RED BANK, N.J., July 30, 2026 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:OCFC), the holding company for OceanFirst Bank N.A., reported a net loss of $3.0 million, or $0.04 per diluted share, for the three months ended June 30, 2026, compared with net income available to common stockholders of $16.2 million, or $0.28 per diluted share, in the same period a year earlier and $20.5 million, or $0.36 per diluted share, in the linked quarter. The loss was driven by $42.8 million in non-recurring merger-related expenses tied to the Flushing acquisition, as core earnings excluding those costs rose sharply from a year earlier.

For the six months ended June 30, 2026, OceanFirst reported net income available to common stockholders of $17.5 million, or $0.27 per diluted share, compared with $36.7 million, or $0.63 per diluted share, in the prior-year period.

Core earnings for the second quarter were $30.5 million, or $0.43 per diluted share, up from $17.7 million, or $0.31 per diluted share, a year earlier. Core earnings for the first six months of 2026 were $54.9 million, or $0.86 per diluted share, compared with $38.0 million, or $0.66 per diluted share, in the same period last year. Core earnings before income taxes and provision for credit losses, or PTPP, were $44.5 million, or $0.63 per diluted share, for the quarter and $78.9 million, or $1.24 per diluted share, for the first half, both above the comparable 2025 periods.

The company said the quarter reflected continued organic growth in its legacy portfolio, including a $154 million, or 2%, increase in commercial loans, a $101 million, or 6%, increase in non-interest bearing deposits, and $150 million of deposit growth from Premier Banking teams.

Net interest income rose to $120.7 million from $87.6 million a year earlier, while net interest margin increased to 3.05% from 2.91%. OceanFirst said the increase reflected the interest rate environment and the addition of Flushing, which contributed $19.1 million of net interest income during the quarter.

On June 1, 2026, OceanFirst completed its acquisition of Flushing Financial Corporation, the holding company of Flushing Bank. The deal is part of a broader wave of consolidation among U.S. regional banks, many of which have pursued mergers to spread fixed costs over a larger base and gain scale in competitive deposit markets. Flushing added $8.69 billion to total assets, $6.19 billion to loans and loans held for sale, and $7.44 billion to deposits. The transaction also added 30 retail branches across New York City and Long Island.

The company said it sold $1.31 billion of multifamily loans from the Flushing acquisition at 92.25% of face value and invested the $1.20 billion of net proceeds into highly liquid, investment-grade securities. The sale at a discount to par reflected elevated investor caution toward New York City multifamily loans tied to rent-regulated properties, a segment under pressure since the state's 2019 Housing Stability and Tenant Protection Act limited landlords' ability to raise rents and recapture costs. OceanFirst said the repositioning reduced commercial real estate concentration by about 50 percentage points to 381%, increased on-hand liquidity to 11.5% of assets, and lowered the loan-to-deposit ratio to 91.60%. CRE concentration has been a focal point for regulators and investors at mid-sized banks, particularly since the 2023 regional bank failures prompted closer scrutiny of balance-sheet risk. The allowance for credit losses increased to 1.29% of total loans receivable.

OceanFirst said it expects full integration of Flushing's operations and systems in the third quarter of 2026, with branch rebranding also scheduled for that period. Christopher D. Maher, chief executive officer, said the company was pleased with continued momentum in its core business and the addition of Flushing. He said the company expects synergies to be realized well before year-end and said the loan sale reduced exposure to rent-regulated properties in New York City.

The company recorded $42.8 million of non-recurring merger-related expenses in the quarter, representing $33.6 million net of tax, or $0.48 per share.

Provision for credit losses was $4.0 million for the quarter and $6.7 million for the first six months of 2026, compared with $3.0 million and $8.4 million, respectively, in the prior-year periods. Net loan charge-offs were $1.5 million for the quarter and $2.2 million for the first half.

Other income fell to $10.6 million from $11.7 million a year earlier in the second quarter, while operating expenses rose to $129.9 million from $71.5 million, largely because of merger-related expenses and Flushing-related operating costs recognized in June. For the six-month period, other income declined to $17.3 million from $23.0 million, and operating expenses increased to $203.3 million from $135.8 million.

The provision for income taxes was $496,000 for the quarter and $7.0 million for the first half of 2026. OceanFirst said the effective tax rate was affected by non-deductible merger-related expenses and a one-time revaluation of deferred taxes related to the Flushing acquisition.

As of June 30, 2026, total assets were $23.27 billion, up from $14.56 billion at Dec. 31, 2025, largely due to the Flushing acquisition. Total loans increased to $16.28 billion from $11.03 billion, while deposits rose to $17.76 billion from $10.96 billion. Time deposits increased to $4.21 billion from $2.47 billion.

OceanFirst said capital levels remained above well-capitalized regulatory thresholds, with an estimated common equity tier one capital ratio of 10.7%. Total stockholders' equity increased to $2.41 billion from $1.66 billion, driven by the Flushing acquisition and a $225 million strategic investment from affiliates of funds managed by Warburg, in exchange for about 9.6 million shares of common stock, 1.8 million shares of NVCE stock, and warrants to purchase 11.4 million shares of NVCE stock.

During the first six months of 2026, the company repurchased 376,277 shares for $7.1 million outside its authorized share repurchase program and donated 273,973 shares worth $5.0 million to the OceanFirst Foundation on June 1, 2026. As of June 30, 2026, 3,226,284 shares remained available for repurchase under authorized programs.

Book value per common share fell to $24.50 from $28.97, and tangible book value per common share declined to $18.19 from $19.79.

Asset quality metrics reflected the Flushing acquisition. Non-performing loans increased to $108.2 million from $27.8 million at Dec. 31, 2025, while the allowance for loan credit losses rose to 1.29% of total loans from 0.76%. OceanFirst said it identified $750.4 million of purchased credit deteriorated loans from Flushing.

The company said it will host an earnings conference call on Friday, July 31, 2026, at 11:00 a.m. Eastern Time. The direct dial number is (833) 461-5787, meeting ID 387420595. A replay will be available at and the webcast will be available at

OceanFirst Bank N.A., founded in 1902, is a $23.3 billion regional bank serving business and retail customers throughout New Jersey, New York, Long Island, and major metropolitan areas from Massachusetts through Virginia. OceanFirst Bank provides commercial and residential financing, treasury management, trust and asset management, and deposit services.