OceanFirst Financial (US:OCFC)2021-05-06 20:05Financial Performance - Net interest income for the quarter ended March 31, 2021, was $73.6 million, down from $79.6 million in the same quarter of the previous year[30]. - The diluted earnings per share for the quarter was $0.53, compared to $0.54 for the previous quarter[1]. - Net income available to common stockholders was $31.7 million, or $0.53 per diluted share, for the quarter ended March 31, 2021, up from $16.5 million, or $0.27 per diluted share, for the same period in 2020[35]. - Interest income decreased to $84.9 million for the quarter ended March 31, 2021, down from $98.2 million in the prior year period[36]. - Operating expenses decreased to $51.7 million for the quarter ended March 31, 2021, down from $62.8 million in the same prior year period[41]. - The provision for income taxes was $10.7 million for the quarter ended March 31, 2021, compared to $4.0 million for the same prior year period[42]. Asset and Liability Management - Total assets increased by $129.2 million to $11.58 billion at March 31, 2021, compared to $11.45 billion at December 31, 2020[32]. - Loans receivable, net of allowance for loan credit losses, rose by $115.7 million to $7.82 billion at March 31, 2021, from $7.70 billion at December 31, 2020[32]. - Deposits increased by $75.2 million to $9.50 billion at March 31, 2021, compared to $9.43 billion at December 31, 2020[33]. - The loan-to-deposit ratio was 82.84% at March 31, 2021, compared to 82.27% at December 31, 2020[33]. - Total interest-bearing liabilities were reported at $7,447,518, with interest-bearing checking accounts comprising $3,623,132[73]. Equity and Capital - Stockholders' equity increased to $1.50 billion at March 31, 2021, compared to $1.48 billion at December 31, 2020[34]. - The stockholders' equity per common share increased to $24.84 at the end of the period, up from $24.57 at the end of the previous quarter[1]. - The Company maintained a stockholders' equity to total assets ratio of 12.95%, slightly down from 12.96% at December 31, 2020[55]. - Total capital to risk-weighted assets ratio stood at 15.60% as of March 31, 2021, significantly above the regulatory minimum of 10.50%[54]. Loan Quality and Credit Losses - Non-performing loans decreased to $34.1 million at March 31, 2021, from $36.4 million at December 31, 2020[1]. - The allowance for loan credit losses totaled $60.0 million, or 0.76% of total loans, as of March 31, 2021, compared to $60.7 million, or 0.78% of total loans at December 31, 2020[63]. - The Company's non-performing loans decreased to $34.1 million at March 31, 2021, from $36.4 million at December 31, 2020, representing a reduction of approximately 6.3%[63]. - The benefit for credit loss expense was $620,000 for the quarter ended March 31, 2021, compared to a provision for credit loss expense of $10.0 million for the same period in 2020[39]. Interest Rate Sensitivity - The company's one-year interest sensitivity gap was positive at 22.82%, an increase from 18.05% at December 31, 2020[72]. - The interest sensitivity gap indicates a positive outlook for net interest income under rising interest rates[75]. - The analysis of interest rate sensitivity is based on certain assumptions that may oversimplify actual market responses[75]. - The cash liquidity position remains elevated, impacting interest rate sensitivity[76]. - The overall loan and debt securities portfolio growth continues to impact interest rate sensitivity positively[76]. Other Income and Expenses - Other income increased to $20.8 million for the quarter ended March 31, 2021, compared to $13.7 million for the same prior year period[40]. - The Company repurchased 500,000 shares at a weighted average cost of $19.94 during the quarter ended March 31, 2021[34]. - The reserve for repurchased loans and loss sharing obligations was $1.2 million as of March 31, 2021, consistent with the previous reporting period[58]. - The Company has commitments to fund undrawn lines of credit totaling $725.8 million for commercial and $377.7 million for consumer/construction as of March 31, 2021[59]. Economic Value of Equity - Economic Value of Equity (EVE) under a 300 basis point rate shock increased by 31.6% to $2,135,781 as of March 31, 2021[76]. - The EVE under a static scenario is $1,623,437, with a Net Interest Income of $294,985, showing no change in percentage[76]. - Under a 100 basis points rate shock, the EVE is $1,831,006, with a Net Interest Income of $312,951, indicating a 12.8% and 6.1% increase respectively[76]. - The EVE under a 200 basis points rate shock is $2,000,867, with a Net Interest Income of $329,626, representing a 23.2% and 11.7% increase respectively[76]. - The EVE decreased to $1,336,840 under a (100) basis points rate shock, with a Net Interest Income of $281,029, reflecting a 17.7% and 4.7% decrease respectively[76].