Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Sandler O'Neill + Partners East Coast Financial Services Conference 2012
24 slides from Oceanfirst Financial's conference presentation, Nov 9, 2012
Slide 1: OceanFirst Financial Corp.
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino – Chairman, CEO Michael J. Fitzpatrick – Executive Vice President, CFO SANDLER O’NEILL + PARTNERS, L.P. EAST COAST FINANCIAL SERVICES CONFERENCE NOVEMBER 15, 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: 110 Years of Growth and Capital Management
110 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. OceanFirst issued stock for the first time in 1996 and over the ensuing ten years gene
Slide 4: Corporate Profile
Corporate Profile Community Bank serving the Central Jersey Shore - $2.3 billion in assets and 24 branch offices Market Cap $238.6 million (as of November 7, 2012) Core deposit funded – 86.5% of total deposits Locally originated loan portfolio with no brokered loans Residential and commercial mortga
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 41 41 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 31 20 Executive search initiated in August for the recently vacated position
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 Offering a full range of consumer and commercial banking products generating diversified income streams Guarding credit quality in ALL
Slide 7: Highlights – Third Quarter 2012
Highlights – Third Quarter 2012 Solid core operating earnings of $0.31 per share, a 10.7% increase over the prior year quarter (excludes non-recurring severance expense) Strong capital position – tangible common equity of 9.5% of assets Return on average stockholders’ equity was 9.1% Tangible book v
Slide 8: Substantial Primary Market Deposit Share
Substantial Primary Market Deposit Share June 30, 2012 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 14 2,610,613 18.65 2 Wells Fargo Bank NA (CA) 26 2,360,712 16.87 3 TD Bank, National Association (Canada) 21 2,149,131 15.36 4 Ocea
Slide 9: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition December 31, 1996 December 31, 2006 September 30, 2012 (1) Jumbo CDs have a balance of $100,000 or greater. NASDAQ: OCFC 9
Slide 10: Strategic Loan Composition Transition
Strategic Loan Composition Transition December 31, 1996 December 31, 2006 September 30, 2012 (1) Consumer and other loans primarily consist of home equity lines and loans. Note: See Appendix 2 for specific portfolio metrics and commercial portfolio segmentation. NASDAQ: OCFC 10
Slide 11: Decreasing NPL's in a Diversified Portfolio
Decreasing NPL’s in a Diversified Portfolio Exposure Concentrated in Lower Risk One-to-Four Family Residential Primary - Bank delivery channel Consumer Commercial Real Estate and Construction Commercial Non-performing loan (“NPL”). Data as of December 31, unless otherwise noted. NASDAQ: OCFC 11
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for 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) 9/30/12(1) Total Recoveries Charge-Offs - One-to-Four Family Charge-Offs - Consumer Charge-Offs - Commercial Real Estate Charge-Offs - Commercial P
Slide 13: What About Sandy?
What About Sandy? Effective Disaster Contingency Plan minimized office closures 32% operating the day after the storm 100% operational within 7 days Leadership presence in market – meeting customer needs ASAP OceanFirst Foundation Relief and Recovery Program Pledged $500,000 in grants through local
Slide 14: Net Interest Margin
Net Interest Margin Remaining 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 2012 NASDAQ: OCFC 14
Slide 15: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 2011 Non-Interest Income excludes loss from other real estate operations and gain on sale of equity securities. NASDAQ: OCFC 15
Slide 16: Maintaining Attractive Return on Equity
Maintaining Attractive Return on Equity (1) Secondary capital raise restrained ROE NASDAQ: OCFC 16
Slide 17: Challenge Today is to Grow Revenue, Build Shareholder Value
Challenge Today is to Grow Revenue Build Shareholder Value Target growth within existing footprint – building market share Thirteen de novo branches since 2000 have performed well – still present opportunity for additional growth Expanding presence in Monmouth County with a full service Financial So
Slide 18: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 109% 118% Price / LQA EPS 11.8x 12.8x Price / Estimated EPS 11.4x 12.5x Cash Dividend Yield 3.6% 3.3% (1) Peers include: DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PBNY, PGC, RCKB, SNBC, STL, SUBK, UVSP and WSFS Note: Financial da
Slide 19: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Experienced crisis tested management team with substantial insider ownership – interests aligned with shareholders Attractive deposit mix and market share Conservative credit culture and profile Solid financial performance – devel
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 19 4 1 % of OceanFirst Deposits 85.7 11.1 3.2 Market Rank 4 18 34 Market Share (%) 10.6 1.0 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 (1-4) Average size of mortgage loans $184,000 Interest-only loans - Amount $41.4 million - % of total 1-4 family loans 4.9% - Weighted average loan-to-value ratio (using original appraisal) 64% Stated income loans - Amount $46.8 million - %
Slide 23: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate(CRE) Average size of CRE loans $765,000 Largest CRE loan $17.8 million (Secured by local university dormitory housing) Total exposure to CRE in flood hazard area $91.5 million - % Total CRE Portfolio 19.2% - Weighted average loa
Slide 24: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure by Industry Concentration Real Estate Investment by Property Concentration As of September 30, 2012. NASDAQ: OCFC 24