In a major development in the U.S. banking sector, OceanFirst Financial Corp. and Flushing Financial Corporation have announced a definitive merger agreement. The transaction is valued at approximately $579 million and will be executed as an all-stock deal, according to a joint statement released by the companies.
As part of the transaction, global private equity firm Warburg Pincus will make a $225 million strategic equity investment in the combined entity, strengthening the bank’s capital position and supporting future growth plans.
Combined Bank to Have Over $23 Billion in Assets
Following the completion of the merger, the combined banking group is expected to hold approximately $23 billion in total assets. The merged entity will have:
- Around $17 billion in loans
- Nearly $18 billion in deposits
- A network of 71 bank branches
The expanded footprint will significantly strengthen the bank’s presence across New Jersey, New York City, and Long Island, creating a larger and more competitive regional banking institution.
About OceanFirst Financial Corp.
OceanFirst Financial Corp. is listed on NASDAQ under the ticker OCFC. It is the holding company for OceanFirst Bank N.A. and primarily operates in New Jersey and nearby markets.
The bank is known for its relationship-based banking model, with a strong focus on commercial lending and community banking services.
About Flushing Financial Corporation
Flushing Financial Corporation, traded on NASDAQ as FFIC, is the parent company of Flushing Bank.
The bank has a well-established presence in Queens, Brooklyn, Manhattan, and Long Island, and is recognized for its deep roots in community banking and retail financial services.
Role of Warburg Pincus
Warburg Pincus, a global private equity firm with decades of experience in financial services investments, will invest $225 million in the merged company.
The strategic investment is expected to enhance the combined bank’s balance sheet and provide additional capital to support long-term growth and expansion initiatives.
Post-Merger Shareholding Structure
Upon completion of the transaction, the expected ownership of the combined company will be:
- OceanFirst shareholders: approximately 58%
- Flushing Financial shareholders: approximately 30%
- Warburg Pincus: approximately 12%
Financial Impact and Synergies
According to company projections, the merger is expected to improve financial performance over the medium term. Key expected outcomes include:
- Approximately 16% earnings per share (EPS) accretion by 2027
- Improved return ratios and operating efficiency
- A stronger and more diversified balance sheet
Management expects cost synergies, scale benefits, and improved market reach to support long-term profitability.
Expected Timeline and Approvals
The merger is expected to close in the second quarter of 2026, subject to:
- Regulatory approvals
- Shareholder approvals from both companies
- Completion of customary closing conditions
Sign of Ongoing Banking Sector Consolidation
This transaction reflects the broader trend of consolidation in the U.S. banking sector, as regional banks seek scale, efficiency, and competitive strength amid evolving regulatory and economic conditions.
Source: OceanFirst Bank news , Warburg Pincus news
