OceanFirst Financial (US:OCFC)2025-11-04 21:17Financial Performance - Net income available to common stockholders decreased to $17.33 million for the quarter, down from $24.11 million in the same quarter last year, representing a decline of 28.2%[17] - Net income available to common stockholders decreased to $17.3 million for the three months ended September 30, 2025, compared to $24.1 million for the same period in 2024[33] - Net interest income for the quarter was $90.66 million, up from $82.22 million in the same quarter last year, indicating a year-over-year increase of 10.4%[1] - Net interest income for the nine months ended September 30, 2025, was $264.9 million, compared to $250.7 million for the same period in 2024[33] - Non-interest income for the three months ended September 30, 2025 decreased to $12.3 million from $14.7 million, impacted by net losses on equity investments of $7,000[42] - Operating expenses for the three months ended September 30, 2025 increased to $76.3 million from $63.7 million, primarily due to restructuring charges of $4.1 million and an increase in compensation and benefits of $5.5 million[44] Asset and Liability Management - Total assets increased to $14.32 billion as of September 30, 2025, compared to $13.33 billion in the previous quarter, reflecting a growth of 7.5%[1] - Total liabilities increased by $952.7 million to $12.67 billion, primarily related to an increase in FHLB advances and deposits[27] - FHLB advances increased by $633.0 million to $1.71 billion, while deposits increased by $369.7 million to $10.44 billion[27] - The loan-to-deposit ratio was 101.2%, compared to 100.5% in the previous period[27] - Stockholders' equity decreased to $1.65 billion, primarily due to the redemption of preferred stock and capital returns[30] Loan Performance - Total loans increased by $372.9 million, representing a 14% annualized growth rate, with commercial loan originations rising 74% to $739.2 million from the previous quarter[19] - Total loans increased by $439.9 million to $10.56 billion, with a loan pipeline increase of $557.3 million to $863.9 million[26] - Non-performing loans increased to $41.26 million, representing 0.39% of total loans receivable, up from 0.28% in the same quarter last year[1] - Non-performing loans accounted for 0.39% of total loans as of September 30, 2025, compared to 0.35% at December 31, 2024[76] - The allowance for loan credit losses as a percentage of total loans receivable was 0.77%, slightly down from 0.78% in the previous quarter[1] - The allowance for loan credit losses was 0.77% of total loans, an increase from 0.73%[76] Capital and Regulatory Compliance - The common equity tier one capital ratio declined to 10.6%, driven by loan growth and increased lending commitments[29] - The Company satisfied all regulatory capital requirements as of September 30, 2025, with Tier 1 capital to risk-weighted assets at 11.28%[63] - Total capital to risk-weighted assets was 13.06% for the Company as of September 30, 2025, exceeding the required 10.50%[63] Shareholder Returns - The company declared a quarterly cash dividend of $0.20 per share, consistent with the previous quarter[18] - Cash dividends on common stock declared and paid during the nine months ended September 30, 2025, were $34.8 million, while preferred stock dividends were $2.0 million[59] - The Company repurchased 1,404,253 shares totaling $24.4 million during the nine months ended September 30, 2025[31] Interest Rate Risk Management - Management actively monitors interest rate risk, which could significantly impact earnings and stockholders' equity[93] - The Company's weighted average age of non-maturity deposit accounts was approximately 12.4 years, with a weighted average cost of 2.01%[97] - The net interest income sensitivity results indicated that the Company was modestly liability sensitive to rising rate scenarios and modestly asset sensitive to falling rate scenarios as of September 30, 2025[99] - The EVE sensitivity to a 200 basis point decrease in interest rates showed a change of (1.7)% as of September 30, 2025[99] Non-Performing Assets - Non-performing assets increased to $48.76 million as of September 30, 2025, from $37.34 million as of December 31, 2024[73] - The Company sold non-performing residential and consumer loans totaling $7.3 million during the nine months ended September 30, 2025[74] - The Company's other real estate owned increased to $7.5 million from $1.8 million, primarily due to one commercial loan[76]