Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (November 2007)
25 slides from Oceanfirst Financial's investor presentation, Nov 1, 2007
Slide 1: OceanFirst Financial Corp. Investor Presentation November 2007
NASDAQ: OCFC INVESTOR PRESENTATION NOVEMBER 2007 OceanFirst Financial Corp. OceanFirst Financial Corp. John R. Garbarino, Chairman, President & CEO John R. Garbarino, Chairman, President & CEO Michael J. Fitzpatrick, Executive Vice President & CFO Michael J. Fitzpatrick, Executive Vice President & C
Slide 2: Forward-looking statements
NASDAQ: OCFC This presentation contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “antic
Slide 3: OceanFirst Financial Today
NASDAQ: OCFC Holding Company for the 105 year old financial services firm serving the community banking needs of the attractive Central New Jersey Shore growth market between the major metropolitan areas of New York City and Philadelphia $1.9 Billion in Assets – 20 OceanFirst Bank branches within a
Slide 4: Attractive Market Area
NASDAQ: OCFC Attractive Market Area Attractive Market Area
Slide 5: Ocean County – Fastest Growing County in NJ
NASDAQ: OCFC 558,000 people in Ocean County in 2005 9.3% increase since 2000 Outpacing NJ (3.6% increase) Outpacing US (5.3% increase) $52,065 Ocean County median household income in 2005 12.1% increase since 2000 83% Home Ownership in Ocean County Outpacing NJ (65%) Outpacing US (66%) Source: US Ce
Slide 6: Ocean County Deposit Market Share
NASDAQ: OCFC Total # of Deposits Market Bank Branches (000) Share % Commerce 20 $1,753,891 14.9 Wachovia 28 $1,729,790 14.7 Hudson City Savings 12 $1,687,719 14.3 Sovereign 26 $1,445,889 12.3 OceanFirst 16 $1,184,539 10.1 Bank of America 28 $1,049,874 8.9 Source: FDIC – Data as of June 30, 2007 Ocea
Slide 7: Growth Opportunities in Market
NASDAQ: OCFC Growth Opportunities in Market Growth Opportunities in Market New Branches Committed Monmouth Freehold Wall Ocean Bayville Toms River Waretown Headquarters
Slide 8: Ten Years Delivering Shareholder Value
NASDAQ: OCFC Average Annual/Total Shareholder Return (1996 – 2006) 15.6% Note: Data as of 9/30/06 prior to adverse effects of CHL nonprime mortgage banking write-offs 25.8% $10,313,000 $1,376,000 Fee and Service Charge Income 10.2% 14.1% 6.0% ROE 13.2% .80 .27 Annual Dividend 11.9% $1.58 $.59 EPS CA
Slide 9: CHL – Nonprime Lending Meltdown
NASDAQ: OCFC - Exposure Covered $404.9 Million $ 10.7 Million Loss on Sale and Market Writedown on Nonprime Loans – 2007 $ 13.4 Million Total Provision for Repurchased Loans – 2006 and 2007 $ 2.8 Million Reserve for Repurchased Loans at September 30, 2007 $618,000 Repurchase Requests Outstanding at
Slide 10: Mortgage Banking Cyclicality – Ends Disastrously
NASDAQ: OCFC CHL Quarterly EPS Contribution -0.80 -0.70 -0.60 -0.50 -0.40 -0.30 -0.20 -0.10 0.00 0.10 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 2001 2002 2003 2004 2005 2006 2007 Mortgage Banking Cyclicality – Mortgage Banking Cyclicality – Ends Disastrously Ends Disastrously
Slide 11: Core Bank – Earnings Stabilized
NASDAQ: OCFC Quarterly EPS – Without CHL 0.41 0.37 0.39 0.41 0.40 0.38 0.36 0.38 0.25 0.39 0.36 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 1 2 3 4 1 2 3 4 1 2 3 2006 2007 (1) (1) Net of CHL $.06/share Goodwill write-off on Bank’s financial statements 2005 Core Bank – Core Bank – Earnings
Slide 12: 2007 Balance Sheet Has Contracted
NASDAQ: OCFC 0 500 1000 1500 2000 2500 Total Assets At December 31, unless otherwise indicated. 2007 Balance Sheet Has Contracted 2007 Balance Sheet Has Contracted
Slide 13: 2007 Deposit Runoff
NASDAQ: OCFC 0 200 400 600 800 1000 1200 1400 1600 Core Deposits CD's At December 31, unless otherwise indicated. Core deposits include all deposits other than certificates. 2007 Deposit Runoff 2007 Deposit Runoff
Slide 14: 2007 Loan Portfolio Mix
NASDAQ: OCFC At December 31 unless otherwise indicated. 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Commercial Mortgage and Consumer 2007 Loan Portfolio Mix 2007 Loan Portfolio Mix
Slide 15: In this Environment……Managing Carefully
NASDAQ: OCFC Recovering from CHL shutdown Enterprise-wide Risk Management matures Exercise discipline/restraint in growth initiatives Take what the market gives without forcing growth Issue Tier II Capital to support share repurchases In this Environment……Managing Carefully In this Environment……Mana
Slide 16: Current External Challenges
NASDAQ: OCFC Yield curve – economic uncertainty Aggressive CD pricing dominating consumer choice Margin pressure from depositor preference shift Credit market turmoil intensifying Tenuous credit quality – looming real estate recession??? Current External Challenges Current External Challenges
Slide 17: Three Year Business Plan Imperatives
NASDAQ: OCFC Focus on disciplined de novo branch and core account development to support the margin, drive asset/revenue growth Target commercial lending as the focus of portfolio growth, further improving the loan portfolio mix Grow non-interest income, a key driver of top-line revenue, through re-
Slide 18: Targets Need to Reset
NASDAQ: OCFC Commercial & Consumer Loan Mix 34% 38% Revenue Mix (percent of total revenue) Fee and Service Charge 17% 20% Balance Sheet transformation will drive goal of EPS growth Current 2010 Core Deposit Mix 64% 70% Targets Need to Reset Targets Need to Reset •
Slide 19: Core Deposit Funding
NASDAQ: OCFC 20 Branches within a tightly defined footprint provide significant presence, market share TD Banknorth/Commerce removes toughest retail competitor Disciplined de novo branching and core deposit generation Over 11 years, 12 branches were opened with an average core deposit mix of 70% Rec
Slide 20: Non-Interest Income Initiatives
NASDAQ: OCFC Largest reverse mortgage originator headquartered in NJ, one of a handful of select, nationwide FNMA seller/servicers Generating $1.2 million in fee income in 2007 and growing rapidly in fertile market Trust Department revenues continue to grow $1.3 million in 2007 $158 million assets u
Slide 21: Credit Risk Supported by Portfolio Composition
NASDAQ: OCFC Commercial Lending Diversified, low risk $364 million portfolio Commercial real estate - 87% $537,000 average C & I - 13% $127,000 average Only 7 large relationships, $7 to $12 million exposures Limited exposure to residential construction lending No large, speculative subdivisions Stro
Slide 22: Share Repurchase Plans – Capital Leveraged
NASDAQ: OCFC 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 0 5 10 15 20 25 Cumulative Repurchases Capital Ratio Capital ratios are as of December 31 unless otherwise indicated. Share repurchases are for the year ended December 31 unless otherwise indicated. Share Repurchase Plans – Share Repur
Slide 23: Repurchase Program Supporting EPS Growth
NASDAQ: OCFC Repurchased 17.0 million shares in total; 62% of original issue Current authority for repurchase of 489,000 shares Current program funded through the issuance of Tier II Capital $5.0 million of subordinated debt issued in 2005 $12.5 million of trust preferred securities issued during 20
Slide 24: Building Additional Shareholder Value
NASDAQ: OCFC In the long run, we hope you agree the following undoubtedly create value for the long term OCFC investor: Maturing Enterprise-wide Risk Management commitment rebuilds OceanFirst credibility to effectively manage risk Lower risk, streamlined business plan to deliver earnings growth in a
Slide 25: Thank you for your interest in OceanFirst Financial Corp.
NASDAQ: OCFC Thank you for your interest in OceanFirst Financial Corp. Thank you for your interest in OceanFirst Financial Corp.
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