OceanFirst Bank is going regional.
Last week, the Red Bank-based bank announced it is merging with Uniondale-based
Flushing Bank in a $579-million merger.
The transaction, an all-stock deal, will create a high-performing regional bank under the
Ocean First name that will have a significant presence across attractive New Jersey,
Long Island and New York markets.
OceanFirst CEO Chris Maher will remain in that role in the new company.
The strategic acquisition accelerates OceanFirst’s organic growth in New York by
immediately expanding its presence within the highly attractive, deposit-rich markets of
Suffolk, Nassau, Queens, Brooklyn and Manhattan counties.
The combined company, which still must be approved by regulators, is expected to
have approximately $23 billion in assets, $17 billion in total loans, and $18 billion in total
deposits across 71 retail branches.
OceanFirst concurrently announced that it has entered into an investment agreement
with affiliates of funds managed by Warburg Pincus LLC, which is fully committed to
invest $225 million for newly issued equity securities subject to the closing of the
merger.
The transaction is expected to close in the second quarter of 2026, subject to the
receipt of regulatory approvals, approval by OceanFirst and Flushing shareholders, and
the satisfaction of other customary closing conditions. The equity capital raise is
expected to close concurrently with the merger, subject to the concurrent closing of the
merger and other closing conditions.
Maher obviously was thrilled.
“This acquisition represents a natural extension of our proven growth strategy,” he said.
“We are bringing together two highly complementary organizations, leveraging
Flushing’s 95+ year distribution channel in Long Island and New York alongside
OceanFirst’s relationship-driven business model and robust products and services.
“We share a disciplined credit philosophy and long-term commitment to the
communities we serve and are highly confident that this combination will enable us to
better support our customers and deliver meaningful value for shareholders.”
Flushing Bank CEO John Buran will join OceanFirst as the non-executive Chairman of
the Board after the closing of the merger. The board of directors of the combined
company will consist of 17 directors: ten from the existing OceanFirst board, six from
the existing Flushing board and one from Warburg Pincus.
“We are excited to partner with OceanFirst, an organization that shares our values and
long-term vision,” Buran. “This transaction creates meaningful opportunities for our
clients, employees, and communities while preserving the relationship-focused culture
that has defined our bank for nearly a century. We look forward to taking the next step
in our journey with OceanFirst and for our shareholders to participate in the future
upside resulting from creating a scaled, more profitable franchise together.”
Warburg Pincus Managing Director Todd Schell also will join the board.
“This combination marries OceanFirst’s scalable platform and robust product suite with
Flushing’s distribution network and deep customer relationships,” he said. “We have
known both franchises for a long time – they share an underlying culture and philosophy
and are complementary in ways that unlock strategic value for the combined entity. This
is a natural combination that can produce strong returns for shareholders.”
