OceanFirst Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>OceanFirst Financial Corp. has filed its 2023 annual report on Form 10-K, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

OCEANFIRST FINANCIAL CORP (OCFC) filed a Annual Report (10-K) with the SEC on February 23, 2024. OceanFirst Financial Corp. filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal executive offices are located at 975 Hooper Ave, Toms River, NJ. OceanFirst Financial Corp. was formerly known as Ocean Financial Corp. The SIC code for the company is 6021 (National Commercial Banks).

Why It Matters

For investors and stakeholders tracking OCEANFIRST FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of OceanFirst Financial Corp.'s financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. As a national commercial bank, the detailed disclosures within this filing are essential for understanding regulatory compliance, market positioning, and potential impacts of economic conditions on the company's balance sheet and income statement.

Risk Assessment

Risk Level: medium — OCEANFIRST FINANCIAL CORP shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded bank, which inherently involves medium risk due to regulatory oversight, market fluctuations, and financial operations.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand OceanFirst Financial Corp.'s performance and strategic direction for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-23 — Filing Date (Filed as of Date)
• 6021 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• OCEANFIRST FINANCIAL CORP (company) — Filer
• OCEAN FINANCIAL CORP (company) — Former company name
• TOMS RIVER (company) — City of business address
• NJ (company) — State of business address
• DE (company) — State of incorporation

FAQ

Industry Context

OceanFirst Financial Corp. operates within the National Commercial Banks industry, subject to federal and state banking regulations.

Regulatory Implications

As a commercial bank, OceanFirst Financial Corp. is subject to oversight from various regulatory bodies, including potentially the Federal Reserve, OCC, and state banking authorities, impacting its operations and capital requirements.

What Investors Should Do

1. Analyze the company's financial statements for revenue, net income, and asset growth.
2. Review the risk factors section for potential challenges and mitigation strategies.
3. Examine management's discussion and analysis for insights into business strategy and outlook.

Key Dates

• 2024-02-23: Filing Date — Submission of the 2023 Form 10-K
• 2023-12-31: Fiscal Year End — Period covered by the 10-K report

Year-Over-Year Comparison

This is the initial filing data extracted; comparison to prior filings requires more detailed data.

Key Financial Figures

• $0.01 — ange in which registered Common stock, $0.01 par value per share OCFC NASDAQ Deposi
• $13.5 billion — ompany had consolidated total assets of $13.5 billion and total stockholders' equity of $1.7
• $1.7 billion — llion and total stockholders' equity of $1.7 billion. The Company is subject to regulation b
• $48.1 million — itial public offering, has granted over $48.1 million to enrich the lives of local citizens b
• $10.20 b — the Bank had total loans outstanding of $10.20 billion, of which $6.30 billion, or 61.8%
• $6.30 b — outstanding of $10.20 billion, of which $6.30 billion, or 61.8% of total loans, were co
• $666.5 million — remainder of the portfolio consisted of $666.5 million of commercial and industrial loans, or
• $2.98 billion — dustrial loans, or 6.5% of total loans; $2.98 billion of residential real estate loans, or 29
• $250.7 million — ate loans, or 29.3% of total loans; and $250.7 million of consumer loans, primarily home equit
• $5.2 million — ans. At December 31, 2023, the Bank had $5.2 million of loans held-for-sale. Additionally, a
• $6.17 b — , or 62% of total loans, as compared to $6.17 billion, or 62% of total loans at Decembe
• $5.35 billion — total commercial real estate portfolio, $5.35 billion or 85.0% is considered investor-owned a
• $943.9 million — 85.0% is considered investor-owned and $943.9 million or 15.0% is considered owner-occupied.
• $750,000 — real estate loans secured in excess of $750,000 and for all other commercial real estat
• $500,000 — state properties for loans in excess of $500,000. The appraiser must be selected from th

Filing Documents

• ocfc-20231231.htm (10-K) — 3906KB
• exhibit231202310k.htm (EX-23.1) — 2KB
• exhibit232202310k.htm (EX-23.2) — 2KB
• exhibit311202310k.htm (EX-31.1) — 16KB
• exhibit312202310k.htm (EX-31.2) — 15KB
• exhibit321202310k.htm (EX-32.1) — 7KB
• exhibit97202310k.htm (EX-97) — 52KB
• ocfc-20231231_g1.jpg (GRAPHIC) — 109KB
• 0001004702-24-000011.txt (&nbsp;) — 19680KB
• ocfc-20231231.xsd (EX-101.SCH) — 104KB
• ocfc-20231231_cal.xml (EX-101.CAL) — 255KB
• ocfc-20231231_def.xml (EX-101.DEF) — 507KB
• ocfc-20231231_lab.xml (EX-101.LAB) — 1405KB
• ocfc-20231231_pre.xml (EX-101.PRE) — 919KB
• ocfc-20231231_htm.xml (XML) — 3842KB

Risk Factors

Item 1A. Risk Factors 26

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38

Cybersecurity

Item 1C. Cybersecurity 39

Properties

Item 2. Properties 40

Legal Proceedings

Item 3. Legal Proceedings 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41

[Reserved]

Item 6. [Reserved] 41

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 57

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 59

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 112

Controls and Procedures

Item 9A. Controls and Procedures 112

Other Information

Item 9B. Other Information 112

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 113 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 114

Executive Compensation

Item 11. Executive Compensation 114

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 114

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 114 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 115

Form 10-K Summary

Item 16. Form 10-K Summary 119

Signatures

Signatures 120 2 PART I

Business

Item 1. Business General OceanFirst Financial Corp. (the "Company") is incorporated under Delaware law and serves as the holding company for OceanFirst Bank N.A. (the "Bank"). At December 31, 2023, the Company had consolidated total assets of $13.5 billion and total stockholders' equity of $1.7 billion. The Company is subject to regulation by the Board of Governors of the Federal Reserve System (the "FRB") and the Securities and Exchange Commission (the "SEC"). The Bank is primarily subject to regulation and supervision by the Office of the Comptroller of the Currency (the "OCC") and the Consumer Financial Protection Bureau (the "CFPB"). Currently, the Company transacts the vast majority of its business through the Bank, its subsidiary. The Company has been the holding company for the Bank since the Company's initial public offering. Effective January 31, 2018, the Bank converted to a national bank charter and the Company became a bank holding company. The Bank's principal business is originating loans, consisting of commercial real estate and other commercial loans, which have become a key focus of the Bank, and single-family, owner-occupied residential mortgage loans. The Bank also invests in other types of loans, including residential construction and consumer loans. The Bank primarily funds these loans by attracting retail and commercial deposits. In addition, the Bank invests in mortgage-backed securities ("MBS"), securities issued by the U.S. Government and agencies thereof, corporate securities and other investments permitted by applicable law and regulations. The Bank's revenues are derived principally from interest on its loans, and to a lesser extent, interest on its debt and equity securities. The Bank also receives income from other products and services it offers including bankcard services, trust and asset management products and services, deposit account services, and commercial loan swap income. The Bank's primary sources of funds are deposits, p

Forward-Looking Statements

Forward-Looking Statements In addition to historical information, this Form 10-K contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe", "expect", "intend", "anticipate", "estimate", "project", "will", "should", "may", "view", "opportunity", "potential", or similar expressions or expressions of confidence. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those items discussed under Item 1A. Risk Factors herein and the following: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company's lending area, real estate market values in the Company's lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, changes in liquidity, including the size and composition of the Company's deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company's

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View this 10-K filing on SEC EDGAR