Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2020)
29 slides from Kearny Financial's shareholder meeting presentation, Oct 22, 2020
Slide 1: Annual Meeting of Stockholders October 22, 2020
Annual Meeting of Stockholders October 22, 2020 10:00 AM
Slide 2: Welcome and Introductions
Welcome and Introductions Craig L. Montanaro Director, President and Chief Executive Officer
Slide 3: Board of Directors
John J. Mazur, Jr., Chairman Theodore J. Aanensen Raymond E. Chandonnet John N. Hopkins Catherine A. Lawton Joseph P. Mazza John F. McGovern Craig L. Montanaro Leopold W. Montanaro Christopher Petermann Charles J. Pivirotto John F. Regan Board of Directors
Slide 4: Executive Officers
Executive Officers Eric B. Heyer Senior Executive Vice President and Chief Operating Officer Keith Suchodolski Executive Vice President and Chief Financial Officer Patrick M. Joyce Executive Vice President and Chief Lending Officer
Slide 5: Executive Officers
Anthony V. Bilotta, Jr. Executive Vice President and Chief Banking Officer Thomas D. DeMedici Executive Vice President and Chief Credit Officer John V. Dunne Executive Vice President and Chief Risk Officer Erika K. Parisi Executive Vice President and Chief Administrative Officer Timothy A. Swansson
Slide 6: Other Participants
Corporate Secretary Kearny Financial Corp. Gail Corrigan Senior Vice President Legal Counsel Luse Gorman, PC Marc Levy, Esq. Independent Registered Public Accounting Firm Crowe LLP Bill Hoving Audit Partner Inspector of Election Computershare Amilja Regan Assistant Vice President Other Participants
Slide 7: Business of the Meeting
Business of the Meeting Proposals Election of five directors Ratification of the appointment of Crowe LLP as the Company’s independent auditor for the fiscal year ending June 30, 2021 Advisory, non-binding resolution to approve our executive compensation as described in the Proxy Statement Report of
Slide 8: Proposal #1 Election of Directors
Theodore J. Aanensen Three year term to expire in 2023 Joseph P. Mazza Three year term to expire in 2023 Christopher Petermann Two year term to expire in 2022 Charles J. Pivirotto Three year term to expire in 2023 John F. Regan Three year term to expire in 2023 Proposal #1 Election of Directors
Slide 9: Proposal #2 Ratification of Auditor
Ratification of the appointment of Crowe LLP as the Company’s independent auditor for the fiscal year ending June 30, 2021 Proposal #2
Slide 10: Proposal #3 Advisory Vote on Executive Compensation
Advisory, non-binding resolution to approve our executive compensation as described in the Proxy Statement Proposal #3
Slide 11: Review of Financial Results Fiscal Year Ended June 30, 2020
Review of Financial Results Fiscal Year Ended June 30, 2020
Slide 12: 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 are subject to risks and uncer
Slide 13: People, Performance, Relationships
People: our significant stakeholders, including employees, current and future customers, stockholders, and the communities we serve Performance: a strong resolve to remain true to sound, conservative practices, and superior customer service which has led to steady progress and growth throughout the
Slide 14: Company Overview
NASDAQ: KRNY Market Cap: $681.2 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 51 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 Octobe
Slide 15: Forbes Best-In-State Bank recognition
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Slide 16: Fiscal 2020 Highlights
Fiscal 2020 Highlights $6.8 billion in total assets $4.5 billion in total loans $4.4 billion in total deposits $1.1 billion in total equity Net income of $45.0 million, an increase of $2.8 million Earnings per share of $0.55, an increase of 20% Core non-maturity deposit growth of 33% or $647 million
Slide 17: Capital Strength
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 activi
Slide 18: Capital Management
Capital Management Capital Returned to Shareholders Over $595 million of capital returned to shareholders via dividends and share repurchases On October 19, 2020 an additional 5% share repurchase plan was announced Source: Company Filings
Slide 19: Earnings Performance
Earnings Performance Net Income & Return on Assets1 Earnings per Share 1) Although management believes core ROAA, a non-GAAP measure, is useful to investors by providing a greater level of understanding of its business, it should not be considered a substitute for financial measures determined in ac
Slide 20: Operating Efficiency
Operating Efficiency Efficiency Ratio and Operating Leverage Source: S&P Global Market Intelligence & Company Filings Improving efficiency and operating leverage resulting from cost control and post-acquisition economies of scale
Slide 21: Deposits
Deposits Consolidated 10 branches in 18 months while shifting the deposit base towards lower cost core deposit relationships Deposit Composition, as of June 30, 2020 Deposit Growth Source: S&P Global Market Intelligence & Company Filings
Slide 22: Mortgage Banking
Mortgage Banking 1-4 Family Avg. LTV = 59.0% Home Equity Avg. LTV = 41.0% Residential 1-4 Family Loans Sold Source: Company Filings
Slide 23: Portfolio Lending
Portfolio Lending Portfolio Composition1 Geographic Distribution1 1 As of June 30, 2020 Source: S&P Global Market Intelligence & Company Filings LTV, by Real Estate Secured Segment1 Strategy designed to grow and diversify the loan portfolio; focus on C&I and construction credits with seasoned princi
Slide 24: COVID Loan Deferments
COVID Loan Deferments Active COVID Deferments as of September 30, 2020 COVID Deferment Trends by Status Source: Company Filings
Slide 25: Asset Quality Trends
Asset Quality Trends Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Increase reflects addition of one $14 million nonperforming commercial real estate loan with current appraised LTV of 69% Source: S&P Global Market Intelligence & Company Filings History of strong asset quality
Slide 26: M&A History and Strategy
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 markets
Slide 27: MSB Financial Acquisition
MSB Financial Acquisition Transaction completed on July 10, 2020 Systems conversion and re-branding completed simultaneous with closing Expanded franchise into attractive Somerset and Morris county, NJ markets Tangible book value dilution of 1.4%, or 1.8% inclusive of Day 1 CECL entry Non-interest e
Slide 28: Report of the Inspector of Election
Report of the Inspector of Election Results of Voting
Slide 29: Annual Meeting of Stockholders October 22, 2020
Annual Meeting of Stockholders October 22, 2020 10:00 AM
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