Achieving notable progress in its financial performance, OceanFirst Financial Corp has demonstrated robust growth across multiple key indicators. The company reported an impressive increase in net interest income, which rose by more than $3 million during the quarter. This success was complemented by a 21-basis-point expansion in net interest margin, attributed to effective deposit repricing strategies. Furthermore, commercial and industrial loans experienced substantial growth, reaching an annualized rate of 24%. These achievements underscore the company's commitment to enhancing profitability while maintaining a strong balance sheet.
In addition to financial milestones, OceanFirst Financial Corp continues to focus on strategic initiatives aimed at fostering long-term value. A significant development is the introduction of the Premier Bank program, designed to stimulate organic deposit growth and improve margins through personalized customer service. Despite seasonal fluctuations affecting deposit balances, management remains optimistic about future prospects. Operating expenses were modestly lower compared to the previous quarter, totaling $64 million, although a slight increase is anticipated due to recent staffing additions. Non-interest income decreased slightly, primarily influenced by seasonal factors such as reduced title fees and service charges.
OceanFirst Financial Corp's dedication to prudent risk management is evident in its asset quality metrics. Annualized net charge-offs remained exceptionally low at just 3 basis points, reflecting the company's cautious approach amidst macroeconomic uncertainties. Special mention and substandard loans also decreased by 5%, further reinforcing the institution's commitment to maintaining high credit standards. Looking ahead, the company anticipates continued growth, driven by innovative strategies like Premier Bank and disciplined cost management. By prioritizing customer relationships and operational efficiency, OceanFirst Financial Corp exemplifies how proactive measures can lead to sustainable success in the banking sector.