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Oceanfirst Financial (OCFC)
NASDAQ:OCFC
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Oceanfirst Financial (OCFC) AI Stock Analysis

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OCFC

Oceanfirst Financial

(NASDAQ:OCFC)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
$20.50
▲(14.46% Upside)
OceanFirst Financial's overall stock score of 72 reflects a stable financial foundation with strong technical indicators and a positive outlook from recent corporate events. While the company faces challenges with declining profitability margins and increased operating expenses, its strategic initiatives and attractive dividend yield provide a balanced investment opportunity.

Oceanfirst Financial (OCFC) vs. SPDR S&P 500 ETF (SPY)

Oceanfirst Financial Business Overview & Revenue Model

Company DescriptionOceanFirst Financial (OCFC) is a financial holding company based in New Jersey that primarily operates through its wholly-owned subsidiary, OceanFirst Bank. The company provides a range of banking products and services, including personal and commercial banking, mortgage lending, and wealth management. OceanFirst serves a diverse customer base, focusing on both retail and commercial clients, and has a presence in various sectors including residential real estate, small business lending, and investment services.
How the Company Makes MoneyOceanFirst Financial generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and wealth management services. The bank earns interest on loans made to individuals and businesses, which typically represents the largest portion of its revenue. Additionally, OceanFirst charges fees for account maintenance, ATM usage, and transaction services, contributing to its non-interest income. The company also engages in mortgage lending, which adds to its interest income. Strategic partnerships with local businesses and real estate developers further enhance its lending portfolio and client base, fostering growth and stability in its earnings.

Oceanfirst Financial Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong loan growth, a record-high commercial pipeline, and stable asset quality. However, the increased operating expenses and decline in noninterest income were notable challenges.
Q2-2025 Updates
Positive Updates
Net Interest Income Growth
OceanFirst reported a third consecutive quarter of growth in net interest income, which grew by $1 million, with stability in net interest margin expanding by 1 basis point.
Loan Growth
Total loans for the quarter increased by $60 million, representing a 2% annualized growth rate, with strong originations of $716 million. Notably, commercial and industrial loans increased by 8%.
Strong Asset Quality
Total loans classified as special mention and substandard decreased by 3% to $145 million or just 1.4% of total loans, which is substantially lower than their peer group.
Commercial Pipeline Record
The commercial pipeline reached a record high of $791 million, indicating strong future lending opportunities.
Share Repurchase and Dividend
The company repurchased 1 million shares for $17 million and authorized an additional 3 million shares for repurchase. A quarterly cash dividend of $0.20 per share was also approved.
Negative Updates
Increased Operating Expenses
Operating expenses for the quarter were $71 million, driven by increased compensation expenses and professional fees, including $1.6 million of nonrecurring recruiting fees.
Decline in Noninterest Income
Noninterest income decreased by 1% compared to the prior quarter after excluding noncore and nonrecurring items, primarily due to lower swap activity.
Modest Decline in Average Interest-Earning Assets
Average interest-earning assets declined during the quarter, reflecting modest declines in the securities portfolio.
Company Guidance
During the OceanFirst Financial Corp Q2 2025 earnings call, the company reported earnings per share of $0.28 on a fully diluted GAAP basis and $0.31 on a core basis. Total loans increased by $60 million, representing a 2% annualized growth rate, with strong originations of $716 million, including an 8% increase in commercial and industrial loans. Net interest income grew by $1 million, with the net interest margin expanding by 1 basis point. Operating expenses were $71 million, consistent with expectations, and the company completed $17 million in share repurchases. The common equity Tier 1 capital ratio was estimated at 11%, and the tangible book value per share stood at $19.34. The company authorized an additional 3 million shares for repurchase and declared a quarterly cash dividend of $0.20 per common share. Asset quality remained strong, with nonperforming loans at 33 basis points of total loans, and the credit reserve was stable. Noninterest income grew by 5% to $11.8 million, and deposit balances from new premier banking teams reached $115 million by June 30. The company expects continued growth in net interest income and improvements in margins in the second half of the year.

Oceanfirst Financial Financial Statement Overview

Summary
Oceanfirst Financial demonstrates a stable financial foundation with strong gross margins and manageable leverage. However, declining profitability margins and negative revenue growth in the TTM highlight potential challenges. The company needs to address these issues to sustain long-term growth and profitability. Cash flow generation remains robust, supporting liquidity and operational needs.
Income Statement
68
Positive
Oceanfirst Financial's income statement shows a mixed performance. The TTM Gross Profit Margin is strong at 73.48%, indicating efficient cost management. However, the Net Profit Margin has decreased to 13.39% from previous years, reflecting reduced profitability. Revenue growth has turned negative at -3.62% in the TTM, a concern for future earnings potential. EBIT and EBITDA margins have also declined, suggesting pressure on operating efficiency.
Balance Sheet
72
Positive
The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.73, which is manageable for a regional bank. Return on Equity is modest at 5.19%, indicating moderate profitability from shareholders' equity. The Equity Ratio stands at 12.32%, showing a solid capital base. However, the slight increase in leverage over the years could pose risks if not managed carefully.
Cash Flow
65
Positive
Cash flow analysis reveals a positive Free Cash Flow Growth Rate of 21.50% in the TTM, a positive sign for liquidity. However, the Operating Cash Flow to Net Income Ratio is low at 0.48%, indicating potential issues in converting income into cash. The Free Cash Flow to Net Income Ratio is strong at 87.90%, suggesting good cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue654.30M687.95M636.96M485.30M388.84M433.82M
Gross Profit480.81M372.12M381.04M423.83M363.92M307.76M
EBITDA127.19M145.20M153.17M210.40M157.12M95.77M
Net Income87.58M100.06M104.03M146.60M110.08M63.31M
Balance Sheet
Total Assets13.33B13.42B13.54B13.10B11.74B11.45B
Cash, Cash Equivalents and Short-Term Investments906.16M951.12M907.61M625.59M773.20M1.46B
Total Debt1.20B1.26B1.05B1.48B349.81M363.93M
Total Liabilities11.68B11.72B11.88B11.52B10.22B9.96B
Stockholders Equity1.64B1.70B1.66B1.58B1.52B1.48B
Cash Flow
Free Cash Flow43.26M84.68M116.55M229.55M117.93M117.93M
Operating Cash Flow49.21M92.24M124.26M250.45M159.97M132.66M
Investing Cash Flow-62.26M106.40M-488.00M-1.32B-1.48B-22.17M
Financing Cash Flow2.45M-228.75M349.47M1.01B223.99M1.07B

Oceanfirst Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.91
Price Trends
50DMA
17.66
Positive
100DMA
17.44
Positive
200DMA
17.24
Positive
Market Momentum
MACD
0.08
Positive
RSI
49.17
Neutral
STOCH
39.24
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 17.91 is below the 20-day moving average (MA) of 18.15, above the 50-day MA of 17.66, and above the 200-day MA of 17.24, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 39.24 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 34 risk factors in its most recent earnings report. Oceanfirst Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Oceanfirst Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
931.91M9.6712.71%1.37%2.02%-2.80%
79
Outperform
1.02B11.0411.34%3.46%10.85%17.66%
73
Outperform
1.08B10.365.08%5.35%2.33%-16.87%
72
Outperform
$1.03B12.735.28%4.47%-0.91%-14.86%
72
Outperform
992.75M12.399.93%3.63%31.82%460.57%
69
Neutral
1.10B12.658.10%6.59%-3.66%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OCFC
Oceanfirst Financial
17.91
0.47
2.69%
OSBC
Old Second Bancorp
17.51
2.35
15.50%
PEBO
Peoples Bancorp
30.28
2.13
7.57%
TMP
Tompkins Financial Corporation
68.34
13.30
24.16%
CTBI
Community Bancorp
56.00
9.52
20.48%
FSUN
FirstSun Capital Bancorp
39.71
-2.99
-7.00%

Oceanfirst Financial Corporate Events

Business Operations and StrategyFinancial Disclosures
OceanFirst Financial to Present Strategic Growth Initiatives
Positive
Sep 2, 2025

OceanFirst Financial Corp. is set to present to investors after September 2, 2025, highlighting its financial performance and strategic growth initiatives. The company has shown significant growth in its commercial loan portfolio and geographic diversification, with a focus on maintaining a conservative credit risk profile and balanced deposit growth, which positions it well in the competitive banking industry.

DividendsBusiness Operations and StrategyFinancial Disclosures
OceanFirst Financial Reports Q2 2025 Earnings Decline
Neutral
Jul 24, 2025

OceanFirst Financial Corp. announced a decrease in net income for the second quarter of 2025, with earnings of $16.2 million, or $0.28 per diluted share, compared to $23.4 million, or $0.40 per diluted share, in the same period the previous year. The company also declared a quarterly cash dividend of $0.20 per share, payable on August 15, 2025. Despite the decline in earnings, OceanFirst reported a significant increase in its commercial loan pipeline and launched a new Premier Banking service, which has already attracted $115 million in new deposits.

Stock BuybackBusiness Operations and Strategy
OceanFirst Financial Announces New Stock Repurchase Program
Positive
Jul 17, 2025

On July 16, 2025, OceanFirst Financial Corp. announced a new 2025 Stock Repurchase Program, authorizing the repurchase of up to 3 million shares, approximately 5% of its outstanding common stock. This move is intended to enhance capital deployment flexibility and respond to market conditions, while supporting organic growth and strategic initiatives, reflecting the company’s confidence in its investment potential.

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.Date of analysis: Sep 03, 2025