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 QUARTERLY AND YEAR-TO-DATE
FINANCIAL RESULTS
TOMS RIVER, NEW JERSEY, October 17, 2013…OceanFirst Financial Corp. (NASDAQ: “OCFC”), (the “Company”), the holding company for OceanFirst Bank (the “Bank”), today announced that diluted earnings per share amounted to $0.29 for the quarter ended September 30, 2013, as compared to $0.28 for the corresponding prior year period. For the nine months ended September 30, 2013, diluted earnings per share amounted to $0.84, as compared to $0.89 for the corresponding prior year period. Highlights for the quarter included:
• | Commercial loans outstanding increased $18.5 million, an annualized growth rate of 13.6%. |
• | The net interest margin stabilized at 3.20%, as compared to 3.21% in the linked quarter, largely the result of higher yielding commercial loans replacing investment securities. |
• | Improved credit metrics supported a decrease in the loan loss provision, as non-performing loans decreased $4.3 million. |
• | Tangible common equity remains strong at a ratio of 9.35%. |
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The Company also announced that the Board of Directors declared its sixty-seventh consecutive quarterly cash dividend on common stock. The dividend for the quarter ended September 30, 2013 of $0.12 per share will be paid on November 8, 2013, to shareholders of record on October 28, 2013.
Chairman and CEO John R. Garbarino observed “strong commercial loan growth helped to further stabilize the net interest margin, and we are encouraged by our improved credit metrics, as both non-performing loans and year-to-date net charge-offs decreased. Strategically, we continue to build our team of proven income producers in several areas, enhancing our prospects for future revenue growth. In the coming quarter we are also consolidating two branch offices and re-structuring our FHLB advance book to help these revenue gains translate into sustainable earnings improvement.”
Results of Operations
Net income for the three and nine months ended September 30, 2013 was $5.0 million and $14.4 million, respectively, or $0.29 per diluted share and $0.84 per diluted share, respectively, as compared to net income of $5.0 million and $16.0 million, respectively, or $0.28 per diluted share and $0.89 per diluted share for the corresponding prior year periods. Net income for the three and nine months ended September 30, 2012 was adversely impacted by a non-recurring expense relating to the departure of the Bank’s former President and Chief Operating Officer of $747,000, net of related expense savings, or $468,000 net of tax benefit. Net income was impacted in the current year periods by lower net interest income and lower other income, partly offset by a reduction in the provision for loan losses as compared to the prior year periods.
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Net interest income for the three and nine months ended September 30, 2013 decreased to $17.5 million and $52.3 million, respectively, as compared to $18.0 million and $55.5 million, respectively, in the same prior year periods, reflecting a lower net interest margin partly offset by slightly higher interest-earning assets. The net interest margin decreased to 3.20% and 3.19%, respectively, for the three and nine months ended September 30, 2013 from 3.28% and 3.39%, respectively, in the same prior year periods, due to a change in the mix of average interest-earning assets from higher-yielding loans receivable into lower-yielding securities. High loan refinance volume earlier in the year also caused yields on loans and mortgage-backed securities to trend downward. The yield on average interest-earning assets decreased to 3.64% and 3.67%, respectively, for the three and nine months ended September 30, 2013, as compared to 3.92% and 4.06%, respectively, for the same prior year periods. The cost of average interest-bearing liabilities decreased to 0.53% and 0.57%, respectively, for the three and nine months ended September 30, 2013, as compared to 0.74% and 0.77%, respectively, in the same prior year periods. Average interest-earning assets increased $1.0 million and $5.9 million, respectively, for the three and nine months ended September 30, 2013, as compared to the same prior year periods. The increases in average interest-earning assets were primarily due to the increases in average securities of $39.5 million and $45.4 million, respectively, for the three and nine months ended September 30, 2013. These increases were partly offset by decreases in average loans receivable, net, of $28.7 million and $40.9 million, respectively, for the three and nine months ended September 30, 2013, as compared to the same prior year periods. The growth in interest-earning assets was primarily funded by increases in average non-interest-bearing deposits, partly offset by decreases in average time deposits and borrowed funds.
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For the three and nine months ended September 30, 2013, the provision for loan losses was $700,000 and $2.6 million, respectively, as compared to $1.4 million and $4.8 million, respectively, for the corresponding prior year periods. The decrease for the three and nine months ended September 30, 2013 was partly due to reductions of $133,000 and $2.5 million, respectively, in net charge-offs as compared to the same prior year periods and a reduction in loans receivable, net at September 30, 2013 as compared to both December 31, 2012 and September 30, 2012. Additionally, non-performing loans decreased $1.8 million at September 30, 2013 as compared to December 31, 2012.
For the three and nine months ended September 30, 2013, other income decreased to $4.6 million and $12.7 million as compared to $4.9 million and $13.7 million in the same prior year periods. The decrease in other income was primarily caused by the net gain on sales of loans decreasing by $716,000 and $1.7 million for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2013, Bankcard services revenue increased $91,000 and $438,000, respectively, and trust and asset management revenue increased $240,000 and $492,000, respectively, as compared to the same prior year periods. The increase in trust and asset management revenue was partly due to an increase in assets under administration to $212.0 million at September 30, 2013 from $172.9 million at December 31, 2012. For the three and nine months ended September 30, 2013, the net gain on the sale of loans decreased to $316,000 and $877,000, respectively, as compared to $1.2 million and $3.1 million in the same prior year periods due to the reclassification of reverse mortgage income into fees and service charges and a decrease in loan sale volume. Additionally, the net gain on the sale of loans for the nine months ended September 30, 2013 was adversely impacted by an addition of $975,000 to the reserve for repurchased loans as compared to an addition of $350,000 in the
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same prior year period. For the three months ended September 30, 2013, there was no provision for repurchased loans as compared to $100,000 in the same prior year period. (Refer to discussion in Asset Quality section regarding the reserve for repurchased loans.) Effective January 1, 2013, income from the origination of reverse mortgage loans is classified as part of fees and service charges as compared to inclusion in the net gain on the sale of loans in prior periods as the Bank no longer closes these loans in its name. The amount of reverse mortgage fees included in fees and service charges for the three and nine months ended September 30, 2013 was $186,000 and $531,000, respectively. The results from other real estate operations declined $228,000 and $55,000, respectively, for the three and nine months ended September 30, 2013, as compared to the same prior year periods. Finally, for the nine months ended September 30, 2013, the net gain on sales of investment securities available for sale decreased to $42,000 from $226,000 in the same prior year period.
Operating expenses amounted to $13.8 million and $40.2 million, respectively, for the three and nine months ended September 30, 2013, as compared to $13.8 million and $39.6 million, respectively, in the same prior year periods. Excluding the $747,000 non-recurring severance expense included in compensation and employee benefits, net of related expense savings, for the three and nine months ended September 30, 2012, operating expenses increased $692,000 and $1.3 million, respectively, as compared to the corresponding prior year periods. Compensation and employee benefits expense, net of the non-recurring severance cost, for the three and nine months ended September 30, 2013 was adversely impacted by recruiting costs and by the decrease in mortgage loan closings from the prior year levels. Lower loan closings in the current periods decreased deferred loan expense, net of sales commissions to mortgage loan representatives, which is reflected as an increase in compensation expense.
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The provision for income taxes was $2.7 million and $7.8 million, respectively, for the three and nine months ended September 30, 2013, as compared to $2.7 million and $8.8 million for the same prior year periods. The effective tax rate was 34.9% and 35.2% for the three and nine months ended September 30, 2013, as compared to 35.1% and 35.5%, respectively, in the same prior year periods.
Financial Condition
Total assets increased by $17.1 million to $2,286.3 million at September 30, 2013, from $2,269.2 million at December 31, 2012. Securities, in the aggregate, increased by $35.5 million, to $583.0 million at September 30, 2013, as compared to $547.5 million at December 31, 2012. During the period, the Company reclassified $536.0 million of securities available-for-sale to securities held-to-maturity as the Company has the intent and ability to hold these securities until maturity. Loans receivable, net, decreased by $775,000, to $1,522.4 million at September 30, 2013 from $1,523.2 million at December 31, 2012, primarily due to prepayments and sale of newly originated 30-year fixed-rate one-to-four family loans. Commercial lending, however, grew $29.9 million during this period and residential construction loans increased $8.1 million as homeowners rebuild from superstorm Sandy.
Deposits increased by $49.2 million, to $1,768.9 million at September 30, 2013, from $1,719.7 million at December 31, 2012 with core deposits, (i.e. all deposits excluding time deposits) growing by $63.8 million. Securities sold under agreements to repurchase with retail customers increased by $9.2 million, to $70.0 million at September 30, 2013, from $60.8 million at December 31, 2012 and Federal Home Loan Bank advances decreased $36.0 million, to $189.0 million at September 30, 2013, from $225.0 million at December 31, 2012. Stockholders’
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equity decreased to $213.8 million at September 30, 2013, as compared to $219.8 million at December 31, 2012. Net income for the period was offset by an increase in accumulated other comprehensive loss of $7.1 million due to the recent rise in interest rates, the repurchase of 533,018 shares of common stock for $8.1 million (average cost per share of $15.21) and the cash dividend on common stock. The reclassification of most available-for-sale securities to held-to-maturity during the third quarter will reduce the risk of accumulated other comprehensive losses that could result in the event of additional increases in interest rates. At September 30, 2013, there were 301,766 shares remaining to be repurchased under the stock repurchase program adopted in the fourth quarter of 2012. Tangible stockholders’ equity per common share was $12.30 at September 30, 2013, as compared to $12.28 at December 31, 2012, benefitting from the reduction in shares outstanding.
Asset Quality
The Company’s non-performing loans totaled $41.6 million at September 30, 2013, a $1.8 million decrease from $43.4 million at December 31, 2012. Included in non-performing loans at September 30, 2013 were $2.7 million in loans which remain adversely impacted by superstorm Sandy which caused substantial disruption in the Bank’s market area on October 29, 2012. Net loan charge-offs decreased to $2.2 million for the nine months ended September 30, 2013, as compared to $4.7 million for the corresponding prior year period.
The reserve for repurchased loans and loss sharing obligations, which is included in other liabilities in the Company’s consolidated statements of financial condition, was $1.5 million at September 30, 2013, a $265,000 increase from December 31, 2012. The increase was due to mostly first quarter activity relating to an additional provision for loans sold to the Federal Home
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Loan Bank (“FHLB”), incurred losses relating to the FHLB loan sales, a comprehensive settlement with one investor relating to existing and anticipated loan repurchase requests, and recoveries of previously charged-off amounts. At September 30, 2013, there were two outstanding loan repurchase requests which the Company is disputing on loans with a total principal balance of $541,000, as compared to 12 outstanding loan repurchase requests with a principal balance of $3.6 million at December 31, 2012.
Strategic Initiatives
Subsequent to quarter-end, the Company made the strategic decision to prepay $159.0 million of Federal Home Loan Bank advances with a weighted average cost of 2.31% and a weighted average term to maturity of 16 months. The pre-tax prepayment fee on these borrowings was $4.3 million, or $0.16 per diluted share, which will be reflected in the fourth quarter’s reported earnings. The prepayment was initially funded by short-term advances, which the Company expects to supplement with deposit growth. Over the next year, the short-term advances will gradually be extended into longer-term liabilities. The transaction will improve net interest income and margin in future periods and, when fully implemented, will reduce the Company’s sensitivity to further interest rate increases.
The Company is focused on growing revenues in commercial lending, trust and asset management, and Bankcard services. In order to fund the required investment in these areas, the Bank reviewed branch expenses and decided to consolidate two branches into newer, in-market OceanFirst Bank facilities. The consolidation is scheduled to occur in the fourth quarter and is expected to result in a non-recurring charge of $630,000.
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Conference Call
As previously announced, the Company will host an earnings conference call on Friday, October 18, 2013 at 11:00 a.m. Eastern time. The direct dial number for the call is (888) 317-6016. 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 10034447 from one hour after the end of the call until January 31, 2014. 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-five 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
In addition to historical information, 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 its subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, the level of prepayments on loans and mortgage-backed securities, 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 are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 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.
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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except per share amounts)
September 30, 2013 | December 31, 2012 | September 30, 2012 | ||||||||||
(unaudited) | (unaudited) | |||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 44,055 | $ | 62,544 | $ | 55,365 | ||||||
Securities available-for-sale, at estimated fair value | 68,968 | 547,450 | 568,420 | |||||||||
Securities held-to-maturity, net (estimated fair value of 517,173 at September 30, 2013) | 514,022 | — | — | |||||||||
Federal Home Loan Bank of New York stock, at cost | 15,211 | 17,061 | 17,148 | |||||||||
Loans receivable, net | 1,522,425 | 1,523,200 | 1,545,640 | |||||||||
Mortgage loans held for sale | 2,566 | 6,746 | 5,598 | |||||||||
Interest and dividends receivable | 6,087 | 5,976 | 6,963 | |||||||||
Other real estate owned, net | 4,259 | 3,210 | 3,628 | |||||||||
Premises and equipment, net | 22,641 | 22,233 | 22,233 | |||||||||
Servicing asset | 4,314 | 4,568 | 4,659 | |||||||||
Bank Owned Life Insurance | 54,233 | 53,167 | 52,806 | |||||||||
Other assets | 27,507 | 23,073 | 21,966 | |||||||||
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Total assets | $ | 2,286,288 | $ | 2,269,228 | $ | 2,304,426 | ||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Deposits | $ | 1,768,914 | $ | 1,719,671 | $ | 1,739,974 | ||||||
Securities sold under agreements to repurchase with retail customers | 69,951 | 60,791 | 72,149 | |||||||||
Federal Home Loan Bank advances | 189,000 | 225,000 | 225,000 | |||||||||
Other borrowings | 27,500 | 27,500 | 27,500 | |||||||||
Due to brokers | — | — | 1,355 | |||||||||
Advances by borrowers for taxes and insurance | 8,230 | 7,386 | 7,296 | |||||||||
Other liabilities | 8,924 | 9,088 | 11,465 | |||||||||
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Total liabilities | 2,072,519 | 2,049,436 | 2,084,739 | |||||||||
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Stockholders’ equity: | ||||||||||||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued | — | — | — | |||||||||
Common stock, $.01 par value, 55,000,000 shares authorized, 33,566,772 shares issued and 17,386,060, 17,894,929 and 18,020,046 shares outstanding at September 30, 2013, December 31, 2012 and September 30, 2012, respectively | 336 | 336 | 336 | |||||||||
Additional paid-in capital | 263,125 | 262,704 | 262,590 | |||||||||
Retained earnings | 206,291 | 198,109 | 196,184 | |||||||||
Accumulated other comprehensive (loss) gain | (7,011 | ) | 49 | 354 | ||||||||
Less: Unallocated common stock held by Employee Stock Ownership Plan | (3,688 | ) | (3,904 | ) | (3,976 | ) | ||||||
Treasury stock, 16,180,712, 15,671,843 and 15,546,726 shares at September 30, 2013, December 31, 2012 and September 30, 2012, respectively | (245,284 | ) | (237,502 | ) | (235,801 | ) | ||||||
Common stock acquired by Deferred Compensation Plan | (660 | ) | (647 | ) | (689 | ) | ||||||
Deferred Compensation Plan Liability | 660 | 647 | 689 | |||||||||
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Total stockholders’ equity | 213,769 | 219,792 | 219,687 | |||||||||
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Total liabilities and stockholders’ equity | $ | 2,286,288 | $ | 2,269,228 | $ | 2,304,426 | ||||||
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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Interest income: | ||||||||||||||||
Loans | $ | 17,403 | $ | 18,716 | $ | 52,493 | $ | 57,642 | ||||||||
Mortgage-backed securities | 1,865 | 2,065 | 5,540 | 6,618 | ||||||||||||
Investment securities and other | 716 | 733 | 2,163 | 2,166 | ||||||||||||
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Total interest income | 19,984 | 21,514 | 60,196 | 66,426 | ||||||||||||
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Interest expense: | ||||||||||||||||
Deposits | 1,107 | 1,907 | 3,607 | 5,960 | ||||||||||||
Borrowed funds | 1,333 | 1,607 | 4,312 | 4,971 | ||||||||||||
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Total interest expense | 2,440 | 3,514 | 7,919 | 10,931 | ||||||||||||
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Net interest income | 17,544 | 18,000 | 52,277 | 55,495 | ||||||||||||
Provision for loan losses | 700 | 1,400 | 2,600 | 4,800 | ||||||||||||
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Net interest income after provision for loan losses | 16,844 | 16,600 | 49,677 | 50,695 | ||||||||||||
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Other income: | ||||||||||||||||
Bankcard services revenue | 943 | 852 | 2,675 | 2,237 | ||||||||||||
Trust and asset management revenue | 628 | 388 | 1,583 | 1,091 | ||||||||||||
Fees and service charges | 2,247 | 1,873 | 6,037 | 5,710 | ||||||||||||
Loan servicing income | 200 | 130 | 528 | 409 | ||||||||||||
Net gain on sales of loans available for sale | 316 | 1,218 | 877 | 3,136 | ||||||||||||
Net gain on sales of investment securities available for sale | — | — | 42 | 226 | ||||||||||||
Net (loss) gain from other real estate operations | (188 | ) | 40 | (112 | ) | (57 | ) | |||||||||
Income from Bank Owned Life Insurance | 419 | 376 | 1,067 | 977 | ||||||||||||
Other | 1 | 1 | 20 | 5 | ||||||||||||
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Total other income | 4,566 | 4,878 | 12,717 | 13,734 | ||||||||||||
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Operating expenses: | ||||||||||||||||
Compensation and employee benefits | 7,397 | 7,347 | 21,014 | 20,978 | ||||||||||||
Occupancy | 1,364 | 1,279 | 4,104 | 3,897 | ||||||||||||
Equipment | 675 | 662 | 2,003 | 1,892 | ||||||||||||
Marketing | 444 | 451 | 1,142 | 1,231 | ||||||||||||
Federal deposit insurance | 538 | 533 | 1,598 | 1,587 | ||||||||||||
Data processing | 1,067 | 914 | 3,002 | 2,738 | ||||||||||||
Check card processing | 454 | 425 | 1,288 | 1,061 | ||||||||||||
Professional fees | 358 | 731 | 1,673 | 1,909 | ||||||||||||
Other operating expense | 1,487 | 1,497 | 4,350 | 4,353 | ||||||||||||
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Total operating expenses | 13,784 | 13,839 | 40,174 | 39,646 | ||||||||||||
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Income before provision for income taxes | 7,626 | 7,639 | 22,220 | 24,783 | ||||||||||||
Provision for income taxes | 2,658 | 2,680 | 7,828 | 8,804 | ||||||||||||
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Net income | $ | 4,968 | $ | 4,959 | $ | 14,392 | $ | 15,979 | ||||||||
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Basic earnings per share | $ | 0.29 | $ | 0.28 | $ | 0.84 | $ | 0.90 | ||||||||
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Diluted earnings per share | $ | 0.29 | $ | 0.28 | $ | 0.84 | $ | 0.89 | ||||||||
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Average basic shares outstanding | 17,047 | 17,561 | 17,145 | 17,837 | ||||||||||||
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Average diluted shares outstanding | 17,210 | 17,621 | 17,194 | 17,896 | ||||||||||||
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OceanFirst Financial Corp.
SELECTED CONSOLIDATED FINANCIAL DATA
(in thousands, except per share amounts)
At September 30, | At December 31, | At September 30, | ||||||||||
2013 | 2012 | 2012 | ||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
Stockholders’ equity to total assets | 9.35 | % | 9.69 | % | 9.53 | % | ||||||
Common shares outstanding (in thousands) | 17,386 | 17,895 | 18,020 | |||||||||
Stockholders’ equity per common share | $ | 12.30 | $ | 12.28 | $ | 12.19 | ||||||
Tangible stockholders’ equity per common share | 12.30 | 12.28 | 12.19 | |||||||||
ASSET QUALITY | ||||||||||||
Non-performing loans: | ||||||||||||
Real estate – one-to-four family | $ | 28,970 | $ | 26,521 | $ | 25,475 | ||||||
Commercial real estate | 7,398 | 11,567 | 11,397 | |||||||||
Consumer | 4,428 | 4,540 | 3,670 | |||||||||
Commercial | 769 | 746 | 631 | |||||||||
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Total non-performing loans | 41,565 | 43,374 | 41,173 | |||||||||
OREO, net | 4,259 | 3,210 | 3,628 | |||||||||
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Total non-performing assets | $ | 45,824 | $ | 46,584 | $ | 44,801 | ||||||
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Delinquent loans 30 to 89 days | $ | 18,965 | (1) | $ | 11,437 | (1) | $ | 11,275 | ||||
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Troubled debt restructurings: | ||||||||||||
Non-performing (included in total non-performing loans above) | $ | 11,886 | $ | 18,160 | $ | 14,772 | ||||||
Performing | 21,523 | 17,733 | 19,621 | |||||||||
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Total troubled debt restructurings | $ | 33,409 | $ | 35,893 | $ | 34,393 | ||||||
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Allowance for loan losses | $ | 20,887 | $ | 20,510 | $ | 18,291 | ||||||
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Allowance for loan losses as a percent of total loans receivable | 1.35 | % | 1.32 | % | 1.17 | % | ||||||
Allowance for loan losses as a percent of total non-performing loans | 50.25 | 47.29 | 44.42 | |||||||||
Non-performing loans as a percent of total loans receivable | 2.68 | 2.80 | 2.63 | |||||||||
Non-performing assets as a percent of total assets | 2.00 | 2.05 | 1.94 |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
PERFORMANCE RATIOS (ANNUALIZED) | ||||||||||||||||
Return on average assets | 0.86 | % | 0.86 | % | 0.83 | % | 0.93 | % | ||||||||
Return on average stockholders’ equity | 9.17 | 9.08 | 8.76 | 9.75 | ||||||||||||
Interest rate spread | 3.11 | 3.18 | 3.10 | 3.29 | ||||||||||||
Interest rate margin | 3.20 | 3.28 | 3.19 | 3.39 | ||||||||||||
Operating expenses to average assets | 2.39 | 2.39 | 2.33 | 2.31 | ||||||||||||
Efficiency ratio | 62.34 | 60.49 | 61.81 | 57.27 |
(1) | Delinquent loans 30 to 89 days excluded $16.5 million at December 31, 2012, of loans impacted by superstorm Sandy for which the Bank had granted a temporary payment plan. Delinquent loans 30 to 89 days at September 30, 2013 includes $475,000 of loans impacted by superstorm Sandy. |
12
OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(in thousands)
LOANS RECEIVABLE
At September 30, 2013 | At December 31, 2012 | |||||||||||
Real estate: | ||||||||||||
One-to-four family | $ | 768,665 | $ | 809,705 | ||||||||
Commercial real estate, multi-family and land | 497,461 | 475,155 | ||||||||||
Residential construction | 17,087 | 9,013 | ||||||||||
Consumer | 199,761 | 198,143 | ||||||||||
Commercial and industrial | 65,584 | 57,967 | ||||||||||
|
|
|
| |||||||||
Total loans | 1,548,558 | 1,549,983 | ||||||||||
Loans in process | (6,530 | ) | (3,639 | ) | ||||||||
Deferred origination costs, net | 3,850 | 4,112 | ||||||||||
Allowance for loan losses | (20,887 | ) | (20,510 | ) | ||||||||
|
|
|
| |||||||||
Total loans, net | 1,524,991 | 1,529,946 | ||||||||||
Less: mortgage loans held for sale | 2,566 | 6,746 | ||||||||||
|
|
|
| |||||||||
Loans receivable, net | $ | 1,522,425 | $ | 1,523,200 | ||||||||
|
| �� |
|
| ||||||||
Mortgage loans serviced for others | $ | 813,481 | $ | 840,900 | ||||||||
Average Yield | ||||||||||||
Loan pipeline: | ||||||||||||
Commercial | 3.97 | % | $ | 38,361 | $ | 23,145 | ||||||
Construction/permanent | 4.13 | 14,605 | 2,860 | |||||||||
One-to-four family | 4.02 | 19,897 | 43,464 | |||||||||
Consumer | 4.13 | 4,939 | 4,593 | |||||||||
|
|
|
| |||||||||
$ | 77,802 | $ | 74,062 | |||||||||
|
|
|
|
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Loan originations: | ||||||||||||||||
Commercial | $ | 49,522 | $ | 23,251 | $ | 97,216 | $ | 99,737 | ||||||||
Construction/permanent | 9,887 | 2,125 | 17,470 | 6,221 | ||||||||||||
One-to-four family | 45,708 | 72,137 | 159,451 | 204,511 | ||||||||||||
Consumer | 19,720 | 12,549 | 46,432 | 51,905 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 124,837 | $ | 110,062 | $ | 320,569 | $ | 362,374 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Loans sold | $ | 19,194 | $ | 45,097 | $ | 88,328 | $ | 127,683 | ||||||||
Net charge-offs | 633 | 766 | 2,223 | 4,739 |
DEPOSITS
At September 30, 2013 | At December 31, 2012 | |||||||
Type of Account | ||||||||
Non-interest-bearing | $ | 217,061 | $ | 179,074 | ||||
Interest-bearing checking | 924,694 | 940,190 | ||||||
Money market deposit | 124,350 | 118,154 | ||||||
Savings | 291,131 | 256,035 | ||||||
Time deposits | 211,678 | 226,218 | ||||||
|
|
|
| |||||
$ | 1,768,914 | $ | 1,719,671 | |||||
|
|
|
|
13
OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
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 | $ | 46,311 | $ | 16 | 0.14 | % | $ | 55,475 | $ | 15 | 0.11 | % | ||||||||||||
Securities (1) | 613,929 | 2,394 | 1.56 | 574,453 | 2,586 | 1.80 | ||||||||||||||||||
FHLB stock | 17,087 | 171 | 4.00 | 17,695 | 197 | 4.45 | ||||||||||||||||||
Loans receivable, net (2) | 1,519,002 | 17,403 | 4.58 | 1,547,696 | 18,716 | 4.84 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 2,196,329 | 19,984 | 3.64 | 2,195,319 | 21,514 | 3.92 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Non-interest-earning assets | 115,016 | 116,227 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 2,311,345 | $ | 2,311,546 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Transaction deposits | $ | 1,317,181 | 387 | 0.12 | $ | 1,317,658 | 971 | 0.29 | ||||||||||||||||
Time deposits | 211,584 | 720 | 1.36 | 238,133 | 936 | 1.57 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 1,528,765 | 1,107 | 0.29 | 1,555,791 | 1,907 | 0.49 | ||||||||||||||||||
Borrowed funds | 329,281 | 1,333 | 1.62 | 335,231 | 1,607 | 1.92 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 1,858,046 | 2,440 | 0.53 | 1,891,022 | 3,514 | 0.74 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Non-interest-bearing deposits | 219,723 | 183,780 | ||||||||||||||||||||||
Non-interest-bearing liabilities | 16,827 | 18,350 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities | 2,094,596 | 2,093,152 | ||||||||||||||||||||||
Stockholders’ equity | 216,749 | 218,394 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,311,345 | $ | 2,311,546 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income | $ | 17,544 | $ | 18,000 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest rate spread (3) | 3.11 | % | 3.18 | % | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest margin (4) | 3.20 | % | 3.28 | % | ||||||||||||||||||||
|
|
|
|
FOR THE NINE MONTHS ENDED SEPTEMBER 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
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 | $ | 56,142 | $ | 61 | 0.14 | % | $ | 54,133 | $ | 58 | 0.14 | % | ||||||||||||
Securities (1) | 598,098 | 7,108 | 1.58 | 552,661 | 8,100 | 1.95 | ||||||||||||||||||
FHLB stock | 17,113 | 534 | 4.16 | 17,749 | 626 | 4.70 | ||||||||||||||||||
Loans receivable, net (2) | 1,514,693 | 52,493 | 4.62 | 1,555,556 | 57,642 | 4.94 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 2,186,046 | 60,196 | 3.67 | 2,180,099 | 66,426 | 4.06 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Non-interest-earning assets | 117,516 | 108,665 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 2,303,562 | $ | 2,288,764 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Transaction deposits | $ | 1,322,095 | 1,389 | 0.14 | $ | 1,295,640 | 2,887 | 0.30 | ||||||||||||||||
Time deposits | 216,198 | 2,218 | 1.37 | 247,704 | 3,073 | 1.65 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 1,538,293 | 3,607 | 0.31 | 1,543,344 | 5,960 | 0.51 | ||||||||||||||||||
Borrowed funds | 325,251 | 4,312 | 1.77 | 340,563 | 4,971 | 1.95 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 1,863,544 | 7,919 | 0.57 | 1,883,907 | 10,931 | 0.77 | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Non-interest-bearing deposits | 204,568 | 169,400 | ||||||||||||||||||||||
Non-interest-bearing liabilities | 16,463 | 16,935 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities | 2,084,575 | 2,070,242 | ||||||||||||||||||||||
Stockholders’ equity | 218,987 | 218,522 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,303,562 | $ | 2,288,764 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest income | $ | 52,277 | $ | 55,495 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest rate spread (3) | 3.10 | % | 3.29 | % | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest margin (4) | 3.19 | % | 3.39 | % | ||||||||||||||||||||
|
|
|
|
(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. |