OceanFirst Financial Corporation Reports Strong Second Quarter 2026 Results
OceanFirst Financial Corporation, a leading financial institution in New York City and Long Island, reported impressive second quarter 2026 results, driven by the successful integration of its transformational acquisition of Flushing Financial Corporation. On July 31st, 2026, the company's President, Joseph Lebel, and Chief Financial Officer, Pat Barrett, shared the highlights of their financial performance with investors during a conference call.
The second quarter marked a significant milestone for OceanFirst, as it reported a net loss of $0.04 per fully diluted share, primarily due to non-recurring merger-related expenses. However, on a core basis, earnings per share were $0.43 or $30.5 million, unchanged from the prior quarter and up 39% from the prior year. Pre-tax, pre-provision core earnings grew by 29% from the prior quarter to $44.5 million.
This impressive performance demonstrates the company's ability to execute its multi-quarter journey towards peer profitability levels. The integration of Flushing Financial Corporation, which was completed on June 1st, has been a key driver of this growth. The acquisition added approximately $8.7 billion in total assets, $5 billion in loans, and $7.4 billion in deposits, along with 30 retail branches across New York City and Long Island.
OceanFirst's strategic investment from Warburg Pincus was also a significant milestone, providing a $225 million boost to the company's capital base. The proceeds of the sale of $1.3 billion multifamily loans acquired from Flushing were reinvested into highly liquid investment-grade securities, further strengthening the company's balance sheet.
The integration planning is well underway, with full systems conversion and rebranding expected by the end of the third quarter 2026. This strategic combination has already yielded competitive wins in both talent and customer acquisition, and OceanFirst remains confident in its ability to achieve the cost savings and returns outlined at the transaction announcement.
OceanFirst's organic growth strategy continues to be reflected in its underlying results this quarter. Loan originations for the quarter totaled $642 million, an increase of 50% from the prior quarter, with commercial organic loan growth standing at approximately $154 million or 2% from the prior quarter. The C&I business grew 8% on an annualized basis, reflecting the continued momentum from recruitment efforts in 2024 and 2025.
Total deposits grew by $6.6 billion during the quarter to $17.8 billion, driven by the acquisition of Flushing's deposits. Excluding Flushing, deposits declined modestly, primarily due to seasonal outflows in government deposits and a reduction in brokered deposits. However, non-interest-bearing deposits increased by 6% during the quarter.
OceanFirst's Premier Bank deposits grew by $150 million, while the cost of deposits dropped by 17 basis points. Non-interest-bearing deposits crossed the $100 million mark during the quarter, demonstrating the company's ability to attract and retain customers.
The company also announced a quarterly cash dividend of $0.20 per common share, marking its 118th consecutive quarterly cash dividend. This strong performance demonstrates OceanFirst's commitment to delivering value to its shareholders while executing its strategy for long-term growth and success.
