KRNY — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-08-21

• Our objective is to enhance long-term shareholder value by growing a higher-performing commercial banking franchise supported by relationship-based deposits, disciplined balance sheet management, technology-enabled operating efficiencies and strong risk management practices. We seek to leverage our …

• We continue to focus on expanding our commercial banking franchise by growing relationships with small and middle-market businesses and professionals. We seek to increase commercial loan production across targeted asset classes, including commercial and industrial ("C&I") loans and owner-occupied co…

• A core element of our strategy is to attract and retain stable, relationship-based deposits that support long-term growth and funding stability. We remain focused on growing commercial operating accounts and consumer transaction accounts while expanding existing customer relationships through person…

• Technology continues to play a critical role in our growth strategy and operating model. We are committed to investing in digital banking, process automation, data analytics, artificial intelligence and other emerging technologies that enhance the client experience, improve employee productivity and…

• We seek to enhance long-term profitability through disciplined balance sheet management and strategic loan portfolio growth. Our lending strategy emphasizes higher-return commercial and consumer loan categories, including C&I loans, owner-occupied commercial real estate loans and home equity product…

Text removed vs the prior filing · source: 10-K · 2025-08-21

• We have evolved our business model from that of a traditional thrift into that of a full-service community bank. This evolution has been accomplished by growing our commercial loans and deposits, expanding our product and service offerings, de-novo branching and the acquisition of other financial in…

• We remain focused on acquiring and retaining core non-maturity deposit accounts while deepening customer relationships through personalized, high-touch service. Our approach emphasizes building long-term client trust and loyalty. To further grow our base of core deposits, we are expanding our busine…

• We remain focused on enhancing the diversification of our loan portfolio by originating higher-yielding commercial and industrial (“C&I”) loans, owner-occupied commercial real estate loans, and home equity lines of credit (“HELOCs”). These efforts are designed to improve net interest margins and bet…

• Our commitment to digital innovation remains a strategic priority. Over the past year, we have continued to invest significant resources into enhancing both our internal infrastructure and client-facing technology platforms. Our cloud-based, best-in-class digital banking and online account opening p…

• As demonstrated by the June 30, 2025 Common Equity Tier 1 Capital ratios of the Company and the Bank of 14.49% and 13.61%, respectively, we continue to maintain capital levels well above both regulatory minimums and our internal capital adequacy guidelines, and we remain committed to sustaining this…

Text added vs the prior filing · source: 10-K · 2026-08-21

• Changes in market interest rates and the interest rate environment may adversely affect our business, financial condition and results of operations.

• We derive our income mainly from the difference or spread between the interest earned on loans, securities and other interest-earning assets and interest paid on deposits, borrowings and other interest-bearing liabilities. As such, our earnings are highly sensitive to changes in market interest rate…

• In particular, if funding costs increase more rapidly than asset yields, or if asset yields decline more rapidly than funding costs, our net interest margin and net interest income could be adversely affected. Changes in interest rates may also affect the economic value of our assets, liabilities an…

• We are unable to predict changes in market interest rates, which are affected by many factors beyond our control, including inflation, unemployment, money supply, governmental policy, monetary policy actions of the Federal Open Market Committee ("FOMC"), the imposition of tariffs, domestic and inter…

• Loan repricing and refinancing risk may adversely affect borrower performance.

Text removed vs the prior filing · source: 10-K · 2025-08-21

• Our business and financial performance are impacted by market interest rates and movements in those rates.

• We derive our income mainly from the difference or spread between the interest earned on loans, securities and other interest-earning assets and interest paid on deposits, borrowings and other interest-bearing liabilities. In general, the larger the spread, the more we earn. When market rates of int…

• Beginning in March 2022, in response to rising inflation, the Federal Open Market Committee (the “Committee”) initiated a series of systematic rate hikes, raising the target federal funds rate from 0.00%–0.25% to a peak of 5.25%–5.50% by July 2023. In the second half of 2024, the Committee began eas…

• Changes in interest rates can affect the average life of loans and securities. For example, a reduction in interest rates generally results in increased prepayments of loans and mortgage-backed securities, as borrowers refinance their debt in order to reduce their borrowing cost. In addition, intere…

• A significant portion of our loan portfolio has interest rates that will reset over the next 24 months. In addition, a significant portion of our portfolio will mature over the next 24 months. Applicable increases in interest rates could harm our borrowers’ abilities to repay their loans.

Text added vs the prior filing · source: 10-K · 2026-08-21

• Net Loans Receivable. Net loans receivable increased by $63.1 million, or 1.1%, to $5.83 billion at June 30, 2026 from $5.77 billion at June 30, 2025. The increase reflected growth across several lending categories, including commercial and industrial loans and construction loans, partially offset b…

• Nonperforming Assets. Nonperforming assets increased $7.8 million to $53.4 million, or 0.70% of total assets, at June 30, 2026 from $45.6 million, or 0.59% of total assets, at June 30, 2025. The increase in nonperforming assets was largely attributable to two foreclosed properties with an aggregate …

• Allowance for Credit Losses. At June 30, 2026, the ACL totaled $45.5 million, or 0.77% of total loans, reflecting a decrease of $695,000 from $46.2 million, or 0.79% of total loans, at June 30, 2025. The decrease was largely attributable to net charge-offs of $2.4 million, partially offset by a prov…

• Stockholders’ Equity. Stockholders’ equity increased by $20.7 million to $766.7 million at June 30, 2026 from $746.0 million at June 30, 2025. The increase in stockholders’ equity during the year ended June 30, 2026 largely reflected net income of $36.3 million and $9.1 million in after-tax other co…

• Net Income. Net income for the year ended June 30, 2026 was $36.3 million, or $0.57 per diluted share, an increase of $10.2 million from net income of $26.1 million, or $0.42 per diluted share, for the year ended June 30, 2025. The increase in net income reflected increases in net interest income an…

Text removed vs the prior filing · source: 10-K · 2025-08-21

• Goodwill. Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acq…

• To test goodwill for impairment we elected to perform a goodwill impairment assessment during the fourth quarter of the year ended June 30, 2025. The quantitative goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, including goodwill. If the est…

• The quantitative assessment of goodwill for our single reporting unit was performed utilizing a discounted cash flow analysis (“income approach”) and estimates of selected market information (“market approaches”). The result of the income approach was weighted at 70% and the results of the market ap…

• Net Loans Receivable. Net loans receivable increased by $78.9 million, or 1.4%, to $5.77 billion at June 30, 2025 from $5.69 billion at June 30, 2024. Detail regarding the change in the loan portfolio is presented below:

• Nonperforming loans. Nonperforming loans increased by $5.7 million to $45.6 million, or 0.79% of total loans, at June 30, 2025 from $39.9 million, or 0.70% of total loans, at June 30, 2024. The increase in nonperforming loans was largely attributable to an increase of $8.3 million in nonperforming m…

Text removed vs the prior filing · source: 10-K · 2025-08-21

• alter the projected cash flows of our interest-earning assets and interest-costing liabilities and the associated present values thereof.