Financial Data and Key Metrics Changes - The company reported earnings per share of $0.30 on a fully diluted GAAP basis and $0.36 on a core basis for Q3 2025 [4] - Net interest income increased by $3 million compared to the prior quarter, driven by an increase in average net loans of $242 million [5] - The net interest margin remained stable at 2.91% compared to the second quarter [5] - Total loans increased to $373 million, representing a 14% annualized growth rate [5] - Asset quality remained strong, with total loans classified as special mention and substandard decreasing 15% to $124 million, or 1.2% of total loans [5] Business Line Data and Key Metrics Changes - Loan originations for the quarter totaled $1 billion, resulting in loan growth of $373 million [8] - The commercial and industrial segment saw a 12% increase for the quarter [8] - Non-interest income increased by 5% to $12.3 million, primarily driven by strong swap demand linked to commercial growth [10] - Operating expenses for the quarter were $76 million, including $4 million of restructuring charges related to outsourcing initiatives [6] Market Data and Key Metrics Changes - Total deposits increased to $203 million, with organic growth at $321 million before decreases in broker CDs [9] - The overall weighted average cost of deposits was 2.6%, with approximately 20% of balances in non-interest-bearing demand deposit accounts (DDA) [9] Company Strategy and Development Direction - The company is focusing on loan growth, particularly in commercial and industrial loans, while expecting a runoff in the residential portfolio [15] - A strategic decision was made to outsource residential loan originations and underwriting functions to improve operating leverage and earnings in 2026 [6] - The company aims for 7% to 9% annualized loan growth for 2026, with deposits expected to grow in line with loans [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong asset quality, with non-performing loans to total loans at 0.39% [12] - The company anticipates modest short-term compression on margin in Q4 due to seasonality and residual repricing of legacy deposit relationships [12] - The expectation is to achieve a return on average assets of 90 basis points by Q4 2026, with a glide path to 1% in early 2027 [17] Other Important Information - The company declared a quarterly cash dividend of $0.20 per common share, marking the 115th consecutive quarterly cash dividend [6] - Capital levels remain robust, with an estimated common equity tier one capital ratio of 10.6% [6] Q&A Session Summary Question: Clarification on net interest income guidance - Management clarified that the 3% terminal rate refers to assumptions around Fed rate cuts, not the net interest margin [20] Question: Premier banking segment deposit growth - The growth in deposits is driven by newly hired teams and their acclimation to the bank, with expectations for continued growth [30] Question: Restructuring of the residential mortgage business - The restructuring is expected to provide about a $10 million pre-tax benefit, with some headwinds in revenue anticipated [32] Question: NDFI exposure and GovCon portfolio - Management indicated that NDFI exposure is small and focused on commercial lending, with GovCon exposure being about $100 million and well-managed [39][42] Question: ROA expectations - Management expects to achieve a 1% ROA by the first quarter of 2027 [52] Question: Deposit composition and DDA target - Current DDA composition is about 20%, with expectations remaining unchanged [55]

Financial Performance - OceanFirst reported core diluted EPS of $036 and core ROAA of 060% for Q3 2025[38] - Net interest income for Q3 2025 was $91 million[38] - The core ROTCE for Q3 2025 was 719%[38] Loan Portfolio - Total loans increased by $373 million, equivalent to a 14% annualized growth rate, with commercial and industrial (C&I) loans contributing $219 million to this increase[40, 45] - The commercial loan pipeline remains strong at $711 million, expected to drive further growth in Q4 2025[40, 45] - As of Q3 2025, non-performing loans accounted for 034% of total loans[8] Deposit Trends - Deposits, excluding brokered deposit run-off of $118 million, increased by $321 million from the previous quarter[40] - Premier Banking teams contributed $242 million in deposits as of September 30, 2025, with a weighted average cost of 264%[40, 41] - Total deposits reached $104 billion, with commercial deposits accounting for 56% and consumer deposits for 44%[8, 26] Strategic Initiatives - OceanFirst strategically decided to outsource its residential loan originations and title business platforms, anticipating annual expense savings of approximately $14 million[40] - One-time costs associated with outsourcing residential loan originations and title business platforms totaled $4 million in Q3 2025 and are expected to be approximately $8 million in Q4 2025[40]

Core Insights - OceanFirst Financial (OCFC) reported revenue of $102.96 million for the quarter ended September 2025, reflecting a year-over-year increase of 6.3% [1] - The earnings per share (EPS) for the quarter was $0.36, down from $0.39 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $102.35 million by 0.6%, while the EPS surpassed the consensus estimate of $0.34 by 5.88% [1] Financial Performance Metrics - Net Interest Margin was reported at 2.9%, matching the average estimate from two analysts [4] - The Efficiency Ratio was 74.1%, higher than the estimated 69.9% by two analysts [4] - Total Non-Interest Income was $12.3 million, exceeding the estimated $11.25 million [4] - Net Interest Income was reported at $90.66 million, slightly below the estimated $91.25 million [4] Stock Performance - OceanFirst shares have returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - OceanFirst Financial (OCFC) reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, but down from $0.39 per share a year ago, resulting in an earnings surprise of +5.88% [1] - The company posted revenues of $102.96 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.60% and increasing from $96.9 million year-over-year [2] - OceanFirst has surpassed consensus EPS estimates two times over the last four quarters and has also topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has added approximately 5.1% since the beginning of the year, while the S&P 500 has gained 14.5%, indicating underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $104.8 million, and for the current fiscal year, it is $1.40 on revenues of $404.25 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Financial Performance - Net income available to common stockholders for Q3 2025 was $17.3 million, or $0.30 per diluted share, down from $24.1 million, or $0.42 per diluted share in Q3 2024[2] - Core earnings for Q3 2025 were $20.3 million, or $0.36 per diluted share, down from $23.2 million, or $0.39 per diluted share in Q3 2024[3] - Net income attributable to OceanFirst Financial Corp. for the three months ended September 30, 2025, was $17.33 million, a decrease of 3.7% from $19.05 million in the prior quarter[52] - Net income available to common stockholders for Q3 2025 was $17,330,000, compared to $24,112,000 in Q3 2024, reflecting a decrease of 28.3% year-over-year[75] - Core earnings (Non-GAAP) for Q3 2025 were $20,348,000, a slight increase from $23,193,000 in Q3 2024, indicating a decrease of 12.5% year-over-year[75] - Return on average assets for Q3 2025 was 0.60%, an increase from 0.69% in Q3 2024, indicating a decline of 13.0% year-over-year[75] - Return on average tangible stockholders' equity for Q3 2025 was 7.19%, down from 7.85% in Q3 2024, a decrease of 8.4%[75] Loan and Deposit Growth - Total loans increased by $372.9 million, representing a 14% annualized growth rate, including a 74% increase in commercial loan originations to $739.2 million from the linked quarter[6] - Total deposits rose to $10.4 billion from $10.2 billion in the linked quarter, with a net increase of $321.2 million excluding brokered deposit run-off[6] - Total loans receivable increased to $10,557,983 million as of September 30, 2025, up from $10,185,087 million in June 2025, representing a growth of 3.66%[54] - Total deposits reached $10,435,994 million on September 30, 2025, compared to $10,232,442 million in June 2025, marking an increase of 1.98%[55] - Commercial loan originations amounted to $739,154 million for the three months ended September 30, 2025, a significant increase from $425,877 million in June 2025[54] Interest Income and Expenses - Net interest income increased to $90.7 million from $82.2 million year-over-year, with net interest margin rising to 2.91% from 2.67%[8] - Total interest income for the three months ended September 30, 2025, was $162.19 million, compared to $154.83 million in the prior quarter, an increase of 4.4%[52] - Interest expense for the quarter was $71,537 thousand, compared to $79,306 thousand in the same quarter last year, indicating a decrease of 9.8%[69] - The average yield on interest-earning assets was 5.16% for the nine months ended September 30, 2025, down from 5.25% for the same period in 2024[64] Credit Quality - Provision for credit losses was $4.1 million for Q3 2025, compared to $517,000 in Q3 2024, driven by net loan growth[17] - Non-performing loans increased to $41.3 million, representing 0.39% of total loans, up from 0.35%[41] - The allowance for loan credit losses was 0.77% of total loans, compared to 0.73% in the previous year[41] - Provision for credit losses for Q3 2025 was $4,092,000, up from $517,000 in Q3 2024, representing a significant increase of 691.5% year-over-year[75] Operating Expenses - Operating expenses increased to $76.3 million from $63.7 million year-over-year, impacted by $3.9 million in non-core operations related to restructuring charges[25] - Operating expenses for the three months ended September 30, 2025, totaled $76.33 million, an increase of 6.5% from $71.47 million in the previous quarter[52] - Operating expenses increased to $212.1 million for the nine months ended September 30, 2025, compared to $181.0 million for the same period in 2024, with a $29.2 million increase excluding non-core operations[28] Strategic Initiatives - The Company announced a strategic shift in its residential business, partnering with a national mortgage banking company, resulting in an 11% workforce reduction and anticipated annual expense savings of $14 million[5] - Restructuring charges for Q3 2025 amounted to $4,147,000, with no such charges reported in Q3 2024[75] Stockholder Equity and Dividends - The Board declared a quarterly cash dividend of $0.20 per share, marking the 115th consecutive quarterly dividend[7] - Total stockholders' equity decreased to $1.65 billion, primarily due to the redemption of preferred stock for $55.5 million[38] - Stockholders' equity for OceanFirst Financial Corp. was $1.65 billion as of September 30, 2025, compared to $1.64 billion as of June 30, 2025, showing a slight increase of 0.4%[50] - The book value per common share at the end of the period was $28.81, up from $28.64 in the previous quarter[72]

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (unaudited)](index=20&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20%28unaudited%29) Presents unaudited consolidated financial statements for OceanFirst Financial Corp. as of June 30, 2025, detailing financial condition, income, and equity changes [Consolidated Statements of Financial Condition](index=20&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased to $13.33 billion, loans increased, deposits grew, and stockholders' equity declined due to preferred stock redemption and share repurchases Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$13,327,847** | **$13,421,247** | | Loans receivable, net | $10,119,781 | $10,055,429 | | Debt securities (AFS & HTM) | $1,704,530 | $1,873,375 | | Goodwill | $523,308 | $523,308 | | **Total Liabilities** | **$11,684,167** | **$11,718,490** | | Deposits | $10,232,442 | $10,066,342 | | FHLB advances | $938,687 | $1,072,611 | | **Total Stockholders' Equity** | **$1,643,680** | **$1,702,757** | [Consolidated Statements of Income](index=21&type=section&id=Consolidated%20Statements%20of%20Income) Q2 2025 net income available to common stockholders decreased to $16.2 million ($0.28 diluted EPS) due to higher expenses and preferred stock redemption loss Quarterly Income Statement Highlights (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Income | $87,636 | $82,263 | | Provision for Credit Losses | $3,039 | $3,114 | | Total Other Income | $11,733 | $10,985 | | Total Operating Expenses | $71,474 | $58,620 | | Net Income | $19,085 | $24,432 | | Net Income Available to Common Stockholders | $16,200 | $23,369 | | Diluted Earnings Per Share | $0.28 | $0.40 | Six-Month Income Statement Highlights (in thousands, except EPS) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Interest Income | $174,288 | $168,487 | | Provision for Credit Losses | $8,379 | $3,705 | | Total Other Income | $22,986 | $23,271 | | Total Operating Expenses | $135,768 | $117,292 | | Net Income | $40,548 | $53,042 | | Net Income Available to Common Stockholders | $36,705 | $51,032 | | Diluted Earnings Per Share | $0.63 | $0.87 | [Notes to Unaudited Consolidated Financial Statements](index=27&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed disclosures cover basis of presentation, EPS, securities, loan portfolio, deposits, borrowings, fair value, derivatives, and leases, with the company operating as a single segment - The company operates as a **single operating and reportable segment**, providing regional community banking services[122](index=122&type=chunk)[123](index=123&type=chunk) - At June 30, 2025, total debt securities were **$1.63 billion** at fair value, with unrealized losses of **$90.7 million**, primarily attributed to changes in interest rates rather than credit quality[129](index=129&type=chunk)[134](index=134&type=chunk) - As of June 30, 2025, loans modified to borrowers experiencing financial difficulty totaled **$40.1 million**, up from **$30.9 million** at year-end 2024[153](index=153&type=chunk) - The company utilizes interest rate swaps and caps for both customer accommodation and to hedge its own interest rate risk, with a notional amount of total derivatives of **$1.55 billion** as of June 30, 2025[196](index=196&type=chunk)[197](index=197&type=chunk)[202](index=202&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, noting decreased net income due to higher expenses, modest loan growth, expanded net interest margin, and stable asset quality Selected Financial Data (Q2 2025 vs. Q2 2024, dollars in thousands, except per share) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total assets | $13,327,847 | $13,321,755 | | Net interest income | $87,636 | $82,263 | | Net income | $19,085 | $24,432 | | Diluted earnings per share | $0.28 | $0.40 | | Net interest margin | 2.91% | 2.71% | | Non-performing assets as a percent of total assets | 0.31% | 0.25% | - Key Q2 2025 developments included the **$57.4 million** preferred stock redemption, resulting in a **$1.8 million** net loss, the launch of a Premier Banking initiative attracting **$115.0 million** in new deposits, and repurchases of over **1 million** shares[14](index=14&type=chunk)[17](index=17&type=chunk) [Comparison of Financial Condition](index=7&type=section&id=Comparison%20of%20Financial%20Condition) Total assets decreased to $13.33 billion, loans grew, deposits increased, and stockholders' equity declined due to preferred stock redemption and share repurchases - Total assets decreased by **$93.4 million**, primarily due to principal reductions, maturities, and calls of debt securities[24](index=24&type=chunk) - The company shifted its funding mix, increasing deposits by **$166.1 million** (driven by brokered CDs) while decreasing FHLB advances by **$133.9 million**[25](index=25&type=chunk) - Stockholders' equity decreased primarily due to the **$55.5 million** redemption of preferred stock and **$24.3 million** in share repurchases during the first six months of 2025[27](index=27&type=chunk)[28](index=28&type=chunk) [Comparison of Operating Results](index=7&type=section&id=Comparison%20of%20Operating%20Results) Net income decreased for Q2 and H1 2025, despite increased net interest income and expanded net interest margin, due to a significant rise in non-interest expenses - Net interest margin for Q2 2025 increased to **2.91%** from **2.71%** in Q2 2024, as the decrease in cost of funds outpaced the decrease in the yield on average interest-earning assets[35](index=35&type=chunk) - Q2 2025 provision for credit losses was **$3.0 million**, primarily driven by net loan charge-offs of **$2.2 million** and a reserve build due to a mix-shift into commercial and industrial loans[36](index=36&type=chunk) - Operating expenses for Q2 2025 increased by **$12.9 million** year-over-year to **$71.5 million**, mainly due to a **$7.1 million** increase in compensation and benefits and a **$2.2 million** increase in professional fees[40](index=40&type=chunk)[41](index=41&type=chunk) [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with $3.5 billion in funding capacity and a CET1 ratio of 10.99%, exceeding 'well-capitalized' requirements - Total on-balance sheet liquidity and funding capacity was **$3.5 billion** at quarter-end[46](index=46&type=chunk) - Estimated adjusted uninsured deposits were **$1.73 billion**, or **16.7%** of total deposits[47](index=47&type=chunk) Regulatory Capital Ratios (Company) | Ratio | June 30, 2025 | Requirement for Capital Adequacy | | :--- | :--- | :--- | | Common equity Tier 1 | 10.99% | 7.00% | | Tier 1 capital | 11.74% | 8.50% | | Total capital | 13.56% | 10.50% | - In July 2025, the Board authorized a new stock repurchase program for up to an additional **3.0 million** shares[28](index=28&type=chunk)[54](index=54&type=chunk) [Lending Activities and Asset Quality](index=13&type=section&id=Lending%20Activities%20and%20Asset%20Quality) Total loans reached $10.19 billion, with investor-owned CRE at 49.8%; asset quality remained stable, non-performing loans at 0.33%, and allowance coverage at 236.54% - Investor-owned commercial real estate loans totaled **$5.07 billion**, or **49.8%** of total loans[63](index=63&type=chunk)[65](index=65&type=chunk) Asset Quality Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-performing loans as a % of total loans | 0.33% | 0.35% | | Non-performing assets as a % of total assets | 0.31% | 0.28% | | Allowance for loan credit losses as a % of total loans | 0.78% | 0.73% | | Allowance / Non-performing loans | 236.54% | 207.19% | - Special Mention and Substandard loans decreased by **$6.6 million** to **$153.3 million** from year-end 2024[74](index=74&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=18&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk (IRR) through ALCO, measuring EVE and NII sensitivity; it was modestly liability sensitive to rising rates as of June 30, 2025 Interest Rate Sensitivity Analysis (June 30, 2025) | Change in Interest Rates (bps) | Economic Value of Equity (% Change) | Net Interest Income (% Change) | | :--- | :--- | :--- | | +300 | (3.7)% | (2.2)% | | +200 | (1.8)% | (0.9)% | | +100 | (0.6)% | (0.1)% | | (100) | (0.3)% | (0.2)% | | (200) | (2.5)% | (0.7)% | | (300) | (7.0)% | (1.4)% | - The change in interest rate sensitivity from year-end 2024 was influenced by an increase in fixed-rate loans, a decrease in floating-rate investments, and a deposit mix shift, partially offset by an increase in short-term borrowings[94](index=94&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[97](index=97&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[98](index=98&type=chunk) PART II. Other Information [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material pending legal proceedings beyond routine ordinary course of business matters - 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, which are deemed immaterial[215](index=215&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for December 31, 2024 - No material changes to the Company's risk factors have occurred since December 31, 2024[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased over 1 million shares in Q2 2025 and authorized a new program for an additional 3.0 million shares in July 2025 - On July 16, 2025, the Board authorized a new 2025 Stock Repurchase Program to repurchase up to an additional **3.0 million** shares[217](index=217&type=chunk) Share Repurchases in Q2 2025 | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 535,263 | $17.33 | | June 2025 | 467,316 | $16.96 | [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[221](index=221&type=chunk)

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Financial Data and Key Metrics Changes - The company reported earnings per share of $0.28 on a fully diluted GAAP basis and $0.31 on a core basis for Q2 2025 [5] - Net interest income grew by $1,000,000, marking a third consecutive quarter of growth, while the net interest margin expanded by one basis point [6] - Total loans increased by $60,000,000, representing a 2% annualized growth rate, driven by strong originations of $716,000,000 [7] Business Line Data and Key Metrics Changes - Commercial and industrial loans increased by 8% for the quarter, reflecting the company's focus on this segment [7] - Non-interest income increased by 5% to $11,800,000 during the quarter, although it was down 1% compared to the prior quarter when excluding non-core items [15] - Operating expenses for the quarter were $71,000,000, in line with expectations, and included costs from recent commercial banking hires [7][18] Market Data and Key Metrics Changes - Deposit balances, excluding brokered CDs, decreased approximately 1% compared to the linked quarter but increased by $117,000,000 compared to the same period in 2024 [13] - The commercial pipeline reached a record high of $791,000,000, indicating strong lending opportunities [10] Company Strategy and Development Direction - The company is focused on organic growth and has made significant investments in hiring commercial bankers and launching the Premier Bank [6][12] - The company expects to see an increase in net interest income in the third quarter and continued improvement in margins in the second half of the year [10][16] - The company plans to maintain a stable operating expense run rate while exploring opportunities for additional expense efficiencies [18][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality, noting that total loans classified as special mention and substandard decreased by 3% [8] - The company anticipates that the current quarter represents a trough in EPS, with expectations for growth moving forward as organic growth momentum continues [6] - Management highlighted that clients are reporting good business conditions and building backlogs, which supports the outlook for loan growth [60][62] Other Important Information - The company authorized an additional 3,000,000 shares for repurchase, allowing flexibility in capital deployment [9] - The effective tax rate is expected to remain in the range of 23% to 25% [19] Q&A Session Summary Question: On the deposit side, can funding costs be reduced going forward? - Management indicated that while there is some opportunity to reduce funding costs, significant changes are not expected in the near term due to the current rates on CDs [22] Question: What is the outlook for stable non-interest income? - Management clarified that GAAP is the best base to use for guidance on stable non-interest income [32] Question: How much did new hires impact earnings this quarter? - The additional expenses from new hires impacted EPS by about $0.06, but this is expected to reverse moving forward [38] Question: What is the company's approach to M&A? - The primary focus remains on organic growth, with M&A being a lower priority given current share valuations [41] Question: How sustainable is the loan growth guidance? - Management expressed confidence in the sustainability of loan growth based on the current pipeline and client feedback [58] Question: What is the impact of rate cuts on NIM? - Management indicated that a 25 basis point cut would have a minimal impact, rounding to less than a penny per share on an annualized basis [91] Question: What is the outlook for commercial real estate? - Management expects to maintain steady CRE balances, with potential for slight growth depending on opportunities [110]

Financial Performance - Core diluted EPS was $0.46[6] - Net interest income reached $88 million[6] - Core ROAA was 0.53%[6] - Core ROTCE was 6.17%[6] Loan Portfolio - Total loans increased at an annualized rate of 2%[7] - Commercial and industrial loans grew by $132 million[7] - The commercial loan pipeline reached a record high of $791 million, a 111% increase from the previous quarter's $376 million[7] - Total loan pipeline at Q2-25 is $955 million[13] Deposit Trends - Premier Banking teams added $115 million in deposits at a weighted average cost of 2.71%[7, 10] - Total deposits increased by $55 million from the prior quarter[33] - Time deposits increased by $180 million to $2.3 billion[37] Asset Quality - Criticized loans as a % of total loans remain low at 1.43% as of Q2-25[19] - The allowance for credit losses plus unamortized credit and PCD marks amounted to $84.2 million, or 0.83% of total loans[23] Capital Management - The company repurchased 1,003,550 shares during the quarter[7] - The company redeemed all preferred stock for $57 million[7, 59]

Core Viewpoint - OceanFirst Financial reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.33 per share, and down from $0.39 per share a year ago, indicating a -6.06% earnings surprise [1][2] Financial Performance - The company posted revenues of $99.37 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.52%, compared to $93.25 million in the same quarter last year [2] - Over the last four quarters, OceanFirst has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - OceanFirst shares have increased by about 0.8% since the beginning of the year, underperforming the S&P 500's gain of 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions and Rankings - Prior to the earnings release, the estimate revisions trend for OceanFirst was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $104.05 million, and for the current fiscal year, it is $1.46 on revenues of $409.15 million [7] Industry Context - The Financial - Savings and Loan industry, to which OceanFirst belongs, is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]