EX-99.1 2 ex991-earningsreleasejune2.htm EX-99.1 Document

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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. 27507
Email: pbarrett@oceanfirst.com


FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS
    RED BANK, NEW JERSEY, July 18, 2024 - OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $23.4 million, or $0.40 per diluted share, for the three months ended June 30, 2024, a decrease from $26.8 million, or $0.45 per diluted share, for the corresponding prior year period, and $27.7 million, or $0.47 per diluted share, for the prior linked quarter. For the six months ended June 30, 2024, the Company reported net income available to common stockholders of $51.0 million, or $0.87 per diluted share, a decrease from $53.7 million, or $0.91 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Six Months Ended,
Performance Ratios (Annualized):June 30,March 31,June 30,June 30,June 30,
20242024202320242023
Return on average assets 0.70 %0.82 %0.80 %0.76 %0.81 %
Return on average stockholders’ equity5.61 6.65 6.61 6.13 6.69 
Return on average tangible stockholders’ equity (a)
8.10 9.61 9.70 8.86 9.84 
Return on average tangible common equity (a)
8.51 10.09 10.21 9.30 10.37 
Efficiency ratio62.86 59.56 62.28 61.17 61.53 
Net interest margin2.71 2.81 3.02 2.76 3.17 
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.


Core earnings1 for the three and six months ended June 30, 2024 were $22.7 million and $48.3 million, respectively, or $0.39 and $0.83 per diluted share, a decrease from $27.2 million and $59.9 million, or $0.46 and $1.01 per diluted share, for the corresponding prior year periods, and a decrease from $25.6 million, or $0.44 per diluted share, for the prior linked quarter.
Core earnings PTPP1 for the three and six months ended June 30, 2024 was $32.7 million and $68.9 million, respectively, or $0.56 and $1.18 per diluted share, as compared to $37.6 million and $83.7 million, or $0.64 and $1.42 per diluted share, for the corresponding prior year periods, and $36.2 million, or $0.62 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,For the Six Months Ended,
June 30,March 31,June 30,June 30,June 30,
Core Ratios1 (Annualized):
20242024202320242023
Return on average assets 0.68 %0.76 %0.81 %0.72 %0.90 %
Return on average tangible stockholders’ equity7.86 8.91 9.84 8.38 10.98 
Return on average tangible common equity8.26 9.36 10.36 8.81 11.56 
Efficiency ratio63.47 61.05 61.94 62.24 59.13 
Core diluted earnings per share$0.39 $0.44 $0.46 $0.83 $1.01 
Core PTPP diluted earnings per share 0.56 0.62 0.64 1.18 1.42 

Key developments for the recent quarter are described below:
•Asset Quality: Asset quality metrics remain strong as criticized and classified assets, non-performing loans, and loans 30 to 89 days past due as a percentage of total loans receivable were 1.42%, 0.33%, and 0.10%, respectively. These metrics continue to reflect strong credit performance and remain low compared to pre-pandemic levels.
1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP or Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses. Refer to “Explanation of Non-GAAP Financial Measures”, “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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•Capital Accretion: Common equity tier 1 capital ratio2, book value and tangible book value per share were 11.2%, $28.67 and $18.93, respectively, and increased approximately 20 basis points, $0.35 and $0.30 from the prior linked quarter.3
•Share repurchases: The Company repurchased 338,087 shares totaling $5.0 million. The Company has 1,638,524 shares available for repurchase under the authorized repurchase program.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our current quarter results reflected prudent balance sheet management and expense discipline. As rates are elevated and the yield curve remains inverted, net interest margin compressed during the quarter, but the pace of margin compression is slowing. Additionally, our credit quality continues to remain robust, we grew capital, and continued share repurchases during the quarter.” Mr. Maher added, “The Company is well positioned to bolster shareholder value through growth in the second half of the year.”
The Company’s Board of Directors declared its 110th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 16, 2024 to common stockholders of record on August 5, 2024. The Company’s Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on August 15, 2024 to preferred stockholders of record on July 31, 2024.
2 Estimated.
3 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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Results of Operations
The current quarter net interest income and margin were impacted by a mix-shift to and repricing of higher cost funding. Deposit betas increased modestly to 42%, from 40% in the prior linked quarter.4 Additionally, the current quarter provision for credit losses includes the impact of an additional $1.6 million charge-off on the single commercial real estate relationship that was previously moved to non-accrual and partially charged-off in 2023. The collateral related to the noted credit is currently under an agreement to sell, which is expected to occur during the third quarter.
Net Interest Income and Margin
Three months ended June 30, 2024 vs. June 30, 2023
Net interest income decreased to $82.3 million, from $92.1 million, primarily reflecting the net impact of the higher interest rate environment.
Net interest margin decreased to 2.71%, from 3.02%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05%, respectively. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets.
Average interest-earning assets decreased by $46.3 million due to balance sheet contraction while the average yield for interest-earning assets increased to 5.25%, from 4.91%.
The cost of average interest-bearing liabilities increased to 3.14%, from 2.39%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 1.52%. Average interest-bearing liabilities increased by $149.6 million, primarily due to an increase in total deposits, partly offset by a decrease in total borrowings.
4 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021).
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Six months ended June 30, 2024 vs. June 30, 2023
Net interest income decreased to $168.5 million, from $190.9 million, reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.76%, from 3.17%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.
Average interest-earning assets increased by $146.4 million, primarily driven by securities growth of $135.4 million, while the average yield increased to 5.25%, from 4.80%.
The cost of average interest-bearing liabilities increased to 3.09%, from 2.08%. The total cost of deposits (including non-interest bearing deposits) increased to 2.34%, from 1.21%. Average interest-bearing liabilities increased by $392.0 million. The drivers for the three month periods, described above, were also the drivers for the six month periods.
Three months ended June 30, 2024 vs. March 31, 2024
Net interest income decreased by $4.0 million, primarily due to an increase in cost of funds and lower average-interest earning assets. Net interest margin decreased to 2.71%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.
Average interest-earning assets decreased by $146.6 million, primarily due to a decrease in loans. The yield on average interest-earning assets decreased to 5.25%, from 5.26%.
The total cost of average interest-bearing liabilities increased to 3.14%, from 3.03%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 2.31%. Average interest-bearing liabilities decreased by $129.4 million, primarily due to decreases in brokered time deposits and high yield savings accounts, partly offset by an increase in borrowings.
Provision for Credit Losses
    Provision for credit losses for the three and six months ended June 30, 2024 was $3.1 million and $3.7 million, respectively, as compared to $1.2 million and $4.2 million for the corresponding prior year periods, and $591,000 in the prior linked quarter. The current quarter provision was driven by the
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additional charge-off previously noted and changes in the external macro-economic forecasts, partly offset by lower loan balances.
Net loan charge-offs were $1.5 million and $1.8 million for the three and six months ended June 30, 2024, respectively, as compared to net loan charge-offs of $123,000 and $76,000 for the three and six months ended June 30, 2023. The current quarter includes the impact of an additional $1.6 million charge-off related to a single commercial real estate relationship, as previously noted. Net loan charge-offs were $349,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.
Non-interest Income
Three months ended June 30, 2024 vs. June 30, 2023    
Other income increased to $11.0 million, as compared to $8.9 million. Other income was favorably impacted by non-core operations related to net gains/losses on equity investments of $887,000 for the current quarter, and adversely impacted by non-core operations of $559,000 for the prior year quarter.
Excluding non-core operations, other income increased by $611,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $544,000 and net gain on sale of loans of $387,000, partially offset by a decrease in fees and service charges of $587,000 on lower title activity and retail deposit fees.
Six months ended June 30, 2024 vs. June 30, 2023
Other income increased to $23.3 million, as compared to $11.0 million. The current period was favorably impacted by non-core operations of $4.0 million related to net gains on equity investments and sale of a portion of the Company’s trust business. The prior year was adversely impacted by non-core operations of $8.1 million, primarily related to losses on sale of investments.
Excluding non-core operations, other income increased by $241,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $1.1 million, which included one-time death benefits in the current period, and net gain on sale of loans of $724,000. This was partially
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offset by a decrease in fees and service charges of $1.3 million, which was driven by the same factors as noted above.
Three months ended June 30, 2024 vs. March 31, 2024
Other income in the prior linked quarter was $12.3 million and was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and sale of a portion of the Company’s trust business. Excluding non-core operations, other income increased by $897,000, primarily due to an increase in fees and service charges of $542,000, which was driven by higher title activity.
Non-interest Expense
Three months ended June 30, 2024 vs. June 30, 2023
Operating expenses decreased $4.3 million to $58.6 million, from $62.9 million. The primary drivers were decreases in professional fees of $2.9 million and compensation and employee benefits expenses of $1.1 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.
Six months ended June 30, 2024 vs. June 30, 2023
Operating expenses decreased to $117.3 million, as compared to $124.2 million. Operating expenses were adversely impacted by an FDIC special assessment in the current year of $418,000, and merger related and net branch consolidation expenses of $92,000 in the prior year period.
Excluding non-core operations, operating expenses decreased by $7.3 million. The primary drivers were decreases in professional fees of $5.3 million and compensation and employee benefits expenses of $2.2 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.
Three months ended June 30, 2024 vs. March 31, 2024
Operating expenses in the prior linked quarter were $58.7 million and included non-core operations of $418,000, related to an FDIC special assessment. Excluding non-core operations,
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operating expenses increased by $366,000.
Income Tax Expense
The provision for income taxes was $7.1 million and $17.7 million for the three and six months ended June 30, 2024, respectively, as compared to $9.0 million and $17.7 million for the same prior year periods, and $10.6 million for the prior linked quarter. The effective tax rate was 22.5% and 25.0% for the three and six months ended June 30, 2024, respectively, as compared to 24.4% and 24.0% for the same prior year periods, and 27.1% for the prior linked quarter. The prior linked quarter and current year’s effective tax rates were negatively impacted by 3.0% and 1.6%, respectively, due to a non-recurring write-off of a deferred tax asset of $1.2 million.
Financial Condition
June 30, 2024 vs. December 31, 2023
Total assets decreased by $216.5 million to $13.32 billion, from $13.54 billion, primarily due to decreases in loans and debt securities. Total loans decreased by $175.3 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $165.3 million driven by loan payoffs and lower loan originations. The loan pipeline increased by $76.1 million to $259.1 million from $183.0 million. Held-to-maturity debt securities decreased by $53.9 million to $1.11 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale decreased $32.4 million to $721.5 million, from $753.9 million, primarily due to principal reductions and maturities. Other assets increased by $23.3 million to $203.0 million, from $179.7 million, primarily due to an increase in the market values of derivatives associated with customer interest rate swap programs.
Total liabilities decreased by $231.2 million to $11.65 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $440.9 million to $9.99 billion, from $10.43 billion, primarily due to decreases in high-yield savings accounts of $283.1 million and interest bearing deposits of $243.9 million. Time deposits decreased to $2.37 billion, from $2.45
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billion, representing 23.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits which decreased by $229.9 million, offset by increases in retail time deposits of $161.7 million. The loan-to-deposit ratio was 100.3%, as compared to 97.7%. Federal Home Loan Bank (“FHLB”) advances decreased by $59.3 million to $789.3 million, from $848.6 million due to a mix shift in funding sources to other borrowings, which increased by $228.0 million to $424.5 million, from $196.5 million, as a result of lower cost funding availability.
Other liabilities increased by $31.4 million to $332.1 million, from $300.7 million, primarily due to an increase in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.
Capital levels remain strong and in excess of “well-capitalized” regulatory levels at June 30, 2024, including the Company’s estimated common equity tier one capital ratio which increased to 11.2%, up approximately 35 basis points from December 31, 2023.
    Total stockholders’ equity increased to $1.68 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of share repurchases and dividends. For the six months ended June 30, 2024, the Company repurchased 1,295,914 shares totaling $20.1 million representing a weighted average cost of $15.35. The Company had 1,638,524 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $3.7 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
The Company actively monitors its goodwill as the challenging economic environment persists and continues to pressure the Company’s stock price and industry valuations. The Company customarily performs its annual goodwill impairment assessment during the third quarter.
The Company’s tangible common equity3 increased by $11.6 million to $1.11 billion. The Company’s stockholders’ equity to assets ratio was 12.59% at June 30, 2024, and tangible common
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equity to tangible assets ratio increased by 26 basis points during the quarter to 8.64%, primarily due to the drivers described above.
Book value per common share increased to $28.67, as compared to $27.96. Tangible book value per common share3 increased to $18.93, as compared to $18.35.

Asset Quality
June 30, 2024 vs. December 31, 2023
Overall asset quality metrics remained stable. The Company’s non-performing loans increased to $33.4 million from $29.5 million and represented 0.33% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 205.97%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $9.7 million, from $19.2 million. Criticized and classified assets decreased to $142.6 million, from $146.9 million. The Company’s allowance for loan credit losses was 0.69% of total loans, as compared to 0.66%. Refer to` “Provision for Credit Losses” section for further discussion.
The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $30.6 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 225.10%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $8.5 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $75.0 million, or 0.75% of total loans, as compared to $74.7 million, or 0.73% of total loans.
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Explanation of Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, July 19, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 619002. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 217614, from one hour after the end of the call until August 16, 2024. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
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    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

Forward-Looking Statements
    
In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company’s rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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

June 30,March 31,December 31,June 30,
2024202420232023
(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and due from banks$181,198 $130,422 $153,718 $457,747 
Debt securities available-for-sale, at estimated fair value721,484 744,944 753,892 452,016 
Debt securities held-to-maturity, net of allowance for securities credit losses of $958 at June 30, 2024, $1,058 at March 31, 2024, $1,133 at December 31, 2023 and $964 at June 30, 2023 (estimated fair value of $1,003,850 at June 30, 2024, $1,029,965 at March 31, 2024, $1,068,438 at December 31, 2023 and $1,109,756 at June 30, 2023)
1,105,843 1,128,666 1,159,735 1,222,507 
Equity investments104,132 103,201 100,163 96,452 
Restricted equity investments, at cost92,679 85,689 93,766 105,305 
Loans receivable, net of allowance for loan credit losses of $68,839 at June 30, 2024, $67,173 at March 31, 2024, $67,137 at December 31, 2023 and $61,791 at June 30, 2023
9,961,117 10,068,209 10,136,721 10,030,106 
Loans held-for-sale2,062 4,702 5,166 4,200 
Interest and dividends receivable50,976 52,502 51,874 47,933 
Premises and equipment, net117,392 119,211 121,372 124,139 
Bank owned life insurance267,867 266,615 266,498 263,836 
Assets held for sale28 28 28 3,608 
Goodwill506,146 506,146 506,146 506,146 
Core deposit intangible7,859 8,669 9,513 11,476 
Other assets202,972 199,974 179,661 213,432 
Total assets$13,321,755 $13,418,978 $13,538,253 $13,538,903 
Liabilities and Stockholders’ Equity
Deposits$9,994,017 $10,236,851 $10,434,949 $10,158,337 
Federal Home Loan Bank advances789,337 658,436 848,636 1,091,666 
Securities sold under agreements to repurchase with customers80,000 66,798 73,148 74,452 
Other borrowings424,490 425,722 196,456 195,925 
Advances by borrowers for taxes and insurance25,168 28,187 22,407 27,839 
Other liabilities332,074 337,147 300,712 364,401 
Total liabilities11,645,086 11,753,141 11,876,308 11,912,620 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,675,885 1,665,112 1,661,163 1,625,435 
Non-controlling interest784 725 782 848 
Total stockholders’ equity1,676,669 1,665,837 1,661,945 1,626,283 
Total liabilities and stockholders’ equity$13,321,755 $13,418,978 $13,538,253 $13,538,903 













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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Six Months Ended,
June 30,March 31,June 30,June 30,June 30,
20242024202320242023
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$136,049 $137,121 $129,104 $273,170 $250,824 
Debt securities19,039 19,861 14,320 38,900 28,606 
Equity investments and other4,338 4,620 6,672 8,958 9,700 
Total interest income159,426 161,602 150,096 321,028 289,130 
Interest expense:
Deposits60,071 59,855 37,934 119,926 59,264 
Borrowed funds17,092 15,523 20,053 32,615 38,955 
Total interest expense77,163 75,378 57,987 152,541 98,219 
Net interest income82,263 86,224 92,109 168,487 190,911 
Provision for credit losses3,114 591 1,229 3,705 4,242 
Net interest income after provision for credit losses79,149 85,633 90,880 164,782 186,669 
Other income:
Bankcard services revenue1,571 1,416 1,544 2,987 2,874 
Trust and asset management revenue419 526 645 945 1,257 
Fees and service charges5,015 4,473 5,602 9,488 10,761 
Net gain on sales of loans420 357 33 777 53 
Net gain (loss) on equity investments887 1,923 (559)2,810 (7,360)
Income from bank owned life insurance1,726 1,862 1,182 3,588 2,463 
Commercial loan swap income241 138 — 379 701 
Other706 1,591 481 2,297 252 
Total other income10,985 12,286 8,928 23,271 11,001 
Operating expenses:
Compensation and employee benefits33,136 32,759 34,222 65,895 68,142 
Occupancy5,175 5,199 5,265 10,374 10,504 
Equipment1,068 1,130 1,101 2,198 2,306 
Marketing1,175 990 961 2,165 1,943 
Federal deposit insurance and regulatory assessments2,685 3,135 2,465 5,820 4,214 
Data processing6,018 5,956 6,165 11,974 12,319 
Check card processing1,075 1,050 1,214 2,125 2,495 
Professional fees2,161 2,732 5,083 4,893 10,181 
Amortization of core deposit intangible810 844 994 1,654 2,021 
Branch consolidation expense, net— — — — 70 
Merger related expenses— — — — 22 
Other operating expense5,317 4,877 5,460 10,194 10,022 
Total operating expenses58,620 58,672 62,930 117,292 124,239 
Income before provision for income taxes31,514 39,247 36,878 70,761 73,431 
Provision for income taxes7,082 10,637 8,996 17,719 17,650 
Net income24,432 28,610 27,882 53,042 55,781 
Net income (loss) attributable to non-controlling interest59 (57)85 2 101 
Net income attributable to OceanFirst Financial Corp.24,373 28,667 27,797 53,040 55,680 
Dividends on preferred shares1,004 1,004 1,004 2,008 2,008 
Net income available to common stockholders$23,369 $27,663 $26,793 $51,032 $53,672 
Basic earnings per share$0.40 $0.47 $0.45 $0.87 $0.91 
Diluted earnings per share$0.40 $0.47 $0.45 $0.87 $0.91 
Average basic shares outstanding58,356 58,789 59,147 58,489 58,988 
Average diluted shares outstanding58,357 58,791 59,153 58,490 59,038 

14

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Commercial:
Commercial real estate - investor$5,324,994 $5,322,755 $5,353,974 $5,334,279 $5,319,686 
Commercial real estate - owner-occupied857,710 914,582 943,891 957,216 981,618 
Commercial and industrial616,400 677,176 666,532 652,119 620,284 
Total commercial6,799,104 6,914,513 6,964,397 6,943,614 6,921,588 
Consumer:
Residential real estate2,977,698 2,965,276 2,979,534 2,928,259 2,906,556 
Home equity loans and lines and other consumer ("other consumer")242,526 245,859 250,664 251,698 255,486 
Total consumer3,220,224 3,211,135 3,230,198 3,179,957 3,162,042 
Total loans10,019,328 10,125,648 10,194,595 10,123,571 10,083,630 
Deferred origination costs (fees), net10,628 9,734 9,263 8,462 8,267 
Allowance for loan credit losses(68,839)(67,173)(67,137)(63,877)(61,791)
Loans receivable, net$9,961,117 $10,068,209 $10,136,721 $10,068,156 $10,030,106 
Mortgage loans serviced for others$104,136 $89,555 $68,217 $52,796 $50,820 
At June 30, 2024 Average Yield
Loan pipeline (1):
Commercial7.88 %$166,206 $66,167 $124,707 $50,756 $39,164 
Residential real estate6.96 80,330 57,340 49,499 66,682 58,022 
Other consumer8.81 12,586 13,030 8,819 13,795 18,621 
Total7.64 %$259,122 $136,537 $183,025 $131,233 $115,807 
For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Average Yield
Loan originations:
Commercial7.98 %$56,053 $123,010 $94,294 $90,263 $197,732 
Residential real estate6.74 121,388 78,270 113,227 92,299 100,542 
Other consumer8.99 16,970 11,405 16,971 17,019 22,487 
Total7.29 %$194,411 $212,685 $224,492 $199,581 $320,761 
Loans sold$45,045 

$29,965 $20,138 $15,404 $18,664 
(1)Loan pipeline includes loans approved but not funded.

DEPOSITSAt
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Type of Account
Non-interest-bearing$1,632,521 $1,639,828 $1,657,119 $1,827,381 $1,854,136 
Interest-bearing checking3,667,837 3,865,699 3,911,766 3,708,874 3,537,834 
Money market1,210,312 1,150,979 1,021,805 860,025 770,440 
Savings1,115,688 1,260,309 1,398,837 1,484,000 1,229,897 
Time deposits (1)
2,367,659 2,320,036 2,445,422 2,653,649 2,766,030 
  Total deposits$9,994,017 $10,236,851 $10,434,949 $10,533,929 $10,158,337 
(1)Includes brokered time deposits of $401.6 million, $543.4 million, $631.5 million, $995.5 million, and $1.42 billion at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY (1)
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Non-performing loans:
Commercial real estate - investor$19,761 $21,507 $20,820 $20,723 $13,000 
Commercial real estate - owner-occupied4,081 3,355 351 240 565 
Commercial and industrial434 567 304 1,120 199 
Residential real estate7,213 7,181 5,542 5,624 6,174 
Other consumer1,933 2,401 2,531 2,391 2,820 
Total non-performing loans$33,422 $35,011 $29,548 $30,098 $22,758 
Delinquent loans 30 to 89 days$9,655 $17,534 $19,202 $20,591 $3,136 
Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)$8,677 $9,075 $6,420 $6,679 $6,882 
Performing27,184 15,619 15,361 7,645 7,516 
Total modifications to borrowers experiencing financial difficulty (2)
$35,861 $24,694 $21,781 $14,324 $14,398 
Allowance for loan credit losses$68,839 $67,173 $67,137 $63,877 $61,791 
Allowance for loan credit losses as a percent of total loans receivable (3)
0.69 %0.66 %0.66 %0.63 %0.61 %
Allowance for loan credit losses as a percent of total non-performing loans (3)
205.97 191.86 227.21 212.23 271.51 
Non-performing loans as a percent of total loans receivable0.33 0.35 0.29 0.30 0.23 
Non-performing assets as a percent of total assets0.25 0.26 0.22 0.22 0.17 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$16,058 $16,700 $16,122 $18,640 $18,872 
Non-performing PCD loans2,841 3,525 3,183 3,177 3,171 
Delinquent PCD and non-performing loans 30 to 89 days1,188 2,088 1,516 13,007 1,976 
PCD modifications to borrowers experiencing financial difficulty (2)
759 764 771 750 755 
Asset quality, excluding PCD loans (4)
Non-performing loans30,581 31,486 26,365 26,921 19,587 
Delinquent loans 30 to 89 days (excludes non-performing loans)
8,467 15,446 17,686 7,584 1,160 
Modifications to borrowers experiencing financial difficulty (2)
35,102 23,930 21,010 13,574 13,643 
Allowance for loan credit losses as a percent of total non-performing loans (3)
225.10 %213.34 %254.64 %237.28 %315.47 %
Non-performing loans as a percent of total loans receivable
0.31 0.31 0.26 0.27 0.19 
Non-performing assets as a percent of total assets0.23 0.23 0.19 0.20 0.14 
(1)At June 30, 2024, non-performing loans included the remaining exposure of $7.2 million on the single commercial real estate relationship discussed in “Results of Operations”.
(2)Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(3)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $6.1 million, $7.0 million, $7.5 million, $8.8 million and $9.8 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.
(4)All balances and ratios exclude PCD loans.










16

(continued)

NET LOAN CHARGE-OFFSFor the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Net loan charge-offs:
Loan charge-offs (1)
$(1,600)$(441)$(98)$(8,379)$(206)
Recoveries on loans148 92 63 108 83 
Net loan charge-offs$(1,452)

$(349)$(35)$(8,271)$(123)
Net loan charge-offs to average total loans (annualized)0.06 %0.01 %— %0.33 %— %
Net loan charge-offs detail:
Commercial$(1,576)$(35)$9 $(8,332)$(117)
Residential real estate87 66 9 17 9 
Other consumer37 (380)(53)44 (15)
Net loan charge-offs$(1,452)$(349)$(35)$(8,271)$(123)
(1)The three months ended June 30, 2024 and September 30, 2023 includes charge-offs related to a single commercial real estate relationship of $1.6 million and $8.4 million, respectively.

17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
June 30, 2024March 31, 2024June 30, 2023
(dollars in thousands)Average
Balance		Interest
Average
Yield/
Cost (1)
Average
Balance		Interest
Average
Yield/
Cost (1)
Average
Balance		Interest
Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$132,574 $1,770 5.37 %$163,192 $2,226 5.49 %$308,238 $4,283 5.57 %
Securities (2)
2,058,711 21,607 4.22 2,098,421 22,255 4.27 1,931,032 16,709 3.47 
Loans receivable, net (3)
Commercial6,845,988 102,620 6.03 6,925,048 104,421 6.06 6,912,698 99,350 5.76 
Residential real estate2,978,749 29,072 3.90 2,974,468 28,596 3.85 2,895,629 25,936 3.58 
Other consumer246,024 4,357 7.12 248,396 4,104 6.65 255,785 3,818 5.99 
Allowance for loan credit losses, net of deferred loan costs and fees(58,270)— — (59,141)— — (53,327)— — 
Loans receivable, net10,012,491 136,049 5.46 10,088,771 137,121 5.46 10,010,785 129,104 5.17 
Total interest-earning assets12,203,776 159,426 5.25 12,350,384 161,602 5.26 12,250,055 150,096 4.91 
Non-interest-earning assets1,237,442 1,206,336 1,217,666 
Total assets$13,441,218 $13,556,720 $13,467,721 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,862,060 21,043 2.19 %$3,925,965 20,795 2.13 %$3,718,289 11,964 1.29 %
Money market1,183,429 10,482 3.56 1,092,003 9,172 3.38 694,311 3,678 2.12 
Savings1,164,203 2,604 0.90 1,355,718 4,462 1.32 1,248,312 389 0.12 
Time deposits2,337,458 25,942 4.46 2,414,063 25,426 4.24 2,458,872 21,903 3.57 
Total8,547,150 60,071 2.83 8,787,749 59,855 2.74 8,119,784 37,934 1.87 
FHLB Advances711,801 8,746 4.94 644,818 7,771 4.85 1,246,914 15,406 4.96 
Securities sold under agreements to repurchase72,305 478 2.66 68,500 411 2.41 71,752 192 1.07 
Other borrowings (4)
541,266 7,868 5.85 500,901 7,341 5.89 284,460 4,455 6.28 
Total borrowings1,325,372 17,092 5.19 1,214,219 15,523 5.14 1,603,126 20,053 5.02 
Total interest-bearing liabilities9,872,522 77,163 3.14 10,001,968 75,378 3.03 9,722,910 57,987 2.39 
Non-interest-bearing deposits1,626,165 1,634,583 1,873,226 
Non-interest-bearing liabilities(4)
268,078 247,129 244,892 
Total liabilities11,766,765 11,883,680 11,841,028 
Stockholders’ equity1,674,453 1,673,040 1,626,693 
Total liabilities and equity$13,441,218 $13,556,720 $13,467,721 
Net interest income$82,263 $86,224 $92,109 
Net interest rate spread (5)
2.11 %2.23 %2.52 %
Net interest margin (6)
2.71 %2.81 %3.02 %
Total cost of deposits (including non-interest-bearing deposits)2.37 %2.31 %1.52 %

18

(continued)
For the Six Months Ended June 30,
 20242023
(dollars in thousands)Average
Balance		Interest
Average
Yield/
Cost (1)
Average
Balance		Interest
Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$147,883 $3,995 5.43 %$219,482 $5,221 4.80 %
Securities (2)
2,078,566 43,863 4.24 1,943,148 33,085 3.43 
Loans receivable, net (3)
Commercial6,885,518 207,041 6.05 6,876,553 192,130 5.63 
Residential real estate2,976,608 57,668 3.87 2,883,904 51,097 3.54 
Other consumer247,210 8,461 6.88 259,573 7,597 5.90 
Allowance for loan credit losses, net of deferred loan costs and fees(58,705)— — (51,948)— — 
Loans receivable, net10,050,631 273,170 5.46 9,968,082 250,824 5.07 
Total interest-earning assets12,277,080 321,028 5.25 12,130,712 289,130 4.80 
Non-interest-earning assets1,221,889 1,226,061 
Total assets$13,498,969 $13,356,773 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,894,013 41,838 2.16 %$3,790,413 18,234 0.97 %
Money market1,137,716 19,653 3.47 699,940 5,437 1.57 
Savings1,259,960 7,066 1.13 1,308,381 723 0.11 
Time deposits2,375,760 51,369 4.35 2,144,514 34,870 3.28 
Total8,667,449 119,926 2.78 7,943,248 59,264 1.50 
FHLB Advances678,309 16,517 4.90 1,234,919 29,824 4.87 
Securities sold under agreements to repurchase70,403 889 2.54 71,825 282 0.79 
Other borrowings (4)
521,084 15,209 5.87 295,248 8,849 6.04 
Total borrowings1,269,796 32,615 5.17 1,601,992 38,955 4.90 
Total interest-bearing liabilities9,937,245 152,541 3.09 9,545,240 98,219 2.08 
Non-interest-bearing deposits1,630,374 1,950,437 
Non-interest-bearing liabilities (4)
257,603 242,864 
Total liabilities11,825,222 11,738,541 
Stockholders’ equity1,673,747 1,618,232 
Total liabilities and equity$13,498,969 $13,356,773 
Net interest income$168,487 $190,911 
Net interest rate spread (5)
2.16 %2.72 %
Net interest margin (6)
2.76 %3.17 %
Total cost of deposits (including non-interest-bearing deposits)2.34 %1.21 %
(1)    Average yields and costs are annualized.
(2)    Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3)    Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4)    For the three and six months ended June 30, 2023, includes reclassifications to conform with current period presentation.
(5)    Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6)    Net interest margin represents net interest income divided by average interest-earning assets.
19

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Selected Financial Condition Data:
Total assets$13,321,755 $13,418,978 $13,538,253 $13,498,183 $13,538,903 
Debt securities available-for-sale, at estimated fair value
721,484 744,944 753,892 453,208 452,016 
Debt securities held-to-maturity, net of allowance for securities credit losses1,105,843 1,128,666 1,159,735 1,189,339 1,222,507 
Equity investments104,132 103,201 100,163 97,908 96,452 
Restricted equity investments, at cost92,679 85,689 93,766 82,484 105,305 
Loans receivable, net of allowance for loan credit losses9,961,117 10,068,209 10,136,721 10,068,156 10,030,106 
Deposits9,994,017 10,236,851 10,434,949 10,533,929 10,158,337 
Federal Home Loan Bank advances789,337 658,436 848,636 606,056 1,091,666 
Securities sold under agreements to repurchase and other borrowings504,490 492,520 269,604 279,164 270,377 
Total stockholders’ equity1,676,669 1,665,837 1,661,945 1,637,604 1,626,283 

For the Three Months Ended,
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Selected Operating Data:
Interest income$159,426 $161,602 $160,434 $158,410 $150,096 
Interest expense77,163 75,378 72,610 67,414 57,987 
Net interest income82,263 86,224 87,824 90,996 92,109 
Provision for credit losses3,114 591 3,153 10,283 1,229 
Net interest income after provision for credit losses79,149 85,633 84,671 80,713 90,880 
Other income (excluding activity related to debt and equity investments and sale of trust business)10,098 9,201 9,685 9,310 9,487 
Net gain (loss) on equity investments887 1,923 2,176 1,452 (559)
Net gain on sale of trust business— 1,162 — — — 
Operating expenses (excluding FDIC special assessment)58,620 58,254 58,526 64,484 62,930 
FDIC special assessment— 418 1,663 — — 
Income before provision for income taxes31,514 39,247 36,343 26,991 36,878 
Provision for income taxes7,082 10,637 8,591 6,459 8,996 
Net income24,432 28,610 27,752 20,532 27,882 
Net income (loss) attributable to non-controlling interest59 (57)70 (135)85 
Net income attributable to OceanFirst Financial Corp.$24,373 $28,667 $27,682 $20,667 $27,797 
Net income available to common stockholders$23,369 $27,663 $26,678 $19,663 $26,793 
Diluted earnings per share$0.40 $0.47 $0.46 $0.33 $0.45 
Net accretion/amortization of purchase accounting adjustments included in net interest income$1,086 $921 $1,604 $1,745 $1,152 
20

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
0.70 %0.82 %0.78 %0.57 %0.80 %
Return on average tangible assets (3) (4)
0.73 0.85 0.81 0.59 0.83 
Return on average stockholders’ equity (3)
5.61 6.65 6.41 4.75 6.61 
Return on average tangible stockholders’ equity (3) (4)
8.10 9.61 9.33 6.93 9.70 
Return on average tangible common equity (3) (4)
8.51 10.09 9.81 7.29 10.21 
Stockholders’ equity to total assets12.59 12.41 12.28 12.13 12.01 
Tangible stockholders’ equity to tangible assets (4)
9.08 8.92 8.80 8.64 8.51 
Tangible common equity to tangible assets (4)
8.64 8.49 8.38 8.21 8.09 
Net interest rate spread2.11 2.23 2.25 2.37 2.52 
Net interest margin2.71 2.81 2.82 2.91 3.02 
Operating expenses to average assets 1.75 1.74 1.76 1.88 1.87 
Efficiency ratio (5)
62.86 59.56 60.38 63.37 62.28 
Loan-to-deposit ratio100.30 98.90 97.70 96.10 99.30 


For the Six Months Ended June 30,
20242023
Performance Ratios (Annualized):
Return on average assets (3)
0.76 %0.81 %
Return on average tangible assets (3) (4)
0.79 0.84 
Return on average stockholders’ equity (3)
6.13 6.69 
Return on average tangible stockholders’ equity (3) (4)
8.86 9.84 
Return on average tangible common equity (3) (4)
9.30 10.37 
Net interest rate spread2.16 2.70 
Net interest margin2.76 3.17 
Operating expenses to average assets1.75 1.88 
Efficiency ratio (5)
61.17 61.53 


21

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$150,519 $236,891 $335,769 $336,913 $339,890 
Nest Egg AUA/M403,647 407,478 401,420 385,317 397,927 
Total AUA/M554,166 644,369 737,189 722,230 737,817 
Per Share Data:
Cash dividends per common share$0.20 $0.20 $0.20 $0.20 $0.20 
Book value per common share at end of period28.67 28.32 27.96 27.56 27.37 
Tangible book value per common share at end of period (4)
18.93 18.63 18.35 17.93 17.72 
Common shares outstanding at end of period58,481,41858,812,49859,447,68459,421,498 59,420,859
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:39 39 39 38 38 
Quarterly Average Balances
Total securities$2,058,711 $2,098,421 $1,863,136 $1,873,450 $1,931,032 
Loans receivable, net10,012,491 10,088,771 10,089,161 10,040,522 10,010,785 
Total interest-earning assets12,203,776 12,350,384 12,349,140 12,384,797 12,250,055 
Total goodwill and core deposit intangible514,535 515,356 516,289 517,282 518,265 
Total assets13,441,218 13,556,720 13,593,107 13,637,213 13,467,721 
Time deposits2,337,458 2,414,063 2,596,706 2,867,921 2,458,872 
Total deposits (including non-interest-bearing deposits)10,173,315 10,422,332 10,633,516 10,626,159 9,993,010 
Total borrowings1,325,372 1,214,219 1,016,722 1,095,173 1,603,126 
Total interest-bearing liabilities9,872,522 10,001,968 9,910,739 9,880,134 9,722,910 
Non-interest bearing deposits1,626,165 1,634,583 1,739,499 1,841,198 1,873,226 
Stockholders' equity1,674,453 1,673,040 1,650,699 1,642,899 1,626,693 
Tangible stockholders’ equity (4)
1,159,918 1,157,684 1,134,410 1,125,617 1,108,428 
Quarterly Yields and Costs
Total securities4.22 %4.27 %3.81 %3.82 %3.47 %
Loans receivable, net5.46 5.46 5.40 5.30 5.17 
Total interest-earning assets5.25 5.26 5.16 5.08 4.91 
Time deposits4.46 4.24 4.13 4.06 3.57 
Total cost of deposits (including non-interest-bearing deposits)2.37 2.31 2.22 1.99 1.52 
Total borrowed funds5.19 5.14 5.13 5.12 5.02 
Total interest-bearing liabilities3.14 3.03 2.91 2.71 2.39 
Net interest spread2.11 2.23 2.25 2.37 2.52 
Net interest margin2.71 2.81 2.82 2.91 3.02 
(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Ratios for each period are based on net income available to common stockholders.
(4)    Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.



22


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

NON-GAAP RECONCILIATION
For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Core Earnings:
Net income available to common stockholders (GAAP)
$23,369 $27,663 $26,678 $19,663 $26,793 
(Less) add non-recurring and non-core items:
Net (gain) loss on equity investments(887)(1,923)(2,176)(1,452)559 
Net gain on sale of trust business— (1,162)— — — 
FDIC special assessment— 418 1,663 — — 
Income tax expense (benefit) on items188 642 129 351 (162)
Core earnings (Non-GAAP)
$22,670 $25,638 $26,294 $18,562 $27,190 
Income tax expense$7,082 $10,637 $8,591 $6,459 $8,996 
Provision for credit losses3,114 591 3,153 10,283 1,229 
Less: income tax expense (benefit) on non-core items188 642 129 351 (162)
Core earnings PTPP (Non-GAAP)
$32,678 $36,224 $37,909 $34,953 $37,577 
Core earnings diluted earnings per share$0.39 $0.44 $0.45 $0.32 $0.46 
Core earnings PTPP diluted earnings per share$0.56 $0.62 $0.65 $0.59 $0.64 
Core Ratios (Annualized):
Return on average assets0.68 %0.76 %0.77 %0.54 %0.81 %
Return on average tangible stockholders’ equity7.86 8.91 9.20 6.54 9.84 
Return on average tangible common equity8.26 9.36 9.67 6.88 10.36 
Efficiency ratio63.47 61.05 60.02 64.29 61.94 
23

(continued)
For the Six Months Ended June 30,
20242023
Core Earnings:
Net income available to common stockholders (GAAP)
$51,032 $53,672 
Add (less) non-recurring and non-core items:
Net (gain) loss on equity investments(1)
(2,810)2,752 
Net loss on sale of investments(1)
— 5,305 
Net gain on sale of trust business(1,162)— 
FDIC special assessment418 — 
Merger related expenses— 22 
Branch consolidation expense, net— 70 
Income tax expense (benefit) on items830 (1,959)
Core earnings (Non-GAAP)
$48,308 $59,862 
Income tax expense$17,719 $17,650 
Provision for credit losses3,705 4,242 
Less: income tax expense (benefit) on non-core items830 (1,959)
Core earnings PTPP (Non-GAAP)
$68,902 $83,713 
Core diluted earnings per share$0.83 $1.01 
Core earnings PTPP diluted earnings per share$1.18 $1.42 
Core Ratios (Annualized):
Return on average assets0.72 %0.90 %
Return on average tangible stockholders’ equity8.38 10.98 
Return on average tangible common equity8.81 11.56 
Efficiency ratio62.24 59.13 
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.


24

(continued)

June 30,March 31,December 31,September 30,June 30,
20242024202320232023
Tangible Equity:
Total stockholders' equity$1,676,669 $1,665,837 $1,661,945 $1,637,604 $1,626,283 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,859 8,669 9,513 10,489 11,476 
Tangible stockholders' equity1,162,664 1,151,022 1,146,286 1,120,969 1,108,661 
Less:
Preferred stock55,527 55,527 55,527 55,527 55,527 
Tangible common equity$1,107,137 $1,095,495 $1,090,759 $1,065,442 $1,053,134 
Tangible Assets:
Total assets$13,321,755 $13,418,978 $13,538,253 $13,498,183 $13,538,903 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible7,859 8,669 9,513 10,489 11,476 
Tangible assets$12,807,750 $12,904,163 $13,022,594 $12,981,548 $13,021,281 
Tangible stockholders' equity to tangible assets9.08 %8.92 %8.80 %8.64 %8.51 %
Tangible common equity to tangible assets8.64 %8.49 %8.38 %8.21 %8.09 %


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