Kearny Financial · NASDAQ:KRNY
Kearny Financial — Investor Presentation (November 2012)
18 slides from Kearny Financial's investor presentation, Nov 7, 2012
Slide 1: 2012 Investor Presentation
¥— KEARNY — } Teamwork ae : ie Consistency Professionalism 2012 Investor Presentation
Slide 2: Forward-Looking Statements
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 inv
Slide 3: Overview: Mission statement
Overview Mission statement • Kearny is committed to meeting the financial needs of the individuals, businesses, and communities we serve throughout Northern and Central New Jersey. • By providing a superior level of service, we hope to earn your long-term loyalty and become your financial partner fo
Slide 4: Company Overview
Company Overview • Founded in 1884 • 4th Largest publicly traded mutual holding company • Market capitalization ($617 million) Note: Financial data as of June 30, 2012; Market data as of November 5, 2012 4
Slide 5: Background: Who we were prior to stock issuance
Kearny Financial Corp. Background Who we were prior to stock issuance § Conservative savings bank § Seasoned acquirer and integrator § Experienced New Jersey residential real estate lender § Solid financial condition § Conservative and well-capitalized balance sheet 5
Slide 6: Background: Who we are today
Kearny Financial Corp. Background Who we are today § Progressive community bank § Seasoned acquirer and integrator § Experienced New Jersey residential, commercial and SBA real estate lender § Stable financial condition § Well-capitalized balance sheet 6
Slide 7: Growth through strategic mergers & acquisitions
Kearny Financial Corp. Background Growth through strategic mergers & acquisitions Seller Completed Type Assets Branches ($000) 1st Bergen Bancorp 3/31/1999 Thrift 300,755 4 Pulaski Bancorp, Inc. 10/18/2002 Thrift 237,596 6 MHC West Essex Bancorp 7/1/2003 Thrift 390,333 8 Central Jersey Bancorp 11/30
Slide 8: Deposit Franchise
Deposit Franchise Kearny has a meaningful deposit franchise in Northern & Central New Jersey § 8th largest New Jersey based deposit franchise § $53.1 million in average deposits per branch § 41 branch locations across 9 counties throughout Northern and Central New Jersey § $2.17 billion in deposits
Slide 9: Deposit Market Demographics
Deposit Market Demographics …with the ability to attract customers from across Northern & Central New Jersey § Attractive markets part of largest MSA in the U.S. § Median household incomes well above national median § Household income poised to grow § Opportunities still exist for growth in the mark
Slide 10: Deposit composition and strategies
Kearny Financial Corp. Deposit composition and strategies Deposits - June 30, 2006 Deposits - June 30, 2012 • Internal Strategies § Refocused retail staff to a more customer-centric approach § Implemented leadership and relationship banking training § Upgraded branch facilities to improve customer e
Slide 11: Composition of loan portfolio
Kearny Financial Corp. Composition of loan portfolio • Significant shift in loan portfolio mix • Strong growth in CRE & Multifamily category • Strategically shrinking Consumer and 1-4 Family categories 11
Slide 12: Organic loan growth strategies
Kearny Financial Corp. Organic loan growth strategies • Desire to expand upon expertise in commercial real estate, multifamily, and SBA lending § Hired additional commercial lending personnel to improve market share § Implement business development officer call program to work collaboratively with r
Slide 13: Asset quality
Kearny Financial Corp. Asset quality • The economic crisis had a modest impact on the Bank’s asset quality metrics. The following activities were implemented: § Enhanced credit risk management process through stress testing § Tightened credit underwriting standards on certain asset classes § Enhance
Slide 14: NPA / Assets trend
Kearny Financial Corp. NPA / Assets trend NPAs / Assets Industry Comparison: NPAs / Assets • Modest level of NPAs compared to industry • NPAs improving over the last two quarters • Asset quality improvement expected as real estate market firms (1) All MHCs that are publicly traded (2) The group is c
Slide 15: Summary income statement
Kearny Financial Corp. Summary income statement (1) Excludes loss on sale and write down of REO (2) All MHCs that are publicly traded (3) The group is comprised of publicly traded banks and thrifts Source: SNL Financial, Company Financial Statements 15
Slide 16: Dividend policy
Kearny Financial Corp. Dividend policy • On June 22, 2012 the Company announced suspension of its dividend • As a result of the Dodd-Frank Act and the elimination of the OTS, our new regulator has taken a different approach with regard to the use of a dividend waiver under regulation MM • Use of the
Slide 17: Repurchase activity
Kearny Financial Corp. Repurchase activity • Repurchase summary § Kearny has authorized 7 separate repurchase plans retiring 5.8 million shares since 2005 IPO § Over the past 3 months, we have repurchased 65,900 shares at a total cost of $643,843 § Management considers the estimated second step valu
Slide 18: Strategic focus - 2013
Kearny Financial Corp. Strategic focus - 2013 • Attract and develop stronger customer relationships with a strategic focus on small and middle market businesses • Enhance current product offerings and business services • Focus on tactical cost controls while redirecting excess resources to support m
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