Skip to main content
Equibles

8-K

Oceanfirst Financial Corp (OCFC)

8-K 2022-01-27 For: 2022-01-27
View Original
Added on April 08, 2026
View as plain text

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 27, 2022

OCEANFIRST FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

Delaware 001-11713 22-3412577
(State or other jurisdiction of<br>incorporation or organization) (Commission<br>File No.) (IRS Employer<br>Identification No.)

110 West Front Street, Red Bank New Jersey 07701

(Address of principal executive offices, including zip code)

(732)240-4500

(Registrant’s telephone number, including area code)

Not Applicable

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

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

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
--- ---
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
--- ---
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--- ---

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

Title of each class Trading symbol Name of each exchange in which registered
Common stock, $0.01 par value per share OCFC NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock) OCFCP NASDAQ

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

Emerging growth company ☐

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

ITEM 2.02RESULTS OF OPERATION AND FINANCIAL CONDITION

On January 27, 2022, OceanFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2021. That press release is attached to this Report as Exhibit 99.1.

ITEM 7.01REGULATION FD DISCLOSURE

The Company is scheduled to make presentations to current and prospective investors after January 27, 2022. Attached as Exhibit 99.2 of this Form 8-K is a copy of the presentation which OceanFirst Financial Corp. will make available at these presentations and will post on its website at www.oceanfirst.com. This report is being furnished to the SEC and shall not be deemed "filed" for any purpose.

ITEM 8.01OTHER EVENTS

In the press release described in Item 2.02, the Company announced that the Board of Directors declared a regular quarterly cash dividend on the Company’s outstanding common stock. The cash dividend will be in the amount of $0.17 per share and will be payable on February 18, 2022 to the stockholders of record at the close of business on February 7, 2022.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(d) EXHIBITS
99.1 Press Release dated January 27, 2022
99.2 Text of written presentation which OceanFirst Financial Corp. intends to provide to current and prospective investors after January 27, 2022.

SIGNATURES

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

OCEANFIRST FINANCIAL CORP.
Dated January 27, 2022 /s/ Michael J. Fitzpatrick
Michael J. Fitzpatrick
Executive Vice President and Chief Financial Officer

Document

Press Release

Company Contact:

Exhibit 99.1

Michael J. Fitzpatrick

Chief Financial Officer

OceanFirst Financial Corp.

Tel: (732) 240-4500, ext. 7506

Email: Mfitzpatrick@oceanfirst.com

FOR IMMEDIATE RELEASE

OCEANFIRST FINANCIAL CORP.

ANNOUNCES QUARTERLY AND ANNUAL

EARNINGS AND FINANCIAL RESULTS

RED BANK, NEW JERSEY, JANUARY 27, 2022…OceanFirst Financial Corp. (NASDAQ:“OCFC”), (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $21.7 million, or $0.37 per diluted share, for the quarter ended December 31, 2021, as compared to $32.1 million, or $0.54 per diluted share, for the corresponding prior year period. For the year ended December 31, 2021, the Company reported net income available to common stockholders of $106.1 million, or $1.78 per diluted share, as compared to $61.2 million, or $1.02 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information regarding the metrics):

For the Three Months Ended, For the Years Ended,
Performance Ratios (Annualized): December 31, September 30, December 31, December 31, December 31,
2021 2021 2020 2021 2020
Return on average assets 0.72 % 0.78 % 1.09 % 0.91 % 0.55 %
Return on average stockholders’ equity 5.65 6.05 8.65 7.02 4.20
Return on average tangible stockholders’ equity (a) 8.59 9.20 13.43 10.73 6.59
Efficiency ratio 72.04 67.43 59.86 63.50 63.70
Net interest margin 2.99 2.93 2.97 2.93 3.16

(a) Return on average tangible stockholders’ equity, a non-GAAP (“generally accepted accounting principles”) measure, excludes the impact of intangible assets and goodwill from both assets and stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.

Core earnings1 for the quarter and year ended December 31, 2021 amounted to $28.5 million and $111.2 million, respectively, or $0.48 and $1.86 per diluted share, respectively. Non-core operations had an adverse impact, net of tax, of $6.8 million and $5.1 million for the quarter and year ended December 31, 2021, respectively.

For the Three Months Ended, For the Years Ended,
December 31, September 30, December 31, December 31, December 31,
Core Ratios1 (Annualized): 2021 2021 2020 2021 2020
Return on average assets 0.95 % 0.90 % 0.78 % 0.95 % 0.64 %
Return on average tangible stockholders’ equity 11.30 10.62 9.71 11.25 7.77
Efficiency ratio 62.57 62.22 59.69 60.84 57.81

Key developments for the recent quarter are described below:

•Loan Growth: Total loan growth for the quarter was $441.0 million. Excluding the impact of Paycheck Protection Program (“PPP”) loans of $29.6 million, total loan growth was $470.6 million for the quarter, reflecting record loan originations of $989.0 million and the purchase of a residential loan pool of $82.2 million. The committed loan pipeline remains strong at a record level of $671.0 million.

•Strengthening Margin: Net interest margin increased to 2.99%, from 2.93% in the prior linked quarter, largely driven by the reduction in excess liquidity to fund loan growth. Cost of deposits decreased two basis points to 0.20%, from 0.22% for the prior linked quarter, reflecting improved deposit quality.

1 Core earnings, a non-GAAP measure, and ratios derived from core earnings, for the periods presented, excludes merger related expenses, branch consolidation expenses, net loss (gain) on equity investments, Federal Home Loan Bank (“FHLB”) advance prepayment fees, gain on sale of Paycheck Protection Program (“PPP”) loans, the opening credit loss expense under the Current Expected Credit Loss (“CECL”) model related to the acquisitions of Two River Bancorp (“Two River”) and Country Bank Holding Company, Inc. (“Country Bank”) and the income tax effect of these items, (collectively referred to as “non-core” operations). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding our non-GAAP measures and impact per period.

•Branch Consolidations: The Company consolidated nine branches during the fourth quarter for a total of 67 branches consolidated. The branch consolidation expense was $7.3 million for the quarter ended December 31, 2021. Average deposits per branch totaled $207.1 million as of December 31, 2021. Additionally, the Company expects to consolidate another 10 branches in the first quarter of 2022.

•Subordinated Debt: The Company has provided notice to its trustee that it will redeem $35.0 million of subordinated debt due September 30, 2026 as of March 30, 2022. The debt currently carries an interest rate of 4.14% based on a floating rate of three months LIBOR plus 392 basis points.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “During the fourth quarter, OceanFirst delivered exceptional loan growth with $989.0 million of loan originations while maintaining a robust committed pipeline of $671.0 million. This represents strong results from all of our commercial banking teams including our newest groups in Boston and Baltimore, which will add important momentum into 2022.” Mr. Maher added, “All of us at OceanFirst are proud to acknowledge our continued commitment to providing shareholder value as our Board of Directors has declared the Company’s 100th consecutive quarterly cash dividend for common stockholders.”

The Company’s Board of Directors declared its 100th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.17 per share will be paid on February 18, 2022 to common stockholders of record on February 7, 2022. The Board previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 15, 2022 to preferred stockholders of record on January 31, 2022.

Results of Operations

Net income for the quarter ended December 31, 2021 was adversely impacted by non-core operations of $6.8 million, net of tax, while net income for the quarter ended December 31, 2020 was favorably impacted by non-core operations of $8.9 million, net of tax. Net income for the years ended December 31, 2021 and 2020 was adversely impacted by non-core operations of $5.1 million, net of tax, and $11.0 million, net of tax, respectively. Core earnings for the quarter ended December 31, 2021 were $28.5 million, or $0.48 per diluted share, representing an increase from core earnings of $23.2 million, or $0.39 per diluted share, for the corresponding prior year period. Core earnings for the year ended December 31, 2021 were $111.2 million, or $1.86 per diluted share, an increase from $72.2 million, or $1.20 per diluted share, for the prior year. Core earnings for the quarter ended December 31, 2021 increased from $26.7 million, or $0.45 per diluted share, for the prior linked quarter, which was adversely impacted by non-core operations of $3.6 million, net of tax.

Net Interest Income and Margin

Net interest income for the quarter ended December 31, 2021 increased to $80.6 million, as compared to $77.9 million for the corresponding prior year period. Net interest income for the year ended December 31, 2021 decreased to $305.3 million, as compared to $313.0 million for the prior year, as a result of the lower interest rate environment. Average interest-earning assets increased by $280.8 million for the quarter ended December 31, 2021, as compared to the corresponding prior year period, due to securities and loan growth, which was partly funded by the redeployment of excess cash. Average interest-earning assets increased by $512.9 million for the year ended December 31, 2021, as compared to the prior year, primarily concentrated in excess balance sheet liquidity and increased securities. Average loans receivable, net of allowance for loan credit losses, increased by $305.0 million and decreased by $201.0 million for the quarter and year ended December 31, 2021, respectively, as compared to the same prior year periods. Loans receivable, net was $8.58 billion at

December 31, 2021, as compared to an average balance of $8.30 billion for the quarter ended December 31, 2021.

Net interest margin for the quarter and year ended December 31, 2021 increased to 2.99% and decreased to 2.93%, respectively, from 2.97% and 3.16% for the same prior year periods, respectively. The net interest margin expansion for the quarter ended December 31, 2021 was primarily attributable to the decrease in excess balance sheet liquidity used to fund securities and loan growth. The net interest margin compression for the year ended December 31, 2021 was primarily due to the excess balance sheet liquidity and the lower interest rate environment. For the quarter and year ended December 31, 2021, the cost of average interest-bearing liabilities decreased to 0.40% and 0.49%, respectively, from 0.74% and 0.88% in the corresponding prior year periods, respectively, as a result of the lower interest rate environment. For the quarter and year ended December 31, 2021, the total cost of deposits (including non-interest bearing deposits) was 0.20% and 0.26%, respectively, as compared to 0.45% and 0.55% in the same prior year periods, respectively.

Net interest income for the quarter ended December 31, 2021 increased by $3.5 million, as compared to the prior linked quarter, and net interest margin increased to 2.99%, compared to 2.93% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees of 0.18% for each of the quarters ended December 31, 2021 and September 30, 2021, net interest margin increased to 2.81%, from 2.75%. The yield on average interest-earning assets increased to 3.28%, from 3.24% in the prior linked quarter. The total cost of average interest-bearing liabilities was 0.40% for the quarter ended December 31, 2021, as compared to 0.44% in the prior linked quarter, partly due to maturities of higher-yielding time deposits.

Benefit/Provision for Credit Loss

For the quarter and year ended December 31, 2021, the credit loss benefit was $1.6 million and $11.8 million, respectively, as compared to credit loss expense of $4.1 million and $59.4 million, respectively, for the corresponding prior year periods and a credit loss benefit of $3.2 million in the

prior linked quarter. The credit loss benefit for the quarter and year ended December 31, 2021 and the quarter ended September 30, 2021 was influenced by positive trends in the Bank’s asset quality combined with stabilizing trends in economic forecasts, including strong employment levels and modest GDP growth, partly offset by the continuing economic uncertainty related to COVID-19 variants.

Net loan recoveries were $19,000 and $461,000 for the quarter and year ended December 31, 2021, respectively, as compared to net loan charge-offs of $2.9 million and $18.9 million, respectively, for the corresponding prior year periods and net loan recoveries of $386,000 in the prior linked quarter. The quarter ended December 31, 2020 included $2.3 million of charge-offs related to the sale of under-performing residential and consumer loans. The year ended December 31, 2020 included $14.6 million of charge-offs related to the sale of higher risk commercial loans and $3.3 million of charge-offs related to the sale of under-performing residential and consumer loans. Non-performing loans totaled $18.9 million at December 31, 2021, as compared to $23.3 million at September 30, 2021 and $36.4 million at December 31, 2020.

Non-interest Income

For the quarter and year ended December 31, 2021, other income decreased to $9.4 million and $51.9 million, respectively, as compared to $40.6 million and $73.9 million, respectively, for the corresponding prior year periods. Other income for the quarter and year ended December 31, 2021 included net losses of $1.3 million and net gains of $7.1 million, respectively, related to non-core operations. Other income for the quarter and year ended December 31, 2020 included $29.6 million and $26.0 million, respectively, of net gains related to non-core operations. The net gain on equity investments was primarily a result of several programs implemented by the Company in 2020 to invest excess liquidity in high quality equity securities with attractive dividend yields which were subsequently sold in 2020 and 2021.

Excluding non-core operations, the decrease in other income of $370,000 for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to decreases in net gain on sale of loans of $1.2 million and fees and service charges of $636,000, partly offset by an increase in commercial loan swap income of $1.2 million.

Excluding non-core operations, the decrease in other income of $3.1 million for the year ended December 31, 2021, as compared to the prior year, was primarily due to decreases in commercial loan swap income of $4.0 million and fees and service charges of $2.0 million, partly offset by increases in bankcard services of $1.9 million, due to lower card activity in the prior year period as a result of the pandemic, and income from bank owned life insurance of $408,000.

Excluding non-core operations, other income for the quarter ended December 31, 2021 increased $313,000, as compared to the prior linked quarter, primarily due to an increase in income from bank owned life insurance of $421,000.

Non-interest Expense

Operating expenses decreased to $64.8 million and $226.9 million for the quarter and year ended December 31, 2021, respectively, as compared to $70.9 million and $246.4 million, respectively, for the same prior year periods. Operating expenses for the quarter and year ended December 31, 2021 included $7.7 million and $13.8 million, respectively, of net expenses related to non-core operations. Operating expenses for the quarter and year ended December 31, 2020 included $17.9 million and $37.8 million, respectively, of net expenses related to non-core operations.

Excluding non-core operations, the $4.0 million increase in operating expenses for the quarter ended December 31, 2021, as compared to the corresponding prior year period, was primarily due to increases in compensation and benefits expense of $3.7 million, and data processing expense of $3.2 million, partly offset by decreases in professional fees of $1.2 million, other operating expense of $573,000, and equipment expense of $503,000.

Excluding non-core operations, the $4.4 million increase in operating expenses for the year ended December 31, 2021, as compared to the prior year, was primarily due to increases in compensation and benefits expense of $5.9 million, primarily related to higher benefit costs, data processing expense of $4.1 million, and federal deposit insurance and regulatory assessments of $1.3 million, partly offset by decreases in equipment expense of $2.3 million, professional fees of $1.2 million, other operating expense of $1.0 million, marketing expense of $948,000, and amortization of core deposit intangible of $733,000.

Excluding non-core operations, operating expenses for the quarter ended December 31, 2021 increased $2.7 million, as compared to the prior linked quarter. The change was primarily due to an increase in data processing expense of $2.4 million.

Income Tax Expense

The provision for income taxes was $4.1 million and $32.2 million for the quarter and year ended December 31, 2021, respectively, as compared to $10.4 million and $17.7 million, respectively, for the same prior year periods and $7.4 million for the prior linked quarter. The effective tax rate was 15.3% and 22.6% for the quarter and year ended December 31, 2021, respectively, as compared to 24.0% and 21.9%, respectively, for the same prior year periods and 23.3% for the prior linked quarter. The lower effective tax rate for the quarter ended December 31, 2021, as compared to the corresponding prior year periods and prior linked quarter, was primarily due to allocation of taxable income to jurisdictions other than New Jersey, which is tied to our commercial banking strategy, and other tax optimization efforts.

Financial Condition

Total assets increased by $291.3 million to $11.74 billion at December 31, 2021, from $11.45 billion at December 31, 2020. Cash and due from banks decreased by $1.07 billion to $204.9 million at December 31, 2021, from $1.27 billion at December 31, 2020, as excess liquidity was primarily used to fund loan growth and purchase securities. Total debt securities increased by $586.9 million at

December 31, 2021, as compared to December 31, 2020. Total loans, excluding PPP loans of $22.9 million and $95.4 million at December 31, 2021 and December 31, 2020, respectively, increased by $939.2 million, to $8.60 billion at December 31, 2021, from $7.66 billion at December 31, 2020, primarily due to loan originations and purchases of residential real estate loan pools.

Deposits increased by $305.2 million, to $9.73 billion at December 31, 2021, from $9.43 billion at December 31, 2020. Total deposits, excluding time deposits of $775.0 million at December 31, 2021 and $1.37 billion at December 31, 2020, increased by $903.0 million to $8.96 billion at December 31, 2021, from $8.05 billion at December 31, 2020 as a result of the Company’s efforts to improve the quality of deposits. The loans-to-deposits ratio at December 31, 2021 was 88.6%, as compared to 82.3% at December 31, 2020.

Stockholders’ equity increased to $1.52 billion at December 31, 2021, as compared to $1.48 billion at December 31, 2020. On June 25, 2021, the Company announced the authorization by the Board of Directors of the 2021 Stock Repurchase Program to repurchase up to an additional 3.0 million shares, which was approximately 5% of the Company’s outstanding common stock. For the year ended December 31, 2021, the Company repurchased 1,711,484 shares under its stock repurchase programs, at a weighted average cost of $21.07, and there were 3,307,661 shares available for repurchase at December 31, 2021 under the existing stock repurchase programs. Stockholders’ equity per common share increased to $25.63 at December 31, 2021, as compared to $24.57 at December 31, 2020. Tangible common equity per common share increased by 6.3%, to $15.93 at December 31, 2021, as compared to $14.98 at December 31, 2020.

Asset Quality

The Company’s non-performing loans decreased to $18.9 million at December 31, 2021, as compared to $36.4 million at December 31, 2020. Non-performing loans at December 31, 2021 do not include $41.8 million of purchased with credit deterioration (“PCD”) loans from prior bank acquisitions. The allowance for loan credit losses as a percentage of total non-performing loans was 257.8% at December 31, 2021, as compared to 166.8% at December 31, 2020. The Company’s level of 30 to 89 days delinquent loans, excluding non-performing and PCD loans, improved to $13.5 million at December 31, 2021, from $34.7 million at December 31, 2020. The Company’s proactive management of higher risk loans in 2020 has proven valuable, as credit trends have steadily improved throughout 2021.

The Company’s allowance for loan credit losses was 0.57% of total loans at December 31, 2021, as compared to 0.78% at December 31, 2020. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $67.8 million, or 0.79% of total loans, at December 31, 2021.

Explanation of Non-GAAP Financial Measures

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

Annual Meeting

The Company also announced today that its Annual Meeting of Stockholders will be held on Wednesday, May 25, 2022 at 9:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is April 6, 2022. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, January 28, 2022 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-844-200-6205, toll free, using the access code 733688. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 549028, from one hour after the end of the call until April 28, 2022. The conference call will also be available (listen-only) via the Internet by accessing the Company’s Web address: www.oceanfirst.com - Investor Relations. The webcast will be available for 90 days.

* * *

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $11.7 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, Washington D.C and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: the impact of the COVID-19 or any other pandemic on our operations and financial results and those of our customers, changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, 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, competition, demand for financial services in the Company’s market area, accounting principles and guidelines 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, 2020, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)

December 31, 2021 September 30, 2021 December 31, 2020
(Unaudited) (Unaudited)
Assets
Cash and due from banks $ 204,949 $ 981,126 $ 1,272,134
Debt securities available-for-sale, at estimated fair value 568,255 314,620 183,302
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,467 at December 31, 2021, $1,503 at September 30, 2021, and $1,715 at December 31, 2020 (estimated fair value of $1,152,744 at December 31, 2021, $1,143,381 at September 30, 2021, and $968,466 at December 31, 2020) 1,139,193 1,125,382 937,253
Equity investments 101,155 101,314 107,079
Restricted equity investments, at cost 53,195 53,017 51,705
Loans receivable, net of allowance for loan credit losses of $48,850 at December 31, 2021, $50,153 at September 30, 2021, and $60,735 at December 31, 2020 8,583,352 8,139,961 7,704,857
Loans held-for-sale — 13,428 45,524
Interest and dividends receivable 32,606 32,512 35,269
Other real estate owned 106 106 106
Premises and equipment, net 125,828 123,669 107,094
Bank owned life insurance 259,207 260,072 265,253
Assets held for sale 6,229 4,613 5,782
Goodwill 500,319 500,319 500,319
Core deposit intangible 18,215 19,558 23,668
Other assets 147,007 159,991 208,968
Total assets $ 11,739,616 $ 11,829,688 $ 11,448,313
Liabilities and Stockholders’ Equity
Deposits $ 9,732,816 $ 9,774,097 $ 9,427,616
Securities sold under agreements to repurchase with retail customers 118,769 143,292 128,454
Other borrowings 229,141 228,887 235,471
Advances by borrowers for taxes and insurance 20,305 22,214 17,296
Other liabilities 122,032 147,949 155,346
Total liabilities 10,223,063 10,316,439 9,964,183
Total stockholders’ equity 1,516,553 1,513,249 1,484,130
Total liabilities and stockholders’ equity $ 11,739,616 $ 11,829,688 $ 11,448,313

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

For the Three Months Ended, For the Year Ended
December 31, September 30, December 31, December 31,
2021 2021 2020 2021 2020
--------------------- (Unaudited) --------------------- (Unaudited)
Interest income:
Loans $ 81,392 $ 78,889 $ 84,997 $ 315,237 $ 349,221
Debt securities 5,654 5,040 5,539 22,033 24,116
Equity investments and other 1,411 1,491 2,026 4,822 6,271
Total interest income 88,457 85,420 92,562 342,092 379,608
Interest expense:
Deposits 5,010 5,379 10,679 25,210 48,290
Borrowed funds 2,861 2,909 4,032 11,544 18,367
Total interest expense 7,871 8,288 14,711 36,754 66,657
Net interest income 80,586 77,132 77,851 305,338 312,951
Credit loss (benefit) expense (1,573) (3,179) 4,072 (11,832) 59,404
Net interest income after credit loss (benefit) expense 82,159 80,311 73,779 317,170 253,547
Other income:
Bankcard services revenue 3,308 3,409 3,098 13,360 11,417
Trust and asset management revenue 562 584 492 2,336 2,052
Fees and service charges 3,314 2,973 3,950 13,833 15,808
Net gain (loss) on sales of loans 6 (15) 6,348 3,186 8,278
Net (loss) gain on equity investments (1,252) (466) 24,487 7,145 21,214
Net (loss) gain from other real estate operations (3) (3) 23 (15) 35
Income from bank owned life insurance 2,061 1,640 1,798 6,832 6,424
Commercial loan swap income 1,323 1,588 116 4,095 8,080
Other 91 173 308 1,159 618
Total other income 9,410 9,883 40,620 51,931 73,926
Operating expenses:
Compensation and employee benefits 31,006 30,730 27,323 120,014 114,155
Occupancy 5,101 5,005 4,968 20,481 20,782
Equipment 1,435 1,124 1,938 5,443 7,769
Marketing 614 496 632 2,169 3,117
Federal deposit insurance and regulatory assessments 1,733 1,459 1,859 6,155 4,871
Data processing 7,774 5,363 4,624 21,570 17,467
Check card processing 1,170 1,337 1,507 5,182 5,458
Professional fees 2,726 3,089 3,908 11,043 12,247
FHLB advance prepayment fees — — 13,333 — 14,257
Amortization of core deposit intangible 1,343 1,354 1,526 5,453 6,186
Branch consolidation expense 7,286 4,014 3,336 12,337 7,623
Merger related expenses 451 225 1,194 1,503 15,947
Other operating expense 4,195 4,477 4,768 15,510 16,552
Total operating expenses 64,834 58,673 70,916 226,860 246,431
Income before provision for income taxes 26,735 31,521 43,483 142,241 81,042
Provision for income taxes 4,078 7,354 10,419 32,165 17,733
Net income 22,657 24,167 33,064 110,076 63,309
Dividends on preferred shares 1,004 1,004 1,004 4,016 2,097
Net income available to common stockholders $ 21,653 $ 23,163 $ 32,060 $ 106,060 $ 61,212
Basic earnings per share $ 0.37 $ 0.40 $ 0.53 $ 1.79 $ 1.02
Diluted earnings per share $ 0.37 $ 0.39 $ 0.54 $ 1.78 $ 1.02
Average basic shares outstanding 58,801 59,311 59,961 59,406 59,919
Average diluted shares outstanding 59,044 59,515 60,057 59,649 60,072

OceanFirst Financial Corp.

SELECTED LOAN AND DEPOSIT DATA

(dollars in thousands)

LOANS RECEIVABLE At
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Commercial:
Commercial and industrial $ 449,224 $ 457,674 $ 474,919 $ 498,245 $ 470,656
Commercial real estate - owner-occupied 1,055,065 1,123,973 1,045,514 1,066,351 1,145,065
Commercial real estate - investor 4,378,061 3,922,983 3,836,230 3,804,351 3,491,464
Total commercial 5,882,350 5,504,630 5,356,663 5,368,947 5,107,185
Consumer:
Residential real estate 2,479,701 2,401,240 2,168,545 2,189,348 2,309,459
Home equity loans and lines and other consumer 260,819 275,962 295,582 314,242 339,462
Total consumer 2,740,520 2,677,202 2,464,127 2,503,590 2,648,921
Total loans 8,622,870 8,181,832 7,820,790 7,872,537 7,756,106
Deferred origination costs (fees), net 9,332 8,282 7,437 8,029 9,486
Allowance for loan credit losses (48,850) (50,153) (53,876) (59,976) (60,735)
Loans receivable, net $ 8,583,352 $ 8,139,961 $ 7,774,351 $ 7,820,590 $ 7,704,857
Mortgage loans serviced for others $ 60,447 $ 64,840 $ 68,778 $ 74,037 $ 95,789
At December 31, 2021 Average Yield
Loan pipeline (1):
Commercial 3.65 % $ 539,426 $ 482,942 $ 463,388 $ 154,946 $ 210,024
Residential real estate 3.03 123,211 160,070 153,798 178,352 151,152
Home equity loans and lines 4.41 8,381 8,420 11,369 11,031 6,630
Total 3.55 % $ 671,018 $ 651,432 $ 628,555 $ 344,329 $ 367,806 For the Three Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Average Yield
Loan originations:
Commercial 3.28 % $ 780,464 $ 585,667 $ 259,163 (2) $ 547,591 (2) $ 173,715
Residential real estate 3.01 195,942 (3) 174,365 (3) 173,354 189,942 222,780
Home equity loans and lines 4.05 12,552 11,782 14,870 10,278 13,435
Total 3.24 % $ 988,958 $ 771,814 $ 447,387 $ 747,811 $ 409,930
Loans sold $ 649 $ 1,756 $ 29,556 $ 67,500 $ 56,126 (4)

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

(2)Excludes loans originated through the PPP of $13 million and $60 million for the three months ended June 30, 2021 and March 31, 2021, respectively.

(3)Excludes residential real estate loan pool purchases of $82.2 million and $219.7 million for the three months ended December 31, 2021 and September 30, 2021, respectively.

(4)Excludes the sale of PPP loans of $298.1 million, higher risk commercial loans of $64.8 million, net of charge-offs and under-performing residential and home equity loans and lines of $10.5 million, net of charge-offs, for the three months ended December 31, 2020.

DEPOSITS At
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Type of Account
Non-interest-bearing $ 2,412,056 $ 2,467,952 $ 2,505,355 $ 2,417,935 $ 2,133,195
Interest-bearing checking 4,201,736 4,013,565 3,628,741 3,623,132 3,646,866
Money market 736,090 816,691 734,320 782,459 783,521
Savings 1,607,933 1,620,447 1,590,441 1,568,528 1,491,251
Time deposits 775,001 855,442 956,429 1,110,758 1,372,783
Total deposits $ 9,732,816 $ 9,774,097 $ 9,415,286 $ 9,502,812 $ 9,427,616

OceanFirst Financial Corp.

ASSET QUALITY

(dollars in thousands)

ASSET QUALITY December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Non-performing loans:
Commercial and industrial $ 299 $ 354 $ 1,566 $ 1,616 $ 1,551
Commercial real estate - owner-occupied 8,687 8,997 11,527 11,676 13,054
Commercial real estate - investor 2,021 6,904 10,549 12,366 10,660
Residential real estate 6,094 5,484 6,114 6,398 8,642
Home equity loans and lines and other consumer 1,847 1,605 1,924 2,072 2,503
Total non-performing loans 18,948 23,344 31,680 34,128 36,410
Other real estate owned 106 106 106 106 106
Total non-performing assets $ 19,054 $ 23,450 $ 31,786 $ 34,234 $ 36,516
PCD loans (1) $ 41,817 $ 41,372 $ 40,064 $ 44,421 $ 48,488
Delinquent loans 30 to 89 days $ 13,546 $ 6,647 $ 5,313 $ 16,477 $ 34,683
Troubled debt restructurings:
Non-performing (included in total non-performing loans above) $ 10,974 $ 9,617 $ 9,803 $ 4,785 $ 5,158
Performing 12,320 9,661 10,311 11,466 12,009
Total troubled debt restructurings $ 23,294 $ 19,278 $ 20,114 $ 16,251 $ 17,167
Allowance for loan credit losses $ 48,850 $ 50,153 $ 53,876 $ 59,976 $ 60,735
Allowance for loan credit losses as a percent of total loans receivable (2) 0.57 % 0.61 % 0.69 % 0.76 % 0.78 %
Allowance for loan credit losses as a percent of total non-performing loans (2) 257.81 214.84 170.06 175.74 166.81
Non-performing loans as a percent of total loans receivable 0.22 0.29 0.41 0.43 0.47
Non-performing assets as a percent of total assets 0.16 0.20 0.28 0.30 0.32

(1)PCD loans are not included in non-performing loans, troubled debt restructurings or delinquent loans totals as such loans are marked to fair value at the time of acquisition.

(2)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $18.9 million, $21.3 million, $23.6 million, $25.7 million, and $28.0 million at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

NET LOAN RECOVERIES (CHARGE-OFFS) For the Three Months Ended
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Net loan recoveries (charge-offs):
Loan charge-offs $ (92) $ (163) $ (420) $ (356) $ (3,220)
Recoveries on loans 111 549 196 636 278
Net loan recoveries (charge-offs) $ 19 $ 386 $ (224) $ 280 $ (2,942) (1)
Net loan recoveries (charge-offs) to average total loans (annualized) NM* NM* 0.01 % NM* 0.15 %
Net loan recoveries (charge-offs) detail:
Commercial $ (24) $ (33) $ (304) $ 126 $ (775)
Residential real estate 21 280 — (203) (1,731)
Home equity loans and lines and other consumer 22 139 80 357 (436)
Net loan recoveries (charge-offs) $ 19 $ 386 $ (224) $ 280 $ (2,942) (1)

(1)Included in net loan charge-offs for the three months ended December 31, 2020 was $2.3 million related to under-performing residential and consumer loans sold.

* Not meaningful

OceanFirst Financial Corp.

ANALYSIS OF NET INTEREST INCOME

For the Three Months Ended
December 31, 2021 September 30, 2021 December 31, 2020
(dollars in thousands) Average<br>Balance Interest Average<br><br>Yield/<br><br>Cost (1) Average<br>Balance Interest Average<br><br>Yield/<br><br>Cost (1) Average<br>Balance Interest Average<br><br>Yield/<br><br>Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments $ 698,652 $ 300 0.17 % $ 1,053,797 $ 441 0.17 % $ 1,223,472 $ 341 0.11 %
Securities (2) 1,710,143 6,765 1.57 1,542,630 6,090 1.57 1,209,543 7,224 2.38
Loans receivable, net (3)
Commercial 5,635,642 57,829 4.07 5,361,472 55,387 4.10 5,271,633 58,776 4.44
Residential real estate 2,430,635 20,454 3.37 2,260,673 20,076 3.55 2,420,494 21,530 3.56
Home equity loans and lines and other consumer 273,007 3,109 4.52 289,011 3,426 4.70 351,920 4,691 5.30
Allowance for loan credit losses, net of deferred loan costs and fees (41,889) — — (46,436) — — (51,682) — —
Loans receivable, net 8,297,395 81,392 3.89 7,864,720 78,889 3.98 7,992,365 84,997 4.23
Total interest-earning assets 10,706,190 88,457 3.28 10,461,147 85,420 3.24 10,425,380 92,562 3.53
Non-interest-earning assets 1,247,420 1,276,890 1,322,112
Total assets $ 11,953,610 $ 11,738,037 $ 11,747,492
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking $ 4,249,001 2,851 0.27 % $ 3,841,475 2,854 0.29 % $ 3,601,814 4,836 0.53 %
Money market 790,471 282 0.14 767,854 245 0.13 766,866 586 0.30
Savings 1,611,522 141 0.03 1,609,197 146 0.04 1,489,853 240 0.06
Time deposits 819,025 1,736 0.84 904,384 2,134 0.94 1,437,770 5,017 1.39
Total 7,470,019 5,010 0.27 7,122,910 5,379 0.30 7,296,303 10,679 0.58
FHLB advances — — — — — — 204,880 779 1.51
Securities sold under agreements to repurchase 132,520 50 0.15 142,494 51 0.14 143,385 154 0.43
Other borrowings 228,980 2,811 4.87 228,695 2,858 4.96 242,030 3,099 5.09
Total borrowings 361,500 2,861 3.14 371,189 2,909 3.11 590,295 4,032 2.72
Total interest-bearing liabilities 7,831,519 7,871 0.40 7,494,099 8,288 0.44 7,886,598 14,711 0.74
Non-interest-bearing deposits 2,467,588 2,576,123 2,209,532
Non-interest-bearing liabilities 134,527 148,327 176,274
Total liabilities 10,433,634 10,218,549 10,272,404
Stockholders’ equity 1,519,976 1,519,488 1,475,088
Total liabilities and equity $ 11,953,610 $ 11,738,037 $ 11,747,492
Net interest income $ 80,586 $ 77,132 $ 77,851
Net interest rate spread (4) 2.88 % 2.80 % 2.79 %
Net interest margin (5) 2.99 % 2.93 % 2.97 %
Total cost of deposits (including non-interest-bearing deposits) 0.20 % 0.22 % 0.45 %

(footnotes on following page)

(continued)

For the Year Ended
December 31, 2021 December 31, 2020
(dollars in thousands) Average<br>Balance Interest Average<br>Yield/<br>Cost Average<br>Balance Interest Average<br>Yield/<br>Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments $ 969,982 $ 1,258 0.13 % $ 613,971 $ 1,034 0.17 %
Securities (2) 1,517,649 25,597 1.69 1,159,764 29,353 2.53
Loans receivable, net (3)
Commercial 5,362,265 221,144 4.12 5,299,813 236,749 4.47
Residential real estate 2,309,790 79,696 3.45 2,465,740 93,120 3.78
Home equity loans and lines and other consumer 298,193 14,397 4.83 390,421 19,352 4.96
Allowance for loan credit losses, net of deferred loan costs and fees (48,637) — — (33,343) — —
Loans receivable, net 7,921,611 315,237 3.98 8,122,631 349,221 4.30
Total interest-earning assets 10,409,242 342,092 3.29 9,896,366 379,608 3.84
Non-interest-earning assets 1,260,079 1,310,474
Total assets $ 11,669,321 $ 11,206,840
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking $ 3,878,465 13,400 0.35 % $ 3,168,889 19,395 0.61 %
Money market 769,157 1,105 0.14 677,554 2,902 0.43
Savings 1,581,472 631 0.04 1,449,982 2,505 0.17
Time deposits 985,328 10,074 1.02 1,531,857 23,488 1.53
Total 7,214,422 25,210 0.35 6,828,282 48,290 0.71
FHLB advances — — — 413,290 7,018 1.70
Securities sold under agreements to repurchase 134,939 253 0.19 125,500 562 0.45
Other borrowings 228,600 11,291 4.94 207,386 10,787 5.20
Total borrowings 363,539 11,544 3.18 746,176 18,367 2.46
Total interest-bearing liabilities 7,577,961 36,754 0.49 7,574,458 66,657 0.88
Non-interest-bearing deposits 2,429,547 2,031,100
Non-interest-bearing liabilities 151,950 144,571
Total liabilities 10,159,458 9,750,129
Stockholders’ equity 1,509,863 1,456,711
Total liabilities and equity $ 11,669,321 $ 11,206,840
Net interest income $ 305,338 $ 312,951
Net interest rate spread (4) 2.80 % 2.96 %
Net interest margin (5) 2.93 % 3.16 %
Total cost of deposits (including non-interest-bearing deposits) 0.26 % 0.55 %

(1)    Average yields and costs are annualized.

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

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

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

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

OceanFirst Financial Corp.

SELECTED QUARTERLY FINANCIAL DATA

(in thousands, except per share amounts)

December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Selected Financial Condition Data:
Total assets $ 11,739,616 $ 11,829,688 $ 11,483,901 $ 11,577,472 $ 11,448,313
Debt securities available-for-sale, at estimated fair value 568,255 314,620 249,330 268,511 183,302
Debt securities held-to-maturity, net of allowance for securities credit losses 1,139,193 1,125,382 1,146,735 1,082,326 937,253
Equity investments 101,155 101,314 90,917 50,159 107,079
Restricted equity investments, at cost 53,195 53,017 52,519 52,199 51,705
Loans receivable, net of allowance for loan credit losses 8,583,352 8,139,961 7,774,351 7,820,590 7,704,857
Deposits 9,732,816 9,774,097 9,415,286 9,502,812 9,427,616
Securities sold under agreements to repurchase and other borrowings 347,910 372,179 370,039 362,641 363,925
Stockholders’ equity 1,516,553 1,513,249 1,508,789 1,498,719 1,484,130
For the Three Months Ended
--- --- --- --- --- --- --- --- --- --- ---
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Selected Operating Data:
Interest income $ 88,457 $ 85,420 $ 83,341 $ 84,874 $ 92,562
Interest expense 7,871 8,288 9,325 11,270 14,711
Net interest income 80,586 77,132 74,016 73,604 77,851
Credit loss (benefit) expense (1,573) (3,179) (6,460) (620) 4,072
Net interest income after credit loss (benefit) expense 82,159 80,311 80,476 74,224 73,779
Other income (excluding net (loss) gain on equity investments and gain on sale of PPP loans) 10,662 10,349 11,227 12,548 11,032
Net (loss) gain on equity investments (1,252) (466) 576 8,287 24,487
Gain on sale of PPP loans — — — — 5,101
Operating expenses (excluding FHLB advance prepayment fees, branch consolidation and merger related expenses) 57,097 54,434 51,198 50,291 53,053
FHLB advance prepayment fees — — — — 13,333
Branch consolidation expense 7,286 4,014 26 1,011 3,336
Merger related expenses 451 225 446 381 1,194
Income before provision for income taxes 26,735 31,521 40,609 43,376 43,483
Provision for income taxes 4,078 7,354 10,054 10,679 10,419
Net income $ 22,657 $ 24,167 $ 30,555 $ 32,697 $ 33,064
Net income available to common stockholders $ 21,653 $ 23,163 $ 29,551 $ 31,693 $ 32,060
Diluted earnings per share $ 0.37 $ 0.39 $ 0.49 $ 0.53 $ 0.54
Net accretion/amortization of purchase accounting adjustments included in net interest income $ 3,610 $ 3,644 $ 2,835 $ 3,650 $ 6,186

(continued)

At or For the Three Months Ended
December 31, 2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Selected Financial Ratios and Other Data(1):
Performance Ratios (Annualized):
Return on average assets (2) 0.72 % 0.78 % 1.03 % 1.12 % 1.09 %
Return on average tangible assets (2) (3) 0.75 0.82 1.08 1.18 1.14
Return on average stockholders' equity (2) 5.65 6.05 7.88 8.59 8.65
Return on average tangible stockholders' equity (2) (3) 8.59 9.20 12.07 13.22 13.43
Stockholders' equity to total assets 12.92 12.79 13.14 12.95 12.96
Tangible stockholders' equity to tangible assets (3) 8.89 8.78 9.01 8.83 8.79
Tangible common equity to tangible assets (3) 8.40 8.29 8.50 8.33 8.28
Net interest rate spread 2.88 2.80 2.75 2.78 2.79
Net interest margin 2.99 2.93 2.89 2.93 2.97
Operating expenses to average assets (2) 2.15 1.98 1.80 1.83 2.40
Efficiency ratio (2) (4) 72.04 67.43 60.21 54.73 59.86
Loans-to-deposits 88.60 83.71 83.06 82.84 82.27 At or For the Year Ended December 31,
--- --- --- --- ---
2021 2020
Performance Ratios:
Return on average assets (2) 0.91 % 0.55 %
Return on average tangible assets (2) (3) 0.95 0.57
Return on average stockholders' equity (2) 7.02 4.20
Return on average tangible stockholders' equity (2) (3) 10.73 6.59
Net interest rate spread 2.80 2.96
Net interest margin 2.93 3.16
Operating expenses to average assets (2) 1.94 2.20
Efficiency ratio (2) (4) 63.50 63.70

(continued)

At or For the Three Months Ended
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”) $ 287,404 $ 274,807 $ 278,785 $ 274,172 $ 245,175
Nest Egg AUA/M 428,558 423,563 425,921 410,497 398,174
Total AUA/M 715,962 698,370 704,706 684,669 643,349
Per Share Data:
Cash dividends per common share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.17
Stockholders’ equity per common share at end of period 25.63 25.47 25.22 24.84 24.57
Tangible common equity per common share at end of period (3) 15.93 15.78 15.58 15.26 14.98
Common shares outstanding at end of period 59,175,046 59,417,266 59,834,018 60,329,504 60,392,043
Preferred shares outstanding at end of period 57,370 57,370 57,370 57,370 57,370
Number of full-service customer facilities: 47 58 58 62 62
Quarterly Average Balances
Total securities $ 1,710,143 $ 1,542,630 $ 1,501,484 $ 1,311,683 $ 1,209,543
Loans receivable, net 8,297,395 7,864,720 7,788,919 7,729,798 7,992,365
Total interest-earning assets 10,706,190 10,461,147 10,282,888 10,180,392 10,425,380
Total goodwill and core deposit intangible 519,401 520,765 522,122 523,499 525,511
Total assets 11,953,610 11,738,037 11,539,732 11,439,501 11,747,439
Time deposits 819,025 904,384 1,002,086 1,221,123 1,437,770
Total deposits (including non-interest-bearing deposits) 9,937,607 9,699,033 9,507,392 9,425,609 9,505,835
Total borrowed funds 361,500 371,189 363,531 357,812 590,295
Total interest-bearing liabilities 7,831,519 7,494,099 7,408,720 7,571,148 7,886,598
Non-interest bearing deposits 2,467,588 2,576,123 2,462,203 2,212,273 2,209,532
Stockholders’ equity 1,519,976 1,519,488 1,504,035 1,495,580 1,475,088
Tangible stockholders’ equity 1,000,575 998,723 981,913 972,081 949,577
Quarterly Yields
Total securities 1.57 % 1.57 % 1.62 % 2.07 % 2.38 %
Loans receivable, net 3.89 3.98 3.97 4.09 4.23
Total interest-earning assets 3.28 3.24 3.25 3.38 3.53
Time deposits 0.84 0.94 1.03 1.21 1.39
Total cost of deposits (including non-interest-bearing deposits) 0.20 0.22 0.27 0.37 0.45
Total borrowed funds 3.14 3.11 3.31 3.14 2.72
Total interest-bearing liabilities 0.40 0.44 0.50 0.60 0.74
Net interest spread 2.88 2.80 2.75 2.78 2.79
Net interest margin 2.99 2.93 2.89 2.93 2.97

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

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

(3)    Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity.

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

OceanFirst Financial Corp.

OTHER ITEMS

(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION
September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Core Earnings:
Net income available to common stockholders (GAAP) 21,653 $ 23,163 $ 29,551 $ 31,693 $ 32,060
Add (less) non-recurring and non-core items:
Merger related expenses 225 446 381 1,194
Branch consolidation expense (1) 4,014 26 1,011 3,336
Net loss (gain) on equity investments 466 (576) (8,287) (24,487)
FHLB advance prepayment fees — — — 13,333
Gain on sale of PPP loans — — — (5,101)
Income tax (benefit) expense on items (1,138) 26 1,666 2,832
Core earnings (Non-GAAP) 28,498 $ 26,730 $ 29,473 $ 26,464 $ 23,167
Core diluted earnings per share 0.48 $ 0.45 $ 0.49 $ 0.44 $ 0.39
Core Ratios (Annualized):
Return on average assets % 0.90 % 1.02 % 0.94 % 0.78 %
Return on average tangible assets 0.95 1.07 0.98 0.82
Return on average tangible stockholders’ equity 10.62 12.04 11.04 9.71
Efficiency ratio 62.22 60.06 58.37 59.69
(1) Includes 2.0 million of gains related to the sale of two branches for the three months ended December 31, 2021.

All values are in US Dollars.
2020
Core Earnings:
Net income available to common stockholders (GAAP) 106,060 $ 61,212
Add (less) non-recurring and non-core items:
Merger related expenses 15,947
Branch consolidation expense (1) 7,623
Net gain on equity investments (20,911)
FHLB advance prepayment fees 14,257
Gain on sale of PPP loans (5,101)
Two River and Country Bank opening credit loss expense under the CECL model 2,447
Income tax benefit on items (3,288)
Core earnings (Non-GAAP) 111,165 $ 72,186
Core diluted earnings per share 1.86 $ 1.20
Core Ratios:
Return on average assets % 0.64 %
Return on average tangible assets 0.68
Return on average tangible stockholders’ equity 7.77
Efficiency ratio 57.81
(1) Includes 2.0 million of gains related to the sale of two branches for the year ended December 31, 2021.

All values are in US Dollars.

(continued)

December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
Tangible Equity:
Total stockholders' equity $ 1,516,553 $ 1,513,249 $ 1,508,789 $ 1,498,719 $ 1,484,130
Less:
Goodwill 500,319 500,319 500,319 500,319 500,319
Core deposit intangible 18,215 19,558 20,912 22,273 23,668
Tangible stockholders’ equity 998,019 993,372 987,558 976,127 960,143
Less:
Preferred stock 55,527 55,527 55,527 55,527 55,527
Tangible common equity $ 942,492 $ 937,845 $ 932,031 $ 920,600 $ 904,616
Tangible Assets:
Total assets $ 11,739,616 $ 11,829,688 $ 11,483,901 $ 11,577,472 $ 11,448,313
Less:
Goodwill 500,319 500,319 500,319 500,319 500,319
Core deposit intangible 18,215 19,558 20,912 22,273 23,668
Tangible assets $ 11,221,082 $ 11,309,811 $ 10,962,670 $ 11,054,880 $ 10,924,326
Tangible stockholders' equity to tangible assets 8.89 % 8.78 % 9.01 % 8.83 % 8.79 %
Tangible common equity to tangible assets 8.40 % 8.29 % 8.50 % 8.33 % 8.28 %

23

ex992-investorpresentati

. . . 1 The 4Q 2021 Investor Presentation is for the purpose and use in conjunction with the Earnings Release furnished as Exhibit 99.2 to Form 8-K on January 27, 2022. Exhibit 99.2 OceanFirst Financial Corp. 4Q 2021 Investor Presentation1 January 2022

. . .Legal Disclaimer FORWARD LOOKING STATEMENTS. In addition to historical information, this presentation 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 OceanFirst Financial Corp. (the Company) and its wholly-owned subsidiary, OceanFirst Bank N.A. (the Bank). 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: the impact of the COVID-19 pandemic on our operations and financial results and those of our customers, changes in interest rates, general economic conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, 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, competition, demand for financial services in the Company’s market area, accounting principles and guidelines 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, 2020, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. NON-GAAP FINANCIAL INFORMATION. This presentation contains certain non-GAAP (generally accepted accounting principles) measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measures of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See reconciliations of certain non-GAAP measures included at the end of this presentation. MARKET AND INDUSTRY DATA. This presentation references certain market, industry and demographic data, forecasts and other statistical information. We have obtained this data, forecasts and information from various independent, third-party industry sources and publications. Nothing in the data, forecasts or information used or derived from third party sources should be construed as advice. Some data and other information are also based on our good faith estimates, which are derived from our review of industry publications and surveys and independent sources. We believe that these sources and estimates are reliable but have not independently verified them. Statements as to our market position are based on market data currently available to us. These estimates involve inherent risks and uncertainties and are based on assumptions that are subject to change. 2

. . .OceanFirst Financial Corp. Overview 3  Founded: 1902  NASDAQ: OCFC  Market Capitalization: $1.34 billion1  Branches: 47 Full-Service Branches in New Jersey, Philadelphia, and Metropolitan New York City2  Guiding Principles: Nimble, Certainty of Execution, and Access to Leadership (1) Market capitalization as of January 26, 2022 (2) OceanFirst is consolidating 10 additional branches on January 28, 2022, which will result in an ending count of 37 branches. VA PA NY MA CT RI MD DC DE NJ NH ME VT New Jersey Region Greater Philadelphia Region New York Region Boston Region Baltimore / D.C. Region

. . .Investment Thesis 4 Record loan growth and originations from the deployment of excess capital, with a strong funding base for continued production. Strength of Balance Sheet Cost of deposits remained low at 20 basis points (bps) at December 31, 2021 Low-Cost and Durable Deposit Base Digital products and customer experience on par with national banks and fintechs, outpacing regional and community banksDigital Innovation Acquired attractive and underappreciated assets in exurban markets at favorable prices Disciplined and Strategic M&A Deep banking, regulatory, M&A, and integration experience Demonstrated strong pandemic response Meaningful insider ownership aligned with shareholder interests Seasoned Leadership Commitment to management of credit, interest rate and regulatory / compliance riskConservative Risk Culture Well Positioned to Generate Strong Returns

. . . I N V E S T O R P R E S E N T A T I O N 5 Quarterly Update

. . . $671.0MM $989.0MM Loan Pipeline Loan Originations Fourth Quarter 2021 Financial Highlights 6 Key Financial Metrics Strategic and Operational Focus $28.5MM Core Earnings1 $0.37 $0.48 Diluted EPS Core EPS1 0.95% 11.30% Core ROAA1 Core ROATE1 2.99% 62.57% NIM Core Efficiency Ratio1 $15.93 $10.1MM TBV per Share Q4 Dividends  Commercial banking team hires in 2021 helping to drive organic growth, deploy excess liquidity, and build a record pipeline and originations for continued expansion in 2022  Committing resources to core businesses, loan growth, and digital services  Optimize branch network to increase efficiencies and improve average deposits by branch to over $250 million  COVID-19 on-going initiatives for employees, customers, and community $441MM 21.6% Loan Growth Annualized Loan Growth (1) Core metrics exclude merger related expenses, branch consolidation expenses, and net loss on equity investments. Refer to the Non-GAAP reconciliation in the Earnings Release for additional information.

. . .Net Interest Margin – Quarter over Quarter 7  Competitive market environment as peers with similar levels of liquidity compete on rate for quality credit.  Average loan growth in the prior two quarters was ~$400MM while the loan pipeline of $671MM remains at record levels.  Loan-to-deposit position provides funding base for future loan growth.  Decreasing deposit costs.  Asset-sensitive balance sheet well-positioned for rising interest rates, as 47% of the Commercial loan book is floating. (1) Core NIM excludes purchase accounting and prepayment fee income. Core NIM1 vs NIM Q4-21 NIM Bridge Headwinds Tailwinds Rate environment and other 0.11% Q3-21 NIM Reduction in excess liquidity 0.01% Impact of prepayment fees (0.06)% Q4-21 NIM 2.93% 2.99% 2.73%2.71% 2.89% 2.97% Q4-20 2.93% 2.75% Q1-21 Q2-21 2.93% 2.75% Q3-21 2.99% 2.81% Q4-21 Core NIMNIM

. . .Credit Quality (1 of 3) 8 Loan Allowance for Credit Losses (ACL) Plus PCD Marks / Total Loans Net Charge-offs (NCOs) / (Recoveries) and Credit Loss Expense (Benefit) ($’000) Q1-21 0.36% 0.61% Q4-20 0.26% 0.78% 0.33% 0.76% 0.30% 0.69% Q2-21 Q3-21 0.22% 1.14% 0.57% Q4-21 1.09% 0.99% 0.87% 0.79% PCD Marks ACL 4,072 -620 -6,460 -3,179 -1,573 2,942 -386 -19 0.15% -280 Q4-20 Q2-21 0.00% Q1-21 224 0.01% 0.00% Q3-21 0.00% Q4-21 Credit Loss Expense / (Benefit) Net Charge-offs / (Recoveries) NCOs / Average loans

. . . Stabilizing asset quality trends align with improving economic outlook. Credit Quality (2 of 3) 9 Non-Performing Loans and Assets ($’000) Special Mention and Substandard Loans ($’000) Note: Of the $91.6 million in Special Mention loans and $148.5 million of Substandard loans, $88.9 million (or 97.0%) and $138.4 million (or 93.2%) are current on payments, respectively. 0.43% 0.47% 106 0.22% 106 106 0.30% 0.32% 106 Q4-20 Q1-21 0.41% 0.28% 106 Q2-21 0.29% 0.16% 0.20% Q3-21 Q4-21 Non-performing loans to total loans Non-performing assets to total assets Non-performing loans OREO 36,410 34,128 31,680 23,344 18,948 194,372 188,981 182,926 158,469 148,451 165,844 150,221 129,955 98,687 91,607 Q3-21Q2-21Q4-20 Q1-21 Q4-21 SubstandardSpecial Mention

. . .Credit Quality (3 of 3) 10 Commercial vs Consumer ($’million)Loans by Payment Structure ($’million) ~ 99.6% of total loans comply with pre-COVID terms as of 12/31/21. 96.0% 99.0% 97.0% 96.5% 97.5% 50.0% 98.5% 50.5% 100.0% 51.0% 51.5% 98.0% 99.5% 9 Q2-21 8,072 2 Q3-21 32 15 8,573 51 7,669 7 7,531 124 71 7,691 30 Q4-20 22 73 31 131 84 Q1-21 37 Q4-21 Delinquencies and non-accrual Paying under COVID-19 modification (interest only) Forbearance (No payments made under an agreement) Paying in compliance with pre-COVID terms 100.0% 99.9% 99.7% 99.4% 50.0% 99.8% 99.5% 99.6% 99.3% 50.2% 99.1% 98.9% 50.1% 50.3% 99.2% 99.0% 2,720 2 Commercial 13 0 0 Consumer 5,854 15 19

. . . Core Efficiency Ratio1 Expense Discipline and Focused Investment 11  Q4-21 expenses were elevated due to additional costs relating to the: (i) core conversion; (ii) a year-end adjustment to the incentive plan; and (iii) expenses associated with the contribution of additional shares to the ESOP retirement plan. These expenses will moderate in Q1-22 and the Bank will realize expense savings from the branch optimization strategy. As a result, Management expects Q1-22 expenses to range between $54 million to $55 million.  Technology expense, which represents data processing, communications, and digitally focused departments, accounted for 21.2% of total core non- interest expense for the full year 2021. For the full year 2020, these costs accounted for 17.8% of core non- interest expense.  The branch optimization strategy (19 branch consolidations and 2 branch sales in December 2021 and January 2022) is expected to significantly improve the non-interest expense run-rate beginning in Q1-22. Core Non-Interest Expense1 ($’000) 42,838 40,838 40,752 43,222 43,126 10,215 9,453 10,446 11,212 13,971 Q3-21Q4-20 50,291 Q1-21 Q2-21 51,19853,053 Q4-21 54,434 57,097 Technology Expense Other Core Non-Int Exp 60.06% 59.69% Q4-20 58.37% Q1-21 Q2-21 62.22% Q3-21 62.57% Q4-21 1.78%1.80% 1.78% 1.84% 1.90% Core Non-Interest Expense to Average Assets (Annualized)Core Efficiency Ratio (1) Core metrics exclude merger related expenses, branch consolidation expenses, net loss/gain on equity investments, Federal Home Loan Bank (FHLB) advance prepayment fees, and gain on sale of Paycheck Protection Program (PPP) loans. Refer to the Non-GAAP reconciliation in the Earnings Release for additional information.

. . .Generating Consistent and Attractive Returns 12 Book Value and Tangible Book Value per Common Share1 Core ROAA and ROTE1 • Strengthened balance sheet and increased tangible book value per common share by 1.0% versus linked quarter and 6.3% (or $0.95 per share) versus Q4-20. • Repurchased 1.7 million shares in 2021; 3.3 million shares remain available for repurchase. Capital Management ($ in millions) 14.98 15.26 15.58 15.78 15.93 25.22 25.47 25.63 Q4-20 Q1-21 24.57 Q4-21 24.84 Q2-21 Q3-21 Book Value per Share Tangible Book Value per Common Share 1.02%0.94% 11.04% 9.71% 0.78% Q4-20 Q1-21 12.04% Q2-21 10.62% 0.90% Q3-21 11.30% 0.95% Q4-21 Core ROTE Core ROAA 10 10 10 10 10 10 11 10 5 Q1-21Q4-20 8.79% 9.01% 8.83% Q2-21 Q3-21 8.78% 8.89% Q4-21 Tangible Stockholders Equity to Tangible Assets1 Cash Dividend QTDShare Repurchases QTD (1) Core metrics exclude merger related expenses, branch consolidation expenses, net loss/gain on equity investments, FHLB advance prepayment fees, and gain on sale of PPP loans. Tangible book value per common share excludes goodwill, core deposit intangible, and preferred equity. Refer to the Non-GAAP reconciliation in the Earnings Release for additional information.

. . . I N V E S T O R P R E S E N T A T I O N 13 Investor Presentation

. . .Investment Thesis 14 Record loan growth and originations from the deployment of excess capital, with a strong funding base for continued production. Strength of Balance Sheet Cost of deposits remained low at 20 basis points (bps) at December 31, 2021 Low-Cost and Durable Deposit Base Digital products and customer experience on par with national banks and fintechs, outpacing regional and community banksDigital Innovation Acquired attractive and underappreciated assets in exurban markets at favorable prices Disciplined and Strategic M&A Deep banking, regulatory, M&A, and integration experience Demonstrated strong pandemic response Meaningful insider ownership aligned with shareholder interest Seasoned Leadership Commitment to management of credit, interest rate and regulatory / compliance riskConservative Risk Culture Well Positioned to Generate Strong Returns

. . .Significant Growth in Commercial Loan Portfolio ($ in millions) 15 Investor CRE CAGR 43.0% Owner Occupied CRE / C&I CAGR 22.1% Strength of Balance Sheet 511 1,135 1,187 2,023 2,296 3,492 4,378 308 534 570 741 793 1,145 1,055 305 396 471 449 831 1,704 1,749 2,045 2,321 2,309 2,480 291 281 475 408 339 261 2015 193 145 2016 153 188 2018 20202017 7,756 2019 2021 1,988 3,817 3,975 5,589 6,214 8,623 Home Equity & Consumer Residential C&I Loan Owner Occupied CRE Investor CRE

. . .Successful Commercial Loan Growth 16 2015 2021 48% 68% +20% (Commercial % of Loan Portfolio) Commercial Loans by Geography as of 20211 51% of Commercial Loans Originated in Philadelphia and NY Emphasis on Commercial Increase of $4.9B in Commercial Loans since 2015 Strength of Balance Sheet (1) Baltimore balances included in the $5.9 billion total, representing less than 1% of the commercial portfolio 46% 30% 21% 3% New Jersey New York Philadelphia Boston / Baltimore Total: $5.9B

. . .OCFC’s Strong History of Credit Discipline 17 Global Financial Crisis Net Charge Offs (NCOs) / Avg. Loans (%) Hurricane Sandy (1) Source: S&P Global (2) Proxy and US Bank industry reporting is on a one quarter lag (3) Peer group in OCFC’s DEF-14 Proxy Statement. This excludes UBNK due to the sale to People’s United and BPFH due to merger with SBV Financial Group. Strength of Balance Sheet 1.00% -0.50% 0.00% 3.00% 0.50% 1.50% 2.00% 2.50% 2008 20102007 2009 Q3-212011 2012 2013 2014 2015 2016 20202017 2018 2019 Q1-21 Q2-21 US Commercial Banks $10-50 bn 1, 2 OCFC Peer Group 1, 2, 3 OCFC’s 15 bps average NCO is 81% lower than the 79 bps average NCO for US Commercial Banks $10-50 billion in size.

. . .Conservative Credit Risk Profile 18 2016 0.07% 0.05% 0.11% 0.01% 0.54% 0.28% 2019 0.08% 0.12% 2015 0.11% 0.01% 0.03% 0.36% 0.08% 2018 0.21% 0.47% 0.52% 0.01% 0.05% 0.35% 2017 0.12% 0.03% 0.10% 0.05% 0.13% 0.31% 0.00% 0.04% 0.12% 0.02% 0.30% 2020 0.00% 0.02% 2021 0.91% 0.29% 0.22% ResidentialCommercial & Industrial Commercial Real Estate Consumer (1) Source: S&P Global (2) Peer group reporting is on a one quarter lag 2018 0.25% 2016 20172015 1.05% 0.45% 0.54% 0.22% 2019 0.32% 2020 0.16% 2021 Q3-21 Peer Group Average (0.54%)1,2 NPA/Assets Strength of Balance Sheet Continued Focus on Credit RiskNon-performing Loans by Type as % of Loans

. . .Strategic Capital Allocation Generates Shareholder Returns 19 Strength of Balance Sheet  Stable & competitive dividend  100th consecutive quarter  Historical Payout Ratio of 30% to 40%  Repurchased 1.7 million shares in 2021; 3.3 million shares remain available for repurchase  Strategic acquisitions in critical new markets 9 13 19 30 34 41 40 7 11 26 15 36 2 2015 2016 2018 0 2017 15 20202019 2021 15 56 19 40 60 77 Share Repurchases Cash Dividends Annual Return of Capital ($ in millions)

. . .Business Model Strength Driving Significant Capital Return 20 $12.33 $12.91 $13.67 $12.94 $13.58 $14.26 $15.13 $14.98 $15.93 $0.49 $1.01 $1.55 $2.15 $2.77 $3.45 $4.13 $4.81 $0.55 $0.94 $1.04 $1.09 $1.39 $1.97 $2.25 $2.86 20172013 2014 20162015 2019 $21.36 2018 2020 2021 $12.33 $13.95 $15.62 $15.53 $16.82 $18.42 $20.55 $23.60 Cumulative Share Repurchase/Share Cumulative Diviends/Share TBVPS  The modest growth in TBV/share can be attributed to: (i) minimally dilutive acquisitions; (ii) stock buybacks; and (iii) a healthy and consistent dividend. (1) Tangible book value per common share excludes goodwill, core deposit intangible, and preferred equity. Refer to the Non-GAAP reconciliation in the Earnings Release for additional information. Growth Since 2013 Tangible Book Value per Share 1 29.2% Total Capital Return per Share 91.4% Strength of Balance Sheet

. . .Continued Focus on Growing Core Deposits1 21 2021 18% 2015 25% +7% Growth in Non-Interest BearingShift Toward Non-Interest Bearing Deposits Non-Interest Bearing CAGR 38.8% Low-Cost Deposit Base 647 607 866 936 1,373 775 673 661 877 898 1,491 1,608459 364 570 578 784 736 860 1,627 1,954 2,350 2,539 3,647 4,202 337 783 757 1,151 1,377 2,133 2,412 2017 311153 255 20182015 2016 2019 2020 9,428 2021 1,917 4,188 4,343 5,815 6,329 9,733 Non-interest-bearing deposits Interest-bearing deposits Savings Time depositsMoney Market (1) Core deposits represent all deposits less time deposits.

. . .Deposit Growth with Branch Optimization Strategy 22 1 (1) Closed 2 additional branches in 2013. 2 branches sold and 9 branches consolidated in Q4-21. (2) Reflects 9 branch consolidations and the sale of 2 branches in Q4-21 and 10 additional consolidations in Q1-22, further improving average branch size to over $250 million. (3) Core metrics exclude merger related expenses, branch consolidation expenses, and net loss on equity investments. Refer to the Non-GAAP reconciliation in the Earnings Release for additional information. Low-Cost Deposit Base Active Branch Evolution Deposits per Branch ($ in millions) (56) bps2.39% 1.83% 2015 2021 Core Non-interest Expense3 to Total Avg. Assets 27 47 87 67 2015 CurrentAcquisitions Branch Consolidation Target Q1-222 1 $71.0 $68.7 $94.4 $98.6 $113.0 $152.1 $207.1 202120192015 20172016 2018 2020 Q1-22 $250+ 2.9x 37

. . .Treasury Management Services 23 Treasury Management Solutions: • ACH Origination, Receipts, Addenda Reporting and Debit Blocking • Digital Account Opening • Accept Multiple Forms of Payment • Account Analysis Statements • Business Online Banking • Coin & Currency Ordering • Commercial Card • Investment Sweep • Bill Pay • Insured Cash Sweep (ICS) • Escrow • Foreign Wire • Global Trade • Initiate ACH and Wires Online • Lockbox • Merchant • Remote Deposit Capture • Payroll • Positive Pay • Zero Balance Accounts Balances Over $5.2 billion Accounts Over 30,500 Digital Acceptance Promote digital solutions and demonstrate operational efficiencies for our commercial customers. Continuous Improvement Commercial check volume continues to decrease as our customers initiate more ACH transactions through online banking. Treasury Innovation Investments in technology to enhance our Treasury Solutions and provide a robust online experience for our commercial customers. Low-Cost Deposit Base

. . . Tap & Pay Contactless Debit Cards Core Conversion Digital Transformation Has Been a Multi-Year Effort… 24 Continuous Investment in Talent and Technology • Funded from ongoing earnings and branch consolidations Nest Egg AUM/A: $429 million2 Paperless Residential Loan Applications (Blend) Best Rated Digital Bank in NJ1 Account Opening by Phone 1st Dual Function ITMs Wearables & eWallets Mobile Account Opening Reputation Management 100% Certified Digital Bankers Certified Digital Banker Training Launch Nest Egg Hybrid Robo- Advisor 1st FinTech Equity Investment Mobile Responsive Online BankingMobile Biometrics Omni-Channel Customer Care Platform 2015 2016 2017 2018 2019 2020 2021 Digital Innovation Reached Over 268,000 Video Transactions 1 Source: ratings from Google My Business, Google App Store, and Apple App Store 2 As of December 31, 2021 Total IT and Digital FTEs 7 98 2015 2021 14x

. . .…And is Preparing OceanFirst for 2022 and Beyond 25 Digitally Agile Bank Google My Business Ownership Targeted Digital Marketing COVID Communications Certified Digital Banker 2.0 (LMS) CRM (CCC, TCS, OLB & OAO) Digital LMS (OFB University) Concur Invoice & Expense Mgmt. Microsoft Teams AIS Data Science Monthly KPI Dashboards (OPS) Site Monitoring & Response Plans Cyber/Fraud Prevention Data Classification 67 Branches Successfully Consolidated 720 employees now able to work remotely* Nest Egg Auxilior JAM FINTOP * Pre-COVID, only 412 laptops had been issued to employees Digital Innovation Salesforce nCino LexisNexis CoStar

. . .Positive Customer Response to our Digital Capabilities 26 Mobile Capabilities Survey1 Mobile App Customer Ratings2 11 11 12 14 Large MidAtlantic FinTechs / Digital National / Regional OceanFirst • A few notables include: • BofA 17 • Chase 16 • USAA 14 • TD 8 (# of Features, Out of 18) (Apple & Google) 4.3 4.6 4.7 4.7 4.6 Proxy Peer Group FinTechs / Digital Large MidAtlantic National / Regional OceanFirst • A few notables include: • USAA 4.8 • Chime 4.7 • Chase 4.7 • M&T 4.7 # Ratings = 8,440 Median # Ratings = 4,476 (1) Source: S&P Global 2020 US Mobile Banking Report. (2) Source: iTunes App and Google App as of January 6th, 2022. Digital Innovation

. . .Digital Customer Acquisition 27 Attaining Scale… … And Attracting Valuable Customers • Online application commenced1 rate of 42% vs our peers at 34%. • Retail Checking opened in 4Q 2021: • Online account openings (OAO) exceeded average branch openings by 3x (159 OAO vs 49 branch average). Customer Usage Statistics Online Branch Digital Usage 93%2 76%2 Mobile Usage 90%2 59%2 Direct Deposits / Month 2.663 1.913 Mobile Deposits / Month 0.403 0.273 Debit Card Transactions / Month 23.483 21.503 Average Balance $5,2054 $20,6154 (1) Accounts successfully opened. (2) Retail checking accounts opened January through June 2021 as of September 30, 2021. (3) Retail checking accounts opened January through March 2021 as of June 30, 2021. (4) Retail checking accounts opened January through September 2021 as of December 31, 2021. Digital Innovation

. . .Asset Growth Supplemented by Strategic M&A 28 ($ in millions) Strategic M&A Target Closing Date Transaction Value Total Assets Colonial American Bank July 31, 2015 ~$12 million $142 million Cape Bancorp May 2, 2016 ~$196 million $1,518 million Ocean Shore Holding Co. November 30, 2016 ~$146 million $1,097 million Sun Bancorp, Inc. January 31, 2018 ~$475 million $2,044 million Capital Bank of New Jersey January 31, 2019 ~$77 million $495 million Two River Bancorp January 1, 2020 ~$197 million $1,109 million Country Bank Holding Company Inc. January 1, 2020 ~$113 million $798 million Partners Bancorp2 TBD ~$186 million $1,640 million Weighted average1: Price/Tangible Book Value 158%; Core Deposit Premium 9.0% $5,167 $495 $142 $11,740 20172015 $2,615 2016 $2,044 2018 2019 $1,907 2020 $11,448 2021 $2,593 $7,516 $5,416 $8,246 Acquired Assets Organic Assets (1) At time of announcement (2) Partners Bancorp acquisition is pending final regulatory approval.

. . .Northeast and Mid-Atlantic Expansion Opportunities1 29 Strategic M&A • New Jersey is an attractive market • Statewide total population of 9.3 million • Most densely populated state • 11th most populous state • Median household income of $82,500 • Significant opportunities for acquisitions to build customer base • Support expansion in Pennsylvania, Metropolitan New York, Boston, Baltimore, and Washington D.C. Northeast U.S., DE, MD + D.C. Metro provides access to ~20% of the U.S. population (1) Source: U.S. Census Bureau VA PA NY MA CT RI MD DC DE NJ NH ME VT New Jersey Region Greater Philadelphia Region New York Region Boston Region Baltimore / D.C. Region

. . .Experienced Management Team with Banking Expertise 30 Seasoned Leadership Substantial insider ownership of 9%, including Directors, Executive Officers, ESOP and OceanFirst Foundation. Executive Title Years Experience1 Select Experience Christopher D. Maher Chairman & Chief Executive Officer 9 • Director of the Federal Reserve Bank of Philadelphia • Former President and CEO of Patriot National Bancorp • Former EVP at Dime Community Bancshares, Inc. Joseph J. Lebel III President & Chief Operating Officer 16 • Wachovia Bank • Member of the Board for the New Jersey Chamber of Commerce Michael J. Fitzpatrick Executive Vice President & Chief Financial Officer 29 • KPMG Steven J. Tsimbinos Executive Vice President, General Counsel & Corporate Secretary 11 • Thacher Proffitt & Wood • Lowenstein Sandler PC Grace M. Vallacchi Executive Vice President & Chief Risk Officer 4 • Office of the Comptroller of the Currency • First Fidelity Michele Estep Executive Vice President & Chief Administrative Officer 14 • Sun National Bancorp • Key Bank Karthik Sridharan Executive Vice President & Chief Information Officer 2 • Citigroup • JP Morgan Chase • Bank of America (1) Represents years of experience at OceanFirst and includes years at acquired banks.

. . . I N V E S T O R P R E S E N T A T I O N 31 Appendix

. . .Interest Rate Sensitivity (1 of 2) 32  OceanFirst Bank balance sheet is highly asset-sensitive. A measurable upward change in the rate environment could have a significant impact to our performance going forward. Economic Value of Equity (EVE)1 - % ChangeEarnings at Risk (EAR)1 - % Change -20 -15 -10 -5 0 5 10 15 20 25 +300 bps Base+200 bps +100 bps -100 bps OceanFirst % Change -6 -4 -2 0 2 4 6 8 10 12 +200 bps+300 bps +100 bps Base -100 bps OceanFirst % Change Impact to Net Interest Income1 +$32.3MM +$22.4MM +$11.6MM -$14.4MM (1) Refer to the Quantitative and Qualitative Disclosures About Market Risk to be filed with the Form 10-K for additional details.

. . .Interest Rate Sensitivity (2 of 2) 33  The Company’s one-year gap was a positive 14.2% as compared to a positive 18.1% at December 31, 2020. Change in Interest Rates in Basis Points (Rate Shock) December 31, 2021 Economic Value of Equity Net Interest Income $'000 Amount % Change EVE Ratio Amount % Change 300 1,817,134 24.5% 16.7% 346,723 10.3% 200 1,738,602 19.1% 15.6% 336,816 7.1% 100 1,621,984 11.1% 14.2% 325,960 3.7% Static 1,459,706 0.0% 12.5% 314,395 0.0% -100 1,230,947 -15.7% 10.3% 299,994 -4.6% Rate Characteristics 79.00% 91.00% 55.00% 53.00% 66.00% 44.00% 92.00% 21.00% 9.00% 45.00% 47.00% 34.00% 56.00% Commercial Loans (CRE & C&I) Securities Mortgage Loans Consumer Loans 8.00% Total Assets (Weighted Avg) Borrowings Deposits Adjustable/Floating Fixed Core Deposits Note: Data as of 12/31/21

Report a Problem

Category
Description
Email (optional, for follow-up)