From GlobeNewswire: 2025-04-24 16:35:00

OceanFirst Financial Corp. reported a net income of $20.5 million for the quarter ended March 31, 2025, a decrease from the previous year. Core earnings were $20.3 million, while core earnings before income taxes and provision for credit losses were $32.4 million for the same period.

The company’s net interest margin increased to 2.90%, with net interest income rising to $86.7 million. Commercial and industrial loans increased by $95.1 million, and provision for credit losses was $5.3 million, reflecting a net loan reserve build of $5.2 million.

Chairman and CEO Christopher D. Maher highlighted the company’s strong asset quality metrics and capital accretion. The board declared a quarterly cash dividend on common stock of $0.20 per share, to be paid on May 16, 2025, and a dividend on preferred stock of $0.4375 per depositary share, to be paid on May 15, 2025.

The first quarter saw an increase in net interest income and margin for OceanFirst Financial Corp. Average interest-earning assets decreased due to a drop in commercial loans and securities. The company also benefited from funding cost repricing efforts and a sale of non-performing loans. The average yield for interest-earning assets decreased to 5.13%, while the cost of average interest-bearing liabilities decreased to 2.78%. Net interest income increased by $3.3 million, with a net interest margin of 2.90%. Provision for credit losses was $5.3 million, and net loan charge-offs were $636,000.

Non-interest income decreased to $11.3 million, excluding non-core operations. Other income increased by $1.8 million, primarily due to gains on equity investments. Operating expenses increased to $64.3 million, driven by compensation and benefits. Income tax expense was $6.8 million, with an effective tax rate of 24.1%.

Total assets decreased to $13.31 billion, with decreases in debt securities and loans held-for-sale. Debt securities available-for-sale decreased by $81.3 million, and debt securities held-to-maturity decreased by $40.4 million. Loans held-for-sale decreased by $11.5 million. Total loans increased by $7.2 million to $10.13 billion, while the loan pipeline increased by $197.8 million to $504.4 million. Other assets decreased by $14.9 million to $170.8 million. Total liabilities decreased by $118.3 million to $11.60 billion, primarily due to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, with time deposits at $2.12 billion.

The Company’s tangible common equity increased by $7.3 million to $1.12 billion. Stockholders’ equity increased to $1.71 billion. Capital levels remain strong, with common equity tier one capital ratio at 11.2%. Asset quality showed an increase in non-performing loans to $37.0 million, with an allowance for loan credit losses at 0.78% of total loans.

The Company will hold its Annual Meeting of Stockholders on May 19, 2025, with the record date set at March 25, 2025. Voting before the meeting is encouraged, and a live webcast link will be available. A conference call for earnings is scheduled on April 25, 2025, at 11:00 a.m. Eastern Time, with access information provided. OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services in New Jersey and major metropolitan areas from Massachusetts to Virginia. A replay of their conference call will be available by phone and internet. The company’s financial statements show net income for the first quarter of 2025 was $21,509. Loans receivable as of March 31, 2025, totaled $10,125,310. OceanFirst Financial Corp.’s loan pipeline includes commercial and industrial loans, excluding certain commercial loan pool purchases and non-performing residential and consumer loans. Deposits at the end of March 2025 totaled $10,177,023, with various account types. Asset quality saw non-performing loans increase to $36,970, with delinquent loans at $46,246. Net loan recoveries were $636 for the three months ended March 31, 2025. Net interest income for the same period was $86,652, with a net interest margin of 2.90%. OceanFirst Financial Corp. reported total assets of $13,309,278 for March 31, 2025. The net income attributable to the company was $21,509 with diluted earnings per share of $0.35. The return on average assets was 0.62%, and the efficiency ratio stood at 65.67%. Tangible common equity to tangible assets was 8.76%.

In the first quarter of 2025, OceanFirst Financial Corp. had core earnings of $20,349, excluding non-recurring items. The return on average tangible stockholders’ equity was 7.00%, and the efficiency ratio was 65.81%. The tangible common equity to tangible assets ratio was 8.76%.

The company’s total stockholders’ equity for March 31, 2025, was $1,709,117. After deducting goodwill and intangibles, the tangible common equity was $1,118,542. The tangible stockholders’ equity to tangible assets ratio was 9.19%, while the tangible common equity to tangible assets ratio was 8.76%.

OceanFirst Financial Corp. also reported wealth assets under administration and management of $149,106 for the first quarter of 2025. The number of full-service customer facilities remained at 39. Quarterly average balances for total assets were $13,311,893, with total deposits of $10,030,051.

These figures demonstrate OceanFirst Financial Corp.’s financial stability and performance in the first quarter of 2025, showcasing steady growth and profitability in various key metrics. The company continues to focus on enhancing its core earnings and maintaining a strong balance sheet.



Read more at GlobeNewswire:: OceanFirst Financial Corp. Announces First Quarter