Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (November 2014)
26 slides from Oceanfirst Financial's investor presentation, Nov 12, 2014
Slide 1: OceanFirst Financial Corp. Investor Presentation November 2014
Exhibit 99.1 OceanFirst Financial Corp. INVESTOR PRESENTATION NOVEMBER 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 Community Bank serving the Central Jersey Shore - $2.3 billion in assets and 23 branch offices Targeting growth opportunities in Monmouth County Market Cap $287 million Core deposits – 88.1% of total deposits Locally originated loan portfolio - no SNCs C&I loans and lines Residenti
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 33 22 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, wealth management, and bankcard services Guarding
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) 22 2,541,705 17.45 2 Hudson City Bancorp Inc. (NJ)(1) 14 2,212,695 15.19 3 Wells Fargo Ban
Slide 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition *Time deposit duration of 18 months NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition NASDAQ: OCFC 9
Slide 10: Highlights – Third Quarter 2014
Highlights – Third Quarter 2014 Increased the quarterly dividend by $0.01, or 8.3%, to $0.13 per share, 42% payout ratio Non-performing loans decreased $22.3 million, or 54.8% Grew commercial loan portfolio $27.2 million, 16.7% annualized; 5 th consecutive quarter of growth Earnings per share of $0.
Slide 11: Highlights – Risk Management
Highlights – Risk Management For the nine months ended September 30, 2014: Interest Rate Risk Management Extended $150 million of FHLB advances into 3 – 5 year terms $70 million of retail checking migrated to non-interest bearing Core deposits(1) are 88.1% of total deposits, a significant benefit in
Slide 12: Credit Metrics Reflect Conservative Culture
Credit Metrics Reflect Conservative Culture Net charge-offs as percent of average loans outstanding (annualized for 2014) 0.16% 0.18% 0.57% 0.36% 0.16% 0.54% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 2010 2011 2012 2013 (1) 9/30/2014 (2) Residential Consumer Commercial Real Estate Commerc
Slide 13: 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 9/30/14 (Nine Months) Net Charge-Offs Net Charge-Offs Attributable to Bulk Sale of NPL's Provision for Loan Losses (1)Spike in charge-offs was due to a change in charge-off po
Slide 14: Net Interest Margin
Net Interest Margin Stabilizing Close to Historical Levels Quarterly Trend Historical Average Net Interest Margin (3.28%) NASDAQ: OCFC 14
Slide 15: Diversified Streams of Non-Interest Income
Diversified Streams of Non-Interest Income 0.90% 0.80% $17.6M 0.70% Targeted Growth 0.60% Areas 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 9/30/2014 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Wealth Management 2011 Non-Interest In
Slide 16: 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% 4.0% 0.40% 2.0% 0.20% 0.0% 2009 2010 2011 2012 2013(1) 9/30/2014 0.0% (Annualized) Return on Equity Return on Assets (1)Excludes after-tax impact of $3.1 millionin non-recurring charges related to stra
Slide 17: Prudently Managing Excess Capital in Near Term
Prudently Managing Excess Capital in Near Term Stock Repurchases Cash Dividends Notes: Stock Repurchases – $14.77 Average Cost per Share. 2011 Quarterly dividend rate increased by $0.01, or 8.3%, in October 2014. NASDAQ: OCFC 17
Slide 18: 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 Commercial loans increase at double digit growth rate for five consecutive quarters Superstorm Sandy recovery providing market opportunity* Continuing Strategic Execution Sold most non-
Slide 19: Why OCFC…?
Why OCFC…? Fundamental franchise value – superior market demographics Seasoned and effective management team Sandy response and experience Substantial insider ownership – aligned with shareholders’ interests Succession planning affirmed – 2014 Attractive deposit mix and market share Conservative cre
Slide 20: Attractive Valuation Metrics
Attractive Valuation Metrics OCFC Peers(1) Valuation Price / Tang. Book Value 129% 154% Price / LQA EPS 13.3x 14.1x Price / Estimated EPS 12.5x 13.5x Cash Dividend Yield 3.1% 2.9% 1) Peers include: DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PGC, SNBC, SUBK, UVSP and WSFS Note: Financial data as of the most
Slide 21: Thank You for Your Interest in OceanFirst Financial Corp.
THANK YOU FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. NASDAQ: OCFC 21
Slide 22: Market Demographics
APPENDIX 1 Market Demographics Ocean Monmouth Middlesex New Jersey National Number of Offices 19 4 1 % of OceanFirst Deposits 86.2 10.9 2.9 Market Rank 4 17 35 Market Share (%) 10.2 0.9 0.2 Population 583,000 628,000 831,000 Projected 2014-2019 1.4 — 3.0 1.6 3.5 Population Growth (%) Median Househol
Slide 23: Commercial Portfolio Metrics
APPENDIX 2 Commercial Portfolio Metrics Commercial Real Estate (CRE) (1) Total portfolio $599.9 million % of Total Loan Portfolio 36.1% Average size of CRE loans $840,000 Largest CRE loan $14.9 million Current Pipeline $37.4 million Weighted Average Yield 4.42% Weighted Average Repricing Term 6.2 ye
Slide 24: Commercial Portfolio Segmentation
APPENDIX 2 (Cont’d) Commercial Portfolio Segmentation Total Commercial Loan Exposure Real Estate Investment by Property Classification by Industry Classification Diversified portfolio provides protection against industry- specific credit events. As of September 30, 2014. NASDAQ: OCFC 24
Slide 25: Residential Portfolio Metrics
APPENDIX 3 Residential Portfolio Metrics Residential Real Estate Total Portfolio $782.8 million % of Total Loan Portfolio 47.1% Average size of mortgage loans $191,000 Interest-only loans $19.0 million - % of total 1-4 family loans 2.5% - Weighted average loan-to-value ratio (using original or most
Slide 26: Superstorm Sandy Recovery
APPENDIX 4 Superstorm Sandy Recovery Loan Portfolio Performed Well Net Charge-offs related to Superstorm Sandy total a modest $424,000 Damage Estimate ( FEMA 2012): 50,103 structures damaged were located in Monmouth and Ocean County 3,033 structures classified as major damage or totally destroyed Mu
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