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OceanFirst Financial Corp. Announces Third Quarter Financial Results

OCFC
  • OceanFirst Financial Corp. reported net income available to common stockholders of $17.3 million ($0.30 per diluted share) for the three months ended September 30, 2025, a decrease from $24.1 million ($0.42 per share) in the prior year period but an increase from $16.2 million ($0.28 per share) in the linked quarter.
  • For the nine months ended September 30, 2025, net income available to common stockholders was $54.0 million ($0.94 per diluted share), down from $75.1 million ($1.29 per share) in the corresponding prior year period.
  • Core earnings for the three months ended September 30, 2025, were $20.3 million ($0.36 per diluted share), while core earnings pre-tax pre-provision (PTPP) were $30.5 million ($0.54 per diluted share).
  • Total loans increased by $372.9 million to reach $10.56 billion, driven by a 14% annualized growth rate that included $219.1 million in commercial and industrial loan growth.
  • Commercial loan originations rose 74% to $739.2 million, with the commercial loan pipeline standing at $710.9 million.
  • Total deposits grew to $10.4 billion, an increase of $200 million excluding $117.7 million in brokered deposit run-off, with non-brokered deposits rising $321.2 million.
  • The Company recognized $4.1 million in restructuring charges due to a strategic decision to outsource residential loan originations and title business, which will result in an 11% workforce reduction and $14 million in annual expense savings starting in 2026.
  • Net interest income increased to $90.7 million for the quarter, with the net interest margin expanding to 2.91% primarily due to a decrease in the cost of funds.
  • Provision for credit losses was $4.1 million for the quarter, driven by net loan growth and increased unfunded loan balances, while net loan charge-offs were $617,000.
  • Non-interest expense totaled $76.3 million, adversely impacted by the $4.1 million in restructuring charges, while excluding non-core items, operating expenses increased due to higher compensation, professional fees, and occupancy costs.
  • The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on November 14, 2025, to common stockholders of record on November 3, 2025.
  • Total assets increased by $903.4 million to $14.32 billion, while total stockholders' equity decreased to $1.65 billion due to preferred stock redemption, dividends, and share repurchases.
  • The Company repurchased 1,404,253 shares totaling $24.4 million during the nine months ended September 30, 2025, with 3.2 million shares remaining available under the authorized repurchase program.
  • Non-performing loans increased to $41.3 million, representing 0.39% of total loans, while the allowance for loan credit losses as a percentage of total non-performing loans was 196.87%.
  • The loan-to-deposit ratio was 101.2% at September 30, 2025, and the common equity tier one capital ratio was 10.6%, remaining in excess of "well-capitalized" regulatory levels.
  • OceanFirst Bank N.A. serves New Jersey and major metropolitan areas between Massachusetts and Virginia, with 40 full-service customer facilities.