Kearny Financial · NASDAQ:KRNY
Kearny Financial — Investor Presentation (February 2019)
22 slides from Kearny Financial's investor presentation, Feb 25, 2019
Slide 1: Investor Presentation
Investor PresentationNASDAQ: KRNY February 2019
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 are subject to risks and uncert
Slide 3: Overview of Kearny Financial Corp
Founded in 18845th Largest New Jersey-based financial institution by asset size55 branch locations in 11 counties throughout Northern and Central New Jersey and Southern New YorkTop 15 deposit market share in the counties of Bergen, Hudson, Passaic, Ocean, and Monmouth, New Jersey²Active acquirerCom
Slide 4: Investment Rationale
Investment Rationale Conservative lending practices and strong credit culture resulting in outstanding credit metricsAttractive market demographicsHistory of successfully evaluating, executing and integrating acquisitionsRobust capital levels and history of capital returns via buybacks & dividendsCo
Slide 5: Attractive Market Demographics
Branch LocationsNew Branch Location (Spring 2019) Attractive Market Demographics Note: Deposit numbers as of June 30, 2018Branch map includes new branch location in Cliffside Park, NJ expected to be opened in Spring 20191) Defined as the New York-Newark-Jersey City, NY-NJ-PA MSASource: S&P Global Ma
Slide 6: M&A History and Strategy
M&A History and Strategy Experienced acquirer and integrator, having successfully completed 6 bank acquisitions over the past 19 yearsOpportunistic acquisition strategy with a focus onLow premium dealsSimilar or complementary business modelsExpansion in existing or contiguous marketsCultural compati
Slide 7: Capital Strength
Robust capital to support continued growthOur 2015 second step offering has allowed us to pursue organic and strategic growth opportunitiesLarger public float and strong liquidity results in an active market for our common stock. Average daily trading volume of 363,493 shares¹Index membershipABA Nas
Slide 8: Normalizing Capital Ratios
Normalizing Capital Ratios Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio Risk-Based Capital Ratio Peer group includes CNOB, CUBI, DCOM, FCF, FFIC, LBAI, NBTB, NWBI OCFC, PFS, STBA, TSC, TMP, TRST, UBNK, UVSPSource: S&P Global Market Intelligence. Bank level financial numbers used where unava
Slide 9: Improving Performance Metrics
Improving Performance Metrics Profitability1 Efficiency Ratio2 Performance Metrics Although management believes these 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 financial measures determined
Slide 10: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) 3.5-Year CAGR: 26.2% Loan growth focus:Expand upon expertise in C&I, SBA, and construction lendingContinue to enhance credit and risk management infrastructure to support loan growthLift out small teams of resi
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition $4.7 billion in loans receivable, representing 70.4% of total assets4.12% loan yield for Q2 2019Continuing focus on loan portfolio diversificationAverage LTV:CRE 47.3%Multifamily 61.2%Construction/Land 48.1%1-4 Family 48.7%Home Equity 37.0% MRQ Loan Portfolio CRE, Multifam
Slide 12: Credit Metrics
Conservative underwriting standards, dedicated special assets group and prompt attention to potential problem loans supports a track record of consistently strong asset quality metricsALLL coverage ratio declined in fiscal 2018 due to purchase accounting adjustments related to the CSBK acquisition C
Slide 13: Deposit Composition
Deposit Composition $4.17 billion in deposits as of December 31, 20181.25% Q2 2019 cost of total depositsCompetitive deposit gathering environment in New York MSAUtilizing CRM system to help drive core deposit growthCSBK footprint provides new opportunities to grow core depositsShift in deposit base
Slide 14: Securities Portfolio
Securities excludes FHLB StockSource: S&P Global Market Intelligence, Company Filings Securities Portfolio Yield on securities was 3.02% in Q2 2019, an increase of 49 basis points from FY 2018Securities portfolio serves as both a source of liquidity and yieldAs of December 31, 2018, 18.9% of total a
Slide 15: Technology / Innovation Strategy
Technology / Innovation Strategy 14 Recently deployed EnAct Customer Relationship Management (CRM) suiteFocus on expanding wallet share from single-service households & businessesUpcoming digital product and service deploymentsOnline account openingEnhanced escrow management systemFDIC-insured liqui
Slide 16: @KearnyBank Newsfeed
@KearnyBank NewsfeedSocial media followers collectively increased by 74% in 2018 facebook.com/kearnybank/ twitter.com/KearnyBank instagram.com/kearny_bank/ linkedin.com/company/kearny-bank/ pinterest.com/KearnyBank/ 15
Slide 17: Strategic Focus
Traditional Community BankingGrowth and diversification of loan mixCRE, C&I, SBA, constructionGrowth and diversification of funding utilizing technologyMobile banking, online account opening, intelligent ATMsGovernment & business relationship bankingExpand Treasury management services:Insured liquid
Slide 18: Strategic Focus: Capital Management
Strategic Focus Capital management strategiesDividendsQuarterly cash dividend increased to $0.06 per share in Q3 fiscal 2019Buybacks26.4 million shares repurchased through 12/31/18M&AMost recent transaction, $1.6 billion asset Clifton Bancorp, closed on 4/2/18Control operating expensesBranch consoli
Slide 19: Comparative Equity Performance
Comparative Equity Performance Note: Market data as of February 15, 2019Peer group includes CNOB, CUBI, DCOM, FCF, FFIC, LBAI, NBTB, NWBI OCFC, PFS, STBA, TSC, TMP, TRST, UBNK, UVSPSource: S&P Global Market Intelligence Stock Price Performance since January 1, 2013 18
Slide 20: Peer Group Valuation Comparison
Peer Group Valuation Comparison Note: Market data as of February 15, 2019Source: S&P Global Intelligence 19
Slide 21: Management Team
Management Team 20 Name Years in Banking Years with KRNY Biography Craig L. MontanaroPresident & Chief Executive Officer 31 16 Craig L. Montanaro was appointed President and Chief Executive Officer in April 2011. Prior to that time, he served as President and Chief Operating Officer since April 2010
Slide 22: Management Team
Management Team 21 Name Years in Banking Years with KRNY Biography Erika K. ParisiExecutive Vice President/Director of CRM and Analytics 28 20 Erika K. Parisi was appointed Executive Vice President and Director of Customer Relationship Management Analytics of Kearny Bank in June 2016, previously ser
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