OceanFirst Financial in Toms River, N.J., has shed some nonperforming mortgages.
The $2.3 billion-asset company disclosed in a regulatory filing Wednesday that its bank had sold $23.1 million of nonperforming loans for a cash consideration of $18.8 million, resulting in a $4.3 million chargeoff.
OceanFirst also said it would evaluate the overall level of its loan-loss allowance given "the improved risk profile of its loan portfolio," adding that the net impact on third-quarter earnings would likely be less than the amount of the chargeoff.
The company disclosed that the "vast majority" of the loans were originated before to the financial crisis and represented roughly 57% of its total nonperforming loans at June 30.
The company will release its third-quarter earnings on Oct. 23.
