Financial Performance - Net income available to common stockholders rose to $24.1 million for the quarter, up from $19.7 million in the same period last year, resulting in diluted earnings per share of $0.42[17] - Net income available to common stockholders for the three months ended September 30, 2024, increased to $24.1 million, or $0.42 per diluted share, compared to $19.7 million, or $0.33 per diluted share, for the same period in 2023[30] - Net interest income was stable at $82.2 million, compared to $82.3 million in the prior linked quarter[19] - Net interest income decreased to $82.2 million and $250.7 million for the three and nine months ended September 30, 2024, down from $91.0 million and $281.9 million in the same prior year periods[35] - Other income for the three months ended September 30, 2024 increased to $14.7 million, compared to $10.8 million in the same prior year period, driven by net gains on equity investments and a gain on sale of a portion of the Company's trust business[37] Assets and Liabilities - Total assets increased to $13.49 billion as of September 30, 2024, compared to $13.32 billion in the previous quarter[10] - Total assets decreased by $49.8 million to $13.49 billion as of September 30, 2024, primarily due to a decrease in total loans[26] - Total liabilities decreased by $82.3 million to $11.79 billion, mainly due to lower deposits[27] - Total stockholders' equity increased to $1.69 billion, reflecting net income and partially offset by capital returns[29] - 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[60] Loans and Deposits - Total deposits increased by $122.2 million to $10.1 billion, with a loan-to-deposit ratio of 99%[19] - Total loans decreased by $172.4 million to $10.02 billion, with a significant reduction in the commercial portfolio by $188.4 million driven by loan payoffs[26] - Loan originations increased by $206.4 million to $430.9 million, primarily in commercial loans[26] - Deposits decreased by $318.8 million to $10.12 billion, with high-yield savings accounts decreasing by $326.9 million[27] - The loan-to-deposit ratio increased to 99.1%, compared to 97.7%[27] Asset Quality - Non-performing loans decreased by $5.3 million to $28.1 million, representing 0.28% of total loans receivable[19] - Non-performing loans represented 0.28% of total loans as of September 30, 2024, a slight decrease from 0.29% as of December 31, 2023[69] - The allowance for loan credit losses was 0.69% of total loans as of September 30, 2024, up from 0.66% as of December 31, 2023[69] - Total non-performing loans and assets decreased to $28.1 million as of September 30, 2024, from $29.5 million as of December 31, 2023[67] - The Company reported a decrease in delinquent loans (30-89 days) to $15.5 million from $19.2 million[69] Capital and Dividends - The common equity tier one capital ratio increased to 11.3%, up approximately 40 basis points from December 31, 2023[28] - The Company declared a quarterly cash dividend of $0.20 per share, to be paid on November 15, 2024[18] - Cash dividends on common stock declared and paid during the first nine months of 2024 were $35.2 million[54] Operating Efficiency - The efficiency ratio increased to 65.77% from 62.86% in the previous quarter, indicating higher operating expenses relative to income[10] - Operating expenses decreased to $63.7 million for the three months ended September 30, 2024, down from $64.5 million in the same prior year period, despite merger-related expenses[39] Regulatory and Accounting Changes - The Company adopted ASU 2022-03 in 2024, which clarified that contractual restrictions on equity securities do not affect fair value measurement, with no material impact on financial statements[76] - The adoption of ASU 2023-02 in 2024 allows for tax equity investments to be accounted for using the proportional amortization method, also with no material impact[77] - The Company does not expect ASU 2023-05, effective January 1, 2025, to materially impact consolidated financial statements regarding joint venture formations[78] - ASU 2023-07, effective after December 15, 2023, requires improved segment reporting disclosures, with the Company currently assessing its impact[79] Risk Management - The Company reported a modest asset sensitivity as of September 30, 2024, with net interest income sensitivity results indicating a change due to various factors[90] - Interest rate risk management strategies include managing loan origination and retention, emphasizing stable deposits, and utilizing interest rate swaps[85] - The Company acknowledges inherent shortcomings in its interest rate risk measurement methodology, which may oversimplify actual market responses[92]
OCEANFIRST FINL(OCFCP) - 2024 Q3 - Quarterly Report