Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

OceanFirst Financial Corp. Announces Second Quarter Financial Results

RED BANK, N.J., July 18, 2024 (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 $23.4 million, or $0.40 per diluted share, for the three months ended June 30, 2024, a decrease from $26.8 million, or $0.45 per diluted share, for the corresponding prior year period, and $27.7 million, or $0.47 per diluted share, for the prior linked quarter. For the six months ended June 30, 2024, the Company reported net income available to common stockholders of $51.0 million, or $0.87 per diluted share, a decrease from $53.7 million, or $0.91 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, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Return on average assets0.70% 0.82% 0.80% 0.76% 0.81%
Return on average stockholders’ equity5.61  6.65  6.61  6.13  6.69 
Return on average tangible stockholders’ equity (a)8.10  9.61  9.70  8.86  9.84 
Return on average tangible common equity (a)8.51  10.09  10.21  9.30  10.37 
Efficiency ratio62.86  59.56  62.28  61.17  61.53 
Net interest margin2.71  2.81  3.02  2.76  3.17 

(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

Core earnings1 for the three and six months ended June 30, 2024 were $22.7 million and $48.3 million, respectively, or $0.39 and $0.83 per diluted share, a decrease from $27.2 million and $59.9 million, or $0.46 and $1.01 per diluted share, for the corresponding prior year periods, and a decrease from $25.6 million, or $0.44 per diluted share, for the prior linked quarter.

Core earnings PTPP1 for the three and six months ended June 30, 2024 was $32.7 million and $68.9 million, respectively, or $0.56 and $1.18 per diluted share, as compared to $37.6 million and $83.7 million, or $0.64 and $1.42 per diluted share, for the corresponding prior year periods, and $36.2 million, or $0.62 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:

 For the Three Months Ended, For the Six Months Ended,
 June 30, March 31, June 30, June 30, June 30,
Core Ratios1 (Annualized): 2024   2024   2023   2024   2023 
Return on average assets 0.68%  0.76%  0.81%  0.72%  0.90%
Return on average tangible stockholders’ equity 7.86   8.91   9.84   8.38   10.98 
Return on average tangible common equity 8.26   9.36   10.36   8.81   11.56 
Efficiency ratio 63.47   61.05   61.94   62.24   59.13 
Core diluted earnings per share$0.39  $0.44  $0.46  $0.83  $1.01 
Core PTPP diluted earnings per share 0.56   0.62   0.64   1.18   1.42 
                    

Key developments for the recent quarter are described below:

  • Asset Quality: Asset quality metrics remain strong as criticized and classified assets, non-performing loans, and loans 30 to 89 days past due as a percentage of total loans receivable were 1.42%, 0.33%, and 0.10%, respectively. These metrics continue to reflect strong credit performance and remain low compared to pre-pandemic levels.
  • Capital Accretion: Common equity tier 1 capital ratio2, book value and tangible book value per share were 11.2%, $28.67 and $18.93, respectively, and increased approximately 20 basis points, $0.35 and $0.30 from the prior linked quarter.3
  • Share repurchases: The Company repurchased 338,087 shares totaling $5.0 million. The Company has 1,638,524 shares available for repurchase under the authorized repurchase program.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “Our current quarter results reflected prudent balance sheet management and expense discipline. As rates are elevated and the yield curve remains inverted, net interest margin compressed during the quarter, but the pace of margin compression is slowing. Additionally, our credit quality continues to remain robust, we grew capital, and continued share repurchases during the quarter.” Mr. Maher added, “The Company is well positioned to bolster shareholder value through growth in the second half of the year.”

The Company’s Board of Directors declared its 110th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on August 16, 2024 to common stockholders of record on August 5, 2024. The Company’s Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on August 15, 2024 to preferred stockholders of record on July 31, 2024.

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 branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (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. 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.

Estimated.
3 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.

Results of Operations

The current quarter net interest income and margin were impacted by a mix-shift to and repricing of higher cost funding. Deposit betas increased modestly to 42%, from 40% in the prior linked quarter.4 Additionally, the current quarter provision for credit losses includes the impact of an additional $1.6 million charge-off on the single commercial real estate relationship that was previously moved to non-accrual and partially charged-off in 2023. The collateral related to the noted credit is currently under an agreement to sell, which is expected to occur during the third quarter.

4 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021).

Net Interest Income and Margin

Three months ended June 30, 2024 vs. June 30, 2023

Net interest income decreased to $82.3 million, from $92.1 million, primarily reflecting the net impact of the higher interest rate environment.

Net interest margin decreased to 2.71%, from 3.02%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05%, respectively. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets.

Average interest-earning assets decreased by $46.3 million due to balance sheet contraction while the average yield for interest-earning assets increased to 5.25%, from 4.91%.

The cost of average interest-bearing liabilities increased to 3.14%, from 2.39%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 1.52%. Average interest-bearing liabilities increased by $149.6 million, primarily due to an increase in total deposits, partly offset by a decrease in total borrowings.

Six months ended June 30, 2024 vs. June 30, 2023

Net interest income decreased to $168.5 million, from $190.9 million, reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.76%, from 3.17%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.

Average interest-earning assets increased by $146.4 million, primarily driven by securities growth of $135.4 million, while the average yield increased to 5.25%, from 4.80%.

The cost of average interest-bearing liabilities increased to 3.09%, from 2.08%. The total cost of deposits (including non-interest bearing deposits) increased to 2.34%, from 1.21%. Average interest-bearing liabilities increased by $392.0 million. The drivers for the three month periods, described above, were also the drivers for the six month periods.

Three months ended June 30, 2024 vs. March 31, 2024

Net interest income decreased by $4.0 million, primarily due to an increase in cost of funds and lower average-interest earning assets. Net interest margin decreased to 2.71%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.04% for both periods.

Average interest-earning assets decreased by $146.6 million, primarily due to a decrease in loans. The yield on average interest-earning assets decreased to 5.25%, from 5.26%.

The total cost of average interest-bearing liabilities increased to 3.14%, from 3.03%, primarily due to higher cost of deposits. Total cost of deposits (including non-interest bearing deposits) increased to 2.37%, from 2.31%. Average interest-bearing liabilities decreased by $129.4 million, primarily due to decreases in brokered time deposits and high yield savings accounts, partly offset by an increase in borrowings.

Provision for Credit Losses

Provision for credit losses for the three and six months ended June 30, 2024 was $3.1 million and $3.7 million, respectively, as compared to $1.2 million and $4.2 million for the corresponding prior year periods, and $591,000 in the prior linked quarter. The current quarter provision was driven by the additional charge-off previously noted and changes in the external macro-economic forecasts, partly offset by lower loan balances.

Net loan charge-offs were $1.5 million and $1.8 million for the three and six months ended June 30, 2024, respectively, as compared to net loan charge-offs of $123,000 and $76,000 for the three and six months ended June 30, 2023. The current quarter includes the impact of an additional $1.6 million charge-off related to a single commercial real estate relationship, as previously noted. Net loan charge-offs were $349,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.

Non-interest Income

Three months ended June 30, 2024 vs. June 30, 2023

Other income increased to $11.0 million, as compared to $8.9 million. Other income was favorably impacted by non-core operations related to net gains/losses on equity investments of $887,000 for the current quarter, and adversely impacted by non-core operations of $559,000 for the prior year quarter.

Excluding non-core operations, other income increased by $611,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $544,000 and net gain on sale of loans of $387,000, partially offset by a decrease in fees and service charges of $587,000 on lower title activity and retail deposit fees.

Six months ended June 30, 2024 vs. June 30, 2023

Other income increased to $23.3 million, as compared to $11.0 million. The current period 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. The prior year was adversely impacted by non-core operations of $8.1 million, primarily related to losses on sale of investments.

Excluding non-core operations, other income increased by $241,000, primarily driven by increases in the cash surrender value of bank owned life insurance of $1.1 million, which included one-time death benefits in the current period, and net gain on sale of loans of $724,000. This was partially offset by a decrease in fees and service charges of $1.3 million, which was driven by the same factors as noted above.

Three months ended June 30, 2024 vs. March 31, 2024

Other income in the prior linked quarter was $12.3 million and was favorably impacted by non-core operations of $3.1 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 $897,000, primarily due to an increase in fees and service charges of $542,000, which was driven by higher title activity.

Non-interest Expense

Three months ended June 30, 2024 vs. June 30, 2023

Operating expenses decreased $4.3 million to $58.6 million, from $62.9 million. The primary drivers were decreases in professional fees of $2.9 million and compensation and employee benefits expenses of $1.1 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.

Six months ended June 30, 2024 vs. June 30, 2023

Operating expenses decreased to $117.3 million, as compared to $124.2 million. Operating expenses were adversely impacted by an FDIC special assessment in the current year of $418,000, and merger related and net branch consolidation expenses of $92,000 in the prior year period.

Excluding non-core operations, operating expenses decreased by $7.3 million. The primary drivers were decreases in professional fees of $5.3 million and compensation and employee benefits expenses of $2.2 million, which reflect the net realization of the Company’s performance improvements initiatives and strategic investments made over the past year.

Three months ended June 30, 2024 vs. March 31, 2024

Operating expenses in the prior linked quarter were $58.7 million and included non-core operations of $418,000, related to an FDIC special assessment. Excluding non-core operations, operating expenses increased by $366,000.

Income Tax Expense

The provision for income taxes was $7.1 million and $17.7 million for the three and six months ended June 30, 2024, respectively, as compared to $9.0 million and $17.7 million for the same prior year periods, and $10.6 million for the prior linked quarter. The effective tax rate was 22.5% and 25.0% for the three and six months ended June 30, 2024, respectively, as compared to 24.4% and 24.0% for the same prior year periods, and 27.1% for the prior linked quarter. The prior linked quarter and current year’s effective tax rates were negatively impacted by 3.0% and 1.6%, respectively, due to a non-recurring write-off of a deferred tax asset of $1.2 million.

Financial Condition

June 30, 2024 vs. December 31, 2023

Total assets decreased by $216.5 million to $13.32 billion, from $13.54 billion, primarily due to decreases in loans and debt securities. Total loans decreased by $175.3 million to $10.02 billion, from $10.19 billion, primarily due to a decrease in the total commercial portfolio of $165.3 million driven by loan payoffs and lower loan originations. The loan pipeline increased by $76.1 million to $259.1 million from $183.0 million. Held-to-maturity debt securities decreased by $53.9 million to $1.11 billion, from $1.16 billion, primarily due to principal repayments. Debt securities available-for-sale decreased $32.4 million to $721.5 million, from $753.9 million, primarily due to principal reductions and maturities. Other assets increased by $23.3 million to $203.0 million, from $179.7 million, primarily due to an increase in the market values of derivatives associated with customer interest rate swap programs.

Total liabilities decreased by $231.2 million to $11.65 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $440.9 million to $9.99 billion, from $10.43 billion, primarily due to decreases in high-yield savings accounts of $283.1 million and interest bearing deposits of $243.9 million. Time deposits decreased to $2.37 billion, from $2.45 billion, representing 23.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits which decreased by $229.9 million, offset by increases in retail time deposits of $161.7 million. The loan-to-deposit ratio was 100.3%, as compared to 97.7%. Federal Home Loan Bank (“FHLB”) advances decreased by $59.3 million to $789.3 million, from $848.6 million due to a mix shift in funding sources to other borrowings, which increased by $228.0 million to $424.5 million, from $196.5 million, as a result of lower cost funding availability.

Other liabilities increased by $31.4 million to $332.1 million, from $300.7 million, primarily due to an increase 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, 2024, including the Company’s estimated common equity tier one capital ratio which increased to 11.2%, up approximately 35 basis points from December 31, 2023.

Total stockholders’ equity increased to $1.68 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of share repurchases and dividends. For the six months ended June 30, 2024, the Company repurchased 1,295,914 shares totaling $20.1 million representing a weighted average cost of $15.35. The Company had 1,638,524 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $3.7 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company actively monitors its goodwill as the challenging economic environment persists and continues to pressure the Company’s stock price and industry valuations. The Company customarily performs its annual goodwill impairment assessment during the third quarter.

The Company’s tangible common equity3 increased by $11.6 million to $1.11 billion. The Company’s stockholders’ equity to assets ratio was 12.59% at June 30, 2024, and tangible common equity to tangible assets ratio increased by 26 basis points during the quarter to 8.64%, primarily due to the drivers described above.

Book value per common share increased to $28.67, as compared to $27.96. Tangible book value per common share3 increased to $18.93, as compared to $18.35.

Asset Quality

June 30, 2024 vs. December 31, 2023

Overall asset quality metrics remained stable. The Company’s non-performing loans increased to $33.4 million from $29.5 million and represented 0.33% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 205.97%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $9.7 million, from $19.2 million. Criticized and classified assets decreased to $142.6 million, from $146.9 million. The Company’s allowance for loan credit losses was 0.69% of total loans, as compared to 0.66%. 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 increased to $30.6 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 225.10%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $8.5 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $75.0 million, or 0.75% of total loans, as compared to $74.7 million, or 0.73% of total loans.

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 19, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 619002. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 217614, from one hour after the end of the call until August 16, 2024. 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, 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 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 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 effect of the Company’s rating under the Community Reinvestment Act, 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, 2023, 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, March 31, December 31, June 30,
  2024 2024 2023 2023
  (Unaudited) (Unaudited)   (Unaudited)
Assets        
Cash and due from banks $181,198 $130,422 $153,718 $457,747
Debt securities available-for-sale, at estimated fair value  721,484  744,944  753,892  452,016
Debt securities held-to-maturity, net of allowance for securities credit losses of $958 at June 30, 2024, $1,058 at March 31, 2024, $1,133 at December 31, 2023 and $964 at June 30, 2023 (estimated fair value of $1,003,850 at June 30, 2024, $1,029,965 at March 31, 2024, $1,068,438 at December 31, 2023 and $1,109,756 at June 30, 2023)  1,105,843  1,128,666  1,159,735  1,222,507
Equity investments  104,132  103,201  100,163  96,452
Restricted equity investments, at cost  92,679  85,689  93,766  105,305
Loans receivable, net of allowance for loan credit losses of $68,839 at June 30, 2024, $67,173 at March 31, 2024, $67,137 at December 31, 2023 and $61,791 at June 30, 2023  9,961,117  10,068,209  10,136,721  10,030,106
Loans held-for-sale  2,062  4,702  5,166  4,200
Interest and dividends receivable  50,976  52,502  51,874  47,933
Premises and equipment, net  117,392  119,211  121,372  124,139
Bank owned life insurance  267,867  266,615  266,498  263,836
Assets held for sale  28  28  28  3,608
Goodwill  506,146  506,146  506,146  506,146
Core deposit intangible  7,859  8,669  9,513  11,476
Other assets  202,972  199,974  179,661  213,432
Total assets $13,321,755 $13,418,978 $13,538,253 $13,538,903
Liabilities and Stockholders’ Equity        
Deposits $9,994,017 $10,236,851 $10,434,949 $10,158,337
Federal Home Loan Bank advances  789,337  658,436  848,636  1,091,666
Securities sold under agreements to repurchase with customers  80,000  66,798  73,148  74,452
Other borrowings  424,490  425,722  196,456  195,925
Advances by borrowers for taxes and insurance  25,168  28,187  22,407  27,839
Other liabilities  332,074  337,147  300,712  364,401
Total liabilities  11,645,086  11,753,141  11,876,308  11,912,620
Stockholders’ equity:        
OceanFirst Financial Corp. stockholders’ equity  1,675,885  1,665,112  1,661,163  1,625,435
Non-controlling interest  784  725  782  848
Total stockholders’ equity  1,676,669  1,665,837  1,661,945  1,626,283
Total liabilities and stockholders’ equity $13,321,755 $13,418,978 $13,538,253 $13,538,903


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, March 31, June 30, June 30, June 30,
  2024  2024   2023  2024  2023 
  |---------------------- (Unaudited) ----------------------| |---------- (Unaudited) -----------|
Interest income:          
Loans $136,049 $137,121  $129,104  $273,170 $250,824 
Debt securities  19,039  19,861   14,320   38,900  28,606 
Equity investments and other  4,338  4,620   6,672   8,958  9,700 
Total interest income  159,426  161,602   150,096   321,028  289,130 
Interest expense:          
Deposits  60,071  59,855   37,934   119,926  59,264 
Borrowed funds  17,092  15,523   20,053   32,615  38,955 
Total interest expense  77,163  75,378   57,987   152,541  98,219 
Net interest income  82,263  86,224   92,109   168,487  190,911 
Provision for credit losses  3,114  591   1,229   3,705  4,242 
Net interest income after provision for credit losses  79,149  85,633   90,880   164,782  186,669 
Other income:          
Bankcard services revenue  1,571  1,416   1,544   2,987  2,874 
Trust and asset management revenue  419  526   645   945  1,257 
Fees and service charges  5,015  4,473   5,602   9,488  10,761 
Net gain on sales of loans  420  357   33   777  53 
Net gain (loss) on equity investments  887  1,923   (559)  2,810  (7,360)
Income from bank owned life insurance  1,726  1,862   1,182   3,588  2,463 
Commercial loan swap income  241  138      379  701 
Other  706  1,591   481   2,297  252 
Total other income  10,985  12,286   8,928   23,271  11,001 
Operating expenses:          
Compensation and employee benefits  33,136  32,759   34,222   65,895  68,142 
Occupancy  5,175  5,199   5,265   10,374  10,504 
Equipment  1,068  1,130   1,101   2,198  2,306 
Marketing  1,175  990   961   2,165  1,943 
Federal deposit insurance and regulatory assessments  2,685  3,135   2,465   5,820  4,214 
Data processing  6,018  5,956   6,165   11,974  12,319 
Check card processing  1,075  1,050   1,214   2,125  2,495 
Professional fees  2,161  2,732   5,083   4,893  10,181 
Amortization of core deposit intangible  810  844   994   1,654  2,021 
Branch consolidation expense, net            70 
Merger related expenses            22 
Other operating expense  5,317  4,877   5,460   10,194  10,022 
Total operating expenses  58,620  58,672   62,930   117,292  124,239 
Income before provision for income taxes  31,514  39,247   36,878   70,761  73,431 
Provision for income taxes  7,082  10,637   8,996   17,719  17,650 
Net income  24,432  28,610   27,882   53,042  55,781 
Net income (loss) attributable to non-controlling interest  59  (57)  85   2  101 
Net income attributable to OceanFirst Financial Corp.  24,373  28,667   27,797   53,040  55,680 
Dividends on preferred shares  1,004  1,004   1,004   2,008  2,008 
Net income available to common stockholders $23,369 $27,663  $26,793  $51,032 $53,672 
Basic earnings per share $0.40 $0.47  $0.45  $0.87 $0.91 
Diluted earnings per share $0.40 $0.47  $0.45  $0.87 $0.91 
Average basic shares outstanding  58,356  58,789   59,147   58,489  58,988 
Average diluted shares outstanding  58,357  58,791   59,153   58,490  59,038 


OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
 
LOANS RECEIVABLE  At
   June 30, March 31, December 31, September 30, June 30,
    2024   2024   2023   2023   2023 
Commercial:           
Commercial real estate - investor  $5,324,994  $5,322,755  $5,353,974  $5,334,279  $5,319,686 
Commercial real estate - owner-occupied  857,710   914,582   943,891   957,216   981,618 
Commercial and industrial   616,400   677,176   666,532   652,119   620,284 
Total commercial   6,799,104   6,914,513   6,964,397   6,943,614   6,921,588 
Consumer:           
Residential real estate   2,977,698   2,965,276   2,979,534   2,928,259   2,906,556 
Home equity loans and lines and other consumer ("other consumer")  242,526   245,859   250,664   251,698   255,486 
Total consumer   3,220,224   3,211,135   3,230,198   3,179,957   3,162,042 
Total loans   10,019,328   10,125,648   10,194,595   10,123,571   10,083,630 
Deferred origination costs (fees), net  10,628   9,734   9,263   8,462   8,267 
Allowance for loan credit losses   (68,839)  (67,173)  (67,137)  (63,877)  (61,791)
Loans receivable, net  $9,961,117  $10,068,209  $10,136,721  $10,068,156  $10,030,106 
Mortgage loans serviced for others $104,136  $89,555  $68,217  $52,796  $50,820 
 At June 30, 2024 Average Yield          
Loan pipeline (1):           
Commercial7.88% $166,206  $66,167  $124,707  $50,756  $39,164 
Residential real estate6.96   80,330   57,340   49,499   66,682   58,022 
Other consumer8.81   12,586   13,030   8,819   13,795   18,621 
Total7.64% $259,122  $136,537  $183,025  $131,233  $115,807 


 For the Three Months Ended
 June 30, March 31, December 31, September 30, June 30,
 2024 2024 2023 2023 2023
 Average Yield          
Loan originations:           
Commercial7.98% $56,053 $123,010 $94,294 $90,263 $197,732
Residential real estate6.74   121,388  78,270  113,227  92,299  100,542
Other consumer8.99   16,970  11,405  16,971  17,019  22,487
Total7.29% $194,411 $212,685 $224,492 $199,581 $320,761
Loans sold  $45,045 $29,965 $20,138 $15,404 $18,664

(1) Loan pipeline includes loans approved but not funded.

DEPOSITSAt
 June 30, March 31, December 31, September 30, June 30,
 2024 2024 2023 2023 2023
Type of Account         
Non-interest-bearing$1,632,521 $1,639,828 $1,657,119 $1,827,381 $1,854,136
Interest-bearing checking 3,667,837  3,865,699  3,911,766  3,708,874  3,537,834
Money market 1,210,312  1,150,979  1,021,805  860,025  770,440
Savings 1,115,688  1,260,309  1,398,837  1,484,000  1,229,897
Time deposits (1) 2,367,659  2,320,036  2,445,422  2,653,649  2,766,030
Total deposits$9,994,017 $10,236,851 $10,434,949 $10,533,929 $10,158,337


(1) Includes brokered time deposits of $401.6 million, $543.4 million, $631.5 million, $995.5 million, and $1.42 billion at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.


OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
 
ASSET QUALITY (1)
June 30, March 31, December 31, September 30, June 30,
 2024   2024   2023   2023   2023 
Non-performing loans:         
Commercial real estate - investor$19,761  $21,507  $20,820  $20,723  $13,000 
Commercial real estate - owner-occupied 4,081   3,355   351   240   565 
Commercial and industrial 434   567   304   1,120   199 
Residential real estate 7,213   7,181   5,542   5,624   6,174 
Other consumer 1,933   2,401   2,531   2,391   2,820 
Total non-performing loans$33,422  $35,011  $29,548  $30,098  $22,758 
Delinquent loans 30 to 89 days$9,655  $17,534  $19,202  $20,591  $3,136 
Modifications to borrowers experiencing financial difficulty (2)         
Non-performing (included in total non-performing loans above)$8,677  $9,075  $6,420  $6,679  $6,882 
Performing 27,184   15,619   15,361   7,645   7,516 
Total modifications to borrowers experiencing financial difficulty (2)$35,861  $24,694  $21,781  $14,324  $14,398 
Allowance for loan credit losses$68,839  $67,173  $67,137  $63,877  $61,791 
Allowance for loan credit losses as a percent of total loans receivable (3) 0.69%  0.66%  0.66%  0.63%  0.61%
Allowance for loan credit losses as a percent of total non-performing loans (3) 205.97   191.86   227.21   212.23   271.51 
Non-performing loans as a percent of total loans receivable 0.33   0.35   0.29   0.30   0.23 
Non-performing assets as a percent of total assets 0.25   0.26   0.22   0.22   0.17 
Supplemental PCD and non-performing loans         
PCD loans, net of allowance for loan credit losses$16,058  $16,700  $16,122  $18,640  $18,872 
Non-performing PCD loans 2,841   3,525   3,183   3,177   3,171 
Delinquent PCD and non-performing loans 30 to 89 days 1,188   2,088   1,516   13,007   1,976 
PCD modifications to borrowers experiencing financial difficulty (2) 759   764   771   750   755 
Asset quality, excluding PCD loans (4)         
Non-performing loans 30,581   31,486   26,365   26,921   19,587 
Delinquent loans 30 to 89 days (excludes non-performing loans) 8,467   15,446   17,686   7,584   1,160 
Modifications to borrowers experiencing financial difficulty (2) 35,102   23,930   21,010   13,574   13,643 
Allowance for loan credit losses as a percent of total non-performing loans (3) 225.10%  213.34%  254.64%  237.28%  315.47%
Non-performing loans as a percent of total loans receivable 0.31   0.31   0.26   0.27   0.19 
Non-performing assets as a percent of total assets 0.23   0.23   0.19   0.20   0.14 


(1)At June 30, 2024, non-performing loans included the remaining exposure of $7.2 million on the single commercial real estate relationship discussed in “Results of Operations”.
(2)Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
(3)Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $6.1 million, $7.0 million, $7.5 million, $8.8 million and $9.8 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023 and June 30, 2023, respectively.
(4)All balances and ratios exclude PCD loans.


NET LOAN CHARGE-OFFSFor the Three Months Ended
 June 30, March 31, December 31, September 30, June 30,
  2024   2024   2023   2023   2023 
Net loan charge-offs:         
Loan charge-offs (1)$(1,600) $(441) $(98) $(8,379) $(206)
Recoveries on loans 148   92   63   108   83 
Net loan charge-offs$(1,452) $(349) $(35) $(8,271) $(123)
Net loan charge-offs to average total loans (annualized) 0.06%  0.01%  %  0.33%  %
Net loan charge-offs detail:         
Commercial$(1,576) $(35) $9  $(8,332) $(117)
Residential real estate 87   66   9   17   9 
Other consumer 37   (380)  (53)  44   (15)
Net loan charge-offs$(1,452) $(349) $(35) $(8,271) $(123)

(1) The three months ended June 30, 2024 and September 30, 2023 includes charge-offs related to a single commercial real estate relationship of $1.6 million and $8.4 million, respectively.


OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
  
 For the Three Months Ended
 June 30, 2024 March 31, 2024 June 30, 2023
(dollars in thousands)Average
Balance
 Interest Average
Yield/
Cost (1)
 Average
Balance
 Interest Average
Yield/
Cost (1)
 Average
Balance
 Interest Average
Yield/
Cost (1)
Assets:                 
Interest-earning assets:                 
Interest-earning deposits and short-term investments$132,574  $1,770 5.37% $163,192  $2,226 5.49% $308,238  $4,283 5.57%
Securities (2) 2,058,711   21,607 4.22   2,098,421   22,255 4.27   1,931,032   16,709 3.47 
Loans receivable, net (3)                 
Commercial 6,845,988   102,620 6.03   6,925,048   104,421 6.06   6,912,698   99,350 5.76 
Residential real estate 2,978,749   29,072 3.90   2,974,468   28,596 3.85   2,895,629   25,936 3.58 
Other consumer 246,024   4,357 7.12   248,396   4,104 6.65   255,785   3,818 5.99 
Allowance for loan credit losses, net of deferred loan costs and fees (58,270)      (59,141)      (53,327)    
Loans receivable, net 10,012,491   136,049 5.46   10,088,771   137,121 5.46   10,010,785   129,104 5.17 
Total interest-earning assets 12,203,776   159,426 5.25   12,350,384   161,602 5.26   12,250,055   150,096 4.91 
Non-interest-earning assets 1,237,442       1,206,336       1,217,666     
Total assets$13,441,218      $13,556,720      $13,467,721     
Liabilities and Stockholders’ Equity:                 
Interest-bearing liabilities:                 
Interest-bearing checking$3,862,060   21,043 2.19% $3,925,965   20,795 2.13% $3,718,289   11,964 1.29%
Money market 1,183,429   10,482 3.56   1,092,003   9,172 3.38   694,311   3,678 2.12 
Savings 1,164,203   2,604 0.90   1,355,718   4,462 1.32   1,248,312   389 0.12 
Time deposits 2,337,458   25,942 4.46   2,414,063   25,426 4.24   2,458,872   21,903 3.57 
Total 8,547,150   60,071 2.83   8,787,749   59,855 2.74   8,119,784   37,934 1.87 
FHLB Advances 711,801   8,746 4.94   644,818   7,771 4.85   1,246,914   15,406 4.96 
Securities sold under agreements to repurchase 72,305   478 2.66   68,500   411 2.41   71,752   192 1.07 
Other borrowings (4) 541,266   7,868 5.85   500,901   7,341 5.89   284,460   4,455 6.28 
Total borrowings 1,325,372   17,092 5.19   1,214,219   15,523 5.14   1,603,126   20,053 5.02 
Total interest-bearing liabilities 9,872,522   77,163 3.14   10,001,968   75,378 3.03   9,722,910   57,987 2.39 
Non-interest-bearing deposits 1,626,165       1,634,583       1,873,226     
Non-interest-bearing liabilities(4) 268,078       247,129       244,892     
Total liabilities 11,766,765       11,883,680       11,841,028     
Stockholders’ equity 1,674,453       1,673,040       1,626,693     
Total liabilities and equity$13,441,218      $13,556,720      $13,467,721     
Net interest income  $82,263     $86,224     $92,109  
Net interest rate spread (5)    2.11%     2.23%     2.52%
Net interest margin (6)    2.71%     2.81%     3.02%
Total cost of deposits (including non-interest-bearing deposits)    2.37%     2.31%     1.52%


 For the Six Months Ended June 30,
  2024   2023 
(dollars in thousands)Average
Balance
 Interest Average
Yield/
Cost (1)
 Average
Balance
 Interest Average
Yield/
Cost (1)
Assets:           
Interest-earning assets:           
Interest-earning deposits and short-term investments$147,883  $3,995 5.43% $219,482  $5,221 4.80%
Securities (2) 2,078,566   43,863 4.24   1,943,148   33,085 3.43 
Loans receivable, net (3)           
Commercial 6,885,518   207,041 6.05   6,876,553   192,130 5.63 
Residential real estate 2,976,608   57,668 3.87   2,883,904   51,097 3.54 
Other consumer 247,210   8,461 6.88   259,573   7,597 5.90 
Allowance for loan credit losses, net of deferred loan costs and fees (58,705)      (51,948)    
Loans receivable, net 10,050,631   273,170 5.46   9,968,082   250,824 5.07 
Total interest-earning assets 12,277,080   321,028 5.25   12,130,712   289,130 4.80 
Non-interest-earning assets 1,221,889       1,226,061     
Total assets$13,498,969      $13,356,773     
Liabilities and Stockholders’ Equity:           
Interest-bearing liabilities:           
Interest-bearing checking$3,894,013   41,838 2.16% $3,790,413   18,234 0.97%
Money market 1,137,716   19,653 3.47   699,940   5,437 1.57 
Savings 1,259,960   7,066 1.13   1,308,381   723 0.11 
Time deposits 2,375,760   51,369 4.35   2,144,514   34,870 3.28 
Total 8,667,449   119,926 2.78   7,943,248   59,264 1.50 
FHLB Advances 678,309   16,517 4.90   1,234,919   29,824 4.87 
Securities sold under agreements to repurchase 70,403   889 2.54   71,825   282 0.79 
Other borrowings (4) 521,084   15,209 5.87   295,248   8,849 6.04 
Total borrowings 1,269,796   32,615 5.17   1,601,992   38,955 4.90 
Total interest-bearing liabilities 9,937,245   152,541 3.09   9,545,240   98,219 2.08 
Non-interest-bearing deposits 1,630,374       1,950,437     
Non-interest-bearing liabilities (4) 257,603       242,864     
Total liabilities 11,825,222       11,738,541     
Stockholders’ equity 1,673,747       1,618,232     
Total liabilities and equity$13,498,969      $13,356,773     
Net interest income  $168,487     $190,911  
Net interest rate spread (5)    2.16%     2.72%
Net interest margin (6)    2.76%     3.17%
Total cost of deposits (including non-interest-bearing deposits)    2.34%     1.21%


(1)Average yields and costs are annualized.
(2)Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3)Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4)For the three and six months ended June 30, 2023, includes reclassifications to conform with current period presentation. 
(5)Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6)Net interest margin represents net interest income divided by average interest-earning assets. 


OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
 
  June 30, March 31, December 31, September 30, June 30,
   2024  2024  2023  2023  2023
Selected Financial Condition Data:          
Total assets $13,321,755 $13,418,978 $13,538,253 $13,498,183 $13,538,903
Debt securities available-for-sale, at estimated fair value  721,484  744,944  753,892  453,208  452,016
Debt securities held-to-maturity, net of allowance for securities credit losses  1,105,843  1,128,666  1,159,735  1,189,339  1,222,507
Equity investments  104,132  103,201  100,163  97,908  96,452
Restricted equity investments, at cost  92,679  85,689  93,766  82,484  105,305
Loans receivable, net of allowance for loan credit losses  9,961,117  10,068,209  10,136,721  10,068,156  10,030,106
Deposits  9,994,017  10,236,851  10,434,949  10,533,929  10,158,337
Federal Home Loan Bank advances  789,337  658,436  848,636  606,056  1,091,666
Securities sold under agreements to repurchase and other borrowings  504,490  492,520  269,604  279,164  270,377
Total stockholders’ equity  1,676,669  1,665,837  1,661,945  1,637,604  1,626,283


  For the Three Months Ended,
  June 30, March 31, December 31, September 30, June 30,
  2024  2024  2023  2023   2023 
Selected Operating Data:          
Interest income $159,426 $161,602  $160,434 $158,410  $150,096 
Interest expense  77,163  75,378   72,610  67,414   57,987 
Net interest income  82,263  86,224   87,824  90,996   92,109 
Provision for credit losses  3,114  591   3,153  10,283   1,229 
Net interest income after provision for credit losses  79,149  85,633   84,671  80,713   90,880 
Other income (excluding activity related to debt and equity investments and sale of trust business)  10,098  9,201   9,685  9,310   9,487 
Net gain (loss) on equity investments  887  1,923   2,176  1,452   (559)
Net gain on sale of trust business    1,162         
Operating expenses (excluding FDIC special assessment)  58,620  58,254   58,526  64,484   62,930 
FDIC special assessment    418   1,663      
Income before provision for income taxes  31,514  39,247   36,343  26,991   36,878 
Provision for income taxes  7,082  10,637   8,591  6,459   8,996 
Net income  24,432  28,610   27,752  20,532   27,882 
Net income (loss) attributable to non-controlling interest  59  (57)  70  (135)  85 
Net income attributable to OceanFirst Financial Corp. $24,373 $28,667  $27,682 $20,667  $27,797 
Net income available to common stockholders $23,369 $27,663  $26,678 $19,663  $26,793 
Diluted earnings per share $0.40 $0.47  $0.46 $0.33  $0.45 
Net accretion/amortization of purchase accounting adjustments included in net interest income $1,086 $921  $1,604 $1,745  $1,152 


  At or For the Three Months Ended
  June 30, March 31, December 31, September 30, June 30,
  2024 2024 2023 2023 2023
Selected Financial Ratios and Other Data(1) (2):          
Performance Ratios (Annualized):          
Return on average assets (3) 0.70% 0.82% 0.78% 0.57% 0.80%
Return on average tangible assets (3) (4) 0.73  0.85  0.81  0.59  0.83 
Return on average stockholders’ equity (3) 5.61  6.65  6.41  4.75  6.61 
Return on average tangible stockholders’ equity (3) (4) 8.10  9.61  9.33  6.93  9.70 
Return on average tangible common equity (3) (4) 8.51  10.09  9.81  7.29  10.21 
Stockholders’ equity to total assets 12.59  12.41  12.28  12.13  12.01 
Tangible stockholders’ equity to tangible assets (4)  9.08  8.92  8.80  8.64  8.51 
Tangible common equity to tangible assets (4)  8.64  8.49  8.38  8.21  8.09 
Net interest rate spread 2.11  2.23  2.25  2.37  2.52 
Net interest margin 2.71  2.81  2.82  2.91  3.02 
Operating expenses to average assets 1.75  1.74  1.76  1.88  1.87 
Efficiency ratio (5) 62.86  59.56  60.38  63.37  62.28 
Loan-to-deposit ratio 100.30  98.90  97.70  96.10  99.30 


  For the Six Months Ended June 30,
  2024 2023
Performance Ratios (Annualized):    
Return on average assets (3) 0.76% 0.81%
Return on average tangible assets (3) (4) 0.79  0.84 
Return on average stockholders’ equity (3)  6.13  6.69 
Return on average tangible stockholders’ equity (3) (4)  8.86  9.84 
Return on average tangible common equity (3) (4)  9.30  10.37 
Net interest rate spread 2.16  2.70 
Net interest margin 2.76  3.17 
Operating expenses to average assets 1.75  1.88 
Efficiency ratio (5) 61.17  61.53 


  At or For the Three Months Ended
  June 30, March 31, December 31, September 30, June 30,
   2024   2024   2023   2023   2023 
Trust and Asset Management:          
Wealth assets under administration and management (“AUA/M”) $150,519  $236,891  $335,769  $336,913  $339,890 
Nest Egg AUA/M  403,647   407,478   401,420   385,317   397,927 
Total AUA/M  554,166   644,369   737,189   722,230   737,817 
Per Share Data:          
Cash dividends per common share $0.20  $0.20  $0.20  $0.20  $0.20 
Book value per common share at end of period  28.67   28.32   27.96   27.56   27.37 
Tangible book value per common share at end of period (4)   18.93   18.63   18.35   17.93   17.72 
Common shares outstanding at end of period  58,481,418   58,812,498   59,447,684   59,421,498   59,420,859 
Preferred shares outstanding at end of period  57,370   57,370   57,370   57,370   57,370 
Number of full-service customer facilities:  39   39   39   38   38 
Quarterly Average Balances          
Total securities $2,058,711  $2,098,421  $1,863,136  $1,873,450  $1,931,032 
Loans receivable, net  10,012,491   10,088,771   10,089,161   10,040,522   10,010,785 
Total interest-earning assets  12,203,776   12,350,384   12,349,140   12,384,797   12,250,055 
Total goodwill and core deposit intangible  514,535   515,356   516,289   517,282   518,265 
Total assets  13,441,218   13,556,720   13,593,107   13,637,213   13,467,721 
Time deposits  2,337,458   2,414,063   2,596,706   2,867,921   2,458,872 
Total deposits (including non-interest-bearing deposits)  10,173,315   10,422,332   10,633,516   10,626,159   9,993,010 
Total borrowings  1,325,372   1,214,219   1,016,722   1,095,173   1,603,126 
Total interest-bearing liabilities  9,872,522   10,001,968   9,910,739   9,880,134   9,722,910 
Non-interest bearing deposits  1,626,165   1,634,583   1,739,499   1,841,198   1,873,226 
Stockholders' equity  1,674,453   1,673,040   1,650,699   1,642,899   1,626,693 
Tangible stockholders’ equity (4)  1,159,918   1,157,684   1,134,410   1,125,617   1,108,428 
           
Quarterly Yields and Costs          
Total securities  4.22%  4.27%  3.81%  3.82%  3.47%
Loans receivable, net  5.46   5.46   5.40   5.30   5.17 
Total interest-earning assets  5.25   5.26   5.16   5.08   4.91 
Time deposits  4.46   4.24   4.13   4.06   3.57 
Total cost of deposits (including non-interest-bearing deposits)  2.37   2.31   2.22   1.99   1.52 
Total borrowed funds  5.19   5.14   5.13   5.12   5.02 
Total interest-bearing liabilities  3.14   3.03   2.91   2.71   2.39 
Net interest spread  2.11   2.23   2.25   2.37   2.52 
Net interest margin  2.71   2.81   2.82   2.91   3.02 


(1)With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)Ratios for each period are based on net income available to common stockholders.
(4)Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.


OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)
 
NON-GAAP RECONCILIATION
  For the Three Months Ended
  June 30, March 31, December 31, September 30, June 30,
   2024   2024   2023   2023   2023 
Core Earnings:          
Net income available to common stockholders (GAAP) $23,369  $27,663  $26,678  $19,663  $26,793 
(Less) add non-recurring and non-core items:          
Net (gain) loss on equity investments  (887)  (1,923)  (2,176)  (1,452)  559 
Net gain on sale of trust business     (1,162)         
FDIC special assessment     418   1,663       
Income tax expense (benefit) on items  188   642   129   351   (162)
Core earnings (Non-GAAP) $22,670  $25,638  $26,294  $18,562  $27,190 
Income tax expense $7,082  $10,637  $8,591  $6,459  $8,996 
Provision for credit losses  3,114   591   3,153   10,283   1,229 
Less: income tax expense (benefit) on non-core items  188   642   129   351   (162)
Core earnings PTPP (Non-GAAP) $32,678  $36,224  $37,909  $34,953  $37,577 
Core earnings diluted earnings per share $0.39  $0.44  $0.45  $0.32  $0.46 
Core earnings PTPP diluted earnings per share $0.56  $0.62  $0.65  $0.59  $0.64 
           
Core Ratios (Annualized):          
Return on average assets  0.68%  0.76%  0.77%  0.54%  0.81%
Return on average tangible stockholders’ equity  7.86   8.91   9.20   6.54   9.84 
Return on average tangible common equity  8.26   9.36   9.67   6.88   10.36 
Efficiency ratio  63.47   61.05   60.02   64.29   61.94 


  For the Six Months Ended June 30,
   2024   2023 
Core Earnings:    
Net income available to common stockholders (GAAP) $51,032  $53,672 
Add (less) non-recurring and non-core items:    
Net (gain) loss on equity investments(1)  (2,810)  2,752 
Net loss on sale of investments(1)     5,305 
Net gain on sale of trust business  (1,162)   
FDIC special assessment  418    
Merger related expenses     22 
Branch consolidation expense, net     70 
Income tax expense (benefit) on items  830   (1,959)
Core earnings (Non-GAAP) $48,308  $59,862 
Income tax expense $17,719  $17,650 
Provision for credit losses  3,705   4,242 
Less: income tax expense (benefit) on non-core items  830   (1,959)
Core earnings PTPP (Non-GAAP) $68,902  $83,713 
Core diluted earnings per share $0.83  $1.01 
Core earnings PTPP diluted earnings per share $1.18  $1.42 
     
Core Ratios (Annualized):    
Return on average assets  0.72%  0.90%
Return on average tangible stockholders’ equity  8.38   10.98 
Return on average tangible common equity  8.81   11.56 
Efficiency ratio  62.24   59.13 


(1)The sale of specific positions in two financial institutions impacted both equity investments and debt securities for the three months ended March 31, 2023. On the Consolidated Statements of Income, the losses on sale of equity investments and debt securities are reported within net gain (loss) on equity investments ($4.6 million) and other ($697,000), respectively, for the three months ended March 31, 2023.


  June 30, March 31, December 31, September 30, June 30,
   2024   2024   2023   2023   2023 
Tangible Equity:          
Total stockholders' equity $1,676,669  $1,665,837  $1,661,945  $1,637,604  $1,626,283 
Less:          
Goodwill  506,146   506,146   506,146   506,146   506,146 
Core deposit intangible  7,859   8,669   9,513   10,489   11,476 
Tangible stockholders' equity  1,162,664   1,151,022   1,146,286   1,120,969   1,108,661 
Less:          
Preferred stock  55,527   55,527   55,527   55,527   55,527 
Tangible common equity $1,107,137  $1,095,495  $1,090,759  $1,065,442  $1,053,134 
           
Tangible Assets:           
Total assets $13,321,755  $13,418,978  $13,538,253  $13,498,183  $13,538,903 
Less:          
Goodwill  506,146   506,146   506,146   506,146   506,146 
Core deposit intangible  7,859   8,669   9,513   10,489   11,476 
Tangible assets $12,807,750  $12,904,163  $13,022,594  $12,981,548  $13,021,281 
           
Tangible stockholders' equity to tangible assets  9.08%  8.92%  8.80%  8.64%  8.51%
Tangible common equity to tangible assets  8.64%  8.49%  8.38%  8.21%  8.09%


Company Contact:

Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com


Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.