OceanFirst Financial Q4 Earnings Drop to $20.9M Despite Margin Growth and Strong Loan Activity

OceanFirst Financial Corp.听Announces Quarterly and Annual Financial Results

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Insights

The Q4 2024 results from OceanFirst Financial reveal a complex operating environment with mixed signals. While the headline earnings decline is concerning, there are several positive underlying trends worth noting.

The net interest margin expansion to 2.69% (up 2 basis points) marks a potential inflection point, particularly impressive given the challenging rate environment. This improvement was achieved through strategic liability management, with deposit costs decreasing to 2.32% from 2.44% quarter-over-quarter.

Asset quality metrics show notable improvement:

Criticized and classified assets decreased by 16%
Net loan recoveries of $158,000 in Q4
Capital levels strengthened with CET1 ratio increasing 30 basis points to 11.2%

However, there are concerning trends that warrant attention:

Efficiency ratio deteriorated to 67.86% from 60.38% YoY
Operating expenses increased 7.6% YoY excluding non-core items
Return on average assets declined to 0.61% from 0.78% YoY

The Spring Garden acquisition, while strategic for specialty finance expansion, has created some near-term pressure with a $1.4M initial provision impact. However, this diversification move could enhance revenue streams long-term.

The transformation of the deposit base is noteworthy, with $556.8M reduction in higher-cost brokered deposits year-over-year, replaced by more stable retail funding. This positions the bank for better funding costs in 2025, though the 100.5% loan-to-deposit ratio suggests continued funding pressure.

01/23/2025 - 04:15 PM

RED BANK, N.J., Jan. 23, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:鈥淥CFC鈥�) (the 鈥淐ompany鈥�), the holding company for OceanFirst Bank N.A. (the 鈥淏ank鈥�), announced net income available to common stockholders of $20.9 million, or $0.36 per diluted share, for the quarter ended December 31, 2024, a decrease from $26.7 million, or $0.46 per diluted share, for the corresponding prior year period, and $24.1 million, or $0.42 per diluted share, for the prior linked quarter. For the year ended December 31, 2024, the Company reported net income available to common stockholders of $96.0 million, or $1.65 per diluted share, a decrease from $100.0 million, or $1.70 per diluted share, for the prior year. Selected performance metrics are as follows (refer to 鈥淪elected Quarterly Financial Data鈥� for additional information):

听

For the Three Months Ended,

听

For the Year Ended,

Performance Ratios (Quarterly Ratios Annualized):

December 31,

听

September 30,

听

December 31,

听

December 31,

听

December 31,

2024

听

2024

听

2023

听

2024

听

2023

Return on average assets

0.61

听

0.71

听

0.78

听

0.71

听

0.74

Return on average stockholders鈥� equity

4.88

听

5.68

听

6.41

听

5.70

听

6.13

听

Return on average tangible stockholders鈥� equity ^(a)

7.12

听

8.16

听

9.33

听

8.24

听

8.97

听

Return on average tangible common equity^(a)

7.47

听

8.57

听

9.81

听

8.65

听

9.44

听

Efficiency ratio

67.86

听

65.77

听

60.38

听

63.99

听

61.71

听

Net interest margin

2.69

听

2.67

听

2.82

听

2.72

听

3.02

听

_{^(a) Return on average tangible stockholders鈥� equity and return on average tangible common equity (鈥淩OTCE鈥�) are non-GAAP (鈥済enerally accepted accounting principles鈥�) financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders鈥� equity. ROTCE also excludes preferred stock from stockholders鈥� equity. Refer to 鈥淓xplanation of Non-GAAP Financial Measures,鈥� 鈥淪elected Quarterly Financial Data鈥� and 鈥淣on-GAAP Reconciliation鈥� tables for additional information regarding non-GAAP financial measures.}

Core earnings¹ for the quarter and year ended December 31, 2024 were $22.1 million and $93.6 million, respectively, or $0.38 and $1.60 per diluted share, a decrease from $26.3 million and $104.7 million, or $0.45 and $1.78 per diluted share, for the corresponding prior year periods, and a decrease from $23.2 million, or $0.39 per diluted share, for the prior linked quarter.

Core earnings PTPP¹ for the quarter and year ended December 31, 2024 were $29.6 million and $129.4 million, respectively, or $0.51 and $2.22 per diluted share, as compared to $37.9 million and $156.6 million, or $0.65 and $2.66 per diluted share, for the corresponding prior year periods, and $30.9 million, or $0.53 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:

听

For the Three Months Ended,

听

For the Year Ended,

听

December 31,

听

September 30,

听

December 31,

听

December 31,

听

December 31,

Core Ratios¹(Quarterly Ratios Annualized):

听

2024

听

2024

听

2023

听

2024

听

2023

听

Return on average assets

听

0.65

听

0.69

听

0.77

听

0.69

听

0.78

Return on average tangible stockholders鈥� equity

听

7.51

听

7.85

听

9.20

听

8.03

听

9.39

听

Return on average tangible common equity

听

7.89

听

8.24

听

9.67

听

8.43

听

9.89

听

Efficiency ratio

听

67.74

听

66.00

听

60.02

听

64.57

听

60.61

听

Core diluted earnings per share

0.38

听

0.39

听

0.45

听

1.60

听

1.78

听

Core PTPP diluted earnings per share

听

0.51

听

0.53

听

0.65

听

2.22

听

2.66

听

Key developments for the recent quarter are described below:

Margin Expansion: Net interest margin increased two basis points to 2.69% from 2.67% and net interest income increased by $1.1 million to $83.3 million. Excluding the impact of purchase accounting accretion and prepayment fees of 0.02% in the prior quarter, net interest margin expanded four basis points to 2.69% from 2.65%.
Loan Growth: Loan growth for the quarter was $95.9 million, or 4% annualized, reflecting a 20% increase in originations to $515.2 million. The loan pipeline remained strong at $306.7 million.
Deposit Growth: Total deposits were $10.1 billion for both the current and prior linked quarter. Excluding $126.3 million of brokered deposit run-off, deposits increased $76.5 million, or 3% annualized. Brokered deposits have decreased $556.8 million since December 31, 2023. Average cost of deposits for the quarter was 2.32%, with spot rates at December 31, 2024 continuing to decline across all deposit types.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company鈥檚 results, 鈥淲e are pleased to present our current quarter results, which reflects an inflection point in net interest income and margin, loan and deposit growth, and continued strong asset quality. The quarter includes the impact of our acquisition of a specialty finance company, which has complemented our existing product offerings.鈥� Mr. Maher added, 鈥淎s we turn to 2025, the Company remains focused on high quality growth while maintaining our expense and credit discipline.鈥�

The Company鈥檚 Board of Directors declared its 112th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on February听14, 2025 to common stockholders of record on February听3, 2025. The Company鈥檚 Board of Directors previously 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听17, 2025 to preferred stockholders of record on January听31, 2025.

^{鹿听Core earnings and core earnings before income taxes and provision for credit losses (鈥淧TPP or Pre-Tax-Pre-Provision鈥�), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (鈥淪pring Garden鈥�), the Federal Deposit Insurance Corporation (鈥淔DIC鈥�) special assessment, and the income tax effect of these items, (collectively referred to as 鈥渘on-core鈥� operations). PTPP excludes the aforementioned pre-tax 鈥渘on-core鈥� items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden provision). Refer to 鈥淓xplanation of Non-GAAP Financial Measures鈥� and the 鈥淣on-GAAP Reconciliation鈥� tables for additional information regarding non-GAAP financial measures.}

Results of Operations
The current quarter was favorably impacted by a continued mix-shift and repricing of funding costs, partly offset by a decrease in yields on interest-earning assets due to lower market interest rates. The current quarter results also include the acquisition of Spring Garden Capital Group, LLC (鈥淪pring Garden鈥�)², which the Company recognized a $1.4 million initial provision for credit losses through earnings. Additionally, the current quarter includes $768,000 of non-recurring death benefits on bank owned life insurance and income tax expense was positively impacted by utilization of tax credits.

^{虏听The acquisition of Spring Garden was effective October 1, 2024.}

Net Interest Income and Margin
Quarter ended December 31, 2024 vs. December 31, 2023

Net interest income decreased to $83.3 million, from $87.8 million, primarily reflecting the net impact of the rate environment. Net interest margin decreased to 2.69%, from 2.82%, which included the impact of purchase accounting accretion and prepayment fees of 0.05% in the prior period. Net interest margin decreased primarily due to the increase in cost of funds outpacing the yield on average interest earning assets.

Average interest-earning assets decreased by $17.7 million, due to a decrease in interest-earning cash deposits and net loans, largely offset by an increase in securities. The average yield for interest-earning assets remained relatively stable at 5.15%, from 5.16%.

The cost of average interest-bearing liabilities increased to 3.04%, from 2.91%, primarily due to higher cost of deposits, partially offset by lower cost of total borrowings. The total cost of deposits increased 10 basis points to 2.32%, from 2.22%. Average interest-bearing liabilities increased by $76.4 million, primarily due to an increase in total borrowings, partly offset by a decrease in total deposits.

Year ended December 31, 2024 vs. December 31, 2023

Net interest income decreased to $334.0 million, from $369.7 million, reflecting the net impact of the interest rate environment. Net interest margin decreased to 2.72%, from 3.02%, which included the impact of purchase accounting accretion and prepayment fees of 0.02% and 0.05% for the respective periods.

Average interest-earning assets increased by $29.8 million, primarily driven by redeployment of cash into securities, which grew by $179.0 million. The average yield increased to 5.23%, from 4.96%.

The total cost of average interest-bearing liabilities increased to 3.10%, from 2.45% primarily due to higher cost of deposits. The total cost of deposits increased to 2.36%, from 1.68%. Average interest-bearing liabilities increased by $212.2 million, primarily due to an increase in total deposits.

Quarter ended December 31, 2024 vs. September 30, 2024

Net interest income increased by $1.1 million and net interest margin increased to 2.69%, from 2.67%, which included the impact of purchase accounting accretion of 0.02% in the prior linked quarter.

Average interest-earning assets increased by $98.8 million, primarily due to increases in residential loans and securities. The yield on average interest-earning assets decreased to 5.15%, from 5.26% due to the lower market interest rate environment.

The total cost of average interest-bearing liabilities decreased to 3.04%, from 3.20%, primarily due to lower cost of deposits and Federal Home Loan Bank (鈥淔HLB鈥�) advances. The total cost of deposits decreased to 2.32%, from 2.44%. Average interest-bearing liabilities increased $112.8 million, primarily due to an increase in deposits and FHLB advances, partly offset by a decrease in other borrowings.

Provision for Credit Losses

Provision for credit losses for the quarter and year ended December 31, 2024, which included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden and the total provision for credit losses, was $3.5 million and $7.7 million, respectively, as compared to $3.2 million and $17.7 million for the corresponding prior year periods, and $517,000 in the prior linked quarter. The reserve build in the quarter was driven by the net change in downside macro-economic forecasts utilized in the estimate, partly offset by a decrease of $31.0 million, or 16%, in criticized and classified assets.

Net loan recoveries were $158,000 and net loan charge-offs were $1.6 million for the quarter and year ended December 31, 2024, respectively, as compared to net loan charge-offs of $35,000 and $8.4 million for the quarter and year ended December 31, 2023. Net loan recoveries were $88,000 in the prior linked quarter. The current and prior year included partial charge-offs of $1.6 million and $8.4 million, respectively, for a single commercial real estate relationship. Refer to 鈥淎sset Quality鈥� section for further discussion.

Non-interest Income
Quarter ended December 31, 2024 vs. December 31, 2023

Other income increased to $12.2 million, as compared to $11.9 million. Other income was favorably impacted by non-core operations of $2.2 million in the prior year, related to net gains on equity investments.

Excluding non-core operations, other income increased $2.6 million. The primary drivers were increases in income from bank owned life insurance of $1.1 million, related to non-recurring death benefits of $768,000 in the current year, fees and service charges of $892,000, primarily related to increased title fees, and net gain on sale of loans of $767,000.

Year ended December 31, 2024 vs. December 31, 2023

Other income increased to $50.2 million, as compared to $33.6 million. The current period was favorably impacted by non-core operations related to net gains on equity investments of $4.2 million and a $2.6 million gain on sale of a portion of the Company鈥檚 trust business. The prior year was adversely impacted by non-core operations of $4.4 million, primarily related to losses on sale of investments.

Excluding non-core operations, other income increased $5.3 million. The primary drivers were increases in the cash surrender value of bank owned life insurance of $2.6 million, which included one-time death benefits of $1.3听million, net gain on sale of loans of $1.9 million, and a non-recurring gain on sale of assets held for sale of $855,000. This was partially offset by a decrease in trust and asset management revenue of $784,000, related to the sale of a portion of the Company鈥檚 trust business.

Quarter ended December 31, 2024 vs. September 30, 2024

Other income in the prior quarter was $14.7 million, which included non-core operations of $1.4 million related to net gains on equity investments and $1.4 million related to gain on sale of a portion of the Company鈥檚 trust business. Excluding non-core operations, other income increased by $411,000. The primary drivers were increases in income from bank owned life insurance of $759,000 and net gain on sale of loans of $571,000, partly offset by a decrease in gain on sale of assets held for sale of $855,000, related to activity in the prior quarter.

Non-interest Expense
Quarter ended December 31, 2024 vs. December 31, 2023

Operating expenses increased to $64.8 million, as compared to $60.2 million. Operating expenses were adversely impacted by non-core items of $110,000 from the merger related expenses in the current year and $1.7 million from an FDIC special assessment in the prior year.

Excluding non-core operations, operating expenses increased by $6.2 million. The primary drivers were increases in compensation and benefits of $4.5 million, primarily due to the acquisitions during the year, and other operating expenses of $1.8 million, which was partly due to additional loan servicing expenses.

Year ended December 31, 2024 vs. December 31, 2023

Operating expenses decreased to $245.9 million, as compared to $248.9 million. Operating expenses in the current year were adversely impacted by $2.2 million of non-core operations of merger related expenses and FDIC special assessments, and in the prior year by $1.8 million for FDIC special assessments, merger related and net branch consolidation expenses.

Excluding non-core operations, operating expenses decreased by $3.5 million. This was due to a decrease in professional fees of $8.8 million as the Company realized benefits from the performance improvement initiatives and investments made in the prior year. This was partially offset by increases in other operating expense of $3.0 million, which was partly due to additional loan servicing expenses, and compensation and benefits of $2.5 million, primarily due to the acquisitions during the year.

Quarter ended December 31, 2024 vs. September 30, 2024

Operating expenses in the prior linked quarter were $63.7 million and were adversely impacted by non-core operations of $1.7 million related to merger related expenses. Excluding non-core operations, operating expenses increased by $2.7 million. The primary drivers were increases in compensation and benefits expense of $758,000 and data processing of $426,000, primarily related to acquisitions during the year. Additionally, there were increases in professional fees of $650,000 and other operating expense of $532,000, which was partly related to title costs.

Income Tax Expense

The provision for income taxes was $5.1 million and $30.3 million for the quarter and year ended December 31, 2024, respectively, as compared to $8.6 million and $32.7 million, for the same prior year periods, and $7.5 million for the prior linked quarter. The effective tax rate was 18.7% and 23.2% for the quarter and year ended December 31, 2024, respectively, as compared to 23.6% and 23.9% for the same prior year periods, and 22.9% for the prior linked quarter. The Company鈥檚 current quarter effective tax rate was positively impacted by utilization of higher tax credits as compared to the same prior year period and the year ended December 31, 2024 was adversely impacted by the non-recurring write-off of a deferred tax asset of $1.2 million net of other state effects and credits.

Financial Condition
December 31, 2024 vs. December 31, 2023

Total assets decreased by $117.0 million to $13.42 billion, from $13.54 billion, primarily due to decreases in loans and securities. Total loans decreased by $76.5 million to $10.12 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $126.6 million driven by loan payoffs, partly offset by an increase in residential loans of $70.2 million. The loan pipeline increased by $123.6 million to $306.7 million, from $183.0 million. Debt securities held-to-maturity decreased by $113.9 million to $1.05 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale increased by $73.6 million to $827.5 million, from $753.9 million, primarily due to new purchases. Goodwill increased by $17.2 million to $523.3 million, from $506.1 million due to the acquisition of Spring Garden.

Total liabilities decreased by $157.8 million to $11.72 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $368.6 million to $10.07 billion, from $10.43 billion, primarily due to decreases in time deposits of $364.5 million and high-yield savings accounts of $332.4 million, offset by increases in money market accounts of $279.4听million. Time deposits decreased by $364.5 million to $2.08 billion, from $2.45 billion, representing 20.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits, which decreased by $556.8听million, offset by increases in retail time deposits of $203.5听million. The loans-to-deposit ratio was 100.5%, as compared to 97.7%. FHLB advances increased by $224.0 million to $1.07 billion, from $848.6 million as a result of lower-cost funding availability.

Capital levels remain strong and in excess of 鈥渨ell-capitalized鈥� regulatory levels at December 31, 2024, including the Company鈥檚 estimated common equity tier one capital ratio, which increased to 11.2%, up approximately 30 basis points from December 31, 2023.

Total stockholders鈥� equity increased to $1.70 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. For the year ended December 31, 2024, the Company repurchased 1,383,238 shares totaling $21.5 million at a weighted average cost of $15.38. The Company had 1,551,200 shares available for repurchase under the authorized repurchase program at December 31, 2024. Additionally, accumulated other comprehensive loss decreased by $5.0 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company鈥檚 tangible common equity³ increased by $20.5 million to $1.11 billion. The Company鈥檚 stockholders鈥� equity to assets ratio was 12.69% at December 31, 2024, and tangible common equity to tangible assets ratio increased by 24 basis points during the quarter to 8.62%, primarily due to the drivers described above.

Book value per common share increased to $29.08, as compared to $27.96. Tangible book value per common share³ increased to $18.98, as compared to $18.35.

^{鲁 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鈥� equity and total assets. Refer to 鈥淓xplanation of Non-GAAP Financial Measures鈥� and the 鈥淣on-GAAP Reconciliation鈥� tables for additional information regarding non-GAAP financial measures.}

Asset Quality
December 31, 2024 vs. December 31, 2023

The Company鈥檚 non-performing loans increased to $35.5 million from $29.5 million, primarily due to acquired purchase credit deteriorated (鈥淧CD鈥�) loans from Spring Garden, and represented 0.35% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 207.19%, as compared to 227.21%. The level of 30 to 89 days delinquent loans increased to $36.6 million, from $19.2 million. Criticized and classified assets increased by $12.9 million to $159.9 million from $146.9 million. The Company鈥檚 allowance for loan credit losses was 0.73% of total loans as compared to 0.66%. Refer to 鈥淧rovision for Credit Losses鈥� section for further discussion.

The Company鈥檚 asset quality, excluding PCD loans, was as follows. Non-performing loans increased to $27.6 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 266.73%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, also excluding non-performing loans, increased to $33.6 million, from $17.7 million.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. The Company鈥檚 management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company鈥檚 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.

Annual Meeting

The Company also announced today that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. 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 24, 2025 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 688131. 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 651816, from one hour after the end of the call until February 21, 2025. The conference call will also be available (listen-only) by internet webcast at 听- in the Investor Relations section.

OceanFirst Financial Corp.鈥檚 subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.4 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia.听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 .

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 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥渨ill,鈥� 鈥渟hould,鈥� 鈥渕ay,鈥� 鈥渧iew,鈥� 鈥渙pportunity,鈥� 鈥減otential,鈥� or similar expressions or expressions of confidence. The Company鈥檚 ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company鈥檚 lending area, real estate market values in the Company鈥檚 lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company鈥檚 deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company鈥檚 market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company鈥檚 operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company鈥檚 rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank鈥檚 ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the 2023 Form 10-K, 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)
听	December 31, 2024		听	September 30, 2024		听	December 31, 2023
听	(Unaudited)		听	(Unaudited)		听	听
Assets	听		听	听		听	听
Cash and due from banks	$	123,615	听	$	214,171	听	$	153,718
Debt securities available-for-sale, at estimated fair value	听	827,500	听	听	911,753	听	听	753,892
Debt securities held-to-maturity, net of allowance for securities credit losses of $967 at December 31, 2024, $902 at September 30, 2024, and $1,133 at December 31, 2023 (estimated fair value of $952,917 at December 31, 2024, $1,007,781 at September 30, 2024, and $1,068,438 at December 31, 2023)	听	1,045,875	听	听	1,075,131	听	听	1,159,735
Equity investments	听	84,104	听	听	95,688	听	听	100,163
Restricted equity investments, at cost	听	108,634	听	听	98,545	听	听	93,766
Loans receivable, net of allowance for loan credit losses of $73,607 at December 31, 2024, $69,066 at September 30, 2024, and $67,137 at December 31, 2023	听	10,055,429	听	听	9,963,598	听	听	10,136,721
Loans held-for-sale	听	21,211	听	听	23,036	听	听	5,166
Interest and dividends receivable	听	45,914	听	听	48,821	听	听	51,874
Other real estate owned	听	1,811	听	听	鈥�	听	听	鈥�
Premises and equipment, net	听	115,256	听	听	116,087	听	听	121,372
Bank owned life insurance	听	270,208	听	听	269,138	听	听	266,498
Assets held for sale	听	鈥�	听	听	鈥�	听	听	28
Goodwill	听	523,308	听	听	506,146	听	听	506,146
Intangibles	听	12,680	听	听	7,056	听	听	9,513
Other assets	听	185,702	听	听	159,313	听	听	179,661
Total assets	$	13,421,247	听	$	13,488,483	听	$	13,538,253
Liabilities and Stockholders鈥� Equity	听		听	听		听	听
Deposits	$	10,066,342	听	$	10,116,167	听	$	10,434,949
Federal Home Loan Bank advances	听	1,072,611	听	听	891,860	听	听	848,636
Securities sold under agreements to repurchase with customers	听	60,567	听	听	81,163	听	听	73,148
Other borrowings	听	197,546	听	听	419,927	听	听	196,456
Advances by borrowers for taxes and insurance	听	23,031	听	听	27,282	听	听	22,407
Other liabilities	听	298,393	听	听	257,576	听	听	300,712
Total liabilities	听	11,718,490	听	听	11,793,975	听	听	11,876,308
Stockholders鈥� equity:	听		听	听		听	听
OceanFirst Financial Corp. stockholders鈥� equity	听	1,701,650	听	听	1,693,654	听	听	1,661,163
Non-controlling interest	听	1,107	听	听	854	听	听	782
Total stockholders鈥� equity	听	1,702,757	听	听	1,694,508	听	听	1,661,945
Total liabilities and stockholders鈥� equity	$	13,421,247	听	$	13,488,483	听	$	13,538,253

听听听听

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

听

For the Three Months Ended

听

For the Year Ended

听

December 31,

听

September 30,

听

December 31,

听

December 31,

听

2024

听

2024

听

2023

听

2024

听

2023

听

|--------------------- (Unaudited) ---------------------|

听

(Unaudited)

听

Interest income:

听

Loans

听

135,438

听

136,635

听

137,110

听

545,243

听

521,865

听

Debt securities

听

19,400

听

19,449

听

15,444

听

77,749

听

59,273

听

Equity investments and other

听

4,782

听

5,441

听

7,880

听

19,181

听

26,836

听

Total interest income

听

159,620

听

161,525

听

160,434

听

642,173

听

607,974

听

Interest expense:

听

Deposits

听

59,889

听

62,318

听

59,467

听

242,133

听

172,018

听

Borrowed funds

听

16,402

听

16,988

听

13,143

听

66,005

听

66,225

听

Total interest expense

听

76,291

听

79,306

听

72,610

听

308,138

听

238,243

听

Net interest income

听

83,329

听

82,219

听

87,824

听

334,035

听

369,731

听

Provision for credit losses

听

3,467

听

517

听

3,153

听

7,689

听

17,678

听

Net interest income after provision for credit losses

听

79,862

听

81,702

听

84,671

听

326,346

听

352,053

听

Other income:

听

Bankcard services revenue

听

1,595

听

1,615

听

1,531

听

6,197

听

5,912

听

Trust and asset management revenue

听

416

听

384

听

610

听

1,745

听

2,529

听

Fees and service charges

听

6,207

听

6,096

听

5,315

听

21,791

听

21,254

听

Net gain on sales of loans

听

1,076

听

505

听

309

听

2,358

听

428

听

Net (loss) gain on equity investments

听

)

听

1,420

听

2,176

听

4,225

听

(3,732

)

Net loss from other real estate operations

听

(20

)

听

鈥�

听

鈥�

听

(20

)

听

鈥�

听

Income from bank owned life insurance

听

2,538

听

1,779

听

1,427

听

7,905

听

5,280

听

Commercial loan swap income

听

414

听

879

听

741

听

Other

听

339

听

2,471

听

464

听

5,107

听

1,212

听

Total other income

听

12,232

听

14,684

听

11,861

听

50,187

听

33,624

听

Operating expenses:

听

Compensation and employee benefits

听

36,602

听

35,844

听

32,126

听

138,341

听

135,802

听

Occupancy

听

5,280

听

5,157

听

5,218

听

20,811

听

21,188

听

Equipment

听

1,026

听

1,026

听

1,172

听

4,250

听

4,650

听

Marketing

听

1,615

听

1,385

听

1,112

听

5,165

听

4,238

听

Federal deposit insurance and regulatory assessments

听

2,517

听

2,618

听

4,386

听

10,955

听

11,157

听

Data processing

听

6,366

听

5,940

听

6,430

听

24,280

听

24,835

听

Check card processing

听

1,134

听

1,153

听

991

听

4,412

听

4,640

听

Professional fees

听

2,620

听

1,970

听

2,858

听

9,483

听

18,297

听

Amortization of intangibles

听

876

听

803

听

976

听

3,333

听

3,984

听

Branch consolidation expense, net

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Merger related expenses

听

110

听

1,669

听

鈥�

听

1,779

听

Other operating expense

听

6,703

听

6,171

听

4,920

听

23,068

听

20,029

听

Total operating expenses

听

64,849

听

63,736

听

60,189

听

245,877

听

248,912

听

Income before provision for income taxes

听

27,245

听

32,650

听

36,343

听

130,656

听

136,765

听

Provision for income taxes

听

5,083

听

7,464

听

8,591

听

30,266

听

32,700

听

Net income

听

22,162

听

25,186

听

27,752

听

100,390

听

104,065

听

Net income attributable to non-controlling interest

听

253

听

325

听

Net income attributable to OceanFirst Financial Corp.

听

21,909

听

25,116

听

27,682

听

100,065

听

104,029

听

Dividends on preferred shares

听

1,004

听

1,004

听

1,004

听

4,016

听

4,016

听

Net income available to common stockholders

听

20,905

听

24,112

听

26,678

听

96,049

听

100,013

听

Basic earnings per share

听

0.36

听

0.42

听

0.46

听

1.65

听

1.70

听

Diluted earnings per share

听

0.36

听

0.42

听

0.46

听

1.65

听

1.70

听

Average basic shares outstanding

听

58,026

听

58,065

听

59,120

听

58,296

听

58,948

听

Average diluted shares outstanding

听

58,055

听

58,068

听

59,123

听

58,297

听

58,957

听

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

LOANS RECEIVABLE

听

December 31, 2024

听

September 30,听2024

听

June 30,听2024

听

March 31,听2024

听

December 31,听2023

Commercial:

听

Commercial real estate - investor

听

5,287,683

听

5,273,159

听

5,324,994

听

5,322,755

听

5,353,974

听

Commercial real estate - owner-occupied

听

902,219

听

841,930

听

857,710

听

914,582

听

943,891

听

Commercial and industrial

听

647,945

听

660,879

听

616,400

听

677,176

听

666,532

听

Total commercial

听

6,837,847

听

6,775,968

听

6,799,104

听

6,914,513

听

6,964,397

听

Consumer:

听

Residential real estate

听

3,049,763

听

3,003,213

听

2,977,698

听

2,965,276

听

2,979,534

听

Home equity loans and lines and other consumer (鈥渙ther consumer鈥�)

听

230,462

听

242,975

听

242,526

听

245,859

听

250,664

听

Total consumer

听

3,280,225

听

3,246,188

听

3,220,224

听

3,211,135

听

3,230,198

听

Total loans

听

10,118,072

听

10,022,156

听

10,019,328

听

10,125,648

听

10,194,595

听

Deferred origination costs (fees), net

听

10,964

听

10,508

听

10,628

听

9,734

听

9,263

听

Allowance for loan credit losses

听

(73,607

)

听

(69,066

)

听

(68,839

)

听

(67,173

)

听

(67,137

)

Loans receivable, net

听

10,055,429

听

9,963,598

听

9,961,117

听

10,068,209

听

10,136,721

听

Mortgage loans serviced for others

听

191,279

听

142,394

听

104,136

听

89,555

听

68,217

听

At December 31, 2024 Average Yield

听

Loan pipeline ⁽¹⁾:

听

Commercial

8.21

听

197,491

听

199,818

听

166,206

听

66,167

听

124,707

听

Residential real estate

6.69

听

97,385

听

137,978

听

80,330

听

57,340

听

49,499

听

Other consumer

8.60

听

11,783

听

13,788

听

12,586

听

13,030

听

8,819

听

Total

7.74

听

306,659

听

351,584

听

259,122

听

136,537

听

183,025

听

For the Three Months Ended

听

December 31,

听

September 30,

听

June 30,

听

March 31,

听

December 31,

听

2024

听

2024

听

2024

听

2024

听

2023

听

Average Yield

听

Loan originations:

听

Commercial

8.33

听

268,613

⁽²

⁾

245,886

听

56,053

听

123,010

听

94,294

Residential real estate

6.24

听

235,370

听

169,273

听

121,388

听

78,270

听

113,227

Other consumer

8.76

听

11,204

听

15,760

听

16,970

听

11,405

听

16,971

Total

7.38

听

515,187

听

430,919

听

194,411

听

212,685

听

224,492

Loans sold

听

127,508

听

65,296

听

45,045

听

29,965

听

20,138

_⁽¹⁾	_{Loan pipeline includes loans approved but not funded.}
^₍₂₎	_{Excludes commercial loan pool purchases of $76.1 million for the three months ended December 31, 2024.}

DEPOSITS

听

December 31, 2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Type of Account

听

Non-interest-bearing

听

1,617,182

听

1,638,447

听

1,632,521

听

1,639,828

听

1,657,119

Interest-bearing checking

听

4,000,553

听

3,896,348

听

3,667,837

听

3,865,699

听

3,911,766

Money market

听

1,301,197

听

1,288,555

听

1,210,312

听

1,150,979

听

1,021,805

Savings

听

1,066,438

听

1,071,946

听

1,115,688

听

1,260,309

听

1,398,837

Time deposits⁽¹⁾

听

2,080,972

听

2,220,871

听

2,367,659

听

2,320,036

听

2,445,422

Total deposits

听

10,066,342

听

10,116,167

听

9,994,017

听

10,236,851

听

10,434,949

_^(1)听

_{Includes brokered time deposits of $74.7听million, $201.0听million, $401.6听million, $543.4听million, and $631.5听million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively}

OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)

ASSET QUALITY⁽¹⁾

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Non-performing loans:

听

Commercial real estate - investor

17,000

听

12,478

听

19,761

听

21,507

听

20,820

听

Commercial real estate - owner-occupied

听

4,787

听

4,368

听

4,081

听

3,355

听

351

听

Commercial and industrial

听

122

听

434

听

567

听

304

听

Residential real estate

听

10,644

听

9,108

听

7,213

听

7,181

听

5,542

听

Other consumer

听

3,064

听

2,063

听

1,933

听

2,401

听

2,531

听

Total non-performing loans

35,527

听

28,139

听

33,422

听

35,011

听

29,548

听

Other real estate owned

听

1,811

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Total non-performing assets

37,338

听

28,139

听

33,422

听

35,011

听

29,548

听

Delinquent loans 30 to 89 days

36,550

听

15,458

听

9,655

听

17,534

听

19,202

听

Modifications to borrowers experiencing financial difficulty ⁽²⁾

听

Non-performing (included in total non-performing loans above)

8,483

听

8,409

听

8,677

听

9,075

听

6,420

听

Performing

听

33,524

听

26,655

听

27,184

听

15,619

听

15,361

听

Total modification to borrowers experiencing financial difficulty ⁽²⁾

42,007

听

35,064

听

35,861

听

24,694

听

21,781

听

Allowance for loan credit losses

73,607

听

69,066

听

68,839

听

67,173

听

67,137

听

Allowance for loan credit losses as a percent of total loans receivable ⁽³⁾

听

0.73

听

0.69

听

0.69

听

0.66

听

0.66

Allowance for loan credit losses as a percent of total non-performing loans ⁽³⁾

听

207.19

听

245.45

听

205.97

听

191.86

听

227.21

听

Non-performing loans as a percent of total loans receivable

听

0.35

听

0.28

听

0.33

听

0.35

听

0.29

听

Non-performing assets as a percent of total assets

听

0.28

听

0.21

听

0.25

听

0.26

听

0.22

听

Supplemental PCD and non-performing loans

听

PCD loans, net of allowance for loan credit losses

22,006

听

15,323

听

16,058

听

16,700

听

16,122

听

Non-performing PCD loans

听

7,931

听

2,887

听

2,841

听

3,525

听

3,183

听

Delinquent PCD and non-performing loans 30 to 89 days

听

2,997

听

1,279

听

1,188

听

2,088

听

1,516

听

PCD modifications to borrowers experiencing financial difficulty ⁽²⁾

听

738

听

760

听

759

听

764

听

771

听

Asset quality, excluding PCD loans ⁽⁴⁾

听

Non-performing loans

听

27,596

听

25,252

听

30,581

听

31,486

听

26,365

听

Non-performing assets

听

29,407

听

25,252

听

30,581

听

31,486

听

26,365

听

Delinquent loans 30 to 89 days (excludes non-performing loans)

听

33,553

听

14,179

听

8,467

听

15,446

听

17,686

听

Modification to borrowers experiencing financial difficulty ⁽²⁾

听

41,269

听

34,304

听

35,102

听

23,930

听

21,010

听

Allowance for loan credit losses as a percent of total non-performing loans ⁽³⁾

听

266.73

听

273.51

听

225.10

听

213.34

听

254.64

Non-performing loans as a percent of total loans receivable

听

0.27

听

0.25

听

0.31

听

0.31

听

0.26

听

Non-performing assets as a percent of total assets

听

0.22

听

0.19

听

0.23

听

0.23

听

0.19

听

_⁽¹⁾	_{The quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million, which had life-to-date charge-offs of $10.0 million.}
_⁽²⁾	_{Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.听}
_⁽³⁾	_{Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $6.0 million, $5.7 million, $6.1 million, $7.0 million, and $7.5 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.听听}
^₍₄₎	_{All balances and ratios exclude PCD loans.}

NET LOAN RECOVERIES (CHARGE-OFFS)

听

For the Three Months Ended

听

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Net loan recoveries (charge-offs):

听

Loan charge-offs ⁽¹⁾

听

(55

)

听

(124

)

听

(1,600

)

听

(441

)

听

(98

)

Recoveries on loans

听

213

听

212

听

148

听

Net loan recoveries (charge-offs)

听

158

听

(1,452

)

听

(349

)

听

(35

)

Net loan recoveries (charge-offs) to average total loans (annualized)

听

NM*

听

NM*

听

0.06

听

0.01

听

鈥�

Net loan recoveries (charge-offs) detail:

听

Commercial

听

129

听

(1,576

)

听

(35

)

听

Residential real estate

听

(17

)

听

)

听

Other consumer

听

(35

)

听

(380

)

听

(53

)

Net loan recoveries (charge-offs)

听

158

听

(1,452

)

听

(349

)

听

(35

)

_⁽¹⁾	_{The three months ended June 30, 2024 includes a charge-off related to a single commercial real estate relationship of $1.6 million.}
_{* Not meaningful as amounts are net loan recoveries.}

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME

听

For the Three Months Ended

听

December 31, 2024

听

September 30, 2024

听

December 31, 2023

(dollars in thousands)

Average
Balance

听

Interest

听

Average
Yield/
Cost ⁽¹⁾

听

Average
Balance

听

Interest

听

Average
Yield/
Cost ⁽¹⁾

听

Average
Balance

听

Interest

听

Average
Yield/
Cost ⁽¹⁾

Assets:

听

Interest-earning assets:

听

Interest-earning deposits and short-term investments

195,830

听

2,415

听

4.91

听

210,245

听

2,971

听

5.62

听

396,843

听

5,423

听

5.42

Securities ⁽²⁾

听

2,116,911

听

21,767

听

4.09

听

2,063,633

听

21,919

听

4.23

听

1,863,136

听

17,901

听

3.81

听

Loans receivable, net ⁽³⁾

听

Commercial

听

6,794,158

听

101,003

听

5.91

听

6,782,777

听

102,881

听

6.03

听

6,937,191

听

105,260

听

6.02

听

Residential real estate

听

3,049,092

听

30,455

听

4.00

听

2,992,138

听

29,677

听

3.97

听

2,957,671

听

27,934

听

3.78

听

Other consumer

听

236,161

听

3,980

听

6.70

听

242,942

听

4,077

听

6.68

听

250,300

听

3,916

听

6.21

听

Allowance for loan credit losses, net of deferred loan costs and fees

听

(60,669

)

听

鈥�

听

鈥�

听

(59,063

)

听

鈥�

听

鈥�

听

(56,001

)

听

鈥�

听

鈥�

听

Loans receivable, net

听

10,018,742

听

135,438

听

5.38

听

9,958,794

听

136,635

听

5.46

听

10,089,161

听

137,110

听

5.40

听

Total interest-earning assets

听

12,331,483

听

159,620

听

5.15

听

12,232,672

听

161,525

听

5.26

听

12,349,140

听

160,434

听

5.16

听

Non-interest-earning assets

听

1,213,569

听

1,206,024

听

1,243,967

听

Total assets

13,545,052

听

13,438,696

听

13,593,107

听

Liabilities and Stockholders' Equity:

听

Interest-bearing liabilities:

听

Interest-bearing checking

4,050,428

听

22,750

听

2.23

听

3,856,281

听

21,731

听

2.24

听

3,908,517

听

19,728

听

2.00

Money market

听

1,325,119

听

10,841

听

3.25

听

1,256,536

听

11,454

听

3.63

听

941,859

听

7,520

听

3.17

听

Savings

听

1,070,816

听

2,138

听

0.79

听

1,088,926

听

2,218

听

0.81

听

1,446,935

听

5,193

听

1.42

听

Time deposits

听

2,212,750

听

24,160

听

4.34

听

2,339,370

听

26,915

听

4.58

听

2,596,706

听

27,026

听

4.13

听

Total

听

8,659,113

听

59,889

听

2.75

听

8,541,113

听

62,318

听

2.90

听

8,894,017

听

59,467

听

2.65

听

FHLB advances

听

854,748

听

10,030

听

4.67

听

757,535

听

9,140

听

4.80

听

615,172

听

7,470

听

4.82

听

Securities sold under agreements to repurchase

听

76,856

听

513

听

2.66

听

75,871

听

491

听

2.57

听

80,181

听

387

听

1.91

听

Other borrowings

听

396,412

听

5,859

听

5.88

听

499,839

听

7,357

听

5.86

听

321,369

听

5,286

听

6.53

听

Total borrowings

听

1,328,016

听

16,402

听

4.91

听

1,333,245

听

16,988

听

5.07

听

1,016,722

听

13,143

听

5.13

听

Total interest-bearing liabilities

听

9,987,129

听

76,291

听

3.04

听

9,874,358

听

79,306

听

3.20

听

9,910,739

听

72,610

听

2.91

听

Non-interest-bearing deposits

听

1,627,376

听

1,634,743

听

1,739,499

听

Non-interest-bearing liabilities

听

227,221

听

240,560

听

292,170

听

Total liabilities

听

11,841,726

听

11,749,661

听

11,942,408

听

Stockholders鈥� equity

听

1,703,326

听

1,689,035

听

1,650,699

听

Total liabilities and equity

13,545,052

听

13,438,696

听

13,593,107

听

Net interest income

听

83,329

听

82,219

听

87,824

听

Net interest rate spread ⁽⁴⁾

听

2.11

听

2.06

听

2.25

Net interest margin ⁽⁵⁾

听

2.69

听

2.67

听

2.82

Total cost of deposits (including non-interest-bearing deposits)

听

2.32

听

2.44

听

2.22

听

For the Year Ended

听

December 31, 2024

听

December 31, 2023

(dollars in thousands)

听

Average
Balance

听

Interest

听

Average
Yield/
Cost

听

Average
Balance

听

Interest

听

Average
Yield/
Cost

Assets:

听

Interest-earning assets:

听

Interest-earning deposits and short-term investments

听

175,611

听

9,381

听

5.34

听

327,539

听

17,084

听

5.22

Securities ⁽²⁾

听

2,084,451

听

87,549

听

4.20

听

1,905,413

听

69,025

听

3.62

听

Loans receivable, net ⁽³⁾

听

Commercial

听

6,836,728

听

410,978

听

6.01

听

6,903,731

听

400,459

听

5.80

听

Residential real estate

听

2,998,732

听

117,747

听

3.93

听

2,911,246

听

105,796

听

3.63

听

Other consumer

听

243,360

听

16,518

听

6.79

听

255,359

听

15,610

听

6.11

听

Allowance for loan credit losses, net of deferred loan costs and fees

听

(59,289

)

听

鈥�

听

鈥�

听

(53,477

)

听

鈥�

听

鈥�

听

Loans receivable, net

听

10,019,531

听

545,243

听

5.44

听

10,016,859

听

521,865

听

5.21

听

Total interest-earning assets

听

12,279,593

听

642,173

听

5.23

听

12,249,811

听

607,974

听

4.96

听

Non-interest-earning assets

听

1,215,809

听

1,237,218

听

Total assets

听

13,495,402

听

13,487,029

听

Liabilities and Stockholders' Equity:

听

Interest-bearing liabilities:

听

Interest-bearing checking

听

3,923,846

听

86,320

听

2.20

听

3,795,502

听

52,898

听

1.39

Money market

听

1,214,690

听

41,948

听

3.45

听

794,387

听

18,656

听

2.35

听

Savings

听

1,169,424

听

11,422

听

0.98

听

1,364,333

听

9,227

听

0.68

听

Time deposits

听

2,325,638

听

102,443

听

4.40

听

2,440,829

听

91,237

听

3.74

听

Total

听

8,633,598

听

242,133

听

2.80

听

8,395,051

听

172,018

听

2.05

听

FHLB advances

听

742,575

听

35,686

听

4.81

听

944,219

听

46,000

听

4.87

听

Securities sold under agreements to repurchase

听

73,399

听

1,893

听

2.58

听

75,140

听

931

听

1.24

听

Other borrowings

听

484,406

听

28,426

听

5.87

听

307,368

听

19,294

听

6.28

听

Total borrowings

听

1,300,380

听

66,005

听

5.08

听

1,326,727

听

66,225

听

4.99

听

Total interest-bearing liabilities

听

9,933,978

听

308,138

听

3.10

听

9,721,778

听

238,243

听

2.45

听

Non-interest-bearing deposits

听

1,630,719

听

1,869,735

听

Non-interest-bearing liabilities

听

245,680

听

262,883

听

Total liabilities

听

11,810,377

听

11,854,396

听

Stockholders鈥� equity

听

1,685,025

听

1,632,633

听

Total liabilities and equity

听

13,495,402

听

13,487,029

听

Net interest income

听

334,035

听

369,731

听

Net interest rate spread ⁽⁴⁾

听

2.13

听

2.51

Net interest margin ⁽⁵⁾

听

2.72

听

3.02

Total cost of deposits (including non-interest-bearing deposits)

听

2.36

听

1.68

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

听

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Selected Financial Condition Data:

听

Total assets

听

13,421,247

听

13,488,483

听

13,321,755

听

13,418,978

听

13,538,253

Debt securities available-for-sale, at estimated fair value

听

827,500

听

911,753

听

721,484

听

744,944

听

753,892

Debt securities held-to-maturity, net of allowance for securities credit losses

听

1,045,875

听

1,075,131

听

1,105,843

听

1,128,666

听

1,159,735

Equity investments

听

84,104

听

95,688

听

104,132

听

103,201

听

100,163

Restricted equity investments, at cost

听

108,634

听

98,545

听

92,679

听

85,689

听

93,766

Loans receivable, net of allowance for loan credit losses

听

10,055,429

听

9,963,598

听

9,961,117

听

10,068,209

听

10,136,721

Deposits

听

10,066,342

听

10,116,167

听

9,994,017

听

10,236,851

听

10,434,949

Federal Home Loan Bank advances

听

1,072,611

听

891,860

听

789,337

听

658,436

听

848,636

Securities sold under agreements to repurchase and other borrowings

听

258,113

听

501,090

听

504,490

听

492,520

听

269,604

Total stockholders鈥� equity

听

1,702,757

听

1,694,508

听

1,676,669

听

1,665,837

听

1,661,945

听

For the Three Months Ended

听

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Selected Operating Data:

听

Interest income

听

159,620

听

161,525

听

159,426

听

161,602

听

160,434

Interest expense

听

76,291

听

79,306

听

77,163

听

75,378

听

72,610

Net interest income

听

83,329

听

82,219

听

82,263

听

86,224

听

87,824

Provision for credit losses (excluding Spring Garden)

听

2,041

听

517

听

3,114

听

591

听

3,153

Spring Garden opening provision for credit losses

听

1,426

听

鈥�

听

鈥�

听

鈥�

听

鈥�

Net interest income after provision for credit losses

听

79,862

听

81,702

听

79,149

听

85,633

听

84,671

Other income (excluding equity investments and sale of trust)

听

12,237

听

11,826

听

10,098

听

9,201

听

9,685

Net (loss) gain on equity investments

听

)

听

1,420

听

887

听

1,923

听

2,176

Net gain on sale of trust business

听

鈥�

听

1,438

听

鈥�

听

1,162

听

鈥�

Operating expenses (excluding FDIC special assessment and merger related expenses)

听

64,739

听

62,067

听

58,620

听

58,254

听

58,526

FDIC special assessment

听

鈥�

听

鈥�

听

鈥�

听

418

听

1,663

Merger related expenses

听

110

听

1,669

听

鈥�

听

鈥�

听

鈥�

Income before provision for income taxes

听

27,245

听

32,650

听

31,514

听

39,247

听

36,343

Provision for income taxes

听

5,083

听

7,464

听

7,082

听

10,637

听

8,591

Net income

听

22,162

听

25,186

听

24,432

听

28,610

听

27,752

Net income (loss) attributable to non-controlling interest

听

253

听

(57

)

听

Net income attributable to OceanFirst Financial Corp.

听

21,909

听

25,116

听

24,373

听

28,667

听

27,682

Net income available to common stockholders

听

20,905

听

24,112

听

23,369

听

27,663

听

26,678

Diluted earnings per share

听

0.36

听

0.42

听

0.40

听

0.47

听

0.46

Net accretion/amortization of purchase accounting adjustments included in net interest income

听

741

听

1,086

听

921

听

1,604

听

At or For the Three Months Ended

听

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Selected Financial Ratios and Other Data ^{(1) (2)}:

听

Performance Ratios (Annualized):

听

Return on average assets ⁽³⁾

听

0.61

听

0.71

听

0.70

听

0.82

听

0.78

Return on average tangible assets^{(3) (4)}

听

0.64

听

0.74

听

0.73

听

0.85

听

0.81

听

Return on average stockholders' equity ⁽³⁾

听

4.88

听

5.68

听

5.61

听

6.65

听

6.41

听

Return on average tangible stockholders' equity ^{(3) (4)}

听

7.12

听

8.16

听

8.10

听

9.61

听

9.33

听

Return on average tangible common equity ^{(3) (4)}

听

7.47

听

8.57

听

8.51

听

10.09

听

9.81

听

Stockholders' equity to total assets

听

12.69

听

12.56

听

12.59

听

12.41

听

12.28

听

Tangible stockholders' equity to tangible assets ⁽⁴⁾

听

9.06

听

9.10

听

9.08

听

8.92

听

8.80

听

Tangible common equity to tangible assets ⁽⁴⁾

听

8.62

听

8.68

听

8.64

听

8.49

听

8.38

听

Net interest rate spread

听

2.11

听

2.06

听

2.11

听

2.23

听

2.25

听

Net interest margin

听

2.69

听

2.67

听

2.71

听

2.81

听

2.82

听

Operating expenses to average assets

听

1.90

听

1.89

听

1.75

听

1.74

听

1.76

听

Efficiency ratio ⁽⁵⁾

听

67.86

听

65.77

听

62.86

听

59.56

听

60.38

听

Loans-to-deposits

听

100.50

听

99.10

听

100.30

听

98.90

听

97.70

听

听	听	At or For the Year Ended December 31,
听	听	2024		听	2023
Performance Ratios:	听	听		听	听
Return on average assets ⁽³⁾	听	0.71	%	听	0.74	%
Return on average tangible assets^{(3) (4)}	听	0.74	听	听	0.77	听
Return on average stockholders' equity ⁽³⁾	听	5.70	听	听	6.13	听
Return on average tangible stockholders' equity ^{(3) (4)}	听	8.24	听	听	8.97	听
Return on average tangible common equity ^{(3) (4)}	听	8.65	听	听	9.44	听
Net interest rate spread	听	2.13	听	听	2.51	听
Net interest margin	听	2.72	听	听	3.02	听
Operating expenses to average assets	听	1.82	听	听	1.85	听
Efficiency ratio ⁽⁵⁾	听	63.99	听	听	61.71	听

听

At or For the Three Months Ended

听

December 31,

听

September 30,

听

June 30,

听

March 31,

听

December 31,

听

2024

听

2024

听

2024

听

2024

听

2023

听

Trust and Asset Management:

听

Wealth assets under administration and management (鈥淎UA/M鈥�)

听

147,956

听

152,797

听

150,519

听

236,891

听

335,769

听

Nest Egg AUA/M

听

431,434

听

430,413

听

403,647

听

407,478

听

401,420

听

Total AUA/M

听

579,390

听

583,210

听

554,166

听

644,369

听

737,189

听

Per Share Data:

听

Cash dividends per common share

听

0.20

听

0.20

听

0.20

听

0.20

听

0.20

听

Book value per common share at end of period

听

29.08

听

29.02

听

28.67

听

28.32

听

27.96

听

Tangible book value per common share at end of period ⁽⁴⁾

听

18.98

听

19.28

听

18.93

听

18.63

听

18.35

听

Common shares outstanding at end of period

听

58,554,871

听

58,397,094

听

58,481,418

听

58,812,498

听

59,447,684

听

Preferred shares outstanding at end of period

听

57,370

听

57,370

听

57,370

听

57,370

听

57,370

听

Number of full-service customer facilities:

听

Quarterly Average Balances

听

Total securities

听

2,116,911

听

2,063,633

听

2,058,711

听

2,098,421

听

1,863,136

听

Loans receivable, net

听

10,018,742

听

9,958,794

听

10,012,491

听

10,088,771

听

10,089,161

听

Total interest-earning assets

听

12,331,483

听

12,232,672

听

12,203,776

听

12,350,384

听

12,349,140

听

Total goodwill and intangibles

听

534,942

听

513,731

听

514,535

听

515,356

听

516,289

听

Total assets

听

13,545,052

听

13,438,696

听

13,441,218

听

13,556,720

听

13,593,107

听

Time deposits

听

2,212,750

听

2,339,370

听

2,337,458

听

2,414,063

听

2,596,706

听

Total deposits (including non-interest-bearing deposits)

听

10,286,489

听

10,175,856

听

10,173,315

听

10,422,332

听

10,633,516

听

Total borrowings

听

1,328,016

听

1,333,245

听

1,325,372

听

1,214,219

听

1,016,722

听

Total interest-bearing liabilities

听

9,987,129

听

9,874,358

听

9,872,522

听

10,001,968

听

9,910,739

听

Non-interest bearing deposits

听

1,627,376

听

1,634,743

听

1,626,165

听

1,634,583

听

1,739,499

听

Stockholders鈥� equity

听

1,703,326

听

1,689,035

听

1,674,453

听

1,673,040

听

1,650,699

听

Tangible stockholders鈥� equity ⁽⁴⁾

听

1,168,384

听

1,175,304

听

1,159,918

听

1,157,684

听

1,134,410

听

Quarterly Yields and Costs

听

Total securities

听

4.09

听

4.23

听

4.22

听

4.27

听

3.81

Loans receivable, net

听

5.38

听

5.46

听

5.46

听

5.46

听

5.40

听

Total interest-earning assets

听

5.15

听

5.26

听

5.25

听

5.26

听

5.16

听

Time deposits

听

4.34

听

4.58

听

4.46

听

4.24

听

4.13

听

Total cost of deposits (including non-interest-bearing deposits)

听

2.32

听

2.44

听

2.37

听

2.31

听

2.22

听

Total borrowed funds

听

4.91

听

5.07

听

5.19

听

5.14

听

5.13

听

Total interest-bearing liabilities

听

3.04

听

3.20

听

3.14

听

3.03

听

2.91

听

Net interest spread

听

2.11

听

2.06

听

2.11

听

2.23

听

2.25

听

Net interest margin

听

2.69

听

2.67

听

2.71

听

2.81

听

2.82

听

_⁽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 鈥淣on-GAAP Reconciliation.鈥澨�}
_⁽³⁾	_{Ratios for each period are based on net income available to common stockholders.}
_⁽⁴⁾	_{Tangible stockholders鈥� equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as 鈥渢angible book value鈥�) excludes goodwill, intangibles and preferred equity. Refer to 鈥淣on-GAAP Reconciliation.鈥�}
_⁽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

听

For the Three Months Ended

听

December 31,
2024

听

September 30,
2024

听

June 30,
2024

听

March 31,
2024

听

December 31,
2023

Core Earnings:

听

Net income available to common stockholders (GAAP)

听

20,905

听

24,112

听

23,369

听

27,663

听

26,678

听

(Less) add non-recurring and non-core items:

听

Spring Garden opening provision for credit losses

听

1,426

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Net loss (gain) on equity investments

听

(1,420

)

听

(887

)

听

(1,923

)

听

(2,176

)

Net gain on sale of trust business

听

鈥�

听

(1,438

)

听

鈥�

听

(1,162

)

听

鈥�

听

FDIC special assessment

听

鈥�

听

鈥�

听

鈥�

听

418

听

1,663

听

Merger related expenses

听

110

听

1,669

听

鈥�

听

鈥�

听

鈥�

听

Income tax (benefit) expense on items

听

(388

)

听

270

听

188

听

642

听

129

听

Core earnings (Non-GAAP)

听

22,058

听

23,193

听

22,670

听

25,638

听

26,294

听

Income tax expense

听

5,083

听

7,464

听

7,082

听

10,637

听

8,591

听

Provision for credit losses

听

3,467

听

517

听

3,114

听

591

听

3,153

听

Less: non-core provision for credit losses

听

1,426

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Less: income tax (benefit) expense on non-core items

听

(388

)

听

270

听

188

听

642

听

129

听

Core earnings PTPP (Non-GAAP)

听

29,570

听

30,904

听

32,678

听

36,224

听

37,909

听

Core diluted earnings per share

听

0.38

听

0.39

听

0.39

听

0.44

听

0.45

听

Core earnings PTPP diluted earnings per share

听

0.51

听

0.53

听

0.56

听

0.62

听

0.65

听

Core Ratios (Annualized):

听

Return on average assets

听

0.65

听

0.69

听

0.68

听

0.76

听

0.77

Return on average tangible stockholders鈥� equity

听

7.51

听

7.85

听

7.86

听

8.91

听

9.20

听

Return on average tangible common equity

听

7.89

听

8.24

听

8.26

听

9.36

听

9.67

听

Efficiency ratio

听

67.74

听

66.00

听

63.47

听

61.05

听

60.02

听

听	听	For the Years Ended December 31,
听	听	听	2024	听	听	听	2023	听
Core Earnings:	听	听			听	听
Net income available to common stockholders (GAAP)	听	$	96,049	听	听	$	100,013	听
(Less) add non-recurring and non-core items:	听	听			听	听
Spring Garden opening provision for credit losses	听	听	1,426	听	听	听	鈥�	听
Net gain on equity investments⁽¹⁾	听	听	(4,225	)	听	听	(876	)
Net loss on sale of investments ⁽¹⁾	听	听	鈥�	听	听	听	5,305	听
Net gain on sale of trust business	听	听	(2,600	)	听	听	鈥�	听
FDIC special assessment	听	听	418	听	听	听	1,663	听
Merger related expenses	听	听	1,779	听	听	听	22	听
Branch consolidation expense, net	听	听	鈥�	听	听	听	70	听
Income tax expense (benefit) on items	听	听	712	听	听	听	(1,479	)
Core earnings (Non-GAAP)	听	$	93,559	听	听	$	104,718	听
Income tax expense	听	$	30,266	听	听	$	32,700	听
Provision for credit losses	听	听	7,689	听	听	听	17,678	听
Less: non-core provision for credit losses	听	听	1,426	听	听	听	鈥�	听
Less: income tax expense (benefit) on non-core items	听	听	712	听	听	听	(1,479	)
Core earnings PTPP (Non-GAAP)	听	$	129,376	听	听	$	156,575	听
Core diluted earnings per share	听	$	1.60	听	听	$	1.78	听
Core earnings PTPP diluted earnings per share	听	$	2.22	听	听	$	2.66	听
听	听	听			听	听
Core Ratios:	听	听			听	听
Return on average assets	听	听	0.69	%	听	听	0.78	%
Return on average tangible stockholders鈥� equity	听	听	8.03	听	听	听	9.39	听
Return on average tangible common equity	听	听	8.43	听	听	听	9.89	听
Efficiency ratio	听	听	64.57	听	听	听	60.61	听

_⁽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.}

听

December 31,

听

September 30,

听

June 30,

听

March 31,

听

December 31,

听

2024

听

2024

听

2024

听

2024

听

2023

听

Tangible Equity:

听

Total stockholders' equity

听

1,702,757

听

1,694,508

听

1,676,669

听

1,665,837

听

1,661,945

听

Less:

听

Goodwill

听

523,308

听

506,146

听

506,146

听

506,146

听

506,146

听

Intangibles

听

12,680

听

7,056

听

7,859

听

8,669

听

9,513

听

Tangible stockholders鈥� equity

听

1,166,769

听

1,181,306

听

1,162,664

听

1,151,022

听

1,146,286

听

Less:

听

Preferred stock

听

55,527

听

55,527

听

55,527

听

55,527

听

55,527

听

Tangible common equity

听

1,111,242

听

1,125,779

听

1,107,137

听

1,095,495

听

1,090,759

听

Tangible Assets:

听

Total assets

听

13,421,247

听

13,488,483

听

13,321,755

听

13,418,978

听

13,538,253

听

Less:

听

Goodwill

听

523,308

听

506,146

听

506,146

听

506,146

听

506,146

听

Intangibles

听

12,680

听

7,056

听

7,859

听

8,669

听

9,513

听

Tangible assets

听

12,885,259

听

12,975,281

听

12,807,750

听

12,904,163

听

13,022,594

听

Tangible stockholders' equity to tangible assets

听

9.06

听

9.10

听

9.08

听

8.92

听

8.80

Tangible common equity to tangible assets

听

8.62

听

8.68

听

8.64

听

8.49

听

8.38

Company Contact:

Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: [email protected]

FAQ

What was OCFC's net income for Q4 2024?

OceanFirst Financial Corp. reported net income of $20.9 million ($0.36 per diluted share) for Q4 2024.

How much did OCFC's loan portfolio grow in Q4 2024?

OCFC's loan portfolio grew by $95.9 million, representing a 4% annualized growth rate in Q4 2024.

What is OCFC's quarterly dividend payment for Q4 2024?

OCFC declared a quarterly cash dividend of $0.20 per share, payable on February 14, 2025.

What was OCFC's net interest margin in Q4 2024?

OCFC's net interest margin increased to 2.69% in Q4 2024, up from 2.67% in the previous quarter.

How did OCFC's full-year 2024 performance compare to 2023?

OCFC's full-year net income decreased to $96.0 million ($1.65 per share) in 2024 from $100.0 million ($1.70 per share) in 2023.

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OceanFirst Financial Corp.听Announces Quarterly and Annual Financial Results

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FAQ

What was OCFC's net income for Q4 2024?

How much did OCFC's loan portfolio grow in Q4 2024?

What is OCFC's quarterly dividend payment for Q4 2024?

What was OCFC's net interest margin in Q4 2024?

How did OCFC's full-year 2024 performance compare to 2023?

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OceanFirst Financial Corp.听Announces Quarterly and Annual Financial Results

Insights

Financial Analyst neutral

FAQ

What was OCFC's net income for Q4 2024?

How much did OCFC's loan portfolio grow in Q4 2024?

What is OCFC's quarterly dividend payment for Q4 2024?

What was OCFC's net interest margin in Q4 2024?

How did OCFC's full-year 2024 performance compare to 2023?

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