Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Keefe, Bruyette & Woods Community Bank Investor Conference 2011
23 slides from Oceanfirst Financial's conference presentation, Jul 29, 2011
Slide 1: OceanFirst Financial Corp. KBW Community Bank Investor Conference
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino - Chairman, CEO Michael J. Fitzpatrick - Executive Vice President, CFO KEEFE, BRUYETTE & WOODS COMMUNITY BANK INVESTOR CONFERENCE AUGUST 2, 2011 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: Our 109-Year History
Our 109-Year History 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 demutualized and issued stock for the first time in 1996 and since then has succeeded as a public
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Community Bank serving the Middlesex Central Jersey Shore - $2.2 billion Mercer !( in assets and 23 branch offices (! (! Monmouth #!( Market Cap $254 million (as of !( (#! ## !( (!(!#!( July 26, 2011
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 40 40 Vito R. Nardelli President, Chief Operating Officer 37 7 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 30 19 Insider owner
Slide 6: Our Strategy
Our Strategy Positioned as the leading Community Bank alternative 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 qua
Slide 7: Highlights – Second Quarter 2011
Highlights – Second Quarter 2011 Diluted earnings per share increased 3.7% to $0.28 Return on average stockholders’ equity was 9.9% The net interest margin expanded 7 bps to 3.67% Core deposits (i.e., all deposits excluding time deposits) now comprise 84.0% of total deposits Capital position strengt
Slide 8: Increasing Primary Market Deposit Share
Increasing Primary Market Deposit Share th th Moving from 6 to 4 in Last Year June 30, 2010 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 13 2,773,130 21.66 2 Wells Fargo & Co. (CA) 27 1,810,777 14.14 3 TD Bank National Association
Slide 9: Deposit Composition Transition
Deposit Composition Transition Non-Interest Bearing Non-Interest Interest Bearing Demand Bearing Jumbo Time Deposits, Demand Jumbo Time Demand Deposits(1), 0.7% Deposits, Deposits(1), Deposits, 8.1% 8.9% 4.7% 7.6% MMDA & Retail Time Savings, Deposits, 25.6% 27.7% Interest Bearing Non-Interest Demand
Slide 10: Loan Composition Transition
Loan Composition Transition Consumer & Commercial Consumer & Other(1), & Industrial, Other(1), 0.4% 5.7% Commercial 8.6% Commercial & Industrial, R.E., 4.3% 3.8% Commercial R.E., 17.8% Consumer & Residential Other(1), R.E., 89.6% Residential 12.1% R.E., 69.8% Commercial & Industrial, December 31, 19
Slide 11: NPL's in a Diversified Portfolio
NPL’s in a Diversified Portfolio Exposure Concentrated in Lower Risk One-to-Four Family 3.00% 2.50% 2.00% NPL’s 1.50% originated by alternative Bank delivery channels. 1.00% 0.50% 0.00% 2008 2009 2010 6/30/2011 Residential - Primary Bank delivery channel Consumer Commercial Real Estate and Construct
Slide 12: Provision for Loan Losses Exceed Charge-Offs
Provision for Loan Losses Exceed Charge-Offs Building ALLL $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 6/30/11 Charge-Offs - One-to-Four Family Charge-Offs - Consumer Charge-Offs - Commercial Real Estate Charge-Offs - Commercial Provision for Loan Los
Slide 13: Net Interest Margin
Net Interest Margin Off Cyclical High But Expanded in Q1 and Q2 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2008 2009 2010 2011 2011 NASDAQ: OCFC 13
Slide 14: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 1996 6/30/2011 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other Merchant Services Investment Services Trust 2011 Non-Interest Income excludes gain (loss) from other real estate oper
Slide 15: Delivering Double-Digit Return on Equity
Delivering Double-Digit Return on Equity 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2008 2009 (1) 2010 2011 (Annualized) (1) Secondary capital raise NASDAQ: OCFC 15
Slide 16: Challenge Today is to Grow Revenue Build Shareholder Value
Challenge Today is to Grow Revenue Build Shareholder Value Business Plan targets growth within existing footprint – increasing market share Twelve de novo branches since 2000 have performed well – still present room for additional growth Non-interest income streams have been diversified, more import
Slide 17: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 119% 150% Price / LQA EPS 12.0x 13.6x Price / Estimated EPS 11.0x 11.9x Cash Dividend Yield 3.56% 3.07% (1) Peers include: ALNC, CNBC, DCOM, FFIC, FLIC, HUVL, KRNY, LBAI, PBNY, PGC, RCKB, STBC, STL, SUBK, and TRST Note: Fi
Slide 18: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Experienced management team with substantial insider ownership – aligned with shareholders Increasing deposit market share Conservative credit culture and profile Solid financial performance – developing shareholder value Strong b
Slide 19: Thank You For Your Interest in OceanFirst Financial Corp.
THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. NASDAQ: OCFC 19
Slide 20: Market Demographics
APPENDIX 1 Market Demographics Ocean Monmouth Middlesex New Jersey National Number of Offices 18 4 1 % of OceanFirst Deposits 83.3 13.4 3.3 Market Rank 4 17 34 Market Share (%) 10.0 1.1 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 21: Residential Portfolio Metrics
APPENDIX 2 Residential Portfolio Metrics One-to-Four Family Loans Average size of mortgage loans $185,000 Interest-only loans - Amount $69.5 million - Percent of total one-to-four family loans 7.5% - Weighted average loan-to-value ratio (using original appraisal) 68% Stated income loans - Amount $57
Slide 22: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics (Cont’d) Commercial Real Estate Average size of commercial real estate loans $751,000 Largest commercial real estate loan $19.8 million (Secured by local university dormitory housing) Commercial Loans Average size of commercial loan $218,000 Largest commercial
Slide 23: Commercial Portfolio Segmentation
APPENDIX 2 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure by Industry Concentration Real Estate Investment by Property Concentration Miscellaneous, 8.4% Miscellaneous, 8.4% Public Real Estate One-to-Four Family, Administration, 4.6% Investment, 33.3% 5.8% Educational Servi
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