OceanFirst Financial gains day after settling US redlining charges

OceanFirst Financial

19/09/2024 18:25

** OceanFirst Financial Corp's  OCFC.O  shares climb 3.3% to
$18.73
    ** Raymond James says settlement of U.S. redlining charges
will ease regulatory scrutiny, which has limited OCFC's M&A
ability 
    ** On Wednesday, OCFC's banking unit agreed to pay $15.1 mln
to settle a Department of Justice lawsuit accusing it of illegal
redlining in parts of New Jersey
    ** Redlining refers to the illegal practice of denying loans
to customers based on their race, color or national origin
    ** Raymond James, however, said an M&A for OCFC is unlikely
in the near term 
    ** The bank prefers to grow its existing businesses instead
of pursuing acquisitions when its valuation multiple is below
historical levels, brokerage says
    ** Stock has gained 4.4% YTD as of last close

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com))