OceanFirst Financial Corp · Q3 2020 earnings

Briefing

Announced third quarter financial results, which were impacted by the COVID-19 pandemic through higher credit losses and increased operating expenses.

OceanFirst Financial Corp. reported a net loss available to common stockholders of $6.0 million, or $(0.10) per diluted share, for the three months ended September 30, 2020, compared to net income available to common stockholders of $25.0 million, or $0.49 per diluted share, for the corresponding prior year period. The results were impacted by the COVID-19 pandemic, through both higher credit losses and increased operating expenses.

• COVID-19: Third quarter results were adversely impacted by the COVID-19 pandemic, including an elevated credit loss provision of $35.7 million and an additional $1.7 million in operating expenses.
• Credit Quality: Transferred $45.5 million of forbearance loans to held-for-sale at September 30, 2020, excluding the loans held-for-sale, loans under full forbearance were $209.6 million, or 2.6% of total loans, at October 23, 2020.
• Deposits: Deposits increased by $315.5 million, of which $79.0 million were non-interest bearing deposits, the total cost of deposits decreased to 0.49% for the quarter ended September 30, 2020.
• Capital: The Company continues to maintain strong capital levels with tangible stockholders’ equity of $935.7 million for a tangible stockholders’ equity to tangible assets ratio of 8.41%.

Headline financials

Revenue & EPS history

Company chose to accelerate efforts to address highest risk loans by liquidating $67.5 million of those assets, thereby reducing the time and effort required to manage non-performing loans.