Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Keefe, Bruyette & Woods Community Bank Investor Conference 2013
24 slides from Oceanfirst Financial's conference presentation, Jul 29, 2013
Slide 1: OceanFirst Financial Corp. KBW Community Bank Investor Conference
Exhibit 99.1 OceanFirst Financial Corp. KEEFE, BRUYETTE & WOODS COMMUNITY BANK INVESTOR CONFERENCE JULY 30, 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 for
Slide 3: 111 Years of Growth and Capital Management
111 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 years generate
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 Mercer Monmouth and 25 branch offices Market Cap $308 million (as of July 24, 2013) Philadelphia Core deposit funded
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 42 42 Christopher D. Maher President, Chief Operating Officer 25 - Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 31 20 Joseph R.
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: 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 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition Non- June 2013 Interest Checking Time Interest MMDA & Savings Deposits Checking Non- Interest Checking Interest MMDA & Savings Time Deposits Dec 2007 Checking Interest Dec 1996 Checking MMDA & Savings Time Deposits 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition June 2013 Consumer & Residential R.E. CRE C&I Other Consumer & Dec 2007 CRE C&I Other Residential R.E. Dec 1996 CRE Consumer & Other Residential R.E. 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 9
Slide 10: Highlights – Second Quarter 2013
Highlights – Second Quarter 2013 Earnings per share of $0.29 – ROE of 9.1% Net interest margin stabilized, growing to 3.21%, from 3.16% Grew commercial loan portfolio and increased the commercial loan pipeline by $19.9 million, or 69% Credit quality stabilizing with NPL’s decreasing $1.5 million and
Slide 11: Stabilized NPL's in a Diversified Portfolio
Stabilized NPL’s in a Diversified Portfolio Exposure Primarily in Lower Risk Residential 3.50% $3.7M Sandy Impact(A) 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 2010 2011 2012 6/30/2013 Residential Consumer Commercial Real Estate and Construction Commercial Non-performing loan (“NPL”). Data as of
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for Credit Costs $10 $1.8M $9 Sandy Impact(A) $8 $7 $6 $5 $4 $3 $2 $1 $0 12/31/09 12/31/10 12/31/11(1) 12/31/12 6/30/13 (Annualized) Recoveries Residential & Consumer C/O's Commercial C/O's Provision for Loan Losses (1) Increase in charge-offs was primarily due to a change in
Slide 13: Net Interest Margin
Net Interest Margin Stabilizing After Two-Year Decline 3.90% 3.80% 3.70% 3.60% 3.50% 3.40% 3.30% 3.20% 3.10% 3.00% 2.90% 2.80% 2009 2010 2011 2012 2013 NASDAQ: OCFC 13
Slide 14: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.90% $18.0M 0.80% Targeted 0.70% Growth Areas 0.60% 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 6/30/13 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Trust Non-Interest Income excludes gain/
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 6/30/13 (Annualized) Return on Equity Return on Assets NASDAQ: OCFC 15
Slide 16: 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 Fourteen de novo branches since 2000 have performed well – still present opportunity for additional growth Expanding presence in Monmouth County with the Red Bank Financial Solutions Ce
Slide 17: Peer Valuation Metrics
Peer Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 142% 148% Price / LQA EPS 15.1x 16.4x Price / Estimated EPS 15.8x 16.7x Cash Dividend Yield 2.7% 2.6% (1) Peers include: DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PBNY, PGC, RCKB, SNBC, SUBK, UVSP and WSFS Note:Financial data as of the
Slide 18: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Crisis tested management team Sandy response and experience Substantial insider ownership – aligned with shareholders Succession planning refreshed Attractive deposit mix and market share Conservative credit culture and profile So
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: 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 21: Residential Portfolio Metrics
APPENDIX 2 Residential Portfolio Metrics One-to-Four Family (1-4) Average size of mortgage loans $186,000 Interest-only loans - Amount $35.3 million - % of total 1-4 family loans 4.4% - Weighted average loan-to-value ratio (using original or most recent appraisal) 61% Stated income loans - Amount $4
Slide 22: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate (CRE) (1) Total portfolio $477.6 million Average size of CRE loans $762,000 Largest CRE loan $15.9 million (Secured by local university dormitory housing) Current Pipeline $42.5 million Weighted Average Yield 4.50% Weighted Aver
Slide 23: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure by Industry Concentration Real Estate Investment by Property Concentration Miscellaneous, 6.6% Public Miscellaneous, 13.7% Administration, 6.4% Educational Services, Real Estate Investment, 31.8% Multi-Family, 3.4%
Slide 24: Impact of Superstorm Sandy
APPENDIX 3 Impact of Superstorm Sandy Commercial loans as of June 30, 2013: No adverse impact on portfolio quality. Residential loans as of June 30, 2013: Borrowers impacted by the storm 124 Principal Balance $30.1 million Average Loan Size $243,000 Loan Status: Borrowers Balance (000’s) Loans repai
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