Oceanfirst Financial Corp. · NASDAQ:OCFC

Oceanfirst Financial — Investor Presentation (September 2025)

27 slides from Oceanfirst Financial's investor presentation, Sep 2, 2025

  1. Slide 1: OceanFirst Financial Corp. Investor Presentation September 2025

    . . . (1) The 2Q 2025 Investor Presentation should be read in conjunction with the Earnings Release furnished as Exhibit 99.1 to Form 8-K filed with the SEC on July 24, 2025, and the Quarterly Report on Form 10-Q filed with the SEC on August 4, 2025. OceanFirst Financial Corp. Investor Presentation(

  2. Slide 2: Legal Disclaimer

    . . .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, strateg

  3. Slide 3: Tailored Footprint Across Key Markets

    . . . Tailored Footprint Across Key Markets Overview of OceanFirst Corporate Overview & Market Data Ticker OCFC (NASDAQ) HQ Red Bank, NJ Branch Network 40 branches; 8 commercial banking centers Core Markets New Jersey, New York City, Greater Philadelphia Expansion Markets Boston, Northern Virginia a

  4. Slide 4: Proven Historical Net Interest Income and Loan Growth

    . . .Proven Historical Net Interest Income and Loan Growth 120,262 169,218 240,502 255,971 312,951 305,338 377,477 369,731 334,035 174,288 3.46% 2016 3.52% 2017 3.71% 2018 3.62% 2019 3.16% 2020 2.93% 2021 3.37% 2022 3.02% 2023 2.72% 2024 2.91% 351,465 YTD Jun-25 Net Interest Margin YTD Net Interest

  5. Slide 5: Successful Commercial Loan Growth and Geographic Diversification

    . . .Successful Commercial Loan Growth and Geographic Diversification 48% 67% 2016 Q2-25 +19% (Commercial % of Loan Portfolio) Commercial Loans by Geography(1) as of Q2-25 Emphasis on Commercial Increase of $5.0B in commercial loans since 2016 Total: $6.8B (1) Based on location the loan is managed.

  6. Slide 6: Balanced Approach to Deposit Pricing and Growth

    . . .Balanced Approach to Deposit Pricing and Growth Deposit Composition ($’millions) 646 607 867 937 1,373 775 1,542 2,445 2,081 2,299673 661 877 898 1,491 1,608 1,488 1,399 1,066 1,023 459 364 570 784 736 714 1,022 1,301 1,378 1,627 1,954 2,350 2,539 3,647 4,202 3,830 3,912 4,001 3,845 783 757 1,1

  7. Slide 7: Conservative Credit Risk Profile

    . . .Conservative Credit Risk Profile 0.05% 2017 0.09% 0.01% 0.03% 0.13% 0.05% 2018 0.05% 0.08% 0.00% 0.12% 0.04% 2019 0.14% 0.17% 0.02% 0.11% 0.03% 2020 0.02% 0.10% 0.00% 0.07% 0.02% 2021 0.07% 0.04% 0.00% 0.06% 0.02% 2022 0.18% 0.00% 0.05% 0.02% 2023 0.10% 0.04% 0.00% 0.10% 0.03% 2024 0.14% 0.04%

  8. Slide 8: Business Model Strength Driving Significant Capital Return

    . . .Business Model Strength Driving Significant Capital Return $12.33 $0.49 $0.55 $1.01 $13.67 2015 $1.04 $1.55 $12.94 2016 $1.09 $2.15 $13.58 2017 $1.39 $2.77 $14.26 2018 $1.97 $3.45 $15.13 2019 $2.25 $4.13 $14.98 2020 $2.86 $4.81 $15.93 2021 $2.98 $5.55 $17.08 2022 $2.98 $6.35 $18.35 2023 $3.35 $

  9. Slide 9: Quarterly

    . . . Quarterly Earnings Update 9

  10. Slide 10: Q2-25 Financial Highlights

    . . .Q2-25 Financial Highlights (1) For non-GAAP financial measures, please refer to the ‘Non-GAAP Reconciliations’ in the Appendices for a reconciliation to GAAP financial information Financial Highlights $0.31 Core Diluted EPS(1) $88 million Net Interest Income 0.53% Core ROAA(1) 6.17% Core ROTCE(

  11. Slide 11: Premier Bank Launch

    . . .Premier Bank Launch Multi-Year Aspiration Goals Performance To Date  Teams to achieve their full run-rate in 2 to 3 years.  Target deposits of $2 to $3 billion by end of 2027.  9 Teams hired and onboarded, totaling 36 FTEs.  $115 million of deposits thru 6/30/25 at a weighted average cost o

  12. Slide 12: Loan Portfolio Trends

    . . .Loan Portfolio Trends Moderated Loan Growth in the Portfolio ($’millions)  Total loan pipeline at Q2-25 is $955 million, driven by a record commercial loan pipeline of $791 million. 5,325 5,273 5,288 5,200 5,068 858 842 902 897 914 616 661 648 749 863 2,978 3,003 3,050 3,053 3,119 5.46% 242 Q2

  13. Slide 13: Quarterly Credit Trends (1 of 2)

    . . . Strong asset quality trends driven by prudent growth and strong credit risk management Quarterly Credit Trends (1 of 2) Note: At June 30, 2025, of the Special Mention loans and Substandard loans represented above, 87.3% and 82.9% were current on payments, respectively. (1) OCFC criticized loan

  14. Slide 14: Quarterly Credit Trends (2 of 2)

    . . .Quarterly Credit Trends (2 of 2) Loan Allowance for Credit Losses (ACL) Plus PCD & General Credit Marks / Total Loans NCOs / (Recoveries) and Provision for Credit Loss Expense ($’thousands) 0.06% 0.69% Q2-24 0.06% 0.69% Q3-24 0.06% 0.73% Q4-24 0.05% 0.78% Q1-25 0.05% 0.78% Q2-25 0.75% 0.75% 0.7

  15. Slide 15: Deposit Trends

    . . .Deposit Trends (1) Deposit beta is calculated as the increase in rate paid on total deposits per quarter divided by the incremental increase in the fed funds rate since January 1, 2022. Up cycle is the period from January 1, 2022 to June 30, 2024. The down cycle is from July 1, 2024 to June 30,

  16. Slide 16: Net Interest Income and Net Interest Margin Trends

    . . .Net Interest Income and Net Interest Margin Trends Net Interest Margin NIM Bridge 2.71% Q2-24 2.67% Q3-24 2.69% Q4-24 2.90% Q1-25 2.91% Q2-25 NIM Net Interest Income ($’000) 82,263 Q2-24 82,219 Q3-24 83,329 Q4-24 86,652 Q1-25 87,636 Q2-25 Net Interest Income Headwinds  Competitive market envir

  17. Slide 17: Expense Discipline and Focused Investment

    . . . Core Efficiency Ratio (1) Expense Discipline and Focused Investment Core Non-Interest Expense (1) ($’000) 8,377 9,512 10,328 9,081 10,867 2,161 1,970 2,620 2,425 4,3366,018 5,940 6,366 6,647 6,8082,685 2,618 2,517 2,983 2,8986,243 6,183 6,306 6,418 6,323 33,136 35,844 36,602 36,740 40,242 Q2-2

  18. Slide 18: Generating Consistent Returns

    . . .Generating Consistent Returns Book Value and Tangible Book Value per Common Share ($)(1) Core ROAA(1), ROTE(1), and ROTCE(1)  Capital remains strong and above “well capitalized” levels.  Tangible book value per common share increased $0.41 or 2% from the same quarter last year.  The Company

  19. Slide 19: Management Q3-25 Outlook

    . . .Management Q3-25 Outlook Loans Deposits Operating Expenses Net Interest Income • Expecting accelerating growth, subject to unanticipated payoffs and supported by our strong pipeline. • Maintain loan-to-deposit ratio ~100%. 2-3% growth sequentially (8-12% annualized) Growth consistent with loan

  20. Slide 20: Appendix

    Appendix @ OcEANFiRSsT

  21. Slide 21: Diversified CRE Portfolio with Conservative Risk Profile

    . . .Diversified CRE Portfolio with Conservative Risk Profile  Underlying collateral is diversified.  Low concentration in the Multi-Family portfolio, which represents 6% of total assets.  Maturity wall is modest and has a minimal impact: Our CRE Investor- Owned maturity wall, totaling $1.0 billi

  22. Slide 22: Conservative Risk Profile of CRE IO Office & Construction

    . . .Conservative Risk Profile of CRE IO Office & Construction Portfolio Highlights  96% of Office & Construction loans are pass-rated (not classified or criticized).  93% of Office & Construction loans are classified as non-Central Business District loans.  CBD loans comprise < 1% of total asset

  23. Slide 23: Track Record of Strong Credit Performance

    . . . COVID-19 Pandemic Track Record of Strong Credit Performance  From 2006 to Q2-25, inclusive of the Global Financial Crisis, Hurricane Sandy, and the COVID-19 Pandemic, OCFC’s NCO to average loans totaled 13 bps per year compared to 71 bps for all commercial banks between $10 - $50 billion in a

  24. Slide 24: Northeast Outperforms Through Credit Cycles

    . . . 0.29% 0.32% 0.51% 0.63% 0.80% 1.43% Northeast Midwest Mid Atlantic Southeast Southwest West COVID-19 Pandemic Hurricane Sandy Global Financial Crisis Northeast Outperforms Through Credit Cycles…  Historically, net charge-offs for Northeastern headquartered banks have greatly outperformed majo

  25. Slide 25: With a Similar Story in Commercial Real Estate Portfolios

    . . . Hurricane Sandy Global Financial Crisis COVID-19 Pandemic …With a Similar Story in Commercial Real Estate Portfolios 0.03% 0.04% 0.09% 0.10% 0.11% 0.16% Northeast Southwest Southeast Mid Atlantic Midwest West GFC Peak CRE NCOs  Northeastern banks’ CRE portfolio net charge-offs have also histo

  26. Slide 26: Non-GAAP Reconciliations (1 of 2)

    . . .Non-GAAP Reconciliations (1 of 2) 26 Non-GAAP Reconciliation For the Three Months Ended $'000 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Core Earnings: Net income available to common stockholders (GAAP) $ 16,200 $ 20,505 $ 20,905 $ 24,112 $ 23,369 Adjustment

  27. Slide 27: Non-GAAP Reconciliations (2 of 2)

    . . .Non-GAAP Reconciliations (2 of 2) 27 Non-GAAP Reconciliation $'000 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Tangible Equity Total stockholders' equity $ 1,643,680 $ 1,709,117 $ 1,702,757 $ 1,694,508 $ 1,676,669 Less: Goodwill 523,308 523,308 523,308 506,14

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