OceanFirst Financial (OCFC) 8-K/A Announces Revised Fourth Quarter

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 REVISED FOURTH QUARTER

AND 2006 EARNINGS

TOMS RIVER, NEW JERSEY, March 23, 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 a loss of $.13. For the year ended December 31, 2006 diluted earnings per share was $1.07. These results have been revised from the earnings results the Company reported in its January 18, 2007 press release in which the Company reported diluted earnings per share for the quarter and year ended December 31, 2006 of $.40 and $1.59.

The Company recently received information regarding the exposure of Columbia Home Loans, LLC, (“Columbia”), the Company’s mortgage banking subsidiary, to repurchase subprime loans originated and sold by Columbia. For the year ended December 31, 2006, Columbia originated $728.3 million of loans, which represented 62.9% of total Company-wide loan originations. Of this amount, $299.8 million or 41.2% of the total originated, are considered

subprime mortgage loans which are made to individuals whose borrowing needs are generally not fulfilled by traditional loan products because they do not satisfy the credit documentation or other underwriting standards prescribed by conventional mortgage lenders and loan buyers. In April 2006, Columbia began to offer a subprime loan product that provided the borrower with 100% financing relative to the value of the underlying property. Columbia originated $148.2 million of these loans in 2006. These mortgage loans are generally underwritten to investor specifications, subjected to investor due diligence and subsequently sold to investors. The loan sale agreements typically require Columbia to repurchase the loan in the event of 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.

Recently, senior executives of the Company learned of the higher than expected incidence of demands for repurchase due to early payment defaults. Upon further investigation, the Company learned that Columbia officers failed to report to Company management, the demands for repurchase due to early payment default in accordance with the Company’s established procedures. In addition, certain loan sale agreements were renegotiated to expand the default period with investors or early payment default demands were accepted without the requisite delegated authority. Since the discovery of this information, the Company has discontinued the origination of subprime loans.

Based on the information currently available to the Company, a reserve for repurchased loans has been established for $9.6 million which is included in other liabilities in the Company’s consolidated statement of financial condition with a corresponding provision which reduced the net (loss) gain on sale of loans to a loss of $7.1 million and a gain of $1.4 million for the quarter and year ended December 31, 2006, respectively. In addition, the Company did not meet financial targets required for certain executive officers to be paid a bonus under the Company’s incentive compensation program. Accordingly, no bonuses were paid to the named executive officers of the Company, which has been reflected in this revision. The previously issued earnings release included bonuses in the amount of $275,000 to the named executive officers.

Management is required to assess the Company’s internal control over financial reporting as of December 31, 2006. Based on this assessment, management will disclose in Form 10-K that the Company’s internal control over financial reporting was not effective as of December 31, 2006 due to the existence of the following material weakness identified by management: The Company’s policies and procedures were not effective to provide for the proper evaluation and assessment of the adequacy of the reserve for repurchased loans at its mortgage banking subsidiary. Specifically, the Company lacked an effective process to ensure that the exercise of loan repurchase requests by purchasers of its loans were timely identified and incorporated properly in the analysis of its reserve for repurchased loans. To address the material weakness, in the first quarter of 2007 the Company enhanced its policies and procedures related to the quarterly evaluation of the adequacy of the reserve for repurchased loans, modified its mortgage loan product menu to eliminate the origination of subprime loans and has taken disciplinary action against certain officers of Columbia responsible for not following established policies and procedures. The Company continues to investigate this matter to determine further actions, if any, that may be required.

Conference Call

The Company will host a conference call on Monday, March 26, 2007 at 9:00 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 #236182, from one hour after the end of the call until midnight on Monday, April 2, 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 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 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		9,718			6,494
Total assets	$	2,077,002		$	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		31,629			9,117
Total liabilities		1,944,682			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		164,121			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		132,320			138,784
Total liabilities and stockholders’ equity	$	2,077,002		$	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 (loss) income:
Loan servicing income		106			131		515			280
Fees and service charges		2,633			2,459		10,488			9,434
Net (loss) gain on sales of loans and securities available for sale		(7,115	)		3,104		1,358			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 (loss) income		(3,963	)		5,984		13,608			24,090
Operating expenses:
Compensation and employee benefits		6,564			7,965		29,317			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		12,156			14,116		52,381			54,834
(Loss)income before provision for income taxes		(2,337	)		7,278		19,196			29,832
(Benefit) provision for income taxes		(898	)		2,432		6,563			10,335
Net (loss) income	$	(1,439	)	$	4,846	$	12,633		$	19,497
Basic (loss) earnings per share	$	(0.13	)	$	0.41	$	1.09		$	1.65
Diluted (loss) earnings per share	$	(0.13	)	$	0.40	$	1.07		$	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 (loss) earnings (1)	$	(705	)	$	5,598	$	15,521		$	22,479
Diluted cash (loss) earnings per share	$	(0.06	)	$	0.46	$	1.32		$	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		6.37	%		6.99	%
Common shares outstanding (in thousands)		12,262			12,699
Stockholders’ equity per common share	$	10.79		$	10.93
Tangible stockholders’ equity per common share		10.70			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		(0.28	)%		0.97	%		0.62	%		1.00	%
Return on average stockholders’ equity		(4.25	)		14.30			9.40			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		2.36			2.82			2.56			2.81
Efficiency ratio		123.17			65.98			73.03			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 (loss) income	$	(1,439	)	$	4,846		$	12,633		$	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 (loss) earnings	$	(705	)	$	5,598		$	15,521		$	22,479
Basic cash (loss) earnings per share	$	(0.06	)	$	0.48		$	1.34		$	1.91
Diluted cash (loss) earnings per share	$	(0.06	)	$	0.46		$	1.32		$	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		97,480						100,693
Total assets	$	2,063,852					$	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		12,798						12,661
Total liabilities		1,928,549						1,866,371
Stockholders’ equity		135,303						135,512
Total liabilities and stockholders’ equity	$	2,063,852					$	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		96,752						101,357
Total assets	$	2,049,857					$	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		11,875						14,499
Total liabilities		1,915,489						1,813,972
Stockholders’ equity		134,368						135,137
Total liabilities and stockholders’ equity	$	2,049,857					$	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.