Kearny Financial Corp. (KRNY): History, Ownership, Mission, How It Works & Makes Money

How does a community bank founded in 1884 manage to deliver a dramatic turnaround in a volatile regional banking environment? Kearny Financial Corp. (KRNY) is doing just that, posting a net income of $26.1 million for the fiscal year ended June 30, 2025, a massive swing from the prior year's loss, largely driven by operational efficiency and an expanded net interest margin (NIM). With total assets of $7.74 billion and institutional ownership, including a 13.32% stake held by BlackRock, Inc. as of mid-2025, Kearny Financial is a fascinating study in core business resilience and strategic growth. We need to understand the nuts and bolts of how this New Jersey-based holding company, with its 40+ branch network, generates its $151.63 million in annual revenue and what that means for its future valuation.

Kearny Financial Corp. (KRNY) History

You're looking for the bedrock of Kearny Financial Corp., the holding company for Kearny Bank, and its journey from a local New Jersey mutual institution to a publicly traded entity with billions in assets. The direct takeaway is that its long history, dating back to 1884, is defined by a pivotal shift from depositor-owned community focus to a stock-owned, growth-by-acquisition model, culminating in a strategic pivot toward organic growth and digital efficiency in 2025.

Given Company's Founding Timeline

Year established

The institution was originally established in 1884 as a New Jersey building and loan association, long before its current form as Kearny Financial Corp.

Original location

The company was founded in Kearny, New Jersey, with the initial goal of serving the financial needs of the local community.

Founding team members

Kearny Bank was established by a group of local citizens in Kearny, New Jersey, who sought to create a community-based savings institution. Specific names of the original founding team members are not detailed in public records, which is common for mutual associations of that era.

Initial capital/funding

As a mutual savings and loan association, its initial funding was vested in its depositors, not external shareholders. The exact initial capital amount is not specified in available historical records, but the structure itself emphasized collective, community-centric governance.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few critical decisions that fundamentally changed its structure and operating model. The shift to a stock-owned entity was the first major pivot, but recent strategic moves are equally important as of November 2025.

• 1996 Mutual-to-Stock Conversion: This was the single most transformative event, moving the institution from being depositor-owned to publicly traded. This change unlocked capital for growth, enabling the subsequent acquisitions that expanded its footprint across 10 New Jersey counties and into New York.
• Post-Acquisition Rationalization: The company demonstrated a willingness to streamline operations, notably by selling 14 New Jersey branches to a major competitor in 2018. This was a clear move to optimize its network and focus resources.
• The 2025 Strategic Pivot: In the 2025 fiscal year, the company successfully navigated industry pressures and shifted to a clear growth strategy. This included significant investments in Artificial Intelligence (AI) to enhance operational efficiency and client services, which is defintely a forward-looking move in a competitive market.
• Financial Turnaround in FY2025: The company reported net income of $26.1 million for the fiscal year ended June 30, 2025, a powerful financial recovery from a net loss of $86.7 million in the previous fiscal year. This turnaround was largely driven by the absence of one-time losses from a prior investment securities portfolio repositioning.

As of September 30, 2025, Kearny Financial Corp. maintained total assets of approximately $7.65 billion and a market capitalization around $411.74 million, reflecting its established position in the regional banking sector. For a deeper dive into the current ownership landscape, you should read Exploring Kearny Financial Corp. (KRNY) Investor Profile: Who's Buying and Why?

Kearny Financial Corp. (KRNY) Ownership Structure

Kearny Financial Corp. (KRNY) is fundamentally controlled by institutional investors, who hold the majority of the common stock, but the ownership structure is diverse enough to require attention to both large asset managers and retail sentiment. This balance of institutional and retail ownership means the company's strategy must satisfy both long-term portfolio needs and near-term market expectations.

Kearny Financial Corp.'s Current Status

Kearny Financial Corp. is a publicly traded company, specifically a Maryland corporation that serves as the holding company for Kearny Bank, a full-service community bank. It trades on the NASDAQ Stock Market LLC under the ticker symbol KRNY. As of November 2025, the company has a market capitalization of approximately $0.40 Billion USD, reflecting its status as a mid-sized regional financial institution.

The company operates 40 retail branch offices across 10 New Jersey counties, plus Brooklyn and Staten Island, New York, and it reported approximately $8 billion in total assets for the fiscal year ending in 2025. This public status means all major decisions, from executive compensation to strategic mergers, are subject to shareholder votes and SEC scrutiny. You can dive deeper into the metrics that matter most to investors in Breaking Down Kearny Financial Corp. (KRNY) Financial Health: Key Insights for Investors.

Kearny Financial Corp.'s Ownership Breakdown

The company's ownership is heavily weighted toward professional money managers, which is typical for a financial institution of this size. Institutional investors hold the most sway, but insider ownership is also significant enough to align management interests with shareholder returns. Here's the quick math for the breakdown, using fiscal year 2025 data:

What this estimate hides is the power of the top holders; the nine largest shareholders account for over half of the total share register, so their trading decisions can create significant stock price volatility.

Kearny Financial Corp.'s Leadership

The company is steered by a seasoned executive team with deep roots in the regional banking sector, ensuring operational stability and a focus on community banking principles. The average tenure for the management team is a solid 6.3 years, which is a good sign of stability.

The key executive leaders, as of November 2025, are:

• Craig L. Montanaro: President and Chief Executive Officer (CEO). He has been in the CEO role since April 2011, providing long-term strategic continuity.
• Sean Byrnes: Executive Vice President and Chief Financial Officer (CFO). He was promoted to this senior financial role in July 2024, overseeing all aspects of corporate finance.
• Keith Suchodolski: Senior Executive Vice President and Chief Operating Officer (COO). Also promoted in July 2024, he is responsible for strategic oversight of retail, business banking, and corporate administration.
• Cassia J. Beierle: Executive Vice President and General Counsel. Appointed in July 2025, she manages the legal function and provides strategic counsel on governance and regulatory compliance.

This leadership structure shows a clear separation of financial control (CFO Byrnes) and operational execution (COO Suchodolski), all under the long-tenured guidance of CEO Montanaro.

Kearny Financial Corp. (KRNY) Mission and Values

Kearny Financial Corp.'s purpose extends beyond quarterly earnings, focusing on fostering financial prosperity for its clients and strengthening the communities it serves. This community-centric approach is anchored by core values like Integrity and Simplicity, which guide every decision.

Honestly, a bank's mission statement is its cultural DNA. It tells you where the management team is actually steering the ship.

Given Company's Core Purpose

The company's core purpose is to be an essential partner in helping people, businesses, and communities achieve financial success, which is a clear mandate for community banking. This isn't just about transactions; it's about long-term partnership. For example, the KearnyBank Foundation gifted over $590,000 to charities in 2024, showing that commitment in action.

Official mission statement

The formal mission statement is a direct articulation of this community focus, aiming for broad-based success across its operating regions of New Jersey and New York.

• Create financial abundance and thriving communities.
• Become an essential partner in helping people, businesses, and communities achieve prosperity.

This mission drives their lending strategy, which primarily consists of commercial and residential real estate collateralized loans.

Vision statement

The vision statement maps the mission to the business model, emphasizing continuous improvement and shareholder return. It balances the community focus with the need for a defintely strong financial foundation.

• Continuously evolve and exceed client expectations through innovative, comprehensive banking services.
• Sustain earnings growth and margin expansion to create long-term shareholder value.

To be fair, they are delivering on the earnings part; Kearny Financial Corp. reported a net income of $26.1 million for the fiscal year ended June 30, 2025. This growth is what funds the community engagement.

Given Company slogan/tagline

The public-facing tagline distills the mission and values into a memorable promise for clients and stakeholders. It's a simple, human-focused summary of their brand identity.

• Empowering Prosperity. Connecting Community. Delivering Trust.

Their core values, which include Integrity, Relationships, and Security, are the bedrock of this trust. They underpin everything, from client service to managing their approximately $7.74 billion in total assets as of June 30, 2025. You can review their full cultural framework here: Mission Statement, Vision, & Core Values of Kearny Financial Corp. (KRNY).

Kearny Financial Corp. (KRNY) How It Works

Kearny Financial Corp., through its subsidiary Kearny Bank, operates as a community-focused financial institution that primarily generates revenue by taking deposits from local clients and reinvesting those funds into loans, predominantly commercial and residential real estate, across New Jersey and New York. The core business model is straightforward: manage the spread between the interest earned on its loan portfolio (assets) and the interest paid on deposits and borrowings (liabilities), known as net interest income (NII).

Kearny Financial Corp.'s Product/Service Portfolio

The company offers a comprehensive suite of banking and financial services, targeting a diverse client base from individual consumers to middle-market businesses within its regional footprint. This balanced portfolio is key to maintaining a stable funding base, with total deposits standing at approximately $5.68 billion at the fiscal year-end of June 30, 2025.

Kearny Financial Corp.'s Operational Framework

The operational framework focuses on balancing traditional community banking-personal service via its 40 retail branch offices-with modern digital efficiency to manage its approximately $7.74 billion in total assets as of June 30, 2025. This omnichannel approach is defintely critical for client retention and scalable growth.

• Funding Strategy: Shifted focus to organic deposit growth and brokered CDs for more favorable funding costs, leading to a decrease in borrowings to $1.26 billion at June 30, 2025.
• Technology Integration: Initiated a strategic partnership in September 2025 to implement Robotic Process Automation (RPA) and AI-enabled intelligent document processing to streamline back-office workflows and accelerate client service.
• Risk Management: Maintained a focus on credit quality, though total nonperforming loans increased to $64.6 million by September 30, 2025, driven by construction credits.
• Efficiency Drive: The AI and automation push is specifically designed to reduce operating expenses and increase capacity for new revenue-generating opportunities.

Kearny Financial Corp.'s Strategic Advantages

The company's market success is rooted in its deep regional presence and a clear, actionable strategy to improve its net interest margin (NIM) and operational efficiency. You need a clear competitive edge in a crowded market, and Kearny Financial Corp. has two main ones.

• Hyper-Local Franchise Value: A strong, century-plus history as Kearny Bank provides trust and deep community ties across 10 New Jersey counties and parts of New York, which is hard for national banks to replicate.
• Margin Expansion and Cost Control: The strategic focus on lowering the cost of funds and the aggressive push into AI and automation are designed to expand the NIM, which reached 2.00% for the quarter ended June 30, 2025. That's a clear path to better profitability.
• Omnichannel Service Model: Combining the high-touch service of a community bank with robust digital channels and a specialized Private Client Group allows them to serve a broad spectrum of clients effectively, from the consumer to the sophisticated commercial borrower.

To understand the long-term direction, you should review their Mission Statement, Vision, & Core Values of Kearny Financial Corp. (KRNY).

Kearny Financial Corp. (KRNY) How It Makes Money

Kearny Financial Corp., through its subsidiary Kearny Bank, primarily makes money the way any traditional bank does: by borrowing funds at a lower interest rate (deposits and borrowings) and lending those funds out at a higher interest rate (loans and securities), a process measured by the net interest margin (NIM). The core of their revenue engine is the spread between what they earn on assets and what they pay on liabilities, supplemented by fees for services like account maintenance and electronic banking.

Kearny Financial Corp.'s Revenue Breakdown

As of the quarter ended September 30, 2025, Kearny Financial Corp.'s revenue is overwhelmingly dominated by interest income, a classic characteristic of a community-focused regional bank. Here is the breakdown based on the $43.5 million in total revenue for the quarter.

The $37.7 million in Net Interest Income for the quarter is the lifeblood of the company, showing a solid 5.2% quarter-over-quarter increase due to improved asset yields and a strategic reduction in higher-cost borrowings. Non-Interest Income, which totaled $5.8 million, saw a sharper increase of 17.2%, though this was partially driven by a non-recurring gain on the sale of property.

Business Economics

The business economics for Kearny Financial Corp. revolve around managing a liability-sensitive balance sheet in a shifting interest rate environment and strategically diversifying its loan book. The core profit metric, the Net Interest Margin (NIM), expanded by 10 basis points to 2.10% in the quarter ended September 30, 2025.

• Interest Rate Leverage: The company is positioned to benefit from anticipated reductions in the Federal Funds Rate, which should lower its cost of funds faster than the yield on its interest-earning assets, further boosting NIM.
• Loan Portfolio Shift: There is a clear strategic push toward higher-yielding, shorter-duration assets. The company is actively growing its construction and commercial business loans, which saw annualized growth of 26.8% and 10.2%, respectively, in the most recent quarter.
• Funding Strategy: Kearny Financial Corp. is actively managing its liabilities, reducing total borrowings by 4.0% in the quarter to $1.21 billion, primarily by cutting back on Federal Home Loan Bank (FHLB) advances. This is a smart move to lower funding costs.
• Non-Interest Income Focus: While small, the non-interest income stream is being enhanced through increased fees and service charges, which grew by 36.2% to $892,000 in the quarter, providing a more stable, fee-based revenue source.

A bank's NIM is the ultimate measure of its core business health. Breaking Down Kearny Financial Corp. (KRNY) Financial Health: Key Insights for Investors

Kearny Financial Corp.'s Financial Performance

The financial performance for the period closest to November 2025 shows a marked improvement in profitability, though it is accompanied by some credit quality headwinds. You need to look at both sides of the balance sheet.

• Net Income and EPS: Net income for the quarter ended September 30, 2025, was $9.5 million, a substantial increase from $6.8 million in the prior quarter. Diluted Earnings Per Share (EPS) rose by 36.4% quarter-over-quarter to $0.15 per share.
• Asset Quality Pressure: Total non-performing assets increased to $64.6 million, or 0.84% of total assets, up from $45.6 million in the previous quarter. This increase is defintely something to watch, driven largely by delinquencies in multi-family and construction loans.
• Capital Strength: The company's tangible book value per share increased by 0.9% during the quarter to $9.86, signaling continued capital accretion and a strong underlying value for shareholders.
• Efficiency and Technology: Kearny Financial Corp. is actively working to control costs, with strategic investments in Artificial Intelligence (AI) and robotic process automation (RPA) aimed at enhancing operational efficiency and scaling revenue without a proportional rise in non-interest expense.
• Dividend Payout: The company maintained its quarterly cash dividend of $0.11 per share, demonstrating a commitment to shareholder returns, which translates to a strong dividend yield.

Kearny Financial Corp. (KRNY) Market Position & Future Outlook

Kearny Financial Corp. is strategically positioned as a liability-sensitive regional bank, meaning its balance sheet is set up to benefit as the Federal Reserve's rate cuts begin to translate into lower funding costs, driving net interest margin expansion. The company is actively shifting to an organic growth strategy, supported by a strong credit profile that has minimal exposure to the troubled New York City rent-regulated multifamily and office real estate sectors, which is a defintely a key differentiator in late 2025.

Competitive Landscape

In the highly fragmented New Jersey and New York regional banking market, Kearny Financial Corp. competes primarily on localized service and deposit stability. The table below uses the New Jersey deposit market share as of June 30, 2025, to illustrate the company's standing against key regional peers, which are significantly larger by market capitalization.

Opportunities & Challenges

The company's near-term trajectory is defined by its ability to execute on efficiency gains while navigating persistent industry-wide cost pressures. For a deeper dive into the numbers, you can read Breaking Down Kearny Financial Corp. (KRNY) Financial Health: Key Insights for Investors.

Industry Position

Kearny Financial Corp. occupies a niche as a smaller, well-capitalized regional player with approximately $7.7 billion in total assets as of June 30, 2025. This size puts it below the threshold of the larger regional banks (often $20 billion+ in assets), but its market capitalization of approximately $0.40 Billion USD reflects a valuation discount relative to peers like Provident Financial Services.

The company's focus on credit quality is a significant strength, especially in the current climate. Its non-performing assets remained low at just 0.49% of total assets as of March 31, 2025. Still, the small New Jersey deposit market share of 1.28% in its core market means it must rely on superior service and product differentiation, plus, its recent investment in Artificial Intelligence (AI) and Robotic Process Automation (RPA) is a clear move to cut costs and boost client service to compete with larger institutions.

• Maintain a tangible equity to tangible assets ratio of 8.31% (as of March 31, 2025), which is a strong capital buffer.
• Leverage the liability-sensitive balance sheet to capture margin gains as the cost of funds decreases.
• Deepen commercial, municipal, and non-profit client relationships through the newly established Private Client Group and Investment Services division.

The next concrete action for management is to ensure the operational efficiency program with The Lab Consulting delivers the promised cost optimization within the first year to boost shareholder returns.