Kearny Financial Corp. (KRNY) SEC Filings & Earnings Calls

Net interest margin compression from COVID-era wholesale funding repricing and lower purchase accounting accretion/prepayment income

“Net interest margin was 2.23% for the quarter ended September 30, 2026, a decrease of three basis points from the prior quarter, as the benefit from higher asset yields was offset by the repricing of the Company’s final remaining COVID-era wholesale funding position and declines in purchase accounting accretion and loan prepayment penalty income” · word for word

Non-recurring write-down on other real estate owned property

“non-recurring write-down of $122,000 on one other real estate owned property resulting from an updated appraisal” · word for word

Credit quality deterioration

“Our loan portfolio experienced an annualized net charge-off rate of 0.04% for the year ended June 30, 2026, an increase of two basis points from the 0.02% rate for the year ended June 30, 2025.” · word for word

Nonperforming asset increase

“Total nonperforming assets increased by $7.8 million to $53.4 million at June 30, 2026 from $45.6 million at June 30, 2025.” · word for word

Concentration in multi-family and residential mortgages

“At June 30, 2026, multi-family mortgage loans totaled $2.50 billion, or 42.5% of our loan portfolio ... one- to four-family residential mortgage loans totaled $1.79 billion, or 30.4% of our loan portfolio.” · word for word

Geographic concentration

“Our commercial mortgage loans are primarily secured by properties located in New Jersey, New York and the surrounding states.” · word for word

Interest rate risk from securities portfolio

“All of our securities carry market risk insofar as increases in market interest rates have caused, and may continue to cause, a decrease in their market value.” · word for word

Quarterly net income decline from prior quarter due to non-recurring items

“Net income for Q4 FY2026 impacted by $1.6M discrete tax charge, $745K severance expense, and $262K OREO acquisition expense”

Deposit outflows partially offset by borrowing increase

“Deposits decreased $19.5M from March 31, 2026 while borrowings increased $90.0M”

Rising nonperforming assets in multi-family CRE

“Nonperforming assets increased $6.8 million to $52.4 million, or 0.69% of total assets, at March 31, 2026, from $45.6 million, or 0.59% of total assets, at June 30, 2025” · word for word

Interest rate risk from duration mismatch

“risk factors including re-pricing risk, basis risk, yield curve risk and option risk.” · word for word

Concentration in multi-family mortgage loans

“Multi-family mortgage $ 2,555,001 $ 2,709,654 $ (154,653)” · word for word

Potential credit risk from loan portfolio repricing

“ongoing favorable repricing and remixing of loan portfolio”

Rising nonperforming multi-family loans

“The increase in nonperforming assets was largely attributable to an increase in nonperforming multi-family mortgage loans” · word for word

Loan portfolio contraction

“Net loans receivable decreased $58.3 million, or 1.0%, to $5.71 billion at December 31, 2025 from $5.77 billion at June 30, 2025.” · word for word

Asset quality improvement reduces credit risk, but NIM still low at 2.14%.

“NIM 2.14% remains low; NPA decline is positive.”

Concentrated CRE credit risk

“Nonperforming assets increased $19.0 million to $64.6 million... due to a single construction loan that became 90 days past due” · word for word

Loan and deposit shrinkage

“Net loans receivable decreased $44.4 million, or 0.8%... Total deposits decreased $43.3 million, or 0.8%” · word for word