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Oceanfirst Financial
(NASDAQ:OCFC)
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Rating:67Neutral
Price Target:
$21.50
▲(9.92% Upside)
Action:Reiterated
Date:07/31/26
OCFC scores in the upper-mid range primarily due to mixed financial performance (strong TTM revenue rebound and solid cash conversion offset by materially compressed margins and low ROE) and a constructive earnings-call outlook for NIM/expense improvement post-merger. Valuation is supportive with a ~4.07% dividend yield and mid-teens P/E, while the technical picture is mildly positive (price above key moving averages) but lacks confirmation from missing momentum indicators.
Positive Factors
Scale and Deposit Base Expansion
The Flushing merger materially increases franchise scale and core funding, adding substantial low-cost deposits and branching density. That enlarged deposit base and geographic reach support durable net interest income, cross-sell opportunities and faster realization of operating leverage over 2–6 months.
Negative Factors
Weakened Profitability and Low ROE
Subdued return on equity and compressed margins signal that revenue gains have not yet translated into proportional profitability. This constrains capital returns and internal capital generation, requiring sustained NIM improvement or structural cost reductions to restore long-term earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale and Deposit Base Expansion
The Flushing merger materially increases franchise scale and core funding, adding substantial low-cost deposits and branching density. That enlarged deposit base and geographic reach support durable net interest income, cross-sell opportunities and faster realization of operating leverage over 2–6 months.
Read all positive factors
Oceanfirst Financial (OCFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.90B
Dividend Yield4.14%
Average Volume (3M)329.98K
Price to Earnings (P/E)24.1
Beta (1Y)0.99
Revenue Growth10.24%
EPS Growth-39.66%
CountryUS
Employees926
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.17
Shares Outstanding96,700,000
10 Day Avg. Volume457,239
30 Day Avg. Volume329,978
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.62
Price to Sales (P/S)1.57
P/FCF Ratio12.96
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.00Price Target Upside-2.86% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.86
Revenue Forecast (FY)$600.60M
Oceanfirst Financial Business Overview & Revenue Model
Company Description
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers in the United States. The company accepts deposit products, such as money market a...
How the Company Makes Money
OceanFirst Financial primarily makes money through its banking operations at OceanFirst Bank. Its core earnings are typically driven by (1) net interest income—interest earned on loans and investment securities minus interest paid on deposits and ...
Oceanfirst Financial Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive outlook: management reported strong core operating performance (core EPS +39% YoY, NII up 25% QoQ, NIM expansion), meaningful scale and capital support from the Flushing acquisition and Warburg investment, and clear near-term guidance for margin and expense improvement as integration proceeds. Key negatives were the GAAP loss caused by substantial one-time merger expenses, an allowance build and purchase accounting marks that diluted tangible book value, and elevated reported criticized loan metrics (driven by accounting treatment). Management emphasized that many adverse metrics are non-underlying (purchase accounting) and provided concrete cost-save and NIM uplift targets, leading to a net-positive operational trajectory.Positive Updates
Transformational Acquisition Adds Scale
Completed acquisition of Flushing Financial on June 1; added ~$8.7B total assets, ~$5.0B loans, ~$7.4B deposits and 30 branches, bringing combined franchise to ~ $23B in assets. Concurrent $225M strategic investment from Warburg Pincus.
Negative Updates
GAAP Net Loss Driven by Large Non-Recurring Merger Costs
Reported GAAP net loss per diluted share of $0.04 driven by $0.47 per share ($33.6M after-tax) of non-recurring merger-related expenses; GAAP operating expenses were $130M and included ~$43M of merger-related costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Transformational Acquisition Adds Scale
Completed acquisition of Flushing Financial on June 1; added ~$8.7B total assets, ~$5.0B loans, ~$7.4B deposits and 30 branches, bringing combined franchise to ~ $23B in assets. Concurrent $225M strategic investment from Warburg Pincus.
Read all positive updates
Company Guidance
Management updated pro forma 2H‑2026 guidance: loans and deposits are expected to grow 1–2% from June 30 by year‑end, total deposits stood at $17.8B (up $6.6B in the quarter, including $7.4B from Flushing) and non‑interest‑bearing deposits exceeded $100M; net interest margin is forecast to expand to 3.07%–3.12% in Q3 and 3.09%–3.14% in Q4 (no rate change modeled) with a 2027 margin target near 3.20%, and net interest income should benefit from a full quarter of the combined franchise (loan accretion ~ $1M in June, ~ $5M expected in Q3 and roughly $16–18M annualized thereafter). Other income is expected to be $12M–$16M per quarter; GAAP operating expenses are guided to $120M–$125M in Q3 and $110M–$115M in Q4 (including a ~ $2M one‑time digital platform cost), with management targeting a run‑rate closer to $100M and continued cost‑savings/operating‑leverage through 2027. Credit and capital metrics noted: NPLs ex‑ACD 0.33% of loans, ACL 1.29% of loans, annualized net charge‑offs ~5 bps, criticized/classified loans 3.12% of loans, normalized effective tax rate ~28%, CET1 ~10.7%, book value per share $18.19, and the quarterly cash dividend maintained at $0.20.Oceanfirst Financial Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
61
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 663.09M | 655.60M | 687.95M | 636.96M | 485.30M | 388.84M |
| Gross Profit | 362.50M | 357.19M | 372.12M | 381.04M | 423.83M | 363.92M |
| EBITDA | 105.92M | 93.27M | 145.20M | 153.17M | 210.40M | 157.12M |
| Net Income | 69.97M | 70.98M | 100.06M | 104.03M | 146.60M | 110.08M |
Balance Sheet | ||||||
| Total Assets | 14.56B | 14.56B | 13.42B | 13.54B | 13.10B | 11.74B |
| Cash, Cash Equivalents and Short-Term Investments | 1.32B | 1.37B | 951.12M | 907.61M | 625.59M | 773.20M |
| Total Debt | 1.50B | 1.63B | 1.26B | 1.05B | 1.48B | 349.81M |
| Total Liabilities | 12.89B | 12.90B | 11.72B | 11.88B | 11.52B | 10.22B |
| Stockholders Equity | 1.67B | 1.66B | 1.70B | 1.66B | 1.58B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | 106.41M | 79.51M | 84.68M | 116.55M | 229.55M | 117.93M |
| Operating Cash Flow | 114.21M | 87.21M | 92.24M | 124.26M | 250.45M | 159.97M |
| Investing Cash Flow | -1.30B | -1.18B | 106.40M | -488.00M | -1.32B | -1.48B |
| Financing Cash Flow | 1.16B | 1.10B | -228.75M | 349.47M | 1.01B | 223.99M |
Oceanfirst Financial Technical Analysis
Neutral
19.56
Price Trends
18.93
Positive
18.62
Positive
18.50
Positive
Market Momentum
0.27
Positive
55.91
Neutral
42.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Neutral. The current price of 19.56 is above the 20-day moving average (MA) of 19.48, above the 50-day MA of 18.93, and above the 200-day MA of 18.50, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 42.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OCFC.
Oceanfirst Financial Risk Analysis
Oceanfirst Financial disclosed 17 risk factors in its most recent earnings report. Oceanfirst Financial reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Oceanfirst Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.43B | 8.12 | 19.30% | 2.58% | -13.65% | 120.32% | |
77 Outperform | $1.30B | 14.21 | 10.39% | 1.09% | 33.92% | -4.91% | |
75 Outperform | $1.42B | 13.10 | 12.52% | 2.78% | 7.78% | 17.67% | |
74 Outperform | $1.49B | 12.47 | 9.85% | 4.09% | -0.29% | 12.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.90B | 24.14 | 4.22% | 4.09% | 10.24% | -39.66% | |
64 Neutral | $1.82B | 19.34 | 8.43% | ― | 26.83% | -37.24% |
* Financial Sector Average
OCFC
Oceanfirst Financial
19.31
3.66
23.42%
OSBC
Old Second Bancorp
25.29
8.92
54.53%
PEBO
Peoples Bancorp
41.66
14.98
56.13%
TMP
Tompkins Financial Corporation
99.84
39.24
64.75%
CTBI
Community Bancorp
78.45
27.15
52.93%
FSUN
FirstSun Capital Bancorp
38.68
3.84
11.02%
Oceanfirst Financial Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
OceanFirst Financial Posts Quarterly Loss Amid Core Strength
Negative
Jul 31, 2026
OceanFirst Financial Corp. reported a net loss of $3.0 million, or $0.04 per diluted share, for the quarter ended June 30, 2026, reversing net income of $16.2 million a year earlier and $20.5 million in the prior quarter, while six‑month net...
Business Operations and StrategyM&A Transactions
OceanFirst Financial Rebalances Risk with Multifamily Loan Sale
Positive
Jun 30, 2026
On June 29, 2026, OceanFirst Financial Corp. announced that OceanFirst Bank N.A. had completed the previously disclosed sale of a $1.3 billion portfolio of more than 1,400 multifamily loans largely tied to New York City rent-regulated properties. ...
Business Operations and StrategyFinancial Disclosures
OceanFirst Sells Multifamily Loans to Reduce CRE Risk
Positive
Jun 8, 2026
On June 8, 2026, OceanFirst Financial Corp. announced that OceanFirst Bank N.A. had agreed to sell $1.4 billion of multifamily loans, representing a majority of the multifamily portfolio acquired with its June 1, 2026 acquisition of Flushing Finan...
Executive/Board ChangesM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
OceanFirst Finalizes Flushing Merger and Warburg Capital Infusion
Positive
Jun 1, 2026
On June 1, 2026, OceanFirst Financial completed its previously announced mergers with Flushing, assuming $251.9 million of Flushing’s subordinated and junior subordinated debt across multiple note issuances maturing between 2031 and 2037. In...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
OceanFirst Shareholders Back Directors, Auditor and Incentive Plan
Positive
May 28, 2026
At its 2026 Annual Meeting held on May 27, 2026, OceanFirst Financial Corp. stockholders elected thirteen directors to one-year terms and ratified Deloitte Touche LLP as the independent auditor for the fiscal year ending December 31, 2026. Shareh...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
OceanFirst Financial launches May 2026 investor presentation series
Positive
May 1, 2026
OceanFirst Financial Corp., traded on Nasdaq as OCFC, is the holding company for OceanFirst Bank, a regional bank headquartered in Red Bank, N.J., with 41 branches and nine commercial banking centers across New Jersey, New York City and Greater Ph...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.