OceanFirst Financial's Q3 net income falls due to restructuring costs

Overview

• OceanFirst Q3 net income falls to $17.3 mln, down from $24.1 mln last year

• Net interest income rises to $90.7 mln, driven by increased balances and margin

• Company outsources residential loan originations, incurring $4.1 mln restructuring charges

Outlook

• Company anticipates annual expense savings of $14 mln from residential outsourcing initiative starting in 2026

• OceanFirst Financial to incur $8 mln in restructuring charges next quarter

• Company maintains robust commercial loan pipeline at $710.9 mln

Result Drivers

• LOAN GROWTH - Total loans increased $372.9 mln, driven by commercial and industrial loan growth

• DEPOSIT GROWTH - Deposits rose to $10.4 bln

• RESIDENTIAL OUTSOURCING - Co incurs $4.1 mln restructuring charges due to outsourcing residential loan originations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for OceanFirst Financial Corp is $20.50, about 7.2% above its October 21 closing price of $19.02

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNXbt39Xl

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)