Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q1 2025 Earnings Presentation
18 slides from Kearny Financial's earnings presentation, Oct 24, 2024
Slide 1: Investor Presentation First Quarter Fiscal 2025
I N V E S T O R P R E S E N TAT I O N FIRST QUARTER FISCAL 2025 OCTOBER 24, 2024
Slide 2: Forward Looking Statements & Financial Measures
Forward Looking Statements & 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 forward-l
Slide 3: Kearny Financial Corp. Company Overview
Kearny Financial Corp. Company Overview Branch/Office Footprint NASDAQ: KRNY Founded: 1884 Assets: $7.8 billion Loans $5.8 billion Deposits $5.5 billion TBV Per Share: $9.85 Market Cap: $443.7 million1 Company Profile Top 10 New Jersey-based financial institution by assets & deposits 43 full-service
Slide 4: 140 Years: Franchise Milestones
Founded Obtained Federal South Bergen Savings Pulaski Bancorp Acquired Kearny, NJ Charter Bank Acquired 2003 1941 1999 1884 140 Years: Franchise Completed First-Step West Essex Bank Central Jersey Bancorp Mutual Conversion Atlas Bank Acquired Acquired Acquired & IPO of $218.2M 2014 Milestones 2004 2
Slide 5: 1Q25 Financial Highlights
1Q25 Financial Highlights EARNINGS BALANCE SHEET Net Income Reported net income for the quarter Total assets were $7.8 billion at GAAP Adjusted1 ended September 30, 2024 of $6.1 September 30, 2024, an increase of million, or $0.10 per diluted share. $88.9 million, or 1.2%, from June 30, $6.1 million
Slide 6: Capital Strength
Capital Strength Equity Capitalization Level Regulatory Capital Ratios1,2 10.65% 10.74% 10.83% 15.46% 14.60% 14.60% 9.81% 9.67% 10.00% 9.14% 8.00% 6.50% 8.20% 8.26% 8.34% 8.43% 8.31% 5.00% Tier 1 Common Equity Tier 1 Risk-Based Total Risk-Based 1Q24 2Q24 3Q24 4Q24 2 1Q25 Leverage Tier 1 Capital Capi
Slide 7: Track Record of Strong Credit Performance
Track Record of Strong Credit Performance Net Charge-offs to Average Total Loans Global Hurricane Financial Sandy Cumulative charge-offs for KRNY COVID-19 Crisis Pandemic between 2006 and 1Q25 were minimal, totaling $38.7 million. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Trend Loan Composition1 ($ millions) Multi-family CRE 45.7% 16.4% $5,760 $5,757 $5,775 $5,749 $5,786 QTD Yield on Loans Construction $947 $947 $966 $948 $951 3.9% 4.61% C&I 2.5% Home Equity $2,646 0.8% 1-4 Family $2,699 $2,651 $2,645 $2,646 30.6% Geographic Distributi
Slide 9: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Outside Fully NYC Rent NYC Multifamily Portfolio: $1.2 billion NYC 53.6% Regulated 2.2% Average Loan Balance: $3.48 million Majority NYC Weighted Average LTV: 62.1% Rent Regulated Total MF 3.3% Nonp
Slide 10: CRE Loan Detail
CRE Loan Detail CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Medical Other 4.4% 3.4% Retail 34.1% Pennsylvania Specialty & Other New Jersey 4.8% 5.1% 56.7% Industrial Total CRE LTV 16.6% $951M 52.5% New York (Ex. Brooklyn) 25.8% Office Mixed Use 11.3% 28.5% Brooklyn 9.3% Sourc
Slide 11: Office Portfolio
Office Portfolio Office Loan Geographic Distribution1 Office Portfolio by Contractual Maturity1 ($ millions) $40 Other 2.9% New Jersey $30 69.4% Total Office Manhattan 21.7% $107M $20 $35 $31 New York (Excl. Manhattan) LTV 47.9% 6.1% $10 $18 DSCR 1.9x $9 $9 $3 $0 Office Portfolio Profile $0 2024 202
Slide 12: Asset Quality Metrics
Asset Quality Metrics Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets Increase driven by a single Increase driven by 0.75% commercial real estate a single C&I 0.40% relationship relationship 0.29% 0.64% 0.30% 0.25% 0.63% 0.65% 0.20% 0.15% 0.55% 0.52% 0.51% 0.50% 0.10% 0.02% 0.01
Slide 13: Granular Deposit Franchise
Granular Deposit Franchise Deposit Trend Non-Maturity Deposit Mix1 ($ millions) Deposit Government $5,434 $5,471 Composition 13.8% $5,320 $5,209 $5,158 $595 $592 10.8% $584 $586 $598 Commercial $2,248 22.0% $2,237 41.1% $2,347 $2,350 $2,309 Consumer 64.2% $689 $682 12.5% $646 $630 $643 Deposit Segme
Slide 14: Liquidity Available for Uninsured Deposits
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis1,2 Liquidity Capacity2 Estimated Uninsured Deposit Analysis ($ millions) Sources of Liquidity Liquidity Funding Available Estimated Uninsured Deposits $ 1,800 1 ($ millions) Capacity Utilized Capacity Less: Collateraliz
Slide 15: Investment Securities
Investment Securities Securities Composition1 Securities Average Balance & Yield Trend Municipal ($ millions) Agency Bonds 4.42% 4.46% MBS 4.27% 4.39% 4.36% 1.0% 50.4% Corporate Bonds 11.1% ABS Student CLO 2 Loans 31.4% $1,532 $1,524 6.2% $1,397 $1,357 $1,327 AFS/HTM & Effective Duration HTM Total E
Slide 16: Best-in-Class Operating Efficiency
Best-in-Class Operating Efficiency Adjusted Non-interest Expense to Average Assets1 Deposits per Branch ($ millions) 1.9x $130 $131 $127 1.73% 1.76% $120 121 $114 1.69% 101 $96 1.62% 81 $74 $75 $68 1.61% 61 1.55% 1.55% 41 1.51% 1.50% 21 1 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 2017 2018 2019 2
Slide 17: Conservative Underwriting Culture
Conservative Underwriting Culture Comprehensive CRE / Multifamily Underwriting Multi-faceted Loan Review & Stress Testing Highly disciplined LTV and DSCR standards Semi-annual third-party loan-level stress testing and annual Interest rates stressed a minimum of +300bps at capital-based stress testin
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of GAAP to Non-GAAP For the quarter ended For the quarter ended For the quarter ended For the quarter ended For the quarter ended (Dollars and Shares in Thousands, September 30, June 30, March 31, December 31, September 30, Except Per Share Data) 2024 2024 2024