Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 24, 2020 (July 23, 2020)
 
 
OCEANFIRST FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
 
Delaware
 
001-11713
 
22-3412577
(State or other jurisdiction of
incorporation or organization)
 
(Commission
File No.)
 
(IRS Employer
Identification No.)
110 West Front Street, Red Bank, New Jersey 07701
(Address of principal executive offices, including zip code)
(732)240-4500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading symbol
 
Name of each exchange in which registered
Common stock, $0.01 par value per share
 
OCFC
 
NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
 
OCFCP
 
NASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company





If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 






ITEM 2.02
RESULTS OF OPERATION AND FINANCIAL CONDITION
On July 23, 2020, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2020. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01    REGULATION FD DISCLOSURE
The Company is scheduled to make presentations to current and prospective investors after July 23, 2020. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which OceanFirst Financial Corp. will make available at these presentations and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed “filed” for any purpose.

ITEM 8.01
OTHER EVENTS
In the press release described in Item 2.02, the Company announced that the Board of Directors declared a regular quarterly cash dividend on the Company’s outstanding common stock. The cash dividend will be in the amount of $0.17 per share and will be payable on August 14, 2020 to the stockholders of record at the close of business on August 3, 2020.
ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS
 
(d)
EXHIBITS
 
 
 
99.1
Press Release dated
July 23, 2020
99.2
Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after July 23, 2020.






SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
OCEANFIRST FINANCIAL CORP.
 
 
 
Dated:
July 24, 2020
/s/ Michael J. Fitzpatrick
 
 
Michael J. Fitzpatrick
 
 
Executive Vice President and Chief Financial Officer






















































Exhibit Index
 
Exhibit
  
Description
 
  
Press release dated
July 23, 2020
 
Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after July 23, 2020.



Exhibit

 
Press Release

Exhibit 99.1
Company Contact:
  
Michael J. Fitzpatrick
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 7506
Email: Mfitzpatrick@oceanfirst.com


FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES SECOND QUARTER EARNINGS AND
FINANCIAL RESULTS

RED BANK, NEW JERSEY, July 23, 2020…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), today announced that net income was $18.6 million, or $0.31 per diluted share, for the three months ended June 30, 2020, as compared to $19.0 million, or $0.37 per diluted share, for the corresponding prior year period. For the six months ended June 30, 2020, net income was $35.2 million, or $0.58 per diluted share, as compared to $40.2 million, or $0.79 per diluted share, for the corresponding prior year period.
The results of operations for the three months ended June 30, 2020 include merger related and branch consolidation expenses, which decreased net income, net of tax benefit, by $3.0 million. Results of operations for the six months ended June 30, 2020 include merger related expenses, branch consolidation expenses, and the Two River Bancorp (“Two River”) and Country Bank Holding Company, Inc. (“Country Bank”) opening credit loss expense under the Current Expected Credit Loss (“CECL”) model, which decreased net income, net of tax benefit, by $13.4 million. Excluding these items, core earnings for the three and six months ended June 30, 2020 were $21.6 million, or $0.36 per diluted share, and $48.6 million, or $0.81 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, branch consolidation, and the Two

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River and Country Bank opening credit loss expenses). The quarter and year to date results were also impacted by the COVID-19 outbreak, through both higher credit loss expense and increased operating expense.
Highlights for the quarter are described below:
Loans & Deposits: Drove record loan and deposit growth, including quarterly originations of $975 million, which included $504 million of Paycheck Protection Program (“PPP”) loans and total loan growth of $450 million after loan sales of $110 million. Deposits increased by $1.076 billion, driven by deposits from PPP borrowers of $504 million, ordinary course growth of $291 million, and short-term brokered deposits of $281 million.
Capital: Bolstered a strong balance sheet with the addition of $181 million of subordinated notes and non-cumulative perpetual preferred stock. The increased capital further strengthened resources available to the Bank while credit metrics, including delinquencies, forbearances, and net charge-offs all evidenced significant positive trends.
Operating Expenses: Improved operating leverage with the consolidation of thirteen branch locations, eight of which were driven by the completed integration of the Two River acquisition bringing the total number of branches consolidated over the past four years to 53. These consolidations increased the average branch size to $145 million and will help reduce operating expenses beginning in the third quarter.
COVID-19: The Company’s second quarter results were adversely impacted by the COVID-19 pandemic, including an elevated credit loss provision of $9.6 million and an additional $1.1 million in operating expense.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “The second quarter results included strong loan and deposit growth as we continued to serve our communities at a very difficult time. We facilitated $504 million in PPP loans, assisting local businesses and supporting 57,000 jobs.” Mr. Maher added, “The continuing national health crisis may weigh on results

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in future quarters, but we are exceptionally proud of our customers in New Jersey, New York, and Pennsylvania, who have worked with public health experts to bring the local epidemic under control and to begin a responsible and sustainable restart of our regional economy. The second quarter capital raise and the integration of the Two River acquisition have placed our Company in an advantageous position to face the future.”
The Company announced that the Company’s Board of Directors declared its ninety-fourth consecutive quarterly cash dividend on common stock. The dividend, related to the three months ended June 30, 2020, of $0.17 per share will be paid on August 14, 2020 to stockholders of record on August 3, 2020.
Results of Operations
On January 31, 2019, the Company completed its acquisition of Capital Bank of New Jersey (“Capital Bank”) and its results of operations are included in the consolidated results for the three and six months ended June 30, 2020, but are excluded from the results of operations for the period from January 1, 2019 to January 31, 2019.
On January 1, 2020, the Company completed its acquisitions of Two River and Country Bank and their respective results of operations from January 1, 2020 through June 30, 2020 are included in the consolidated results for the three and six months ended June 30, 2020, but are not included in the results of operations for the corresponding prior year periods.
Net income for the three months ended June 30, 2020 was $18.6 million, or $0.31 per diluted share, as compared to $19.0 million, or $0.37 per diluted share, for the corresponding prior year period. Net income for the six months ended June 30, 2020 was $35.2 million, or $0.58 per diluted share, as compared to $40.2 million, or $0.79 per diluted share, for the corresponding prior year period. Net income for the three months ended June 30, 2020 included merger related and branch consolidation expenses, which decreased net income, net of tax benefit, by $3.0 million. Net income for the six months ended June 30, 2020 included merger related expenses, branch consolidation expenses, and the Two River and Country

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Bank opening credit loss expense under the CECL model, which decreased net income, net of tax benefit, by $13.4 million. Net income for the three and six months ended June 30, 2019 included merger related expenses, branch consolidation expenses, and compensation expense due to the retirement of an executive officer, which decreased net income, net of tax benefit, by $7.0 million and $11.4 million, respectively. Excluding these items, net income for the three and six months ended June 30, 2020 was $21.6 million and $48.6 million, respectively, a decrease from $26.0 million and $51.6 million for the same prior year periods, respectively, primarily due to the adverse impact of the COVID-19 outbreak.
Net interest income for the three and six months ended June 30, 2020 increased to $78.7 million, and $158.3 million, as compared to $64.8 million and $129.2 million for the same prior year periods, respectively, reflecting an increase in interest-earning assets, partly offset by a reduction in net interest margin. Average interest-earning assets increased by $2.684 billion and $2.435 billion for the three and six months ended June 30, 2020, respectively, as compared to the same prior year periods. The averages for the three and six months ended June 30, 2020 were favorably impacted by $1.815 billion and $1.793 billion, respectively, of interest-earning assets acquired from Two River and Country Bank and $373.7 million and $186.8 million, respectively, of PPP loans. Average loans receivable, net, increased by $2.347 billion and $2.215 billion for the three and six months ended June 30, 2020, respectively, as compared to the same prior year periods. The increases attributable to the acquisitions of Two River and Country Bank for the three and six months ended June 30, 2020 were $1.606 billion and $1.581 billion, respectively. The net interest margin for the three and six months ended June 30, 2020 decreased to 3.24% and 3.37%, respectively, from 3.66% and 3.72%, respectively, for the same prior year periods. The compression in net interest margin is primarily due to the lower interest rate environment, the origination of low-yielding PPP loans, and the excess balance sheet liquidity which the Company strategically accumulated entering the economic downturn. For the three months ended June 30, 2020, the cost of average interest-bearing liabilities decreased to 0.92% from 0.98% in the corresponding prior year period. For the six months ended June 30, 2020, the cost of average interest-bearing liabilities increased to 0.98% from 0.94%, in the

4


corresponding prior year period. The total cost of deposits (including non-interest bearing deposits) was 0.57% and 0.63% for the three and six months ended June 30, 2020, respectively, as compared to 0.62% and 0.60%, respectively, in the same prior year periods.
Net interest income for the three months ended June 30, 2020, decreased by $1.0 million, as compared to the prior linked quarter, as the net interest margin decreased to 3.24% as compared to 3.52% for the prior linked quarter. The yield on average interest-earning assets decreased to 3.94% from 4.34% in the prior linked quarter, primarily due to the lower interest rate environment, the origination of low-yielding PPP loans, and the excess balance sheet liquidity which the Company strategically accumulated entering the economic downturn. The total cost of deposits (including non-interest bearing deposits) was 0.57% for the three months ended June 30, 2020, as compared to 0.70% for the three months ended March 31, 2020. The decrease in total cost of deposits is primarily due to the repricing of deposits acquired from Two River and Country Bank and the growth in business deposits relating to PPP originations.
For the three and six months ended June 30, 2020, the credit loss expense was $9.6 million and $19.6 million, respectively, as compared to $356,000 and $976,000, respectively, for the corresponding prior year periods, and $10.0 million in the prior linked quarter. Net loan recoveries were $232,000 for the quarter and net loan charge-offs were $922,000 for the six months ended June 30, 2020, as compared to net loan charge-offs of $926,000 and $1.4 million in the corresponding prior year periods, and $1.2 million in the prior linked quarter. The prior linked quarter included $949,000 in charge-offs on the sale of higher risk residential loans. Non-performing loans totaled $21.0 million at June 30, 2020, as compared to $16.3 million at March 31, 2020 and $17.8 million at June 30, 2019. Credit expense for the three and six months ended June 30, 2020 was significantly influenced by economic conditions related to the COVID-19 outbreak and estimates of how those conditions may impact the Company’s customers. As a result of the COVID-19 outbreak, loans under forbearance totaled $1.5 billion at June 30, 2020. The forbearance pool is expected to decrease substantially as borrowers are beginning to return to monthly payments. As of July 15, 2020, borrowers with balances totaling $650 million have indicated to the Bank

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that they will return to regular monthly payments. Due to the U.S. government guarantee on PPP loans, there is no credit allowance on these loans. Refer to exhibits filed with the earnings release on Form 8-K for detailed information on credit loss expense and loans under forbearance agreements.
For the three and six months ended June 30, 2020, other income increased to $11.4 million and $25.1 million, respectively, as compared to $9.9 million and $19.4 million, respectively, for the corresponding prior year periods. Excluding the Two River and Country Bank acquisitions which added $692,000, the increase in other income for the three months ended June 30, 2020 was due to an increase in commercial loan swap income of $1.9 million, and an increase in the net gain on sales of loans of $619,000, partially offset by lower fees and service charges of $1.7 million, as compared to the corresponding prior year period. For the six months ended June 30, 2020, excluding the Two River and Country Bank acquisitions which added $1.4 million, the increase in other income was due to the increase in commercial swap income of $5.5 million, and an increase in the net gain on sales of loans of $733,000, partially offset by decreases in fees and service charges of $1.8 million. The waiver of certain fees during the COVID-19 pandemic may continue to suppress deposit fee income for the remainder of the public health crisis.
For the three months ended June 30, 2020, other income decreased by $2.3 million, as compared to the prior linked quarter. The decrease was primarily due to lower fees and service charges of $1.6 million and lower commercial loan swap income of $1.6 million, partially offset by an increase in the net gain on sale of loans of $583,000.
Operating expenses increased to $55.9 million and $118.7 million for the three and six months ended June 30, 2020, respectively, as compared to $50.9 million and $98.2 million, respectively, in the same prior year periods. Operating expenses for the three and six months ended June 30, 2020 included $3.9 million and $15.1 million, respectively, of merger related and branch consolidation expenses, as compared to $8.9 million and $14.3 million of merger related expenses, branch consolidation expenses, and compensation expense due to the retirement of an executive officer, respectively, in the same prior

6


year periods. Excluding the impact of merger related expenses, branch consolidation expenses, and compensation expense due to the retirement of an executive officer, the change in operating expenses over the prior year was due to the Two River and Country Bank acquisitions, which added $7.6 million and $16.1 million, respectively, for the three and six months ended June 30, 2020. The remaining increase in operating expenses for the three months ended June 30, 2020 was primarily due to a Federal Home Loan Bank (“FHLB”) prepayment penalty fee of $924,000 and expenses related to COVID-19 of $1.1 million. The increase in operating expenses for the six months ended June 30, 2020 was primarily due to a FHLB prepayment penalty fee of $924,000 and expenses related to COVID-19 of $2.1 million.
For the three months ended June 30, 2020, operating expenses increased by $324,000, as compared to the prior linked quarter, excluding merger related and branch consolidation expenses. The increase was due to a FHLB prepayment penalty fee of $924,000.
   The provision for income taxes was $5.9 million and $9.9 million for the three and six months ended June 30, 2020, respectively, as compared to $4.5 million and $9.3 million, respectively, for the same prior year periods. The effective tax rate was 24.0% and 22.0% for the three and six months ended June 30, 2020, respectively, as compared to 19.0% and 18.8%, respectively, for the same prior year periods. The higher effective tax rate in the current year period is primarily due to the impact of a New Jersey tax code change and a higher allocation of taxable income to New York due to the acquisition of Country Bank.

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Financial Condition
Total assets increased by $3.099 billion, to $11.345 billion at June 30, 2020, from $8.246 billion at December 31, 2019, primarily as a result of the acquisitions of Two River and Country Bank, which added $2.031 billion to total assets. Cash and due from banks increased by $600.5 million, to $721.0 million at June 30, 2020, from $120.5 million at December 31, 2019, due to the Company’s decision to build liquidity during the economic downturn and the cash received from the issuance of subordinated notes and non-cumulative perpetual preferred stock as described below. Loans receivable, net of allowance for credit losses, increased by $2.128 billion, to $8.335 billion at June 30, 2020, from $6.208 billion at December 31, 2019, due to acquired loans from Two River and Country Bank of $1.558 billion coupled with strong organic loan growth. As part of the acquisitions of Two River and Country Bank, the Company’s goodwill balance increased to $501.5 million at June 30, 2020, from $374.6 million at December 31, 2019 and the core deposit intangible increased to $26.7 million, from $15.6 million. Other assets increased by $57.1 million to $226.6 million at June 30, 2020, from $169.5 million at December 31, 2019, primarily due to the increase in swap positions.
Deposits increased by $2.639 billion, to $8.968 billion at June 30, 2020, from $6.329 billion at December 31, 2019, primarily due to acquired deposits from Two River and Country Bank of $1.594 billion. The loan-to-deposit ratio at June 30, 2020 was 93.4%, as compared to 98.2% at December 31, 2019. The deposit growth funded a decrease in FHLB advances of $175.9 million to $343.4 million at June 30, 2020, from $519.3 million at December 31, 2019. The increase in other borrowings of $150.0 million to $246.8 million at June 30, 2020, from $96.8 million at December 31, 2019, primarily resulted from the May 2020 issuance of $125.0 million in subordinated notes at an initial rate of 5.25% and a stated maturity of May 15, 2030. Other liabilities increased by $76.0 million to $138.5 million at June 30, 2020, from $62.6 million at December 31, 2019, primarily due to the increase in swap positions.
Stockholders’ equity increased to $1.476 billion at June 30, 2020, as compared to $1.153 billion at December 31, 2019. The acquisitions of Two River and Country Bank added $261.4 million to

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stockholders’ equity. During the three months ended June 30, 2020, the Company raised $55.7 million from the issuance of 7.0% fixed-to-floating rate non-cumulative perpetual preferred stock, with a par value of $0.01 and a liquidation price of $1,000 per share. Under the Company’s stock repurchase program, there were 2,019,145 shares available for repurchase at June 30, 2020. The Company suspended its repurchase activity on February 28, 2020. For the six months ended June 30, 2020, the Company repurchased 648,851 shares under the repurchase program at a weighted average cost of $22.83. Tangible common stockholders’ equity per common share increased to $14.79 at June 30, 2020, as compared to $14.62 at March 31, 2020.
Asset Quality
The Company’s non-performing loans increased to $21.0 million at June 30, 2020, as compared to $17.8 million at December 31, 2019. Non-performing loans do not include $61.7 million of purchased with credit deterioration (“PCD”) loans acquired in the Two River, Country Bank, Capital Bank, Sun Bancorp, Inc. (“Sun”), Ocean Shore Holding Co. (“Ocean Shore”), Cape Bancorp, Inc. (“Cape”), and Colonial American Bank (“Colonial American”) acquisitions (“Acquisition Transactions”). The Company’s other real estate owned totaled $248,000 at June 30, 2020, as compared to $264,000 at December 31, 2019. At June 30, 2020, the Company had outstanding loans under forbearance of $1.5 billion. As of July 15, 2020, customers with balances totaling $650 million have indicated to the Bank that they will return to regular monthly payments. Refer to exhibits filed with the earnings release on Form 8-K for detailed information on credit loss expense and loans subject to forbearance.
At June 30, 2020, the Company’s allowance for credit losses was 0.46% of total loans, an increase from 0.27% at December 31, 2019. The allowance for credit losses as a percentage of total non-performing loans was 183.0% at June 30, 2020, as compared to 94.4% at December 31, 2019.

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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, branch consolidation expenses, Two River and Country Bank opening credit loss expense under the CECL model, non-recurring professional fees, compensation expense due to the retirement of an executive officer, and reduction in income tax expense from the revaluation of state deferred tax assets as a result of a change in the New Jersey tax code, 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.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, July 24, 2020 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 10145712 from one hour after the end of the call until October 30, 2020. 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.
* * *

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OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.3 billion regional bank operating throughout New Jersey, metropolitan Philadelphia and metropolitan New York City.  OceanFirst Bank delivers commercial and residential financing solutions, trust and asset 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: the impact of the COVID-19 pandemic on our operations and financial results and those of our customers, 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, 2019, under Item 1A - Risk Factors and elsewhere, 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.


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

 
 
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
June 30,
2019
 
 
(Unaudited)
 
(Unaudited)
 
 
 
(Unaudited)
Assets
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
721,049

 
$
256,470

 
$
120,544

 
$
148,327

Debt securities available-for-sale, at estimated fair value
 
153,239

 
153,738

 
150,960

 
123,610

Debt securities held-to-maturity, net of allowance for credit losses of $2,446 at June 30, 2020 and $2,529 at March 31, 2020 (estimated fair value of $895,897 at June 30, 2020, $928,582 at March 31, 2020, $777,290 at December 31, 2019 and $869,167 at June 30, 2019)
 
867,959

 
914,255

 
768,873

 
863,838

Equity investments, at estimated fair value
 
13,830

 
14,409

 
10,136

 
10,002

Restricted equity investments, at cost
 
68,091

 
81,005

 
62,356

 
59,425

Loans receivable, net of allowance for credit losses of $38,509 at June 30, 2020, $29,635 at March 31, 2020, $16,852 at December 31, 2019 and $16,135 at June 30, 2019
 
8,335,480

 
7,913,541

 
6,207,680

 
5,943,930

Loans held-for-sale
 
21,799

 
17,782

 

 

Interest and dividends receivable
 
37,811

 
27,930

 
21,674

 
22,106

Other real estate owned
 
248

 
484

 
264

 
865

Premises and equipment, net
 
100,576

 
104,560

 
102,691

 
105,853

Bank Owned Life Insurance
 
262,637

 
261,270

 
237,411

 
235,162

Assets held for sale
 
7,828

 
3,785

 
3,785

 
4,198

Goodwill
 
501,472

 
500,093

 
374,632

 
374,592

Core deposit intangible
 
26,732

 
28,276

 
15,607

 
17,614

Other assets
 
226,614

 
211,476

 
169,532

 
119,535

Total assets
 
$
11,345,365

 
$
10,489,074

 
$
8,246,145

 
$
8,029,057

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
Deposits
 
$
8,967,754

 
$
7,892,067

 
$
6,328,777

 
$
6,187,487

Federal Home Loan Bank advances
 
343,392

 
825,824

 
519,260

 
453,646

Securities sold under agreements to repurchase with retail customers
 
152,821

 
90,175

 
71,739

 
62,086

Other borrowings
 
246,840

 
120,213

 
96,801

 
96,533

Advances by borrowers for taxes and insurance
 
19,582

 
24,931

 
13,884

 
14,817

Other liabilities
 
138,542

 
126,030

 
62,565

 
77,193

Total liabilities
 
9,868,931

 
9,079,240

 
7,093,026

 
6,891,762

Total stockholders’ equity
 
1,476,434

 
1,409,834

 
1,153,119

 
1,137,295

Total liabilities and stockholders’ equity
 
$
11,345,365

 
$
10,489,074

 
$
8,246,145

 
$
8,029,057


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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)
 
 
For the Three Months Ended,
 
For the Six Months Ended,
 
 
June 30,
2020
 
March 31,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
 
 
|-------------------- (Unaudited) --------------------|
 
|---------- (Unaudited) -----------|
Interest income:
 
 
 
 
 
 
 
 
 
 
Loans
 
$
88,347

 
$
89,944

 
$
70,917

 
$
178,291

 
$
139,918

Mortgage-backed securities
 
3,593

 
3,844

 
3,946

 
7,437

 
7,987

Debt securities, equity investments and other
 
3,937

 
4,419

 
3,547

 
8,356

 
6,927

Total interest income
 
95,877

 
98,207

 
78,410

 
194,084

 
154,832

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
12,305

 
13,936

 
9,762

 
26,241

 
18,401

Borrowed funds
 
4,905

 
4,626

 
3,811

 
9,531

 
7,206

Total interest expense
 
17,210

 
18,562

 
13,573

 
35,772

 
25,607

Net interest income
 
78,667

 
79,645

 
64,837

 
158,312

 
129,225

Credit loss expense
 
9,649

 
9,969

 
356

 
19,618

 
976

Net interest income after credit loss expense
 
69,018

 
69,676

 
64,481

 
138,694

 
128,249

Other income:
 
 
 
 
 
 
 
 
 
 
Bankcard services revenue
 
2,741

 
2,481

 
2,679

 
5,222

 
4,964

Trust and asset management revenue
 
555

 
515

 
569

 
1,070

 
1,067

Fees and service charges
 
3,253

 
4,873

 
4,595

 
8,126

 
9,111

Net gain on sales of loans
 
756

 
173

 
7

 
929

 
15

Net gain on equity investments
 
148

 
155

 
133

 
303

 
241

Net loss from other real estate operations
 
(52
)
 
(150
)
 
(121
)
 
(202
)
 
(127
)
Income from Bank Owned Life Insurance
 
1,521

 
1,575

 
1,293

 
3,096

 
2,614

Commercial loan swap income
 
2,489

 
4,050

 
612

 
6,539

 
1,084

Other
 
19

 
25

 
112

 
44

 
422

Total other income
 
11,430

 
13,697

 
9,879

 
25,127

 
19,391

Operating expenses:
 
 
 
 
 
 
 
 
 
 
Compensation and employee benefits
 
27,935

 
29,885

 
23,704

 
57,820

 
46,118

Occupancy
 
5,268

 
5,276

 
4,399

 
10,544

 
8,929

Equipment
 
1,982

 
1,943

 
1,936

 
3,925

 
3,882

Marketing
 
753

 
769

 
1,137

 
1,522

 
2,067

Federal deposit insurance and regulatory assessments
 
1,133

 
667

 
802

 
1,800

 
1,634

Data processing
 
4,149

 
4,177

 
3,684

 
8,326

 
7,338

Check card processing
 
1,290

 
1,276

 
1,322

 
2,566

 
2,760

Professional fees
 
2,683

 
2,302

 
1,408

 
4,985

 
3,117

Other operating expense
 
5,262

 
3,802

 
3,882

 
9,064

 
7,251

Amortization of core deposit intangible
 
1,544

 
1,578

 
1,015

 
3,122

 
2,020

Branch consolidation expense
 
863

 
2,594

 
6,695

 
3,457

 
7,086

Merger related expenses
 
3,070

 
8,527

 
931

 
11,597

 
5,984

Total operating expenses
 
55,932

 
62,796

 
50,915

 
118,728

 
98,186

Income before provision for income taxes
 
24,516

 
20,577

 
23,445

 
45,093

 
49,454

Provision for income taxes
 
5,878

 
4,044

 
4,465

 
9,922

 
9,301

Net income
 
$
18,638

 
$
16,533

 
$
18,980

 
$
35,171

 
$
40,153

Basic earnings per share
 
$
0.31

 
$
0.28

 
$
0.37

 
$
0.59

 
$
0.80

Diluted earnings per share
 
$
0.31

 
$
0.27

 
$
0.37

 
$
0.58

 
$
0.79

Average basic shares outstanding
 
59,877

 
59,876

 
50,687

 
59,881

 
50,115

Average diluted shares outstanding
 
59,999

 
60,479

 
51,290

 
60,122

 
50,728


13


OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLE
 
 
At
 
 
 
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
$
910,762

 
$
502,760

 
$
396,434

 
$
406,580

 
$
392,336

Commercial real estate - owner - occupied
 
1,199,742

 
1,220,983

 
792,653

 
787,752

 
771,640

Commercial real estate - investor
 
3,449,160

 
3,331,662

 
2,296,410

 
2,232,159

 
2,143,093

Total commercial
 
 
5,559,664

 
5,055,405

 
3,485,497

 
3,426,491

 
3,307,069

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
 
 
2,426,277

 
2,458,641

 
2,321,157

 
2,234,361

 
2,193,829

Home equity loans and lines
 
 
320,627

 
335,624

 
318,576

 
330,446

 
341,972

Other consumer
 
 
71,721

 
82,920

 
89,422

 
98,835

 
109,015

Total consumer
 
 
2,818,625

 
2,877,185

 
2,729,155

 
2,663,642

 
2,644,816

Total loans
 
 
8,378,289

 
7,932,590

 
6,214,652

 
6,090,133

 
5,951,885

Deferred origination (fees) costs, net
 
(4,300
)
 
10,586

 
9,880

 
8,441

 
8,180

Allowance for credit losses
 
 
(38,509
)
 
(29,635
)
 
(16,852
)
 
(16,636
)
 
(16,135
)
Loans receivable, net
 
 
$
8,335,480

 
$
7,913,541

 
$
6,207,680

 
$
6,081,938

 
$
5,943,930

Mortgage loans serviced for others
 
$
101,840

 
$
51,399

 
$
50,042

 
$
54,457

 
$
90,882

 
At June 30, 2020 Average Yield
 
 
 
 
 
 
 
 
 
 
Loan pipeline (1):
 
 
 
 
 
 
 
 
 
 
 
Commercial
3.95
%
 
$
169,093

 
$
293,820

 
$
219,269

 
$
126,578

 
$
212,712

Residential real estate
3.39

 
181,800

 
223,032

 
105,396

 
189,403

 
82,555

Home equity loans and lines
4.33

 
8,282

 
8,429

 
3,049

 
3,757

 
2,550

Total
3.67
%
 
$
359,175

 
$
525,281

 
$
327,714

 
$
319,738

 
$
297,817

 
For the Three Months Ended
 
 
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
 
 
Average Yield
 
 
 
 
 
 
 
 
 
 
 
Loan originations:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
3.16
%
 
$
216,979

(2) 
$
266,882

 
$
264,938

 
$
315,405

 
$
123,882

 
Residential real estate
3.37

 
242,137

 
148,675

 
226,492

 
156,308

 
120,771

 
Home equity loans and lines
4.37

 
12,128

 
10,666

 
12,961

 
10,498

 
14,256

 
Total
3.30
%
 
$
471,244

 
$
426,223

 
$
504,391

 
$
482,211

 
$
258,909

 
Loans sold
 
 
$
104,600

(3) 
$
7,500

(3) 
$
110

 
$

(3) 
$
403

(3) 
(1)
Loan pipeline includes loans approved but not funded.
(2)
Excludes loans originated through the Paycheck Protection Program of $504 million.
(3)
Excludes the sale of under-performing commercial loans of $4.9 million for the three months ended June 30, 2020, under-performing residential loans of $4.0 million and commercial loans of $5.1 million for the three months ended March 31, 2020, small business administration loans of $3.5 million for the three months ended September 30, 2019 and under-performing residential loans of $2.9 million for the three months ended June 30, 2019.
DEPOSITS
At
 
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
Type of Account
 
 
 
 
 
 
 
 
 
Non-interest-bearing
$
2,161,766

 
$
1,783,216

 
$
1,377,396

 
$
1,406,194

 
$
1,370,167

Interest-bearing checking
3,022,887

 
2,647,487

 
2,539,428

 
2,400,331

 
2,342,913

Money market deposit
680,199

 
620,145

 
578,147

 
593,457

 
642,985

Savings
1,456,931

 
1,420,628

 
898,174

 
901,168

 
909,501

Time deposits
1,645,971

 
1,420,591

 
935,632

 
919,705

 
921,921

 
$
8,967,754

 
$
7,892,067

 
$
6,328,777

 
$
6,220,855

 
$
6,187,487


14


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
Non-performing loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
1,586

 
$
207

 
$
207

 
$
207

 
$
207

Commercial real estate - owner-occupied
4,582

 
4,219

 
4,811

 
4,537

 
4,818

Commercial real estate - investor
5,274

 
3,384

 
2,917

 
4,073

 
4,050

Residential real estate
6,568

 
5,920

 
7,181

 
5,953

 
5,747

Home equity loans and lines
3,034

 
2,533

 
2,733

 
2,683

 
2,974

Total non-performing loans
21,044

 
16,263

 
17,849

 
17,453

 
17,796

Other real estate owned
248

 
484

 
264

 
294

 
865

Total non-performing assets
$
21,292

 
$
16,747

 
$
18,113

 
$
17,747

 
$
18,661

Purchased with credit deterioration (“PCD”) loans (1)
$
61,694

 
$
59,783

 
$
13,265

 
$
13,281

 
$
13,432

Delinquent loans 30 to 89 days
$
13,640

 
$
48,905

 
$
14,798

 
$
19,905

 
$
20,029

Troubled debt restructurings:
 
 
 
 
 
 
 
 
 
Non-performing (included in total non-performing loans above)
$
6,189

 
$
6,249

 
$
6,566

 
$
6,152

 
$
6,815

Performing
16,365

 
16,102

 
18,042

 
18,977

 
19,314

Total troubled debt restructurings
$
22,554

 
$
22,351

 
$
24,608

 
$
25,129

 
$
26,129

Allowance for credit losses
$
38,509

 
$
29,635

 
$
16,852

 
$
16,636

 
$
16,135

Allowance for credit losses as a percent of total loans receivable (2)
0.46
%
 
0.37
%
 
0.27
%
 
0.27
%
 
0.27
%
Allowance for credit losses as a percent of total non-performing loans
182.99

 
182.22

 
94.41

 
95.32

 
90.67

Non-performing loans as a percent of total loans receivable
0.25

 
0.21

 
0.29

 
0.29

 
0.30

Non-performing assets as a percent of total assets
0.19

 
0.16

 
0.22

 
0.22

 
0.23

(1)
PCD loans are not included in non-performing loans or delinquent loans totals.
(2)
The loans acquired from Two River, Country Bank, Capital Bank, Sun, Ocean Shore, Cape, and Colonial American were recorded at fair value. The net credit mark on these loans, not reflected in the allowance for credit losses, was $35,439, $38,272, $30,260, $32,768, and $36,026 at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.

NET CHARGE-OFFS
For the Three Months Ended
 
 
June 30,
2020
 
March 31,
2020
 
December 31,
2019
 
September 30,
2019
 
June 30,
2019
 
Net recoveries (charge-offs):
 
 
 
 
 
 
 
 
 
 
Loan charge-offs
$
(169
)
 
$
(1,384
)
 
$
(445
)
 
$
(353
)
 
$
(1,138
)
 
Recoveries on loans
401

 
230

 
306

 
549

 
212

 
Net loan recoveries (charge-offs)
$
232

 
$
(1,154
)
(1) 
$
(139
)
 
$
196

 
$
(926
)
(1) 
Net loan charge-offs to average total loans
(annualized)
NM*

 
0.06
%
 
0.01
%
 
NM*

 
0.06
%
 
Net charge-off detail - recovery (loss):
 
 
 
 
 
 
 
 
 
 
Commercial
$
30

 
$
59

 
$
163

 
$
256

 
$
(58
)
 
Residential real estate
212

 
(1,112
)
 
(61
)
 
12

 
(728
)
 
Home equity loans and lines
(3
)
 
(36
)
 
(240
)
 
(10
)
 
(121
)
 
Other consumer
(7
)
 
(65
)
 
(1
)
 
(62
)
 
(19
)
 
Net loan recoveries (charge-offs)
$
232

 
$
(1,154
)
(1) 
$
(139
)
 
$
196

 
$
(926
)
(1) 
(1)
Included in net loan charge-offs for the three months ended March 31, 2020 and June 30, 2019 are $949 and $429, respectively, relating to under-performing loans sold.
* Not Meaningful


15


OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
 
For the Three Months Ended
 
June 30, 2020
 
March 31, 2020
 
June 30, 2019
(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
$
354,016

 
$
115

 
0.13
%
 
$
63,726

 
$
342

 
2.16
%
 
$
67,214

 
$
372

 
2.22
%
Securities (1)
1,130,779

 
7,415

 
2.64

 
1,186,535

 
7,921

 
2.68

 
1,080,690

 
7,121

 
2.64

Loans receivable, net (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
5,409,238

 
59,460

 
4.42

 
4,960,991

 
59,875

 
4.85

 
3,309,869

 
42,579

 
5.16

Residential
2,507,076

 
23,870

 
3.81

 
2,473,410

 
24,628

 
3.98

 
2,187,417

 
22,329

 
4.08

Home Equity
328,144

 
3,853

 
4.72

 
339,003

 
4,070

 
4.83

 
347,028

 
4,656

 
5.38

Other
76,382

 
1,164

 
6.13

 
87,478

 
1,371

 
6.30

 
113,153

 
1,353

 
4.80

Allowance for credit losses net of deferred loan fees
(25,218
)
 

 

 
(10,220
)
 

 

 
(9,155
)
 

 

Loans Receivable, net
8,295,622

 
88,347

 
4.28

 
7,850,662

 
89,944

 
4.61

 
5,948,312

 
70,917

 
4.78

Total interest-earning assets
9,780,417

 
95,877

 
3.94

 
9,100,923

 
98,207

 
4.34

 
7,096,216

 
78,410

 
4.43

Non-interest-earning assets
1,334,169

 
 
 
 
 
1,231,886

 
 
 
 
 
972,683

 
 
 
 
Total assets
$
11,114,586

 
 
 
 
 
$
10,332,809

 
 
 
 
 
$
8,068,899

 
 
 
 
Liabilities and Stockholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
$
2,966,631

 
4,800

 
0.65
%
 
$
2,807,793

 
5,132

 
0.74
%
 
$
2,504,541

 
4,240

 
0.68
%
Money market
652,485

 
705

 
0.43

 
614,062

 
1,040

 
0.68

 
631,297

 
1,358

 
0.86

Savings
1,445,953

 
414

 
0.12

 
1,403,338

 
1,555

 
0.45

 
915,701

 
301

 
0.13

Time deposits
1,623,890

 
6,386

 
1.58

 
1,459,348

 
6,209

 
1.71

 
934,470

 
3,863

 
1.66

Total
6,688,959

 
12,305

 
0.74

 
6,284,541

 
13,936

 
0.89

 
4,986,009

 
9,762

 
0.79

FHLB Advances
476,598

 
1,946

 
1.64

 
631,329

 
2,824

 
1.80

 
404,951

 
2,320

 
2.30

Securities sold under agreements to repurchase
131,382

 
138

 
0.42

 
82,105

 
95

 
0.47

 
62,243

 
64

 
0.41

Other borrowings
220,948

 
2,821

 
5.14

 
118,851

 
1,707

 
5.78

 
99,591

 
1,427

 
5.75

Total interest-bearing
liabilities
7,517,887

 
17,210

 
0.92

 
7,116,826

 
18,562

 
1.05

 
5,552,794

 
13,573

 
0.98

Non-interest-bearing deposits
2,018,044

 
 
 
 
 
1,687,582

 
 
 
 
 
1,302,147

 
 
 
 
Non-interest-bearing liabilities
124,997

 
 
 
 
 
113,477

 
 
 
 
 
82,793

 
 
 
 
Total liabilities
9,660,928

 
 
 
 
 
8,917,885

 
 
 
 
 
6,937,734

 
 
 
 
Stockholders’ equity
1,453,658

 
 
 
 
 
1,414,924

 
 
 
 
 
1,131,165

 
 
 
 
Total liabilities and equity
$
11,114,586

 
 
 
 
 
$
10,332,809

 
 
 
 
 
$
8,068,899

 
 
 
 
Net interest income
 
 
$
78,667

 
 
 
 
 
$
79,645

 
 
 
 
 
$
64,837

 
 
Net interest rate spread (3)
 
 
 
 
3.02
%
 
 
 
 
 
3.29
%
 
 
 
 
 
3.45
%
Net interest margin (4)
 
 
 
 
3.24
%
 
 
 
 
 
3.52
%
 
 
 
 
 
3.66
%
Total cost of deposits (including non-interest-bearing deposits)
 
 
 
 
0.57
%
 
 
 
 
 
0.70
%
 
 
 
 
 
0.62
%

16


 
 
 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended
 
June 30, 2020
 
June 30, 2019
(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
$
208,871

 
$
457

 
0.44
%
 
$
73,527

 
$
839

 
2.30
%
Securities (1)
1,158,657

 
15,336

 
2.66

 
1,073,957

 
14,075

 
2.64

Loans receivable, net (2)
 
 
 
 
 
 
 
 
 
 
 
Commercial
5,185,114

 
119,335

 
4.63

 
3,260,855

 
83,987

 
5.19

Residential
2,490,243

 
48,499

 
3.90

 
2,141,032

 
43,733

 
4.09

Home Equity
333,574

 
7,923

 
4.78

 
350,175

 
9,363

 
5.39

Other
81,930

 
2,534

 
6.22

 
116,153

 
2,835

 
4.92

Allowance for credit losses net of deferred loan fees
(17,720
)
 

 

 
(9,616
)
 

 

Loans Receivable, net
8,073,141

 
178,291

 
4.44

 
5,858,599

 
139,918

 
4.82

Total interest-earning assets
9,440,669

 
194,084

 
4.13

 
7,006,083

 
154,832

 
4.46

Non-interest-earning assets
1,283,029

 
 
 
 
 
948,658

 
 
 
 
Total assets
$
10,723,698

 
 
 
 
 
$
7,954,741

 
 
 
 
Liabilities and Stockholders’ Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
$
2,887,212

 
9,931

 
0.69
%
 
$
2,518,062

 
8,032

 
0.64
%
Money market
633,273

 
1,745

 
0.55

 
616,384

 
2,468

 
0.81

Savings
1,424,646

 
1,969

 
0.28

 
909,906

 
587

 
0.13

Time deposits
1,541,619

 
12,596

 
1.64

 
933,410

 
7,314

 
1.58

Total
6,486,750

 
26,241

 
0.81

 
4,977,762

 
18,401

 
0.75

FHLB Advances
553,963

 
4,770

 
1.73

 
372,499

 
4,160

 
2.25

Securities sold under agreements to repurchase
106,743

 
234

 
0.44

 
63,761

 
119

 
0.38

Other borrowings
169,900

 
4,527

 
5.36

 
99,569

 
2,927

 
5.93

Total interest-bearing liabilities
7,317,356

 
35,772

 
0.98

 
5,513,591

 
25,607

 
0.94

Non-interest-bearing deposits
1,852,813

 
 
 
 
 
1,257,041

 
 
 
 
Non-interest-bearing liabilities
119,237

 
 
 
 
 
69,443

 
 
 
 
Total liabilities
9,289,406

 
 
 
 
 
6,840,075

 
 
 
 
Stockholders’ equity
1,434,292

 
 
 
 
 
1,114,666

 
 
 
 
Total liabilities and equity
$
10,723,698

 
 
 
 
 
$
7,954,741

 
 
 
 
Net interest income
 
 
$
158,312

 
 
 
 
 
$
129,225

 
 
Net interest rate spread (3)
 
 
 
 
3.15
%
 
 
 
 
 
3.52
%
Net interest margin (4)
 
 
 
 
3.37
%
 
 
 
 
 
3.72
%
Total cost of deposits (including non-interest-bearing deposits)
 
 
 
 
0.63
%
 
 
 
 
 
0.60
%
(1)
Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost net of allowance for credit losses.
(2)
Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated credit 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.


17


OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
 
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
 
2020
 
2020
 
2019
 
2019
 
2019
 
 
 
 
 
 
 
 
 
 
 
Selected Financial Condition Data:
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
11,345,365

 
$
10,489,074

 
$
8,246,145

 
$
8,135,173

 
$
8,029,057

Debt securities available-for-sale, at estimated fair value
 
153,239

 
153,738

 
150,960

 
127,308

 
123,610

Debt securities held-to-maturity, net of allowance for credit losses
 
867,959

 
914,255

 
768,873

 
819,253

 
863,838

Equity investments, at estimated fair value
 
13,830

 
14,409

 
10,136

 
10,145

 
10,002

Restricted equity investments, at cost
 
68,091

 
81,005

 
62,356

 
62,095

 
59,425

Loans receivable, net of allowance for credit losses
 
8,335,480

 
7,913,541

 
6,207,680

 
6,081,938

 
5,943,930

Deposits
 
8,967,754

 
7,892,067

 
6,328,777

 
6,220,855

 
6,187,487

Federal Home Loan Bank advances
 
343,392

 
825,824

 
519,260

 
512,149

 
453,646

Securities sold under agreements to repurchase and other borrowings
 
399,661

 
210,388

 
168,540

 
161,734