OceanFirst Financial Corp. Reports Decrease in Net Income to $19.1 Million for Quarter Ending June 30, 2025

OceanFirst Financial Corp. reported its financial results for the quarter ending June 30, 2025, revealing a net income of $19.1 million, a decrease from $24.4 million in the same quarter of the previous year. This translates to diluted earnings per share of $0.28, down from $0.40 year-over-year. The company's net interest income increased to $87.6 million from $82.3 million, driven by a net interest margin of 2.91%, up from 2.71% in the prior year. However, total operating expenses rose significantly to $71.5 million, compared to $58.6 million in the same quarter last year, primarily due to increased compensation and benefits related to recent acquisitions and new hires.

In terms of asset quality, OceanFirst's total loans receivable increased to $10.12 billion, up from $10.05 billion at the end of the previous quarter. The company reported a provision for credit losses of $3.0 million for the quarter, slightly lower than the $3.1 million recorded in the same period last year. Non-performing loans decreased to $33.5 million, representing 0.33% of total loans, consistent with the previous quarter. The allowance for loan credit losses as a percentage of total loans receivable stood at 0.78%, up from 0.73% at the end of 2024.

Strategically, OceanFirst launched its Premier Banking initiative in mid-April 2025, which has already attracted approximately 200 new relationships and generated $115 million in new deposits. The company also repurchased 1,003,550 shares during the quarter and redeemed all of its preferred stock, resulting in a net loss on redemption of $1.8 million. The book value per share decreased to $28.64 from $29.27 in the previous quarter, reflecting the impact of these capital actions.

Operationally, total assets increased slightly to $13.33 billion from $13.31 billion in the previous quarter, while total deposits rose to $10.23 billion, up from $10.18 billion. The loan-to-deposit ratio was reported at 99.5%, down from 100.5% in the previous quarter. The company’s capital levels remain strong, with a common equity tier one capital ratio of 10.99%, despite a decline due to stock repurchases and increased lending commitments.

Looking ahead, OceanFirst Financial Corp. remains focused on managing its interest rate risk and enhancing its loan portfolio. The company is optimistic about the growth potential from its Premier Banking initiative and the ongoing demand for commercial loans, as evidenced by a record high commercial loan pipeline of $790.8 million. However, management acknowledges the challenges posed by fluctuating interest rates and economic conditions, which could impact future performance.