OCEANFIRST FINANCIAL CORP - FORM 8-K - EX-99.1 - TEXT OF WRITTEN PRESENTATION

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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

KEEFE, BRUYETTE & WOODS

COMMUNITY BANK

INVESTOR CONFERENCE

AUGUST 2, 2011

Exhibit 99.1

NASDAQ: OCFC

OceanFirst Financial Corp.

Forward Looking Statements:

This

presentation

contains

certain

forward-looking

statements

within

the

meaning

the

Private

Securities

Reform

Act

1995,

which

are

based

certain

assumptions

and

describe

future

plans,

strategies

and

expectations

the

Company.

These

forward-

looking

statements

are

generally

identified

use

the

words

“believe”,

“expect”,

“intend”,

“anticipate”,

“estimate”,

“project”,

“will”,

“should”,

“may”,

“view”,

“opportunity”,

“potential”,

similar

expressions

expression

confidence.

The

Company’s

ability

predict

results

the

actual

effect

future

plans

strategies

inherently

uncertain.

Factors

which

could

have

material

adverse

effect

the

operations

the

Company

and

the

subsidiaries

include,

but

are

not

limited

to,

changes

interest

rates,

general

economic

conditions,

levels

unemployment

the

Bank’s

lending

area,

legislative/regulatory

changes,

monetary

and

fiscal

policies

the

U.S.

Government,

including

policies

the

U.S.

Treasury

and

the

Board

Governors

the

Federal

Reserve

System,

the

quality

composition

the

loan

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

the

Company’s

Annual

Report

Form

10-K

for

the

year

ended

December

31,

2010

and

its

subsequent

securities

filings

and

should

considered

evaluating

forward-looking

statements

and

undue

reliance

should

not

placed

such

statements.

The

Company

does

not

undertake

–

and

specifically

disclaims

any

obligation

–

publicly

release

the

result

any

revisions

which

may

made

any

forward-looking

statements

reflect

events

circumstances

after

the

date

such

statements

reflect

the

occurrence

anticipated

unanticipated

events.

NASDAQ: OCFC

Our 109-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 Central New 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 demutualized

and issued stock for the first time in 1996 and

since then has succeeded as a public company in 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

Central Jersey Shore -

$2.2 billion

in assets and 23 branch offices

Market Cap $254 million (as of

July 26,

2011)

Core deposit funded –

84.0%

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 27.5% is

substantial –

aligned with shareholders

OceanFirst Bank ESOP 10.3%

OceanFirst Foundation 7.1%

Directors & Senior Executive Officers 10.1% (CEO 5.3%)

As of the March 9, 2011 proxy

record date.

# of Years in

Banking

President, Chief Operating Officer

Vito R. Nardelli

Executive Vice President, Chief Financial Officer

Michael J. Fitzpatrick

Chairman, Chief Executive Officer

John R. Garbarino

# of Years

at OCFC

Position

Name

NASDAQ: OCFC

Our Strategy

Positioned as the leading Community Bank alternative in attractive

Central

Jersey

Shore

market

–

growing

revenue

and

creating

additional value for our shareholders

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 roll-up opportunities presented by smaller, in-market

“regulatory fatigued”

competitors

NASDAQ: OCFC

Diluted earnings per share increased 3.7% to $0.28

Return on average stockholders’

equity was 9.9%

The net interest margin expanded 7 bps to 3.67%

Core

deposits

(i.e.,

all

deposits

excluding

time

deposits)

now

comprise 84.0% of total deposits

Capital position strengthened, as tangible common equity

increased to 9.5% of assets

Tangible book value grew 39¢

to $11.32 with increasing earnings

and Other Comprehensive Income

Highlights –

Second Quarter 2011

NASDAQ: OCFC

Increasing Primary Market Deposit 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,

54.4%

Non-Interest

Bearing

Demand

Deposits, 8.8%

Jumbo Time

Deposits(1),

4.8%

Retail Time

Deposits,

11.2%

MMDA &

Savings,

20.8%

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

December 31, 2005

June 30, 2011

December 31, 1996

NASDAQ: OCFC

Commercial

& Industrial,

3.3%

Commercial

R.E., 28.7%

Consumer &

Other(1),

12.1%

Residential

R.E., 55.9%

Loan Composition Transition

Commercial

& Industrial,

0.4%

Commercial

R.E., 4.3%

Consumer &

Other(1),

5.7%

Residential

R.E., 89.6%

Commercial

& Industrial,

3.8%

Commercial

R.E., 17.8%

Consumer &

Other(1),

8.6%

Residential

R.E., 69.8%

(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

June 30, 2011

December 31, 1996

NASDAQ: OCFC

NPL’s in a Diversified Portfolio

Non-performing loan (“NPL”).

Data as of December 31 unless otherwise indicated.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2008

2009

2010

6/30/2011

Residential - Primary Bank delivery channel

Consumer

Commercial Real Estate and Construction

Commercial

Exposure Concentrated in Lower Risk One-to-Four Family

NPL’s

originated by

alternative

Bank delivery

channels.

NASDAQ: OCFC

Provision for Loan Losses Exceed Charge-Offs

Building ALLL

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Charge-Offs - One-to-Four Family

Charge-Offs - Consumer

Charge-Offs - Commercial Real Estate

Charge-Offs - Commercial

Provision for Loan Losses

12/31/08

12/31/09

12/31/10

6/30/11

NASDAQ: OCFC

Net Interest Margin

Off Cyclical High But Expanded in Q1 and Q2

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2008

2009

2010

2011

NASDAQ: OCFC

Diversified Streams of Non-Interest Income

2011

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

1996

6/30/2011 (Annualized)

Fees and Service Charges

Gain on Sale of Loans

BOLI

Other

Merchant Services

Investment Services

Trust

Non-Interest Income excludes gain (loss) from other real estate operations.

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

2010

2011 (Annualized)

(1) Secondary capital raise

(1)

NASDAQ: OCFC

Challenge Today is to Grow Revenue

Build Shareholder Value

Business

Plan

targets

growth

within

existing

footprint

–

increasing

market share

Twelve

novo

branches

since

2000

have

performed

well

–

still

present room for additional growth

Non-interest income streams have been diversified, more important

as additional margin expansion may prove troublesome

Assessing opportunistic roll-up of community banks in market

Financial performance to Plan builds value and preserves the right

to remain independent

NASDAQ: OCFC

(1)

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

Note:

Financial data as of the most recent period available; market data as of July 26, 2011.

Source: Sandler O’Neill.

Attractive Valuation Metrics

OCFC

Peers

(1)

3.56%

11.0x

12.0x

119%

Valuation

Price / Tang. Book Value

150%

Price / LQA EPS

13.6x

Price / Estimated EPS

11.9x

Cash Dividend Yield

3.07%

NASDAQ: OCFC

Why OCFC…?

Fundamental franchise value –

superior market demographics

Experienced management team with substantial insider ownership –

aligned with shareholders

Increasing deposit market share

Conservative credit culture and profile

Solid financial performance –

developing shareholder value

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

Number of Offices

12.4

14.7

17.5

14.3

15.5

Projected 2010-2015 Median

Household Income Growth (%)

54,442

72,519

78,561

82,974

60,936

Median Household Income ($)

3.8

1.2

1.8

2.0

4.0

Projected 2010-2015

Population Growth (%)

794,605

649,429

578,728

Population

0.2

1.1

10.0

Market Share (%)

Market Rank

3.3

13.4

83.3

% of OceanFirst Deposits

National

New Jersey

Middlesex

Monmouth

Ocean

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

$185,000

Interest-only loans - Amount

$69.5 million

- Percent of total one-to-four family loans

7.5%

- Weighted average loan-to-value ratio (using original appraisal)

68%

Stated income loans - Amount

$57.6 million

- Percent of total one-to-four family loans

6.2%

Portfolio weighted average loan-to-value ratio (using original appraisal)

59%

Weighted average loan-to-value ratio of loans originated for the year ended December 31, 2010

60%

Weighted average loan-to-value ratio of loans originated for the six months ended June 30, 2011

62%

Average FICO score

746

Average FICO score of loans originated for the year ended December 31, 2010

764

Average FICO score of loans originated for the six months ended June 30, 2011

758

Percent of jumbo loans at origination

45.5%

Percent of loans outside the New York/New Jersey market

5.6%

Percent of loans outside Ocean/Monmouth Counties

39%

Percent of loans for second homes

7.7%

APPENDIX 2

Residential Portfolio Metrics

As of June 30, 2011, unless

otherwise noted.

NASDAQ: OCFC

Commercial Real Estate

Average size of commercial real estate loans

$751,000

Largest commercial real estate loan

$19.8 million

(Secured by local university dormitory housing)

Commercial Loans

Average size of commercial loan

$218,000

Largest commercial loan

$3.8 million

APPENDIX 2

(Cont’d)

Commercial Portfolio Metrics

As of June 30, 2011.

NASDAQ: OCFC

Commercial Portfolio Segmentation

Construction, 9.5%

Retail Trade, 4.1%

Public

Administration, 4.6%

Miscellaneous, 8.4%

Healthcare, 5.6%

Accommodations/

Food Services, 6.1%

Wholesale Trade,

6.7%

Arts/Entertainment/

Recreation, 8.3%

Manufacturing, 4.9%

Real Estate

Investment, 33.3%

Educational Services,

4.0%

Other Services, 4.5%

Total Commercial Loan Exposure

by Industry Concentration

Real Estate Investment by

Property Concentration

Office, 37.6%

Multi-Family, 8.5%

One-to-Four Family,

5.8%

Miscellaneous, 8.4%

Retail Store, 7.9%

Industrial/

Warehouse, 21.1%

Shopping Center, 10.7%

As of June 30, 2011.

APPENDIX 2

(Cont’d)

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