Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (February 2014)
22 slides from Oceanfirst Financial's investor presentation, Feb 12, 2014
Slide 1: OceanFirst Financial Corp. Investor Presentation February/March 2014
Exhibit 99.1 OceanFirst Financial Corp. INVESTOR PRESENTATION FEBRUARY/MARCH 2014 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: 112 Years of Growth and Capital Management
112 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 Middlesex Community Bank serving the Central Jersey Shore - $2.2 billion in assets Mercer Monmouth and 23 branch offices Market Cap $300.4 million Philadelphia Core deposits – 87.5% of total deposits
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 43 43 Christopher D. Maher *President, Chief Operating Officer 26 1 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 32 21 Joseph R
Slide 6: Our Strategy
Our Strategy Positioned as the leading Community Bank in attractive Central Jersey Shore market – developing the franchise, growing revenue and creating additional value for shareholders Strategically focused on revenue growth in commercial lending, trust and asset management, and Bankcard services
Slide 7: Significant Primary Market Deposit Share
Significant Primary Market Deposit Share Competing Favorably Against Banking Behemoths # 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 Wells Fargo Ban
Slide 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition Non- Time Dec 2013 Interest Checking Interest MMDA & Savings Deposits Checking Non- Dec 2008 Interest Checking Interest Checking MMDA & Savings Time Deposits Interest Dec 1996 Checking MMDA & Savings Time Deposits 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition Owner-Occupied Consumer & Dec 2013 Investment CRE CRE C&I Residential R.E. Other Investment Owner- Consumer & Dec 2008 CRE Occupied C&I Other Residential R.E. CRE Dec 1996 Investment CRE Consumer & Other Residential R.E. 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 9
Slide 10: Highlights – Fourth Quarter 2013
Highlights – Fourth Quarter 2013 Consolidated two branches and restructured FHLB Advances improving operating margins into future periods Excluding strategic restructuring charges, core earnings per share of $0.30 resulting in a 9.5% ROE & 0.85% ROA Increased net interest margin to 3.38%, from 3.20%
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% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% (1) 2009 2010 2011 2012 2013 Residential Consumer Commercial Real Estate Commercial Data as of December 31. (1)Increase attributable to Superstorm Sandy. NASDAQ: O
Slide 12: Prudently Provisioning for Credit Costs
Prudently Provisioning for Credit Costs $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 12/31/09 12/31/10 12/31/11(1) 12/31/12(2) 12/31/13 Net Charge-Offs Provision for Loan Losses (1)Spike in charge-offs was due to a change in charge-off policy to recognize the charge-off when the loan is deemed uncollectible ra
Slide 13: Net Interest Margin
Net Interest Margin Increasing After Stabilizing Close to Historical Levels 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1996 1998 2000 2002 2004 2006 2008 2010 2012 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% $18.1M Targeted 0.70% Growth Areas 0.60% 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 2013 Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Trust 2011 Non-Interest Income excludes gain/loss from o
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% 0.40% 4.0% 2.0% 0.20% 0.0% 0.0% (1) 2009 2010 2011 2012 2013 Return on Equity Return on Assets (1) Excludes after-tax impact of $3.1 million in non-recurring charges related to strategic advance restru
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: 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 18: Thank You for Your Interest in OceanFirst Financial Corp.
THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. NASDAQ: OCFC 18
Slide 19: 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 20: Residential Portfolio Metrics
APPENDIX 2 Residential Portfolio Metrics Residential Real Estate Total Portfolio $782.2 million % of Total Loan Portfolio 49.8% Average size of mortgage loans $188,000 Interest-only loans $28.8 million - % of total 1-4 family loans 3.7% - Weighted average loan-to-value ratio (using original or most
Slide 21: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate (CRE) Total portfolio (1) $528.9 million % of Total Loan Portfolio 33.6% Average size of CRE loans $819,000 Largest CRE loan $15.8 million (Secured by local university dormitory housing) Current Pipeline $46.2 million Weighted A
Slide 22: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure Real Estate Investment by by Industry Classification Property Classification Miscellaneous, 15.0% Office, 31.5% Multi-Family, 2.8% Miscellaneous, 6.1% Public Retail Store, 10.2% Administration, 6.7% Educational Serv
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