OceanFirst Financial (OCFC) 19 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

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

Call transcript

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Operator

Good morning. Thank you for attending the OceanFirst Financial First Quarter 2024 Earnings Release. My name is Victoria, and I'll be your moderator today. [Operator Instructions]. I would now like to pass the conference over to your host, Alfred Goon with OceanFirst Financial. you. Thank

Alfred. proceed may You

Alfred Goon

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

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

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

Christopher Maher

to provide the Joe we'll connection Good the color been for Barrett. Officer, our earnings this results questions. conference brief our Pat Thank morning, all After our regarding performance our forward earnings join taking business. throughout look outlook to about first joined refer and operating the you morning, your in performance opportunity I'm Lebel; your and We for President, morning, and to the you. This appreciate thank and by with quarter our discuss our Alfred. our may the call. We and some call. slides financial filed XXXX the interest to to in able Financial quarter you, remarks Chief release with discussion, we This

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

quarter to million. compared modest $XX of Operating expenses net to decreased Our million, $XX interest income million. earnings the linked prior $XX a decrease of representing reflect

the and demonstrated a margins was efforts funding. quarter. XX%. CDs, quality core results continuing prior stable interest as betas Margins the deposit X.XX%, as loan-to-deposit quarter negligible the XXX% to of deposit in margin our brokered increase same impacted in These a of were our ratio for level quarter resulted a by decline First in flat below at improve efforts to net another quarter

We is our deposit with now Capital million has slowing GAAP in in value capital shift at of X average and continue by the of repurchase $X.XX or to levels consecutive capital is results approved shares XX% repricing company's Board to XXXth represents securities common company's weighted X.X% It include towards increasing Tier to that share. XX% is velocity dividend. but continue growth of largely X quarterly cash management, portfolios. our quarterly under the a common book cash to see a higher-yielding the offset ongoing earnings. $XX.XX. a loan products, the increased which and on continued This by gradual and tangible mix equity ratio $XX.XX. Further of program the per These dividend nearly repurchased cost build $X.XX

more remain industry turn the to this positioning and on economic performance first some a We detail responsible balance At company for continue the to focused point, discipline expense regarding Joe to outlooks the of through prudent management. our during I'll over growth, call provide quarter. sheet variety and

Joseph Lebel

CDs marketing relatively remained by continued deposits driven offered. targeted prior efforts stable, balances declined high-yield X%, reflecting and approximately balances savings Nonmaturity approximately to X% Chris. rates of Overall, our quarter. Thanks, compared deposit to runoff the by brokered refinements in the both decreasing planned decline and

credit discipline. loan saw by decline a we of side, driven in customers combined than with balances price modest origination loan X%, and demand the from On reduced less

in QX to half ramp be to lower but the in slow loans of low is to up the the our be the growth fourth higher modest the the be may in and majority start third of than year, XXXX. coming expect balances Growth loan digits, growth year-end year. deposits we for by XXXX the of Said another XXXX quarters. remainder in second to with and way, Given the expected mid-single

nonperforming quality for charge-offs, expense loans, average Pat with marks X.XX% charge-offs and to With remain review Asset We the metrics the I'll representing in X.XX% criticized X.XX% respectively. outlook. loans and to in loans of it strong reported quarter, total no last and XX and net assets, which XX that, essentially of to net total over classified margin quarters. turn

Patrick Barrett

Thanks, assets, margin and interest from modest reflecting shift and mix the were higher million X.XX%, net $XX of the continued interest expense a offset funding. Joe. income continued respectively, GAAP by in repricing

in As Chris quarter. XX% XX%, modestly variance noted, funding up from reflect positive a prior in the cycles cost

to show margin, net relative While and growth loan initial stabilization unpredictability interest funding in subject signs around trends. this is mix

or be the shouldn't either stability in quarter noninterest you to modest million. near possibly expenses surprised to decreased compression see $XX some linked term. GAAP So

to to We every effort expenses operating stable million million $XX modest continue quarter quarterly the make to per hold volatility in may occur. but $XX range,

XX% of of nonrecurring a million. rate charge included Our tax effective onetime $X.X the quarter for

full the effective tax charge, with this in XX% and to is Excluding remain rate expected periods guidance. at line and year prior

with to the even mentioned our XXX,XXX shares repurchasing while the to capital strengthened XX% CETX approximately for report point, this call. we'll begin ratio question-and-answer growth the Chris portion million At and accretion appreciably as capital Finally, quarter. $XX earlier, in of during we're pleased

Operator

Instructions]. [Operator

with from Piper line Sandler. of comes Schiraldi question first Our the Frank

Frank Schiraldi

Good morning.

a of XXXX, some in if modest growth earnings return -- above thinking -- it wanted even about about want And at talk you slide like I Just obviously, XX%. in there of now the the seems and you above to through XX% well the XXX% to in it's do deck, could you ratio half buyback. back believe about at the CETX the add remaining plus

threshold, at sense [ about your medium to aggressive XX% capital I trying or get over XX% the when about return a next just that how term ] could thoughts you on I'm these talk yes, be And you of levels? So guess, here. capital, stock

Christopher Maher

it's with today. very in comfortable Frank, Chris. we're ratios we the are Look, where capital

growth. of bit little to a have but returning anticipate room, we we also think I

excess any for we use year want So later of that we might that the in don't want to growth. capital up

I to free We're repurchases I level, increase we're you if quarter, repurchases. it if cash fund all And that you flow not this the leverage. think the think saw this about using we're that the remains to around not expect pricing would our like using to in first just growth for way, using continue.

Frank Schiraldi

estate percentage total Okay. there we that And could beyond, as half any capital. growth about targets Appreciate if forward? going that. then just about in and think curious, year sort terms remind commercial And you trend in back us maybe the any of is as a thoughts you about as this of of of currently real where concentration, think just

Christopher Maher

way that is but with comfortable the CRE think I think be to our we Frank, not it about it. So will increasing we're today, exposure

mature with some But a ], kind the cases, we're doing we're other replacing position. credit depending to that's off move and on what as those of [ treading allowing borrowers. So sheet loans them the structure in is water balance

So growth see most is of to of you're the outside going in classes CRE.

of kind it. right that's think to the about way So

Frank Schiraldi

and obviously, if X spend your to taken Okay. has they're size. don't -- on have million and office average spend believe the of your loans $X if loans. And your wondered performing finally, geographies $X business million maybe been a you are I larger maybe But the But an just could investors and focus as a loans in a much I second how below there? just I districts. central you on that or our just in larger could average, second know you

Christopher Maher

a Frank, couple numbers. of some and you I'll walk give of I'll Joe have then the thoughts, through you

District Central in we've First, with. all talked Business and feel before, our is we exposure as credits that quite very comfortable low

the that about through sheet. might District Manhattan, We numbers. portfolio the the with in totals helpful. note, book. One stats been important sized walk of folks, and example, $XX The of million just shared through this But our in balance maybe a number talking office we've some low So Central I've were exposure in very you Business loans. that have suburban Joe, is be in majority smaller vast of for

Joseph Lebel

couple, I'll Frank. you a just give

size transparent only about loans million. million have weighted under those So portfolio. are the pharmaceutical $XX very loans is X of that a actually, company headquarters. we've is very well-known over U.S. confectionery about -- the think book, includes national XX%. another their been a loans pretty we the and And which $X.X it's XX% we in loan And And have about company average well-known in where I of CBD

positive. -- very banks, regional in country. pretty The banks is of large one of another the confident, X pretty headquarters big we're the loan the one big a headquarters So X of of

X loans to $XX larger over So the million. X that's

Frank Schiraldi

of $XX I kind guess, I history you forgive ] that And thinking have is is but look me, at forget the exactly CBD business the [ if of a book, stuff. you million Okay. over central total, about what kind stuff we're

Christopher Maher

book of loans Joe in be to but tends stuff would is largest million. in the bigger entirety each where They be Certainly, to that And is there. CBD see that. about the the of buildings, CBDs. correlation a all of $XXX happen part There's CBDs, you mentioned the

Operator

comes question from of Switzer with Tim the line next KBW. Our

Timothy Switzer

demand they're of end lower your customers. maybe Do the just is and to a by from the provide be you seen demand? about so loan that? Could color around year? it of less wanted you've up I part bit expectation follow demand think on recently little driven an comments that you is macro-related lower fears? to the And waiting rates for some for the by maybe Or

Joseph Lebel

year, was that January, case of I Joe. in would it's absolutely February. Tim, early the you the tell

people that expenditure think maybe were capital on looking either a M&A some an But for new we're I purchases. moderate. taking before business relief some line, transaction, seeing

be to I the think realization coming necessarily may are people that not case. the

seeing The able of have other seeing that along more we're in renewed to obviously pass seeing we're product bit some People in increases costs. that We're inflation. thing a little the that is confidence. been

a end, we've seen little to an subsequent of pipelines. So in bit quarter increase

us. C&I shoots seeing think of earlier, mentioned majority a those from green really is which vast focused. for where increase positive been the start, is coming as the book, we're the pipe I And we've is the which Chris So in

Timothy Switzer

the Okay. would Got be in than rate X the cuts, could particularly guys we a or that say, us update series or say, half how get, of the the ]. be NII to got, to it. and we X of X X only you would And what if believe [ impact year remind us on different rate if of back cuts you

Christopher Maher

sense up Chris that you incremental and it's a give well. whether even an it's Pat cut First, I'd as down. or just probably in chime But will

So and these change. a it I days. Doesn't about we're thinking both ways big make looking think

one relatively X even cuts kinds So whether regardless those it's or outlook stable we're [ rates ], right, of scenarios. of

it's going significant have to is ways and the of But have the we're -- their -- on rolling. We've fixed of maturity do be to contractually know are year. for see longer a quarters going impact. We got just we're X about QX, for think in the in hitting rolling what's thinking X maturing things maturing that loans one things loans amount of contractually worth not X, are to last play $XXX some side, we and rate we a certain I big So that the about loans reset. And know some or the million certainty out. of higher

So going as $XXX where that That's it a opportunity. from is is significant up to come result, a million today.

there on. be other but that hand, look hard the abating, it's year the exactly On will how say lingering it's goes mean as a to I will very deposit pressure.

for much or X doesn't higher the or particularly. cuts us And longer So outlook change X doesn't X concern either. raise

So that? for us. Pat, anything you'd add stable to it's relatively outlook a

Patrick Barrett

really whole just uncertainty Yes, just guess nonmaturity the at that I is side. looking I around funding would No, we're I -- factors the that would deposit emphasize

On loan the building behavior level side it's to of of really confidence. and confidence the of We've the hard see near term. level entirely, side that that the funding. securities difficult the -- us It's in for has CDs interest-bearing predict. And pretty got entirely book just unpredictability on to term space, space noninterest-bearing and high depositors term the in other proven

said around NIM think I'm have but just trends be that's bit, our a you just to cautious to even might it see before And that cautious outlook see better going develop little It pretty compressing. stable. naturally little a have we to I guy. our expand might could for why we I be confidence. on have a some wording

Timothy Switzer

percent That Okay. or all of are what us [ repriced Got really immediately question. last was rate And your helpful. ]? one Could floating loans it. you remind

Christopher Maher

XX%. About

Operator

with from Raymond Daniel next of Tamayo the comes question The James. line

Daniel Tamayo

ramp-up of growth. expect Or we Does $XX the the appreciate the as each the of it million of I we volatility for kind year a million quarter finer guidance year. $XX just the I of $XX if that [indiscernible] quarter maybe on a $XX per the kind million hoping cadence in to bit on throughout imply expenses go through a here? get range expense we little was million should to range? through can point

Patrick Barrett

No.

be bit. you flat I it to but -- throughout could should the expect it little around think from a bounce year,

some going below you $XX keep have really to You million. it to just -- do volatility, we're work but hard

the So we one range that come the which up there and But that do day the we behavior. to customer average so pretty expect thing a up and is control good know out should math not with that every it's put that's we you $XX can estimate. that can million, you

Daniel Tamayo

[indiscernible] are And guys year? then are there [indiscernible] maybe through that initiatives of you implemented are any additionally through there, timing any working that additional the

Christopher Maher

find we mean, the of that -- the is the would I we the would thing course markets. I good year always only just when over hire we doing in talent anticipate

bankers, hire good to we're if commercial going find So good we them. talent,

budget We in have the do room that. to some

other have that down. expenses coming are We

pattern So a we to view, better hold let find know. our people we where positive do few can our be, something then outcome. that But quarter, in every a our expenses that, if they we're guidance you an and typical we'll would right of change expense are. If than hiring very opportunity

news. volatility, linked be would think in something good to we that would significant expenses any So be volatility

Daniel Tamayo

rate We imply post ] in onetime the [indiscernible] a Chris, of at just bit and out forward? and gains little that a kind being some the charges And looking kind bit to the look at run were [stripping here, lighter of a there of little main service maybe of kind -- then the maybe trust fair kind the that lines we Is going the million that lastly, rate out taking the there. of under looking service $X a $X of or just variance ] gains looking equity some maybe with BOLI of noise level of [ sale quarter. kind forward? during that kind of charges run Or for. seasonality million may going is things kind fee

Christopher Maher

I'm you this we not regulatory views -- into of would may around listening dialogue fees on role, but seasonality to over line lines This the have always I thinking. change to The cautious there next to expect seasonality or that vulnerability make wouldn't the are play And less would fees. as their just policy come continue decide into sure more which few is significant responsible But fees with we're others, different a regulators really we in current could our kind given the us may public it. on some fee the quarters. to to line in to cause reexamine fees than

Operator

Group. The from next Bishop with of comes line Hovde David the question

David Bishop

pipeline terms quick Is here. line in to the Joe, you that second of obviously, half. have you question that of sight the hit for than XX-day mostly back half maybe those the under in low the [ in of sort terms numbers of in year? have pressure of you published pipeline gives may beyond greater outlook terms mid-single-digit -- it the come ] numbers the growth boogies maybe of the in Do what's confidence

Joseph Lebel

I quarter. answer added think is this. first ramp C&I in add year. takes Dave, them X added easier We some last -- Yes, we We've the X time It lenders up. to more the

QX. start We in to here day pretty have any couple a scheduled much more

increase end to in an seeing the absolutely we're of So pipe QX. subsequent

up see business the they're that to bring to And us. to that start into that where gotten finally in kind think QX. that you're of point I have to to going to continue closings I through folks filter QX expect ramping

far what expectations our of that's are. think I so we're the and what So seeing measure

David Bishop

slide regarding it market high-yield or I Am saw balances overall more rate to [ average. spot either those stable? It like quarterly checking the the is in maybe rates right points moved deck even products, the it And like there there ] have savings some I was down, money XX narratives down that [ ]? from Got opportunity it. sounds down And pricing. reading interest-bearing you move or then looks remained the basis

Christopher Maher

Yes.

is this the to stage keep and us at can we're it. kind of we that fine-tuning it, off we're in kind cycle. prices back money for of of we're deciding keep think want in the money the -- good may not be to which news Meaning pull rate economical I we what

the is lost That's why that some pretty deposit So we the the book. QX, in expected saw in high-yield rates, of those attrition stability a that welcome we but that change. We knew in you hit first when to -- let's actually fourth coming of was quarter, saw what the we reduce into and quarter some clear, we in deposits. and planned. much contraction terms be We

expect the would the over pricing to year. of be us I So course deposit fine-tuning

One too want. kind what feel it the and about want Obviously, to at that's shop. cuts about point in going any little going Fed cycle a get of shop a not goes people trying are what early they're does, would the a going this it that. linkage longer-term They're assume of policy depositor to is statement we We care rate Depositors back the to a easing that. Fed what to where makes bit things. that going is but certainly on between to expectations. policy pressure be beat they're but they it to And make and is off we questions I the predict, get difficult rate way lot rate there all Fed to in and blanket

David Bishop

quarter? this you vein, the of And -- or there be deposits have terms in is then any outlook of brokerage sort -- same do Got it. maturing in may

Christopher Maher

option that Traditionally, saw made not a at rate funding. of time do as generally And relied brokered We it good liquidity manage interest sense to to it a we option kind segment. of a lot when risk. brokerage we reduce have great a it just bolster really on is so. to to want time, to Over continue

So knew right did we would our and to what duration. after pulled with we we rise, characteristic have we that down is to of for certain kind immediately went out brokered a we a rate it first rates book started very interest funding

cycle, end make duration near CDs through top sense. we're extending the somewhere that brokered doesn't of Now the the

also rolling over us takes but more just off maybe to them volatility a become time. little liability allows So bit out, sensitive not

David Bishop

pickup looks be question, modest final one CRE category in [ loan And looks it. [ ]. office special ] like maybe to maybe a Got mention the

curious, on the Just risk maybe some commentary but in drove what change rating?

Joseph Lebel

little Yes, I'll a One little primarily One tenant color. loans. was delay build-to-suit. getting in. There's give you Dave, a feedback. the just It's tenant The a X a little construction is is in the paying just fully bump as with some which loan One a X other the in in road and principal. was little Philadelphia, the and loans. office an occupied,

end X you of where category the cleaned prudent it's in X, all QX. think of them if I the belong, up they have not But concerns. X, the some by just to are put if

Operator

Our JMS. line of comes with next Christopher the Marinac from question

Christopher Marinac

to going just continue on left his off last where I'm question. Dave

level look So continue reserve kind build across criticized the speak of of the Or driving on the still low for itself? that at and did forward? cycle reserve you see of levels if loans, the at we is going charge-offs your all kind to

Christopher Maher

there's don't change of going a don't We kind outlook, the it's I see. any unless which think, don't in any expect frankly, Chris, good there. a I question. don't think forward, No, there's linkage Yes. we

as if with it the both think forecast would economic about So at factors, our charge-offs. history gone you had as the allowance just external look we observable quarter, the way of if well the this is I

release at didn't an might prudent the was argument in reserves. that this made point have We You to cycle. think

where bit going would factors that's what's conservative. quarter just But little qualitative could know up But been little chose bit. came we a releasing. quantitatively, have, on. kind it have to of I So banks a considered you our have the some be more

Christopher Marinac

attitude, I you with the may follow-up just dependent them think being want second so then mentioned, you we on is Where down but commercial it as specifically to where more estate, just given of real optimistic C&I, ] And is. customers overall of the know pencils commercial year? are you [ not Great. that large in mean, Are now? the the a growth. there's lot do a of kind in regionals, customer about do half you

Joseph Lebel

all conversations the are a we think are, I more already getting seeing but optimistic. customers are little Yes, think we're I we're having bit that

thing recruit is limited new nationals. a other for continued the goes the largely to business. is for level, a us think we've lenders there's And our we're a at beneficial time any that the highest hearing I our lending from relationship on. as of of largely, still type lot from It's appetite is what which -- folks

the case. So I that expect be to

talked the side, what's -- know On a fascinating CRE we've you about bit. this

entities, wanting about lenders it bunch a of the of and ], was to think that in I an bit not one on the a of period. And fixed is ones extended alternative IO decree [ of transaction are there's refinanced little $XX a our a one space. we limitation little million with a one but in plenty with X% banks talk but of there the QX, government prevalent, that at better we saw GSEs borrowers bit the

that, something monumental, But to but be world, like that. don't that's and think still it's pricing that's a not challenge. I just aware in not structuring And today's we're like of. We're

Christopher Maher

paid we've virtually their Chris. Make story kind this lines our good too, comment, all of to generational down. is [ more among and news no interesting The noticed long-term debt. ] C&I clients They they loans the one phenomenon have is

point, they and But net that's again, hope affects next we and we're couple there little not in poised bit to I borrowers showing our they're shared Joe, might quarters. you that will some that. the mean, outstandings. these So -- us have add become ready. earnings families a at of But because with that those

Joseph Lebel

still believe of he better not gets been one ability be prior X that he and of are still. years has story we But -- finally that C&I finally There's with acquisitions other that cautious opportunity. people to for his some the successful. sheet market. told balance our our it's lend, I will chasing clients think in and We've been now successful. of And And

Operator

question Matthew with next from Breese Inc. comes The Stephens the line of

Matthew Breese

is much question $X million you obvious we million of I buybacks? a more in authorization. how the have the guess should -- expect way X I think remaining share

And gets So by year? of first can't of the the part is saw just OceanFirst to kind end the many and table. of love the last the shares. I reasonable exhausted of the part of But in buyback would hear a that is, strategy light on this I time that, second other capital it remember the the I options valuation one. to environment assume have and in is more light philosophical you

Christopher Maher

Well, it's question, a great Matt.

shares, I We cyclical sheet. the And think really at feel balance good we simple reasonably just about feel lows. good think opportunity for feel credit. there. the long-term it. good just We at value us, our When our including about look We very an a sector, of very trading is the very there's answer about we prospects.

said, your loans do the well. below tangible opportunity get year, the decision. That of bit stabilization see potentially second as little we as we're long of compelling some we we're power growth to with But in a earnings margin a value, this and as point, in company, growth book opportunity as growth side. to the Matt, have it's we grow to the half be back anxious and a earlier So very investment we're

which well, capital So if we're some growth earnings provide too. more growth, going should returning as to growth see you're to

doing we anywhere of more the because would We'd ]. to to want capital first fill want we we year, do don't below we couldn't outlook. But would just for I do to floors by another quarter book make we sure do [ current opportunity. But about us. trading up. We continue that Look, if think plan. represent And unique We we're want see substantially the have level asked wanted certain levels a have growth. you -- So end the probably It's the to whether our drift below to for plan. preserve tangible above. value that about us capital -- than near

we margins, bringing not, on I So going we're the not believe bring it's depend clients, kind of up opportunities. cycle part them sure or a structure lot growth but think margins. expansion. to of [ It discipline ] EPS your Fed and on, margin new can right We the could at make right to and is on the at could the it give chase to have a do also [ the stand-alone right? don't soft mean just table. a in what going the to not recession, we're year. The is of imagine landing by I off end But later the what ] multiyear to like want be is 'XX, we in that you know

we're not it. at But levels these use we're capital, going have down. we drive to So capital excess to going if prices,

Matthew Breese

LTV at or and I coverage service you fairly that service And annually? those ratios. be about the I And great? origination turning to appreciate LTV, are if getting coverage that. ratio, age is it are fresh? then credit. have average just for then kind on So getting LTVs Is recent was curious more debt an of the actual those debt would of updated the process

Christopher Maher

Yes.

things, of a are Matt. there couple So

debt we'll Maybe a would we our loans appraisals a the in detect just appraisal. people any sense. But go most for we is So of and updated annually. in out the on our Based a concern, an where loan coverage have ratio are issue in what update portfolio, chart, If the not origination-based we really a not appraisals. service to but see We a chart of one ] presentation, investor cluster we'll [ that. give have there's vintage big through next vintage. a think vintage add we do

] office products. a of is like and We that use [ we book for medical mention after COVID. that durable long-term very reasons the feel we that thought on I'd is The other of comfortable our one to focus was thing of things careful book office originated kinds about were lot that

on in we'll vintage also you. I'd the we do. tests stress you So to work point a deck for investor variety that of the

stress of loans at So well. those and debt and them and ratios and really then service post look NOIs these stress test we the take up the coverage hold kind

that it's think table we vintage, of, So are appraisal we very about a side be top side on we'll whole pretty that. income getting but feel equation, the current. and to subject The on of good would

Matthew Breese

else And referred office curious then, Joe, idea? I wrong, any on can thoughts I that love is And me to other think and hear correct are million. pool why, you any you potential had I there's if loans loans what million, of X $XX $XX was mentioned not Is any for Concern you would of in there that over the -- of X pass? content, there's them. X I'm those over and loss to

Joseph Lebel

So And the of unequivocally, is this passed. the markets, a we top really -- can I very loans or medical, I with. lot but book the book. as it all benefit lot good the period. news tell credit, least little really diversity with of we've pass to the fact performance go got Chris little And a bunch the suburban X very pretty that in about bunch tenant, at the talk X we're the the urban really I whole of We've And wax. we you at look I in in think it, that's to in about book. And talked other a have one the mentioned, a fact geography, CBD, been and had a we've good rate much you don't in are the ones, happy of story. tells that had exception QX,

I is it. we've the I -- done money what of top performing. on just we're and think So is out done, we've

Matthew Breese

of of in And more growth then the brokers just it to Or switching guide deposit of is in? And How is is off run kind cost targeted off? deposits. to there core savings deposits? kind the all high much with

Christopher Maher

Well, think much have for don't you material in. all the most that quickly or to brokered. the guide in that trying can But we the growth part, give And number. is we're deposit I drive in not Pat any down amount. --

quarters. off of going high-yield just but QX, be think wind a shouldn't significant. headwind. more And it The little in bit there over of down savings, then be I running will to is the next broker So nothing much a several that

Matthew Breese

your folks away of neck me. opportunity will. bring one from that down of in the Are peers some you in woods? are some Or recently waving deposit your And come of Okay. for you lot in seeing there gathering lending disrupted last if institutions, [ commercial any or is ]? a to then talent talent Look,

Christopher Maher

don't we a I when we year. But the to think to X we want for got people gee, we've don't month hire this we've people and find And have hire hire a years, there's you talk. over And have kind wherever done say, people we've And don't reevaluate we said only this and And whatever and either. this, there really of the we periods just opportunity. reasons opposite or do we challenges good the reason. because something. But a something when high-quality lot is lot for a to sometimes years, like people go of we'll are. they through great bankers over have that think X mean of them. continue bankers conversations, I we And it, are do where they it. are budget we We this

I places. would to expect us you'll of talent continue a from add variety So see

Matthew Breese

I on talent? just there. -- And think, comments any Any much Joe, you had it I know, leave how mentioned, handful. Okay. I'll

Joseph Lebel

Yes.

I already. think a few had describe now, -- we've would --we've these

We inside as to have good mentioned, that budget talent, in is says find that whenever hire going we company for have that talent. an means we that to don't the a them. Chris we're And try joke all

as can we good many we'll add. if So find we as can talent, add

Christopher Maher

over you've the about pace it's for a couple of And it. couple that be of changes, we'll Matt, last pace today, communicating If bankers of kind a into the still quarter. years, going seen

Operator

comes line the Navas D.A. next Manuel The Davidson. of from with question

Manuel Navas

you on lenders brought you've actually like the have far? So so point? in are you C&I bring do Or a seeing on that deposits engine, to core deposit pipeline the visible this

Joseph Lebel

We on. that maturities I seeing QX deposits before think, QX. in sometimes But deposits bring Manuel, as deposits. there's you limitations in more prepayments loans or all are and early If fast we'll anything, in more that them as they're bring loans of know, over prohibit as they see coming because, and bringing some in or

Manuel Navas

savings And the some high-yield ], the that let high-yield you that's off to [ confidence of kind of run reprice channel? giving it of and

Christopher Maher

to And dynamics exactly what also, are. those we understand need

really moving of know you don't that start runoff kind what you until be. So will tolerance rates,

bit. a little So we're rates around that process, beginning moving

deposit you you know We've we on want, tell should you deposit that can what we're but just be. every of what experience flows the your So and watching big exactly survey fans do that. sure we're marginal pricing always been will of actual top of pricing And is. market to trying make

Patrick Barrett

back high other want specials, if up savings, I'd to brokered certainly ramp it's confidence add or and/or to, in CDs, deposit whether those segments. ability have interest high level time that also retail quickly we even customer those a our we levers,

that level, roll of mature from some about that hopefully prepared, and offer, pick that -- rolling in some lot we're start rates better [ on learn letting had up highest a see dial ] and core we've them confidence growth be deposits. enroll off, with So feeling the to not back to things and we'll replacing and

Manuel Navas

on a I kind operating just we Can Trust the general business color. and of we how appreciate a sold and that where of have update strategies in? bit that the fits leverage

Christopher Maher

a Yes. of I'd couple make comments.

Trust strategic business P&L. partner, relatively we think we a do the It's to with sale is that partnership than neutral in business that more do the we where a First, can today.

see in to much So not you're going the P&L. change

the of Obviously, the terms we're coming billion. I leverage the got support quite if In cost you've low. with here $XX way add operating over is there, expense, is to for you but that about absorbed [indiscernible] company the fully marginal some now, banker expenses the have all part, thinking strategy, we a think the growth most

no line at come as you're side right? then inverted, I to at as going is, is of noninterest curve you're And allow offer a point, which and kind the might calendar well. have leverage not some second to a the that here to in yield point, grow So And from there's expense we see think assets decrease I in. that and expense hold going that's story noninterest where our to view have revenue that, kick for We that's this.

about So second to And add point cylinder [ that grow. expenses. flat expense It some the would that to can that's We need if grow -- down at the be ] rates base. we're hit normal. off road kind of doesn't mean then to this this going would guidance dollars

Operator

I would conference now Chris remarks. no additional are to closing to Maher any pass back There the for waiting questions like this at time.

Christopher Maher

Thank you.

Stockholders close Meeting we held call, Before the our I at a.m. want on of to Time. that everyone will XX virtually May be Eastern X:XX Annual remind

Access as access further we annual Notice our stockholders set were environmental the For of have for and transitioned company. decrease waste goals to notice a grants By and all meeting full model able a to the to access costs electronically. materials. paper and mailings XXXX reducing materials, materials and operating

our follow receive you materials, XXXX. to received would instructions provided X, the of please and proxy request printed submit notice have May and your on If a to like notice version prior the your

requesting on Corp. vote during you forward encourage If any your speaking look contact to Financial have May Stockholders or March Thank our stockholders on We assistance to questions We today XXst. us. any your and you shares. We OceanFirst materials, of appreciate your with time and continued to need please support you. with Annual Meeting materials XXXX, proxy don't the record hesitate of this XX, review

Operator

your participation, your Thank That call. for the concludes and rest enjoy of day. today's you

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