OceanFirst Financial (OCFC) 8-K Financial statements and exhibits

Exhibit No. 99.1

Contact:   The Foristall Company, Inc. Thomas F. Curtin Tel: (610)398-3022 Fax: (610)530-7781 email:foristal@aol.com Company:   Michael J. Fitzpatrick Chief Financial Officer OceanFirst Financial Corp. Tel: (732)240-4500, ext. 7506 Fax: (732)349-5070 email:Mfitzpatrick@oceanfirst.com

FOR IMMEDIATE RELEASE

OceanFirst Financial Corp.

ANNOUNCES INCREASED ANNUAL

EARNINGS PER SHARE

TOMS RIVER, NEW JERSEY, January 22, 2004…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced diluted earnings per share for the year December 31, 2003 increased 4.1% to $1.53, from $1.47 for the corresponding prior year period. For the quarter ended December 31, 2003 diluted earnings per share were $.34, a decrease from the $.39 per share for the same prior year quarter. The Company also announced that its Board of Directors had declared a regular quarterly cash dividend of $.20 per share—covering the three month period ended December 31, 2003—to be paid on February 13, 2004, to shareholders of record on January 30, 2004.

In making today’s announcement John R. Garbarino, Chairman, President and Chief Executive Officer said, “While we are pleased to deliver our seventh consecutive year of increased earnings per share, net income for the fourth quarter 2003 was disappointing, adversely affected by several factors, not the least of which was the absence of the cash dividend on the FHLB NY stock held by the Bank.”

“At the same time, excluding the FHLB dividend, the Company has seen the end of the contraction of our net interest margin and continues to derive significant benefit from growth in non-interest income, up 72.7% year over year and over 40% from the fourth quarter of 2002. We are also pleased to declare our twenty-eighth consecutive quarterly cash dividend.”

Results of Operations

Net interest income for the quarter and year ended December 31, 2003 decreased to $13.6 million and $57.6 million, respectively, as compared to $14.9 million and $60.8 million, respectively, in the same prior year periods. For each period in 2003, the net interest margin declined as compared to the same prior year periods. The net interest margin decreased to 3.30% and 3.48%, respectively, for the quarter and year ended December 31, 2003 from 3.61% and 3.70%, respectively, in the same prior year periods. The yield on interest-earning assets decreased to 5.37% and 5.71%, respectively, as compared to 6.27% and 6.59%, respectively, for the same prior year periods. High prepayment levels caused a decrease in the rate earned on interest-earning assets and an acceleration of the amortization of net premiums on mortgage-related assets. Additionally, the Company did not receive a dividend on its Federal Home Loan Bank of New York stock for the quarter ended December 31, 2003. The dividend was $257,000 for the quarter ended December 31, 2002 and $243,000 for the quarter ended September 30, 2003. The cost of interest-bearing liabilities decreased to 2.29% and 2.47%, respectively, for the quarter and year ended December 31, 2003, as compared to 2.93% and 3.18%, respectively, in the same prior year periods. Funding costs benefited from the Company’s focus on lower cost core deposit growth. Core deposits (including non-interest-bearing deposits) represented 66.1% and 64.1%, respectively, of average deposits for the quarter and year ended December 31, 2003 as compared to 59.8% and 56.5%, respectively, for the same prior year periods.

Other income increased to $5.6 million and $18.7 million for the quarter and year ended December 31, 2003, respectively, from $4.0 and $10.9 million, respectively, in the same prior year periods. Fees and service charges increased by $223,000, or 12.5%, and $1.4 million, or 21.9%, for the quarter and year ended December 31, 2003, respectively, as compared to the same prior year periods due to the growth in commercial account services, retail core account balances and trust fees, and the establishment of a captive subsidiary to recognize fee income from private mortgage reinsurance. For the quarter and year ended December 31, 2003, the Company recorded gains of $3.1 million and $11.8 million on the sale of loans and securities, as compared to gains of $1.8 million and $4.5 million in the same prior year periods. For the quarter and year ended December 31, 2003, the gain on sales of loans and securities includes a gain of $396,000 and $719,000, respectively, on the sale of equity securities. Loan servicing income for the year ended December 31, 2003, was adversely affected by the recognition of an impairment to the loan servicing asset of $2.2 million. For the year ended December 31, 2002, the Company recognized an impairment to the loan servicing asset of $2.1 million.

Operating expenses amounted to $12.4 million and $44.9 million for the quarter and year ended December 31, 2003, respectively, as compared to $10.6 million and $40.1 million, respectively, for the corresponding prior year periods. The increase for the quarter and year ended December 31, 2003 included a non-cash severance expense of $250,000 relating to the acceleration of stock option grants. Additionally, ESOP expense increased $146,000 and $345,000 for the quarter and year ended December 31, 2003 as compared to the same prior year periods due to the Company’s higher average stock price. The increase for the year-to-date was also due to higher loan related expenses.

Financial Condition

Loans receivable net, increased by $53.3 million at December 31, 2003 as compared to December 31, 2002 as commercial loans outstanding increased $37.6 million, or 17.0%.

Deposits decreased to $1,144.2 million at December 31, 2003 from $1,184.8 million at December 31, 2002. Core deposits, however, the Company’s primary focus, grew $50.4 million while certificate balances declined in the low interest rate environment.

Stockholders’ equity decreased by $643,000 to $134.7 million at December 31, 2003 as compared to $135.3 million at December 31, 2002. For the year-to-date, 867,259 common shares were repurchased at a total cost of $20.6 million. Under the 10% repurchase program authorized by the Board of Directors in August 2002, 82,576 shares remain to be purchased as of December 31, 2003. A new repurchase program, the Company’s eleventh, was announced on October 22, 2003. Under this 10% repurchase program, an additional 1,341,818 shares are available for repurchase. The cost of share repurchases was partly offset by proceeds from stock option exercises and the related tax benefits.

Asset Quality

The Company’s non-performing assets totaled $2.4 million at December 31, 2003 as compared to $2.8 million at December 31, 2002. For the year ended December 31, 2003, the Company experienced a net recovery of $40,000 through the allowance for loan losses.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $1.7 billion in assets and seventeen 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, 2003			December 31, 2002
ASSETS
Cash and due from banks	$	36,172		$	17,192
Investment securities available for sale		80,458			91,978
Federal Home Loan Bank of New York stock, at cost		19,220			18,700
Mortgage-backed securities available for sale		86,938			138,657
Loans receivable, net		1,389,220			1,335,898
Mortgage loans held for sale		33,207			66,626
Interest and dividends receivable		5,477			6,378
Real estate owned, net		252			141
Premises and equipment, net		16,473			17,708
Servicing asset		7,473			7,907
Bank Owned Life Insurance		33,948			32,398
Other assets		8,571			10,115
Total assets	$	1,717,409		$	1,743,698
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,144,205		$	1,184,836
Securities sold under agreements to repurchase with retail customers		36,723			44,584
Securities sold under agreements to repurchase with the Federal Home Loan Bank		70,000			140,000
Federal Home Loan Bank advances		314,400			214,000
Advances by borrowers for taxes and insurance		6,152			5,952
Other liabilities		11,267			19,021
Total liabilities		1,582,747			1,608,393
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 13,350,999 and 13,757,880 shares outstanding at December 31, 2003 and December 31, 2002, respectively		272			272
Additional paid-in capital		189,615			184,934
Retained earnings		150,804			142,224
Accumulated other comprehensive loss		(3,400	)		(3,201	)
Less: Unallocated common stock held by
Employee Stock Ownership Plan		(9,911	)		(11,248	)
Treasury stock, 13,826,373 and 13,419,492 shares at December 31, 2003 and December 31, 2002, respectively		(192,718	)		(177,676	)
Total stockholders’ equity		134,662			135,305
Total liabilities and stockholders’ equity	$	1,717,409		$	1,743,698

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the quarter ended December 31					For year ended December 31,
	2003		2002			2003			2002
	(Unaudited)
Interest income:
Loans	$	20,823	$	23,205		$	86,881		$	94,427
Mortgage-backed securities		799		1,812			4,440			9,870
Investment securities and other		475		886			3,216			4,159
Total interest income		22,097		25,903			94,537			108,456
Interest expense:
Deposits		3,686		6,057			17,243			27,483
Borrowed funds		4,851		4,917			19,651			20,141
Total interest expense		8,537		10,974			36,894			47,624
Net interest income		13,560		14,929			57,643			60,832
Provision for loan losses		15		400			688			1,650
Net interest income after provision for loan losses		13,545		14,529			56,955			59,182
Other income:
Loan servicing income (loss)		105		(113	)		(2,654	)		(2,203	)
Fees and service charges		2,005		1,782			7,860			6,450
Net gain on sales of loans and securities available for sale		3,105		1,764			11,842			4,530
Net income from other real estate operations		7		83			113			151
Other		387		470			1,588			1,929
Total other income		5,609		3,986			18,749			10,857
Operating expenses:
Compensation and employee benefits		6,421		4,959			22,240			20,324
Occupancy		929		891			3,592			3,330
Equipment		625		603			2,434			2,281
Marketing		855		549			2,193			1,988
Federal deposit insurance		119		110			478			474
Data processing		759		676			2,994			2,584
General and administrative		2,663		2,770			10,926			9,163
Total operating expenses		12,371		10,558			44,857			40,144
Income before provision for income taxes		6,783		7,957			30,847			29,895
Provision for income taxes		2,436		2,789			10,974			9,752
Net income	$	4,347	$	5,168		$	19,873		$	20,143
Basic earnings per share	$	0.36	$	0.41		$	1.62		$	1.57
Diluted earnings per share	$	0.34	$	0.39		$	1.53		$	1.47
Average basic shares outstanding		12,015		12,463			12,291			12,819
Average diluted shares outstanding		12,832		13,347			13,017			13,696
Cash earnings (1)	$	5,460	$	5,965		$	23,459		$	23,298
Diluted cash earnings per share	$	0.43	$	0.45		$	1.80		$	1.70

(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 December 31, 2003			At December 31, 2002
STOCKHOLDERS’ EQUITY
Stockholders’ equity to total assets		7.84	%		7.76	%
Common shares outstanding (in thousands)		13,351			13,758
Stockholders’ equity per common share	$	10.09		$	9.83
Tangible stockholders’ equity per common share		9.98			9.72
ASSET QUALITY
Allowance for loan losses	$	10,802		$	10,074
Nonperforming loans		2,162			2,688
Nonperforming assets		2,414			2,829
Allowance for loan losses as a percent of total loans receivable		0.75	%		0.71	%
Allowance for loan losses as a percent of nonperforming loans		499.63			374.78
Nonperforming loans as a percent of total loans receivable		0.15			0.19
Nonperforming assets as a percent of total assets		0.14			0.16

	For the three months ended December 31				For the year ended December 31
	2003		2002		2003		2002
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets	1.00	%	1.19	%	1.14	%	1.16	%
Return on average stockholders’ equity	13.15		15.21		14.84		14.31
Interest rate spread	3.08		3.34		3.24		3.41
Interest rate margin	3.30		3.61		3.48		3.70
Operating expenses to average assets	2.84		2.43		2.57		2.32
Efficiency ratio	64.54		55.82		58.72		56.00

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 ended December 31						For the year ended December 31
	2003			2002			2003			2002
Net income	$	4,347		$	5,168		$	19,873		$	20,143
Add: Employee stock plans amortization expense		1,301			904			4,075			3,640
Amortization of intangible assets		26			26			103			103
Less: Tax benefit (1)		(214	)		(133	)		(592	)		(588	)
Cash earnings	$	5,460		$	5,965		$	23,459		$	23,298
Basic cash earnings per share	$	.45		$	0.48		$	1.91		$	1.82
Diluted cash earnings per share	$	.43		$	0.45		$	1.80		$	1.70

(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)

	At December 31, 2003			At December 31, 2002
LOANS RECEIVABLE
Real estate:
One-to four-family	$	1,081,901		$	1,101,904
Commercial real estate, multi-family and land		174,021			142,726
Construction		11,274			11,079
Consumer		81,455			80,218
Commercial		84,276			77,968
Total loans		1,432,927			1,413,895
Loans in process		(3,829	)		(3,531	)
Deferred origination costs, net		4,136			2,239
Unearned discount		(5	)		(5	)
Allowance for loan losses		(10,802	)		(10,074	)
Total loans, net		1,422,427			1,402,524
Less: mortgage loans held for sale		33,207			66,626
Loans receivable, net	$	1,389,220		$	1,335,898
Mortgage loans serviced for others	$	723,303		$	680,165
Loan pipeline		194,124			307,662

	For the three months ended						For the year ended
	December 31						December 31
	2003			2002			2003			2002
Loan originations	$	227,510		$	393,659		$	1,183,688		$	1,033,470
Loans sold		142,756			157,396			622,245			459,646
Net charge-offs (recovery)		(4	)		(8	)		(40	)		1,927

	At December 31, 2003		At December 31, 2002
DEPOSITS
Type of Account
Non-interest bearing	$	108,668	$	86,290
NOW		249,254		260,762
Money market deposit		138,812		123,960
Savings		259,629		234,995
Time deposits		387,842		478,829
	$	1,144,205	$	1,184,836

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

	FOR THE QUARTER ENDED DECEMBER 31,
	2003						2002
	AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST		AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST
	(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and short term investments	$	8,765	$	20	.91	%	$	18,752	$	67	1.43	%
Investment securities		86,775		455	2.10			88,301		562	2.55
FHLB stock		20,095		—	—			18,089		257	5.68
Mortgage-backed securities		94,636		799	3.38			158,693		1,812	4.57
Loans receivable, net (1)		1,435,698		20,823	5.80			1,372,235		23,205	6.76
Total interest-earning assets		1,645,969		22,097	5.37			1,656,070		25,903	6.27
Non-interest earning assets		98,757						84,091
Total assets	$	1,744,726					$	1,740,161
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	659,544		969	.59		$	623,745		1,886	1.21
Time deposits		394,340		2,717	2.76			478,098		4,171	3.49
Total		1,053,884		3,686	1.40			1,101,843		6,057	2.20
Borrowed funds		435,747		4,851	4.45			396,846		4,917	4.96
Total interest-bearing liabilities		1,489,631		8,537	2.29			1,498,689		10,974	2.93
Non-interest-bearing deposits		108,689						86,241
Non-interest bearing liabilities		14,176						19,515
Total liabilities		1,612,496						1,604,445
Stockholders’ equity		132,230						135,716
Total liabilities and stockholders’ equity	$	1,744,726					$	1,740,161
Net interest income			$	13,560					$	14,929
Net interest rate spread (2)					3.08	%					3.34	%
Net interest margin (3)					3.30	%					3.61	%

	FOR THE YEAR ENDED DECEMBER 31,
	2003						2002
	AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST		AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST
	(Dollars in thousands)
Assets
Interest-earnings assets:
Interest-earning deposits and short term investments	$	12,115	$	127	1.05	%	$	12,258	$	200	1.63	%
Investment securities		88,966		2,339	2.63			86,760		2,993	3.45
FHLB stock		19,518		750	3.84			20,283		966	4.76
Mortgage-backed securities		116,633		4,440	3.81			180,618		9,870	5.46
Loans receivable, net (1)		1,419,477		86,881	6.12			1,344,910		94,427	7.02
Total interest-earning assets		1,656,709		94,537	5.71			1,644,829		108,456	6.59
Non-interest earning assets		90,698						85,962
Total assets	$	1,747,407					$	1,730,791
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	648,970		4,794	.74		$	574,245		8,378	1.46
Time deposits		421,157		12,449	2.96			503,319		19,105	3.80
Total		1,070,127		17,243	1.61			1,077,564		27,483	2.55
Borrowed funds		424,829		19,651	4.63			418,679		20,141	4.81
Total interest-bearing liabilities		1,494,956		36,894	2.47			1,496,243		47,624	3.18
Non-interest-bearing deposits		102,294						78,294
Non-interest bearing liabilities		16,226						15,563
Total liabilities		1,613,476						1,590,100
Stockholders’ equity		133,931						140,691
Total liabilities and stockholders’ equity	$	1,747,407					$	1,730,791
Net interest income			$	57,643					$	60,832
Net interest rate spread (2)					3.24	%					3.41	%
Net interest margin (3)					3.48	%					3.70	%

(1) 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.

(2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average interest-earning assets.