Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 20, 2023

OCEANFIRST FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware

001-11713

22-3412577

(State or other jurisdiction of
incorporation or organization)

(Commission
File No.)

(IRS Employer
Identification No.)

110 West Front Street, Red Bank, New Jersey 07701

(Address of principal executive offices, including zip code)

(732)240-4500

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange in which registered

Common stock, $0.01 par value per share

OCFC

NASDAQ

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

OCFCP

NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 20, 2023, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2023. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01 REGULATION FD DISCLOSURE

The Company is scheduled to make presentations to current and prospective investors after July 20, 2023. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which OceanFirst Financial Corp. will make available at these presentations and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed “filed” for any purpose.

ITEM 8.01OTHER EVENTS

In the press release described in Item 2.02, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.4375 per share for every depositary share, representing 1/40th interest in the Series A Preferred Stock, payable on August 15, 2023 to stockholders of record on July 31, 2023.

In the press release described in Item 2.02, the Company announced that the Board of Directors declared a regular quarterly cash dividend on the Company’s outstanding common stock. The cash dividend will be in the amount of $0.20 per share and will be payable on August 18, 2023 to the stockholders of record at the close of business on August 7, 2023.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS


(d)	EXHIBITS

99.1	Press Release dated	July 20, 2023
99.2	Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after July 20, 2023.

SIGNATURES

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


		OCEANFIRST FINANCIAL CORP.

Dated:	July 20, 2023	/s/ Patrick S. Barrett
		Patrick S. Barrett
		Executive Vice President and Chief Financial Officer


						Press Release

Exhibit 99.1

Company Contact:

Patrick S. Barrett

Chief Financial Officer

OceanFirst Financial Corp.

Tel: (732) 240-4500, ext. 7507

Email: pbarrett@oceanfirst.com

FOR IMMEDIATE RELEASE

OCEANFIRST FINANCIAL CORP.

ANNOUNCES SECOND QUARTER

FINANCIAL RESULTS

RED BANK, NEW JERSEY, July 20, 2023 - OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $26.8 million, or $0.45 per diluted share, for the three months ended June 30, 2023, as compared to $28.0 million, or $0.47 per diluted share, for the corresponding prior year period, and $26.9 million, or $0.46 per diluted share, for the prior linked quarter. For the six months ended June 30, 2023, the Company reported net income available to common stockholders of $53.7 million, or $0.91 per diluted share, as compared to $52.7 million, or $0.89 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):


	For the Three Months Ended,						For the Six Months Ended,
Performance Ratios (Annualized):	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
Return on average assets	0.80	%	0.82	%	0.92	%	0.81	%	0.88	%
Return on average stockholders’ equity	6.61		6.77		7.31		6.69		6.94
Return on average tangible stockholders’ equity (a)	9.70		10.00		11.08		9.84		10.52
Return on average tangible common equity (a)	10.21		10.53		11.72		10.37		11.13
Efficiency ratio	62.28		60.78		59.65		61.53		60.68
Net interest margin	3.02		3.34		3.29		3.17		3.24

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

Core earnings1 for the three and six months ended June 30, 2023 were $27.2 million and $59.9 million, respectively, or $0.46 and $1.01 per diluted share, representing a decrease from $34.6 million and $63.4 million, or $0.59 and $1.08 per diluted share, for the corresponding prior year periods, and a decrease from $32.7 million, or $0.55 per diluted share, for the prior linked quarter.

Core earnings PTPP1 for the three and six months ended June 30, 2023 were $37.6 million and $83.7 million, respectively, or $0.64 and $1.42 per diluted share, as compared to $47.0 million and $86.7 million, or $0.80 and $1.47 per diluted share, for the corresponding prior year periods, and $46.1 million, or $0.78 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:


	For the Three Months Ended,									For the Six Months Ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
Core Ratios1 (Annualized):	2023			2023			2022			2023			2022
Return on average assets	0.81		%	1.00		%	1.13		%	0.90		%	1.06		%
Return on average tangible stockholders’ equity	9.84			12.15			13.73			10.98			12.65
Return on average tangible common equity	10.36			12.80			14.53			11.56			13.38
Efficiency ratio	61.94			56.49			54.43			59.13			55.89
Core diluted earnings per share	$	0.46		$	0.55		$	0.59		$	1.01		$	1.08
Core PTPP diluted earnings per share	0.64			0.78			0.80			1.42			1.47

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

Key developments for the recent quarter are described below:

•Excess Liquidity: The Company maintained elevated levels of on-balance sheet cash and funding availability, which represented 260% of adjusted uninsured deposits2 at June 30, 2023. Deposits increased $165.2 million during the quarter, which included a shift from non-maturity deposits to time deposits.

•Asset Quality: Continued strong asset quality as criticized assets, non-performing loans, and loans 30 to 89 days past due as a percent of total loans receivable were 1.18%, 0.23%, and 0.03%, respectively, at June 30, 2023. Net charge-off activity continues to remain at zero percent of total average loans on an annualized basis.

•Strong Capital: Capital ratios remained above “well-capitalized” levels, including the Company’s common equity tier 1 capital, which increased 19 bps from the prior quarter, to 10.21% at June 30, 2023. Book value and tangible book value per share were $27.37 and $17.723, respectively, both up $0.30 from the prior quarter.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our current quarter results were impacted by continued prudent balance sheet measures to increase liquidity, preserve our deposits, and continue supporting our existing banking relationships. We are optimistic that the pace of margin compression is behind us, but the outlook is uncertain should rates and competition remain elevated for longer. Although profitability decreased, our credit quality remains stellar, we grew capital, and remain well positioned to manage through any market uncertainty.” Mr. Maher added, “Our strong balance sheet will serve as a catalyst for our strategic initiatives and investments to improve our operating expenses. These initiatives are anticipated to improve performance as early as the fourth quarter and should enhance returns in future periods.”

2 For additional information, refer to Earnings Release Supplement furnished as Exhibit 99.2 to Form 8-K filed with the SEC on July 20, 2023.

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

The Company’s Board of Directors declared its 106th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 18, 2023 to common stockholders of record on August 7, 2023. The Board 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 August 15, 2023 to preferred stockholders of record on July 31, 2023.

Results of Operations

The current quarter results were impacted by the following matters. Net interest income and cost of funds were adversely impacted by shifts to higher cost time deposits, repricing of government deposits, and maintaining excess liquidity on balance sheet, which outpaced the increase in interest-earning assets, driving an increase in deposit betas to 29%4. Total operating expenses included $580,000 of real estate charges on assets held for sale and $400,000 of talent acquisition retainers, which are not expected to reoccur.

Net Interest Income and Margin

Three Months Ended June 30, 2023 vs. June 30, 2022

Net interest income increased to $92.1 million, from $90.8 million, reflecting a net impact of higher interest rates and to a lesser extent, an increase in average interest-earning assets.

Net interest margin decreased to 3.02% from 3.29%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.17% for the respective three months, net interest margin decreased to 2.97% from 3.12%. Net interest margin decreased primarily due to the

4 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021).

increase in cost of funds outpacing that of average interest earning assets in the current interest rate environment.

Average interest-earning assets increased by $1.17 billion for the three months, primarily driven by organic commercial loan growth, which increased $634.2 million. The average yield for interest-earning assets increased to 4.91% from 3.60%.

The cost of average interest-bearing liabilities increased to 2.41%, from 0.42% due to higher cost of deposits noted above and higher cost Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits (including non-interest bearing deposits) increased to 1.52% from 0.18%.

Six months ended June 30, 2023 vs. June 30, 2022

Net interest income increased to $190.9 million, from $175.0 million, reflecting a net impact of higher interest rates and to a lesser extent, an increase in average interest-earning assets.

Net interest margin decreased to 3.17% from 3.24%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.15% for the respective six months, net interest margin increased to 3.13% from 3.09%.

Average interest-earning assets increased by $1.22 billion. The cost of average interest-bearing liabilities increased to 2.10% from 0.39%. The total cost of deposits (including non-interest bearing deposits) increased to 1.21% from 0.17%.

Three Months Ended June 30, 2023 vs. March 31, 2023

Net interest income decreased by $6.7 million, reflecting a decrease in net interest margin to 3.02%, from 3.34%, as the increase in cost of funds outpaced the increase of average interest earning assets. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.04% for the respective three months, net interest margin decreased to 2.97%, from 3.30%. The compression in net interest margin was primarily attributable to higher cost of deposits noted above, a mix-shift to higher cost time deposits, and the impact of excess on-balance sheet liquidity built in the prior quarter.

Average interest-earning assets increased by $240.0 million, primarily due to maintaining excess liquidity during the quarter and, to a lesser extent, commercial loan growth. The yield on average interest-earning assets increased to 4.91%, from 4.68%. The total cost of average interest-bearing liabilities increased to 2.41%, from 1.76%, and the total cost of deposits (including non-interest bearing deposits) increased to 1.52% from 0.88%, primarily due to higher cost of deposits and a mix-shift to higher cost time deposits.

Provision for Credit Losses

Provision for credit losses for the three and six months ended June 30, 2023 was $1.2 million and $4.2 million, respectively, as compared to $1.3 million and $3.1 million for the corresponding prior year periods, and $3.0 million in the prior linked quarter. The provision for credit losses for the current quarter reflected an increase to the allowance for loan credit losses, primarily related to commercial real estate, which was driven by sustained macroeconomic headwinds.

Net loan charge-offs were $123,000 and $76,000 for the three and six months ended June 30, 2023, respectively. Net loan charge-offs were $9,000 and net loan recoveries were $83,000 for the three and six months ended June 30, 2022, respectively. Net loan recoveries were $47,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.

Non-interest Income

Three Months Ended June 30, 2023 vs. June 30, 2022

Other income increased to $8.9 million, as compared to $7.5 million. Other income was adversely impacted by non-core operations of $559,000 and $8.1 million, for the respective quarters, primarily related to net losses on preferred stock equity investments.

Excluding non-core operations, other income decreased $6.1 million. The primary drivers were decreases in commercial loan swap income of $2.3 million and fees and service charges of $2.0 million, which were adversely impacted by the current interest rate environment resulting in lower swap volume

and mortgage activity. Bankcard services revenue decreased $1.8 million due to the Durbin amendment, which became effective for the Company on July 1, 2022.

Six months ended June 30, 2023 vs. June 30, 2022

Other income decreased to $11.0 million, as compared to $16.4 million. Other income was adversely impacted by non-core operations of $8.1 million and $10.9 million, for the respective periods, primarily related to net losses on preferred stock equity investments. The current year’s non-core operations also included $5.3 million of losses related to the sale of investments in the first quarter.

Excluding non-core operations, other income decreased $8.2 million. The primary drivers were decreases in commercial loan swap income on lower volume of $4.4 million, bankcard services revenue of $3.4 million, and income from bank owned life insurance of $1.1 million on lower claims.

Three Months Ended June 30, 2023 vs. March 31, 2023

Other income in the prior linked quarter included non-core operations of $7.5 million primarily related to net losses on preferred stock equity investments. Excluding non-core operations, other income decreased by $84,000.

Non-interest Expense

Three Months Ended June 30, 2023 vs. June 30, 2022

Operating expenses increased to $62.9 million, as compared to $58.7 million. Operating expenses were adversely impacted by $742,000 of non-core operations in the prior year period.

Excluding non-core operations, operating expenses increased by $5.0 million. This was due to increases in professional fees of $2.6 million related to the ongoing investments to improve profitability and operational efficiencies, and compensation and benefits expense of $1.1 million primarily related to inflation, annual merit-related compensation increases and higher medical costs. The current quarter also included increases to federal deposit insurance and regulatory assessments of $677,000 due to new

assessment rates that went into effect on January 1, 2023, and real estate charges on assets held for sale of $580,000.

Six months ended June 30, 2023 vs. June 30, 2022

Operating expenses increased to $124.2 million, as compared to $116.2 million. Operating expenses for the periods were adversely impacted by $92,000 and $3.1 million of non-core operations, respectively.

Excluding non-core operations, operating expenses increased by $11.1 million. This was due to increases in professional fees of $4.4 million and compensation and benefits expense of $4.3 million. The drivers of expenses for the three months ended were also the drivers for the six months ended. Additionally, other operating expenses included higher expenses of $580,000 and $427,000 related to real estate charges on assets held for sale and title search fees, respectively.

Three Months Ended June 30, 2023 vs. March 31, 2023

Excluding non-core operations of $92,000 in the prior linked quarter, operating expenses increased $1.7 million primarily due to increases in other operating expense of $898,000, related to real estate charges of $580,000, and federal deposit insurance and regulatory assessments of $716,000, primarily due to the one-time recovery of $661,000 for historical overpayments which was recognized in the prior linked quarter.

Income Tax Expense

The provision for income taxes was $9.0 million and $17.7 million for the three and six months ended June 30, 2023, respectively, as compared to $8.9 million and $16.9 million for the same prior year periods, and $8.7 million for the prior linked quarter. The effective tax rate was 24.4% and 24.0% for the three and six months ended June 30, 2023, respectively, as compared to 23.3% and 23.4% for the same prior year periods, and 23.7% for the prior linked quarter.

Financial Condition

June 30, 2023 vs. December 31, 2022

Total assets increased by $435.0 million to $13.54 billion, from $13.10 billion, due to higher cash and due from banks and loans. Cash and due from banks increased $289.8 million to $457.7 million, from $167.9 million as the Company maintained excess liquidity on balance sheet. Total loans increased by $165.6 million to $10.08 billion, from $9.92 billion, due to loan originations.

Total liabilities increased by $394.2 million to $11.91 billion, from $11.52 billion. Deposits increased by $483.1 million to $10.16 billion, from $9.68 billion. Time deposits increased to $2.77 billion from $1.54 billion, or 27.2% and 15.9% of total deposits, respectively. Brokered time deposits increased $547.9 million and retail time deposits increased $674.9 million. The loans-to-deposit ratio was 99.3%, as compared to 102.50%. FHLB advances decreased by $119.5 million to $1.09 billion, from $1.21 billion.

Total stockholders’ equity increased to $1.63 billion, as compared to $1.59 billion, reflecting net income for the six months ended June 30, 2023 and a net increase in the fair market value of available-for-sale debt securities, net of tax, which decreased accumulated other comprehensive loss by $5.6 million.

For the six months ended June 30, 2023, the Company did not repurchase shares under its stock repurchase program. There were 2,934,438 shares available for repurchase at June 30, 2023 under the existing repurchase program. Stockholders’ equity per common share5 increased to $27.37, as compared to $26.81. Tangible common equity per common share3 increased to $17.72, as compared to $17.08.

5 Also referred to as “book value per common share.”

Asset Quality

June 30, 2023 vs. December 31, 2022

The Company's asset quality remained strong, as evidenced by the following credit metrics. The Company’s non-performing loans decreased to $22.8 million from $23.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 271.51%, as compared to 244.25%. The level of 30 to 89 days delinquent loans decreased to $3.1 million, from $14.1 million, partly due to the number of days in each period. The Company’s allowance for loan credit losses was 0.61% of total loans, as compared to 0.57%. Refer to “Provision for Credit Losses” section for further discussion on the allowance.

The Company’s asset quality excluding purchased with credit deterioration (“PCD”) loans were as follows. Non-performing loans increased to $19.6 million, from $19.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 315.47%, as compared to 294.10%. The level of 30 to 89 days delinquent loans decreased to $1.2 million, from $10.5 million, partly due to the number of days in each period. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $71.5 million, or 0.71% of total loans, as compared to $68.2 million, or 0.69% of total loans.

Explanation of Non-GAAP Financial Measures

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

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, July 21, 2023 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 845952. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 307056, from one hour after the end of the call until August 18, 2023. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

* * *

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.5 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, changes in liquidity, including the size and composition of the Company’s deposit portfolio, including the percentage of uninsured deposits in the portfolio, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)


	June 30,		March 31,		December 31,		June 30,
	2023		2023		2022		2022
	(Unaudited)		(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	457,747	$	496,193	$	167,946	$	189,019

Debt securities available-for-sale, at estimated fair value	452,016		452,195		457,648		507,276
Debt securities held-to-maturity, net of allowance for securities credit losses of $964 at June 30, 2023, $1,043 at March 31, 2023, $1,128 at December 31, 2022, and $1,293 at June 30, 2022 (estimated fair value of $1,109,756 at June 30, 2023, $1,149,673 at March 31, 2023, $1,110,041 at December 31, 2022 and $987,532 at June 30, 2022)	1,222,507		1,245,424		1,221,138		1,068,034
Equity investments	96,452		101,007		102,037		75,269
Restricted equity investments, at cost	105,305		115,750		109,278		76,047
Loans receivable, net of allowance for loan credit losses of $61,791 at June 30, 2023, $60,195 at March 31, 2023, $56,824 at December 31, 2022 and $52,061 at June 30, 2022	10,030,106		9,986,949		9,868,718		9,380,688
Loans held-for-sale	4,200		1,885		690		—
Interest and dividends receivable	47,933		47,342		44,704		34,184

Premises and equipment, net	124,139		126,019		126,705		128,118

Bank owned life insurance	263,836		262,654		261,603		260,230

Assets held for sale	3,608		2,719		2,719		4,263
Goodwill	506,146		506,146		506,146		506,146
Core deposit intangible	11,476		12,470		13,497		15,827
Other assets	213,432		198,422		221,067		193,552
Total assets	$	13,538,903	$	13,555,175	$	13,103,896	$	12,438,653
Liabilities and Stockholders’ Equity
Deposits	$	10,158,337	$	9,993,095	$	9,675,206	$	9,831,484
Federal Home Loan Bank advances	1,091,666		1,346,566		1,211,166		488,750
Securities sold under agreements to repurchase with customers	74,452		70,938		69,097		105,495
Other borrowings	195,925		195,663		195,403		194,654
Advances by borrowers for taxes and insurance	27,839		31,198		21,405		23,640
Other liabilities	364,401		307,344		346,155		273,198
Total liabilities	11,912,620		11,944,804		11,518,432		10,917,221
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity	1,625,435		1,609,553		1,584,662		1,520,488
Non-controlling interest	848		818		802		944
Total stockholders’ equity	1,626,283		1,610,371		1,585,464		1,521,432
Total liabilities and stockholders’ equity	$	13,538,903	$	13,555,175	$	13,103,896	$	12,438,653

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)


	For the Three Months Ended,						For the Six Months Ended,
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
	\|---------------------- (Unaudited) ----------------------\|						\|---------- (Unaudited) -----------\|
Interest income:
Loans	$	129,104	$	121,720	$	90,731	$	250,824	$	173,199
Debt securities	14,320		14,286		7,473		28,606		14,977
Equity investments and other	6,672		3,028		1,212		9,700		2,223
Total interest income	150,096		139,034		99,416		289,130		190,399
Interest expense:
Deposits	37,934		21,330		4,317		59,264		8,358
Borrowed funds	20,053		18,902		4,302		38,955		7,017
Total interest expense	57,987		40,232		8,619		98,219		15,375
Net interest income	92,109		98,802		90,797		190,911		175,024
Provision for credit losses	1,229		3,013		1,254		4,242		3,105
Net interest income after provision for credit losses	90,880		95,789		89,543		186,669		171,919
Other income:
Bankcard services revenue	1,544		1,330		3,310		2,874		6,273
Trust and asset management revenue	645		612		658		1,257		1,267
Fees and service charges	5,602		5,159		7,646		10,761		10,706



Net gain on sales of loans	33		20		3		53		180
Net loss on equity investments	(559)		(6,801)		(8,078)		(7,360)		(10,864)
Net gain from other real estate operations	—		—		50		—		48
Income from bank owned life insurance	1,182		1,281		1,422		2,463		3,525
Commercial loan swap income	—		701		2,294		701		5,075
Other	481		(229)		236		252		183
Total other income	8,928		2,073		7,541		11,001		16,393
Operating expenses:
Compensation and employee benefits	34,222		33,920		33,153		68,142		63,848
Occupancy	5,265		5,239		4,758		10,504		10,502
Equipment	1,101		1,205		1,336		2,306		2,706
Marketing	961		982		971		1,943		1,587
Federal deposit insurance and regulatory assessments	2,465		1,749		1,788		4,214		3,678
Data processing	6,165		6,154		6,170		12,319		11,906
Check card processing	1,214		1,281		1,515		2,495		2,497
Professional fees	5,083		5,098		2,472		10,181		5,794

Amortization of core deposit intangible	994		1,027		1,178		2,021		2,388
Branch consolidation expense, net	—		70		546		70		948
Merger related expenses	—		22		196		22		2,161
Other operating expense	5,460		4,562		4,578		10,022		8,141
Total operating expenses	62,930		61,309		58,661		124,239		116,156
Income before provision for income taxes	36,878		36,553		38,423		73,431		72,156
Provision for income taxes	8,996		8,654		8,940		17,650		16,914
Net income	27,882		27,899		29,483		55,781		55,242
Net income attributable to non-controlling interest	85		16		522		101		522
Net income attributable to OceanFirst Financial Corp.	27,797		27,883		28,961		55,680		54,720
Dividends on preferred shares	1,004		1,004		1,004		2,008		2,008
Net income available to common stockholders	$	26,793	$	26,879	$	27,957	$	53,672	$	52,712
Basic earnings per share	$	0.45	$	0.46	$	0.48	$	0.91	$	0.90
Diluted earnings per share	$	0.45	$	0.46	$	0.47	$	0.91	$	0.89
Average basic shares outstanding	59,147		58,774		58,894		58,988		58,823
Average diluted shares outstanding	59,153		58,918		58,995		59,038		58,975

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(dollars in thousands)


LOANS RECEIVABLE			At
			June 30,		March 31,		December 31,		September 30,		June 30,
			2023		2023		2022		2022		2022
Commercial:
Commercial real estate - investor			$	5,319,686	$	5,296,661	$	5,171,952	$	5,007,637	$	4,808,965
Commercial real estate - owner-occupied			981,618		986,366		997,367		983,784		1,020,873
Commercial and industrial			620,284		622,201		622,372		652,620		584,464
Total commercial			6,921,588		6,905,228		6,791,691		6,644,041		6,414,302
Consumer:
Residential real estate			2,906,556		2,881,811		2,861,991		2,813,209		2,758,269

Home equity loans and lines and other consumer ("other consumer")			255,486		252,773		264,372		261,510		252,314

Total consumer			3,162,042		3,134,584		3,126,363		3,074,719		3,010,583
Total loans			10,083,630		10,039,812		9,918,054		9,718,760		9,424,885

Deferred origination costs (fees), net			8,267		7,332		7,488		7,249		7,864
Allowance for loan credit losses			(61,791)		(60,195)		(56,824)		(53,521)		(52,061)
Loans receivable, net			$	10,030,106	$	9,986,949	$	9,868,718	$	9,672,488	$	9,380,688
Mortgage loans serviced for others			$	50,820	$	50,421	$	51,736	$	53,869	$	56,045
	At June 30, 2023 Average Yield
Loan pipeline (1):
Commercial	7.71	%	$	39,164	$	236,550	$	114,232	$	339,487	$	273,843
Residential real estate	6.82		58,022		61,258		36,958		80,591		104,920
Other consumer	7.51		18,621		20,589		14,890		19,395		6,278
Total	7.23	%	$	115,807	$	318,397	$	166,080	$	439,473	$	385,041


	For the Three Months Ended
	June 30,				March 31,		December 31,			September 30,			June 30,
	2023				2023		2022			2022			2022
	Average Yield
Loan originations:
Commercial	7.60	%	$	197,732	$	200,504	$	539,949		$	356,726		$	645,863
Residential real estate	6.40		100,542		65,580		101,530		(2)	129,808			173,365
Other consumer	7.21		22,487		15,927		42,624			57,254			16,253
Total	7.20	%	$	320,761	$	282,011	$	684,103		$	543,788		$	835,481
Loans sold			$	18,664	$	3,861	$	2,340		$	9,425	(3)	$	—

(1)Loan pipeline includes loans approved but not funded.

(2)Excludes residential real estate loan pool purchases of $9.9 million for the three months ended December 31, 2022.

(3)Excludes the sale of a small business administration loan of $1.2 million for the three months ended September 30, 2022.


DEPOSITS	At
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
Type of Account
Non-interest-bearing	$	1,854,136	$	1,984,197	$	2,101,308	$	2,325,547	$	2,312,126
Interest-bearing checking	3,537,834		3,697,223		3,829,683		3,909,864		3,696,067
Money market	770,440		615,993		714,386		749,229		716,782
Savings	1,229,897		1,308,715		1,487,809		1,570,472		1,606,534
Time deposits	2,766,030		2,386,967		1,542,020		1,404,357		1,499,975
Total deposits	$	10,158,337	$	9,993,095	$	9,675,206	$	9,959,469	$	9,831,484

OceanFirst Financial Corp.

ASSET QUALITY

(dollars in thousands)


ASSET QUALITY	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Non-performing loans:
Commercial real estate - investor	$	13,000		$	13,643		$	10,483		$	9,866		$	2,609
Commercial real estate - owner-occupied	565			251			4,025			1,976			8,233
Commercial and industrial	199			162			331			321			364
Residential real estate	6,174			5,650			5,969			5,958			5,846
Other consumer	2,820			2,731			2,457			3,377			3,701

Total non-performing loans	$	22,758		$	22,437		$	23,265		$	21,498		$	20,753



Delinquent loans 30 to 89 days	$	3,136		$	11,232		$	14,148		$	11,846		$	9,558




Modifications to borrowers experiencing financial difficulty (1)
Non-performing (included in total non-performing loans above)	$	6,882		$	6,556		$	6,361		$	10,047		$	10,493
Performing	7,516			7,619			7,530			6,065			6,946
Total modifications to borrowers experiencing financial difficulty (1)	$	14,398		$	14,175		$	13,891		$	16,112		$	17,439

Allowance for loan credit losses	$	61,791		$	60,195		$	56,824		$	53,521		$	52,061
Allowance for loan credit losses as a percent of total loans receivable (2)	0.61		%	0.60		%	0.57		%	0.55		%	0.55		%
Allowance for loan credit losses as a percent of total non-performing loans (2)	271.51			268.28			244.25			248.96			250.86
Non-performing loans as a percent of total loans receivable	0.23			0.22			0.23			0.22			0.22
Non-performing assets as a percent of total assets	0.17			0.17			0.18			0.17			0.17
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	18,872		$	20,513		$	27,129		$	29,249		$	35,227
Non-performing PCD loans	3,171			3,929			3,944			3,043			3,529
Delinquent PCD and non-performing loans 30 to 89 days	1,976			2,248			3,657			1,434			1,381


PCD modifications to borrowers experiencing financial difficulty (1)	755			758			765			715			997
Asset quality, excluding PCD loans (3)
Non-performing loans	19,587			18,508			19,321			18,455			17,224

Delinquent loans 30 to 89 days (excludes non-performing loans)	1,160			8,984			10,491			10,412			8,177





Modifications to borrowers experiencing financial difficulty(1)	13,643			13,417			13,126			15,397			16,442
Allowance for loan credit losses as a percent of total non-performing loans (2)	315.47		%	325.24		%	294.10		%	290.01		%	302.26		%
Non-performing loans as a percent of total loans receivable	0.19			0.18			0.19			0.19			0.18
Non-performing assets as a percent of total assets	0.14			0.14			0.15			0.15			0.14

(1)For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings. For periods in 2022, the balances only include troubled debt restructurings.

(2)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $9.8 million, $10.5 million, $11.4 million, $13.6 million and $15.5 million at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively.

(3)All balances and ratios exclude PCD loans.

(continued)


NET LOAN (CHARGE-OFFS) RECOVERIES	For the Three Months Ended
	June 30,			March 31,		December 31,		September 30,		June 30,
	2023			2023		2022		2022		2022
Net loan (charge-offs) recoveries:
Loan charge-offs	$	(206)		$	(10)	$	(138)	$	(5)	$	(287)
Recoveries on loans	83			57		143		257		278
Net loan (charge-offs) recoveries	$	(123)		$	47	$	5	$	252	$	(9)
Net loan (charge-offs) recoveries to average total loans (annualized)	—		%	NM*		NM*		NM*		—		%
Net loan (charge-offs) recoveries detail:
Commercial	$	(117)		$	—	$	(46)	$	117	$	154
Residential real estate	9			8		9		44		(47)
Other consumer	(15)			39		42		91		(116)

Net loan (charge-offs) recoveries	$	(123)		$	47	$	5	$	252	$	(9)

* Not meaningful as amounts are net loan recoveries.

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME


	For the Three Months Ended
	June 30,						March 31,						June 30,
	2023						2023						2022
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	308,238	$	4,283	5.57	%	$	129,740	$	938	2.93	%	$	67,440	$	100	0.59	%
Securities (2)	1,931,032		16,709		3.47		1,955,399		16,376		3.40		1,811,869		8,585		1.90
Loans receivable, net (3)
Commercial	6,912,698		99,350		5.76		6,840,006		92,780		5.50		6,278,465		65,390		4.18
Residential real estate	2,895,629		25,936		3.58		2,872,049		25,161		3.50		2,718,787		22,742		3.35
Other consumer	255,785		3,818		5.99		263,404		3,779		5.82		251,014		2,599		4.15

Allowance for loan credit losses, net of deferred loan costs and fees	(53,327)		—		—		(50,554)		—		—		(43,683)		—		—
Loans receivable, net	10,010,785		129,104		5.17		9,924,905		121,720		4.96		9,204,583		90,731		3.95
Total interest-earning assets	12,250,055		150,096		4.91		12,010,044		139,034		4.68		11,083,892		99,416		3.60
Non-interest-earning assets	1,217,666						1,234,549						1,168,093
Total assets	$	13,467,721					$	13,244,593					$	12,251,985
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,718,289	11,964		1.29	%	$	3,863,338	6,269		0.66	%	$	4,020,474	1,612		0.16	%
Money market	694,311		3,678		2.12		705,631		1,759		1.01		739,647		279		0.15
Savings	1,248,312		389		0.12		1,369,118		334		0.10		1,639,568		161		0.04
Time deposits	2,458,872		21,903		3.57		1,826,662		12,968		2.88		937,387		2,265		0.97
Total	8,119,784		37,934		1.87		7,764,749		21,330		1.11		7,337,076		4,317		0.24
FHLB Advances	1,246,914		15,406		4.96		1,222,791		14,614		4.85		538,754		1,647		1.23
Securities sold under agreements to repurchase	71,752		192		1.07		71,898		90		0.51		103,929		41		0.16
Other borrowings	195,754		4,455		9.13		212,159		4,198		8.02		194,481		2,614		5.39
Total borrowings	1,514,420		20,053		5.31		1,506,848		18,902		5.09		837,164		4,302		2.06
Total interest-bearing liabilities	9,634,204		57,987		2.41		9,271,597		40,232		1.76		8,174,240		8,619		0.42
Non-interest-bearing deposits	1,873,226						2,028,507						2,328,124
Non-interest-bearing liabilities	333,598						334,812						214,900
Total liabilities	11,841,028						11,634,916						10,717,264
Stockholders’ equity	1,626,693						1,609,677						1,534,721
Total liabilities and equity	$	13,467,721					$	13,244,593					$	12,251,985
Net interest income			$	92,109					$	98,802					$	90,797
Net interest rate spread (4)					2.50	%					2.92	%					3.18	%
Net interest margin (5)					3.02	%					3.34	%					3.29	%
Total cost of deposits (including non-interest-bearing deposits)					1.52	%					0.88	%					0.18	%

(continued)


	For the Six Months Ended June 30,
	2023						2022
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	219,482	$	5,221	4.80	%	$	78,074	$	136	0.35	%
Securities (2)	1,943,148		33,085		3.43		1,829,065		17,064		1.88
Loans receivable, net (3)
Commercial	6,876,553		192,130		5.63		6,157,060		123,745		4.05
Residential real estate	2,883,904		51,097		3.54		2,631,208		44,081		3.35
Other consumer	259,573		7,597		5.90		254,002		5,373		4.27

Allowance for loan credit losses, net of deferred loan costs and fees	(51,948)		—		—		(42,080)		—		—
Loans receivable, net	9,968,082		250,824		5.07		9,000,190		173,199		3.87
Total interest-earning assets	12,130,712		289,130		4.80		10,907,329		190,399		3.51
Non-interest-earning assets	1,226,061						1,191,453
Total assets	$	13,356,773					$	12,098,782
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,790,413	18,234		0.97	%	$	4,197,935	3,762		0.18	%
Money market	699,940		5,437		1.57		763,721		596		0.16
Savings	1,308,381		723		0.11		1,624,575		286		0.04
Time deposits	2,144,514		34,870		3.28		853,017		3,714		0.88
Total	7,943,248		59,264		1.50		7,439,248		8,358		0.23
FHLB Advances	1,234,919		29,824		4.87		285,501		1,682		1.19
Securities sold under agreements to repurchase	71,825		282		0.79		110,738		83		0.15
Other borrowings	203,911		8,849		8.75		211,407		5,252		5.01
Total borrowings	1,510,655		38,955		5.20		607,646		7,017		2.33
Total interest-bearing liabilities	9,453,903		98,219		2.10		8,046,894		15,375		0.39
Non-interest-bearing deposits	1,950,437						2,364,757
Non-interest-bearing liabilities	334,201						155,832
Total liabilities	11,738,541						10,567,483
Stockholders’ equity	1,618,232						1,531,299
Total liabilities and equity	$	13,356,773					$	12,098,782
Net interest income			$	190,911					$	175,024
Net interest rate spread (4)					2.70	%					3.12	%
Net interest margin (5)					3.17	%					3.24	%
Total cost of deposits (including non-interest-bearing deposits)					1.21	%					0.17	%

(1) Average yields and costs are annualized.

(2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.

(3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.

(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income divided by average interest-earning assets.

OceanFirst Financial Corp.

SELECTED QUARTERLY FINANCIAL DATA

(in thousands, except per share amounts)


	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
Selected Financial Condition Data:
Total assets	$	13,538,903	$	13,555,175	$	13,103,896	$	12,683,453	$	12,438,653
Debt securities available-for-sale, at estimated fair value	452,016		452,195		457,648		470,300		507,276
Debt securities held-to-maturity, net of allowance for securities credit losses	1,222,507		1,245,424		1,221,138		1,027,712		1,068,034
Equity investments	96,452		101,007		102,037		81,722		75,269
Restricted equity investments, at cost	105,305		115,750		109,278		77,556		76,047
Loans receivable, net of allowance for loan credit losses	10,030,106		9,986,949		9,868,718		9,672,488		9,380,688

Deposits	10,158,337		9,993,095		9,675,206		9,959,469		9,831,484
Federal Home Loan Bank advances	1,091,666		1,346,566		1,211,166		514,200		488,750
Securities sold under agreements to repurchase and other borrowings	270,377		266,601		264,500		291,203		300,149
Total stockholders’ equity	1,626,283		1,610,371		1,585,464		1,540,216		1,521,432


	For the Three Months Ended,
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
Selected Operating Data:
Interest income	$	150,096	$	139,034	$	130,277	$	110,499	$	99,416
Interest expense	57,987		40,232		23,789		14,534		8,619
Net interest income	92,109		98,802		106,488		95,965		90,797
Provision for credit losses	1,229		3,013		3,647		1,016		1,254
Net interest income after provision for credit losses	90,880		95,789		102,841		94,949		89,543
Other income (excluding activity related to debt and equity investments)	9,487		9,571		10,364		11,788		15,619
Net (loss) gain on equity investments	(559)		(2,193)		17,187		3,362		(8,078)

Net loss on sale of investments	—		(5,305)		—		—		—
Operating expenses (excluding merger related and branch consolidation expense (benefit), net)	62,930		61,217		59,341		59,045		57,919

Branch consolidation expense (benefit), net	—		70		111		(346)		546
Merger related expenses	—		22		276		298		196
Income before provision for income taxes	36,878		36,553		70,664		51,102		38,423
Provision for income taxes	8,996		8,654		17,353		12,298		8,940
Net income	27,882		27,899		53,311		38,804		29,483
Net income attributable to non-controlling interest	85		16		39		193		522
Net income attributable to OceanFirst Financial Corp.	$	27,797	$	27,883	$	53,272	$	38,611	$	28,961
Net income available to common stockholders	$	26,793	$	26,879	$	52,268	$	37,607	$	27,957
Diluted earnings per share	$	0.45	$	0.46	$	0.89	$	0.64	$	0.47
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	1,152	$	1,237	$	2,278	$	2,004	$	2,196

(continued)


	At or For the Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)	0.80	%	0.82	%	1.62	%	1.19	%	0.92	%
Return on average tangible assets (3) (4)	0.83		0.86		1.68		1.24		0.96
Return on average stockholders’ equity (3)	6.61		6.77		13.25		9.68		7.31
Return on average tangible stockholders’ equity (3) (4)	9.70		10.00		19.85		14.62		11.08
Return on average tangible common equity (3) (4)	10.21		10.53		20.97		15.47		11.72
Stockholders’ equity to total assets	12.01		11.88		12.10		12.14		12.23
Tangible stockholders’ equity to tangible assets (4)	8.51		8.37		8.47		8.38		8.39
Tangible common equity to tangible assets (4)	8.09		7.95		8.03		7.92		7.92
Net interest rate spread	2.50		2.92		3.37		3.19		3.18
Net interest margin	3.02		3.34		3.64		3.36		3.29
Operating expenses to average assets	1.87		1.88		1.85		1.87		1.92
Efficiency ratio (5)	62.28		60.78		44.56		53.10		59.65
Loans-to-deposits	99.30		100.50		102.50		97.60		95.90


	For the Six Months Ended June 30,
	2023		2022
Performance Ratios (Annualized):
Return on average assets (3)	0.81	%	0.88	%
Return on average tangible assets (3) (4)	0.84		0.92
Return on average stockholders’ equity (3)	6.69		6.94
Return on average tangible stockholders’ equity (3) (4)	9.84		10.52
Return on average tangible common equity (3) (4)	10.37		11.13
Net interest rate spread	2.70		3.12
Net interest margin	3.17		3.24
Operating expenses to average assets	1.88		1.94
Efficiency ratio (5)	61.53		60.68

(continued)


	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	339,890		$	333,436		$	324,066		$	273,815		$	279,222
Nest Egg AUA/M	397,927			400,227			403,538			402,256			398,344
Total AUA/M	737,817			733,663			727,604			676,071			677,566
Per Share Data:
Cash dividends per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.17
Stockholders' equity per common share at end of period	27.37			27.07			26.81			26.04			25.73
Tangible common equity per common share at end of period (4)	17.72			17.42			17.08			16.30			15.96
Common shares outstanding at end of period	59,420,859			59,486,086			59,144,128			59,138,507			59,130,236
Preferred shares outstanding at end of period	57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:	38			38			38			38			38
Quarterly Average Balances
Total securities	$	1,931,032		$	1,955,399		$	1,764,764		$	1,748,687		$	1,811,869
Loans receivable, net	10,010,785			9,924,905			9,771,104			9,512,447			9,204,583
Total interest-earning assets	12,250,055			12,010,044			11,605,891			11,326,782			11,083,892
Total goodwill and core deposit intangible	518,265			519,282			520,400			521,566			522,666
Total assets	13,467,721			13,244,593			12,834,411			12,517,955			12,251,985
Time deposits	2,458,872			1,826,662			1,486,410			1,467,297			937,387
Total deposits (including non-interest-bearing deposits)	9,993,010			9,793,256			9,975,509			10,066,342			9,665,200
Total borrowings	1,514,420			1,506,848			915,565			643,294			837,164
Total interest-bearing liabilities	9,634,204			9,271,597			8,669,190			8,380,936			8,174,240
Non-interest bearing deposits	1,873,226			2,028,507			2,221,884			2,328,700			2,328,124
Stockholders' equity	1,626,693			1,609,677			1,564,856			1,541,755			1,534,721
Tangible stockholders’ equity (4)	1,108,428			1,090,395			1,044,456			1,020,189			1,012,055

Quarterly Yields and Costs
Total securities	3.47		%	3.40		%	2.83		%	2.27		%	1.90		%
Loans receivable, net	5.17			4.96			4.76			4.18			3.95
Total interest-earning assets	4.91			4.68			4.46			3.88			3.60
Time deposits	3.57			2.88			1.95			1.53			0.97
Total cost of deposits (including non-interest-bearing deposits)	1.52			0.88			0.53			0.36			0.18
Total borrowed funds	5.31			5.09			4.49			3.27			2.06
Total interest-bearing liabilities	2.41			1.76			1.09			0.69			0.42
Net interest spread	2.50			2.92			3.37			3.19			3.18
Net interest margin	3.02			3.34			3.64			3.36			3.29

(1) With the exception of end of quarter ratios, all ratios are based on average daily balances.

(2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”

(3) Ratios for each period are based on net income available to common stockholders.

(4) Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”

(5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.

OceanFirst Financial Corp.

OTHER ITEMS

(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION


	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Core Earnings:
Net income available to common stockholders (GAAP)	$	26,793		$	26,879		$	52,268		$	37,607		$	27,957
Add (less) non-recurring and non-core items:
Net loss (gain) on equity investments(1)	559			2,193			(17,187)			(3,362)			8,078
Net loss on sale of investments(1)	—			5,305			—			—			—
Merger related expenses	—			22			276			298			196
Branch consolidation expense (benefit), net	—			70			111			(346)			546








Income tax (benefit) expense on items	(162)			(1,797)			4,060			824			(2,132)
Core earnings (Non-GAAP)	$	27,190		$	32,672		$	39,528		$	35,021		$	34,645
Income tax expense	$	8,996		$	8,654		$	17,353		$	12,298		$	8,940
Provision for credit losses	1,229			3,013			3,647			1,016			1,254
Less: income tax (benefit) expense on non-core items	(162)			(1,797)			4,060			824			(2,132)
Core earnings PTPP (Non-GAAP)	$	37,577		$	46,136		$	56,468		$	47,511		$	46,971
Core earnings diluted earnings per share	$	0.46		$	0.55		$	0.67		$	0.60		$	0.59
Core earnings PTPP diluted earnings per share	$	0.64		$	0.78		$	0.96		$	0.81		$	0.80

Core Ratios (Annualized):
Return on average assets	0.81		%	1.00		%	1.22		%	1.11		%	1.13		%

Return on average tangible stockholders’ equity	9.84			12.15			15.01			13.62			13.73
Return on average tangible common equity	10.36			12.80			15.86			14.40			14.53
Efficiency ratio	61.94			56.49			50.78			54.80			54.43
(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.


	For the Six Months Ended June 30,
	2023			2022
Core Earnings:
Net income available to common stockholders (GAAP)	$	53,672		$	52,712
Add (less) non-recurring and non-core items:
Merger related expenses	22			2,161
Branch consolidation expense, net	70			948
Net loss on equity investments(1)	2,752			10,864





Net loss on sale of investments(1)	5,305			—
Income tax benefit on items	(1,959)			(3,273)
Core earnings (Non-GAAP)	$	59,862		$	63,412
Income tax expense	$	17,650		$	16,914
Credit loss provision	4,242			3,105
Less: income tax benefit on non-core items	(1,959)			(3,273)
Core earnings PTPP (Non-GAAP)	$	83,713		$	86,704
Core diluted earnings per share	$	1.01		$	1.08
Core earnings PTPP diluted earnings per share	$	1.42		$	1.47

Core Ratios (Annualized):
Return on average assets	0.90		%	1.06		%

Return on average tangible stockholders’ equity	10.98			12.65
Return on average tangible common equity	11.56			13.38
Efficiency ratio	59.13			55.89
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.

(continued)


	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Tangible Equity:
Total stockholders' equity	$	1,626,283		$	1,610,371		$	1,585,464		$	1,540,216		$	1,521,432
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	11,476			12,470			13,497			14,656			15,827
Tangible stockholders' equity	1,108,661			1,091,755			1,065,821			1,019,414			999,459
Less:
Preferred stock	55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,053,134		$	1,036,228		$	1,010,294		$	963,887		$	943,932

Tangible Assets:
Total assets	$	13,538,903		$	13,555,175		$	13,103,896		$	12,683,453		$	12,438,653
Less:
Goodwill	506,146			506,146			506,146			506,146			506,146
Core deposit intangible	11,476			12,470			13,497			14,656			15,827
Tangible assets	$	13,021,281		$	13,036,559		$	12,584,253		$	12,162,651		$	11,916,680

Tangible stockholders' equity to tangible assets	8.51		%	8.37		%	8.47		%	8.38		%	8.39		%
Tangible common equity to tangible assets	8.09		%	7.95		%	8.03		%	7.92		%	7.92		%

. . . 1 The 2Q 2023 Earnings Release Supplement should be read in conjunction with the Earnings Release furnished as Exhibit 99.1 to Form 8-K filed with the SEC on July 20, 2023. Exhibit 99.2 OceanFirst Financial Corp. 2Q 2023 Earnings Release Supplement1 July 2023

. . .Legal Disclaimer FORWARD LOOKING STATEMENTS. In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, changes in liquidity, including the size and composition of the Company’s deposit portfolio, including the percentage of uninsured deposits in the portfolio, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. NON-GAAP FINANCIAL INFORMATION. This presentation contains certain non-GAAP (generally accepted accounting principles) measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See reconciliations of certain non-GAAP measures included in the Company’s Earnings Release furnished as Exhibit 99.1 to Form 8-K as filed with the SEC on July 20, 2023. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. These estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. 2

. . .Q2-23 Financial Highlights 3 (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information. Financial Highlights $0.46 Core Diluted EPS 1 $92.1 million Net Interest Income 0.81% Core ROAA 1 10.36% Core ROTCE 1 $0.64 Core PTPP Diluted EPS 1 10.21% CET1 Ratio  The Company maintained on-balance sheet liquidity and funding capacity at 260% of our adjusted uninsured deposits and manages a high-quality investment portfolio.  Capital ratios remain strong. Mark to market would impact capital less than 65 bps.  Earnings and profitability declined due to the increased beta on deposit costs.  Loan growth has moderated, reflecting continued price and credit structure discipline.

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

. . .Loan Portfolio Trends 5 Moderated Loan Growth in the Portfolio ($’millions)  Loan growth has moderated prudently, with the expectation of single-digit growth for the remainder of the year.  Diversified portfolio with a focus on CRE Investor Owned and Residential loans.  Attractive and improving loan yields. 4,809 5,008 5,172 5,297 5,320 1,021 984 997 986 982584 653 622 622 620 2,758 2,813 2,862 2,882 2,907 264 4.76% 4.18% 3.95% Q2-23 252 Q2-22 262 Q3-22 10,084 Q4-22 4.96% Q1-23 2539,425 5.17% 2559,719 9,918 10,040 Home Equity & Consumer Average Loan Yield C&I Residential CRE Owner Occupied CRE Investor Owned

. . .Credit Quality Historically Top Quartile and Well Positioned  Underlying collateral is diversified: The underlying collateral for the CRE Investor Owned (“Investor”) portfolio is highly diversified and focused in low risk collateral types.  Central business district loans comprise 1.1% of total assets and have a weighted average LTV of 54.5% and weighted average DSCR of 1.5.  Criticized and classified office loans comprised of 3.6% of total office loans.  Maturity wall is modest and has a minimal impact: Our maturity wall, totaling $463 million (or 4.6% of total loans), is set to mature in 2023 and 2024 with weighted average rates of 6.27% and 5.54%, for each respective cohort.  Repricing analysis(2) was performed on 90% of the maturing 2023 and 2024 CRE Investor and Construction portfolio, increasing interest rates to 7%. ~90% of the population retained a DSCR >/= 1.0 when stressed at the originally underwritten rents.  The weighted average DSCR of loans subject to the stress test is 1.32. 6 CRE Investor Owner Portfolio by Geography Notes: All data presented represents CRE Investor balances, excluding purchase accounting marks and Construction as of June 30, 2023, unless otherwise noted. (1) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other. (2) We are actively tracking CRE loan underlying cash flows and noted no material change from Q1-23. As such, we have deemed the results from the Q1-23 repricing analysis to be relevant for the current quarter. Maturity Wall Detail Balance Weighted Average % of Maturity Year ($'millions) Rate LTV DSCR Loans 2023 119 6.27 50.56 1.17 1.18% 2024 344 5.54 61.00 1.99 3.41% Total 463 5.72 58.32 1.78 4.59% 29% 21% 37% 8% NY PA/DE NJ MA MD/DC Other 3% 3% CRE Investor Owned - Collateral Details $'millions CRE: Investor Owned % of Total WA LTV WA DSCR Retail 1,091 23.1% 55.5 1.65 Office 1,055 22.4% 55.8 1.81 Multi-Family 903 19.2% 61.3 1.50 Industrial / Warehouse 748 15.9% 49.5 2.00 Hospitality 137 2.9% 50.7 1.28 Other 1 779 16.5% 45.8 1.67 CRE: Investor Owned 4,713 100.0% 54.0 1.70 Construction 607 CRE IO and Construction Total 5,320

. . . Strong asset quality trends driven by prudent loan growth and credit decisioning. Quarterly Credit Trends (1 of 2) 7 Non-Performing Loans and Assets ($’000)1 Special Mention and Substandard Loans ($’000) Note: Of the $30.9 million in Special Mention loans and $88.2 million of Substandard loans, $28.7 million (or 93.1%) and $80.4 million (or 91.2%) are current on payments, respectively. 0.18% 0.14% Q2-22 0.19% 0.15% Q3-22 0.19% 0.15% Q4-22 0.18% 0.14% Q1-23 0.19% 0.14% Q2-23 Non-performing loans to total loans Non-performing assets to total assets Non-performing loans 17,224 18,455 19,321 19,587 103,294 97,353 50,776 86,765 88,152 60,812 54,330 48,214 23,980 30,859 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 164,106 151,683 98,990 110,744 119,011 Special Mention Substandard (1) PCD loans are not included in these metrics. Refer to Asset Quality section in the Earnings Release for additional information. 18,508

. . .Quarterly Credit Trends (2 of 2) 8 Loan Allowance for Credit Losses (ACL) Plus PCD & General Credit Marks / Total Loans NCOs / (Recoveries) and Provision for Credit Loss Expense ($’000) 0.17% 0.55% Q2-22 0.14% 0.55% Q3-22 0.12% 0.57% Q4-22 0.10% 0.60% Q1-23 Q2-23 0.72% 0.69% 0.69% 0.70% 0.71% 0.61% 0.10% PCD & General Credit Marks ACL 9 (252) (5) (47) 123 1,254 Q2-22 1,016 Q3-22 3,647 Q4-22 3,013 Q1-23 Q2-23 1,229 Provision Expense Net Charge-offs (Recoveries) NCO / Average Loans were 0% for all periods presented.

. . . COVID-19 Pandemic Track Record of Strong Credit Performance 9  From 2006 to 2022, inclusive of the Global Financial Crisis, Hurricane Sandy, and the COVID-19 Pandemic, OCFC’s CRE NCO to average CRE loans totaled 6 bps per year compared to 81 bps for all commercial banks between $10 - $50 billion in assets.  Peak CRE net charge-offs for OCFC totaled 47 bps in 2020, related to proactively de-risking our balance sheet. Peak CRE charge- offs for commercial banks between $10-$50 billion in assets were 455 bps in 2010. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1-23 OCFC CRE NCO / Avg Assets OCFC NCO / Avg Assets Commercial Banks ($10-50 bn) CRE NCO / Avg Assets Commercial Banks ($10-50 bn) NCO / Avg Assets Global Financial Crisis Cumulative CRE charge-offs for OCFC between 2006 and Q1-23 were minimal, totaling $26.9 million. Hurricane Sandy Source: S&P Global. Note: Commercial bank reporting is on a one quarter lag.

. . .Deposit Trends 10 (1) Deposit beta is calculated as the increase in rate paid on total deposits per quarter divided by the incremental increase in the fed funds rate since January 1, 2022. (2) Includes money market and institutional deposits.  Deposits (excl. brokered CD’s) remained stable, decreasing by less than 0.2% from the linked quarter.  Continued mix shift in Q2-23 towards time deposits is driven by an increase in brokered CDs of ~$180 million, helping to retain existing customers.  The duration on retail and brokered CD’s were 8.0 months and 6.9 months, respectively.  We maintain prudent price discipline resulting in an overall deposit beta of 29%. Excluding brokered CDs, our deposit beta totaled 21%. We expect deposit betas to continue to rise as the competitive landscape for deposits increases. Shift in Deposit Mix to Drive Retention ($’millions) 1.6% Q3-22 6.4% 0.3% Q2-23Q2-22 0.6% 6.7% 0.4% 9.8% 28.8% Q4-22 20.0% 1.1% Q1-23 Deposit Beta (1) Cost of Deposits (Spot) 1,500 1,404 1,542 2,387 2,766 717 749 714 616 7701,606 1,570 1,488 1,309 1,230 3,696 3,910 3,830 3,697 3,538 2,312 2,326 2,101 1,984 1,854 9,675 Q2-22 9,831 Q3-22 Q4-22 Q1-23 Q2-23 9,959 9,993 10,158 SavingsNon Int. Bearing Time Deposits Int. Bearing Checking Money Market Deposit Beta and Cost Trend Cost of Deposits Type of Account Qtr. Avg. June 30 Spot Int. Bearing Checking 1.29% 1.11% Money Market (2) 2.12% 2.52% Savings 0.12% 0.12% Time Deposits 3.57% 3.77% Total (incl. non-int bearing) 1.52% 1.63%

. . .~85% of Total Deposits Are Insured and Population Remains Granular 11  OCFC’s deposit composition is extremely granular with 98% of all deposit accounts having less than $250K.  OCFC customers have long tenured relationships with an average age of 9 years. The median age of a deposit relationship is 8 years.  Average non-government deposit account is well below the FDIC insurance limit.  Government deposits in New Jersey are protected by the State under the NJ Government Unit Deposit Protection Act and fully collateralized by OCFC. Note: Refer to Appendices for detailed adjusted uninsured deposit bridge as of 6/30/23. Prior periods are reported under historical methodology. Note #2: All data presented is as of June 30, 2023, unless otherwise noted. (1)The State of NJ requires collateralization on municipal deposits and administers a backstop to protect these deposits. Deposit Accounts by Size Length of Customer Relationships 77.3% 77.5% 78.7% 81.4% 84.9% 22.7% 22.5% 21.3% 18.6% 15.1% Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Adj Uninsured Deposits Adj Insured Deposits 9,831 9,959 9,675 9,993Total Deposits ($’millions) 98% < $250K 2% > $250K 235.2K Accounts 32% 20%17% 21% 10% < 5 years 5-10 Years10-15 Years 15-25 Years > 25 Years 152.7K Customers Customer Segment Segment Average Balance Personal $21K Business $134K Government1 $903K 10,158 Reduction in uninsured deposits percentage of total deposits in Q2-23 due to methodology change to improve accuracy of estimated adjusted uninsured deposits.

. . .Net Interest Income and Net Interest Margin Trends 12 (1) Core NIM excludes purchase accounting and prepayment fee income. Refer to the Earnings Release for additional information. Core NIM1 vs NIM NIM Bridge Q1-23 NIM -0.27 3.02% Ordinary course rate impacts 0.01 Quarter-specific impacts (payoffs and prepayment fees) -0.06 Liquidity build- up impacts Q2-23 NIM 3.34% 3.34% 3.64% 3.54% 3.29% 3.12% 3.28% Q2-22 3.36% Q3-22 Q4-22 3.30% Q1-23 3.02% 2.97% Q2-23 NIM Core NIM Net Interest Income ($’000) Q2-23Q2-22 90,797 95,965 Q3-22 106,488 Q4-22 98,802 Q1-23 92,109 Net Interest Income Headwinds  Competitive market environment as peers compete on rate for quality credit.  Maintaining a healthy loan-to-deposit ratio while remaining disciplined on deposit pricing and managing funding costs.

. . . Core Efficiency Ratio1 Expense Discipline and Focused Investment 13 Core Non-Interest Expense1 ($’000) 41,721 42,331 45,711 45,981 47,610 12,992 13,937 11,111 13,108 12,923 2,7773,206 Q4-22Q2-22 2,519 Q3-22 2,128 Q1-23 2,397 Q2-23 57,919 59,045 59,341 61,217 62,930 Trident Technology Expense Other Core Non-Int Exp 56.49% 54.43% Q2-22 54.80% Q4-22Q3-22 50.78% Q1-23 61.94% Q2-23 1.89% 1.91% 1.88% 1.87% 1.87% Core Non-Interest Expense to Average Assets (Annualized)Core Efficiency Ratio (1For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information.  Q2-23 core operating expenses increased $1.7 million from the prior linked quarter and totaled $62.9 million.  The current quarter included one-time expenses of $1.0 million that are not expected to be recurring.  We are implementing a series of operating leverage strategies that will reduce total operating expenses no later than Q4-23 and continue into 2024.

. . .Generating Consistent and Attractive Returns 14 Book Value and Tangible Book Value per Common Share ($)1 Core ROAA1, ROTE1, and ROTCE1 • Book value per share increased by $0.30 (or 1.1%) per share compared to the linked quarter. • Tangible book value per common share increased by $0.30 (or 1.7%) compared to the linked quarter. • Capital ratios remain strong when stress tested with hypothetical sale of entire investment portfolio. Capital Management ($’millions) 15.96 16.30 17.08 17.42 17.72 25.73 26.04 26.81 27.07 27.37 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Book Value per Share Tangible Book Value per Common Share 13.73% 14.53% 1.13% Q2-22 13.62% 14.40% 1.11% Q3-22 15.01% 15.86% 1.22% Q4-22 12.15% 12.80% 1.00% Q1-23 9.84% 10.36% 0.81% Q2-23 Core ROTE Core ROTCE Core ROAA 10 12 12 12 12 5 8.39% Q2-22 8.38% 0 Q3-22 8.47% 0 Q4-22 8.37% 0 Q1-23 8.51% 0 Q2-23 Tangible Stockholders’ Equity to Tangible Assets1 Share Repurchases Cash Dividend (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information.

. . .Leading TBV Growth Supported by Prudent Liquidity Management 15 Tangible Book Value per Share Growth (Q1-22 to Q1-23)(1) (1) Peers include those companies defined in definitive proxy statement filed April 21, 2023. Excludes Investors Bancorp due to the sale to Citizens Financial Group. -20% -10% 0% 10% -30% -25% -15% -5% 5% Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15OCFC Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 9.3% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 16

. . .Management 2023 Outlook – Update 16 Loans Deposits Operating Expenses Net Interest Margin Capital • Continued focus on credit risk management, anchored by our diversified CRE portfolio that has performed well in market downturns • Maintain loan-to-deposits ratio ~100% for remainder of the year • Accounts for uncertainty in deposit flows. Our expectation is moderate outflow of non-maturity deposits, offset by an increase in promo CDs • Accounts for flexibility to sustain increased liquidity levels as needed Low single-digit growth for full year Low single-digit growth for full year Q4-23 expected to stabilize in the $58- $59 million range Flat to nominal decline in Q3-23 Flat CET1 ratio (~10%) Guidance Key Assumptions / Commentary • The current quarter included one-time expenses of $1.0 million that are not expected to be recurring • Q3-23 will likely remain elevated due to charges associated with continued expense rationalization • This does not include the potential one-time proposed FDIC special assessment, which is expected to be $3.0 million based on initial guidance. This could be lower depending on the final assessment rules • We are working on incremental opportunities to reduce expenses modestly in 2024

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

. . .Liquidity Sources are Robust and Diverse 18 Liquidity remains robust:  Adjusted uninsured deposits accounted for 15% of total deposits.  Cash held on balance sheet totaled $338 million(1).  OCFC had no outstanding borrowings from the Federal Reserve Discount Window or Bank Term Funding Program, strong sources of back stop liquidity.  As the banking environment continues to stabilize, we will evaluate our liquidity position and needs through Q3-23 and Q4-23, with potential reductions in excess liquidity to be redeployed into new loans. 1,814 1,548 1,335 175 702 4,026 Liquidity Sources Adjusted Uninsured Deposits Adjusted Uninsured Deposits FRB Discount Window Capacity FedFunds and Repo Lines Available FHLB Remaining Capacity Cash and Unpledged Securities Note: All data presented is as of June 30, 2023. (1) Excludes estimated cash used in daily banking operations. 260% Numbers in the above table are in $’millions.

. . .High Quality and Low Risk Investment Portfolio 19  Unrealized gain on AFS debt securities of $0.3 million in Q2- 23 ($5.8 million in the YTD period).  Portfolio remains high quality and investment grade with 86% rated AAA or AA.  Total duration on the investment portfolio totaled 4 years. Investment Portfolio Composition 4% 56%14% 16% 4% 5% US Government & Agency Agency MBS 1% MBS State and Municipal Asset-Backed Corporate Debt Other Total: $1.8B 1,812 1,749 1,765 1,955 1,931 1.90% Q2-22 2.27% Q3-22 2.83% Q4-22 3.40% Q1-23 3.47% Q2-23 Average Investments ($ millions) Yield on Investments (%) Portfolio Trends and Yield (1) Note: All data presented is as of June 30, 2023, unless otherwise noted. (1) Average investments includes restricted equity investments comprised primarily of FHLB and FRB stock. Rate Exposure: • 22% floating • 78% fixed Investment Portfolio Composition AFS HTM Equities $'millions Fair Value Duration (Yrs) Amortized Cost Duration (Yrs) Fair Value Duration (Yrs) Asset-Backed 285 (0) - - - - US Gov & Agency 66 4 - - - - Agency MBS 92 6 896 4 - - Corporate Debt 9 2 52 0 - - State and Municipal - - 249 5 - - MBS - - 25 2 - - Other - - - - 96 1 Total 452 1,222 96

. . .OCFC’s Customer Base Values Operational Support OCFC’s deposit base is highly operational and values individualized service and support. OCFC customers initiated over 43 million total transactions in 2022 for over $101 billion, turning over our June 30, 2023 deposit balance more than 10 times per year. 13.6% 30.3% 52.0% 0.2% 2.2% 1.7% 58.1% 15.8% 24.6% 0.5% 1.0%43.3 million transactions $101.5 billion Volume Dollars Wires Bill Pay eWallet Checks Cleared ACH Transactions Debit Card (Visa) Legend 1 (1) Legend applies to both volume and dollar charts.

. . .Adjusted Uninsured Deposit Bridge Detail 21 Note #1: Uninsured deposits are reported at the consolidated Bank level per the Call Report. (1) The State of NJ requires collateralization on municipal deposits and administers a backstop to protect these deposits. (2) Gross exclusions relate to intercompany deposits. Adjusted Uninsured Deposit Bridge $'millions Schedule/Line June 30, 2023 Estimated Uninsured Deposits RC-O Line M.2 5,057 Less: Collateralized Municipal Deposits1 (2,027) Less: Gross Exclusion Deposits2 (1,482) Estimated Adjusted Uninsured Deposits, net of exclusions 1,548 Total Deposits RC-O Line 1 11,716 Less: Gross Exclusion Deposits2 (1,482) Total Deposits, net of exclusions RC Line 13.a 10,234 % of Total Deposits, net of exclusions 15.1%

. . .Non-GAAP Reconciliations (1 of 2) (1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023. Non-GAAP Reconciliation For the Three Months Ended $'000 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Core Earnings: Net income available to common stockholders (GAAP) 26,793 26,879 52,268 37,607 27,957 Add (less) non-recurring and non-core items: Merger related expenses - 22 276 298 196 Branch consolidation expense (benefit), net - 70 111 (346) 546 Net loss (gain) on equity investments (1) 559 2,193 (17,187) (3,362) 8,078 Net loss on sale of investments (1) - 5,305 - - - Income tax (benefit) expense on items (162) (1,797) 4,060 824 (2,132) Core earnings (Non-GAAP) 27,190 32,672 39,528 35,021 34,645 Income tax expense 8,996 8,654 17,353 12,298 8,940 Provision for credit losses 1,229 3,013 3,647 1,016 1,254 Less: income tax (benefit) expense on non-core items (162) (1,797) 4,060 824 (2,132) Core earnings PTPP (Non-GAAP) 37,577 46,136 56,468 47,511 46,971 Core earnings diluted earnings per share 0.46 0.55 0.67 0.60 0.59 Core earnings PTPP diluted earnings per share 0.64 0.78 0.96 0.81 0.80

. . .Non-GAAP Reconciliations (2 of 2) Non-GAAP Reconciliation $'000 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Tangible Equity Total stockholders' equity 1,626,283 1,610,371 1,585,464 1,540,216 1,521,432 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 11,476 12,470 13,497 14,656 15,827 Tangible stockholders' equity 1,108,661 1,091,755 1,065,821 1,019,414 999,459 Less: Preferred Stock 55,527 55,527 55,527 55,527 55,527 Tangible common equity 1,053,134 1,036,228 1,010,294 963,887 943,932 Tangible Assets Total Assets 13,538,903 13,555,175 13,103,896 12,683,453 12,438,653 Less: Goodwill 506,146 506,146 506,146 506,146 506,146 Core deposit intangible 11,476 12,470 13,497 14,656 15,827 Tangible assets 13,021,281 13,036,559 12,584,253 12,162,651 11,916,680

Document and Entity Information	Jul. 20, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 20, 2023
Entity Registrant Name	OCEANFIRST FINANCIAL CORP.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-11713
Entity Tax Identification Number	22-3412577
Entity Address, Address Line One	110 West Front Street
Entity Address, City or Town	Red Bank
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07701
City Area Code	732
Local Phone Number	240-4500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001004702
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	OCFC
Security Exchange Name	NASDAQ
Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
Trading Symbol	OCFCP
Security Exchange Name	NASDAQ

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