| Exhibit 99.1
|
| 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. |
1
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,
7
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. |
