OceanFirst Financial Corp Reports Decrease in Net Income and ROA for Q4 2025

By Chris Stiles • Friday, January 23 03:26 • Permanent Link

OceanFirst Financial Corp. has reported its quarterly and annual financial results for the period ending December 31, 2025. The net income available to common stockholders was $13.1 million for the quarter, a decrease from $20.9 million for the same period in the prior year, and $17.3 million for the linked quarter. For the year ended December 31, 2025, the reported net income available to common stockholders was $67.1 million, a decrease from $96.0 million for the prior year.

Return on average assets for the quarter ended December 31, 2025, was 0.36%, a decrease from 0.61% for the same period in the prior year, and 0.49% for the linked quarter. For the year ended December 31, 2025, the return on average assets decreased to 0.49% from 0.71% for the prior year.

The return on average stockholders' equity for the quarter ended December 31, 2025, was 3.12%, a decrease from 4.88% for the same period in the prior year, and 4.00% for the linked quarter. For the year ended December 31, 2025, the return on average stockholders' equity decreased to 4.00% from 5.70% for the prior year.

Net interest income increased by $4.6 million, or 5%, to $95.3 million for the quarter ended December 31, 2025, representing a 20% annualized growth rate. Total loans increased by $474.0 million, representing an 18% annualized growth rate, primarily due to an increase in commercial loans. The company's capital remained strong with an estimated common equity tier one capital ratio of 10.7% as of December 31, 2025.

Provision for credit losses for the quarter and year ended December 31, 2025, was $3.7 million and $16.2 million, respectively, as compared to $3.5 million and $7.7 million for the corresponding prior year periods.

Operating expenses increased to $84.1 million for the quarter ended December 31, 2025, as compared to $64.8 million for the same period in the prior year. Excluding non-core operations, operating expenses increased by $6.5 million.

The board of directors declared its 116th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on February 13, 2026, to common stockholders of record on February 2, 2026. The market has reacted to these announcements by moving the company's shares -0.43% to a price of $18.33. For more information, read the company's full 8-K submission here.

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