Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Sterne Agee Financial Institutions Investor Conference 2013
25 slides from Oceanfirst Financial's conference presentation, Feb 11, 2013
Slide 1: OceanFirst Financial Corp. – Sterne Agee Financial Institutions Investor Conference
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino – Chairman, CEO Michael J. Fitzpatrick – Executive Vice President, CFO STERNE AGEE FINANCIAL INSTITUTIONS INVESTOR CONFERENCE FEBRUARY 11-13, 2013 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 fo
Slide 3: 110 Years of Growth and Capital Management
110 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. OceanFirst issued stock for the first time in 1996 and over the ensuing ten years gene
Slide 4: Corporate Profile
Corporate Profile Community Bank serving the Central Jersey Shore - $2.3 billion in assets and 24 branch offices Market Cap $257.4 million (as of February 6, 2013) Core deposit funded – 86.8% of total deposits Locally originated loan portfolio with no brokered loans Residential and commercial mortga
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 41 41 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 31 20 Executive search initiated in August for the position of President/COO
Slide 6: Our Strategy
Our Strategy Positioned as the leading Community Bank in attractive Central Jersey Shore market – growing revenue and creating additional value for our shareholders Offering a full range of consumer and commercial banking products generating diversified income streams Guarding credit quality in ALL
Slide 7: Highlights – 2012
Highlights – 2012 Earnings per share was $1.21 (excluding the adverse impact of severance expense and superstorm Sandy), a 6.1% increase over the prior year. Reported earnings per share was $1.12 Return on average stockholders’ equity was 9.2% Tangible book value continues to grow, increasing 5.8% t
Slide 8: Substantial Primary Market Deposit Share
Substantial Primary Market Deposit Share June 30, 2012 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 14 2,610,613 18.65 2 Wells Fargo Bank NA (CA) 26 2,360,712 16.87 3 TD Bank, National Association (Canada) 21 2,149,131 15.36 4 Ocea
Slide 9: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition Non-Interest Bearing Non-Interest Interest Bearing Demand Bearing Jumbo Time Deposits, Demand Jumbo Time Demand Deposits(1), 0.7% Deposits, Deposits(1), Deposits, 7.7% 8.1% 4.7% 7.6% MMDA & Retail Time Savings, Deposits, 25.6% 27.7% Non-Interest Interest Jumb
Slide 10: Strategic Loan Composition Transition
Strategic Loan Composition Transition Consumer & Commercial Consumer & Other(1), & Industrial, Other(1), 0.4% 5.7% 12.6% Commercial Commercial R.E., 4.3% & Industrial, 3.2% Commercial R.E., 19.3% Consumer & Residential Residential Other(1), R.E., 64.9% R.E., 89.6% 12.8% Commercial & Industrial, Dece
Slide 11: Stabilized NPL's in a Diversified Portfolio
Stabilized NPL’s in a Diversified Portfolio Exposure Concentrated in Lower Risk One-to-Four Family 3.50% 3.00% 2.50% 2.00% NPL’s originated by 1.50% alternative Bank delivery channels. 1.00% 0.50% 0.00% 2008 2009 2010 2011 2012 Residential - Primary Bank delivery channel Consumer Commercial Real Est
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for Credit Costs $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 12/31/08 12/31/09 12/31/10 12/31/11(1) 12/31/12 Total Recoveries Charge-Offs - One-to-Four Family Charge-Offs - Consumer Charge-Offs - Commercial Real Estate Charge-Offs - Commercial Pro
Slide 13: Sandy in the Rearview Mirror
Sandy in the Rearview Mirror Effective Disaster Contingency Plan minimized office closures 32% operating the day after the storm 100% operational within 7 days Leadership presence in market – meeting customer needs ASAP OceanFirst Foundation Relief and Recovery Program Pledged $500,000 in grants thr
Slide 14: Net Interest Margin
Net Interest Margin Remaining Under Pressure in Low Interest Rate Environment 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2008 2009 2010 2011 2012 NASDAQ: OCFC 14
Slide 15: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 1996 2012 Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Trust 2011 Non-Interest Income excludes loss from other real estate operations and gain on sale o
Slide 16: Maintaining Attractive ROE's and ROA's
Maintaining Attractive ROE’s and ROA’s 14.0% 1.40% 1.20% 12.0% 1.00% 10.0% 0.80% 8.0% 0.60% 6.0% 0.40% 4.0% 0.20% 2.0% 0.0% 0.0% 2008 2009 (1) 2010 2011 2012 Return on Equity Return on Assets (1) Secondary capital raise restrained ROE 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 footprint – building market share Thirteen de novo branches since 2000 have performed well – still present opportunity for additional growth Expanding presence in Monmouth County with a full service Financial So
Slide 18: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 117% 129% Price / Estimated EPS 12.5x 13.2x Cash Dividend Yield 3.3% 3.1% (1) Peers include: DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PBNY, PGC, RCKB, SNBC, STL, SUBK, UVSP and WSFS Note: Financial data as of the most recent per
Slide 19: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Crisis tested management team Sandy response and experience Substantial insider ownership – aligned with shareholders Attractive deposit mix and market share Conservative credit culture and profile Solid financial performance – de
Slide 20: Thank You for Your Interest in OceanFirst Financial Corp.
THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. NASDAQ: OCFC 20
Slide 21: Market Demographics
APPENDIX 1 Market Demographics Ocean Monmouth Middlesex New Jersey National Number of Offices 19 4 1 % of OceanFirst Deposits 85.7 11.1 3.2 Market Rank 4 18 34 Market Share (%) 10.6 1.0 0.2 Population 578,728 649,429 794,605 Projected 2010-2015 4.0 2.0 1.8 1.2 3.8 Population Growth (%) Median Househ
Slide 22: Residential Portfolio Metrics
APPENDIX 2 Residential Portfolio Metrics One-to-Four Family(1-4) Average size of mortgage loans $183,000 Interest-only loans - Amount $36.5 million - % of total 1-4 family loans 4.4% - Weighted average loan-to-value ratio (using original or most recent appraisal) 63% Stated income loans - Amount $45
Slide 23: Commercial Portfolio Metrics (Cont'd)
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate (CRE) (1) Total portfolio $475.2 million Average size of CRE loans $769,000 Largest CRE loan $16.6 million (Secured by local university dormitory housing) Total exposure to CRE in flood hazard area $101.6 million - % Total CRE P
Slide 24: Commercial Portfolio Segmentation (Cont'd)
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure by Industry Concentration Real Estate Investment by Property Concentration Miscellaneous, 6.8% Miscellaneous, 8.7% Public Administration, 6.5% Multi-Family, 6.1% Real Estate Educational Services, Investment, 31.1% 4
Slide 25: Impact of Superstorm Sandy
APPENDIX 3 Impact of Superstorm Sandy Residential borrowers provided with initial two-monthpayment delay – 45-day secondary contact: Borrowers (as of February 7, 2013) 123 Principal Balance $29.3 million Average Loan Size $238,000 Weighted average loan-to-value ratio (using original or most recent a
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