Oceanfirst Financial Corp 8-K, filed Dec 7, 2020
Oceanfirst Financial Corp (OCFC)
8-K
2020-12-07
For: 2020-12-07
View Original
Added on
April 08, 2026
About this 8-K
Oceanfirst Financial Corp filed this 8-K on December 7, 2020.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 7, 2020 (December 4, 2020)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File No.) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(732 )240-4500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange in which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 7.01 REGULATION FD DISCLOSURE
On December 4, 2020, OceanFirst Financial Corp. (the “Company”) provided an update on loan deferral trends under the CARES Act by means of this Form 8-K. As of December 1, 2020, total full payment deferrals declined significantly, dropping 77% to $48 million, or 0.6% of total loans, compared to $210 million, or 2.6% of total loans, at October 23, 2020.
As of December 1, 2020, $8 million of commercial forbearance deferrals, or 0.1% of total loans, remain on full forbearance status. Furthermore, as of December 1, 2020, consumer forbearance deferrals declined to $40 million, or 0.5% of total loans.
Additionally, the Company prepaid $344 million of its Federal Home Loan Bank (“FHLB”) Advances, which resulted in $12.7 million of prepayment penalties. The FHLB Advances had a weighted average coupon of 1.63% and maturities ranging from 1.1 to 6.3 years. The prepayments are anticipated to provide a 15 basis point improvement to net interest margin and an 18 basis point increase to the tier 1 leverage ratio.
Attached as Exhibit 99.1 of this Form 8-K is a copy of the presentation which the Company intends to distribute and make available to investors and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
| (d) | EXHIBITS | ||||
| 99.1 | Attached as Exhibit 99.1 is the text of a written presentation the Company intends to distribute and make available to investors, and post on its website, on December 4, 2020. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OCEANFIRST FINANCIAL CORP. | ||||||||
| Dated: | December 7, 2020 | /s/ Michael J. Fitzpatrick | ||||||
| Michael J. Fitzpatrick | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Exhibit Index
| Exhibit | Description | |||||||
Text of written presentation the Company intends to be distributed and made available to investors, and posted to the Company’s website, on December 4, 2020. | ||||||||
. . . OceanFirst Financial Corp. December Update December 4, 2020 . . . Exhibit 99.1
. . . 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 the following: changes in interest rates, general economic conditions, public health crises (such as the governmental, social and economic effects of the novel coronavirus), 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, the Bank’s ability to successfully integrate acquired operations and the other risks described in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties 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. This presentation is not an offer to sell securities, nor is it a solicitation of an offer to buy securities in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of the securities of the Company or passed upon the accuracy or adequacy of the presentation. Any representation to the contrary is a criminal offense. Except as otherwise indicated, this presentation speaks as of the date hereof. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after the date hereof. D E C E M B E R U P D A T E 2D E C E M B E R | 2 0 2 0 . . .
. . . 3 D E C E M B E R | 2 0 2 0 . . . D E C E M B E R U P D A T E Current Forbearances (December 1, 2020) Commercial (Full1) $8M 0.1% of portfolio Consumer $40M 0.5% of portfolio Total $48M 0.6% of portfolio Highest Risk Loans Liquidated: NY $30M settled in October: 84% recovery NJ/PA $49M settled in November: 80% recovery2 The forbearance portfolios are expected to be immaterial as of December 31, 2020. Going forward, credit metrics will be traditional (Delinquent, TDR, Non-Accrual, etc.) 1 Full forbearance excludes $103M making Interest Only (I/O) payments. 2 $2M of loans expected to settle in December with 100% recovery Forbearance Summary
. . . 0 200 400 600 800 1,000 1,200 1,400 Peak Requests (with Customer Commitment) 8/31/2020 10/23/2020 12/1/2020 $ M il li o n s Commercial Forbearance Trend From Peak to Remaining on Full Deferral Resume Full Payment Undecided Improve to Interest Only Remaining on Full Deferral D E C E M B E R U P D A T E Commercial Forbearance Portfolio 4 % of Total Commercial Portfolio 22.1% 6.8% 1.7% 0.2% $8M remains on full payment deferral Down 91% from peak forbearance requests as of December 1, 2020.1 $1.2B $381M $88M $8M . . . D E C E M B E R | 2 0 2 0 1This percentage includes interest only forbearance requests
. . . D E C E M B E R U P D A T E 5 Consumer Forbearance Portfolio % of Total Consumer Portfolio 11.8% 7.1% 4.2% 1.4% $329M $206M $122M $40M - 50 100 150 200 250 300 350 Peak 8/31/2020 10/23/2020 12/1/2020 $ M il li o n s Consumer Loans on Full Forbearance 88% decrease from peak Of the peak forbearance pool, $289M for which the deferral period ended by December 1, 2020 are now current or paid off and $16M requested a 3rd 90-day deferral. D E C E M B E R | 2 0 2 0 . . .
. . . 6 . . . D E C E M B E R U P D A T E • Weighted average coupon on the repaid debt was 1.63% • Maturities ranged from 1.1 years to 6.3 years • Termination payments were $12.7M • Earn back period is 2.8 years $344M of advances were repaid in late November and December Benefits Include: • 15 bps improvement to net interest margin • 18 bps increase to tier 1 leverage ratio Benefits Include: D E C E M B E R | 2 0 2 0 Federal Home Loan Bank (FHLB) Advance Paydowns
. . . Investor Relations Inquiries Jill A. Hewitt Senior Vice President, Director of Investor Relations & Corporate Communications jhewitt@oceanfirst.com (732) 240-4500, ext. 7513 7 . . .