Kearny Financial NASDAQ: KRNY shareholders elected four directors, ratified Crowe LLP as the company’s independent registered public accounting firm for fiscal 2027 and approved, on a non-binding advisory basis, executive compensation at the company’s annual meeting.
The company said Theodore J. Aanensen, Curtland E. Fields, Joseph P. Mazza and Charles J. Pivirotto were each elected to three-year terms. Inspector of Elections Amilja Regan of Computershare reported that each director received more than a plurality of the votes cast. The accounting-firm ratification and executive-pay proposal each received affirmative votes from at least a majority of the shares cast.
Kearny Financial had 64.9 million common shares outstanding and eligible to vote as of the Aug. 21, 2026, record date, according to President and Chief Executive Officer Craig Montanaro. A quorum was present at the virtual meeting.
Strategy Focuses on Funding, Efficiency and Growth
Montanaro said the company’s strategy during fiscal 2026 centered on strengthening its franchise, expanding its capabilities and increasing earnings power. Kearny reported approximately $7.7 billion in assets, $5.7 billion in deposits, $5.9 billion in loans and about $800 million in capital as of June 30, 2026. The company operates 40 branches across 12 counties and described itself as a top-10 New Jersey financial institution by assets and deposits.
Among its actions during the year, the company consolidated three underperforming branches and reorganized branch management to place greater emphasis on relationship-building and customer service. It also hired outside sales personnel focused on business development, Montanaro said.
Kearny expanded its deposit-gathering capabilities through several banking verticals:
- Corporate banking, focused on middle-market commercial clients, operating accounts and treasury-management relationships.
- Specialty deposits, including 1031 exchange services, escrow, trust and estate deposits.
- Government banking for municipalities, public agencies, school districts and boards of education.
- Nonprofit and private-education banking, a newer vertical with a treasury-management focus.
Montanaro said the initiatives are intended to improve the company’s core funding profile and build longer-term customer relationships. He noted that investors and analysts are placing increasing attention on banks’ deposit funding and core deposits amid competition from money market funds, brokerages, fintech firms and non-bank financial companies.
Fiscal 2026 Earnings Improved
Kearny reported net income of approximately $36.3 million for fiscal 2026, up about $10.3 million, or 39%, from the prior year. Montanaro attributed the improvement to stronger earning assets, lower wholesale funding and improved pre-tax, pre-provision profitability.
Net interest income rose 15% to approximately $40.3 million in the fourth quarter of fiscal 2026, from roughly $35.8 million in the fourth quarter of fiscal 2025. The company’s net interest margin increased to about 2.26% in the final quarter of fiscal 2026 from roughly 2.0% in the final quarter of fiscal 2025.
Montanaro also highlighted growth in pre-tax, pre-provision earnings measures. Pre-tax, pre-provision earnings per share increased to $0.20 from $0.16, while pre-tax, pre-provision net revenue rose to nearly $12.5 million from $9.9 million.
The company’s total shareholder return for the fiscal year was 55.8%, compared with a 29% return for the KRX TR Bank Index, according to the presentation. Montanaro said Kearny’s dividend yield was around 4%.
Credit Discipline and Technology Investments
Kearny recorded approximately four basis points of net charge-offs during fiscal 2026. Montanaro said the company has maintained conservative underwriting standards through multiple credit cycles. Over the past 20 years, Kearny’s cumulative charge-offs totaled $42.1 million, or roughly $2 million annually, he said.
The company also discussed continuing technology investments through its “The Lab” initiative, which uses robotics process automation and advanced analytics across operational and lending functions. Montanaro said the effort is designed to reduce manual processes, remove bottlenecks and create a more scalable operating model.
Kearny is also developing data analytics intended to provide greater visibility into customer behavior, balances and account activity. Its branches are already using an internal tool that allows employees to query company policies and procedures, while the company continues to work on applications for lending. In addition, Kearny is modernizing its account-opening and lending processes to improve its digital customer experience.
Montanaro said the company’s longer-term objective is to translate stronger customer relationships, specialized banking businesses, balance-sheet optimization and technology-enabled scale into higher earnings and shareholder value.
About Kearny Financial (NASDAQ:KRNY)
Kearny Financial Corp. is the holding company for Kearny Bank, a community-focused financial institution headquartered in Fairfield, New Jersey. The bank provides a range of banking and financial services to individuals, families, businesses and nonprofit organizations.
Kearny Bank's products and services include checking and savings accounts, certificates of deposit, residential mortgages, home equity loans and lines of credit, commercial real estate financing, business loans, construction loans and consumer lending.
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