Loading...
OceanFirst Q1 2025 Earnings Report
OceanFirst Financial Corp. reported a decrease in net income and diluted EPS for the first quarter of 2025 compared to the prior year, while core earnings and net interest margin showed improvement.
Key Takeaways
OceanFirst Financial Corp. announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025. This represents a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period. Core earnings for the quarter were $20.3 million, or $0.35 per diluted share, showing a decrease from $25.6 million in the prior year period. Net interest income increased to $86.7 million, and net interest margin expanded to 2.90%.
Net income available to common stockholders decreased to $20.5 million ($0.35 per diluted share) from $27.7 million ($0.47 per diluted share) in the prior year.
Core earnings were $20.3 million ($0.35 per diluted share), down from $25.6 million in the prior year period.
Net interest income increased by $3.3 million to $86.7 million, and net interest margin expanded to 2.90% from 2.69% in the linked quarter.
Provision for credit losses increased to $5.3 million, reflecting a net loan reserve build of $5.2 million due to elevated macroeconomic uncertainty.
OceanFirst
OceanFirst
OceanFirst Revenue by Segment
Revenue by Segment
Loans Revenue
CapyFin.comDebt Securities, Equity Investments & Other Revenue
CapyFin.com Forward Guidance
The Company is confident in its well-positioned status despite increased market uncertainty and volatility, focusing on continued expansion of net interest income and margin, strong asset quality, and capital accretion.
Positive Outlook
- Meaningful expansion of net interest income and net interest margin.
- Continued strong asset quality metrics, with criticized and classified loans decreasing.
- Further capital accretion, including share repurchases.
- Successful talent recruiting season, adding 36 highly experienced commercial bankers.
- Declaration of 113th consecutive quarterly cash dividend on common stock.
Challenges Ahead
- Elevated uncertainty around macroeconomic conditions leading to increased provision for credit losses.
- Decrease in average interest earning assets and liabilities.
- Decrease in other income due to non-core operations compared to prior year.
- Increase in operating expenses primarily due to compensation and benefits from acquisitions and merit increases.
- Net loan charge-offs increased compared to the prior year period.