Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

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): January 18, 2024

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 class

Trading symbol

Name of each exchange in which registered

Common stock, $0.01 par value per share

OCFC

NASDAQ

Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)

OCFCP

NASDAQ

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 OPERATION AND FINANCIAL CONDITION

On January 18, 2024, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2023. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01REGULATION FD DISCLOSURE

The Company is scheduled to make presentations to current and prospective investors after January 18, 2024. 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 February 15, 2024 to stockholders of record on January 31, 2024.

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 February 16, 2024 to the stockholders of record at the close of business on February 5, 2024.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS


(d)	EXHIBITS

99.1	Press Release dated	January 18, 2024
99.2	Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after January 18, 2024.

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	January 18, 2024	/s/ Patrick S. Barrett
		Patrick S. Barrett
		Executive Vice President and Chief Financial Officer


						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 QUARTERLY AND ANNUAL

EARNINGS AND FINANCIAL RESULTS

RED BANK, NEW JERSEY, January 18, 2024 - OceanFirst Financial Corp. (NASDAQ:“OCFC”) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $26.7 million, or $0.46 per diluted share, for the quarter ended December 31, 2023, as compared to $52.3 million, or $0.89 per diluted share, for the corresponding prior year period, and $19.7 million, or $0.33 per diluted share, for the prior linked quarter. For the year ended December 31, 2023, the Company reported net income available to common stockholders of $100.0 million, or $1.70 per diluted share, as compared to $142.6 million, or $2.42 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):


	For the Three Months Ended,						For the Year Ended,
Performance Ratios (Quarterly Ratios Annualized):	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
Return on average assets	0.78	%	0.57	%	1.62	%	0.74	%	1.15	%
Return on average stockholders’ equity	6.41		4.75		13.25		6.13		9.24
Return on average tangible stockholders’ equity (a)	9.33		6.93		19.85		8.97		13.96
Return on average tangible common equity (a)	9.81		7.29		20.97		9.44		14.76
Efficiency ratio	60.38		63.37		44.56		61.71		53.80
Net interest margin	2.82		2.91		3.64		3.02		3.37

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

Core earnings1 for the quarter and year ended December 31, 2023 were $26.3 million and $104.7 million, respectively, or $0.45 and $1.78 per diluted share, a decrease from $39.5 million and $138.0 million, or $0.67 and $2.34 per diluted share, for the corresponding prior year periods, and an increase from $18.6 million, or $0.32 per diluted share, for the prior linked quarter.

Core earnings PTPP1 for the quarter and year ended December 31, 2023 were $37.9 million and $156.6 million, respectively, or $0.65 and $2.66 per diluted share, as compared to $56.5 million and $190.7 million, or $0.96 and $3.24 per diluted share, for the corresponding prior year periods, and $35.0 million, or $0.59 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:


	For the Three Months Ended,									For the Year Ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
Core Ratios1 (Quarterly Ratios Annualized):	2023			2023			2022			2023			2022
Return on average assets	0.77		%	0.54		%	1.22		%	0.78		%	1.11		%
Return on average tangible stockholders’ equity	9.20			6.54			15.01			9.39			13.50
Return on average tangible common equity	9.67			6.88			15.86			9.89			14.28
Efficiency ratio	60.02			64.29			50.78			60.61			54.21
Core diluted earnings per share	$	0.45		$	0.32		$	0.67		$	1.78		$	2.34
Core PTPP diluted earnings per share	0.65			0.59			0.96			2.66			3.24

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 (gain) loss on equity investments, net loss on sale of investments, Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (benefit). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

Key developments for the recent quarter are described below:

•Deposits: Total deposits remained stable decreasing less than 1% for the quarter to $10.4 billion, and grew 8% for the year. Additionally, the loan-to-deposit ratio was 97.70% at December 31, 2023.

•Capital: The Company’s estimated common equity tier 1 capital ratio increased to 10.88%, as compared to 9.93% in the prior year. Book value and tangible book value per share were $27.96 and $18.35, respectively, increasing $1.15 and $1.27 from the prior year.2

•Expenses: Non-interest expense decreased by 7% to $60.2 million from the prior linked quarter and remained relatively flat compared to the prior year period. Non-interest expense included a $1.7 million FDIC special assessment charge in the current quarter.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to report on our current quarter results; rounding out the year positively and executing on our strategies to improve operating expenses, diversify and strengthen our deposit base, and bolster our capital position during a tumultuous year for the industry.” Mr. Maher added, “As we turn to 2024, the Company is well positioned to create shareholder value and will remain focused on high quality growth, expense discipline, and prudent balance sheet management.”

The Company’s Board of Directors declared its 108th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on February 16, 2024 to common stockholders of record on February 5, 2024. The Company’s Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 15, 2024 to preferred stockholders of record on January 31, 2024.

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.

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 to and repricing of higher cost deposits that outpaced the increase in yields on interest-earning assets. Deposit betas increased modestly to 38%, from 35% in the prior linked quarter.3 Operating expenses included a special assessment charge of $1.7 million related to the Federal Deposit Insurance Corporation’s final rule to recover the loss to the Deposit Insurance Fund in 2023. Additionally, operating expenses reflect the net realization of the Company’s performance improvement initiatives and strategic investments made over the past year.

Net Interest Income and Margin

Quarter ended December 31, 2023 vs. December 31, 2022

Net interest income decreased to $87.8 million, from $106.5 million, primarily reflecting the net impact of the higher interest rate environment.

Net interest margin decreased to 2.82%, from 3.64%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.10% for the respective quarters, net interest margin decreased to 2.77%, from 3.54%. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest earning assets.

Average interest-earning assets increased by $743.2 million, primarily driven by increases of $326.8 million in interest-earning deposits and short-term investments and $318.1 million in total loans. The yield on average interest earning assets increased to 5.16%, from 4.46%.

The cost of average interest-bearing liabilities increased to 2.91%, from 1.09%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.22%, from 0.53%.

Year ended December 31, 2023 vs. December 31, 2022

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).

Net interest income decreased to $369.7 million, from $377.5 million, reflecting the net impact of the higher interest rate environment.

Net interest margin decreased to 3.02%, from 3.37%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.11% for the respective years, net interest margin decreased to 2.97%, from 3.26%.

Average interest-earning assets increased by $1.06 billion, primarily driven by increases in total loans of $693.2 million and interest-earning deposits and short-term investments of $254.6 million. The yield on average interest earning assets increased to 4.96%, from 3.85%.

The cost of average interest-bearing liabilities increased to 2.45%, from 0.65%, primarily due to higher cost of deposits and Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits (including non-interest bearing deposits) increased to 1.68%, from 0.31%.

Quarter ended December 31, 2023 vs. September 30, 2023

Net interest income decreased by $3.2 million, reflecting a decrease in net interest margin to 2.82%, from 2.91%, 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 0.05% and 0.06% for the respective quarters, net interest margin decreased to 2.77%, from 2.85%.

Average interest-earning assets decreased by $35.7 million, while the yield on average interest-earning assets increased to 5.16%, from 5.08%.

The total cost of average interest-bearing liabilities increased to 2.91%, from 2.71%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.22%, from 1.99%. Average interest-bearing liabilities increased $30.6 million, primarily due to an increase in total deposits, partially offset by a decrease in FHLB advances.

Provision for Credit Losses

Provision for credit losses for the quarter and year ended December 31, 2023, was $3.2 million and $17.7 million, respectively, as compared to $3.6 million and $7.8 million for the corresponding

prior year periods, and $10.3 million in the prior linked quarter. The current quarter provision was impacted by the net effect of credit rating migrations, declines in prepayment assumptions, and use of an external downside macro-economic forecast scenario.

Net loan charge-offs were $35,000 and $8.4 million for the quarter and year ended December 31, 2023, respectively. Net loan recoveries were $5,000 and $340,000 for the quarter and year ended December 31, 2022, respectively. Net loan charge-offs were $8.3 million in the prior linked quarter, which primarily related to a partial charge-off of $8.4 million on a single credit relationship. Refer to “Asset Quality” section for further discussion.

Non-interest Income

Quarter ended December 31, 2023 vs. December 31, 2022

Other income decreased to $11.9 million, as compared to $27.6 million. Other income was favorably impacted by non-core operations of $2.2 million and $17.2 million, for the respective quarters, related to net gains on equity investments, which included a $17.5 million unrealized gain on the Company’s investment in Auxilior Capital Partners, Inc. in the prior year.

Excluding non-core operations, other income decreased $679,000. The primary driver was a decrease in commercial loan swap income of $490,000, which was adversely impacted by the current interest rate environment resulting in lower swap volume.

Year ended December 31, 2023 vs. December 31, 2022

Other income decreased to $33.6 million, as compared to $59.1 million. Other income was adversely impacted by non-core operations of $4.4 million for the current year, primarily related to $5.3 million of losses related to the sale of investments in the first quarter. Other income for the prior year was favorably impacted by non-core operations of $9.7 million, primarily related to net gains on equity investments.

Excluding non-core operations, other income decreased $11.4 million. The primary drivers were decreases in commercial loan swap income of $6.3 million on lower volume, fees and service charges

of $1.5 million primarily due to lower title activity, and bank owned life insurance of $1.3 million related to non-recurring death benefits recognized in the prior year. Additionally, bankcard services revenue decreased $3.3 million due to the Durbin Amendment, which became effective for the Company on July 1, 2022.

Quarter ended December 31, 2023 vs. September 30, 2023

Other income in the prior linked quarter was $10.8 million, which included non-core operations of $1.5 million related to net gains on equity investments. Excluding non-core operations, other income increased by $375,000 primarily due to gain on sales of loans.

Non-interest Expense

Quarter ended December 31, 2023 vs. December 31, 2022

Operating expenses increased to $60.2 million, as compared to $59.7 million. Operating expenses were adversely impacted by non-core items of $1.7 million from the FDIC special assessment in the current year and $387,000 from merger related and branch consolidation expenses in the prior year.

Excluding non-core operations, operating expenses decreased $815,000. The primary drivers were decreases in compensation and benefits of $1.8 million due to lower incentive compensation and professional fees of $1.8 million tied to the Company’s performance improvement initiatives and strategic investments. This was partly offset by increases in data processing expense of $1.8 million, partly driven by one-time recoveries recorded in the prior year, and federal deposit insurance and regulatory assessments of $799,000, primarily due to new assessment rates that went into effect on January 1, 2023.

Year ended December 31, 2023 vs. December 31, 2022

Operating expenses increased to $248.9 million, as compared to $234.9 million. Operating expenses for the years were adversely impacted by $1.8 million and $3.4 million of non-core operations, respectively.

Excluding non-core operations, operating expenses increased by $15.7 million. This was due to increases in professional fees of $5.3 million and compensation and benefits of $3.9 million related to the Company’s performance improvement initiatives and strategic investments, and related severance and other program costs. Additionally, there were increases in federal deposit insurance and regulatory assessments of $2.1 million and data processing expense of $1.7 million, which were driven by the same factors as the three months ended. Marketing expense also increased $1.3 million due to the Company’s enhanced digital strategy efforts, and other operating expenses included higher expenses of $1.1 million primarily related to real estate charges on assets sold during the period from assets held for sale.

Quarter ended December 31, 2023 vs. September 30, 2023

Excluding non-core operations, operating expenses decreased by $6.0 million. This was primarily due to decreases in compensation and benefits expense of $3.4 million and professional fees of $2.4 million due to the Company’s improvement initiatives and strategic investments noted above.

Income Tax Expense

The provision for income taxes was $8.6 million and $32.7 million for the quarter and year ended December 31, 2023, respectively, as compared to $17.4 million and $46.6 million, for the same prior year periods, and $6.5 million for the prior linked quarter. The effective tax rate was 23.6% and 23.9% for the quarter and year ended December 31, 2023, respectively, as compared to 24.6% and 24.0% for the same prior year periods, and 23.9% for the prior linked quarter.

Financial Condition

December 31, 2023 vs. December 31, 2022

Total assets increased by $434.4 million to $13.54 billion, from $13.10 billion, primarily due to purchases of available-for-sale debt securities and loan growth. Available-for-sale debt securities increased by $296.2 million to $753.9 million, from $457.6 million, primarily due to purchases of variable-rate mortgage-backed securities in the fourth quarter of 2023. Total loans increased by $276.5 million to $10.19 billion, from $9.92 billion, due to loan originations and growth.

Other assets decreased by $41.4 million to $179.7 million, from $221.1 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

Total liabilities increased by $357.9 million to $11.88 billion, from $11.52 billion. Deposits increased by $759.7 million to $10.43 billion, from $9.68 billion. Time deposits increased by $903.4 million to $2.45 billion, from $1.54 billion, or 23.4% and 15.9% of total deposits, respectively. Retail time deposits increased $1.13 billion, while brokered time deposits decreased $242.0 million. The loans-to-deposit ratio was 97.7%, as compared to 102.5%. FHLB advances decreased by $362.5 million to $848.6 million, from $1.21 billion due to mix shift in funding sources from FHLB advances to deposits.

Other liabilities decreased by $45.4 million to $300.7 million, from $346.2 million, primarily due to a decrease in the market values associated with customer interest rate swaps and related collateral received from counterparties.

Total stockholders’ equity increased to $1.66 billion, as compared to $1.59 billion, primarily reflecting net income, net of dividends, for the year ended December 31, 2023. Additionally, accumulated other comprehensive loss decreased by $15.1 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company's estimated common equity tier 1 capital ratio increased to 10.88%, which included an estimated 30 bps improvement due to balance sheet optimization efforts completed in the fourth quarter.

For the year ended December 31, 2023, the Company did not repurchase shares under its stock repurchase program. There were 2,934,438 shares available for repurchase at December 31, 2023 under the existing repurchase program. Book value per common share increased to $27.96, as compared to $26.81. Tangible book value per common share2 increased to $18.35, as compared to $17.08.

Asset Quality

December 31, 2023 vs. December 31, 2022

The Company’s non-performing loans increased to $29.5 million from $23.3 million and represented 0.29% and 0.23% of total loans, respectively. The increase in non-performing loans was primarily driven by the remaining exposure of $8.8 million on a single credit relationship reported in the prior quarter.

The allowance for loan credit losses as a percentage of total non-performing loans was 227.21%, as compared to 244.25%. The level of 30 to 89 days delinquent loans increased to $19.2 million, from $14.1 million. The Company’s allowance for loan credit losses was 0.66% 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 $26.4 million, from $19.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 254.64%, as compared to 294.10%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $17.7 million, from $10.5 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $74.7 million, or 0.73% of total loans, as compared to $68.2 million, or 0.69% of total loans.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, 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 that 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.

Annual Meeting

The Company also announced today that its Annual Meeting of Stockholders will be held on Tuesday, May 21, 2024 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Monday, March 25, 2024. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, January 19, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-833-470-1428, toll free, using the access code 040735. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 247218, from one hour after the end of the call until February 16, 2024. The conference call will also be 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 $13.5 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, 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 effect of our rating under the Community Reinvestment Act, 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.

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)


	December 31, 2023		September 30, 2023		December 31, 2022
	(Unaudited)		(Unaudited)
Assets
Cash and due from banks	$	153,718	$	408,882	$	167,946
Debt securities available-for-sale, at estimated fair value	753,892		453,208		457,648
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,133 at December 31, 2023, $932 at September 30, 2023, and $1,128 at December 31, 2022 (estimated fair value of $1,068,438 at December 31, 2023, $1,047,342 at September 30, 2023, and $1,110,041 at December 31, 2022)	1,159,735		1,189,339		1,221,138
Equity investments	100,163		97,908		102,037
Restricted equity investments, at cost	93,766		82,484		109,278
Loans receivable, net of allowance for loan credit losses of $67,137 at December 31, 2023, $63,877 at September 30, 2023, and $56,824 at December 31, 2022	10,136,721		10,068,156		9,868,718
Loans held-for-sale	5,166		—		690
Interest and dividends receivable	51,874		50,030		44,704

Premises and equipment, net	121,372		122,646		126,705

Bank owned life insurance	266,498		265,071		261,603


Assets held for sale	28		3,004		2,719
Goodwill	506,146		506,146		506,146
Core deposit intangible	9,513		10,489		13,497
Other assets	179,661		240,820		221,067
Total assets	$	13,538,253	$	13,498,183	$	13,103,896
Liabilities and Stockholders’ Equity
Deposits	$	10,434,949	$	10,533,929	$	9,675,206
Federal Home Loan Bank advances	848,636		606,056		1,211,166
Securities sold under agreements to repurchase with customers	73,148		82,981		69,097
Other borrowings	196,456		196,183		195,403
Advances by borrowers for taxes and insurance	22,407		29,696		21,405
Other liabilities	300,712		411,734		346,155
Total liabilities	11,876,308		11,860,579		11,518,432
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity	1,661,163		1,636,891		1,584,662
Non-controlling interest	782		713		802









Total stockholders’ equity	1,661,945		1,637,604		1,585,464
Total liabilities and stockholders’ equity	$	13,538,253	$	13,498,183	$	13,103,896

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)


	For the Three Months Ended						For the Year Ended
	December 31,		September 30,		December 31,		December 31,
	2023		2023		2022		2023		2022
	\|--------------------- (Unaudited) ---------------------\|						(Unaudited)
Interest income:
Loans	$	137,110	$	133,931	$	117,046	$	521,865	$	390,386
Debt securities	15,444		15,223		10,951		59,273		34,407
Equity investments and other	7,880		9,256		2,280		26,836		6,382
Total interest income	160,434		158,410		130,277		607,974		431,175
Interest expense:
Deposits	59,467		53,287		13,425		172,018		31,021
Borrowed funds	13,143		14,127		10,364		66,225		22,677
Total interest expense	72,610		67,414		23,789		238,243		53,698
Net interest income	87,824		90,996		106,488		369,731		377,477
Provision for credit losses	3,153		10,283		3,647		17,678		7,768
Net interest income after provision for credit losses	84,671		80,713		102,841		352,053		369,709
Other income:
Bankcard services revenue	1,531		1,507		1,437		5,912		9,219
Trust and asset management revenue	610		662		551		2,529		2,386
Fees and service charges	5,315		5,178		5,776		21,254		22,802


Net gain on sales of loans	309		66		10		428		358
Net gain (loss) on equity investments	2,176		1,452		17,187		(3,732)		9,685
Net gain from other real estate operations	—		—		—		—		48
Income from bank owned life insurance	1,427		1,390		1,697		5,280		6,578
Commercial loan swap income	29		11		519		741		7,065
Other	464		496		374		1,212		953
Total other income	11,861		10,762		27,551		33,624		59,094
Operating expenses:
Compensation and employee benefits	32,126		35,534		33,943		135,802		131,915
Occupancy	5,218		5,466		5,027		21,188		20,817
Equipment	1,172		1,172		1,131		4,650		4,987
Marketing	1,112		1,183		705		4,238		2,947
Federal deposit insurance and regulatory assessments	4,386		2,557		1,924		11,157		7,359
Data processing	6,430		6,086		4,629		24,835		23,095
Check card processing	991		1,154		1,243		4,640		4,971
Professional fees	2,858		5,258		4,697		18,297		12,993

Amortization of core deposit intangible	976		987		1,159		3,984		4,718
Branch consolidation expense, net	—		—		111		70		713
Merger related expenses	—		—		276		22		2,735
Other operating expense	4,920		5,087		4,883		20,029		17,631
Total operating expenses	60,189		64,484		59,728		248,912		234,881
Income before provision for income taxes	36,343		26,991		70,664		136,765		193,922
Provision for income taxes	8,591		6,459		17,353		32,700		46,565
Net income	27,752		20,532		53,311		104,065		147,357
Net income (loss) attributable to non-controlling interest	70		(135)		39		36		754
Net income attributable to OceanFirst Financial Corp.	27,682		20,667		53,272		104,029		146,603
Dividends on preferred shares	1,004		1,004		1,004		4,016		4,016
Net income available to common stockholders	$	26,678	$	19,663	$	52,268	$	100,013	$	142,587
Basic earnings per share	$	0.46	$	0.33	$	0.89	$	1.70	$	2.43
Diluted earnings per share	$	0.46	$	0.33	$	0.89	$	1.70	$	2.42
Average basic shares outstanding	59,120		59,104		58,584		58,948		58,730
Average diluted shares outstanding	59,123		59,111		58,751		58,957		58,878

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(dollars in thousands)


LOANS RECEIVABLE			At
			December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Commercial:
Commercial real estate - investor			$	5,353,974	$	5,334,279	$	5,319,686	$	5,296,661	$	5,171,952
Commercial real estate - owner-occupied			943,891		957,216		981,618		986,366		997,367
Commercial and industrial			666,532		652,119		620,284		622,201		622,372
Total commercial			6,964,397		6,943,614		6,921,588		6,905,228		6,791,691
Consumer:
Residential real estate			2,979,534		2,928,259		2,906,556		2,881,811		2,861,991

Home equity loans and lines and other consumer (“other consumer”)			250,664		251,698		255,486		252,773		264,372

Total consumer			3,230,198		3,179,957		3,162,042		3,134,584		3,126,363
Total loans			10,194,595		10,123,571		10,083,630		10,039,812		9,918,054

Deferred origination costs (fees), net			9,263		8,462		8,267		7,332		7,488
Allowance for loan credit losses			(67,137)		(63,877)		(61,791)		(60,195)		(56,824)
Loans receivable, net			$	10,136,721	$	10,068,156	$	10,030,106	$	9,986,949	$	9,868,718
Mortgage loans serviced for others			$	68,217	$	52,796	$	50,820	$	50,421	$	51,736
	At December 31, 2023 Average Yield
Loan pipeline (1):
Commercial	8.61	%	$	124,707	$	50,756	$	39,164	$	236,550	$	114,232
Residential real estate	7.14		49,499		66,682		58,022		61,258		36,958
Other consumer	8.50		8,819		13,795		18,621		20,589		14,890
Total	8.21	%	$	183,025	$	131,233	$	115,807	$	318,397	$	166,080


	For the Three Months Ended
	December 31,				September 30,		June 30,		March 31,		December 31,
	2023				2023		2023		2023		2022
	Average Yield
Loan originations:
Commercial	7.68	%	$	94,294	$	90,263	$	197,732	$	200,504	$	539,949
Residential real estate	7.05		113,227		92,299		100,542		65,580		101,530		(2)
Other consumer	8.19		16,971		17,019		22,487		15,927		42,624
Total	7.40	%	$	224,492	$	199,581	$	320,761	$	282,011	$	684,103
Loans sold			$	20,138	$	15,404	$	18,664	$	3,861	$	2,340

(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.


DEPOSITS	At
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Type of Account
Non-interest-bearing	$	1,657,119	$	1,827,381	$	1,854,136	$	1,984,197	$	2,101,308
Interest-bearing checking	3,911,766		3,708,874		3,537,834		3,697,223		3,829,683
Money market	1,021,805		860,025		770,440		615,993		714,386
Savings	1,398,837		1,484,000		1,229,897		1,308,715		1,487,809
Time deposits (1)	2,445,422		2,653,649		2,766,030		2,386,967		1,542,020
Total deposits	$	10,434,949	$	10,533,929	$	10,158,337	$	9,993,095	$	9,675,206

(1)Includes brokered time deposits of $631.5 million, $995.5 million, $1.42 billion, $1.24 billion, and $873.4 million at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

OceanFirst Financial Corp.

ASSET QUALITY

(dollars in thousands)


ASSET QUALITY (1)	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Non-performing loans:
Commercial real estate - investor	$	20,820		$	20,723		$	13,000		$	13,643		$	10,483
Commercial real estate - owner-occupied	351			240			565			251			4,025
Commercial and industrial	304			1,120			199			162			331
Residential real estate	5,542			5,624			6,174			5,650			5,969
Other consumer	2,531			2,391			2,820			2,731			2,457

Total non-performing loans	$	29,548		$	30,098		$	22,758		$	22,437		$	23,265



Delinquent loans 30 to 89 days	$	19,202		$	20,591		$	3,136		$	11,232		$	14,148
Modifications to borrowers experiencing financial difficulty (2)
Non-performing (included in total non-performing loans above)	$	6,420		$	6,679		$	6,882		$	6,556		$	6,361
Performing	15,361			7,645			7,516			7,619			7,530
Total modification to borrowers experiencing financial difficulty (2)	$	21,781		$	14,324		$	14,398		$	14,175		$	13,891
Allowance for loan credit losses	$	67,137		$	63,877		$	61,791		$	60,195		$	56,824
Allowance for loan credit losses as a percent of total loans receivable (3)	0.66		%	0.63		%	0.61		%	0.60		%	0.57		%
Allowance for loan credit losses as a percent of total non-performing loans (3)	227.21			212.23			271.51			268.28			244.25
Non-performing loans as a percent of total loans receivable	0.29			0.30			0.23			0.22			0.23
Non-performing assets as a percent of total assets	0.22			0.22			0.17			0.17			0.18
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	16,122		$	18,640		$	18,872		$	20,513		$	27,129
Non-performing PCD loans	3,183			3,177			3,171			3,929			3,944
Delinquent PCD and non-performing loans 30 to 89 days	1,516			13,007			1,976			2,248			3,657
PCD modifications to borrowers experiencing financial difficulty (2)	771			750			755			758			765
Asset quality, excluding PCD loans (4)
Non-performing loans	26,365			26,921			19,587			18,508			19,321

Delinquent loans 30 to 89 days (excludes non-performing loans)	17,686			7,584			1,160			8,984			10,491



Modification to borrowers experiencing financial difficulty (2)	21,010			13,574			13,643			13,417			13,126
Allowance for loan credit losses as a percent of total non-performing loans (3)	254.64		%	237.28		%	315.47		%	325.24		%	294.10		%
Non-performing loans as a percent of total loans receivable	0.26			0.27			0.19			0.18			0.19
Non-performing assets as a percent of total assets	0.19			0.20			0.14			0.14			0.15

(1)At December 31, 2023 and September 30, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially 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 the 2022 period, the balances represent only 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 $7.5 million, $8.8 million, $9.8 million, $10.5 million, and $11.4 million at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

(4)All balances and ratios exclude PCD loans.


NET LOAN (CHARGE-OFFS) RECOVERIES	For the Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023		December 31, 2022
Net loan (charge-offs) recoveries:
Loan charge-offs	$	(98)		$	(8,379)		$	(206)		$	(10)	$	(138)
Recoveries on loans	63			108			83			57		143
Net loan (charge-offs) recoveries	$	(35)		$	(8,271)		$	(123)		$	47	$	5
Net loan (charge-offs) recoveries to average total loans (annualized)	—		%	0.33		%	—		%	NM*		NM*
Net loan (charge-offs) recoveries detail:
Commercial	$	9		$	(8,332)		$	(117)		$	—	$	(46)
Residential real estate	9			17			9			8		9
Other consumer	(53)			44			(15)			39		42

Net loan (charge-offs) recoveries	$	(35)		$	(8,271)		$	(123)		$	47	$	5

* Not meaningful as amounts are net loan recoveries.

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME


	For the Three Months Ended
	December 31, 2023						September 30, 2023						December 31, 2022
(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	$	396,843	$	5,423	5.42	%	$	470,825	$	6,440	5.43	%	$	70,023	$	634	3.59	%
Securities (2)	1,863,136		17,901		3.81		1,873,450		18,039		3.82		1,764,764		12,597		2.83
Loans receivable, net (3)
Commercial	6,937,191		105,260		6.02		6,923,743		103,069		5.91		6,715,896		88,991		5.26
Residential real estate	2,957,671		27,934		3.78		2,918,612		26,765		3.67		2,841,073		24,532		3.45
Other consumer	250,300		3,916		6.21		252,126		4,097		6.45		262,911		3,523		5.32

Allowance for loan credit losses, net of deferred loan costs and fees	(56,001)		—		—		(53,959)		—		—		(48,776)		—		—
Loans receivable, net	10,089,161		137,110		5.40		10,040,522		133,931		5.30		9,771,104		117,046		4.76
Total interest-earning assets	12,349,140		160,434		5.16		12,384,797		158,410		5.08		11,605,891		130,277		4.46
Non-interest-earning assets	1,243,967						1,252,416						1,228,520
Total assets	$	13,593,107					$	13,637,213					$	12,834,411
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,908,517	19,728		2.00	%	$	3,692,500	14,938		1.61	%	$	3,989,403	4,911		0.49	%
Money market	941,859		7,520		3.17		832,729		5,698		2.71		738,637		917		0.49
Savings	1,446,935		5,193		1.42		1,391,811		3,311		0.94		1,539,175		285		0.07
Time deposits	2,596,706		27,026		4.13		2,867,921		29,340		4.06		1,486,410		7,312		1.95
Total	8,894,017		59,467		2.65		8,784,961		53,287		2.41		7,753,625		13,425		0.69
FHLB advances	615,172		7,470		4.82		701,343		8,707		4.93		632,207		6,475		4.06
Securities sold under agreements to repurchase	80,181		387		1.91		76,620		261		1.35		88,191		41		0.18
Other borrowings (4)	321,369		5,286		6.53		317,210		5,159		6.45		195,167		3,848		7.82
Total borrowings	1,016,722		13,143		5.13		1,095,173		14,127		5.12		915,565		10,364		4.49
Total interest-bearing liabilities	9,910,739		72,610		2.91		9,880,134		67,414		2.71		8,669,190		23,789		1.09
Non-interest-bearing deposits	1,739,499						1,841,198						2,221,884
Non-interest-bearing liabilities (4)	292,170						272,982						378,481
Total liabilities	11,942,408						11,994,314						11,269,555
Stockholders’ equity	1,650,699						1,642,899						1,564,856
Total liabilities and equity	$	13,593,107					$	13,637,213					$	12,834,411
Net interest income			$	87,824					$	90,996					$	106,488
Net interest rate spread (5)					2.25	%					2.37	%					3.37	%
Net interest margin (6)					2.82	%					2.91	%					3.64	%
Total cost of deposits (including non-interest-bearing deposits)					2.22	%					1.99	%					0.53	%

(continued)


	For the Year Ended
	December 31, 2023						December 31, 2022
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost		Average Balance		Interest		Average Yield/ Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	327,539	$	17,084	5.22	%	$	72,913	$	1,106	1.52	%
Securities (2)	1,905,413		69,025		3.62		1,792,598		39,683		2.21
Loans receivable, net (3)
Commercial	6,903,731		400,459		5.80		6,386,755		287,044		4.49
Residential real estate	2,911,246		105,796		3.63		2,724,398		91,432		3.36
Other consumer	255,359		15,610		6.11		256,912		11,910		4.64

Allowance for loan credit losses, net of deferred loan costs and fees	(53,477)		—		—		(44,446)		—		—
Loans receivable, net	10,016,859		521,865		5.21		9,323,619		390,386		4.19
Total interest-earning assets	12,249,811		607,974		4.96		11,189,130		431,175		3.85
Non-interest-earning assets	1,237,218						1,200,725
Total assets	$	13,487,029					$	12,389,855
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,795,502	52,898		1.39	%	$	4,063,716	11,344		0.28	%
Money market	794,387		18,656		2.35		764,837		2,234		0.29
Savings	1,364,333		9,227		0.68		1,597,648		758		0.05
Time deposits	2,440,829		91,237		3.74		1,167,499		16,685		1.43
Total	8,395,051		172,018		2.05		7,593,700		31,021		0.41
FHLB advances	944,219		46,000		4.87		389,750		10,365		2.66
Securities sold under agreements to repurchase	75,140		931		1.24		101,377		159		0.16
Other borrowings (4)	307,368		19,294		6.28		203,117		12,153		5.98
Total borrowings	1,326,727		66,225		4.99		694,244		22,677		3.27
Total interest-bearing liabilities	9,721,778		238,243		2.45		8,287,944		53,698		0.65
Non-interest-bearing deposits	1,869,735						2,319,657
Non-interest-bearing liabilities (4)	262,883						239,861
Total liabilities	11,854,396						10,847,462
Stockholders’ equity	1,632,633						1,542,393
Total liabilities and equity	$	13,487,029					$	12,389,855
Net interest income			$	369,731					$	377,477
Net interest rate spread (5)					2.51	%					3.20	%
Net interest margin (6)					3.02	%					3.37	%
Total cost of deposits (including non-interest-bearing deposits)					1.68	%					0.31	%

(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.

OceanFirst Financial Corp.

SELECTED QUARTERLY FINANCIAL DATA

(in thousands, except per share amounts)


	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Selected Financial Condition Data:
Total assets	$	13,538,253	$	13,498,183	$	13,538,903	$	13,555,175	$	13,103,896
Debt securities available-for-sale, at estimated fair value	753,892		453,208		452,016		452,195		457,648
Debt securities held-to-maturity, net of allowance for securities credit losses	1,159,735		1,189,339		1,222,507		1,245,424		1,221,138
Equity investments	100,163		97,908		96,452		101,007		102,037
Restricted equity investments, at cost	93,766		82,484		105,305		115,750		109,278
Loans receivable, net of allowance for loan credit losses	10,136,721		10,068,156		10,030,106		9,986,949		9,868,718

Deposits	10,434,949		10,533,929		10,158,337		9,993,095		9,675,206
Federal Home Loan Bank advances	848,636		606,056		1,091,666		1,346,566		1,211,166
Securities sold under agreements to repurchase and other borrowings	269,604		279,164		270,377		266,601		264,500
Total stockholders’ equity	1,661,945		1,637,604		1,626,283		1,610,371		1,585,464


	For the Three Months Ended
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Selected Operating Data:
Interest income	$	160,434	$	158,410	$	150,096	$	139,034	$	130,277
Interest expense	72,610		67,414		57,987		40,232		23,789
Net interest income	87,824		90,996		92,109		98,802		106,488
Provision for credit losses	3,153		10,283		1,229		3,013		3,647
Net interest income after provision for credit losses	84,671		80,713		90,880		95,789		102,841
Other income (excluding activity related to debt and equity investments)	9,685		9,310		9,487		9,571		10,364
Net gain (loss) on equity investments	2,176		1,452		(559)		(2,193)		17,187
Net loss on sale of investments	—		—		—		(5,305)		—
Operating expenses (excluding FDIC special assessment, merger related and branch consolidation expense, net)	58,526		64,484		62,930		61,217		59,341

FDIC special assessment	1,663		—		—		—		—
Branch consolidation expense, net	—		—		—		70		111
Merger related expenses	—		—		—		22		276
Income before provision for income taxes	36,343		26,991		36,878		36,553		70,664
Provision for income taxes	8,591		6,459		8,996		8,654		17,353
Net income	27,752		20,532		27,882		27,899		53,311
Net income (loss) attributable to non-controlling interest	70		(135)		85		16		39
Net income attributable to OceanFirst Financial Corp.	$	27,682	$	20,667	$	27,797	$	27,883	$	53,272
Net income available to common stockholders	$	26,678	$	19,663	$	26,793	$	26,879	$	52,268
Diluted earnings per share	$	0.46	$	0.33	$	0.45	$	0.46	$	0.89
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	1,604	$	1,745	$	1,152	$	1,237	$	2,278

(continued)


	At or For the Three Months Ended
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Selected Financial Ratios and Other Data (1) (2):
Performance Ratios (Annualized):
Return on average assets (3)	0.78	%	0.57	%	0.80	%	0.82	%	1.62	%
Return on average tangible assets (3) (4)	0.81		0.59		0.83		0.86		1.68
Return on average stockholders' equity (3)	6.41		4.75		6.61		6.77		13.25
Return on average tangible stockholders' equity (3) (4)	9.33		6.93		9.70		10.00		19.85
Return on average tangible common equity (3) (4)	9.81		7.29		10.21		10.53		20.97
Stockholders' equity to total assets	12.28		12.13		12.01		11.88		12.10
Tangible stockholders' equity to tangible assets (4)	8.80		8.64		8.51		8.37		8.47
Tangible common equity to tangible assets (4)	8.38		8.21		8.09		7.95		8.03
Net interest rate spread	2.25		2.37		2.52		2.94		3.37
Net interest margin	2.82		2.91		3.02		3.34		3.64
Operating expenses to average assets	1.76		1.88		1.87		1.88		1.85
Efficiency ratio (5)	60.38		63.37		62.28		60.78		44.56
Loans-to-deposits	97.70		96.10		99.30		100.50		102.50


	At or For the Year Ended December 31,
	2023		2022
Performance Ratios:
Return on average assets (3)	0.74	%	1.15	%
Return on average tangible assets (3) (4)	0.77		1.20
Return on average stockholders' equity (3)	6.13		9.24
Return on average tangible stockholders' equity (3) (4)	8.97		13.96
Return on average tangible common equity (3) (4)	9.44		14.76
Net interest rate spread	2.51		3.20
Net interest margin	3.02		3.37
Operating expenses to average assets	1.85		1.90
Efficiency ratio (5)	61.71		53.80

(continued)


	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2023			2023			2023			2023			2022
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	335,769		$	336,913		$	339,890		$	333,436		$	324,066
Nest Egg AUA/M	401,420			385,317			397,927			400,227			403,538
Total AUA/M	737,189			722,230			737,817			733,663			727,604
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	27.96			27.56			27.37			27.07			26.81
Tangible book value per common share at end of period (4)	18.35			17.93			17.72			17.42			17.08
Common shares outstanding at end of period	59,447,684			59,421,498			59,420,859			59,486,086			59,144,128
Preferred shares outstanding at end of period	57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:	39			38			38			38			38
Quarterly Average Balances
Total securities	$	1,863,136		$	1,873,450		$	1,931,032		$	1,955,399		$	1,764,764
Loans receivable, net	10,089,161			10,040,522			10,010,785			9,924,905			9,771,104
Total interest-earning assets	12,349,140			12,384,797			12,250,055			12,010,044			11,605,891
Total goodwill and core deposit intangible	516,289			517,282			518,265			519,282			520,400
Total assets	13,593,107			13,637,213			13,467,721			13,244,593			12,834,411

Time deposits	2,596,706			2,867,921			2,458,872			1,826,662			1,486,410
Total deposits (including non-interest-bearing deposits)	10,633,516			10,626,159			9,993,010			9,793,256			9,975,509
Total borrowings	1,016,722			1,095,173			1,603,126			1,600,845			915,565
Total interest-bearing liabilities	9,910,739			9,880,134			9,722,910			9,365,594			8,669,190
Non-interest bearing deposits	1,739,499			1,841,198			1,873,226			2,028,507			2,221,884
Stockholders’ equity	1,650,699			1,642,899			1,626,693			1,609,677			1,564,856
Tangible stockholders’ equity (4)	1,134,410			1,125,617			1,108,428			1,090,395			1,044,456
Quarterly Yields and Costs
Total securities	3.81		%	3.82		%	3.47		%	3.40		%	2.83		%
Loans receivable, net	5.40			5.30			5.17			4.96			4.76
Total interest-earning assets	5.16			5.08			4.91			4.68			4.46

Time deposits	4.13			4.06			3.57			2.88			1.95
Total cost of deposits (including non-interest-bearing deposits)	2.22			1.99			1.52			0.88			0.53
Total borrowed funds	5.13			5.12			5.02			4.79			4.49
Total interest-bearing liabilities	2.91			2.71			2.39			1.74			1.09
Net interest spread	2.25			2.37			2.52			2.94			3.37
Net interest margin	2.82			2.91			3.02			3.34			3.64

(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.

OceanFirst Financial Corp.

OTHER ITEMS

(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION


	For the Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Core Earnings:
Net income available to common stockholders (GAAP)	$	26,678		$	19,663		$	26,793		$	26,879		$	52,268
(Less) add non-recurring and non-core items:
Net (gain) loss on equity investments (1)	(2,176)			(1,452)			559			2,193			(17,187)
Net loss on sale of investments (1)	—			—			—			5,305			—
FDIC special assessment	1,663			—			—			—			—
Merger related expenses	—			—			—			22			276
Branch consolidation expense, net	—			—			—			70			111





Income tax expense (benefit) on items	129			351			(162)			(1,797)			4,060
Core earnings (Non-GAAP)	$	26,294		$	18,562		$	27,190		$	32,672		$	39,528
Income tax expense	$	8,591		$	6,459		$	8,996		$	8,654		$	17,353
Provision for credit losses	3,153			10,283			1,229			3,013			3,647
Less: income tax expense (benefit) on non-core items	129			351			(162)			(1,797)			4,060
Core earnings PTPP (Non-GAAP)	$	37,909		$	34,953		$	37,577		$	46,136		$	56,468
Core diluted earnings per share	$	0.45		$	0.32		$	0.46		$	0.55		$	0.67
Core earnings PTPP diluted earnings per share	$	0.65		$	0.59		$	0.64		$	0.78		$	0.96

Core Ratios (Annualized):
Return on average assets	0.77		%	0.54		%	0.81		%	1.00		%	1.22		%

Return on average tangible stockholders’ equity	9.20			6.54			9.84			12.15			15.01
Return on average tangible common equity	9.67			6.88			10.36			12.80			15.86
Efficiency ratio	60.02			64.29			61.94			56.49			50.78
(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.

(continued)


	For the Years Ended December 31,
	2023			2022
Core Earnings:
Net income available to common stockholders (GAAP)	$	100,013		$	142,587
(Less) add non-recurring and non-core items:
Net gain on equity investments (1)	(876)			(9,685)
Net loss on sale of investments (1)	5,305			—
FDIC special assessment	1,663			—
Merger related expenses	22			2,735
Branch consolidation expense, net	70			713




Income tax (benefit) expense on items	(1,479)			1,611
Core earnings (Non-GAAP)	$	104,718		$	137,961
Income tax expense	$	32,700		$	46,565
Credit loss provision	17,678			7,768
Less: income tax (benefit) expense on non-core items	(1,479)			1,611
Core earnings PTPP (Non-GAAP)	$	156,575		$	190,683
Core diluted earnings per share	$	1.78		$	2.34
Core earnings PTPP diluted earnings per share	$	2.66		$	3.24

Core Ratios:
Return on average assets	0.78		%	1.11		%

Return on average tangible stockholders’ equity	9.39			13.50
Return on average tangible common equity	9.89			14.28
Efficiency ratio	60.61			54.21
(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.

(continued)


	December 31,			September 30,			June 30,			March 31,			December 31,
	2023			2023			2023			2023			2022
Tangible Equity:
Total stockholders' equity	$	1,661,945		$	1,637,604		$	1,626,283		$	1,610,371		$	1,585,464
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	9,513			10,489			11,476			12,470			13,497
Tangible stockholders’ equity	1,146,286			1,120,969			1,108,661			1,091,755			1,065,821
Less:
Preferred stock	55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,090,759		$	1,065,442		$	1,053,134		$	1,036,228		$	1,010,294

Tangible Assets:
Total assets	$	13,538,253		$	13,498,183		$	13,538,903		$	13,555,175		$	13,103,896
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	9,513			10,489			11,476			12,470			13,497
Tangible assets	$	13,022,594		$	12,981,548		$	13,021,281		$	13,036,559		$	12,584,253

Tangible stockholders' equity to tangible assets	8.80		%	8.64		%	8.51		%	8.37		%	8.47		%
Tangible common equity to tangible assets	8.38		%	8.21		%	8.09		%	7.95		%	8.03		%

. . . 1 The 4Q 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 January 18, 2024. Exhibit 99.2 OceanFirst Financial Corp. 4Q 2023 Earnings Release Supplement1 January 2024

. . .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, 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 effect of our rating under the Community Reinvestment Act, 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 January 18, 2024. 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

. . .Q4-23 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. (2) Estimated. Financial Highlights $0.45 Core Diluted EPS 1 $88 million Net Interest Income 0.77% Core ROAA 1 9.67% Core ROTCE 1 $0.65 Core PTPP Diluted EPS 1 10.9% CET1 Ratio 2 ▪ Total deposits, excluding time deposits, increased by 1% from prior linked quarter. Net deposit growth funded a reduction in brokered time deposits of $364 million. ▪ In line with Management expense guidance, core non-interest expense(1) decreased to $58.5 million, representing a $6 million (or 9%) drop from the linked quarter. Core non-interest expense to total average assets1 declined to 1.7%, a 17 bps decline from the linked quarter. ▪ Capital remains strong and above “well capitalized” levels.

. . . 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 single-digit annualized growth in 2024. ▪ Loan yields continue to improve. 5,172 5,297 5,320 5,334 5,354 997 986 982 957 944 622 622 620 652 666 2,862 2,882 2,907 2,928 2,980 4.76% 264 Q4-22 4.96% 253 Q1-23 5.17% 255 Q2-23 5.30% 252 Q3-23 5.40% 251 Q4-23 9,918 10,040 10,084 10,124 10,195 Average Loan Yield Home Equity & Consumer Residential C&I 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 $969 million (or 10% of total loans), is set to mature in 2024 and 2025 with weighted average rates of 6.09% and 6.31%, for each respective cohort. ▪ A repricing analysis(2) was performed on the vast majority of the CRE Investor and Construction portfolio. Results indicated the portfolio continues to service debt without unusual stress. ▪ The weighted average DSCR of loans after stressing the portfolio at an interest rate of 7% is 1.21x. ▪ Refer to the Appendices for additional disclosures on the Office portfolio. 6 CRE Investor Owner Portfolio by Geography Notes: All data presented represents CRE Investor balances, excluding purchase accounting marks and Construction as of December 31, 2023, unless otherwise noted. (1) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other. (2) Repricing analysis as of Q1-23 included stressing portfolio with an increase to 7% interest rates while keeping unwritten rents constant. We are actively tracking CRE loan underlying cash flows and noted no material change from Q1-23. As such, we have deemed the results from the repricing analysis to be relevant for the current quarter. Maturity Wall Detail Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans 2024 390 6.09 63.57 1.60 3.82% 2025 579 6.31 54.38 1.91 5.68% Total 969 6.22 58.07 1.79 9.50% 33% 27% 25% 9% NY PA/DE NJ 3% MA 3% MD/DC Other CRE Investor Owned - Collateral Details $'millions CRE: Investor Owned % of Total WA LTV WA DSCR Retail 1,082 23.1% 56.9 1.64 Office 1,106 23.6% 54.9 1.74 Multi-Family 903 19.2% 56.6 1.61 Industrial / Warehouse 704 15.0% 51.3 2.11 Hospitality 139 3.0% 49.6 1.31 Other 1 759 16.2% 47.1 1.67 CRE: Investor Owned 4,693 100.0% 53.7 1.72 Construction 661 CRE IO and Construction Total 5,354

. . . Strong asset quality trends driven by prudent loan growth and credit decisioning. Quarterly Credit Trends (1 of 2) 7 Non-Performing Loans and Assets ($’000)1 Special Mention and Substandard Loans ($’000) Note: At December 31, 2023, of the Special Mention loans and Substandard loans represented above, 96.3% and 79.2% were current on payments, respectively. Note #2: Peer data is on a one quarter lag. 0.19% 0.15% Q4-22 0.18% 0.14% Q1-23 0.19% Q2-23 0.27% Q3-23 0.26% 0.19% Q4-23 Non-performing loans to total loans Non-performing assets to total assets Non-performing loans 19,321 18,508 26,365 (1) PCD loans are not included in these metrics. Refer to Asset Quality section in the Earnings Release for additional information. 19,587 50,776 86,765 88,152 86,596 106,55148,214 23,980 30,859 44,940 40,386 2.46% 1.00% Q4-22 2.39% Q1-23 2.53% 1.18% Q2-23 2.70% 1.30% Q3-23 1.44% Q4-23 1.10% Peer Average Criticized Loans / Total Loans OCFC Criticized Loans / Total Loans Special Mention Substandard 26,921 0.14% Criticized loans as a % of total loans remain low at 1.44% as of Q4-23 compared to 2.06% as of Q4-19 (pre-pandemic). 0.20% In Q3-23, the Bank charged-off $8 million on a single CRE credit relationship. The remaining exposure of $9 million is included in the non- performing loan balance at Q3-23 and Q4-23.

. . .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) 0.12% 0.57% Q4-22 0.10% 0.60% Q1-23 0.10% 0.61% Q2-23 0.09% 0.63% Q3-23 Q4-23 0.69% 0.70% 0.71% 0.72% 0.73% 0.66% 0.07% PCD & General Credit Marks ACL 10,283 3,153 (47) 123 8,271 35 3,647 Q4-22 3,013 Q1-23 1,229 Q2-23 Q3-23 Q4-23 (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 for the year totaled 0.08%.

. . . 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. ▪ From 2006 to 2022, 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 Q3-23 Q4-23 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 Q4-23 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. ▪ Non-maturity deposits increased by $109 million (or 1%) from the linked quarter. ▪ High yield savings grew by $42 million from the previous quarter, driving an improvement in the quality of our deposit base as these will reprice should rates moderate next year. ▪ The decline in Q4-23 time deposits is driven by a decrease in brokered CDs of $364 million. Shift in Deposit Mix to Drive Retention ($’millions) 10.00% 0.61% Q4-22 20.00% 1.15% Q1-23 29.00% 1.67% Q2-23 35.00% 2.02% Q3-23 38.00% 2.18% Q4-23 Deposit Beta (1) Cost of Deposits (Spot) 1,542 2,387 2,766 2,654 2,445 714 616 770 860 1,0221,488 1,309 1,230 1,484 1,399 3,830 3,697 3,538 3,709 3,912 2,101 1,984 1,854 1,827 1,657 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 9,675 9,993 10,158 10,534 10,435 Non Int. Bearing Int. Bearing Checking Savings Money Market Time Deposits Deposit Beta and Cost Trend 10% 20% 29% 35% 38% Cost of Deposits Type of Account Qtr. Avg. Dec 31 Spot Int. Bearing Checking 2.00% 2.02% Money Market 3.17% 3.18% Savings 1.42% 1.36% Time Deposits 4.13% 4.12% Total (incl. non-int bearing) 2.22% 2.21%

. . .Net Interest Income and Net Interest Margin Trends 11 (1) Core NIM excludes purchase accounting and prepayment fee income. Refer to the Earnings Release for additional information. Core NIM1 vs NIM NIM Bridge Q3-23 NIM -0.08 Rate environment, change in balances and funding mix, and other -0.01 Quarter-specific impacts (PA accretion for payoffs) Q4-23 NIM 2.91% 2.82% 3.64% 3.54% Q4-22 3.34% 3.30% Q1-23 3.02% 2.97% Q2-23 2.91% 2.85% Q3-23 2.82% 2.77% Q4-23 NIM Core NIM Net Interest Income ($’000) 106,488 Q4-22 98,802 Q1-23 92,109 Q2-23 90,996 Q3-23 87,824 Q4-23 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 12 Core Non-Interest Expense1 ($’000) 7,990 7,852 8,629 8,411 7,999 4,697 5,098 5,083 5,258 2,858 4,629 6,154 6,165 6,086 6,430 1,924 1,749 2,465 2,557 2,723 6,158 6,444 6,366 6,638 6,390 33,943 33,920 34,222 35,534 32,126 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 59,341 61,217 62,930 64,484 58,526 Compensation & employee benefits Occupancy & Equipment FDIC & regulatory assessments Data processing Professional fees Other Opex 50.78% Q4-22 56.49% Q1-23 61.94% Q2-23 64.29% Q3-23 60.02% Q4-23 1.88% 1.87% 1.87% 1.88% 1.71% 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. (2)Other Opex includes marketing, check card processing, amortization of CDI, and other expenses. ▪ Q4-23 core operating expenses decreased $6.0 million from the prior linked quarter to $58.5 million primarily driven by a reduction in compensation costs and professional fees. ▪ Q4-23 core operating expenses exclude the $1.7 million pre-tax FDIC special assessment. (2)

. . .Generating Consistent Returns 13 Book Value and Tangible Book Value per Common Share ($)1, 2 Core ROAA1, ROTE1, and ROTCE1 • Tangible book value per common share increased by $1.27 (or 7%) compared to the same quarter last year. • We have an outstanding share repurchase authorization totaling 2.9 million. • Capital remains strong and above “well capitalized” levels. Capital Management ($’millions) 17.08 17.42 17.72 17.93 18.35 26.81 27.07 27.37 27.56 27.96 9.9 10.0 10.2 10.4 10.9 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 CET1 Book Value per Share Tangible Book Value per Common Share 15.01% 15.86% 1.22% Q4-22 12.15% 12.80% 1.00% Q1-23 9.84% 10.36% 0.81% Q2-23 6.54% 6.88% 0.54% Q3-23 9.20% 9.67% 0.77% Q4-23 Core ROTE Core ROTCE Core ROAA 12 12 12 12 12 8.47% 0 Q4-22 8.37% 0 Q1-23 8.51% 0 Q2-23 8.64% 0 Q3-23 8.80% 0 Q4-23 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. (2) CET1 ratio represents an estimate as of Q4-23.

. . .Management 2024 Outlook 14 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 the entire 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. Single-digit growth for full year Single-digit growth for full year Flat run-rate in 2024 Stable throughout 2024 Robust CET1 ratio (>10%) Guidance Key Assumptions / Commentary • We continue to exercise disciplined expense control and anticipate the run-rate to remain flat in 2024. • We have some additional expense management initiatives that are in progress in 2024. • We expect to maintain our common equity tier 1 ratio above 10%. • We plan to utilize our share repurchase authority in a prudent manner to maintain these capital levels. • Our share repurchase authorization has a remaining 2.9 million shares available. • Expecting stabilization and potential modest expansion beginning by mid-2024, subject to interest rate, loan growth, and funding trends.

. . . I N V E S T O R P R E S E N T A T I O N 15 Appendix

. . .CBD Office Concentration Exposure Is Moderate 16 CBD Office Portfolio by Geography 13% 36% 33% 18% New York City Newark Boston Philadelphia Central Business District (CBD) - Office $'millions Book Balance % of Total WA LTV WA DSCR Credit Tenant 44 35.6% 61.3 1.79 Office 42 33.8% 56.2 2.02 Life Sciences & Medical 38 30.6% 80.6 1.33 CBD - Office 123 11.3% 65.5 1.73 % of Total Loans 1.2% CRE Investor Owned: Office (All Geographies) $'millions Book Balance % of Total WA LTV WA DSCR Office 533 48.2% 51.8 1.78 Medical 346 31.3% 57.8 1.92 Credit Tenant 228 20.6% 64.6 1.62 Total Office 1,106 100.0% 56.3 1.79 % of Total Loans 10.8% CBD Proportion of Total Assets 99% 1% CBD Non-CBD Office Loan Classifications 98% 2% Criticized & Classified Non Criticized & Classified Central business district (CBD) loans have a weighted average LTV of 65.5% and weighted average DSCR of 1.73.

. . . COVID-19 Pandemic Northeast Outperforms Through Credit Cycles… 17 ▪ Historically, net charge-offs for Northeastern headquartered banks have greatly outperformed major exchange traded U.S. banks headquartered in other regions ▪ Median net charge-offs / average assets for Northeastern banks averaged 15 bps during the Global Financial Crisis compared to 50 bps for other regions. In Q2-23, median NCOs / average assets totaled 1 bp for Northeastern banks versus 2 bps for other regions Global Financial Crisis Hurricane Sandy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1-23 Q2-23 Northeast NCO / Avg Assets Mid-Atlantic NCO / Avg Assets Southeast NCO / Avg Assets Midwest NCO / Avg Assets Southwest NCO / Avg Assets West NCO / Avg Assets Source: SNL Financial. GFC Peak NCOs 1.3x 1.7x 2.6x 6.0x3.4x Multiple of Northeast 0.24% 0.32% 0.40% 0.63% 0.80% 1.43% Northeast Southwest Mid Atlantic Midwest Southeast West

. . . COVID-19 Pandemic Global Financial Crisis Hurricane Sandy …With a Similar Story in Commercial Real Estate Portfolios 18 ▪ Northeastern banks’ CRE portfolio net charge-offs have also historically outperformed major exchange traded banks in other regions ▪ Median CRE net charge-offs / average assets for Northeastern banks averaged 2 bps during the Global Financial Crisis compared to 6 bps for other regions 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1-23 Q2-23 Northeast CRE NCO / Avg Assets Mid-Atlantic CRE NCO / Avg Assets Southeast CRE NCO / Avg Assets Midwest CRE NCO / Avg Assets Southwest CRE NCO / Avg Assets West CRE NCO / Avg Assets Source: SNL Financial. GFC Peak CRE NCOs 1.4x 1.7x 3.3x 6.2x4.2x Multiple of Northeast 0.03% 0.04% 0.04% 0.09% 0.11% 0.16% Northeast Southwest Mid Atlantic Southeast Midwest West

. . .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 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Core Earnings: Net income available to common stockholders (GAAP) 26,678 19,663 26,793 26,879 52,268 Add (less) non-recurring and non-core items: Merger related expenses - - 22 276 Branch consolidation expense, net - - 70 111 Net (gain) loss on equity investments (1) (2,176) (1,452) 559 2,193 (17,187) Net loss on sale of investments (1) - - - 5,305 - FDIC special assessment 1,663 - - - - Income tax expense (benefit) on items 129 351 (162) (1,797) 4,060 Core earnings (Non-GAAP) 26,294 18,562 27,190 32,672 39,528 Income tax expense 8,591 6,459 8,996 8,654 17,353 Provision for credit losses 3,153 10,283 1,229 3,013 3,647 Less: income tax expense (benefit) on non-core items 129 351 (162) (1,797) 4,060 Core earnings PTPP (Non-GAAP) 37,909 34,953 37,577 46,136 56,468 Core earnings diluted earnings per share 0.45 0.32 0.46 0.55 0.67 Core earnings PTPP diluted earnings per share 0.65 0.59 0.64 0.78 0.96 Core Ratios (Annualized): Return on average assets 0.77 0.54 0.81 1.00 1.22 Return on average tangible stockholders' equity 9.20 6.54 9.84 12.15 15.01 Return on average tangible common equity 9.67 6.88 10.36 12.80 15.86 Efficiency ratio 60.02 64.29 61.94 56.49 50.78

. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Tangible Equity Total stockholders' equity 1,661,945 1,637,604 1,626,283 1,610,371 1,585,464 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 9,513 10,489 11,476 12,470 13,497 Tangible stockholders' equity 1,146,286 1,120,969 1,108,661 1,091,755 1,065,821 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,090,759 1,065,442 1,053,134 1,036,228 1,010,294 Tangible Assets Total Assets 13,538,253 13,498,183 13,538,903 13,555,175 13,103,896 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 9,513 10,489 11,476 12,470 13,497 Tangible assets 13,022,594 12,981,548 13,021,281 13,036,559 12,584,253

Document and Entity Information	Jan. 18, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jan. 18, 2024
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
Depositary Shares
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