OceanFirst Financial Corp. Announces First Quarter Financial Results

RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information): For the Three Months Ended, March 31, December 31, March 31,Performance Ratios (Annualized): 2025 2024 2024Return on average assets 0.62% 0.61% 0.82%Return on average stockholders’ equity 4.85 4.88 6.65 Return on average tangible stockholders’ equity (a) 7.05 7.12 9.61 Return on average tangible common equity (a) 7.40 7.47 10.09 Efficiency ratio 65.67 67.86 59.56 Net interest margin 2.90 2.69 2.81 (a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures. Core earnings1 for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter. Core earnings PTPP1 for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows: For the Three Months Ended, March 31, December 31, March 31,Core Ratios1 (Annualized): 2025 2024 2024 Return on average assets 0.62% 0.65% 0.76%Return on average tangible stockholders’ equity 7.00 7.51 8.91 Return on average tangible common equity 7.34 7.89 9.36 Efficiency ratio 65.81 67.74 61.05 Core diluted earnings per share $0.35 $0.38 $0.44 Core PTPP diluted earnings per share 0.56 0.51 0.62 Key developments for the recent quarter are described below: Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio. Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.” The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025. 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 (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). 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. Results of Operations The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments. Net Interest Income and Margin Three months ended March 31, 2025 vs. March 31, 2024 Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets. Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%. The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances. Three months ended March 31, 2025 vs. December 31, 2024 Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter. Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%. Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%. Provision for Credit Losses Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions. Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion. Non-interest Income Three months ended March 31, 2025 vs. March 31, 2024 Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business. Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above. Three months ended March 31, 2025 vs. December 31, 2024 Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above. Non-interest Expense Three months ended March 31, 2025 vs. March 31, 2024 Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment. Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year. Three months ended March 31, 2025 vs. December 31, 2024 Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000. Income Tax Expense The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits. Financial Condition March 31, 2025 vs. December 31, 2024 Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs. Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits. Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 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 March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%. Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax. The Company’s tangible common equity2 increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above. Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share2 increased to $19.16, as compared to $18.98. 2 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. Asset Quality March 31, 2025 vs. December 31, 2024 The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. 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 $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million. Explanation of Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items. Annual Meeting The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com - Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting. Conference Call As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section. OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. Forward-Looking Statements In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, 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 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, 2024, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(dollars in thousands) March 31, December 31, March 31, 2025 2024 2024 (Unaudited) (Unaudited)Assets Cash and due from banks $163,721 $123,615 $130,422 Debt securities available-for-sale, at estimated fair value 746,168 827,500 744,944 Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024) 1,005,476 1,045,875 1,128,666 Equity investments 87,365 84,104 103,201 Restricted equity investments, at cost 102,172 108,634 85,689 Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024 10,058,072 10,055,429 10,068,209 Loans held-for-sale 9,698 21,211 4,702 Interest and dividends receivable 44,843 45,914 52,502 Other real estate owned 1,917 1,811 — Premises and equipment, net 114,588 115,256 119,211 Bank owned life insurance 269,398 270,208 266,615 Assets held for sale — — 28 Goodwill 523,308 523,308 506,146 Intangibles 11,740 12,680 8,669 Other assets 170,812 185,702 199,974 Total assets $13,309,278 $13,421,247 $13,418,978 Liabilities and Stockholders’ Equity Deposits $10,177,023 $10,066,342 $10,236,851 Federal Home Loan Bank advances 891,021 1,072,611 658,436 Securities sold under agreements to repurchase with customers 65,132 60,567 66,798 Other borrowings 197,808 197,546 425,722 Advances by borrowers for taxes and insurance 28,789 23,031 28,187 Other liabilities 240,388 298,393 337,147 Total liabilities 11,600,161 11,718,490 11,753,141 Stockholders’ equity: OceanFirst Financial Corp. stockholders’ equity 1,708,322 1,701,650 1,665,112 Non-controlling interest 795 1,107 725 Total stockholders’ equity 1,709,117 1,702,757 1,665,837 Total liabilities and stockholders’ equity $13,309,278 $13,421,247 $13,418,978 OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share amounts) For the Three Months Ended, March 31, December 31, March 31, 2025 2024 2024 |---------------------- (Unaudited) ----------------------|Interest income: Loans $133,019 $135,438 $137,121 Debt securities 17,270 19,400 19,861 Equity investments and other 3,414 4,782 4,620 Total interest income 153,703 159,620 161,602 Interest expense: Deposits 51,046 59,889 59,855 Borrowed funds 16,005 16,402 15,523 Total interest expense 67,051 76,291 75,378 Net interest income 86,652 83,329 86,224 Provision for credit losses 5,340 3,467 591 Net interest income after provision for credit losses 81,312 79,862 85,633 Other income: Bankcard services revenue 1,463 1,595 1,416 Trust and asset management revenue 406 416 526 Fees and service charges 4,712 6,207 4,473 Net gain on sales of loans 858 1,076 357 Net gain (loss) on equity investments 205 (5) 1,923 Net loss from other real estate operations (16) (20) — Income from bank owned life insurance 1,852 2,538 1,862 Commercial loan swap income 620 86 138 Other 1,153 339 1,591 Total other income 11,253 12,232 12,286 Operating expenses: Compensation and employee benefits 36,740 36,602 32,759 Occupancy 5,497 5,280 5,199 Equipment 921 1,026 1,130 Marketing 1,108 1,615 990 Federal deposit insurance and regulatory assessments 2,983 2,517 3,135 Data processing 6,647 6,366 5,956 Check card processing 1,170 1,134 1,050 Professional fees 2,425 2,620 2,732 Amortization of intangibles 940 876 844 Merger related expenses — 110 — Other operating expense 5,863 6,703 4,877 Total operating expenses 64,294 64,849 58,672 Income before provision for income taxes 28,271 27,245 39,247 Provision for income taxes 6,808 5,083 10,637 Net income 21,463 22,162 28,610 Net (loss) income attributable to non-controlling interest (46) 253 (57)Net income attributable to OceanFirst Financial Corp. 21,509 21,909 28,667 Dividends on preferred shares 1,004 1,004 1,004 Net income available to common stockholders $20,505 $20,905 $27,663 Basic earnings per share $0.35 $0.36 $0.47 Diluted earnings per share $0.35 $0.36 $0.47 Average basic shares outstanding 58,102 58,026 58,789 Average diluted shares outstanding 58,111 58,055 58,791 OceanFirst Financial Corp.SELECTEDLOANAND DEPOSIT DATA(dollars in thousands) LOANS RECEIVABLE At March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Commercial: Commercial real estate - investor $5,200,137 $5,287,683 $5,273,159 $5,324,994 $5,322,755 Commercial and industrial: Commercial and industrial - real estate (1) 896,647 902,219 841,930 857,710 914,582 Commercial and industrial - non-real estate (1) 748,575 647,945 660,879 616,400 677,176 Total commercial and industrial 1,645,222 1,550,164 1,502,809 1,474,110 1,591,758 Total commercial 6,845,359 6,837,847 6,775,968 6,799,104 6,914,513 Consumer: Residential real estate 3,053,318 3,049,763 3,003,213 2,977,698 2,965,276 Home equity loans and lines and other consumer ("other consumer") 226,633 230,462 242,975 242,526 245,859 Total consumer 3,279,951 3,280,225 3,246,188 3,220,224 3,211,135 Total loans 10,125,310 10,118,072 10,022,156 10,019,328 10,125,648 Deferred origination costs (fees), net 11,560 10,964 10,508 10,628 9,734 Allowance for loan credit losses (78,798) (73,607) (69,066) (68,839) (67,173) Loans receivable, net $10,058,072 $10,055,429 $9,963,598 $9,961,117 $10,068,209 Mortgage loans serviced for others $222,963 $191,279 $142,394 $104,136 $89,555 At March 31, 2025 Average Yield Loan pipeline (2): Commercial7.37% $375,622 $197,491 $199,818 $166,206 $66,167 Residential real estate6.41 116,121 97,385 137,978 80,330 57,340 Other consumer8.51 12,681 11,783 13,788 12,586 13,030 Total7.18% $504,424 $306,659 $351,584 $259,122 $136,537 For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Average Yield Loan originations: Commercial (3)7.61% $233,968 $268,613 $245,886 $56,053 $123,010 Residential real estate6.53 167,162 235,370 169,273 121,388 78,270 Other consumer8.49 15,825 11,204 15,760 16,970 11,405 Total7.21% $416,955 $515,187 $430,919 $194,411 $212,685 Loans sold $104,991 (4)$127,508 $65,296 $45,045 $29,965 (1)During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate - owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial - real estate’ and ‘commercial and industrial - non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.(2)Loan pipeline includes loans approved but not funded.(3)Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.(4)Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025. DEPOSITS At March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Type of Account Non-interest-bearing $1,660,738 $1,617,182 $1,638,447 $1,632,521 $1,639,828 Interest-bearing checking 4,006,653 4,000,553 3,896,348 3,667,837 3,865,699 Money market 1,337,570 1,301,197 1,288,555 1,210,312 1,150,979 Savings 1,052,504 1,066,438 1,071,946 1,115,688 1,260,309 Time deposits (1) 2,119,558 2,080,972 2,220,871 2,367,659 2,320,036 Total deposits $10,177,023 $10,066,342 $10,116,167 $9,994,017 $10,236,851 (1)Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively. OceanFirst Financial Corp.ASSET QUALITY(dollars in thousands) March 31, December 31, September 30, June 30, March 31,ASSET QUALITY(1) 2025 2024 2024 2024 2024 Non-performing loans: Commercial real estate - investor $23,595 $17,000 $12,478 $19,761 $21,507 Commercial and industrial: Commercial and industrial - real estate 4,690 4,787 4,368 4,081 3,355 Commercial and industrial - non-real estate 22 32 122 434 567 Total commercial and industrial 4,712 4,819 4,490 4,515 3,922 Residential real estate 5,709 10,644 9,108 7,213 7,181 Other consumer 2,954 3,064 2,063 1,933 2,401 Total non-performing loans(1) $36,970 $35,527 $28,139 $33,422 $35,011 Other real estate owned 1,917 1,811 — — — Total non-performing assets $38,887 $37,338 $28,139 $33,422 $35,011 Delinquent loans 30 to 89 days $46,246 $36,550 $15,458 $9,655 $17,534 Modifications to borrowers experiencing financial difficulty(2) Non-performing (included in total non-performing loans above) $8,307 $3,232 $3,043 $3,210 $3,467 Performing 27,592 27,631 20,652 20,529 8,579 Total modifications to borrowers experiencing financial difficulty(2) $35,899 $30,863 $23,695 $23,739 $12,046 Allowance for loan credit losses $78,798 $73,607 $69,066 $68,839 $67,173 Allowance for loan credit losses as a percent of total loans receivable(3) 0.78% 0.73% 0.69% 0.69% 0.66%Allowance for loan credit losses as a percent of total non-performing loans(3) 213.14 207.19 245.45 205.97 191.86 Non-performing loans as a percent of total loans receivable 0.37 0.35 0.28 0.33 0.35 Non-performing assets as a percent of total assets 0.29 0.28 0.21 0.25 0.26 Supplemental PCD and non-performing loans PCD loans, net of allowance for loan credit losses $21,737 $22,006 $15,323 $16,058 $16,700 Non-performing PCD loans 7,724 7,931 2,887 2,841 3,525 Delinquent PCD and non-performing loans 30 to 89 days 10,489 2,997 1,279 1,188 2,088 PCD modifications to borrowers experiencing financial difficulty(2) 22 23 24 26 25 Asset quality, excluding PCD loans(4) Non-performing loans(1) 29,246 27,596 25,252 30,581 31,486 Non-performing assets 31,163 29,407 25,252 30,581 31,486 Delinquent loans 30 to 89 days (excludes non-performing loans) 35,757 33,553 14,179 8,467 15,446 Modifications to borrowers experiencing financial difficulty(2) 35,877 30,840 23,671 23,713 12,021 Allowance for loan credit losses as a percent of total non-performing loans(3) 269.43% 266.73% 273.51% 225.10% 213.34%Non-performing loans as a percent of total loans receivable 0.29 0.27 0.25 0.31 0.31 Non-performing assets as a percent of total assets 0.23 0.22 0.19 0.23 0.23 (1)The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.(2)Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.(3)Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.(4)All balances and ratios exclude PCD loans. NET LOAN (CHARGE-OFFS) RECOVERIES For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Net loan (charge-offs) recoveries: Loan charge-offs $(798) $(55) $(124) $(1,600) $(441)Recoveries on loans 162 213 212 148 92 Net loan (charge-offs) recoveries $(636) $158 $88 $(1,452) $(349)Net loan (charge-offs) recoveries to average total loans (annualized) 0.03% NM* NM* 0.06% 0.01%Net loan (charge-offs) recoveries detail: Commercial $25 $92 $129 $(1,576)(1)$(35)Residential real estate (720)(2) (17) (6) 87 66 Other consumer 59 83 (35) 37 (380)Net loan (charge-offs) recoveries $(636) $158 $88 $(1,452) $(349) (1)The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.(2)The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.*Not meaningful as amounts are net loan recoveries. OceanFirst Financial Corp.ANALYSIS OF NET INTEREST INCOME For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024(dollars in thousands) AverageBalance Interest AverageYield/Cost (1) AverageBalance Interest AverageYield/Cost (1) AverageBalance Interest AverageYield/Cost (1)Assets: Interest-earning assets: Interest-earning deposits and short-term investments $95,439 $983 4.18% $195,830 $2,415 4.91% $163,192 $2,226 5.49%Securities (2) 2,003,206 19,701 3.99 2,116,911 21,767 4.09 2,098,421 22,255 4.27 Loans receivable, net (3) Commercial 6,781,005 98,260 5.88 6,794,158 101,003 5.91 6,925,048 104,421 6.06 Residential real estate 3,065,679 31,270 4.08 3,049,092 30,455 4.00 2,974,468 28,596 3.85 Other consumer 228,553 3,489 6.19 236,161 3,980 6.70 248,396 4,104 6.65 Allowance for loan credit losses, net of deferred loan costs and fees (61,854) — — (60,669) — — (59,141) — — Loans receivable, net 10,013,383 133,019 5.37 10,018,742 135,438 5.38 10,088,771 137,121 5.46 Total interest-earning assets 12,112,028 153,703 5.13 12,331,483 159,620 5.15 12,350,384 161,602 5.26 Non-interest-earning assets 1,199,865 1,213,569 1,206,336 Total assets $13,311,893 $13,545,052 $13,556,720 Liabilities and Stockholders’ Equity: Interest-bearing liabilities: Interest-bearing checking $4,135,952 21,433 2.10% $4,050,428 22,750 2.23% $3,925,965 20,795 2.13%Money market 1,322,003 9,353 2.87 1,325,119 10,841 3.25 1,092,003 9,172 3.38 Savings 1,058,015 1,785 0.68 1,070,816 2,138 0.79 1,355,718 4,462 1.32 Time deposits 1,916,109 18,475 3.91 2,212,750 24,160 4.34 2,414,063 25,426 4.24 Total 8,432,079 51,046 2.46 8,659,113 59,889 2.75 8,787,749 59,855 2.74 FHLB Advances 996,293 11,359 4.62 854,748 10,030 4.67 644,818 7,771 4.85 Securities sold under agreements to repurchase 64,314 428 2.70 76,856 513 2.66 68,500 411 2.41 Other borrowings 283,150 4,218 6.04 396,412 5,859 5.88 500,901 7,341 5.89 Total borrowings 1,343,757 16,005 4.83 1,328,016 16,402 4.91 1,214,219 15,523 5.14 Total interest-bearing liabilities 9,775,836 67,051 2.78 9,987,129 76,291 3.04 10,001,968 75,378 3.03 Non-interest-bearing deposits 1,597,972 1,627,376 1,634,583 Non-interest-bearing liabilities 222,951 227,221 247,129 Total liabilities 11,596,759 11,841,726 11,883,680 Stockholders’ equity 1,715,134 1,703,326 1,673,040 Total liabilities and equity $13,311,893 $13,545,052 $13,556,720 Net interest income $86,652 $83,329 $86,224 Net interest rate spread (4) 2.35% 2.11% 2.23%Net interest margin (5) 2.90% 2.69% 2.81%Total cost of deposits (including non-interest-bearing deposits) 2.06% 2.32% 2.31% (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. OceanFirst Financial Corp.SELECTED QUARTERLY FINANCIAL DATA(in thousands, except per share amounts) March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Selected Financial Condition Data: Total assets $13,309,278 $13,421,247 $13,488,483 $13,321,755 $13,418,978 Debt securities available-for-sale, at estimated fair value 746,168 827,500 911,753 721,484 744,944 Debt securities held-to-maturity, net of allowance for securities credit losses 1,005,476 1,045,875 1,075,131 1,105,843 1,128,666 Equity investments 87,365 84,104 95,688 104,132 103,201 Restricted equity investments, at cost 102,172 108,634 98,545 92,679 85,689 Loans receivable, net of allowance for loan credit losses 10,058,072 10,055,429 9,963,598 9,961,117 10,068,209 Deposits 10,177,023 10,066,342 10,116,167 9,994,017 10,236,851 Federal Home Loan Bank advances 891,021 1,072,611 891,860 789,337 658,436 Securities sold under agreements to repurchase and other borrowings 262,940 258,113 501,090 504,490 492,520 Total stockholders’ equity 1,709,117 1,702,757 1,694,508 1,676,669 1,665,837 For the Three Months Ended, March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Selected Operating Data: Interest income $153,703 $159,620 $161,525 $159,426 $161,602 Interest expense 67,051 76,291 79,306 77,163 75,378 Net interest income 86,652 83,329 82,219 82,263 86,224 Provision for credit losses (excluding Spring Garden) 5,340 2,041 517 3,114 591 Spring Garden opening provision for credit losses — 1,426 — — — Net interest income after provision for credit losses 81,312 79,862 81,702 79,149 85,633 Other income (excluding equity investments and sale of trust) 11,048 12,237 11,826 10,098 9,201 Net gain (loss) on equity investments 205 (5) 1,420 887 1,923 Net gain on sale of trust business — — 1,438 — 1,162 Operating expenses (excluding FDIC special assessment and merger related expenses) 64,294 64,739 62,067 58,620 58,254 FDIC special assessment — — — — 418 Merger related expenses — 110 1,669 — — Income before provision for income taxes 28,271 27,245 32,650 31,514 39,247 Provision for income taxes 6,808 5,083 7,464 7,082 10,637 Net income 21,463 22,162 25,186 24,432 28,610 Net (loss) income attributable to non-controlling interest (46) 253 70 59 (57)Net income attributable to OceanFirst Financial Corp. $21,509 $21,909 $25,116 $24,373 $28,667 Net income available to common stockholders $20,505 $20,905 $24,112 $23,369 $27,663 Diluted earnings per share $0.35 $0.36 $0.42 $0.40 $0.47 Net accretion/amortization of purchase accounting adjustments included in net interest income $219 $20 $741 $1,086 $921 At or For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024Selected Financial Ratios and Other Data (1) (2): Performance Ratios (Annualized): Return on average assets (3) 0.62% 0.61% 0.71% 0.70% 0.82%Return on average tangible assets (3) (4) 0.65 0.64 0.74 0.73 0.85 Return on average stockholders’ equity (3) 4.85 4.88 5.68 5.61 6.65 Return on average tangible stockholders’ equity (3) (4) 7.05 7.12 8.16 8.10 9.61 Return on average tangible common equity (3) (4) 7.40 7.47 8.57 8.51 10.09 Stockholders’ equity to total assets 12.84 12.69 12.56 12.59 12.41 Tangible stockholders’ equity to tangible assets (4) 9.19 9.06 9.10 9.08 8.92 Tangible common equity to tangible assets (4) 8.76 8.62 8.68 8.64 8.49 Net interest rate spread 2.35 2.11 2.06 2.11 2.23 Net interest margin 2.90 2.69 2.67 2.71 2.81 Operating expenses to average assets 1.96 1.90 1.89 1.75 1.74 Efficiency ratio (5) 65.67 67.86 65.77 62.86 59.56 Loan-to-deposit ratio 99.50 100.50 99.10 100.30 98.90 At or For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Trust and Asset Management: Wealth assets under administration and management (“AUA/M”) $149,106 $147,956 $152,797 $150,519 $236,891 Nest Egg AUA/M 453,803 431,434 430,413 403,647 407,478 Total AUA/M 602,909 579,390 583,210 554,166 644,369 Per Share Data: Cash dividends per common share $0.20 $0.20 $0.20 $0.20 $0.20 Book value per common share at end of period 29.27 29.08 29.02 28.67 28.32 Tangible book value per common share at end of period (4) 19.16 18.98 19.28 18.93 18.63 Common shares outstanding at end of period 58,383,525 58,554,871 58,397,094 58,481,418 58,812,498 Preferred shares outstanding at end of period 57,370 57,370 57,370 57,370 57,370 Number of full-service customer facilities: 39 39 39 39 39 Quarterly Average Balances Total securities $2,003,206 $2,116,911 $2,063,633 $2,058,711 $2,098,421 Loans receivable, net 10,013,383 10,018,742 9,958,794 10,012,491 10,088,771 Total interest-earning assets 12,112,028 12,331,483 12,232,672 12,203,776 12,350,384 Total goodwill and intangibles 535,657 534,942 513,731 514,535 515,356 Total assets 13,311,893 13,545,052 13,438,696 13,441,218 13,556,720 Time deposits 1,916,109 2,212,750 2,339,370 2,337,458 2,414,063 Total deposits (including non-interest-bearing deposits) 10,030,051 10,286,489 10,175,856 10,173,315 10,422,332 Total borrowings 1,343,757 1,328,016 1,333,245 1,325,372 1,214,219 Total interest-bearing liabilities 9,775,836 9,987,129 9,874,358 9,872,522 10,001,968 Non-interest bearing deposits 1,597,972 1,627,376 1,634,743 1,626,165 1,634,583 Stockholders' equity 1,715,134 1,703,326 1,689,035 1,674,453 1,673,040 Tangible stockholders’ equity (4) 1,179,477 1,168,384 1,175,304 1,159,918 1,157,684 Quarterly Yields and Costs Total securities 3.99% 4.09% 4.23% 4.22% 4.27%Loans receivable, net 5.37 5.38 5.46 5.46 5.46 Total interest-earning assets 5.13 5.15 5.26 5.25 5.26 Time deposits 3.91 4.34 4.58 4.46 4.24 Total cost of deposits (including non-interest-bearing deposits) 2.06 2.32 2.44 2.37 2.31 Total borrowed funds 4.83 4.91 5.07 5.19 5.14 Total interest-bearing liabilities 2.78 3.04 3.20 3.14 3.03 Net interest spread 2.35 2.11 2.06 2.11 2.23 Net interest margin 2.90 2.69 2.67 2.71 2.81 (1)With the exception of end of quarter ratios, all ratios are based on average daily balances.(2)Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”(3)Ratios for each period are based on net income available to common stockholders.(4)Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”(5)Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income. OceanFirst Financial Corp.OTHER ITEMS(dollars in thousands, except per share amounts) NON-GAAP RECONCILIATION For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Core Earnings: Net income available to common stockholders (GAAP) $20,505 $20,905 $24,112 $23,369 $27,663 (Less) add non-recurring and non-core items: Spring Garden opening provision for credit losses — 1,426 — — — Net (gain) loss on equity investments (205) 5 (1,420) (887) (1,923)Net gain on sale of trust business — — (1,438) — (1,162)FDIC special assessment — — — — 418 Merger related expenses — 110 1,669 — — Income tax expense (benefit) on items 49 (388) 270 188 642 Core earnings (Non-GAAP) $20,349 $22,058 $23,193 $22,670 $25,638 Income tax expense $6,808 $5,083 $7,464 $7,082 $10,637 Provision for credit losses 5,340 3,467 517 3,114 591 Less: non-core provision for credit losses — 1,426 — — — Less: income tax expense (benefit) on non-core items 49 (388) 270 188 642 Core earnings PTPP (Non-GAAP) $32,448 $29,570 $30,904 $32,678 $36,224 Core earnings diluted earnings per share $0.35 $0.38 $0.39 $0.39 $0.44 Core earnings PTPP diluted earnings per share $0.56 $0.51 $0.53 $0.56 $0.62 Core Ratios (Annualized): Return on average assets 0.62% 0.65% 0.69% 0.68% 0.76%Return on average tangible stockholders’ equity 7.00 7.51 7.85 7.86 8.91 Return on average tangible common equity 7.34 7.89 8.24 8.26 9.36 Efficiency ratio 65.81 67.74 66.00 63.47 61.05 March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Tangible Equity: Total stockholders' equity $1,709,117 $1,702,757 $1,694,508 $1,676,669 $1,665,837 Less: Goodwill 523,308 523,308 506,146 506,146 506,146 Intangibles 11,740 12,680 7,056 7,859 8,669 Tangible stockholders' equity 1,174,069 1,166,769 1,181,306 1,162,664 1,151,022 Less: Preferred stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity $1,118,542 $1,111,242 $1,125,779 $1,107,137 $1,095,495 Tangible Assets: Total assets $13,309,278 $13,421,247 $13,488,483 $13,321,755 $13,418,978 Less: Goodwill 523,308 523,308 506,146 506,146 506,146 Intangibles 11,740 12,680 7,056 7,859 8,669 Tangible assets $12,774,230 $12,885,259 $12,975,281 $12,807,750 $12,904,163 Tangible stockholders' equity to tangible assets 9.19% 9.06% 9.10% 9.08% 8.92%Tangible common equity to tangible assets 8.76% 8.62% 8.68% 8.64% 8.49% Company Contact: Patrick S. BarrettChief Financial OfficerOceanFirst Financial Corp. Tel: (732) 240-4500, ext. 27507Email: pbarrett@oceanfirst.com

OceanFirst Financial Corp. Announces First Quarter Financial Results

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