The GAAP EPS miss vs consensus is partially explained by non-recurring charges, but the sequential decline in pre-tax, pre-provision net revenue (from $13.0M to $11.8M) and rising efficiency ratio (71.25% to 74.09%) warrant caution. Monitor whether the margin expansion trajectory can offset expense growth in FY2027, and watch for further updates on the retail banking realignment and AI-driven efficiency initiatives.
Price Chart
Executive Summary
Kearny Financial Corp. reported Q4 FY2026 GAAP diluted EPS of $0.11, a 31% sequential decline from $0.16 in Q3, impacted by $2.6M in non-recurring items including a $1.6M discrete tax charge and $745K severance. Net interest margin expanded 5 bps to 2.26%, marking the seventh consecutive quarter of improvement, but GAAP net income fell 29% QoQ to $7.2M. The company maintained its $0.11 quarterly dividend. The sequential earnings miss is notable, but the underlying margin trend and full-year net income growth of 39% to $36.3M provide a mixed picture for traders.
Key Financial Metrics
Key Facts
- Q4 FY2026 GAAP diluted EPS of $0.11, down from $0.16 in Q3 FY2026 and below the $0.17 Street consensus
- Net interest margin expanded 5 bps sequentially to 2.26%, the seventh consecutive quarter of improvement
- Full-year FY2026 net income of $36.3M, up 39.1% from $26.1M in FY2025
- Quarterly cash dividend maintained at $0.11 per share, payable August 26, 2026
- Non-recurring items of ~$2.6M impacted Q4 results: $1.6M DTA valuation allowance, $745K severance, $262K OREO expense
- Adjusted diluted EPS (non-GAAP) was $0.15, flat with the prior quarter and in line with the $0.15 Street consensus for Q3
Financial Impact
GAAP net income declined 29% QoQ to $7.2M; adjusted net income (non-GAAP) was $9.3M, down 2% from $9.4M in Q3. Full-year net income grew 39% to $36.3M.
Risk Factors
- Rising non-interest expense (+4.8% QoQ) outpacing net interest income growth (+2.9% QoQ)
- Non-performing assets increased to $53.4M (0.70% of total assets) from $52.4M (0.69%) in Q3
- Effective tax rate spiked to 34.9% from 19.8% due to a $1.6M DTA valuation allowance
- Borrowings increased 8.5% QoQ to $1.15B, increasing interest expense on borrowings by 24.6%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001617242-26-000017 |
| Document: krny-20260723xexx992xfin.htm | 0001617242-26-000017 |
| Document: krny-20260723.htm | 0001617242-26-000017 |
| Document: 0001617242-26-000017-index-headers.html | 0001617242-26-000017 |
| Document: 0001617242-26-000017-index.html | 0001617242-26-000017 |
| Document: 0001617242-26-000017.txt | 0001617242-26-000017 |
| 8-K Data (Synthetic) | 0001617242-26-000017 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $9.27 | awaiting T+20 | — | $9.29 (+0.20%) |
Oct 22, 2026 5d ago | Press Release | $9.27 | awaiting T+20 | — | $9.29 (−0.20%) |
Oct 20, 2026 7d ago | 8-K | $9.06 | awaiting T+20 | — | $9.29 (+2.52%) |
Jul 28, 2026 12w ago | Insider Buy | $9.65 $9.89 | ▲ +2.49% | ▼ −0.89% | $9.29 (−3.75%) |
Jul 23, 2026 13w ago | 8-K | $9.12 $9.68 | ▲ +6.14% | ▲ +2.83% | $9.29 (+1.85%) |
Jun 15, 2026 19w ago | Insider Cluster | $8.58 $9.37 | ▲ +9.21% | ▲ +9.96% | $9.29 (+8.26%) |
Jun 12, 2026 19w ago | Insider Cluster | $8.79 $9.33 | ▲ +6.14% | ▲ +4.36% | $9.29 (+5.67%) |
Jun 11, 2026 19w ago | Insider Cluster | $8.66 $9.39 | ▲ +8.43% | ▲ +6.54% | $9.29 (+7.26%) |
Jun 10, 2026 19w ago | Insider Cluster | $8.64 $9.39 | ▲ +8.68% | ▲ +5.06% | $9.29 (+7.51%) |
Jun 9, 2026 19w ago | 144 | $8.46 $9.31 | ▲ +10.05% | ▲ +8.60% | $9.29 (+9.79%) |
US Market Status
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