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Oceanfirst Financial (OCFC)
NASDAQ:OCFC
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Oceanfirst Financial
(NASDAQ:OCFC)
73Outperform
Oceanfirst Financial (OCFC) vs. S&P 500 (SPY)
Market Cap
$920.52M
Dividend Yield5.09%
Average Volume (3M)308.07K
Price to Earnings (P/E)9.5
Beta (1Y)1.46
Revenue Growth7.54%
EPS Growth-2.82%
CountryUS
Employees975
SectorFinancial
Sector Strength79
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.65
Shares Outstanding58,557,148
10 Day Avg. Volume336,318
30 Day Avg. Volume308,066
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.65
Price to Cash Flow (P/CF)5.60
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.67Price Target Upside38.26% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 through its primary subsidiary, OceanFirst Bank N.A., offering a wide range of financial services centered around personal and commercial banking. The bank provides traditional deposit products, such as savings and checking accounts, as well as a variety of loan products, including residential and commercial mortgages, consumer loans, and small business loans. OceanFirst also offers wealth management and trust services, catering to the financial needs of individuals and businesses in the regions it serves.
How the Company Makes MoneyOceanFirst Financial Corp. primarily generates revenue through interest income from its lending activities, including residential and commercial mortgages, consumer loans, and loans to small businesses. The bank earns interest by charging borrowers rates that are higher than what it pays on customer deposits. Additionally, OceanFirst generates non-interest income from fees and service charges associated with account maintenance, transaction fees, and other banking services. Wealth management and trust services also contribute to the company's revenue through management fees and commissions. Strategic acquisitions and partnerships enable OceanFirst to expand its market reach and diversify its financial offerings, further enhancing its revenue-generating capabilities.
Oceanfirst Financial Financial Statement Overview
Summary
Oceanfirst Financial exhibits strong profitability and a stable balance sheet with no leverage concerns. Despite some 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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 379.81M | 385.68M | 431.60M | 352.09M | 367.16M | Gross Profit |
| 354.75M | 640.86M | 388.17M | 310.65M | 322.06M | EBIT |
| -20.00K | 136.86M | 246.87M | 142.24M | 81.04M | EBITDA |
| -20.00K | 0.00 | 210.40M | 157.12M | 95.77M | Net Income Common Stockholders |
| 100.06M | 104.03M | 146.60M | 110.08M | 63.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 951.12M | 153.72M | 625.59M | 773.20M | 1.46B | Total Assets |
| 13.42B | 13.54B | 13.10B | 11.74B | 11.45B | Total Debt |
| 1.20B | 1.14B | 1.41B | 229.14M | 235.47M | Net Debt |
| 1.08B | 820.74M | 1.24B | 24.19M | -1.04B | Total Liabilities |
| 11.72B | 11.88B | 11.52B | 229.14M | 235.47M | Stockholders Equity |
| 1.70B | 1.66B | 1.58B | 1.52B | 1.48B |
| Cash Flow | Free Cash Flow | |||
| 51.84M | 116.55M | 229.55M | 117.93M | 117.93M | Operating Cash Flow |
| 51.84M | 124.26M | 250.45M | 159.97M | 132.66M | Investing Cash Flow |
| 21.07M | -488.00M | -1.32B | -1.48B | -22.17M | Financing Cash Flow |
| -71.78M | 349.47M | 1.01B | 223.99M | 1.07B |
Oceanfirst Financial Technical Analysis
Negative
14.95
Price Trends
17.22
Negative
18.09
Negative
17.61
Negative
Market Momentum
-0.15
Negative
43.53
Neutral
17.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Negative. The current price of 14.95 is below the 20-day moving average (MA) of 16.56, below the 50-day MA of 17.22, and below the 200-day MA of 17.61, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $868.03M | 12.88 | 5.99% | 3.38% | 6.06% | -15.21% | |
73 Outperform | $920.52M | 9.54 | 5.95% | 5.09% | 7.54% | -2.82% | |
73 Outperform | $840.51M | 9.49 | 11.16% | 5.21% | 15.33% | 3.68% | |
72 Outperform | $870.88M | 10.44 | 11.35% | 4.03% | 15.40% | 5.79% | |
68 Neutral | $904.41M | 13.19 | 5.68% | 5.32% | 7.79% | -8.83% | |
64 Neutral | $13.46B | 9.44 | 9.34% | 4.72% | 16.14% | -8.80% | |
61 Neutral | $873.26M | 12.18 | 10.25% | 4.07% | 41.65% | 668.73% |
* Financial Sector Average
Performance Comparison
OCFC
Oceanfirst Financial
14.95
0.85
6.03%
BRKL
Brookline Bancorp
9.53
0.92
10.69%
SBSI
Southside Bancshares
26.49
0.81
3.15%
TMP
Tompkins Financial Corporation
55.89
13.62
32.22%
CTBI
Community Bancorp
45.97
7.45
19.34%
CNOB
ConnectOne Bancorp
21.17
3.72
21.32%
Oceanfirst Financial Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -21.07% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong net income growth, expansion in net interest income, and robust asset quality. However, the increase in operating expenses and decrease in noninterest income are areas of concern. Overall, the company's performance appears stable with strategic plans for growth.Highlights
Net Income and Earnings Per Share Growth
Net income of $0.36 per share on a fully diluted GAAP basis and $0.38 per share on a core basis.
Expansion of Net Interest Income and Margin
Net interest income and margin grew to $83 million and 2.69%, respectively.
Reduction in Brokered Deposits
Year-to-date runoff of brokered CDs is $557 million, nearly eliminating the brokered deposits.
Strong Asset Quality and Capital Levels
Nonperforming loans at 0.35% and loans 30 to 89 days past due at 0.36%. Common equity Tier 1 capital ratio of 11.2%.
Dividend Continuation
Board approved a quarterly cash dividend of $0.20 per common share, marking the 112th consecutive quarterly dividend.
Lowlights
Increase in Operating Expenses
Operating expenses increased by $1.1 million to $64.8 million, with expectations of further modest increases.
Decrease in Noninterest Income
Noninterest income decreased by $2.5 million to $12.2 million during the quarter.
Impact of Macroeconomic Factors on Reserve Build
Reserve build impacted by macroeconomic factors and Day 1 CECL provision from Spring Garden acquisition.
Company Guidance
During the OceanFirst Financial Corp's Q4 2024 earnings call, the company provided several key metrics and insights into their performance and future outlook. The company reported a net income of $0.36 per share on a fully diluted GAAP basis and $0.38 per share on a core basis. They experienced growth in net interest income and margin, with net interest income totaling $83 million and a margin of 2.69%. Loan originations for the quarter amounted to $515 million, contributing to an annualized net loan growth of 4%, while deposit balances, excluding brokered CDs, increased by approximately 1%. The reserve build was attributed to the day 1 CECL provision from the Spring Garden acquisition and macroeconomic factors, with loans classified as special mention and substandard decreasing by 16% to represent just 1.56% of total loans. The common equity Tier 1 capital ratio was reported at 11.2%, and the tangible book value per share stood at $18.98. Furthermore, they announced a quarterly cash dividend of $0.20 per common share, marking the company's 112th consecutive quarterly dividend. Looking ahead, they highlighted ongoing strategic efforts, including the addition of new C&I bankers and a focus on expanding their premier banking team to enhance deposit growth.Oceanfirst Financial Corporate Events
Executive/Board Changes
OceanFirst Financial Updates Executive Retirement Agreement
Neutral
Mar 31, 2025
On March 28, 2025, OceanFirst Bank, a subsidiary of OceanFirst Financial, amended and restated the Supplemental Executive Retirement Account Agreement with Christopher D. Maher, the Chairman, President, and CEO. The updated agreement clarifies the terms regarding termination due to disability, ensuring Mr. Maher receives the account balance as of the termination date plus any credited amount for that plan year, with no other substantive changes made.
DividendsFinancial Disclosures
OceanFirst Financial Declares Dividend Amid Net Income Decline
Neutral
Jan 23, 2025
OceanFirst Financial Corp. announced a regular quarterly cash dividend of $0.20 per share, payable on February 14, 2025, to stockholders of record as of February 3, 2025. The company reported a decrease in net income for the quarter and year ended December 31, 2024, with quarterly net income at $20.9 million, down from $26.7 million the previous year. The annual net income also saw a decline from $100.0 million in 2023 to $96.0 million in 2024. Despite the decrease, OceanFirst Financial experienced a slight margin expansion in the recent quarter, indicating some operational improvements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.