OceanFirst Financial (OCFC) Q1 2026 earnings summary

Executive summary

• Net income available to common stockholders was $20.5 million ($0.36 per diluted share) for Q1 2026, flat year-over-year but up from $13.1 million in the prior quarter, with core EPS at $0.43, up 23% year-over-year.

• Core pre-tax pre-provision diluted EPS reached $0.60, reflecting continued earnings momentum.

• Strong quarter driven by net interest margin expansion, loan growth, and disciplined expense management.

• Announced merger with Flushing Financial approved by shareholders and regulators, expected to close in Q2 2026, pending final Federal Reserve approval.

• $4.2 million in merger-related expenses and $128,000 in restructuring charges recognized in Q1 2026.

Financial highlights

• Net interest income increased to $96.4 million, up $9.8 million (11%) year-over-year, driven by loan growth and improved net interest margin.

• Net interest margin improved to 2.93%, up 6 bps sequentially and 3 bps year-over-year.

• Total loans grew by $92 million (3% annualized), led by commercial and industrial loan growth, with a robust origination pipeline.

• Deposits rose by $192 million (1.7%) from the prior quarter, primarily from interest-bearing deposits.

• Non-interest income decreased to $6.7 million, mainly due to lower fees, service charges, and discontinued residential loan originations.

Outlook and guidance

• Management expects the Flushing merger to close in Q2 2026, following regulatory and shareholder approvals.

• Guidance for mid to high single-digit loan and deposit growth, NIM above 3% in the second half, and quarterly other income of $7–$9 million.

• Core operating expenses projected at $70–$71 million per quarter; full-year operating expenses expected at $275–$285 million.

• Effective tax rate expected to remain 23–25% absent policy changes.

• Capital and liquidity levels remain strong, with capital ratios well above regulatory minimums.