Form 4: Kearny Financial EVP Gains RSUs, Sells Shares

Kearny Financial's EVP and CLO, Patrick M. Joyce, acquired 12,787 restricted stock units and disposed of 3,663 shares for tax purposes.

Summary

• Patrick M. Joyce, Executive Vice President and Chief Legal Officer of Kearny Financial Corp. (KRNY), reported changes in his beneficial ownership of company securities.
• Acquired 12,787 shares of common stock in the form of restricted stock units (RSUs) on August 7, 2025, with a grant price of $0.
• These newly acquired RSUs are scheduled to vest at a rate of 33% per year, commencing on August 7, 2026.
• Disposed of 3,663 shares of common stock on August 7, 2025, at a price of $5.86 per share, which is typically for tax withholding related to equity vesting.
• Following these transactions, direct beneficial ownership of common stock is 58,365 shares.
• Indirect beneficial ownership includes 63,341 shares held through an Employee Stock Ownership Plan (ESOP), 35,258 shares through a 401(k) plan, and 2,320 shares through a Benefit Equalization Plan (BEP).
• Holds 150,000 stock options with an exercise price of $15.35, which became exercisable on December 1, 2017, and are set to expire on December 1, 2026.

Sentiment

Score: 6

Explanation: The filing details routine insider transactions. The grant of restricted stock units is a positive for executive alignment, while the disposition for tax purposes is a neutral, expected event. No significant positive or negative financial or operational news is presented.

Positives

• The grant of 12,787 restricted stock units to a key executive aligns management's long-term interests with shareholder value, as these units vest over a future period.

Negatives

• The disposition of 3,663 shares, even if for tax purposes, results in a reduction of the executive's direct common stock holdings.

Future Outlook

The newly acquired 12,787 restricted stock units are scheduled to vest at a rate of 33% per year, commencing on August 7, 2026, indicating future equity compensation and potential share accumulation for the executive.

Industry Context

This filing reflects routine executive compensation practices within the financial services industry, where restricted stock units are granted to align executive incentives with long-term company performance, and shares are often withheld or sold to cover tax obligations upon vesting.

Comparison to Industry Standards

• The grant of restricted stock units and subsequent share disposition for tax purposes are standard practices in executive compensation across various industries, including financial services, aiming to incentivize long-term performance and manage tax liabilities. This aligns with common compensation structures seen in peer financial institutions.

Stakeholder Impact

• Shareholders: The grant of restricted stock units to a key executive can be viewed positively as it further aligns management's interests with long-term shareholder value creation.
• Employees: This filing reflects standard executive compensation practices, which may indirectly influence broader compensation strategies within the company.

Next Steps

• Vesting of 12,787 restricted stock units at 33% per year starting August 7, 2026.
• Continued vesting of previously granted restricted stock units on August 7, 2023, 2024, and 2025.

Key Dates

Recommendation

This Form 4 details routine executive compensation activities, including the grant of restricted stock units and the disposition of shares for tax purposes. It does not present new financial performance data or strategic shifts that would warrant a change in investment recommendation. The RSU grant aligns executive interests with shareholders, which is a neutral to slightly positive factor, but not enough to change a fundamental view on the stock.

Keywords

Kearny Financial, KRNY, Form 4, Insider Trading, Restricted Stock Units, Stock Options, Executive Compensation, Beneficial Ownership