OceanFirst Financial Corp. Announces Quarterly and Annual Financial Results

Core Financial Performance - The company reported net income available to common stockholders of $13.1 million, or $0.23 per diluted share, for Q4 2025, down from $20.9 million, or $0.36 per diluted share, in Q4 2024 [1] - For the year ended December 31, 2025, net income was $67.1 million, or $1.17 per diluted share, compared to $96.0 million, or $1.65 per diluted share, in 2024 [1] - 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 [2] - Core earnings before taxes and provision for credit losses (PTPP) for Q4 2025 were $33.2 million, or $0.58 per diluted share, up from $29.6 million, or $0.51 per diluted share, in Q4 2024 [3] Loan and Deposit Growth - Total loans increased by $474.0 million, representing an 18% annualized growth rate, primarily driven by commercial loans [5] - Loan originations for the quarter were robust at $1.05 billion, with a strong loan pipeline of $474.1 million [5] - Total deposits increased by $898.1 million to $10.96 billion, with significant growth in time deposits and interest-bearing deposits [33] Net Interest Income and Margin - Net interest income rose by $4.6 million, or 5%, to $95.3 million for Q4 2025, with a net interest margin of 2.87%, up from 2.69% in Q4 2024 [5][9] - For the year ended December 31, 2025, net interest income increased to $360.2 million from $334.0 million, with a net interest margin of 2.90%, up from 2.72% [12] Capital and Equity - The estimated common equity tier one capital ratio was 10.7% as of December 31, 2025, indicating strong capital levels [5][35] - Total stockholders' equity decreased to $1.66 billion from $1.70 billion, primarily due to the redemption of preferred stock and capital returns [36] Asset Quality - Non-performing loans decreased to $27.8 million, representing 0.25% of total loans, down from 0.35% in the previous year [40] - The allowance for loan credit losses as a percentage of total non-performing loans increased to 301.27% from 207.19% [40] Strategic Initiatives - The company announced a merger agreement with Flushing Financial Corporation and an investment from Warburg Pincus to enhance financial performance and operational scale [4] - The anticipated closing of the merger transaction is expected in Q2 2026, subject to regulatory approvals and shareholder consent [4]