NASDAQ: OCFC

1

OceanFirst Financial Corp.

John R. Garbarino, Chairman, President & CEO

Michael J. Fitzpatrick, Executive Vice President & CFO

INVESTOR PRESENTATION

NOVEMBER 2006

Exhibit 99.1

NASDAQ: OCFC

2

OceanFirst Financial Corp.

This

presentation

contains

certain

forward-looking

statements

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”,

or

similar

expressions.

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

the

subsidiaries

include,

but

are

not

limited

to,

changes

in

interest

rates,

general

economic

conditions,

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

product,

deposit

flows,

competition,

demand

for

financial

services

in

the

Company’s

market

area

and

accounting

principles

and

guidelines.

These

risks

and

uncertainties

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.

NASDAQ: OCFC

3

OceanFirst Financial Today

$2.1 Billion in Assets –

19

19 OceanFirst Bank branches within a tightly

defined market area and 2 satellite loan production offices

Columbia Home Loans, LLC. (CHL) –

wholly owned mortgage

banking subsidiary headquartered in Westchester County, New York

with offices in the greater NYC metropolitan area

Transitioning the Bank’s balance sheet to reduce a historical over-

reliance on CD funding and residential mortgage portfolio lending

Growing revenue and non-interest income through balance sheet

expansion and composition change, maturity of new business lines

and continual product line expansion

Responding to the Economic Environment, Governance, Compliance

& Risk Management challenges of the day

Holding Company for the 104 year old financial services firm serving  

the community banking needs of the attractive Central New Jersey  

Shore growth market between the major metropolitan areas of

New 

York City and Philadelphia

NASDAQ: OCFC

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Attractive Market Area

Attractive Market Area

NASDAQ: OCFC

5

Ocean County –

Ocean County –

Fastest Growing County in NJ

Fastest Growing County in NJ

558,000 people in Ocean County in 2005

558,000 people in Ocean County in 2005

•

•

9.3% increase since 2000

9.3% increase since 2000

•

•

Outpacing NJ (3.6% increase)

Outpacing NJ (3.6% increase)

•

•

Outpacing US (5.3% increase)

Outpacing US (5.3% increase)

$52,065 Ocean County median household income in 2005

$52,065 Ocean County median household income in 2005

•

•

12.1% increase since 2000

12.1% increase since 2000

83% Home Ownership in Ocean County

83% Home Ownership in Ocean County

•

•

Outpacing NJ (65%)

Outpacing NJ (65%)

•

•

Outpacing US (66%)

Outpacing US (66%)

15 OceanFirst branches currently serving Ocean County

15 OceanFirst branches currently serving Ocean County

•

•

39,507 OceanFirst customer households with average

39,507 OceanFirst customer households with average

deposit balances of $28,279

deposit balances of $28,279

Source: US Census Bureau

OceanFirst Market Wiz

NASDAQ: OCFC

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Ocean County Deposit Market Share

Ocean County Deposit Market Share

Total

Total

Average

Average

# of 

# of 

Deposits

Deposits

Branch

Branch

Market

Market

Bank

Bank

Branches

Branches

(000)

(000)

Size (000)

Size (000)

Share %

Share %

Commerce

Commerce

17

17

$1,607,426

$1,607,426

$  94,554

$  94,554

14.5

14.5

Wachovia

Wachovia

31

31

$1,544,740

$1,544,740

$  49,830

$  49,830

13.9

13.9

Hudson City Savings

Hudson City Savings

14

14

$1,482,195

$1,482,195

$105,871

$105,871

13.4

13.4

OceanFirst

OceanFirst

15

15

$1,166,196

$1,166,196

$  77,746

$  77,746

10.5

10.5

Bank of America

Bank of America

41

41

$1,140,420

$1,140,420

$  27,815

$  27,815

10.3

10.3

Sovereign

Sovereign

28

28

$1,092,357

$1,092,357

$  39,013

$  39,013

9.9

9.9

Source:  Sheshunoff

–

data as of June 30, 2005

NASDAQ: OCFC

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Growth Opportunities in Market

Growth Opportunities in Market

3 New Branches Committed

Little Egg Harbor

Freehold (2)

Wall (2)

Many More Opportunities Ahead

e.g. Jackson Area (2)

•

100 Square miles

•

Population 42,816

•

10 Year Population Growth = 28.8%

•

Median Household Income = $65,218

•

10 Year Median Income Increase = 45.9%

•

Median Age 35 vs. 40 in Ocean County

Source:

US

Census

Bureau

-

2000

NASDAQ: OCFC

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Ten Years Delivering Shareholder Value

9/30/2006

12/31/1996

CAGR

Total Loans

$1,714,760,000

$  690,306,000

9.8%

Core Deposits

825,158,000

317,070,000

10.3%

Last 12 Months         

Year Ended

Sept. 30, 2006

Dec. 31, 1997

CAGR

EPS

$1.58

$.59

11.9%

Annual Dividend

.80

.27

13.2%

ROE

14.1%

6.0%

10.2%

Fee and Service Charge Income

$10,313,000

$1,376,000

25.8%

Average Annual/Total

Shareholder Return

(1996 –

2006)

15.6%

NASDAQ: OCFC

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Current Plan Execution Challenges

Current Plan Execution Challenges

Flat to inverted yield curve

Flat to inverted yield curve

Aggressive CD pricing dominating consumer choice

Aggressive CD pricing dominating consumer choice

Margin pressure from deposit preference shift

Margin pressure from deposit preference shift

Mortgage banking encounters most difficult          

Mortgage banking encounters most difficult          

operating environment in last 10 years

operating environment in last 10 years

Market relaxation of lending standards at wrong time

Market relaxation of lending standards at wrong time

make growth difficult for those who persevere

make growth difficult for those who persevere

Consequently, EPS growth limited to single digits

Consequently, EPS growth limited to single digits

NASDAQ: OCFC

10

0

200

400

600

800

1000

1200

1400

1600

Core Deposits

CD's

Core Deposit Growth has Stalled -

Core Deposit Growth has Stalled -

2006

2006

At December 31, unless otherwise indicated.  Core deposits include all deposits other

than certificates.

NASDAQ: OCFC

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Commercial Loans Have Grown –

Commercial Loans Have Grown –

Stabilized 2006

Stabilized 2006

At December 31 unless otherwise indicated.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Commercial

Mortgage and Consumer

NASDAQ: OCFC

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Credit

Risk

Aided

by

Portfolio

Characteristics

Commercial Lending

•

Diversified, low risk $350 million portfolio

Commercial real estate -

86%    $598,000 average

C & I -

14%

$87,000 average

Only 4 loans between $5 million and $10 million

Limited exposure to residential construction lending

•

No large, speculative subdivisions

Strong credit quality indicators through 3Q 06

•

Non-performing loans represent 21 bps total loans receivable

•

Net charge-offs of only $150,000

•

Net charge-offs averaged only 3 bps of net loans over past 9 years

NASDAQ: OCFC

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Business Plan Targets Need to Reset

Business Plan Targets Need to Reset

Commercial/Consumer Loans Mix

Commercial/Consumer Loans Mix

30%

30%

38%

38%

Revenue Mix (percent of total revenue)

Revenue Mix (percent of total revenue)

•

•

Mortgage Banking

Mortgage Banking

14%

14%

?

?

•

•

Fee and Service Charge

Fee and Service Charge

13%

13%

17%

17%

With Balance Sheet growth and transformation limited in this

With Balance Sheet growth and transformation limited in this

environment –

environment –

share repurchases continue to support EPS. 

share repurchases continue to support EPS. 

Target continues to be to restore double digit growth.

Target continues to be to restore double digit growth.

Current

Current

2009

2009

Core Deposit Mix

Core Deposit Mix

60%

60%

70%

70%

NASDAQ: OCFC

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Mortgage

Mortgage

Banking

Banking

–

–

6

6

Year

Year

Cyclicality

Cyclicality

CHL Quarterly EPS Contribution

-0.06

-0.04

-0.02

0.00

0.02

0.04

0.06

0.08

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

2001

2002

2003

2004

2005

2006

$

NASDAQ: OCFC

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Other Non-Interest Income Initiatives

Largest reverse mortgage originator headquartered in NJ,

one of a handful of select, nationwide FNMA seller/servicers

•

Expected to contribute $1.0 million in fee income in 2006 and  

$1.2 million in 2007

Trust Service fees continue to grow, contribute to bottom line

•

$850,000 in 2006, $1,050,000 in 2007

Internalizing the sale of non-insured alternative investment

products currently outsourced to third party provider

•

Income expected to increase from $1.0 million in 2006 to

$1.3 million in 2007

Title insurance joint venture

•

Leveraging the Company’s loan production capability.  Expected to

provide annual net fee income to the Bank of $120,000 in 2006 and

$175,000 in 2007

NASDAQ: OCFC

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0

2000

4000

6000

8000

10000

12000

14000

16000

18000

0

5

10

15

20

25

Cumulative Repurchases

Capital Ratio

Capital

ratios

are

as

of

December

31

unless

otherwise

indicated.

Share

repurchases are for the year ended December 31 unless otherwise indicated.

Share Repurchase Plans

Share Repurchase Plans

NASDAQ: OCFC

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Repurchase Program Supporting EPS Growth

Repurchase Program Supporting EPS Growth

Repurchased 16.8 million shares in total; 62% of original issue

Repurchased 16.8 million shares in total; 62% of original issue

Thirteenth common stock repurchase program announced in July

Thirteenth common stock repurchase program announced in July

2006 for an additional 5% (615,883) of outstanding shares

2006 for an additional 5% (615,883) of outstanding shares

Currently accretive to EPS by 3%

Currently accretive to EPS by 3%

•

•

Pro-forma capital ratio declines to 6.2% at December 31, 2007      

Pro-forma capital ratio declines to 6.2% at December 31, 2007      

from 6.6% at September 30, 2006

from 6.6% at September 30, 2006

Current program funded through the issuance of Tier II Capital

Current program funded through the issuance of Tier II Capital

•

•

$5.0 million of subordinated debt issued in 2005

$5.0 million of subordinated debt issued in 2005

•

•

$12.5 million of trust preferred securities issued during 2006

$12.5 million of trust preferred securities issued during 2006

•

•

Issuance of an additional $12.5 million of Tier II Capital, as necessary

Issuance of an additional $12.5 million of Tier II Capital, as necessary

2006

2006

EPS

EPS

Growth

Growth

Returns

Returns

–

–

albeit

albeit

at

at

modest

modest

rates

rates

NASDAQ: OCFC

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In this Environment……Managing Carefully

In this Environment……Managing Carefully

Enterprise-wide Risk Management

Enterprise-wide Risk Management

Exercise discipline/restraint in growth initiatives

Exercise discipline/restraint in growth initiatives

Rationalize Mortgage Banking business line

Rationalize Mortgage Banking business line

Take what the market gives without forcing

Take what the market gives without forcing

Issue Tier II Capital to support share repurchases

Issue Tier II Capital to support share repurchases

Coming out of this Environment…..

Coming out of this Environment…..

Assuming

Assuming

the

the

Fed

Fed

is

is

done,

done,

and

and

the

the

yield

yield

curve

curve

reverts

reverts

NASDAQ: OCFC

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Retail Deposit Funding Must First Be Restored

Disciplined de novo branching and                    

core deposit generation

•

Over 10 years, 11 branches were opened                      

with an average core deposit mix of 68%

Current branch activity in our growth market

•

Barnegat branch opened in May 2006

•

Whiting branch was relocated to a more convenient,

prominent location in July 2006

•

New Little Egg Harbor branch opening in November 2006

•

New additional branches in Wall and Freehold     

scheduled to open mid ‘07

19 Branches within a tightly defined footprint

provide significant presence, market share

NASDAQ: OCFC

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Business Plan Imperatives

Focus on disciplined de novo branch and core account

development to support the margin, drive asset/revenue growth

Target commercial lending as the focus of portfolio growth,

improving the loan portfolio mix

Grow non-interest income (with or without CHL) a key driver of          

top-line revenue through maturation of business initiatives

Improve operating efficiency through both revenue enhancement  

and expense control

Deliver all financial services within the Bank’s existing geographic

market under the strong sales, service and credit cultures

•

Capitalizing on the unique advantage of being the local community

service minded alternative to mega-banks

A challenging return to double-digit EPS growth rates

NASDAQ: OCFC

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Building Additional Shareholder Value

In the long run, we hope you agree the following

In the long run, we hope you agree the following

undoubtedly create value for the long term OCFC

undoubtedly create value for the long term OCFC

investor:

investor:

•

Enterprise-wide Risk Management supports OceanFirst

credibility to preserve and build value in this environment

•

Low Risk, uncomplicated business plan to deliver earnings

growth in an improved economic environment

•

Attractive Cash Dividend and ongoing share repurchases 

proactively manage capital and support EPS

•

Franchise Value is enhanced in a most attractive               

Central New Jersey Shore Market

•

Strong Total Shareholder Returns are restored                  

for the OCFC investor

NASDAQ: OCFC

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Thank you for your

Thank you for your

interest in

interest in

OceanFirst

OceanFirst

Financial Corp.

Financial Corp.