Last10K.com

Oceanfirst Financial Corp (OCFC) SEC Filing 8-K Material Event for the period ending Thursday, January 27, 2022

Oceanfirst Financial Corp

CIK: 1004702 Ticker: OCFC

oceanfirstpressreleasimage.jpg
Press Release

Company Contact:
Exhibit 99.1
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 QUARTERLY AND ANNUAL
EARNINGS AND FINANCIAL RESULTS


    RED BANK, NEW JERSEY, JANUARY 27, 2022…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $21.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2021, as compared to $32.1 million, or $0.54 per diluted share, for the corresponding prior year period. For the year ended December 31, 2021, the Company reported net income available to common stockholders of $106.1 million, or $1.78 per diluted share, as compared to $61.2 million, or $1.02 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information regarding the metrics):
For the Three Months Ended,For the Years Ended,
Performance Ratios (Annualized):December 31,September 30,December 31,December 31,December 31,
20212021202020212020
Return on average assets 0.72 %0.78 %1.09 %0.91 %0.55 %
Return on average stockholders’ equity5.65 6.05 8.65 7.02 4.20 
Return on average tangible stockholders’ equity (a)
8.59 9.20 13.43 10.73 6.59 
Efficiency ratio72.04 67.43 59.86 63.50 63.70 
Net interest margin2.99 2.93 2.97 2.93 3.16 
(a) Return on average tangible stockholders’ equity, a non-GAAP (“generally accepted accounting principles”) measure, excludes the impact of intangible assets and goodwill from both assets and stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.



Core earnings1 for the quarter and year ended December 31, 2021 amounted to $28.5 million and $111.2 million, respectively, or $0.48 and $1.86 per diluted share, respectively. Non-core operations had an adverse impact, net of tax, of $6.8 million and $5.1 million for the quarter and year ended December 31, 2021, respectively.
For the Three Months Ended,For the Years Ended,
December 31,September 30,December 31,December 31,December 31,
Core Ratios1 (Annualized):
20212021202020212020
Return on average assets 0.95 %0.90 %0.78 %0.95 %0.64 %
Return on average tangible stockholders’ equity11.30 10.62 9.71 11.25 7.77 
Efficiency ratio62.57 62.22 59.69 60.84 57.81 

    Key developments for the recent quarter are described below:
Loan Growth: Total loan growth for the quarter was $441.0 million. Excluding the impact of Paycheck Protection Program (“PPP”) loans of $29.6 million, total loan growth was $470.6 million for the quarter, reflecting record loan originations of $989.0 million and the purchase of a residential loan pool of $82.2 million. The committed loan pipeline remains strong at a record level of $671.0 million.
Strengthening Margin: Net interest margin increased to 2.99%, from 2.93% in the prior linked quarter, largely driven by the reduction in excess liquidity to fund loan growth. Cost of deposits decreased two basis points to 0.20%, from 0.22% for the prior linked quarter, reflecting improved deposit quality.
1 Core earnings, a non-GAAP measure, and ratios derived from core earnings, for the periods presented, excludes merger related expenses, branch consolidation expenses, net loss (gain) on equity investments, Federal Home Loan Bank (“FHLB”) advance prepayment fees, gain on sale of Paycheck Protection Program (“PPP”) loans, the opening credit loss expense under the Current Expected Credit Loss (“CECL”) model related to the acquisitions of Two River Bancorp (“Two River”) and Country Bank Holding Company, Inc. (“Country Bank”) and the income tax effect of these items, (collectively referred to as “non-core” operations). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.
2


Branch Consolidations: The Company consolidated nine branches during the fourth quarter for a total of 67 branches consolidated. The branch consolidation expense was $7.3 million for the quarter ended December 31, 2021. Average deposits per branch totaled $207.1 million as of December 31, 2021. Additionally, the Company expects to consolidate another 10 branches in the first quarter of 2022.
Subordinated Debt:
The Company has provided notice to its trustee that it will redeem $35.0 million of subordinated debt due September 30, 2026 as of March 30, 2022. The debt currently carries an interest rate of 4.14% based on a floating rate of three months LIBOR plus 392 basis points.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “During the fourth quarter, OceanFirst delivered exceptional loan growth with $989.0 million of loan originations while maintaining a robust committed pipeline of $671.0 million. This represents strong results from all of our commercial banking teams including our newest groups in Boston and Baltimore, which will add important momentum into 2022.” Mr. Maher added, “All of us at OceanFirst are proud to acknowledge our continued commitment to providing shareholder value as our Board of Directors has declared the Company’s 100th consecutive quarterly cash dividend for common stockholders.”
The Company’s Board of Directors declared its 100th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.17 per share will be paid on February 18, 2022 to common stockholders of record on February 7, 2022. The Board previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 15, 2022 to preferred stockholders of record on January 31, 2022.
3


Results of Operations
Net income for the quarter ended December 31, 2021 was adversely impacted by non-core operations of $6.8 million, net of tax, while net income for the quarter ended December 31, 2020 was favorably impacted by non-core operations of $8.9 million, net of tax. Net income for the years ended December 31, 2021 and 2020 was adversely impacted by non-core operations of $5.1 million, net of tax, and $11.0 million, net of tax, respectively. Core earnings for the quarter ended December 31, 2021 were $28.5 million, or $0.48 per diluted share, representing an increase from core earnings of $23.2 million, or $0.39 per diluted share, for the corresponding prior year period. Core earnings for the year ended December 31, 2021 were $111.2 million, or $1.86 per diluted share, an increase from $72.2 million, or $1.20 per diluted share, for the prior year. Core earnings for the quarter ended December 31, 2021 increased from $26.7 million, or $0.45 per diluted share, for the prior linked quarter, which was adversely impacted by non-core operations of $3.6 million, net of tax.
Net Interest Income and Margin
Net interest income for the quarter ended December 31, 2021 increased to $80.6 million, as compared to $77.9 million for the corresponding prior year period. Net interest income for the year ended December 31, 2021 decreased to $305.3 million, as compared to $313.0 million for the prior year, as a result of the lower interest rate environment. Average interest-earning assets increased by $280.8 million for the quarter ended December 31, 2021, as compared to the corresponding prior year period, due to securities and loan growth, which was partly funded by the redeployment of excess cash. Average interest-earning assets increased by $512.9 million for the year ended December 31, 2021, as compared to the prior year, primarily concentrated in excess balance sheet liquidity and increased securities. Average loans receivable, net of allowance for loan credit losses, increased by $305.0 million and decreased by $201.0 million for the quarter and year ended December 31, 2021, respectively, as compared to the same prior year periods. Loans receivable, net was $8.58 billion at
4


December 31, 2021, as compared to an average balance of $8.30 billion for the quarter ended December 31, 2021.
Net interest margin for the quarter and year ended December 31, 2021 increased to 2.99% and decreased to 2.93%, respectively, from 2.97% and 3.16% for the same prior year periods, respectively. The net interest margin expansion for the quarter ended December 31, 2021 was primarily attributable to the decrease in excess balance sheet liquidity used to fund securities and loan growth. The net interest margin compression for the year ended December 31, 2021 was primarily due to the excess balance sheet liquidity and the lower interest rate environment. For the quarter and year ended December 31, 2021, the cost of average interest-bearing liabilities decreased to 0.40% and 0.49%, respectively, from 0.74% and 0.88% in the corresponding prior year periods, respectively, as a result of the lower interest rate environment. For the quarter and year ended December 31, 2021, the total cost of deposits (including non-interest bearing deposits) was 0.20% and 0.26%, respectively, as compared to 0.45% and 0.55% in the same prior year periods, respectively.
Net interest income for the quarter ended December 31, 2021 increased by $3.5 million, as compared to the prior linked quarter, and net interest margin increased to 2.99%, compared to 2.93% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees of 0.18% for each of the quarters ended December 31, 2021 and September 30, 2021, net interest margin increased to 2.81%, from 2.75%. The yield on average interest-earning assets increased to 3.28%, from 3.24% in the prior linked quarter. The total cost of average interest-bearing liabilities was 0.40% for the quarter ended December 31, 2021, as compared to 0.44% in the prior linked quarter, partly due to maturities of higher-yielding time deposits.
Benefit/Provision for Credit Loss
For the quarter and year ended December 31, 2021, the credit loss benefit was $1.6 million and $11.8 million, respectively, as compared to credit loss expense of $4.1 million and $59.4 million, respectively, for the corresponding prior year periods and a credit loss benefit of $3.2 million in the
5


prior linked quarter. The credit loss benefit for the quarter and year ended December 31, 2021 and the quarter ended September 30, 2021 was influenced by positive trends in the Bank’s asset quality combined with stabilizing trends in economic forecasts, including strong employment levels and modest GDP growth, partly offset by the continuing economic uncertainty related to COVID-19 variants.
Net loan recoveries were $19,000 and $461,000 for the quarter and year ended December 31, 2021, respectively, as compared to net loan charge-offs of $2.9 million and $18.9 million, respectively, for the corresponding prior year periods and net loan recoveries of $386,000 in the prior linked quarter. The quarter ended December 31, 2020 included $2.3 million of charge-offs related to the sale of under-performing residential and consumer loans. The year ended December 31, 2020 included $14.6 million of charge-offs related to the sale of higher risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. Non-performing loans totaled $18.9 million at December 31, 2021, as compared to $23.3 million at September 30, 2021 and $36.4 million at December 31, 2020.
Non-interest Income
    For the quarter and year ended December 31, 2021, other income decreased to $9.4 million and $51.9 million, respectively, as compared to $40.6 million and $73.9 million, respectively, for the corresponding prior year periods. Other income for the quarter and year ended December 31, 2021 included net losses of $1.3 million and net gains of $7.1 million, respectively, related to non-core operations. Other income for the quarter and year ended December 31, 2020 included $29.6 million and $26.0 million, respectively, of net gains related to non-core operations. The net gain on equity investments was primarily a result of several programs implemented by the Company in 2020 to invest excess liquidity in high quality equity securities with attractive dividend yields which were subsequently sold in 2020 and 2021.
6


Excluding non-core operations, the decrease in other income of $370,000 for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to decreases in net gain on sale of loans of $1.2 million and fees and service charges of $636,000, partly offset by an increase in commercial loan swap income of $1.2 million.
Excluding non-core operations, the decrease in other income of $3.1 million for the year ended December 31, 2021, as compared to the prior year, was primarily due to decreases in commercial loan swap income of $4.0 million and fees and service charges of $2.0 million, partly offset by increases in bankcard services of $1.9 million, due to lower card activity in the prior year period as a result of the pandemic, and income from bank owned life insurance of $408,000.
    Excluding non-core operations, other income for the quarter ended December 31, 2021 increased $313,000, as compared to the prior linked quarter, primarily due to an increase in income from bank owned life insurance of $421,000.
Non-interest Expense
Operating expenses decreased to $64.8 million and $226.9 million for the quarter and year ended December 31, 2021, respectively, as compared to $70.9 million and $246.4 million, respectively, for the same prior year periods. Operating expenses for the quarter and year ended December 31, 2021 included $7.7 million and $13.8 million, respectively, of net expenses related to non-core operations. Operating expenses for the quarter and year ended December 31, 2020 included $17.9 million and $37.8 million, respectively, of net expenses related to non-core operations.
Excluding non-core operations, the $4.0 million increase in operating expenses for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to increases in compensation and benefits expense of $3.7 million, and data processing expense of $3.2 million, partly offset by decreases in professional fees of $1.2 million, other operating expense of $573,000, and equipment expense of $503,000.
7


Excluding non-core operations, the $4.4 million increase in operating expenses for the year ended December 31, 2021, as compared to the prior year, was primarily due to increases in compensation and benefits expense of $5.9 million, primarily related to higher benefit costs, data processing expense of $4.1 million, and federal deposit insurance and regulatory assessments of $1.3 million, partly offset by decreases in equipment expense of $2.3 million, professional fees of $1.2 million, other operating expense of $1.0 million, marketing expense of $948,000, and amortization of core deposit intangible of $733,000.
    Excluding non-core operations, operating expenses for the quarter ended December 31, 2021 increased $2.7 million, as compared to the prior linked quarter. The change was primarily due to an increase in data processing expense of $2.4 million.
Income Tax Expense
    The provision for income taxes was $4.1 million and $32.2 million for the quarter and year ended December 31, 2021, respectively, as compared to $10.4 million and $17.7 million, respectively, for the same prior year periods and $7.4 million for the prior linked quarter. The effective tax rate was 15.3% and 22.6% for the quarter and year ended December 31, 2021, respectively, as compared to 24.0% and 21.9%, respectively, for the same prior year periods and 23.3% for the prior linked quarter. The lower effective tax rate for the quarter ended December 31, 2021, as compared to the corresponding prior year periods and prior linked quarter, was primarily due to allocation of taxable income to jurisdictions other than New Jersey, which is tied to our commercial banking strategy, and other tax optimization efforts.
Financial Condition
    Total assets increased by $291.3 million to $11.74 billion at December 31, 2021, from $11.45 billion at December 31, 2020. Cash and due from banks decreased by $1.07 billion to $204.9 million at December 31, 2021, from $1.27 billion at December 31, 2020, as excess liquidity was primarily used to fund loan growth and purchase securities. Total debt securities increased by $586.9 million at
8


December 31, 2021, as compared to December 31, 2020. Total loans, excluding PPP loans of $22.9 million and $95.4 million at December 31, 2021 and December 31, 2020, respectively, increased by $939.2 million, to $8.60 billion at December 31, 2021, from $7.66 billion at December 31, 2020, primarily due to loan originations and purchases of residential real estate loan pools.
    Deposits increased by $305.2 million, to $9.73 billion at December 31, 2021, from $9.43 billion at December 31, 2020. Total deposits, excluding time deposits of $775.0 million at December 31, 2021 and $1.37 billion at December 31, 2020, increased by $903.0 million to $8.96 billion at December 31, 2021, from $8.05 billion at December 31, 2020 as a result of the Company’s efforts to improve the quality of deposits. The loans-to-deposits ratio at December 31, 2021 was 88.6%, as compared to 82.3% at December 31, 2020.
    Stockholders’ equity increased to $1.52 billion at December 31, 2021, as compared to $1.48 billion at December 31, 2020. On June 25, 2021, the Company announced the authorization by the Board of Directors of the 2021 Stock Repurchase Program to repurchase up to an additional 3.0 million shares, which was approximately 5% of the Company’s outstanding common stock. For the year ended December 31, 2021, the Company repurchased 1,711,484 shares under its stock repurchase programs, at a weighted average cost of $21.07, and there were 3,307,661 shares available for repurchase at December 31, 2021 under the existing stock repurchase programs. Stockholders’ equity per common share increased to $25.63 at December 31, 2021, as compared to $24.57 at December 31, 2020. Tangible common equity per common share increased by 6.3%, to $15.93 at December 31, 2021, as compared to $14.98 at December 31, 2020.
9


Asset Quality
    The Company’s non-performing loans decreased to $18.9 million at December 31, 2021, as compared to $36.4 million at December 31, 2020. Non-performing loans at December 31, 2021 do not include $41.8 million of purchased with credit deterioration (“PCD”) loans from prior bank acquisitions. The allowance for loan credit losses as a percentage of total non-performing loans was 257.8% at December 31, 2021, as compared to 166.8% at December 31, 2020. The Company’s level of 30 to 89 days delinquent loans, excluding non-performing and PCD loans, improved to $13.5 million at December 31, 2021, from $34.7 million at December 31, 2020. The Company’s proactive management of higher risk loans in 2020 has proven valuable, as credit trends have steadily improved throughout 2021.
The Company’s allowance for loan credit losses was 0.57% of total loans at December 31, 2021, as compared to 0.78% at December 31, 2020. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $67.8 million, or 0.79% of total loans, at December 31, 2021.
10


Explanation of Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and reporting equity and asset amounts excluding intangible assets and goodwill, 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. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Wednesday, May 25, 2022 at 9:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is April 6, 2022. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.
Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, January 28, 2022 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-844-200-6205, toll free, using the access code 733688. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 549028, from one hour after the end of the call until April 28, 2022. The conference call will also be available (listen-only) via the Internet by accessing the Company’s Web address: www.oceanfirst.com - Investor Relations. The webcast will be available for 90 days.
* * *
11


    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.7 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, Washington D.C and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to 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 or any other 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, 2020, 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.
12



OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
December 31, 2021September 30, 2021December 31, 2020
(Unaudited)(Unaudited)
Assets
Cash and due from banks
$204,949 $981,126 $1,272,134 
Debt securities available-for-sale, at estimated fair value
568,255 314,620 183,302 
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,467 at December 31, 2021, $1,503 at September 30, 2021, and $1,715 at December 31, 2020 (estimated fair value of $1,152,744 at December 31, 2021, $1,143,381 at September 30, 2021, and $968,466 at December 31, 2020)
1,139,193 1,125,382 937,253 
Equity investments101,155 101,314 107,079 
Restricted equity investments, at cost
53,195 53,017 51,705 
Loans receivable, net of allowance for loan credit losses of $48,850 at December 31, 2021, $50,153 at September 30, 2021, and $60,735 at December 31, 2020
8,583,352 8,139,961 7,704,857 
Loans held-for-sale
— 13,428 45,524 
Interest and dividends receivable
32,606 32,512 35,269 
Other real estate owned
106 106 106 
Premises and equipment, net
125,828 123,669 107,094 
Bank owned life insurance259,207 260,072 265,253 
Assets held for sale
6,229 4,613 5,782 
Goodwill
500,319 500,319 500,319 
Core deposit intangible
18,215 19,558 23,668 
Other assets147,007 159,991 208,968 
Total assets
$11,739,616 $11,829,688 $11,448,313 
Liabilities and Stockholders’ Equity
Deposits
$9,732,816 $9,774,097 $9,427,616 
Securities sold under agreements to repurchase with retail customers
118,769 143,292 128,454 
Other borrowings
229,141 228,887 235,471 
Advances by borrowers for taxes and insurance
20,305 22,214 17,296 
Other liabilities
122,032 147,949 155,346 
Total liabilities
10,223,063 10,316,439 9,964,183 
Total stockholders’ equity
1,516,553 1,513,249 1,484,130 
Total liabilities and stockholders’ equity
$11,739,616 $11,829,688 $11,448,313 
13



OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Year Ended
December 31,September 30,December 31,December 31,
20212021202020212020
|--------------------- (Unaudited) ---------------------|(Unaudited)
Interest income:
Loans$81,392 $78,889 $84,997 $315,237 $349,221 
Debt securities5,654 5,040 5,539 22,033 24,116 
Equity investments and other1,411 1,491 2,026 4,822 6,271 
Total interest income88,457 85,420 92,562 342,092 379,608 
Interest expense:
Deposits5,010 5,379 10,679 25,210 48,290 
Borrowed funds2,861 2,909 4,032 11,544 18,367 
Total interest expense7,871 8,288 14,711 36,754 66,657 
Net interest income80,586 77,132 77,851 305,338 312,951 
Credit loss (benefit) expense(1,573)(3,179)4,072 (11,832)59,404 
Net interest income after credit loss (benefit) expense82,159 80,311 73,779 317,170 253,547 
Other income:
Bankcard services revenue3,308 3,409 3,098 13,360 11,417 
Trust and asset management revenue562 584 492 2,336 2,052 
Fees and service charges3,314 2,973 3,950 13,833 15,808 
Net gain (loss) on sales of loans(15)6,348 3,186 8,278 
Net (loss) gain on equity investments(1,252)(466)24,487 7,145 21,214 
Net (loss) gain from other real estate operations(3)(3)23 (15)35 
Income from bank owned life insurance2,061 1,640 1,798 6,832 6,424 
Commercial loan swap income1,323 1,588 116 4,095 8,080 
Other91 173 308 1,159 618 
Total other income9,410 9,883 40,620 51,931 73,926 
Operating expenses:
Compensation and employee benefits31,006 30,730 27,323 120,014 114,155 
Occupancy5,101 5,005 4,968 20,481 20,782 
Equipment1,435 1,124 1,938 5,443 7,769 
Marketing614 496 632 2,169 3,117 
Federal deposit insurance and regulatory assessments1,733 1,459 1,859 6,155 4,871 
Data processing7,774 5,363 4,624 21,570 17,467 
Check card processing1,170 1,337 1,507 5,182 5,458 
Professional fees2,726 3,089 3,908 11,043 12,247 
FHLB advance prepayment fees— — 13,333 — 14,257 
Amortization of core deposit intangible1,343 1,354 1,526 5,453 6,186 
Branch consolidation expense7,286 4,014 3,336 12,337 7,623 
Merger related expenses451 225 1,194 1,503 15,947 
Other operating expense4,195 4,477 4,768 15,510 16,552 
Total operating expenses64,834 58,673 70,916 226,860 246,431 
Income before provision for income taxes26,735 31,521 43,483 142,241 81,042 
Provision for income taxes4,078 7,354 10,419 32,165 17,733 
Net income22,657 24,167 33,064 110,076 63,309 
Dividends on preferred shares1,004 1,004 1,004 4,016 2,097 
Net income available to common stockholders$21,653 $23,163 $32,060 $106,060 $61,212 
Basic earnings per share$0.37 $0.40 $0.53 $1.79 $1.02 
Diluted earnings per share$0.37 $0.39 $0.54 $1.78 $1.02 
Average basic shares outstanding58,801 59,311 59,961 59,406 59,919 
Average diluted shares outstanding59,044 59,515 60,057 59,649 60,072 

14



OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Commercial:
Commercial and industrial$449,224 $457,674 $474,919 $498,245 $470,656 
Commercial real estate - owner-occupied1,055,065 1,123,973 1,045,514 1,066,351 1,145,065 
Commercial real estate - investor4,378,061 3,922,983 3,836,230 3,804,351 3,491,464 
Total commercial5,882,350 5,504,630 5,356,663 5,368,947 5,107,185 
Consumer:
Residential real estate2,479,701 2,401,240 2,168,545 2,189,348 2,309,459 
Home equity loans and lines and other consumer260,819 275,962 295,582 314,242 339,462 
Total consumer2,740,520 2,677,202 2,464,127 2,503,590 2,648,921 
Total loans8,622,870 8,181,832 7,820,790 7,872,537 7,756,106 
Deferred origination costs (fees), net9,332 8,282 7,437 8,029 9,486 
Allowance for loan credit losses(48,850)(50,153)(53,876)(59,976)(60,735)
Loans receivable, net$8,583,352 $8,139,961 $7,774,351 $7,820,590 $7,704,857 
Mortgage loans serviced for others$60,447 $64,840 $68,778 $74,037 $95,789 
At December 31, 2021 Average Yield
Loan pipeline (1):
Commercial3.65 %$539,426 $482,942 $463,388 $154,946 $210,024 
Residential real estate
3.03 123,211 160,070 153,798 178,352 151,152 
Home equity loans and lines4.41 8,381 8,420 11,369 11,031 6,630 
Total3.55 %$671,018 $651,432 $628,555 $344,329 $367,806 
For the Three Months Ended
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Average Yield
Loan originations:
Commercial3.28 %$780,464 $585,667 $259,163 
(2)
$547,591 
(2)
$173,715 
Residential real estate3.01 195,942 
(3)
174,365 
(3)
173,354 189,942 222,780 
Home equity loans and lines4.05 12,552 11,782 14,870 10,278 13,435 
Total3.24 %$988,958 $771,814 $447,387 $747,811 $409,930 
Loans sold$649 $1,756 $29,556 $67,500 $56,126 
(4)
(1)Loan pipeline includes loans approved but not funded.
(2)Excludes loans originated through the PPP of $13 million and $60 million for the three months ended June 30, 2021 and March 31, 2021, respectively.
(3)Excludes residential real estate loan pool purchases of $82.2 million and $219.7 million for the three months ended December 31, 2021 and September 30, 2021, respectively.
(4)Excludes the sale of PPP loans of $298.1 million, higher risk commercial loans of $64.8 million, net of charge-offs and under-performing residential and home equity loans and lines of $10.5 million, net of charge-offs, for the three months ended December 31, 2020.

DEPOSITSAt
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Type of Account
Non-interest-bearing$2,412,056 $2,467,952 $2,505,355 $2,417,935 $2,133,195 
Interest-bearing checking4,201,736 4,013,565 3,628,741 3,623,132 3,646,866 
Money market736,090 816,691 734,320 782,459 783,521 
Savings1,607,933 1,620,447 1,590,441 1,568,528 1,491,251 
Time deposits775,001 855,442 956,429 1,110,758 1,372,783 
Total deposits$9,732,816 $9,774,097 $9,415,286 $9,502,812 $9,427,616 
15



OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITYDecember 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Non-performing loans:
Commercial and industrial
$299 $354 $1,566 $1,616 $1,551 
Commercial real estate - owner-occupied
8,687 8,997 11,527 11,676 13,054 
Commercial real estate - investor
2,021 6,904 10,549 12,366 10,660 
Residential real estate
6,094 5,484 6,114 6,398 8,642 
Home equity loans and lines and other consumer1,847 1,605 1,924 2,072 2,503 
Total non-performing loans18,948 23,344 31,680 34,128 36,410 
Other real estate owned
106 106 106 106 106 
Total non-performing assets
$19,054 $23,450 $31,786 $34,234 $36,516 
PCD loans (1)
$41,817 $41,372 $40,064 $44,421 $48,488 
Delinquent loans 30 to 89 days
$13,546 $6,647 $5,313 $16,477 $34,683 
Troubled debt restructurings:
Non-performing (included in total non-performing loans above)
$10,974 $9,617 $9,803 $4,785 $5,158 
Performing
12,320 9,661 10,311 11,466 12,009 
Total troubled debt restructurings
$23,294 $19,278 $20,114 $16,251 $17,167 
Allowance for loan credit losses$48,850 $50,153 $53,876 $59,976 $60,735 
Allowance for loan credit losses as a percent of total loans receivable (2)
0.57 %0.61 %0.69 %0.76 %0.78 %
Allowance for loan credit losses as a percent of total non-performing loans (2)
257.81 214.84 170.06 175.74 166.81 
Non-performing loans as a percent of total loans receivable0.22 0.29 0.41 0.43 0.47 
Non-performing assets as a percent of total assets
0.16 0.20 0.28 0.30 0.32 
(1)PCD loans are not included in non-performing loans, troubled debt restructurings or delinquent loans totals as such loans are marked to fair value at the time of acquisition.
(2)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $18.9 million, $21.3 million, $23.6 million, $25.7 million, and $28.0 million at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

NET LOAN RECOVERIES (CHARGE-OFFS)For the Three Months Ended
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Net loan recoveries (charge-offs):
Loan charge-offs$(92)$(163)$(420)$(356)$(3,220)
Recoveries on loans111 549 196 636 278 
Net loan recoveries (charge-offs)$19 $386 $(224)$280 $(2,942)
(1)
Net loan recoveries (charge-offs) to average total loans (annualized)NM*NM*0.01 %NM*0.15 %
Net loan recoveries (charge-offs) detail:
Commercial$(24)$(33)$(304)$126 $(775)
Residential real estate21 280 — (203)(1,731)
Home equity loans and lines and other consumer22 139 80 357 (436)
Net loan recoveries (charge-offs) $19 $386 $(224)$280 $(2,942)
(1)
(1)Included in net loan charge-offs for the three months ended December 31, 2020 was $2.3 million related to under-performing residential and consumer loans sold.
* Not meaningful


16



OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
 For the Three Months Ended
 December 31, 2021September 30, 2021December 31, 2020
(dollars in thousands)Average
Balance
Interest
Average
Yield/
Cost (1)
Average
Balance
Interest
Average
Yield/
Cost (1)
Average
Balance
Interest
Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$698,652 $300 0.17 %$1,053,797 $441 0.17 %$1,223,472 $341 0.11 %
Securities (2)
1,710,143 6,765 1.57 1,542,630 6,090 1.57 1,209,543 7,224 2.38 
Loans receivable, net (3)
Commercial5,635,642 57,829 4.07 5,361,472 55,387 4.10 5,271,633 58,776 4.44 
Residential real estate2,430,635 20,454 3.37 2,260,673 20,076 3.55 2,420,494 21,530 3.56 
Home equity loans and lines and other consumer273,007 3,109 4.52 289,011 3,426 4.70 351,920 4,691 5.30 
Allowance for loan credit losses, net of deferred loan costs and fees(41,889)— — (46,436)— — (51,682)— — 
Loans receivable, net8,297,395 81,392 3.89 7,864,720 78,889 3.98 7,992,365 84,997 4.23 
Total interest-earning assets10,706,190 88,457 3.28 10,461,147 85,420 3.24 10,425,380 92,562 3.53 
Non-interest-earning assets1,247,420 1,276,890 1,322,112 
Total assets$11,953,610 $11,738,037 $11,747,492 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$4,249,001 2,851 0.27 %$3,841,475 2,854 0.29 %$3,601,814 4,836 0.53 %
Money market790,471 282 0.14 767,854 245 0.13 766,866 586 0.30 
Savings1,611,522 141 0.03 1,609,197 146 0.04 1,489,853 240 0.06 
Time deposits819,025 1,736 0.84 904,384 2,134 0.94 1,437,770 5,017 1.39 
Total7,470,019 5,010 0.27 7,122,910 5,379 0.30 7,296,303 10,679 0.58 
FHLB advances— — — — — — 204,880 779 1.51 
Securities sold under agreements to repurchase132,520 50 0.15 142,494 51 0.14 143,385 154 0.43 
Other borrowings228,980 2,811 4.87 228,695 2,858 4.96 242,030 3,099 5.09 
Total borrowings361,500 2,861 3.14 371,189 2,909 3.11 590,295 4,032 2.72 
Total interest-bearing liabilities7,831,519 7,871 0.40 7,494,099 8,288 0.44 7,886,598 14,711 0.74 
Non-interest-bearing deposits2,467,588 2,576,123 2,209,532 
Non-interest-bearing liabilities134,527 148,327 176,274 
Total liabilities10,433,634 10,218,549 10,272,404 
Stockholders’ equity
1,519,976 1,519,488 1,475,088 
Total liabilities and equity$11,953,610 $11,738,037 $11,747,492 
Net interest income$80,586 $77,132 $77,851 
Net interest rate spread (4)
2.88 %2.80 %2.79 %
Net interest margin (5)
2.99 %2.93 %2.97 %
Total cost of deposits (including non-interest-bearing deposits)0.20 %0.22 %0.45 %

(footnotes on following page)





17





(continued)
 For the Year Ended
 December 31, 2021December 31, 2020
(dollars in thousands)Average
Balance
InterestAverage
Yield/
Cost
Average
Balance
InterestAverage
Yield/
Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$969,982 $1,258 0.13 %$613,971 $1,034 0.17 %
Securities (2)
1,517,649 25,597 1.69 1,159,764 29,353 2.53 
Loans receivable, net (3)
Commercial5,362,265 221,144 4.12 5,299,813 236,749 4.47 
Residential real estate2,309,790 79,696 3.45 2,465,740 93,120 3.78 
Home equity loans and lines and other consumer298,193 14,397 4.83 390,421 19,352 4.96 
Allowance for loan credit losses, net of deferred loan costs and fees(48,637)— — (33,343)— — 
Loans receivable, net7,921,611 315,237 3.98 8,122,631 349,221 4.30 
Total interest-earning assets10,409,242 342,092 3.29 9,896,366 379,608 3.84 
Non-interest-earning assets1,260,079 1,310,474 
Total assets$11,669,321 $11,206,840 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,878,465 13,400 0.35 %$3,168,889 19,395 0.61 %
Money market769,157 1,105 0.14 677,554 2,902 0.43 
Savings1,581,472 631 0.04 1,449,982 2,505 0.17 
Time deposits985,328 10,074 1.02 1,531,857 23,488 1.53 
Total7,214,422 25,210 0.35 6,828,282 48,290 0.71 
FHLB advances— — — 413,290 7,018 1.70 
Securities sold under agreements to repurchase134,939 253 0.19 125,500 562 0.45 
Other borrowings228,600 11,291 4.94 207,386 10,787 5.20 
Total borrowings363,539 11,544 3.18 746,176 18,367 2.46 
Total interest-bearing liabilities7,577,961 36,754 0.49 7,574,458 66,657 0.88 
Non-interest-bearing deposits2,429,547 2,031,100 
Non-interest-bearing liabilities151,950 144,571 
Total liabilities10,159,458 9,750,129 
Stockholders’ equity
1,509,863 1,456,711 
Total liabilities and equity$11,669,321 $11,206,840 
Net interest income$305,338 $312,951 
Net interest rate spread (4)
2.80 %2.96 %
Net interest margin (5)
2.93 %3.16 %
Total cost of deposits (including non-interest-bearing deposits)0.26 %0.55 %
(1)    Average yields and costs are annualized.
(2)    Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3)    Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4)    Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5)    Net interest margin represents net interest income divided by average interest-earning assets.

18



OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Selected Financial Condition Data:
Total assets$11,739,616 $11,829,688 $11,483,901 $11,577,472 $11,448,313 
Debt securities available-for-sale, at estimated fair value568,255 314,620 249,330 268,511 183,302 
Debt securities held-to-maturity, net of allowance for securities credit losses1,139,193 1,125,382 1,146,735 1,082,326 937,253 
Equity investments101,155 101,314 90,917 50,159 107,079 
Restricted equity investments, at cost53,195 53,017 52,519 52,199 51,705 
Loans receivable, net of allowance for loan credit losses8,583,352 8,139,961 7,774,351 7,820,590 7,704,857 
Deposits9,732,816 9,774,097 9,415,286 9,502,812 9,427,616 
Securities sold under agreements to repurchase and other borrowings347,910 372,179 370,039 362,641 363,925 
Stockholders’ equity1,516,553 1,513,249 1,508,789 1,498,719 1,484,130 

For the Three Months Ended
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Selected Operating Data:
Interest income$88,457 $85,420 $83,341 $84,874 $92,562 
Interest expense7,871 8,288 9,325 11,270 14,711 
Net interest income80,586 77,132 74,016 73,604 77,851 
Credit loss (benefit) expense(1,573)(3,179)(6,460)(620)4,072 
Net interest income after credit loss (benefit) expense82,159 80,311 80,476 74,224 73,779 
Other income (excluding net (loss) gain on equity investments and gain on sale of PPP loans)10,662 10,349 11,227 12,548 11,032 
Net (loss) gain on equity investments(1,252)(466)576 8,287 24,487 
Gain on sale of PPP loans— — — — 5,101 
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses)57,097 54,434 51,198 50,291 53,053 
FHLB advance prepayment fees— — — — 13,333 
Branch consolidation expense7,286 4,014 26 1,011 3,336 
Merger related expenses451 225 446 381 1,194 
Income before provision for income taxes26,735 31,521 40,609 43,376 43,483 
Provision for income taxes4,078 7,354 10,054 10,679 10,419 
Net income$22,657 $24,167 $30,555 $32,697 $33,064 
Net income available to common stockholders$21,653 $23,163 $29,551 $31,693 $32,060 
Diluted earnings per share$0.37 $0.39 $0.49 $0.53 $0.54 
Net accretion/amortization of purchase accounting adjustments included in net interest income$3,610 $3,644 $2,835 $3,650 $6,186 











19


(continued)
At or For the Three Months Ended
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Selected Financial Ratios and Other Data(1):
Performance Ratios (Annualized):
Return on average assets (2)
0.72 %0.78 %1.03 %1.12 %1.09 %
Return on average tangible assets (2) (3)
0.75 0.82 1.08 1.18 1.14 
Return on average stockholders' equity (2)
5.65 6.05 7.88 8.59 8.65 
Return on average tangible stockholders' equity (2) (3)
8.59 9.20 12.07 13.22 13.43 
Stockholders' equity to total assets12.92 12.79 13.14 12.95 12.96 
Tangible stockholders' equity to tangible assets (3)
8.89 8.78 9.01 8.83 8.79 
Tangible common equity to tangible assets (3)
8.40 8.29 8.50 8.33 8.28 
Net interest rate spread2.88 2.80 2.75 2.78 2.79 
Net interest margin2.99 2.93 2.89 2.93 2.97 
Operating expenses to average assets (2)
2.15 1.98 1.80 1.83 2.40 
Efficiency ratio (2) (4)
72.04 67.43 60.21 54.73 59.86 
Loans-to-deposits88.60 83.71 83.06 82.84 82.27 
At or For the Year Ended December 31,
20212020
Performance Ratios:
Return on average assets (2)
0.91 %0.55 %
Return on average tangible assets (2) (3)
0.95 0.57 
Return on average stockholders' equity (2)
7.02 4.20 
Return on average tangible stockholders' equity (2) (3)
10.73 6.59 
Net interest rate spread2.80 2.96 
Net interest margin2.93 3.16 
Operating expenses to average assets (2)
1.94 2.20 
Efficiency ratio (2) (4)
63.50 63.70 


















20


(continued)
At or For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
20212021202120212020
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$287,404 $274,807 $278,785 $274,172 $245,175 
Nest Egg AUA/M428,558 423,563 425,921 410,497 398,174 
Total AUA/M715,962 698,370 704,706 684,669 643,349 
Per Share Data:
Cash dividends per common share$0.17 $0.17 $0.17 $0.17 $0.17 
Stockholders’ equity per common share at end of period25.63 25.47 25.22 24.84 24.57 
Tangible common equity per common share at end of period (3)
15.93 15.78 15.58 15.26 14.98 
Common shares outstanding at end of period59,175,046 59,417,266 59,834,01860,329,50460,392,043 
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:47 58 58 62 62 
Quarterly Average Balances
Total securities$1,710,143 $1,542,630 $1,501,484 $1,311,683 $1,209,543 
Loans receivable, net8,297,395 7,864,720 7,788,919 7,729,798 7,992,365 
Total interest-earning assets10,706,190 10,461,147 10,282,888 10,180,392 10,425,380 
Total goodwill and core deposit intangible519,401 520,765 522,122 523,499 525,511 
Total assets11,953,610 11,738,037 11,539,732 11,439,501 11,747,439 
Time deposits819,025 904,384 1,002,086 1,221,123 1,437,770 
Total deposits (including non-interest-bearing deposits)9,937,607 9,699,033 9,507,392 9,425,609 9,505,835 
Total borrowed funds361,500 371,189 363,531 357,812 590,295 
Total interest-bearing liabilities7,831,519 7,494,099 7,408,720 7,571,148 7,886,598 
Non-interest bearing deposits2,467,588 2,576,123 2,462,203 2,212,273 2,209,532 
Stockholders’ equity1,519,976 1,519,488 1,504,035 1,495,580 1,475,088 
Tangible stockholders’ equity1,000,575 998,723 981,913 972,081 949,577 
Quarterly Yields
Total securities1.57 %1.57 %1.62 %2.07 %2.38 %
Loans receivable, net3.89 3.98 3.97 4.09 4.23 
Total interest-earning assets3.28 3.24 3.25 3.38 3.53 
Time deposits0.84 0.94 1.03 1.21 1.39 
Total cost of deposits (including non-interest-bearing deposits)0.20 0.22 0.27 0.37 0.45 
Total borrowed funds3.14 3.11 3.31 3.14 2.72 
Total interest-bearing liabilities0.40 0.44 0.50 0.60 0.74 
Net interest spread2.88 2.80 2.75 2.78 2.79 
Net interest margin2.99 2.93 2.89 2.93 2.97 

(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity.
(4)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.





21



OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION
For the Three Months Ended
December 31, 2021September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
Core Earnings:
Net income available to common stockholders (GAAP)
$21,653 $23,163 $29,551 $31,693 $32,060 
Add (less) non-recurring and non-core items:
Merger related expenses451 225 446 381 1,194 
Branch consolidation expense7,286 
(1)
4,014 26 1,011 3,336 
Net loss (gain) on equity investments1,252 466 (576)(8,287)(24,487)
FHLB advance prepayment fees— — — — 13,333 
Gain on sale of PPP loans— — — — (5,101)
Income tax (benefit) expense on items(2,144)(1,138)26 1,666 2,832 
Core earnings (Non-GAAP)
$28,498 $26,730 $29,473 $26,464 $23,167 
Core diluted earnings per share$0.48 $0.45 $0.49 $0.44 $0.39 
Core Ratios (Annualized):
Return on average assets0.95 %0.90 %1.02 %0.94 %0.78 %
Return on average tangible assets0.99 0.95 1.07 0.98 0.82 
Return on average tangible stockholders’ equity11.30 10.62 12.04 11.04 9.71 
Efficiency ratio62.57 62.22 60.06 58.37 59.69 
(1) Includes $2.0 million of gains related to the sale of two branches for the three months ended December 31, 2021.
For the Years Ended December 31,
20212020
Core Earnings:
Net income available to common stockholders (GAAP)
$106,060 $61,212 
Add (less) non-recurring and non-core items:
Merger related expenses1,503 15,947 
Branch consolidation expense12,337 
(1)
7,623 
Net gain on equity investments(7,145)(20,911)
FHLB advance prepayment fees— 14,257 
Gain on sale of PPP loans— (5,101)
Two River and Country Bank opening credit loss expense under the CECL model— 2,447 
Income tax benefit on items(1,590)(3,288)
Core earnings (Non-GAAP)
$111,165 $72,186 
Core diluted earnings per share$1.86 $1.20 
Core Ratios:
Return on average assets0.95 %0.64 %
Return on average tangible assets1.00 0.68 
Return on average tangible stockholders’ equity11.25 7.77 
Efficiency ratio60.84 57.81 
(1) Includes $2.0 million of gains related to the sale of two branches for the year ended December 31, 2021.
22


(continued)
December 31,September 30,June 30,March 31,December 31,
20212021202120212020
Tangible Equity:
Total stockholders' equity$1,516,553 $1,513,249 $1,508,789 $1,498,719 $1,484,130 
Less:
Goodwill500,319 500,319 500,319 500,319 500,319 
Core deposit intangible18,215 19,558 20,912