Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q2 FY2023 Earnings Presentation
13 slides from Kearny Financial's earnings presentation, Jan 26, 2023
Slide 1: Investor Presentation Second Quarter Fiscal 2023
I N V E S T O R P R E S E N TAT I O N SECOND QUARTER FISCAL 2023 JANUAR Y 26, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements 2
Slide 3: Kearny Financial Corp.
Kearny Financial Corp. NASDAQ: KRNY Market Cap: $706.9 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 45 full-service branches2 in 12 counties throughout New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of Janu
Slide 4: 138 Years of Serving our Communities and Clients
138 Years of Serving our Communities and Clients 4 4
Slide 5: Financial Highlights
Financial Highlights GAAP Reported Profitability and Performance Ratios 2Q23 1Q23 2Q22 ($ in millions, except per share data) Net Income $2.0 $16.5 $18.8 Earnings per share $0.03 $0.25 $0.26 Net Interest Income $44.8 $48.5 $48.7 Net Interest Margin 2.38% 2.69% 2.96% Return on Average Assets 0.10% 0.
Slide 6: Equity & Capitalization
Equity & Capitalization Equity Capitalization Level Regulatory Capital Ratios1,2 13.78% 14.00% 13.14% 13.14% 13.85% 11.27% 11.50% 12.93% 11.58% 11.09% 9.18% 9.49% 10.53% 11.21% 10.33% 9.06% 8.61% 8.16% 2Q22 3Q22 4Q22 1Q23 2Q23 Tier 1 Common Equity Tier 1 Risk-Based Total Risk-Based Leverage Tier 1 C
Slide 7: Earnings Performance
Earnings Performance Earnings per Share Net Income ($ millions) $18.8 $0.26 $16.5 $0.25 $0.03 $2.0 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Return on Average Assets (ROAA) Return on Average Tangible Equity (ROATE) 1.05% 0.85% 7.46% 7.38% 0.10% 0.90% 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Source: Company Filings 7 7
Slide 8: Deposits
Deposits Deposit Composition1 Deposit Growth ($ millions) $6,108 $5,971 $5,862 10.9% $5,454 $5,529 $683 22.7% $654 $651 $605 $622 $2,266 $2,382 $2,316 QTD C ost $2,107 $2,155 of Deposits 38.8% 1.37% 12.5% $1,053 $983 $902 $1,088 $1,089 $797 $747 $469 $541 $773 15.1% $1,185 $1,122 $1,116 $1,263 $1,35
Slide 9: Investment Securities
Investment Securities Securities Composition1 Securities Balance & Yield Trend 1.3% ($ millions) 3.43% 10.1% 2.74% 1.99% 2.22% 1.90% 26.7% 50.9% $1,644 $1,648 $1,462 $1,379 $1,440 11.0% Corporate Bonds CLO 2Q22 3Q22 4Q22 1Q23 2Q23 2 ABS Student Loans Agency MBS Municipal Bonds 1 For the quarter ende
Slide 10: Portfolio Lending
Portfolio Lending Loan Composition1 Loan Growth Geographic Distribution2 Other ($ millions) 3.0% 4.2% 3.1% Pennsylvania $6,001 5.3% $5,676 $5,437 $5,025 New York $4,849 $1,017 (Ex. Brooklyn) 16.9% 28.7% $1,041 17.2% $1,020 $1,026 $1,086 QTD Yield $2,852 $2,409 $2,570 on Loans $2,076 Brooklyn $2,007
Slide 11: Asset Quality
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 0.15% 1.40% 0.10% 1.19% 0.10% 0.08% 1.20% 1.10% 1.01% 0.98% 0.05% 0.03% 1.00% 0.01% 0.04% 0.76% 0.00% 0.80% -0.05% 0.60% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Non-Performing Loans1 Allowance for Credit Los
Slide 12: M&A History and Strategy
M&A History and Strategy Experienced and disciplined acquirer and integrator Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous markets Cultural compatibility Focus on limiting tangible book value dil
Slide 13: Select Technology Partners
Select Technology Partners 13 13