Kearny Financial is the holding company for Kearny Bank, a community bank operating in New Jersey and New York. Kearny Bank provides traditional banking services through a branch network, primarily gathering deposits from individuals and businesses to fund real estate-secured loans. The loan portfolio includes multi-family mortgages, residential mortgages, and nonresidential commercial real estate, alongside commercial and industrial (C&I) and construction loans. Kearny Bank’s business model depends on generating a net interest margin by borrowing through short-term deposits and wholesale funding, such as FHLB advances, while lending at longer-term rates. Kearny Bank also maintains a mortgage banking operation that sells residential loans into the secondary market and uses interest rate swaps to hedge funding positions. Kearny Financial is executing a strategy to transition Kearny Bank into a commercial banking franchise. This involves expanding C&I lending and shifting the funding mix from higher-cost certificates of deposit toward lower-cost commercial operating and consumer transaction accounts. To support this shift, Kearny Financial is investing in digital banking technology and rationalizing the branch network. Kearny Financial uses capital to fund loan growth, pay dividends, and repurchase shares, while remaining open to potential acquisitions of other depository institutions.