Kearny Financial · NASDAQ:KRNY
Kearny Financial — Shareholder Meeting (October 2014)
21 slides from Kearny Financial's shareholder meeting presentation, Oct 30, 2014
Slide 1: 2014 Annual Meeting
Exhibit 99.2 2014 ANNUAL MEETING =~ KEARNY FINANCIAL CORP.
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 and the New York metro area. • By providing a superior level of service, we hope to earn long- term loyalty and become a
Slide 4: Company Overview
Company Overview • Founded in 1884 th • 3 Largest publicly traded mutual holding company in the country th • 6 Largest financial institution headquartered in New Jersey • Market capitalization ($896.1 million) ($ Millions) 6/30/2014 Assets $3,510 Net Loans $1,729 Deposits $2,480 Equity $495 Tang. Co
Slide 5: Background: Our Strengths
Kearny Financial Corp. Background Our Strengths Progressive community bank Experienced management team Seasoned acquirer and integrator Best of breed technology platform Stable financial condition Well-capitalized balance sheet 5
Slide 6: Growth through strategic mergers & acquisitions
Kearny Financial Corp. Background Growth through strategic mergers & acquisitions Seller Completed Type Assets Branches ($000) st 1 Bergen Bancorp 3/31/1999 Thrift 300,755 4 Pulaski Bancorp, Inc. MHC 10/18/2002 Thrift 237,596 6 West Essex Bancorp 7/1/2003 Thrift 390,333 8 Central Jersey Bancorp 11/3
Slide 7: Deposit Franchise
Deposit Franchise Strong deposit franchise KRNY (42) 6 th largest New Jersey based deposit franchise $59.0 million in average deposits per branch 42 branch locations across 11 counties throughout Northern and Central New Jersey, and the greater New York City area $2.48 billion in deposits as of June
Slide 8: Deposit Market Demographics
Deposit Market Demographics …with the ability to attract customers from across our footprint Kearny MHC - Deposit Market Share by County Mkt. Pct. Of Kearny Median HH Projected HH Projected Deposits Share MHC Deposits Income Income Change Population Change County Branches ($M) (%) (%) ($) 2014-2019
Slide 9: Deposit composition and strategies
Kearny Financial Corp. Deposit composition and strategies Deposits - June 30, 2007 Deposits - June 30, 2014 Jumbo Time Demand NOW Deposits Jumbo Time Demand 9% 14% 14% Deposits 4% 4% NOW 7% MMDA & MMDA & Savings Retail Time Savings Retail Time 36% Deposits Deposits 28% 47% 37% • Internal Strategies
Slide 10: Composition of loan portfolio
Kearny Financial Corp. Composition of loan portfolio June June June June June June June June 2007 2008 2009 2010 2011 2012 2013 2014 1-4 Family 64.5% 66.9% 65.9% 65.5% 48.2% 43.8% 36.8% 39.1% CRE & Multifamily 18.4% 17.4% 18.9% 20.0% 30.3% 37.8% 49.0% 56.2% Construction 1.3% 1.2% 1.3% 1.5% 1.7% 1.6%
Slide 11: Organic loan growth strategies
Kearny Financial Corp. Organic loan growth strategies • Expand upon expertise in commercial real estate, multifamily, and SBA lending Continue to hire additional commercial lending personnel to increase market share Business development officers continue to work collaboratively with the retail branc
Slide 12: Commercial lending success continues
Kearny Financial Corp. Commercial lending success continues 12
Slide 13: NPA / Assets trend
Kearny Financial Corp. NPA / Assets trend NPAs / Assets Industry Comparison: NPAs / Assets 1.50 1.60% 1.51% 1.40 1.40% 1.30 1.31 1.40% 1.26% 1.30 1.23 1.18 1.20% 1.20 1.11 1.10 1.00% 0.87% 0.98 0.80% 1.00 0.93 0.87 0.60% 0.90 0.80 0.40% 0.70 0.20% 0.60 0.00% Sep Dec Mar Jun Sep Dec Mar Jun KRNY All
Slide 14: Summary income statement
Kearny Financial Corp. Summary income statement (dollars in thousands, except EPS) FY 2012 FY 2013 FY 2014 Net Interest Income $70,180 $66,257 $73,821 Provision for Loan Losses 5,750 4,464 3,381 Loss on sale and write down of REO (3,330) (775) (441) 1 Gain on Sale of Securities 47 10,427 1,517 Other
Slide 15: Net Interest Margin
Kearny Financial Corp. Net Interest Margin 4.00% 3.65% 3.75% 3.59% 3.50% 3.34% 3.40% 3.44% 3.38% 3.24% 3.00% 2.83% 2.81% 2.79% 2.65% 2.43% 2.54% 2.50% 2.44% 2.50% 2.00% 1.50% 1.00% 2007 2008 2009 2010 2011 2012 2013 2014 1 KRNY NJ Peers (1) NJ Peers includes all public banks and thrifts headquartere
Slide 16: Strategic review - 2014
Kearny Financial Corp. Strategic review - 2014 • Completed Bank technology platform conversions Q3 2014 • Restructured SBA Lending group • Closed Atlas Bank acquisition June 30, 2014 • Developed Executive & Employee Compensation programs to align with company strategic goals, probability focus, and
Slide 17: Strategic Focus - 2015: Second Step Summary
Kearny Financial Corp. Strategic Focus - 2015 Second Step Summary On September 5, 2014 Kearny filed a registration statement in connection with its second step conversion from a mutual holding company to a stock holding company Reasons for the offering Support growth Eliminate uncertainties associat
Slide 18: Strategic Focus - 2015
Kearny Financial Corp. Strategic Focus - 2015 • Close second step offering • C&I business team build-out expected to occur over the next three quarters • Continue to expand the commercial lending team in NYC via LPO • Develop regional advisory board of COIs to help with loan growth and relationship
Slide 19: Strategic Focus - 2015
Kearny Financial Corp. Strategic Focus - 2015 19
Slide 20: Strategic Focus - 2015
Kearny Financial Corp. Strategic Focus - 2015 • Enhance current product offerings and business services utilizing the Bank’s new technology platforms – “Mobiliti” - a new mobile banking /payment services application – “Popmoney” – a quick and secure way for customers to send and receive money – “Ope
Slide 21: Strategic Focus - 2015
Kearny Financial Corp. Strategic Focus - 2015 21
Kearny Financial — Shareholder Meeting (October 2014) on 6ix