OceanFirst Financial (OCFC) investor relations material

Executive summary

• Q2 2025 core EPS was $0.31 and GAAP EPS was $0.28, with net income of $16.2M, reflecting an investment quarter with increased expenses from hiring and expansion.

• Total loans grew by $59.8M (2% annualized), with commercial and industrial loans up $132M; commercial loan pipeline reached a record $791M, up 111% sequentially.

• Premier Banking launched in April, adding 200 new relationships and $115M in deposits at a 2.71% cost.

• 1,003,550 shares repurchased and all preferred stock redeemed for $57M during the quarter; board authorized repurchase of up to 3M additional shares.

• Tangible book value per share increased to $19.34 sequentially; book value per share at $28.64.

Financial highlights

• Net interest income reached $88M in Q2 2025, up from $82.3M year-over-year; net interest margin improved to 2.91% from 2.71%.

• Total deposits increased $166.1M to $10.23B, driven by time deposits and brokered deposits.

• Operating expenses rose to $71.5M in Q2, in line with guidance, including $1.6M in nonrecurring recruiting fees.

• Provision for credit losses was $3.0M for Q2, with net loan charge-offs of $2.2M.

• Book value per share at period end was $28.64, down from $29.27 sequentially.

Outlook and guidance

• Q3 2025 loans expected to grow 2–3% sequentially, with deposit growth to match; net interest income and margin projected to remain stable or slightly increase.

• Operating expenses anticipated at $71–72M per quarter, reflecting a full quarter of new hires.

• CET1 ratio expected to remain robust above 10%, supporting growth and share repurchases.

• Management expects continued momentum in commercial banking, supported by a record commercial loan pipeline and new deposit relationships.

• Effective tax rate expected to remain in the 23%–25% range.