Kearny Financial Corp. (KRNY) Stock

Kearny Financial Corp. (KRNY) is a Financials stock trading at $10.05 (as of 2026-09-02), with a market capitalization of $652.54M and a trailing P/E of 18.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Kearny Financial Corp. operates as the holding company for Kearny Bank that provides various banking products and services in the United States. The company offers various deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, savings accounts, and certificates of deposit accounts. It also provides various loans, such as multi-family and nonresidential real estate mortgage loans, commercial term loans and lines of credit, one- to four-family first mortgage loans, and home equity loans and lines of credit; loans to individuals for the construction or renovation of one- to four-family residences, or for the construction of commercial real estate or multi-family residential buildings; overdraft lines of credit; and personal loans. In addition, the company engages in investment activities. As of August 18, 2021, it operated a total of 48 branch offices located throughout northern and central New Jersey and Brooklyn and Staten Island, New York. The company was founded in 1884 and is headquartered in Fairfield, New Jersey.

Understand Kearny Financial Corp.: how it makes money

Kearny Financial Corp. holds Kearny Bank, a 40-branch community bank that takes in customer deposits and lends to local businesses, construction projects, and homeowners. It earns the spread between what it pays depositors and what borrowers pay, with most recent growth concentrated in commercial and construction lending.

Every dollar of profit comes from the gap between deposit pricing and loan yields; with a 4.58% quarter-to-date loan yield, the entire earnings power hinges on keeping that net interest spread intact across 40 branches of local lending.

Business quality (Mixed): Credit is clean and loan growth is constructive, but a 5% return on equity and a valuation 36% above the banking sector leave this a mixed-quality name priced for future execution.

Valuation: At 18× earnings, KRNY trades 36% above the Banking average (13×).

Bull case

Construction lending is compounding: Construction business loans are growing at a 26.8% annualized pace, and commercial business loans are up 10.2% annualized, meaning the bank is aggressively expanding its highest-yielding asset classes while deposit growth runs a steady 3.7%. Outpacing deposit growth on the asset side lets the bank reinvest more at the current yield.
Zero charge-offs on the book: Net charge-offs stood at $0.0 billion for the period and non-performing assets were just $0.05 billion, with charge-offs running at 0.04% of average loans. A clean credit book means the 4.58% loan yield translates into earnings without erosion, which is the single biggest risk mitigant for a community lender.

Bear case

Paying a 36% valuation premium: At a P/E of 17.6x versus the banking industry average of 13.0x, a retail investor is paying 36% more for each dollar of earnings than the typical regional or community bank. With a 5.0% return on equity, the premium already bakes in several years of improvement that the current earnings do not yet show.
Thin pre-provision earnings buffer: Pre-Tax Pre-Provision Net Revenue was $10 million, equal to only 10% of the $100 million quarterly revenue. That narrow cushion means a modest rise in provision expense, a handful of larger charge-offs, or a compression in loan yield could push the bank toward breakeven or below.

Valuation — source: SEC EDGAR (first-party)
Price	$10.05
Market Cap	$652.54M
P/E Ratio	18.0
EV / EBITDA	10.5
Price / Book	0.85
Price / Sales	2.01
FCF Yield	5.4%
DCF Value (model)	$4.92
DCF Upside vs Price	-51.0%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$324.31M
Net Margin	11.2%
Revenue Growth (YoY)	-0.1%
EPS Growth (YoY)	38.1%
FCF Growth (YoY)	64.9%

Valuation vs Sector & Industry
Stock P/E	18.0
Sector P/E (Financials)	14.9
Industry P/E (Banking)	12.7
vs Sector	20.6%
vs Industry	41.7%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($60.19M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Banking
CEO	Craig L. Montanaro
Employees	552
Country	US
IPO Date	2005-02-24

Related Companies (Banking; 8 comparable banks)

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.