OceanFirst Financial Corp. reported its financial results for the quarter and nine months ended September 30, 2024, showcasing a mix of growth in net income and challenges in net interest income and total loans.
For the third quarter of 2024, OceanFirst achieved a net income of $25.2 million, an increase from $20.5 million in the same period of 2023. This growth was reflected in diluted earnings per share, which rose to $0.42 from $0.33 year-over-year. For the nine months ended September 30, 2024, net income totaled $78.2 million, up from $76.3 million in the prior year.
Total assets as of September 30, 2024, stood at $13.49 billion, a slight decrease from $13.54 billion at the end of the previous quarter. Total stockholders' equity increased to $1.69 billion, compared to $1.66 billion in the prior quarter and $1.64 billion a year earlier. The company’s deposits rose to $10.12 billion, up from $10.00 billion in the previous quarter, although this represented a decline from $10.53 billion a year ago.
Net interest income for the third quarter was $82.2 million, down from $91.0 million in the same quarter of 2023. The decline was attributed to an increase in interest expense, which rose to $79.3 million from $67.4 million year-over-year. The net interest margin also decreased to 2.67% from 2.91% in the prior year. The loan-to-deposit ratio increased to 99.1%, reflecting a tighter lending environment.
The company reported a decrease in total loans, which fell by $172.4 million to $10.02 billion, primarily due to a $188.4 million reduction in the commercial loan portfolio. However, the loan pipeline increased by $168.6 million to $351.6 million, indicating potential future growth in lending.
Strategically, OceanFirst completed the acquisition of Spring Garden Capital Group, LLC on October 1, 2024, for $68 million, aimed at enhancing its specialty finance offerings. The company also incurred $1.7 million in merger-related expenses during the quarter.
In terms of asset quality, non-performing loans decreased to $28.1 million, representing 0.28% of total loans, down from $30.1 million a year earlier. The allowance for loan credit losses increased to $69.1 million, reflecting a proactive approach to managing credit risk.
Overall, OceanFirst Financial Corp. demonstrated resilience in its profitability metrics while navigating challenges in net interest income and loan growth, alongside strategic acquisitions to bolster its market position.
About OCEANFIRST FINANCIAL CORP
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