RED BANK, N.J., April 23, 2026 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.36 per diluted share, for the quarter ended March 31, 2026, as compared to $20.5 million, or $0.35 per diluted share, for the corresponding prior year period, and compared to $13.1 million, or $0.23 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,Performance Ratios (Annualized)March 31, December 31, March 31, 2026 2025 2025 Return on average assets0.57% 0.36% 0.62%Return on average stockholders’ equity4.95 3.12 4.85 Return on average tangible stockholders’ equity(a)7.22 4.57 7.05 Return on average tangible common equity(a)7.22 4.57 7.40 Efficiency ratio71.13 80.37 65.67 Net interest margin2.93 2.87 2.90
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Other Items - Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.
Core earnings1 for the quarter ended March 31, 2026 were $24.3 million, or $0.43 per diluted share, an increase from $20.3 million, or $0.35 per diluted share, for the corresponding prior year period, and an increase from $23.5 million, or $0.41 per diluted share, for the linked quarter.
Core earnings PTPP1 for the quarter ended March 31, 2026 were $34.4 million, or $0.60 per diluted share, an increase from $32.4 million, or $0.56 per diluted share, for the corresponding prior year period, and an increase from $33.2 million or $0.58 per diluted share, for the linked quarter. Selected performance metrics are as follows:
For the Three Months Ended, March 31, December 31, March 31,Core Ratios1(Annualized): 2026 2025 2025 Return on average assets 0.68% 0.65% 0.62%Return on average tangible stockholders’ equity 8.56 8.21 7.00 Return on average tangible common equity 8.56 8.21 7.34 Efficiency ratio 66.76 68.19 65.81 Diluted earnings per share$0.43 $0.41 $0.35 PTPP diluted earnings per share 0.60 0.58 0.56Key developments for the quarter, compared to the linked quarter, are described below:
- Margin and Net Interest Expansion: Net interest margin increased six basis points to 2.93%, from 2.87%, and net interest income increased by $1.2 million, to $96.4 million.
- Sustained Growth: Total loans increased $91.9 million, a 3% annualized growth rate, and included commercial and industrial loan growth of $105.1 million, a 19% annualized growth rate.
- Controlled Expenses: Non-interest expense decreased by 13%, or $10.7 million, to $73.4 million, and operating expenses excluding non-core operations decreased to $69.1 million from $71.2 million.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to report strong first quarter results driven by continued loan growth, net interest margin expansion, and expense discipline. The Company remains focused on growing our business and improving profitability through margin expansion and prudent expense discipline.” Mr. Maher added, “Our announced merger agreement with Flushing Financial Corporation (“Flushing”) has recently been approved by shareholders, the New York State Department of Financial Services and the Office of the Comptroller of the Currency. It remains subject to the receipt of the requisite regulatory approval from the Board of Governors of the Federal Reserve System and other customary closing conditions. We continue to expect the merger to close in the second quarter of 2026.”
The Company’s Board of Directors previously declared its 117th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 8, 2026, to common stockholders of record on April 27, 2026.
1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude the impact of net (gain) loss on equity investments, restructuring charges, credit risk transfer execution expense, Federal Deposit Insurance Corporation (“FDIC”) special assessment (release) expense, merger-related expenses, and the income tax effect of these items, as well as loss on redemption of preferred stock (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Other Items - Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
Results of Operations
The current quarter included an additional $4.2 million of merger-related expenses for the anticipated merger with Flushing and $128,000 of restructuring charges for the discontinuation of residential loan originations.
Net Interest Income and Margin
Three months ended March 31, 2026 vs. March 31, 2025
Net interest income increased to $96.4 million, from $86.7 million, reflecting the net impact of the interest rate environment and an increase in average balances. Net interest margin increased to 2.93%, from 2.90%, which included the impact of purchase accounting accretion and prepayment fees of 0.01% and 0.03%, respectively. Net interest margin increased primarily due to the decrease in cost of funds.
Average interest-earning assets increased by $1.25 billion, primarily due to increases in commercial loans and securities. The average yield for interest-earning assets decreased to 5.10%, from 5.13%, primarily due to the repricing of assets tied to short-term rates.
The cost of average interest-bearing liabilities decreased to 2.66%, from 2.78%, primarily due to repricing of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased nine basis points to 1.97%, from 2.06%. Average interest-bearing liabilities increased by $1.19 billion, primarily due to increases in deposits and FHLB advances.
Three months ended March 31, 2026 vs. December 31, 2025
Net interest income increased by $1.2 million, to $96.4 million from $95.3 million, and net interest margin increased to 2.93%, from 2.87%, driven by a decrease in cost of funds. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.01% for both periods.
Average interest-earning assets increased by $200.5 million, primarily due to increases in commercial loans, while the yield on average interest-earning assets decreased to 5.10%, from 5.19%.
The cost of average interest-bearing liabilities decreased to 2.66%, from 2.83%, primarily due to a decrease in the cost of deposits and FHLB advances. The total cost of deposits decreased to 1.97%, from 2.13%. Average interest-bearing liabilities increased by $248.5 million, primarily due to an increase in FHLB advances.
Provision for Credit Losses
Provision for credit losses for the quarter ended March 31, 2026 was $2.7 million, as compared to $5.3 million for the corresponding prior year period, and $3.7 million in the linked quarter. The current quarter provision was primarily driven by net loan growth and an increase in criticized and classified loans, partly offset by a decrease in off-balance sheet commitments.
Net loan charge-offs were $701,000 for the quarter ended March 31, 2026, as compared to $636,000 for the corresponding prior year period and $2.0 million for the linked quarter. The prior year period included charge-offs of $720,000 related to the sale of $5.1 million of non-performing residential and consumer loans. The linked quarter included charge-offs of $1.1 million for three commercial relationships and charge-offs of $342,000 related to sales of non-performing residential and consumer loans.
Non-interest Income
Three months ended March 31, 2026 vs. March 31, 2025
Other income decreased to $6.7 million, as compared to $11.3 million. Other income was adversely impacted by non-core operations of $354,000 related to net losses on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments.
Excluding non-core operations, other income decreased by $3.9 million. The primary drivers were a decrease in fees and service charges of $1.9 million related to disposition of the title business at the beginning of the fourth quarter last year, and a decrease in a net gain on sale of loans of $886,000 due to the discontinuation of residential loan originations. In addition, the prior period included non-recurring other income of $842,000.
Three months ended March 31, 2026 vs. December 31, 2025
Other income in the linked quarter was $9.4 million and included non-core operations of $230,000 related to net gain on equity investments. Excluding non-core operations, other income decreased by $2.1 million. The primary drivers were decreases in net gain on sale of loans of $779,000 and commercial loan swap income of $774,000 due to lower activity.
Non-interest Expense
Three months ended March 31, 2026 vs. March 31, 2025
Operating expenses increased to $73.4 million, as compared to $64.3 million. Operating expenses in the current quarter were adversely impacted by non-core operations of $4.3 million, due to merger-related expenses and restructuring charges.
Excluding non-core operations, operating expenses increased by $4.8 million. The primary driver was an increase in compensation and benefits of $2.7 million, mostly due to the net impact of discontinuation of residential initiatives and commercial banking hires adjusted for annual inflationary increases. The prior year also included a $1.3 million benefit from normal incentive-related adjustments released. Additional drivers were increases in professional fees of $797,000, partly due to higher consulting fees, other operating expenses of $627,000, mostly due to credit risk transfer premium expense, and data processing expense of $405,000.
Three months ended March 31, 2026 vs. December 31, 2025
Operating expenses in the linked quarter were $84.1 million and included non-core operations of $12.9 million related to restructuring charges, merger-related expenses and credit risk transfer execution expenses. Excluding non-core operations, operating expenses decreased by $2.1 million. The primary drivers were decreases in compensation and benefits of $1.5 million, partly due to fewer working days and the discontinuation of residential loan originations, and marketing expense of $503,000.
Income Tax Expense
The provision for income taxes was $6.5 million for the quarter ended March 31, 2026, as compared to $6.8 million for the same prior year period and $3.8 million for the linked quarter. The effective tax rate was 24.2% for the quarter ended March 31, 2026, as compared to 24.1% for the same prior year period and 22.3% for the linked quarter. The effective tax rate for the linked quarter was positively impacted by higher tax credits, partially offset by higher non-deductible merger expenses.
Financial Condition
March 31, 2026 vs. December 31, 2025
Total assets decreased by $8.0 million to $14.56 billion, primarily due to a decrease in total debt securities, offset by an increase in loans. Debt securities available-for-sale decreased by $50.7 million to $1.18 billion, from $1.23 billion, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $28.7 million to $852.9 million, from $881.6 million, primarily due to principal repayments. Total loans increased by $91.9 million to $11.12 billion, from $11.03 billion, primarily due to an increase in commercial loans of $162.9 million, partly offset by a decrease in total consumer loans of $71.0 million.
Total liabilities decreased by $14.8 million to $12.89 billion, from $12.90 billion primarily related to a decrease in FHLB advances, partly offset by an increase in deposits. FHLB advances decreased by $217.0 million to $1.18 billion, from $1.40 billion driven by a shift to more favorably priced deposits. Deposits increased by $191.5 million to $11.16 billion, from $10.96 billion, primarily due to an increase in interest bearing deposits of $182.2 million. Time deposits decreased by $81.6 million to $2.39 billion, from $2.47 billion, representing 21.4% and 22.5% of total deposits, respectively. Time deposits included a decrease in brokered time deposits of $121.9 million, partly offset by an increase in retail time deposits of $40.6 million. The loan-to-deposit ratio was 99.7%, as compared to 100.6%.
Other liabilities decreased by $7.0 million to $202.3 million, from $209.3 million, mostly due to payment of annual incentive accruals, partly offset by collateral received from counterparties.
Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2026, including the Company’s estimated common equity tier one capital ratio of 10.7%.
Total stockholders’ equity increased to $1.67 billion, as compared to $1.66 billion, primarily due to net income, partially offset by capital returns comprised of dividends and share repurchases. Additionally, accumulated other comprehensive loss increased by $2.4 million primarily due to decreases in the fair market value of available-for-sale debt securities, net of tax.
During the quarter ended March 31, 2026, the Company repurchased 177,450 shares totaling $3.4 million representing a weighted average cost of $19.18, which represented repurchases of exercised options and vesting of awards from employees outside of the authorized share repurchase program. As of March 31, 2026, the Company had 3,226,284 shares available for repurchase under the authorized repurchase programs.
The Company’s tangible common equity2 increased by $7.7 million to $1.14 billion. The Company’s stockholders’ equity to assets ratio was 11.47% at March 31, 2026, and tangible common equity to tangible assets ratio increased by 6 basis points during the year to 8.15%, primarily due to the drivers described above.
Book value per common share increased to $28.98, as compared to $28.97. Tangible book value per common share2 increased to $19.86, as compared to $19.79.
2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Other Items - Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
Asset Quality
March 31, 2026 vs. December 31, 2025
Non-performing loans increased to $34.6 million, from $27.8 million, primarily related to one commercial loan, and represented 0.31% and 0.25% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 248.60%, as compared to 301.27%. The level of 30 to 89 days delinquent loans increased to $55.9 million, from $47.8 million, primarily related to commercial loans. Criticized and classified loans and other real estate owned increased to $180.7 million, from $122.1 million, primarily due to one accruing commercial and industrial relationship of $50.4 million. The Company’s allowance for loan credit losses was 0.77% of total loans, as compared to 0.76%. Refer to “Provision for Credit Losses” section for further discussion.
The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $28.7 million, from $22.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 299.64%, as compared to 374.46%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $47.1 million, from $44.7 million.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, April 24, 2026 at 11:00 a.m. Eastern Time. The direct dial number for the call is (888) 596-4144, using the access code 3895064. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (800) 770-2030 using the access code 3895064, from one hour after the end of the call until May 1, 2026. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $14.6 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas from Massachusetts through Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.
Forward-Looking Statements
In addition to historical information, this press release contains certain forward-looking statements within the meaning of the federal securities laws, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. Forward-looking statements may be identified by the use of the words such as “ estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “strategy,” “future,” “opportunity,” “may,” “could,” “target,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. These statements are based on various assumptions, whether or not identified in this document, and on the current expectations of the Company’s management and are not predictions of actual performance, and, as a result, are subject to risks and uncertainties. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict, may differ from assumptions and many are beyond the control of the Company. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may include statements with respect to the proposed transaction between the Company and Flushing and the proposed investment by Warburg Pincus LLC (“Warburg”) in the Company’s equity securities.
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 effects of a potential future federal government shutdown, 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, our ability to enter into new markets and capitalize on growth opportunities, the adequacy of and changes in the economic assumptions and methodology for computing the allowance for credit losses, availability of capital, competition, our ability to maintain and increase market share and control expenses, changes in investor sentiment and consumer spending, borrowing and savings habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks and fraud, 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.
Additional forward-looking statements related to the proposed transaction with Flushing and the proposed investment by Warburg include, but are not limited to: (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the failure to satisfy the conditions to the consummation of the proposed transaction, including obtaining the necessary regulatory approvals (and the risk that such regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement between the Company and Flushing; (iv) the inability to obtain alternative capital in the event it becomes necessary to complete the proposed transaction; (v) the effect of the announcement or pendency of the proposed transaction on Company’s and Flushing’s business relationships, operating results and business generally; (vi) risks that the proposed transaction disrupts current plans and operations of the Company and Flushing; (vii) potential difficulties in retaining Company and Flushing customers and employees as a result of the proposed transaction; (viii) potential litigation relating to the proposed transaction that could be instituted against the Company, Flushing or their respective directors and officers, including the effects of any outcomes related thereto; (ix) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected expenses, factors or events; (x) the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and Flushing do business; and (xi) the dilution caused by the Company’s issuance of additional shares of its capital stock in connection with the transaction. The foregoing list of factors is not exhaustive. All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above.
These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
March 31, December 31, March 31, 2026 2025 2025 (Unaudited) (Unaudited)Assets Cash and due from banks $136,981 $135,130 $163,721Debt securities available-for-sale, at estimated fair value 1,181,087 1,231,827 746,168Debt securities held-to-maturity, net of allowance for securities credit losses of $754 at March 31, 2026, $811 at December 31, 2025, and $898 at March 31, 2025 (estimated fair value of $793,409 at March 31, 2026, $825,790 at December 31, 2025, and $926,075 at March 31, 2025) 852,917 881,568 1,005,476Equity investments 88,239 91,882 87,365Restricted equity investments, at cost 119,503 129,329 102,172Loans receivable, net of allowance for loan credit losses of $86,110 at March 31, 2026, $83,726 at December 31, 2025, and $78,798 at March 31, 2025 11,059,275 10,970,666 10,058,072Loans held-for-sale — 5,768 9,698Interest and dividends receivable 49,588 49,010 44,843Other real estate owned 10,393 10,266 1,917Premises and equipment, net 112,066 112,743 114,588Bank owned life insurance 271,650 270,301 269,398Goodwill 517,481 517,481 523,308Intangibles 8,198 9,046 11,740Other assets 148,958 149,300 170,812Total assets $14,556,336 $14,564,317 $13,309,278Liabilities and Stockholders’ Equity Deposits $11,155,916 $10,964,405 $10,177,023Federal Home Loan Bank advances 1,180,179 1,397,179 891,021Securities sold under agreements to repurchase with customers 67,249 54,434 65,132Other borrowings 255,518 255,233 197,808Advances by borrowers for taxes and insurance 25,851 21,245 28,789Other liabilities 202,255 209,271 240,388Total liabilities 12,886,968 12,901,767 11,600,161Stockholders’ equity: OceanFirst Financial Corp. stockholders’ equity 1,669,368 1,662,550 1,708,322Non-controlling interest — — 795Total stockholders’ equity 1,669,368 1,662,550 1,709,117Total liabilities and stockholders’ equity $14,556,336 $14,564,317 $13,309,278
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended, March 31, December 31, March 31, 2026 2025 2025 |------------------- (Unaudited) -------------------|Interest income: Loans $145,324 $146,550 $133,019 Debt securities 19,810 21,681 17,270 Equity investments and other 3,157 3,501 3,414 Total interest income 168,291 171,732 153,703 Interest expense: Deposits 53,695 59,615 51,046 Borrowed funds 18,149 16,839 16,005 Total interest expense 71,844 76,454 67,051 Net interest income 96,447 95,278 86,652 Provision for credit losses 2,738 3,700 5,340 Net interest income after provision for credit losses 93,709 91,578 81,312 Other income (loss): Bankcard services revenue 1,629 1,789 1,463 Trust and asset management revenue 433 350 406 Fees and service charges 2,813 2,994 4,712 Net (loss) gain on sales of loans (28) 751 858 Net (loss) gain on equity investments (354) 230 205 Net loss from other real estate operations (164) (10) (16)Income from bank owned life insurance 1,874 2,127 1,852 Commercial loan swap income 345 1,119 620 Other 200 61 1,153 Total other income 6,748 9,411 11,253 Operating expenses: Compensation and employee benefits 39,484 40,984 36,740 Occupancy 5,832 5,825 5,497 Equipment 921 876 921 Marketing 963 1,466 1,108 Federal deposit insurance and regulatory assessments 3,215 3,102 2,983 Data processing 7,052 7,104 6,647 Check card processing 1,098 1,086 1,170 Professional fees 3,222 4,862 2,425 Amortization of intangibles 848 888 940 Merger-related expenses 4,150 4,253 — Restructuring charges 128 7,379 — Other operating expenses 6,490 6,317 5,863 Total operating expenses 73,403 84,142 64,294 Income before provision for income taxes 27,054 16,847 28,271 Provision for income taxes 6,548 3,754 6,808 Net income 20,506 13,093 21,463 Net loss attributable to non-controlling interest — — (46)Net income attributable to OceanFirst Financial Corp. 20,506 13,093 21,509 Dividends on preferred shares — — 1,004 Net income available to common stockholders $20,506 $13,093 $20,505 Basic earnings per share $0.36 $0.23 $0.35 Diluted earnings per share $0.36 $0.23 $0.35 Average basic shares outstanding 57,043 56,942 58,102 Average diluted shares outstanding 57,048 56,954 58,111
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLE At March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Commercial: Commercial real estate - investor $5,478,832 $5,420,989 $5,211,220 $5,068,125 $5,200,137 Commercial and industrial: Commercial and industrial - real estate 1,016,912 986,431 997,122 914,406 896,647 Commercial and industrial - non-real estate 1,302,128 1,227,556 998,860 862,504 748,575 Total commercial and industrial 2,319,040 2,213,987 1,995,982 1,776,910 1,645,222 Total commercial 7,797,872 7,634,976 7,207,202 6,845,035 6,845,359 Consumer: Residential real estate 3,128,023 3,194,264 3,135,200 3,119,232 3,053,318 Home equity loans and lines and other consumer ("other consumer") 198,048 202,763 215,581 220,820 226,633 Total consumer 3,326,071 3,397,027 3,350,781 3,340,052 3,279,951 Total loans 11,123,943 11,032,003 10,557,983 10,185,087 10,125,310 Deferred origination costs (fees), net 21,442 22,389 13,105 13,960 11,560 Allowance for loan credit losses (86,110) (83,726) (81,236) (79,266) (78,798)Loans receivable, net $11,059,275 $10,970,666 $10,489,852 $10,119,781 $10,058,072 Mortgage loans serviced for others $344,316 $365,431 $340,740 $288,211 $222,963 At March 31, 2026 Average Yield Loan pipeline(1): Commercial6.70% $417,356 $464,602 $710,933 $790,768 $375,622 Residential real estate(2)6.07 461 9,457 136,797 146,921 116,121 Other consumer(2)— — — 16,184 17,110 12,681 Total6.70% $417,817 $474,059 $863,914 $954,799 $504,424
ASSET QUALITY
(dollars in thousands)
ASSET QUALITY(1) (2)
March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Non-performing loans: Commercial real estate - investor$18,970 $13,636 $23,570 $20,457 $23,595 Commercial and industrial: Commercial and industrial - real estate 5,541 4,813 7,469 4,499 4,690 Commercial and industrial - non-real estate 228 640 394 311 22 Total commercial and industrial 5,769 5,453 7,863 4,810 4,712 Residential real estate 7,011 6,200 7,334 5,318 5,709 Other consumer 2,888 2,502 2,496 2,926 2,954 Total non-performing loans(2)$34,638 $27,791 $41,263 $33,511 $36,970 Other real estate owned 10,393 10,266 7,498 7,680 1,917 Total non-performing assets$45,031 $38,057 $48,761 $41,191 $38,887 Delinquent loans 30 to 89 days$55,876 $47,808 $19,817 $14,740 $46,246 Modifications to borrowers experiencing financial difficulty Non-performing (included in total non-performing loans above)$5,460 $956 $7,693 $8,129 $8,307 Performing 15,083 23,898 23,952 31,986 27,592 Total modifications to borrowers experiencing financial difficulty$20,543 $24,854 $31,645 $40,115 $35,899 Allowance for loan credit losses$86,110 $83,726 $81,236 $79,266 $78,798 Allowance for unfunded commitments 3,738 4,028 4,636 3,289 2,846 Allowance for loan credit losses as a percent of total loans receivable(3) 0.77% 0.76% 0.77% 0.78% 0.78%Allowance for loan credit losses as a percent of total non-performing loans(3) 248.60 301.27 196.87 236.54 213.14 Non-performing loans as a percent of total loans receivable 0.31 0.25 0.39 0.33 0.37 Non-performing assets as a percent of total assets 0.31 0.26 0.34 0.31 0.29 Supplemental PCD and non-performing loans PCD loans, net of allowance for loan credit losses$14,604 $14,968 $19,003 $20,934 $21,737 Non-performing PCD loans 5,900 5,432 5,677 6,800 7,724 Delinquent PCD and non-performing loans 30 to 89 days 8,794 3,103 2,987 2,590 10,489 PCD modifications to borrowers experiencing financial difficulty(2) 16 18 20 20 22 Asset quality, excluding PCD loans Non-performing loans(2) 28,738 22,359 35,586 26,711 29,246 Non-performing assets 39,131 32,625 43,084 34,391 31,163 Delinquent loans 30 to 89 days (excludes non-performing loans) 47,082 44,705 16,830 12,150 35,757 Modifications to borrowers experiencing financial difficulty(2) 20,527 24,836 31,625 40,095 35,877 Allowance for loan credit losses as a percent of total non-performing loans(3) 299.64% 374.46% 228.28% 296.75% 269.43%Non-performing loans as a percent of total loans receivable 0.26 0.20 0.34 0.26 0.29 Non-performing assets as a percent of total assets 0.27 0.22 0.30 0.26 0.23
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025(dollars in thousands)Average
Balance Interest Average
Yield/
Cost(1) Average
Balance Interest Average
Yield/
Cost(1) Average
Balance Interest Average
Yield/
Cost(1)Assets: Interest-earning assets: Interest-earning deposits and short-term investments$83,036 $662 3.23% $93,474 $988 4.19% $95,439 $983 4.18%Securities(2) 2,282,663 22,305 3.96 2,339,646 24,194 4.10 2,003,206 19,701 3.99 Loans receivable, net(3) Commercial 7,687,461 109,097 5.76 7,382,168 109,795 5.90 6,781,005 98,260 5.88 Residential real estate 3,167,262 33,141 4.19 3,194,529 33,377 4.18 3,065,679 31,270 4.08 Other consumer 199,318 3,086 6.28 211,650 3,378 6.33 228,553 3,489 6.19 Allowance for loan credit losses, net of deferred loan costs and fees (61,878) — — (64,107) — — (61,854) — — Loans receivable, net 10,992,163 145,324 5.34 10,724,240 146,550 5.43 10,013,383 133,019 5.37 Total interest-earning assets 13,357,862 168,291 5.10 13,157,360 171,732 5.19 12,112,028 153,703 5.13 Non-interest-earning assets 1,192,836 1,180,416 1,199,865 Total assets$14,550,698 $14,337,776 $13,311,893 Liabilities and Stockholders’ Equity: Interest-bearing liabilities: Interest-bearing checking$4,509,841 22,820 2.05% $4,464,604 25,575 2.27% $4,135,952 21,433 2.10%Money market 1,472,989 8,808 2.43 1,643,192 11,500 2.78 1,322,003 9,353 2.87 Savings 988,964 1,306 0.54 989,003 1,492 0.60 1,058,015 1,785 0.68 Time deposits 2,372,824 20,761 3.55 2,270,671 21,048 3.68 1,916,109 18,475 3.91 Total 9,344,618 53,695 2.33 9,367,470 59,615 2.52 8,432,079 51,046 2.46 FHLB Advances 1,261,984 12,884 4.14 984,934 10,912 4.40 996,293 11,359 4.62 Securities sold under agreements to repurchase 59,806 384 2.60 65,891 427 2.57 64,314 428 2.70 Other borrowings 299,919 4,881 6.60 299,565 5,500 7.28 283,150 4,218 6.04 Total borrowings 1,621,709 18,149 4.54 1,350,390 16,839 4.95 1,343,757 16,005 4.83 Total interest-bearing liabilities 10,966,327 71,844 2.66 10,717,860 76,454 2.83 9,775,836 67,051 2.78 Non-interest-bearing deposits 1,731,789 1,755,211 1,597,972 Non-interest-bearing liabilities 174,100 199,504 222,951 Total liabilities 12,872,216 12,672,575 11,596,759 Stockholders’ equity 1,678,482 1,665,201 1,715,134 Total liabilities and stockholders’ equity$14,550,698 $14,337,776 $13,311,893 Net interest income $96,447 $95,278 $86,652 Net interest rate spread(4) 2.44% 2.36% 2.35%Net interest margin(5) 2.93% 2.87% 2.90%Total cost of deposits (including non-interest-bearing deposits) 1.97% 2.13% 2.06%
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025Selected Financial Condition Data: Total assets $14,556,336 $14,564,317 $14,324,664 $13,327,847 $13,309,278Debt securities available-for-sale, at estimated fair value 1,181,087 1,231,827 1,261,580 735,561 746,168Debt securities held-to-maturity, net of allowance for securities credit losses 852,917 881,568 919,734 968,969 1,005,476Equity investments 88,239 91,882 90,731 87,808 87,365Restricted equity investments, at cost 119,503 129,329 142,398 106,538 102,172Loans receivable, net of allowance for loan credit losses 11,059,275 10,970,666 10,489,852 10,119,781 10,058,072Deposits 11,155,916 10,964,405 10,435,994 10,232,442 10,177,023Federal Home Loan Bank advances 1,180,179 1,397,179 1,705,585 938,687 891,021Securities sold under agreements to repurchase from customers and other borrowings 322,767 309,667 263,007 259,509 262,940Total stockholders’ equity 1,669,368 1,662,550 1,653,427 1,643,680 1,709,117
OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)
NON-GAAP RECONCILIATION
For the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Core Earnings: Net income available to common stockholders(GAAP) $20,506 $13,093 $17,330 $16,200 $20,505 Adjustments to exclude the impact of non-recurring and non-core items: Net loss (gain) on equity investments 354 (230) 7 (488) (205)Restructuring charges 128 7,379 4,147 — — Credit risk transfer execution expense — 1,283 — — — FDIC special assessment release — — (210) — — Merger-related expenses 4,150 4,253 — — — Income tax (benefit) expense on items (806) (2,254) (926) 115 49 Loss on redemption of preferred stock — — — 1,842 — Core earnings(Non-GAAP) $24,332 $23,524 $20,348 $17,669 $20,349 Income tax expense $6,548 $3,754 $5,156 $5,771 $6,808 Provision for credit losses 2,738 3,700 4,092 3,039 5,340 Less: income tax (benefit) expense on non-core items (806) (2,254) (926) 115 49 Core earnings PTPP(Non-GAAP) $34,424 $33,232 $30,522 $26,364 $32,448 Core earnings diluted earnings per share $0.43 $0.41 $0.36 $0.31 $0.35 Core earnings PTPP diluted earnings per share $0.60 $0.58 $0.54 $0.46 $0.56 Core Ratios (Annualized): Return on average assets 0.68% 0.65% 0.60% 0.53% 0.62%Return on average tangible stockholders’ equity 8.56 8.21 7.19 6.17 7.00 Return on average tangible common equity 8.56 8.21 7.19 6.17 7.34 Efficiency ratio 66.76 68.19 70.30 72.28 65.81Company Contact:
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: [email protected]