Education
About Us
Working with TipRanks
Follow Us
Oceanfirst Financial (OCFC)
NASDAQ:OCFC
Top Page
Oceanfirst Financial
(NASDAQ:OCFC)
Rating:71Outperform
Price Target:
$19.00
â–²(2.26%Upside)
Oceanfirst Financial (OCFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield4.39%
Average Volume (3M)280.37K
Price to Earnings (P/E)11.9
Beta (1Y)1.24
Revenue Growth1.38%
EPS Growth-10.46%
CountryUS
Employees975
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.35
Shares Outstanding58,383,526
10 Day Avg. Volume319,048
30 Day Avg. Volume280,371
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)1.11
Price to Sales (P/S)0.00
P/FCF Ratio13.46
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda3.50
Forecast
1Y Price Target
$19.50Price Target Upside4.95% Upside
Rating ConsensusHold
Number of Analyst Covering3
Oceanfirst Financial Business Overview & Revenue Model
Company DescriptionOceanFirst Financial Corp. (OCFC) is a regional bank holding company headquartered in Red Bank, New Jersey. It operates primarily through its subsidiary, OceanFirst Bank N.A., offering a wide range of financial services including personal and commercial banking, wealth management, and mortgage lending. The bank serves both individual and business customers across the New Jersey area with a focus on community-based banking solutions.
How the Company Makes MoneyOceanFirst Financial makes money through a variety of revenue streams primarily derived from interest income generated from its lending activities. The company offers a range of loans, including residential mortgages, commercial real estate loans, consumer loans, and business loans, earning interest on these loans. Additionally, OCFC earns non-interest income from services such as wealth management, deposit account services, and transaction fees. The bank also invests in securities, generating investment income. Partnerships with financial service providers and effective management of interest rate spreads further contribute to its profitability.
Oceanfirst Financial Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 13.92%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive growth in earnings per share, loan growth, and asset quality, alongside challenges such as deposit decreases, noninterest income decline, and increased operating expenses. The Premier Bank initiative is a positive strategic move that could drive future growth, yet there are immediate challenges that temper the positive aspects.Q1-2025 Updates
Positive Updates
Earnings Per Share and Revenue Growth
The company reported earnings per share of $0.35 on a fully diluted GAAP and core basis. There was a net interest income growth of more than $3 million for the quarter, with net interest margin expanding by 21 basis points.
Commercial and Industrial Loan Growth
Commercial and industrial loan growth was 6%, or 24% annualized, with the total commercial loan pipeline increasing to $376 million by the end of the period.
Asset Quality and Capital Levels
Asset quality remained strong with annualized net charge-offs at just three basis points. Total loans classified as special mention and substandard decreased by 5% to $149 million. The common equity Tier one capital ratio was 11.2%, and tangible book value per share was $19.16.
Premier Bank Initiative
The Premier Bank initiative is expected to drive organic deposit growth and additional margin improvement in the second half of the year. Nine premier banking teams were onboarded in April, which historically manage significant customer portfolios.
Negative Updates
Deposit Decrease
Deposits, excluding brokered CDs, decreased by approximately 2% compared to the prior quarter, primarily due to the runoff of higher-cost time deposits.
Noninterest Income Decline
Noninterest income decreased by 8% to $11.3 million during the quarter. Excluding non-core and non-recurring items, non-interest income decreased by 11%, driven primarily by seasonally lower title fees and service charges.
Increased Allowance for Credit Losses
The allowance for credit losses was increased by just over $5 million due to heightened macroeconomic uncertainty and a shift in loan portfolio mix to higher C and I exposures.
Operating Expense Increase
Quarterly operating expenses are expected to increase by approximately 10% in the coming quarters, with $4 million attributable to recent Premier Banking hires.
Company Guidance
During the Q1 2025 earnings call for OceanFirst Financial Corp., the company provided detailed guidance indicating a positive outlook based on several key metrics. Earnings per share were reported at $0.35 on a fully diluted GAAP and core basis. The company experienced growth in net interest income, which increased by more than $3 million, and net interest margin, which expanded by 21 basis points due to deposit repricing efforts. Commercial and industrial loan growth was robust at 6%, or 24% annualized, with the total commercial loan pipeline rising to $376 million. Operating expenses were slightly lower at $64 million compared to the previous quarter. Asset quality remained strong, with annualized net charge-offs at just three basis points and loans classified as special mention and substandard decreasing by 5% to $149 million, representing 1.5% of total loans. The common equity Tier one capital ratio stood at an estimated 11.2%, with a tangible book value per share of $19.16. The board approved a $0.20 quarterly cash dividend, marking the company's 113th consecutive dividend. The Premier Bank initiative was highlighted as a driver for organic deposit growth and margin improvement in the second half of the year.Oceanfirst Financial Financial Statement Overview
Summary
Oceanfirst Financial shows strong profitability and a stable balance sheet with no leverage concerns. Despite operational challenges reflected in negative EBIT, the company maintains a solid net income and strong cash flow management. The financial position is stable, though there is room for operational efficiency improvements.Income Statement
Oceanfirst Financial's gross profit margin for the latest year was 96.1%, highlighting strong profitability. However, a negative EBIT and EBITDA margin in the latest period indicate challenges in operational efficiency. Despite this, the company maintains a positive net profit margin of 15.6%. Revenue growth showed volatility with a significant increase in 2024 compared to 2023, but the overall trajectory is uneven.65
Positive
Balance Sheet
The company has a solid equity ratio of 12.7%, reflecting a stable financial structure. With zero debt in 2024, the debt-to-equity ratio is excellent, reducing financial risk. Return on equity stands at 5.9%, which is moderate but stable given the banking industry's standards. Overall, the balance sheet demonstrates strong financial health with no leverage risk.78
Positive
Cash Flow
Cash flow from operations is positive, supporting strong free cash flow with a decent operating cash flow to net income ratio of 0.5. The free cash flow to net income ratio is robust, indicating efficient cash management despite fluctuations in free cash flow growth. Overall, cash flow remains stable, supporting liquidity and operational needs.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 601.30M | 379.81M | 385.68M | 431.60M | 388.84M | 379.61M |
| Gross Profit | 491.38M | 354.75M | 381.04M | 423.83M | 363.92M | 322.06M |
| EBITDA | 135.57M | 145.20M | 153.17M | 210.40M | 157.12M | 95.77M |
| Net Income | 92.91M | 100.06M | 104.03M | 146.60M | 110.08M | 63.31M |
Balance Sheet | ||||||
| Total Assets | 13.31B | 13.42B | 13.54B | 13.10B | 11.74B | 11.45B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 951.12M | 153.72M | 625.59M | 773.20M | 1.46B |
| Total Debt | 1.15B | 1.20B | 1.14B | 1.41B | 229.14M | 235.47M |
| Total Liabilities | 11.60B | 11.72B | 11.88B | 11.52B | 229.14M | 235.47M |
| Stockholders Equity | 1.71B | 1.70B | 1.66B | 1.58B | 1.52B | 1.48B |
Cash Flow | ||||||
| Free Cash Flow | 36.18M | 84.68M | 116.55M | 229.55M | 117.93M | 117.93M |
| Operating Cash Flow | 43.07M | 92.24M | 124.26M | 250.45M | 159.97M | 132.66M |
| Investing Cash Flow | -31.61M | 106.40M | -488.00M | -1.32B | -1.48B | -22.17M |
| Financing Cash Flow | -120.45M | -228.75M | 349.47M | 1.01B | 223.99M | 1.07B |
Oceanfirst Financial Technical Analysis
Positive
18.58
Price Trends
16.95
Positive
16.88
Positive
17.58
Positive
Market Momentum
0.23
Negative
67.09
Neutral
86.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Positive. The current price of 18.58 is above the 20-day moving average (MA) of 17.22, above the 50-day MA of 16.95, and above the 200-day MA of 17.58, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 86.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $988.68M | 11.41 | 11.54% | 3.44% | 12.27% | 10.88% | |
73 Outperform | $1.21B | 13.12 | 6.21% | 2.99% | 2.27% | -2.50% | |
72 Outperform | $921.53M | 10.48 | 11.03% | 4.72% | 9.34% | 8.12% | |
71 Outperform | $1.06B | 11.92 | 5.51% | 4.39% | 1.38% | -10.46% | |
71 Outperform | $973.91M | 13.36 | 6.01% | 4.94% | 4.33% | -11.14% | |
67 Neutral | $16.86B | 11.64 | 9.71% | 3.83% | 11.61% | -9.60% | |
56 Neutral | $931.74M | 12.52 | 10.45% | 3.84% | 37.59% | 969.87% |
* Financial Sector Average
Performance Comparison
OCFC
Oceanfirst Financial
18.58
3.92
26.74%
BRKL
Brookline Bancorp
11.15
3.12
38.85%
SBSI
Southside Bancshares
30.77
5.55
22.01%
TMP
Tompkins Financial Corporation
65.48
20.94
47.01%
CTBI
Community Bancorp
55.18
14.96
37.20%
CNOB
ConnectOne Bancorp
24.70
7.02
39.71%
Oceanfirst Financial Corporate Events
Executive/Board ChangesShareholder Meetings
OceanFirst Financial 2025 Annual Meeting Outcomes
Neutral
May 21, 2025
OceanFirst Financial held its 2025 Annual Meeting on May 19, 2025, where shareholders voted on several key matters. Thirteen directors were elected for a one-year term, and an advisory vote approved the compensation for the company’s named executive officers. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.
The most recent analyst rating on (OCFC) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Oceanfirst Financial stock, see the OCFC Stock Forecast page.
Stock BuybackDividendsFinancial Disclosures
OceanFirst Financial Reports Q1 2025 Financial Results
Neutral
Apr 24, 2025
OceanFirst Financial Corp. announced its financial results for the first quarter ended March 31, 2025, reporting a net income of $20.5 million, a decrease from the previous year and the linked quarter. The company declared a regular quarterly cash dividend of $0.20 per share, payable on May 16, 2025. Key developments included a 21 basis point increase in net interest margin to 2.90%, a 6.1% rise in commercial and industrial loans, and a stable credit performance with a decrease in criticized and classified loans. The company highlighted strong asset quality metrics and capital accretion, including share repurchases.
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.