Oceanfirst Financial Corp (OCFC)

Price$19.47Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkShares sit near tangible book and at low forward earnings multiples, indicating a modest valuation discount.

OceanFirst Financial Corp. (Nasdaq: OCFC) trades at about 1.0 times June tangible book value, roughly 10.4 times consensus 2026 adjusted earnings and about 8 times 2027 estimates. Tangible book removes goodwill and other intangibles, making it a cleaner bank valuation benchmark than stated book. The shares also sit well below reported book value and carry an annualized dividend yield above 4%. Those signals support an Undervalued call, but the discount is modest because integration and credit risks remain.

Big pictureThe Flushing deal added scale and liquidity, but also increased funding, integration, and commercial real-estate complexity.

The June Flushing acquisition lifted assets to $23.27 billion and deposits to $17.76 billion. OceanFirst then sold $1.31 billion of acquired multifamily loans, reinvesting proceeds in liquid investment-grade securities and lowering the loan-to-deposit ratio to 91.6%. Debt obligations were $2.29 billion, led by $1.73 billion of Federal Home Loan Bank advances, a wholesale funding source that can reprice quickly. Commercial real-estate concentration remained high at 381%, and $4.01 billion of time deposits mature within one year.

Business strengthCore earnings and margins improved, while strong liquidity and capital give the enlarged bank meaningful resilience.

Second-quarter GAAP results showed a $3.0 million loss because merger expenses were unusually heavy, but core earnings were $30.5 million. Net interest income rose to $120.7 million and net interest margin widened to 3.05%. For a bank, cash durability means stable deposits, available funding and regulatory capital more than conventional free cash flow. OceanFirst reported $8.4 billion of liquidity and funding capacity, equal to 249% of adjusted uninsured deposits, while its 10.7% common-equity Tier 1 ratio remained above applicable capital minimums.

What could change the storySynergy delivery could unlock upside; weaker margins, credit losses, deposit repricing, or dilution could erase it.

Capital allocation remains shareholder-friendly but cautious: the board maintained its regular quarterly dividend, while authorized buyback capacity remains available and first-half repurchases were only for employee tax withholding. The $225 million Warburg Pincus raise strengthened capital but added common-equivalent securities and warrants, creating dilution. A bull case assumes integration savings emerge, margin stays near or above 3.0%, and credit costs remain modest. A bear case assumes margin falls below 2.8%, commercial real-estate losses rise, and dilution keeps returns below the cost of equity.

AI: News

Q2 Shows Integration NoiseMerger costs produced a reported loss, while core earnings and interest margins improved materially.

On July 30, OceanFirst reported a second-quarter net loss of $3.0 million after heavy merger-related expenses, but core earnings were $30.5 million. Net interest income rose to $120.7 million and net interest margin improved to 3.05%. Management said full Flushing systems integration and branch rebranding were scheduled for the third quarter, making cost-synergy delivery the key near-term earnings test.

Multifamily Loan Sale CompletedOceanFirst reduced rent-regulated New York exposure and shifted proceeds toward more liquid securities.

On June 29, OceanFirst completed the sale of roughly $1.3 billion of multifamily loans, mainly in the New York City area. The portfolio included about 1,400 loans, with $736 million tied to rent-regulated exposure. After the transaction, loans with more than half their units rent-regulated represented less than 2.5% of total assets. The move reduced a concentrated property risk and materially improved balance-sheet liquidity.

Flushing Merger ClosesThe acquisition expanded OceanFirst’s scale while a Warburg Pincus investment reinforced capital and increased dilution.

On June 1, OceanFirst completed its merger with Flushing Financial and simultaneously closed a $225 million strategic investment from Warburg Pincus affiliates. The combined franchise operated 71 retail branches and gained a larger New York and Long Island presence. The capital raise supported the transaction and liquidity, but it issued new common-equivalent securities and warrants, so shareholders must weigh stronger capital against a meaningfully larger potential share count.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$404.9M	$384.2M	$403.4M	$436.6M	$357.3M	$386.9M	$298.1M	$275.3M	$196.3M	$140.7M	$93.3M	$90.9M	$87.0M	$91.2M	$92.6M	$92.4M	$81.1M
Operating expenses	$296.2M	$245.9M	$248.9M	$234.9M	$226.9M	$246.4M	$189.1M	$186.3M	$126.5M	$102.9M	$60.8M	$57.8M	$59.2M	$52.4M	$52.7M	$53.6M	$50.5M
Net income	$71.0M	$100.1M	$104.0M	$146.6M	$110.1M	$63.3M	$88.6M	$71.9M	$42.5M	$23.0M	$20.3M	$19.9M	$16.3M	$20.0M	$20.7M	$20.4M	$15.7M
Net profit margin	17.53%	26.04%	25.79%	33.58%	30.81%	16.36%	29.71%	26.13%	21.64%	16.38%	21.79%	21.91%	18.77%	21.94%	22.39%	22.05%	19.31%
Basic EPSper basic share	$1.17	$1.65	$1.70	$2.43	$1.79	$1.02	$1.77	$1.54	$1.32	$1.00	$1.22	$1.19	$0.96	$1.13	$1.14	$1.12	$0.98
Diluted EPSper diluted share	$1.17	$1.65	$1.70	$2.42	$1.78	$1.02	$1.75	$1.51	$1.28	$0.98	$1.21	$1.19	$0.95	$1.12	$1.14	$1.12	$0.98

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Owners

Reported shareholders

Reference date Jun 30, 2026

10.29%of listed shares

BlackRock, Inc.9.94M shares · Jun 30, 2026

View holders

Top 20 reported holders of OCFC
Holder	% owned
BlackRock, Inc.	10.29%9.94M shares
WARBURG PINCUS LLC	9.91%9.57M shares
DIMENSIONAL FUND ADVISORS LP	4.75%4.59M shares
WELLINGTON MANAGEMENT GROUP LLP	4.26%4.11M shares
STATE STREET CORP	4.01%3.87M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.80%3.67M shares
T. Rowe Price Investment Management, Inc.	3.03%2.93M shares
TWO SIGMA INVESTMENTS, LP	2.49%2.41M shares
Invesco Ltd.	2.48%2.39M shares
GEODE CAPITAL MANAGEMENT, LLC	2.28%2.2M shares
SYSTEMATIC FINANCIAL MANAGEMENT LP	1.57%1.52M shares
ENDEAVOUR CAPITAL ADVISORS INC	1.39%1.35M shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	1.34%1.3M shares
MIRABELLA FINANCIAL SERVICES LLP	1.34%1.29M shares
GW&K Investment Management, LLC	1.25%1.21M shares
AMERICAN CENTURY COMPANIES INC	1.23%1.19M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.11%1.08M shares
Nuveen, LLC	0.95%913.18K shares
GAMCO INVESTORS, INC. ET AL	0.89%863.43K shares
JPMORGAN CHASE & CO	0.86%832.88K shares