OceanFirst Financial Corp. Annual Report 2017

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FY2017 Annual Report · OceanFirst Financial Corp.

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Headquarters

New York

Hunterdon

Somerset

P hila d elp hia
Philadelp hia

OceanFirst Financial Corp.
operates as the holding company for

OceanFirst Bank, a community-oriented

financial institution offering a wide variety

of financial services to meet the needs of

the communities it serves throughout the

region. The Bank provides commercial

and residential financing solutions, wealth

management, and deposit services.

OceanFirst Bank is the fourth largest

New Jersey-based banking institution

by deposit market share.

FIN A NCIAL SU M M ARY
(dollars in thousands, except per share amounts)

At or for the year ended December 31,

2017

2016

2015

2014

Selected Financial Condition Data:

Total assets

Loans receivable, net

Deposits

Stockholders’ equity

Selected Operating Data:

Net interest income

Other income

Operating expenses(1)

Net income(1)

Diluted earnings per share(1)

Selected Financial Ratios:

Tangible stockholders’ equity per share

Cash dividend per share

$5,416,006

$5,166,917

$2,593,068

$2,356,714

3,965,773

3,803,443

1,970,703

1,688,846

4,342,798

4,187,750

1,916,678

1,720,135

601,941

571,903

238,446

218,259

169,218

120,262

27,072

20,412

126,520

102,852

42,470

1.28

13.58

0.60

23,046

0.98

12.94

0.54

76,829

16,426

60,775

20,322

1.21

13.67

0.52

72,348

18,577

57,764

19,920

1.19

12.91

0.49

Tangible stockholders’ equity to total tangible assets

8.42%

8.30%

9.12%

9.26%

Return on average assets(1)

Return on average tangible stockholders’ equity(1)

Net interest rate spread

Net interest rate margin

Operating expenses to average assets(1)

Efficiency ratio(1)

Non-performing loans as a percent of total loans receivable

0.80

9.82

3.41

3.50

2.39

64.46

0.52

0.62

7.13

3.38

3.47

2.76

73.11

0.35

0.82

8.96

3.18

3.28

2.47

65.17

0.91

0.86

9.18

3.23

3.31

2.50

63.53

1.06

(1) Amounts and performance ratios for 2017 include merger related expenses, branch consolidation expenses, acceleration of stock

award expense due to the retirement of a director, and additional income tax expense related to the recently enacted Tax Reform of
$18.4 million with an after tax cost of $13.7 million, or $0.42 per diluted share. Amounts and performance ratios for 2016 include
merger related expenses and a Federal Home Loan Bank advance prepayment fee totaling $16.7 million with an after tax cost of
$11.9 million, or $0.51 per diluted share. Amounts and performance ratios for 2015 include merger related expenses of $1.9 million
with an after tax cost of $1.3 million, or $0.08 per diluted share.

OCE A N FIRST FIN A NCI A L COR P. N A SDAQ: OCFC

LETTER TO SHAREHOLDERS

Dear Fellow Shareholders,

2017 represented another year of strong performance

A relentless focus on growing low-cost and durable

for our Company, illustrated by excellent operating

deposits, combined with high-quality loans, has been

results in the fourth quarter, which included after-tax

the hallmark of OceanFirst for many years. The addition

core(1) net income of $14.9 million, yielding a return on

of growth via acquisition has provided an important

average assets of 1.09%, a return on average tangible

supplement; however, acquisitions are not a substitute

common equity of 13.3% and an efficiency ratio of

for organic growth, nor will they improve a business

53.7%. These figures demonstrate the value of focus-

if its fundamental business strategy or execution is

ing on organic growth, increasing operating scale

flawed. While our success with recent acquisitions

through our recent acquisitions, and keeping a sharp

gives us the confidence to evaluate additional oppor-

eye on risk management and regulatory compliance.

tunities, acquisitions are not a stand-alone strategy

Operating Trends & Strategies

Total deposits grew by $155 million while our average

cost of deposits increased just four basis points over

the prior year. We accomplished this despite reducing

our branch locations by 15 branches, or 25% of our

network. Loan production of $828 million resulted in

net growth of $160 million as we took the opportunity

to improve the credit risk profile of our loan portfolio,

an important discipline. Over the past five years our

ability to drive organic growth and improve operating

scale with several acquisitions has resulted in core

EPS growth of 40%.

and take a lower strategic priority than core operat-

ing discipline and organic growth initiatives.

We have established several strategic priorities for the

remainder of 2018 and the next few years, including

Loan Portfolio Growth, Net Interest Margin Manage-

ment, Deposit Growth and enhancing our Direct

Banking Capabilities.

Loan Portfolio Growth will continue to be driven on

a relationship basis. Recruiting top tier commercial

loan talent remains a priority and we were pleased to

announce the opening of a new commercial loan

production office in Doylestown, Pennsylvania that

Quarterly Earnings Per Share and Efficiency Ratio

Core Efficiency Ratio

Core Diluted Earnings Per Share

61.49%

$0.26

$0.45

53.67%

Q2 ’13

Q4 ’13

Q2 ’14

Q4 ’14

Q2 ’15

Q4 ’15

Q2 ’16

Q4 ’16

Q2 ’17

Q4 ’17

Q3 ’13

Q1 ’13
(1) Core net income excludes merger related expenses, branch consolidation expenses, acceleration of stock award expense due to the
retirement of a director, and additional income tax expense related to the recently enacted Tax Reform totaling $18.4 million with an
after tax cost of $13.7 million.

Q1 ’15

Q3 ’15

Q1 ’16

Q3 ’16

Q1 ’17

Q3 ’17

Q1 ’14

Q3 ’14

0.5

0.4

0.3

0.2

will serve the broader Bucks County area. In addition,

certificate balances rapidly and seemingly without regard

the Sun acquisition has afforded us the opportunity

for interest rate risk positions. This reliance on price sen-

to expand via commercial loan production offices in

sitive deposits is apparent as many of our competitors

Edison, New Jersey, and Manhattan, New York. Our

are experiencing high and rapidly rising deposit funding

professional lenders typically possess decades of

costs. Our relationship driven approach, which is signifi-

experience and customer contacts while defining the

cantly more time consuming and managerially intensive,

OceanFirst brand. Similarly, our residential lending

provides a durable competitive advantage. Long-term

business continues to grow by adding seasoned talent

investments in corporate cash management, the focus

throughout central New Jersey and in the greater

on commercial lending, and our disciplined approach to

Philadelphia metropolitan market. Whether commercial

pricing have been successful as demonstrated by strong

or residential, our lending strategy focuses on securing

and stable net interest margins.

the best possible talent and providing them with the

resources to be responsive and highly competitive.

Loan Balances
(in Billions)

$3.97

$3.80

$1.97

$1.69

$1.54

2013

2014

2015

2016

2017

Loans Acquired via Acquisition

OceanFirst Legacy

Net Interest Margin Management will be critical

as the interest rate cycle turns. Our pricing discipline

for both loan and deposit products, coupled with an

expanding expertise in Corporate Cash Manage ment,

have allowed us to maintain a relatively neutral interest

rate risk position. Within the last decade, interest rate

Deposit Growth may be modest in 2018 as our focus

on quality deposits will restrain overall growth. Incre-

mental investments in leadership talent in Corporate

Cash Management will provide increasing value to

the Bank and to our customers. In addition, our

retention of deposits at acquired banks exceeds 94%

and the retention of deposits at the 15 branches

4000000

consolidated in 2017 remains above 97%. As con-

3500000

sumer preferences change, it is critical that we shift

3000000

our investments to provide convenience according to

2500000

our customer’s definition. Con venience is increasingly

2000000

1500000

1000000

500000

Deposit Balances
(in Billions)

$4.34

$4.19

$1.75

$1.72

$1.92

discipline has made little difference to community banks.

2013

2014

2015

2016

2017

Many banks have adopted less rigorous deposit gather-

Deposits Acquired via Acquisition

ing strategies, growing rate sensitive money market and

OceanFirst Legacy

5000000

4000000

3000000

2000000

1000000

OCEANFIRST FINANCIAL CORP. NASDAQ: OCFCdefined by mobile, online, telephone, text, email, and

past few years recruiting top tier talent, retaining the

video conferencing rather than by our physical branch

best talent from acquired banks, and investing in our

locations and the hours of our drive-up facilities.

legacy workforce. We are pleased to include a number

Direct Banking Capabilities will be the foundation of

our customer interactions in the coming years. I was

recently asked how we might compete with the likes

of Google, Facebook, Twitter, SnapChat, Uber, or

of our staff in this year’s report. They represent the

incredible team of over 1,000 employees that come

to work each day, focused on building a premier

community bank.

AirBNB. My answer is simple: social media does a

External recruiting has led to the addition of quality

phenomenal job connecting us with each other but

employees throughout the Company in disciplines as

spends little time or effort trying to establish relation-

diverse as commercial lending, information security,

ships with their users. These social media behemoths

customer experience, business intelligence, and risk

know what you purchase, where you are located, what

management. Our focus has been clear, whether we

you like to photograph, and even who your friends

are recruiting a seasoned commercial banker with

are. However, their business models are different and

decades of experience or a recent graduate with

do not include a focus on direct relationships nor

computer engineering skills. We focus on attracting

have they demonstrated a focus on protecting their

bright, competitive, and team-focused employees

clients’ data. Have you ever tried to call, visit, or text

that will drive the Bank’s performance. Our acquisi-

any of these entities for help, or attempt to commu-

tions have provided a wonderful opportunity to identify

nicate with a human being? Automation is very valu-

talent at every level. Among the senior officer group,

able but robots will not

the Bank has added Executive Vice President and

replace trusted advisors

Senior Vice President talent in Commercial Lending,

anytime soon.

Residential Lending, Corporate Cash Management,

That said, consumers are

demanding technology

excellence. Processes

must be easy to use and

response times lightning

fast. We have invested

in technology for years,

Investment Services, Human Resources, Information

Security and Bank Secrecy Act/Anti-Money Laundering.

As it relates to the broader pool of employees, over

74% of employees joining on the first day of an acqui-

sition have been matched to long-term positions

at OceanFirst.

Compensation plays a critical role and the competitive

pioneered online banking,

pressure in this area cannot be ignored. To ensure

OceanFirst Bank offers mobile banking
for customers’ convenience.

bill payment, remote deposit, mobile banking, card

we attract and retain the best talent in an increasingly

management, Apple Pay, Android Pay, and we expect

complex industry, the Company implemented a $15

to launch Zelle payments this year. One challenge

minimum wage policy in January 2018. To afford

as we grow is ensuring that our employees quickly

long-term compensation opportunities, the Company

embrace technology to ensure our unique blend of

is in the process of expanding our Employee Stock

high-tech and high-touch banking provides a seamless

Ownership Plan (ESOP) by purchasing approximately

customer experience. Our investment in Direct Bank

300,000 additional shares of OCFC common stock

leadership, along with the appropriate training,

which will be added to the Plan in 2018. This commit-

compensation, and technology will allow us to meet

ment will increase the annual ESOP allocation for

that challenge.

every employee and thus support their retirement

planning while aligning them with our shareholder

Human Capital Management

value objectives.

Human Capital can provide a sustainable competitive

advantage for OceanFirst. The Bank has spent the

Investing in employees is more than just a compen-

the New York City ferry, the location enhances

sation discussion. We have expanded external train-

efforts to grow our client base into New York and

ing opportunities for our employees with the Risk

northern New Jersey, as well as increases our

Management Association (RMA), the Stonier Graduate

access to a diverse and highly qualified labor pool.

School of Banking at the Wharton School of the

There has been a talent war in our industry for years

University of Pennsylvania, and a unique partnership

and it is growing more intense. Our approach to

with Monmouth University’s Graduate School. In

compensation, investing in staff development, and

addition to external opportunities, the Bank has created

providing exceptional work environments is strategi-

a nine-week Certified Digital Banker curriculum which

cally focused on winning the talent war.

enables our customer facing employees to be best

positioned to help clients as their service needs evolve.

All customer facing retail employees will have com-

pleted this curriculum by the end of 2018.

In addition to compensation and training, the physical

work environment is becoming an increasingly

important factor in recruiting top-tier talent. The Bank

is dedicating substantial resources to consolidate

over 300 employees from 19 disparate back office

locations into two scalable, convenient, and attractive

campuses that address current employee needs and

position us to accommodate future growth. Our nine-

acre operations campus in Toms River is undergoing

a multi-phase renovation that will provide an extraor-

dinary environment, including a new, state-of-the-art

customer contact center to support the dramatic

growth of our Direct

Banking activities.

Complementing the

operations campus is

a new administrative

building, which is fea-

tured on the cover of this

report. This new building,

located in Red Bank,

New Jersey, will provide

access to a wide and

talented labor pool and

Renovation of the operations center is
currently underway.

will attract specialists in finance, credit administration,

risk management, information technology, and cyber-

security. Located in a vibrant urban environment

within walking distance of New Jersey Transit rail

service to New York City and a short drive from

“ The Bank is dedicating substantial resources
to consolidate over 300 employees from
19 disparate back office locations into two
scalable, convenient and attractive campuses
that address current employee needs and
position us to accommodate future growth.”

Economic Issues and Opportunities

Community banks reflect the economic opportunity

of the markets they serve. As our economy is reaching

a relatively high level of employment and inflation

appears to be stabilizing, the Federal Reserve is sig-

naling that several increases to short-term interest

rates are on the agenda for 2018. While caution is

appropriate, increases to interest rates are a positive

sign that the economy is demonstrating strength that

has not been evident in more than ten years.

Tax reform should stimulate the economy further,

adding fuel which may lengthen the duration of the

expansion. However, expansions do not last forever,

which is a reason to be even more vigilant regarding

the timing and nature of the next recession or nega-

tive credit cycle. Forecasting credit cycles is a difficult

business in any environment, but today’s outlook is

even more challenging. On the one hand, the pros-

pect of broad global economic growth, tax reform in

the U.S., and the possibility of a simulative infrastruc-

ture spending plan all point to the potential for years

of additional growth ahead. On the other hand, the

prospect that interest rate increases might substan-

tially dampen loan demand and the possible negative

economic effects of a tariff induced trade war suggest

that the current expansion may be on borrowed time.

The situation reminds us of the joke about wanting a

one-handed economist.

OCEANFIRST FINANCIAL CORP. NASDAQ: OCFCAs a community bank it is our responsibility to plan

dividend. In the event that our earnings allow us to

for a wide range of outcomes and to pursue a path of

accumulate a significant amount of excess capital,

careful growth while adhering to strict risk management

the Company has several tools with which capital

disciplines. This approach may result in a lower growth

levels can be optimized, including acquisitions, share

rate than other banks, but preserving margins will

repurchases and the consideration of special divi-

allow the Bank to deliver steady earnings growth

dends. We will certainly keep you apprised of our

while strategically positioning us to take advantage

strategic approach to capital management as the

of the next cycle.

Capital Management

year progresses.

Governance

As earnings have advanced we have taken the oppor-

As the Company grows it is imperative that the Board

tunity to increase the quarterly cash dividend to

of Directors also adapt to meet the changing gover-

$0.15 per share, a 25% increase over the past five

nance requirements of a larger, more complex, and

years. At this level the dividend is on the low end of

more geographically diverse business. Our Board has

our historical payout ratio, allowing for an opportunity

embraced this challenge and has committed to an

to re-evaluate capital management strategies. Most

ongoing process of Board Renewal. This process

important to the capital discussion is determining

includes reviewing the Board’s policies and proce-

the amount of capital the Bank might require to

dures, the structure of committees, mechanisms for

support growth initiatives or to weather a period of

policy oversight, and the composition of talent in

economic uncertainty.

the Boardroom.

Given the competitive pressure currently evident in

our markets, it is unlikely that internally generated

capital will be effectively deployed solely through

organic growth. Prudent acquisitions, which have

“ Our Board has embraced this challenge
and has committed to an ongoing process
of Board Renewal.”

fueled earnings growth in recent years, are a second

As part of this process, the Board has adjusted poli-

option to deploy capital. As our industry consolidates

cies, including the relaxation of residence require-

and as our track record demonstrates, there is a rea-

ments and the elimination of age restrictions, both

sonable chance to effectively deploy capital through

targeted to ensure a wider pool of Director candi-

acquisitions. Of course, capital that does not have

dates. The Board has also separated the finance

the prospect of being useful to the Company in the

functions of the Risk Committee into a new Finance

long term should be returned to our shareholders.

Committee. Routine policy and procedure matters

The external environment adds complexity to the

evaluation as the lack of clarity around medium term

economic conditions presents a challenge. Interest

rate movements, the possibility of negative economic

developments, and the opposite prospect of positive

economic developments, are causing potential out-

comes to be widely diverse.

Given our ability to deploy capital and the uncertainty

of the external economic environment, we have

deferred consideration of an increase to the regular

have been delegated to the committee level in order

to ensure the full Board focuses on the strategic

direction of the Company. In addition, the Leadership

Committee has developed a matrix of Director skills

and experiences to ensure the talent composition of

the Board reflects the strategic challenges facing the

Company. Finally, in this year’s proxy statement we

are asking our shareholders to approve a declassified

election process for the Board, which will allow our

shareholders to vote on every Director’s term each

year. Annual Director elections allow the Company the

maximum opportunity to guide the composition of

Directors Anthony Coscia, Grace Torres, and John

the Board on an ongoing basis. These changes posi-

Lloyd were appointed to the Board in early 2018.

tion the Board to provide the appropriate governance

Their insights, ideas, skills, and varied experiences

for a fast growing and complex Company.

over a broad industry spectrum make them valuable

“ Annual Director elections allow the Company
the maximum opportunity to guide the com-
position of the Board on an ongoing basis.”

Directors Dorothy McCrosson and Donald McLaughlin

have announced their intention to retire from Board

service effective at the Annual Shareholder meeting

in May. Ms. McCrosson joined the Company through

the Ocean City Home Bank acquisition, having

served that Bank since 2011. She has played an

important role during the integration of Ocean City

Home Bank, and has served with distinction on our

Leadership Committee. We are looking forward to

continuing to work with her as she focuses on her

private law practice.

additions to the Board.

Finally, on behalf of the Board of Directors, the

Officers and Staff, and our customers, we thank you

for the investment you have made in OceanFirst

Financial Corp. and your support and confidence in

our ability to continue to deliver shareholder value.

Christopher D. Maher

Chairman of the Board

President and Chief Executive Officer

Mr. McLaughlin deserves special recognition. He

joined the Board of Ocean Federal Savings in 1985,

April 11, 2018

serving our Company and its predecessor for 33 years.

Don helped guide the Board through the demutualiza-

tion process in 1996 and has served as a Director of

the OceanFirst Foundation since its inception. Among

Don’s many significant contributions has been his

chairmanship of the Risk Committee, which he has

lead since its creation. He also played a pivotal role in

creating a governance structure that has served the

Bank extremely well. Don’s unflappable demeanor

and thoughtful leadership created a strong risk man-

agement foundation that will serve the Bank well for

years to come. His presence will be greatly missed in

the Boardroom.

OCEANFIRST FINANCIAL CORP. NASDAQ: OCFCOUR TEAM MAKES
THE DIFFERENCE

“ The dedication of my colleagues—their integrity and their
daily commitment to excellence—is what makes OceanFirst
an extraordinary bank.”

SHARON DANIELSON, SVP Deposit Operations Manager

Anthony GIORDANO III
SVP Senior Operations Manager

Sharon DANIELSON
SVP Deposit Operations Manager

Keshia JONES
AVP Branch Manager

Jennifer INGENITO
VP Human Resources Manager

OceanFirst employees take pride in ensuring
we deliver exceptional products and services
for our customers. Whether they are
responsible for originating loans, managing
the digital banking platform, or maintaining
our cybersecurity, the strength of OceanFirst
employees differentiates our bank.

Our team is now more than 1,000 strong,
with employees from our legacy OceanFirst
organization working side-by-side with
those from the banks we have acquired.
The employees featured on these few pages
represent the commitment of our talented
and united team of professionals.

Javier HURTADO
VP Branch Manager

Issan ACOSTA
AVP Branch Manager

Amanda TILLEY
VP Project Management Officer

Nina ANUARIO
SVP Senior Business Development Officer

OceanFirst Bank

Colonial American Bank

Cape Bank

Ocean City Home Bank

Sun National Bank

OCE A N FIRST FIN A NCI A L COR P. N A SDAQ: OCFC

RELATIONSHIPS ARE
OCEANFIRST’S STRENGTH

Whether collaborating with colleagues,
connecting with customers, or helping our
neighbors in the communities we serve, our
employees appreciate every relationship.

“ Banking is all about personal
and professional relationships.
We view our digital platform
as a way of reinforcing those
connections.”

TRICIA CILIBERTO, VP Direct Bank

Volha KISLAYA
AVP Branch Manager

Joseph LaDUCA
SVP Controller

Tricia CILIBERTO
VP Direct Bank

Collaborating with Colleagues
OceanFirst employees are distinguished
by their ability to build relationships across
the organization. By combining diverse
perspectives and complementary skills,
they spur innovation, improve outcomes,
and facilitate teamwork. These relationships
strengthen our bank, delivering enhanced
value for customers and shareholders.

Connecting with Customers
At OceanFirst, we work closely with
customers, helping them achieve their
financial aspirations at every stage of their
lives. Whether it is owning a home, sending
children to college or preparing for retirement,
OceanFirst is ready to lend a hand.

Thomas ANDO
SVP Commercial Lender

Janet BOSSI
SVP Loan Originations Manager

Christine DePHILLIPS
Senior Commercial Loan Assistant

Shannan BOYD
VP Loan Operations Manager

OceanFirst Bank

Colonial American Bank

Cape Bank

Ocean City Home Bank

Sun National Bank

OCE A N FIRST FIN A NCI A L COR P. N A SDAQ: OCFC

OceanFirst Foundation

OceanFirst Bank has established a reputation as a
good neighbor and responsible corporate citizen
since its founding in 1902. When the Board of
Directors and management of OceanFirst were
planning the conversion from a mutual, depositor-
owned organization to a publicly owned company,
they realized the transaction provided a unique
opportunity to help their neighbors in a new way.
With the approval of depositors, OceanFirst became
the first bank in the United States to establish a pri-
vate foundation in conjunction with an IPO. In 1996,
OceanFirst Foundation was created with a one-time
endowment of $13.4 million in the newly issued
OceanFirst Financial Corp. (OCFC) common stock.

OceanFirst Foundation concentrates on four priorities: health and

wellness initiatives, housing programs, improving the quality

of life, and youth development and education.

The return on that initial investment has been
remarkable. At the end of 2017, total grants from
OceanFirst Founda tion were over $34 million.
Measured in lives transformed, the benefits are
incalculable.

The impact of OceanFirst’s decision to create an
independent foundation in conjunction with their
IPO extends far beyond central and southern
New Jersey. Since OceanFirst established the
Foundation, it is estimated that no less than 100
mutual conversions have followed OceanFirst’s
lead, mobilizing hundreds of millions of dollars for
nonprofit organizations across the country.

In addition to traditional grants, OceanFirst Foundation intro-

• OceanFirst Foundation partners with the Lakewood

duced several significant initiatives, including:

BlueClaws and Townsquare Media for the OceanFirst

• Through the OceanFirst Charity Challenge, established

four years ago, over 100 non-profit organizations have

raised over $1.5 million. In addition, OceanFirst Foundation

presented over $90,000 in grants and prizes to the partici-

pating charities.

• Since the OceanFirst Foundation Scholarship Program was

created in 2010, $1.8 million has been awarded to local

colleges and universities in our footprint, helping 1,260 high

school graduates from central and southern New Jersey

pursue their dream of higher education.

Foun da tion Home Runs for Heroes program, which supports

charities that help veterans and local service men and

women. Since the program began in 2009, $260,000 has

been provided to 14 organizations helping hundreds of our

military and their families who have sacrificed so much for

our country.

• To help parents afford rewarding summer experiences for

their children, OceanFirst Foundation introduced a Summer

Camp Grants program in 2017. Already $90,000 has been

awarded to 22 local organizations with hundreds of children

benefitting.

Scott McLaughlin
Special Assets Group
Michael C.K. Moorhead
Commercial Credit Administration
Edward K. Moran
Commercial Lending
Veronica Morey
Retail Banking
Marc A. Mosco
Human Resources
Rachel M. O’Keefe
Wealth Operations & Administration
Steven L. Pellegrinelli
Commercial Lending
Louis Petrini
Commercial Lending
Charles L. Pinto
Retail Banking
Michele A. Powelczyk
Commercial Credit Administration
Michael C. Reda
Chief Information Officer
Brian E. Schaeffer
Chief Information Security Officer
James M. Smith
Commercial Lending
Noel M. Spear
Real Estate Operations
Mark A. Tasy
Retail Banking
William G. Toner
Information Technology
Suzanne L. Wegryn
Commercial Credit Administration
David A. Williams
Information Technology
Wendy L. Wright
Commercial Credit Administration

OceanFirst Financial Corp.
OceanFirst Bank

BOARD OF DIRECTORS
Steven E. Brady
Retired
Ocean Shore Holding Co.
Joseph J. Burke, CPA
Retired
KPMG LLP
Angelo Catania
Retired
Homestar Services, LLC
Anthony R. Coscia, Esq.
Partner
Windels Marx Lane & Mittendorf, LLP
Michael D. Devlin
Retired
Cape Bancorp., Inc.
Jack M. Farris
Vice President and
Deputy General Counsel
InfoSec & Cybersecurity for
Verizon Communications, Inc.
John K. Lloyd
Co-CEO
Hackensack Meridian Health
Christopher D. Maher
Chairman of the Board
President and Chief Executive Officer
Dorothy F. McCrosson, Esq.
Managing Partner
McCrosson & Stanton, P.C.
Donald E. McLaughlin, CPA
Retired
Diane F. Rhine
Broker Sales Representative
Childers Sotheby’s
International Realty
Mark G. Solow
Retired
GarMark Advisors, LLC
Grace C. Torres
Trustee
Prudential Retail Mutual Funds
John E. Walsh
Senior Vice President
T and M Associates, Inc.
Samuel R. Young
President and CEO
Tilton Fitness Management

DIRECTORS EMERITUS
John W. Chadwick
John R. Garbarino
Robert E. Knemoller
James T. Snyder

OceanFirst Financial Corp.
CORPOR ATE OFFICERS
Christopher D. Maher
Chairman of the Board
President and Chief Executive Officer
Michael J. Fitzpatrick
Executive Vice President
Chief Financial Officer
Steven J. Tsimbinos
Executive Vice President
General Counsel
Corporate Secretary
Grace M. Vallacchi
Executive Vice President
Chief Risk Officer
Jill Apito Hewitt
Senior Vice President
Investor Relations Officer
Robert A. Laskowski
Senior Vice President
Treasurer
Linda L. Blakaitis
Vice President
Assistant Corporate Secretary

OceanFirst Bank
E XECUTIVE OFFICERS
Christopher D. Maher
Chairman of the Board
President and Chief Executive Officer
Michael J. Fitzpatrick
Executive Vice President
Chief Financial Officer
Gary S. Hett
Executive Vice President
Chief Human Resources Officer
Joseph R. Iantosca
Executive Vice President
Chief Administrative Officer
Nicos Katsoulis
Executive Vice President
Corporate Banking
Joseph J. Lebel III
Executive Vice President
Chief Banking Officer
Steven J. Tsimbinos
Executive Vice President
General Counsel and
Corporate Secretary
Grace M. Vallacchi
Executive Vice President
Chief Risk Officer

FIRST SENIOR
VICE PRESIDENTS
Vincent M. D’Alessandro
President, Southern Region
George Destafney
President, Central Region
David R. Howard
President, Direct Banking

SENIOR VICE PRESIDENTS
Carlo Alibrandi
Commercial Lending
Thomas A. Ando
Commercial Lending
Nina Anuario
Business Development
Michelle J. Berry
Residential Lending
Janet M. Bossi
Residential Lending
Michael A. Boyd
BSA
Paul H. Ciancimino
Commercial Lending
Michael Coleman
Commercial Lending
William R. Cornelius
Commercial Lending
Anthony D’Imperio
Chief Credit Officer
Sharon L. Danielson
Deposit Operations
Craig Degenova
Commercial Lending
Michael DellaBarca
Commercial Credit Administration
Michele B. Estep
Human Resources
Bradley J. Fouss
Commercial Lending
Edward J. Geletka
Retail Sales
Anthony Giordano III
Senior Operations Manager
Mark A. Harhigh
Commercial Credit Administration
Michele E. Hart
Associate General Counsel
Jill Apito Hewitt
Investor Relations & Corporate
Communications
Angela K. Ho
Principal Accounting Officer
Gayle S. Hoffman
Chief Enterprise Risk Officer
Sean D. Kauffman
Commercial Lending
Kenneth L. Keller
Commercial Lending
Joseph A. LaDuca
Controller
Cara M. Larned
Marketing
Cynthia Lash
Commercial Lending
Robert A. Laskowski
Treasurer
Raymond C. Leahy
Commercial Lending
Stacy S. Mattia
Commercial Lending
Nancy L. Mazza
Retail Banking

On March 12, 2018 OceanFirst representatives gathered to ring the closing
bell at Nasdaq.*

Shareholder Information

ADMINISTR ATIVE OFFICES
110 West Front Street
Red Bank, NJ 07701

OPER ATIONS CENTER
975 Hooper Avenue
Toms River, NJ 08754-2009

ANNUAL MEETING OF SHAREHOLDERS

The Annual Meeting of Shareholders will be held on
May 31, 2018 at 6:00 pm at the OceanFirst Bank
Administrative Offices at 110 West Front Street,
Red Bank, New Jersey 07701.

INVESTOR REL ATIONS
Copies of the Company’s earnings releases and
financial publications, including the annual report on
Form 10-K (without exhibits) filed with the Securities
and Exchange Commission are available without
charge by contacting:

Jill Apito Hewitt, Senior Vice President,
Extension 7516 or investorrelations@oceanfirst.com

STOCK TR ANSFER AND REGISTR AR
Shareholders wishing to change the name, address or
ownership of stock, to report lost certificates or to con-
solidate accounts are asked to contact the Company’s
stock registrar and transfer agent directly:

American Stock Transfer and Trust Co.
Shareholder Relations Department
59 Maiden Lane, New York, NY 10038
(800) 937-5449

INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
KPMG LLP
51 John F. Kennedy Parkway
Short Hills, NJ 07078

*Photography by Nasdaq, Inc.

www.oceanfirst.com
NASDAQ: OCFC
(732) 240-4500

Member FDIC

Equal Housing Lender

Equal Opportunity Lender