OceanFirst Financial (NASDAQ:OCFC) Reports Q3 In Line With Expectations

Regional bank OceanFirst Financial (NASDAQ:OCFC) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 6.3% year on year to $103 million. Its GAAP profit of $0.30 per share was 15.7% below analysts’ consensus estimates.

Is now the time to buy OceanFirst Financial? Find out by accessing our full research report, it’s free for active Edge members.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect increased earnings, driven by strong organic loan and deposit growth while maintaining a robust commercial loan pipeline. We are also announcing a shift in our residential business where we have partnered with a national mortgage banking company to originate residential loans, materially reducing the number of employees and operating expenses as we move into 2026.”

Company Overview

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ:OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Unfortunately, OceanFirst Financial’s 2.7% annualized revenue growth over the last five years was tepid. This fell short of our benchmarks and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. OceanFirst Financial’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 4.9% annually.

This quarter, OceanFirst Financial grew its revenue by 6.3% year on year, and its $103 million of revenue was in line with Wall Street’s estimates.

Net interest income made up 87.8% of the company’s total revenue during the last five years, meaning OceanFirst Financial barely relies on non-interest income to drive its overall growth.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

OceanFirst Financial’s TBVPS grew at a mediocre 4.6% annual clip over the last five years. TBVPS growth has also recently decelerated a bit to 1.8% annual growth over the last two years (from $18.85 to $19.52 per share).

Over the next 12 months, Consensus estimates call for OceanFirst Financial’s TBVPS to grow by 4% to $20.30, paltry growth rate.

Key Takeaways from OceanFirst Financial’s Q3 Results

It was good to see OceanFirst Financial narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its EPS missed and its net interest income fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $19.33 immediately following the results.

So should you invest in OceanFirst Financial right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.