Oceanfirst Financial Stock Earnings Reports

OceanFirst reported solid Q1 2026 results: GAAP EPS of $0.36 and core EPS of $0.43 (core +23% YoY). Net interest income grew for the fifth consecutive quarter (+1% linked quarter, +11% YoY) driven by $268 million average loan growth and NIM expansion to 2.93%. Total loans rose $92 million in the quarter (3% annualized) with $429 million of originations; C&I and CRE originations were notably strong (C&I growth +19% annualized linked quarter; closed C&I+CRE volume +81% YoY). Deposits grew $192 million (2%); excluding broker deposits, deposits rose $314 million. Asset quality remains strong: criticized/substandard loans at 1.5% of loans (below 10-year avg) and NPAs/nonperforming loans at 0.31%; net charge-offs were de minimis (~3 bps annualized). Operating expenses: GAAP $73M (including $4M merger costs) and core noninterest expense $69M (down $2.1M linked quarter) benefiting from outsourcing the residential lending platform and other cost actions. Capital: estimated CET1 ~10.7% and tangible book value per share $19.86. Dividend of $0.20 declared (117th consecutive quarter). Strategic items: merger with Flushing Financial and Warburg Pincus investment progressing — shareholder and most regulatory approvals obtained; only Federal Reserve approval remains with an expected close in Q2 2026 and systems integration/rebranding in Q3 2026. Management is investing in AI and IT modernization to improve operating leverage and scalability. Stand‑alone 2026 guidance (ex‑Flushing) reiterated: mid‑ to high‑single digit loan and deposit growth, NIM to surpass 3% in back half of the year, other income $7M–$9M/quarter, and core expenses ~$70M–$71M/quarter. Management expects modest near‑term credit migration tied largely to one commercial relationship and remains confident in asset quality and the merger model.