OceanFirst Financial Corp (OCFC) Reports Q3 Earnings: Key Highlights
Net income available to common stockholders for Q3 2023 was $19.7 million, down from $37.6 million in Q3 2022.
Core earnings for Q3 2023 were $18.6 million, a decrease from $35.0 million in the same period last year.
Total deposits increased by $375.6 million, or 4%, compared to the prior linked quarter.
The company's estimated common equity tier 1 capital ratio remained above "well-capitalized" levels, at 10.36% at the end of Q3 2023.
On October 19, 2023, OceanFirst Financial Corp (NASDAQ:OCFC) released its earnings report for the third quarter of 2023. The company reported a net income available to common stockholders of $19.7 million, or $0.33 per diluted share, for the three months ended September 30, 2023. This is a decrease compared to $37.6 million, or $0.64 per diluted share, for the corresponding prior year period. For the nine months ended September 30, 2023, the company reported net income available to common stockholders of $73.3 million, or $1.24 per diluted share, as compared to $90.3 million, or $1.53 per diluted share, for the corresponding prior year period.
Financial Performance
OceanFirst Financial Corp (NASDAQ:OCFC) reported core earnings for the three and nine months ended September 30, 2023 of $18.6 million and $78.4 million, respectively, representing a decrease from $35.0 million and $98.4 million for the corresponding prior year periods. The company's return on average assets for Q3 2023 was 0.57%, down from 1.19% in Q3 2022. The return on average stockholders equity also decreased from 9.68% in Q3 2022 to 4.75% in Q3 2023.
Key Developments
During the recent quarter, OCFC saw a growth in total deposits, which increased by $375.6 million, or 4%, compared to the prior linked quarter. The company's asset quality metrics remained strong, despite the impact of a charge-off related to a single credit relationship announced on September 14, 2023. The company's estimated common equity tier 1 capital ratio remained above "well-capitalized" levels, at 10.36% at the end of Q3 2023.
Dividends
The company's Board of Directors declared its 107th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on November 17, 2023 to common stockholders of record on November 6, 2023.
Outlook
Despite the decrease in net income and core earnings, the company's CEO, Christopher D. Maher, expressed satisfaction with the company's continued growth in deposits and strengthened capital position. He also highlighted the company's focus on high-quality growth and prudent management of the balance sheet for long-term market conditions.
This article first appeared on GuruFocus.
