Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q3 2022 Earnings Presentation
15 slides from Kearny Financial's earnings presentation, Apr 28, 2022
Slide 1: Investor Presentation Third Quarter Fiscal 2022
INVESTOR PRESENTATION THIRD QUARTER FISCAL 2022
Slide 2: 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 3: Company Overview
Company Overview NASDAQ: KRNY NEW YORK Market Cap: $877.8 million1 SUSSEX PASSAIC Founded in 1884 BERGEN WARREN MORRIS Top 10 New Jersey-based financial institution by assets ESSEX HUDSON KINGS UNION 45 full-service branches2 in 12 counties throughout HUNTERDON RICHMOND northern and central New Jers
Slide 4: Financial Highlights
Financial Highlights Balance Sheet 2022Q3 2022Q2 ($ in billions) Total Assets $7.39 $7.19 Total Loans $5.00 $4.83 Total Deposits $5.53 $5.45 Profitability and Performance Ratios 2022Q3 2022Q2 ($ in millions) Net Income $17.7 $18.8 Net Interest Income $47.7 $48.7 Net Interest Margin 2.89% 2.96% Effic
Slide 5: Equity & Capitalization
Equity & Capitalization Equity Capitalization Level Regulatory Capital Ratios1,2 19.28% 16.99% 16.97% 16.04% 16.39% 16.39% 14.32% 14.87% 12.93% 11.69% 12.23% 11.04% 10.33% 9.09% 8.40% 16.53% 14.19% 13.29% 11.72% 10.33% 2018FY 2019FY 2020FY 2021FY 2022Q3 Tang. Common Tier 1 Common Equity Tier 1 Risk-
Slide 6: Capital Management
Capital Management Cumulative Capital Returned to Stockholders1 ($ millions) $1,000 $862 $800 $743 $145 $122 $596 $600 $502 $94 $69 $400 $327 $717 $36 $621 $502 $200 $433 $291 $0 2018FY 2019FY 2020FY 2021FY 2022Q3 Repurchase of Common Stock Dividends Paid Repurchased 2.0 million shares during the qu
Slide 7: Earnings Performance
Earnings Performance Net Income & Return on Assets1 Sustained growth trajectory in net income, earnings per share and return on assets Annualized Q3 EPS represents a 36% increase from Fiscal 2021 Earnings per Share1 $1.25 $1.05 $1.00 $1.04 $0.79 $0.78 $0.77 $0.75 $0.55 $0.50 $0.46 $0.24 $0.25 $0.00
Slide 8: Deposits
Deposits Deposit Composition1 Deposit Growth ($ millions) $6,000 $5,485 $5,529 $594 $622 9.8% 11.2% $5,000 $4,430 $4,074 $4,147 $419 $4,000 $312 $309 $1,902 $2,155 20.3% $843 $1,264 $1,001 $3,000 $791 $744 $1,111 $907 $1,089 39.0% $302 $2,000 $189 $67 $479 $541 19.7% $1,000 $1,828 $1,902 $1,773 $1,3
Slide 9: Mortgage Banking
Mortgage Banking Residential 1-4 Family Loans Sold ($ millions) $300 $282.3 $285.4 $10 $250 $8 $200 $165.5 $6 $5.1 $150 $4 $3.2 $100 $78.8 $2.3 $54.3 $2 $50 $0.7 $0.5 $0 $0 2018 FY 2019 FY 2020 FY 2021FY 2022YTD Principal Sold Gain on Sale $300 ($ millions) $10 $282.3 $285.4 $250 $8 $200 $6 $5.1 $16
Slide 10: Portfolio Lending
Portfolio Lending Loan Composition1 Loan-to-Value by Real Estate Secured Segment2 Geographic Distribution2 3.4% Other 0.1% Pennsylvania 2.6% 2.4% 4.9% 21.6% 30.4% New York 37.7% New Jersey 0.8% 54.8% 41.3% 1-4 Family Home Equity Multifamily CRE C&D Consumer Commercial Strategy designed to grow and d
Slide 11: Asset Quality
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 0.10% 1.50% 0.08% 0.07% 1.25% 1.10% 1.10% 1.00% 0.06% 0.75% 0.55% 0.03% 0.03% 0.04% 0.02% 0.50% 0.31% 0.27% 0.02% 0.00% 0.25% 0.00% 0.00% 2018FY 2019FY 2020FY 2021FY 2022YTD 2018FY 2019FY 2020FY 2021FY 2022Q3 Non-Perf
Slide 12: M&A History and Strategy
M&A History and Strategy Experienced acquirer and integrator, having successfully completed 7 whole-bank acquisitions over the past two decades Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous marke
Slide 13: Technology Roadmap
Technology Roadmap Omni-channel sales and service model Traditional in-branch products available online and via mobile channels Adoption of Glia, a next-generation digital client service solution Acquisition of best-in-breed digital and mobile banking front-end solutions Streamline the client experi
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation Appendix A: Reconciliation of GAAP to Non-GAAP For the quarter ended For the quarter ended For the quarter ended For the nine-months ended (Dollars in Thousands, September 30, December 31, March 31, March 31, Except Per Share Data) 2021 2021 2022 2022 Adjusted net income: Net
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Appendix B: Reconciliation of GAAP to Non-GAAP For the year ended For the year ended For the year ended For the year ended For the quarter ending For the quarter ending (Dollars in Millions) June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 December 31, 2021 March 31, 2