OceanFirst Financial (OCFC) investor relations material

Executive summary

• Completed the acquisition of Flushing Financial Corporation on June 1, 2026, adding $8.7B in assets, $6.19B in loans, and $7.44B in deposits, expanding the franchise to $23.27B in assets and strengthening the New York market presence.

• Reported a GAAP net loss of $3.0M ($0.04 per share) for Q2 2026, primarily due to $42.8M in merger-related expenses; core EPS was $0.43, up 39% year-over-year.

• Integration of Flushing is on track for completion and rebranding by end of Q3 2026, with cost savings and operating synergies expected post-systems conversion.

• Sold $1.31B of multifamily loans from Flushing, reducing CRE and rent-regulated exposures and increasing liquidity.

• Raised $225M in equity from Warburg Pincus affiliates, issuing common and NVCE shares and warrants.

Financial highlights

• Net interest income for Q2 2026 was $120.7M, up 25% sequentially and 38% year-over-year, with net interest margin expanding to 3.05%.

• Pre-tax, pre-provision core earnings rose 29% sequentially to $44.5M; core ROAA was 0.71% and core ROTCE was 8.92%.

• Deposits increased to $17.76B, up $6.8B, primarily from Flushing.

• Allowance for loan credit losses increased to 1.29% of total loans, reflecting acquired portfolios.

• Quarterly cash dividend of $0.20 per share approved, marking 118 consecutive quarters.

Outlook and guidance

• Loans and deposits expected to grow 1%-2% from June 30 levels by year-end, driven by C&I growth.

• Net interest margin guidance: 3.07%-3.14% for Q3 and Q4 2026, assuming no rate changes.

• Operating expenses projected to decline to $120M-$125M in Q3 and $110M-$115M in Q4 as cost savings are realized.

• Full integration and rebranding of Flushing branches expected in Q3 2026, with anticipated efficiency improvements.

• 2027 profitability targets and margin guidance remain unchanged post-merger.