Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2025

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 September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
AOCL balance at beginning of period, net of tax	$	(52)	$	(776)	$	(87)	$	(36)
Unrealized (losses) gains recognized in OCI	(9)		837		(102)		(418)
Losses reclassified from AOCI into interest income	65		253		193		768
AOCI balance at end of period, net of tax	$	4	$	314	$	4	$	314

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table presents the amortized cost and cumulative basis adjustment for closed portfolios of securities used to designate fair value hedging relationships (in thousands):


	As of September 30, 2025
AFS securities:
Amortized cost (excluding fair value hedge basis adjustment)	$	651,231
Fair value hedge basis adjustment	(341)

The table below presents the effects of fair value hedges on net interest income, as well as their location on the Consolidated Statements of Income (in thousands):


	Location of Gain/(Loss) Recognized in Income	Three Months Ended September 30, 2025		Nine Months Ended September 30, 2025
AFS securities:
Gain recognized on derivatives	Interest income - debt securities	$	288	$	288
Loss recognized on hedged items	Interest income - debt securities	(341)		(341)
Net loss recognized on fair value hedges	Interest income - debt securities	$	(53)	$	(53)

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 September 30, 2025
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,456,192	$	55,454	$	55,499
Derivatives Designated as Hedging Instruments
Interest rate swap contract - cash flow hedge	100,000		5		—
Interest rate swap contracts - fair value hedge	650,926		1,237		950
Total Derivatives	$	2,207,118	$	56,696	$	56,449
As of December 31, 2024
Derivatives Not Designated as Hedging Instruments
Interest rate swaps and cap contracts	$	1,468,022	$	91,352	$	91,368
Derivatives Designated as Cash Flow Hedge
Interest rate swap contract	100,000		—		115
Total Derivatives	$	1,568,022	$	91,352	$	91,483

OCEANFIRST FINANCIAL CORP 10-Q