Flushing Financial Corporation (NASDAQ: FFIC) and OceanFirst Financial Corp. (NASDAQ: OCFC) have agreed to a definitive all‑stock merger that will combine their holding companies and create a larger regional bank with a stronger presence in New Jersey, Long Island and New York. The transaction will see OceanFirst Bank N.A. survive the bank merger while Flushing Bank will be absorbed into it, and the combined entity will operate 71 retail branches with roughly $23 billion in assets, $17 billion in loans and $18 billion in deposits.
The deal values Flushing at approximately $579 million, based on OceanFirst’s closing stock price of $19.76 on December 26, 2025, and an exchange ratio of 0.85 OceanFirst shares for each Flushing share. OceanFirst will also raise $225 million in equity from private‑equity firm Warburg Pincus, giving the investor about 12 % of the combined company’s outstanding equity. The transaction is expected to close in the second quarter of 2026, subject to regulatory approval and shareholder consent.
Strategically, the merger positions the combined bank as a more competitive regional player by leveraging OceanFirst’s technology and product suite with Flushing’s extensive distribution network and deep expertise in the Asian‑market community banking niche. Management has emphasized that the deal will preserve Flushing’s community‑banking culture while expanding OceanFirst’s footprint in key New York markets. Christopher Maher, OceanFirst’s CEO, will lead the combined company, and John Buran, Flushing’s CEO, will serve as non‑executive chairman, ensuring continuity of leadership and culture.
Financially, both banks posted strong Q3 2025 earnings that underscore the rationale for the merger. Flushing reported earnings per share of $0.35, beating analyst expectations of $0.31 by 12.9 % and up from $0.26 a year earlier, while OceanFirst posted $0.36 versus $0.35 expected, a 2.86 % beat. The combined entity is projected to generate EPS accretion of 16 % and a return on average tangible common equity (ROATCE) of 13 % by 2027, with tangible book value dilution of about 6 % that is expected to be recovered within three years. These metrics reflect the anticipated cost synergies, revenue growth opportunities and operational efficiencies that the two banks expect to realize.
The merger is part of a broader consolidation trend in the regional and community banking sector, as banks seek scale to invest in technology, expand product offerings and improve risk management. By combining their branch networks and capital bases, the new entity will be better positioned to compete with larger national banks while maintaining a strong focus on local customer relationships. The deal also provides a robust capital foundation, bolstered by Warburg Pincus’s equity injection, which will support the integration process and future growth initiatives.
The transaction will be finalized in Q2 2026 after regulatory review and shareholder approval. Both companies have indicated that they will maintain their existing management teams and operational structures during the transition, with a focus on seamless integration and preserving the community‑banking ethos that has defined Flushing for nearly a century. The merger is expected to deliver value to shareholders through enhanced profitability, expanded market reach and a stronger balance sheet.
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