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Press Release
Exhibit 99.1
Company Contact:                                        
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 7507
Email: pbarrett@oceanfirst.com


FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS
    RED BANK, NEW JERSEY, October 24, 2022 - 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 $37.6 million, or $0.64 per diluted share, for the three months ended September 30, 2022, as compared to $28.0 million, or $0.47 per diluted share, for the prior linked quarter, and $23.2 million, or $0.39 per diluted share, for the corresponding prior year period. For the nine months ended September 30, 2022, the Company reported net income available to common stockholders of $90.3 million, or $1.53 per diluted share, as compared to $84.4 million, or $1.41 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Nine Months Ended,
Performance Ratios (Annualized):September 30,June 30,September 30,September 30,September 30,
20222022202120222021
Return on average assets 1.19 %0.92 %0.78 %0.99 %0.98 %
Return on average stockholders’ equity9.68 7.31 6.05 7.87 7.49 
Return on average tangible stockholders’ equity (a)
14.62 11.08 9.20 11.91 11.46 
Efficiency ratio53.10 59.65 67.43 57.90 60.62 
Net interest margin3.36 3.29 2.93 3.28 2.91 
(a) Return on average tangible stockholders’ equity, a non-GAAP (“generally accepted accounting principles”) financial measure, excludes the impact of intangible assets and goodwill from both assets and stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.



Core earnings1 for the three and nine months ended September 30, 2022 amounted to $35.0 million and $98.4 million, respectively, or $0.60 and $1.67 per diluted share, an increase from core earnings of $26.7 million and $82.7 million, or $0.45 and $1.38 per diluted share, for the corresponding prior year periods. Non-core operations, net of tax, had a favorable impact of $2.6 million, and an adverse impact of $8.1 million, for the three and nine months ended September 30, 2022, respectively. Non-core operations, net of tax, had an adverse impact of $3.6 million, and a favorable impact of $1.7 million, for the three and nine months ended September 30, 2021, respectively.
Core earnings for the three months ended September 30, 2022 increased $376,000 from $34.6 million, or $0.59 per diluted share, for the prior linked quarter. Non-core operations, net of tax, had an adverse impact of $6.7 million for the prior linked quarter.
Core earnings PTPP for the three and nine months ended September 30, 2022 were $47.5 million and $134.2 million, respectively, or $0.81 and $2.28 per diluted share, respectively. Selected performance metrics are as follows:
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
Core Ratios1 (Annualized):
20222022202120222021
Return on average assets 1.11 %1.13 %0.90 %1.08 %0.95 %
Return on average tangible stockholders’ equity13.62 13.73 10.62 12.98 11.23 
Efficiency ratio54.80 54.43 62.22 55.51 60.23 
Core diluted earnings per share$0.60 $0.59 $0.45 $1.67 $1.38 
Core PTPP diluted earnings per share 0.81 0.80 0.54 2.28 1.67 

1 Core earnings and core earnings before income taxes and credit loss provision (“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 (benefit) expense, net loss (gain) on equity investments, 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 credit loss provision (benefit). 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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Key developments for the recent quarter are described below:
•Strengthening Net Interest Income and Margin: Net interest income increased by $5.2 million to $96.0 million, from $90.8 million in the prior linked quarter. Net interest margin increased to 3.36%, as compared to 3.29% in the prior linked quarter, largely driven by the impact of the rising rate environment on interest earning assets, and to a lesser extent an increase in loan balances, partly offset by an increased cost of funds and lower prepayment fees.
•Loan and Deposit Growth: Loan growth for the quarter was $293.9 million, reflecting originations of $543.8 million. The committed loan pipeline increased to $439.5 million as of September 30, 2022. Deposits grew by $128.0 million for the quarter and $226.7 million year-to-date.
•Interchange Fees: Effective July 1, 2022, the Bank became subject to the Durbin amendment, as contained in the Dodd-Frank Act, which imposes limitations on debit card interchange fees collected by banks with assets of $10 billion or more. As a result, bankcard services revenue was adversely impacted by $1.7 million. The Company is strategically positioned to absorb the decreased fee income and continue to grow earnings.
•Partners Bancorp Acquisition: The Company continues to work towards regulatory approval for the Partners Bancorp (“Partners”) acquisition. The one-year anniversary of the agreement to acquire Partners is November 4, 2022. If the transaction is not completed by that date, either party may (but is not obligated to) terminate the agreement without penalty.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our Company delivered another quarter of strong financial performance driven by expansion of net interest income and margin, continued organic loan and deposit growth, and disciplined expense
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management.” Mr. Maher added, “In addition to financial performance, I’m proud of our team’s continuing efforts to support our community. On October 6th, approximately 750 employees participated in our inaugural CommunityFirst day, providing service to over 100 different non-profits in the five primary states that OceanFirst serves.”
The Company’s Board of Directors declared its 103rd consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on November 18, 2022 to common stockholders of record on November 7, 2022. The Board 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 November 15, 2022 to preferred stockholders of record on October 31, 2022.
Results of Operations
On April 1, 2022, the Company completed its acquisition of a majority interest in Trident Abstract Title Agency, LLC (“Trident”) and its results of operations are included in the consolidated results for the three and nine months ended September 30, 2022, but are excluded from the results of operations for the period from January 1, 2021 to March 31, 2022. Refer to “Supplemental Information on Trident” for the impact of Trident on the Company’s consolidated results.
Net Interest Income and Margin
Net interest income for the three and nine months ended September 30, 2022 increased to $96.0 million and $271.0 million, respectively, as compared to $77.1 million and $224.8 million for the corresponding prior year periods, reflecting an increase in average interest-earning assets and net interest margin.
Net interest margin for the three and nine months ended September 30, 2022 increased to 3.36% and 3.28%, respectively, from 2.93% and 2.91% for the same prior year periods. Excluding the impact of purchase accounting accretion and prepayment fees of 0.08% and 0.18% for the three months ended September 30, 2022 and 2021, respectively, net interest margin increased to 3.28% from 2.75%.
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Excluding the impact of purchase accounting accretion and prepayment fees of 0.13% and 0.17% for the nine months ended September 30, 2022 and 2021, respectively, net interest margin increased to 3.15% from 2.74%. Net interest margin for both the three and nine months ended September 30, 2022 were positively impacted by the redeployment of excess cash into loans and the impact of the rising rate environment on interest earning assets, partly offset by an increased cost of funds and the growth in interest-bearing liabilities balances.
Average interest-earning assets increased by $865.6 million and $739.5 million for the three and nine months ended September 30, 2022, respectively, as compared to the same prior year periods, primarily due to loan and securities growth funded by the redeployment of excess cash. Average loans receivable, net of allowance for loan credit losses, increased by $1.65 billion and $1.38 billion for the three and nine months ended September 30, 2022, respectively, as compared to the same prior year periods.
For the three months ended September 30, 2022, the cost of average interest-bearing liabilities increased to 0.69% from 0.44% for the corresponding prior year period, as a result of higher costs associated with Federal Home Loan Bank (“FHLB”) advances and time deposits issued in an elevated rate environment in 2022. The total cost of deposits (including non-interest bearing deposits) was 0.36% for the three months ended September 30, 2022, as compared to 0.22% for the same prior year period.
For the nine months ended September 30, 2022, the cost of average interest-bearing liabilities decreased to 0.49% from 0.52% for the corresponding prior year period, as a result of downward repricing of deposits that began in the prior year and continued through the current year, partly offset by the recent pace of the rising rate environment in the current quarter and increased funding costs on
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FHLB advances. The total cost of deposits (including non-interest bearing deposits) was 0.24% for the nine months ended September 30, 2022, as compared to 0.28% for the same prior year period.
Net interest income for the three months ended September 30, 2022 increased by $5.2 million, as compared to the prior linked quarter, reflecting an increase in net interest margin to 3.36%, as compared to 3.29% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees of 0.08% and 0.17% for the three months ended September 30, 2022 and June 30, 2022, respectively, net interest margin increased to 3.28%, from 3.12%. The expansion in net interest margin was primarily attributable to the impact of the rising rate environment on interest earning assets and to a lesser extent loan growth, partly offset by increased costs of funds. Average interest-earning assets increased by $242.9 million for the quarter ended September 30, 2022, as compared to the prior linked quarter, primarily due to loan growth. The yield on average interest-earning assets increased to 3.88% for the three months ended September 30, 2022, from 3.60% in the prior linked quarter. The total cost of average interest-bearing liabilities was 0.69% for the three months ended September 30, 2022, as compared to 0.42% in the prior linked quarter, primarily due to the impact of brokered deposits issued in the prior linked quarter and increased rates on FHLB advances.
Credit Loss Expense (Benefit)
    Credit loss expense for the three and nine months ended September 30, 2022 was $1.0 million and $4.1 million, respectively, as compared to a credit loss benefit of $3.2 million and $10.3 million for the corresponding prior year periods, and a credit loss expense of $1.3 million in the prior linked quarter. The credit loss expense for the three and nine months ended September 30, 2022 was influenced by loan growth, slowing prepayment rates, and increasingly uncertain macro-economic forecasts due to rising interest rates, inflation, and global economic headwinds, partly offset by positive trends in the Company’s criticized and classified assets.
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Net loan recoveries were $252,000 and $386,000 for the three months ended September 30, 2022 and 2021, respectively. Net loan recoveries were $335,000 and $442,000 for the nine months ended September 30, 2022 and 2021, respectively. Net loan charge-offs were $9,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.
Non-interest Income
    For the three months ended September 30, 2022, other income increased to $15.2 million, as compared to $9.9 million for the corresponding prior year period. For the nine months ended September 30, 2022, other income decreased to $31.5 million, as compared to $42.5 million for the corresponding prior year period.
Other income for the three and nine months ended September 30, 2022 was impacted by non-core operations of $3.4 million related to gains on equity investments and $7.5 million related to net losses on equity investments, respectively. The nine months ended September 30, 2022 included $11.3 million of net unrealized losses, mostly on preferred stock equity investments, primarily due to the impact of the rising interest rate environment. The preferred stock equity investments carry a weighted average yield of 5.1% and an amortized cost of $73.3 million at September 30, 2022. Other income for the three and nine months ended September 30, 2021 was impacted by non-core operations of $466,000 related to net losses on equity investments and $8.4 million related to net gains on equity investments, respectively.
Excluding non-core operations noted above, other income increased by $1.4 million for the three months ended September 30, 2022, as compared to the corresponding prior year period. This increase was primarily due to the acquisition of a majority interest in Trident, which added $3.3 million of title-related fees and service charges. This increase was partly offset by a decrease in income from bankcard services of $1.9 million, primarily as a result of the Durbin amendment, which became effective for the Company on July 1, 2022.
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Excluding non-core operations noted above, other income increased by $4.9 million for the nine months ended September 30, 2022, as compared to the corresponding prior year period. The increase was primarily due to the impact of Trident, which added $7.8 million of title-related fees and services charges, and an increase in commercial loan swap income of $3.8 million. These increases were partly offset by decreases in net gain on sale of loans of $2.8 million, income from bankcard services of $2.3 million primarily as a result of the Durbin amendment, fees and service charges of $849,000, and Paycheck Protection Program (“PPP”) loan origination referral fees of $800,000.
Excluding non-core operations of $8.1 million related to net losses on equity investments in the prior linked quarter, other income for the three months ended September 30, 2022 decreased by $3.8 million, primarily due to decreases in income from bankcard services of $1.8 million primarily as a result of the Durbin amendment, fees and service charges of $1.3 million due to seasonality and market conditions impacting Trident’s performance, and commercial loan swap income of $823,000.
Non-interest Expense
    Operating expenses increased to $59.0 million and $175.2 million for the three and nine months ended September 30, 2022, respectively, as compared to $58.7 million and $162.0 million for the same prior year periods. Operating expenses for the three and nine months ended September 30, 2022 were favorably impacted by $48,000 and adversely impacted by $3.1 million of non-core operations, respectively. Operating expenses were adversely impacted by non-core operations for the three and nine months ended September 30, 2021 of $4.2 million and $6.1 million, respectively.
Excluding non-core operations, operating expenses increased by $4.6 million for the three months ended September 30, 2022, as compared to the corresponding prior year period. This increase was partly due to the acquisition of a majority interest in Trident, which added $2.8 million of expenses for the three months ended September 30, 2022, and increases, excluding Trident, in compensation and benefits expense of $1.8 million primarily related to increased employee medical benefit claims, and
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data processing expense of $1.2 million, as a result of the migration to a new core banking system. These increases were partly offset by a decrease in professional fees of $615,000.
Excluding non-core operations, operating expenses increased by $16.2 million for the nine months ended September 30, 2022, as compared to the corresponding prior year period. This increase was partly due to the impact of Trident, which added $6.0 million of expenses and increases, excluding Trident, in compensation and benefits expense of $5.3 million partly relating to the commercial banking strategy and commercial banking hires in expansion markets of Boston and Baltimore, data processing expense of $4.6 million as a result of the migration to a new core banking system, and federal deposit insurance and regulatory assessments of $1.0 million as a result of a higher assessment base and multiplier. These increases were partly offset by a decrease in amortization of core deposit intangible by $551,000.
Excluding non-core operations, operating expenses for the three months ended September 30, 2022 increased $1.1 million as compared to the prior linked quarter, primarily due to increases in compensation and benefits of $971,000, primarily related to increased employee medical benefit claims, and occupancy expense of $530,000.
Income Tax Expense
The provision for income taxes was $12.3 million and $29.2 million for the three and nine months ended September 30, 2022, respectively, as compared to $7.4 million and $28.1 million for the same prior year periods, and $8.9 million for the prior linked quarter. The effective tax rate was 24.1% and 23.7% for the three and nine months ended September 30, 2022, respectively, as compared to 23.3% and 24.3% for the same prior year periods, respectively, and 23.3% for the prior linked quarter.
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Financial Condition
    Total assets increased by $943.8 million to $12.68 billion at September 30, 2022, from $11.74 billion at December 31, 2021. Total loans increased by $1.10 billion to $9.72 billion at September 30, 2022, from $8.62 billion at December 31, 2021, due to strong loan originations. Total debt securities decreased by $209.4 million at September 30, 2022, as compared to December 31, 2021, primarily due to principal repayments and maturities, and to a lesser extent, an increase in unrealized losses driven by the rising rate environment. Other assets increased by $81.1 million to $228.1 million at September 30, 2022 from $147.0 million at December 31, 2021, primarily due to an increase in market values associated with customer interest rate swap programs.
    Total liabilities increased by $920.2 million to $11.14 billion at September 30, 2022, from $10.22 billion at December 31, 2021. Deposits increased by $226.7 million to $9.96 billion at September 30, 2022, from $9.73 billion at December 31, 2021. Total deposits, excluding time deposits, decreased by $402.7 million to $8.56 billion at September 30, 2022, from $8.96 billion at December 31, 2021, due to the net runoff of interest-bearing checking balances. Time deposits increased to $1.40 billion at September 30, 2022, from $775.0 million at December 31, 2021, primarily due to an increase in brokered time deposits. The loans-to-deposit ratio at September 30, 2022 was 97.6%, as compared to 88.6% at December 31, 2021.
FHLB advances increased to $514.2 million at September 30, 2022 from $0 at December 31, 2021 to fund liquidity needs. Other borrowings decreased by $34.2 million to $194.9 million at September 30, 2022, from $229.1 million at December 31, 2021, primarily due to the extinguishment of $35.0 million of subordinated debt in March 2022. Other liabilities increased by $230.9 million to $352.9 million at September 30, 2022, from $122.0 million at December 31, 2021, primarily due to an increase in the market values associated with customer interest rate swap programs and related collateral received from counterparties.
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    Stockholders’ equity increased to $1.54 billion at September 30, 2022, as compared to $1.52 billion at December 31, 2021. Accumulated other comprehensive loss increased by $35.7 million to $38.5 million at September 30, 2022 from $2.8 million at December 31, 2021, primarily due to unrealized losses on debt securities available-for-sale which were adversely impacted by the rising interest rate environment. For the nine months ended September 30, 2022, the Company repurchased 373,223 shares totaling $7.4 million under its stock repurchase program at a weighted average cost of $19.82. There were 2,934,438 shares available for repurchase at September 30, 2022 under the existing repurchase program. Stockholders’ equity per common share increased to $26.04 at September 30, 2022, as compared to $25.63 at December 31, 2021. Tangible common equity per common share2 increased to $16.30 at September 30, 2022, as compared to $15.93 at December 31, 2021.
Asset Quality
    The Company’s non-performing loans decreased to $21.5 million at September 30, 2022, as compared to $25.5 million at December 31, 2021. The Company’s non-performing loans, excluding $3.0 million and $6.5 million of non-performing purchased with credit deterioration (“PCD”) loans from prior bank acquisitions at September 30, 2022 and December 31, 2021, respectively, decreased to $18.5 million at September 30, 2022, as compared to $18.9 million at December 31, 2021. The allowance for loan credit losses as a percentage of total non-performing loans was 248.96% at September 30, 2022, as compared to 191.61% at December 31, 2021. The allowance for loan credit losses as a percentage of total non-performing loans, excluding PCD loans, was 290.01% at September 30, 2022, as compared to 257.81% at December 31, 2021. The level of 30 to 89 days delinquent loans improved to $11.8 million at September 30, 2022, from $14.5 million at December 31, 2021. The level of 30 to 89 days delinquent loans, excluding non-performing and PCD loans, improved to $10.4 million at September 30, 2022, from $13.5 million at December 31, 2021.
2 Tangible common equity per common share, a non-GAAP financial measure, excludes the impact of intangible assets, goodwill, and preferred equity from stockholders’ equity. 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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The Company’s allowance for loan credit losses was 0.55% of total loans at September 30, 2022, as compared to 0.57% at December 31, 2021. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $67.1 million, or 0.69% of total loans, at September 30, 2022, as compared to $67.8 million, or 0.79% of total loans at December 31, 2021.


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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 credit loss provision, and reporting equity and asset amounts excluding intangible assets and goodwill, which can vary from period to period, provides a better comparison of period-to-period operating performance. In addition, a non-GAAP table has been presented excluding the results associated with the acquisition of a majority interest in Trident for better comparison period over period. 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 Tuesday, October 25, 2022 at 11:00 a.m. Eastern Time. The direct dial number for the call is (844) 200-6205, using the access code 225620. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 477430, from one hour after the end of the call until January 26, 2023. 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 $12.7 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. 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: management plans relating to the proposed transaction with Partners Bancorp (the “Transaction”); the ability to complete the Transaction; the ability to obtain any regulatory, stockholder or other approvals, authorizations or consents; the expected timing of the completion of the Transaction; any statements of the plans and objectives of management for future operations, products or services, including the execution of integration plans relating to the Transaction; the impact of the COVID-19 or any other pandemic on our operations and financial results and those of our customers, changes in interest rates, inflation, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and 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, competition, demand for financial services in the Company’s market area, accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks; and guidelines 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, 2021, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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

September 30,June 30,December 31,September 30,
2022202220212021
(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and due from banks$170,668 $189,019 $204,949 $981,126 
Debt securities available-for-sale, at estimated fair value470,300 507,276 568,255 314,620 
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,234 at September 30, 2022, $1,293 at June 30, 2022, $1,467 at December 31, 2021, and $1,503 at September 30, 2021 (estimated fair value of $905,426 at September 30, 2022, $987,532 at June 30, 2022, $1,152,744 at December 31, 2021 and $1,143,381 at September 30, 2021)
1,027,712 1,068,034 1,139,193 1,125,382 
Equity investments81,722 75,269 101,155 101,314 
Restricted equity investments, at cost77,556 76,047 53,195 53,017 
Loans receivable, net of allowance for loan credit losses of $53,521 at September 30, 2022, $52,061 at June 30, 2022, $48,850 at December 31, 2021 and $50,153 at September 30, 2021
9,672,488 9,380,688 8,583,352 8,139,961 
Loans held-for-sale3,549 — — 13,428 
Interest and dividends receivable38,388 34,184 32,606 32,512 
Other real estate owned— — 106 106 
Premises and equipment, net127,868 128,118 125,828 123,669 
Bank owned life insurance261,118 260,230 259,207 260,072 
Assets held for sale3,216 4,263 6,229 4,613 
Goodwill506,146 506,146 500,319 500,319 
Core deposit intangible14,656 15,827 18,215 19,558 
Other assets228,066 193,552 147,007 159,991 
Total assets$12,683,453 $12,438,653 $11,739,616 $11,829,688 
Liabilities and Stockholders’ Equity
Deposits$9,959,469 $9,831,484 $9,732,816 $9,774,097 
Federal Home Loan Bank advances514,200 488,750 — — 
Securities sold under agreements to repurchase with customers96,289 105,495 118,769 143,292 
Other borrowings194,914 194,654 229,141 228,887 
Advances by borrowers for taxes and insurance25,457 23,640 20,305 22,214 
Other liabilities352,908 273,198 122,032 147,949 
Total liabilities11,143,237 10,917,221 10,223,063 10,316,439 
OceanFirst Financial Corp. stockholders’ equity1,539,253 1,520,488 1,516,553 1,513,249 
Non-controlling interest963 944 — — 
Total stockholders’ equity1,540,216 1,521,432 1,516,553 1,513,249 
Total liabilities and stockholders’ equity$12,683,453 $12,438,653 $11,739,616 $11,829,688 













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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
20222022202120222021
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$100,141 $90,731 $78,889 $273,340 $233,845 
Debt securities8,479 7,473 5,040 23,456 16,379 
Equity investments and other1,879 1,212 1,491 4,102 3,411 
Total interest income110,499 99,416 85,420 300,898 253,635 
Interest expense:
Deposits9,238 4,317 5,379 17,596 20,200 
Borrowed funds5,296 4,302 2,909 12,313 8,683 
Total interest expense14,534 8,619 8,288 29,909 28,883 
Net interest income95,965 90,797 77,132 270,989 224,752 
Credit loss expense (benefit) 1,016 1,254 (3,179)4,121 (10,259)
Net interest income after credit loss expense (benefit) 94,949 89,543 80,311 266,868 235,011 
Other income:
Bankcard services revenue1,509 3,310 3,409 7,782 10,052 
Trust and asset management revenue568 658 584 1,835 1,774 
Fees and service charges6,320 7,646 2,973 17,026 10,519 
Net gain (loss) on sales of loans168 3 (15)348 3,180 
Net gain (loss) on equity investments3,362 (8,078)(466)(7,502)8,397 
Net gain (loss) from other real estate operations— 50 (3)48 (12)
Income from bank owned life insurance1,356 1,422 1,640 4,881 4,771 
Commercial loan swap income1,471 2,294 1,588 6,546 2,772 
Other396 236 173 579 1,068 
Total other income15,150 7,541 9,883 31,543 42,521 
Operating expenses:
Compensation and employee benefits34,124 33,153 30,730 97,972 89,008 
Occupancy5,288 4,758 5,005 15,790 15,380 
Equipment1,150 1,336 1,124 3,856 4,008 
Marketing655 971 496 2,242 1,555 
Federal deposit insurance and regulatory assessments1,757 1,788 1,459 5,435 4,422 
Data processing6,560 6,170 5,363 18,466 13,796 
Check card processing1,231 1,515 1,337 3,728 4,012 
Professional fees2,502 2,472 3,089 8,296 8,317 
Amortization of core deposit intangible1,171 1,178 1,354 3,559 4,110 
Branch consolidation (benefit) expense, net(346)546 4,014 602 5,051 
Merger related expenses298 196 225 2,459 1,052 
Other operating expense4,607 4,578 4,477 12,748 11,315 
Total operating expenses58,997 58,661 58,673 175,153 162,026 
Income before provision for income taxes51,102 38,423 31,521 123,258 115,506 
Provision for income taxes12,298 8,940 7,354 29,212 28,087 
Net income38,804 29,483 24,167 94,046 87,419 
Net income attributable to non-controlling interest193 522 — 715 — 
Net income attributable to OceanFirst Financial Corp.38,611 28,961 24,167 93,331 87,419 
Dividends on preferred shares1,004 1,004 1,004 3,012 3,012 
Net income available to common stockholders$37,607 $27,957 $23,163 $90,319 $84,407 
Basic earnings per share$0.64 $0.48 $0.40 $1.54 $1.42 
Diluted earnings per share$0.64 $0.47 $0.39 $1.53 $1.41 
Average basic shares outstanding58,681 58,894 59,311 58,777 59,619 
Average diluted shares outstanding58,801 58,995 59,515 58,918 59,862 
16

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Commercial:
Commercial real estate - investor$5,007,637 $4,808,965 $4,607,880 $4,378,061 $3,922,983 
Commercial real estate - owner-occupied983,784 1,020,873 1,057,246 1,055,065 1,123,973 
Commercial and industrial652,620 584,464 502,739 449,224 457,674 
Total commercial6,644,041 6,414,302 6,167,865 5,882,350 5,504,630 
Consumer:
Residential real estate2,813,209 2,758,269 2,687,927 2,479,701 2,401,240 
Home equity loans and lines and other consumer ("other consumer")261,510 252,314 253,184 260,819 275,962 
Total consumer3,074,719 3,010,583 2,941,111 2,740,520 2,677,202 
Total loans9,718,760 9,424,885 9,108,976 8,622,870 8,181,832 
Deferred origination costs (fees), net7,249 7,864 7,301 9,332 8,282 
Allowance for loan credit losses(53,521)(52,061)(50,598)(48,850)(50,153)
Loans receivable, net$9,672,488 $9,380,688 $9,065,679 $8,583,352 $8,139,961 
Mortgage loans serviced for others$53,869 $56,045 $58,089 $60,447 $64,840 
At September 30, 2022 Average Yield
Loan pipeline (1):
Commercial5.21 %$339,487 $273,843 $385,986 $539,426 $482,942 
Residential real estate5.20 80,591 104,920 116,554 123,211 160,070 
Other consumer5.24 19,395 6,278 12,814 8,381 8,420 
Total5.21 %$439,473 $385,041 $515,354 $671,018 $651,432 
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Average Yield
Loan originations:
Commercial5.11 %$356,726 $645,863 $816,517 $780,464 $585,667 
Residential real estate4.72 129,808 173,365 192,721 
(2)
195,942 
(2)
174,365 
(2)
Other consumer3.90 57,254 16,253 12,718 12,552 11,782 
Total4.89 %$543,788 $835,481 $1,021,956 $988,958 $771,814 
Loans sold$9,425 
(3)
$— $703 
(4)
$649 $1,756 
(1)Loan pipeline includes loans approved but not funded.
(2)Excludes residential real estate loan pool purchases of $161.7 million, $82.2 million and $219.7 million for the three months ended March 31, 2022, December 31, 2021 and September 30, 2021, respectively.
(3)Excludes the sale of a small business administration loan of $1.2 million for the three months ended September 30, 2022    
(4)Excludes the sale of higher risk commercial loans of $12.0 million for the three months ended March 31, 2022.
DEPOSITSAt
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Type of Account
Non-interest-bearing$2,325,547 $2,312,126 $2,444,833 $2,412,056 $2,467,952 
Interest-bearing checking3,909,864 3,696,067 4,287,745 4,201,736 4,013,565 
Money market749,229 716,782 811,588 736,090 816,691 
Savings1,570,472 1,606,534 1,624,751 1,607,933 1,620,447 
Time deposits1,404,357 1,499,975 887,316 775,001 855,442 
  Total deposits$9,959,469 $9,831,484 $10,056,233 $9,732,816 $9,774,097 


17


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITYSeptember 30,June 30,March 31,December 31,September 30,
20222022202220212021
Non-performing loans:
Commercial real estate - investor$9,866 $2,609 $3,575 $3,614 $8,506 
Commercial real estate - owner-occupied1,976 8,233 9,632 11,904 12,524 
Commercial and industrial321 364 2,830 277 418 
Residential real estate5,958 5,846 7,047 6,114 5,505 
Other consumer3,377 3,701 3,841 3,585 3,351 
Total non-performing loans21,498 20,753 26,925 25,494 30,304 
Other real estate owned— — 106 106 106 
Total non-performing assets$21,498 $20,753 $27,031 $25,600 $30,410 
Delinquent loans 30 to 89 days$11,846 $9,558 $18,691 $14,546 $7,840 
Troubled debt restructuring (“TDR”):
Non-performing (included in total non-performing loans above)$10,047 $10,493 $11,914 $11,311 $9,962 
Performing6,065 6,946 7,716 12,320 9,661 
Total TDRs$16,112 $17,439 $19,630 $23,631 $19,623 
Allowance for loan credit losses$53,521 $52,061 $50,598 $48,850 $50,153 
Allowance for loan credit losses as a percent of total loans receivable (1)
0.55 %0.55 %0.56 %0.57 %0.61 %
Allowance for loan credit losses as a percent of total non-performing loans (1)
248.96 250.86 187.92 191.61 165.50 
Non-performing loans as a percent of total loans receivable0.22 0.22 0.30 0.30 0.37 
Non-performing assets as a percent of total assets0.17 0.17 0.22 0.22 0.26 
PCD loans
PCD loans, net of allowance for loan credit losses$29,249 $35,227 $37,032 $41,817 $41,372 
Non-performing PCD loans3,043 3,529 3,745 6,546 6,960 
Delinquent PCD and non-performing loans 30 to 89 days1,434 1,381 2,749 1,000 1,193 
TDR PCD loans715 997 1,033 337 345 
Asset quality, excluding PCD loans (2)
Non-performing loans18,455 17,224 23,180 18,948 23,344 
Non-performing assets18,455 17,224 23,286 19,054 23,450 
Delinquent loans 30 to 89 days (excludes non-performing loans)
10,412 8,177 15,942 13,546 6,647 
TDRs
15,397 16,442 18,597 23,294 19,278 
Allowance for loan credit losses as a percent of total non-performing loans (1)
290.01 %302.26 %218.28 %257.81 %214.84 %
Non-performing loans as a percent of total loans receivable
0.19 0.18 0.25 0.22 0.29 
Non-performing assets as a percent of total assets0.15 0.14 0.19 0.16 0.20 
(1)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 $13.6 million, $15.5 million, $16.9 million, $18.9 million and $21.3 million at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.
(2)All balances and ratios exclude PCD loans.











18

(continued)

NET LOAN RECOVERIES (CHARGE-OFFS)For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Net loan recoveries (charge-offs):
Loan charge-offs$(5)$(287)$(143)$(92)$(163)
Recoveries on loans257 278 235 111 549 
Net loan recoveries (charge-offs) $252 

$(9)$92 $19 $386 
Net loan recoveries (charge-offs) to average total loans (annualized)NM*— %NM*NM*NM*
Net loan recoveries (charge-offs) detail:
Commercial$117 $154 $25 $(24)$(33)
Residential real estate44 (47)94 21 280 
Other consumer91 (116)(27)22 139 
Net loan recoveries (charge-offs) $252 $(9)$92 $19 $386 
* Not meaningful as amounts are net loan recoveries.



19

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
September 30,June 30,September 30,
202220222021
(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$65,648 $336 2.03 %$67,440 $100 0.59 %$1,053,797 $441 0.17 %
Securities (2)
1,748,687 10,022 2.27 1,811,869 8,585 1.90 1,542,630 6,090 1.57 
Loans receivable, net (3)
Commercial6,509,515 74,309 4.53 6,278,465 65,390 4.18 5,361,472 55,387 4.10 
Residential real estate2,791,067 22,818 3.27 2,718,787 22,742 3.35 2,260,673 20,076 3.55 
Other consumer256,638 3,014 4.66 251,014 2,599 4.15 289,011 3,426 4.70 
Allowance for loan credit losses, net of deferred loan costs and fees(44,773)— — (43,683)— — (46,436)— — 
Loans receivable, net9,512,447 100,141 4.18 9,204,583 90,731 3.95 7,864,720 78,889 3.98 
Total interest-earning assets11,326,782 110,499 3.88 11,083,892 99,416 3.60 10,461,147 85,420 3.24 
Non-interest-earning assets1,191,173 1,168,093 1,276,890 
Total assets$12,517,955 $12,251,985 $11,738,037 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,873,968 2,671 0.27 %$4,020,474 1,612 0.16 %$3,841,475 2,854 0.29 %
Money market793,230 721 0.36 739,647 279 0.15 767,854 245 0.13 
Savings1,603,147 187 0.05 1,639,568 161 0.04 1,609,197 146 0.04 
Time deposits1,467,297 5,659 1.53 937,387 2,265 0.97 904,384 2,134 0.94 
Total7,737,642 9,238 0.47 7,337,076 4,317 0.24 7,122,910 5,379 0.30 
FHLB Advances352,392 2,208 2.49 538,754 1,647 1.23 — — — 
Securities sold under agreements to repurchase96,147 35 0.14 103,929 41 0.16 142,494 51 0.14 
Other borrowings194,755 3,053 6.22 194,481 2,614 5.39 228,695 2,858 4.96 
Total borrowings643,294 5,296 3.27 837,164 4,302 2.06 371,189 2,909 3.11 
Total interest-bearing liabilities8,380,936 14,534 0.69 8,174,240 8,619 0.42 7,494,099 8,288 0.44 
Non-interest-bearing deposits2,328,700 2,328,124 2,576,123 
Non-interest-bearing liabilities266,564 214,900 148,327 
Total liabilities10,976,200 10,717,264 10,218,549 
Stockholders’ equity
1,541,755 1,534,721 1,519,488 
Total liabilities and equity$12,517,955 $12,251,985 $11,738,037 
Net interest income$95,965 $90,797 $77,132 
Net interest rate spread (4)
3.19 %3.18 %2.80 %
Net interest margin (5)
3.36 %3.29 %2.93 %
Total cost of deposits (including non-interest-bearing deposits)
0.36 %0.18 %0.22 %





20

(continued)
For the Nine Months Ended September 30,
 20222021
(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$73,886 $472 0.85 %$1,061,419 $958 0.12 %
Securities (2)
1,801,978 27,086 2.01 1,452,778 18,832 1.73 
Loans receivable, net (3)
Commercial6,275,836 198,054 4.22 5,270,138 163,315 4.14 
Residential real estate2,685,080 66,899 3.32 2,269,066 59,242 3.48 
Other consumer254,891 8,387 4.40 306,681 11,288 4.92 
Allowance for loan credit losses, net of deferred loan costs and fees(42,987)— — (50,912)— — 
Loans receivable, net9,172,820 273,340 3.98 7,794,973 233,845 4.01 
Total interest-earning assets11,048,684 300,898 3.64 10,309,170 253,635 3.29 
Non-interest-earning assets1,191,358 1,264,347 
Total assets$12,240,042 $11,573,517 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$4,088,759 6,433 0.21 %$3,753,457 10,549 0.38 %
Money market773,666 1,317 0.23 761,975 823 0.14 
Savings1,617,354 473 0.04 1,571,345 490 0.04 
Time deposits1,060,027 9,373 1.18 1,041,371 8,338 1.07 
Total7,539,806 17,596 0.31 7,128,148 20,200 0.38 
FHLB Advances308,043 3,890 1.69 — — — 
Securities sold under agreements to repurchase105,821 117 0.15 135,754 203 0.20 
Other borrowings205,796 8,306 5.40 228,472 8,480 4.96 
Total borrowings619,660 12,313 2.66 364,226 8,683 3.19 
Total interest-bearing liabilities8,159,466 29,909 0.49 7,492,374 28,883 0.52 
Non-interest-bearing deposits2,352,606 2,416,866 
Non-interest-bearing liabilities193,147 157,821 
Total liabilities10,705,219 10,067,061 
Stockholders’ equity1,534,823 1,506,456 
Total liabilities and equity$12,240,042 $11,573,517 
Net interest income$270,989 $224,752 
Net interest rate spread (4)
3.15 %2.77 %
Net interest margin (5)
3.28 %2.91 %
Total cost of deposits (including non-interest-bearing deposits)
0.24 %0.28 %
(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.





21

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Selected Financial Condition Data:
Total assets$12,683,453 $12,438,653 $12,164,945 $11,739,616 $11,829,688 
Debt securities available-for-sale, at estimated fair value
470,300 507,276 546,470 568,255 314,620 
Debt securities held-to-maturity, net of allowance for securities credit losses1,027,712 1,068,034 1,099,514 1,139,193 1,125,382 
Equity investments81,722 75,269 93,888 101,155 101,314 
Restricted equity investments, at cost77,556 76,047 56,704 53,195 53,017 
Loans receivable, net of allowance for loan credit losses9,672,488 9,380,688 9,065,679 8,583,352 8,139,961 
Deposits9,959,469 9,831,484 10,056,233 9,732,816 9,774,097 
Federal Home Loan Bank advances514,200 488,750 75,002 — — 
Securities sold under agreements to repurchase and other borrowings291,203 300,149 312,178 347,910 372,179 
Total stockholders’ equity1,540,216 1,521,432 1,519,334 1,516,553 1,513,249 

For the Three Months Ended,
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Selected Operating Data:
Interest income$110,499 $99,416 $90,983 $88,457 $85,420 
Interest expense14,534 8,619 6,756 7,871 8,288 
Net interest income95,965 90,797 84,227 80,586 77,132 
Credit loss expense (benefit) 1,016 1,254 1,851 (1,573)(3,179)
Net interest income after credit loss expense (benefit) 94,949 89,543 82,376 82,159 80,311 
Other income (excluding net gain (loss) on equity investments)11,788 15,619 11,638 10,662 10,349 
Net gain (loss) on equity investments3,362 (8,078)(2,786)(1,252)(466)
Operating expenses (excluding merger related and branch consolidation (benefit) expense, net)59,045 57,919 55,128 57,097 54,434 
Branch consolidation (benefit) expense, net(346)546 402 7,286 4,014 
Merger related expenses298 196 1,965 451 225 
Income before provision for income taxes51,102 38,423 33,733 26,735 31,521 
Provision for income taxes12,298 8,940 7,974 4,078 7,354 
Net income38,804 29,483 25,759 22,657 24,167 
Net income attributable to non-controlling interest193 522 — — — 
Net income attributable to OceanFirst Financial Corp.$38,611 $28,961 $25,759 $22,657 $24,167 
Net income available to common stockholders$37,607 $27,957 $24,755 $21,653 $23,163 
Diluted earnings per share$0.64 $0.47 $0.42 $0.37 $0.39 
Net accretion/amortization of purchase accounting adjustments included in net interest income$2,004 $2,196 $2,953 $3,610 $3,644 
22

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
1.19 %0.92 %0.84 %0.72 %0.78 %
Return on average tangible assets (3) (4)
1.24 0.96 0.88 0.75 0.82 
Return on average stockholders’ equity (3)
9.68 7.31 6.57 5.65 6.05 
Return on average tangible stockholders’ equity (3) (4)
14.62 11.08 9.94 8.59 9.20 
Stockholders’ equity to total assets12.14 12.23 12.49 12.92 12.79 
Tangible stockholders’ equity to tangible assets (4)
8.38 8.39 8.60 8.89 8.78 
Tangible common equity to tangible assets (4)
7.92 7.92 8.13 8.40 8.29 
Net interest rate spread3.19 3.18 3.08 2.88 2.80 
Net interest margin3.36 3.29 3.18 2.99 2.93 
Operating expenses to average assets 1.87 1.92 1.95 2.15 1.98 
Efficiency ratio (5)
53.10 59.65 61.77 72.04 67.43 
Loans-to-deposits97.60 95.90 90.60 88.60 83.71 


For the Nine Months Ended September 30,
20222021
Performance Ratios (Annualized):
Return on average assets (3)
0.99 %0.98 %
Return on average tangible assets (3) (4)
1.03 1.02 
Return on average stockholders’ equity (3)
7.87 7.49 
Return on average tangible stockholders’ equity (3) (4)
11.91 11.46 
Net interest rate spread3.15 2.77 
Net interest margin3.28 2.91 
Operating expenses to average assets1.91 1.87 
Efficiency ratio (5)
57.90 60.62 


23

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$273,815 $279,222 $296,818 $287,404 $274,807 
Nest Egg AUA/M402,256 398,344 415,478 428,558 423,563 
Total AUA/M676,071 677,566 712,296 715,962 698,370 
Per Share Data:
Cash dividends per common share$0.20 $0.17 $0.17 $0.17 $0.17 
Stockholders' equity per common share at end of period26.04 25.73 25.58 25.63 25.47 
Tangible common equity per common share at end of period (4) (5)
16.30 15.96 15.94 15.93 15.78 
Common shares outstanding at end of period59,138,50759,130,23659,388,98359,175,046 59,417,266
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:38 38 38 47 58 
Quarterly Average Balances
Total securities$1,748,687 $1,811,869 $1,846,452 $1,710,143 $1,542,630 
Loans receivable, net9,512,447 9,204,583 8,796,861 8,297,395 7,864,720 
Total interest-earning assets11,326,782 11,083,892 10,732,139 10,706,190 10,461,147 
Total goodwill and core deposit intangible521,566 522,666 518,106 519,401 520,765 
Total assets12,517,955 12,251,985 11,947,210 11,953,610 11,738,037 
Time deposits1,467,297 937,387 767,709 819,025 904,384 
Total deposits (including non-interest-bearing deposits)10,066,342 9,665,200 9,944,352 9,937,607 9,699,033 
Total borrowings643,294 837,164 375,578 361,500 371,189 
Total interest-bearing liabilities8,380,936 8,174,240 7,918,133 7,831,519 7,494,099 
Non-interest bearing deposits2,328,700 2,328,124 2,401,797 2,467,588 2,576,123 
Stockholders' equity1,541,755 1,534,721 1,527,839 1,519,976 1,519,488 
Tangible stockholders’ equity1,020,189 1,012,055 1,009,733 1,000,575 998,723 
Quarterly Yields and Costs
Total securities2.27 %1.90 %1.86 %1.57 %1.57 %
Loans receivable, net4.18 3.95 3.79 3.89 3.98 
Total interest-earning assets3.88 3.60 3.43 3.28 3.24 
Time deposits1.53 0.97 0.77 0.84 0.94 
Total cost of deposits (including non-interest-bearing deposits)0.36 0.18 0.16 0.20 0.22 
Total borrowed funds3.27 2.06 2.93 3.14 3.11 
Total interest-bearing liabilities0.69 0.42 0.35 0.40 0.44 
Net interest spread3.19 3.18 3.08 2.88 2.80 
Net interest margin3.36 3.29 3.18 2.99 2.93 
(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 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.



24


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

NON-GAAP RECONCILIATION
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Core Earnings:
Net income available to common stockholders (GAAP)
$37,607 $27,957 $24,755 $21,653 $23,163 
Add (less) non-recurring and non-core items:
Merger related expenses298 196 1,965 451 225 
Branch consolidation (benefit) expense, net (1)
(346)546 402 7,286 4,014 
Net (gain) loss on equity investments(3,362)8,078 2,786 1,252 466 
Income tax expense (benefit) on items824 (2,132)(1,141)(2,144)(1,138)
Core earnings (Non-GAAP)
$35,021 $34,645 $28,767 $28,498 $26,730 
Income tax expense$12,298 $8,940 $7,974 $4,078 $7,354 
Credit loss provision (benefit)1,016 1,254 1,851 (1,573)(3,179)
Less: income tax expense (benefit) on non-core items824 (2,132)(1,141)(2,144)(1,138)
Core earnings PTPP (Non-GAAP)
$47,511 $46,971 $39,733 $33,147 $32,043 
Core earnings diluted earnings per share$0.60 $0.59 $0.49 $0.48 $0.45 
Core earnings PTPP diluted earnings per share$0.81 $0.80 $0.67 $0.56 $0.54 
Core Ratios (Annualized):
Return on average assets1.11 %1.13 %0.98 %0.95 %0.90 %
Return on average tangible stockholders’ equity13.62 13.73 11.55 11.30 10.62 
Efficiency ratio54.80 54.43 57.51 62.57 62.22 
(1) Includes $2.0 million of gains related to the sale of two branches for the three months ended December 31, 2021.
25

(continued)
For the Nine Months Ended September 30,
20222021
Core Earnings:
Net income available to common stockholders (GAAP)
$90,319 $84,407 
Add (less) non-recurring and non-core items:
Merger related expenses2,459 1,052 
Branch consolidation expense, net602 5,051 
Net loss (gain) on equity investments7,502 (8,397)
Income tax (benefit) expense on items(2,449)554 
Core earnings (Non-GAAP)
$98,433 $82,667 
Income tax expense$29,212 $28,087 
Credit loss provision (benefit)4,121 (10,259)
Less: income tax expense (benefit) on non-core items(2,449)554 
Core earnings PTPP (Non-GAAP)
$134,215 $99,941 
Core diluted earnings per share$1.67 $1.38 
Core earnings PTPP diluted earnings per share$2.28 $1.67 
Core Ratios (Annualized):
Return on average assets1.08 %0.95 %
Return on average tangible stockholders’ equity12.98 11.23 
Efficiency ratio55.51 60.23 


26

(continued)

September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Tangible Equity:
Total stockholders' equity$1,540,216 $1,521,432 $1,519,334 $1,516,553 $1,513,249 
Less:
Goodwill506,146 506,146 500,319 500,319 500,319 
Core deposit intangible14,656 15,827 17,005 18,215 19,558 
Tangible stockholders' equity1,019,414 999,459 1,002,010 998,019 993,372 
Less:
Preferred stock55,527 55,527 55,527 55,527 55,527 
Tangible common equity$963,887 $943,932 $946,483 $942,492 $937,845 
Tangible Assets:
Total assets$12,683,453 $12,438,653 $12,164,945 $11,739,616 $11,829,688 
Less:
Goodwill506,146 506,146 500,319 500,319 500,319 
Core deposit intangible14,656 15,827 17,005 18,215 19,558 
Tangible assets$12,162,651 $11,916,680 $11,647,621 $11,221,082 $11,309,811 
Tangible stockholders' equity to tangible assets8.38 %8.39 %8.60 %8.89 %8.78 %
Tangible common equity to tangible assets7.92 %7.92 %8.13 %8.40 %8.29 %
27

(continued)
SUPPLEMENTAL INFORMATION ON TRIDENT
For the Three Months Ended,For the Nine Months Ended,
September 30, 2022June 30, 2022September 30, 2022
GAAP Measures:
Net interest income$95,965 $90,797 $270,989 
Other income15,150 7,541 31,543 
Total income111,115 98,338 302,532 
Less: income attributable to Trident (1)
3,259 4,510 7,769 
Total income, excluding Trident107,856 93,828 294,763 
Total operating expense58,997 58,661 175,153 
Less: expense attributable to Trident (2)
2,777 3,206 5,983 
Total operating expense, excluding Trident56,220 55,455 169,170 
Efficiency ratio53.10 %59.65 %57.90 %
Efficiency ratio, excluding Trident52.13 59.10 57.39 
Core Measures (non-GAAP):
Net interest income$95,965 $90,797 $270,989 
Other income11,788 15,619 39,045 
Total income107,753 106,416 310,034 
Less: income attributable to Trident (1)
3,259 4,510 7,769 
Total core income, excluding Trident104,494 101,906 302,265 
Core operating expense59,045 57,919 172,092 
Less: expense attributable to Trident (2)
2,777 3,206 5,983 
Total operating expense, excluding Trident56,268 54,713 166,109 
Core efficiency ratio54.80 %54.43 %55.51 %
Core efficiency ratio, excluding Trident53.85 53.69 54.95 
(1)    Trident title-related activity is primarily included in fees and service charges in the Consolidated Statements of Income.
(2)    Trident operating expenses are primarily included in compensation and employee benefits and other operating expenses in the Consolidated Statements of Income.
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