Kearny Financial · NASDAQ:KRNY
Kearny Financial — Investor Presentation (November 2019)
17 slides from Kearny Financial's investor presentation, Nov 14, 2019
Slide 1: Investor Presentation
Investor Presentation NASDAQ: KRNY November 2019 Exhibit 99.1
Slide 2: 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 are subject to risks and uncer
Slide 3: Kearny Financial Corp. Overview
Founded in 1884 6th largest New Jersey-based financial institution by assets 48 branches in 11 counties throughout northern and central New Jersey and New York City Ample opportunity for organic growth in existing markets Top 15 deposit market share in the counties of Bergen, Hudson, Passaic, Ocean,
Slide 4: Investment Rationale
Investment Rationale Conservative lending practices and strong credit culture result in outstanding asset quality metrics Improving profitability, operating efficiency and performance metrics Investment in, and strategy built upon, technology and innovation Highly attractive deposit market demograph
Slide 5: Sizable public float and strong liquidity
Sizable public float and strong liquidity Average daily trading volume of 300,163 shares¹ Index membership Russell 2000, ABA Nasdaq Indices, Nasdaq Bank Index Track record of capital returns Over $500 million of capital returned to shareholders since fiscal 2016 Capital Strength One-year average dai
Slide 6: Normalizing Capital Ratios
Normalizing Capital Ratios Tier 1 Leverage Ratio Tier 1 Risk Based Capital Ratio Peer group is defined on page 15 Source: S&P Global Market Intelligence; Bank level financial numbers used where unavailable at the holding company Total Risk-Based Capital Ratio
Slide 7: Improving Performance Metrics
Improving Performance Metrics Net Income & Return on Assets1 Efficiency Ratio Return on Equity1 Although management believes these 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 financial measure
Slide 8: Loan Portfolio Growth
Loan Portfolio Growth Kearny Financial Corp. Historical Loan Growth (dollars in millions) 3.25-Year CAGR: 18.2% Fiscal 2020 focused on Recruiting seasoned lenders to expand upon existing expertise in C&I, SBA and construction lending Lifting out small teams of residential lenders to fill in strategi
Slide 9: Loan Portfolio Composition
Loan Portfolio Composition $4.6 billion in loans receivable, representing 69.3% of assets Emphasis on loan portfolio diversification Average loan-to-value (LTV)1: 1-4 Family 48.6% Multifamily60.9% CRE46.4% Construction & Land44.5% Home Equity36.9% September 30, 2019 Loan Portfolio Loan Portfolio Geo
Slide 10: Strong Asset Quality
Conservative underwriting standards, dedicated special assets group and prompt attention to potential problem loans supports a track record of consistently strong asset quality metrics ALLL coverage ratio declined in fiscal 2018 due to acquisition-related purchase accounting adjustments Strong Asset
Slide 11: Deposits
Deposits $4.20 billion in deposits as of September 30, 2019 Consolidated 7 branches in calendar year 2019 with negligible loss in deposits Forthcoming expansion in attractive deposit markets (Cliffside Park, North Bergen, Staten Island NY) Shifting deposit base towards more valuable, lower cost core
Slide 12: M&A History and Strategy
M&A History and Strategy Experienced acquirer and integrator, having successfully completed 6 bank acquisitions over the past 20 years Opportunistic acquisition strategy with a focus on Low premium deals Similar or complementary business models Expansion in existing or contiguous markets Cultural co
Slide 13: FY 2020 Strategic Focus
Grow & diversify loan portfolio C&I / SBA Construction Grow & diversify deposit base Expanded treasury management suite Utilization of CRM to expand relationships & target single service clients Leverage technology, including online account opening Continual improvement of the client experience Expa
Slide 14: FY 2020 Strategic Focus: Capital Deployment
FY 2020 Strategic Focus Continue to prudently deploy capital Dividends - $0.37 paid during fiscal 2019, representing an 81% payout ratio Share repurchases - 33.6 million shares repurchased through 9/30/2019 Mergers & acquisitions Acquire top-tier talent Seasoned bankers Entrepreneurial spirit Techno
Slide 15: Digital Transformation
Digital Transformation Recent digital deployments Online account opening Digital wallet (Apple Pay / Google Pay) Credit score monitoring Newly redesigned mobile optimized website EnAct Customer Relationship Management (CRM) Current initiatives Bank-wide Data Analytics platform Enhanced escrow manage
Slide 16: Peer Group Valuation Comparison
Peer Group Valuation Comparison Note: Market data as of November 8, 2019 Source: S&P Global Intelligence
Slide 17: Management Team
Management Team Name Title Years in Banking Years at KRNY Selected Biography with KRNY Craig L. Montanaro President & Chief Executive Officer 31 16 Mr. Montanaro was appointed to serve on the Board of Directors of Kearny Financial Corp. and Kearny Bank in 2010. He was appointed President and Chief E
Kearny Financial — Investor Presentation (November 2019) on 6ix