OceanFirst Financial (OCFC) 8-K And Continuation of Quarterly Dividend

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 QUARTERLY EARNINGS

AND CONTINUATION OF QUARTERLY DIVIDEND

TOMS RIVER, NEW JERSEY, January 18, 2007…OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank, today announced that diluted earnings per share for the quarter ended December 31, 2006 amounted to $.40, unchanged from the corresponding prior year period. For the year ended December 31, 2006 diluted earnings per share was $1.59 as compared to $1.60 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 December 31, 2006—to be paid on February 9, 2007, to shareholders of record on January 26, 2007.

In making today’s announcement, John R. Garbarino, Chairman, President and Chief Executive Officer said, “Despite the continuation of the hostile economic environment resulting from the inverted yield curve, both quarterly and annual earnings at OceanFirst have stabilized. On Behalf of the Board of Directors, I am pleased to announce our fortieth consecutive quarterly cash dividend reflective of consistent delivery of solid earnings into our tenth year as a public company.”

Results of Operations

Net interest income for the quarter and year ended December 31, 2006 decreased to $13.8 million and $58.1 million, respectively, as compared to $15.4 million and $60.9 million, respectively, in the same prior year periods, reflecting a lower net interest margin partly offset by higher levels of interest-earning assets. The net interest margin decreased to 2.81% and 2.98%, respectively, for the quarter and year ended December 31, 2006 from 3.24% and 3.30%, respectively, in the same prior year periods. The yield on interest-earning assets increased to 6.08% and 5.97%, respectively, for the quarter and year ended December 31, 2006, as compared to 5.74% and 5.56%, respectively, for the same prior year periods. The cost of interest-bearing liabilities increased to 3.57% and 3.28%, respectively, for the quarter and year ended December 31, 2006, as compared to 2.74% and 2.49%, respectively, in the same prior year periods. The increased cost of interest-bearing liabilities is due to the continued increases in interest rates early in 2006, the intensified competition for deposits and a change in the mix of deposits from lower-costing savings and money market accounts into higher-costing time deposits. Through mid-year 2006, the Board of Governors of the Federal Reserve increased the federal funds borrowing rate 4 times for a total of 100 basis points. The pause in short-term rate increases by the Federal Reserve during the second half of 2006 has brought about an inversion of the treasury yield curve as longer-term rates have begun to decline. Average interest-earning assets increased by $65.2 million and $105.4 million, respectively, for the quarter and year ended December 31, 2006, as compared to the same prior year periods. The growth was concentrated in average loans receivable which grew $81.2 million, or 4.8%, for the quarter ended December 31, 2006, as compared to the same prior year period. For the year ended December 31, 2006 average loans receivable increased $133.5 million, or 8.2%, as compared to the same prior year period. The loan growth was funded by average borrowed funds which grew $73.4 million and $76.5 million, respectively, for the quarter and year ended December 31, 2006, as compared to the same prior year periods.

Other income amounted to $5.6 million and $23.2 million for the quarter and year ended December 31, 2006, respectively, as compared to $6.0 million and $24.1 million, respectively, in the same prior year periods. For the quarter and year ended December 31, 2006, the Company recorded gains of $2.5 million and $11.0 million, respectively, on the sale of loans, as compared to gains of $3.1 million and $13.2 million, respectively, in the same prior year periods. Loans sold for the quarter ended December 31, 2006 increased to $184.1 million from $173.3 million in the same prior year period. Loans sold for the year ended December 31, 2006 decreased to $689.6 million from $712.0 million in the same prior year period. The gain on sale margin from sold loans decreased for both the quarter and year ended December 31, 2006, as compared to the same prior year periods due to competitive pressures and a change in the mix to a greater proportion of wholesale loans. Fees and service charges increased $174,000, or 7.1%, and $1.1 million, or 11.2%, for the quarter and year ended December 31, 2006, respectively, as compared to the same prior year periods primarily related to fees from reverse mortgage loans, a new emphasis for the Company, as well as fees from title insurance and trust services.

Operating expenses decreased to $12.4 million and $52.7 million, respectively, for the quarter and year ended December 31, 2006, as compared to $14.1 million and $54.8 million, respectively, for the corresponding prior year periods. The decrease in operating expenses was due to reduced incentive compensation plan accruals and reductions to loan related marketing expense.

Financial Condition

Loans receivable net, increased by $46.9 million, or 2.8%, at December 31, 2006 as compared to December 31, 2005. Deposits increased to $1,372.3 million at December 31, 2006 from $1,356.6 million at December 31, 2005. Federal Home Loan Bank borrowings increased $50.6 million at December 31, 2006 as compared to December 31, 2005 in order to fund loan growth. For the year, the holding company issued Trust Preferred Securities for $12.5 million, the proceeds of which were partly used to fund the Company’s continuing common stock repurchase program.

Stockholders’ equity decreased by $402,000 to $138.4 million at December 31, 2006, as compared to $138.8 million at December 31, 2005. For the year ended December 31, 2006, 772,804 common shares were repurchased at a total cost of $17.6 million. Under the 5% repurchase program authorized by the Board of Directors in July 2006, 538,763 shares remained to be purchased as of December 31, 2006. The reduction in stockholders’ equity due to common stock 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 $4.8 million at December 31, 2006 as compared to $1.9 million at December 31, 2005. For the year ended December 31, 2006 the Company realized net loan charge-offs of $372,000 as compared to net loan charge-offs of $578,000 for the same prior year period.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, January 19, 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 #226272, from one hour after the end of the call until midnight on Thursday, January 25, 2007.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered stock savings bank with $2.1 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 athttp://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 Board of Governors of the Federal Reserve System, 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, 2006			December 31, 2005
ASSETS
Cash and due from banks	$	32,204		$	31,108
Investment securities available for sale		82,384			83,861
Federal Home Loan Bank of New York stock, at cost		25,346			21,792
Mortgage-backed securities available for sale		68,369			85,025
Loans receivable, net		1,701,425			1,654,544
Mortgage loans held for sale		82,943			32,044
Interest and dividends receivable		8,083			7,089
Real estate owned, net		288			278
Premises and equipment, net		18,196			16,118
Servicing asset		9,787			9,730
Bank Owned Life Insurance		37,145			36,002
Intangible Assets		1,114			1,272
Other assets		6.358			6,494
Total assets	$	2,073,642		$	1,985,357
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,372,328		$	1,356,568
Securities sold under agreements to repurchase with retail customers		50,982			54,289
Securities sold under agreements to repurchase with the Federal Home Loan Bank		34,000			59,000
Federal Home Loan Bank advances		430,500			354,900
Other borrowings		17,500			5,000
Advances by borrowers for taxes and insurance		7,743			7,699
Other liabilities		22,207			9,117
Total liabilities		1,935,260			1,846,573
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 12,262,307 and 12,698,505, shares outstanding at December 31, 2006 and 2005, respectively		272			272
Additional paid-in capital		201,936			197,621
Retained earnings		170,183			164,613
Accumulated other comprehensive loss		(470	)		(1,223	)
Less: Unallocated common stock held by Employee Stock Ownership Plan		(6,369	)		(7,472	)
Treasury stock, 14,915,065 and 14,478,867, shares at December 31, 2006 and 2005, respectively		(227,170	)		(215,027	)
Common stock acquired by Deferred Compensation Plan		1,457			1,383
Deferred Compensation Plan Liability		(1,457	)		(1,383	)
Total stockholders’ equity		138,382			138,784
Total liabilities and stockholders’ equity	$	2,073,642		$	1,985,357

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the three months ended December 31,					For the years ended December 31,
	2006			2005		2006			2005
	(Unaudited)
Interest income:
Loans	$	27,334		$	25,112	$	106,384		$	93,864
Mortgage-backed securities		786			854		3,304			3,813
Investment securities and other		1,772			1,323		6,874			5,122
Total interest income		29,892			27,289		116,562			102,799
Interest expense:
Deposits		9,362			6,733		33,401			22,807
Borrowed funds		6,698			5,146		25,042			19,066
Total interest expense		16,060			11,879		58,443			41,873
Net interest income		13,832			15,410		58,119			60,926
Provision for loan losses		50			—		150			350
Net interest income after provision for loan losses		13,782			15,410		57,969			60,576
Other income:
Loan servicing income		106			131		515			280
Fees and service charges		2,633			2,459		10,488			9,434
Net gain on sales of loans and securities available for sale		2,484			3,104		10,958			13,183
Net loss from other real estate operations		(1	)		—		(61	)		—
Income from Bank Owned Life Insurance		303			267		1,143			1,122
Other		111			23		165			71
Total other income		5,636			5,984		23,208			24,090
Operating expenses:
Compensation and employee benefits		6,840			7,965		29,592			31,184
Occupancy		1,287			1,254		4,850			4,539
Equipment		558			597		2,533			2,531
Marketing		287			702		1,517			2,914
Federal deposit insurance		133			128		533			507
Data processing		847			830		3,416			3,243
General and administrative		2,480			2,640		10,215			9,916
Total operating expenses		12,432			14,116		52,656			54,834
Income before provision for income taxes		6,986			7,278		28,521			29,832
Provision for income taxes		2,364			2,432		9,826			10,335
Net income	$	4,622		$	4,846	$	18,695		$	19,497
Basic earnings per share	$	0.40		$	0.41	$	1.62		$	1.65
Diluted earnings per share	$	0.40		$	0.40	$	1.59		$	1.60
Average basic shares outstanding		11,488			11,737		11,547			11,786
Average diluted shares outstanding		11,685			12,148		11,765			12,219
Cash earnings (1)	$	5,356		$	5,598	$	21,583		$	22,479
Diluted cash earnings per share	$	0.46		$	0.46	$	1.83		$	1.84

(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, 2006			At December 31, 2005
STOCKHOLDERS’ EQUITY
Stockholders’ equity to total assets		6.67	%		6.99	%
Common shares outstanding (in thousands)		12,262			12,699
Stockholders’ equity per common share	$	11.29		$	10.93
Tangible stockholders’ equity per common share		11.19			10.83
ASSET QUALITY
Allowance for loan losses	$	10,238		$	10,460
Nonperforming loans		4,525			1,595
Nonperforming assets		4,813			1,873
Allowance for loan losses as a percent of total loans receivable		0.57	%		0.62	%
Allowance for loan losses as a percent of nonperforming loans		226.25			655.80
Nonperforming loans as a percent of total loans receivable		0.25			0.09
Nonperforming assets as a percent of total assets		0.23			0.09

	For the three months ended December 31,				For the years ended December 31,
	2006		2005		2006		2005
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets	0.90	%	0.97	%	0.91	%	1.00	%
Return on average stockholders’ equity	13.66		14.30		13.91		14.43
Interest rate spread	2.51		3.00		2.69		3.07
Interest rate margin	2.81		3.24		2.98		3.30
Operating expenses to average assets	2.41		2.82		2.57		2.81
Efficiency ratio	63.86		65.98		64.75		64.50

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 years ended December 31,
	2006			2005			2006			2005
Net income	$	4,622		$	4,846		$	18,695		$	19,497
Add: Employee stock plans amortization Expense		799			847			3,290			3,374
Amortization of intangible assets		81			26			158			103
Less: Tax benefit(1)		(146	)		(121	)		(560	)		(495	)
Cash earnings	$	5,356		$	5,598		$	21,583		$	22,479
Basic cash earnings per share	$	0.47		$	0.48		$	1.87		$	1.91
Diluted cash earnings per share	$	0.46		$	0.46		$	1.83		$	1.84

⁽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 December 31, 2006			At December 31, 2005
Real estate:
One- to four-family	$	1,231,716		$	1,187,226
Commercial real estate, multi-family and land		306,288			281,585
Construction		13,475			22,739
Consumer		190,029			146,911
Commercial		49,693			61,637
Total loans		1,791,201			1,700,098
Loans in process		(2,318	)		(7,646	)
Deferred origination costs, net		5,723			4,596
Allowance for loan losses		(10,238	)		(10,460	)
Total loans, net		1,784,368			1,686,588
Less: mortgage loans held for sale		82,943			32,044
Loans receivable, net	$	1,701,425		$	1,654,544
Mortgage loans serviced for others	$	992,658		$	910,272
Loan pipeline		294,646			293,934

	For the three months ended December 31,					For the years ended December 31,
	2006		2005			2006		2005
Loan originations	$	295,714	$	288,148		$	1,221,819	$	1,303,754
Loans sold		184,104		173,251			689,561		711,952
Net charge-offs (recovery)		222		(50	)		372		578

DEPOSITS

	At December 31, 2006		At December 31, 2005
Type of Account
Non-interest bearing	$	114,950	$	120,188
Interest-bearing checking		408,666		381,787
Money market deposit		105,571		125,169
Savings		200,544		242,689
Time deposits		542,597		486,735
	$	1,372,328	$	1,356,568

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

	FOR THE QUARTER ENDED DECEMBER 31,
	2006						2005
	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	$	9,388	$	122	5.20	%	$	8,122	$	80	3.94	%
Investment securities (1)		82,572		1,241	6.01			84,962		984	4.63
FHLB stock		25,424		409	6.43			20,650		259	5.02
Mortgage-backed securities (1)		71,213		786	4.41			90,896		854	3.76
Loans receivable, net (2)		1,777,775		27,334	6.15			1,696,560		25,112	5.92
Total interest-earning assets		1,966,372		29,892	6.08			1,901,190		27,289	5.74
Non-interest-earning assets		97,443						100,693
Total assets	$	2,063,815					$	2,001,883
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	712,966		3,396	1.91		$	774,248		2,610	1.35
Time deposits		541,486		5,966	4.41			487,421		4,123	3.38
Total		1,254,452		9,362	2.99			1,261,669		6,733	2.13
Borrowed funds		546,100		6,698	4.91			472,667		5,146	4.35
Total interest-bearing liabilities		1,800,552		16,060	3.57			1,734,336		11,879	2.74
Non-interest-bearing deposits		115,199						119,374
Non-interest-bearing liabilities		12,695						12,661
Total liabilities		1,928,446						1,866,371
Stockholders’ equity		135,369						135,512
Total liabilities and stockholders’ equity	$	2,063,815					$	2,001,883
Net interest income			$	13,832					$	15,410
Net interest rate spread (3)					2.51	%					3.00	%
Net interest margin (4)					2.81	%					3.24	%

	FOR THE YEARS ENDED DECEMBER 31,
	2006						2005
	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	$	8,885	$	437	4.92	%	$	10,796	$	344	3.19	%
Investment securities (1)		83,999		5,122	6.10			85,942		3,871	4.50
FHLB stock		24,575		1,315	5.35			20,105		907	4.51
Mortgage-backed securities (1)		77,416		3,304	4.27			106,148		3,813	3.59
Loans receivable, net (2)		1,758,230		106,384	6.05			1,624,761		93,864	5.78
Total interest-earning assets		1,953,105		116,562	5.97			1,847,752		102,799	5.56
Non-interest-earning assets		96,742						101,357
Total assets	$	2,049,847					$	1,949,109
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	717,811		11,940	1.66		$	747,401		8,136	1.09
Time deposits		534,056		21,461	4.02			481,585		14,671	3.05
Total		1,251,867		33,401	2.67			1,228,986		22,807	1.86
Borrowed funds		531,265		25,042	4.71			454,806		19,066	4.19
Total interest-bearing liabilities		1,783,132		58,443	3.28			1,683,792		41,873	2.49
Non-interest-bearing deposits		120,482						115,681
Non-interest-bearing liabilities		11,849						14,499
Total liabilities		1,915,463						1,813,972
Stockholders’ equity		134,384						135,137
Total liabilities and stockholders’ equity	$	2,049,847					$	1,949,109
Net interest income			$	58,119					$	60,926
Net interest rate spread (3)					2.69	%					3.07	%
Net interest margin (4)					2.98	%					3.30	%

(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.