Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q1 FY2022 Earnings Presentation
15 slides from Kearny Financial's earnings presentation, Nov 12, 2021
Slide 1: Investor Presentation First Quarter Fiscal 2022
Investor Presentation First Quarter Fiscal 2022 Exhibit 99.1
Slide 2: Presenters
Keith Suchodolski Executive Vice President and Chief Financial Officer Craig L. Montanaro Director, President and Chief Executive Officer Presenters
Slide 3: 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 4: Company Overview
NASDAQ: KRNY Market Cap: $1.0 billion1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 48 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 November
Slide 5: First Quarter Highlights
First Quarter Highlights Net Income of $19.7 million, or $0.26 per share Net interest margin expanded 7 bps to 2.99% ROAA of 1.09%; ROATCE of 9.67% Non-interest bearing deposits grew $37.6 million, or 6.3% Gain on sale of residential loans totaled $1.0 million For the Quarter Ended September 30, 202
Slide 6: Capital Strength
Capital Strength Tier 1 Leverage Ratio2 Total Risk-Based Capital Ratio2 Peer group includes BRKL, BMTC, CLBK, CNOB, DCOM, FLIC, FFIC, LBAI, EBSB, NFBK, PGC, STBA, TMP, TRST Peer group Tier 1 Leverage and Total Risk-Based Capital Ratios based on September 30, 2021 results. Source: S&P Global Market I
Slide 7: Capital Management
Capital Management Cumulative Capital Returned to Stockholders1 Since FY 2016, $790 million of capital returned to stockholders via dividends and share repurchases. Repurchased 3.2 million shares during the quarter at an average price of $12.35 per share. 7.4 million shares are available for repurch
Slide 8: Earnings Performance
Earnings Performance Net Income & Return on Assets1 Earnings per Share1 1) Although management believes core net income, EPS and ROAA, which are non-GAAP measures, are useful to investors by providing a greater level of understanding of its business, they should not be considered a substitute for fi
Slide 9: Deposits
1 As of and for the quarter ended September 30, 2021. Source: S&P Global Market Intelligence & Company Filings Deposits Deposit Composition1 Deposit Growth Consolidated 15 branches over a two year period, inclusive of three consolidations scheduled for Q2 FY 2022, while shifting the deposit base to
Slide 10: Mortgage Banking
Mortgage Banking 1-4 Family Avg. LTV = 59.0% Home Equity Avg. LTV = 41.0% Residential 1-4 Family Loans Sold Source: Company Filings ($ thousands)
Slide 11: Portfolio Lending
Portfolio Lending Loan Composition1 Geographic Distribution2 1 As of and for the quarter ended September 30, 2021 2 As of September 30, 2021 Source: S&P Global Market Intelligence & Company Filings Loan-to-Value by Real Estate Secured Segment2 Strategy designed to grow and diversify the loan portfol
Slide 12: Asset Quality
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 1 As of September 30, 2021; amounts shown in millions 2 The Company adopted CECL methodology effective FY 2021 Q1 Source: S&P Global Market Intelligence & Company Filings Non-Performing Loans1 Allowance for Credit Los
Slide 13: M&A History and Strategy
M&A History and Strategy Experienced acquirer and integrator, having successfully completed 7 whole-bank acquisitions over the past 22 years Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous markets
Slide 14: Technology Roadmap
Technology Roadmap Omni-channel sales and service model Traditional in-branch products available online and via mobile channels Adoption of Glia, a next-generation digital client service solution Acquisition of best-in-breed digital and mobile banking front-end solutions Streamline the client experi
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Appendix A: Reconciliation of GAAP to Non_GAAP (Dollars in Thousands, Except Per Share Data) For the quarter ended September 30, 2021 Adjusted net income: Net income (GAAP) $19,715 Branch consolidation expenses and impairment charges 1,209 Net effect of sales and calls of sec