ocfc-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

________________________________________________

FORM 10-Q

________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-11713

________________________________________________

OceanFirst Financial Corp.

(Exact name of registrant as specified in its charter)

________________________________________________


Delaware			22-3412577
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


110 West Front Street,	Red Bank,	NJ	07701
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (732) 240-4500

________________________________________________

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

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value per share

OCFC

NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒.

As of July 30, 2025, there were 57,385,351 shares of the Registrant’s Common Stock, par value $0.01 per share, outstanding.

Table of Contents

OceanFirst Financial Corp.

INDEX TO FORM 10-Q


		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (unaudited)
	Consolidated Statements of Financial Condition as of June 30 , 2025 (unaudited) and December 31, 2024	19
	Consolidated Statements of Income (unaudited) for the three and six months ended June 30 , 2025 and 2024	20
	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2025 and 2024	21
	Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the three and six months ende d June 30, 2025 and 2024	22
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30 , 2025 and 2024	24
	Notes to Unaudited Consolidated Financial Statements	26
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	18
PART II.	Other Information	47
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48
Signatures		49

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations


FINANCIAL SUMMARY(1)	At or for the Quarters Ended
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
SELECTED FINANCIAL CONDITION DATA:
Total assets	$	13,327,847		$	13,309,278		$	13,321,755
Loans receivable, net of allowance for loan credit losses	10,119,781			10,058,072			9,961,117
Deposits	10,232,442			10,177,023			9,994,017
Total stockholders’ equity	1,643,680			1,709,117			1,676,669
SELECTED OPERATING DATA:
Net interest income	87,636			86,652			82,263
Provision for credit losses	3,039			5,340			3,114
Other income	11,733			11,253			10,985
Operating expenses	71,474			64,294			58,620
Net income	19,085			21,463			24,432
Net income attributable to OceanFirst Financial Corp.	19,046			21,509			24,373
Net income available to common stockholders	16,200			20,505			23,369
Diluted earnings per share	0.28			0.35			0.40
SELECTED FINANCIAL RATIOS:
Book value per common share at end of period	28.64			29.27			28.67
Cash dividend per share	0.20			0.20			0.20
Dividend payout ratio per common share	71.43		%	57.14		%	50.00		%
Stockholders’ equity to total assets	12.33			12.84			12.59
Return on average assets (2) (3) (4)	0.49			0.62			0.70
Return on average stockholders’ equity (2) (3) (4)	3.86			4.85			5.61
Net interest rate spread (5)	2.37			2.35			2.11
Net interest margin (2) (6)	2.91			2.90			2.71
Operating expenses to average assets (2) (4)	2.16			1.96			1.75
Efficiency ratio (4) (7)	71.93			65.67			62.86
Loan-to-deposit ratio (8)	99.50			99.50			100.30
ASSET QUALITY (9):
Non-performing loans (10)	$	33,511		$	36,970		$	33,422
Non-performing assets (10)	41,191			38,887			33,422
Allowance for loan credit losses as a percent of total loans receivable (8) (11)	0.78		%	0.78		%	0.69		%
Allowance for loan credit losses as a percent of total non-performing loans (10) (11)	236.54			213.14			205.97
Non-performing loans as a percent of total loans receivable (8) (10)	0.33			0.37			0.33
Non-performing assets as a percent of total assets (10)	0.31			0.29			0.25

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

(2) Ratios are annualized.

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

(4) Performance ratios for the three months ended June 30, 2025 included a loss on redemption of preferred stock of $1.8 million and a net gain on equity investments of $488,000, or $373,000, net of tax expense. Performance ratios for the three months ended March 31, 2025 included a net gain on equity investments of $205,000, or $156,000, net of tax expense. Performance ratios for the three months ended June 30, 2024 included a net gain on equity investments of $887,000, or $699,000, net of tax expense.

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

(6) Net interest margin represents net interest income as a percentage of average interest-earning assets.

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

(8) Total loans receivable excludes loans held-for-sale.

(9) The quarter ended June 30, 2024 included a single commercial relationship exposure of $7.2 million, which was subsequently resolved in 2024.

(10) Non-performing assets consist of non-performing loans and real estate acquired through foreclosure. Non-performing loans and assets generally consist of all loans 90 days or more past due and other loans in the process of foreclosure. It is the Company’s policy to cease accruing interest on all such loans and to reverse previously accrued interest.

(11) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and purchased with credit deterioration (“PCD”) marks on these loans, not reflected in the allowance for loan credit losses, was $5.0 million, $5.6 million, and $6.1 million at June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

Table of Contents

Summary

OceanFirst Financial Corp. is the holding company for OceanFirst Bank N.A. (the “Bank”), a regional bank serving business and retail customers throughout New Jersey and the major metropolitan areas between Massachusetts and Virginia. The term “Company” refers to OceanFirst Financial Corp., the Bank and all their subsidiaries on a consolidated basis. The Company’s results of operations are primarily dependent on net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and investments, and the interest expense on its interest-bearing liabilities, such as deposits and borrowings. The Company also generates non-interest income such as income from bankcard services, trust and asset management products and services, deposit account services, sales of loans and investments, bank owned life insurance and commercial loan swap income. The Company’s operating expenses primarily consist of compensation and employee benefits, occupancy and equipment, marketing, federal deposit insurance and regulatory assessments, data processing, check card processing, professional fees and other general and administrative expenses. The Company’s results of operations are significantly affected by competition, general economic conditions, including levels of unemployment and real estate values, as well as changes in market interest rates, inflation, government policies, including the imposition of tariffs and retaliatory responses, and actions of regulatory agencies.

Key developments relating to the Company’s financial results and corporate activities for the three months ended June 30, 2025, as compared to the prior linked quarter, were as follows:

•Loan Growth: Total loans increased $59.8 million, representing a 2% annualized growth rate, which included $131.7 million of commercial and industrial loan growth. The commercial loan pipeline reached a record high of $790.8 million, which increased 111% from $375.6 million in the linked quarter.

•Premier Banking: Launched in mid-April and is demonstrating strong progress with approximately 200 new relationships and $115.0 million in new deposits in the first few weeks of operation.

•Capital: The Company repurchased 1,003,550 shares during the quarter and redeemed all of its preferred stock. Book value per share decreased $0.63 to $28.64 as compared to the linked quarter.

During the current quarter, the Company redeemed all of its preferred stock for an aggregate payment of $57.4 million, at a redemption price of $25.00 per share, which resulted in a net loss on redemption of $1.8 million. Additionally, the current quarter included professional fees of $1.6 million related to recruitment fees for the Company’s recent commercial banking hires and non-recurring benefits of $1.1 million in other income.

Net income available to common stockholders for the three and six months ended June 30, 2025 decreased to $16.2 million and $36.7 million, respectively, or $0.28 and $0.63 per diluted share, as compared to $23.4 million and $51.0 million, or $0.40 and $0.87 per diluted share, for the corresponding prior year periods. The dividends paid to preferred stockholders were $1.0 million and $2.0 million for each of the three and six months ended June 30, 2025 and 2024, respectively.

On July 24, 2025, the Company’s Board of Directors declared a quarterly cash dividend on common stock of $0.20 per share. The dividend, related to the quarter ended June 30, 2025, will be paid on August 15, 2025 to common stockholders of record on August 4, 2025.

Table of Contents

Analysis of Net Interest Income

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them. For the three and six months ended June 30, 2025, interest income included net loan fees of $1.2 million and $2.6 million, respectively, as compared to $708,000 and $1.4 million for the same prior year periods.

The following tables set forth certain information relating to the Company for the three and six months ended June 30, 2025 and 2024. The yields and costs, which are annualized, are derived by dividing the income or expense by the average balance of the related assets or liabilities, respectively, for the periods shown except where noted otherwise. Average balances are derived from average daily balances. The yields and costs include certain fees and costs which are considered adjustments to yields.


	For the Three Months Ended June 30,
	2025						2024
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)

Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	111,631	$	1,090	3.92	%	$	132,574	$	1,770	5.37	%
Securities (2)	1,917,114		18,257		3.82		2,058,711		21,607		4.22
Loans receivable, net (3)
Commercial	6,786,611		100,004		5.91		6,845,988		102,620		6.03
Residential real estate	3,091,227		31,861		4.12		2,978,749		29,072		3.90
Home equity loans and lines and other consumer (“other consumer”)	225,311		3,613		6.43		246,024		4,357		7.12

Allowance for loan credit losses, net of deferred loan costs and fees	(66,364)		—		—		(58,270)		—		—
Loans receivable, net	10,036,785		135,478		5.41		10,012,491		136,049		5.46
Total interest-earning assets	12,065,530		154,825		5.14		12,203,776		159,426		5.25
Non-interest-earning assets	1,182,543						1,237,442
Total assets	$	13,248,073					$	13,441,218
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,990,602	20,605		2.07	%	$	3,862,060	21,043		2.19	%
Money market	1,342,194		9,718		2.90		1,183,429		10,482		3.56
Savings	1,029,490		1,680		0.65		1,164,203		2,604		0.90
Time deposits	2,175,564		20,270		3.74		2,337,458		25,942		4.46
Total	8,537,850		52,273		2.46		8,547,150		60,071		2.83
Federal Home Loan Bank (“FHLB”) advances	880,746		9,933		4.52		711,801		8,746		4.94
Securities sold under agreements to repurchase	60,477		419		2.78		72,305		478		2.66
Other borrowings	260,655		4,564		7.02		541,266		7,868		5.85
Total borrowings	1,201,878		14,916		4.98		1,325,372		17,092		5.19
Total interest-bearing liabilities	9,739,728		67,189		2.77		9,872,522		77,163		3.14
Non-interest-bearing deposits	1,639,045						1,626,165
Non-interest-bearing liabilities	186,653						268,078
Total liabilities	11,565,426						11,766,765
Stockholders’ equity	1,682,647						1,674,453
Total liabilities and stockholders’ equity	$	13,248,073					$	13,441,218
Net interest income			$	87,636					$	82,263
Net interest rate spread (4)					2.37	%					2.11	%
Net interest margin (5)					2.91	%					2.71	%
Total cost of deposits (including non-interest-bearing deposits)					2.06	%					2.37	%

Table of Contents



	For the Six Months Ended June 30,
	2025						2024
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	106,230	$	2,073	3.94	%	$	147,883	$	3,995	5.43	%
Securities (2)	1,959,922		37,958		3.91		2,078,566		43,863		4.24
Loans receivable, net (3)
Commercial	6,783,823		198,265		5.89		6,885,518		207,041		6.05
Residential real estate	3,078,524		63,131		4.10		2,976,608		57,668		3.87
Other consumer	226,923		7,101		6.31		247,210		8,461		6.88

Allowance for loan credit losses, net of deferred loan costs and fees	(64,121)		—		—		(58,705)		—		—
Loans receivable, net	10,025,149		268,497		5.39		10,050,631		273,170		5.46
Total interest-earning assets	12,091,301		308,528		5.14		12,277,080		321,028		5.25
Non-interest-earning assets	1,188,506						1,221,889
Total assets	$	13,279,807					$	13,498,969
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	4,062,502	42,039		2.09	%	$	3,894,013	41,838		2.16	%
Money market	1,332,154		19,070		2.89		1,137,716		19,653		3.47
Savings	1,043,674		3,465		0.67		1,259,960		7,066		1.13
Time deposits	2,046,927		38,745		3.82		2,375,760		51,369		4.35
Total	8,485,257		103,319		2.46		8,667,449		119,926		2.78
FHLB Advances	938,200		21,293		4.58		678,309		16,517		4.90
Securities sold under agreements to repurchase	62,385		846		2.73		70,403		889		2.54
Other borrowings	271,840		8,782		6.51		521,084		15,209		5.87
Total borrowings	1,272,425		30,921		4.90		1,269,796		32,615		5.17
Total interest-bearing liabilities	9,757,682		134,240		2.77		9,937,245		152,541		3.09
Non-interest-bearing deposits	1,618,622						1,630,374
Non-interest-bearing liabilities	204,702						257,603
Total liabilities	11,581,006						11,825,222
Stockholders’ equity	1,698,801						1,673,747
Total liabilities and stockholders’ equity	$	13,279,807					$	13,498,969
Net interest income			$	174,288					$	168,487
Net interest rate spread (4)					2.37	%					2.16	%
Net interest margin (5)					2.91	%					2.76	%
Total cost of deposits (including non-interest-bearing deposits)					2.06	%					2.34	%

(1)Average yields and costs are annualized.

(2)Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank (“FRB”) 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.

Table of Contents

Comparison of Financial Condition at June 30, 2025 and December 31, 2024

Total assets decreased by $93.4 million to $13.33 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $91.9 million to $735.6 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $76.9 million to $969.0 million, from $1.05 billion, primarily due to principal repayments. Total loans increased by $67.0 million to $10.19 billion, from $10.12 billion, while the loan pipeline increased by $648.1 million to $954.8 million, from $306.7 million, primarily due to an increase in commercial loans of $593.3 million. Other assets decreased by $33.4 million to $152.3 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

Total liabilities decreased by $34.3 million to $11.68 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $166.1 million to $10.23 billion, from $10.07 billion, primarily due to an increase in time deposits. Time deposits increased to $2.30 billion, from $2.08 billion, representing 22.5% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $448.1 million, partly offset by a decrease in retail time deposits of $229.4 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $133.9 million to $938.7 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

Other liabilities decreased by $63.6 million to $234.8 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 June 30, 2025, including the Company’s common equity tier one capital ratio which declined to 10.99%, driven primarily by stock repurchases and increased lending commitments.

Total stockholders’ equity decreased to $1.64 billion, as compared to $1.70 billion, primarily due to the redemption of preferred stock for $55.5 million and capital returns comprising of dividends and share repurchases, partially offset by net income. Additionally, accumulated other comprehensive loss decreased by $4.4 million primarily due to increases in the fair market value of available-for-sale debt securities, net of tax.

During the six months ended June 30, 2025, the Company repurchased 1,401,945 shares totaling $24.3 million representing a weighted average cost of $17.17. As of June 30, 2025, the Company had 226,284 shares available for repurchase under the authorized repurchase program. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares.

The Company’s stockholders’ equity to assets ratio was 12.33%, as compared to 12.69% and book value per share decreased to $28.64, as compared to $29.08, due to drivers noted above.

Comparison of Operating Results for the Three and Six Months Ended June 30, 2025 and June 30, 2024

General

Net income available to common stockholders decreased to $16.2 million and $36.7 million, respectively, or $0.28 and $0.63 per diluted share, as compared to $23.4 million and $51.0 million, or $0.40 and $0.87 per diluted share, for the corresponding prior year periods. Net income for the three and six months ended June 30, 2025 included net gains on equity investments of $488,000 and $693,000, respectively, which increased net income by $373,000 and $529,000, net of tax. Additionally, net income available to common stockholders for the three and six months ended June 30, 2025 included a net loss on redemption of preferred stock of $1.8 million.

Net income for the three and six months ended June 30, 2024 included net gains on equity investments of $887,000 and $2.8 million, respectively. Net income for the six months ended June 30, 2024 also included a net gain on sale of a portion of its trust business of $1.2 million, and a special Federal Deposit Insurance Corporation (“FDIC”) assessment of $418,000. These items increased net income by $699,000 and $2.7 million, net of tax, for the three and six months ended June 30, 2024.

Interest Income

Interest income for the three and six months ended June 30, 2025 decreased to $154.8 million and $308.5 million, respectively, from $159.4 million and $321.0 million for the corresponding prior year periods. For the three and six months ended June 30, 2025, the average balance of interest-earning assets decreased by $138.2 million and $185.8 million, primarily due to a decrease in securities and, to a lesser extent, commercial loans. For the three and six months ended June 30, 2025, the yield on average interest-earning assets decreased to 5.14% for both current periods, from 5.25% for both the corresponding prior year periods.

Table of Contents

Interest Expense

Three months ended June 30, 2025 vs. June 30, 2024

Interest expense for the three months ended June 30, 2025 decreased to $67.2 million from $77.2 million in the corresponding prior year period. The average balance of interest-bearing liabilities decreased by $132.8 million, primarily due to decreases in other borrowings, partly offset by an increase in FHLB advances. The cost of average interest-bearing liabilities decreased to 2.77% from 3.14% for the corresponding prior year period, primarily due to lower cost of deposits and, to a lesser extent, FHLB advances. The total cost of deposits decreased to 2.06% from 2.37% for the same prior year period.

Six months ended June 30, 2025 vs. June 30, 2024

Interest expense for the six months ended June 30, 2025 decreased to $134.2 million from $152.5 million in the corresponding prior year period. The average balance of interest-bearing liabilities decreased by $179.6 million, primarily due to decreases in total deposits and other borrowings, partly offset by an increase in FHLB advances. The cost of average interest-bearing liabilities decreased to 2.77% from 3.09% for the corresponding prior year period. The total cost of deposits decreased to 2.06% from 2.34% for the same prior year period.

Net Interest Income and Margin

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 corresponding prior year periods, primarily reflecting the net impact of the decreasing interest rate environment. The net interest margin for the three and six months ended June 30, 2025 increased to 2.91% for both current periods, from 2.71% and 2.76% for the same prior year periods, primarily due to the decrease in cost of funds outpacing the decrease in the yield on average interest-earning assets.

Provision for Credit Losses

Provision for credit losses for the three and six months ended June 30, 2025 was $3.0 million and $8.4 million, respectively, as compared to $3.1 million and $3.7 million for the corresponding prior year periods. The current quarter provision was primarily driven by net loan charge-offs of $2.2 million, a net reserve build due to mix-shift into commercial and industrial loans, and an increase in unfunded credit commitments.

For the three and six months ended June 30, 2025 net loan charge-offs were $2.2 million and $2.9 million, respectively, as compared to $1.5 million and $1.8 million for the same prior year periods. The current quarter includes $1.6 million of charge-offs related to two commercial relationships related to the Company’s recent acquisition. Additionally, the current quarter includes charge-offs of $445,000 related to the sale of $2.2 million non-performing residential and consumer loans. The prior year includes the impact of a $1.6 million charge-off on a single commercial real estate relationship.

Non-interest Income

Three months ended June 30, 2025 vs. June 30, 2024

Other income increased to $11.7 million, as compared to $11.0 million. Other income was favorably impacted by non-core operations related to net gains on equity investments of $488,000 in the current quarter, and $887,000 for the prior year quarter. The remaining increase of $1.1 million was primarily driven by increases related to net gain on sale of loans of $757,000 and non-recurring other income of $1.1 million, partly offset by a loss on other real estate operations of $260,000.

Six months ended June 30, 2025 vs. June 30, 2024

Other income decreased to $23.0 million, as compared to $23.3 million. Other income was favorably impacted by non-core operations of $693,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $4.0 million related to net gains on equity investments and sale of a portion of the Company’s trust business. The remaining increase of $3.0 million was primarily driven by increases related to net gain on sale of loans of $1.3 million, commercial loan swap income of $448,000 and non-recurring other income of $1.9 million in the current period, partly offset by a loss on other real estate operations of $276,000.

Non-interest Expense

Three months ended June 30, 2025 vs. June 30, 2024

Operating expenses increased to $71.5 million, as compared to $58.6 million. The primary driver was an increase in compensation and benefits of $7.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and

Table of Contents

the additional commercial banking teams hired during the current quarter. Additional drivers were increases in professional fees of $2.2 million, primarily due to recruitment fees, other operating expenses of $1.9 million, mostly due to additional loan servicing expense, data processing expense of $790,000, partly due to acquisitions at the end of the prior year, and increased marketing spend of $366,000.

Six months ended June 30, 2025 vs. June 30, 2024

Operating expenses increased to $135.8 million, as compared to $117.3 million. Operating expenses were adversely impacted by non-core operations related to FDIC special assessment in the prior year of $418,000. The remaining increase of $18.9 million was driven by an increase in compensation and benefits of $11.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and the additional commercial banking team hires. Additional drivers were increases in other operating expenses of $2.9 million, mostly due to additional loan servicing expense, professional fees of $1.9 million, primarily due to the recruitment fees, data processing of $1.5 million, partly due to acquisitions at the end of the prior year, occupancy of $577,000, and marketing of $484,000.

Income Tax Expense

The provision for income taxes was $5.8 million and $12.6 million for the three and six months ended June 30, 2025, respectively, as compared to $7.1 million and $17.7 million for the same prior year periods. The effective tax rate was 23.2% and 23.7% for the three and six months ended June 30, 2025, respectively, as compared to 22.5% and 25.0% for the same prior year periods. The effective tax rate for the six months ended June 30, 2024 was negatively impacted by 1.6% due to a non-recurring write-off of a deferred tax asset of $1.2 million.

Liquidity and Capital Resources

Liquidity Management

The Company manages its liquidity and funding needs through its Treasury function and the Asset Liability Committee. The Company has an internal policy that addresses liquidity and management monitors the adherence to policy limits to satisfy current and future cash flow needs. The policy includes internal limits, monitoring of key indicators, deposit concentrations, liquidity sources and availability, stress testing, collateral management, and other qualitative and quantitative metrics.

Management monitors cash on a daily basis to determine the liquidity needs of the Bank and OceanFirst Financial Corp. (the “Parent Company”), a separate legal entity from the Bank. Additionally, management performs multiple liquidity stress test scenarios on a periodic basis. As of June 30, 2025, the Bank and the Parent Company continued to maintain adequate liquidity under all stress scenarios. The Company also has a detailed contingency funding plan and obtains comprehensive reporting of funding trends on a monthly and quarterly basis, which are reviewed by management.

The Company continually evaluates its on-balance sheet liquidity, including cash and unpledged securities and funding capacity at the FHLB and FRB Discount Window, and periodically tests each of its lines of credit. As of June 30, 2025, total on-balance sheet liquidity and funding capacity was $3.5 billion.

The Company has a highly operational and granular deposit base, with long-standing client relationships across multiple customer segments providing stable funding. The vast majority of the government deposits are protected by FDIC insurance as well as the State of New Jersey under the Government Unit Deposit Protection Act, which requires uninsured government deposits to be further collateralized by the Bank. At June 30, 2025, the Bank reported $6.11 billion of estimated uninsured deposits in its Call Report. This total included $2.54 billion of collateralized government deposits and $1.84 billion of intercompany deposits of fully consolidated subsidiaries, leaving estimated adjusted uninsured deposits of $1.73 billion, or 16.7% of total deposits. On-balance-sheet liquidity and funding capacity represented 199% of the estimated adjusted uninsured deposits.

The primary sources of liquidity specifically available to the Parent Company are dividends from the Bank, proceeds from the sale of investments, and the issuance of debt and common stock. For the six months ended June 30, 2025, the Parent Company received dividend payments of $62.0 million from the Bank. At June 30, 2025, the Parent Company held $61.6 million in cash and cash equivalents.

Table of Contents

The Bank’s primary sources of funds are deposits, principal and interest payments on loans and investments, FHLB advances, other borrowings and proceeds from the sale of loans and investments. While scheduled payments on loans and securities are predictable sources of funds, deposit flows, loan prepayments, and loan and investment sales are greatly influenced by interest rates, economic conditions, and competition. The Bank has other sources of liquidity if a need for additional funds arises, including lines of credit at multiple financial institutions and access to the FRB Discount Window.

As of June 30, 2025, the Company pledged $7.32 billion of loans with the FHLB and FRB to enhance the Company’s borrowing capacity, which included collateral pledged to the FHLB to obtain a letter of credit to collateralize certain municipal deposits. The Company also pledged $983.6 million of securities to secure borrowings, enhance borrowing capacity, collateralize its repurchase agreements, and for other purposes required by law. The Company had $938.7 million of FHLB advances, including $137.0 million of overnight borrowings as of June 30, 2025, as compared to $1.07 billion of FHLB term advances and no outstanding overnight borrowings from the FHLB at December 31, 2024.

The Company’s cash needs for the six months ended June 30, 2025 were primarily satisfied by principal repayments of debt securities and the increase in deposits, and primarily utilized for the repayment of FHLB advances and the redemption of preferred stock.

Off-Balance Sheet Commitments and Contractual Obligations

In the normal course of business, the Bank routinely enters into various off-balance sheet commitments, primarily relating to the origination and funding of loans. At June 30, 2025, outstanding commitments to originate loans totaled $954.8 million and outstanding undrawn lines of credit totaled $1.45 billion, of which $1.15 billion were commitments to commercial and commercial construction borrowers and $298.5 million were commitments to consumer and residential construction borrowers. Commitments to fund undrawn lines of credit and commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the existing contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company’s exposure to credit risk is represented by the contractual amount of the instruments.

At June 30, 2025, the Company also had various contractual obligations, which included debt obligations of $1.20 billion, including finance lease obligations of $1.3 million, and an additional $16.5 million in operating lease obligations included in other liabilities. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. Time deposits scheduled to mature in one year or less totaled $2.25 billion at June 30, 2025. If these deposits do not remain with the Company, it may need to seek other sources of funds, including other deposit products, advances from the Federal Home Loan Bank of New York and other borrowing sources. Depending on market conditions, the Company may be required to pay higher rates on such deposits or borrowings than it currently pays.

Liquidity Used in Stock Repurchases and Cash Dividends

Under the Company’s stock repurchase program, shares of OceanFirst Financial Corp. common stock may be purchased in the open market and through other privately-negotiated transactions, from time-to-time, depending on market conditions. The repurchased shares are held as treasury stock for general corporate purposes. For the three and six months ended June 30, 2025, the Company repurchased 1,003,550 and 1,401,945 shares of its common stock, respectively, totaling $17.4 million and $24.3 million, respectively. Of these repurchased shares for the three and six months ended June 30, 2025, 971 and 77,029 shares were repurchased outside of the Company’s stock repurchase program. The Company repurchased these shares from employees that elected to sell shares to cover their withholding tax obligations on vested stock awards and options. At June 30, 2025, there were 226,284 shares available to be repurchased under the authorized stock repurchase program. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares.

Cash dividends on common stock declared and paid during the six months ended June 30, 2025 were $23.3 million. Cash dividends on preferred stock declared and paid during the six months ended June 30, 2025 were $2.0 million. On May 15, 2025, the Company redeemed all 57,370 shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. The aggregate payment of $57.4 million, at a redemption price of $25.00 per share, resulted in a net loss on redemption of $1.8 million.

The Company’s ability to continue to repurchase shares of common stock and pay dividends remains dependent upon capital distributions from the Bank, which may be adversely affected by capital restraints imposed by applicable regulations. If applicable regulations or regulators prevent the Bank from paying a dividend to the Company, the Company may not have the liquidity necessary to repurchase shares of common stock or pay a dividend in the future or pay a dividend at the same rate as

Table of Contents

historically paid or be able to meet current debt obligations. Additionally, regulations of the Federal Reserve may prevent the Company from either paying or increasing the cash dividend to common stockholders. These regulatory policies may affect the ability of the Parent Company to pay dividends, repurchase shares of common stock, or otherwise engage in capital distributions.

Capital Management

The Company manages its capital sources, uses, and expected future needs through its Treasury function and the Asset Liability Committee. The Company has an internal policy that addresses capital and management monitors the adherence to policy limits to satisfy current and future capital needs. The policy includes internal limits, monitoring of key indicators, sources and availability, intercompany transactions, forecasts and stress testing, and other qualitative and quantitative metrics.

Additionally, management performs multiple capital stress test scenarios periodically, varying loan growth, earnings, access to the capital markets, credit losses, and mark-to-market losses in the investment portfolio, including both available-for-sale and held-to-maturity. As of June 30, 2025, the Bank and Parent Company continued to maintain adequate capital under all stress scenarios. The Bank and the Parent Company also have detailed contingency capital plans and obtain comprehensive reporting of capital trends on a regular basis, which are reviewed by management and the Board.

Regulatory Capital Requirements

As of June 30, 2025 and December 31, 2024, the Company and the Bank satisfied all regulatory capital requirements currently applicable as follows (dollars in thousands):


	Actual				For capital adequacy purposes					To be well-capitalized under prompt corrective action
As of June 30, 2025	Amount		Ratio		Amount		Ratio			Amount		Ratio
Company:
Tier 1 capital (to average assets)	$	1,176,655	9.26	%	$	508,466	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	1,101,430		10.99		701,546		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,176,655		11.74		851,878		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,358,684		13.56		1,052,319		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,148,368	9.10	%	$	504,941	4.00	%		$	631,176	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,148,368		11.56		695,569		7.00		(1)	645,886		6.50
Tier 1 capital (to risk-weighted assets)	1,148,368		11.56		844,620		8.50		(1)	794,936		8.00
Total capital (to risk-weighted assets)	1,230,397		12.38		1,043,354		10.50		(1)	993,670		10.00
As of December 31, 2024
Company:
Tier 1 capital (to average assets)	$	1,235,832	9.50	%	$	520,239	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	1,105,180		11.17		692,897		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,235,832		12.49		841,375		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,437,278		14.52		1,039,345		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,161,564	8.99	%	$	516,798	4.00	%		$	645,998	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,161,564		11.83		687,383		7.00		(1)	638,284		6.50
Tier 1 capital (to risk-weighted assets)	1,161,564		11.83		834,679		8.50		(1)	785,580		8.00
Total capital (to risk-weighted assets)	1,238,011		12.61		1,031,074		10.50		(1)	981,975		10.00

(1)Includes the Capital Conservation Buffer of 2.50%.

At June 30, 2025 and December 31, 2024, the Company and the Bank satisfied the criteria to be “well-capitalized” under the Prompt Corrective Action regulations.

Table of Contents

At June 30, 2025 and December 31, 2024, the Company maintained a stockholders’ equity to total assets ratio of 12.33% and 12.69%, respectively.

Lending Activities

Loan Portfolio Composition. At June 30, 2025, the Company had total loans outstanding of $10.19 billion, of which $5.07 billion, or 49.8% of total loans, were investor owned commercial real estate, multi-family, and construction (including residential development loans), (collectively, “commercial real estate - investor”). The remainder of the portfolio consisted of commercial and industrial loans of which $914.4 million were commercial and industrial - real estate, or 9.0% of total loans; and $862.5 million were commercial and industrial - non-real estate loans, or 8.5% of total loans; $3.12 billion were residential real estate loans, or 30.6% of total loans; and $220.8 million were consumer loans, primarily home equity loans and lines of credit, or 2.2% of total loans.

The Company reclassified loans secured by owner-occupied commercial real estate to commercial and industrial - real estate to reflect the variation in the management and underlying risk profile of such loans as compared with non-owner-occupied (“investor”) commercial real estate loans. Similarly, the Company also reclassified commercial and industrial loans that were not secured by real estate to commercial and industrial - non-real estate. Collectively, these two loan portfolios are referred to as ‘Commercial and industrial” loans.

Commercial Real Estate - Investor Owned. At June 30, 2025, the Bank’s total investor owned commercial real estate loans outstanding were $5.07 billion, or 49.8% of total loans, as compared to $5.29 billion, or 52.3% of total loans at December 31, 2024. The Bank originates investor owned commercial real estate loans that are secured by properties, or properties under construction, that are generally used for business purposes such as office, industrial, multi-family, or retail facilities. A substantial majority of the Bank’s investor owned commercial real estate loans are located in its primary market area.

The Bank performs extensive due diligence in underwriting commercial real estate loans due to the larger loan amounts and the riskier nature of such loans. The Bank assesses and mitigates the risk in several ways, including inspection of all such properties and the review of the overall financial condition of the borrower and guarantors, which include, for example, the review of the rent rolls and applicable leases/lease terms and conditions and the verification of income. A tenant analysis and market analysis are part of the underwriting.

Investor owned commercial real estate loans are among the largest of the Bank’s loans and may have higher credit risk and lending spreads. Because repayment is often dependent on the successful management of the properties, repayment of commercial real estate loans may be affected by adverse conditions in the real estate market or the economy, as a result, the Bank is particularly vigilant of this portfolio. The Bank believes this portfolio is highly diversified with loans secured by a variety of property types and the portfolio exhibits stable credit quality.

The following table presents the Company’s commercial real estate - investor owned loans by industry as of June 30, 2025:


	As of June 30, 2025
(dollars in thousands)	Amount		Percent of Total		Weighted Average LTV (1)		Weighted Average Debt Service Coverage Ratio (2)
Office	$	491,150	11	%	48	%	1.9x
Medical	274,962		6		56		1.8
Credit Tenant	257,308		6		65		1.5
Total Office (3)	1,023,420		23		55		1.8
Retail	1,021,210		23		53		2.0
Multi-family (4)	833,065		19		62		1.7
Industrial/warehouse	731,256		16		48		2.2
Hospitality	174,935		4		46		2.0
Other (5)	671,282		15		59		1.1
Total	4,455,168		100	%	55		1.8
Construction	612,957
Total CRE investor owned	$	5,068,125

(1) Represents the weighted average of loan balances as of June 30, 2025 divided by their most recent appraisal value, which is generally obtained at the time of origination.

Table of Contents

(2) Represents the weighted average of net operating income on the property before debt service divided by the loan’s respective annual debt service based on the most recent credit review of the borrower.

(3) Central business district (“CBD”) exposure represented $120 million, or 7.3%, of the total office loan balance at June 30, 2025. Office CBD loans had a weighted average LTV of 54% and weighted average debt service coverage ratio of 1.8x at June 30, 2025. $85 million, or 71%, of the total office CBD exposure are to credit tenants, life sciences and medical borrowers at June 30, 2025. New York City office CBD loans represented $7 million, or 0.05% of the Company’s total assets at June 30, 2025.

(4) New York City rent-regulated multi-family loans, where the property has more than 50% of its units rent-regulated, represented $31 million, or 0.23% of the Company’s total assets at June 30, 2025.

(5) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other.

The following table presents total commercial real estate - investor owned loans by geography (generally based on location of collateral) as of June 30, 2025:


	As of June 30, 2025
(dollars in thousands)	Amount		Percent of Total
New York	$	1,388,009	31	%
Pennsylvania and Delaware	1,251,376		28
New Jersey	1,152,285		26
Massachusetts	127,915		3
Maryland and District of Columbia	142,770		3
Other	392,813		9
Total	4,455,168		100	%
Construction	612,957
Total CRE investor owned	$	5,068,125

Asset quality. The following table sets forth information regarding the Company’s non-performing assets, consisting of non-performing loans and other real estate acquired through foreclosure. It is the policy of the Company to cease accruing interest on loans 90 days or more past due or in the process of foreclosure.


	June 30,			December 31,
	2025			2024
	(dollars in thousands)
Non-performing assets (1):
Commercial real estate – investor	$	20,457		$	17,000
Commercial and industrial:
Commercial and industrial - real estate	4,499			4,787
Commercial and industrial - non-real estate	311			32
Total commercial and industrial	4,810			4,819
Residential real estate (2)	5,318			10,644
Other consumer (2)	2,926			3,064

Total non-performing loans	33,511			35,527

Other real estate owned	7,680			1,811
Total non-performing assets	$	41,191		$	37,338
PCD loans, net of allowance for loan credit losses	$	20,934		$	22,006
Delinquent loans 30-89 days	$	14,740		$	36,550
Allowance for loan credit losses as a percent of total loans (3)	0.78		%	0.73		%
Allowance for loan credit losses as a percent of total non-performing loans (3)	236.54			207.19
Non-performing loans as a percent of total loans receivable	0.33			0.35
Non-performing assets as a percent of total assets	0.31			0.28

(1)Non-performing assets consist of non-performing loans and real estate acquired through foreclosure. Non-performing loans consist of all loans 90 days or more past due and other loans in the process of foreclosure.

(2)The six months ended June 30, 2025 included the sale of non-performing residential and consumer loans of $7.3 million.

Table of Contents

(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, were $5.0 million and $6.0 million at June 30, 2025 and December 31, 2024, respectively.

Overall asset quality metrics remained stable. The Company’s non-performing loans represented 0.33% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 236.54%, as compared to 207.19%. The level of 30 to 89 days delinquent loans decreased to $14.7 million, from $36.6 million. The Company’s other real estate owned increased to $7.7 million from $1.8 million, primarily due to one commercial loan. The Company’s allowance for loan credit losses to total loans was 0.78%, as compared to 0.73%.

The Company classifies loans (other than loans held-for-sale) and other real estate owned in accordance with regulatory guidelines. The table below represents Special Mention and Substandard loans (other than loans held-for-sale) and other real estate owned (in thousands):


	June 30,		December 31,
	2025		2024
Special Mention	$	21,521	$	54,524
Substandard	131,792		105,344
Total	$	153,313	$	159,868

Special mention and substandard loans (other than loans held-for-sale) and other real estate owned decreased by $6.6 million to $153.3 million at June 30, 2025 from $159.9 million at December 31, 2024. Net migrations from special mention to substandard were primarily due to one commercial relationship totaling $21.3 million which migrated during the six months ended June 30, 2025.

Critical Accounting Policies and Estimates

Note 1 to the Company’s Audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as supplemented by this report, contains a summary of significant accounting policies. Various elements of these accounting policies, by their nature, are subject to estimation techniques, valuation assumptions and other subjective assessments. Certain assets are carried on the consolidated statements of financial condition at estimated fair value or the lower of cost or estimated fair value.

Policies with respect to the methodology used to determine the allowance for credit losses is a critical accounting policy and estimate because of its importance to the presentation of the Company’s financial condition and results of operations and high level of subjectivity. The critical accounting policy involves a higher degree of complexity and requires management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions, and estimates could result in material differences in the results of operations or financial condition. The critical accounting policy and its application is reviewed periodically, and at least annually, with the Audit Committee of the Board of Directors.

Goodwill in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other, was a critical accounting estimate in the preparation of the consolidated financial statements at June 30, 2025 and December 31, 2024.

Significant negative industry or economic trends, including declines in the market price of the Company’s stock, reduced estimates of future cash flows or business disruptions could result in impairments to goodwill in the future, which may result in recording an impairment loss. Any resulting impairment loss may have a material adverse impact on the Company’s financial condition and results of operations and is considered a non-cash event with no impact to the Company’s regulatory capital ratios, liquidity position, and ongoing operations.

Management continued to carefully assess and evaluate all available information for potential triggering events and concluded no triggering events were identified through the reporting period. The Company customarily performs its annual goodwill impairment assessment during the third quarter.

Table of Contents

Impact of New Accounting Pronouncements

Accounting Pronouncements Adopted in 2025

In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, “Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement”. The amendments in this ASU require that a joint venture, upon formation, apply a new basis of accounting and initially measure assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance. This update will be effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Early adoption is permitted. The adoption of this standard did not have an impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect this standard to have a material impact on the Company’s consolidated financial statements.

In November 2024, FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”. The amendments in this ASU require expanded disclosure and disaggregation of certain costs and expenses including, but not limited to, purchases of inventory, employee compensation, depreciation, depletion, and amortization. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In November 2024, FASB issued ASU 2024-04, “Debt - Debt with Conversion and Other Options (Subtopic 470-20)”. The amendments in this ASU clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2025, and for interim periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In May 2025, FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810)”. The amendments in this ASU require an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquired is a variable interest entity, to determine which entity is the accounting acquirer. The amendment requires that an entity apply the new guidance prospectively to any acquisition transaction that occurs after the initial application date. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company does not expect this standard to have a material impact on the Company’s consolidated financial statement.

Table of Contents

Private Securities Litigation Reform Act Safe Harbor Statement

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 and retaliatory responses, 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 investor sentiment and 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. These risks 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.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Management of Interest Rate Risk (“IRR”)

Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from the IRR inherent in its lending, investment, deposit-taking, and funding activities. The Company’s profitability is affected by fluctuations in interest rates. Changes in interest rates may negatively or positively impact the Company’s earnings to the extent that the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis. Changes in interest rates may also negatively or positively impact the market value of the Company’s investment securities, in particular fixed-rate instruments. Net gains or losses in available-for-sale securities can increase or decrease accumulated other comprehensive income or loss and total stockholders’ equity. Management actively monitors and manages IRR. The extent of the movement of interest rates, higher or lower, is an uncertainty that could have a substantial impact on the earnings and stockholders’ equity of the Company.

The principal objectives of the IRR management function are to: evaluate the IRR inherent in the Company’s business; determine the level of risk appropriate given the Company’s business focus, operating and interest rate environment, capital and liquidity requirements, and performance objectives; and manage the risk consistent with Board approved guidelines. The Company maintains an Asset Liability Committee (“ALCO”) consisting of members of management, responsible for reviewing asset liability policies and the IRR position. ALCO meets regularly and reports the Company’s IRR position and trends to the Board on a regular basis.

The Company utilizes a number of strategies to manage IRR including, but not limited to: (1) managing the origination, purchase, sale, and retention of various types of loans with differing IRR profiles; (2) attempting to reduce the overall interest rate sensitivity of liabilities by emphasizing stable relationship-based deposits and longer-term deposits; (3) selectively purchasing interest rate swaps and caps converting the rates for customer loans to manage individual loans and the Company’s overall IRR profile; (4) managing the investment portfolio IRR profile; (5) managing the maturities and rate structures of borrowings and time deposits; and (6) purchasing interest rate swaps to manage overall balance sheet interest rate risk.

The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” Interest rate sensitivity is monitored through the use of an IRR model, which measures the change in the institution’s economic value of equity (“EVE”) and net interest income under various interest rate scenarios. EVE is the difference between the net present value of assets, liabilities and off-balance-sheet contracts. Interest rate sensitivity is monitored by management through the use of a model which measures IRR by modeling the change in EVE and net interest income over a range of interest rate scenarios. Modeled assets and liabilities are assumed to reprice at respective repricing or maturity dates. Pricing caps and floors are included in the results, where applicable. The Company uses prepayment expectations set forth by market sources as well as Company generated data where applicable. Generally, cash flows from loans and securities are assumed to be reinvested to maintain a static balance sheet. Other assumptions about balance sheet mix are generally held constant. The Company’s interest rate sensitivity should be reviewed in conjunction with the financial statements and notes thereto contained in the 2024 Form 10-K and this Quarterly Report on Form 10-Q.

The methodologies and assumptions used in this analysis are periodically evaluated and refined in response to changes in the market environment, changes in the Company’s balance sheet composition, enhancements in the Company’s modeling and other factors. Such changes may affect historical comparisons of these results. For loans, investments, borrowings and time deposits, the fair value used in the EVE closely aligns with the Company’s fair value measurements defined within Note 7, Fair Value Measurements to the Consolidated Financial Statements. However, for non-maturity deposits, the fair value differs for EVE as it also considers the likelihood of deposit withdrawals and the current weighted average deposit rate relative to market rates. The Company’s weighted average age of non-maturity deposit accounts is approximately 12.1 years, and the weighted average cost was 2.04%.

Table of Contents

The Company performs a variety of EVE and twelve-month net interest income sensitivity scenarios. The following table sets forth sensitivity for a specific range of interest rate scenarios as of June 30, 2025 and December 31, 2024.


	June 30, 2025				December 31, 2024
Change in Interest Rates in Basis Points	Economic Value of Equity			Net Interest Income			Economic Value of Equity			Net Interest Income
(Rate Shock)		% Change			% Change			% Change			% Change
300		(3.7)	%		(2.2)	%		(6.2)	%		(0.8)	%
200		(1.8)			(0.9)			(3.6)			0.1
100		(0.6)			(0.1)			(1.5)			0.4
Static		—			—			—			—
(100)		(0.3)			(0.2)			1.5			(0.5)
(200)		(2.5)			(0.7)			1.8			(1.3)
(300)		(7.0)			(1.4)			(0.6)			(2.6)

The net interest income sensitivity results indicate that at June 30, 2025 the Company was modestly liability sensitive to rising rate scenarios and modestly asset sensitive to falling rate scenarios. The change in sensitivity between June 30, 2025 and December 31, 2024 was impacted by an increase in fixed-rate loans, a decrease in floating-rate investments and a deposit mix shift within non-maturity deposits into lower betas, partially offset by an increase in short-term time deposits, and overnight and short-term borrowings.

Overall, the measure of EVE at risk decreased in both rising and falling rate scenarios from December 31, 2024 to June 30, 2025. This was the result of an increase in fixed-rate loans, a decrease in floating-rate investments and a deposit mix shift within non-maturity deposits into lower betas and longer average lives as well as a reduction in deposit costs.

Certain shortcomings are inherent in the methodology used in the EVE and net interest income IRR measurements. The model requires the making of certain assumptions, which may tend to oversimplify the manner in which actual yields and costs respond to changes in market interest rates. First, the model assumes that the composition of the Company’s interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured. Second, the model assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Third, the model does not take into account the Company’s business or strategic plans or any steps it may take to respond to changes in rates. Fourth, prepayment, rate sensitivity, and average life assumptions can have a significant impact on the IRR model results. Lastly, the model utilizes data derived from historical performance. Accordingly, although the above measurements provide an indication of the Company’s IRR exposure at a particular point in time, such measurements are not intended to provide a precise forecast of the effect of changes in market interest rates.

Item 4. Controls and Procedures

(a) Disclosure Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective. Disclosure controls and procedures are the controls and other procedures that are designed to ensure that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands, except per share amounts)


	June 30,		December 31,
	2025		2024
	(Unaudited)
Assets
Cash and due from banks	$	170,599	$	123,615

Debt securities available-for-sale, at estimated fair value	735,561		827,500
Debt securities held-to-maturity, net of allowance for securities credit losses of $809 at June 30, 2025 and $967 at December 31, 2024 (estimated fair value of $896,090 at June 30, 2025 and $952,917 at December 31, 2024)	968,969		1,045,875
Equity investments	87,808		84,104
Restricted equity investments, at cost	106,538		108,634
Loans receivable, net of allowance for loan credit losses of $79,266 at June 30, 2025 and $73,607 at December 31, 2024	10,119,781		10,055,429
Loans held-for-sale	15,744		21,211
Interest and dividends receivable	44,032		45,914
Other real estate owned	7,680		1,811
Premises and equipment, net	113,474		115,256

Bank owned life insurance	271,184		270,208


Goodwill	523,308		523,308
Intangibles	10,834		12,680
Other assets	152,335		185,702
Total assets	$	13,327,847	$	13,421,247
Liabilities and Stockholders’ Equity
Deposits	$	10,232,442	$	10,066,342
Federal Home Loan Bank (“FHLB”) advances	938,687		1,072,611
Securities sold under agreements to repurchase with customers	61,490		60,567
Other borrowings	198,019		197,546
Advances by borrowers for taxes and insurance	18,759		23,031
Other liabilities	234,770		298,393
Total liabilities	11,684,167		11,718,490
Stockholders’ equity:
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, 0 and 57,370 shares issued at June 30, 2025 and December 31, 2024, respectively.	—		1
Common stock, $0.01 par value, 150,000,000 shares authorized, 62,904,241 and 62,182,767 shares issued at June 30, 2025 and December 31, 2024, respectively; and 57,383,975 and 58,554,871 shares outstanding at June 30, 2025 and December 31, 2024, respectively	625		613
Additional paid-in capital	1,115,441		1,168,321
Retained earnings	655,095		641,727
Accumulated other comprehensive loss	(11,437)		(15,853)
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")	(1,922)		(2,542)
Treasury stock, 5,520,266 and 4,118,321 shares at June 30, 2025 and December 31, 2024, respectively	(114,956)		(90,617)


OceanFirst Financial Corp. stockholders’ equity	1,642,846		1,701,650
Non-controlling interest	834		1,107
Total stockholders’ equity	1,643,680		1,702,757
Total liabilities and stockholders’ equity	$	13,327,847	$	13,421,247

See accompanying Notes to Unaudited Consolidated Financial Statements.

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
	(Unaudited)				(Unaudited)
Interest income:
Loans	$	135,478	$	136,049	$	268,497	$	273,170
Debt securities	15,950		19,039		33,220		38,900
Equity investments and other	3,397		4,338		6,811		8,958
Total interest income	154,825		159,426		308,528		321,028
Interest expense:
Deposits	52,273		60,071		103,319		119,926
Borrowed funds	14,916		17,092		30,921		32,615
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
Net interest income after provision for credit losses	84,597		79,149		165,909		164,782
Other income (loss):
Bankcard services revenue	1,619		1,571		3,082		2,987
Trust and asset management revenue	374		419		780		945
Fees and service charges	4,969		5,015		9,681		9,488



Net gain on sales of loans	1,177		420		2,035		777
Net gain on equity investments	488		887		693		2,810
Net loss from other real estate operations	(260)		—		(276)		—
Income from bank owned life insurance	1,786		1,726		3,638		3,588
Commercial loan swap income	207		241		827		379
Other	1,373		706		2,526		2,297
Total other income	11,733		10,985		22,986		23,271
Operating expenses:
Compensation and employee benefits	40,242		33,136		76,982		65,895
Occupancy	5,454		5,175		10,951		10,374
Equipment	869		1,068		1,790		2,198
Marketing	1,541		1,175		2,649		2,165
Federal deposit insurance and regulatory assessments	2,898		2,685		5,881		5,820
Data processing	6,808		6,018		13,455		11,974
Check card processing	1,156		1,075		2,326		2,125
Professional fees	4,336		2,161		6,761		4,893

Amortization of intangibles	906		810		1,846		1,654


Other operating expenses	7,264		5,317		13,127		10,194
Total operating expenses	71,474		58,620		135,768		117,292
Income before provision for income taxes	24,856		31,514		53,127		70,761
Provision for income taxes	5,771		7,082		12,579		17,719
Net income	19,085		24,432		40,548		53,042
Net income (loss) attributable to non-controlling interest	39		59		(7)		2
Net income attributable to OceanFirst Financial Corp.	19,046		24,373		40,555		53,040
Dividends on preferred shares	1,004		1,004		2,008		2,008
Loss on redemption of preferred stock	1,842		—		1,842		—
Net income available to common stockholders	$	16,200	$	23,369	$	36,705	$	51,032
Basic earnings per share	$	0.28	$	0.40	$	0.63	$	0.87
Diluted earnings per share	$	0.28	$	0.40	$	0.63	$	0.87
Average basic shares outstanding	57,738		58,356		57,889		58,489
Average diluted shares outstanding	57,740		58,357		57,891		58,490

See accompanying Notes to Unaudited Consolidated Financial Statements.

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2025		2024		2025		2024
	(Unaudited)				(Unaudited)
Net income	$	19,085	$	24,432	$	40,548	$	53,042
Other comprehensive income:
Net unrealized gain on debt securities (net of tax expense of $542 and $1,330 in 2025 and $710 and $1,344 in 2024, respectively)	1,693		2,226		4,166		4,219
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $74 and $118 in 2025 and $40 and $82 in 2024, respectively)	109		57		173		118
Unrealized loss on derivative hedges (net of tax benefit of $31 and $30 in 2025 and $98 and $400 in 2024, respectively)	(93)		(306)		(93)		(1,255)
Reclassification adjustment for losses included in net income (net of tax expense of $35 and $55 in 2025 and $81 and $190 in 2024, respectively)	106		253		170		595

Total other comprehensive income, net of tax	1,815		2,230		4,416		3,677
Total comprehensive income	20,900		26,662		44,964		56,719
Less: comprehensive income (loss) attributable to non-controlling interest	39		59		(7)		2
Comprehensive income attributable to OceanFirst Financial Corp.	20,861		26,603		44,971		56,717
Less: dividends on preferred shares	1,004		1,004		2,008		2,008
Less: loss on redemption of preferred stock	1,842		—		1,842		—
Total comprehensive income available to common stockholders	$	18,015	$	25,599	$	41,121	$	54,709

See accompanying Notes to Unaudited Consolidated Financial Statements.

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands, except per share amounts)

(Unaudited)

For the Three Months Ended June 30, 2025 and 2024


	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Employee Stock Ownership Plan		Treasury Stock		Non-Controlling Interest		Total
Balance at March 31, 2024	$	1	$	613	$	1,163,282	$	608,355	$	(19,415)	$	(3,470)	$	(84,254)	$	725	$	1,665,837
Net income	—		—		—		24,373		—		—		—		59		24,432
Other comprehensive income, net of tax	—		—		—		—		2,230		—		—		—		2,230
Stock compensation	—		—		1,591		—		—		—		—		—		1,591




Allocation of ESOP stock	—		—		(60)		—		—		309		—		—		249
Cash dividend - $0.20 per share	—		—		—		(11,703)		—		—		—		—		(11,703)


Repurchase 338,087 shares of common stock	—		—		—		—		—		—		(4,963)		—		(4,963)



Preferred stock dividend	—		—		—		(1,004)		—		—		—		—		(1,004)


Balance at June 30, 2024	$	1	$	613	$	1,164,813	$	620,021	$	(17,185)	$	(3,161)	$	(89,217)	$	784	$	1,676,669

Balance at March 31, 2025	$	1	$	625	$	1,170,179	$	650,546	$	(13,252)	$	(2,232)	$	(97,545)	$	795	$	1,709,117
Net income	—		—		—		19,046		—		—		—		39		19,085
Other comprehensive income, net of tax	—		—		—		—		1,815		—		—		—		1,815
Stock compensation	—		—		808		—		—		—		—		—		808



Allocation of ESOP stock	—		—		(36)		—		—		310		—		—		274
Cash dividend - $0.20 per share	—		—		—		(11,651)		—		—		—		—		(11,651)
Exercise of stock options	—		—		17		—		—		—		—		—		17
Repurchase of 1,003,550 shares of common stock	—		—		—		—		—		—		(17,411)		—		(17,411)



Preferred stock dividend	—		—		—		(1,004)		—		—		—		—		(1,004)
Redemption of preferred stock	(1)		—		(55,527)		(1,842)		—		—		—		—		(57,370)




Balance at June 30, 2025	$	—	$	625	$	1,115,441	$	655,095	$	(11,437)	$	(1,922)	$	(114,956)	$	834	$	1,643,680

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands, except per share amounts)

(Unaudited)

For the Six Months Ended June 30, 2025 and 2024


	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Employee Stock Ownership Plan		Treasury Stock		Non-Controlling Interest		Total
Balance at December 31, 2023	$	1	$	613	$	1,161,755	$	592,542	$	(20,862)	$	(3,780)	$	(69,106)	$	782	$	1,661,945
Net income	—		—		—		53,040		—		—		—		2		53,042
Other comprehensive income, net of tax	—		—		—		—		3,677		—		—		—		3,677
Stock compensation	—		—		3,132		—		—		—		—		—		3,132




Allocation of ESOP stock	—		—		(103)		—		—		619		—		—		516
Cash dividend - $0.40 per share	—		—		—		(23,553)		—		—		—		—		(23,553)

Repurchase 1,295,914 shares of common stock	—		—		29		—		—		—		(20,111)		—		(20,082)


Preferred stock dividend	—		—		—		(2,008)		—		—		—		—		(2,008)


Balance at June 30, 2024	$	1	$	613	$	1,164,813	$	620,021	$	(17,185)	$	(3,161)	$	(89,217)	$	784	$	1,676,669

Balance at December 31, 2024	$	1	$	613	$	1,168,321	$	641,727	$	(15,853)	$	(2,542)	$	(90,617)	$	1,107	$	1,702,757
Net income (loss)	—		—		—		40,555		—		—		—		(7)		40,548
Other comprehensive income, net of tax	—		—		—		—		4,416		—		—		—		4,416
Stock compensation	—		12		2,534		—		—		—		—		—		2,546



Allocation of ESOP stock	—		—		(54)		—		—		620		—		—		566
Cash dividend - $0.40 per share	—		—		—		(23,337)		—		—		—		—		(23,337)
Exercise of stock options	—		—		136		—		—		—		—		—		136
Repurchase 1,401,945 shares of common stock	—		—		31		—		—		—		(24,339)		—		(24,308)



Preferred stock dividend	—		—		—		(2,008)		—		—		—		—		(2,008)
Redemption of preferred stock	(1)		—		(55,527)		(1,842)		—		—		—		—		(57,370)

Distributions to non-controlling interest	—		—		—		—		—		—		—		(266)		(266)


Balance at June 30, 2025	$	—	$	625	$	1,115,441	$	655,095	$	(11,437)	$	(1,922)	$	(114,956)	$	834	$	1,643,680

See accompanying Notes to Unaudited Consolidated Financial Statements.

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in thousands)


	For the Six Months Ended June 30,
	2025		2024
	(Unaudited)
Cash flows from operating activities:
Net income	$	40,548	$	53,042
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	5,083		5,696
Allocation of ESOP stock	566		516
Stock compensation	2,546		3,132

Net excess tax expense on stock compensation	195		365
Amortization of servicing asset	163		120
Net premium amortization in excess of discount accretion on securities	82		349
Net amortization of deferred costs on borrowings	239		309
Amortization of intangibles	1,846		1,654
Net accretion of purchase accounting adjustments	(691)		(2,056)
Net amortization of deferred fees/costs and premiums/discounts on loans	(4,668)		(1,103)
Provision for credit losses	8,379		3,705
Net loss on sale of other real estate owned	22		—

Net loss (gain) on sale of fixed assets	2		(168)
Net loss on sales of available-for-sale securities	56		106
Net gain on equity investments	(693)		(2,810)
Net gain on sales of loans	(2,035)		(777)
Proceeds from sales of residential loans held for sale	249,458		75,786
Residential loans originated for sale	(241,956)		(71,905)
Write down of other real estate owned	194		—
Increase in value of bank owned life insurance	(3,638)		(4,181)

Decrease in interest and dividends receivable	1,882		898
Deferred tax (benefit) provision	(39)		920


Decrease (increase) in other assets	33,053		(23,414)
(Decrease) increase in other liabilities	(63,797)		29,644
Total adjustments	(13,751)		16,786
Net cash provided by operating activities	26,797		69,828
Cash flows from investing activities:
Net (increase) decrease in loans receivable	(56,273)		174,954

Proceeds from sales of non-performing loans	6,361		—
Purchase of loan pools	(26,859)		—
Discounts received on purchased loan pool	2,562		—
Purchase of debt securities available-for-sale	(51,661)		(14,280)
Purchase of debt securities held-to-maturity	—		(6,069)
Purchase of equity investments	(3,220)		(1,495)
Proceeds from maturities and calls of debt securities available-for-sale	3,250		15,410
Proceeds from maturities and calls of debt securities held-to-maturity	27,004		11,490
Proceeds from sales of debt securities available-for-sale	5,444		2,394


Principal repayments on debt securities available-for-sale	139,898		34,496
Principal repayments on debt securities held-to-maturity	51,515		49,286
Proceeds from bank owned life insurance	2,662		2,812
Proceeds from the redemption of restricted equity investments	127,306		55,020
Purchases of restricted equity investments	(125,210)		(53,933)
Proceeds from sale of other real estate owned	402		—

Purchases of premises and equipment	(3,249)		(4,862)

Proceeds from disposal of premises and equipment	—		3,369



Net cash provided by investing activities	99,932		268,592

Table of Contents

OceanFirst Financial Corp.

CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)

(dollars in thousands)


	For the Six Months Ended June 30,
	2025		2024
	(Unaudited)
Cash flows from financing activities:
Increase (decrease) in deposits	$	166,102	$	(440,854)
Increase in short-term borrowings	885		6,807
Net repayment of FHLB advances	(133,924)		(59,299)
Net proceeds from other borrowings	—		227,495




(Decrease) increase in advances by borrowers for taxes and insurance	(4,272)		2,761
Exercise of stock options	136		—
Payment of employee taxes withheld from stock awards and phantom stock units	(1,383)		(2,207)
Purchase of treasury stock	(24,308)		(20,082)


Dividends paid	(25,345)		(25,561)
Redemption of preferred stock	(57,370)		—
Distributions to non-controlling interest	(266)		—
Net cash used in provided by financing activities	(79,745)		(310,940)
Net increase in cash and due from banks and restricted cash	46,984		27,480
Cash and due from banks and restricted cash at beginning of period	123,615		153,718
Cash and due from banks and restricted cash at end of period	$	170,599	$	181,198
Supplemental Disclosure of Cash Flow Information:
Cash and due from banks at beginning of period	$	123,615	$	153,718
Restricted cash at beginning of period	—		—

Cash and due from banks and restricted cash at beginning of period	$	123,615	$	153,718
Cash and due from banks at end of period	$	170,599	$	181,198
Restricted cash at end of period	—		—

Cash and due from banks and restricted cash at end of period	$	170,599	$	181,198
Cash paid during the period for:
Interest	$	133,527	$	145,401
Income taxes	12,957		19,704
Non-cash activities:
Accretion of unrealized loss on securities reclassified to held-to-maturity	291		200
Net loan charge-offs	2,854		1,801
Transfer of securities from held-to-maturity to available-for-sale	—		500
Transfer of loans receivable to other real estate owned	6,487		—
Transfer of loans receivable to loans held-for-sale	6,361		—

See accompanying Notes to Unaudited Consolidated Financial Statements.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements

Note 1. Basis of Presentation

The consolidated financial statements include the accounts of: OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, Country Property Holdings, Inc., OFB Acquisition LLC; Spring Garden Capital Group, LLC (and its subsidiaries), and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”). All significant intercompany accounts and transactions have been eliminated in consolidation.

The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected for the full year 2025 or any other period. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented. Actual results could differ from these estimates.

Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Segment Reporting

The Company’s operations are solely in the financial services industry and provide a range of regional community banking services to retail and commercial customers. The Company operates throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia.

Operating segments are defined as components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker (“CODM”). The CODM makes operating decisions and manages the activities of the business on a consolidated basis. Therefore, management concluded the Company has a single operating segment, and therefore one reportable segment.

Further, the CODM allocates resources and assesses performance based on an ongoing review of the Company’s consolidated financial results. Specifically, the CODM reviews net income, reported within the consolidated statements of income, along with information in consolidated statement of financial condition to decide whether to reinvest profits into the Company or other strategic investments. Refer to the Consolidated Statements of Financial Condition and Consolidated Statements of Income for net income and all significant expenses regularly provided to and reviewed by the CODM.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 2. Earnings per Share

The following reconciles shares outstanding for basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Weighted average shares outstanding	58,030	58,667	58,284	58,937
Less: Unallocated ESOP shares	(107)	(173)	(115)	(181)
Unallocated incentive award shares	(185)	(138)	(280)	(267)
Average basic shares outstanding	57,738	58,356	57,889	58,489
Add: Effect of dilutive securities:
Incentive awards	2	1	2	1

Average diluted shares outstanding	57,740	58,357	57,891	58,490

For the three and six months ended June 30, 2025, antidilutive stock options of 1,532,000 and 1,561,000, respectively, were excluded from the earnings per share calculation. For the three and six months ended June 30, 2024, antidilutive stock options of 1,680,000 for both periods were excluded from the earnings per share calculation.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 3. Securities

The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at June 30, 2025 and December 31, 2024 are as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Securities Credit Losses
At June 30, 2025
Debt securities available-for-sale:
U.S. government and agency obligations	$	59,254	$	4	$	(3,516)	$	55,742	$	—
Corporate debt securities	22,071		295		(278)		22,088		—
Asset-backed securities	140,653		136		(50)		140,739		—
Mortgage-backed securities (“MBS”):
Agency residential	419,213		902		(753)		419,362		—
Agency commercial	108,591		—		(10,961)		97,630		—
Total mortgage-backed securities	527,804		902		(11,714)		516,992		—
Total debt securities available-for-sale	$	749,782	$	1,337	$	(15,558)	$	735,561	$	—
Debt securities held-to-maturity:
State and municipal debt obligations	$	183,589	$	150	$	(12,958)	$	170,781	$	(27)
Corporate debt securities	55,677		252		(625)		55,304		(588)
Mortgage-backed securities:
Agency residential	633,637		1,065		(55,702)		579,000		—
Agency commercial	79,035		6		(5,487)		73,554		—
Non-agency commercial	17,840		—		(389)		17,451		(194)
Total mortgage-backed securities	730,512		1,071		(61,578)		670,005		(194)
Total debt securities held-to-maturity	$	969,778	$	1,473	$	(75,161)	$	896,090	$	(809)
Total debt securities	$	1,719,560	$	2,810	$	(90,719)	$	1,631,651	$	(809)
At December 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	62,396	$	11	$	(5,022)	$	57,385	$	—
Corporate debt securities	14,042		43		(762)		13,323		—
Asset-backed securities	197,116		235		(84)		197,267		—
Mortgage-backed securities:
Agency residential	465,108		1,256		(801)		465,563		—
Agency commercial	108,610		—		(14,648)		93,962		—
Total mortgage-backed securities	573,718		1,256		(15,449)		559,525		—
Total debt securities available-for-sale	$	847,272	$	1,545	$	(21,317)	$	827,500	$	—
Debt securities held-to-maturity:
State and municipal debt obligations	$	201,369	$	199	$	(13,665)	$	187,903	$	(31)
Corporate debt securities	65,350		775		(1,416)		64,709		(734)
Mortgage-backed securities:
Agency residential	680,052		44		(73,110)		606,986		—
Agency commercial	79,925		1		(5,878)		74,048		—
Non-agency commercial	20,146		—		(875)		19,271		(202)
Total mortgage-backed securities	780,123		45		(79,863)		700,305		(202)
Total debt securities held-to-maturity	$	1,046,842	$	1,019	$	(94,944)	$	952,917	$	(967)
Total debt securities	$	1,894,114	$	2,564	$	(116,261)	$	1,780,417	$	(967)

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Allowance for securities credit losses
Beginning balance	$	(898)	$	(1,058)	$	(967)	$	(1,133)

Benefit for credit losses	89		100		158		175



Total ending allowance balance	$	(809)	$	(958)	$	(809)	$	(958)

The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at June 30, 2025, aggregated by credit quality indicator, are as follows (in thousands):



	Investment Grade		Non-Investment Grade/Non-rated		Total
As of June 30, 2025


State and municipal debt obligations	$	183,589	$	—	$	183,589
Corporate debt securities	42,723		12,954		55,677







Non-agency commercial MBS	17,840		—		17,840

Total debt securities held-to-maturity	$	244,152	$	12,954	$	257,106

There were $56,000 of realized losses on sale of debt securities available-for-sale for both the three and six months ended June 30, 2025, as compared to $4,000 of realized gains and $106,000 of realized losses for the corresponding prior year periods. These realized gains/losses on debt securities are presented within Other and included within Total other income on the Consolidated Statements of Income.

The amortized cost and estimated fair value of debt securities at June 30, 2025 by contractual maturity are shown below (in thousands):


June 30, 2025	Amortized Cost		Estimated Fair Value
Less than one year	$	27,939	$	27,749
Due after one year through five years	182,411		175,331
Due after five years through ten years	166,697		164,505
Due after ten years	84,197		77,069
	$	461,244	$	444,654

Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2025, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $77.2 million, $49.6 million, and $140.7 million, respectively, and an estimated fair value of $76.8 million, $48.3 million, and $140.7 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at June 30, 2025 and December 31, 2024, segregated by the duration of the unrealized losses, are as follows (in thousands):


	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
At June 30, 2025
Debt securities available-for-sale:
U.S. government and agency obligations	$	2,429	$	(1)	$	51,067	$	(3,515)	$	53,496	$	(3,516)
Corporate debt securities	4,000		—		4,722		(278)		8,722		(278)
Asset-backed securities	42,333		(36)		5,986		(14)		48,319		(50)
MBS:
Agency residential	231,636		(753)		—		—		231,636		(753)
Agency commercial	493		(2)		97,137		(10,959)		97,630		(10,961)
Total MBS	232,129		(755)		97,137		(10,959)		329,266		(11,714)
Total debt securities available-for-sale	280,891		(792)		158,912		(14,766)		439,803		(15,558)
Debt securities held-to-maturity:


State and municipal debt obligations	7,985		(31)		151,858		(12,927)		159,843		(12,958)
Corporate debt securities	2,220		(30)		23,710		(595)		25,930		(625)

MBS:
Agency residential	34,872		(552)		457,112		(55,150)		491,984		(55,702)
Agency commercial	1,727		(6)		71,004		(5,481)		72,731		(5,487)
Non-agency commercial	—		—		17,451		(389)		17,451		(389)
Total MBS	36,599		(558)		545,567		(61,020)		582,166		(61,578)
Total debt securities held-to-maturity	46,804		(619)		721,135		(74,542)		767,939		(75,161)
Total debt securities	$	327,695	$	(1,411)	$	880,047	$	(89,308)	$	1,207,742	$	(90,719)
At December 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	3,221	$	—	$	49,538	$	(5,022)	$	52,759	$	(5,022)
Corporate debt securities	4,793		(55)		6,029		(707)		10,822		(762)
Asset-backed securities	31,588		(21)		59,148		(63)		90,736		(84)
MBS:
Agency residential	202,961		(801)		—		—		202,961		(801)
Agency commercial	—		—		93,962		(14,648)		93,962		(14,648)
Total MBS	202,961		(801)		93,962		(14,648)		296,923		(15,449)
Total debt securities available-for-sale	242,563		(877)		208,677		(20,440)		451,240		(21,317)
Debt securities held-to-maturity:


State and municipal debt obligations	7,098		(176)		169,434		(13,489)		176,532		(13,665)
Corporate debt securities	1,247		(219)		25,518		(1,197)		26,765		(1,416)

MBS:
Agency residential	114,557		(1,647)		479,847		(71,463)		594,404		(73,110)
Agency commercial	3,894		(20)		69,912		(5,858)		73,806		(5,878)
Non-agency commercial	—		—		19,271		(875)		19,271		(875)
Total MBS	118,451		(1,667)		569,030		(78,196)		687,481		(79,863)
Total debt securities held-to-maturity	126,796		(2,062)		763,982		(92,882)		890,778		(94,944)
Total debt securities	$	369,359	$	(2,939)	$	972,659	$	(113,322)	$	1,342,018	$	(116,261)

The Company concluded that no debt securities were impaired at June 30, 2025 based on consideration of several factors. The Company noted that each issuer made all contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Equity Investments

At June 30, 2025 and December 31, 2024, the Company held equity investments of $87.8 million and $84.1 million, respectively. The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in other financial institutions and funds.

The realized and unrealized gains or losses on equity securities for the three and six months ended June 30, 2025 and 2024 are shown in the table below (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net gain on equity investments	$	488	$	887	$	693	$	2,810
Less: Net gains recognized on equity investments sold	—		—		—		—
Unrealized gains recognized on equity investments still held	$	488	$	887	$	693	$	2,810

Note 4. Loans Receivable, Net

Loans receivable, net at June 30, 2025 and December 31, 2024 consisted of the following (in thousands):


	June 30,		December 31,
	2025		2024
Commercial:
Commercial real estate – investor	$	5,068,125	$	5,287,683
Commercial and industrial:
Commercial and industrial – real estate	914,406		902,219
Commercial and industrial – non-real estate	862,504		647,945
Total commercial and industrial	1,776,910		1,550,164
Total commercial	6,845,035		6,837,847
Consumer:
Residential real estate	3,119,232		3,049,763

Home equity loans and lines and other consumer (“other consumer”)	220,820		230,462

Total consumer	3,340,052		3,280,225
Total loans receivable	10,185,087		10,118,072
Deferred origination costs, net of fees	13,960		10,964
Allowance for loan credit losses	(79,266)		(73,607)
Total loans receivable, net	$	10,119,781	$	10,055,429

The Company categorizes all loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:

Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.

Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the collection or the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):


	2025		2024		2023		2022		2021		2020 and prior		Revolving lines of credit		Total
June 30, 2025

Commercial real estate - investor
Pass	$	93,258	$	69,823	$	138,809	$	1,169,708	$	1,256,126	$	1,607,826	$	624,692	$	4,960,242
Special Mention	167		—		—		2,958		—		12,053		2,261		17,439
Substandard	15		85		—		24,824		298		47,117		18,105		90,444
Total commercial real estate - investor	93,440		69,908		138,809		1,197,490		1,256,424		1,666,996		645,058		5,068,125
Commercial and industrial:
Commercial and industrial - real estate
Pass	55,126		77,917		60,393		137,081		82,638		446,477		44,194		903,826
Special Mention	—		—		—		—		—		777		40		817
Substandard	—		—		—		—		—		9,750		13		9,763
Total commercial and industrial - real estate	55,126		77,917		60,393		137,081		82,638		457,004		44,247		914,406
Commercial and industrial - non-real estate
Pass	127,790		166,644		31,272		32,784		9,847		117,635		356,800		842,772
Special Mention	—		188		—		—		—		193		—		381
Substandard	—		268		4,109		899		704		1,912		11,459		19,351
Total commercial and industrial - non-real estate	127,790		167,100		35,381		33,683		10,551		119,740		368,259		862,504
Total commercial and industrial	182,916		245,017		95,774		170,764		93,189		576,744		412,506		1,776,910


Residential real estate (1)
Pass	189,278		275,774		254,593		532,835		773,862		1,087,893		—		3,114,235
Special Mention	153		255		121		368		3		1,784		—		2,684
Substandard	—		209		62		94		1,017		931		—		2,313
Total residential real estate	189,431		276,238		254,776		533,297		774,882		1,090,608		—		3,119,232
Other consumer (1)
Pass	13,252		25,169		24,847		16,028		15,784		106,456		17,368		218,904
Special Mention	—		—		—		—		—		200		—		200
Substandard	—		—		191		33		38		1,454		—		1,716
Total other consumer	13,252		25,169		25,038		16,061		15,822		108,110		17,368		220,820

Total loans	$	479,039	$	616,332	$	514,397	$	1,917,612	$	2,140,317	$	3,442,458	$	1,074,932	$	10,185,087

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)


	2024		2023		2022		2021		2020		2019 and prior		Revolving lines of credit		Total
December 31, 2024
Commercial real estate - investor
Pass	$	75,225	$	140,863	$	1,142,790	$	1,290,047	$	510,906	$	1,264,536	$	750,607	$	5,174,974
Special Mention	15		—		21,285		—		—		18,225		4,477		44,002
Substandard	95		8		3,784		—		6,111		44,636		14,073		68,707
Total commercial real estate - investor	75,335		140,871		1,167,859		1,290,047		517,017		1,327,397		769,157		5,287,683
Commercial and industrial:
Commercial and industrial - real estate
Pass	82,104		62,799		140,578		90,720		40,746		442,685		31,776		891,408
Special Mention	—		—		—		—		—		2,918		—		2,918
Substandard	—		—		—		—		256		7,503		134		7,893
Total commercial and industrial - real estate	82,104		62,799		140,578		90,720		41,002		453,106		31,910		902,219
Commercial and industrial - non-real estate
Pass	81,867		30,084		35,469		14,276		3,873		180,695		278,217		624,481
Special Mention	—		4,735		—		—		235		16		96		5,082
Substandard	—		4,326		1,019		749		—		256		12,032		18,382
Total commercial and industrial - non-real estate	81,867		39,145		36,488		15,025		4,108		180,967		290,345		647,945
Total commercial and industrial	163,971		101,944		177,066		105,745		45,110		634,073		322,255		1,550,164
Residential real estate (1)
Pass	277,009		270,225		547,093		796,790		366,649		783,204		—		3,040,970
Special Mention	—		92		224		449		—		1,476		—		2,241
Substandard	215		415		1,583		445		—		3,894		—		6,552
Total residential real estate	277,224		270,732		548,900		797,684		366,649		788,574		—		3,049,763
Other consumer (1)
Pass	27,316		27,596		17,029		16,511		10,694		107,045		21,991		228,182
Special Mention	—		—		—		62		—		219		—		281
Substandard	—		97		18		343		—		1,541		—		1,999
Total other consumer	27,316		27,693		17,047		16,916		10,694		108,805		21,991		230,462
Total loans	$	543,846	$	541,240	$	1,910,872	$	2,210,392	$	939,470	$	2,858,849	$	1,113,403	$	10,118,072

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

An analysis of the allowance for credit losses on loans for the three and six months ended June 30, 2025 and 2024 was as follows (in thousands):


			Commercial and Industrial
	Commercial Real Estate – Investor		Commercial and Industrial - Real Estate		Commercial and Industrial - Non-Real Estate		Residential Real Estate		Other Consumer		Total
For the three months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period	$	33,947	$	4,102	$	12,837	$	26,810	$	1,102	$	78,798
Provision (benefit) for credit losses	690		(179)		1,951		108		116		2,686
Charge-offs	(1,791)		—		—		(370)		(254)		(2,415)
Recoveries	80		11		34		22		50		197
Balance at end of period	$	32,926	$	3,934	$	14,822	$	26,570	$	1,014	$	79,266
For the three months ended June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
Provision (benefit) for credit losses	2,462		(341)		272		642		83		3,118
Charge-offs	(1,600)		—		—		—		—		(1,600)
Recoveries	1		21		2		87		37		148
Balance at end of period	$	27,853	$	3,931	$	7,915	$	27,833	$	1,307	$	68,839
For the six months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period	$	30,780	$	3,817	$	10,471	$	27,587	$	952	$	73,607
Provision (benefit) for credit losses	3,837		103		4,315		51		207		8,513
Charge-offs	(1,846)		—		—		(1,092)		(275)		(3,213)
Recoveries	155		14		36		24		130		359
Balance at end of period	$	32,926	$	3,934	$	14,822	$	26,570	$	1,014	$	79,266
For the six months ended June 30, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
Provision (benefit) for credit losses	1,597		(448)		1,041		651		662		3,503
Charge-offs	(1,646)		—		—		—		(395)		(2,041)
Recoveries	3		25		7		153		52		240
Balance at end of period	$	27,853	$	3,931	$	7,915	$	27,833	$	1,307	$	68,839

The following tables summarize gross charge-offs by vintage (in thousands):


	2024		2023		2022		2021		2020 and prior		Total
For the three months ended June 30, 2025
Commercial real estate – investor	$	(180)	$	(1,564)	$	—	$	—	$	(47)	$	(1,791)


Residential real estate	—		—		(145)		(52)		(173)		(370)
Other consumer	—		—		—		—		(254)		(254)
Total charge-offs	$	(180)	$	(1,564)	$	(145)	$	(52)	$	(474)	$	(2,415)
For the six months ended June 30, 2025
Commercial real estate – investor	$	(180)	$	(1,564)	$	(30)	$	(24)	$	(48)	$	(1,846)


Residential real estate	(68)		(55)		(255)		(344)		(370)		(1,092)
Other consumer	—		—		—		—		(275)		(275)
Total charge-offs	$	(248)	$	(1,619)	$	(285)	$	(368)	$	(693)	$	(3,213)

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)


	2021		2019 and prior		Total
For the three months ended June 30, 2024
Commercial real estate – investor	$	—	$	(1,600)	$	(1,600)



Other consumer	—		—		—
Total charge-offs	$	—	$	(1,600)	$	(1,600)
For the six months ended June 30, 2024

Commercial real estate – investor	$	(46)	$	(1,600)	$	(1,646)


Other consumer	—		(395)		(395)
Total charge-offs	$	(46)	$	(1,995)	$	(2,041)

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At June 30, 2025 and December 31, 2024, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $15.4 million and $11.8 million, respectively, commercial and industrial - real estate of $4.4 million and $4.8 million, respectively, and commercial and industrial - non-real estate of $286,000 and $32,000, respectively. In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $4.0 million and $8.6 million at June 30, 2025 and December 31, 2024, respectively.

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30,		December 31,
	2025		2024
Commercial real estate – investor	$	20,457	$	17,000
Commercial and industrial:
Commercial and industrial - real estate	4,499		4,787
Commercial and industrial - non-real estate	311		32
Total commercial and industrial	4,810		4,819
Residential real estate (1)	5,318		10,644
Other consumer (1)	2,926		3,064
Total non-performing loans	$	33,511	$	35,527

(1) The six months ended June 30, 2025 included the sale of non-performing residential and consumer loans of $7.3 million.

At June 30, 2025 and December 31, 2024, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At June 30, 2025 and December 31, 2024, there were no loans greater than 90 days past due that were accruing interest.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the aging of the recorded investment in past due loans as of June 30, 2025 and December 31, 2024 by loan portfolio segment (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
June 30, 2025
Commercial real estate – investor	$	4,830	$	3,184	$	14,351	$	22,365	$	5,045,760	$	5,068,125
Commercial and industrial:
Commercial and industrial - real estate	—		1,625		287		1,912		912,494		914,406
Commercial and industrial - non-real estate	619		188		307		1,114		861,390		862,504
Total commercial and industrial	619		1,813		594		3,026		1,773,884		1,776,910
Residential real estate	848		2,441		2,313		5,602		3,113,630		3,119,232
Other consumer	906		99		1,716		2,721		218,099		220,820
Total loans	$	7,203	$	7,537	$	18,974	$	33,714	$	10,151,373	$	10,185,087
December 31, 2024
Commercial real estate – investor	$	4,624	$	8,880	$	10,877	$	24,381	$	5,263,302	$	5,287,683
Commercial and industrial:
Commercial and industrial - real estate	941		—		1,392		2,333		899,886		902,219
Commercial and industrial - non-real estate	3		—		16		19		647,926		647,945
Total commercial and industrial	944		—		1,408		2,352		1,547,812		1,550,164
Residential real estate	18,518		2,242		6,551		27,311		3,022,452		3,049,763
Other consumer	1,060		282		1,999		3,341		227,121		230,462
Total loans	$	25,146	$	11,404	$	20,835	$	57,385	$	10,060,687	$	10,118,072

Loan Modifications to Borrowers Experiencing Financial Difficulty

In accordance with Accounting Standards Update (“ASU”) 2022-02, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of June 30, 2025 and December 31, 2024, loans with modifications to borrowers experiencing financial difficulty totaled $40.1 million and $30.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of June 30, 2025 or December 31, 2024.

The following table presents loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024 (in thousands):


	Term Extension		Combination of Term Extension and Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended June 30, 2025
Commercial real estate – investor	$	—	$	4,449	$	4,449	0.09	%






	$	—	$	4,449	$	4,449	0.04	%
For the six months ended June 30, 2025
Commercial real estate – investor	$	5,067	$	4,449	$	9,516	0.19	%




	$	5,067	$	4,449	$	9,516	0.09	%

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)


	Term Extension		Interest Rate Reduction		Combination of Term Extension and Interest Rate Reduction		Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended June 30, 2024
Commercial real estate – investor	$	—	$	4,878	$	7,000	$	—	$	11,878	0.22	%




	$	—	$	4,878	$	7,000	$	—	$	11,878	0.12	%
For the six months ended June 30, 2024
Commercial real estate – investor	$	—	$	4,878	$	7,000	$	—	$	11,878	0.22	%
Commercial and industrial - real estate	—		—		—		2,994		2,994		0.35

Residential real estate	129		—		—		—		129		—
Other consumer	—		—		148		—		148		0.06
	$	129	$	4,878	$	7,148	$	2,994	$	15,149	0.15	%

The modifications during the periods presented had an insignificant financial effect on the Company.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended June 30, 2025 and 2024 (in thousands):



	Current		60 - 89 Days past due		90 Days or Greater past due		Total
June 30, 2025
Commercial real estate – investor	$	16,805	$	—	$	—	$	16,805




	$	16,805	$	—	$	—	$	16,805
June 30, 2024
Commercial real estate – investor	$	19,651	$	—	$	—	$	19,651
Commercial and industrial - real estate	2,945		—		—		2,945

Residential real estate	205		—		—		205
Other consumer	170		147		—		317
	$	22,971	$	147	$	—	$	23,118

Note 5. Deposits

The major types of deposits at June 30, 2025 and December 31, 2024 were as follows (in thousands):


Type of Account	June 30,		December 31,
	2025		2024
Non-interest-bearing	$	1,686,627	$	1,617,182
Interest-bearing checking	3,845,602		4,000,553
Money market deposit	1,377,999		1,301,197
Savings	1,022,918		1,066,438
Time deposits	2,299,296		2,080,972
Total deposits	$	10,232,442	$	10,066,342

Included in time deposits at June 30, 2025 and December 31, 2024 was $419.9 million and $457.2 million, respectively, of deposits of $250,000 or more. Time deposits also include brokered deposits of $522.8 million and $74.7 million at June 30, 2025 and December 31, 2024, respectively.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 6. Borrowed Funds

Borrowed funds at June 30, 2025 and December 31, 2024 were as follows (in thousands):


	June 30,		December 31,
	2025		2024
FHLB advances	$	938,687	$	1,072,611
Securities sold under agreements to repurchase with customers	61,490		60,567
Other borrowings	198,019		197,546
Total borrowed funds	$	1,198,196	$	1,330,724

At June 30, 2025, there were $801.7 million of term advances and $137.0 million of overnight borrowings from the FHLB, as compared to $1.07 billion and none at December 31, 2024, respectively.

Pledged assets

The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands):


	Loans		Debt securities		Total
June 30, 2025
FHLB and FRB	$	7,324,626	$	918,897	$	8,243,523
Repurchase agreements	—		64,720		64,720

Total pledged assets	$	7,324,626	$	983,617	$	8,308,243
December 31, 2024
FHLB and FRB	$	7,427,247	$	984,515	$	8,411,762
Repurchase agreements	—		85,529		85,529

Total pledged assets	$	7,427,247	$	1,070,044	$	8,497,291

The securities that collateralize the repurchase agreements are delivered to the lender, with whom each transaction is executed, to a third-party custodian, or held at the Company. The lender agrees to resell to the Company substantially the same securities at the maturity of the repurchase agreements.

Note 7. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means.

Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Debt Securities Available-for-Sale

Debt securities classified as available-for-sale are reported at fair value. Fair value of U.S. Treasuries are determined using quoted prices in active markets (Level 1). The majority of the other debt securities are determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or security industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities.

Equity Investments

Equity investments with readily determinable fair value are reported at fair value. Fair value for these investments is primarily determined using a quoted price in an active market or exchange (Level 1) or using inputs other than quoted prices that are based on market observable information (Level 2). Equity investments without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (measurement alternative). Certain equity investments without readily determinable fair values are measured at net asset value (“NAV”) per share as a practical expedient, which are excluded from the fair value hierarchy levels in the table below.

Interest Rate Derivatives

The Company’s interest rate swaps and cap contracts are reported at fair value utilizing discounted cash flow models provided by an independent, third-party and observable market data (Level 2). When entering into an interest rate swap or cap contract, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of the contract counterparty.

Other Real Estate Owned and Loans Individually Measured for Impairment

Other real estate owned and loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is generally based on independent appraisals (Level 3), which may be adjusted by management for qualitative factors, such as economic factors and estimated liquidation expenses.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table summarizes financial assets and financial liabilities measured at fair value as of June 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):


			Fair Value Measurements at Reporting Date Using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
June 30, 2025
Items measured on a recurring basis:
Debt securities available-for-sale	$	735,561	$	47,403	$	688,158	$	—
Equity investments	42,076		—		42,076		—
Interest rate derivative asset	61,103		—		61,103		—
Interest rate derivative liability	(61,213)		—		(61,213)		—

Items measured on a non-recurring basis:
Equity investments (1) (2)	45,732		—		—		40,163
Other real estate owned	7,680		—		—		7,680
Loans measured for impairment based on the fair value of the underlying collateral (3)	24,092		—		—		24,092
December 31, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	827,500	$	49,466	$	778,034	$	—
Equity investments	40,447		—		40,447		—
Interest rate derivative asset	91,352		—		91,352		—
Interest rate derivative liability	(91,483)		—		(91,483)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	43,657		—		—		39,676
Other real estate owned	1,811		—		—		1,811
Loans measured for impairment based on the fair value of the underlying collateral (3)	25,148		—		—		25,148

(1) As of June 30, 2025 and December 31, 2024, equity investments included $40.2 million and $39.7 million, respectively, of equity investments measured under the measurement alternative. There were no unrealized gains or losses for the six months ended June 30, 2025 or the year ended December 31, 2024.

(2) As of June 30, 2025 and December 31, 2024, equity investments included $5.6 million and $4.0 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent. The range of fair value adjustments may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments.

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three and six months ended June 30, 2025 and 2024.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Assets and Liabilities Disclosed at Fair Value

A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below.

Cash and Due from Banks

For cash and due from banks, the carrying amount approximates fair value.

Debt Securities Held-to-Maturity

Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt securities utilizing Level 2 inputs. Most of the Company’s debt securities are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities.

Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and decides as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities.

Restricted Equity Investments

The fair value of these investments, which are primarily Federal Home Loan Bank of New York and Federal Reserve Bank stock, is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment as stipulated by the respective entities.

Loans Receivable and Loans Held-for-Sale

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential real estate, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms.

Fair value of performing and non-performing loans, which is based on an exit price notion, was estimated by discounting the future cash flows, net of estimated prepayments, at market discount rates that reflect the credit and interest rate risk inherent in the loan.

Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is generally determined based on bid quotations from secondary markets.

Deposits Other than Time Deposits

The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts is, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported.

Time Deposits

The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

FHLB Advances and Other Borrowings

Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities.

Securities Sold Under Agreements to Repurchase with Customers

Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The book value and estimated fair value of the Company’s significant financial instruments not recorded at fair value as of June 30, 2025 and December 31, 2024 are presented in the following tables (in thousands):


			Fair Value Measurements at Reporting Date Using:
	Book Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
June 30, 2025
Financial Assets:
Cash and due from banks	$	170,599	$	170,599	$	—	$	—
Debt securities held-to-maturity	968,969		—		896,090		—
Restricted equity investments	106,538		—		—		106,538
Loans receivable, net and loans held-for-sale	10,135,525		—		—		9,676,888
Financial Liabilities:
Deposits other than time deposits (1)	7,933,146		—		7,933,146		—
Time deposits	2,299,296		—		2,290,436		—
FHLB advances and other borrowings	1,136,706		—		1,151,601		—
Securities sold under agreements to repurchase with customers	61,490		61,490		—		—
December 31, 2024
Financial Assets:
Cash and due from banks	$	123,615	$	123,615	$	—	$	—
Debt securities held-to-maturity	1,045,875		—		952,917		—
Restricted equity investments	108,634		—		—		108,634
Loans receivable, net and loans held-for-sale	10,076,640		—		—		9,551,156
Financial Liabilities:
Deposits other than time deposits (1)	7,985,370		—		7,985,370		—
Time deposits	2,080,972		—		2,074,698		—
FHLB advances and other borrowings	1,270,157		—		1,264,260		—
Securities sold under agreements to repurchase with customers	60,567		60,567		—		—

(1) The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, bank owned life insurance, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 8. Derivatives and Hedging Activities

The Company enters into derivative financial instruments which involve, to varying degrees, interest rate and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes derivative financial instruments to accommodate the business needs of its customers as well as to economically hedge the exposure that this creates for the Company. Additionally, the Company enters into certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The Company does not use derivative financial instruments for trading purposes.

Customer Derivatives – Interest Rate Swaps and Cap Contracts

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The Company also enters into interest rate cap contracts that enable commercial loan customers to lock in a cap on a variable-rate commercial loan agreement. This feature prevents the loan from repricing to a level that exceeds the cap contract’s specified interest rate, which serves to hedge the risk from rising interest rates. The Company then enters into an offsetting interest rate cap contract with a third party in order to economically hedge its exposure through the customer agreement.

These interest rate swaps and cap contracts with both the customers and third parties are not designated as hedges under ASC Topic 815, Derivatives and Hedging, therefore changes in fair value are reported in earnings. As the interest rate swaps and cap contracts are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC Topic 820, Fair Value Measurements. The Company recognized losses of $9,000 and $25,000 in commercial loan swap income resulting from the fair value adjustments for the three and six months ended June 30, 2025, respectively, as compared to losses of $2,000 and gains of $11,000 for the corresponding prior year periods.

Derivatives Designated as Hedging Instruments

During 2022, the Company entered into a three-year interest rate swap intended to add stability to its net interest income and to manage its exposure to future interest rate movements associated with a pool of floating-rate commercial loans. The swap requires the Company to pay variable-rate amounts indexed to one-month term Secured Overnight Financing Rate (“SOFR”) to the counterparty in exchange for the receipt of fixed-rate amounts at 4.0% from the counterparty. The swap was designated and qualified as a cash flow hedge under ASC Topic 815, Derivatives and Hedging. The changes in the fair value of cash flow hedges are initially reported in other comprehensive income. Amounts are subsequently reclassified from accumulated other comprehensive income to earnings when the hedged transactions occur, specifically within the same line item as the hedged item (interest income). Therefore, a portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are made or received on the Company’s interest rate swaps.

The table below presents the effect on the Company’s accumulated other comprehensive income/loss (“AOCI” or “AOCL”) attributable to the cash flow hedge derivative, net of tax, and the related gains/losses reclassified from AOCI into income (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
AOCL balance at beginning of period, net of tax	$	(23)	$	(726)	$	(87)	$	(36)
Unrealized losses recognized in OCI	(93)		(306)		(93)		(1,255)
Losses reclassified from AOCI into interest income	64		256		128		515
AOCL balance at end of period, net of tax	$	(52)	$	(776)	$	(52)	$	(776)

For the year ending 2025, the Company estimates that an additional $68,000 will be reclassified as a reduction to interest income.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands):


	Notional		Fair Value
			Other assets		Other liabilities
As of June 30, 2025
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,450,992	$	61,103	$	61,145
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		68
Total Derivatives	$	1,550,992	$	61,103	$	61,213
As of December 31, 2024
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,468,022	$	91,352	$	91,368
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		115
Total Derivatives	$	1,568,022	$	91,352	$	91,483

Credit Risk-Related Contingent Features

The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by being a party to International Swaps and Derivatives Association agreements with third-party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. There was no collateral posted by the Company with third parties at both June 30, 2025 and December 31, 2024. The amount of collateral received from third parties was $54.4 million and $93.3 million at June 30, 2025 and December 31, 2024, respectively. The amount of collateral posted with third parties and received from third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $61.2 million and $91.5 million at June 30, 2025 and December 31, 2024, respectively.

The interest rate derivatives which the Company executes with the commercial borrowers are collateralized by the borrowers’ commercial real estate financed by the Company.

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 9. Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which has a lease term through 2029.

The following table represents the classification of the Company’s Right of Use (“ROU”) assets and lease liabilities on the Consolidated Statements of Financial Condition (in thousands):


		June 30,		December 31,
		2025		2024
Lease ROU Assets	Classification
Operating lease ROU assets	Other assets	$	14,972	$	15,452
Finance lease ROU asset	Premises and equipment, net	955		1,071
Total lease ROU assets		$	15,927	$	16,523

Lease Liabilities
Operating lease liabilities (1)	Other liabilities	$	16,466	$	17,114
Finance lease liability	Other borrowings	1,284		1,421
Total lease liabilities		$	17,750	$	18,535

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $1.1 million and $4.4 million at June 30, 2025 and December 31, 2024, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.


	June 30,		December 31,
	2025		2024
Weighted-Average Remaining Lease Term
Operating leases	5.74 years		5.84 years
Finance lease	4.10 years		4.59 years
Weighted-Average Discount Rate
Operating leases	3.29	%	3.08	%
Finance lease	5.63		5.63

Table of Contents

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table represents lease expenses and other lease information (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Lease Expense
Operating lease expense	$	1,227	$	1,146	$	2,430	$	2,305
Finance lease expense:
Amortization of ROU assets	58		58		116		116
Interest on lease liabilities (1)	19		22		38		45
Total	$	1,304	$	1,226	$	2,584	$	2,466

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,316	$	1,021	$	2,605	$	2,122
Operating cash flows from finance leases	19		22		38		45
Financing cash flows from finance leases	69		65		137		130

(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):


	Finance Lease		Operating Leases
For the Year Ending December 31,
2025	$	175	$	2,559
2026	350		4,528
2027	350		3,058
2028	350		1,891
2029	209		1,787
Thereafter	—		4,449
Total	1,434		18,272
Less: Imputed interest	(150)		(1,806)
Total lease liabilities	$	1,284	$	16,466

Note 10. Variable Interest Entity

The Company accounts for Trident as a variable interest entity (“VIE”) under ASC 810, Consolidation, for which the Company is considered the primary beneficiary (i.e. the party that has a controlling financial interest). In accordance with ASC 810, Consolidation, the Company has consolidated Trident’s assets and liabilities.

The summarized financial information for the Company’s consolidated VIE at June 30, 2025 and December 31, 2024 consisted of the following (in thousands):


	June 30, 2025		December 31, 2024
Cash and cash equivalents	$	33,015	$	21,642
Other assets	356		457
Total assets	33,371		22,099
Other liabilities	31,286		19,333
Net assets	$	2,085	$	2,766

Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company and the Bank are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings in the aggregate are believed by management to be immaterial to the Company’s financial condition or results of operations.

Item 1A. Risk Factors

For a summary of risk factors relevant to the Company, see Part I, Item 1A, “Risk Factors,” in the 2024 Form 10-K. There have been no material changes to risk factors relevant to the Company’s operations since December 31, 2024. Additional risks not presently known to the Company, or that the Company currently deems immaterial, may also adversely affect the business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Purchases of Equity Securities

On June 25, 2021, the Company announced the authorization by the Board of Directors to repurchase up to 5% of the Company’s outstanding common stock, or 3.0 million shares. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares. The stock repurchase plans have no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the plan at any time. The Company repurchased 1,002,579 shares of its common stock during the three month period ended June 30, 2025. At June 30, 2025, there were 226,284 shares available for repurchase under the Company’s stock repurchase program.


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number of Shares that May Yet Be Purchased Under the Plan or Program
April 1, 2025 through April 30, 2025	—	$	—	—	1,228,863
May 1, 2025 through May 31, 2025	535,263	17.33		535,263	693,600
June 1, 2025 through June 30, 2025	467,316	16.96		467,316	226,284

For the three months ended June 30, 2025, 971 shares were repurchased outside of the Company’s stock repurchase program at an average share price of $17.00. The Company repurchased these shares from employees that elected to exercise vested stock options. These shares were repurchased pursuant to the terms of the applicable plan and not under the Company’s share repurchase program.

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

During the three months ended June 30, 2025, no directors or executive officers of the Company adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or any “Rule 10b5-1 trading arrangement.”

Table of Contents

Item 6. Exhibits

Exhibit No:

Exhibit Description

Reference

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Filed with this document

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Filed with this document

32.0

Certification pursuant to 18 U.S.C. Section 1350 as added by Section 906 of the Sarbanes-Oxley Act of 2002

Filed with this document

101.0

The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements

104.0

Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

Table of Contents

SIGNATURES

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