Oceanfirst Financial Corp. · NASDAQ:OCFC
Oceanfirst Financial — Corporate Update (March 2020)
27 slides from Oceanfirst Financial's corporate update, Mar 24, 2020
Slide 1: COVID-19 Pandemic Response Overview
. . . Exhibit 99.1 OceanFirst Financial Corp. COVID-19 Pandemic Response Overview March 24, 2020 . . .
Slide 2: Forward Looking Statements
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Forward Looking Statements In addition to historical information, this presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe fu
Slide 3: Operational Response and Preparedness
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Operational Response and Preparedness . . . M A R C H | 2020 3
Slide 4: Timeline of Actions
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Timeline of Actions Management initiated preparations beginning in January with continuous updates implemented as COVID-19 spread JANUARY FEBRUARY MARCH Monitor Act Escalate Monitoring information regarding flu Feb. 4 – First Pandemic Planning Meeting Begin
Slide 5: Pandemic Oversight Committee (POC) Activated on March 6, 2020
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . POC Activated on March 6, 2020 Pandemic Oversight Committee (POC) Board Involvement Engaged Meetings 7-days a week, 2x a day Finance Committee • Chairman, President and CEO • Chief Operating Officer • Chief Risk Officer (Committee Chair) HR/Compensation • C
Slide 6: Operational Response and Preparedness
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Operational Response and Preparedness • Dispersion of key operating functions, (e.g. wire, treasury, call center, and executive) • Since March 3rd, Executive and other key officers have been dispersed and either working from home or other OFB locations • 20
Slide 7: Employee Protection & Assistance
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Employee Protection & Assistance Taking Care of Employees Daily Staff Readiness Reporting • OceanFirst employees continue to rise to Remote Staff Data as of March 24, 2020 the challenge to deliver banking services with extraordinary care • Pandemic Personal
Slide 8: Programs to Support Our Clients and Communities
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Programs to Support Our Clients and Communities . . . M A R C H | 2020 8
Slide 9: Programs to Support Our Clients and Communities
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Programs to Support Our Clients and Communities On March 16, 2020, OceanFirst Bank announced Borrower Relief Programs to provide relief for our business clients and mortgage customers. These programs require Bank approval and must be requested by the custom
Slide 10: Branch Delivery Changes
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Branch Delivery Changes • Temporarily closed 12 branches and directed customers to local receiving branches with additional temporary closures and changes to branch hours continually assessed • Branches are providing drive-thru only service for customer tra
Slide 11: Additional Customer Considerations
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Additional Customer Considerations • Waive late payment fees and overdraft fees for healthcare workers, first responders and customers directly impacted by COVID-19 – upon request. • Waive early CD withdrawal penalties. • Assist debit card customers with me
Slide 12: Digital Support Plays Critical Role
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Digital Support Plays Critical Role1 Daily In-Branch Transaction Count PrePandemic Pandemic Feb Avg 20,000 18,000 16,000 14,000 Avg 4.0NJ = 12,000 10,000 8,000 4.7 = OceanFirst 6,000 4,000 2,000 - 2/3 3/2 3/9 2/10 2/17 2/24 3/16 • 26% fewer in-branch transa
Slide 13: Customer Reaction to Pandemic Programs
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Customer Reaction to Pandemic Programs Customer Satisfaction has been positive since beginning of limited branch operations: ”They were very flexible in these trying times…we are living in a shutdown zone, nothing that the bank can make better except for ma
Slide 14: Financial Data
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Financial Data . . . M A R C H | 2020 14
Slide 15: Balance Sheet Concentrations
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Balance Sheet Concentrations Potential indirect impact from Only 15% of the balance Pandemic sheet has been extended to commercial borrowers that may be sensitive to Pandemic impacts. . . . Potential direct impact from M A R C H | 2020 Pandemic 15 Pro-forma
Slide 16: Owner Occupied Real Estate / C&I by Industries
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Owner Occupied Real Estate / C&I by Industries Sectors that May Experience Direct Impacts from the Pandemic (Does not reflect an additional $233M of undrawn commitments) . . . Note: Includes but not limited to C&I and Owner-Occupied Real Estate M A R C H |
Slide 17: Owner Occupied Real Estate / C&I (Secured By Real Estate vs Non-Real Estate Collateral)
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Owner Occupied Real Estate / C&I (Secured By Real Estate vs Non-Real Estate Collateral) Sectors that May Experience Direct Impacts from the Pandemic . . . M A R C H | 2020 17 Pro-forma amounts as of December 31, 2019, inclusive of Two River and Country Bank
Slide 18: Investor Real Estate by Industries
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Investor Real Estate by Industries Sectors that May Experience Indirect Impacts from the Pandemic (Does not reflect an additional $11M of undrawn commitments) . . . M A R C H | 2020 18 Pro-forma amounts as of December 31, 2019, inclusive of Two River and Co
Slide 19: Recap of Hurricane Sandy Experience
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Recap of Hurricane Sandy Experience Experience from Superstorm Sandy (October 2012) offers insight to create strategy for Coronavirus Borrower Relief Programs Loans Impacted Financial Impact (Forbearance Program) • 133 Loans • $1.8 Million provision – Q4 20
Slide 20: Actions to Offset NIM Compression
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Actions to Offset NIM Compression • Established floors for fixed and floating rate commercial loans • Required minimum loan spreads over LIBOR and US Treasuries • Focus on Interest Rate Swaps for longer term, higher loan amounts to reduce bank interest rate
Slide 21: Historical Credit Quality
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Historical Credit Quality 0.70 0.60 58 basis points peak net charge-off ratio in 2011 0.60 0.50 0.50 0.40 0.40 • Credit metrics reflect 0.30 conservative lending culture NPA/TA NPA/TA (%) offs/Loans Receivable (%) Receivable offs/Loans 0.30 - • Allowance fo
Slide 22: Capital Ratio & Tangible Book Value Review
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Capital Ratio & Tangible Book Value Review $16.00 10.0 15.13 • Strong and stable capital position $15.00 9.71 with 17% in TBVPS growth from 9.5 $14.00 2016 to 2019 12.94 $13.00 • Limited tangible book value 9.0 dilution in 2020 resulting from the $12.00 Two
Slide 23: Supplementary Data
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Supplementary Data . . . M A R C H | 2020 23
Slide 24: Links to Regulatory Resources: OCC Information
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Links to Regulatory Resources: Office of the Comptroller of Currency (OCC) Information COVID-19 is a respiratory disease caused by a novel (new) coronavirus that was first detected in Wuhan, Hubei Province, China. The OCC is working cooperatively with all s
Slide 25: Links to Regulatory Resources: OCC Additional Links
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Links to Regulatory Resources: Office of the Comptroller of Currency (OCC) Additional Links Supervisory Guidance • OCC Bulletin 2020-22: Short-Term Investment Funds: Interim Final Rule and Order • OCC Bulletin 2020-21: Troubled Debt Restructurings: Interage
Slide 26: Links to Regulatory Resources: Troubled Debt Restructurings (TDRs)
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Links to Regulatory Resources: Troubled Debt Restructurings (TDRs) FFIEC website • https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_201912_i.pdf Bank Accounting Advisory Series (BAAS) • Refer to Topic 12B • https://www.occ.gov/publications-and-resour
Slide 27: Investor Relations Inquiries
COVID - 19 PANDEMIC RESPONSE OVERVIEW. . . Investor Relations Inquiries Jill A. Hewitt Senior Vice President, Director of Investor Relations & Corporate Communications jhewitt@oceanfirst.com (732) 240-4500, ext. 7513 . . . M A R C H | 2020 27