OCFC
. . .
Exhibit 99.1
OceanFirst Financial Corp.
Investor Presentation1
November 2024
1 The 3Q 2024 Investor Presentation should be read in conjunction with the Earnings Release furnished as Exhibit 99.1 to Form 8-K filed with the SEC on October 17, 2024 and the Quarterly Report on Form 10-Q filed with the SEC on October 31, 2024.
Legal.Disclaimer. .
FORWARD LOOKING STATEMENTS.
In addition to historical information, this news release 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, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company's lending area, real estate market values in the Company's lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, changes in New York city rent regulation law, 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, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company's deposit portfolio and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company's market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company's operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, a failure to retain or attract employees, the effect of the Company's rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers 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, 2023, 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.
NON-GAAP FINANCIAL INFORMATION.
This presentation contains certain non-GAAP (generally accepted accounting principles) measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See reconciliations of certain non-GAAP measures included in the Company's Earnings Release furnished as Exhibit 99.1 to Form 8-K as filed with the SEC on October 17, 2024 and the Quarterly Report on Form 10-Qfiled with the SEC on October 31, 2024.
MARKET AND INDUSTRY DATA.
This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. These estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change.
2
Overview. . . of OceanFirst
Corporate Overview and Market Data
Tailored Footprint Across Key Markets
Ticker
OCFC (NASDAQ)
HQ
Red Bank, NJ
Branch Network
39 branches; 8 commercial banking centers
Core Markets
New Jersey, New York City, Greater Philadelphia
Expansion Markets
Boston and Baltimore
Balance Sheet and Capital (Q3-24)
Core Profitability (Q3-24)2
Assets
$13.5 billion
Net Income
$23.2 million
Net Loans
$10.0 billion
EPS
$0.39
Deposits
$10.1 billion
Net Interest Margin (%)3
2.65%
Non-performing Loans / Loans1
0.25%
Efficiency Ratio (%)
66.0%
Tang. Equity / Tang. Assets2
9.1%
ROAA (%)
0.69%
CET1 Ratio
11.3%
ROTCE (%)
8.2%
Q3-24 Loan Portfolio ($'millions)
Q3-24 Deposit Base ($'millions)
Home Eq. & Consumer
Non-interest
$243
Time deposits
Residential
$2,221
$1,638
$3,003
$5,273 CRE Investor
Savings $1,072
Owned
$3,896
$661
$1,289
C&I
$842
Interest-bearing
Money market
CRE Owner Occupied
Commercial Banking Centers
Retail Branches
3
Note:All data presented is as of September 30, 2024.
(1)
PCD loans are not included in these metrics.
(2)
For non-GAAP financial measures, please refer to the 'Non-GAAP Reconciliations' in the Appendices for a reconciliation to GAAP financial information.
(3)
Core NIM excludes purchase accounting and prepayment fee income. Refer to the Earnings Release for additional information.
Proven. . .Historical Net Interest Income and Loan Growth
Peer Leading Net Interest Income Growth ($'000)
3.52%
3.71%
3.62%
3.46%
3.37%
3.25%
3.16%
3.02%
2.93%
334,885
2.73%
312,951
305,338
377,477
369,731
240,502
255,971
250,706
169,218
120,262
76,829
2015
2016
2017
2018
2019
2020
2021
2022
2023
YTD Sep-24
Net Interest Margin
YTD Sept-24 Annualized
Net Interest Income
Significant Growth in Commercial Loan Portfolio ($'millions)
9,918
10,195
10,022
251
243
8,623
264
7,756
261
2,862
2,980
3,003
6,214
339
2,480
5,589
2,309
1,610
1,503
408
1,620
475
1,504
3,817
3,975
2,321
1,616
2,045
281
291
1,988
1,749
1,189
5,354
1,704
1,046
4,378
5,172
5,273
831
193
687
758
2,296
3,492
2,023
453
1,135
1,187
511
2015
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
4
Home Equity & Consumer
Residential
Owner Occupied CRE & C&I
Investor CRE
20%
Net Interest
Income CAGR
15%
Owner Occupied
CRE / C&I CAGR
31%
Investor CRE
CAGR
Successful. . . Commercial Loan Growth and Geographic Diversification
Commercial Loans by Geography1 as of Q3-24
Boston & Baltimore
8%
Philadelphia
24%
38% New Jersey
Total: $6.8B
30%
New York
Emphasis on Commercial
(Commercial % of Loan Portfolio)
+19%
68%
49%
2015Q3-24
Increase of $5.8B
in commercial
loans since 2015
5
Balanced. . . Approach to Deposit Pricing and Growth
Deposit Composition ($'millions)
9,733
9,675
10,435
10,116
9,428
1,657
1,638
2,412
2,101
2,133
5,815
6,329
3,912
3,896
1,377
3,830
4,188
4,343
1,151
3,647
4,202
1,022
783
757
2,539
1,289
2,350
784
714
1,399
1,917
1,627
1,954
736
1,072
1,488
578
1,491
337
570
1,608
459
153
364
860
673
661
877
898
1,542
2,445
2,221
1,373
256
311
867
937
775
607
646
2015
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
Non-interest-bearing deposits
Interest-bearing deposits
Money Market
Savings
Time deposits
Strong Deposit Growth ($'millions)
9,428
9,733
9,675
10,435
10,116
1,894
5,815
6,329
4,343
449
1,616
4,188
1,917
2,123
123
2015
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
6
Acquired Deposits
Organic Deposits
Deposit Stratification
47% Total: $10.1B 53%
Commercial Consumer
Conservative. . . Credit Risk Profile
Non-performing Loans by Type as % of Loans1
Continued Focus on Credit Risk1
0.89
0.52%
0.85
0.01%
0.47%
0.75
0.02%
0.73
0.69
0.35%
0.60
0.85
0.73
0.64
0.64
0.62
0.01%
0.36%
0.31%
0.54%
0.08%
0.29%
0.03%
0.30%
0.00%
0.26%
0.25%
0.00%
0.52
0.05%
0.10%
0.12%
0.22%
0.00%
0.45%
0.00%
0.19%
0.00%
0.14%
0.05%
0.12%
0.19%
0.35
0.31
0.04%
0.05%
0.03%
0.11%
0.59
0.50
0.47
0.44
0.40
0.32%
0.29
0.53
0.47
0.38
0.21%
0.02%
0.02%
0.11%
0.13%
0.12%
0.11%
0.02%
0.02%
0.25%
0.09%
0.07%
0.06%
0.05%
0.22
0.22%
0.19
0.15%
0.16%
0.26 0.25
0.19% 0.19%
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
Commercial & Industrial
Commercial Real Estate
Consumer
Residential
NPA/Assets
Peer Average NPA/Assets
NPL/Loans
Peer Average NPL/Loans
(1) PCD loans are not included in these metrics. Refer to "Asset Quality" section in the Earnings Release for additional information.
7
Operational. . . Efficiency
Operating Efficiency ($'millions)
Deposits per Branch ($'millions)
Assets per Branch
Assets per FTE
400
350
300
250
200
150
345
347
346
13250
13
14
14
12
100
8
9
9
185
7
7
118
127
147
50
96
85
0
20
18
16
14
12
10
8
6
4
2
0
3.6x
152
113
94 99
71 69
268
255259
207
2015 201616 20177 2018018 20192
20200 2021 20222 20233 Q3--2424
2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3-24
Annualized Core Non-interest Expense1 to Total Avg. Assets
Q3-24
2015
(55) bps
1.79%
2.39%
8
(1) For non-GAAP financial measures, please refer to the 'Non-GAAP Reconciliations' in the Appendices for a reconciliation to GAAP financial information.
Business. . . Model Strength Driving Significant Capital Return
Growth Since 2013
Tangible Book Value per Share 1
56.4%
Total Capital Return per Share
139.9%
$20.55
$1.97
$18.42
$16.82
$1.39
$3.45
$13.95
$15.62
$15.53
$1.09
$2.77
$0.55
$0.94
$1.04
$2.15
$0.49
$1.01
$1.55
$12.33
$29.58
$27.68 $3.35
$25.61 $2.98
$23.60 $2.98
$6.95
$21.36
$2.86
$6.35
$2.25
$5.55
$4.81
$4.13
The growth in TBV per common share (TBVPCS1) is attributed to:
▪ Minimally dilutive and strategic
acquisitions in critical new markets
▪ Stable and competitive dividend
▪ 111th consecutive quarter
▪ Historical Payout Ratio of 30%
to 40%
▪ Repurchased 87,324 shares in Q3-24
$15.13
$14.26
$13.67
$13.58
$12.91
$12.94
$14.98
$15.93
$18.35
$17.08
$19.28
▪ 1.6 million shares available to be
repurchased
▪ Total repurchases of 1,383,238
shares in YTD Sep-24.
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Q3-24
Cumulative Share Repurchase/Share Cumulative Dividends/Share TBVPCS
9
I N V E S T O R P R E S E N T A T I O N
. . .
Quarterly Earnings Update
10
Disclaimer
OceanFirst Financial Corporation published this content on November 11, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 11, 2024 at 19:53:04.570.