Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2022)
27 slides from Kearny Financial's shareholder meeting presentation, Oct 27, 2022
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS O C TO B E R 2 7 , 2 0 2 2 10:00 AM
Slide 2: Welcome and Introductory Remarks
Welcome and Introductory Remarks Craig L. Montanaro Director, President and Chief Executive Officer 2
Slide 3: Members of the Board of Directors
Members of the Board of Directors John J. Mazur, Jr., Chairman Theodore J. Aanensen John F. McGovern Raymond E. Chandonnet Craig L. Montanaro John N. Hopkins Leopold W. Montanaro Catherine A. Lawton Christopher Petermann Joseph P. Mazza Charles J. Pivirotto John F. Regan 3
Slide 4: Executive Management Team
Executive Management Team Keith Suchodolski Patrick M. Joyce Anthony V. Bilotta, Jr. Senior Executive Vice President Executive Vice President Executive Vice President Chief Financial Officer Chief Lending Officer Chief Banking Officer Thomas D. DeMedici John V. Dunne Erika K. Parisi Timothy A. Swans
Slide 5: Other Participants
Other Participants Corporate Secretary Legal Counsel Kearny Financial Corp. Luse Gorman, PC Gail Corrigan Marc Levy, Esq. Senior Vice President Independent Registered Public Inspector of Election Accounting Firm Computershare Crowe LLP Andrey Dragun, CPA Amilja Regan Partner Assistant Vice President
Slide 6: Business of the Meeting
Business of the Meeting Proposals to be voted upon: Election of four directors, each for a three-year term; Ratification of the appointment of Crowe LLP as the Company’s independent auditor for the fiscal year ending June 30, 2023; Advisory, non-binding resolution to approve our executive co
Slide 7: Review of Financial Results, Fiscal Year Ended June 30, 2022
ANNUAL MEETING OF STOCKHOLDERS R ev i ew o f F i n a n c i a l R e s u l t s F i s c a l Ye a r E n d e d J u n e 3 0 , 2 0 2 2
Slide 8: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures 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
Slide 9: Kearny Financial Corp.
Kearny Financial Corp. NASDAQ: KRNY Market Cap: $741.2 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 45 full-service branches2 in 12 counties throughout New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of Octo
Slide 10: 138 Years of Serving our Communities and Clients
138 Years of Serving our Communities and Clients Formed the KearnyBank foundation funded with $10M Completed Second- South Bergen Savings West Essex Bank Central Jersey Step Conversion and Clifton Bancorp Introduced Private Founded, Kearny, NJ Bank Acquired Acquired Bancorp Acquired $717.5M Stock Ac
Slide 11: Financial Highlights
Financial Highlights Balance Sheet 2022FY 2021FY ($ in billions) Total Assets $7.72 $7.28 Total Loans $5.44 $4.88 Total Deposits $5.86 $5.49 Profitability and Performance Ratios 2022FY 2021FY ($ in millions, except per share data) Net Income $67.5 $63.2 Earnings per share $0.95 $0.77 Net Interest In
Slide 12: Equity & Capitalization
Equity & Capitalization Equity Capitalization Level Regulatory Capital Ratios1,2 20.00% 19.28% 15.17% 16.99% 14.58% 14.58% 14.37% 16.04% 16.00% 14.32% 11.86% 11.90% 11.58% 10.14% 12.00% 9.37% 8.00% 16.53% 14.19% 13.29% 11.72% 4.00% 9.06% 0.00% 2018FY 2019FY 2020FY 2021FY 2022FY Tier 1 Common Equity
Slide 13: Capital Management
Capital Management Cumulative Capital Returned to Stockholders1 ($ millions) $903 $152 $743 $122 $596 $502 $94 $69 $327 $751 $36 $621 $502 $433 $291 2018FY 2019FY 2020FY 2021FY 2022FY Repurchase of Common Stock Dividends Paid Repurchased 10.2 million shares during Fiscal 2022 at an average price of
Slide 14: Earnings Performance
Earnings Performance Earnings per Share1 Net Income & Return on Assets1 ($ millions) $1.25 $140 1.05% 0.96% 0.91% $0.98 $120 0.90% $1.00 0.93% 0.86% $0.81 $0.95 $100 0.65% 0.66% 0.75% $0.75 $0.77 $80 0.52% 0.67% $69.6 0.60% 0.63% $66.7 $0.54 $0.47 $60 0.37% 0.45% $0.50 $0.55 $43.4 $44.3 $0.33 $0.46
Slide 15: Deposits
Deposits Deposit Composition1 Deposit Growth ($ millions) $5,862 $5,485 13.2% 11.2% $654 $594 $4,430 $4,074 $4,147 $419 $309 $1,902 $2,266 19.0% QTD Cost $312 $843 $1,264 of Deposits $1,001 0.32% 38.6% $791 $1,111 $1,053 $744 $907 $189 $302 $67 $479 $773 18.0% $1,828 $1,902 $1,773 $1,399 $1,116 2018
Slide 16: Portfolio Lending
Portfolio Lending Loan Composition1 Loan-to-Value by Real Estate Secured Segment2 Geographic Distribution2 Other 0.8% 2.6% 3.2% Pennsylvania 3.2% Balance Loan to 5.1% Loan Type ($ millions) Value (LTV) 1-4 Family $1,646 62% 18.8% 30.3% Multifamily $2,409 64% New York QTD Yield CRE $1,020 54% 36.0% o
Slide 17: Asset Quality
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 0.15% 1.50% 1.19% 1.25% 1.10% 0.10% 0.07% 1.00% 0.03% 0.75% 0.55% 0.05% 0.02% 0.50% 0.31% 0.27% 0.00% 0.03% 0.25% 0.00% 2018FY 2019FY 2020FY 2021FY 2022FY 0.00% 2018FY 2019FY 2020FY 2021FY 2022FY -0.05% Non-Performing
Slide 18: Selected Technology Partners
Selected Technology Partners 18
Slide 19: M&A History and Strategy
M&A History and Strategy Experienced and disciplined acquirer and integrator Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous markets Cultural compatibility Focus on limiting tangible book value dil
Slide 20: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) The Company’s expanded ESG Report was recently released, disclosing the Company’s ongoing efforts related to: Environmental sustainability and climate risk management Cyber security, community re-investment and affordable housing initiatives Human capital ini
Slide 21: Financial Update, First Quarter Fiscal 2023
ANNUAL MEETING OF STOCKHOLDERS Financial Update First Quarter Fiscal 2023
Slide 22: First Quarter Fiscal 2023
First Quarter Fiscal 2023 Balance Sheet 2023Q1 2022Q4 ($ in billions) Total Assets $7.89 $7.72 Total Loans $5.68 $5.44 Total Deposits $6.11 $5.86 Profitability and Performance Ratios 2023Q1 2022Q4 ($ in millions, except per share data) Net Income $16.5 $11.4 Earnings per share $0.25 $0.17 Net Intere
Slide 23: First Quarter Fiscal 2023
First Quarter Fiscal 2023 Loan Growth Non-Performing Assets / Total Assets Deposit Growth $5,676 $5,437 $6,108 1.75% $5,862 $4,731 $4,880 $5,485 $4,540 $683 $1,041 $654 $1,020 1.50% $594 1.19% $4,430 $1,259 $1,079 1.25% 1.10% $4,147 $961 $419 $2,382 0.98% $309 $1,902 $2,266 1.00% $2,570 $843 $1,264
Slide 24: Stockholder Questions
Stockholder Questions Questions? 24
Slide 25: Results of Voting, Report of the Inspector of Election
Results of Voting Report of the Inspector of Election 25
Slide 26: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS O C TO B E R 2 7 , 2 0 2 2 10:00 AM
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Appendix A: Reconciliation of GAAP to Non-GAAP For the year ended For the year ended (Dollars in Thousands, June 30, June 30, Except Per Share Data) 2022 2021 Adjusted net income: Net Income (GAAP) $67,547 $63,233 Non-recurring transactions - net of tax: Early contract termin
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