Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Investor Presentation (July 2014)
25 slides from Oceanfirst Financial's investor presentation, Jul 28, 2014
Slide 1: OceanFirst Financial Corp. Investor Presentation July 2014
Exhibit 99.2 OceanFirst Financial Corp. INVESTOR PRESENTATION JULY 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 Sussex Passaic Bergen Warren Morris Essex Hudson New York Union Hunterdon Somerset Middlesex Community Bank serving the Central Jersey Shore - $2.3 billion in assets and Mercer Monmouth 23 branch offices Market Cap $275 million Philadelphia Core deposits – 87.4% of total deposits B
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 32 21 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) 21 2,460,349 16.88 2 Hudson City Bancorp Inc. (NJ)(1) 14 2,415,792 16.57 3 Wells Fargo Ban
Slide 8: Strategic Deposit Composition Transition
Strategic Deposit Composition Transition Non- Interest Time June 2014 Interest Checking MMDA & Savings Deposits Checking Non- Dec 2008 Interest Checking Interest MMDA & Savings Time Deposits Checking Interest Dec 1996 Checking MMDA & Savings Time Deposits 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 8
Slide 9: Strategic Loan Composition Transition
Strategic Loan Composition Transition Owner- Consumer June 2014 Investment CRE C&I Occupied CRE & Other Residential R.E. Dec 2008 Owner- Consumer & Investment CRE Occupied C&I Other Residential R.E. CRE Dec 1996 Investment Consumer & CRE Other Residential R.E. 0% 20% 40% 60% 80% 100% NASDAQ: OCFC 9
Slide 10: Highlights – Second Quarter 2014
Highlights – Second Quarter 2014 Grew commercial loan portfolio $35.3 million, 22.9% annualized Earnings per share of $0.30, 9.5% ROE & 0.90% ROA Net interest margin stable at 3.35%, above historical average New 5% common stock repurchase plan put in place Tangible common equity of 9.3% of assets NA
Slide 11: Highlights – Risk Management
Highlights – Risk Management Interest Rate Risk Management Extended $110 million of FHLB advances into 3 – 5 year terms $64 million of retail checking migrated to non-interest bearing Retail and commercial checking growth replacing more price sensitive government deposits Asset Quality Improvements
Slide 12: Stabilized NPL's in a Diversified Portfolio
Stabilized NPL’s in a Diversified Portfolio Exposure Primarily in Lower Risk Residential 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% (1) 2009 2010 2011 2012 2013 6/30/2014 Residential Consumer Commercial Real Estate Commercial Data as of December 31, unless otherwise indicated. (1) Increase attr
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 6/30/14 (Annualized) Net Charge-Offs Provision for Loan Losses (1) Spike in charge-offs was due to a change in charge-off policy to recognize the charge-off when the loan is d
Slide 14: Net Interest Margin
Net Interest Margin Stabilizing Close to Historical Levels 4.00% Quarterly Trend 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1996 1998 2000 2002 2004 2006 2008 2010 2012 2013 Q1 Q2 2014 2014 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% $17.0M 0.80% 0.70% Targeted Growth 0.60% Areas 0.50% 0.40% 0.30% $2.5M 0.20% 0.10% 0.00% 1996 6/30/14 (Annualized) Fees and Service Charges Gain on Sale of Loans BOLI Other BankCard Services Investment Services Wealth Management 2011 Non-Interest Inco
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% (1) 0.0% 2009 2010 2011 2012 2013 6/30/2014 (Annualized) Return on Equity Return on Assets (1)Excludes after-tax impact of $3.1 million in non-recurring charges related to st
Slide 17: Prudently Managing Excess Capital in Near Term
Prudently Managing Excess Capital in Near Term $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 2011 2012 2013 2014 (Six Months) Stock Repurchases Cash Dividends Note: Stock Repurchases – $14.74 Average Cost per Share 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 four consecutive quarters Superstorm Sandy recovery providing market opportunity* Continuing Strategic Execution FHLB Advances
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: 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 Number of Offices 20 5 1 % of OceanFirst Deposits 86.6 10.3 3.1 Market Rank 4 18 36 Market Share (%) 10.2 0.9 0.2 Population 577,000 635,000 816,000 Projected 2012-2017 1.6 1.0 2.1 1.2 3.5 Population Growth (%) Median Househ
Slide 22: Residential Portfolio Metrics
APPENDIX 2 Residential Portfolio Metrics Residential Real Estate Total Portfolio $812.9 million % of Total Loan Portfolio 48.8% Average size of mortgage loans $191,000 Interest-only loans $22.2 million - % of total 1-4 family loans 2.8% - Weighted average loan-to-value ratio (using original or most
Slide 23: Commercial Portfolio Metrics
APPENDIX 3 Commercial Portfolio Metrics Commercial Real Estate (CRE) (1) Total portfolio $577.1 million % of Total Loan Portfolio 34.6% Average size of CRE loans $841,000 Largest CRE loan $14.6 million (Secured by local university dormitory housing) Current Pipeline $59.1 million Weighted Average Yi
Slide 24: Commercial Portfolio Segmentation
APPENDIX 3 Commercial Portfolio Segmentation (Cont’d) Total Commercial Loan Exposure Real Estate Investment by by Industry Classification Property Classification Miscellaneous, 11.2% Multi-Family, 2.5% Retail Store, 9.6% Office, 36.0% Miscellaneous, 6.1% Public Administration, 7.1% Educational Servi
Slide 25: 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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