Kearny Financial is a cheap regional bank (forward P/E 9.4x) with solid margins and recent insider buying, but it has missed EPS estimates in 3 of the last 4 quarters and trades 2.5% above the analyst target, leaving little upside.
Thesis pillars
- Strong Margins Weak Returns↓Deteriorating
- Cheap Bank Valuation↓Deteriorating
- Repeated Earnings Misses↑Improving
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Oct 24, 2026, based on the 10-K filed Aug 21, 2026
Kearny Financial (KRNY) Stock Analysis
Range Bound setup · Inst Constrain edge
Financial Services · Banks - Regional
Sell if holding. Analyst target reached at $9.22 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8).
Kearny Financial is the holding company for Kearny Bank, a New Jersey-chartered savings bank with 40 branch offices in New Jersey and New York. It gathers deposits and lends mainly on commercial and residential real estate, with $5.88 billion of loans at June 30, 2026, of which... Read more
Sell if holding. Analyst target reached at $9.22 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: RSI 51 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 83d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About Kearny Financial
About Kearny Financial
Kearny Financial held $5.88 billion of total loans at June 30, 2026, of which multi-family mortgages were $2.50 billion, or 42.5%, and nonresidential mortgages 17.3%. The holding company owns Kearny Bank, a nonmember New Jersey-chartered savings bank headquartered in Fairfield, New Jersey with 40 branch offices across Bergen, Essex, Hudson, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union counties in New Jersey and Kings and Richmond counties in New York. The Bank is primarily regulated by the New Jersey Department of Banking and Insurance and the FDIC, and the Federal Reserve oversees the holding company.
Kearny earns most of its income from the spread between interest on loans and securities and interest paid on deposits and borrowings. Loans are split among multi-family, nonresidential, commercial and industrial, construction, one- to four-family residential and home equity categories, with residential loans at 30.4% of the book and commercial and industrial loans at 3.8%. The securities portfolio had a fair value of approximately $1.06 billion, with 90.0% classified as available for sale. Loan originations totaled $638.7 million in fiscal 2026, and a mortgage banking platform recognized $932,000 of gains on the sale of $128.2 million of loans. Funding relies on deposits, including $638.8 million of New Jersey public funds deposits (11.2% of total deposits), plus wholesale funding of $1.9 billion. Management's strategy targets more commercial and industrial and owner-occupied commercial real estate lending and relationship-based deposits.
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Commercial real estate concentration and loan repricing are the clearest credit exposures. Non-owner occupied commercial real estate equaled 515% of the Bank's total risk-based capital at June 30, 2026, well above the 300% level at which interagency guidance may trigger added scrutiny, though that guidance also looks for 50% growth over 36 months and the portfolio has declined over that period. A significant portion of the loan book is scheduled to reset or mature during fiscal 2027, and many of those loans were originated in calendar 2021 and 2022 at below-market rates, so borrowers may face higher debt service. Lending focuses on New Jersey and New York, where changes to rent regulations or foreclosure laws may weigh on multi-family borrowers.
See also: Financial Services · Banks - Regional
From Kearny Financial's most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated 2026-10-29Recent Developments — Kearny Financial
Latest news
- NEWS Kearny Financial stockholders elect directors and approve auditor at annual meeting - Investing.com Nigeria — Investing.com Nigeria neutral
- NEWS Kearny Financial stockholders elect directors and approve auditor at annual meeting - Investing.com Canada — Investing.com Canada neutral
- NEWS Kearny Financial stockholders elect directors and approve auditor at annual meeting - Investing.com Australia — Investing.com Australia neutral
- NEWS Kearny Financial stockholders elect directors and approve auditor at annual meeting - Investing.com — Investing.com neutral
- NEWS Kearny Financial stockholders elect directors and approve auditor at annual meeting - Investing.com India — Investing.com India neutral
Generated 2026-10-29T11:20:25Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMloan_portfoliomulti-family mortgage loans43%10-K Item 1: 'At June 30, 2026, multi-family mortgage loans totaled $2.50 billion, or 42.5% of our loan portfolio'
- MEDIUMloan_portfolionon-owner occupied commercial real estate10-K Item 1A: 'Our level of non-owner occupied commercial real estate equaled 515% of Bank total risk-based capital at June 30, 2026'
- MEDIUMGeographicNew Jersey and New York10-K Item 1: 'Our lending is concentrated in New Jersey and New York'
- LOWloan_portfoliopublic funds deposits11%10-K Item 1A: '$638.8 million, or 11.2% of our total deposits, consisted of public funds deposits from local government entities in the state of New Jersey'
- MEDIUMregulatoryNew Jersey Department of Banking and Insurance10-K Item 1: 'the Bank is primarily regulated by the New Jersey Department of Banking and Insurance'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $9.22 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: RSI 51 mid-range, Bollinger mid-band. Prior stop was $8.80. Score 5.1/10, moderate confidence.
Analyst target $8.92 reached (−3.2% from $9.22); no take-profit level is published. Prior stop was $8.80. Stop-loss: $8.80.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8); Consecutive earnings misses (3).
Kearny Financial trades at a P/E of 15.9 (forward 9.7). TrendMatrix value score: 7.8/10. Verdict: Sell.
9 analysts cover KRNY with a consensus score of 4.0/5. Average price target: $11.
What does Kearny Financial do?Kearny Financial is the holding company for Kearny Bank, a New Jersey-chartered savings bank with 40 branch offices in...
Kearny Financial is the holding company for Kearny Bank, a New Jersey-chartered savings bank with 40 branch offices in New Jersey and New York. It gathers deposits and lends mainly on commercial and residential real estate, with $5.88 billion of loans at June 30, 2026, of which multi-family mortgages were 42.5%. Earnings come mostly from net interest income, and the strategy emphasizes commercial banking relationships and core deposits.