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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): October 17, 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 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 OPERATIONS AND FINANCIAL CONDITION
On October 17, 2024, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended September 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 October 17, 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 November 15, 2024 to stockholders of record on October 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 November 15, 2024 to the stockholders of record at the close of business on November 4, 2024.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
 
(d)EXHIBITS
Press Release datedOctober 17, 2024
Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after October 17, 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:
October 17, 2024
/s/ Patrick S. Barrett
Patrick S. Barrett
Executive Vice President and Chief Financial Officer




















































oceanfirstpressreleas19a.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 THIRD QUARTER
FINANCIAL RESULTS
    RED BANK, NEW JERSEY, October 17, 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 $24.1 million, or $0.42 per diluted share, for the three months ended September 30, 2024, an increase from $19.7 million, or $0.33 per diluted share, for the corresponding prior year period, and $23.4 million, or $0.40 per diluted share, for the prior linked quarter. For the nine months ended September 30, 2024, the Company reported net income available to common stockholders of $75.1 million, or $1.29 per diluted share, an increase from $73.3 million, or $1.24 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 Nine Months Ended,
Performance Ratios (Annualized):September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Return on average assets 0.71 %0.70 %0.57 %0.74 %0.73 %
Return on average stockholders’ equity5.68 5.61 4.75 5.98 6.03 
Return on average tangible stockholders’ equity (a)
8.16 8.10 6.93 8.62 8.85 
Return on average tangible common equity (a)
8.57 8.51 7.29 9.05 9.31 
Efficiency ratio65.77 62.86 63.37 62.71 62.15 
Net interest margin2.67 2.71 2.91 2.73 3.09 
(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 nine months ended September 30, 2024 were $23.2 million and $71.5 million, respectively, or $0.39 and $1.22 per diluted share, an increase from $18.6 million or $0.32 per diluted share and a decrease from $78.4 million or $1.33 per diluted share, for the corresponding prior year periods, and an increase from $22.7 million, or $0.39 per diluted share, for the prior linked quarter.
Core earnings PTPP1 for the three and nine months ended September 30, 2024 was $30.9 million and $99.8 million, respectively, or $0.53 and $1.71 per diluted share, as compared to $35.0 million and $118.7 million, or $0.59 and $2.01 per diluted share, for the corresponding prior year periods, and $32.7 million, or $0.56 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
Core Ratios1 (Annualized):
20242024202320242023
Return on average assets 0.69 %0.68 %0.54 %0.71 %0.78 %
Return on average tangible stockholders’ equity7.85 7.86 6.54 8.20 9.46 
Return on average tangible common equity8.24 8.26 6.88 8.61 9.96 
Efficiency ratio66.00 63.47 64.29 63.49 60.79 
Core diluted earnings per share$0.39 $0.39 $0.32 $1.22 $1.33 
Core PTPP diluted earnings per share 0.53 0.56 0.59 1.71 2.01 

Key developments for the recent quarter are described below:
•Net Interest Income Stabilization: Net interest income of $82.2 million for the quarter as compared to $82.3 million in the prior linked quarter.
•Deposits: Total deposits increased by $122.2 million to $10.1 billion from $10.0 billion and the loan-to-deposit ratio was 99% at September 30, 2024.
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 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.

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•Strategic Investments: The results include $3.3 million of expenses, of which $1.7 million related to merger and acquisition costs, for the talent acquisition of Garden State Home Loans, Inc. and acquisition of Spring Garden Capital Group, LLC.2 These are expected to improve future operating performance by expanding fee revenue and specialty finance offerings.
•Asset Quality: Asset quality metrics remain strong as non-performing loans and loans 30 to 89 days past due as a percentage of total loans receivable were 0.28% and 0.15%, respectively. Non-performing loans decreased by $5.3 million, to $28.1 million, and the Company recorded net loan recoveries of $88,000 for the quarter.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which builds on the existing strength of our balance sheet, including robust capital and asset quality, coupled with stabilization of net interest income and margin. The quarter includes additional investments in mortgage banking activities, which will expand our digital channels and fee revenue and, in October, we completed an acquisition of a specialty finance company expanding our product offerings.” Mr. Maher added, “Additionally, the Company hosted its third annual CommUNITYFirst Day. Thank you to our incredible employees and community partners for a successful event involving over 700 employees and nearly 3,000 hours across our communities.”
The Company’s Board of Directors declared its 111th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on November 15, 2024 to common stockholders of record on November 4, 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 November 15, 2024 to preferred stockholders of record on October 31, 2024.
2 The talent acquisition of Garden State Home Loans, Inc. was effective August 3, 2024. Additionally, the acquisition of Spring Garden Capital Group, LLC was effective October 1, 2024.

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Results of Operations
The current quarter was impacted by a continued mix-shift and repricing of funding costs. Further, the results were impacted by the following non-recurring events: $1.7 million of merger related expenses, a $1.4 million gain on sale of a portion of the Company’s trust business, a $855,000 gain on sale of assets held for sale, and the resolution, via sale of collateral, of a single commercial real estate relationship of $7.2 million that was moved to non-accrual and partially charged-off in prior periods.
Net Interest Income and Margin
Three months ended September 30, 2024 vs. September 30, 2023
Net interest income decreased to $82.2 million, from $91.0 million, primarily reflecting the net impact of the higher interest rate environment.
Net interest margin decreased to 2.67%, from 2.91%, which included the impact of purchase accounting accretion of 0.02% and 0.06%, 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 $152.1 million due to balance sheet contraction while the average yield for interest-earning assets increased to 5.26%, from 5.08%.
The cost of average interest-bearing liabilities increased to 3.20%, from 2.71%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.44%, from 1.99%. Average interest-bearing liabilities decreased by $5.8 million, primarily due to a decrease in total deposits, largely offset by an increase in total borrowings.
Nine months ended September 30, 2024 vs. September 30, 2023
Net interest income decreased to $250.7 million, from $281.9 million, reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.73%, from 3.09%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05% for the respective periods.
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Average interest-earning assets increased by $45.8 million, primarily driven by an increase in securities growth of $153.9 million, which was funded through the decrease of $135.4 million of interest-earning deposits and short-term investments. The average yield increased to 5.25%, from 4.90%.
The total cost of average interest-bearing liabilities increased to 3.12%, from 2.29%. The total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 1.48%. Average interest-bearing liabilities increased by $258.0 million, primarily due to an increase in total deposits, partly offset by a decrease in total borrowings.
Three months ended September 30, 2024 vs. June 30, 2024
Net interest income decreased by $44,000, as the increase in cost of deposits slightly outpaced the decrease in Federal Home Loan Bank (“FHLB”) advance costs and the yield of average interest earning assets. Net interest margin decreased to 2.67%, from 2.71%, which included the impact of purchase accounting accretion of 0.02% and 0.04% for the respective periods.
Average interest-earning assets increased by $28.9 million, primarily due to an increase in interest-earning deposits and short-term investments, partly offset by a decrease in loans. The yield on average interest-earning assets increased to 5.26%, from 5.25%.
The total cost of average interest-bearing liabilities increased to 3.20%, from 3.14%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.44%, from 2.37%. Average interest-bearing liabilities increased by $1.8 million, primarily due to an increase in FHLB advances, partly offset by a decrease in deposits and other borrowings.
Provision for Credit Losses
    Provision for credit losses for the three and nine months ended September 30, 2024 was $517,000 and $4.2 million, respectively, as compared to $10.3 million and $14.5 million for the corresponding prior year periods, and $3.1 million in the prior linked quarter. The lower provision for
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the current quarter was a result of flat loan growth, net loan recoveries, and the net effect of shifts in the Company’s loan portfolio and external macro economic forecasts.
Net loan recoveries were $88,000 and net loan charge-offs were $1.7 million for the three and nine months ended September 30, 2024, respectively, as compared to net loan charge-offs of $8.3 million for both the three and nine months ended September 30, 2023. Net loan charge-offs were $1.5 million in the prior linked quarter. The prior year periods and prior linked quarter included partial charge-offs of $8.4 million and $1.6 million, respectively, for the single commercial real estate relationship disclosed previously. Refer to “Results of Operations” section for further discussion.
Non-interest Income
Three months ended September 30, 2024 vs. September 30, 2023    
Other income increased to $14.7 million, as compared to $10.8 million. Other income was favorably impacted by non-core operations related to net gains on equity investments of $1.4 million and $1.5 million, for the respective quarters, and a $1.4 million gain on sale of a portion of the Company’s trust business in the current quarter.
Excluding non-core operations, other income increased by $2.5 million, primarily driven by increases in fees and service charges of $918,000 related to treasury management fees, a non-recurring gain on sale of assets held for sale of $855,000, and net gain on sale of loans of $439,000.
Nine months ended September 30, 2024 vs. September 30, 2023
Other income increased to $38.0 million, as compared to $21.8 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 $6.6 million, primarily related to losses on sale of investments.
Excluding non-core operations, other income increased by $2.8 million, primarily driven by increases in the cash surrender value of bank owned life insurance of $1.5 million, which included one-
6

time death benefits in the current period, net gain on sale of loans of $1.2 million, and 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 $590,000, related to the sale of a portion of the Company’s trust business.
Three months ended September 30, 2024 vs. June 30, 2024
Other income in the prior linked quarter was $11.0 million and was favorably impacted by non-core operations of $887,000 related to net gains on equity investments. Excluding non-core operations, other income increased by $1.7 million, primarily due increases in fees and service charges of $1.1 million related to treasury management fees, and the gain on sale of assets held for sale of $855,000, as noted above.
Non-interest Expense
Three months ended September 30, 2024 vs. September 30, 2023
Operating expenses decreased to $63.7 million, as compared to $64.5 million. Operating expenses were adversely impacted by non-core operations related to merger related expenses of $1.7 million in the current quarter.
Excluding non-core operations, operating expenses decreased by $2.4 million. The primary driver was a decrease in professional fees of $3.3 million as the Company realized benefits from the performance improvement initiatives and investments made in the prior periods. This was partially offset by an increase in other operating expense of $1.1 million, which was partly due to additional loan servicing expenses.
Nine months ended September 30, 2024 vs. September 30, 2023
Operating expenses decreased to $181.0 million, as compared to $188.7 million. Operating expenses were adversely impacted by $2.1 million in the current year of non-core operations related to merger related expenses and a FDIC special assessment, and by $92,000 in the prior year for merger related and net branch consolidation expenses.
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Excluding non-core operations, operating expenses decreased by $9.7 million. The primary drivers were decreases in professional fees of $8.6 million and compensation and employee benefits expenses of $1.9 million, which were due to the same initiatives discussed in the three-month periods above. This was partially offset by an increase in other operating expenses of $1.3 million, which was partly due to additional loan servicing expenses.
Three months ended September 30, 2024 vs. June 30, 2024
Excluding non-core operations, operating expenses increased by $3.4 million. The primary drivers were increases in compensation and benefits of $2.7 million, related to additional personnel in connection with the expansion of fee revenue noted above, and other operating expense of $854,000, which was partly due to additional loan servicing expenses.
Income Tax Expense
The provision for income taxes was $7.5 million and $25.2 million for the three and nine months ended September 30, 2024, respectively, as compared to $6.5 million and $24.1 million for the same prior year periods, and $7.1 million for the prior linked quarter. The effective tax rate was 22.9% and 24.4% for the three and nine months ended September 30, 2024, respectively, as compared to 23.9% and 24.0% for the same prior year periods, and 22.5% for the prior linked quarter. The Company’s current quarter effective tax rate was positively impacted by geographic mix as compared to the same prior year period and the nine months ended September 30, 2024 was adversely impacted by the non-recurring write-off of a deferred tax asset of $1.2 million net of other state effects. The prior linked quarter’s effective tax rate was positively impacted by the net effect of state law changes.
Financial Condition
September 30, 2024 vs. December 31, 2023
Total assets decreased by $49.8 million to $13.49 billion, from $13.54 billion, primarily due to decreases in loans, partly offset by net increase in total debt securities. Total loans decreased by $172.4 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial
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portfolio of $188.4 million driven by loan payoffs. The loan pipeline increased by $168.6 million to $351.6 million, from $183.0 million. Held-to-maturity debt securities decreased by $84.6 million to $1.08 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale increased $157.9 million to $911.8 million, from $753.9 million, primarily due to new purchases. Other assets decreased by $20.3 million to $159.3 million, from $179.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.
Total liabilities decreased by $82.3 million to $11.79 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $318.8 million to $10.12 billion, from $10.43 billion, primarily due to decreases in high-yield savings accounts of $326.9 million and time deposits of $224.6 million, offset by increases in money market accounts of $266.8 million. Time deposits decreased to $2.22 billion, from $2.45 billion, representing 22.0% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits, which decreased by $430.4 million, offset by increases in retail time deposits of $221.4 million. The loan-to-deposit ratio was 99.1%, as compared to 97.7%. FHLB advances increased by $43.2 million to $891.9 million, from $848.6 million and other borrowings increased by $223.5 million to $419.9 million, from $196.5 million, as a result of lower cost funding availability.
Other liabilities decreased by $43.1 million to $257.6 million, from $300.7 million, primarily due to a decrease 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 September 30, 2024, including the Company’s estimated common equity tier one capital ratio which increased to 11.3%, up approximately 40 basis points from December 31, 2023.
    Total stockholders’ equity increased to $1.69 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. For the nine months ended September 30, 2024, the Company repurchased 1,383,238 shares totaling
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$21.5 million representing a weighted average cost of $15.38. The Company had 1,551,200 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $8.7 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
The Company completed its annual goodwill impairment test as of August 31, 2024. Based on a quantitative assessment, the Company concluded that goodwill was not impaired. However, the Company continues to monitor its goodwill as further and continued negative industry and economic trends and decline in the Company’s stock price may result in a re-evaluation before the next required annual test.
The Company’s tangible common equity3 increased by $35.0 million to $1.13 billion. The Company’s stockholders’ equity to assets ratio was 12.56% at September 30, 2024, and tangible common equity to tangible assets ratio increased by 30 basis points during the quarter to 8.68%, primarily due to the drivers described above.
Book value per common share increased to $29.02, as compared to $27.96. Tangible book value per common share3 increased to $19.28, as compared to $18.35.

Asset Quality
September 30, 2024 vs. December 31, 2023
Overall asset quality metrics remained stable. The Company’s non-performing loans decreased to $28.1 million from $29.5 million and represented 0.28% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 245.45%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $15.5 million, from $19.2 million. Criticized and classified assets increased to $189.1 million, from $146.9 million. The
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.
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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 decreased to $25.3 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 273.51%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $14.2 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $74.8 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.
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Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, October 18, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 257920. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 120573, from one hour after the end of the call until November 15, 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 $13.5 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.

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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)

September 30,June 30,December 31,September 30,
2024202420232023
(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and due from banks$214,171 $181,198 $153,718 $408,882 
Debt securities available-for-sale, at estimated fair value911,753 721,484 753,892 453,208 
Debt securities held-to-maturity, net of allowance for securities credit losses of $902 at September 30, 2024, $958 at June 30, 2024, $1,133 at December 31, 2023 and $932 at September 30, 2023 (estimated fair value of $1,007,781 at September 30, 2024, $1,003,850 at June 30, 2024, $1,068,438 at December 31, 2023 and $1,047,342 at September 30, 2023)
1,075,131 1,105,843 1,159,735 1,189,339 
Equity investments95,688 104,132 100,163 97,908 
Restricted equity investments, at cost98,545 92,679 93,766 82,484 
Loans receivable, net of allowance for loan credit losses of $69,066 at September 30, 2024, $68,839 at June 30, 2024, $67,137 at December 31, 2023 and $63,877 at September 30, 2023
9,963,598 9,961,117 10,136,721 10,068,156 
Loans held-for-sale23,036 2,062 5,166 — 
Interest and dividends receivable48,821 50,976 51,874 50,030 
Premises and equipment, net116,087 117,392 121,372 122,646 
Bank owned life insurance269,138 267,867 266,498 265,071 
Assets held for sale— 28 28 3,004 
Goodwill506,146 506,146 506,146 506,146 
Core deposit intangible7,056 7,859 9,513 10,489 
Other assets159,313 202,972 179,661 240,820 
Total assets$13,488,483 $13,321,755 $13,538,253 $13,498,183 
Liabilities and Stockholders’ Equity
Deposits$10,116,167 $9,994,017 $10,434,949 $10,533,929 
Federal Home Loan Bank advances891,860 789,337 848,636 606,056 
Securities sold under agreements to repurchase with customers81,163 80,000 73,148 82,981 
Other borrowings419,927 424,490 196,456 196,183 
Advances by borrowers for taxes and insurance27,282 25,168 22,407 29,696 
Other liabilities257,576 332,074 300,712 411,734 
Total liabilities11,793,975 11,645,086 11,876,308 11,860,579 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,693,654 1,675,885 1,661,163 1,636,891 
Non-controlling interest854 784 782 713 
Total stockholders’ equity1,694,508 1,676,669 1,661,945 1,637,604 
Total liabilities and stockholders’ equity$13,488,483 $13,321,755 $13,538,253 $13,498,183 













13

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
20242024202320242023
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$136,635 $136,049 $133,931 $409,805 $384,755 
Debt securities19,449 19,039 15,223 58,349 43,829 
Equity investments and other5,441 4,338 9,256 14,399 18,956 
Total interest income161,525 159,426 158,410 482,553 447,540 
Interest expense:
Deposits62,318 60,071 53,287 182,244 112,551 
Borrowed funds16,988 17,092 14,127 49,603 53,082 
Total interest expense79,306 77,163 67,414 231,847 165,633 
Net interest income82,219 82,263 90,996 250,706 281,907 
Provision for credit losses517 3,114 10,283 4,222 14,525 
Net interest income after provision for credit losses81,702 79,149 80,713 246,484 267,382 
Other income:
Bankcard services revenue1,615 1,571 1,507 4,602 4,381 
Trust and asset management revenue384 419 662 1,329 1,919 
Fees and service charges6,096 5,015 5,178 15,584 15,939 
Net gain on sales of loans505 420 66 1,282 119 
Net gain (loss) on equity investments1,420 887 1,452 4,230 (5,908)
Income from bank owned life insurance1,779 1,726 1,390 5,367 3,853 
Commercial loan swap income414 241 11 793 712 
Other2,471 706 496 4,768 748 
Total other income14,684 10,985 10,762 37,955 21,763 
Operating expenses:
Compensation and employee benefits35,844 33,136 35,534 101,739 103,676 
Occupancy5,157 5,175 5,466 15,531 15,970 
Equipment1,026 1,068 1,172 3,224 3,478 
Marketing1,385 1,175 1,183 3,550 3,126 
Federal deposit insurance and regulatory assessments2,618 2,685 2,557 8,438 6,771 
Data processing5,940 6,018 6,086 17,914 18,405 
Check card processing1,153 1,075 1,154 3,278 3,649 
Professional fees1,970 2,161 5,258 6,863 15,439 
Amortization of core deposit intangible803 810 987 2,457 3,008 
Branch consolidation expense, net— — — — 70 
Merger related expenses1,669 — — 1,669 22 
Other operating expense6,171 5,317 5,087 16,365 15,109 
Total operating expenses63,736 58,620 64,484 181,028 188,723 
Income before provision for income taxes32,650 31,514 26,991 103,411 100,422 
Provision for income taxes7,464 7,082 6,459 25,183 24,109 
Net income25,186 24,432 20,532 78,228 76,313 
Net income (loss) attributable to non-controlling interest70 59 (135)72 (34)
Net income attributable to OceanFirst Financial Corp.25,116 24,373 20,667 78,156 76,347 
Dividends on preferred shares1,004 1,004 1,004 3,012 3,012 
Net income available to common stockholders$24,112 $23,369 $19,663 $75,144 $73,335 
Basic earnings per share$0.42 $0.40 $0.33 $1.29 $1.24 
Diluted earnings per share$0.42 $0.40 $0.33 $1.29 $1.24 
Average basic shares outstanding58,065 58,356 59,104 58,405 59,037 
Average diluted shares outstanding58,068 58,357 59,111 58,407 59,068 

14

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Commercial:
Commercial real estate - investor$5,273,159 $5,324,994 $5,322,755 $5,353,974 $5,334,279 
Commercial real estate - owner-occupied841,930 857,710 914,582 943,891 957,216 
Commercial and industrial660,879 616,400 677,176 666,532 652,119 
Total commercial6,775,968 6,799,104 6,914,513 6,964,397 6,943,614 
Consumer:
Residential real estate3,003,213 2,977,698 2,965,276 2,979,534 2,928,259 
Home equity loans and lines and other consumer ("other consumer")242,975 242,526 245,859 250,664 251,698 
Total consumer3,246,188 3,220,224 3,211,135 3,230,198 3,179,957 
Total loans10,022,156 10,019,328 10,125,648 10,194,595 10,123,571 
Deferred origination costs (fees), net10,508 10,628 9,734 9,263 8,462 
Allowance for loan credit losses(69,066)(68,839)(67,173)(67,137)(63,877)
Loans receivable, net$9,963,598 $9,961,117 $10,068,209 $10,136,721 $10,068,156 
Mortgage loans serviced for others$142,394 $104,136 $89,555 $68,217 $52,796 
At September 30, 2024 Average Yield
Loan pipeline (1):
Commercial8.28 %$199,818 $166,206 $66,167 $124,707 $50,756 
Residential real estate6.09 137,978 80,330 57,340 49,499 66,682 
Other consumer8.94 13,788 12,586 13,030 8,819 13,795 
Total7.45 %$351,584 $259,122 $136,537 $183,025 $131,233 
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Average Yield
Loan originations:
Commercial7.99 %$245,886 $56,053 $123,010 $94,294 $90,263 
Residential real estate6.51 169,273 121,388 78,270 113,227 92,299 
Other consumer8.98 15,760 16,970 11,405 16,971 17,019 
Total7.44 %$430,919 $194,411 $212,685 $224,492 $199,581 
Loans sold$65,296 

$45,045 $29,965 $20,138 $15,404 
(1)Loan pipeline includes loans approved but not funded.

DEPOSITSAt
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Type of Account
Non-interest-bearing$1,638,447 $1,632,521 $1,639,828 $1,657,119 $1,827,381 
Interest-bearing checking3,896,348 3,667,837 3,865,699 3,911,766 3,708,874 
Money market1,288,555 1,210,312 1,150,979 1,021,805 860,025 
Savings1,071,946 1,115,688 1,260,309 1,398,837 1,484,000 
Time deposits (1)
2,220,871 2,367,659 2,320,036 2,445,422 2,653,649 
  Total deposits$10,116,167 $9,994,017 $10,236,851 $10,434,949 $10,533,929 
(1)Includes brokered time deposits of $201.0 million, $401.6 million, $543.4 million, $631.5 million, and $995.5 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY (1)
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Non-performing loans:
Commercial real estate - investor$12,478 $19,761 $21,507 $20,820 $20,723 
Commercial real estate - owner-occupied4,368 4,081 3,355 351 240 
Commercial and industrial122 434 567 304 1,120 
Residential real estate9,108 7,213 7,181 5,542 5,624 
Other consumer2,063 1,933 2,401 2,531 2,391 
Total non-performing loans$28,139 $33,422 $35,011 $29,548 $30,098 
Delinquent loans 30 to 89 days$15,458 $9,655 $17,534 $19,202 $20,591 
Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)$8,409 $8,677 $9,075 $6,420 $6,679 
Performing26,655 27,184 15,619 15,361 7,645 
Total modifications to borrowers experiencing financial difficulty (2)
$35,064 $35,861 $24,694 $21,781 $14,324 
Allowance for loan credit losses$69,066 $68,839 $67,173 $67,137 $63,877 
Allowance for loan credit losses as a percent of total loans receivable (3)
0.69 %0.69 %0.66 %0.66 %0.63 %
Allowance for loan credit losses as a percent of total non-performing loans (3)
245.45 205.97 191.86 227.21 212.23 
Non-performing loans as a percent of total loans receivable0.28 0.33 0.35 0.29 0.30 
Non-performing assets as a percent of total assets0.21 0.25 0.26 0.22 0.22 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$15,323 $16,058 $16,700 $16,122 $18,640 
Non-performing PCD loans2,887 2,841 3,525 3,183 3,177 
Delinquent PCD and non-performing loans 30 to 89 days1,279 1,188 2,088 1,516 13,007 
PCD modifications to borrowers experiencing financial difficulty (2)
760 759 764 771 750 
Asset quality, excluding PCD loans (4)
Non-performing loans25,252 30,581 31,486 26,365 26,921 
Delinquent loans 30 to 89 days (excludes non-performing loans)
14,179 8,467 15,446 17,686 7,584 
Modifications to borrowers experiencing financial difficulty (2)
34,304 35,102 23,930 21,010 13,574 
Allowance for loan credit losses as a percent of total non-performing loans (3)
273.51 %225.10 %213.34 %254.64 %237.28 %
Non-performing loans as a percent of total loans receivable
0.25 0.31 0.31 0.26 0.27 
Non-performing assets as a percent of total assets0.19 0.23 0.23 0.19 0.20 
(1)The quarters ended September 30, 2023 and 2024 include the addition and subsequent 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 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 $5.7 million, $6.1 million, $7.0 million, $7.5 million and $8.8 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
(4)All balances and ratios exclude PCD loans.










16

(continued)

NET LOAN RECOVERIES (CHARGE-OFFS)For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Net loan recoveries (charge-offs):
Loan charge-offs (1)
$(124)$(1,600)$(441)$(98)$(8,379)
Recoveries on loans212 148 92 63 108 
Net loan recoveries (charge-offs)$88 

$(1,452)$(349)$(35)$(8,271)
Net loan recoveries (charge-offs) to average total loans (annualized)NM*0.06 %0.01 %— %0.33 %
Net loan recoveries (charge-offs) detail:
Commercial$129 $(1,576)$(35)$9 $(8,332)
Residential real estate(6)87 66 9 17 
Other consumer(35)37 (380)(53)44 
Net loan recoveries (charge-offs)$88 $(1,452)$(349)$(35)$(8,271)
(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.
* Not meaningful as amounts are net loan recoveries.

17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
September 30, 2024June 30, 2024September 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$210,245 $2,971 5.62 %$132,574 $1,770 5.37 %$470,825 $6,440 5.43 %
Securities (2)
2,063,633 21,919 4.23 2,058,711 21,607 4.22 1,873,450 18,039 3.82 
Loans receivable, net (3)
Commercial6,782,777 102,881 6.03 6,845,988 102,620 6.03 6,923,743 103,069 5.91 
Residential real estate2,992,138 29,677 3.97 2,978,749 29,072 3.90 2,918,612 26,765 3.67 
Other consumer242,942 4,077 6.68 246,024 4,357 7.12 252,126 4,097 6.45 
Allowance for loan credit losses, net of deferred loan costs and fees(59,063)— — (58,270)— — (53,959)— — 
Loans receivable, net9,958,794 136,635 5.46 10,012,491 136,049 5.46 10,040,522 133,931 5.30 
Total interest-earning assets12,232,672 161,525 5.26 12,203,776 159,426 5.25 12,384,797 158,410 5.08 
Non-interest-earning assets1,206,024 1,237,442 1,252,416 
Total assets$13,438,696 $13,441,218 $13,637,213 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,856,281 21,731 2.24 %$3,862,060 21,043 2.19 %$3,692,500 14,938 1.61 %
Money market1,256,536 11,454 3.63 1,183,429 10,482 3.56 832,729 5,698 2.71 
Savings1,088,926 2,218 0.81 1,164,203 2,604 0.90 1,391,811 3,311 0.94 
Time deposits2,339,370 26,915 4.58 2,337,458 25,942 4.46 2,867,921 29,340 4.06 
Total8,541,113 62,318 2.90 8,547,150 60,071 2.83 8,784,961 53,287 2.41 
FHLB Advances757,535 9,140 4.80 711,801 8,746 4.94 701,343 8,707 4.93 
Securities sold under agreements to repurchase75,871 491 2.57 72,305 478 2.66 76,620 261 1.35 
Other borrowings499,839 7,357 5.86 541,266 7,868 5.85 317,210 5,159 6.45 
Total borrowings1,333,245 16,988 5.07 1,325,372 17,092 5.19 1,095,173 14,127 5.12 
Total interest-bearing liabilities9,874,358 79,306 3.20 9,872,522 77,163 3.14 9,880,134 67,414 2.71 
Non-interest-bearing deposits1,634,743 1,626,165 1,841,198 
Non-interest-bearing liabilities240,560 268,078 272,982 
Total liabilities11,749,661 11,766,765 11,994,314 
Stockholders’ equity1,689,035 1,674,453 1,642,899 
Total liabilities and equity$13,438,696 $13,441,218 $13,637,213 
Net interest income$82,219 $82,263 $90,996 
Net interest rate spread (4)
2.06 %2.11 %2.37 %
Net interest margin (5)
2.67 %2.71 %2.91 %
Total cost of deposits (including non-interest-bearing deposits)2.44 %2.37 %1.99 %

18

(continued)
For the Nine Months Ended September 30,
 20242023
(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$168,822 $6,966 5.51 %$304,184 $11,661 5.13 %
Securities (2)
2,073,552 65,782 4.24 1,919,660 51,124 3.56 
Loans receivable, net (3)
Commercial6,851,021 309,922 6.04 6,892,456 295,199 5.73 
Residential real estate2,981,822 87,345 3.91 2,895,601 77,862 3.59 
Other consumer245,777 12,538 6.81 257,063 11,694 6.08 
Allowance for loan credit losses, net of deferred loan costs and fees(58,825)— — (52,626)— — 
Loans receivable, net10,019,795 409,805 5.46 9,992,494 384,755 5.15 
Total interest-earning assets12,262,169 482,553 5.25 12,216,338 447,540 4.90 
Non-interest-earning assets1,216,562 1,234,942 
Total assets$13,478,731 $13,451,280 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,881,344 63,570 2.19 %$3,757,417 33,171 1.18 %
Money market1,177,612 31,107 3.53 744,689 11,136 2.00 
Savings1,202,533 9,284 1.03 1,336,497 4,034 0.40 
Time deposits2,363,542 78,283 4.42 2,388,299 64,210 3.59 
Total8,625,031 182,244 2.82 8,226,902 112,551 1.83 
FHLB Advances704,911 25,657 4.86 1,055,106 38,530 4.88 
Securities sold under agreements to repurchase72,239 1,380 2.55 73,441 544 0.99 
Other borrowings513,951 22,566 5.86 302,649 14,008 6.19 
Total borrowings1,291,101 49,603 5.13 1,431,196 53,082 4.96 
Total interest-bearing liabilities9,916,132 231,847 3.12 9,658,098 165,633 2.29 
Non-interest-bearing deposits1,631,841 1,913,624 
Non-interest-bearing liabilities251,878 253,014 
Total liabilities11,799,851 11,824,736 
Stockholders’ equity1,678,880 1,626,544 
Total liabilities and equity$13,478,731 $13,451,280 
Net interest income$250,706 $281,907 
Net interest rate spread (4)
2.13 %2.61 %
Net interest margin (5)
2.73 %3.09 %
Total cost of deposits (including non-interest-bearing deposits)2.37 %1.48 %
(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)
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Selected Financial Condition Data:
Total assets$13,488,483 $13,321,755 $13,418,978 $13,538,253 $13,498,183 
Debt securities available-for-sale, at estimated fair value
911,753 721,484 744,944 753,892 453,208 
Debt securities held-to-maturity, net of allowance for securities credit losses1,075,131 1,105,843 1,128,666 1,159,735 1,189,339 
Equity investments95,688 104,132 103,201 100,163 97,908 
Restricted equity investments, at cost98,545 92,679 85,689 93,766 82,484 
Loans receivable, net of allowance for loan credit losses9,963,598 9,961,117 10,068,209 10,136,721 10,068,156 
Deposits10,116,167 9,994,017 10,236,851 10,434,949 10,533,929 
Federal Home Loan Bank advances891,860 789,337 658,436 848,636 606,056 
Securities sold under agreements to repurchase and other borrowings501,090 504,490 492,520 269,604 279,164 
Total stockholders’ equity1,694,508 1,676,669 1,665,837 1,661,945 1,637,604 

For the Three Months Ended,
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Selected Operating Data:
Interest income$161,525 $159,426 $161,602 $160,434 $158,410 
Interest expense79,306 77,163 75,378 72,610 67,414 
Net interest income82,219 82,263 86,224 87,824 90,996 
Provision for credit losses517 3,114 591 3,153 10,283 
Net interest income after provision for credit losses81,702 79,149 85,633 84,671 80,713 
Other income (excluding activity related to debt and equity investments and sale of trust business)11,826 10,098 9,201 9,685 9,310 
Net gain on equity investments1,420 887 1,923 2,176 1,452 
Net gain on sale of trust business1,438 — 1,162 — — 
Operating expenses (excluding FDIC special assessment and merger related expenses)62,067 58,620 58,254 58,526 64,484 
FDIC special assessment— — 418 1,663 — 
Merger related expenses1,669 — — — — 
Income before provision for income taxes32,650 31,514 39,247 36,343 26,991 
Provision for income taxes7,464 7,082 10,637 8,591 6,459 
Net income25,186 24,432 28,610 27,752 20,532 
Net income (loss) attributable to non-controlling interest70 59 (57)70 (135)
Net income attributable to OceanFirst Financial Corp.$25,116 $24,373 $28,667 $27,682 $20,667 
Net income available to common stockholders$24,112 $23,369 $27,663 $26,678 $19,663 
Diluted earnings per share$0.42 $0.40 $0.47 $0.46 $0.33 
Net accretion/amortization of purchase accounting adjustments included in net interest income$741 $1,086 $921 $1,604 $1,745 
20

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
0.71 %0.70 %0.82 %0.78 %0.57 %
Return on average tangible assets (3) (4)
0.74 0.73 0.85 0.81 0.59 
Return on average stockholders’ equity (3)
5.68 5.61 6.65 6.41 4.75 
Return on average tangible stockholders’ equity (3) (4)
8.16 8.10 9.61 9.33 6.93 
Return on average tangible common equity (3) (4)
8.57 8.51 10.09 9.81 7.29 
Stockholders’ equity to total assets12.56 12.59 12.41 12.28 12.13 
Tangible stockholders’ equity to tangible assets (4)
9.10 9.08 8.92 8.80 8.64 
Tangible common equity to tangible assets (4)
8.68 8.64 8.49 8.38 8.21 
Net interest rate spread2.06 2.11 2.23 2.25 2.37 
Net interest margin2.67 2.71 2.81 2.82 2.91 
Operating expenses to average assets 1.89 1.75 1.74 1.76 1.88 
Efficiency ratio (5)
65.77 62.86 59.56 60.38 63.37 
Loan-to-deposit ratio99.10 100.30 98.90 97.70 96.10 


For the Nine Months Ended September 30,
20242023
Performance Ratios (Annualized):
Return on average assets (3)
0.74 %0.73 %
Return on average tangible assets (3) (4)
0.77 0.76 
Return on average stockholders’ equity (3)
5.98 6.03 
Return on average tangible stockholders’ equity (3) (4)
8.62 8.85 
Return on average tangible common equity (3) (4)
9.05 9.31 
Net interest rate spread2.13 2.61 
Net interest margin2.73 3.09 
Operating expenses to average assets1.79 1.88 
Efficiency ratio (5)
62.71 62.15 


21

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$152,797 $150,519 $236,891 $335,769 $336,913 
Nest Egg AUA/M430,413 403,647 407,478 401,420 385,317 
Total AUA/M583,210 554,166 644,369 737,189 722,230 
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 period29.02 28.67 28.32 27.96 27.56 
Tangible book value per common share at end of period (4)
19.28 18.93 18.63 18.35 17.93 
Common shares outstanding at end of period58,397,09458,481,41858,812,49859,447,684 59,421,498
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 38 
Quarterly Average Balances
Total securities$2,063,633 $2,058,711 $2,098,421 $1,863,136 $1,873,450 
Loans receivable, net9,958,794 10,012,491 10,088,771 10,089,161 10,040,522 
Total interest-earning assets12,232,672 12,203,776 12,350,384 12,349,140 12,384,797 
Total goodwill and core deposit intangible513,731 514,535 515,356 516,289 517,282 
Total assets13,438,696 13,441,218 13,556,720 13,593,107 13,637,213 
Time deposits2,339,370 2,337,458 2,414,063 2,596,706 2,867,921 
Total deposits (including non-interest-bearing deposits)10,175,856 10,173,315 10,422,332 10,633,516 10,626,159 
Total borrowings1,333,245 1,325,372 1,214,219 1,016,722 1,095,173 
Total interest-bearing liabilities9,874,358 9,872,522 10,001,968 9,910,739 9,880,134 
Non-interest bearing deposits1,634,743 1,626,165 1,634,583 1,739,499 1,841,198 
Stockholders' equity1,689,035 1,674,453 1,673,040 1,650,699 1,642,899 
Tangible stockholders’ equity (4)
1,175,304 1,159,918 1,157,684 1,134,410 1,125,617 
Quarterly Yields and Costs
Total securities4.23 %4.22 %4.27 %3.81 %3.82 %
Loans receivable, net5.46 5.46 5.46 5.40 5.30 
Total interest-earning assets5.26 5.25 5.26 5.16 5.08 
Time deposits4.58 4.46 4.24 4.13 4.06 
Total cost of deposits (including non-interest-bearing deposits)2.44 2.37 2.31 2.22 1.99 
Total borrowed funds5.07 5.19 5.14 5.13 5.12 
Total interest-bearing liabilities3.20 3.14 3.03 2.91 2.71 
Net interest spread2.06 2.11 2.23 2.25 2.37 
Net interest margin2.67 2.71 2.81 2.82 2.91 
(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.



22


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

NON-GAAP RECONCILIATION
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Core Earnings:
Net income available to common stockholders (GAAP)
$24,112 $23,369 $27,663 $26,678 $19,663 
(Less) add non-recurring and non-core items:
Net gain on equity investments(1,420)(887)(1,923)(2,176)(1,452)
Net gain on sale of trust business(1,438)— (1,162)— — 
FDIC special assessment— — 418 1,663 — 
Merger related expenses1,669 — — — — 
Income tax expense on items270 188 642 129 351 
Core earnings (Non-GAAP)
$23,193 $22,670 $25,638 $26,294 $18,562 
Income tax expense$7,464 $7,082 $10,637 $8,591 $6,459 
Provision for credit losses517 3,114 591 3,153 10,283 
Less: income tax expense on non-core items270 188 642 129 351 
Core earnings PTPP (Non-GAAP)
$30,904 $32,678 $36,224 $37,909 $34,953 
Core earnings diluted earnings per share$0.39 $0.39 $0.44 $0.45 $0.32 
Core earnings PTPP diluted earnings per share$0.53 $0.56 $0.62 $0.65 $0.59 
Core Ratios (Annualized):
Return on average assets0.69 %0.68 %0.76 %0.77 %0.54 %
Return on average tangible stockholders’ equity7.85 7.86 8.91 9.20 6.54 
Return on average tangible common equity8.24 8.26 9.36 9.67 6.88 
Efficiency ratio66.00 63.47 61.05 60.02 64.29 
23

(continued)
For the Nine Months Ended September 30,
20242023
Core Earnings:
Net income available to common stockholders (GAAP)
$75,144 $73,335 
Add (less) non-recurring and non-core items:
Net (gain) loss on equity investments(1)
(4,230)1,300 
Net loss on sale of investments(1)
— 5,305 
Net gain on sale of trust business(2,600)— 
FDIC special assessment418 — 
Merger related expenses1,669 22 
Branch consolidation expense, net— 70 
Income tax expense (benefit) on items1,100 (1,608)
Core earnings (Non-GAAP)
$71,501 $78,424 
Income tax expense$25,183 $24,109 
Provision for credit losses4,222 14,525 
Less: income tax expense (benefit) on non-core items1,100 (1,608)
Core earnings PTPP (Non-GAAP)
$99,806 $118,666 
Core diluted earnings per share$1.22 $1.33 
Core earnings PTPP diluted earnings per share$1.71 $2.01 
Core Ratios (Annualized):
Return on average assets0.71 %0.78 %
Return on average tangible stockholders’ equity8.20 9.46 
Return on average tangible common equity8.61 9.96 
Efficiency ratio63.49 60.79 
(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)

September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Tangible Equity:
Total stockholders' equity$1,694,508 $1,676,669 $1,665,837 $1,661,945 $1,637,604 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,056 7,859 8,669 9,513 10,489 
Tangible stockholders' equity1,181,306 1,162,664 1,151,022 1,146,286 1,120,969 
Less:
Preferred stock55,527 55,527 55,527 55,527 55,527 
Tangible common equity$1,125,779 $1,107,137 $1,095,495 $1,090,759 $1,065,442 
Tangible Assets:
Total assets$13,488,483 $13,321,755 $13,418,978 $13,538,253 $13,498,183 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,056 7,859 8,669 9,513 10,489 
Tangible assets$12,975,281 $12,807,750 $12,904,163 $13,022,594 $12,981,548 
Tangible stockholders' equity to tangible assets9.10 %9.08 %8.92 %8.80 %8.64 %
Tangible common equity to tangible assets8.68 %8.64 %8.49 %8.38 %8.21 %


25
. . . 1 The 3Q 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 October 17, 2024. Exhibit 99.2 OceanFirst Financial Corp. 3Q 2024 Earnings Release Supplement1 October 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 October 17, 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

 
. . .Q3-24 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 Q3-24. (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 0.69% Core ROAA (1) 8.24% Core ROTCE (1) $0.53 Core PTPP Diluted EPS (1) 11.3% CET1 Ratio (2) ▪ NII hit an inflection point at quarter-end with stabilization or expansion expected in the next quarter. ▪ Increasing run-rate in operating expenses is related to two tactical non-bank acquisitions that will augment gain on sale revenue and go-forward loan growth. ▪ Asset quality metrics remain strong. Non-performing loans and loans 30 to 89 days past due as a percent of total loans were 0.25%(3) and 0.15%, respectively. ▪ Expanded funding for future loan growth through increased deposits (excluding brokered CDs) of $323 million and maintaining a loan-to-deposit ratio <100%.

 
. . . 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 Q3-24 and may contract slightly as our existing portfolio reprices with rate cuts. 5,334 5,354 5,323 5,325 5,273 957 944 915 858 842 652 666 677 616 661 2,928 2,980 2,965 2,978 3,003 5.30% 252 Q3-23 5.40% 251 Q4-23 5.46% 246 Q1-24 5.46% 242 Q2-24 Q3-24 10,124 10,195 10,126 10,019 5.46% 10,022 243 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 $820 million (or 8% of total loans), is set to mature in Q4-24 and 2025 with weighted average rates of 5.74% and 4.81%, 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 September 30, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of September 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 De minimis underlying concentrations: • NYC rent-regulated3 multi- family: $33.2 million • NYC Office Central Business District (CBD): $7.0 million CRE Investor Owned - Collateral Details $'millions CRE: Investor Owned % of Total WA LTV WA DSCR Office 1,076 23.3% 56.8 1.75 Retail 1,072 23.2% 53.7 1.97 Multi-Family 886 19.2% 62.8 1.67 Industrial / Warehouse 700 15.2% 49.2 2.05 Hospitality 173 3.7% 48.0 1.99 Other (1) 703 15.3% 44.8 1.86 CRE: Investor Owned 4,611 100.0% 53.9 1.86 Construction 662 CRE IO and Construction Total 5,273 CRE Investor Owned - Maturity Wall Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans Q4-24 182 5.74 63.43 1.46 1.82% 2025 638 4.81 55.84 1.74 6.37% Total 820 5.02 57.53 1.68 8.18%

 
. . . 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 September 30, 2024, of the Special Mention loans and Substandard loans represented above, 91.4% and 84.5% 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 1.89% as of Q3-24 compared to 2.06% as of Q4-19 (pre-pandemic). 0.20%0.27% 0.20% 8,783 Q3-23 0.26% 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 NPL to total loans NPA to total assets NPL - single CRE relationship Non-performing loans 22,70318,138 17,582 86,596 106,551 98,240 92,847 103,384 44,940 40,386 69,283 49,767 85,721 2.70% 1.30% Q3-23 2.96% 1.44% Q4-23 2.99% 1.65% Q1-24 3.45% 1.42% Q2-24 1.89% Q3-24 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 remaining value of the underlying property for this credit was liquidated in Q3-24. 25,252

 
. . .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) 0.09% 0.63% Q3-23 0.07% 0.66% Q4-23 0.07% 0.66% Q1-24 0.06% 0.69% Q2-24 0.06% 0.69% Q3-24 0.72% 0.73% 0.73% 0.75% 0.75% PCD & General Credit Marks ACL 10,283 3,153 591 3,114 517 8,271 35 349 1,452 -88 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Provision Expense Net Charge-offs (Recoveries)

 
. . . COVID-19 Pandemic Track Record of Strong Credit Performance 9 ▪ From 2006 to Q3-24, 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 70 bps for all commercial banks between $10 - $50 billion in assets. ▪ From 2006 to Q3-24, peak CRE net charge-offs to average CRE loans 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 Q3-24 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 Q3-24 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 increased by $269 million (or 3.5%) from the prior quarter. ▪ High yield savings declined by $33 million from the previous quarter as this portfolio was repriced. ▪ The decrease in Q3-24 time deposits was primarily driven by brokered CD run-off of $201 million, partly offset by retail CD growth of $60 million. Shift in Deposit Mix to Drive Retention ($’millions) 35.00% 2.02% Q3-23 38.00% 2.21% Q4-23 40.00% 2.31% Q1-24 42.00% 2.40% Q2-24 2.38% Q3-24 Deposit Beta (1) Cost of Deposits (Spot) 2,654 2,445 2,320 2,368 2,221 860 1,022 1,151 1,210 1,289 1,484 1,399 1,260 1,116 1,072 3,709 3,912 3,866 3,668 3,896 1,827 1,657 1,640 1,633 1,638 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 10,534 10,435 10,237 9,994 10,116 Non-Int. Bearing Int. Bearing Checking Savings Money Market Time Deposits Deposit Beta and Cost Trend 35% % 40% 42%Cost of Deposits Type of Account Q3-24 Avg. Sep 30 Spot Int. Bearing Checking 2.24% 2.27% Money Market 3.63% 3.37% Savings 0.81% 0.81% Time Deposits 4.58% 4.47% Total (incl. non-int. bearing) 2.44% 2.38%

 
. . .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 2.91% 2.85% Q3-23 2.82% 2.77% Q4-23 2.81% 2.77% Q1-24 2.71% 2.67% Q2-24 2.67% 2.65% Q3-24 NIM Core NIM Net Interest Income ($’000) 90,996 Q3-23 87,824 Q4-23 86,224 Q1-24 82,263 Q2-24 82,219 Q3-24 Net Interest Income Headwinds ▪ Competitive market environment as peers compete on rate for quality credit. ▪ Remaining disciplined on deposit pricing and managing funding costs. Q2-24 NIM -0.02 Rate environment, change in balances and funding mix, and other -0.02 Impact of purchase accounting Q3-24 NIM 2.71% 2.67% Tailwinds ▪ Deposit rate pressure easing with 9/30/24 spot rates lower than our quarterly average.

 
. . . Core Efficiency Ratio1 Expense Discipline and Focused Investment 12 Core Non-Interest Expense (1) ($’000) 8,411 7,999 7,761 8,377 9,512 5,258 2,858 2,732 2,161 1,970 6,086 6,430 5,956 6,018 5,940 2,557 2,723 2,717 2,685 2,618 6,638 6,390 6,329 6,243 6,183 35,534 32,126 32,759 33,136 35,844 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 64,484 58,526 58,254 58,620 62,067 Compensation & employee benefits Occupancy & Equipment FDIC & regulatory assessments Data processing Professional fees Other Opex 64.29% Q3-23 60.02% Q4-23 61.05% Q1-24 63.47% Q2-24 66.00% Q3-24 1.88% 1.71% 1.73% 1.75% 1.84% 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. ▪ Q3-24 core non-interest expenses increased by $3.4 million (or 5.9%) from the prior quarter to $62.1 million. Of this, $1.6 million related to new strategic investments. ▪ We expect an increase in operating expenses in Q4-24 of ~$5 million driven by two tactical non-bank acquisitions. (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 $1.35 (or 8%) compared to the same quarter last year. • Capital remains strong and above “well capitalized” levels. • Repurchased 87,324 shares in the quarter totaled $1.4 million. • Share repurchase authorization totaling 1.6 million shares outstanding. Capital Management ($’millions) 17.93 18.35 18.63 18.93 19.28 27.56 27.96 28.32 28.67 29.02 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Book Value per Share Tangible Book Value per Common Share 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 7.85% 8.24% 0.69% Q3-24 Core ROTE Core ROTCE Core ROAA 12 12 12 12 12 15 5 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 9.10% 11.30% 1 Q3-24 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 Q3-24. 10.4% 10.9% 11.0 . % 1.3

 
. . .Business Model Strength Driving Significant Capital Return 14 $12.33 $0.49 $0.55 $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 $6.95 $19.28 Q3-242013 $15.62 $15.53 $16.82 $18.42 $20.55 $21.36 $13.95 $25.61 $27.68 $29.58 $12.91 2014 $0.94 $23.60 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 ▪ 111th consecutive quarter ▪ Historical Payout Ratio of 30% to 40% ▪ Repurchased 87,324 shares in Q3-24 ▪ 1.6 million shares available to be repurchased ▪ Total repurchases of 1,383,238 shares in YTD Sep-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 56.4% Total Capital Return per Share 139.9%

 
. . .Management 2024 Outlook 15 Loans Deposits Operating Expenses Net Interest Income Capital • We expect low to mid-single digit annualized growth in Q4-24. • Maintain loan-to-deposit ratio ~100% for the entire year. • Continued mix shift may pressure funding costs. Low to mid-single digit annualized growth in Q4-24 Growth consistent with loan growth Increase to run-rate Stabilization / inflection upward in Q4-24 Robust CET1 ratio (>10%) Guidance Key Assumptions / Commentary • Increase of approximately $5 million per quarter from two tactical non-bank acquisitions. • Both acquisitions expected to be accretive to earnings no later than Q1-25 with minimal TBV dilution. • 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 rates, loan growth, and funding trends. • Stable to modest improvement subject to expected growth and interest rate trends. Other Income Growth in Q4-24 • Growth subject to production volumes and gain on sale in mortgage banking, resulting from $2-3 million increased quarterly expenses related to one acquisition.

 
. . . 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 • 96% 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 64.1 and weighted average DSCR of 1.86. • 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 49% of the portfolio under $1 million and 80% under $5 million. Notes: • All data represents CRE Investor balances, excluding purchase accounting marks and Construction as of September 30, 2024, unless otherwise noted. • WA LTV represents the weighted average of loan balances as of September 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 37.2% 60.3 1.86 General Office 32 28.0% 48.6 2.49 Life Sciences & Medical 40 34.8% 80.6 1.37 CBD - Office & Construction 116 100.0% 64.1 1.86 In the above tables, Construction consists of all property segments (e.g., co-op, hospitality, industrial / warehouse, etc). CRE Investor Owned: Office + Construction CBD Bifurcation $'millions Balance % of Total % of CBD MA 44 2.5% 37.6% NJ 43 2.5% 37.2% PA 22 1.3% 19.1% NY 7 0.4% 6.0% Central Business District 116 6.7% 100.0% Non Central Business District 1,622 93.3% Office + Construction 1,738 100.0% CRE Investor Owned: Office + Construction $'millions Balance % of Office % of Total Loans WA LTV WA DSCR General Office 533 49.5% 5.3% 51.9 1.84 Life Sciences & Medical 284 26.4% 2.8% 56.8 1.81 Credit Tenant 260 24.1% 2.6% 67.1 1.51 Office 1,076 100.0% 10.7% 56.8 1.75 Construction (all property segments) 662 6.6% Office + Construction 1,738 17.3%

 
. . . 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 Q2-24, median NCOs / average assets totaled 1 bp for Northeastern banks versus 5 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 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 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 Q2’24 NCOs Southeast 0.09% Southwest 0.07% Midwest 0.05% Mid Atlantic 0.05% West 0.05% Northeast 0.01%

 
. . . 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 Q2'24 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 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Core Earnings: Net income available to common stockholders (GAAP) 24,112 23,369 27,663 26,678 19,663 Add (less) non-recurring and non-core items: Net gain on equity investments (1,420) (887) (1,923) (2,176) (1,452) Net gain on sale of trust business (1,438) - (1,162) - - FDIC special assessment - - 418 1,663 - Merger related expenses 1,669 - - - - Income tax expense on items 270 188 642 129 351 Core earnings (Non-GAAP) 23,193 22,670 25,638 26,294 18,562 Income tax expense 7,464 7,082 10,637 8,591 6,459 Provision for credit losses 517 3,114 591 3,153 10,283 Less: income tax expense on non-core items 270 188 642 129 351 Core earnings PTPP (Non-GAAP) 30,904 32,678 36,224 37,909 34,953 Core earnings diluted earnings per share 0.39 0.39 0.44 0.45 0.32 Core earnings PTPP diluted earnings per share 0.53 0.56 0.62 0.65 0.59 Core Ratios (Annualized): Return on average assets 0.69 0.68 0.76 0.77 0.54 Return on average tangible stockholders' equity 7.85 7.86 8.91 9.20 6.54 Return on average tangible common equity 8.24 8.26 9.36 9.67 6.88 Efficiency ratio 66.00 63.47 61.05 60.02 64.29

 
. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Tangible Equity Total stockholders' equity 1,694,508 1,676,669 1,665,837 1,661,945 1,637,604 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 7,056 7,859 8,669 9,513 10,489 Tangible stockholders' equity 1,181,306 1,162,664 1,151,022 1,146,286 1,120,969 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,125,779 1,107,137 1,095,495 1,090,759 1,065,442 Tangible Assets Total Assets 13,488,483 13,321,755 13,418,978 13,538,253 13,498,183 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 7,056 7,859 8,669 9,513 10,489 Tangible assets 12,975,281 12,807,750 12,904,163 13,022,594 12,981,548

 
v3.24.3
Document and Entity Information
Oct. 17, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 17, 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
OceanFirst Financial (NASDAQ:OCFCP)
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