OceanFirst Financial (US:OCFC)2024-10-31 20:10Financial 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]