Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2017)
21 slides from Kearny Financial's shareholder meeting presentation, Oct 26, 2017
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders Nasdaq: KRNY October 26, 2017 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 9th Largest New Jersey based deposit franchise 42 branch locations in 11 counties throughout Northern and Central New Jersey and Southern New York New branch location in Greenpoint, NY expected to be opened in April 2018 Top 15 deposit market share in the counties of Bergen, Hudson,
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 cash flows from the investment portfolio into loans while still maintaining a diverse co
Slide 7: Attractive Market Demographics
Attractive Market Demographics Note: Deposit numbers as of June 30, 2017; Branch map includes new branch location in Greenpoint, NY expected to be opened in April 2018 Defined as the New York-Northern New Jersey-Long Island MSA Source: SNL Financial Attractive markets Part of the largest MSA¹ in the
Slide 8: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) 5-Year CAGR: 20.4% Loan growth focus: Expand upon expertise in commercial real estate, C&I, multifamily, SBA, and construction lending Continue to hire additional credit and risk management personnel to support
Slide 9: Loan Portfolio Composition
Loan Portfolio Composition As of June 30, 2017 KRNY had $3.2 billion in loans receivable, comprising 66.8% of total assets Kearny’s yield on loans was 3.77% for the 2017 fiscal year Kearny continues to make progress towards its intended shift in loan mix Maintain conservative underwriting and credit
Slide 10: Commercial Lending Success Continues
Commercial Lending Success Continues
Slide 11: Industry Leadership Recognized
Industry Leadership Recognized
Slide 12: Credit Metrics
Kearny has been successful in reducing its percentage of nonaccrual, 90+ Past Due & OREO to assets over the past five fiscal years Kearny’s conservative underwriting standards and prompt attention to potential problem loans supports consistently superior asset quality Continue to refine ALLL methodo
Slide 13: Securities Portfolio
Securities Portfolio Source: SNL Financial, Company Filings Kearny’s yield on securities was 2.19% for the 2017 fiscal year, a increase of 17 basis points from 2016 Kearny is working to reduce the portion of securities as a percent of total assets As of June 30, 2017, 23.0% of Kearny’s total assets
Slide 14: Deposit Composition
Deposit Composition MRQ Deposit Portfolio Kearny Financial Corp. had $2.93 billion in deposits as of June 30, 2017 The quarter ended June 30, 2017’s cost of total deposits was 0.82% down from 1.06% for the quarter ended June 30, 2011 Continue to grow core deposits: interest bearing and noninterest b
Slide 15: Improving Performance Metrics
Improving Performance Metrics Profitability Efficiency Ratio Performance Metrics Performance metrics are improving ROAA continues to improve over the past three years NII & Non-Interest Income trends are positive Efficiency ratio down to 71.02% in FY2017, compared to 83.02% in FY2013 2015FY Core ROA
Slide 16: Maintenance of Strong Capital Ratios
Maintenance of Strong Capital Ratios Peer group as shown on page 20 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 17: M&A History and Strategy
M&A History and Strategy Source: SNL Financial, Company Filings Seller Completed Type Assets ($000) Branches Atlas Bank June 30, 2014 Thrift 110,480 2 Central Jersey Bancorp November 30, 2010 Bank 571,295 13 West Essex Bancorp July 1, 2003 Thrift 390,333 8 Pulaski Bancorp, Inc. MHC October 18, 2002
Slide 18: A Stronger Kearny Financial Update
Robust capital to support continued growth The second step offering allows Kearny to pursue organic and strategic growth opportunities that will continue Kearny’s historically strong loan growth Facilitates future mergers and acquisitions Allows for increased flexibility to use common stock while bi
Slide 19: 2017 Strategic Focus
Traditional Community Banking Growth/ Diversification of loan mix: CRE/Multifamily/C&I/SBA/Residential/Construction/Consumer Grow funding through traditional deposit sources utilizing a technological focus: mobile banking/ online account opening/ Intelligent ATMs Growth/Opportunities Mortgage bankin
Slide 20: Comparative Stock Price Performance
Comparative Stock Price Performance Note: Market data as of October 10, 2017 Peer group as shown on page 20 Source: SNL Financial Stock Price Performance since January 1, 2012
Slide 21: Peer Group Valuation Comparison
($ in thousands) Total Price/ Peer Company Ticker Headquarters Assets TBV Flushing Financial Corporation FFIC Uniondale, NY $6,285 172% Dime Community Bancshares, Inc. DCOM Brooklyn, NY $6,258 159% Meridian Bancorp, Inc. EBSB Peabody, MA $4,787 170% ConnectOne Bancorp, Inc. CNOB Englewood Cliffs, NJ
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