Exhibit

RED BANK, NEW JERSEY, October 24, 2019…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), today announced that net income was $25.0 million, or $0.49 per diluted share, for the three months ended September 30, 2019, as compared to $24.1 million, or $0.50 per diluted share, for the corresponding prior year period. For the nine months ended September 30, 2019, net income was $65.1 million, or $1.28 per diluted share, as compared to $45.2 million, or $0.95 per diluted share, for the corresponding prior year period.

The results of operations for the three months ended September 30, 2019 include merger related expenses, branch consolidation expenses and non-recurring professional fees, which decreased net income, net of tax benefit, by $2.6 million. The results of operations for the nine months ended September 30, 2019 include merger related expenses, branch consolidation expenses, non-recurring professional fees, and compensation expense due to the retirement of an executive officer, which decreased net income, net of tax benefit, by $14.0 million. Excluding these items, core earnings for the three and nine months ended September 30, 2019 were $27.5 million, or $0.54 per diluted share, and $79.1 million, or $1.56 per diluted share, respectively. (Please refer to the Non-GAAP Reconciliation table at the end of this document for

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to see that our organic expansion efforts in New York and Philadelphia are helping us grow the business. This strengthening organic growth helped deliver record quarterly core earnings of $27.5 million and positions us well for the fourth quarter and into 2020.” Mr. Maher added, “During the quarter, the Company announced plans to acquire Two River Bancorp and Country Bank Holding Company, Inc. We continue to make progress with the acquisition process and anticipate both closings in the first quarter of 2020.”

Net income for the three months ended September 30, 2019, was $25.0 million, or $0.49 per diluted share, as compared to $24.1 million, or $0.50 per diluted share, for the corresponding prior year period. Net income for the nine months ended September 30, 2019, was $65.1 million, or $1.28 per diluted share, as compared to $45.2 million, or $0.95 per diluted share, for the corresponding prior year period. Net income for the three months ended September 30, 2019 included merger related expenses, branch consolidation expenses, and non-recurring professional fees which decreased net income, net of tax benefit, by $2.6 million. Net income for the nine months ended September 30, 2019 included merger related expenses, branch consolidation expenses, non-recurring professional fees, and compensation expense due to the retirement of an executive officer, which decreased net income, net of tax benefit, by $14.0 million. Net income for the three and nine months ended September 30, 2018 included merger related and branch consolidation expenses, which decreased net income, net of tax benefit, by $1.6 million and $22.9 million, respectively. Excluding these items, net income for the three and nine months ended September 30, 2019 increased over the same prior year periods, primarily due to the acquisition of Capital Bank.

assets increased by $436.6 million and $594.2 million for the three and nine months ended September 30, 2019, respectively, as compared to the same prior year periods. The averages for the three and nine months ended September 30, 2019 were favorably impacted by $363.1 million and $346.0 million, respectively, of interest-earning assets acquired from Capital Bank. Average loans receivable, net, increased by $474.2 million and $603.6 million for the three and nine months ended September 30, 2019, respectively, as compared to the same prior year periods. The increases attributable to the acquisition of Capital Bank were $269.6 million and $251.8 million, respectively. The net interest margin for the three and nine months ended September 30, 2019 decreased to 3.55% and 3.66%, respectively, from 3.67% and 3.71%, respectively, for the same prior year periods. For the three and nine months ended September 30, 2019, the cost of average interest-bearing liabilities increased to 0.98% and 0.95%, respectively, from 0.74% and 0.66%, respectively, in the corresponding prior year periods. The total cost of deposits (including non-interest bearing deposits) was 0.62% and 0.60% for the three and nine months ended September 30, 2019, respectively, as compared to 0.39% and 0.36%, respectively, in the same prior year periods.

Net interest income for the three months ended September 30, 2019, decreased by $1.4 million, as compared to the prior linked quarter, as average interest-earning assets decreased by $7.4 million. The net interest margin decreased to 3.55% for the quarter ended September 30, 2019, as compared to 3.66% for the prior linked quarter. The decrease was primarily due to decreases in purchase accounting accretion of six basis points and prepayment fees of three basis points. Excluding these items, the net interest margin decreased two basis points. The total cost of deposits (including non-interest bearing deposits) was 0.62% for the both the three months ended September 30, 2019 and June 30, 2019.

For the three and nine months ended September 30, 2019, other income increased to $11.5 million and $30.9 million, respectively, as compared to $8.3 million and $26.1 million, respectively, for the corresponding prior year periods. The increases were partly due to the impact of the Capital Bank acquisition, which added $435,000 and $991,000 to other income for the three and nine months ended September 30, 2019, respectively, as compared to the same prior year periods. Excluding the Capital Bank acquisition, the increase in other income for the three months ended September 30, 2019 was primarily due to a decrease in the loss from real estate operations of $1.5 million and an increase in derivative fee income of $1.5 million, as compared to the three months ended September 30, 2018. Excluding the Capital Bank acquisition, the increase in other income for the nine months ended September 30, 2019 was primarily due to a decrease in the loss from real estate operations of $2.7 million, an increase in derivative fee income of $2.5 million, and an increase in bankcard services of $679,000, partially offset by decreases in fees and service charges of $1.3 million, and rental income of $820,000 received primarily for January and February 2018 on the Company’s executive office.

Operating expenses increased to $43.4 million and decreased to $141.5 million for the three and nine months ended September 30, 2019, respectively, as compared to $39.5 million and $147.3 million, respectively, in the same prior year periods. Operating expenses for the three months ended September 30, 2019 included $3.2 million of merger related expenses, branch consolidation expenses, and non-recurring professional fees. Operating expenses for the nine months ended September 30, 2019 included $17.5 million of merger related expenses, branch consolidation expenses, non-recurring professional fees, and

compensation expense due to the retirement of an executive officer, as compared to $2.0 million and $28.8 million, respectively, of merger related and branch consolidation expenses, in the same prior year periods. Excluding the impact of merger related expenses, branch consolidation expenses, non-recurring professional fees, and compensation expense due to the retirement of an executive officer, the change in operating expenses over the prior year was due to the Capital Bank acquisition, which added $1.2 million and $4.5 million for the three and nine months ended September 30, 2019, respectively. Excluding the Capital Bank acquisition, the increase in operating expenses for the three months ended September 30, 2019 over the prior year period was primarily due to increases in check card processing of $803,000, professional fees of $759,000, and compensation and employee benefits expense of $550,000, partially offset by decreases in Federal Deposit Insurance Company (“FDIC”) expense of $643,000, primarily as a result of assessment credits awarded by the FDIC to banks with consolidated assets less than $10 billion, and marketing expenses of $459,000. Excluding the Capital Bank acquisition, the remaining increase in operating expenses, for the nine months ended September 30, 2019 from the prior year period, was primarily due to increases in check card processing of $1.4 million, professional fees of $1.1 million, and other operating expenses of $976,000, partially offset by decreases in compensation and employee benefits expense of $1.3 million, and FDIC expense of $1.0 million.

For the three months ended September 30, 2019, operating expenses, excluding merger related expenses, branch consolidation expenses, and non-recurring professional fees, decreased by $1.9 million from the three months ended June 30, 2019, excluding merger related expenses, branch consolidation expenses, and compensation expense due to the retirement of an executive officer. The decrease in operating expenses was primarily due to decreases in compensation and employee benefits of $1.2 million, marketing expenses of $575,000, and FDIC expense of $505,000, partially offset by an increase in professional fees of $422,000.

vendor contract. The revised contractual terms will result in future annual cost savings of 22%, or approximately $1.5 million annually, and the earnback on the contract restructuring charges is anticipated to occur over the next six months. During the fourth quarter, the Company plans to restructure its retail online and mobile banking vendor contract and expects to incur approximately $1.3 million in non-recurring professional fees. The restructured contractual terms are expected to result in an annual cost savings of 48%, or approximately $1.6 million annually, and the earnback on the contract restructuring charges is anticipated to occur over the next ten months.

The provision for income taxes was $6.3 million and $15.6 million for the three and nine months ended September 30, 2019, respectively, as compared to $5.3 million and $9.3 million, respectively, for the same prior year periods. The effective tax rate was 20.2% and 19.3% for the three and nine months ended September 30, 2019, respectively, as compared to 18.0% and 17.1%, respectively, for the same prior year periods. The lower effective tax rates in the prior year periods were primarily due to larger tax benefits from employee stock option exercises and an increase in state taxes due to revisions in the New Jersey tax code.

Total assets increased by $619.0 million, to $8.135 billion at September 30, 2019, from $7.516 billion at December 31, 2018, primarily as a result of the acquisition of Capital Bank, which added $494.7 million to total assets. Loans receivable, net, increased by $502.7 million, to $6.082 billion at September 30, 2019, from $5.579 billion at December 31, 2018, due to acquired loans of $307.8 million. As part of the acquisition of Capital Bank, the Company’s goodwill balance increased to $374.5 million at September 30, 2019, from $338.4 million at December 31, 2018. The core deposit intangible decreased to $16.6 million, from $17.0 million at December 31, 2018 due to amortization of core deposit intangible, partially offset by the increase from the acquisition of Capital Bank.

Stockholders’ equity increased to $1.145 billion at September 30, 2019, as compared to $1.039 billion at December 31, 2018. The acquisition of Capital Bank added $76.4 million to stockholders’ equity. At September 30, 2019, there were 508,986 shares available for repurchase under the Company’s stock repurchase program. For the nine months ended September 30, 2019, the Company repurchased 786,567 shares under the repurchase program at a weighted average cost of $22.95. Tangible stockholders’ equity per common share increased to $14.86 at September 30, 2019, as compared to $14.26 at December 31, 2018.

The Company’s non-performing loans increased to $17.5 million at September 30, 2019, as compared to $17.4 million at December 31, 2018. Non-performing loans do not include $13.3 million of purchased credit-impaired (“PCI”) loans acquired in the Capital Bank, Sun, Ocean Shore Holding Co. (“Ocean Shore”), Cape Bancorp, Inc. (“Cape”), and Colonial American Bank (“Colonial American”) acquisitions (“Acquisition Transactions”). The Company’s other real estate owned totaled $294,000 at September 30, 2019, as compared to $1.4 million at December 31, 2018.

At September 30, 2019, the Company’s allowance for loan losses was 0.27% of total loans, a decrease from 0.30% at December 31, 2018. These ratios exclude existing fair value credit marks of $32.8 million at September 30, 2019 on loans acquired from the Acquisition Transactions, and $31.6 million at December 31, 2018 on loans acquired from Sun, Ocean Shore, Cape and Colonial American. These loans were acquired at fair value with no related allowance for loan losses. The allowance for loan losses as a percent of total non-performing loans was 95.32% at September 30, 2019, as compared to 95.19% at December 31, 2018.

Reported amounts are presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding merger related expenses, branch consolidation expenses, non-recurring professional fees, compensation expense due to the retirement of an executive officer, and the impact to income tax expense related to the revaluation of deferred tax assets as required under Tax Reform, 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. Please refer to 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, October 25, 2019 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 10135355 from one hour after the end of the call until January 23, 2020. 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: 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, 2018, 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.



	September 30, 2019		June 30, 2019		December 31, 2018		September 30, 2018
	(Unaudited)		(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	140,901	$	148,327	$	120,792	$	148,362
Debt securities available-for-sale, at estimated fair value	127,308		123,610		100,717		100,015
Debt securities held-to-maturity, net (estimated fair value of $826,964 at September 30, 2019, $869,167 at June 30, 2019, $832,815 at December 31, 2018, and $864,173 at September 30, 2018)	819,253		863,838		846,810		883,540
Equity investments, at estimated fair value	10,145		10,002		9,655		9,519
Restricted equity investments, at cost	62,095		59,425		56,784		57,143
Loans receivable, net	6,081,938		5,943,930		5,579,222		5,543,959
Loans held-for-sale	110		—		—		732
Interest and dividends receivable	21,739		22,106		19,689		20,822
Other real estate owned	294		865		1,381		6,231
Premises and equipment, net	103,721		105,853		111,209		112,320
Bank Owned Life Insurance	236,190		235,162		222,482		221,190
Deferred tax asset	66,148		66,259		63,377		59,052
Assets held for sale	5,156		4,198		4,522		7,552
Other assets	69,033		53,276		24,101		36,094
Core deposit intangible	16,605		17,614		16,971		17,954
Goodwill	374,537		374,592		338,442		338,104
Total assets	$	8,135,173	$	8,029,057	$	7,516,154	$	7,562,589
Liabilities and Stockholders’ Equity
Deposits	$	6,220,855	$	6,187,487	$	5,814,569	$	5,854,250
Federal Home Loan Bank advances	512,149		453,646		449,383		456,806
Securities sold under agreements to repurchase with retail customers	65,067		62,086		61,760		61,044
Other borrowings	96,667		96,533		99,530		99,473
Advances by borrowers for taxes and insurance	16,230		14,817		14,066		16,654
Other liabilities	79,677		77,193		37,488		44,518
Total liabilities	6,990,645		6,891,762		6,476,796		6,532,745
Total stockholders’ equity	1,144,528		1,137,295		1,039,358		1,029,844
Total liabilities and stockholders’ equity	$	8,135,173	$	8,029,057	$	7,516,154	$	7,562,589



	For the Three Months Ended,									For the Nine Months Ended,
	September 30, 2019			June 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	\|-------------------- (Unaudited) --------------------\|									\|---------- (Unaudited) -----------\|
Interest income:
Loans	$	69,715		$	70,917		$	64,497		$	209,633		$	184,229
Mortgage-backed securities	3,761			3,946			4,105			11,748			12,087
Debt securities, equity investments and other	3,411			3,547			2,780			10,338			7,980
Total interest income	76,887			78,410			71,382			231,719			204,296
Interest expense:
Deposits	9,817			9,762			5,799			28,218			15,510
Borrowed funds	3,678			3,811			4,079			10,884			10,125
Total interest expense	13,495			13,573			9,878			39,102			25,635
Net interest income	63,392			64,837			61,504			192,617			178,661
Provision for loan losses	305			356			907			1,281			2,984
Net interest income after provision for loan losses	63,087			64,481			60,597			191,336			175,677
Other income:
Bankcard services revenue	2,658			2,679			2,425			7,622			6,717
Trust and asset management revenue	557			569			573			1,624			1,721
Fees and service charges	4,679			4,595			4,735			13,790			14,551
Net gain on sales of loans	—			7			31			15			654
Net unrealized gain (loss) on equity investments	89			133			(70		)	330			(282		)
Net loss from other real estate operations	(108		)	(121		)	(1,582		)	(235		)	(2,975		)
Income from Bank Owned Life Insurance	1,431			1,293			1,337			4,045			3,813
Other	2,237			724			836			3,743			1,880
Total other income	11,543			9,879			8,285			30,934			26,079
Operating expenses:
Compensation and employee benefits	21,276			23,704			19,694			67,394			64,189
Occupancy	4,159			4,399			4,443			13,088			13,582
Equipment	2,062			1,936			2,067			5,944			6,004
Marketing	562			1,137			1,021			2,629			2,475
Federal deposit insurance and regulatory assessments	297			802			927			1,931			2,857
Data processing	3,398			3,684			3,125			10,736			9,968
Check card processing	1,639			1,322			799			4,399			2,904
Professional fees	2,580			1,408			1,066			5,697			3,746
Other operating expense	3,902			3,882			3,366			11,153			9,928
Amortization of core deposit intangible	1,009			1,015			995			3,029			2,828
Branch consolidation expense	1,696			6,695			1,368			8,782			2,911
Merger related expenses	777			931			662			6,761			25,863
Total operating expenses	43,357			50,915			39,533			141,543			147,255
Income before provision for income taxes	31,273			23,445			29,349			80,727			54,501
Provision for income taxes	6,302			4,465			5,278			15,603			9,301
Net income	$	24,971		$	18,980		$	24,071		$	65,124		$	45,200
Basic earnings per share	$	0.50		$	0.37		$	0.50		$	1.30		$	0.97
Diluted earnings per share	$	0.49		$	0.37		$	0.50		$	1.28		$	0.95
Average basic shares outstanding	50,491			50,687			47,685			50,242			46,451
Average diluted shares outstanding	50,966			51,290			48,572			50,830			47,403

(dollars in thousands)



LOANS RECEIVABLE			At
			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Commercial:
Commercial and industrial			$	406,580		$	392,336		$	383,686		$	304,996		$	343,121
Commercial real estate - owner - occupied			787,752			771,640			802,229			740,893			735,289
Commercial real estate - investor			2,232,159			2,143,093			2,161,451			2,023,131			2,019,859
Total commercial			3,426,491			3,307,069			3,347,366			3,069,020			3,098,269
Consumer:
Residential real estate			2,234,361			2,193,829			2,162,668			2,044,523			2,020,155
Home equity loans and lines			330,446			341,972			351,303			353,609			359,094
Other consumer			98,835			109,015			116,838			121,561			74,555
Total consumer			2,663,642			2,644,816			2,630,809			2,519,693			2,453,804
Total loans			6,090,133			5,951,885			5,978,175			5,588,713			5,552,073
Deferred origination costs, net			8,441			8,180			7,360			7,086			8,707
Allowance for loan losses			(16,636		)	(16,135		)	(16,705		)	(16,577		)	(16,821		)
Loans receivable, net			$	6,081,938		$	5,943,930		$	5,968,830		$	5,579,222		$	5,543,959
Mortgage loans serviced for others			$	54,457		$	90,882		$	92,274		$	95,100		$	106,369
	At September 30, 2019 Average Yield
Loan pipeline ⁽¹⁾:
Commercial	4.70	%	$	126,578		$	212,712		$	122,325		$	129,839		$	137,519
Residential real estate	3.45		189,403			82,555			63,598			49,800			64,841
Home equity loans and lines	5.53		3,757			2,550			4,688			6,571			11,030
Total	3.97	%	$	319,738		$	297,817		$	190,611		$	186,210		$	213,390



ASSET QUALITY	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Non-performing loans:
Commercial and industrial	$	207		$	207		$	240		$	1,587		$	1,727
Commercial real estate - owner-occupied	4,537			4,818			4,565			501			511
Commercial real estate - investor	4,073			4,050			4,115			5,024			8,082
Residential real estate	5,953			5,747			8,611			7,389			6,390
Home equity loans and lines	2,683			2,974			3,364			2,914			2,529
Total non-performing loans	17,453			17,796			20,895			17,415			19,239
Other real estate owned	294			865			1,594			1,381			6,231
Total non-performing assets	$	17,747		$	18,661		$	22,489		$	18,796		$	25,470
Purchased credit-impaired (“PCI”) loans	$	13,281		$	13,432		$	16,306		$	8,901		$	9,700
Delinquent loans 30 to 89 days	$	19,905		$	20,029		$	21,578		$	25,686		$	26,691
Troubled debt restructurings:
Non-performing (included in total non-performing loans above)	$	6,152		$	6,815		$	6,484		$	3,595		$	3,568
Performing	18,977			19,314			19,690			22,877			24,230
Total troubled debt restructurings	$	25,129		$	26,129		$	26,174		$	26,472		$	27,798
Allowance for loan losses	$	16,636		$	16,135		$	16,705		$	16,577		$	16,821
Allowance for loan losses as a percent of total loans receivable ⁽¹⁾	0.27		%	0.27		%	0.28		%	0.30		%	0.30		%
Allowance for loan losses as a percent of total non-performing loans	95.32			90.67			79.95			95.19			87.43
Non-performing loans as a percent of total loans receivable	0.29			0.30			0.35			0.31			0.35
Non-performing assets as a percent of total assets	0.22			0.23			0.28			0.25			0.34



NET CHARGE-OFFS	For the Three Months Ended
	September 30, 2019			June 30, 2019				March 31, 2019			December 31, 2018				September 30, 2018
Net Charge-offs:
Loan charge-offs	$	(353	)	$	(1,138	)		$	(868	)	$	(1,133	)		$	(891	)
Recoveries on loans	549			212				376			383				114
Net loan recoveries (charge-offs)	$	196		$	(926	)	⁽¹⁾	$	(492	)	$	(750	)	⁽¹⁾	$	(777	)	⁽¹⁾
Net loan charge-offs to average total loans (annualized)	NM*			0.06		%		0.03		%	0.05		%		0.06		%
Net charge-off detail - (loss) recovery:
Commercial	$	256		$	(58	)		$	(58	)	$	(871	)		$	(246	)
Residential real estate	12			(728		)		(425		)	210				(478		)
Home equity loans and lines	(10		)	(121		)		(4		)	(62		)		(35		)
Other consumer	(62		)	(19		)		(5		)	(27		)		(18		)
Net loan recoveries (charge-offs)	$	196		$	(926	)	⁽¹⁾	$	(492	)	$	(750	)	⁽¹⁾	$	(777	)	⁽¹⁾



	For the Three Months Ended
	September 30, 2019							June 30, 2019							September 30, 2018
(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	$	40,932		$	264	2.56	%	$	67,214		$	372	2.22	%	$	37,354		$	172	1.83	%
Securities ⁽¹⁾	1,039,560			6,908		2.64		1,080,690			7,121		2.64		1,080,784			6,713		2.46
Loans receivable, net ⁽²⁾
Commercial	3,350,868			42,104		4.99		3,309,869			42,579		5.16		3,101,665			38,726		4.95
Residential	2,225,837			21,527		3.87		2,187,417			22,329		4.08		2,027,880			20,438		4.03
Home Equity	335,691			4,678		5.53		347,028			4,656		5.38		361,127			4,628		5.08
Other	104,310			1,406		5.35		113,153			1,353		4.80		52,764			705		5.30
Allowance for loan loss net of deferred loan fees	(8,381		)	—		—		(9,155		)	—		—		(9,350		)	—		—
Loans Receivable, net	6,008,325			69,715		4.60		5,948,312			70,917		4.78		5,534,086			64,497		4.62
Total interest-earning assets	7,088,817			76,887		4.30		7,096,216			78,410		4.43		6,652,224			71,382		4.26
Non-interest-earning assets	984,421							972,683							916,406
Total assets	$	8,073,238						$	8,068,899						$	7,568,630
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	2,467,879		4,311		0.69	%	$	2,504,541		4,240		0.68	%	$	2,300,270		2,313		0.40	%
Money market	597,896			1,208		0.80		631,297			1,358		0.86		578,446			680		0.47
Savings	905,605			300		0.13		915,701			301		0.13		896,682			265		0.12
Time deposits	920,032			3,998		1.72		934,470			3,863		1.66		864,264			2,541		1.17
Total	4,891,412			9,817		0.80		4,986,009			9,762		0.79		4,639,662			5,799		0.50
FHLB Advances	394,124			2,208		2.22		404,951			2,320		2.30		475,536			2,542		2.12
Securities sold under agreements to repurchase	62,296			73		0.46		62,243			64		0.41		61,336			41		0.27
Other borrowings	96,578			1,397		5.74		99,591			1,427		5.75		99,438			1,496		5.97
Total interest-bearing liabilities	5,444,410			13,495		0.98		5,552,794			13,573		0.98		5,275,972			9,878		0.74
Non-interest-bearing deposits	1,396,259							1,302,147							1,210,650
Non-interest-bearing liabilities	88,868							82,793							61,272
Total liabilities	6,929,537							6,937,734							6,547,894
Stockholders’ equity	1,143,701							1,131,165							1,020,736
Total liabilities and equity	$	8,073,238						$	8,068,899						$	7,568,630
Net interest income				$	63,392						$	64,837						$	61,504
Net interest rate spread ⁽³⁾						3.32	%						3.45	%						3.52	%
Net interest margin ⁽⁴⁾						3.55	%						3.66	%						3.67	%
Total cost of deposits (including non-interest-bearing deposits)						0.62	%						0.62	%						0.39	%



	For the Nine Months Ended
	September 30, 2019							September 30, 2018
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost		Average Balance			Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	62,543		$	1,103	2.36	%	$	48,562		$	660	1.82	%
Securities ⁽¹⁾	1,062,366			20,983		2.64		1,085,725			19,407		2.39
Loans receivable, net ⁽²⁾
Commercial	3,291,189			126,091		5.12		2,995,847			110,920		4.95
Residential	2,169,611			65,260		4.01		1,941,594			59,117		4.06
Home Equity	345,294			14,041		5.44		357,490			13,335		4.99
Other	112,162			4,241		5.06		20,796			857		5.51
Allowance for loan loss net of deferred loan fees	(9,200		)	—		—		(10,233		)	—		—
Loans Receivable, net	5,909,056			209,633		4.74		5,305,494			184,229		4.64
Total interest-earning assets	7,033,965			231,719		4.40		6,439,781			204,296		4.24
Non-interest-earning assets	960,709							877,642
Total assets	$	7,994,674						$	7,317,423
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	2,501,660		12,343		0.66	%	$	2,313,012		6,099		0.35	%
Money market	610,153			3,676		0.81		567,575			1,924		0.45
Savings	908,457			887		0.13		876,695			727		0.11
Time deposits	928,903			11,312		1.63		862,555			6,760		1.05
Total	4,949,173			28,218		0.76		4,619,837			15,510		0.45
FHLB Advances	379,786			6,367		2.24		391,956			5,954		2.03
Securities sold under agreements to repurchase	63,267			192		0.41		68,173			125		0.25
Other borrowings	98,562			4,325		5.87		93,046			4,046		5.81
Total interest-bearing liabilities	5,490,788			39,102		0.95		5,173,012			25,635		0.66
Non-interest-bearing deposits	1,303,447							1,121,695
Non-interest-bearing liabilities	75,988							55,881
Total liabilities	6,870,223							6,350,588
Stockholders’ equity	1,124,451							966,835
Total liabilities and equity	$	7,994,674						$	7,317,423
Net interest income				$	192,617						$	178,661
Net interest rate spread ⁽³⁾						3.45	%						3.58	%
Net interest margin ⁽⁴⁾						3.66	%						3.71	%
Total cost of deposits (including non-interest-bearing deposits)						0.60	%						0.36	%



	September 30,		June 30,		March 31,		December 31,		September 30,
	2019		2019		2019		2018		2018

Selected Financial Condition Data:
Total assets	$	8,135,173	$	8,029,057	$	8,092,948	$	7,516,154	$	7,562,589
Debt securities available-for-sale, at estimated fair value	127,308		123,610		122,558		100,717		100,015
Debt securities held-to-maturity, net	819,253		863,838		900,614		846,810		883,540
Equity investments, at estimated fair value	10,145		10,002		9,816		9,655		9,519
Restricted equity investments, at cost	62,095		59,425		55,663		56,784		57,143
Loans receivable, net	6,081,938		5,943,930		5,968,830		5,579,222		5,543,959
Deposits	6,220,855		6,187,487		6,290,485		5,814,569		5,854,250
Federal Home Loan Bank advances	512,149		453,646		418,016		449,383		456,806
Securities sold under agreements to repurchase and other borrowings	161,734		158,619		165,753		161,290		160,517
Stockholders’ equity	1,144,528		1,137,295		1,127,163		1,039,358		1,029,844



	For the Three Months Ended,
	September 30,		June 30,		March 31,		December 31,		September 30,
	2019		2019		2019		2018		2018
Selected Operating Data:
Interest income	$	76,887	$	78,410	$	76,422	$	72,358	$	71,382
Interest expense	13,495		13,573		12,034		10,517		9,878
Net interest income	63,392		64,837		64,388		61,841		61,504
Provision for loan losses	305		356		620		506		907
Net interest income after provision for loan losses	63,087		64,481		63,768		61,335		60,597
Other income	11,543		9,879		9,512		8,748		8,285
Operating expenses	40,884		43,289		41,827		37,794		37,503
Branch consolidation expense	1,696		6,695		391		240		1,368
Merger related expenses	777		931		5,053		1,048		662
Income before provision for income taxes	31,273		23,445		26,009		31,001		29,349
Provision for income taxes	6,302		4,465		4,836		4,269		5,278
Net income	$	24,971	$	18,980	$	21,173	$	26,732	$	24,071
Diluted earnings per share	$	0.49	$	0.37	$	0.42	$	0.55	$	0.50
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	2,769	$	3,663	$	4,027	$	3,918	$	4,036



	At or For the Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2019		2019		2019		2018		2018
Selected Financial Ratios and Other Data⁽¹⁾:

Performance Ratios (Annualized):
Return on average assets ⁽²⁾	1.23	%	0.94	%	1.10	%	1.41	%	1.26	%
Return on average stockholders’ equity ⁽²⁾	8.66		6.73		7.82		10.24		9.36
Return on average tangible stockholders’ equity ^{(2) (3)}	13.18		10.32		11.97		15.60		14.39
Stockholders’ equity to total assets	14.07		14.16		13.93		13.83		13.62
Tangible stockholders’ equity to tangible assets ⁽³⁾	9.73		9.76		9.53		9.55		9.35
Net interest rate spread	3.32		3.45		3.59		3.54		3.52
Net interest margin	3.55		3.66		3.78		3.71		3.67
Operating expenses to average assets ⁽²⁾	2.13		2.53		2.45		2.07		2.07
Efficiency ratio ^{(2) (4)}	57.86		68.14		63.97		55.37		56.65
Loans to deposits	97.77		96.06		94.89		95.95		94.70



	At or For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Trust and Asset Management:
Wealth assets under administration	$	194,137		$	199,554		$	200,130		$	184,476		$	209,796
Nest Egg	23,946			9,755			4,052			—			—
Per Share Data:
Cash dividends per common share	$	0.17		$	0.17		$	0.17		$	0.17		$	0.15
Stockholders’ equity per common share at end of period	22.57			22.24			22.00			21.68			21.29
Tangible stockholders’ equity per common share at end of period ⁽³⁾	14.86			14.57			14.32			14.26			13.93
Common shares outstanding at end of period	50,700,586			51,131,804			51,233,944			47,951,168			48,382,370
Number of full-service customer facilities:	56			60			63			59			59
Quarterly Average Balances
Total securities	$	1,039,560		$	1,080,690		$	1,067,150		$	1,037,039		$	1,080,784
Loans, receivable, net	6,008,325			5,948,312			5,767,887			5,523,745			5,534,086
Total interest-earning assets	7,088,817			7,096,216			6,914,948			6,613,807			6,652,224
Total assets	8,073,238			8,068,899			7,839,316			7,504,111			7,568,630
Interest-bearing transaction deposits	3,971,380			4,051,539			4,036,584			3,871,134			3,775,398
Time deposits	920,032			934,470			932,341			848,361			864,264
Total borrowed funds	552,998			566,785			504,498			514,628			636,310
Total interest-bearing liabilities	5,444,410			5,552,794			5,473,423			5,234,123			5,275,972
Non-interest bearing deposits	1,396,259			1,302,147			1,211,934			1,177,321			1,210,650
Stockholders’ equity	1,143,701			1,131,165			1,097,984			1,035,962			1,020,736
Total deposits	6,287,671			6,288,156			6,180,859			5,896,816			5,850,312
Quarterly Yields
Total securities	2.64		%	2.64		%	2.64		%	2.60		%	2.46		%
Loans, receivable, net	4.60			4.78			4.85			4.69			4.62
Total interest-earning assets	4.30			4.43			4.48			4.34			4.26
Interest-bearing transaction deposits	0.58			0.58			0.52			0.44			0.34
Time deposits	1.72			1.66			1.50			1.31			1.17
Borrowed funds	2.64			2.70			2.73			2.66			2.54
Total interest-bearing liabilities	0.98			0.98			0.89			0.80			0.74
Net interest spread	3.32			3.45			3.59			3.54			3.52
Net interest margin	3.55			3.66			3.78			3.71			3.67
Total deposits	0.62			0.62			0.57			0.48			0.39



	For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Core earnings:
Net income	$	24,971		$	18,980		$	21,173		$	26,732		$	24,071
Non-recurring items:
Add: Merger related expenses	777			931			5,053			1,048			662
Branch consolidation expenses	1,696			6,695			391			240			1,368
Non-recurring professional fees	750			—			—			—			—
Compensation expense due to the retirement of an executive officer	—			1,256			—			—			—
Income tax benefit related to Tax Reform	—			—			—			(1,854		)	—
Less: Income tax expense on items	(663		)	(1,867		)	(1,039		)	(130		)	(426		)
Core earnings	$	27,531		$	25,995		$	25,578		$	26,036		$	25,675
Core diluted earnings per share	$	0.54		$	0.51		$	0.51		$	0.54		$	0.53

Core ratios (Annualized):
Return on average assets	1.35		%	1.29		%	1.32		%	1.38		%	1.35		%
Return on average tangible stockholders’ equity	14.53			14.14			14.46			15.19			15.35
Efficiency ratio	53.56			56.26			56.60			53.54			53.74



	For the Nine Months Ended September 30,
	2019			2018
Core earnings:
Net income	$	65,124		$	45,200
Non-recurring items:
Add: Merger related expenses	6,761			25,863
Branch consolidation expenses	8,782			2,911
Non-recurring professional fees	750			—
Compensation expense due to the retirement of an executive officer	1,256			—
Less: Income tax expense on items	(3,569		)	(5,861		)
Core earnings	$	79,104		$	68,113
Core diluted earnings per share	$	1.56		$	1.44

Core ratios (Annualized):
Return on average assets	1.32		%	1.24		%
Return on average tangible stockholders’ equity	14.37			14.40
Efficiency ratio	55.47			57.87



	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
Total stockholders’ equity	$	1,144,528		$	1,137,295		$	1,127,163		$	1,039,358		$	1,029,844
Less:
Goodwill	374,537			374,592			375,096			338,442			338,104
Core deposit intangible	16,605			17,614			18,629			16,971			17,954
Tangible stockholders’ equity	$	753,386		$	745,089		$	733,438		$	683,945		$	673,786

Total assets	$	8,135,173		$	8,029,057		$	8,092,948		$	7,516,154		$	7,562,589
Less:
Goodwill	374,537			374,592			375,096			338,442			338,104
Core deposit intangible	16,605			17,614			18,629			16,971			17,954
Tangible assets	$	7,744,031		$	7,636,851		$	7,699,223		$	7,160,741		$	7,206,531
Tangible stockholders’ equity to tangible assets	9.73		%	9.76		%	9.53		%	9.55		%	9.35		%



	At January 31, 2019
	Capital Bank Book Value			Purchase Accounting Adjustments			Estimated Fair Value
Total Purchase Price:							$	76,834
Assets acquired:
Cash and cash equivalents	$	59,748		$	—		$	59,748
Securities	103,798			(23		)	103,775
Loans	312,320			(4,542		)	307,778
Accrued interest receivable	1,387			3			1,390
Bank Owned Life Insurance	10,460			—			10,460
Deferred tax asset	1,605			2,224			3,829
Other assets	9,384			(4,277		)	5,107
Core deposit intangible	—			2,662			2,662
Total assets acquired	498,702			(3,953		)	494,749
Liabilities assumed:
Deposits	(448,792		)	(226		)	(449,018		)
Other liabilities	(827		)	(4,188		)	(5,015		)
Total liabilities assumed	(449,619		)	(4,414		)	(454,033		)
Net assets acquired	$	49,083		$	(8,367	)	$	40,716
Goodwill recorded in the merger							$	36,118



	For the Three Months Ended
	September 30, 2019					June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
	Average Yield
Loan originations:
Commercial	4.08	%	$	315,405		$	123,882		$	172,233		$	151,851		$	136,764
Residential real estate	3.57		156,308			120,771			75,530			92,776			124,419
Home equity loans and lines	5.37		10,498			14,256			13,072			15,583			17,892
Total	3.94	%	$	482,211		$	258,909		$	260,835	⁽²⁾	$	260,210	⁽³⁾	$	279,075	⁽⁴⁾
Loans sold			$	—	⁽⁵⁾	$	403	⁽⁵⁾	$	495		$	728	⁽⁵⁾	$	1,349	⁽⁵⁾



DEPOSITS	At
	September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018		September 30, 2018
Type of Account
Non-interest-bearing	$	1,406,194	$	1,370,167	$	1,352,520	$	1,151,362	$	1,196,875
Interest-bearing checking	2,400,331		2,342,913		2,400,192		2,350,106		2,332,215
Money market deposit	593,457		642,985		666,067		569,680		584,250
Savings	901,168		909,501		922,113		877,177		887,799
Time deposits	919,705		921,921		949,593		866,244		853,111
	$	6,220,855	$	6,187,487	$	6,290,485	$	5,814,569	$	5,854,250


•	Loan and deposit growth were both strong. Record loan originations of $482.2 million provided total loan growth of $138.2 million with a solid pipeline of $319.7 million at September 30, 2019. Deposits increased $33.4 million while the cost of deposits was 0.62%, unchanged from the prior linked quarter.


•	The efficiency ratio improved to 57.9% from 68.1% in the prior linked quarter and the core efficiency ratio improved to 53.6% from 56.3% in the prior linked quarter, as the Company begins to realize the cost savings related to the integration of Capital Bank of New Jersey (“Capital Bank”).


(1)	Loan pipeline includes pending loan applications and loans approved but not funded.


(2)	Excludes purchased loans of $100.0 million for residential real estate.


(3)	Excludes purchased loans of $49.5 million for other consumer and $753,000 for residential real estate.


(4)	Excludes purchased loans of $25.0 million for other consumer.


(5)	Excludes the sale of small business administration loans of $3.5 million, under-performing residential loans of $2.9 million, under-performing commercial loans of $1.7 million and under-performing residential loans of $5.1 million for the three months ended September 30, 2019, June 30, 2019, December 31, 2018, and September 30, 2018, respectively.


(1)	The loans acquired from Capital Bank, Sun, Ocean Shore, Cape, and Colonial American were recorded at fair value. The net credit mark on these loans, not reflected in the allowance for loan losses, was $32,768, $36,026, $35,204, $31,647, and $34,357 at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.


(1)	Included in net loan charge-offs for the three months ended June 30 2019, December 31, 2018 and September 30, 2018 are $429, $243 and $430, respectively, relating to under-performing loans sold.


(1)	Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost.



		Press Release


(2)	Amount is net of deferred loan fees, undisbursed loan funds, discounts and premiums and estimated loss allowances and includes loans held for sale and non-performing loans.


(3)	Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.


(4)	Net interest margin represents net interest income divided by average interest-earning assets.


(1)	With the exception of end of quarter ratios, all ratios are based on average daily balances.


(2)	Performance ratios for each period include merger related expenses, branch consolidation expenses, non-recurring professional fees, compensation expense due to the retirement of an executive officer and the impact to income tax expense related to Tax Reform. Refer to Other Items - Non-GAAP Reconciliation for impact of these items.


(3)	Tangible stockholders’ equity and tangible assets exclude intangible assets relating to goodwill and core deposit intangible.


(4)	Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.