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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.

Leadership Sees Strategic Fit

“This acquisition represents a natural extension of our proven growth strategy,” said Christopher Maher, chairman and chief executive officer of OceanFirst. He said the combination unites two complementary franchises, blending Flushing’s nearly century-old distribution network in Long Island and New York with OceanFirst’s relationship-driven banking model.

Maher emphasized that both institutions share a disciplined credit culture and a long-term focus on community banking, positioning the merged company to deliver value to customers and shareholders.

Timing and Approvals

The banks expect the deal to close in the second quarter of 2026, pending regulatory approvals, shareholder votes and other customary conditions. OceanFirst said the Warburg Pincus-backed equity raise is expected to close concurrently with the merger.

Two Banks, Long Histories

Founded in 1902, Toms River-based OceanFirst is currently a $14.3 billion institution serving retail and business customers through 35 branches across New Jersey, plus locations in Philadelphia and New York.

Flushing Bank, established in 1929, operates 30 branches and runs online banking platforms under the iGObanking and BankPurely brands. As of Sept. 30, 2025, Flushing reported $8.8 billion in total assets.

OceanFirst said the deal will immediately deepen its presence in “deposit-rich markets” across Suffolk and Nassau counties and the New York City boroughs of Queens, Brooklyn and Manhattan.

Board and Management Structure

Maher will remain CEO of the combined organization. Flushing President and CEO John Buran will join as non-executive chairman of the board after the merger closes.

The post-merger board will consist of 17 directors: 10 from OceanFirst, six from Flushing and one representative from Warburg Pincus.

Buran said the transaction opens new opportunities for Flushing’s customers, employees and communities, calling it a step toward building a “scaled, more profitable franchise.”

Banking Industry in a Merger Wave

Consolidation Accelerates

The deal comes amid a surge in bank mergers nationwide. U.S. News & World Report cited S&P Global Intelligence data showing 52 deals announced in the third quarter of 2025, the highest level since 2021, driven by a more favorable regulatory climate and competitive pressures.

The Harvard Law School Forum on Corporate Governance has also pointed to growing regulatory acceptance of consolidation as a path to a stronger and more stable banking sector.

In New Jersey alone, Blue Foundry Bank and Fulton Financial recently agreed to a $243 million merger, while ConnectOne Bank earlier completed its combination with First National Bank of Long Island.

Financial Outlook

OceanFirst and Flushing project the deal will generate about 16% earnings-per-share accretion by 2027, an internal rate of return near 24%, and tangible book value dilution of roughly 6%, expected to be earned back within three years.

On a pro forma basis, the combined bank forecasts:

• 2027 return on average tangible common equity of about 13%

• 2027 return on average assets near 1.00%

• 2027 net interest margin of roughly 3.2%

• 2027 non-interest expense to average assets of about 1.7%

• Allowance coverage ratio of 1.5% at closing

• Common equity tier 1 capital ratio of 10.8%

A live conference call discussing the transaction was scheduled for Dec. 30 at 8 a.m., with presentation materials made available online.

In September, OceanFirst separately announced a strategic shift in its residential loan origination business that resulted in more than 100 job cuts.