Investor Presentation
May 2017
OceanFirst Financial Corp.
Exhibit 99.1
OceanFirst Financial Corp.
Forward-Looking Statements
In addition to historical information, the Form 10-K 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 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, those items discussed under Item 1A. Risk Factors herein and the following: 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 FRB, 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 should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such statements. These risks and
uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2016 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.
2
OceanFirst Milestones – 115 Years of Growth
3
Serving Central and Southern New Jersey Markets
• OceanFirst is the largest Bank
headquartered in Central and
Southern New Jersey
• $5.2 billion in assets
• Branches located in 7 counties
• Market Cap $908 million
• Average Daily Share Volume of
146,000
OceanFirst Headquarters
OceanFirst Retail Branches,
Commercial Loan Production Offices,
and Wealth Management Office
30 million people, or approximately
10% of the total U.S. population,
reside within a 2-hour drive* and
7.3 million reside in market area**
4
*Includes New York – Newark NY-NJ-PA-CT CSA and
Philadelphia – Reading – Camden CSA.
**Refer to Appendix 2 for market area.
5
Atlantic City is 1.16% of the OceanFirst
Loan portfolio
OceanFirst Loan Portfolio Diversification by Geography
Least
Concentrated
Most
Concentrated
Experienced Leadership
Name
Position
# of Years
at OCFC
# of Years
In Banking
Previous
Experience
Christopher D. Maher Chairman, President, Chief Executive Officer 4 29
Patriot National Bancorp; Dime
Community Bancshares
Michael J. Fitzpatrick Executive Vice President, Chief Financial Officer 24 35 KPMG
Joseph R. Iantosca Executive Vice President, Chief Administrative Officer 13 39
BISYS Banking Solutions; Newtrend
LLC; Brooklyn Federal Savings
Joseph J. Lebel III Executive Vice President, Chief Banking Officer 11 33
Wachovia Bank N.A.;
First Fidelity
Steven J. Tsimbinos Executive Vice President, General Counsel 6 22
Thacher Proffit & Wood;
Lowenstein Sandler PC
• Substantial insider ownership of 15.3% – aligned with shareholders’ interests
OceanFirst Bank ESOP 4.6%
Directors & Senior Executive Officers 6.7%
Director and Proxy Officer Stock Ownership Guidelines
OceanFirst Foundation 4.0%
From April 28, 2017 Proxy Statement and SEC Schedule 13G filings.
6
Deep Bench of Experienced Executives
Name
Position
# of Years
at OCFC
# of Years
In Banking
Previous
Experience
Gary S. Hett First Senior Vice President, Director of Human Resources 3 43
Patriot National
Bancorp;
Dime Community
Bancshares
David R. Howard First Senior Vice President, Direct Banking 3 26
Guggenheim
Partners;
GE Capital
Margaret Lanning First Senior Vice President, Chief Credit Officer 2 38
Wells Fargo Bank,
N.A.;
Wachovia Bank
Angela Ho Senior Vice President, Principal Accounting Officer - 10
Northfield Bank;
Signature Bank;
KPMG
Gayle S. Hoffman Senior Vice President, Chief Risk Officer 3 19
Rumson-Fair Haven
Bank & Trust;
Amboy Bank;
KPMG
7
Strategic Focus
8
I. Organic Commercial Loan and Core Deposit Growth
• Grew commercial loans (excluding acquired loans) from $533 million at
December 31, 2012 to $945 million at March 31, 2017, 14% CAGR
• Grew low cost core deposits (excluding acquired deposits) from $1,493 million
(0.15% cost) at December 31, 2012 to $1,784 million (0.14% total cost for all core
deposits) at March 31, 2017
II. 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
Weighted average(1): Price/Tangible Book Value 135%; Core Deposit Premium 4.5%
(1)At time of announcement.
Strategic Focus (Continued)
9
III. Conservative Risk Management
• Credit Risk
Reduced non-performing loans from $43.4 million (2.8% of loans) at December 31, 2012 to
$21.7 million (0.56% of loans) at March 31, 2017
Strong credit culture – experienced and independent credit administration, resulting in
nominal loss history (Net charge-offs over past four years averaged 13.5 basis points)
• Interest Rate Risk
Core deposits (all deposits except time deposits) are 85.0% of total deposits at March 31,
2017
Grew core deposits (excluding acquisitions) by $170 million in 2016, or 10.2%
• Regulatory/Compliance Risk
Regulatory approvals received for three acquisitions in a timely manner
Outstanding CRA rating received October 2015
Total Shareholder Return December 31, 2012 to March 31, 2017 –
132%, 21.9% CAGR
Strategic Focus (Continued)
10
IV. Direct Banking Initiative
• Current suite of digital offerings is at top of market for community banks
Website Apple Pay Finance Works
Online Banking Platform U Choose Rewards Online Account Opening
Mobile Application Pop Money Biometric ID Verification
Bill Pay Text Banking Card Valet
• Focused effort to transform customer usage to efficient channels
Enhancing branch staff training and goals specific to digital capabilities
One-on-one training and videos with customers on mobile and online tools
Upgrading account opening capabilities will enable staff outside the physical branch
Expanding use of video tellers to support in-person transactions in a more efficient manner
than traditionally staffed branches
Ensuring our digital capabilities remain top of market and meet customer expectations
• Increased digital usage will result in increased efficiency and customer retention
Especially important with acquisitions, conversions, and branch consolidations
Seamless customer experience will reinforce established OceanFirst brand
Strategic Focus (Continued)
11
V. Transition of Branch Service Area Model
• Currently 61 branches with an average branch size of < $70MM
• Approved consolidations in 2017 – 15 branches
Results in 46 branches with an average size of >$90MM
• Target average branch size >$100MM
• Will continue to place non-branch electronic service facilities in strategic locations
that would not support a fully-staffed branch
• Expense savings from these 15 branches
Total Annualized = $6.1MM
Presumed in Ocean City Home Acquisition Model – 10 branches = $3.6MM
Incremental Annual Savings – 5 branches = $2.5MM
o Approximately 50% ($1.25MM) to be deployed in direct banking and commercial initiatives
Highlights – 2017
12
First Quarter
• Core EPS of $0.40(1), a 25% increase from $0.32(1) in Q1 2016
12.56% ROTE(1)(2) & 1.02% ROA(1)(2)
Net interest margin was 3.56% in Q1 2017, an increase from 3.34% in Q1 2016
• Strong deposit funding with a loan to deposit ratio of 91.1% and a cost of
deposits of just 0.28% at March 31, 2017
• The Company announced the authorization of the Board to repurchase 5%
of the Company's outstanding common stock up to an additional 1.6 million
shares. This amount is in addition to the remaining 154,804 shares available
for repurchase under the existing 2014 Repurchase Program
• Branch rationalization plan adopted; 15 branches identified for consolidation
by mid-2017; annual cost savings of $6.1 million
(1)Amounts and ratios exclude merger related expenses, net of tax, and for 2017 also excludes the
accelerated stock award expense for a director retirement, net of tax.
(2)Amounts are annualized.
Favorable Competitive Position
Competing Favorably Against Banking Behemoths and Local Community Banks
Source: FDIC Summary of Deposits, June 30, 2016
Note: Market area is defined as counties in Central and
Southern New Jersey
Institution
# of
Branches
Dep. In
Mkt.
($000)
TD Bank (Canada) 132 18,749,018
PNC Bank (PA) 143 17,002,556
Wells Fargo (CA) 145 15,802,079
Bank of America
(NC)
123 14,604,095
Santander Bank
(Spain)
81 6,103,973
OceanFirst Bank
# of
Branches
Dep. In Mkt.
($000)
61 4,039,695*
*Includes Ocean Shore Holding
Company branches and deposits
acquired on November 30, 2016.
Institution
# of
Branches
Dep. In
Mkt.
($000)
Sun 31 1,659,983
Manasquan 8 870,556
First Choice 5 693,069
Sturdy Savings 13 668,769
1ST Constitution 16 613,801
Two River 13 587,237
OceanFirst
Competitive
Position
Responsive
Flexible
Capable
• Lending Limit
• Technology
• Trust
• Cash Management
• Consumer &
Commercial
Mega Banks Community Banks
13
Strategic Deposit Composition Transition
Non-
Interest
Checking
Non-
Interest
Checking
Interest Checking
Interest Checking
WAR 0.19%
MMDA &
Savings
MMDA &
Savings
MMDA & Savings
WAR 0.15%
Time Deposits
Time
Deposits
Time
Deposits
WAR 1.12%
0 350 700 1,050 1,400 1,750 2,100 2,450 2,800 3,150 3,500 3,850 4,200
Dec 1996
Dec 2011
March 2017
(In Millions)
45%
55%
March 31, 2017
Deposits by Customer
Segment
Consumer Commercial
Total
Cost of
Deposits
0.28%
14
Strategic Focus on Commercial Lending Drives Business Deposits
Note: Amounts include repurchase agreements classified as borrowings but offered to local
business relationships
15
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
#
of
A
c
c
o
u
nt
s
B
alanc
e
s
(
m
il
li
o
n
s
)
Balances (000s) # of Accounts
C
ap
e
Le
ga
cy
Le
ga
cy
Le
ga
cy
OC
H
B
Le
ga
cy
C
ap
e
C
ap
e
O
C
H
B
C
ap
e
Online Banking & Bill Pay
The 12-month average as of March
2017, 41% of deposit customers
used online banking and an average
of 40,000 bills were paid with online
bill pay service each month.
Check Card
Rewards program promotes usage driving
over $300 million of card transactions in
2016. Fee income from card business
totaled over $6.3 million.
Full Suite of Technology and Delivery Systems
16
Corporate Cash Management
Added Remote Deposit Capture
(RDC) in 2007. In 2016, 304 clients
processed over 978,000 checks
using RDC.
ATM & Interactive Teller (ITM)
Fleet of intelligent ATM terminals provide
technology for continually growing self-
service deposit option. First ITM deployed in
2014 with more added in 2015 and 2016.
Mobile Banking
Consistently adopting mobile-
centric options. Currently
offering TouchID, Apple Watch,
and Apple Pay.
Customers using self-service
channels in March 2017
• 19,500 deposits totaling
$184.4 million.
• 14% of transaction volume and
29% of transaction value of
customer-presented deposits
for the Bank.
Strategic Loan Composition Transition
Investment
CRE(A)
Owner-
Occupied
CRE
Owner-
Occupied
CRE
C&I
C&I
Consumer
(Home
Equity)
Consumer
(Home
Equity)
Residential
Real Estate
Residential
Real Estate
Residential
Real Estate
0 300 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000 3,300 3,600 3,900
Dec 1996
Dec 2011
March 2017
(In Millions)
Investment
CRE
&
Note (A): Investment CRE as a percent of risk-based capital is 216% at March 31, 2017.
48%
52%
March 31, 2017
Loans by Customer Segment
Consumer Commercial
17
Credit Underwriting Remains Conservative: Commercial Loan
Production 2016 and 2017
(Dollars in thousands)
Commercial
Loan Originations
Year Three Months
Ended Ended
December 31, 2016 March 31, 2017
Commercial Loan
Portfolio at
March 31, 2017
Amount $261,301 $104,809 $1,852,736
Weighted average rate 4.13% 4.52% 4.35%
Weighted average debt service coverage ── ── 1.8X
Weighted average loan-to-value (CRE only) 70% 63% 61%
Weighted average risk rating(1) 4.5 4.4 4.8
(1)Risk rating is on a scale from 1 (best) to 9 (worst). A rating of 4.5 represents an equivalent S&P rating of BBB.
18
19
OceanFirst Maintains Conservative CRE Portfolio Relative to Peers
0 200 400 600 800 1,000 1,200
Peer 1
Peer 2
OceanFirst Bank
Peer 3
Peer 4
Peer 5
Peer 6
Peer 7
Peer 8
Peer 9
Peer 10
Peer 11
Peer Group Average
Peer 12
Peer 13
Peer 14
Peer 15
(%)
CRE to Total Risk Based Capital
December 31, 2016
12/31/2016 12/31/2014
393
1008
Capacity to grow Investor
CRE by $375 million while
remaining under 300%.
216
Domestic CRE Loans (Construction, Multifamily & Other Nonfarm Non-residential)
to Total Risk Based Capital. Supervisory guideline is 300% of TRBC.
Peers include: AROW, BMTC, DCOM, EGBN, FFIC, FISI, FLIC, LBAI, NFBK, ORIT, PGC, SASR, TMP, UVSP and WSFS.
Source: BankRegData.com
300
Highlights – Risk Management 2016 and 2017
• Interest Rate Risk Management
Core deposits(1) are 84.9% of total deposits, a significant hedge against a
rising rate environment
Approximately $150 million of excess liquidity in interest-bearing deposits at
March 31, 2017; available for investment in future quarters
• Credit Risk Management
In late 2016, sold three loan pools with high risk characteristics – residential
mortgage – 63 loans, $8.7 million; SBA – 72 loans, $10.0 million;
commercial – 58 loans, $22.4 million
Re-graded the Cape loan portfolio using OceanFirst Bank’s risk rating scale
(1)Core deposits are all deposits except time deposits.
20
Effective Interest Rate Risk Management
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Mortgage Loans Consumer Loans Commercial Loans
(CRE & C&I)
Securities Total Assets
(Weighted Average)
Borrowings Deposits
Adjustable/Floating Fixed Core Deposits, Administered
Duration
Rate Characteristics
0.0
1.0
2.0
3.0
4.0
Securities Mortgage Loans Consumer Loans Commercial Loans Total Assets
(Weighted Average)
FHLB Term
Borrowings
Time Deposits
Y
ea
rs
All asset categories managed with limited duration
At March 31, 2017
21
Term Borrowings Extended as Interest Rate Hedge
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2017 2018 2019 2020 2021
M
il
li
o
n
s
o
f
D
o
ll
a
rs
Maturity Periods
TOTAL
$250.0MM
1.75% AVG. COST
At March 31, 2017
22
0.00%
0.20%
0.40%
0.60%
0.80%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2011 2012 2013 2014 2015 2016 3/31/2017
N
e
t lo
an
ch
arge
-o
ffs
as p
erce
n
t o
f
average lo
an
s
N
o
n
-p
erf
o
rm
ing
lo
an
s
as p
erc
ent
o
f
to
ta
l l
o
an
s r
ece
iv
abl
e
Residential Consumer Commercial Real Estate Commercial Net Charge-Offs
Credit Metrics Reflect Conservative Culture
(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%.
(2)Net recovery for 2017; actual ratio below 0.0%.
Half of the net
charge-offs relate to
the sale of three
high risk acquired
loan pools
(1)
23
0.58%
0.00%
(2)
2.77% 2.80%
2.88%
1.06%
0.91%
0.35%
0.56%
0.38%
0.17%
0.15%
0.07%
0.15%
0.58% 0.38% 0.17% 0.15% 0.07% 0.15% 0.00% NET CHARGE-OFFS
OceanFirst Average Charge-Offs Since 2011
Below Peer Average
24
0.31%
0.30%
0.56%
0.48%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%
Peer 15
Peer 14
Peer 13
Peer 12
Peer 11
Peer 10
Peer Group Average
OceanFirst Bank
Peer 9
Peer 8
Peer 7
Peer 6
Peer 5
Peer 4
Peer 3
Peer 2
Peer 1
Charge-Offs / Average Loans Outstanding
YE 2011 – 2016
Average
Maximum
Charged-off loans and lease financing receivables debited to the allowance for loan and lease losses divided by average loans outstanding.
Peers include: AROW, BMTC, DCOM, EGBN, FFIC, FISI, FLIC, LBAI, NFBK, ORIT, PGC, SASR, TMP, UVSP and WSFS.
Source: BankRegData.com
Net Interest Margin
Expanded Net Interest Margin to Outperform both Historical Level and Peer Group
2.00%
2.20%
2.40%
2.60%
2.80%
3.00%
3.20%
3.40%
3.60%
3.80%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017
Historical Average (1996 – 2016) Net Interest Margin (3.29%)
Q1 2017
consolidated
NIM at 3.56%
includes 22 BP
of net accretable
yield from
purchase
accounting
adjustments and
prepayment fees
3.56
3.27
3.15
3.25
3.35
3.45
3.55
3.65
OceanFirst Bank
Peers
OceanFirst Bank: Significant expansion since 2015
Peers: Steady decline since 2014
25
Diversified Streams of Non-Interest Income
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
1996 3/31/17 (Annualized)
Pe
rc
en
t o
f A
ve
ra
ge
A
ss
et
s
Fees and Service Charges Gain on Sale of Loans
BOLI BankCard Services
Wealth Management/Investment Services Other
$2.5M
$26.9M
Targeted
Growth
Areas
Non-Interest Income excludes gain/loss from other real estate operations.
26
Generating Consistent Attractive Returns
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
2009 2010 2011 2012 2013 2014 2015 2016 3/31/17
Annualized
0.60%
0.70%
0.80%
0.90%
1.00%
1.10%
Return on Tangible Equity Return on Assets
(1)For 2013, excludes after-tax impact of $3.1 million in charges related to strategic advance restructuring and branch consolidation.
(2)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.
(1)
Re
tu
rn
o
n
A
s
s
et
s
Re
tu
rn
o
n
T
an
g
ible
C
o
m
m
o
n
E
q
u
it
y
(2)
27
12.6%
1.02%
(2) (2)
Accelerating EPS Growth
28
$0.40
$0.80
$1.20
$1.60
$2.00
2011 2012 2013 2014 2015 2016 Q1 2017
(Annualized)
Core Diluted EPS Reported Diluted EPS
(2)
(1)For 2013, excludes after-tax impact of $3.1 million in charges related to strategic advance restructuring and branch consolidation.
(2)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.
(1) (2) (2)
Prudently Managing Excess Capital in Near Term
$8.8 $8.6 $8.2 $8.2 $8.7
$12.6
$4.8
$2.1
$11.9
$8.1
$9.2
$6.5
$1.9
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2011 2012 2013 2014 2015 2016 2017
An
nu
al
Re
tu
rn
o
f C
ap
ita
l (
Mi
llio
ns
)
Cash Dividends Stock Repurchases
Notes: Stock Repurchases – $15.52 Average Cost per Share.
In Q4 2015 through Q3 2016, stock repurchases suspended as capital
was allocated to Cape and Ocean Shore acquisitions.
29
(3 Months)
Increased Quarterly
Dividend by 15% in Q4
2016, from $0.13 per
share to $0.15 per share
Why OCFC…?
• Fundamental franchise value
• Preeminent community bank in Central and Southern New Jersey
• Superior deposit profile
• Significant commercial loan growth since December 2012; current focus on recent
portfolio integrations
• Conservative credit culture
• Solid financial performance
• Consistent attractive returns
• Strong balance sheet and capital base
• Seasoned and effective management team
• Substantial insider ownership – aligned with shareholders’ interests
• Fully capable of executing on 5-year growth plan
30
Attractive Valuation Metrics
OCFC Peers(1)
31
Valuation
Price / Tang. Book Value 213% 221%
Price / 2017 Estimated EPS 16.5x 18.0x
Price / 2018 Estimated EPS 14.7x 16.7x
Core Deposit Premium(2) 12.2% 13.1%
Cash Dividend Yield 2.2% 2.2%
1) Peers include: AROW, BMTC, DCOM, EGBN, FFIC, FISI, FLIC, LBAI, NFBK, ORIT, PGC, SASR, TMP, UVSP and WSFS
2) Core Deposits for Peer Group as of March 31, 2017 from Bank Call Reports
Note: Financial data as of the most recent period available; market data as of May 1, 2017;
OCFC stock price of $27.89.
Source: SNL Financial
Appendix
32
OceanFirst Financial Corp. – Analyst Coverage
APPENDIX 1
Investor Relations Contacts
Christopher D. Maher
President and Chief Executive Officer
732-240-4500 Ext. 7504
cmaher@oceanfirst.com
Michael Fitzpatrick
Executive Vice President and Chief Financial Officer
732-240-4500 Ext. 7506
mfitzpatrick@oceanfirst.com
Jill Hewitt
Senior Vice President/Investor Relations Officer
732-240-4500 Ext. 7513
jhewitt@oceanfirst.com
33
Company
Analyst
Recommendation
Price
Target
Keefe Bruyette & Woods Collyn Gilbert Outperform $32.00
Sandler O’Neill & Partners Frank Schiraldi Hold $30.00
Piper Jaffray Matt Breese Overweight $31.00
FIG Partners David Bishop Outperform $34.00
Market Demographics
Central
New Jersey(1)
Southern
New Jersey(2)
Philadelphia
Metro(3)
Total Bank Offices in Market 864 508 848
Total Bank Deposits in Market $87.3 billion $38.0 billion $93.7 billion
Number of OceanFirst Offices 28 33
% of OceanFirst Deposits 50 50
Market Rank 11 6
Market Share (%) 2.3 5.4
Population 2,442,000 1,838,000 3,029,000
Projected 2017-2022
Population Growth (%)
7.0 2.6 4.5
Data as of June 30, 2016.
Source: SNL Financial
Notes: 1 – Includes Monmouth, Ocean, Middlesex and Mercer counties, New Jersey
2 – Includes Burlington, Atlantic, Cape May, Camden, Gloucester, Salem and Cumberland counties, New Jersey
3 – Includes Philadelphia, Bucks and Montgomery counties, Pennsylvania
APPENDIX 2
Expansion
opportunity
34
Commercial Portfolio Metrics
APPENDIX 3
Commercial Real Estate (CRE)
Owner-Occupied
Investor
Total
$ 533.1 million
1,114.0 million
$1,647.1 million
% of Total Loan Portfolio 42.7%
Average Size of CRE Loans $790,000
Largest CRE Loan $16.4 million
Pipeline as of March 31, 2017 $49.9 million
Weighted Average Yield 4.53%
Weighted Average Repricing Term 7.3 years
Commercial Loans (C&I)
Total Portfolio $205.7 million
% of Total Loan Portfolio 5.3%
Average Size of Commercial Loans $268,000
Largest Commercial Loan $17.4 million
Pipeline as of March 31, 2017 $22.1 million
Weighted Average Yield 4.41%
Weighted Average Repricing Term 3.4 years
Note: The maximum loan exposure to a single borrower, including CRE and C&I loans,
was $22.2 million. Legal lending limit of $67 million in loans to one borrower.
35
Commercial Portfolio Segmentation
APPENDIX 3
(Cont’d)
Total Commercial Loan Exposure
by Industry Classification
Arts/E ntertainment/
Recreation, 3.9%
Real E state Investment,
53.1%
Other S ervices, 3.0%
Retail T rade, 4.9%
P ublic Administration,
2.3%
M iscellaneous, 5.1%
M anufacturing, 2.5%
E ducational S ervices,
2.5%
Accommodations/ Food
S ervices, 8.7%
Healthcare, 5.7%
W holesale T rade, 2.8%
Construction, 5.5%
Real Estate Investment by
Property Classification
Residential
Development, 9.8%
Industrial/
Warehouse, 6.8%
Single Purpose,
8.2%
Miscellaneous, 8.8%
Motel, 5.9%
Multi-Family, 12.6%
Retail Store, 7.6%
Shopping Center, 8.6%
Development, 6.9%
Office, 24.8%
Diversified portfolio provides
protection against industry-
specific credit events.
As of March 31, 2017.
36
Residential Portfolio Metrics
APPENDIX 4
Residential Real Estate
Total Portfolio $1,639.6 million
% of Total Loan Portfolio 42.5%
Average size of mortgage loans $212,000
% of loans for second homes 27.4%
Portfolio weighted average loan-to-value ratio (using original or most recent appraisal)
- Loans originated during 2017
54%
60%
Portfolio average FICO score
- Loans originated during 2017
762
768
% of loans outside the New York/New Jersey market 1.7%
As of March 31, 2017, unless otherwise noted.
37
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%
o 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)
APPENDIX 5
Supports
Retail
Expansion in
High Value
Communities
OceanFirst Headquarters
OceanFirst Retail Branches,
Commercial Loan Production Offices,
and Wealth Management Office
Colonial American Retail Branches
38
Cape Bancorp Acquisition
• 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
APPENDIX 6
39
OceanFirst Headquarters
OceanFirst Retail Branches,
Commercial Loan Production Offices,
and Wealth Management Office
Cape Bank Retail Branches and
Commercial Loan Offices
40
Ocean Shore Holding Co. Acquisition
- OCFC
Branches
- OSHC
Branches
APPENDIX 7
• 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
• Shareholder Approvals – November 22, 2016
• Closing – November 30, 2016
• Systems Integration – scheduled for May 19, 2017
(1)At time of announcement
41
Atlantic City Exposure
OceanFirst Bank
March 31, 2017
# of
Loans
Amount
(000’s)
Percent of
Total Assets
Atlantic City 179 44,704 0.86%
Atlantic County 3,108 506,419 9.75%
APPENDIX 8
Serving Our Communities
• OceanFirst Foundation
As of March 31, 2017, over $31.7 million has been granted to
organizations serving the Bank’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 anticipate merger of Ocean City Home
Foundation in June 2017
As of March 31, 2017, OceanFirst Foundation has assets of
$36.3 million
APPENDIX 9
42