NASDAQ$OCFC

OceanFirst Financial Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

OceanFirst reported net income of $23.5 million for Q4 2019.

OceanFirst Financial Corp. reported a net income of $23.5 million, or $0.47 per diluted share, for the quarter ended December 31, 2019. Loan and deposit growth were strong, with record loan originations of $504.4 million and deposit increases of $107.9 million. The company completed acquisitions of Two River Bancorp and Country Bank Holding Company on January 1, 2020, which significantly increased consolidated assets, loans, and deposits.

  • Net income was $23.5 million, or $0.47 per diluted share, for the quarter ended December 31, 2019.
  • Record loan originations of $504.4 million drove total loan growth of $124.5 million.
  • Deposits increased by $107.9 million during the quarter.
  • Completed acquisitions of Two River Bancorp and Country Bank Holding Company on January 1, 2020, boosting consolidated assets to $10.2 billion, loans to $7.8 billion, and deposits to $7.9 billion.

Headline financials

Total Revenue

$63.4M

Previous: $61.8M+2.4%
EPS (adj)

$0.51

Previous: $0.54-5.6%
Loans-to-deposits

98.1%

Previous: 96.0%+2.2%
Capital Expenditures

$1.83M

Previous: $1.06M+72.2%
Free Cash Flow

$16.4M

Previous: $29.3M-43.8%
Net Income

$23.5M

Previous: $26.7M-12.3%
Operating Income

$26.6M

No prior period
Cash & Equivalents

$121M

Previous: $122M-1.5%
Total Assets

$8.25B

Previous: $7.52B+9.7%
Stock-Based Comp

$721K

Previous: $508K+41.9%

Revenue & EPS history

OceanFirst · Revenue · Quarterly

$63.4M

Q4 2019+2.4%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

OceanFirst · $81.4M total across 1 segment · Q4 2021

  • Loans
    $81.4M

Forward guidance

The company anticipates continued organic loan growth in 2020 and expects cost savings from the full integration of operations and the elimination of duplicate branches from the Two River and Country Bank acquisitions.

Tailwinds

  • Prospects for continued organic loan growth in 2020 are bright.
  • Solid loan pipeline.
  • Restructured contractual terms are expected to result in an annual cost savings of 48%, or approximately $1.6 million annually, beginning in January 2020.
  • Full integration of operations and the elimination of eight duplicate branches in Two River’s market areas in May 2020, resulting in cost savings in future periods.
  • Full integration of operations of Country Bank later in the year.

Headwinds

  • Changes in interest rates
  • General economic conditions
  • Levels of unemployment in the Bank’s lending area
  • Real estate market values in the Bank’s lending area
  • Future natural disasters and increases to flood insurance premiums

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.0%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.6%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+6.7%

Q4 2022

Best reaction

-8.3%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%-0.9%-1.9%
Q4 2025-3.6%-5.0%+0.8%
Q3 2025-5.8%-3.1%-5.8%
Q2 2025-2.3%-1.1%+3.4%
Q1 2025+0.3%+0.4%+0.7%
Q3 2024-0.3%-5.3%+6.9%
Q2 2024-6.8%-2.7%-11.6%
Q1 2024+4.9%+6.7%+11.1%
Q4 2023+6.5%+9.0%-4.7%
Q3 2023-4.2%-10.4%+1.9%
Q2 2023-2.7%-0.4%-2.8%
Q1 2023-8.3%-13.0%-19.7%
Q4 2022+6.7%+8.3%+17.1%
Q3 2022+2.9%+6.5%+10.4%
Q2 2022-1.0%-1.3%-4.0%
Q1 2022+1.3%+2.4%+7.5%
Q4 2021-0.2%+0.4%-1.0%
Q3 2021+1.4%+5.5%-4.0%
Q2 2021-0.3%+0.1%+11.8%
Q1 2021-1.5%-1.9%-4.7%
Q4 2020-0.6%+2.6%+18.9%
Q3 2020-4.8%-2.7%+3.9%
Q2 2020+1.1%-0.7%-4.1%
Q1 2020+6.6%+7.6%+5.4%
Q4 2019-2.2%-5.7%-11.8%
Q3 2019-0.3%+0.5%-0.8%
Q2 2019-0.3%-5.2%-19.8%
Q1 2019+0.8%+1.9%-1.5%
Q4 2018+0.8%+1.5%+8.2%
Q3 2018+3.1%+4.9%+1.9%
Q2 2018-0.3%-2.7%-1.4%
Q1 2018+2.3%-0.4%+9.3%
Q4 2017-2.0%-2.6%-4.3%
Q3 2017+3.9%-1.0%-4.2%
Q2 2017-1.9%+0.3%-7.9%
Q1 2017-3.0%-1.7%-7.6%
Q4 2016-0.5%-5.0%-1.7%
Q3 2016+3.7%+6.9%+24.0%
Q2 2016+0.5%-0.5%+4.4%
Q1 2016+0.1%
Q4 2015-0.2%
Q3 2015+2.3%
Q2 2015-2.8%
Q1 2015+2.3%
Q4 2014-1.0%
Q3 2014-1.8%
Q2 2014+1.4%
Q1 2014-2.7%
Q4 2013+1.0%
Q3 2013+3.6%
Q2 2013+3.1%
Q1 2013+2.0%
Q4 2012+3.2%
Q3 2012+0.8%
Q2 2012+1.8%
Q1 2011+1.2%
Q1 2012+2.2%
Q4 2010+1.2%
Q4 2011+1.2%
Q4 2009+1.2%
Q3 2011-4.1%
Q3 2010-4.1%
Q2 2011-2.4%
Q2 2010-2.4%
Q1 2010+2.0%

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