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 ...

The upcoming report from OceanFirst Financial (OCFC) is expected to reveal quarterly earnings of $0.36 per share, indicating a decline of 20% compared to the year-ago period. Analysts forecast revenues of $95.7 million, representing a decrease of 4% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Before a company announc ...

Financial Performance - Net interest income for the quarter was $82.2 million, stable compared to $82.3 million in the prior quarter[10] - Net income available to common stockholders increased to $24.1 million, or $0.42 per diluted share, compared to $19.7 million, or $0.33 per diluted share in the prior year[11] - Net interest income for the period was $250.706 million, compared to $281.907 million in the previous period[17] - Interest income for the three months ended September 30, 2024, increased to $161.5 million, up from $158.4 million in the prior year[25] - Other income for the three months ended September 30, 2024, increased to $14.7 million, compared to $10.8 million in the prior year[30] Dividends and Stockholder Returns - The Company declared a quarterly cash dividend of $0.20 per share, consistent with the previous quarter[12] - Cash dividends declared and paid on common stock during the first nine months of 2024 totaled $35.2 million, with an additional $3.0 million for preferred stock[45] - The Company repurchased 87,324 shares for $1.4 million and 1,383,238 shares for $21.5 million during the three and nine months ended September 30, 2024, respectively[44] Asset and Liability Management - Total assets decreased by $49.8 million to $13.49 billion, from $13.54 billion, primarily due to decreases in loans[19] - Total liabilities decreased by $82.3 million to $11.79 billion, primarily due to lower deposits, which decreased by $318.8 million to $10.12 billion[20] - The Company maintained a stockholders' equity to total assets ratio of 12.56% as of September 30, 2024, compared to 12.28% as of December 31, 2023[51] Loan Performance - Total loans decreased by $172.4 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $188.4 million driven by loan payoffs[19] - Non-performing loans decreased by $5.3 million to $28.1 million, representing 0.28% of total loans receivable[10] - The level of delinquent loans (30-89 days) decreased to $15,458,000 from $19,202,000, a decline of approximately 19.1%[1] - Special mention loans increased significantly to $85,721,000 from $40,385,000, an increase of approximately 112.2%[2] - Substandard loans decreased slightly to $103,384,000 from $106,552,000, a reduction of about 2.0%[2] Capital and Regulatory Compliance - The common equity tier one capital ratio increased to 11.3%, up approximately 40 basis points from December 31, 2023[21] - The Company satisfied all regulatory capital requirements as of September 30, 2024, with a Tier 1 capital ratio of 9.65% and total capital ratio of 14.63%[50] Interest Rate Risk Management - Management continues to monitor interest rate risk, which could significantly impact earnings and stockholders' equity[3] - The Company actively manages interest rate risk (IRR) through strategies such as emphasizing stable deposits and selectively using interest rate swaps[77] - The methodologies and assumptions for measuring IRR are periodically evaluated and refined to adapt to market changes[79] - The Company’s interest rate sensitivity is monitored through an IRR model that measures changes in EVE and net interest income under various interest rate scenarios[78] Changes in Loan Credit Losses - The allowance for loan credit losses as a percentage of total loans receivable was 0.69%[10] - Provision for credit losses for the three months ended September 30, 2024, was $517,000, significantly lower than $10.3 million for the same period last year[29] - The allowance for loan credit losses as a percentage of total non-performing loans rose to 245.45% from 227.21%[1] Acquisitions - The acquisition of Garden State Home Loans, Inc. was effective August 3, 2024, and Spring Garden Capital Group, LLC was effective October 1, 2024[13]

Financial Data and Key Metrics Changes - The company reported GAAP diluted earnings per share of $0.42, with net interest income remaining flat at $82 million compared to the prior linked quarter [5] - Operating expenses increased by $5 million to $64 million, which included $1.7 million of nonrecurring expenses related to acquisitions [5][11] - The common equity Tier 1 capital ratio increased to 11.3%, and tangible book value per share grew by 8% year-over-year to $19.28 [6] Business Line Data and Key Metrics Changes - Loan originations totaled $431 million, with $161 million in commercial and industrial (C&I) loans, and a pipeline increase of $92 million compared to the prior quarter [8] - Deposit balances increased by approximately 1%, net of a planned runoff of $200 million in brokered CDs [9] - The company recorded net recoveries of $88,000 for the quarter, with total provision for credit losses at $517,000 [9] Market Data and Key Metrics Changes - Asset quality metrics remained strong, with nonperforming loans at 0.28% of total loans and delinquencies at low levels, reflecting strong credit performance [9] - The company experienced a modest increase in deposit balances, indicating confidence in retaining consumer and commercial deposits [9] Company Strategy and Development Direction - The company is focused on driving organic growth in Q4 and into 2025, with a strategy to expand C&I lending teams and deepen deposit gathering channels [7][8] - The acquisitions of Garden State Home Loans and Spring Garden Capital are expected to support expansion in fee revenue and specialty finance offerings [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, noting that the recent hiring of C&I bankers is beginning to yield results [20] - The company anticipates modest growth in net interest income and margin, with expectations of stability in the near term [11][25] Other Important Information - The Board approved a quarterly cash dividend of $0.20 per common share, marking the 111th consecutive quarterly cash dividend [7] - The company repurchased nearly 1.4 million shares at a weighted average cost of $15.38 through September 30, 2024 [6] Q&A Session Summary Question: Can you elaborate on the two acquisitions? - Management clarified that Garden State Home Loans enhances the mortgage origination business, while Spring Garden focuses on real estate bridge lending, primarily for urban housing renovations [15][16] Question: What are the current footings in the Spring Garden business? - The current footings in the Spring Garden business are approximately $145 million [17] Question: What is the expected impact on noninterest income from the mortgage business acquisition? - Management indicated that the guidance includes expenses from both acquisitions, with expectations of a net contribution to profitability over time [30] Question: How do you expect loan yields to change over time? - Current loan yields are about 10.5% to 11%, and while they may decrease as rates go down, they will remain above commercial bank yields [33] Question: What is the customer profile driving strong deposit growth? - The company has gained wallet share in the consumer business, contributing significantly to deposit growth, alongside improvements in government and commercial banking [60]

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Core Insights - OceanFirst Financial (OCFC) reported $96.9 million in revenue for Q3 2024, a year-over-year decline of 4.8%, with an EPS of $0.39 compared to $0.32 a year ago, exceeding the Zacks Consensus Estimate of $92.79 million by 4.43% and delivering an EPS surprise of 2.63% [1] Financial Performance Metrics - Efficiency Ratio stood at 65.8%, higher than the average estimate of 63.7% from three analysts [2] - Net Interest Margin was reported at 2.7%, matching the average estimate of 2.7% from three analysts [2] - Average Balance of Total Interest-Earning Assets was $12.23 billion, slightly above the estimated $12.19 billion from two analysts [2] - Total Non-Interest Income reached $14.68 million, significantly exceeding the average estimate of $9.94 million from three analysts [2] - Net Interest Income was $82.22 million, slightly below the average estimate of $82.89 million from three analysts [2] - Bankcard Services Revenue was $1.62 million, below the average estimate of $1.80 million from two analysts [2] - Fees and Service Charges amounted to $6.10 million, surpassing the average estimate of $5.01 million from two analysts [2] - Income from Bank Owned Life Insurance was $1.78 million, slightly below the average estimate of $1.88 million from two analysts [2] Stock Performance - OceanFirst shares have returned +5.7% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Financial Performance - Net income available to common stockholders for Q3 2024 was $24.1 million, or $0.42 per diluted share, up from $19.7 million, or $0.33 per diluted share in Q3 2023[1]. - Core earnings for the three months ended September 30, 2024 were $23.2 million, or $0.39 per diluted share, compared to $18.6 million, or $0.32 per diluted share in the prior year[3]. - The Company declared a quarterly cash dividend of $0.20 per share, marking its 111th consecutive quarterly dividend[8]. - Net income for the three months ended September 30, 2024, was $25,186 million, compared to $24,432 million in the previous quarter[38]. - Basic earnings per share increased to $0.42 from $0.40 in the prior quarter[38]. - Net income attributable to OceanFirst Financial Corp. was $25,116 thousand, up from $24,373 thousand in the previous quarter, representing a growth of 3.05%[52]. - Return on average assets for the nine months ended September 30, 2024, is 0.74%[55]. - Return on average assets for Q3 2024 was 0.69%, slightly up from 0.54% in Q3 2023[59]. Asset and Liability Management - Total assets decreased by $49.8 million to $13.49 billion, primarily due to a $172.4 million decrease in total loans[23]. - Total assets increased to $13,488,483 thousand as of September 30, 2024, up from $13,321,755 thousand at June 30, 2024, representing a growth of 1.25%[36]. - Total liabilities rose to $11,793,975 thousand, compared to $11,645,086 thousand at June 30, 2024, reflecting an increase of 1.28%[36]. - Total stockholders' equity increased to $1.69 billion, reflecting net income and offset by capital returns[26]. - Total stockholders' equity as of September 30, 2024, was $1,694,508,000, an increase from $1,637,604,000 as of September 30, 2023[63]. Loan and Deposit Activity - Total deposits increased by $122.2 million to $10.1 billion, with a loan-to-deposit ratio of 99% as of September 30, 2024[4]. - Total loans decreased to $10.02 billion, with a $188.4 million decline in the commercial portfolio driven by loan payoffs[24]. - Deposits decreased by $318.8 million to $10.12 billion, with high-yield savings accounts down by $326.9 million[25]. - The loan-to-deposit ratio increased to 99.1%, compared to 97.7% in the previous period[25]. - Total deposits rose to $10,116,167 thousand as of September 30, 2024, compared to $9,994,017 thousand at June 30, 2024, marking an increase of 1.22%[41]. Credit Quality and Provisioning - Non-performing loans decreased by $5.3 million to $28.1 million, with net loan recoveries of $88,000 for the quarter[7]. - The Company recorded a provision for credit losses of $517,000 for Q3 2024, significantly lower than $10.3 million in Q3 2023[14]. - Provision for credit losses decreased to $517,000 in Q3 2024 from $10,283,000 in Q3 2023, showing a significant reduction in credit loss provisions[59]. - Non-performing loans as a percentage of total loans receivable improved to 0.28% from 0.33% in the previous quarter[43]. - The allowance for loan credit losses increased to $69,066 million, maintaining a ratio of 0.69% of total loans receivable[43]. Income and Expense Analysis - Net interest income for Q3 2024 was $82.2 million, a decrease from $91.0 million in Q3 2023, reflecting the impact of the higher interest rate environment[11]. - Operating expenses for the three months ended September 30, 2024, decreased to $63.7 million from $64.5 million, impacted by $1.7 million in merger-related expenses[19]. - Total interest income for the three months ended September 30, 2024, was $161,525 million, an increase from $159,426 million in the previous quarter[38]. - Total interest expense increased to $79,306 million from $77,163 million in the prior quarter[38]. - The efficiency ratio for Q3 2024 was 65.77%, compared to 63.37% in Q3 2023[2]. Market and Investment Performance - Other income for Q3 2024 increased to $14.7 million from $10.8 million in Q3 2023, driven by net gains on equity investments and a gain on sale of a portion of the trust business[16]. - Debt securities available-for-sale at estimated fair value increased to $911,753 thousand from $721,484 thousand, a significant increase of 26.4%[36]. - The average yield on total loans was 7.45% for the quarter ended September 30, 2024, compared to 7.44% in the previous quarter[40]. - Commercial loan originations amounted to $245,886 thousand, significantly higher than $56,053 thousand in the previous quarter, showing a substantial increase[40].

Core Insights - OceanFirst Financial (OCFC) is expected to report quarterly earnings of $0.38 per share, reflecting an 18.8% year-over-year increase, while revenues are projected to be $92.79 million, down 8.8% from the previous year [1] Earnings Estimates - Analysts have not revised the consensus EPS estimate for the quarter over the past 30 days, indicating a stable outlook among analysts [1][2] - Revisions to earnings estimates are crucial for predicting investor actions, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Financial Metrics - The 'Average Balance - Total interest-earning assets' is projected to reach $12.19 billion, down from $12.38 billion reported in the same quarter last year [4] - 'Total Non-Interest Income' is expected to be $9.94 million, compared to $10.76 million a year ago [4] - 'Net Interest Income' is forecasted at $82.89 million, down from $91 million in the previous year [5] - 'Fees and service charges' are anticipated to reach $5.01 million, compared to $5.18 million reported in the same quarter last year [5] Stock Performance - OceanFirst shares have returned +3.6% over the past month, while the Zacks S&P 500 composite has changed by +4.9% [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [5]