Parent-Only Financial Information

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

The following condensed statements of financial condition at December 31, 2021 and 2020 and condensed statements of operations and cash flows for the years ended December 31, 2021, 2020 and 2019 for OceanFirst Financial Corp. (parent company only) reflect the Company’s investment in its wholly-owned subsidiaries, the Bank, and OceanFirst Risk Management, Inc., using the equity method of accounting.

Condensed Statement of Financial Condition

(in thousands)


	December 31,
	2021		2020
Assets:
Cash and due from banks	$	8,803	$	7,187
Advances to Bank	63,480		101,304
Equity securities	87,622		93,207
ESOP loan receivable	9,231		8,071
Investment in subsidiaries	1,575,549		1,502,867
Other assets	2,781		10,180
Total assets	$	1,747,466	$	1,722,816
Liabilities and Stockholders’ Equity:
Borrowings	$	227,237	$	233,371
Other liabilities	3,676		5,315
Stockholders’ equity	1,516,553		1,484,130
Total liabilities and stockholders’ equity	$	1,747,466	$	1,722,816

Condensed Statements of Operations

(in thousands)


	For the Year Ended December 31,
	2021		2020		2019
Dividend income – subsidiary Bank	$	40,000	$	54,000	$	79,000
Interest and dividend income – debt and equity securities	2,070		949		63

Interest income – advances to subsidiary Bank	298		403		426
Interest income – ESOP loan receivable	289		301		321

Net gain on equity investments	7,499		20,460		—

Total income	50,156		76,113		79,810
Interest expense – borrowings	11,102		10,592		5,402

Operating expenses	3,307		3,382		2,686
Income before income taxes and undistributed earnings of subsidiary Bank	35,747		62,139		71,722
Benefit (Provision) for income taxes	1,018		(2,901)		924
Income before undistributed earnings of subsidiary Bank	36,765		59,238		72,646
Undistributed earnings of subsidiary Bank	73,311		4,071		15,928
Net income	$	110,076	$	63,309	$	88,574

Condensed Statements of Cash Flows

(in thousands)


	For the Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net income	$	110,076	$	63,309	$	88,574
Decrease (increase) in advances to subsidiary Bank	37,824		(73,426)		(13,852)
Undistributed earnings of subsidiary Bank	(73,311)		(4,071)		(15,928)
Net gain on equity investments	(7,499)		(20,460)		—
Net premium amortization in excess of discount accretion on securities	755		—		—
Amortization of deferred costs on borrowings	824		576		261
Net amortization of purchase accounting adjustments	542		638		453
Change in other assets and other liabilities	7,359		648		(184)
Net cash provided by (used in) operating activities	76,570		(32,786)		59,324
Cash flows from investing activities:
Proceeds from sales of equity investments	98,791		15,339		—
Purchase of equity investments	(86,462)		(95,228)		—
Increase in ESOP loan receivable	(3,200)		—		—
Repayments on ESOP loan receivable	2,040		1,200		1,160

Net cash provided by (used in) investing activities	11,169		(78,689)		1,160
Cash flows from financing activities:
Net proceeds from issuance of subordinated notes	—		122,180		—
Repayments of other borrowings	(7,500)		(7,999)		—
Dividends paid	(44,510)		(42,917)		(34,241)
Purchase of treasury stock	(36,059)		(14,814)		(26,066)
Net proceeds from the issuance of preferred stock	—		55,529		—
Exercise of stock options	1,946		1,241		1,335
Net cash provided by (used in) financing activities	(86,123)		113,220		(58,972)
Net increase in cash and due from banks	1,616		1,745		1,512
Cash and due from banks at beginning of year	7,187		5,442		3,930
Cash and due from banks at end of year	$	8,803	$	7,187	$	5,442