Credit Losses and Allowances - The Bank's loan allowance for credit losses (ACL) as a percentage of total loans increased to 0.73% in 2024 from 0.66% in 2023[76] - The total charge-offs for 2024 were $2.22 million, a decrease from $8.69 million in 2023[77] - The provision for credit losses for 2024 was $5.48 million, down from $18.70 million in 2023[77] - The net charge-offs for 2024 were $1.56 million, compared to $8.38 million in 2023, reflecting improved credit quality[78] - The Bank's total ACL at the end of 2024 was $73.61 million, up from $67.14 million in 2023[79] - The commercial real estate - investor category accounted for 41.8% of the total ACL in 2024, with an amount of $30.78 million[79] Loans and Deposits - The average net loans outstanding during 2024 were $10.02 billion, slightly up from $10.01 billion in 2023[78] - Total deposits decreased by $368.6 million to $10.07 billion at December 31, 2024, from $10.43 billion in the prior year, primarily due to a planned runoff of brokered time deposits[90] - The Bank's total uninsured deposits increased to $5.75 billion at December 31, 2024, compared to $5.32 billion in 2023, with adjusted uninsured deposits representing 16.5% of total deposits[91] - The Bank's average deposits for the year ended December 31, 2024, were $10.26 billion, with an average interest rate of 2.36%[92] - The Bank's time deposits of $250,000 or more totaled $457.2 million, with a weighted average rate of 4.47%[92] Securities and Investments - The Bank's securities portfolio is primarily viewed as a source of income and liquidity, providing collateral for deposits and managing interest rate risk[80] - The majority of the Bank's mortgage-backed securities are issued or guaranteed by U.S. government agencies, which entail a lesser degree of credit risk[83] - The municipal portfolio provides tax-advantaged yield and is generally comprised of general obligation and revenue bonds issued by governmental entities[84] - The Bank's total debt securities amounted to $1.89 billion at December 31, 2024, with a weighted average yield of 4.11%[86] - The Bank's investment in FHLB New York stock was $68.4 million and $53.7 million at December 31, 2024 and 2023, respectively[164] - The Bank's total investment in Federal Reserve Bank of Philadelphia stock was $39.8 million and $39.7 million at December 31, 2024 and 2023, respectively[165] - The Federal Reserve Bank of Philadelphia paid dividends totaling $1.7 million for the year ended December 31, 2024, compared to $1.6 million in the prior year[166] Capital and Regulatory Compliance - The Company exceeded all regulatory capital requirements as of December 31, 2024, with Tier 1 capital to average assets at 9.50% compared to the required 4.00%[126] - Common equity Tier 1 capital to risk-weighted assets was reported at 11.17%, exceeding the required 7.00%[126] - Total capital to risk-weighted assets stood at 14.52%, surpassing the required 10.50%[126] - As of December 31, 2024, the Bank's Tier 1 capital to average assets ratio was 8.99%, exceeding the required 4.00%[142] - The Common Equity Tier 1 capital to risk-weighted assets ratio was 11.83%, surpassing the required 7.00%[142] - Total capital to risk-weighted assets ratio stood at 12.61%, above the required 10.50%[142] - The Bank was in compliance with the loans-to-one borrower limitations as of December 31, 2024[153] - The Bank and the Company are in compliance with the capital conservation buffer requirements[140] - The Bank's capital position indicates it satisfies the criteria to be classified as well-capitalized[147] - The Bank's management is not aware of any practices that could lead to the termination of deposit insurance[151] - The Bank's capital distribution may be restricted if it falls below regulatory requirements, impacting its ability to pay dividends or repurchase stock[155] Acquisitions and Growth - The Company completed the acquisition of Spring Garden on October 1, 2024, for a total consideration of $162.7 million, enhancing its specialty finance offerings[97] - The Company has made several acquisitions, including Spring Garden Capital Group, LLC, to expand its specialty finance offerings[102] - The Company will continue to evaluate potential acquisition opportunities to further create stockholder value[98] Employee and Community Engagement - As of December 31, 2024, the Bank had a total of 1,031 employees, with approximately 67% being female and an average tenure of over seven years[103] - The Bank promotes health and wellness by offering flexible work schedules and various programs focusing on mental and emotional health[105] - The Bank's talent acquisition strategy emphasizes internal promotions and employee referrals to develop talent from within[106] - The Company is committed to maintaining a workforce that reflects the communities it serves, supported by internship and entry-level development programs[107] - Since 2020, the Bank has provided over $625 million in loans and investments benefiting communities it serves[163] - The Bank committed to invest at least $14 million in a mortgage loan subsidy fund over five years as part of settlement agreements with the DOJ and HUD[162] Operating Expenses and Assessments - The Bank incurred total deposit insurance assessment expenses of $9.7 million in 2024, slightly down from $9.9 million in 2023[152] - A special assessment of $418,000 was incurred in 2024 due to the FDIC's final rule, compared to $1.7 million in 2023[152] - The Bank paid OCC assessments totaling $1.3 million and $1.2 million for the years ended December 31, 2024 and 2023, respectively[156] - The FDIC's risk-based assessment system charges lower premiums to institutions deemed less risky, impacting the Bank's operating expenses[148] Performance and Evaluation - The Bank received a CRA Performance Evaluation rating of "Outstanding" for the evaluation period from 2021 to 2023[160] - The Company was in compliance with Board guidelines for interest rate risk sensitivity scenarios as of December 31, 2024 and 2023[377] - The measure of Economic Value of Equity (EVE) at risk decreased in all rate scenarios from December 31, 2023 to December 31, 2024[379]

Group 1 - OceanFirst Financial is a New Jersey-based bank with a total balance sheet of approximately $13.4 billion and an equity value of $1.7 billion, which includes nearly $60 million in preferred equity [1] - The bank primarily focuses on issuing commercial real estate [1] Group 2 - The investment group European Small Cap Ideas provides exclusive access to actionable research on appealing Europe-focused investment opportunities, particularly in the small-cap space [1] - The focus of the investment group is on high-quality ideas emphasizing capital gains and dividend income for continuous cash flow [1] - The group features two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Financial Data and Key Metrics - The company's quarterly earnings release and related earnings supplement are available on the company website, oceanfirstcom [3] - Remarks during the call may contain forward-looking statements and non-GAAP financial measures, with participants advised to refer to SEC filings for a complete discussion of these statements [4] Business Lines and Key Metrics - No specific data provided in the content regarding individual business lines or key metrics Market Data and Key Metrics - No specific data provided in the content regarding market data or key metrics Company Strategy and Industry Competition - No specific data provided in the content regarding company strategy or industry competition Management Commentary on Operating Environment and Future Outlook - No specific data provided in the content regarding management commentary on the operating environment or future outlook Other Important Information - The call is being moderated by Brika, with all lines muted during the presentation portion and an opportunity for questions and answers at the end [2] - Alfred Goon, SVP of Corporate Development and Investor Relations, introduced the call and reminded participants of the availability of earnings materials on the company website [3] Q&A Session - No specific questions or answers were provided in the content regarding the Q&A session

Group 1 - OceanFirst Financial Corp. held its Q4 2024 earnings conference call on January 24, 2025 [1] - The call was moderated by Brika, with Alfred Goon serving as the host and Senior Vice President of Corporate Development and Investor Relations [2][3] - The company emphasized the availability of the quarterly earnings release and related supplements on its website [3] Group 2 - Christopher Maher, the Chairman and CEO, was introduced to provide insights during the call [4][5]

Financial Performance - OceanFirst Financial Corp reported net income of $22.1 million and EPS of $0.38 for Q4 2024[6] - The company's net interest margin was 2.69% in Q4 2024[6] - The core return on average assets (ROAA) was 0.65%, and the core return on tangible common equity (ROTCE) was 7.89%[6] - The core efficiency ratio was 67.7%[6] Loan Portfolio - Net loans totaled $10.1 billion[6] - The loan portfolio is composed of $5.288 billion in CRE investor-owned loans, $902 million in CRE owner-occupied loans, $648 million in C&I loans, $3.050 billion in residential loans, and $230 million in home equity & consumer loans[7] - Commercial loans have increased by $5.9 billion since 2015[15] - Non-performing loans accounted for 0.27% of total loans[6] Deposit Base - Total deposits amounted to $10.1 billion[6] - The deposit base includes $1.617 billion in non-interest-bearing deposits, $4.001 billion in interest-bearing deposits, $1.301 billion in money market accounts, $1.066 billion in savings accounts, and $2.081 billion in time deposits[7] - Commercial deposits represent 52% of the total, while consumer deposits account for 48%[21]

Core Insights - OceanFirst Financial (OCFC) reported a revenue of $95.56 million for the quarter ended December 2024, reflecting a year-over-year decline of 4.1% and an EPS of $0.38 compared to $0.45 a year ago [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $95.7 million, resulting in a surprise of -0.15%, while the EPS exceeded the consensus estimate of $0.36 by 5.56% [1] Financial Performance Metrics - Efficiency Ratio stood at 67.9%, higher than the three-analyst average estimate of 67.1% [4] - Net Interest Margin was reported at 2.7%, matching the average estimate based on three analysts [4] - Average Balance of Total Interest-Earning Assets was $12.33 billion, slightly above the estimated $12.32 billion [4] - Net Interest Income reached $83.33 million, surpassing the three-analyst average estimate of $82.91 million [4] - Total Non-Interest Income was $12.23 million, below the average estimate of $12.45 million [4] - Income from Bank Owned Life Insurance was $2.54 million, exceeding the two-analyst average estimate of $1.91 million [4] - Bankcard Services Revenue was $1.60 million, lower than the two-analyst average estimate of $1.82 million [4] - Fees and Service Charges amounted to $6.21 million, slightly above the two-analyst average estimate of $6.05 million [4] Stock Performance - OceanFirst shares have returned +5.7% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - OceanFirst Financial (OCFC) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.45 per share a year ago, indicating a 15.56% year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $95.56 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.15% and down from $99.69 million year-over-year [2] - Over the last four quarters, OceanFirst has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - OceanFirst shares have increased approximately 5% since the beginning of the year, outperforming the S&P 500's gain of 3.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $95.93 million, and for the current fiscal year, it is $1.60 on revenues of $406.47 million [7] - The estimate revisions trend for OceanFirst is mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Savings and Loan industry, to which OceanFirst belongs, is currently in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income available to common stockholders for Q4 2024 was $20.9 million, or $0.36 per diluted share, down from $26.7 million, or $0.46 per diluted share in Q4 2023[2]. - Core earnings for Q4 2024 were $22.1 million, or $0.38 per diluted share, compared to $26.3 million, or $0.45 per diluted share in Q4 2023[3]. - Net income attributable to OceanFirst Financial Corp. was $21,909 thousand for the three months ended December 31, 2024, down 12.4% from $25,116 thousand in the prior quarter[48]. - Net income attributable to OceanFirst Financial Corp. for the quarter ended December 31, 2024, was $21,909, a decrease from $27,682 in the same quarter of 2023[69]. - Core earnings (Non-GAAP) decreased to $93,559 million in 2024 from $104,718 million in 2023, a decline of approximately 10.7%[79]. - Core diluted earnings per share fell to $1.60 in 2024, down from $1.78 in 2023, representing a decrease of about 10.1%[79]. Revenue and Income Sources - Net interest income decreased to $83.3 million in Q4 2024 from $87.8 million in Q4 2023, with net interest margin at 2.69%, down from 2.82%[7]. - Other income for Q4 2024 increased to $12.2 million from $11.9 million in Q4 2023, driven by increases in bank owned life insurance income and net gain on sale of loans[18]. - Total interest income for the year ended December 31, 2024, was $642,173 thousand, an increase of 5.6% compared to $607,974 thousand for the year ended December 31, 2023[48]. - Net interest income for the year ended December 31, 2024, was $334,035, down from $369,731 in the previous year[64]. Loan and Deposit Activity - Loan growth for Q4 2024 was $95.9 million, or 4% annualized, with originations increasing by 20% to $515.2 million[5]. - Total deposits remained at $10.1 billion, with a net increase of $76.5 million, or 3% annualized, excluding brokered deposit run-off[5]. - Total deposits as of December 31, 2024, were $10,066,342, slightly down from $10,434,949 a year earlier[69]. - Total loans receivable as of December 31, 2024, amounted to $10,118,072, an increase from $10,022,156 in the previous quarter[50]. - Total consumer loans receivable reached $3,280,225 as of December 31, 2024, up from $3,246,188 in the previous quarter[50]. - Total commercial loans receivable increased to $6,837,847 as of December 31, 2024, compared to $6,775,968 in the previous quarter[50]. Expenses and Efficiency - Operating expenses for the quarter ended December 31, 2024, increased to $64.8 million from $60.2 million, impacted by non-core items of $110,000 related to merger expenses[24]. - The efficiency ratio for Q4 2024 was 67.86%, up from 60.38% in Q4 2023[2]. - Excluding non-core operations, operating expenses increased by $6.2 million, driven by a $4.5 million rise in compensation and benefits due to acquisitions[25]. - Total operating expenses for the year ended December 31, 2024, were $245,877 thousand, slightly down from $248,912 thousand in the previous year, a decrease of 1.2%[48]. - Efficiency ratio worsened to 67.86% in Q4 2024 from 60.38% in Q4 2023[72]. Asset and Liability Management - Total assets decreased by $117.0 million to $13.42 billion, primarily due to a $76.5 million decrease in total loans[31]. - Total liabilities decreased by $157.8 million to $11.72 billion, with deposits down by $368.6 million to $10.07 billion[32]. - The loans-to-deposit ratio increased to 100.5% from 97.7%[32]. - Total assets as of December 31, 2024, were $13,495,402, compared to $13,487,029 as of December 31, 2023, reflecting a slight increase[64]. - Total liabilities increased to $11.842 billion as of December 31, 2024, from $11.750 billion in the previous quarter[62]. Credit Quality - Provision for credit losses for Q4 2024 was $3.5 million, compared to $3.2 million in Q4 2023[15]. - The Company's non-performing loans increased to $35.5 million, representing 0.35% of total loans[36]. - The allowance for loan credit losses was 0.73% of total loans, up from 0.66%[36]. - Non-performing loans totaled $35,527 as of December 31, 2024, up from $28,139 in the previous quarter, indicating a 26.8% increase[54]. - The provision for credit losses was $3,467 thousand for the three months ended December 31, 2024, compared to $517 thousand in the previous quarter, indicating an increase in credit loss provisions[48]. - Provision for credit losses was $7,689 million in 2024, significantly lower than $17,678 million in 2023, indicating improved credit quality[79]. Shareholder Returns - The company declared a quarterly cash dividend of $0.20 per share, marking the 112th consecutive quarterly dividend[5]. - Book value per common share increased to $29.08 at the end of Q4 2024 from $27.96 at the end of Q4 2023[74]. - Total stockholders' equity increased to $1.70 billion, reflecting net income and offset by $21.5 million in share repurchases[34]. - Stockholders' equity rose to $1.703 billion as of December 31, 2024, compared to $1.689 billion in the previous quarter[62]. - Tangible common equity decreased to $1,111,242 million in December 2024 from $1,090,759 million in December 2023, a decrease of about 1.9%[82].

Core Points - OceanFirst Financial Corp. reported a net income of $20.9 million, or $0.36 per diluted share, for Q4 2024, down from $26.7 million, or $0.46 per diluted share, in Q4 2023 [1][2][46] - For the full year 2024, net income available to common stockholders was $96.0 million, or $1.65 per diluted share, compared to $100.0 million, or $1.70 per diluted share, in 2023 [1][2][46] - Core earnings for Q4 2024 were $22.1 million, or $0.38 per diluted share, down from $26.3 million, or $0.45 per diluted share, in Q4 2023 [2][3] - The company experienced a decrease in net interest income to $83.3 million in Q4 2024 from $87.8 million in Q4 2023, with a net interest margin of 2.69%, down from 2.82% [6][9][11] Financial Performance - Return on average assets for Q4 2024 was 0.61%, down from 0.78% in Q4 2023 [1][3] - Return on average stockholders' equity decreased to 4.88% in Q4 2024 from 6.41% in Q4 2023 [1][3] - Efficiency ratio increased to 67.86% in Q4 2024 from 60.38% in Q4 2023, indicating higher operating expenses relative to income [1][3] Loan and Deposit Growth - Loan growth for Q4 2024 was $95.9 million, or 4% annualized, with a 20% increase in originations to $515.2 million [3][5] - Total deposits remained stable at $10.1 billion, with a 3% annualized increase excluding brokered deposit run-off [3][5] - The loan pipeline increased to $306.7 million, up from $183.0 million year-over-year [28] Asset Quality - Non-performing loans increased to $35.5 million, representing 0.35% of total loans, up from 0.29% a year earlier [33][34] - The allowance for loan credit losses as a percentage of total non-performing loans was 207.19%, down from 227.21% [34] Capital and Equity - Total stockholders' equity increased to $1.70 billion from $1.66 billion, reflecting net income and share repurchases [31][32] - The common equity tier one capital ratio increased to 11.2%, up approximately 30 basis points from the previous year [30] Dividends - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 112th consecutive quarterly dividend [4]

RED BANK, N.J., Jan. 21, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:"OCFC"), (the "Company"), announced that its Board of Directors has declared a quarterly cash dividend of $0.4375 per share for every depositary share, representing 1/40th interest in the Series A Preferred Stock, payable on February 17, 2025 to stockholders of record on January 31, 2025. OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank N.A., founded in 1902, is a regional bank providing financial services throughou ...