Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Sandler O'Neill & Partners Financial Services Conference 2005
18 slides from Oceanfirst Financial's conference presentation, Nov 15, 2005
Slide 1: OceanFirst Financial Corp. at Sandler O'Neill Financial Services Conference
NASDAQ: OCFC OceanFirst Financial Corp. John R. Garbarino, Chairman, President & CEO Michael J. Fitzpatrick, Executive Vice President & CFO SANDLER O’NEILL & PARTNERS, L.P. FINANCIAL SERVICES CONFERENCE NOVEMBER 17, 2005 Exhibit 99.1
Slide 2: Forward-looking statements
NASDAQ: OCFC 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”, “ an
Slide 3: OceanFirst Financial Today
NASDAQ: OCFC $2.0 Billion in Assets – 18 OceanFirst Bank branches within a tightly defined market area and 2 satellite loan production offices (lpo) Columbia Home Loans, LLC. (CHL) – wholly owned mortgage banking subsidiary headquartered in Westchester County, New York with offices in the greater NY
Slide 4: Eight Plus Years of Delivering Shareholder Value
NASDAQ: OCFC 9/30/2005 12/31/1996 CAGR Total Loans $1,697,679,000 $690,306,000 10.8% Core Deposits 883,847,000 317,070,000 12.4% Last 12 Months Year Ended Sept. 30, 2005 Dec. 31, 1997 CAGR EPS $1.60 $.59 13.7% Annual Dividend .80 .27 15.0% ROE 14.5% 6.0% 12.0% Fee and Service Charge Income $9,094,00
Slide 5: Business Plan 2005
NASDAQ: OCFC Focus on disciplined de novo branch and core account development to drive asset/revenue growth Target commercial lending as the focus of portfolio growth, improving the loan portfolio mix Grow non-interest income as the primary driver of top-line revenue through the maturation of recent
Slide 6: Recently Improved Operating Results
NASDAQ: OCFC Completed Successful Management Reorganization through 2004/2005 • Vito R. Nardelli appointed Chief Operating Officer in September 2005 Return of Balance Sheet Growth – 2004/2005 Deposit Growth Loan Growth 2004 11.0% - $126 million 8.1% - $117 million 9 mos. ending Sept. 30, 2005 *10.4%
Slide 7: Last 4 Quarters EPS Have Rebounded
NASDAQ: OCFC $0.10 $0.13 $0.16 $0.19 $0.22 $0.25 $0.28 $0.31 $0.34 $0.37 $0.40 $0.43 $0.46 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 40¢ share - up 25.0%, 14.3%, 17.6% and 14.3% over prior year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Quarters Last 4 Quarters E
Slide 8: Retail Branch In-Market Growth
NASDAQ: OCFC Disciplined de novo branching and core deposit generation • From 1996 through 3Q ‘05, 10 branches were opened - average core deposit mix of 74% Current branch activity in our growth market • Whiting branch to be relocated to a more convenient, prominent location (1Q ‘06) • New Little Eg
Slide 9: The Changing Deposit Mix
NASDAQ: OCFC 2007 Goal December 31, 1996 September 30, 2005 The Changing Deposit Mix Savings & MMDA 26% CD’s 66% Checking 8% Savings & MMDA 28% Savings & MMDA 35% Checking 36% Checking 40% CD’s 36% CD’s 25%
Slide 10: Loan Portfolio Supporting Revenue Growth
NASDAQ: OCFC Commercial Lending Growth Continues • 2004 Growth…………………………….. 17.9% - $46 million 2005 Growth (through Sept. 30)..……..*19.3% - $44 million * 2005 percentage growth is annualized • Diversified, low risk $349 million portfolio Commercial real estate - 80% $567,000 average C & I - 20% $21
Slide 11: The Changing Loan Portfolio Mix
NASDAQ: OCFC December 31, 1996 September 30, 2005 2007 Goal The Changing Loan Portfolio Mix Consumer 5% Residential 93% Commercial 2% Consumer 9% Commercial 21% Commercial 27% Residential 64% Consumer 8% Residential 71%
Slide 12: Non-Interest Income Driving Revenue Growth
NASDAQ: OCFC CHL 3Q ‘04 acquisition of a consumer direct lending platform • Alternate delivery channel boosts CHL’s production by $200 million • Immediate earnings accretion Trust Service fees have grown 35% for the first nine months of 2005 as compared to the same prior year period • Accretive to t
Slide 13: Non-Interest Income as a % of Revenue
NASDAQ: OCFC December 31, 1996 September 30, 2005 Excluding gain (loss) on sales of securities. 2007 Goal Non-Interest Income as a % of Revenue Non-Interest Income 93% Net Interest Income 67% Net Interest Income 33% Non-Interest Income 72% Net Interest Income Non-Interest Income 28% 7%
Slide 14: Capital Management - Historical
NASDAQ: OCFC First mutual thrift conversion to include a charitable foundation Repurchased 16.1 million shares, 59% of original issue • Announced twelfth repurchase program in October 2005 for an additional 5% of outstanding shares 100% stock dividend – 1998; 50% stock dividend – 2002 Quarterly cash
Slide 15: Capital Management - Prospective
NASDAQ: OCFC OceanFirst Foundation performing as expected – without bottom-line dilution Capital leveraged appropriately Continued share repurchases and aggressive cash dividend payout ratios Balance sheet expansion driven by commercial loan and core deposit growth Raise Tier 2 debt capital, as nece
Slide 16: Building Additional Shareholder Value
NASDAQ: OCFC In the long run, we think the following factors undoubtedly create value for the long term OCFC investor EPS Growth Restoration of EPS growth for 2005-2007 periods Balance Sheet & Revenue Expansion Grow the balance sheet in excess of 6% annually Increase total revenue minimum of 7% each
Slide 17: Building Additional Shareholder Value (cont'd.)
NASDAQ: OCFC Effective Risk Management Chief Risk Officer directing Enterprise-wide Risk Management Net charge-offs amounted to approximately 3 basis points of average net loans from 1997 through 2004 Interest Rate Risk controlled in transitional environment Franchise Value Enhancement Successful co
Slide 18: Thank you for your interest in OceanFirst Financial Corp.
NASDAQ: OCFC Thank you for your Thank you for your interest in interest in OceanFirst OceanFirst Financial Corp. Financial Corp.
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