Strategic Combination: OceanFirst and Flushing Banks Merge to Strengthen Northeast Regional Presence

MEVHunterX · 2026-01-04T15:16:38+00:00

OceanFirst Financial and Flushing Financial have agreed to a $579 million all-stock merger, consolidating operations and enhancing their competitive position in the Northeast. The deal will create a more significant presence in key markets, with leadership transitioning post-merger. Completion is expected in Q2 2026, pending regulatory approvals.

MEVHunterX

2026-01-04 15:16:38

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OceanFirst Financial Corp. and Flushing Financial Corp. have formalized a merger agreement that will reshape the regional banking landscape across the Northeast. The all-stock transaction is valued at approximately $579 million, calculated based on OceanFirst’s closing stock price of $19.76 as of December 26, 2025.

Transaction Structure and Financial Terms

The merger will consolidate operations with Flushing Bank integrating into OceanFirst Bank, which will serve as the surviving entity. The ownership structure of the combined organization reflects contributions from three key stakeholder groups: existing OceanFirst shareholders will maintain approximately 58% stake, Flushing shareholders receiving merger consideration will hold around 30%, while Warburg Pincus affiliates will control approximately 12% through a $225 million equity investment that is fully committed pending merger completion.

Geographic Expansion and Competitive Positioning

The combination creates a stronger competitor in high-value markets including New Jersey, Long Island, and New York. This expanded footprint positions the merged entity to capitalize on regional growth opportunities and enhance its competitive standing among established financial institutions serving these attractive corridors.

Leadership and Governance Framework

Christopher Maher, the incumbent Chairman and Chief Executive Officer of OceanFirst, will lead the combined organization post-merger. John Buran, currently President and CEO of Flushing, transitions to non-executive Chairman following completion. The board composition expands to 17 directors: ten representatives from OceanFirst’s existing board, six from Flushing’s current slate, and one nominee from Warburg Pincus—specifically Todd Schell, Managing Director at the investment firm.

Timeline and Regulatory Pathway

The transaction is projected to close during the second quarter of 2026, contingent on receipt of necessary regulatory approvals, shareholder authorization from both institutions, and satisfaction of customary closing requirements.

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