OceanFirst Financial Corp. Announces Quarterly and Annual Earnings and Financial Results

Source: Nasdaq GlobeNewswire / 27 Jan 2022 16:30:02 America/New_York

RED BANK, N.J., Jan. 27, 2022 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $21.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2021, as compared to $32.1 million, or $0.54 per diluted share, for the corresponding prior year period. For the year ended December 31, 2021, the Company reported net income available to common stockholders of $106.1 million, or $1.78 per diluted share, as compared to $61.2 million, or $1.02 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information regarding the metrics):

	For the Three Months Ended,						For the Years Ended,
Performance Ratios (Annualized):	December 31,		September 30,		December 31,		December 31,		December 31,
Performance Ratios (Annualized):	2021		2021		2020		2021		2020
Return on average assets	0.72	%	0.78	%	1.09	%	0.91	%	0.55	%
Return on average stockholders’ equity	5.65		6.05		8.65		7.02		4.20
Return on average tangible stockholders’ equity ^(a)	8.59		9.20		13.43		10.73		6.59
Efficiency ratio	72.04		67.43		59.86		63.50		63.70
Net interest margin	2.99		2.93		2.97		2.93		3.16

^{(a) Return on average tangible stockholders’ equity, a non-GAAP (“generally accepted accounting principles”) measure, excludes the impact of intangible assets and goodwill from both assets and stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.}

Core earnings¹ for the quarter and year ended December 31, 2021 amounted to $28.5 million and $111.2 million, respectively, or $0.48 and $1.86 per diluted share, respectively. Non-core operations had an adverse impact, net of tax, of $6.8 million and $5.1 million for the quarter and year ended December 31, 2021, respectively.

	For the Three Months Ended,						For the Years Ended,
	December 31,		September 30,		December 31,		December 31,		December 31,
Core Ratios¹(Annualized):	2021		2021		2020		2021		2020
Return on average assets	0.95	%	0.90	%	0.78	%	0.95	%	0.64	%
Return on average tangible stockholders’ equity	11.30		10.62		9.71		11.25		7.77
Efficiency ratio	62.57		62.22		59.69		60.84		57.81

Key developments for the recent quarter are described below:

Loan Growth: Total loan growth for the quarter was $441.0 million. Excluding the impact of Paycheck Protection Program (“PPP”) loans of $29.6 million, total loan growth was $470.6 million for the quarter, reflecting record loan originations of $989.0 million and the purchase of a residential loan pool of $82.2 million. The committed loan pipeline remains strong at a record level of $671.0 million.
Strengthening Margin: Net interest margin increased to 2.99%, from 2.93% in the prior linked quarter, largely driven by the reduction in excess liquidity to fund loan growth. Cost of deposits decreased two basis points to 0.20%, from 0.22% for the prior linked quarter, reflecting improved deposit quality.
Branch Consolidations: The Company consolidated nine branches during the fourth quarter for a total of 67 branches consolidated. The branch consolidation expense was $7.3 million for the quarter ended December 31, 2021. Average deposits per branch totaled $207.1 million as of December 31, 2021. Additionally, the Company expects to consolidate another 10 branches in the first quarter of 2022.
Subordinated Debt: The Company has provided notice to its trustee that it will redeem $35.0 million of subordinated debt due September 30, 2026 as of March 30, 2022. The debt currently carries an interest rate of 4.14% based on a floating rate of three months LIBOR plus 392 basis points.

¹ _{Core earnings, a non-GAAP measure, and ratios derived from core earnings, for the periods presented, excludes merger related expenses, branch consolidation expenses, net loss (gain) on equity investments, Federal Home Loan Bank (“FHLB”) advance prepayment fees, gain on sale of Paycheck Protection Program (“PPP”) loans, the opening credit loss expense under the Current Expected Credit Loss (“CECL”) model related to the acquisitions of Two River Bancorp (“Two River”) and Country Bank Holding Company, Inc. (“Country Bank”) and the income tax effect of these items, (collectively referred to as “non-core” operations). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.}

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “During the fourth quarter, OceanFirst delivered exceptional loan growth with $989.0 million of loan originations while maintaining a robust committed pipeline of $671.0 million. This represents strong results from all of our commercial banking teams including our newest groups in Boston and Baltimore, which will add important momentum into 2022.” Mr. Maher added, “All of us at OceanFirst are proud to acknowledge our continued commitment to providing shareholder value as our Board of Directors has declared the Company’s 100th consecutive quarterly cash dividend for common stockholders.”

The Company’s Board of Directors declared its 100th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.17 per share will be paid on February 18, 2022 to common stockholders of record on February 7, 2022. The Board previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 15, 2022 to preferred stockholders of record on January 31, 2022.

Results of Operations
Net income for the quarter ended December 31, 2021 was adversely impacted by non-core operations of $6.8 million, net of tax, while net income for the quarter ended December 31, 2020 was favorably impacted by non-core operations of $8.9 million, net of tax. Net income for the years ended December 31, 2021 and 2020 was adversely impacted by non-core operations of $5.1 million, net of tax, and $11.0 million, net of tax, respectively. Core earnings for the quarter ended December 31, 2021 were $28.5 million, or $0.48 per diluted share, representing an increase from core earnings of $23.2 million, or $0.39 per diluted share, for the corresponding prior year period. Core earnings for the year ended December 31, 2021 were $111.2 million, or $1.86 per diluted share, an increase from $72.2 million, or $1.20 per diluted share, for the prior year. Core earnings for the quarter ended December 31, 2021 increased from $26.7 million, or $0.45 per diluted share, for the prior linked quarter, which was adversely impacted by non-core operations of $3.6 million, net of tax.

Net Interest Income and Margin
Net interest income for the quarter ended December 31, 2021 increased to $80.6 million, as compared to $77.9 million for the corresponding prior year period. Net interest income for the year ended December 31, 2021 decreased to $305.3 million, as compared to $313.0 million for the prior year, as a result of the lower interest rate environment. Average interest-earning assets increased by $280.8 million for the quarter ended December 31, 2021, as compared to the corresponding prior year period, due to securities and loan growth, which was partly funded by the redeployment of excess cash. Average interest-earning assets increased by $512.9 million for the year ended December 31, 2021, as compared to the prior year, primarily concentrated in excess balance sheet liquidity and increased securities. Average loans receivable, net of allowance for loan credit losses, increased by $305.0 million and decreased by $201.0 million for the quarter and year ended December 31, 2021, respectively, as compared to the same prior year periods. Loans receivable, net was $8.58 billion at December 31, 2021, as compared to an average balance of $8.30 billion for the quarter ended December 31, 2021.

Net interest margin for the quarter and year ended December 31, 2021 increased to 2.99% and decreased to 2.93%, respectively, from 2.97% and 3.16% for the same prior year periods, respectively. The net interest margin expansion for the quarter ended December 31, 2021 was primarily attributable to the decrease in excess balance sheet liquidity used to fund securities and loan growth. The net interest margin compression for the year ended December 31, 2021 was primarily due to the excess balance sheet liquidity and the lower interest rate environment. For the quarter and year ended December 31, 2021, the cost of average interest-bearing liabilities decreased to 0.40% and 0.49%, respectively, from 0.74% and 0.88% in the corresponding prior year periods, respectively, as a result of the lower interest rate environment. For the quarter and year ended December 31, 2021, the total cost of deposits (including non-interest bearing deposits) was 0.20% and 0.26%, respectively, as compared to 0.45% and 0.55% in the same prior year periods, respectively.

Net interest income for the quarter ended December 31, 2021 increased by $3.5 million, as compared to the prior linked quarter, and net interest margin increased to 2.99%, compared to 2.93% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees of 0.18% for each of the quarters ended December 31, 2021 and September 30, 2021, net interest margin increased to 2.81%, from 2.75%. The yield on average interest-earning assets increased to 3.28%, from 3.24% in the prior linked quarter. The total cost of average interest-bearing liabilities was 0.40% for the quarter ended December 31, 2021, as compared to 0.44% in the prior linked quarter, partly due to maturities of higher-yielding time deposits.

Benefit/Provision for Credit Loss
For the quarter and year ended December 31, 2021, the credit loss benefit was $1.6 million and $11.8 million, respectively, as compared to credit loss expense of $4.1 million and $59.4 million, respectively, for the corresponding prior year periods and a credit loss benefit of $3.2 million in the prior linked quarter. The credit loss benefit for the quarter and year ended December 31, 2021 and the quarter ended September 30, 2021 was influenced by positive trends in the Bank’s asset quality combined with stabilizing trends in economic forecasts, including strong employment levels and modest GDP growth, partly offset by the continuing economic uncertainty related to COVID-19 variants.

Net loan recoveries were $19,000 and $461,000 for the quarter and year ended December 31, 2021, respectively, as compared to net loan charge-offs of $2.9 million and $18.9 million, respectively, for the corresponding prior year periods and net loan recoveries of $386,000 in the prior linked quarter. The quarter ended December 31, 2020 included $2.3 million of charge-offs related to the sale of under-performing residential and consumer loans. The year ended December 31, 2020 included $14.6 million of charge-offs related to the sale of higher risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. Non-performing loans totaled $18.9 million at December 31, 2021, as compared to $23.3 million at September 30, 2021 and $36.4 million at December 31, 2020.

Non-interest Income
For the quarter and year ended December 31, 2021, other income decreased to $9.4 million and $51.9 million, respectively, as compared to $40.6 million and $73.9 million, respectively, for the corresponding prior year periods. Other income for the quarter and year ended December 31, 2021 included net losses of $1.3 million and net gains of $7.1 million, respectively, related to non-core operations. Other income for the quarter and year ended December 31, 2020 included $29.6 million and $26.0 million, respectively, of net gains related to non-core operations. The net gain on equity investments was primarily a result of several programs implemented by the Company in 2020 to invest excess liquidity in high quality equity securities with attractive dividend yields which were subsequently sold in 2020 and 2021.

Excluding non-core operations, the decrease in other income of $370,000 for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to decreases in net gain on sale of loans of $1.2 million and fees and service charges of $636,000, partly offset by an increase in commercial loan swap income of $1.2 million.

Excluding non-core operations, the decrease in other income of $3.1 million for the year ended December 31, 2021, as compared to the prior year, was primarily due to decreases in commercial loan swap income of $4.0 million and fees and service charges of $2.0 million, partly offset by increases in bankcard services of $1.9 million, due to lower card activity in the prior year period as a result of the pandemic, and income from bank owned life insurance of $408,000.

Excluding non-core operations, other income for the quarter ended December 31, 2021 increased $313,000, as compared to the prior linked quarter, primarily due to an increase in income from bank owned life insurance of $421,000.

Non-interest Expense
Operating expenses decreased to $64.8 million and $226.9 million for the quarter and year ended December 31, 2021, respectively, as compared to $70.9 million and $246.4 million, respectively, for the same prior year periods. Operating expenses for the quarter and year ended December 31, 2021 included $7.7 million and $13.8 million, respectively, of net expenses related to non-core operations. Operating expenses for the quarter and year ended December 31, 2020 included $17.9 million and $37.8 million, respectively, of net expenses related to non-core operations.

Excluding non-core operations, the $4.0 million increase in operating expenses for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to increases in compensation and benefits expense of $3.7 million, and data processing expense of $3.2 million, partly offset by decreases in professional fees of $1.2 million, other operating expense of $573,000, and equipment expense of $503,000.

Excluding non-core operations, the $4.4 million increase in operating expenses for the year ended December 31, 2021, as compared to the prior year, was primarily due to increases in compensation and benefits expense of $5.9 million, primarily related to higher benefit costs, data processing expense of $4.1 million, and federal deposit insurance and regulatory assessments of $1.3 million, partly offset by decreases in equipment expense of $2.3 million, professional fees of $1.2 million, other operating expense of $1.0 million, marketing expense of $948,000, and amortization of core deposit intangible of $733,000.

Excluding non-core operations, operating expenses for the quarter ended December 31, 2021 increased $2.7 million, as compared to the prior linked quarter. The change was primarily due to an increase in data processing expense of $2.4 million.

Income Tax Expense
The provision for income taxes was $4.1 million and $32.2 million for the quarter and year ended December 31, 2021, respectively, as compared to $10.4 million and $17.7 million, respectively, for the same prior year periods and $7.4 million for the prior linked quarter. The effective tax rate was 15.3% and 22.6% for the quarter and year ended December 31, 2021, respectively, as compared to 24.0% and 21.9%, respectively, for the same prior year periods and 23.3% for the prior linked quarter. The lower effective tax rate for the quarter ended December 31, 2021, as compared to the corresponding prior year periods and prior linked quarter, was primarily due to allocation of taxable income to jurisdictions other than New Jersey, which is tied to our commercial banking strategy, and other tax optimization efforts.

Financial Condition
Total assets increased by $291.3 million to $11.74 billion at December 31, 2021, from $11.45 billion at December 31, 2020. Cash and due from banks decreased by $1.07 billion to $204.9 million at December 31, 2021, from $1.27 billion at December 31, 2020, as excess liquidity was primarily used to fund loan growth and purchase securities. Total debt securities increased by $586.9 million at December 31, 2021, as compared to December 31, 2020. Total loans, excluding PPP loans of $22.9 million and $95.4 million at December 31, 2021 and December 31, 2020, respectively, increased by $939.2 million, to $8.60 billion at December 31, 2021, from $7.66 billion at December 31, 2020, primarily due to loan originations and purchases of residential real estate loan pools.

Deposits increased by $305.2 million, to $9.73 billion at December 31, 2021, from $9.43 billion at December 31, 2020. Total deposits, excluding time deposits of $775.0 million at December 31, 2021 and $1.37 billion at December 31, 2020, increased by $903.0 million to $8.96 billion at December 31, 2021, from $8.05 billion at December 31, 2020 as a result of the Company’s efforts to improve the quality of deposits. The loans-to-deposits ratio at December 31, 2021 was 88.6%, as compared to 82.3% at December 31, 2020.

Stockholders’ equity increased to $1.52 billion at December 31, 2021, as compared to $1.48 billion at December 31, 2020. On June 25, 2021, the Company announced the authorization by the Board of Directors of the 2021 Stock Repurchase Program to repurchase up to an additional 3.0 million shares, which was approximately 5% of the Company’s outstanding common stock. For the year ended December 31, 2021, the Company repurchased 1,711,484 shares under its stock repurchase programs, at a weighted average cost of $21.07, and there were 3,307,661 shares available for repurchase at December 31, 2021 under the existing stock repurchase programs. Stockholders’ equity per common share increased to $25.63 at December 31, 2021, as compared to $24.57 at December 31, 2020. Tangible common equity per common share increased by 6.3%, to $15.93 at December 31, 2021, as compared to $14.98 at December 31, 2020.

Asset Quality
The Company’s non-performing loans decreased to $18.9 million at December 31, 2021, as compared to $36.4 million at December 31, 2020. Non-performing loans at December 31, 2021 do not include $41.8 million of purchased with credit deterioration (“PCD”) loans from prior bank acquisitions. The allowance for loan credit losses as a percentage of total non-performing loans was 257.8% at December 31, 2021, as compared to 166.8% at December 31, 2020. The Company’s level of 30 to 89 days delinquent loans, excluding non-performing and PCD loans, improved to $13.5 million at December 31, 2021, from $34.7 million at December 31, 2020. The Company’s proactive management of higher risk loans in 2020 has proven valuable, as credit trends have steadily improved throughout 2021.

The Company’s allowance for loan credit losses was 0.57% of total loans at December 31, 2021, as compared to 0.78% at December 31, 2020. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $67.8 million, or 0.79% of total loans, at December 31, 2021.

Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and reporting equity and asset amounts excluding intangible assets and goodwill, which can vary from period to period, provides a better comparison of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Wednesday, May 25, 2022 at 9:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is April 6, 2022. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

Conference Call
As previously announced, the Company will host an earnings conference call on Friday, January 28, 2022 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-844-200-6205, toll free, using the access code 733688. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 549028, from one hour after the end of the call until April 28, 2022. The conference call will also be available (listen-only) via the Internet by accessing the Company’s Web address: www.oceanfirst.com - Investor Relations. The webcast will be available for 90 days.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.7 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, Washington D.C and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

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: the impact of the COVID-19 or any other pandemic on our operations and financial results and those of our customers, 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, accounting principles and guidelines 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, 2020, 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.

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)

	December 31, 2021		September 30, 2021		December 31, 2020
	(Unaudited)		(Unaudited)
Assets
Cash and due from banks	$	204,949	$	981,126	$	1,272,134
Debt securities available-for-sale, at estimated fair value		568,255		314,620		183,302
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,467 at December 31, 2021, $1,503 at September 30, 2021, and $1,715 at December 31, 2020 (estimated fair value of $1,152,744 at December 31, 2021, $1,143,381 at September 30, 2021, and $968,466 at December 31, 2020)		1,139,193		1,125,382		937,253
Equity investments		101,155		101,314		107,079
Restricted equity investments, at cost		53,195		53,017		51,705
Loans receivable, net of allowance for loan credit losses of $48,850 at December 31, 2021, $50,153 at September 30, 2021, and $60,735 at December 31, 2020		8,583,352		8,139,961		7,704,857
Loans held-for-sale		—		13,428		45,524
Interest and dividends receivable		32,606		32,512		35,269
Other real estate owned		106		106		106
Premises and equipment, net		125,828		123,669		107,094
Bank owned life insurance		259,207		260,072		265,253
Assets held for sale		6,229		4,613		5,782
Goodwill		500,319		500,319		500,319
Core deposit intangible		18,215		19,558		23,668
Other assets		147,007		159,991		208,968
Total assets	$	11,739,616	$	11,829,688	$	11,448,313
Liabilities and Stockholders’ Equity
Deposits	$	9,732,816	$	9,774,097	$	9,427,616
Securities sold under agreements to repurchase with retail customers		118,769		143,292		128,454
Other borrowings		229,141		228,887		235,471
Advances by borrowers for taxes and insurance		20,305		22,214		17,296
Other liabilities		122,032		147,949		155,346
Total liabilities		10,223,063		10,316,439		9,964,183
Total stockholders’ equity		1,516,553		1,513,249		1,484,130
Total liabilities and stockholders’ equity	$	11,739,616	$	11,829,688	$	11,448,313

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)

	For the Three Months Ended,								For the Year Ended
	December 31,			September 30,			December 31,		December 31,
	2021			2021			2020		2021			2020
	\|--------------------- (Unaudited) ---------------------\|								(Unaudited)
Interest income:
Loans	$	81,392		$	78,889		$	84,997	$	315,237		$	349,221
Debt securities		5,654			5,040			5,539		22,033			24,116
Equity investments and other		1,411			1,491			2,026		4,822			6,271
Total interest income		88,457			85,420			92,562		342,092			379,608
Interest expense:
Deposits		5,010			5,379			10,679		25,210			48,290
Borrowed funds		2,861			2,909			4,032		11,544			18,367
Total interest expense		7,871			8,288			14,711		36,754			66,657
Net interest income		80,586			77,132			77,851		305,338			312,951
Credit loss (benefit) expense		(1,573	)		(3,179	)		4,072		(11,832	)		59,404
Net interest income after credit loss (benefit) expense		82,159			80,311			73,779		317,170			253,547
Other income:
Bankcard services revenue		3,308			3,409			3,098		13,360			11,417
Trust and asset management revenue		562			584			492		2,336			2,052
Fees and service charges		3,314			2,973			3,950		13,833			15,808
Net gain (loss) on sales of loans		6			(15	)		6,348		3,186			8,278
Net (loss) gain on equity investments		(1,252	)		(466	)		24,487		7,145			21,214
Net (loss) gain from other real estate operations		(3	)		(3	)		23		(15	)		35
Income from bank owned life insurance		2,061			1,640			1,798		6,832			6,424
Commercial loan swap income		1,323			1,588			116		4,095			8,080
Other		91			173			308		1,159			618
Total other income		9,410			9,883			40,620		51,931			73,926
Operating expenses:
Compensation and employee benefits		31,006			30,730			27,323		120,014			114,155
Occupancy		5,101			5,005			4,968		20,481			20,782
Equipment		1,435			1,124			1,938		5,443			7,769
Marketing		614			496			632		2,169			3,117
Federal deposit insurance and regulatory assessments		1,733			1,459			1,859		6,155			4,871
Data processing		7,774			5,363			4,624		21,570			17,467
Check card processing		1,170			1,337			1,507		5,182			5,458
Professional fees		2,726			3,089			3,908		11,043			12,247
FHLB advance prepayment fees		—			—			13,333		—			14,257
Amortization of core deposit intangible		1,343			1,354			1,526		5,453			6,186
Branch consolidation expense		7,286			4,014			3,336		12,337			7,623
Merger related expenses		451			225			1,194		1,503			15,947
Other operating expense		4,195			4,477			4,768		15,510			16,552
Total operating expenses		64,834			58,673			70,916		226,860			246,431
Income before provision for income taxes		26,735			31,521			43,483		142,241			81,042
Provision for income taxes		4,078			7,354			10,419		32,165			17,733
Net income		22,657			24,167			33,064		110,076			63,309
Dividends on preferred shares		1,004			1,004			1,004		4,016			2,097
Net income available to common stockholders	$	21,653		$	23,163		$	32,060	$	106,060		$	61,212
Basic earnings per share	$	0.37		$	0.40		$	0.53	$	1.79		$	1.02
Diluted earnings per share	$	0.37		$	0.39		$	0.54	$	1.78		$	1.02
Average basic shares outstanding		58,801			59,311			59,961		59,406			59,919
Average diluted shares outstanding		59,044			59,515			60,057		59,649			60,072

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)

LOANS RECEIVABLE			At
			December 31,			September 30,			June 30,			March 31,			December 31,
			2021			2021			2021			2021			2020
Commercial:
Commercial and industrial			$	449,224		$	457,674		$	474,919		$	498,245		$	470,656
Commercial real estate - owner-occupied				1,055,065			1,123,973			1,045,514			1,066,351			1,145,065
Commercial real estate - investor				4,378,061			3,922,983			3,836,230			3,804,351			3,491,464
Total commercial				5,882,350			5,504,630			5,356,663			5,368,947			5,107,185
Consumer:
Residential real estate				2,479,701			2,401,240			2,168,545			2,189,348			2,309,459
Home equity loans and lines and other consumer				260,819			275,962			295,582			314,242			339,462
Total consumer				2,740,520			2,677,202			2,464,127			2,503,590			2,648,921
Total loans				8,622,870			8,181,832			7,820,790			7,872,537			7,756,106
Deferred origination costs (fees), net				9,332			8,282			7,437			8,029			9,486
Allowance for loan credit losses				(48,850	)		(50,153	)		(53,876	)		(59,976	)		(60,735	)
Loans receivable, net			$	8,583,352		$	8,139,961		$	7,774,351		$	7,820,590		$	7,704,857
Mortgage loans serviced for others			$	60,447		$	64,840		$	68,778		$	74,037		$	95,789
	At December 31, 2021 Average Yield
Loan pipeline ⁽¹⁾:
Commercial	3.65	%	$	539,426		$	482,942		$	463,388		$	154,946		$	210,024
Residential real estate	3.03			123,211			160,070			153,798			178,352			151,152
Home equity loans and lines	4.41			8,381			8,420			11,369			11,031			6,630
Total	3.55	%	$	671,018		$	651,432		$	628,555		$	344,329		$	367,806

	For the Three Months Ended
						September 30,			June 30,			March 31,			December 31,
	December 31, 2021					2021			2021			2021			2020
	Average Yield
Loan originations:
Commercial	3.28	%	$	780,464		$	585,667		$	259,163	⁽²⁾	$	547,591	⁽²⁾	$	173,715
Residential real estate	3.01			195,942	⁽³⁾		174,365	⁽³⁾		173,354			189,942			222,780
Home equity loans and lines	4.05			12,552			11,782			14,870			10,278			13,435
Total	3.24	%	$	988,958		$	771,814		$	447,387		$	747,811		$	409,930
Loans sold			$	649		$	1,756		$	29,556		$	67,500		$	56,126	⁽⁴⁾

	(1)	Loan pipeline includes loans approved but not funded.
	(2)	Excludes loans originated through the PPP of $13 million and $60 million for the three months ended June 30, 2021 and March 31, 2021, respectively.
	(3)	Excludes residential real estate loan pool purchases of $82.2 million and $219.7 million for the three months ended December 31, 2021 and September 30, 2021, respectively.
	(4)	Excludes the sale of PPP loans of $298.1 million, higher risk commercial loans of $64.8 million, net of charge-offs and under-performing residential and home equity loans and lines of $10.5 million, net of charge-offs, for the three months ended December 31, 2020.

DEPOSITS	At
	December 31,		September 30,		June 30,		March 31,		December 31,
	2021		2021		2021		2021		2020
Type of Account
Non-interest-bearing	$	2,412,056	$	2,467,952	$	2,505,355	$	2,417,935	$	2,133,195
Interest-bearing checking		4,201,736		4,013,565		3,628,741		3,623,132		3,646,866
Money market		736,090		816,691		734,320		782,459		783,521
Savings		1,607,933		1,620,447		1,590,441		1,568,528		1,491,251
Time deposits		775,001		855,442		956,429		1,110,758		1,372,783
Total deposits	$	9,732,816	$	9,774,097	$	9,415,286	$	9,502,812	$	9,427,616

OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
ASSET QUALITY	2021			2021			2021			2021			2020
Non-performing loans:
Commercial and industrial	$	299		$	354		$	1,566		$	1,616		$	1,551
Commercial real estate - owner-occupied		8,687			8,997			11,527			11,676			13,054
Commercial real estate - investor		2,021			6,904			10,549			12,366			10,660
Residential real estate		6,094			5,484			6,114			6,398			8,642
Home equity loans and lines and other consumer		1,847			1,605			1,924			2,072			2,503
Total non-performing loans		18,948			23,344			31,680			34,128			36,410
Other real estate owned		106			106			106			106			106
Total non-performing assets	$	19,054		$	23,450		$	31,786		$	34,234		$	36,516
PCD loans ⁽¹⁾	$	41,817		$	41,372		$	40,064		$	44,421		$	48,488
Delinquent loans 30 to 89 days	$	13,546		$	6,647		$	5,313		$	16,477		$	34,683
Troubled debt restructurings:
Non-performing (included in total non-performing loans above)	$	10,974		$	9,617		$	9,803		$	4,785		$	5,158
Performing		12,320			9,661			10,311			11,466			12,009
Total troubled debt restructurings	$	23,294		$	19,278		$	20,114		$	16,251		$	17,167
Allowance for loan credit losses	$	48,850		$	50,153		$	53,876		$	59,976		$	60,735
Allowance for loan credit losses as a percent of total loans receivable ⁽²⁾		0.57	%		0.61	%		0.69	%		0.76	%		0.78	%
Allowance for loan credit losses as a percent of total non-performing loans ⁽²⁾		257.81			214.84			170.06			175.74			166.81
Non-performing loans as a percent of total loans receivable		0.22			0.29			0.41			0.43			0.47
Non-performing assets as a percent of total assets		0.16			0.20			0.28			0.30			0.32

	(1)	PCD loans are not included in non-performing loans, troubled debt restructurings or delinquent loans totals as such loans are marked to fair value at the time of acquisition.
	(2)	Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $18.9 million, $21.3 million, $23.6 million, $25.7 million, and $28.0 million at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

NET LOAN RECOVERIES (CHARGE-OFFS)	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Net loan recoveries (charge-offs):
Loan charge-offs	$	(92	)	$	(163	)	$	(420	)	$	(356	)	$	(3,220	)
Recoveries on loans		111			549			196			636			278
Net loan recoveries (charge-offs)	$	19		$	386		$	(224	)	$	280		$	(2,942	)	⁽¹⁾
Net loan recoveries (charge-offs) to average total loans (annualized)	NM*			NM*				0.01	%	NM*				0.15	%
Net loan recoveries (charge-offs) detail:
Commercial	$	(24	)	$	(33	)	$	(304	)	$	126		$	(775	)
Residential real estate		21			280			—			(203	)		(1,731	)
Home equity loans and lines and other consumer		22			139			80			357			(436	)
Net loan recoveries (charge-offs)	$	19		$	386		$	(224	)	$	280		$	(2,942	)	⁽¹⁾

	(1)	Included in net loan charge-offs for the three months ended December 31, 2020 was $2.3 million related to under-performing residential and consumer loans sold.
	*	Not meaningful

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME

	For the Three Months Ended
	December 31, 2021							September 30, 2021							December 31, 2020
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	698,652		$	300	0.17	%	$	1,053,797		$	441	0.17	%	$	1,223,472		$	341	0.11	%
Securities ⁽²⁾		1,710,143			6,765	1.57			1,542,630			6,090	1.57			1,209,543			7,224	2.38
Loans receivable, net ⁽³⁾
Commercial		5,635,642			57,829	4.07			5,361,472			55,387	4.10			5,271,633			58,776	4.44
Residential real estate		2,430,635			20,454	3.37			2,260,673			20,076	3.55			2,420,494			21,530	3.56
Home equity loans and lines and other consumer		273,007			3,109	4.52			289,011			3,426	4.70			351,920			4,691	5.30
Allowance for loan credit losses, net of deferred loan costs and fees		(41,889	)		—	—			(46,436	)		—	—			(51,682	)		—	—
Loans receivable, net		8,297,395			81,392	3.89			7,864,720			78,889	3.98			7,992,365			84,997	4.23
Total interest-earning assets		10,706,190			88,457	3.28			10,461,147			85,420	3.24			10,425,380			92,562	3.53
Non-interest-earning assets		1,247,420							1,276,890							1,322,112
Total assets	$	11,953,610						$	11,738,037						$	11,747,492
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	4,249,001			2,851	0.27	%	$	3,841,475			2,854	0.29	%	$	3,601,814			4,836	0.53	%
Money market		790,471			282	0.14			767,854			245	0.13			766,866			586	0.30
Savings		1,611,522			141	0.03			1,609,197			146	0.04			1,489,853			240	0.06
Time deposits		819,025			1,736	0.84			904,384			2,134	0.94			1,437,770			5,017	1.39
Total		7,470,019			5,010	0.27			7,122,910			5,379	0.30			7,296,303			10,679	0.58
FHLB advances		—			—	—			—			—	—			204,880			779	1.51
Securities sold under agreements to repurchase		132,520			50	0.15			142,494			51	0.14			143,385			154	0.43
Other borrowings		228,980			2,811	4.87			228,695			2,858	4.96			242,030			3,099	5.09
Total borrowings		361,500			2,861	3.14			371,189			2,909	3.11			590,295			4,032	2.72
Total interest-bearing liabilities		7,831,519			7,871	0.40			7,494,099			8,288	0.44			7,886,598			14,711	0.74
Non-interest-bearing deposits		2,467,588							2,576,123							2,209,532
Non-interest-bearing liabilities		134,527							148,327							176,274
Total liabilities		10,433,634							10,218,549							10,272,404
Stockholders’ equity		1,519,976							1,519,488							1,475,088
Total liabilities and equity	$	11,953,610						$	11,738,037						$	11,747,492
Net interest income				$	80,586						$	77,132						$	77,851
Net interest rate spread ⁽⁴⁾						2.88	%						2.80	%						2.79	%
Net interest margin ⁽⁵⁾						2.99	%						2.93	%						2.97	%
Total cost of deposits (including non-interest-bearing deposits)						0.20	%						0.22	%						0.45	%

	For the Year Ended
	December 31, 2021							December 31, 2020
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost		Average Balance			Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	969,982		$	1,258	0.13	%	$	613,971		$	1,034	0.17	%
Securities ⁽²⁾		1,517,649			25,597	1.69			1,159,764			29,353	2.53
Loans receivable, net ⁽³⁾
Commercial		5,362,265			221,144	4.12			5,299,813			236,749	4.47
Residential real estate		2,309,790			79,696	3.45			2,465,740			93,120	3.78
Home equity loans and lines and other consumer		298,193			14,397	4.83			390,421			19,352	4.96
Allowance for loan credit losses, net of deferred loan costs and fees		(48,637	)		—	—			(33,343	)		—	—
Loans receivable, net		7,921,611			315,237	3.98			8,122,631			349,221	4.30
Total interest-earning assets		10,409,242			342,092	3.29			9,896,366			379,608	3.84
Non-interest-earning assets		1,260,079							1,310,474
Total assets	$	11,669,321						$	11,206,840
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,878,465			13,400	0.35	%	$	3,168,889			19,395	0.61	%
Money market		769,157			1,105	0.14			677,554			2,902	0.43
Savings		1,581,472			631	0.04			1,449,982			2,505	0.17
Time deposits		985,328			10,074	1.02			1,531,857			23,488	1.53
Total		7,214,422			25,210	0.35			6,828,282			48,290	0.71
FHLB advances		—			—	—			413,290			7,018	1.70
Securities sold under agreements to repurchase		134,939			253	0.19			125,500			562	0.45
Other borrowings		228,600			11,291	4.94			207,386			10,787	5.20
Total borrowings		363,539			11,544	3.18			746,176			18,367	2.46
Total interest-bearing liabilities		7,577,961			36,754	0.49			7,574,458			66,657	0.88
Non-interest-bearing deposits		2,429,547							2,031,100
Non-interest-bearing liabilities		151,950							144,571
Total liabilities		10,159,458							9,750,129
Stockholders’ equity		1,509,863							1,456,711
Total liabilities and equity	$	11,669,321						$	11,206,840
Net interest income				$	305,338						$	312,951
Net interest rate spread ⁽⁴⁾						2.80	%						2.96	%
Net interest margin ⁽⁵⁾						2.93	%						3.16	%
Total cost of deposits (including non-interest-bearing deposits)						0.26	%						0.55	%

	(1)	Average yields and costs are annualized.
	(2)	Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
	(3)	Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
	(4)	Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
	(5)	Net interest margin represents net interest income divided by average interest-earning assets.

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Selected Financial Condition Data:
Total assets	$	11,739,616		$	11,829,688		$	11,483,901		$	11,577,472		$	11,448,313
Debt securities available-for-sale, at estimated fair value		568,255			314,620			249,330			268,511			183,302
Debt securities held-to-maturity, net of allowance for securities credit losses		1,139,193			1,125,382			1,146,735			1,082,326			937,253
Equity investments		101,155			101,314			90,917			50,159			107,079
Restricted equity investments, at cost		53,195			53,017			52,519			52,199			51,705
Loans receivable, net of allowance for loan credit losses		8,583,352			8,139,961			7,774,351			7,820,590			7,704,857
Deposits		9,732,816			9,774,097			9,415,286			9,502,812			9,427,616
Securities sold under agreements to repurchase and other borrowings		347,910			372,179			370,039			362,641			363,925
Stockholders’ equity		1,516,553			1,513,249			1,508,789			1,498,719			1,484,130

	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Selected Operating Data:
Interest income	$	88,457		$	85,420		$	83,341		$	84,874		$	92,562
Interest expense		7,871			8,288			9,325			11,270			14,711
Net interest income		80,586			77,132			74,016			73,604			77,851
Credit loss (benefit) expense		(1,573	)		(3,179	)		(6,460	)		(620	)		4,072
Net interest income after credit loss (benefit) expense		82,159			80,311			80,476			74,224			73,779
Other income (excluding net (loss) gain on equity investments and gain on sale of PPP loans)		10,662			10,349			11,227			12,548			11,032
Net (loss) gain on equity investments		(1,252	)		(466	)		576			8,287			24,487
Gain on sale of PPP loans		—			—			—			—			5,101
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses)		57,097			54,434			51,198			50,291			53,053
FHLB advance prepayment fees		—			—			—			—			13,333
Branch consolidation expense		7,286			4,014			26			1,011			3,336
Merger related expenses		451			225			446			381			1,194
Income before provision for income taxes		26,735			31,521			40,609			43,376			43,483
Provision for income taxes		4,078			7,354			10,054			10,679			10,419
Net income	$	22,657		$	24,167		$	30,555		$	32,697		$	33,064
Net income available to common stockholders	$	21,653		$	23,163		$	29,551		$	31,693		$	32,060
Diluted earnings per share	$	0.37		$	0.39		$	0.49		$	0.53		$	0.54
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	3,610		$	3,644		$	2,835		$	3,650		$	6,186

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Selected Financial Ratios and Other Data⁽¹⁾:
Performance Ratios (Annualized):
Return on average assets ⁽²⁾		0.72	%		0.78	%		1.03	%		1.12	%		1.09	%
Return on average tangible assets^{(2) (3)}		0.75			0.82			1.08			1.18			1.14
Return on average stockholders' equity ⁽²⁾		5.65			6.05			7.88			8.59			8.65
Return on average tangible stockholders' equity ^{(2) (3)}		8.59			9.20			12.07			13.22			13.43
Stockholders' equity to total assets		12.92			12.79			13.14			12.95			12.96
Tangible stockholders' equity to tangible assets ⁽³⁾		8.89			8.78			9.01			8.83			8.79
Tangible common equity to tangible assets ⁽³⁾		8.40			8.29			8.50			8.33			8.28
Net interest rate spread		2.88			2.80			2.75			2.78			2.79
Net interest margin		2.99			2.93			2.89			2.93			2.97
Operating expenses to average assets ⁽²⁾		2.15			1.98			1.80			1.83			2.40
Efficiency ratio ^{(2) (4)}		72.04			67.43			60.21			54.73			59.86
Loans-to-deposits		88.60			83.71			83.06			82.84			82.27

										At or For the Year Ended December 31,
										2021			2020
Performance Ratios:
Return on average assets ⁽²⁾											0.91	%		0.55	%
Return on average tangible assets ^{(2) (3)}											0.95			0.57
Return on average stockholders' equity⁽²⁾											7.02			4.20
Return on average tangible stockholders' equity^{(2) (3)}											10.73			6.59
Net interest rate spread											2.80			2.96
Net interest margin											2.93			3.16
Operating expenses to average assets⁽²⁾											1.94			2.20
Efficiency ratio^{(2) (4)}											63.50			63.70

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	287,404		$	274,807		$	278,785		$	274,172		$	245,175
Nest Egg AUA/M		428,558			423,563			425,921			410,497			398,174
Total AUA/M		715,962			698,370			704,706			684,669			643,349
Per Share Data:
Cash dividends per common share	$	0.17		$	0.17		$	0.17		$	0.17		$	0.17
Stockholders’ equity per common share at end of period		25.63			25.47			25.22			24.84			24.57
Tangible common equity per common share at end of period ⁽³⁾		15.93			15.78			15.58			15.26			14.98
Common shares outstanding at end of period		59,175,046			59,417,266			59,834,018			60,329,504			60,392,043
Preferred shares outstanding at end of period		57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:		47			58			58			62			62
Quarterly Average Balances
Total securities	$	1,710,143		$	1,542,630		$	1,501,484		$	1,311,683		$	1,209,543
Loans receivable, net		8,297,395			7,864,720			7,788,919			7,729,798			7,992,365
Total interest-earning assets		10,706,190			10,461,147			10,282,888			10,180,392			10,425,380
Total goodwill and core deposit intangible		519,401			520,765			522,122			523,499			525,511
Total assets		11,953,610			11,738,037			11,539,732			11,439,501			11,747,439
Time deposits		819,025			904,384			1,002,086			1,221,123			1,437,770
Total deposits (including non-interest-bearing deposits)		9,937,607			9,699,033			9,507,392			9,425,609			9,505,835
Total borrowed funds		361,500			371,189			363,531			357,812			590,295
Total interest-bearing liabilities		7,831,519			7,494,099			7,408,720			7,571,148			7,886,598
Non-interest bearing deposits		2,467,588			2,576,123			2,462,203			2,212,273			2,209,532
Stockholders’ equity		1,519,976			1,519,488			1,504,035			1,495,580			1,475,088
Tangible stockholders’ equity		1,000,575			998,723			981,913			972,081			949,577
Quarterly Yields
Total securities		1.57	%		1.57	%		1.62	%		2.07	%		2.38	%
Loans receivable, net		3.89			3.98			3.97			4.09			4.23
Total interest-earning assets		3.28			3.24			3.25			3.38			3.53
Time deposits		0.84			0.94			1.03			1.21			1.39
Total cost of deposits (including non-interest-bearing deposits)		0.20			0.22			0.27			0.37			0.45
Total borrowed funds		3.14			3.11			3.31			3.14			2.72
Total interest-bearing liabilities		0.40			0.44			0.50			0.60			0.74
Net interest spread		2.88			2.80			2.75			2.78			2.79
Net interest margin		2.99			2.93			2.89			2.93			2.97

	(1)	With the exception of end of quarter ratios, all ratios are based on average daily balances.
	(2)	Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
	(3)	Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity.
	(4)	Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.

OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION
	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Core Earnings:
Net income available to common stockholders (GAAP)	$	21,653		$	23,163		$	29,551		$	31,693		$	32,060
Add (less) non-recurring and non-core items:
Merger related expenses		451			225			446			381			1,194
Branch consolidation expense		7,286	⁽¹⁾		4,014			26			1,011			3,336
Net loss (gain) on equity investments		1,252			466			(576	)		(8,287	)		(24,487	)
FHLB advance prepayment fees		—			—			—			—			13,333
Gain on sale of PPP loans		—			—			—			—			(5,101	)
Income tax (benefit) expense on items		(2,144	)		(1,138	)		26			1,666			2,832
Core earnings (Non-GAAP)	$	28,498		$	26,730		$	29,473		$	26,464		$	23,167
Core diluted earnings per share	$	0.48		$	0.45		$	0.49		$	0.44		$	0.39

Core Ratios (Annualized):
Return on average assets		0.95	%		0.90	%		1.02	%		0.94	%		0.78	%
Return on average tangible assets		0.99			0.95			1.07			0.98			0.82
Return on average tangible stockholders’ equity		11.30			10.62			12.04			11.04			9.71
Efficiency ratio		62.57			62.22			60.06			58.37			59.69
(1) Includes $2.0 million of gains related to the sale of two branches for the three months ended December 31, 2021.

										For the Years Ended December 31,
										2021			2020
Core Earnings:
Net income available to common stockholders (GAAP)										$	106,060		$	61,212
Add (less) non-recurring and non-core items:
Merger related expenses											1,503			15,947
Branch consolidation expense											12,337	⁽¹⁾		7,623
Net gain on equity investments											(7,145	)		(20,911	)
FHLB advance prepayment fees											—			14,257
Gain on sale of PPP loans											—			(5,101	)
Two River and Country Bank opening credit loss expense under the CECL model											—			2,447
Income tax benefit on items											(1,590	)		(3,288	)
Core earnings (Non-GAAP)										$	111,165		$	72,186
Core diluted earnings per share										$	1.86		$	1.20

Core Ratios:
Return on average assets											0.95	%		0.64	%
Return on average tangible assets											1.00			0.68
Return on average tangible stockholders’ equity											11.25			7.77
Efficiency ratio											60.84			57.81
(1) Includes $2.0 million of gains related to the sale of two branches for the year ended December 31, 2021.

	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Tangible Equity:
Total stockholders' equity	$	1,516,553		$	1,513,249		$	1,508,789		$	1,498,719		$	1,484,130
Less:
Goodwill		500,319			500,319			500,319			500,319			500,319
Core deposit intangible		18,215			19,558			20,912			22,273			23,668
Tangible stockholders’ equity		998,019			993,372			987,558			976,127			960,143
Less:
Preferred stock		55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	942,492		$	937,845		$	932,031		$	920,600		$	904,616

Tangible Assets:
Total assets	$	11,739,616		$	11,829,688		$	11,483,901		$	11,577,472		$	11,448,313
Less:
Goodwill		500,319			500,319			500,319			500,319			500,319
Core deposit intangible		18,215			19,558			20,912			22,273			23,668
Tangible assets	$	11,221,082		$	11,309,811		$	10,962,670		$	11,054,880		$	10,924,326

Tangible stockholders' equity to tangible assets		8.89	%		8.78	%		9.01	%		8.83	%		8.79	%
Tangible common equity to tangible assets		8.40	%		8.29	%		8.50	%		8.33	%		8.28	%

Company Contact:

Michael J. Fitzpatrick
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 7506
Email: Mfitzpatrick@oceanfirst.com

OceanFirst Financial Corp. Announces Quarterly and Annual Earnings and Financial Results

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