EX-99.1 2 ex991-earningsreleasesepte.htm EX-99.1

|  | Press Release

Exhibit 99.1
Company Contact:
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com
FOR IMMEDIATE RELEASE
OCEANFIRST FINANCIAL CORP.
ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS
RED BANK, NEW JERSEY, October 17, 2024 - OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $24.1 million, or $0.42 per diluted share, for the three months ended September 30, 2024, an increase from $19.7 million, or $0.33 per diluted share, for the corresponding prior year period, and $23.4 million, or $0.40 per diluted share, for the prior linked quarter. For the nine months ended September 30, 2024, the Company reported net income available to common stockholders of $75.1 million, or $1.29 per diluted share, an increase from $73.3 million, or $1.24 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

| For the Three Months Ended, |  | For the Nine Months Ended,
Performance Ratios (Annualized): | September 30, |  | June 30, |  | September 30, |  | September 30, |  | September 30,
2024 |  | 2024 |  | 2023 |  | 2024 |  | 2023
Return on average assets | 0.71 | % |  | 0.70 | % |  | 0.57 | % |  | 0.74 | % |  | 0.73 | %
Return on average stockholders’ equity | 5.68 |  |  | 5.61 |  |  | 4.75 |  |  | 5.98 |  |  | 6.03 |
Return on average tangible stockholders’ equity (a) | 8.16 |  |  | 8.10 |  |  | 6.93 |  |  | 8.62 |  |  | 8.85 |
Return on average tangible common equity (a) | 8.57 |  |  | 8.51 |  |  | 7.29 |  |  | 9.05 |  |  | 9.31 |
Efficiency ratio | 65.77 |  |  | 62.86 |  |  | 63.37 |  |  | 62.71 |  |  | 62.15 |
Net interest margin | 2.67 |  |  | 2.71 |  |  | 2.91 |  |  | 2.73 |  |  | 3.09 |

(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

Core earnings 1 for the three and nine months ended September 30, 2024 were $23.2 million and $71.5 million, respectively, or $0.39 and $1.22 per diluted share, an increase from $18.6 million or $0.32 per diluted share and a decrease from $78.4 million or $1.33 per diluted share, for the corresponding prior year periods, and an increase from $22.7 million, or $0.39 per diluted share, for the prior linked quarter.
Core earnings PTPP 1 for the three and nine months ended September 30, 2024 was $30.9 million and $99.8 million, respectively, or $0.53 and $1.71 per diluted share, as compared to $35.0 million and $118.7 million, or $0.59 and $2.01 per diluted share, for the corresponding prior year periods, and $32.7 million, or $0.56 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:

| For the Three Months Ended, |  | For the Nine Months Ended,
| September 30, |  | June 30, |  | September 30, |  | September 30, |  | September 30,
Core Ratios 1 (Annualized): | 2024 |  | 2024 |  | 2023 |  | 2024 |  | 2023
Return on average assets | 0.69 | % |  | 0.68 | % |  | 0.54 | % |  | 0.71 | % |  | 0.78 | %
Return on average tangible stockholders’ equity | 7.85 |  |  | 7.86 |  |  | 6.54 |  |  | 8.20 |  |  | 9.46 |
Return on average tangible common equity | 8.24 |  |  | 8.26 |  |  | 6.88 |  |  | 8.61 |  |  | 9.96 |
Efficiency ratio | 66.00 |  |  | 63.47 |  |  | 64.29 |  |  | 63.49 |  |  | 60.79 |
Core diluted earnings per share | $ | 0.39 |  |  | $ | 0.39 |  |  | $ | 0.32 |  |  | $ | 1.22 |  |  | $ | 1.33 |
Core PTPP diluted earnings per share | 0.53 |  |  | 0.56 |  |  | 0.59 |  |  | 1.71 |  |  | 2.01 |

Key developments for the recent quarter are described below:
•Net Interest Income Stabilization: Net interest income of $82.2 million for the quarter as compared to $82.3 million in the prior linked quarter.
•Deposits: Total deposits increased by $122.2 million to $10.1 billion from $10.0 billion and the loan-to-deposit ratio was 99% at September 30, 2024.
1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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•Strategic Investments: The results include $3.3 million of expenses, of which $1.7 million related to merger and acquisition costs, for the talent acquisition of Garden State Home Loans, Inc. and acquisition of Spring Garden Capital Group, LLC.2 These are expected to improve future operating performance by expanding fee revenue and specialty finance offerings.
•Asset Quality: Asset quality metrics remain strong as non-performing loans and loans 30 to 89 days past due as a percentage of total loans receivable were 0.28% and 0.15%, respectively. Non-performing loans decreased by $5.3 million, to $28.1 million, and the Company recorded net loan recoveries of $88,000 for the quarter.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which builds on the existing strength of our balance sheet, including robust capital and asset quality, coupled with stabilization of net interest income and margin. The quarter includes additional investments in mortgage banking activities, which will expand our digital channels and fee revenue and, in October, we completed an acquisition of a specialty finance company expanding our product offerings.” Mr. Maher added, “Additionally, the Company hosted its third annual CommUNITYFirst Day. Thank you to our incredible employees and community partners for a successful event involving over 700 employees and nearly 3,000 hours across our communities.”
The Company’s Board of Directors declared its 111th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on November 15, 2024 to common stockholders of record on November 4, 2024. The Company’s Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on November 15, 2024 to preferred stockholders of record on October 31, 2024.
2 The talent acquisition of Garden State Home Loans, Inc. was effective August 3, 2024. Additionally, the acquisition of Spring Garden Capital Group, LLC was effective October 1, 2024.
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Results of Operations
The current quarter was impacted by a continued mix-shift and repricing of funding costs. Further, the results were impacted by the following non-recurring events: $1.7 million of merger related expenses, a $1.4 million gain on sale of a portion of the Company’s trust business, a $855,000 gain on sale of assets held for sale, and the resolution, via sale of collateral, of a single commercial real estate relationship of $7.2 million that was moved to non-accrual and partially charged-off in prior periods.
Net Interest Income and Margin
Three months ended September 30, 2024 vs. September 30, 2023
Net interest income decreased to $82.2 million, from $91.0 million, primarily reflecting the net impact of the higher interest rate environment.
Net interest margin decreased to 2.67%, from 2.91%, which included the impact of purchase accounting accretion of 0.02% and 0.06%, respectively. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets.
Average interest-earning assets decreased by $152.1 million due to balance sheet contraction while the average yield for interest-earning assets increased to 5.26%, from 5.08%.
The cost of average interest-bearing liabilities increased to 3.20%, from 2.71%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.44%, from 1.99%. Average interest-bearing liabilities decreased by $5.8 million, primarily due to a decrease in total deposits, largely offset by an increase in total borrowings.
Nine months ended September 30, 2024 vs. September 30, 2023
Net interest income decreased to $250.7 million, from $281.9 million, reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.73%, from 3.09%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05% for the respective periods.
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Average interest-earning assets increased by $45.8 million, primarily driven by an increase in securities growth of $153.9 million, which was funded through the decrease of $135.4 million of interest-earning deposits and short-term investments. The average yield increased to 5.25%, from 4.90%.
The total cost of average interest-bearing liabilities increased to 3.12%, from 2.29%. The total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 1.48%. Average interest-bearing liabilities increased by $258.0 million, primarily due to an increase in total deposits, partly offset by a decrease in total borrowings.
Three months ended September 30, 2024 vs. June 30, 2024
Net interest income decreased by $44,000, as the increase in cost of deposits slightly outpaced the decrease in Federal Home Loan Bank (“FHLB”) advance costs and the yield of average interest earning assets. Net interest margin decreased to 2.67%, from 2.71%, which included the impact of purchase accounting accretion of 0.02% and 0.04% for the respective periods.
Average interest-earning assets increased by $28.9 million, primarily due to an increase in interest-earning deposits and short-term investments, partly offset by a decrease in loans. The yield on average interest-earning assets increased to 5.26%, from 5.25%.
The total cost of average interest-bearing liabilities increased to 3.20%, from 3.14%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.44%, from 2.37%. Average interest-bearing liabilities increased by $1.8 million, primarily due to an increase in FHLB advances, partly offset by a decrease in deposits and other borrowings.
Provision for Credit Losses
Provision for credit losses for the three and nine months ended September 30, 2024 was $517,000 and $4.2 million, respectively, as compared to $10.3 million and $14.5 million for the corresponding prior year periods, and $3.1 million in the prior linked quarter. The lower provision for
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the current quarter was a result of flat loan growth, net loan recoveries, and the net effect of shifts in the Company’s loan portfolio and external macro economic forecasts.
Net loan recoveries were $88,000 and net loan charge-offs were $1.7 million for the three and nine months ended September 30, 2024, respectively, as compared to net loan charge-offs of $8.3 million for both the three and nine months ended September 30, 2023. Net loan charge-offs were $1.5 million in the prior linked quarter. The prior year periods and prior linked quarter included partial charge-offs of $8.4 million and $1.6 million, respectively, for the single commercial real estate relationship disclosed previously. Refer to “Results of Operations” section for further discussion.
Non-interest Income
Three months ended September 30, 2024 vs. September 30, 2023
Other income increased to $14.7 million, as compared to $10.8 million. Other income was favorably impacted by non-core operations related to net gains on equity investments of $1.4 million and $1.5 million, for the respective quarters, and a $1.4 million gain on sale of a portion of the Company’s trust business in the current quarter.
Excluding non-core operations, other income increased by $2.5 million, primarily driven by increases in fees and service charges of $918,000 related to treasury management fees, a non-recurring gain on sale of assets held for sale of $855,000, and net gain on sale of loans of $439,000.
Nine months ended September 30, 2024 vs. September 30, 2023
Other income increased to $38.0 million, as compared to $21.8 million. The current period was favorably impacted by non-core operations related to net gains on equity investments of $4.2 million and a $2.6 million gain on sale of a portion of the Company’s trust business. The prior year was adversely impacted by non-core operations of $6.6 million, primarily related to losses on sale of investments.
Excluding non-core operations, other income increased by $2.8 million, primarily driven by increases in the cash surrender value of bank owned life insurance of $1.5 million, which included one-
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time death benefits in the current period, net gain on sale of loans of $1.2 million, and gain on sale of assets held for sale of $855,000. This was partially offset by a decrease in trust and asset management revenue of $590,000, related to the sale of a portion of the Company’s trust business.
Three months ended September 30, 2024 vs. June 30, 2024
Other income in the prior linked quarter was $11.0 million and was favorably impacted by non-core operations of $887,000 related to net gains on equity investments. Excluding non-core operations, other income increased by $1.7 million, primarily due increases in fees and service charges of $1.1 million related to treasury management fees, and the gain on sale of assets held for sale of $855,000, as noted above.
Non-interest Expense
Three months ended September 30, 2024 vs. September 30, 2023
Operating expenses decreased to $63.7 million, as compared to $64.5 million. Operating expenses were adversely impacted by non-core operations related to merger related expenses of $1.7 million in the current quarter.
Excluding non-core operations, operating expenses decreased by $2.4 million. The primary driver was a decrease in professional fees of $3.3 million as the Company realized benefits from the performance improvement initiatives and investments made in the prior periods. This was partially offset by an increase in other operating expense of $1.1 million, which was partly due to additional loan servicing expenses.
Nine months ended September 30, 2024 vs. September 30, 2023
Operating expenses decreased to $181.0 million, as compared to $188.7 million. Operating expenses were adversely impacted by $2.1 million in the current year of non-core operations related to merger related expenses and a FDIC special assessment, and by $92,000 in the prior year for merger related and net branch consolidation expenses.
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Excluding non-core operations, operating expenses decreased by $9.7 million. The primary drivers were decreases in professional fees of $8.6 million and compensation and employee benefits expenses of $1.9 million, which were due to the same initiatives discussed in the three-month periods above. This was partially offset by an increase in other operating expenses of $1.3 million, which was partly due to additional loan servicing expenses.
Three months ended September 30, 2024 vs. June 30, 2024
Excluding non-core operations, operating expenses increased by $3.4 million. The primary drivers were increases in compensation and benefits of $2.7 million, related to additional personnel in connection with the expansion of fee revenue noted above, and other operating expense of $854,000, which was partly due to additional loan servicing expenses.
Income Tax Expense
The provision for income taxes was $7.5 million and $25.2 million for the three and nine months ended September 30, 2024, respectively, as compared to $6.5 million and $24.1 million for the same prior year periods, and $7.1 million for the prior linked quarter. The effective tax rate was 22.9% and 24.4% for the three and nine months ended September 30, 2024, respectively, as compared to 23.9% and 24.0% for the same prior year periods, and 22.5% for the prior linked quarter. The Company’s current quarter effective tax rate was positively impacted by geographic mix as compared to the same prior year period and the nine months ended September 30, 2024 was adversely impacted by the non-recurring write-off of a deferred tax asset of $1.2 million net of other state effects. The prior linked quarter’s effective tax rate was positively impacted by the net effect of state law changes.
Financial Condition
September 30, 2024 vs. December 31, 2023
Total assets decreased by $49.8 million to $13.49 billion, from $13.54 billion, primarily due to decreases in loans, partly offset by net increase in total debt securities. Total loans decreased by $172.4 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial
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portfolio of $188.4 million driven by loan payoffs. The loan pipeline increased by $168.6 million to $351.6 million, from $183.0 million. Held-to-maturity debt securities decreased by $84.6 million to $1.08 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale increased $157.9 million to $911.8 million, from $753.9 million, primarily due to new purchases. Other assets decreased by $20.3 million to $159.3 million, from $179.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.
Total liabilities decreased by $82.3 million to $11.79 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $318.8 million to $10.12 billion, from $10.43 billion, primarily due to decreases in high-yield savings accounts of $326.9 million and time deposits of $224.6 million, offset by increases in money market accounts of $266.8 million. Time deposits decreased to $2.22 billion, from $2.45 billion, representing 22.0% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits, which decreased by $430.4 million, offset by increases in retail time deposits of $221.4 million. The loan-to-deposit ratio was 99.1%, as compared to 97.7%. FHLB advances increased by $43.2 million to $891.9 million, from $848.6 million and other borrowings increased by $223.5 million to $419.9 million, from $196.5 million, as a result of lower cost funding availability.
Other liabilities decreased by $43.1 million to $257.6 million, from $300.7 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.
Capital levels remain strong and in excess of “well-capitalized” regulatory levels at September 30, 2024, including the Company’s estimated common equity tier one capital ratio which increased to 11.3%, up approximately 40 basis points from December 31, 2023.
Total stockholders’ equity increased to $1.69 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. For the nine months ended September 30, 2024, the Company repurchased 1,383,238 shares totaling
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$21.5 million representing a weighted average cost of $15.38. The Company had 1,551,200 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $8.7 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
The Company completed its annual goodwill impairment test as of August 31, 2024. Based on a quantitative assessment, the Company concluded that goodwill was not impaired. However, the Company continues to monitor its goodwill as further and continued negative industry and economic trends and decline in the Company’s stock price may result in a re-evaluation before the next required annual test.
The Company’s tangible common equity 3 increased by $35.0 million to $1.13 billion. The Company’s stockholders’ equity to assets ratio was 12.56% at September 30, 2024, and tangible common equity to tangible assets ratio increased by 30 basis points during the quarter to 8.68%, primarily due to the drivers described above.
Book value per common share increased to $29.02, as compared to $27.96. Tangible book value per common share 3 increased to $19.28, as compared to $18.35.
Asset Quality
September 30, 2024 vs. December 31, 2023
Overall asset quality metrics remained stable. The Company’s non-performing loans decreased to $28.1 million from $29.5 million and represented 0.28% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 245.45%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decrease d to $15.5 million, from $19.2 million. Criticized and classified assets increased to $189.1 million, from $146.9 million. The
3 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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Company’s allowance for loan credit losses was 0.69% of total loans, as compared to 0.66%. Refer to “Provision for Credit Losses” section for further discussion.
The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans decreased to $25.3 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 273.51%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $14.2 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $74.8 million, or 0.75% of total loans, as compared to $74.7 million, or 0.73% of total loans.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
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Conference Call
As previously announced, the Company will host an earnings conference call on Friday, October 18, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 257920. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 120573, from one hour after the end of the call until November 15, 2024. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
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OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.5 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.
Forward-Looking Statements
In addition to historical information, this news release contains certain f orward-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 uncertai n. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company’s rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)

|  | September 30, |  | June 30, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2023 |  | 2023
|  | (Unaudited) |  | (Unaudited) |  |  |  | (Unaudited)
Assets |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 214,171 |  |  | $ | 181,198 |  |  | $ | 153,718 |  |  | $ | 408,882 |
Debt securities available-for-sale, at estimated fair value |  | 911,753 |  |  | 721,484 |  |  | 753,892 |  |  | 453,208 |
Debt securities held-to-maturity, net of allowance for securities credit losses of $902 at September 30, 2024, $958 at June 30, 2024, $1,133 at December 31, 2023 and $932 at September 30, 2023 (estimated fair value of $1,007,781 at September 30, 2024, $1,003,850 at June 30, 2024, $1,068,438 at December 31, 2023 and $1,047,342 at September 30, 2023) |  | 1,075,131 |  |  | 1,105,843 |  |  | 1,159,735 |  |  | 1,189,339 |
Equity investments |  | 95,688 |  |  | 104,132 |  |  | 100,163 |  |  | 97,908 |
Restricted equity investments, at cost |  | 98,545 |  |  | 92,679 |  |  | 93,766 |  |  | 82,484 |
Loans receivable, net of allowance for loan credit losses of $69,066 at September 30, 2024, $68,839 at June 30, 2024, $67,137 at December 31, 2023 and $63,877 at September 30, 2023 |  | 9,963,598 |  |  | 9,961,117 |  |  | 10,136,721 |  |  | 10,068,156 |
Loans held-for-sale |  | 23,036 |  |  | 2,062 |  |  | 5,166 |  |  | — |
Interest and dividends receivable |  | 48,821 |  |  | 50,976 |  |  | 51,874 |  |  | 50,030 |
Premises and equipment, net |  | 116,087 |  |  | 117,392 |  |  | 121,372 |  |  | 122,646 |
Bank owned life insurance |  | 269,138 |  |  | 267,867 |  |  | 266,498 |  |  | 265,071 |
Assets held for sale |  | — |  |  | 28 |  |  | 28 |  |  | 3,004 |
Goodwill |  | 506,146 |  |  | 506,146 |  |  | 506,146 |  |  | 506,146 |
Core deposit intangible |  | 7,056 |  |  | 7,859 |  |  | 9,513 |  |  | 10,489 |
Other assets |  | 159,313 |  |  | 202,972 |  |  | 179,661 |  |  | 240,820 |
Total assets |  | $ | 13,488,483 |  |  | $ | 13,321,755 |  |  | $ | 13,538,253 |  |  | $ | 13,498,183 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |
Deposits |  | $ | 10,116,167 |  |  | $ | 9,994,017 |  |  | $ | 10,434,949 |  |  | $ | 10,533,929 |
Federal Home Loan Bank advances |  | 891,860 |  |  | 789,337 |  |  | 848,636 |  |  | 606,056 |
Securities sold under agreements to repurchase with customers |  | 81,163 |  |  | 80,000 |  |  | 73,148 |  |  | 82,981 |
Other borrowings |  | 419,927 |  |  | 424,490 |  |  | 196,456 |  |  | 196,183 |
Advances by borrowers for taxes and insurance |  | 27,282 |  |  | 25,168 |  |  | 22,407 |  |  | 29,696 |
Other liabilities |  | 257,576 |  |  | 332,074 |  |  | 300,712 |  |  | 411,734 |
Total liabilities |  | 11,793,975 |  |  | 11,645,086 |  |  | 11,876,308 |  |  | 11,860,579 |
Stockholders’ equity: |  |  |  |  |  |  |  |
OceanFirst Financial Corp. stockholders’ equity |  | 1,693,654 |  |  | 1,675,885 |  |  | 1,661,163 |  |  | 1,636,891 |
Non-controlling interest |  | 854 |  |  | 784 |  |  | 782 |  |  | 713 |
Total stockholders’ equity |  | 1,694,508 |  |  | 1,676,669 |  |  | 1,661,945 |  |  | 1,637,604 |
Total liabilities and stockholders’ equity |  | $ | 13,488,483 |  |  | $ | 13,321,755 |  |  | $ | 13,538,253 |  |  | $ | 13,498,183 |

13

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)

|  | For the Three Months Ended, |  | For the Nine Months Ended,
|  | September 30, |  | June 30, |  | September 30, |  | September 30, |  | September 30,
|  | 2024 |  | 2024 |  | 2023 |  | 2024 |  | 2023
|  | |---------------------- (Unaudited) ----------------------| |  | |---------- (Unaudited) -----------|
Interest income: |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 136,635 |  |  | $ | 136,049 |  |  | $ | 133,931 |  |  | $ | 409,805 |  |  | $ | 384,755 |
Debt securities |  | 19,449 |  |  | 19,039 |  |  | 15,223 |  |  | 58,349 |  |  | 43,829 |
Equity investments and other |  | 5,441 |  |  | 4,338 |  |  | 9,256 |  |  | 14,399 |  |  | 18,956 |
Total interest income |  | 161,525 |  |  | 159,426 |  |  | 158,410 |  |  | 482,553 |  |  | 447,540 |
Interest expense: |  |  |  |  |  |  |  |  |  |
Deposits |  | 62,318 |  |  | 60,071 |  |  | 53,287 |  |  | 182,244 |  |  | 112,551 |
Borrowed funds |  | 16,988 |  |  | 17,092 |  |  | 14,127 |  |  | 49,603 |  |  | 53,082 |
Total interest expense |  | 79,306 |  |  | 77,163 |  |  | 67,414 |  |  | 231,847 |  |  | 165,633 |
Net interest income |  | 82,219 |  |  | 82,263 |  |  | 90,996 |  |  | 250,706 |  |  | 281,907 |
Provision for credit losses |  | 517 |  |  | 3,114 |  |  | 10,283 |  |  | 4,222 |  |  | 14,525 |
Net interest income after provision for credit losses |  | 81,702 |  |  | 79,149 |  |  | 80,713 |  |  | 246,484 |  |  | 267,382 |
Other income: |  |  |  |  |  |  |  |  |  |
Bankcard services revenue |  | 1,615 |  |  | 1,571 |  |  | 1,507 |  |  | 4,602 |  |  | 4,381 |
Trust and asset management revenue |  | 384 |  |  | 419 |  |  | 662 |  |  | 1,329 |  |  | 1,919 |
Fees and service charges |  | 6,096 |  |  | 5,015 |  |  | 5,178 |  |  | 15,584 |  |  | 15,939 |
Net gain on sales of loans |  | 505 |  |  | 420 |  |  | 66 |  |  | 1,282 |  |  | 119 |
Net gain (loss) on equity investments |  | 1,420 |  |  | 887 |  |  | 1,452 |  |  | 4,230 |  |  | (5,908) |
Income from bank owned life insurance |  | 1,779 |  |  | 1,726 |  |  | 1,390 |  |  | 5,367 |  |  | 3,853 |
Commercial loan swap income |  | 414 |  |  | 241 |  |  | 11 |  |  | 793 |  |  | 712 |
Other |  | 2,471 |  |  | 706 |  |  | 496 |  |  | 4,768 |  |  | 748 |
Total other income |  | 14,684 |  |  | 10,985 |  |  | 10,762 |  |  | 37,955 |  |  | 21,763 |
Operating expenses: |  |  |  |  |  |  |  |  |  |
Compensation and employee benefits |  | 35,844 |  |  | 33,136 |  |  | 35,534 |  |  | 101,739 |  |  | 103,676 |
Occupancy |  | 5,157 |  |  | 5,175 |  |  | 5,466 |  |  | 15,531 |  |  | 15,970 |
Equipment |  | 1,026 |  |  | 1,068 |  |  | 1,172 |  |  | 3,224 |  |  | 3,478 |
Marketing |  | 1,385 |  |  | 1,175 |  |  | 1,183 |  |  | 3,550 |  |  | 3,126 |
Federal deposit insurance and regulatory assessments |  | 2,618 |  |  | 2,685 |  |  | 2,557 |  |  | 8,438 |  |  | 6,771 |
Data processing |  | 5,940 |  |  | 6,018 |  |  | 6,086 |  |  | 17,914 |  |  | 18,405 |
Check card processing |  | 1,153 |  |  | 1,075 |  |  | 1,154 |  |  | 3,278 |  |  | 3,649 |
Professional fees |  | 1,970 |  |  | 2,161 |  |  | 5,258 |  |  | 6,863 |  |  | 15,439 |
Amortization of core deposit intangible |  | 803 |  |  | 810 |  |  | 987 |  |  | 2,457 |  |  | 3,008 |
Branch consolidation expense, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 70 |
Merger related expenses |  | 1,669 |  |  | — |  |  | — |  |  | 1,669 |  |  | 22 |
Other operating expense |  | 6,171 |  |  | 5,317 |  |  | 5,087 |  |  | 16,365 |  |  | 15,109 |
Total operating expenses |  | 63,736 |  |  | 58,620 |  |  | 64,484 |  |  | 181,028 |  |  | 188,723 |
Income before provision for income taxes |  | 32,650 |  |  | 31,514 |  |  | 26,991 |  |  | 103,411 |  |  | 100,422 |
Provision for income taxes |  | 7,464 |  |  | 7,082 |  |  | 6,459 |  |  | 25,183 |  |  | 24,109 |
Net income |  | 25,186 |  |  | 24,432 |  |  | 20,532 |  |  | 78,228 |  |  | 76,313 |
Net income (loss) attributable to non-controlling interest |  | 70 |  |  | 59 |  |  | (135) |  |  | 72 |  |  | (34) |
Net income attributable to OceanFirst Financial Corp. |  | 25,116 |  |  | 24,373 |  |  | 20,667 |  |  | 78,156 |  |  | 76,347 |
Dividends on preferred shares |  | 1,004 |  |  | 1,004 |  |  | 1,004 |  |  | 3,012 |  |  | 3,012 |
Net income available to common stockholders |  | $ | 24,112 |  |  | $ | 23,369 |  |  | $ | 19,663 |  |  | $ | 75,144 |  |  | $ | 73,335 |
Basic earnings per share |  | $ | 0.42 |  |  | $ | 0.40 |  |  | $ | 0.33 |  |  | $ | 1.29 |  |  | $ | 1.24 |
Diluted earnings per share |  | $ | 0.42 |  |  | $ | 0.40 |  |  | $ | 0.33 |  |  | $ | 1.29 |  |  | $ | 1.24 |
Average basic shares outstanding |  | 58,065 |  |  | 58,356 |  |  | 59,104 |  |  | 58,405 |  |  | 59,037 |
Average diluted shares outstanding |  | 58,068 |  |  | 58,357 |  |  | 59,111 |  |  | 58,407 |  |  | 59,068 |

14

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)

LOANS RECEIVABLE |  |  | At
|  |  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  |  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Commercial: |  |  |  |  |  |  |  |  |  |  |
Commercial real estate - investor |  |  | $ | 5,273,159 |  |  | $ | 5,324,994 |  |  | $ | 5,322,755 |  |  | $ | 5,353,974 |  |  | $ | 5,334,279 |
Commercial real estate - owner-occupied |  | 841,930 |  |  | 857,710 |  |  | 914,582 |  |  | 943,891 |  |  | 957,216 |
Commercial and industrial |  |  | 660,879 |  |  | 616,400 |  |  | 677,176 |  |  | 666,532 |  |  | 652,119 |
Total commercial |  |  | 6,775,968 |  |  | 6,799,104 |  |  | 6,914,513 |  |  | 6,964,397 |  |  | 6,943,614 |
Consumer: |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | 3,003,213 |  |  | 2,977,698 |  |  | 2,965,276 |  |  | 2,979,534 |  |  | 2,928,259 |
Home equity loans and lines and other consumer ("other consumer") |  | 242,975 |  |  | 242,526 |  |  | 245,859 |  |  | 250,664 |  |  | 251,698 |
Total consumer |  |  | 3,246,188 |  |  | 3,220,224 |  |  | 3,211,135 |  |  | 3,230,198 |  |  | 3,179,957 |
Total loans |  |  | 10,022,156 |  |  | 10,019,328 |  |  | 10,125,648 |  |  | 10,194,595 |  |  | 10,123,571 |
Deferred origination costs (fees), net |  | 10,508 |  |  | 10,628 |  |  | 9,734 |  |  | 9,263 |  |  | 8,462 |
Allowance for loan credit losses |  |  | (69,066) |  |  | (68,839) |  |  | (67,173) |  |  | (67,137) |  |  | (63,877) |
Loans receivable, net |  |  | $ | 9,963,598 |  |  | $ | 9,961,117 |  |  | $ | 10,068,209 |  |  | $ | 10,136,721 |  |  | $ | 10,068,156 |
Mortgage loans serviced for others |  | $ | 142,394 |  |  | $ | 104,136 |  |  | $ | 89,555 |  |  | $ | 68,217 |  |  | $ | 52,796 |
| At September 30, 2024 Average Yield |  |  |  |  |  |  |  |  |  |
Loan pipeline (1): |  |  |  |  |  |  |  |  |  |  |
Commercial | 8.28 | % |  | $ | 199,818 |  |  | $ | 166,206 |  |  | $ | 66,167 |  |  | $ | 124,707 |  |  | $ | 50,756 |
Residential real estate | 6.09 |  |  | 137,978 |  |  | 80,330 |  |  | 57,340 |  |  | 49,499 |  |  | 66,682 |
Other consumer | 8.94 |  |  | 13,788 |  |  | 12,586 |  |  | 13,030 |  |  | 8,819 |  |  | 13,795 |
Total | 7.45 | % |  | $ | 351,584 |  |  | $ | 259,122 |  |  | $ | 136,537 |  |  | $ | 183,025 |  |  | $ | 131,233 |

| For the Three Months Ended |  |
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |  |
| 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023 |  |
| Average Yield |  |  |  |  |  |  |  |  |  |  |  |
Loan originations: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | 7.99 | % |  | $ | 245,886 |  |  | $ | 56,053 |  |  | $ | 123,010 |  |  | $ | 94,294 |  |  | $ | 90,263 |  |  |
Residential real estate | 6.51 |  |  | 169,273 |  |  | 121,388 |  |  | 78,270 |  |  | 113,227 |  |  | 92,299 |  |  |
Other consumer | 8.98 |  |  | 15,760 |  |  | 16,970 |  |  | 11,405 |  |  | 16,971 |  |  | 17,019 |  |  |
Total | 7.44 | % |  | $ | 430,919 |  |  | $ | 194,411 |  |  | $ | 212,685 |  |  | $ | 224,492 |  |  | $ | 199,581 |  |  |
Loans sold |  |  | $ | 65,296 |  |  | $ | 45,045 |  |  | $ | 29,965 |  |  | $ | 20,138 |  |  | $ | 15,404 |  |  |

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

DEPOSITS | At
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
| 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Type of Account |  |  |  |  |  |  |  |  |
Non-interest-bearing | $ | 1,638,447 |  |  | $ | 1,632,521 |  |  | $ | 1,639,828 |  |  | $ | 1,657,119 |  |  | $ | 1,827,381 |
Interest-bearing checking | 3,896,348 |  |  | 3,667,837 |  |  | 3,865,699 |  |  | 3,911,766 |  |  | 3,708,874 |
Money market | 1,288,555 |  |  | 1,210,312 |  |  | 1,150,979 |  |  | 1,021,805 |  |  | 860,025 |
Savings | 1,071,946 |  |  | 1,115,688 |  |  | 1,260,309 |  |  | 1,398,837 |  |  | 1,484,000 |
Time deposits (1) | 2,220,871 |  |  | 2,367,659 |  |  | 2,320,036 |  |  | 2,445,422 |  |  | 2,653,649 |
Total deposits | $ | 10,116,167 |  |  | $ | 9,994,017 |  |  | $ | 10,236,851 |  |  | $ | 10,434,949 |  |  | $ | 10,533,929 |

(1)Includes brokered time deposits of $201.0 million, $401.6 million, $543.4 million, $631.5 million, and $995.5 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
15

OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)

ASSET QUALITY (1) | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Non-performing loans: |  |  |  |  |  |  |  |  |
Commercial real estate - investor | $ | 12,478 |  |  | $ | 19,761 |  |  | $ | 21,507 |  |  | $ | 20,820 |  |  | $ | 20,723 |
Commercial real estate - owner-occupied | 4,368 |  |  | 4,081 |  |  | 3,355 |  |  | 351 |  |  | 240 |
Commercial and industrial | 122 |  |  | 434 |  |  | 567 |  |  | 304 |  |  | 1,120 |
Residential real estate | 9,108 |  |  | 7,213 |  |  | 7,181 |  |  | 5,542 |  |  | 5,624 |
Other consumer | 2,063 |  |  | 1,933 |  |  | 2,401 |  |  | 2,531 |  |  | 2,391 |
Total non-performing loans | $ | 28,139 |  |  | $ | 33,422 |  |  | $ | 35,011 |  |  | $ | 29,548 |  |  | $ | 30,098 |
Delinquent loans 30 to 89 days | $ | 15,458 |  |  | $ | 9,655 |  |  | $ | 17,534 |  |  | $ | 19,202 |  |  | $ | 20,591 |
Modifications to borrowers experiencing financial difficulty (2) |  |  |  |  |  |  |  |  |
Non-performing (included in total non-performing loans above) | $ | 8,409 |  |  | $ | 8,677 |  |  | $ | 9,075 |  |  | $ | 6,420 |  |  | $ | 6,679 |
Performing | 26,655 |  |  | 27,184 |  |  | 15,619 |  |  | 15,361 |  |  | 7,645 |
Total modifications to borrowers experiencing financial difficulty (2) | $ | 35,064 |  |  | $ | 35,861 |  |  | $ | 24,694 |  |  | $ | 21,781 |  |  | $ | 14,324 |
Allowance for loan credit losses | $ | 69,066 |  |  | $ | 68,839 |  |  | $ | 67,173 |  |  | $ | 67,137 |  |  | $ | 63,877 |
Allowance for loan credit losses as a percent of total loans receivable (3) | 0.69 | % |  | 0.69 | % |  | 0.66 | % |  | 0.66 | % |  | 0.63 | %
Allowance for loan credit losses as a percent of total non-performing loans (3) | 245.45 |  |  | 205.97 |  |  | 191.86 |  |  | 227.21 |  |  | 212.23 |
Non-performing loans as a percent of total loans receivable | 0.28 |  |  | 0.33 |  |  | 0.35 |  |  | 0.29 |  |  | 0.30 |
Non-performing assets as a percent of total assets | 0.21 |  |  | 0.25 |  |  | 0.26 |  |  | 0.22 |  |  | 0.22 |
Supplemental PCD and non-performing loans |  |  |  |  |  |  |  |  |
PCD loans, net of allowance for loan credit losses | $ | 15,323 |  |  | $ | 16,058 |  |  | $ | 16,700 |  |  | $ | 16,122 |  |  | $ | 18,640 |
Non-performing PCD loans | 2,887 |  |  | 2,841 |  |  | 3,525 |  |  | 3,183 |  |  | 3,177 |
Delinquent PCD and non-performing loans 30 to 89 days | 1,279 |  |  | 1,188 |  |  | 2,088 |  |  | 1,516 |  |  | 13,007 |
PCD modifications to borrowers experiencing financial difficulty (2) | 760 |  |  | 759 |  |  | 764 |  |  | 771 |  |  | 750 |
Asset quality, excluding PCD loans (4) |  |  |  |  |  |  |  |  |
Non-performing loans | 25,252 |  |  | 30,581 |  |  | 31,486 |  |  | 26,365 |  |  | 26,921 |
Delinquent loans 30 to 89 days (excludes non-performing loans) | 14,179 |  |  | 8,467 |  |  | 15,446 |  |  | 17,686 |  |  | 7,584 |
Modifications to borrowers experiencing financial difficulty (2) | 34,304 |  |  | 35,102 |  |  | 23,930 |  |  | 21,010 |  |  | 13,574 |
Allowance for loan credit losses as a percent of total non-performing loans (3) | 273.51 | % |  | 225.10 | % |  | 213.34 | % |  | 254.64 | % |  | 237.28 | %
Non-performing loans as a percent of total loans receivable | 0.25 |  |  | 0.31 |  |  | 0.31 |  |  | 0.26 |  |  | 0.27 |
Non-performing assets as a percent of total assets | 0.19 |  |  | 0.23 |  |  | 0.23 |  |  | 0.19 |  |  | 0.20 |

(1)The quarters ended September 30, 2023 and 2024 include the addition and subsequent resolution of a single commercial relationship exposure of $7.2 million, which had life-to-date charge-offs of $10.0 million.
(2)Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(3)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.7 million, $6.1 million, $7.0 million, $7.5 million and $8.8 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
(4)All balances and ratios exclude PCD loans.
16

(continued)

NET LOAN RECOVERIES (CHARGE-OFFS) | For the Three Months Ended |
| September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30, |
| 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023 |
Net loan recoveries (charge-offs): |  |  |  |  |  |  |  |  |  |
Loan charge-offs (1) | $ | (124) |  |  | $ | (1,600) |  |  | $ | (441) |  |  | $ | (98) |  |  | $ | (8,379) |  |
Recoveries on loans | 212 |  |  | 148 |  |  | 92 |  |  | 63 |  |  | 108 |  |
Net loan recoveries (charge-offs) | $ | 88 |  |  | $ | (1,452) |  |  | $ | (349) |  |  | $ | (35) |  |  | $ | (8,271) |  |
Net loan recoveries (charge-offs) to average total loans (annualized) | NM* |  | 0.06 | % |  | 0.01 | % |  | — | % |  | 0.33 | % |
Net loan recoveries (charge-offs) detail: |  |  |  |  |  |  |  |  |  |
Commercial | $ | 129 |  |  | $ | (1,576) |  |  | $ | (35) |  |  | $ | 9 |  |  | $ | (8,332) |  |
Residential real estate | (6) |  |  | 87 |  |  | 66 |  |  | 9 |  |  | 17 |  |
Other consumer | (35) |  |  | 37 |  |  | (380) |  |  | (53) |  |  | 44 |  |
Net loan recoveries (charge-offs) | $ | 88 |  |  | $ | (1,452) |  |  | $ | (349) |  |  | $ | (35) |  |  | $ | (8,271) |  |

(1)The three months ended June 30, 2024 and September 30, 2023 includes charge-offs related to a single commercial real estate relationship of $1.6 million and $8.4 million, respectively.
* Not meaningful as amounts are net loan recoveries.
17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME

| For the Three Months Ended
| September 30, 2024 |  | June 30, 2024 |  | September 30, 2023
(dollars in thousands) | Average Balance |  | Interest |  | Average Yield/ Cost (1) |  | Average Balance |  | Interest |  | Average Yield/ Cost (1) |  | Average Balance |  | Interest |  | Average Yield/ Cost (1)
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning deposits and short-term investments | $ | 210,245 |  |  | $ | 2,971 |  |  | 5.62 | % |  | $ | 132,574 |  |  | $ | 1,770 |  |  | 5.37 | % |  | $ | 470,825 |  |  | $ | 6,440 |  |  | 5.43 | %
Securities (2) | 2,063,633 |  |  | 21,919 |  |  | 4.23 |  |  | 2,058,711 |  |  | 21,607 |  |  | 4.22 |  |  | 1,873,450 |  |  | 18,039 |  |  | 3.82 |
Loans receivable, net (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | 6,782,777 |  |  | 102,881 |  |  | 6.03 |  |  | 6,845,988 |  |  | 102,620 |  |  | 6.03 |  |  | 6,923,743 |  |  | 103,069 |  |  | 5.91 |
Residential real estate | 2,992,138 |  |  | 29,677 |  |  | 3.97 |  |  | 2,978,749 |  |  | 29,072 |  |  | 3.90 |  |  | 2,918,612 |  |  | 26,765 |  |  | 3.67 |
Other consumer | 242,942 |  |  | 4,077 |  |  | 6.68 |  |  | 246,024 |  |  | 4,357 |  |  | 7.12 |  |  | 252,126 |  |  | 4,097 |  |  | 6.45 |
Allowance for loan credit losses, net of deferred loan costs and fees | (59,063) |  |  | — |  |  | — |  |  | (58,270) |  |  | — |  |  | — |  |  | (53,959) |  |  | — |  |  | — |
Loans receivable, net | 9,958,794 |  |  | 136,635 |  |  | 5.46 |  |  | 10,012,491 |  |  | 136,049 |  |  | 5.46 |  |  | 10,040,522 |  |  | 133,931 |  |  | 5.30 |
Total interest-earning assets | 12,232,672 |  |  | 161,525 |  |  | 5.26 |  |  | 12,203,776 |  |  | 159,426 |  |  | 5.25 |  |  | 12,384,797 |  |  | 158,410 |  |  | 5.08 |
Non-interest-earning assets | 1,206,024 |  |  |  |  |  |  | 1,237,442 |  |  |  |  |  |  | 1,252,416 |  |  |  |  |
Total assets | $ | 13,438,696 |  |  |  |  |  |  | $ | 13,441,218 |  |  |  |  |  |  | $ | 13,637,213 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing checking | $ | 3,856,281 |  |  | 21,731 |  |  | 2.24 | % |  | $ | 3,862,060 |  |  | 21,043 |  |  | 2.19 | % |  | $ | 3,692,500 |  |  | 14,938 |  |  | 1.61 | %
Money market | 1,256,536 |  |  | 11,454 |  |  | 3.63 |  |  | 1,183,429 |  |  | 10,482 |  |  | 3.56 |  |  | 832,729 |  |  | 5,698 |  |  | 2.71 |
Savings | 1,088,926 |  |  | 2,218 |  |  | 0.81 |  |  | 1,164,203 |  |  | 2,604 |  |  | 0.90 |  |  | 1,391,811 |  |  | 3,311 |  |  | 0.94 |
Time deposits | 2,339,370 |  |  | 26,915 |  |  | 4.58 |  |  | 2,337,458 |  |  | 25,942 |  |  | 4.46 |  |  | 2,867,921 |  |  | 29,340 |  |  | 4.06 |
Total | 8,541,113 |  |  | 62,318 |  |  | 2.90 |  |  | 8,547,150 |  |  | 60,071 |  |  | 2.83 |  |  | 8,784,961 |  |  | 53,287 |  |  | 2.41 |
FHLB Advances | 757,535 |  |  | 9,140 |  |  | 4.80 |  |  | 711,801 |  |  | 8,746 |  |  | 4.94 |  |  | 701,343 |  |  | 8,707 |  |  | 4.93 |
Securities sold under agreements to repurchase | 75,871 |  |  | 491 |  |  | 2.57 |  |  | 72,305 |  |  | 478 |  |  | 2.66 |  |  | 76,620 |  |  | 261 |  |  | 1.35 |
Other borrowings | 499,839 |  |  | 7,357 |  |  | 5.86 |  |  | 541,266 |  |  | 7,868 |  |  | 5.85 |  |  | 317,210 |  |  | 5,159 |  |  | 6.45 |
Total borrowings | 1,333,245 |  |  | 16,988 |  |  | 5.07 |  |  | 1,325,372 |  |  | 17,092 |  |  | 5.19 |  |  | 1,095,173 |  |  | 14,127 |  |  | 5.12 |
Total interest-bearing liabilities | 9,874,358 |  |  | 79,306 |  |  | 3.20 |  |  | 9,872,522 |  |  | 77,163 |  |  | 3.14 |  |  | 9,880,134 |  |  | 67,414 |  |  | 2.71 |
Non-interest-bearing deposits | 1,634,743 |  |  |  |  |  |  | 1,626,165 |  |  |  |  |  |  | 1,841,198 |  |  |  |  |
Non-interest-bearing liabilities | 240,560 |  |  |  |  |  |  | 268,078 |  |  |  |  |  |  | 272,982 |  |  |  |  |
Total liabilities | 11,749,661 |  |  |  |  |  |  | 11,766,765 |  |  |  |  |  |  | 11,994,314 |  |  |  |  |
Stockholders’ equity | 1,689,035 |  |  |  |  |  |  | 1,674,453 |  |  |  |  |  |  | 1,642,899 |  |  |  |  |
Total liabilities and equity | $ | 13,438,696 |  |  |  |  |  |  | $ | 13,441,218 |  |  |  |  |  |  | $ | 13,637,213 |  |  |  |  |
Net interest income |  |  | $ | 82,219 |  |  |  |  |  |  | $ | 82,263 |  |  |  |  |  |  | $ | 90,996 |  |  |
Net interest rate spread (4) |  |  |  |  | 2.06 | % |  |  |  |  |  | 2.11 | % |  |  |  |  |  | 2.37 | %
Net interest margin (5) |  |  |  |  | 2.67 | % |  |  |  |  |  | 2.71 | % |  |  |  |  |  | 2.91 | %
Total cost of deposits (including non-interest-bearing deposits) |  |  |  |  | 2.44 | % |  |  |  |  |  | 2.37 | % |  |  |  |  |  | 1.99 | %

18

(continued)

| For the Nine Months Ended September 30,
| 2024 |  | 2023
(dollars in thousands) | Average Balance |  | Interest |  | Average Yield/ Cost (1) |  | Average Balance |  | Interest |  | Average Yield/ Cost (1)
Assets: |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |
Interest-earning deposits and short-term investments | $ | 168,822 |  |  | $ | 6,966 |  |  | 5.51 | % |  | $ | 304,184 |  |  | $ | 11,661 |  |  | 5.13 | %
Securities (2) | 2,073,552 |  |  | 65,782 |  |  | 4.24 |  |  | 1,919,660 |  |  | 51,124 |  |  | 3.56 |
Loans receivable, net (3) |  |  |  |  |  |  |  |  |  |  |
Commercial | 6,851,021 |  |  | 309,922 |  |  | 6.04 |  |  | 6,892,456 |  |  | 295,199 |  |  | 5.73 |
Residential real estate | 2,981,822 |  |  | 87,345 |  |  | 3.91 |  |  | 2,895,601 |  |  | 77,862 |  |  | 3.59 |
Other consumer | 245,777 |  |  | 12,538 |  |  | 6.81 |  |  | 257,063 |  |  | 11,694 |  |  | 6.08 |
Allowance for loan credit losses, net of deferred loan costs and fees | (58,825) |  |  | — |  |  | — |  |  | (52,626) |  |  | — |  |  | — |
Loans receivable, net | 10,019,795 |  |  | 409,805 |  |  | 5.46 |  |  | 9,992,494 |  |  | 384,755 |  |  | 5.15 |
Total interest-earning assets | 12,262,169 |  |  | 482,553 |  |  | 5.25 |  |  | 12,216,338 |  |  | 447,540 |  |  | 4.90 |
Non-interest-earning assets | 1,216,562 |  |  |  |  |  |  | 1,234,942 |  |  |  |  |
Total assets | $ | 13,478,731 |  |  |  |  |  |  | $ | 13,451,280 |  |  |  |  |
Liabilities and Stockholders’ Equity: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing checking | $ | 3,881,344 |  |  | 63,570 |  |  | 2.19 | % |  | $ | 3,757,417 |  |  | 33,171 |  |  | 1.18 | %
Money market | 1,177,612 |  |  | 31,107 |  |  | 3.53 |  |  | 744,689 |  |  | 11,136 |  |  | 2.00 |
Savings | 1,202,533 |  |  | 9,284 |  |  | 1.03 |  |  | 1,336,497 |  |  | 4,034 |  |  | 0.40 |
Time deposits | 2,363,542 |  |  | 78,283 |  |  | 4.42 |  |  | 2,388,299 |  |  | 64,210 |  |  | 3.59 |
Total | 8,625,031 |  |  | 182,244 |  |  | 2.82 |  |  | 8,226,902 |  |  | 112,551 |  |  | 1.83 |
FHLB Advances | 704,911 |  |  | 25,657 |  |  | 4.86 |  |  | 1,055,106 |  |  | 38,530 |  |  | 4.88 |
Securities sold under agreements to repurchase | 72,239 |  |  | 1,380 |  |  | 2.55 |  |  | 73,441 |  |  | 544 |  |  | 0.99 |
Other borrowings | 513,951 |  |  | 22,566 |  |  | 5.86 |  |  | 302,649 |  |  | 14,008 |  |  | 6.19 |
Total borrowings | 1,291,101 |  |  | 49,603 |  |  | 5.13 |  |  | 1,431,196 |  |  | 53,082 |  |  | 4.96 |
Total interest-bearing liabilities | 9,916,132 |  |  | 231,847 |  |  | 3.12 |  |  | 9,658,098 |  |  | 165,633 |  |  | 2.29 |
Non-interest-bearing deposits | 1,631,841 |  |  |  |  |  |  | 1,913,624 |  |  |  |  |
Non-interest-bearing liabilities | 251,878 |  |  |  |  |  |  | 253,014 |  |  |  |  |
Total liabilities | 11,799,851 |  |  |  |  |  |  | 11,824,736 |  |  |  |  |
Stockholders’ equity | 1,678,880 |  |  |  |  |  |  | 1,626,544 |  |  |  |  |
Total liabilities and equity | $ | 13,478,731 |  |  |  |  |  |  | $ | 13,451,280 |  |  |  |  |
Net interest income |  |  | $ | 250,706 |  |  |  |  |  |  | $ | 281,907 |  |  |
Net interest rate spread (4) |  |  |  |  | 2.13 | % |  |  |  |  |  | 2.61 | %
Net interest margin (5) |  |  |  |  | 2.73 | % |  |  |  |  |  | 3.09 | %
Total cost of deposits (including non-interest-bearing deposits) |  |  |  |  | 2.37 | % |  |  |  |  |  | 1.48 | %

(1) Average yields and costs are annualized.
(2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average interest-earning assets.
19

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)

|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Selected Financial Condition Data: |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 13,488,483 |  |  | $ | 13,321,755 |  |  | $ | 13,418,978 |  |  | $ | 13,538,253 |  |  | $ | 13,498,183 |
Debt securities available-for-sale, at estimated fair value |  | 911,753 |  |  | 721,484 |  |  | 744,944 |  |  | 753,892 |  |  | 453,208 |
Debt securities held-to-maturity, net of allowance for securities credit losses |  | 1,075,131 |  |  | 1,105,843 |  |  | 1,128,666 |  |  | 1,159,735 |  |  | 1,189,339 |
Equity investments |  | 95,688 |  |  | 104,132 |  |  | 103,201 |  |  | 100,163 |  |  | 97,908 |
Restricted equity investments, at cost |  | 98,545 |  |  | 92,679 |  |  | 85,689 |  |  | 93,766 |  |  | 82,484 |
Loans receivable, net of allowance for loan credit losses |  | 9,963,598 |  |  | 9,961,117 |  |  | 10,068,209 |  |  | 10,136,721 |  |  | 10,068,156 |
Deposits |  | 10,116,167 |  |  | 9,994,017 |  |  | 10,236,851 |  |  | 10,434,949 |  |  | 10,533,929 |
Federal Home Loan Bank advances |  | 891,860 |  |  | 789,337 |  |  | 658,436 |  |  | 848,636 |  |  | 606,056 |
Securities sold under agreements to repurchase and other borrowings |  | 501,090 |  |  | 504,490 |  |  | 492,520 |  |  | 269,604 |  |  | 279,164 |
Total stockholders’ equity |  | 1,694,508 |  |  | 1,676,669 |  |  | 1,665,837 |  |  | 1,661,945 |  |  | 1,637,604 |

|  | For the Three Months Ended,
|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Selected Operating Data: |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 161,525 |  |  | $ | 159,426 |  |  | $ | 161,602 |  |  | $ | 160,434 |  |  | $ | 158,410 |
Interest expense |  | 79,306 |  |  | 77,163 |  |  | 75,378 |  |  | 72,610 |  |  | 67,414 |
Net interest income |  | 82,219 |  |  | 82,263 |  |  | 86,224 |  |  | 87,824 |  |  | 90,996 |
Provision for credit losses |  | 517 |  |  | 3,114 |  |  | 591 |  |  | 3,153 |  |  | 10,283 |
Net interest income after provision for credit losses |  | 81,702 |  |  | 79,149 |  |  | 85,633 |  |  | 84,671 |  |  | 80,713 |
Other income (excluding activity related to debt and equity investments and sale of trust business) |  | 11,826 |  |  | 10,098 |  |  | 9,201 |  |  | 9,685 |  |  | 9,310 |
Net gain on equity investments |  | 1,420 |  |  | 887 |  |  | 1,923 |  |  | 2,176 |  |  | 1,452 |
Net gain on sale of trust business |  | 1,438 |  |  | — |  |  | 1,162 |  |  | — |  |  | — |
Operating expenses (excluding FDIC special assessment and merger related expenses) |  | 62,067 |  |  | 58,620 |  |  | 58,254 |  |  | 58,526 |  |  | 64,484 |
FDIC special assessment |  | — |  |  | — |  |  | 418 |  |  | 1,663 |  |  | — |
Merger related expenses |  | 1,669 |  |  | — |  |  | — |  |  | — |  |  | — |
Income before provision for income taxes |  | 32,650 |  |  | 31,514 |  |  | 39,247 |  |  | 36,343 |  |  | 26,991 |
Provision for income taxes |  | 7,464 |  |  | 7,082 |  |  | 10,637 |  |  | 8,591 |  |  | 6,459 |
Net income |  | 25,186 |  |  | 24,432 |  |  | 28,610 |  |  | 27,752 |  |  | 20,532 |
Net income (loss) attributable to non-controlling interest |  | 70 |  |  | 59 |  |  | (57) |  |  | 70 |  |  | (135) |
Net income attributable to OceanFirst Financial Corp. |  | $ | 25,116 |  |  | $ | 24,373 |  |  | $ | 28,667 |  |  | $ | 27,682 |  |  | $ | 20,667 |
Net income available to common stockholders |  | $ | 24,112 |  |  | $ | 23,369 |  |  | $ | 27,663 |  |  | $ | 26,678 |  |  | $ | 19,663 |
Diluted earnings per share |  | $ | 0.42 |  |  | $ | 0.40 |  |  | $ | 0.47 |  |  | $ | 0.46 |  |  | $ | 0.33 |
Net accretion/amortization of purchase accounting adjustments included in net interest income |  | $ | 741 |  |  | $ | 1,086 |  |  | $ | 921 |  |  | $ | 1,604 |  |  | $ | 1,745 |

20

(continued)

|  | At or For the Three Months Ended
|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Selected Financial Ratios and Other Data(1) (2): |  |  |  |  |  |  |  |  |  |
Performance Ratios (Annualized): |  |  |  |  |  |  |  |  |  |
Return on average assets (3) |  | 0.71 | % |  | 0.70 | % |  | 0.82 | % |  | 0.78 | % |  | 0.57 | %
Return on average tangible assets (3) (4) |  | 0.74 |  |  | 0.73 |  |  | 0.85 |  |  | 0.81 |  |  | 0.59 |
Return on average stockholders’ equity (3) |  | 5.68 |  |  | 5.61 |  |  | 6.65 |  |  | 6.41 |  |  | 4.75 |
Return on average tangible stockholders’ equity (3) (4) |  | 8.16 |  |  | 8.10 |  |  | 9.61 |  |  | 9.33 |  |  | 6.93 |
Return on average tangible common equity (3) (4) |  | 8.57 |  |  | 8.51 |  |  | 10.09 |  |  | 9.81 |  |  | 7.29 |
Stockholders’ equity to total assets |  | 12.56 |  |  | 12.59 |  |  | 12.41 |  |  | 12.28 |  |  | 12.13 |
Tangible stockholders’ equity to tangible assets (4) |  | 9.10 |  |  | 9.08 |  |  | 8.92 |  |  | 8.80 |  |  | 8.64 |
Tangible common equity to tangible assets (4) |  | 8.68 |  |  | 8.64 |  |  | 8.49 |  |  | 8.38 |  |  | 8.21 |
Net interest rate spread |  | 2.06 |  |  | 2.11 |  |  | 2.23 |  |  | 2.25 |  |  | 2.37 |
Net interest margin |  | 2.67 |  |  | 2.71 |  |  | 2.81 |  |  | 2.82 |  |  | 2.91 |
Operating expenses to average assets |  | 1.89 |  |  | 1.75 |  |  | 1.74 |  |  | 1.76 |  |  | 1.88 |
Efficiency ratio (5) |  | 65.77 |  |  | 62.86 |  |  | 59.56 |  |  | 60.38 |  |  | 63.37 |
Loan-to-deposit ratio |  | 99.10 |  |  | 100.30 |  |  | 98.90 |  |  | 97.70 |  |  | 96.10 |

|  | For the Nine Months Ended September 30,
|  | 2024 |  | 2023
Performance Ratios (Annualized): |  |  |  |
Return on average assets (3) |  | 0.74 | % |  | 0.73 | %
Return on average tangible assets (3) (4) |  | 0.77 |  |  | 0.76 |
Return on average stockholders’ equity (3) |  | 5.98 |  |  | 6.03 |
Return on average tangible stockholders’ equity (3) (4) |  | 8.62 |  |  | 8.85 |
Return on average tangible common equity (3) (4) |  | 9.05 |  |  | 9.31 |
Net interest rate spread |  | 2.13 |  |  | 2.61 |
Net interest margin |  | 2.73 |  |  | 3.09 |
Operating expenses to average assets |  | 1.79 |  |  | 1.88 |
Efficiency ratio (5) |  | 62.71 |  |  | 62.15 |

21

(continued)

|  | At or For the Three Months Ended
|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Trust and Asset Management: |  |  |  |  |  |  |  |  |  |
Wealth assets under administration and management (“AUA/M”) |  | $ | 152,797 |  |  | $ | 150,519 |  |  | $ | 236,891 |  |  | $ | 335,769 |  |  | $ | 336,913 |
Nest Egg AUA/M |  | 430,413 |  |  | 403,647 |  |  | 407,478 |  |  | 401,420 |  |  | 385,317 |
Total AUA/M |  | 583,210 |  |  | 554,166 |  |  | 644,369 |  |  | 737,189 |  |  | 722,230 |
Per Share Data: |  |  |  |  |  |  |  |  |  |
Cash dividends per common share |  | $ | 0.20 |  |  | $ | 0.20 |  |  | $ | 0.20 |  |  | $ | 0.20 |  |  | $ | 0.20 |
Book value per common share at end of period |  | 29.02 |  |  | 28.67 |  |  | 28.32 |  |  | 27.96 |  |  | 27.56 |
Tangible book value per common share at end of period (4) |  | 19.28 |  |  | 18.93 |  |  | 18.63 |  |  | 18.35 |  |  | 17.93 |
Common shares outstanding at end of period |  | 58,397,094 |  | 58,481,418 |  | 58,812,498 |  | 59,447,684 |  |  | 59,421,498
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 |  |  | 38 |
Quarterly Average Balances |  |  |  |  |  |  |  |  |  |
Total securities |  | $ | 2,063,633 |  |  | $ | 2,058,711 |  |  | $ | 2,098,421 |  |  | $ | 1,863,136 |  |  | $ | 1,873,450 |
Loans receivable, net |  | 9,958,794 |  |  | 10,012,491 |  |  | 10,088,771 |  |  | 10,089,161 |  |  | 10,040,522 |
Total interest-earning assets |  | 12,232,672 |  |  | 12,203,776 |  |  | 12,350,384 |  |  | 12,349,140 |  |  | 12,384,797 |
Total goodwill and core deposit intangible |  | 513,731 |  |  | 514,535 |  |  | 515,356 |  |  | 516,289 |  |  | 517,282 |
Total assets |  | 13,438,696 |  |  | 13,441,218 |  |  | 13,556,720 |  |  | 13,593,107 |  |  | 13,637,213 |
Time deposits |  | 2,339,370 |  |  | 2,337,458 |  |  | 2,414,063 |  |  | 2,596,706 |  |  | 2,867,921 |
Total deposits (including non-interest-bearing deposits) |  | 10,175,856 |  |  | 10,173,315 |  |  | 10,422,332 |  |  | 10,633,516 |  |  | 10,626,159 |
Total borrowings |  | 1,333,245 |  |  | 1,325,372 |  |  | 1,214,219 |  |  | 1,016,722 |  |  | 1,095,173 |
Total interest-bearing liabilities |  | 9,874,358 |  |  | 9,872,522 |  |  | 10,001,968 |  |  | 9,910,739 |  |  | 9,880,134 |
Non-interest bearing deposits |  | 1,634,743 |  |  | 1,626,165 |  |  | 1,634,583 |  |  | 1,739,499 |  |  | 1,841,198 |
Stockholders' equity |  | 1,689,035 |  |  | 1,674,453 |  |  | 1,673,040 |  |  | 1,650,699 |  |  | 1,642,899 |
Tangible stockholders’ equity (4) |  | 1,175,304 |  |  | 1,159,918 |  |  | 1,157,684 |  |  | 1,134,410 |  |  | 1,125,617 |
Quarterly Yields and Costs |  |  |  |  |  |  |  |  |  |
Total securities |  | 4.23 | % |  | 4.22 | % |  | 4.27 | % |  | 3.81 | % |  | 3.82 | %
Loans receivable, net |  | 5.46 |  |  | 5.46 |  |  | 5.46 |  |  | 5.40 |  |  | 5.30 |
Total interest-earning assets |  | 5.26 |  |  | 5.25 |  |  | 5.26 |  |  | 5.16 |  |  | 5.08 |
Time deposits |  | 4.58 |  |  | 4.46 |  |  | 4.24 |  |  | 4.13 |  |  | 4.06 |
Total cost of deposits (including non-interest-bearing deposits) |  | 2.44 |  |  | 2.37 |  |  | 2.31 |  |  | 2.22 |  |  | 1.99 |
Total borrowed funds |  | 5.07 |  |  | 5.19 |  |  | 5.14 |  |  | 5.13 |  |  | 5.12 |
Total interest-bearing liabilities |  | 3.20 |  |  | 3.14 |  |  | 3.03 |  |  | 2.91 |  |  | 2.71 |
Net interest spread |  | 2.06 |  |  | 2.11 |  |  | 2.23 |  |  | 2.25 |  |  | 2.37 |
Net interest margin |  | 2.67 |  |  | 2.71 |  |  | 2.81 |  |  | 2.82 |  |  | 2.91 |

(1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3) Ratios for each period are based on net income available to common stockholders.
(4) Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
22

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

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

23

(continued)

|  | For the Nine Months Ended September 30,
|  | 2024 |  | 2023
Core Earnings: |  |  |  |
Net income available to common stockholders (GAAP) |  | $ | 75,144 |  |  | $ | 73,335 |
Add (less) non-recurring and non-core items: |  |  |  |
Net (gain) loss on equity investments(1) |  | (4,230) |  |  | 1,300 |
Net loss on sale of investments(1) |  | — |  |  | 5,305 |
Net gain on sale of trust business |  | (2,600) |  |  | — |
FDIC special assessment |  | 418 |  |  | — |
Merger related expenses |  | 1,669 |  |  | 22 |
Branch consolidation expense, net |  | — |  |  | 70 |
Income tax expense (benefit) on items |  | 1,100 |  |  | (1,608) |
Core earnings (Non-GAAP) |  | $ | 71,501 |  |  | $ | 78,424 |
Income tax expense |  | $ | 25,183 |  |  | $ | 24,109 |
Provision for credit losses |  | 4,222 |  |  | 14,525 |
Less: income tax expense (benefit) on non-core items |  | 1,100 |  |  | (1,608) |
Core earnings PTPP (Non-GAAP) |  | $ | 99,806 |  |  | $ | 118,666 |
Core diluted earnings per share |  | $ | 1.22 |  |  | $ | 1.33 |
Core earnings PTPP diluted earnings per share |  | $ | 1.71 |  |  | $ | 2.01 |
Core Ratios (Annualized): |  |  |  |
Return on average assets |  | 0.71 | % |  | 0.78 | %
Return on average tangible stockholders’ equity |  | 8.20 |  |  | 9.46 |
Return on average tangible common equity |  | 8.61 |  |  | 9.96 |
Efficiency ratio |  | 63.49 |  |  | 60.79 |
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.

24

(continued)

|  | September 30, |  | June 30, |  | March 31, |  | December 31, |  | September 30,
|  | 2024 |  | 2024 |  | 2024 |  | 2023 |  | 2023
Tangible Equity: |  |  |  |  |  |  |  |  |  |
Total stockholders' equity |  | $ | 1,694,508 |  |  | $ | 1,676,669 |  |  | $ | 1,665,837 |  |  | $ | 1,661,945 |  |  | $ | 1,637,604 |
Less: |  |  |  |  |  |  |  |  |  |
Goodwill |  | 506,146 |  |  | 506,146 |  |  | 506,146 |  |  | 506,146 |  |  | 506,146 |
Core deposit intangible |  | 7,056 |  |  | 7,859 |  |  | 8,669 |  |  | 9,513 |  |  | 10,489 |
Tangible stockholders' equity |  | 1,181,306 |  |  | 1,162,664 |  |  | 1,151,022 |  |  | 1,146,286 |  |  | 1,120,969 |
Less: |  |  |  |  |  |  |  |  |  |
Preferred stock |  | 55,527 |  |  | 55,527 |  |  | 55,527 |  |  | 55,527 |  |  | 55,527 |
Tangible common equity |  | $ | 1,125,779 |  |  | $ | 1,107,137 |  |  | $ | 1,095,495 |  |  | $ | 1,090,759 |  |  | $ | 1,065,442 |
Tangible Assets: |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 13,488,483 |  |  | $ | 13,321,755 |  |  | $ | 13,418,978 |  |  | $ | 13,538,253 |  |  | $ | 13,498,183 |
Less: |  |  |  |  |  |  |  |  |  |
Goodwill |  | 506,146 |  |  | 506,146 |  |  | 506,146 |  |  | 506,146 |  |  | 506,146 |
Core deposit intangible |  | 7,056 |  |  | 7,859 |  |  | 8,669 |  |  | 9,513 |  |  | 10,489 |
Tangible assets |  | $ | 12,975,281 |  |  | $ | 12,807,750 |  |  | $ | 12,904,163 |  |  | $ | 13,022,594 |  |  | $ | 12,981,548 |
Tangible stockholders' equity to tangible assets |  | 9.10 | % |  | 9.08 | % |  | 8.92 | % |  | 8.80 | % |  | 8.64 | %
Tangible common equity to tangible assets |  | 8.68 | % |  | 8.64 | % |  | 8.49 | % |  | 8.38 | % |  | 8.21 | %

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