Oceanfirst Financial (OCFC) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: 4.05%
• Average Volume (3M): 329.98K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.02
• Revenue Growth: -2.15%
• EPS Growth: -25.32%
• Country: US
• Employees: 975
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 57,390,568
• 10 Day Avg. Volume: 457,239
• 30 Day Avg. Volume: 329,978
• PEG Ratio: -3.59
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 12.46
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 3.98
• Enterprise Value/Gross Profit: 7.15
• Enterprise Value/Ebitda: 22.88
• 1Y Price Target: $21.00
• Price Target Upside: 8.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $20.00 ▲(3.41% Upside)
• Action: Downgraded Date: 01/26/26
• Date: Action: Downgraded 01/26/26

OCFC scores above average primarily on stable financials (strong margins and free cash flow improvement) and a constructive earnings outlook with reiterated growth/NIM guidance and solid asset quality. Valuation is supportive with a moderate P/E and ~4.33% yield, while technical signals are mixed and slightly negative, keeping the overall score in check.

Positive Factors

Sustained loan and NII growth

Consistent, sizable loan originations and a $474M quarterly loan increase underpin durable net interest income growth. Persistent organic lending expansion supports long‑term revenue generation, leverages existing deposit base, and provides structural NII upside beyond cyclical rate moves.

Strong asset quality

Very low NPLs, NPAs and minimal net charge-offs indicate conservative underwriting and portfolio resilience. Sustained low credit losses protect capital, reduce provisioning variability, and support reliable long‑term earnings and dividend capacity even through economic cycles.

Merger and strategic capital infusion

The Flushing acquisition plus a $225M private equity investment is a structural scale and capital move. If completed, it should expand retail/commercial footprint, improve operating leverage, and strengthen the capital base to fund growth while supporting long‑term profitability improvements.

Negative Factors

Declining revenue growth and low ROE

Negative revenue growth and a subpar ROE suggest limited efficiency in converting balance sheet growth into shareholder returns. Persistently weak top‑line trends and low profitability hinder free cash flow expansion and reduce buffer for reinvestment or capital return over the medium term.

Rising leverage

Higher debt-to-equity raises financial risk and interest expense sensitivity. Elevated leverage constrains capital flexibility for acquisitions or stress absorbency, increasing earnings volatility and regulatory scrutiny, which can weigh on sustainable dividend and lending capacity over time.

Outsourcing reduced noninterest income

The decision to outsource residential/title operations produced portfolio runoff and materially cut fee and gain-on-sale revenue. That structural shift reduces recurring noninterest income diversification, increasing reliance on NII and making earnings more sensitive to loan margin and funding cycles.

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. 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.

How the Company Makes Money

OceanFirst Financial generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. Key revenue streams include residential and commercial mortgage loans, consumer loans, and business banking services. The bank also earns non-interest income from fees associated with deposit accounts, wealth management services, and transaction services. Additionally, OceanFirst has strategic partnerships with various financial service providers to enhance its offerings and increase customer engagement. The company may also benefit from economic factors such as interest rate changes and community growth, which can impact lending demand and deposit levels.

Oceanfirst Financial Financial Statement Overview

Summary

Fundamentals are steady but not strong: solid profitability (gross margin 81.96%, net margin 13.46%) and strong free cash flow growth (+109.66%) support the score, while declining revenue growth (-2.12%), higher leverage (debt-to-equity 1.19) and relatively low ROE (4.76%) temper it.

Income Statement

Oceanfirst Financial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 2.12%, which is a concern. However, the company maintains a strong gross profit margin of 81.96% and a decent net profit margin of 13.46%. The EBIT and EBITDA margins are stable, reflecting operational efficiency. The decline in revenue growth needs attention, but overall profitability remains solid.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 1.19 in the TTM, indicating higher leverage, which could pose a risk if not managed properly. Return on equity is at 4.76%, showing a decrease from previous years, which suggests a need for improved profitability. The equity ratio remains healthy, indicating a stable asset base.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 109.66% in the TTM. The free cash flow to net income ratio is strong at 0.91, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	673.23M	687.95M	636.96M	485.30M	388.84M	433.82M
Gross Profit	375.23M	372.12M	381.04M	423.83M	363.92M	307.76M
EBITDA	117.20M	145.20M	153.17M	210.40M	157.12M	95.77M
Net Income	79.79M	100.06M	104.03M	146.60M	110.08M	63.31M
Balance Sheet
Total Assets	14.32B	13.42B	13.54B	13.10B	11.74B	11.45B
Cash, Cash Equivalents and Short-Term Investments	1.54B	951.12M	907.61M	625.59M	773.20M	1.46B
Total Debt	1.97B	1.26B	1.05B	1.48B	349.81M	363.93M
Total Liabilities	12.67B	11.72B	11.88B	11.52B	10.22B	9.96B
Stockholders Equity	1.65B	1.70B	1.66B	1.58B	1.52B	1.48B
Cash Flow
Free Cash Flow	89.57M	84.68M	116.55M	229.55M	117.93M	117.93M
Operating Cash Flow	96.01M	92.24M	124.26M	250.45M	159.97M	132.66M
Investing Cash Flow	-796.86M	106.40M	-488.00M	-1.32B	-1.48B	-22.17M
Financing Cash Flow	760.80M	-228.75M	349.47M	1.01B	223.99M	1.07B

Oceanfirst Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 19.34 is above the 20-day moving average (MA) of 19.12, above the 50-day MA of 18.90, and above the 200-day MA of 17.76, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 54.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OCFC.

Oceanfirst Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTBI	78 Outperform	$1.15B	11.64	12.15%	3.44%	9.93%	17.67%
TMP	77 Outperform	$1.19B	7.36	11.20%	3.39%	9.55%	27.32%
PEBO	73 Outperform	$1.20B	11.27	9.13%	5.30%	0.11%	-18.63%
OSBC	72 Outperform	$1.08B	12.68	9.24%	1.24%	10.42%	-18.32%
FSUN	72 Outperform	$1.09B	11.27	8.28%	―	4.44%	3.19%
OCFC	69 Neutral	$1.12B	16.69	4.77%	4.05%	-2.15%	-25.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Oceanfirst Financial Corporate Events

OceanFirst Financial Reports Mixed Earnings, Declares Quarterly Dividend

On January 22, 2026, OceanFirst Financial Corp. reported that net income available to common stockholders fell to $13.1 million, or $0.23 per diluted share, for the quarter ended December 31, 2025, down from $20.9 million a year earlier and $17.3 million in the prior quarter, while full-year 2025 net income declined to $67.1 million, or $1.17 per diluted share, from $96.0 million, or $1.65 per diluted share, in 2024. Despite weaker GAAP earnings and higher efficiency ratios, core earnings for the fourth quarter rose to $23.5 million, or $0.41 per diluted share, from $22.1 million in the prior-year quarter, supported by a $4.6 million, or 5%, increase in net interest income to $95.3 million and 9% growth in pre-tax, pre-provision income to $33.2 million, indicating that underlying operating performance and balance-sheet-driven income, including loan growth, remain more resilient than headline profit figures suggest. The Board of Directors also declared a regular quarterly cash dividend of $0.20 per share, payable on February 13, 2026 to shareholders of record as of February 2, 2026, underscoring the company’s commitment to returning capital to investors even as reported profitability moderates year over year.

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.

OceanFirst Financial Announces Merger and Capital Investment

On December 29, 2025, OceanFirst Financial Corp., Flushing Financial Corporation and a wholly owned OceanFirst merger subsidiary signed a definitive merger agreement that will combine the two banking organizations in a multi-step transaction, with Flushing first merging into the merger subsidiary, then into OceanFirst, followed by the merger of Flushing Bank into OceanFirst Bank. Each outstanding Flushing common share will be exchanged for 0.85 shares of OceanFirst common stock, subject to customary conditions including regulatory and shareholder approvals, with closing targeted for the second quarter of 2026; governance of the combined company will feature a 17-member board with representation from both institutions, Flushing CEO John R. Buran serving as non‑executive chairman for two years, and OceanFirst retaining Flushing’s Uniondale headquarters as a regional operational hub. Concurrent with the merger agreement, OceanFirst also entered into an investment agreement under which affiliates of Warburg Pincus will inject $225 million through a mix of OceanFirst common stock and a new non‑voting, common‑equivalent stock class, alongside a sizable warrant for additional NVCE shares, providing growth capital, board representation for Warburg, and structured ownership and transfer limitations that are expected to support the balance sheet and capital structure of the enlarged institution.

The most recent analyst rating on (OCFC) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Oceanfirst Financial stock, see the OCFC Stock Forecast page.

OceanFirst Announces Flushing Merger and Warburg Capital Investment

On December 29, 2025, OceanFirst Financial Corp. and Flushing Financial Corporation announced they had entered into an Agreement and Plan of Merger under which a newly formed OceanFirst subsidiary will merge into Flushing, followed by Flushing’s merger into OceanFirst and, subsequently, the merger of Flushing Bank into OceanFirst Bank, leaving OceanFirst and its national bank as the surviving entities. Concurrently, OceanFirst agreed to a $225 million equity investment from affiliates of Warburg Pincus, involving the issuance of OceanFirst common stock, a new non‑voting, common‑equivalent class of stock, and a seven‑year warrant tied to OceanFirst’s share price, a capital infusion that is expected to support the financing of the Flushing acquisition and could strengthen OceanFirst’s capital base and strategic position in its regional banking markets, with ownership and dilution implications for existing shareholders.

The most recent analyst rating on (OCFC) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Oceanfirst Financial stock, see the OCFC Stock Forecast page.

OceanFirst Financial Closes $185M Subordinated Notes Offering

On October 27, 2025, OceanFirst Financial Corp. announced the pricing of a public offering of $185 million in subordinated notes due 2035, with a fixed-to-floating interest rate structure. The offering, which closed on October 29, 2025, is expected to generate net proceeds of approximately $181.9 million, which the company plans to use to repay existing debt, support growth initiatives at its subsidiaries, and for general corporate purposes. This strategic financial move is intended to strengthen the company’s capital structure and support its expansion efforts.

The most recent analyst rating on (OCFC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Oceanfirst Financial stock, see the OCFC Stock Forecast page.