Kearny Financial · NASDAQ:KRNY
Kearny Financial — FY2021 Earnings Presentation
17 slides from Kearny Financial's earnings presentation, Aug 3, 2021
Slide 1: Investor Presentation Fiscal Year ended June 30, 2021
Investor Presentation Fiscal Year ended June 30, 2021 Exhibit 99.1
Slide 2: Presenters
Eric B. Heyer Senior Executive Vice President and Chief Operating Officer Keith Suchodolski Executive Vice President and Chief Financial Officer Craig L. Montanaro Director, President and Chief Executive Officer 1 Presenters
Slide 3: Forward Looking Statements
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-looking statements are subject to risks and unc
Slide 4: Non-GAAP financial measures
3 This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non-GAAP” measures in its analysis of the Company’s performance. Management believes these
Slide 5: Company Overview
4 NASDAQ: KRNY Market Cap: $955.5 million1 Founded in 1884 Top 10 New Jersey-based financial institution by assets 48 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 July
Slide 6: Financial Highlights
5 Financial Highlights Net income increased 40.6% to $63.2 million, or $0.77 per share Net interest margin increased 30 bps to 2.75% Completed acquisition of MSB Financial Corp., adding assets of $581.9 million Core non-maturity deposit growth of $712.5 million, or 27.5% Increased gain on sale of lo
Slide 7: Capital Strength
6 Capital Strength Tier 1 Leverage Ratio2 Total Risk-Based Capital Ratio2 Peer group includes BRKL, BMTC, CLBK, CNOB, DCOM, FLIC, FFIC, LBAI, EBSB, NFBK, PGC, STBA, TMP, TRST Peer group Tier 1 Leverage and Total Risk-Based Capital Ratios based on March 31, 2021 results. Source: S&P Global Market Int
Slide 8: Capital Management
7 Capital Management Capital Returned to Stockholders $714 million of capital returned to stockholders via dividends and share repurchases over the past 5 years Repurchased 10.6 million shares during the year at an average price of $11.26 per share, or 107% of 06/30/21 tangible book value Currently,
Slide 9: Earnings Performance
8 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
Slide 10: Deposits
1 As of and for the quarter ended June 30, 2021. Source: S&P Global Market Intelligence & Company Filings 9 Deposits Consolidated 15 branches over a two-year period while shifting the deposit base towards lower cost core deposit relationships Deposit Composition1 Deposit Growth Certificates of depos
Slide 11: Retail Certificates of Deposit
10 Retail Certificates of Deposit Retail Certificates of Deposit by Maturity1 1 As of June 30, 2021. Excludes $479 million of wholesale certificates of deposits. Source: Company Filings Ample opportunity exists for continued reduction in retail CD cost of funds Bar chart
Slide 12: Mortgage Banking
11 Mortgage Banking 1-4 Family Avg. LTV = 59.0% Home Equity Avg. LTV = 41.0% Residential 1-4 Family Loans Sold Source: Company Filings Principal Sold Gain on Sale Bar chart
Slide 13: Portfolio Lending
12 Portfolio Lending Loan Composition1 Geographic Distribution2 1 As of and for the quarter ended June 30, 2021 2 As of June 30, 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; foc
Slide 14: Asset Quality
13 Asset Quality Net Charge-Offs / Average Loans Non-Performing Assets / Total Assets 1 As of June 30, 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 Losse
Slide 15: M&A History and Strategy
14 M&A History and Strategy Experienced acquirer and integrator, having successfully completed 7 whole-bank acquisitions over the past 20 years Opportunistic acquisition strategy with an emphasis on: Low premium deals Similar or complementary business models Expansion in existing or contiguous marke
Slide 16: Non-GAAP Reconciliation
15 Non-GAAP Reconciliation Appendix A: Reconciliation of GAAP to Non-GAAP For the year ended For the year ended (Dollars in Thousands, June 30, June 30, Except Per Share Data) 2021 2020 Adjusted net income: Net Income (GAAP) $ 63,233 $ 44,965 Non-recurring transactions - net of tax: Bargain purchase
Slide 17: Fiscal Year Ended June 30, 2021
Investor Presentation Fiscal Year Ended June 30, 2021