OceanFirst Financial (OCFC) 8-K Regulation FD Disclosure

NASDAQ: OCFC

1

OceanFirst Financial Corp.

INVESTOR PRESENTATION

NOVEMBER  2014

Exhibit 99.1

NASDAQ: OCFC

2

OceanFirst Financial Corp.

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,"

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

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,

2013

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.

NASDAQ: OCFC

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112 Years of Growth and Capital Management

112 Years of Growth and Capital Management

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.

Rebuilt capital from 6.05% to 9.47% through the Great Recession with retained earnings and

completion of a follow-on common stock offering in November 2009.

Demutualized in 1996 and over the ensuing 11 years generated value for shareholders,  largely

through the successful implementation and execution of our community bank model, and the

strategic repurchase of 62.4% of original IPO shares.

Since late 2011, the Company has utilized share repurchases to again strategically redeploy surplus

capital until growth prospects improved.  Current repurchase authorization for 835,059 shares in

place until growth initiatives mature.

NASDAQ: OCFC

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Community Bank serving the Central

Jersey Shore -

$2.3 billion in assets and

23 branch offices

Targeting growth opportunities in

Monmouth County

Market Cap $287 million

Core deposits –

88.1%

of total deposits

Locally originated loan portfolio -

no

SNCs

C&I loans and lines

Residential and commercial         

real estate mortgages

Consumer equity loans and lines

Corporate Profile

Corporate Profile

Note:  See Appendix 1 for Market Demographic information.

NASDAQ: OCFC

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Experienced Executive Management Team

Experienced Executive Management Team

Substantial insider ownership of 27.4% –

aligned with shareholders’

interests

OceanFirst Bank ESOP 10.5%

Directors & Senior Executive Officers 9.8% (CEO 5.7%)

OceanFirst Foundation 7.1%

Succession planning affirmed –

Christopher D. Maher named as successor

CEO effective January 1, 2015

As of the March 11, 2014 proxy

record date.

Name

Position

# of Years in

Banking

# of Years

at OCFC

John R. Garbarino

Chairman, Chief Executive Officer

43

43

Christopher D. Maher

President, Chief Operating Officer

26

1

Michael J. Fitzpatrick

Executive Vice President, Chief Financial Officer

33

22

Joseph R. Iantosca

Executive Vice President, Chief Administrative Officer

36

10

Joseph J. Lebel III

Executive Vice President, Chief Lending Officer

30

8

Director and Proxy Officer Stock Ownership Guidelines

NASDAQ: OCFC

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Our Strategy

Our Strategy

Positioned as the leading Community Bank in attractive Central

Jersey Shore market –

developing the franchise, growing revenue

and creating additional value for shareholders

Strategically focused on revenue growth in commercial lending,

wealth management, and bankcard services

Guarding credit quality in ALL

business cycles

Growing diversified streams of non-interest income to decrease

reliance on Net Interest Margin (NIM)

Creating attractive profile to encourage roll-up opportunities

presented by local community banks lacking the scale or desire to

remain independent

NASDAQ: OCFC

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Significant Primary Market Deposit Share

Significant Primary Market Deposit Share

Competing Favorably Against Banking Behemoths

# of

Dep. In Mkt.

Mkt. Shr.

Rank

Institution

Branches

($000)

(%)

Ocean County, NJ

1

TD Bank, National Association (Canada)

22

2,541,705

17.45

2

Hudson City Bancorp Inc. (NJ)

(1)

14

2,212,695

15.19

3

Wells Fargo Bank NA (CA)

26

2,203,005

15.13

4

OceanFirst Financial Corp. (NJ)

19

1,480,885

10.17

5

Banco Santander S.A. (Spain)

21

1,368,640

9.40

6

Bank of America Corp. (NC)

17

1,267,176

8.70

Total For Institutions In Market

188

14,563,013

Source:  FDIC Summary of Deposits, June 30, 2014

(1)

Pending acquisition by M&T Bank (NY)

NASDAQ: OCFC

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Strategic Deposit Composition Transition

Strategic Deposit Composition Transition

*Time deposit duration of 18 months

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Strategic Loan Composition Transition

Strategic Loan Composition Transition

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Increased the quarterly dividend by $0.01, or 8.3%, to $0.13 per

share, 42% payout ratio

Non-performing loans decreased $22.3 million, or 54.8%

Grew

commercial

loan

portfolio

$27.2

million,

16.7%

annualized;

5

consecutive quarter of growth

Earnings per share of $0.31, 9.5% ROE & 0.88% ROA

Net interest margin stable at 3.27%

Tangible common equity of 9.5% of assets

Common stock repurchase plan in place to strategically manage

capital levels

Highlights –

Highlights –

Third Quarter 2014

Third Quarter 2014

th

NASDAQ: OCFC

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For the nine months ended September 30, 2014:

Interest Rate Risk Management

Extended $150 million of FHLB advances into 3 –

5 year terms

$70 million of retail checking migrated to non-interest bearing

Core deposits

(1)

are 88.1% of total deposits, a significant benefit in a

rising rate environment

Asset Quality Improvements

Non-performing loans decreased by 59%, or $27.0 million, to $18.4

million at September 30, 2014

Credit metrics improved as non-performing loans as a percent of total

loans receivable decreased to 1.11% from 2.88%, and Allowance for

Loan Losses as a percent of total non-performing loans increased to

88.68% from 51.44%

(1)  Core deposits are all deposits except time deposits.

Highlights –

Highlights –

Risk Management

Risk Management

NASDAQ: OCFC

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Credit Metrics Reflect Conservative Culture

Credit Metrics Reflect Conservative Culture

Data as of December 31, unless otherwise indicated.

Increase attributable to Superstorm Sandy.

Decrease due to bulk sale of most  non-performing residential and consumer mortgage loans.  Net charge-off percent is 0.12% excluding

charge-offs related to the bulk sale.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2009

2010

2011

2012

2013

9/30/2014

Residential

Consumer

Commercial Real Estate

Commercial

(1)

(2)

Note:  Atlantic County Loan Exposure totals $14.4 million, or 0.9%, of total loan portfolio as of September 30, 2014.

Net charge-offs as percent of

average loans outstanding

(annualized for 2014)

0.16%

0.18%

0.57%

0.36%

0.16%

0.54%

(1)

(2)

NASDAQ: OCFC

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Prudently Provisioning for Credit Costs

Prudently Provisioning for Credit Costs

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

Net Charge-Offs

Net Charge-Offs Attributable to Bulk Sale of NPL's

Provision for Loan Losses

(1)

Spike in charge-offs was due to a change in charge-off policy to recognize the charge-off when the loan is deemed uncollectible

rather than when the foreclosure process is complete.  The additional charge-off relating to the change in policy through 2011 was

$5.7 million, all of which had been previously specifically reserved.

(2)

Increase attributable to Superstorm Sandy.

12/31/09

12/31/10

12/31/11

(1)

12/31/12

(2)

12/31/13

9/30/14

(Nine Months)

NASDAQ: OCFC

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Net Interest Margin

Net Interest Margin

Stabilizing Close to Historical Levels

Quarterly

Trend

Historical Average Net Interest Margin (3.28%)

NASDAQ: OCFC

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Diversified Streams of Non-Interest Income

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%

0.90%

1996

9/30/2014 (Annualized)

Fees and Service Charges

Gain on Sale of Loans

BOLI

Other

BankCard Services

Investment Services

Wealth Management

Non-Interest Income excludes gain/loss from other real estate operations, gain on sale of securities and provision for repurchased

loans.

$2.5M

$17.6M

Targeted

Growth

Areas

NASDAQ: OCFC

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Generating Consistent Attractive Returns

Generating Consistent Attractive Returns

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2009

2010

2011

2012

2013

9/30/2014

(Annualized)

Return on Equity

Return on Assets

0.0%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

(1)

(1)

Excludes

after-tax

impact

of

$3.1

million

in

non-recurring

charges

related

to

strategic

advance

restructuring

and

branch

consolidation.

NASDAQ: OCFC

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Prudently Managing Excess Capital in Near Term

Prudently Managing Excess Capital in Near Term

2011

Notes:

Stock

Repurchases

–

$14.77

Average

Cost

per

Share.

Quarterly

dividend

rate

increased

by

$0.01,

or

8.3%,

in

October

2014.

Cash

Dividends

Stock Repurchases

NASDAQ: OCFC

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Challenge Today is to Grow Revenue

Challenge Today is to Grow Revenue

Build Shareholder Value

Build Shareholder Value

Target

growth

within

existing

market

–

increasing

share

Commercial loans increase at double digit growth rate for five consecutive quarters

Superstorm Sandy recovery providing market opportunity*

Continuing Strategic Execution

Sold most non-performing residential/consumer mortgage loans in third quarter of 2014; $500,000 in

annual cost savings

FHLB Advances restructured in fourth quarter 2013; duration extended to 38 months

Rationalizing Branch Network and Residential Lending, reinvesting cost saves supporting growth

Consolidated two overlapping branches at the end of 2013

Reduced residential lending overhead in second quarter 2014 to improve efficiency

Sold servicing rights on loans serviced for FNMA/FHLMC in October 2014, recognizing a small gain and lowering costs

in 2015 (net of lost servicing revenue)

Diversifying and strengthening non-interest income streams; reducing reliance on NIM

Assessing opportunistic roll-up of local community banks

Financial performance develops value proposition for shareholders and preserves the          

right to remain independent

*Note:  See Appendix 4.

NASDAQ: OCFC

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Why OCFC…?

Why OCFC…?

Fundamental franchise value –

superior market demographics

Seasoned and effective management team

Sandy response and experience

Substantial

insider

ownership

–

aligned

with

shareholders’

interests

Succession

planning

affirmed

–

2014

Attractive deposit mix and market share

Conservative credit culture and profile

Solid

financial

performance

–

developing

shareholder

value

Strong balance sheet and capital base

NASDAQ: OCFC

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Attractive Valuation Metrics

Attractive Valuation Metrics

OCFC

Peers

(1)

Valuation

Price / Tang. Book Value

129%

154%

Price / LQA EPS

13.3x

14.1x

Price / Estimated EPS

12.5x

13.5x

Cash Dividend Yield

3.1%

2.9%

1)

Peers include:  DCOM, FFIC, FLIC, HVB, LBAI, ORIT, PGC, SNBC, SUBK, UVSP and WSFS

Note: Financial data as of the most recent period available; market data as of November 7, 2014.

Source:  Sandler O’Neill

NASDAQ: OCFC

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THANK YOU

FOR YOUR INTEREST IN

OCEANFIRST FINANCIAL CORP.

NASDAQ: OCFC

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Market Demographics

Market Demographics

APPENDIX 1

Ocean

Monmouth

Middlesex

New Jersey

National

Number of Offices

19

4

1

% of OceanFirst Deposits

86.2

10.9

2.9

Market Rank

4

17

35

Market Share (%)

10.2

0.9

0.2

Population

583,000

628,000

831,000

Projected 2014-2019

Population Growth (%)

1.4

—

3.0

1.6

3.5

Median Household Income ($)

58,000

81,000

75,000

69,000

52,000

Projected 2014-2019 Median

Household Income Growth (%)

2.6

3.1

3.5

3.6

4.6

Deposit  and demographic data as of June 30, 2014.

Source:  SNL Financial

NASDAQ: OCFC

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APPENDIX 2

Commercial Portfolio Metrics

Commercial Portfolio Metrics

As of September 30, 2014.

(1)

Combined commercial relationships (excluding small business) total 438.

Commercial Real Estate (CRE)

Total portfolio

(1)

$599.9 million

% of Total Loan Portfolio

36.1%

Average size of CRE loans

$840,000

Largest CRE loan

$14.9 million

Current Pipeline

$37.4 million

Weighted Average Yield

4.42%

Weighted Average Repricing Term

6.2 years

Commercial Loans

Total portfolio

(1)

$79.6 million

% of Total Loan Portfolio

4.8%

Average size of commercial loan

$303,000

Largest commercial loan

$10.0 million

Current Pipeline

$5.0 million

Weighted Average Yield

4.21%

Weighted Average Repricing Term

1.9 years

NASDAQ: OCFC

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Commercial Portfolio Segmentation

Commercial Portfolio Segmentation

Total Commercial Loan Exposure

by Industry Classification

Real Estate Investment by

Property Classification

As of September 30, 2014.

APPENDIX 2

(Cont’d)

Diversified portfolio provides

protection against industry-

specific credit events.

NASDAQ: OCFC

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Residential Real Estate

Total Portfolio

$782.8

million

% of Total Loan Portfolio

47.1%

Average size of mortgage loans

$191,000

Interest-only loans 

$19.0 million

         - % of total 1-4 family loans

2.5%

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

59%

Stated income loans 

$27.8 million

         - % of total 1-4 family loans

3.7%

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

56%

         - Loans originated during 2014

62%

Portfolio average FICO score 

752

         - Loans originated during 2014

761

% of loans outside the New York/New Jersey market

3.6%

% of loans outside Ocean/Monmouth Counties

28.2%

% of loans exceeding agency conforming amounts

44.8%

% of loans for second homes

9.0%

APPENDIX 3

Residential Portfolio Metrics

Residential Portfolio Metrics

As of September 30, 2014, unless

otherwise noted.

NASDAQ: OCFC

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Superstorm Sandy Recovery

Superstorm Sandy Recovery

Loan Portfolio Performed Well

Net Charge-offs related to Superstorm Sandy total a modest $424,000

Damage Estimate ( FEMA 2012):

50,103 structures damaged were located in Monmouth and Ocean County

3,033 structures classified as major damage or totally destroyed

Multi-Year Recovery Horizon

4,307

Homes

demolished

in

Monmouth

and

Ocean

in

2013;

59%

of

New

Jersey

total

Toms River specifically

1,108 homes demolished in 2013 (of 30,235 Single Family Homes)

609 permits for $89.6 million issued in the first nine months of 2014

Construction Lending*

$34.2 million in consumer originated/committed in first nine months of 2014; $14.2 million    

cumulative undrawn

$21.7 million in commercial originated/committed in first nine months of 2014; $32.2  million

cumulative undrawn

$24.1 million pipeline

* Construction lending has been driven by owner-occupied projects resulting from storm damage

APPENDIX 4