TOMS RIVER, N.J. – OceanFirst Bank is cutting 114 jobs as it exits its residential loan origination business, marking a significant shift for the 120-year-old Toms River-based lender.
The layoffs, disclosed in a WARN notice filed with the New Jersey Department of Labor & Workforce Development, take effect Dec. 18.
The move comes as OceanFirst restructures amid growing competition from large mortgage wholesalers and fintech firms dominating the residential lending space.
Key Points
- OceanFirst Bank will eliminate 114 positions as it exits residential loan origination.
- The bank will partner with Embrace Home Loans to continue offering mortgage products.
- The shift reflects a wider trend of job cuts and business model changes across New Jersey’s financial sector.
OceanFirst pivots from residential to commercial banking
Jill Hewitt, the bank’s senior vice president and director of corporate communications and marketing, said the decision was part of a “strategic partnership” designed to streamline operations while expanding profitability in commercial banking.
“Residential lending has become dominated in recent years by large-scale wholesale mortgage companies and financial technology firms,” Hewitt said. “By transitioning our residential loan origination business model to this strategic partnership, OceanFirst will continue our focus on growing the commercial bank with significant investments to drive growth and profitability.”
The bank confirmed it will partner with Embrace Home Loans beginning in the fourth quarter to maintain mortgage services. Hewitt noted that affected employees will receive severance and career transition assistance.
Expansion plans follow previous acquisitions
The restructuring comes a year after OceanFirst’s acquisition of Garden State Home Loans, which boosted its loan officer count by more than 60% in anticipation of lower interest rates. Despite a 50-basis-point rate cut by the Federal Reserve last year, refinancing activity stalled amid renewed rate hikes and weak housing demand.
OceanFirst, which employs roughly 930 people across 40 branches in five states, reported $13.24 billion in total assets and $10.35 billion in deposits as of June 30.
Executives double down on commercial growth
Chairman and CEO Christopher Maher told analysts in July that the company’s near-term focus is on organic growth. Recent investments include hiring 49 new commercial bankers who have generated $115 million in deposits and nearly 200 new business relationships. “We’re seeing meaningful lending opportunities and early success gathering deposits,” Maher said. “We expect an increase in net interest income in the third quarter and continued improvement to margins in the second half of the year.”
Layoffs reflect broader financial sector cuts
The OceanFirst cuts join a growing list of layoffs across New Jersey’s financial industry. Recent WARN filings show job reductions at Prudential Financial, TD Bank, Valley National Bank, JPMorgan Chase, Citibank, Barclays, and Ernst & Young, underscoring ongoing consolidation and cost-cutting measures across the state’s banking sector.