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Oceanfirst Financial
(NASDAQ:OCFC)
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Rating:57Neutral
Price Target:
$17.50
â–¼(-7.21% Downside)
Action:Reiterated
Date:08/08/26
OCFC scores in the mid-range primarily due to pressured core financial performance (multi-year margin and ROE compression despite positive revenue and cash flow) and only neutral technical momentum. Offsetting these are a relatively positive earnings-call outlook centered on margin expansion and cost reductions post-integration, plus a supportive dividend yield, though the elevated P/E and merger-related GAAP impacts keep the overall score from moving higher.
Positive Factors
Expanded Banking Scale
The Flushing acquisition materially expands OceanFirst’s assets, lending base, deposits, and branch network. Greater scale can broaden customer relationships, support operating leverage, and provide a larger platform for commercial banking growth once integration is substantially complete.
Negative Factors
Compressed Profitability and Returns
The sustained decline in net margin and return on equity shows that OceanFirst’s current asset base is producing weaker earnings than in prior periods. Even if revenue grows, subdued profitability can limit internal capital generation and make the recovery dependent on successful margin and cost initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanded Banking Scale
The Flushing acquisition materially expands OceanFirst’s assets, lending base, deposits, and branch network. Greater scale can broaden customer relationships, support operating leverage, and provide a larger platform for commercial banking growth once integration is substantially complete.
Read all positive factors
Oceanfirst Financial (OCFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend Yield4.79%
Average Volume (3M)1.18M
Price to Earnings (P/E)19.7
Beta (1Y)0.86
Revenue Growth10.46%
EPS Growth-39.66%
CountryUS
Employees926
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.85
Shares Outstanding96,645,220
10 Day Avg. Volume1,179,404
30 Day Avg. Volume1,183,652
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)0.62
Price to Sales (P/S)1.57
P/FCF Ratio12.96
Enterprise Value/Market Cap2.10
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit8.91
Enterprise Value/Ebitda42.74
Forecast
1Y Price Target
$19.50Price Target Upside3.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.75
Revenue Forecast (FY)$593.82M
Oceanfirst Financial Business Overview & Revenue Model
Company Description
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers in the United States. The company accepts deposit products, such as money market a...
How the Company Makes Money
OceanFirst Financial primarily makes money through its banking subsidiary by earning interest and fees. Its largest earnings driver is typically net interest income: the bank collects interest on loans and other interest-earning assets (such as ce...
Oceanfirst Financial Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a constructive outlook: management reported strong core operating performance (core EPS +39% YoY, NII up 25% QoQ, NIM expansion), meaningful scale and capital support from the Flushing acquisition and Warburg investment, and clear near-term guidance for margin and expense improvement as integration proceeds. Key negatives were the GAAP loss caused by substantial one-time merger expenses, an allowance build and purchase accounting marks that diluted tangible book value, and elevated reported criticized loan metrics (driven by accounting treatment). Management emphasized that many adverse metrics are non-underlying (purchase accounting) and provided concrete cost-save and NIM uplift targets, leading to a net-positive operational trajectory.Positive Updates
Transformational Acquisition Adds Scale
Completed acquisition of Flushing Financial on June 1; added ~$8.7B total assets, ~$5.0B loans, ~$7.4B deposits and 30 branches, bringing combined franchise to ~ $23B in assets. Concurrent $225M strategic investment from Warburg Pincus.
Negative Updates
GAAP Net Loss Driven by Large Non-Recurring Merger Costs
Reported GAAP net loss per diluted share of $0.04 driven by $0.47 per share ($33.6M after-tax) of non-recurring merger-related expenses; GAAP operating expenses were $130M and included ~$43M of merger-related costs.
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Q2-2026 Updates
Positive
Negative
Transformational Acquisition Adds Scale
Completed acquisition of Flushing Financial on June 1; added ~$8.7B total assets, ~$5.0B loans, ~$7.4B deposits and 30 branches, bringing combined franchise to ~ $23B in assets. Concurrent $225M strategic investment from Warburg Pincus.
Read all positive updates
Company Guidance
Management updated pro forma 2H‑2026 guidance: loans and deposits are expected to grow 1–2% from June 30 by year‑end, total deposits stood at $17.8B (up $6.6B in the quarter, including $7.4B from Flushing) and non‑interest‑bearing deposits exceeded $100M; net interest margin is forecast to expand to 3.07%–3.12% in Q3 and 3.09%–3.14% in Q4 (no rate change modeled) with a 2027 margin target near 3.20%, and net interest income should benefit from a full quarter of the combined franchise (loan accretion ~ $1M in June, ~ $5M expected in Q3 and roughly $16–18M annualized thereafter). Other income is expected to be $12M–$16M per quarter; GAAP operating expenses are guided to $120M–$125M in Q3 and $110M–$115M in Q4 (including a ~ $2M one‑time digital platform cost), with management targeting a run‑rate closer to $100M and continued cost‑savings/operating‑leverage through 2027. Credit and capital metrics noted: NPLs ex‑ACD 0.33% of loans, ACL 1.29% of loans, annualized net charge‑offs ~5 bps, criticized/classified loans 3.12% of loans, normalized effective tax rate ~28%, CET1 ~10.7%, book value per share $18.19, and the quarterly cash dividend maintained at $0.20.Oceanfirst Financial Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
50
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 707.29M | 655.60M | 687.95M | 636.96M | 485.30M | 388.84M |
| Gross Profit | 388.06M | 357.19M | 372.12M | 381.04M | 423.83M | 363.92M |
| EBITDA | 80.86M | 106.45M | 145.20M | 153.17M | 210.40M | 157.12M |
| Net Income | 47.90M | 70.98M | 100.06M | 104.03M | 146.60M | 110.08M |
Balance Sheet | ||||||
| Total Assets | 23.27B | 14.56B | 13.42B | 13.54B | 13.10B | 11.74B |
| Cash, Cash Equivalents and Short-Term Investments | 2.34B | 1.37B | 951.12M | 907.61M | 625.59M | 773.20M |
| Total Debt | 2.29B | 1.63B | 1.26B | 1.05B | 1.48B | 349.81M |
| Total Liabilities | 20.86B | 12.90B | 11.72B | 11.88B | 11.52B | 10.22B |
| Stockholders Equity | 2.41B | 1.66B | 1.70B | 1.66B | 1.58B | 1.52B |
Cash Flow | ||||||
| Free Cash Flow | 112.68M | 79.51M | 84.68M | 116.55M | 229.55M | 117.93M |
| Operating Cash Flow | 121.66M | 87.21M | 92.24M | 124.26M | 250.45M | 159.97M |
| Investing Cash Flow | -858.50M | -1.18B | 106.40M | -488.00M | -1.32B | -1.48B |
| Financing Cash Flow | 840.29M | 1.10B | -228.75M | 349.47M | 1.01B | 223.99M |
Oceanfirst Financial Technical Analysis
Negative
18.86
Price Trends
17.71
Negative
18.30
Negative
18.26
Negative
Market Momentum
-0.40
Negative
49.63
Neutral
84.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCFC, the sentiment is Negative. The current price of 18.86 is above the 20-day moving average (MA) of 16.34, above the 50-day MA of 17.71, and above the 200-day MA of 18.26, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OCFC.
Oceanfirst Financial Risk Analysis
Oceanfirst Financial disclosed 17 risk factors in its most recent earnings report. Oceanfirst Financial reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oceanfirst Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.87B | 13.83 | 9.50% | 2.34% | 13.64% | 169.34% | |
73 Outperform | $1.64B | 11.27 | 9.42% | 2.29% | 24.33% | 130.03% | |
71 Outperform | $3.03B | 9.68 | 11.00% | 4.13% | 3.72% | 35.18% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $805.38M | 15.51 | 7.65% | 0.44% | 10.63% | 59.91% | |
63 Neutral | $603.84M | 15.76 | 4.84% | 4.73% | 1.22% | 24.10% | |
57 Neutral | $1.65B | 19.73 | 2.59% | 4.79% | 10.46% | -39.66% |
* Financial Sector Average
OCFC
Oceanfirst Financial
16.71
-1.10
-6.19%
DCOM
Dime Community Bancshares
42.73
16.16
60.84%
KRNY
Kearny Financial
9.30
3.12
50.41%
PGC
Peapack-Gladstone Financial
45.43
18.56
69.09%
PFS
Provident Financial Services
23.24
5.07
27.89%
CNOB
ConnectOne Bancorp
32.69
9.02
38.08%
Oceanfirst Financial Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
OceanFirst Financial Posts Quarterly Loss Amid Core Strength
Negative
Jul 31, 2026
OceanFirst Financial Corp. reported a net loss of $3.0 million, or $0.04 per diluted share, for the quarter ended June 30, 2026, reversing net income of $16.2 million a year earlier and $20.5 million in the prior quarter, while six‑month net...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.