What guidance did OceanFirst's management provide for the next earnings period?

What does OceanFirst do and what are its main business segments?

What is the market's earnings forecast for OceanFirst next quarter?

What were the key takeaways from OceanFirst’s earnings call?

What were the key takeaways from OceanFirst's earnings call?

What is the revenue and EPS growth rate for OceanFirst year over year?

Did OceanFirst beat or miss consensus estimates last quarter?

What factors drove the changes in OceanFirst's revenue and profit?

- **Strong Q3 Growth**: 14% annualized loan growth ($373M) and 5% NIM stability despite higher debt costs.
- **Restructuring Benefits**: $10M annual expense savings from residential outsourcing, offsetting $4M revenue decline.
- **Premier Bank Momentum**: $128M deposits added, targeting $500M by year-end with 20% DDA mix.
- **2026 Outlook**: 7-9% loan/NII growth, 90+ bps ROA by Q4, 1%+ ROA in early 2027.
- **Credit Quality**: NPLs at 0.39%, criticized loans down 15%, best-in-class asset quality metrics.

**【CEO Summary Section】**
- Reported EPS of $0.30 (GAAP) and $0.36 (core), with net interest income up $3 million quarter-over-quarter.
- Total loans grew $373 million (14% annualized), driven by $1 billion in originations and a strong C&I pipeline.
- Asset quality remained strong with NPLs at 0.39% and criticized loans down 15% to $124 million.
- Restructuring charges of $4 million for residential outsourcing, with $10 million annualized expense savings starting Q1 2026.
- Dividend of $0.20 declared, 115th consecutive quarterly payout.

**【CFO Financial Commentary】**
- Net interest margin (NIM) stable at 2.91%, with 8bp loan yield increase offset by subordinated debt costs.
- Core pretax earnings up $4 million Q/Q, driven by earning asset growth.
- 2026 guidance: 7-9% loan growth, 7-9% NII growth, 90+ basis points ROA by Q4.
- Operating expenses expected to trend down to $70-71 million in Q4, with $8 million restructuring charges remaining.
- CET1 ratio at 10.6%, capital allocation focused on loan growth.

**【Q&A Key Highlights】**
- **NII Guidance**: 7-9% growth in 2026, with NIM crossing 3% in Q1-Q2 2026. Q4 2025 NIM may compress temporarily due to legacy deposit repricing.
- **Premier Bank**: Deposit growth of $128 million Q3, targeting $500 million by year-end. 20% DDA mix expected to improve as accounts mature.
- **Restructuring Impact**: $4 million annualized revenue decline from residential outsourcing, offset by $10 million expense savings.
- **Credit Exposure**: Minimal NDFI exposure ($100 million), focused on mission-critical contractors with strong liquidity.
- **ROA Target**: 1%+ achievable in early 2027, driven by loan growth and margin expansion.


OceanFirst Financial Corp. (OCFC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OCFC

OCFC fundamentals

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