KRNY · Kearny Financial Corp.

Kearny Financial Corp. delivered sequential earnings improvement in Q3 fiscal 2026, with net income rising to $10.1 million or $0.16 per diluted share from $9.4 million or $0.15 in the prior quarter, driven by core operating momentum. Net interest income grew 3% to $39.2 million, fueled by a seventh consecutive quarter of margin expansion to 2.21%, reflecting favorable loan portfolio repricing, remixing toward higher-yielding commercial business (up 18.5%), construction (14.3%), and home equity (4.0%) loans, alongside lower funding costs from deposit growth and reduced borrowings. Pre-tax, pre-provision net revenue strengthened 5.5% to $13.0 million, underscoring earnings power amid strategic deposit franchise investments, including four new relationship officers and a specialty deposits team. Non-interest income benefited from a $1.0 million gain on property sales, offsetting fee declines, while expenses rose 3.6% due to seasonal payroll taxes, severance, snow removal, and advertising, partially mitigated by lower professional fees. Asset quality remained stable with non-performing assets at 0.69% of assets and net charge-offs at 0.04% annualized; provision for credit losses fell to $391,000. Balance sheet showed modest growth in loans ($5.78B) and deposits ($5.73B), with total assets at $7.61B and tangible book value per share up 0.9% to $10.02. Management highlighted operational efficiency gains from The Lab Consulting partnership and positioned the bank for sustained earnings via diversified funding and loan yields. The board's $0.11 quarterly dividend, yielding ~5.83%, reinforces capital return amid CET-1 of 14.57%.