10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

________________________________________________ 

FORM 10-Q

 ________________________________________________  

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001-11713

________________________________________________  

OceanFirst Financial Corp.

(Exact name of registrant as specified in its charter)

 ________________________________________________ 

Delaware	22-3412577
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

110 West Front Street,	Red Bank,	NJ	07701
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (732) 240-4500

________________________________________________  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	OCFC	NASDAQ
Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)	OCFCP	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒    No   ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ☐    NO  ☒.

As of April 29, 2024, there were 58,713,469 shares of the Registrant’s Common Stock, par value $0.01 per share, outstanding.

OceanFirst Financial Corp.

INDEX TO FORM 10-Q

		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (unaudited)
	Consolidated Statements of Financial Condition as of March 31, 2024 (unaudited) and December 31, 2023	19
	Consolidated Statements of Income (unaudited) for the three months ended March 31, 2024 and 2023	20
	Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2024 and 2023	21
	Consolidated Statements of Changes in Stockholders’ Equity (unaudited) for the three months ended March 31, 2024 and 2023	22
	Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2024 and 2023	23
	Notes to Unaudited Consolidated Financial Statements	25
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	18
PART II.	Other Information	46
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 4.	Mine Safety Disclosures	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
Signatures		48

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)	March 31, 2024			December 31, 2023			March 31, 2023
SELECTED FINANCIAL CONDITION DATA:
Total assets	$	13,418,978		$	13,538,253		$	13,555,175
Loans receivable, net of allowance for loan credit losses	10,068,209			10,136,721			9,986,949
Deposits	10,236,851			10,434,949			9,993,095
Total stockholders’ equity	1,665,837			1,661,945			1,610,371
SELECTED OPERATING DATA:
Net interest income	86,224			87,824			98,802
Provision for credit losses	591			3,153			3,013
Other income	12,286			11,861			2,073
Operating expenses	58,672			60,189			61,309
Net income	28,610			27,752			27,899
Net income attributable to OceanFirst Financial Corp.	28,667			27,682			27,883
Net income available to common stockholders	27,663			26,678			26,879
Diluted earnings per share	0.47			0.46			0.46
SELECTED FINANCIAL RATIOS:
Book value per common share at end of period	28.32			27.96			27.07
Cash dividend per share	0.20			0.20			0.20
Dividend payout ratio per common share	42.55		%	43.48		%	43.48		%
Stockholders’ equity to total assets	12.41			12.28			11.88
Return on average assets (2) (3) (4)	0.82			0.78			0.82
Return on average stockholders’ equity (2) (3) (4)	6.65			6.41			6.77
Net interest rate spread (5)	2.23			2.25			2.94
Net interest margin (2) (6)	2.81			2.82			3.34
Operating expenses to average assets (2) (4)	1.74			1.76			1.88
Efficiency ratio (4) (7)	59.56			60.38			60.78
Loan-to-deposit ratio (8)	98.90			97.70			100.50
ASSET QUALITY (9):
Non-performing loans (10)	$	35,011		$	29,548		$	22,437
Allowance for loan credit losses as a percent of total loans receivable (8) (11)	0.66		%	0.66		%	0.60		%
Allowance for loan credit losses as a percent of total non-performing loans (10) (11)	191.86			227.21			268.28
Non-performing loans as a percent of total loans receivable (8) (10)	0.35			0.29			0.22
Non-performing assets as a percent of total assets (10)	0.26			0.22			0.17

(1) With the exception of end of quarter ratios, all ratios are based on average daily balances.

(2) Ratios are annualized.

(3) Ratios for each period are based on net income available to common stockholders.

(4) Performance ratios for the quarter ended March 31, 2024 included a net benefit related to a net gain on equity investments, a net gain on sale of trust business and the Federal Deposit Insurance Corporation (“FDIC”) special assessment of $2.7 million, or $2.0 million, net of tax expense. Performance ratios for the quarter ended December 31, 2023 included a net benefit related to a net gain on equity investments and the FDIC special assessment of $513,000, or $384,000, net of tax expense. Performance ratios for the quarter ended March 31, 2023 included a net expense related to merger related expenses, net branch consolidation expense, net loss on equity investments, and net loss on sale of investments of $7.6 million, or $5.8 million, net of tax benefit.

(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) At March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a single commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

(10) 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.

(11) Loans acquired from prior bank 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 $7.0 million, $7.5 million, and $10.5 million at March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

4

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 of Philadelphia, New York, Baltimore, and Boston. 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, 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 and actions of regulatory agencies.

Key developments relating to the Company’s financial results and corporate activities for the quarter ended March 31, 2024 were as follows:

•Net Interest Margin: Net interest margin of 2.81%, reflecting a level of stabilization.

•Capital Accretion: The Company continued to build capital, while also resuming share repurchases. The Company’s common equity tier 1 capital ratio and book value per share were 11.01% and $28.32, respectively, and increased 15 basis points and $0.36 from the prior linked quarter. The Company repurchased 957,827 shares totaling $15.1 million.

•Expense Management: The Company continued to exercise disciplined expense control. Non-interest expense was $58.7 million, which included a FDIC special assessment charge of $418,000.

•Asset Quality: Asset quality metrics remain strong as criticized and classified assets, non-performing loans, and loans 30 to 89 days past due as a percentage of total loans receivable were 1.65%, 0.35%, and 0.17%, respectively. These metrics continue to reflect strong credit performance and remain low compared to pre-pandemic levels.

The current quarter results were impacted by the following matters. Net interest income and margin were modestly impacted by a continued mix-shift to and repricing of higher-cost funding that offset the increase in yields on interest-earning assets. Deposit beta, which is the change in rates paid to customers relative to the change in federal funds target rate, increased modestly to 40%, from 38% in the prior linked quarter. Additionally, the results included several non-recurring matters, which included a $1.2 million gain on sale of a portion of the Company’s trust business, a $1.2 million write-off in income tax expense, $418,000 in FDIC special assessments, and $345,000 in bank owned life insurance death benefits.

Net income available to common stockholders for the quarter ended March 31, 2024 increased to $27.7 million, or $0.47 per diluted share, as compared to $26.9 million, or $0.46 per diluted share, for the corresponding prior year period. The dividends paid to preferred stockholders were $1.0 million for each of the three months ended March 31, 2024 and 2023, respectively.

On April 18, 2024, 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 March 31, 2024, will be paid on May 17, 2024 to common stockholders of record on May 6, 2024. The Board also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing a 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2024 to preferred stockholders of record on April 30, 2024.

5

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 months ended March 31, 2024, interest income included net loan fees of $737,000, as compared to $598,000 for the same prior year period.

The following table sets forth certain information relating to the Company for the three months ended March 31, 2024 and 2023. 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 March 31,
	2024						2023
(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	$	163,192	$	2,226	5.49	%	$	129,740	$	938	2.93	%
Securities (2)	2,098,421		22,255		4.27		1,955,399		16,376		3.40
Loans receivable, net (3)
Commercial	6,925,048		104,421		6.06		6,840,006		92,780		5.50
Residential real estate	2,974,468		28,596		3.85		2,872,049		25,161		3.50
Home equity loans and lines and other consumer (“other consumer”)	248,396		4,104		6.65		263,404		3,779		5.82
Allowance for loan credit losses, net of deferred loan costs and fees	(59,141)		—		—		(50,554)		—		—
Loans receivable, net	10,088,771		137,121		5.46		9,924,905		121,720		4.96
Total interest-earning assets	12,350,384		161,602		5.26		12,010,044		139,034		4.68
Non-interest-earning assets	1,206,336						1,234,549
Total assets	$	13,556,720					$	13,244,593
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	3,925,965	20,795		2.13	%	$	3,863,338	6,269		0.66	%
Money market	1,092,003		9,172		3.38		705,631		1,759		1.01
Savings	1,355,718		4,462		1.32		1,369,118		334		0.10
Time deposits	2,414,063		25,426		4.24		1,826,662		12,968		2.88
Total	8,787,749		59,855		2.74		7,764,749		21,330		1.11
Federal Home Loan Bank (“FHLB”) advances	644,818		7,771		4.85		1,222,791		14,614		4.85
Securities sold under agreements to repurchase	68,500		411		2.41		71,898		90		0.51
Other borrowings (4)	500,901		7,341		5.89		306,156		4,198		5.56
Total borrowings	1,214,219		15,523		5.14		1,600,845		18,902		4.79
Total interest-bearing liabilities	10,001,968		75,378		3.03		9,365,594		40,232		1.74
Non-interest-bearing deposits	1,634,583						2,028,507
Non-interest-bearing liabilities (4)	247,129						240,815
Total liabilities	11,883,680						11,634,916
Stockholders’ equity	1,673,040						1,609,677
Total liabilities and equity	$	13,556,720					$	13,244,593
Net interest income			$	86,224					$	98,802
Net interest rate spread (5)					2.23	%					2.94	%
Net interest margin (6)					2.81	%					3.34	%
Total cost of deposits (including non-interest-bearing deposits)					2.31	%					0.88	%

(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)For 2023, includes reclassifications to conform with current period presentation.

(5)Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(6)Net interest margin represents net interest income divided by average interest-earning assets.

6

Comparison of Financial Condition at March 31, 2024 and December 31, 2023

Total assets decreased by $119.3 million to $13.42 billion, from $13.54 billion, primarily due to decreases in loans and debt securities. Total loans decreased by $68.9 million to $10.13 billion, from $10.19 billion, due to loan payoffs and lower loan originations. For more information on the composition of the loan portfolio, see “Lending Activities.” Held-to-maturity debt securities decreased by $31.1 million to $1.13 billion, from $1.16 billion, primarily due to principal repayments. Other assets increased by $20.3 million to $200.0 million, from $179.7 million, primarily due to an increase in market values associated with customer interest rate swap programs.

Total liabilities decreased by $123.2 million to $11.75 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $198.1 million to $10.24 billion, from $10.43 billion. Time deposits decreased to $2.32 billion, from $2.45 billion, or 22.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits, which decreased by $88.1 million. The loan-to-deposit ratio was 98.9%, as compared to 97.7%. FHLB advances decreased by $190.2 million to $658.4 million, from $848.6 million due to mix shift in funding sources to other borrowings, which increased by $229.3 million to $425.7 million, from $196.5 million, as a result of lower cost funding availability.

Other liabilities increased by $36.4 million to $337.1 million, from $300.7 million, primarily due to an increase in the market values 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 March 31, 2024, including the Company’s common equity tier one capital ratio which increased to 11.01%, up 15 basis points from December 31, 2023.

Total stockholders’ equity increased to $1.67 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of share repurchases and dividends. For the quarter ended March 31, 2024, the Company repurchased 957,827 shares totaling $15.1 million representing a weighted average cost per share of $15.64. The Company had 1,976,611 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $1.4 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax. The Company’s stockholders’ equity to assets ratio was 12.41%, as compared to 12.28% and book value per share increased to $28.32, as compared to $27.96.

Comparison of Operating Results for the Three Months Ended March 31, 2024 and March 31, 2023

General

Net income available to common stockholders increased to $27.7 million, or $0.47 per diluted share, as compared to $26.9 million, or $0.46 per diluted share. Net income for the quarter ended March 31, 2024 included net gains on equity investments of $1.9 million, a net gain on sale of a portion of its trust business of $1.2 million, and the special FDIC assessment of $418,000. These items increased net income by $2.0 million, net of tax, for the quarter ended March 31, 2024. Net income for the quarter ended March 31, 2023 included merger related expenses of $22,000, net branch consolidation expense of $70,000, net loss on equity investments of $2.2 million and net loss on sale of investments of $5.3 million. These items decreased net income by $5.8 million, net of tax, for the quarter ended March 31, 2023.

Interest Income

Interest income increased to $161.6 million, from $139.0 million and the yield on average interest-earning assets increased to 5.26%, from 4.68%. The average balance of interest-earning assets increased by $340.3 million, primarily driven by growth of $163.9 million in total loans and $143.0 million in securities.

Interest Expense

Interest expense increased to $75.4 million, from $40.2 million, primarily due to a $1.02 billion increase in the average balance of deposits and a $194.7 million increase in the average balance of other borrowings, partly offset by a $578.0 million decrease in the average balance of FHLB advances, which reflect a shift in funding sources. The cost of average interest-bearing liabilities increased to 3.03%, from 1.74%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest-bearing deposits) increased to 2.31%, from 0.88%.

7

Net Interest Income and Margin

Net interest income decreased to $86.2 million, from $98.8 million, primarily reflecting the net impact of the higher interest rate environment. The net interest margin decreased to 2.81%, from 3.34%, primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets.

Provision for Credit Losses

Provision for credit losses was $591,000, as compared to $3.0 million. The current quarter provision was driven by the net effect of continued uncertainty impacting the banking industry and improvements in macro-economic forecasts. Net loan charge-offs were $349,000 primarily related to a single consumer borrower, as compared to net loan recoveries of $47,000.

Non-interest Income

Other income increased to $12.3 million, as compared to $2.1 million. Other income was favorably impacted by net gains on equity investments of $1.9 million and a net gain on sale of a portion of its trust business of $1.2 million. The prior year period’s other income was adversely impacted by a net loss equity investments of $2.2 million and net loss on sale of investment of $5.3 million. The remaining decrease of $370,000 was driven by a decrease in fees and service charges of $686,000 on lower retail deposit fees and title activity.

Non-interest Expense

Operating expenses decreased to $58.7 million, as compared to $61.3 million. Operating expenses were adversely impacted by an FDIC special assessment of $418,000 in the current year, and $92,000 from merger-related and net branch consolidation expenses in the prior year. The remaining decrease of $3.0 million was driven by decreases in professional fees of $2.4 million and compensation and employee benefits expenses of $1.2 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.

Income Tax Expense

The provision for income taxes was $10.6 million, as compared to $8.7 million. The effective tax rate was 27.1%, as compared to 23.7%. The current quarter's effective tax rate was negatively impacted by 3.0% due to a write-off of a deferred tax asset of $1.2 million.

8

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 March 31, 2024, 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 March 31, 2024, total on-balance sheet liquidity and funding capacity was $3.7 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 the government deposits are protected by the Federal Deposit Insurance Corporation 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 March 31, 2024, the Bank reported in its Call Report $5.36 billion of estimated uninsured deposits. This total included $2.45 billion of collateralized government deposits and $1.40 billion of intercompany deposits of fully consolidated subsidiaries, leaving estimated adjusted uninsured deposits of $1.52 billion, or 14.7% of total deposits. On-balance-sheet liquidity and funding capacity represented 243.8% of the estimated adjusted uninsured deposits.

The primary sources of liquidity specifically available to the Parent Company are dividends from the Bank, proceeds from sale of investments, and the issuance of debt, preferred and common stock. For the three months ended March 31, 2024, the Parent Company received dividend payments of $41.0 million from the Bank. At March 31, 2024, the Parent Company held $90.5 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, and other borrowings. 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 March 31, 2024, the Company pledged $7.34 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 municipal letter of credit to collateralize certain municipal deposits. The Company also pledged $1.35 billion of securities to secure borrowings, enhance borrowing capacity, collateralize its repurchase agreements, and for other purposes required by law. The Company had $658.4 million of FHLB advances, including $49.8 million of overnight borrowings as of March 31, 2024, as compared to $848.6 million of FHLB term advances at December 31, 2023, and no outstanding overnight borrowings from the FHLB. The Company had $425.7 million of other borrowings as of March 31, 2024, as compared to $196.5 million at December 31, 2023, reflecting a shift in funding sources from FHLB advances to other borrowings. The Company had no outstanding borrowings from the FRB discount window at both March 31, 2024 or December 31, 2023.

The Company’s cash needs for the quarter ended March 31, 2024 were primarily satisfied by the increase in other borrowings. The cash was utilized for the reduction of FHLB advances and deposits.

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 March 31, 2024, outstanding commitments to originate loans totaled $136.5 million and outstanding undrawn lines of credit totaled $1.40 billion, of which $1.07 billion were commitments to commercial and commercial construction borrowers and $330.4 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

9

dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire 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 March 31, 2024, the Company also had various contractual obligations, which included debt obligations of $1.15 billion, including finance lease obligations of $1.6 million, and an additional $19.1 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 $2.24 billion at March 31, 2024.

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 other 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 quarter ended March 31, 2024, the Company resumed repurchase activity, repurchasing 957,827 shares of its common stock totaling $15.1 million. At March 31, 2024, there were 1,976,611 shares available to be repurchased under the authorized stock repurchase program.

Cash dividends on common stock declared and paid during the first three months of March 31, 2024 were $11.9 million. Cash dividends on preferred stock declared and paid during the first three months of March 31, 2024 were $1.0 million.

The Company’s ability to continue to repurchase shares of common stock and pay dividends remain dependent upon capital distributions from the Bank, which may be adversely affected by capital restraints imposed by applicable regulations. If applicable regulations or regulatory bodies prevent the Bank from paying a dividend to the Company, the 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 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 March 31, 2024, the Bank and Parent Company continued to maintain adequate capital under all stress scenarios, including a scenario where all losses related to the investment securities portfolio are realized. 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.

10

Regulatory Capital Requirements

As of March 31, 2024 and December 31, 2023, 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 March 31, 2024	Amount		Ratio		Amount		Ratio			Amount		Ratio
Company:
Tier 1 capital (to average assets)	$	1,223,658	9.38	%	$	521,831	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	1,093,935		11.01		695,214		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,223,658		12.32		844,189		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,419,157		14.29		1,042,821		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,148,120	8.87	%	$	517,815	4.00	%		$	647,269	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,148,120		11.68		687,868		7.00		(1)	638,734		6.50
Tier 1 capital (to risk-weighted assets)	1,148,120		11.68		835,268		8.50		(1)	786,134		8.00
Total capital (to risk-weighted assets)	1,218,619		12.40		1,031,802		10.50		(1)	982,668		10.00
As of December 31, 2023
Company:
Tier 1 capital (to average assets)	$	1,218,142	9.31	%	$	523,588	4.00	%		N/A		N/A
Common equity Tier 1 (to risk-weighted assets)	1,088,542		10.86		701,778		7.00		(1)	N/A		N/A
Tier 1 capital (to risk-weighted assets)	1,218,142		12.15		852,159		8.50		(1)	N/A		N/A
Total capital (to risk-weighted assets)	1,413,400		14.10		1,052,667		10.50		(1)	N/A		N/A
Bank:
Tier 1 capital (to average assets)	$	1,155,896	8.90	%	$	519,690	4.00	%		$	649,612	5.00	%
Common equity Tier 1 (to risk-weighted assets)	1,155,896		11.65		694,620		7.00		(1)	645,004		6.50
Tier 1 capital (to risk-weighted assets)	1,155,896		11.65		843,467		8.50		(1)	793,852		8.00
Total capital (to risk-weighted assets)	1,226,154		12.36		1,041,930		10.50		(1)	992,315		10.00

(1)Includes the Capital Conservation Buffer of 2.50%.

The Company and the Bank satisfied the criteria to be “well-capitalized” under the Prompt Corrective Action regulations.

At March 31, 2024 and December 31, 2023, the Company maintained a stockholders’ equity to total assets ratio of 12.41% and 12.28%, respectively.

11

Lending Activities

Loan Portfolio Composition. At March 31, 2024, the Company had total loans outstanding of $10.13 billion, of which $6.24 billion, or 61.6% of total loans, were commercial real estate, multi-family, and land loans (collectively, “commercial real estate”). The remainder of the portfolio consisted of $677.2 million of commercial and industrial loans, or 6.7% of total loans; $2.97 billion of residential real estate loans, or 29.3% of total loans; and $245.9 million of consumer loans, primarily home equity loans and lines of credit, or 2.4% of total loans.

Commercial real estate. The Bank originates commercial real estate loans that are secured by properties, or properties under construction, that are generally used for business purposes such as office, industrial, multi-family or retail facilities. Commercial real estate loans are provided on owner-occupied properties and on investor-owned properties. At March 31, 2024, of the total commercial real estate portfolio, $5.32 billion or 85.3% was considered investor-owned and $914.6 million or 14.7% was considered owner-occupied.

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.

For investor-owned properties, 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. 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 in multiple geographies and the portfolio exhibits stable credit quality.

The following tables present additional information on the Company’s commercial real estate - investor owned loans. The Company’s commercial real estate - investor owned loans by industry as of March 31, 2024:

	As of March 31, 2024
(dollars in thousands)	Amount		Percent of Total		Weighted Average LTV (1)		Weighted Average Debt Service Coverage Ratio (2)
Office	$	531,666	11	%	52	%	1.7x
Medical	311,497		7		57		1.7
Credit Tenant	262,224		6		64		1.5
Total Office (3)	1,105,387		24		56		1.7
Retail	1,081,900		23		57		1.9
Multi-family (4)	883,877		19		58		1.6
Industrial/warehouse	721,762		15		52		2.0
Hospitality	153,524		3		48		1.9
Other (5)	739,773		16		46		1.8
Total	$	4,686,223	100	%	54		1.8
Construction	636,532
Total CRE Investor owned and construction	$	5,322,755

(1) Represents the weighted average of loan balances as of March 31, 2024 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.

(3) Central business district (“CBD”) exposure represents $123 million, or 11.1%, of the total office loan balance. Office CBD loans had a weighted average LTV of 66% and weighted average debt service coverage ratio of 1.6x. $82 million, or 67%, of the total office CBD exposure are to credit tenants, life sciences and medical borrowers. New York City office CBD loans represent $16 million, or 0.12% of the Company’s total assets.

(4) New York City rent-regulated multi-family loans, where the property has more than 50% of its units rent-regulated, represent $36 million, or 0.27% of the Company’s total assets.

(5) Other includes co-operatives, single purpose, stores and some living units / mixed use, investor owned 1-4 family, land / development, and other.

12

The following table presents total commercial real estate - investor owned loans by geography (generally based on location of collateral) as of March 31, 2024:

	As of March 31, 2024
(dollars in thousands)	Amount		Percent of Total
New York	$	1,546,423	33	%
Pennsylvania and Delaware	1,254,500		27
New Jersey	1,177,786		25
Maryland and District of Columbia	149,624		3
Massachusetts	149,020		3
Other	408,870		9
Total	$	4,686,223	100	%
Construction	636,532
Total CRE investor owned and construction	$	5,322,755

Asset quality. The following table sets forth information regarding the Company’s non-performing assets, consisting of non-performing loans. 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.

	March 31,			December 31,
	2024			2023
	(dollars in thousands)
Non-performing loans (1):
Commercial real estate – investor	$	21,507		$	20,820
Commercial real estate – owner occupied	3,355			351
Commercial and industrial	567			304
Residential real estate	7,181			5,542
Other consumer	2,401			2,531
Total non-performing loans and assets	$	35,011		$	29,548
PCD loans, net of allowance for loan credit losses	$	16,700		$	16,122
Delinquent loans 30-89 days	$	17,534		$	19,202
Allowance for loan credit losses as a percent of total loans (2)	0.66		%	0.66		%
Allowance for loan credit losses as a percent of total non-performing loans (2)	191.86			227.21
Non-performing loans as a percent of total loans receivable	0.35			0.29
Non-performing assets as a percent of total assets	0.26			0.22

(1)As of March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a single commercial real estate relationship that was partially charged-off during 2023

(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, were $7.0 million and $7.5 million at March 31, 2024 and December 31, 2023, respectively.

Overall asset quality metrics remained strong for the quarter. The Company’s non-performing loans represented 0.35% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 191.86%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $17.5 million, from $19.2 million. The Company’s allowance for loan credit losses was 0.66% of total loans for each period.

13

The Company classifies loans and other assets in accordance with regulatory guidelines. The table below excludes any loans held-for-sale and represents Special Mention and Substandard assets (in thousands):

	March 31,		December 31,
	2024		2023
Special Mention	$	69,283	$	40,385
Substandard	98,241		106,552

The increase in special mention loans was primarily due to new downgrades of three commercial relationships totaling $33.5 million, partly offset by three commercial loans totaling $3.5 million which were upgraded during the quarter. Additionally, the decrease in substandard loans was primarily due to two CRE-Investor Owned relationships totaling $7.6 million that migrated from substandard to pass.

14

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, 2023 (the “2023 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. The 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 ASC 350, Intangibles – Goodwill and Other was a critical accounting estimate in the preparation of the consolidated financial statements.

Impact of New Accounting Pronouncements

Accounting Pronouncements Adopted in 2024

In June 2022, the financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The amendments in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. In addition, this update introduces new disclosure requirements to provide information about the contractual sales restriction including the nature and remaining duration of the restriction. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2023. Early adoption is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In March 2023, FASB issued ASU 2023-02, “Investments - Equity Method and Joint Venture (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method”. The amendments in this ASU permit reporting entities to account for the tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method. This update is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2023. Early adoption is permitted. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In August 2023, FASB issued 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 Company does not expect this standard to have a material impact to the consolidated financial statements.

In November 2023, FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU require improved reportable segment information on an annual and interim basis, primarily through enhanced disclosures about significant segment expenses. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect this standard to have an impact on the consolidated financial statements.

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 is currently evaluating the impact of this standard on the consolidated financial statements.

15

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 OceanFirst Financial Corp. (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, those items discussed under Item 1A. Risk Factors herein and the following: changes in interest rates, inflation, general economic conditions, 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 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, including 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 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 effect of the Company’s rating under the Community Reinvestment Act, 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, 2023, 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.

16

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

Management of Interest Rate Risk (“IRR”)

Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from the IRR inherent in its lending, investment, deposit-taking, and funding activities. The Company’s profitability is affected by fluctuations in interest rates. Changes in interest rates may negatively or positively impact the Company’s earnings to the extent that the interest rates borne by assets and liabilities do not change at the same speed, to the same extent or on the same basis. Changes in interest rates may also negatively or positively impact the market value of the Company’s investment securities, in particular fixed-rate instruments. Net gains or losses in available-for-sale securities can increase or decrease accumulated other comprehensive income or loss and total stockholders’ equity. Management actively monitors and manages IRR. The extent of the movement of interest rates, higher or lower, is an uncertainty that could have a substantial impact on the earnings and stockholders’ equity of the Company.

The principal objectives of the IRR management function are to: evaluate the IRR inherent in the Company’s business; determine the level of risk appropriate given the Company’s business focus, operating and interest rate environment, capital and liquidity requirements, and performance objectives; and manage the risk consistent with Board approved guidelines. The Company’s Board maintains an Asset Liability Committee (“ALCO”) consisting of members of management, responsible for reviewing asset liability policies and the IRR position. ALCO meets regularly and reports the Company’s IRR position and trends to the Board on a regular basis.

The Company utilizes a number of strategies to manage IRR including, but not limited to: (1) managing the origination, purchase, sale, and retention of various types of loans with differing IRR profiles; (2) attempting to reduce the overall interest rate sensitivity of liabilities by emphasizing stable relationship-based deposits and longer-term deposits; (3) selectively purchasing interest rate swaps and caps converting the rates for customer loans to manage individual loans and the Bank’s overall IRR profile; (4) managing the investment portfolio IRR profile; (5) managing the maturities and rate structures of borrowings and time deposits; and (6) purchasing interest rate swaps to manage overall balance sheet interest rate risk.

The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” Interest rate sensitivity is monitored through the use of an IRR model, which measures the change in the institution’s economic value of equity (“EVE”) and net interest income under various interest rate scenarios. EVE is the difference between the net present value of assets, liabilities and off-balance-sheet contracts. Interest rate sensitivity is monitored by management through the use of a model which measures IRR by modeling the change in EVE and net interest income over a range of interest rate scenarios. Modeled assets and liabilities are assumed to reprice at respective repricing or maturity dates. Pricing caps and floors are included in the results, where applicable. The Company uses prepayment expectations set forth by market sources as well as Company generated data where applicable. Generally, cash flows from loans and securities are assumed to be reinvested to maintain a static balance sheet. Other assumptions about balance sheet mix are generally held constant. The Company’s interest rate sensitivity should be reviewed in conjunction with the financial statements and notes thereto contained in the 2023 Form 10-K.

The methodologies and assumptions used in this analysis are periodically evaluated and refined in response to changes in the market environment, changes in the Company’s balance sheet composition, enhancements in the Company’s modeling and other factors. Such changes may affect historical comparisons of these results.

17

The Company performs a variety of EVE and twelve-month net interest income sensitivity scenarios. The following table sets forth sensitivity for a specific range of interest rate scenarios as of March 31, 2024 and December 31, 2023.

	March 31, 2024						December 31, 2023
Change in Interest Rates in Basis Points	Economic Value of Equity			Net Interest Income			Economic Value of Equity		Net Interest Income
(Rate Shock)		% Change			% Change		% Change			% Change
300		(4.9)	%		3.0	%	(12.8)	%		(2.2)	%
200		(3.0)			2.3		(9.1)			(1.3)
100		(1.4)			1.5		(5.2)			(0.4)
Static		—			—		—			—
(100)		1.8			(1.6)		7.0			(0.5)
(200)		2.7			(3.7)		8.8			(1.9)
(300)		0.3			(6.6)		6.8			(4.2)

The net interest income sensitivity results indicate that at March 31, 2024 the Company was modestly asset sensitive. The change in sensitivity between March 31, 2024 and December 31, 2023 was impacted by a deposit mix shift within non-maturity deposits with lower betas as well as a change in loan prepayments, partially offset by an increase in overnight borrowings and reduction in short-term time deposits.

Overall, the measure of EVE at risk decreased in all rate scenarios from December 31, 2023 to March 31, 2024. This decrease was the result of a deposit mix shift within non-maturity deposits with lower betas and longer average lives, as well as a change in loan prepayments.

Certain shortcomings are inherent in the methodology used in the EVE and net interest income IRR measurements. The model requires the making of certain assumptions which may tend to oversimplify the manner in which actual yields and costs respond to changes in market interest rates. First, the model assumes that the composition of the Company’s interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured. Second, the model assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Third, the model does not take into account the Company’s business or strategic plans or any steps it may take to respond to changes in rates. Fourth, prepayment, rate sensitivity, and average life assumptions can have a significant impact on the IRR model results. Lastly, the model utilizes data derived from historical performance. Accordingly, although the above measurements provide an indication of the Company’s IRR exposure at a particular point in time, such measurements are not intended to provide a precise forecast of the effect of changes in market interest rates. Given the unique nature of the post-pandemic interest rate environment and the speed with which interest rates have been changing, the projections noted above on the Company’s EVE and net interest income can be expected to significantly differ from actual results.

Item 4.    Controls and Procedures

(a) Disclosure Controls and Procedures

The Company’s management, including the Company’s principal executive officer and principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective. Disclosure controls and procedures are the controls and other procedures that are designed to ensure that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

18

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands, except per share amounts)

	March 31,		December 31,
	2024		2023
	(Unaudited)
Assets
Cash and due from banks	$	130,422	$	153,718
Debt securities available-for-sale, at estimated fair value	744,944		753,892
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,058 at March 31, 2024 and $1,133 at December 31, 2023 (estimated fair value of $1,029,965 at March 31, 2024 and $1,068,438 at December 31, 2023)	1,128,666		1,159,735
Equity investments	103,201		100,163
Restricted equity investments, at cost	85,689		93,766
Loans receivable, net of allowance for loan credit losses of $67,173 at March 31, 2024 and $67,137 at December 31, 2023	10,068,209		10,136,721
Loans held-for-sale	4,702		5,166
Interest and dividends receivable	52,502		51,874
Premises and equipment, net	119,211		121,372
Bank owned life insurance	266,615		266,498
Assets held for sale	28		28
Goodwill	506,146		506,146
Core deposit intangible	8,669		9,513
Other assets	199,974		179,661
Total assets	$	13,418,978	$	13,538,253
Liabilities and Stockholders’ Equity
Deposits	$	10,236,851	$	10,434,949
Federal Home Loan Bank (“FHLB”) advances	658,436		848,636
Securities sold under agreements to repurchase with customers	66,798		73,148
Other borrowings	425,722		196,456
Advances by borrowers for taxes and insurance	28,187		22,407
Other liabilities	337,147		300,712
Total liabilities	11,753,141		11,876,308
Stockholders’ equity:
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at both March 31, 2024 and December 31, 2023	1		1
Common stock, $0.01 par value, 150,000,000 shares authorized, 62,505,408 and 62,182,767 shares issued at March 31, 2024 and December 31, 2023, respectively; and 58,812,498 and 59,447,684 shares outstanding at March 31, 2024 and December 31, 2023, respectively	613		613
Additional paid-in capital	1,163,282		1,161,755
Retained earnings	608,355		592,542
Accumulated other comprehensive loss	(19,415)		(20,862)
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")	(3,470)		(3,780)
Treasury stock, 3,692,910 and 2,735,083 shares at March 31, 2024 and December 31, 2023, respectively	(84,254)		(69,106)
OceanFirst Financial Corp. stockholders’ equity	1,665,112		1,661,163
Non-controlling interest	725		782
Total stockholders’ equity	1,665,837		1,661,945
Total liabilities and stockholders’ equity	$	13,418,978	$	13,538,253

See accompanying Notes to Unaudited Consolidated Financial Statements.

19

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	For the Three Months Ended March 31,
	2024		2023
	(Unaudited)
Interest income:
Loans	$	137,121	$	121,720
Debt securities	19,861		14,286
Equity investments and other	4,620		3,028
Total interest income	161,602		139,034
Interest expense:
Deposits	59,855		21,330
Borrowed funds	15,523		18,902
Total interest expense	75,378		40,232
Net interest income	86,224		98,802
Provision for credit losses	591		3,013
Net interest income after provision for credit losses	85,633		95,789
Other income:
Bankcard services revenue	1,416		1,330
Trust and asset management revenue	526		612
Fees and service charges	4,473		5,159
Net gain on sales of loans	357		20
Net gain (loss) on equity investments	1,923		(6,801)
Income from bank owned life insurance	1,862		1,281
Commercial loan swap income	138		701
Other	1,591		(229)
Total other income	12,286		2,073
Operating expenses:
Compensation and employee benefits	32,759		33,920
Occupancy	5,199		5,239
Equipment	1,130		1,205
Marketing	990		982
Federal deposit insurance and regulatory assessments	3,135		1,749
Data processing	5,956		6,154
Check card processing	1,050		1,281
Professional fees	2,732		5,098
Amortization of core deposit intangible	844		1,027
Branch consolidation expense, net	—		70
Merger related expenses	—		22
Other operating expense	4,877		4,562
Total operating expenses	58,672		61,309
Income before provision for income taxes	39,247		36,553
Provision for income taxes	10,637		8,654
Net income	28,610		27,899
Net (loss) income attributable to non-controlling interest	(57)		16
Net income attributable to OceanFirst Financial Corp.	28,667		27,883
Dividends on preferred shares	1,004		1,004
Net income available to common stockholders	$	27,663	$	26,879
Basic earnings per share	$	0.47	$	0.46
Diluted earnings per share	$	0.47	$	0.46
Average basic shares outstanding	58,789		58,774
Average diluted shares outstanding	58,791		58,918

See accompanying Notes to Unaudited Consolidated Financial Statements.

20

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	For the Three Months Ended March 31,
	2024		2023
	(Unaudited)
Net income	$	28,610	$	27,899
Other comprehensive income:
Net unrealized gain on debt securities (net of tax expense of $634 in 2024 and $1,766 in 2023)	1,993		5,547
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $42 in 2024 and $56 in 2023)	61		79
Unrealized (loss) gain on derivative hedges (net of tax benefit of $302 in 2024 and tax expense of $131 in 2023)	(949)		412
Reclassification adjustment for losses included in net income (net of tax expense of $109 in 2024 and $201 in 2023)	342		629
Total other comprehensive income, net of tax	1,447		6,667
Total comprehensive income	30,057		34,566
Less: comprehensive (loss) income attributable to non-controlling interest	(57)		16
Comprehensive income attributable to OceanFirst Financial Corp.	30,114		34,550
Less: Dividends on preferred shares	1,004		1,004
Total comprehensive income available to common stockholders	$	29,110	$	33,546

See accompanying Notes to Unaudited Consolidated Financial Statements.

21

OceanFirst Financial Corp.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands, except per share amounts)

(Unaudited)

For the Three Months Ended March 31, 2024 and 2023

	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Employee Stock Ownership Plan		Treasury Stock		Non-Controlling Interest		Total
Balance at December 31, 2022	$	1	$	612	$	1,154,821	$	540,507	$	(35,982)	$	(6,191)	$	(69,106)	$	802	$	1,585,464
Net income	—		—		—		27,883		—		—		—		16		27,899
Other comprehensive income, net of tax	—		—		—		—		6,667		—		—		—		6,667
Stock compensation	—		—		1,828		—		—		—		—		—		1,828
Allocation of ESOP stock	—		—		61		—		—		603		—		—		664
Cash dividend $0.20 per share	—		—		—		(11,755)		—		—		—		—		(11,755)
Exercise of stock options	—		1		1,297		(690)		—		—		—		—		608
Preferred stock dividend	—		—		—		(1,004)		—		—		—		—		(1,004)
Balance at March 31, 2023	$	1	$	613	$	1,158,007	$	554,941	$	(29,315)	$	(5,588)	$	(69,106)	$	818	$	1,610,371
Balance at December 31, 2023	$	1	$	613	$	1,161,755	$	592,542	$	(20,862)	$	(3,780)	$	(69,106)	$	782	$	1,661,945
Net income	—		—		—		28,667		—		—		—		(57)		28,610
Other comprehensive income, net of tax	—		—		—		—		1,447		—		—		—		1,447
Stock compensation	—		—		1,541		—		—		—		—		—		1,541
Allocation of ESOP stock	—		—		(43)		—		—		310		—		—		267
Cash dividend $0.20 per share	—		—		—		(11,850)		—		—		—		—		(11,850)
Repurchase of 957,827 shares of common stock	—		—		29		—		—		—		(15,148)		—		(15,119)
Preferred stock dividend	—		—		—		(1,004)		—		—		—		—		(1,004)
Balance at March 31, 2024	$	1	$	613	$	1,163,282	$	608,355	$	(19,415)	$	(3,470)	$	(84,254)	$	725	$	1,665,837

See accompanying Notes to Unaudited Consolidated Financial Statements.

22

OceanFirst Financial Corp.

CONSOLIDATED STATEMENT OF CASH FLOWS

(dollars in thousands)

	For the Three Months Ended March 31,
	2024		2023
	(Unaudited)
Cash flows from operating activities:
Net income	$	28,610	$	27,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	2,869		3,094
Allocation of ESOP stock	267		664
Stock compensation	1,541		1,828
Net excess tax expense on stock compensation	365		250
Amortization of servicing asset	19		15
Net premium amortization in excess of discount accretion on securities	14		1,093
Net amortization of deferred costs on borrowings	152		147
Amortization of core deposit intangible	844		1,027
Net accretion of purchase accounting adjustments	(947)		(1,267)
Net amortization of deferred fees/costs and premiums/discounts on loans	(588)		(138)
Provision for credit losses	591		3,013
Net gain on sale of fixed assets	—		(6)
Net loss on sales of available-for-sale securities	110		697
Net (gain) loss on equity investments	(1,923)		6,801
Net gain on sales of loans	(357)		(20)
Proceeds from sales of residential loans held for sale	30,322		3,881
Residential loans originated for sale	(29,501)		(5,056)
Increase in value of bank owned life insurance	(1,862)		(1,281)
Increase in interest and dividends receivable	(628)		(2,638)
Deferred tax provision (benefit)	1,422		(16)
(Increase) decrease in other assets	(20,997)		23,221
Increase (decrease) in other liabilities	35,789		(38,834)
Total adjustments	17,502		(3,525)
Net cash provided by operating activities	46,112		24,374
Cash flows from investing activities:
Net decrease (increase) in loans receivable	69,501		(120,505)
Purchase of debt securities available-for-sale	(6,628)		(4,287)
Purchase of debt securities held-to-maturity	(1,994)		(55,444)
Purchase of equity investments	(1,282)		(6,736)
Proceeds from maturities and calls of debt securities available-for-sale	5,610		15,500
Proceeds from maturities and calls of debt securities held-to-maturity	9,002		6,980
Proceeds from sales of debt securities available-for-sale	390		1,300
Proceeds from sale of equity investments	—		661
Principal repayments on debt securities available-for-sale	12,491		—
Principal repayments on debt securities held-to-maturity	24,371		24,273
Proceeds from bank owned life insurance	1,745		230
Proceeds from the redemption of restricted equity investments	20,850		58,129
Purchases of restricted equity investments	(12,773)		(64,596)
Purchases of premises and equipment	(680)		(2,153)
Net cash provided by (used in) investing activities	120,603		(146,648)

23

OceanFirst Financial Corp.

CONSOLIDATED STATEMENT OF CASH FLOWS (Continued)

(dollars in thousands)

	For the Three Months Ended March 31,
	2024		2023
	(Unaudited)
Cash flows from financing activities:
(Decrease) increase in deposits	$	(198,053)	$	317,973
(Decrease) increase in short-term borrowings	(6,373)		1,814
Net (repayment) proceeds from FHLB advances	(190,200)		135,400
Net proceeds from other borrowings	229,000		—
Increase in advances by borrowers for taxes and insurance	5,780		9,793
Exercise of stock options	—		608
Payment of employee taxes withheld from stock awards and phantom stock units	(2,192)		(2,308)
Purchase of treasury stock	(15,119)		—
Dividends paid	(12,854)		(12,759)
Net cash (used in) provided by financing activities	(190,011)		450,521
Net (decrease) increase in cash and due from banks and restricted cash	(23,296)		328,247
Cash and due from banks and restricted cash at beginning of period	153,718		167,986
Cash and due from banks and restricted cash at end of period	$	130,422	$	496,233
Supplemental Disclosure of Cash Flow Information:
Cash and due from banks at beginning of period	$	153,718	$	167,946
Restricted cash at beginning of period	—		40
Cash and due from banks and restricted cash at beginning of period	$	153,718	$	167,986
Cash and due from banks at end of period	$	130,422	$	496,193
Restricted cash at end of period	—		40
Cash and due from banks and restricted cash at end of period	$	130,422	$	496,233
Cash paid during the period for:
Interest	$	62,818	$	33,914
Income taxes	1,898		1,268
Non-cash activities:
Accretion of unrealized loss on securities reclassified to held-to-maturity	103		135
Net loan charge-offs (recoveries)	349		(47)
Transfer of securities from held-to-maturity to available-for-sale	500		—

See accompanying Notes to Unaudited Consolidated Financial Statements.

24

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements

Note 1. Basis of Presentation

The consolidated financial statements include the accounts of: OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, and Country Property Holdings, Inc; and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”). All significant intercompany accounts and transactions have been eliminated in consolidation.

The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the full year 2024 or any other period. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented. Actual results could differ from these estimates.

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

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

25

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 2. Earnings per Share

The following reconciles shares outstanding for basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024	2023
Weighted average shares outstanding	59,207	59,291
Less: Unallocated ESOP shares	(189)	(302)
Unallocated incentive award shares	(229)	(215)
Average basic shares outstanding	58,789	58,774
Add: Effect of dilutive securities:
Incentive awards	2	144
Average diluted shares outstanding	58,791	58,918

For the three months ended March 31, 2024 and 2023, antidilutive stock options of 1,801,000 and 852,000, respectively, were excluded from the earnings per share calculation.

26

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 3. Securities

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

	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Securities Credit Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	65,818	$	—	$	(6,166)	$	59,652	$	—
Corporate debt securities	11,831		17		(1,178)		10,670		—
Asset-backed securities	289,632		113		(1,619)		288,126		—
Mortgage-backed securities (“MBS”):
Agency residential	291,759		1,460		(12)		293,207		—
Agency commercial	109,352		—		(16,063)		93,289		—
Total mortgage-backed securities	401,111		1,460		(16,075)		386,496		—
Total debt securities available-for-sale	$	768,392	$	1,590	$	(25,038)	$	744,944	$	—
Debt securities held-to-maturity:
State and municipal debt obligations	$	213,231	$	188	$	(15,535)	$	197,884	$	(36)
Corporate debt securities	66,583		192		(3,543)		63,232		(916)
Mortgage-backed securities:
Agency residential	747,094		178		(75,407)		671,865		—
Agency commercial	82,208		2		(4,312)		77,898		—
Non-agency commercial	20,608		—		(1,522)		19,086		(106)
Total mortgage-backed securities	849,910		180		(81,241)		768,849		(106)
Total debt securities held-to-maturity	$	1,129,724	$	560	$	(100,319)	$	1,029,965	$	(1,058)
Total debt securities	$	1,898,116	$	2,150	$	(125,357)	$	1,774,909	$	(1,058)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	66,490	$	—	$	(5,796)	$	60,694	$	—
Corporate debt securities	10,096		11		(981)		9,126		—
Asset-backed securities	295,796		—		(4,252)		291,544		—
Mortgage-backed securities:
Agency residential	298,107		183		(97)		298,193		—
Agency commercial	109,590		—		(15,255)		94,335		—
Total mortgage-backed securities	407,697		183		(15,352)		392,528		—
Total debt securities available-for-sale	$	780,079	$	194	$	(26,381)	$	753,892	$	—
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations	$	222,009	$	251	$	(14,550)	$	207,710	$	(39)
Corporate debt securities	69,809		391		(3,941)		66,259		(987)
Mortgage-backed securities:
Agency residential	765,632		901		(70,040)		696,493		—
Agency commercial	82,734		10		(3,678)		79,066		—
Non-agency commercial	20,684		—		(1,774)		18,910		(107)
Total mortgage-backed securities	869,050		911		(75,492)		794,469		(107)
Total debt securities held-to-maturity	$	1,160,868	$	1,553	$	(93,983)	$	1,068,438	$	(1,133)
Total debt securities	$	1,940,947	$	1,747	$	(120,364)	$	1,822,330	$	(1,133)

27

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024		2023
Allowance for securities credit losses
Beginning balance	$	(1,133)	$	(1,128)
Benefit for credit losses	75		85
Total ending allowance balance	$	(1,058)	$	(1,043)

The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2024, aggregated by credit quality indicator, are as follows (in thousands):

	Investment Grade		Non-Investment Grade/Non-rated		Total
As of March 31, 2024
State and municipal debt obligations	$	213,231	$	—	$	213,231
Corporate debt securities	53,047		13,536		66,583
Non-agency commercial MBS	20,608		—		20,608
Total debt securities held-to-maturity	$	286,886	$	13,536	$	300,422

There were $110,000 and $697,000 of realized losses on sale of debt securities available-for-sale for the three months ended March 31, 2024 and 2023, respectively. These realized gains/losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income.

The amortized cost and estimated fair value of debt securities at March 31, 2024 by contractual maturity are shown below (in thousands):

March 31, 2024	Amortized Cost		Estimated Fair Value
Less than one year	$	32,582	$	32,182
Due after one year through five years	194,788		180,665
Due after five years through ten years	194,267		189,112
Due after ten years	225,458		217,605
	$	647,095	$	619,564

Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2024, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $77.4 million, $60.8 million, and $289.6 million, respectively, and an estimated fair value of $72.9 million, $59.0 million, and $288.1 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.

28

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

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

	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	5,383	$	(14)	$	54,269	$	(6,152)	$	59,652	$	(6,166)
Corporate debt securities	1,432		(25)		7,496		(1,153)		8,928		(1,178)
Asset-backed securities	9,291		(9)		216,864		(1,610)		226,155		(1,619)
MBS:
Agency residential	23,921		(12)		—		—		23,921		(12)
Agency commercial	—		—		93,289		(16,063)		93,289		(16,063)
Total MBS	23,921		(12)		93,289		(16,063)		117,210		(16,075)
Total debt securities available-for-sale	40,027		(60)		371,918		(24,978)		411,945		(25,038)
Debt securities held-to-maturity:
State and municipal debt obligations	2,675		(30)		185,307		(15,505)		187,982		(15,535)
Corporate debt securities	2,996		(568)		57,739		(2,975)		60,735		(3,543)
MBS:
Agency residential	104,295		(1,702)		530,150		(73,705)		634,445		(75,407)
Agency commercial	19,736		(440)		57,153		(3,872)		76,889		(4,312)
Non-agency commercial	—		—		19,086		(1,522)		19,086		(1,522)
Total MBS	124,031		(2,142)		606,389		(79,099)		730,420		(81,241)
Total debt securities held-to-maturity	129,702		(2,740)		849,435		(97,579)		979,137		(100,319)
Total debt securities	$	169,729	$	(2,800)	$	1,221,353	$	(122,557)	$	1,391,082	$	(125,357)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	833	$	(2)	$	59,861	$	(5,794)	$	60,694	$	(5,796)
Corporate debt securities	1,543		(165)		6,116		(816)		7,659		(981)
Asset-backed securities	—		—		291,544		(4,252)		291,544		(4,252)
MBS:
Agency residential	169,000		(97)		—		—		169,000		(97)
Agency commercial	—		—		94,335		(15,255)		94,335		(15,255)
Total MBS	169,000		(97)		94,335		(15,255)		263,335		(15,352)
Total debt securities available-for-sale	171,376		(264)		451,856		(26,117)		623,232		(26,381)
Debt securities held-to-maturity:
State and municipal debt obligations	6,671		(23)		191,511		(14,527)		198,182		(14,550)
Corporate debt securities	3,084		(473)		58,386		(3,468)		61,470		(3,941)
MBS:
Agency residential	95,776		(693)		525,751		(69,347)		621,527		(70,040)
Agency commercial	18,902		(370)		55,051		(3,308)		73,953		(3,678)
Non-agency commercial	—		—		18,910		(1,774)		18,910		(1,774)
Total MBS	114,678		(1,063)		599,712		(74,429)		714,390		(75,492)
Total debt securities held-to-maturity	124,433		(1,559)		849,609		(92,424)		974,042		(93,983)
Total debt securities	$	295,809	$	(1,823)	$	1,301,465	$	(118,541)	$	1,597,274	$	(120,364)

The Company concluded that debt securities were not impaired at March 31, 2024 based on consideration of several factors. The Company noted that each issuer made all contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.

29

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Equity Investments

At March 31, 2024 and December 31, 2023, the Company held equity investments of $103.2 million and $100.2 million, respectively. The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in other financial institutions and funds.

The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2024 and 2023 are shown in the table below (in thousands):

	Three Months Ended March 31,
	2024		2023
Net gain (loss) on equity investments	$	1,923	$	(6,801)
Less: Net losses recognized on equity investments sold	—		(4,608)
Unrealized gains (losses) recognized on equity investments still held	$	1,923	$	(2,193)

30

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 4. Loans Receivable, Net

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

	March 31,		December 31,
	2024		2023
Commercial:
Commercial real estate – investor	$	5,322,755	$	5,353,974
Commercial real estate – owner occupied	914,582		943,891
Commercial and industrial	677,176		666,532
Total commercial	6,914,513		6,964,397
Consumer:
Residential real estate	2,965,276		2,979,534
Home equity loans and lines and other consumer (“other consumer”)	245,859		250,664
Total consumer	3,211,135		3,230,198
Total loans receivable	10,125,648		10,194,595
Deferred origination costs, net of fees	9,734		9,263
Allowance for loan credit losses	(67,173)		(67,137)
Total loans receivable, net	$	10,068,209	$	10,136,721

The Company categorizes all loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:

    Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.

    Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

    Substandard: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the collection or the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

    Doubtful: Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

31

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):

	2024		2023		2022		2021		2020		2019 and prior		Revolving lines of credit		Total
March 31, 2024
Commercial real estate - investor
Pass	$	48,428	$	136,697	$	1,170,068	$	1,327,264	$	525,806	$	1,352,769	$	644,938	$	5,205,970
Special Mention	—		—		—		2,389		—		42,787		12,695		57,871
Substandard	—		—		—		595		4,535		53,784		—		58,914
Total commercial real estate - investor	48,428		136,697		1,170,068		1,330,248		530,341		1,449,340		657,633		5,322,755
Commercial real estate - owner occupied
Pass	12,333		65,173		116,684		98,566		57,582		513,115		23,133		886,586
Special Mention	—		—		—		—		—		8,705		—		8,705
Substandard	—		—		—		—		—		18,672		619		19,291
Total commercial real estate - owner occupied	12,333		65,173		116,684		98,566		57,582		540,492		23,752		914,582
Commercial and industrial
Pass	12,487		122,952		65,864		18,212		7,671		55,600		377,278		660,064
Special Mention	—		—		—		—		—		170		2,239		2,409
Substandard	—		—		589		69		—		1,217		12,828		14,703
Total commercial and industrial	12,487		122,952		66,453		18,281		7,671		56,987		392,345		677,176
Residential real estate (1)
Pass	43,812		279,313		904,132		555,218		378,827		800,232		—		2,961,534
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		869		—		220		732		1,921		—		3,742
Total residential real estate	43,812		280,182		904,132		555,438		379,559		802,153		—		2,965,276
Other consumer (1)
Pass	5,247		31,232		19,401		20,089		12,440		126,222		29,339		243,970
Special Mention	—		—		—		—		—		298		—		298
Substandard	—		—		—		—		—		1,591		—		1,591
Total other consumer	5,247		31,232		19,401		20,089		12,440		128,111		29,339		245,859
Total loans	$	122,307	$	636,236	$	2,276,738	$	2,022,622	$	987,593	$	2,977,083	$	1,103,069	$	10,125,648

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

32

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

	2023		2022		2021		2020		2019		2018 and prior		Revolving lines of credit		Total
December 31, 2023
Commercial real estate - investor
Pass	$	137,028	$	1,165,955	$	1,328,012	$	529,745	$	490,438	$	930,337	$	679,804	$	5,261,319
Special Mention	—		—		2,413		790		1,446		22,147		—		26,796
Substandard	—		—		648		3,750		13,275		48,186		—		65,859
Total commercial real estate - investor	137,028		1,165,955		1,331,073		534,285		505,159		1,000,670		679,804		5,353,974
Commercial real estate - owner occupied
Pass	66,642		120,280		103,104		59,179		102,703		441,713		21,052		914,673
Special Mention	—		—		—		—		1,272		8,314		—		9,586
Substandard	—		—		—		—		2,019		16,900		713		19,632
Total commercial real estate - owner occupied	66,642		120,280		103,104		59,179		105,994		466,927		21,765		943,891
Commercial and industrial
Pass	112,914		64,770		19,473		8,645		7,778		51,082		383,013		647,675
Special Mention	—		—		—		—		—		184		2,859		3,043
Substandard	—		622		117		—		145		1,385		13,545		15,814
Total commercial and industrial	112,914		65,392		19,590		8,645		7,923		52,651		399,417		666,532
Residential real estate (1)
Pass	283,296		916,153		564,515		388,392		223,247		600,118		—		2,975,721
Special Mention	—		—		—		—		131		271		—		402
Substandard	323		366		—		258		487		1,977		—		3,411
Total residential real estate	283,619		916,519		564,515		388,650		223,865		602,366		—		2,979,534
Other consumer (1)
Pass	32,859		19,918		20,737		12,675		12,937		118,486		30,658		248,270
Special Mention	—		172		—		—		—		386		—		558
Substandard	—		—		—		—		6		1,698		132		1,836
Total other consumer	32,859		20,090		20,737		12,675		12,943		120,570		30,790		250,664
Total loans	$	633,062	$	2,288,236	$	2,039,019	$	1,003,434	$	855,884	$	2,243,184	$	1,131,776	$	10,194,595

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

33

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

An analysis of the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Commercial Real Estate – Investor		Commercial Real Estate – Owner Occupied		Commercial and  Industrial		Residential Real Estate		Other Consumer		Total
For the three months ended March 31, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
(Benefit) provision for credit losses	(865)		(107)		769		9		579		385
Charge-offs (1)	(46)		—		—		—		(395)		(441)
Recoveries	2		4		5		66		15		92
Balance at end of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
For the three months ended March 31, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	21,070	$	4,423	$	5,695	$	24,530	$	1,106	$	56,824
Provision (benefit) for credit losses	1,379		(304)		131		2,390		(272)		3,324
Charge-offs (1)	—		(6)		(3)		—		(1)		(10)
Recoveries	2		3		4		8		40		57
Balance at end of period	$	22,451	$	4,116	$	5,827	$	26,928	$	873	$	60,195

(1) Gross charge-offs for the three months ended March 31, 2024 of $441,000 included one commercial real estate loan of $46,000, which was originated in 2021. The remainder of the charge-offs were related to loans that were originated prior to 2019. Gross charge-offs for the three months ended March 31, 2023 of $10,000 related to loans that were originated prior to 2018.

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At March 31, 2024 and December 31, 2023, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $16.0 million and $15.2 million, respectively, commercial real estate - owner occupied of $3.4 million and $352,000, respectively, and commercial and industrial of $567,000 and $304,000, respectively. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $2.3 million and $2.6 million at March 31, 2024 and December 31, 2023, respectively. 

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

	March 31,		December 31,
	2024		2023
Commercial real estate – investor (1)	$	21,507	$	20,820
Commercial real estate – owner occupied	3,355		351
Commercial and industrial	567		304
Residential real estate	7,181		5,542
Other consumer	2,401		2,531
	$	35,011	$	29,548

(1) At March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

At March 31, 2024 and December 31, 2023, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At March 31, 2024 and December 31, 2023, there were no loans that were past due 90 days or greater and still accruing interest.

34

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
March 31, 2024
Commercial real estate – investor (1)	$	4,746	$	—	$	16,004	$	20,750	$	5,302,005	$	5,322,755
Commercial real estate – owner occupied	531		368		318		1,217		913,365		914,582
Commercial and industrial	3		—		567		570		676,606		677,176
Residential real estate	10,793		—		3,742		14,535		2,950,741		2,965,276
Other consumer	795		298		1,591		2,684		243,175		245,859
	$	16,868	$	666	$	22,222	$	39,756	$	10,085,892	$	10,125,648
December 31, 2023
Commercial real estate – investor (1)	$	978	$	684	$	15,201	$	16,863	$	5,337,111	$	5,353,974
Commercial real estate – owner occupied	335		352		293		980		942,911		943,891
Commercial and industrial	163		—		145		308		666,224		666,532
Residential real estate	14,858		402		3,411		18,671		2,960,863		2,979,534
Other consumer	872		558		1,836		3,266		247,398		250,664
	$	17,206	$	1,996	$	20,886	$	40,088	$	10,154,507	$	10,194,595

(1) At March 31, 2024 and December 31, 2023, 90 days or greater past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

35

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of March 31, 2024 and December 31, 2023, loans with modifications to borrowers experiencing financial difficulty totaled $12.0 million and $8.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of March 31, 2024 or December 31, 2023.

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023 (in thousands):

	Term Extension		Combination of Term Extension and Interest Rate Reduction		Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended March 31, 2024
Commercial real estate – owner occupied	$	—	$	—	$	2,994	$	2,994	0.33	%
Residential real estate	129		—		—		129		—
Other consumer	—		148		—		148		0.06
	$	129	$	148	$	2,994	$	3,271	—	%
For the three months ended March 31, 2023
Residential real estate	$	435	$	—	$	—	$	435	0.02	%
Other consumer	40		—		—		40		0.02
	$	475	$	—	$	—	$	475	—	%

The modifications during the periods presented had an insignificant financial effect on the Company.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2024 and since adoption of the standard for March 31, 2023 (in thousands):

	Current		60 - 89 Days past due		90 Days or Greater past due			Total
March 31, 2024
Commercial real estate – investor	$	7,758	$	—	$	—		$	7,758
Commercial real estate – owner occupied	2,994		—		—			2,994
Residential real estate	258		—		153		(1)	411
Other consumer	419		—		—			419
	$	11,429	$	—	$	153		$	11,582
March 31, 2023
Residential real estate	$	297	$	138	$	—		$	435
Other consumer	40		—		—			40
	$	337	$	138	$	—		$	475

(1) Represents one residential loan that defaulted during the period and had been modified within the previous 12 months. There were no such loans that defaulted during the three months ended March 31, 2023.

36

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 5. Deposits

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

Type of Account	March 31,		December 31,
	2024		2023
Non-interest-bearing	$	1,639,828	$	1,657,119
Interest-bearing checking	3,865,699		3,911,766
Money market deposit	1,150,979		1,021,805
Savings	1,260,309		1,398,837
Time deposits	2,320,036		2,445,422
Total deposits	$	10,236,851	$	10,434,949

Included in time deposits at March 31, 2024 and December 31, 2023 was $373.9 million and $412.0 million, respectively, of deposits of $250,000 or more. Time deposits also include brokered deposits of $543.4 million and $631.5 million at March 31, 2024 and December 31, 2023, respectively.

Note 6. Borrowed Funds

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

	March 31,		December 31,
	2024		2023
FHLB advances	$	658,436	$	848,636
Securities sold under agreements to repurchase with customers	66,798		73,148
Other borrowings	425,722		196,456
Total borrowed funds	$	1,150,956	$	1,118,240

At March 31, 2024, there were $608.6 million of short-term advances and $49.8 million outstanding in overnight borrowings from the FHLB, as compared to $848.6 million and $0 at December 31, 2023, respectively.

At March 31, 2024, there were $425.7 million of other borrowings as compared to $196.5 million at December 31, 2023 due to a shift in funding sources from FHLB to other borrowings.

Pledged assets

The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands):

	Loans		Debt securities		Total
March 31, 2024
FHLB and FRB	$	7,336,405	$	1,244,634	$	8,581,039
Repurchase agreements	—		101,526		101,526
Total pledged assets	$	7,336,405	$	1,346,160	$	8,682,565
December 31, 2023
FHLB and FRB	$	7,255,671	$	1,051,558	$	8,307,229
Repurchase agreements	—		103,416		103,416
Total pledged assets	$	7,255,671	$	1,154,974	$	8,410,645

The securities pledged, which collateralize the repurchase agreements are delivered to the lender, with whom each transaction is executed, or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the repurchase agreements.

37

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 7. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

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

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means.

Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Debt Securities Available-for-Sale

Debt securities classified as available-for-sale are reported at fair value. Fair value of U.S. Treasuries are determined using quoted prices in active markets (Level 1). The majority of the other debt securities are determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or security industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities.

Equity Investments

Equity investments with readily determinable fair value are reported at fair value. Fair value for these investments is primarily determined using a quoted price in an active market or exchange (Level 1) or using inputs other than quoted prices that are based on market observable information (Level 2). Equity investments without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (measurement alternative). Certain equity investments without readily determinable fair values are measured at net asset value (“NAV”) per share as a practical expedient, which are excluded from the fair value hierarchy levels in the table below.

38

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Interest Rate Derivatives

The Company’s interest rate swaps and cap contracts are reported at fair value utilizing discounted cash flow models provided by an independent, third-party and observable market data (Level 2). When entering into an interest rate swap or cap contract, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of the contract counterparty.

Loans Individually Measured for Impairment

Loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is generally based on independent appraisals (Level 3), which may be adjusted by management for qualitative factors, such as economic factors and estimated liquidation expenses.

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

			Fair Value Measurements at Reporting Date Using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	744,944	$	46,989	$	697,955	$	—
Equity investments	54,788		—		54,788		—
Interest rate derivative asset	104,149		—		104,149		—
Interest rate derivative liability	(105,118)		—		(105,118)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	48,413		—		—		44,738
Loans measured for impairment based on the fair value of the underlying collateral (3)	22,206		—		—		22,206
December 31, 2023
Items measured on a recurring basis:
Debt securities available-for-sale	$	753,892	$	43,036	$	710,856	$	—
Equity investments	53,166		—		53,166		—
Interest rate derivative asset	87,776		—		87,776		—
Interest rate derivative liability	(87,848)		—		(87,848)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	46,997		—		—		43,576
Loans measured for impairment based on the fair value of the underlying collateral (3)	18,509		—		—		18,509

(1)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $44.7 million and $43.6 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the three months ended March 31, 2024 and the year ended December 31, 2023.

(2)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $3.7 million and $3.4 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments.

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three months ended March 31, 2024 and 2023.

39

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Assets and Liabilities Disclosed at Fair Value

A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below.

Cash and Due from Banks

For cash and due from banks, the carrying amount approximates fair value.

Debt Securities Held-to-Maturity

Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt securities utilizing Level 2 inputs. Most of the Company’s debt securities are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities.

Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and decides as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities.

Restricted Equity Investments

The fair value of these investments, which are primarily Federal Home Loan Bank of New York and Federal Reserve Bank stock, is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment as stipulated by the respective entities.

Loans Receivable and Loans Held-for-Sale

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential real estate, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms.

Fair value of performing and non-performing loans, which is based on an exit price notion, was estimated by discounting the future cash flows, net of estimated prepayments, at market discount rates that reflect the credit and interest rate risk inherent in the loan.

Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is generally determined based on bid quotations from secondary markets.

Deposits Other than Time Deposits

The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts is, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported.

Time Deposits

The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Securities Sold Under Agreements to Repurchase with Customers

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

FHLB Advances and Other Borrowings

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

40

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

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

			Fair Value Measurements at Reporting Date Using:
	Book Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Financial Assets:
Cash and due from banks	$	130,422	$	130,422	$	—	$	—
Debt securities held-to-maturity	1,128,666		—		1,029,965		—
Restricted equity investments	85,689		—		—		85,689
Loans receivable, net and loans held-for-sale	10,072,911		—		—		9,486,375
Financial Liabilities:
Deposits other than time deposits (1)	7,916,815		—		7,916,815		—
Time deposits	2,320,036		—		2,313,553		—
FHLB advances and other borrowings	1,084,158		—		1,068,119		—
Securities sold under agreements to repurchase with customers	66,798		66,798		—		—
December 31, 2023
Financial Assets:
Cash and due from banks	$	153,718	$	153,718	$	—	$	—
Debt securities held-to-maturity	1,159,735		—		1,068,438		—
Restricted equity investments	93,766		—		—		93,766
Loans receivable, net and loans held-for-sale	10,141,887		—		—		9,606,498
Financial Liabilities:
Deposits other than time deposits (1)	7,989,527		—		7,989,527		—
Time deposits	2,445,422		—		2,421,058		—
FHLB advances and other borrowings	1,045,092		—		1,008,351		—
Securities sold under agreements to repurchase with customers	73,148		73,148		—		—

(1)    The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, bank owned life insurance, deferred tax assets and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

41

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 8. Derivatives and Hedging Activities

The Company enters into derivative financial instruments which involve, to varying degrees, interest rate and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes derivative financial instruments to accommodate the business needs of its customers as well as to economically hedge the exposure that this creates for the Company. Additionally, the Company enters into certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The Company does not use derivative financial instruments for trading purposes.

Customer Derivatives – Interest Rate Swaps and Cap Contracts

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The Company also enters into interest rate cap contracts that enable commercial loan customers to lock in a cap on a variable-rate commercial loan agreement. This feature prevents the loan from repricing to a level that exceeds the cap contract’s specified interest rate, which serves to hedge the risk from rising interest rates. The Company then enters into an offsetting interest rate cap contract with a third party in order to economically hedge its exposure through the customer agreement.

These interest rate swaps and cap contracts with both the customers and third parties are not designated as hedges under ASC Topic 815, Derivatives and Hedging, therefore changes in fair value are reported in earnings. As the interest rate swaps and cap contracts are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC Topic 820, Fair Value Measurements. The Company recognized gains of $13,000 and losses of $22,000 in commercial loan swap income resulting from the fair value adjustments for the three months ended March 31, 2024 and 2023, respectively.

Derivatives Designated as Hedging Instruments

During 2022, the Company entered into a three-year interest rate swap intended to add stability to its net interest income and to manage its exposure to future interest rate movements associated with a pool of floating rate commercial loans. The swap requires the Company to pay variable-rate amounts indexed to one-month term Secured Overnight Financing Rate (“SOFR”) to the counterparty in exchange for the receipt of fixed-rate amounts at 4.0% from the counterparty. The swap was designated and qualified as a cash flow hedge under ASC Topic 815, Derivatives and Hedging. The changes in the fair value of cash flow hedges are initially reported in other comprehensive income. Amounts are subsequently reclassified from accumulated other comprehensive income to earnings when the hedged transactions occur, specifically within the same line item as the hedged item (interest income). Therefore, a portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are made or received on the Company’s interest rate swaps.

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

	Three Months Ended March 31,
	2024		2023
AOCL balance at beginning of period, net of tax	$	(36)	$	(25)
Unrealized (losses) gains recognized in OCI	(949)		412
Losses reclassified from AOCI into interest income	259		101
(AOCL) AOCI balance at end of period, net of tax	$	(726)	$	488

During the twelve months ending March 31, 2025, the Company estimates that an additional $932,000 will be reclassified as a reduction to interest income.

42

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands):

	Notional		Fair Value
			Other assets		Other liabilities
As of March 31, 2024
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,439,968	$	104,149	$	104,161
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		957
Total Derivatives	$	1,539,968	$	104,149	$	105,118
As of December 31, 2023
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,418,276	$	87,776	$	87,801
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		47
Total Derivatives	$	1,518,276	$	87,776	$	87,848

Credit Risk-Related Contingent Features

The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by being a party to International Swaps and Derivatives Association agreements with third-party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties was $0 at both March 31, 2024 and December 31, 2023. The amount of collateral received from third parties was $106.2 million and $88.3 million at March 31, 2024 and December 31, 2023, respectively. The amount of collateral posted with third parties and received from third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $105.1 million and $87.8 million at March 31, 2024 and December 31, 2023, respectively.

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

43

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

Note 9. Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which has a lease term through 2029.

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

		March 31,		December 31,
		2024		2023
Lease ROU Assets	Classification
Operating lease ROU assets	Other assets	$	17,963	$	18,979
Finance lease ROU asset	Premises and equipment, net	1,246		1,304
Total lease ROU assets		$	19,209	$	20,283
Lease Liabilities
Operating lease liabilities (1)	Other liabilities	$	19,060	$	20,018
Finance lease liability	Other borrowings	1,620		1,685
Total lease liabilities		$	20,680	$	21,703

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $5.7 million and $5.9 million at March 31, 2024 and December 31, 2023, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31,		December 31,
	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	6.39 years		6.52 years
Finance lease	5.35 years		5.60 years
Weighted-Average Discount Rate
Operating leases	3.03	%	3.02	%
Finance lease	5.63		5.63

44

OceanFirst Financial Corp.

Notes to Unaudited Consolidated Financial Statements (Continued)

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

	Three Months Ended March 31,
	2024		2023
Lease Expense
Operating lease expense	$	1,159	$	1,145
Finance lease expense:
Amortization of ROU assets	58		58
Interest on lease liabilities (1)	23		26
Total	$	1,240	$	1,229
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,101	$	1,139
Operating cash flows from finance leases	23		26
Financing cash flows from finance leases	65		61

(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):

	Finance Lease		Operating Leases
For the Year Ending December 31,
2024	$	262	$	3,274
2025	350		4,401
2026	350		3,833
2027	350		2,678
2028	350		1,524
Thereafter	209		5,545
Total	1,871		21,255
Less: Imputed interest	(251)		(2,195)
Total lease liabilities	$	1,620	$	19,060

Note 10. Variable Interest Entity

The Company accounts for Trident as a variable interest entity (“VIE”) under ASC 810, Consolidation, for which the Company is considered the primary beneficiary (i.e. the party that has a controlling financial interest). In accordance with ASC 810, Consolidation, the Company has consolidated Trident’s assets and liabilities.

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

	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	23,365	$	22,151
Other assets	551		606
Total assets	23,916		22,757
Other liabilities	22,104		20,803
Net assets	$	1,812	$	1,954

45

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company and the Bank are not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business. Such routine legal proceedings in the aggregate are believed by management to be immaterial to the Company’s financial condition or results of operations.

Item 1A. Risk Factors

For a summary of risk factors relevant to the Company, see Part I, Item 1A, “Risk Factors,” in the 2023 Form 10-K. There have been no material changes to risk factors relevant to the Company’s operations since December 31, 2023. Additional risks not presently known to the Company, or that the Company currently deems immaterial, may also adversely affect the business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Purchases of Equity Securities

On June 25, 2021, the Company announced the authorization by the Board of Directors to repurchase up to an additional 5% of the Company’s outstanding common stock, or 3.0 million shares. The Company repurchased 957,827 shares of its common stock during the three month period ended March 31, 2024. At March 31, 2024, there were 1,976,611 shares available for repurchase under the Company’s stock repurchase program.

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number of Shares that May Yet Be Purchased Under the Plan or Program
January 1, 2024 through January 31, 2024	63,436	$	17.67	63,436	2,871,002
February 1, 2024 through February 29, 2024	390,714	15.76		390,714	2,480,288
March 1, 2024 through March 31, 2024	503,677	15.29		503,677	1,976,611

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information

During the three months ended March 31, 2024, no directors or executive officers of the Company adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or any “Rule 10b5-1 trading arrangement.”

46

Item 6. Exhibits

Exhibit No:	Exhibit Description	Reference
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed with this document
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed with this document
32.0	Certification pursuant to 18 U.S.C. Section 1350 as added by Section 906 of the Sarbanes-Oxley Act of 2002	Filed with this document
101.0	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements
104.0	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)

47

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

OceanFirst Financial Corp.

Registrant

DATE:	May 2, 2024	/s/ Christopher D. Maher
		Christopher D. Maher
		Chairman and Chief Executive Officer

DATE:	May 2, 2024	/s/ Patrick S. Barrett
		Patrick S. Barrett
		Executive Vice President and Chief Financial Officer

48

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher D. Maher, certify that:

1.I have reviewed this quarterly report on Form 10-Q of OceanFirst Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 2, 2024	/s/ Christopher D. Maher
		Christopher D. Maher
		Chairman and Chief Executive Officer
		(principal executive officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick S. Barrett, certify that:

1.I have reviewed this quarterly report on Form 10-Q of OceanFirst Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 2, 2024	/s/ Patrick S. Barrett
		Patrick S. Barrett
		Executive Vice President and Chief Financial Officer
		(principal financial officer)

EX-32.0

Exhibit 32.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADDED BY SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of OceanFirst Financial Corp. (the “Company”) on Form 10-Q for the period ending March 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.To my knowledge the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

/s/ Christopher D. Maher

Christopher D. Maher

Chairman and Chief Executive Officer

May 2, 2024

/s/ Patrick S. Barrett

Patrick S. Barrett

Executive Vice President and Chief Financial Officer

May 2, 2024

XML

Cover - shares	3 Months Ended
	Mar. 31, 2024	Apr. 29, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-11713
Entity Registrant Name	OceanFirst Financial Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-3412577
Entity Address, Address Line One	110 West Front Street,
Entity Address, City or Town	Red Bank,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07701
City Area Code	732
Local Phone Number	240-4500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		58,713,469
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001004702
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	OCFC
Security Exchange Name	NASDAQ
Depositary Shares
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of 7.0% Series A Non-Cumulative, perpetual preferred stock)
Trading Symbol	OCFCP
Security Exchange Name	NASDAQ

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 130,422	$ 153,718
Debt securities available-for-sale, at estimated fair value	744,944	753,892
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,058 at March 31, 2024 and $1,133 at December 31, 2023 (estimated fair value of $1,029,965 at March 31, 2024 and $1,068,438 at December 31, 2023)	1,128,666	1,159,735
Equity investments	103,201	100,163
Restricted equity investments, at cost	85,689	93,766
Loans receivable, net of allowance for loan credit losses of $67,173 at March 31, 2024 and $67,137 at December 31, 2023	10,068,209	10,136,721
Loans held-for-sale	4,702	5,166
Interest and dividends receivable	52,502	51,874
Premises and equipment, net	119,211	121,372
Bank owned life insurance	266,615	266,498
Assets held for sale	28	28
Goodwill	506,146	506,146
Core deposit intangible	8,669	9,513
Other assets	199,974	179,661
Total assets	13,418,978	13,538,253
Liabilities and Stockholders’ Equity
Deposits	10,236,851	10,434,949
Federal Home Loan Bank (“FHLB”) advances	658,436	848,636
Securities sold under agreements to repurchase with customers	66,798	73,148
Other borrowings	425,722	196,456
Advances by borrowers for taxes and insurance	28,187	22,407
Other liabilities	337,147	300,712
Total liabilities	11,753,141	11,876,308
Stockholders’ equity:
Preferred stock, $0.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, and 57,370 shares issued at both March 31, 2024 and December 31, 2023	1	1
Common stock, $0.01 par value, 150,000,000 shares authorized, 62,505,408 and 62,182,767 shares issued at March 31, 2024 and December 31, 2023, respectively; and 58,812,498 and 59,447,684 shares outstanding at March 31, 2024 and December 31, 2023, respectively	613	613
Additional paid-in capital	1,163,282	1,161,755
Retained earnings	608,355	592,542
Accumulated other comprehensive loss	(19,415)	(20,862)
Less: Unallocated common stock held by Employee Stock Ownership Plan ("ESOP")	(3,470)	(3,780)
Treasury stock, 3,692,910 and $2,735,083 shares at March 31, 2024 and December 31, 2023, respectively	(84,254)	(69,106)
OceanFirst Financial Corp. stockholders’ equity	1,665,112	1,661,163
Non-controlling interest	725	782
Total stockholders’ equity	1,665,837	1,661,945
Total liabilities and stockholders’ equity	$ 13,418,978	$ 13,538,253

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 1,058	$ 1,133
Securities held-to-maturity, fair value	1,029,965	1,068,438
Allowance for loan credit losses	$ 67,173	$ 67,137
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, liquidation preference, value	$ 1	$ 1
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	57,370	57,370
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	62,505,408	62,182,767
Common stock, shares outstanding (in shares)	58,812,498	59,447,684
Treasury stock, shares (in shares)	3,692,910	2,735,083

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest income:
Loans	$ 137,121	$ 121,720
Debt securities	19,861	14,286
Equity investments and other	4,620	3,028
Total interest income	161,602	139,034
Interest expense:
Deposits	59,855	21,330
Borrowed funds	15,523	18,902
Total interest expense	75,378	40,232
Net interest income	86,224	98,802
Provision for credit losses	591	3,013
Net interest income after provision for credit losses	85,633	95,789
Other income:
Bankcard services revenue	1,416	1,330
Net gain on sales of loans	357	20
Net gain (loss) on equity investments	1,923	(6,801)
Income from bank owned life insurance	1,862	1,281
Commercial loan swap income	138	701
Other	1,591	(229)
Total other income	12,286	2,073
Operating expenses:
Compensation and employee benefits	32,759	33,920
Occupancy	5,199	5,239
Equipment	1,130	1,205
Marketing	990	982
Federal deposit insurance and regulatory assessments	3,135	1,749
Data processing	5,956	6,154
Check card processing	1,050	1,281
Professional fees	2,732	5,098
Amortization of core deposit intangible	844	1,027
Branch consolidation expense, net	0	70
Merger related expenses	0	22
Other operating expense	4,877	4,562
Total operating expenses	58,672	61,309
Income before provision for income taxes	39,247	36,553
Provision for income taxes	10,637	8,654
Net income	28,610	27,899
Net (loss) income attributable to non-controlling interest	(57)	16
Net income attributable to OceanFirst Financial Corp.	28,667	27,883
Dividends on preferred shares	1,004	1,004
Net income available to common stockholders, basic	27,663	26,879
Net income available to common stockholders, diluted	$ 27,663	$ 26,879
Basic earnings per share (in dollars per share)	$ 0.47	$ 0.46
Diluted earnings per share (in dollars per share)	$ 0.47	$ 0.46
Average basic shares outstanding (in shares)	58,789	58,774
Average diluted shares outstanding (in shares)	58,791	58,918
Trust and asset management revenue
Other income:
Revenue	$ 526	$ 612
Fees and service charges
Other income:
Revenue	$ 4,473	$ 5,159

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 28,610	$ 27,899
Other comprehensive income:
Net unrealized gain on debt securities (net of tax expense of $634 in 2024 and $1,766 in 2023)	1,993	5,547
Accretion of unrealized loss on debt securities reclassified to held-to-maturity (net of tax expense of $42 in 2024 and $56 in 2023)	61	79
Unrealized (loss) gain on derivative hedges (net of tax benefit of $302 in 2024 and tax expense of $131 in 2023)	(949)	412
Reclassification adjustment for losses included in net income (net of tax expense of $109 in 2024 and $201 in 2023)	342	629
Total other comprehensive income, net of tax	1,447	6,667
Total comprehensive income	30,057	34,566
Less: comprehensive (loss) income attributable to non-controlling interest	(57)	16
Comprehensive income attributable to OceanFirst Financial Corp.	30,114	34,550
Less: Dividends on preferred shares	1,004	1,004
Total comprehensive income available to common stockholders	$ 29,110	$ 33,546

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Unrealized holding gain (loss), before adjustment, tax expense (benefit)	$ 634	$ 1,766
Other comprehensive income accretion of fair value adjustment on held to maturity securities tax	42	56
Other comprehensive income (loss), cash flow hedge, gain (loss), after reclassification, tax expense (benefit)	(302)	131
Reclassification adjustment from AOCI for sale of securities, tax expense (benefit)	$ 109	$ 201

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Employee Stock Ownership Plan	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Non-Controlling Interest
Beginning balance at Dec. 31, 2022	$ 1,585,464	$ (6,191)	$ 1	$ 612	$ 1,154,821	$ 540,507	$ (35,982)	$ (69,106)	$ 802
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,899					27,883			16
Other comprehensive income, net of tax	6,667						6,667
Stock compensation	1,828				1,828
Allocation of ESOP stock	664	603			61
Cash dividend	(11,755)					(11,755)
Exercise of stock options	608			1	1,297	(690)
Preferred stock dividend	(1,004)					(1,004)
Ending balance at Mar. 31, 2023	1,610,371	(5,588)	1	613	1,158,007	554,941	(29,315)	(69,106)	818
Beginning balance at Dec. 31, 2023	1,661,945	(3,780)	1	613	1,161,755	592,542	(20,862)	(69,106)	782
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,610					28,667			(57)
Other comprehensive income, net of tax	1,447						1,447
Stock compensation	1,541				1,541
Allocation of ESOP stock	267	310			(43)
Cash dividend	(11,850)					(11,850)
Repurchase shares of common stock	(15,119)				29			(15,148)
Preferred stock dividend	(1,004)					(1,004)
Ending balance at Mar. 31, 2024	$ 1,665,837	$ (3,470)	$ 1	$ 613	$ 1,163,282	$ 608,355	$ (19,415)	$ (84,254)	$ 725

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividend per share (in dollars per share)	$ 0.20	$ 0.20
Purchase of common stock (in shares)	957,827

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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 28,610	$ 27,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment	2,869	3,094
Allocation of ESOP stock	267	664
Stock compensation	1,541	1,828
Net excess tax expense on stock compensation	365	250
Amortization of servicing asset	19	15
Net premium amortization in excess of discount accretion on securities	14	1,093
Net amortization of deferred costs on borrowings	152	147
Amortization of core deposit intangible	844	1,027
Net accretion of purchase accounting adjustments	(947)	(1,267)
Net amortization of deferred fees/costs and premiums/discounts on loans	(588)	(138)
Provision for credit losses	591	3,013
Net gain on sale of fixed assets	0	(6)
Net loss on sales of available-for-sale securities	110	697
Net (gain) loss on equity investments	(1,923)	6,801
Net gain on sales of loans	(357)	(20)
Proceeds from sales of residential loans held for sale	30,322	3,881
Residential loans originated for sale	(29,501)	(5,056)
Increase in value of bank owned life insurance	(1,862)	(1,281)
Increase in interest and dividends receivable	(628)	(2,638)
Deferred tax provision (benefit)	1,422	(16)
(Increase) decrease in other assets	(20,997)	23,221
Increase (decrease) in other liabilities	35,789	(38,834)
Total adjustments	17,502	(3,525)
Net cash provided by operating activities	46,112	24,374
Cash flows from investing activities:
Net decrease (increase) in loans receivable	69,501	(120,505)
Purchase of debt securities available-for-sale	(6,628)	(4,287)
Purchase of debt securities held-to-maturity	(1,994)	(55,444)
Purchase of equity investments	(1,282)	(6,736)
Proceeds from maturities and calls of debt securities available-for-sale	5,610	15,500
Proceeds from maturities and calls of debt securities held-to-maturity	9,002	6,980
Proceeds from sales of debt securities available-for-sale	390	1,300
Proceeds from sale of equity investments	0	661
Principal repayments on debt securities available-for-sale	12,491	0
Principal repayments on debt securities held-to-maturity	24,371	24,273
Proceeds from bank owned life insurance	1,745	230
Proceeds from the redemption of restricted equity investments	20,850	58,129
Purchases of restricted equity investments	(12,773)	(64,596)
Purchases of premises and equipment	(680)	(2,153)
Net cash provided by (used in) investing activities	120,603	(146,648)
Cash flows from financing activities:
(Decrease) increase in deposits	(198,053)	317,973
(Decrease) increase in short-term borrowings	(6,373)	1,814
Net (repayment) proceeds from FHLB advances	(190,200)	135,400
Net proceeds from other borrowings	229,000	0
Increase in advances by borrowers for taxes and insurance	5,780	9,793
Exercise of stock options	0	608
Payment of employee taxes withheld from stock awards and phantom stock units	(2,192)	(2,308)
Purchase of treasury stock	(15,119)	0
Dividends paid	(12,854)	(12,759)
Net cash (used in) provided by financing activities	(190,011)	450,521
Net (decrease) increase in cash and due from banks and restricted cash	(23,296)	328,247
Cash and due from banks and restricted cash at beginning of period	153,718	167,986
Supplemental Disclosure of Cash Flow Information:
Cash and due from banks at beginning of period	153,718	167,946
Restricted cash at beginning of period	0	40
Cash and due from banks at end of period	130,422	496,193
Restricted cash at end of period	0	40
Cash and due from banks and restricted cash at end of period	130,422	496,233
Cash paid during the period for:
Interest	62,818	33,914
Income taxes	1,898	1,268
Non-cash activities:
Accretion of unrealized loss on securities reclassified to held-to-maturity	103	135
Net loan charge-offs (recoveries)	349	(47)
Transfer of securities from held-to-maturity to available-for-sale	$ 500	$ 0

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Basis of Presentation

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of: OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, and Country Property Holdings, Inc; and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”). All significant intercompany accounts and transactions have been eliminated in consolidation.

The interim consolidated financial statements reflect all normal and recurring adjustments, which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the full year 2024 or any other period. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the periods presented. Actual results could differ from these estimates.

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

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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Earnings per Share

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following reconciles shares outstanding for basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024	2023
Weighted average shares outstanding	59,207	59,291
Less: Unallocated ESOP shares	(189)	(302)
Unallocated incentive award shares	(229)	(215)
Average basic shares outstanding	58,789	58,774
Add: Effect of dilutive securities:
Incentive awards	2	144
Average diluted shares outstanding	58,791	58,918

For the three months ended March 31, 2024 and 2023, antidilutive stock options of 1,801,000 and 852,000, respectively, were excluded from the earnings per share calculation.

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Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

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

	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Securities Credit Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	65,818	$	—	$	(6,166)	$	59,652	$	—
Corporate debt securities	11,831		17		(1,178)		10,670		—
Asset-backed securities	289,632		113		(1,619)		288,126		—
Mortgage-backed securities (“MBS”):
Agency residential	291,759		1,460		(12)		293,207		—
Agency commercial	109,352		—		(16,063)		93,289		—
Total mortgage-backed securities	401,111		1,460		(16,075)		386,496		—
Total debt securities available-for-sale	$	768,392	$	1,590	$	(25,038)	$	744,944	$	—
Debt securities held-to-maturity:
State and municipal debt obligations	$	213,231	$	188	$	(15,535)	$	197,884	$	(36)
Corporate debt securities	66,583		192		(3,543)		63,232		(916)
Mortgage-backed securities:
Agency residential	747,094		178		(75,407)		671,865		—
Agency commercial	82,208		2		(4,312)		77,898		—
Non-agency commercial	20,608		—		(1,522)		19,086		(106)
Total mortgage-backed securities	849,910		180		(81,241)		768,849		(106)
Total debt securities held-to-maturity	$	1,129,724	$	560	$	(100,319)	$	1,029,965	$	(1,058)
Total debt securities	$	1,898,116	$	2,150	$	(125,357)	$	1,774,909	$	(1,058)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	66,490	$	—	$	(5,796)	$	60,694	$	—
Corporate debt securities	10,096		11		(981)		9,126		—
Asset-backed securities	295,796		—		(4,252)		291,544		—
Mortgage-backed securities:
Agency residential	298,107		183		(97)		298,193		—
Agency commercial	109,590		—		(15,255)		94,335		—
Total mortgage-backed securities	407,697		183		(15,352)		392,528		—
Total debt securities available-for-sale	$	780,079	$	194	$	(26,381)	$	753,892	$	—
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations	$	222,009	$	251	$	(14,550)	$	207,710	$	(39)
Corporate debt securities	69,809		391		(3,941)		66,259		(987)
Mortgage-backed securities:
Agency residential	765,632		901		(70,040)		696,493		—
Agency commercial	82,734		10		(3,678)		79,066		—
Non-agency commercial	20,684		—		(1,774)		18,910		(107)
Total mortgage-backed securities	869,050		911		(75,492)		794,469		(107)
Total debt securities held-to-maturity	$	1,160,868	$	1,553	$	(93,983)	$	1,068,438	$	(1,133)
Total debt securities	$	1,940,947	$	1,747	$	(120,364)	$	1,822,330	$	(1,133)

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024		2023
Allowance for securities credit losses
Beginning balance	$	(1,133)	$	(1,128)
Benefit for credit losses	75		85
Total ending allowance balance	$	(1,058)	$	(1,043)

The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2024, aggregated by credit quality indicator, are as follows (in thousands):

	Investment Grade		Non-Investment Grade/Non-rated		Total
As of March 31, 2024
State and municipal debt obligations	$	213,231	$	—	$	213,231
Corporate debt securities	53,047		13,536		66,583
Non-agency commercial MBS	20,608		—		20,608
Total debt securities held-to-maturity	$	286,886	$	13,536	$	300,422

There were $110,000 and $697,000 of realized losses on sale of debt securities available-for-sale for the three months ended March 31, 2024 and 2023, respectively. These realized gains/losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income.

The amortized cost and estimated fair value of debt securities at March 31, 2024 by contractual maturity are shown below (in thousands):

March 31, 2024	Amortized Cost		Estimated Fair Value
Less than one year	$	32,582	$	32,182
Due after one year through five years	194,788		180,665
Due after five years through ten years	194,267		189,112
Due after ten years	225,458		217,605
	$	647,095	$	619,564

Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2024, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $77.4 million, $60.8 million, and $289.6 million, respectively, and an estimated fair value of $72.9 million, $59.0 million, and $288.1 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.

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

	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	5,383	$	(14)	$	54,269	$	(6,152)	$	59,652	$	(6,166)
Corporate debt securities	1,432		(25)		7,496		(1,153)		8,928		(1,178)
Asset-backed securities	9,291		(9)		216,864		(1,610)		226,155		(1,619)
MBS:
Agency residential	23,921		(12)		—		—		23,921		(12)
Agency commercial	—		—		93,289		(16,063)		93,289		(16,063)
Total MBS	23,921		(12)		93,289		(16,063)		117,210		(16,075)
Total debt securities available-for-sale	40,027		(60)		371,918		(24,978)		411,945		(25,038)
Debt securities held-to-maturity:
State and municipal debt obligations	2,675		(30)		185,307		(15,505)		187,982		(15,535)
Corporate debt securities	2,996		(568)		57,739		(2,975)		60,735		(3,543)
MBS:
Agency residential	104,295		(1,702)		530,150		(73,705)		634,445		(75,407)
Agency commercial	19,736		(440)		57,153		(3,872)		76,889		(4,312)
Non-agency commercial	—		—		19,086		(1,522)		19,086		(1,522)
Total MBS	124,031		(2,142)		606,389		(79,099)		730,420		(81,241)
Total debt securities held-to-maturity	129,702		(2,740)		849,435		(97,579)		979,137		(100,319)
Total debt securities	$	169,729	$	(2,800)	$	1,221,353	$	(122,557)	$	1,391,082	$	(125,357)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	833	$	(2)	$	59,861	$	(5,794)	$	60,694	$	(5,796)
Corporate debt securities	1,543		(165)		6,116		(816)		7,659		(981)
Asset-backed securities	—		—		291,544		(4,252)		291,544		(4,252)
MBS:
Agency residential	169,000		(97)		—		—		169,000		(97)
Agency commercial	—		—		94,335		(15,255)		94,335		(15,255)
Total MBS	169,000		(97)		94,335		(15,255)		263,335		(15,352)
Total debt securities available-for-sale	171,376		(264)		451,856		(26,117)		623,232		(26,381)
Debt securities held-to-maturity:
State and municipal debt obligations	6,671		(23)		191,511		(14,527)		198,182		(14,550)
Corporate debt securities	3,084		(473)		58,386		(3,468)		61,470		(3,941)
MBS:
Agency residential	95,776		(693)		525,751		(69,347)		621,527		(70,040)
Agency commercial	18,902		(370)		55,051		(3,308)		73,953		(3,678)
Non-agency commercial	—		—		18,910		(1,774)		18,910		(1,774)
Total MBS	114,678		(1,063)		599,712		(74,429)		714,390		(75,492)
Total debt securities held-to-maturity	124,433		(1,559)		849,609		(92,424)		974,042		(93,983)
Total debt securities	$	295,809	$	(1,823)	$	1,301,465	$	(118,541)	$	1,597,274	$	(120,364)

The Company concluded that debt securities were not impaired at March 31, 2024 based on consideration of several factors. The Company noted that each issuer made all contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.

Equity Investments

At March 31, 2024 and December 31, 2023, the Company held equity investments of $103.2 million and $100.2 million, respectively. The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in other financial institutions and funds.

The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2024 and 2023 are shown in the table below (in thousands):

	Three Months Ended March 31,
	2024		2023
Net gain (loss) on equity investments	$	1,923	$	(6,801)
Less: Net losses recognized on equity investments sold	—		(4,608)
Unrealized gains (losses) recognized on equity investments still held	$	1,923	$	(2,193)

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Loans Receivable, Net

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Loans Receivable, Net

Loans Receivable, Net

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

	March 31,		December 31,
	2024		2023
Commercial:
Commercial real estate – investor	$	5,322,755	$	5,353,974
Commercial real estate – owner occupied	914,582		943,891
Commercial and industrial	677,176		666,532
Total commercial	6,914,513		6,964,397
Consumer:
Residential real estate	2,965,276		2,979,534
Home equity loans and lines and other consumer (“other consumer”)	245,859		250,664
Total consumer	3,211,135		3,230,198
Total loans receivable	10,125,648		10,194,595
Deferred origination costs, net of fees	9,734		9,263
Allowance for loan credit losses	(67,173)		(67,137)
Total loans receivable, net	$	10,068,209	$	10,136,721

The Company categorizes all loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:

    Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.

    Special Mention: Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

    Substandard: Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the collection or the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

    Doubtful: Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):

	2024		2023		2022		2021		2020		2019 and prior		Revolving lines of credit		Total
March 31, 2024
Commercial real estate - investor
Pass	$	48,428	$	136,697	$	1,170,068	$	1,327,264	$	525,806	$	1,352,769	$	644,938	$	5,205,970
Special Mention	—		—		—		2,389		—		42,787		12,695		57,871
Substandard	—		—		—		595		4,535		53,784		—		58,914
Total commercial real estate - investor	48,428		136,697		1,170,068		1,330,248		530,341		1,449,340		657,633		5,322,755
Commercial real estate - owner occupied
Pass	12,333		65,173		116,684		98,566		57,582		513,115		23,133		886,586
Special Mention	—		—		—		—		—		8,705		—		8,705
Substandard	—		—		—		—		—		18,672		619		19,291
Total commercial real estate - owner occupied	12,333		65,173		116,684		98,566		57,582		540,492		23,752		914,582
Commercial and industrial
Pass	12,487		122,952		65,864		18,212		7,671		55,600		377,278		660,064
Special Mention	—		—		—		—		—		170		2,239		2,409
Substandard	—		—		589		69		—		1,217		12,828		14,703
Total commercial and industrial	12,487		122,952		66,453		18,281		7,671		56,987		392,345		677,176
Residential real estate (1)
Pass	43,812		279,313		904,132		555,218		378,827		800,232		—		2,961,534
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		869		—		220		732		1,921		—		3,742
Total residential real estate	43,812		280,182		904,132		555,438		379,559		802,153		—		2,965,276
Other consumer (1)
Pass	5,247		31,232		19,401		20,089		12,440		126,222		29,339		243,970
Special Mention	—		—		—		—		—		298		—		298
Substandard	—		—		—		—		—		1,591		—		1,591
Total other consumer	5,247		31,232		19,401		20,089		12,440		128,111		29,339		245,859
Total loans	$	122,307	$	636,236	$	2,276,738	$	2,022,622	$	987,593	$	2,977,083	$	1,103,069	$	10,125,648

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

	2023		2022		2021		2020		2019		2018 and prior		Revolving lines of credit		Total
December 31, 2023
Commercial real estate - investor
Pass	$	137,028	$	1,165,955	$	1,328,012	$	529,745	$	490,438	$	930,337	$	679,804	$	5,261,319
Special Mention	—		—		2,413		790		1,446		22,147		—		26,796
Substandard	—		—		648		3,750		13,275		48,186		—		65,859
Total commercial real estate - investor	137,028		1,165,955		1,331,073		534,285		505,159		1,000,670		679,804		5,353,974
Commercial real estate - owner occupied
Pass	66,642		120,280		103,104		59,179		102,703		441,713		21,052		914,673
Special Mention	—		—		—		—		1,272		8,314		—		9,586
Substandard	—		—		—		—		2,019		16,900		713		19,632
Total commercial real estate - owner occupied	66,642		120,280		103,104		59,179		105,994		466,927		21,765		943,891
Commercial and industrial
Pass	112,914		64,770		19,473		8,645		7,778		51,082		383,013		647,675
Special Mention	—		—		—		—		—		184		2,859		3,043
Substandard	—		622		117		—		145		1,385		13,545		15,814
Total commercial and industrial	112,914		65,392		19,590		8,645		7,923		52,651		399,417		666,532
Residential real estate (1)
Pass	283,296		916,153		564,515		388,392		223,247		600,118		—		2,975,721
Special Mention	—		—		—		—		131		271		—		402
Substandard	323		366		—		258		487		1,977		—		3,411
Total residential real estate	283,619		916,519		564,515		388,650		223,865		602,366		—		2,979,534
Other consumer (1)
Pass	32,859		19,918		20,737		12,675		12,937		118,486		30,658		248,270
Special Mention	—		172		—		—		—		386		—		558
Substandard	—		—		—		—		6		1,698		132		1,836
Total other consumer	32,859		20,090		20,737		12,675		12,943		120,570		30,790		250,664
Total loans	$	633,062	$	2,288,236	$	2,039,019	$	1,003,434	$	855,884	$	2,243,184	$	1,131,776	$	10,194,595

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

An analysis of the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Commercial Real Estate – Investor		Commercial Real Estate – Owner Occupied		Commercial and  Industrial		Residential Real Estate		Other Consumer		Total
For the three months ended March 31, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
(Benefit) provision for credit losses	(865)		(107)		769		9		579		385
Charge-offs (1)	(46)		—		—		—		(395)		(441)
Recoveries	2		4		5		66		15		92
Balance at end of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
For the three months ended March 31, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	21,070	$	4,423	$	5,695	$	24,530	$	1,106	$	56,824
Provision (benefit) for credit losses	1,379		(304)		131		2,390		(272)		3,324
Charge-offs (1)	—		(6)		(3)		—		(1)		(10)
Recoveries	2		3		4		8		40		57
Balance at end of period	$	22,451	$	4,116	$	5,827	$	26,928	$	873	$	60,195

(1) Gross charge-offs for the three months ended March 31, 2024 of $441,000 included one commercial real estate loan of $46,000, which was originated in 2021. The remainder of the charge-offs were related to loans that were originated prior to 2019. Gross charge-offs for the three months ended March 31, 2023 of $10,000 related to loans that were originated prior to 2018.

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At March 31, 2024 and December 31, 2023, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $16.0 million and $15.2 million, respectively, commercial real estate - owner occupied of $3.4 million and $352,000, respectively, and commercial and industrial of $567,000 and $304,000, respectively. In addition, the Company had residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, with an amortized cost balance of $2.3 million and $2.6 million at March 31, 2024 and December 31, 2023, respectively. 

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

	March 31,		December 31,
	2024		2023
Commercial real estate – investor (1)	$	21,507	$	20,820
Commercial real estate – owner occupied	3,355		351
Commercial and industrial	567		304
Residential real estate	7,181		5,542
Other consumer	2,401		2,531
	$	35,011	$	29,548

(1) At March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

At March 31, 2024 and December 31, 2023, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At March 31, 2024 and December 31, 2023, there were no loans that were past due 90 days or greater and still accruing interest.

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
March 31, 2024
Commercial real estate – investor (1)	$	4,746	$	—	$	16,004	$	20,750	$	5,302,005	$	5,322,755
Commercial real estate – owner occupied	531		368		318		1,217		913,365		914,582
Commercial and industrial	3		—		567		570		676,606		677,176
Residential real estate	10,793		—		3,742		14,535		2,950,741		2,965,276
Other consumer	795		298		1,591		2,684		243,175		245,859
	$	16,868	$	666	$	22,222	$	39,756	$	10,085,892	$	10,125,648
December 31, 2023
Commercial real estate – investor (1)	$	978	$	684	$	15,201	$	16,863	$	5,337,111	$	5,353,974
Commercial real estate – owner occupied	335		352		293		980		942,911		943,891
Commercial and industrial	163		—		145		308		666,224		666,532
Residential real estate	14,858		402		3,411		18,671		2,960,863		2,979,534
Other consumer	872		558		1,836		3,266		247,398		250,664
	$	17,206	$	1,996	$	20,886	$	40,088	$	10,154,507	$	10,194,595

(1) At March 31, 2024 and December 31, 2023, 90 days or greater past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The Company adopted Accounting Standards Update (“ASU”) 2022-02 on January 1, 2023. Since adoption, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of March 31, 2024 and December 31, 2023, loans with modifications to borrowers experiencing financial difficulty totaled $12.0 million and $8.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of March 31, 2024 or December 31, 2023.

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023 (in thousands):

	Term Extension		Combination of Term Extension and Interest Rate Reduction		Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended March 31, 2024
Commercial real estate – owner occupied	$	—	$	—	$	2,994	$	2,994	0.33	%
Residential real estate	129		—		—		129		—
Other consumer	—		148		—		148		0.06
	$	129	$	148	$	2,994	$	3,271	—	%
For the three months ended March 31, 2023
Residential real estate	$	435	$	—	$	—	$	435	0.02	%
Other consumer	40		—		—		40		0.02
	$	475	$	—	$	—	$	475	—	%

The modifications during the periods presented had an insignificant financial effect on the Company.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2024 and since adoption of the standard for March 31, 2023 (in thousands):

	Current		60 - 89 Days past due		90 Days or Greater past due			Total
March 31, 2024
Commercial real estate – investor	$	7,758	$	—	$	—		$	7,758
Commercial real estate – owner occupied	2,994		—		—			2,994
Residential real estate	258		—		153		(1)	411
Other consumer	419		—		—			419
	$	11,429	$	—	$	153		$	11,582
March 31, 2023
Residential real estate	$	297	$	138	$	—		$	435
Other consumer	40		—		—			40
	$	337	$	138	$	—		$	475

(1) Represents one residential loan that defaulted during the period and had been modified within the previous 12 months. There were no such loans that defaulted during the three months ended March 31, 2023.

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Deposits

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Other Disclosure [Abstract]

Deposits

Deposits

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

Type of Account	March 31,		December 31,
	2024		2023
Non-interest-bearing	$	1,639,828	$	1,657,119
Interest-bearing checking	3,865,699		3,911,766
Money market deposit	1,150,979		1,021,805
Savings	1,260,309		1,398,837
Time deposits	2,320,036		2,445,422
Total deposits	$	10,236,851	$	10,434,949

Included in time deposits at March 31, 2024 and December 31, 2023 was $373.9 million and $412.0 million, respectively, of deposits of $250,000 or more. Time deposits also include brokered deposits of $543.4 million and $631.5 million at March 31, 2024 and December 31, 2023, respectively.

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Borrowed Funds

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

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

	March 31,		December 31,
	2024		2023
FHLB advances	$	658,436	$	848,636
Securities sold under agreements to repurchase with customers	66,798		73,148
Other borrowings	425,722		196,456
Total borrowed funds	$	1,150,956	$	1,118,240

At March 31, 2024, there were $608.6 million of short-term advances and $49.8 million outstanding in overnight borrowings from the FHLB, as compared to $848.6 million and $0 at December 31, 2023, respectively.

At March 31, 2024, there were $425.7 million of other borrowings as compared to $196.5 million at December 31, 2023 due to a shift in funding sources from FHLB to other borrowings.

Pledged assets

The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands):

	Loans		Debt securities		Total
March 31, 2024
FHLB and FRB	$	7,336,405	$	1,244,634	$	8,581,039
Repurchase agreements	—		101,526		101,526
Total pledged assets	$	7,336,405	$	1,346,160	$	8,682,565
December 31, 2023
FHLB and FRB	$	7,255,671	$	1,051,558	$	8,307,229
Repurchase agreements	—		103,416		103,416
Total pledged assets	$	7,255,671	$	1,154,974	$	8,410,645

The securities pledged, which collateralize the repurchase agreements are delivered to the lender, with whom each transaction is executed, or to a third-party custodian. The lender, who may sell, loan or otherwise dispose of such securities to other parties in the normal course of their operations, agrees to resell to the Company substantially the same securities at the maturity of the repurchase agreements.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

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

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means.

Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

Assets and Liabilities Measured at Fair Value

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Debt Securities Available-for-Sale

Debt securities classified as available-for-sale are reported at fair value. Fair value of U.S. Treasuries are determined using quoted prices in active markets (Level 1). The majority of the other debt securities are determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or security industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities.

Equity Investments

Equity investments with readily determinable fair value are reported at fair value. Fair value for these investments is primarily determined using a quoted price in an active market or exchange (Level 1) or using inputs other than quoted prices that are based on market observable information (Level 2). Equity investments without readily determinable fair values are carried at cost less impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (measurement alternative). Certain equity investments without readily determinable fair values are measured at net asset value (“NAV”) per share as a practical expedient, which are excluded from the fair value hierarchy levels in the table below.

Interest Rate Derivatives

The Company’s interest rate swaps and cap contracts are reported at fair value utilizing discounted cash flow models provided by an independent, third-party and observable market data (Level 2). When entering into an interest rate swap or cap contract, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of the contract counterparty.

Loans Individually Measured for Impairment

Loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is generally based on independent appraisals (Level 3), which may be adjusted by management for qualitative factors, such as economic factors and estimated liquidation expenses.

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

			Fair Value Measurements at Reporting Date Using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	744,944	$	46,989	$	697,955	$	—
Equity investments	54,788		—		54,788		—
Interest rate derivative asset	104,149		—		104,149		—
Interest rate derivative liability	(105,118)		—		(105,118)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	48,413		—		—		44,738
Loans measured for impairment based on the fair value of the underlying collateral (3)	22,206		—		—		22,206
December 31, 2023
Items measured on a recurring basis:
Debt securities available-for-sale	$	753,892	$	43,036	$	710,856	$	—
Equity investments	53,166		—		53,166		—
Interest rate derivative asset	87,776		—		87,776		—
Interest rate derivative liability	(87,848)		—		(87,848)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	46,997		—		—		43,576
Loans measured for impairment based on the fair value of the underlying collateral (3)	18,509		—		—		18,509

(1)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $44.7 million and $43.6 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the three months ended March 31, 2024 and the year ended December 31, 2023.

(2)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $3.7 million and $3.4 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments.

The Company recognizes transfers between levels of the valuation hierarchy at the end of the applicable reporting periods. There were no assets in Level 3 that were recognized at fair value on a recurring basis or transfers into or out of Level 3 for the three months ended March 31, 2024 and 2023.

Assets and Liabilities Disclosed at Fair Value

A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below.

Cash and Due from Banks

For cash and due from banks, the carrying amount approximates fair value.

Debt Securities Held-to-Maturity

Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt securities utilizing Level 2 inputs. Most of the Company’s debt securities are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities.

Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and decides as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities.

Restricted Equity Investments

The fair value of these investments, which are primarily Federal Home Loan Bank of New York and Federal Reserve Bank stock, is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment as stipulated by the respective entities.

Loans Receivable and Loans Held-for-Sale

Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential real estate, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms.

Fair value of performing and non-performing loans, which is based on an exit price notion, was estimated by discounting the future cash flows, net of estimated prepayments, at market discount rates that reflect the credit and interest rate risk inherent in the loan.

Loans held for sale are carried at the lower of unpaid principal balance, net, or estimated fair value on an aggregate basis. Estimated fair value is generally determined based on bid quotations from secondary markets.

Deposits Other than Time Deposits

The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts is, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported.

Time Deposits

The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities.

Securities Sold Under Agreements to Repurchase with Customers

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

FHLB Advances and Other Borrowings

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

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

			Fair Value Measurements at Reporting Date Using:
	Book Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Financial Assets:
Cash and due from banks	$	130,422	$	130,422	$	—	$	—
Debt securities held-to-maturity	1,128,666		—		1,029,965		—
Restricted equity investments	85,689		—		—		85,689
Loans receivable, net and loans held-for-sale	10,072,911		—		—		9,486,375
Financial Liabilities:
Deposits other than time deposits (1)	7,916,815		—		7,916,815		—
Time deposits	2,320,036		—		2,313,553		—
FHLB advances and other borrowings	1,084,158		—		1,068,119		—
Securities sold under agreements to repurchase with customers	66,798		66,798		—		—
December 31, 2023
Financial Assets:
Cash and due from banks	$	153,718	$	153,718	$	—	$	—
Debt securities held-to-maturity	1,159,735		—		1,068,438		—
Restricted equity investments	93,766		—		—		93,766
Loans receivable, net and loans held-for-sale	10,141,887		—		—		9,606,498
Financial Liabilities:
Deposits other than time deposits (1)	7,989,527		—		7,989,527		—
Time deposits	2,445,422		—		2,421,058		—
FHLB advances and other borrowings	1,045,092		—		1,008,351		—
Securities sold under agreements to repurchase with customers	73,148		73,148		—		—

(1)    The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, bank owned life insurance, deferred tax assets and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

The Company enters into derivative financial instruments which involve, to varying degrees, interest rate and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes derivative financial instruments to accommodate the business needs of its customers as well as to economically hedge the exposure that this creates for the Company. Additionally, the Company enters into certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The Company does not use derivative financial instruments for trading purposes.

Customer Derivatives – Interest Rate Swaps and Cap Contracts

Derivatives Not Designated as Hedging Instruments

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The Company also enters into interest rate cap contracts that enable commercial loan customers to lock in a cap on a variable-rate commercial loan agreement. This feature prevents the loan from repricing to a level that exceeds the cap contract’s specified interest rate, which serves to hedge the risk from rising interest rates. The Company then enters into an offsetting interest rate cap contract with a third party in order to economically hedge its exposure through the customer agreement.

These interest rate swaps and cap contracts with both the customers and third parties are not designated as hedges under ASC Topic 815, Derivatives and Hedging, therefore changes in fair value are reported in earnings. As the interest rate swaps and cap contracts are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC Topic 820, Fair Value Measurements. The Company recognized gains of $13,000 and losses of $22,000 in commercial loan swap income resulting from the fair value adjustments for the three months ended March 31, 2024 and 2023, respectively.

Derivatives Designated as Hedging Instruments

During 2022, the Company entered into a three-year interest rate swap intended to add stability to its net interest income and to manage its exposure to future interest rate movements associated with a pool of floating rate commercial loans. The swap requires the Company to pay variable-rate amounts indexed to one-month term Secured Overnight Financing Rate (“SOFR”) to the counterparty in exchange for the receipt of fixed-rate amounts at 4.0% from the counterparty. The swap was designated and qualified as a cash flow hedge under ASC Topic 815, Derivatives and Hedging. The changes in the fair value of cash flow hedges are initially reported in other comprehensive income. Amounts are subsequently reclassified from accumulated other comprehensive income to earnings when the hedged transactions occur, specifically within the same line item as the hedged item (interest income). Therefore, a portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are made or received on the Company’s interest rate swaps.

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

	Three Months Ended March 31,
	2024		2023
AOCL balance at beginning of period, net of tax	$	(36)	$	(25)
Unrealized (losses) gains recognized in OCI	(949)		412
Losses reclassified from AOCI into interest income	259		101
(AOCL) AOCI balance at end of period, net of tax	$	(726)	$	488

During the twelve months ending March 31, 2025, the Company estimates that an additional $932,000 will be reclassified as a reduction to interest income.

The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands):

	Notional		Fair Value
			Other assets		Other liabilities
As of March 31, 2024
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,439,968	$	104,149	$	104,161
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		957
Total Derivatives	$	1,539,968	$	104,149	$	105,118
As of December 31, 2023
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,418,276	$	87,776	$	87,801
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		47
Total Derivatives	$	1,518,276	$	87,776	$	87,848

Credit Risk-Related Contingent Features

The Company is exposed to credit risk in the event of nonperformance by the interest rate derivative counterparty. The Company minimizes this risk by being a party to International Swaps and Derivatives Association agreements with third-party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties was $0 at both March 31, 2024 and December 31, 2023. The amount of collateral received from third parties was $106.2 million and $88.3 million at March 31, 2024 and December 31, 2023, respectively. The amount of collateral posted with third parties and received from third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $105.1 million and $87.8 million at March 31, 2024 and December 31, 2023, respectively.

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

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Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which has a lease term through 2029.

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

		March 31,		December 31,
		2024		2023
Lease ROU Assets	Classification
Operating lease ROU assets	Other assets	$	17,963	$	18,979
Finance lease ROU asset	Premises and equipment, net	1,246		1,304
Total lease ROU assets		$	19,209	$	20,283
Lease Liabilities
Operating lease liabilities (1)	Other liabilities	$	19,060	$	20,018
Finance lease liability	Other borrowings	1,620		1,685
Total lease liabilities		$	20,680	$	21,703

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $5.7 million and $5.9 million at March 31, 2024 and December 31, 2023, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31,		December 31,
	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	6.39 years		6.52 years
Finance lease	5.35 years		5.60 years
Weighted-Average Discount Rate
Operating leases	3.03	%	3.02	%
Finance lease	5.63		5.63

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

	Three Months Ended March 31,
	2024		2023
Lease Expense
Operating lease expense	$	1,159	$	1,145
Finance lease expense:
Amortization of ROU assets	58		58
Interest on lease liabilities (1)	23		26
Total	$	1,240	$	1,229
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,101	$	1,139
Operating cash flows from finance leases	23		26
Financing cash flows from finance leases	65		61

(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):

	Finance Lease		Operating Leases
For the Year Ending December 31,
2024	$	262	$	3,274
2025	350		4,401
2026	350		3,833
2027	350		2,678
2028	350		1,524
Thereafter	209		5,545
Total	1,871		21,255
Less: Imputed interest	(251)		(2,195)
Total lease liabilities	$	1,620	$	19,060

Leases

Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company’s leases are comprised of real estate property for branches, automated teller machine locations and office space with terms extending through 2038. The Company has one existing finance lease, which has a lease term through 2029.

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

		March 31,		December 31,
		2024		2023
Lease ROU Assets	Classification
Operating lease ROU assets	Other assets	$	17,963	$	18,979
Finance lease ROU asset	Premises and equipment, net	1,246		1,304
Total lease ROU assets		$	19,209	$	20,283
Lease Liabilities
Operating lease liabilities (1)	Other liabilities	$	19,060	$	20,018
Finance lease liability	Other borrowings	1,620		1,685
Total lease liabilities		$	20,680	$	21,703

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $5.7 million and $5.9 million at March 31, 2024 and December 31, 2023, respectively.

The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, ASC Topic 842, Leases requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is not readily determinable, the Company generally utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31,		December 31,
	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	6.39 years		6.52 years
Finance lease	5.35 years		5.60 years
Weighted-Average Discount Rate
Operating leases	3.03	%	3.02	%
Finance lease	5.63		5.63

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

	Three Months Ended March 31,
	2024		2023
Lease Expense
Operating lease expense	$	1,159	$	1,145
Finance lease expense:
Amortization of ROU assets	58		58
Interest on lease liabilities (1)	23		26
Total	$	1,240	$	1,229
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,101	$	1,139
Operating cash flows from finance leases	23		26
Financing cash flows from finance leases	65		61

(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):

	Finance Lease		Operating Leases
For the Year Ending December 31,
2024	$	262	$	3,274
2025	350		4,401
2026	350		3,833
2027	350		2,678
2028	350		1,524
Thereafter	209		5,545
Total	1,871		21,255
Less: Imputed interest	(251)		(2,195)
Total lease liabilities	$	1,620	$	19,060

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Variable Interest Entity

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

Variable Interest Entity

The Company accounts for Trident as a variable interest entity (“VIE”) under ASC 810, Consolidation, for which the Company is considered the primary beneficiary (i.e. the party that has a controlling financial interest). In accordance with ASC 810, Consolidation, the Company has consolidated Trident’s assets and liabilities.

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

	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	23,365	$	22,151
Other assets	551		606
Total assets	23,916		22,757
Other liabilities	22,104		20,803
Net assets	$	1,812	$	1,954

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 28,667	$ 27,883

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

The consolidated financial statements include the accounts of: OceanFirst Financial Corp. (the “Company”); its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc.; the Bank’s direct and indirect wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., OceanFirst Management Corp., OceanFirst Realty Corp., Casaba Real Estate Holdings Corporation, and Country Property Holdings, Inc; and a majority controlling interest in Trident Abstract Title Agency, LLC (“Trident”). All significant intercompany accounts and transactions have been eliminated in consolidation.

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of Reconciliation of Shares Outstanding for Basic and Diluted Earnings Per Share

The following reconciles shares outstanding for basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024	2023
Weighted average shares outstanding	59,207	59,291
Less: Unallocated ESOP shares	(189)	(302)
Unallocated incentive award shares	(229)	(215)
Average basic shares outstanding	58,789	58,774
Add: Effect of dilutive securities:
Incentive awards	2	144
Average diluted shares outstanding	58,791	58,918

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Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Debt Securities, Available-for-Sale and Held-to-Maturity

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

	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Securities Credit Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	65,818	$	—	$	(6,166)	$	59,652	$	—
Corporate debt securities	11,831		17		(1,178)		10,670		—
Asset-backed securities	289,632		113		(1,619)		288,126		—
Mortgage-backed securities (“MBS”):
Agency residential	291,759		1,460		(12)		293,207		—
Agency commercial	109,352		—		(16,063)		93,289		—
Total mortgage-backed securities	401,111		1,460		(16,075)		386,496		—
Total debt securities available-for-sale	$	768,392	$	1,590	$	(25,038)	$	744,944	$	—
Debt securities held-to-maturity:
State and municipal debt obligations	$	213,231	$	188	$	(15,535)	$	197,884	$	(36)
Corporate debt securities	66,583		192		(3,543)		63,232		(916)
Mortgage-backed securities:
Agency residential	747,094		178		(75,407)		671,865		—
Agency commercial	82,208		2		(4,312)		77,898		—
Non-agency commercial	20,608		—		(1,522)		19,086		(106)
Total mortgage-backed securities	849,910		180		(81,241)		768,849		(106)
Total debt securities held-to-maturity	$	1,129,724	$	560	$	(100,319)	$	1,029,965	$	(1,058)
Total debt securities	$	1,898,116	$	2,150	$	(125,357)	$	1,774,909	$	(1,058)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	66,490	$	—	$	(5,796)	$	60,694	$	—
Corporate debt securities	10,096		11		(981)		9,126		—
Asset-backed securities	295,796		—		(4,252)		291,544		—
Mortgage-backed securities:
Agency residential	298,107		183		(97)		298,193		—
Agency commercial	109,590		—		(15,255)		94,335		—
Total mortgage-backed securities	407,697		183		(15,352)		392,528		—
Total debt securities available-for-sale	$	780,079	$	194	$	(26,381)	$	753,892	$	—
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations	$	222,009	$	251	$	(14,550)	$	207,710	$	(39)
Corporate debt securities	69,809		391		(3,941)		66,259		(987)
Mortgage-backed securities:
Agency residential	765,632		901		(70,040)		696,493		—
Agency commercial	82,734		10		(3,678)		79,066		—
Non-agency commercial	20,684		—		(1,774)		18,910		(107)
Total mortgage-backed securities	869,050		911		(75,492)		794,469		(107)
Total debt securities held-to-maturity	$	1,160,868	$	1,553	$	(93,983)	$	1,068,438	$	(1,133)
Total debt securities	$	1,940,947	$	1,747	$	(120,364)	$	1,822,330	$	(1,133)

Schedule of Allowance for Credit Losses for Debt Securities Held-to-Maturity

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024		2023
Allowance for securities credit losses
Beginning balance	$	(1,133)	$	(1,128)
Benefit for credit losses	75		85
Total ending allowance balance	$	(1,058)	$	(1,043)

Schedule of Amortized Cost of Debt Securities Held-to-Maturity, Aggregated by Credit Quality Indicator

Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2024, aggregated by credit quality indicator, are as follows (in thousands):

	Investment Grade		Non-Investment Grade/Non-rated		Total
As of March 31, 2024
State and municipal debt obligations	$	213,231	$	—	$	213,231
Corporate debt securities	53,047		13,536		66,583
Non-agency commercial MBS	20,608		—		20,608
Total debt securities held-to-maturity	$	286,886	$	13,536	$	300,422

Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

The amortized cost and estimated fair value of debt securities at March 31, 2024 by contractual maturity are shown below (in thousands):

March 31, 2024	Amortized Cost		Estimated Fair Value
Less than one year	$	32,582	$	32,182
Due after one year through five years	194,788		180,665
Due after five years through ten years	194,267		189,112
Due after ten years	225,458		217,605
	$	647,095	$	619,564

Schedule of Estimated Fair Value and Unrealized Losses for Debt Securities Available-for-Sale and Held-to-Maturity

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

	Less than 12 months				12 months or longer				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations	$	5,383	$	(14)	$	54,269	$	(6,152)	$	59,652	$	(6,166)
Corporate debt securities	1,432		(25)		7,496		(1,153)		8,928		(1,178)
Asset-backed securities	9,291		(9)		216,864		(1,610)		226,155		(1,619)
MBS:
Agency residential	23,921		(12)		—		—		23,921		(12)
Agency commercial	—		—		93,289		(16,063)		93,289		(16,063)
Total MBS	23,921		(12)		93,289		(16,063)		117,210		(16,075)
Total debt securities available-for-sale	40,027		(60)		371,918		(24,978)		411,945		(25,038)
Debt securities held-to-maturity:
State and municipal debt obligations	2,675		(30)		185,307		(15,505)		187,982		(15,535)
Corporate debt securities	2,996		(568)		57,739		(2,975)		60,735		(3,543)
MBS:
Agency residential	104,295		(1,702)		530,150		(73,705)		634,445		(75,407)
Agency commercial	19,736		(440)		57,153		(3,872)		76,889		(4,312)
Non-agency commercial	—		—		19,086		(1,522)		19,086		(1,522)
Total MBS	124,031		(2,142)		606,389		(79,099)		730,420		(81,241)
Total debt securities held-to-maturity	129,702		(2,740)		849,435		(97,579)		979,137		(100,319)
Total debt securities	$	169,729	$	(2,800)	$	1,221,353	$	(122,557)	$	1,391,082	$	(125,357)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations	$	833	$	(2)	$	59,861	$	(5,794)	$	60,694	$	(5,796)
Corporate debt securities	1,543		(165)		6,116		(816)		7,659		(981)
Asset-backed securities	—		—		291,544		(4,252)		291,544		(4,252)
MBS:
Agency residential	169,000		(97)		—		—		169,000		(97)
Agency commercial	—		—		94,335		(15,255)		94,335		(15,255)
Total MBS	169,000		(97)		94,335		(15,255)		263,335		(15,352)
Total debt securities available-for-sale	171,376		(264)		451,856		(26,117)		623,232		(26,381)
Debt securities held-to-maturity:
State and municipal debt obligations	6,671		(23)		191,511		(14,527)		198,182		(14,550)
Corporate debt securities	3,084		(473)		58,386		(3,468)		61,470		(3,941)
MBS:
Agency residential	95,776		(693)		525,751		(69,347)		621,527		(70,040)
Agency commercial	18,902		(370)		55,051		(3,308)		73,953		(3,678)
Non-agency commercial	—		—		18,910		(1,774)		18,910		(1,774)
Total MBS	114,678		(1,063)		599,712		(74,429)		714,390		(75,492)
Total debt securities held-to-maturity	124,433		(1,559)		849,609		(92,424)		974,042		(93,983)
Total debt securities	$	295,809	$	(1,823)	$	1,301,465	$	(118,541)	$	1,597,274	$	(120,364)

Schedule of Realized and Unrealized Gains or Losses on Equity Securities

The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2024 and 2023 are shown in the table below (in thousands):

	Three Months Ended March 31,
	2024		2023
Net gain (loss) on equity investments	$	1,923	$	(6,801)
Less: Net losses recognized on equity investments sold	—		(4,608)
Unrealized gains (losses) recognized on equity investments still held	$	1,923	$	(2,193)

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Loans Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Schedule of Loans Receivable, Net

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

	March 31,		December 31,
	2024		2023
Commercial:
Commercial real estate – investor	$	5,322,755	$	5,353,974
Commercial real estate – owner occupied	914,582		943,891
Commercial and industrial	677,176		666,532
Total commercial	6,914,513		6,964,397
Consumer:
Residential real estate	2,965,276		2,979,534
Home equity loans and lines and other consumer (“other consumer”)	245,859		250,664
Total consumer	3,211,135		3,230,198
Total loans receivable	10,125,648		10,194,595
Deferred origination costs, net of fees	9,734		9,263
Allowance for loan credit losses	(67,173)		(67,137)
Total loans receivable, net	$	10,068,209	$	10,136,721

Schedule of Total Loans by Year of Origination, Internally Assigned Credit Grades and Risk Characteristics

The following tables summarize total loans by year of origination, internally assigned credit grades and risk characteristics (in thousands):

	2024		2023		2022		2021		2020		2019 and prior		Revolving lines of credit		Total
March 31, 2024
Commercial real estate - investor
Pass	$	48,428	$	136,697	$	1,170,068	$	1,327,264	$	525,806	$	1,352,769	$	644,938	$	5,205,970
Special Mention	—		—		—		2,389		—		42,787		12,695		57,871
Substandard	—		—		—		595		4,535		53,784		—		58,914
Total commercial real estate - investor	48,428		136,697		1,170,068		1,330,248		530,341		1,449,340		657,633		5,322,755
Commercial real estate - owner occupied
Pass	12,333		65,173		116,684		98,566		57,582		513,115		23,133		886,586
Special Mention	—		—		—		—		—		8,705		—		8,705
Substandard	—		—		—		—		—		18,672		619		19,291
Total commercial real estate - owner occupied	12,333		65,173		116,684		98,566		57,582		540,492		23,752		914,582
Commercial and industrial
Pass	12,487		122,952		65,864		18,212		7,671		55,600		377,278		660,064
Special Mention	—		—		—		—		—		170		2,239		2,409
Substandard	—		—		589		69		—		1,217		12,828		14,703
Total commercial and industrial	12,487		122,952		66,453		18,281		7,671		56,987		392,345		677,176
Residential real estate (1)
Pass	43,812		279,313		904,132		555,218		378,827		800,232		—		2,961,534
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		869		—		220		732		1,921		—		3,742
Total residential real estate	43,812		280,182		904,132		555,438		379,559		802,153		—		2,965,276
Other consumer (1)
Pass	5,247		31,232		19,401		20,089		12,440		126,222		29,339		243,970
Special Mention	—		—		—		—		—		298		—		298
Substandard	—		—		—		—		—		1,591		—		1,591
Total other consumer	5,247		31,232		19,401		20,089		12,440		128,111		29,339		245,859
Total loans	$	122,307	$	636,236	$	2,276,738	$	2,022,622	$	987,593	$	2,977,083	$	1,103,069	$	10,125,648

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

	2023		2022		2021		2020		2019		2018 and prior		Revolving lines of credit		Total
December 31, 2023
Commercial real estate - investor
Pass	$	137,028	$	1,165,955	$	1,328,012	$	529,745	$	490,438	$	930,337	$	679,804	$	5,261,319
Special Mention	—		—		2,413		790		1,446		22,147		—		26,796
Substandard	—		—		648		3,750		13,275		48,186		—		65,859
Total commercial real estate - investor	137,028		1,165,955		1,331,073		534,285		505,159		1,000,670		679,804		5,353,974
Commercial real estate - owner occupied
Pass	66,642		120,280		103,104		59,179		102,703		441,713		21,052		914,673
Special Mention	—		—		—		—		1,272		8,314		—		9,586
Substandard	—		—		—		—		2,019		16,900		713		19,632
Total commercial real estate - owner occupied	66,642		120,280		103,104		59,179		105,994		466,927		21,765		943,891
Commercial and industrial
Pass	112,914		64,770		19,473		8,645		7,778		51,082		383,013		647,675
Special Mention	—		—		—		—		—		184		2,859		3,043
Substandard	—		622		117		—		145		1,385		13,545		15,814
Total commercial and industrial	112,914		65,392		19,590		8,645		7,923		52,651		399,417		666,532
Residential real estate (1)
Pass	283,296		916,153		564,515		388,392		223,247		600,118		—		2,975,721
Special Mention	—		—		—		—		131		271		—		402
Substandard	323		366		—		258		487		1,977		—		3,411
Total residential real estate	283,619		916,519		564,515		388,650		223,865		602,366		—		2,979,534
Other consumer (1)
Pass	32,859		19,918		20,737		12,675		12,937		118,486		30,658		248,270
Special Mention	—		172		—		—		—		386		—		558
Substandard	—		—		—		—		6		1,698		132		1,836
Total other consumer	32,859		20,090		20,737		12,675		12,943		120,570		30,790		250,664
Total loans	$	633,062	$	2,288,236	$	2,039,019	$	1,003,434	$	855,884	$	2,243,184	$	1,131,776	$	10,194,595

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

Schedule of Analysis of Allowance for Credit Losses on Loans

An analysis of the allowance for credit losses on loans for the three months ended March 31, 2024 and 2023 was as follows (in thousands):

	Commercial Real Estate – Investor		Commercial Real Estate – Owner Occupied		Commercial and  Industrial		Residential Real Estate		Other Consumer		Total
For the three months ended March 31, 2024
Allowance for credit losses on loans
Balance at beginning of period	$	27,899	$	4,354	$	6,867	$	27,029	$	988	$	67,137
(Benefit) provision for credit losses	(865)		(107)		769		9		579		385
Charge-offs (1)	(46)		—		—		—		(395)		(441)
Recoveries	2		4		5		66		15		92
Balance at end of period	$	26,990	$	4,251	$	7,641	$	27,104	$	1,187	$	67,173
For the three months ended March 31, 2023
Allowance for credit losses on loans
Balance at beginning of period	$	21,070	$	4,423	$	5,695	$	24,530	$	1,106	$	56,824
Provision (benefit) for credit losses	1,379		(304)		131		2,390		(272)		3,324
Charge-offs (1)	—		(6)		(3)		—		(1)		(10)
Recoveries	2		3		4		8		40		57
Balance at end of period	$	22,451	$	4,116	$	5,827	$	26,928	$	873	$	60,195

(1) Gross charge-offs for the three months ended March 31, 2024 of $441,000 included one commercial real estate loan of $46,000, which was originated in 2021. The remainder of the charge-offs were related to loans that were originated prior to 2019. Gross charge-offs for the three months ended March 31, 2023 of $10,000 related to loans that were originated prior to 2018.

Schedule of Recorded Investment in Non-Accrual Loans, by Loan Portfolio Segment

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

	March 31,		December 31,
	2024		2023
Commercial real estate – investor (1)	$	21,507	$	20,820
Commercial real estate – owner occupied	3,355		351
Commercial and industrial	567		304
Residential real estate	7,181		5,542
Other consumer	2,401		2,531
	$	35,011	$	29,548

(1) At March 31, 2024 and December 31, 2023, non-performing loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

Schedule of Aging of Recorded Investment in Past Due Loans by Loan Portfolio Segment

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

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
March 31, 2024
Commercial real estate – investor (1)	$	4,746	$	—	$	16,004	$	20,750	$	5,302,005	$	5,322,755
Commercial real estate – owner occupied	531		368		318		1,217		913,365		914,582
Commercial and industrial	3		—		567		570		676,606		677,176
Residential real estate	10,793		—		3,742		14,535		2,950,741		2,965,276
Other consumer	795		298		1,591		2,684		243,175		245,859
	$	16,868	$	666	$	22,222	$	39,756	$	10,085,892	$	10,125,648
December 31, 2023
Commercial real estate – investor (1)	$	978	$	684	$	15,201	$	16,863	$	5,337,111	$	5,353,974
Commercial real estate – owner occupied	335		352		293		980		942,911		943,891
Commercial and industrial	163		—		145		308		666,224		666,532
Residential real estate	14,858		402		3,411		18,671		2,960,863		2,979,534
Other consumer	872		558		1,836		3,266		247,398		250,664
	$	17,206	$	1,996	$	20,886	$	40,088	$	10,154,507	$	10,194,595

(1) At March 31, 2024 and December 31, 2023, 90 days or greater past due loans included the remaining exposure of $8.8 million on a commercial real estate relationship that was partially charged-off during the year ended December 31, 2023.

Schedule of Modified and Troubled Debt Restructuring Loans

The following table presents loans modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023 (in thousands):

	Term Extension		Combination of Term Extension and Interest Rate Reduction		Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended March 31, 2024
Commercial real estate – owner occupied	$	—	$	—	$	2,994	$	2,994	0.33	%
Residential real estate	129		—		—		129		—
Other consumer	—		148		—		148		0.06
	$	129	$	148	$	2,994	$	3,271	—	%
For the three months ended March 31, 2023
Residential real estate	$	435	$	—	$	—	$	435	0.02	%
Other consumer	40		—		—		40		0.02
	$	475	$	—	$	—	$	475	—	%

The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended March 31, 2024 and since adoption of the standard for March 31, 2023 (in thousands):

	Current		60 - 89 Days past due		90 Days or Greater past due			Total
March 31, 2024
Commercial real estate – investor	$	7,758	$	—	$	—		$	7,758
Commercial real estate – owner occupied	2,994		—		—			2,994
Residential real estate	258		—		153		(1)	411
Other consumer	419		—		—			419
	$	11,429	$	—	$	153		$	11,582
March 31, 2023
Residential real estate	$	297	$	138	$	—		$	435
Other consumer	40		—		—			40
	$	337	$	138	$	—		$	475

(1) Represents one residential loan that defaulted during the period and had been modified within the previous 12 months. There were no such loans that defaulted during the three months ended March 31, 2023.

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Deposits (Tables)

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Other Disclosure [Abstract]

Schedule of Major Types of Deposits

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

Type of Account	March 31,		December 31,
	2024		2023
Non-interest-bearing	$	1,639,828	$	1,657,119
Interest-bearing checking	3,865,699		3,911,766
Money market deposit	1,150,979		1,021,805
Savings	1,260,309		1,398,837
Time deposits	2,320,036		2,445,422
Total deposits	$	10,236,851	$	10,434,949

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Borrowed Funds (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Borrowed Funds

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

	March 31,		December 31,
	2024		2023
FHLB advances	$	658,436	$	848,636
Securities sold under agreements to repurchase with customers	66,798		73,148
Other borrowings	425,722		196,456
Total borrowed funds	$	1,150,956	$	1,118,240

Schedule of Pledged Assets

The following table presents the assets pledged to secure borrowings, borrowing capacity, repurchase agreements, letters of credit, and for other purposes required by law at carrying value (in thousands):

	Loans		Debt securities		Total
March 31, 2024
FHLB and FRB	$	7,336,405	$	1,244,634	$	8,581,039
Repurchase agreements	—		101,526		101,526
Total pledged assets	$	7,336,405	$	1,346,160	$	8,682,565
December 31, 2023
FHLB and FRB	$	7,255,671	$	1,051,558	$	8,307,229
Repurchase agreements	—		103,416		103,416
Total pledged assets	$	7,255,671	$	1,154,974	$	8,410,645

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Financial Liabilities Measured at Fair Value

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

			Fair Value Measurements at Reporting Date Using:
	Total Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Items measured on a recurring basis:
Debt securities available-for-sale	$	744,944	$	46,989	$	697,955	$	—
Equity investments	54,788		—		54,788		—
Interest rate derivative asset	104,149		—		104,149		—
Interest rate derivative liability	(105,118)		—		(105,118)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	48,413		—		—		44,738
Loans measured for impairment based on the fair value of the underlying collateral (3)	22,206		—		—		22,206
December 31, 2023
Items measured on a recurring basis:
Debt securities available-for-sale	$	753,892	$	43,036	$	710,856	$	—
Equity investments	53,166		—		53,166		—
Interest rate derivative asset	87,776		—		87,776		—
Interest rate derivative liability	(87,848)		—		(87,848)		—
Items measured on a non-recurring basis:
Equity investments (1) (2)	46,997		—		—		43,576
Loans measured for impairment based on the fair value of the underlying collateral (3)	18,509		—		—		18,509

(1)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $44.7 million and $43.6 million, respectively, of equity investments measured under the measurement alternative. This included no unrealized gains or losses for the three months ended March 31, 2024 and the year ended December 31, 2023.

(2)    As of March 31, 2024 and December 31, 2023, equity investments of $48.4 million and $47.0 million, respectively, included $3.7 million and $3.4 million, respectively, of certain equity investment funds measured at NAV per share (or its equivalent) as a practical expedient to fair value and these equity investments have not been classified in the fair value hierarchy levels.

(3) Primarily consists of commercial loans, which are collateral dependent. The range may vary but is generally 0% to 8% on the discount for costs to sell and 0% to 10% on appraisal adjustments.

Schedule of Book Value and Estimated Fair Value of Significant Financial Instruments Not Recorded at Fair Value

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

			Fair Value Measurements at Reporting Date Using:
	Book Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
March 31, 2024
Financial Assets:
Cash and due from banks	$	130,422	$	130,422	$	—	$	—
Debt securities held-to-maturity	1,128,666		—		1,029,965		—
Restricted equity investments	85,689		—		—		85,689
Loans receivable, net and loans held-for-sale	10,072,911		—		—		9,486,375
Financial Liabilities:
Deposits other than time deposits (1)	7,916,815		—		7,916,815		—
Time deposits	2,320,036		—		2,313,553		—
FHLB advances and other borrowings	1,084,158		—		1,068,119		—
Securities sold under agreements to repurchase with customers	66,798		66,798		—		—
December 31, 2023
Financial Assets:
Cash and due from banks	$	153,718	$	153,718	$	—	$	—
Debt securities held-to-maturity	1,159,735		—		1,068,438		—
Restricted equity investments	93,766		—		—		93,766
Loans receivable, net and loans held-for-sale	10,141,887		—		—		9,606,498
Financial Liabilities:
Deposits other than time deposits (1)	7,989,527		—		7,989,527		—
Time deposits	2,445,422		—		2,421,058		—
FHLB advances and other borrowings	1,045,092		—		1,008,351		—
Securities sold under agreements to repurchase with customers	73,148		73,148		—		—

(1)    The estimated fair value of non-maturity deposits does not consider any inherent value and represents the amount payable on demand. However, non-maturity deposits do contain significant inherent value to the Company, particularly when overnight funding costs are greater than the deposit costs.

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Accumulated Other Comprehensive Income/Loss Attributable to Cash Flow Hedge Derivative

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

	Three Months Ended March 31,
	2024		2023
AOCL balance at beginning of period, net of tax	$	(36)	$	(25)
Unrealized (losses) gains recognized in OCI	(949)		412
Losses reclassified from AOCI into interest income	259		101
(AOCL) AOCI balance at end of period, net of tax	$	(726)	$	488

Schedule of Notional Amount and Fair Value of Derivatives Designated and Not Designated as Hedging Instruments

The table below presents the notional amount and fair value of derivatives designated and not designated as hedging instruments, as well as their location on the Consolidated Statements of Financial Condition (in thousands):

	Notional		Fair Value
			Other assets		Other liabilities
As of March 31, 2024
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,439,968	$	104,149	$	104,161
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		957
Total Derivatives	$	1,539,968	$	104,149	$	105,118
As of December 31, 2023
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,418,276	$	87,776	$	87,801
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		47
Total Derivatives	$	1,518,276	$	87,776	$	87,848

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Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Right-of-Use Assets and Lease Liabilities

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

		March 31,		December 31,
		2024		2023
Lease ROU Assets	Classification
Operating lease ROU assets	Other assets	$	17,963	$	18,979
Finance lease ROU asset	Premises and equipment, net	1,246		1,304
Total lease ROU assets		$	19,209	$	20,283
Lease Liabilities
Operating lease liabilities (1)	Other liabilities	$	19,060	$	20,018
Finance lease liability	Other borrowings	1,620		1,685
Total lease liabilities		$	20,680	$	21,703

(1) Operating lease liabilities excludes liabilities for future rent and estimated lease termination payments related to closed branches of $5.7 million and $5.9 million at March 31, 2024 and December 31, 2023, respectively.

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

	March 31,		December 31,
	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	6.39 years		6.52 years
Finance lease	5.35 years		5.60 years
Weighted-Average Discount Rate
Operating leases	3.03	%	3.02	%
Finance lease	5.63		5.63

Schedule of Lease Expenses and Other Lease Information

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

	Three Months Ended March 31,
	2024		2023
Lease Expense
Operating lease expense	$	1,159	$	1,145
Finance lease expense:
Amortization of ROU assets	58		58
Interest on lease liabilities (1)	23		26
Total	$	1,240	$	1,229
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,101	$	1,139
Operating cash flows from finance leases	23		26
Financing cash flows from finance leases	65		61

(1)Included in borrowed funds interest expense on the Consolidated Statements of Income. All other costs are included in occupancy expense on the Consolidated Statements of Income.

Schedule of Future Minimum Payments for Finance Leases

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):

	Finance Lease		Operating Leases
For the Year Ending December 31,
2024	$	262	$	3,274
2025	350		4,401
2026	350		3,833
2027	350		2,678
2028	350		1,524
Thereafter	209		5,545
Total	1,871		21,255
Less: Imputed interest	(251)		(2,195)
Total lease liabilities	$	1,620	$	19,060

Schedule of Future Minimum Payments for Operating Leases

Future minimum payments for the finance lease and operating leases with initial or remaining terms were as follows (in thousands):

	Finance Lease		Operating Leases
For the Year Ending December 31,
2024	$	262	$	3,274
2025	350		4,401
2026	350		3,833
2027	350		2,678
2028	350		1,524
Thereafter	209		5,545
Total	1,871		21,255
Less: Imputed interest	(251)		(2,195)
Total lease liabilities	$	1,620	$	19,060

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Variable Interest Entity (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Financial Information of Consolidated Variable Interest Entities

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

	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	23,365	$	22,151
Other assets	551		606
Total assets	23,916		22,757
Other liabilities	22,104		20,803
Net assets	$	1,812	$	1,954

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Earnings per Share - Schedule of Reconciliation of Shares Outstanding for Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Weighted average shares outstanding (in shares)	59,207	59,291
Less: Unallocated ESOP shares (in shares)	(189)	(302)
Unallocated incentive award shares (in shares)	(229)	(215)
Average basic shares outstanding (in shares)	58,789	58,774
Add: Effect of dilutive securities:
Incentive awards (in shares)	2	144
Average diluted shares outstanding (in shares)	58,791	58,918

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Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Antidilutive stock options excluded from earnings per share calculations (in shares)	1,801	852

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Securities - Schedule of Debt Securities, Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	$ 768,392	$ 780,079
Available-for-sale, gross unrealized gains	1,590	194
Available-for-sale, gross unrealized losses	(25,038)	(26,381)
Available-for-sale, fair value	744,944	753,892
Allowance for Securities Credit Losses	0	0
Held-to-maturity, amortized cost	1,129,724	1,160,868
Held-to-maturity, gross unrealized gains	560	1,553
Held-to-maturity, gross unrealized losses	(100,319)	(93,983)
Debt securities held-to-maturity	1,029,965	1,068,438
Allowance for Securities Credit Losses	(1,058)	(1,133)	$ (1,043)	$ (1,128)
Total, amortized cost	1,898,116	1,940,947
Total, gross unrealized gains	2,150	1,747
Total, gross unrealized losses	(125,357)	(120,364)
Total, estimated fair value	1,774,909	1,822,330
U.S. government and agency obligations
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	65,818	66,490
Available-for-sale, gross unrealized gains	0	0
Available-for-sale, gross unrealized losses	(6,166)	(5,796)
Available-for-sale, fair value	59,652	60,694
Allowance for Securities Credit Losses	0	0
Corporate debt securities
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	11,831	10,096
Available-for-sale, gross unrealized gains	17	11
Available-for-sale, gross unrealized losses	(1,178)	(981)
Available-for-sale, fair value	10,670	9,126
Allowance for Securities Credit Losses	0	0
Held-to-maturity, amortized cost	66,583	69,809
Held-to-maturity, gross unrealized gains	192	391
Held-to-maturity, gross unrealized losses	(3,543)	(3,941)
Debt securities held-to-maturity	63,232	66,259
Allowance for Securities Credit Losses	(916)	(987)
Asset-backed securities
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	289,632	295,796
Available-for-sale, gross unrealized gains	113	0
Available-for-sale, gross unrealized losses	(1,619)	(4,252)
Available-for-sale, fair value	288,126	291,544
Allowance for Securities Credit Losses	0	0
Agency residential
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	291,759	298,107
Available-for-sale, gross unrealized gains	1,460	183
Available-for-sale, gross unrealized losses	(12)	(97)
Available-for-sale, fair value	293,207	298,193
Allowance for Securities Credit Losses	0	0
Held-to-maturity, amortized cost	747,094	765,632
Held-to-maturity, gross unrealized gains	178	901
Held-to-maturity, gross unrealized losses	(75,407)	(70,040)
Debt securities held-to-maturity	671,865	696,493
Allowance for Securities Credit Losses	0	0
Agency commercial
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	109,352	109,590
Available-for-sale, gross unrealized gains	0	0
Available-for-sale, gross unrealized losses	(16,063)	(15,255)
Available-for-sale, fair value	93,289	94,335
Allowance for Securities Credit Losses	0	0
Held-to-maturity, amortized cost	82,208	82,734
Held-to-maturity, gross unrealized gains	2	10
Held-to-maturity, gross unrealized losses	(4,312)	(3,678)
Debt securities held-to-maturity	77,898	79,066
Allowance for Securities Credit Losses	0	0
State, municipal, and sovereign debt obligations
Securities Financing Transaction [Line Items]
Held-to-maturity, amortized cost	213,231	222,009
Held-to-maturity, gross unrealized gains	188	251
Held-to-maturity, gross unrealized losses	(15,535)	(14,550)
Debt securities held-to-maturity	197,884	207,710
Allowance for Securities Credit Losses	(36)	(39)
Non-agency commercial
Securities Financing Transaction [Line Items]
Held-to-maturity, amortized cost	20,608	20,684
Held-to-maturity, gross unrealized gains	0	0
Held-to-maturity, gross unrealized losses	(1,522)	(1,774)
Debt securities held-to-maturity	19,086	18,910
Allowance for Securities Credit Losses	(106)	(107)
Total mortgage-backed securities
Securities Financing Transaction [Line Items]
Available-for-sale, amortized cost	401,111	407,697
Available-for-sale, gross unrealized gains	1,460	183
Available-for-sale, gross unrealized losses	(16,075)	(15,352)
Available-for-sale, fair value	386,496	392,528
Allowance for Securities Credit Losses	0	0
Held-to-maturity, amortized cost	849,910	869,050
Held-to-maturity, gross unrealized gains	180	911
Held-to-maturity, gross unrealized losses	(81,241)	(75,492)
Debt securities held-to-maturity	768,849	794,469
Allowance for Securities Credit Losses	$ (106)	$ (107)

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Securities - Schedule of Allowance for Credit Losses for Debt Securities Held-to-Maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allowance for securities credit losses
Beginning balance	$ (1,133)	$ (1,128)
Benefit for credit losses	75	85
Total ending allowance balance	$ (1,058)	$ (1,043)

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Securities - Schedule of Amortized Cost of Debt Securities Held-to-Maturity, Aggregated by Credit Quality Indicator (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	$ 300,422
Investment Grade
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	286,886
Non-Investment Grade/Non-rated
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	13,536
State and municipal debt obligations
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	213,231
State and municipal debt obligations | Investment Grade
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	213,231
State and municipal debt obligations | Non-Investment Grade/Non-rated
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	0
Corporate debt securities
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	66,583
Corporate debt securities | Investment Grade
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	53,047
Corporate debt securities | Non-Investment Grade/Non-rated
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	13,536
Non-agency commercial MBS
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	20,608
Non-agency commercial MBS | Investment Grade
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	20,608
Non-agency commercial MBS | Non-Investment Grade/Non-rated
Securities Financing Transaction [Line Items]
Amortized cost of debt securities held-to-maturity	$ 0

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Securities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Realized losses	$ 110	$ 697
Equity investments	103,201		$ 100,163
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	77,400
Fair value	72,900
State, municipal, and sovereign debt obligations
Debt Securities, Available-for-sale [Line Items]
Amortized cost	60,800
Fair value	59,000
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	289,600
Fair value	$ 288,100

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Securities - Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Amortized Cost
Less than one year	$ 32,582
Due after one year through five years	194,788
Due after five years through ten years	194,267
Due after ten years	225,458
Total amortized cost	647,095
Estimated Fair Value
Less than one year	32,182
Due after one year through five years	180,665
Due after five years through ten years	189,112
Due after ten years	217,605
Total estimated fair value	$ 619,564

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Securities - Schedule of Estimated Fair Value and Unrealized Losses for Debt Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	$ 40,027	$ 171,376
Available-for-sale, Less than 12 months, Unrealized Losses	(60)	(264)
Available-for-sale, 12 months or Longer, Estimated Fair Value	371,918	451,856
Available-for-sale, 12 months or longer, Unrealized Losses	(24,978)	(26,117)
Available-for-sale, Total, Estimated Fair Value	411,945	623,232
Available-for-sale, Total, Unrealized Losses	(25,038)	(26,381)
Held-to-maturity, Less than 12 months, Estimated Fair Value	129,702	124,433
Held-to-maturity, Less than 12 months, Unrealized Losses	(2,740)	(1,559)
Held-to-maturity, 12 months or longer, Estimated Fair Value	849,435	849,609
Held-to-maturity, 12 months or longer, Unrealized Losses	(97,579)	(92,424)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	979,137	974,042
Held-to-maturity, total, unrealized losses	(100,319)	(93,983)
Total securities, Less than 12 months, Estimated Fair Value	169,729	295,809
Total securities, Less than 12 months, Unrealized Losses	(2,800)	(1,823)
Total securities, 12 months or longer, Estimated Fair Value	1,221,353	1,301,465
Total securities, 12 months or longer, Unrealized Losses	(122,557)	(118,541)
Total securities, Estimated Fair Value	1,391,082	1,597,274
Total securities, Unrealized Losses	(125,357)	(120,364)
Mortgage-backed securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	23,921	169,000
Available-for-sale, Less than 12 months, Unrealized Losses	(12)	(97)
Available-for-sale, 12 months or Longer, Estimated Fair Value	93,289	94,335
Available-for-sale, 12 months or longer, Unrealized Losses	(16,063)	(15,255)
Available-for-sale, Total, Estimated Fair Value	117,210	263,335
Available-for-sale, Total, Unrealized Losses	(16,075)	(15,352)
Held-to-maturity, Less than 12 months, Estimated Fair Value	124,031	114,678
Held-to-maturity, Less than 12 months, Unrealized Losses	(2,142)	(1,063)
Held-to-maturity, 12 months or longer, Estimated Fair Value	606,389	599,712
Held-to-maturity, 12 months or longer, Unrealized Losses	(79,099)	(74,429)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	730,420	714,390
Held-to-maturity, total, unrealized losses	(81,241)	(75,492)
U.S. government and agency obligations | Investment securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	5,383	833
Available-for-sale, Less than 12 months, Unrealized Losses	(14)	(2)
Available-for-sale, 12 months or Longer, Estimated Fair Value	54,269	59,861
Available-for-sale, 12 months or longer, Unrealized Losses	(6,152)	(5,794)
Available-for-sale, Total, Estimated Fair Value	59,652	60,694
Available-for-sale, Total, Unrealized Losses	(6,166)	(5,796)
Corporate debt securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, total, unrealized losses	(3,543)	(3,941)
Corporate debt securities | Investment securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	1,432	1,543
Available-for-sale, Less than 12 months, Unrealized Losses	(25)	(165)
Available-for-sale, 12 months or Longer, Estimated Fair Value	7,496	6,116
Available-for-sale, 12 months or longer, Unrealized Losses	(1,153)	(816)
Available-for-sale, Total, Estimated Fair Value	8,928	7,659
Available-for-sale, Total, Unrealized Losses	(1,178)	(981)
Held-to-maturity, Less than 12 months, Estimated Fair Value	2,996	3,084
Held-to-maturity, Less than 12 months, Unrealized Losses	(568)	(473)
Held-to-maturity, 12 months or longer, Estimated Fair Value	57,739	58,386
Held-to-maturity, 12 months or longer, Unrealized Losses	(2,975)	(3,468)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	60,735	61,470
Held-to-maturity, total, unrealized losses	(3,543)	(3,941)
Asset-backed securities | Investment securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	9,291	0
Available-for-sale, Less than 12 months, Unrealized Losses	(9)	0
Available-for-sale, 12 months or Longer, Estimated Fair Value	216,864	291,544
Available-for-sale, 12 months or longer, Unrealized Losses	(1,610)	(4,252)
Available-for-sale, Total, Estimated Fair Value	226,155	291,544
Available-for-sale, Total, Unrealized Losses	(1,619)	(4,252)
Agency residential
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, total, unrealized losses	(75,407)	(70,040)
Agency residential | Mortgage-backed securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	23,921	169,000
Available-for-sale, Less than 12 months, Unrealized Losses	(12)	(97)
Available-for-sale, 12 months or Longer, Estimated Fair Value	0	0
Available-for-sale, 12 months or longer, Unrealized Losses	0	0
Available-for-sale, Total, Estimated Fair Value	23,921	169,000
Available-for-sale, Total, Unrealized Losses	(12)	(97)
Held-to-maturity, Less than 12 months, Estimated Fair Value	104,295	95,776
Held-to-maturity, Less than 12 months, Unrealized Losses	(1,702)	(693)
Held-to-maturity, 12 months or longer, Estimated Fair Value	530,150	525,751
Held-to-maturity, 12 months or longer, Unrealized Losses	(73,705)	(69,347)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	634,445	621,527
Held-to-maturity, total, unrealized losses	(75,407)	(70,040)
Agency commercial
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, total, unrealized losses	(4,312)	(3,678)
Agency commercial | Mortgage-backed securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Available-for-sale, Less than 12 months, Estimated Fair Value	0	0
Available-for-sale, Less than 12 months, Unrealized Losses	0	0
Available-for-sale, 12 months or Longer, Estimated Fair Value	93,289	94,335
Available-for-sale, 12 months or longer, Unrealized Losses	(16,063)	(15,255)
Available-for-sale, Total, Estimated Fair Value	93,289	94,335
Available-for-sale, Total, Unrealized Losses	(16,063)	(15,255)
Held-to-maturity, Less than 12 months, Estimated Fair Value	19,736	18,902
Held-to-maturity, Less than 12 months, Unrealized Losses	(440)	(370)
Held-to-maturity, 12 months or longer, Estimated Fair Value	57,153	55,051
Held-to-maturity, 12 months or longer, Unrealized Losses	(3,872)	(3,308)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	76,889	73,953
Held-to-maturity, total, unrealized losses	(4,312)	(3,678)
Non-agency commercial
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, total, unrealized losses	(1,522)	(1,774)
Non-agency commercial | Mortgage-backed securities:
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value	0	0
Held-to-maturity, Less than 12 months, Unrealized Losses	0	0
Held-to-maturity, 12 months or longer, Estimated Fair Value	19,086	18,910
Held-to-maturity, 12 months or longer, Unrealized Losses	(1,522)	(1,774)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	19,086	18,910
Held-to-maturity, total, unrealized losses	(1,522)	(1,774)
State, municipal, and sovereign debt obligations
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, total, unrealized losses	(15,535)	(14,550)
State, municipal, and sovereign debt obligations | Investment securities
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Held-to-maturity, Less than 12 months, Estimated Fair Value	2,675	6,671
Held-to-maturity, Less than 12 months, Unrealized Losses	(30)	(23)
Held-to-maturity, 12 months or longer, Estimated Fair Value	185,307	191,511
Held-to-maturity, 12 months or longer, Unrealized Losses	(15,505)	(14,527)
Held To Maturity Securities Continuous Unrealized Loss Position Fair Value1	187,982	198,182
Held-to-maturity, total, unrealized losses	$ (15,535)	$ (14,550)

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Securities - Schedule of Realized and Unrealized Gains or Losses on Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Net gain (loss) on equity investments	$ 1,923	$ (6,801)
Less: Net losses recognized on equity investments sold	0	(4,608)
Unrealized gains (losses) recognized on equity investments still held	$ 1,923	$ (2,193)

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Loans Receivable, Net - Schedule of Loans Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	$ 10,125,648	$ 10,194,595
Deferred origination costs, net of fees	9,734	9,263
Allowance for loan credit losses	(67,173)	(67,137)	$ (60,195)	$ (56,824)
Total loans receivable, net	10,068,209	10,136,721
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	6,914,513	6,964,397
Commercial | Commercial real estate – investor
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	5,322,755	5,353,974
Commercial | Commercial real estate – owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	914,582	943,891
Commercial | Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	677,176	666,532
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	3,211,135	3,230,198
Allowance for loan credit losses	(1,187)	(988)	$ (873)	$ (1,106)
Consumer | Residential real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	2,965,276	2,979,534
Consumer | Home equity loans and lines and other consumer (“other consumer”)
Financing Receivable, Allowance for Credit Loss [Line Items]
Total loans receivable	$ 245,859	$ 250,664

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Loans Receivable, Net - Schedule of Total Loans by Year of Origination, Internally Assigned Credit Grades and Risk Characteristics (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	$ 122,307	$ 633,062
One year before current fiscal year	636,236	2,288,236
Two years before current fiscal year	2,276,738	2,039,019
Three years before current fiscal year	2,022,622	1,003,434
Four years before current fiscal year	987,593	855,884
Five years and prior before current fiscal year	2,977,083	2,243,184
Revolving lines of credit	1,103,069	1,131,776
Total	10,125,648	10,194,595
Commercial real estate – investor
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	48,428	137,028
One year before current fiscal year	136,697	1,165,955
Two years before current fiscal year	1,170,068	1,331,073
Three years before current fiscal year	1,330,248	534,285
Four years before current fiscal year	530,341	505,159
Five years and prior before current fiscal year	1,449,340	1,000,670
Revolving lines of credit	657,633	679,804
Total	5,322,755	5,353,974
Commercial real estate – investor | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	48,428	137,028
One year before current fiscal year	136,697	1,165,955
Two years before current fiscal year	1,170,068	1,328,012
Three years before current fiscal year	1,327,264	529,745
Four years before current fiscal year	525,806	490,438
Five years and prior before current fiscal year	1,352,769	930,337
Revolving lines of credit	644,938	679,804
Total	5,205,970	5,261,319
Commercial real estate – investor | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	2,413
Three years before current fiscal year	2,389	790
Four years before current fiscal year	0	1,446
Five years and prior before current fiscal year	42,787	22,147
Revolving lines of credit	12,695	0
Total	57,871	26,796
Commercial real estate – investor | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	648
Three years before current fiscal year	595	3,750
Four years before current fiscal year	4,535	13,275
Five years and prior before current fiscal year	53,784	48,186
Revolving lines of credit	0	0
Total	58,914	65,859
Commercial real estate – owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	12,333	66,642
One year before current fiscal year	65,173	120,280
Two years before current fiscal year	116,684	103,104
Three years before current fiscal year	98,566	59,179
Four years before current fiscal year	57,582	105,994
Five years and prior before current fiscal year	540,492	466,927
Revolving lines of credit	23,752	21,765
Total	914,582	943,891
Commercial real estate – owner occupied | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	12,333	66,642
One year before current fiscal year	65,173	120,280
Two years before current fiscal year	116,684	103,104
Three years before current fiscal year	98,566	59,179
Four years before current fiscal year	57,582	102,703
Five years and prior before current fiscal year	513,115	441,713
Revolving lines of credit	23,133	21,052
Total	886,586	914,673
Commercial real estate – owner occupied | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	1,272
Five years and prior before current fiscal year	8,705	8,314
Revolving lines of credit	0	0
Total	8,705	9,586
Commercial real estate – owner occupied | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	2,019
Five years and prior before current fiscal year	18,672	16,900
Revolving lines of credit	619	713
Total	19,291	19,632
Commercial and  Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	12,487	112,914
One year before current fiscal year	122,952	65,392
Two years before current fiscal year	66,453	19,590
Three years before current fiscal year	18,281	8,645
Four years before current fiscal year	7,671	7,923
Five years and prior before current fiscal year	56,987	52,651
Revolving lines of credit	392,345	399,417
Total	677,176	666,532
Commercial and  Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	12,487	112,914
One year before current fiscal year	122,952	64,770
Two years before current fiscal year	65,864	19,473
Three years before current fiscal year	18,212	8,645
Four years before current fiscal year	7,671	7,778
Five years and prior before current fiscal year	55,600	51,082
Revolving lines of credit	377,278	383,013
Total	660,064	647,675
Commercial and  Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Five years and prior before current fiscal year	170	184
Revolving lines of credit	2,239	2,859
Total	2,409	3,043
Commercial and  Industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	622
Two years before current fiscal year	589	117
Three years before current fiscal year	69	0
Four years before current fiscal year	0	145
Five years and prior before current fiscal year	1,217	1,385
Revolving lines of credit	12,828	13,545
Total	14,703	15,814
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	245,859	250,664
Consumer | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	43,812	283,619
One year before current fiscal year	280,182	916,519
Two years before current fiscal year	904,132	564,515
Three years before current fiscal year	555,438	388,650
Four years before current fiscal year	379,559	223,865
Five years and prior before current fiscal year	802,153	602,366
Revolving lines of credit	0	0
Total	2,965,276	2,979,534
Consumer | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	5,247	32,859
One year before current fiscal year	31,232	20,090
Two years before current fiscal year	19,401	20,737
Three years before current fiscal year	20,089	12,675
Four years before current fiscal year	12,440	12,943
Five years and prior before current fiscal year	128,111	120,570
Revolving lines of credit	29,339	30,790
Total	245,859	250,664
Consumer | Pass | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	43,812	283,296
One year before current fiscal year	279,313	916,153
Two years before current fiscal year	904,132	564,515
Three years before current fiscal year	555,218	388,392
Four years before current fiscal year	378,827	223,247
Five years and prior before current fiscal year	800,232	600,118
Revolving lines of credit	0	0
Total	2,961,534	2,975,721
Consumer | Pass | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	5,247	32,859
One year before current fiscal year	31,232	19,918
Two years before current fiscal year	19,401	20,737
Three years before current fiscal year	20,089	12,675
Four years before current fiscal year	12,440	12,937
Five years and prior before current fiscal year	126,222	118,486
Revolving lines of credit	29,339	30,658
Total	243,970	248,270
Consumer | Special Mention | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	131
Five years and prior before current fiscal year	0	271
Revolving lines of credit	0	0
Total	0	402
Consumer | Special Mention | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	172
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Five years and prior before current fiscal year	298	386
Revolving lines of credit	0	0
Total	298	558
Consumer | Substandard | Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	323
One year before current fiscal year	869	366
Two years before current fiscal year	0	0
Three years before current fiscal year	220	258
Four years before current fiscal year	732	487
Five years and prior before current fiscal year	1,921	1,977
Revolving lines of credit	0	0
Total	3,742	3,411
Consumer | Substandard | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	6
Five years and prior before current fiscal year	1,591	1,698
Revolving lines of credit	0	132
Total	$ 1,591	$ 1,836

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Loans Receivable, Net - Schedule of Analysis of Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allowance for credit losses on loans
Balance at beginning of period	$ 67,137	$ 56,824
(Benefit) provision for credit losses	385	3,324
Charge-offs	(441)
Recoveries	92	57
Balance at end of period	67,173	60,195
Gross charge-off originated in 2021	46
Charge-off		10
Commercial Real Estate – Investor
Allowance for credit losses on loans
Balance at beginning of period	27,899	21,070
(Benefit) provision for credit losses	(865)	1,379
Charge-offs	(46)	0
Recoveries	2	2
Balance at end of period	26,990	22,451
Commercial Real Estate – Owner Occupied
Allowance for credit losses on loans
Balance at beginning of period	4,354	4,423
(Benefit) provision for credit losses	(107)	(304)
Charge-offs	0	(6)
Recoveries	4	3
Balance at end of period	4,251	4,116
Commercial and  Industrial
Allowance for credit losses on loans
Balance at beginning of period	6,867	5,695
(Benefit) provision for credit losses	769	131
Charge-offs	0	(3)
Recoveries	5	4
Balance at end of period	7,641	5,827
Residential Real Estate
Allowance for credit losses on loans
Balance at beginning of period	27,029	24,530
(Benefit) provision for credit losses	9	2,390
Charge-offs	0	0
Recoveries	66	8
Balance at end of period	27,104	26,928
Other Consumer
Allowance for credit losses on loans
Balance at beginning of period	988	1,106
(Benefit) provision for credit losses	579	(272)
Charge-offs	(395)	(1)
Recoveries	15	40
Balance at end of period	$ 1,187	$ 873

XML

Loans Receivable, Net - Narrative (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, excluding accrued interest, modified, accumulated	$ 12,000,000	$ 8,900,000
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commitments to lend additional funds to borrowers	0	0
Commercial real estate – investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount	16,000,000	15,200,000
Commercial real estate – owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount	3,400,000	352,000
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount	567,000	304,000
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount	$ 2,300,000	$ 2,600,000

XML

Loans Receivable, Net - Schedule of Recorded Investment in Non-Accrual Loans, by Loan Portfolio Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	$ 35,011	$ 29,548
Commercial real estate – investor
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	21,507	20,820
Estimated realizable value	8,800	8,800
Commercial real estate – owner occupied
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	3,355	351
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	567	304
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	7,181	5,542
Other Consumer
Financing Receivable, Past Due [Line Items]
Loans with non-accrual of interest	$ 2,401	$ 2,531

XML

Loans Receivable, Net - Schedule of Aging of Recorded Investment in Past Due Loans by Loan Portfolio Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total loans receivable	$ 10,125,648	$ 10,194,595
Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	39,756	40,088
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	16,868	17,206
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	666	1,996
90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	22,222	20,886
Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	10,085,892	10,154,507
Commercial real estate – investor
Financing Receivable, Past Due [Line Items]
Total loans receivable	5,322,755	5,353,974
Estimated realizable value	8,800	8,800
Commercial real estate – investor | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	20,750	16,863
Commercial real estate – investor | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	4,746	978
Commercial real estate – investor | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	0	684
Commercial real estate – investor | 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	16,004	15,201
Commercial real estate – investor | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	5,302,005	5,337,111
Commercial real estate – owner occupied
Financing Receivable, Past Due [Line Items]
Total loans receivable	914,582	943,891
Commercial real estate – owner occupied | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	1,217	980
Commercial real estate – owner occupied | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	531	335
Commercial real estate – owner occupied | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	368	352
Commercial real estate – owner occupied | 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	318	293
Commercial real estate – owner occupied | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	913,365	942,911
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans receivable	677,176	666,532
Commercial and industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	570	308
Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	3	163
Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	0	0
Commercial and industrial | 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	567	145
Commercial and industrial | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	676,606	666,224
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans receivable	2,965,276	2,979,534
Residential real estate | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	14,535	18,671
Residential real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	10,793	14,858
Residential real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	0	402
Residential real estate | 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	3,742	3,411
Residential real estate | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	2,950,741	2,960,863
Other Consumer
Financing Receivable, Past Due [Line Items]
Total loans receivable	245,859	250,664
Other Consumer | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	2,684	3,266
Other Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	795	872
Other Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	298	558
Other Consumer | 90 Days or Greater Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	1,591	1,836
Other Consumer | Loans Not Past Due
Financing Receivable, Past Due [Line Items]
Total loans receivable	$ 243,175	$ 247,398

XML

Loans Receivable, Net - Schedule of Loans Modifications made to Borrowers (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 3,271	$ 475	$ 11,582
% of Total by Loan Portfolio Segment	0.00%	0.00%
Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 129	$ 475
Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	148	0
Other Than Insignificant Payment Delay
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	2,994	0
Commercial real estate – owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 2,994
% of Total by Loan Portfolio Segment	0.33%
Commercial real estate – owner occupied | Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 0
Commercial real estate – owner occupied | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	0
Commercial real estate – owner occupied | Other Than Insignificant Payment Delay
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	2,994
Residential Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 129	$ 435	411
% of Total by Loan Portfolio Segment	0.00%	0.02%
Residential Real Estate | Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 129	$ 435
Residential Real Estate | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	0	0
Residential Real Estate | Other Than Insignificant Payment Delay
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	0	0
Other Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 148	$ 40	$ 419
% of Total by Loan Portfolio Segment	0.06%	0.02%
Other Consumer | Term Extension
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 0	$ 40
Other Consumer | Combination of Term Extension and Interest Rate Reduction
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	148	0
Other Consumer | Other Than Insignificant Payment Delay
Financing Receivable, Allowance for Credit Loss [Line Items]
Modified loans	$ 0	$ 0

XML

Loans Receivable, Net - Schedule of Troubled Debt Restructuring Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans	$ 3,271	$ 475	$ 11,582
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		337	11,429
60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		138	0
90 Days or Greater Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		0	153
Commercial real estate – investor
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			7,758
Commercial real estate – investor | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			7,758
Commercial real estate – investor | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			0
Commercial real estate – investor | 90 Days or Greater Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			0
Commercial real estate – owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			2,994
Commercial real estate – owner occupied | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			2,994
Commercial real estate – owner occupied | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			0
Commercial real estate – owner occupied | 90 Days or Greater Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans			0
Residential Real Estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans	129	435	411
Residential Real Estate | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		297	258
Residential Real Estate | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		138	0
Residential Real Estate | 90 Days or Greater Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		0	153
Other Consumer
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans	$ 148	40	419
Other Consumer | Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		40	419
Other Consumer | 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		0	0
Other Consumer | 90 Days or Greater Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Modified loans		$ 0	$ 0

XML

Deposits - Schedule of Major Types of Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Banking and Thrift, Other Disclosure [Abstract]
Non-interest-bearing	$ 1,639,828	$ 1,657,119
Interest-bearing checking	3,865,699	3,911,766
Money market deposit	1,150,979	1,021,805
Savings	1,260,309	1,398,837
Time deposits	2,320,036	2,445,422
Total deposits	$ 10,236,851	$ 10,434,949

XML

Deposits - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Banking and Thrift, Other Disclosure [Abstract]
Time deposits, $250,000 and over	$ 373.9	$ 412.0
Time deposits also include brokered deposits	$ 543.4	$ 631.5

XML

Borrowed Funds - Schedule of Borrowed Funds (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
FHLB advances	$ 658,436	$ 848,636
Securities sold under agreements to repurchase with customers	66,798	73,148
Other borrowings	425,722	196,456
Total borrowed funds	$ 1,150,956	$ 1,118,240

XML

Borrowed Funds - Narrative (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
FHLB short-term advances	$ 608,600,000	$ 848,600,000
FHLB advances overnight borrowing	49,800,000	0
Other borrowings	$ 425,722,000	$ 196,456,000

XML

Borrowed Funds - Schedule of Pledged Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Loans	$ 10,068,209	$ 10,136,721
Debt securities	744,944	753,892
Assets	13,418,978	13,538,253
FHLB and FRB
Debt Instrument [Line Items]
Loans	7,336,405	7,255,671
Debt securities	1,244,634	1,051,558
Assets	8,581,039	8,307,229
Repurchase agreements
Debt Instrument [Line Items]
Loans	0	0
Debt securities	101,526	103,416
Assets	101,526	103,416
Total pledged assets
Debt Instrument [Line Items]
Loans	7,336,405	7,255,671
Debt securities	1,346,160	1,154,974
Assets	$ 8,682,565	$ 8,410,645

XML

Fair Value Measurements - Schedule of Financial Assets and Financial Liabilities Measured at Fair Value (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain (loss)	$ 1,923,000	$ (2,193,000)
Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Minimum range of unobservable inputs	0.00%		0.00%
Maximum range of unobservable inputs	8.00%		8.00%
Measurement Input, Appraisal Adjustments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Minimum range of unobservable inputs	0.00%		0.00%
Maximum range of unobservable inputs	10.00%		10.00%
Fair Value Measured at Net Asset Value Per Share
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investment funds measured at NAV	$ 3,700,000		$ 3,400,000
Items measured on a recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale	744,944,000		753,892,000
Equity investments	54,788,000		53,166,000
Interest rate derivative asset	104,149,000		87,776,000
Interest rate derivative liability	(105,118,000)		(87,848,000)
Items measured on a recurring basis | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale	46,989,000		43,036,000
Equity investments	0		0
Interest rate derivative asset	0		0
Interest rate derivative liability	0		0
Items measured on a recurring basis | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale	697,955,000		710,856,000
Equity investments	54,788,000		53,166,000
Interest rate derivative asset	104,149,000		87,776,000
Interest rate derivative liability	(105,118,000)		(87,848,000)
Items measured on a recurring basis | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt securities available-for-sale	0		0
Equity investments	0		0
Interest rate derivative asset	0		0
Interest rate derivative liability	0		0
Items measured on a non-recurring basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	48,413,000		46,997,000
Items measured on a non-recurring basis | Loans measured for impairment based on the fair value of the underlying collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured for impairment based on the fair value of the underlying collateral	22,206,000		18,509,000
Items measured on a non-recurring basis | Level 1 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	0		0
Items measured on a non-recurring basis | Level 1 Inputs | Loans measured for impairment based on the fair value of the underlying collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured for impairment based on the fair value of the underlying collateral	0		0
Items measured on a non-recurring basis | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	0		0
Items measured on a non-recurring basis | Level 2 Inputs | Loans measured for impairment based on the fair value of the underlying collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured for impairment based on the fair value of the underlying collateral	0		0
Items measured on a non-recurring basis | Level 3 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	44,738,000		43,576,000
Items measured on a non-recurring basis | Level 3 Inputs | Loans measured for impairment based on the fair value of the underlying collateral
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured for impairment based on the fair value of the underlying collateral	22,206,000		18,509,000
Items measured on a non-recurring basis | Fair Value Measured at Net Asset Value Per Share
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity investments	44,700,000		43,600,000
Unrealized gain (loss)	$ 0		$ 0

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Fair Value Measurements - Schedule of Book Value and Estimated Fair Value of Significant Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial Assets:
Debt securities held-to-maturity	$ 1,029,965	$ 1,068,438
Restricted equity investments	85,689	93,766
Financial Liabilities:
Time deposits	2,320,036	2,445,422
Securities sold under agreements to repurchase with customers	66,798	73,148
Level 1 Inputs
Financial Assets:
Cash and due from banks	130,422	153,718
Debt securities held-to-maturity	0	0
Restricted equity investments	0	0
Loans receivable, net and loans held-for-sale	0	0
Financial Liabilities:
Deposits other than time deposits	0	0
Time deposits	0	0
FHLB advances and other borrowings	0	0
Securities sold under agreements to repurchase with customers	66,798	73,148
Level 2 Inputs
Financial Assets:
Cash and due from banks	0	0
Debt securities held-to-maturity	1,029,965	1,068,438
Restricted equity investments	0	0
Loans receivable, net and loans held-for-sale	0	0
Financial Liabilities:
Deposits other than time deposits	7,916,815	7,989,527
Time deposits	2,313,553	2,421,058
FHLB advances and other borrowings	1,068,119	1,008,351
Securities sold under agreements to repurchase with customers	0	0
Level 3 Inputs
Financial Assets:
Cash and due from banks	0	0
Debt securities held-to-maturity	0	0
Restricted equity investments	85,689	93,766
Loans receivable, net and loans held-for-sale	9,486,375	9,606,498
Financial Liabilities:
Deposits other than time deposits	0	0
Time deposits	0	0
FHLB advances and other borrowings	0	0
Securities sold under agreements to repurchase with customers	0	0
Book Value
Financial Assets:
Cash and due from banks	130,422	153,718
Debt securities held-to-maturity	1,128,666	1,159,735
Restricted equity investments	85,689	93,766
Loans receivable, net and loans held-for-sale	10,072,911	10,141,887
Financial Liabilities:
Deposits other than time deposits	7,916,815	7,989,527
Time deposits	2,320,036	2,445,422
FHLB advances and other borrowings	1,084,158	1,045,092
Securities sold under agreements to repurchase with customers	$ 66,798	$ 73,148

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Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2023
Derivative [Line Items]
Reduction to interest income	$ 932
Collateral already posted, fair value	0			$ 0
Collateral received from third parties	106,200			88,300
Credit risk derivative liability, fair value	105,118			$ 87,848
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Derivative [Line Items]
Floating rate percentage			4.00%
Interest rate swap contract
Derivative [Line Items]
Income (expense) in fair value adjustments	$ 13	$ (22)
Derivative term			3 years

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Derivatives and Hedging Activities - Schedule of Accumulated Other Comprehensive Income/Loss Attributable to Cash Flow Hedge Derivative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 1,661,945	$ 1,585,464
Ending balance	1,665,837	1,610,371
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(36)	(25)
Unrealized (losses) gains recognized in OCI	(949)	412
Losses reclassified from AOCI into interest income	259	101
Ending balance	$ (726)	$ 488

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Derivatives and Hedging Activities - Schedule of Notional Amount and Fair Value of Derivatives Designated and Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities
Derivative, notional amount	$ 1,539,968	$ 1,518,276
Credit risk derivative asset, fair value	104,149	87,776
Credit risk derivative liability, fair value	105,118	87,848
Not Designated as Hedging Instrument | Interest rate swaps and cap contracts
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,439,968	1,418,276
Credit risk derivative asset, fair value	104,149	87,776
Credit risk derivative liability, fair value	104,161	87,801
Designated as Hedging Instrument | Interest rate swap contract
Derivatives, Fair Value [Line Items]
Derivative, notional amount	100,000	100,000
Credit risk derivative asset, fair value	0	0
Credit risk derivative liability, fair value	$ 957	$ 47

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Leases - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 lease renewalTerm
Leases [Abstract]
Number of finance leases | lease	1
Number of option to renew | renewalTerm	1

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Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Operating lease ROU assets	$ 17,963	$ 18,979
Finance lease ROU asset	1,246	1,304
Total lease ROU assets	$ 19,209	$ 20,283
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Premises and equipment, net	Premises and equipment, net
Lease Liabilities
Operating lease liabilities	$ 19,060	$ 20,018
Finance lease liability	1,620	1,685
Total lease liabilities	$ 20,680	$ 21,703
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Other borrowings	Other borrowings
Future rent and estimated lease termination liability excluded from operating lease liability	$ 5,700	$ 5,900

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Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Operating leases, weighted-average remaining lease term (years)	6 years 4 months 20 days	6 years 6 months 7 days
Finance lease, weighted-average remaining lease term (years)	5 years 4 months 6 days	5 years 7 months 6 days
Operating leases, weighted-average discount rate (percent)	3.03%	3.02%
Finance lease, weighted-average discount rate (percent)	5.63%	5.63%

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Leases - Schedule of Lease Expenses and Other Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Lease Expense
Operating lease expense	$ 1,159	$ 1,145
Finance lease expense:
Amortization of ROU assets	58	58
Interest on lease liabilities	23	26
Total	1,240	1,229
Operating cash flows from operating leases	1,101	1,139
Operating cash flows from finance leases	23	26
Financing cash flows from finance leases	$ 65	$ 61

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Leases - Schedule of Future Minimum Payments for Financing and Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finance Lease
2024	$ 262
2025	350
2026	350
2027	350
2028	350
Thereafter	209
Total	1,871
Less: Imputed interest	(251)
Total lease liabilities	1,620	$ 1,685
Operating Leases
2024	3,274
2025	4,401
2026	3,833
2027	2,678
2028	1,524
Thereafter	5,545
Total	21,255
Less: Imputed interest	(2,195)
Total lease liabilities	$ 19,060	$ 20,018

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Variable Interest Entity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Variable Interest Entity [Line Items]
Other assets	$ 199,974	$ 179,661
Total assets	13,418,978	13,538,253
Other liabilities	337,147	300,712
VIE
Variable Interest Entity [Line Items]
Cash and cash equivalents	23,365	22,151
Other assets	551	606
Total assets	23,916	22,757
Other liabilities	22,104	20,803
Net assets	$ 1,812	$ 1,954