Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2018)
25 slides from Kearny Financial's shareholder meeting presentation, Oct 25, 2018
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders Nasdaq: KRNY October 25, 2018 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
Founded in 1884 5th Largest New Jersey based financial institution by asset size 54 branch locations in 11 counties throughout Northern and Central New Jersey and Southern New York New branch location in Cliffside Park, NJ expected to open in the spring of 2019 Top 15 deposit market share in the cou
Slide 4: 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 5: Kearny Value Chain
Kearny Value Chain Optimization of asset mix Grow and diversify our commercial loan portfolio Increase residential mortgage lending Reinvest cash flows from the investment portfolio into loans while still maintaining a diverse composition and allocation to reduce exposure to long term interest rate
Slide 6: Branch Locations and Attractive Market Demographics
Branch Locations New Branch Location (Spring 2019) Attractive Market Demographics Note: Deposit numbers as of June 30, 2018 Branch map includes new branch location in Cliffside Park, NJ expected to be opened in Spring 2019 Defined as the New York-Newark-Jersey City, NY-NJ-PA MSA Source: S&P Global M
Slide 7: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) 6-Year CAGR: 23.3% Loan growth focus: Expand upon expertise in C&I, SBA, and construction lending Enhance credit and risk management infrastructure to support loan growth Lift out small teams of residential len
Slide 8: Loan Portfolio Composition
Loan Portfolio Composition As of June 30, 2018 KRNY had $4.5 billion in loans receivable, comprising 68.0% of total assets Kearny’s yield on loans was 3.87% for the 2018 fiscal year Kearny continues to focus on loan portfolio diversification Avg. LTV 1-4 Family: 48.48% Home Equity: 34.52% Multifamil
Slide 9: $531 million in recent commercial loans and still counting!
$531 million in recent commercial loans and still counting!
Slide 10: Residential Lending
Residential Lending Admirable performance despite the ever-increasing competition in the marketplace from non-bank financial intermediaries such as insurance companies, fintech, governmental agencies and other types of financing providers
Slide 11: Construction Lending
Construction Lending New construction project located in Wallington, NJ 4-story building Mixed-use Retail/Residential
Slide 12: Kearny Bank among New Jersey's Best-In-State Banks
Kearny Bank among New Jersey’s five Best-In-State-Banks – 2018 Forbes Lists Each year Forbes provides rankings based on a variety of categories ranging from the wealthiest people on the planet to the best colleges America has to offer. Kearny Bank named to Forbes’ list of 50 Most Trustworthy Financi
Slide 13: Credit Metrics
Kearny has continued to successfully reduce its percentage of nonaccrual, 90+ Past Due & OREO to assets over the past five calendar years Kearny’s conservative underwriting standards and prompt attention to potential problem loans supports a track record of consistently strong asset quality metrics
Slide 14: Securities Portfolio
Securities excludes FHLB Stock Source: S&P Global Market Intelligence, Company Filings Securities Portfolio Kearny’s yield on securities was 2.52% for the 2018 fiscal year, a increase of 33 basis points from 2017 Kearny is working to reduce the portion of securities as a percent of total assets As o
Slide 15: Deposit Composition
Deposit Composition Kearny Financial Corp. had $4.07 billion in deposits as of June 30, 2018 The quarter ended June 30, 2018’s cost of total deposits was 0.97% Challenging deposit gathering environment in New York MSA Utilize CRM system to help drive core deposit growth CSBK footprint provides new o
Slide 16: Improving Performance Metrics
Improving Performance Metrics Core ROAA & Net Income trends are strong NII & Non-Interest income trends for Q4 reflect the positive effects of the CSBK Deal Efficiency ratio remained flat for most of 2018. Core Q4 efficiency ratio of 67.71% is more indicative of the new trend Profitability Efficienc
Slide 17: Maintenance of Strong Capital Ratios
Maintenance of Strong Capital Ratios Tangible Common Equity to Tangible Assets Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio Risk-Based Capital Ratio Peer group includes FFIC, DCOM, EBSB, CNOB, PGC, ORIT, NFBK, BMTC, BHBK Source: S&P Global Market Intelligence. Bank level financial numbers u
Slide 18: M&A History and Strategy
M&A History and Strategy Kearny is an experienced acquirer and integrator, having successfully completed 6 bank acquisitions over the past 19 years Kearny actively seeks out opportunities to deploy capital, including through mergers and acquisitions with other financial institutions The primary emph
Slide 19: Robust capital to support continued growth
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 20: 2019 Strategic Focus
Traditional Community Banking: Growth/Diversification of loan mix: C&I/SBA/Residential/Construction/Consumer Grow funding through traditional deposit sources utilizing technology: Mobile Banking, New Online Account Opening product/Intelligent ATMs Growth/Opportunities: Mortgage banking platform (Sel
Slide 21: 2019 Strategic Focus (cont.)
2019 Strategic Focus (cont.) Capital Market Strategies Dividends Buybacks (3rd Buyback announced on 4/27/2018) M&A Opportunistic Low premium deals Similar or complementary business model Cultural compatibility Control operating expenses Branch rationalization vs De Novo branch opportunities Continue
Slide 22: Technology/Innovation is part of our Future
Technology/Innovation is part of our Future OriginateSM
Slide 23: @KearnyBank Newsfeed
@KearnyBank Newsfeed Kearny Bank’s social media followers have collectively increased by 74.1% in 2018 facebook.com/kearnybank/ twitter.com/KearnyBank instagram.com/kearny_bank/ linkedin.com/company/kearny-bank/ pinterest.com/KearnyBank/ COMING SOON!
Slide 24: Comparative Equity Performance
Comparative Equity Performance Note: Market data as of October 16, 2018 Peer group includes FFIC, DCOM, EBSB, CNOB, PGC, ORIT, NFBK, BMTC, BHBK Source: S&P Global Market Intelligence Stock Price Performance since January 1, 2013
Slide 25: Peer Group Valuation Comparison
Peer Group Valuation Comparison Note: Market data as of October 16, 2018 Source: S&P Global Intelligence
Kearny Financial — Shareholder Meeting (October 2018) on 6ix