Kearny Financial Reports Strong Q2 Earnings Growth and Improved Net Interest Margin
KRNY sits 48% above its 52-week low of $5.445.
Summary
Kearny Financial Corp. reported a 43.9% increase in Q2 diluted EPS and a 16.4% rise in net interest income, alongside an improved net interest margin and reduced loan modifications.
Key Events · Earnings and Guidance · KRNY
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Strong Earnings Growth
Net income for the quarter ended December 31, 2025, increased to $9.4 million ($0.15 diluted EPS) from $6.6 million ($0.10 diluted EPS) in the prior year, a 43.9% increase in diluted EPS. Year-to-date net income rose to $19.0 million ($0.30 diluted EPS) from $12.7 million ($0.20 diluted EPS).
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Improved Net Interest Income and Margin
Net interest income increased by $5.4 million (16.4%) to $38.0 million for the quarter, with the net interest margin expanding by 32 basis points to 2.14%.
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Reduced Loan Modifications
Loan modifications made to borrowers experiencing financial difficulty significantly decreased to $3.2 million in Q2 2025, down from $15.5 million in Q2 2024, indicating improving credit health.
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Increase in Non-Performing Assets
Non-performing assets increased by $5.7 million to $51.3 million (0.67% of total assets) at December 31, 2025, primarily due to an increase in non-performing multi-family mortgage loans.
Analysis · KRNY · Finance
Kearny Financial Corp. delivered a robust second fiscal quarter, demonstrating significant year-over-year growth in net income and diluted EPS. The company's net interest income and net interest margin both saw healthy increases, reflecting effective interest rate management and a favorable repricing strategy that shifted deposits to non-interest-bearing accounts. While non-performing assets experienced a modest increase, the substantial decrease in new loan modifications indicates an improving credit quality trend. The company also maintained strong capital ratios, well above regulatory minimums, providing a solid financial foundation. This filing provides comprehensive details following the preliminary EPS announcement on January 22, 2026.
At the time of this filing, KRNY was trading at $8.06 on NASDAQ in the Finance sector, with a market capitalization of approximately $521.8M. The 52-week trading range was $5.45 to $8.50. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.