OceanFirst Financial and Flushing Financial have agreed to a $579 million all-stock merger that will significantly expand their banking footprint across New Jersey and New York and create a stronger, more competitive regional financial institution.
OceanFirst Financial Corp., the parent company of OceanFirst Bank, and Flushing Financial Corp., which owns Flushing Bank, this week disclosed they have entered into a definitive merger agreement that will unite the two lenders in an all-stock transaction valued at approximately $579 million based on closing stock prices.
Under the terms of the agreement, Flushing Bank will merge into OceanFirst Bank. The combined organization is expected to have about $23 billion in assets, approximately $17 billion in total loans, and around $18 billion in total deposits, spanning 71 retail branches across key markets in New Jersey, Long Island, Queens, Brooklyn, and Manhattan.
In a strategic move to support the merger and bolster capital, OceanFirst also announced a $225 million investment from affiliates of Warburg Pincus, which will receive newly issued equity securities as part of the transaction. Once completed, Flushing’s shareholders are expected to hold roughly 30% of the combined company’s outstanding shares, Warburg Pincus about 12%, and existing OceanFirst shareholders approximately 58%.
The transaction is expected to close in the second quarter of 2026, pending regulatory approvals, shareholder consent from both institutions, and customary closing conditions. The combined bank will operate with a strengthened governance structure that includes representatives from both legacy boards and Warburg Pincus.
Executives from both organizations have characterized the merger as a powerful step toward expanding banking market reach and enhancing competitive capabilities. Financial projections shared by the companies suggest the merger will deliver attractive returns, including estimated earnings per share accretion by 2027 and solid return metrics supported by a robust balance sheet.
