Kearny Financial Corp.
For the period ended Sep 30, 2026. Filed Nov 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.
Sep 30, 2026 · Filed Nov 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 2026-03-31; filed 2026-05-07.
0001617242-26-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001617242-26-000033
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 98 previous paragraphs and 71 current paragraphs.
34 unchanged; 31 reworded; 6 added; 20 removed; 13 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 8 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 (6)
Current report
Executive Summary. Total assets increased $95.7 million to $7.78 billion at September 30, 2026 from $7.68 billion at June 30, 2026. The increase primarily reflected increases in net loans receivable and other assets.
Current report
For the three months ended September 30, 2026, commercial loan origination volume totaled $167.2 million, consisting of $79.6 million of commercial mortgage loan originations, $37.1 million of commercial and industrial (“C&I”) loan originations and $50.6 million of construction loan disbursements. One- to four-family residential mortgage loan originations, excluding loans held-for-sale, totaled $66.5 million, while home equity loan and line of credit originations totaled $12.0 million. In addition, we purchased $75.1 million of other consumer loans and $14.0 million of C&I loans during the quarter.
Current report
Net interest margin increased 13 basis points to 2.23% for the quarter ended September 30, 2026, from 2.10% for the quarter ended September 30, 2025 reflecting higher average balances and yields on loans receivable and lower average balances of interest-bearing liabilities resulting from a reduction in wholesale funding. These benefits were partially offset by higher costs of interest-bearing liabilities, driven by the repricing of our final remaining COVID-era wholesale funding position, and lower average balances and yields on other interest-earning assets.
Current report
Non-Interest Income. Total non-interest income decreased $644,000 to $5.2 million for the quarter ended September 30, 2026, compared to $5.8 million for the quarter ended September 30, 2025. The decrease was primarily attributable to lower other income, partially offset by higher fees and service charges, as discussed below. Non-interest income in the current period also included a non-recurring write-down of $122,000 on one other real estate owned property resulting from an updated appraisal.
Current report
Equipment and systems expense decreased $249,000 to $3.7 million for the quarter ended September 30, 2026, from $4.0 million for the quarter ended September 30, 2025, primarily driven by lower third-party core processing service fees.
Current report
Advertising and marketing expense decreased $181,000 to $381,000 for the quarter ended September 30, 2026, from $562,000 for the quarter ended September 30, 2025, primarily driven by lower advertising expenses from the timing of seasonal campaigns.
Removed paragraphs (20)
Previous report
Executive Summary. Total assets decreased $132.8 million to $7.61 billion at March 31, 2026 from $7.74 billion at June 30, 2025. The decrease primarily reflected decreases in net loans receivable, cash and cash equivalents, and investment securities.
Previous report
Commercial loan origination volume for the nine months ended March 31, 2026 totaled $284.2 million, comprised of $107.8 million of commercial mortgage loan originations, $90.5 million of commercial business loan originations and construction loan disbursements of $86.0 million. Purchases of commercial business loans totaled $68.7 million for the same period.
Previous report
One- to four-family residential mortgage loan origination volume, excluding loans held-for-sale, totaled $90.5 million for the nine months ended March 31, 2026. Purchases of residential mortgage loans totaled $36.3 million for the same period. Home equity loan and line of credit origination volume for the same period totaled $29.4 million.
Previous report
Net interest margin increased 31 basis points to 2.21% for the quarter ended March 31, 2026, from 1.90% for the quarter ended March 31, 2025 reflecting a decrease in the cost and average balances of interest-bearing liabilities and higher average yields on loans receivable, partially offset by a decrease in the average balances of interest-earning assets.
Previous report
Non-Interest Income. Total non-interest income increased $1.5 million to $6.1 million for the quarter ended March 31, 2026, compared to $4.6 million for the quarter ended March 31, 2025.
Previous report
Net occupancy expense of premises increased $188,000 to $3.3 million for the quarter ended March 31, 2026, from $3.1 million for the quarter ended March 31, 2025. This increase was primarily driven by $118,000 of higher snow removal expenses.
Previous report
FDIC insurance premiums decreased $148,000 to $1.3 million for the quarter ended March 31, 2026, from $1.5 million for the quarter ended March 31, 2025, primarily driven by higher capital ratios.
Previous report
Net Income. Net income for the nine months ended March 31, 2026 was $29.1 million, or $0.46 per diluted share, compared to $19.3 million, or $0.31 per diluted share, for the nine months ended March 31, 2025. The increase in net income primarily reflected increases in net interest income and non-interest income, partially offset by increases in non-interest expense, income tax expense and the provision for credit losses.
Previous report
Net interest margin increased 31 basis points to 2.15% for the nine months ended March 31, 2026, from 1.84% for the nine months ended March 31, 2025 and reflected a decrease in the cost of interest-bearing liabilities, a decrease in the average balance of borrowings and an increase in the average balance and yields of loans receivable, partially offset by decreases in the average balances of investment securities and other interest-earning assets.
Previous report
(4)Includes average balances of non-interest-bearing deposits of $603.2 million and $602.2 million for the nine months ended March 31, 2026 and 2025, respectively.
Previous report
Provision for Credit Losses. The provision for credit losses increased $295,000 to $876,000 for the nine months ended March 31, 2026, compared to $581,000 for the nine months ended March 31, 2025. The provision for the nine months ended March 31, 2026 was primarily driven by quantitative risk-factor adjustments and higher reserves on individually evaluated loans, including one non-performing C&I loan that was fully charged off during the period. By comparison, the provision for credit losses for the nine months ended March 31, 2025 was primarily driven by charge-offs and loan growth.
Previous report
Non-Interest Income. Total non-interest income increased $3.5 million to $17.5 million for the nine months ended March 31, 2026, compared to $14.1 million for the nine months ended March 31, 2025.
Previous report
Fees and service charges increased $1.3 million to $3.1 million for the nine months ended March 31, 2026, compared to $1.8 million for the nine months ended March 31, 2025, primarily reflecting $739,000 of higher deposit and branch related fee income, and higher loan related fee income of $535,000.
Previous report
Other income increased $2.0 million to $4.5 million for the nine months ended March 31, 2026, compared to $2.5 million for the nine months ended March 31, 2025, primarily driven by non-recurring pre-tax gains of $1.8 million on the sale of three former branch locations held for sale.
Previous report
Non-Interest Expense. Total non-interest expense increased $5.4 million to $95.2 million for the nine months ended March 31, 2026, compared to $89.7 million for the nine months ended March 31, 2025.
Previous report
Salaries and employee benefits increased $3.7 million to $56.4 million for the nine months ended March 31, 2026, compared to $52.8 million for the nine months ended March 31, 2025. This increase was primarily driven by higher salary expense and payroll taxes from annual merit increases, an increase in incentive compensation, a non-recurring severance charge of $205,000 recorded in the current period, and the absence of a $427,000 non-recurring decrease in stock-based compensation recorded in the prior year period.
Previous report
Equipment and systems expense increased $283,000 to $12.0 million for the nine months ended March 31, 2026, from $11.7 million for the nine months ended March 31, 2025, largely attributable to increases in technology expense associated with the Company's ongoing digital banking initiatives.
Previous report
Advertising and marketing expense increased $377,000 to $1.6 million for the nine months ended March 31, 2026, from $1.3 million for the nine months ended March 31, 2025. This increase primarily reflects normal fluctuations in the timing of campaigns across various advertising formats supporting our loan and deposit growth initiatives.
Previous report
FDIC insurance premiums decreased $556,000 to $4.0 million for the nine months ended March 31, 2026, from $4.5 million for the nine months ended March 31, 2025, primarily driven by higher capital ratios.
Previous report
Other non-interest expense increased $1.0 million to $10.8 million for the nine months ended March 31, 2026, compared to $9.8 million for the nine months ended March 31, 2025, 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 other professional fee and loan related expenses.
Reworded paragraphs (31)
Previous wording
Investment Securities. Investment securities available for sale decreased $29.6 million to $983.3 million at March 31, 2026, from $1.01 billion at June 30, 2025. This decrease was driven by principal repayments of $243.2 million, partially offset by purchases of $198.1 million and a $15.3 million increase in the fair value of the portfolio to a net unrealized loss of $96.8 million.
Current wording
Investment Securities. Investment securities available for sale decreased $32.4 million to $932.0 million at September 30, 2026, from $964.4 million at June 30, 2026. This decrease was largely the result of principal repayments of $62.3 million and a $31.2 million decrease in the fair value of the portfolio, partially offset by purchases of $61.0 million.
Previous wording
Investment securities held to maturity decreased $9.6 million to $110.6 million at March 31, 2026 from $120.2 million at June 30, 2025. This decrease was driven by principal repayments of $9.7 million.
Current wording
Investment securities held to maturity decreased $2.6 million to $104.2 million at September 30, 2026 from $106.8 million at June 30, 2026, due to principal repayments.
Previous wording
Loans Held-for-Sale. Loans held-for-sale totaled $12.2 million at March 31, 2026 as compared to $5.9 million at June 30, 2025 and are reported separately from the balance of net loans receivable. During the nine months ended March 31, 2026, we sold $86.1 million of residential mortgage loans, resulting in a gain on sale of $616,000.
Current wording
Loans Held-for-Sale. Loans held-for-sale totaled $4.8 million at September 30, 2026 as compared to $6.0 million at June 30, 2026 and are reported separately from the balance of net loans receivable. Loans held-for-sale consisted of residential mortgage loans in both respective periods. During the three months ended September 30, 2026, we sold $28.0 million of residential mortgage loans, resulting in a gain on sale of $217,000.
Previous wording
Net Loans Receivable. Net loans receivable decreased $32.3 million, or 0.6%, to $5.73 billion at March 31, 2026 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 increased $104.5 million, or 1.8%, to $5.93 billion at September 30, 2026 from $5.83 billion at June 30, 2026. Details regarding the change in the loan portfolio, by loan segment, are presented below:
Previous wording
(1)At March 31, 2026 and June 30, 2025, nonresidential mortgage includes $920,630 and $891,995, respectively, of non-owner occupied commercial real estate (“CRE”) loans with an LTV of 53% in each period, and includes $91,792 and $94,561, respectively, of owner occupied CRE loans with an LTV of 47% and 48%, respectively.
Current wording
(1)At September 30, 2026 and June 30, 2026, nonresidential mortgage includes $946,596 and $925,996, respectively, of non-owner occupied commercial real estate (“CRE”) loans with an LTV of 54% and 53%, and includes $102,712 and $93,449, respectively, of owner occupied CRE loans with an LTV of 48% and 49%, respectively.
Previous wording
Nonperforming Assets. 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, 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 wording
Nonperforming Assets. Nonperforming assets increased $3.1 million to $56.6 million, or 0.73% of total assets, at September 30, 2026, from $53.4 million, or 0.70% of total assets, at June 30, 2026. The increase in nonperforming assets was largely attributable to an increase in nonperforming multi-family mortgage loans.
Previous wording
Allowance for Credit Losses (“ACL”). At March 31, 2026 the ACL totaled $44.7 million, or 0.77% of total loans, compared to $46.2 million, or 0.79% of total loans, at June 30, 2025. The decrease for the nine months ended March 31, 2026 was largely attributable to net charge-offs of $2.3 million, partially offset by a provision for credit losses of $876,000.
Current wording
Allowance for Credit Losses (“ACL”). The ACL increased to $46.0 million at September 30, 2026 from $45.5 million at June 30, 2026, primarily driven by a provision for credit losses of $830,000, partially offset by net charge-offs of $277,000. The ACL represented 0.77% of total loans at both September 30, 2026 and June 30, 2026.
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 $24.0 million to $643.3 million at March 31, 2026 from $667.3 million at June 30, 2025. The decrease in the balance of these other assets during the nine months ended March 31, 2026 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, increased $26.4 million to $686.7 million at September 30, 2026 from $660.3 million at June 30, 2026. The increase in the balances of these other assets primarily reflected increases in the market value of interest rate derivatives, deferred income taxes, accrued interest receivable and BOLI. The remaining change generally reflected normal operating fluctuations within these line items.
Previous wording
Deposits. Total deposits increased $53.9 million, or 0.9%, to $5.73 billion at March 31, 2026 from $5.68 billion at June 30, 2025. Included in total deposits are retail and brokered time deposits of $1.20 billion and $757.2 million, respectively, at March 31, 2026, 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:
Current wording
Deposits. Total deposits increased $123.9 million, or 2.2%, to $5.83 billion at September 30, 2026 from $5.71 billion at June 30, 2026, primarily driven by growth in interest-bearing demand deposits. Included in total deposits are brokered certificates of deposit (“CDs”) of $755.3 million and $757.2 million, respectively. The following table sets forth the distribution of, and changes in, deposits, by type, for the periods indicated:
Previous wording
Uninsured deposits totaled $2.20 billion as of March 31, 2026 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 $839.0 million, or 14.7% of total deposits, at March 31, 2026 compared to $813.8 million, or 14.3% of total deposits, at June 30, 2025.
Current wording
Uninsured deposits totaled $2.39 billion as of September 30, 2026 compared to $2.25 billion as of June 30, 2026. Excluding collateralized deposits of state and local governments, and deposits of the Bank’s wholly-owned subsidiary and holding company, uninsured deposits totaled $858.4 million, or 14.7% of total deposits, at September 30, 2026 compared to $851.0 million, or 14.9% of total deposits, at June 30, 2026.
Previous wording
Borrowings. The balance of borrowings decreased by $196.5 million to $1.06 billion at March 31, 2026 from $1.26 billion at June 30, 2025, reflecting reductions in FHLB advances.
Current wording
Borrowings. The balance of borrowings decreased by $15.0 million to $1.14 billion at September 30, 2026 from $1.15 billion at June 30, 2026, reflecting reductions in overnight borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.
Previous wording
At March 31, 2026, we maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.45 billion, representing 32.2% of total assets.
Current wording
At September 30, 2026, we maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.21 billion, representing 28.5% of total assets.
Previous wording
Other Liabilities. The balance of other liabilities, including advance payments by borrowers for taxes and other miscellaneous liabilities, decreased $7.2 million to $55.5 million at March 31, 2026 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 $2.4 million to $53.5 million at September 30, 2026 from $55.9 million at June 30, 2026. The change in the balance of these other liabilities generally reflected normal operating fluctuations during the period.
Previous wording
Stockholders’ Equity. Stockholders’ equity increased $17.1 million to $763.0 million at March 31, 2026 from $746.0 million at June 30, 2025. The increase in stockholders’ equity during the nine months ended March 31, 2026 largely reflected net income of $29.1 million and other comprehensive income of $6.6 million, partially offset by cash dividends of $21.0 million. The other comprehensive income for the nine months ended March 31, 2026 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 decreased $10.8 million to $755.9 million at September 30, 2026 from $766.7 million at June 30, 2026. The decrease in stockholders’ equity during the three months ended September 30, 2026 largely reflected an other comprehensive loss of $13.8 million and cash dividends of $7.0 million, partially offset by net income of $10.0 million. The other comprehensive loss for the three months ended September 30, 2026 was driven by a decrease in the fair value of our available for sale securities, partially offset by an increase in the fair value of our derivatives portfolio.
Previous wording
At March 31, 2026, book value per share increased by $0.24 to $11.79, while tangible book value per share increased by $0.25 to $10.02. These increases were driven by the increases in stockholders’ equity, as described above.
Current wording
At September 30, 2026, book value per share decreased by $0.20 to $11.64, while tangible book value per share decreased by $0.19 to $9.88. These decreases were driven by the decrease in stockholders’ equity, as described above.
Previous wording
Net Income. Net income for the quarter ended March 31, 2026 was $10.1 million, or $0.16 per diluted share, compared to $6.6 million, or $0.11 per diluted share, for the quarter ended March 31, 2025. 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 September 30, 2026 was $10.0 million, or $0.16 per diluted share, compared to $9.5 million, or $0.15 per diluted share, for the quarter ended September 30, 2025. The increase in net income was primarily driven by higher net interest income, partially offset by an increase in the provision for credit losses driven by loan growth, and a decrease in non-interest income.
Previous wording
Net Interest Income. Net interest income increased by $5.2 million to $39.2 million for the quarter ended March 31, 2026 compared to $34.0 million for the quarter ended March 31, 2025. The increase between the comparative periods resulted from a decrease of $5.4 million in interest expense, partially offset by a decrease of $165,000 in interest income. Included in net interest income for the quarters ended March 31, 2026 and 2025, respectively, was purchase accounting accretion of $552,000 and $511,000, and loan prepayment penalty income of $422,000 and $226,000.
Current wording
Net Interest Income. Net interest income increased by $2.4 million to $40.1 million for the quarter ended September 30, 2026 compared to $37.7 million for the quarter ended September 30, 2025. The increase between the comparative periods resulted from an increase of $1.7 million in interest income and a decrease of $654,000 in interest expense. Included in net interest income for the quarters ended September 30, 2026 and 2025, respectively, was purchase accounting accretion of $396,000 and $601,000, and loan prepayment penalty income of $336,000 and $490,000.
Previous wording
(4)Includes average balances of non-interest-bearing deposits of $633.5 million and $602.6 million for the quarter ended March 31, 2026 and 2025, respectively.
Current wording
(4)Includes average balances of non-interest-bearing deposits of $796.2 million and $581.6 million for the quarter ended September 30, 2026 and 2025, respectively.
Previous wording
Provision for Credit Losses. The provision for credit losses increased $25,000 to $391,000 for the quarter ended March 31, 2026, compared to $366,000 for the quarter ended March 31, 2025. The provision for the quarter ended March 31, 2026 was primarily driven by loan growth and charge-offs associated with certain individually evaluated loans, partially offset by quantitative risk factor adjustments. By comparison, the provision for credit losses for the quarter ended March 31, 2025 was primarily driven by loan charge-offs.
Current wording
Provision for Credit Losses. The provision for credit losses increased $912,000 to $830,000 for the quarter ended September 30, 2026, compared to an $82,000 reversal for the quarter ended September 30, 2025. The provision for the quarter ended September 30, 2026 was primarily driven by loan growth. By comparison, 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.
Previous wording
Fees and service charges increased $349,000 to $922,000 for the quarter ended March 31, 2026, from $573,000 for the quarter ended March 31, 2025, primarily reflecting $252,000 of higher deposit and branch related fee income, and higher loan related fee income of $97,000.
Current wording
Fees and service charges increased $130,000 to $1.0 million for the quarter ended September 30, 2026, from $892,000 for the quarter ended September 30, 2025, primarily reflecting higher loan related fee income of $115,000.
Previous wording
Other income increased $1.1 million to $1.9 million for the quarter ended March 31, 2026, from $869,000 for the quarter ended March 31, 2025, primarily driven by a non-recurring pre-tax gain of $1.0 million on the sale of two former branch locations held for sale in the current period.
Current wording
Other income decreased $785,000 to $866,000 for the quarter ended September 30, 2026, from $1.7 million for the quarter ended September 30, 2025, primarily driven by the absence of a non-recurring pre-tax gain of $749,000 on the sale of property held for sale in the prior period.
Previous wording
Non-Interest Expense. Total non-interest expense increased $1.9 million to $32.3 million for the quarter ending March 31, 2026, compared to $30.4 million the quarter ended March 31, 2025.
Current wording
Non-Interest Expense. Total non-interest expense increased $121,000 to $31.8 million for the quarter ended September 30, 2026, compared to $31.7 million for the quarter ended September 30, 2025.
Previous wording
Salaries and employee benefits increased $1.6 million to $19.3 million for the quarter ended March 31, 2026, from $17.7 million for the quarter ended March 31, 2025. This increase was primarily driven by higher salary expense due to annual merit increases, a non-recurring severance charge of $205,000 recorded in the current period, and the absence of a $427,000 non-recurring decrease in stock-based compensation recorded in the prior year period.
Current wording
Salaries and employee benefits increased $685,000 to $19.4 million for the quarter ended September 30, 2026, from $18.7 million for the quarter ended September 30, 2025. This increase was primarily driven by higher salary expense due to annual merit increases and higher incentive compensation.
Previous wording
Net occupancy expense of premises increased $754,000 to $9.5 million for the nine months ended March 31, 2026, from $8.7 million for the nine months ended March 31, 2025. 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 of $210,000.
Current wording
Net occupancy expense of premises decreased $522,000 to $2.8 million for the quarter ended September 30, 2026, from $3.3 million for the quarter ended September 30, 2025. This decrease was primarily driven by the absence of a non-recurring pre-tax expense of $250,000 associated with the consolidation of three branch locations, and non-recurring branch maintenance expenses of $102,000, both of which were recorded in the prior period.
Previous wording
Other non-interest expense increased $162,000 to $3.5 million for the quarter ended March 31, 2026, from $3.3 million for the quarter ended March 31, 2025, primarily driven by higher professional fees and loan related legal expenses, partially offset by a decline in fraud losses.
Current wording
Other non-interest expense increased $238,000 to $3.7 million for the quarter ended September 30, 2026, from $3.5 million for the quarter ended September 30, 2025, primarily driven by other real estate owned expenses, higher professional fees and loan related expenses, partially offset by a decline in bad debt expense.
Previous wording
Provision for Income Taxes. Provision for income taxes increased $1.3 million to $2.5 million for the quarter ended March 31, 2026 from $1.2 million for the quarter ended March 31, 2025, 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 $161,000 to $2.6 million for the quarter ended September 30, 2026 from $2.5 million for the quarter ended September 30, 2025, reflecting a higher level of pre-tax income compared to the prior year period.
Previous wording
Effective tax rates for the quarter ended March 31, 2026 and 2025 were 19.8% and 15.3%, 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 September 30, 2026 and 2025 were 20.7% and 20.6%, respectively. The increase in the effective tax rate was primarily due to higher full year projected taxable income.
Previous wording
At March 31, 2026, liquidity included $123.8 million of short-term cash and cash equivalents and $983.3 million of investment securities available for sale. As of March 31, 2026, we had the capacity to borrow additional cash funds totaling $1.74 billion, comprised of $1.30 billion and $438.5 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 $716.5 million at March 31, 2026. 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.
Current wording
At September 30, 2026, liquidity included $115.8 million of short-term cash and cash equivalents and $932.0 million of investment securities available for sale. As of September 30, 2026, we had the capacity to borrow additional cash funds totaling $1.55 billion, comprised of $1.35 billion and $200.4 million from the Federal Reserve discount window and the FHLB, respectively, without pledging additional collateral. We had the ability to pledge additional securities to borrow an additional $661.8 million at September 30, 2026. 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 March 31, 2026, we had outstanding commitments to originate and purchase loans totaling $113.9 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 $19.3 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 September 30, 2026, we had outstanding commitments to originate and purchase loans totaling $97.8 million while such commitments totaled $105.2 million at June 30, 2026. As of those same dates, our pipeline of loans held for sale included $10.6 million and $19.1 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 $124.4 million and $197.0 million, respectively, at March 31, 2026, 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 $115,000 and $160,000 at March 31, 2026 and June 30, 2025, respectively.
Current wording
Construction loans in process and unused lines of credit were $179.4 million and $225.5 million, respectively, at September 30, 2026, compared to $174.3 million and $209.4 million, respectively, at June 30, 2026. We are also subject to the contingent liabilities resulting from letters of credit totaling $138,000 at September 30, 2026 and June 30, 2026.
Previous wording
For a discussion of the expected impact of recently issued accounting pronouncements that we have adopted, please refer to Note 3 to the unaudited consolidated financial statements.
Current wording
For a discussion of the expected impact of any recently issued accounting pronouncements, please refer to Note 3 to the unaudited consolidated financial statements.
Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
Comparison of Operating Results for the Nine Months Ended March 31, 2026 and March 31, 2025
Previous report — wording carried elsewhere
Net Interest Income. Net interest income increased by $15.8 million to $114.9 million for the nine months ended March 31, 2026 compared to $99.1 million for the nine months ended March 31, 2025. The increase between the comparative periods resulted from a decrease of $17.6 million in interest expense, partially offset by a decrease of $1.7 million in interest income. Included in net interest income for the nine months ended March 31, 2026 and 2025, respectively, was purchase accounting accretion of $1.6 million and $1.8 million, and loan prepayment penalty income of $1.5 million and $566,000.
Previous report — wording carried 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.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
(2)Fair value adjustments have been excluded in the balances of interest-earning assets.
Previous report — wording carried elsewhere
(3)Includes interest-bearing deposits at other banks and FHLB of New York capital stock.
Previous report — wording carried elsewhere
(5)Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
Previous report — wording carried elsewhere
(6)Net interest margin represents net interest income as a percentage of average interest-earning assets.
Previous report — wording carried elsewhere
Additional information regarding the ACL and the associated provisions recognized during the nine months ended March 31, 2026 and 2025 is presented in Note 6 to the unaudited consolidated financial statements as well as the Comparison of Financial Condition at March 31, 2026 and June 30, 2025.
Previous report — wording carried elsewhere
The remaining changes in the other components of non-interest income between comparative periods generally reflected normal operating fluctuations within those line items.
Previous report — wording carried elsewhere
The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.
Previous report — wording carried elsewhere
Provision for Income Taxes. Provision for income taxes increased $3.8 million to $7.3 million for the nine months ended March 31, 2026 from $3.5 million for the nine months ended March 31, 2025, reflecting a higher level of pre-tax income compared to the prior year period.
Previous report — wording carried elsewhere
Effective tax rates for the nine months ended March 31, 2026 and 2025 were 20.1% and 15.5%, respectively. The increase in the effective tax rate was primarily due to higher full year projected taxable income.