OceanFirst Financial Corp. Announces First Quarter Financial Results

Core Financial Performance - OceanFirst Financial Corp. reported net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for Q1 2025, down from $27.7 million, or $0.47 per diluted share, in the same period last year [1] - Core earnings for the same quarter were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, year-over-year [2] - Core earnings before taxes and provision for credit losses (PTPP) were $32.4 million, or $0.56 per diluted share, compared to $36.2 million, or $0.62 per diluted share, in the prior year [3] Performance Ratios - Return on average assets was 0.62% for Q1 2025, slightly up from 0.61% in the previous quarter but down from 0.82% a year ago [1] - Return on average stockholders' equity was 4.85% for Q1 2025, down from 6.65% in the same quarter last year [1] - Efficiency ratio improved to 65.67% from 67.86% in the previous quarter but was higher than 59.56% a year ago [1] Net Interest Income and Margin - Net interest income increased to $86.7 million for Q1 2025, up from $83.3 million in the previous quarter and $86.2 million a year ago [40] - Net interest margin rose to 2.90%, an increase of 21 basis points from 2.69% in the previous quarter and from 2.81% a year ago [5][12] - The total cost of deposits decreased to 2.06% from 2.32% in the previous quarter, contributing to margin expansion [11] Loan and Deposit Growth - Total loans increased by $7.2 million to $10.13 billion, while the loan pipeline increased by $197.8 million to $504.4 million [23] - Commercial and industrial loans rose by $95.1 million, or 6.1%, compared to the previous quarter [5] - Deposits increased by $110.7 million to $10.18 billion, primarily due to increases in non-interest bearing, savings, and time deposits [24] Provision for Credit Losses - Provision for credit losses was $5.3 million for Q1 2025, up from $591,000 in the same quarter last year [15] - Net loan charge-offs were $636,000, compared to $349,000 in the prior year [16] - The allowance for loan credit losses increased to 0.78% of total loans, up from 0.73% [29] Stockholder Returns and Dividends - The Board of Directors declared a quarterly cash dividend of $0.20 per share, marking the 113th consecutive quarterly dividend [4] - The Company repurchased 398,395 shares totaling $6.9 million during the quarter [26] Financial Condition - Total assets decreased by $112.0 million to $13.31 billion, primarily due to decreases in total debt securities [23] - Total stockholders' equity increased to $1.71 billion, reflecting net income and capital returns [26] - The Company's common equity tier one capital ratio remained strong at 11.2% [25]