Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (November 2013)
24 slides from Oceanfirst Financial's investor presentation, Nov 13, 2013
Slide 1: OceanFirst Financial Corp. Investor Presentation
Exhibit 99.1 OceanFirst Financial Corp. INVESTOR PRESENTATION NOVEMBER/DECEMBER 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. Demutualized in 1996 and over the ensuing 11 years generated value for shareholders, l
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Community Bank serving the Central Middlesex Jersey Shore - $2.3 billion in assets and Mercer 25 branch offices (! Monmouth Two branches ( ) to be consolidated into local offices in 4Q Philadelphia M
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 Strategically focused on revenue growth in commercial lending, trust and asset management, and Bankcard services Guarding credit qualit
Slide 7: Significant Primary Market Deposit Share
Significant Primary Market Deposit Share Competing Favorably Against Banking Behemoths June 30, 2013 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 TD Bank, National Association (Canada) 21 2,460,349 16.88 2 Hudson City Bancorp Inc. (NJ)(1) 14 2,415,792 16.57 3 W
Slide 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition NASDAQ: OCFC 9
Slide 10: Highlights – Third Quarter 2013
Highlights – Third Quarter 2013 Earnings per share of $0.29 – 9.2% ROE Net interest margin stabilized at 3.20%, from 3.21% in linked quarter Grew commercial loan portfolio by $18.5 million, 13.6% annualized Credit quality improving with NPL’s decreasing $4.3 million Strong capital position – tangibl
Slide 11: Stabilized NPL's in a Diversified Portfolio
Stabilized NPL’s in a Diversified Portfolio Exposure Primarily in Lower Risk Residential 3.50% 3.00% $2.7M Sandy Impact(1) 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 2010 2011 2012 9/30/2013 Residential Consumer Commercial Real Estate and ConstructionCommercial Data as of December 31, unless otherwise
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for Credit Costs $10 $1.8M $9 Sandy Provision(2) $8 $7 $6 $5 $4 $3 $2 $1 $0 12/31/09 12/31/10 12/31/11(1) 12/31/12 9/30/13 (Annualized) Recoveries Residential & Consumer C/O's Commercial C/O's Provision for Loan Losses (1)Spike in charge-offs was due to a change in charge-off
Slide 13: Net Interest Margin
Net Interest Margin Stabilizing at Historical Levels 2013 Quarterly Trend Historical Average Net Interest Margin (3.28%) NASDAQ: OCFC 13
Slide 14: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.90% 0.80% $18.3M Targeted 0.70% Growth Areas 0.60% 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 9/30/13 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Trust 2011 Non-Interest Income excludes
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 9/30/13 (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 Continuing Strategic Execution Initiated a restructure of $159 million in FHLB Advances in Q4, incurring a charge of $0.16 per share to improve Net Interest Margin and reduce sensitivit
Slide 17: Peer Valuation Metrics
Peer Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 147% 147% Price / LQA EPS 15.6x 16.4x Price / Estimated EPS 17.7x 17.2x Cash Dividend Yield 2.6% 2.6% (1) Peers include: DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PGC, RCKB, SNBC, SUBK, UVSP and WSFS Note:Financial data as of the most
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’ interests Succession planning refreshed – 2013 Attractive deposit mix and market share Conservative credit cult
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 20 5 1 % of OceanFirst Deposits 86.6 10.3 3.1 Market Rank 4 18 36 Market Share (%) 10.2 0.9 0.2 Population 577,000 635,000 816,000 Projected 2012-2017 1.6 1.0 2.1 1.2 3.5 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 $189,000 Interest-only loans $33.0 million - % of total 1-4 family loans 4.2% - Weighted average loan-to-value ratio (using original or most recent appraisal) 61% Stated income loans $40.4 million - % of
Slide 22: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate (CRE) (1) Total portfolio $497.5 million Average size of CRE loans $797,000 Largest CRE loan $16.0 million (Secured by local university dormitory housing) Current Pipeline $33.6 million Weighted Average Yield 3.93% Weighted Aver
Slide 23: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure Real Estate Investment by by Industry Classification Property Classification Diversified portfolio provides protection against industry- specific credit events. As of September 30, 2013. NASDAQ: OCFC 23
Slide 24: Impact of Superstorm Sandy
APPENDIX 3 Impact of Superstorm Sandy CONSERVATIVE CREDIT UNDERWRITING AND ACTIVE PORTFOLIO MANAGEMENT COMBINED TO PROTECT THE BALANCE SHEET FROM THE IMPACT OF A MEGA-STORM Commercial Loan Portfolio: No commercial credit issues All commercial borrowers have demonstrated an ability to meet obligation
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