Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (February 2012)
23 slides from Oceanfirst Financial's investor presentation, Feb 7, 2012
Slide 1: OceanFirst Financial Corp. Investor Presentation
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino – Chairman, CEO Vito R. Nardelli – President, COO Michael J. Fitzpatrick – Executive Vice President, CFO INVESTOR PRESENTATION FEBRUARY 8, 2012 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: Our 109-Year History
Our 109-Year History 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 demutualized and issued stock for the first time in 1996 and since then has succeeded as a public
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Community Bank serving the Middlesex Central Jersey Shore - $2.3 billion Mercer !( in assets and 24 branch offices (! (! Monmouth #!( Market Cap $269 million (as of !( (#! ## !( (!(!#!( February 3, 2
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 40 40 Vito R. Nardelli President, Chief Operating Officer 37 7 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 30 19 Insider owner
Slide 6: Our Strategy
Our Strategy Positioned as the leading Community Bank alternative 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 qua
Slide 7: Highlights – Fourth Quarter and Year 2011
Highlights – Fourth Quarter and Year 2011 Solid core operating earnings of $0.30 per share for the quarter and $1.14 for the year Net income of $20.7 million and total revenue of $92.6 million for 2011 both set a record for the Company During the fourth quarter of 2011, the Company changed its charg
Slide 8: Increasing Primary Market Deposit Share
Increasing Primary Market Deposit Share Deposit market share increased from 10.02% to 10.74% June 30, 2011 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 14 2,696,041 20.61 2 TD Bank National Association (Canada) 21 1,863,624 14.25 3
Slide 9: Deposit Composition Transition
Deposit Composition Transition Non-Interest Bearing Non-Interest Interest Bearing Demand Bearing Jumbo Time Demand Deposits, Jumbo Time Demand Deposits(1), 0.7% Deposits, Deposits(1), Deposits, 10.4% 8.4% 4.7% 7.6% MMDA & Savings, 25.6% Retail Time Deposits, 29.1% Interest Bearing Non-Interest Deman
Slide 10: Loan Composition Transition
Loan Composition Transition Consumer & Commercial Consumer & Other(1), & Industrial, Other(1), 0.4% 5.7% Commercial 10.6% Commercial & Industrial, R.E., 4.3% 2.8% Commercial R.E., 17.8% Consumer & Residential Other(1), Residential R.E., 89.6% 12.1% R.E., 68.8% Commercial & Industrial, December 31, 1
Slide 11: NPL's in a Diversified Portfolio
NPL’s in a Diversified Portfolio Exposure Concentrated in Lower Risk One-to-Four Family Increase due to one large loan 3.50% relationship totaling $6.4 million recently 3.00% converted to a TDR. 2.50% 2.00% NPL’s originated by alternative 1.50% Bank delivery channels. 1.00% 0.50% 0.00% 2008 2009 201
Slide 12: Prudently Provisioning for Growing Credit Costs
Prudently Provisioning for Growing 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) Charge-Offs - One-to-Four Family Charge-Offs - Consumer Charge-Offs - Commercial Real Estate Charge-Offs - Commercial Provision for Loan Lo
Slide 13: Net Interest Margin
Net Interest Margin Stabilizing, 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 2011 NASDAQ: OCFC 13
Slide 14: 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 2011 Fees and Service Charges Gain on Sale of Loans Merchant Services Trust Investment Services BOLI Other 2011 Non-Interest Income excludes loss from other real estate operations and other-than-tem
Slide 15: Earning Attractive Return on Equity
Earning Attractive Return on Equity 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2008 2009 (1) 2010 2011 (1) Secondary capital raise restrained ROE NASDAQ: OCFC 15
Slide 16: Challenge Today is to Grow Revenue, Build Shareholder Value
Challenge Today is to Grow Revenue Build Shareholder Value Business Plan targets growth within existing footprint – increasing market share Thirteen de novo branches since 2000 have performed well – still present room for additional growth Non-interest income streams have been diversified, more impo
Slide 17: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 123% 136% Price / LQA EPS 11.9x 13.5x Price / Estimated EPS 11.8x 13.8x Cash Dividend Yield 3.36% 3.00% (1) Peers include: ALNC, CNBC, DCOM, FFIC, FLIC, HVB, KRNY, LBAI, PBNY, PGC, RCKB, STL, SUBK, and TRST Note: Financial
Slide 18: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Experienced management team with substantial insider ownership – aligned with shareholders Increasing deposit market share Conservative credit culture and profile Solid financial performance – developing shareholder value Strong b
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 18 4 1 % of OceanFirst Deposits 84.9 11.8 3.3 Market Rank 4 16 33 Market Share (%) 10.7 1.1 0.3 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 Loans Average size of mortgage loans $183,000 Interest-only loans - Amount $54.9 million - Percent of total one-to-four family loans 6.2% - Weighted average loan-to-value ratio (using original appraisal) 66% Stated income loans - Amount $54
Slide 22: Commercial Portfolio Metrics (Cont'd)
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate Average size of commercial real estate loans $757,000 Largest commercial real estate loan $18.1 million (Secured by local university dormitory housing) Commercial Loans Average size of commercial loan $185,000 Largest commercial
Slide 23: 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, 7.2% Miscellaneous, 11.3% Public Administration, 5.1% Real Estate Investment, 34.7% One-to-Four Family, Educational Services,
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