OceanFirst Financial Corp. has reported a decrease in net income available to common stockholders to $16.2 million for the second quarter of 2025, down from $23.4 million in the same period last year. The diluted earnings per share also decreased from $0.40 to $0.28 for the corresponding prior year period and from $0.35 to $0.28 for the linked quarter. For the six months ended June 30, 2025, the company reported net income available to common stockholders of $36.7 million, a decrease from $51.0 million for the corresponding prior year period.
Return on average assets decreased from 0.70% to 0.49% for the three months ended June 30, 2025, and from 0.76% to 0.56% for the six months ended June 30, 2025, compared to the corresponding prior year period. Return on average stockholders’ equity also decreased from 5.61% to 3.86% for the three months ended June 30, 2025, and from 6.13% to 4.36% for the six months ended June 30, 2025, compared to the corresponding prior year period.
The company's core earnings for the three and six months ended June 30, 2025, were $17.7 million and $38.0 million, respectively, representing a decrease from $22.7 million and $48.3 million for the corresponding prior year periods. Core earnings before income taxes and provision for credit losses for the three and six months ended June 30, 2025, were $26.4 million and $58.8 million, compared to $32.7 million and $68.9 million for the corresponding prior year periods.
Total loans increased by $59.8 million, representing a 2% annualized growth rate, with $131.7 million of commercial and industrial loan growth. The commercial loan pipeline reached a record high of $790.8 million, which increased 111% from the linked quarter.
OceanFirst Financial Corp. repurchased 1,003,550 shares during the quarter and redeemed all of its preferred stock. Book value per share decreased $0.63 to $28.64, while tangible book value per share increased $0.18 to $19.34 as compared to the linked quarter.
The company's net interest income and margin increased, with net interest margin rising to 2.91% from 2.71% for the three months ended June 30, 2025, and to 2.91% from 2.76% for the six months ended June 30, 2025. However, average interest-earning assets decreased, and the average yield for interest-earning assets also decreased.
Provision for credit losses for the three and six months ended June 30, 2025, was $3.0 million and $8.4 million, respectively, as compared to $3.1 million and $3.7 million for the corresponding prior year periods, and $5.3 million for the linked quarter.
Operating expenses increased by $12.9 million to $71.5 million for the three months ended June 30, 2025, as compared to $58.6 million for the same period in the prior year, primarily driven by an increase in compensation and benefits.
The provision for income taxes was $5.8 million and $12.6 million for the three and six months ended June 30, 2025, as compared to $7.1 million and $17.7 million for the same prior year periods.
Total assets decreased by $93.4 million to $13.33 billion as of June 30, 2025, from $13.42 billion as of December 31, 2024, primarily due to decreases in total debt securities. Total loans increased by $67.0 million to $10.19 billion as of June 30, 2025, from $10.12 billion as of December 31, 2024. Following these announcements, the company's shares moved -1.32%, and are now trading at a price of $18.00. Check out the company's full 8-K submission here.
