Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Q3 2020 Earnings Presentation
17 slides from Oceanfirst Financial's earnings presentation, Oct 30, 2020
Slide 1: Supplement to Q3 2020 Financial Results
. . . OceanFirst Financial Corp. Supplement to Q3 2020 Financial Results October 29, 2020 . . .
Slide 2: Forward Looking Statements
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Forward Looking Statements In addition to historical information, this presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and desc
Slide 3: Credit Metrics – At A Glance
SUPPLEMENT TO Q3 2020 EARNINGS PRESS RELEASE . . . Credit Metrics – At A Glance Current Forbearances (October 23, 2020) Commercial (Full 1) $88M 1.1% of portfolio Consumer $122M 1.5% of portfolio Total $210M 2.6% of portfolio The forbearance portfolios are expected to be negligible as of December 31
Slide 4: Commercial Forbearance Portfolio
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Forbearance Portfolio $894M in forbearances cured from peak of $1.1B Commercial forbearances at October 23, 2020 total $206M of which only $88M is full payment forbearance Commercial full payment forbearance projected to reduce to $20M by
Slide 5: Commercial Loans Currently in Forbearance
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Loans Currently in Forbearance Category Current Forbearance Type $206M $206M Full Interest Interest Only (in millions) Forbearance Only – Prefunded* Total commercial CRE: Investor Owned $53 $68 $4 forbearances have CRE: Owner Occupied $15
Slide 6: Commercial Loans Currently in Full Forbearance
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Loans Currently in Full Forbearance $88M $88M $88M $88M . . . 6 OCTOBER | 2020 Forbearance data as of October 23, 2020
Slide 7: Commercial Loans in Full Forbearance – Loan to Value (CRE)
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Loans in Full Forbearance – Loan to Value (CRE) *WA LTV: 56.1% . . . *WA DSCR: 1.43X Forbearance data as of October 23, 2020 OCTOBER | 2020 *WA LTV and WA DSCR as of most recent financial review 7
Slide 8: Commercial Loans Currently in Interest Only Forbearance
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Loans Currently in Interest Only Forbearance $118M $118M $118M $118M . . . OCTOBER | 2020 Forbearance data as of October 23, 2020 8
Slide 9: Commercial Loan Interest Only Forbearance – Loan to Value (CRE)
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Commercial Loan Interest Only Forbearance – Loan to Value (CRE) *WA LTV: 48.3% *WA DSCR: 1.80X . . . Forbearance Data as of October 23, 2020 OCTOBER | 2020 *WA LTV and WA DSCR as of most recent financial review 9
Slide 10: Consumer Forbearance Portfolio
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Consumer Forbearance Portfolio 1st Forbearance Peak $329M 2nd Forbearance Peak $187M Consumer forbearances (1st and 2 nd ) at October 26, 2020 total $122M, down 63% from peak of $329M . . . The second 90-day forbearance period began in early June OCT
Slide 11: Consumer Loan Forbearance Profile
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Consumer Loan Forbearance Profile Consumer forbearances peaked at $329M on June 13, 2020 Consumer Portfolio 90 Day Forbearance 180 Day Forbearance Portfolio Portfolio Total Outstanding Balance: $2.9B Total Outstanding Balance: $9M Total Outstanding B
Slide 12: Consumer Loan Forbearance Credit Metrics
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Consumer Loan Forbearance Credit Metrics Each forbearance period is 90 days, or a total of up to 180 days 90 90 Day Initial Initial Forbearance 180 180 Day . . . OCTOBER | 2020 Continuing Forbearance 12 Forbearance data as of October 26, 2020
Slide 13: Consumer Loan Forbearance Credit Metrics
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Consumer Loan Forbearance Credit Metrics Total Portfolio Forbearance Portfolio LTV <= 80% LTV > 80% LTV <= 80% LTV > 80% $2.7B (92%) $217M (8%) $109M (89%) $13M (11%) Only $3 million of loans exhibit an LTV > 80% and a current FICO < 650; FICO < 650
Slide 14: Consumer Loan Forbearance by County
SUPPLEMENT TO Q3 2020 EARNINGS .PRESS . . RELEASE Consumer Loan Forbearance by County $2.1B Sharply increasing real estate values should protect against credit losses Annual County Median Price Increase * Monmouth 14% Ocean 12% Atlantic 10% Cape May 20% . . . OCTOBER | 2020 Forbearance data as of Oc
Slide 15: SBA Paycheck Protection Program Update
SUPPLEMENT TO Q3 2020 EARNINGS PRESS RELEASE . . . SBA Paycheck Protection Program Update Total PPP Portfolio: $480.6 million Held for Sale: $298.1 million Retained PPP Portfolio: $182.5 million Submitted In Underwriting to SBA 8% (Pending Decision) 45% Applications to be Reviewed Retained by Bank 2
Slide 16: Loan Portfolio Activity
SUPPLEMENT TO Q3 2020 EARNINGS PRESS RELEASE . . . Loan Portfolio Activity 418 57 8,400 371 8,390 ($'millions) June 30, 2020 Loan Originations Loan Sales Payoffs / Paydowns September 30, 2020 . . . OCTOBER | 2020 16 Loan balances include loans held for sale.
Slide 17: Q3-20 NIM Contraction
SUPPLEMENT TO Q3 2020 EARNINGS PRESS RELEASE . . . Q3-20 NIM Contraction 3.24% 0.13% 0.06% 0.06% 0.02% 2.97% (%) Q2-20 NIM Excess balance sheet Lower rate Purchase accounting Prepayment fee Q3-20 NIM liquidity environment impact impact Headwinds Tailwinds • The sale of PPP loans will increase short-