Kearny Financial Q3 Net Income Rises, Declares $0.11 Dividend; NIM Up 7 Bps
Kearny Financial reported Q3 net income of $10.1 million, or $0.16 per share, and declared a $0.11 per share cash dividend payable May 20. Net interest margin rose seven basis points to 2.21%, while commercial loans climbed 18.5%, construction 14.3% and home equity 4%, lifting tangible book value to $10.02.
1. Q3 Financial Results and Dividend
Kearny Financial Corp. achieved net income of $10.1 million, or $0.16 per diluted share, for the quarter ended March 31, 2026, up from $9.4 million, or $0.15 per share in the prior quarter. The Board declared a quarterly cash dividend of $0.11 per share, payable May 20 to shareholders of record on May 6.
2. Margin Expansion and Core Earnings
Net interest margin expanded seven basis points sequentially to 2.21%, driven by a 3% increase in net interest income. Pre-tax, pre-provision net revenue rose 5.5% to $13.0 million, reflecting favorable repricing and remixing of the loan portfolio alongside improving funding dynamics.
3. Loan Portfolio and Balance Sheet Trends
Loans receivable grew to $5.78 billion, up 0.4% from December 31, 2025, led by commercial and industrial loans (+18.5%), construction (+14.3%) and home equity (+4.0%), while multifamily mortgage exposure was strategically reduced. Total assets stood at $7.61 billion as deposits increased 0.3% to $5.73 billion.
4. Capital Position and Strategic Initiatives
Tangible book value per share rose $0.09 to $10.02. The company strengthened its deposit franchise by adding four commercial deposit relationship officers and launching a Specialty Deposits team targeting high-value verticals. A partnership with a management consulting firm is underway to enhance process efficiency and automation.