OceanFirst Financial (OCFC) investor relations material

Executive summary

• First full quarter including Flushing; September core conversion and branch rebranding completed, with integration substantially complete and savings expected from Q4 2026.

• Core earnings were $46.9 million, or $0.48 per diluted share; GAAP net income available to common stockholders was $16.5 million, or $0.17 per diluted share.

• Net interest income was $172.1 million, including $5.5 million of non-recurring acquired-asset payoff income.

Financial highlights

• Net interest income rose 43% QoQ and 90% YoY to $172.1 million; net interest margin reached 3.18%, including one-time recovery benefits.

• GAAP operating expenses were $151.4 million, including $37.1 million of merger costs; core operating expenses were $114 million.

• Core PTPP was $70.8 million, or $0.72 per diluted share; provision for credit losses was $4.3 million and net charge-offs were $1.5 million.

• Core non-interest expense rose $27.2 million, or 31% QoQ, primarily reflecting a full quarter of Flushing operations, partly offset by initial savings.

Outlook and guidance

• Q4 loans and deposits are expected to grow 1%-2%; normalized NIM is expected to remain stable to modestly higher, subject to rates and loan swap activity.

• Core operating expenses are expected at $110 million in Q4-26 and $105 million in Q1-27; remaining cost savings are expected in October.

• CET1 is expected to remain above 10.5%; capital accretion is expected to resume in Q4-26.

• 2027 profitability targets remain unchanged, including 1% ROA and an expense-to-assets target near 1.75%; full-year guidance was planned for January.