OceanFirst Financial (OCFC) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 GAAP EPS of $0.23 and core EPS of $0.41, with strong organic growth momentum and investments earlier in the year.

• Net income available to common stockholders was $13.1 million for Q4 2025, and $67.1 million for the full year, both down year-over-year.

• Announced a merger agreement with Flushing Financial Corporation and a $225 million capital raise from Warburg Pincus, expected to close in Q2 2026.

• Board approved a $0.20 per share quarterly dividend, marking the 116th consecutive quarterly dividend.

Financial highlights

• Net interest income for Q4 2025 rose 5% sequentially to $95.3 million, and 14% year-over-year.

• Total loans increased $474 million (18% annualized), with $1.05 billion in originations.

• Deposits grew by $528 million (5.1%), with $323 million from organic growth and time deposits up $253 million, mainly from brokered CDs.

• Non-interest income decreased by $3.3 million to $9 million, mainly due to lower title fees and reduced gain on sale of loans.

• Core operating expenses were $71 million, down $1 million (2%) from the prior quarter.

• Pre-tax, pre-provision core earnings grew 9% ($3 million) sequentially.

Outlook and guidance

• Q1 2026: Loans and deposits expected to grow 1-2% sequentially; NIM expansion of 3-4 bps; net interest income to grow in line with loans; operating expenses of $70–$71 million.

• 2026: Loans and deposits projected to grow 7-9%; NIM above 3.00%; three 25 bps rate cuts modeled; operating expenses $275–$285 million.

• Other income expected at $7–$9 million per quarter; expenses to remain flat at current run rates.

• CET1 ratio expected to remain above 10.5%.

• Guidance does not include the impact of the Flushing acquisition.