OceanFirst Financial Corp. reported its financial results for the quarter ending March 31, 2026, revealing a net income of $20.5 million, or $0.36 per diluted share, compared to $21.5 million, or $0.35 per diluted share, for the same period in 2025. The company's net interest income increased to $96.4 million from $86.7 million year-over-year, driven by a rise in average interest-earning assets and a slight increase in net interest margin to 2.93%. Total assets decreased marginally to $14.56 billion from $14.56 billion at the end of the previous quarter, while total loans rose to $11.12 billion, reflecting a 3% annualized growth rate.
In terms of operational metrics, OceanFirst experienced a 13% reduction in non-interest expenses, which fell to $73.4 million from $84.1 million in the previous quarter. The decrease was attributed to controlled spending and a reduction in merger-related expenses. The company also reported a loan-to-deposit ratio of 99.7%, down from 100.6% in the prior quarter, indicating a slight increase in deposits, which totaled $11.16 billion, up from $10.96 billion. The increase in deposits was primarily due to a rise in interest-bearing deposits.
The company’s asset quality remained stable, with non-performing loans increasing to $34.6 million, representing 0.31% of total loans, compared to 0.25% in the previous quarter. The allowance for loan credit losses as a percentage of total loans was 0.77%, slightly up from 0.76% at the end of December 2025. The company also reported a significant increase in special mention and substandard loans, which rose to $180.7 million from $122.1 million, primarily due to one commercial and industrial relationship that moved to substandard status.
Strategically, OceanFirst is preparing for the completion of its merger with Flushing Financial Corporation, which has received all necessary regulatory approvals. The merger is expected to close in the second quarter of 2026, pending the satisfaction of customary closing conditions. This merger is anticipated to enhance OceanFirst's market presence and operational capabilities across its service areas, which span from Massachusetts to Virginia. The company continues to maintain strong capital levels, with a common equity tier one capital ratio of 10.75%, exceeding regulatory requirements.
Looking ahead, OceanFirst Financial Corp. remains focused on managing its interest rate risk and optimizing its asset-liability management strategies. The company is also committed to enhancing its operational efficiency and expanding its market share through strategic initiatives, including the upcoming merger, which is expected to provide additional growth opportunities.
About OCEANFIRST FINANCIAL CORP
OceanFirst Financial Corp. is a regional bank holding company based in New Jersey, primarily engaged in originating and servicing commercial real estate, residential, and consumer loans. It funds its lending activities through deposits, securities, and borrowings, offering personalized banking services in its primary markets. The company emphasizes community involvement, risk management, and a diversified loan portfolio to deliver financial solutions and stability.
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