Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2015)
20 slides from Kearny Financial's shareholder meeting presentation, Oct 29, 2015
Slide 1: Annual Meeting of Shareholders
Exhibit 99.2 Annual Meeting of Shareholders Nasdaq: KRNY October 2015
Slide 2: Forward Looking Statements
Forward Looking Statements 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 inv
Slide 3: Overview of Kearny Financial Corp
Overview of Kearny Financial Corp (dollars in millions) as of June 30, 2015 Total Assets $4,237.2 Total Deposits $2,465.7 Total Loans $2,102.9 Corporate Headquarters Fairfield, NJ Branches 42 Market Capitalization¹ $1,112.0 • Founded in 1884 th • 6 Largest New Jersey based deposit franchise – 42 bra
Slide 4: Kearny Bank Mission Statement
Kearny Bank Mission Statement Kearny Bank is dedicated to providing professional service and sound financial advice to our client and shareholder base. This is successfully accomplished through deep-rooted guiding principles of strong values consisting of ethics and integrity, and by giving back to
Slide 5: The New Kearny Logo
The New Kearny Logo Brand Logo Flag People Our significant stakeholders, including employees, current and future customers, stockholders, and the communities we serve. Relationships Delivery of superior service, a keen understanding of clients’ needs, and a welcoming environment has resulted in high
Slide 6: Kearny Value Creation Post-Conversion
Kearny Value Creation Post-Conversion • Optimization of asset mix – Continue to increase commercial real estate lending – Continue to increase commercial business lending – Reinvest cashflows from the investment portfolio into loans while still maintaining a diverse composition and allocation to red
Slide 7: Attractive Market Demographics
Attractive Market Demographics • Attractive markets • Weighted average median household • Part of the largest income in Kearny MSA¹ in the U.S franchise counties was • Opportunities still exist $74,231 vs. $55,551 for organic growth in median household existing branch footprint income nationwide – H
Slide 8: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) $2,500 $2,000 $1,500 $1,000 $2,103 $1,741 $1,268 $1,284 $1,361 $500 $1,014 $0 2010FY 2011FY 2012FY 2013FY 2014FY 2015FY Total Loans • Loan growth focus: – Expand upon expertise in commercial real estate, C&I, m
Slide 9: Loan Portfolio Composition
Loan Portfolio Composition MRQ Loan Portfolio • As of June 30, 2015 KRNY had $2.1 billion in net loans, comprising 49.3% of total 1-4 Family -28.17% assets Multifamily - 34.64% CRE - 27.62% • Kearny’s yield on loans was 4.14% for the C&D - 0.27% 2015 fiscal year Consumer - 4.56% Commercial -4.73% •
Slide 10: Commercial Lending Success Continues
Commercial Lending Success Continues 9
Slide 11: Asset Quality & Reserves
Asset Quality & Reserves NPAs / Assets¹ Loan Loss Reserves/ Gross Loans 3.0% 2.0% 2.5% 2.25% 1.50% 1.5% 1.38% 1.35% 1.98% 2.0% 1.24% 1.41% 0.95% 1.5% 1.0% 1.18% 1.34% 0.98% 0.93% 1.0% 1.18% 0.79% 0.80% 0.71% 0.74% 0.92% 0.86% 0.5% 0.5% 0.64% 0.0% 0.0% 2011FY 2012FY 2013FY 2014FY 2015FY 2011FY 2012FY
Slide 12: Securities Portfolio
Securities Portfolio Yield on Securities MRQ Securities Portfolio 3.50% 3.15% 3.00% 2.69% 2.50% 2.16% 2.08% 2.08% U.S. Agency Obligations -10.50% Municipal Bonds -7.14% 2.00% CLO & ABS Securities -15.11% Corporate Bonds - 11.36% 1.50% TPS - 0.54% Agency MBS -55.33% 1.00% Non-Agency MBS -0.01% 0.50%
Slide 13: Deposit Composition
Deposit Composition MRQ Deposit Portfolio • Kearny Financial Corp. had $2.47 billion in deposits as of June 30, 2015 Noninterest bearing deposits - 8.86% – The quarter ended June 30, 2015’s cost of Interest bearing DDA - total deposits was 0.67% down from 1.06% 29.38% for the quarter ended June 30,
Slide 14: Improving Performance Metrics
Improving Performance Metrics Profitability Efficiency Ratio $12,000 0.40% 90.00% $10,188 $10,000 0.35% 85.00% 83.02% 0.32% $8,000 0.32% 0.30% 80.00% 77.45% 76.52% 75.83% $6,506 $6,000 $5,629 0.25% 75.00% $5,078 $4,000 0.20% 70.00% $2,000 0.18% 0.15% 65.00% 0.19% $0 0.10% 60.00% 2012FY 2013FY 2014FY
Slide 15: Maintenance of Strong Capital Ratios
Maintenance of Strong Capital Ratios Tangible Common Equity to Tangible Assets Tier 1 Leverage Ratio 30.0% 30.0% 25.8% 25.6% 25.0% 25.0% 20.0% 20.0% 15.0% 12.0% 12.1% 11.3% 11.0% 15.0% 13.5% 13.5% 11.8% 11.3% 10.0% 10.4% 10.8% 10.5% 9.4% 9.9% 10.0% 10.5% 5.0% 10.0% 9.9% 9.9% 9.2% 5.0% 0.0% 2011FY 20
Slide 16: M&A History and Strategy
M&A History and Strategy Seller Completed Type Assets Branches ($000) st 1 Bergen Bancorp March 31, 1999 Thrift 300,755 4 Pulaski Bancorp, Inc. MHC October 18, 2002 Thrift 237,596 6 West Essex Bancorp July 1, 2003 Thrift 390,333 8 Central Jersey Bancorp November 30, 2010 Bank 571,295 13 Atlas Bank J
Slide 17: 2015 Strategic Review: A Stronger Kearny Post-Conversion
2015 Strategic Review: A Stronger Kearny Post-Conversion • Robust capital to support continued growth – The second step offering allows Kearny to pursue organic and strategic growth opportunities that will continue Kearny’s historically strong loan growth • Eliminated uncertainties associated with t
Slide 18: 2016 Strategic Focus
2016 Strategic Focus • Traditional Relationship Banking Focus – Growth/ Diversification of loan mix: CRE/Multifamily/C&I/SBA/Residential/Consumer – Grow funding thru traditional deposit sources utilizing a technological focus: mobile banking/on-line account opening /P2P/cash management/RDC • New Opp
Slide 19: Comparative Stock Price Performance
Comparative Stock Price Performance Stock Price Performance since January 1, 2012 KRNY KRNY Peers NASDAQ Bank 90% 80% 73.3% 70% 72.8% 60% 50% 40% 30% 30.8% 20% 10% 0% (10%) (20%) 1) Peer group defined in KRNY’s 2015 conversion offering prospectus and includes companies with the following tickers: BK
Slide 20: Peer Group Valuation Comparison
Peer Group Valuation Comparison ($ in thousands) Total Price/ Peer Company Ticker Headquarters Assets TBV Capitol Federal Financial, Inc. CFFN Topeka, KS $9,131 122% Provident Financial Services, Inc. PFS Iselin, NJ 8,751 181% Northwest Bancshares, Inc. NWBI Warren, PA 7,865 140% United Financial Ba
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