OceanFirst Financial Corp. Announces Second Quarter Financial Results

Rhea-AI Summary

OceanFirst Financial Corp. (NASDAQ:OCFC) reported Q2 2025 net income of $16.2 million, or $0.28 per diluted share, down from $23.4 million ($0.40/share) year-over-year. Core earnings were $17.7 million ($0.31/share).

Key highlights include 2% annualized loan growth of $59.8 million, with commercial and industrial loans growing by $131.7 million. The commercial loan pipeline reached a record high of $790.8 million, up 111% from the previous quarter. Net interest margin improved to 2.91% from 2.71% year-over-year.

The company launched Premier Banking in April, securing 200 new relationships and $115 million in new deposits. The Board declared its 114th consecutive quarterly dividend of $0.20 per share. During Q2, OCFC repurchased 1,003,550 shares and redeemed all preferred stock for $57.4 million.

Positive

• Net interest margin improved to 2.91% from 2.71% year-over-year
• Record commercial loan pipeline of $790.8 million, up 111% quarter-over-quarter
• Premier Banking launch secured 200 new relationships and $115 million in deposits
• 2% annualized loan growth with $131.7 million increase in commercial and industrial loans
• Maintained 114th consecutive quarterly dividend at $0.20 per share

Negative

• Net income decreased to $16.2 million from $23.4 million year-over-year
• Core earnings declined to $17.7 million from $22.7 million year-over-year
• Efficiency ratio deteriorated to 71.93% from 62.86% year-over-year
• Net loan charge-offs increased to $2.2 million from $1.5 million year-over-year
• $1.8 million net loss on preferred stock redemption

Insights

Banking Financial Analyst

OceanFirst's Q2 earnings decreased to $0.28/share from $0.40 YoY with improved NIM, but rising expenses from commercial banking investments.

OceanFirst Financial Corp. reported net income of $16.2 million ($0.28 per diluted share) for Q2 2025, down 30.8% from $23.4 million ($0.40 per share) in Q2 2024 and 21% from the linked quarter's $20.5 million ($0.35 per share). Core earnings, which exclude non-recurring items, were $17.7 million ($0.31 per share), also showing significant YoY decline.

The bank's net interest margin improved to 2.91% from 2.71% YoY and 2.90% in the linked quarter, reflecting successful management of funding costs in a declining rate environment. Total cost of deposits decreased to 2.06% from 2.37% YoY. This margin expansion helped drive net interest income up to $87.6 million, a 6.4% increase from $82.3 million in the prior year period.

However, operational expenses increased substantially to $71.5 million, up 22% from $58.6 million in Q2 2024, primarily due to higher compensation costs related to new commercial banking hires and recent acquisitions. This expense growth outpaced revenue gains, causing the efficiency ratio to deteriorate to 71.93% from 62.86% YoY.

The bank's loan portfolio grew modestly at a 2% annualized rate, with $59.8 million in total loan growth and $131.7 million in commercial and industrial loan expansion. More significantly, the commercial loan pipeline reached a record $790.8 million, up 111% from the previous quarter, suggesting stronger growth potential in coming quarters.

Asset quality metrics remained stable with $2.2 million in net charge-offs, including $1.6 million related to two commercial relationships from a recent acquisition. The bank maintained its quarterly dividend at $0.20 per share, marking its 114th consecutive quarterly cash dividend.

The recently launched Premier Banking initiative is showing early promise, generating approximately 200 new relationships and $115 million in new deposits in just its first few weeks. This initiative, along with the expanded commercial banking team and record loan pipeline, positions the bank for potentially improved performance in coming quarters, though current results show the pressure of increased operating expenses on profitability metrics.

RED BANK, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $16.2 million, or $0.28 per diluted share, for the three months ended June 30, 2025, a decrease from $23.4 million, or $0.40 per diluted share, for the corresponding prior year period, and a decrease from $20.5 million, or $0.35 per diluted share, for the linked quarter. For the six months ended June 30, 2025, the Company reported net income available to common stockholders of $36.7 million, or $0.63 per diluted share, a decrease from $51.0 million, or $0.87 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, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Return on average assets	0.49	%		0.62	%		0.70	%		0.56	%		0.76	%
Return on average stockholders’ equity	3.86			4.85			5.61			4.36			6.13
Return on average tangible stockholders’ equity (a)	5.66			7.05			8.10			6.36			8.86
Return on average tangible common equity (a)	5.66			7.40			8.51			6.36			9.30
Efficiency ratio	71.93			65.67			62.86			68.82			61.17
Net interest margin	2.91			2.90			2.71			2.91			2.76

_{^(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.}

Core earnings¹ for the three and six months ended June 30, 2025 were $17.7 million and $38.0 million, respectively, or $0.31 and $0.66 per diluted share, a decrease from $22.7 million and $48.3 million, respectively, or $0.39 and $0.83 per diluted share, for the corresponding prior year periods, and a decrease from $20.3 million, or $0.35 per diluted share, for the linked quarter.

Core earnings PTPP¹ for the three and six months ended June 30, 2025 was $26.4 million and $58.8 million, or $0.46 and $1.02 per diluted share, as compared to $32.7 million and $68.9 million, respectively, or $0.56 and $1.18 per diluted share, for the corresponding prior year periods, and $32.4 million, or $0.56 per diluted share, for the linked quarter. Selected performance metrics are as follows:

	For the Three Months Ended,												For the Six Months Ended,
Core Ratios1 (Annualized):	June 30, 2025				March 31, 2025				June 30, 2024				June 30, 2025				June 30, 2024
Return on average assets		0.53	%			0.62	%			0.68	%			0.58	%			0.72	%
Return on average tangible stockholders’ equity		6.17				7.00				7.86				6.59				8.38
Return on average tangible common equity		6.17				7.34				8.26				6.59				8.81
Efficiency ratio		72.28				65.81				63.47				69.06				62.24
Diluted earnings per share	$	0.31			$	0.35			$	0.39			$	0.66			$	0.83
PTPP diluted earnings per share		0.46				0.56				0.56				1.02				1.18

 

Key developments for the recent quarter are described below:

• Loan Growth: Total loans increased $59.8 million, representing a 2% annualized growth rate, which included $131.7 million of commercial and industrial loan growth. The commercial loan pipeline reached a record high of $790.8 million, which increased 111% from $375.6 million in the linked quarter.

• Premier Banking: Launched in mid-April and is demonstrating strong progress with approximately 200 new relationships and $115.0 million in new deposits in the first few weeks of operation.  

• Capital: The Company repurchased 1,003,550 shares during the quarter and redeemed all of its preferred stock. Book value per share decreased $0.63 to $28.64 while tangible book value per share increased $0.18 to $19.34 as compared to the linked 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 reflected loan and deposit growth, stable asset quality metrics, capital returns through share repurchases, and modest net interest income and margin expansion.” Mr. Maher added, “Looking ahead, we expect to continue to build on this momentum from our commercial banking teams with a record commercial loan pipeline and new deposit relationship opportunities.”

The Company’s Board of Directors declared its 114th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 15, 2025 to common stockholders of record on August 4, 2025.

_{¹ Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment and the income tax effect of these items, as well as loss on redemption of preferred stock (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}  

Results of Operations

During the current quarter, the Company redeemed all of its preferred stock for an aggregate payment of $57.4 million, at a redemption price of $25.00 per share, which resulted in a net loss on redemption of $1.8 million. Additionally, the current quarter included professional fees of $1.6 million related to recruitment fees for the Company’s recent commercial banking hires and non-recurring benefits of $1.1 million in other income.

Net Interest Income and Margin

Three months ended June 30, 2025 vs. June 30, 2024

Net interest income increased to $87.6 million, from $82.3 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.91%, from 2.71%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in the yield on average interest-earning assets.

Average interest-earning assets decreased by $138.2 million primarily due to a decrease in securities and, to a lesser extent, commercial loans, partly offset by an increase in residential loans. The average yield for interest-earning assets decreased to 5.14%, from 5.25%.

The cost of average interest-bearing liabilities decreased to 2.77%, from 3.14%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 31 basis points to 2.06%, from 2.37%. Average interest-bearing liabilities decreased by $132.8 million, primarily due to decreases in other borrowings, partly offset by an increase in FHLB advances.

Six months ended June 30, 2025 vs. June 30, 2024

Net interest income increased to $174.3 million, from $168.5 million, reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.91%, from 2.76%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.

Average interest-earning assets decreased by $185.8 million, primarily driven by a decrease in securities and, to a lesser extent, loans. The average yield decreased to 5.14%, from 5.25%.

The cost of average interest-bearing liabilities decreased to 2.77%, from 3.09%. The total cost of deposits decreased to 2.06%, from 2.34%. Average interest-bearing liabilities decreased by $179.6 million, primarily due to decreases in total deposits and other borrowings, partly offset by an increase in FHLB advances.

Three months ended June 30, 2025 vs. March 31, 2025

Net interest income increased by $1.0 million, to $87.6 million from $86.7 million and net interest margin increased to 2.91%, from 2.90%, primarily reflecting the impact of purchase accounting and prepayment fees of 0.04% and 0.03%, respectively.

Average interest-earning assets decreased by $46.5 million, primarily due to a decrease in securities. The yield on average interest-earning assets increased to 5.14%, from 5.13%.

Average interest-bearing liabilities decreased by $36.1 million, primarily due to decreases in interest-bearing checking deposits and FHLB advances, partly offset by an increase in time deposits. The total cost of average interest-bearing liabilities decreased to 2.77%, from 2.78%, primarily due to lower cost of time deposits, partly offset by an increase in the cost of other borrowings. The total cost of deposits remained stable at 2.06% for both periods.

Provision for Credit Losses

Provision for credit losses for the three and six months ended June 30, 2025 was $3.0 million and $8.4 million, respectively, as compared to $3.1 million and $3.7 million for the corresponding prior year periods, and $5.3 million for the linked quarter. The current quarter provision was primarily driven by net loan charge-offs of $2.2 million, a net reserve build due to mix-shift into commercial and industrial loans, and an increase in unfunded credit commitments.

Net loan charge-offs were $2.2 million and $2.9 million for the three and six months ended June 30, 2025, respectively, as compared to net loan charge-offs of $1.5 million and $1.8 million for the corresponding prior year periods and $636,000 for the linked quarter. The current and linked quarter includes charge-offs of $445,000 and $720,000 related to sales of non-performing residential and consumer loans of $2.2 million and $5.1 million, respectively. The current quarter includes $1.6 million of charge-offs related to two commercial relationships related to the Company’s recent acquisition. The prior year includes the impact of a $1.6 million charge-off on a single commercial real estate relationship.

Non-interest Income

Three months ended June 30, 2025 vs. June 30, 2024

Other income increased to $11.7 million, as compared to $11.0 million. Other income was favorably impacted by non-core operations related to net gains on equity investments of $488,000 in the current quarter, and $887,000 for the prior year quarter.

Excluding non-core operations, other income increased by $1.1 million. The primary drivers were increases related to net gain on sale of loans of $757,000 and non-recurring other income of $1.1 million, partly offset by a loss on other real estate operations of $260,000.

Six months ended June 30, 2025 vs. June 30, 2024

Other income decreased to $23.0 million, as compared to $23.3 million. Other income was favorably impacted by non-core operations of $693,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $4.0 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 $3.0 million. The primary drivers were increases related to net gain on sale of loans of $1.3 million, commercial loan swap income of $448,000 and non-recurring other income of $1.9 million in the current period, partly offset by a loss on other real estate operations of $276,000.

Three months ended June 30, 2025 vs. March 31, 2025

Other income in the linked quarter was $11.3 million and was favorably impacted by non-core operations of $205,000 related to net gains on equity investments. Excluding non-core operations, other income increased by $197,000. The primary driver was non-recurring other income of $1.1 million as noted above, partly offset by non-recurring other income of $842,000 in the prior quarter and a decrease in commercial loan swap income of $413,000.

Non-interest Expense

Three months ended June 30, 2025 vs. June 30, 2024

Operating expenses increased by $12.9 million to $71.5 million, as compared to $58.6 million. The primary driver was an increase in compensation and benefits of $7.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and the additional commercial banking teams hired during the current quarter. Additional drivers were increases in professional fees of $2.2 million, primarily due to recruitment fees, other operating expenses of $1.9 million, mostly due to additional loan servicing expense, data processing expense of $790,000, partly due to acquisitions at the end of the prior year, and increased marketing spend of $366,000.

Six months ended June 30, 2025 vs. June 30, 2024

Operating expenses increased to $135.8 million, as compared to $117.3 million. Operating expenses were adversely impacted by non-core operations related to FDIC special assessment in the prior year of $418,000.

Excluding non-core operations, operating expenses increased by $18.9 million. The primary driver was an increase in compensation and benefits of $11.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and the additional commercial banking team hires. Additional drivers were increases in other operating expenses of $2.9 million, mostly due to additional loan servicing expense, professional fees of $1.9 million, primarily due to the recruitment fees, data processing of $1.5 million, partly due to acquisitions at the end of the prior year, occupancy of $577,000, and marketing of $484,000.

Three months ended June 30, 2025 vs. March 31, 2025

Operating expenses increased by $7.2 million to $71.5 million, as compared to $64.3 million. The primary drivers were increases in compensation and benefits of $3.5 million due to additional banking team hires, partly offset by $1.3 million of normal incentive-related adjustments in the prior quarter, and professional fees of $1.9 million primarily due to recruitment of commercial bankers noted above. Additionally, other operating expense increased by $1.4 million, partly related to higher title costs.

Income Tax Expense

The provision for income taxes was $5.8 million and $12.6 million for the three and six months ended June 30, 2025, as compared to $7.1 million and $17.7 million for the same prior year periods and $6.8 million for the linked quarter. The effective tax rate was 23.2% and 23.7% for the three and six months ended June 30, 2025, as compared to 22.5% and 25.0% for the same prior year periods and 24.1% for the linked quarter. The effective tax rate for the six months ended June 30, 2024 was negatively impacted by 1.6% due to a non-recurring write-off of a deferred tax asset of $1.2 million.

Financial Condition

June 30, 2025 vs. December 31, 2024

Total assets decreased by $93.4 million to $13.33 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $91.9 million to $735.6 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $76.9 million to $969.0 million, from $1.05 billion, primarily due to principal repayments. Total loans increased by $67.0 million to $10.19 billion, from $10.12 billion, while the loan pipeline increased by $648.1 million to $954.8 million, from $306.7 million, primarily due to an increase in commercial loans of $593.3 million. Other assets decreased by $33.4 million to $152.3 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

Total liabilities decreased by $34.3 million to $11.68 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $166.1 million to $10.23 billion, from $10.07 billion, primarily due to an increase in time deposits. Time deposits increased to $2.30 billion, from $2.08 billion, representing 22.5% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $448.1 million, partly offset by a decrease in retail time deposits of $229.4 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $133.9 million to $938.7 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

Other liabilities decreased by $63.6 million to $234.8 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

Capital levels remain strong and in excess of “well-capitalized” regulatory levels at June 30, 2025, including the Company’s estimated common equity tier one capital ratio which declined to 11.0%, driven primarily by stock repurchases and increased lending commitments.

Total stockholders’ equity decreased to $1.64 billion, as compared to $1.70 billion, primarily due to the redemption of preferred stock for $55.5 million and capital returns comprised of dividends and share repurchases, partially offset by net income. Additionally, accumulated other comprehensive loss decreased by $4.4 million primarily due to increases in the fair market value of available-for-sale debt securities, net of tax.

During the six months ended June 30, 2025, the Company repurchased 1,401,945 shares totaling $24.3 million representing a weighted average cost of $17.17. As of June 30, 2025, the Company had 226,284 shares available for repurchase under the authorized repurchase program. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares.

The Company’s tangible common equity² decreased by $1.7 million to $1.11 billion. The Company’s stockholders’ equity to assets ratio was 12.33% at June 30, 2025, and tangible common equity to tangible assets ratio increased by 5 basis points during the year to 8.67%, primarily due to the drivers described above.

Book value per common share decreased to $28.64, as compared to $29.08. Tangible book value per common share² increased to $19.34, as compared to $18.98.

 

_{² Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}  

Asset Quality

June 30, 2025 vs. December 31, 2024

The Company’s non-performing loans decreased to $33.5 million, from $35.5 million, and represented 0.33% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 236.54%, as compared to 207.19%. The level of 30 to 89 days delinquent loans decreased to $14.7 million, from $36.6 million, primarily related to residential loans. Criticized and classified loans and other real estate owned decreased to $153.3 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans decreased to $26.7 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 296.75%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $12.2 million, from $33.6 million.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, July 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 170810. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, from one hour after the end of the call until August 1, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, and retaliatory responses, 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 investor sentiment and consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

OceanFirst Financial Corp. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands)
	June 30, 2025			March 31, 2025			December 31, 2024			June 30, 2024
	(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and due from banks	$	170,599		$	163,721		$	123,615		$	181,198
Debt securities available-for-sale, at estimated fair value		735,561			746,168			827,500			721,484
Debt securities held-to-maturity, net of allowance for securities credit losses of $809 at June 30, 2025, $898 at March 31, 2025, $967 at December 31, 2024 and $958 at June 30, 2024 (estimated fair value of $896,090 at June 30, 2025, $926,075 at March 31, 2025, $952,917 at December 31, 2024 and $1,003,850 at June 30, 2024)		968,969			1,005,476			1,045,875			1,105,843
Equity investments		87,808			87,365			84,104			104,132
Restricted equity investments, at cost		106,538			102,172			108,634			92,679
Loans receivable, net of allowance for loan credit losses of $79,266 at June 30, 2025, $78,798 at March 31, 2025, $73,607 at December 31, 2024 and $68,839 at June 30, 2024		10,119,781			10,058,072			10,055,429			9,961,117
Loans held-for-sale		15,744			9,698			21,211			2,062
Interest and dividends receivable		44,032			44,843			45,914			50,976
Other real estate owned		7,680			1,917			1,811			—
Premises and equipment, net		113,474			114,588			115,256			117,392
Bank owned life insurance		271,184			269,398			270,208			267,867
Assets held-for-sale		—			—			—			28
Goodwill		523,308			523,308			523,308			506,146
Intangibles		10,834			11,740			12,680			7,859
Other assets		152,335			170,812			185,702			202,972
Total assets	$	13,327,847		$	13,309,278		$	13,421,247		$	13,321,755
Liabilities and Stockholders’ Equity
Deposits	$	10,232,442		$	10,177,023		$	10,066,342		$	9,994,017
Federal Home Loan Bank advances		938,687			891,021			1,072,611			789,337
Securities sold under agreements to repurchase with customers		61,490			65,132			60,567			80,000
Other borrowings		198,019			197,808			197,546			424,490
Advances by borrowers for taxes and insurance		18,759			28,789			23,031			25,168
Other liabilities		234,770			240,388			298,393			332,074
Total liabilities		11,684,167			11,600,161			11,718,490			11,645,086
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity		1,642,846			1,708,322			1,701,650			1,675,885
Non-controlling interest		834			795			1,107			784
Total stockholders’ equity		1,643,680			1,709,117			1,702,757			1,676,669
Total liabilities and stockholders’ equity	$	13,327,847		$	13,309,278		$	13,421,247		$	13,321,755

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, 2025				March 31, 2025				June 30, 2024			June 30, 2025				June 30, 2024
	|---------------------- (Unaudited) ----------------------|											|---------- (Unaudited) -----------|
Interest income:
Loans	$	135,478			$	133,019			$	136,049		$	268,497			$	273,170
Debt securities		15,950				17,270				19,039			33,220				38,900
Equity investments and other		3,397				3,414				4,338			6,811				8,958
Total interest income		154,825				153,703				159,426			308,528				321,028
Interest expense:
Deposits		52,273				51,046				60,071			103,319				119,926
Borrowed funds		14,916				16,005				17,092			30,921				32,615
Total interest expense		67,189				67,051				77,163			134,240				152,541
Net interest income		87,636				86,652				82,263			174,288				168,487
Provision for credit losses		3,039				5,340				3,114			8,379				3,705
Net interest income after provision for credit losses		84,597				81,312				79,149			165,909				164,782
Other income (loss):
Bankcard services revenue		1,619				1,463				1,571			3,082				2,987
Trust and asset management revenue		374				406				419			780				945
Fees and service charges		4,969				4,712				5,015			9,681				9,488
Net gain on sales of loans		1,177				858				420			2,035				777
Net gain on equity investments		488				205				887			693				2,810
Net loss from other real estate operations		(260	)			(16	)			—			(276	)			—
Income from bank owned life insurance		1,786				1,852				1,726			3,638				3,588
Commercial loan swap income		207				620				241			827				379
Other		1,373				1,153				706			2,526				2,297
Total other income		11,733				11,253				10,985			22,986				23,271
Operating expenses:
Compensation and employee benefits		40,242				36,740				33,136			76,982				65,895
Occupancy		5,454				5,497				5,175			10,951				10,374
Equipment		869				921				1,068			1,790				2,198
Marketing		1,541				1,108				1,175			2,649				2,165
Federal deposit insurance and regulatory assessments		2,898				2,983				2,685			5,881				5,820
Data processing		6,808				6,647				6,018			13,455				11,974
Check card processing		1,156				1,170				1,075			2,326				2,125
Professional fees		4,336				2,425				2,161			6,761				4,893
Amortization of intangibles		906				940				810			1,846				1,654
Other operating expenses		7,264				5,863				5,317			13,127				10,194
Total operating expenses		71,474				64,294				58,620			135,768				117,292
Income before provision for income taxes		24,856				28,271				31,514			53,127				70,761
Provision for income taxes		5,771				6,808				7,082			12,579				17,719
Net income		19,085				21,463				24,432			40,548				53,042
Net income (loss) attributable to non-controlling interest		39				(46	)			59			(7	)			2
Net income attributable to OceanFirst Financial Corp.		19,046				21,509				24,373			40,555				53,040
Dividends on preferred shares		1,004				1,004				1,004			2,008				2,008
Loss on redemption of preferred stock		1,842				—				—			1,842				—
Net income available to common stockholders	$	16,200			$	20,505			$	23,369		$	36,705			$	51,032
Basic earnings per share	$	0.28			$	0.35			$	0.40		$	0.63			$	0.87
Diluted earnings per share	$	0.28			$	0.35			$	0.40		$	0.63			$	0.87
Average basic shares outstanding		57,738				58,102				58,356			57,889				58,489
Average diluted shares outstanding		57,740				58,111				58,357			57,891				58,490

OceanFirst Financial Corp. SELECTED LOAN AND DEPOSIT DATA (dollars in thousands)
LOANS RECEIVABLE			At
			June 30, 2025					March 31, 2025				December 31, 2024				September 30, 2024			June 30, 2024
Commercial:
Commercial real estate - investor				$	5,068,125			$	5,200,137			$	5,287,683			$	5,273,159			$	5,324,994
Commercial and industrial:
Commercial and industrial - real estate					914,406				896,647				902,219				841,930				857,710
Commercial and industrial - non-real estate					862,504				748,575				647,945				660,879				616,400
Total commercial and industrial					1,776,910				1,645,222				1,550,164				1,502,809				1,474,110
Total commercial					6,845,035				6,845,359				6,837,847				6,775,968				6,799,104
Consumer:
Residential real estate					3,119,232				3,053,318				3,049,763				3,003,213				2,977,698
Home equity loans and lines and other consumer ("other consumer")					220,820				226,633				230,462				242,975				242,526
Total consumer					3,340,052				3,279,951				3,280,225				3,246,188				3,220,224
Total loans					10,185,087				10,125,310				10,118,072				10,022,156				10,019,328
Deferred origination costs (fees), net					13,960				11,560				10,964				10,508				10,628
Allowance for loan credit losses					(79,266	)			(78,798	)			(73,607	)			(69,066	)			(68,839	)
Loans receivable, net				$	10,119,781			$	10,058,072			$	10,055,429			$	9,963,598			$	9,961,117
Mortgage loans serviced for others				$	288,211			$	222,963			$	191,279			$	142,394			$	104,136
	At June 30, 2025 Average Yield
Loan pipeline (1):
Commercial	6.98	%		$	790,768			$	375,622			$	197,491			$	199,818			$	166,206
Residential real estate	6.51				146,921				116,121				97,385				137,978				80,330
Other consumer	8.51				17,110				12,681				11,783				13,788				12,586
Total	6.94	%		$	954,799			$	504,424			$	306,659			$	351,584			$	259,122

		For the Three Months Ended
		June 30, 2025						March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
		Average Yield
Loan originations:
	Commercial (2)	7.14	%		$	425,877		$	233,968		$	268,613		$	245,886		$	56,053
	Residential real estate	6.37				274,314			167,162			235,370			169,273			121,388
	Other consumer	8.52				15,813			15,825			11,204			15,760			16,970
	Total	6.88	%		$	716,004		$	416,955		$	515,187		$	430,919		$	194,411
Loans sold (3)					$	142,431		$	104,991		$	127,508		$	65,296		$	45,045

_{⁽¹⁾ Loan pipeline includes loans approved but not funded.
⁽²⁾ Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the threemonths ended March 31, 2025 and December 31, 2024, respectively.
⁽³⁾ Excludes sale of non-performing residential and consumer loans of $2.2 million and $5.1 million for the three months ended June 30, 2025 and March 31, 2025, respectively.}

DEPOSITS		At
		June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Type of Account
	Non-interest-bearing	$	1,686,627		$	1,660,738		$	1,617,182		$	1,638,447		$	1,632,521
	Interest-bearing checking		3,845,602			4,006,653			4,000,553			3,896,348			3,667,837
	Money market		1,377,999			1,337,570			1,301,197			1,288,555			1,210,312
	Savings		1,022,918			1,052,504			1,066,438			1,071,946			1,115,688
	Time deposits (1)		2,299,296			2,119,558			2,080,972			2,220,871			2,367,659
	Total deposits	$	10,232,442		$	10,177,023		$	10,066,342		$	10,116,167		$	9,994,017

_{⁽¹⁾ Includes brokered time deposits of $522.8 million, $370.5 million, $74.7 million, $201.0 million, and $401.6 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024,and June 30, 2024, respectively.}

OceanFirst Financial Corp. ASSET QUALITY (dollars in thousands)
ASSET QUALITY (1)		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Non-performing loans:
	Commercial real estate - investor	$	20,457			$	23,595			$	17,000			$	12,478			$	19,761
	Commercial and industrial:
	Commercial and industrial - real estate		4,499				4,690				4,787				4,368				4,081
	Commercial and industrial - non-real estate		311				22				32				122				434
	Total commercial and industrial		4,810				4,712				4,819				4,490				4,515
	Residential real estate		5,318				5,709				10,644				9,108				7,213
	Other consumer		2,926				2,954				3,064				2,063				1,933
	Total non-performing loans (1)	$	33,511			$	36,970			$	35,527			$	28,139			$	33,422
	Other real estate owned		7,680				1,917				1,811				—				—
	Total non-performing assets	$	41,191			$	38,887			$	37,338			$	28,139			$	33,422
Delinquent loans 30 to 89 days		$	14,740			$	46,246			$	36,550			$	15,458			$	9,655
Modifications to borrowers experiencing financial difficulty (2)
	Non-performing (included in total non-performing loans above)	$	8,129			$	8,307			$	3,232			$	3,043			$	3,210
	Performing		31,986				27,592				27,631				20,652				20,529
	Total modifications to borrowers experiencing financial          difficulty (2)	$	40,115			$	35,899			$	30,863			$	23,695			$	23,739
Allowance for loan credit losses		$	79,266			$	78,798			$	73,607			$	69,066			$	68,839
Allowance for loan credit losses as a percent of total loans receivable (3)			0.78	%			0.78	%			0.73	%			0.69	%			0.69	%
Allowance for loan credit losses as a percent of total non-performing    loans (3)			236.54				213.14				207.19				245.45				205.97
Non-performing loans as a percent of total loans receivable			0.33				0.37				0.35				0.28				0.33
Non-performing assets as a percent of total assets			0.31				0.29				0.28				0.21				0.25
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses		$	20,934			$	21,737			$	22,006			$	15,323			$	16,058
Non-performing PCD loans			6,800				7,724				7,931				2,887				2,841
Delinquent PCD and non-performing loans 30 to 89 days			2,590				10,489				2,997				1,279				1,188
PCD modifications to borrowers experiencing financial difficulty (2)			20				22				23				24				26
Asset quality, excluding PCD loans
Non-performing loans (1)			26,711				29,246				27,596				25,252				30,581
Non-performing assets			34,391				31,163				29,407				25,252				30,581
Delinquent loans 30 to 89 days (excludes non-performing loans)			12,150				35,757				33,553				14,179				8,467
Modifications to borrowers experiencing financial difficulty (2)			40,095				35,877				30,840				23,671				23,713
Allowance for loan credit losses as a percent of total non-performing    loans (3)			296.75	%			269.43	%			266.73	%			273.51	%			225.10	%
Non-performing loans as a percent of total loans receivable			0.26				0.29				0.27				0.25				0.31
Non-performing assets as a percent of total assets			0.26				0.23				0.22				0.19				0.23

_{⁽¹⁾ The quarters ended June 30, 2025 and March 31, 2025 included the sale of non-performing residential and consumer loans of $2.2 million and $5.1 million, respectively, and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.
⁽²⁾ Balances represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023. 
⁽³⁾ Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.0 million, $5.6 million, $6.0 million, $5.7 million and $6.1 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.} 

NET LOAN (CHARGE-OFFS) RECOVERIES		For the Three Months Ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Net loan (charge-offs) recoveries:
	Loan charge-offs	$	(2,415	)		$	(798	)		$	(55	)		$	(124	)		$	(1,600	)
	Recoveries on loans		197				162				213				212				148
	Net loan (charge-offs) recoveries	$	(2,218	)		$	(636	)		$	158			$	88			$	(1,452	)
	Net loan (charge-offs) recoveries to average total loans (annualized)		0.09	%			0.03	%			NM	*			NM	*			0.06	%
Net loan (charge-offs) recoveries detail:
	Commercial (1)	$	(1,666	)		$	25			$	92			$	129			$	(1,576	)
	Residential real estate (2)		(348	)			(720	)			(17	)			(6	)			87
	Other consumer (2)		(204	)			59				83				(35	)			37
	Net loan (charge-offs) recoveries	$	(2,218	)		$	(636	)		$	158			$	88			$	(1,452	)

_{⁽¹⁾ The three months ended June 30, 2025 and June 30, 2024 included charge-offs related to two commercial relationships of $1.6 million and a single commercial real estate relationship of $1.6 million, respectively.
⁽²⁾ The three months ended June 30, 2025 and March 31, 2025 included charge-offs of $445,000 and $720,000, respectively, related to the sale of non-performing residential and consumer loans.
^* Not meaningful as amounts are net loan recoveries.}

OceanFirst Financial Corp. ANALYSIS OF NET INTEREST INCOME
	For the Three Months Ended
	June 30, 2025										March 31, 2025										June 30, 2024
(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	$	111,631			$	1,090		3.92	%		$	95,439			$	983		4.18	%		$	132,574			$	1,770		5.37	%
Securities (2)		1,917,114				18,257		3.82				2,003,206				19,701		3.99				2,058,711				21,607		4.22
Loans receivable, net (3)
Commercial		6,786,611				100,004		5.91				6,781,005				98,260		5.88				6,845,988				102,620		6.03
Residential real estate		3,091,227				31,861		4.12				3,065,679				31,270		4.08				2,978,749				29,072		3.90
Other consumer		225,311				3,613		6.43				228,553				3,489		6.19				246,024				4,357		7.12
Allowance for loan credit losses, net of deferred loan costs and fees		(66,364	)			—		—				(61,854	)			—		—				(58,270	)			—		—
Loans receivable, net		10,036,785				135,478		5.41				10,013,383				133,019		5.37				10,012,491				136,049		5.46
Total interest-earning assets		12,065,530				154,825		5.14				12,112,028				153,703		5.13				12,203,776				159,426		5.25
Non-interest-earning assets		1,182,543										1,199,865										1,237,442
Total assets	$	13,248,073									$	13,311,893									$	13,441,218
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,990,602				20,605		2.07	%		$	4,135,952				21,433		2.10	%		$	3,862,060				21,043		2.19	%
Money market		1,342,194				9,718		2.90				1,322,003				9,353		2.87				1,183,429				10,482		3.56
Savings		1,029,490				1,680		0.65				1,058,015				1,785		0.68				1,164,203				2,604		0.90
Time deposits		2,175,564				20,270		3.74				1,916,109				18,475		3.91				2,337,458				25,942		4.46
Total		8,537,850				52,273		2.46				8,432,079				51,046		2.46				8,547,150				60,071		2.83
FHLB Advances		880,746				9,933		4.52				996,293				11,359		4.62				711,801				8,746		4.94
Securities sold under agreements to repurchase		60,477				419		2.78				64,314				428		2.70				72,305				478		2.66
Other borrowings		260,655				4,564		7.02				283,150				4,218		6.04				541,266				7,868		5.85
Total borrowings		1,201,878				14,916		4.98				1,343,757				16,005		4.83				1,325,372				17,092		5.19
Total interest-bearing liabilities		9,739,728				67,189		2.77				9,775,836				67,051		2.78				9,872,522				77,163		3.14
Non-interest-bearing deposits		1,639,045										1,597,972										1,626,165
Non-interest-bearing liabilities		186,653										222,951										268,078
Total liabilities		11,565,426										11,596,759										11,766,765
Stockholders’ equity		1,682,647										1,715,134										1,674,453
Total liabilities and stockholders’ equity	$	13,248,073									$	13,311,893									$	13,441,218
Net interest income					$	87,636									$	86,652									$	82,263
Net interest rate spread (4)								2.37	%									2.35	%									2.11	%
Net interest margin (5)								2.91	%									2.90	%									2.71	%
Total cost of deposits (including non-interest-bearing deposits)								2.06	%									2.06	%									2.37	%

		For the Six Months Ended June 30,
		2025										2024
	(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	$	106,230			$	2,073		3.94	%		$	147,883			$	3,995		5.43	%
	Securities (2)		1,959,922				37,958		3.91				2,078,566				43,863		4.24
	Loans receivable, net (3)
	Commercial		6,783,823				198,265		5.89				6,885,518				207,041		6.05
	Residential real estate		3,078,524				63,131		4.10				2,976,608				57,668		3.87
	Other consumer		226,923				7,101		6.31				247,210				8,461		6.88
	Allowance for loan credit losses, net of deferred loan costs and fees		(64,121	)			—		—				(58,705	)			—		—
	Loans receivable, net		10,025,149				268,497		5.39				10,050,631				273,170		5.46
	Total interest-earning assets		12,091,301				308,528		5.14				12,277,080				321,028		5.25
	Non-interest-earning assets		1,188,506										1,221,889
	Total assets	$	13,279,807									$	13,498,969
	Liabilities and Stockholders’ Equity:
	Interest-bearing liabilities:
	Interest-bearing checking	$	4,062,502				42,039		2.09	%		$	3,894,013				41,838		2.16	%
	Money market		1,332,154				19,070		2.89				1,137,716				19,653		3.47
	Savings		1,043,674				3,465		0.67				1,259,960				7,066		1.13
	Time deposits		2,046,927				38,745		3.82				2,375,760				51,369		4.35
	Total		8,485,257				103,319		2.46				8,667,449				119,926		2.78
	FHLB Advances		938,200				21,293		4.58				678,309				16,517		4.90
	Securities sold under agreements to repurchase		62,385				846		2.73				70,403				889		2.54
	Other borrowings		271,840				8,782		6.51				521,084				15,209		5.87
	Total borrowings		1,272,425				30,921		4.90				1,269,796				32,615		5.17
	Total interest-bearing liabilities		9,757,682				134,240		2.77				9,937,245				152,541		3.09
	Non-interest-bearing deposits		1,618,622										1,630,374
	Non-interest-bearing liabilities		204,702										257,603
	Total liabilities		11,581,006										11,825,222
	Stockholders’ equity		1,698,801										1,673,747
	Total liabilities and stockholders’ equity	$	13,279,807									$	13,498,969
	Net interest income					$	174,288									$	168,487
	Net interest rate spread (4)								2.37	%									2.16	%
	Net interest margin (5)								2.91	%									2.76	%
	Total cost of deposits (including non-interest- bearing deposits)								2.06	%									2.34	%

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

OceanFirst Financial Corp. SELECTED QUARTERLY FINANCIAL DATA (in thousands, except per share amounts)
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Selected Financial Condition Data:
Total assets	$	13,327,847		$	13,309,278		$	13,421,247		$	13,488,483		$	13,321,755
Debt securities available-for-sale, at estimated fair value		735,561			746,168			827,500			911,753			721,484
Debt securities held-to-maturity, net of allowance for securities       credit losses		968,969			1,005,476			1,045,875			1,075,131			1,105,843
Equity investments		87,808			87,365			84,104			95,688			104,132
Restricted equity investments, at cost		106,538			102,172			108,634			98,545			92,679
Loans receivable, net of allowance for loan credit losses		10,119,781			10,058,072			10,055,429			9,963,598			9,961,117
Deposits		10,232,442			10,177,023			10,066,342			10,116,167			9,994,017
Federal Home Loan Bank advances		938,687			891,021			1,072,611			891,860			789,337
Securities sold under agreements to repurchase from customers       and other borrowings		259,509			262,940			258,113			501,090			504,490
Total stockholders’ equity		1,643,680			1,709,117			1,702,757			1,694,508			1,676,669

	For the Three Months Ended,
	June 30, 2025			March 31, 2025				December 31, 2024				September 30, 2024			June 30, 2024
Selected Operating Data:
Interest income	$	154,825		$	153,703			$	159,620			$	161,525		$	159,426
Interest expense		67,189			67,051				76,291				79,306			77,163
Net interest income		87,636			86,652				83,329				82,219			82,263
Provision for credit losses (excluding Spring Garden)		3,039			5,340				2,041				517			3,114
Spring Garden opening provision for credit losses		—			—				1,426				—			—
Net interest income after provision for credit losses		84,597			81,312				79,862				81,702			79,149
Other income (excluding equity investments and sale of trust)		11,245			11,048				12,237				11,826			10,098
Net gain (loss) on equity investments		488			205				(5	)			1,420			887
Net gain on sale of trust business		—			—				—				1,438			—
Operating expenses (excluding merger related expenses)		71,474			64,294				64,739				62,067			58,620
Merger related expenses		—			—				110				1,669			—
Income before provision for income taxes		24,856			28,271				27,245				32,650			31,514
Provision for income taxes		5,771			6,808				5,083				7,464			7,082
Net income		19,085			21,463				22,162				25,186			24,432
Net income (loss) attributable to non-controlling interest		39			(46	)			253				70			59
Net income attributable to OceanFirst Financial Corp.	$	19,046		$	21,509			$	21,909			$	25,116		$	24,373
Net income available to common stockholders	$	16,200		$	20,505			$	20,905			$	24,112		$	23,369
Diluted earnings per share	$	0.28		$	0.35			$	0.36			$	0.42		$	0.40
Net accretion/amortization of purchase accounting adjustments       included in net interest income	$	420		$	219			$	20			$	741		$	1,086

	At or For the Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)	0.49	%		0.62	%		0.61	%		0.71	%		0.70	%
Return on average tangible assets (3) (4)	0.51			0.65			0.64			0.74			0.73
Return on average stockholders’ equity (3)	3.86			4.85			4.88			5.68			5.61
Return on average tangible stockholders’ equity (3) (4)	5.66			7.05			7.12			8.16			8.10
Return on average tangible common equity (3) (4)	5.66			7.40			7.47			8.57			8.51
Stockholders’ equity to total assets	12.33			12.84			12.69			12.56			12.59
Tangible stockholders’ equity to tangible assets (4)	8.67			9.19			9.06			9.10			9.08
Tangible common equity to tangible assets (4)	8.67			8.76			8.62			8.68			8.64
Net interest rate spread	2.37			2.35			2.11			2.06			2.11
Net interest margin	2.91			2.90			2.69			2.67			2.71
Operating expenses to average assets	2.16			1.96			1.90			1.89			1.75
Efficiency ratio (5)	71.93			65.67			67.86			65.77			62.86
Loan-to-deposit ratio	99.50			99.50			100.50			99.10			100.30

	For the Six Months Ended June 30,
	2025			2024
Performance Ratios (Annualized):
Return on average assets (3)	0.56	%		0.76	%
Return on average tangible assets (3) (4)	0.58			0.79
Return on average stockholders’ equity (3)	4.36			6.13
Return on average tangible stockholders’ equity (3) (4)	6.36			8.86
Return on average tangible common equity (3) (4)	6.36			9.30
Net interest rate spread	2.37			2.16
Net interest margin	2.91			2.76
Operating expenses to average assets	2.06			1.75
Efficiency ratio (5)	68.82			61.17

		At or For the Three Months Ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)		$	141,921			$	149,106			$	147,956			$	152,797			$	150,519
Nest Egg AUA/M			462,664				453,803				431,434				430,413				403,647
Total AUA/M			604,585				602,909				579,390				583,210				554,166
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			28.64				29.27				29.08				29.02				28.67
Tangible book value per common share at end of period (4)			19.34				19.16				18.98				19.28				18.93
Common shares outstanding at end of period			57,383,975				58,383,525				58,554,871				58,397,094				58,481,418
Preferred shares outstanding at end of period			—				57,370				57,370				57,370				57,370
Number of full-service customer facilities:			40				39				39				39				39
Quarterly Average Balances
	Total securities	$	1,917,114			$	2,003,206			$	2,116,911			$	2,063,633			$	2,058,711
	Loans receivable, net		10,036,785				10,013,383				10,018,742				9,958,794				10,012,491
	Total interest-earning assets		12,065,530				12,112,028				12,331,483				12,232,672				12,203,776
	Total goodwill and intangibles		534,734				535,657				534,942				513,731				514,535
	Total assets		13,248,073				13,311,893				13,545,052				13,438,696				13,441,218
	Time deposits		2,175,564				1,916,109				2,212,750				2,339,370				2,337,458
	Total deposits (including non-interest-bearing deposits)		10,176,895				10,030,051				10,286,489				10,175,856				10,173,315
	Total borrowings		1,201,878				1,343,757				1,328,016				1,333,245				1,325,372
	Total interest-bearing liabilities		9,739,728				9,775,836				9,987,129				9,874,358				9,872,522
	Non-interest bearing deposits		1,639,045				1,597,972				1,627,376				1,634,743				1,626,165
	Stockholders' equity		1,682,647				1,715,134				1,703,326				1,689,035				1,674,453
	Tangible stockholders’ equity (4)		1,147,913				1,179,477				1,168,384				1,175,304				1,159,918
Quarterly Yields and Costs
	Total securities		3.82	%			3.99	%			4.09	%			4.23	%			4.22	%
	Loans receivable, net		5.41				5.37				5.38				5.46				5.46
	Total interest-earning assets		5.14				5.13				5.15				5.26				5.25
	Time deposits		3.74				3.91				4.34				4.58				4.46
	Total cost of deposits (including non-interest-bearing deposits)		2.06				2.06				2.32				2.44				2.37
	Total borrowed funds		4.98				4.83				4.91				5.07				5.19
	Total interest-bearing liabilities		2.77				2.78				3.04				3.20				3.14
	Net interest spread		2.37				2.35				2.11				2.06				2.11
	Net interest margin		2.91				2.90				2.69				2.67				2.71

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

OceanFirst Financial Corp. OTHER ITEMS (dollars in thousands, except per share amounts)
NON-GAAP RECONCILIATION
	For the Three Months Ended
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Core Earnings:
Net income available to common stockholders (GAAP)	$	16,200			$	20,505			$	20,905			$	24,112			$	23,369
Adjustments to exclude the impact of non-recurring and non-core items:
Spring Garden opening provision for credit losses		—				—				1,426				—				—
Net (gain) loss on equity investments		(488	)			(205	)			5				(1,420	)			(887	)
Net gain on sale of trust business		—				—				—				(1,438	)			—
Merger related expenses		—				—				110				1,669				—
Income tax expense (benefit) on items		115				49				(388	)			270				188
Loss on redemption of preferred stock		1,842				—				—				—				—
Core earnings (Non-GAAP)	$	17,669			$	20,349			$	22,058			$	23,193			$	22,670
Income tax expense	$	5,771			$	6,808			$	5,083			$	7,464			$	7,082
Provision for credit losses		3,039				5,340				3,467				517				3,114
Less: non-core provision for credit losses		—				—				1,426				—				—
Less: income tax expense (benefit) on non-core items		115				49				(388	)			270				188
Core earnings PTPP (Non-GAAP)	$	26,364			$	32,448			$	29,570			$	30,904			$	32,678
Core earnings diluted earnings per share	$	0.31			$	0.35			$	0.38			$	0.39			$	0.39
Core earnings PTPP diluted earnings per share	$	0.46			$	0.56			$	0.51			$	0.53			$	0.56
Core Ratios (Annualized):
Return on average assets		0.53	%			0.62	%			0.65	%			0.69	%			0.68	%
Return on average tangible stockholders’ equity		6.17				7.00				7.51				7.85				7.86
Return on average tangible common equity		6.17				7.34				7.89				8.24				8.26
Efficiency ratio		72.28				65.81				67.74				66.00				63.47

	For the Six Months Ended June 30,
	2025				2024
Core Earnings:
Net income available to common stockholders (GAAP)	$	36,705			$	51,032
Adjustments to exclude the impact of non-recurring and non-core items:
Net gain on equity investments(1)		(693	)			(2,810	)
Net gain on sale of trust business		—				(1,162	)
FDIC special assessment		—				418
Income tax expense on items		164				830
Loss on redemption of preferred stock		1,842				—
Core earnings (Non-GAAP)	$	38,018			$	48,308
Income tax expense	$	12,579			$	17,719
Provision for credit losses		8,379				3,705
Less: income tax expense on non-core items		164				830
Core earnings PTPP (Non-GAAP)	$	58,812			$	68,902
Core diluted earnings per share	$	0.66			$	0.83
Core earnings PTPP diluted earnings per share	$	1.02			$	1.18
Core Ratios (Annualized):
Return on average assets		0.58	%			0.72	%
Return on average tangible stockholders’ equity		6.59				8.38
Return on average tangible common equity		6.59				8.81
Efficiency ratio		69.06				62.24

	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
Tangible Equity:
Total stockholders' equity	$	1,643,680			$	1,709,117			$	1,702,757			$	1,694,508			$	1,676,669
Less:
Goodwill		523,308				523,308				523,308				506,146				506,146
Intangibles		10,834				11,740				12,680				7,056				7,859
Tangible stockholders' equity		1,109,538				1,174,069				1,166,769				1,181,306				1,162,664
Less:
Preferred stock		—				55,527				55,527				55,527				55,527
Tangible common equity	$	1,109,538			$	1,118,542			$	1,111,242			$	1,125,779			$	1,107,137
Tangible Assets:
Total assets	$	13,327,847			$	13,309,278			$	13,421,247			$	13,488,483			$	13,321,755
Less:
Goodwill		523,308				523,308				523,308				506,146				506,146
Intangibles		10,834				11,740				12,680				7,056				7,859
Tangible assets	$	12,793,705			$	12,774,230			$	12,885,259			$	12,975,281			$	12,807,750
Tangible stockholders' equity to tangible assets		8.67	%			9.19	%			9.06	%			9.10	%			9.08	%
Tangible common equity to tangible assets		8.67	%			8.76	%			8.62	%			8.68	%			8.64	%

Company Contact:

Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com

FAQ

What was OceanFirst Financial's (OCFC) earnings per share in Q2 2025?

OCFC reported earnings of $0.28 per diluted share in Q2 2025, down from $0.40 per share in Q2 2024.

How much did OceanFirst's loan portfolio grow in Q2 2025?

Total loans increased by $59.8 million, representing a 2% annualized growth rate, with commercial and industrial loans growing by $131.7 million.

What was OceanFirst's net interest margin in Q2 2025?

OceanFirst's net interest margin was 2.91%, an increase from 2.71% in the same quarter last year.

How much did OceanFirst's Premier Banking initiative generate in deposits?

The Premier Banking initiative, launched in mid-April 2025, generated approximately $115 million in new deposits and secured 200 new relationships.

What dividend did OceanFirst declare for Q2 2025?

OceanFirst declared its 114th consecutive quarterly cash dividend of $0.20 per share, payable on August 15, 2025.

How many shares did OceanFirst repurchase in Q2 2025?

OceanFirst repurchased 1,003,550 shares during Q2 2025 and also redeemed all of its preferred stock for $57.4 million.