![]() NASDAQ: OCFC 1 OceanFirst OceanFirst Financial Corp. Financial Corp. John John R. R. Garbarino Garbarino - - Chairman, Chairman, CEO CEO Michael Michael J. J. Fitzpatrick Fitzpatrick - - Executive Executive Vice Vice President, President, CFO CFO STERNE AGEE STERNE AGEE FINANCIAL INSTITUTION INVESTOR CONFERENCE FINANCIAL INSTITUTION INVESTOR CONFERENCE FEBRUARY 2011 FEBRUARY 2011 Exhibit 99.1 |
![]() NASDAQ: OCFC 2 OceanFirst OceanFirst Financial Corp. 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 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 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 in 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 – 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. |
![]() NASDAQ: OCFC 3 Our 108-Year History 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 4 # # # # # ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( ! ( 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 - $2.3 billion in assets and 23 branch offices Market Cap $259.0 million (as of February 11, 2011) Core deposit funded – 82.9% of 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 Corporate Profile Philadelphia New York Note: See Appendix 1 for Market Demographic information. |
![]() NASDAQ: OCFC 5 Experienced Executive Management Team Experienced Executive Management Team Insider ownership of 28.0% is substantial – aligned with shareholders 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 39 39 Vito R. Nardelli President, Chief Operating Officer 36 6 Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 29 18 |
![]() NASDAQ: OCFC 6 Our Strategy 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 in 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 7 Highlights –2010 Highlights –2010 Record $20.4 million of net income for 2010 Total revenue (i.e., net interest income and total other income) of $92.4 million for 2010 also set a record for the Company, an increase of 14.0% over 2009 Diluted earnings per share year-over-year increased 14.3% to $1.12. Return on average stockholders’ equity was 10.6% for 2010 Core deposits (i.e., all deposits excluding time deposits) increased 31.1%, $326.8 million for the year, and now comprise 82.9% of total deposits Strong capital position, tangible common equity of 8.9% of assets |
![]() NASDAQ: OCFC 8 Increasing Primary Market Deposit Share Increasing Primary Market Deposit Share June 30, 2010 # of Dep. In Mkt. Mkt. Shr. Rank Institution Branches ($000) (%) Ocean County, NJ 1 Hudson City Bancorp Inc. (NJ) 13 2,773,130 21.66 2 Wells Fargo & Co. (CA) 27 1,810,777 14.14 3 TD Bank National Association (Canada) 20 1,776,218 13.87 4 OceanFirst Financial Corp. (NJ) 18 1,282,436 10.02 5 Banco Santander S.A. (Spain) 25 1,254,237 9.80 6 Bank of America Corp. (NC) 23 1,234,572 9.64 7 Investors Bancorp Inc. (MHC) (NJ) 7 637,788 4.98 8 PNC Financial Services Group (PA) 12 420,227 3.28 9 Sun Bancorp Inc. (NJ) 6 235,558 1.84 10 Manasquan Savings Bank (NJ) 3 225,540 1.76 Total For Institutions In Market 191 12,803,921 Source: FDIC Moving from 6 th to 4 th in Last Year |
![]() NASDAQ: OCFC 9 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 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, 55.3% Non-Interest Bearing Demand Deposits, 7.6% Jumbo Time Deposits(1), 4.3% Retail Time Deposits, 12.8% MMDA & Savings, 20.0% (1) Jumbo CDs have a balance of $100,000 or greater. December 31, 2005 December 31, 2010 December 31, 1996 |
![]() NASDAQ: OCFC 10 Commercial R.E., 25.8% Residential R.E., 56.6% Commercial & Industrial, 4.6% Construction R.E., 0.8% Consumer & Other(1), 12.2% Loan Composition Transition 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 December 31, 2010 December 31, 1996 |
![]() NASDAQ: OCFC 11 NPL’s in a Diversified Portfolio NPL’s in a Diversified Portfolio Non-performing loan (“NPL”). Data as of December 31. 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2008 2009 2010 One-to-Four Family Consumer Commercial Real Estate and Construction Commercial Stable Commercial Credit Quality |
![]() NASDAQ: OCFC 12 Provision for Loan Losses Exceed Charge-Offs Provision for Loan Losses Exceed Charge-Offs Building ALLL $0 $2,000 $4,000 $6,000 $8,000 $10,000 12/31/08 12/31/09 12/31/10 Net Charge-Offs Provision for Loan Losses Year-Ended |
![]() NASDAQ: OCFC 13 Quarterly Residential Delinquency Trends Quarterly Residential Delinquency Trends OceanFirst Well Below Benchmarks 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 14 Net Interest Margin Net Interest Margin Expansion has Run its Course – for Now 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 2008 2009 2010 |
![]() NASDAQ: OCFC 15 Diversified Streams of Non-Interest Income Diversified Streams of Non-Interest Income $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 2008 2009 2010 Deposit Fees Gain on Sale of Loans Merchant Services Investment Services Trust BOLI Other 70 bps. of 2010 Average Assets |
![]() NASDAQ: OCFC 16 Delivering Double-Digit Return on Equity 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 |
![]() NASDAQ: OCFC 17 Challenge Today is to Grow Revenue Challenge Today is to Grow Revenue Build Shareholder Value Build Shareholder Value Business Plan targets growth within existing footprint – increasing market share Twelve new branches since 2000 have performed well – still present room for growth Non-interest income streams have been diversified – offering significant growth – more important as margin expansion struggles in the near term Opportunistic roll-up of smaller community banks in market Financial performance to Plan earns OceanFirst the right to remain independent |
![]() NASDAQ: OCFC 18 ¹ Peers include: ALNC, CNBC, DCOM, FFIC, HUVL, LBAI, PBNY, PGC, SMTB, STBC, STL, SUBK, and TRST Note: Financial data for the period ended December 31, 2010. Share price as of February 11, 2011. Source: Sandler O’Neill. Attractive Valuation Metrics Attractive Valuation Metrics OCFC Peers¹ Valuation Price / Tang. Book Value 129% 152% Price / LQA EPS 10.8x 13.4x Price / Estimated EPS 12.4x 13.2x Cash Dividend Yield 3.49% 2.81% |
![]() NASDAQ: OCFC 19 Why 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 20 THANK YOU THANK YOU FOR YOUR INTEREST IN FOR YOUR INTEREST IN OCEANFIRST FINANCIAL CORP. OCEANFIRST FINANCIAL CORP. |
![]() NASDAQ: OCFC 21 Market Demographics Market Demographics APPENDIX 1 Ocean Monmouth Middlesex New Jersey National Number of Offices 18 4 1 % of OceanFirst Deposits 83.3 13.4 3.3 Market Rank 4 17 34 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 22 One-to-Four Family Loans Average size of mortgage loans $186,000 Interest-only loans - Amount $80.1 million - Percent of total one-to-four family loans 8.4% Stated income loans - Amount $62.7 million - Percent of total one-to-four family loans 6.6% Portfolio weighted average loan-to-value ratio (using original appraisal) 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 year ended December 31, 2010 60% Average FICO score 746 Average FICO score of loans originated for the year ended December 31, 2009 756 Average FICO score of loans originated for the year ended December 31, 2010 764 Percent of jumbo loans at origination 45.7% Percent of loans outside the New York/New Jersey market 6.1% Percent of loans for second homes 7.5% APPENDIX 2 Residential Portfolio Metrics Residential Portfolio Metrics As of December 31, 2010, unless otherwise noted. |
![]() NASDAQ: OCFC 23 Commercial Real Estate Average size of commercial real estate loans $711,000 Largest commercial real estate loan $13.6 million Commercial Loans Average size of commercial loan $277,000 Largest commercial loan $16.5 million APPENDIX 2 (Cont’d) Commercial Portfolio Metrics Commercial Portfolio Metrics As of December 31, 2010. |
![]() NASDAQ: OCFC 24 Commercial Portfolio Segmentation Commercial Portfolio Segmentation Construction, 8.2% Retail Trade, 4.3% Miscellaneous, 11.6% Healthcare, 6.3% Accommodations/ Food Services, 6.6% Wholesale Trade, 7.2% Arts/Entertainment/ Recreation, 9.1% Manufacturing, 5.4% Real Estate Investment, 32.6% Educational Services, 4.1% Other Services, 4.6% Total Commercial Loan Exposure by Industry Concentration Real Estate Investment by Property Concentration Office, 31.3% Multi-Family, 8.5% Land, 4.7% Commercial Development, 4.1% Residential Development, 8.0% Miscellaneous, 10.9% Retail Store, 6.5% Industrial/ Warehouse, 14.7% Shopping Center, 11.3% As of December 31, 2010. APPENDIX 2 (Cont’d) |