OceanFirst Financial (OCFC) Q1 2026 earnings summary

Executive summary

• Core diluted EPS reached $0.43 for Q1 2026, up 23% year-over-year, with GAAP EPS at $0.36 and core pre-tax pre-provision EPS at $0.60, reflecting continued earnings momentum.

• Net interest income rose to $96.4 million, up 11% year-over-year and 1% sequentially, driven by loan growth and margin expansion.

• Asset quality remained strong, with special mention and substandard loans at 1.5% of total loans, and non-performing loans at 0.31% of total loans.

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

• Core operating expenses declined year-over-year to $69 million, aided by outsourcing and expense management.

Financial highlights

• 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.

• Deposits increased by $192 million (1.7%) from the prior quarter, with non-maturity deposits up $273 million.

• Non-interest income decreased to $6.7 million, mainly from lower gains on loan sales and discontinued residential originations.

• Core efficiency ratio improved to 66.76% from 68.19% in the previous quarter.

Outlook and guidance

• Guidance for mid to high single-digit loan and deposit growth for 2026, with NIM above 3% in the second half and quarterly other income of $7–$9 million.

• Q2-26 outlook: loans and deposits expected to grow 1–2% sequentially; NIM to remain stable with modest expansion.

• Core operating expenses projected at $70–$71 million per quarter, excluding Flushing acquisition impact.

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

• Focus remains on margin expansion, prudent expense control, and business growth.