OceanFirst Financial Corp. Announces Second Quarter Financial Results
RED BANK, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:OCFC) (the "Company"), the holding company for OceanFirst Bank N.A. (the "Bank"), announced net income available to common stockholders of $16.2 million, or $0.28 per diluted share, for the three months ended June 30, 2025, a decrease from $23.4 million, or $0.40 per diluted share, for the corresponding prior year period, and a decrease from $20.5 million, or $0.35 per diluted share, for the linked quarter. For the six months ended June 30, 2025, the Company reported net income available to common stockholders of $36.7 million, or $0.63 per diluted share, a decrease from $51.0 million, or $0.87 per diluted share, for the corresponding prior year period. Selected performance metrics are as follows (refer to "Selected Quarterly Financial Data" for additional information):
For the Three Months Ended,
For the Six Months Ended,
Performance Ratios (Annualized):
June 30,2025
March 31,2025
June 30,2024
June 30,2025
June 30,2024
Return on average assets
0.49
%
0.62
%
0.70
%
0.56
%
0.76
%
Return on average stockholders' equity
3.86
4.85
5.61
4.36
6.13
Return on average tangible stockholders' equity (a)
5.66
7.05
8.10
6.36
8.86
Return on average tangible common equity (a)
5.66
7.40
8.51
6.36
9.30
Efficiency ratio
71.93
65.67
62.86
68.82
61.17
Net interest margin
2.91
2.90
2.71
2.91
2.76
(a) Return on average tangible stockholders' equity and return on average tangible common equity ("ROTCE") are non-GAAP ("generally accepted accounting principles") financial measures. Refer to "Explanation of Non-GAAP Financial Measures," "Selected Quarterly Financial Data" and "Non-GAAP Reconciliation" tables for reconciliation and additional information regarding non-GAAP financial measures.
Core earnings1 for the three and six months ended June 30, 2025 were $17.7 million and $38.0 million, respectively, or $0.31 and $0.66 per diluted share, a decrease from $22.7 million and $48.3 million, respectively, or $0.39 and $0.83 per diluted share, for the corresponding prior year periods, and a decrease from $20.3 million, or $0.35 per diluted share, for the linked quarter.
Core earnings PTPP1 for the three and six months ended June 30, 2025 was $26.4 million and $58.8 million, or $0.46 and $1.02 per diluted share, as compared to $32.7 million and $68.9 million, respectively, or $0.56 and $1.18 per diluted share, for the corresponding prior year periods, and $32.4 million, or $0.56 per diluted share, for the linked quarter. Selected performance metrics are as follows:
For the Three Months Ended,
For the Six Months Ended,
Core Ratios1 (Annualized):
June 30,2025
March 31,2025
June 30,2024
June 30,2025
June 30,2024
Return on average assets
0.53
%
0.62
%
0.68
%
0.58
%
0.72
%
Return on average tangible stockholders' equity
6.17
7.00
7.86
6.59
8.38
Return on average tangible common equity
6.17
7.34
8.26
6.59
8.81
Efficiency ratio
72.28
65.81
63.47
69.06
62.24
Diluted earnings per share
$
0.31
$
0.35
$
0.39
$
0.66
$
0.83
PTPP diluted earnings per share
0.46
0.56
0.56
1.02
1.18
Key developments for the recent quarter are described below:
Loan Growth: Total loans increased $59.8 million, representing a 2% annualized growth rate, which included $131.7 million of commercial and industrial loan growth. The commercial loan pipeline reached a record high of $790.8 million, which increased 111% from $375.6 million in the linked quarter.
Premier Banking: Launched in mid-April and is demonstrating strong progress with approximately 200 new relationships and $115.0 million in new deposits in the first few weeks of operation.
Capital: The Company repurchased 1,003,550 shares during the quarter and redeemed all of its preferred stock. Book value per share decreased $0.63 to $28.64 while tangible book value per share increased $0.18 to $19.34 as compared to the linked quarter.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company's results, "We are pleased to present our current quarter results, which reflected loan and deposit growth, stable asset quality metrics, capital returns through share repurchases, and modest net interest income and margin expansion." Mr. Maher added, "Looking ahead, we expect to continue to build on this momentum from our commercial banking teams with a record commercial loan pipeline and new deposit relationship opportunities."
The Company's Board of Directors declared its 114th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 15, 2025 to common stockholders of record on August 4, 2025.
1 Core earnings and core earnings before income taxes and provision for credit losses ("PTPP" or "Pre-Tax-Pre-Provision"), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC ("Spring Garden"), the Federal Deposit Insurance Corporation ("FDIC") special assessment and the income tax effect of these items, as well as loss on redemption of preferred stock (collectively referred to as "non-core" operations). PTPP excludes the aforementioned pre-tax "non-core" items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to "Explanation of Non-GAAP Financial Measures," "Selected Quarterly Financial Data" and the "Non-GAAP Reconciliation" tables for additional information regarding non-GAAP financial measures.
Results of Operations
During the current quarter, the Company redeemed all of its preferred stock for an aggregate payment of $57.4 million, at a redemption price of $25.00 per share, which resulted in a net loss on redemption of $1.8 million. Additionally, the current quarter included professional fees of $1.6 million related to recruitment fees for the Company's recent commercial banking hires and non-recurring benefits of $1.1 million in other income.
Net Interest Income and Margin
Three months ended June 30, 2025 vs. June 30, 2024
Net interest income increased to $87.6 million, from $82.3 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.91%, from 2.71%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in the yield on average interest-earning assets.
Average interest-earning assets decreased by $138.2 million primarily due to a decrease in securities and, to a lesser extent, commercial loans, partly offset by an increase in residential loans. The average yield for interest-earning assets decreased to 5.14%, from 5.25%.
The cost of average interest-bearing liabilities decreased to 2.77%, from 3.14%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank ("FHLB") advances. The total cost of deposits decreased 31 basis points to 2.06%, from 2.37%. Average interest-bearing liabilities decreased by $132.8 million, primarily due to decreases in other borrowings, partly offset by an increase in FHLB advances.
Six months ended June 30, 2025 vs. June 30, 2024
Net interest income increased to $174.3 million, from $168.5 million, reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.91%, from 2.76%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.
Average interest-earning assets decreased by $185.8 million, primarily driven by a decrease in securities and, to a lesser extent, loans. The average yield decreased to 5.14%, from 5.25%.
The cost of average interest-bearing liabilities decreased to 2.77%, from 3.09%. The total cost of deposits decreased to 2.06%, from 2.34%. Average interest-bearing liabilities decreased by $179.6 million, primarily due to decreases in total deposits and other borrowings, partly offset by an increase in FHLB advances.
Three months ended June 30, 2025 vs. March 31, 2025
Net interest income increased by $1.0 million, to $87.6 million from $86.7 million and net interest margin increased to 2.91%, from 2.90%, primarily reflecting the impact of purchase accounting and prepayment fees of 0.04% and 0.03%, respectively.
Average interest-earning assets decreased by $46.5 million, primarily due to a decrease in securities. The yield on average interest-earning assets increased to 5.14%, from 5.13%.
Average interest-bearing liabilities decreased by $36.1 million, primarily due to decreases in interest-bearing checking deposits and FHLB advances, partly offset by an increase in time deposits. The total cost of average interest-bearing liabilities decreased to 2.77%, from 2.78%, primarily due to lower cost of time deposits, partly offset by an increase in the cost of other borrowings. The total cost of deposits remained stable at 2.06% for both periods.
Provision for Credit Losses
Provision for credit losses for the three and six months ended June 30, 2025 was $3.0 million and $8.4 million, respectively, as compared to $3.1 million and $3.7 million for the corresponding prior year periods, and $5.3 million for the linked quarter. The current quarter provision was primarily driven by net loan charge-offs of $2.2 million, a net reserve build due to mix-shift into commercial and industrial loans, and an increase in unfunded credit commitments.
Net loan charge-offs were $2.2 million and $2.9 million for the three and six months ended June 30, 2025, respectively, as compared to net loan charge-offs of $1.5 million and $1.8 million for the corresponding prior year periods and $636,000 for the linked quarter. The current and linked quarter includes charge-offs of $445,000 and $720,000 related to sales of non-performing residential and consumer loans of $2.2 million and $5.1 million, respectively. The current quarter includes $1.6 million of charge-offs related to two commercial relationships related to the Company's recent acquisition. The prior year includes the impact of a $1.6 million charge-off on a single commercial real estate relationship.
Non-interest Income
Three months ended June 30, 2025 vs. June 30, 2024
Other income increased to $11.7 million, as compared to $11.0 million. Other income was favorably impacted by non-core operations related to net gains on equity investments of $488,000 in the current quarter, and $887,000 for the prior year quarter.
Excluding non-core operations, other income increased by $1.1 million. The primary drivers were increases related to net gain on sale of loans of $757,000 and non-recurring other income of $1.1 million, partly offset by a loss on other real estate operations of $260,000.
Six months ended June 30, 2025 vs. June 30, 2024
Other income decreased to $23.0 million, as compared to $23.3 million. Other income was favorably impacted by non-core operations of $693,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $4.0 million related to net gains on equity investments and sale of a portion of the Company's trust business.
Excluding non-core operations, other income increased by $3.0 million. The primary drivers were increases related to net gain on sale of loans of $1.3 million, commercial loan swap income of $448,000 and non-recurring other income of $1.9 million in the current period, partly offset by a loss on other real estate operations of $276,000.
Three months ended June 30, 2025 vs. March 31, 2025
Other income in the linked quarter was $11.3 million and was favorably impacted by non-core operations of $205,000 related to net gains on equity investments. Excluding non-core operations, other income increased by $197,000. The primary driver was non-recurring other income of $1.1 million as noted above, partly offset by non-recurring other income of $842,000 in the prior quarter and a decrease in commercial loan swap income of $413,000.
Non-interest Expense
Three months ended June 30, 2025 vs. June 30, 2024
Operating expenses increased by $12.9 million to $71.5 million, as compared to $58.6 million. The primary driver was an increase in compensation and benefits of $7.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and the additional commercial banking teams hired during the current quarter. Additional drivers were increases in professional fees of $2.2 million, primarily due to recruitment fees, other operating expenses of $1.9 million, mostly due to additional loan servicing expense, data processing expense of $790,000, partly due to acquisitions at the end of the prior year, and increased marketing spend of $366,000.
Six months ended June 30, 2025 vs. June 30, 2024
Operating expenses increased to $135.8 million, as compared to $117.3 million. Operating expenses were adversely impacted by non-core operations related to FDIC special assessment in the prior year of $418,000.
Excluding non-core operations, operating expenses increased by $18.9 million. The primary driver was an increase in compensation and benefits of $11.1 million, mostly due to acquisitions at the end of the prior year, annual merit increases, and the additional commercial banking team hires. Additional drivers were increases in other operating expenses of $2.9 million, mostly due to additional loan servicing expense, professional fees of $1.9 million, primarily due to the recruitment fees, data processing of $1.5 million, partly due to acquisitions at the end of the prior year, occupancy of $577,000, and marketing of $484,000.
Three months ended June 30, 2025 vs. March 31, 2025
Operating expenses increased by $7.2 million to $71.5 million, as compared to $64.3 million. The primary drivers were increases in compensation and benefits of $3.5 million due to additional banking team hires, partly offset by $1.3 million of normal incentive-related adjustments in the prior quarter, and professional fees of $1.9 million primarily due to recruitment of commercial bankers noted above. Additionally, other operating expense increased by $1.4 million, partly related to higher title costs.
Income Tax Expense
The provision for income taxes was $5.8 million and $12.6 million for the three and six months ended June 30, 2025, as compared to $7.1 million and $17.7 million for the same prior year periods and $6.8 million for the linked quarter. The effective tax rate was 23.2% and 23.7% for the three and six months ended June 30, 2025, as compared to 22.5% and 25.0% for the same prior year periods and 24.1% for the linked quarter. The effective tax rate for the six months ended June 30, 2024 was negatively impacted by 1.6% due to a non-recurring write-off of a deferred tax asset of $1.2 million.
Financial Condition
June 30, 2025 vs. December 31, 2024
Total assets decreased by $93.4 million to $13.33 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $91.9 million to $735.6 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $76.9 million to $969.0 million, from $1.05 billion, primarily due to principal repayments. Total loans increased by $67.0 million to $10.19 billion, from $10.12 billion, while the loan pipeline increased by $648.1 million to $954.8 million, from $306.7 million, primarily due to an increase in commercial loans of $593.3 million. Other assets decreased by $33.4 million to $152.3 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.
Total liabilities decreased by $34.3 million to $11.68 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $166.1 million to $10.23 billion, from $10.07 billion, primarily due to an increase in time deposits. Time deposits increased to $2.30 billion, from $2.08 billion, representing 22.5% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $448.1 million, partly offset by a decrease in retail time deposits of $229.4 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $133.9 million to $938.7 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.
Other liabilities decreased by $63.6 million to $234.8 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.
Capital levels remain strong and in excess of "well-capitalized" regulatory levels at June 30, 2025, including the Company's estimated common equity tier one capital ratio which declined to 11.0%, driven primarily by stock repurchases and increased lending commitments.
Total stockholders' equity decreased to $1.64 billion, as compared to $1.70 billion, primarily due to the redemption of preferred stock for $55.5 million and capital returns comprised of dividends and share repurchases, partially offset by net income. Additionally, accumulated other comprehensive loss decreased by $4.4 million primarily due to increases in the fair market value of available-for-sale debt securities, net of tax.
During the six months ended June 30, 2025, the Company repurchased 1,401,945 shares totaling $24.3 million representing a weighted average cost of $17.17. As of June 30, 2025, the Company had 226,284 shares available for repurchase under the authorized repurchase program. On July 16, 2025, the Company announced its Board of Directors authorized a 2025 Stock Repurchase Program to repurchase up to an additional 3.0 million shares.
The Company's tangible common equity2 decreased by $1.7 million to $1.11 billion. The Company's stockholders' equity to assets ratio was 12.33% at June 30, 2025, and tangible common equity to tangible assets ratio increased by 5 basis points during the year to 8.67%, primarily due to the drivers described above.
Book value per common share decreased to $28.64, as compared to $29.08. Tangible book value per common share2 increased to $19.34, as compared to $18.98.
2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders' equity and total assets. Refer to "Explanation of Non-GAAP Financial Measures" and the "Non-GAAP Reconciliation" tables for additional information regarding non-GAAP financial measures.
Asset Quality
June 30, 2025 vs. December 31, 2024
The Company's non-performing loans decreased to $33.5 million, from $35.5 million, and represented 0.33% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 236.54%, as compared to 207.19%. The level of 30 to 89 days delinquent loans decreased to $14.7 million, from $36.6 million, primarily related to residential loans. Criticized and classified loans and other real estate owned decreased to $153.3 million, from $159.9 million. The Company's allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to "Provision for Credit Losses" section for further discussion.
The Company's asset quality, excluding purchased with credit deterioration ("PCD") loans, was as follows. Non-performing loans decreased to $26.7 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 296.75%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $12.2 million, from $33.6 million.
Explanation of Non-GAAP Financial Measures
Reported amounts are presented in accordance with GAAP. The Company's management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Conference Call
As previously announced, the Company will host an earnings conference call on Friday, July 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 170810. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, from one hour after the end of the call until August 1, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.
OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.
Forward-Looking Statements
In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe", "expect", "intend", "anticipate", "estimate", "project", "will", "should", "may", "view", "opportunity", "potential", or similar expressions or expressions of confidence. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company's lending area, real estate market values in the Company's lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, and retaliatory responses, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company's deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company's market area, changes in investor sentiment and consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company's operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank's ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(dollars in thousands)
June 30,2025
March 31,2025
December 31,2024
June 30,2024
(Unaudited)
(Unaudited)
(Unaudited)
Assets
Cash and due from banks
$
170,599
$
163,721
$
123,615
$
181,198
Debt securities available-for-sale, at estimated fair value
735,561
746,168
827,500
721,484
Debt securities held-to-maturity, net of allowance for securities credit losses of $809 at June30, 2025, $898 at March 31, 2025, $967 at December 31, 2024 and $958 at June 30, 2024(estimated fair value of $896,090 at June 30, 2025, $926,075 at March 31, 2025, $952,917 atDecember 31, 2024 and $1,003,850 at June 30, 2024)
968,969
1,005,476
1,045,875
1,105,843
Equity investments
87,808
87,365
84,104
104,132
Restricted equity investments, at cost
106,538
102,172
108,634
92,679
Loans receivable, net of allowance for loan credit losses of $79,266 at June 30, 2025,$78,798 at March 31, 2025, $73,607 at December 31, 2024 and $68,839 at June 30, 2024
10,119,781
10,058,072
10,055,429
9,961,117
Loans held-for-sale
15,744
9,698
21,211
2,062
Interest and dividends receivable
44,032
44,843
45,914
50,976
Other real estate owned
7,680
1,917
1,811
—
Premises and equipment, net
113,474
114,588
115,256
117,392
Bank owned life insurance
271,184
269,398
270,208
267,867
Assets held-for-sale
—
—
—
28
Goodwill
523,308
523,308
523,308
506,146
Intangibles
10,834
11,740
12,680
7,859
Other assets
152,335
170,812
185,702
202,972
Total assets
$
13,327,847
$
13,309,278
$
13,421,247
$
13,321,755
Liabilities and Stockholders' Equity
Deposits
$
10,232,442
$
10,177,023
$
10,066,342
$
9,994,017
Federal Home Loan Bank advances
938,687
891,021
1,072,611
789,337
Securities sold under agreements to repurchase with customers
61,490
65,132
60,567
80,000
Other borrowings
198,019
197,808
197,546
424,490
Advances by borrowers for taxes and insurance
18,759
28,789
23,031
25,168
Other liabilities
234,770
240,388
298,393
332,074
Total liabilities
11,684,167
11,600,161
11,718,490
11,645,086
Stockholders' equity:
OceanFirst Financial Corp. stockholders' equity
1,642,846
1,708,322
1,701,650
1,675,885
Non-controlling interest
834
795
1,107
784
Total stockholders' equity
1,643,680
1,709,117
1,702,757
1,676,669
Total liabilities and stockholders' equity
$
13,327,847
$
13,309,278
$
13,421,247
$
13,321,755
OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share amounts)
For the Three Months Ended,
For the Six Months Ended,
June 30,2025
March 31,2025
June 30,2024
June 30,2025
June 30,2024
|---------------------- (Unaudited) ----------------------|
|---------- (Unaudited) -----------|
Interest income:
Loans
$
135,478
$
133,019
$
136,049
$
268,497
$
273,170
Debt securities
15,950
17,270
19,039
33,220
38,900
Equity investments and other
3,397
3,414
4,338
6,811
8,958
Total interest income
154,825
153,703
159,426
308,528
321,028
Interest expense:
Deposits
52,273
51,046
60,071
103,319
119,926
Borrowed funds
14,916
16,005
17,092
30,921
32,615
Total interest expense
67,189
67,051
77,163
134,240
152,541
Net interest income
87,636
86,652
82,263
174,288
168,487
Provision for credit losses
3,039
5,340
3,114
8,379
3,705
Net interest income after provision for credit losses
84,597
81,312
79,149
165,909
164,782
Other income (loss):
Bankcard services revenue
1,619
1,463
1,571
3,082
2,987
Trust and asset management revenue
374
406
419
780
945
Fees and service charges
4,969
4,712
5,015
9,681
9,488
Net gain on sales of loans
1,177
858
420
2,035
777
Net gain on equity investments
488
205
887
693
2,810
Net loss from other real estate operations
(260
)
(16
)
—
(276
)
—
Income from bank owned life insurance
1,786
1,852
1,726
3,638
3,588
Commercial loan swap income
207
620
241
827
379
Other
1,373
1,153
706
2,526
2,297
Total other income
11,733
11,253
10,985
22,986
23,271
Operating expenses:
Compensation and employee benefits
40,242
36,740
33,136
76,982
65,895
Occupancy
5,454
5,497
5,175
10,951
10,374
Equipment
869
921
1,068
1,790
2,198
Marketing
1,541
1,108
1,175
2,649
2,165
Federal deposit insurance and regulatory assessments
2,898
2,983
2,685
5,881
5,820
Data processing
6,808
6,647
6,018
13,455
11,974
Check card processing
1,156
1,170
1,075
2,326
2,125
Professional fees
4,336
2,425
2,161
6,761
4,893
Amortization of intangibles
906
940
810
1,846
1,654
Other operating expenses
7,264
5,863
5,317
13,127
10,194
Total operating expenses
71,474
64,294
58,620
135,768
117,292
Income before provision for income taxes
24,856
28,271
31,514
53,127
70,761
Provision for income taxes
5,771
6,808
7,082
12,579
17,719
Net income
19,085
21,463
24,432
40,548
53,042
Net income (loss) attributable to non-controlling interest
39
(46
)
59
(7
)
2
Net income attributable to OceanFirst Financial Corp.
19,046
21,509
24,373
40,555
53,040
Dividends on preferred shares
1,004
1,004
1,004
2,008
2,008
Loss on redemption of preferred stock
1,842
—
—
1,842
—
Net income available to common stockholders
$
16,200
$
20,505
$
23,369
$
36,705
$
51,032
Basic earnings per share
$
0.28
$
0.35
$
0.40
$
0.63
$
0.87
Diluted earnings per share
$
0.28
$
0.35
$
0.40
$
0.63
$
0.87
Average basic shares outstanding
57,738
58,102
58,356
57,889
58,489
Average diluted shares outstanding
57,740
58,111
58,357
57,891
58,490
OceanFirst Financial Corp.SELECTED LOAN AND DEPOSIT DATA(dollars in thousands)
LOANS RECEIVABLE
At
June 30,2025
March 31,2025
December 31,2024
September 30,2024
June 30,2024
Commercial:
Commercial real estate - investor
$
5,068,125
$
5,200,137
$
5,287,683
$
5,273,159
$
5,324,994
Commercial and industrial:
Commercial and industrial - real estate
914,406
896,647
902,219
841,930
857,710
Commercial and industrial - non-real estate
862,504
748,575
647,945
660,879
616,400
Total commercial and industrial
1,776,910
1,645,222
1,550,164
1,502,809
1,474,110
Total commercial
6,845,035
6,845,359
6,837,847
6,775,968
6,799,104
Consumer:
Residential real estate
3,119,232
3,053,318
3,049,763
3,003,213
2,977,698
Home equity loans and lines and other consumer ("otherconsumer")
220,820
226,633
230,462
242,975
242,526
Total consumer
3,340,052
3,279,951
3,280,225
3,246,188
3,220,224
Total loans
10,185,087
10,125,310
10,118,072
10,022,156
10,019,328
Deferred origination costs (fees), net
13,960
11,560
10,964
10,508
10,628
Allowance for loan credit losses
(79,266
)
(78,798
)
(73,607
)
(69,066
)
(68,839
)
Loans receivable, net
$
10,119,781
$
10,058,072
$
10,055,429
$
9,963,598
$
9,961,117
Mortgage loans serviced for others
$
288,211
$
222,963
$
191,279
$
142,394
$
104,136
At June 30, 2025Average Yield
Loan pipeline (1):
Commercial
6.98
%
$
790,768
$
375,622
$
197,491
$
199,818
$
166,206
Residential real estate
6.51
146,921
116,121
97,385
137,978
