OceanFirst Financial Corp. has struck a deal to buy Flushing Financial Corp., setting the stage for another major chapter in the fast-moving consolidation of U.S. community banking.
The companies announced a definitive merger agreement Monday under which Flushing Bank will be folded into OceanFirst Bank in an all-stock transaction valued at about $579 million. The price reflects OceanFirst’s closing share price of $19.76 on Dec. 26, the banks said.
A Regional Bank Takes Shape
Once completed, the transaction will create a regional lender spanning New Jersey, Long Island and New York. The combined institution is expected to control roughly $23 billion in assets, $17 billion in total loans and $18 billion in deposits, operating through 71 retail branches.
Alongside the merger announcement, OceanFirst disclosed a $225 million investment agreement with affiliates of funds managed by Warburg Pincus LLC. The investment, tied to newly issued equity securities, is fully committed but remains subject to the merger’s completion.
