OceanFirst Financial Corp. Reports Decrease in Total Assets and Net Income for 2024

OceanFirst Financial Corp. reported a decrease in total assets to $13.42 billion as of December 31, 2024, down from $13.54 billion in the previous year. This decline was primarily attributed to a reduction in loans and securities, with total loans decreasing by $76.5 million to $10.12 billion. The commercial loan portfolio saw a significant drop of $126.6 million, largely due to loan payoffs, although this was partially offset by a $70.2 million increase in residential loans. Interest income for the year rose to $642.2 million, compared to $608.0 million in 2023, driven by higher yields on interest-earning assets, while interest expense also increased significantly to $308.1 million from $238.2 million, reflecting the rising cost of deposits.

The company's net income available to common stockholders decreased to $96.0 million, or $1.65 per diluted share, from $100.0 million, or $1.70 per diluted share, in the prior year. This year's net income included a provision for credit losses of $7.7 million, which was lower than the $17.7 million recorded in 2023. The decrease in net income was influenced by various factors, including a special FDIC assessment charge of $418,000 and merger-related expenses of $1.8 million. The company also completed the acquisition of Spring Garden Capital Group on October 1, 2024, for a total consideration of $162.7 million, which is expected to enhance its specialty finance offerings.

Operationally, OceanFirst Financial Corp. maintained a strong capital position, with a common equity tier one capital ratio of 11.17% as of December 31, 2024, indicating compliance with regulatory capital requirements. The company’s stockholders’ equity increased to $1.70 billion, up from $1.66 billion, reflecting net income and share repurchases totaling $21.5 million during the year. The total deposits decreased by $368.6 million to $10.07 billion, primarily due to a planned runoff of brokered time deposits, although retail time deposits increased by $203.5 million.

In terms of strategic developments, the company has focused on diversifying its deposit base and expanding its commercial banking business, particularly in the Philadelphia, New York, Boston, and Baltimore markets. The company’s loan portfolio composition as of December 31, 2024 included 67.4% in commercial loans, with a notable emphasis on commercial and industrial lending. The company continues to enhance its operational efficiency through investments in technology and customer service, aiming to improve its competitive position against larger financial institutions.

Looking ahead, OceanFirst Financial Corp. anticipates continued challenges from the economic environment, including inflation and interest rate fluctuations, which could impact its profitability and loan performance. The company remains committed to prudent growth strategies, including potential acquisitions, while managing its credit and operational risks effectively. The management's outlook emphasizes maintaining a strong capital position and enhancing customer relationships to drive future growth.