Kearny Financial
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Kearny Financial (KRNY) investor relations material

Kearny Financial Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary22 Jan, 2026

Executive summary

  • Reported GAAP net income of $9.4 million and diluted EPS of $0.15 for Q2 2026, nearly flat compared to the prior quarter.

  • Pre-tax, pre-provision net revenue rose 3.9% to $12.3 million, reflecting improved core earnings.

  • Net interest margin expanded by 4 bps sequentially to 2.14%, continuing positive momentum.

  • Non-performing assets declined 20.6% to $51.3 million (0.67% of assets), following repayment of a non-performing construction loan.

  • Strategic initiatives included a partnership with The Lab Consulting for operational efficiency and adding a residential lending team.

Financial highlights

  • Net interest income for Q2 2026 was $38.0 million, with net interest margin at 2.14%.

  • Pre-tax, pre-provision net revenue reached $12.3 million, up from $11.9 million in the prior quarter.

  • Non-interest expense decreased by $475,000 to $31.2 million, driven by lower salaries, occupancy, and advertising.

  • Book value per share increased $0.07 to $11.70; tangible book value per share rose $0.07 to $9.93.

  • Dividend yield stood at 5.94%; quarterly cash dividend of $0.11 per share declared.

Outlook and guidance

  • Repricing of CRE and multifamily loans through 2029 is expected to generate material annual interest income growth, assuming similar loan replacement.

  • Management expects recent federal funds rate reductions to benefit earnings due to a liability-sensitive balance sheet.

  • Near-term focus remains on operational efficiency, client experience, and sustainable growth.

  • Maturing loans present opportunities for redeployment into higher-yielding assets.

Lab Consulting: expected ROI or timeline
Explain liability sensitivity's earnings tailwind
Rationale for reducing multifamily loans
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Frequently asked questions

Kearny Financial Corp. is a publicly traded financial holding company that operates primarily through its subsidiary, Kearny Bank. The company provides a range of banking and financial services to individuals, families, and businesses. Its offerings include personal and business checking accounts, savings accounts, money market accounts, and certificates of deposit. Kearny Financial Corp. also offers mortgage loans, commercial real estate loans, and other types of personal and business loans. The company serves its customers through a network of branches located in New Jersey and New York. The company is headquartered in Fairfield, New Jersey, and its shares are listed on the NASDAQ.

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