OceanFirst Financial Corp. reported its financial results for the first quarter of 2025, revealing a net income of $21.5 million, or $0.35 per diluted share, a decrease from $28.7 million, or $0.47 per diluted share, in the same period last year. The company's total assets stood at $13.31 billion, down from $13.42 billion at the end of the previous quarter. The decline in net income was attributed to a combination of lower interest income and increased provisions for credit losses, which rose to $5.3 million from $591,000 a year earlier, reflecting heightened uncertainty in the macroeconomic environment.
In terms of operational performance, OceanFirst's net interest income increased slightly to $86.7 million from $86.2 million in the prior quarter, driven by a 21 basis point increase in net interest margin to 2.90%. This improvement was primarily due to a reduction in the total cost of deposits, which fell to 2.06% from 2.31%. The company also reported a 6.1% increase in commercial and industrial loans, amounting to $95.1 million, and a significant increase in the commercial loan pipeline, which surged 90% to $375.6 million.
The bank's total deposits increased by $110.7 million to $10.18 billion, with notable growth in non-interest-bearing and time deposits. However, the loan-to-deposit ratio slightly decreased to 99.5% from 100.5%. The company’s asset quality metrics remained stable, with non-performing loans as a percentage of total loans rising marginally to 0.37% from 0.35%. The allowance for loan credit losses increased to 0.78% of total loans, up from 0.73% in the previous quarter, indicating a cautious approach to potential credit risks.
Looking ahead, OceanFirst Financial Corp. plans to continue focusing on its strategic initiatives, including enhancing its commercial lending capabilities and managing its interest rate risk through various hedging strategies. The company has also announced a quarterly cash dividend of $0.20 per share, which will be paid on May 16, 2025, to shareholders of record as of May 5, 2025. The board of directors has indicated intentions to redeem all outstanding shares of its Series A Preferred Stock on May 15, 2025, further reflecting its commitment to optimizing its capital structure.
About OCEANFIRST FINANCIAL CORP
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