OceanFirst Financial (US:OCFC)2025-05-02 20:05Financial Performance - Net income available to common stockholders for Q1 2025 decreased to $20.5 million, or $0.35 per diluted share, compared to $27.7 million, or $0.47 per diluted share in Q1 2024[17] - Operating expenses for Q1 2025 were $64.294 million, slightly down from $64.849 million in the previous quarter[1] - The Company reported a net benefit of $842,000 in other income and $1.3 million in normal incentive-related adjustments during the current quarter[16] - Interest income decreased to $153.7 million from $161.6 million, with the yield on average interest-earning assets decreasing to 5.13% from 5.26%[30] - Net income available to common stockholders decreased to $20.5 million, or $0.35 per diluted share, compared to $27.7 million, or $0.47 per diluted share[29] Asset and Liability Management - Total assets decreased to $13.309 billion from $13.421 billion in the previous quarter[1] - Total liabilities decreased by $118.3 million to $11.60 billion, with deposits increasing by $110.7 million to $10.18 billion[26] - Total stockholders' equity increased to $1.709 billion from $1.703 billion in the previous quarter[1] - The Company’s stockholders' equity to total assets ratio was 12.84% as of March 31, 2025[55] - The loan-to-deposit ratio was 99.5%, down from 100.5%[26] Credit Quality - Provision for credit losses was $5.3 million, resulting in an allowance for loan credit losses of 0.78%, up from 0.73% in the previous quarter[19] - Non-performing loans increased to $36.970 million from $35.527 million in the previous quarter[1] - Non-performing assets increased to $38,887,000 as of March 31, 2025, compared to $37,338,000 at December 31, 2024[64] - Delinquent loans (30-89 days) rose to $46,246,000 from $36,550,000, primarily due to two commercial relationships classified as substandard[67] - The company's non-performing loans represented 0.37% of total loans as of March 31, 2025, compared to 0.35% at December 31, 2024[67] Loan and Deposit Activity - Commercial and industrial loans increased by $95.1 million, or 6.1%, compared to the linked quarter, with the total commercial loan pipeline increasing 90% to $375.6 million[19] - The Company had total loans outstanding of $10.13 billion, with 51.4% ($5.20 billion) in investor-owned commercial real estate loans[56] - Outstanding commitments to originate loans totaled $504.4 million, with undrawn lines of credit at $1.30 billion[45] - Cash dividends declared and paid during the three months ended March 31, 2025, totaled $11.7 million for common stock and $1.0 million for preferred stock[49] - The Company repurchased 398,395 shares of common stock for a total of $6.9 million during the quarter[47] Capital and Regulatory Compliance - As of March 31, 2025, the Company maintained a Tier 1 capital ratio of 9.73% and a total capital ratio of 14.64%, exceeding regulatory requirements[54] - The Company has detailed contingency capital plans and performs capital stress tests to ensure adequate capital under various scenarios[52] - The allowance for loan credit losses as a percentage of total loans was 0.78% as of March 31, 2025, up from 0.73% at December 31, 2024[64] Interest Rate Sensitivity - The Economic Value of Equity (EVE) sensitivity shows a decrease of 2.3% under a 300 basis points rate shock, compared to a decrease of 6.2% as of December 31, 2024[86] - The net interest income sensitivity indicates a modest asset sensitivity at March 31, 2025, with a 0.4% increase under a 100 basis points rate shock[86] - Under a 300 basis points rate shock, net interest income is projected to decrease by 3.5% as of March 31, 2025, compared to a decrease of 2.6% as of December 31, 2024[86] - The Company has observed a reduction in deposit costs, contributing to the changes in EVE sensitivity[87] - The model does not account for the Company's business or strategic plans in response to changes in interest rates[88]