Kearny Financial stock posts 40% earnings gain in fiscal Q1

Kearny Financial Corp. reported stronger earnings for the quarter ended September 30, 2026, as lower operating expenses and continued loan and deposit growth supported its first fiscal quarter of 2027. The company announced the results on October 22, 2026, in an investor-relations release.

Profit Growth Meets Balance-Sheet Expansion

Net income rose 40.0% from the previous quarter to 10.0 million US dollars, or 0.16 US dollars per diluted share. Pre-tax, pre-provision net revenue, a non-GAAP measure, increased 14.0% to 13.5 million US dollars.

Total assets reached 7.78 billion US dollars at September 30. Loans receivable increased 1.8% from June 30 to 5.98 billion US dollars, while deposits rose 2.2% to 5.83 billion US dollars. On an annualized basis, total loans grew 7.2% and deposits grew 8.7%.

Margin Pressures Remain Visible

Net interest margin declined three basis points from the prior quarter to 2.23%. Kearny Financial cited the repricing of its remaining COVID-era wholesale funding, lower purchase-accounting accretion and reduced loan prepayment penalty income as factors weighing on the margin.

Net interest income fell 0.7% to 40.1 million US dollars, although the company said net interest income excluding loan prepayment penalty income and purchase-accounting accretion increased from the prior period. Non-interest expense declined 6.1% to 31.8 million US dollars, helped in part by the absence of a prior-period severance charge.

Dividend And Commercial Banking Focus

The board declared a quarterly cash dividend payable on November 18, 2026, to shareholders of record on November 4. Kearny Financial also launched a dedicated Nonprofit and Independent Education Banking team and continued shifting its loan portfolio toward commercial and construction lending while reducing multifamily mortgage exposure.

Management said ongoing loan repricing and balance-sheet remixing are expected to support further margin expansion in coming quarters. Investors will therefore focus on whether deposit growth can fund loan expansion without adding pressure to funding costs.

Kearny Financial Business Profile

Kearny Financial is the Maryland-based holding company for Kearny Bank, a full-service community bank with approximately 8 billion US dollars in assets. According to the company profile, Kearny Bank operates 40 retail branches across 10 New Jersey counties and Brooklyn and Staten Island in New York. Its services cover consumer, commercial, municipal and nonprofit clients, alongside private-client and investment-services offerings. The company is positioned as a regional community-bank franchise with a focus on relationship-based banking in its local markets, as described in its corporate overview.

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