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

Rhea-AI Summary

OceanFirst Financial Corp. (NASDAQ: OCFC) reported net income of $21.7 million ($0.37 per diluted share) for Q4 2021, a decline from $32.1 million ($0.54) in Q4 2020. For the full year, net income reached $106.1 million ($1.78), up from $61.2 million ($1.02) in 2020. Total loans increased by $441 million this quarter, with a strong pipeline of $671 million. However, non-core operations negatively impacted net income by $6.8 million in Q4. The company declared its 100th consecutive quarterly cash dividend of $0.17 per share, payable on February 18, 2022.

Positive

• Core earnings for Q4 2021 increased to $28.5 million ($0.48 per diluted share), up from $23.2 million ($0.39) in Q4 2020.
• Total loan growth of $441 million in Q4, with record loan originations of $989 million.
• Strong loan pipeline valued at $671 million, indicating potential future growth.
• The Board declared the 100th consecutive quarterly cash dividend of $0.17 per share.

Negative

• Net income for Q4 2021 decreased to $21.7 million from $32.1 million in Q4 2020.
• Non-core operations had an adverse impact of $6.8 million on Q4 net income.
• Net interest income for the full year decreased to $305.3 million from $313 million in 2020.

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,
	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

FAQ

What were OceanFirst Financial's Q4 2021 earnings results?

OceanFirst Financial reported net income of $21.7 million, or $0.37 per diluted share, for Q4 2021.

How did OceanFirst's annual earnings compare for 2021?

For the year ended December 31, 2021, net income was $106.1 million, or $1.78 per diluted share, an increase from $61.2 million in 2020.

What impact did non-core operations have on OceanFirst's earnings?

Non-core operations negatively impacted net income by $6.8 million for Q4 2021.

What is OceanFirst's dividend payout for February 2022?

OceanFirst declared a quarterly cash dividend of $0.17 per share, scheduled for payment on February 18, 2022.

What significant growth metrics did OceanFirst achieve in Q4 2021?

OceanFirst reported total loan growth of $441 million and record loan originations of $989 million.