OceanFirst Financial authorizes new 3 million share repurchase program

Published 17/07/2025, 00:10
OceanFirst Financial authorizes new 3 million share repurchase program

RED BANK, N.J. - OceanFirst Financial Corp. (NASDAQ:OCFC), a $1.07 billion market cap regional bank with a notable 29-year history of consistent dividend payments, announced Wednesday that its Board of Directors has authorized a new stock repurchase program for 2025, allowing the company to buy back up to 3 million shares of its common stock, representing approximately 5% of outstanding shares.

The newly approved 2025 Stock Repurchase Program is separate from the company’s existing 2021 repurchase initiative, according to a press release statement.

"The repurchase program underscores our belief that OceanFirst shares represent a compelling investment opportunity," said Christopher D. Maher, Chairman and Chief Executive Officer of OceanFirst Financial. This view appears to align with InvestingPro analysis, which indicates the stock is currently undervalued, while offering an attractive 4.37% dividend yield.

Maher added that the program would enhance the company’s "capital deployment flexibility," enabling it to "respond opportunistically to market conditions while maintaining the capacity to invest in organic growth, strategic initiatives, and shareholder returns."

OceanFirst Financial Corp. is the holding company for OceanFirst Bank N.A. The company did not specify a timeframe for completing the repurchase program or provide details on the method and timing of potential share repurchases.

Stock repurchase programs typically allow companies to buy back their own shares from the marketplace, which can increase the value of remaining shares by reducing the number of outstanding shares. For deeper insights into OCFC’s valuation and financial health metrics, including additional ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, OceanFirst Financial Corp reported its Q1 2025 earnings, aligning with analysts’ expectations with an earnings per share (EPS) of $0.35. The company’s revenue slightly exceeded forecasts, reaching $97.91 million compared to the anticipated $95.68 million. OceanFirst experienced a 4% growth in net interest income and a 21 basis point expansion in net interest margin, despite a decrease in noninterest income by 8% to $11.3 million. The company also launched a Premier Bank initiative, aimed at enhancing customer experience and expanding its commercial loan pipeline to $376 million, with $417 million in loan originations. OceanFirst maintains strong asset quality with a low level of classified loans. The company anticipates further net interest margin expansion in the latter half of 2025, potentially surpassing 3%. Analysts from Piper Sandler and KBW have engaged with OceanFirst’s executives to discuss the impact of the Premier Bank initiative and the company’s recruitment strategies. OceanFirst continues to focus on strategic growth and remains optimistic about mid-single-digit loan growth and the potential for share buybacks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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