OceanFirst Financial Corp. announced net income available to common stockholders of $16.2 million, or $0.28 per diluted share, for the second quarter ended June 30, 2025. This marks a decrease from $23.4 million, or $0.40 per diluted share, in the prior year period and $20.5 million, or $0.35 per diluted share, in the linked quarter. Core earnings for the quarter were $17.7 million, or $0.31 per diluted share.
Net interest income increased by $1.0 million from the linked quarter to $87.6 million, and the net interest margin expanded to 2.91% from 2.90% sequentially. The total cost of deposits decreased by 31 basis points year-over-year to 2.06%. Total loans increased by $67.0 million to $10.19 billion, and deposits increased by $166.1 million to $10.23 billion from December 31, 2024.
The provision for credit losses for the quarter was $3.0 million, driven by net loan charge-offs of $2.2 million, a net reserve build due to a mix-shift into commercial and industrial loans, and an increase in unfunded credit commitments. Operating expenses increased by $12.9 million to $71.5 million year-over-year, primarily due to acquisitions, annual merit increases, and additional commercial banking teams.
During the quarter, the company redeemed all of its preferred stock for an aggregate payment of $57.4 million, which resulted in a net loss on redemption of $1.8 million. Chairman and CEO Christopher D. Maher noted loan and deposit growth, stable asset quality metrics, and modest net interest income and margin expansion. The commercial loan pipeline increased significantly by $648.1 million to $954.8 million.
The Board of Directors declared its 114th consecutive quarterly cash dividend on common stock of $0.20 per share, payable on August 15, 2025. The company expects to continue building on this momentum from its commercial banking teams with a record commercial loan pipeline and new deposit relationship opportunities.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.