Financial Performance - Net income available to common stockholders for Q4 2025 was $13.1 million, or $0.23 per diluted share, down from $20.9 million, or $0.36 per diluted share in Q4 2024[2]. - Core earnings for Q4 2025 were $23.5 million, or $0.41 per diluted share, an increase from $22.1 million, or $0.38 per diluted share in Q4 2024[3]. - Net income for the year ended December 31, 2025, was $71.027 million, a decrease from $100.390 million in 2024, representing a decline of 29.2%[58]. - Basic earnings per share for the three months ended December 31, 2025, was $0.23, down from $0.30 in the previous quarter[58]. - Net income attributable to OceanFirst Financial Corp. was $13,093 million for the quarter, compared to $17,330 million in the previous quarter[77]. - Core diluted earnings per share for Q4 2025 were $0.41, an increase from $0.38 in Q4 2024[83]. Loan and Asset Growth - Total loans increased by $474.0 million, representing an 18% annualized growth rate, with loan originations at $1.05 billion for the quarter[6]. - Total loans receivable as of December 31, 2025, reached $11.032 billion, up from $10.558 billion at the end of the previous quarter, indicating a growth of 4.5%[60]. - Loans receivable net of allowance for loan credit losses increased to $10,970,666 thousand as of December 31, 2025, compared to $10,489,852 thousand on September 30, 2025, and $10,055,429 thousand on December 31, 2024[56]. - The loan pipeline increased by $167.4 million to $474.1 million, primarily due to a rise in the commercial loan pipeline[33]. - Commercial real estate loans increased to $5.421 billion as of December 31, 2025, from $5.211 billion in the previous quarter, reflecting a growth of 4.0%[60]. Interest Income and Margin - Net interest income rose by $4.6 million, or 5%, to $95.3 million, with a net interest margin of 2.87%, up from 2.69% in Q4 2024[8]. - Total interest income for the three months ended December 31, 2025, was $171.732 million, an increase from $162.194 million in the previous quarter[58]. - Net interest income after provision for credit losses for the year ended December 31, 2025, was $344.052 million, compared to $326.346 million in 2024, reflecting a year-over-year increase of 5.2%[58]. - The average yield on loans for the three months ended December 31, 2025, was 6.80%, compared to 6.46% in the previous quarter[60]. - The net interest rate spread for the year was 2.36%, an increase from 2.13% in the previous year, indicating improved efficiency in interest income generation[73]. Operating Expenses - Operating expenses increased to $84.1 million in Q4 2025, up from $64.8 million in Q4 2024, impacted by restructuring and merger-related expenses[26]. - Total operating expenses for the three months ended December 31, 2025, were $84.142 million, an increase from $76.327 million in the previous quarter[58]. - Operating expenses (excluding non-core operations) were $71,227 million, slightly lower than $72,390 million in the previous quarter[77]. - Operating expenses increased to $296.2 million for the year ended December 31, 2025, compared to $245.9 million in 2024, with non-core operations impacting expenses by $16.9 million[28]. Capital and Equity - The estimated common equity tier one capital ratio was 10.7% as of December 31, 2025, positively impacted by a credit risk transfer on a $1.5 billion pool of residential loans[6]. - Total stockholders' equity decreased to $1.66 billion, primarily due to the redemption of preferred stock for $55.5 million[38]. - Tangible common equity increased by $24.8 million to $1.14 billion, with a tangible common equity to tangible assets ratio of 8.09%[40]. - Stockholders' equity for OceanFirst Financial Corp. was $1,662,550 thousand as of December 31, 2025, slightly up from $1,652,537 thousand on September 30, 2025, but down from $1,701,650 thousand on December 31, 2024[56]. - The ratio of tangible stockholders' equity to tangible assets was 8.09%, slightly down from 8.12% in the previous quarter[86]. Dividends and Share Repurchase - The quarterly cash dividend declared was $0.20 per share, marking the 116th consecutive quarterly dividend[5]. - The company repurchased 1,433,537 shares totaling $24.9 million at a weighted average cost of $17.21 during the year ended December 31, 2025[39]. - The company maintained a cash dividend of $0.20 per common share for the last four quarters[80]. Proposed Merger - The company announced a merger agreement with Flushing Financial Corporation, expected to close in Q2 2026, subject to regulatory approvals[5]. - The company is in the process of a proposed transaction with Flushing Financial Corporation, which is subject to various risks and uncertainties, including regulatory approvals and market conditions[48]. - OceanFirst anticipates filing a registration statement on Form S-4 with the SEC, which will include a joint proxy statement/prospectus for stockholder votes regarding the proposed transaction[52]. - The company emphasizes the importance of reviewing the registration statement and joint proxy statement/prospectus for detailed information about the proposed transaction and associated risks[53]. - OceanFirst and Flushing's directors and executive officers may be participants in the solicitation of proxies related to the proposed transaction, with further details to be provided in the registration statement[54]. Asset Quality - The allowance for loan credit losses was 0.76% of total loans, up from 0.73% in the previous year, with non-performing loans decreasing to $27.8 million[41]. - Non-performing loans decreased to $27,791 million from $41,263 million in the previous quarter, a reduction of 32.5%[65]. - Total non-performing assets declined to $38,057 million, down from $48,761 million, indicating a decrease of 22%[65]. - The total allowance for loan credit losses as a percentage of total non-performing loans was 301.27%, up from 196.87% in the previous quarter, indicating a stronger reserve position[65]. - The company has been actively managing its asset quality, with significant sales of non-performing loans recorded in the previous quarters[66].
OCEANFIRST FINL(OCFCP) - 2025 Q4 - Annual Results