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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 19, 2023
OCEANFIRST FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
Delaware 001-11713 22-3412577
(State or other jurisdiction of
incorporation or organization)		 (Commission
File No.)		 (IRS Employer
Identification No.)
110 West Front Street, Red Bank, New Jersey 07701
(Address of principal executive offices, including zip code)
(732)240-4500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange in which registered
Common stock, $0.01 par value per shareOCFCNASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)OCFCPNASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 19, 2023, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2023. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01    REGULATION FD DISCLOSURE
The Company is scheduled to make presentations to current and prospective investors after October 19, 2023. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which OceanFirst Financial Corp. will make available at these presentations and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed “filed” for any purpose.

ITEM 8.01OTHER EVENTS
In the press release described in Item 2.02, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.4375 per share for every depositary share, representing 1/40th interest in the Series A Preferred Stock, payable on November 15, 2023 to stockholders of record on October 31, 2023.
In the press release described in Item 2.02, the Company announced that the Board of Directors declared a regular quarterly cash dividend on the Company’s outstanding common stock. The cash dividend will be in the amount of $0.20 per share and will be payable on November 17, 2023 to the stockholders of record at the close of business on November 6, 2023.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
 
(d)EXHIBITS
Press Release datedOctober 19, 2023
Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after October 19, 2023.



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

OCEANFIRST FINANCIAL CORP.
Dated:October 19, 2023/s/ Patrick S. Barrett
Patrick S. Barrett
Executive Vice President and Chief Financial Officer




















































oceanfirstpressreleas19a.jpg
Press Release
Exhibit 99.1
Company Contact:                                        
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com


FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS
    RED BANK, NEW JERSEY, October 19, 2023 - 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 $19.7 million, or $0.33 per diluted share, for the three months ended September 30, 2023, as compared to $37.6 million, or $0.64 per diluted share, for the corresponding prior year period, and $26.8 million, or $0.45 per diluted share, for the prior linked quarter. For the nine months ended September 30, 2023, the Company reported net income available to common stockholders of $73.3 million, or $1.24 per diluted share, as compared to $90.3 million, or $1.53 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Nine Months Ended,
Performance Ratios (Annualized):September 30,June 30,September 30,September 30,September 30,
20232023202220232022
Return on average assets 0.57 %0.80 %1.19 %0.73 %0.99 %
Return on average stockholders’ equity4.75 6.61 9.68 6.03 7.87 
Return on average tangible stockholders’ equity (a)
6.93 9.70 14.62 8.85 11.91 
Return on average tangible common equity (a)
7.29 10.21 15.47 9.31 12.60 
Efficiency ratio63.37 62.28 53.10 62.15 57.90 
Net interest margin2.91 3.02 3.36 3.09 3.28 
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”), which are non-GAAP (“generally accepted accounting principles”) financial measures, 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” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.



Core earnings1 for the three and nine months ended September 30, 2023 were $18.6 million and $78.4 million, respectively, or $0.32 and $1.33 per diluted share, representing a decrease from $35.0 million and $98.4 million, or $0.60 and $1.67 per diluted share, for the corresponding prior year periods, and a decrease from $27.2 million, or $0.46 per diluted share, for the prior linked quarter.
Core earnings PTPP1 for the three and nine months ended September 30, 2023 were $35.0 million and $118.7 million, respectively, or $0.59 and $2.01 per diluted share, as compared to $47.5 million and $134.2 million, or $0.81 and $2.28 per diluted share, for the corresponding prior year periods, and $37.6 million, or $0.64 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
Core Ratios1 (Annualized):
20232023202220232022
Return on average assets 0.54 %0.81 %1.11 %0.78 %1.08 %
Return on average tangible stockholders’ equity6.54 9.84 13.62 9.46 12.98 
Return on average tangible common equity6.88 10.36 14.40 9.96 13.73 
Efficiency ratio64.29 61.94 54.80 60.79 55.51 
Core diluted earnings per share$0.32 $0.46 $0.60 $1.33 $1.67 
Core PTPP diluted earnings per share 0.59 0.64 0.81 2.01 2.28 

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 (benefit), net loss (gain) on equity investments, net loss on sale of investments, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (benefit). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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Key developments for the recent quarter are described below:
•Deposit Growth: Total deposits increased $375.6 million, or 4%, as compared to the prior linked quarter. The current quarter includes a reduction in brokered time deposits of $425.7 million and a loan-to-deposit ratio of 96.10%. The Company’s non-interest-bearing deposits declined modestly and represented 17% of the total deposits.
•Asset Quality: Asset quality metrics remains strong, despite the impact of a charge-off related to a single credit relationship announced on September 14, 2023. Criticized and classified loans, and non-performing loans both as a percent of total loans were 1.30% and 0.20%, respectively, at September 30, 2023.
•Strong Capital: The Company’s estimated common equity tier 1 capital ratio remained above “well-capitalized” levels, at 10.36% at September 30, 2023. Book value and tangible book value per share were $27.56 and $17.932, respectively, increasing $0.19 and $0.21 from the prior linked quarter.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to report continued growth in deposits, a reduction on brokered deposits, and strengthened capital position. While our margin compressed, we remain focused on high quality growth and prudent management of the balance sheet for long-term market conditions.” Mr. Maher added, “Additionally, thank you to our exemplary employees who volunteered over 2,900 hours across 90 projects serving our communities during our second annual CommUNITYFirst day.”
The Company’s Board of Directors declared its 107th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on November 17, 2023 to common stockholders of record on November 6, 2023. The Company’s Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share,
2 Tangible book value per common share and tangible common equity to tangible assets, non-GAAP financial measures, 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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representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on November 15, 2023 to preferred stockholders of record on October 31, 2023.
Results of Operations
The current quarter results were impacted by the following matters. Net interest income and margin were adversely impacted by a continued mix-shift and repricing to higher cost deposits that outpaced the repricing and increase in yields on interest-earning assets. Deposit betas increased modestly to 35%, from 29%3. Additionally, the current quarter results were impacted by an increase in non-performing loans due to a single commercial real estate credit relationship totaling $17 million, which was written down to an estimated realizable value of $8.8 million4. The credit was originated in June 2019 and is secured by an office building in Midtown Manhattan, New York City. The credit was also included in total delinquent loans 30 to 89 days at September 30, 2023. Lastly, the Company recognized one-time compensation and benefits expenses of $2.4 million attributable to severance and other program costs relating to the Company’s performance improvement initiatives.
Net Interest Income and Margin
Three months ended September 30, 2023 vs. September 30, 2022
Net interest income decreased to $91.0 million, from $96.0 million, primarily reflecting the net impact of the higher interest rate environment.
Net interest margin decreased to 2.91%, from 3.36%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.06% and 0.08% for the respective three months, net interest margin decreased to 2.85%, from 3.28%. Net interest margin decreased primarily due to the
3 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).
4 Refer to the previously filed Current Report on Form 8-K filed September 14, 2023 for additional information.
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increase in cost of funds outpacing the increase in yield on average interest earning assets in the current interest rate environment and elevated levels of on-balance sheet cash.
Average interest-earning assets increased by $1.06 billion, primarily driven by increases of $414.2 million in commercial loans and $405.2 million in deposits and short-term investments. The average yield for interest-earning assets increased to 5.08%, from 3.88%.
The cost of average interest-bearing liabilities increased to 2.71%, from 0.69%, due to higher cost of deposits and higher costs of Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits (including non-interest bearing deposits) increased to 1.99%, from 0.36%.
Nine months ended September 30, 2023 vs. September 30, 2022
Net interest income increased to $281.9 million, from $271.0 million, reflecting the net impact of the higher interest rate environment.
Net interest margin decreased to 3.09%, from 3.28%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.13% for the respective nine months, net interest margin decreased to 3.04%, from 3.15%.
Average interest-earning assets increased by $1.17 billion, primarily driven by loan growth of $819.7 million. The cost of average interest-bearing liabilities increased to 2.29%, from 0.49%. The total cost of deposits (including non-interest bearing deposits) increased to 1.48%, from 0.24%. The yield on average interest earning assets increased to 4.90% from 3.64%. The drivers for the three months ended were also the drivers for the nine months ended September 30, 2023.
Three months ended September 30, 2023 vs. June 30, 2023
Net interest income decreased by $1.1 million, reflecting a decrease in net interest margin to 2.91%, from 3.02%, as the increase in cost of funds outpaced the increase in yield of average interest earning assets. Excluding the impact of purchase accounting accretion and prepayment fees of 0.06% and 0.05% for the respective three months, net interest margin decreased to 2.85%, from 2.97%. The
5

compression in net interest margin was primarily attributable to higher cost of deposits and the impact of excess cash held.
Average interest-earning assets increased by $134.7 million, primarily due to elevated levels of cash held. The yield on average interest-earning assets increased to 5.08%, from 4.91%.
The total cost of average interest-bearing liabilities increased to 2.71%, from 2.39%, and the total cost of deposits (including non-interest bearing deposits) increased to 1.99%, from 1.52%. Average interest-bearing liabilities increased $157.2 million, which included a mix-shift from FHLB advances to time deposits.
Provision for Credit Losses
    Provision for credit losses for the three and nine months ended September 30, 2023 was $10.3 million and $14.5 million, respectively, as compared to $1.0 million and $4.1 million for the corresponding prior year periods, and $1.2 million in the prior linked quarter. The current quarter provision included the net impact of the $8.4 million charge-off noted above and, to a lesser extent, elevated risks and uncertainty in macro-economic conditions in a downside forecast scenario.
Net loan charge-offs were $8.3 million for both the three and nine months ended September 30, 2023, respectively, as compared to net loan recoveries of $252,000 and $335,000 for the three and nine months ended September 30, 2022, respectively. Net loan charge-offs were $123,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.
Non-interest Income
Three months ended September 30, 2023 vs. September 30, 2022    
Other income decreased to $10.8 million, as compared to $15.2 million. Other income was favorably impacted by non-core operations of $1.5 million and $3.4 million, for the respective quarters, primarily related to net gains on equity investments.
Excluding non-core operations, other income decreased $2.5 million. The primary drivers were decreases in commercial loan swap income of $1.5 million and fees and service charges of $1.1 million,
6

which were adversely impacted by the current interest rate environment resulting in lower swap volume and mortgage activity.
Nine months ended September 30, 2023 vs. September 30, 2022
Other income decreased to $21.8 million, as compared to $31.5 million. Other income was adversely impacted by non-core operations of $6.6 million and $7.5 million, for the respective periods, primarily related to net losses on equity investments. The current year’s non-core operations also included $5.3 million of losses related to the sale of investments in the first quarter.
Excluding non-core operations, other income decreased $10.7 million. The primary drivers were decreases in commercial loan swap income on lower volume of $5.8 million, fees and service charges of $1.1 million on lower title activity, and income from bank owned life insurance of $1.0 million on non-recurring death benefits recognized in the prior year. Additionally, bankcard services revenue decreased $3.4 million, due to the Durbin Amendment which became effective for the Company on July 1, 2022.
Three months ended September 30, 2023 vs. June 30, 2023
Other income in the prior linked quarter was $8.9 million and included non-core operations of $559,000 primarily related to net losses on preferred stock equity investments. Excluding non-core operations, other income decreased by $177,000.
Non-interest Expense
Three months ended September 30, 2023 vs. September 30, 2022
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Operating expenses increased by $5.4 million from $59.0 million to $64.5 million. This was due to increases in professional fees of $2.8 million and $2.4 million in compensation and employee benefits expenses related to the Company’s ongoing investments to improve profitability and operational efficiencies, and one-time related severance and other program costs. The increase in compensation and benefits expense were partly offset by decreased employee medical benefit claims. The current quarter also included increases to federal deposit insurance and regulatory assessments of $800,000 primarily due to new assessment rates that went into effect on January 1, 2023.
Nine months ended September 30, 2023 vs. September 30, 2022
Operating expenses increased to $188.7 million, as compared to $175.2 million. Operating expenses for the periods were adversely impacted by $92,000 and $3.1 million of non-core operations, respectively.
Excluding non-core operations, operating expenses increased by $16.5 million. This was due to increases in professional fees of $7.1 million and federal deposit insurance and regulatory assessments of $1.3 million that were driven by the same factors for the three months ended. The increase in compensation and benefits expense of $5.7 million was due to the $2.4 million increase noted above and merit-related increases.
Three months ended September 30, 2023 vs. June 30, 2023
Operating expenses increased $1.6 million primarily due to an increase in compensation and benefits expense of $1.3 million.
Income Tax Expense
The provision for income taxes was $6.5 million and $24.1 million for the three and nine months ended September 30, 2023, respectively, as compared to $12.3 million and $29.2 million for the same prior year periods, and $9.0 million for the prior linked quarter. The effective tax rate was 23.9% and 24.0% for the three and nine months ended September 30, 2023, respectively, as compared to 24.1% and 23.7% for the same prior year periods, and 24.4% for the prior linked quarter.
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Financial Condition
September 30, 2023 vs. December 31, 2022
Total assets increased by $394.3 million to $13.50 billion, from $13.10 billion, primarily due to higher cash balances and loan growth. Cash and due from banks increased $240.9 million to $408.9 million, from $167.9 million as the Company maintained elevated levels of on-balance sheet cash from net deposit inflows. Total loans increased by $205.5 million to $10.12 billion, from $9.92 billion, due to loan originations.
    Total liabilities increased by $342.1 million to $11.86 billion, from $11.52 billion. Deposits increased by $858.7 million to $10.53 billion, from $9.68 billion. Time deposits increased to $2.65 billion, from $1.54 billion, or 25.2% and 15.9% of total deposits, respectively. Brokered time deposits increased $122.1 million and retail time deposits increased $988.0 million. The loan-to-deposit ratio was 96.10%, as compared to 102.50%. FHLB advances decreased by $605.1 million to $606.1 million, from $1.21 billion.
Other liabilities increased by $65.6 million to $411.7 million, from $346.2 million, primarily due to an increase in the market values associated with customer interest rate swaps and related collateral received from counterparties.
    Total stockholders’ equity increased to $1.64 billion, as compared to $1.59 billion, primarily reflecting net income net of dividends for the nine months ended September 30, 2023. Additionally, accumulated other comprehensive loss decreased by $7.2 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
The Company completed its annual goodwill impairment test as of August 31, 2023. Based on a quantitative assessment, the Company concluded that goodwill was not impaired. However, the Company continues to monitor its goodwill as further and continued negative industry and economic trends and decline in the Company’s stock price may result in a re-evaluation before the next required annual test.
9

For the nine months ended September 30, 2023, the Company did not repurchase shares under its stock repurchase program. There were 2,934,438 shares available for repurchase at September 30, 2023 under the existing repurchase program. Book value per common share increased to $27.56, as compared to $26.81. Tangible book value per common share2 increased to $17.93, as compared to $17.08.
Asset Quality
September 30, 2023 vs. December 31, 2022
At September 30, 2023, non-performing loans and 30 to 89 days delinquent loans included the remaining exposure of $8.8 million on the commercial real estate relationship that was charged-off during the period.
The Company’s non-performing loans increased to $30.1 million from $23.3 million and represented 0.30% and 0.23% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 212.23%, as compared to 244.25%. The level of 30 to 89 days delinquent loans increased to $20.6 million, from $14.1 million. The Company’s allowance for loan credit losses was 0.63% of total loans, as compared to 0.57%. Refer to “Provision for Credit Losses” section for further discussion.
The Company’s asset quality excluding purchased with credit deterioration (“PCD”) loans were as follows. Non-performing loans increased to $26.9 million, from $19.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 237.28%, as compared to 294.10%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $7.6 million, from $10.5 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $72.6 million, or 0.72% of total loans, as compared to $68.2 million, or 0.69% 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, 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, October 20, 2023 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 472846. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (808) 304-5227, access code 728904, from one hour after the end of the call until November 19, 2023. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
* * *
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    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.5 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

Forward-Looking Statements
    
In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, potential goodwill impairment, future 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, changes in liquidity, including the size and composition of the Company’s deposit portfolio, including the percentage of uninsured deposits in the portfolio, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of the COVID-19 pandemic or any other pandemic 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, 2022, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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

September 30,June 30,December 31,September 30,
2023202320222022
(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and due from banks$408,882 $457,747 $167,946 $170,668 
Debt securities available-for-sale, at estimated fair value453,208 452,016 457,648 470,300 
Debt securities held-to-maturity, net of allowance for securities credit losses of $932 at September 30, 2023, $964 at June 30, 2023, $1,128 at December 31, 2022, and $1,234 at September 30, 2022 (estimated fair value of $1,047,342 at September 30, 2023, $1,109,756 at June 30, 2023, $1,110,041 at December 31, 2022, and $905,426 at September 30, 2022)
1,189,339 1,222,507 1,221,138 1,027,712 
Equity investments97,908 96,452 102,037 81,722 
Restricted equity investments, at cost82,484 105,305 109,278 77,556 
Loans receivable, net of allowance for loan credit losses of $63,877 at September 30, 2023, $61,791 at June 30, 2023, $56,824 at December 31, 2022 and $53,521 at September 30, 2022
10,068,156 10,030,106 9,868,718 9,672,488 
Loans held-for-sale— 4,200 690 3,549 
Interest and dividends receivable50,030 47,933 44,704 38,388 
Premises and equipment, net122,646 124,139 126,705 127,868 
Bank owned life insurance265,071 263,836 261,603 261,118 
Assets held for sale3,004 3,608 2,719 3,216 
Goodwill506,146 506,146 506,146 506,146 
Core deposit intangible10,489 11,476 13,497 14,656 
Other assets240,820 213,432 221,067 228,066 
Total assets$13,498,183 $13,538,903 $13,103,896 $12,683,453 
Liabilities and Stockholders’ Equity
Deposits$10,533,929 $10,158,337 $9,675,206 $9,959,469 
Federal Home Loan Bank advances606,056 1,091,666 1,211,166 514,200 
Securities sold under agreements to repurchase with customers82,981 74,452 69,097 96,289 
Other borrowings196,183 195,925 195,403 194,914 
Advances by borrowers for taxes and insurance29,696 27,839 21,405 25,457 
Other liabilities411,734 364,401 346,155 352,908 
Total liabilities11,860,579 11,912,620 11,518,432 11,143,237 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,636,891 1,625,435 1,584,662 1,539,253 
Non-controlling interest713 848 802 963 
Total stockholders’ equity1,637,604 1,626,283 1,585,464 1,540,216 
Total liabilities and stockholders’ equity$13,498,183 $13,538,903 $13,103,896 $12,683,453 













13

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Nine Months Ended,
September 30,June 30,September 30,September 30,September 30,
20232023202220232022
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$133,931 $129,104 $100,141 $384,755 $273,340 
Debt securities15,223 14,320 8,479 43,829 23,456 
Equity investments and other9,256 6,672 1,879 18,956 4,102 
Total interest income158,410 150,096 110,499 447,540 300,898 
Interest expense:
Deposits53,287 37,934 9,238 112,551 17,596 
Borrowed funds14,127 20,053 5,296 53,082 12,313 
Total interest expense67,414 57,987 14,534 165,633 29,909 
Net interest income90,996 92,109 95,965 281,907 270,989 
Provision for credit losses10,283 1,229 1,016 14,525 4,121 
Net interest income after provision for credit losses80,713 90,880 94,949 267,382 266,868 
Other income:
Bankcard services revenue1,507 1,544 1,509 4,381 7,782 
Trust and asset management revenue662 645 568 1,919 1,835 
Fees and service charges5,178 5,602 6,320 15,939 17,026 
Net gain on sales of loans66 33 168 119 348 
Net gain (loss) on equity investments1,452 (559)3,362 (5,908)(7,502)
Net gain from other real estate operations— — — — 48 
Income from bank owned life insurance1,390 1,182 1,356 3,853 4,881 
Commercial loan swap income11 — 1,471 712 6,546 
Other496 481 396 748 579 
Total other income10,762 8,928 15,150 21,763 31,543 
Operating expenses:
Compensation and employee benefits35,534 34,222 34,124 103,676 97,972 
Occupancy5,466 5,265 5,288 15,970 15,790 
Equipment1,172 1,101 1,150 3,478 3,856 
Marketing1,183 961 655 3,126 2,242 
Federal deposit insurance and regulatory assessments2,557 2,465 1,757 6,771 5,435 
Data processing6,086 6,165 6,560 18,405 18,466 
Check card processing1,154 1,214 1,231 3,649 3,728 
Professional fees5,258 5,083 2,502 15,439 8,296 
Amortization of core deposit intangible987 994 1,171 3,008 3,559 
Branch consolidation (benefit) expense, net— — (346)70 602 
Merger related expenses— — 298 22 2,459 
Other operating expense5,087 5,460 4,607 15,109 12,748 
Total operating expenses64,484 62,930 58,997 188,723 175,153 
Income before provision for income taxes26,991 36,878 51,102 100,422 123,258 
Provision for income taxes6,459 8,996 12,298 24,109 29,212 
Net income20,532 27,882 38,804 76,313 94,046 
Net (loss) income attributable to non-controlling interest(135)85 193 (34)715 
Net income attributable to OceanFirst Financial Corp.20,667 27,797 38,611 76,347 93,331 
Dividends on preferred shares1,004 1,004 1,004 3,012 3,012 
Net income available to common stockholders$19,663 $26,793 $37,607 $73,335 $90,319 
Basic earnings per share$0.33 $0.45 $0.64 $1.24 $1.54 
Diluted earnings per share$0.33 $0.45 $0.64 $1.24 $1.53 
Average basic shares outstanding59,104 59,147 58,681 59,037 58,777 
Average diluted shares outstanding59,111 59,153 58,801 59,068 58,918 
14

OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Commercial:
Commercial real estate - investor$5,334,279 $5,319,686 $5,296,661 $5,171,952 $5,007,637 
Commercial real estate - owner-occupied957,216 981,618 986,366 997,367 983,784 
Commercial and industrial652,119 620,284 622,201 622,372 652,620 
Total commercial6,943,614 6,921,588 6,905,228 6,791,691 6,644,041 
Consumer:
Residential real estate2,928,259 2,906,556 2,881,811 2,861,991 2,813,209 
Home equity loans and lines and other consumer ("other consumer")251,698 255,486 252,773 264,372 261,510 
Total consumer3,179,957 3,162,042 3,134,584 3,126,363 3,074,719 
Total loans10,123,571 10,083,630 10,039,812 9,918,054 9,718,760 
Deferred origination costs (fees), net8,462 8,267 7,332 7,488 7,249 
Allowance for loan credit losses(63,877)(61,791)(60,195)(56,824)(53,521)
Loans receivable, net$10,068,156 $10,030,106 $9,986,949 $9,868,718 $9,672,488 
Mortgage loans serviced for others$52,796 $50,820 $50,421 $51,736 $53,869 
At September 30, 2023 Average Yield
Loan pipeline (1):
Commercial7.85 %$50,756 $39,164 $236,550 $114,232 $339,487 
Residential real estate7.11 66,682 58,022 61,258 36,958 80,591 
Other consumer7.87 13,795 18,621 20,589 14,890 19,395 
Total7.48 %$131,233 $115,807 $318,397 $166,080 $439,473 
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Average Yield
Loan originations:
Commercial8.11 %$90,263 $197,732 $200,504 $539,949 $356,726 
Residential real estate6.69 92,299 100,542 65,580 101,530 
(2)
129,808 
Other consumer7.96 17,019 22,487 15,927 42,624 57,254 
Total7.44 %$199,581 $320,761 $282,011 $684,103 $543,788 
Loans sold$15,404 

$18,664 $3,861 $2,340 $9,425 
(3)
(1)Loan pipeline includes loans approved but not funded.
(2)Excludes residential real estate loan pool purchases of $9.9 million for the three months ended December 31, 2022.
(3)Excludes the sale of a small business administration loan of $1.2 million for the three months ended September 30, 2022.    
DEPOSITSAt
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Type of Account
Non-interest-bearing$1,827,381 $1,854,136 $1,984,197 $2,101,308 $2,325,547 
Interest-bearing checking3,708,874 3,537,834 3,697,223 3,829,683 3,909,864 
Money market860,025 770,440 615,993 714,386 749,229 
Savings1,484,000 1,229,897 1,308,715 1,487,809 1,570,472 
Time deposits (1)
2,653,649 2,766,030 2,386,967 1,542,020 1,404,357 
  Total deposits$10,533,929 $10,158,337 $9,993,095 $9,675,206 $9,959,469 
(1)Includes brokered time deposits of $995.5 million, $1.42 billion, $1.24 billion, $873.4 million, and $828.7 million at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively.

15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY (1)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Non-performing loans:
Commercial real estate - investor$20,723 $13,000 $13,643 $10,483 $9,866 
Commercial real estate - owner-occupied240 565 251 4,025 1,976 
Commercial and industrial1,120 199 162 331 321 
Residential real estate5,624 6,174 5,650 5,969 5,958 
Other consumer2,391 2,820 2,731 2,457 3,377 
Total non-performing loans$30,098 $22,758 $22,437 $23,265 $21,498 
Delinquent loans 30 to 89 days$20,591 $3,136 $11,232 $14,148 $11,846 
Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)$6,679 $6,882 $6,556 $6,361 $10,047 
Performing7,645 7,516 7,619 7,530 6,065 
Total modifications to borrowers experiencing financial difficulty (2)
$14,324 $14,398 $14,175 $13,891 $16,112 
Allowance for loan credit losses$63,877 $61,791 $60,195 $56,824 $53,521 
Allowance for loan credit losses as a percent of total loans receivable (3)
0.63 %0.61 %0.60 %0.57 %0.55 %
Allowance for loan credit losses as a percent of total non-performing loans (3)
212.23 271.51 268.28 244.25 248.96 
Non-performing loans as a percent of total loans receivable0.30 0.23 0.22 0.23 0.22 
Non-performing assets as a percent of total assets0.22 0.17 0.17 0.18 0.17 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$18,640 $18,872 $20,513 $27,129 $29,249 
Non-performing PCD loans3,177 3,171 3,929 3,944 3,043 
Delinquent PCD and non-performing loans 30 to 89 days13,007 1,976 2,248 3,657 1,434 
PCD modifications to borrowers experiencing financial difficulty (2)
750 755 758 765 715 
Asset quality, excluding PCD loans (4)
Non-performing loans26,921 19,587 18,508 19,321 18,455 
Delinquent loans 30 to 89 days (excludes non-performing loans)
7,584 1,160 8,984 10,491 10,412 
Modifications to borrowers experiencing financial difficulty(2)
13,574 13,643 13,417 13,126 15,397 
Allowance for loan credit losses as a percent of total non-performing loans (3)
237.28 %315.47 %325.24 %294.10 %290.01 %
Non-performing loans as a percent of total loans receivable
0.27 0.19 0.18 0.19 0.19 
Non-performing assets as a percent of total assets0.20 0.14 0.14 0.15 0.15 
(1)At September 30, 2023, non-performing loans and 30 to 89 days delinquent loans included the remaining exposure of $8.8 million on the commercial real estate relationship that was charged-off during the quarter ended September 30, 2023.
(2)For periods in 2023, 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. For periods in 2022, the balances only include 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 $8.8 million, $9.8 million, $10.5 million, $11.4 million and $13.6 million at September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, respectively.
(4)All balances and ratios exclude PCD loans.











16


(continued)

NET LOAN (CHARGE-OFFS) RECOVERIESFor the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Net loan (charge-offs) recoveries:
Loan charge-offs$(8,379)$(206)$(10)$(138)$(5)
Recoveries on loans108 83 57 143 257 
Net loan (charge-offs) recoveries$(8,271)

$(123)$47 $5 $252 
Net loan (charge-offs) recoveries to average total loans (annualized)0.33 %— %NM*NM*NM*
Net loan (charge-offs) recoveries detail:
Commercial$(8,332)$(117)$— $(46)$117 
Residential real estate17 9 8 9 44 
Other consumer44 (15)39 42 91 
Net loan (charge-offs) recoveries$(8,271)$(123)$47 $5 $252 
* Not meaningful as amounts are net loan recoveries.



17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
September 30,June 30,September 30,
202320232022
(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$470,825 $6,440 5.43 %$308,238 $4,283 5.57 %$65,648 $336 2.03 %
Securities (2)
1,873,450 18,039 3.82 1,931,032 16,709 3.47 1,748,687 10,022 2.27 
Loans receivable, net (3)
Commercial6,923,743 103,069 5.91 6,912,698 99,350 5.76 6,509,515 74,309 4.53 
Residential real estate2,918,612 26,765 3.67 2,895,629 25,936 3.58 2,791,067 22,818 3.27 
Other consumer252,126 4,097 6.45 255,785 3,818 5.99 256,638 3,014 4.66 
Allowance for loan credit losses, net of deferred loan costs and fees(53,959)— — (53,327)— — (44,773)— — 
Loans receivable, net10,040,522 133,931 5.30 10,010,785 129,104 5.17 9,512,447 100,141 4.18 
Total interest-earning assets12,384,797 158,410 5.08 12,250,055 150,096 4.91 11,326,782 110,499 3.88 
Non-interest-earning assets1,252,416 1,217,666 1,191,173 
Total assets$13,637,213 $13,467,721 $12,517,955 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,692,500 14,938 1.61 %$3,718,289 11,964 1.29 %$3,873,968 2,671 0.27 %
Money market832,729 5,698 2.71 694,311 3,678 2.12 793,230 721 0.36 
Savings1,391,811 3,311 0.94 1,248,312 389 0.12 1,603,147 187 0.05 
Time deposits2,867,921 29,340 4.06 2,458,872 21,903 3.57 1,467,297 5,659 1.53 
Total8,784,961 53,287 2.41 8,119,784 37,934 1.87 7,737,642 9,238 0.47 
FHLB Advances701,343 8,707 4.93 1,246,914 15,406 4.96 352,392 2,208 2.49 
Securities sold under agreements to repurchase76,620 261 1.35 71,752 192 1.07 96,147 35 0.14 
Other borrowings (4)
317,210 5,159 6.45 284,460 4,455 6.28 194,755 3,053 6.22 
Total borrowings1,095,173 14,127 5.12 1,603,126 20,053 5.02 643,294 5,296 3.27 
Total interest-bearing liabilities9,880,134 67,414 2.71 9,722,910 57,987 2.39 8,380,936 14,534 0.69 
Non-interest-bearing deposits1,841,198 1,873,226 2,328,700 
Non-interest-bearing liabilities(4)
272,982 244,892 266,564 
Total liabilities11,994,314 11,841,028 10,976,200 
Stockholders’ equity1,642,899 1,626,693 1,541,755 
Total liabilities and equity$13,637,213 $13,467,721 $12,517,955 
Net interest income$90,996 $92,109 $95,965 
Net interest rate spread (5)
2.37 %2.52 %3.19 %
Net interest margin (6)
2.91 %3.02 %3.36 %
Total cost of deposits (including non-interest-bearing deposits)1.99 %1.52 %0.36 %





18

(continued)
For the Nine Months Ended September 30,
 20232022
(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$304,184 $11,661 5.13 %$73,886 $472 0.85 %
Securities (2)
1,919,660 51,124 3.56 1,801,978 27,086 2.01 
Loans receivable, net (3)
Commercial6,892,456 295,199 5.73 6,275,836 198,054 4.22 
Residential real estate2,895,601 77,862 3.59 2,685,080 66,899 3.32 
Other consumer257,063 11,694 6.08 254,891 8,387 4.40 
Allowance for loan credit losses, net of deferred loan costs and fees(52,626)— — (42,987)— — 
Loans receivable, net9,992,494 384,755 5.15 9,172,820 273,340 3.98 
Total interest-earning assets12,216,338 447,540 4.90 11,048,684 300,898 3.64 
Non-interest-earning assets1,234,942 1,191,358 
Total assets$13,451,280 $12,240,042 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,757,417 33,171 1.18 %$4,088,759 6,433 0.21 %
Money market744,689 11,136 2.00 773,666 1,317 0.23 
Savings1,336,497 4,034 0.40 1,617,354 473 0.04 
Time deposits2,388,299 64,210 3.59 1,060,027 9,373 1.18 
Total8,226,902 112,551 1.83 7,539,806 17,596 0.31 
FHLB Advances1,055,106 38,530 4.88 308,043 3,890 1.69 
Securities sold under agreements to repurchase73,441 544 0.99 105,821 117 0.15 
Other borrowings (4)
302,649 14,008 6.19 205,796 8,306 5.40 
Total borrowings1,431,196 53,082 4.96 619,660 12,313 2.66 
Total interest-bearing liabilities9,658,098 165,633 2.29 8,159,466 29,909 0.49 
Non-interest-bearing deposits1,913,624 2,352,606 
Non-interest-bearing liabilities (4)
253,014 193,147 
Total liabilities11,824,736 10,705,219 
Stockholders’ equity1,626,544 1,534,823 
Total liabilities and equity$13,451,280 $12,240,042 
Net interest income$281,907 $270,989 
Net interest rate spread (5)
2.61 %3.15 %
Net interest margin (6)
3.09 %3.28 %
Total cost of deposits (including non-interest-bearing deposits)1.48 %0.24 %
(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 2023 periods, the average balances of derivative cash collateral have been reclassified from non-interest bearing liabilities to other borrowings.
(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)
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Selected Financial Condition Data:
Total assets$13,498,183 $13,538,903 $13,555,175 $13,103,896 $12,683,453 
Debt securities available-for-sale, at estimated fair value
453,208 452,016 452,195 457,648 470,300 
Debt securities held-to-maturity, net of allowance for securities credit losses1,189,339 1,222,507 1,245,424 1,221,138 1,027,712 
Equity investments97,908 96,452 101,007 102,037 81,722 
Restricted equity investments, at cost82,484 105,305 115,750 109,278 77,556 
Loans receivable, net of allowance for loan credit losses10,068,156 10,030,106 9,986,949 9,868,718 9,672,488 
Deposits10,533,929 10,158,337 9,993,095 9,675,206 9,959,469 
Federal Home Loan Bank advances606,056 1,091,666 1,346,566 1,211,166 514,200 
Securities sold under agreements to repurchase and other borrowings279,164 270,377 266,601 264,500 291,203 
Total stockholders’ equity1,637,604 1,626,283 1,610,371 1,585,464 1,540,216 

For the Three Months Ended,
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Selected Operating Data:
Interest income$158,410 $150,096 $139,034 $130,277 $110,499 
Interest expense67,414 57,987 40,232 23,789 14,534 
Net interest income90,996 92,109 98,802 106,488 95,965 
Provision for credit losses10,283 1,229 3,013 3,647 1,016 
Net interest income after provision for credit losses80,713 90,880 95,789 102,841 94,949 
Other income (excluding activity related to debt and equity investments)9,310 9,487 9,571 10,364 11,788 
Net gain (loss) on equity investments1,452 (559)(2,193)17,187 3,362 
Net loss on sale of investments— — (5,305)— — 
Operating expenses (excluding merger related and branch consolidation expense (benefit), net)64,484 62,930 61,217 59,341 59,045 
Branch consolidation expense (benefit), net— — 70 111 (346)
Merger related expenses— — 22 276 298 
Income before provision for income taxes26,991 36,878 36,553 70,664 51,102 
Provision for income taxes6,459 8,996 8,654 17,353 12,298 
Net income20,532 27,882 27,899 53,311 38,804 
Net (loss) income attributable to non-controlling interest(135)85 16 39 193 
Net income attributable to OceanFirst Financial Corp.$20,667 $27,797 $27,883 $53,272 $38,611 
Net income available to common stockholders$19,663 $26,793 $26,879 $52,268 $37,607 
Diluted earnings per share$0.33 $0.45 $0.46 $0.89 $0.64 
Net accretion/amortization of purchase accounting adjustments included in net interest income$1,745 $1,152 $1,237 $2,278 $2,004 
20

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232022202320222022
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
0.57 %0.80 %0.82 %1.62 %1.19 %
Return on average tangible assets (3) (4)
0.59 0.83 0.86 1.68 1.24 
Return on average stockholders’ equity (3)
4.75 6.61 6.77 13.25 9.68 
Return on average tangible stockholders’ equity (3) (4)
6.93 9.70 10.00 19.85 14.62 
Return on average tangible common equity (3) (4)
7.29 10.21 10.53 20.97 15.47 
Stockholders’ equity to total assets12.13 12.01 11.88 12.10 12.14 
Tangible stockholders’ equity to tangible assets (4)
8.64 8.51 8.37 8.47 8.38 
Tangible common equity to tangible assets (4)
8.21 8.09 7.95 8.03 7.92 
Net interest rate spread2.37 2.52 2.94 3.37 3.19 
Net interest margin2.91 3.02 3.34 3.64 3.36 
Operating expenses to average assets 1.88 1.87 1.88 1.85 1.87 
Efficiency ratio (5)
63.37 62.28 60.78 44.56 53.10 
Loan-to-deposit ratio96.10 99.30 100.50 102.50 97.60 


For the Nine Months Ended September 30,
20232022
Performance Ratios (Annualized):
Return on average assets (3)
0.73 %0.99 %
Return on average tangible assets (3) (4)
0.76 1.03 
Return on average stockholders’ equity (3)
6.03 7.87 
Return on average tangible stockholders’ equity (3) (4)
8.85 11.91 
Return on average tangible common equity (3) (4)
9.31 12.60 
Net interest rate spread2.61 3.15 
Net interest margin3.09 3.28 
Operating expenses to average assets1.88 1.91 
Efficiency ratio (5)
62.15 57.90 


21

(continued)
At or For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$336,913 $339,890 $333,436 $324,066 $273,815 
Nest Egg AUA/M385,317 397,927 400,227 403,538 402,256 
Total AUA/M722,230 737,817 733,663 727,604 676,071 
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 period27.56 27.37 27.07 26.81 26.04 
Tangible book value per common share at end of period (4)
17.93 17.72 17.42 17.08 16.30 
Common shares outstanding at end of period59,421,49859,420,85959,486,08659,144,128 59,138,507
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:38 38 38 38 38 
Quarterly Average Balances
Total securities$1,873,450 $1,931,032 $1,955,399 $1,764,764 $1,748,687 
Loans receivable, net10,040,522 10,010,785 9,924,905 9,771,104 9,512,447 
Total interest-earning assets12,384,797 12,250,055 12,010,044 11,605,891 11,326,782 
Total goodwill and core deposit intangible517,282 518,265 519,282 520,400 521,566 
Total assets13,637,213 13,467,721 13,244,593 12,834,411 12,517,955 
Time deposits2,867,921 2,458,872 1,826,662 1,486,410 1,467,297 
Total deposits (including non-interest-bearing deposits)10,626,159 9,993,010 9,793,256 9,975,509 10,066,342 
Total borrowings1,095,173 1,603,126 1,600,845 915,565 643,294 
Total interest-bearing liabilities9,880,134 9,722,910 9,365,594 8,669,190 8,380,936 
Non-interest bearing deposits1,841,198 1,873,226 2,028,507 2,221,884 2,328,700 
Stockholders' equity1,642,899 1,626,693 1,609,677 1,564,856 1,541,755 
Tangible stockholders’ equity (4)
1,125,617 1,108,428 1,090,395 1,044,456 1,020,189 
Quarterly Yields and Costs
Total securities3.82 %3.47 %3.40 %2.83 %2.27 %
Loans receivable, net5.30 5.17 4.96 4.76 4.18 
Total interest-earning assets5.08 4.91 4.68 4.46 3.88 
Time deposits4.06 3.57 2.88 1.95 1.53 
Total cost of deposits (including non-interest-bearing deposits)1.99 1.52 0.88 0.53 0.36 
Total borrowed funds5.12 5.02 4.79 4.49 3.27 
Total interest-bearing liabilities2.71 2.39 1.74 1.09 0.69 
Net interest spread2.37 2.52 2.94 3.37 3.19 
Net interest margin2.91 3.02 3.34 3.64 3.36 
(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Ratios for each period are based on net income available to common stockholders.
(4)    Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.



22


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

NON-GAAP RECONCILIATION
For the Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Core Earnings:
Net income available to common stockholders (GAAP)
$19,663 $26,793 $26,879 $52,268 $37,607 
(Less) add non-recurring and non-core items:
Net (gain) loss on equity investments(1)
(1,452)559 2,193 (17,187)(3,362)
Net loss on sale of investments(1)
— — 5,305 — — 
Merger related expenses— — 22 276 298 
Branch consolidation expense (benefit), net— — 70 111 (346)
Income tax expense (benefit) on items351 (162)(1,797)4,060 824 
Core earnings (Non-GAAP)
$18,562 $27,190 $32,672 $39,528 $35,021 
Income tax expense$6,459 $8,996 $8,654 $17,353 $12,298 
Provision for credit losses10,283 1,229 3,013 3,647 1,016 
Less: income tax expense (benefit) on non-core items351 (162)(1,797)4,060 824 
Core earnings PTPP (Non-GAAP)
$34,953 $37,577 $46,136 $56,468 $47,511 
Core earnings diluted earnings per share$0.32 $0.46 $0.55 $0.67 $0.60 
Core earnings PTPP diluted earnings per share$0.59 $0.64 $0.78 $0.96 $0.81 
Core Ratios (Annualized):
Return on average assets0.54 %0.81 %1.00 %1.22 %1.11 %
Return on average tangible stockholders’ equity6.54 9.84 12.15 15.01 13.62 
Return on average tangible common equity6.88 10.36 12.80 15.86 14.40 
Efficiency ratio64.29 61.94 56.49 50.78 54.80 
(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.
23


For the Nine Months Ended September 30,
20232022
Core Earnings:
Net income available to common stockholders (GAAP)
$73,335 $90,319 
Add (less) non-recurring and non-core items:
Net loss on equity investments(1)
1,300 7,502 
Net loss on sale of investments(1)
5,305 — 
Merger related expenses22 2,459 
Branch consolidation expense, net70 602 
Income tax benefit on items(1,608)(2,449)
Core earnings (Non-GAAP)
$78,424 $98,433 
Income tax expense$24,109 $29,212 
Credit loss provision 14,525 4,121 
Less: income tax benefit on non-core items(1,608)(2,449)
Core earnings PTPP (Non-GAAP)
$118,666 $134,215 
Core diluted earnings per share$1.33 $1.67 
Core earnings PTPP diluted earnings per share$2.01 $2.28 
Core Ratios (Annualized):
Return on average assets0.78 %1.08 %
Return on average tangible stockholders’ equity9.46 12.98 
Return on average tangible common equity9.96 13.73 
Efficiency ratio60.79 55.51 
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.


24

(continued)

September 30,June 30,March 31,December 31,September 30,
20232023202320222022
Tangible Equity:
Total stockholders' equity$1,637,604 $1,626,283 $1,610,371 $1,585,464 $1,540,216 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible10,489 11,476 12,470 13,497 14,656 
Tangible stockholders' equity1,120,969 1,108,661 1,091,755 1,065,821 1,019,414 
Less:
Preferred stock55,527 55,527 55,527 55,527 55,527 
Tangible common equity$1,065,442 $1,053,134 $1,036,228 $1,010,294 $963,887 
Tangible Assets:
Total assets$13,498,183 $13,538,903 $13,555,175 $13,103,896 $12,683,453 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible10,489 11,476 12,470 13,497 14,656 
Tangible assets$12,981,548 $13,021,281 $13,036,559 $12,584,253 $12,162,651 
Tangible stockholders' equity to tangible assets8.64 %8.51 %8.37 %8.47 %8.38 %
Tangible common equity to tangible assets8.21 %8.09 %7.95 %8.03 %7.92 %


25
. . . 1 The 3Q 2023 Earnings Release Supplement should be read in conjunction with the Earnings Release furnished as Exhibit 99.1 to Form 8-K filed with the SEC on October 19, 2023. Exhibit 99.2 OceanFirst Financial Corp. 3Q 2023 Earnings Release Supplement1 October 2023

 
. . .Legal Disclaimer 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 Bank’s lending area, real estate market values in the Bank’s lending area, potential goodwill impairment, future 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, changes in liquidity, including the size and composition of the Company’s deposit portfolio, including the percentage of uninsured deposits in the portfolio, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of the COVID-19 pandemic or any other pandemic 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, 2022, 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. NON-GAAP FINANCIAL INFORMATION. This presentation contains certain non-GAAP (generally accepted accounting principles) measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See reconciliations of certain non-GAAP measures included in the Company’s Earnings Release furnished as Exhibit 99.1 to Form 8-K as filed with the SEC on October 19, 2023. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. These estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. 2

 
. . .Q3-23 Financial Highlights 3 (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. Financial Highlights $0.32 Core Diluted EPS 1 $91 million Net Interest Income 0.54% Core ROAA 1 6.88% Core ROTCE 1 $0.59 Core PTPP Diluted EPS 1 10.4% CET1 Ratio  Net deposit growth of $376 million and prudent loan growth, resulted in a loan-to-deposit ratio of 96%. Net deposit growth funded a reduction in brokered time deposits of $426 million.  Asset quality metrics remain strong. Criticized and classified loans as a percent of total loans were 1.30% and non-performing loans as a percent of total loans were 0.20%.  CET1 remained above “well capitalized” levels at 10.4% as of September 30, 2023.

 
. . . I N V E S T O R P R E S E N T A T I O N 4 Quarterly Earnings Update

 
. . .Loan Portfolio Trends 5 Moderated Loan Growth in the Portfolio ($’millions)  Loan growth has moderated prudently, with the expectation of low single-digit growth for the remainder of the year.  Improving loan yields. 5,008 5,172 5,297 5,320 5,334 984 997 986 982 957 653 622 622 620 652 2,813 2,862 2,882 2,907 2,928 264 Q3-23 262 4.18% 4.76% Q3-22 9,918 Q4-22 252 4.96% 9,719 253 Q1-23 5.17% 255 5.30% Q2-23 10,040 10,084 10,124 Average Loan Yield C&I Home Equity & Consumer Residential CRE Owner Occupied CRE Investor Owned

 
. . .Credit Quality Historically Top Quartile and Well Positioned  Underlying collateral is diversified: The underlying collateral for the CRE Investor Owned (“Investor”) portfolio is highly diversified and focused in low risk collateral types.  Maturity wall is modest and has a minimal impact: Our maturity wall, totaling $415 million (or 4% of total loans), is set to mature in 2023 and 2024 with weighted average rates of 6.92% and 5.80%, for each respective cohort.  A repricing analysis(2) was performed on the vast majority of the CRE Investor and Construction portfolio. Results indicated the portfolio continues to service debt without unusual stress.  The weighted average DSCR of loans subject to the stress test is 1.32.  Greater than 90% of the CRE Investor portfolio is organically originated or acquired through whole bank acquisition.  Refer to the Appendices for additional disclosures on the Office portfolio. 6 CRE Investor Owner Portfolio by Geography Notes: All data presented represents CRE Investor balances, excluding purchase accounting marks and Construction as of September 30, 2023, unless otherwise noted. (1) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other. (2) Repricing analysis as of Q1-23 included stressing portfolio with an increase to 7% interest rates while keeping unwritten rents constant. We are actively tracking CRE loan underlying cash flows and noted no material change from Q1-23. As such, we have deemed the results from the repricing analysis to be relevant for the current quarter. 21% 31%28% 8% 10% NY MA PA/DE MD/DC NJ 2% Other CRE Investor Owned - Collateral Details $'millions CRE: Investor Owned % of Total WA LTV WA DSCR Retail 1,085 23.1% 56.3 1.61 Office 1,090 23.2% 56.4 1.80 Multi-Family 951 20.3% 64.5 1.62 Industrial / Warehouse 738 15.7% 56.6 2.27 Hospitality 135 2.9% 66.2 1.23 Other 1 693 14.8% 49.5 1.69 CRE: Investor Owned 4,692 100.0% 57.3 1.76 Construction 642 CRE IO and Construction Total 5,334 Maturity Wall Detail Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans 2023 58 6.92 64.82 1.70 0.57% 2024 357 5.80 68.20 1.92 3.53% Total 415 5.95 67.73 1.89 4.10% Note: Weighted Average DSCR calculations exclude credits for which DSCR is not calculated.

 
. . . Strong asset quality trends driven by prudent loan growth and credit decisioning. Quarterly Credit Trends (1 of 2) 7 Non-Performing Loans and Assets ($’000)1, 2 Special Mention and Substandard Loans ($’000) Note: At September 30, 2023, of the Special Mention loans and Substandard loans represented above, 95% and 72% were current on payments, respectively. Note #2: Peer data is on a one quarter lag. 0.15% 0.19% Q3-22 0.15% 0.19% Q4-22 0.14% 0.18% Q1-23 0.14% 0.19% Q2-23 0.27% Q3-23 Non-performing loans to total loans Non-performing assets to total assets Non-performing loans 18,455 19,321 18,508 26,921 (1) PCD loans are not included in these metrics. Refer to Asset Quality section in the Earnings Release for additional information. (2) In Q3-23 the Bank charged-off $8 million on a single commercial real estate credit relationship. The remaining exposure of $9 million is included in the non-performing loan balance. 19,587 0.20% 97,353 50,776 86,765 88,152 86,596 54,330 48,214 23,980 30,859 44,940 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 1.30% 2.58% 1.56% 2.46% 1.00% 2.39% 1.10% 2.53% 1.18% Peer Average Criticized Loans / Total Loans OCFC Criticized Loans / Total Loans Special Mention Substandard

 
. . .Quarterly Credit Trends (2 of 2) 8 Loan Allowance for Credit Losses (ACL) Plus PCD & General Credit Marks / Total Loans NCOs / (Recoveries) and Provision for Credit Loss Expense ($’000) 0.14% 0.55% Q3-22 0.12% 0.57% Q4-22 0.10% 0.60% Q1-23 0.10% 0.61% Q2-23 0.09% 0.63% Q3-23 0.69% 0.69% 0.70% 0.71% 0.72% PCD & General Credit Marks ACL 10,283 (252) (47) 123 8,271 1,016 Q3-22 3,647 Q4-22 3,013 Q1-23 1,229 Q2-23 Q3-23 (5) Provision Expense Net Charge-offs (Recoveries) Driven by a charge-off on a single commercial real estate credit relationship announced on September 14, 2023. NCOs to Avg Loans YTD Q3-23 totaled 0.11%.

 
. . . COVID-19 Pandemic Track Record of Strong Credit Performance 9  From 2006 to 2022, inclusive of the Global Financial Crisis, Hurricane Sandy, and the COVID-19 Pandemic, OCFC’s CRE NCO to average CRE loans totaled 6 bps per year compared to 81 bps for all commercial banks between $10 - $50 billion in assets.  Peak CRE net charge-offs for OCFC totaled 47 bps in 2020, related to proactively de-risking our balance sheet. Peak CRE charge- offs for commercial banks between $10-$50 billion in assets were 455 bps in 2010. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1-23 Q2-23 OCFC CRE NCO / Avg Assets OCFC NCO / Avg Assets Commercial Banks ($10-50 bn) CRE NCO / Avg Assets Commercial Banks ($10-50 bn) NCO / Avg Assets Global Financial Crisis Cumulative CRE charge-offs for OCFC between 2006 and Q3-23 were minimal, totaling $35 million. Hurricane Sandy Source: S&P Global. Note: Commercial bank reporting is on a one quarter lag.

 
. . .Deposit Trends 10 (1) Deposit beta is calculated as the increase in rate paid on total deposits per quarter divided by the incremental increase in the fed funds rate since January 1, 2022.  Deposits (excl. brokered CDs) increased by 9% from the linked quarter.  High yield savings grew by $328 million from the previous quarter, driving an improvement in the quality of our deposit base as these will reprice should rates moderate next year.  Decline in Q3-23 time deposits is driven by a decrease in brokered CDs of ~$426 million.  We maintain prudent price discipline resulting in an overall deposit beta of 35%. Excluding brokered CDs, our deposit beta totaled 30%. We expect deposit betas to continue to rise as the competitive landscape for deposits increases. Shift in Deposit Mix to Drive Retention ($’millions) 6.7% 0.4% Q3-22 9.8% 0.6% Q4-22 20.0% 1.1% Q1-23 28.8% 1.6% Q2-23 34.9% 2.0% Q3-23 Deposit Beta (1) Cost of Deposits (Spot) 1,404 1,542 2,387 2,766 2,654749 714 616 770 8601,570 1,488 1,309 1,230 1,484 3,910 3,830 3,697 3,538 3,709 2,326 2,101 1,984 1,854 1,827 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 9,959 9,675 9,993 10,158 10,534 Non Int. Bearing Int. Bearing Checking Savings Money Market Time Deposits Deposit Beta and Cost Trend Cost of Deposits Type of Account Qtr. Avg. Sept 30 Spot Int. Bearing Checking 1.61% 1.64% Money Market 2.71% 2.83% Savings 0.94% 1.36% Time Deposits 4.06% 4.06% Total (incl. non-int bearing) 1.99% 2.02%

 
. . .~84% of Deposits Are Insured/Collateralized, Long Tenured, and Granular 11  OCFC’s deposit composition is extremely granular with 98% of all deposit accounts by number less than $250K.  OCFC customers have long tenured relationships with an average age of 9 years. The median age of a deposit relationship is 7 years.  Average non-government deposit account is well below the FDIC insurance limit.  Government deposits in New Jersey are protected by the State under the NJ Government Unit Deposit Protection Act and fully collateralized by OCFC. Note: Refer to Appendices for detailed adjusted uninsured deposit bridge as of 9/30/23. Q1-23 and prior periods are reported under historical methodology. Note #2: All data presented is as of September 30, 2023, unless otherwise noted. (1)The State of NJ requires collateralization on municipal deposits and administers a backstop to protect these deposits. Deposit Accounts by Size Length of Customer Relationships 77.5% 78.7% 81.4% 84.9% 84.4% 22.5% 21.3% 18.6% 15.1% 15.6% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Adj Uninsured Deposits Adj Insured Deposits 9,959 9,675 9,993 Total Deposits ($’millions) 98% < $250K 2% > $250K 244.2K Accounts 33% 20% 17% 20% 10% < 5 years 5-10 Years 10-15 Years 15-25 Years > 25 Years 153.7K Customers 10,534 Note #3: The reduction in adjusted uninsured deposits percentage of total deposits in Q2-23 onward is due to a change in methodology to improve accuracy of estimated adjusted uninsured deposits. 10,158 Customer Segment Segment Average Balance Personal $22K Business $110K Government1 $966K

 
. . .Net Interest Income and Net Interest Margin Trends 12 (1) Core NIM excludes purchase accounting and prepayment fee income. Refer to the Earnings Release for additional information. Core NIM1 vs NIM NIM Bridge 0.01 Q2-23 NIM -0.08 Ordinary course rate impacts Quarter-specific impacts (PA accretion for payoffs) -0.04 Excess liquidity Q3-23 NIM 3.02% 2.91% 3.36% 3.28% Q3-22 3.64% 3.54% Q4-22 3.34% 3.30% Q1-23 3.02% 2.97% Q2-23 2.91% 2.85% Q3-23 NIM Core NIM Net Interest Income ($’000) 95,965 Q3-22 106,488 Q4-22 98,802 Q1-23 92,109 Q2-23 90,996 Q3-23 Net Interest Income Headwinds  Competitive market environment as peers compete on rate for quality credit.  Remaining disciplined on deposit pricing and managing funding costs.

 
. . . Core Efficiency Ratio1 Expense Discipline and Focused Investment 13 Core Non-Interest Expense1 ($’000) 42,331 45,711 45,981 47,610 49,910 13,937 11,111 13,108 12,923 11,873 2,397 2,777 Q3-22 2,1282,519 59,045 Q1-23Q4-22 Q2-23 2,701 Q3-23 59,341 61,217 62,930 64,484 Other Core Non-Int ExpTrident Technology Expense 1.88% 64.29% 1.87% 54.80% Q3-22 50.78% Q4-22 1.87% 56.49% Q1-23 61.94% Q2-23 Q3-23 1.91% 1.88% Core Efficiency Ratio Core Non-Interest Expense to Average Assets (Annualized) (1For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information.  Q3-23 core operating expenses increased $1.6 million from the prior linked quarter and totaled $64.5 million, of which $2.4 million were non-recurring staff costs.  Non-recurring staff costs comprised a combination of severance and other compensation and benefits reductions related to our performance improvement initiative.  We are implementing a series of operating leverage strategies that are expected to reduce total operating expenses to $58-$59 million run-rate beginning in Q4-23 and continuing into 2024.

 
. . .Generating Consistent Returns 14 Book Value and Tangible Book Value per Common Share ($)1 Core ROAA1, ROTE1, and ROTCE1 • Tangible book value per common share increased by $1.63 (or 10%) compared to the same quarter last year. • Capital ratios remain above "well-capitalized" levels even if the Company were to include the marks on its AFS/HTM portfolio in CET1. Capital Management ($’millions) 16.30 17.08 17.42 17.72 17.93 26.04 26.81 27.07 27.37 27.56 Q3-23Q3-22 Q4-22 Q1-23 Q2-23 Tangible Book Value per Common ShareBook Value per Share Q3-22 15.86% 13.62% 15.01% 14.40% 1.11% 1.22% Q4-22 10.36% 12.15% 12.80% 1.00% 0.54% Q1-23 9.84% 0.81% Q2-23 Q3-23 6.54% 6.88% Core ROTE Core ROTCE Core ROAA 12 12 12 12 12 00 8.38% Q4-22 8.47% 0 Q3-22 0 8.37% 8.64% Q1-23 8.51% 0 Q2-23 Q3-23 Tangible Stockholders’ Equity to Tangible Assets1 Share Repurchases Cash Dividend (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information.

 
. . .Leading TBV Growth Supported by Prudent Liquidity Management 15 Tangible Book Value per Share Growth (Q2-22 to Q2-23)(1) (1) Peers include those companies defined in definitive proxy statement filed April 21, 2023. Excludes Investors Bancorp due to the sale to Citizens Financial Group. 11.0 -5% 0% 5% 10% 15 Peer 1 Peer 2 OCFC Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21

 
. . .Management 2023 Outlook – Update 16 Loans Deposits Operating Expenses Net Interest Margin Capital • Continued focus on credit risk management, anchored by our diversified CRE portfolio that has performed well in market downturns • Maintain loan-to-deposit ratio ~100% for remainder of the year • Accounts for uncertainty in deposit flows. Our expectation is moderate outflow of non-maturity deposits, offset by an increase in promo CDs and high yield savings accounts Low single-digit growth for full year Low single-digit growth for full year Q4-23 expected to stabilize in the $58 to $59 million range Similar decline as Q3, then stable Robust CET1 ratio (~10%) Guidance Key Assumptions / Commentary • The current quarter included $2.4 million of non-recurring compensation and benefits related expenses consisting of severance and other program costs relating to our performance improvement initiative • This does not include the potential one-time proposed FDIC special assessment. The final ruling is pending • We are working on incremental opportunities to reduce expenses modestly in 2024

 
. . . I N V E S T O R P R E S E N T A T I O N 17 Appendix

 
. . .CBD Office Concentration Exposure Is Moderate Office Portfolio  Central business district loans comprised 1% of total assets and have a weighted average LTV of 53.0% and weighted average DSCR of 1.85.  Criticized and classified office loans totaled 2% of total office loans. 18 CBD Office Portfolio by Geography 13% 36% 32% 19% Philadelphia New York City Newark Boston Central Business District (CBD) - Office $'millions Book Balance % of Total WA LTV WA DSCR Credit Tenant 44 36.1% 61.7 2.17 Office 42 34.1% 56.2 1.97 Life Sciences & Medical 36 29.8% 38.9 1.31 CBD - Office 122 11.2% 53.0 1.85 % of Total Loans 1.2% CRE Investor Owned: Office $'millions Book Balance % of Total WA LTV WA DSCR Office 530 48.6% 51.9 1.72 Life Sciences & Medical 330 30.3% 57.8 1.71 Credit Tenant 230 21.1% 64.6 2.07 Total Office 1,090 100.0% 56.4 1.79 % of Total Loans 10.8%

 
. . .Liquidity Sources are Robust and Diverse 19 Liquidity remains robust:  Adjusted uninsured deposits accounted for 16% of total deposits.  Cash held on balance sheet totaled $304 million(1).  OCFC had no outstanding borrowings from the Federal Reserve Discount Window or Bank Term Funding Program, strong sources of backstop liquidity.  As the banking environment continues to stabilize, we will evaluate our liquidity position and needs through Q4-23, with potential reductions in excess liquidity to be redeployed into new loans. 829 1,650 2,534 816 145 Liquidity Sources Adjusted Uninsured Deposits 4,324 FRB Discount Window Capacity FedFunds and Repo Lines Available FHLB Remaining Capacity Cash and Unpledged Securities Adjusted Uninsured Deposits Note: All data presented is as of September 30, 2023. (1) Excludes estimated cash used in daily banking operations. (2) Refer to adjusted uninsured deposits bridge in the Appendices. 262% Numbers in the above table are in $’millions. (2)

 
. . .High Quality and Low Risk Investment Portfolio 20  Unrealized gain on AFS debt securities of $2 million in Q3-23 ($8 million in the YTD period).  Portfolio remains high quality and investment grade with 83% rated AAA or AA.  Total duration on the investment portfolio totaled 4 years. Investment Portfolio Composition 4% 55%13% 17% 4% 6% US Government & Agency Agency MBS 1% MBS State and Municipal Asset-Backed Corporate Debt Other Total: $1.7B 1,749 1,765 1,955 1,931 1,873 2.27% Q3-22 2.83% Q4-22 3.40% Q1-23 3.47% Q2-23 3.82% Q3-23 Average Investments ($ millions) Yield on Investments (%) Portfolio Trends and Yield (1) Note: All data presented is as of September 30, 2023, unless otherwise noted. (1) Average investments includes restricted equity investments comprised primarily of FHLB and FRB stock. Rate Exposure: • 22% floating • 78% fixed Investment Portfolio Composition AFS HTM Equities $'millions Fair Value Duration (Yrs) Amortized Cost Duration (Yrs) Fair Value Duration (Yrs) Asset-Backed 290 (0) - - - US Gov & Agency 64 3 - - - Agency MBS 90 6 870 4 - - Corporate Debt 9 2 69 1 - - State and Municipal - - 229 5 - - MBS - - 21 2 - - Other - - - 98 5 Total 453 1,189 98

 
. . .Customer Base Values Operational Support Deposit base is highly operational and values individualized service and support. OCFC customers initiated over 43 million total transactions in 2022 for over $100 billion, turning over our September 30, 2023 deposit balance ~10 times per year. 13.6% 30.3% 52.0% 0.2% 2.2% 1.7% 58.1% 15.8% 24.6% 0.5% 1.0%43 million transactions >$100 billion Volume Dollars Wires ACH TransactionsBill Pay eWallet Debit Card (Visa) Checks Cleared Legend 1 (1) Legend applies to both volume and dollar charts.

 
. . .Adjusted Uninsured Deposit Bridge Detail 22 Note #1: Uninsured deposits are reported at the consolidated Bank level per the Call Report. (1) The State of NJ requires collateralization on municipal deposits and administers a backstop to protect these deposits. (2) Gross exclusions relate to intercompany deposits. Adjusted Uninsured Deposit Bridge $'millions Schedule/Line September 30, 2023 Estimated Uninsured Deposits RC-O Line M.2 5,271 Less: Collateralized Municipal Deposits1 (2,164) Less: Gross Exclusion Deposits2 (1,457) Estimated Adjusted Uninsured Deposits, net of exclusions 1,650 Total Deposits RC-O Line 1 12,057 Less: Gross Exclusion Deposits2 (1,457) Total Deposits, net of exclusions RC Line 13.a 10,600 % of Total Deposits, net of exclusions 15.6%

 
. . .Non-GAAP Reconciliations (1 of 2) (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. Non-GAAP Reconciliation For the Three Months Ended $'000 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Core Earnings: Net income available to common stockholders (GAAP) 19,663 26,793 26,879 52,268 37,607 Add (less) non-recurring and non-core items: Merger related expenses - - 22 276 298 Branch consolidation expense (benefit), net - - 70 111 (346) Net (gain) loss on equity investments (1) (1,452) 559 2,193 (17,187) (3,362) Net loss on sale of investments (1) - - 5,305 - - Income tax expense (benefit) on items 351 (162) (1,797) 4,060 824 Core earnings (Non-GAAP) 18,562 27,190 32,672 39,528 35,021 Income tax expense 6,459 8,996 8,654 17,353 12,298 Provision for credit losses 10,283 1,229 3,013 3,647 1,016 Less: income tax expense (benefit) on non-core items 351 (162) (1,797) 4,060 824 Core earnings PTPP (Non-GAAP) 34,953 37,577 46,136 56,468 47,511 Core earnings diluted earnings per share 0.32 0.46 0.55 0.67 0.60 Core earnings PTPP diluted earnings per share 0.59 0.64 0.78 0.96 0.81 Core Ratios (Annualized): Return on average assets 0.54% 0.81% 1.00% 1.22% 1.11% Return on average tangible stockholders' equity 6.54 9.84 12.15 15.01 13.62 Return on average tangible common equity 6.88 10.36 12.80 15.86 14.40 Efficiency ratio 64.29 61.94 56.49 50.78 54.80

 
. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Tangible Equity Total stockholders' equity 1,637,604 1,626,283 1,610,371 1,585,464 1,540,216 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 10,489 11,476 12,470 13,497 14,656 Tangible stockholders' equity 1,120,969 1,108,661 1,091,755 1,065,821 1,019,414 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,065,442 1,053,134 1,036,228 1,010,294 963,887 Tangible Assets Total Assets 13,498,183 13,538,903 13,555,175 13,103,896 12,683,453 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 10,489 11,476 12,470 13,497 14,656 Tangible assets 12,981,548 13,021,281 13,036,559 12,584,253 12,162,651

 
v3.23.3
Document and Entity Information
Oct. 19, 2023
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 19, 2023
Entity Registrant Name OCEANFIRST FINANCIAL CORP.
Entity Incorporation, State or Country Code DE
Entity File Number 001-11713
Entity Tax Identification Number 22-3412577
Entity Address, Address Line One 110 West Front Street
Entity Address, City or Town Red Bank
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07701
City Area Code 732
Local Phone Number 240-4500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001004702
Amendment Flag false
Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common stock, $0.01 par value per share
Trading Symbol OCFC
Security Exchange Name NASDAQ
Series A Preferred Stock  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
Trading Symbol OCFCP
Security Exchange Name NASDAQ
OceanFirst Financial (NASDAQ:OCFCP)
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