OceanFirst Financial Corp. (NASDAQ:OCFC) has reported a decrease in net income available to common stockholders for the quarter ended March 31, 2025, with figures at $20.5 million, or $0.35 per diluted share. This marks a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter.
In terms of performance ratios for the three months ended March 31, 2025, return on average assets was reported at 0.62%, compared to 0.61% for the same period in 2024, and 0.82% for the same period in 2024. Return on average stockholders’ equity was 4.85% for March 2025, 4.88% for December 2024, and 6.65% for March 2024. Return on average tangible stockholders’ equity and return on average tangible common equity also experienced decreases when compared to the prior year period and the linked quarter.
Core earnings for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, marking a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter. Core earnings before income taxes and provision for credit losses (PTPP) for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter.
Key developments for the recent quarter include margin expansion, with the net interest margin increasing 21 basis points to 2.90%, from 2.69%, and net interest income increasing by $3.3 million to $86.7 million. The commercial and industrial loans also saw an increase of $95.1 million, or 6.1% as compared to the linked quarter.
The provision for credit losses was $5.3 million, reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the company’s loan portfolio.
The company’s board of directors declared its 113th consecutive quarterly cash dividend on common stock, and the company has notified the preferred stockholders that it intends to redeem the series A preferred stock in full on May 15, 2025.
In terms of financial condition, total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion, primarily related to a funding mix-shift. Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the company’s estimated common equity tier one capital ratio which remained at 11.2%. Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases.
During the quarter ended March 31, 2025, the company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The company had 1,228,863 shares available for repurchase under the authorized repurchase program. Accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.
Today the company's shares have moved 0.9% to a price of $16.5. Check out the company's full 8-K submission here.
