0001004702false00010047022025-01-232025-01-230001004702us-gaap:CommonStockMember2025-01-232025-01-230001004702ocfc:DepositarySharesMember2025-01-232025-01-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): January 23, 2025
 
OCEANFIRST FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware 001-11713 22-3412577
(State or other jurisdiction of
incorporation or organization)		 (Commission
File No.)		 (IRS Employer
Identification No.)
110 West Front Street, Red Bank New Jersey 07701
(Address of principal executive offices, including zip code)
(732)240-4500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange in which registered
Common stock, $0.01 par value per shareOCFCNASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)OCFCPNASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02RESULTS OF OPERATION AND FINANCIAL CONDITION
On January 23, 2025, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2024. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01REGULATION FD DISCLOSURE
The Company is scheduled to make presentations to current and prospective investors after January 23, 2025. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which OceanFirst Financial Corp. will make available at these presentations and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.
ITEM 8.01OTHER EVENTS
In the press release described in Item 2.02, the Company announced that the Board of Directors declared a regular quarterly cash dividend on the Company’s outstanding common stock. The cash dividend will be in the amount of $0.20 per share and will be payable on February 14, 2025 to the stockholders of record at the close of business on February 3, 2025.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
 
(d)EXHIBITS
Press Release datedJanuary 23, 2025
Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after January 23, 2025.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
OCEANFIRST FINANCIAL CORP.
DatedJanuary 23, 2025/s/ Patrick S. Barrett
Patrick S. Barrett
Executive Vice President and Chief Financial Officer





oceanfirstpressreleasimagea.jpg
Press Release

Exhibit 99.1
Company Contact:


Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com

FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES QUARTERLY AND ANNUAL
FINANCIAL RESULTS


    RED BANK, NEW JERSEY, January 23, 2025 - OceanFirst Financial Corp. (NASDAQ:“OCFC”) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.9 million, or $0.36 per diluted share, for the quarter ended December 31, 2024, a decrease from $26.7 million, or $0.46 per diluted share, for the corresponding prior year period, and $24.1 million, or $0.42 per diluted share, for the prior linked quarter. For the year ended December 31, 2024, the Company reported net income available to common stockholders of $96.0 million, or $1.65 per diluted share, a decrease from $100.0 million, or $1.70 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Year Ended,
Performance Ratios (Quarterly Ratios Annualized):December 31,September 30,December 31,December 31,December 31,
20242024202320242023
Return on average assets 0.61 %0.71 %0.78 %0.71 %0.74 %
Return on average stockholders’ equity4.88 5.68 6.41 5.70 6.13 
Return on average tangible stockholders’ equity (a)
7.12 8.16 9.33 8.24 8.97 
Return on average tangible common equity (a)
7.47 8.57 9.81 8.65 9.44 
Efficiency ratio67.86 65.77 60.38 63.99 61.71 
Net interest margin2.69 2.67 2.82 2.72 3.02 
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.


Core earnings1 for the quarter and year ended December 31, 2024 were $22.1 million and $93.6 million, respectively, or $0.38 and $1.60 per diluted share, a decrease from $26.3 million and $104.7 million, or $0.45 and $1.78 per diluted share, for the corresponding prior year periods, and a decrease from $23.2 million, or $0.39 per diluted share, for the prior linked quarter.
Core earnings PTPP1 for the quarter and year ended December 31, 2024 were $29.6 million and $129.4 million, respectively, or $0.51 and $2.22 per diluted share, as compared to $37.9 million and $156.6 million, or $0.65 and $2.66 per diluted share, for the corresponding prior year periods, and $30.9 million, or $0.53 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,For the Year Ended,
December 31,September 30,December 31,December 31,December 31,
Core Ratios1 (Quarterly Ratios Annualized):
20242024202320242023
Return on average assets 0.65 %0.69 %0.77 %0.69 %0.78 %
Return on average tangible stockholders’ equity7.51 7.85 9.20 8.03 9.39 
Return on average tangible common equity7.89 8.24 9.67 8.43 9.89 
Efficiency ratio67.74 66.00 60.02 64.57 60.61 
Core diluted earnings per share$0.38 $0.39 $0.45 $1.60 $1.78 
Core PTPP diluted earnings per share0.51 0.53 0.65 2.22 2.66 

    



1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP or Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden provision). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
2

Key developments for the recent quarter are described below:
•Margin Expansion: Net interest margin increased two basis points to 2.69% from 2.67% and net interest income increased by $1.1 million to $83.3 million. Excluding the impact of purchase accounting accretion and prepayment fees of 0.02% in the prior quarter, net interest margin expanded four basis points to 2.69% from 2.65%.
•Loan Growth: Loan growth for the quarter was $95.9 million, or 4% annualized, reflecting a 20% increase in originations to $515.2 million. The loan pipeline remained strong at $306.7 million.
•Deposit Growth: Total deposits were $10.1 billion for both the current and prior linked quarter. Excluding $126.3 million of brokered deposit run-off, deposits increased $76.5 million, or 3% annualized. Brokered deposits have decreased $556.8 million since December 31, 2023. Average cost of deposits for the quarter was 2.32%, with spot rates at December 31, 2024 continuing to decline across all deposit types.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflects an inflection point in net interest income and margin, loan and deposit growth, and continued strong asset quality. The quarter includes the impact of our acquisition of a specialty finance company, which has complemented our existing product offerings.” Mr. Maher added, “As we turn to 2025, the Company remains focused on high quality growth while maintaining our expense and credit discipline.”
The Company’s Board of Directors declared its 112th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on February 14, 2025 to common stockholders of record on February 3, 2025. The Company’s Board of Directors previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 17, 2025 to preferred stockholders of record on January 31, 2025.
3

Results of Operations
The current quarter was favorably impacted by a continued mix-shift and repricing of funding costs, partly offset by a decrease in yields on interest-earning assets due to lower market interest rates. The current quarter results also include the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”)2, which the Company recognized a $1.4 million initial provision for credit losses through earnings. Additionally, the current quarter includes $768,000 of non-recurring death benefits on bank owned life insurance and income tax expense was positively impacted by utilization of tax credits.
Net Interest Income and Margin
Quarter ended December 31, 2024 vs. December 31, 2023
Net interest income decreased to $83.3 million, from $87.8 million, primarily reflecting the net impact of the rate environment. Net interest margin decreased to 2.69%, from 2.82%, which included the impact of purchase accounting accretion and prepayment fees of 0.05% in the prior period. Net interest margin decreased primarily due to the increase in cost of funds outpacing the yield on average interest earning assets.
Average interest-earning assets decreased by $17.7 million, due to a decrease in interest-earning cash deposits and net loans, largely offset by an increase in securities. The average yield for interest-earning assets remained relatively stable at 5.15%, from 5.16%.
The cost of average interest-bearing liabilities increased to 3.04%, from 2.91%, primarily due to higher cost of deposits, partially offset by lower cost of total borrowings. The total cost of deposits increased 10 basis points to 2.32%, from 2.22%. Average interest-bearing liabilities increased by $76.4 million, primarily due to an increase in total borrowings, partly offset by a decrease in total deposits.
Year ended December 31, 2024 vs. December 31, 2023
Net interest income decreased to $334.0 million, from $369.7 million, reflecting the net impact of the interest rate environment. Net interest margin decreased to 2.72%, from 3.02%, which included
2 The acquisition of Spring Garden was effective October 1, 2024.
4

the impact of purchase accounting accretion and prepayment fees of 0.02% and 0.05% for the respective periods.
Average interest-earning assets increased by $29.8 million, primarily driven by redeployment of cash into securities, which grew by $179.0 million. The average yield increased to 5.23%, from 4.96%.
The total cost of average interest-bearing liabilities increased to 3.10%, from 2.45% primarily due to higher cost of deposits. The total cost of deposits increased to 2.36%, from 1.68%. Average interest-bearing liabilities increased by $212.2 million, primarily due to an increase in total deposits.
Quarter ended December 31, 2024 vs. September 30, 2024
Net interest income increased by $1.1 million and net interest margin increased to 2.69%, from 2.67%, which included the impact of purchase accounting accretion of 0.02% in the prior linked quarter.
Average interest-earning assets increased by $98.8 million, primarily due to increases in residential loans and securities. The yield on average interest-earning assets decreased to 5.15%, from 5.26% due to the lower market interest rate environment.
The total cost of average interest-bearing liabilities decreased to 3.04%, from 3.20%, primarily due to lower cost of deposits and Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased to 2.32%, from 2.44%. Average interest-bearing liabilities increased $112.8 million, primarily due to an increase in deposits and FHLB advances, partly offset by a decrease in other borrowings.
Provision for Credit Losses
Provision for credit losses for the quarter and year ended December 31, 2024, which included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden and the total provision for credit losses, was $3.5 million and $7.7 million, respectively, as compared to $3.2 million and $17.7 million for the corresponding prior year periods, and $517,000 in the prior linked quarter.
5

The reserve build in the quarter was driven by the net change in downside macro-economic forecasts utilized in the estimate, partly offset by a decrease of $31.0 million, or 16%, in criticized and classified assets.
Net loan recoveries were $158,000 and net loan charge-offs were $1.6 million for the quarter and year ended December 31, 2024, respectively, as compared to net loan charge-offs of $35,000 and $8.4 million for the quarter and year ended December 31, 2023. Net loan recoveries were $88,000 in the prior linked quarter. The current and prior year included partial charge-offs of $1.6 million and $8.4 million, respectively, for a single commercial real estate relationship. Refer to “Asset Quality” section for further discussion.
Non-interest Income
Quarter ended December 31, 2024 vs. December 31, 2023
Other income increased to $12.2 million, as compared to $11.9 million. Other income was favorably impacted by non-core operations of $2.2 million in the prior year, related to net gains on equity investments.
Excluding non-core operations, other income increased $2.6 million. The primary drivers were increases in income from bank owned life insurance of $1.1 million, related to non-recurring death benefits of $768,000 in the current year, fees and service charges of $892,000, primarily related to increased title fees, and net gain on sale of loans of $767,000.
Year ended December 31, 2024 vs. December 31, 2023
Other income increased to $50.2 million, as compared to $33.6 million. The current period was favorably impacted by non-core operations related to net gains on equity investments of $4.2 million and a $2.6 million gain on sale of a portion of the Company’s trust business. The prior year was adversely impacted by non-core operations of $4.4 million, primarily related to losses on sale of investments.
6

Excluding non-core operations, other income increased $5.3 million. The primary drivers were increases in the cash surrender value of bank owned life insurance of $2.6 million, which included one-time death benefits of $1.3 million, net gain on sale of loans of $1.9 million, and a non-recurring gain on sale of assets held for sale of $855,000. This was partially offset by a decrease in trust and asset management revenue of $784,000, related to the sale of a portion of the Company’s trust business.
Quarter ended December 31, 2024 vs. September 30, 2024
Other income in the prior quarter was $14.7 million, which included non-core operations of $1.4 million related to net gains on equity investments and $1.4 million related to gain on sale of a portion of the Company’s trust business. Excluding non-core operations, other income increased by $411,000. The primary drivers were increases in income from bank owned life insurance of $759,000 and net gain on sale of loans of $571,000, partly offset by a decrease in gain on sale of assets held for sale of $855,000, related to activity in the prior quarter.
Non-interest Expense
Quarter ended December 31, 2024 vs. December 31, 2023
Operating expenses increased to $64.8 million, as compared to $60.2 million. Operating expenses were adversely impacted by non-core items of $110,000 from the merger related expenses in the current year and $1.7 million from an FDIC special assessment in the prior year.
Excluding non-core operations, operating expenses increased by $6.2 million. The primary drivers were increases in compensation and benefits of $4.5 million, primarily due to the acquisitions during the year, and other operating expenses of $1.8 million, which was partly due to additional loan servicing expenses.
Year ended December 31, 2024 vs. December 31, 2023
Operating expenses decreased to $245.9 million, as compared to $248.9 million. Operating expenses in the current year were adversely impacted by $2.2 million of non-core operations of merger
7

related expenses and FDIC special assessments, and in the prior year by $1.8 million for FDIC special assessments, merger related and net branch consolidation expenses.
Excluding non-core operations, operating expenses decreased by $3.5 million. This was due to a decrease in professional fees of $8.8 million as the Company realized benefits from the performance improvement initiatives and investments made in the prior year. This was partially offset by increases in other operating expense of $3.0 million, which was partly due to additional loan servicing expenses, and compensation and benefits of $2.5 million, primarily due to the acquisitions during the year.
Quarter ended December 31, 2024 vs. September 30, 2024
Operating expenses in the prior linked quarter were $63.7 million and were adversely impacted by non-core operations of $1.7 million related to merger related expenses. Excluding non-core operations, operating expenses increased by $2.7 million. The primary drivers were increases in compensation and benefits expense of $758,000 and data processing of $426,000, primarily related to acquisitions during the year. Additionally, there were increases in professional fees of $650,000 and other operating expense of $532,000, which was partly related to title costs.
Income Tax Expense
    The provision for income taxes was $5.1 million and $30.3 million for the quarter and year ended December 31, 2024, respectively, as compared to $8.6 million and $32.7 million, for the same prior year periods, and $7.5 million for the prior linked quarter. The effective tax rate was 18.7% and 23.2% for the quarter and year ended December 31, 2024, respectively, as compared to 23.6% and 23.9% for the same prior year periods, and 22.9% for the prior linked quarter. The Company’s current quarter effective tax rate was positively impacted by utilization of higher tax credits as compared to the same prior year period and the year ended December 31, 2024 was adversely impacted by the non-recurring write-off of a deferred tax asset of $1.2 million net of other state effects and credits.
8

Financial Condition
December 31, 2024 vs. December 31, 2023    
Total assets decreased by $117.0 million to $13.42 billion, from $13.54 billion, primarily due to decreases in loans and securities. Total loans decreased by $76.5 million to $10.12 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $126.6 million driven by loan payoffs, partly offset by an increase in residential loans of $70.2 million. The loan pipeline increased by $123.6 million to $306.7 million, from $183.0 million. Debt securities held-to-maturity decreased by $113.9 million to $1.05 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale increased by $73.6 million to $827.5 million, from $753.9 million, primarily due to new purchases. Goodwill increased by $17.2 million to $523.3 million, from $506.1 million due to the acquisition of Spring Garden.
    Total liabilities decreased by $157.8 million to $11.72 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $368.6 million to $10.07 billion, from $10.43 billion, primarily due to decreases in time deposits of $364.5 million and high-yield savings accounts of $332.4 million, offset by increases in money market accounts of $279.4 million. Time deposits decreased by $364.5 million to $2.08 billion, from $2.45 billion, representing 20.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits, which decreased by $556.8 million, offset by increases in retail time deposits of $203.5 million. The loans-to-deposit ratio was 100.5%, as compared to 97.7%. FHLB advances increased by $224.0 million to $1.07 billion, from $848.6 million as a result of lower-cost funding availability.
Capital levels remain strong and in excess of “well-capitalized” regulatory levels at December 31, 2024, including the Company’s estimated common equity tier one capital ratio, which increased to 11.2%, up approximately 30 basis points from December 31, 2023.
9

    Total stockholders’ equity increased to $1.70 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. For the year ended December 31, 2024, the Company repurchased 1,383,238 shares totaling $21.5 million at a weighted average cost of $15.38. The Company had 1,551,200 shares available for repurchase under the authorized repurchase program at December 31, 2024. Additionally, accumulated other comprehensive loss decreased by $5.0 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
The Company’s tangible common equity3 increased by $20.5 million to $1.11 billion. The Company’s stockholders’ equity to assets ratio was 12.69% at December 31, 2024, and tangible common equity to tangible assets ratio increased by 24 basis points during the quarter to 8.62%, primarily due to the drivers described above.
Book value per common share increased to $29.08, as compared to $27.96. Tangible book value per common share3 increased to $18.98, as compared to $18.35.
Asset Quality
December 31, 2024 vs. December 31, 2023
The Company’s non-performing loans increased to $35.5 million from $29.5 million, primarily due to acquired purchase credit deteriorated (“PCD”) loans from Spring Garden, and represented 0.35% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 207.19%, as compared to 227.21%. The level of 30 to 89 days delinquent loans increased to $36.6 million, from $19.2 million. Criticized and classified assets increased by $12.9 million to $159.9 million from $146.9 million. The Company’s allowance for loan credit losses was 0.73% of total loans as compared to 0.66%. Refer to “Provision for Credit Losses” section for further discussion.
3 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
10

The Company’s asset quality, excluding PCD loans, was as follows. Non-performing loans increased to $27.6 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 266.73%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, also excluding non-performing loans, increased to $33.6 million, from $17.7 million.
Explanation of Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.
11

Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, January 24, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-833-470-1428, toll free, using the access code 688131. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 651816, from one hour after the end of the call until February 21, 2025. The conference call will also be available (listen-only) by internet webcast at www.oceanfirst.com - in the Investor Relations section.
* * *
    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.4 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements
    
In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers, 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, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company’s rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the 2023 Form 10-K, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

12


OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
December 31, 2024September 30, 2024December 31, 2023
(Unaudited)(Unaudited)
Assets
Cash and due from banks
$123,615 $214,171 $153,718 
Debt securities available-for-sale, at estimated fair value
827,500 911,753 753,892 
Debt securities held-to-maturity, net of allowance for securities credit losses of $967 at December 31, 2024, $902 at September 30, 2024, and $1,133 at December 31, 2023 (estimated fair value of $952,917 at December 31, 2024, $1,007,781 at September 30, 2024, and $1,068,438 at December 31, 2023)
1,045,875 1,075,131 1,159,735 
Equity investments84,104 95,688 100,163 
Restricted equity investments, at cost
108,634 98,545 93,766 
Loans receivable, net of allowance for loan credit losses of $73,607 at December 31, 2024, $69,066 at September 30, 2024, and $67,137 at December 31, 2023
10,055,429 9,963,598 10,136,721 
Loans held-for-sale
21,211 23,036 5,166 
Interest and dividends receivable
45,914 48,821 51,874 
Other real estate owned
1,811 — — 
Premises and equipment, net
115,256 116,087 121,372 
Bank owned life insurance270,208 269,138 266,498 
Assets held for sale
— — 28 
Goodwill
523,308 506,146 506,146 
Intangibles12,680 7,056 9,513 
Other assets185,702 159,313 179,661 
Total assets
$13,421,247 $13,488,483 $13,538,253 
Liabilities and Stockholders’ Equity
Deposits
$10,066,342 $10,116,167 $10,434,949 
Federal Home Loan Bank advances
1,072,611 891,860 848,636 
Securities sold under agreements to repurchase with customers60,567 81,163 73,148 
Other borrowings
197,546 419,927 196,456 
Advances by borrowers for taxes and insurance
23,031 27,282 22,407 
Other liabilities
298,393 257,576 300,712 
Total liabilities
11,718,490 11,793,975 11,876,308 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,701,650 1,693,654 1,661,163 
Non-controlling interest1,107 854 782 
Total stockholders’ equity1,702,757 1,694,508 1,661,945 
Total liabilities and stockholders’ equity
$13,421,247 $13,488,483 $13,538,253 
13


OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months EndedFor the Year Ended
December 31,September 30,December 31,December 31,
20242024202320242023
|--------------------- (Unaudited) ---------------------|(Unaudited)
Interest income:
Loans$135,438 $136,635 $137,110 $545,243 $521,865 
Debt securities19,400 19,449 15,444 77,749 59,273 
Equity investments and other4,782 5,441 7,880 19,181 26,836 
Total interest income159,620 161,525 160,434 642,173 607,974 
Interest expense:
Deposits59,889 62,318 59,467 242,133 172,018 
Borrowed funds16,402 16,988 13,143 66,005 66,225 
Total interest expense76,291 79,306 72,610 308,138 238,243 
Net interest income83,329 82,219 87,824 334,035 369,731 
Provision for credit losses3,467 517 3,153 7,689 17,678 
Net interest income after provision for credit losses79,862 81,702 84,671 326,346 352,053 
Other income:
Bankcard services revenue1,595 1,615 1,531 6,197 5,912 
Trust and asset management revenue416 384 610 1,745 2,529 
Fees and service charges6,207 6,096 5,315 21,791 21,254 
Net gain on sales of loans1,076 505 309 2,358 428 
Net (loss) gain on equity investments(5)1,420 2,176 4,225 (3,732)
Net loss from other real estate operations(20)— — (20)— 
Income from bank owned life insurance2,538 1,779 1,427 7,905 5,280 
Commercial loan swap income86 414 29 879 741 
Other339 2,471 464 5,107 1,212 
Total other income12,232 14,684 11,861 50,187 33,624 
Operating expenses:
Compensation and employee benefits36,602 35,844 32,126 138,341 135,802 
Occupancy5,280 5,157 5,218 20,811 21,188 
Equipment1,026 1,026 1,172 4,250 4,650 
Marketing1,615 1,385 1,112 5,165 4,238 
Federal deposit insurance and regulatory assessments 2,517 2,618 4,386 10,955 11,157 
Data processing6,366 5,940 6,430 24,280 24,835 
Check card processing1,134 1,153 991 4,412 4,640 
Professional fees2,620 1,970 2,858 9,483 18,297 
Amortization of intangibles876 803 976 3,333 3,984 
Branch consolidation expense, net— — — — 70 
Merger related expenses110 1,669 — 1,779 22 
Other operating expense6,703 6,171 4,920 23,068 20,029 
Total operating expenses64,849 63,736 60,189 245,877 248,912 
Income before provision for income taxes27,245 32,650 36,343 130,656 136,765 
Provision for income taxes5,083 7,464 8,591 30,266 32,700 
Net income22,162 25,186 27,752 100,390 104,065 
Net income attributable to non-controlling interest253 70 70 325 36 
Net income attributable to OceanFirst Financial Corp.21,909 25,116 27,682 100,065 104,029 
Dividends on preferred shares1,004 1,004 1,004 4,016 4,016 
Net income available to common stockholders$20,905 $24,112 $26,678 $96,049 $100,013 
Basic earnings per share$0.36 $0.42 $0.46 $1.65 $1.70 
Diluted earnings per share$0.36 $0.42 $0.46 $1.65 $1.70 
Average basic shares outstanding58,026 58,065 59,120 58,296 58,948 
Average diluted shares outstanding58,055 58,068 59,123 58,297 58,957 

14


OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Commercial:
Commercial real estate - investor$5,287,683 $5,273,159 $5,324,994 $5,322,755 $5,353,974 
Commercial real estate - owner-occupied902,219 841,930 857,710 914,582 943,891 
Commercial and industrial647,945 660,879 616,400 677,176 666,532 
Total commercial6,837,847 6,775,968 6,799,104 6,914,513 6,964,397 
Consumer:
Residential real estate3,049,763 3,003,213 2,977,698 2,965,276 2,979,534 
Home equity loans and lines and other consumer (“other consumer”)230,462 242,975 242,526 245,859 250,664 
Total consumer3,280,225 3,246,188 3,220,224 3,211,135 3,230,198 
Total loans10,118,072 10,022,156 10,019,328 10,125,648 10,194,595 
Deferred origination costs (fees), net10,964 10,508 10,628 9,734 9,263 
Allowance for loan credit losses(73,607)(69,066)(68,839)(67,173)(67,137)
Loans receivable, net$10,055,429 $9,963,598 $9,961,117 $10,068,209 $10,136,721 
Mortgage loans serviced for others$191,279 $142,394 $104,136 $89,555 $68,217 
At December 31, 2024 Average Yield
Loan pipeline (1):
Commercial8.21 %$197,491 $199,818 $166,206 $66,167 $124,707 
Residential real estate
6.69 97,385 137,978 80,330 57,340 49,499 
Other consumer8.60 11,783 13,788 12,586 13,030 8,819 
Total7.74 %$306,659 $351,584 $259,122 $136,537 $183,025 
For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Average Yield
Loan originations:
Commercial8.33 %$268,613 (2)$245,886 $56,053 $123,010 $94,294 
Residential real estate6.24 235,370 169,273 121,388 78,270 113,227 
Other consumer8.76 11,204 15,760 16,970 11,405 16,971 
Total7.38 %$515,187 $430,919 $194,411 $212,685 $224,492 
Loans sold$127,508 $65,296 $45,045 $29,965 $20,138 
(1)Loan pipeline includes loans approved but not funded.
(2)Excludes commercial loan pool purchases of $76.1 million for the three months ended December 31, 2024.

DEPOSITSAt
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Type of Account
Non-interest-bearing$1,617,182 $1,638,447 $1,632,521 $1,639,828 $1,657,119 
Interest-bearing checking4,000,553 3,896,348 3,667,837 3,865,699 3,911,766 
Money market1,301,197 1,288,555 1,210,312 1,150,979 1,021,805 
Savings1,066,438 1,071,946 1,115,688 1,260,309 1,398,837 
Time deposits (1)
2,080,972 2,220,871 2,367,659 2,320,036 2,445,422 
Total deposits$10,066,342 $10,116,167 $9,994,017 $10,236,851 $10,434,949 
(1)Includes brokered time deposits of $74.7 million, $201.0 million, $401.6 million, $543.4 million, and $631.5 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY (1)
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Non-performing loans:
Commercial real estate - investor
$17,000 $12,478 $19,761 $21,507 $20,820 
Commercial real estate - owner-occupied
4,787 4,368 4,081 3,355 351 
Commercial and industrial
32 122 434 567 304 
Residential real estate
10,644 9,108 7,213 7,181 5,542 
Other consumer3,064 2,063 1,933 2,401 2,531 
Total non-performing loans$35,527 $28,139 $33,422 $35,011 $29,548 
Other real estate owned1,811 — — — — 
Total non-performing assets
$37,338 $28,139 $33,422 $35,011 $29,548 
Delinquent loans 30 to 89 days
$36,550 $15,458 $9,655 $17,534 $19,202 
Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)
$8,483 $8,409 $8,677 $9,075 $6,420 
Performing
33,524 26,655 27,184 15,619 15,361 
Total modification to borrowers experiencing financial difficulty (2)
$42,007 $35,064 $35,861 $24,694 $21,781 
Allowance for loan credit losses$73,607 $69,066 $68,839 $67,173 $67,137 
Allowance for loan credit losses as a percent of total loans receivable (3)
0.73 %0.69 %0.69 %0.66 %0.66 %
Allowance for loan credit losses as a percent of total non-performing loans (3)
207.19 245.45 205.97 191.86 227.21 
Non-performing loans as a percent of total loans receivable0.35 0.28 0.33 0.35 0.29 
Non-performing assets as a percent of total assets
0.28 0.21 0.25 0.26 0.22 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$22,006 $15,323 $16,058 $16,700 $16,122 
Non-performing PCD loans7,931 2,887 2,841 3,525 3,183 
Delinquent PCD and non-performing loans 30 to 89 days2,997 1,279 1,188 2,088 1,516 
PCD modifications to borrowers experiencing financial difficulty (2)
738 760 759 764 771 
Asset quality, excluding PCD loans (4)
Non-performing loans27,596 25,252 30,581 31,486 26,365 
Non-performing assets29,407 25,252 30,581 31,486 26,365 
Delinquent loans 30 to 89 days (excludes non-performing loans)
33,553 14,179 8,467 15,446 17,686 
Modification to borrowers experiencing financial difficulty (2)
41,269 34,304 35,102 23,930 21,010 
Allowance for loan credit losses as a percent of total non-performing loans (3)
266.73 %273.51 %225.10 %213.34 %254.64 %
Non-performing loans as a percent of total loans receivable
0.27 0.25 0.31 0.31 0.26 
Non-performing assets as a percent of total assets0.22 0.19 0.23 0.23 0.19 
(1)The quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million, which had life-to-date charge-offs of $10.0 million.
(2)Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(3)Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $6.0 million, $5.7 million, $6.1 million, $7.0 million, and $7.5 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
(4)All balances and ratios exclude PCD loans.

16

NET LOAN RECOVERIES (CHARGE-OFFS)For the Three Months Ended
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Net loan recoveries (charge-offs):
Loan charge-offs (1)
$(55)$(124)$(1,600)$(441)$(98)
Recoveries on loans213 212 148 92 63 
Net loan recoveries (charge-offs) $158 $88 $(1,452)$(349)$(35)
Net loan recoveries (charge-offs) to average total loans (annualized)NM*NM*0.06 %0.01 %— %
Net loan recoveries (charge-offs) detail:
Commercial$92 $129 $(1,576)$(35)$9 
Residential real estate(17)(6)87 66 9 
Other consumer83 (35)37 (380)(53)
Net loan recoveries (charge-offs) $158 $88 $(1,452)$(349)$(35)
(1)The three months ended June 30, 2024 includes a charge-off related to a single commercial real estate relationship of $1.6 million.
* Not meaningful as amounts are net loan recoveries.


17


OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
 For the Three Months Ended
 December 31, 2024September 30, 2024December 31, 2023
(dollars in thousands)Average
Balance		Interest
Average
Yield/
Cost (1)
Average
Balance		Interest
Average
Yield/
Cost (1)
Average
Balance		Interest
Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$195,830 $2,415 4.91 %$210,245 $2,971 5.62 %$396,843 $5,423 5.42 %
Securities (2)
2,116,911 21,767 4.09 2,063,633 21,919 4.23 1,863,136 17,901 3.81 
Loans receivable, net (3)
Commercial6,794,158 101,003 5.91 6,782,777 102,881 6.03 6,937,191 105,260 6.02 
Residential real estate3,049,092 30,455 4.00 2,992,138 29,677 3.97 2,957,671 27,934 3.78 
Other consumer236,161 3,980 6.70 242,942 4,077 6.68 250,300 3,916 6.21 
Allowance for loan credit losses, net of deferred loan costs and fees(60,669)— — (59,063)— — (56,001)— — 
Loans receivable, net10,018,742 135,438 5.38 9,958,794 136,635 5.46 10,089,161 137,110 5.40 
Total interest-earning assets12,331,483 159,620 5.15 12,232,672 161,525 5.26 12,349,140 160,434 5.16 
Non-interest-earning assets1,213,569 1,206,024 1,243,967 
Total assets$13,545,052 $13,438,696 $13,593,107 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$4,050,428 22,750 2.23 %$3,856,281 21,731 2.24 %$3,908,517 19,728 2.00 %
Money market1,325,119 10,841 3.25 1,256,536 11,454 3.63 941,859 7,520 3.17 
Savings1,070,816 2,138 0.79 1,088,926 2,218 0.81 1,446,935 5,193 1.42 
Time deposits2,212,750 24,160 4.34 2,339,370 26,915 4.58 2,596,706 27,026 4.13 
Total8,659,113 59,889 2.75 8,541,113 62,318 2.90 8,894,017 59,467 2.65 
FHLB advances854,748 10,030 4.67 757,535 9,140 4.80 615,172 7,470 4.82 
Securities sold under agreements to repurchase76,856 513 2.66 75,871 491 2.57 80,181 387 1.91 
Other borrowings
396,412 5,859 5.88 499,839 7,357 5.86 321,369 5,286 6.53 
Total borrowings1,328,016 16,402 4.91 1,333,245 16,988 5.07 1,016,722 13,143 5.13 
Total interest-bearing liabilities9,987,129 76,291 3.04 9,874,358 79,306 3.20 9,910,739 72,610 2.91 
Non-interest-bearing deposits1,627,376 1,634,743 1,739,499 
Non-interest-bearing liabilities 227,221 240,560 292,170 
Total liabilities11,841,726 11,749,661 11,942,408 
Stockholders’ equity
1,703,326 1,689,035 1,650,699 
Total liabilities and equity$13,545,052 $13,438,696 $13,593,107 
Net interest income$83,329 $82,219 $87,824 
Net interest rate spread (4)
2.11 %2.06 %2.25 %
Net interest margin (5)
2.69 %2.67 %2.82 %
Total cost of deposits (including non-interest-bearing deposits)2.32 %2.44 %2.22 %







18


(continued)
 For the Year Ended
 December 31, 2024December 31, 2023
(dollars in thousands)Average
Balance		InterestAverage
Yield/
Cost		Average
Balance		InterestAverage
Yield/
Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$175,611 $9,381 5.34 %$327,539 $17,084 5.22 %
Securities (2)
2,084,451 87,549 4.20 1,905,413 69,025 3.62 
Loans receivable, net (3)
Commercial6,836,728 410,978 6.01 6,903,731 400,459 5.80 
Residential real estate2,998,732 117,747 3.93 2,911,246 105,796 3.63 
Other consumer243,360 16,518 6.79 255,359 15,610 6.11 
Allowance for loan credit losses, net of deferred loan costs and fees(59,289)— — (53,477)— — 
Loans receivable, net10,019,531 545,243 5.44 10,016,859 521,865 5.21 
Total interest-earning assets12,279,593 642,173 5.23 12,249,811 607,974 4.96 
Non-interest-earning assets1,215,809 1,237,218 
Total assets$13,495,402 $13,487,029 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,923,846 86,320 2.20 %$3,795,502 52,898 1.39 %
Money market1,214,690 41,948 3.45 794,387 18,656 2.35 
Savings1,169,424 11,422 0.98 1,364,333 9,227 0.68 
Time deposits2,325,638 102,443 4.40 2,440,829 91,237 3.74 
Total8,633,598 242,133 2.80 8,395,051 172,018 2.05 
FHLB advances742,575 35,686 4.81 944,219 46,000 4.87 
Securities sold under agreements to repurchase73,399 1,893 2.58 75,140 931 1.24 
Other borrowings
484,406 28,426 5.87 307,368 19,294 6.28 
Total borrowings1,300,380 66,005 5.08 1,326,727 66,225 4.99 
Total interest-bearing liabilities9,933,978 308,138 3.10 9,721,778 238,243 2.45 
Non-interest-bearing deposits1,630,719 1,869,735 
Non-interest-bearing liabilities
245,680 262,883 
Total liabilities11,810,377 11,854,396 
Stockholders’ equity
1,685,025 1,632,633 
Total liabilities and equity$13,495,402 $13,487,029 
Net interest income$334,035 $369,731 
Net interest rate spread (4)
2.13 %2.51 %
Net interest margin (5)
2.72 %3.02 %
Total cost of deposits (including non-interest-bearing deposits)2.36 %1.68 %
(1)    Average yields and costs are annualized.
(2)    Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3)    Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4)    Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5)    Net interest margin represents net interest income divided by average interest-earning assets.

19


OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Selected Financial Condition Data:
Total assets$13,421,247 $13,488,483 $13,321,755 $13,418,978 $13,538,253 
Debt securities available-for-sale, at estimated fair value827,500 911,753 721,484 744,944 753,892 
Debt securities held-to-maturity, net of allowance for securities credit losses1,045,875 1,075,131 1,105,843 1,128,666 1,159,735 
Equity investments84,104 95,688 104,132 103,201 100,163 
Restricted equity investments, at cost108,634 98,545 92,679 85,689 93,766 
Loans receivable, net of allowance for loan credit losses10,055,429 9,963,598 9,961,117 10,068,209 10,136,721 
Deposits10,066,342 10,116,167 9,994,017 10,236,851 10,434,949 
Federal Home Loan Bank advances1,072,611 891,860 789,337 658,436 848,636 
Securities sold under agreements to repurchase and other borrowings258,113 501,090 504,490 492,520 269,604 
Total stockholders’ equity1,702,757 1,694,508 1,676,669 1,665,837 1,661,945 

For the Three Months Ended
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Selected Operating Data:
Interest income$159,620 $161,525 $159,426 $161,602 $160,434 
Interest expense76,291 79,306 77,163 75,378 72,610 
Net interest income83,329 82,219 82,263 86,224 87,824 
Provision for credit losses (excluding Spring Garden)2,041 517 3,114 591 3,153 
Spring Garden opening provision for credit losses1,426 — — — — 
Net interest income after provision for credit losses79,862 81,702 79,149 85,633 84,671 
Other income (excluding equity investments and sale of trust)12,237 11,826 10,098 9,201 9,685 
Net (loss) gain on equity investments(5)1,420 887 1,923 2,176 
Net gain on sale of trust business— 1,438 — 1,162 — 
Operating expenses (excluding FDIC special assessment and merger related expenses)64,739 62,067 58,620 58,254 58,526 
FDIC special assessment— — — 418 1,663 
Merger related expenses110 1,669 — — — 
Income before provision for income taxes27,245 32,650 31,514 39,247 36,343 
Provision for income taxes5,083 7,464 7,082 10,637 8,591 
Net income22,162 25,186 24,432 28,610 27,752 
Net income (loss) attributable to non-controlling interest253 70 59 (57)70 
Net income attributable to OceanFirst Financial Corp.$21,909 $25,116 $24,373 $28,667 $27,682 
Net income available to common stockholders$20,905 $24,112 $23,369 $27,663 $26,678 
Diluted earnings per share$0.36 $0.42 $0.40 $0.47 $0.46 
Net accretion/amortization of purchase accounting adjustments included in net interest income$20 $741 $1,086 $921 $1,604 









20



(continued)
At or For the Three Months Ended
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Selected Financial Ratios and Other Data (1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
0.61 %0.71 %0.70 %0.82 %0.78 %
Return on average tangible assets (3) (4)
0.64 0.74 0.73 0.85 0.81 
Return on average stockholders' equity (3)
4.88 5.68 5.61 6.65 6.41 
Return on average tangible stockholders' equity (3) (4)
7.12 8.16 8.10 9.61 9.33 
Return on average tangible common equity (3) (4)
7.47 8.57 8.51 10.09 9.81 
Stockholders' equity to total assets12.69 12.56 12.59 12.41 12.28 
Tangible stockholders' equity to tangible assets (4)
9.06 9.10 9.08 8.92 8.80 
Tangible common equity to tangible assets (4)
8.62 8.68 8.64 8.49 8.38 
Net interest rate spread2.11 2.06 2.11 2.23 2.25 
Net interest margin2.69 2.67 2.71 2.81 2.82 
Operating expenses to average assets1.90 1.89 1.75 1.74 1.76 
Efficiency ratio (5)
67.86 65.77 62.86 59.56 60.38 
Loans-to-deposits100.50 99.10 100.30 98.90 97.70 
At or For the Year Ended December 31,
20242023
Performance Ratios:
Return on average assets (3)
0.71 %0.74 %
Return on average tangible assets (3) (4)
0.74 0.77 
Return on average stockholders' equity (3)
5.70 6.13 
Return on average tangible stockholders' equity (3) (4)
8.24 8.97 
Return on average tangible common equity (3) (4)
8.65 9.44 
Net interest rate spread2.13 2.51 
Net interest margin2.72 3.02 
Operating expenses to average assets1.82 1.85 
Efficiency ratio (5)
63.99 61.71 


















21

(continued)
At or For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$147,956 $152,797 $150,519 $236,891 $335,769 
Nest Egg AUA/M431,434 430,413 403,647 407,478 401,420 
Total AUA/M579,390 583,210 554,166 644,369 737,189 
Per Share Data:
Cash dividends per common share$0.20 $0.20 $0.20 $0.20 $0.20 
Book value per common share at end of period29.08 29.02 28.67 28.32 27.96 
Tangible book value per common share at end of period (4)
18.98 19.28 18.93 18.63 18.35 
Common shares outstanding at end of period58,554,871 58,397,094 58,481,41858,812,49859,447,684 
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:39 39 39 39 39 
Quarterly Average Balances
Total securities$2,116,911 $2,063,633 $2,058,711 $2,098,421 $1,863,136 
Loans receivable, net10,018,742 9,958,794 10,012,491 10,088,771 10,089,161 
Total interest-earning assets12,331,483 12,232,672 12,203,776 12,350,384 12,349,140 
Total goodwill and intangibles534,942 513,731 514,535 515,356 516,289 
Total assets13,545,052 13,438,696 13,441,218 13,556,720 13,593,107 
Time deposits2,212,750 2,339,370 2,337,458 2,414,063 2,596,706 
Total deposits (including non-interest-bearing deposits)10,286,489 10,175,856 10,173,315 10,422,332 10,633,516 
Total borrowings1,328,016 1,333,245 1,325,372 1,214,219 1,016,722 
Total interest-bearing liabilities9,987,129 9,874,358 9,872,522 10,001,968 9,910,739 
Non-interest bearing deposits1,627,376 1,634,743 1,626,165 1,634,583 1,739,499 
Stockholders’ equity1,703,326 1,689,035 1,674,453 1,673,040 1,650,699 
Tangible stockholders’ equity (4)
1,168,384 1,175,304 1,159,918 1,157,684 1,134,410 
Quarterly Yields and Costs
Total securities4.09 %4.23 %4.22 %4.27 %3.81 %
Loans receivable, net5.38 5.46 5.46 5.46 5.40 
Total interest-earning assets5.15 5.26 5.25 5.26 5.16 
Time deposits4.34 4.58 4.46 4.24 4.13 
Total cost of deposits (including non-interest-bearing deposits)2.32 2.44 2.37 2.31 2.22 
Total borrowed funds4.91 5.07 5.19 5.14 5.13 
Total interest-bearing liabilities3.04 3.20 3.14 3.03 2.91 
Net interest spread2.11 2.06 2.11 2.23 2.25 
Net interest margin2.69 2.67 2.71 2.81 2.82 
(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Ratios for each period are based on net income available to common stockholders.
(4) Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.





22


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

NON-GAAP RECONCILIATION
For the Three Months Ended
December 31, 2024September 30,
2024		June 30,
2024		March 31,
2024		December 31,
2023
Core Earnings:
Net income available to common stockholders (GAAP)
$20,905 $24,112 $23,369 $27,663 $26,678 
(Less) add non-recurring and non-core items:
Spring Garden opening provision for credit losses1,426 — — — — 
Net loss (gain) on equity investments5 (1,420)(887)(1,923)(2,176)
Net gain on sale of trust business— (1,438)— (1,162)— 
FDIC special assessment— — — 418 1,663 
Merger related expenses110 1,669 — — — 
Income tax (benefit) expense on items(388)270 188 642 129 
Core earnings (Non-GAAP)
$22,058 $23,193 $22,670 $25,638 $26,294 
Income tax expense$5,083 $7,464 $7,082 $10,637 $8,591 
Provision for credit losses3,467 517 3,114 591 3,153 
Less: non-core provision for credit losses1,426 — — — — 
Less: income tax (benefit) expense on non-core items(388)270 188 642 129 
Core earnings PTPP (Non-GAAP)
$29,570 $30,904 $32,678 $36,224 $37,909 
Core diluted earnings per share$0.38 $0.39 $0.39 $0.44 $0.45 
Core earnings PTPP diluted earnings per share$0.51 $0.53 $0.56 $0.62 $0.65 
Core Ratios (Annualized):
Return on average assets0.65 %0.69 %0.68 %0.76 %0.77 %
Return on average tangible stockholders’ equity7.51 7.85 7.86 8.91 9.20 
Return on average tangible common equity7.89 8.24 8.26 9.36 9.67 
Efficiency ratio67.74 66.00 63.47 61.05 60.02 
23

(continued)
For the Years Ended December 31,
20242023
Core Earnings:
Net income available to common stockholders (GAAP)
$96,049 $100,013 
(Less) add non-recurring and non-core items:
Spring Garden opening provision for credit losses1,426 — 
Net gain on equity investments (1)
(4,225)(876)
Net loss on sale of investments (1)
— 5,305 
Net gain on sale of trust business(2,600)— 
FDIC special assessment418 1,663 
Merger related expenses1,779 22 
Branch consolidation expense, net
— 70 
Income tax expense (benefit) on items712 (1,479)
Core earnings (Non-GAAP)
$93,559 $104,718 
Income tax expense$30,266 $32,700 
Provision for credit losses7,689 17,678 
Less: non-core provision for credit losses1,426 — 
Less: income tax expense (benefit) on non-core items712 (1,479)
Core earnings PTPP (Non-GAAP)
$129,376 $156,575 
Core diluted earnings per share$1.60 $1.78 
Core earnings PTPP diluted earnings per share$2.22 $2.66 
Core Ratios:
Return on average assets0.69 %0.78 %
Return on average tangible stockholders’ equity8.03 9.39 
Return on average tangible common equity8.43 9.89 
Efficiency ratio64.57 60.61 
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.
24

(continued)
December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Tangible Equity:
Total stockholders' equity$1,702,757 $1,694,508 $1,676,669 $1,665,837 $1,661,945 
Less:
Goodwill523,308 506,146 506,146 506,146 506,146 
Intangibles12,680 7,056 7,859 8,669 9,513 
Tangible stockholders’ equity1,166,769 1,181,306 1,162,664 1,151,022 1,146,286 
Less:
Preferred stock 55,527 55,527 55,527 55,527 55,527 
Tangible common equity$1,111,242 $1,125,779 $1,107,137 $1,095,495 $1,090,759 
Tangible Assets:
Total assets$13,421,247 $13,488,483 $13,321,755 $13,418,978 $13,538,253 
Less:
Goodwill523,308 506,146 506,146 506,146 506,146 
Intangibles12,680 7,056 7,859 8,669 9,513 
Tangible assets$12,885,259 $12,975,281 $12,807,750 $12,904,163 $13,022,594 
Tangible stockholders' equity to tangible assets9.06 %9.10 %9.08 %8.92 %8.80 %
Tangible common equity to tangible assets8.62 %8.68 %8.64 %8.49 %8.38 %



25
. . . (1) The 4Q 2024 Earnings Release Supplement should be read in conjunction with the Earnings Release furnished as Exhibit 99.1 to Form 8-K filed with the SEC on January 23, 2025. Exhibit 99.2 OceanFirst Financial Corp. 4Q 2024 Earnings Release Supplement(1) January 2025

 
. . .Legal Disclaimer FORWARD LOOKING STATEMENTS. In addition to historical information, this presentation 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, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers, 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, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company’s rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the 2023 Form 10-K, 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. NON-GAAP FINANCIAL INFORMATION. This presentation contains certain non-GAAP (generally accepted accounting principles) measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See reconciliations of certain non-GAAP measures included at the end of this presentation and in the Company’s Earnings Release furnished as Exhibit 99.1 to Form 8-K as filed with the SEC on January 23, 2025. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. These estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. 2

 
. . .Overview of OceanFirst 3 Tailored Footprint Across Key Markets Corporate Overview & Market Data Ticker OCFC (NASDAQ) HQ Red Bank, NJ Branch Network 39 branches; 8 commercial banking centers Core Markets New Jersey, New York City, Greater Philadelphia Expansion Markets Boston and Baltimore Balance Sheet and Capital (Q1-23) Assets $13.4 billion Net Loans $10.1 billion Deposits $10.1 billion Non-performing Loans / Loans(1) 0.27% Tang. Equity / Tang. Assets(2) 9.1% CET1 Ratio(4) 11.2% Q4-24 Loan Portfolio ($’millions) Q4-24 Deposit Base ($’millions) Core Profitability (Q1-23)2 Net Income $22.1 million EPS $0.38 Net Interest Margin (%)(3) 2.69% Efficiency Ratio (%) 67.7% ROAA (%) 0.65% ROTCE (%) 7.89% Corporate Overview and Market Data Balance Sheet and ital (Q4-24) Core Profitability (Q4-24)(2) Commercial Banking Centers Retail Branches $5,288 CRE Investor -Owned $902 CRE Owner Occupied $648 C&I $3,050 Residential $230 Home Eq. & Consumer Note: All data presented is as of December 31, 2024. (1) PCD loans are not included in these metrics. (2) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. (3) Core NIM excludes purchase accounting and prepayment fee income. (4) CET1 ratio represents an estimate as of Q4-24. $1,617 Non-interests $4,001 Interest-bearing $1,301 Money market $1,066Savings $2,081 Time deposits

 
. . .Proven Historical Net Interest Income and Loan Growth 4 76,829 120,262 169,218 240,502 255,971 312,951 305,338 377,477 369,731 334,035 3.25% 2015 3.46% 2016 3.52% 2017 3.71% 2018 3.62% 2019 3.16% 2020 2.93% 2021 3.37% 2022 3.02% 2023 2.72% 2024 Net Interest Margin Net Interest Income Strong Net Interest Income Growth ($’000) Net Interest Income CAGR 20% 1,135 1,187 2,023 2,296 3,492 4,378 5,172 5,354 5,288 687 758 1,046 1,189 1,616 1,504 1,620 1,610 1,550 831 1,704 1,749 2,045 2,321 2,309 2,480 2,862 2,980 3,050 453 511 2015 291 2016 281 2017 475 2018 408 2019 339 2020 261 2021 193 2022 251 2023 230 2024 1,988 3,817 3,975 5,589 6,214 7,756 8,623 9,918 10,195 10,118 264 Home Equity & Consumer Residential Owner Occupied CRE & C&I Investor-Owned CRE Significant Growth in Commercial Loan Portfolio ($’millions) Investor-Owned CRE CAGR 30% Owner Occupied CRE / C&I CAGR 15%

 
. . .Successful Commercial Loan Growth and Geographic Diversification 5 49% 68% 2015 Q4-24 +19% (Commercial % of Loan Portfolio) Commercial Loans by Geography(1) as of Q4-24 Emphasis on Commercial Increase of $5.9B in commercial loans since 2015 39% 29% 23% 9% New Jersey New York Philadelphia Other Markets Total: $6.8B (1) Based on location of collateral. (2) Comprised of Boston, Baltimore, Washington DC, Northern Virginia, and Pittsburgh. (2)

 
. . .Balanced Approach to Deposit Pricing and Growth 6 Deposit Composition ($’millions) 256 646 867 937 1,373 775 1,542 2,445 2,081 311 673 661 877 898 1,491 1,608 1,488 1,399 1,066 153 784 736 714 1,022 1,301 860 1,627 1,954 2,350 2,539 3,647 4,202 3,830 3,912 4,001 337 783 757 1,151 1,377 2,133 2,412 2,101 1,657 1,617 2015 459 2016 364 607 2017 570 2018 578 2019 2020 2021 2022 2023 2024 1,917 4,188 4,343 5,815 6,329 9,428 9,733 9,675 10,435 10,066 Non-interest-bearing deposits Interest-bearing deposits Money Market Savings Time deposits Strong Deposit Growth ($’millions) 4,343 9,733 9,675 10,435 10,066 2,123 1,616 1,894 123 2015 2016 2017 2018 449 2019 2020 2021 2022 2023 2024 1,917 4,188 5,815 6,329 9,428 Acquired Deposits Organic Deposits 52% 48% Commercial Consumer Total: $10.1B Deposit Stratification

 
. . .Conservative Credit Risk Profile 7 0.08% 0.05% 0.21% 2016 0.01% 0.36% 0.05% 0.11% 2017 0.03% 0.10% 0.05% 0.13% 2018 0.00% 0.12% 0.04% 0.12% 2019 0.02% 0.30% 0.03% 0.11% 2020 0.00% 0.12% 0.02% 0.07% 2021 0.00% 0.11% 0.02% 0.06% 2022 0.00% 0.19% 0.02% 0.05% 2023 0.00% 0.14% 0.01% 0.10% 2024 0.35% 0.52% 0.31% 0.03% 0.47% 0.22% 0.19% 0.26% 0.27% 0.29% Commercial & Industrial Commercial Real Estate Consumer Residential (1) PCD loans are not included in these metrics. Refer to “Asset Quality” section in the Earnings Release for additional information. 0.31 0.60 0.75 2018 0.22% 0.29 0.59 0.73 2019 0.32% 0.47 0.64 0.15% 0.19 0.40 0.50 20222021 0.45% 0.26 0.38 0.47 2023 0.19%0.19% 0.25 0.53 0.85 Q3-24 0.22% 0.27 Q4-24 0.35 0.73 0.16% 0.89 2016 2020 0.54% 0.52 0.22 0.69 0.85 0.44 2017 0.25% 0.62 0.64 NPA/Assets NPL/Loans Peer Average NPA/Assets Peer Average NPL/Loans Continued Focus on Credit Risk(1)Non-performing Loans by Type as % of Loans(1)

 
. . . 96 85 118 127 147 185 250 345 347 344 7 7 8 9 9 12 13 13 14 13 0 2 4 6 8 10 12 14 16 18 20 0 50 100 150 200 250 300 350 400 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3-24 Assets per Branch Assets per FTE Operational Efficiency 8 Deposits per Branch ($’millions) (58) bps2.39% 1.81% 2015 2024 Annual Core Non-interest Expense(1) to Total Avg. Assets 3.6x Operating Efficiency ($’millions) 2 6 7 018 2 0 2 3 (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. 20 71 69 94 99 113 152 207 255 268 258 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

 
. . .Business Model Strength Driving Significant Capital Return 9 $12.33 $0.49 $0.55 $12.91 2014 $0.94 $1.01 $13.67 2015 $1.04 $1.55 $12.94 2016 $1.09 $2.15 $13.58 2017 $1.39 $2.77 $14.26 2018 $1.97 $3.45 $15.13 2019 $2.25 $4.13 $14.98 2020 $2.86 $4.81 $15.93 2021 $2.98 $5.55 $17.08 2022 $2.98 $6.35 $18.35 2023 $3.35 2013 $18.98 2024 $13.95 $15.62 $15.53 $16.82 $7.15 $20.55 $21.36 $23.60 $25.61 $27.68 $29.48 $18.42 Cumulative Share Repurchase/Share Cumulative Dividends/Share TBVPCS The growth in TBV per common share (TBVPCS(1)) is attributed to: ▪ Minimally dilutive and strategic acquisitions in critical new markets ▪ Stable and competitive dividend ▪ 112th consecutive quarter ▪ Historical Payout Ratio of 30% to 40% ▪ 1.6 million shares available to be repurchased ▪ Total repurchases of 1,383,238 shares for the year ended December 31, 2024. (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. Growth Since 2013 Tangible Book Value per Share 1 53.9% Total Capital Return per Share 139.0%

 
. . .Q4-24 Financial Highlights 10 (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. (2) CET1 ratio represents an estimate as of Q4-24. (3) Core NIM excludes purchase accounting and prepayment fee income. Financial Highlights $0.38 Core Diluted EPS(1) $83 million Net Interest Income 0.65% Core ROAA(1) 7.89% Core ROTCE(1) $0.51 Core PTPP Diluted EPS(1) 11.2% CET1 Ratio(2) ▪ Core net interest margin(3) expanded 4 basis points to 2.69% from 2.65%. ▪ Net interest income increased $1 million, or 5% on an annualized basis, from the linked quarter. ▪ Loan growth for the quarter totaled $96 million, or 4% on an annualized basis, reflecting a 20% increase in originations from the linked quarter to $515 million. The loan pipeline remained stable reflecting normal seasonality in Q4-24 at $307 million. ▪ Total deposits, excl. brokered deposits, increased $77 million, or 3% on an annualized basis. Total costs of deposits are trending downward with the 12/31/24 spot rate (2.17%) ending 15 bps lower than our quarterly average in Q4-24.

 
. . . 11 Quarterly Earnings Update

 
. . .Loan Portfolio Trends 12 Moderated Loan Growth in the Portfolio ($’millions) ▪ Q4-24 loan growth reflected seasonality and lower loan demand. ▪ Q1-25 loan growth anticipated to be similar to Q4-24. 5,354 5,323 5,325 5,273 5,288 944 915 858 842 902 666 677 616 661 648 2,980 2,965 2,978 3,003 3,050 5.40% 251 Q4-23 5.46% 246 Q1-24 5.46% 242 Q2-24 5.46% 243 Q3-24 5.38% 230 Q4-24 10,195 10,126 10,019 10,022 10,118 Average Loan Yield Home Equity & Consumer Residential C&I CRE Owner Occupied CRE Investor-Owned

 
. . .Diversified CRE Portfolio with Conservative Risk Profile ▪ Underlying collateral is diversified. ▪ Low concentration in the Multi-Family portfolio, which represents 7% of total assets. ▪ Maturity wall is modest and has a minimal impact: Our CRE Investor- Owned maturity wall, totaling $1.24 billion (or 12% of total loans), is set to mature in 2025 and 2026 with weighted average rates of 5.64% and 3.97%, for each respective cohort. The impact of repriced loans to-date has been benign. 13 CRE Investor-Owned Portfolio by Geography Notes: • All data represents CRE Investor-Owned balances, excluding purchase accounting marks and Construction as of December 31, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of December 31, 2024 divided by their most recent appraisal value, which is generally obtained at the time of origination. • WA DSCR represents the weighted average of net operating income on the property before debt service divided by the loan’s respective annual debt service based on the most recent credit review of the borrower. • WA rate includes borrower fixed rate exposure for loans with swap contracts and excludes any benefit from back-to-back rate swaps. Footnotes: (1) Other includes underlying co-operatives, single purpose, stores and some living units / mixed use, investor-owned 1-4 family, land / development, and other. (2) Rent-regulated multi-family is defined as buildings with >50% rent-regulated units. 32% 27% 26% 9% NY PA/DE NJ 3% MA 3% MD/DC Other De minimis underlying concentrations: • NYC rent-regulated(2) multi-family: $30.8 million • NYC Office Central Business District (CBD): $7.0 million CRE Investor-Owned - Maturity Wall Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans 2025 776 5.64 56.27 1.69 7.67% 2026 465 3.97 51.79 2.21 4.59% Total 1,240 5.02 54.59 1.88 12.26% CRE Investor-Owned - Collateral Details $'millions CRE: Investor-Owned % of Total WA LTV WA DSCR Office 1,056 23.3% 55.5 1.82 Retail 1,025 22.6% 53.4 1.98 Multi-Family 888 19.6% 62.5 1.62 Industrial / Warehouse 695 15.3% 49.6 2.14 Hospitality 177 3.9% 47.4 2.05 Other (1) 698 15.4% 45.0 1.83 CRE: Investor-Owned 4,539 100.0% 53.5 1.88 Construction 749 CRE IO and Construction Total 5,288

 
. . . Strong asset quality trends driven by prudent loan growth and credit decisioning. Quarterly Credit Trends (1 of 2) 14 Non-Performing Loans and Assets ($’000)(1) Special Mention and Substandard Loans ($’000) Note #1: At December 31, 2024, of the Special Mention loans and Substandard loans represented above, 95.4% and 71.4% were current on payments, respectively. Note #2: Peer data is on a one quarter lag. (1) PCD loans are not included in these metrics. Refer to Asset Quality section in the Earnings Release for additional information. Criticized loans as a % of total loans remain low at 1.56% as of Q4-24 compared to 2.06% as of Q4-19 (pre-pandemic). 0.20% 1,8110.26% 0.19% 8,783 Q4-23 0.31% 0.23% 8,783 Q1-24 0.31% 0.23% 7,183 Q2-24 0.25% 0.19% Q3-24 0.27% 0.22% Q4-24 NPL to total loans NPA to total assets NPL - single CRE relationship OREO Non-performing loans 23,39817,582 22,703 106,551 98,240 92,847 103,384 103,534 40,386 69,283 49,767 85,721 54,526 2.96% Q4-23 2.99% Q1-24 3.45% Q2-24 3.58% Q3-24 Q4-24 1.44% 1.65% 1.42% 1.89% 1.56% Peer Average Criticized Loans / Total Loans OCFC Criticized Loans / Total Loans Special Mention Substandard OCFC 10-Year (2015-2024) Average Criticized Loans / Total Loans = 2.24% 25,252 27,596 Includes $1.8MM OREO balance from the acquisition of Spring Garden.

 
. . .Quarterly Credit Trends (2 of 2) 15 Loan Allowance for Credit Losses (ACL) Plus PCD & General Credit Marks / Total Loans NCOs / (Recoveries) and Provision for Credit Loss Expense ($’000) 0.07% 0.66% Q4-23 0.07% 0.66% Q1-24 0.06% 0.69% Q2-24 0.06% 0.69% Q3-24 0.06% 0.73% Q4-24 0.73% 0.73% 0.75% 0.75% 0.79% PCD & General Credit Marks ACL 35 349 1,452 -88 -158 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Net Charge-offs (Recoveries)Provision Expense 3,153 3,114 591 517 3,467 Includes $1.4MM non-core day 1 provision relating to Spring Garden acquisition. Note: The allowance for credit losses plus the unamortized credit and PCD marks amounted to $79.6 million or 0.79% of total loans at Q4-24, as compared to $74.7 million, or 0.73% of total loans at Q4-23. 2,041

 
. . . COVID-19 Pandemic Track Record of Strong Credit Performance 16 ▪ From 2006 to 2024, inclusive of the Global Financial Crisis, Hurricane Sandy, and the COVID-19 Pandemic, OCFC’s NCO to average loans totaled 12 bps per year compared to 71 bps for all commercial banks between $10 - $50 billion in assets from 2006 to Q3-24. ▪ From 2006 to 2024, peak net charge-offs to average loans for OCFC totaled 56 bps in 2011. Peak charge-offs for commercial banks between $10 - $50 billion in assets were 253 bps in 2009. Global Financial Crisis Hurricane Sandy Source: S&P Global. Note: Commercial bank reporting is on a one quarter lag. (1) Any period with net recoveries is denoted as 0% NCO / Avg Loans in the graph. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-24 Q2-24 Q3-24 Q4-24 OCFC NCO / Avg Loans Commercial Banks ($10-50 bn) NCO / Avg Loans (1)

 
. . . 38.00% 2.21% Q4-23 40.00% 2.31% Q1-24 42.00% 2.40% Q2-24 2.38% Q3-24 2.17% Q4-24 Deposit Trends 17 (1) Deposit beta is calculated as the increase in rate paid on total deposits per quarter divided by the incremental increase in the fed funds rate since January 1, 2022. Rate cuts between 6/30/24 and 12/31/24 reset the beta rate cycle for Q3-24 and Q4-24. ▪ Total deposits, excluding brokered deposits, increased $77 million from the prior quarter. ▪ Non-maturity deposits increased by $90 million (or 1%) from the prior quarter. ▪ The decrease in Q4-24 time deposits was primarily driven by brokered CD run-off of $126 million. ▪ We expect Q1-25 deposit growth to align with loan growth. Deposit Mix Has Stabilized ($’millions) Deposit Beta (1) Cost of Deposits (Spot) 2,445 2,320 2,368 2,221 2,081 1,399 1,260 1,116 1,072 1,066 1,022 1,151 1,210 1,289 1,301 3,912 3,866 3,668 3,896 4,001 1,657 1,640 1,633 1,638 1,617 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 10,435 10,237 9,994 10,116 10,066 Non-Int. Bearing Int. Bearing Checking Money Market Savings Time Deposits Deposit Beta and Cost Trend 38% 40% 42% Cost of Deposits Type of Account Q4-24 Avg. Dec 31 Spot Int. Bearing Checking 2.23% 2.11% Money Market 3.25% 3.00% Savings 0.79% 0.72% Time Deposits 4.34% 4.18% Total (incl. non-int. bearing) 2.32% 2.17%

 
. . .Net Interest Income and Net Interest Margin Trends 18 (1) Core NIM excludes purchase accounting and prepayment fee income. Core NIM(1) vs NIM NIM Bridge 2.82% 2.77% Q4-23 2.81% 2.77% Q1-24 2.71% 2.67% Q2-24 2.67% 2.65% Q3-24 2.69% 2.69% Q4-24 NIM Core NIM Net Interest Income ($’000) 87,824 Q4-23 86,224 Q1-24 82,263 Q2-24 82,219 Q3-24 83,329 Q4-24 Net Interest Income Headwinds ▪ Competitive market environment as peers compete on rate for quality credit. 0.04 Q3-24 NIM Rate environment, change in balances and funding mix, and other -0.02 Impact of purchase accounting Q4-24 NIM 2.67% 2.69% Tailwinds ▪ Deposit rate pressure easing with 12/31/24 spot rates lower than our quarterly average.

 
. . . Core Efficiency Ratio (1) Expense Discipline and Focused Investment 19 Core Non-Interest Expense (1) ($’000) 7,999 7,761 8,377 9,512 10,328 2,858 2,732 2,161 1,970 2,620 6,430 5,956 6,018 5,940 6,366 2,723 2,717 2,685 2,618 2,517 6,390 6,329 6,243 6,183 6,306 32,126 32,759 33,136 35,844 36,602 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 58,526 58,254 58,620 62,067 64,739 Compensation & employee benefits Occupancy & Equipment FDIC & regulatory assessments Data processing Professional fees Other Opex 60.02% Q4-23 61.05% Q1-24 63.47% Q2-24 66.00% Q3-24 67.74% Q4-24 1.71% 1.73% 1.75% 1.84% 1.90% Core Efficiency Ratio Core Non-Interest Expense to Average Assets (Annualized) (1For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. (2)Other Opex includes marketing, check card processing, amortization of intangibles, and other expenses. ▪ Q4-24 core non-interest expenses increased by $2.7 million (or 4.3%) from the prior quarter to $64.7 million. ▪ Reflects compensation and data processing costs from acquisitions made during the second half of the year. ▪ We expect a seasonal increase in Q1-25 related to annual compensation actions and contractual vendor increases. (2)

 
. . .Generating Consistent Returns 20 Book Value and Tangible Book Value per Common Share ($)(1) Core ROAA(1), ROTE(1), and ROTCE(1) • Tangible book value per common share increased by $0.63 (or 3%) compared to the same quarter last year. • Capital remains strong and above “well capitalized” levels. • 1.6 million shares available to be repurchased. Capital Management ($’millions)(2) 18.35 18.63 18.93 19.28 18.98 27.96 28.32 28.67 29.02 29.08 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Book Value per Share Tangible Book Value per Common Share 9.20% 9.67% 0.77% Q4-23 8.91% 9.36% 0.76% Q1-24 7.86% 8.26% 0.68% Q2-24 7.85% 8.24% 0.69% Q3-24 7.51% 7.89% 0.65% Q4-24 Core ROTE Core ROTCE Core ROAA 12 12 12 12 12 15 5 8.8% 10.9% 0 Q4-23 8.9% 11.0% Q1-24 9.1% 11.2% Q2-24 9.1% 11.3% 1 Q3-24 9.1% 11.2% 0 Q4-24 Tangible Stockholders’ Equity to Tangible Assets1 CET1 Share Repurchases Common Dividend (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. (2) CET1 ratio represents an estimate as of Q4-24. 9.069.109.082 8.80

 
. . .Management Q1-25 Outlook 21 Loans Deposits Operating Expenses Net Interest Income • Q1-25 growth may be slower. We expect mid-single digit growth in 2025. • Maintain loan-to-deposit ratio ~100% for the entire year. Low-single digit annualized growth in Q1-25 Growth consistent with loan growth Increase to run-rate Stable to modest uptick Key Assumptions / Commentary • We expect a modest seasonal uptick in Q1-25 primarily driven annual compensation actions and contractual vendor increases. • We continue to recruit revenue producing talent and the success of those initiatives may further increase our run-rate beyond Q1-25. • Subject to expected growth and interest rate trends. Other Income Relatively stable Credit Continued benign outlook Capital Robust CET1 ratio (>10%)

 
. . . 22 Appendix

 
. . .Conservative Risk Profile of CRE IO Office & Construction 23 Portfolio Highlights • 97% of Office & Construction loans are pass- rated (not classified or criticized). • 93% of Office & Construction loans are classified as non-Central Business District loans. • CBD loans comprise <1% of total assets and have a weighted average LTV of 53.5 and weighted average DSCR of 1.85. • Office portfolio is primarily secured by small properties with >70% of the portfolio secured by properties of 300K SF or smaller. • The average loan size of the office portfolio is $4.3 million with 49% of the portfolio under $1 million and 80% under $5 million. Notes: • All data represents CRE Investor-Owned balances, excluding purchase accounting marks and Construction as of December 31, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of December 31, 2024 divided by their most recent appraisal value, which is generally obtained at the time of origination. • WA DSCR represents the weighted average of net operating income on the property before debt service divided by the loan’s respective annual debt service based on the most recent credit review of the borrower. In the above tables, Construction consists of all property segments (e.g., co-op, hospitality, industrial / warehouse, etc). CRE Investor-Owned: Office + Construction $'millions Balance % of Office % of Total Loans WA LTV WA DSCR General Office 516 48.8% 5.1% 50.1 1.94 Life Sciences & Medical 282 26.7% 2.8% 56.6 1.57 Credit Tenant 259 24.5% 2.6% 65.2 1.50 Office 1,056 100.0% 10.4% 55.5 1.73 Construction (all property segments) 749 7.4% Office + Construction 1,805 17.8% Central Business District (CBD): Office + Construction $'millions Balance % of Total WA LTV WA DSCR Credit Tenant 43 36.5% 60.0 1.86 General Office 33 28.2% 51.3 2.46 Life Sciences & Medical 42 35.3% 48.6 1.36 CBD - Office & Construction 118 100.0% 53.5 1.85 CRE Investor-Owned: Office + Construction CBD Bifurcation $'millions Balance % of Total % of CBD MA 45 2.5% 38.1% NJ 43 2.4% 36.5% PA 23 1.3% 19.5% NY 7 0.4% 5.9% Central Business District 118 6.5% 100.0% Non Central Business District 1,688 93.5% Office + Construction 1,805 100.0%

 
. . . Hurricane Sandy Global Financial Crisis COVID-19 Pandemic Northeast Outperforms Through Credit Cycles… 24 ▪ Historically, net charge-offs for Northeastern headquartered banks have greatly outperformed major exchange traded U.S. banks headquartered in other regions ▪ Median net charge-offs / average assets for Northeastern banks averaged 20 bps during the Global Financial Crisis compared to 50 bps for other regions. Source: SNL Financial. Option 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Northeast NCO / Avg Assets Mid-Atlantic NCO / Avg Assets Southeast NCO / Avg Assets Midwest NCO / Avg Assets Southwest NCO / Avg Assets West NCO / Avg Assets Q3’24 NCOs Southeast 0.09% Midwest 0.08% Mid Atlantic 0.06% Northeast 0.06% Southwest 0.05% West 0.04% 0.29% 0.32% 0.51% 0.63% 0.80% 1.43% Northeast Southwest Mid Atlantic Midwest Southeast West Multiple of Northeast GFC Peak NCOs 1.1x 1.8x 2.2x 4.9x2.8x

 
. . .…With a Similar Story in Commercial Real Estate Portfolios 25 ▪ Northeastern banks’ CRE portfolio net charge-offs have also historically outperformed major exchange traded banks in other regions ▪ Median CRE net charge-offs / average assets for Northeastern banks averaged 2 bps during the Global Financial Crisis compared to 6 bps for other regions Source: SNL Financial. GFC Peak CRE NCOs Option 1 Hurricane Sandy Global Financial Crisis COVID-19 Pandemic 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Northeast NCO / Avg Assets Mid-Atlantic NCO / Avg Assets Southeast NCO / Avg Assets Midwest NCO / Avg Assets Southwest NCO / Avg Assets West NCO / Avg Assets 0.03% 0.04% 0.09% 0.10% 0.11% 0.16% Northeast Southwest Southeast Mid Atlantic Midwest West 1.3x 3.3x3.0x 5.7x3.9x Multiple of Northeast

 
. . .Non-GAAP Reconciliations (1 of 2) Non-GAAP Reconciliation For the Three Months Ended $'000 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Core Earnings: Net income available to common stockholders (GAAP) 20,905 24,112 23,369 27,663 26,678 (Less) add non-recurring and non-core items: Spring Garden opening provision for credit losses 1,426 - - - - Net loss (gain) on equity investments 5 (1,420) (887) (1,923) (2,176) Net gain on sale of trust business - (1,438) - (1,162) - FDIC special assessment - - - 418 1,663 Merger related expenses 110 1,669 - - - Income tax (benefit) expense on items (388) 270 188 642 129 Core earnings (Non-GAAP) 22,058 23,193 22,670 25,638 26,294 Income tax expense 5,083 7,464 7,082 10,637 8,591 Provision for credit losses 3,467 517 3,114 591 3,153 Less: non-core provision for credit losses 1,426 - - - - Less: income tax (benefit) expense on non-core items (388) 270 188 36,224 129 Core earnings PTPP (Non-GAAP) 29,570 30,904 32,678 36,224 37,909 Core diluted earnings per share 0.38 0.39 0.39 0.44 0.45 Core earnings PTPP diluted earnings per share 0.51 0.53 0.56 0.62 0.65 Core Ratios (Annualized): Return on average assets 0.65% 0.69% 0.68% 0.76% 0.77% Return on average tangible stockholders' equity 7.51 7.85 7.86 8.91 9.20 Return on average tangible common equity 7.89 8.24 8.26 9.36 9.67 Eff iciency ratio 67.74 66.00 63.47 61.05 60.02

 
. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Tangible Equity Total stockholders' equity 1,702,757 1,694,508 1,676,669 1,665,837 1,661,945 Less: Goodw ill 523,308 506,146 506,146 506,146 506,146 Intangibles 12,680 7,056 7,859 8,669 9,513 Tangible stockholders' equity 1,166,769 1,181,306 1,162,664 1,151,022 1,146,286 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,111,242 1,125,779 1,107,137 1,095,495 1,090,759 Tangible Assets Total Assets 13,421,247 13,488,483 13,321,755 13,418,978 13,538,253 Less: Goodw ill 523,308 506,146 506,146 506,146 506,146 Intangibles 12,680 7,056 7,859 8,669 9,513 Tangible assets 12,885,259 12,975,281 12,807,750 12,904,163 13,022,594

 
v3.24.4
Document and Entity Information
Jan. 23, 2025
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 23, 2025
Entity Registrant Name OCEANFIRST FINANCIAL CORP.
Entity Incorporation, State or Country Code DE
Entity File Number 001-11713
Entity Tax Identification Number 22-3412577
Entity Address, Address Line One 110 West Front Street
Entity Address, City or Town Red Bank
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07701
City Area Code 732
Local Phone Number 240-4500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001004702
Amendment Flag false
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common stock, $0.01 par value per share
Trading Symbol OCFC
Security Exchange Name NASDAQ
Depositary Shares  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
Trading Symbol OCFCP
Security Exchange Name NASDAQ
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