OceanFirst Financial (OCFC) - 2025 Q2 - Quarterly Results

Executive Summary / Financial Highlights This section provides an overview of OceanFirst Financial Corp.'s financial performance and key developments for Q2 and H1 2025, including GAAP and non-GAAP metrics Overall Performance OceanFirst Financial Corp. reported a year-over-year decrease in net income and diluted EPS for Q2 and H1 2025, while net interest income and net interest margin increased, and declared its 114th consecutive quarterly cash dividend Net Income and Diluted EPS (GAAP) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Net Income | $16.2 | $23.4 | -30.77 | | Diluted EPS | $0.28 | $0.40 | -30.00 | Net Income and Diluted EPS (GAAP) | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Net Income | $36.7 | $51.0 | -28.04 | | Diluted EPS | $0.63 | $0.87 | -27.59 | - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 114th consecutive dividend[6] Key Performance Ratios In Q2 2025, the company experienced a year-over-year decline in several key performance ratios, including return on average assets and equity, with an increase in efficiency ratio, but an improvement in net interest margin Key Performance Ratios (Annualized) | Metric | Q2 2025 (%) | Q1 2025 (%) | Q2 2024 (%) | | :--- | :--- | :--- | :--- | | Return on Average Assets | 0.49 | 0.62 | 0.70 | | Return on Average Shareholders' Equity | 3.86 | 4.85 | 5.61 | | Return on Average Tangible Shareholders' Equity (a) | 5.66 | 7.05 | 8.10 | | Efficiency Ratio | 71.93 | 65.67 | 62.86 | | Net Interest Margin | 2.91 | 2.90 | 2.71 | Key Performance Ratios (Annualized) | Metric | H1 2025 (%) | H1 2024 (%) | | :--- | :--- | :--- | | Return on Average Assets | 0.56 | 0.76 | | Return on Average Shareholders' Equity | 4.36 | 6.13 | | Return on Average Tangible Shareholders' Equity (a) | 6.36 | 8.86 | | Efficiency Ratio | 68.82 | 61.17 | | Net Interest Margin | 2.91 | 2.76 | Core Earnings Performance Core earnings and pre-tax pre-provision (PTPP) core earnings both decreased year-over-year in Q2 and H1 2025, with core ratios showing similar trends to GAAP ratios Core Earnings (Non-GAAP) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Core Earnings | $17.7 | $22.7 | -22.03 | | Diluted Core EPS | $0.31 | $0.39 | -20.51 | Core Earnings (Non-GAAP) | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Core Earnings | $38.0 | $48.3 | -21.32 | | Diluted Core EPS | $0.66 | $0.83 | -20.48 | Core PTPP Earnings (Non-GAAP) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Core PTPP Earnings | $26.4 | $32.7 | -19.27 | | Diluted Core PTPP EPS | $0.46 | $0.56 | -17.86 | Core PTPP Earnings (Non-GAAP) | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Core PTPP Earnings | $58.8 | $68.9 | -14.66 | | Diluted Core PTPP EPS | $1.02 | $1.18 | -13.56 | - Core earnings and PTPP (pre-tax pre-provision) are non-GAAP financial measures that exclude non-core items related to acquisitions, equity investments, trust business sale, FDIC special assessment, and preferred stock redemption, used to assess operating performance[4] Recent Quarter Key Developments This quarter saw progress in loan growth, new business expansion, and capital management, with strong commercial loan performance, preferred stock redemption, and share repurchases completed - Total loans increased by $59.8 million, an annualized growth rate of 2%, with commercial and industrial loans growing by $131.7 million; commercial loan pipeline reached a record $790.8 million, up 111% from the prior quarter[5] - Premier Banking launched in mid-April, establishing approximately 200 new client relationships and generating $115 million in new deposits in its initial operational period[5] - Repurchased 1,003,550 shares during the quarter and redeemed all preferred stock; book value per share decreased by $0.63 to $28.64, while tangible book value per share increased by $0.18 to $19.34[6] Results of Operations This section details the company's financial performance, including net interest income, credit loss provisions, non-interest income, non-interest expenses, and income tax for the reported periods Net Interest Income and Net Interest Margin The company achieved year-over-year growth in net interest income and net interest margin in Q2 and H1 2025, primarily due to a greater decline in funding costs than in earning asset yields, also showing slight sequential growth Three months ended June 30, 2025 vs. June 30, 2024 This subsection compares the company's net interest income and margin performance for the second quarter of 2025 against the same period in 2024, highlighting key drivers - Net interest income increased to $87.6 million from $82.3 million in the prior year quarter, primarily reflecting the net impact of a declining interest rate environment[8] - Net interest margin increased from 2.71% to 2.91%, mainly due to a greater decline in funding costs than in the average earning asset yield[8] - Average earning assets decreased by $138.2 million, primarily due to a reduction in securities, partially offset by an increase in residential loans; average earning asset yield decreased from 5.25% to 5.14%[9] - Average cost of interest-bearing liabilities decreased from 3.14% to 2.77%, driven by lower deposit costs; total cost of deposits decreased by 31 basis points to 2.06%[10] Six months ended June 30, 2025 vs. June 30, 2024 This subsection compares the company's net interest income and margin performance for the first half of 2025 against the same period in 2024, focusing on year-to-date trends - Net interest income increased to $174.3 million from $168.5 million in the prior year period, with net interest margin increasing from 2.76% to 2.91%[11] - Average earning assets decreased by $185.8 million, driven by a reduction in securities; average yield decreased from 5.25% to 5.14%[12] - Average cost of interest-bearing liabilities decreased from 3.09% to 2.77%; total cost of deposits decreased from 2.34% to 2.06%[12] Three months ended June 30, 2025 vs. March 31, 2025 This subsection analyzes the sequential changes in net interest income and margin between the second and first quarters of 2025, identifying quarterly shifts - Net interest income increased by $1.0 million to $87.6 million, and net interest margin increased from 2.90% to 2.91%[13] - Average earning assets decreased by $46.5 million, primarily due to a reduction in securities; average earning asset yield increased from 5.13% to 5.14%[13] - Average interest-bearing liabilities decreased by $36.1 million, mainly due to reductions in interest-bearing checking deposits and FHLB advances; total average cost of interest-bearing liabilities decreased from 2.78% to 2.77%; total cost of deposits remained stable at 2.06%[14] Provision for Credit Losses The provision for credit losses increased year-over-year in Q2 and H1 2025, driven by net loan charge-offs, changes in the commercial and industrial loan portfolio, and increased unfunded credit commitments Provision for Credit Losses | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $3.0 | $3.1 | -3.23 | Provision for Credit Losses | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $8.4 | $3.7 | +127.03 | - The provision for the quarter was primarily driven by $2.2 million in net loan charge-offs, a net reserve increase due to changes in the commercial and industrial loan portfolio mix, and an increase in unfunded credit commitments[15] Net Loan Charge-offs | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Net Loan Charge-offs | $2.2 | $1.5 | +46.67 | Net Loan Charge-offs | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Net Loan Charge-offs | $2.9 | $1.8 | +61.11 | - The quarter included $1.6 million in charge-offs related to two commercial relationships from a recent acquisition[16] Non-interest Income Non-interest income increased year-over-year in Q2 2025, primarily due to higher net gains on loan sales and non-recurring other income, but slightly decreased for H1 due to significant non-core impacts in the prior year Three months ended June 30, 2025 vs. June 30, 2024 This subsection compares non-interest income for Q2 2025 against Q2 2024, detailing changes in revenue streams - Other income increased to $11.7 million from $11.0 million in the prior year quarter; excluding non-core items, other income increased by $1.1 million, driven by a $0.757 million increase in net gains on loan sales and a $1.1 million increase in non-recurring other income[18][19] Six months ended June 30, 2025 vs. June 30, 2024 This subsection compares non-interest income for H1 2025 against H1 2024, highlighting year-to-date trends - Other income decreased to $23.0 million from $23.3 million in the prior year period, which was favorably impacted by $4.0 million in net gains on equity investments and the non-core sale of the trust business[20] - Excluding non-core items, other income increased by $3.0 million, driven by a $1.3 million increase in net gains on loan sales, a $0.448 million increase in commercial loan swap income, and a $1.9 million increase in non-recurring other income[21] Three months ended June 30, 2025 vs. March 31, 2025 This subsection analyzes sequential changes in non-interest income between Q2 and Q1 2025 - Other income increased by $0.197 million, primarily driven by a $1.1 million increase in non-recurring other income this quarter, partially offset by $0.842 million in non-recurring other income in the prior quarter and a $0.413 million decrease in commercial loan swap income[22] Non-interest Expense Non-interest expense significantly increased year-over-year in Q2 and H1 2025, primarily due to higher compensation and benefits, professional fees, other operating expenses, and data processing costs, partly driven by acquisitions and new commercial banking team hires Three months ended June 30, 2025 vs. June 30, 2024 This subsection compares non-interest expenses for Q2 2025 against Q2 2024, detailing key cost drivers - Operating expenses increased by $12.9 million to $71.5 million, primarily driven by a $7.1 million increase in compensation and benefits, partly due to an acquisition late last year, annual merit increases, and new commercial banking team hires this quarter[23] - Other drivers included a $2.2 million increase in professional fees (primarily recruiting fees), a $1.9 million increase in other operating expenses (primarily additional loan servicing fees), a $0.79 million increase in data processing expenses, and a $0.366 million increase in marketing expenses[23] Six months ended June 30, 2025 vs. June 30, 2024 This subsection compares non-interest expenses for H1 2025 against H1 2024, highlighting year-to-date cost trends - Operating expenses increased by $18.9 million (excluding non-core items), primarily driven by an $11.1 million increase in compensation and benefits, partly due to an acquisition late last year, annual merit increases, and new commercial banking team hires[25] - Other drivers included a $2.9 million increase in other operating expenses, a $1.9 million increase in professional fees, a $1.5 million increase in data processing expenses, a $0.577 million increase in occupancy expenses, and a $0.484 million increase in marketing expenses[25] Three months ended June 30, 2025 vs. March 31, 2025 This subsection analyzes sequential changes in non-interest expenses between Q2 and Q1 2025 - Operating expenses increased by $7.2 million to $71.5 million, primarily driven by a $3.5 million increase in compensation and benefits (due to new banking team hires) and a $1.9 million increase in professional fees (primarily commercial banker recruiting)[26] - Additionally, other operating expenses increased by $1.4 million, partly related to higher title costs[27] Income Tax Expense Income tax expense decreased year-over-year in both Q2 and H1 2025, with effective tax rates fluctuating across periods Income Tax Expense | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | $5.8 | $7.1 | -18.31 | | Effective Tax Rate | 23.2 % | 22.5 % | +0.7 pp | Income Tax Expense | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change (YoY) (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | $12.6 | $17.7 | -28.70 | | Effective Tax Rate | 23.7 % | 25.0 % | -1.3 pp | - The effective tax rate for H1 2024 was negatively impacted by 1.6% due to a $1.2 million non-recurring write-off of deferred tax assets[28] Financial Condition This section provides an overview of the company's balance sheet, capital management, and asset quality as of June 30, 2025 Balance Sheet Overview As of June 30, 2025, total assets decreased from year-end 2024, mainly due to reduced debt securities, while total loans and loan reserves increased; total liabilities decreased, with higher deposits but lower FHLB advances and other liabilities - Total assets decreased by $93.4 million to $13.33 billion, primarily due to a reduction in debt securities[29] - Total loans increased by $67.0 million to $10.19 billion, and loan reserves increased by $648.1 million to $954.8 million, primarily driven by a $593.3 million increase in commercial loans[29] - Total liabilities decreased by $34.3 million to $11.68 billion, mainly related to a funding portfolio shift; deposits increased by $166.1 million to $10.23 billion, primarily due to an increase in time deposits[30] - FHLB advances decreased by $133.9 million to $938.7 million; the loan-to-deposit ratio was 99.5%, compared to 100.5% at year-end 2024[31] Capital Management The company maintained strong capital levels exceeding "well-capitalized" regulatory thresholds, completing preferred stock redemption and share repurchases this quarter, leading to slight decreases in total equity and tangible common equity, but an increase in tangible common equity to tangible assets ratio - Capital levels remained strong as of June 30, 2025, exceeding "well-capitalized" regulatory thresholds, with the common equity tier 1 ratio decreasing to 11.0%, impacted by share repurchases and increased loan commitments[32] - Total shareholders' equity decreased to $1.64 billion, primarily due to the redemption of $55.5 million in preferred stock and capital returns such as dividends and share repurchases, partially offset by net income[33] - The company repurchased 1,401,945 shares totaling $24.3 million during H1 2025; as of June 30, 226,284 shares were available for repurchase; on July 16, the Board authorized an additional 3.0 million shares for repurchase[34] - Tangible common equity decreased by $1.7 million to $1.11 billion; the tangible common equity to tangible assets ratio increased by 5 basis points to 8.67% during the year[35] Asset Quality As of June 30, 2025, the company's asset quality remained stable, with decreases in non-performing loans and 30-89 day delinquent loans, and a significant improvement in the allowance for credit losses coverage ratio - Non-performing loans decreased to $33.5 million, representing 0.33% of total loans; the allowance for credit losses to total non-performing loans ratio improved to 236.54% from 207.19% at year-end 2024[36] - Loans 30-89 days delinquent decreased to $14.7 million, primarily related to residential loans; non-performing and classified loans and other real estate owned decreased to $153.3 million[36] - Excluding PCD (purchased credit-impaired) loans, non-performing loans decreased to $26.7 million; the allowance for credit losses to total non-performing loans ratio improved to 296.75% from 266.73% at year-end 2024[37] Supplemental Financial Data This section provides detailed financial statements, loan and deposit data, asset quality metrics, and net interest income analysis for various periods Consolidated Statements of Financial Condition This section provides consolidated balance sheets as of June 30, 2025, March 31, 2025, December 31, 2024, and June 30, 2024, detailing the composition of assets, liabilities, and shareholders' equity Consolidated Statements of Financial Condition (Selected, in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Assets: | | | | | Cash and Due from Banks | $170,599 | $123,615 | $181,198 | | Debt Securities Available for Sale | $735,561 | $827,500 | $721,484 | | Debt Securities Held to Maturity | $968,969 | $1,045,875 | $1,105,843 | | Loans, Net | $10,119,781 | $10,055,429 | $9,961,117 | | Goodwill | $523,308 | $523,308 | $506,146 | | Total Assets | $13,327,847 | $13,421,247 | $13,321,755 | | Liabilities: | | | | | Deposits | $10,232,442 | $10,066,342 | $9,994,017 | | Federal Home Loan Bank Advances | $938,687 | $1,072,611 | $789,337 | | Total Liabilities | $11,684,167 | $11,718,490 | $11,645,086 | | Shareholders' Equity: | | | | | Total Shareholders' Equity | $1,643,680 | $1,702,757 | $1,676,669 | Consolidated Statements of Income This section presents consolidated statements of income for the three and six months ended June 30, 2025, March 31, 2025, and June 30, 2024, detailing interest income, interest expense, net interest income, provision for credit losses, non-interest income, operating expenses, and net income Consolidated Statements of Income (Selected, in thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $154,825 | $159,426 | $308,528 | $321,028 | | Total Interest Expense | $67,189 | $77,163 | $134,240 | $152,541 | | Net Interest Income | $87,636 | $82,263 | $174,288 | $168,487 | | Provision for Credit Losses | $3,039 | $3,114 | $8,379 | $3,705 | | Total Other Income | $11,733 | $10,985 | $22,986 | $23,271 | | Total Operating Expenses | $71,474 | $58,620 | $135,768 | $117,292 | | Income Tax Expense | $5,771 | $7,082 | $12,579 | $17,719 | | Net Income | $19,085 | $24,432 | $40,548 | $53,042 | | Net Income Attributable to Common Shareholders | $16,200 | $23,369 | $36,705 | $51,032 | | Diluted EPS | $0.28 | $0.40 | $0.63 | $0.87 | Selected Loan and Deposit Data This section provides detailed loan and deposit data as of June 30, 2025, and prior quarters, including loan types, loan reserves, loan originations and sales, and deposit types and composition Loan Portfolio (in thousands of USD) | Loan Type | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Commercial Real Estate - Investor | $5,068,125 | $5,287,683 | $5,324,994 | | Commercial and Industrial | $1,776,910 | $1,550,164 | $1,474,110 | | Residential Real Estate | $3,119,232 | $3,049,763 | $2,977,698 | | Other Consumer | $220,820 | $230,462 | $242,526 | | Total Loans | $10,185,087 | $10,118,072 | $10,019,328 | Deposit Portfolio (in thousands of USD) | Deposit Type | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Non-interest Bearing Deposits | $1,686,627 | $1,617,182 | $1,632,521 | | Interest-Bearing Checking | $3,845,602 | $4,000,553 | $3,667,837 | | Money Market | $1,377,999 | $1,301,197 | $1,210,312 | | Savings | $1,022,918 | $1,066,438 | $1,115,688 | | Time Deposits | $2,299,296 | $2,080,972 | $2,367,659 | | Total Deposits | $10,232,442 | $10,066,342 | $9,994,017 | - As of June 30, 2025, loan reserves reached $954.8 million, with commercial loan reserves at $790.8 million, a significant increase from the prior quarter[49] - Total loan originations for Q2 2025 were $716.0 million, including $425.9 million in commercial loans and $274.3 million in residential real estate loans[49] Asset Quality Data This section presents asset quality metrics as of June 30, 2025, and prior quarters, including non-performing loans, other real estate owned, delinquent loans, and allowance for credit losses ratios Asset Quality Metrics (in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Non-performing Loans | $33,511 | $35,527 | $33,422 | | Other Real Estate Owned | $7,680 | $1,811 | $0 | | Total Non-performing Assets | $41,191 | $37,338 | $33,422 | | Loans 30-89 Days Delinquent | $14,740 | $36,550 | $9,655 | | Allowance for Credit Losses | $79,266 | $73,607 | $68,839 | | Allowance for Credit Losses as a % of Total Loans | 0.78 % | 0.73 % | 0.69 % | | Allowance for Credit Losses as a % of Total Non-performing Loans | 236.54 % | 207.19 % | 205.97 % | - As of June 30, 2025, non-performing loans represented 0.33% of total loans, and non-performing assets represented 0.31% of total assets[52] Net Loan (Charge-offs) Recoveries This section provides net loan charge-off and recovery data as of June 30, 2025, and prior quarters, illustrating charge-off trends for commercial and residential/consumer loans Net Loan (Charge-offs) Recoveries (in thousands of USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Loan Charge-offs | $(2,415) | $(798) | $(1,600) | | Loan Recoveries | $197 | $162 | $148 | | Net Loan (Charge-offs) Recoveries | $(2,218) | $(636) | $(1,452) | | Net Loan (Charge-offs) Recoveries as a % of Average Total Loans (Annualized) | 0.09 % | 0.03 % | 0.06 % | - Q2 2025 included $1.6 million in charge-offs related to two commercial relationships and $0.445 million in charge-offs related to the sale of non-performing residential and consumer loans[54][55] Analysis of Net Interest Income This section provides a detailed analysis of net interest income composition for the periods ended June 30, 2025, and prior quarters, including average balances, interest income/expense, and average yields/costs for earning assets and interest-bearing liabilities Analysis of Net Interest Income (Selected, in thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Earning Assets: | | | | | | Average Balance | $12,065,530 | $12,203,776 | $12,091,301 | $12,277,080 | | Average Yield | 5.14 % | 5.25 % | 5.14 % | 5.25 % | | Interest-Bearing Liabilities: | | | | | | Average Balance | $9,739,728 | $9,872,522 | $9,757,682 | $9,937,245 | | Average Cost | 2.77 % | 3.14 % | 2.77 % | 3.09 % | | Net Interest Spread | 2.37 % | 2.11 % | 2.37 % | 2.16 % | | Net Interest Margin | 2.91 % | 2.71 % | 2.91 % | 2.76 % | | Total Cost of Deposits | 2.06 % | 2.37 % | 2.06 % | 2.34 % | Selected Quarterly Financial Data This section presents selected financial condition data, operating data, and financial ratios for the quarters ended June 30, 2025, and prior, including assets, liabilities, equity, income, expenses, per-share data, and key ratios Selected Financial Condition Data (Selected, in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $13,327,847 | $13,421,247 | $13,321,755 | | Deposits | $10,232,442 | $10,066,342 | $9,994,017 | | Total Shareholders' Equity | $1,643,680 | $1,702,757 | $1,676,669 | Selected Operating Data (Selected, in thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $87,636 | $82,263 | $174,288 | $168,487 | | Net Income Attributable to Common Shareholders | $16,200 | $23,369 | $36,705 | $51,032 | | Diluted EPS | $0.28 | $0.40 | $0.63 | $0.87 | Selected Financial Ratios (Annualized) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Return on Average Assets (%) | 0.49 | 0.70 | 0.56 | 0.76 | | Efficiency Ratio (%) | 71.93 | 62.86 | 68.82 | 61.17 | | Loan-to-Deposit Ratio (%) | 99.50 | 100.30 | - | - | | Book Value Per Share (USD) | $28.64 | $28.67 | - | - | | Tangible Book Value Per Share (USD) | $19.34 | $18.93 | - | - | Non-GAAP Reconciliation This section provides non-GAAP reconciliation tables for core earnings, pre-tax pre-provision (PTPP) core earnings, tangible equity, and tangible assets, to help investors better understand the company's underlying operating performance Core Earnings (Non-GAAP, in thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Common Shareholders (GAAP) | $16,200 | $23,369 | $36,705 | $51,032 | | Total Adjustments | $1,469 | $(699) | $1,313 | $(2,724) | | Core Earnings (Non-GAAP) | $17,669 | $22,670 | $38,018 | $48,308 | | Diluted Core EPS | $0.31 | $0.39 | $0.66 | $0.83 | Core PTPP Earnings (Non-GAAP, in thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Core PTPP Earnings (Non-GAAP) | $26,364 | $32,678 | $58,812 | $68,902 | | Diluted Core PTPP EPS | $0.46 | $0.56 | $1.02 | $1.18 | Tangible Equity and Tangible Assets (Non-GAAP, in thousands of USD) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $1,643,680 | $1,702,757 | $1,676,669 | | Less: Goodwill | $523,308 | $523,308 | $506,146 | | Less: Intangible Assets | $10,834 | $12,680 | $7,859 | | Tangible Shareholders' Equity | $1,109,538 | $1,166,769 | $1,162,664 | | Less: Preferred Stock | $0 | $55,527 | $55,527 | | Tangible Common Equity | $1,109,538 | $1,111,242 | $1,107,137 | | Total Assets | $13,327,847 | $13,421,247 | $13,321,755 | | Less: Goodwill | $523,308 | $523,308 | $506,146 | | Less: Intangible Assets | $10,834 | $12,680 | $7,859 | | Tangible Assets | $12,793,705 | $12,885,259 | $12,807,750 | | Tangible Shareholders' Equity to Tangible Assets Ratio (%) | 8.67 | 9.06 | 9.08 | | Tangible Common Equity to Tangible Assets Ratio (%) | 8.67 | 8.62 | 8.64 | Other Information This section includes explanations of non-GAAP financial measures, conference call details, a company profile, and forward-looking statements Explanation of Non-GAAP Financial Measures Management believes supplemental non-GAAP information, such as net income excluding non-core items and equity/assets excluding intangibles, provides better comparability of operating performance across periods and is used by regulators and analysts to assess financial condition - Non-GAAP information provides better period-over-period operating performance comparisons by excluding non-core items, income tax, and provision for credit losses, as well as equity and asset amounts excluding intangible assets, goodwill, or preferred stock[38] - These disclosures should not be considered a substitute for GAAP financial results and may not be comparable to non-GAAP performance measures provided by other companies[38] Conference Call Details The company will host an earnings conference call on July 25, 2025, at 11:00 AM ET, with replay and webcast options available - The company will host an earnings conference call on July 25, 2025, at 11:00 AM ET, dial-in number (833) 470-1428, access code 170810[39] - A replay will be available from one hour after the call until August 1, 2025, by dialing (866) 813-9403; the call and replay are also webcast via the investor relations section of www.oceanfirst.com[39](index=39&type=chunk) Company Profile OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank offering financial services across New Jersey and major metropolitan areas from Massachusetts to Virginia - OceanFirst Bank N.A., founded in 1902, is a regional bank with $13.3 billion in assets, providing commercial and residential financing, treasury management, trust and asset management, and deposit services[41] - The bank is one of New Jersey's largest and oldest community-based financial institutions[41] Forward-Looking Statements This press release contains forward-looking statements based on certain assumptions, describing future plans, strategies, and expectations, but their projected results or actual impact are inherently uncertain and subject to various risks and uncertainties - Forward-looking statements are based on certain assumptions, describing future plans, strategies, and expectations, but projected results or actual impact are inherently uncertain[42] - Factors that could materially adversely affect operations include, but are not limited to: changes in interest rates, inflation, macroeconomic conditions, real estate market values, regulatory changes, competition, and operational risks such as cyberattacks[42] - The company undertakes no obligation to publicly revise any forward-looking statements to reflect events or circumstances after the date of the statements[42]