Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q2 2021 Earnings Presentation
18 slides from Kearny Financial's earnings presentation, Feb 19, 2021
Slide 1: Investor Presentation Second Quarter Fiscal 2021
Investor Presentation Second Quarter Fiscal 2021 Company LOGO Exhibit 99.1
Slide 2: Presenters
Eric B. Heyer Senior Executive Vice President and Chief Operating Officer Keith Suchodolski Executive Vice President and Chief Financial Officer Craig L. Montanaro Director, President and Chief Executive Officer 2 Presenters Company LOGO
Slide 3: Forward Looking Statements
3 This presentation may include certain “forward-looking statements,” which are made in good faith by Kearny Financial Corp. (the “Company”) pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and unc
Slide 4: Non-GAAP financial information
4 This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these
Slide 5: Company Overview
5 NASDAQ: KRNY Market Cap: $879.1 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 50 full-service branches2 in 12 counties throughout northern and central New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of Janu
Slide 6: Second Quarter Highlights
6 Second Quarter Highlights $7.3 billion in total assets $4.8 billion in total loans $5.3 billion in total deposits $1.1 billion in total equity Net income of $16.9 million, or $0.20 per share Core non-maturity deposit growth of $272.6 million, or 8.9% ROAA of 0.92%, ROTCE of 7.52% Efficiency ratio
Slide 7: Capital Strength
7 Capital Strength Tier 1 Leverage Ratio Total Risk-Based Capital Ratio Peer group includes BDGE, BRKL, BMTC, CLBK, CNOB, DCOM, FLIC, FFIC, LBAI, EBSB, NFBK, PGC, STBA, TMP, TRST Source: S&P Global Market Intelligence & Company Filings Robust capital levels support growth and capital management acti
Slide 8: Capital Management
8 Capital Management Capital Returned to Stockholders Since FY2016, over $650 million of capital returned to stockholders via dividends and share repurchases Repurchased 4.5 million shares during the quarter at an average price of $10.14 per share, or 98.2% of 12/31/20 tangible book value Additional
Slide 9: Earnings Performance
9 Earnings Performance Net Income & Return on Assets1 Earnings per Share1 1) Although management believes core net income, EPS and ROAA, which are non-GAAP measures, are useful to investors by providing a greater level of understanding of its business, they should not be considered a substitute for
Slide 10: Deposits
10 Deposits Consolidated 12 branches in 18 months while shifting the deposit base towards lower cost core deposit relationships Deposit Composition1 Deposit Growth 1 As of and for the three-month period ended December 31, 2020 Source: S&P Global Market Intelligence & Company Filings Company LOGO Cha
Slide 11: Retail Certificates of Deposit
11 Retail Certificates of Deposit Retail Certificates of Deposit by Maturity1 1 As of December 31, 2020. Excludes $308 million of wholesale certificates of deposits. Source: Company Filings Ample opportunity exists for continued reduction in retail CD cost of funds Company LOGO Chart
Slide 12: Mortgage Banking
12 Mortgage Banking Residential 1-4 Family Loans Sold Source: Company Filings Company LOGO Chart
Slide 13: Portfolio Lending
13 Portfolio Lending Loan Portfolio Composition1 Geographic Distribution1 1 As of and for the three-month period ended December 31, 2020 Source: S&P Global Market Intelligence & Company Filings Loan-to-Value by Real Estate Secured Segment1 Strategy designed to grow and diversify the loan portfolio;
Slide 14: COVID-19 Impact
14 COVID-19 Impact 1 Includes loans acquired in conjunction with the Company’s acquisition of MSB on July 10, 2020 Source: Company Filings COVID Exposed Loan Segments COVID-Related Loan Deferments Commercial loans: Multi-family Mortgage Nonresidential mortgage Commercial business Total commercial lo
Slide 15: Asset Quality
15 Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 1 As of December 31, 2020; amounts shown in millions 2 The Company adopted CECL methodology effective FY 2021 Q1 Source: S&P Global Market Intelligence & Company Filings Non-Performing Loans1 Allowance for Credit L
Slide 16: M&A History and Strategy
16 M&A History and Strategy Experienced acquirer and integrator, having successfully completed 7 whole-bank acquisitions over the past 20 years Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous marke
Slide 17: Appendix A: Reconciliation of GAAP to Non-GAAP
17 Non-GAAP Reconciliation Company logo Appendix A: Reconciliation of GAAP to Non-GAAP (Dollars in Thousands, For the quarter ended| For the quarter ended | For the six-months ended Except Per Share Data) Core net income: Net Income (GAAP) Non-recurring transactions - net of tax Bargain Purchase Gai
Slide 18: Second Quarter Fiscal 2021
Investor Presentation Second Quarter Fiscal 2021 Company LOGO Chart Company logo