Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Shareholder Meeting (May 2008)
12 slides from Oceanfirst Financial's shareholder meeting presentation, May 12, 2008
Slide 1: 2008 Annual Meeting of Shareholders
OceanFirst Financial Corp. MAY 9, 2008 2008 ANNUAL MEETING OF SHAREHOLDERS Exhibit 99.1
Slide 2: Forward-looking statements
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”, “anticipate”, “esti
Slide 3: How OceanFirst Bank Responded to the Subprime Issue
How OceanFirst Bank How OceanFirst Bank Responded to Responded to the Subprime Issue the Subprime Issue Vito R. Nardelli, Executive Vice President Vito R. Nardelli, Executive Vice President Chief Operating Officer, OceanFirst Bank Chief Operating Officer, OceanFirst Bank
Slide 4: OceanFirst Bank's Response: Discovery, Actions Taken, Moving On
Discovery Actions Taken Moving On OceanFirst Bank’s Response OceanFirst Bank’s Response
Slide 5: Columbia Home Loans (CHL)
CHL was acquired in 2000 Managed by its own team of officers Originated prime, subprime and Alt-A loans for sale to investors In early 2006, CHL increased its production of subprime loans – $480.2 million through June 30, 2007 Columbia Home Loans (CHL) Columbia Home Loans (CHL)
Slide 6: Discovery
February 2007 Failure to timely report to Bank Management significant increase in early payment default repurchase requests was discovered Senior Bank leadership deployed to CHL to determine the extent of the exposure to repurchase requests and the potential financial exposure to the Company March 2
Slide 7: Actions Taken
At the direction of the Board, Executive Management formulated a plan of action Bank Executives: Assumed operating responsibility of CHL Began a preliminary investigation to determine what caused the concealment of information Preserved and protected all records for any future investigation All subp
Slide 8: Actions Taken (Continued)
Releases were negotiated by the Bank with most investors to mitigate loss exposure 2Q’07 – The Bank sold as many of the remaining CHL subprime loans as possible Reserves for Repurchases were established for $13.6 Million through mid-year 2007 The Reserves have proved to be more than adequate Reserve
Slide 9: Moving On
CHL has been shuttered The rate of repurchase requests has dramatically decreased 93.1% of the risk exposure from CHL subprime production has been reduced A forensic accounting firm was engaged by the Board and found “ no specific patterns of misconduct ” There is a substantial reduction in risk wit
Slide 10: Where We Stand
Total Provision for Repurchased Loans $12.9 Million Loss on Sale and Market Write-down on Loans – 2007 $10.7 Million Total of Loan Related Losses $23.6 Million Residual Reserve for Repurchased Loans at March 31, 2008 $ 1.7 Million Repurchase Requests Outstanding at March 31, 2008 $ -0- Where We Stan
Slide 11: The Reserve has Performed as Expected
The Reserve has Performed as Expected The Reserve has Performed as Expected $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 12/31/2006 3/31/2007 5/15/2007 6/30/2007 9/30/2007 12/31/2007 3/31/2008 Repurchase Claims Pending Reserve for Pote
Slide 12: Summary
OceanFirst Bank Identified the issue at CHL Decisively took remedial action Returned to our Community Bank model Summary Summary
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