Financial Performance - Net income available to common stockholders for Q1 2025 was $20.5 million, or $0.35 per diluted share, down from $27.7 million, or $0.47 per diluted share, in Q1 2024[2] - Core earnings for Q1 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, in the prior year[3] - Net income for Q1 2025 was $21.463 million, a decrease of 3.2% from $22.162 million in Q4 2024[45] - Basic earnings per share for Q1 2025 was $0.35, unchanged from Q4 2024[45] - For the three months ended March 31, 2025, net income available to common stockholders was $20,505,000, a decrease from $27,663,000 in the same period last year[67] - The return on average assets for the quarter was 0.62%, compared to 0.82% in the same quarter last year[67] Income and Expenses - Total interest income for Q1 2025 was $153.703 million, a decrease of 3.7% from $159.620 million in Q4 2024[45] - Net interest income after provision for credit losses was $81.312 million, compared to $79.862 million in Q4 2024, reflecting a 1.8% increase[45] - Total other income of $11.253 million for Q1 2025, down from $12.232 million in Q4 2024[45] - Operating expenses (excluding FDIC special assessment and merger-related expenses) were $64,294, slightly down from $64,739 in the previous quarter[62] Assets and Liabilities - Total assets decreased by $112.0 million to $13.31 billion, primarily due to decreases in total debt securities[25] - Total liabilities decreased by $118.3 million to $11.60 billion, with deposits increasing by $110.7 million to $10.18 billion[27] - Total assets as of March 31, 2025, were $13,311,893, a decrease from $13,545,052 as of December 31, 2024[62] - Total assets decreased to $13,309,278 million from $13,418,978 million a year ago, indicating a decline of approximately 0.8%[69] Loans and Credit Quality - Provision for credit losses was $5.3 million, reflecting a net loan reserve build of $5.2 million due to macroeconomic uncertainty[6] - Non-performing loans increased to $37.0 million, representing 0.37% of total loans, with an allowance for loan credit losses at 213.14% of non-performing loans[31] - The level of 30 to 89 days delinquent loans rose to $46.2 million from $36.6 million, primarily related to commercial loans[31] - Provision for credit losses increased to $5.340 million in Q1 2025, compared to $3.467 million in Q4 2024[45] - Total non-performing loans increased to $36,970 million as of March 31, 2025, compared to $35,527 million in the previous quarter, reflecting a 4.1% increase[51] - The allowance for loan credit losses rose to $78,798 million, representing 0.78% of total loans receivable, up from 0.73% in the previous quarter[51] Capital and Equity - Capital levels remained strong, with the common equity tier one capital ratio at 11.2%[28] - Total stockholders' equity increased to $1.71 billion from $1.70 billion, reflecting net income and offset by capital returns of dividends and share repurchases[29] - Tangible common equity rose by $7.3 million to $1.12 billion, with a stockholders' equity to assets ratio of 12.84%[30] - Tangible book value per common share at the end of the period was $19.16, up from $18.63 a year ago[65] - Total stockholders' equity increased to $1,709,117 million as of March 31, 2025, up from $1,665,837 million a year earlier, reflecting a growth of approximately 2.6%[69] Shareholder Actions - The Company repurchased 398,395 shares totaling $6.9 million at a weighted average cost of $17.20, with 1,228,863 shares available for repurchase[29] - Cash dividends per common share remained stable at $0.20 for the last five quarters[65] Future Outlook - The Company will host an earnings conference call on April 25, 2025, at 11:00 a.m. Eastern Time[37]

Core Financial Performance - OceanFirst Financial Corp. reported net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for Q1 2025, down from $27.7 million, or $0.47 per diluted share, in the same period last year [1] - Core earnings for the same quarter were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, year-over-year [2] - Core earnings before taxes and provision for credit losses (PTPP) were $32.4 million, or $0.56 per diluted share, compared to $36.2 million, or $0.62 per diluted share, in the prior year [3] Performance Ratios - Return on average assets was 0.62% for Q1 2025, slightly up from 0.61% in the previous quarter but down from 0.82% a year ago [1] - Return on average stockholders' equity was 4.85% for Q1 2025, down from 6.65% in the same quarter last year [1] - Efficiency ratio improved to 65.67% from 67.86% in the previous quarter but was higher than 59.56% a year ago [1] Net Interest Income and Margin - Net interest income increased to $86.7 million for Q1 2025, up from $83.3 million in the previous quarter and $86.2 million a year ago [40] - Net interest margin rose to 2.90%, an increase of 21 basis points from 2.69% in the previous quarter and from 2.81% a year ago [5][12] - The total cost of deposits decreased to 2.06% from 2.32% in the previous quarter, contributing to margin expansion [11] Loan and Deposit Growth - Total loans increased by $7.2 million to $10.13 billion, while the loan pipeline increased by $197.8 million to $504.4 million [23] - Commercial and industrial loans rose by $95.1 million, or 6.1%, compared to the previous quarter [5] - Deposits increased by $110.7 million to $10.18 billion, primarily due to increases in non-interest bearing, savings, and time deposits [24] Provision for Credit Losses - Provision for credit losses was $5.3 million for Q1 2025, up from $591,000 in the same quarter last year [15] - Net loan charge-offs were $636,000, compared to $349,000 in the prior year [16] - The allowance for loan credit losses increased to 0.78% of total loans, up from 0.73% [29] Stockholder Returns and Dividends - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 113th consecutive quarterly dividend [4] - The Company repurchased 398,395 shares totaling $6.9 million during the quarter [26] Financial Condition - Total assets decreased by $112.0 million to $13.31 billion, primarily due to decreases in total debt securities [23] - Total stockholders' equity increased to $1.71 billion, reflecting net income and capital returns [26] - The Company's common equity tier one capital ratio remained strong at 11.2% [25]

Core Viewpoint - OceanFirst Financial Corp. will redeem all outstanding shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, on May 15, 2025, as part of its strategy to optimize its balance sheet and reduce liabilities with higher funding costs [1][4]. Summary by Sections Redemption Details - The company will redeem 57,370 shares of Series A Preferred Stock at a cash redemption price of $1,000 per share, equivalent to $25 per Depositary Share [1]. - The redemption will occur on the next dividend payment date, May 15, 2025, and will include a previously declared dividend payment due on that date [1]. - The depositary will also redeem 2,294,800 Depositary Shares, each representing a 1/40th interest in a share of the Series A Preferred Stock [1]. Post-Redemption Effects - After the Redemption Date, dividends on the Series A Preferred Stock will cease to accrue, and both the Series A Preferred Stock and the Depositary Shares will no longer be considered outstanding [3]. - Holders will retain the right to receive the Redemption Price without interest [3]. Company Background - OceanFirst Financial Corp. is a regional bank with $13.3 billion in assets, providing various financial services across New Jersey and major metropolitan areas from Massachusetts to Virginia [4]. - The bank has a long history, having been founded in 1902, and is recognized as one of the largest community-based financial institutions in New Jersey [4].

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]