Kearny Financial Corp.
For the period ended Dec 31, 2025. Filed Feb 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 5, 2026
KRNY$9.01-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001617242-25-000073
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001617242-26-000004
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 99 current paragraphs.
34 unchanged; 37 reworded; 11 added; 1 removed; 0 previous and 17 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Nonperforming Assets. Nonperforming assets reflected an increase of $5.7 million to $51.3 million, or 0.67% of total assets, at December 31, 2025, from $45.6 million, or 0.59% of total assets, at June 30, 2025, respectively. The increase in nonperforming assets was largely attributable to an increase in nonperforming multi-family mortgage loans, partially offset by a decrease in nonperforming residential mortgage loans.
Current report
Other non-interest expense increased $764,000 to $3.8 million for the quarter ended December 31, 2025, from $3.1 million for the quarter ended December 31, 2024, primarily driven by $242,000 in non-recurring professional fees incurred in the current period associated with our strategic initiative and partnership with The Lab Consulting, higher loan related legal expenses, and a provision for credit losses on off balance sheet commitments in the current period compared to a reversal recorded in the prior period.
Current report
Net interest margin increased 31 basis points to 2.12% for the six months ended December 31, 2025, from 1.81% for the six months ended December 31, 2024 and reflected a decrease in the cost of interest-bearing liabilities and a decrease in the average balance of borrowings, partially offset by decreases in the average balances of investment securities and other interest-earning assets.
Current report
(4)Includes average balances of non-interest-bearing deposits of $588.3 million and $602.0 million for the six months ended December 31, 2025 and 2024, respectively.
Current report
Provision for Credit Losses. The provision for credit losses increased $270,000 to $485,000 for the six months ended December 31, 2025, compared to $215,000 for the six months ended December 31, 2024. The provision for the six months ended December 31, 2025 was primarily driven by quantitative risk-factor adjustments and individually evaluated reserves associated with one non-performing C&I loan that was fully charged off during the current period, partially offset by a decrease in the balance of loans receivable. By comparison, the provision for credit losses for the six months ended December 31, 2024 was primarily driven by loan growth.
Current report
Non-Interest Income. Total non-interest income increased $1.9 million to $11.4 million for the six months ended December 31, 2025, compared to $9.5 million for the six months ended December 31, 2024.
Current report
Fees and service charges increased $925,000 to $2.2 million for the six months ended December 31, 2025, compared to $1.3 million for the six months ended December 31, 2024, primarily reflecting $487,000 of higher deposit and branch related fee income, and higher loan related fee income of $245,000 associated with the payoff of a single construction loan.
Current report
Non-Interest Expense. Total non-interest expense increased $3.5 million to $62.9 million for the six months ended December 31, 2025, compared to $59.3 million for the six months ended December 31, 2024.
Current report
Salaries and employee benefits increased $2.0 million to $37.1 million for the six months ended December 31, 2025, compared to $35.1 million for the six months ended December 31, 2024. This increase was primarily driven by higher salary expense and payroll taxes from annual merit increases, and an increase in incentive compensation.
Current report
FDIC insurance premiums decreased $408,000 to $2.7 million for the six months ended December 31, 2025, from $3.1 million for the six months ended December 31, 2024, primarily driven by higher capital ratios.
Current report
Other non-interest expense increased $870,000 to $7.3 million for the six months ended December 31, 2025, compared to $6.4 million for the six months ended December 31, 2024, primarily driven by $242,000 in non-recurring professional fees incurred in the current period associated with our strategic initiative and partnership with The Lab Consulting, and higher loan related expenses.
Removed paragraphs (1)
Previous report
Nonperforming Assets. Nonperforming assets increased $19.0 million to $64.6 million, or 0.84% of total assets, at September 30, 2025, from $45.6 million, or 0.59% of total assets, at June 30, 2025, respectively. The increase was due to a single construction loan that became 90 days past due but remains on accrual status. The loan is secured by collateral under contract for sale, with all covenants satisfied and a loan-to-sale price ratio of 72%. No provision for credit losses related to this loan was recorded as of September 30, 2025, as full repayment is expected upon completion of the sale.
Reworded paragraphs (37)
Previous wording
This Quarterly Report on Form 10-Q may include certain forward-looking statements based on current management expectations. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “continue”, or similar terms or variations on those terms, or the negative of those terms. The actual results of the Company could differ materially from those management expectations. This includes statements regarding general economic and geopolitical conditions, including potential recessionary conditions and the imposition of tariffs or other domestic or international governmental policies, legislative and regulatory changes, monetary and fiscal policies of the federal government, the effects of the federal government shutdown, changes in tax policies, rates and regulations of federal, state and local tax authorities and failure to integrate or profitably operate acquired businesses. Additional potential factors include changes in interest rates, the rate of inflation, deposit flows, cost of funds, demand for loan products and financial services, competition and changes in the quality or composition of loan and investment portfolios of the Company. Other factors that could cause future results to vary from current management expectations include changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Further description of the risks and uncertainties to the business are included in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025, under “Item 1A. Risk Factors.”
Current wording
This Quarterly Report on Form 10-Q may include certain forward-looking statements based on current management expectations. Such forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may”, “will”, “believe”, “expect”, “estimate”, “anticipate”, “continue”, or similar terms or variations on those terms, or the negative of those terms. The actual results of the Company could differ materially from those management expectations. This includes statements regarding general economic and geopolitical conditions, including potential recessionary conditions and the imposition of tariffs or other domestic or international governmental policies, legislative and regulatory changes, monetary and fiscal policies of the federal government, the effects of any federal government shutdown, changes in tax policies, rates and regulations of federal, state and local tax authorities and failure to integrate or profitably operate acquired businesses. Additional potential factors include changes in interest rates, the rate of inflation, deposit flows, cost of funds, demand for loan products and financial services, competition and changes in the quality or composition of loan and investment portfolios of the Company. Other factors that could cause future results to vary from current management expectations include changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and prices. Further description of the risks and uncertainties to the business are included in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025, under “Item 1A. Risk Factors.”
Previous wording
Executive Summary. Total assets decreased $92.4 million to $7.65 billion at September 30, 2025 from $7.74 billion at June 30, 2025. The decrease primarily reflected decreases in net loans receivable and cash and cash equivalents, and declines in the market values of interest rate derivatives.
Current wording
Executive Summary. Total assets decreased $119.6 million to $7.62 billion at December 31, 2025 from $7.74 billion at June 30, 2025. The decrease primarily reflected decreases in net loans receivable, cash and cash equivalents, investment securities and declines in the market values of interest rate derivatives.
Previous wording
Investment Securities. Investment securities available for sale increased $3.2 million to $1.02 billion at September 30, 2025, from $1.01 billion at June 30, 2025. This increase was largely the result of purchases of $71.2 million and an $11.4 million increase in the fair value of the portfolio to a net unrealized loss of $100.8 million, partially offset by principal repayments of $79.4 million.
Current wording
Investment Securities. Investment securities available for sale decreased $12.6 million to $1.00 billion at December 31, 2025, from $1.01 billion at June 30, 2025. This decrease was driven by principal repayments of $216.8 million, partially offset by purchases of $188.1 million and a $16.0 million increase in the fair value of the portfolio to a net unrealized loss of $96.2 million.
Previous wording
Investment securities held to maturity decreased $3.5 million to $116.7 million at September 30, 2025 from $120.2 million at June 30, 2025. This decrease was driven by principal repayments of $3.5 million.
Current wording
Investment securities held to maturity decreased $7.4 million to $112.8 million at December 31, 2025 from $120.2 million at June 30, 2025. This decrease was driven by principal repayments of $7.5 million.
Previous wording
Loans Held-for-Sale. Loans held-for-sale totaled $6.7 million at September 30, 2025 as compared to $5.9 million at June 30, 2025 and are reported separately from the balance of net loans receivable. During the three months ended September 30, 2025, we sold $27.9 million of residential mortgage loans, resulting in a gain on sale of $199,000.
Current wording
Loans Held-for-Sale. Loans held-for-sale totaled $8.8 million at December 31, 2025 as compared to $5.9 million at June 30, 2025 and are reported separately from the balance of net loans receivable. During the six months ended December 31, 2025, we sold $59.3 million of residential mortgage loans, resulting in a gain on sale of $423,000.
Previous wording
Net Loans Receivable. Net loans receivable decreased $44.4 million, or 0.8%, to $5.72 billion at September 30, 2025 from $5.77 billion at June 30, 2025. Details regarding the change in the loan portfolio, by loan segment, are presented below:
Current wording
Net Loans Receivable. 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. Details regarding the change in the loan portfolio, by loan segment, are presented below:
Previous wording
Commercial loan origination volume for the three months ended September 30, 2025 totaled $61.4 million, comprised of $21.7 million of commercial mortgage loan originations, $24.5 million of commercial business loan originations and construction loan disbursements of $15.2 million. Purchases of commercial business loans totaled $5.1 million for the same period.
Current wording
Commercial loan origination volume for the six months ended December 31, 2025 totaled $161.7 million, comprised of $50.7 million of commercial mortgage loan originations, $62.7 million of commercial business loan originations and construction loan disbursements of $48.4 million. Purchases of commercial business loans totaled $30.4 million for the same period.
Previous wording
One- to four-family residential mortgage loan origination volume, excluding loans held-for-sale, totaled $42.2 million for the three months ended September 30, 2025. Home equity loan and line of credit origination volume for the same period totaled $8.7 million.
Current wording
One- to four-family residential mortgage loan origination volume, excluding loans held-for-sale, totaled $64.7 million for the six months ended December 31, 2025. Home equity loan and line of credit origination volume for the same period totaled $19.6 million.
Previous wording
(1)At September 30, 2025 and June 30, 2025, includes $896,707 and $891,995 of non-owner occupied commercial real estate (“CRE”) loans with an LTV of 52% and 53%, respectively, and includes $92,262 and $94,561 of owner occupied CRE loans with an LTV of 47% and 48%, respectively.
Current wording
(1)At December 31, 2025 and June 30, 2025, includes $896,121 and $891,995 of non-owner occupied commercial real estate (“CRE”) loans with an LTV of 53% in each period, respectively, and includes $94,057 and $94,561 of owner occupied CRE loans with an LTV of 48% in each period, respectively.
Previous wording
Allowance for Credit Losses (“ACL”). At September 30, 2025 the ACL totaled $45.1 million, or 0.78% of total loans, compared to $46.2 million, or 0.79% of total loans, at June 30, 2025. The ACL for the three months ended September 30, 2025 reflected net charge-offs of $1.0 million.
Current wording
Allowance for Credit Losses (“ACL”). At December 31, 2025 the ACL totaled $45.0 million, or 0.78% of total loans, compared to $46.2 million, or 0.79% of total loans, at June 30, 2025. The decrease for the six months ended December 31, 2025 was largely attributable to net charge-offs of $1.7 million, partially offset by a provision for credit losses of $485,000.
Previous wording
Other Assets. The aggregate balance of other assets, including premises and equipment, FHLB stock, interest receivable, goodwill, core deposit intangibles, bank owned life insurance (“BOLI”), deferred income taxes, and other assets, decreased $11.3 million to $656.0 million at September 30, 2025 from $667.3 million at June 30, 2025. The decrease in the balance of these other assets during the three months ended September 30, 2025 primarily reflected a decrease in the market value of interest rate derivatives, a decrease in FHLB stock and a decrease in properties held for sale, partially offset by an increase in BOLI. The remaining change generally reflected normal operating fluctuations within these line items.
Current wording
Other Assets. The aggregate balance of other assets, including premises and equipment, FHLB stock, interest receivable, goodwill, core deposit intangibles, bank owned life insurance (“BOLI”), deferred income taxes, and other assets, decreased $24.2 million to $643.1 million at December 31, 2025 from $667.3 million at June 30, 2025. The decrease in the balance of these other assets during the six months ended December 31, 2025 primarily reflected a decrease in the market value of interest rate derivatives, a decrease in FHLB stock and a decrease in properties held for sale, partially offset by an increase in BOLI. The remaining change generally reflected normal operating fluctuations within these line items.
Previous wording
Deposits. Total deposits decreased $43.3 million, or 0.8%, to $5.63 billion at September 30, 2025 from $5.68 billion at June 30, 2025. Included in total deposits are retail and brokered time deposits of $1.21 billion and $759.2 million, respectively, at September 30, 2025, and $1.22 billion and $757.7 million, respectively, at June 30, 2025. This decrease was primarily driven by declines in interest-bearing demand deposits and certificates of deposits. The following table sets forth the distribution of, and changes in, deposits, by type, for the periods indicated:
Current wording
Deposits. Total deposits increased $36.3 million, or 0.6%, to $5.71 billion at December 31, 2025 from $5.68 billion at June 30, 2025. Included in total deposits are retail and brokered time deposits of $1.18 billion and $757.4 million, respectively, at December 31, 2025, and $1.22 billion and $757.7 million, respectively, at June 30, 2025. The increase in non-interest bearing demand deposits was largely the result of migrating $69.8 million from a consumer interest bearing product to a non-interest bearing product as part of our repricing strategy. The following table sets forth the distribution of, and changes in, deposits, by type, for the periods indicated:
Previous wording
Uninsured deposits totaled $2.04 billion as of September 30, 2025 compared to $1.99 billion as of June 30, 2025. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, uninsured deposits totaled $804.2 million, or 14.3% of total deposits, at September 30, 2025 compared to $813.8 million, or 14.3% of total deposits, at June 30, 2025.
Current wording
Uninsured deposits totaled $2.16 billion as of December 31, 2025 compared to $1.99 billion as of June 30, 2025. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, uninsured deposits totaled $801.0 million, or 14.0% of total deposits, at December 31, 2025 compared to $813.8 million, or 14.3% of total deposits, at June 30, 2025.
Previous wording
Borrowings. The balance of borrowings decreased by $50.0 million to $1.21 billion at September 30, 2025 from $1.26 billion at June 30, 2025, reflecting reductions in FHLB advances.
Current wording
Borrowings. The balance of borrowings decreased by $161.5 million to $1.10 billion at December 31, 2025 from $1.26 billion at June 30, 2025, reflecting reductions in FHLB advances.
Previous wording
At September 30, 2025, we maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.54 billion, representing 33.2% of total assets.
Current wording
At December 31, 2025, we maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.70 billion, representing 35.4% of total assets.
Previous wording
Other Liabilities. The balance of other liabilities, including advance payments by borrowers for taxes and other miscellaneous liabilities, decreased $6.4 million to $56.4 million at September 30, 2025 from $62.8 million at June 30, 2025. The change in the balance of these other liabilities generally reflected normal operating fluctuations during the period.
Current wording
Other Liabilities. The balance of other liabilities, including advance payments by borrowers for taxes and other miscellaneous liabilities, decreased $5.8 million to $56.9 million at December 31, 2025 from $62.8 million at June 30, 2025. The change in the balance of these other liabilities generally reflected normal operating fluctuations during the period.
Previous wording
Stockholders’ Equity. Stockholders’ equity increased $7.2 million to $753.2 million at September 30, 2025 from $746.0 million at June 30, 2025. The increase in stockholders’ equity during the three months ended September 30, 2025 largely reflected net income of $9.5 million and an other comprehensive gain of $4.3 million, partially offset by cash dividends of $7.0 million. The other comprehensive gain for the three months ended September 30, 2025 was driven by an increase in the fair value of our available for sale securities, partially offset by a decrease in the fair value of our derivatives portfolio.
Current wording
Stockholders’ Equity. Stockholders’ equity increased $11.4 million to $757.4 million at December 31, 2025 from $746.0 million at June 30, 2025. The increase in stockholders’ equity during the six months ended December 31, 2025 largely reflected net income of $19.0 million and other comprehensive income of $5.0 million, partially offset by cash dividends of $14.0 million. The other comprehensive income for the six months ended December 31, 2025 was driven by an increase in the fair value of our available for sale securities, partially offset by a decrease in the fair value of our derivatives portfolio.
Previous wording
Book value per share increased by $0.08 to $11.63 at September 30, 2025 while tangible book value per share increased by $0.09 to $9.86 at September 30, 2025. These increases were driven by the increases in stockholders’ equity, as described above.
Current wording
At December 31, 2025, book value per share increased by $0.15 to $11.70, while tangible book value per share increased by $0.16 to $9.93. These increases were driven by the increases in stockholders’ equity, as described above.
Previous wording
Net Income. Net income for the quarter ended September 30, 2025 was $9.5 million, or $0.15 per diluted share, compared to $6.1 million, or $0.10 per diluted share, for the quarter ended September 30, 2024. The increase in net income reflected increases in net interest income and non-interest income, partially offset by increases in non-interest expense and income taxes.
Current wording
Net Income. Net income for the quarter ended December 31, 2025 was $9.4 million, or $0.15 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024. The increase in net income reflected increases in net interest income and non-interest income, partially offset by increases in non-interest expense and income taxes.
Previous wording
Net Interest Income. Net interest income increased by $5.3 million to $37.7 million for the quarter ended September 30, 2025 compared to $32.4 million for the quarter ended September 30, 2024. The increase between the comparative periods resulted from a decrease of $6.0 million in interest expense, partially offset by a decrease of $744,000 in interest income. Included in net interest income for the quarters ended September 30, 2025 and 2024, respectively, was purchase accounting accretion of $601,000 and $649,000, and loan prepayment penalty income of $490,000 and $52,000.
Current wording
Net Interest Income. Net interest income increased by $5.4 million to $38.0 million for the quarter ended December 31, 2025 compared to $32.6 million for the quarter ended December 31, 2024. The increase between the comparative periods resulted from a decrease of $6.2 million in interest expense, partially offset by a decrease of $833,000 in interest income. Included in net interest income for the quarters ended December 31, 2025 and 2024, respectively, was purchase accounting accretion of $494,000 and $685,000, and loan prepayment penalty income of $544,000 and $288,000.
Previous wording
Net interest margin increased 30 basis point to 2.10% for the quarter ended September 30, 2025, from 1.80% for the quarter ended September 30, 2024 reflecting a decrease in the average balance of interest-bearing borrowings, a decrease in the cost of interest-bearing liabilities and higher average balances and yields on loans receivable, partially offset by a decrease in the average balances and yields on other interest-earning assets.
Current wording
Net interest margin increased 32 basis points to 2.14% for the quarter ended December 31, 2025, from 1.82% for the quarter ended December 31, 2024 reflecting a decrease in the cost of interest-bearing liabilities, a decrease in the average balance of interest-bearing borrowings and higher average balances and yields on loans receivable, partially offset by a decrease in the average balances and yields on taxable investment securities and other interest-earning assets.
Previous wording
(4)Includes average balances of non-interest-bearing deposits of $581.6 million and $599.1 million for the quarter ended September 30, 2025 and 2024, respectively.
Current wording
(4)Includes average balances of non-interest-bearing deposits of $595.0 million and $604.9 million for the quarter ended December 31, 2025 and 2024, respectively.
Previous wording
Provision for Credit Losses. For the quarter ended September 30, 2025, we recorded a reversal of credit losses of $82,000, compared to a provision for credit losses of $108,000 for the quarter ended September 30, 2024. The reversal for the quarter ended September 30, 2025 was largely driven by decreases in the balance of loans receivable, partially offset by qualitative risk factor adjustments. By comparison, the provision for credit losses for the quarter ended September 30, 2024 was primarily driven by loan growth.
Current wording
Provision for Credit Losses. The provision for credit losses increased $460,000 to $567,000 for the quarter ended December 31, 2025, compared to $107,000 for the quarter ended December 31, 2024. The provision for the quarter ended December 31, 2025 was primarily driven by quantitative risk-factor adjustments and individually evaluated reserves associated with one non-performing C&I loan that was fully charged off during the quarter, partially offset by a decrease in the balance of loans receivable. By comparison, the provision for credit losses for the quarter ended December 31, 2024 was primarily driven by loan growth.
Previous wording
Non-Interest Income. Total non-interest income increased $1.2 million to $5.8 million for the quarter ended September 30, 2025, compared to $4.6 million for the quarter ended September 30, 2024.
Current wording
Non-Interest Income. Total non-interest income increased $698,000 to $5.6 million for the quarter ended December 31, 2025, compared to $4.9 million for the quarter ended December 31, 2024.
Previous wording
Fees and service charges increased $257,000 to $892,000 for the quarter ended September 30, 2025, from $635,000 for the quarter ended September 30, 2024, primarily reflecting higher deposit and branch related fee income.
Current wording
Fees and service charges increased $668,000 to $1.3 million for the quarter ended December 31, 2025, from $627,000 for the quarter ended December 31, 2024, primarily reflecting $270,000 of higher deposit and branch related fee income, and higher loan related fee income of $245,000 associated with the payoff of a single construction loan.
Previous wording
Non-Interest Expense. Total non-interest expense increased $1.9 million to $31.7 million for the quarter ending September 30, 2025, compared to $29.8 million the quarter ended September 30, 2024.
Current wording
Non-Interest Expense. Total non-interest expense increased $1.6 million to $31.2 million for the quarter ending December 31, 2025, compared to $29.6 million the quarter ended December 31, 2024.
Previous wording
Salaries and employee benefits increased $1.2 million to $18.7 million for the quarter ended September 30, 2025, from $17.5 million for the quarter ended September 30, 2024. This increase was primarily driven by higher salary expense and payroll taxes due to annual merit increases and increases in incentive and stock-based compensation due to the absence of a non-recurring decrease in stock-based compensation recorded in the prior period.
Current wording
Salaries and employee benefits increased $794,000 to $18.4 million for the quarter ended December 31, 2025, from $17.6 million for the quarter ended December 31, 2024. This increase was primarily driven by higher salary expense due to annual merit increases and an increase in incentive compensation.
Previous wording
Advertising and marketing expense increased $220,000 to $562,000 for the quarter ended September 30, 2025, from $342,000 for the quarter ended September 30, 2024. The increase primarily reflects normal fluctuations in the timing of campaigns across various advertising formats supporting our loan and deposit growth initiatives.
Current wording
Advertising and marketing expense increased $101,000 to $412,000 for the quarter ended December 31, 2025, from $311,000 for the quarter ended December 31, 2024. The increase primarily reflects normal fluctuations in the timing of campaigns across various advertising formats supporting our loan and deposit growth initiatives.
Previous wording
Equipment and systems expense increased $114,000 to $4.0 million for the quarter ended September 30, 2025, from $3.9 million for the quarter ended September 30, 2024, largely driven by increases in technology expense associated with the Company’s ongoing digital banking initiatives.
Current wording
Equipment and systems expense increased $115,000 to $4.0 million for the quarter ended December 31, 2025, from $3.9 million for the quarter ended December 31, 2024, largely driven by increases in technology expense associated with the Company’s ongoing digital banking initiatives.
Previous wording
FDIC insurance premiums decreased $262,000 to $1.3 million for the quarter ended September 30, 2025, from $1.6 million for the quarter ended September 30, 2024, primarily driven by higher capital ratios.
Current wording
FDIC insurance premiums decreased $146,000 to $1.4 million for the quarter ended December 31, 2025, from $1.5 million for the quarter ended December 31, 2024, primarily driven by higher capital ratios.
Previous wording
Provision for Income Taxes. Provision for income taxes increased $1.4 million to $2.5 million for the quarter ended September 30, 2025 from $1.1 million for the quarter ended September 30, 2024, reflecting a higher level of pre-tax income compared to the prior year period.
Current wording
Provision for Income Taxes. Provision for income taxes increased $1.1 million to $2.3 million for the quarter ended December 31, 2025 from $1.3 million for the quarter ended December 31, 2024, reflecting a higher level of pre-tax income compared to the prior year period.
Previous wording
Effective tax rates for the quarter ended September 30, 2025 and 2024 were 20.6% and 15.1%, respectively. The increase in the effective tax rate was primarily due to higher full year projected taxable income.
Current wording
Effective tax rates for the quarter ended December 31, 2025 and 2024 were 19.8% and 16.0%, respectively. The increase in the effective tax rate was primarily due to higher full year projected taxable income.
Previous wording
Other income increased $818,000 to $1.7 million for the quarter ended September 30, 2025, from $833,000 for the quarter ended September 30, 2024, primarily driven by a non-recurring pre-tax gain of $749,000 on the sale of property held for sale in the current period.
Current wording
Other income increased $857,000 to $2.5 million for the six months ended December 31, 2025, compared to $1.7 million for the six months ended December 31, 2024, primarily driven by a non-recurring pre-tax gain of $749,000 on the sale of property held for sale in the current period.
Previous wording
Net occupancy expense of premises increased $509,000 to $3.3 million for the quarter ended September 30, 2025, from $2.8 million for the quarter ended September 30, 2024. This increase was primarily driven by a non-recurring pre-tax expense of $250,000 associated with the consolidation of three branches and non-recurring branch maintenance expenses of $102,000 in the current period.
Current wording
Net occupancy expense of premises increased $566,000 to $6.2 million for the six months ended December 31, 2025, from $5.6 million for the six months ended December 31, 2024. This increase was primarily driven by a non-recurring pre-tax expense of $250,000 associated with the consolidation of three branches, non-recurring branch maintenance expenses of $102,000, and higher snow removal expenses.
Previous wording
At September 30, 2025, liquidity included $130.1 million of short-term cash and cash equivalents and $1.02 billion of investment securities available for sale. As of September 30, 2025, we had the capacity to borrow additional cash funds totaling $1.98 billion, comprised of $1.23 billion and $745.8 million from the Federal Reserve discount window and the FHLBNY, respectively, without pledging additional collateral. We had the ability to pledge additional securities to borrow an additional $566.8 million at September 30, 2025. As of that same date, we also had access to unsecured overnight borrowings with other financial institutions totaling $845.0 million, of which none was outstanding.
Current wording
At December 31, 2025, liquidity included $147.3 million of short-term cash and cash equivalents and $1.00 billion of investment securities available for sale. As of December 31, 2025, we had the capacity to borrow additional cash funds totaling $1.98 billion, comprised of $1.33 billion and $650.0 million from the Federal Reserve discount window and the FHLBNY, respectively, without pledging additional collateral. We had the ability to pledge additional securities to borrow an additional $719.0 million at December 31, 2025. As of that same date, we also had access to unsecured overnight borrowings with other financial institutions totaling $835.0 million, of which none was outstanding.
Previous wording
At September 30, 2025, we had outstanding commitments to originate and purchase loans totaling $72.1 million while such commitments totaled $26.4 million at June 30, 2025. As of those same dates, our pipeline of loans held for sale included $21.4 million and $11.1 million, respectively, of loans in process whose terms included interest rate locks to borrowers that were paired with a best-efforts commitment to sell the loan to a buyer at a fixed price and within a predetermined timeframe after the sale commitment is established.
Current wording
At December 31, 2025, we had outstanding commitments to originate and purchase loans totaling $42.5 million while such commitments totaled $26.4 million at June 30, 2025. As of those same dates, our pipeline of loans held for sale included $8.5 million and $11.1 million, respectively, of loans in process whose terms included interest rate locks to borrowers that were paired with a best-efforts commitment to sell the loan to a buyer at a fixed price and within a predetermined timeframe after the sale commitment is established.
Previous wording
Construction loans in process and unused lines of credit were $137.4 million and $177.3 million, respectively, at September 30, 2025, compared to $115.7 million and $177.1 million, respectively, at June 30, 2025. We are also subject to the contingent liabilities resulting from letters of credit totaling $595,000 at September 30, 2025 and June 30, 2025, respectively.
Current wording
Construction loans in process and unused lines of credit were $162.0 million and $183.2 million, respectively, at December 31, 2025, compared to $115.7 million and $177.1 million, respectively, at June 30, 2025. We are also subject to the contingent liabilities resulting from letters of credit totaling $160,000 at December 31, 2025 and June 30, 2025, respectively.
Rearranged current paragraphs (17)
Current report — wording carried from elsewhere
Net occupancy expense of premises increased $57,000 to $2.9 million for the quarter ended December 31, 2025, from $2.8 million for the quarter ended December 31, 2024. This increase was primarily driven by higher snow removal expenses.
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended December 31, 2025 and December 31, 2024
Current report — wording carried from elsewhere
Net Income. Net income for the six months ended December 31, 2025 was $19.0 million, or $0.30 per diluted share, compared to $12.7 million, or $0.20 per diluted share, for the six months ended December 31, 2024. The increase in net income primarily reflected increases in net interest income and non-interest income, partially offset by increases in non-interest expense, the provision for credit losses and income tax expense.
Current report — wording carried from elsewhere
Net Interest Income. Net interest income increased by $10.6 million to $75.7 million for the six months ended December 31, 2025 compared to $65.1 million for the six months ended December 31, 2024. The increase between the comparative periods resulted from a decrease of $12.2 million in interest expense, partially offset by a decrease of $1.6 million in interest income. Included in net interest income for the six months ended December 31, 2025 and 2024, respectively, was purchase accounting accretion of $1.1 million and $1.3 million, and loan prepayment penalty income of $1.0 million and $340,000.
Current report — wording carried from elsewhere
Details regarding the composition of, and changes to, net interest income are presented in the table below which reflects the components of the average balance sheet and of net interest income for the periods indicated. We derived the average yields and costs by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented with daily balances used to derive average balances. No tax equivalent adjustments have been made to yield or costs. Non-accrual loans were included in the calculation of average balances, however interest receivable on these loans has been fully reserved for and therefore not included in interest income. The yields and costs set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.
Current report — wording carried from elsewhere
(1)Loans held-for-sale and non-accruing loans have been included in loans receivable and the effect of such inclusion was not material. Allowance for credit losses has been included in non-interest-earning assets.
Current report — wording carried from elsewhere
(2)Fair value adjustments have been excluded in the balances of interest-earning assets.
Current report — wording carried from elsewhere
(3)Includes interest-bearing deposits at other banks and FHLB of New York capital stock.
Current report — wording carried from elsewhere
(5)Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
Current report — wording carried from elsewhere
(6)Net interest margin represents net interest income as a percentage of average interest-earning assets.
Current report — wording carried from elsewhere
Additional information regarding the ACL and the associated provisions recognized during the six months ended December 31, 2025 and 2024 is presented in Note 6 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at December 31, 2025 and June 30, 2025.
Current report — wording carried from elsewhere
The remaining changes in the other components of non-interest income between comparative periods generally reflected normal operating fluctuations within those line items.
Current report — wording carried from elsewhere
Equipment and systems expense increased $229,000 to $8.0 million for the six months ended December 31, 2025, from $7.8 million for the six months ended December 31, 2024, largely attributable to increases in technology expense associated with the Company's ongoing digital banking initiatives.
Current report — wording carried from elsewhere
Advertising and marketing expense increased $321,000 to $1.0 million for the six months ended December 31, 2025, from $653,000 for the six months ended December 31, 2024. This increase primarily reflects normal fluctuations in the timing of campaigns across various advertising formats supporting our loan and deposit growth initiatives.
Current report — wording carried from elsewhere
The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
Current report — wording carried from elsewhere
Provision for Income Taxes. Provision for income taxes increased $2.5 million to $4.8 million for the six months ended December 31, 2025 from $2.3 million for the six months ended December 31, 2024, reflecting a higher level of pre-tax income compared to the prior year period.
Current report — wording carried from elsewhere
Effective tax rates for the six months ended December 31, 2025 and 2024 were 20.2% and 15.6%, respectively. The increase in the effective tax rate was primarily due to higher full year projected taxable income.