OceanFirst Financial Corp. Investor Presentation May 2021 INVESTOR PRESENTATION . Forward Looking Statements In addition to historical information, this presentation 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, general economic conditions, public health crises (such as governmental, social and economic effects of the novel coronavirus), levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters and increases to flood insurance premiums, increased defaults as a result of economic disruptions caused by novel coronavirus, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes (particularly with respect to the novel coronavirus), 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, competition, demand for financial services in the Company’s market area, accounting principles and guidelines 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, 2020, 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. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. No Offer or Solicitation: The Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue, or the solicitation of an offer to purchase, subscribe to or acquire, securities of the Company, or an inducement to enter into investment activity in the United States or in any other jurisdiction in which such offer, solicitation, inducement or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any . contract or commitment or investment decision whatsoever. M A Y | 2021 2 INVESTOR PRESENTATION . OceanFirst Financial Corp. • NASDAQ: OCFC • Market Cap: $1.36 billion1 • Bank Holding Company with National Bank Subsidiary • Founded in 1902 • Total Assets of $11.6 billion2 • 58 Full-Service Branches in New Jersey and Metropolitan New York City1 Headquarters OceanFirst Bank Branches OceanFirst Bank Loan Offices . M A Y | 2021 1 As of April 28, 2021 2 As of March 31, 2021 3 INVESTOR PRESENTATION . Investment Thesis – Well Positioned for the Post-COVID-19 Environment • Strength of Assets • Balance sheet de-risked with executed loan sales, resolution of substantially all full forbearance loans, and extinguishment of high-cost borrowings • Organic Growth Including Low-Cost and Durable Deposit Base • Cost of deposits is low at 37 basis points (bps), and is projected to fall • Digital Innovation • Digital products and customer experience on par with national banks and FinTechs, outpacing regional and community banks • Disciplined and Strategic M&A • Acquired attractive and underappreciated assets in exurban markets at favorable prices • Bench Strength • Deep banking, regulatory, M&A, and integration experience • Demonstrated strong pandemic response • Conservative Risk Culture • Commitment to management of credit, interest rate and regulatory/compliance risk . • Insider Ownership M A Y | 2021 • Meaningful insider ownership aligned with shareholder interest 4 INVESTOR PRESENTATION . First Quarter 2021 Results Financial Results Strategic and Operational Focus • Net interest margin of 2.93% • COVID-19 on-going initiatives for • Record loan originations of $748 employees, customers, and million in Q11 community • Loan pipeline of $344 million at March • Recommit resources to core 31, 2021 businesses, loan growth, and customer service • Total deposit costs decreased by 8bps from Q4 to Q1 to 37bps • Expanded commercial banking team to support organic growth and deploy • Gain of $8.1 million realized by selling excess liquidity yield-focused common stock equity portfolio • Considering a common share repurchase plan and M&A opportunities as they arise to improve operating scale2 . M A Y | 2021 1 Excludes PPP loan originations of $60 million 2 Repurchased 500,000 shares at a weighted average cost of $19.94 in Q1 5 INVESTOR PRESENTATION . Net Interest Margin Operational Highlights Net Interest Margin2 • Non-interest bearing deposits 4.50 are 23% of average balance of 4.00 1 total deposits 3.50 3.17 • An extraordinary surplus of 3.00 3.10* liquidity will temporarily weigh 2.50 on margins until the excess cash can be prudently deployed 2.00 1.50 1.00 0.50 0.09 0.00 2014 2015 2016 2017 2018 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 OceanFirst Bank Peer Average * OceanFirst Bank Q4 NIM includes excess liquidity . M A Y | 2021 1 Based on average balances for the three months ended March 31, 2021 2 Source: Bank Reg Data as of December 31, 2020 6 INVESTOR PRESENTATION . Deposit Growth with Branch Consolidation Total Deposits Per Branch1 10,000 9,000 150 Average Deposits Branch Per ($ Millions) Strength and Durability of Low- 8,000 125 Cost Deposit Position: 7,000 • $153 million average branch size as of 6,000 100 March 31, 2021, doubling in size over 5,000 the past 5 years 75 Total Deposits ($ Millions) 4,000 • Core deposits represent 88%2 of total 3,000 50 deposits, with a cost of deposits of 37 2,000 basis points 25 1,000 0 0 2015 2016 2017 2018 2019 2020 2021 Total Deposits Average Deposits Per Branch . M A Y | 2021 1 All periods as of December 31, except 2021 which is as of March 31 2 All deposits except certificates of deposits 7 INVESTOR PRESENTATION . Loan Composition Emphasizes Commercial1 Total Loans Outstanding Loans by Customer Segment 2016 2017 32% 68% 2018 2019 Commercial Consumer 2020 2021 Loans by State Consumer Commercial 17% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 NY (in millions) Residential Home Equity & Consumer Investor CRE Owner Occupied CRE C&I Loans 68% NJ 15% PA . and Other M A Y | 2021 1 All periods as of December 31, except 2021 which is as of March 31 8 INVESTOR PRESENTATION . Generating Consistent & Attractive Returns 16.0% 1.50% 1.35% 14.0% 1.20% 12.0% 1.05% Core Return Assetson 10.0% 0.90% 8.0% 0.75% 0.60% 6.0% 0.45% 4.0% 0.30% 2.0% Core Return Tangible on Stockholders’ Equity 0.15% 0.0% 0.00% 2016 1 2017 1 2018 1 2019 1 2020 1, 2 2021 1, 3 Core Return on Tangible Stockholders' Equity Core Return on Assets 1 For 2016 to 2021, excludes merger related expenses. For 2016, also excludes Federal Home Loan Bank (“FHLB”) prepayment fees and loss on sale of investment securities. For 2017 to 2021, also excludes the effect of branch consolidation expense. For 2017 and 2018, also excludes the effect of additional income tax expense (benefit) related to the Tax Cuts and Jobs Act. For 2019, also excludes the effect of compensation expense due to the retirement of an executive officer, non-recurring professional fees, and income tax benefit related to change in New Jersey tax code. For 2020, also excludes the net gain on . equity investments, FHLB prepayment fees, gain on sale of PPP loans and the Two River and Country opening credit loss expense under the CECL model. For 2021, also excludes net gain on equity investments. M A Y | 2021 2 For 2020, returns adversely impacted by COVID-19. 3 For 2021, Q1 results are annualized. 9 INVESTOR PRESENTATION . Credit Metrics Reflect Conservative Culture Non-Performing Loans by Source as a Percent of Loans Receivable NET CHARGE-OFFS 0.15% 0.10% 0.05% 0.02% 0.24%1 NM2 0.60% 0.52% 0.50% 0.47% 0.43% 0.40% 0.35% 0.31% 0.30% 0.29% Receivable 0.20% Performing Loans as Percent Total of Loans 0.10% - Non 0.00% 2016 2017 2018 2019 2020 2021 Residential Consumer Commercial Real Estate Commercial & Industrial . 1 Core net charge-offs (which exclude net charge-offs of $17.8 million related to higher risk commercial loans and the sale of under-performing M A Y | 2021 residential/consumer loans sold), were 0.01% of total loans 2 Not meaningful; $280,000 in net recoveries for the three months ended March 31, 2021 10 INVESTOR PRESENTATION . Asset Growth Supplemented by Strategic M&A Opportunistic Acquisitions of Local Community Banks Target Closing Date Transaction Value Total Assets Colonial American Bank July 31, 2015 ~$12 million $142 million Cape Bancorp May 2, 2016 ~$196 million $1,518 million Ocean Shore Holding Co.
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