Intelligence – Page 158

MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

	For the Three Months Ended,
	March 31,		December 31,		March 31,
Performance Ratios (Annualized):	2025		2024		2024
Return on average assets	0.62	%	0.61	%	0.82	%
Return on average stockholders’ equity	4.85		4.88		6.65
Return on average tangible stockholders’ equity ^(a)	7.05		7.12		9.61
Return on average tangible common equity ^(a)	7.40		7.47		10.09
Efficiency ratio	65.67		67.86		59.56
Net interest margin	2.90		2.69		2.81

_{^(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.}

Core earnings¹ for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

Core earnings PTPP¹ for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

	For the Three Months Ended,
	March 31,			December 31,			March 31,
Core Ratios¹(Annualized):		2025			2024			2024
Return on average assets		0.62	%		0.65	%		0.76	%
Return on average tangible stockholders’ equity		7.00			7.51			8.91
Return on average tangible common equity		7.34			7.89			9.36
Efficiency ratio		65.81			67.74			61.05
Core diluted earnings per share	$	0.35		$	0.38		$	0.44
Core PTPP diluted earnings per share		0.56			0.51			0.62

Key developments for the recent quarter are described below:

Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

_{¹ Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}

Results of Operations

The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

Net Interest Income and Margin

Three months ended March 31, 2025 vs. March 31, 2024

Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

Three months ended March 31, 2025 vs. December 31, 2024

Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

Provision for Credit Losses

Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

Non-interest Income

Three months ended March 31, 2025 vs. March 31, 2024

Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

Three months ended March 31, 2025 vs. December 31, 2024

Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

Non-interest Expense

Three months ended March 31, 2025 vs. March 31, 2024

Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

Three months ended March 31, 2025 vs. December 31, 2024

Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

Income Tax Expense

The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

Financial Condition

March 31, 2025 vs. December 31, 2024

Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company’s tangible common equity² increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share² increased to $19.16, as compared to $18.98.

_{² Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}

Asset Quality

March 31, 2025 vs. December 31, 2024

The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

Explanation of Non-GAAP Financial Measures

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

Annual Meeting

The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. 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 $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, 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)

	March 31,		December 31,		March 31,
		2025		2024		2024
	(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	163,721	$	123,615	$	130,422
Debt securities available-for-sale, at estimated fair value		746,168		827,500		744,944
Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)		1,005,476		1,045,875		1,128,666
Equity investments		87,365		84,104		103,201
Restricted equity investments, at cost		102,172		108,634		85,689
Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024		10,058,072		10,055,429		10,068,209
Loans held-for-sale		9,698		21,211		4,702
Interest and dividends receivable		44,843		45,914		52,502
Other real estate owned		1,917		1,811		—
Premises and equipment, net		114,588		115,256		119,211
Bank owned life insurance		269,398		270,208		266,615
Assets held for sale		—		—		28
Goodwill		523,308		523,308		506,146
Intangibles		11,740		12,680		8,669
Other assets		170,812		185,702		199,974
Total assets	$	13,309,278	$	13,421,247	$	13,418,978
Liabilities and Stockholders’ Equity
Deposits	$	10,177,023	$	10,066,342	$	10,236,851
Federal Home Loan Bank advances		891,021		1,072,611		658,436
Securities sold under agreements to repurchase with customers		65,132		60,567		66,798
Other borrowings		197,808		197,546		425,722
Advances by borrowers for taxes and insurance		28,789		23,031		28,187
Other liabilities		240,388		298,393		337,147
Total liabilities		11,600,161		11,718,490		11,753,141
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity		1,708,322		1,701,650		1,665,112
Non-controlling interest		795		1,107		725
Total stockholders’ equity		1,709,117		1,702,757		1,665,837
Total liabilities and stockholders’ equity	$	13,309,278	$	13,421,247	$	13,418,978

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

	For the Three Months Ended,
	March 31,			December 31,			March 31,
		2025			2024			2024
	\|———————- (Unaudited) ———————-\|
Interest income:
Loans	$	133,019		$	135,438		$	137,121
Debt securities		17,270			19,400			19,861
Equity investments and other		3,414			4,782			4,620
Total interest income		153,703			159,620			161,602
Interest expense:
Deposits		51,046			59,889			59,855
Borrowed funds		16,005			16,402			15,523
Total interest expense		67,051			76,291			75,378
Net interest income		86,652			83,329			86,224
Provision for credit losses		5,340			3,467			591
Net interest income after provision for credit losses		81,312			79,862			85,633
Other income:
Bankcard services revenue		1,463			1,595			1,416
Trust and asset management revenue		406			416			526
Fees and service charges		4,712			6,207			4,473
Net gain on sales of loans		858			1,076			357
Net gain (loss) on equity investments		205			(5	)		1,923
Net loss from other real estate operations		(16	)		(20	)		—
Income from bank owned life insurance		1,852			2,538			1,862
Commercial loan swap income		620			86			138
Other		1,153			339			1,591
Total other income		11,253			12,232			12,286
Operating expenses:
Compensation and employee benefits		36,740			36,602			32,759
Occupancy		5,497			5,280			5,199
Equipment		921			1,026			1,130
Marketing		1,108			1,615			990
Federal deposit insurance and regulatory assessments		2,983			2,517			3,135
Data processing		6,647			6,366			5,956
Check card processing		1,170			1,134			1,050
Professional fees		2,425			2,620			2,732
Amortization of intangibles		940			876			844
Merger related expenses		—			110			—
Other operating expense		5,863			6,703			4,877
Total operating expenses		64,294			64,849			58,672
Income before provision for income taxes		28,271			27,245			39,247
Provision for income taxes		6,808			5,083			10,637
Net income		21,463			22,162			28,610
Net (loss) income attributable to non-controlling interest		(46	)		253			(57	)
Net income attributable to OceanFirst Financial Corp.		21,509			21,909			28,667
Dividends on preferred shares		1,004			1,004			1,004
Net income available to common stockholders	$	20,505		$	20,905		$	27,663
Basic earnings per share	$	0.35		$	0.36		$	0.47
Diluted earnings per share	$	0.35		$	0.36		$	0.47
Average basic shares outstanding		58,102			58,026			58,789
Average diluted shares outstanding		58,111			58,055			58,791

OceanFirst Financial Corp.
SELECTEDLOANAND DEPOSIT DATA
(dollars in thousands)

LOANS RECEIVABLE			At
			March 31,			December 31,			September 30,			June 30,			March 31,
				2025			2024			2024			2024			2024
Commercial:
Commercial real estate – investor			$	5,200,137		$	5,287,683		$	5,273,159		$	5,324,994		$	5,322,755
Commercial and industrial:
Commercial and industrial – real estate ⁽¹⁾				896,647			902,219			841,930			857,710			914,582
Commercial and industrial – non-real estate ⁽¹⁾				748,575			647,945			660,879			616,400			677,176
Total commercial and industrial				1,645,222			1,550,164			1,502,809			1,474,110			1,591,758
Total commercial				6,845,359			6,837,847			6,775,968			6,799,104			6,914,513
Consumer:
Residential real estate				3,053,318			3,049,763			3,003,213			2,977,698			2,965,276
Home equity loans and lines and other consumer (“other consumer”)				226,633			230,462			242,975			242,526			245,859
Total consumer				3,279,951			3,280,225			3,246,188			3,220,224			3,211,135
Total loans				10,125,310			10,118,072			10,022,156			10,019,328			10,125,648
Deferred origination costs (fees), net				11,560			10,964			10,508			10,628			9,734
Allowance for loan credit losses				(78,798	)		(73,607	)		(69,066	)		(68,839	)		(67,173	)
Loans receivable, net			$	10,058,072		$	10,055,429		$	9,963,598		$	9,961,117		$	10,068,209
Mortgage loans serviced for others			$	222,963		$	191,279		$	142,394		$	104,136		$	89,555
	At March 31, 2025 Average Yield
Loan pipeline ⁽²⁾:
Commercial	7.37	%	$	375,622		$	197,491		$	199,818		$	166,206		$	66,167
Residential real estate	6.41			116,121			97,385			137,978			80,330			57,340
Other consumer	8.51			12,681			11,783			13,788			12,586			13,030
Total	7.18	%	$	504,424		$	306,659		$	351,584		$	259,122		$	136,537

	For the Three Months Ended
	March 31,					December 31,		September 30,		June 30,		March 31,
	2025						2024		2024		2024		2024
	Average Yield
Loan originations:
Commercial ⁽³⁾	7.61	%	$	233,968		$	268,613	$	245,886	$	56,053	$	123,010
Residential real estate	6.53			167,162			235,370		169,273		121,388		78,270
Other consumer	8.49			15,825			11,204		15,760		16,970		11,405
Total	7.21	%	$	416,955		$	515,187	$	430,919	$	194,411	$	212,685
Loans sold			$	104,991	⁽⁴⁾	$	127,508	$	65,296	$	45,045	$	29,965

_⁽¹⁾	_{During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.}
_⁽²⁾	_{Loan pipeline includes loans approved but not funded.}
_⁽³⁾	_{Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.}
_⁽⁴⁾	_{Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.}

DEPOSITS	At
	March 31,		December 31,		September 30,		June 30,		March 31,
		2025		2024		2024		2024		2024
Type of Account
Non-interest-bearing	$	1,660,738	$	1,617,182	$	1,638,447	$	1,632,521	$	1,639,828
Interest-bearing checking		4,006,653		4,000,553		3,896,348		3,667,837		3,865,699
Money market		1,337,570		1,301,197		1,288,555		1,210,312		1,150,979
Savings		1,052,504		1,066,438		1,071,946		1,115,688		1,260,309
Time deposits ⁽¹⁾		2,119,558		2,080,972		2,220,871		2,367,659		2,320,036
Total deposits	$	10,177,023	$	10,066,342	$	10,116,167	$	9,994,017	$	10,236,851

_⁽¹⁾	_{Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.}

OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
ASSET QUALITY⁽¹⁾		2025			2024			2024			2024			2024
Non-performing loans:
Commercial real estate – investor	$	23,595		$	17,000		$	12,478		$	19,761		$	21,507
Commercial and industrial:
Commercial and industrial – real estate		4,690			4,787			4,368			4,081			3,355
Commercial and industrial – non-real estate		22			32			122			434			567
Total commercial and industrial		4,712			4,819			4,490			4,515			3,922
Residential real estate		5,709			10,644			9,108			7,213			7,181
Other consumer		2,954			3,064			2,063			1,933			2,401
Total non-performing loans⁽¹⁾	$	36,970		$	35,527		$	28,139		$	33,422		$	35,011
Other real estate owned		1,917			1,811			—			—			—
Total non-performing assets	$	38,887		$	37,338		$	28,139		$	33,422		$	35,011
Delinquent loans 30 to 89 days	$	46,246		$	36,550		$	15,458		$	9,655		$	17,534
Modifications to borrowers experiencing financial difficulty⁽²⁾
Non-performing (included in total non-performing loans above)	$	8,307		$	3,232		$	3,043		$	3,210		$	3,467
Performing		27,592			27,631			20,652			20,529			8,579
Total modifications to borrowers experiencing financial difficulty⁽²⁾	$	35,899		$	30,863		$	23,695		$	23,739		$	12,046
Allowance for loan credit losses	$	78,798		$	73,607		$	69,066		$	68,839		$	67,173
Allowance for loan credit losses as a percent of total loans receivable⁽³⁾		0.78	%		0.73	%		0.69	%		0.69	%		0.66	%
Allowance for loan credit losses as a percent of total non-performing loans⁽³⁾		213.14			207.19			245.45			205.97			191.86
Non-performing loans as a percent of total loans receivable		0.37			0.35			0.28			0.33			0.35
Non-performing assets as a percent of total assets		0.29			0.28			0.21			0.25			0.26
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	21,737		$	22,006		$	15,323		$	16,058		$	16,700
Non-performing PCD loans		7,724			7,931			2,887			2,841			3,525
Delinquent PCD and non-performing loans 30 to 89 days		10,489			2,997			1,279			1,188			2,088
PCD modifications to borrowers experiencing financial difficulty⁽²⁾		22			23			24			26			25
Asset quality, excluding PCD loans⁽⁴⁾
Non-performing loans⁽¹⁾		29,246			27,596			25,252			30,581			31,486
Non-performing assets		31,163			29,407			25,252			30,581			31,486
Delinquent loans 30 to 89 days (excludes non-performing loans)		35,757			33,553			14,179			8,467			15,446
Modifications to borrowers experiencing financial difficulty⁽²⁾		35,877			30,840			23,671			23,713			12,021
Allowance for loan credit losses as a percent of total non-performing loans⁽³⁾		269.43	%		266.73	%		273.51	%		225.10	%		213.34	%
Non-performing loans as a percent of total loans receivable		0.29			0.27			0.25			0.31			0.31
Non-performing assets as a percent of total assets		0.23			0.22			0.19			0.23			0.23

_⁽¹⁾	_{The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.}
_⁽²⁾	_{Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.}
_⁽³⁾	_{Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.}
_⁽⁴⁾	_{All balances and ratios exclude PCD loans.}

NET LOAN (CHARGE-OFFS) RECOVERIES	For the Three Months Ended
	March 31,				December 31,			September 30,			June 30,				March 31,
		2025				2024			2024			2024				2024
Net loan (charge-offs) recoveries:
Loan charge-offs	$	(798	)		$	(55	)	$	(124	)	$	(1,600	)		$	(441	)
Recoveries on loans		162				213			212			148				92
Net loan (charge-offs) recoveries	$	(636	)		$	158		$	88		$	(1,452	)		$	(349	)
Net loan (charge-offs) recoveries to average total loans (annualized)		0.03	%			NM	*		NM	*		0.06	%			0.01	%
Net loan (charge-offs) recoveries detail:
Commercial	$	25			$	92		$	129		$	(1,576	)	⁽¹⁾	$	(35	)
Residential real estate		(720	)	⁽²⁾		(17	)		(6	)		87				66
Other consumer		59				83			(35	)		37				(380	)
Net loan (charge-offs) recoveries	$	(636	)		$	158		$	88		$	(1,452	)		$	(349	)

_⁽¹⁾	_{The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.}
_⁽²⁾	_{The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.}
_^*	_{Not meaningful as amounts are net loan recoveries.}

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME

	For the Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(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	$	95,439		$	983	4.18	%	$	195,830		$	2,415	4.91	%	$	163,192		$	2,226	5.49	%
Securities ⁽²⁾		2,003,206			19,701	3.99			2,116,911			21,767	4.09			2,098,421			22,255	4.27
Loans receivable, net ⁽³⁾
Commercial		6,781,005			98,260	5.88			6,794,158			101,003	5.91			6,925,048			104,421	6.06
Residential real estate		3,065,679			31,270	4.08			3,049,092			30,455	4.00			2,974,468			28,596	3.85
Other consumer		228,553			3,489	6.19			236,161			3,980	6.70			248,396			4,104	6.65
Allowance for loan credit losses, net of deferred loan costs and fees		(61,854	)		—	—			(60,669	)		—	—			(59,141	)		—	—
Loans receivable, net		10,013,383			133,019	5.37			10,018,742			135,438	5.38			10,088,771			137,121	5.46
Total interest-earning assets		12,112,028			153,703	5.13			12,331,483			159,620	5.15			12,350,384			161,602	5.26
Non-interest-earning assets		1,199,865							1,213,569							1,206,336
Total assets	$	13,311,893						$	13,545,052						$	13,556,720
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	4,135,952			21,433	2.10	%	$	4,050,428			22,750	2.23	%	$	3,925,965			20,795	2.13	%
Money market		1,322,003			9,353	2.87			1,325,119			10,841	3.25			1,092,003			9,172	3.38
Savings		1,058,015			1,785	0.68			1,070,816			2,138	0.79			1,355,718			4,462	1.32
Time deposits		1,916,109			18,475	3.91			2,212,750			24,160	4.34			2,414,063			25,426	4.24
Total		8,432,079			51,046	2.46			8,659,113			59,889	2.75			8,787,749			59,855	2.74
FHLB Advances		996,293			11,359	4.62			854,748			10,030	4.67			644,818			7,771	4.85
Securities sold under agreements to repurchase		64,314			428	2.70			76,856			513	2.66			68,500			411	2.41
Other borrowings		283,150			4,218	6.04			396,412			5,859	5.88			500,901			7,341	5.89
Total borrowings		1,343,757			16,005	4.83			1,328,016			16,402	4.91			1,214,219			15,523	5.14
Total interest-bearing liabilities		9,775,836			67,051	2.78			9,987,129			76,291	3.04			10,001,968			75,378	3.03
Non-interest-bearing deposits		1,597,972							1,627,376							1,634,583
Non-interest-bearing liabilities		222,951							227,221							247,129
Total liabilities		11,596,759							11,841,726							11,883,680
Stockholders’ equity		1,715,134							1,703,326							1,673,040
Total liabilities and equity	$	13,311,893						$	13,545,052						$	13,556,720
Net interest income				$	86,652						$	83,329						$	86,224
Net interest rate spread ⁽⁴⁾						2.35	%						2.11	%						2.23	%
Net interest margin ⁽⁵⁾						2.90	%						2.69	%						2.81	%
Total cost of deposits (including non-interest-bearing deposits)						2.06	%						2.32	%						2.31	%

_⁽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)

	March 31,		December 31,		September 30,		June 30,		March 31,
		2025		2024		2024		2024		2024
Selected Financial Condition Data:
Total assets	$	13,309,278	$	13,421,247	$	13,488,483	$	13,321,755	$	13,418,978
Debt securities available-for-sale, at estimated fair value		746,168		827,500		911,753		721,484		744,944
Debt securities held-to-maturity, net of allowance for securities credit losses		1,005,476		1,045,875		1,075,131		1,105,843		1,128,666
Equity investments		87,365		84,104		95,688		104,132		103,201
Restricted equity investments, at cost		102,172		108,634		98,545		92,679		85,689
Loans receivable, net of allowance for loan credit losses		10,058,072		10,055,429		9,963,598		9,961,117		10,068,209
Deposits		10,177,023		10,066,342		10,116,167		9,994,017		10,236,851
Federal Home Loan Bank advances		891,021		1,072,611		891,860		789,337		658,436
Securities sold under agreements to repurchase and other borrowings		262,940		258,113		501,090		504,490		492,520
Total stockholders’ equity		1,709,117		1,702,757		1,694,508		1,676,669		1,665,837

	For the Three Months Ended,
	March 31,			December 31,			September 30,		June 30,		March 31,
		2025			2024			2024		2024		2024
Selected Operating Data:
Interest income	$	153,703		$	159,620		$	161,525	$	159,426	$	161,602
Interest expense		67,051			76,291			79,306		77,163		75,378
Net interest income		86,652			83,329			82,219		82,263		86,224
Provision for credit losses (excluding Spring Garden)		5,340			2,041			517		3,114		591
Spring Garden opening provision for credit losses		—			1,426			—		—		—
Net interest income after provision for credit losses		81,312			79,862			81,702		79,149		85,633
Other income (excluding equity investments and sale of trust)		11,048			12,237			11,826		10,098		9,201
Net gain (loss) on equity investments		205			(5	)		1,420		887		1,923
Net gain on sale of trust business		—			—			1,438		—		1,162
Operating expenses (excluding FDIC special assessment and merger related expenses)		64,294			64,739			62,067		58,620		58,254
FDIC special assessment		—			—			—		—		418
Merger related expenses		—			110			1,669		—		—
Income before provision for income taxes		28,271			27,245			32,650		31,514		39,247
Provision for income taxes		6,808			5,083			7,464		7,082		10,637
Net income		21,463			22,162			25,186		24,432		28,610
Net (loss) income attributable to non-controlling interest		(46	)		253			70		59		(57	)
Net income attributable to OceanFirst Financial Corp.	$	21,509		$	21,909		$	25,116	$	24,373	$	28,667
Net income available to common stockholders	$	20,505		$	20,905		$	24,112	$	23,369	$	27,663
Diluted earnings per share	$	0.35		$	0.36		$	0.42	$	0.40	$	0.47
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	219		$	20		$	741	$	1,086	$	921

	At or For the Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2025		2024		2024		2024		2024
Selected Financial Ratios and Other Data ^{(1) (2)}:
Performance Ratios (Annualized):
Return on average assets ⁽³⁾	0.62	%	0.61	%	0.71	%	0.70	%	0.82	%
Return on average tangible assets ^{(3) (4)}	0.65		0.64		0.74		0.73		0.85
Return on average stockholders’ equity ⁽³⁾	4.85		4.88		5.68		5.61		6.65
Return on average tangible stockholders’ equity ^{(3) (4)}	7.05		7.12		8.16		8.10		9.61
Return on average tangible common equity ^{(3) (4)}	7.40		7.47		8.57		8.51		10.09
Stockholders’ equity to total assets	12.84		12.69		12.56		12.59		12.41
Tangible stockholders’ equity to tangible assets ⁽⁴⁾	9.19		9.06		9.10		9.08		8.92
Tangible common equity to tangible assets ⁽⁴⁾	8.76		8.62		8.68		8.64		8.49
Net interest rate spread	2.35		2.11		2.06		2.11		2.23
Net interest margin	2.90		2.69		2.67		2.71		2.81
Operating expenses to average assets	1.96		1.90		1.89		1.75		1.74
Efficiency ratio ⁽⁵⁾	65.67		67.86		65.77		62.86		59.56
Loan-to-deposit ratio	99.50		100.50		99.10		100.30		98.90

	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	149,106		$	147,956		$	152,797		$	150,519		$	236,891
Nest Egg AUA/M		453,803			431,434			430,413			403,647			407,478
Total AUA/M		602,909			579,390			583,210			554,166			644,369
Per Share Data:
Cash dividends per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20
Book value per common share at end of period		29.27			29.08			29.02			28.67			28.32
Tangible book value per common share at end of period ⁽⁴⁾		19.16			18.98			19.28			18.93			18.63
Common shares outstanding at end of period		58,383,525			58,554,871			58,397,094			58,481,418			58,812,498
Preferred shares outstanding at end of period		57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:		39			39			39			39			39
Quarterly Average Balances
Total securities	$	2,003,206		$	2,116,911		$	2,063,633		$	2,058,711		$	2,098,421
Loans receivable, net		10,013,383			10,018,742			9,958,794			10,012,491			10,088,771
Total interest-earning assets		12,112,028			12,331,483			12,232,672			12,203,776			12,350,384
Total goodwill and intangibles		535,657			534,942			513,731			514,535			515,356
Total assets		13,311,893			13,545,052			13,438,696			13,441,218			13,556,720
Time deposits		1,916,109			2,212,750			2,339,370			2,337,458			2,414,063
Total deposits (including non-interest-bearing deposits)		10,030,051			10,286,489			10,175,856			10,173,315			10,422,332
Total borrowings		1,343,757			1,328,016			1,333,245			1,325,372			1,214,219
Total interest-bearing liabilities		9,775,836			9,987,129			9,874,358			9,872,522			10,001,968
Non-interest bearing deposits		1,597,972			1,627,376			1,634,743			1,626,165			1,634,583
Stockholders’ equity		1,715,134			1,703,326			1,689,035			1,674,453			1,673,040
Tangible stockholders’ equity ⁽⁴⁾		1,179,477			1,168,384			1,175,304			1,159,918			1,157,684

Quarterly Yields and Costs
Total securities		3.99	%		4.09	%		4.23	%		4.22	%		4.27	%
Loans receivable, net		5.37			5.38			5.46			5.46			5.46
Total interest-earning assets		5.13			5.15			5.26			5.25			5.26
Time deposits		3.91			4.34			4.58			4.46			4.24
Total cost of deposits (including non-interest-bearing deposits)		2.06			2.32			2.44			2.37			2.31
Total borrowed funds		4.83			4.91			5.07			5.19			5.14
Total interest-bearing liabilities		2.78			3.04			3.20			3.14			3.03
Net interest spread		2.35			2.11			2.06			2.11			2.23
Net interest margin		2.90			2.69			2.67			2.71			2.81

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

OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Core Earnings:
Net income available to common stockholders (GAAP)	$	20,505		$	20,905		$	24,112		$	23,369		$	27,663
(Less) add non-recurring and non-core items:
Spring Garden opening provision for credit losses		—			1,426			—			—			—
Net (gain) loss on equity investments		(205	)		5			(1,420	)		(887	)		(1,923	)
Net gain on sale of trust business		—			—			(1,438	)		—			(1,162	)
FDIC special assessment		—			—			—			—			418
Merger related expenses		—			110			1,669			—			—
Income tax expense (benefit) on items		49			(388	)		270			188			642
Core earnings (Non-GAAP)	$	20,349		$	22,058		$	23,193		$	22,670		$	25,638
Income tax expense	$	6,808		$	5,083		$	7,464		$	7,082		$	10,637
Provision for credit losses		5,340			3,467			517			3,114			591
Less: non-core provision for credit losses		—			1,426			—			—			—
Less: income tax expense (benefit) on non-core items		49			(388	)		270			188			642
Core earnings PTPP (Non-GAAP)	$	32,448		$	29,570		$	30,904		$	32,678		$	36,224
Core earnings diluted earnings per share	$	0.35		$	0.38		$	0.39		$	0.39		$	0.44
Core earnings PTPP diluted earnings per share	$	0.56		$	0.51		$	0.53		$	0.56		$	0.62

Core Ratios (Annualized):
Return on average assets		0.62	%		0.65	%		0.69	%		0.68	%		0.76	%
Return on average tangible stockholders’ equity		7.00			7.51			7.85			7.86			8.91
Return on average tangible common equity		7.34			7.89			8.24			8.26			9.36
Efficiency ratio		65.81			67.74			66.00			63.47			61.05

	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Tangible Equity:
Total stockholders’ equity	$	1,709,117		$	1,702,757		$	1,694,508		$	1,676,669		$	1,665,837
Less:
Goodwill		523,308			523,308			506,146			506,146			506,146
Intangibles		11,740			12,680			7,056			7,859			8,669
Tangible stockholders’ equity		1,174,069			1,166,769			1,181,306			1,162,664			1,151,022
Less:
Preferred stock		55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,118,542		$	1,111,242		$	1,125,779		$	1,107,137		$	1,095,495

Tangible Assets:
Total assets	$	13,309,278		$	13,421,247		$	13,488,483		$	13,321,755		$	13,418,978
Less:
Goodwill		523,308			523,308			506,146			506,146			506,146
Intangibles		11,740			12,680			7,056			7,859			8,669
Tangible assets	$	12,774,230		$	12,885,259		$	12,975,281		$	12,807,750		$	12,904,163

Tangible stockholders’ equity to tangible assets		9.19	%		9.06	%		9.10	%		9.08	%		8.92	%
Tangible common equity to tangible assets		8.76	%		8.62	%		8.68	%		8.64	%		8.49	%

Company Contact:

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


BAYFIRST FINANCIAL CORP. SELECTED FINANCIAL DATA (Unaudited)

	At or for the three months ended
(Dollars in thousands, except for share data)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Net income (loss)	$	(335	)	$	9,776		$	1,137		$	866		$	824
Balance sheet data:
Average loans held for investment at amortized cost		1,027,648			1,003,867			948,528			902,417			855,040
Average total assets		1,287,618			1,273,296			1,228,040			1,178,501			1,126,315
Average common shareholders’ equity		96,053			87,961			86,381			84,948			85,385
Total loans held for investment		1,084,817			1,066,559			1,042,445			1,008,314			934,868
Total loans held for investment, excl gov’t gtd loan balances		943,979			917,075			885,444			844,659			776,302
Allowance for credit losses		16,513			15,512			14,186			13,843			13,906
Total assets		1,291,957			1,288,297			1,245,099			1,217,869			1,144,194
Total deposits		1,128,267			1,143,229			1,112,196			1,042,388			1,007,315
Common shareholders’ equity		94,034			94,869			86,242			84,911			84,578
Share data:
Basic earnings (loss) per common share	$	(0.17	)	$	2.27		$	0.18		$	0.12		$	0.11
Diluted earnings (loss) per common share		(0.17	)		2.11			0.18			0.12			0.11
Dividends per common share		0.08			0.08			0.08			0.08			0.08
Book value per common share		22.77			22.95			20.86			20.54			20.45
Tangible book value per common share ⁽¹⁾		22.77			22.95			20.86			20.54			20.45
Performance and capital ratios:
Return on average assets⁽²⁾	(0.10		)%		3.07	%		0.37	%		0.29	%		0.29	%
Return on average common equity⁽²⁾	(3.00		)%		42.71	%		3.48	%		2.26	%		2.06	%
Net interest margin⁽²⁾		3.77	%		3.60	%		3.34	%		3.43	%		3.42	%
Dividend payout ratio	(46.01		)%		3.52	%		43.98	%		68.91	%		75.27	%
Asset quality ratios:
Net charge-offs	$	3,301		$	3,369		$	2,757		$	3,261		$	3,652
Net charge-offs/avg loans held for investment at amortized cost⁽²⁾		1.28	%		1.34	%		1.16	%		1.45	%		1.71	%
Nonperforming loans⁽³⁾	$	24,806		$	17,607		$	15,489		$	12,312		$	9,877
Nonperforming loans (excluding gov’t gtd balance)⁽³⁾	$	15,078		$	13,570		$	10,992		$	8,054		$	7,568
Nonperforming loans/total loans held for investment⁽³⁾		2.42	%		1.75	%		1.62	%		1.34	%		1.15	%
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment⁽³⁾		1.47	%		1.35	%		1.15	%		0.87	%		0.88	%
ACL/Total loans held for investment at amortized cost		1.61	%		1.54	%		1.48	%		1.50	%		1.62	%
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans		1.84	%		1.79	%		1.70	%		1.73	%		1.88	%
Other Data:
Full-time equivalent employees		305			299			295			302			313
Banking center offices		12			12			12			12			12
⁽¹⁾ See section entitled “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for a reconciliation to most comparable GAAP equivalent.
⁽²⁾ Annualized
⁽³⁾ Excludes loans measured at fair value


Tangible Common Shareholders’ Equity and Tangible Book Value Per Common Share (Unaudited)
	As of
(Dollars in thousands, except for share data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total shareholders’ equity	$	110,085		$	110,920		$	102,293		$	100,962		$	100,629
Less: Preferred stock liquidation preference		(16,051	)		(16,051	)		(16,051	)		(16,051	)		(16,051	)
Total equity available to common shareholders		94,034			94,869			86,242			84,911			84,578
Less: Goodwill		—			—			—			—			—
Tangible common shareholders’ equity	$	94,034		$	94,869		$	86,242		$	84,911		$	84,578

Common shares outstanding		4,129,027			4,132,986			4,134,059			4,134,219			4,134,914
Tangible book value per common share	$	22.77		$	22.95		$	20.86		$	20.54		$	20.45

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)	3/31/2025			12/31/2024			3/31/2024
Assets	(Unaudited)						(Unaudited)
Cash and due from banks	$	6,517		$	4,499		$	4,425
Interest-bearing deposits in banks		56,637			73,289			53,080
Cash and cash equivalents		63,154			77,788			57,505
Time deposits in banks		2,025			2,270			3,000
Investment securities available for sale, at fair value (amortized cost $39,507, $40,279, and $46,816 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively)		36,318			36,291			42,514
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $12, $12, and $14 (fair value: $2,356, $2,346, and $2,352 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively)		2,488			2,488			2,487
Nonmarketable equity securities		5,480			4,526			5,228
Government guaranteed loans held for sale		—			—			2,226
Government guaranteed loans held for investment, at fair value		57,901			60,833			77,769
Loans held for investment, at amortized cost		1,026,916			1,005,726			857,099
Allowance for credit losses on loans		(16,513	)		(15,512	)		(13,906	)
Net Loans held for investment, at amortized cost		1,010,403			990,214			843,193
Accrued interest receivable		9,153			9,155			7,625
Premises and equipment, net		32,769			33,249			39,327
Loan servicing rights		16,460			16,534			15,742
Right-of-use operating lease assets		15,484			15,814			2,499
Bank owned life insurance		26,696			26,513			25,974
Other real estate owned		132			132			404
Other assets		13,494			12,490			18,401
Assets from discontinued operations		—			—			300
Total assets	$	1,291,957		$	1,288,297		$	1,144,194
Liabilities:
Noninterest-bearing deposit accounts	$	106,236		$	101,743		$	96,977
Interest-bearing transaction accounts		261,074			256,793			250,478
Savings and money market deposit accounts		467,766			474,425			391,915
Time deposits		293,191			310,268			267,945
Total deposits		1,128,267			1,143,229			1,007,315
FHLB borrowings		20,000			—			15,000
Subordinated debentures		5,957			5,956			5,950
Notes payable		1,820			1,934			2,276
Accrued interest payable		1,053			1,036			1,598
Operating lease liabilities		14,102			14,510			2,673
Deferred income tax liabilities		648			301			728
Accrued expenses and other liabilities		10,025			10,411			7,496
Liabilities from discontinued operations		—			—			529
Total liabilities		1,181,872			1,177,377			1,043,565
Shareholders’ equity:	(Unaudited)						(Unaudited)
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $6,395 each period		6,161			6,161			6,161
Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $3,210 each period		3,123			3,123			3,123
Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $6,446 at March 31, 2025, December 31, 2024, and March 31, 2024		6,446			6,446			6,446
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,129,027, 4,132,986, and 4,134,914 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024, respectively		54,657			54,764			54,776
Accumulated other comprehensive loss, net		(2,378	)		(2,956	)		(3,188	)
Unearned compensation		(1,006	)		(752	)		(1,192	)
Retained earnings		43,082			44,134			34,503
Total shareholders’ equity		110,085			110,920			100,629
Total liabilities and shareholders’ equity	$	1,291,957		$	1,288,297		$	1,144,194

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
	For the Quarter Ended
(Dollars in thousands, except per share data)	3/31/2025			12/31/2024			3/31/2024
Interest income:	(Unaudited)			(Unaudited)			(Unaudited)
Loans, including fees	$	19,751		$	20,747		$	18,228
Interest-bearing deposits in banks and other		934			1,007			959
Total interest income		20,685			21,754			19,187
Interest expense:
Deposits		9,431			10,600			10,215
Other		255			501			230
Total interest expense		9,686			11,101			10,445
Net interest income		10,999			10,653			8,742
Provision for credit losses		4,400			4,546			4,058
Net interest income after provision for credit losses		6,599			6,107			4,684
Noninterest income:
Loan servicing income, net		736			582			795
Gain on sale of government guaranteed loans, net		7,327			8,425			8,089
Service charges and fees		449			451			444
Government guaranteed loans fair value gain (loss), net		(755	)		(80	)		3,305
Government guaranteed loan packaging fees		716			773			1,407
Gain on sale of premises and equipment		—			11,649			—
Other noninterest income		278			476			228
Total noninterest income		8,751			22,276			14,268
Noninterest Expense:
Salaries and benefits		7,998			7,351			8,005
Bonus, commissions, and incentives		71			1,074			1,571
Occupancy and equipment		1,634			1,217			1,110
Data processing		2,045			1,749			1,560
Marketing and business development		487			390			588
Professional services		732			803			1,349
Loan origination and collection		1,035			758			1,719
Employee recruiting and development		617			445			597
Regulatory assessments		339			379			282
Other noninterest expense		855			1,169			992
Total noninterest expense		15,813			15,335			17,773
Income (loss) before taxes from continuing operations		(463	)		13,048			1,179
Income tax expense (benefit) from continuing operations		(128	)		3,272			296
Net income (loss) from continuing operations		(335	)		9,776			883
Loss from discontinued operations before income taxes		—			—			(78	)
Income tax benefit from discontinued operations		—			—			(19	)
Net loss from discontinued operations		—			—			(59	)

Net income (loss)		(335	)		9,776			824
Preferred dividends		385			385			385
Net income available to (loss attributable to) common shareholders	$	(720	)	$	9,391		$	439
Basic earnings (loss) per common share:	(Unaudited)			(Unaudited)			(Unaudited)
Continuing operations	$	(0.17	)	$	2.27		$	0.12
Discontinued operations		—			—			(0.01	)
Basic earnings (loss) per common share	$	(0.17	)	$	2.27		$	0.11

Diluted earnings (loss) per common share:
Continuing operations	$	(0.17	)	$	2.11		$	0.12
Discontinued operations		—			—			(0.01	)
Diluted earnings (loss) per common share	$	(0.17	)	$	2.11		$	0.11

Contacts:
Thomas G. Zernick	Scott J. McKim
Chief Executive Officer	Chief Financial Officer
727.399.5680	727.521.7085

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