OceanFirst Financial Corp. Announces Second Quarter Financial Results

Core Financial Performance - For the three months ended June 30, 2024, net income available to common stockholders was $23.4 million, or $0.40 per diluted share, a decrease from $26.8 million, or $0.45 per diluted share, for the same period last year [4] - Core earnings for the same period were $22.7 million, or $0.39 per diluted share, down from $27.2 million, or $0.46 per diluted share, in the prior year [5] - The company reported core earnings before income taxes and provision for credit losses (PTPP) of $32.7 million for the three months ended June 30, 2024, compared to $37.6 million for the same period last year [2] Asset Quality - Asset quality metrics remain strong, with criticized and classified assets at 1.42%, non-performing loans at 0.33%, and loans 30 to 89 days past due at 0.10% of total loans [2] - Non-performing loans increased to $30.6 million from $26.4 million, with the allowance for loan credit losses as a percentage of total non-performing loans at 225.10% [46] Capital and Shareholder Returns - The common equity tier 1 capital ratio was 11.2%, an increase of approximately 20 basis points from the prior linked quarter [2] - The company repurchased 338,087 shares totaling $5.0 million, with 1,638,524 shares remaining available for repurchase under the authorized program [2] Interest Income and Margin - Net interest income decreased to $82.3 million from $92.1 million, primarily due to the higher interest rate environment [9] - The net interest margin decreased to 2.71% from 3.02%, reflecting the impact of increased cost of funds [31] Operating Expenses - Operating expenses decreased to $58.6 million from $62.9 million, driven by reductions in professional fees and compensation expenses [16] - Total operating expenses for the six months ended June 30, 2024, were $117.3 million, down from $124.2 million in the prior year [17] Tax and Effective Tax Rate - The provision for income taxes was $7.1 million for the three months ended June 30, 2024, compared to $9.0 million for the same period last year [19] - The effective tax rate was 22.5% for the current quarter, down from 24.4% in the prior year [19] Balance Sheet and Asset Management - Total assets decreased by $216.5 million to $13.32 billion, primarily due to decreases in loans and debt securities [20] - Average interest-earning assets decreased by $46.3 million, while the average yield for interest-earning assets increased to 5.25% from 4.91% [10]