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OceanFirst Financial Corp. Announces Third Quarter Financial Results

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OceanFirst Financial Corp. (NASDAQ: OCFC) reported a net income of $23.2 million, or $0.39 per diluted share, for Q3 2021, a significant recovery from a net loss of $6.0 million in Q3 2020. Year-to-date, net income for the first nine months reached $84.4 million, or $1.41 per diluted share, compared to $29.2 million in the previous year. Key highlights include a $361 million increase in loans, total deposits rising by $358.8 million, and net interest income of $77.1 million. The company announced a cash dividend of $0.17 per share, marking its 99th consecutive dividend payment.

Positive
  • Net income for Q3 2021 was $23.2 million, a significant increase from Q3 2020's net loss.
  • Core earnings increased to $26.7 million for Q3 2021, compared to a core loss last year.
  • Loan growth of $361 million in the quarter, with a strong pipeline of $651.4 million.
  • Deposits rose by $358.8 million in Q3 2021, indicating improving deposit quality.
  • Cash dividend of $0.17 per share declared for Q3 2021.
Negative
  • Net interest income for the first nine months decreased to $224.8 million from $235.1 million year-over-year.
  • Non-core operations adversely impacted net income by $3.6 million for Q3 2021.

RED BANK, N.J., Oct. 28, 2021 (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 $23.2 million, or $0.39 per diluted share, for the three months ended September 30, 2021 as compared to net loss available to common stockholders of $6.0 million, or $0.10 per diluted share, for the corresponding prior year period. For the nine months ended September 30, 2021, the Company reported net income available to common stockholders of $84.4 million, or $1.41 per diluted share, as compared to $29.2 million, or $0.49 per diluted share, for the corresponding prior year period. 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 Nine Months Ended,
Performance Ratios (Annualized):

September 30, June 30, September 30, September 30, September 30,
2021 2021 2020 2021 2020
Return on average assets0.78% 1.03% (0.21)% 0.98% 0.35%
Return on average stockholders’ equity6.05  7.88  (1.61)  7.49  2.68 
Return on average tangible stockholders’ equity (a)9.20  12.07  (2.51)  11.46  4.22 
Efficiency ratio67.43  60.21  66.83   60.62  65.39 
Net interest margin2.93  2.89  2.97   2.91  3.23 

(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 three and nine months ended September 30, 2021 amounted to $26.7 million and $82.7 million, respectively, or $0.45 and $1.38 per diluted share, respectively. Non-core operations had an adverse impact, net of tax, of $3.6 million for the three months ended September 30, 2021 and a favorable impact, net of tax, of $1.7 million for the nine months ended September 30, 2021, respectively.

 For the Three Months Ended, For the Nine Months Ended,
 September 30, June 30, September 30, September 30, September 30,
Core Ratios1 (Annualized):2021 2021 2020 2021 2020
Return on average assets0.90 % 1.02 % (0.01)% 0.95% 0.59%
Return on average tangible stockholders’ equity10.62  12.04  (0.11)  11.23  7.10 
Efficiency ratio62.22  60.06  59.63   60.23  57.95 

Key developments for the recent quarter are described below:

  • Loan Growth: Total loan growth for the quarter was $361.0 million. Total loan growth, excluding the impact of Paycheck Protection Program (“PPP”) loans of $30.5 million, was $391.5 million for the quarter, reflecting quarterly loan originations of $771.8 million and the purchase of a residential loan pool of $219.7 million. Along with record loan production during the quarter, the committed loan pipeline remains strong at $651.4 million.
  • Deposit Growth: Deposits increased $358.8 million during the third quarter, while cost of deposits decreased 5 basis points to 0.22% from 0.27% in the prior linked quarter, reflecting a trend in improving deposit quality.
  • Net Interest Income and Margin: Net interest income increased by $3.1 million to $77.1 million from $74.0 million in the prior linked quarter. Net interest margin increased to 2.93%, compared to 2.89% in the prior linked quarter, largely driven by the Bank’s disciplined deposit pricing practices.

______________________
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 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, “We are pleased to report strong loan originations of $771.8 million along with a record loan pipeline of $651.4 million, reflecting the momentum from our expanding commercial banking team.” Mr. Maher added, “During the quarter, the system integration of our New York Region was completed, which included the customers acquired from Country Bank last year. With this latest system conversion, all OceanFirst customers are able to take advantage of our accounts and services across all channels providing seamless and fully integrated operations.”

The Company’s Board of Directors declared its ninety-ninth consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.17 per share, will be paid on November 19, 2021 to common stockholders of record on November 8, 2021. 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 November 15, 2021 to preferred stockholders of record on October 29, 2021.

As previously announced on August 4, 2021, the Bank entered into a definitive agreement to sell two New Jersey branch locations to First Bank, including the owned premises and equipment, all deposits associated with the branches, which totaled approximately $124 million as of June 30, 2021, as well as selected performing loans totaling approximately $14 million as of June 30, 2021. The Bank has received the required regulatory approval and the closing of the sale and customer conversion is expected to take place in early December.

Results of Operations
Net income for the three months ended September 30, 2021 and net loss for the three months ended September 30, 2020 were adversely impacted by non-core operations of $3.6 million, net of tax, and $5.8 million, net of tax, respectively. Net income was favorably impacted by $1.7 million, net of tax, and adversely impacted by $19.9 million, net of tax, of non-core operations for the nine months ended September 30, 2021 and 2020, respectively. Core earnings for the three months ended September 30, 2021 were $26.7 million, or $0.45 per diluted share, an increase from core losses of $266,000, or $0.00 per diluted share, for the corresponding prior year period. Core earnings for the nine months ended September 30, 2021 were $82.7 million, or $1.38 per diluted share, an increase from core earnings of $49.0 million, or $0.82 per diluted share, for the corresponding prior year period. Net income was favorably impacted by $78,000, net of tax, of non-core operations for the prior linked quarter. Core earnings for the three months ended September 30, 2021 decreased from $29.5 million, or $0.49 per diluted share, for the prior linked quarter.

Net Interest Income and Margin
Net interest income for the three months ended September 30, 2021, increased to $77.1 million, as compared to $76.8 million for the corresponding prior year period. Net interest income for the nine months ended September 30, 2021 decreased to $224.8 million as compared to $235.1 million for the corresponding prior year period, as a result of the lower interest rate environment. Average interest-earning assets increased by $192.3 million and $590.4 million for the three and nine months ended September 30, 2021, respectively, as compared to the same prior year periods, primarily concentrated in excess balance sheet liquidity. Average loans receivable, net of allowance for loan credit losses, decreased by $486.1 million and $371.4 million for the three and nine months ended September 30, 2021, respectively, as compared to the same prior year periods, primarily due to reductions in PPP loans. Net interest margin for the three and nine months ended September 30, 2021 decreased to 2.93% and 2.91%, respectively, from 2.97% and 3.23%, respectively, for the same prior year periods. The net interest margin compression was primarily due to the excess balance sheet liquidity and the lower interest rate environment. For the three and nine months ended September 30, 2021, the cost of average interest-bearing liabilities decreased to 0.44% and 0.52%, respectively, from 0.83% and 0.93%, respectively, for the corresponding prior year periods. The total cost of deposits (including non-interest bearing deposits) was 0.22% and 0.28% for the three and nine months ended September 30, 2021, respectively, as compared to 0.49% and 0.58%, respectively, for the same prior year periods.

Net interest income for the three months ended September 30, 2021 increased by $3.1 million, as compared to the prior linked quarter, and net interest margin increased to 2.93%, compared to 2.89% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees, of 0.18% and 0.16% for the three months ended September 30, 2021 and June 30, 2021, respectively, net interest margin increased to 2.75% from 2.73%. The yield on average interest-earning assets decreased marginally to 3.24% from 3.25% in the prior linked quarter. The total cost of average interest-bearing liabilities was 0.44% for the three months ended September 30, 2021, as compared to 0.50% in the prior linked quarter, due to repricing of deposit costs and maturities of higher-yielding time deposits.

Benefit/Provision for Credit Losses
For the three and nine months ended September 30, 2021, the credit loss benefit was $3.2 million and $10.3 million, respectively, as compared to credit loss expense of $35.7 million and $55.3 million, respectively, for the corresponding prior year periods, and a credit loss benefit of $6.5 million in the prior linked quarter. The credit loss benefit for the three and nine months ended September 30, 2021 was significantly influenced by positive trends in the Bank’s asset quality combined with stabilizing trends in economic forecasts, including strong employment levels and GDP growth, partly offset by the economic uncertainty related to supply chain and labor market constraints.

Net loan recoveries were $386,000 and $442,000 for the three and nine months ended September 30, 2021, respectively, as compared to net loan charge-offs of $15.0 million and $15.9 million for the corresponding prior year periods, respectively, and net loan charge-offs of $224,000 in the prior linked quarter. The three months ended September 30, 2020 included $14.2 million in charge-offs related to the transfer of higher-risk commercial loans to held-for-sale, which were ultimately sold in the fourth quarter of 2020. Non-performing loans held-for-investment totaled $23.3 million at September 30, 2021, as compared to $31.7 million at June 30, 2021 and $29.9 million at September 30, 2020.

Non-interest Income
For the three and nine months ended September 30, 2021, other income increased to $9.9 million and $42.5 million, respectively, as compared to $8.2 million and $33.3 million, respectively, for the corresponding prior year periods. Other income for the three and nine months ended September 30, 2021 included non-core operations of $466,000 related to net losses on equity investments and $8.4 million related to net gains on equity investments, respectively. Other income for both the three and nine months ended September 30, 2020 included $3.6 million of net losses on equity investments. Excluding non-core operations, the decrease in other income for the three months ended September 30, 2021, as compared to the corresponding prior year period, was primarily due to decreases in gain on sale of loans of $1.0 million and fees and service charges of $759,000.

Excluding non-core operations, the decrease in other income for the nine months ended September 30, 2021, as compared to the corresponding prior year period, was primarily due to decreases in commercial loan swap income of $5.2 million, as a result of lower activity, and lower fees and service charges of $1.3 million, partially offset by increases in bankcard services of $1.7 million, due to lower card activity in the prior year period as a result of the pandemic, gain on sale of loans of $1.3 million, and PPP loan referral fees of $800,000.

Excluding non-core operations, other income for the three months ended September 30, 2021 decreased $878,000, as compared to the prior linked quarter, primarily due to decreases in gain on sale of loans of $1.3 million and lower fees and service charges of $836,000, partially offset by an increase in commercial loan swap income of $1.5 million, as a result of higher activity.

Non-interest Expense
Operating expenses increased to $58.7 million and decreased to $162.0 million for the three and nine months ended September 30, 2021, respectively, as compared to $56.8 million and $175.5 million, respectively, in the same prior year periods. Operating expenses for the three and nine months ended September 30, 2021 included $4.2 million and $6.1 million, respectively, of net expenses related to non-core operations. Operating expenses for the three and nine months ended September 30, 2020 included $4.0 million and $20.0 million, respectively, of net expenses related to non-core operations. Excluding non-core operations, the $1.6 million increase in operating expenses for the three months ended September 30, 2021, as compared to the corresponding prior year period, was primarily due to increases in compensation and benefits expense of $1.7 million and data processing expense of $846,000, partly offset by a decrease in equipment expense of $782,000.

Excluding non-core operations, the $372,000 increase in operating expenses for the nine months ended September 30, 2021, as compared to the corresponding prior year period, was primarily due to increases in compensation and benefits expense of $2.2 million, primarily related to higher benefit costs, federal deposit insurance and regulatory assessments of $1.4 million, and data processing expense of $953,000, partly offset by decreases in equipment expense of $1.8 million, marketing expense of $930,000, other operating expense of $469,000, and occupancy expense of $434,000.

Excluding non-core operations, operating expenses for the quarter ended September 30, 2021, increased $3.2 million, as compared to the prior linked quarter. The change was due to increases in data processing expense of $961,000, compensation and benefits expense of $818,000, professional fees of $698,000, and federal deposit insurance and regulatory assessments of $360,000.

Income Tax Expense/Benefit
The provision for income taxes was $7.4 million and $28.1 million for the three and nine months ended September 30, 2021, respectively, as compared to a benefit for income taxes of $2.6 million and provision for income taxes of $7.3 million for the same prior year periods, respectively, and provision for income taxes of $10.1 million for the prior linked quarter. The effective tax rate was 23.3% and 24.3% for the three and nine months ended September 30, 2021, respectively, as compared to 34.6% and 19.5% for the same prior year periods, respectively, and 24.8% for the prior linked quarter. The higher effective tax rate for the three months ended September 30, 2020 was primarily attributable to the net loss recognized during the quarter. The higher effective tax rate for the nine months ended September 30, 2021, as compared to the prior year period, was primarily due to the impact of a New Jersey tax code change and a higher allocation of taxable income to New York.

Financial Condition
Total assets increased by $381.4 million to $11.83 billion at September 30, 2021, from $11.45 billion at December 31, 2020. Cash and due from banks decreased $291.0 million, to $981.1 million at September 30, 2021, from $1.27 billion at December 31, 2020 as excess liquidity was primarily used to purchase securities and fund loan growth. Total debt securities increased by $319.4 million at September 30, 2021, as compared to December 31, 2020. Total loans, excluding PPP loans of $52.5 million and $95.4 million at September 30, 2021 and December 31, 2020, respectively, increased by $468.6 million, to $8.13 billion at September 30, 2021, from $7.66 billion at December 31, 2020.

Deposits increased by $346.5 million to $9.77 billion at September 30, 2021, from $9.43 billion at December 31, 2020. Excluding time deposits of $855.4 million at September 30, 2021 and $1.37 billion at December 31, 2020, total deposits increased by $863.8 million to $8.92 billion at September 30, 2021 from $8.05 billion at December 31, 2020. The loans-to-deposit ratio at September 30, 2021 was 83.7%, as compared to 82.3% at December 31, 2020.

Stockholders’ equity increased to $1.51 billion at September 30, 2021, as compared to $1.48 billion at December 31, 2020. On June 25, 2021, the Company announced the authorization of the Board of Directors of the 2021 Stock Repurchase Program to repurchase up to an additional 3.0 million shares, which is approximately 5% of the Company’s outstanding common stock. For the nine months ended September 30, 2021, the Company repurchased 1,460,009 shares under its stock repurchase program at a weighted average cost of $20.98, and there were 3,559,136 shares available for repurchase at September 30, 2021 under the existing repurchase programs. Stockholders’ equity per common share increased to $25.47 at September 30, 2021, as compared to $24.57 at December 31, 2020. Tangible common equity per common share increased to $15.78 at September 30, 2021, as compared to $14.98 at December 31, 2020.

Asset Quality
The Company’s non-performing loans decreased to $23.3 million at September 30, 2021, as compared to $36.4 million at December 31, 2020. Non-performing loans at September 30, 2021 do not include $41.4 million of purchased with credit deterioration (“PCD”) loans from prior bank acquisitions. The allowance for loan credit losses as a percentage of non-performing loans was 214.8% at September 30, 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 $6.6 million at September 30, 2021, from $34.7 million at December 31, 2020.

The Company’s allowance for loan credit losses was 0.61% of total loans at September 30, 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 $71.5 million, or 0.87% of total loans, at September 30, 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.

Conference Call
As previously announced, the Company will host an earnings conference call on Friday, October 29, 2021 at 11:00 a.m. Eastern Time. The direct dial number for the call is (844) 200-6205, using the access code 946108. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 327620, from one hour after the end of the call until January 27, 2022. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.8 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, except per share amounts)
 
  September 30, June 30, December 31, September 30,
  2021 2021 2020 2020
  (Unaudited) (Unaudited)   (Unaudited)
Assets        
Cash and due from banks $981,126  $1,084,029  $1,272,134  $980,870 
Debt securities available-for-sale, at estimated fair value 314,620  249,330  183,302  169,634 
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,503 at September 30, 2021, $1,609 at June 30, 2021, $1,715 at December 31, 2020 and $2,393 at September 30, 2020 (estimated fair value of $1,143,381 at September 30, 2021, $1,169,123 at June 30, 2021, $968,466 at December 31, 2020 and $902,418 at September 30, 2020) 1,125,382  1,146,735  937,253  871,688 
Equity investments 101,314  90,917  107,079  63,846 
Restricted equity investments, at cost 53,017  52,519  51,705  67,505 
Loans receivable, net of allowance for loan credit losses of $50,153 at September 30, 2021, $53,876 at June 30, 2021, $60,735 at December 31, 2020 and $56,350 at September 30, 2020 8,139,961  7,774,351  7,704,857  7,943,390 
Loans held-for-sale 13,428  1,493  45,524  388,763 
Interest and dividends receivable 32,512  28,014  35,269  40,671 
Other real estate owned 106  106  106  106 
Premises and equipment, net 123,669  117,509  107,094  103,249 
Bank owned life insurance 260,072  259,608  265,253  264,167 
Assets held for sale 4,613  4,032  5,782  6,717 
Goodwill 500,319  500,319  500,319  500,849 
Core deposit intangible 19,558  20,912  23,668  25,194 
Other assets 159,991  154,027  208,968  224,648 
Total assets $11,829,688  $11,483,901  $11,448,313  $11,651,297 
Liabilities and Stockholders’ Equity        
Deposits $9,774,097  $9,415,286  $9,427,616  $9,283,288 
Federal Home Loan Bank advances       343,452 
Securities sold under agreements to repurchase with retail customers 143,292  141,475  128,454  142,823 
Other borrowings 228,887  228,564  235,471  246,941 
Advances by borrowers for taxes and insurance 22,214  21,281  17,296  20,104 
Other liabilities 147,949  168,506  155,346  152,975 
Total liabilities 10,316,439  9,975,112  9,964,183  10,189,583 
Total stockholders’ equity 1,513,249  1,508,789  1,484,130  1,461,714 
Total liabilities and stockholders’ equity $11,829,688  $11,483,901  $11,448,313  $11,651,297 


OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
 
  For the Three Months Ended, For the Nine Months Ended,
  September 30, June 30, September 30, September 30, September 30,
  2021 2021 2020 2021 2020
  |---------------------- (Unaudited) ----------------------| |---------- (Unaudited) -----------|
Interest income:          
Loans $78,889  $77,048  $85,933  $233,845  $264,224 
Debt securities 5,040  5,984  5,596  16,379  18,577 
Equity investments and other 1,491  309  1,433  3,411  4,245 
Total interest income 85,420  83,341  92,962  253,635  287,046 
Interest expense:          
Deposits 5,379  6,325  11,370  20,200  37,611 
Borrowed funds 2,909  3,000  4,804  8,683  14,335 
Total interest expense 8,288  9,325  16,174  28,883  51,946 
Net interest income 77,132  74,016  76,788  224,752  235,100 
Credit loss (benefit) expense (3,179) (6,460) 35,714  (10,259) 55,332 
Net interest income after credit loss (benefit) expense 80,311  80,476  41,074  235,011  179,768 
Other income:          
Bankcard services revenue 3,409  3,591  3,097  10,052  8,319 
Trust and asset management revenue 584  591  490  1,774  1,560 
Fees and service charges 2,973  3,809  3,732  10,519  11,858 
Net (loss) gain on sales of loans (15) 1,279  1,001  3,180  1,930 
Net (loss) gain on equity investments (466) 576  (3,576) 8,397  (3,273)
Net (loss) gain from other real estate operations (3) (1) 214  (12) 12 
Income from bank owned life insurance 1,640  1,716  1,530  4,771  4,626 
Commercial loan swap income 1,588  73  1,425  2,772  7,964 
Other 173  169  266  1,068  310 
Total other income 9,883  11,803  8,179  42,521  33,306 
Operating expenses:          
Compensation and employee benefits 30,730  29,912  29,012  89,008  86,832 
Occupancy 5,005  5,314  5,270  15,380  15,814 
Equipment 1,124  1,306  1,906  4,008  5,831 
Marketing 496  625  963  1,555  2,485 
Federal deposit insurance and regulatory assessments 1,459  1,099  1,212  4,422  3,012 
Data processing 5,363  4,402  4,517  13,796  12,843 
Check card processing 1,337  1,303  1,385  4,012  3,951 
Professional fees 3,089  2,391  3,354  8,317  8,339 
Other operating expense 4,477  3,485  3,644  11,315  11,784 
FHLB advance prepayment fees         924 
Amortization of core deposit intangible 1,354  1,361  1,538  4,110  4,660 
Branch consolidation expense 4,014  26  830  5,051  4,287 
Merger related expenses 225  446  3,156  1,052  14,753 
Total operating expenses 58,673  51,670  56,787  162,026  175,515 
Income (loss) before provision (benefit) for income taxes 31,521  40,609  (7,534) 115,506  37,559 
Provision (benefit) for income taxes 7,354  10,054  (2,608) 28,087  7,314 
Net income (loss) 24,167  30,555  (4,926) 87,419  30,245 
Dividends on preferred shares 1,004  1,004  1,093  3,012  1,093 
Net income (loss) available to common stockholders $23,163  $29,551  $(6,019) $84,407  $29,152 
Basic earnings (loss) per share $0.40  $0.49  $(0.10) $1.42  $0.49 
Diluted earnings (loss) per share $0.39  $0.49  $(0.10) $1.41  $0.49 
Average basic shares outstanding 59,311  59,701  59,935  59,619  59,901 
Average diluted shares outstanding 59,515  59,966  59,935  59,862  60,076 


OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
 
LOANS RECEIVABLE  At
   September 30, June 30, March 31,  December 31, September 30,
   2021 2021 2021 2020 2020
Commercial:           
Commercial and industrial  $457,674  $474,919  $498,245  $470,656  $599,188 
Commercial real estate - owner-occupied 1,123,973  1,045,514  1,066,351  1,145,065  1,176,529 
Commercial real estate - investor 3,922,983  3,836,230  3,804,351  3,491,464  3,453,276 
Total commercial  5,504,630  5,356,663  5,368,947  5,107,185  5,228,993 
Consumer:           
Residential real estate  2,401,240  2,168,545  2,189,348  2,309,459  2,407,178 
Home equity loans and lines and other consumer 275,962  295,582  314,242  339,462  364,807 
Total consumer  2,677,202  2,464,127  2,503,590  2,648,921  2,771,985 
Total loans  8,181,832  7,820,790  7,872,537  7,756,106  8,000,978 
Deferred origination costs (fees), net 8,282  7,437  8,029  9,486  (1,238)
Allowance for loan credit losses  (50,153) (53,876) (59,976) (60,735) (56,350)
Loans receivable, net  $8,139,961  $7,774,351  $7,820,590  $7,704,857  $7,943,390 
Mortgage loans serviced for others $64,840  $68,778  $74,037  $95,789  $88,210 
 At September 30, 2021
Average Yield
          
Loan pipeline (1):           
Commercial3.69% $482,942  $463,388  $154,946  $210,024  $154,700 
Residential real estate3.08  160,070  153,798  178,352  151,152  212,107 
Home equity loans and lines4.13  8,420  11,369  11,031  6,630  10,301 
Total3.55% $651,432  $628,555  $344,329  $367,806  $377,108 


 For the Three Months Ended
 September 30, June 30, March 31, December 31, September 30,
 2021 2021 2021 2020 2020
 Average Yield          
Loan originations:           
Commercial3.12% $585,667  $259,163 (2)$547,591 (2)$173,715  $187,747 
Residential real estate3.04  174,365 (3)173,354  189,942  222,780  219,325 
Home equity loans and lines4.13  11,782  14,870  10,278  13,435  10,966 
Total3.12% $771,814  $447,387  $747,811  $409,930  $418,038 
Loans sold  $1,756  $29,556  $67,500  $56,126 (4)$56,722 


(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 a residential real estate loan pool purchase of $219.7 million for the three months ended September 30, 2021.
(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.


DEPOSITSAt
 September 30, June 30, March 31, December 31, September 30,
 2021 2021 2021 2020 2020
Type of Account         
Non-interest-bearing$2,467,952  $2,505,355  $2,417,935  $2,133,195  $2,240,799 
Interest-bearing checking4,013,565  3,628,741  3,623,132  3,646,866  3,317,296 
Money market deposit816,691  734,320  782,459  783,521  691,872 
Savings1,620,447  1,590,441  1,568,528  1,491,251  1,471,554 
Time deposits855,442  956,429  1,110,758  1,372,783  1,561,767 
Total Deposits$9,774,097  $9,415,286  $9,502,812  $9,427,616  $9,283,288 


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
 
ASSET QUALITY

September 30, June 30, March 31, December 31, September 30,
2021 2021 2021 2020 2020
Non-performing loans held-for-investment:         
Commercial and industrial$354  $1,566  $1,616  $1,551  $586 
Commercial real estate - owner-occupied8,997  11,527  11,676  13,054  11,365 
Commercial real estate - investor6,904  10,549  12,366  10,660  2,978 
Residential real estate5,484  6,114  6,398  8,642  11,518 
Home equity loans and lines and other consumer1,605  1,924  2,072  2,503  3,448 
Total non-performing loans held-for-investment23,344  31,680  34,128  36,410  29,895 
Non-performing loans held-for-sale        67,489 
Other real estate owned106  106  106  106  106 
Total non-performing assets$23,450  $31,786  $34,234  $36,516  $97,490 
PCD loans (1)$41,372  $40,064  $44,421  $48,488  $56,422 
Delinquent loans 30 to 89 days$6,647  $5,313  $16,477  $34,683  $13,753 
Troubled debt restructurings:         
Non-performing (included in total non-performing loans above)$9,617  $9,803  $4,785  $5,158  $9,866 
Performing9,661  10,311  11,466  12,009  12,777 
Total troubled debt restructurings$19,278  $20,114  $16,251  $17,167  $22,643 
Allowance for loan credit losses$50,153  $53,876  $59,976  $60,735  $56,350 
Allowance for loan credit losses as a percent of total loans held-for-investment (2)0.61% 0.69% 0.76% 0.78% 0.70%
Allowance for loan credit losses as a percent of total non-performing loans held-for-investment (2)214.84  170.06  175.74  166.81  188.49 
Non-performing loans held-for-investment as a percent of total loans held-for-investment0.29  0.41  0.43  0.47  0.37 
Non-performing assets as a percent of total assets0.20  0.28  0.30  0.32  0.84 


(1)PCD loans are not included in non-performing loans held-for-investment, troubled debt restructurings or delinquent loans totals.
(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 $21.3 million, $23.6 million, $25.7 million, $28.0 million and $31.6 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.


NET RECOVERIES (CHARGE-OFFS)For the Three Months Ended 
 September 30, June 30, March 31, December 31, September 30, 
 2021 2021 2021 2020 2020 
Net recoveries (charge-offs):          
Loan charge-offs$(163) $(420) $(356) $(3,220) $(15,411) 
Recoveries on loans549  196  636  278  416  
Net loan recoveries (charge-offs)$386  $(224) $280  $(2,942)(1)$(14,995)(2)
Net loan recoveries (charge-offs) to average total loans (annualized)NM*  0.01% NM*  0.15% 0.71% 
Net loan recoveries (charge-offs) detail:          
Commercial$(33) $(304) $126  $(775) $(14,801) 
Residential real estate280    (203) (1,731) 314  
Home equity loans and lines and other consumer139  80  357  (436) (508) 
Net loan recoveries (charge-offs)$386  $(224) $280  $(2,942)(1)$(14,995)(2)


(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.
(2)Included in net loan charge-offs for the three months ended September 30, 2020 was $14.2 million related to loans transferred to held-for-sale.
 *Not meaningful



OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
 
 For the Three Months Ended
 September 30, June 30, September 30,
 2021 2021 2020
(dollars in thousands)Average
Balance
 Interest Average
Yield/
Cost
 Average
Balance
 Interest Average
Yield/
Cost
 Average
Balance
 Interest Average
Yield/
Cost
Assets:                 
Interest-earning assets:                 
Interest-earning deposits and short-term investments$1,053,797  $441  0.17% $992,485  $241  0.10% $805,863  $236  0.12%
Securities (1)1,542,630  6,090  1.57  1,501,484  6,052  1.62  1,112,174  6,793  2.43 
Loans receivable, net (2)                 
Commercial5,361,472  55,387  4.10  5,318,436  54,258  4.09  5,554,897  58,639  4.20 
Residential real estate2,260,673  20,076  3.55  2,219,425  19,097  3.44  2,462,513  23,091  3.75 
Home equity loans and lines and other consumer289,011  3,426  4.70  304,541  3,693  4.86  379,299  4,203  4.41 
Allowance for loan credit losses, net of deferred loan costs and fees(46,436)     (53,483)     (45,912)    
Loans receivable, net7,864,720  78,889  3.98  7,788,919  77,048  3.97  8,350,797  85,933  4.09 
Total interest-earning assets10,461,147  85,420  3.24  10,282,888  83,341  3.25  10,268,834  92,962  3.60 
Non-interest-earning assets1,276,890      1,256,844      1,353,135     
Total assets$11,738,037      $11,539,732      $11,621,969     
Liabilities and Stockholders’ Equity:                 
Interest-bearing liabilities:                 
Interest-bearing checking$3,841,475  2,854  0.29% $3,701,496  3,385  0.37% $3,289,319  4,627  0.56%
Money market767,854  245  0.13  760,323  212  0.11  675,841  571  0.34 
Savings1,609,197  146  0.04  1,581,284  166  0.04  1,460,232  296  0.08 
Time deposits904,384  2,134  0.94  1,002,086  2,562  1.03  1,606,632  5,876  1.45 
Total7,122,910  5,379  0.30  7,045,189  6,325  0.36  7,032,024  11,370  0.64 
FHLB Advances           343,412  1,470  1.70 
Securities sold under agreements to repurchase142,494  51  0.14  135,181  56  0.17  144,720  174  0.48 
Other borrowings228,695  2,858  4.96  228,350  2,944  5.17  246,903  3,160  5.09 
Total borrowings371,189  2,909  3.11  363,531  3,000  3.31  735,035  4,804  2.60 
Total interest-bearing liabilities7,494,099  8,288  0.44  7,408,720  9,325  0.50  7,767,059  16,174  0.83 
Non-interest-bearing deposits2,576,123      2,462,203      2,209,241     
Non-interest-bearing liabilities148,327      164,774      162,987     
Total liabilities10,218,549      10,035,697      10,139,287     
Stockholders’ equity1,519,488      1,504,035      1,482,682     
Total liabilities and equity$11,738,037      $11,539,732      $11,621,969     
Net interest income  $77,132      $74,016      $76,788   
Net interest rate spread (3)    2.80%     2.75%     2.77%
Net interest margin (4)    2.93%     2.89%     2.97%
Total cost of deposits (including non-interest-bearing deposits)    0.22%     0.27%     0.49%


 For the Nine Months Ended September 30,
 2021 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$1,061,419  $958  0.12% $409,321  $693  0.23%
Securities (1)1,452,778  18,832  1.73  1,143,049  22,129  2.59 
Loans receivable, net (2)           
Commercial5,270,138  163,315  4.14  5,309,275  177,973  4.48 
Residential real estate2,269,066  59,242  3.48  2,480,932  71,590  3.85 
Home equity loans and lines and other consumer306,681  11,288  4.92  403,348  14,661  4.86 
Allowance for loan credit losses, net of deferred loan costs and fees(50,912)     (27,186)    
Loans receivable, net7,794,973  233,845  4.01  8,166,369  264,224  4.32 
Total interest-earning assets10,309,170  253,635  3.29  9,718,739  287,046  3.95 
Non-interest-earning assets1,264,347      1,306,568     
Total assets$11,573,517      $11,025,307     
Liabilities and Stockholders’ Equity:           
Interest-bearing liabilities:           
Interest-bearing checking$3,753,457  10,549  0.38% $3,023,093  14,559  0.64%
Money market761,975  823  0.14  647,566  2,316  0.48 
Savings1,571,345  490  0.04  1,436,594  2,266  0.21 
Time deposits1,041,371  8,338  1.07  1,563,449  18,470  1.58 
Total7,128,148  20,200  0.38  6,670,702  37,611  0.75 
FHLB Advances      483,267  6,239  1.72 
Securities sold under agreements to repurchase135,754  203  0.20  119,495  408  0.46 
Other borrowings228,472  8,480  4.96  195,754  7,688  5.25 
Total borrowings364,226  8,683  3.19  798,516  14,335  2.40 
Total interest-bearing liabilities7,492,374  28,883  0.52  7,469,218  51,946  0.93 
Non-interest-bearing deposits2,416,866      1,971,622     
Non-interest-bearing liabilities157,821      133,928     
Total liabilities10,067,061      9,574,768     
Stockholders’ equity1,506,456      1,450,539     
Total liabilities and equity$11,573,517      $11,025,307     
Net interest income  $224,752      $235,100   
Net interest rate spread (3)    2.77%     3.02%
Net interest margin (4)    2.91%     3.23%
Total cost of deposits (including non-interest-bearing deposits)    0.28%     0.58%


(1)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.
(2)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.
(3)Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(4)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)
 
  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Selected Financial Condition Data:          
Total assets $11,829,688  $11,483,901  $11,577,472  $11,448,313  $11,651,297 
Debt securities available-for-sale, at estimated fair value 314,620  249,330  268,511  183,302  169,634 
Debt securities held-to-maturity, net of allowance for securities credit losses 1,125,382  1,146,735  1,082,326  937,253  871,688 
Equity investments 101,314  90,917  50,159  107,079  63,846 
Restricted equity investments, at cost 53,017  52,519  52,199  51,705  67,505 
Loans receivable, net of allowance for loan credit losses 8,139,961  7,774,351  7,820,590  7,704,857  7,943,390 
Deposits 9,774,097  9,415,286  9,502,812  9,427,616  9,283,288 
Federal Home Loan Bank advances         343,452 
Securities sold under agreements to repurchase and other borrowings 372,179  370,039  362,641  363,925  389,764 
Stockholders’ equity 1,513,249  1,508,789  1,498,719  1,484,130  1,461,714 


  For the Three Months Ended,
  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Selected Operating Data:          
Interest income $85,420  $83,341  $84,874  $92,562  $92,962 
Interest expense 8,288  9,325  11,270  14,711  16,174 
Net interest income 77,132  74,016  73,604  77,851  76,788 
Credit loss (benefit) expense (3,179) (6,460) (620) 4,072  35,714 
Net interest income after credit loss (benefit) expense 80,311  80,476  74,224  73,779  41,074 
Other income (excluding net (loss) gain on equity investments and gain on sale of PPP loans) 10,349  11,227  12,548  11,032  11,755 
Net (loss) gain on equity investments (466) 576  8,287  24,487  (3,576)
Gain on sale of PPP loans       5,101   
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses) 54,434  51,198  50,291  53,053  52,801 
FHLB advance prepayment fees       13,333   
Branch consolidation expense 4,014  26  1,011  3,336  830 
Merger related expenses 225  446  381  1,194  3,156 
Income (loss) before provision (benefit) for income taxes 31,521  40,609  43,376  43,483  (7,534)
Provision (benefit) for income taxes 7,354  10,054  10,679  10,419  (2,608)
Net income (loss) $24,167  $30,555  $32,697  $33,064  $(4,926)
Net income (loss) available to common stockholders $23,163  $29,551  $31,693  $32,060  $(6,019)
Diluted earnings (loss) per share $0.39  $0.49  $0.53  $0.54  $(0.10)
Net accretion/amortization of purchase accounting adjustments included in net interest income $3,644  $2,835  $3,650  $6,186  $4,364 


  At or For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Selected Financial Ratios and Other Data(1):          
Performance Ratios (Annualized):          
Return on average assets (2) 0.78% 1.03% 1.12% 1.09% (0.21)%
Return on average tangible assets (2) (3) 0.82  1.08  1.18  1.14  (0.22)
Return on average stockholders’ equity (2) 6.05  7.88  8.59  8.65  (1.61)
Return on average tangible stockholders’ equity (2) (3) 9.20  12.07  13.22  13.43  (2.51)
Stockholders’ equity to total assets 12.79  13.14  12.95  12.96  12.55 
Tangible stockholders’ equity to tangible assets (3) 8.78  9.01  8.83  8.79  8.41 
Tangible common equity to tangible assets (3) 8.29  8.50  8.33  8.28  7.91 
Net interest rate spread 2.80  2.75  2.78  2.79  2.77 
Net interest margin 2.93  2.89  2.93  2.97  2.97 
Operating expenses to average assets (2) 1.98  1.80  1.83  2.40  1.94 
Efficiency ratio (2) (4) 67.43  60.21  54.73  59.86  66.83 
Loans to deposits 83.71  83.06  82.84  82.27  86.19 


  For the Nine Months Ended September 30,
  2021 2020
Performance Ratios (Annualized):    
Return on average assets (2) 0.98% 0.35%
Return on average tangible assets (2) (3) 1.02  0.37 
Return on average stockholders’ equity (2) 7.49  2.68 
Return on average tangible stockholders’ equity (2) (3) 11.46  4.22 
Net interest rate spread 2.77  3.02 
Net interest margin 2.91  3.23 
Operating expenses to average assets (2) 1.87  2.13 
Efficiency ratio (2) (4) 60.62  65.39 


  At or For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Trust and Asset Management:          
Wealth assets under administration and management $274,807  $278,785  $274,172  $245,175  $232,292 
Nest Egg 138,087  129,674  101,701  93,237  80,472 
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 25.47  25.22  24.84  24.57  24.21 
Tangible common equity per common share at end of period (3) 15.78  15.58  15.26  14.98  14.58 
Common shares outstanding at end of period 59,417,266  59,834,018  60,329,504  60,392,043  60,378,120 
Preferred shares outstanding at end of period 57,370  57,370  57,370  57,370  57,370 
Number of full-service customer facilities: 58  58  62  62  62 
Quarterly Average Balances          
Total securities $1,542,630  $1,501,484  $1,311,683  $1,209,543  $1,112,174 
Loans receivable, net 7,864,720  7,788,919  7,729,798  7,992,365  8,350,797 
Total interest-earning assets 10,461,147  10,282,888  10,180,392  10,425,380  10,268,834 
Total goodwill and core deposit intangible 520,765  522,122  523,499  525,511  527,679 
Total assets 11,738,037  11,539,732  11,439,501  11,747,439  11,621,969 
Time deposits 904,384  1,002,086  1,221,123  1,437,770  1,606,632 
Total deposits (including non-interest-bearing deposits) 9,699,033  9,507,392  9,425,609  9,505,835  9,241,265 
Total borrowed funds 371,189  363,531  357,812  590,295  735,035 
Total interest-bearing liabilities 7,494,099  7,408,720  7,571,148  7,886,598  7,767,059 
Non-interest bearing deposits 2,576,123  2,462,203  2,212,273  2,209,532  2,209,241 
Stockholders' equity 1,519,488  1,504,035  1,495,580  1,475,088  1,482,682 
           
Quarterly Yields          
Total securities 1.57% 1.62% 2.07% 2.38% 2.43%
Loans receivable, net 3.98  3.97  4.09  4.23  4.09 
Total interest-earning assets 3.24  3.25  3.38  3.53  3.60 
Time deposits 0.94  1.03  1.21  1.39  1.45 
Total cost of deposits (including non-interest-bearing deposits) 0.22  0.27  0.37  0.45  0.49 
Total borrowed funds 3.11  3.31  3.14  2.72  2.60 
Total interest-bearing liabilities 0.44  0.50  0.60  0.74  0.83 
Net interest spread 2.80  2.75  2.78  2.79  2.77 
Net interest margin 2.93  2.89  2.93  2.97  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.
SUPPLEMENTAL INFORMATION
(dollars in thousands, except per share amounts)
NON-GAAP RECONCILIATION
  For the Three Months Ended
  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Core Earnings:          
Net income (loss) available to common stockholders (GAAP) $23,163  $29,551  $31,693  $32,060  $(6,019)
Add (less) non-recurring and non-core items:          
Merger related expenses 225  446  381  1,194  3,156 
Branch consolidation expenses 4,014  26  1,011  3,336  830 
Net loss (gain) on equity investments 466  (576) (8,287) (24,487) 3,576 
FHLB advance prepayment fees       13,333   
Gain on sale of PPP loans       (5,101)  
Income tax (benefit) expense on items (1,138) 26  1,666  2,832  (1,809)
Core earnings (loss) (Non-GAAP) $26,730  $29,473  $26,464  $23,167  $(266)
Core diluted earnings (loss) per share $0.45  $0.49  $0.44  $0.39  $ 
           
Core Ratios (Annualized):          
Return on average assets 0.90% 1.02% 0.94% 0.78% (0.01)%
Return on average tangible assets 0.95  1.07  0.98  0.82  (0.01)
Return on average tangible stockholders’ equity 10.62  12.04  11.04  9.71  (0.11)
Efficiency ratio 62.22  60.06  58.37  59.69  59.63 


  For the Nine Months Ended September 30,
  2021 2020
Core Earnings:    
Net income available to common stockholders (GAAP) $84,407  $29,152 
Add (less) non-recurring and non-core items:    
Merger related expenses 1,052  14,753 
Branch consolidation expenses 5,051  4,287 
Net (gain) loss on equity investments (8,397) 3,576 
Two River and Country Bank opening credit loss expense under the CECL model   2,447 
FHLB advance prepayment fees   924 
Income tax expense (benefit) on items 554  (6,120)
Core earnings (Non-GAAP) $82,667  $49,019 
Core diluted earnings per share $1.38  $0.82 
     
Core Ratios (Annualized):    
Return on average assets 0.95% 0.59%
Return on average tangible assets 1.00  0.62 
Return on average tangible stockholders’ equity 11.23  7.10 
Efficiency ratio 60.23  57.95 


  September 30, June 30, March 31, December 31, September 30,
  2021 2021 2021 2020 2020
Tangible Equity:          
Total stockholders' equity $1,513,249  $1,508,789  $1,498,719  $1,484,130  $1,461,714 
Less:          
Goodwill 500,319  500,319  500,319  500,319  500,849 
Core deposit intangible 19,558  20,912  22,273  23,668  25,194 
Tangible stockholders' equity 993,372  987,558  976,127  960,143  935,671 
Less:          
Preferred Stock 55,527  55,527  55,527  55,527  55,544 
Tangible common equity $937,845  $932,031  $920,600  $904,616  $880,127 
           
Tangible Assets:           
Total assets $11,829,688  $11,483,901  $11,577,472  $11,448,313  $11,651,297 
Less:          
Goodwill 500,319  500,319  500,319  500,319  500,849 
Core deposit intangible 19,558  20,912  22,273  23,668  25,194 
Tangible assets $11,309,811  $10,962,670  $11,054,880  $10,924,326  $11,125,254 
           
Tangible stockholders' equity to tangible assets 8.78% 9.01% 8.83% 8.79% 8.41%
Tangible common equity to tangible assets 8.29% 8.50% 8.33% 8.28% 7.91%

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 Corp's earnings for Q3 2021?

OceanFirst Financial Corp reported a net income of $23.2 million, or $0.39 per diluted share, for Q3 2021.

How did OceanFirst Financial Corp perform in the first nine months of 2021?

For the nine months ending September 30, 2021, OceanFirst reported net income of $84.4 million, or $1.41 per diluted share.

What was the loan growth reported by OceanFirst in Q3 2021?

OceanFirst experienced a total loan growth of $361 million in Q3 2021.

What is the cash dividend declared by OceanFirst Financial Corp?

OceanFirst declared a quarterly cash dividend of $0.17 per share, marking its 99th consecutive dividend payment.

What were the impacts of non-core operations on OceanFirst's financial results?

Non-core operations adversely impacted OceanFirst's net income by $3.6 million for Q3 2021.

OceanFirst Financial Corp

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