OceanFirst Financial (US:OCFC)2025-10-22 20:33Financial Performance - Net income available to common stockholders for Q3 2025 was $17.3 million, or $0.30 per diluted share, down from $24.1 million, or $0.42 per diluted share in Q3 2024[2] - Core earnings for Q3 2025 were $20.3 million, or $0.36 per diluted share, down from $23.2 million, or $0.39 per diluted share in Q3 2024[3] - Net income attributable to OceanFirst Financial Corp. for the three months ended September 30, 2025, was $17.33 million, a decrease of 3.7% from $19.05 million in the prior quarter[52] - Net income available to common stockholders for Q3 2025 was $17,330,000, compared to $24,112,000 in Q3 2024, reflecting a decrease of 28.3% year-over-year[75] - Core earnings (Non-GAAP) for Q3 2025 were $20,348,000, a slight increase from $23,193,000 in Q3 2024, indicating a decrease of 12.5% year-over-year[75] - Return on average assets for Q3 2025 was 0.60%, an increase from 0.69% in Q3 2024, indicating a decline of 13.0% year-over-year[75] - Return on average tangible stockholders' equity for Q3 2025 was 7.19%, down from 7.85% in Q3 2024, a decrease of 8.4%[75] Loan and Deposit Growth - Total loans increased by $372.9 million, representing a 14% annualized growth rate, including a 74% increase in commercial loan originations to $739.2 million from the linked quarter[6] - Total deposits rose to $10.4 billion from $10.2 billion in the linked quarter, with a net increase of $321.2 million excluding brokered deposit run-off[6] - Total loans receivable increased to $10,557,983 million as of September 30, 2025, up from $10,185,087 million in June 2025, representing a growth of 3.66%[54] - Total deposits reached $10,435,994 million on September 30, 2025, compared to $10,232,442 million in June 2025, marking an increase of 1.98%[55] - Commercial loan originations amounted to $739,154 million for the three months ended September 30, 2025, a significant increase from $425,877 million in June 2025[54] Interest Income and Expenses - Net interest income increased to $90.7 million from $82.2 million year-over-year, with net interest margin rising to 2.91% from 2.67%[8] - Total interest income for the three months ended September 30, 2025, was $162.19 million, compared to $154.83 million in the prior quarter, an increase of 4.4%[52] - Interest expense for the quarter was $71,537 thousand, compared to $79,306 thousand in the same quarter last year, indicating a decrease of 9.8%[69] - The average yield on interest-earning assets was 5.16% for the nine months ended September 30, 2025, down from 5.25% for the same period in 2024[64] Credit Quality - Provision for credit losses was $4.1 million for Q3 2025, compared to $517,000 in Q3 2024, driven by net loan growth[17] - Non-performing loans increased to $41.3 million, representing 0.39% of total loans, up from 0.35%[41] - The allowance for loan credit losses was 0.77% of total loans, compared to 0.73% in the previous year[41] - Provision for credit losses for Q3 2025 was $4,092,000, up from $517,000 in Q3 2024, representing a significant increase of 691.5% year-over-year[75] Operating Expenses - Operating expenses increased to $76.3 million from $63.7 million year-over-year, impacted by $3.9 million in non-core operations related to restructuring charges[25] - Operating expenses for the three months ended September 30, 2025, totaled $76.33 million, an increase of 6.5% from $71.47 million in the previous quarter[52] - Operating expenses increased to $212.1 million for the nine months ended September 30, 2025, compared to $181.0 million for the same period in 2024, with a $29.2 million increase excluding non-core operations[28] Strategic Initiatives - The Company announced a strategic shift in its residential business, partnering with a national mortgage banking company, resulting in an 11% workforce reduction and anticipated annual expense savings of $14 million[5] - Restructuring charges for Q3 2025 amounted to $4,147,000, with no such charges reported in Q3 2024[75] Stockholder Equity and Dividends - The Board declared a quarterly cash dividend of $0.20 per share, marking the 115th consecutive quarterly dividend[7] - Total stockholders' equity decreased to $1.65 billion, primarily due to the redemption of preferred stock for $55.5 million[38] - Stockholders' equity for OceanFirst Financial Corp. was $1.65 billion as of September 30, 2025, compared to $1.64 billion as of June 30, 2025, showing a slight increase of 0.4%[50] - The book value per common share at the end of the period was $28.81, up from $28.64 in the previous quarter[72]