OceanFirst Financial Corp. Announces Quarterly and Annual Financial Results

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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:“OCFC”) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), 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 “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,
Performance Ratios (Quarterly Ratios Annualized):	2024		2024		2023		2024		2023
Return on average assets	0.61	%	0.71	%	0.78	%	0.71	%	0.74	%
Return on average stockholders’ equity	4.88		5.68		6.41		5.70		6.13
Return on average tangible stockholders’ equity ^(a)	7.12		8.16		9.33		8.24		8.97
Return on average tangible common equity^(a)	7.47		8.57		9.81		8.65		9.44
Efficiency ratio	67.86		65.77		60.38		63.99		61.71
Net interest margin	2.69		2.67		2.82		2.72		3.02

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

Core earnings¹ for the 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:

	For the Three Months Ended,									For the Year Ended,
	December 31,			September 30,			December 31,			December 31,			December 31,
Core Ratios¹(Quarterly Ratios Annualized):		2024			2024			2023			2024			2023
Return on average assets		0.65	%		0.69	%		0.77	%		0.69	%		0.78	%
Return on average tangible stockholders’ equity		7.51			7.85			9.20			8.03			9.39
Return on average tangible common equity		7.89			8.24			9.67			8.43			9.89
Efficiency ratio		67.74			66.00			60.02			64.57			60.61
Core diluted earnings per share	$	0.38		$	0.39		$	0.45		$	1.60		$	1.78
Core PTPP diluted earnings per share		0.51			0.53			0.65			2.22			2.66

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’s results, “We 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.” Mr. Maher added, “As we turn to 2025, the Company remains focused on high quality growth while maintaining our expense and credit discipline.”

The Company’s 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 14, 2025 to common stockholders of record on February 3, 2025. The Company’s 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 17, 2025 to preferred stockholders of record on January 31, 2025.

^{¹ Core earnings and core earnings before income taxes and provision for credit losses (“PTPP or Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net 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 (“Spring Garden”), the 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 (exclusive of the Spring Garden provision). 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 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 (“Spring Garden”)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.

^{² 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 (“FHLB”) 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 “Asset Quality” 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’s 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 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’s 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’s 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’s 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 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 million, offset by increases in retail time deposits of $203.5 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 “well-capitalized” regulatory levels at December 31, 2024, including the Company’s estimated common equity tier one capital ratio, which increased to 11.2%, up approximately 30 basis points from December 31, 2023.

Total stockholders’ 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’s tangible common equity³ increased by $20.5 million to $1.11 billion. The Company’s stockholders’ 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.

^{³ Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}

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

The Company’s non-performing loans increased to $35.5 million from $29.5 million, primarily due to acquired purchase credit deteriorated (“PCD”) 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’s allowance for loan credit losses was 0.73% of total loans as compared to 0.66%. Refer to “Provision for Credit Losses” section for further discussion.

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

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 www.oceanfirst.com - in the Investor Relations section.

OceanFirst Financial Corp.’s 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. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies 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’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company’s rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the 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)
	December 31, 2024		September 30, 2024		December 31, 2023
	(Unaudited)		(Unaudited)
Assets
Cash and due from banks	$	123,615	$	214,171	$	153,718
Debt securities available-for-sale, at estimated fair value		827,500		911,753		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)		1,045,875		1,075,131		1,159,735
Equity investments		84,104		95,688		100,163
Restricted equity investments, at cost		108,634		98,545		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		10,055,429		9,963,598		10,136,721
Loans held-for-sale		21,211		23,036		5,166
Interest and dividends receivable		45,914		48,821		51,874
Other real estate owned		1,811		—		—
Premises and equipment, net		115,256		116,087		121,372
Bank owned life insurance		270,208		269,138		266,498
Assets held for sale		—		—		28
Goodwill		523,308		506,146		506,146
Intangibles		12,680		7,056		9,513
Other assets		185,702		159,313		179,661
Total assets	$	13,421,247	$	13,488,483	$	13,538,253
Liabilities and Stockholders’ Equity
Deposits	$	10,066,342	$	10,116,167	$	10,434,949
Federal Home Loan Bank advances		1,072,611		891,860		848,636
Securities sold under agreements to repurchase with customers		60,567		81,163		73,148
Other borrowings		197,546		419,927		196,456
Advances by borrowers for taxes and insurance		23,031		27,282		22,407
Other liabilities		298,393		257,576		300,712
Total liabilities		11,718,490		11,793,975		11,876,308
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity		1,701,650		1,693,654		1,661,163
Non-controlling interest		1,107		854		782
Total stockholders’ equity		1,702,757		1,694,508		1,661,945
Total liabilities and stockholders’ equity	$	13,421,247	$	13,488,483	$	13,538,253

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,
		2024			2024		2023		2024			2023
	\|--------------------- (Unaudited) ---------------------\|							(Unaudited)
Interest income:
Loans	$	135,438		$	136,635	$	137,110	$	545,243		$	521,865
Debt securities		19,400			19,449		15,444		77,749			59,273
Equity investments and other		4,782			5,441		7,880		19,181			26,836
Total interest income		159,620			161,525		160,434		642,173			607,974
Interest expense:
Deposits		59,889			62,318		59,467		242,133			172,018
Borrowed funds		16,402			16,988		13,143		66,005			66,225
Total interest expense		76,291			79,306		72,610		308,138			238,243
Net interest income		83,329			82,219		87,824		334,035			369,731
Provision for credit losses		3,467			517		3,153		7,689			17,678
Net interest income after provision for credit losses		79,862			81,702		84,671		326,346			352,053
Other income:
Bankcard services revenue		1,595			1,615		1,531		6,197			5,912
Trust and asset management revenue		416			384		610		1,745			2,529
Fees and service charges		6,207			6,096		5,315		21,791			21,254
Net gain on sales of loans		1,076			505		309		2,358			428
Net (loss) gain on equity investments		(5	)		1,420		2,176		4,225			(3,732	)
Net loss from other real estate operations		(20	)		—		—		(20	)		—
Income from bank owned life insurance		2,538			1,779		1,427		7,905			5,280
Commercial loan swap income		86			414		29		879			741
Other		339			2,471		464		5,107			1,212
Total other income		12,232			14,684		11,861		50,187			33,624
Operating expenses:
Compensation and employee benefits		36,602			35,844		32,126		138,341			135,802
Occupancy		5,280			5,157		5,218		20,811			21,188
Equipment		1,026			1,026		1,172		4,250			4,650
Marketing		1,615			1,385		1,112		5,165			4,238
Federal deposit insurance and regulatory assessments		2,517			2,618		4,386		10,955			11,157
Data processing		6,366			5,940		6,430		24,280			24,835
Check card processing		1,134			1,153		991		4,412			4,640
Professional fees		2,620			1,970		2,858		9,483			18,297
Amortization of intangibles		876			803		976		3,333			3,984
Branch consolidation expense, net		—			—		—		—			70
Merger related expenses		110			1,669		—		1,779			22
Other operating expense		6,703			6,171		4,920		23,068			20,029
Total operating expenses		64,849			63,736		60,189		245,877			248,912
Income before provision for income taxes		27,245			32,650		36,343		130,656			136,765
Provision for income taxes		5,083			7,464		8,591		30,266			32,700
Net income		22,162			25,186		27,752		100,390			104,065
Net income attributable to non-controlling interest		253			70		70		325			36
Net income attributable to OceanFirst Financial Corp.		21,909			25,116		27,682		100,065			104,029
Dividends on preferred shares		1,004			1,004		1,004		4,016			4,016
Net income available to common stockholders	$	20,905		$	24,112	$	26,678	$	96,049		$	100,013
Basic earnings per share	$	0.36		$	0.42	$	0.46	$	1.65		$	1.70
Diluted earnings per share	$	0.36		$	0.42	$	0.46	$	1.65		$	1.70
Average basic shares outstanding		58,026			58,065		59,120		58,296			58,948
Average diluted shares outstanding		58,055			58,068		59,123		58,297			58,957

OceanFirst Financial Corp. SELECTED LOAN AND DEPOSIT DATA (dollars in thousands)
LOANS RECEIVABLE			At
			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Commercial:
Commercial real estate - investor			$	5,287,683		$	5,273,159		$	5,324,994		$	5,322,755		$	5,353,974
Commercial real estate - owner-occupied				902,219			841,930			857,710			914,582			943,891
Commercial and industrial				647,945			660,879			616,400			677,176			666,532
Total commercial				6,837,847			6,775,968			6,799,104			6,914,513			6,964,397
Consumer:
Residential real estate				3,049,763			3,003,213			2,977,698			2,965,276			2,979,534
Home equity loans and lines and other consumer (“other consumer”)				230,462			242,975			242,526			245,859			250,664
Total consumer				3,280,225			3,246,188			3,220,224			3,211,135			3,230,198
Total loans				10,118,072			10,022,156			10,019,328			10,125,648			10,194,595
Deferred origination costs (fees), net				10,964			10,508			10,628			9,734			9,263
Allowance for loan credit losses				(73,607	)		(69,066	)		(68,839	)		(67,173	)		(67,137	)
Loans receivable, net			$	10,055,429		$	9,963,598		$	9,961,117		$	10,068,209		$	10,136,721
Mortgage loans serviced for others			$	191,279		$	142,394		$	104,136		$	89,555		$	68,217
	At December 31, 2024 Average Yield
Loan pipeline ⁽¹⁾:
Commercial	8.21	%	$	197,491		$	199,818		$	166,206		$	66,167		$	124,707
Residential real estate	6.69			97,385			137,978			80,330			57,340			49,499
Other consumer	8.60			11,783			13,788			12,586			13,030			8,819
Total	7.74	%	$	306,659		$	351,584		$	259,122		$	136,537		$	183,025

	For the Three Months Ended
	December 31,						September 30,		June 30,		March 31,		December 31,
	2024						2024		2024		2024		2023
	Average Yield
Loan originations:
Commercial	8.33	%	$	268,613	⁽²	⁾	$	245,886	$	56,053	$	123,010	$	94,294
Residential real estate	6.24			235,370				169,273		121,388		78,270		113,227
Other consumer	8.76			11,204				15,760		16,970		11,405		16,971
Total	7.38	%	$	515,187			$	430,919	$	194,411	$	212,685	$	224,492
Loans sold			$	127,508			$	65,296	$	45,045	$	29,965	$	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	At
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Type of Account
Non-interest-bearing	$	1,617,182	$	1,638,447	$	1,632,521	$	1,639,828	$	1,657,119
Interest-bearing checking		4,000,553		3,896,348		3,667,837		3,865,699		3,911,766
Money market		1,301,197		1,288,555		1,210,312		1,150,979		1,021,805
Savings		1,066,438		1,071,946		1,115,688		1,260,309		1,398,837
Time deposits⁽¹⁾		2,080,972		2,220,871		2,367,659		2,320,036		2,445,422
Total deposits	$	10,066,342	$	10,116,167	$	9,994,017	$	10,236,851	$	10,434,949

_⁽¹⁾	_{Includes brokered time deposits of $74.7 million, $201.0 million, $401.6 million, $543.4 million, and $631.5 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			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Non-performing loans:
Commercial real estate - investor	$	17,000		$	12,478		$	19,761		$	21,507		$	20,820
Commercial real estate - owner-occupied		4,787			4,368			4,081			3,355			351
Commercial and industrial		32			122			434			567			304
Residential real estate		10,644			9,108			7,213			7,181			5,542
Other consumer		3,064			2,063			1,933			2,401			2,531
Total non-performing loans	$	35,527		$	28,139		$	33,422		$	35,011		$	29,548
Other real estate owned		1,811			—			—			—			—
Total non-performing assets	$	37,338		$	28,139		$	33,422		$	35,011		$	29,548
Delinquent loans 30 to 89 days	$	36,550		$	15,458		$	9,655		$	17,534		$	19,202
Modifications to borrowers experiencing financial difficulty ⁽²⁾
Non-performing (included in total non-performing loans above)	$	8,483		$	8,409		$	8,677		$	9,075		$	6,420
Performing		33,524			26,655			27,184			15,619			15,361
Total modification to borrowers experiencing financial difficulty ⁽²⁾	$	42,007		$	35,064		$	35,861		$	24,694		$	21,781
Allowance for loan credit losses	$	73,607		$	69,066		$	68,839		$	67,173		$	67,137
Allowance for loan credit losses as a percent of total loans receivable ⁽³⁾		0.73	%		0.69	%		0.69	%		0.66	%		0.66	%
Allowance for loan credit losses as a percent of total non-performing loans ⁽³⁾		207.19			245.45			205.97			191.86			227.21
Non-performing loans as a percent of total loans receivable		0.35			0.28			0.33			0.35			0.29
Non-performing assets as a percent of total assets		0.28			0.21			0.25			0.26			0.22
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	22,006		$	15,323		$	16,058		$	16,700		$	16,122
Non-performing PCD loans		7,931			2,887			2,841			3,525			3,183
Delinquent PCD and non-performing loans 30 to 89 days		2,997			1,279			1,188			2,088			1,516
PCD modifications to borrowers experiencing financial difficulty ⁽²⁾		738			760			759			764			771
Asset quality, excluding PCD loans ⁽⁴⁾
Non-performing loans		27,596			25,252			30,581			31,486			26,365
Non-performing assets		29,407			25,252			30,581			31,486			26,365
Delinquent loans 30 to 89 days (excludes non-performing loans)		33,553			14,179			8,467			15,446			17,686
Modification to borrowers experiencing financial difficulty ⁽²⁾		41,269			34,304			35,102			23,930			21,010
Allowance for loan credit losses as a percent of total non-performing loans ⁽³⁾		266.73	%		273.51	%		225.10	%		213.34	%		254.64	%
Non-performing loans as a percent of total loans receivable		0.27			0.25			0.31			0.31			0.26
Non-performing assets as a percent of total assets		0.22			0.19			0.23			0.23			0.19

_⁽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.}
_⁽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.}
^₍₄₎	_{All balances and ratios exclude PCD loans.}

NET LOAN RECOVERIES (CHARGE-OFFS)	For the Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Net loan recoveries (charge-offs):
Loan charge-offs ⁽¹⁾	$	(55	)	$	(124	)	$	(1,600	)	$	(441	)	$	(98	)
Recoveries on loans		213			212			148			92			63
Net loan recoveries (charge-offs)	$	158		$	88		$	(1,452	)	$	(349	)	$	(35	)
Net loan recoveries (charge-offs) to average total loans (annualized)	NM*			NM*				0.06	%		0.01	%		—	%
Net loan recoveries (charge-offs) detail:
Commercial	$	92		$	129		$	(1,576	)	$	(35	)	$	9
Residential real estate		(17	)		(6	)		87			66			9
Other consumer		83			(35	)		37			(380	)		(53	)
Net loan recoveries (charge-offs)	$	158		$	88		$	(1,452	)	$	(349	)	$	(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
	For the Three Months Ended
	December 31, 2024							September 30, 2024							December 31, 2023
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	195,830		$	2,415	4.91	%	$	210,245		$	2,971	5.62	%	$	396,843		$	5,423	5.42	%
Securities ⁽²⁾		2,116,911			21,767	4.09			2,063,633			21,919	4.23			1,863,136			17,901	3.81
Loans receivable, net ⁽³⁾
Commercial		6,794,158			101,003	5.91			6,782,777			102,881	6.03			6,937,191			105,260	6.02
Residential real estate		3,049,092			30,455	4.00			2,992,138			29,677	3.97			2,957,671			27,934	3.78
Other consumer		236,161			3,980	6.70			242,942			4,077	6.68			250,300			3,916	6.21
Allowance for loan credit losses, net of deferred loan costs and fees		(60,669	)		—	—			(59,063	)		—	—			(56,001	)		—	—
Loans receivable, net		10,018,742			135,438	5.38			9,958,794			136,635	5.46			10,089,161			137,110	5.40
Total interest-earning assets		12,331,483			159,620	5.15			12,232,672			161,525	5.26			12,349,140			160,434	5.16
Non-interest-earning assets		1,213,569							1,206,024							1,243,967
Total assets	$	13,545,052						$	13,438,696						$	13,593,107
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	4,050,428			22,750	2.23	%	$	3,856,281			21,731	2.24	%	$	3,908,517			19,728	2.00	%
Money market		1,325,119			10,841	3.25			1,256,536			11,454	3.63			941,859			7,520	3.17
Savings		1,070,816			2,138	0.79			1,088,926			2,218	0.81			1,446,935			5,193	1.42
Time deposits		2,212,750			24,160	4.34			2,339,370			26,915	4.58			2,596,706			27,026	4.13
Total		8,659,113			59,889	2.75			8,541,113			62,318	2.90			8,894,017			59,467	2.65
FHLB advances		854,748			10,030	4.67			757,535			9,140	4.80			615,172			7,470	4.82
Securities sold under agreements to repurchase		76,856			513	2.66			75,871			491	2.57			80,181			387	1.91
Other borrowings		396,412			5,859	5.88			499,839			7,357	5.86			321,369			5,286	6.53
Total borrowings		1,328,016			16,402	4.91			1,333,245			16,988	5.07			1,016,722			13,143	5.13
Total interest-bearing liabilities		9,987,129			76,291	3.04			9,874,358			79,306	3.20			9,910,739			72,610	2.91
Non-interest-bearing deposits		1,627,376							1,634,743							1,739,499
Non-interest-bearing liabilities		227,221							240,560							292,170
Total liabilities		11,841,726							11,749,661							11,942,408
Stockholders’ equity		1,703,326							1,689,035							1,650,699
Total liabilities and equity	$	13,545,052						$	13,438,696						$	13,593,107
Net interest income				$	83,329						$	82,219						$	87,824
Net interest rate spread ⁽⁴⁾						2.11	%						2.06	%						2.25	%
Net interest margin ⁽⁵⁾						2.69	%						2.67	%						2.82	%
Total cost of deposits (including non-interest-bearing deposits)						2.32	%						2.44	%						2.22	%

	For the Year Ended
	December 31, 2024							December 31, 2023
(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	$	175,611		$	9,381	5.34	%	$	327,539		$	17,084	5.22	%
Securities ⁽²⁾		2,084,451			87,549	4.20			1,905,413			69,025	3.62
Loans receivable, net ⁽³⁾
Commercial		6,836,728			410,978	6.01			6,903,731			400,459	5.80
Residential real estate		2,998,732			117,747	3.93			2,911,246			105,796	3.63
Other consumer		243,360			16,518	6.79			255,359			15,610	6.11
Allowance for loan credit losses, net of deferred loan costs and fees		(59,289	)		—	—			(53,477	)		—	—
Loans receivable, net		10,019,531			545,243	5.44			10,016,859			521,865	5.21
Total interest-earning assets		12,279,593			642,173	5.23			12,249,811			607,974	4.96
Non-interest-earning assets		1,215,809							1,237,218
Total assets	$	13,495,402						$	13,487,029
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,923,846			86,320	2.20	%	$	3,795,502			52,898	1.39	%
Money market		1,214,690			41,948	3.45			794,387			18,656	2.35
Savings		1,169,424			11,422	0.98			1,364,333			9,227	0.68
Time deposits		2,325,638			102,443	4.40			2,440,829			91,237	3.74
Total		8,633,598			242,133	2.80			8,395,051			172,018	2.05
FHLB advances		742,575			35,686	4.81			944,219			46,000	4.87
Securities sold under agreements to repurchase		73,399			1,893	2.58			75,140			931	1.24
Other borrowings		484,406			28,426	5.87			307,368			19,294	6.28
Total borrowings		1,300,380			66,005	5.08			1,326,727			66,225	4.99
Total interest-bearing liabilities		9,933,978			308,138	3.10			9,721,778			238,243	2.45
Non-interest-bearing deposits		1,630,719							1,869,735
Non-interest-bearing liabilities		245,680							262,883
Total liabilities		11,810,377							11,854,396
Stockholders’ equity		1,685,025							1,632,633
Total liabilities and equity	$	13,495,402						$	13,487,029
Net interest income				$	334,035						$	369,731
Net interest rate spread ⁽⁴⁾						2.13	%						2.51	%
Net interest margin ⁽⁵⁾						2.72	%						3.02	%
Total cost of deposits (including non-interest-bearing deposits)						2.36	%						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⁾	_{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, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Selected Financial Condition Data:
Total assets	$	13,421,247	$	13,488,483	$	13,321,755	$	13,418,978	$	13,538,253
Debt securities available-for-sale, at estimated fair value		827,500		911,753		721,484		744,944		753,892
Debt securities held-to-maturity, net of allowance for securities credit losses		1,045,875		1,075,131		1,105,843		1,128,666		1,159,735
Equity investments		84,104		95,688		104,132		103,201		100,163
Restricted equity investments, at cost		108,634		98,545		92,679		85,689		93,766
Loans receivable, net of allowance for loan credit losses		10,055,429		9,963,598		9,961,117		10,068,209		10,136,721
Deposits		10,066,342		10,116,167		9,994,017		10,236,851		10,434,949
Federal Home Loan Bank advances		1,072,611		891,860		789,337		658,436		848,636
Securities sold under agreements to repurchase and other borrowings		258,113		501,090		504,490		492,520		269,604
Total stockholders’ equity		1,702,757		1,694,508		1,676,669		1,665,837		1,661,945

	For the Three Months Ended
	December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024			December 31, 2023
Selected Operating Data:
Interest income	$	159,620		$	161,525	$	159,426	$	161,602		$	160,434
Interest expense		76,291			79,306		77,163		75,378			72,610
Net interest income		83,329			82,219		82,263		86,224			87,824
Provision for credit losses (excluding Spring Garden)		2,041			517		3,114		591			3,153
Spring Garden opening provision for credit losses		1,426			—		—		—			—
Net interest income after provision for credit losses		79,862			81,702		79,149		85,633			84,671
Other income (excluding equity investments and sale of trust)		12,237			11,826		10,098		9,201			9,685
Net (loss) gain on equity investments		(5	)		1,420		887		1,923			2,176
Net gain on sale of trust business		—			1,438		—		1,162			—
Operating expenses (excluding FDIC special assessment and merger related expenses)		64,739			62,067		58,620		58,254			58,526
FDIC special assessment		—			—		—		418			1,663
Merger related expenses		110			1,669		—		—			—
Income before provision for income taxes		27,245			32,650		31,514		39,247			36,343
Provision for income taxes		5,083			7,464		7,082		10,637			8,591
Net income		22,162			25,186		24,432		28,610			27,752
Net income (loss) attributable to non-controlling interest		253			70		59		(57	)		70
Net income attributable to OceanFirst Financial Corp.	$	21,909		$	25,116	$	24,373	$	28,667		$	27,682
Net income available to common stockholders	$	20,905		$	24,112	$	23,369	$	27,663		$	26,678
Diluted earnings per share	$	0.36		$	0.42	$	0.40	$	0.47		$	0.46
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	20		$	741	$	1,086	$	921		$	1,604

	At or For the Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Selected Financial Ratios and Other Data ^{(1) (2)}:
Performance Ratios (Annualized):
Return on average assets ⁽³⁾	0.61	%	0.71	%	0.70	%	0.82	%	0.78	%
Return on average tangible assets^{(3) (4)}	0.64		0.74		0.73		0.85		0.81
Return on average stockholders' equity ⁽³⁾	4.88		5.68		5.61		6.65		6.41
Return on average tangible stockholders' equity ^{(3) (4)}	7.12		8.16		8.10		9.61		9.33
Return on average tangible common equity ^{(3) (4)}	7.47		8.57		8.51		10.09		9.81
Stockholders' equity to total assets	12.69		12.56		12.59		12.41		12.28
Tangible stockholders' equity to tangible assets ⁽⁴⁾	9.06		9.10		9.08		8.92		8.80
Tangible common equity to tangible assets ⁽⁴⁾	8.62		8.68		8.64		8.49		8.38
Net interest rate spread	2.11		2.06		2.11		2.23		2.25
Net interest margin	2.69		2.67		2.71		2.81		2.82
Operating expenses to average assets	1.90		1.89		1.75		1.74		1.76
Efficiency ratio ⁽⁵⁾	67.86		65.77		62.86		59.56		60.38
Loans-to-deposits	100.50		99.10		100.30		98.90		97.70

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

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
		2024			2024			2024			2024			2023
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	147,956		$	152,797		$	150,519		$	236,891		$	335,769
Nest Egg AUA/M		431,434			430,413			403,647			407,478			401,420
Total AUA/M		579,390			583,210			554,166			644,369			737,189
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		29.08			29.02			28.67			28.32			27.96
Tangible book value per common share at end of period ⁽⁴⁾		18.98			19.28			18.93			18.63			18.35
Common shares outstanding at end of period		58,554,871			58,397,094			58,481,418			58,812,498			59,447,684
Preferred shares outstanding at end of period		57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:		39			39			39			39			39
Quarterly Average Balances
Total securities	$	2,116,911		$	2,063,633		$	2,058,711		$	2,098,421		$	1,863,136
Loans receivable, net		10,018,742			9,958,794			10,012,491			10,088,771			10,089,161
Total interest-earning assets		12,331,483			12,232,672			12,203,776			12,350,384			12,349,140
Total goodwill and intangibles		534,942			513,731			514,535			515,356			516,289
Total assets		13,545,052			13,438,696			13,441,218			13,556,720			13,593,107
Time deposits		2,212,750			2,339,370			2,337,458			2,414,063			2,596,706
Total deposits (including non-interest-bearing deposits)		10,286,489			10,175,856			10,173,315			10,422,332			10,633,516
Total borrowings		1,328,016			1,333,245			1,325,372			1,214,219			1,016,722
Total interest-bearing liabilities		9,987,129			9,874,358			9,872,522			10,001,968			9,910,739
Non-interest bearing deposits		1,627,376			1,634,743			1,626,165			1,634,583			1,739,499
Stockholders’ equity		1,703,326			1,689,035			1,674,453			1,673,040			1,650,699
Tangible stockholders’ equity ⁽⁴⁾		1,168,384			1,175,304			1,159,918			1,157,684			1,134,410
Quarterly Yields and Costs
Total securities		4.09	%		4.23	%		4.22	%		4.27	%		3.81	%
Loans receivable, net		5.38			5.46			5.46			5.46			5.40
Total interest-earning assets		5.15			5.26			5.25			5.26			5.16
Time deposits		4.34			4.58			4.46			4.24			4.13
Total cost of deposits (including non-interest-bearing deposits)		2.32			2.44			2.37			2.31			2.22
Total borrowed funds		4.91			5.07			5.19			5.14			5.13
Total interest-bearing liabilities		3.04			3.20			3.14			3.03			2.91
Net interest spread		2.11			2.06			2.11			2.23			2.25
Net interest margin		2.69			2.67			2.71			2.81			2.82

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

OceanFirst Financial Corp. OTHER ITEMS (dollars in thousands, except per share amounts)
NON-GAAP RECONCILIATION
	For the Three Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Core Earnings:
Net income available to common stockholders (GAAP)	$	20,905		$	24,112		$	23,369		$	27,663		$	26,678
(Less) add non-recurring and non-core items:
Spring Garden opening provision for credit losses		1,426			—			—			—			—
Net loss (gain) on equity investments		5			(1,420	)		(887	)		(1,923	)		(2,176	)
Net gain on sale of trust business		—			(1,438	)		—			(1,162	)		—
FDIC special assessment		—			—			—			418			1,663
Merger related expenses		110			1,669			—			—			—
Income tax (benefit) expense on items		(388	)		270			188			642			129
Core earnings (Non-GAAP)	$	22,058		$	23,193		$	22,670		$	25,638		$	26,294
Income tax expense	$	5,083		$	7,464		$	7,082		$	10,637		$	8,591
Provision for credit losses		3,467			517			3,114			591			3,153
Less: non-core provision for credit losses		1,426			—			—			—			—
Less: income tax (benefit) expense on non-core items		(388	)		270			188			642			129
Core earnings PTPP (Non-GAAP)	$	29,570		$	30,904		$	32,678		$	36,224		$	37,909
Core diluted earnings per share	$	0.38		$	0.39		$	0.39		$	0.44		$	0.45
Core earnings PTPP diluted earnings per share	$	0.51		$	0.53		$	0.56		$	0.62		$	0.65

Core Ratios (Annualized):
Return on average assets		0.65	%		0.69	%		0.68	%		0.76	%		0.77	%
Return on average tangible stockholders’ equity		7.51			7.85			7.86			8.91			9.20
Return on average tangible common equity		7.89			8.24			8.26			9.36			9.67
Efficiency ratio		67.74			66.00			63.47			61.05			60.02

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

Core Ratios:
Return on average assets		0.69	%		0.78	%
Return on average tangible stockholders’ equity		8.03			9.39
Return on average tangible common equity		8.43			9.89
Efficiency ratio		64.57			60.61

_⁽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.}

	December 31,			September 30,			June 30,			March 31,			December 31,
		2024			2024			2024			2024			2023
Tangible Equity:
Total stockholders' equity	$	1,702,757		$	1,694,508		$	1,676,669		$	1,665,837		$	1,661,945
Less:
Goodwill		523,308			506,146			506,146			506,146			506,146
Intangibles		12,680			7,056			7,859			8,669			9,513
Tangible stockholders’ equity		1,166,769			1,181,306			1,162,664			1,151,022			1,146,286
Less:
Preferred stock		55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,111,242		$	1,125,779		$	1,107,137		$	1,095,495		$	1,090,759

Tangible Assets:
Total assets	$	13,421,247		$	13,488,483		$	13,321,755		$	13,418,978		$	13,538,253
Less:
Goodwill		523,308			506,146			506,146			506,146			506,146
Intangibles		12,680			7,056			7,859			8,669			9,513
Tangible assets	$	12,885,259		$	12,975,281		$	12,807,750		$	12,904,163		$	13,022,594

Tangible stockholders' equity to tangible assets		9.06	%		9.10	%		9.08	%		8.92	%		8.80	%
Tangible common equity to tangible assets		8.62	%		8.68	%		8.64	%		8.49	%		8.38	%

Company Contact:

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

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.

OceanFirst Financial Corp. Announces Quarterly and Annual Financial Results

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