OceanFirst Financial Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income available to common stockholders was $16.5 million ($0.17 per diluted share) for the three months ended September 30, 2026, compared to $17.3 million ($0.30 per diluted share) in the prior year period and a net loss of $3.0 million ($0.04 per diluted share) in the linked quarter.
• For the nine months ended September 30, 2026, net income available to common stockholders was $33.9 million ($0.45 per diluted share), compared to $54.0 million ($0.94 per diluted share) in the prior year period.
• Net interest income increased to $172.1 million for the quarter, up from $90.7 million in the prior year period, and $120.7 million in the linked quarter.
• Net interest margin was 3.18% for the quarter, up from 2.91% in the prior year period and 3.05% in the linked quarter.
• Provision for credit losses was $4.3 million for the quarter, compared to $4.1 million in the prior year period and $4.0 million in the linked quarter.
• Operating expenses were $151.4 million for the quarter, including $37.1 million of non-recurring merger-related expenses, compared to $76.3 million in the prior year period.
• Core earnings were $46.9 million ($0.48 per diluted share) for the quarter, up from $20.3 million ($0.36 per diluted share) in the prior year period.
• Core earnings pre-tax-pre-provision (PTPP) were $70.8 million ($0.72 per diluted share) for the quarter, up from $30.5 million ($0.54 per diluted share) in the prior year period.
• Return on average assets was 0.28% for the quarter, compared to 0.51% in the prior year period.
• Return on average tangible common equity was 3.63% for the quarter, compared to 6.13% in the prior year period.
• Efficiency ratio was 81.76% for the quarter, compared to 74.13% in the prior year period.
• Total assets increased to $23.37 billion as of September 30, 2026, from $14.56 billion as of December 31, 2025.
• Total stockholders' equity was $2.40 billion as of September 30, 2026, compared to $1.66 billion as of December 31, 2025.
• Book value per common share decreased to $24.32, compared to $28.97.
• Tangible book value per common share decreased to $18.08, compared to $19.79.

Guidance and Future Outlook:

• The Company expects to realize anticipated cost savings beginning in the fourth quarter of 2026 following the completion of core system conversion and integration activities.
• The Company expects to resume excess capital accretion in the fourth quarter of 2026.
• Management is focused on leveraging the scale and capabilities of the combined company to enhance the customer experience and support long-term, profitable growth.

Business Segments and Product Lines:

• Total loans increased by $215.7 million (5% annualized growth rate) during the quarter, driven by $325.0 million of commercial loan growth.
• Commercial loan originations increased 15% to $734.8 million from $641.5 million in the linked quarter.
• Total deposits increased by $319.3 million to $18.1 billion from $17.8 billion.
• The Company completed its core system conversion and integration activities in September, enabling the elimination of redundant back-office operating expenses.
• The Company launched its first advertising campaigns in the New York market following the integration of Flushing clients.
• The Company discontinued residential loan originations and the disposition of the title business.

Market and Competitive Landscape:

• The Company completed the acquisition of Flushing Financial Corporation and Flushing Bank on June 1, 2026, adding $8.69 billion to total assets and $7.11 billion to deposits.
• The integration of Flushing clients was executed smoothly, allowing for a unified operating platform under the OceanFirst Bank brand.
• The Company serves business and retail customers throughout New Jersey, New York, Long Island, and major metropolitan areas from Massachusetts through Virginia.

Risks and Challenges:

• Non-performing loans increased to $140.7 million from $27.8 million, primarily due to $84.6 million of non-performing loans acquired from Flushing.
• Criticized and classified loans increased to $529.6 million from $122.1 million, largely due to Flushing loans that were re-risked at acquisition.
• The Company held $727.1 million of purchased with credit deterioration (PCD) loans from the Flushing acquisition.
• Operating expenses were significantly impacted by non-recurring merger-related expenses of $37.1 million in the current quarter.
• The effective tax rate was adversely impacted by non-deductible merger-related expenses.
• Net loan charge-offs were $1.5 million for the quarter, compared to $617,000 in the prior year period.

Management Commentary and Tone:

• CEO Christopher D. Maher stated the Company is pleased with increases in margin and profitability and the timely completion of the Flushing integration.
• Management noted the integration allowed for improved operational efficiencies and the launch of new advertising campaigns.
• The tone reflects confidence in the combined company's ability to support long-term, profitable growth.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on November 20, 2026, to stockholders of record on November 9, 2026.
• The Company completed a $225 million capital raise consisting of approximately 9.6 million shares of common stock, 1.8 million shares of NVCE stock, and warrants to purchase 11.4 million shares of NVCE stock.
• During the nine months ended September 30, 2026, the Company repurchased 415,348 shares of common stock related to exercised options and vesting of employee awards at a weighted average cost of $18.76.
• As of September 30, 2026, the Company had 3,226,284 shares available for repurchase under authorized programs.
• The Company's common equity tier one capital ratio was 10.6% at September 30, 2026.
• The quarter included $5.5 million of non-recurring interest income related to payoffs of a non-performing investment and loan acquired from Flushing.
• The quarter included $37.1 million of non-recurring merger-related expenses for the Flushing acquisition, representing $29.4 million net of tax.