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Dec 31, 2019
OceanFirst Q4 2019 Earnings Report
OceanFirst reported net income of $23.5 million for Q4 2019.
Key Takeaways
OceanFirst Financial Corp. reported a net income of $23.5 million, or $0.47 per diluted share, for the quarter ended December 31, 2019. Loan and deposit growth were strong, with record loan originations of $504.4 million and deposit increases of $107.9 million. The company completed acquisitions of Two River Bancorp and Country Bank Holding Company on January 1, 2020, which significantly increased consolidated assets, loans, and deposits.
Net income was $23.5 million, or $0.47 per diluted share, for the quarter ended December 31, 2019.
Record loan originations of $504.4 million drove total loan growth of $124.5 million.
Deposits increased by $107.9 million during the quarter.
Completed acquisitions of Two River Bancorp and Country Bank Holding Company on January 1, 2020, boosting consolidated assets to $10.2 billion, loans to $7.8 billion, and deposits to $7.9 billion.
Forward Guidance
The company anticipates continued organic loan growth in 2020 and expects cost savings from the full integration of operations and the elimination of duplicate branches from the Two River and Country Bank acquisitions.
Positive Outlook
- Prospects for continued organic loan growth in 2020 are bright.
- Solid loan pipeline.
- Restructured contractual terms are expected to result in an annual cost savings of 48%, or approximately $1.6 million annually, beginning in January 2020.
- Full integration of operations and the elimination of eight duplicate branches in Two River’s market areas in May 2020, resulting in cost savings in future periods.
- Full integration of operations of Country Bank later in the year.
Challenges Ahead
- Changes in interest rates
- General economic conditions
- Levels of unemployment in the Bank’s lending area
Historical Earnings Impact
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