Kearny Financial · NASDAQ:KRNY
Kearny Financial — Sandler O'Neill Conference 2016
20 slides from Kearny Financial's conference presentation, Nov 22, 2016
Slide 1: Sandler O'Neill Conference
Sandler O’Neill Conference Nasdaq: KRNY November 17, 2016 Exhibit 99.1
Slide 2: 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 involve risks and uncertaintie
Slide 3: Overview of Kearny Financial Corp
Overview of Kearny Financial Corp As of November 11, 2016 As of June 30, 2016 Source: SNL Financial, Company Filings Founded in 1884 9th Largest New Jersey based deposit franchise 42 branch locations in 11 counties throughout Northern and Central New Jersey and Southern New York Top 15 deposit marke
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 stockholder 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: Core Values
Core Values 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 levels of customer sati
Slide 6: Kearny Value Chain
Kearny Value Chain Optimization of asset mix Grow and diversify our commercial real estate lending portfolio Expand our commercial lending business into new markets Increase residential mortgage lending Reinvest cashflows from the investment portfolio into loans while still maintaining a diverse com
Slide 7: Attractive Market Demographics
Attractive Market Demographics Note Deposit numbers as of June 30, 2016 Defined as the New York-Northern New Jersey-Long Island MSA Source: SNL Financial Attractive markets Part of the largest MSA¹ in the U.S Opportunities still exist for organic growth in existing branch footprint Weighted average
Slide 8: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) 4.25-Year CAGR: 20.6% Loan growth focus: Expand upon expertise in commercial real estate, C&I, multifamily, SBA, and construction lending; Continue to hire additional commercial lenders and credit administratio
Slide 9: Loan Portfolio Composition
Loan Portfolio Composition As of September 30, 2016 KRNY had $2.9 billion in loans receivable, comprising 63.0% of total assets Kearny’s yield on loans was 3.81% for the first fiscal quarter of 2017 Kearny continues to make progress towards its intended shift in loan mix Maintain conservative underw
Slide 10: Commercial Lending Success Continues
Commercial Lending Success Continues
Slide 11: Credit Metrics
Credit Metrics NPAs as defined by SNL to include nonaccrual loans and leases, renegotiated loans and leases, and real estate owned Peer group as shown on page 19 Note: Peer comparison periods changed to conform to the same time periods as Kearny Financial Corp.’s fiscal periods (June 30 fiscal year-
Slide 12: Securities Portfolio
Securities Portfolio Source: SNL Financial, Company Filings Kearny’s yield on securities was 2.09% for the first fiscal quarter of 2017, an increase of 7 basis points from the fiscal year ended June 30, 2016 Kearny is working to reduce the portion of securities as a percent of total assets As of Sep
Slide 13: Deposit Composition
Deposit Composition MRQ Deposit Portfolio Kearny Financial Corp. had $2.73 billion in deposits as of September 30, 2016 The quarter ended September 30, 2016’s cost of total deposits was 0.79% down from 1.06% for the quarter ended June 30, 2011 Shift deposit mix to more core deposits: interest bearin
Slide 14: Improving Performance Metrics
Improving Performance Metrics Profitability Efficiency Ratio Performance Metrics Performance metrics are improving Since 2010 Kearny has nearly doubled the portion of operating revenue derived from noninterest sources Both efficiency ratio and ROAA have improved over the past three years
Slide 15: Maintenance of Strong Capital Ratios
Maintenance of Strong Capital Ratios Peer group as shown on page 19 Source: SNL Financial. Bank level financial numbers used where unavailable at the holding company Tangible Common Equity to Tangible Assets Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio Risk-Based Capital Ratio
Slide 16: M&A History and Strategy
M&A History and Strategy Source: SNL Financial, Company Filings Seller Completed Type Assets ($000) Branches Atlas Bank June 30, 2014 Thrift 110,480 2 Central Jersey Bancorp November 30, 2010 Bank 571,295 13 West Essex Bancorp July 1, 2003 Thrift 390,333 8 Pulaski Bancorp, Inc. MHC October 18, 2002
Slide 17: A Stronger Kearny Financial Update
Robust capital to support continued growth The second step offering allows Kearny to pursue organic and strategic growth opportunities that will continue Kearny’s historically strong loan growth Facilitates future mergers and acquisitions Allows for increased flexibility to use common stock while bi
Slide 18: 2016 Strategic Focus: Traditional Relationship Banking
Traditional Relationship Banking Focus Growth/ Diversification of loan mix: CRE/Multifamily/C&I/SBA/Residential/Construction/Consumer Grow funding thru traditional deposit sources utilizing a technological focus: mobile banking/on-line account opening/RDC Growth/Opportunities Mortgage banking platfo
Slide 19: Comparative Stock Price Performance
Comparative Stock Price Performance Note: Market data as of November 11, 2016 Peer group as shown on page 19 Source: SNL Financial Stock Price Performance since January 1, 2012
Slide 20: Peer Group Valuation Comparison
Peer Group Valuation Comparison ($ in thousands) Total Price/ Peer Company Ticker Headquarters Assets TBV Flushing Financial Corporation FFIC Uniondale, NY $5,999 150% Dime Community Bancshares, Inc. DCOM Brooklyn, NY $5,822 138% ConnectOne Bancorp, Inc. CNOB Englewood Cliffs, NJ $4,328 182% Meridia