The EPS miss vs consensus and NIM compression are headwinds, but accelerating loan/deposit growth and improving PTPP revenue suggest underlying momentum. Watch next quarter's NIM trajectory as COVID-era funding repricing rolls off and loan repricing benefits accrue.
Price Chart
Executive Summary
Kearny Financial Corp. reported Q1 FY2027 net income of $10.0M ($0.16 diluted EPS), a 40% sequential increase from $7.2M ($0.11) in Q4 FY2026, but a 5.9% miss vs consensus EPS of $0.17. Net interest margin contracted 3bp to 2.23% due to lower prepayment income and COVID-era wholesale funding repricing, though core earnings strengthened with PTPP revenue up 14% to $13.5M. The company maintained its $0.11 quarterly dividend and highlighted 7.2% annualized loan growth and 8.7% annualized deposit growth.
Key Financial Metrics
Key Facts
- Net income $10.0M, or $0.16 diluted EPS, vs $7.2M ($0.11) prior quarter — up 40% sequentially
- EPS of $0.16 missed consensus estimate of $0.17 (-5.9%)
- Net interest margin narrowed 3bp to 2.23% from 2.26% QoQ
- Pre-tax pre-provision net revenue (non-GAAP) rose 14% to $13.5M
- Loans grew 1.8% QoQ ($105.1M) to $5.98B; deposits grew 2.2% QoQ ($123.9M) to $5.83B
- Quarterly dividend maintained at $0.11 per share
- Non-performing assets increased to $56.6M (0.73% of total assets) from $53.4M (0.70%)
- Tangible book value per share fell 1.9% to $9.88 due to AFS securities mark-to-market losses
Financial Impact
Sequential net income improvement of $2.9M (+40%) but EPS miss vs consensus; NIM compression of 3bp; $13.8M increase in AOCI from rate movements reducing TBV by $0.19
Risk Factors
- Net interest margin compression from rising deposit costs and lower prepayment income
- Non-performing assets trending higher for three consecutive quarters
- AOCI losses from rate-sensitive securities portfolio pressuring tangible book value
- EPS has now missed consensus in 3 of the last 4 quarters
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001617242-26-000029 |
| Document: krny-20261022.htm | 0001617242-26-000029 |
| Document: krny-20261022xexx992xfin.htm | 0001617242-26-000029 |
| Document: 0001617242-26-000029-index-headers.html | 0001617242-26-000029 |
| Document: 0001617242-26-000029-index.html | 0001617242-26-000029 |
| Document: 0001617242-26-000029.txt | 0001617242-26-000029 |
| 8-K Data (Synthetic) | 0001617242-26-000029 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $9.27 | awaiting T+20 | — | $9.29 (+0.23%) |
Oct 22, 2026 5d ago | Press Release | $9.27 | awaiting T+20 | — | $9.29 (−0.23%) |
Oct 20, 2026 7d ago | 8-K | $9.06 | awaiting T+20 | — | $9.29 (+2.55%) |
Jul 28, 2026 13w ago | Insider Buy | $9.65 $9.89 | ▲ +2.49% | ▼ −0.89% | $9.29 (−3.72%) |
Jul 23, 2026 13w ago | 8-K | $9.12 $9.68 | ▲ +6.14% | ▲ +2.83% | $9.29 (+1.88%) |
Jun 15, 2026 19w ago | Insider Cluster | $8.58 $9.37 | ▲ +9.21% | ▲ +9.96% | $9.29 (+8.29%) |
Jun 12, 2026 19w ago | Insider Cluster | $8.79 $9.33 | ▲ +6.14% | ▲ +4.36% | $9.29 (+5.70%) |
Jun 11, 2026 19w ago | Insider Cluster | $8.66 $9.39 | ▲ +8.43% | ▲ +6.54% | $9.29 (+7.29%) |
Jun 10, 2026 19w ago | Insider Cluster | $8.64 $9.39 | ▲ +8.68% | ▲ +5.06% | $9.29 (+7.54%) |
Jun 9, 2026 20w ago | 144 | $8.46 $9.31 | ▲ +10.05% | ▲ +8.60% | $9.29 (+9.82%) |
US Market Status
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