Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — KBW Community Bank Investor Conference 2008
22 slides from Oceanfirst Financial's conference presentation, Jul 30, 2008
Slide 1: KBW Community Bank Investor Conference, July 30, 2008
NASDAQ: OCFC 1 KBW COMMUNITY BANK INVESTOR CONFERENCE JULY 30, 2008 Exhibit 99.1 OceanFirst Financial Corp. OceanFirst Financial Corp. John R. Garbarino, Chairman, President & CEO John R. Garbarino, Chairman, President & CEO Vito R. Nardelli, Executive Vice President & COO Vito R. Nardelli, Executiv
Slide 2: Forward-looking statements
NASDAQ: OCFC 2 This presentation contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “ant
Slide 3: OceanFirst Financial Today
NASDAQ: OCFC 3 Holding Company for the 106 year old financial services firm serving the community banking needs of the attractive Central New Jersey Shore growth market between the major metropolitan areas of New York City and Philadelphia $1.9 Billion in Assets – 22 OceanFirst Bank branches within
Slide 4: Attractive Market Area
NASDAQ: OCFC 4 Attractive Market Area Attractive Market Area
Slide 5: Ocean County – Fastest Growing County in NJ
NASDAQ: OCFC 5 562,000 people in Ocean County in 2006 9.4% increase since 2000 Outpacing NJ (3.6% increase) Outpacing US (5.3% increase) $54,820 Ocean County median household income in 2006 12.7% increase since 2000 83% Home ownership in Ocean County Outpacing NJ (65%) Outpacing US (66%) Source: US
Slide 6: Ocean County Deposit Market Share
NASDAQ: OCFC 6 Total # of Deposits Market Bank Branches (000) Share % Commerce (TD Bank) 20 $1,753,891 14.9 Wachovia 28 $1,729,790 14.7 Hudson City Savings 12 $1,687,719 14.3 Sovereign 26 $1,445,889 12.3 OceanFirst 16 $1,184,539 10.1 Bank of America 28 $1,049,874 8.9 Source: FDIC – Data as of June 3
Slide 7: Growth Opportunities in Market
NASDAQ: OCFC 7 Growth Opportunities in Market Growth Opportunities in Market New Branches Committed Monmouth Wall (2 Office) 2009 Ocean Bayville October 2008 Toms River (2 Office) 2009 Toms River Headquarters nd nd
Slide 8: CHL – Nonprime Lending Exit
NASDAQ: OCFC 8 - Covering 93.1% ($447.2 million) of Total Exposure $ 23.6 Million Total Provision Made and Losses Taken on Non-Prime Sold Loans to date (Pre-Tax) $ 1.7 Million Reserve for Repurchased Loans at June 30, 2008 $ 2.4 Million Repurchase Requests Outstanding at June 30, 2008 Loans Retained
Slide 9: In this Environment……Managing Conservatively
NASDAQ: OCFC 9 Recovering from CHL shutdown Lingering expenses remain Enterprise-wide Risk Management matures New CRO recruited July, 2008 Exercise discipline/restraint in growth initiatives Conserving precious capital Take what the market gives, without forcing growth Looking at opportunities creat
Slide 10: 2007/2008 Balance Sheet Has Contracted
NASDAQ: OCFC 10 0 500 1000 1500 2000 2500 At December 31, unless otherwise indicated 2007/2008 Balance Sheet Has Contracted Helping Manage Capital Ratios
Slide 11: CD's Have Been Allowed To Runoff
NASDAQ: OCFC 11 0 200 400 600 800 1000 1200 1400 1600 Core Deposits CD's At December 31, unless otherwise indicated. Core deposits include all deposits other than certificates. CD’s Have Been Allowed To Runoff CD’s Have Been Allowed To Runoff Core Deposits Increase to 68.8% of Total
Slide 12: Residential Mortgage Portfolio Has Declined
NASDAQ: OCFC 12 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Consumer Commercial Residential Mortgage At December 31, unless otherwise indicated. Residential Mortgage Portfolio Has Declined Residential Mortgage Portfolio Has Declined Commercial and Consumer Grow Modestly
Slide 13: Current External Challenges
NASDAQ: OCFC 13 Looming recession/return of inflation? Uncertainty of next Fed moves Aggressive CD pricing pervading the market Pressuring costs to fund growth Credit market turmoil continues Another round of mark to market impairments? Tenuous credit quality – real estate valuations Residential hit
Slide 14: Three Year Business Plan Imperatives
NASDAQ: OCFC 14 A challenging return to double-digit EPS growth rates Conserve Bank capital in uncertain environment, preserving the capacity to provide liquidity for holding company operations Focus on disciplined core account development and commercial lending in pursuit of longer term portfolio m
Slide 15: Longer Term Targets Need to Reset
NASDAQ: OCFC 15 2Q 08 2010 Bank Core Capital 7.8% 7.0% min Bank Risk Based Capital 12.7% 12.0% min Core Deposit Mix 69.0% 72.0% Commercial & Consumer Loan Mix 35.0% 38.0% Revenue Mix (percent of total revenue) • Fee and Service Charge 16.0% 20.0% Longer Term Targets Need to Reset Longer Term Targets
Slide 16: Bank Regulatory Capital Levels are Strengthened
NASDAQ: OCFC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Risk Based Core Internal Capital Floors are 7% and 12% in this environment. 2006 2007 2008 Well- Capitalized Well- Capitalized Floor Floor NASDAQ: OCFC 16 Bank Regulatory Capital Levels are Strengthened Bank Regulatory Capital
Slide 17: Earnings and Net Interest Margin Have Rebounded
NASDAQ: OCFC NASDAQ: OCFC 17 -0.50 -0.40 -0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40 0.50 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 0 0.5 1 1.5 2 2.5 3 3.5 Earnings Per Share Net Interest Margin Note: Second quarter 2008 reflects operating earnings per share excluding the effect of an other than temporary impairmen
Slide 18: Core Deposit Funding
NASDAQ: OCFC 18 22 Branches within a tightly defined footprint provide significant presence, market share TD Bank/Commerce removes toughest retail competitor - other banks’ adverse publicity continues Disciplined de novo branching and core deposit generation Over 12 years, 14 branches have opened wi
Slide 19: Credit Risk Constrained by Portfolio Characteristics
NASDAQ: OCFC 19 Commercial Lending Diversified, low risk $365 million portfolio Commercial real estate - 85% $533,000 average $533,000 average C & I - 15% $135,000 average Only 7 large relationships, $7 to $13.1 million exposures Negligible exposure to residential construction lending No large, spec
Slide 20: Non-Interest Income Initiatives
NASDAQ: OCFC 20 Largest reverse mortgage originator headquartered in NJ, one of a handful of select, nationwide FNMA seller/servicers Projecting $1.2 million in 2008 Trust Department revenues continue to grow Projecting $1.4 million in 2008 $126 million assets under management (12/31/07) Increasing
Slide 21: Building Additional Shareholder Value
NASDAQ: OCFC 21 In the long run, we hope you agree the following undoubtedly create value for the long term OCFC investor: Lower risk, streamlined business plan without the mortgage bank subsidiary, delivering quality earnings stream Maturing Enterprise-wide Risk Management commitment rebuilds Ocean
Slide 22: Thank you for your interest in OceanFirst Financial Corp.
NASDAQ: OCFC 22 Thank you for your interest in OceanFirst Financial Corp. Thank you for your interest in OceanFirst Financial Corp.
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