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:
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2027 return on average tangible common equity of about 13%
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2027 return on average assets near 1.00%
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2027 net interest margin of roughly 3.2%
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2027 non-interest expense to average assets of about 1.7%
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Allowance coverage ratio of 1.5% at closing
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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.
