Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FINANCIAL SUMMARY (1)
At or for the Quarters Ended
(dollars in thousands, except per share amounts) September 30, 2025 June 30, 2025 September 30, 2024
SELECTED FINANCIAL CONDITION DATA:
Total assets $ 14,324,664 $ 13,327,847 $ 13,488,483
Loans receivable, net of allowance for loan credit losses 10,489,852 10,119,781 9,963,598
Deposits 10,435,994 10,232,442 10,116,167
Total stockholders’ equity 1,653,427 1,643,680 1,694,508
SELECTED OPERATING DATA:
Net interest income 90,657 87,636 82,219
Provision for credit losses 4,092 3,039 517
Other income 12,304 11,733 14,684
Operating expenses 76,327 71,474 63,736
Net income 17,386 19,085 25,186
Net income attributable to OceanFirst Financial Corp. 17,330 19,046 25,116
Net income available to common stockholders 17,330 16,200 24,112
Diluted earnings per share 0.30 0.28 0.42
SELECTED FINANCIAL RATIOS:
Book value per common share at end of period 28.81 28.64 29.02
Cash dividend per share 0.20 0.20 0.20
Dividend payout ratio per common share 66.67 % 71.43 % 47.62 %
Stockholders’ equity to total assets 11.54 12.33 12.56
Return on average assets (2) (3) (4)
0.51 0.49 0.71
Return on average stockholders’ equity (2) (3) (4)
4.15 3.86 5.68
Net interest rate spread (5)
2.36 2.37 2.06
Net interest margin (2) (6)
2.91 2.91 2.67
Operating expenses to average assets (2) (4)
2.23 2.16 1.89
Efficiency ratio (4) (7)
74.13 71.93 65.77
Loan-to-deposit ratio (8)
101.20 99.50 99.10
ASSET QUALITY:
Non-performing loans (9)
$ 41,263 $ 33,511 $ 28,139
Non-performing assets (9)
48,761 41,191 28,139
Allowance for loan credit losses as a percent of total loans receivable (8) (10)
0.77 % 0.78 % 0.69 %
Allowance for loan credit losses as a percent of total non-performing loans (9) (10)
196.87 236.54 245.45
Non-performing loans as a percent of total loans receivable (8) (9)
0.39 0.33 0.28
Non-performing assets as a percent of total assets (9)
0.34 0.31 0.21
(1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2) Ratios are annualized.
(3) Ratios are based on net income available to common stockholders.
(4) Performance ratios for the three months ended September 30, 2025 included a net expense of $3.9 million, or $3.0 million, net of tax benefit, related to restructuring charges, a net loss on equity investments and a Federal Deposit Insurance Corporation (“FDIC”) special assessment release. Performance ratios for the three months ended June 30, 2025 included a loss on redemption of preferred stock of $1.8 million and a net gain on equity investments of $488,000, or $373,000, net of tax expense. Performance ratios for the three months ended September 30, 2024 included a net benefit of $1.2 million, or $919,000, net of tax expense, related to a net gain on equity investments, a net gain on sale of trust business and merger related expenses.
(5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(7) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
(8) Total loans receivable excludes loans held-for-sale.
(9) Non-performing assets consist of non-performing loans and real estate acquired through foreclosure. Non-performing loans and assets generally consist of all loans 90 days or more past due and other loans in the process of foreclosure. It is the Company’s policy to cease accruing interest on all such loans and to reverse previously accrued interest.
(10) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and purchased with credit deterioration (“PCD”) marks on these loans, not reflected in the allowance for loan credit losses, was $4.4 million, $5.0 million, and $5.7 million at September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
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Summary
OceanFirst Financial Corp. is the holding company for OceanFirst Bank N.A. (the “Bank”), a regional bank serving business and retail customers throughout New Jersey and the major metropolitan areas between Massachusetts and Virginia. The term “Company” refers to OceanFirst Financial Corp., the Bank and all their subsidiaries on a consolidated basis. The Company’s results of operations are primarily dependent on net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and investments, and the interest expense on its interest-bearing liabilities, such as deposits and borrowings. The Company also generates non-interest income such as income from bankcard services, trust and asset management products and services, deposit account services, sales of loans and investments, bank owned life insurance and commercial loan swap income. The Company’s operating expenses primarily consist of compensation and employee benefits, occupancy and equipment, marketing, federal deposit insurance and regulatory assessments, data processing, check card processing, professional fees and other general and administrative expenses. The Company’s results of operations are significantly affected by competition, general economic conditions, including levels of unemployment and real estate values, as well as changes in market interest rates, inflation, government policies, including the imposition of tariffs and retaliatory responses, and actions of regulatory agencies.
Key developments relating to the Company’s financial results and corporate activities for the three months ended September 30, 2025, as compared to the prior linked quarter, were as follows:
• Loan Growth: Total loans increased $372.9 million, representing a 14% annualized growth rate, which included $219.1 million of commercial and industrial loan growth. Commercial loan originations increased 74% to $739.2 million, from $425.9 million in the linked quarter, and the commercial loan pipeline remains robust at $710.9 million, as compared to a record high of $790.8 million at June 30, 2025.
• Deposit Growth: Total deposits increased to $10.4 billion from $10.2 billion at June 30, 2025. Deposits, excluding $117.7 million of brokered deposit run-off, increased $321.2 million.
• Residential Outsourcing : The current quarter results include the impact of the Company’s strategic decision to outsource residential loan originations and title business. In connection with this decision, the Company recognized $4.1 million of restructuring charges during the quarter and will incur approximately $8 million of additional charges next quarter. The residential outsourcing initiative will result in an 11% reduction in workforce and result in an anticipated annual expense savings of $14 million offset in part by a reduction in gain on sale of loans starting in 2026.
Net income available to common stockholders for the three and nine months ended September 30, 2025 decreased to $17.3 million and $54.0 million, or $0.30 and $0.94 per diluted share, respectively, as compared to $24.1 million and $75.1 million, or $0.42 and $1.29 per diluted share, for the corresponding prior year periods. The dividends paid to preferred stockholders were $0 and $2.0 million for the three and nine months ended September 30, 2025, respectively, compared to $1.0 million and $3.0 million for the three and nine months ended September 30, 2024.
On October 22, 2025, the Company’s Board of Directors declared a quarterly cash dividend on common stock of $0.20 per share. The dividend, related to the quarter ended September 30, 2025, will be paid on November 14, 2025 to common stockholders of record on November 3, 2025.
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Analysis of Net Interest Income
Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them. For the three and nine months ended September 30, 2025, interest income included net loan fees of $1.4 million and $4.1 million, respectively, as compared to $730,000 and $2.6 million for the same prior year periods.
The following tables set forth certain information relating to the Company for the three and nine months ended September 30, 2025 and 2024. The yields and costs, which are annualized, are derived by dividing the income or expense by the average balance of the related assets or liabilities, respectively, for the periods shown except where noted otherwise. Average balances are derived from average daily balances. The yields and costs include certain fees and costs which are considered adjustments to yields.
For the Three Months Ended September 30,
2025 2024
(dollars in thousands) Average Balance Interest Average
Yield/
Cost (1)
Average Balance Interest Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments $ 94,470 $ 1,115 4.68 % $ 210,245 $ 2,971 5.62 %
Securities (2)
1,990,917 19,232 3.83 2,063,633 21,919 4.23
Loans receivable, net (3)
Commercial 6,975,780 105,587 6.01 6,782,777 102,881 6.03
Residential real estate 3,151,177 32,685 4.15 2,992,138 29,677 3.97
Home equity loans and lines and other consumer (“other consumer”) 218,465 3,575 6.49 242,942 4,077 6.68
Allowance for loan credit losses, net of deferred loan costs and fees (66,812) — — (59,063) — —
Loans receivable, net 10,278,610 141,847 5.49 9,958,794 136,635 5.46
Total interest-earning assets 12,363,997 162,194 5.21 12,232,672 161,525 5.26
Non-interest-earning assets 1,187,197 1,206,024
Total assets $ 13,551,194 $ 13,438,696
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking $ 4,000,804 21,253 2.11 % $ 3,856,281 21,731 2.24 %
Money market 1,426,586 10,507 2.92 1,256,536 11,454 3.63
Savings 1,009,742 1,674 0.66 1,088,926 2,218 0.81
Time deposits 2,105,734 19,812 3.73 2,339,370 26,915 4.58
Total 8,542,866 53,246 2.47 8,541,113 62,318 2.90
Federal Home Loan Bank (“FHLB”) advances 1,123,946 12,793 4.52 757,535 9,140 4.80
Securities sold under agreements to repurchase 59,017 438 2.94 75,871 491 2.57
Other borrowings 249,233 5,060 8.05 499,839 7,357 5.86
Total borrowings 1,432,196 18,291 5.07 1,333,245 16,988 5.07
Total interest-bearing liabilities 9,975,062 71,537 2.85 9,874,358 79,306 3.20
Non-interest-bearing deposits 1,720,657 1,634,743
Non-interest-bearing liabilities 199,582 240,560
Total liabilities 11,895,301 11,749,661
Stockholders’ equity 1,655,893 1,689,035
Total liabilities and stockholders’ equity $ 13,551,194 $ 13,438,696
Net interest income $ 90,657 $ 82,219
Net interest rate spread (4)
2.36 % 2.06 %
Net interest margin (5)
2.91 % 2.67 %
Total cost of deposits (including non-interest-bearing deposits) 2.06 % 2.44 %
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For the Nine Months Ended September 30,
2025 2024
(dollars in thousands) Average
Balance Interest Average
Yield/
Cost (1)
Average
Balance Interest Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments $ 102,267 $ 3,188 4.17 % $ 168,822 $ 6,966 5.51 %
Securities (2)
1,970,368 57,190 3.88 2,073,552 65,782 4.24
Loans receivable, net (3)
Commercial 6,848,512 303,852 5.93 6,851,021 309,922 6.04
Residential real estate 3,103,008 95,816 4.12 2,981,822 87,345 3.91
Other consumer 224,073 10,676 6.37 245,777 12,538 6.81
Allowance for loan credit losses, net of deferred loan costs and fees (65,028) — — (58,825) — —
Loans receivable, net 10,110,565 410,344 5.42 10,019,795 409,805 5.46
Total interest-earning assets 12,183,200 470,722 5.16 12,262,169 482,553 5.25
Non-interest-earning assets 1,188,063 1,216,562
Total assets $ 13,371,263 $ 13,478,731
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking $ 4,041,710 63,292 2.09 % $ 3,881,344 63,570 2.19 %
Money market 1,363,977 29,577 2.90 1,177,612 31,107 3.53
Savings 1,032,239 5,138 0.67 1,202,533 9,284 1.03
Time deposits 2,066,745 58,558 3.79 2,363,542 78,283 4.42
Total 8,504,671 156,565 2.46 8,625,031 182,244 2.82
FHLB Advances 1,000,796 34,086 4.55 704,911 25,657 4.86
Securities sold under agreements to repurchase 61,250 1,284 2.80 72,239 1,380 2.55
Other borrowings 264,222 13,842 7.00 513,951 22,566 5.86
Total borrowings 1,326,268 49,212 4.96 1,291,101 49,603 5.13
Total interest-bearing liabilities 9,830,939 205,777 2.80 9,916,132 231,847 3.12
Non-interest-bearing deposits 1,653,007 1,631,841
Non-interest-bearing liabilities 202,976 251,878
Total liabilities 11,686,922 11,799,851
Stockholders’ equity 1,684,341 1,678,880
Total liabilities and stockholders’ equity $ 13,371,263 $ 13,478,731
Net interest income $ 264,945 $ 250,706
Net interest rate spread (4)
2.36 % 2.13 %
Net interest margin (5)
2.91 % 2.73 %
Total cost of deposits (including non-interest-bearing deposits) 2.06 % 2.37 %
(1) Average yields and costs are annualized.
(2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank (“FRB”) stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income divided by average interest-earning assets.
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Comparison of Financial Condition at September 30, 2025 and December 31, 2024
Total assets increased by $903.4 million to $14.32 billion, from $13.42 billion, primarily due to increases in loans and debt securities available-for-sale. Total loans increased by $439.9 million to $10.56 billion, from $10.12 billion, while the loan pipeline increased by $557.3 million to $863.9 million, from $306.7 million, primarily due to an increase in the commercial loan pipeline of $513.4 million. For more information about the loan portfolio, see “Lending Activities.” Debt securities available-for-sale increased by $434.1 million to $1.26 billion, from $827.5 million, primarily due to new purchases in the current quarter. Debt securities held-to-maturity decreased by $126.1 million to $919.7 million, from $1.05 billion, primarily due to principal repayments. Other assets decreased by $27.2 million to $158.5 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.
Total liabilities increased by $952.7 million to $12.67 billion, from $11.72 billion primarily related to an increase in FHLB advances and deposits. FHLB advances increased by $633.0 million to $1.71 billion, from $1.07 billion. Deposits increased by $369.7 million to $10.44 billion, from $10.07 billion, mostly driven by Premier Banking deposits. Time deposits increased to $2.22 billion, from $2.08 billion, representing 21.2% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $330.4 million, partly offset by a decrease in retail time deposits of $195.1 million. The loan-to-deposit ratio was 101.2%, as compared to 100.5%.
Other liabilities decreased by $55.5 million to $242.9 million, from $298.4 million, mostly due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.
Capital levels remain strong and in excess of “well-capitalized” regulatory levels at September 30, 2025, including the Company’s common equity tier one capital ratio which declined to 10.6%, driven primarily by loan growth, increased lending commitments and stock repurchases.
Total stockholders’ equity decreased to $1.65 billion, as compared to $1.70 billion, primarily due to the redemption of preferred stock for $55.5 million and capital returns comprised of dividends and share repurchases, partially offset by net income. Additionally, accumulated other comprehensive loss decreased by $7.1 million primarily due to increases in the fair market value of available-for-sale debt securities, net of tax.
During the nine months ended September 30, 2025, the Company repurchased 1,404,253 shares totaling $24.4 million representing a weighted average cost of $17.17, which includes repurchases of exercised options and awards from employees outside of the share repurchase program. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares. As of September 30, 2025, the Company had 3,226,284 shares available for repurchase under the authorized repurchase programs.
The Company’s stockholders’ equity to assets ratio was 11.54%, as compared to 12.69% and book value per share decreased to $28.81, as compared to $29.08, due to the drivers noted above.
Comparison of Operating Results for the Three and Nine Months Ended September 30, 2025 and September 30, 2024
General
Net income available to common stockholders decreased to $17.3 million and $54.0 million, or $0.30 and $0.94 per diluted share, respectively, as compared to $24.1 million and $75.1 million, or $0.42 and $1.29 per diluted share, for the corresponding prior year periods. Net income for the three and nine months ended September 30, 2025 included restructuring charges of $4.1 million for both periods, an FDIC special assessment release of $210,000 for both periods, and a net loss of $7,000 and net gain of $686,000 on equity investments, respectively. These items decreased net income by $3.0 million and $2.5 million, net of tax. Additionally, net income available to common stockholders for the nine months ended September 30, 2025 included a net loss on redemption of preferred stock of $1.8 million.
Net income for the three and nine months ended September 30, 2024 included net gains on equity investments of $1.4 million and $4.2 million, respectively, a net gain on sale of a portion of its trust business of $1.4 million and $2.6 million, respectively, and merger related expenses of $1.7 million for both periods. Net income for the nine months ended September 30, 2024 also included a special FDIC assessment of $418,000. These items increased net income by $919,000 and $3.6 million, net of tax, for the three and nine months ended September 30, 2024.
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Interest Income
Three months ended September 30, 2025 vs. September 30, 2024
Interest income for the three months ended September 30, 2025 increased to $162.2 million from $161.5 million for the corresponding prior year period. The average balance of interest-earning assets increased by $131.3 million primarily due to increases in commercial and residential loans, partly offset by a reduction in cash and securities. The average yield for interest-earning assets decreased to 5.21%, from 5.26% for the same prior year period, due to the lower interest rate environment.
Nine months ended September 30, 2025 vs. September 30, 2024
Interest income for the nine months ended September 30, 2025 decreased to $470.7 million from $482.6 million for the corresponding prior year period. The average balance of interest-earning assets decreased by $79.0 million, primarily driven by a decrease in securities and, to a lesser extent, interest-earning deposits and short-term investments, partly offset by an increase in residential loans. The yield on average interest-earning assets decreased to 5.16% from 5.25% for the same prior year period, due to the lower interest rate environment.
Interest Expense
Three months ended September 30, 2025 vs. September 30, 2024
Interest expense for the three months ended September 30, 2025 decreased to $71.5 million from $79.3 million in the corresponding prior year period. The average balance of interest-bearing liabilities increased by $100.7 million, primarily due to increases in FHLB advances, partly offset by a decrease in other borrowings. The cost of average interest-bearing liabilities decreased to 2.85% from 3.20% for the corresponding prior year period, primarily due to lower cost of deposits and, to a lesser extent, FHLB advances, partly offset by an increase in the cost of other borrowings. The total cost of deposits decreased 38 basis points to 2.06% from 2.44% for the same prior year period.
Nine months ended September 30, 2025 vs. September 30, 2024
Interest expense for the nine months ended September 30, 2025 decreased to $205.8 million from $231.8 million in the corresponding prior year period. The average balance of interest-bearing liabilities decreased by $85.2 million, primarily due to decreases in other borrowings and total deposits, partly offset by an increase in FHLB advances. The cost of average interest-bearing liabilities decreased to 2.80% from 3.12% for the corresponding prior year period, primarily due to lower cost of deposits and, to a lesser extent, FHLB advances, partly offset by an increase in the cost of other borrowings. The total cost of deposits decreased 31 basis points to 2.06% from 2.37% for the same prior year period.
Net Interest Income and Margin
Net interest income for the three and nine months ended September 30, 2025 increased to $90.7 million and $264.9 million, respectively, from $82.2 million and $250.7 million for the corresponding prior year periods, primarily reflecting the net impact of the decreasing interest rate environment. The net interest margin for the three and nine months ended September 30, 2025 increased to 2.91% for both current periods, from 2.67% and 2.73% for the same prior year periods, primarily due to the decrease in cost of funds.
Provision for Credit Losses
Provision for credit losses for the three and nine months ended September 30, 2025 was $4.1 million and $12.5 million, respectively, as compared to $517,000 and $4.2 million for the corresponding prior year periods. The current quarter provision was primarily driven by net loan growth and an increase in unfunded loan balances and commitments, partly offset by overall improvements in criticized and classified loans.
Net loan charge-offs were $617,000 and $3.5 million for the three and nine months ended September 30, 2025, respectively, as compared to net loan recoveries of $88,000 and net loan charge-offs $1.7 million for the same prior year periods. The current year included charge-offs of $1.6 million for two commercial relationships related to the Company’s recent acquisition and charge-offs of $445,000 related to sales of non-performing residential and consumer loans of $2.2 million. The nine months ended September 30, 2024 includes the impact of a $1.6 million charge-off related to a single commercial real estate relationship that was sold in the prior year.
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Non-interest Income
Three months ended September 30, 2025 vs. September 30, 2024
Other income decreased to $12.3 million, as compared to $14.7 million. Other income was adversely impacted by net losses on equity investments of $7,000 in the current quarter. For the prior year, other income was favorably impacted by net gains on equity investments of $1.4 million and a gain on sale of a portion of the Company’s trust business of $1.4 million. The remaining increase of $485,000 was primarily driven by increases in commercial loan swap income of $1.3 million due to new swaps, and net gain on sale of loans of $395,000, partly offset by a decrease in fees and service charges of $906,000, primarily due to lower retail deposit fees. In addition, the prior year included a non-recurring gain on sale of assets held for sale of $855,000.
Nine months ended September 30, 2025 vs. September 30, 2024
Other income decreased to $35.3 million, as compared to $38.0 million. Other income in the current period was favorably impacted by net gains on equity investments of $686,000. Other income in the prior period was favorably impacted by net gains on equity investments of $4.2 million and a gain on sale of a portion of the Company’s trust business of $2.6 million. The remaining increase of $3.5 million was primarily driven by increases related to commercial loan swap income of $1.7 million due to new swaps, net gain on sale of loans of $1.7 million, and non-recurring other income of $1.9 million in the current year. These were partly offset by a decrease of $855,000 related to a non-recurring gain on sale of assets held for sale in the prior year and a decrease in fees and service charges of $713,000, primarily due to lower retail deposit fees.
Non-interest Expense
Three months ended September 30, 2025 vs. September 30, 2024
Operating expenses increased to $76.3 million, as compared to $63.7 million. Operating expenses in the current quarter were adversely impacted by restructuring charges of $4.1 million related to outsourcing of residential loan originations and title business, partly offset by a reversal of FDIC special assessment fees of $210,000. Operating expenses in the prior year were adversely impacted by $1.7 million for merger related expenses. The remaining increase of $10.3 million was primarily driven by an increase in compensation and benefits of $5.5 million, mostly due to additional commercial banking team hires, acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in professional fees of $1.5 million, partly due to higher consulting fees, data processing expense of $1.2 million, occupancy expense of $941,000, partly due to additional space for commercial banking hires, addition of a new branch and acquisitions at the end of the prior year, and other operating expenses of $738,000, mostly due to additional loan servicing expenses.
Nine months ended September 30, 2025 vs. September 30, 2024
Operating expenses increased to $212.1 million, as compared to $181.0 million. Operating expenses in the current year were adversely impacted by restructuring charges of $4.1 million, partly offset by a reversal of FDIC special assessment fees of $210,000. Operating expenses in the prior year were adversely impacted by $2.1 million, related to merger related expenses and an FDIC special assessment. The remaining increase of $29.2 million was primarily driven by an increase in compensation and benefits of $16.6 million, mostly due to acquisitions at the end of the prior year, additional commercial banking team hires, and annual merit increases. Additional drivers were increases in other operating expenses of $3.7 million, mostly due to additional loan servicing expense, professional fees of $3.4 million, partly due to the recruitment of commercial bankers, data processing of $2.7 million, partly due to acquisitions at the end of the prior year, occupancy of $1.5 million, partly due to additional space for commercial banking hires, addition of a new branch and acquisitions from end of the prior year, and marketing of $637,000.
Income Tax Expense
The provision for income taxes was $5.2 million and $17.7 million for the three and nine months ended September 30, 2025, respectively, as compared to $7.5 million and $25.2 million for the same prior year periods, respectively. The effective tax rate was 22.9% and 23.4% for the three and nine months ended September 30, 2025, respectively, as compared to 22.9% and 24.4% for the same prior year periods. The effective tax rate for the prior year quarter was positively impacted by geographic mix and nine months ended September 30, 2024 was adversely impacted by a non-recurring write-off of a deferred tax asset of $1.2 million net of other state tax effects.
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Liquidity and Capital Resources
Liquidity Management
The Company manages its liquidity and funding needs through its Treasury function and the Asset Liability Committee. The Company has an internal policy that addresses liquidity and management monitors the adherence to policy limits to satisfy current and future cash flow needs. The policy includes internal limits, monitoring of key indicators, deposit concentrations, liquidity sources and availability, stress testing, collateral management, and other qualitative and quantitative metrics.
Management monitors cash on a daily basis to determine the liquidity needs of the Bank and OceanFirst Financial Corp. (the “Parent Company”), a separate legal entity from the Bank. Additionally, management performs multiple liquidity stress test scenarios on a periodic basis. As of September 30, 2025, the Bank and the Parent Company continued to maintain adequate liquidity under all stress scenarios. The Company also has a detailed contingency funding plan and obtains comprehensive reporting of funding trends on a monthly and quarterly basis, which are reviewed by management.
The Company continually evaluates its on-balance sheet liquidity, including cash and unpledged securities and funding capacity at the FHLB and FRB Discount Window, and periodically tests each of its lines of credit. As of September 30, 2025, total on-balance sheet liquidity and funding capacity was $3.6 billion.
The Company has a highly operational and granular deposit base, with long-standing client relationships across multiple customer segments providing stable funding. The vast majority of government deposits are protected by FDIC insurance as well as the State of New Jersey under the Government Unit Deposit Protection Act, which requires uninsured government deposits to be further collateralized by the Bank. At September 30, 2025, the Bank reported $6.37 billion of estimated uninsured deposits in its Call Report. This total included $2.55 billion of collateralized government deposits and $1.89 billion of intercompany deposits of fully consolidated subsidiaries, leaving estimated adjusted uninsured deposits of $1.93 billion, or 18.3% of total deposits. On-balance-sheet liquidity and funding capacity represented 189% of the estimated adjusted uninsured deposits.
The primary sources of liquidity specifically available to the Parent Company are dividends from the Bank, proceeds from the sale of investments, and the issuance of debt and common stock. For the nine months ended September 30, 2025, the Parent Company received dividend payments of $62.0 million from the Bank. At September 30, 2025, the Parent Company held $41.4 million in cash and cash equivalents.
The Bank’s primary sources of funds are deposits, principal and interest payments on loans and investments, FHLB advances, other borrowings and proceeds from the sale of loans and investments . While scheduled payments on loans and securities are predictable sources of funds, deposit flows, loan prepayments, and loan and investment sales are greatly influenced by interest rates, economic conditions, and competition. The Bank has other sources of liquidity if a need for additional funds arises, including lines of credit at multiple financial institutions and access to the FRB Discount Window.
As of September 30, 2025, the Company pledged $7.48 billion of loans with the FHLB and FRB to enhance the Company’s borrowing capacity, which included collateral pledged to the FHLB to obtain a letter of credit to collateralize certain municipal deposits. The Company also pledged $1.02 billion of securities to secure borrowings, enhance borrowing capacity, collateralize its repurchase agreements, and for other purposes required by law. The Company had $1.71 billion of FHLB advances, including $943.0 million of overnight borrowings as of September 30, 2025, as compared to $1.07 billion of FHLB term advances and no outstanding overnight borrowings from the FHLB at December 31, 2024.
The Company’s cash needs for the nine months ended September 30, 2025 were primarily satisfied by net proceeds from FHLB advances, increase in deposits and principal repayments of debt securities, and primarily utilized for the purchase of debt securities and fund loan growth.
Off-Balance Sheet Commitments and Contractual Obligations
In the normal course of business, the Bank routinely enters into various off-balance sheet commitments, primarily relating to the origination and funding of loans. At September 30, 2025, outstanding commitments to originate loans totaled $863.9 million and outstanding undrawn lines of credit totaled $1.71 billion, of which $1.43 billion were commitments to commercial and commercial construction borrowers and $277.5 million were commitments to consumer and residential construction borrowers. Commitments to fund undrawn lines of credit and commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the existing contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire
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without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company’s exposure to credit risk is represented by the contractual amount of the instruments.
At September 30, 2025, the Company also had various contractual obligations, which included debt obligations of $1.97 billion, including finance lease obligations of $1.2 million, and an additional $18.3 million in operating lease obligations included in other liabilities. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. Time deposits scheduled to mature in one year or less totaled $2.18 billion at September 30, 2025. If these deposits do not remain with the Company, it may need to seek other sources of funds, including other deposit products, advances from the Federal Home Loan Bank of New York and other borrowing sources. Depending on market conditions, the Company may be required to pay higher rates on such deposits or borrowings than it currently pays.
Liquidity Used in Stock Repurchases and Cash Dividends
Under the Company’s stock repurchase program, shares of OceanFirst Financial Corp. common stock may be purchased in the open market and through privately-negotiated transactions, from time-to-time, depending on market conditions. The repurchased shares are held as treasury stock for general corporate purposes. For the three and nine months ended September 30, 2025, the Company repurchased 2,308 and 1,404,253 shares of its common stock, respectively, totaling $42,000 and $24.4 million, respectively. Of these repurchased shares for the three and nine months ended September 30, 2025, 2,308 and 79,337 shares were repurchased outside of the Company’s stock repurchase program. The Company repurchased these shares from employees that elected to sell shares to cover their withholding tax obligations on vested stock awards and options. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares. At September 30, 2025, there were 3,226,284 shares available to be repurchased under the authorized stock repurchase program.
Cash dividends on common stock declared and paid during the nine months ended September 30, 2025 were $34.8 million. Cash dividends on preferred stock declared and paid during the nine months ended September 30, 2025 were $2.0 million. On May 15, 2025, the Company redeemed all 57,370 shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. The aggregate payment of $57.4 million, at a redemption price of $25.00 per share, resulted in a net loss on redemption of $1.8 million.
The Parent Company’s ability to continue to repurchase shares of common stock and pay dividends depends on capital distributions from the Bank, which may be adversely affected by capital restraints imposed by applicable regulations. If applicable regulations or regulators prevent the Bank from paying a dividend to the Parent Company, the Parent Company may not have the liquidity necessary to repurchase shares of common stock or pay a dividend in the future or pay a dividend at the same rate as historically paid or be able to meet current debt obligations. Additionally, regulations of the Federal Reserve may prevent the Parent Company from either paying or increasing the cash dividend to common stockholders. These regulatory policies may affect the ability of the Parent Company to pay dividends, repurchase shares of common stock, or otherwise engage in capital distributions.
Capital Management
The Company manages its capital sources, uses, and expected future needs through its Treasury function and the Asset Liability Committee. The Company has an internal policy that addresses capital and management monitors the adherence to policy limits to satisfy current and future capital needs. The policy includes internal limits, monitoring of key indicators, sources and availability, intercompany transactions, forecasts and stress testing, and other qualitative and quantitative metrics.
Additionally, management performs multiple capital stress test scenarios periodically, varying loan growth, earnings, access to the capital markets, credit losses, and mark-to-market losses in the investment portfolio, including both available-for-sale and held-to-maturity. As of September 30, 2025, the Bank and Company continued to maintain adequate capital under all stress scenarios. The Bank and the Parent Company also have detailed contingency capital plans and obtain comprehensive reporting of capital trends on a regular basis, which are reviewed by management and the Board.
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Regulatory Capital Requirements
As of September 30, 2025 and December 31, 2024, the Company and the Bank satisfied all regulatory capital requirements currently applicable as follows (dollars in thousands):
Actual For capital adequacy
purposes To be well-capitalized
under prompt
corrective action
As of September 30, 2025 Amount Ratio Amount Ratio Amount Ratio
Company:
Tier 1 capital (to average assets) $ 1,184,692 9.10 % $ 520,498 4.00 % N/A N/A
Common equity Tier 1 (to risk-weighted assets)
1,109,223 10.56 735,042 7.00 (1)
N/A N/A
Tier 1 capital (to risk-weighted assets) 1,184,692 11.28 892,551 8.50 (1)
N/A N/A
Total capital (to risk-weighted assets) 1,371,264 13.06 1,102,563 10.50 (1)
N/A N/A
Bank:
Tier 1 capital (to average assets) $ 1,172,077 9.07 % $ 516,930 4.00 % $ 646,163 5.00 %
Common equity Tier 1 (to risk-weighted assets)
1,172,077 11.27 728,132 7.00 (1)
676,123 6.50
Tier 1 capital (to risk-weighted assets) 1,172,077 11.27 884,160 8.50 (1)
832,151 8.00
Total capital (to risk-weighted assets) 1,258,649 12.10 1,092,198 10.50 (1)
1,040,189 10.00
As of December 31, 2024
Company:
Tier 1 capital (to average assets) $ 1,235,832 9.50 % $ 520,239 4.00 % N/A N/A
Common equity Tier 1 (to risk-weighted assets)
1,105,180 11.17 692,897 7.00 (1)
N/A N/A
Tier 1 capital (to risk-weighted assets) 1,235,832 12.49 841,375 8.50 (1)
N/A N/A
Total capital (to risk-weighted assets) 1,437,278 14.52 1,039,345 10.50 (1)
N/A N/A
Bank:
Tier 1 capital (to average assets) $ 1,161,564 8.99 % $ 516,798 4.00 % $ 645,998 5.00 %
Common equity Tier 1 (to risk-weighted assets)
1,161,564 11.83 687,383 7.00 (1)
638,284 6.50
Tier 1 capital (to risk-weighted assets) 1,161,564 11.83 834,679 8.50 (1)
785,580 8.00
Total capital (to risk-weighted assets) 1,238,011 12.61 1,031,074 10.50 (1)
981,975 10.00
(1) Includes the Capital Conservation Buffer of 2.50%.
At September 30, 2025 and December 31, 2024, the Company and the Bank satisfied the criteria to be “well-capitalized” under the Prompt Corrective Action regulations.
At September 30, 2025 and December 31, 2024, the Company maintained a stockholders’ equity to total assets ratio of 11.54% and 12.69%, respectively.
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Lending Activities
Loan Portfolio Composition . At September 30, 2025, the Company had total loans outstanding of $10.56 billion, of which $5.21 billion, or 49.4% of total loans, were investor owned commercial real estate, multi-family, and construction (including residential development loans), (collectively, “commercial real estate - investor”). The remainder of the portfolio consisted of commercial and industrial loans of which $997.1 million were commercial and industrial - real estate, or 9.4% of total loans; and $998.9 million were commercial and industrial - non-real estate loans, or 9.5% of total loans; $3.14 billion of residential real estate loans, or 29.7% of total loans; and $215.6 million of consumer loans, primarily home equity loans and lines of credit, or 2.0% of total loans.
In 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.
Commercial Real Estate - Investor Owne d . At September 30, 2025, the Bank’s total investor owned commercial real estate loans outstanding were $5.21 billion, or 49.4% of total loans, as compared to $5.29 billion, or 52.3% of total loans at December 31, 2024. Th e Bank originates investor owned commercial real estate loans that are secured by properties, or properties under construction, that are generally used for busin ess purposes such as office, industrial, multi-family, or retail facilities. A substantial majority of the Bank’s investor owned commercial real estate loans are located in its primary market area.
The Bank performs extensive due diligence in underwriting commercial real estate loans due to the larger loan amounts and the riskier nature of such loans. The Bank assesses and mitigates the risk in several ways, including inspection of all such properties and the review of the overall financial condition of the borrower and guarantors, which include, for example, the review of the rent rolls and applicable leases/lease terms and conditions and the verification of income. A tenant analysis and market analysis are part of the underwriting.
Investor owned commercial real estate loans are among the largest of the Bank’s loans and may have higher credit risk and lending spreads. Because repayment is often dependent on the successful management of the properties, repayment of commercial real estate loans may be affected by adverse conditions in the real estate market or the economy, and as a result, the Bank is particularly vigilant of this portfolio. The Bank believes this portfolio is highly diversified with loans secured by a variety of property types and the portfolio exhibits stable credit quality.
The following table presents the Company’s commercial real estate - investor owned loans by industry as of September 30, 2025:
As of September 30, 2025
(dollars in thousands) Amount Percent of Total Weighted Average LTV (1)
Weighted Average Debt Service Coverage Ratio (2)
Office $ 507,027 11 % 50 % 1.9x
Medical 270,755 6 56 1.8
Credit Tenant 256,764 6 65 1.6
Total Office (3)
1,034,546 23 55 1.8
Retail 1,044,292 23 52 1.9
Multi-family (4)
878,696 19 61 1.6
Industrial/warehouse 755,287 16 46 2.1
Hospitality 180,231 4 47 1.9
Other (5)
701,779 15 45 1.3
Total 4,594,831 100 % 52 1.8
Construction 616,389
Total CRE investor owned $ 5,211,220
(1) Represents the weighted average of loan balances as of September 30, 2025 divided by their most recent appraisal value, which is generally obtained at the time of origination.
(2) Represents the weighted average of net operating income on the property before debt service divided by the loan’s respective annual debt service based on the most recent credit review of the borrower.
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(3) Central business district (“CBD”) exposure represented $119 million, or 7.2%, of the total office loan balance at September 30, 2025. Office CBD loans had a weighted average LTV of 54% and weighted average debt service coverage ratio of 1.9x at September 30, 2025. $84 million, or 71%, of the total office CBD exposure are to credit tenants, life sciences and medical borrowers at September 30, 2025. New York City office CBD loans represented $7 million, or 0.05% of the Company’s total assets at September 30, 2025.
(4) New York City rent-regulated multi-family loans, where the property has more than 50% of its units rent-regulated, represented $30 million, or 0.21% of the Company’s total assets at September 30, 2025.
(5) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other.
The following table presents total commercial real estate - investor owned loans by geography (generally based on location of collateral) as of September 30, 2025:
As of September 30, 2025
(dollars in thousands) Amount Percent of Total
New York $ 1,405,833 31 %
Pennsylvania and Delaware 1,263,621 27
New Jersey 1,232,289 27
Massachusetts 127,571 3
Maryland and District of Columbia 143,949 3
Other 421,568 9
Total 4,594,831 100 %
Construction 616,389
Total CRE investor owned $ 5,211,220
Asset quality . The following table sets forth information regarding the Company’s non-performing assets, consisting of non-performing loans and other real estate acquired through foreclosure. It is the policy of the Company to cease accruing interest on loans 90 days or more past due or in the process of foreclosure.
September 30, December 31,
2025 2024
(dollars in thousands)
Non-performing assets (1) :
Commercial real estate – investor
$ 23,570 $ 17,000
Commercial and industrial:
Commercial and industrial - real estate 7,469 4,787
Commercial and industrial - non-real estate 394 32
Total commercial and industrial 7,863 4,819
Residential real estate (2)
7,334 10,644
Other consumer (2)
2,496 3,064
Total non-performing loans 41,263 35,527
Other real estate owned 7,498 1,811
Total non-performing assets $ 48,761 $ 37,338
Allowance for loan credit losses $ 81,236 $ 73,607
Allowance for unfunded commitments 4,636 3,264
PCD loans, net of allowance for loan credit losses
19,003 22,006
Delinquent loans 30-89 days 19,817 36,550
Allowance for loan credit losses as a percent of total loans (3)
0.77 % 0.73 %
Allowance for loan credit losses as a percent of total non-performing loans (3)
196.87 207.19
Non-performing loans as a percent of total loans receivable 0.39 0.35
Non-performing assets as a percent of total assets 0.34 0.28
(1) Non-performing assets consist of non-performing loans and real estate acquired through foreclosure. Non-performing loans consist of all loans 90 days or more past due and other loans in the process of foreclosure.
(2) The nine months ended September 30, 2025 included the sale of non-performing residential and consumer loans of $7.3 million.
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(3) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, were $4.4 million and $6.0 million at September 30, 2025 and December 31, 2024, respectively.
Overall asset quality metrics remained stable. The Company’s non-performing loans represented 0.39% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 196.87%, as compared to 207.19%. The level of 30 to 89 days delinquent loans decreased to $19.8 million, from $36.6 million. The Company’s other real estate owned increased to $7.5 million from $1.8 million, primarily due to one commercial loan. The Company’s allowance for loan credit losses to total loans was 0.77%, as compared to 0.73%.
The Company classifies loans (other than loans held-for-sale) and other real estate owned in accordance with regulatory guidelines. The table below represents Special Mention and Substandard loans (other than loans held-for-sale) and other real estate owned (in thousands):
September 30, December 31,
2025 2024
Special Mention $ 18,972 $ 54,524
Substandard 112,271 105,344
Total $ 131,243 $ 159,868
Special mention and substandard loans (other than loans held-for-sale) and other real estate owned decreased by $28.6 million to $131.2 million at September 30, 2025 from $159.9 million at December 31, 2024. Net migrations from special mention to substandard were primarily due to one commercial relationship totaling $21.3 million, which migrated during the nine months ended September 30, 2025. Additionally, net payoffs of substandard loans during the nine months ended September 30, 2025, primarily related to two commercial relationships totaling $15.1 million and upgrades from special mention loans primarily related to one commercial relationship totaling $10.8 million, during the same period.
Critical Accounting Policies and Estimates
Note 1 to the Company’s Audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), as supplemented by this report, contains a summary of significant accounting policies. Various elements of these accounting policies, by their nature, are subject to estimation techniques, valuation assumptions and other subjective assessments. Certain assets are carried on the consolidated statements of financial condition at estimated fair value or the lower of cost or estimated fair value.
Policies with respect to the methodology used to determine the allowance for credit losses is a critical accounting policy and estimate because of its importance to the presentation of the Company’s financial condition and results of operations and high level of subjectivity. A critical accounting policy involves a higher degree of complexity and requires management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions, and estimates could result in material differences in the results of operations or financial condition. The critical accounting policy and its application is reviewed periodically, and at least annually, with the Audit Committee of the Board of Directors.
Goodwill in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other, was a critical accounting estimate in the preparation of the consolidated financial statements at September 30, 2025 and December 31, 2024. The Company bypassed the qualitative assessment and proceeded directly to the quantitative test on its annual impairment testing date of August 31, 2025. The Company estimated fair value of equity using the market capitalization method of the market approach, consideration of initiatives unknown by the market and evaluation of any implied control premium. The results of the quantitative assessment indicated that the fair value of the Company’s reporting unit exceeded its carrying amount, which resulted in no impairment loss at August 31, 2025.
Significant negative industry or economic trends, including declines in the market price of the Company’s stock, reduced estimates of future cash flows or business disruptions could result in impairments to goodwill in the future, which may result in recording an impairment loss. Any resulting impairment loss may have a material adverse impact on the Company’s financial condition and results of operations and is considered a non-cash event with no impact to the Company’s regulatory capital ratios, liquidity position, and ongoing operations.
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Management continued to carefully assess and evaluate all available information for potential triggering events after the August 31 annual testing date, and concluded no triggering events were identified subsequent to the annual test date. Management will continue evaluating the economic conditions at future reporting periods for triggering events.
Impact of New Accounting Pronouncements
Accounting Pronouncements Adopted in 2025
In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, “Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement”. The amendments in this ASU require that a joint venture, upon formation, apply a new basis of accounting and initially measure assets and liabilities at fair value, with exceptions to fair value measurement that are consistent with the business combinations guidance. This update will be effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Early adoption is permitted. The adoption of this standard did not have an impact on the Company’s consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
In December 2023, FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The amendments in this ASU require improved annual income tax disclosures surrounding rate reconciliation, income taxes paid, and other disclosures. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect this standard to have a material impact on the Company’s consolidated financial statements.
In November 2024, FASB issued ASU 2024-03 “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)”. The amendments in this ASU require expanded disclosure and disaggregation of certain costs and expenses including, but not limited to, purchases of inventory, employee compensation, depreciation, depletion, and amortization. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on the consolidated financial statements.
In November 2024, FASB issued ASU 2024-04, “Debt - Debt with Conversion and Other Options (Subtopic 470-20)”. The amendments in this ASU clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2025, and for interim periods beginning after December 15, 2026. Early adoption is permitted. Currently, this ASU does not have any impact to the consolidated financial statements.
In May 2025, FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810)”. The amendments in this ASU require an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquired is a variable interest entity, to determine which entity is the accounting acquirer. The amendment requires that an entity apply the new guidance prospectively to any acquisition transaction that occurs after the initial application date. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company does not expect this standard to have a material impact on the Company’s consolidated financial statements.
In September 2025, FASB issued ASU 2025-06, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)”. The amendments in this ASU remove all references to prescriptive and sequential software development stages and provides disclosure requirements for related capitalized costs. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. Currently this ASU does not have any impact to the consolidated financial statements.
In September 2025, FASB issued ASU 2025-07, “Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)”. The amendments in this ASU, related to Topic 815, exclude from derivative accounting any non-exchange traded contracts that are based on operations or activities specific to contracted parties, while providing specific exceptions to this exclusion. The amendments in this ASU, related to Topic 606, clarify that an entity should apply Topic 606 guidance to contracts with share-based noncash consideration from a customer in a revenue contract. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2026, and for interim periods within those annual reporting periods. Early adoption is permitted. Topic 606 is not applicable to the Company. The Company is currently evaluating the impact of the standard for Topic 815 on the consolidated financial statements.
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Private Securities Litigation Reform Act Safe Harbor Statement
In addition to historical information, this quarterly report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, the effects of the federal government shutdown, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in investor sentiment and consumer spending, borrowing and savings habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations.
These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings. These risks should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.