Kearny Financial · NASDAQ:KRNY
Kearny Financial — Q2 2022 Earnings Presentation
15 slides from Kearny Financial's earnings presentation, Mar 9, 2022
Slide 1: Investor Presentation Second Quarter Fiscal 2022
Investor Presentation Second Quarter Fiscal 2022 Exhibit 99.1
Slide 2: Presenters
Keith Suchodolski Executive Vice President and Chief Financial Officer Craig L. Montanaro Director, President and Chief Executive Officer Presenters 1
Slide 3: Forward-looking statements and non-GAAP disclaimer
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 uncer
Slide 4: Company Overview
NASDAQ: KRNY Market Cap: $974.0 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 45 full-service branches2 in 12 counties throughout northern and central New Jersey and New York City Active acquirer, having completed 7 whole-bank acquisitions since 1999 1 As of Februa
Slide 5: Financial Highlights
Financial Highlights Source: Company Filings 1 Non-interest expense divided by the sum of net interest income and non-interest income. 2 Annualized. Balance Sheet 2022Q2 2022Q1 (in $ billions) Total Assets $7.19 $7.18 Total Loans $4.83 $4.79 Total Deposits $5.45 $5.40 Profitability and Performance R
Slide 6: Equity & Capitalization
Equity & Capitalization Equity Capitalization Level Regulatory Capital Ratios1,2 Tier 1 Leverage and Total Risk-Based Capital Ratios based on December 31, 2021 results. S&P U.S. Broad Market Index (“BMI”) Banks Index, Mid-Atlantic region based on September 30, 2021 results. Source: Company Filings N
Slide 7: Capital Management
Capital Management Cumulative Capital Returned to Stockholders1 Source: Company Filings 1 Since conclusion of second step conversion in May 2015. ($ millions) Repurchased 2.3 million shares during the quarter at an average price of $13.10 per share 5.1 million shares are available for repurchase pur
Slide 8: Earnings Performance
Earnings Performance Net Income & Return on Assets1 Earnings per Share1 1 Although management believes core net income, EPS and ROAA, which are non-GAAP measures, are useful to investors by providing a greater level of understanding of its business, they should not be considered a substitute for fin
Slide 9: Deposits
1 As of and for the quarter ended December 31, 2021. Source: S&P Global Market Intelligence & Company Filings Deposits Deposit Composition1 Deposit Growth ($ millions) Consolidated 26% of branches over a three-year period, including three consolidations completed in Q2 FY 2022 Replaced higher cost R
Slide 10: Mortgage Banking
($ millions) Mortgage Banking Residential 1-4 Family Loans Sold Source: Company Filings Mortgage Banking remains a noteworthy contributor to non-interest income $300 ($ millions) $10 $282.3 $285.4 $262.8 $250 $8 $200 $6 $5.1 $150 $3.8 $4 $3.2 $100 $78.8 $131.4 $54.3 $2 $50 $0.7 $1.9 $0.5 $0 $0 2018
Slide 11: Portfolio Lending
Portfolio Lending Loan Composition1 Geographic Distribution2 1 As of and for the quarter ended December 31, 2021 2 As of December 31, 2021 Source: S&P Global Market Intelligence & Company Filings Loan-to-Value by Real Estate Secured Segment2 Strategy designed to grow and diversify the loan portfolio
Slide 12: Asset Quality
Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 1 As of December 31, 2021; amounts shown in millions 2 The Company adopted CECL methodology effective FY 2021 Q1 Source: S&P Global Market Intelligence & Company Filings Non-Performing Loans1 Allowance for Credit Loss
Slide 13: 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 14: 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 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation Appendix A: Reconciliation of GAAP to Non-GAAP For the quarter ended For the quarter ended For the six-months ended (Dollars in Thousands, December 31, September 30, December 31, Except Per Share Data) 2021 2021 2021 Adjusted net income: Net Income (GAAP) $18,769 $19,715 $38,