OceanFirst Financial Corp. (OCFC): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into OceanFirst Financial Corp.'s playbook as of late 2025, trying to map out their next move, and the four P's tell a sharp story of calculated change. Forget the old model; they are clearly doubling down on Commercial and Industrial loans while streamlining with residential outsourcing, all while managing a Net Interest Margin that hit 2.91% in Q2. We see this balance reflected everywhere, from their blended branch/digital 'Place' strategy to using a 4.00% APY CD as a key 'Promotion' tool to fund it all. Read on for the precise breakdown of how these levers are set to perform.

OceanFirst Financial Corp. (OCFC) - Marketing Mix: Product

The product strategy for OceanFirst Financial Corp. (OCFC) centers on a deliberate shift toward higher-value commercial relationships, supported by targeted deposit-gathering initiatives and operational streamlining as of late 2025.

Commercial and Industrial (C&I) loans represent the core engine for portfolio expansion. The strategic pivot toward commercial lending is evident, with this segment representing 68% of the total loan portfolio as of the first quarter of 2025, up from 48% in 2016. This focus drove significant recent growth; for the third quarter of 2025, C&I loans grew by $219.1 million. Total loan originations for the third quarter of 2025 reached $1 billion, with commercial originations specifically totaling $739.2 million. Overall, total loans increased by $372.9 million, representing a 14% annualized growth rate in the third quarter of 2025.

OceanFirst Financial Corp. launched Premier Banking in 2025 to target high-value relationships, primarily in the New York City, Long Island, and Westchester markets. The initiative involved onboarding nine teams totaling 36 full-time employees by the first quarter of 2025. These teams are on track to meet the 2025 deposit target of $500 million. By the third quarter of 2025, the Premier Banking teams had contributed $242 million in deposits, with a weighted average cost of 2.64%. The company has multi-year aspirational goals of growing these relationships to between $2 to $3 billion in deposits by the end of 2027.

The bank's core deposit services remain foundational, though the mix is actively managed. Total deposits stood at $10.2 billion at the end of the first quarter of 2025 and grew to $10.436 billion by the third quarter of 2025. The product offering includes checking, savings, and Money Market accounts. As of December 31, 2024, the deposit composition showed Time Deposits at $2.08 billion (representing 20.7% of total deposits), while Money Market accounts had increased by $279.4 million from the prior quarter.

A significant product restructuring involved outsourcing residential loan originations. OceanFirst Financial Corp. recognized $4.1 million in restructuring charges during the third quarter of 2025 related to this decision. The company expects to incur approximately $8 million of additional charges in the subsequent quarter. This strategic pivot is anticipated to result in an annual expense saving of $14 million beginning in 2026. This operational change is accompanied by a workforce reduction, with 114 employees slated for layoff by December 18, 2025.

OceanFirst Financial Corp. also offers specialized services to complement its lending and deposit base. The product suite includes:

• Treasury management services
• Trust services
• Asset management services

The following table summarizes key balance sheet and growth metrics relevant to the product strategy as of late 2025 data points:

You should review the expected operating expense run-rate for Q4 2025, as the restructuring charges are still being recognized, which will impact near-term profitability before the $14 million benefit materializes in 2026. Finance: draft 13-week cash view by Friday.

OceanFirst Financial Corp. (OCFC) - Marketing Mix: Place

OceanFirst Financial Corp. (OCFC) deploys a distribution strategy balancing physical presence with digital accessibility across its defined market.

Regional Footprint and Physical Presence

OceanFirst Bank N.A. maintains a regional footprint spanning from New Jersey to Virginia, serving major metropolitan areas including New York City, Philadelphia, Baltimore, Boston, and Washington D.C.. The bank headquarters is located at 975 Hooper Avenue, Toms River, New Jersey, 08753-8320.

The distribution network continues to evolve, incorporating strategic physical locations alongside digital channels.

• Operates across a regional footprint from New Jersey to Virginia.
• Headquarters located in Toms River, New Jersey.
• New full-service branch opened at 145 Fayette Street, Perth Amboy, NJ, 08861, in 2025.

The Perth Amboy location exemplifies the strategy of opening new full-service branches in key communities, offering specific service access points:

Blended Distribution Strategy and Digital Investment

OceanFirst Financial Corp. employs a blended strategy, integrating physical branches with robust digital channels to ensure product availability. This has involved a significant shift in resource allocation, as evidenced by past strategic decisions.

• A 2021 plan targeted closing or selling about 30% of branches.
• Approximately 50% of the savings from branch consolidation was earmarked for digital investment, including a new digital care center.
• Technology expense accounted for 20.0% of total core non-interest expense for YTD Q3-21, up from 17.8% for the full year 2020.

The digital channel supports the distribution of core services, with historical adoption metrics showing strong customer migration.

• Mobile deposits rose 134% over a two-year period ending in 2019.
• 90-day mobile usage was up 93% in the same period.
• The bank offers the AmiGo by OceanFirst Bank digital transaction account.

You see this blend in action with the provision of extended-hour Video Teller services, which directly addresses the need for accessibility outside traditional branch windows.

OceanFirst Financial Corp. (OCFC) - Marketing Mix: Promotion

OceanFirst Financial Corp. uses targeted promotional activities to drive deposit growth and communicate strategic capital deployment to investors.

Promotional Deposit Rates to Attract New Money

OceanFirst Financial Corp. promotes specific deposit products with attractive Annual Percentage Yields (APYs) to draw in new funds. For instance, as of October 30, 2025, a limited-time offer for a 4 Month CD was advertised with a 3.93% Rate and a 4.00% APY, requiring a $5,000 minimum and a $1,000,000 maximum funding amount for new money. This contrasts with standard rates for the same date.

Premier Banking Team Promotion

The Premier Banking initiative is promoted through the deployment of dedicated teams of financial professionals focused on attracting low-cost deposits. By the end of the second quarter of 2025, OceanFirst Financial Corp. had onboarded 9 teams, totaling 36 full-time employees, concentrated in markets like Manhattan and Long Island. These teams generated $115.0 million in new deposits in their initial weeks, across approximately 200 relationships, with a weighted average cost of deposits at 2.71%.

• Targeted 2025 Premier Bank deposits: $500 million.
• Multi-year aspirational deposit goal (by end of 2027): $2-3 billion.
• New accounts added in initial weeks (Q2 2025): 670.

Community-Focused Grand Opening Events

OceanFirst Financial Corp. engages in community-focused grand opening events to build local awareness for new branch locations. The Perth Amboy branch opening on June 14, 2025, included family-friendly activities, and the first 100 guests received a $10 coffee gift card, alongside limited-time account specials. The bank also promotes its commitment through volunteerism, such as its CommUNITYFirst Day in September 2024, where over 700 team members volunteered at more than 75 nonprofit organizations across New Jersey, Pennsylvania, New York, and Massachusetts.

Investor Relations and Capital Management Promotion

Investor relations actively promotes capital management as a sign of leadership confidence. On July 16, 2025, the Board authorized a 2025 Stock Repurchase Program to buy back up to an additional 3.0 million shares, which represented approximately 5% of outstanding common stock as of that date. This was incremental to the existing 2021 program. During the second quarter of 2025, the Company had already repurchased 1,003,550 shares.

Digital Marketing Emphasis

Digital marketing emphasizes the convenience and security of mobile and online banking solutions for both personal and commercial clients. Key features promoted include Touch ID™ and Face ID™ login, Mobile check deposits, and integration with digital wallets like Apple Pay, G Pay, Samsung Pay, Garmin Pay, and Fitbit Pay. Commercial clients are directed to the OFBCONNECT® portal, which supports features like ACH & wire payment capabilities and Remote deposit capture. The bank also promotes its Zelle® enrollment for secure person-to-person transfers.

OceanFirst Financial Corp. (OCFC) - Marketing Mix: Price

You're looking at how OceanFirst Financial Corp. prices its services, which is really about managing the spread between what it earns on assets and what it pays for liabilities. This involves setting loan yields competitively while keeping the cost of funding stable. The Net Interest Margin (NIM) is the key metric here, showing the effectiveness of that pricing balance.

For the second quarter of 2025, the Net Interest Margin (NIM) improved to 2.91%. By the third quarter of 2025, the NIM remained stable at 2.91%, though management guided that absent lower loan fees and higher subordinated debt costs, the overall NIM would have improved to 2.95%. Looking ahead, OceanFirst Financial Corp. expects its NIM to exceed 3.00% by mid-2026.

Here's a quick look at the core earning and funding costs for Q3 2025:

The pricing strategy for funding clearly shows a tiered approach based on the deposit type. While the total cost of deposits remained stable at 2.06% in Q3 2025, certain high-value deposit segments carry a higher cost reflecting competitive promotional rates used to attract them. For instance, Premier Banking deposits, a key growth area, carried a weighted average cost of 2.71% in Q2 2025, which then slightly decreased to 2.64% in Q3 2025, still significantly above the total cost of deposits.

You can see the cost differential in the Premier Banking initiative's pricing:

• Premier Banking Deposits Weighted Average Cost (Q2 2025): 2.71%.
• Premier Banking Deposits Weighted Average Cost (Q3 2025): 2.64%.
• Total Cost of Deposits (Q3 2025): 2.06%.
• Total Deposits (Q3 2025): $10.4 billion.

On the debt side, OceanFirst Financial Corp. recently priced a new funding instrument to manage its capital structure. This involved a public offering of $185.0 million aggregate principal amount of 6.375% Fixed-to-Floating Rate Subordinated Notes due 2035. The fixed interest rate of 6.375% per annum is set until November 15, 2030, after which it floats based on Three-Month Term SOFR plus 307.5 basis points. The estimated net proceeds are approximately $181.9 million, intended for debt repayment and growth initiatives. Also, the board declared a quarterly cash dividend of $0.20 per share payable November 14, 2025. This defintely shows how they price their long-term capital.