What the changes say
- Interest-rate, repricing and funding risks are more prominent, with fiscal 2027 loan resets potentially pressuring borrowers and margins.
- Commercial real estate exposure remains central, particularly multifamily properties in New York and New Jersey and their regulatory risks.
- Technology risk now explicitly includes artificial intelligence, automation, third-party providers and broader operational and compliance consequences.
- Goodwill remains $113.5 million, while investment securities and wholesale funding figures declined from the prior year.
What changed since the prior 10-K
New
- New
Changes in market interest rates and the interest rate environment may adversely affect our business, financial condition and results of operations
Mismatched repricing of loans, securities, deposits and borrowings could compress net interest margin, reduce net interest income and lower asset values.
- New
Loan repricing and refinancing risk may adversely affect borrower performance
Fiscal 2027 loan resets and maturities may raise borrowers’ debt costs, causing delinquencies, defaults and weaker asset quality.
- New
In addition, commercial real estate loans generally carry larger balances to single borrowers or related groups of borrowers than one- to four-family mortgage loans, which increases the financial impact of a borrower’s default
Larger commercial real estate loan balances and concentration in New Jersey and New York increase default, local-market and regulatory exposure.
- New
negatively affect net interest income, liquidity and profitability, and require us to offer more competitive deposit rates or seek alternative funding sources
Funding disruptions could force higher deposit rates or alternative funding, limiting loan originations, securities investment, expenses and withdrawal payments.
- New
Cybersecurity threats, technology failures and information security risks could result in operational disruptions, financial losses and reputational harm
Cyberattacks, technology failures, processing errors or third-party service disruptions could interrupt deposits, loan servicing, reporting and other banking operations.
- New
Our use of artificial intelligence, robotic process automation, and other emerging technologies may increase operational, compliance, cybersecurity, and third-party risks
Artificial intelligence and robotic automation may create inaccurate outputs, model, compliance, privacy, fraud and third-party risks affecting controls and customers.
- New
We may be required to recognize goodwill impairment charges in future periods
Impairment of $113.5 million of goodwill could reduce earnings and restrict Kearny Bank’s dividends to Kearny Financial and shareholders.
Dropped
- Dropped
Our business and financial performance are impacted by market interest rates and movements in those rates
General market-rate changes could reduce the spread between interest earned on assets and interest paid on liabilities.
- Dropped
Severe weather could harm our business
- Dropped
Risks associated with system failures, service interruptions or other performance exceptions could negatively affect our earnings
- Dropped
Risks associated with cyber-security could negatively affect our earnings
- Dropped
While 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
- Dropped
Our 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
- Dropped
We could incur future goodwill impairment
Reworded
- 95% rewritten
The performance of our multi-family loans could be adversely impacted by regulation
Adds New York City-specific rent-regulation and tenant-protection risks, including limits on rent increases, cost recovery and property cash flow.
- 92% rewritten
Acts of terrorism, severe weather, public health issues, geopolitical events and other external factors could impact our ability to conduct business
Expands the risk beyond terrorism to severe weather, natural disasters, public-health emergencies, military conflicts, geopolitical tensions and technology infrastructure damage.
Was: Acts of terrorism, public health issues, and geopolitical and other external events could impact our ability to conduct business
- 79% rewritten
A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on the Company
Adds that customers may shift deposits to more attractive investments, cash-management solutions or payment technologies.
- 72% rewritten
Our commercial real estate lending exposes us to additional risk
Now specifically identifies occupancy, rental income and property cash flow as key CRE repayment drivers.
Was: Our commercial lending exposes us to additional risk
- 46% rewritten
A 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
Updates available-for-sale securities to $964.4 million, or 90.0%, from $1.01 billion, or 89.4%.
- 29% rewritten
Inflation has had, and may continue to have a negative effect on our results of operations and financial condition
Notes inflation has fallen but remains above the Federal Reserve’s 2.0% target, and adds rising Company wages and other costs.
- 28% rewritten
We 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
Removes the explicit reference to non-owner-occupied commercial real estate from the examples covered by supervisory concentration guidance.
- 24% rewritten
Our reliance on wholesale funding could adversely affect our liquidity and operating results
Wholesale funding declined to $1.9 billion, or 24.8% of assets, from $2.0 billion, or 26.0%.
All 31 risk factors
Headings as the filing states them, in filing order.
Other
- 01Changes in market interest rates and the interest rate environment may adversely affect our business, financial condition and results of operationsNew
- 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 equity46% rewritten
- 03Loan repricing and refinancing risk may adversely affect borrower performanceNew
- 04If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings will decrease
- 05Our commercial real estate lending exposes us to additional risk72% rewritten
- 06In addition, commercial real estate loans generally carry larger balances to single borrowers or related groups of borrowers than one- to four-family mortgage loans, which increases the financial impact of a borrower’s defaultNew
- 07Our increased commercial and industrial and construction loan originations exposes us to increased credit risk
- 08We 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 affected28% rewritten
- 09We may be required to record impairment charges with respect to our investment securities portfolio
- 10Our investments in corporate and municipal debt securities, subordinated debt securities and collateralized loan obligations expose us to additional credit risks
- 11Our reliance on wholesale funding could adversely affect our liquidity and operating results24% rewritten
- 12A lack of liquidity could adversely affect our financial condition and results of operations and result in regulatory limits being placed on the Company79% rewritten
- 13negatively affect net interest income, liquidity and profitability, and require us to offer more competitive deposit rates or seek alternative funding sourcesNew
- 14Public funds deposits are a notable source of funds for us and a reduced level of those deposits may hurt our profits and liquidity position
- 15Changes in economic conditions, in particular an economic slowdown in the markets we operate in, could materially and negatively affect our business
- 16Inflation has had, and may continue to have a negative effect on our results of operations and financial condition29% rewritten
- 17Interruption of our customers’ supply chains and federal funding could negatively impact their business and operations and impact their ability to repay their loans
- 18Acts of terrorism, severe weather, public health issues, geopolitical events and other external factors could impact our ability to conduct business92% rewritten
- 19We face intense competition from other financial services and financial services technology companies, and competitive pressures could adversely affect our business or financial performance
- 20Cybersecurity threats, technology failures and information security risks could result in operational disruptions, financial losses and reputational harmNew
- 21Our use of artificial intelligence, robotic process automation, and other emerging technologies may increase operational, compliance, cybersecurity, and third-party risksNew
- 22We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations
- 23The performance of our multi-family loans could be adversely impacted by regulation95% rewritten
- 24Changes to tax laws and regulations could adversely affect our financial condition or results of operations
- 25We may be required to recognize goodwill impairment charges in future periodsNew
- 26We cannot guarantee that our allocation of capital to various alternatives will enhance long-term stockholder value
- 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
- 28Because the nature of the financial services business involves a high volume of transactions, we face significant operational risks
- 29Our risk management framework may not be effective in mitigating risk and reducing the potential for significant losses
- 30We could be adversely affected by failure in our internal controls
- 31The inability to attract and retain key personnel could adversely affect our business
Other Kearny Financial 10-Ks
- FY2025 10-K risk factors31 risks
Kearny Financial relies heavily on net interest income, commercial real estate lending, and wholesale funding sources. Operations are sensitive to interest rate volatility, regional economic conditions in New Jersey, and cybersecurity threats. The risk profile is dominated by traditional banking credit risks and regulatory compliance.
Filed Aug 21, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.