Kearny Financial (KRNY) risk factors, FY2025 10-K

Other

1. 01Our business and financial performance are impacted by market interest rates and movements in those rates
2. 02A significant portion of our assets consists of investment securities, which generally yield less than loans and are classified as available for sale, potentially contributing to increased volatility in our equity
3. 03If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings will decrease
4. 04Our commercial lending exposes us to additional risk
5. 05Our increased commercial business and construction loan originations exposes us to increased credit risk
6. 06We have a significant concentration in commercial real estate loans. If our regulators were to curtail our commercial real estate lending activities, our earnings and/or dividend paying capacity could be adversely affected
7. 07We may be required to record impairment charges with respect to our investment securities portfolio
8. 08Our investments in corporate and municipal debt securities, subordinated debt securities and collateralized loan obligations expose us to additional credit risks
9. 09Our reliance on wholesale funding could adversely affect our liquidity and operating results
10. 10A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on the Company
11. 11Public funds deposits are a notable source of funds for us and a reduced level of those deposits may hurt our profits and liquidity position
12. 12Changes in economic conditions, in particular an economic slowdown in the markets we operate in, could materially and negatively affect our business
13. 13Inflation has had, and may continue to have a negative effect on our results of operations and financial condition
14. 14Severe weather could harm our business
15. 15Interruption of our customers’ supply chains and federal funding could negatively impact their business and operations and impact their ability to repay their loans
16. 16Acts of terrorism, public health issues, and geopolitical and other external events could impact our ability to conduct business
17. 17We face intense competition from other financial services and financial services technology companies, and competitive pressures could adversely affect our business or financial performance
18. 18Risks associated with system failures, service interruptions or other performance exceptions could negatively affect our earnings
19. 19Risks associated with cyber-security could negatively affect our earnings
20. 20While our Board of Directors takes an active role in cybersecurity risk tolerance, we rely to a large degree on management and outside consultants in overseeing cybersecurity risk management
21. 21Our adoption of artificial intelligence tools and adoption by our third-party vendors and service providers may increase the risk of errors, omissions, unfair treatment or fraudulent behavior by our employees, clients, or counterparties, or other third parties
22. 22We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations
23. 23The performance of our multi-family loans could be adversely impacted by regulation
24. 24Changes to tax laws and regulations could adversely affect our financial condition or results of operations
25. 25We could incur future goodwill impairment
26. 26We cannot guarantee that our allocation of capital to various alternatives will enhance long-term stockholder value
27. 27Our acquisitions and the integration of acquired businesses, may not result in all of the cost savings and benefits anticipated, which could adversely affect our financial condition or results of operations
28. 28Because the nature of the financial services business involves a high volume of transactions, we face significant operational risks
29. 29Our risk management framework may not be effective in mitigating risk and reducing the potential for significant losses
30. 30We could be adversely affected by failure in our internal controls
31. 31The inability to attract and retain key personnel could adversely affect our business