Even I have to admit that small banks are not the most
exciting stocks to follow on a quarter-to-quarter basis, but by the same
token I don’t invest for excitement. The story at OceanFirst (OCFC)
remains fundamentally the same – a well-run New Jersey bank with an
attractive deposit base that is leveraging acquisitions and new hires to
grow its commercial lending business and profitably expand toward metro
New York and Philly.
Although I believe additional
deals are a virtual certainty, OceanFirst is still integrating the Sun
deal and will soon start to see meaningful expense leverage. At the same
time, OceanFirst has the flexibility to expand lending further and a
low-cost/low-beta deposit base to fund it. OceanFirst shares have
slightly outperformed regional banks indices over the past quarter and still look modestly undervalued today.
Read more here:
OceanFirst Financial Executing Well Ahead Of Deal-Driven Leverage
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