Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (May 2014)
24 slides from Oceanfirst Financial's investor presentation, May 21, 2014
Slide 1: OceanFirst Financial Corp. Investor Presentation May 2014
Exhibit 99.1 OceanFirst Financial Corp. INVESTOR PRESENTATION MAY 2014 NASDAQ: OCFC 1
Slide 2: Forward Looking Statements
OceanFirst Financial Corp. Forward Looking Statements: This presentation contains certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These for
Slide 3: 112 Years of Growth and Capital Management
112 Years of Growth and Capital Management Founded in Point Pleasant, NJ, in 1902, OceanFirst has grown from a small one-town savings and loan to a full-service community bank serving the Central New Jersey Shore. Demutualized in 1996 and over the ensuing 11 years generated value for shareholders, l
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Middlesex Community Bank serving the Central Jersey Shore - $2.3 billion in assets and Mercer (! Monmouth 23 branch offices Market Cap $289 million Philadelphia Core deposits – 87.5% of total deposit
Slide 5: Experienced Executive Management Team
Experienced Executive Management Team # of Years in # of Years Name Position Banking at OCFC John R. Garbarino Chairman, Chief Executive Officer 43 43 Christopher D. Maher President, Chief Operating Officer 26 1 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 32 21 Joseph R.
Slide 6: Our Strategy
Our Strategy Positioned as the leading Community Bank in attractive Central Jersey Shore market – developing the franchise, growing revenue and creating additional value for shareholders Strategically focused on revenue growth in commercial lending, wealth management, and bankcard services Guarding
Slide 7: Significant Primary Market Deposit Share
Significant Primary Market Deposit Share Competing Favorably Against Banking Behemoths # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 TD Bank, National Association (Canada) 21 2,460,349 16.88 2 Hudson City Bancorp Inc. (NJ)(1) 14 2,415,792 16.57 3 Wells Fargo Ban
Slide 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition NASDAQ: OCFC 9
Slide 10: Highlights – First Quarter 2014
Highlights – First Quarter 2014 Grew commercial loan portfolio by $27.5 million, 18.7% annualized Earnings per share of $0.28 resulting in a 8.7% ROE & 0.83% ROA Net interest margin has stabilized at 3.36%, above the historical average of 3.28% Strong capital position – tangible common equity of 9.5
Slide 11: Stabilized NPL's in a Diversified Portfolio
Stabilized NPL’s in a Diversified Portfolio Exposure Primarily in Lower Risk Residential Data as of December 31, unless otherwise indicated. (1)Increase attributable to Superstorm Sandy. NASDAQ: OCFC 11
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for Credit Costs $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 12/31/09 12/31/10 12/31/11(1) 12/31/12(2) 12/31/13 3/31/14 (Annualized) Net Charge-Offs Provision for Loan Losses (1)Spike in charge-offs was due to a change in charge-off policy to recognize the charge-off when the loan is de
Slide 13: Net Interest Margin
Net Interest Margin Stabilizing Close to Historical Levels NASDAQ: OCFC 13
Slide 14: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.90% 0.80% $16.1M 0.70% Targeted 0.60% Growth Areas 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 3/31/14 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Wealth Management 2011 Non-Interest Inco
Slide 15: Generating Consistent Attractive Returns
Generating Consistent Attractive Returns 14.0% 1.40% 12.0% 1.20% 10.0% 1.00% 8.0% 0.80% 6.0% 0.60% 4.0% 0.40% 2.0% 0.20% 0.0% 0.0% 2009 2010 2011 2012 2013 (1) 3/31/2014 (Annualized) Return on Equity Return on Assets (1) Excludes after-tax impact of $3.1 million in non-recurring charges related to s
Slide 16: Prudently Managing Capital
Prudently Managing Capital $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 2011 2012 2013 Stock Repurchases Cash Dividends Note: Stock Repurchases –$14.37 Average Cost per Share 2011 NASDAQ: OCFC 16
Slide 17: Challenge Today is to Grow Revenue, Build Shareholder Value
Challenge Today is to Grow Revenue Build Shareholder Value Target growth within existing market – increasing share Commercial loans outstanding has experienced double digit growth rate for three consecutive quarters Continuing Strategic Execution FHLB Advances restructured in Q4 Rationalizing Branch
Slide 18: Why OCFC…?
Why OCFC…? Fundamental franchise value –superior market demographics Well-established bank with a 112 year history in the market Crisis tested management team Sandy response and experience Substantial insider ownership –aligned with shareholders’ interests Succession planning affirmed – 2014 Attract
Slide 19: Thank You for Your Interest in OceanFirst Financial Corp.
THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. NASDAQ: OCFC 19
Slide 20: Superstorm Sandy Recovery Providing Market Opportunity
Superstorm Sandy Recovery APPENDIX 1 Providing Market Opportunity OceanFirst Loan Portfolio Performed Well Damage Estimate ( FEMA 2012): 50,103 structures damaged were located in Monmouth and Ocean County 3,033 structures classified as major damage or totally destroyed Multi-Year Recovery Horizon 4,
Slide 21: Market Demographics
APPENDIX 2 Market Demographics Ocean Monmouth Middlesex New Jersey National Number of Offices 20 5 1 % of OceanFirst Deposits 86.6 10.3 3.1 Market Rank 4 18 36 Market Share (%) 10.2 0.9 0.2 Population 577,000 635,000 816,000 Projected 2012-2017 1.6 1.0 2.1 1.2 3.5 Population Growth (%) Median Househ
Slide 22: Residential Portfolio Metrics
APPENDIX 3 Residential Portfolio Metrics Residential Real Estate Total Portfolio $786.5 million % of Total Loan Portfolio 49.1% Average size of mortgage loans $190,000 Interest-only loans $26.7 million - % of total 1-4 family loans 3.4% - Weighted average loan-to-value ratio (using original or most
Slide 23: Commercial Portfolio Metrics
APPENDIX 3 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate (CRE) Total portfolio (1) $550.8 million % of Total Loan Portfolio 34.4% Average size of CRE loans $820,000 Largest CRE loan $14.6 million (Secured by local university dormitory housing) Current Pipeline $33.2 million Weighted A
Slide 24: Commercial Portfolio Segmentation
APPENDIX 3 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure Real Estate Investment by by Industry Classification Property Classification Miscellaneous, 19.1% Office, 31.5% Miscellaneous, 6.1% Multi-Family, 2.5% Public Administration, 6.4% Retail Store, 9.6% Educational Servi
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