OceanFirst Financial | 10-Q: FY2025 Q3 Revenue: USD 174.5 M

Revenue: As of FY2025 Q3, the actual value is USD 174.5 M.

EPS: As of FY2025 Q3, the actual value is USD 0.3, missing the estimate of USD 0.356.

EBIT: As of FY2025 Q3, the actual value is USD -68.12 M.

Segment Revenue

• Commercial Real Estate - Investor Owned: Total loans outstanding were $5.21 billion, representing 49.4% of total loans as of September 30, 2025.
• Commercial and Industrial: Total loans were $1.99 billion, with $997.1 million in real estate and $998.9 million in non-real estate loans.
• Residential Real Estate: Loans totaled $3.14 billion, accounting for 29.7% of total loans.
• Consumer Loans: Primarily home equity loans and lines of credit, totaling $215.6 million.

Operational Metrics

• Net Income: Decreased to $17.3 million for the three months ended September 30, 2025, from $24.1 million in the prior year period.
• Operating Expenses: Increased to $76.3 million from $63.7 million in the prior year period, driven by restructuring charges and increased compensation and benefits.
• Provision for Credit Losses: Increased to $4.1 million from $517,000 in the prior year period.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $51.2 million for the nine months ended September 30, 2025.
• Investing Cash Flow: Net cash used in investing activities was - $788.3 million, primarily due to loan growth and securities purchases.
• Financing Cash Flow: Net cash provided by financing activities was $887.6 million, driven by increases in deposits and FHLB advances.

Unique Metrics

• Loan Growth: Total loans increased by $372.9 million, representing a 14% annualized growth rate, with significant growth in commercial and industrial loans.
• Deposit Growth: Total deposits increased to $10.4 billion, with a notable increase in Premier Banking deposits.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue focusing on loan and deposit growth, with a robust commercial loan pipeline of $710.9 million.
• Non-Core Business: The company is outsourcing residential loan originations and title business, expecting an annual expense savings of $14 million starting in 2026.

Outlook or Guidance

• The company anticipates continued growth in its commercial loan portfolio and expects to achieve significant cost savings from its residential outsourcing initiative.