Kearny Financial (KRNY) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net income was $10.0M, or $0.16 diluted EPS; net income rose 40.0% QoQ and compared with $9.5M and $0.15 a year earlier.

• Adjusted pre-tax, pre-provision net revenue was $13.5M, up 14% YoY and 14.0% QoQ; loan and deposit growth and expense management supported stronger core earnings.

Financial highlights

• Net interest income was $40.1M, up $2.4M YoY but down $294,000 QoQ; NIM was 2.23%, up 13 bps YoY and down 3 bps QoQ.

• Non-interest expense fell 6.1% QoQ to $31.8M; income before taxes rose 15.0% to $12.7M.

• Provision for credit losses was $830,000 versus an $82,000 reversal a year earlier; non-interest income decreased $644,000 YoY to $5.2M.

• Total assets were $7.78B, up $95.7M QoQ; net loans receivable increased $104.5M to $5.93B.

Outlook and guidance

• $722M of multifamily and CRE loans are scheduled to mature or reprice in 2027, potentially improving yields; outcomes depend on rates, borrower behavior, credit discipline and replacement opportunities.

• Loan repricing and balance-sheet remixing are expected to support further NIM expansion; strategy targets deeper commercial relationships and relationship-based deposit growth.

• Retail realignment focuses on outside sales, relationship expansion, lower fixed costs and automation to improve operating efficiency.