OceanFirst Financial Corp. Announces 26.0% Increase in Quarterly Net Income Available...

OceanFirst Financial Corp. Announces 26.0% Increase in Quarterly Net Income
Available to Common Stockholders and Continuation of Cash Dividend

TOMS RIVER, N.J., April 22, 2010 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp.
(Nasdaq:OCFC), the holding company for OceanFirst Bank, today announced that net
income available to common stockholders increased 26.0%, to $4.4 million for the
quarter ended March 31, 2010 from $3.5 million for the corresponding prior year
quarter. Diluted earnings per share amounted to $.24 for the quarter ended March
31, 2010 as compared to $.30 for the corresponding prior year period. The
Company also announced that its Board of Directors declared a regular quarterly
cash dividend on common stock of $.12 per share - covering the three month
period ended March 31, 2010 - to be paid on May 14, 2010, to common shareholders
of record on May 3, 2010.

CEO John R. Garbarino reflected on the increase in net income. "We are pleased
with the strong growth in net income, largely the result of our November 2009
common stock secondary offering and subsequent redemption of preferred stock.
Our Company maintains its strengthened capital position with Tangible Common
Equity Capital of 8.5%. We are also pleased to sustain our quarterly common
stock cash dividend, representing a current attractive yield for our
shareholders."

Results of Operations

Net interest income for the quarter ended March 31, 2010 increased to $19.0
million as compared to $15.7 million in the same prior year period, reflecting a
higher net interest margin and higher levels of interest-earning assets. The
net interest margin increased to 3.76% for the three months ended March 31, 2010
from 3.47% in the same prior year period. The yield on interest-earning assets
decreased to 4.96%, as compared to 5.41% in the same prior year period. The
cost of interest-bearing liabilities decreased to 1.35% for the three months
ended March 31, 2010, as compared to 2.16% in the same prior year period.
Average interest-earning assets increased by $216.8 million for the three months
ended March 31, 2010 as compared to the same prior year period. The increase was
in average mortgage-backed securities which increased $231.0 million.

The provision for loan losses increased to $2.2 million for the quarter ended
March 31, 2010 as compared to $800,000 for the corresponding prior year period.
The increased provision is due to higher levels of non-performing loans and net
charge-offs.

Other income decreased to $3.0 million for the three months ended March 31, 2010
as compared to $3.2 million in the same prior year period. Loan servicing income
(loss) increased to income of $46,000 for the quarter ended March 31, 2010 from
a loss of $230,000 in the same prior year period. The loss for the quarter ended
March 31, 2009 was due to an impairment to the loan servicing asset of $263,000.
The net gain on sales of loans decreased to $503,000 for the three months ended
March 31, 2010 as compared to $673,000 for the three months ended March 31, 2009
due to a decline in the volume of loans sold. The net loss from other real
estate operations was $335,000 for the quarter ended March 31, 2010 as compared
to a loss of $1,000 in the same prior year period due to write-downs in the
value of properties previously acquired.

Operating expenses amounted to $12.7 million for the three months ended March
31, 2010, as compared to $11.8 million for the corresponding prior year period.
The increase was primarily related to increases in compensation and employee
benefits costs relating to incentive compensation and stock plan expense. The
increase was also due to the reduction in mortgage loan closings from prior year
levels. Higher loan closings in the prior year increased deferred loan expense
which is reflected as a reduction to compensation expense.

Dividends on preferred stock and discount accretion totaled $458,000 for the
quarter ended March 31, 2009 as compared to no amounts in the current year
period. The preferred stock was redeemed on December 30, 2009.

Financial Condition

Mortgage-backed securities available for sale increased to $367.2 million at
March 31, 2010 as compared to $213.6 million at December 31, 2009. The increase
is due to purchases of $162.8 million in mortgage-backed securities, all of
which were issued by U.S. government sponsored enterprises. Loans receivable,
net increased by $10.9 million at March 31, 2010 as compared to December 31,
2009 partly due to increased commercial and commercial real estate lending. At
March 31, 2010, the Company was holding subprime loans with a gross principal
balance of $2.2 million and a carrying value, net of write-offs and lower of
cost or market adjustment of $1.8 million. Deposits increased to $1,381.1
million at March 31, 2010 from $1,364.2 million at December 31, 2009. The growth
was concentrated in core deposits, defined as all deposits excluding time
deposits, which increased $25.2 million. Time deposits decreased $8.3 million as
the Bank continued to moderate its pricing for this product. Federal Home Loan
Bank advances increased to $521.1 million at March 31, 2010 from $333.0 million
at December 31, 2009 and were primarily used to fund the increase in
mortgage-backed securities. Stockholders' equity increased to $187.2 million at
March 31, 2010 as compared to $183.5 million at December 31, 2009 due to net
income and a reduction in accumulated other comprehensive loss partly offset by
the cash dividend on common stock.

Asset Quality

The Company's non-performing loans totaled $32.3 million at March 31, 2010, an
increase from $28.3 million at December 31, 2009. The increase was concentrated
in one-to-four family and consumer loans and is reflective of the weak economic
environment. Non-performing loans at March 31, 2010 include $644,000 of loans
repurchased due to early payment default that were written down to market value
on the date of repurchase and $2.1 million of loans previously held for sale
that were also written down to market value. For the three months ended March
31, 2010, the Company realized net loan charge-offs of $1.3 million. Of this
amount, $844,000 are charge-offs relating to loans originated by Columbia Home
Loans, LLC, ("Columbia"), the Company's mortgage banking subsidiary which has
since been shuttered.

The reserve for repurchased loans, which is included in other liabilities in the
Company's consolidated statements of financial condition, was $819,000 at March
31, 2010, unchanged from December 31, 2009. There was no provision for
repurchased loans and no charge-offs during the quarter ended March 31, 2010. At
March 31, 2010, there is one outstanding loan repurchase request on a loan with
a principal balance of $236,000 which the Company is evaluating. There are also
six claims from one loan investor totaling $2.2 million that the Company
believes are covered by a settlement agreement and release between Columbia and
the loan investor executed in August 2007. The Company intends to vigorously
contest these claims and believes there are valid defenses, including the
settlement and release agreement.

Conference Call

As previously announced, the Company will host an earnings conference call on
Friday, April 23, 2010 at 11:00 a.m. Eastern time. The direct dial number for
the call is (800) 860-2442. 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 439365, from one hour after the end of the call until
May 5, 2010. 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 stock savings bank with $2.2 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

This news release contains certain forward-looking statements which are based on
certain assumptions and describe future plans, strategies and expectations of
the Company. These forward-looking statements are generally identified by use
of the words "believe," "expect," "intend," "anticipate," "estimate," "project,"
or similar expressions. The Company's ability to predict results or the actual
effect of future plans or strategies is inherently uncertain. Factors which
could have a material adverse effect on the operations of the Company and the
subsidiaries include, but are not limited to, changes in interest rates, general
economic conditions, legislative/regulatory changes, monetary and fiscal
policies of the U.S. Government, including policies of the U.S. Treasury and the
Federal Reserve Board, the quality or composition of the loan or investment
portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area and accounting principles and
guidelines. These risks and uncertainties 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

March 31, 31, March
31,

2010 2009 2009

----------- ----------
-----------
(Unaudited)
(Unaudited)

ASSETS

------------------------------------------

Cash and due from banks $20,884 $23,016
$23,769
Investment securities available for sale 39,177 37,267
27,557
Federal Home Loan Bank of New York stock,

at cost 27,906 19,434
19,031
Mortgage-backed securities available for

sale 367,189 213,622
97,271
Loans receivable, net 1,640,149 1,629,284
1,650,133
Mortgage loans held for sale 1,668 5,658
1,787
Interest and dividends receivable 6,818 6,059
6,576
Real estate owned, net 2,864 2,613
1,457
Premises and equipment, net 21,862 22,088
20,988
Servicing asset 6,147 6,515
6,735
Bank Owned Life Insurance 40,166 39,970
39,365

Other assets 24,403 24,502
19,064
----------- ----------
-----------

Total assets $2,199,233 $2,030,028
$1,913,733
=========== ==========
===========

LIABILITIES AND STOCKHOLDERS' EQUITY

------------------------------------------

Deposits $1,381,108 $1,364,199
$1,313,470
Securities sold under agreements to

repurchase with retail customers 67,969 64,573
73,054
Federal Home Loan Bank advances 521,100 333,000
320,000
Other borrowings 27,500 27,500
27,500
Due to brokers -- 40,684
--
Advances by borrowers for taxes and

insurance 8,047 7,453
8,491

Other liabilities 6,328 9,083
13,020
----------- ----------
-----------

Total liabilities 2,012,052 1,846,492
1,755,535
----------- ----------
-----------

Stockholders' equity:

Preferred stock, $.01 par value, $1,000

liquidation preference, 5,000,000

shares authorized, no shares issued at

March 31, 2010 and

December 31, 2009, 38,263 shares issued

at March 31, 2009 -- --
37,225
Common stock, $.01 par value, 55,000,000

shares authorized,

33,566,772, 33,566,772 and 27,177,372

shares issued and 18,821,956,

18,821,956 and 12,364,573 shares

outstanding at March 31, 2010,

December 31, 2009 and March 31, 2009,

respectively 336 336
272
Additional paid-in capital 259,837 260,130
205,819
Retained earnings 165,277 163,063
161,409
Accumulated other comprehensive loss (9,102) (10,753)
(16,009)
Less:

Unallocated common stock held by

Employee Stock Ownership Plan (4,703) (4,776)
(4,995)
Treasury stock, 14,744,816, 14,744,816

and 14,812,799 shares at

March 31, 2010, December 31, 2009 and

March 31, 2009, respectively (224,464) (224,464)
(225,523)
Common stock acquired by Deferred

Compensation Plan 943 986
970

Deferred Compensation Plan Liability (943) (986)
(970)
----------- ----------
-----------

Total stockholders' equity 187,181 183,536
158,198
----------- ----------
-----------
Total liabilities and stockholders'

equity $2,199,233 $2,030,028
$1,913,733
=========== ==========
===========

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)

For the three months

ended March 31,
--------------------

2010 2009
----------- -------
(Unaudited)

Interest income:
Loans $21,984 $23,172
Mortgage-backed securities 2,762 768
Investment securities and
other 330 450
----------- -------

Total interest income 25,076 24,390
----------- -------

Interest expense:
Deposits 3,432 5,096

Borrowed funds 2,674 3,632
----------- -------

Total interest expense 6,106 8,728
----------- -------
Net interest income 18,970 15,662

Provision for loan losses 2,200 800
----------- -------
Net interest income after
provision for loan losses 16,770 14,862
----------- -------

Other income:
Loan servicing income (loss) 46 (230)
Fees and service charges 2,557 2,518
Net gain on sales of loans
and securities available for
sale 503 673
Net loss from other real
estate operations (335) (1)
Income from Bank Owned Life
Insurance 196 231

Other 1 3
----------- -------

Total other income 2,968 3,194
----------- -------

Operating expenses:
Compensation and employee
benefits 6,530 5,828
Occupancy 1,464 1,474
Equipment 476 449
Marketing 304 324
Federal deposit insurance 634 502
Data processing 830 835
Legal 296 577
Check card processing 317 251
Accounting and audit 143 160

General and administrative 1,708 1,384
----------- -------

Total operating expenses 12,702 11,784
----------- -------
Income before provision for
income taxes 7,036 6,272

Provision for income taxes 2,632 2,319
----------- -------
Net income 4,404 3,953
Dividends on preferred stock
and warrant accretion -- 458
----------- -------
Net income available to
common stockholders $4,404 $3,495
=========== =======

Basic earnings per share $0.24 $0.30
=========== =======

Diluted earnings per share $0.24 $0.30
=========== =======

Average basic shares
outstanding 18,132 11,696
=========== =======
Average diluted shares
outstanding 18,180 11,743
=========== =======

OceanFirst Financial Corp.

SELECTED CONSOLIDATED FINANCIAL DATA

(in thousands, except per share amounts)

At March 31, At December At March
31,
2010 31, 2009 2009

-------------- --------------
--------------

STOCKHOLDERS' EQUITY

--------------------------------

Stockholders' equity to total

assets 8.51% 9.04%
8.27%
Common shares outstanding (in

thousands) 18,822 18,822
12,365
Stockholders' equity per common

share $9.94 $9.75
$9.78
Tangible stockholders' equity

per common share 9.94 9.75
9.78

ASSET QUALITY

--------------------------------

Non-performing loans:

Real estate -- one-to-four

family $22,633 $19,142 $
9,850
Commercial real estate 4,844 5,152
6,797
Construction 368 368
67
Consumer 3,992 3,031
2,084

Commercial 466 627
904
-------------- --------------
--------------
Total non-performing loans 32,303 28,320
19,702

REO, net 2,864 2,613
1,457
-------------- --------------
--------------

Total non-performing assets $35,167 $30,933
$21,159
============== ==============
==============

Delinquent loans 30 to 89 days $11,478 $15,528
$14,184
============== ==============
==============

Allowance for loan losses $15,632 $14,723
$12,019
============== ==============
==============
Allowance for loan losses as a

percent of total

loans receivable 0.94% 0.89%
0.72%
Allowance for loan losses as a

percent of

non-performing loans 48.39 51.99
61.00
Non-performing loans as a

percent of

total loans receivable 1.95 1.72
1.18
Non-performing assets as a

percent of total

assets 1.60 1.52
1.11

For the three
months ended

March 31,
-----------------

2010 2009
------ ------

PERFORMANCE RATIOS (ANNUALIZED)
------------------------------------
Return on average assets 0.83% 0.84%
Return on average stockholders'
equity 9.61 10.46
Interest rate spread 3.61 3.25
Interest rate margin 3.76 3.47
Operating expenses to average assets 2.39 2.49
Efficiency ratio 57.90 62.49

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(in thousands)

LOANS RECEIVABLE
-------------------------

At
At March December
31, 2010 31, 2009
---------- ----------
Real estate:
One- to-four family $953,612 $954,736
Commercial real estate,
multi-family and land 402,098 396,883
Construction 9,585 9,241
Consumer 215,115 217,290

Commercial 75,423 70,214
---------- ----------
Total loans 1,655,833 1,648,364

Loans in process (3,262) (3,466)
Deferred origination
costs, net 4,878 4,767
Allowance for loan
losses (15,632) (14,723)
---------- ----------

Total loans, net 1,641,817 1,634,942

Less: mortgage loans held
for sale 1,668 5,658
---------- ----------

Loans receivable, net $1,640,149 $1,629,284
========== ==========

Mortgage loans serviced
for others $941,241 $952,871
Loan pipeline 84,140 90,320

For the three
months ended

March 31,
------------------

2010 2009
-------- --------

Loan originations $107,668 $127,249
Loans sold 29,283 48,438
Net charge-offs 1,291 446

DEPOSITS
--------------------------

At
At March December
31, 2010 31, 2009
---------- ----------

Type of Account
--------------------------

Non-interest-bearing $117,562 $107,721
Interest-bearing checking 615,618 615,347
Money market deposit 100,086 96,886
Savings 243,970 232,081

Time deposits 303,872 312,164
---------- ----------

$1,381,108 $1,364,199
========== ==========

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

FOR THE THREE
MONTHS ENDED MARCH 31,

--------------------------------------------------------------------------------
--------

2010
2009
-------------------------------------------
-------------------------------------------

AVERAGE AVERAGE YIELD/
AVERAGE AVERAGE YIELD/
BALANCE INTEREST COST
BALANCE INTEREST COST
-------------------------------------------
-------------------------------------------
(Dollars in
thousands)
Assets

Interest-earning assets:

Interest-earning deposits

and short-term investments $ -- $ -- -- %
$ -- $ -- -- %
Investment securities (1) 55,971 126 .90
56,136 301 2.14
FHLB stock 24,284 204 3.36
19,102 149 3.12
Mortgage-backed securities (1) 307,528 2,762 3.59
76,492 768 4.02

Loans receivable, net (2) 1,632,904 21,984 5.39
1,652,110 23,172 5.61
-------------------------------------------
-------------------------------------------

Total interest-earning assets 2,020,687 25,076 4.96
24,390 5.41
------------------------------
1,803,840------------------------------

Non-interest-earning assets 107,697
85,853
-------------
-------------

Total assets $2,128,384
$1,889,693
=============
=============
Liabilities and Stockholders'

Equity

Interest-bearing liabilities:

Transaction deposits $ 965,181 1,984 .82
$ 844,953 2,653 1.26

Time deposits 306,230 1,448 1.89
360,136 2,443 2.71
-------------------------------------------
-------------------------------------------
Total 1,271,411 3,432 1.08
1,205,089 5,096 1.69

Borrowed funds 537,561 2,674 1.99
411,199 3,632 3.53
-------------------------------------------
-------------------------------------------
Total interest-bearing

liabilities 1,808,972 6,106 1.35
8,728 2.16
------------------------------
1,616,288------------------------------
Non-interest-bearing deposits 113,518
105,363

Non-interest-bearing liabilities 22,540
16,944
-------------
-------------
Total liabilities 1,945,030
1,738,595

Stockholders' equity 183,354
151,098
-------------
-------------
Total liabilities and

stockholders' equity $2,128,384
$1,889,693
=============
=============

Net interest income $18,970
$15,662
==============
==============

Net interest rate spread (3) 3.61%
3.25%
================
================

Net interest margin (4) 3.76%
3.47%
================
================

(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.

CONTACT: OceanFirst Financial Corp.
Michael J. Fitzpatrick, Chief Financial Officer
(732)240-4500, ext. 7506
Fax: (732)349-5070
Mfitzpatrick@oceanfirst.com