OceanFirst Financial (OCFC) - 2024 Q3 - Quarterly Results

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].