olivLaw · US equity research
Kearny Financial Corp. KRNY
Savings Institution, Federally Chartered · SIC 6035 · Vertical: Savings Institution, Federally Chartered (SIC 6035)
Kearny Financial Corp. is the holding company for Kearny Bank, a New Jersey savings bank that takes deposits and mainly lends against commercial real estate. It is in the middle of shifting its balance sheet toward commercial loans and relationship deposits, and its latest quarter shows net income rising while the net interest margin dipped slightly, with total assets of 7.68 billion USD at June 30, 2026 and a 2.18% margin for fiscal 2026.
At the close of 04 Nov 2026, Kearny Financial Corp. (KRNY) stock was 9.32 USD (+0.32% on the day), with market capitalisation 605.1 m USD, P/E 16.4 on diluted EPS of 0.57 USD over the last 12 months, dividend yield 4.72%, beta 0.81, 52-week range 6.26–10.13 USD. Latest reported quarter (Q4 2026): net income of 7.2 m USD (+6.0% YoY), diluted EPS 0.11 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 53.3
- neutral
- Bollinger (20, 2)
- 8.88 – 9.42
- in the upper half of the band · %B 0.81 · band width 6.0%
- SMA 50 / 200
- 9.43 / 8.65
- mixed trend
- MACD (12, 26, 9)
- -0.01 / -0.06
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.5% | −1.1% | +1.6 pp | — |
| 3 months | −3.7% | −0.5% | −3.3 pp | — |
| 6 months | +14.8% | +4.4% | +10.4 pp | — |
| Year to date | +25.8% | +12.3% | +13.5 pp | — |
| 1 year | +46.5% | +13.5% | +33.0 pp | +23.2% |
| 3 years | +21.0% | +76.4% | −55.4 pp | +71.9% |
| 5 years | −32.1% | +63.7% | −95.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Pre-tax income | 7.2 m | 7.8 m | 7.8 m | 8.2 m | 12.0 m | 11.8 m | 12.6 m | 11.0 m |
| Income tax | 1.1 m | 1.3 m | 1.2 m | 1.4 m | 2.5 m | 2.3 m | 2.5 m | 3.8 m |
| Net income | 6.1 m | 6.6 m | 6.6 m | 6.8 m | 9.5 m | 9.4 m | 10.1 m | 7.2 m |
| Diluted EPS | 0.10 | 0.10 | 0.11 | 0.11 ≈ | 0.15 | 0.15 | 0.16 | 0.11 ≈ |
| Operating cash flow | 2.5 m | -2.7 m ≈ | 16.8 m ≈ | 8.1 m | 1.5 m | 14.3 m ≈ | 7.9 m ≈ | 14.0 m |
| Dividends paid | 7.0 m | 6.9 m ≈ | 6.9 m ≈ | 6.9 m | 7.1 m | 6.9 m ≈ | 6.9 m ≈ | 6.9 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 46 percentile of its own 35-quarter history (min 11.2, median 17.3, max 76.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | unavailable | 2.1 m | 1.9 m | 2.6 m | unavailable | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | −7.5% | +36.0% | unavailable | unavailable | unavailable | unavailable |
| Net income | 42.1 m | 45.0 m | 63.2 m | 67.5 m | 40.8 m | -86.7 m | 26.1 m | 36.3 m |
| Net income YoY | +115.1% | +6.7% | +40.6% | +6.8% | −39.6% | −312.4% | unavailable | +39.1% |
| Diluted EPS | 0.46 | 0.55 | 0.77 | 0.95 | 0.63 | -1.39 | 0.42 | 0.57 |
| Diluted EPS YoY | +91.7% | +19.6% | +40.0% | +23.4% | −33.7% | −320.6% | unavailable | +35.7% |
| net % | unavailable | 2,192.3% | 3,333.3% | 2,618.1% | unavailable | unavailable | unavailable | unavailable |
| Free cash flow | 32.9 m | 13.4 m | 70.0 m | 78.4 m | 68.2 m | 42.6 m | 21.4 m | 35.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 114.8 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 766.7 m USD
- Total assets
- 7.7 bn USD
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 4.8%
- ROA
- 0.5%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Net interest income | 188.2 m | 196.6 m | 175.9 m | 142.6 m | 134.9 m | 155.3 m | SEC (XBRL)· 21 Aug 2026verified |
| Net fee income | 21.0 m | 13.9 m | 2.8 m | -2.0 m | 19.1 m | 22.8 m | SEC (XBRL)· 21 Aug 2026verified |
| Non-interest expense | 125.9 m | 125.7 m | 123.8 m | 215.2 m | 120.6 m | 129.0 m | SEC (XBRL)· 21 Aug 2026verified |
| Pre-tax income | 84.5 m | 92.3 m | 52.4 m | -80.8 m | 31.0 m | 47.4 m | SEC (XBRL)· 21 Aug 2026verified |
| Net income | 63.2 m | 67.5 m | 40.8 m | -86.7 m | 26.1 m | 36.3 m | SEC (XBRL)· 21 Aug 2026verified |
| Diluted EPS | 0.77 | 0.95 | 0.63 | -1.39 | 0.42 | 0.57 | SEC (XBRL)· 21 Aug 2026verified |
| Dividend per share | 0.35 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | SEC (XBRL)· 21 Aug 2026verified |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 67.9 m | 101.6 m | 70.5 m | 63.9 m | 167.3 m | 114.8 m | SEC (XBRL)· 21 Aug 2026verified |
| Loans | 4.8 bn | 5.4 bn | 5.8 bn | 5.7 bn | 5.8 bn | 5.8 bn | SEC (XBRL)· 21 Aug 2026verified |
| Total assets | 7.3 bn | 7.7 bn | 8.1 bn | 7.7 bn | 7.7 bn | 7.7 bn | SEC (XBRL)· 21 Aug 2026verified |
| Deposits | 5.5 bn | 5.9 bn | 5.6 bn | 5.2 bn | 5.7 bn | 5.7 bn | SEC (XBRL)· 21 Aug 2026verified |
| Short-term debt | 685.9 m | 901.3 m | 1.5 bn | — | — | — | SEC (XBRL)· 25 Aug 2023verified |
| Total liabilities | 6.2 bn | 6.8 bn | 7.2 bn | 6.9 bn | 7.0 bn | 6.9 bn | SEC (XBRL)· 21 Aug 2026verified |
| Equity | 1.0 bn † | 894.0 m † | 869.3 m † | 753.6 m † | 746.0 m † | 766.7 m † | SEC (XBRL)· 21 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Dividends paid | 28.6 m | 30.7 m | 28.5 m | 27.6 m | 27.6 m | 27.8 m | SEC (XBRL)· 21 Aug 2026verified |
Computed indicators
Growth
Profitability
Returns
Market and valuation
Banking
32 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 42 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 605.1 m USD
Key indicators
Coverage and freshness
Score by group
- Valuation62
- Returns91
- Quality13
- Balance sheet0
- Growth100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.47 – 16.24 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- Residual income10.45 – 10.91 (Mid 10.68)
- Justified P/B3.47 – 4.67 (Mid 3.98)
- Dividend discount (DDM)5.78 – 7.78 (Mid 6.63)
- Peers: P/E6.16 – 7.47 (Mid 6.83)10 companies used · median multiple 12.0x · quartiles 10.8x – 13.1xAX, BKU, CFFN, EBC, FCAP, HFBL, HTB, NRIM, PFS, WNEB
- Peers: P/B12.56 – 16.24 (Mid 13.50)12 companies used · median multiple 1.1x · quartiles 1.1x – 1.4xAX, BKU, CFFN, EBC, FCAP, FDSB, HFBL, HTB, KFFB, NRIM, PFS, WNEB
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 42/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROE · Quality | 4.8% | 21 (vs peers) | 21% |
| ROA · Quality | 0.5% | 5 (on a fixed band) | 8% |
| Cost-to-income · Quality | 72.4% | 0 (on a fixed band) | 13% |
| Net interest margin · Quality | 2.0% | 21 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 27.3% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| NPL ratio · Balance sheet | unavailable | unavailable | — |
| Cost of risk · Balance sheet | unavailable | unavailable | — |
| Loan-to-deposit · Balance sheet | 102.1% | 0 (on a fixed band) | 5% |
| P/B · Valuation | 0.8x | 92 (vs peers) | 13% |
| P/E (TTM) · Valuation | 16.4x | 31 (vs peers) | 13% |
| Dividend yield · Returns | 4.7% | 91 (vs peers) | 10% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality13/100 · 4/4 factors with a value
- Returns91/100 · 1/1 factors with a value
- Valuation62/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Kearny Financial Corp. (KRNY). Latest full fiscal year: 2022; data up to 2026-06-30.
Figures computed from the financial statements: net interest income 155.3 m USD in 2026; YoY growth 36.0%; ROE 4.8%.
The estimated value range is 6.16–7.78 USD per share (median of 5 methods, agreement: low); assumptions are illustrative. Against the central value of 6.83 USD, the price of 9.32 USD leaves a potential of -26.7% (value / price − 1) and a margin of safety of -36.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EPS CAGR 3Y: 27.3%
- P/B: 0.8x
- Dividend yield: 4.7%
What contradicts it
- ROE: 4.8%
- ROA: 0.5%
- Cost-to-income: 72.4%
- Net interest margin: 2.0%
- Loan-to-deposit: 102.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, NPL ratio, Cost of risk.
Versus the vertical median
Savings Institution, Federally Chartered (SIC 6035) · same industry (4-digit SIC) · compared with 14 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AXAxos Financial, Inc. | 5.4 bn | 10.7 | 16.7% | 624.8% | +23.5% | +15% / +147% |
| EBCEastern Bankshares, Inc. | 5.3 bn | 13.3 | 9.4% | 257.2% | +19.1% | +24% / +95% |
| TFSLTfs Financial Corporation | 4.7 bn | 46.0 | 5.3% | — | unavailable | +17% / +26% |
| BKUBankUnited, Inc. | 3.2 bn | 12.3 | 9.2% | 1,154.5% | +7.4% | +4% / +63% |
| PFSProvident Financial Services Inc | 3.1 bn | 9.8 | 11.1% | 411.6% | +7.1% | +23% / +55% |
| CFFNCapitol Federal Financial, Inc. | 1.1 bn | 13.4 | 8.0% | 508.2% | +6.5% | +33% / +63% |
| HTBHomeTrust Bancshares, Inc. | 798.6 m | 12.5 | 11.0% | — | −1.9% | +17% / +107% |
| KRNYKearny Financial Corp. | 605.1 m | 16.4 | 4.8% | — | +36.0% | +47% / +21% |
| NRIMNorthrim Bancorp, Inc. | 545.0 m | 9.9 | 16.6% | 21.8% | +30.4% | −0% / +99% |
| WNEBWestern New England Bancorp, Inc. | 281.6 m | 16.7 | 6.9% | — | −34.3% | +15% / +79% |
| FCAPFirst Capital, Inc. | 215.3 m | 11.6 | 13.9% | 252.8% | +1.6% | +29% / +145% |
| FDSBFifth District Bancorp, Inc. | 92.5 m | 52.4 | 1.3% | 273.6% | −2.3% | +29% / unavailable |
| HFBLHome Federal Bancorp, Inc. of Louisiana | 67.7 m | 11.1 | 10.8% | 364.5% | +30.0% | +40% / +72% |
| KFFBKentucky First Federal Bancorp | 44.4 m | 32.0 | 2.9% | — | −11.8% | +31% / +18% |
| BYFCBroadway Financial Corporation | — | — | -7.6% | -11,027.1% | +18.7% | +86% / +54% |
1- and 3-year price returns: for KRNY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Kearny Financial Corp. is the holding company for Kearny Bank, a New Jersey savings bank that takes deposits and mainly lends against commercial real estate. It is in the middle of shifting its balance sheet toward commercial loans and relationship deposits, and its latest quarter shows net income rising while the net interest margin dipped slightly, with total assets of 7.68 billion USD at June 30, 2026 and a 2.18% margin for fiscal 2026.
SWOT
Strengths
- The capital base is solid, with the company and bank reporting regulatory capital ratios above requirements, and substantial liquidity sources are maintained 12.
- The branch network and digital channels support deposit gathering from customers in the market area.
- Management has expanded commercial banking capabilities, including a new team focused on nonprofit and independent education clients 2.
Weaknesses
- A significant share of assets is invested in securities that yield less than loans, which limits the margin and adds volatility to reported equity.
- Reliance on wholesale funding and brokered deposits could raise costs and pressure liquidity if these sources become more expensive.
- High concentration in commercial real estate, including multi-family properties, leaves the bank exposed to regional market downturns.
Opportunities
- Growing commercial relationships and relationship-based deposits could reduce reliance on costly funding.
- Repricing existing loans at current market rates could improve the net interest margin in coming quarters 2.
- Investment in technology and automation could bring further cost savings and productivity gains.
Threats
- A deterioration in the local or national economy could increase loan delinquencies and credit losses.
- Competition from larger banks and non-bank lenders could compress margins and raise deposit costs.
- Regulatory changes affecting commercial real estate lending or capital requirements could limit lending activity.
Risks
- Interest rate riskhigh
Margin and net interest income are sensitive to rate moves, and mismatched repricing between assets and liabilities could compress the margin if funding costs rise faster than asset yields.
- Commercial loan credit qualityhigh
Commercial real estate and construction loans depend on property performance and borrower cash flows, so a regional downturn could lead to higher delinquencies and reserve builds.
- Concentration in commercial real estatemedium
Exposure to nonresidential and multi-family commercial real estate is large relative to capital, which could attract heightened regulatory scrutiny.
- Wholesale funding and liquiditymedium
Reliance on borrowings and brokered deposits makes funding harder to replace at maturity, and higher costs could weigh on results.
- Securities valuationmedium
Changes in the value of available-for-sale securities flow through other comprehensive income and can reduce reported equity, and impairments could lower book capital.
Investment thesis
What would need to be true (bull case)
- Quarterly profit rose and the margin appears to be stabilizing, which suggests the remix and cost-reduction strategy is beginning to show results 2.
- Growth in relationship deposits and commercial loans could improve funding structure and portfolio yield in the years ahead.
- The capital base and available liquidity provide a margin of safety to support growth and absorb shocks.
What would break the thesis
- If repriced or refinanced borrowers struggle, asset quality could deteriorate faster than expected.
- High concentration in commercial real estate and exposure to New Jersey and New York markets could amplify losses in a regional recession.
- Reliance on wholesale funding and brokered deposits could keep costs elevated and limit margin expansion.
What to watch
- Net interest margin trend and the effect of repricing the last COVID-era wholesale funding positionQ2 2027
- Non-performing assets and credit reserves as 2021-2022 loans repricefiscal 2027
- Growth in commercial deposits and in commercial and construction loansQ2 2027
- Non-interest expense and the effect of branch consolidationnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Kearny Financial Corp. is a Maryland corporation and holding company for Kearny Bank, a nonmember New Jersey-chartered savings bank. The bank attracts deposits from the general public and uses them, together with other funds, to originate or purchase loans for its portfolio and for sale into the secondary market. As of June 30, 2026 it had 40 branch offices, with administrative headquarters in Fairfield, New Jersey 1.
The loan book is dominated by commercial real estate, but the company is pursuing a mix shift. Its stated strategy emphasizes expanding commercial banking relationships, growing core deposits, investing in digital banking and automation, and lowering operating costs, including consolidating three branch locations during fiscal 2026 1.
The bank also holds an investment securities portfolio, mainly U.S. agency mortgage-backed securities, with growing allocations to corporate and municipal bonds, subordinated debt of financial institutions and collateralized loan obligations. Its primary market area covers several New Jersey counties and two New York counties 1.
Segments
Multi-family and nonresidential mortgage loans
These are the largest lending category, with multi-family mortgage loans at 2.50 billion USD at June 30, 2026, or 42.5% of the portfolio, and nonresidential mortgage loans at 1.0 billion USD, about 17.3% 1. The company reports that multi-family balances fell during fiscal 2026 as some loans were repaid or paid off.
Market context
The bank's lending and deposit franchise is concentrated in New Jersey and two counties in New York, where competition from other depository institutions is intense. Many competitors are larger and have greater financial and technological resources, and pressure also comes from online-only banks and non-depository firms such as mortgage banks, finance companies and fintech providers 1.
Trends
- Repricing of 2021-2022 loansheadwind
Many loans were originated at rates below current market levels and are due to reset, mature or refinance during fiscal 2027. If borrowers face higher costs, delinquencies and defaults could rise, which would weigh on asset quality 1.
- Balance sheet remix toward commercial loansmixed
The company is gradually reducing its multi-family exposure and raising the share of commercial and construction loans, which carry higher yields. If this plan executes, it could support the net interest margin over time, but it also brings higher credit risk 12.
- Lower operating coststailwind
Branch consolidation and staffing changes reduced non-interest expense in the first quarter of fiscal 2027, with declines in salaries, advertising and equipment costs 2. If these measures hold, they could improve efficiency.
- Funding costs and margin pressureheadwind
The interest rate environment has affected the cost of deposits and borrowings. In the quarter ended September 30, 2026, the margin edged down because the last COVID-era wholesale funding position repriced and prepayment penalty income declined 2.
Competitive position
Kearny Bank competes with other depository institutions in its primary market area, as well as with out-of-market banks operating online and with non-depository firms such as mortgage banks, brokerage firms and financial technology companies 1. Many competitors are significantly larger, with greater financial resources and lending limits, which constrains the bank's ability to grow quickly.
The company aims to differentiate through relationship-based service, local decision-making and tailored solutions for commercial clients, as well as technology investments 1. If this differentiation succeeds, the bank could win stable deposits and commercial loans against competitors.
- Other savings banks and regional banks in New Jersey and New York
Direct competition for deposits and loans in the same market area, many of them larger in size.
- Online banks outside the market area
Offer deposits through digital channels and compete for savers without a physical presence in the area.
- Mortgage banking companies
Compete for residential mortgage loans, which the bank originates both for its portfolio and for sale.
- Fintech companies and non-bank finance firms
Compete in payments, personal lending and digital services for small and mid-sized clients.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report22 Oct 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report21 Oct 2026Shareholder vote
- Current report20 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Proxy statement09 Sept 2026
- Annual report21 Aug 2026
- Current report23 Jul 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report03 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report23 Apr 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
- Quarterly report05 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Kearny Financial Corp. · 21 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Kearny Financial Corp. · 22 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.