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8-K - 8-K INVESTOR PRESENTATION - OCEANFIRST FINANCIAL CORP | ocfc8-kinvestorpresentatio.htm |
. . .
OceanFirst Financial Corp.
Investor Presentation
FIG Partners 21st Bank CEO Forum
January 31, 2018 – February 1, 2018
J A N U A R Y 3 1 , 2 0 1 8
. . .
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 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,” or similar
expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its
subsidiaries include, but are not limited to: changes in interest rates, general economic conditions, levels of unemployment in
the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood
insurance premiums, the level of prepayments on loans and mortgage-backed securities, 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 in the Company’s market area, accounting principles and guidelines and the
Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the
Company’s Annual Report on Form 10-K for the year ended December 31, 2016, under Item 1A - Risk Factors and elsewhere,
and subsequent securities filings 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, to
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.
Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not
reflect actual results.
I N V E S T O R P R E S E N T A T I O N
2 J A N U A R Y 3 1 , 2 0 1 8
. . .
About OceanFirst
Financial Corp.
3 J A N U A R Y 3 1 , 2 0 1 8
. . .
OceanFirst Financial Corp.
• NASDAQ: OCFC
• Market Cap: $874.2 million1
• Founded in 1902
• Asset Value of $5.4 billion2
• 46 Branches in Central and Southern
New Jersey2
I N V E S T O R P R E S E N T A T I O N
4
1 As of January 25, 2018
2 As of December 31, 2017
J A N U A R Y 3 1 , 2 0 1 8
Headquarters
OceanFirst Bank Branches
Sun National Bank Branches
Loan Office
. . .
Investment Thesis
• Low-Cost and Durable Deposit Base
• Cost of deposits is one of the lowest in the state of New Jersey at 32 basis points, increasing slowly in
response to rising rate environment
• Strength of Assets
• Strong balance sheet underpins flexibility to grow and diversify the business
• Digital Innovation
• Continuous development and investment in direct banking and cyber security initiatives to stay current with
leading industry practices
• Disciplined and Strategic M&A
• Acquired attractive and underappreciated assets in exurban markets at attractive prices
• Bench Strength
• Deep banking, regulatory, M&A, and integration experience
• Conservative Risk Culture
• Effective and efficient commitment to management of credit, interest rate and regulatory / compliance risk
• Insider Ownership
• Substantial insider ownership aligned with shareholder interest
I N V E S T O R P R E S E N T A T I O N
5 J A N U A R Y 3 1 , 2 0 1 8
. . .
Commitment to Execution
Our Recent Accomplishments...
• Four Acquisitions in Two Years
• Building a “Digital Culture”
Throughout the Bank
• Commercial Loan Growth
• Strong Total Shareholder Return
I N V E S T O R P R E S E N T A T I O N
6
…Lead to Our Path Forward
• Local to Regional Scale
• Increased Investment in Direct
Banking & Digital Engagement
• Reimagining our Real Estate
• Further Loan Portfolio
Diversification: Sector, Industry,
Geography and Vintage
J A N U A R Y 3 1 , 2 0 1 8
. . .
Our Business
7 J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
8
Fourth Quarter and Annual Highlights
Financial Highlights (4th Quarter)
• Core Net Income of $14.9 million
• Up 41% y/y
• Core Diluted EPS of $0.45
• Up 18% y/y
• Net Interest Income of $42.5 million
• Up 19% y/y
• Core Efficiency Ratio of 53.7%
• Down from 61.5% y/y
• Quarterly Dividend $0.15 per share
• 84th consecutive quarter
• 33% payout on core earnings
Operational Highlights
• Branch consolidation
• 15 closed in 2017
• Core deposits1 represent 86% of total
deposits; an effective hedge against
rising interest rates
• $13.6 million of residential loans
sold with high risk characteristics
• Digital activations rose 29.6% in 2017
• Key regulatory hurdles resolved for
the Sun Bancorp, Inc. acquisition
J A N U A R Y 3 1 , 2 0 1 8
1 All deposits except certificates of deposit
. . .
I N V E S T O R P R E S E N T A T I O N
9
Net Interest Margin
Operational Highlights
• Cost of deposits increased only 4 bps
from 2016 to 2017
• Non-interest bearing deposits are
17% of total deposits
• Balanced interest rate risk position
(1) Source: Bank Reg Data
3.00
3.10
3.20
3.30
3.40
3.50
3.60
3.70
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Net Interest Margin
OceanFirst Bank Peer Average
Pe
rc
en
ta
ge
3.61
3.34
J A N U A R Y 3 1 , 2 0 1 8
2013 2014 2015 2016 2017
(1)
. . .
I N V E S T O R P R E S E N T A T I O N
10
Deposit Growth with Branch Consolidation
Strength and Durability of Low-Cost
Deposit Position
• Target average branch size above
$100 million
• Consolidated 15 branches in 2017
• Expect to consolidate 17 branches in 2018
• 16 as a result of Sun Bancorp, Inc.
acquisition
• Deploying Video Teller Machines across
footprint
• Cost of deposits increased 4 bps in 2017 as
compared to the prior year, a deposit beta
of 4% in relation to the change in the
Federal Funds rate from December 2016 to
December 2017
As of December 31, J A N U A R Y 3 1 , 2 0 1 8
To
ta
l D
ep
os
it
s
($
M
ill
io
ns
)
0
10
20
30
40
50
60
70
80
90
100
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2013 2014 2015 2016 2017
Total Deposits Per Branch
Total Deposits Average Deposits Per Branch
A
verage D
eposits Per Branch ($ M
illions)
. . .
I N V E S T O R P R E S E N T A T I O N
11
Loan Composition Shifting Toward Commercial
As of December 31,
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000
2017
2016
2015
2014
Total Loans Outstanding – Mix
Residential Home Equity & Consumer Investor CRE Owner Occupied CRE C&I Loans
• Transition towards commercial lending pre- and post-acquisitions
(in millions)
J A N U A R Y 3 1 , 2 0 1 8
51%
49%
Loans by Customer
Segment - 2017
Consumer Commercial
. . .
0 100 200 300 400 500 600 700 800 900 1000 1100
Peer 1
Peer 2
Peer 3
Peer 4
OceanFirst Bank
Peer 5
Peer 6
Peer 7
Peer 8
Peer 9
Peer 10
Peer Group Average
Peer 11
Peer 12
Peer 13
Peer 14
Peer 15
Peer 16
Peer 17
Peer 18
CRE to Total Risk Based Capital
9/30/2017
I N V E S T O R P R E S E N T A T I O N
12
Conservative CRE Portfolio Reflects
Strategic Execution
Domestic CRE Loans (Construction, Multifamily & Other Nonfarm Non-residential) to Total Risk Based Capital. Supervisory guideline is 300% of TRBC. Peers
include: BMTC, DCOM, EGBN, FCF, FFIC, FISI, FLIC, INDB, LBAI, NFBK, ORIT, PGC, SASR, STBA, TMP, TOWN, UVSP and WSFS. Source: BankRegData.com
As of September 30, 2017 and does not reflect Sun Bancorp acquisition
224
364
Capacity to grow Investor
CRE by $365 million while
remaining under 300%.
J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
13
Generating Consistent Attractive Returns
• Continued focus on improving efficiencies through acquisition synergies and branch
consolidations
0.70%
0.75%
0.80%
0.85%
0.90%
0.95%
1.00%
1.05%
1.10%
2014 2015 2016 2017
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
Re
tu
rn
o
n
Ta
ng
ib
le
C
om
m
on
E
qu
it
y
Return on Tangible Common Equity Return on Assets
As of December 31, 2017
1 For 2015, 2016 and 2017, excludes merger related expenses. For 2016, also excludes Federal Home Loan Bank prepayment fee and loss on sale of
investment securities. For 2017, also excludes the effect of accelerated stock award expense and branch consolidation expense.
J A N U A R Y 3 1 , 2 0 1 8
Return on A
ssets
1 1 1
. . .
I N V E S T O R P R E S E N T A T I O N
14
Credit Metrics Reflect Conservative Culture
N
on
-P
er
fo
rm
in
g
Lo
an
s
as
P
er
ce
nt
o
f T
ot
al
L
oa
ns
R
ec
ei
va
bl
e
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
2014 2015 2016 2017
Non-Performing Loans By Source
Residential Consumer Commercial Real Estate Commercial & Industrial
1 Net charge-off ratio for 2014 excludes charge-off related to bulk sale of non-performing residential and consumer mortgage loans. Including this
charge-off, the ratio is 0.45%.
• Increase in non-performing loans at December 31, 2017 is related to the addition of one large
commercial loan relationship. This borrower made a $3.7 million principal payment in January 2018.
1.06%
0.91%
0.35%
0.52%
Half of the net charge-offs
relate to the sale of three
high risk acquired loan pools
J A N U A R Y 3 1 , 2 0 1 8
0.15% 0.07% 0.15% 0.10% NET CHARGE-OFFS
. . .
Our Strategy
15 J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
16
Asset Growth Supplemented by Strategic M&A
J A N U A R Y 3 1 , 2 0 1 8
Opportunistic Acquisitions of Local Community Banks
Target Closing Date Transaction Value Total Assets
Colonial American Bank July 31, 2015 $ 12 million $ 142 million
Cape Bancorp May 2, 2016 $196 million $1,518 million
Ocean Shore Holding Co. November 30, 2016 $146 million $1,097 million
Sun Bancorp, Inc. (1) January 31, 2018 $487 million $2,256 million
Weighted average(2): Price/Tangible Book Value 155%; Core Deposit Premium 9.2%
1 Data as of merger announcement on June 30, 2017
2 At time of announcement
. . .
I N V E S T O R P R E S E N T A T I O N
17
New Jersey Expansion Opportunities
• New Jersey is a strong market (1)
• Population of 8.9 million
• Most densely populated state
• 11th most populous state
• Median household income of $72,000
• Significant opportunities for acquisitions to build
customer base
• Establishing administrative offices in Red Bank,
NJ, and consolidating 19 operating facilities to
two locations
J A N U A R Y 3 1 , 2 0 1 8
Headquarters
OceanFirst Bank Branches
Sun National Bank Branches
Loan Office
1 US Census Bureau
. . .
I N V E S T O R P R E S E N T A T I O N
18
Regional Opportunities for M&A
Regional banking data as of September 30, 2017
Source: FDIC
New York City Metro Area
• 9 Banks with Assets Between $400M and $1B
• 12 Banks with Assets Between $1B and $10B
J A N U A R Y 3 1 , 2 0 1 8
Philadelphia Area
• 8 Banks with Assets Between $400M and $1B
• 13 Banks with Assets Between $1B and $10B
New Jersey
• 13 Banks with Assets Between $400M and $1B
• 14 Banks with Assets Between $1B and $10B
Headquarters
OceanFirst Bank Branches
Sun National Bank Branches
Loan Office
. . .
I N V E S T O R P R E S E N T A T I O N
19
Data Driven Digital Strategy
• Delivering results that are measurable, repeatable, and scalable, which:
• Increase customer retention
• Increase share of wallet
• Reduce cost to serve
• Anticipate and support evolving customer needs
Digital Offerings
• Website
• Online Banking Platform
• Mobile App
• Bill Pay
• Apple Pay & Android Pay
• U Choose Rewards
• Pop Money
• Text Banking
• Finance Works
• Online Account Opening
• Biometric ID Verification
• Card Valet
As of December 31, 2017
Mobile Deposits
Up 53% in 2017
Mobile
Activations Up
30% in 2017
48% of
Customers Use
Online Banking
65,000+ Monthly
Bills Paid Online
Certified Digital
Banker Training
Launched in 4Q17
65 Retail Staff
Certified Digital
Bankers
J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
20
Protecting Our Clients with Cyber Security
• Remains current with evolving industry-wide
standards
• Real-time analytical tools in place for fraud
protection and firewall security
• Use of top tier, neural-based, real-time debit
card fraud analytics
• Qualified, certified senior InfoSec personnel,
backed up by:
• Ongoing significant investments in technology,
education and training
• Board of Directors with cyber security focus and
expertise
J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
21
Strategic Capital Allocation Generates
Shareholder Returns
• Stable & competitive dividend
• 84th consecutive quarter
• Historical Payout Ratio of 30% to 40%
• 1.8 million shares available for
repurchase
• Strategic acquisitions in critical new
markets
• Total Shareholder Return December
31, 2012 to December 31, 2017 of
120%; CAGR 17%
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2013 2014 2015 2016 2017
Returned Capital to Shareholders
Cash Dividends Share Repurchases
A
nn
ua
l R
et
ur
n
of
C
ap
it
al
($
M
ill
io
ns
)
J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
22
An Experienced Management Team
Executive Title
Years at
OceanFirst
Selected Experience
Christopher D. Maher
Chairman, President,
Chief Executive Officer
4
Patriot National Bancorp
Dime Community Bancshares
Michael J. Fitzpatrick
Executive Vice President,
Chief Financial Officer
25 KPMG
Joseph R. Iantosca
Executive Vice President,
Chief Administrative
Officer
13
BISYS Banking Solutions
Newtrend LLC
Joseph J. Lebel III
Executive Vice President,
Chief Banking Officer
11
Wachovia Bank N.A.
First Fidelity
Steven J. Tsimbinos
Executive Vice President,
General Counsel
7
Thacher Proffit & Wood
Lowenstein Sandler PC
Grace M. Vallacchi
Executive Vice President,
Chief Risk Officer
<1
Office of the Comptroller of the Currency
First Union
First Fidelity
J A N U A R Y 3 1 , 2 0 1 8
. . .
I N V E S T O R P R E S E N T A T I O N
23
OceanFirst Foundation:
Serving Our Communities
• Over $34.8 million has been granted to
organizations serving OceanFirst’s market
• Provided $500,000 in grants dedicated to
assisting our neighbors after Superstorm Sandy
hit the Jersey Shore in 2012
• First foundation established during a mutual
conversion to IPO (July 1996)
• Completed merger of Cape Foundation into
OceanFirst Foundation in 2016 and merger of
Ocean City Home Foundation in 2017
• OceanFirst Foundation has assets of $35 million
J A N U A R Y 3 1 , 2 0 1 8
. . .
Investment Thesis
• Low-Cost and Durable Deposit Base
• Cost of deposits is one of the lowest in the state of New Jersey at 32 basis points, increasing slowly in
response to rising rate environment
• Strength of Assets
• Strong balance sheet underpins flexibility to grow and diversify the business
• Digital Innovation
• Continuous development and investment in direct banking and cyber security initiatives to stay current with
leading industry practices
• Disciplined and Strategic M&A
• Acquired attractive and underappreciated assets in exurban markets at attractive prices
• Bench Strength
• Deep banking, regulatory, M&A, and integration experience
• Conservative Risk Culture
• Effective and efficient commitment to management of credit, interest rate and regulatory / compliance risk
• Insider Ownership
• Substantial insider ownership aligned with shareholder interest
I N V E S T O R P R E S E N T A T I O N
24 J A N U A R Y 3 1 , 2 0 1 8
. . .
Investor Relations Inquiries
Jill A. Hewitt
Senior Vice President, Director of Investor Relations & Corporate Communications
jhewitt@oceanfirst.com
(732) 240-4500, ext. 7513
25 J A N U A R Y 3 1 , 2 0 1 8
. . .
Appendix
26 J A N U A R Y 3 1 , 2 0 1 8
. . .
Colonial American Bank Acquisition
• 100% Stock deal, valued at $11.9 million
• In-Market acquisition supports growth objective in
towns of Middletown and Shrewsbury, NJ
• Favorable financial terms (adjusted for DTA realization
of $2.3 million)
• Price/Tangible Book Value of 104%
• Transaction neutral to OCFC book value
• Price/Core Deposit Premium of 0.4%
• Modest execution risk with conservative
assumptions
• Expected cost saves of 35%, fully realized in 2016
• Gross credit mark of $2.9 million, 2.4% of loans
• Effective execution (2015)
• Announcement – February 25
• Regulatory Approvals - June 17 (68 days following application)
• Shareholder Approval - July 9
• Closing – July 31
• Systems Integration – October 17 (72 days following legal
closing)
I N V E S T O R P R E S E N T A T I O N
27 J A N U A R Y 3 1 , 2 0 1 8
Supports Retail
Expansion in High
Value Communities
Headquarters
OceanFirst Retail Branches,
Commercial Loan Production
Offices, and Wealth
Management Office
Colonial American Retail
Branches
. . .
Cape Bancorp Acquisition
I N V E S T O R P R E S E N T A T I O N
28
• Creates the preeminent New Jersey based community banking franchise
operating throughout central and southern New Jersey
• 85% stock and 15% cash, valued at $196 million
• Favorable financial terms
• Price/Tangible Book Value of 139%
• Price/Core Deposit Premium of 4.4%
• Expected accretion to GAAP EPS of 17% in 2017
• Expected tangible book value dilution of 7.2%, projected earnback
of approximately 3.3 years using the cross-over method and 3.8
years on a simple tangible book value earnback calculation
• Modest execution risk with conservative assumptions
• Expected cost saves of 33%, fully realized by end of 2016
• Expected one-time, pre-tax transaction expenses of
$15.5 million
• Gross credit mark of $25.5 million, 2.3% of loans
• Effective execution (2016)
• Announcement – January 5
• Regulatory Approvals – March 28 (52 days following application)
• Shareholder Approvals – April 25
• Closing – May 2
• Systems Integration – completed October 15
J A N U A R Y 3 1 , 2 0 1 8
Headquarters
OceanFirst Retail Branches,
Commercial Loan Production
Offices, and Wealth
Management Office
Cape Bank Retail Branches
and Commercial Loan Offices
. . .
Ocean Shore Holding Co. Acquisition
• Reinforces OceanFirst as the preeminent New Jersey based community
banking franchise operating throughout central and southern New Jersey
• 80% stock and 20% cash, valued at $181 million
• Favorable financial terms(1)
• Price/Tangible Book Value of 132%
• Price/Core Deposit Premium of 4.9%
• Expected accretion to GAAP EPS of over 5% in 2018
• Expected tangible book value dilution of 3.1%, projected earnback of
approximately 3.7 years using the cross-over method and 4.1 years on a
simple tangible book value earnback calculation
• Modest execution risk with conservative assumptions
• Expected cost saves of 53%, fully realized by end of 2017
• Expected one-time, pre-tax transaction expenses of $19 million
• Gross credit mark of $10.0 million, 1.25% of loans
• Effective execution (2016)
• Announcement – July 13, 2016
• Regulatory Approvals – October 27, 2016 (72 days following application)
• Shareholder Approvals – November 22, 2016
• Closing – November 30, 2016
• Systems Integration – completed May 19, 2017
I N V E S T O R P R E S E N T A T I O N
29
1 At time of announcement
J A N U A R Y 3 1 , 2 0 1 8
OceanFirst Bank Branches
Ocean City Home Bank
Branches
. . .
Sun Bancorp, Inc. Acquisition
• Valued at approximately $487 million
– 85% stock, 15% cash
• Price/Tangible Book Value of 169%
• Price/Core deposit premium of 12.7%
• Financially compelling
• 2019E EPS accretion of 3.6% in
addition to double digit accretion
from Cape and Ocean Shore
acquisitions
• Earnback of approximately 3.5 years
I N V E S T O R P R E S E N T A T I O N
30
Source: SNL Financial.
As of announcement date, June 30, 2017.
J A N U A R Y 3 1 , 2 0 1 8
Sun National Bank has
15 branches
within 3 miles of an
OceanFirst Bank branch
Headquarters
OceanFirst Bank Branches
Sun National Bank Branches
Loan Office
. . .
I N V E S T O R P R E S E N T A T I O N
31
State & Local Tax Sensitivity
• OceanFirst’s exposure to tax law changes is de minimis to overall portfolio size and financial
position
• Impacted Loans 83% CLTV < 70%
90%
7%
3%
Direct Exposure
No Exposure Home Equity Residential Mortgage
% of total loan portfolios (total loans of $3,976mm)
• Home Equity Interest Deduction
Elimination; $281 mm total exposure
• Residential mortgage borrowers with
property taxes in excess of $10,000 -
$128 mm total exposure
• At our current weighted average
expected loss rate, losses on this
exposure would total $2.9 mm
J A N U A R Y 3 1 , 2 0 1 8
. . .
OceanFirst Milestones – 116 Years of Growth
J A N U A R Y | 2 0 1 8
I N V E S T O R P R E S E N T A T I O N
32
1902 1985 1996 1999 2000 2014 2015 2016 2017
Founded,
Point Pleasant, NJ
Established
Commercial Lending
Established
Trust and Asset
Management
Commercial LPO
Expansion into
Mercer County
Announced Merger
Agreement with
Sun Bancorp, Inc.
Colonial American
Bank Acquired
Created OceanFirst
Foundation
IPO to Mutual
Depositors
Branch Expansion
into
Middlesex County
Branch Expansion
into
Monmouth County
OceanFirst Foundation
Exceeds $25 Million in
Cumulative Grants
Cape Bancorp
Acquired
Ocean Shore
Holding Co.
Acquired
Sun Bancorp, Inc.
Acquisition
January 31, 2018
2018
. . .
Favorable Competitive Position
I N V E S T O R P R E S E N T A T I O N
33 J A N U A R Y 3 1 , 2 0 1 8
Institution
# of
Branches
Dep. In Mkt.
($000)
TD Bank (Canada) 127 19,832,103
PNC Bank (PA) 140 18,677,979
Wells Fargo (CA) 140 15,484,506
Bank of America (NC) 122 15,058,444
Santander Bank
(Spain)
80 6,421,883
OceanFirst Bank
# of Branches Dep. In Mkt.
($000)
46 4,198,836
Institution # of Branches
Dep. In Mkt.
($000)
Sun* 30* 1,670,119*
Manasquan 9 1,037,767
Kearny 21 1,007,482
Sturdy Savings 13 690,194
1ST Constitution 15 662,526
Bank of Princeton 8 646,558
Two River 13 634,985
*Merger agreement with OceanFirst announced
June 30, 2017.
OceanFirst
Competitive Position
• Responsive
• Flexible
• Capable
• Lending Limit
• Technology
• Trust
• Cash Management
• Consumer & Commercial
Mega Banks Community Banks
Source: FDIC Summary of Deposits, June 30, 2017
Note: Market area is defined as 11 counties in Central and Southern New Jersey
• Competing Favorably Against Banking Behemoths and Local Community Banks
. . .
Commercial Portfolio Segmentation
I N V E S T O R P R E S E N T A T I O N
34 J A N U A R Y 3 1 , 2 0 1 8 As of December 31, 2017
• Diversified portfolio provides protection against industry-specific credit events
Total Commercial Loan Exposure by
Industry Classification
Office
29.2%
Industrial/
Warehouse
5.3%
Residential
Development
9.8%
Single Purpose
7.6%
Development
6.7%
Shopping Center
12.0%
Retail Store
8.2%
Multi-Family
8.1%
Motel
4.9%
Miscellaneous
8.2%
Real Estate Investment by Property
Classification
Real Estate
Investment
53.9% Construction
4.5%
Retail Trade
6.1%
Wholesale Trade
3.0%
Healthcare
5.9%
Accommodations/F
ood Services
7.6%
Other Services
3.4%
Arts/Entertainment/
Recreation
3.3%
Manufacturing
2.9%
Educational Services
2.4%
Public
Administration
2.0%
Miscellaneous
5.0%