0001004702false00010047022024-07-182024-07-180001004702us-gaap:CommonStockMember2024-07-182024-07-180001004702us-gaap:SeriesAPreferredStockMember2024-07-182024-07-18

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 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 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
Press Release datedJuly 18, 2024
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




















































oceanfirstpressreleas19.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 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,
20242024202320242023
Return on average assets 0.70 %0.82 %0.80 %0.76 %0.81 %
Return on average stockholders’ equity5.61 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 ratio62.86 59.56 62.28 61.17 61.53 
Net interest margin2.71 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):
20242024202320242023
Return on average assets 0.68 %0.76 %0.81 %0.72 %0.90 %
Return on average tangible stockholders’ equity7.86 8.91 9.84 8.38 10.98 
Return on average tangible common equity8.26 9.36 10.36 8.81 11.56 
Efficiency ratio63.47 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.
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•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.
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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).
4

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
5

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
6

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,
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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
8

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
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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.
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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.
* * *
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    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.

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

June 30,March 31,December 31,June 30,
2024202420232023
(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 value721,484 744,944 753,892 452,016 
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 investments104,132 103,201 100,163 96,452 
Restricted equity investments, at cost92,679 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-sale2,062 4,702 5,166 4,200 
Interest and dividends receivable50,976 52,502 51,874 47,933 
Premises and equipment, net117,392 119,211 121,372 124,139 
Bank owned life insurance267,867 266,615 266,498 263,836 
Assets held for sale28 28 28 3,608 
Goodwill506,146 506,146 506,146 506,146 
Core deposit intangible7,859 8,669 9,513 11,476 
Other assets202,972 199,974 179,661 213,432 
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 advances789,337 658,436 848,636 1,091,666 
Securities sold under agreements to repurchase with customers80,000 66,798 73,148 74,452 
Other borrowings424,490 425,722 196,456 195,925 
Advances by borrowers for taxes and insurance25,168 28,187 22,407 27,839 
Other liabilities332,074 337,147 300,712 364,401 
Total liabilities11,645,086 11,753,141 11,876,308 11,912,620 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,675,885 1,665,112 1,661,163 1,625,435 
Non-controlling interest784 725 782 848 
Total stockholders’ equity1,676,669 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 













13

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,
20242024202320242023
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$136,049 $137,121 $129,104 $273,170 $250,824 
Debt securities19,039 19,861 14,320 38,900 28,606 
Equity investments and other4,338 4,620 6,672 8,958 9,700 
Total interest income159,426 161,602 150,096 321,028 289,130 
Interest expense:
Deposits60,071 59,855 37,934 119,926 59,264 
Borrowed funds17,092 15,523 20,053 32,615 38,955 
Total interest expense77,163 75,378 57,987 152,541 98,219 
Net interest income82,263 86,224 92,109 168,487 190,911 
Provision for credit losses3,114 591 1,229 3,705 4,242 
Net interest income after provision for credit losses79,149 85,633 90,880 164,782 186,669 
Other income:
Bankcard services revenue1,571 1,416 1,544 2,987 2,874 
Trust and asset management revenue419 526 645 945 1,257 
Fees and service charges5,015 4,473 5,602 9,488 10,761 
Net gain on sales of loans420 357 33 777 53 
Net gain (loss) on equity investments887 1,923 (559)2,810 (7,360)
Income from bank owned life insurance1,726 1,862 1,182 3,588 2,463 
Commercial loan swap income241 138 — 379 701 
Other706 1,591 481 2,297 252 
Total other income10,985 12,286 8,928 23,271 11,001 
Operating expenses:
Compensation and employee benefits33,136 32,759 34,222 65,895 68,142 
Occupancy5,175 5,199 5,265 10,374 10,504 
Equipment1,068 1,130 1,101 2,198 2,306 
Marketing1,175 990 961 2,165 1,943 
Federal deposit insurance and regulatory assessments2,685 3,135 2,465 5,820 4,214 
Data processing6,018 5,956 6,165 11,974 12,319 
Check card processing1,075 1,050 1,214 2,125 2,495 
Professional fees2,161 2,732 5,083 4,893 10,181 
Amortization of core deposit intangible810 844 994 1,654 2,021 
Branch consolidation expense, net— — — — 70 
Merger related expenses— — — — 22 
Other operating expense5,317 4,877 5,460 10,194 10,022 
Total operating expenses58,620 58,672 62,930 117,292 124,239 
Income before provision for income taxes31,514 39,247 36,878 70,761 73,431 
Provision for income taxes7,082 10,637 8,996 17,719 17,650 
Net income24,432 28,610 27,882 53,042 55,781 
Net income (loss) attributable to non-controlling interest59 (57)85 2 101 
Net income attributable to OceanFirst Financial Corp.24,373 28,667 27,797 53,040 55,680 
Dividends on preferred shares1,004 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 outstanding58,356 58,789 59,147 58,489 58,988 
Average diluted shares outstanding58,357 58,791 59,153 58,490 59,038 

14

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Commercial:
Commercial real estate - investor$5,324,994 $5,322,755 $5,353,974 $5,334,279 $5,319,686 
Commercial real estate - owner-occupied857,710 914,582 943,891 957,216 981,618 
Commercial and industrial616,400 677,176 666,532 652,119 620,284 
Total commercial6,799,104 6,914,513 6,964,397 6,943,614 6,921,588 
Consumer:
Residential real estate2,977,698 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 consumer3,220,224 3,211,135 3,230,198 3,179,957 3,162,042 
Total loans10,019,328 10,125,648 10,194,595 10,123,571 10,083,630 
Deferred origination costs (fees), net10,628 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):
Commercial7.88 %$166,206 $66,167 $124,707 $50,756 $39,164 
Residential real estate6.96 80,330 57,340 49,499 66,682 58,022 
Other consumer8.81 12,586 13,030 8,819 13,795 18,621 
Total7.64 %$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,
20242024202320232023
Average Yield
Loan originations:
Commercial7.98 %$56,053 $123,010 $94,294 $90,263 $197,732 
Residential real estate6.74 121,388 78,270 113,227 92,299 100,542 
Other consumer8.99 16,970 11,405 16,971 17,019 22,487 
Total7.29 %$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.

DEPOSITSAt
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Type of Account
Non-interest-bearing$1,632,521 $1,639,828 $1,657,119 $1,827,381 $1,854,136 
Interest-bearing checking3,667,837 3,865,699 3,911,766 3,708,874 3,537,834 
Money market1,210,312 1,150,979 1,021,805 860,025 770,440 
Savings1,115,688 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.

15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY (1)
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Non-performing loans:
Commercial real estate - investor$19,761 $21,507 $20,820 $20,723 $13,000 
Commercial real estate - owner-occupied4,081 3,355 351 240 565 
Commercial and industrial434 567 304 1,120 199 
Residential real estate7,213 7,181 5,542 5,624 6,174 
Other consumer1,933 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 
Performing27,184 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 receivable0.33 0.35 0.29 0.30 0.23 
Non-performing assets as a percent of total assets0.25 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 loans2,841 3,525 3,183 3,177 3,171 
Delinquent PCD and non-performing loans 30 to 89 days1,188 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 loans30,581 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 assets0.23 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.










16

(continued)

NET LOAN CHARGE-OFFSFor the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Net loan charge-offs:
Loan charge-offs (1)
$(1,600)$(441)$(98)$(8,379)$(206)
Recoveries on loans148 92 63 108 83 
Net loan charge-offs$(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 estate87 66 9 17 9 
Other consumer37 (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.

17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
June 30, 2024March 31, 2024June 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)
Commercial6,845,988 102,620 6.03 6,925,048 104,421 6.06 6,912,698 99,350 5.76 
Residential real estate2,978,749 29,072 3.90 2,974,468 28,596 3.85 2,895,629 25,936 3.58 
Other consumer246,024 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, net10,012,491 136,049 5.46 10,088,771 137,121 5.46 10,010,785 129,104 5.17 
Total interest-earning assets12,203,776 159,426 5.25 12,350,384 161,602 5.26 12,250,055 150,096 4.91 
Non-interest-earning assets1,237,442 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 market1,183,429 10,482 3.56 1,092,003 9,172 3.38 694,311 3,678 2.12 
Savings1,164,203 2,604 0.90 1,355,718 4,462 1.32 1,248,312 389 0.12 
Time deposits2,337,458 25,942 4.46 2,414,063 25,426 4.24 2,458,872 21,903 3.57 
Total8,547,150 60,071 2.83 8,787,749 59,855 2.74 8,119,784 37,934 1.87 
FHLB Advances711,801 8,746 4.94 644,818 7,771 4.85 1,246,914 15,406 4.96 
Securities sold under agreements to repurchase72,305 478 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 borrowings1,325,372 17,092 5.19 1,214,219 15,523 5.14 1,603,126 20,053 5.02 
Total interest-bearing liabilities9,872,522 77,163 3.14 10,001,968 75,378 3.03 9,722,910 57,987 2.39 
Non-interest-bearing deposits1,626,165 1,634,583 1,873,226 
Non-interest-bearing liabilities(4)
268,078 247,129 244,892 
Total liabilities11,766,765 11,883,680 11,841,028 
Stockholders’ equity1,674,453 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 %

18

(continued)
For the Six Months Ended June 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$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)
Commercial6,885,518 207,041 6.05 6,876,553 192,130 5.63 
Residential real estate2,976,608 57,668 3.87 2,883,904 51,097 3.54 
Other consumer247,210 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, net10,050,631 273,170 5.46 9,968,082 250,824 5.07 
Total interest-earning assets12,277,080 321,028 5.25 12,130,712 289,130 4.80 
Non-interest-earning assets1,221,889 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 market1,137,716 19,653 3.47 699,940 5,437 1.57 
Savings1,259,960 7,066 1.13 1,308,381 723 0.11 
Time deposits2,375,760 51,369 4.35 2,144,514 34,870 3.28 
Total8,667,449 119,926 2.78 7,943,248 59,264 1.50 
FHLB Advances678,309 16,517 4.90 1,234,919 29,824 4.87 
Securities sold under agreements to repurchase70,403 889 2.54 71,825 282 0.79 
Other borrowings (4)
521,084 15,209 5.87 295,248 8,849 6.04 
Total borrowings1,269,796 32,615 5.17 1,601,992 38,955 4.90 
Total interest-bearing liabilities9,937,245 152,541 3.09 9,545,240 98,219 2.08 
Non-interest-bearing deposits1,630,374 1,950,437 
Non-interest-bearing liabilities (4)
257,603 242,864 
Total liabilities11,825,222 11,738,541 
Stockholders’ equity1,673,747 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.
19

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
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 losses1,105,843 1,128,666 1,159,735 1,189,339 1,222,507 
Equity investments104,132 103,201 100,163 97,908 96,452 
Restricted equity investments, at cost92,679 85,689 93,766 82,484 105,305 
Loans receivable, net of allowance for loan credit losses9,961,117 10,068,209 10,136,721 10,068,156 10,030,106 
Deposits9,994,017 10,236,851 10,434,949 10,533,929 10,158,337 
Federal Home Loan Bank advances789,337 658,436 848,636 606,056 1,091,666 
Securities sold under agreements to repurchase and other borrowings504,490 492,520 269,604 279,164 270,377 
Total stockholders’ equity1,676,669 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,
20242024202320232023
Selected Operating Data:
Interest income$159,426 $161,602 $160,434 $158,410 $150,096 
Interest expense77,163 75,378 72,610 67,414 57,987 
Net interest income82,263 86,224 87,824 90,996 92,109 
Provision for credit losses3,114 591 3,153 10,283 1,229 
Net interest income after provision for credit losses79,149 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 investments887 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 taxes31,514 39,247 36,343 26,991 36,878 
Provision for income taxes7,082 10,637 8,591 6,459 8,996 
Net income24,432 28,610 27,752 20,532 27,882 
Net income (loss) attributable to non-controlling interest59 (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 
20

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
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 assets12.59 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 spread2.11 2.23 2.25 2.37 2.52 
Net interest margin2.71 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 ratio100.30 98.90 97.70 96.10 99.30 


For the Six Months Ended June 30,
20242023
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 spread2.16 2.70 
Net interest margin2.76 3.17 
Operating expenses to average assets1.75 1.88 
Efficiency ratio (5)
61.17 61.53 


21

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
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/M403,647 407,478 401,420 385,317 397,927 
Total AUA/M554,166 644,369 737,189 722,230 737,817 
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 period28.67 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 period58,481,41858,812,49859,447,68459,421,498 59,420,859
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 38 38 
Quarterly Average Balances
Total securities$2,058,711 $2,098,421 $1,863,136 $1,873,450 $1,931,032 
Loans receivable, net10,012,491 10,088,771 10,089,161 10,040,522 10,010,785 
Total interest-earning assets12,203,776 12,350,384 12,349,140 12,384,797 12,250,055 
Total goodwill and core deposit intangible514,535 515,356 516,289 517,282 518,265 
Total assets13,441,218 13,556,720 13,593,107 13,637,213 13,467,721 
Time deposits2,337,458 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 borrowings1,325,372 1,214,219 1,016,722 1,095,173 1,603,126 
Total interest-bearing liabilities9,872,522 10,001,968 9,910,739 9,880,134 9,722,910 
Non-interest bearing deposits1,626,165 1,634,583 1,739,499 1,841,198 1,873,226 
Stockholders' equity1,674,453 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 securities4.22 %4.27 %3.81 %3.82 %3.47 %
Loans receivable, net5.46 5.46 5.40 5.30 5.17 
Total interest-earning assets5.25 5.26 5.16 5.08 4.91 
Time deposits4.46 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 funds5.19 5.14 5.13 5.12 5.02 
Total interest-bearing liabilities3.14 3.03 2.91 2.71 2.39 
Net interest spread2.11 2.23 2.25 2.37 2.52 
Net interest margin2.71 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.



22


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,
20242024202320232023
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 items188 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 losses3,114 591 3,153 10,283 1,229 
Less: income tax expense (benefit) on non-core items188 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 assets0.68 %0.76 %0.77 %0.54 %0.81 %
Return on average tangible stockholders’ equity7.86 8.91 9.20 6.54 9.84 
Return on average tangible common equity8.26 9.36 9.67 6.88 10.36 
Efficiency ratio63.47 61.05 60.02 64.29 61.94 
23

(continued)
For the Six Months Ended June 30,
20242023
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 assessment418 — 
Merger related expenses— 22 
Branch consolidation expense, net— 70 
Income tax expense (benefit) on items830 (1,959)
Core earnings (Non-GAAP)
$48,308 $59,862 
Income tax expense$17,719 $17,650 
Provision for credit losses3,705 4,242 
Less: income tax expense (benefit) on non-core items830 (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 assets0.72 %0.90 %
Return on average tangible stockholders’ equity8.38 10.98 
Return on average tangible common equity8.81 11.56 
Efficiency ratio62.24 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.


24

(continued)

June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Tangible Equity:
Total stockholders' equity$1,676,669 $1,665,837 $1,661,945 $1,637,604 $1,626,283 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,859 8,669 9,513 10,489 11,476 
Tangible stockholders' equity1,162,664 1,151,022 1,146,286 1,120,969 1,108,661 
Less:
Preferred stock55,527 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:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,859 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 assets9.08 %8.92 %8.80 %8.64 %8.51 %
Tangible common equity to tangible assets8.64 %8.49 %8.38 %8.21 %8.09 %


25
. . . 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

 
v3.24.2
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
OceanFirst Financial (NASDAQ:OCFCP)
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