QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ________________________________________________ FORM 10-Q ________________________________________________ 110 West Front Street, Red Bank, NJ 07701 (Address of principal executive offices) (Zip ...

Financial Performance - Net income available to common stockholders for Q3 2025 was $17.3 million, or $0.30 per diluted share, down from $24.1 million, or $0.42 per diluted share, in Q3 2024[2] - Core earnings for Q3 2025 were $20.3 million, or $0.36 per diluted share, down from $23.2 million, or $0.39 per diluted share, in Q3 2024[3] - Net income attributable to OceanFirst Financial Corp. for the three months ended September 30, 2025, was $17,330 thousand, a decrease of 3.8% from $19,046 thousand in the prior quarter[52] - Net income available to common stockholders (GAAP) for Q3 2025 was $17,330,000, compared to $24,112,000 in Q3 2024, representing a decrease of 28.3% year-over-year[75] - Core earnings (Non-GAAP) for Q3 2025 were $20,348,000, a slight increase from $20,349,000 in Q1 2025, but down from $23,193,000 in Q3 2024[75] - Return on average assets for Q3 2025 was 0.60%, a decrease from 0.69% in Q3 2024[75] - The company reported a return on average stockholders' equity of 4.15% for the three months ended September 30, 2025, down from 5.68% in the same period last year[71] Loan and Deposit Growth - Total loans increased by $372.9 million, representing a 14% annualized growth rate, including a 74% increase in commercial loan originations to $739.2 million[6] - Total deposits rose to $10.4 billion from $10.2 billion in the linked quarter, with a net increase of $321.2 million excluding brokered deposit run-off[6] - Total loans receivable increased to $10,557,983 million as of September 30, 2025, up from $10,185,087 million in June 2025, representing a growth of 3.66%[54] - Total deposits reached $10,435,994 million on September 30, 2025, compared to $10,232,442 million in June 2025, marking an increase of 1.98%[55] - Commercial loan originations amounted to $739,154 million for the three months ended September 30, 2025, up from $425,877 million in June 2025, reflecting a significant increase of 73.5%[54] Credit Quality - Provision for credit losses was $4.1 million for Q3 2025, compared to $517,000 in Q3 2024, driven by net loan growth[17] - Non-performing loans increased to $41.3 million, representing 0.39% of total loans, up from 0.35%[41] - The allowance for loan credit losses was 0.77% of total loans, compared to 0.73% in the prior period[41] - Provision for credit losses increased to $4,092,000 in Q3 2025 from $517,000 in Q3 2024, indicating a significant rise in expected credit losses[75] - The allowance for loan credit losses was $81,236 million, representing 0.77% of total loans receivable as of September 30, 2025[57] Operating Expenses - Operating expenses increased to $76.3 million in Q3 2025 from $63.7 million in Q3 2024, impacted by $3.9 million in non-core operations related to restructuring charges[25] - Operating expenses increased to $212.1 million for the nine months ended September 30, 2025, compared to $181.0 million for the same period in 2024, reflecting a $29.2 million increase excluding non-core operations[28] - The efficiency ratio increased to 74.13% for the three months ended September 30, 2025, compared to 65.77% in the same period last year, indicating higher operating expenses relative to income[71] Asset and Liability Management - Total assets rose by $903.4 million to $14.32 billion as of September 30, 2025, driven by a $439.9 million increase in total loans and a $434.1 million increase in debt securities available-for-sale[33] - Total liabilities increased by $952.7 million to $12.67 billion, primarily due to a $633.0 million rise in FHLB advances and a $369.7 million increase in deposits[34] - The loan-to-deposit ratio was 101.2% as of September 30, 2025, compared to 100.5% in the previous period[34] - Total liabilities increased to $12,671,237 thousand as of September 30, 2025, from $11,684,167 thousand at June 30, 2025, a growth of 8.5%[50] Shareholder Returns - The Board declared a quarterly cash dividend of $0.20 per share, marking the 115th consecutive quarterly dividend[7] - The Company repurchased 1,404,253 shares totaling $24.4 million during the nine months ended September 30, 2025[39] - Cash dividends per common share remained steady at $0.20 for the three months ended September 30, 2025, consistent with the previous quarters[72] Strategic Initiatives - The Company announced a strategic shift in its residential business, partnering with a national mortgage banking company, resulting in an 11% workforce reduction and anticipated annual expense savings of $14 million[5]

Financial Performance - Net income available to common stockholders decreased to $16,200 thousand for the quarter ended June 30, 2025, down from $23,369 thousand in the same quarter last year, representing a decline of 30.5%[15] - The diluted earnings per share for the quarter was $0.28, down from $0.40 in the same quarter last year, a decrease of 30%[1] - Net income available to common stockholders decreased to $16.2 million and $36.7 million for the three and six months ended June 30, 2025, compared to $23.4 million and $51.0 million for the same periods in 2024[30] - Interest income for the six months ended June 30, 2025 decreased to $308.5 million from $321.0 million for the corresponding prior year period[32] - Operating expenses increased to $71.5 million for the three months ended June 30, 2025, compared to $58.6 million for the same period in 2024[40] - Operating expenses increased to $135.8 million for the six months ended June 30, 2025, up from $117.3 million, primarily due to a $11.1 million rise in compensation and benefits[42] - The provision for income taxes was $12.6 million for the six months ended June 30, 2025, compared to $17.7 million for the same period in 2024, with an effective tax rate of 23.7%[43] Asset and Loan Growth - Total assets increased to $13,327,847 thousand as of June 30, 2025, compared to $13,321,755 thousand a year earlier[1] - Total loans increased by $59.8 million, reflecting a 2% annualized growth rate, with commercial and industrial loans growing by $131.7 million[17] - The commercial loan pipeline reached a record high of $790.8 million, an increase of 111% from the previous quarter[17] - Total loans increased by $67.0 million to $10.19 billion, with the loan pipeline increasing by $648.1 million to $954.8 million, driven by a $593.3 million increase in commercial loans[24] - Total loans outstanding as of June 30, 2025, were $10.19 billion, with 49.8% in investor-owned commercial real estate[63] Interest Income and Expenses - Net interest income for the quarter was $87,636 thousand, up from $82,263 thousand in the same quarter last year, marking a growth of 6.5%[1] - Net interest income for the three and six months ended June 30, 2025 increased to $87.6 million and $174.3 million, respectively, from $82.3 million and $168.5 million for the same periods in 2024[35] - The weighted average cost of non-maturity deposit accounts was 2.04%, with an average age of approximately 12.1 years[92] Capital and Liquidity - The Company maintained a stockholders' equity to total assets ratio of 12.33% as of June 30, 2025[62] - As of June 30, 2025, total on-balance sheet liquidity and funding capacity was $3.5 billion, representing 199% of estimated adjusted uninsured deposits of $1.73 billion[46][47] - The Company satisfied all regulatory capital requirements as of June 30, 2025, with a total capital to risk-weighted assets ratio of 13.56%[60] - The company's common equity tier one capital ratio declined to 10.99% due to stock repurchases and increased lending commitments[26] Non-Performing Loans and Asset Quality - Non-performing loans as a percentage of total loans receivable remained stable at 0.33%[1] - Non-performing assets increased to $41.19 million as of June 30, 2025, compared to $37.34 million at December 31, 2024, with non-performing loans as a percentage of total loans at 0.33%[70] - The allowance for loan credit losses as a percentage of total loans was 0.78% as of June 30, 2025, up from 0.73% at December 31, 2024[73] - Special mention and substandard loans decreased by $6.6 million to $153.3 million at June 30, 2025, from $159.9 million at December 31, 2024[74] - The Bank's delinquent loans (30-89 days) decreased to $14.74 million from $36.55 million, indicating improved asset quality[73] Dividend and Share Repurchase - The Company declared a quarterly cash dividend of $0.20 per share, consistent with the previous quarter[16] - Cash dividends on common stock declared and paid during the six months ended June 30, 2025, were $23.3 million[55] - The Company repurchased 1,401,945 shares of common stock for a total of $24.3 million during the six months ended June 30, 2025[54] Interest Rate Risk Management - The Company actively manages interest rate risk (IRR) through strategies such as managing loan origination and retention, emphasizing stable deposits, and utilizing interest rate swaps[90] - The Asset Liability Committee (ALCO) regularly reviews the Company's IRR position and trends, reporting to the Board[89] - The Company’s interest rate sensitivity is monitored using an IRR model that measures changes in EVE and net interest income under various interest rate scenarios[91] - The Company reported a decrease in Economic Value of Equity (EVE) by 3.7% under a 300 basis point increase in interest rates as of June 30, 2025, compared to a 6.2% decrease as of December 31, 2024[94] - A shift in deposit mix within non-maturity deposits into lower betas contributed to a decrease in EVE at risk in both rising and falling rate scenarios from December 31, 2024, to June 30, 2025[95] Commercial Real Estate Loans - The Bank's investor-owned commercial real estate loans are highly diversified across various property types, with the largest sector being retail at 23% of total loans[68] - The Bank's total commercial real estate - investor owned loans by geography showed New York at 31%, Pennsylvania and Delaware at 28%, and New Jersey at 26% as of June 30, 2025[69] - The weighted average loan-to-value (LTV) ratio for total investor-owned commercial real estate loans was 55% with a coverage ratio of 1.8x as of June 30, 2025[68] - The weighted average debt service coverage ratio for office loans was 1.9x, with a weighted average LTV of 48% as of June 30, 2025[68] - The Company performed extensive due diligence in underwriting commercial real estate loans, including tenant and market analysis to mitigate risks[66]

Press Release Exhibit 99.1 Company Contact: Patrick S. Barrett Chief Financial Officer OceanFirst Financial Corp. Tel: (732) 240-4500, ext. 27507 Email: pbarrett@oceanfirst.com FOR IMMEDIATE RELEASE OCEANFIRST FINANCIAL CORP. ANNOUNCES SECOND QUARTER FINANCIAL RESULTS RED BANK, NEW JERSEY, July 24, 2025 - 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 $16.2 million, or $0.28 per dil ...

PART I. FINANCIAL INFORMATION Provides unaudited consolidated financial statements and management's discussion and analysis for the first quarter of 2025 [Item 1. Consolidated Financial Statements (unaudited)](index=18&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) Presents unaudited consolidated financial statements, including financial condition, income, cash flows, and detailed notes [Consolidated Statements of Financial Condition](index=20&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Details assets, liabilities, and equity, with **$13.31 billion** in assets and **$11.60 billion** in liabilities Consolidated Statements of Financial Condition (Selected Items) | (in millions) | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$13,309.3** | **$13,421.2** | | Loans receivable, net | $10,058.1 | $10,055.4 | | Debt securities (AFS & HTM) | $1,751.6 | $1,873.4 | | Goodwill | $523.3 | $523.3 | | **Total Liabilities** | **$11,600.2** | **$11,718.5** | | Deposits | $10,177.0 | $10,066.3 | | FHLB advances | $891.0 | $1,072.6 | | **Total Stockholders' Equity** | **$1,709.1** | **$1,702.8** | [Consolidated Statements of Income](index=21&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 **net income** was **$21.5 million**, down from **$28.7 million** in Q1 2024, with diluted EPS at **$0.35** Consolidated Statements of Income (Three Months Ended March 31) | (in millions, except per share) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net interest income | $86.7 | $86.2 | | Provision for credit losses | $5.3 | $0.6 | | Total other income | $11.3 | $12.3 | | Total operating expenses | $64.3 | $58.7 | | **Net income attributable to OCFC** | **$21.5** | **$28.7** | | **Diluted earnings per share** | **$0.35** | **$0.47** | [Consolidated Statements of Cash Flows](index=24&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw **$1.8 million** net cash used in operations, resulting in a **$40.1 million** net cash increase Cash Flow Summary (Three Months Ended March 31) | (in millions) | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1.8) | $46.1 | | Net cash provided by investing activities | $123.6 | $120.6 | | Net cash used in financing activities | $(81.7) | $(190.0) | | **Net increase (decrease) in cash** | **$40.1** | **$(23.3)** | [Notes to Unaudited Consolidated Financial Statements](index=26&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed disclosures on accounting policies, loan portfolios, credit quality, fair value, and derivatives - At March 31, 2025, the company reclassified loans secured by owner-occupied commercial real estate to a new 'Commercial and industrial - real estate' category to better reflect their risk profile[107](index=107&type=chunk) - The allowance for credit losses on loans increased to **$78.8 million** at March 31, 2025, from **$73.6 million** at year-end 2024, with a provision of **$5.8 million** for the quarter[133](index=133&type=chunk) - The company holds interest rate swap and cap contracts with a total notional amount of **$1.61 billion** as of March 31, 2025, primarily to accommodate customer needs and manage interest rate risk[185](index=185&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=4&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q1 2025 financial condition and results, highlighting margin expansion, loan growth, and credit quality [Financial Summary](index=4&type=section&id=Financial%20Summary) Q1 2025 **net income** decreased to **$21.5 million**, but **net interest margin** expanded to **2.90%** with stable credit Selected Financial Data (Q1 2025 vs. Q4 2024 & Q1 2024) | (dollars in millions, except per share) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total assets | $13,309.3 | $13,421.2 | $13,419.0 | | Deposits | $10,177.0 | $10,066.3 | $10,236.9 | | Net interest income | $86.7 | $83.3 | $86.2 | | Net income | $21.5 | $22.2 | $28.6 | | Diluted earnings per share | $0.35 | $0.36 | $0.47 | | Net interest margin | 2.90% | 2.69% | 2.81% | - Key developments in Q1 2025 included margin expansion driven by lower deposit costs, a **6.1% increase** in commercial and industrial loans compared to the linked quarter, and a **$5.3 million** provision for credit losses[19](index=19&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.20 per common share** and announced the intention to redeem all outstanding Series A Preferred Stock on May 15, 2025[18](index=18&type=chunk) [Analysis of Net Interest Income](index=6&type=section&id=Analysis%20of%20Net%20Interest%20Income) Q1 2025 **net interest income** rose to **$86.7 million**, with **net interest margin** expanding to **2.90%** due to lower deposit costs Net Interest Margin Analysis (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average Yield on Interest-Earning Assets | 5.13% | 5.26% | | Average Cost of Interest-Bearing Liabilities | 2.78% | 3.03% | | Net Interest Rate Spread | 2.35% | 2.23% | | Net Interest Margin | 2.90% | 2.81% | | Total Cost of Deposits | 2.06% | 2.31% | [Comparison of Financial Condition at March 31, 2025 and December 31, 2024](index=8&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031%2C%202025%20and%20December%2031%2C%202024) Total assets decreased to **$13.31 billion**, with deposits increasing and FHLB advances decreasing - Total assets decreased by **$112.0 million**, primarily due to principal reductions, maturities, and calls on debt securities[25](index=25&type=chunk) - Deposits increased by **$110.7 million**, while FHLB advances decreased by **$181.6 million**, indicating a shift in funding mix. The loan-to-deposit ratio improved to **99.5%** from **100.5%**[26](index=26&type=chunk) - The company repurchased **398,395 shares** for **$6.9 million** during the quarter. Book value per share increased to **$29.27** from **$29.08**[28](index=28&type=chunk) [Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024](index=8&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%20March%2031%2C%202024) Q1 2025 **net income** decreased to **$20.5 million**, driven by higher credit loss provision and operating expenses - Net income available to common stockholders decreased to **$20.5 million** (**$0.35/share**) from **$27.7 million** (**$0.47/share**) in the prior year period[29](index=29&type=chunk) - Provision for credit losses increased to **$5.3 million**, compared to **$0.6 million** in Q1 2024, primarily driven by macroeconomic uncertainty[33](index=33&type=chunk) - Operating expenses increased by **$5.6 million**, primarily due to a **$4.0 million** rise in compensation and benefits from prior year acquisitions and annual merit increases[35](index=35&type=chunk) [Liquidity and Capital Resources](index=9&type=section&id=Liquidity%20and%20Capital%20Resources) Maintains strong liquidity with **$3.4 billion** in funding capacity and capital ratios above 'well-capitalized' levels - Total on-balance sheet liquidity and funding capacity was **$3.4 billion** as of March 31, 2025[39](index=39&type=chunk) - Estimated adjusted uninsured deposits were **$1.75 billion**, or **17%** of total deposits. Liquidity and funding capacity covered these uninsured deposits by **191%**[40](index=40&type=chunk) Regulatory Capital Ratios (Company) - March 31, 2025 | Ratio | Actual | Required for Capital Adequacy* | | :--- | :--- | :--- | | Common equity Tier 1 (to risk-weighted assets) | 11.24% | 7.00% | | Tier 1 capital (to risk-weighted assets) | 12.56% | 8.50% | | Total capital (to risk-weighted assets) | 14.64% | 10.50% | | Tier 1 capital (to average assets) | 9.73% | 4.00% | *Includes Capital Conservation Buffer of 2.50% [Lending Activities](index=14&type=section&id=Lending%20Activities) Total loans reached **$10.13 billion**, maintaining stable asset quality with non-performing loans at **0.37%** - The loan portfolio is composed of **51.4%** investor-owned CRE, **16.3%** commercial and industrial, **30.2%** residential real estate, and **2.2%** consumer loans[56](index=56&type=chunk) Asset Quality Metrics | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-performing loans as a % of total loans | 0.37% | 0.35% | | Non-performing assets as a % of total assets | 0.29% | 0.28% | | Allowance for loan credit losses as a % of total loans | 0.78% | 0.73% | | Allowance for loan credit losses as a % of non-performing loans | 213.14% | 207.19% | - Special mention and substandard assets decreased by **$8.7 million** to **$151.2 million** from the previous quarter[68](index=68&type=chunk) [Critical Accounting Policies and Estimates](index=16&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Allowance for credit losses and goodwill are critical estimates, with no goodwill impairment triggering events identified - The determination of the allowance for credit losses is a critical accounting policy requiring subjective judgments and estimates[70](index=70&type=chunk) - Goodwill was also a critical accounting estimate. No triggering events for impairment were identified during the period. The annual goodwill impairment assessment is typically performed in the third quarter[71](index=71&type=chunk)[73](index=73&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Manages interest rate risk, showing modest asset sensitivity with projected NII increases in rising rate scenarios Interest Rate Sensitivity Analysis (March 31, 2025) | Change in Interest Rates (Basis Points) | Economic Value of Equity (% Change) | Net Interest Income (% Change) | | :--- | :--- | :--- | | +300 | (2.3)% | (0.6)% | | +200 | (0.7)% | 0.2% | | +100 | (0.1)% | 0.4% | | (100) | (1.4)% | (1.0)% | | (200) | (4.8)% | (2.3)% | | (300) | (10.0)% | (3.5)% | - The company's net interest income sensitivity indicates it was modestly asset sensitive at March 31, 2025. The change in sensitivity from the prior quarter was impacted by an increase in floating-rate loans and a favorable deposit mix shift, partially offset by an increase in overnight borrowings[86](index=86&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[89](index=89&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[90](index=90&type=chunk) PART II. Other Information Provides information on legal proceedings, risk factors, equity sales, other disclosures, and exhibits [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) No material pending legal proceedings beyond routine matters in the ordinary course of business - The Company and its bank subsidiary are not involved in any material pending legal proceedings outside of the ordinary course of business[198](index=198&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors since the 2024 Form 10-K filing - No material changes to the Company's risk factors have occurred since the filing of the 2024 Form 10-K[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Repurchased **322,337 shares** in Q1 2025, with **1,228,863 shares** remaining for repurchase Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | $— | | February 2025 | 13,704 | $17.89 | | March 2025 | 308,633 | $16.97 | - As of March 31, 2025, **1,228,863 shares** were available for repurchase under the authorized stock repurchase program[200](index=200&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[204](index=204&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including executive agreements, CEO/CFO certifications, and XBRL data

Financial Performance - Net income available to common stockholders for Q1 2025 was $20.5 million, or $0.35 per diluted share, down from $27.7 million, or $0.47 per diluted share, in Q1 2024[2] - Core earnings for Q1 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, in the prior year[3] - Net income attributable to OceanFirst Financial Corp. for the three months ended March 31, 2025, was $21.509 million, a decrease from $21.909 million in the previous quarter[45] - Basic earnings per share for the quarter was $0.35, consistent with the previous quarter's earnings per share of $0.36[45] - For the three months ended March 31, 2025, net income available to common stockholders was $20,505,000, a decrease from $27,663,000 in the same period last year[67] - Core earnings (Non-GAAP) for the quarter were $20,349,000, compared to $25,638,000 in the same quarter last year[67] Interest Income and Margin - Total interest income for the three months ended March 31, 2025, was $153.703 million, a decrease of 3.7% from $159.620 million in the previous quarter[45] - Net interest income increased by $3.3 million to $86.7 million, with net interest margin rising 21 basis points to 2.90%[6] - Net interest income after provision for credit losses was $81.312 million, compared to $79.862 million in the previous quarter, reflecting a 1.8% increase[45] - The average yield on total loans was 7.18% for the three months ended March 31, 2025, compared to 7.21% in the previous quarter[47] - Total interest-earning assets amounted to $12,112,028, with a net interest margin of 2.90% for the first quarter of 2025[60] - The average yield on interest-earning assets was 5.13% for the first quarter of 2025, down from 5.15% in the previous quarter[60] Assets and Liabilities - Total assets decreased by $112.0 million to $13.31 billion, primarily due to decreases in total debt securities[25] - Total liabilities decreased by $118.3 million to $11.60 billion, with deposits increasing by $110.7 million to $10.18 billion[27] - Total assets as of March 31, 2025, were $13,311,893, a decrease from $13,545,052 as of December 31, 2024[62] - Total liabilities were $11,596,759 as of March 31, 2025, compared to $11,841,726 as of December 31, 2024[62] - Total assets decreased to $13,309,278 million from $13,418,978 million a year ago, indicating a decline of 0.8%[69] - Tangible assets amounted to $12,774,230 million, down from $12,904,163 million, showing a decrease of 1.0% year-over-year[69] Loans and Credit Quality - Provision for credit losses was $5.3 million, reflecting a net loan reserve build of $5.2 million due to macroeconomic uncertainty[6] - Non-performing loans increased to $37.0 million, representing 0.37% of total loans, while the allowance for loan credit losses was 213.14% of total non-performing loans[31] - The allowance for loan credit losses increased to $78.798 million as of March 31, 2025, compared to $73.607 million at the end of the previous quarter[47] - Total non-performing loans increased to $36,970 million as of March 31, 2025, up from $35,527 million in the previous quarter, representing a 4.1% increase[51] - Delinquent loans (30 to 89 days) increased to $46,246 million, up from $36,550 million in the previous quarter, indicating a 26.5% rise[51] - The level of 30 to 89 days delinquent loans rose to $46.2 million, primarily related to commercial loans[31] Capital and Equity - Capital levels remained strong, with the common equity tier one capital ratio at 11.2%[28] - Total stockholders' equity increased to $1.71 billion from $1.70 billion, reflecting net income and offset by capital returns of dividends and share repurchases[29] - Tangible common equity rose by $7.3 million to $1.12 billion, with a stockholders' equity to assets ratio of 12.84% as of March 31, 2025[30] - Book value per common share increased to $29.27 from $29.08, and tangible book value per common share increased to $19.16 from $18.98[30] - Total stockholders' equity increased to $1,709,117 million as of March 31, 2025, up from $1,665,837 million a year earlier, representing a growth of 2.6%[69] - Tangible common equity reached $1,118,542 million, reflecting an increase from $1,095,495 million year-over-year, which is a rise of 2.1%[69] Future Outlook and Events - The Company plans to host an earnings conference call on April 25, 2025, to discuss financial results and future outlook[37] - The Annual Meeting of Stockholders is scheduled for May 19, 2025, with a record date of March 25, 2025[36]

Credit Losses and Allowances - The Bank's loan allowance for credit losses (ACL) as a percentage of total loans increased to 0.73% in 2024 from 0.66% in 2023[76]. - The total charge-offs for 2024 were $2.22 million, a decrease from $8.69 million in 2023[77]. - The provision for credit losses for 2024 was $5.48 million, down from $18.70 million in 2023[77]. - The net charge-offs for 2024 were $1.56 million, representing 0.02% of average net loans outstanding, compared to $8.38 million or 0.08% in 2023[78]. - The Bank's total ACL at the end of 2024 was $73.61 million, up from $67.14 million in 2023[79]. - The commercial real estate - investor category accounted for 41.8% of the total ACL in 2024, with an amount of $30.78 million[79]. Deposits and Funding - As of December 31, 2024, total deposits decreased by $368.6 million to $10.07 billion from $10.43 billion in the prior year, primarily due to a planned runoff of brokered time deposits[90]. - The Bank's total uninsured deposits increased to $5.75 billion as of December 31, 2024, compared to $5.32 billion in 2023, with adjusted uninsured deposits representing 16.5% of total deposits[91]. - The Bank's average deposits for the year ended December 31, 2024, were $10.26 billion, with an average rate paid of 2.36%[92]. - The Bank had $1.07 billion in outstanding advances from the FHLB as of December 31, 2024[89]. - The Company pledged $7.43 billion of loans with the FHLB and the FRB to enhance borrowing capacity as of December 31, 2024[94]. - The Bank's time deposits in amounts of $250,000 or more totaled $457.2 million, with a weighted average rate of 4.47%[92]. Acquisitions and Investments - The Company completed the acquisition of Spring Garden on October 1, 2024, for a total consideration of $162.7 million, which included $17.2 million in goodwill[97]. - The Bank's acquisition of Spring Garden Capital Group, LLC on October 1, 2024, aims to expand its specialty finance offerings[103]. - Equity investments held by the Company decreased to $84.1 million as of December 31, 2024, down from $100.2 million in 2023[88]. - The Bank's investment in FHLB New York stock was $68.4 million in 2024, up from $53.7 million in 2023[165]. - The Bank's investment in Federal Reserve Bank of Philadelphia stock was $39.8 million in 2024, slightly up from $39.7 million in 2023[166]. - The Federal Reserve Bank of Philadelphia paid dividends of $1.7 million for 2024, compared to $1.6 million in the prior year[167]. Capital and Regulatory Compliance - At December 31, 2024, the Company exceeded all regulatory capital requirements, with Tier 1 capital to average assets at 9.50%, Common equity Tier 1 to risk-weighted assets at 11.17%, and Total capital to risk-weighted assets at 14.52%[127]. - The Company is required to maintain a capital conservation buffer of 2.50% above the minimum risk-based capital requirements[141]. - The Bank's capital position indicates it is classified as well-capitalized under federal regulations[144]. - The Bank incurred total deposit insurance assessment expenses of $9.7 million in 2024, slightly down from $9.9 million in 2023[153]. - A special assessment of $418,000 was incurred in 2024 due to FDIC regulations, compared to $1.7 million in 2023[153]. - The Bank was in compliance with the loans-to-one borrower limitations as of December 31, 2024[154]. Employee and Talent Management - The Company has a total of 1,031 employees, with approximately 67% being female and an average tenure of over seven years as of December 31, 2024[104]. - The Bank's talent acquisition strategy emphasizes internal promotions and external hires, with a focus on developing talent from within[107]. - The Company maintains competitive total rewards programs, including annual bonuses, stock ownership plans, and health benefits, to attract and retain talent[105]. - The Company is committed to maintaining a workforce that reflects the communities it serves, supported by internship and entry-level development programs[108]. Community Engagement and Performance - The Bank received a CRA Performance Evaluation rating of "Outstanding" for the evaluation period from 2021 to 2023[161]. - The Bank committed to invest at least $14 million in a mortgage loan subsidy fund over five years as part of settlement agreements with the DOJ and HUD[163]. - Since 2020, the Bank has provided over $625 million in loans and investments benefiting thousands in the communities it serves[164]. Interest Rate Sensitivity and Economic Value - The Company reported a decrease in Economic Value of Equity (EVE) sensitivity across all interest rate scenarios from December 31, 2023, to December 31, 2024[379]. - The net interest income sensitivity results at December 31, 2024 were modestly asset sensitive to neutral compared to the prior year[378]. - The weighted average cost of non-maturity deposit accounts was 1.64% with an average age of approximately 11 years[376]. Regulatory Changes - The EGRRCPA increased the asset threshold for stress tests from $10 billion to $250 billion, providing regulatory relief to institutions with $10 billion or more in assets[121]. - The Dodd-Frank Act requires a reasonable determination of a borrower's ability to repay mortgage loans, impacting lending practices[119]. - The Bank's assessments paid to the OCC totaled $1.3 million for 2024 and $1.2 million for 2023, with a 2.65% increase in marginal rates for 2025[157]. - The FDIC's special assessment will be collected over an initial eight quarterly assessment periods starting from January 1, 2024[149]. - The Company may face restrictions on capital distributions if it fails to meet regulatory capital requirements[156].

Financial Performance - Net income available to common stockholders for Q4 2024 was $20.9 million, or $0.36 per diluted share, down from $26.7 million, or $0.46 per diluted share in Q4 2023[2]. - Core earnings for Q4 2024 were $22.1 million, or $0.38 per diluted share, compared to $26.3 million, or $0.45 per diluted share in Q4 2023[3]. - Net income attributable to OceanFirst Financial Corp. was $21,909 thousand for the three months ended December 31, 2024, a decrease from $25,116 thousand in the previous quarter and $27,682 thousand in the same quarter last year[47]. - Basic earnings per share decreased to $0.36 for the three months ended December 31, 2024, down from $0.42 in the previous quarter and $0.46 in the same quarter last year[47]. - Core diluted earnings per share for Q4 2024 were $0.38, down from $0.45 in Q4 2023[70]. - The company reported a net income available to common stockholders of $96,049 million in 2024, down from $100,013 million in 2023, a decrease of about 4.0%[71]. Income and Expenses - Net interest income decreased to $83.3 million in Q4 2024 from $87.8 million in Q4 2023, with net interest margin declining to 2.69% from 2.82%[8]. - Operating expenses for Q4 2024 rose to $64.8 million from $60.2 million in Q4 2023, impacted by merger-related expenses[24]. - Total operating expenses for the year ended December 31, 2024, were $245,877 thousand, slightly down from $248,912 thousand for the year ended December 31, 2023[47]. - Interest expense increased to $76,291 thousand in Q4 2024 from $72,610 thousand in Q4 2023, marking a rise of 5.8%[64]. - The provision for credit losses was $3,467 thousand for the three months ended December 31, 2024, compared to $517 thousand in the previous quarter and $3,153 thousand in the same quarter last year[47]. Assets and Liabilities - Total assets decreased by $117.0 million to $13.42 billion, primarily due to decreases in loans and securities[31]. - Total liabilities decreased to $11,718,490 thousand as of December 31, 2024, from $11,793,975 thousand at September 30, 2024, and $11,876,308 thousand at December 31, 2023[45]. - Total deposits decreased to $10,066,342 thousand as of December 31, 2024, from $10,116,167 thousand at September 30, 2024, and $10,434,949 thousand at December 31, 2023[45]. - Total assets as of December 31, 2024, were $13,545,052,000, compared to $13,593,107,000 at the end of 2023[67]. - Total borrowings as of December 31, 2024, were $1,328,016,000, compared to $1,016,722,000 in 2023[67]. Loans and Credit Quality - Loan growth for Q4 2024 was $95.9 million, or 4% annualized, with originations increasing by 20% to $515.2 million[6]. - Non-performing loans increased to $35.5 million from $29.5 million, representing 0.35% of total loans[36]. - The allowance for loan credit losses was $73,607, which is 0.73% of total loans receivable as of December 31, 2024[53]. - Commercial loan originations for the quarter were $268,613, up from $245,886 in the previous quarter, reflecting an increase of 9.3%[49]. - The provision for credit losses was $2,041 thousand in Q4 2024, compared to $3,153 thousand in Q4 2023, indicating a reduction of 35.4%[64]. Shareholder Returns - The company declared a quarterly cash dividend of $0.20 per share, marking the 112th consecutive quarterly dividend[5]. - The Company repurchased 1,383,238 shares totaling $21.5 million at a weighted average cost of $15.38 during the year[34]. Efficiency and Ratios - Efficiency ratio for Q4 2024 was 67.86%, an increase from 60.38% in Q4 2023[66]. - Return on average assets for the year ended December 31, 2024, was 0.71%, slightly down from 0.74% in 2023[66]. - Return on average tangible common equity for Q4 2024 was 7.47%, down from 9.81% in Q4 2023[66]. - The net interest margin decreased to 2.72% from 3.02% year-over-year, indicating a decline in profitability from interest-earning assets[62]. - Efficiency ratio increased to 64.57% in 2024 from 60.61% in 2023, suggesting a decline in operational efficiency[71].

Financial Performance - Net income available to common stockholders rose to $24.1 million for the quarter, up from $19.7 million in the same period last year, resulting in diluted earnings per share of $0.42[17] - Net income available to common stockholders for the three months ended September 30, 2024, increased to $24.1 million, or $0.42 per diluted share, compared to $19.7 million, or $0.33 per diluted share, for the same period in 2023[30] - Net interest income was stable at $82.2 million, compared to $82.3 million in the prior linked quarter[19] - Net interest income decreased to $82.2 million and $250.7 million for the three and nine months ended September 30, 2024, down from $91.0 million and $281.9 million in the same prior year periods[35] - Other income for the three months ended September 30, 2024 increased to $14.7 million, compared to $10.8 million in the same prior year period, driven by net gains on equity investments and a gain on sale of a portion of the Company's trust business[37] Assets and Liabilities - Total assets increased to $13.49 billion as of September 30, 2024, compared to $13.32 billion in the previous quarter[10] - Total assets decreased by $49.8 million to $13.49 billion as of September 30, 2024, primarily due to a decrease in total loans[26] - Total liabilities decreased by $82.3 million to $11.79 billion, mainly due to lower deposits[27] - Total stockholders' equity increased to $1.69 billion, reflecting net income and partially offset by capital returns[29] - The Company maintained a stockholders' equity to total assets ratio of 12.56% as of September 30, 2024, compared to 12.28% as of December 31, 2023[60] Loans and Deposits - Total deposits increased by $122.2 million to $10.1 billion, with a loan-to-deposit ratio of 99%[19] - Total loans decreased by $172.4 million to $10.02 billion, with a significant reduction in the commercial portfolio by $188.4 million driven by loan payoffs[26] - Loan originations increased by $206.4 million to $430.9 million, primarily in commercial loans[26] - Deposits decreased by $318.8 million to $10.12 billion, with high-yield savings accounts decreasing by $326.9 million[27] - The loan-to-deposit ratio increased to 99.1%, compared to 97.7%[27] Asset Quality - Non-performing loans decreased by $5.3 million to $28.1 million, representing 0.28% of total loans receivable[19] - Non-performing loans represented 0.28% of total loans as of September 30, 2024, a slight decrease from 0.29% as of December 31, 2023[69] - The allowance for loan credit losses was 0.69% of total loans as of September 30, 2024, up from 0.66% as of December 31, 2023[69] - Total non-performing loans and assets decreased to $28.1 million as of September 30, 2024, from $29.5 million as of December 31, 2023[67] - The Company reported a decrease in delinquent loans (30-89 days) to $15.5 million from $19.2 million[69] Capital and Dividends - The common equity tier one capital ratio increased to 11.3%, up approximately 40 basis points from December 31, 2023[28] - The Company declared a quarterly cash dividend of $0.20 per share, to be paid on November 15, 2024[18] - Cash dividends on common stock declared and paid during the first nine months of 2024 were $35.2 million[54] Operating Efficiency - The efficiency ratio increased to 65.77% from 62.86% in the previous quarter, indicating higher operating expenses relative to income[10] - Operating expenses decreased to $63.7 million for the three months ended September 30, 2024, down from $64.5 million in the same prior year period, despite merger-related expenses[39] Regulatory and Accounting Changes - The Company adopted ASU 2022-03 in 2024, which clarified that contractual restrictions on equity securities do not affect fair value measurement, with no material impact on financial statements[76] - The adoption of ASU 2023-02 in 2024 allows for tax equity investments to be accounted for using the proportional amortization method, also with no material impact[77] - The Company does not expect ASU 2023-05, effective January 1, 2025, to materially impact consolidated financial statements regarding joint venture formations[78] - ASU 2023-07, effective after December 15, 2023, requires improved segment reporting disclosures, with the Company currently assessing its impact[79] Risk Management - The Company reported a modest asset sensitivity as of September 30, 2024, with net interest income sensitivity results indicating a change due to various factors[90] - Interest rate risk management strategies include managing loan origination and retention, emphasizing stable deposits, and utilizing interest rate swaps[85] - The Company acknowledges inherent shortcomings in its interest rate risk measurement methodology, which may oversimplify actual market responses[92]

Financial Performance - Net income available to common stockholders for the quarter was $23,369 thousand, down from $27,663 thousand in the prior quarter, representing a decrease of 15.5%[10] - Diluted earnings per share decreased to $0.40 for the quarter ended June 30, 2024, compared to $0.47 in the previous quarter[10] - Net income available to common stockholders for Q2 2024 decreased to $23.4 million, or $0.40 per diluted share, compared to $26.8 million, or $0.45 per diluted share in Q2 2023[28] - Operating expenses for the three months ended June 30, 2024 decreased to $58.6 million from $62.9 million, and for the six months ended June 30, 2024, they decreased to $117.3 million from $124.2 million, reflecting cost management initiatives[36][37] Asset and Liability Management - Total assets decreased to $13,321,755 thousand as of June 30, 2024, from $13,418,978 thousand in the previous quarter[10] - Total liabilities decreased by $231.2 million to $11.65 billion, primarily due to lower deposits[25] - Stockholders' equity increased to $1.68 billion, reflecting net income and share repurchases[27] - The Company maintained a stockholders' equity to total assets ratio of 12.59% as of June 30, 2024, compared to 12.28% as of December 31, 2023[55] Loan and Credit Quality - The provision for credit losses increased to $3,114 thousand from $591 thousand in the prior quarter, reflecting additional charge-offs[10] - Non-performing loans as a percentage of total loans receivable remained low at 0.33% as of June 30, 2024, compared to 0.35% in the previous quarter[10] - Total loans decreased by $175.3 million to $10.02 billion, with a significant reduction in the commercial portfolio by $165.3 million[24] - The allowance for loan credit losses was 0.69% of total loans as of June 30, 2024, compared to 0.66% as of December 31, 2023[64] Interest Income and Expense - Net interest income for the quarter was $82,263 thousand, down from $86,224 thousand in the previous quarter[10] - Interest income for the three and six months ended June 30, 2024 increased to $159.4 million and $321.0 million, respectively, compared to $150.1 million and $289.1 million for the same prior year periods, with a yield on average interest-earning assets rising to 5.25%[30] - Interest expense for the three and six months ended June 30, 2024 increased to $77.2 million and $152.5 million, respectively, from $58.0 million and $98.2 million in the corresponding prior year periods, driven by higher costs of interest-bearing liabilities[31] Capital Ratios - The common equity tier 1 capital ratio was reported at 11.2%, an increase of approximately 20 basis points from the prior linked quarter[17] - The company's common equity tier one capital ratio increased to 11.23%, up approximately 35 basis points from December 31, 2023[26] - The Company’s Tier 1 capital to risk-weighted assets ratio was 12.56% as of June 30, 2024, exceeding the required 8.50%[54] - The total capital to risk-weighted assets ratio was 14.56% as of June 30, 2024, above the required 10.50%[54] Shareholder Returns - The Company repurchased 338,087 shares totaling $5,000 thousand, with 1,638,524 shares remaining available for repurchase[17] - Cash dividend per share remained stable at $0.20 for the quarter ended June 30, 2024[16] - Cash dividends on common stock declared and paid during the first six months of June 30, 2024 were $23.6 million, with an additional $2.0 million for preferred stock[50] Regulatory and Accounting Changes - The Company did not identify any triggering events for goodwill impairment during the reporting period[69] - The adoption of ASU 2022-03 did not have a material impact on the Company's consolidated financial statements[70] - The Company expects no material impact from the adoption of ASU 2023-02 on its consolidated financial statements[71] - The Company does not anticipate a material impact from ASU 2023-05 on its consolidated financial statements[72] Risk Management - The Company actively manages interest rate risk through various strategies, including managing loan origination and deposit structures[79] - The Company utilizes an interest rate risk model to measure changes in EVE and net interest income under various interest rate scenarios[80] - The net interest income sensitivity results indicate that as of June 30, 2024, the Company was modestly asset sensitive[83]