OceanFirst Financial (OCFC) 19 Jan 242023 Q4 Earnings call transcript

Company Profile

Participants

Alfred Goon	executive
Christopher Maher	executive
Joseph Lebel	executive
Patrick Barrett	executive
Daniel Tamayo	analyst
Frank Schiraldi	analyst
Michael Perito	analyst
David Bishop	analyst
Matthew Breese	analyst
Manuel Navas	analyst
Christopher Marinac	analyst

Call transcript

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Operator

Hello, everyone, and welcome to the OceanFirst Financial Corp. Q4 '23 Earnings Release, and thank you for standing by. My name is Dacy, and I'll be coordinating your call today. [Operator Instructions] I would now like to hand over to your host, Alfred Goon from first station to begin. Alfred, please go ahead.

Alfred Goon

Dacy. you, Thank welcome Call. and OceanFirst Quarter Fourth Good to Earnings XXXX morning, the I Development of SVP am Goon, Alfred Corporate and Relations. Investor

our kick the on we remind related off call, supplement quarterly that earnings we'd and earnings be company website, Before can release like the everyone found to oceanfirst.com.

of complete any those to our XX-K actual to Thank now today filings, our discussion and may refer Chief including statements Forms All and measures. those results to and to forward-looking you, will Executive cause statements that could and remarks financial over forward-looking factors a I participants Maher, call differ statements. in X-K, turn Chairman SEC for XX-Q Officer. Our Christopher may found contain from the non-GAAP should refer and

Christopher Maher

to Lebel; Good able Pat Chief conference call. Barrett. Alfred. morning, been our quarter by you joined and Joe I'm thank and our XXXX all fourth you, President, our This earnings join to Officer, Thank Financial morning,

the interest outlook your This morning, appreciate you. this financial about brief remarks and the discuss provide and some with in the the to filed release quarter and We business. performance questions. results we'll connection for We for may slides our we earnings After refer throughout to with our to the our call. performance your taking operating our in the discussion, regarding forward color look opportunity

of for results $X.XX. share financial the Our per GAAP fourth include earnings quarter diluted

many meaningful in to hold expenses We're efficiency. special work the income $X.X of $XX.X improvement Operating in prior that operating continue to interest flat assessment make million expenses net million. the million. FDIC resulted initiatives pleased to strategic to linked will decreased decrease year. million, effort the for excluding to reflect earnings $XX to the we bank's of million, expenses a of This Our have as $XX.X representing modest every XXXX executed quarter compared $XX.X decreased a

margin our pressure the to income in cost substantial pressure margins by a below modestly indicating funding. and in prior throughout continued linked may impacted quarter, some deposit resulted of quality interest and to stable margins, allowing modest XXX%. net but efforts to CDs, in possible margin efforts were the to resulting abate, decline of it of interest deposit on deposit continues brokered linked stabilize, from XXXX. XX% increased pressure placed ratio the pace betas improve deposits that The in XX% quarter mix shift These net is results a slowdown quarter loan-to-deposit balances Fourth expand to another in increases. Deposit

various build capital brokered which through below all broker time book strategy per deposits. to common protect pricing X or competitive with Our Tier deposits increasing the to levels our continued million, equity channels time X%, share million keeping $XXX excluding to loan-to-deposit decision our to continue ratio base, in $XX.XX. Capital has while $XXX Resulting in XX.XX% tangible value to continued reduce by and XX%. increased ratio our growth deposit

the of GAAP quarter. a the XX% company's Board cash company Turning per in to represents quarterly did any share. repurchase consecutive capital is This fourth quarterly cash of XXXth The common dividend The approved not and dividend shares management. $X.XX earnings.

time expenses, capital our our strategic may program diversify on to quarter. executed share base XXXX, bolster company and this position. Despite industry operating deposit tumultuous the the our However, and reactivate in company strengthen repurchase a the the goals for improve

responsible by prudent is the continue discipline to well focused shareholder Looking management. sheet and create expense on ahead growth, remaining to XXXX, positioned to balance company value

regarding At fourth performance our some quarter. Joe this I'll provide point, the to the turn to call details over during more

Joseph Lebel

runoff X% to balances declined our deposit by approximately continued continued Thanks, grow, planned Nonmaturity increasing reflecting quarter, X%, brokered overall deposits linked approximately Chris. while CDs. of

our the our and X%. composition organically without mix brokered growing to with deposit couldn't this deepen dropping CDs We deposits very growth industry. and environment proven and the strategy to deposits accomplished deposit percentage our change successful has demonstrates and deposits relationship grow to for have has cost a challenging been the of what total competitive during higher year million for the Our ability to of the $XXX

On the combined reduced we loan origination growth pricing continue from to result discipline. tempered see a demand customers our side, of as with

and in goes a seen mid-single-digit in grow at a pipelines as the accelerate demand resurgence year, may calling uptick but for half have the We an lower be customer anticipate Growth levels year the on. in of XXXX. potentially loans and outlook deposits with in first slight to

metrics with quality total X.XX% and remained and loans, respectively. only representing assets classified strong of criticized Asset nonperforming and loans X.XX%

zero charge-offs, reported rate points. net annualized our basis nominal a This quarter, to bringing charge-off year full essentially we X

With the review call that, to Pat to outlook. I'll and expense turn over margin

Patrick Barrett

X.XX%, Thanks, and million Joe. and Net interest reflecting deposit growth. were income respectively, costs $XX.X associated margin funding with higher

of terms down the on asset hesitate core two and NII, quarter hopeful linked see have as through through with we'll stabilize XXXX. begin Based compression of noninterest XX% quarter. that pleased in million. of the funding on of that and depends quarterly expand the continuation move margins exact put expenses stabilizing we're expectations that continue potentially we're another and we're rate so liquidity first net half timing. of as that we But $XX.X stability and pinpointing may Chris year. XX% funding, this a of to first to half $XX nearly in reflect in betas occur deposit seeing and through many variables, the of to we run quarters very by exact for we'll our degree we grow consecutive move way, driven As We're in million see I confidence income, margin hopeful Said on interest the assuming costs approximately quarter to the noted, modest growth cycle-to-date reported a

that we excludes to by driven XXXX and company-wide core quarterly some make guidance related assessment. which special directly expense We'll Our run and volatility efforts in Note expected. line expense our in hold should to our the the fourth investments, be with operating rate, quarter noninterest XXXX. million during rate is stated flat FDIC expenses run every effort fourth XXXX to $X.X quarter executed

continue further to to explore remains quarter of leverage. line prior in opportunities this tax the improve going remain and we for XX% operating periods our in to expect with Effective rate forward. Additionally, guidance, we range and

very an Chris mentioned expectations it share organic XX%. these Finally, with to shouldn't strengthened in above XX.XX%. in repurchase to growth ratio surprise growth the remain At with resuming the CET as activity the and our near ratio as see modest you earlier, appreciably with company capital CETX levels estimated comfortable term, we

begin At the we'll question-and-answer of the this portion call. point,

Operator

[Operator first Our Daniel James. Instructions] Raymond from Tamayo question today from is

Daniel Tamayo

for you. just the and Thank this Good year. the margin stable on first, everybody. forecast perhaps expansion morning, Maybe

the just that assumptions just First, into is -- then think your each much baked margin And of curious margin of to will on are rate how in terms any in react point the XX rate what that? -- reacting terms like is how into the this cuts baked assumption you cut? year what basis

Patrick Barrett

Pat. I'll take Dan, that. it's

expectations Street and the that. So X of says And with the quarter, aggressive ] year-end. [ a so has what midyear, more go third assuming we're than -- much kind cuts assuming we're obviously, we rate Fed

or rate be talking meaningful not about that $X us, but it extent amount. that by might the in magnitude, larger We're faster the million for cuts occur something could to range. a So the in needle move

of So the we it a get point tomorrow, that. year half you're in moves out see not XX cut probably meaningful slowly. And coming anything of rate basis to unless first going the

our moved of asset kind We've to position sensitivity neutral we're where a fairly right now. and

down we're to an expecting. or we probably unless see magnitude going rates, whether than anyone's get upgrades order it's of not just So larger

NII You're not going volatility. to lot see a of

Daniel Tamayo

impact assumption other the assumption back just kind for pipelines accelerating much for of rate factors? around Okay. does loan year? half in the Or of And more or is cuts how the the that growth

Christopher Maher

it's Dan, Chris.

of growth think of we things. our that spent assumption that credit both about great those on dynamics bolstering risk feel the very we understanding of loan the majority I kind had XXXX making good sure portfolio, capital of a the and in we and is

build to rate. our start to historical towards going we're back So slowly growth

decision. to obviously, capital So as during mid-single only with that's our The situationally customers. you rate we're the said, a dependent. now Joe want with leave it's dependent It's a is, that it not that I'll generating and deploy caveat digits year, decision

have out get We to certain our of got credit we've quality return and dynamics that loans. standards

going So to to to out we're grow company. do we're not to chase going of number. the the grow we're to going improve to a looking be the And portfolio, it We're grow to but loan dynamics going prudently.

Daniel Tamayo

loan growth reduce ratio think maybe growth be in I be to XXX% get expect core you appreciate even growth accelerates, still deposit guess, we year. think, put, loan I as Chris. I deposit you you guess, fund this out able I able the to the that to that, overfunded, you'd loan-to-deposit as loan But And do and years? with to ratio

Joseph Lebel

Yes. Joe. exactly Danny, That's right. it's

I loan as think growth. deposit we we see see growth

that expect continued loan we with we'll fund We deposit growth core growth fully deepen relationships. as

the we sort for pretty some a QX a I saw bit. clients their think through, well will see in as of shoots the that you green way have starting but seeing uptick go, I pipeline through in we're So are to us comfortable, mean little well. ways we're navigating and to bode

Operator

today Frank is from Schiraldi from Sandler. next question Piper Our

Frank Schiraldi

-- quarter, average being Given you're like sounds the that the deposit still that spot could the we rate cost stabilize? of is there a the half we drop deposits cost be that year before can and slightly here. some side? at of -- potentially below already thinking could to margins the it cost closer the Or NIM deposit increase be see we're we in the stabilization And first on is for

Christopher Maher

the businesses of to Frank, be of how going Yes. predicting the really cautious, because We very the perception consumers to that deposit cost lower -- unknown rates. and it's about respond anything are would

different lot I have think about may a discussion and what rates. want So rate. there's expectations for businesses of Consumers about they

quarter, in what think fourth during amount quarter in of of course the mechanism the the the CDs. is off we saw substantial rolled brokered a you I

the spot CDs. not the all those end reflect cause brokered quarter at would that So the to of rate

diminish So bit That over that was impact time. kind impact. of will little the a

Frank Schiraldi

in terms guide -- we way immediate Great. assume? Are as you mentioned three getting to the neutral rate of does guys in Or that some then betas And your deposit rate is to close here do getting you the cuts down to modeling sensitivity. effect? these lag deposit expecting beta? for an Okay. rate What on And there reaction assume you cuts. see on for what Pat,

Patrick Barrett

effect. we definitely lag than a up mean be would lag part way effect the shorter for that. it dramatically and most think on I saw that we would can't saw imagine we expect I X-year the a

competing of perspective. still about on rate going a people from year be is cost funding deposit right expecting XXXX think still I are mean, So -- deposits core I now. our to frankly, higher just in of for baked we're all kind And

Christopher Maher

it's a that right, Frank, I'd love the think supply you to and there who deposits Chris. now. add of lot their if industry, portfolio are grow deposit kind would demand and right banks for of about

rates the among competition Fed the expect may may you banks although remain for So rate see come brisk. down, we cuts to make and overall deposits

I see, fair said, you're Pat as So going a think to lag.

Frank Schiraldi

Okay. pick idea most is understanding the Is guide that guide start bit just the sort a of looks as scenario on on loan low you the sorry -- And it, call. deposit to little that through we like? terms that, single here? sit and the the if given could -- so front, digits my about here I But And then like is talked in And the growth lastly year. for the the year, pretty missed deck. the that broad the of what growth environment the but guys is in then up likely

Joseph Lebel

Joe. it's see but the out I slow to Frank, performance. see a little think we that conversely, likely That's a we Yes. most little tend that could scenario. performance could

little choppy lot a of There's a bit. we're a sort it's noise, conversations of -- lot So out of having. there

to pipeline As still up, to I get mentioned earlier, the fruition. but is got

fast is So consider what I ramps up definitely think how we more growth. to normalized question be environments. The to see it we're positive going to

Frank Schiraldi

dollar? deposit a the the talk can And of environment, about Where the any And strategy just you it's the incremental deposit geographically just dollar to bring quite in opportunity Chris, competitive. range to you're sort incremental of is in bring lastly, using obviously, Okay. mentioned competitor. given then that here or you curious, size

Christopher Maher

I'll and make in I'll Joe follow well. as a ask to comments, few

of we've platforms bankers actually of the of talked all key and a reduced we we've hiring apples-to-apples much the reduced you not we that would some about reinvest One that have think. then while both in expenses, of is And treasury dedicated more couple than save things operating that. have to kind of in them and

maybe year. the a you've So about this added talk Joe, little bit bankers

the expenses of despite having kind we down. So brought

Joseph Lebel

Yes.

So all added C&I the XXXX bankers little footprint. X Frank, throughout color all We've a here. in

being then the Philadelphia, So some historically, Boston, and -- And Jersey, the a I of point ground they've couple in And bringing for running us, last I some back. cash core going so for mention, and York. getting year, New driven, other of rates New ourselves deposits. deposit the we the think offer been out hitting have I'd of that that our didn't competitive in many had. dedicated cash And clients we've excess

So deepened accounts. as well as some with operational relationships we've existing clients new adding

think and the I the a been on the well, to bank. both deposits have the one retail testament of So reasons done it's in commercial

Frank Schiraldi

color. the Okay. I Great. appreciate

Operator

Michael today next from is question Perito KBW. from Our

Michael Perito

call costs reengaging have necessarily think better spreads maybe incremental bigger which deposit about thoughts asked right, on kind like that sounds it's starts kind where, starting us think seeing can where relative maybe back bottom to Or of being stabilize today, just become in updated also new asking, it kind impact, give that last too consolidated an $X.XX loan view the But quarter? I NIM I a of early incremental particularly long-winded might consistently sounds rise? to XXX more with of rising. credits commercial Pat, yield average the to want -- you are And like of the updated yield at of I origination. question that 'XX, blended commercial to as we get quarter, NIM way of compounds why in as fourth kind stabilize, a kind half on today the it kind you like to it credit ask that the similar originated the to of is you of still just growth that

Patrick Barrett

on rise renewals. seeing definitely new actually that and on We're money

in when think we the originations at quarter, on an you -- were of originating caution we XXX. small, the shouldn't you I'll So about I are had that But them. numbers extrapolate rate average fourth

still on lot are our it a definitely X, Our we smaller normally so portfolio years And pipeline to it's a it's have pipeline pricing then getting was But that grown, X.X yields and than continue the at we're we're although for role. originations. year, around the ago. is looking

quarter renew. they to reprice into So And of we'll have that somewhere are billion and going going mature in those loans $X.X the they are neighborhood per as to roll. terms are of whatever

in definitely have place we in NIM environment. all changes incremental in the the or to see need So notwithstanding to pieces competitive very expansion, growth deposit customer behavior a fund

Michael Perito

guide. then And Any initial thoughts noninterest of the in in helpful. see the I kind necessarily That's which didn't income, around terms of anywhere just XXXX outlook.

maybe Just pieces, probably is of obviously, swaps there mortgages. key a couple

think Just your any contribution transpire over about thoughts in the what we the year as like? budget about looks might what

Christopher Maher

impacted be and main we could very XXXX be in by look, So the sale there's mentioned, insurance that business guidance we the quantify But are, and as gain on you. as you for swaps, provide income three also -- we have residential difficult title but that own an areas well. opportunity, wouldn't to volumes

gain unit on to well So insurance were much imagine you it's sale which over how we 'XX could title be in the for revenues. income, certainly tell early really course expect volumes of 'XX, swap units bode they increase. than will far higher to should XXXX, in too and the But

Michael Perito

just lastly, I'll and That's helpful. Chris. then And back. step

just I a maybe Just little deeper, a layer on you go on it just know around -- buybacks. bit commented already, to

guys to of pretty why is year. underneath certain were clear a didn't build-liquidity now. in was the in of much feels build-capital footing I It elect them kind you like use think It more 'XX. you terms you

Or provide growth million thoughts about great. would buyback today, more some might loan color kind to expanded back mean remaining, think route heavy are maybe of bit about half any $X.X in deploy how is to more be you opportunity the to I be time we a authorization As of willing the shares? little particularly 'XX? the any kind now it's just attractive there if that capital

Christopher Maher

into on. you're careful you and you liquidity make have period lean anything that want your extra you a spot Thanks The against like that be 'XX, your for you to get to When exactly that did understand we be in risk positions, you position and up. -- would bringing understand a don't sure capital.

we So the course really up year. built capital We're happy and capital over maintain to of with it. where the now, expect we is

than can that if will extent more takes these maintain do think, through relationships, always I with a this, expect our capital of interestingly, that's math, around the that's time math kind But we deploy to a we we or capital. To customer straightforward. little to capital ratio. the neutral valuations, little can And about proposition. growth thing the So repurchases pretty best more we is grow back-ended do the be a would as

we or the below But so So repurchase And can't whether has to on benefit if book value neutral priority. have certainly impact we per advantage that's always fine. customer, by of. have buybacks. the our earnings to -- incremental bringing take a is we're new We'd a And make get doing rather doing an great clients that's the trading customer, share. a can same opportunity to about

Michael Perito

the Stay and question. my taking guys. safe I storm, appreciate you Helpful with

Operator

is Our next Bishop Hovde from question David from Group.

David Bishop

I in -- runoff? seasonality you where of there's of run there world, the OCS products? bigger if of to that another in terms end don't they view terms JPMorgans And OceanFirst product, are noninterest-bearing remind them other if it the you is off the track in go, know continue of us any may the be in of challenging in change any to retaining -- question Has quick deposits. a been you Chris, noted quarter terms of some

Christopher Maher

the the part. keeping bank the here for we're No, at certainly most Yes. deposits

taken The to is that want move money about we've get other to bring some the The customers news bad sometimes is in you mentioned, accounts Joe noninterest-bearing into deepen opportunity good accounts. they As from to other their relationships. news banks. of

big losses So seeing a we're a any it's or small not bank. anyone, to of whether magnitude competitive bank

captured driving what's are we it. lot And accounts noninterest-bearing that we designation. really that's forward, also of as the So mention look have not a that transaction -- would I in

of truly So we are have checking, a that interest-bearing transactional accounts. lot

been So important us, important and that's to number more number to transaction is noninterest account while us, the the stable. pretty is

Patrick Barrett

it's -- do Pat. I'd David, tends -- just just it be intraquarter. to seasonality, we but into have I'll throw

we year-end then levels every very of October our kind and is changed instead probably it's if but XX, So trough, business. would peak to government it's -- see noninterest-bearing which you of see wait quarter the today, a

So the come just us inflows does quarter report. to for that out that time again, drive throughout back in

David Bishop

then I loans And it. -- color was substandard some segments? in modest commonality curious, any don't Got that I uptick any increase? if there behind know noticed in Just a

Christopher Maher

nothing was concern. pre-pandemic. there It's of and any below the theme of our of no long-term around level would a the terms substandard note -- below average The in of well trend remains there's that Yes, X%. level cause I would that of note

of commonality this that reversion to segment really portfolio no no right? of any large cycles just a among there's that. them. concern is normalcy, and So gives and kind But us go all That credits through the

Operator

from is Matthew from Our Stephens, next question Breese Inc.

Matthew Breese

and me is And deposit reduction deposit is the for the is what Pat. for by stability, of that in there assumption is calling NIM one for costs maybe within expectation which lower for costs Taking any peak the end sort of year-end? year? first throughout the guide, The

Patrick Barrett

adjustment runoff today. we that some that sweep successful we bit -- we're generally kind turn I and for right assuming similar have rolling on. We're of deposits to those, growing pretty now, deposit where now our institutional deposits with more always at CD and program that rolling we're rates but we're at We've OceanFirst right those. not aggressively be a on at but assuming of going been the to are think institutional allowing costs a of we to of have some little we're peaking

we lowering base, going core back the on of touched we're mix a to deposit And to the we then be assuming stable earlier, pricing. certainly on see across improvement cost, do if half. i.e., as begin that's or in fairly And

about able but So we months trend together look to like yet. we it forward being and start to a put couple quite just seeing that, aren't a talking of

Matthew Breese

Okay.

guide assumes expansion that fair basically costs So the and a flat assumes Is some statement? stability NIM maybe deposit are there's reduction?

Patrick Barrett

Yes.

Matthew Breese

so seen And rates yield it's we are mean, would might see then I XX the of flip in to I than -- mean I've loan on we curious here? considerably think acceleration frame And reference the on that the any years, balance the sort for expansion of what's that from pipelines, X I loan in helpful. an terms side, I'm loan see into sheet higher difference the be extent today. should the if widest of

Joseph Lebel

commercial Matt, saying is seen it's towards C&I pipelines, we've mix Joe. credit. especially little The by in this. in more a CRE shift -- good, I'll the which pipe, the less a and start bit in credit

you or credits, rate those of know, on multiple C&I tend be based SOFR. So as to floating prime

increased the the that. relationships happy things. seeing thing. you're with very a why that's other We're way, is come a good yield, of variety and those deposits which, about So Because by

as costs as So benefit, sensitivity the in have will the that deposit we'll but well. the some end game, -- Fed starts in move, to hopefully, right

see So expand happy we just I with declare pretty premature victory to we're so and But can we're a going yields. probably yields think far. higher to what think loan do you're on little margin that too seeing

Christopher Maher

look they're to in might yields in Xs. at that our I that, carrying the are rolling are the if you too, that that add loans presentation, CRE just rolling the supplemental

bit little than X% So stuff loans loans C&I X%. rolling pipeline X% to. refers newly from change lower rolling because We're that Joe X% originated from are probably to to rolling not and the loans that we're a

kind something they that freeze if And backlog loans we of this are So time. have play will a over of now, to where that you have is rates out roll.

to headwind. of bit just overcome a know if any tailwind. that a it's will be enough little We So deposit don't

Matthew Breese

of book you remind percentage us or XX overall it, days? call loan just immediately of within, could floats And what XX, the it. Got

Patrick Barrett

X/X X/X, and Call it X/X.

X/X got that resets hard the in X/X we've So when that's frequently. we've role over of X/X fixed adjustable maturities spread are a least then dates and roll. got We've out not at a they quarterly, that series are got if and more those and

Matthew Breese

prior Last on in rolling you Okay. properties some real your is do that's before after me, there Chris, colors ratios how was stuff for particularly and commercial how valuations And handle point one reappraisal do ratios? which loan-to-value service the on then Could estate, just a stuff provide rates? on well and if these debt coverage higher on respond? any of the

Christopher Maher

there's the will but of stress We've testing So our more you kind loan of look supplemental, lot at all We've of of give in over loans, office the of facet detail can I looked at. year. the kind of a the every rolling kind course we had book maturities, headlines.

the the We financial interest stuff from rolls X rolling you were as you that clients CRE, is have years that an to have at over serves rate flows particularly statements updated of and it find we still stress about and easily. what and if the pretty stressed next cash rentals, X%,

range, it's in the XXX service. debt So think, I of

So rate related. that would the doesn't be have really portfolio stress that at much we're comfortable interest rate,

I would another phenomenon. out then And point

that these than we're of And either CMBS programs. eligible that. or is the is affordable of even finding more Some for are pricing what loans GSE their some

those for we at market loans. although all that's So did that a X%, rate not stress

whole around of concerns don't that. expect a we So lot

balance at of because wind might that to are we're the In off may rates fact, sheet the up not be coming some today. it in available renew market that it that willing

Operator

from Our Manuel next D.A. question comes Navas from Davidson. today

Manuel Navas

Just little to guess, a I bit dive the better. into pipeline

that is commercial and foresee the C&I in and to still the we forecast? kind your as cuts you pipeline the is can now on that start CRE So indicative of grow most muted right side is that of get CRE

Joseph Lebel

as folks see mentioned hire think to CRE. I concerns still we Matt, now love and have bankers documented had C&I Those Look, as good opportunities. starting activity. But their around at during are and it's more that. and culture, of immersed so X the a I not to earlier, fully OceanFirst We're recent gotten to valuations XXXX. CRE some in been green think shoots there's lot has I speak, fortunate, been we've well more

as we're a activity last couple the interested in in decent happy of amount earlier, And construction compete. the we're So that's of Chris years. absolutely mentioned to We've market, in. done the

to That happy -- the as terms better-than-expected pretty we're complete to according or So terms. lease-up projects with continues that.

like more. We're not lot So of yet. just seeing we'd to do it a

Manuel Navas

On little those about fourth of are relationships. Is lending channel driven that C&I deepening kind how being talked lending from hires, deposits channel you the in a quarter? commercial commercial that bit the of much the

Joseph Lebel

some the makes Well, I don't sure we've call, have in front defend, that fortunate attract answer get color only if market in very to but that -- tell the new in you been the deposits sense. you commercial that after of me, I but will not bank. I'm we can

Manuel Navas

That's great. Okay.

Just a right about elevated? capital [ you the partner there talked growth is thoughts out the bit capital find bit of the M&A kind slower. as little a when on What about buyback, stays and opportunity little it your if are thinking especially what's kind and builds, ] of you As a buying?

Christopher Maher

in as I'd below trading book. investment our especially tangible start is with ourselves, best currently we're

looking a be would regulators and they're going and little the think, priority. of I that in So growth organic industry, what our continue the kind little are to the and M&A M&A two, regarding We're responsible to understanding from a precursors of then financial to transparency marks build And better more rate the transactions. for returning franchise. out conditions. There rates

industry to said, I be a obviously think but in more that short-term, going consolidation. don't So I it's the there's long think term,

role now, improving to going is done a like the we've performing think that well organically play most and on I focus franchise. our But of in we'd our past, right forward. and

Operator

next [Operator question is Christopher from Montgomery Marinac Instructions] Scott. Our from Janney

Christopher Marinac

know of the of Joe, in I Should that last And Chris, I that this kind having you? times about walk you about year. circumstances? that? just of and more the new ask external right factors morning a that kind talked wanted drive kind economic success couple can through of or customers pace you you And of under the drive would pace pace to customers. what bringing new new us to deposits would accelerate Is it of

Christopher Maher

kind certainly and to bank, where April from referenced. unrest year more ourselves right? one We'd at growth number things you about any that like We've in to don't love over bankers events a the XXXX, get like chunk for been if they And think, think pleased but is of I to able into were sum up that rate. of of May, have just were really was willing the time there staying decent going were If XX% for customers forward. we Historically, new It's March, other bank they put to see be organically a were, such good not period that. happy the to any year, long few a they Yes. grown add way per a staff. even for not that's in back to Joe that I I happen, think would to going a our to We'd same move franchise.

that. support to talent it. markets Our a We do can find

grow return to to have rates that to growth year. XX% up, take outlook we to would just people a to It's think this and year And position while we a pick -- franchise at is markets but be back about level. little So the long-term I our that. where the the do the

take little a work but that. time to we're going it's to through So bullish

Christopher Marinac

change follow-up this for value past loan That's some is fair whoever that the we've And Got in Pat with that or quarters, marks for seen this to just a quarter? it. did opportunity further rates there year? improve those And helpful.

Patrick Barrett

with the I thank down closing that. we question. call you It's wouldn't that get Yes. to for something want really

see quarter. improve this You're going loan to marks

a we've noticed industry You're the fair rate We spent curves are the fair for the rates. expectations. is with to residential room we've We probably differs of probably discount feel loan we've marks. others. than value heavier line little that mix in at across that a But out those assumptions there more time bit think concentration a bit have We some got very marks that taking be a of got see longer-term improvement or with going in our look good of little and tend conservative kind and from average between bigger meaningfully value narrow about exposure many a we to to from you'll Because perspective. how to the in looking and others fair see our that drive value the marks. a people But and high as do, report that this tend quarter. at fair think pretty will of change same gap and low of I amount

Christopher Marinac

lot. sorry I'm a bring sore but a appreciate we to up great. background the topic, That's

Patrick Barrett

it's It's sore. deep not topic. pretty a just It's --

Let's take that offline on [interview] sometime.

Christopher Maher

in into -- cases it's and I'll comments. circular your they're to add Chris. as kind some notoriously Pat's like are they're at very looking Chris, These we're where of and speed prepayment assumptions them finer sensitive is The put calculations another. and better, going a kind changed of feeds continue one point and good your that. news we're and thing rates on change that getting to to

Christopher Marinac

I No, appreciate understood, it. and

Operator

today. final question our you. This Thank is

management to for back I'd to like any hand closing remarks. So

Christopher Maher

quarter your time with today a Corp. first All published have right. appreciate of you our Thanks are and weekend. look in Financial We support OceanFirst to results continued and speaking April. Thank We very your after much, forward you. safe

Operator

everyone, you, today's for call. Thank joining

day. have your a lovely You disconnect may lines, and now

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