Kearny Financial reports Q4 net income of $6.8 million

FAIRFIELD, N.J. - Kearny Financial Corp. (NASDAQ:KRNY), the holding company of Kearny Bank, reported net income of $6.8 million, or $0.11 per diluted share, for the quarter ended June 30, 2025, compared to $6.6 million, or $0.11 per diluted share, for the previous quarter. According to InvestingPro data, the company, currently trading at $6.54, appears slightly undervalued based on Fair Value analysis, with analysts setting price targets between $7.00 and $7.50.

The company posted a 10 basis point increase in net interest margin to 2.00% in the fourth quarter, while net interest income rose 5.3% to $35.8 million. Pre-tax, pre-provision earnings per share increased 23% to $0.16 per diluted share.

For the fiscal year ended June 30, 2025, Kearny reported net income of $26.1 million, or $0.42 per diluted share, compared to a net loss of $86.7 million, or $1.39 per diluted share, for the previous fiscal year. The prior year’s results included a non-cash, after-tax goodwill impairment of $95.3 million.

"We are pleased to report 23% growth in pre-tax, pre-provision earnings per share this quarter, driven by ten basis points of net interest margin expansion," said Craig L. Montanaro, President and Chief Executive Officer, in a press release statement.

Credit quality remained strong with net charge-offs less than 0.01% of average loans for both the quarter and fiscal year. Non-interest expense to average assets was 1.58%, reflecting the company’s expense management efforts.

Total assets were $7.74 billion at June 30, 2025, an increase of $57.0 million, or 0.7%, from June 30, 2024. Loans receivable totaled $5.81 billion, up $80.2 million, or 1.4%, from the previous year.

The company’s Board of Directors declared a quarterly cash dividend of $0.11 per share, payable on August 26, 2025, to stockholders of record as of August 12, 2025. Notable for income investors, InvestingPro data shows the stock offers a significant 6.73% dividend yield, with a track record of maintaining dividend payments for 11 consecutive years.

Kearny also announced it received regulatory approval to consolidate three branch locations, scheduled to close in October 2025, which is expected to have minimal impact on financial results. While the company’s overall financial health score is currently rated as weak by InvestingPro analysts, subscribers can access additional insights, including 6 more exclusive ProTips and comprehensive financial metrics, to better understand the company’s outlook.

In other recent news, Kearny Financial Corp. reported its third-quarter earnings, which did not meet analyst expectations. The company posted earnings of $0.11 per share, falling short of the anticipated $0.12 per share. Revenue also came in below estimates, reaching $38.6 million compared to the expected $39.23 million. Despite these misses, Kearny Financial’s stock experienced an increase, driven by an expansion in the company’s net interest margin. Management’s expression of confidence in future performance contributed to the positive investor sentiment. These developments were accompanied by improved financial guidance from the company. The recent news highlights the company’s focus on margin expansion, which appears to have resonated positively with investors.

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