Financial 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 $17,330 thousand, a decrease of 3.8% from $19,046 thousand in the prior quarter[52] - Net income available to common stockholders (GAAP) for Q3 2025 was $17,330,000, compared to $24,112,000 in Q3 2024, representing a decrease of 28.3% year-over-year[75] - Core earnings (Non-GAAP) for Q3 2025 were $20,348,000, a slight increase from $20,349,000 in Q1 2025, but down from $23,193,000 in Q3 2024[75] - Return on average assets for Q3 2025 was 0.60%, a decrease from 0.69% in Q3 2024[75] - The company reported a return on average stockholders' equity of 4.15% for the three months ended September 30, 2025, down from 5.68% in the same period last year[71] 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[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, up from $425,877 million in June 2025, reflecting a significant increase of 73.5%[54] 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 prior period[41] - Provision for credit losses increased to $4,092,000 in Q3 2025 from $517,000 in Q3 2024, indicating a significant rise in expected credit losses[75] - The allowance for loan credit losses was $81,236 million, representing 0.77% of total loans receivable as of September 30, 2025[57] Operating Expenses - Operating expenses increased to $76.3 million in Q3 2025 from $63.7 million in Q3 2024, impacted by $3.9 million in non-core operations related to restructuring charges[25] - 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, reflecting a $29.2 million increase excluding non-core operations[28] - The efficiency ratio increased to 74.13% for the three months ended September 30, 2025, compared to 65.77% in the same period last year, indicating higher operating expenses relative to income[71] Asset and Liability Management - Total assets rose by $903.4 million to $14.32 billion as of September 30, 2025, driven by a $439.9 million increase in total loans and a $434.1 million increase in debt securities available-for-sale[33] - Total liabilities increased by $952.7 million to $12.67 billion, primarily due to a $633.0 million rise in FHLB advances and a $369.7 million increase in deposits[34] - The loan-to-deposit ratio was 101.2% as of September 30, 2025, compared to 100.5% in the previous period[34] - Total liabilities increased to $12,671,237 thousand as of September 30, 2025, from $11,684,167 thousand at June 30, 2025, a growth of 8.5%[50] Shareholder Returns - The Board declared a quarterly cash dividend of $0.20 per share, marking the 115th consecutive quarterly dividend[7] - The Company repurchased 1,404,253 shares totaling $24.4 million during the nine months ended September 30, 2025[39] - Cash dividends per common share remained steady at $0.20 for the three months ended September 30, 2025, consistent with the previous quarters[72] 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]
OCEANFIRST FINL(OCFCP) - 2025 Q3 - Quarterly Results