Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (November 2010)
24 slides from Oceanfirst Financial's investor presentation, Nov 2, 2010
Slide 1: OceanFirst Financial Corp. Investor Presentation November 2010
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino - Chairman, CEO Michael J. Fitzpatrick - Executive Vice President, CFO INVESTOR PRESENTATION NOVEMBER 2010 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 - $2.2 billion in Mercer !( assets and 23 branch offices (! (! Monmouth !( #!( Market Cap $224 million (as of (#! ## !( (!(!#!( October 28, 2010) Phi
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 Offering a full range of consumer and commercial banking products generating diversified income streams Guarding credit quality in ALL business cycles Transitioning the balance sheet with emph
Slide 7: Highlights – Third Quarter 2010
Highlights – Third Quarter 2010 Total revenue (i.e. net interest income and total other income) rd increased 12.3% compared to 3 Q’09 Diluted earnings per share increased to $0.29 compared to $0.27 nd for the 2 Q’10. Return on average stockholders’ equity was 10.7% for the quarter Core deposits (i.e
Slide 8: Increasing Deposit Market Share
Increasing Deposit Market 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 (Canada)
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 Controlled in a Diversified Portfolio
NPL’s Controlled in a Diversified Portfolio 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Commercial Commercial Consumer One-to-Four Total NPL Real Estate and Family Construction Non-performing loan (“NPL”). Data as of September 30, 2010. NASDAQ: OCFC 11
Slide 12: Prudent Credit Risk Management
Prudent Credit Risk Management Building Loan Loss Reserves $8,000 $6,000 $4,000 $2,000 $0 12/31/08 12/31/09 9/30/10 Year-Ended Nine Months Net Charge-Offs Provision for Loan Losses NASDAQ: OCFC 12
Slide 13: Prudent Capital Management
Prudent Capital Management Increasing Tangible Common Equity 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 12/31/08 12/31/09 9/30/10 NASDAQ: OCFC 13
Slide 14: Well Below Residential Benchmarks
Well Below Residential Benchmarks Quarterly Delinquency Trends 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 14
Slide 15: Attractive, Expanding Net Interest Margin
Attractive, Expanding Net Interest Margin 3.9% 3.7% 3.5% 3.3% 3.1% 2.9% 2.7% 2.5% 2008 2009 Nine Months Ended 9/30/10 NASDAQ: OCFC 15
Slide 16: Generating Significant Non-Interest Income
Generating Significant Non-Interest Income 0.9% 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% 2008 2009 Nine Months Ended 9/30/10 (Annualized) NASDAQ: OCFC 16
Slide 17: 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 Nine Months Ended 9/30/10 (Annualized) NASDAQ: OCFC 17
Slide 18: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers¹ Valuation Price / Tang. Book Value 112% 129% Price / LQA EPS 10.3x 12.9x Price / Estimated EPS 10.6x 11.4x Cash Dividend Yield 4.0% 3.1% ¹ Peers include: ALNC, CNBC, DCOM, FFIC, HUVL, LBAI, PBNY, PGC, SMTB, STBC, STL, SUBK, and TRST Note: Financial data for t
Slide 19: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Experienced management team with substantial insider ownership Increasing market share Conservative credit culture and profile Solid financial performance Strong balance sheet and capital base Attractive current valuation NASDAQ:
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 $187,000 Interest-only loans - Amount $90.9 million - Percent of total one-to-four family loans 9.3% Stated income loans - Amount $65.2 million - Percent of total one-to-four family loans 6.7% Weighted a
Slide 23: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate Average size of commercial real estate loans $689,000 Largest commercial real estate loan $13.7 million Commercial Loans Average size of commercial loan $159,000 Largest commercial loan $16.0 million As of September 30, 2010. NA
Slide 24: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Portfolio by Industry Concentration Real Estate Investment by Property Concentration Miscellaneous, 15.2% Miscellaneous, 12.1% Real Estate Investment, 31.7% Office, 27.4% Residential Manufacturing, 5.4% Development, 8.7% Com
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