OceanFirst Financial (OCFC) 8-K Announces 25.0% Increase In Quarterly Earnings

Exhibit 99.1

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 25.0% INCREASE IN QUARTERLY EARNINGS

AND CONTINUATION OF QUARTERLY DIVIDEND

TOMS RIVER, NEW JERSEY, July 21, 2005…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share for the quarter ended June 30, 2005 increased 25.0% to $.40 from $.32 for the corresponding prior year period. For the six months ended June 30, 2005 diluted earnings per share increased 19.4% to $.80, from $.67 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, 2005—to be paid on August 12, 2005, to shareholders of record on July 29, 2005.

In making today’s announcement, John R. Garbarino, Chairman, President and Chief Executive Officer said, “Our strong second quarter earnings continues the momentum of the last two quarters and is reflective of our efforts to grow core deposits and expand our loan production platform. Strong deposit growth continued for the fifth consecutive quarter as deposits increased $59.0 million, an 18.2% annualized rate. Additionally, loans receivable increased $66.4 million, a 17.6% annualized rate.”

Mr. Garbarino continued “I am also pleased to announce our thirty-fourth consecutive quarterly cash dividend reflecting an attractive 3.3% yield on our common stock.”

Results of Operations

Net interest income for the three and six months ended June 30, 2005 increased to $14.9 million and $30.1 million, respectively, as compared to $13.5 million and $27.3 million, respectively, in the same prior year periods, reflecting a higher net interest margin and higher levels of interest-earning assets. The net interest margin increased to 3.28% and 3.33%, respectively, for the three and six months ended June 30, 2005 from 3.14% and 3.25%, respectively, in the same prior year periods. The yield on interest-earning assets increased to 5.45% for both the three and six months ended June 30, 2005, as compared to 5.16% and 5.26%, respectively, for the same prior year periods. The cost of interest-bearing liabilities increased to 2.40% and 2.32%, respectively, for the three and six months ended June 30, 2005, as compared to 2.22% in the same prior year periods. Average interest-earning assets increased by $104.8 million and $127.2 million, respectively, for the three and six months ended June 30, 2005, as compared to the same prior year periods. The growth was concentrated in average loans receivable which grew $140.3 million, or 9.7% for the three months ended June 30, 2005, as compared to the same prior year period. For the six months ended June 30, 2005 average loans receivable increased $131.0 million or 9.1%, as compared to the same prior year period. The loan growth was funded by interest-bearing deposits which grew $156.9 million, or 14.8% for the three months ended June 30, 2005, as compared to the same prior year period. For the six months ended June 30, 2005 average interest-bearing deposits increased $147.8 million, or 14.0%, as compared to the same prior year period.

Other income increased to $5.9 million and $11.8 million for the three and six months ended June 30, 2005, respectively, from $4.5 million and $9.2 million, respectively, in the same prior year periods. For the three and six months ended June 30, 2005, the Company recorded gains of $3.2 million and $6.5 million, respectively, on the sale of loans, as compared to gains of $2.0 million and $4.4 million, respectively, in the same prior year periods. Loans sold for the three and six month periods ended June 30, 2005 increased to $165.5 million and $326.3 million, respectively, from $100.1 million and $189.4 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 $304,000, or 14.6% and $550,000, or 13.7%, for the three and six months ended June 30, 2005, respectively, as compared to the same prior year periods primarily related to increases in investment services and trust fees.

Operating expenses amounted to $13.2 million and $26.5 million, respectively, for the three and six months ended June 30, 2005, as compared to $11.7 million and $23.1 million, respectively, for the corresponding prior year periods. The increases were 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 $100.6 million, or 13.7% on an annualized basis, at June 30, 2005 as compared to December 31, 2004. Deposits increased to $1,357.2 million at June 30, 2005 from $1,270.5 million at December 31, 2004, a 13.6% annualized rate of growth. Core deposits (all deposits except time deposits) grew $61.6 million, 15.5% on an annualized basis.

Stockholders’ equity decreased by $2.7 million to $135.3 million at June 30, 2005, as compared to $138.0 million at December 31, 2004. For the six months ended June 30, 2005, 504,013 common shares were repurchased at a total cost of $11.6 million. Under the 10% repurchase program authorized by the Board of Directors in October 2003, 246,042 shares remain to be purchased as of June 30, 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 $2.3 million at June 30, 2005 as compared to $3.8 million at December 31, 2004. For the six months ended June 30, 2005 the Company realized net loan charge-offs of $425,000, an annualized charge-off ratio of 5 basis points of average loans.

Director Resignation

The Company also announced today the resignation from the Board of Directors of James G. Kiley. Mr. Kiley resigned for health-related reasons. Mr. Garbarino said, “Although Jim’s tenure on the OceanFirst Board was brief, we will miss the opportunity to work with him, and wish him well as we continue to keep him in our thoughts and prayers.”

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, July 22, 2005 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 #159573, from one hour after the end of the call until midnight on Friday, July 29, 2005.

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)

	June 30, 2005			December 31, 2004			June 30, 2004
	(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	45,832		$	74,021		$	48,809
Investment securities available for sale		85,412			83,960			83,906
Federal Home Loan Bank of New York stock, at cost		19,500			21,250			23,760
Mortgage-backed securities available for sale		105,687			124,478			145,225
Loans receivable, net		1,573,554			1,472,907			1,423,250
Mortgage loans held for sale		71,985			63,961			58,948
Interest and dividends receivable		6,860			6,033			6,234
Real estate owned, net		288			288			—
Premises and equipment, net		15,795			16,037			16,186
Servicing asset		9,356			8,790			7,792
Bank Owned Life Insurance		35,525			34,990			34,593
Intangible Assets		1,324			1,376			1,428
Other assets		6,646			6,184			7,215
Total assets	$	1,977,764		$	1,914,275		$	1,857,346
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,357,161		$	1,270,535		$	1,187,663
Securities sold under agreements to repurchase with retail customers		64,158			45,072			41,169
Securities sold under agreements to repurchase with the Federal Home Loan Bank		69,000			106,000			114,000
Federal Home Loan Bank advances		321,000			312,000			361,200
Advances by borrowers for taxes and insurance		8,760			6,289			6,944
Other liabilities		22,399			36,423			10,882
Total liabilities		1,842,478			1,776,319			1,721,858
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 12,742,633, 13,024,204 and 13,244,214 shares outstanding at June 30, 2005, December 31, 2004 and June 30, 2004, respectively		272			272			272
Additional paid-in capital		195,915			193,723			192,161
Retained earnings		160,866			157,575			153,250
Accumulated other comprehensive loss		(1,011	)		(667	)		(2,464	)
Less: Unallocated common stock held by Employee Stock Ownership Plan		(8,061	)		(8,652	)		(9,281	)
Treasury stock, 14,434,739, 14,153,168 and 13,933,158 shares at June 30, 2005, December 31, 2004 and June 30, 2004, respectively		(212,695	)		(204,295	)		(198,450	)
Total stockholders’ equity		135,286			137,956			135,488
Total liabilities and stockholders’ equity	$	1,977,764		$	1,914,275		$	1,857,346

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the three months ended June 30,					For the six months ended June 30,
	2005		2004			2005			2004
	(Unaudited)					(Unaudited)
Interest income:
Loans	$	22,757	$	20,405		$	44,530		$	40,593
Mortgage-backed securities		967		1,194			2,061			2,050
Investment securities and other		1,136		546			2,591			1,532
Total interest income		24,860		22,145			49,182			44,175
Interest expense:
Deposits		5,326		3,490			10,018			6,976
Borrowed funds		4,605		5,147			9,058			9,931
Total interest expense		9,931		8,637			19,076			16,907
Net interest income		14,929		13,508			30,106			27,268
Provision for loan losses		200		50			250			100
Net interest income after provision for loan losses		14,729		13,458			29,856			27,168
Other income:
Loan servicing income		60		83			101			145
Fees and service charges		2,388		2,084			4,570			4,020
Net gain on sales of loans and securities available for sale		3,204		2,028			6,544			4,359
Net loss from other real estate operations		—		(3	)		(1	)		—
Income from Bank Owned Life Insurance		262		315			535			645
Other		4		6			42			13
Total other income		5,918		4,513			11,791			9,182
Operating expenses:
Compensation and employee benefits		7,484		6,494			15,013			13,183
Occupancy		1,106		919			2,175			1,793
Equipment		641		540			1,275			1,084
Marketing		764		442			1,463			645
Federal deposit insurance		128		120			253			240
Data processing		773		735			1,556			1,470
General and administrative		2,261		2,428			4,791			4,694
Total operating expenses		13,157		11,678			26,526			23,109
Income before provision for income taxes		7,490		6,293			15,121			13,241
Provision for income taxes		2,615		2,272			5,300			4,741
Net income	$	4,875	$	4,021		$	9,821		$	8,500
Basic earnings per share	$	0.41	$	0.33		$	0.83		$	0.70
Diluted earnings per share	$	0.40	$	0.32		$	0.80		$	0.67
Average basic shares outstanding		11,818		12,158			11,892			12,161
Average diluted shares outstanding		12,194		12,656			12,315			12,716
Cash earnings (1)	$	5,610	$	4,784		$	11,305		$	10,116
Diluted cash earnings per share	$	0.46	$	0.38		$	0.92		$	0.80

(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, 2005			At December 31, 2004			At June 30, 2004
STOCKHOLDERS’ EQUITY
Stockholders’ equity to total assets		6.84	%		7.21	%		7.29	%
Common shares outstanding (in thousands)		12,743			13,024			13,244
Stockholders’ equity per common share	$	10.62		$	10.59		$	10.23
Tangible stockholders’ equity per common share		10.51			10.49			10.12
ASSET QUALITY
Allowance for loan losses	$	10,514		$	10,688		$	10,951
Nonperforming loans		2,052			3,488			3,565
Nonperforming assets		2,340			3,776			3,565
Allowance for loan losses as a percent of total loans receivable		0.63	%		0.69	%		0.73	%
Allowance for loan losses as a percent of
nonperforming loans		512.38			306.42			307.18
Nonperforming loans as a percent of
total loans receivable		0.12			0.23			0.24
Nonperforming assets as a percent of total assets		0.12			0.20			0.19

	For the three months ended June 30				For the six months ended June 30
	2005		2004		2005		2004
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets	1.01	%	.89	%	1.03	%	.96	%
Return on average stockholders’ equity	14.49		11.85		14.50		12.63
Interest rate spread	3.05		2.94		3.13		3.04
Interest rate margin	3.28		3.14		3.33		3.25
Operating expenses to average assets	2.74		2.57		2.78		2.60
Efficiency ratio	63.11		64.80		63.31		63.40

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 endedJune 30						For the six months ended June 30
	2005			2004			2005			2004
Net income	$	4,875		$	4,021		$	9,821		$	8,500
Add: Employee stock plans amortization expense		849			856			1,670			1,802
Amortization of intangible assets		26			26			52			52
Less: Tax benefit(1)		(140	)		(119	)		(253	)		(238	)
Cash earnings	$	5,610		$	4,784		$	11,290		$	10,116
Basic cash earnings per share	$	0.47		$	0.39		$	0.95		$	0.83
Diluted cash earnings per share	$	0.46		$	0.38		$	0.92		$	0.80

⁽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 June 30, 2005			At December 31, 2004
Real estate:
One- to four-family	$	1,183,007		$	1,126,585
Commercial real estate, multi- family and land		270,643			243,299
Construction		15,554			19,189
Consumer		124,536			99,279
Commercial		64,207			61,290
Total loans		1,657,947			1,549,642
Loans in process		(5,882	)		(5,970	)
Deferred origination costs, net		3,991			3,888
Unearned discount		(3	)		(4	)
Allowance for loan losses		(10,514	)		(10,688	)
Total loans, net		1,645,539			1,536,868
Less: mortgage loans held for sale		71,985			63,961
Loans receivable, net	$	1,573,554		$	1,472,907
Mortgage loans serviced for others	$	870,221		$	805,375
Loan pipeline		344,835			250,657

	For the three months ended June 30,				For the six months ended June 30,
	2005		2004		2005		2004
Loan originations	$	372,754	$	260,016	$	647,179	$	429,253
Loans sold		165,537		100,147		326,308		189,399
Net charge-offs (recovery)		422		—		425		(49	)

DEPOSITS

Type of Account	At June 30, 2005		At December 31, 2004
Non-interest bearing	$	125,928	$	106,492
Interest-bearing checking		332,233		297,919
Money market deposit		138,503		142,893
Savings		262,306		250,032
Time deposits		498,191		473,199
	$	1,357,161	$	1,270,535

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

	FOR THE QUARTERS ENDED JUNE 30,
	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	$	13,234	$	98	2.96	%	$	10,781	$	28	1.04	%
Investment securities (1)		86,883		803	3.70			85,477		437	2.04
FHLB stock		19,802		235	4.75			23,659		81	1.37
Mortgage-backed securities (1)		112,397		967	3.44			147,860		1,194	3.23
Loans receivable, net (2)		1,590,601		22,757	5.72			1,450,303		20,405	5.63
Total interest-earning assets		1,822,917		24,860	5.45			1,718,080		22,145	5.16
Non-interest earning assets		100,779						96,984
Total assets	$	1,923,696					$	1,815,064
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	726,798		1,757	0.97		$	668,862		959	0.57
Time deposits		487,151		3,569	2.93			388,212		2,531	2.61
Total		1,213,949		5,326	1.75			1,057,074		3,490	1.32
Borrowed funds		443,728		4,605	4.15			500,461		5,147	4.11
Total interest-bearing liabilities		1,657,677		9,931	2.40			1,557,535		8,637	2.22
Non-interest-bearing deposits		120,869						111,841
Non-interest bearing liabilities		10,585						9,940
Total liabilities		1,789,131						1,679,316
Stockholders’ equity		134,565						135,748
Total liabilities and stockholders’ equity	$	1,923,696					$	1,815,064
Net interest income			$	14,929					$	13,508
Net interest rate spread (3)					3.05	%					2.94	%
Net interest margin (4)					3.28	%					3.14	%

	FOR THE SIX MONTHS ENDED JUNE 30,
	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	$	14,358	$	194	2.70	%	$	9,957	$	50	1.00	%
Investment securities (1)		86,422		1,995	4.62			85,519		1,327	3.10
FHLB stock		20,086		402	4.00			22,186		155	1.40
Mortgage-backed securities (1)		116,747		2,061	3.53			123,739		2,050	3.31
Loans receivable, net (2)		1,568,749		44,530	5.68			1,437,748		40,593	5.65
Total interest-earning assets		1,806,362		49,182	5.45			1,679,149		44,175	5.26
Non-interest earning assets		101,430						95,499
Total assets	$	1,907,792					$	1,774,648
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	725,381		3,334	0.92		$	667,169		1,892	0.57
Time deposits		474,649		6,684	2.82			385,066		5,084	2.64
Total		1,200,030		10,018	1.67			1,052,235		6,976	1.33
Borrowed funds		443,222		9,058	4.09			472,969		9,931	4.20
Total interest-bearing liabilities		1,643,252		19,076	2.32			1,525,204		16,907	2.22
Non-interest-bearing deposits		114,995						102,659
Non-interest bearing liabilities		14,052						12,211
Total liabilities		1,772,299						1,640,074
Stockholders’ equity		135,493						134,574
Total liabilities and stockholders’ equity	$	1,907,792					$	1,774,648
Net interest income			$	30,106					$	27,268
Net interest rate spread (3)					3.13	%					3.04	%
Net interest margin (4)					3.33	%					3.25	%

(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.