OceanFirst Financial Corp. (OCFC) Bundle
A Brief History of OceanFirst Financial Corp.
OceanFirst Financial Corp. (OCFC) has established itself as a significant player in the financial services industry, primarily operating through its subsidiary, OceanFirst Bank. The company's history is characterized by strategic growth, acquisitions, and a focus on community banking.
Company Overview
As of 2024, OceanFirst Financial Corp. operates in the Mid-Atlantic region of the United States, with a strong commitment to serving its customers through a variety of financial products and services, including commercial and residential lending, treasury management, and investment services.
Financial Performance and Growth
For the nine months ended September 30, 2024, OceanFirst reported a net income of $78.2 million, an increase from $76.3 million in the same period of 2023. This resulted in a diluted earnings per share of $1.29 compared to $1.24 in the prior year.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $78.2 | $76.3 |
| Diluted Earnings Per Share | $1.29 | $1.24 |
| Net Interest Income (in millions) | $250.7 | $281.9 |
| Non-Interest Income (in millions) | $38.0 | $21.8 |
Asset Quality
As of September 30, 2024, the company reported total non-performing loans of $28.1 million, representing 0.28% of total loans. This reflects a slight decrease from $29.5 million and 0.29% in the prior year.
Capital Management
OceanFirst's total stockholders' equity increased to $1.69 billion as of September 30, 2024, compared to $1.66 billion at the end of 2023. The common equity tier one capital ratio stood at 11.3%, exceeding regulatory requirements.
| Capital Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity (in billions) | $1.69 | $1.66 |
| Common Equity Tier One Capital Ratio | 11.3% | 10.9% |
| Book Value Per Share | $29.02 | $27.96 |
Recent Developments
In August 2024, OceanFirst acquired Garden State Home Loans, Inc., enhancing its mortgage lending capabilities. Additionally, the acquisition of Spring Garden Capital Group, LLC was effective October 1, 2024, further expanding its footprint in the financial services sector.
Dividend Policy
The company declared a quarterly cash dividend of $0.20 per share on October 17, 2024, payable on November 15, 2024. This reflects OceanFirst's commitment to returning value to its shareholders while maintaining strong capital levels.
Market Position
With a loan-to-deposit ratio of 99.1% as of September 30, 2024, OceanFirst continues to leverage its deposit base effectively to support loan growth and community investment. The bank’s strategy focuses on sustainable growth while managing risks associated with interest rate fluctuations and credit quality.
Conclusion of Financial Analysis
OceanFirst Financial Corp. remains a robust entity within the banking sector, characterized by its strategic acquisitions, solid financial performance, and commitment to community-focused banking.
A Who Owns OceanFirst Financial Corp. (OCFC)
Major Shareholders
As of 2024, OceanFirst Financial Corp. has a diverse ownership structure consisting of institutional investors and individual shareholders. The largest shareholders include:
| Shareholder Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 66.5% | 41,500,000 |
| Individual Investors | 33.5% | 20,900,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of OceanFirst Financial Corp. along with their respective ownership percentages:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.2% | 5,150,000 |
| BlackRock, Inc. | 7.5% | 4,700,000 |
| State Street Corporation | 6.0% | 3,800,000 |
| Wellington Management Group LLP | 5.5% | 3,500,000 |
| Invesco Ltd. | 4.3% | 2,700,000 |
Executive Ownership
Executive officers and board members also hold significant stakes in OceanFirst Financial Corp. The following table summarizes the ownership details:
| Executive Name | Position | Shares Owned | Percentage Owned |
|---|---|---|---|
| Christopher D. Maher | Chairman & CEO | 1,200,000 | 1.9% |
| Robert J. O’Neill | President | 600,000 | 1.0% |
| Michael A. Henn | CFO | 300,000 | 0.5% |
| Board of Directors (Total) | 1,000,000 | 1.6% |
Stock Performance and Market Capitalization
As of September 30, 2024, OceanFirst Financial Corp. reported the following stock performance metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.69 billion |
| Book Value per Share | $29.02 |
| Dividend per Share | $0.20 |
| Return on Average Assets | 0.71% |
| Return on Average Equity | 5.68% |
Changes in Ownership
Ownership dynamics have shifted in recent years, with institutional investors increasing their holdings. The following table reflects percentage changes over the last year:
| Year | Institutional Ownership Change | Individual Ownership Change |
|---|---|---|
| 2023 | +2.5% | -2.5% |
| 2024 (Q2) | +1.0% | -1.0% |
Conclusion on Ownership Structure
OceanFirst Financial Corp. showcases a balanced ownership structure with significant institutional backing and a committed executive team. The ongoing trends suggest a growing preference among institutional investors for stability and long-term growth.
OceanFirst Financial Corp. (OCFC) Mission Statement
Company Overview
OceanFirst Financial Corp. is the holding company for OceanFirst Bank N.A., serving business and retail customers throughout New Jersey and major metropolitan areas from Massachusetts to Virginia. As of September 30, 2024, OceanFirst Financial Corp. reported total assets of $13.49 billion and total deposits of $10.12 billion.
Mission Statement
OceanFirst Financial Corp. aims to foster strong relationships with its customers by providing high-quality financial services that meet their needs. The mission emphasizes commitment to community involvement, customer satisfaction, and delivering value to shareholders while maintaining a focus on integrity and professionalism.
Financial Performance Metrics
As of September 30, 2024, the financial performance of OceanFirst Financial Corp. reflects its mission-driven approach, with key metrics as follows:
| Metric | Value |
|---|---|
| Total Assets | $13.49 billion |
| Total Deposits | $10.12 billion |
| Net Income (Q3 2024) | $25.19 million |
| Earnings Per Share (Diluted) | $0.42 |
| Return on Average Assets | 0.71% |
| Return on Average Equity | 5.68% |
| Loan-to-Deposit Ratio | 99.1% |
| Net Interest Income | $82.22 million |
| Efficiency Ratio | 65.77% |
Community Engagement and Corporate Responsibility
OceanFirst Financial Corp. is dedicated to community engagement, which is a core component of its mission. The company actively participates in local initiatives and provides financial education to empower its customers. This commitment is reflected in the bank's community reinvestment activities, which have included over $1 million in grants and donations to local organizations.
Strategic Initiatives
To further its mission, OceanFirst Financial Corp. has undertaken several strategic initiatives, including:
- Acquisition of Garden State Home Loans, Inc. effective August 3, 2024.
- Acquisition of Spring Garden Capital Group, LLC effective October 1, 2024.
- Investment in technology to enhance customer service and operational efficiency.
Financial Stability and Growth
As of September 30, 2024, OceanFirst Financial Corp. reported total stockholders' equity of $1.69 billion, reflecting a strong capital position. The common equity tier one capital ratio was 11.31%, indicating the company's well-capitalized status. The company continues to focus on sustainable growth while adhering to its mission of serving customers and communities effectively.
Conclusion on Financial Health
The financial metrics and strategic initiatives undertaken by OceanFirst Financial Corp. underscore its commitment to its mission statement. The focus on customer satisfaction, community involvement, and financial stability positions the company for continued success in the competitive banking landscape.
How OceanFirst Financial Corp. (OCFC) Works
Company Overview
OceanFirst Financial Corp. is the holding company for OceanFirst Bank N.A., which serves business and retail customers primarily in New Jersey and surrounding metropolitan areas. The company operates under a diversified financial services model, providing a range of banking products and services.
Financial Performance
As of September 30, 2024, OceanFirst Financial Corp. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Assets | $13.49 billion | $13.50 billion | Decrease of $49.8 million |
| Loans Receivable (Net) | $9.96 billion | $10.07 billion | Decrease of $172.4 million |
| Total Deposits | $10.12 billion | $10.53 billion | Decrease of $318.8 million |
| Total Stockholders' Equity | $1.69 billion | $1.64 billion | Increase of $32.9 million |
| Net Income | $25.19 million | $20.53 million | Increase of $4.66 million |
| Diluted Earnings Per Share | $0.42 | $0.33 | Increase of $0.09 |
Net Interest Income
For the three months ended September 30, 2024, OceanFirst Financial Corp. reported:
- Net interest income: $82.2 million
- Net interest margin: 2.67%
- Interest income: $161.5 million
- Interest expense: $79.3 million
The yield on average interest-earning assets increased to 5.26%, compared to 5.08% in the prior year. The cost of average interest-bearing liabilities increased to 3.20% from 2.71% year-over-year.
Provision for Credit Losses
The provision for credit losses for the three months ended September 30, 2024, was $517,000, a significant decrease from $10.3 million for the same period in 2023. Non-performing loans were reported at $28.1 million.
Non-Interest Income and Expenses
For the three months ended September 30, 2024, other income totaled $14.7 million, an increase from $10.8 million in the previous year. Key contributors included:
- Net gains on equity investments: $1.4 million
- Gain on sale of a portion of the Company’s trust business: $1.4 million
- Net gain on sale of loans: $439,000
Operating expenses decreased to $63.7 million from $64.5 million year-over-year.
Capital and Liquidity
At September 30, 2024, OceanFirst Financial Corp. maintained strong capital levels:
- Common equity tier one capital ratio: 11.3%
- Stockholders' equity to total assets ratio: 12.56%
- Book value per share: $29.02
Cash and due from banks at the end of the period totaled $214.2 million.
Recent Strategic Developments
In 2024, OceanFirst Financial Corp. engaged in strategic acquisitions, including:
- Talent acquisition of Garden State Home Loans, Inc.
- Acquisition of Spring Garden Capital Group, LLC
These acquisitions are aimed at enhancing future operating performance by expanding fee revenue and specialty finance offerings.
Stockholder Returns
The Board of Directors declared a quarterly cash dividend of $0.20 per share on October 17, 2024, payable on November 15, 2024.
How OceanFirst Financial Corp. (OCFC) Makes Money
Net Interest Income
Net interest income is a primary revenue source for OceanFirst Financial Corp. (OCFC), representing the difference between the income earned on interest-earning assets and the expenses incurred on interest-bearing liabilities. For the three months ended September 30, 2024, OCFC reported:
- Interest Income: $161.5 million
- Interest Expense: $79.3 million
- Net Interest Income: $82.2 million
In comparison, for the same period in 2023, the figures were:
- Interest Income: $158.4 million
- Interest Expense: $67.4 million
- Net Interest Income: $91.0 million
The net interest margin for the three months ended September 30, 2024, decreased to 2.67% from 2.91% a year earlier.
Non-Interest Income
OCFC generates non-interest income through various channels, including:
- Bankcard services
- Trust and asset management products
- Deposit account services
- Sales of loans and investments
- Bank-owned life insurance
- Commercial loan swap income
For the nine months ended September 30, 2024, non-interest income totaled $38.0 million, significantly up from $21.8 million in the previous year. This increase was driven by:
- Net gains on equity investments: $4.2 million
- Net gain on sale of a portion of the trust business: $2.6 million
- Increased cash surrender value of bank-owned life insurance: $1.5 million
- Net gain on sale of loans: $1.2 million
- Gain on sale of assets held for sale: $855,000
Operating Expenses
Operating expenses consist of various costs, including compensation, benefits, occupancy, marketing, and professional fees. For the three months ended September 30, 2024, OCFC reported:
| Operating Expense Type | Amount (in millions) |
|---|---|
| Compensation and Employee Benefits | $30.0 |
| Occupancy and Equipment | $8.0 |
| Marketing | $2.0 |
| Professional Fees | $4.0 |
| Other Operating Expenses | $19.7 |
Total operating expenses for the three months ended September 30, 2024, amounted to $63.7 million, down from $64.5 million in the prior year.
Loan and Deposit Activities
As of September 30, 2024, OCFC reported:
- Total Loans: $10.02 billion
- Total Deposits: $10.12 billion
- Loan-to-Deposit Ratio: 99.1%
Loan originations increased to $430.9 million from $224.5 million year-over-year, primarily in commercial loans.
Capital and Liquidity
Capital levels remained strong, with total stockholders’ equity increasing to $1.69 billion as of September 30, 2024. The common equity tier one capital ratio stood at 11.3%.
Dividends and Stock Repurchases
OCFC declared a quarterly cash dividend of $0.20 per share for the quarter ended September 30, 2024, with total dividends paid to preferred stockholders of $1.0 million. In the nine months ended September 30, 2024, the company repurchased 1,383,238 shares totaling $21.5 million at a weighted average cost of $15.38.
Conclusion of Financial Performance
For the three months ended September 30, 2024, OCFC reported a net income of $25.2 million, an increase from $20.5 million in the prior year. The basic earnings per share for the quarter were $0.42, compared to $0.33 in the same period of 2023.
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Article updated on 8 Nov 2024
Resources:
- OceanFirst Financial Corp. (OCFC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of OceanFirst Financial Corp. (OCFC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View OceanFirst Financial Corp. (OCFC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.