OceanFirst Swings to $16.5M Profit in 3Q After Merger-Driven Q2 Loss
OCFC is trading near its 52-week low of $15.6 (6.9% above the low).
Summary
OceanFirst posted third-quarter net income of $16.5M, or EPS of 17c, a sharp reversal from the $3M GAAP loss in Q2 that was driven by merger-related expenses, while Q3 core earnings were $46.9 million, or $0.48 per diluted share. The Q2 print also carried core earnings of $0.43 per share, so the key question is whether the Q3 profit reflects clean core earnings or another one-time item. Net interest margin rose to 3.18%, and third-quarter net interest income came in at USD 172.1 million; the board declared a $0.20 per share dividend payable Nov. 20. The prior quarter's asset quality was already a concern, with a significant increase in non-performing and substandard loans flagged in the last 10-Q, and that trend matters more than the headline profit for a bank trading near book. Warburg Pincus's $61.5M margin loan secured by 6.4 million shares, disclosed in August, remains an overhang on the shareholder base.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — OceanFirst's Q3 core earnings were $46.9 million, or $0.48 per diluted share, and net interest margin rose to 3.18%; the board declared a $0.20 per share dividend payable Nov. 20.
At the time of this announcement, OCFC was trading at $16.67 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $15.60 to $20.61. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.