Executive Summary
Kearny Financial Corp (KRNY) reported Q1 2026 results characterized by a strong bottom-line despite a pronounced top-line contraction. Revenue for the quarter stood at $11.885 million, while income before tax was $11.967 million and net income reached $9.506 million, translating to an EPS of $0.19 and an annualized net income margin of approximately 80%. The outsized net income margin appears driven by a combination of tax efficiency and potential one-time or non-operating items, given the absence of a disclosed cost of revenue and the substantial drop in revenue year over year. Management commentary—not detailed in the provided inputs—would be critical to confirming the sustainability of this profitability mix.
From a balance sheet and liquidity standpoint, KRNY exhibits a solid foundation. Total assets are $7.65 billion with stockholders’ equity of $753 million. The liquidity profile is robust, with cash and cash equivalents of $130.1 million and short-term investments of $1.016 billion, yielding a substantial liquidity cushion against near-term funding needs. The company also carries a net cash position (net debt of approximately -$130 million), which supports financial flexibility amid potential rate volatility or deposit fluctuations. The reported results imply meaningful profitability relative to assets and equity benchmarks, but the revenue decline (YoY -86.6%, QoQ -85.8%) warrants close scrutiny of recurring earnings drivers and risk factors tied to the loan portfolio and balance sheet composition.
Overall, KRNY presents a mixed but compelling narrative for investors: a resilient quarterly profit framework and strong liquidity against a backdrop of revenue compression and potential sensitivity to regional CRE and retail deposit dynamics. The durability of the earnings platform will hinge on management’s ability to translate liquidity and capital strength into sustainable net interest income and controlled expense growth while monitoring credit quality in a slowing CRE cycle.
Key Performance Indicators
QoQ: -85.83% | YoY:-86.62%
QoQ: 42.99% | YoY:110.55%
QoQ: 72.73% | YoY:113.10%
Key Insights
Revenue performance: Q1 2026 revenue of $11,885,000; YoY change: -86.62%; QoQ change: -85.83%.
Net income and margins: Net income of $9,506,000; Net income margin 0.7998 (approximately 80%). YoY net income change: +110.55%; QoQ net income change: +42.99%. Earnings per share (EPS): $0.19; YoY EPS change: +113.10%; QoQ EPS change: +72.73%.
Tax and pre-tax metrics: Income before tax of $11,967,000; Income tax expense $2,461,000; Effective tax rate implied ~20.6% for the quarter.
Balance sheet an...
Financial Highlights
Revenue performance: Q1 2026 revenue of $11,885,000; YoY change: -86.62%; QoQ change: -85.83%.
Net income and margins: Net income of $9,506,000; Net income margin 0.7998 (approximately 80%). YoY net income change: +110.55%; QoQ net income change: +42.99%. Earnings per share (EPS): $0.19; YoY EPS change: +113.10%; QoQ EPS change: +72.73%.
Tax and pre-tax metrics: Income before tax of $11,967,000; Income tax expense $2,461,000; Effective tax rate implied ~20.6% for the quarter.
Balance sheet and liquidity: Cash and cash equivalents $130,139,000; Short-term investments $1,016,182,000; Total current assets $6,898,140,000; Total assets $7,648,010,000; Net receivables $5,751,819,000; Goodwill and intangibles combined $114,842,000; Retained earnings $344,287,000; Total stockholders’ equity $753,204,000; Net debt position approximately -$130,139,000 (net cash).
Notes on readability of ratios: The provided ratiosInfo section is largely empty; peer-bank comparisons are drawn from listed peers’ Q1/Q2/Q3 2025 data, highlighting KRNY’s comparable ROA/ROE profiles with the group rather than a direct one-to-one benchmark. The revenue line’s steep year-over-year decline juxtaposed with a strong quarterly net income raises questions about one-time items or non-operating gains that require clarification from the earnings call and subsequent filings.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.89M |
-86.62% |
-85.83% |
| Net Income |
9.51M |
110.55% |
42.99% |
| EPS |
0.19 |
113.10% |
72.73% |
Management Commentary
Transcript highlights not provided in the input data. No management quotes or thematic extracts are available to synthesize into themes such as strategy, operations, or market conditions.
Not available in the provided data.
— N/A
Not available in the provided data.
— N/A
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given the top-line decline (YoY and QoQ) and the net income strength in Q1 2026, investors should watch for: (1) management’s commentary on revenue sustainability, particularly net interest income and non-interest income composition; (2) deposit trends and funding costs in a potentially higher-rate environment; (3) loan portfolio mix with CRE exposure and potential credit quality developments; (4) capital deployment plans (share repurchases, dividends, or acquisitions) and regulatory capital considerations. Absent specific targets, the plausibility of achieving consistent earnings growth will depend on KRNY’s ability to stabilize net interest income, manage costs, and maintain credit discipline amid regional economic conditions.