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Jun 30, 2023
OceanFirst Q2 2023 Earnings Report
OceanFirst's financial performance decreased due to balance sheet measures to increase liquidity and preserve deposits.
Key Takeaways
OceanFirst Financial Corp. reported a net income available to common stockholders of $26.8 million, or $0.45 per diluted share, for the three months ended June 30, 2023. The results were impacted by prudent balance sheet measures to increase liquidity and preserve deposits.
Deposits increased $165.2 million during the quarter, including a shift from non-maturity deposits to time deposits.
Criticized assets, non-performing loans, and loans 30 to 89 days past due as a percent of total loans receivable were 1.18%, 0.23%, and 0.03%, respectively.
Net charge-off activity continues to remain at zero percent of total average loans on an annualized basis.
Common equity tier 1 capital increased 19 bps from the prior quarter, to 10.21%.
Forward Guidance
OceanFirst anticipates strategic initiatives and investments to improve operating expenses, with performance improvements expected as early as the fourth quarter.
Positive Outlook
- Strong balance sheet to catalyze strategic initiatives.
- Investments to improve operating expenses.
- Anticipated performance improvements as early as Q4.
- Initiatives expected to enhance returns in future periods.
- Optimistic that the pace of margin compression is behind us
Challenges Ahead
- Current quarter results were impacted by prudent balance sheet measures.
- Profitability decreased.
- Uncertain outlook should rates and competition remain elevated for longer.
- Net interest income and cost of funds were adversely impacted by shifts to higher cost time deposits.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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