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1. Company Snapshot

1.a. Company Description

OceanFirst Financial Corp.operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services.It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing demand deposits, and time deposits to retail, government, and business customers.


The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans.In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments.Further, the company offers bankcard, wealth management, and trust and asset management services; and sells alternative investment products and life insurance products.


As of December 31, 2021, it operated through its branch office in Toms River; administrative office located in Red Bank and Mount Laurel; 46 additional branch offices and four deposit production facilities located throughout central and southern New Jersey; and commercial loan production offices in New Jersey, New York City, the Philadelphia area, Baltimore, and Boston.The company was founded in 1902 and is based in Red Bank, New Jersey.

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1.b. Last Insights on OCFC

OceanFirst Financial Corp.'s recent performance was positively driven by its announced 2025 Stock Repurchase Program, authorizing the repurchase of up to 3 million shares, or approximately 5% of its outstanding common stock. This move demonstrates the company's commitment to enhancing shareholder value. Additionally, the company's Q2 earnings call highlighted its solid loan and deposit growth, with a focus on its core banking business. Despite missing Q2 earnings and revenue estimates, the company's efforts to manage expenses and improve asset quality are underway.

1.c. Company Highlights

2. OceanFirst Financial Corp.'s Q3 2025 Earnings: A Strong Performance

OceanFirst Financial Corp.'s third-quarter 2025 earnings per share were $0.36 on a core basis, beating estimates of $0.34. Net interest income increased by $3 million from the prior quarter, fueled by a $242 million increase in average net loans, and the net interest margin remained stable at 2.91%. Total loans grew by $373 million, representing a 14% annualized growth rate driven by $1 billion in originations. The company's operating expenses were $76 million, including $4 million in restructuring charges related to outsourcing residential loan originations and underwriting functions.

Publication Date: Oct -28

📋 Highlights
  • EPS Growth:: Q3 2025 core EPS of $0.36 vs. GAAP $0.30, driven by $3M net interest income increase and $242M higher average loans.
  • Loan Expansion:: Total loans grew $373M (14% annualized) with $1B in originations, while classified loans fell 15% to $124M (1.2% of total).
  • Cost Restructuring:: $4M restructuring charges offset $10M pretax benefit from residential mortgage outsourcing, netting $14M in expense savings.
  • Future Guidance:: 7–9% loan growth in 2026, NIM above 3% by mid-2026, and $19.52 tangible book value per share with $0.20 dividend approved.
  • Deposit Strategy:: Targeting 30% demand deposit mix (currently 20%) and $3B+ deposit milestones by 2027, aligned with loan growth and operational efficiencies.

Loan Growth and Asset Quality

The company's total loans classified as special mention and substandard decreased 15% to $124 million or 1.2% of total loans, indicating strong asset quality. The company's tangible book value per share was $19.52, and the Board approved a quarterly cash dividend of $0.20 per common share. The Premier Bank acquisition has been successful, with $85 million in loan originations, and the company expects to see more activity in commercial real estate and commercial and industrial lending.

Guidance and Outlook

The company expects 7% to 9% annualized loan growth in 2026, with deposits growing in line with loans, and net interest income growth in line with or exceeding a high single-digit growth rate. The company anticipates a NIM trajectory above 3% by mid-2026 and an annualized return on average assets of 90-plus basis points by the fourth quarter of 2026. For 2026, the company expects operating expenses between $275 million and $285 million and other income between $25 million and $35 million.

Valuation

With a Price-to-Tangible Book Value (P/TBV) of approximately 0.64, which is relatively reasonable, and a Dividend Yield of 4.3%, the stock appears to offer an attractive income stream. The company's guidance suggests a strong outlook, with expectations of achieving a 1% return on assets (ROA) by the end of next year or early 2027. Analysts estimate next year's revenue growth at 10.7%, indicating a positive trajectory.

3. NewsRoom

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Geode Capital Management LLC Has $24.81 Million Position in OceanFirst Financial Corp. $OCFC

Nov -29

Source: defenseworld.net

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Bank of New York Mellon Corp Has $7.01 Million Stock Holdings in OceanFirst Financial Corp. $OCFC

Nov -22

Source: defenseworld.net

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OceanFirst Financial Corp. Announces Pricing of Subordinated Notes Offering

Oct -27

Source: globenewswire.com

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

Oct -23

Source: seekingalpha.com

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OceanFirst (OCFC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -23

Source: zacks.com

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OceanFirst Financial (OCFC) Tops Q3 Earnings and Revenue Estimates

Oct -22

Source: zacks.com

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OceanFirst Financial Corp. Announces Third Quarter Financial Results

Oct -22

Source: globenewswire.com

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OceanFirst Financial Corp. Schedules Earnings Conference Call

Oct -02

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Community Banking

Expected Growth: 7.4%

OceanFirst Financial Corp.'s 7.4% growth in Community Banking is driven by strategic acquisitions, expanded commercial lending, and increased deposit growth. Additionally, investments in digital banking and customer experience have enhanced customer retention and attraction. A strong local economy, fueled by tourism and small business growth, has also contributed to the segment's growth.

7. Detailed Products

Commercial Loans

OceanFirst Financial Corp. offers a range of commercial loans to help businesses grow and thrive, including term loans, lines of credit, and construction loans.

Residential Mortgages

OceanFirst Financial Corp. offers a variety of residential mortgage products, including fixed-rate and adjustable-rate mortgages, to help individuals and families achieve their dream of homeownership.

Consumer Loans

OceanFirst Financial Corp. offers personal loans, auto loans, and home equity loans to help individuals and families achieve their financial goals.

Deposit Accounts

OceanFirst Financial Corp. offers a range of deposit accounts, including checking, savings, and money market accounts, to help individuals and businesses manage their finances.

Wealth Management

OceanFirst Financial Corp. offers a range of wealth management services, including investment management, retirement planning, and estate planning, to help individuals and families achieve their long-term financial goals.

Cash Management

OceanFirst Financial Corp. offers cash management services, including treasury management, account reconciliation, and wire transfer services, to help businesses optimize their cash flow and streamline their financial operations.

8. OceanFirst Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

OceanFirst Financial Corp. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

OceanFirst Financial Corp. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often tailored to meet the specific needs of its customers, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

OceanFirst Financial Corp. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company also has a strong procurement process in place, which helps to mitigate the risk of supplier concentration.

Threat Of New Entrants

The banking industry is heavily regulated, which creates barriers to entry for new entrants. Additionally, OceanFirst Financial Corp. has a strong brand and established customer relationships, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. OceanFirst Financial Corp. operates in a crowded market, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.30%
Debt Cost 7.54%
Equity Weight 59.70%
Equity Cost 8.95%
WACC 8.38%
Leverage 67.50%

11. Quality Control: OceanFirst Financial Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.7

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Momentum: 5.0

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Growth: 4.0

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Yield: 6.0

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Camden National

A-Score: 5.5/10

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Growth: 5.1

Quality: 4.1

Yield: 8.0

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Volatility: 7.0

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OceanFirst

A-Score: 5.4/10

Value: 4.8

Growth: 4.8

Quality: 4.6

Yield: 8.0

Momentum: 4.0

Volatility: 6.3

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A-Score: 5.4/10

Value: 9.1

Growth: 4.2

Quality: 4.2

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Momentum: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.33$

Current Price

19.33$

Potential

-0.00%

Expected Cash-Flows