Kearny Financial Corp. (KRNY): Business Model Canvas [Dec-2025 Updated]

You're digging into how Kearny Financial Corp. actually makes its money, moving past the stock ticker to see the engine room. As someone who's spent two decades mapping out bank strategies, I can tell you their model hinges on a tight, relationship-focused community bank approach, balancing a $5.63 billion deposit base against a $5.77 billion loan book. We'll break down the nine blocks-from their key activity of executing digital transformation to the 6.79% dividend they offer shareholders-so you see exactly where the risk and the return lie in their $7.65 billion asset structure. Honestly, it's a classic community play with some modern twists you need to understand before making your next move.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Key Partnerships

You're looking at how Kearny Financial Corp. builds its value by relying on external expertise and major financial backers. Honestly, for a community bank with assets around $8 billion, these relationships are key to scaling operations and maintaining market presence.

The partnership with The Lab Consulting, announced on September 30, 2025, is a clear move to automate the back office. They're deploying Robotic Process Automation (RPA) and AI-enabled document processing to cut down on manual work. This is about making workflows faster and more efficient across the board.

For treasury and liquidity management, Kearny Financial Corp. relies on its network of correspondent banks. While I don't have the exact names or balances of those agreements, we know the bank is actively managing its funding costs. For instance, in Q2 Fiscal 2025, they reduced borrowings, including Federal Home Loan Bank (FHLB) lines, by 14.9% from September 30, 2024, to $1.26 billion at December 31, 2024, which helps lower the cost of funds.

Growing the loan portfolio, especially mortgages, requires external origination channels. Kearny Bank continues to expand its franchise, which spans 10 New Jersey counties plus Brooklyn and Staten Island, New York, using 40 retail branch offices. Their loan receivable balance was $5.85 billion as of June 30, 2025.

The ownership structure shows significant reliance on large institutional players. These investors provide stability and market confidence, especially since Kearny Financial Corp. declared a quarterly cash dividend of $0.11 per share for Q2 2025. Here's a look at the top institutional holders as of late September 2025:

Community involvement is formalized through the KearnyBank Foundation. This isn't just goodwill; it's a structured commitment to the areas where they operate. In 2024, the Foundation gifted a total of $590,385 to charities. Since 2020, the total grants awarded exceed $3.8 million. For 2025, they continued this support, with grants totaling nearly $20,000 announced in November 2025 alone. The 2024 giving was segmented:

• - Community Betterment: $272,885
• - Education: $142,885
• - Quality of Life: $92,500
• - Housing: $80,000

The Foundation focuses its support across these four main areas, plus scholarships.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Key Activities

You're looking at the core engine of Kearny Financial Corp. (KRNY) as of late 2025-the day-to-day actions that keep the lights on and the balance sheet growing. Honestly, for a community bank, it all comes down to managing the money coming in and the money going out on loan.

The first critical activity is securing and keeping funding. Kearny Financial Corp. focuses on attracting and retaining a stable deposit base, which stood at $5.63 billion as of September 30, 2025. This base is granular, with consumer deposits representing 63.8% of non-maturity deposits at the end of fiscal year 2025. The bank has actively managed its funding mix, showing a decrease in borrowings, such as a 4.0% reduction in Federal Home Loan Bank advances in the quarter ending September 30, 2025. This focus on core deposits helped the net interest margin expand to 2.10% for the quarter ending September 30, 2025.

Next up is the deployment of that capital through origination and servicing of its loan portfolio. As of the third quarter of fiscal year 2025, total loans were reported at $5.8 billion. This activity is detailed by loan type, showing the concentration and focus areas:

The bank is actively executing digital transformation and branch consolidation. Management noted the launch of a partnership with The Lab Consulting to implement robotic process automation to elevate the client experience. This is paired with the execution of previously announced branch consolidations to reallocate capital. The franchise operates 40 retail branch offices across New Jersey and New York City, with deposits per branch increasing to $133 million as of Q3 FY2025.

A key supporting activity is managing the investment securities portfolio for liquidity and yield. As of Q3 FY2025, the investment securities portfolio totaled $1.26 billion. The composition shows a clear structure for managing interest rate risk and liquidity:

• Agency MBS accounted for 52.8%.
• CLOs made up 28.8%.
• Corporate bonds were 11.5%.
• The portfolio had an effective duration of approximately 3.4 years.
• 33.4% of the portfolio was in floating rate securities.

Finally, Kearny Financial Corp. is focused on diversifying lending into construction and commercial business loans, though multi-family remains the largest segment. The Q3 FY2025 breakdown shows the smaller, targeted efforts:

• Commercial and industrial loans represented 2.4% of the total portfolio.
• Construction loans accounted for 3.0% of the total portfolio in Q3 FY2025.

To be fair, the dollar amount for Commercial Business loans was $138,755 thousand as of June 30, 2025. Asset quality remains a focus, with net charge-offs at less than 0.01% of average loans for the quarter ending June 30, 2025.

Finance: draft next quarter's funding gap analysis by Monday.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities that Kearny Financial Corp. relies on to execute its business strategy as of late 2025. These aren't just line items; they are the engines of the operation.

The most immediate, tangible resource is the balance sheet size. As of September 30, 2025, Kearny Financial Corp. reported total assets of approximately $7.65 billion. This scale underpins the lending capacity and overall market presence in the New Jersey and New York markets.

The physical footprint is being actively managed for efficiency. Kearny Financial Corp. operates a streamlined physical network, having consolidated its footprint to 40 streamlined retail branch offices across New Jersey and New York by October 2025. This network, which includes locations in areas like Hudson County, NJ, and Staten Island, NY, serves as the primary point of customer interaction and local market penetration.

Funding is the lifeblood, and the core deposit funding base remains a defintely critical resource. Total deposits stood at $5.63 billion as of September 30, 2025. To give you a sense of the quality of that funding, as of the prior quarter end (June 30, 2025), core non-maturity deposits represented 65.2% of total deposits, totaling $3.70 billion. That stickiness is what analysts watch closely.

Technology is increasingly a key differentiator. Kearny Financial Corp. is investing in its proprietary technology platform and virtual agent capabilities, evidenced by the September 2025 strategic partnership with The Lab Consulting to deploy advanced automation and analytics aimed at enhancing operational efficiency. This signals a focus on modernizing client service delivery.

Finally, the human capital-the experienced management team and specialized lending officers-drives execution. This team guided the company to a net income of $9.5 million for the quarter ended September 30, 2025, and managed a net interest margin that expanded to 2.10% for that same period.

Here's a quick look at the key financial metrics that define the resource base at the end of the third quarter of fiscal year 2026:

The resource structure also includes significant liquidity backstops:

• - Available secured borrowing capacity with the FHLB and Federal Reserve Discount Window totaled $2.54 billion.
• - This capacity represented 33.2% of total assets as of September 30, 2025.
• - Tangible book value per share reached $9.86 for the quarter.

The management team is also focused on optimizing the physical footprint, as seen by the recent branch consolidation efforts. That's a clear action tied directly to the physical resource base.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Value Propositions

You're looking at what Kearny Financial Corp. (KRNY) offers its customers and shareholders as of late 2025. The value proposition centers on blending traditional community bank service with modern operational strength and credit discipline.

The core offering is a Personalized, relationship-focused community banking service. Kearny Bank emphasizes providing superior personalized service and unmatched expertise to deepen relationships across its consumer, commercial, municipal, and non-profit client base. This is supported by an operational footprint of 40 full-service branches across 12 counties in New Jersey and the New York metro area, following consolidations completed by October 2025.

A critical element of the value proposition is the bank's demonstrated credit strength. Kearny Financial validated its long history of strong credit performance, reporting net charge-offs below 0.05% for the full Fiscal Year 2025. To be fair, the annualized net charge-offs for the quarter ended September 30, 2025, were reported at 0.07% of average loans, an increase from the prior quarter's less than 0.01%.

For clients needing specialized services, Kearny Financial offers a Comprehensive Private Client Group. This group was established to serve the specialized needs of consumer clients, complemented by the establishment of an Investment Services division.

The bank provides a Full suite of commercial, municipal, and non-profit banking services, positioning itself as an essential partner for prosperity for businesses and communities. As of late 2025, the holding company reported total assets of approximately $8 billion. The deposit base, a key funding source, stood at $5.7 billion as of September 30, 2025.

For shareholders, the value proposition includes an Attractive dividend yield. While the prompt mentioned approximately 6.79%, public data from late 2025 analysis indicated a yield of about 6.7% based on an annual dividend of $0.44 per share. The most recently declared quarterly dividend, payable on November 19, 2025, was $0.11 per share.

Here's a quick look at the financial context supporting these value drivers as of the latest reported quarter:

The bank also highlights strategic technology investments as part of its ongoing value delivery, including launching new applications for small and medium-sized businesses and developing an internal AI chatbot to improve service quality for branch staff.

The value proposition is further supported by the shift in funding mix, which saw a reduction in higher-cost borrowings, positioning the bank for improved profitability. This shift helped the NIM expand by 10 basis points to 2.10% for the quarter ending September 30, 2025.

You should review the latest investor presentation from October 23, 2025, for the most granular detail on segment performance.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Customer Relationships

You're looking at how Kearny Financial Corp. keeps its customers engaged and growing its deposit base across its footprint. The relationship strategy balances high-touch personal service with scalable digital access.

Dedicated Private Client Group for specialized, high-touch service

Kearny Financial Corp. formally introduced its Private Client Services in 2021. This segment targets individuals with elevated resources, focusing on convenience, opportunity, and enhanced security for their banking needs. The commitment to specialized service is reflected in internal recognition; for instance, in 2025, an Assistant Vice President and Private Client Operations Coordinator received the NJBankers Rising Star Award, showing investment in the personnel managing these key relationships.

Personal banker model emphasizing long-term relationships

The core relationship approach emphasizes long-term connection, evident in the granular nature of the deposit base. As of March 31, 2025, the bank served 106,827 retail deposit accounts. This large base, with an average retail balance of $41,372, suggests a reliance on a broad, relationship-focused customer pool rather than heavy reliance on a few large wholesale sources, though deposits were $5.71 billion at that date. The CEO noted in early 2025 that deposit growth was robust across the branch network and commercial lending relationships.

The structure of the customer base as of March 31, 2025, shows this segmentation:

Note: Total deposits were $5.7 billion as of March 31, 2025.

Community involvement and local foundation support

Community ties are a tangible part of the relationship strategy, executed through the KearnyBank Foundation. In 2024, Kearny Bank gifted a total of $590,385 to charities across New Jersey and New York. This giving was allocated across key areas:

• Community betterment: $272,885
• Education: $142,885
• Quality of life: $92,500
• Housing: $80,000

Since 2020, the KearnyBank Foundation has cumulatively awarded more than $3.8 million in grants. More recently, in November 2025, the foundation provided grants totaling nearly $20,000 to two New Jersey nonprofits for residential care enhancements. The bank operates 43 full-service branches across 12 counties in New Jersey and New York City.

Self-service options via digital channels and virtual agent

Kearny Financial Corp. supports its physical presence with digital capabilities. The company explicitly cited growth from its digital channels as a driver for deposit increases in the first quarter of 2025. While specific metrics for virtual agent usage aren't public, the focus on digital channels is a clear component of scaling service delivery alongside the personal banker model. The bank's total deposits stood at $5.63 billion as of September 30, 2025.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Channels

You're looking at how Kearny Financial Corp. reaches its customers, which is a mix of physical presence and digital tools, all grounded in relationship management. The structure here is key to how they move assets and gather deposits across their market area.

The physical footprint remains a core channel, though it is evolving. Kearny Bank's franchise includes an expansive network throughout 10 New Jersey counties and Brooklyn and Staten Island, New York. As of the latest reports, this network offered the convenience of 40 retail branch offices. However, you should note that the company received regulatory approval to consolidate three branch locations, scheduled to close in October 2025, which suggests a slight reduction in the physical footprint late in the year.

Digital delivery is clearly gaining importance, supporting the physical network. Kearny Financial Corp. uses online and mobile banking platforms for both retail and business clients. In fiscal 2025, they actively enhanced this digital offering. Specifically, they expanded their chatbot technology by creating a virtual agent within the digital platform to process natural language queries for information or transaction initiation.

For business clients, the digital channel was augmented in fiscal 2025 with the introduction of two human resources/timekeeping apps tailored for use by small and medium-sized businesses. The growth in deposits, which reached $5.63 billion as of September 30, 2025, reflected robust performance from both the branch network and these digital channels.

High-touch, specialized service is delivered through dedicated relationship managers and specialized divisions:

• - Commercial lending and Private Client relationship managers focus on deepening relationships with consumer, commercial, municipal, and non-profit clients.
• - The Private Client Group serves the specialized needs of consumer clients.

The Investment Services division is a distinct channel for wealth management, showing strong recent performance. For the fiscal year 2025, net revenues for this business increased by 47%, and the Return on Investment (ROI) improved to 19.1% from 15.4% in fiscal 2024.

Here is a quick look at the scale of the business supporting these channels as of late 2025:

The company maintained significant secured borrowing capacity with the Federal Home Loan Bank and the Federal Reserve Discount Window, totaling $2.54 billion at September 30, 2025, representing 33.2% of total assets.

Finance: draft 13-week cash view by Friday.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Customer Segments

You're looking at the core client base for Kearny Financial Corp. as of late 2025. The bank's business is heavily weighted toward real estate lending within its defined geographic footprint, which directly maps to its primary customer groups.

The primary customer segments served by Kearny Financial Corp. are:

• - Retail consumers in northern/central New Jersey and NYC metro
• - Small and medium-sized commercial businesses (SMBs)
• - Municipal and non-profit organizations
• - Affluent individuals served by the Private Client Group

The lending portfolio, which is a direct reflection of the commercial and retail customer base, shows a significant concentration in commercial real estate, particularly multi-family properties, which totaled $2,709,654 thousand as of June 30, 2025. The geographic focus is clearly on New Jersey and the New York City area, with New Jersey accounting for 56.7% and New York City areas (including Brooklyn at 9.0%) making up a substantial portion of the overall loan portfolio as of December 31, 2024.

Here's a breakdown of the loan portfolio as of June 30, 2025, which illustrates the scale of the commercial and residential segments:

The commercial segment, which includes SMBs and real estate investors, represents the largest portion of the loan book, with total commercial loans at $4,012,678 thousand on June 30, 2025. The retail consumer segment is primarily represented by the one- to four-family residential mortgage category, which stood at $1,748,591 thousand at the same date.

The funding side of the business, which is the deposit base, also reflects these local consumer and business relationships. Total deposits reached $5.68 billion at the end of Q4 FY2025.

• - Interest-bearing demand deposits and consumer savings deposits drove growth in Q3 FY2025.
• - The Private Client Services group, introduced in 2021, targets affluent individuals, though its specific asset balance isn't broken out in the primary loan data.
• - Municipal and non-profit organizations are served through both lending and deposit services, often reflected within the broader commercial or business categories.

Finance: draft a memo by next Tuesday detailing the expected impact of the $1.250 billion NYC Multifamily portfolio on Q1 FY2026 net interest income, given the repricing schedule.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Cost Structure

You're mapping out the cost side of Kearny Financial Corp.'s operations as of late 2025. For a bank, the cost structure is heavily weighted toward funding costs and personnel, which is what we see here.

High interest expense on deposits and borrowings remains a primary cost driver. For the quarter ending June 2025, the reported Interest Expenses were $44.6 million. This reflects the cost of funding assets in the prevailing rate environment, even as the company noted a reduction in borrowings in some recent periods.

Personnel costs for 557 employees and branch operations represent a significant, fixed-like component. For the quarter ended September 30, 2025, salary and benefits expense alone reached $18.7 million. This figure reflects annual merit increases and incentive compensation costs for the 557 employees supporting the franchise.

Costs associated with technology and digital platform maintenance are embedded within operating expenses. For the quarter ended December 31, 2024, the line item for Equipment and systems, which captures some of this, was $3.892 million. Keeping the digital channels running smoothly is a non-trivial, ongoing expense.

Operating expenses from the 40-branch physical network are substantial, covering everything from salaries to occupancy. Total non-interest expense for the quarter ended September 30, 2025, was reported at $31.7 million. This total expense base covers the operations across the 40 retail branch offices located throughout northern and central New Jersey and Brooklyn and Staten Island, New York.

Dividend payments are a direct cash outflow to equity holders. Kearny Financial Corp. declared a quarterly cash dividend of $0.11 per share for the period ending November 2025. This commitment resulted in a high payout ratio; the Dividend Payout Ratio reported for June 2025 stood at 106%, and the ratio in relation to the last financial year was 104.76%. Payout ratios above 75% are definitely watched closely for sustainability.

Here's a quick look at some of the key expense line items reported for recent quarters in FY 2025, showing the scale of these costs:

The cost structure is clearly dominated by interest expense on liabilities and personnel/occupancy costs tied to the branch network. The high dividend payout ratio suggests that a significant portion of earnings, or even more, is being returned to shareholders, which impacts retained earnings available to cover other operational costs.

The key cost components that you need to monitor closely are:

• Interest expense on deposits and borrowings.
• Salary and benefits expense for the 557 staff.
• Net occupancy expense for the 40 physical locations.
• The sustainability of the 106% dividend payout ratio seen in June 2025.

Finance: draft 13-week cash view by Friday.

Kearny Financial Corp. (KRNY) - Canvas Business Model: Revenue Streams

You're analyzing the core income generation for Kearny Financial Corp. (KRNY) as of late 2025. For a community bank like Kearny Financial Corp., the revenue streams are heavily weighted toward traditional lending activities, but fee income is an important secondary component.

Net interest income remains the primary engine, which was reported at $37.7 million for the first quarter of fiscal year 2026 (Q1 FY26), representing a 5.2% increase quarter-over-quarter. This is the difference between the interest earned on assets, like loans, and the interest paid out on liabilities, such as deposits and borrowings.

The interest earned on the asset side is directly tied to the size and yield of the loan book. For Q1 FY26, the loans receivable total stood at $5.77 billion as of September 30, 2025. The total interest income generated from all earning assets for that same quarter was $82.51 million.

Beyond the core lending margin, Kearny Financial Corp. captures revenue through non-interest sources. Total non-interest income for Q1 FY26 totaled $5.85 million.

This non-interest income is comprised of several smaller, but still important, streams. You can see the breakdown of the key components from the Q1 FY26 results in the table below:

The fees generated from deposit accounts and general banking services are a key part of that non-interest income bucket. Specifically, fees and service charges for the quarter ended September 30, 2025, were $892,000.

Looking at the full fiscal year 2025 performance, the total reported revenue was $151.63 million for the fiscal year ending June 30, 2025. This top-line figure reflects the overall scale of the business activities over the entire year.

Here are the key revenue stream metrics we've established for the most recent reporting period:

• Net interest income, the primary source, which was $37.7 million in Q1 FY26.
• Interest income from the $5.77 billion loan portfolio as of September 30, 2025.
• Non-interest income, totaling $5.85 million in Q1 FY26.
• Fees from deposit accounts and banking services, which were $892,000 in Q1 FY26.
• Income from the $151.63 million in total FY 2025 revenue.

Finance: draft 13-week cash view by Friday.