Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Keefe, Bruyette & Woods Community Bank Investor Conference 2010
23 slides from Oceanfirst Financial's conference presentation, Jul 26, 2010
Slide 1: OceanFirst Financial Corp. - KBW Community Bank Investor Conference
NASDAQ: OCFC 1 OceanFirst Financial Corp. John R. Garbarino - Chairman, CEO Vito R. Nardelli - President, COO Michael J. Fitzpatrick - Executive Vice President, CFO KEEFE, BRUYETTE & WOODS COMMUNITY BANK INVESTOR CONFERENCE JULY 28, 2010 Exhibit 99.1 OceanFirst Financial Corp. John R. Garbarino - Ch
Slide 2: Forward Looking Statements
NASDAQ: OCFC 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 “believ
Slide 3: Our 108-Year History
NASDAQ: OCFC 3 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. As a healthy institution, ac
Slide 4: Corporate Profile
NASDAQ: OCFC 4 Community Bank serving the Jersey Shore - $2.2 billion in assets and 23 branch offices Core deposit funded – 80% of total deposits Locally originated loan portfolio with no brokered loans Residential and commercial mortgages Consumer equity loans and lines C&I loans and lines Note: Se
Slide 5: Insider ownership and management team
NASDAQ: OCFC 5 Insider ownership of 28.0% is substantial OceanFirst Bank ESOP 10.5% OceanFirst Foundation 7.4% Directors & Senior Executive Officers 10.1% As of the March 9, 2010 proxy record date. Name Position # of Years at OCFC # of Years in Banking Professional Experience John R. Garbarino Chair
Slide 6: Our Strategy
NASDAQ: OCFC 6 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 co
Slide 7: Deposit Market Share
NASDAQ: OCFC 7 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 20 1,760,300 13.87 4 Banco Santander S.A. 25 1,485,578 11.70 5 Bank of
Slide 8: Deposit Composition Transition
NASDAQ: OCFC 8 (1) Jumbo CDs have a balance of $100,000 or greater. December 31, 2005 June 30, 2010 Interest Bearing Demand Deposits, 48.6% Non-Interest Bearing Demand Deposits, 8.9% Jumbo Time Deposits(1), 5.2% Retail Time Deposits, 14.7% MMDA & Savings, 22.6% Interest Bearing Demand Deposits, 28.2
Slide 9: Loan Composition Transition
NASDAQ: OCFC 9 (1) Consumer and other loans primarily consist of home equity lines and loans. Note: See Appendix 2 for specific portfolio metrics and commercial portfolio segmentation. Commercial R.E., 25.3% Residential R.E., 56.8% Commercial & Industrial, 4.6% Construction R.E., 0.6% Consumer & Oth
Slide 10: Overall Strength in a Diversified Portfolio
NASDAQ: OCFC 10 Commercial Real Estate and Construction Commercial Consumer One-to-Four 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% 1.73% Percent of Total Loans
Slide 11: Prudent Credit Risk Management
NASDAQ: OCFC 11 Building Loan Loss Reserves 0 1000 2000 3000 4000 5000 6000 12/31/08 12/31/09 6/30/10 Year-Ended Six Months Prudent Credit Risk Management Prudent Credit Risk Management Net Charge-Offs Provision for Loan Losses
Slide 12: Favorable Residential Past Due Comparisons
NASDAQ: OCFC 12 Quarterly Delinquency Trends 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 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 Favorable Residential Past Due Comparisons Favorable Residential Past Due Comparisons OCFC All Mortgage Loans MBA N
Slide 13: Attractive, Expanding Net Interest Margin
NASDAQ: OCFC 13 (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. 2.5% 2.7% 2.9% 3.1% 3.3% 3.5% 3.7% 3.9% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 Attractive, Expanding Net Interest Margin Attractive, Expanding Net Interest Margin
Slide 14: Growing Non-Interest Income
NASDAQ: OCFC 14 (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 0.8% 0.9% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 Non-Interest Income/Average Assets Growing Non-Interest Income Growing Non-Interest Income
Slide 15: Double-Digit Returns on Equity
NASDAQ: OCFC 15 (1) 2007 adversely impacted by losses in the shuttering of Columbia Home Loans. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2006 2007 (1) 2008 2009 Six Months Ended 6/30/10 Double-Digit Returns on Equity Double-Digit Returns on Equity
Slide 16: Strong Tangible Common Equity
NASDAQ: OCFC 16 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2006 2007 2008 2009 6/30/2010 At December 31 Strong Tangible Common Equity Strong Tangible Common Equity
Slide 17: Attractive Valuation Metrics
NASDAQ: OCFC 17 OCFC Peers¹ Valuation Price / Tang. Book Value 112% 134% Price / LQA EPS 10.8x 16.0x Price / Estimated EPS 11.3x 13.3x 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; Source: Sand
Slide 18: Why OCFC…?
NASDAQ: OCFC 18 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 W
Slide 19: Thank You for Your Interest in OceanFirst Financial Corp.
NASDAQ: OCFC 19 THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP.
Slide 20: Market Demographics
NASDAQ: OCFC 20 APPENDIX 1 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 575,822 646,088 795,633 Projected 2009-2014 Population Growth (%) 4.9 1.8 2.2 1.7 4.6 Median Household Income ($) 60,787 83,164 7
Slide 21: Loan Portfolio Metrics
NASDAQ: OCFC 21 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 loan-to-value rat
Slide 22: Loan Portfolio Metrics (Cont'd)
NASDAQ: OCFC 22 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, unless otherwise noted. APPENDIX 2 (Cont
Slide 23: Commercial Portfolio Segmentation
NASDAQ: OCFC 23 Construction, 7.3% Retail Trade, 4.0% Other Services, 5.0% Miscellaneous, 14.2% Real Estate Investment, 32.0% Manufacturing, 5.5% Arts/Entertainment/ Recreation, 9.5% Wholesale Trade, 8.6% Accommodations/ Food Services, 7.1% Healthcare, 6.8% Total Commercial Loan Portfolio by Industr
Oceanfirst Financial — Keefe, Bruyette & Woods Community Bank Investor Conference 2010 on 6ix