OceanFirst Financial Corp. Announces Growth In Deposits, Loans, Revenue And Earnings Per Share

TOMS RIVER, N.J., July 22, 2010 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (Nasdaq:OCFC) , the holding company for OceanFirst Bank, today announced that diluted earnings per share increased to $.27 for the quarter ended June 30, 2010 as compared to $.24 in the prior linked quarter and $.26 for the corresponding prior year period. Other growth highlights for the quarter ended June 30, 2010 include:

• Deposits increased $158.9 million during the quarter of which $156.6 million was growth in core deposits, defined as all deposits excluding time deposits.
• Loans receivable, net increased $27.3 million during the quarter of which $26.2 million was growth in commercial loans.
• Total revenue (net interest income and total other income) increased to $23.3 million for the quarter ended June 30, 2010 as compared to $21.9 million for the prior linked quarter and $20.3 million for the corresponding prior year quarter.

The Company also announced that its Board of Directors declared the quarterly cash dividend on common stock of $.12 per share - covering the three month period ended June 30, 2010 - to be paid on August 13, 2010, to common shareholders of record on August 2, 2010. 

CEO John R. Garbarino reflected on the growth: "We are gratified with the across the board growth over both the linked and prior year periods. Our Company continues to maintain its strengthened capital position with Tangible Common Equity Capital of 8.78%. We are also pleased to declare our fifty-fourth consecutive quarterly common stock cash dividend, representing a current attractive yield for our shareholders."

Results of Operations

Net interest income for the three and six months ended June 30, 2010 increased to $19.7 million and $38.7 million, respectively, as compared to $16.2 million and $31.8 million, respectively, in the same prior year periods, reflecting a higher net interest margin and higher levels of interest-earning assets. The net interest margin increased to 3.78% and 3.77%, respectively, for the three and six months ended June 30, 2010 from 3.56% and 3.52%, respectively, in the same prior year periods.  The yield on interest-earning assets decreased to 4.96%, for both the three and six months ended June 30, 2010, as compared to 5.33% and 5.37%, respectively, in the same prior year periods. The cost of interest-bearing liabilities decreased to 1.31% and 1.33%, respectively, for the three and six months ended June 30, 2010, as compared to 2.00% and 2.08%, respectively, in the same prior year periods. Average interest-earning assets increased by $266.9 million and $242.0, respectively, for the three and six months ended June 30, 2010 as compared to the same prior year periods. The increase was in average mortgage-backed securities which increased $266.8 million and $249.0, respectively, for the three and six months ended June 30, 2010.