Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q4 FY2024 Earnings Presentation
20 slides from Kearny Financial's earnings presentation, Jul 25, 2024
Slide 1: Investor Presentation Fourth Quarter Fiscal 2024
JULY 25, 2024 I N V E S T O R P R E S E N T A T I O N F O U R T H Q U A R T E R F I S C A L 2 0 2 4 Exhibit 99.2
Slide 2: Forward Looking Statements & Financial Measures
Forward Looking Statements & Financial Measures 2 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
Slide 3: Kearny Financial Corp.
Kearny Financial Corp. NASDAQ: KRNY Headquartered in Fairfield, NJ 43 full-service branches1 in New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of June 30, 2024. Source: S&P Global Market Intelligence & Company Filings. 3
Slide 4: Years of Serving our Communities and Clients
140 Years of Serving our Communities and Clients 4
Slide 5: 4Q24 Financial Highlights
4Q24 Financial Highlights 1 GAAP to Adjusted reconciliation on page 20. 2 Excludes Yield Adjustments. Source: Company Filings. 5 4Q24 Key Takeaways: Recognized non-cash, after-tax goodwill impairment of $95.3 million, which has no impact on our tangible book value, regulatory capital ratios, or liqu
Slide 6: Capital Strength
Capital Strength Equity Capitalization Level 1 Kearny Financial Corp. (NASDAQ: KRNY) Regulatory Capital Ratios as of June 30, 2024 are preliminary. 2 S&P U.S. Small Cap Banks Index comprised of 241 constituents, based on March 31, 2024 results. 3 Equity to Asset ratio, as of June 30, 2024, was impac
Slide 7: Conservative Underwriting Culture
7 Conservative Underwriting Culture Comprehensive CRE / Multifamily Underwriting Highly disciplined LTV and DSCR standards Interest rates stressed a minimum of +300bps at origination DSCR based on in-place rents, not projections, with conservative allowances for vacancy NOI underwritten to include f
Slide 8: Track Record of Strong Credit Performance
Track Record of Strong Credit Performance 1 Data provided by Federal Reserve Bank of St. Louis. Source: Company Filings. 8 From 2006 to 2023, inclusive of the Global Financial Crisis and the COVID-19 Pandemic, KRNY’s net charge-offs to average total loans totaled 9 bps per year compared to 50 bps fo
Slide 9: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Composition1 Geographic Distribution2Loan Trend 1 For the quarter ended June 30, 2024. 2 As of June 30, 2024. Source: S&P Global Market Intelligence & Company Filings. 9 ($ millions) 1-4 Family 30.5% Home Equity 0.8% Multi-family 46.1% CRE 16.5% Construction 3.6% C&I
Slide 10: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Loan Portfolio Composition1 New York City (“NYC”) Multifamily1 Source: Company Filings 1 As of June 30, 2024. 10 Outstanding asset quality over multiple credit cycles Less than half of our Multifamily portfolio is collateralized by properties in NYC Only 6% of
Slide 11: NYC Multifamily Loan Portfolio
NYC Multifamily Loan Portfolio 1 As of June 30, 2024. 2 Source: “New York City Multifamily In Review Report 2023” by Ariel Property Advisors; https://arielpa.nyc/investor-relations/research-reports 3 “New York City Multifamily In Review Report 2023” by Ariel Property Advisors; https://arielpa.nyc/in
Slide 12: CRE Loan Detail
CRE Loan Detail Source: Company Filings. 1 As of June 30, 2024. 12 CRE Portfolio by Collateral Type1 CRE Loan Geographic Distribution1 Retail 34.7% Mixed Use 28.5% Office 11.2% Industrial 16.6% Specialty & Other 4.6% Medical 4.4% New Jersey 57.1% Brooklyn 9.2% New York (Ex. Brooklyn) 25.8% Pennsylva
Slide 13: Office Portfolio
Office Portfolio 1 As of June 30, 2024. Source: Company Filings. 13 Office Portfolio by Contractual Maturity1 Office Loan Geographic Distribution1 Office Portfolio Profile 11.2% of total CRE portfolio or $106 million Average loan size of $1.6 million ($ millions) $0 $3 $9 $36 $18 $9 $30 $0 $5 $10 $1
Slide 14: Asset Quality Metrics
Asset Quality Metrics Non-Performing Assets / Total Assets Non-Performing Loans1 Allowance for Credit Losses 1 As of June 30, 2024; amounts shown in millions. Source: S&P Global Market Intelligence & Company Filings. 14 NPL's $39.5 MM 0.69% 0.64% 0.63% 0.50% 0.52% 0.45% 0.50% 0.55% 0.60% 0.65% 0.70%
Slide 15: Granular Deposit Franchise
Granular Deposit Franchise 1 For the quarter ended June 30, 2024. 2 As of June 30,2024; excludes wholesale and state & local government deposits. Source: S&P Global Market Intelligence & Company Filings. 15 Deposit Composition1 Deposit Trend Deposit Segmentation2Non-Maturity Deposit Mix Retail CDs 2
Slide 16: Liquidity Available for Uninsured Deposits
Liquidity Available for Uninsured Deposits Estimated Uninsured Deposits Analysis2 1 Estimated amount of uninsured deposits reported in June 30, 2024 Call Report. 2 As of June 30, 2024. 16 Available liquidity is 2.4x greater than estimated uninsured deposits (excluding items above) Liquidity Capacity
Slide 17: Investment Securities
Investment Securities 1 As of June 30, 2024. 2 Comprised entirely of securitized federal education loans with 97% U.S. government guarantees. 3 Assumes 29% marginal tax rate. Source: S&P Global Market Intelligence & Company Filings. 17 Securities Composition1 Securities Average Balance & Yield Trend
Slide 18: Best-in-Class Operating Efficiency
Best-in-Class Operating Efficiency 1 Adjusted for non-routine transactions. GAAP to Adjusted reconciliation on page 20 Source: S&P Global Market Intelligence & Company Filings. 18 Adjusted Non-interest Expense to Average Assets1 ($ millions) $68 $74 $75 $96 $114 $130 $131 $120 1 21 41 61 81 101 121
Slide 19: Tech Forward Embedded Throughout the Organization
Tech Forward Embedded Throughout the Organization 19
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation 20 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, Except Per Share Data) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June