News Details

OceanFirst Financial Corp. Announces 12.7% Increase in Annual Earnings, Continuation of Quarterly Dividend and Election of Angelo Catania as Director

January 19, 2006

TOMS RIVER, N.J.--(BUSINESS WIRE)--Jan. 19, 2006--OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share for the year ended December 31, 2005 increased 12.7% to $1.60 from $1.42 for the corresponding prior year period. For the quarter ended December 31, 2005 diluted earnings per share was $.40, unchanged from the corresponding prior year period. The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $.20 per share--covering the three month period ended December 31, 2005--to be paid on February 10, 2006, to shareholders of record on January 27, 2006.

In making today's announcement, John R. Garbarino, Chairman, President and Chief Executive Officer said, "In the face of strong pressures on our margin, the increased annual earnings for 2005 is reflective of our successful efforts to grow core deposits and respond to the challenges of the market. Core deposits increased $72.5 million during the year, a 9.1% rate. I am also pleased to announce our thirty-sixth consecutive quarterly cash dividend reflecting an attractive 3.4% yield on our common stock."

Results of Operations

Net interest income for the quarter and year ended December 31, 2005 increased to $15.4 million and $60.9 million, respectively, as compared to $14.5 million and $56.0 million, respectively, in the same prior year periods, reflecting a slightly higher net interest margin and higher levels of interest-earning assets. The net interest margin increased to 3.24% and 3.30%, respectively, for the quarter and year ended December 31, 2005 from 3.23% in the same prior year periods. The yield on interest-earning assets increased to 5.74% and 5.56%, respectively, for the quarter and year ended December 31, 2005, as compared to 5.26% and 5.25%, respectively, for the same prior year periods. The cost of interest-bearing liabilities increased to 2.74% and 2.49%, respectively, for the quarter and year ended December 31, 2005, as compared to 2.23% and 2.22%, respectively, in the same prior year periods. Balance sheet growth was also sustained as average interest-earning assets increased by $107.6 million and $115.4 million, respectively, for the quarter and year ended December 31, 2005, as compared to the same prior year periods. The growth was concentrated in average loans receivable which grew $162.3 million, or 10.6% for the quarter ended December 31, 2005, as compared to the same prior year period. For the year ended December 31, 2005 average loans receivable increased $145.3 million or 9.8%, as compared to the same prior year period. The loan growth was funded by average interest-bearing deposits which grew $103.7 million, or 9.0% for the quarter ended December 31, 2005, as compared to the same prior year period. For the year ended December 31, 2005 average interest-bearing deposits increased $136.3 million, or 12.5%, as compared to the same prior year period.

Revenue growth also continued for the year as other income increased to $24.1 million for the year ended December 31, 2005, from $20.7 million in the same prior year period. For the quarter ended December 31, 2005 other income decreased to $6.0 million, as compared to $6.6 million for the same prior year period. For the quarter and year ended December 31, 2005, the Company recorded gains of $3.1 million and $13.2 million, respectively, on the sale of loans and securities, as compared to gains of $4.1 million and $10.8 million, respectively, in the same prior year periods. For the quarter and year ended December 31, 2004, the gain on sale of loans and securities includes a gain of $186,000 on the sale of equity securities. Loans sold for the quarter and year ended December 31, 2005 amounted to $173.3 million and $712.0 million, respectively, from $183.8 million and $499.2 million, respectively, in the same prior year periods. In the third quarter of 2004, the Company expanded its loan production platform through the acquisition of a consumer direct lending operation by Columbia Home Loans, LLC, the Company's mortgage banking subsidiary. Fees and service charges increased $341,000, or 16.1% and $1.1 million, or 13.8%, for the quarter and year ended December 31, 2005, respectively, as compared to the same prior year periods primarily related to increases in investment services and trust fees.

Operating expenses amounted to $14.1 million and $54.8 million, respectively, for the quarter and year ended December 31, 2005, as compared to $13.4 million and $48.8 million, respectively, for the corresponding prior year periods. The increases were partly due to the costs related to the acquisition of the consumer direct lending operation, as well as increased incentive plan costs.

Financial Condition

Loans receivable net, increased by $181.6 million, or 12.3%, at December 31, 2005 as compared to December 31, 2004. Deposits increased to $1,356.6 million at December 31, 2005 from $1,270.5 million at December 31, 2004, a 6.8% rate of growth. Core deposits (all deposits except time deposits) grew $72.5 million, or 9.1%.

Stockholders' equity increased by $828,000 to $138.8 million at December 31, 2005, as compared to $138.0 million at December 31, 2004. For the year ended December 31, 2005, 690,407 common shares were repurchased at a total cost of $16.0 million. Under the 10% repurchase program authorized by the Board of Directors in October 2003, 59,648 shares remain to be purchased as of December 31, 2005. A new repurchase program, the Company's twelfth, was announced on October 19, 2005. Under this 5% repurchase program, an additional 636,036 shares are available for repurchase. The reduction in stockholders' equity due to common stock repurchases was offset by current net income, proceeds from stock option exercises and related tax benefit, and Employee Stock Ownership Plan amortization.

Asset Quality

The Company's non-performing assets totaled $1.9 million at December 31, 2005 as compared to $3.8 million at December 31, 2004. For the year ended December 31, 2005 the Company realized net loan charge-offs of $578,000, a charge-off ratio of 4 basis points of average loans.

Election of Director

The Board of Directors elected Angelo Catania to serve as director for the unexpired term of former director James G. Kiley who resigned from the Board in July 2005. Mr. Catania holds a M.B.A. degree from St. John's University and a B.S. degree for St. Francis College. He has over 30 years experience in the home heating and oil services industry, most recently serving as President and Chief Operating Officer of Petro, Inc. in Stamford, Connecticut. He is currently President and CEO of HomeStar Services LLC, a consolidator of heating, cooling and plumbing services companies in New Jersey and New York. Mr. Catania and his wife Donna reside in Brielle, New Jersey.

John R. Garbarino, Chairman, President and Chief Executive Officer, commenting on today's announcement said, "We are pleased to have Angelo Catania on our Board of Directors and look forward to his advice and counsel. His financial expertise, acquired over his thirty plus year career, coupled with his knowledge of the Central Jersey Shore Market will be a valuable asset to our community-focused financial services organization."

Annual Meeting Date

The Company also announced today that its Annual Meeting of Stockholders will be held on April 20, 2006, at 10:00 a.m. Eastern Time, at Crystal Point Yacht Club located at 3900 River Road at the intersection of State Highway 70, Point Pleasant, New Jersey. The record date for shareholders entitled to vote at the Annual Meeting was set for March 6, 2006.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, January 20, 2006 at 11:00 a.m. Eastern time. The direct dial number for the call is (877) 407-8035. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (877) 660-6853, Account #286, Conference ID #186836, from one hour after the end of the call until midnight on Friday, January 27, 2006.

OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $2.0 billion in assets and eighteen branches located in Ocean, Monmouth and Middlesex counties, New Jersey. The Bank is the largest and oldest community-based financial institution headquartered in Ocean County, New Jersey.

OceanFirst Financial Corp.'s press releases are available at no charge by visiting us on the worldwide web at http://www.oceanfirst.com.

Forward-Looking Statements

This news release contains certain forward-looking statements 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," or similar expressions. 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 the subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, 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 and accounting principles and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake -- and specifically disclaims any obligation -- to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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


                                            December 31,  December 31,
                                                2005          2004
                                           -------------  ------------
ASSETS

Cash and due from banks                      $   31,108    $   74,021
Investment securities available for sale         83,861        83,960
Federal Home Loan Bank of New York
  stock, at cost                                 21,792        21,250
Mortgage-backed securities available for
 sale                                            85,025       124,478
Loans receivable, net                         1,654,544     1,472,907
Mortgage loans held for sale                     32,044        63,961
Interest and dividends receivable                 7,089         6,033
Real estate owned, net                              278           288
Premises and equipment, net                      16,118        16,037
Servicing asset                                   9,730         8,790
Bank Owned Life Insurance                        36,002        34,990
Intangible Assets                                 1,272         1,376
Other assets                                      6,494         6,184
                                            ------------  ------------
      Total assets                           $1,985,357    $1,914,275
                                            ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits                                     $1,356,568    $1,270,535
Securities sold under agreements to
 repurchase with retail customers                54,289        45,072
Securities sold under agreements to
 repurchase with the Federal Home
 Loan Bank                                       59,000       106,000
Federal Home Loan Bank advances                 354,900       312,000
Subordinated debenture                            5,000             -
Advances by borrowers for taxes and
 insurance                                        7,699         6,289
Other liabilities                                 9,117        36,423
                                            ------------  ------------
      Total liabilities                       1,846,573     1,776,319
                                            ------------  ------------

Stockholders' equity:
   Preferred stock, $.01 par value,
    5,000,000 shares authorized, no
    shares issued                                     -             -
   Common stock, $.01 par value,
    55,000,000 shares authorized,
    27,177,372 shares issued and
    12,698,505, and 13,024,204
    shares outstanding at December 31,
    2005 and 2004, respectively                     272           272
   Additional paid-in capital                   197,621       193,723
   Retained earnings                            164,613       157,575
   Accumulated other comprehensive loss          (1,223)         (667)
   Less: Unallocated common stock held by
          Employee Stock Ownership Plan          (7,472)       (8,652)
         Treasury stock, 14,478,867 and
          14,153,168 shares at December 31,
          2005 and 2004, respectively          (215,027)     (204,295)
  Common stock acquired by Deferred
   Compensation Plan                              1,383           986
  Deferred Compensation Plan Liability           (1,383)         (986)
                                            ------------  ------------
         Total stockholders' equity             138,784       137,956
                                            ------------  ------------
         Total liabilities and
          stockholders' equity               $1,985,357    $1,914,275
                                            ============  ============



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

                           For the three months      For the years
                            ended December 31,      ended December 31,
                               2005     2004         2005      2004
                           --------------------    -------------------
                               (Unaudited)
Interest income:
  Loans                      $ 25,112 $ 21,645     $ 93,864  $ 83,594
  Mortgage-backed securities      854    1,143        3,813     4,363
  Investment securities and
   other                        1,323      801        5,122     2,995
                             -------- --------     --------  --------
      Total interest income    27,289   23,589      102,799    90,952
                             -------- --------     --------  --------
Interest expense:
  Deposits                      6,733    4,270       22,807    15,194
  Borrowed funds                5,146    4,837       19,066    19,737
                             -------- --------     --------  --------
      Total interest expense   11,879    9,107       41,873    34,931
                             -------- --------     --------  --------
      Net interest income      15,410   14,482       60,926    56,021

Provision for loan losses           -      150          350       300
                             -------- --------     --------  --------
      Net interest income
       after provision for
       loan losses             15,410   14,332       60,576    55,721
                             -------- --------     --------  --------
Other income:
  Loan servicing income           131       57          280       328
  Fees and service charges      2,459    2,118        9,434     8,289
  Net gain on sales of loans
   and securities available
   for sale                     3,104    4,060       13,183    10,832
  Income from Bank Owned
   Life Insurance                 267      351        1,122     1,256
  Other                            23       21           71        35
                             -------- --------     --------  --------
  Total other income            5,984    6,607       24,090    20,740
                             -------- --------     --------  --------
Operating expenses:
  Compensation and employee
   benefits                     7,965    7,446       31,184    27,242
  Occupancy                     1,254    1,083        4,539     3,840
  Equipment                       597      598        2,531     2,341
  Marketing                       702      772        2,914     2,020
  Federal deposit insurance       128      120          507       478
  Data processing                 830      736        3,243     2,959
  General and administrative    2,640    2,619        9,916     9,879
                             -------- --------     --------  --------
     Total operating
      expenses                 14,116   13,374       54,834    48,759
                             -------- --------     --------  --------
     Income before provision
      for income taxes          7,278    7,565       29,832    27,702
Provision for income taxes      2,432    2,572       10,335     9,757
                             -------- --------     --------  --------
      Net income             $  4,846 $  4,993     $ 19,497  $ 17,945
                             ======== ========     ========  ========
Basic earnings per share     $   0.41 $   0.42     $   1.65  $   1.48
                             ======== ========     ========  ========
Diluted earnings per share   $   0.40 $   0.40     $   1.60  $   1.42
                             ======== ========     ========  ========
Average basic shares
 outstanding                   11,737   12,016       11,786    12,108
                             ======== ========     ========  ========
Average diluted shares
 outstanding                   12,148   12,610       12,219    12,666
                             ======== ========     ========  ========
Cash earnings (1)            $  5,598 $  5,957     $ 22,479  $ 21,294
                             ======== ========     ========  ========
Diluted cash earnings per
 share                       $   0.46 $   0.47     $   1.84  $   1.68
                             ======== ========     ========  ========

(1) Cash earnings are determined by adding (net of taxes) to reported
    earnings the non-cash expenses stemming from the amortization
    and appreciation of allocated shares in the company's
    stock-related benefit plans and the amortization of intangible
    assets.



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

                                                 At            At
                                            December 31,  December 31,
                                                2005          2004
                                            ------------ -------------

STOCKHOLDERS' EQUITY
--------------------

Stockholders' equity to total assets               6.99%        7.21%
Common shares outstanding (in thousands)         12,699       13,024
Stockholders' equity per common share            $10.93       $10.59
Tangible stockholders' equity per common
 share                                            10.83        10.49

ASSET QUALITY
-------------

Allowance for loan losses                       $10,460      $10,688
Nonperforming loans                               1,595        3,488
Nonperforming assets                              1,873        3,776
Allowance for loan losses as a percent of
 total loans receivable                           0.62%        0.69%
Allowance for loan losses as a percent of
 nonperforming loans                             655.80       306.42
Nonperforming loans as a percent of
 total loans receivable                            0.09         0.23
Nonperforming assets as a percent of total
 assets                                            0.09         0.20


                               For the three         For the years
                                months ended             ended
                                December 31           December 31
                             -------------------   ------------------
                                2005      2004        2005     2004
                             --------- ---------   --------- --------
PERFORMANCE RATIOS
(ANNUALIZED)
------------

Return on average assets         0.97%     1.05%     1.00%      0.98%
Return on average
 stockholders' equity           14.30     14.73     14.43      13.34
Interest rate spread             3.00      3.03      3.07       3.03
Interest rate margin             3.24      3.23      3.30       3.23
Operating expenses to average
 assets                          2.82      2.82      2.81       2.67
Efficiency ratio                65.98     63.42     64.50      63.52

CASH EARNINGS
-------------
Although reported earnings and return on stockholders' equity are
traditional measures of performance, the Company believes that the
change in stockholders' equity or "cash earnings," and related return
measures are also a significant measure of a company's performance.
Cash earnings exclude the effects of various non-cash expenses, such
as the employee stock plans amortization expense and related tax
benefit, as well as the amortization of intangible assets. The
following table reconciles the Company's net income with cash
earnings. The table is a pro forma calculation which is not in
accordance with GAAP.

                                For the three        For the years
                                 months ended            ended
                                  December 31         December 31
                              ---------------------------------------
                                 2005      2004      2005      2004
                              --------- --------- --------- ----------

Net income                     $ 4,846   $ 4,993   $19,497    $17,945
Add: Employee stock plans
      amortization expense         847     1,128     3,374      3,792
     Amortization of
      intangible assets             26        26       103        105
Less: Tax benefit (1)             (121)     (190)     (495)      (548)
                              --------- --------- --------- ----------
      Cash earnings            $ 5,598   $ 5,957   $22,479    $21,294
                              ========= ========= ========= ==========
Basic cash earnings per share  $  0.48   $  0.50   $  1.91    $  1.76
                              ========= ========= ========= ==========
Diluted cash earnings per
 share                         $  0.46   $  0.47   $  1.84    $  1.68
                              ========= ========= ========= ==========

(1) The Company does not receive any tax benefit for that portion of
    employee stock plan amortization expense relating to the ESOP
    fair market value adjustment.



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

LOANS RECEIVABLE
----------------
                                                 At            At
                                            December 31,  December 31,
                                                2005          2004
                                            ------------  ------------
Real estate:
    One- to four-family                      $1,187,226    $1,126,585
    Commercial real estate, multi-
     family and land                            278,922       243,299
    Construction                                 22,739        19,189
Consumer                                        146,911        99,279
Commercial                                       64,300        61,290
                                            ------------  ------------
        Total loans                           1,700,098     1,549,642

    Loans in process                             (7,646)       (5,970)
    Deferred origination costs, net               4,596         3,888
    Unearned discount                                 -            (4)
    Allowance for loan losses                   (10,460)      (10,688)
                                            ------------  ------------
    Total loans, net                          1,686,588     1,536,868

Less: mortgage loans held for sale               32,044        63,961
                                            ------------  ------------
        Loans receivable, net                $1,654,544    $1,472,907
                                            ============  ============
Mortgage loans serviced for others           $  910,272    $  805,375
Loan pipeline                                   293,934       250,657


                             For the three         For the years
                              months ended             ended
                              December 31,          December 31,
                          -------------------  ----------------------
                             2005      2004       2005        2004
                          ---------  --------  ---------- -----------


Loan originations          $288,148  $305,996  $1,303,754  $1,022,735
Loans sold                  173,251   183,773     711,952     499,232
Net charge-offs (recovery)      (50)      337         578         414


DEPOSITS
--------
                                   At December 31,    At December 31,
                                        2005              2004
                                   ---------------    ---------------
Type of Account
---------------
Non-interest bearing                $  120,188          $  106,492
Interest-bearing checking              381,787             297,919
Money market deposit                   125,169             142,893
Savings                                242,689             250,032
Time deposits                          486,735             473,199
                                   ------------        ------------
                                    $1,356,568          $1,270,535
                                   ============        ============



                      OceanFirst Financial Corp.
                    ANALYSIS OF NET INTEREST INCOME


                                   FOR THE QUARTERS ENDED DECEMBER 31,
                                   -----------------------------------
                                                   2005
                                   -----------------------------------
                                      AVERAGE    INTEREST    AVERAGE
                                      BALANCE                 YIELD/
                                                               COST
                                   -----------------------------------
                                          (Dollars in thousands)
Assets
Interest-earnings assets:
  Interest-earning deposits
   and short-term investments            $8,122        $80       3.94%
  Investment securities (1)              84,962        984       4.63
  FHLB stock                             20,650        259       5.02
  Mortgage-backed securities (1)         90,896        854       3.76
  Loans receivable, net (2)           1,696,560     25,112       5.92
                                   ------------- ---------- ----------
    Total interest-earning assets     1,901,190     27,289       5.74
                                                 ---------- ----------
Non-interest-earning assets             100,693
                                   -------------
    Total assets                     $2,001,883
                                   =============
Liabilities and Stockholders'
 Equity
Interest-bearing liabilities:
  Transaction deposits                 $774,248      2,610       1.35
  Time deposits                         487,421      4,123       3.38
                                   ------------- ---------- ----------
    Total                             1,261,669      6,733       2.13
  Borrowed funds                        472,667      5,146       4.35
                                   ------------- ---------- ----------
    Total interest-bearing
     liabilities                      1,734,336     11,879       2.74
                                                 ---------- ----------
Non-interest-bearing deposits           119,374
Non-interest-bearing liabilities         12,661
                                   -------------
    Total liabilities                 1,866,371
Stockholders' equity                    135,512
                                   -------------
    Total liabilities and
     stockholders' equity            $2,001,883
                                   =============
Net interest income                                $15,410
                                                ===========
Net interest rate spread (3)                                     3.00%
                                                           ===========
Net interest margin (4)                                          3.24%
                                                           ===========


                                  FOR THE QUARTERS ENDED DECEMBER 31,
                                  ------------------------------------
                                                  2004
                                  ------------------------------------
                                      AVERAGE    INTEREST    AVERAGE
                                      BALANCE                 YIELD/
                                                               COST
                                  ------------------------------------
                                         (Dollars in thousands)
Assets
Interest-earnings assets:
  Interest-earning deposits
   and short-term investments           $20,934       $102       1.95%
  Investment securities (1)              84,809        570       2.69
  FHLB stock                             21,859        129       2.36
  Mortgage-backed securities (1)        131,774      1,143       3.47
  Loans receivable, net (2)           1,534,254     21,645       5.64
                                   ------------ ---------- -----------
    Total interest-earning assets     1,793,630     23,589       5.26
                                                ---------- -----------
Non-interest-earning assets             100,292
                                   ------------
    Total assets                     $1,893,922
                                   ============
Liabilities and Stockholders'
 Equity
Interest-bearing liabilities:
  Transaction deposits                 $703,353      1,250       0.71
  Time deposits                         454,599      3,020       2.66
                                   ------------ ---------- -----------
    Total                             1,157,952      4,270       1.48
  Borrowed funds                        475,158      4,837       4.07
                                   ------------ ---------- -----------
    Total interest-bearing
     liabilities                      1,633,110      9,107       2.23
                                                ---------- -----------
Non-interest-bearing deposits           111,988
Non-interest-bearing liabilities         13,262
                                   ------------
    Total liabilities                 1,758,360
Stockholders' equity                    135,562
                                   ------------
    Total liabilities and
     stockholders' equity            $1,893,922
                                   ============
Net interest income                                $14,482
                                                ==========
Net interest rate spread (3)                                     3.03%
                                                           ===========
Net interest margin (4)                                          3.23%
                                                           ===========


                                    FOR THE YEARS ENDED DECEMBER 31,
                                   -----------------------------------
                                                  2005
                                   -----------------------------------
                                      AVERAGE    INTEREST    AVERAGE
                                      BALANCE                 YIELD/
                                                               COST
                                   -----------------------------------
                                         (Dollars in thousands)
Assets
Interest-earnings assets:
  Interest-earning deposits
   and short-term investments           $10,796       $344       3.19%
  Investment securities (1)              85,942      3,871       4.50
  FHLB stock                             20,105        907       4.51
  Mortgage-backed securities (1)        106,148      3,813       3.59
  Loans receivable, net (2)           1,624,761     93,864       5.78
                                   ------------- ---------- ----------
    Total interest-earning assets     1,847,752    102,799       5.56
                                                 ---------- ----------
Non-interest-earning assets             101,357
                                   -------------
    Total assets                     $1,949,109
                                   =============
Liabilities and Stockholders'
 Equity
Interest-bearing liabilities:
  Transaction deposits                 $747,401      8,136       1.09
  Time deposits                         481,585     14,671       3.05
                                   ------------- ---------- ----------
    Total                             1,228,986     22,807       1.86
  Borrowed funds                        454,806     19,066       4.19
                                   ------------- ---------- ----------
    Total interest-bearing
     liabilities                      1,683,792     41,873       2.49
                                                ----------- ----------
Non-interest-bearing deposits           115,681
Non-interest-bearing liabilities         14,499
                                   -------------
    Total liabilities                 1,813,972
Stockholders' equity                    135,137
                                   -------------
    Total liabilities and
     stockholders' equity            $1,949,109
                                   =============
Net interest income                                $60,926
                                                ===========
Net interest rate spread (3)                                     3.07%
                                                           ===========
Net interest margin (4)                                          3.30%
                                                           ===========


                                    FOR THE YEARS ENDED DECEMBER 31,
                                  ------------------------------------
                                                   2004
                                   -----------------------------------
                                      AVERAGE    INTEREST    AVERAGE
                                      BALANCE                 YIELD/
                                                               COST
                                  ------------------------------------
                                         (Dollars in thousands)
Assets
Interest-earnings assets:
  Interest-earning deposits
   and short-term investments           $14,527       $190       1.31%
  Investment securities (1)              85,258      2,400       2.81
  FHLB stock                             22,357        405       1.81
  Mortgage-backed securities (1)        130,749      4,363       3.34
  Loans receivable, net (2)           1,479,504     83,594       5.65
                                   ------------- ---------- ----------
    Total interest-earning assets     1,732,395     90,952       5.25
                                                 ---------- ----------
Non-interest-earning assets              97,072
                                   -------------
    Total assets                     $1,829,467
                                   =============
Liabilities and Stockholders'
 Equity
Interest-bearing liabilities:
  Transaction deposits                 $678,273      4,216       0.62
  Time deposits                         414,393     10,978       2.65
                                   ------------- ---------- ----------
    Total                             1,092,666     15,194       1.39
  Borrowed funds                        478,740     19,737       4.12
                                   ------------- ---------- ----------
    Total interest-bearing
     liabilities                      1,571,406     34,931       2.22
                                                ----------- ----------
Non-interest-bearing deposits           111,135
Non-interest-bearing liabilities         12,378
                                   -------------
    Total liabilities                 1,694,919
Stockholders' equity                    134,548
                                   -------------
    Total liabilities and
     stockholders' equity            $1,829,467
                                   =============
Net interest income                                $56,021
                                                ===========
Net interest rate spread (3)                                     3.03%
                                                            ==========
Net interest margin (4)                                          3.23%
                                                            ==========

(1)  Amounts are recorded at average amortized cost.
(2)  Amount is net of deferred loan fees, undisbursed loan funds,
     discounts and premiums and estimated loss allowances 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.
    CONTACT: OceanFirst Financial Corp.Michael J. Fitzpatrick, 732-240-4500, ext. 7506
             Fax: 732-349-5070
             [email protected]

    SOURCE: OceanFirst Financial Corp.