Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Rodman & Renshaw Annual Global Investor Conference 2010
24 slides from Oceanfirst Financial's conference presentation, Sep 3, 2010
Slide 1: OceanFirst Financial Corp.
Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino - Chairman, CEO Michael J. Fitzpatrick - Executive Vice President, CFO RODMAN & RENSHAW ANNUAL GLOBAL INVESTOR CONFERENCE SEPTEMBER 13, 2010 NASDAQ: OCFC 1
Slide 2: Forward Looking Statements
OceanFirst Financial Corp. 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 w
Slide 3: Our 108-Year History
Our 108-Year History Founded at the Jersey Shore in 1902, OceanFirst converts to public company from a mutual structure on July 2, 1996 with an issuance of 27.2 million¹ shares to the Bank's eligible depositors, our Employee Stock Ownership Plan, and the OceanFirst Foundation. Entered mortgage banki
Slide 4: Corporate Profile
Corporate Profile Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Community Bank serving the Middlesex Jersey Shore - $2.2 billion in Mercer !( assets and 23 branch offices (! (! Monmouth !( #!( Market Cap $213 million (as of (#! ## !( (!(!#!( August 31, 2010) Phil
Slide 5: Experienced Executive Management Team
Experienced Executive Management Team # of # of Years Years in Name Position at OCFC Banking Professional Experience John R. Garbarino has served as Chairman and Chief Executive Officer of OceanFirst Financial Corp. since 1995. He has served in various capacities for OceanFirst Bank since 1971 and h
Slide 6: Our Strategy
Our Strategy Positioned as the Community Bank of Choice in attractive Central Jersey Shore market Offering a full range of consumer and commercial banking products with diversified income streams Guarding credit quality in ALL business cycles Transitioning balance sheet with current emphasis on core
Slide 7: Highlights – Second Quarter 2010
Highlights – Second Quarter 2010 Diluted earnings per share increased to $.27 compared to $.26 in the prior year period Deposits increased $158.9 million of which $156.6 million was core deposit growth (defined as all deposits excluding time deposits) Loans receivable, net increased $27.3 million of
Slide 8: Deposit Market Share
Deposit Market Share June 30, 2009 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 13 2,375,136 18.71 2 Wells Fargo & Co. (CA) 28 2,099,640 16.54 3 Toronto-Dominion Bank (Canada) 20 1,760,300 13.87 4 Banco Santander S.A. (Spain) 25 1,
Slide 9: Deposit Composition Transition
Deposit Composition Transition December 31, 2005 June 30, 2010 Non-Interest Non-Interest Bearing Jumbo Time Jumbo Time Bearing Demand Deposits(1), Demand Deposits, Deposits(1), 8.1% Deposits, 8.9% 5.2% 8.9% Retail Time Deposits, 14.7% Retail Time Deposits, 27.7% Interest Bearing Demand MMDA & Deposi
Slide 10: Loan Composition Transition
Loan Composition Transition December 31, 2005 June 30, 2010 Consumer & Construction Consumer & Construction Other(1), R.E., 1.3% Other(1), R.E., 0.6% Commercial 8.6% 12.7% & Industrial, Residential Residential R.E., 56.8% 3.8% Commercial R.E., 69.8% & Industrial, 4.6% Commercial R.E., 16.5% Commerci
Slide 11: Overall Strength in a Diversified Portfolio
Overall Strength in a Diversified Portfolio Commercial Real Estate and One-to-Four Construction Commercial Consumer Family Total Loan Portfolio Balance $436,404 $77,876 $214,178 $957,208 $1,685,666 Non-Performing Loans $3,199 $979 $3,789 $21,246 $29,213 Percent of Portfolio 0.73% 1.26% 1.77% 2.22% 1
Slide 12: Prudent Credit Risk Management
Prudent Credit Risk Management Building Loan Loss Reserves 6000 5000 4000 3000 2000 1000 0 12/31/08 12/31/09 6/30/10 Year-Ended Six Months Net Charge-Offs Provision for Loan Losses NASDAQ: OCFC 12
Slide 13: Favorable Residential Past Due Comparisons
Favorable Residential Past Due Comparisons Quarterly Delinquency Trends 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 05 06 07 08 09 10 OCFC All Mortgage Loans MBA NJ Mortgage Loans MBA NJ Conventional (Prime) Mortgage Loans
Slide 14: Attractive, Expanding Net Interest Margin
Attractive, Expanding Net Interest Margin 3.9% 3.7% 3.5% 3.3% 3.1% 2.9% 2.7% 2.5% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. NASDAQ: OCFC 14
Slide 15: Growing Non-Interest Income
Growing Non-Interest Income 0.9% 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 Non-Interest Income/Average Assets (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. NASDAQ: OCFC 15
Slide 16: 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% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. NASDAQ: OCFC 16
Slide 17: Strong Tangible Common Equity
Strong Tangible Common Equity 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2006 2007 2008 2009 6/30/2010 At December 31 NASDAQ: OCFC 17
Slide 18: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers¹ Valuation Price / Tang. Book Value 109% 132% Price / LQA EPS 10.5x 13.3x Price / Estimated EPS 10.1x 13.5x ¹ Peers include: ALNC, CNBC, DCOM, FFIC, HUVL, LBAI, PBNY, PGC, SMTB, STBC, STL, SUBK, and TRST Note: Financial data for the period ended June 30, 2010;
Slide 19: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Experienced management team and insider ownership Consistent financial performance Conservative credit culture and profile Strong balance sheet and capital base Demonstrated financial management Attractive current valuation NASDAQ
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 % of OceanFirst Deposits 85.6 10.6 3.8 Market Rank 6 18 34 Market Share (%) 9.3 0.9 0.3 Population 578,728 649,429 794,605 Projected 2010-2015 4.0 2.0 1.8 1.2 3.8 Population Growth (%) Median Household Income ($) 60,936 82,9
Slide 22: Loan Portfolio Metrics
APPENDIX 2 Loan Portfolio Metrics One-to-Four Family Loans Average size of mortgage loans $186,000 Interest-only loans - Amount $97.2 million - Percent of total one-to-four family loans 10.0% Stated income loans - Amount $66.6 million - Percent of total one-to-four family loans 6.8% Weighted average
Slide 23: Loan Portfolio Metrics (Cont'd)
APPENDIX 2 Loan Portfolio Metrics (Cont’d) (Cont’d) Commercial Real Estate Average size of commercial real estate loans $684,000 Largest commercial real estate loan $13.8 million Commercial Loans Average size of commercial loan $167,000 Largest commercial loan $14.4 million As of June 30, 2010, unle
Slide 24: Commercial Portfolio Segmentation (Cont'd)
APPENDIX 2 (Cont’d) 2 APPENDIX Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Portfolio Real Estate Investment by by Industry Concentration Property Concentration Miscellaneous, 14.2% Miscellaneous, 14.8% Real Estate Investment, 32.0% Office, 28.2% Manufacturing, 5.5% Residential D
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