OCEANFIRST FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - OCEANFIRST FINANCIAL CORP	ocfc8-kearningsrelease01x2.htm

Exhibit 99.1



		Press Release

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 ANNUAL

FINANCIAL RESULTS

TOMS RIVER, NEW JERSEY, JANUARY 26, 2017…OceanFirst Financial Corp. (NASDAQ:"OCFC"), (the "Company"), the holding company for OceanFirst Bank (the "Bank"), today announced that diluted earnings per share were $0.22 for the quarter ended December 31, 2016, as compared to $0.31 for the corresponding prior year quarter. For the year ended December 31, 2016, diluted earnings per share were $0.98, as compared to $1.21 for the corresponding prior year period.

The results of operations for the quarter and the year ended December 31, 2016 include merger related expenses, which decreased net income, net of tax benefit, by $4.5 million and $11.9 million, respectively. Excluding this item, core earnings for the quarter and year ended December 31, 2016 were $10.6 million, or $0.38 per diluted share, and $35.0 million, or $1.49 per diluted share, respectively. (Please refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of merger related expenses, certain other expenses incurred in the second quarter of 2016, and quantification of core earnings).

Highlights for the quarter are described below.


•	On November 30, 2016, the Company completed its acquisition of Ocean Shore Holding Company ("Ocean Shore"), which added $995.9 million to assets, $774.0 million to loans,

and $875.1 million to deposits. The Company anticipates full integration of Ocean Shore’s operations and systems in May 2017.


•	On October 15, 2016, the Bank completed the systems integration and rebranding effort related to the acquisition of Cape Bancorp, Inc. ("Cape"), which had been operated as a division of OceanFirst Bank since the closing on May 2, 2016.


•	Non-performing loans decreased 25.8%, to $13.6 million, at December 31, 2016, from $18.3 million at December 31, 2015. Non-performing loans as a percent of total loans receivable decreased to 0.35% at December 31, 2016, from 0.91% at December 31, 2015, the lowest level in the past 10 years.

Chairman and Chief Executive Officer Christopher D. Maher reflected on the Company's results, "With the Ocean Shore closing on November 30^th and the full systems conversion and rebranding of Cape completed, we are pleased to include the stockholders, employees and customers of both organizations in the OceanFirst family." Mr. Maher added, "Throughout 2017 we will be focused on effectively deploying excess liquidity and reducing operating expenses following the two acquisitions completed in 2016."

The Company continues to focus on organic growth while actively managing expense levels. Expense reductions associated with the successful systems integration of Cape in the fourth quarter of 2016 will be fully realized in the first quarter of 2017. Initial cost savings were realized at the time of the Ocean Shore acquisition on November 30, 2016, with incremental savings expected after the second quarter of 2017 due to the anticipated systems integration. The Company also expects to realize significant cost savings from the consolidation of branches. The Company's Board of Directors has approved the elimination of 10 such branches in the legacy Cape and Ocean Shore market area by mid-year 2017, with an expected annualized cost savings of $3.6 million. Further, the Company expects to consolidate other branches in its central New Jersey market area by the end of the year. These initiatives will allow the Company to continue to invest in commercial banking and electronic delivery channels while meeting the efficiency targets established in connection with the recent acquisitions.

The Company also announced that the Board of Directors declared its eightieth consecutive quarterly cash dividend on common stock. The dividend for the quarter ended December 31, 2016 of $0.15 per share will be paid on February 17, 2017 to stockholders of record on February 6, 2017.

Results of Operations

On July 31, 2015, the Company completed its acquisition of Colonial American Bank ("Colonial American"), which added $142.4 million to assets, $121.2 million to loans, and $123.3 million to deposits. Colonial American’s results of operations are included in the consolidated results for the quarter and year ended December 31, 2016, but are only included in the results of operations for the period from August 1, 2015 through December 31, 2015.

On May 2, 2016, the Company completed its acquisition of Cape and its results of operations from May 2, 2016 through December 31, 2016 are included in the consolidated results for the quarter and year ended December 31, 2016, but are not included in the results of operations for the corresponding prior year periods.

On November 30, 2016, the Company completed its acquisition of Ocean Shore and its results of operations from December 1, 2016 through December 31, 2016 are included in the consolidated results for the quarter and year ended December 31, 2016, but are not included in the results of operations for the corresponding prior year periods.

Net income for the quarter ended December 31, 2016, was $6.1 million, or $0.22 per diluted share, as compared to $5.2 million, or $0.31 per diluted share, for the corresponding prior year period. Net income for the year ended December 31, 2016, was $23.0 million, or $0.98 per diluted share, as compared to $20.3 million, or $1.21 per diluted share, for the corresponding prior year period. Net income for the quarter and year ended December 31, 2016 includes merger related expenses, net of tax benefit, of $4.5 million and $11.8 million, respectively, as compared to $441,000 and $1.3 million, respectively, for the same prior year periods. Additionally, net income for the year ended December 31, 2016, includes an FHLB advance prepayment fee of $136,000, and a loss on the sale of investment securities available-for-sale of $12,000.

Excluding these items, diluted earnings per share increased over the prior year period due to higher net interest income and other income partially offset by increases in operating expenses, provision for loan losses, and average diluted shares outstanding.

Excluding merger related expenses, diluted earnings per share decreased $0.02 from the prior linked quarter. Excluding the impact of Ocean Shore, net interest income decreased for the fourth quarter of 2016, as compared to the prior linked quarter, due to a reduction in average loans receivable. This reduction was partly offset by the overall favorable impact of the Ocean Shore acquisition for the month of December.

Net interest income for the quarter and year ended December 31, 2016 increased to $35.8 million and $120.3 million, respectively, as compared to $20.7 million and $76.8 million for the same prior year periods, reflecting an increase in interest-earning assets and a higher net interest margin. Average interest-earning assets increased $1.730 billion and $1.116 billion, respectively, for the quarter and year ended December 31, 2016, as compared to the same prior year periods. The averages for the quarter and year ended December 31, 2016, were favorably impacted by $1.357 billion and $900.7 million, respectively, as a result of the interest-earning assets acquired from Ocean Shore, Cape and Colonial American ("Acquisition Transactions"). Average loans receivable, net, increased $1.323 billion and $956.7 million, respectively, for the quarter and the year ended December 31, 2016 as compared to the same prior year periods. The increases attributable to the Acquisition Transactions were $1.280 billion and $843.6 million for the quarter and the year ended December 31, 2016, respectively. The net interest margin increased to 3.40% and 3.47%, respectively, for the quarter and year ended December 31, 2016, from 3.34% and 3.28%, respectively, for the quarter and year ended December 31, 2015. The yield on average interest-earning assets increased to 3.79% and 3.85%, respectively, for the quarter and year ended December 31, 2016, from 3.74% and 3.66%, respectively, for the same prior year periods. The yields on average interest-earning assets for the quarter and year ended December 31, 2016 benefited from the accretion of purchase accounting adjustments on the Acquisition Transactions of $1.4 million and $4.5 million, respectively;

the higher-yielding interest-earning assets acquired from Cape; and the higher interest rate environment in the fourth quarter of 2016. For the quarter and the year ended December 31, 2016, the cost of average interest-bearing liabilities decreased to 0.48% and 0.47%, from 0.49% and 0.48%, respectively, in the corresponding prior year periods. The total cost of deposits (including non-interest bearing deposits) was 0.26% and 0.25%, respectively, for the quarter and year ended December 31, 2016, as compared to 0.24% and 0.23%, respectively, for the corresponding prior year periods.

Net interest income for the quarter ended December 31, 2016 increased $1.8 million, as compared to the prior linked quarter, as average interest-earning assets increased $400.3 million, of which $317.8 million related to Ocean Shore. The net interest margin decreased to 3.40% for the quarter ended December 31, 2016, from 3.56% for the prior linked quarter. The yield on average interest-earning assets decreased to 3.79% for the quarter ended December 31, 2016, from 3.92% for the prior linked quarter due to increased average balances in lower yielding interest-earning deposits and short-term investments. The cost of average interest-bearing liabilities increased to 0.48% for the quarter ended December 31, 2016, as compared to 0.43% for the prior linked quarter, due to a full quarter of interest expense on the September 2016 issuance of $35.0 million in subordinated notes at an all-in cost of 5.45% with a stated maturity of September 30, 2026.

For the quarter and year ended December 31, 2016, the provision for loan losses was $510,000 and $2.6 million, respectively, as compared to $300,000 and $1.3 million, respectively, for the corresponding prior year periods. Net charge-offs were $944,000 and $4.2 million, respectively, for the quarter and the year ended December 31, 2016, as compared to $217,000 and $870,000, respectively, in the corresponding prior year periods. The increase in net charge-offs for the quarter and the year ended December 31, 2016, was primarily due to fourth quarter and full-year charge-offs of $535,000 and $2.1 million, respectively, on loans sold, and to a lesser extent, first quarter charge-offs of $886,000 on two non-performing commercial loans. Excluding charge-offs attributable to the loan sale, net charge-offs for

the quarter totaled $409,000. Non-performing loans totaled $13.6 million at December 31, 2016, as compared to $16.5 million at September 30, 2016, and $18.3 million at December 31, 2015.

For the quarter and the year ended December 31, 2016, other income increased to $6.3 million and $20.4 million, respectively, as compared to $4.1 million and $16.4 million, respectively, in the same prior year periods. The increases from the prior periods were primarily due to the impact of the Ocean Shore and Cape acquisitions which added $1.6 million and $3.9 million to total other income for the quarter and the year ended December 31, 2016, respectively, as compared to the same prior year periods. Excluding Ocean Shore and Cape, other income increased $529,000 and $133,000 for the quarter and year ended December 31, 2016, as compared to the same prior year periods. For the quarter and the year ended December 31, 2016, other income included losses of $49,000 and $342,000, respectively, attributable to the operations of a hotel, golf and banquet facility acquired as Other Real Estate Owned ("OREO") in the fourth quarter of 2015. The Bank is currently engaged in a sales process with qualified buyers for this property.

For the quarter ended December 31, 2016, other income, excluding the impact from Ocean Shore, increased $12,000, as compared to the prior linked quarter.

Operating expenses increased to $32.5 million and $102.9 million, respectively, for the quarter and the year ended December 31, 2016, as compared to $16.5 million and $60.8 million, respectively, in the same prior year periods. Operating expenses for the quarter and the year ended December 31, 2016 include $6.6 million and $16.5 million, respectively, in merger related expenses, as compared to merger related expenses of $614,000 and $1.9 million, respectively, in the same prior year periods. Excluding merger related expenses, the increases in operating expenses over the prior year were primarily due to the operations of Cape and Ocean Shore, which added $8.2 million and $20.5 million for the quarter and year-to-date, respectively; the investment in commercial lending which added expenses of $15,000 and $816,000 for the quarter and year-to-date, respectively; the addition of branches (excluding those acquired in the Acquisition Transactions) which added expenses of $176,000 and $1.2 million for the quarter and year-

to-date, respectively: the amortization of the core deposit intangible which added expenses of $291,000 and $602,000 for the quarter and year-to-date, respectively; and the FHLB advance prepayment fee of $136,000.

For the quarter ended December 31, 2016, operating expenses, excluding merger related expenses, increased $2.1 million, as compared to the prior linked quarter. The increase was primarily related to the additional expense from the operations of Ocean Shore of $1.3 million, as well as $363,000 in costs associated with the Bank's rebranding effort.

The provision for income taxes was $3.0 million and $12.2 million, respectively, for the quarter and year ended ended December 31, 2016, as compared to $2.8 million and $10.9 million, respectively, for the same prior year periods. The effective tax rate was 33.0% and 34.5%, respectively, for the quarter and year ended December 31, 2016, as compared to 34.7% and 34.9%, respectively, for the same prior year periods and 34.4% in the prior linked quarter. The variances in the effective tax rate were primarily due to the timing of non-deductible merger related expenses.

Financial Condition

Total assets increased by $2.574 billion to $5.167 billion at December 31, 2016, from $2.593 billion at December 31, 2015, primarily as a result of the acquisitions of Cape and Ocean Shore. Cash and due from banks and interest-bearing deposits increased by $257.4 million, to $301.4 million at December 31, 2016, from $43.9 million at December 31, 2015. The increase was primarily due to cash flows from a reduction in loans receivable (exclusive of acquired loans), deposit growth not utilized to reduce FHLB advances (exclusive of acquired deposits), and the issuance of subordinated notes. Loans receivable, net, increased by $1.833 billion, to $3.803 billion at December 31, 2016, from $1.971 billion at December 31, 2015, due to acquired loans of $1.931 billion. As part of the Acquisition Transactions, and the purchase of an existing retail branch in the Toms River market in the first quarter of 2016, at December 31, 2016, the Company had outstanding goodwill of $145.1 million and core deposit intangibles of $10.9 million.

Deposits increased by $2.271 billion, to $4.188 billion at December 31, 2016, from $1.917 billion at December 31, 2015, which include deposits of $2.140 billion acquired from Ocean Shore, Cape, and the purchase of an existing retail branch located in the Toms River market. Excluding those acquired, deposits increased $130.7 million, while core deposits (all deposits excluding time deposits) increased $169.7 million. The loan-to-deposit ratio at December 31, 2016 was 90.8%, as compared to 102.8% at December 31, 2015. The deposit growth funded a decrease in FHLB advances of $73.9 million to $250.5 million at December 31, 2016 from $324.4 million at December 31, 2015. The increase in other borrowings relates to the September 2016 issuance of $35.0 million in subordinated notes at an all-in cost of 5.45% with a stated maturity of September 30, 2026.

Stockholders' equity increased to $572.0 million at December 31, 2016, as compared to $238.4 million at December 31, 2015. The acquisitions of Cape and Ocean Shore added $165.9 million and $152.3 million, respectively, to stockholders' equity. At December 31, 2016, there were 154,804 shares available for repurchase under the Company's stock repurchase program adopted in July of 2014. In the fourth quarter, the Company repurchased 90,000 shares under this plan at an average cost of $20.86 per share. Tangible stockholders' equity per common share decreased to $12.95 at December 31, 2016, as compared to $13.67 at December 31, 2015, due to the addition of intangible assets in the Ocean Shore and Cape acquisitions.

Asset Quality

The Company's non-performing loans decreased to $13.6 million at December 31, 2016, as compared to $18.3 million at December 31, 2015, partly due to the bulk sale of non-performing and under-performing loans in the third and fourth quarters. Non-performing loans do not include $7.6 million of purchased credit-impaired ("PCI") loans acquired in the Acquisition Transactions. The Company's OREO totaled $9.8 million at December 31, 2016, as compared to $8.8 million at December 31, 2015. The amount includes $7.0 million relating to the hotel, golf and banquet facility located in New Jersey which the Company acquired in the fourth quarter of 2015. At December 31, 2016, the Company's allowance for

loan losses was 0.40% of total loans, a decrease from 0.84% at December 31, 2015. These ratios exclude existing fair value credit marks of $26.0 million at December 31, 2016 on the Ocean Shore, Cape and Colonial American loans and $2.2 million at December 31, 2015 on the Colonial American loans. These loans were acquired at fair value with no related allowance for loan losses. The allowance for loan losses as a percent of total non-performing loans was 111.92% at December 31, 2016 as compared to 91.51% at December 31, 2015.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with generally accepted accounting principles in the United States ("GAAP"). The Company's management believes that the supplemental non-GAAP information, which consists of reported net income excluding merger related expenses, loss on sale of investment securities available for sale and FHLB prepayment fee, which can vary from period to period, provides a better comparison of period to period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

Annual Meeting

The Company also announced today that its Annual Meeting of Stockholders will be held on Friday, June 2, 2017 at 10:00 a.m. Eastern time, at Navesink Country Club located at 50 Luffburrow Lane, Middletown, New Jersey. The record date for stockholders to vote at the Annual Meeting is April 11, 2017.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, January 27, 2017 at 11 a.m. Eastern time. The direct dial number for the call is (888) 338-7143. For those unable

to participate in the conference call, a replay will be available. To access the replay, dial (877) 344-7529, Replay Conference Number10098553 from one hour after the end of the call until April 27, 2017. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

* * *

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank, founded in 1902, is a $5.2 billion community bank with branches located throughout central and southern New Jersey. OceanFirst Bank delivers commercial and residential financing solutions, wealth management and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey.

OceanFirst Financial Corp.'s press releases are available by visiting us at www.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 Litigation 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, future natural disasters and increases to flood insurance premiums, 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, accounting principles and guidelines and the Bank's ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent securities filings 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)



	December 31, 2016			September 30, 2016			December 31, 2015
	(unaudited)			(unaudited)
Assets
Cash and due from banks	$	301,373		$	311,583		$	43,946
Securities available-for-sale, at estimated fair value	12,224			2,497			29,902
Securities held-to-maturity, net (estimated fair value of $596,413 at December 31, 2016, $478,727 at September 30, 2016, and $397,763 at December 31, 2015)	598,691			470,642			394,813
Federal Home Loan Bank of New York stock, at cost	19,313			18,289			19,978
Loans receivable, net	3,803,443			3,028,696			1,970,703
Loans held-for-sale	1,551			21,679			2,697
Interest and dividends receivable	11,989			9,396			5,860
Other real estate owned	9,803			9,107			8,827
Premises and equipment, net	71,385			51,243			28,419
Servicing asset	228			259			589
Bank Owned Life Insurance	132,172			106,433			57,549
Deferred tax asset	38,787			39,391			16,807
Other assets	10,105			11,543			10,900
Core deposit intangible	10,924			3,722			256
Goodwill	145,064			66,537			1,822
Total assets	$	5,167,052		$	4,151,017		$	2,593,068
Liabilities and Stockholders’ Equity
Deposits	$	4,187,750		$	3,324,681		$	1,916,678
Securities sold under agreements to repurchase with retail customers	69,935			69,078			75,872
Federal Home Loan Bank advances	250,498			251,146			324,385
Other borrowings	56,559			56,399			22,500
Advances by borrowers for taxes and insurance	14,030			8,287			7,121
Other liabilities	16,242			24,182			8,066
Total liabilities	4,595,014			3,733,773			2,354,622
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 32,136,892, 25,850,956, and 17,286,557 shares outstanding at December 31, 2016, September 30, 2016, and December 31, 2015, respectively	336			336			336
Additional paid-in capital	364,433			308,979			269,757
Retained earnings	238,192			236,472			229,140
Accumulated other comprehensive loss	(5,614		)	(5,611		)	(6,241		)
Less: Unallocated common stock held by Employee Stock Ownership Plan	(2,761		)	(2,832		)	(3,045		)
Treasury stock, 1,429,880, 7,715,816, and 16,280,215 shares at December 31, 2016, September 30, 2016, and December 31, 2015, respectively	(22,548		)	(120,100		)	(251,501		)
Common stock acquired by Deferred Compensation Plan	(313		)	(310		)	(314		)
Deferred Compensation Plan Liability	313			310			314
Total stockholders’ equity	572,038			417,244			238,446
Total liabilities and stockholders’ equity	$	5,167,052		$	4,151,017		$	2,593,068

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)



	For the Three Months Ended,									For the Years Ended
	December 31,			September 30,			December 31,			December 31,
	2016			2016			2015			2016			2015
	\|--------------------- (unaudited) ---------------------\|									(unaudited)
Interest income:
Loans	$	36,799		$	34,607		$	21,143		$	122,962		$	77,694
Mortgage-backed securities	1,874			1,700			1,449			6,697			6,051
Investment securities and other	1,231			1,000			557			3,766			2,118
Total interest income	39,904			37,307			23,149			133,425			85,863
Interest expense:
Deposits	2,392			2,083			1,217			7,517			4,301
Borrowed funds	1,758			1,289			1,244			5,646			4,733
Total interest expense	4,150			3,372			2,461			13,163			9,034
Net interest income	35,754			33,935			20,688			120,262			76,829
Provision for loan losses	510			888			300			2,623			1,275
Net interest income after provision for loan losses	35,244			33,047			20,388			117,639			75,554
Other income:
Bankcard services revenue	1,424			1,347			926			4,833			3,537
Wealth management revenue	545			608			530			2,324			2,187
Fees and services charges	3,273			2,916			2,082			10,508			8,124
Loan servicing income	73			26			82			250			268
Net gain on sale of loan servicing	—			—			—			—			111
Net gain on sales of loans available-for-sale	290			347			185			986			822
Net loss on sales of investment securities available-for-sale	—			—			—			(12		)	—
Net loss from other real estate operations	(74		)	(63		)	(38		)	(856		)	(149		)
Income from Bank Owned Life Insurance	710			659			343			2,230			1,501
Other	16			56			8			149			25
Total other income	6,257			5,896			4,118			20,412			16,426
Operating expenses:
Compensation and employee benefits	13,649			13,558			8,438			47,105			31,946
Occupancy	2,380			2,315			1,518			8,332			5,722
Equipment	1,499			1,452			1,162			5,104			3,725
Marketing	609			479			428			1,882			1,516
Federal deposit insurance	830			743			528			2,825			2,072
Data processing	2,291			2,140			1,349			7,577			4,731
Check card processing	662			623			427			2,210			1,815
Professional fees	969			681			541			2,848			1,865
Other operating expense	2,640			1,543			1,481			7,676			5,484
Amortization of core deposit intangible	304			181			13			623			21
Federal Home Loan Bank advance prepayment fee	—			—			—			136			—
Merger related expenses	6,632			1,311			614			16,534			1,878
Total operating expenses	32,465			25,026			16,499			102,852			60,775
Income before provision for income taxes	9,036			13,917			8,007			35,199			31,205
Provision for income taxes	2,984			4,789			2,777			12,153			10,883
Net income	$	6,052		$	9,128		$	5,230		$	23,046		$	20,322
Basic earnings per share	$	0.22		$	0.36		$	0.31		$	1.00		$	1.22
Diluted earnings per share	$	0.22		$	0.35		$	0.31		$	0.98		$	1.21
Average basic shares outstanding	27,461			25,435			16,867			23,093			16,600
Average diluted shares outstanding	28,128			25,889			17,126			23,526			16,811

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(dollars in thousands)



LOANS RECEIVABLE			At
			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015

Commercial:
Commercial and industrial			$	152,810		$	185,633		$	222,355		$	141,364		$	144,788
Commercial real estate - owner- occupied			534,365			493,157			523,662			308,666			307,509
Commercial real estate - investor			1,134,507			1,014,699			1,011,354			536,754			510,936
Total commercial			1,821,682			1,693,489			1,757,371			986,784			963,233
Consumer:
Residential mortgage			1,651,695			1,061,752			1,090,781			792,753			791,249
Residential construction			65,408			46,813			48,266			54,259			50,757
Home equity loans and lines			289,110			251,421			258,398			190,621			192,368
Other consumer			1,566			1,273			1,586			570			792
Total consumer			2,007,779			1,361,259			1,399,031			1,038,203			1,035,166
Total loans			3,829,461			3,054,748			3,156,402			2,024,987			1,998,399
Loans in process			(14,249		)	(13,842		)	(13,119		)	(15,033		)	(14,206		)
Deferred origination costs, net			3,414			3,407			3,441			3,253			3,232
Allowance for loan losses			(15,183		)	(15,617		)	(16,678		)	(16,214		)	(16,722		)
Loans receivable, net			$	3,803,443		$	3,028,696		$	3,130,046		$	1,996,993		$	1,970,703

Mortgage loans serviced for others			$	137,881		$	143,657		$	145,903		$	152,653		$	158,244
	At December 31, 2016 Average Yield
Loan pipeline ⁽¹⁾:
Commercial	4.82	%	$	99,060		$	64,976		$	48,897		$	57,571		$	53,785
Residential mortgage and construction	3.91		38,486			39,252			30,520			28,528			31,860
Home equity loans and lines	4.51		6,522			5,099			5,594			8,082			5,481
Total	4.56		$	144,068		$	109,327		$	85,011		$	94,181		$	91,126



	For the Three Months Ended,
	December 31,					September 30,			June 30,		March 31,		December 31,
	2016					2016			2016		2016		2015
	Average Yield
Loan originations:
Commercial	4.14	%	$	105,062	⁽⁴⁾	$	63,310		$	59,543	$	58,005	$	72,534
Residential mortgage and construction	3.69		62,087			41,170			40,295		34,361		43,616
Home equity loans and lines	4.49		11,790			11,007			10,067		10,915		10,431
Total	4.00		$	178,939		$	115,487		$	109,905	$	103,281	$	126,581
Loans sold			$	12,098	⁽³⁾	$	17,787	⁽²⁾	$	10,303	$	8,901	$	9,784


(1)	Loan pipeline includes pending loan applications and loans approved but not funded


(2)	Excludes the sale of under-performing loans of $12.8 million


(3)	Excludes the sale of under-performing loans of $21.0 million


(4)	Includes purchased loans totaling $24.6 million



DEPOSITS	At
	December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016		December 31, 2015
Type of Account
Non-interest-bearing	$	782,504	$	512,957	$	554,709	$	351,743	$	337,143
Interest-bearing checking	1,626,713		1,451,083		1,310,290		860,468		859,927
Money market deposit	458,911		400,054		366,942		163,885		153,196
Savings	672,519		489,173		489,132		327,845		310,989
Time deposits	647,103		471,414		485,189		267,420		255,423
	$	4,187,750	$	3,324,681	$	3,206,262	$	1,971,361	$	1,916,678

OceanFirst Financial Corp.

ASSET QUALITY

(dollars in thousands)



	December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016			December 31, 2015
ASSET QUALITY
Non-performing loans:
Commercial and industrial	$	441		$	1,152		$	964		$	909		$	123
Commercial real estate - owner-occupied	2,414			5,213			4,363			4,354			7,684
Commercial real estate - investor	521			1,675			1,675			940			3,112
Residential mortgage	8,126			7,017			7,102			8,788			5,779
Home equity loans and lines	2,064			1,450			1,226			1,202			1,574
Other consumer	—			—			—			—			2
Total non-performing loans	13,566			16,507			15,330			16,193			18,274
Other real estate owned	9,803			9,107			9,791			9,029			8,827
Total non-performing assets	$	23,369		$	25,614		$	25,121		$	25,222		$	27,101
Purchased credit-impaired ("PCI") loans	$	7,575		$	5,836		$	9,673		$	376		$	461
Delinquent loans 30 to 89 days	$	22,598		$	8,553		$	15,643		$	6,996		$	9,087
Troubled debt restructurings:
Non-performing (included in total non-performing loans above)	$	3,471		$	3,520		$	2,990		$	4,775		$	4,918
Performing	27,042			26,396			28,173			26,689			26,344
Total troubled debt restructurings	$	30,513		$	29,916		$	31,163		$	31,464		$	31,262
Allowance for loan losses	$	15,183		$	15,617		$	16,678		$	16,214		$	16,722
Allowance for loan losses as a percent of total loans receivable ⁽¹⁾	0.40		%	0.51		%	0.53		%	0.80		%	0.84		%
Allowance for loan losses as a percent of total non-performing loans	111.92			94.61			108.79			100.13			91.51
Non-performing loans as a percent of total loans receivable	0.35			0.54			0.48			0.80			0.91
Non-performing assets as a percent of total assets	0.45			0.62			0.62			0.97			1.05


(1)	The loans acquired from Ocean Shore, Cape, and Colonial American were recorded at fair value. The net credit mark on these loans, not reflected in the allowance for loan losses, was $25,973, $17,051, $27,281, $2,013, and $2,202 at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

NET CHARGE-OFFS



	For the three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015
Net Charge-offs:
Loan charge-offs	$	(979	)	$	(2,116	)	$	(223	)	$	(1,172	)	$	(236	)
Recoveries on loans	35			167			25			101			19
Net loan charge-offs	$	(944	)	$	(1,949	)	$	(198	)	$	(1,071	)	$	(217	)
Net loan charge-offs to average total loans (annualized)	0.11		%	0.25		%	0.03		%	0.21		%	0.04		%
Net charge-off detail - (loss) recovery:
Commercial	$	(510	)	$	(1,707	)	$	(84	)	$	(1,073	)	$	12
Residential mortgage and construction	(233		)	(161		)	(69		)	(24		)	(117		)
Home equity loans and lines	(194		)	(83		)	(45		)	28			(109		)
Other consumer	(7		)	2			—			(2		)	(3		)
Net loans charged-off	$	(944	)	$	(1,949	)	$	(198	)	$	(1,071	)	$	(217	)

Note: Included in net loan charge-offs for the three months ended December 31, 2016 and September 30, 2016 are $535 and $1,627 relating to under-performing loans sold or held-for-sale, respectively.

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME



	For the Three Months Ended
	December 31, 2016							September 30, 2016							December 31, 2015
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost		Average Balance			Interest		Average Yield/ Cost		Average Balance			Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short- term investments	$	359,804		$	484	0.54	%	$	168,045		$	139	0.33	%	$	41,227		$	16	0.15	%
Securities (1) and FHLB stock	545,302			2,621		1.91		533,809			2,561		1.91		456,486			1,990		1.73
Loans receivable, net (2)
Commercial	1,717,502			21,016		4.87		1,723,520			20,970		4.84		943,116			11,154		4.69
Residential	1,314,667			12,857		3.89		1,118,435			10,874		3.87		836,722			7,953		3.77
Home Equity	262,372			2,907		4.41		255,919			2,745		4.27		193,314			2,028		4.16
Other	1,149			19		6.58		1,163			18		6.16		544			8		5.83
Allowance for loan loss net of deferred loan fees	(12,987		)	—		—		(13,346		)	—		—		(13,597		)	—		—
Loans Receivable, net	3,282,703			36,799		4.46		3,085,691			34,607		4.46		1,960,099			21,143		4.28
Total interest-earning assets	4,187,809			39,904		3.79		3,787,545			37,307		3.92		2,457,812			23,149		3.74
Non-interest-earning assets	368,965							316,290							129,297
Total assets	$	4,556,774						$	4,103,835						$	2,587,109
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	1,538,706		723		0.19	%	$	1,425,350		583		0.16	%	$	909,962		278		0.12	%
Money market	424,613			312		0.29		386,490			295		0.30		152,416			76		0.20
Savings	549,032			74		0.05		488,749			49		0.04		309,037			27		0.03
Time deposits	527,817			1,283		0.97		477,496			1,156		0.96		256,378			836		1.29
Total	3,040,168			2,392		0.31		2,778,085			2,083		0.30		1,627,793			1,217		0.30
Securities sold under agreements to repurchase	72,063			24		0.13		68,540			24		0.14		78,892			29		0.15
FHLB Advances	250,829			1,120		1.78		264,213			1,067		1.61		252,812			1,041		1.63
Other borrowings	56,397			614		4.33		26,207			198		3.01		25,467			174		2.71
Total interest-bearing liabilities	3,419,457			4,150		0.48		3,137,045			3,372		0.43		1,984,964			2,461		0.49
Non-interest-bearing deposits	622,882							521,088							349,473
Non-interest-bearing Liabilities	42,773							31,536							16,174
Total liabilities	4,085,112							3,689,669							2,350,611
Stockholders’ equity	471,662							414,166							236,498
Total liabilities and equity	$	4,556,774						$	4,103,835						$	2,587,109
Net interest income				$	35,754						$	33,935						$	20,688
Net interest rate spread (3)						3.31	%						3.49	%						3.25	%
Net interest margin (4)						3.40	%						3.56	%						3.34	%
Total cost of deposits (including non- interest-bearing deposits)						0.26	%						0.25	%						0.24	%


(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.

(continued)



	For the Years Ended
	December 31, 2016							December 31, 2015
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost		Average Balance			Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	154,830		$	693	0.45	%	$	38,371		$	44	0.11	%
Securities (1) and FHLB stock	524,152			9,770		1.86		481,306			8,125		1.69
Loans receivable, net (2)
Commercial	1,472,421			70,768		4.81		840,531			38,186		4.54
Residential	1,085,991			41,996		3.87		804,404			31,423		3.91
Home Equity	236,769			10,139		4.28		194,383			8,054		4.14
Other	957			59		6.17		482			31		6.43
Allowance for loan loss net of deferred loan fees	(13,280		)	—		—		(13,639		)	—		—
Loans Receivable, net	2,782,858			122,962		4.42		1,826,161			77,694		4.25
Total interest-earning assets	3,461,840			133,425		3.85		2,345,838			85,863		3.66
Non-interest-earning assets	269,622							119,035
Total assets	$	3,731,462						$	2,464,873
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	1,266,135		2,114		0.17	%	$	875,325		952		0.11	%
Money market	316,977			858		0.27		129,775			187		0.14
Savings	447,484			191		0.04		306,151			102		0.03
Time deposits	422,026			4,354		1.03		229,786			3,060		1.33
Total	2,452,622			7,517		0.31		1,541,037			4,301		0.28
Securities sold under agreements to repurchase	75,227			102		0.14		73,029			103		0.14
FHLB Advances	266,981			4,471		1.67		253,864			3,849		1.52
Other borrowings	32,029			1,073		3.35		26,967			781		2.90
Total interest-bearing liabilities	2,826,859			13,163		0.47		1,894,897			9,034		0.48
Non-interest-bearing deposits	497,166							327,216
Non-interest-bearing Liabilities	28,454							14,851
Total liabilities	3,352,479							2,236,964
Stockholders’ equity	378,983							227,909
Total liabilities and equity	$	3,731,462						$	2,464,873
Net interest income				$	120,262						$	76,829
Net interest rate spread (3)						3.38	%						3.18	%
Net interest margin (4)						3.47	%						3.28	%
Total cost of deposits (including non-interest-bearing deposits)						0.25	%						0.23	%


(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.

OceanFirst Financial Corp.

SELECTED QUARTERLY FINANCIAL DATA

(in thousands, except per share amounts)



	December 31,		September 30,		June 30,		March 31,		December 31,
	2016		2016		2016		2016		2015

Selected Financial Condition Data:
Total assets	$	5,167,052	$	4,151,017	$	4,047,493	$	2,588,447	$	2,593,068
Securities available-for-sale, at estimated fair value	12,224		2,497		12,509		30,085		29,902
Securities held-to-maturity, net	598,691		470,642		513,721		375,616		394,813
Federal Home Loan Bank of New York stock	19,313		18,289		21,128		16,645		19,978
Loans receivable, net	3,803,443		3,028,696		3,130,046		1,996,993		1,970,703
Loans held-for-sale	1,551		21,679		5,310		3,386		2,697
Deposits	4,187,750		3,324,681		3,206,262		1,971,360		1,916,678
Federal Home Loan Bank advances	250,498		251,146		312,603		251,917		324,385
Securities sold under agreements to repurchase and other borrowings	126,494		125,477		90,173		106,413		98,372
Stockholders' equity	572,038		417,244		409,258		241,076		238,446



	For the Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2016		2016		2016		2016		2015
Selected Operating Data:
Interest income	$	39,904	$	37,307	$	33,141	$	23,073	$	23,149
Interest expense	4,150		3,372		3,127		2,514		2,461
Net interest income	35,754		33,935		30,014		20,559		20,688
Provision for loan losses	510		888		662		563		300
Net interest income after provision for loan losses	35,244		33,047		29,352		19,996		20,388
Other income	6,257		5,896		4,883		3,376		4,118
Operating expenses	25,833		23,715		21,457		15,314		15,885
Merger related expenses	6,632		1,311		7,189		1,402		614
Income before provision for income taxes	9,036		13,917		5,589		6,656		8,007
Provision for income taxes	2,984		4,789		1,928		2,451		2,777
Net income	$	6,052	$	9,128	$	3,661	$	4,205	$	5,230
Diluted earnings per share	$	0.22	$	0.35	$	0.16	$	0.25	$	0.31
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	1,385	$	1,637	$	1,267	$	164	$	177

(continued)



	At or For the Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2016		2016		2016		2016		2015
Selected Financial Ratios and Other Data(1):

Performance Ratios (Annualized):
Return on average assets (2)	0.53	%	0.88	%	0.40	%	0.65	%	0.80	%
Return on average stockholders' equity (2)	5.10		8.77		3.79		7.05		8.77
Return on average tangible stockholders' equity (2) (3)	6.48		10.58		4.32		7.59		8.86
Stockholders' equity to total assets	11.07		10.05		10.11		9.31		9.19
Tangible stockholders' equity to tangible assets (3)	8.30		8.50		8.51		9.23		9.12
Net interest rate spread	3.31		3.49		3.47		3.25		3.25
Net interest margin	3.40		3.56		3.57		3.34		3.35
Operating expenses to average assets (2)	2.83		2.43		3.16		2.58		2.53
Efficiency ratio (2) (4)	77.28		62.83		82.09		69.84		66.51



	At or For the Years Ended December 31,
	2016		2015
Performance Ratios:
Return on average assets (2)	0.62	%	0.82	%
Return on average stockholders' equity (2)	6.08		8.92
Return on average tangible stockholders' equity (2) (3)	7.13		8.96
Net interest rate spread	3.38		3.18
Net interest margin	3.47		3.28
Operating expenses to average assets (2)	2.76		2.47
Efficiency ratio (2) (4)	73.11		65.17

(continued)



	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015
Wealth Management:
Assets under administration	$	218,336		$	221,612		$	221,277		$	203,723		$	229,039
Per Share Data:
Cash dividends per common share	$	0.15		$	0.13		$	0.13		$	0.13		$	0.13
Stockholders' equity per common share at end of period	17.80			16.14			15.89			13.89			13.79
Tangible stockholders' equity per common share at end of period (3)	12.95			13.42			13.14			13.75			13.67
Number of full-service customer facilities:	61			50			50			28			27
Quarterly Average Balances
Total securities	$	545,302		$	533,809		$	571,463		$	445,696		$	456,486
Loans, receivable, net	3,282,703			3,085,691			2,772,518			1,981,101			1,960,099
Total interest-earning assets	4,187,809			3,787,545			3,384,548			2,475,298			2,457,812
Total assets	4,556,774			4,103,835			3,647,102			2,605,017			2,587,109
Interest-bearing transaction deposits	2,512,351			2,300,589			1,899,266			1,372,357			1,371,415
Time deposits	527,817			477,496			417,301			263,722			256,378
Total borrowed funds	379,289			358,960			386,578			372,240			357,171
Total interest-bearing liabilities	3,419,457			3,137,045			2,703,145			2,008,319			1,984,964
Non-interest bearing deposits	622,882			521,088			529,230			343,371			349,473
Stockholder’s equity	471,662			414,166			388,694			239,999			236,498
Total deposits	3,663,050			3,299,173			2,845,797			1,979,450			1,977,266
Quarterly Yields
Total securities	1.91		%	1.91		%	1.82		%	1.81		%	1.73		%
Loans, receivable, net	4.46			4.46			4.43			4.27			4.28
Total interest-earning assets	3.79			3.92			3.94			3.75			3.74
Interest-bearing transaction deposits	0.18			0.16			0.15			0.12			0.11
Time deposits	0.97			0.96			1.01			1.33			1.29
Borrowed funds	1.84			1.43			1.41			1.34			1.38
Total interest-bearing liabilities	0.48			0.43			0.47			0.50			0.49
Net interest spread	3.31			3.49			3.47			3.25			3.25
Net interest margin	3.40			3.56			3.57			3.34			3.34
Total deposits	0.26			0.25			0.25			0.26			0.24


(1)	With the exception of end of quarter ratios, all ratios are based on average daily balances.


(2)	Performance ratios for each period include merger related expenses. Refer to Other Items - Non-GAAP Reconciliation for impact of merger related expenses.

(3) Tangible stockholders' equity and tangible assets exclude intangible assets relating to goodwill and core deposit intangible.


(4)	Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.

OceanFirst Financial Corp.

OTHER ITEMS

(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION



	For the three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015
Core earnings:
Net income	$	6,052		$	9,128		$	3,661		$	4,205		$	5,230
Add: Merger related expenses	6,632			1,311			7,189			1,402			614
Loss on sale of investment securities available for sale	—			—			12			—			—
Federal Home Loan Bank prepayment fee	—			—			136			—			—
Less: Income tax benefit on items	(2,108		)	(172		)	(2,311		)	(171		)	(173		)
Core earnings	$	10,576		$	10,267		$	8,687		$	5,436		$	5,671
Core diluted earnings per share	$	0.38		$	0.40		$	0.38		$	0.32		$	0.33

Core ratios:
Return on average assets	0.92		%	1.00		%	0.96		%	0.84		%	0.87		%
Return on average tangible stockholder's equity	11.33			11.90			10.26			9.19			9.60

COMPUTATION OF TOTAL TANGIBLE EQUITY TO TOTAL TANGIBLE ASSETS



	December 31,			September 30,			June 30,			March 31,			December 31,
	2016			2016			2016			2016			2015
Total stockholders' equity	$	572,038		$	417,244		$	409,258		$	241,076		$	238,446
Less:
Goodwill	145,064			66,537			67,102			2,081			1,822
Core deposit intangible	10,924			3,722			3,903			310			256
Tangible stockholders’ equity	$	416,050		$	346,985		$	338,253		$	238,685		$	236,368

Total assets	$	5,167,052		$	4,151,017		$	4,047,493		$	2,588,447		$	2,593,068
Less:
Goodwill	145,064			66,537			67,102			2,081			1,822
Core deposit intangible	10,924			3,722			3,903			310			256
Tangible assets	$	5,011,064		$	4,080,758		$	3,976,488		$	2,586,056		$	2,590,990
Tangible stockholders' equity to tangible assets	8.30		%	8.50		%	8.51		%	9.23		%	9.12		%

ACQUISITION DATE - FAIR VALUE BALANCE SHEET

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Cape, net of the total consideration paid (in thousands):



	At May 2, 2016
(in thousands)	Cape Book Value			Purchase Accounting Adjustments			Estimated Fair Value
Total Purchase Price:							$	196,403
Assets acquired:
Cash and cash equivalents	$	30,025		$	—		$	30,025
Securities and Federal Home Loan Bank Stock	218,577			361			218,938
Loans:	1,169,568						1,156,807
Specific credit fair value on credit impaired loans	—			(5,859		)	—
General credit fair value	—			(20,545		)	—
Interest rate fair value	—			1,888			—
Reverse allowance for loan losses	—			9,931			—
Reverse net deferred fees, premiums and discounts	—			1,824			—
Premises and equipment	27,972			(1,973		)	25,999
Other real estate owned	2,343			(408		)	1,935
Deferred tax asset	9,407			10,993			20,400
Other assets	61,793			—			61,793
Core deposit intangible	831			2,887			3,718
Total assets acquired	1,520,516			(901		)	1,519,615
Liabilities assumed:
Deposits	(1,247,688		)	(679		)	(1,248,367		)
Borrowings	(123,587		)	(879		)	(124,466		)
Other liabilities	(7,611		)	(5,398		)	(13,009		)
Total liabilities assumed	(1,378,886		)	(6,956		)	(1,385,842		)
Net assets acquired	$	141,630		$	(7,857	)	133,773
Goodwill recorded in the merger							$	62,630

The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required.

ACQUISITION DATE - FAIR VALUE BALANCE SHEET

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Ocean Shore, net of the total consideration paid (in thousands):



	At November 30, 2016
(in thousands)	Ocean Shore Book Value			Purchase Accounting Adjustments			Estimated Fair Value
Total Purchase Price:							$	180,732
Assets acquired:
Cash and cash equivalents	$	60,871		$	—		$	60,871
Securities and Federal Home Loan Bank Stock	94,109			24			94,133
Loans:	790,396						774,046
Specific credit fair value on credit impaired loans	—			(2,062		)	—
General credit fair value	—			(8,127		)	—
Interest rate fair value	—			(5,779		)	—
Reverse allowance for loan losses	—			3,265			—
Reverse net deferred fees, premiums and discounts	—			(3,647		)	—
Premises and equipment	11,696			3,372			15,068
Other real estate owned	1,090			—			1,090
Deferred tax asset	5,587			2,210			7,797
Other assets	35,369			—			35,369
Core deposit intangible	348			7,158			7,506
Total assets acquired	999,466			(3,586		)	995,880
Liabilities assumed:
Deposits	(874,301		)	(772		)	(875,073		)
Borrowings	(3,694		)	—			(3,694		)
Other liabilities	(17,629		)	891			(16,738		)
Total liabilities assumed	(895,624		)	119			(895,505		)
Net assets acquired	$	103,842		$	(3,467	)	100,375
Goodwill recorded in the merger							$	80,357

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OCEANFIRST FINANCIAL CORP Reports