OceanFirst Financial Q4 adjusted EPS beats estimates, helped by growth in commercial loans

Overview

• Regional bank's Q4 adjusted EPS beat analyst expectations

• Net income for Q4 decreased compared to the prior year

• Company recently announced merger agreement with Flushing Financial and investment from Warburg Pincus

Outlook

• OceanFirst expects merger with Flushing Financial to close in Q2 2026

• Company maintains strong commercial loan pipeline for 2026

• OceanFirst aims for profitability gains through strategic initiatives in 2026

Result Drivers

• NET INTEREST INCOME - Increased by $4.6 mln to $95.3 mln, driven by growth in average interest-earning assets

• LOAN GROWTH - Total loans increased $474.0 mln, primarily due to commercial loans

• CAPITAL POSITION - Strong capital supported by credit risk transfer reducing risk-weighted assets

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 $22.00, about 15.2% above its January 21 closing price of $19.09

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX9DLHfk

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