The EPS miss and NIM compression are the headline negatives, but sequential loan/deposit growth and a 14% rise in pre-tax pre-provision revenue show underlying operating improvement. Watch for further margin commentary next quarter as the COVID wholesale funding repricing rolls off and loan repricing continues.
Price Chart
Executive Summary
Kearny Bank reported Q1 2027 EPS of $0.16, missing the $0.17 consensus by 5.9%, while net income rose 40% sequentially to $10.0M. Net interest margin contracted 3bp to 2.23% as higher asset yields were offset by the repricing of the final COVID-era wholesale funding position and lower purchase accounting accretion/prepayment income. Loan growth of 1.8% and deposit growth of 2.2% were solid, but the EPS miss and margin compression temper the positive operating momentum.
Key Financial Metrics
Key Facts
- EPS of $0.16 missed consensus of $0.17 (-5.9%)
- Net income of $10.0M, up 40% from $7.2M in the prior quarter
- Net interest margin fell 3bp to 2.23%
- Net interest income decreased $294K to $40.1M
- Total loans grew 1.8% to $5.98B; total deposits grew 2.2% to $5.83B
- Non-performing assets increased to $56.6M (0.73% of assets) from $53.4M
- Quarterly cash dividend maintained at $0.11 per share
- Pre-tax, pre-provision net revenue (non-GAAP) increased 14% to $13.5M
Financial Impact
EPS miss of $0.01 vs consensus; net income $10.0M; NIM compressed 3bp
Risk Factors
- Net interest margin under pressure from funding cost repricing and lower purchase accounting accretion
- Non-performing assets rising to $56.6M could signal credit quality deterioration
- Elevated dividend payout ratio of 70% limits capital flexibility
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3386362 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $9.27 | awaiting T+20 | — | $9.25 (−0.22%) |
Oct 22, 2026 4d ago | Press Release | $9.27 | awaiting T+20 | — | $9.25 (+0.22%) |
Oct 20, 2026 6d ago | 8-K | $9.06 | awaiting T+20 | — | $9.25 (+2.10%) |
Jul 28, 2026 12w ago | Insider Buy | $9.65 $9.89 | ▲ +2.49% | ▼ −0.89% | $9.25 (−4.15%) |
Jul 23, 2026 13w ago | 8-K | $9.12 $9.68 | ▲ +6.14% | ▲ +2.83% | $9.25 (+1.43%) |
Jun 15, 2026 19w ago | Insider Cluster | $8.58 $9.37 | ▲ +9.21% | ▲ +9.96% | $9.25 (+7.81%) |
Jun 12, 2026 19w ago | Insider Cluster | $8.79 $9.33 | ▲ +6.14% | ▲ +4.36% | $9.25 (+5.23%) |
Jun 11, 2026 19w ago | Insider Cluster | $8.66 $9.39 | ▲ +8.43% | ▲ +6.54% | $9.25 (+6.81%) |
Jun 10, 2026 19w ago | Insider Cluster | $8.64 $9.39 | ▲ +8.68% | ▲ +5.06% | $9.25 (+7.06%) |
Jun 9, 2026 19w ago | 144 | $8.46 $9.31 | ▲ +10.05% | ▲ +8.60% | $9.25 (+9.34%) |
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