OCEANFIRST FINANCIAL CORP - FORM 8-K - EX-99.1 - WRITTEN PRESENTATION WHICH OCEANFIRST FINANCIAL CORP. INTENDS TO PROVIDE

Attached files

file	filename
8-K - FORM 8-K - OCEANFIRST FINANCIAL CORP	d8k.htm

NASDAQ: OCFC

OceanFirst

Financial Corp.

John

Garbarino

Chairman,

CEO

Michael

Fitzpatrick

Executive

Vice

President,

CFO

INVESTOR PRESENTATION

NOVEMBER 2010

Exhibit 99.1

NASDAQ: OCFC

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 forward-

looking statements are generally identified by use of the words “believe”, “expect”,

“intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”,

“potential”, “confident”

or similar expressions. The Company’s ability to predict results

the

actual

effect

future

plans

strategies

inherently

uncertain.

Factors

which

could have a material adverse effect on the operations of the Company and the

subsidiaries include, but are not limited to, changes in interest rates, general economic

conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S.

Government, including policies of the U.S. Treasury and the Board of Governors of the

Federal Reserve System, the quality or composition of the loan or investment portfolios,

demand

for

loan

products,

deposit

flows,

competition,

demand

for

financial

services

the Company’s market area and accounting principles and guidelines. These risks and

uncertainties are further discussed in the Company’s Annual Report on Form 10-K for

the year ended December 31, 2009 and should be considered in evaluating forward-

looking statements and undue reliance should not be placed on such statements. The

Company

does

not

undertake

–

and

specifically

disclaims

any

obligation

–

publicly

release the result of any revisions which may be made to any forward-looking

statements to reflect events or circumstances after the date of such statements or to

reflect the occurrence of anticipated or unanticipated events.

NASDAQ: OCFC

Our 108-Year History

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 Jersey shore.

Completed a follow-on common stock offering in November 2009 with

part of the $54.2 million proceeds used on December 30 to redeem

the Preferred Stock investment made by the U.S. Treasury.

OceanFirst

went public in 1996 and since then has been successful

as a public company generating value for our shareholders.

NASDAQ: OCFC

(

Ocean

Burlington

Morris

Sussex

Atlantic

Salem

Warren

Monmouth

Hunterdon

Cumberland

Bergen

Mercer

Somerset

Middlesex

Gloucester

Camden

Passaic

Cape May

Essex

Union

Hudson

Community Bank serving the

Jersey Shore -

$2.2 billion in

assets and 23 branch offices

Market Cap $224 million (as of

October 28, 2010)

Core

deposit

funded

–

81.6%

average total deposits

Locally originated loan portfolio

with no brokered loans

Residential and commercial

mortgages

Consumer equity loans and

lines

C&I loans and lines

Corporate Profile

Philadelphia

New York

Note: See Appendix 1 for Market Demographic information.

NASDAQ: OCFC

Experienced Executive Management Team

Insider ownership of 28.0% is substantial

OceanFirst

Bank ESOP 10.5%

OceanFirst

Foundation 7.4%

Directors & Senior Executive Officers 10.1% (CEO 4.9%)

As of the March 9, 2010 proxy record date.

Name

Position

# of Years in

Banking

# of Years

at OCFC

John R. Garbarino

Chairman, Chief Executive Officer

Vito R. Nardelli

President, Chief Operating Officer

Michael J. Fitzpatrick

Executive Vice President, Chief Financial Officer

NASDAQ: OCFC

Our Strategy

Positioned as the leading Community Bank alternative in attractive

Central Jersey Shore market

Offering a full range of consumer and commercial banking products

generating diversified income streams

Guarding

credit

quality

ALL

business

cycles

Transitioning the balance sheet with emphasis on core deposit

funding and commercial lending growth

Ready for in-market roll-up opportunities presented by smaller,

“regulatory fatigued”

competitors

NASDAQ: OCFC

Highlights –

Third Quarter 2010

Total revenue (i.e. net interest income and total other income)

increased

12.3%

compared

Q’09

Diluted earnings per share increased to $0.29 compared to $0.27

for

the

Q’10.

Return

average

stockholders’

equity

was

10.7% for the quarter

Core

deposits

(i.e.

all

deposits

excluding

time

deposits)

increased

$102.4 million, and comprise 81.6% of average deposits

Tangible common equity capital increased to 8.96% of assets

NASDAQ: OCFC

Increasing Deposit Market Share

June 30, 2010

# of

Dep. In Mkt.

Mkt. Shr.

Rank

Institution

Branches

($000)

(%)

Ocean County, NJ

Hudson City Bancorp Inc. (NJ)

2,773,130

21.66

Wells Fargo & Co. (CA)

1,810,777

14.14

TD Bank National Association (Canada)

1,776,218

13.87

OceanFirst

Financial Corp. (NJ)

1,282,436

10.02

Banco

Santander S.A. (Spain)

1,254,237

9.80

Bank of America Corp. (NC)

1,234,572

9.64

Investors Bancorp Inc. (MHC) (NJ)

637,788

4.98

PNC Financial Services Group (PA)

420,227

3.28

Sun Bancorp Inc. (NJ)

235,558

1.84

Manasquan Savings Bank (NJ)

225,540

1.76

Total For Institutions In Market

191

12,803,921

Source: FDIC

Moving from 6

to 4

in Last Year

NASDAQ: OCFC

Interest

Bearing

Demand

Deposits,

28.2%

Non-Interest

Bearing

Demand

Deposits,

8.9%

Jumbo Time

Deposits(1),

8.1%

Retail Time

Deposits,

27.7%

MMDA &

Savings,

27.1%

Deposit Composition Transition

Interest

Bearing

Demand

Deposits,

7.6%

Non-Interest

Bearing

Demand

Deposits,

0.7%

Jumbo Time

Deposits(1),

4.7%

Retail Time

Deposits,

61.4%

MMDA &

Savings,

25.6%

Interest

Bearing

Demand

Deposits,

52.0%

Non-Interest

Bearing

Demand

Deposits,

8.5%

Jumbo Time

Deposits(1),

4.3%

Retail Time

Deposits,

13.4%

MMDA &

Savings,

21.8%

(1) Jumbo CDs have a balance of $100,000 or greater.

December 31, 2005

September 30, 2010

December 31, 1996

NASDAQ: OCFC

Commercial

R.E., 25.3%

Residential

R.E., 56.9%

Commercial

& Industrial,

4.5%

Construction

R.E., 0.8%

Consumer &

Other(1),

12.5%

Loan Composition Transition

Commercial

R.E., 3.2%

Residential

R.E., 89.6%

Commercial

& Industrial,

0.4%

Construction

R.E., 1.1%

Consumer &

Other(1),

5.7%

Commercial

R.E., 16.5%

Residential

R.E., 69.8%

Commercial

& Industrial,

3.8%

Construction

R.E., 1.3%

Consumer &

Other(1),

8.6%

(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.

December 31, 2005

September 30, 2010

December 31, 1996

NASDAQ: OCFC

NPL’s

Controlled in a Diversified Portfolio

Non-performing loan (“NPL”).

Data as of September 30, 2010.

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

Commercial

Real Estate and

Construction

Consumer

One-to-Four

Family

Total NPL

NASDAQ: OCFC

Prudent Credit Risk Management

Building Loan Loss Reserves

$2,000

$4,000

$6,000

$8,000

12/31/08

12/31/09

9/30/10

Net Charge-Offs

Provision for Loan Losses

Year-Ended

Nine Months

NASDAQ: OCFC

Prudent Capital Management

Increasing Tangible Common Equity

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12/31/08

12/31/09

9/30/10

NASDAQ: OCFC

Well Below Residential Benchmarks

Quarterly Delinquency Trends

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

2008

2009

2010

OCFC All Mortgage Loans

MBA NJ Mortgage Loans

MBA NJ Conventional (Prime) Mortgage Loans

NASDAQ: OCFC

Attractive, Expanding Net Interest Margin

2.5%

2.7%

2.9%

3.1%

3.3%

3.5%

3.7%

3.9%

2008

2009

Nine Months Ended 9/30/10

NASDAQ: OCFC

Generating Significant Non-Interest Income

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

0.9%

2008

2009

Nine Months Ended

9/30/10 (Annualized)

NASDAQ: OCFC

Delivering Double-Digit Return on Equity

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2008

2009

Nine Months Ended

9/30/10 (Annualized)

NASDAQ: OCFC

Peers include: ALNC, CNBC, DCOM, FFIC, HUVL, LBAI, PBNY, PGC, SMTB, STBC, STL, SUBK, and TRST

Note:

Financial data for the period ended September 30, 2010, except that PGC, SMTB and STL is as of June 30, 2010;

Source: Sandler O’Neill.

Share price as of October 28, 2010.

Attractive Valuation Metrics

OCFC

Peers¹

Valuation

Price / Tang. Book Value

112%

129%

Price / LQA EPS

10.3x

12.9x

Price / Estimated EPS

10.6x

11.4x

Cash Dividend Yield

4.0%

3.1%

NASDAQ: OCFC

Why OCFC…?

Fundamental

franchise

value

–

superior

market

demographics

Experienced management team with substantial insider ownership

Increasing market share

Conservative credit culture and profile

Solid financial performance

Strong balance sheet and capital base

Attractive current valuation

NASDAQ: OCFC

THANK YOU

FOR YOUR INTEREST IN

OCEANFIRST FINANCIAL CORP.

NASDAQ: OCFC

Market Demographics

APPENDIX 1

Ocean

Monmouth

Middlesex

New Jersey

National

Number of Offices

% of OceanFirst

Deposits

83.3

13.4

3.3

Market Rank

Market Share (%)

10.0

1.1

0.2

Population

578,728

649,429

794,605

Projected 2010-2015

Population Growth (%)

4.0

2.0

1.8

1.2

3.8

Median Household Income ($)

60,936

82,974

78,561

72,519

54,442

Projected 2010-2015 Median

Household Income Growth (%)

15.5

14.3

17.5

14.7

12.4

Deposit data as of June 30, 2010.

Demographic data as of June 30, 2010.

Source: SNL Financial

NASDAQ: OCFC

One-to-Four Family Loans

Average size of mortgage loans

$187,000

Interest-only loans - Amount

$90.9 million

- Percent of total one-to-four family loans

9.3%

Stated income loans - Amount

$65.2 million

- Percent of total one-to-four family loans

6.7%

Weighted average loan-to-value ratio

58%

Weighted average loan-to-value ratio of loans originated for the year ended December 31, 2009

62%

Weighted average loan-to-value ratio of loans originated for the nine months ended September 30, 2010

61%

Average FICO score

745

Average FICO score of loans originated for the year ended December 31, 2009

756

Average FICO score of loans originated for the nine months ended September 30, 2010

763

Percent of jumbo loans at origination

46.0%

Percent of loans outside the New York/New Jersey market

6.0%

Percent of loans for second homes

7.4%

APPENDIX 2

Residential Portfolio Metrics

As of September 30, 2010, unless otherwise noted.

NASDAQ: OCFC

Commercial Real Estate

Average size of commercial real estate loans

$689,000

Largest commercial real estate loan

$13.7 million

Commercial Loans

Average size of commercial loan

$159,000

Largest commercial loan

$16.0 million

APPENDIX 2

(Cont’d)

Commercial Portfolio Metrics

As of September 30, 2010.

NASDAQ: OCFC

Commercial Portfolio Segmentation

Construction, 8.4%

Retail Trade, 4.0%

Other Services, 4.9%

Miscellaneous, 15.2%

Real Estate

Investment, 31.7%

Manufacturing, 5.4%

Arts/Entertainment/

Recreation, 9.4%

Wholesale Trade,

7.6%

Accommodations/

Food Services, 6.8%

Healthcare, 6.6%

Total Commercial Loan Portfolio

by Industry Concentration

Real Estate Investment by

Property Concentration

Office, 27.4%

Multi-Family, 8.3%

Land, 4.9%

Commercial

Development, 6.0%

Residential

Development, 8.7%

Miscellaneous, 12.1%

Retail Store, 7.7%

Industrial/

Warehouse, 15.5%

Shopping Center, 9.4%

As of September 30, 2010.

APPENDIX 2

(Cont’d)

Attached files

Stock widget

Investing forum

OCEANFIRST FINANCIAL CORP Reports

Also read