EX-99.1 2 ex991-earningsreleasejune2.htm EX-99.1 Document

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Press Release
Exhibit 99.1
Company Contact:                                        
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 7507
Email: pbarrett@oceanfirst.com


FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES SECOND QUARTER
FINANCIAL RESULTS
    RED BANK, NEW JERSEY, July 20, 2023 - OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $26.8 million, or $0.45 per diluted share, for the three months ended June 30, 2023, as compared to $28.0 million, or $0.47 per diluted share, for the corresponding prior year period, and $26.9 million, or $0.46 per diluted share, for the prior linked quarter. For the six months ended June 30, 2023, the Company reported net income available to common stockholders of $53.7 million, or $0.91 per diluted share, as compared to $52.7 million, or $0.89 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Six Months Ended,
Performance Ratios (Annualized):June 30,March 31,June 30,June 30,June 30,
20232023202220232022
Return on average assets 0.80 %0.82 %0.92 %0.81 %0.88 %
Return on average stockholders’ equity6.61 6.77 7.31 6.69 6.94 
Return on average tangible stockholders’ equity (a)
9.70 10.00 11.08 9.84 10.52 
Return on average tangible common equity (a)
10.21 10.53 11.72 10.37 11.13 
Efficiency ratio62.28 60.78 59.65 61.53 60.68 
Net interest margin3.02 3.34 3.29 3.17 3.24 
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”), which are non-GAAP (“generally accepted accounting principles”) financial measures, exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.



Core earnings1 for the three and six months ended June 30, 2023 were $27.2 million and $59.9 million, respectively, or $0.46 and $1.01 per diluted share, representing a decrease from $34.6 million and $63.4 million, or $0.59 and $1.08 per diluted share, for the corresponding prior year periods, and a decrease from $32.7 million, or $0.55 per diluted share, for the prior linked quarter.
Core earnings PTPP1 for the three and six months ended June 30, 2023 were $37.6 million and $83.7 million, respectively, or $0.64 and $1.42 per diluted share, as compared to $47.0 million and $86.7 million, or $0.80 and $1.47 per diluted share, for the corresponding prior year periods, and $46.1 million, or $0.78 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,For the Six Months Ended,
June 30,March 31,June 30,June 30,June 30,
Core Ratios1 (Annualized):
20232023202220232022
Return on average assets 0.81 %1.00 %1.13 %0.90 %1.06 %
Return on average tangible stockholders’ equity9.84 12.15 13.73 10.98 12.65 
Return on average tangible common equity10.36 12.80 14.53 11.56 13.38 
Efficiency ratio61.94 56.49 54.43 59.13 55.89 
Core diluted earnings per share$0.46 $0.55 $0.59 $1.01 $1.08 
Core PTPP diluted earnings per share 0.64 0.78 0.80 1.42 1.47 

1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP or Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation (benefit) expense, net loss (gain) on equity investments, net loss on sale of investments, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (benefit). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
2

Key developments for the recent quarter are described below:
•Excess Liquidity: The Company maintained elevated levels of on-balance sheet cash and funding availability, which represented 260% of adjusted uninsured deposits2 at June 30, 2023. Deposits increased $165.2 million during the quarter, which included a shift from non-maturity deposits to time deposits.
•Asset Quality: Continued strong asset quality as criticized assets, non-performing loans, and loans 30 to 89 days past due as a percent of total loans receivable were 1.18%, 0.23%, and 0.03%, respectively, at June 30, 2023. Net charge-off activity continues to remain at zero percent of total average loans on an annualized basis.
•Strong Capital: Capital ratios remained above “well-capitalized” levels, including the Company’s common equity tier 1 capital, which increased 19 bps from the prior quarter, to 10.21% at June 30, 2023. Book value and tangible book value per share were $27.37 and $17.723, respectively, both up $0.30 from the prior quarter.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our current quarter results were impacted by continued prudent balance sheet measures to increase liquidity, preserve our deposits, and continue supporting our existing banking relationships. We are optimistic that the pace of margin compression is behind us, but the outlook is uncertain should rates and competition remain elevated for longer. Although profitability decreased, our credit quality remains stellar, we grew capital, and remain well positioned to manage through any market uncertainty.” Mr. Maher added, “Our strong balance sheet will serve as a catalyst for our strategic initiatives and investments to improve our operating expenses. These initiatives are anticipated to improve performance as early as the fourth quarter and should enhance returns in future periods.”
2 For additional information, refer to Earnings Release Supplement furnished as Exhibit 99.2 to Form 8-K filed with the SEC on July 20, 2023.
3 Tangible book value per common share (also referred to as “tangible common equity per common share”) and tangible common equity to tangible assets, non-GAAP financial measures, exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
3

The Company’s Board of Directors declared its 106th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 18, 2023 to common stockholders of record on August 7, 2023. The Board declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on August 15, 2023 to preferred stockholders of record on July 31, 2023.
Results of Operations
The current quarter results were impacted by the following matters. Net interest income and cost of funds were adversely impacted by shifts to higher cost time deposits, repricing of government deposits, and maintaining excess liquidity on balance sheet, which outpaced the increase in interest-earning assets, driving an increase in deposit betas to 29%4. Total operating expenses included $580,000 of real estate charges on assets held for sale and $400,000 of talent acquisition retainers, which are not expected to reoccur.

Net Interest Income and Margin
Three Months Ended June 30, 2023 vs. June 30, 2022
Net interest income increased to $92.1 million, from $90.8 million, reflecting a net impact of higher interest rates and to a lesser extent, an increase in average interest-earning assets.
Net interest margin decreased to 3.02% from 3.29%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.17% for the respective three months, net interest margin decreased to 2.97% from 3.12%. Net interest margin decreased primarily due to the
4 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021).
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increase in cost of funds outpacing that of average interest earning assets in the current interest rate environment.
Average interest-earning assets increased by $1.17 billion for the three months, primarily driven by organic commercial loan growth, which increased $634.2 million. The average yield for interest-earning assets increased to 4.91% from 3.60%.
The cost of average interest-bearing liabilities increased to 2.41%, from 0.42% due to higher cost of deposits noted above and higher cost Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits (including non-interest bearing deposits) increased to 1.52% from 0.18%.
Six months ended June 30, 2023 vs. June 30, 2022
Net interest income increased to $190.9 million, from $175.0 million, reflecting a net impact of higher interest rates and to a lesser extent, an increase in average interest-earning assets.
Net interest margin decreased to 3.17% from 3.24%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.15% for the respective six months, net interest margin increased to 3.13% from 3.09%.
Average interest-earning assets increased by $1.22 billion. The cost of average interest-bearing liabilities increased to 2.10% from 0.39%. The total cost of deposits (including non-interest bearing deposits) increased to 1.21% from 0.17%.
Three Months Ended June 30, 2023 vs. March 31, 2023
Net interest income decreased by $6.7 million, reflecting a decrease in net interest margin to 3.02%, from 3.34%, as the increase in cost of funds outpaced the increase of average interest earning assets. Excluding the impact of purchase accounting accretion and prepayment fees of 0.05% and 0.04% for the respective three months, net interest margin decreased to 2.97%, from 3.30%. The compression in net interest margin was primarily attributable to higher cost of deposits noted above, a mix-shift to higher cost time deposits, and the impact of excess on-balance sheet liquidity built in the prior quarter.
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Average interest-earning assets increased by $240.0 million, primarily due to maintaining excess liquidity during the quarter and, to a lesser extent, commercial loan growth. The yield on average interest-earning assets increased to 4.91%, from 4.68%. The total cost of average interest-bearing liabilities increased to 2.41%, from 1.76%, and the total cost of deposits (including non-interest bearing deposits) increased to 1.52% from 0.88%, primarily due to higher cost of deposits and a mix-shift to higher cost time deposits.
Provision for Credit Losses
    Provision for credit losses for the three and six months ended June 30, 2023 was $1.2 million and $4.2 million, respectively, as compared to $1.3 million and $3.1 million for the corresponding prior year periods, and $3.0 million in the prior linked quarter. The provision for credit losses for the current quarter reflected an increase to the allowance for loan credit losses, primarily related to commercial real estate, which was driven by sustained macroeconomic headwinds.
Net loan charge-offs were $123,000 and $76,000 for the three and six months ended June 30, 2023, respectively. Net loan charge-offs were $9,000 and net loan recoveries were $83,000 for the three and six months ended June 30, 2022, respectively. Net loan recoveries were $47,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.
Non-interest Income
Three Months Ended June 30, 2023 vs. June 30, 2022    
Other income increased to $8.9 million, as compared to $7.5 million. Other income was adversely impacted by non-core operations of $559,000 and $8.1 million, for the respective quarters, primarily related to net losses on preferred stock equity investments.
Excluding non-core operations, other income decreased $6.1 million. The primary drivers were decreases in commercial loan swap income of $2.3 million and fees and service charges of $2.0 million, which were adversely impacted by the current interest rate environment resulting in lower swap volume
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and mortgage activity. Bankcard services revenue decreased $1.8 million due to the Durbin amendment, which became effective for the Company on July 1, 2022.
Six months ended June 30, 2023 vs. June 30, 2022
Other income decreased to $11.0 million, as compared to $16.4 million. Other income was adversely impacted by non-core operations of $8.1 million and $10.9 million, for the respective periods, primarily related to net losses on preferred stock equity investments. The current year’s non-core operations also included $5.3 million of losses related to the sale of investments in the first quarter.
Excluding non-core operations, other income decreased $8.2 million. The primary drivers were decreases in commercial loan swap income on lower volume of $4.4 million, bankcard services revenue of $3.4 million, and income from bank owned life insurance of $1.1 million on lower claims.
Three Months Ended June 30, 2023 vs. March 31, 2023
Other income in the prior linked quarter included non-core operations of $7.5 million primarily related to net losses on preferred stock equity investments. Excluding non-core operations, other income decreased by $84,000.
Non-interest Expense
Three Months Ended June 30, 2023 vs. June 30, 2022
Operating expenses increased to $62.9 million, as compared to $58.7 million. Operating expenses were adversely impacted by $742,000 of non-core operations in the prior year period.
Excluding non-core operations, operating expenses increased by $5.0 million. This was due to increases in professional fees of $2.6 million related to the ongoing investments to improve profitability and operational efficiencies, and compensation and benefits expense of $1.1 million primarily related to inflation, annual merit-related compensation increases and higher medical costs. The current quarter also included increases to federal deposit insurance and regulatory assessments of $677,000 due to new
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assessment rates that went into effect on January 1, 2023, and real estate charges on assets held for sale of $580,000.
Six months ended June 30, 2023 vs. June 30, 2022
Operating expenses increased to $124.2 million, as compared to $116.2 million. Operating expenses for the periods were adversely impacted by $92,000 and $3.1 million of non-core operations, respectively.
Excluding non-core operations, operating expenses increased by $11.1 million. This was due to increases in professional fees of $4.4 million and compensation and benefits expense of $4.3 million. The drivers of expenses for the three months ended were also the drivers for the six months ended. Additionally, other operating expenses included higher expenses of $580,000 and $427,000 related to real estate charges on assets held for sale and title search fees, respectively.
Three Months Ended June 30, 2023 vs. March 31, 2023
Excluding non-core operations of $92,000 in the prior linked quarter, operating expenses increased $1.7 million primarily due to increases in other operating expense of $898,000, related to real estate charges of $580,000, and federal deposit insurance and regulatory assessments of $716,000, primarily due to the one-time recovery of $661,000 for historical overpayments which was recognized in the prior linked quarter.
Income Tax Expense
The provision for income taxes was $9.0 million and $17.7 million for the three and six months ended June 30, 2023, respectively, as compared to $8.9 million and $16.9 million for the same prior year periods, and $8.7 million for the prior linked quarter. The effective tax rate was 24.4% and 24.0% for the three and six months ended June 30, 2023, respectively, as compared to 23.3% and 23.4% for the same prior year periods, and 23.7% for the prior linked quarter.
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Financial Condition
June 30, 2023 vs. December 31, 2022
Total assets increased by $435.0 million to $13.54 billion, from $13.10 billion, due to higher cash and due from banks and loans. Cash and due from banks increased $289.8 million to $457.7 million, from $167.9 million as the Company maintained excess liquidity on balance sheet. Total loans increased by $165.6 million to $10.08 billion, from $9.92 billion, due to loan originations.
    Total liabilities increased by $394.2 million to $11.91 billion, from $11.52 billion. Deposits increased by $483.1 million to $10.16 billion, from $9.68 billion. Time deposits increased to $2.77 billion from $1.54 billion, or 27.2% and 15.9% of total deposits, respectively. Brokered time deposits increased $547.9 million and retail time deposits increased $674.9 million. The loans-to-deposit ratio was 99.3%, as compared to 102.50%. FHLB advances decreased by $119.5 million to $1.09 billion, from $1.21 billion.
    Total stockholders’ equity increased to $1.63 billion, as compared to $1.59 billion, reflecting net income for the six months ended June 30, 2023 and a net increase in the fair market value of available-for-sale debt securities, net of tax, which decreased accumulated other comprehensive loss by $5.6 million.
For the six months ended June 30, 2023, the Company did not repurchase shares under its stock repurchase program. There were 2,934,438 shares available for repurchase at June 30, 2023 under the existing repurchase program. Stockholders’ equity per common share5 increased to $27.37, as compared to $26.81. Tangible common equity per common share3 increased to $17.72, as compared to $17.08.
5 Also referred to as “book value per common share.”
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Asset Quality
June 30, 2023 vs. December 31, 2022
The Company's asset quality remained strong, as evidenced by the following credit metrics. The Company’s non-performing loans decreased to $22.8 million from $23.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 271.51%, as compared to 244.25%. The level of 30 to 89 days delinquent loans decreased to $3.1 million, from $14.1 million, partly due to the number of days in each period. The Company’s allowance for loan credit losses was 0.61% of total loans, as compared to 0.57%. Refer to “Provision for Credit Losses” section for further discussion on the allowance.
The Company’s asset quality excluding purchased with credit deterioration (“PCD”) loans were as follows. Non-performing loans increased to $19.6 million, from $19.3 million. The allowance for loan credit losses as a percentage of total non-performing loans was 315.47%, as compared to 294.10%. The level of 30 to 89 days delinquent loans decreased to $1.2 million, from $10.5 million, partly due to the number of days in each period. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $71.5 million, or 0.71% of total loans, as compared to $68.2 million, or 0.69% of total loans.
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Explanation of Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, July 21, 2023 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 845952. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 307056, from one hour after the end of the call until August 18, 2023. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
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    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.5 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

Forward-Looking Statements
    
In addition to historical information, this news release 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, potential recessionary conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, 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, changes in liquidity, including the size and composition of the Company’s deposit portfolio, including the percentage of uninsured deposits in the portfolio, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving 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 the COVID-19 pandemic or any other pandemic 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, 2022, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and 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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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)

June 30,March 31,December 31,June 30,
2023202320222022
(Unaudited)(Unaudited)(Unaudited)
Assets
Cash and due from banks$457,747 $496,193 $167,946 $189,019 
Debt securities available-for-sale, at estimated fair value452,016 452,195 457,648 507,276 
Debt securities held-to-maturity, net of allowance for securities credit losses of $964 at June 30, 2023, $1,043 at March 31, 2023, $1,128 at December 31, 2022, and $1,293 at June 30, 2022 (estimated fair value of $1,109,756 at June 30, 2023, $1,149,673 at March 31, 2023, $1,110,041 at December 31, 2022 and $987,532 at June 30, 2022)
1,222,507 1,245,424 1,221,138 1,068,034 
Equity investments96,452 101,007 102,037 75,269 
Restricted equity investments, at cost105,305 115,750 109,278 76,047 
Loans receivable, net of allowance for loan credit losses of $61,791 at June 30, 2023, $60,195 at March 31, 2023, $56,824 at December 31, 2022 and $52,061 at June 30, 2022
10,030,106 9,986,949 9,868,718 9,380,688 
Loans held-for-sale4,200 1,885 690 — 
Interest and dividends receivable47,933 47,342 44,704 34,184 
Premises and equipment, net124,139 126,019 126,705 128,118 
Bank owned life insurance263,836 262,654 261,603 260,230 
Assets held for sale3,608 2,719 2,719 4,263 
Goodwill506,146 506,146 506,146 506,146 
Core deposit intangible11,476 12,470 13,497 15,827 
Other assets213,432 198,422 221,067 193,552 
Total assets$13,538,903 $13,555,175 $13,103,896 $12,438,653 
Liabilities and Stockholders’ Equity
Deposits$10,158,337 $9,993,095 $9,675,206 $9,831,484 
Federal Home Loan Bank advances1,091,666 1,346,566 1,211,166 488,750 
Securities sold under agreements to repurchase with customers74,452 70,938 69,097 105,495 
Other borrowings195,925 195,663 195,403 194,654 
Advances by borrowers for taxes and insurance27,839 31,198 21,405 23,640 
Other liabilities364,401 307,344 346,155 273,198 
Total liabilities11,912,620 11,944,804 11,518,432 10,917,221 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,625,435 1,609,553 1,584,662 1,520,488 
Non-controlling interest848 818 802 944 
Total stockholders’ equity1,626,283 1,610,371 1,585,464 1,521,432 
Total liabilities and stockholders’ equity$13,538,903 $13,555,175 $13,103,896 $12,438,653 













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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months Ended,For the Six Months Ended,
June 30,March 31,June 30,June 30,June 30,
20232023202220232022
|---------------------- (Unaudited) ----------------------||---------- (Unaudited) -----------|
Interest income:
Loans$129,104 $121,720 $90,731 $250,824 $173,199 
Debt securities14,320 14,286 7,473 28,606 14,977 
Equity investments and other6,672 3,028 1,212 9,700 2,223 
Total interest income150,096 139,034 99,416 289,130 190,399 
Interest expense:
Deposits37,934 21,330 4,317 59,264 8,358 
Borrowed funds20,053 18,902 4,302 38,955 7,017 
Total interest expense57,987 40,232 8,619 98,219 15,375 
Net interest income92,109 98,802 90,797 190,911 175,024 
Provision for credit losses1,229 3,013 1,254 4,242 3,105 
Net interest income after provision for credit losses90,880 95,789 89,543 186,669 171,919 
Other income:
Bankcard services revenue1,544 1,330 3,310 2,874 6,273 
Trust and asset management revenue645 612 658 1,257 1,267 
Fees and service charges5,602 5,159 7,646 10,761 10,706 
Net gain on sales of loans33 20 3 53 180 
Net loss on equity investments(559)(6,801)(8,078)(7,360)(10,864)
Net gain from other real estate operations— — 50 — 48 
Income from bank owned life insurance1,182 1,281 1,422 2,463 3,525 
Commercial loan swap income— 701 2,294 701 5,075 
Other481 (229)236 252 183 
Total other income8,928 2,073 7,541 11,001 16,393 
Operating expenses:
Compensation and employee benefits34,222 33,920 33,153 68,142 63,848 
Occupancy5,265 5,239 4,758 10,504 10,502 
Equipment1,101 1,205 1,336 2,306 2,706 
Marketing961 982 971 1,943 1,587 
Federal deposit insurance and regulatory assessments2,465 1,749 1,788 4,214 3,678 
Data processing6,165 6,154 6,170 12,319 11,906 
Check card processing1,214 1,281 1,515 2,495 2,497 
Professional fees5,083 5,098 2,472 10,181 5,794 
Amortization of core deposit intangible994 1,027 1,178 2,021 2,388 
Branch consolidation expense, net— 70 546 70 948 
Merger related expenses— 22 196 22 2,161 
Other operating expense5,460 4,562 4,578 10,022 8,141 
Total operating expenses62,930 61,309 58,661 124,239 116,156 
Income before provision for income taxes36,878 36,553 38,423 73,431 72,156 
Provision for income taxes8,996 8,654 8,940 17,650 16,914 
Net income27,882 27,899 29,483 55,781 55,242 
Net income attributable to non-controlling interest85 16 522 101 522 
Net income attributable to OceanFirst Financial Corp.27,797 27,883 28,961 55,680 54,720 
Dividends on preferred shares1,004 1,004 1,004 2,008 2,008 
Net income available to common stockholders$26,793 $26,879 $27,957 $53,672 $52,712 
Basic earnings per share$0.45 $0.46 $0.48 $0.91 $0.90 
Diluted earnings per share$0.45 $0.46 $0.47 $0.91 $0.89 
Average basic shares outstanding59,147 58,774 58,894 58,988 58,823 
Average diluted shares outstanding59,153 58,918 58,995 59,038 58,975 
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OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Commercial:
Commercial real estate - investor$5,319,686 $5,296,661 $5,171,952 $5,007,637 $4,808,965 
Commercial real estate - owner-occupied981,618 986,366 997,367 983,784 1,020,873 
Commercial and industrial620,284 622,201 622,372 652,620 584,464 
Total commercial6,921,588 6,905,228 6,791,691 6,644,041 6,414,302 
Consumer:
Residential real estate2,906,556 2,881,811 2,861,991 2,813,209 2,758,269 
Home equity loans and lines and other consumer ("other consumer")255,486 252,773 264,372 261,510 252,314 
Total consumer3,162,042 3,134,584 3,126,363 3,074,719 3,010,583 
Total loans10,083,630 10,039,812 9,918,054 9,718,760 9,424,885 
Deferred origination costs (fees), net8,267 7,332 7,488 7,249 7,864 
Allowance for loan credit losses(61,791)(60,195)(56,824)(53,521)(52,061)
Loans receivable, net$10,030,106 $9,986,949 $9,868,718 $9,672,488 $9,380,688 
Mortgage loans serviced for others$50,820 $50,421 $51,736 $53,869 $56,045 
At June 30, 2023 Average Yield
Loan pipeline (1):
Commercial7.71 %$39,164 $236,550 $114,232 $339,487 $273,843 
Residential real estate6.82 58,022 61,258 36,958 80,591 104,920 
Other consumer7.51 18,621 20,589 14,890 19,395 6,278 
Total7.23 %$115,807 $318,397 $166,080 $439,473 $385,041 
For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Average Yield
Loan originations:
Commercial7.60 %$197,732 $200,504 $539,949 $356,726 $645,863 
Residential real estate6.40 100,542 65,580 101,530 
(2)
129,808 173,365 
Other consumer7.21 22,487 15,927 42,624 57,254 16,253 
Total7.20 %$320,761 $282,011 $684,103 $543,788 $835,481 
Loans sold$18,664 

$3,861 $2,340 $9,425 
(3)
$— 
(1)Loan pipeline includes loans approved but not funded.
(2)Excludes residential real estate loan pool purchases of $9.9 million for the three months ended December 31, 2022.
(3)Excludes the sale of a small business administration loan of $1.2 million for the three months ended September 30, 2022.    
DEPOSITSAt
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Type of Account
Non-interest-bearing$1,854,136 $1,984,197 $2,101,308 $2,325,547 $2,312,126 
Interest-bearing checking3,537,834 3,697,223 3,829,683 3,909,864 3,696,067 
Money market770,440 615,993 714,386 749,229 716,782 
Savings1,229,897 1,308,715 1,487,809 1,570,472 1,606,534 
Time deposits2,766,030 2,386,967 1,542,020 1,404,357 1,499,975 
  Total deposits$10,158,337 $9,993,095 $9,675,206 $9,959,469 $9,831,484 


15


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITYJune 30,March 31,December 31,September 30,June 30,
20232023202220222022
Non-performing loans:
Commercial real estate - investor$13,000 $13,643 $10,483 $9,866 $2,609 
Commercial real estate - owner-occupied565 251 4,025 1,976 8,233 
Commercial and industrial199 162 331 321 364 
Residential real estate6,174 5,650 5,969 5,958 5,846 
Other consumer2,820 2,731 2,457 3,377 3,701 
Total non-performing loans$22,758 $22,437 $23,265 $21,498 $20,753 
Delinquent loans 30 to 89 days$3,136 $11,232 $14,148 $11,846 $9,558 
Modifications to borrowers experiencing financial difficulty (1)
Non-performing (included in total non-performing loans above)$6,882 $6,556 $6,361 $10,047 $10,493 
Performing7,516 7,619 7,530 6,065 6,946 
Total modifications to borrowers experiencing financial difficulty (1)
$14,398 $14,175 $13,891 $16,112 $17,439 
Allowance for loan credit losses$61,791 $60,195 $56,824 $53,521 $52,061 
Allowance for loan credit losses as a percent of total loans receivable (2)
0.61 %0.60 %0.57 %0.55 %0.55 %
Allowance for loan credit losses as a percent of total non-performing loans (2)
271.51 268.28 244.25 248.96 250.86 
Non-performing loans as a percent of total loans receivable0.23 0.22 0.23 0.22 0.22 
Non-performing assets as a percent of total assets0.17 0.17 0.18 0.17 0.17 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$18,872 $20,513 $27,129 $29,249 $35,227 
Non-performing PCD loans3,171 3,929 3,944 3,043 3,529 
Delinquent PCD and non-performing loans 30 to 89 days1,976 2,248 3,657 1,434 1,381 
PCD modifications to borrowers experiencing financial difficulty (1)
755 758 765 715 997 
Asset quality, excluding PCD loans (3)
Non-performing loans19,587 18,508 19,321 18,455 17,224 
Delinquent loans 30 to 89 days (excludes non-performing loans)
1,160 8,984 10,491 10,412 8,177 
Modifications to borrowers experiencing financial difficulty(1)
13,643 13,417 13,126 15,397 16,442 
Allowance for loan credit losses as a percent of total non-performing loans (2)
315.47 %325.24 %294.10 %290.01 %302.26 %
Non-performing loans as a percent of total loans receivable
0.19 0.18 0.19 0.19 0.18 
Non-performing assets as a percent of total assets0.14 0.14 0.15 0.15 0.14 
(1)For periods in 2023, balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings. For periods in 2022, the balances only include troubled debt restructurings.
(2)Loans acquired from prior bank 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, was $9.8 million, $10.5 million, $11.4 million, $13.6 million and $15.5 million at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively.
(3)All balances and ratios exclude PCD loans.












16

(continued)

NET LOAN (CHARGE-OFFS) RECOVERIESFor the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Net loan (charge-offs) recoveries:
Loan charge-offs$(206)$(10)$(138)$(5)$(287)
Recoveries on loans83 57 143 257 278 
Net loan (charge-offs) recoveries$(123)

$47 $5 $252 $(9)
Net loan (charge-offs) recoveries to average total loans (annualized)— %NM*NM*NM*— %
Net loan (charge-offs) recoveries detail:
Commercial$(117)$— $(46)$117 $154 
Residential real estate9 8 9 44 (47)
Other consumer(15)39 42 91 (116)
Net loan (charge-offs) recoveries$(123)$47 $5 $252 $(9)
* Not meaningful as amounts are net loan recoveries.



17

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
For the Three Months Ended
June 30,March 31,June 30,
202320232022
(dollars in thousands)Average
Balance		Interest
Average
Yield/
Cost (1)
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$308,238 $4,283 5.57 %$129,740 $938 2.93 %$67,440 $100 0.59 %
Securities (2)
1,931,032 16,709 3.47 1,955,399 16,376 3.40 1,811,869 8,585 1.90 
Loans receivable, net (3)
Commercial6,912,698 99,350 5.76 6,840,006 92,780 5.50 6,278,465 65,390 4.18 
Residential real estate2,895,629 25,936 3.58 2,872,049 25,161 3.50 2,718,787 22,742 3.35 
Other consumer255,785 3,818 5.99 263,404 3,779 5.82 251,014 2,599 4.15 
Allowance for loan credit losses, net of deferred loan costs and fees(53,327)— — (50,554)— — (43,683)— — 
Loans receivable, net10,010,785 129,104 5.17 9,924,905 121,720 4.96 9,204,583 90,731 3.95 
Total interest-earning assets12,250,055 150,096 4.91 12,010,044 139,034 4.68 11,083,892 99,416 3.60 
Non-interest-earning assets1,217,666 1,234,549 1,168,093 
Total assets$13,467,721 $13,244,593 $12,251,985 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,718,289 11,964 1.29 %$3,863,338 6,269 0.66 %$4,020,474 1,612 0.16 %
Money market694,311 3,678 2.12 705,631 1,759 1.01 739,647 279 0.15 
Savings1,248,312 389 0.12 1,369,118 334 0.10 1,639,568 161 0.04 
Time deposits2,458,872 21,903 3.57 1,826,662 12,968 2.88 937,387 2,265 0.97 
Total8,119,784 37,934 1.87 7,764,749 21,330 1.11 7,337,076 4,317 0.24 
FHLB Advances1,246,914 15,406 4.96 1,222,791 14,614 4.85 538,754 1,647 1.23 
Securities sold under agreements to repurchase71,752 192 1.07 71,898 90 0.51 103,929 41 0.16 
Other borrowings195,754 4,455 9.13 212,159 4,198 8.02 194,481 2,614 5.39 
Total borrowings1,514,420 20,053 5.31 1,506,848 18,902 5.09 837,164 4,302 2.06 
Total interest-bearing liabilities9,634,204 57,987 2.41 9,271,597 40,232 1.76 8,174,240 8,619 0.42 
Non-interest-bearing deposits1,873,226 2,028,507 2,328,124 
Non-interest-bearing liabilities333,598 334,812 214,900 
Total liabilities11,841,028 11,634,916 10,717,264 
Stockholders’ equity1,626,693 1,609,677 1,534,721 
Total liabilities and equity$13,467,721 $13,244,593 $12,251,985 
Net interest income$92,109 $98,802 $90,797 
Net interest rate spread (4)
2.50 %2.92 %3.18 %
Net interest margin (5)
3.02 %3.34 %3.29 %
Total cost of deposits (including non-interest-bearing deposits)1.52 %0.88 %0.18 %





18

(continued)
For the Six Months Ended June 30,
 20232022
(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$219,482 $5,221 4.80 %$78,074 $136 0.35 %
Securities (2)
1,943,148 33,085 3.43 1,829,065 17,064 1.88 
Loans receivable, net (3)
Commercial6,876,553 192,130 5.63 6,157,060 123,745 4.05 
Residential real estate2,883,904 51,097 3.54 2,631,208 44,081 3.35 
Other consumer259,573 7,597 5.90 254,002 5,373 4.27 
Allowance for loan credit losses, net of deferred loan costs and fees(51,948)— — (42,080)— — 
Loans receivable, net9,968,082 250,824 5.07 9,000,190 173,199 3.87 
Total interest-earning assets12,130,712 289,130 4.80 10,907,329 190,399 3.51 
Non-interest-earning assets1,226,061 1,191,453 
Total assets$13,356,773 $12,098,782 
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,790,413 18,234 0.97 %$4,197,935 3,762 0.18 %
Money market699,940 5,437 1.57 763,721 596 0.16 
Savings1,308,381 723 0.11 1,624,575 286 0.04 
Time deposits2,144,514 34,870 3.28 853,017 3,714 0.88 
Total7,943,248 59,264 1.50 7,439,248 8,358 0.23 
FHLB Advances1,234,919 29,824 4.87 285,501 1,682 1.19 
Securities sold under agreements to repurchase71,825 282 0.79 110,738 83 0.15 
Other borrowings203,911 8,849 8.75 211,407 5,252 5.01 
Total borrowings1,510,655 38,955 5.20 607,646 7,017 2.33 
Total interest-bearing liabilities9,453,903 98,219 2.10 8,046,894 15,375 0.39 
Non-interest-bearing deposits1,950,437 2,364,757 
Non-interest-bearing liabilities334,201 155,832 
Total liabilities11,738,541 10,567,483 
Stockholders’ equity1,618,232 1,531,299 
Total liabilities and equity$13,356,773 $12,098,782 
Net interest income$190,911 $175,024 
Net interest rate spread (4)
2.70 %3.12 %
Net interest margin (5)
3.17 %3.24 %
Total cost of deposits (including non-interest-bearing deposits)1.21 %0.17 %
(1)    Average yields and costs are annualized.
(2)    Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank 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.





19

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Selected Financial Condition Data:
Total assets$13,538,903 $13,555,175 $13,103,896 $12,683,453 $12,438,653 
Debt securities available-for-sale, at estimated fair value
452,016 452,195 457,648 470,300 507,276 
Debt securities held-to-maturity, net of allowance for securities credit losses1,222,507 1,245,424 1,221,138 1,027,712 1,068,034 
Equity investments96,452 101,007 102,037 81,722 75,269 
Restricted equity investments, at cost105,305 115,750 109,278 77,556 76,047 
Loans receivable, net of allowance for loan credit losses10,030,106 9,986,949 9,868,718 9,672,488 9,380,688 
Deposits10,158,337 9,993,095 9,675,206 9,959,469 9,831,484 
Federal Home Loan Bank advances1,091,666 1,346,566 1,211,166 514,200 488,750 
Securities sold under agreements to repurchase and other borrowings270,377 266,601 264,500 291,203 300,149 
Total stockholders’ equity1,626,283 1,610,371 1,585,464 1,540,216 1,521,432 

For the Three Months Ended,
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Selected Operating Data:
Interest income$150,096 $139,034 $130,277 $110,499 $99,416 
Interest expense57,987 40,232 23,789 14,534 8,619 
Net interest income92,109 98,802 106,488 95,965 90,797 
Provision for credit losses1,229 3,013 3,647 1,016 1,254 
Net interest income after provision for credit losses90,880 95,789 102,841 94,949 89,543 
Other income (excluding activity related to debt and equity investments)9,487 9,571 10,364 11,788 15,619 
Net (loss) gain on equity investments(559)(2,193)17,187 3,362 (8,078)
Net loss on sale of investments— (5,305)— — — 
Operating expenses (excluding merger related and branch consolidation expense (benefit), net)62,930 61,217 59,341 59,045 57,919 
Branch consolidation expense (benefit), net— 70 111 (346)546 
Merger related expenses— 22 276 298 196 
Income before provision for income taxes36,878 36,553 70,664 51,102 38,423 
Provision for income taxes8,996 8,654 17,353 12,298 8,940 
Net income27,882 27,899 53,311 38,804 29,483 
Net income attributable to non-controlling interest85 16 39 193 522 
Net income attributable to OceanFirst Financial Corp.$27,797 $27,883 $53,272 $38,611 $28,961 
Net income available to common stockholders$26,793 $26,879 $52,268 $37,607 $27,957 
Diluted earnings per share$0.45 $0.46 $0.89 $0.64 $0.47 
Net accretion/amortization of purchase accounting adjustments included in net interest income$1,152 $1,237 $2,278 $2,004 $2,196 
20

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Selected Financial Ratios and Other Data(1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
0.80 %0.82 %1.62 %1.19 %0.92 %
Return on average tangible assets (3) (4)
0.83 0.86 1.68 1.24 0.96 
Return on average stockholders’ equity (3)
6.61 6.77 13.25 9.68 7.31 
Return on average tangible stockholders’ equity (3) (4)
9.70 10.00 19.85 14.62 11.08 
Return on average tangible common equity (3) (4)
10.21 10.53 20.97 15.47 11.72 
Stockholders’ equity to total assets12.01 11.88 12.10 12.14 12.23 
Tangible stockholders’ equity to tangible assets (4)
8.51 8.37 8.47 8.38 8.39 
Tangible common equity to tangible assets (4)
8.09 7.95 8.03 7.92 7.92 
Net interest rate spread2.50 2.92 3.37 3.19 3.18 
Net interest margin3.02 3.34 3.64 3.36 3.29 
Operating expenses to average assets 1.87 1.88 1.85 1.87 1.92 
Efficiency ratio (5)
62.28 60.78 44.56 53.10 59.65 
Loans-to-deposits99.30 100.50 102.50 97.60 95.90 


For the Six Months Ended June 30,
20232022
Performance Ratios (Annualized):
Return on average assets (3)
0.81 %0.88 %
Return on average tangible assets (3) (4)
0.84 0.92 
Return on average stockholders’ equity (3)
6.69 6.94 
Return on average tangible stockholders’ equity (3) (4)
9.84 10.52 
Return on average tangible common equity (3) (4)
10.37 11.13 
Net interest rate spread2.70 3.12 
Net interest margin3.17 3.24 
Operating expenses to average assets1.88 1.94 
Efficiency ratio (5)
61.53 60.68 


21

(continued)
At or For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$339,890 $333,436 $324,066 $273,815 $279,222 
Nest Egg AUA/M397,927 400,227 403,538 402,256 398,344 
Total AUA/M737,817 733,663 727,604 676,071 677,566 
Per Share Data:
Cash dividends per common share$0.20 $0.20 $0.20 $0.20 $0.17 
Stockholders' equity per common share at end of period27.37 27.07 26.81 26.04 25.73 
Tangible common equity per common share at end of period (4)
17.72 17.42 17.08 16.30 15.96 
Common shares outstanding at end of period59,420,85959,486,08659,144,12859,138,507 59,130,236
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:38 38 38 38 38 
Quarterly Average Balances
Total securities$1,931,032 $1,955,399 $1,764,764 $1,748,687 $1,811,869 
Loans receivable, net10,010,785 9,924,905 9,771,104 9,512,447 9,204,583 
Total interest-earning assets12,250,055 12,010,044 11,605,891 11,326,782 11,083,892 
Total goodwill and core deposit intangible518,265 519,282 520,400 521,566 522,666 
Total assets13,467,721 13,244,593 12,834,411 12,517,955 12,251,985 
Time deposits2,458,872 1,826,662 1,486,410 1,467,297 937,387 
Total deposits (including non-interest-bearing deposits)9,993,010 9,793,256 9,975,509 10,066,342 9,665,200 
Total borrowings1,514,420 1,506,848 915,565 643,294 837,164 
Total interest-bearing liabilities9,634,204 9,271,597 8,669,190 8,380,936 8,174,240 
Non-interest bearing deposits1,873,226 2,028,507 2,221,884 2,328,700 2,328,124 
Stockholders' equity1,626,693 1,609,677 1,564,856 1,541,755 1,534,721 
Tangible stockholders’ equity (4)
1,108,428 1,090,395 1,044,456 1,020,189 1,012,055 
Quarterly Yields and Costs
Total securities3.47 %3.40 %2.83 %2.27 %1.90 %
Loans receivable, net5.17 4.96 4.76 4.18 3.95 
Total interest-earning assets4.91 4.68 4.46 3.88 3.60 
Time deposits3.57 2.88 1.95 1.53 0.97 
Total cost of deposits (including non-interest-bearing deposits)1.52 0.88 0.53 0.36 0.18 
Total borrowed funds5.31 5.09 4.49 3.27 2.06 
Total interest-bearing liabilities2.41 1.76 1.09 0.69 0.42 
Net interest spread2.50 2.92 3.37 3.19 3.18 
Net interest margin3.02 3.34 3.64 3.36 3.29 
(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Ratios for each period are based on net income available to common stockholders.
(4)    Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.



22


OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION
For the Three Months Ended
June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Core Earnings:
Net income available to common stockholders (GAAP)
$26,793 $26,879 $52,268 $37,607 $27,957 
Add (less) non-recurring and non-core items:
Net loss (gain) on equity investments(1)
559 2,193 (17,187)(3,362)8,078 
Net loss on sale of investments(1)
— 5,305 — — — 
Merger related expenses— 22 276 298 196 
Branch consolidation expense (benefit), net— 70 111 (346)546 
Income tax (benefit) expense on items(162)(1,797)4,060 824 (2,132)
Core earnings (Non-GAAP)
$27,190 $32,672 $39,528 $35,021 $34,645 
Income tax expense$8,996 $8,654 $17,353 $12,298 $8,940 
Provision for credit losses1,229 3,013 3,647 1,016 1,254 
Less: income tax (benefit) expense on non-core items(162)(1,797)4,060 824 (2,132)
Core earnings PTPP (Non-GAAP)
$37,577 $46,136 $56,468 $47,511 $46,971 
Core earnings diluted earnings per share$0.46 $0.55 $0.67 $0.60 $0.59 
Core earnings PTPP diluted earnings per share$0.64 $0.78 $0.96 $0.81 $0.80 
Core Ratios (Annualized):
Return on average assets0.81 %1.00 %1.22 %1.11 %1.13 %
Return on average tangible stockholders’ equity9.84 12.15 15.01 13.62 13.73 
Return on average tangible common equity10.36 12.80 15.86 14.40 14.53 
Efficiency ratio61.94 56.49 50.78 54.80 54.43 
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.
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For the Six Months Ended June 30,
20232022
Core Earnings:
Net income available to common stockholders (GAAP)
$53,672 $52,712 
Add (less) non-recurring and non-core items:
Merger related expenses22 2,161 
Branch consolidation expense, net70 948 
Net loss on equity investments(1)
2,752 10,864 
Net loss on sale of investments(1)
5,305 — 
Income tax benefit on items(1,959)(3,273)
Core earnings (Non-GAAP)
$59,862 $63,412 
Income tax expense$17,650 $16,914 
Credit loss provision 4,242 3,105 
Less: income tax benefit on non-core items(1,959)(3,273)
Core earnings PTPP (Non-GAAP)
$83,713 $86,704 
Core diluted earnings per share$1.01 $1.08 
Core earnings PTPP diluted earnings per share$1.42 $1.47 
Core Ratios (Annualized):
Return on average assets0.90 %1.06 %
Return on average tangible stockholders’ equity10.98 12.65 
Return on average tangible common equity11.56 13.38 
Efficiency ratio59.13 55.89 
(1) The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.


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(continued)

June 30,March 31,December 31,September 30,June 30,
20232023202220222022
Tangible Equity:
Total stockholders' equity$1,626,283 $1,610,371 $1,585,464 $1,540,216 $1,521,432 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible11,476 12,470 13,497 14,656 15,827 
Tangible stockholders' equity1,108,661 1,091,755 1,065,821 1,019,414 999,459 
Less:
Preferred stock55,527 55,527 55,527 55,527 55,527 
Tangible common equity$1,053,134 $1,036,228 $1,010,294 $963,887 $943,932 
Tangible Assets:
Total assets$13,538,903 $13,555,175 $13,103,896 $12,683,453 $12,438,653 
Less:
Goodwill506,146 506,146 506,146 506,146 506,146 
Core deposit intangible11,476 12,470 13,497 14,656 15,827 
Tangible assets$13,021,281 $13,036,559 $12,584,253 $12,162,651 $11,916,680 
Tangible stockholders' equity to tangible assets8.51 %8.37 %8.47 %8.38 %8.39 %
Tangible common equity to tangible assets8.09 %7.95 %8.03 %7.92 %7.92 %


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