Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC

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): July 18, 2024

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 class

Trading symbol

Name of each exchange in which registered

Common stock, $0.01 par value per share

OCFC

NASDAQ

Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)

OCFCP

NASDAQ

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 OPERATIONS AND FINANCIAL CONDITION

On July 18, 2024, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01 REGULATION FD DISCLOSURE

The Company is scheduled to make presentations to current and prospective investors after July 18, 2024. 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 its Board of Directors declared a quarterly cash dividend of $0.4375 per share for every depositary share, representing 1/40th interest in the Series A Preferred Stock, payable on August 15, 2024 to stockholders of record on July 31, 2024.

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 August 16, 2024 to the stockholders of record at the close of business on August 5, 2024.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS


(d)	EXHIBITS

99.1	Press Release dated	July 18, 2024
99.2	Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after July 18, 2024.

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.

Dated:	July 18, 2024	/s/ Patrick S. Barrett
		Patrick S. Barrett
		Executive Vice President and Chief Financial Officer


						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 SECOND QUARTER

FINANCIAL RESULTS

RED BANK, NEW JERSEY, July 18, 2024 - 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 $23.4 million, or $0.40 per diluted share, for the three months ended June 30, 2024, a decrease from $26.8 million, or $0.45 per diluted share, for the corresponding prior year period, and $27.7 million, or $0.47 per diluted share, for the prior linked quarter. For the six months ended June 30, 2024, the Company reported net income available to common stockholders of $51.0 million, or $0.87 per diluted share, a decrease from $53.7 million, or $0.91 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):


	For the Three Months Ended,						For the Six Months Ended,
Performance Ratios (Annualized):	June 30,		March 31,		June 30,		June 30,		June 30,
	2024		2024		2023		2024		2023
Return on average assets	0.70	%	0.82	%	0.80	%	0.76	%	0.81	%
Return on average stockholders’ equity	5.61		6.65		6.61		6.13		6.69
Return on average tangible stockholders’ equity (a)	8.10		9.61		9.70		8.86		9.84
Return on average tangible common equity (a)	8.51		10.09		10.21		9.30		10.37
Efficiency ratio	62.86		59.56		62.28		61.17		61.53
Net interest margin	2.71		2.81		3.02		2.76		3.17

(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 three and six months ended June 30, 2024 were $22.7 million and $48.3 million, respectively, or $0.39 and $0.83 per diluted share, a decrease from $27.2 million and $59.9 million, or $0.46 and $1.01 per diluted share, for the corresponding prior year periods, and a decrease from $25.6 million, or $0.44 per diluted share, for the prior linked quarter.

Core earnings PTPP1 for the three and six months ended June 30, 2024 was $32.7 million and $68.9 million, respectively, or $0.56 and $1.18 per diluted share, as compared to $37.6 million and $83.7 million, or $0.64 and $1.42 per diluted share, for the corresponding prior year periods, and $36.2 million, or $0.62 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:


	For the Three Months Ended,									For the Six Months Ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
Core Ratios1 (Annualized):	2024			2024			2023			2024			2023
Return on average assets	0.68		%	0.76		%	0.81		%	0.72		%	0.90		%
Return on average tangible stockholders’ equity	7.86			8.91			9.84			8.38			10.98
Return on average tangible common equity	8.26			9.36			10.36			8.81			11.56
Efficiency ratio	63.47			61.05			61.94			62.24			59.13
Core diluted earnings per share	$	0.39		$	0.44		$	0.46		$	0.83		$	1.01
Core PTPP diluted earnings per share	0.56			0.62			0.64			1.18			1.42

Key developments for the recent quarter are described below:

•Asset Quality: Asset quality metrics remain strong as criticized and classified assets, non-performing loans, and loans 30 to 89 days past due as a percentage of total loans receivable were 1.42%, 0.33%, and 0.10%, respectively. These metrics continue to reflect strong credit performance and remain low compared to pre-pandemic levels.

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, 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. Refer to “Explanation of Non-GAAP Financial Measures”, “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

•Capital Accretion: Common equity tier 1 capital ratio2, book value and tangible book value per share were 11.2%, $28.67 and $18.93, respectively, and increased approximately 20 basis points, $0.35 and $0.30 from the prior linked quarter.3

•Share repurchases: The Company repurchased 338,087 shares totaling $5.0 million. The Company has 1,638,524 shares available for repurchase under the authorized repurchase program.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our current quarter results reflected prudent balance sheet management and expense discipline. As rates are elevated and the yield curve remains inverted, net interest margin compressed during the quarter, but the pace of margin compression is slowing. Additionally, our credit quality continues to remain robust, we grew capital, and continued share repurchases during the quarter.” Mr. Maher added, “The Company is well positioned to bolster shareholder value through growth in the second half of the year.”

The Company’s Board of Directors declared its 110th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 16, 2024 to common stockholders of record on August 5, 2024. The Company’s Board of Directors also 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 August 15, 2024 to preferred stockholders of record on July 31, 2024.

2 Estimated.

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.

Results of Operations

The current quarter net interest income and margin were impacted by a mix-shift to and repricing of higher cost funding. Deposit betas increased modestly to 42%, from 40% in the prior linked quarter.4 Additionally, the current quarter provision for credit losses includes the impact of an additional $1.6 million charge-off on the single commercial real estate relationship that was previously moved to non-accrual and partially charged-off in 2023. The collateral related to the noted credit is currently under an agreement to sell, which is expected to occur during the third quarter.

Net Interest Income and Margin

Three months ended June 30, 2024 vs. June 30, 2023

Net interest income decreased to $82.3 million, from $92.1 million, primarily reflecting the net impact of the higher interest rate environment.

Net interest margin decreased to 2.71%, from 3.02%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05%, respectively. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets.

Average interest-earning assets decreased by $46.3 million due to balance sheet contraction while the average yield for interest-earning assets increased to 5.25%, from 4.91%.

The cost of average interest-bearing liabilities increased to 3.14%, from 2.39%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 1.52%. Average interest-bearing liabilities increased by $149.6 million, primarily due to an increase in total deposits, partly offset by a decrease in total borrowings.

4 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021).

Six months ended June 30, 2024 vs. June 30, 2023

Net interest income decreased to $168.5 million, from $190.9 million, reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.76%, from 3.17%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.

Average interest-earning assets increased by $146.4 million, primarily driven by securities growth of $135.4 million, while the average yield increased to 5.25%, from 4.80%.

The cost of average interest-bearing liabilities increased to 3.09%, from 2.08%. The total cost of deposits (including non-interest bearing deposits) increased to 2.34%, from 1.21%. Average interest-bearing liabilities increased by $392.0 million. The drivers for the three month periods, described above, were also the drivers for the six month periods.

Three months ended June 30, 2024 vs. March 31, 2024

Net interest income decreased by $4.0 million, primarily due to an increase in cost of funds and lower average-interest earning assets. Net interest margin decreased to 2.71%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.

Average interest-earning assets decreased by $146.6 million, primarily due to a decrease in loans. The yield on average interest-earning assets decreased to 5.25%, from 5.26%.

The total cost of average interest-bearing liabilities increased to 3.14%, from 3.03%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 2.31%. Average interest-bearing liabilities decreased by $129.4 million, primarily due to decreases in brokered time deposits and high yield savings accounts, partly offset by an increase in borrowings.

Provision for Credit Losses

Provision for credit losses for the three and six months ended June 30, 2024 was $3.1 million and $3.7 million, respectively, as compared to $1.2 million and $4.2 million for the corresponding prior year periods, and $591,000 in the prior linked quarter. The current quarter provision was driven by the

additional charge-off previously noted and changes in the external macro-economic forecasts, partly offset by lower loan balances.

Net loan charge-offs were $1.5 million and $1.8 million for the three and six months ended June 30, 2024, respectively, as compared to net loan charge-offs of $123,000 and $76,000 for the three and six months ended June 30, 2023. The current quarter includes the impact of an additional $1.6 million charge-off related to a single commercial real estate relationship, as previously noted. Net loan charge-offs were $349,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.

Non-interest Income

Three months ended June 30, 2024 vs. June 30, 2023

Other income increased to $11.0 million, as compared to $8.9 million. Other income was favorably impacted by non-core operations related to net gains/losses on equity investments of $887,000 for the current quarter, and adversely impacted by non-core operations of $559,000 for the prior year quarter.

Excluding non-core operations, other income increased by $611,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $544,000 and net gain on sale of loans of $387,000, partially offset by a decrease in fees and service charges of $587,000 on lower title activity and retail deposit fees.

Six months ended June 30, 2024 vs. June 30, 2023

Other income increased to $23.3 million, as compared to $11.0 million. The current period was favorably impacted by non-core operations of $4.0 million related to net gains on equity investments and sale of a portion of the Company’s trust business. The prior year was adversely impacted by non-core operations of $8.1 million, primarily related to losses on sale of investments.

Excluding non-core operations, other income increased by $241,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $1.1 million, which included one-time death benefits in the current period, and net gain on sale of loans of $724,000. This was partially

offset by a decrease in fees and service charges of $1.3 million, which was driven by the same factors as noted above.

Three months ended June 30, 2024 vs. March 31, 2024

Other income in the prior linked quarter was $12.3 million and was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and sale of a portion of the Company’s trust business. Excluding non-core operations, other income increased by $897,000, primarily due to an increase in fees and service charges of $542,000, which was driven by higher title activity.

Non-interest Expense

Three months ended June 30, 2024 vs. June 30, 2023

Operating expenses decreased $4.3 million to $58.6 million, from $62.9 million. The primary drivers were decreases in professional fees of $2.9 million and compensation and employee benefits expenses of $1.1 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.

Six months ended June 30, 2024 vs. June 30, 2023

Operating expenses decreased to $117.3 million, as compared to $124.2 million. Operating expenses were adversely impacted by an FDIC special assessment in the current year of $418,000, and merger related and net branch consolidation expenses of $92,000 in the prior year period.

Excluding non-core operations, operating expenses decreased by $7.3 million. The primary drivers were decreases in professional fees of $5.3 million and compensation and employee benefits expenses of $2.2 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.

Three months ended June 30, 2024 vs. March 31, 2024

Operating expenses in the prior linked quarter were $58.7 million and included non-core operations of $418,000, related to an FDIC special assessment. Excluding non-core operations,

operating expenses increased by $366,000.

Income Tax Expense

The provision for income taxes was $7.1 million and $17.7 million for the three and six months ended June 30, 2024, respectively, as compared to $9.0 million and $17.7 million for the same prior year periods, and $10.6 million for the prior linked quarter. The effective tax rate was 22.5% and 25.0% for the three and six months ended June 30, 2024, respectively, as compared to 24.4% and 24.0% for the same prior year periods, and 27.1% for the prior linked quarter. The prior linked quarter and current year’s effective tax rates were negatively impacted by 3.0% and 1.6%, respectively, due to a non-recurring write-off of a deferred tax asset of $1.2 million.

Financial Condition

June 30, 2024 vs. December 31, 2023

Total assets decreased by $216.5 million to $13.32 billion, from $13.54 billion, primarily due to decreases in loans and debt securities. Total loans decreased by $175.3 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $165.3 million driven by loan payoffs and lower loan originations. The loan pipeline increased by $76.1 million to $259.1 million from $183.0 million. Held-to-maturity debt securities decreased by $53.9 million to $1.11 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale decreased $32.4 million to $721.5 million, from $753.9 million, primarily due to principal reductions and maturities. Other assets increased by $23.3 million to $203.0 million, from $179.7 million, primarily due to an increase in the market values of derivatives associated with customer interest rate swap programs.

Total liabilities decreased by $231.2 million to $11.65 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $440.9 million to $9.99 billion, from $10.43 billion, primarily due to decreases in high-yield savings accounts of $283.1 million and interest bearing deposits of $243.9 million. Time deposits decreased to $2.37 billion, from $2.45

billion, representing 23.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits which decreased by $229.9 million, offset by increases in retail time deposits of $161.7 million. The loan-to-deposit ratio was 100.3%, as compared to 97.7%. Federal Home Loan Bank (“FHLB”) advances decreased by $59.3 million to $789.3 million, from $848.6 million due to a mix shift in funding sources to other borrowings, which increased by $228.0 million to $424.5 million, from $196.5 million, as a result of lower cost funding availability.

Other liabilities increased by $31.4 million to $332.1 million, from $300.7 million, primarily due to an increase in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

Capital levels remain strong and in excess of “well-capitalized” regulatory levels at June 30, 2024, including the Company’s estimated common equity tier one capital ratio which increased to 11.2%, up approximately 35 basis points from December 31, 2023.

Total stockholders’ equity increased to $1.68 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of share repurchases and dividends. For the six months ended June 30, 2024, the Company repurchased 1,295,914 shares totaling $20.1 million representing a weighted average cost of $15.35. The Company had 1,638,524 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $3.7 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company actively monitors its goodwill as the challenging economic environment persists and continues to pressure the Company’s stock price and industry valuations. The Company customarily performs its annual goodwill impairment assessment during the third quarter.

The Company’s tangible common equity3 increased by $11.6 million to $1.11 billion. The Company’s stockholders’ equity to assets ratio was 12.59% at June 30, 2024, and tangible common

equity to tangible assets ratio increased by 26 basis points during the quarter to 8.64%, primarily due to the drivers described above.

Book value per common share increased to $28.67, as compared to $27.96. Tangible book value per common share3 increased to $18.93, as compared to $18.35.

Asset Quality

June 30, 2024 vs. December 31, 2023

Overall asset quality metrics remained stable. The Company’s non-performing loans increased to $33.4 million from $29.5 million and represented 0.33% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 205.97%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $9.7 million, from $19.2 million. Criticized and classified assets decreased to $142.6 million, from $146.9 million. The Company’s allowance for loan credit losses was 0.69% of total loans, as compared to 0.66%. Refer to` “Provision for Credit Losses” section for further discussion.

The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $30.6 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 225.10%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $8.5 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $75.0 million, or 0.75% of total loans, as compared to $74.7 million, or 0.73% of total loans.

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.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, July 19, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 619002. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 217614, from one hour after the end of the call until August 16, 2024. 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.

* * *

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 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, 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 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2023, 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.

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)


	June 30,		March 31,		December 31,		June 30,
	2024		2024		2023		2023
	(Unaudited)		(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	181,198	$	130,422	$	153,718	$	457,747

Debt securities available-for-sale, at estimated fair value	721,484		744,944		753,892		452,016
Debt securities held-to-maturity, net of allowance for securities credit losses of $958 at June 30, 2024, $1,058 at March 31, 2024, $1,133 at December 31, 2023 and $964 at June 30, 2023 (estimated fair value of $1,003,850 at June 30, 2024, $1,029,965 at March 31, 2024, $1,068,438 at December 31, 2023 and $1,109,756 at June 30, 2023)	1,105,843		1,128,666		1,159,735		1,222,507
Equity investments	104,132		103,201		100,163		96,452
Restricted equity investments, at cost	92,679		85,689		93,766		105,305
Loans receivable, net of allowance for loan credit losses of $68,839 at June 30, 2024, $67,173 at March 31, 2024, $67,137 at December 31, 2023 and $61,791 at June 30, 2023	9,961,117		10,068,209		10,136,721		10,030,106
Loans held-for-sale	2,062		4,702		5,166		4,200
Interest and dividends receivable	50,976		52,502		51,874		47,933

Premises and equipment, net	117,392		119,211		121,372		124,139

Bank owned life insurance	267,867		266,615		266,498		263,836

Assets held for sale	28		28		28		3,608
Goodwill	506,146		506,146		506,146		506,146
Core deposit intangible	7,859		8,669		9,513		11,476
Other assets	202,972		199,974		179,661		213,432
Total assets	$	13,321,755	$	13,418,978	$	13,538,253	$	13,538,903
Liabilities and Stockholders’ Equity
Deposits	$	9,994,017	$	10,236,851	$	10,434,949	$	10,158,337
Federal Home Loan Bank advances	789,337		658,436		848,636		1,091,666
Securities sold under agreements to repurchase with customers	80,000		66,798		73,148		74,452
Other borrowings	424,490		425,722		196,456		195,925
Advances by borrowers for taxes and insurance	25,168		28,187		22,407		27,839
Other liabilities	332,074		337,147		300,712		364,401
Total liabilities	11,645,086		11,753,141		11,876,308		11,912,620
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity	1,675,885		1,665,112		1,661,163		1,625,435
Non-controlling interest	784		725		782		848
Total stockholders’ equity	1,676,669		1,665,837		1,661,945		1,626,283
Total liabilities and stockholders’ equity	$	13,321,755	$	13,418,978	$	13,538,253	$	13,538,903

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)


	For the Three Months Ended,						For the Six Months Ended,
	June 30,		March 31,		June 30,		June 30,		June 30,
	2024		2024		2023		2024		2023
	\|---------------------- (Unaudited) ----------------------\|						\|---------- (Unaudited) -----------\|
Interest income:
Loans	$	136,049	$	137,121	$	129,104	$	273,170	$	250,824
Debt securities	19,039		19,861		14,320		38,900		28,606
Equity investments and other	4,338		4,620		6,672		8,958		9,700
Total interest income	159,426		161,602		150,096		321,028		289,130
Interest expense:
Deposits	60,071		59,855		37,934		119,926		59,264
Borrowed funds	17,092		15,523		20,053		32,615		38,955
Total interest expense	77,163		75,378		57,987		152,541		98,219
Net interest income	82,263		86,224		92,109		168,487		190,911
Provision for credit losses	3,114		591		1,229		3,705		4,242
Net interest income after provision for credit losses	79,149		85,633		90,880		164,782		186,669
Other income:
Bankcard services revenue	1,571		1,416		1,544		2,987		2,874
Trust and asset management revenue	419		526		645		945		1,257
Fees and service charges	5,015		4,473		5,602		9,488		10,761



Net gain on sales of loans	420		357		33		777		53
Net gain (loss) on equity investments	887		1,923		(559)		2,810		(7,360)

Income from bank owned life insurance	1,726		1,862		1,182		3,588		2,463
Commercial loan swap income	241		138		—		379		701
Other	706		1,591		481		2,297		252
Total other income	10,985		12,286		8,928		23,271		11,001
Operating expenses:
Compensation and employee benefits	33,136		32,759		34,222		65,895		68,142
Occupancy	5,175		5,199		5,265		10,374		10,504
Equipment	1,068		1,130		1,101		2,198		2,306
Marketing	1,175		990		961		2,165		1,943
Federal deposit insurance and regulatory assessments	2,685		3,135		2,465		5,820		4,214
Data processing	6,018		5,956		6,165		11,974		12,319
Check card processing	1,075		1,050		1,214		2,125		2,495
Professional fees	2,161		2,732		5,083		4,893		10,181

Amortization of core deposit intangible	810		844		994		1,654		2,021
Branch consolidation expense, net	—		—		—		—		70
Merger related expenses	—		—		—		—		22
Other operating expense	5,317		4,877		5,460		10,194		10,022
Total operating expenses	58,620		58,672		62,930		117,292		124,239
Income before provision for income taxes	31,514		39,247		36,878		70,761		73,431
Provision for income taxes	7,082		10,637		8,996		17,719		17,650
Net income	24,432		28,610		27,882		53,042		55,781
Net income (loss) attributable to non-controlling interest	59		(57)		85		2		101
Net income attributable to OceanFirst Financial Corp.	24,373		28,667		27,797		53,040		55,680
Dividends on preferred shares	1,004		1,004		1,004		2,008		2,008
Net income available to common stockholders	$	23,369	$	27,663	$	26,793	$	51,032	$	53,672
Basic earnings per share	$	0.40	$	0.47	$	0.45	$	0.87	$	0.91
Diluted earnings per share	$	0.40	$	0.47	$	0.45	$	0.87	$	0.91
Average basic shares outstanding	58,356		58,789		59,147		58,489		58,988
Average diluted shares outstanding	58,357		58,791		59,153		58,490		59,038

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(dollars in thousands)


LOANS RECEIVABLE			At
			June 30,		March 31,		December 31,		September 30,		June 30,
			2024		2024		2023		2023		2023
Commercial:
Commercial real estate - investor			$	5,324,994	$	5,322,755	$	5,353,974	$	5,334,279	$	5,319,686
Commercial real estate - owner-occupied			857,710		914,582		943,891		957,216		981,618
Commercial and industrial			616,400		677,176		666,532		652,119		620,284
Total commercial			6,799,104		6,914,513		6,964,397		6,943,614		6,921,588
Consumer:
Residential real estate			2,977,698		2,965,276		2,979,534		2,928,259		2,906,556

Home equity loans and lines and other consumer ("other consumer")			242,526		245,859		250,664		251,698		255,486

Total consumer			3,220,224		3,211,135		3,230,198		3,179,957		3,162,042
Total loans			10,019,328		10,125,648		10,194,595		10,123,571		10,083,630

Deferred origination costs (fees), net			10,628		9,734		9,263		8,462		8,267
Allowance for loan credit losses			(68,839)		(67,173)		(67,137)		(63,877)		(61,791)
Loans receivable, net			$	9,961,117	$	10,068,209	$	10,136,721	$	10,068,156	$	10,030,106
Mortgage loans serviced for others			$	104,136	$	89,555	$	68,217	$	52,796	$	50,820
	At June 30, 2024 Average Yield
Loan pipeline (1):
Commercial	7.88	%	$	166,206	$	66,167	$	124,707	$	50,756	$	39,164
Residential real estate	6.96		80,330		57,340		49,499		66,682		58,022
Other consumer	8.81		12,586		13,030		8,819		13,795		18,621
Total	7.64	%	$	259,122	$	136,537	$	183,025	$	131,233	$	115,807


	For the Three Months Ended
	June 30,				March 31,		December 31,		September 30,		June 30,
	2024				2024		2023		2023		2023
	Average Yield
Loan originations:
Commercial	7.98	%	$	56,053	$	123,010	$	94,294	$	90,263	$	197,732
Residential real estate	6.74		121,388		78,270		113,227		92,299		100,542
Other consumer	8.99		16,970		11,405		16,971		17,019		22,487
Total	7.29	%	$	194,411	$	212,685	$	224,492	$	199,581	$	320,761
Loans sold			$	45,045	$	29,965	$	20,138	$	15,404	$	18,664

(1)Loan pipeline includes loans approved but not funded.


DEPOSITS	At
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Type of Account
Non-interest-bearing	$	1,632,521	$	1,639,828	$	1,657,119	$	1,827,381	$	1,854,136
Interest-bearing checking	3,667,837		3,865,699		3,911,766		3,708,874		3,537,834
Money market	1,210,312		1,150,979		1,021,805		860,025		770,440
Savings	1,115,688		1,260,309		1,398,837		1,484,000		1,229,897
Time deposits (1)	2,367,659		2,320,036		2,445,422		2,653,649		2,766,030
Total deposits	$	9,994,017	$	10,236,851	$	10,434,949	$	10,533,929	$	10,158,337

(1)Includes brokered time deposits of $401.6 million, $543.4 million, $631.5 million, $995.5 million, and $1.42 billion at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

OceanFirst Financial Corp.

ASSET QUALITY

(dollars in thousands)


ASSET QUALITY (1)	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Non-performing loans:
Commercial real estate - investor	$	19,761		$	21,507		$	20,820		$	20,723		$	13,000
Commercial real estate - owner-occupied	4,081			3,355			351			240			565
Commercial and industrial	434			567			304			1,120			199
Residential real estate	7,213			7,181			5,542			5,624			6,174
Other consumer	1,933			2,401			2,531			2,391			2,820

Total non-performing loans	$	33,422		$	35,011		$	29,548		$	30,098		$	22,758



Delinquent loans 30 to 89 days	$	9,655		$	17,534		$	19,202		$	20,591		$	3,136




Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)	$	8,677		$	9,075		$	6,420		$	6,679		$	6,882
Performing	27,184			15,619			15,361			7,645			7,516
Total modifications to borrowers experiencing financial difficulty (2)	$	35,861		$	24,694		$	21,781		$	14,324		$	14,398

Allowance for loan credit losses	$	68,839		$	67,173		$	67,137		$	63,877		$	61,791
Allowance for loan credit losses as a percent of total loans receivable (3)	0.69		%	0.66		%	0.66		%	0.63		%	0.61		%
Allowance for loan credit losses as a percent of total non-performing loans (3)	205.97			191.86			227.21			212.23			271.51
Non-performing loans as a percent of total loans receivable	0.33			0.35			0.29			0.30			0.23
Non-performing assets as a percent of total assets	0.25			0.26			0.22			0.22			0.17
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	16,058		$	16,700		$	16,122		$	18,640		$	18,872
Non-performing PCD loans	2,841			3,525			3,183			3,177			3,171
Delinquent PCD and non-performing loans 30 to 89 days	1,188			2,088			1,516			13,007			1,976


PCD modifications to borrowers experiencing financial difficulty (2)	759			764			771			750			755
Asset quality, excluding PCD loans (4)
Non-performing loans	30,581			31,486			26,365			26,921			19,587

Delinquent loans 30 to 89 days (excludes non-performing loans)	8,467			15,446			17,686			7,584			1,160





Modifications to borrowers experiencing financial difficulty (2)	35,102			23,930			21,010			13,574			13,643
Allowance for loan credit losses as a percent of total non-performing loans (3)	225.10		%	213.34		%	254.64		%	237.28		%	315.47		%
Non-performing loans as a percent of total loans receivable	0.31			0.31			0.26			0.27			0.19
Non-performing assets as a percent of total assets	0.23			0.23			0.19			0.20			0.14

(1)At June 30, 2024, non-performing loans included the remaining exposure of $7.2 million on the single commercial real estate relationship discussed in “Results of Operations”.

(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 prior bank 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 $6.1 million, $7.0 million, $7.5 million, $8.8 million and $9.8 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.

(4)All balances and ratios exclude PCD loans.

(continued)


NET LOAN CHARGE-OFFS	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Net loan charge-offs:
Loan charge-offs (1)	$	(1,600)		$	(441)		$	(98)		$	(8,379)		$	(206)
Recoveries on loans	148			92			63			108			83
Net loan charge-offs	$	(1,452)		$	(349)		$	(35)		$	(8,271)		$	(123)
Net loan charge-offs to average total loans (annualized)	0.06		%	0.01		%	—		%	0.33		%	—		%
Net loan charge-offs detail:
Commercial	$	(1,576)		$	(35)		$	9		$	(8,332)		$	(117)
Residential real estate	87			66			9			17			9
Other consumer	37			(380)			(53)			44			(15)

Net loan charge-offs	$	(1,452)		$	(349)		$	(35)		$	(8,271)		$	(123)

(1)The three months ended June 30, 2024 and September 30, 2023 includes charge-offs related to a single commercial real estate relationship of $1.6 million and $8.4 million, respectively.

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME


	For the Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 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	$	132,574	$	1,770	5.37	%	$	163,192	$	2,226	5.49	%	$	308,238	$	4,283	5.57	%
Securities (2)	2,058,711		21,607		4.22		2,098,421		22,255		4.27		1,931,032		16,709		3.47
Loans receivable, net (3)
Commercial	6,845,988		102,620		6.03		6,925,048		104,421		6.06		6,912,698		99,350		5.76
Residential real estate	2,978,749		29,072		3.90		2,974,468		28,596		3.85		2,895,629		25,936		3.58
Other consumer	246,024		4,357		7.12		248,396		4,104		6.65		255,785		3,818		5.99

Allowance for loan credit losses, net of deferred loan costs and fees	(58,270)		—		—		(59,141)		—		—		(53,327)		—		—
Loans receivable, net	10,012,491		136,049		5.46		10,088,771		137,121		5.46		10,010,785		129,104		5.17
Total interest-earning assets	12,203,776		159,426		5.25		12,350,384		161,602		5.26		12,250,055		150,096		4.91
Non-interest-earning assets	1,237,442						1,206,336						1,217,666
Total assets	$	13,441,218					$	13,556,720					$	13,467,721
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,862,060	21,043		2.19	%	$	3,925,965	20,795		2.13	%	$	3,718,289	11,964		1.29	%
Money market	1,183,429		10,482		3.56		1,092,003		9,172		3.38		694,311		3,678		2.12
Savings	1,164,203		2,604		0.90		1,355,718		4,462		1.32		1,248,312		389		0.12
Time deposits	2,337,458		25,942		4.46		2,414,063		25,426		4.24		2,458,872		21,903		3.57
Total	8,547,150		60,071		2.83		8,787,749		59,855		2.74		8,119,784		37,934		1.87
FHLB Advances	711,801		8,746		4.94		644,818		7,771		4.85		1,246,914		15,406		4.96
Securities sold under agreements to repurchase	72,305		478		2.66		68,500		411		2.41		71,752		192		1.07
Other borrowings (4)	541,266		7,868		5.85		500,901		7,341		5.89		284,460		4,455		6.28
Total borrowings	1,325,372		17,092		5.19		1,214,219		15,523		5.14		1,603,126		20,053		5.02
Total interest-bearing liabilities	9,872,522		77,163		3.14		10,001,968		75,378		3.03		9,722,910		57,987		2.39
Non-interest-bearing deposits	1,626,165						1,634,583						1,873,226
Non-interest-bearing liabilities(4)	268,078						247,129						244,892
Total liabilities	11,766,765						11,883,680						11,841,028
Stockholders’ equity	1,674,453						1,673,040						1,626,693
Total liabilities and equity	$	13,441,218					$	13,556,720					$	13,467,721
Net interest income			$	82,263					$	86,224					$	92,109
Net interest rate spread (5)					2.11	%					2.23	%					2.52	%
Net interest margin (6)					2.71	%					2.81	%					3.02	%
Total cost of deposits (including non-interest-bearing deposits)					2.37	%					2.31	%					1.52	%

(continued)


	For the Six Months Ended June 30,
	2024						2023
(dollars in thousands)	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	$	147,883	$	3,995	5.43	%	$	219,482	$	5,221	4.80	%
Securities (2)	2,078,566		43,863		4.24		1,943,148		33,085		3.43
Loans receivable, net (3)
Commercial	6,885,518		207,041		6.05		6,876,553		192,130		5.63
Residential real estate	2,976,608		57,668		3.87		2,883,904		51,097		3.54
Other consumer	247,210		8,461		6.88		259,573		7,597		5.90

Allowance for loan credit losses, net of deferred loan costs and fees	(58,705)		—		—		(51,948)		—		—
Loans receivable, net	10,050,631		273,170		5.46		9,968,082		250,824		5.07
Total interest-earning assets	12,277,080		321,028		5.25		12,130,712		289,130		4.80
Non-interest-earning assets	1,221,889						1,226,061
Total assets	$	13,498,969					$	13,356,773
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,894,013	41,838		2.16	%	$	3,790,413	18,234		0.97	%
Money market	1,137,716		19,653		3.47		699,940		5,437		1.57
Savings	1,259,960		7,066		1.13		1,308,381		723		0.11
Time deposits	2,375,760		51,369		4.35		2,144,514		34,870		3.28
Total	8,667,449		119,926		2.78		7,943,248		59,264		1.50
FHLB Advances	678,309		16,517		4.90		1,234,919		29,824		4.87
Securities sold under agreements to repurchase	70,403		889		2.54		71,825		282		0.79
Other borrowings (4)	521,084		15,209		5.87		295,248		8,849		6.04
Total borrowings	1,269,796		32,615		5.17		1,601,992		38,955		4.90
Total interest-bearing liabilities	9,937,245		152,541		3.09		9,545,240		98,219		2.08
Non-interest-bearing deposits	1,630,374						1,950,437
Non-interest-bearing liabilities (4)	257,603						242,864
Total liabilities	11,825,222						11,738,541
Stockholders’ equity	1,673,747						1,618,232
Total liabilities and equity	$	13,498,969					$	13,356,773
Net interest income			$	168,487					$	190,911
Net interest rate spread (5)					2.16	%					2.72	%
Net interest margin (6)					2.76	%					3.17	%
Total cost of deposits (including non-interest-bearing deposits)					2.34	%					1.21	%

(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) For the three and six months ended June 30, 2023, includes reclassifications to conform with current period presentation.

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

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

OceanFirst Financial Corp.

SELECTED QUARTERLY FINANCIAL DATA

(in thousands, except per share amounts)


	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Selected Financial Condition Data:
Total assets	$	13,321,755	$	13,418,978	$	13,538,253	$	13,498,183	$	13,538,903
Debt securities available-for-sale, at estimated fair value	721,484		744,944		753,892		453,208		452,016
Debt securities held-to-maturity, net of allowance for securities credit losses	1,105,843		1,128,666		1,159,735		1,189,339		1,222,507
Equity investments	104,132		103,201		100,163		97,908		96,452
Restricted equity investments, at cost	92,679		85,689		93,766		82,484		105,305
Loans receivable, net of allowance for loan credit losses	9,961,117		10,068,209		10,136,721		10,068,156		10,030,106

Deposits	9,994,017		10,236,851		10,434,949		10,533,929		10,158,337
Federal Home Loan Bank advances	789,337		658,436		848,636		606,056		1,091,666
Securities sold under agreements to repurchase and other borrowings	504,490		492,520		269,604		279,164		270,377
Total stockholders’ equity	1,676,669		1,665,837		1,661,945		1,637,604		1,626,283


	For the Three Months Ended,
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Selected Operating Data:
Interest income	$	159,426	$	161,602	$	160,434	$	158,410	$	150,096
Interest expense	77,163		75,378		72,610		67,414		57,987
Net interest income	82,263		86,224		87,824		90,996		92,109
Provision for credit losses	3,114		591		3,153		10,283		1,229
Net interest income after provision for credit losses	79,149		85,633		84,671		80,713		90,880
Other income (excluding activity related to debt and equity investments and sale of trust business)	10,098		9,201		9,685		9,310		9,487
Net gain (loss) on equity investments	887		1,923		2,176		1,452		(559)


Net gain on sale of trust business	—		1,162		—		—		—
Operating expenses (excluding FDIC special assessment)	58,620		58,254		58,526		64,484		62,930

FDIC special assessment	—		418		1,663		—		—


Income before provision for income taxes	31,514		39,247		36,343		26,991		36,878
Provision for income taxes	7,082		10,637		8,591		6,459		8,996
Net income	24,432		28,610		27,752		20,532		27,882
Net income (loss) attributable to non-controlling interest	59		(57)		70		(135)		85
Net income attributable to OceanFirst Financial Corp.	$	24,373	$	28,667	$	27,682	$	20,667	$	27,797
Net income available to common stockholders	$	23,369	$	27,663	$	26,678	$	19,663	$	26,793
Diluted earnings per share	$	0.40	$	0.47	$	0.46	$	0.33	$	0.45
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	1,086	$	921	$	1,604	$	1,745	$	1,152

(continued)


	At or For the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)	0.70	%	0.82	%	0.78	%	0.57	%	0.80	%
Return on average tangible assets (3) (4)	0.73		0.85		0.81		0.59		0.83
Return on average stockholders’ equity (3)	5.61		6.65		6.41		4.75		6.61
Return on average tangible stockholders’ equity (3) (4)	8.10		9.61		9.33		6.93		9.70
Return on average tangible common equity (3) (4)	8.51		10.09		9.81		7.29		10.21
Stockholders’ equity to total assets	12.59		12.41		12.28		12.13		12.01
Tangible stockholders’ equity to tangible assets (4)	9.08		8.92		8.80		8.64		8.51
Tangible common equity to tangible assets (4)	8.64		8.49		8.38		8.21		8.09
Net interest rate spread	2.11		2.23		2.25		2.37		2.52
Net interest margin	2.71		2.81		2.82		2.91		3.02
Operating expenses to average assets	1.75		1.74		1.76		1.88		1.87
Efficiency ratio (5)	62.86		59.56		60.38		63.37		62.28
Loan-to-deposit ratio	100.30		98.90		97.70		96.10		99.30


	For the Six Months Ended June 30,
	2024		2023
Performance Ratios (Annualized):
Return on average assets (3)	0.76	%	0.81	%
Return on average tangible assets (3) (4)	0.79		0.84
Return on average stockholders’ equity (3)	6.13		6.69
Return on average tangible stockholders’ equity (3) (4)	8.86		9.84
Return on average tangible common equity (3) (4)	9.30		10.37
Net interest rate spread	2.16		2.70
Net interest margin	2.76		3.17
Operating expenses to average assets	1.75		1.88
Efficiency ratio (5)	61.17		61.53

(continued)


	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	150,519		$	236,891		$	335,769		$	336,913		$	339,890
Nest Egg AUA/M	403,647			407,478			401,420			385,317			397,927
Total AUA/M	554,166			644,369			737,189			722,230			737,817
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 period	28.67			28.32			27.96			27.56			27.37
Tangible book value per common share at end of period (4)	18.93			18.63			18.35			17.93			17.72
Common shares outstanding at end of period	58,481,418			58,812,498			59,447,684			59,421,498			59,420,859
Preferred shares outstanding at end of period	57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:	39			39			39			38			38
Quarterly Average Balances
Total securities	$	2,058,711		$	2,098,421		$	1,863,136		$	1,873,450		$	1,931,032
Loans receivable, net	10,012,491			10,088,771			10,089,161			10,040,522			10,010,785
Total interest-earning assets	12,203,776			12,350,384			12,349,140			12,384,797			12,250,055
Total goodwill and core deposit intangible	514,535			515,356			516,289			517,282			518,265
Total assets	13,441,218			13,556,720			13,593,107			13,637,213			13,467,721
Time deposits	2,337,458			2,414,063			2,596,706			2,867,921			2,458,872
Total deposits (including non-interest-bearing deposits)	10,173,315			10,422,332			10,633,516			10,626,159			9,993,010
Total borrowings	1,325,372			1,214,219			1,016,722			1,095,173			1,603,126
Total interest-bearing liabilities	9,872,522			10,001,968			9,910,739			9,880,134			9,722,910
Non-interest bearing deposits	1,626,165			1,634,583			1,739,499			1,841,198			1,873,226
Stockholders' equity	1,674,453			1,673,040			1,650,699			1,642,899			1,626,693
Tangible stockholders’ equity (4)	1,159,918			1,157,684			1,134,410			1,125,617			1,108,428

Quarterly Yields and Costs
Total securities	4.22		%	4.27		%	3.81		%	3.82		%	3.47		%
Loans receivable, net	5.46			5.46			5.40			5.30			5.17
Total interest-earning assets	5.25			5.26			5.16			5.08			4.91
Time deposits	4.46			4.24			4.13			4.06			3.57
Total cost of deposits (including non-interest-bearing deposits)	2.37			2.31			2.22			1.99			1.52
Total borrowed funds	5.19			5.14			5.13			5.12			5.02
Total interest-bearing liabilities	3.14			3.03			2.91			2.71			2.39
Net interest spread	2.11			2.23			2.25			2.37			2.52
Net interest margin	2.71			2.81			2.82			2.91			3.02

(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 intangible assets related to goodwill and core deposit intangible. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, core deposit intangible 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.

OceanFirst Financial Corp.

OTHER ITEMS

(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION


	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Core Earnings:
Net income available to common stockholders (GAAP)	$	23,369		$	27,663		$	26,678		$	19,663		$	26,793
(Less) add non-recurring and non-core items:
Net (gain) loss on equity investments	(887)			(1,923)			(2,176)			(1,452)			559

Net gain on sale of trust business	—			(1,162)			—			—			—
FDIC special assessment	—			418			1,663			—			—










Income tax expense (benefit) on items	188			642			129			351			(162)
Core earnings (Non-GAAP)	$	22,670		$	25,638		$	26,294		$	18,562		$	27,190
Income tax expense	$	7,082		$	10,637		$	8,591		$	6,459		$	8,996
Provision for credit losses	3,114			591			3,153			10,283			1,229
Less: income tax expense (benefit) on non-core items	188			642			129			351			(162)
Core earnings PTPP (Non-GAAP)	$	32,678		$	36,224		$	37,909		$	34,953		$	37,577
Core earnings diluted earnings per share	$	0.39		$	0.44		$	0.45		$	0.32		$	0.46
Core earnings PTPP diluted earnings per share	$	0.56		$	0.62		$	0.65		$	0.59		$	0.64

Core Ratios (Annualized):
Return on average assets	0.68		%	0.76		%	0.77		%	0.54		%	0.81		%

Return on average tangible stockholders’ equity	7.86			8.91			9.20			6.54			9.84
Return on average tangible common equity	8.26			9.36			9.67			6.88			10.36
Efficiency ratio	63.47			61.05			60.02			64.29			61.94

(continued)


	For the Six Months Ended June 30,
	2024			2023
Core Earnings:
Net income available to common stockholders (GAAP)	$	51,032		$	53,672
Add (less) non-recurring and non-core items:
Net (gain) loss on equity investments(1)	(2,810)			2,752
Net loss on sale of investments(1)	—			5,305
Net gain on sale of trust business	(1,162)			—
FDIC special assessment	418			—
Merger related expenses	—			22





Branch consolidation expense, net	—			70
Income tax expense (benefit) on items	830			(1,959)
Core earnings (Non-GAAP)	$	48,308		$	59,862
Income tax expense	$	17,719		$	17,650
Provision for credit losses	3,705			4,242
Less: income tax expense (benefit) on non-core items	830			(1,959)
Core earnings PTPP (Non-GAAP)	$	68,902		$	83,713
Core diluted earnings per share	$	0.83		$	1.01
Core earnings PTPP diluted earnings per share	$	1.18		$	1.42

Core Ratios (Annualized):
Return on average assets	0.72		%	0.90		%

Return on average tangible stockholders’ equity	8.38			10.98
Return on average tangible common equity	8.81			11.56
Efficiency ratio	62.24			59.13
(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.

(continued)


	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Tangible Equity:
Total stockholders' equity	$	1,676,669		$	1,665,837		$	1,661,945		$	1,637,604		$	1,626,283
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	7,859			8,669			9,513			10,489			11,476
Tangible stockholders' equity	1,162,664			1,151,022			1,146,286			1,120,969			1,108,661
Less:
Preferred stock	55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,107,137		$	1,095,495		$	1,090,759		$	1,065,442		$	1,053,134

Tangible Assets:
Total assets	$	13,321,755		$	13,418,978		$	13,538,253		$	13,498,183		$	13,538,903
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	7,859			8,669			9,513			10,489			11,476
Tangible assets	$	12,807,750		$	12,904,163		$	13,022,594		$	12,981,548		$	13,021,281

Tangible stockholders' equity to tangible assets	9.08		%	8.92		%	8.80		%	8.64		%	8.51		%
Tangible common equity to tangible assets	8.64		%	8.49		%	8.38		%	8.21		%	8.09		%

. . . 1 The 2Q 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 July 18, 2024. Exhibit 99.2 OceanFirst Financial Corp. 2Q 2024 Earnings Release Supplement1 July 2024

. . .Legal Disclaimer 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, 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 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2023, 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 in the Company’s Earnings Release furnished as Exhibit 99.1 to Form 8-K as filed with the SEC on July 18, 2024. 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

. . .Q2-24 Financial Highlights 3 (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 Q2-24. (3) PCD loans are not included in these metrics. Refer to Asset Quality section in the Earnings Release for additional information. Financial Highlights $0.39 Core Diluted EPS (1) $82 million Net Interest Income 0.68% Core ROAA (1) 8.26% Core ROTCE (1) $0.56 Core PTPP Diluted EPS (1) 11.2% CET1 Ratio (2) ▪ Asset quality metrics remain strong. Criticized and classified loans, non-performing loans, and loans 30 to 89 days past due as a percent of total loans were 1.42%, 0.33%(3), and 0.10%, respectively. ▪ Increase in CET1 ratio by 20 bps to 11.2%. Capital is robust and above “well capitalized” levels. ▪ The Company continued to build capital while resuming share purchases, repurchasing 338,087 shares totaling $5.0 million in Q2-24. With year to date repurchases totaling 1,295,914 shares or $20.1 million.

. . . I N V E S T O R P R E S E N T A T I O N 4 Quarterly Earnings Update

. . .Loan Portfolio Trends 5 Moderated Loan Growth in the Portfolio ($’millions) ▪ Loan growth has moderated with the expectation of low to mid-single digit annualized growth by Q4-24. ▪ Loan yields plateaued for Q2-24 due to payoffs but are expected to rise as our existing portfolio reprices. 5,320 5,334 5,354 5,323 5,325 982 957 944 915 858 620 652 666 677 616 2,907 2,928 2,980 2,965 2,978 5.17% 255 Q2-23 5.30% 252 Q3-23 5.40% 251 Q4-23 5.46% 246 Q1-24 5.46% 242 Q2-24 10,084 10,124 10,195 10,126 10,019 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 $891 million (or 9% of total loans), is set to mature in 2024 and 2025 with weighted average rates of 5.80% and 5.59%, for each respective cohort. ▪ A repricing analysis(2) was performed on the vast majority of the CRE Investor and Construction portfolio. Results indicated the borrowers continue to service debt without unusual stress. ▪ The weighted average DSCR of loans after stressing the portfolio at an interest rate of 7% is 1.21x. 6 CRE Investor Owned Portfolio by Geography Notes: • All data represents CRE Investor balances, excluding purchase accounting marks and Construction as of June 30, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of June 30, 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) Repricing analysis as of Q1-23 included stressing portfolio with an increase to 7% interest rates while keeping underwritten rents constant. We actively track CRE loan underlying cash flows and noted no material change from Q1-23. As such, we have deemed the results from the repricing analysis to be relevant for the current quarter. (3) Rent-regulated multi-family is defined as buildings with >50% rent-regulated units. 32% 27% 25% 9% NY PA/DE NJ 3% MA 3% MD/DC Other The concentration in NYC rent- regulated3 multi-family loans is de-minimis, representing 0.31% of total assets. NYC Office Central Business District (CBD) is also de- minimis, representing 0.11% of total assets. CRE Investor Owned - Collateral Details $'millions CRE: Investor Owned % of Total WA LTV WA DSCR Office 1,097 23.5% 56.0 1.70 Retail 1,085 23.3% 54.4 1.93 Multi-Family 886 19.0% 57.4 1.66 Industrial / Warehouse 718 15.4% 51.4 2.02 Hospitality 164 3.5% 47.0 2.09 Other (1) 714 15.3% 46.7 1.79 CRE: Investor Owned 4,664 100.0% 53.4 1.82 Construction 661 CRE IO and Construction Total 5,325 CRE Investor Owned - Maturity Wall Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans 2024 277 5.80 63.36 1.70 2.77% 2025 612 5.59 53.13 1.74 6.11% Total 889 5.65 56.32 1.73 8.88%

. . . Strong asset quality trends driven by prudent loan growth and credit decisioning. Quarterly Credit Trends (1 of 2) 7 Non-Performing Loans and Assets ($’000)(1) Special Mention and Substandard Loans ($’000) Note #1: At June 30, 2024, of the Special Mention loans and Substandard loans represented above, 94.2% and 78.2% were current on payments, respectively. Note #2: Peer data is on a one quarter lag. Note: Excluding the single CRE credit relationship under contract for liquidation, NPL / total loans and NPA / total assets would be 0.23% and 0.18% on a pro forma basis, respectively. (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 1.42% as of Q2-24 compared to 2.06% as of Q4-19 (pre-pandemic). 0.20% 0.19% 0.14% Q2-23 0.27% 0.20% 8,783 Q3-23 0.26% 0.19% 8,783 Q4-23 0.31% 8,783 Q1-24 0.31% 7,183 Q2-24 0.23% 0.23% NPL to total loans NPA to total assets NPL - single CRE relationship Non-performing loans 19,587 22,70318,138 17,582 88,152 86,596 106,551 98,240 92,847 30,859 44,940 40,386 69,283 49,767 2.53% 1.18% Q2-23 2.70% 1.30% Q3-23 2.96% 1.44% Q4-23 2.99% 1.65% Q1-24 1.42% Q2-24 Peer Average Criticized Loans / Total Loans OCFC Criticized Loans / Total Loans Special Mention Substandard OCFC 10-Year (2014-2023) Average Criticized Loans / Total Loans = 2.40% 23,398 In Q3-23, the Bank charged-off $8 million on a single CRE credit relationship. In Q2-24, the Bank charged off an additional $1.6 million relating to the same relationship. The underlying property for this credit is contracted to liquidate in Q3-24; no further charge-offs are anticipated.

. . .Quarterly Credit Trends (2 of 2) 8 Loan Allowance for Credit Losses (ACL) Plus PCD & General Credit Marks / Total Loans NCOs / (Recoveries) and Provision for Credit Loss Expense ($’000) 0.10% 0.61% Q2-23 0.09% 0.63% Q3-23 0.07% 0.66% Q4-23 0.07% 0.66% Q1-24 Q2-24 0.71% 0.72% 0.73% 0.73% 0.75% 0.69% 0.06% PCD & General Credit Marks ACL 10,283 3,153 591 3,114 123 8,271 35 349 1,452 1,229 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Provision Expense Net Charge-offs (Recoveries) Charge-offs driven by a single commercial real estate relationship. Noted credit is being contracted for liquidation in Q3-24. NCOs to avg. loans totaled 0.08% in 2023 and 0.04% (YTD annualized) in 2024.

. . . COVID-19 Pandemic Track Record of Strong Credit Performance 9 ▪ From 2006 to 2023, inclusive of the Global Financial Crisis, Hurricane Sandy, and the COVID-19 Pandemic, OCFC’s CRE NCO to average CRE loans totaled 7 bps per year compared to 73 bps for all commercial banks between $10 - $50 billion in assets. ▪ From 2006 to 2023, peak CRE net charge-offs for OCFC totaled 47 bps in 2020, related to proactively de-risking our balance sheet. Peak CRE charge-offs for commercial banks between $10 - $50 billion in assets were 455 bps in 2010. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1-24 Q2-24 OCFC CRE NCO / Avg Assets OCFC NCO / Avg Assets Commercial Banks ($10-50 bn) CRE NCO / Avg Assets Commercial Banks ($10-50 bn) NCO / Avg Assets Global Financial Crisis Cumulative CRE charge-offs for OCFC between 2006 and Q2-24 were minimal, totaling $37 million. Hurricane Sandy Source: S&P Global. Note: Commercial bank reporting is on a one quarter lag.

. . .Deposit Trends 10 (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. ▪ Non-maturity deposits decreased by $290 million (or 4%) from the prior quarter. ▪ High yield savings declined by $96 million from the previous quarter as this portfolio was repriced. ▪ The increase in Q2-24 time deposits was primarily driven by retail CD growth to replace brokered CD run-off of $142MM. Shift in Deposit Mix to Drive Retention ($’millions) 29.00% 1.67% Q2-23 35.00% 2.02% Q3-23 38.00% 2.21% Q4-23 40.00% 2.31% Q1-24 42.00% 2.40% Q2-24 Deposit Beta (1) Cost of Deposits (Spot) 2,766 2,654 2,445 2,320 2,368 770 860 1,022 1,151 1,210 1,230 1,484 1,399 1,260 1,116 3,538 3,709 3,912 3,866 3,668 1,854 1,827 1,657 1,640 1,633 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 10,158 10,534 10,435 10,237 9,994 Non-Int. Bearing Int. Bearing Checking Savings Money Market Time Deposits Deposit Beta and Cost Trend 29% 35% 38% 40% 42% Cost of Deposits Type of Account Qtr. Avg. Jun 30 Spot Int. Bearing Checking 2.19% 2.16% Money Market 3.56% 3.61% Savings 0.90% 0.83% Time Deposits 4.46% 4.55% Total (incl. non-int bearing) 2.37% 2.40%

. . .Net Interest Income and Net Interest Margin Trends 11 (1) Core NIM excludes purchase accounting and prepayment fee income. Refer to the Earnings Release for additional information. Core NIM1 vs NIM NIM Bridge Q1-24 NIM -0.10 Change in balances, rate environment and funding mix/shift Q2-24 NIM 2.81% 2.71% 3.02% 2.97% Q2-23 2.91% 2.85% Q3-23 2.82% 2.77% Q4-23 2.81% 2.77% Q1-24 2.71% 2.67% Q2-24 NIM Core NIM Net Interest Income ($’000) 92,109 Q2-23 90,996 Q3-23 87,824 Q4-23 86,224 Q1-24 82,263 Q2-24 Net Interest Income Headwinds ▪ Competitive market environment as peers compete on rate for quality credit. ▪ Remaining disciplined on deposit pricing and managing funding costs.

. . . Core Efficiency Ratio1 Expense Discipline and Focused Investment 12 Core Non-Interest Expense (1) ($’000) 8,629 8,411 7,999 7,761 8,377 5,083 5,258 2,858 2,732 2,161 6,165 6,086 6,430 5,956 6,018 2,465 2,557 2,723 2,717 2,685 6,366 6,638 6,390 6,329 6,243 34,222 35,534 32,126 32,759 33,136 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 62,930 64,484 58,526 58,254 58,620 Compensation & employee benefits Occupancy & Equipment FDIC & regulatory assessments Data processing Professional fees Other Opex 61.94% Q2-23 64.29% Q3-23 60.02% Q4-23 61.05% Q1-24 63.47% Q2-24 1.87% 1.88% 1.71% 1.73% 1.75% 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 CDI, and other expenses. ▪ Q2-24 core non-interest expenses increased modestly (0.6%) from the prior quarter to $58.6MM. (2)

. . .Generating Consistent Returns 13 Book Value and Tangible Book Value per Common Share ($)1, 2 Core ROAA1, ROTE1, and ROTCE1 • Tangible book value per common share increased by $1.21 (or 7%) compared to the same quarter last year. • Capital remains strong and above “well capitalized” levels. • Repurchased 338,087 shares in the quarter totaled $5.0MM. • Share repurchase authorization totaling 1.6 million shares outstanding. Capital Management ($’millions) 17.72 17.93 18.35 18.63 18.93 27.37 27.56 27.96 28.32 28.67 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Book Value per Share Tangible Book Value per Common Share 9.84% 10.36% 0.81% Q2-23 6.54% 6.88% 0.54% Q3-23 9.20% 9.67% 0.77% Q4-23 8.91% 9.36% 0.76% Q1-24 7.86% 8.26% 0.68% Q2-24 Core ROTE Core ROTCE Core ROAA 12 12 12 12 12 15 5 8.51% 10.20% 0 Q2-23 8.64% 10.40% 0 Q3-23 8.80% 10.90% 0 Q4-23 8.92% 11.00% Q1-24 9.08% 11.20% Q2-24 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 Q2-24. 10.2 10.4% 10.9% 1. 11.2

. . .Business Model Strength Driving Significant Capital Return 14 $0.49 $0.55 2014 $0.94 $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 $1.01 $2.98 $5.55 $17.08 2022 $2.98 $6.35 $18.35 2023 $3.24 $6.55 $18.63 Q1-24 $12.33 $13.95 $15.62 $15.53 $12.33 $18.42 $20.55 $21.36 $23.60 $25.61 $27.68 $28.42 20212013 $12.91 Q2-24 $29.01 $3.33 $6.75 $18.93 $16.82 Cumulative Share Repurchase/Share Cumulative Dividends/Share TBVPCS The growth in TBV per common share (TBVPCS1) is attributed to: ▪ Minimally dilutive and strategic acquisitions in critical new markets ▪ Stable and competitive dividend ▪ 110th consecutive quarter ▪ Historical Payout Ratio of 30% to 40% ▪ Repurchased 338,087 shares in Q2-24 ▪ 1.6 million shares available to be repurchased ▪ Total repurchases of 1,295,914 shares in YTD Jun-24. (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 53.5% Total Capital Return per Share 135.3%

. . .Management 2024 Outlook 15 Loans Deposits Operating Expenses Net Interest Margin Capital • Loan growth has moderated but is expected to return to growth in H2-24. We expect low to mid-single digit annualized growth by the fourth quarter driven by C&I growth. • Maintain loan-to-deposit ratio ~100% for the entire year. • Continued mix shift may pressure funding costs. Low to mid-single digit annualized growth by Q4-24 Growth consistent with loan growth $58MM - $60MM per quarter Modest compression / stability remainder of the year Robust CET1 ratio (>10%) Guidance Key Assumptions / Commentary • Some level of quarterly volatility may occur. • We expect to maintain our common equity tier 1 ratio above 10%. • Further share repurchases dependent on other capital deployment opportunities. • Stabilization is subject to interest rate, loan growth, and funding trends.

. . . I N V E S T O R P R E S E N T A T I O N 16 Appendix

. . .Conservative Risk Profile of CRE IO Office & Construction 17 Portfolio Highlights • 98% 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 65.6 and weighted average DSCR of 1.62. • 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 $4.6 million with 47% of the portfolio under $1 million and 79% under $5 million. Notes: • All data represents CRE Investor balances, excluding purchase accounting marks and Construction as of June 30, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of June 30, 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. Central Business District (CBD): Office + Construction $'millions Balance % of Total WA LTV WA DSCR Credit Tenant 43 35.4% 60.7 1.79 General Office 40 32.4% 56.2 1.73 Life Sciences & Medical 39 32.2% 80.6 1.32 CBD - Office & Construction 123 100.0% 65.6 1.62 Single CRE relationship to be liquidated in Q3-24 7 Adjusted CBD: Office & Construction 116 CRE Investor Owned: Office + Construction $'millions Balance % of Office % of Total Loans WA LTV WA DSCR General Office 548 50.0% 5.5% 51.3 1.75 Life Sciences & Medical 287 26.2% 2.9% 57.3 1.74 Credit Tenant 262 23.9% 2.6% 64.4 1.54 Office 1,097 100.0% 10.9% 56.0 1.70 Construction 661 6.6% Office + Construction 1,757 17.5% CRE Investor Owned: Office + Construction CBD Bifurcation $'millions Balance % of Total % of CBD MA 43 2.4% 34.8% NJ 43 2.5% 35.4% PA 22 1.3% 18.2% NY 14 0.8% 11.6% Central Business District 123 7.0% 100.0% Non Central Business District 1,634 93.0% Office + Construction 1,757 100.0%

. . . Hurricane Sandy Global Financial Crisis COVID-19 Pandemic Northeast Outperforms Through Credit Cycles… 18 ▪ 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 15 bps during the Global Financial Crisis compared to 50 bps for other regions. In Q1-24, median NCOs / average assets totaled 1 bp for Northeastern banks versus 4 bps for other regions Source: SNL Financial. Multiple of Northeast GFC Peak NCOs 1.3x 1.7x 2.6x 6.0x3.4x 0.24% 0.32% 0.40% 0.63% 0.80% 1.43% Northeast Southwest Mid Atlantic Midwest Southeast West Q1’24 NCOs Southeast 0.08% West 0.05% Southwest 0.04% Mid Atlantic 0.04% Midwest 0.02% Northeast 0.01% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 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

. . . Hurricane Sandy Global Financial Crisis COVID-19 Pandemic …With a Similar Story in Commercial Real Estate Portfolios 19 ▪ 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 1.4x 1.7x 3.3x 6.2x4.2x 0.03% 0.04% 0.04% 0.09% 0.11% 0.16% Northeast Southwest Mid Atlantic Southeast Midwest West Multiple of Northeast 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 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

. . .Non-GAAP Reconciliations (1 of 2) Non-GAAP Reconciliation For the Three Months Ended $'000 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Core Earnings: Net income available to common stockholders (GAAP) 23,369 27,663 26,678 19,663 26,793 Add (less) non-recurring and non-core items: Net (gain) loss on equity investments (887) (1,923) (2,176) (1,452) 559 Net gain on sale of trust business - (1,162) - - - FDIC special assessment - 418 1,663 - - Income tax expense (benefit) on items 188 642 129 351 (162) Core earnings (Non-GAAP) 22,670 25,638 26,294 18,562 27,190 Income tax expense 7,082 10,637 8,591 6,459 8,996 Provision for credit losses 3,114 591 3,153 10,283 1,229 Less: income tax expense (benefit) on non-core items 188 642 129 351 (162) Core earnings PTPP (Non-GAAP) 32,678 36,224 37,909 34,953 37,577 Core earnings diluted earnings per share 0.39 0.44 0.45 0.32 0.46 Core earnings PTPP diluted earnings per share 0.56 0.62 0.65 0.59 0.64 Core Ratios (Annualized): Return on average assets 0.68 0.76 0.77 0.54 0.81 Return on average tangible stockholders' equity 7.86 8.91 9.20 6.54 9.84 Return on average tangible common equity 8.26 9.36 9.67 6.88 10.36 Efficiency ratio 63.47 61.05 60.02 64.29 61.94

. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Tangible Equity Total stockholders' equity 1,676,669 1,665,837 1,661,945 1,637,604 1,626,283 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 7,859 8,669 9,513 10,489 11,476 Tangible stockholders' equity 1,162,664 1,151,022 1,146,286 1,120,969 1,108,661 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,107,137 1,095,495 1,090,759 1,065,442 1,053,134 Tangible Assets Total Assets 13,321,755 13,418,978 13,538,253 13,498,183 13,538,903 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 7,859 8,669 9,513 10,489 11,476 Tangible assets 12,807,750 12,904,163 13,022,594 12,981,548 13,021,281

Document and Entity Information	Jul. 18, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 18, 2024
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
Series A Preferred Stock
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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