OceanFirst Financial (OCFC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Contact:	Company:
The Foristall Company, Inc. Thomas F. Curtin Tel: (610)398-3022 Fax: (610)530-7781 email:foristal@aol.com	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 14.3% INCREASE IN QUARTERLY EARNINGS

AND CONTINUATION OF QUARTERLY DIVIDEND

TOMS RIVER, NEW JERSEY, April 21, 2005…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share for the quarter ended March 31, 2005 increased 14.3% to $.40 from $.35 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 March 31, 2005—to be paid on May 13, 2005, to shareholders of record on April 29, 2005.

In making today’s announcement, John R. Garbarino, Chairman, President and Chief Executive Officer said, “On behalf of the Board of Directors, I am pleased to report a second consecutive strong quarter of earnings. The year over year earnings growth is reflective of our efforts to grow core deposits and expand our loan production platform. I am also pleased to announce our thirty-third consecutive quarterly cash dividend reflecting an attractive 3.8% yield on our common stock.”

Mr. Garbarino continued, “Strong deposit growth continued for the fourth consecutive quarter. During the first quarter, deposits increased $27.7 million, an 8.7% annualized rate.

Additionally, loans receivable increased $34.3 million, a 9.3% annualized rate. Going forward, deposit growth will be augmented by the opening of our eighteenth branch office in Freehold late in the first quarter.”

Results of Operations

Net interest income for the three months ended March 31, 2005 amounted to $15.2 million, as compared to $13.8 million in the same prior year period, reflecting a slightly higher net interest margin and higher levels of interest-earning assets. The net interest margin increased to 3.39% for the three months ended March 31, 2005 from 3.36% in the same prior year period. The yield on interest-earning assets increased to 5.43%, as compared to 5.37% for the same prior year period. The asset yield for the current quarter benefited from $443,000 of income relating to an equity investment. The comparable benefit for the prior year period was $440,000. The cost of interest-bearing liabilities increased to 2.25% for the three months ended March 31, 2005, as compared to 2.23% in the same prior year period. Average interest-earning assets increased by $150.5 million for the three months ended March 31, 2005 as compared to the same prior year period. The growth was concentrated in average loans receivable which grew $121.7 million, or 8.5%. The loan growth was funded by interest-bearing deposits which grew $149.2 million, or 14.4%.

Other income increased to $5.9 million for the three months ended March 31, 2005 from $4.7 million in the same prior year period. For the three months ended March 31, 2005, the Company recorded a gain of $3.3 million on the sale of loans and securities, as compared to a gain of $2.3 million in the same prior year period. Loans sold for the three month period ended March 31, 2005 increased to $160.8 million from $89.3 million in the same prior year period. 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 $246,000, or 12.7%, for the three months ended March 31, 2005, as compared to the same prior year period primarily related to increases in investment services and trust fees.

Operating expenses amounted to $13.4 million for the three months ended March 31, 2005, as compared to $11.4 million for the corresponding prior year period. The increase was partly due to the costs related to the third quarter 2004 acquisition of a consumer direct lending operation.

Financial Condition

Loans receivable net, increased by $34.3 million, or 9.3% on an annualized basis, at March 31, 2005 as compared to December 31, 2004. Deposits increased to $1,298.2 million at March 31, 2005 from $1,270.5 million at December 31, 2004. Core deposits grew $34.6 million, 17.4% on an annualized basis, while time deposits declined.

Stockholders’ equity decreased by $3.3 million to $134.6 million at March 31, 2005, as compared to $138.0 million at December 31, 2004. For the quarter, 302,113 common shares were repurchased at a total cost of $7.1 million. Under the 10% repurchase program authorized by the Board of Directors in October 2003, 447,942 shares remain to be purchased as of March 31, 2005. The cost of share repurchases was partly offset by 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 $3.0 million at March 31, 2005 as compared to $3.8 million at December 31, 2004. For the quarter ended March 31, 2005 the Company realized net loan charge-offs of $3,000.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $1.9 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)

	March 31, 2005			December 31, 2004			March 31, 2004
	(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	44,575		$	74,021		$	33,272
Investment securities available for sale		85,616			83,960			83,279
Federal Home Loan Bank of New York stock, at cost		20,650			21,250			22,025
Mortgage-backed securities available for sale		115,599			124,478			130,451
Loans receivable, net		1,507,193			1,472,907			1,380,339
Mortgage loans held for sale		40,736			63,961			46,960
Interest and dividends receivable		6,261			6,033			5,956
Real estate owned, net		288			288			—
Premises and equipment, net		16,058			16,037			16,346
Servicing asset		9,105			8,790			7,486
Bank Owned Life Insurance		35,263			34,990			34,278
Intangible Assets		1,350			1,376			1,455
Other assets		7,225			6,184			5,899
Total assets	$	1,889,919		$	1,914,275		$	1,767,746
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,298,209		$	1,270,535		$	1,135,296
Securities sold under agreements to repurchase with retail customers		49,194			45,072			41,949
Securities sold under agreements to repurchase with the Federal Home Loan Bank		101,000			106,000			90,000
Federal Home Loan Bank advances		284,000			312,000			350,500
Advances by borrowers for taxes and insurance		8,026			6,289			6,655
Other liabilities		14,846			36,423			5,738
Total liabilities		1,755,275			1,776,319			1,630,138
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 12,831,281, 13,024,204 and 13,362,419 shares outstanding at March 31, 2005, December 31, 2004 and March 31, 2004, respectively		272			272			272
Additional paid-in capital		194,660			193,723			191,537
Retained earnings		159,454			157,575			151,714
Accumulated other comprehensive loss		(1,547	)		(667	)		(734	)
Less: Unallocated common stock held by Employee Stock Ownership Plan		(8,357	)		(8,652	)		(9,595	)
Treasury stock, 14,346,091, 14,153,168 and 13,814,953 shares at March 31, 2005, December 31, 2004 and March 31, 2004, respectively		(209,838	)		(204,295	)		(195,586	)
Total stockholders’ equity		134,644			137,956			137,608
Total liabilities and stockholders’ equity	$	1,889,919		$	1,914,275		$	1,767,746

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the three months ended March 31,
	2005			2004
	(Unaudited)
Interest income:
Loans	$	21,773		$	20,189
Mortgage-backed securities		1,094			855
Investment securities and other		1,454			986
Total interest income		24,321			22,030
Interest expense:
Deposits		4,692			3,486
Borrowed funds		4,452			4,784
Total interest expense		9,144			8,270
Net interest income		15,177			13,760
Provision for loan losses		50			50
Net interest income after provision for loan losses		15,127			13,710
Other income:
Loan servicing income		41			63
Fees and service charges		2,182			1,936
Net gain on sales of loans and securities available for sale		3,340			2,331
Net (loss) income from other real estate operations		(1	)		3
Income from Bank Owned Life Insurance		273			330
Other		38			6
Total other income		5,873			4,669
Operating expenses:
Compensation and employee benefits		7,529			6,689
Occupancy		1,069			874
Equipment		634			545
Marketing		698			203
Federal deposit insurance		125			120
Data processing		783			735
General and administrative		2,531			2,266
Total operating expenses		13,369			11,432
Income before provision for income taxes		7,631			6,947
Provision for income taxes		2,685			2,469
Net income	$	4,946		$	4,478
Basic earnings per share	$	0.41		$	0.37
Diluted earnings per share	$	0.40		$	0.35
Average basic shares outstanding		11,971			12,165
Average diluted shares outstanding		12,468			12,848
Cash earnings (1)	$	5,697		$	5,331
Diluted cash earnings per share	$	0.46		$	0.41

(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 March 31, 2005			At December 31, 2004			At March 31, 2004
STOCKHOLDERS’ EQUITY
Stockholders’ equity to total assets		7.12	%		7.21	%		7.78	%
Common shares outstanding (in thousands)		12,831			13,024			13,362
Stockholders’ equity per common share	$	10.49		$	10.59		$	10.30
Tangible stockholders’ equity per common share		10.39			10.49			10.19
ASSET QUALITY
Allowance for loan losses	$	10,735		$	10,688		$	10,901
Nonperforming loans		2,736			3,488			3,428
Nonperforming assets		3,024			3,776			3,428
Allowance for loan losses as a percent of total loans receivable		0.69	%		0.69	%		0.76	%
Allowance for loan losses as a percent of nonperforming loans		392.36			306.42			318.00
Nonperforming loans as a percent of total loans receivable		0.18			0.23			0.24
Nonperforming assets as a percent of total assets		0.16			0.20			0.19

	For the three months ended March 31
	2005		2004
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets	1.05	%	1.03	%
Return on average stockholders’ equity	14.50		13.43
Interest rate spread	3.18		3.14
Interest rate margin	3.39		3.36
Operating expenses to average assets	2.83		2.64
Efficiency ratio	63.51		62.03

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 March 31
	2005			2004
Net income	$	4,946		$	4,478
Add: Employee stock plans amortization expense		845			946
Amortization of intangible assets		26			26
Less: Tax benefit(1)		(120	)		(119	)
Cash earnings	$	5,697		$	5,331
Basic cash earnings per share	$	0.48		$	0.44
Diluted cash earnings per share	$	0.46		$	0.41

⁽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 March 31, 2005			At December 31, 2004
LOANS RECEIVABLE
Real estate:
One- to four-family	$	1,118,155		$	1,126,585
Commercial real estate, multi-family and land		252,725			243,299
Construction		17,735			19,189
Consumer		109,820			99,279
Commercial		62,275			61,290
Total loans		1,560,710			1,549,642
Loans in process		(5,657	)		(5,970	)
Deferred origination costs, net		3,615			3,888
Unearned discount		(4	)		(4	)
Allowance for loan losses		(10,735	)		(10,688	)
Total loans, net		1,547,929			1,536,868
Less: mortgage loans held for sale		40,736			63,961
Loans receivable, net	$	1,507,193		$	1,472,907
Mortgage loans serviced for others	$	837,968		$	805,375
Loan pipeline		299,291			250,657
	For the three months ended March 31,
	2005			2004
Loan originations	$	274,425		$	169,237
Loans sold		160,771			89,252
Net charge-offs (recovery)		3			(49	)
	At March 31, 2005			At December 31, 2004
DEPOSITS
Type of Account
Non-interest bearing	$	112,118		$	106,492
Interest-bearing checking		311,232			297,919
Money market deposit		140,598			142,893
Savings		267,989			250,032
Time deposits		466,272			473,199
	$	1,298,209		$	1,270,535

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

	FOR THE QUARTERS ENDED MARCH 31,
	2005						2004
	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	$	15,811	$	96	2.43	%	$	9,181	$	23	1.00	%
Investment securities		85,942		1,191	5.54			85,578		890	4.16
FHLB stock		20,377		167	3.28			20,683		73	1.41
Mortgage-backed securities		121,217		1,094	3.61			99,137		855	3.45
Loans receivable, net (1)		1,546,749		21,773	5.63			1,425,002		20,189	5.67
Total interest-earning assets		1,790,096		24,321	5.43			1,639,581		22,030	5.37
Non-interest earning assets		101,503						93,758
Total assets	$	1,891,599					$	1,733,339
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	723,493		1,576	0.87		$	654,522		933	0.57
Time deposits		462,209		3,116	2.70			381,993		2,553	2.67
Total		1,185,702		4,692	1.58			1,036,515		3,486	1.35
Borrowed funds		442,815		4,452	4.02			444,977		4,784	4.30
Total interest-bearing liabilities		1,628,517		9,144	2.25			1,481,492		8,270	2.23
Non-interest-bearing deposits		109,120						103,991
Non-interest bearing liabilities		17,541						14,483
Total liabilities		1,755,178						1,599,966
Stockholders’ equity		136,421						133,373
Total liabilities and stockholders’ equity	$	1,891,599					$	1,733,339
Net interest income			$	15,177					$	13,760
Net interest rate spread (2)					3.18	%					3.14	%
Net interest margin (3)					3.39	%					3.36	%

(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.