RED BANK, N.J., April 18, 2024 (GLOBE NEWSWIRE) -- OceanFirst Financial Corp. (NASDAQ:O) (the "Company"), the holding company for OceanFirst Bank N.A. (the "Bank"), announced net income available to common stockholders of $27.7 million, or $0.47 per diluted share, for the quarter ended March 31, 2024, an increase from $26.9 million, or $0.46 per diluted share, for the corresponding prior year period, and $26.7 million, or $0.46 per diluted share, for the prior linked quarter. Selected performance metrics are as follows (refer to "Selected Quarterly Financial Data" for additional information):   For the Three Months Ended, Performance Ratios (Annualized): March 31,   December 31,   March 31, 2024     2023     2023   Return on average assets 0.82 %   0.78 %   0.82 % Return on average stockholders' equity 6.65     6.41     6.77   Return on average tangible stockholders' equity (a) 9.61     9.33     10.00   Return on average tangible common equity (a) 10.09     9.81     10.53   Efficiency ratio 59.56     60.38     60.78   Net interest margin 2.81     2.82     3.34   (a) Return on average tangible stockholders' equity and return on average tangible common equity ("ROTCE") are non-GAAP ("generally accepted accounting principles") financial measures and exclude the impact of intangible assets and goodwill from both assets and stockholders' equity. ROTCE also excludes preferred stock from stockholders' equity. Refer to "Explanation of Non-GAAP Financial Measures" and the "Non-GAAP Reconciliation" tables for additional information regarding non-GAAP financial measures. Core earnings1 for the quarter ended March 31, 2024 was $25.6 million, or $0.44 per diluted share, a decrease from $32.7 million, or $0.55 per diluted share, for the corresponding prior year period, and a decrease from $26.3 million, or $0.45 per diluted share, for the prior linked quarter. Core earnings PTPP1 for the quarter ended March 31, 2024 was $36.2 million, or $0.62 per diluted share, as compared to $46.1 million, or $0.78 per diluted share, for the corresponding prior year period, and $37.9 million, or $0.65 per diluted share, for the prior linked quarter. Selected performance metrics are as follows:   For the Three Months Ended,   March 31,   December 31,   March 31, Core Ratios1 (Annualized):   2024       2023       2023   Return on average assets   0.76 %     0.77 %     1.00 % Return on average tangible stockholders' equity   8.91       9.20       12.15   Return on average tangible common equity   9.36       9.67       12.80   Efficiency ratio   61.05       60.02       56.49   Core diluted earnings per share $ 0.44     $ 0.45     $ 0.55   Core PTPP diluted earnings per share   0.62       0.65       0.78   Key developments for the recent quarter are described below: Net Interest Margin Stabilization: Net interest margin of 2.81% decreased slightly from the prior linked quarter of 2.82%. Capital Accretion: The Company continued to build capital, while also resuming share repurchases. The Company's estimated common equity tier 1 capital ratio, book value and tangible book value per share were 11.0%, $28.32 and $18.63, respectively, and increased approximately 15 basis points, $0.36 and $0.28 from the prior linked quarter.2 The Company repurchased 957,827 shares totaling $15.1 million. Expense Management: The Company continued to exercise disciplined expense control. Excluding the FDIC special assessment charge of $418,000 in the current quarter and $1.7 million in the prior linked quarter, non-interest expense decreased slightly to $58.3 million, from $58.5 million. Asset Quality: Asset quality metrics remain strong as criticized and classified assets, non-performing loans, and loans 30 to 89 days past due as a percentage of total loans receivable were 1.65%, 0.35%, and 0.17%, respectively. These metrics continue to reflect strong credit performance and remain low compared to pre-pandemic levels. Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company's results, "We are pleased to report on our first quarter results, which reflected a stable net interest margin, prudent balance sheet management, and expense discipline. Additionally, we continued to build capital while also resuming share repurchases during the quarter." Mr. Maher added, "The Company is well positioned to bolster shareholder value through a variety of different economic and industry outlooks." The Company's Board of Directors declared its 109th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 17, 2024 to common stockholders of record on May 6, 2024. The Company's Board of Directors also declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2024 to preferred stockholders of record on April 30, 2024. 1 Core earnings and core earnings before income taxes and provision for credit losses ("PTPP or Pre-Tax-Pre-Provision"), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation expense, net (gain) loss on equity investments, net loss on sale of investments, net gain on sale of trust business, Federal Deposit Insurance Corporation ("FDIC") special assessment, and the income tax effect of these items, (collectively referred to as "non-core" operations). PTPP excludes the aforementioned pre-tax "non-core" items along with income tax expense (benefit) and provision for credit losses. Refer to "Explanation of Non-GAAP Financial Measures" and the "Non-GAAP Reconciliation" tables for additional information regarding non-GAAP financial measures.2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders' equity and total assets. Refer to "Explanation of Non-GAAP Financial Measures" and the "Non-GAAP Reconciliation" tables for additional information regarding non-GAAP financial measures. Results of Operations The current quarter results were impacted by the following matters. Net interest income and margin were modestly impacted by a continued mix-shift to and repricing of higher cost funding that offset the increase in yields on interest-earning assets. Deposit betas increased modestly to 40%, from 38% in the prior linked quarter3. Additionally, the results included several non-recurring matters, which included a $1.2 million gain on sale of a portion of the Company's trust business, a $1.2 million write-off in income tax expense, $418,000 in FDIC special assessments, and $345,000 in bank owned life insurance death benefits. 3 Deposit beta measures the change in the interest rates paid for interest-bearing deposit accounts versus the change in the federal funds target rate. Represents the deposit beta for total deposits (interest-bearing and non-interest bearing) for the current rate cycle (since December 31, 2021). Net Interest Income and Margin March 31, 2024 vs. March 31, 2023 Net interest income decreased to $86.2 million, from $98.8 million, primarily reflecting the net impact of the higher interest rate environment. Net interest margin decreased to 2.81%, from 3.34%. Excluding the impact of purchase accounting accretion and prepayment fees of 0.04% for both quarters, net interest margin decreased to 2.77%, from 3.30%. Net interest margin decreased primarily due to the increase in cost of funds outpacing the increase in yield on average interest-earning assets. Average interest-earning assets increased by $340.3 million, primarily driven by growth of $163.9 million in total loans and $143.0 million in securities. The average yield for interest-earning assets increased to 5.26%, from 4.68%. The cost of average interest-bearing liabilities increased to 3.03%, from 1.74%, primarily due to higher cost of deposits. The total cost of deposits (including non-interest bearing deposits) increased to 2.31%, from 0.88%. Average interest-bearing liabilities increased by $636.4 million, primarily due to an increase in total deposits, partly offset by a decrease in Federal Home Loan Bank ("FHLB") advances, which reflect a shift in funding sources. March 31, 2024 vs. December 31, 2023 Net interest income decreased by $1.6 million, reflecting a slight decrease in net interest margin to 2.81%, from 2.82%, as the increase in cost of funds was offset by yields of average interest earning assets. Excluding the impact of purchase accounting accretion and prepayment fees of 0.04% and 0.05% for the respective quarters, net interest margin remained flat at 2.77% for both periods. Average interest-earning assets increased by $1.2 million, and the yield on average interest-earning assets increased to 5.26%, from 5.16% primarily due to securities purchased at the end of the prior linked quarter. The total cost of average interest-bearing liabilities increased to 3.03%, from 2.91%, primarily due to higher cost of deposits and increased other borrowings. Total cost of deposits (including non-interest bearing deposits) increased to 2.31%, from 2.22%. Average interest-bearing liabilities increased by $91.2 million, primarily due to a mix shift from deposits to other borrowings. Provision for Credit Losses Provision for credit losses for the quarter ended March 31, 2024 was $591,000, as compared to $3.0 million and $3.2 million for the corresponding prior year period and prior linked quarter, respectively. The current quarter provision was driven by the net effect of continued uncertainty impacting the banking industry and improvements in macro-economic forecasts. Net loan charge-offs were $349,000 for the quarter ended March 31, 2024 primarily related to a single consumer borrower, as compared to net loan recoveries of $47,000 for the corresponding prior year period. Net loan charge-offs were $35,000 in the prior linked quarter. Refer to "Asset Quality" section for further discussion. Non-interest Income March 31, 2024 vs. March 31, 2023 Other income increased to $12.3 million, as compared to $2.1 million. The current quarter's other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of its trust business. The prior year period's other income was adversely impacted by non-core operations of $7.5 million, primarily related to losses on sale of investments. Excluding non-core operations, other income decreased by $370,000, primarily driven by a decrease in fees and service charges of $686,000 on lower retail deposit fees and title activity. March 31, 2024 vs. December 31, 2023 Other income in the prior linked quarter was $11.9 million and included non-core operations of $2.2 million related to net gains on equity investments. Excluding non-core operations, other income decreased by $484,000, primarily due to a decrease in fees and service charges of $842,000, which was driven by the same factors as noted above. Non-interest Expense March 31, 2024 vs. March 31, 2023 Operating expenses decreased to $58.7 million, as compared to $61.3 million. Operating expenses were adversely impacted by non-core items of $418,000, from an FDIC special assessment in the current year, and $92,000 from merger related and net branch consolidation expenses in the prior year. Excluding non-core operations, operating expenses decreased $3.0 million. The primary drivers were decreases in professional fees of $2.4 million and compensation and employee benefits expenses of $1.2 million, which reflect the net realization of the Company's performance improvements initiatives and strategic investments made over the past year. March 31, 2024 vs. December 31, 2023 Operating expenses in the prior linked quarter was $60.2 million and included non-core operations of $1.7 million, related to an FDIC special assessment. Excluding non-core operations, operating expenses decreased by $272,000. Income Tax Expense The provision for income taxes was $10.6 million for the quarter ended March 31, 2024, as compared to $8.7 million for the same prior year period, and $8.6 million for the prior linked quarter. The effective tax rate was 27.1% for the quarter ended March 31, 2024, as compared to 23.7% for the same prior year period, and 23.6% for the prior linked quarter. The current quarter's effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. Financial Condition March 31, 2024 vs. December 31, 2023 Total assets decreased by $119.3 million to $13.42 billion, from $13.54 billion, primarily due to decreases in loans and debt securities. Total loans decreased by $68.9 million to $10.13 billion, from $10.19 billion, due to loan payoffs and lower loan originations. Held-to-maturity debt securities decreased by $31.1 million to $1.13 billion, from $1.16 billion, primarily due to principal repayments. Other assets increased by $20.3 million to $200.0 million, from $179.7 million, primarily due to increase in market values associated with customer interest rate swap programs. Total liabilities decreased by $123.2 million to $11.75 billion, from $11.88 billion primarily related to lower deposits and a funding mix shift. Deposits decreased by $198.1 million to $10.24 billion, from $10.43 billion. Time deposits decreased to $2.32 billion, from $2.45 billion, or 22.7% and 23.4% of total deposits, respectively, which was primarily related to planned runoff of brokered time deposits which decreased by $88.1 million. The loan-to-deposit ratio was 98.9%, as compared to 97.7%. FHLB advances decreased by $190.2 million to $658.4 million, from $848.6 million due to mix shift in funding sources to other borrowings, which increased by $229.3 million to $425.7 million, from $196.5 million, as a result of lower cost funding availability. Other liabilities increased by $36.4 million to $337.1 million, from $300.7 million, primarily due to an increase in the market values associated with customer interest rate swaps and related collateral received from counterparties. Capital levels remain strong and in excess of "well-capitalized" regulatory levels at March 31, 2024 including the Company's common equity tier one capital ratio which increased to 11.0%, up approximately 15 basis points from December 31, 2023. Total stockholders' equity increased to $1.67 billion, as compared to $1.66 billion, primarily reflecting net income, partially offset by capital returns comprising of share repurchases and dividends. For the quarter ended March 31, 2024, the Company repurchased 957,827 shares totaling $15.1 million representing a weighted average cost of $15.64. The Company had 1,976,611 shares available for repurchase under the repurchase program authorized. Additionally, accumulated other comprehensive loss decreased by $1.4 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax. The Company's tangible common equity2 increased by $4.7 million to $1.10 billion. The Company's stockholders' equity to assets ratio was 12.41% at March 31, 2024, and tangible common equity to tangible assets ratio increased by 11 basis points during the quarter to 8.49%, primarily due to the drivers described above. Book value per common share increased to $28.32, as compared to $27.96. Tangible book value per common share2 increased to $18.63, as compared to $18.35. Asset Quality March 31, 2024 vs. December 31, 2023 Overall asset quality metrics remained stable for the quarter. The Company's non-performing loans increased to $35.0 million from $29.5 million and represented 0.35% and 0.29% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 191.86%, as compared to 227.21%. The level of 30 to 89 days delinquent loans decreased to $17.5 million, from $19.2 million. The Company's allowance for loan credit losses was 0.66% of total loans for each period. Refer to "Provision for Credit Losses" section for further discussion. The Company's asset quality, excluding purchased with credit deterioration ("PCD") loans, was as follows. Non-performing loans increased to $31.5 million, from $26.4 million. The allowance for loan credit losses as a percentage of total non-performing loans was 213.34%, as compared to 254.64%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, decreased to $15.4 million, from $17.7 million. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $74.2 million, or 0.73% of total loans, as compared to $74.7 million, or 0.73% of total loans. Explanation of Non-GAAP Financial Measures Reported amounts are presented in accordance with GAAP. The Company's management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items. Annual Meeting The Annual Meeting of Stockholders will be held on Tuesday, May 21, 2024 at 8:00 a.m. Eastern Time, as previously announced. The meeting will be held virtually through a live webcast. Stockholders as of the record date of March 25, 2024 are invited to participate in the live event. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com - Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2024 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Conference Call As previously announced, the Company will host an earnings conference call on Friday, April 19, 2024 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 606038. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (866) 813-9403, access code 203920, from one hour after the end of the call until May 17, 2024. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section. OceanFirst Financial Corp.'s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.4 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. 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.  Forward-Looking Statements In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe", "expect", "intend", "anticipate", "estimate", "project", "will", "should", "may", "view", "opportunity", "potential", or similar expressions or expressions of confidence. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Company's lending area, real estate market values in the Company's lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company's deposit portfolio, including the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company's market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company's operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the effect of the Company's rating under the Community Reinvestment Act, the impact of pandemics on our operations and financial results and those of our customers and the Bank's ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(dollars in thousands)     March 31,   December 31,   March 31,       2024     2023     2023     (Unaudited)       (Unaudited) Assets             Cash and due from banks   $ 130,422   $ 153,718   $ 496,193 Debt securities available-for-sale, at estimated fair value     744,944     753,892     452,195 Debt securities held-to-maturity, net of allowance for securities credit losses of $1,058 at March 31, 2024, $1,133 at December 31, 2023 and $1,043 at March 31, 2023 (estimated fair value of $1,029,965 at March 31, 2024, $1,068,438 at December 31, 2023 and $1,149,673 at March 31, 2023)     1,128,666     1,159,735     1,245,424 Equity investments     103,201     100,163     101,007 Restricted equity investments, at cost     85,689     93,766     115,750 Loans receivable, net of allowance for loan credit losses of $67,173 at March 31, 2024, $67,137 at December 31, 2023 and $60,195 at March 31, 2023     10,068,209     10,136,721     9,986,949 Loans held-for-sale     4,702     5,166     1,885 Interest and dividends receivable     52,502     51,874     47,342 Premises and equipment, net     119,211     121,372     126,019 Bank owned life insurance     266,615     266,498     262,654 Assets held for sale     28     28     2,719 Goodwill     506,146     506,146     506,146 Core deposit intangible     8,669     9,513     12,470 Other assets     199,974     179,661     198,422           Total assets   $ 13,418,978   $ 13,538,253   $ 13,555,175 Liabilities and Stockholders' Equity             Deposits   $ 10,236,851   $ 10,434,949   $ 9,993,095 Federal Home Loan Bank advances     658,436     848,636     1,346,566 Securities sold under agreements to repurchase with customers     66,798     73,148     70,938 Other borrowings     425,722     196,456     195,663 Advances by borrowers for taxes and insurance     28,187     22,407     31,198 Other liabilities     337,147     300,712     307,344           Total liabilities     11,753,141     11,876,308     11,944,804 Stockholders' equity:             OceanFirst Financial Corp. stockholders' equity     1,665,112     1,661,163     1,609,553 Non-controlling interest     725     782     818 Total stockholders' equity     1,665,837     1,661,945     1,610,371           Total liabilities and stockholders' equity   $ 13,418,978   $ 13,538,253   $ 13,555,175 OceanFirst Financial Corp.CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)     For the Three Months Ended,     March 31,   December 31,   March 31,       2024       2023     2023       |-------------------- (Unaudited) -------------------- | Interest income:             Loans   $ 137,121     $ 137,110   $ 121,720   Debt securities     19,861       15,444     14,286   Equity investments and other     4,620       7,880     3,028        Total interest income     161,602       160,434     139,034   Interest expense:             Deposits     59,855       59,467     21,330   Borrowed funds     15,523       13,143     18,902        Total interest expense     75,378       72,610     40,232        Net interest income     86,224       87,824     98,802   Provision for credit losses     591       3,153     3,013        Net interest income after provision for credit losses     85,633       84,671     95,789   Other income:             Bankcard services revenue     1,416       1,531     1,330   Trust and asset management revenue     526       610     612   Fees and service charges     4,473       5,315     5,159   Net gain on sales of loans     357       309     20   Net gain (loss) on equity investments     1,923       2,176     (6,801 ) Income from bank owned life insurance     1,862       1,427     1,281   Commercial loan swap income     138       29     701   Other     1,591       464     (229 )      Total other income     12,286       11,861     2,073   Operating expenses:             Compensation and employee benefits     32,759       32,126     33,920   Occupancy     5,199       5,218     5,239   Equipment     1,130       1,172     1,205   Marketing     990       1,112     982   Federal deposit insurance and regulatory assessments     3,135       4,386     1,749   Data processing     5,956       6,430     6,154   Check card processing     1,050       991     1,281   Professional fees     2,732       2,858     5,098   Amortization of core deposit intangible     844       976     1,027   Branch consolidation expense, net     —       —     70   Merger related expenses     —       —     22   Other operating expense     4,877       4,920     4,562        Total operating expenses     58,672       60,189     61,309        Income before provision for income taxes     39,247       36,343     36,553   Provision for income taxes     10,637       8,591     8,654        Net income     28,610       27,752     27,899   Net (loss) income attributable to non-controlling interest     (57 )     70     16        Net income attributable to OceanFirst Financial Corp.     28,667       27,682     27,883   Dividends on preferred shares     1,004       1,004     1,004        Net income available to common stockholders   $ 27,663     $ 26,678   $ 26,879   Basic earnings per share   $ 0.47     $ 0.46   $ 0.46   Diluted earnings per share   $ 0.47     $ 0.46   $ 0.46   Average basic shares outstanding     58,789       59,120     58,774   Average diluted shares outstanding     58,791       59,123     58,918   OceanFirst Financial Corp.SELECTED LOAN AND DEPOSIT DATA(dollars in thousands)   LOANS RECEIVABLE     At       March 31,   December 31,   September 30,   June 30,   March 31,         2024       2023       2023       2023       2023   Commercial:                       Commercial real estate - investor     $ 5,322,755     $ 5,353,974     $ 5,334,279     $ 5,319,686     $ 5,296,661   Commercial real estate - owner-occupied     914,582       943,891       957,216       981,618       986,366   Commercial and industrial       677,176       666,532       652,119       620,284       622,201        Total commercial       6,914,513       6,964,397       6,943,614       6,921,588       6,905,228   Consumer:                       Residential real estate       2,965,276       2,979,534       2,928,259       2,906,556       2,881,811   Home equity loans and lines and other consumer ("other consumer")     245,859       250,664       251,698       255,486       252,773        Total consumer       3,211,135       3,230,198       3,179,957       3,162,042       3,134,584        Total loans       10,125,648       10,194,595       10,123,571       10,083,630       10,039,812   Deferred origination costs (fees), net     9,734       9,263       8,462       8,267       7,332   Allowance for loan credit losses       (67,173 )     (67,137 )     (63,877 )     (61,791 )     (60,195 )      Loans receivable, net     $ 10,068,209     $ 10,136,721     $ 10,068,156     $ 10,030,106     $ 9,986,949   Mortgage loans serviced for others   $ 89,555     $ 68,217     $ 52,796     $ 50,820     $ 50,421     At March 31, 2024 Average Yield                     Loan pipeline (1):                       Commercial 8.18 %   $ 66,167     $ 124,707     $ 50,756     $ 39,164     $ 236,550   Residential real estate 6.91       57,340       49,499       66,682       58,022       61,258   Other consumer 8.82       13,030       8,819       13,795       18,621       20,589        Total 7.71 %   $ 136,537     $ 183,025     $ 131,233     $ 115,807     $ 318,397     For the Three Months Ended   March 31,   December 31,   September 30,   June 30,   March 31,   2024     2023     2023     2023     2023   Average Yield                     Loan originations:                       Commercial 7.99 %   $ 123,010   $ 94,294   $ 90,263   $ 197,732   $ 200,504 Residential real estate 6.78       78,270     113,227     92,299     100,542     65,580 Other consumer 8.94       11,405     16,971     17,019     22,487     15,927      Total 7.60 %   $ 212,685   $ 224,492