TOMS RIVER, N.J.--(BUSINESS WIRE)--
OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for
OceanFirst Bank, today announced that diluted earnings per share for
the quarter ended June 30, 2007 amounted to $.02 as compared to $.41
for the corresponding prior year period. For the six months ended June
30, 2007 the loss per share was $.45 as compared to diluted earnings
per share of $.77 for 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 June 30, 2007 - to be paid on August 17, 2007, to
shareholders of record on August 3, 2007.
During the quarter, the Bank agreed to discontinue operations at
the Westchester County, New York office of Columbia Home Loans, LLC
("Columbia"), the Bank's mortgage banking subsidiary. The Bank is
retaining Columbia's loan servicing portfolio and two small loan
production offices, which will be incorporated into the Bank's lending
operations. This planned shutdown was the result of the significant
operating losses incurred by Columbia in the past two quarters related
to their origination of subprime mortgage loans. The loan production
offices retained by the Bank were not heavily involved in subprime
lending operations, which were discontinued Bank-wide during the first
quarter. For the three and six months ended June 30, 2007, Columbia
recorded a net loss of $4.2 million and $12.6 million, respectively.
Absent the closure, the Company expected Columbia to continue to incur
operating losses for the foreseeable future. The elimination of
Columbia's Westchester Headquarters operation is planned to be
completed by September 30, 2007, although a portion of the revenue and
expenses related to the retained loan servicing portfolio and loan
production offices are expected to continue.
Discussing the improved results from the quarter, CEO John R.
Garbarino commented on the welcome return to profitability and
expressed confidence that the previous subprime lending losses at
Columbia had been recognized, contained and provided for. "The
Company's return to profitability over the past three months
demonstrates the resilience of our core banking operations after
accounting for the Columbia subprime losses and associated expenses."
Mr. Garbarino continued, "I am also pleased to announce our
forty-second consecutive quarterly cash dividend, reflective of our
confidence in the future performance of the Company."
Results of Operations
Net interest income for the three and six months ended June 30,
2007 decreased to $12.7 million and $27.1 million, respectively, as
compared to $14.4 million and $29.8 million, respectively, in the same
prior year periods, reflecting a lower net interest margin and, for
the three months ended June 30, 2007, lower levels of average
interest-earning assets. The net interest margin decreased to 2.64%
and 2.79%, respectively, for the three and six months ended June 30,
2007 from 2.96% and 3.10%, respectively, in the same prior year
periods. The yield on interest-earning assets increased to 5.94% and
6.07%, respectively, for the three and six months ended June 30, 2007,
as compared to 5.86% for the same prior year periods. The cost of
interest-bearing liabilities increased, however, to 3.59% and 3.58%,
respectively, for the three and six months ended June 30, 2007, as
compared to 3.19% and 3.03%, respectively, in the same prior year
periods. Average interest-earning assets decreased by $26.4 million
for the three months ended June 30, 2007, as compared to the same
prior year period. For the six months ended June 30, 2007 average
interest-earning assets increased $17.6 million as compared to the
same prior year period.
Other income decreased to $225,000 for the three months ended June
30, 2007 and a loss of $6.1 million for the six months ended June 30,
2007, as compared to other income of $6.5 million and $11.0 million,
respectively, in the same prior year periods. For the three and six
months ended June 30, 2007, the Company recorded losses of $3.2
million and $12.8 million, respectively, on the sale of loans and
lower of cost or market adjustment, as compared to gains of $3.3
million and $5.0 million, respectively, in the same prior year
periods. The losses relate to the origination of subprime mortgage
loans by Columbia. These loans were originated for sale to investors,
however, some loans were not able to be sold as planned and remained
in inventory. Columbia was able to subsequently sell most of these
loans in a bulk sale transaction during the second quarter. Included
in the bulk sale were subprime loans with a stated principal balance
of $42.6 million for which Columbia recognized a loss on sale, net of
reserves, of $1.3 million. Additionally, included in the loss on sale
of loans for the three and six months ended June 30, 2007 are
mark-to-market charges of $2.3 million and $9.4 million, respectively,
incurred by Columbia to reduce loans held for sale to their current
fair market value.
Columbia has also established a reserve for repurchased loans to
account for Columbia's obligation to repurchase loans which
experienced an "early payment default," defined as the failure by the
borrower to make a payment within a designated period early in the
loan term. In July 2006, Columbia renegotiated and tightened investor
loan sale agreements to generally define early payment default as the
failure of the borrower to make the first payment following sale of
the loan. In addition to early payment defaults, Columbia must also
repurchase a loan in the event of a breach of a representation or
warranty or a misrepresentation during the loan origination process.
The early payment defaults primarily relate to subprime mortgage
loans, especially those with 100% financing relative to the value of
the underlying property. In March 2007, the Company discontinued the
origination of all subprime loans. There was no provision for
repurchased loans for the quarter ended June 30, 2007. For the six
months ended June 30, 2007 the provision for repurchased loans was
$4.0 million which is included as part of the gain (loss) on sale of
loans.
The reserve for repurchased loans, which is included in other
liabilities in the Company's consolidated statement of financial
condition, was $5.4 million at June 30, 2007 and outstanding loan
repurchase requests totaled $13.2 million at the same date. This
compares to a reserve for repurchased loans of $9.8 million at March
31, 2007 and outstanding loan repurchase requests of $40.5 million.
The reserve for repurchased loans is established to provide for
expected losses related to outstanding loan repurchase requests and
additional repurchase requests which may be received on loans
previously sold to investors.
Since March 31, 2007, the Company has negotiated numerous cash
payment settlements for repurchase claims without the requirement to
repurchase the subprime loans. After repurchasing a principal balance
of $13.9 million in subprime loans during the first quarter of 2007,
Columbia repurchased only $1.0 million in the second quarter of 2007.
Additionally, for the period May 1 through July 27, 2007, the Company
has received only two valid claims for repurchase for a total of
$370,000 in loan principal. At June 30, 2007, Columbia was holding
subprime loans with a gross principal balance of $7.8 million and a
carrying value, net of reserves, of $4.9 million.
Fees and service charges increased $154,000, or 5.4%, and
$604,000, or 11.7%, for the three and six months ended June 30, 2007,
respectively, as compared to the same prior year period primarily
related to increased fees from trust services and checking accounts.
Operating expenses amounted to $13.7 million and $28.8 million,
respectively, for the three and six months ended June 30, 2007, as
compared to $13.5 million and $26.7 million, respectively, for the
corresponding prior year periods. The increase in operating expenses
was due to the cost of three new branches, higher professional fees
and total severance costs of $778,000; $404,000 incurred at Columbia
and $374,000 incurred by the Bank. Also, general and administrative
expense for the six months ended June 30, 2007 includes $1.0 million
relating to the write-off of the previously established goodwill on
the August, 2000 acquisition of Columbia.
The Company recorded tax benefits of $1.2 million and $3.2 million
for the three and six months ended June 30, 2007. Tax benefits were
determined based on an estimated annual effective tax rate, however,
in the second quarter of 2007 it was determined that the actual
effective tax rate for the year-to-date period was the best estimate
of the annual effective tax rate.
Financial Condition
Mortgage loans held for sale decreased by $68.0 million at June
30, 2007 as compared to December 31, 2006 due to reduced loan
origination volume at Columbia. Deposits decreased to $1,306.9 million
at June 30, 2007 from $1,372.3 million at December 31, 2006 as the
Bank moderated its pricing relating to certificates of deposit. Total
Federal Home Loan Bank borrowings decreased by $35.5 million to $429.0
million at June 30, 2007, as compared to $464.5 million at December
31, 2006 due to the lower loan balances. Additionally, during the
quarter ended June 30, 2007, the Company issued $10.0 million of Trust
Preferred Securities to provide additional liquidity at the holding
company.
Stockholders' equity decreased by $8.6 million to $123.7 million
at June 30, 2007, as compared to $132.3 million at December 31, 2006.
For the six months ended June 30, 2007, 49,701 common shares were
repurchased at a total cost of $1.1 million. All of these shares were
repurchased in the first quarter of 2007. Under the 5% repurchase
program authorized by the Board of Directors in July 2006, 489,062
shares remain to be purchased as of June 30, 2007. Stockholders'
equity was further reduced by the net loss and the cash dividend.
Asset Quality
The Company's non-performing assets totaled $11.9 million at June
30, 2007, an increase from $4.8 million at December 31, 2006. The June
30, 2007 amount includes $1.2 million of loans repurchased by Columbia
due to early payment default. These loans were written down to market
value on the date of repurchase, which included an assessment of each
loan's credit impairment. As a result, these loans do not require an
adjustment to the allowance for loan losses. For the six months ended
June 30, 2007 the Company realized a net loan charge-off of $69,000.
Conference Call
As previously announced, the Company will host an earnings
conference call on Monday, July 30, 2007 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#248305, from one hour after the end of the call until
midnight on Monday, August 6, 2007.
OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank, founded
in 1902, is a federally-chartered stock savings bank with $2.0 billion
in assets and twenty 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)
June 30, December 31, June 30,
2007 2006 2006
------------ ------------ ------------
(Unaudited) (Unaudited)
ASSETS
------------------------------
Cash and due from banks $ 28,346 $ 32,204 $ 33,211
Investment securities
available for sale 66,813 82,384 84,265
Federal Home Loan Bank of New
York stock, at cost 24,073 25,346 25,694
Mortgage-backed securities
available for sale 61,336 68,369 74,374
Loans receivable, net 1,698,515 1,701,425 1,741,230
Mortgage loans held for sale 14,975 82,943 62,282
Interest and dividends
receivable 7,920 8,083 7,559
Real estate owned, net 329 288 225
Premises and equipment, net 17,684 18,196 17,072
Servicing asset 9,650 9,787 9,537
Bank Owned Life Insurance 37,763 37,145 36,551
Intangible Assets 48 1,114 1,221
Other assets 10,310 9,718 7,524
---------- ----------- ----------
Total assets $ 1,977,762 $ 2,077,002 $ 2,100,745
========== =========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
------------------------------
Deposits $ 1,306,893 $ 1,372,328 $ 1,377,935
Securities sold under
agreements to repurchase with
retail customers 69,823 50,982 59,529
Securities sold under
agreements to repurchase with
the Federal Home Loan Bank 13,000 34,000 44,000
Federal Home Loan Bank
advances 416,000 430,500 450,000
Other Borrowings 28,200 17,500 11,100
Advances by borrowers for
taxes and insurance 9,000 7,743 9,608
Other liabilities 11,172 31,629 14,539
---------- ----------- ----------
Total liabilities 1,854,088 1,944,682 1,966,711
---------- ----------- ----------
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
12,319,120, 12,262,307,
and 12,317,657 shares
outstanding at June 30,
2007, December 31, 2006
and June 30, 2006,
respectively 272 272 272
Additional paid-in capital 202,841 201,936 199,680
Retained earnings 153,584 164,121 167,535
Accumulated other
comprehensive loss (802) (470) (1,560)
Less: Unallocated common
stock held by Employee
Stock Ownership Plan (5,864) (6,369) (6,920)
Treasury stock,
14,858,252,
14,915,065 and
14,859,715 shares at
June 30, 2007,
December 31, 2006
and June 30, 2006,
respectively (226,357) (227,170) (224,973)
Common stock acquired by
Deferred Compensation Plan 1,588 1,457 1,504
Deferred Compensation Plan
Liability (1,588) (1,457) (1,504)
---------- ----------- ----------
Total stockholders'
equity 123,674 132,320 134,034
---------- ----------- ----------
Total liabilities
and stockholders'
equity $ 1,977,762 $ 2,077,002 $ 2,100,745
========== =========== ==========
OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the three
months For the six months
ended June 30, ended June 30,
------------------ ------------------
2007 2006 2007 2006
------------------ ------------------
(Unaudited) (Unaudited)
Interest income:
Loans $ 26,239 $ 26,207 $ 53,583 $ 51,227
Mortgage-backed securities 714 831 1,438 1,705
Investment securities and
other 1,600 1,530 3,904 3,422
--------- -------- --------- --------
Total interest income 28,553 28,568 58,925 56,354
--------- -------- --------- --------
Interest expense:
Deposits 9,123 8,021 18,452 15,101
Borrowed funds 6,731 6,136 13,365 11,425
--------- -------- --------- --------
Total interest expense 15,854 14,157 31,817 26,526
--------- -------- --------- --------
Net interest income 12,699 14,411 27,108 29,828
Provision for loan losses 110 - 450 50
--------- -------- --------- --------
Net interest income after
provision for loan losses 12,589 14,411 26,658 29,778
--------- -------- --------- --------
Other income (loss):
Loan servicing income 108 147 230 273
Fees and service charges 2,984 2,830 5,782 5,178
Net (loss) gain and lower of
cost or market adjustment on
sales of loans and securities
available for sale (3,248) 3,280 (12,832) 4,959
Net income from other real
estate operations 38 - 19 -
Income from Bank Owned Life
Insurance 313 280 618 548
Other 30 4 35 10
--------- -------- --------- --------
Total other income (loss) 225 6,541 (6,148) 10,968
--------- -------- --------- --------
Operating expenses:
Compensation and employee
benefits 7,612 7,877 15,471 15,255
Occupancy 1,252 1,136 2,458 2,320
Equipment 535 582 1,088 1,208
Marketing 370 391 686 699
Federal deposit insurance 141 134 277 267
Data processing 859 805 1,765 1,710
General and administrative 2,975 2,610 7,089 5,252
--------- -------- --------- --------
Total operating expenses 13,744 13,535 28,834 26,711
--------- -------- --------- --------
(Loss) income before
(benefit) provision for
income taxes (930) 7,417 (8,324) 14,035
(Benefit) provision for income
taxes (1,207) 2,565 (3,179) 4,869
--------- -------- --------- --------
Net income (loss) $ 277 $ 4,852 $ (5,145) $ 9,166
========= ======== ========= ========
Basic earnings (loss) per share $ 0.02 $ 0.42 $ (0.45) $ 0.79
========= ======== ========= ========
Diluted earnings (loss) per
share $ 0.02 $ 0.41 $ (0.45) $ 0.77
========= ======== ========= ========
Average basic shares outstanding 11,520 11,518 11,503 11,619
========= ======== ========= ========
Average diluted shares
outstanding 11,607 11,831 11,503 11,956
========= ======== ========= ========
Cash earnings (loss) (1) $ 815 $ 5,625 $ (3,323) $ 10,651
========= ======== ========= ========
Diluted cash earnings (loss) per
share $ 0.07 $ 0.48 $ (0.29) $ 0.89
========= ======== ========= ========
(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 June 30, At December 31, At June 30,
2007 2006 2006
------------ --------------- -----------
STOCKHOLDERS' EQUITY
--------------------------
Stockholders' equity to
total assets 6.25% 6.37% 6.38%
Common shares outstanding
(in thousands) 12,319 12,262 12,318
Stockholders' equity per
common share $10.04 $10.79 $10.88
Tangible stockholders'
equity per common share 10.04 10.70 10.78
ASSET QUALITY
--------------------------
Allowance for loan losses $10,619 $10,238 $10,686
Nonperforming loans 11,527 (1) 4,525 1,799
Nonperforming assets 11,856 (1) 4,813 2,024
Allowance for loan losses
as a percent of total
loans receivable 0.62% 0.57% 0.59%
Allowance for loan losses
as a percent of
nonperforming loans 92.12 226.25 594.00
Nonperforming loans as a
percent of total loans
receivable 0.67 0.25 0.10
Nonperforming assets as a
percent of total assets 0.60 0.23 0.10
(1) Includes $1.2 million of repurchased loans which have been written
down to their fair market value.
For the three For the six
months ended months ended
June 30, June 30,
----------------- -----------------
2007 2006 2007 2006
-------- -------- -------- --------
PERFORMANCE RATIOS (ANNUALIZED)
-----------------------------------
Return on average assets 0.05% 0.95% (0.50)% 0.91%
Return on average stockholders'
equity 0.90 14.61 (8.10) 13.61
Interest rate spread 2.35 2.67 2.49 2.83
Interest rate margin 2.64 2.96 2.79 3.10
Operating expenses to average
assets 2.71 2.65 2.83 2.65
Efficiency ratio 106.34 64.60 137.57 65.47
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 months For the six months
ended ended
June 30, June 30,
-------------------------------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Net income (loss) $ 277 $ 4,852 $(5,145) $ 9,166
Add: Employee stock plans
amortization Expense 654 919 1,385 1,720
Amortization of
intangible assets 26 26 1,065 52
Less: Tax benefit (2) (142) (172) (628) (287)
---------- ---------- ---------- ----------
Cash earnings (loss) $ 815 $ 5,625 $(3,323) $10,651
========== ========== ========== ==========
Basic cash earnings (loss)
per share $ 0.07 $ 0.49 $ (0.29) $ 0.92
========== ========== ========== ==========
Diluted cash earnings
(loss) per share $ 0.07 $ 0.48 $ (0.29) $ 0.89
========== ========== ========== ==========
(2) 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 June 30, 2007 At December 31, 2006
----------------- --------------------
Real estate:
One- to four-family $ 1,135,513 $ 1,231,716
Commercial real
estate, multi-family
and land 329,495 306,288
Construction 11,401 13,475
Consumer 202,657 190,029
Commercial 42,886 49,693
---------------- -------------------
Total loans 1,721,952 1,791,201
Loans in process (3,035) (2,318)
Deferred origination
costs, net 5,192 5,723
Allowance for loan
losses (10,619) (10,238)
---------------- -------------------
Total loans,
net 1,713,490 1,784,368
Less: mortgage loans held for
sale 14,975 82,943
---------------- -------------------
Loans
receivable,
net $ 1,698,515 $ 1,701,425
================ ===================
Mortgage loans serviced for
others $ 1,033,988 $ 992,658
Loan pipeline 135,416 294,646
For the three months ended For the six months ended
June 30, June 30,
-------------------------- -------------------------
2007 2006 2007 2006
------------ ------------- ------------ ------------
Loan originations $ 179,413 $ 356,651 $ 446,559 $ 594,640
Loans sold 134,559 164,063 295,811 259,798
Net charge-offs
(recovery) 68 (172) 69 (176)
DEPOSITS
----------------------------
At June 30, 2007 At December 31, 2006
-------------------- --------------------
Type of Account
----------------------------
Non-interest bearing $ 118,823 $ 114,950
Interest-bearing checking 404,297 408,666
Money market deposit 92,723 105,571
Savings 197,553 200,544
Time deposits 493,497 542,597
------------------- -------------------
$ 1,306,893 $ 1,372,328
=================== ===================
OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
FOR THE QUARTERS ENDED JUNE 30,
-------------------------------
2007
-----------------------------
AVERAGE
AVERAGE YIELD/
BALANCE INTEREST COST
-------------------------------
(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and short-
term investments $ 8,080 $ 105 5.20%
Investment securities (1) 71,673 1,018 5.68
FHLB stock 25,540 477 7.47
Mortgage-backed securities (1) 63,936 714 4.47
Loans receivable, net (2) 1,754,821 26,239 5.98
----------- --------- -------
Total interest-earning assets 1,924,050 28,553 5.94
--------- -------
Non-interest-earning assets 102,469
-----------
Total assets $ 2,026,519
===========
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Transaction deposits $ 720,363 3,622 2.01
Time deposits 496,341 5,501 4.43
----------- --------- -------
Total 1,216,704 9,123 3.00
Borrowed funds 550,029 6,731 4.90
----------- --------- -------
Total interest-bearing liabilities 1,766,733 15,854 3.59
--------- -------
Non-interest-bearing deposits 115,996
Non-interest-bearing liabilities 20,281
-----------
Total liabilities 1,903,010
Stockholders' equity 123,509
-----------
Total liabilities and
stockholders' equity $ 2,026,519
===========
Net interest income $ 12,699
=========
Net interest rate spread (3) 2.35%
=======
Net interest margin (4) 2.64%
=======
FOR THE QUARTERS ENDED JUNE 30,
--------------------------------
2006
--------------------------------
AVERAGE
AVERAGE YIELD/
BALANCE INTEREST COST
--------------------------------
(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and
short-term investments $ 8,898 $ 109 4.90%
Investment securities (1) 84,894 1,130 5.32
FHLB stock 24,411 291 4.77
Mortgage-backed securities (1) 79,710 831 4.17
Loans receivable, net (2) 1,752,543 26,207 5.98
------------ --------- ---------
Total interest-earning assets 1,950,456 28,568 5.86
--------- ---------
Non-interest-earning assets 96,101
------------
Total assets $ 2,046,557
============
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Transaction deposits $ 707,409 2,793 1.58
Time deposits 538,382 5,228 3.88
------------ --------- ---------
Total 1,245,791 8,021 2.58
Borrowed funds 526,889 6,136 4.66
------------ --------- ---------
Total interest-bearing
liabilities 1,772,680 14,157 3.19
--------- ---------
Non-interest-bearing deposits 130,568
Non-interest-bearing liabilities 10,445
------------
Total liabilities 1,913,693
Stockholders' equity 132,864
------------
Total liabilities and
stockholders' equity $ 2,046,557
============
Net interest income $ 14,411
=========
Net interest rate spread (3) 2.67%
=========
Net interest margin (4) 2.96%
=========
FOR THE SIX MONTHS ENDED JUNE 30,
---------------------------------
2007
-------------------------------
AVERAGE
AVERAGE YIELD/
BALANCE INTEREST COST
---------------------------------
(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and
short-term investments $ 8,173 $ 213 5.21%
Investment securities (1) 73,611 2,765 7.51
FHLB stock 25,664 926 7.22
Mortgage-backed securities (1) 65,626 1,438 4.38
Loans receivable, net (2) 1,767,281 53,583 6.06
----------- ---------- --------
Total interest-earning assets 1,940,355 58,925 6.07
---------- --------
Non-interest-earning assets 100,867
-----------
Total assets $ 2,041,222
===========
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Transaction deposits $ 721,127 7,279 2.02
Time deposits 508,310 11,173 4.40
----------- ---------- --------
Total 1,229,437 18,452 3.00
Borrowed funds 549,876 13,365 4.86
----------- ---------- --------
Total interest-bearing
liabilities 1,779,313 31,817 3.58
---------- --------
Non-interest-bearing deposits 114,501
Non-interest-bearing liabilities 20,331
-----------
Total liabilities 1,914,145
Stockholders' equity 127,077
-----------
Total liabilities and
stockholders' equity $ 2,041,222
===========
Net interest income $ 27,108
==========
Net interest rate spread (3) 2.49%
========
Net interest margin (4) 2.79%
========
FOR THE SIX MONTHS ENDED JUNE 30,
---------------------------------
2006
---------------------------------
AVERAGE
AVERAGE YIELD/
BALANCE INTEREST COST
---------------------------------
(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and
short-term investments $ 8,555 $ 198 4.63%
Investment securities (1) 84,766 2,667 6.29
FHLB stock 23,450 557 4.75
Mortgage-backed securities (1) 81,960 1,705 4.16
Loans receivable, net (2) 1,723,984 51,227 5.94
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Total interest-earning assets 1,922,715 56,354 5.86
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Non-interest-earning assets 95,201
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Total assets $2,017,916
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Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Transaction deposits $ 723,908 5,505 1.52
Time deposits 518,573 9,596 3.70
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Total 1,242,481 15,101 2.43
Borrowed funds 505,560 11,425 4.52
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Total interest-bearing
liabilities 1,748,041 26,526 3.03
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Non-interest-bearing deposits 124,263
Non-interest-bearing liabilities 10,885
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Total liabilities 1,883,189
Stockholders' equity 134,727
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Total liabilities and
stockholders' equity $2,017,916
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Net interest income $ 29,828
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Net interest rate spread (3) 2.83%
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Net interest margin (4) 3.10%
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(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.
Source: OceanFirst Financial Corp.
Contact: OceanFirst Financial Corp.
Michael J. Fitzpatrick
Chief Financial Officer
732-240-4500, ext. 7506
Fax: 732-349-5070
[email protected]