What changed in this filing

/stocks — the workspaceLOADING

Item 4. Controls and Procedures

2025-05-02 compared with 2024-10-31 · 189 added, 265 removed, 772 unchanged (37% of the section changed)

5 unchanged sentences

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

There were no changes in the Company’s internal control over financial reporting during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

OceanFirst Financial Corp.

1 unchanged sentence

(dollars in thousands, except per share amounts)

September 30, December 31,

March 31, December 31,

Cash and due from banks $ 163,721 $ 123,615

Debt securities available-for-sale, at estimated fair value 746,168 827,500

Debt securities held-to-maturity, net of allowance for securities credit losses of $ 902 at September 30, 2024 and $ 1,133 at December 31, 2023 (estimated fair value of $ 1,007,781 at September 30, 2024 and $ 1,068,438 at December 31, 2023)

Debt securities held-to-maturity, net of allowance for securities credit losses of $ 898 at March 31, 2025 and $ 967 at December 31, 2024 (estimated fair value of $ 926,075 at March 31, 2025 and $ 952,917 at December 31, 2024)

1,005,476 1,045,875

1 unchanged sentence

Restricted equity investments, at cost 102,172 108,634

Loans receivable, net of allowance for loan credit losses of $ 69,066 at September 30, 2024 and $ 67,137 at December 31, 2023

Loans receivable, net of allowance for loan credit losses of $ 78,798 at March 31, 2025 and $ 73,607 at December 31, 2024

10,058,072 10,055,429

1 unchanged sentence

Interest and dividends receivable 44,843 45,914

Other real estate owned 1,917 1,811

Premises and equipment, net 114,588 115,256

Bank owned life insurance 269,398 270,208

Assets held for sale — 28

Goodwill 523,308 523,308

Core deposit intangible 7,056 9,513

Intangibles 11,740 12,680

Other assets 170,812 185,702

9 unchanged sentences

Stockholders’ equity:

Preferred stock, $ 0.01 par value, $ 1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at both September 30, 2024 and December 31, 2023

Common stock, $ 0.01 par value, 150,000,000 shares authorized, 62,515,415 and 62,182,767 shares issued at September 30, 2024 and December 31, 2023, respectively;

and 58,397,094 and 59,447,684 shares outstanding at September 30, 2024 and December 31, 2023, respectively

Preferred stock, $ 0.01 par value, $ 1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at both March 31, 2025 and December 31, 2024

Common stock, $ 0.01 par value, 150,000,000 shares authorized, 62,900,241 and 62,182,767 shares issued at March 31, 2025 and December 31, 2024, respectively;

and 58,383,525 and 58,554,871 shares outstanding at March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital 1,170,179 1,168,321

2 unchanged sentences

Unallocated common stock held by Employee Stock Ownership Plan ("ESOP") ( 2,232 ) ( 2,542 )

Treasury stock, 4,118,321 and 2,735,083 shares at September 30, 2024 and December 31, 2023, respectively

Treasury stock, 4,516,716 and 4,118,321 shares at March 31, 2025 and December 31, 2024, respectively

( 97,545 ) ( 90,617 )

8 unchanged sentences

(in thousands, except per share amounts)

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

(Unaudited) (Unaudited)

For the Three Months Ended March 31,

Interest income:

15 unchanged sentences

Net gain on sales of loans 858 357

Net gain (loss) on equity investments 1,420 1,452 4,230 ( 5,908 )

Net gain on equity investments 205 1,923

Net loss from other real estate operations ( 16 ) —

Income from bank owned life insurance 1,852 1,862

11 unchanged sentences

Professional fees 2,425 2,732

Amortization of core deposit intangible 803 987 2,457 3,008

Branch consolidation expense, net — — — 70

Merger related expenses 1,669 — 1,669 22

Amortization of intangibles 940 844

Other operating expense 5,863 4,877

3 unchanged sentences

Net income 21,463 28,610

Net income attributable to non-controlling interest 70 ( 135 ) 72 ( 34 )

Net loss attributable to non-controlling interest ( 46 ) ( 57 )

Net income attributable to OceanFirst Financial Corp.

10 unchanged sentences

(in thousands)

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

(Unaudited) (Unaudited)

For the Three Months Ended March 31,

Net income $ 21,463 $ 28,610

Other comprehensive income:

Net unrealized gain on debt securities (net of tax expense of $ 1,225 and $ 2,569 in 2024 and $ 572 and $ 2,430 in 2023, respectively)

3,847 1,797 8,066 7,626

Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $ 43 and $ 125 in 2024 and $ 66 and $ 176 in 2023, respectively)

62 116 180 277

Unrealized gain (loss) on derivative hedges (net of tax expense of $ 267 and tax benefit of $ 133 in 2024 and tax benefit of $ 198 and $ 573 in 2023, respectively)

837 ( 622 ) ( 418 ) ( 1,798 )

Reclassification adjustment for losses included in net income (net of tax expense of $ 80 and $ 270 in 2024 and $ 78 and $ 340 in 2023, respectively)

254 246 849 1,066

Net unrealized gain on debt securities (net of tax expense of $ 788 in 2025 and $ 634 in 2024)

Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $ 44 in 2025 and $ 42 in 2024)

Unrealized loss on derivative hedges (net of tax benefit of $ 302 in 2024)

Reclassification adjustment for losses included in net income (net of tax expense of $ 20 in 2025 and $ 109 in 2024)

Total other comprehensive income, net of tax 2,601 1,447

Total comprehensive income 24,064 30,057

comprehensive income (loss) attributable to non-controlling interest 70 ( 135 ) 72 ( 34 )

comprehensive loss attributable to non-controlling interest ( 46 ) ( 57 )

Comprehensive income attributable to OceanFirst Financial Corp.

6 unchanged sentences

(dollars in thousands, except per share amounts)

For the Three Months Ended September 30, 2024 and 2023

For the Three Months Ended March 31, 2025 and 2024

Stock Additional

5 unchanged sentences

Stock Non-Controlling Interest Total

Balance at June 30, 2023 $ 1 $ 613 $ 1,159,394 $ 569,867 $ ( 30,348 ) $ ( 4,986 ) $ ( 69,106 ) $ 848 $ 1,626,283

Balance at December 31, 2023 $ 1 $ 613 $ 1,161,755 $ 592,542 $ ( 20,862 ) $ ( 3,780 ) $ ( 69,106 ) $ 782 $ 1,661,945

Net income (loss) — — — 28,667 — — — ( 57 ) 28,610

4 unchanged sentences

— — — ( 11,850 ) — — — — ( 11,850 )

Preferred stock dividend — — — ( 1,004 ) — — — — ( 1,004 )

Balance at September 30, 2023 $ 1 $ 613 $ 1,160,869 $ 577,708 $ ( 28,811 ) $ ( 4,383 ) $ ( 69,106 ) $ 713 $ 1,637,604

Balance at June 30, 2024 $ 1 $ 613 $ 1,164,813 $ 620,021 $ ( 17,185 ) $ ( 3,161 ) $ ( 89,217 ) $ 784 $ 1,676,669

Net income — — — 25,116 — — — 70 25,186

Other comprehensive income, net of tax — — — — 5,000 — — — 5,000

Stock compensation — — 1,383 — — — — — 1,383

Allocation of ESOP stock — — ( 27 ) — — 309 — — 282

Cash dividend $ 0.20 per share

— — — ( 11,657 ) — — — — ( 11,657 )

Exercise of stock options — — 48 — — — — — 48

Repurchase of 87,324 shares of common stock

Repurchase 957,827 shares of common stock

— — 29 — — — ( 15,148 ) — ( 15,119 )

Preferred stock dividend — — — ( 1,004 ) — — — — ( 1,004 )

Balance at September 30, 2024 $ 1 $ 613 $ 1,166,218 $ 632,476 $ ( 12,185 ) $ ( 2,852 ) $ ( 90,617 ) $ 854 $ 1,694,508

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands, except per share amounts)

For the Nine Months Ended September 30, 2024 and 2023

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

(Loss) Income Employee

Plan Treasury

Stock Non-Controlling Interest Total

Balance at March 31, 2024 $ 1 $ 613 $ 1,163,282 $ 608,355 $ ( 19,415 ) $ ( 3,470 ) $ ( 84,254 ) $ 725 $ 1,665,837

Balance at December 31, 2024 $ 1 $ 613 $ 1,168,321 $ 641,727 $ ( 15,853 ) $ ( 2,542 ) $ ( 90,617 ) $ 1,107 $ 1,702,757

6 unchanged sentences

Exercise of stock options — — 119 — — — — — 119

Preferred stock dividend — — — ( 3,012 ) — — — — ( 3,012 )

Distributions to non-controlling interest — — — — — — — ( 55 ) ( 55 )

Balance at September 30, 2023 $ 1 $ 613 $ 1,160,869 $ 577,708 $ ( 28,811 ) $ ( 4,383 ) $ ( 69,106 ) $ 713 $ 1,637,604

Balance at December 31, 2023 $ 1 $ 613 $ 1,161,755 $ 592,542 $ ( 20,862 ) $ ( 3,780 ) $ ( 69,106 ) $ 782 $ 1,661,945

Net income — — — 78,156 — — — 72 78,228

Other comprehensive income, net of tax — — — — 8,677 — — — 8,677

Stock compensation — — 4,515 — — — — — 4,515

Allocation of ESOP stock — — ( 130 ) — — 928 — — 798

Cash dividend $ 0.60 per share

— — — ( 35,210 ) — — — — ( 35,210 )

Exercise of stock options — — 48 — — — — — 48

Repurchase 1,383,238 shares of common stock

Repurchase of 398,395 shares of common stock

— — 31 — — — ( 6,928 ) — ( 6,897 )

Preferred stock dividend — — — ( 1,004 ) — — — — ( 1,004 )

Balance at September 30, 2024 $ 1 $ 613 $ 1,166,218 $ 632,476 $ ( 12,185 ) $ ( 2,852 ) $ ( 90,617 ) $ 854 $ 1,694,508

Distributions to non-controlling interest — — — — — — — ( 266 ) ( 266 )

Balance at March 31, 2025 $ 1 $ 625 $ 1,170,179 $ 650,546 $ ( 13,252 ) $ ( 2,232 ) $ ( 97,545 ) $ 795 $ 1,709,117

See accompanying Notes to Unaudited Consolidated Financial Statements.

2 unchanged sentences

(dollars in thousands)

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Cash flows from operating activities:

8 unchanged sentences

Net amortization of deferred costs on borrowings 146 152

Amortization of core deposit intangible 2,457 3,008

Amortization of intangibles 940 844

Net accretion of purchase accounting adjustments ( 238 ) ( 947 )

1 unchanged sentence

Provision for credit losses 5,340 591

Net write down of fixed assets held-for-sale to net realizable value — 459

Net gain on sale of fixed assets ( 131 ) ( 26 )

Net loss on sale of fixed assets 2 —

Net loss on sales of available-for-sale securities — 110

Net (gain) loss on equity investments ( 4,230 ) 5,908

Net gain on equity investments ( 205 ) ( 1,923 )

Net gain on sales of loans ( 858 ) ( 357 )

2 unchanged sentences

Increase in value of bank owned life insurance ( 1,852 ) ( 1,862 )

Net (gain) loss on sale of assets held for sale ( 855 ) 7

Decrease (increase) in interest and dividends receivable 1,071 ( 628 )

Deferred tax provision (benefit) 935 ( 93 )

Deferred tax (benefit) provision ( 101 ) 1,422

Decrease (increase) in other assets 15,409 ( 20,997 )

1 unchanged sentence

Total adjustments ( 23,249 ) 17,502

Net cash provided by operating activities 47,440 151,084

Net cash (used in) provided by operating activities ( 1,786 ) 46,112

Cash flows from investing activities:

Net decrease (increase) in loans receivable 173,444 ( 210,412 )

Net decrease in loans receivable 13,723 69,501

Proceeds from sales of non-performing loans 4,583 —

Purchase of loan pools ( 26,859 ) —

Discounts received on purchased loan pool 2,562 —

Purchase of debt securities available-for-sale ( 6,943 ) ( 6,628 )

4 unchanged sentences

Proceeds from sales of debt securities available-for-sale — 390

Proceeds from calls and sales of equity investments 11,256 4,822

Principal repayments on debt securities available-for-sale 89,767 12,491

3 unchanged sentences

Purchases of restricted equity investments ( 49,298 ) ( 12,773 )

Proceeds from sales of assets held-for-sale 883 969

Purchases of premises and equipment ( 1,856 ) ( 680 )

Proceeds from disposal of premises and equipment 3,380 —

Net cash consideration paid for acquisition ( 1,000 ) —

Net cash provided by (used in) investing activities 114,998 ( 145,885 )

Net cash provided by investing activities 123,612 120,603

OceanFirst Financial Corp.

1 unchanged sentence

(dollars in thousands)

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Cash flows from financing activities:

(Decrease) increase in deposits $ ( 318,686 ) $ 858,947

Increase in short-term borrowings 7,949 13,807

Net proceeds (repayment) of FHLB advances 43,224 ( 605,110 )

Increase (decrease) in deposits $ 110,683 $ ( 198,053 )

Increase (decrease) in short-term borrowings 4,546 ( 6,373 )

Net repayment of FHLB advances ( 181,590 ) ( 190,200 )

Net proceeds from other borrowings — 229,000

6 unchanged sentences

Net cash used in provided by financing activities ( 81,720 ) ( 190,011 )

Net increase in cash and due from banks and restricted cash 60,453 240,896

Net increase (decrease) in cash and due from banks and restricted cash 40,106 ( 23,296 )

Cash and due from banks and restricted cash at beginning of period 123,615 153,718

14 unchanged sentences

Transfer of securities from held-to-maturity to available-for-sale — 500

Transfer of premises and equipment to assets held-for-sale — 1,302

Transfer of loans receivable to other real estate owned 106 —

Transfer of loans receivable to loans held-for-sale 4,583 —

See accompanying Notes to Unaudited Consolidated Financial Statements.

8 unchanged sentences

the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, Country Property Holdings, Inc., OFB Acquisition LLC;

and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”).

Spring Garden Capital Group, LLC (and its subsidiaries) (“Spring Garden”), and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”).

All significant intercompany accounts and transactions have been eliminated in consolidation.

The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented.

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results of operations that may be expected for the full year 2024 or any other period.

The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for the full year 2025 or any other period.

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented.

Actual results could differ from these estimates.

At March 31, 2025, the Company reclassified loans secured by owner-occupied commercial real estate to commercial and industrial - real estate to reflect the variation in the management and underlying risk profile of such loans as compared with non-owner-occupied (“investor”) commercial real estate loans.

Similarly, the Company also reclassified commercial and industrial loans that were not secured by real estate to commercial and industrial - non-real estate.

Collectively, these two loan portfolios are referred to as ‘Commercial and industrial’ loans.

Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Segment Reporting

The Company’s operations are solely in the financial services industry and provides a range of regional community banking services to retail and commercial customers.

The Company operates throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia.

Operating segments are defined as components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker (“CODM”).

The CODM makes operating decisions and manages the activities of the business on a consolidated basis.

Therefore, management concluded the Company has a single operating segment, and therefore one reportable segment.

Further, the CODM allocates resources and assesses performance based on an ongoing review of the Company’s consolidated financial results.

Specifically, the CODM reviews net income, reported within the consolidated statements of income, along with information in consolidated statement of financial condition to decide whether to reinvest profits into the Company or other strategic investments.

Refer to the Consolidated Statements of Financial Condition and Consolidated Statements of Income for net income and all significant expenses regularly provided to and reviewed by the CODM.

OceanFirst Financial Corp.

1 unchanged sentence

Earnings per Share

The following reconciles shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 (in thousands):

The following reconciles shares outstanding for basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Weighted average shares outstanding 58,541 59,207

5 unchanged sentences

Average diluted shares outstanding 58,111 58,791

For the three and nine months ended September 30, 2024, antidilutive stock options of 1,668,000 and 1,790,000 , respectively, were excluded from the earnings per share calculation.

For the three and nine months ended September 30, 2023, antidilutive stock options of 1,961,000 and 1,525,000 , respectively, were excluded from the earnings per share calculation.

For the three months ended March 31, 2025 and 2024, antidilutive stock options of 1,359,000 and 1,801,000 , respectively, were excluded from the earnings per share calculation.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at September 30, 2024 and December 31, 2023 are as follows (in thousands):

The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at March 31, 2025 and December 31, 2024 are as follows (in thousands):

Losses Estimated

Value Allowance for Securities Credit Losses

At September 30, 2024

At March 31, 2025

Debt securities available-for-sale:

39 unchanged sentences

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three and nine months ended September 30, 2024 and 2023 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

Allowance for securities credit losses

5 unchanged sentences

Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses.

Under this approach, the amortized cost of debt securities held-to-maturity at September 30, 2024, aggregated by credit quality indicator, are as follows (in thousands):

Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2025, aggregated by credit quality indicator, are as follows (in thousands):

Investment Grade Non-Investment Grade/Non-rated Total

As of September 30, 2024

As of March 31, 2025

State and municipal debt obligations $ 188,522 $ 827 $ 189,349

2 unchanged sentences

Total debt securities held-to-maturity $ 254,297 $ 14,682 $ 268,979

There were no realized gains/losses and $ 106,000 of realized losses on sale of debt securities available-for-sale for the three and nine months ended September 30, 2024, respectively as compared to no realized gains/losses and $ 697,000 of realized losses for the corresponding prior year periods.

There were no realized gains/losses and $ 110,000 of realized losses on sale of debt securities available-for-sale for the three months ended March 31, 2025 and 2024, respectively.

These realized gains/losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income.

The amortized cost and estimated fair value of debt securities at September 30, 2024 by contractual maturity are shown below (in thousands):

September 30, 2024 Amortized

The amortized cost and estimated fair value of debt securities at March 31, 2025 by contractual maturity are shown below (in thousands):

March 31, 2025 Amortized

Cost Estimated

5 unchanged sentences

Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties.

At September 30, 2024, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $ 81.6 million, $ 58.3 million, and $ 252.0 million, respectively, and an estimated fair value of $ 80.0 million, $ 57.4 million, and $ 252.1 million, respectively, were callable prior to the maturity date.

At March 31, 2025, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $ 77.0 million, $ 52.5 million, and $ 134.3 million, respectively, and an estimated fair value of $ 76.5 million, $ 51.2 million, and $ 134.3 million, respectively, were callable prior to the maturity date.

Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.

1 unchanged sentence

Notes to Unaudited Consolidated Financial Statements (Continued)

The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at September 30, 2024 and December 31, 2023, segregated by the duration of the unrealized losses, are as follows (in thousands):

The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at March 31, 2025 and December 31, 2024, segregated by the duration of the unrealized losses, are as follows (in thousands):

Less than 12 months 12 months or longer Total

4 unchanged sentences

Value Unrealized

At September 30, 2024

At March 31, 2025

Debt securities available-for-sale:

33 unchanged sentences

Total debt securities $ 369,359 $ ( 2,939 ) $ 972,659 $ ( 113,322 ) $ 1,342,018 $ ( 116,261 )

The Company concluded that no debt securities were impaired at September 30, 2024 based on consideration of several factors.

The Company concluded that no debt securities were impaired at March 31, 2025 based on consideration of several factors.

The Company noted that each issuer made all contractually due payments when required.

6 unchanged sentences

Equity Investments

At September 30, 2024 and December 31, 2023, the Company held equity investments of $ 95.7 million and $ 100.2 million, respectively.

At March 31, 2025 and December 31, 2024, the Company held equity investments of $ 87.4 million and $ 84.1 million, respectively.

The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in other financial institutions and funds.

The realized and unrealized gains or losses on equity securities for the three and nine months ended September 30, 2024 and 2023 are shown in the table below (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Net gain (loss) on equity investments $ 1,420 $ 1,452 $ 4,230 $ ( 5,908 )

The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2025 and 2024 are shown in the table below (in thousands):

Three Months Ended March 31,

Net gain on equity investments $ 205 $ 1,923

Net losses recognized on equity investments sold — —

Unrealized gains (losses) recognized on equity investments still held $ 1,420 $ 1,452 $ 4,230 $ ( 446 )

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Unrealized gains recognized on equity investments still held $ 205 $ 1,923

Loans Receivable, Net

Loans receivable, net at September 30, 2024 and December 31, 2023 consisted of the following (in thousands):

September 30, December 31,

Loans receivable, net at March 31, 2025 and December 31, 2024 consisted of the following (in thousands):

March 31, December 31,

Commercial real estate – investor $ 5,200,137 $ 5,287,683

Commercial real estate – owner occupied 841,930 943,891

Commercial and industrial:

Commercial and industrial – real estate 896,647 902,219

Commercial and industrial – non-real estate 748,575 647,945

Total commercial and industrial 1,645,222 1,550,164

Total commercial 6,845,359 6,837,847

23 unchanged sentences

2025 2024 2023 2022 2021 2020 and prior Revolving lines of credit Total

September 30, 2024

March 31, 2025

Commercial real estate - investor

3 unchanged sentences

Total commercial real estate - investor 16,469 72,708 139,400 1,162,789 1,288,610 1,809,071 711,090 5,200,137

Commercial real estate - owner occupied

Commercial and industrial:

Commercial and industrial - real estate

Pass 27,406 78,471 59,858 138,914 83,526 462,769 36,409 887,353

1 unchanged sentence

Substandard — — — — — 8,501 134 8,635

Total commercial real estate - owner occupied 28,705 62,077 111,308 91,752 42,307 482,416 23,365 841,930

Commercial and industrial

Total commercial and industrial - real estate 27,406 78,471 59,858 138,914 83,526 471,929 36,543 896,647

Commercial and industrial - non-real estate

Pass 41,811 174,013 32,316 33,912 10,540 104,992 331,149 728,733

1 unchanged sentence

Substandard — — 4,218 960 731 1,963 11,756 19,628

Total commercial and industrial - non-real estate 41,811 174,013 36,534 34,872 11,271 107,169 342,905 748,575

Total commercial and industrial 69,217 252,484 96,392 173,786 94,797 579,098 379,448 1,645,222

20 unchanged sentences

Total commercial real estate - investor 75,335 140,871 1,167,859 1,290,047 517,017 1,327,397 769,157 5,287,683

Commercial real estate - owner occupied

Commercial and industrial:

Commercial and industrial - real estate

Pass 82,104 62,799 140,578 90,720 40,746 442,685 31,776 891,408

1 unchanged sentence

Substandard — — — — 256 7,503 134 7,893

Total commercial real estate - owner occupied 66,642 120,280 103,104 59,179 105,994 466,927 21,765 943,891

Commercial and industrial

Total commercial and industrial - real estate 82,104 62,799 140,578 90,720 41,002 453,106 31,910 902,219

Commercial and industrial - non-real estate

Pass 81,867 30,084 35,469 14,276 3,873 180,695 278,217 624,481

1 unchanged sentence

Substandard — 4,326 1,019 749 — 256 12,032 18,382

Total commercial and industrial - non-real estate 81,867 39,145 36,488 15,025 4,108 180,967 290,345 647,945

Total commercial and industrial 163,971 101,944 177,066 105,745 45,110 634,073 322,255 1,550,164

13 unchanged sentences

Notes to Unaudited Consolidated Financial Statements (Continued)

An analysis of the allowance for credit losses on loans for the three and nine months ended September 30, 2024 and 2023 was as follows (in thousands):

Real Estate –

Investor Commercial

An analysis of the allowance for credit losses on loans for the three months ended March 31, 2025 and 2024 was as follows (in thousands):

Commercial and Industrial

Real Estate –

Occupied Commercial

Industrial Residential

Investor Commercial and Industrial - Real Estate Commercial

Industrial - Non-Real Estate Residential

Real Estate Other Consumer Total

For the three months ended September 30, 2024

Allowance for credit losses on loans

Balance at beginning of period $ 27,853 $ 3,931 $ 7,915 $ 27,833 $ 1,307 $ 68,839

Provision (benefit) for credit losses 3,074 ( 220 ) 1,767 ( 4,564 ) 82 139

Charge-offs — — — ( 35 ) ( 89 ) ( 124 )

Recoveries 123 4 2 29 54 212

Balance at end of period $ 31,050 $ 3,715 $ 9,684 $ 23,263 $ 1,354 $ 69,066

For the three months ended September 30, 2023

For the three months ended March 31, 2025

Allowance for credit losses on loans

4 unchanged sentences

Balance at end of period $ 33,947 $ 4,102 $ 12,837 $ 26,810 $ 1,102 $ 78,798

For the nine months ended September 30, 2024

For the three months ended March 31, 2024

Allowance for credit losses on loans

Balance at beginning of period $ 27,899 $ 4,354 $ 6,867 $ 27,029 $ 988 $ 67,137

Provision (benefit) for credit losses 4,671 ( 668 ) 2,808 ( 3,913 ) 744 3,642

(Benefit) provision for credit losses ( 865 ) ( 107 ) 769 9 579 385

Charge-offs ( 46 ) — — — ( 395 ) ( 441 )

1 unchanged sentence

Balance at end of period $ 26,990 $ 4,251 $ 7,641 $ 27,104 $ 1,187 $ 67,173

For the nine months ended September 30, 2023

Allowance for credit losses on loans

Balance at beginning of period $ 21,070 $ 4,423 $ 5,695 $ 24,530 $ 1,106 $ 56,824

Provision (benefit) for credit losses 13,010 38 974 1,700 ( 322 ) 15,400

( 8,350 ) ( 6 ) ( 128 ) — ( 111 ) ( 8,595 )

Recoveries 5 9 21 34 179 248

Balance at end of period $ 25,735 $ 4,464 $ 6,562 $ 26,264 $ 852 $ 63,877

The following tables summarize gross charge-offs by vintage (in thousands):

2024 2023 2022 2021 2020 and prior Total

For the three months ended September 30, 2024

Residential real estate $ ( 33 ) $ — $ ( 2 ) $ ( 35 )

Other consumer — — ( 89 ) ( 89 )

Total charge-offs $ ( 33 ) $ — $ ( 91 ) $ ( 124 )

For the nine months ended September 30, 2024

For the three months ended March 31, 2025

Commercial real estate – investor $ — $ — $ ( 31 ) $ ( 24 ) $ — $ ( 55 )

$ — $ ( 46 ) $ ( 1,600 ) $ ( 1,646 )

Residential real estate ( 68 ) ( 55 ) ( 110 ) ( 291 ) ( 198 ) ( 722 )

1 unchanged sentence

Total charge-offs $ ( 68 ) $ ( 55 ) $ ( 141 ) $ ( 315 ) $ ( 219 ) $ ( 798 )

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

2021 2019 and prior Total

For the three months ended September 30, 2023

Commercial real estate – investor (1)

$ ( 8,350 ) $ — $ ( 8,350 )

Other consumer — ( 29 ) ( 29 )

Total charge-offs $ ( 8,350 ) $ ( 29 ) $ ( 8,379 )

For the nine months ended September 30, 2023

For the three months ended March 31, 2024

Commercial real estate – investor

$ ( 46 ) $ — $ ( 46 )

Commercial real estate – owner occupied — ( 6 ) ( 6 )

Commercial and industrial — ( 128 ) ( 128 )

Other consumer — ( 395 ) ( 395 )

Total charge-offs $ ( 46 ) $ ( 395 ) $ ( 441 )

(1) Gross charge-offs of $ 1.6 million and $ 8.4 million primarily related to a single commercial relationship which had partial charge-offs during the nine months ended September 30, 2024 and the three and nine months ended September 30, 2023.

This was resolved via sale of collateral during the current quarter.

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing.

At September 30, 2024 and December 31, 2023, the Company had collateral dependent loans with an amortized cost balance as follows:

commercial real estate - investor of $ 7.1 million and $ 15.2 million, respectively, commercial real estate - owner occupied of $ 3.7 million and $ 352,000 , respectively, and commercial and industrial of $ 122,000 and $ 304,000 , respectively.

In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $ 5.9 million and $ 2.6 million at September 30, 2024 and December 31, 2023, respectively.

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of September 30, 2024 and December 31, 2023 (in thousands):

September 30, December 31,

At March 31, 2025 and December 31, 2024, the Company had collateral dependent loans with an amortized cost balance as follows:

commercial real estate - investor of $ 18.4 million and $ 11.8 million, respectively, commercial and industrial - real estate of $ 4.6 million and $ 4.8 million, respectively, and commercial and industrial - non-real estate of $ 22,000 and $ 32,000 , respectively.

In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $ 4.8 million and $ 8.6 million at March 31, 2025 and December 31, 2024, respectively.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of March 31, 2025 and December 31, 2024 (in thousands):

March 31, December 31,

Commercial real estate – investor $ 23,595 $ 17,000

$ 12,478 $ 20,820

Commercial real estate – owner occupied 4,368 351

Commercial and industrial:

Commercial and industrial - real estate 4,690 4,787

Commercial and industrial - non-real estate 22 32

Total commercial and industrial 4,712 4,819

Residential real estate (1)

Other consumer (1)

$ 28,139 $ 29,548

(1) December 31, 2023 includes the exposure of $ 8.8 million of the single commercial real estate relationship resolved during the quarter.

At September 30, 2024 and December 31, 2023, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans.

At September 30, 2024 and December 31, 2023, there were no loans that were past due 90 days or greater and still accruing interest.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the aging of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023 by loan portfolio segment (in thousands):

Total non-performing loans $ 36,970 $ 35,527

(1) The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $ 5.1 million.

At March 31, 2025 and December 31, 2024, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans.

At March 31, 2025 and December 31, 2024, there were no loans that were past due 90 days or greater and still accruing interest.

The following table presents the aging of the recorded investment in past due loans as of March 31, 2025 and December 31, 2024 by loan portfolio segment (in thousands):

Past Due 60-89

3 unchanged sentences

Past Due Total

September 30, 2024

March 31, 2025

Commercial real estate – investor $ 9,175 $ 13,196 $ 11,019 $ 33,390 $ 5,166,747 $ 5,200,137

$ 366 $ 1,604 $ 6,828 $ 8,798 $ 5,264,361 $ 5,273,159

Commercial real estate – owner occupied 924 — 1,447 2,371 839,559 841,930

Commercial and industrial:

Commercial and industrial - real estate 1,695 622 598 2,915 893,732 896,647

Commercial and industrial - non-real estate 515 15 — 530 748,045 748,575

Total commercial and industrial 2,210 637 598 3,445 1,641,777 1,645,222

Residential real estate 19,580 569 2,802 22,951 3,030,367 3,053,318

Other consumer 655 224 1,962 2,841 223,792 226,633

$ 6,778 $ 8,680 $ 14,272 $ 29,730 $ 9,992,426 $ 10,022,156

Total loans $ 31,620 $ 14,626 $ 16,381 $ 62,627 $ 10,062,683 $ 10,125,310

December 31, 2024

Commercial real estate – investor $ 4,624 $ 8,880 $ 10,877 $ 24,381 $ 5,263,302 $ 5,287,683

$ 978 $ 684 $ 15,201 $ 16,863 $ 5,337,111 $ 5,353,974

Commercial real estate – owner occupied 335 352 293 980 942,911 943,891

Commercial and industrial:

Commercial and industrial - real estate 941 — 1,392 2,333 899,886 902,219

Commercial and industrial - non-real estate 3 — 16 19 647,926 647,945

Total commercial and industrial 944 — 1,408 2,352 1,547,812 1,550,164

Residential real estate 18,518 2,242 6,551 27,311 3,022,452 3,049,763

Other consumer 1,060 282 1,999 3,341 227,121 230,462

$ 17,206 $ 1,996 $ 20,886 $ 40,088 $ 10,154,507 $ 10,194,595

(1) December 31, 2023 includes the exposure of $ 8.8 million of the single commercial real estate relationship resolved during the quarter.

Total loans $ 25,146 $ 11,404 $ 20,835 $ 57,385 $ 10,060,687 $ 10,118,072

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023.

Since adoption, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty.

In accordance with Accounting Standards Update (“ASU”) 2022-02, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty.

These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay.

1 unchanged sentence

Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis.

As of September 30, 2024 and December 31, 2023, loans with modifications to borrowers experiencing financial difficulty totaled $ 23.7 million and $ 8.9 million, respectively.

There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of September 30, 2024 or December 31, 2023.

As of March 31, 2025 and December 31, 2024, loans with modifications to borrowers experiencing financial difficulty totaled $ 35.9 million and $ 30.9 million, respectively.

There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of March 31, 2025 or December 31, 2024.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023 (in thousands):

Term Extension Interest Rate Reduction Combination of Term Extension and Interest Rate Reduction Other Than Insignificant Payment Delay Total % of Total by Loan Portfolio Segment

For the three months ended September 30, 2024

$ — $ — $ — $ — $ — — %

For the three months ended September 30, 2023

Residential real estate $ 65 $ — $ — $ — $ 65 — %

Other consumer — — 170 — 170 0.07

$ 65 $ — $ 170 $ — $ 235 — %

For the nine months ended September 30, 2024

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024 (in thousands):

Term Extension Combination of Term Extension and Interest Rate Reduction Other Than Insignificant Payment Delay Total % of Total by Loan Portfolio Segment

For the three months ended March 31, 2025

Commercial real estate – investor $ 5,160 $ — $ — $ 5,160 0.10 %

Commercial real estate – owner occupied — — — 2,994 2,994 0.36

Residential real estate 129 — — — 129 —

Other consumer — — 148 — 148 0.06

$ 5,160 $ — $ — $ 5,160 0.05 %

For the nine months ended September 30, 2023

For the three months ended March 31, 2024

Commercial and industrial - real estate $ — $ — $ 2,994 $ 2,994 0.33 %

Residential real estate 129 — — 129 —

3 unchanged sentences

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended September 30, 2024 and since adoption of the standard for September 30, 2023 (in thousands):

Current 60 - 89 Days past due 90 Days or Greater past due Total

September 30, 2024

The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2025 and 2024 (in thousands):

Current 90 Days or Greater past due Total

March 31, 2025

Commercial real estate – investor $ 24,275 $ — $ 24,275

Commercial real estate – owner occupied 2,896 — — 2,896

Residential real estate 128 — — 128

Other consumer 47 147 — 194

$ 24,275 $ — $ 24,275

September 30, 2023

March 31, 2024

Commercial real estate – investor $ 7,758 $ — $ 7,758

Commercial and industrial - real estate 2,994 — 2,994

Residential real estate 258 153 (1)

1 unchanged sentence

$ 11,429 $ 153 $ 11,582

(1) Represents one residential loan that defaulted during the three and nine months ended September 30, 2023, which had been modified since the adoption of the standard.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The major types of deposits at September 30, 2024 and December 31, 2023 were as follows (in thousands):

Type of Account September 30, December 31,

(1) Represents one residential loan that defaulted during the period and had been modified within the previous 12 months.

The major types of deposits at March 31, 2025 and December 31, 2024 were as follows (in thousands):

Type of Account March 31, December 31,

Non-interest-bearing $ 1,660,738 $ 1,617,182

4 unchanged sentences

Total deposits $ 10,177,023 $ 10,066,342

Included in time deposits at September 30, 2024 and December 31, 2023 was $ 451.1 million and $ 412.0 million, respectively, of deposits of $250,000 or more.

Time deposits also include brokered deposits of $ 201.0 million and $ 631.5 million at September 30, 2024 and December 31, 2023, respectively.

Included in time deposits at March 31, 2025 and December 31, 2024 was $ 408.1 million and $ 457.2 million, respectively, of deposits of $250,000 or more.

Time deposits also include brokered deposits of $ 370.5 million and $ 74.7 million at March 31, 2025 and December 31, 2024, respectively.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Borrowed Funds

Borrowed funds at September 30, 2024 and December 31, 2023 were as follows (in thousands):

September 30, December 31,

Borrowed funds at March 31, 2025 and December 31, 2024 were as follows (in thousands):

March 31, December 31,

FHLB advances $ 891,021 $ 1,072,611

2 unchanged sentences

Total borrowed funds $ 1,153,961 $ 1,330,724

At September 30, 2024, there were $ 831.9 million of FHLB term advances and $ 60.0 million outstanding in overnight borrowings from the FHLB, as compared to $ 848.6 million and $ 0 at December 31, 2023, respectively.

At September 30, 2024, there were $ 419.9 million of other borrowings as compared to $ 196.5 million at December 31, 2023 as a result of lower-cost funding availability.

At March 31, 2025, there were $ 731.5 million of term advances and $ 159.5 million of overnight borrowings from the FHLB, as compared to $ 1.07 billion and none at December 31, 2024, respectively.

Pledged assets

1 unchanged sentence

Loans Debt securities Total

September 30, 2024

March 31, 2025

FHLB and FRB $ 7,230,312 $ 947,859 $ 8,178,171

7 unchanged sentences

The lender agrees to resell to the Company substantially the same securities at the maturity of the repurchase agreements.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Fair Value Measurements

14 unchanged sentences

The fair value hierarchy is as follows:

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

18 unchanged sentences

Certain equity investments without readily determinable fair values are measured at net asset value (“NAV”) per share as a practical expedient, which are excluded from the fair value hierarchy levels in the table below.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Interest Rate Derivatives

1 unchanged sentence

When entering into an interest rate swap or cap contract, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of the contract counterparty.

Loans Individually Measured for Impairment

Loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs.

Other Real Estate Owned and Loans Individually Measured for Impairment

Other real estate owned and loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs.

Fair value is generally based on independent appraisals (Level 3), which may be adjusted by management for qualitative factors, such as economic factors and estimated liquidation expenses.

The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):

Fair Value Measurements at Reporting Date Using:

2 unchanged sentences

Inputs Level 3

September 30, 2024

March 31, 2025

Items measured on a recurring basis:

8 unchanged sentences

45,823 — — 40,163

Other real estate owned

1,917 — — 1,917

Loans measured for impairment based on the fair value of the underlying collateral (3)

11 unchanged sentences

43,657 — — 39,676

Other real estate owned 1,811 — — 1,811

Loans measured for impairment based on the fair value of the underlying collateral (3)

25,148 — — 25,148

(1) As of September 30, 2024 and December 31, 2023, equity investments included $ 46.2 million and $ 43.6 million, respectively, of equity investments measured under the measurement alternative.

This included no unrealized gains or losses for the nine months ended September 30, 2024 and the year ended December 31, 2023.

(2) As of September 30, 2024 and December 31, 2023, equity investments included $ 3.9 million and $ 3.4 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(1) As of March 31, 2025 and December 31, 2024, equity investments included $ 40.2 million and $ 39.7 million, respectively, of equity investments measured under the measurement alternative.

There were no unrealized gains or losses for the three months ended March 31, 2025 and the year ended December 31, 2024.

(2) As of March 31, 2025 and December 31, 2024, equity investments included $ 5.7 million and $ 4.0 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent.

The range may vary but is generally 0 % to 8 % on the discount for costs to sell and 0 % to 10 % on appraisal adjustments.

The range of fair value adjustments may vary but is generally 0 % to 8 % on the discount for costs to sell and 0 % to 10 % on appraisal adjustments.

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods.

There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three and nine months ended September 30, 2024 and 2023.

There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three months ended March 31, 2025 and 2024.

OceanFirst Financial Corp.

30 unchanged sentences

The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Securities Sold Under Agreements to Repurchase with Customers

Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly.

FHLB Advances and Other Borrowings

Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities.

Securities Sold Under Agreements to Repurchase with Customers

Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly.

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The book value and estimated fair value of the Company’s significant financial instruments not recorded at fair value as of September 30, 2024 and December 31, 2023 are presented in the following tables (in thousands):

The book value and estimated fair value of the Company’s significant financial instruments not recorded at fair value as of March 31, 2025 and December 31, 2024 are presented in the following tables (in thousands):

Fair Value Measurements at Reporting Date Using:

2 unchanged sentences

Inputs Level 3

September 30, 2024

March 31, 2025

Financial Assets:

50 unchanged sentences

however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC Topic 820, Fair Value Measurements.

The Company recognized losses of $ 25,000 and $ 14,000 in commercial loan swap income resulting from the fair value adjustments for the three and nine months ended September 30, 2024, respectively, as compared to losses of $ 2,000 and $ 2,000 for the corresponding prior year periods.

The Company recognized losses of $ 16,000 and gains of $ 13,000 in commercial loan swap income resulting from the fair value adjustments for the three months ended March 31, 2025 and 2024, respectively.

Derivatives Designated as Hedging Instruments

6 unchanged sentences

The table below presents the effect on the Company’s accumulated other comprehensive income/loss (“AOCI” or “AOCL”) attributable to the cash flow hedge derivative, net of tax, and the related gains/losses reclassified from AOCI into income (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

AOCL balance at beginning of period, net of tax $ ( 87 ) $ ( 36 )

Unrealized gains (losses) recognized in OCI 837 ( 622 ) ( 418 ) ( 1,798 )

Unrealized losses recognized in OCI — ( 949 )

Losses reclassified from AOCI into interest income 64 259

AOCI (AOCL) balance at end of period, net of tax $ 314 $ ( 1,285 ) $ 314 $ ( 1,285 )

During the next twelve months ending September 30, 2025, the Company estimates that an additional $ 174,000 will be reclassified as an addition to interest income.

AOCL balance at end of period, net of tax $ ( 23 ) $ ( 726 )

During the twelve months ending March 31, 2026, the Company estimates that an additional $ 30,000 will be reclassified as a reduction to interest income.

OceanFirst Financial Corp.

3 unchanged sentences

Other assets Other liabilities

As of September 30, 2024

As of March 31, 2025

Derivatives Not Designated as Hedging Instruments

13 unchanged sentences

This requirement is dependent on certain specified credit measures.

The amount of collateral posted with third parties was $ 0 at both September 30, 2024 and December 31, 2023.

The amount of collateral received from third parties was $ 55.8 million and $ 88.3 million at September 30, 2024 and December 31, 2023, respectively.

There was no collateral posted by the Company with third parties at both March 31, 2025 and December 31, 2024.

The amount of collateral received from third parties was $ 69.8 million and $ 93.3 million at March 31, 2025 and December 31, 2024, respectively.

The amount of collateral posted with third parties and received from third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures.

The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $ 67.4 million and $ 87.8 million at September 30, 2024 and December 31, 2023, respectively.

The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $ 72.8 million and $ 91.5 million at March 31, 2025 and December 31, 2024, respectively.

The interest rate derivatives which the Company executes with the commercial borrowers are collateralized by the borrowers’ commercial real estate financed by the Company.

5 unchanged sentences

The following table represents the classification of the Company’s Right of Use (“ROU”) assets and lease liabilities on the Consolidated Statements of Financial Condition (in thousands):

September 30, December 31,

March 31, December 31,

Lease ROU Assets Classification

7 unchanged sentences

Total lease liabilities $ 18,999 $ 18,535

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $ 4.8 million and $ 5.9 million at September 30, 2024 and December 31, 2023, respectively.

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $ 3.7 million and $ 4.4 million at March 31, 2025 and December 31, 2024, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments.

5 unchanged sentences

For the finance lease, the Company utilized its incremental borrowing rate at lease inception.

September 30, December 31,

March 31, December 31,

Weighted-Average Remaining Lease Term

7 unchanged sentences

The following table represents lease expenses and other lease information (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Lease Expense

27 unchanged sentences

In accordance with ASC 810, Consolidation, the Company has consolidated Trident’s assets and liabilities.

The summarized financial information for the Company’s consolidated VIE at September 30, 2024 and December 31, 2023 consisted of the following (in thousands):

September 30, 2024 December 31, 2023

The summarized financial information for the Company’s consolidated VIE at March 31, 2025 and December 31, 2024 consisted of the following (in thousands):

March 31, 2025 December 31, 2024

Cash and cash equivalents $ 20,257 $ 21,642

3 unchanged sentences

Net assets $ 1,987 $ 2,766

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Subsequent Events

On October 1, 2024, the Company completed the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”) for a purchase price of $ 68 million.

The transaction will be complementary to the Company’s existing products and will expand the Company’s specialty finance offerings.

OTHER INFORMATION

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 4. Controls and Procedures