- OceanFirst Financial Corp. (OCFC, Financial) reported Q1 2025 net income of $20.5 million, translating to $0.35 per diluted share.
- Net interest margin improved significantly, reaching 2.90% from 2.69% in the prior quarter.
- The commercial loan pipeline grew by 90%, amounting to $375.6 million.
OceanFirst Financial Corp. (OCFC) ended the first quarter of 2025 with a net income of $20.5 million, or $0.35 per diluted share, compared to $27.7 million ($0.47 per share) in the same period last year. While the earnings show a decline year-over-year, net interest margin saw a robust increase, rising to 2.90% from 2.69% in the linked quarter. This improvement in net interest margin was a key contributor to the $3.3 million increase in net interest income, bringing the total to $86.7 million.
Commercial and industrial loans also saw strong growth, expanding by $95.1 million, or 6.1%, quarter-over-quarter. Furthermore, the commercial loan pipeline surged by 90%, reaching $375.6 million, indicating promising prospects for continued growth. Total deposits rose by $110.7 million to $10.18 billion, contributing to the overall financial stability of the company.
The company maintained a strong capital position, with its common equity tier one capital ratio standing at 11.2%, supporting shareholder returns. OceanFirst declared its 113th consecutive quarterly cash dividend of $0.20 per share, payable on May 16, 2025. Additionally, the firm's asset quality remained stable, with a decrease in criticized and classified loans by 5%.
However, OceanFirst faced challenges with provisions for credit losses, which increased to $5.3 million amid macroeconomic uncertainties. Net loan charge-offs also rose to $636,000 from $349,000 year-over-year. Despite these hurdles, the firm's net interest income gains and loan portfolio growth underscore a cautiously optimistic outlook.
