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EX-99.2 - EX-99.2 - OCEANFIRST FINANCIAL CORPd761991dex992.htm
8-K - FORM 8-K - OCEANFIRST FINANCIAL CORPd761991d8k.htm

Exhibit 99.1

 

LOGO

 

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 STRONGER QUARTERLY EARNINGS

AND LOAN GROWTH

TOMS RIVER, NEW JERSEY, JULY 24, 2014…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank (the “Bank”), today announced that diluted earnings per share increased to $0.30 for the quarter ended June 30, 2014, as compared to $0.29 for the corresponding prior year quarter. For the six months ended June 30, 2014, diluted earnings per share increased to $0.58, as compared to $0.55 for the corresponding prior year period.

Highlights for the quarter included:

 

    Higher earnings were driven by loan portfolio growth of $60.9 million.

 

    Commercial loans outstanding increased $35.3 million, the fourth consecutive quarter of double digit growth.

 

    Non-performing loans decreased $4.6 million and net charge-offs fell by $253,000, 48% from the linked quarter.

 

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The Company also announced completion of its 2012 share repurchase program and the authorization of the Board to repurchase 5% of the Company’s outstanding common stock, up to an additional 867,923 shares (the “Repurchase Program”).

Chairman and Chief Executive Officer, John R. Garbarino stated, “The fourth consecutive quarter of double digit commercial loan growth has reaffirmed our strategic decision to add resources in this area, and with the robust loan pipeline we anticipate continued strong loan growth. Additionally, the renewal of our common stock Repurchase Program underscores our commitment to efficiently manage capital for our shareholders in the near term, as our plans for longer term growth continue to develop.”

The Board of Directors also declared the Company’s seventieth consecutive quarterly cash dividend on common stock. The dividend for the quarter ended June 30, 2014 of $0.12 per share will be paid on August 15, 2014 to shareholders of record on August 4, 2014.

Results of Operations

Net income for the three months ended June 30, 2014 increased to $5.1 million, or $0.30 per diluted share, as compared to net income of $5.0 million, or $0.29 per diluted share for the corresponding prior year period. Net income for the six months ended June 30, 2014 increased to $9.8 million, or $0.58 per diluted share, as compared to net income of $9.4 million, or $0.55 per diluted share for the corresponding prior year period. The increases were primarily due to higher net interest income and a reduction in the provision for loan losses, partly offset by higher operating expenses. Additionally, earnings per share benefited from the reduction in average shares outstanding.

 

2


Net interest income for the three and six months ended June 30, 2014 increased to $18.2 million and $36.2 million, respectively, as compared to $17.5 million and $34.7 million, respectively, for the same prior year periods, reflecting an increase in the net interest margin partly offset by lower interest-earning assets. The net interest margin increased to 3.35% and 3.36%, respectively, for the three and six months ended June 30, 2014 from 3.21% and 3.19% for the same prior year periods. The yield on average interest-earning assets decreased to 3.67% for both the three and six months ended June 30, 2014, as compared to 3.69% for both prior year periods. Despite the two basis point decline, the asset yield benefited from a shift in the mix of interest-earning assets as average loans receivable, net increased $87.8 million and $60.6 million, respectively, for the three and six months ended June 30, 2014, while average interest-earning securities decreased $96.4 million and $49.6 million, respectively, as compared to the same prior year periods. The cost of average interest-bearing liabilities decreased to 0.39% and 0.38%, respectively, for the three and six months ended June 30, 2014, as compared to 0.56% and 0.59%, respectively, for the same prior year periods. The decrease was partly due to the prepayment of $159.0 million of Federal Home Loan Bank (“FHLB”) advances with a weighted average cost of 2.31% in the fourth quarter of 2013. Average interest-earning assets decreased $18.0 million and $22.2 million, respectively, for the three and six months ended June 30, 2014, as compared to the same prior year periods, as excess liquidity was allowed to run-off.

For the three and six months ended June 30, 2014, the provision for loan losses was $275,000 and $805,000, respectively, as compared to $800,000 and $1.9 million, respectively, for the corresponding prior year periods. The decreases for the three and six months ended June 30, 2014 were primarily due to reductions in net charge-offs of $201,000 and $791,000, respectively, as compared to the same prior year periods. Non-performing loans decreased $4.7 million at June 30, 2014, as compared to December 31, 2013, and by $5.2 million, as compared to June 30, 2013.

 

3


For the three and six months ended June 30, 2014, other income increased to $4.8 million and $8.7 million, respectively, as compared to $4.6 million and $7.9 million, respectively, in the same prior year periods. For the three and six months ended June 30, 2014, wealth management revenue increased $80,000 and $193,000, respectively, as compared to the same prior year periods, partly due to an increase in assets under administration to $229.3 million at June 30, 2014 from $175.8 million at June 30, 2013. For the three and six months ended June 30, 2014, fees and service charges increased $467,000 and $578,000, respectively, as compared to the same prior year periods primarily due to higher deposit fees from a revised fee and product structure. For the three and six months ended June 30, 2014, the net gain on the sale of loans amounted to $219,000 and $351,000, respectively, as compared to $735,000 and $561,000, respectively, in the same prior year periods. The gain on the sale of loans for the six months ended June 30, 2013 was adversely impacted by a provision of $975,000 added to the reserve for repurchased loans and loss sharing obligations, as compared to no provision in the current period. The prior year provision was related to loans sold to the Federal Home Loan Bank as part of its Mortgage Partnership Finance program. Compared to prior periods, the gain on sale of loans was adversely impacted by decreases in the gain-on-sale margin and reductions in loans sold to $10.9 million and $21.2 million, respectively, for the three and six months ended June 30, 2014, as compared to $32.3 million and $69.1 million, respectively, for the corresponding prior year periods, as increasing longer-term interest rates reduced one-to-four family loan refinance activity. For both the three and six months ended June 30, 2014, the Company recognized a gain of $348,000 on the sale of equity securities, as compared to a gain of $42,000 in the corresponding prior year periods.

 

4


Operating expenses amounted to $14.8 million and $29.0 million, respectively, for the three and six months ended June 30, 2014, as compared to $13.6 million and $26.2 million, respectively, in the same prior year periods. Compensation and employee benefits expense increased $1.1 million and $2.2 million, respectively, for the three and six months ended June 30, 2014, as compared to the same prior year periods, primarily due to personnel additions in revenue producing areas. Additionally, compensation and employee benefits expense for the three and six months ended June 30, 2014 includes $196,000 in non-recurring severance related expenses due to the Company’s strategic decision to improve efficiency in the residential mortgage loan area. The related personnel reduction is expected to lower compensation and benefits expense by $650,000 annually. Marketing expenses increased $163,000 and $445,000, respectively, as compared to the same prior year periods, primarily due to a promotional campaign to attract retail checking accounts and incent bankcard usage. The promotion resulted in the acquisition of approximately 1,400 new checking relationships for the year-to-date. These increases were partly offset by reductions in professional fees of $180,000 and $416,000, respectively, for the three and six months ended June 30, 2014, as compared to the corresponding prior year periods.

The provision for income taxes was $2.8 million and $5.3 million, respectively, for the three and six months ended June 30, 2014, as compared to $2.8 million and $5.2 million, respectively, for the same prior year periods. The effective tax rate was 35.1% and 35.2%, respectively, for the three and six months ended June 30, 2014, as compared to 35.7% and 35.4%, respectively, in the same prior year periods.

 

5


Financial Condition

Total assets increased by $79.4 million to $2,329.1 million at June 30, 2014, from $2,249.7 million at December 31, 2013. Loans receivable, net, increased by $90.4 million, to $1,631.8 million at June 30, 2014 from $1,541.5 million at December 31, 2013, primarily due to growth in commercial loans of $62.8 million and in residential construction loans, net of loans in process, which increased $11.6 million. Additionally, on June 30, 2014 the Company purchased a pool of performing, locally originated, one-to-four family, non-conforming mortgage loans for $20.6 million.

Deposits decreased by $41.3 million, to $1,705.5 million at June 30, 2014, from $1,746.8 million at December 31, 2013, despite strong growth in retail and business checking accounts. All of the decrease was related to a reduction in government deposits. Non-interest-bearing deposit accounts increased $63.6 million during the first half of 2014 due to a revised fee and product structure. To fund loan growth, FHLB advances increased $130.0 million, to $305.0 million at June 30, 2014, from $175.0 million at December 31, 2013. Stockholders’ equity increased to $215.8 million at June 30, 2014, as compared to $214.4 million at December 31, 2013. Net income for the period was partly offset by the repurchase of 301,766 shares of common stock for $5.0 million (average cost per share of $16.64) and the cash dividend on common stock. At June 30, 2014, there were no shares available for repurchase under the stock repurchase program adopted in the fourth quarter of 2012, although 867,923 shares are available for repurchase under the Repurchase Program announced today. Tangible stockholders’ equity per common share was $12.59 at June 30, 2014, as compared to $12.33 at December 31, 2013.

 

6


Asset Quality

The Company’s non-performing loans totaled $40.7 million at June 30, 2014, a $4.7 million decrease from December 31, 2013. Net loan charge-offs decreased to $799,000 for the six months ended June 30, 2014, as compared to $1.6 million for the corresponding prior year period.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, July 25, 2014 at 11:00 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 Number 10048830 from one hour after the end of the call until October 31, 2014. 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 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 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 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,

 

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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 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, 2013 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.

 

8


OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands, except per share amounts)

 

     June 30,
2014
    March 31,
2014
    December 31,
2013
 
     (unaudited)     (unaudited)        

ASSETS

      

Cash and due from banks

   $ 43,817      $ 36,746      $ 33,958   

Securities available-for-sale, at estimated fair value

     32,303        39,261        43,836   

Securities held-to-maturity, net (estimated fair value of $485,124 at June 30, 2014, $498,383 at March 31, 2014, and $495,082 at December 31, 2013, respectively)

     478,389        496,111        495,599   

Federal Home Loan Bank of New York stock, at cost

     20,246        17,011        14,518   

Loans receivable, net

     1,631,819        1,570,969        1,541,460   

Mortgage loans held for sale

     1,295        1,153        785   

Interest and dividends receivable

     5,317        5,361        5,380   

Other real estate owned

     4,968        4,457        4,345   

Premises and equipment, net

     24,430        23,963        23,684   

Servicing asset

     3,772        3,965        4,178   

Bank Owned Life Insurance

     55,286        54,909        54,571   

Deferred tax asset

     15,417        15,191        15,239   

Other assets

     12,082        12,614        12,158   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 2,329,141      $ 2,281,711      $ 2,249,711   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Deposits

   $ 1,705,510      $ 1,720,131      $ 1,746,763   

Securities sold under agreements to repurchase with retail customers

     62,341        66,226        68,304   

Federal Home Loan Bank advances

     305,000        232,300        175,000   

Other borrowings

     27,500        27,500        27,500   

Due to brokers

     —          1,522        —     

Advances by borrowers for taxes and insurance

     6,896        6,892        6,471   

Other liabilities

     6,053        10,950        11,323   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     2,113,300        2,065,521        2,035,361   
  

 

 

   

 

 

   

 

 

 

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 17,144,693, 17,358,459 and 17,387,049 shares outstanding at June 30, 2014, March 31, 2014 and December 31, 2013, respectively

     336        336        336   

Additional paid-in capital

     264,592        264,289        263,319   

Retained earnings

     211,819        208,732        206,201   

Accumulated other comprehensive loss

     (6,902     (6,575     (6,619

Less: Unallocated common stock held by Employee Stock Ownership Plan

     (3,458     (3,544     (3,616

Treasury stock, 16,422,079, 16,208,313 and 16,179,723 shares at June 30, 2014, March 31, 2014 and December 31, 2013, respectively

     (250,546     (247,048     (245,271

Common stock acquired by Deferred Compensation Plan

     (315     (324     (665

Deferred Compensation Plan Liability

     315        324        665   
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     215,841        216,190        214,350   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,329,141      $ 2,281,711      $ 2,249,711   
  

 

 

   

 

 

   

 

 

 

 

9


OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

 

     For the Three Months Ended,      For the Six Months Ended,  
     June 30,     March 31,     June 30,      June 30,     June 30,  
     2014     2014     2013      2014     2013  
     (unaudited)      (unaudited)  

Interest income:

           

Loans

   $ 17,530      $ 17,246      $ 17,428       $ 34,776      $ 35,091   

Mortgage-backed securities

     1,731        1,763        2,026         3,494        3,675   

Investment securities and other

     637        736        707         1,373        1,447   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total interest income

     19,898        19,745        20,161         39,643        40,213   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Interest expense:

           

Deposits

     986        1,096        1,175         2,082        2,501   

Borrowed funds

     753        584        1,442         1,337        2,979   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total interest expense

     1,739        1,680        2,617         3,419        5,480   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income

     18,159        18,065        17,544         36,224        34,733   

Provision for loan losses

     275        530        800         805        1,900   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income after provision for loan losses

     17,884        17,535        16,744         35,419        32,833   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Other income:

           

Bankcard services revenue

     897        791        921         1,689        1,731   

Wealth management revenue

     608        540        528         1,148        955   

Fees and service charges

     2,278        1,857        1,811         4,134        3,556   

Loan servicing income

     226        228        172         454        328   

Net gain on sales of loans available for sale

     219        132        735         351        561   

Net gain on sales of investment securities available for sale

     348        —          42         348        42   

Net (loss) gain from other real estate operations

     (107     (32     74         (139     77   

Income from Bank Owned Life Insurance

     377        338        332         715        647   

Other

     1        1        2         2        18   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total other income

     4,847        3,855        4,617         8,702        7,915   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Operating expenses:

           

Compensation and employee benefits

     8,131        7,685        7,039         15,816        13,617   

Occupancy

     1,364        1,464        1,376         2,828        2,739   

Equipment

     768        756        690         1,524        1,328   

Marketing

     610        532        447         1,142        697   

Federal deposit insurance

     538        546        536         1,083        1,060   

Data processing

     987        1,070        962         2,057        1,935   

Check card processing

     494        446        423         940        834   

Professional fees

     523        375        703         898        1,314   

Other operating expense

     1,432        1,246        1,424         2,679        2,630   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     14,847        14,120        13,600         28,967        26,154   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Income before provision for income taxes

     7,884        7,270        7,761         15,154        14,594   

Provision for income taxes

     2,767        2,563        2,774         5,330        5,170   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Net income

   $ 5,117      $ 4,707      $ 4,987       $ 9,824      $ 9,424   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Basic earnings per share

   $ 0.31      $ 0.28      $ 0.29       $ 0.58      $ 0.55   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Diluted earnings per share

   $ 0.30      $ 0.28      $ 0.29       $ 0.58      $ 0.55   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Average basic shares outstanding

     16,740        16,884        17,105         16,812        17,194   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Average diluted shares outstanding

     16,822        17,050        17,144         16,946        17,233   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

10


OceanFirst Financial Corp.

SELECTED CONSOLIDATED FINANCIAL DATA

(in thousands, except per share amounts)

 

     At June 30,
2014
    At March 31,
2014
    At December 31,
2013
 

STOCKHOLDERS’ EQUITY

      

Stockholders’ equity to total assets

     9.27     9.47     9.53

Common shares outstanding (in thousands)

     17,145        17,358        17,387   

Stockholders’ equity per common share

   $ 12.59      $ 12.45      $ 12.33   

Tangible stockholders’ equity per common share

     12.59        12.45        12.33   

ASSET QUALITY

      

Non-performing loans:

      

Real estate – one-to-four family

   $ 25,313      $ 27,486      $ 28,213   

Commercial real estate

     12,094        13,675        12,304   

Consumer

     3,128        3,731        4,328   

Commercial and industrial

     164        429        515   
  

 

 

   

 

 

   

 

 

 

Total non-performing loans

     40,699        45,321        45,360   

Other real estate owned

     4,968        4,457        4,345   
  

 

 

   

 

 

   

 

 

 

Total non-performing assets

   $ 45,667      $ 49,778      $ 49,705   
  

 

 

   

 

 

   

 

 

 

Delinquent loans 30 to 89 days

   $ 8,923      $ 9,137      $ 9,147   
  

 

 

   

 

 

   

 

 

 

Troubled debt restructurings:

      

Non-performing (included in total non-performing loans above)

   $ 7,047      $ 10,217      $ 9,663   

Performing

     23,000        21,435        21,456   
  

 

 

   

 

 

   

 

 

 

Total troubled debt restructurings

   $ 30,047      $ 31,652      $ 31,119   
  

 

 

   

 

 

   

 

 

 

Allowance for loan losses

   $ 20,936      $ 20,934      $ 20,930   
  

 

 

   

 

 

   

 

 

 

Allowance for loan losses as a percent of total loans receivable

     1.26     1.31     1.33

Allowance for loan losses as a percent of total non-performing loans

     51.44        46.19        46.14   

Non-performing loans as a percent of total loans receivable

     2.44        2.83        2.88   

Non-performing assets as a percent of total assets

     1.96        2.18        2.21   

WEALTH MANAGEMENT

      

Assets under administration

   $ 229,289      $ 216,508      $ 216,144   

 

     For the Three Months Ended,     For the Six Months Ended,  
     June 30,
2014
    March 31,
2014
    June 30,
2013
    June 30,
2014
    June 30,
2013
 

PERFORMANCE RATIOS (ANNUALIZED)

          

Return on average assets

     0.90     0.83     0.87     0.86     0.82

Return on average stockholders’ equity

     9.45        8.72        9.06        9.09        8.56   

Interest rate spread

     3.28        3.31        3.13        3.29        3.10   

Interest rate margin

     3.35        3.36        3.21        3.36        3.19   

Operating expenses to average assets

     2.60        2.49        2.36        2.55        2.27   

Efficiency ratio

     64.54        64.42        61.37        64.48        61.33   

 

11


OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(in thousands)

 

           June 30, 2014     March 31, 2014     December 31, 2013  

LOANS RECEIVABLE

        

Real estate:

        

One-to-four family

     $ 766,761      $ 748,647      $ 751,370   

Commercial real estate, multi-family and land

       577,061        550,808        528,945   

Residential construction

       46,092        37,852        30,821   

Consumer

       201,839        199,926        200,683   

Commercial and industrial

       75,215        66,196        60,545   
    

 

 

   

 

 

   

 

 

 

Total loans

       1,666,968        1,603,429        1,572,364   

Loans in process

       (16,374     (13,991     (12,715

Deferred origination costs, net

       3,456        3,618        3,526   

Allowance for loan losses

       (20,936     (20,934     (20,930
    

 

 

   

 

 

   

 

 

 

Total loans, net

       1,633,114        1,572,122        1,542,245   

Less: mortgage loans held for sale

       1,295        1,153        785   
    

 

 

   

 

 

   

 

 

 

Loans receivable, net

     $ 1,631,819      $ 1,570,969      $ 1,541,460   
    

 

 

   

 

 

   

 

 

 

Mortgage loans serviced for others

     $ 786,095      $ 794,530      $ 806,810   
     Average Yield                    

Loan pipeline:

        

Commercial

     4.26   $ 69,535        46,813      $ 58,992   

Construction/permanent

     3.91     6,369        9,753        9,955   

One-to-four family

     4.27     19,792        19,729        18,827   

Consumer

     4.39     5,045        7,118        5,496   
    

 

 

   

 

 

   

 

 

 
     $ 100,741      $ 83,413      $ 93,270   
    

 

 

   

 

 

   

 

 

 

 

     For the Three Months Ended,      For the Six Months Ended,  
     June 30,
2014
     March 31,
2014
     June 30,
2013
     June 30,
2014
     June 30,
2013
 

Loan originations:

              

Commercial

   $ 46,909       $ 52,482       $ 29,256       $ 99,391       $ 47,694   

Construction/permanent

     13,163         10,416         5,609         23,579         9,199   

One-to-four family

     32,252         27,738         58,442         59,990         112,127   

Consumer

     15,893         13,379         15,582         29,272         26,712   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 108,217       $ 104,015       $ 108,889       $ 212,232       $ 195,732   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Loans sold

   $ 10,936       $ 10,270       $ 32,343       $ 21,206       $ 69,134   

Net charge-offs

     273         526         474         799         1,590   

 

     June 30, 2014      March 31, 2014      December 31, 2013  

DEPOSITS

        

Type of Account

        

Non-interest-bearing

   $ 271,208       $ 218,124       $ 207,608   

Interest-bearing checking

     817,085         865,023         913,753   

Money market deposit

     107,365         123,701         116,947   

Savings

     295,133         297,739         290,512   

Time deposits

     214,719         215,544         217,943   
  

 

 

    

 

 

    

 

 

 
   $ 1,705,510       $ 1,720,131       $ 1,746,763   
  

 

 

    

 

 

    

 

 

 

 

12


OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

 

    FOR THE THREE MONTHS ENDED,  
    JUNE 30, 2014     MARCH 31, 2014     JUNE 30, 2013  
    AVERAGE
BALANCE
    INTEREST     AVERAGE
YIELD/
COST
    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

  $ 26,563      $ 4        0.06   $ 29,332      $ 6        0.08   $ 36,601      $ 19        0.21

Securities (1) and FHLB stock

    552,851        2,364        1.71        562,350        2,493        1.77        648,697        2,714        1.67   

Loans receivable, net (2)

    1,588,815        17,530        4.41        1,557,281        17,246        4.43        1,500,980        17,428        4.64   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest-earning assets

    2,168,229        19,898        3.67        2,148,963        19,745        3.68        2,186,278        20,161        3.69   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 

Non-interest-earning assets

    118,551            115,855            119,416       
 

 

 

       

 

 

       

 

 

     

Total assets

  $ 2,286,780          $ 2,264,818          $ 2,305,694       
 

 

 

       

 

 

       

 

 

     

Liabilities and Stockholders’ Equity

                 

Interest-bearing liabilities:

                 

Transaction deposits

  $ 1,257,291        247        0.08      $ 1,322,358        363        0.11      $ 1,318,230        438        0.13   

Time deposits

    215,148        739        1.37        215,710        733        1.36        215,917        737        1.37   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,472,439        986        0.27        1,538,068        1,096        0.29        1,534,147        1,175        0.31   

Borrowed funds

    330,933        753        0.91        283,256        584        0.82        326,720        1,442        1.77   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total interest-bearing liabilities

    1,803,372        1,739        0.39        1,821,324        1,680        0.37        1,860,867        2,617        0.56   
   

 

 

   

 

 

     

 

 

   

 

 

     

 

 

   

 

 

 

Non-interest-bearing deposits

    252,395            210,867            208,915       

Non-interest-bearing liabilities

    14,530            16,690            15,719       
 

 

 

       

 

 

       

 

 

     

Total liabilities

    2,070,297            2,048,881            2,085,501       

Stockholders’ equity

    216,483            215,937            220,193       
 

 

 

       

 

 

       

 

 

     

Total liabilities and stockholders’ equity

  $ 2,286,780          $ 2,264,818          $ 2,305,694       
 

 

 

       

 

 

       

 

 

     

Net interest income

    $ 18,159          $ 18,065          $ 17,544     
   

 

 

       

 

 

       

 

 

   

Net interest rate spread (3)

        3.28         3.31         3.13
     

 

 

       

 

 

       

 

 

 

Net interest margin (4)

        3.35         3.36         3.21
     

 

 

       

 

 

       

 

 

 

 

     FOR THE SIX MONTHS ENDED,  
     JUNE 30, 2014     JUNE 30, 2013  
     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

   $ 27,940       $ 10         0.07   $ 61,140       $ 45         0.15

Securities (1) and FHLB stock

     557,573         4,857         1.74        607,178         5,077         1.67   

Loans receivable, net (2)

     1,573,135         34,776         4.42        1,512,501         35,091         4.64   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-earning assets

     2,158,648         39,643         3.67        2,180,819         40,213         3.69   
     

 

 

    

 

 

      

 

 

    

 

 

 

Non-interest-earning assets

     117,212              118,786         
  

 

 

         

 

 

       

Total assets

   $ 2,275,860            $ 2,299,605         
  

 

 

         

 

 

       

Liabilities and Stockholders’ Equity

                

Interest-bearing liabilities:

                

Transaction deposits

   $ 1,289,760         610         0.09      $ 1,324,466         1,003         0.15   

Time deposits

     215,427         1,472         1.37        218,544         1,498         1.37   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total

     1,505,187         2,082         0.28        1,543,010         2,501         0.32   

Borrowed funds

     307,227         1,337         0.87        323,202         2,979         1.84   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total interest-bearing liabilities

     1,812,414         3,419         0.38        1,866,212         5,480         0.59   
     

 

 

    

 

 

      

 

 

    

 

 

 

Non-interest-bearing deposits

     231,631              196,990         

Non-interest-bearing liabilities

     15,604              16,279         
  

 

 

         

 

 

       

Total liabilities

     2,059,649              2,079,481         

Stockholders’ equity

     216,211              220,124         
  

 

 

         

 

 

       

Total liabilities and stockholders’ equity

   $ 2,275,860            $ 2,299,605         
  

 

 

         

 

 

       

Net interest income

      $ 36,224            $ 34,733      
     

 

 

         

 

 

    

Net interest rate spread (3)

           3.29           3.10
        

 

 

         

 

 

 

Net interest margin (4)

           3.36           3.19
        

 

 

         

 

 

 

 

(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.