Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Sterne Agee Financial Institution Investor Conference February 2011
24 slides from Oceanfirst Financial's conference presentation, Feb 16, 2011
Slide 1: OceanFirst Financial Corp. - Sterne Agee Financial Institution Investor Conference
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino - Chairman, CEO Michael J. Fitzpatrick - Executive Vice President, CFO STERNE AGEE FINANCIAL INSTITUTION INVESTOR CONFERENCE FEBRUARY 2011 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 108-Year History
Our 108-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 Jersey shore. OceanFirst went public in 1996 and since then has been successful as a public company generating value for our sharehold
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Community Bank serving the Middlesex Jersey Shore - $2.3 billion in Mercer !( assets and 23 branch offices (! (! Monmouth !( !( ## # #!( Market Cap $259.0 million (as of (! (!(!#!( February 11, 2011)
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 39 39 Vito R. Nardelli President, Chief Operating Officer 36 6 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 29 18 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 - 2010
Highlights –2010 Record $20.4 million of net income for 2010 Total revenue (i.e., net interest income and total other income) of $92.4 million for 2010 also set a record for the Company, an increase of 14.0% over 2009 Diluted earnings per share year-over-year increased 14.3% to $1.12. Return on aver
Slide 8: Increasing Primary Market Deposit Share
Increasing Primary Market Deposit Share th th Moving from 6 to 4 in Last Year June 30, 2010 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 13 2,773,130 21.66 2 Wells Fargo & Co. (CA) 27 1,810,777 14.14 3 TD Bank National Association
Slide 9: Deposit Composition Transition
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, 8.1% 8.9% 4.7% 7.6% MMDA & Retail Time Savings, Deposits, 25.6% 27.7% Interest Non-Interest Bearing Bearin
Slide 10: Loan Composition Transition
Loan Composition Transition Consumer & Other(1), Commercial 5.7% Consumer & Construction & Industrial, Construction Other(1), R.E., 1.3% 0.4% R.E., 1.1% Commercial 8.6% Commercial & Industrial, Residential R.E., 3.2% 3.8% R.E., 69.8% Commercial R.E., 16.5% Consumer & Construction Other(1), R.E., 0.8
Slide 11: NPL's in a Diversified Portfolio
NPL’s in a Diversified Portfolio Stable Commercial Credit Quality 2.50% 2.25% 2.00% 1.75% 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% 2008 2009 2010 One-to-Four Family Consumer Commercial Real Estate and Construction Commercial Non-performing loan (“NPL”). Data as of December 31. NASDAQ: OCFC 11
Slide 12: Provision for Loan Losses Exceed Charge-Offs
Provision for Loan Losses Exceed Charge-Offs Building ALLL $10,000 $8,000 $6,000 $4,000 $2,000 $0 12/31/08 12/31/09 12/31/10 Year-Ended Net Charge-Offs Provision for Loan Losses NASDAQ: OCFC 12
Slide 13: Quarterly Residential Delinquency Trends
Quarterly Residential Delinquency Trends OceanFirst Well Below Benchmarks 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2008 2009 2010 OCFC All Mortgage Loans MBA NJ Mortgage Loans MBA NJ Conventional (Prime) Mortgage Loans NASDAQ: OCFC 13
Slide 14: Net Interest Margin
Net Interest Margin Expansion has Run its Course – for Now 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2008 2009 2010 NASDAQ: OCFC 14
Slide 15: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 70 bps. of 2010 Average Assets $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 2008 2009 2010 Deposit Fees Gain on Sale of Loans Merchant Services Investment Services Trust BOLI Other NASDAQ: OCFC 15
Slide 16: Delivering Double-Digit Return on Equity
Delivering Double-Digit Return on Equity 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2008 2009 2010 NASDAQ: OCFC 16
Slide 17: 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 Twelve new branches since 2000 have performed well – still present room for growth Non-interest income streams have been diversified – offering significant grow
Slide 18: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers¹ Valuation Price / Tang. Book Value 129% 152% Price / LQA EPS 10.8x 13.4x Price / Estimated EPS 12.4x 13.2x Cash Dividend Yield 3.49% 2.81% ¹ Peers include: ALNC, CNBC, DCOM, FFIC, HUVL, LBAI, PBNY, PGC, SMTB, STBC, STL, SUBK, and TRST Note: Financial data for
Slide 19: 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 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 18 4 1 % of OceanFirst Deposits 83.3 13.4 3.3 Market Rank 4 17 34 Market Share (%) 10.0 1.1 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 Loans Average size of mortgage loans $186,000 Interest-only loans - Amount $80.1 million - Percent of total one-to-four family loans 8.4% Stated income loans - Amount $62.7 million - Percent of total one-to-four family loans 6.6% Portfolio
Slide 23: Commercial Portfolio Metrics (Cont'd)
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate Average size of commercial real estate loans $711,000 Largest commercial real estate loan $13.6 million Commercial Loans Average size of commercial loan $277,000 Largest commercial loan $16.5 million As of December 31, 2010. NAS
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, 11.6% Miscellaneous, 10.9% Real Estate Educational Services, Investment, 32.6% 4.1% Residential Development, 8.0% Office, 31.
Oceanfirst Financial — Sterne Agee Financial Institution Investor Conference February 2011 on 6ix