Financial Performance - Net income available to common stockholders for the quarter was $23,369 thousand, down from $27,663 thousand in the prior quarter, representing a decrease of 15.5%[10] - Diluted earnings per share decreased to $0.40 for the quarter ended June 30, 2024, compared to $0.47 in the previous quarter[10] - Net income available to common stockholders for Q2 2024 decreased to $23.4 million, or $0.40 per diluted share, compared to $26.8 million, or $0.45 per diluted share in Q2 2023[28] - Operating expenses for the three months ended June 30, 2024 decreased to $58.6 million from $62.9 million, and for the six months ended June 30, 2024, they decreased to $117.3 million from $124.2 million, reflecting cost management initiatives[36][37] Asset and Liability Management - Total assets decreased to $13,321,755 thousand as of June 30, 2024, from $13,418,978 thousand in the previous quarter[10] - Total liabilities decreased by $231.2 million to $11.65 billion, primarily due to lower deposits[25] - Stockholders' equity increased to $1.68 billion, reflecting net income and share repurchases[27] - The Company maintained a stockholders' equity to total assets ratio of 12.59% as of June 30, 2024, compared to 12.28% as of December 31, 2023[55] Loan and Credit Quality - The provision for credit losses increased to $3,114 thousand from $591 thousand in the prior quarter, reflecting additional charge-offs[10] - Non-performing loans as a percentage of total loans receivable remained low at 0.33% as of June 30, 2024, compared to 0.35% in the previous quarter[10] - Total loans decreased by $175.3 million to $10.02 billion, with a significant reduction in the commercial portfolio by $165.3 million[24] - The allowance for loan credit losses was 0.69% of total loans as of June 30, 2024, compared to 0.66% as of December 31, 2023[64] Interest Income and Expense - Net interest income for the quarter was $82,263 thousand, down from $86,224 thousand in the previous quarter[10] - Interest income for the three and six months ended June 30, 2024 increased to $159.4 million and $321.0 million, respectively, compared to $150.1 million and $289.1 million for the same prior year periods, with a yield on average interest-earning assets rising to 5.25%[30] - Interest expense for the three and six months ended June 30, 2024 increased to $77.2 million and $152.5 million, respectively, from $58.0 million and $98.2 million in the corresponding prior year periods, driven by higher costs of interest-bearing liabilities[31] Capital Ratios - The common equity tier 1 capital ratio was reported at 11.2%, an increase of approximately 20 basis points from the prior linked quarter[17] - The company's common equity tier one capital ratio increased to 11.23%, up approximately 35 basis points from December 31, 2023[26] - The Company’s Tier 1 capital to risk-weighted assets ratio was 12.56% as of June 30, 2024, exceeding the required 8.50%[54] - The total capital to risk-weighted assets ratio was 14.56% as of June 30, 2024, above the required 10.50%[54] Shareholder Returns - The Company repurchased 338,087 shares totaling $5,000 thousand, with 1,638,524 shares remaining available for repurchase[17] - Cash dividend per share remained stable at $0.20 for the quarter ended June 30, 2024[16] - Cash dividends on common stock declared and paid during the first six months of June 30, 2024 were $23.6 million, with an additional $2.0 million for preferred stock[50] Regulatory and Accounting Changes - The Company did not identify any triggering events for goodwill impairment during the reporting period[69] - The adoption of ASU 2022-03 did not have a material impact on the Company's consolidated financial statements[70] - The Company expects no material impact from the adoption of ASU 2023-02 on its consolidated financial statements[71] - The Company does not anticipate a material impact from ASU 2023-05 on its consolidated financial statements[72] Risk Management - The Company actively manages interest rate risk through various strategies, including managing loan origination and deposit structures[79] - The Company utilizes an interest rate risk model to measure changes in EVE and net interest income under various interest rate scenarios[80] - The net interest income sensitivity results indicate that as of June 30, 2024, the Company was modestly asset sensitive[83]
OCEANFIRST FINL(OCFCP) - 2024 Q2 - Quarterly Report