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RED BANK, NEW JERSEY, April 29, 2021…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), today announced that net income available to common stockholders was $31.7 million, or $0.53 per diluted share, for the quarter ended March 31, 2021 as compared to $16.5 million, or $0.27 per diluted share, for the corresponding prior year period. The current quarter results benefited from the modest release of credit loss expense and improved levels of core operating expenses, which resulted in return on average assets of 1.12%, return on average tangible stockholders’ equity of 13.22%, and efficiency ratio of 54.73%, as compared to 0.64%, 7.50%, and 67.28%, respectively, in the prior year period.

Core earnings for the quarter ended March 31, 2021 amounted to $26.5 million, or $0.44 per diluted share. Core return on average assets, core return on average tangible stockholders’ equity, and core efficiency ratio were 0.94%, 11.04%, and 58.37%, respectively, for the quarter ended March 31, 2021. Core earnings is a non-GAAP (“generally accepted accounting principles”) measure. For the periods presented they exclude merger related expenses, branch consolidation expenses, net (gain) loss 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”) (collectively referred to as “non-core” operations). Non-core operations had a favorable impact of $5.2 million, net of tax, for the quarter ended March 31, 2021. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” table for additional information regarding our non-GAAP measures and impact per period by operation.

•Operations: The Company continues to expand its commercial banking activities with the hiring of nine commercial bankers. The additional lenders are expected to help fuel organic loan growth throughout the remainder of the year. Additionally, the Company consolidated four branches in April 2021 bringing the total number of branches consolidated to 57 over the past five years. These consolidations will increase the average branch size to $164 million and will help further offset operating expenses in the second quarter.

indicators demonstrated strong asset quality while broader economic indicators are strengthening; the combination of which supported a modest negative credit provision,” said Chairman and Chief Executive Officer, Christopher D. Maher about the Company’s results. Mr. Maher added, “We remain focused on organic loan production, and the continued additions of experienced commercial bankers to drive our growth initiatives.” Mr. Maher also remarked on the COVID-19 pandemic, "We are so appreciative of our employees who for over a year have continued to persevere through the unprecedented times of the pandemic and provide uninterrupted essential banking services to our customers. While we are encouraged by progress with vaccine distribution and transmission trends in many communities, we know this is not behind us and we must remain vigilant in our efforts as our customers and neighbors continue to count on us.”

The Company’s Board of Directors declared its ninety-seventh consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.17 per share will be paid on May 21, 2021 to common stockholders of record on May 10, 2021. 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 May 17, 2021 to preferred stockholders of record on April 30, 2021.

Net income was favorably impacted by $5.2 million, net of tax, and adversely impacted by $10.4 million, net of tax, of non-core operations for the quarters ended March 31, 2021 and 2020, respectively. Core earnings for the quarter ended March 31, 2021 were $26.5 million, or $0.44 per diluted share, a decrease from core earnings of $27.0 million, or $0.45 per diluted share for the corresponding prior year period. Core earnings for quarter ended March 31, 2021 increased from $23.2 million, or $0.39 per diluted share for the prior linked quarter.

Net interest income for the quarter ended March 31, 2021 decreased to $73.6 million, as compared to $79.6 million for the same prior year period, reflecting a reduction in net interest margin, partly offset by an increase in interest-earning assets. Average interest-earning assets increased by $1.08 billion for the quarter ended March 31, 2021, as compared to the same prior year period, primarily concentrated in interest-earning deposits. Average loans receivable, net of allowance for loan credit losses, decreased by $120.9 million for the quarter ended March 31, 2021, as compared to the same prior year period. Net interest margin for the quarter ended March 31, 2021 decreased to 2.93% from 3.52% for the same prior year period. The net interest margin compression was primarily due to the excess balance sheet liquidity, driven by a strategic decision to accumulate liquidity entering the economic downturn, the lower interest rate environment, and to a lesser extent, the origination of low-yielding PPP loans. For the quarter ended March 31, 2021, the cost of average interest-bearing liabilities decreased to 0.60%, from 1.05% for the corresponding prior year period. The total cost of deposits (including non-interest bearing deposits) was 0.37% for the quarter ended March 31, 2021, compared to 0.70% for the same prior year period.

Net interest income for the quarter ended March 31, 2021 decreased by $4.2 million, as compared to the prior linked quarter, while the net interest margin decreased to 2.93%, compared to 2.97%. Excluding the impact of purchase accounting accretion and prepayment fees, the net interest margin increased to 2.75% from 2.71%. The yield on average interest-earning assets decreased to 3.38% from 3.53% in the prior linked quarter, primarily due to lower purchase accounting accretion and a reduction in average loans receivable, net. The total cost of interest-bearing liabilities was 0.60% for the quarter ended March 31, 2021, as compared to 0.74% for the quarter ended December 31, 2020, due to lower deposit costs and the repayment of all FHLB advances in the prior quarter.

For the quarter ended March 31, 2021, other income increased to $20.8 million, as compared to $13.7 million for the corresponding prior year period. Other income for the quarter ended March 31, 2021 included $8.3 million of net gain on equity investments 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 sold in January 2021. Excluding this item, the decrease in other income for the quarter ended March 31, 2021, as compared to the corresponding prior year period, was primarily due to decreases in commercial loan swap income of $2.9 million and fees and service charges of $1.1 million, partially offset by an increase in gain on sale of loans of $1.7 million, and referral fees of $662,000 related to the origination of PPP loans.

Operating expenses decreased to $51.7 million for the quarter ended March 31, 2021, as compared to $62.8 million in the same prior year period. Operating expenses for the quarter ended March 31, 2021 included $1.4 million of expenses related to non-core operations, as compared to $11.1 million in the same prior year period. Excluding the impact of non-core operations, the $1.4 million decrease in operating expenses for the quarter ended March 31, 2021 was primarily due to decreases in compensation and benefits expense of $1.5 million and occupancy and equipment of $580,000, partially offset by an increase in federal deposit insurance expense of $1.2 million.

The provision for income taxes was $10.7 million for the quarter ended March 31, 2021, as compared to $4.0 million for the same prior year period, and $10.4 million for the prior linked quarter. The effective tax rate was 24.6% for the quarter ended March 31, 2021, as compared to 19.7% for the same prior year period, and 24.0% for the prior linked quarter. The higher effective tax rate for the current year period, as compared to the prior year period, is primarily due to the impact of a New Jersey tax code change and a higher allocation of taxable income to New York.

Total assets increased $129.2 million, to $11.58 billion at March 31, 2021, from $11.45 billion at December 31, 2020. Cash and due from banks decreased $98.5 million, to $1.17 billion at March 31, 2021, from $1.27 billion at December 31, 2020. Total debt securities increased by $230.3 million at March 31, 2021, as compared to December 31, 2020, which was partly offset by a decrease in equity investments of $56.9 million due to sales. Loans receivable, net of allowance for loan credit losses, increased by $115.7 million, to $7.82 billion at March 31, 2021, from $7.70 billion at December 31, 2020.

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, 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.

As previously announced, the Company will host an earnings conference call on Friday, April 30, 2021 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 10153816 from one hour after the end of the call until July 29, 2021. 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.

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: the impact of the COVID-19 pandemic on our operations and financial results and those of our customers, changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 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.


	March 31, 2021		December 31, 2020		March 31, 2020
	(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	1,173,665	$	1,272,134	$	256,470

Debt securities available-for-sale, at estimated fair value	268,511		183,302		153,738
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,717 at March 31, 2021, $1,715 at December 31, 2020 and $2,529 at March 31, 2020 (estimated fair value of $1,099,745 at March 31, 2021, $968,466 at December 31, 2020 and $928,582 at March 31, 2020)	1,082,326		937,253		914,255
Equity investments, at estimated fair value	50,159		107,079		14,409
Restricted equity investments, at cost	52,199		51,705		81,005
Loans receivable, net of allowance for loan credit losses of $59,976 at March 31, 2021, $60,735 at December 31, 2020 and $29,635 at March 31, 2020	7,820,590		7,704,857		7,913,541
Loans held-for-sale	43,175		45,524		17,782
Interest and dividends receivable	32,819		35,269		27,930
Other real estate owned	106		106		484
Premises and equipment, net	110,093		107,094		104,560

Bank owned life insurance	264,548		265,253		261,270

Assets held for sale	5,340		5,782		3,785
Goodwill	500,319		500,319		500,093
Core deposit intangible	22,273		23,668		28,276
Other assets	151,349		208,968		211,476
Total assets	$	11,577,472	$	11,448,313	$	10,489,074
Liabilities and Stockholders’ Equity
Deposits	$	9,502,812	$	9,427,616	$	7,892,067
Federal Home Loan Bank advances	—		—		825,824
Securities sold under agreements to repurchase with retail customers	134,465		128,454		90,175
Other borrowings	228,176		235,471		120,213
Advances by borrowers for taxes and insurance	20,980		17,296		24,931
Other liabilities	192,320		155,346		126,030
Total liabilities	10,078,753		9,964,183		9,079,240
Total stockholders’ equity	1,498,719		1,484,130		1,409,834
Total liabilities and stockholders’ equity	$	11,577,472	$	11,448,313	$	10,489,074


	For the Three Months Ended,
	March 31, 2021		December 31, 2020		March 31, 2020
	\|-------------------- (Unaudited) --------------------\|
Interest income:
Loans	$	77,908	$	84,997	$	89,944
Debt securities	5,355		5,539		6,772
Equity investments and other	1,611		2,026		1,491
Total interest income	84,874		92,562		98,207
Interest expense:
Deposits	8,496		10,679		13,936
Borrowed funds	2,774		4,032		4,626
Total interest expense	11,270		14,711		18,562
Net interest income	73,604		77,851		79,645
Credit loss (benefit) expense	(620)		4,072		9,969
Net interest income after credit loss (benefit) expense	74,224		73,779		69,676
Other income:
Bankcard services revenue	3,052		3,098		2,481
Trust and asset management revenue	599		492		515
Fees and service charges	3,737		3,950		4,873



Net gain on sales of loans	1,916		6,348		173
Net gain on equity investments	8,287		24,487		155
Net (loss) gain from other real estate operations	(8)		23		(150)
Income from bank owned life insurance	1,415		1,798		1,575
Commercial loan swap income	1,111		116		4,050
Other	726		308		25
Total other income	20,835		40,620		13,697
Operating expenses:
Compensation and employee benefits	28,366		27,323		29,885
Occupancy	5,061		4,968		5,276
Equipment	1,578		1,938		1,943
Marketing	434		632		769
Federal deposit insurance and regulatory assessments	1,864		1,859		667
Data processing	4,031		4,624		4,177
Check card processing	1,372		1,507		1,276
Professional fees	2,837		3,908		2,302
Other operating expense	3,353		4,768		3,802
FHLB advance prepayment fees	—		13,333		—
Amortization of core deposit intangible	1,395		1,526		1,578
Branch consolidation expense	1,011		3,336		2,594
Merger related expenses	381		1,194		8,527
Total operating expenses	51,683		70,916		62,796
Income before provision for income taxes	43,376		43,483		20,577
Provision for income taxes	10,679		10,419		4,044
Net income	32,697		33,064		16,533
Dividends on preferred shares	1,004		1,004		—
Net income available to common stockholders	$	31,693	$	32,060	$	16,533
Basic earnings per share	$	0.53	$	0.53	$	0.28
Diluted earnings per share	$	0.53	$	0.54	$	0.27
Average basic shares outstanding	59,840		59,961		59,876
Average diluted shares outstanding	60,101		60,057		60,479


LOANS RECEIVABLE			At
			March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Commercial:
Commercial and industrial			$	498,245	$	470,656	$	599,188	$	910,762	$	502,760
Commercial real estate - owner-occupied			1,066,351		1,145,065		1,176,529		1,199,742		1,220,983
Commercial real estate - investor			3,804,351		3,491,464		3,453,276		3,449,160		3,331,662
Total commercial			5,368,947		5,107,185		5,228,993		5,559,664		5,055,405
Consumer:
Residential real estate			2,189,348		2,309,459		2,407,178		2,426,277		2,458,641

Home equity loans and lines			267,591		285,016		301,712		320,627		335,624
Other consumer			46,651		54,446		63,095		71,721		82,920
Total consumer			2,503,590		2,648,921		2,771,985		2,818,625		2,877,185
Total loans			7,872,537		7,756,106		8,000,978		8,378,289		7,932,590

Deferred origination costs (fees), net			8,029		9,486		(1,238)		(4,300)		10,586
Allowance for loan credit losses			(59,976)		(60,735)		(56,350)		(38,509)		(29,635)
Loans receivable, net			$	7,820,590	$	7,704,857	$	7,943,390	$	8,335,480	$	7,913,541
Mortgage loans serviced for others			$	74,037	$	95,789	$	88,210	$	101,840	$	51,399
	At March 31, 2021 Average Yield
Loan pipeline (1):
Commercial	3.76	%	$	154,946	$	210,024	$	154,700	$	169,093	$	293,820
Residential real estate	3.15		178,352		151,152		212,107		181,800		223,032
Home equity loans and lines	3.96		11,031		6,630		10,301		8,282		8,429
Total	3.45	%	$	344,329	$	367,806	$	377,108	$	359,175	$	525,281

(3)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, the sale of under-performing commercial loans of $4.9 million for the three months ended June 30, 2020, and the sale of under-performing residential loans of $4.0 million and commercial loans of $5.1 million for the three months ended March 31, 2020.


ASSET QUALITY	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Non-performing loans held-for-investment:
Commercial and industrial	$	1,616		$	1,551		$	586		$	1,586		$	207
Commercial real estate - owner-occupied	11,676			13,054			11,365			4,582			4,219
Commercial real estate - investor	12,366			10,660			2,978			5,274			3,384
Residential real estate	6,398			8,642			11,518			6,568			5,920
Home equity loans and lines	2,072			2,503			3,448			3,034			2,533

Total non-performing loans held-for-investment	34,128			36,410			29,895			21,044			16,263
Non-performing loans held-for-sale	—			—			67,489			—			—
Other real estate owned	106			106			106			248			484
Total non-performing assets	$	34,234		$	36,516		$	97,490		$	21,292		$	16,747
PCD loans (1)	$	44,421		$	48,488		$	56,422		$	61,694		$	59,783
Delinquent loans 30 to 89 days	$	16,477		$	34,683		$	13,753		$	13,640		$	48,905
Troubled debt restructurings:
Non-performing (included in total non-performing loans above)	$	4,785		$	5,158		$	9,866		$	6,189		$	6,249
Performing	11,466			12,009			12,777			16,365			16,102
Total troubled debt restructurings	$	16,251		$	17,167		$	22,643		$	22,554		$	22,351
Allowance for loan credit losses	$	59,976		$	60,735		$	56,350		$	38,509		$	29,635
Allowance for loan credit losses as a percent of total loans receivable (2)	0.76		%	0.78		%	0.70		%	0.46		%	0.37		%
Allowance for loan credit losses as a percent of total non-performing loans held-for-investment	175.74			166.81			188.49			182.99			182.22
Non-performing loans held-for-investment as a percent of total loans receivable	0.43			0.47			0.37			0.25			0.21
Non-performing assets as a percent of total assets	0.30			0.32			0.84			0.19			0.16


NET RECOVERIES (CHARGE-OFFS)	For the Three Months Ended
	March 31, 2021		December 31, 2020				September 30, 2020				June 30, 2020		March 31, 2020
Net recoveries (charge-offs):
Loan charge-offs	$	(356)	$	(3,220)			$	(15,411)			$	(169)	$	(1,384)
Recoveries on loans	636		278				416				401		230
Net loan recoveries (charge-offs)	$	280	$	(2,942)		(1)	$	(14,995)		(2)	$	232	$	(1,154)		(3)
Net loan recoveries (charge-offs) to average total loans (annualized)	NM*		0.15		%		0.71		%		NM*		0.06		%
Net loan recoveries (charge-offs) detail:
Commercial	$	126	$	(775)			$	(14,801)			$	30	$	59
Residential real estate	(203)		(1,731)				314				212		(1,112)
Home equity loans and lines	352		(451)				(490)				(3)		(36)
Other consumer	5		15				(18)				(7)		(65)
Net loan recoveries (charge-offs)	$	280	$	(2,942)		(1)	$	(14,995)		(2)	$	232	$	(1,154)		(3)


	For the Three Months Ended
	March 31, 2021						December 31, 2020						March 31, 2020
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost		Average Balance		Interest		Average Yield/ Cost		Average Balance		Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	1,138,911	$	277	0.10	%	$	1,223,472	$	341	0.11	%	$	63,726	$	342	2.16	%
Securities (1)	1,311,683		6,689		2.07		1,209,543		7,224		2.38		1,186,535		7,921		2.68
Loans receivable, net (2)
Commercial	5,127,940		53,670		4.24		5,271,633		58,776		4.44		4,960,991		59,875		4.85
Residential real estate	2,327,838		20,069		3.45		2,420,494		21,530		3.56		2,473,410		24,628		3.98
Home equity loans and lines	275,943		3,523		5.18		293,746		3,930		5.32		339,003		4,070		4.83
Other consumer	50,964		646		5.14		58,174		761		5.20		87,478		1,371		6.30
Allowance for loan credit losses, net of deferred loan fees	(52,887)		—		—		(51,682)		—		—		(10,220)		—		—
Loans receivable, net	7,729,798		77,908		4.09		7,992,365		84,997		4.23		7,850,662		89,944		4.61
Total interest-earning assets	10,180,392		84,874		3.38		10,425,380		92,562		3.53		9,100,923		98,207		4.34
Non-interest-earning assets	1,259,109						1,322,112						1,231,886
Total assets	$	11,439,501					$	11,747,492					$	10,332,809
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,711,976	4,311		0.47	%	$	3,601,814	4,836		0.53	%	$	2,807,793	$	5,132	0.74	%
Money market	757,634		367		0.20		766,866		586		0.30		614,062		1,040		0.68
Savings	1,522,603		179		0.05		1,489,853		240		0.06		1,403,338		1,555		0.45
Time deposits	1,221,123		3,639		1.21		1,437,770		5,017		1.39		1,459,348		6,209		1.71
Total	7,213,336		8,496		0.48		7,296,303		10,679		0.58		6,284,541		13,936		0.89
FHLB Advances	—		—		—		204,880		779		1.51		631,329		2,824		1.80
Securities sold under agreements to repurchase	129,444		95		0.30		143,385		154		0.43		82,105		95		0.47
Other borrowings	228,368		2,679		4.76		242,030		3,099		5.09		118,851		1,707		5.78
Total borrowings	357,812		2,774		3.14		590,295		4,032		2.72		832,285		4,626		2.24
Total interest-bearing liabilities	7,571,148		11,270		0.60		7,886,598		14,711		0.74		7,116,826		18,562		1.05
Non-interest-bearing deposits	2,212,273						2,209,532						1,687,582
Non-interest-bearing liabilities	160,500						176,274						113,477
Total liabilities	9,943,921						10,272,404						8,917,885
Stockholders’ equity	1,495,580						1,475,088						1,414,924
Total liabilities and equity	$	11,439,501					$	11,747,492					$	10,332,809
Net interest income			$	73,604					$	77,851					$	79,645
Net interest rate spread (3)					2.78	%					2.79	%					3.29	%
Net interest margin (4)					2.93	%					2.97	%					3.52	%
Total cost of deposits (including non-interest-bearing deposits)					0.37	%					0.45	%					0.70	%


	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
Selected Financial Condition Data:
Total assets	$	11,577,472	$	11,448,313	$	11,651,297	$	11,345,365	$	10,489,074
Debt securities available-for-sale, at estimated fair value	268,511		183,302		169,634		153,239		153,738
Debt securities held-to-maturity, net of allowance for securities credit losses	1,082,326		937,253		871,688		867,959		914,255
Equity investments, at estimated fair value	50,159		107,079		63,846		13,830		14,409
Restricted equity investments, at cost	52,199		51,705		67,505		68,091		81,005
Loans receivable, net of allowance for loan credit losses	7,820,590		7,704,857		7,943,390		8,335,480		7,913,541

Deposits	9,502,812		9,427,616		9,283,288		8,967,754		7,892,067
Federal Home Loan Bank advances	—		—		343,452		343,392		825,824
Securities sold under agreements to repurchase and other borrowings	362,641		363,925		389,764		399,661		210,388
Stockholders’ equity	1,498,719		1,484,130		1,461,714		1,476,434		1,409,834


	For the Three Months Ended,
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
Selected Operating Data:
Interest income	$	84,874	$	92,562	$	92,962	$	95,877	$	98,207
Interest expense	11,270		14,711		16,174		17,210		18,562
Net interest income	73,604		77,851		76,788		78,667		79,645
Credit loss (benefit) expense	(620)		4,072		35,714		9,649		9,969
Net interest income after credit loss (benefit) expense	74,224		73,779		41,074		69,018		69,676
Other income (excluding net gain (loss) on equity investments and gain on sale of PPP loans)	12,548		11,032		11,755		11,430		13,697
Net gain (loss) on equity investments	8,287		24,487		(3,576)		—		—
Gain on sale of PPP loans	—		5,101		—		—		—
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses)	50,291		53,053		52,801		51,075		51,675
FHLB advance prepayment fees	—		13,333		—		924		—
Branch consolidation expense	1,011		3,336		830		863		2,594
Merger related expenses	381		1,194		3,156		3,070		8,527
Income (loss) before provision (benefit) for income taxes	43,376		43,483		(7,534)		24,516		20,577
Provision (benefit) for income taxes	10,679		10,419		(2,608)		5,878		4,044
Net income (loss)	$	32,697	$	33,064	$	(4,926)	$	18,638	$	16,533
Net income (loss) available to common stockholders	$	31,693	$	32,060	$	(6,019)	$	18,638	$	16,533
Diluted earnings (loss) per share	$	0.53	$	0.54	$	(0.10)	$	0.31	$	0.27
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	3,650	$	6,186	$	4,364	$	5,536	$	5,533


	At or For the Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
Selected Financial Ratios and Other Data(1):
Performance Ratios (Annualized):
Return on average assets (2)	1.12	%	1.09	%	(0.21)	%	0.67	%	0.64	%
Return on average tangible assets (2) (3)	1.18		1.14		(0.22)		0.71		0.68
Return on average stockholders’ equity (2)	8.59		8.65		(1.61)		5.16		4.70
Return on average tangible stockholders’ equity (2) (3)	13.22		13.43		(2.51)		8.10		7.50
Stockholders’ equity to total assets	12.95		12.96		12.55		13.01		13.44
Tangible stockholders’ equity to tangible assets (3)	8.83		8.79		8.41		8.77		8.85
Tangible common equity to tangible assets (3)	8.33		8.28		7.91		8.25		8.85
Net interest rate spread	2.78		2.79		2.77		3.02		3.29
Net interest margin	2.93		2.97		2.97		3.24		3.52
Operating expenses to average assets (2)	1.83		2.40		1.94		2.02		2.44
Efficiency ratio (2) (4)	54.73		59.86		66.83		62.08		67.28
Loans to deposits	82.84		82.27		86.19		93.43		100.51


	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Trust and Asset Management:
Wealth assets under administration	$	274,172		$	245,175		$	232,292		$	224,042		$	173,856
Nest Egg	101,701			93,237			80,472			57,383			43,528
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 period	24.84			24.57			24.21			24.47			23.38
Tangible common equity per common share at end of period (3)	15.26			14.98			14.58			14.79			14.62
Common shares outstanding at end of period	60,329,504			60,392,043			60,378,120			60,343,077			60,311,717
Preferred shares outstanding at end of period	57,370			57,370			57,370			57,370			—
Number of full-service customer facilities:	62			62			62			62			75
Quarterly Average Balances
Total securities	$	1,311,683		$	1,209,543		$	1,112,174		$	1,130,779		$	1,186,535
Loans receivable, net	7,729,798			7,992,365			8,350,797			8,295,622			7,850,662
Total interest-earning assets	10,180,392			10,425,380			10,268,834			9,780,417			9,100,923
Total assets	11,439,501			11,747,439			11,621,969			11,114,586			10,332,809
Interest-bearing transaction deposits	5,992,213			5,858,533			5,425,392			5,065,069			4,825,193
Time deposits	1,221,123			1,437,770			1,606,632			1,623,890			1,459,348
Total borrowed funds	357,812			590,295			735,035			828,928			832,285
Total interest-bearing liabilities	7,571,148			7,886,598			7,767,059			7,517,887			7,116,826
Non-interest bearing deposits	2,212,273			2,209,532			2,209,241			2,018,044			1,687,582
Stockholders’ equity	1,495,580			1,475,088			1,482,682			1,453,658			1,414,924
Total deposits	9,425,609			9,505,835			9,241,265			8,707,003			7,972,123
Quarterly Yields
Total securities	2.07		%	2.38		%	2.43		%	2.64		%	2.68		%
Loans receivable, net	4.09			4.23			4.09			4.28			4.61
Total interest-earning assets	3.38			3.53			3.60			3.94			4.34
Interest-bearing transaction deposits	0.33			0.38			0.40			0.47			0.64
Time deposits	1.21			1.39			1.45			1.58			1.71
Total borrowed funds	3.14			2.72			2.60			2.38			2.24
Total interest-bearing liabilities	0.60			0.74			0.83			0.92			1.05
Net interest spread	2.78			2.79			2.77			3.02			3.29
Net interest margin	2.93			2.97			2.97			3.24			3.52
Total deposits	0.37			0.45			0.49			0.57			0.70


	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Core Earnings:
Net income (loss) available to common stockholders (GAAP)	$	31,693		$	32,060		$	(6,019)		$	18,638		$	16,533
Add (less) non-recurring and non-core items:
Merger related expenses	381			1,194			3,156			3,070			8,527
Branch consolidation expenses	1,011			3,336			830			863			2,594
Net (gain) loss on equity investments	(8,287)			(24,487)			3,576			—			—
FHLB advance prepayment fees	—			13,333			—			924			—
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 expense (benefit) on items	1,666			2,832			(1,809)			(1,190)			(3,121)
Core earnings (loss) (Non-GAAP)	$	26,464		$	23,167		$	(266)		$	22,305		$	26,980
Core diluted earnings (loss) per share	$	0.44		$	0.39		$	—		$	0.37		$	0.45

Core Ratios (Annualized):
Return on average assets	0.94		%	0.78		%	(0.01)		%	0.81		%	1.05		%
Return on average tangible assets	0.98			0.82			(0.01)			0.85			1.11
Return on average tangible stockholders’ equity	11.04			9.71			(0.11)			9.69			12.25
Efficiency ratio	58.37			59.69			59.63			56.69			55.36


	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Total stockholders’ equity	$	1,498,719		$	1,484,130		$	1,461,714		$	1,476,434		$	1,409,834
Less:
Goodwill	500,319			500,319			500,849			501,472			500,093
Core deposit intangible	22,273			23,668			25,194			26,732			28,276

Tangible stockholders’ equity	$	976,127		$	960,143		$	935,671		$	948,230		$	881,465

Total assets	$	11,577,472		$	11,448,313		$	11,651,297		$	11,345,365		$	10,489,074
Less:
Goodwill	500,319			500,319			500,849			501,472			500,093
Core deposit intangible	22,273			23,668			25,194			26,732			28,276
Tangible assets	$	11,054,880		$	10,924,326		$	11,125,254		$	10,817,161		$	9,960,705
Tangible stockholders’ equity to tangible assets	8.83		%	8.79		%	8.41		%	8.77		%	8.85		%


	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Total stockholders’ equity	$	1,498,719		$	1,484,130		$	1,461,714		$	1,476,434		$	1,409,834
Less:
Goodwill	500,319			500,319			500,849			501,472			500,093
Core deposit intangible	22,273			23,668			25,194			26,732			28,276
Preferred stock	55,527			55,527			55,544			55,711			—
Tangible common equity	$	920,600		$	904,616		$	880,127		$	892,519		$	881,465

Total assets	$	11,577,472		$	11,448,313		$	11,651,297		$	11,345,365		$	10,489,074
Less:
Goodwill	500,319			500,319			500,849			501,472			500,093
Core deposit intangible	22,273			23,668			25,194			26,732			28,276
Tangible assets	$	11,054,880		$	10,924,326		$	11,125,254		$	10,817,161		$	9,960,705
Tangible common equity to tangible assets	8.33		%	8.28		%	7.91		%	8.25		%	8.85		%


	For the Three Months Ended
	March 31, 2021					December 31, 2020			September 30, 2020		June 30, 2020			March 31, 2020
	Average Yield
Loan originations:
Commercial	3.21	%	$	547,591	(2)	$	173,715		$	187,747	$	216,979	(2)	$	266,882
Residential real estate	3.10		189,942			222,780			219,325		242,137			148,675
Home equity loans and lines	4.14		10,278			13,435			10,966		12,128			10,666
Total	3.20	%	$	747,811		$	409,930		$	418,038	$	471,244		$	426,223
Loans sold			$	67,500		$	56,126	(3)	$	56,722	$	104,600	(3)	$	7,500	(3)


DEPOSITS	At
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Type of Account
Non-interest-bearing	$	2,417,935	$	2,133,195	$	2,240,799	$	2,161,766	$	1,783,216
Interest-bearing checking	3,623,132		3,646,866		3,317,296		3,022,887		2,647,487
Money market deposit	782,459		783,521		691,872		680,199		620,145
Savings	1,568,528		1,491,251		1,471,554		1,456,931		1,420,628
Time deposits	1,110,758		1,372,783		1,561,767		1,645,971		1,420,591
	$	9,502,812	$	9,427,616	$	9,283,288	$	8,967,754	$	7,892,067


						Press Release