OceanFirst Financial Corp. Announces Redemption of all Outstanding 57,370 shares of 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock of OceanFirst Financial Corporation

Rhea-AI Summary

OceanFirst Financial Corp. (NASDAQ: OCFC) has announced the complete redemption of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A. The redemption will occur on May 15, 2025, involving all 57,370 outstanding shares at a redemption price of $1,000 per share.

The redemption includes 2,294,800 depositary shares, each representing a 1/40th interest in a preferred stock share, which will be redeemed at $25 per share. The previously declared dividend payment will be paid to holders of record prior to the redemption.

According to Patrick Barrett, Senior Executive Vice President and CFO, the company's strong capital and liquidity positions enable them to pay off higher-cost liabilities, aligning with their balance sheet optimization strategy.

RED BANK, N.J., April 11, 2025 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ: OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank” or “OceanFirst”), announced today that it will redeem 57,370 shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), constituting all of the outstanding shares of the Series A Preferred Stock, on May 15, 2025, the next dividend payment date for the Series A Preferred Stock (the “Redemption Date”). Payment of the cash redemption price equal to $1,000 per share of Series A Preferred Stock (the “Redemption Price”) (equivalent to $25 per Depositary Share) will be made on the Redemption Date. The Redemption Price does not include the previously declared dividend payment that is due on the Redemption Date and that will be paid immediately prior to the redemption of the Series A Preferred Stock on the Redemption Date to holders of record on the record date for such dividend payment. On the Redemption Date, simultaneous with the redemption of the Series A Preferred Stock, the depositary for the Series A Preferred Stock will redeem 2,294,800 depositary shares (the “Depositary Shares”), each representing a 1/40th interest in a share of the Series A Preferred Stock, for an amount per Depositary Share equal to 1/40th of the Redemption Price per share of Series A Preferred Stock.

The Depositary Shares are held only in book-entry form through The Depository Trust Company (“DTC”) and shall be redeemed in accordance with the applicable procedures of DTC.

On the Redemption Date, the Redemption Price will become due and payable. On and after the Redemption Date, dividends in respect of the Series A Preferred Stock represented by the Depositary Shares shall cease to accrue, the Series A Preferred Stock and the Depositary Shares shall no longer be deemed outstanding and all rights of the holders of the Series A Preferred Stock and holders of receipts evidencing the Depositary Shares shall cease and terminate, except only the right of the holders of the Series A Preferred Stock to receive the Redemption Price and the right of the holders of receipts evidencing the Depositary Shares to receive 1/40th of the Redemption Price, in each case, without interest.

“We are pleased to announce our payoff of the Preferred Stock,” said Patrick Barrett, Senior Executive Vice President and Chief Financial Officer. “Our strong capital and liquidity levels have positioned us well to pay off liabilities with higher funding costs. The redemption of our preferred stock is consistent with our balance sheet strategy of optimizing debt and capital.”

About OceanFirst Financial Corporation

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Company Contact:
Alfred Goon
SVP Corporate Development and Investor Relations
OceanFirst Financial Corp.
Tel: 1.888.623.2633 ext. 27423
Email: agoon@oceanfirst.com

FAQ

What is the redemption price for OceanFirst Financial's (OCFC) preferred stock shares in May 2025?

OceanFirst will redeem the preferred stock at $1,000 per share, with depositary shares being redeemed at $25 per share (1/40th of the preferred stock value).

How many preferred stock shares is OceanFirst Financial (OCFC) redeeming in May 2025?

OceanFirst is redeeming all 57,370 outstanding shares of its 7.00% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A.

When is the redemption date for OceanFirst Financial's (OCFC) preferred stock?

The redemption date is set for May 15, 2025, which coincides with the next dividend payment date.

What happens to OCFC preferred stock dividends after the May 2025 redemption?

After the May 15, 2025 redemption date, dividends will cease to accrue, and the preferred stock will no longer be deemed outstanding.

Why is OceanFirst Financial (OCFC) redeeming its preferred stock in 2025?

The redemption aligns with OceanFirst's balance sheet strategy to optimize debt and capital, leveraging their strong capital and liquidity positions to pay off higher-cost liabilities.