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

Exhibit 99.1

Company Contact:

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 16.7% QUARTERLY EARNINGS

PER SHARE GROWTH

TOMS RIVER, NEW JERSEY, April 20, 2011…OceanFirst Financial Corp. (NASDAQ:”OCFC”), the holding company for OceanFirst Bank (the “Bank”), today announced that diluted earnings per share increased 16.7%, to $0.28, for the quarter ended March 31, 2011 from $0.24, for the corresponding prior year quarter. Additional highlights for the quarter included:

• The net interest margin expanded on a linked quarter basis to 3.60% for the quarter ended March 31, 2011, as compared to 3.52% for the quarter ended December 31, 2010.

• Non-performing loans decreased by $1.8 million, or 4.9%, at March 31, 2011 as compared to December 31, 2010 and represent 2.15% of total loans receivable.

• Total revenue for the quarter ended March 31, 2011 (i.e., net interest income and total other income) increased 3.9% compared to the same prior year quarter as the balance sheet grew by 2.9% year over year.

• Return on average stockholders’ equity was 10.12% for the quarter ended March 31, 2011. The Company remains well-capitalized with the tangible common equity ratio increasing to 9.10% at March 31, 2011.

The Company also announced that the Board of Directors declared its fifty-seventh consecutive quarterly cash dividend on common stock. The dividend for the quarter ended March 31, 2011 was declared in the amount of $0.12 per share to be paid on May 13, 2011 to shareholders of record on May 2, 2011.

Chairman and CEO John R. Garbarino observed, “Our strong earnings, healthy capital position and stabilizing credit metrics continue to provide a compelling value proposition for our shareholders.”

Results of Operations

Net income for the three months ended March 31, 2011 was $5.1 million, or $0.28 per diluted share, as compared to net income of $4.4 million, or $0.24 per diluted share, for the corresponding prior year period.

Net interest income for the quarter ended March 31, 2011 increased to $19.3 million, as compared to $19.0 million in the same prior year period, reflecting greater interest-earning assets partly offset by a lower year-over-year net interest margin. Average interest-earning assets increased $128.3 million, or 6.3%, to $2,149.0 million for the quarter ended March 31, 2011, as compared to the same prior year period. The increase in average interest-earning assets was primarily due to the increase in average investment securities and mortgage-backed securities, which together increased $98.2 million, or 27.0%, for the quarter ended March 31, 2011, as compared to the same prior year period. The net interest margin decreased to 3.60% for the quarter ended March 31, 2011 from 3.76% in the same prior year period due to the investment of

strong deposit flows into interest-earning deposits and investment securities at a modest net interest spread. Additionally, high loan refinance volume caused yields on loans and mortgage-backed securities to reset downward. The yield on average interest-earning assets decreased to 4.52% for the quarter ended March 31, 2011, as compared to 4.96% in the same prior year period. The cost of average interest-bearing liabilities decreased to 1.04% for the quarter ended March 31, 2011, as compared to 1.35% in the same prior year period. The decrease in the cost of interest-bearing liabilities was partly offset by an increase of $99.6 million in average interest-bearing liabilities for the three months ended March 31, 2011, as compared to the same prior year period consisting of an increase in average interest-bearing deposits of $263.4 million and a decrease in average borrowed funds of $163.8 million. For the quarter ended March 31, 2011, the net interest margin increased from the prior linked quarter of 3.52%, primarily due to a decrease in the cost of transaction deposits.

For the quarter ended March 31, 2011, the provision for loan losses decreased to $1.7 million, as compared to $2.2 million for the corresponding prior year period. The decreased provision is primarily due to lower levels of non-performing loans and partially due to lower loan balances, as compared to December 31, 2010. Additionally, net charge-offs for the quarter ended March 31, 2011 were comparable to the fourth quarter of 2010 and lower than the corresponding prior year quarter.

Other income increased to $3.5 million for the quarter ended March 31, 2011, as compared to $3.0 million in the same prior year period. Fees and service charges increased to $2.7 million for the quarter ended March 31, 2011, as compared to $2.6 million for the corresponding prior year period due to higher fees from merchant services and investment services. The net gain on sales of loans increased to $759,000 for the quarter ended March 31, 2011, as compared to $503,000 for the corresponding prior year period due to an increase in the volume of loans sold. The net loss from other real estate operations was $366,000 for the quarter ended March 31, 2011, as compared to a loss of $335,000 in the same prior year period due to write-downs in the value of properties previously acquired.

Operating expenses increased by 3.4%, to $13.1 million for the quarter ended March 31, 2011, as compared to $12.7 million for the corresponding prior year period. The increase was primarily due to compensation and employee benefits costs, which increased by $512,000, or 7.8%, to $7.0 million for the quarter ended March 31, 2011, as compared to the corresponding prior year period. Occupancy expense decreased by $269,000 for the quarter ended March 31, 2011, as compared to the corresponding prior year period due to a $184,000 benefit from the negotiated settlement of the remaining office lease obligation at Columbia Home Loans, LLC (“Columbia”), the Company’s mortgage banking subsidiary, which was shuttered in the fourth quarter of 2007. Federal deposit insurance expense for the quarter ended March 31, 2011 increased by $107,000 from the corresponding prior year period primarily due to higher deposit balances.

The provision for income taxes was $2.9 million for the quarter ended March 31, 2011, as compared to $2.6 million for the same prior year period. The effective tax rate decreased to 35.9% for the quarter ended March 31, 2011, as compared to 37.4% in the same prior year period.

Financial Condition

Total assets increased by $12.0 million, or 0.5%, to $2,263.3 million at March 31, 2011, from $2,251.3 million at December 31, 2010. Investment securities available for sale increased by 36.3%, to $125.2 million at March 31, 2011, as compared to $91.9 million at December 31, 2010, due to purchases of government agency securities. Mortgage-backed securities available for sale increased by 2.0%, to $348.0 million at March 31, 2011, as compared to $341.2 million at December 31, 2010, due to purchases of mortgage-backed securities and collateralized

mortgage obligations issued by U.S. government sponsored enterprises. Loans receivable, net decreased by $24.5 million, or 1.5%, to $1,636.3 million at March 31, 2011, from $1,660.8 million at December 31, 2010, primarily due to sales and prepayments of one-to-four family loans.

Deposits decreased by $18.2 million, or 1.1%, to $1,645.8 million at March 31, 2011 from $1,664.0 million at December 31, 2010. The decline was concentrated in time deposits, which decreased $12.0 million, as the Bank continued to moderate its pricing for this product. Partly as a result of the decrease in deposits, Federal Home Loan Bank advances increased $25.7 million, to $290.7 million at March 31, 2011 from $265.0 million at December 31, 2010. Stockholders’ equity increased 2.4%, to $206.0 million at March 31, 2011, as compared to $201.3 million at December 31, 2010, primarily due to net income and a reduction in accumulated other comprehensive loss partly offset by the cash dividend on common stock.

Asset Quality

The Company’s non-performing loans totaled $35.7 million at March 31, 2011, a $1.8 million decrease from $37.5 million at December 31, 2010, primarily due to a decrease of $1.2 million relating to commercial real estate loans. Non-performing loans at March 31, 2011 include $661,000 of loans repurchased due to early payment default that were written down to market value on the date of repurchase and $1.3 million of loans previously held for sale that were also written down to market value. Net loan charge-offs decreased to $970,000 for the three months ended March 31, 2011, as compared to $1.3 million for the corresponding prior year period. For the quarter ended March 31, 2011 net charge-offs included $121,000 of loans originated by Columbia.

The reserve for repurchased loans, which is included in other liabilities in the Company’s consolidated statements of financial condition, was $809,000 at March 31, 2011, unchanged

from December 31, 2010. There was no provision for repurchased loans and no charge-offs during the quarter ended March 31, 2011. At March 31, 2011, there were two outstanding loan repurchase requests on loans with a total principal balance of $302,000 which the Company is contesting.

Conference Call

As previously announced, the Company will host an earnings conference call on Thursday, April 21, 2011 at 11:00 a.m. Eastern time. The direct dial number for the call is (877) 317-6789. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (877) 344-7529, Replay Conference Number 449666, from one hour after the end of the call until May 3, 2011. The conference call, as well as the replay, are also available (listen-only) by internet webcast atwww.oceanfirst.com in the Investor Relations section.

*    *    *

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a federally-chartered savings bank with $2.3 billion in assets and twenty-three 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 by visiting us atwww.oceanfirst.com.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the Private Securities Reform Act of 1995, 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,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. 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, levels of unemployment in the Bank’s lending area, 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 are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 and 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, 2011			December 31, 2010			March 31, 2010
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	31,362		$	31,455		$	20,884
Investment securities available for sale		125,240			91,918			39,177
Federal Home Loan Bank of New York stock, at cost		18,370			16,928			27,906
Mortgage-backed securities available for sale		347,966			341,175			367,189
Loans receivable, net		1,636,251			1,660,788			1,640,149
Mortgage loans held for sale		2,926			6,674			1,668
Interest and dividends receivable		6,760			6,446			6,818
Real estate owned, net		1,914			2,295			2,864
Premises and equipment, net		22,449			22,488			21,862
Servicing asset		5,466			5,653			6,147
Bank Owned Life Insurance		41,062			40,815			40,166
Other assets		23,517			24,695			24,403
Total assets	$	2,263,283		$	2,251,330		$	2,199,233
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,645,788		$	1,663,968		$	1,381,108
Securities sold under agreements to repurchase with retail customers		75,514			67,864			67,969
Federal Home Loan Bank advances		290,700			265,000			521,100
Other borrowings		27,500			27,500			27,500
Advances by borrowers for taxes and insurance		7,855			6,947			8,047
Other liabilities		9,940			18,800			6,328
Total liabilities		2,057,297			2,050,079			2,012,052
Stockholders’ equity:
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 shares issued and 18,844,232, 18,822,556 and 18,821,956 shares outstanding at March 31, 2011, December 31, 2010 and March 31, 2010, respectively		336			336			336
Additional paid-in capital		260,760			260,739			259,837
Retained earnings		177,624			174,677			165,277
Accumulated other comprehensive loss		(4,124	)		(5,560	)		(9,102	)
Less: Unallocated common stock held by Employee Stock Ownership Plan		(4,411	)		(4,484	)		(4,703	)
Treasury stock, 14,722,540, 14,744,216 and 14,744,816 shares at March 31, 2011, December 31, 2010 and March 31, 2010, respectively		(224,199	)		(224,457	)		(224,464	)
Common stock acquired by Deferred Compensation Plan		950			946			943
Deferred Compensation Plan Liability		(950	)		(946	)		(943	)
Total stockholders’ equity		205,986			201,251			187,181
Total liabilities and stockholders’ equity	$	2,263,283		$	2,251,330		$	2,199,233

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the three months ended March 31,
	2011			2010
	(unaudited)
Interest income:
Loans	$	21,164		$	21,984
Mortgage-backed securities		2,563			2,762
Investment securities and other		564			330
Total interest income		24,291			25,076
Interest expense:
Deposits		2,909			3,432
Borrowed funds		2,045			2,674
Total interest expense		4,954			6,106
Net interest income		19,337			18,970
Provision for loan losses		1,700			2,200
Net interest income after provision for loan losses		17,637			16,770
Other income:
Loan servicing income		96			46
Fees and service charges		2,722			2,557
Net gain on sales of loans available for sale		759			503
Net loss from other real estate operations		(366	)		(335	)
Income from Bank Owned Life Insurance		248			196
Other		—			1
Total other income		3,459			2,968
Operating expenses:
Compensation and employee benefits		7,042			6,530
Occupancy		1,195			1,464
Equipment		647			476
Marketing		336			304
Federal deposit insurance		741			634
Data processing		883			830
Legal		256			296
Check card processing		320			317
Accounting and audit		140			143
General and administrative		1,568			1,708
Total operating expenses		13,128			12,702
Income before provision for income taxes		7,968			7,036
Provision for income taxes		2,862			2,632
Net income	$	5,106		$	4,404
Basic earnings per share	$	0.28		$	0.24
Diluted earnings per share	$	0.28		$	0.24
Average basic shares outstanding		18,162			18,132
Average diluted shares outstanding		18,211			18,180

OceanFirst Financial Corp.

SELECTED CONSOLIDATED FINANCIAL DATA

(in thousands, except per share amounts)

	At March 31, 2011			At December 31, 2010			At March 31,2010
STOCKHOLDERS’ EQUITY
Stockholders’ equity to total assets		9.10	%		8.94	%		8.51	%
Common shares outstanding (in thousands)		18,844			18,823			18,822
Stockholders’ equity per common share	$	10.93		$	10.69		$	9.94
Tangible stockholders’ equity per common share		10.93			10.69			9.94
ASSET QUALITY
Non-performing loans:
Real estate – one-to-four family	$	26,278		$	26,577		$	22,633
Commercial real estate		4,651			5,849			4,844
Construction		368			368			368
Consumer		4,272			4,626			3,992
Commercial		117			117			466
Total non-performing loans		35,686			37,537			32,303
REO, net		1,914			2,295			2,864
Total non-performing assets	$	37,600		$	39,832		$	35,167
Delinquent loans 30 to 89 days	$	18,191		$	14,421		$	11,478
Allowance for loan losses	$	20,430		$	19,700		$	15,632
Allowance for loan losses as a percent of total loans receivable		1.23	%		1.17	%		0.94	%
Allowance for loan losses as a percent of non-performing loans		57.25			52.48			48.39
Non-performing loans as a percent of total loans receivable		2.15			2.23			1.95
Non-performing assets as a percent of total assets		1.66			1.77			1.60

	For the three months ended March 31,
	2011			2010
PERFORMANCE RATIOS (ANNUALIZED)
Return on average assets		0.90	%		0.83	%
Return on average stockholders’ equity		10.12			9.61
Interest rate spread		3.48			3.61
Interest rate margin		3.60			3.76
Operating expenses to average assets		2.32			2.39
Efficiency ratio		57.59			57.90

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(in thousands)

LOANS RECEIVABLE

	At March 31, 2011			At December 31, 2010
Real estate:
One-to-four family	$	933,261		$	955,063
Commercial real estate, multi-family and land		434,888			435,127
Construction		11,318			13,748
Consumer		202,608			205,725
Commercial		75,951			76,692
Total loans		1,658,026			1,686,355
Loans in process		(3,187	)		(4,055	)
Deferred origination costs, net		4,768			4,862
Allowance for loan losses		(20,430	)		(19,700	)
Total loans, net		1,639,177			1,667,462
Less: mortgage loans held for sale		2,926			6,674
Loans receivable, net	$	1,636,251		$	1,660,788
Mortgage loans serviced for others	$	905,163		$	913,778
Loan pipeline		73,464			84,113

	For the three months  ended March 31,
	2011		2010
Loan originations	$	102,949	$	107,668
Loans sold		40,218		29,283
Net charge-offs		970		1,291

DEPOSITS

	At March 31, 2011		At December 31, 2010
Type of Account
Non-interest-bearing	$	137,545	$	126,429
Interest-bearing-checking		904,658		920,324
Money market deposit		111,203		108,421
Savings		219,274		223,650
Time deposits		273,108		285,144
	$	1,645,788	$	1,663,968

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

	FOR THE THREE MONTHS ENDED MARCH 31,
	2011							2010
	AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST			AVERAGE BALANCE		INTEREST		AVERAGE YIELD/ COST
	(Dollars in thousands)
Assets
Interest-earning assets:
Interest-earning deposits and short-term investments	$	21,996	$	15		.27	%	$	—	$	—		—	%
Investment securities (1)		126,090		299		.95			55,971		126		.90
FHLB stock		17,534		250		5.70			24,284		204		3.36
Mortgage-backed securities (1)		335,602		2,563		3.05			307,528		2,762		3.59
Loans receivable, net (2)		1,647,750		21,164		5.14			1,632,904		21,984		5.39
Total interest-earning assets		2,148,972		24,291		4.52			2,020,687		25,076	��	4.96
Non-interest-earning assets		112,969							107,697
Total assets	$	2,261,941						$	2,128,384
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Transaction deposits	$	1,255,244		1,665		.53		$	965,181		1,984		.82
Time deposits		279,566		1,244		1.78			306,230		1,448		1.89
Total		1,534,810		2,909		.76			1,271,411		3,432		1.08
Borrowed funds		373,792		2,045		2.19			537,561		2,674		1.99
Total interest-bearing liabilities		1,908,602		4,954		1.04			1,808,972		6,106		1.35
Non-interest-bearing deposits		130,227							113,518
Non-interest-bearing liabilities		21,358							22,540
Total liabilities		2,060,187							1,945,030
Stockholders’ equity		201,754							183,354
Total liabilities and stockholders’ equity	$	2,261,941						$	2,128,384
Net interest income			$	19,337						$	18,970
Net interest rate spread (3)						3.48	%						3.61	%
Net interest margin (4)						3.60	%						3.76	%

(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.