New York City, January 3, 2026
OceanFirst Financial Corp. has announced an all-stock acquisition of Flushing Financial Corp. valued at approximately $579 million. This merger aims to enhance OceanFirst’s presence in the competitive New York City metropolitan banking market. Expectations are set for completion in the second quarter of 2026, pending regulatory approvals. The merger will create an entity with $23 billion in assets and 71 retail branches. Both banks assure customers of service continuity amidst the transition, though investor caution remains following the announcement.
New York City, NY
OceanFirst Financial to Acquire Flushing Financial in $579M Deal
Strategic move to bolster market presence in New York
In a significant development for the financial landscape of New York City, OceanFirst Financial Corp. has announced plans for an all-stock acquisition of Flushing Financial Corp. valued at approximately $579 million. This merger is poised to position OceanFirst as a formidable player in the deposit-rich markets of the New York City metropolitan area, particularly in counties including Suffolk, Nassau, Queens, Brooklyn, and Manhattan.
This strategic transaction, slated for completion in the second quarter of 2026, hinges on obtaining necessary regulatory approvals and shareholder consent. The newly formed entity will boast around $23 billion in assets, $17 billion in total loans, and $18 billion in total deposits spread across 71 retail branches. In terms of ownership, OceanFirst shareholders will control approximately 58% of the combined company, while Flushing shareholders will own 30%. Warburg Pincus, contributing $225 million to the deal, will hold the remaining 12% stake.
Strengthening Market Presence
This acquisition represents a substantial leap in OceanFirst’s growth strategy, leveraging Flushing’s established customer base and distribution networks to deepen its market involvement in one of the country’s most competitive banking environments. OceanFirst Bank, which has primarily served New Jersey and areas between Massachusetts and Virginia, aims to broaden its reach and diversify its offerings through Flushing’s 94-year legacy of providing personal and business banking services to the New York metropolitan community.
Leadership Post-Merger
Leadership of the new organization will reflect a blend of both entities, with Christopher Maher, Chairman and CEO of OceanFirst, continuing as the CEO following the merger. John Buran, President and CEO of Flushing, will serve as the non-executive Chairman of the Board. Additionally, Todd Schell, a Managing Director at Warburg Pincus, is set to join the board, demonstrating a strong commitment from both the public and private sectors to the merger’s success.
Customer Assurance and Service Continuity
In light of this major transition, Flushing Bank customers can rest assured there will be no immediate changes to their banking services. All accounts, loan terms, and banking functionalities will remain intact, allowing customers to continue utilizing their current account numbers, checks, debit cards, and online banking configurations without disruption. This continuity aims to provide customers with peace of mind during the acquisition phase.
Investor Perspective and Market Outlook
Conclusion
The acquisition of Flushing Financial by OceanFirst promises to reshape the financial services landscape in New York City. With a combined asset value of approximately $23 billion and a strategic focus on market expansion, this merger highlights the resilience and innovation within the banking sector. As OceanFirst prepares to enhance its footprint in New York, both organizations are committed to a seamless integration process that prioritizes customer service and operational efficiency.
As we keep an eye on the unfolding developments, it’s essential to continue supporting local financial institutions that contribute to economic growth and innovation in New York City. Community engagement and investment in such institutions are fundamental in fostering a robust economic future.
Frequently Asked Questions (FAQ)
What is the value of the acquisition?
The acquisition is valued at approximately $579 million.
When is the merger expected to close?
The merger is expected to close in the second quarter of 2026, pending regulatory approvals and shareholder consent.
What will be the ownership structure of the combined company?
OceanFirst shareholders will own about 58% of the combined company, Flushing shareholders 30%, and Warburg Pincus will hold approximately 12%.
How will this affect Flushing Bank customers?
Customers of Flushing Bank have been assured that there will be no immediate changes to their banking services. Accounts, loan terms, and banking services will remain the same for now.
What is the strategic significance of this acquisition for OceanFirst?
This acquisition accelerates OceanFirst’s expansion into the New York City metropolitan area, particularly in the deposit-rich markets of Suffolk, Nassau, Queens, Brooklyn, and Manhattan counties.
What are the potential risks associated with this merger?
Following the merger announcement, Raymond James downgraded both OceanFirst and Flushing Financial stocks, citing limited near-term upside and elevated execution risks associated with the deal.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquisition Value | $579 million |
| Expected Closing Date | Second quarter of 2026 |
| Combined Assets | Approximately $23 billion |
| Combined Loans | Approximately $17 billion |
| Combined Deposits | Approximately $18 billion |
| Number of Branches | 71 retail branches |
| Ownership Structure | OceanFirst shareholders 58%, Flushing shareholders 30%, Warburg Pincus 12% |
| Leadership Post-Merger | Christopher Maher as CEO, John Buran as non-executive Chairman, Todd Schell joining the board |
| Customer Impact | No immediate changes to banking services; accounts, loan terms, and services remain the same |
Now Happening on X
- @pulse2news (Jan 2, 2026): OceanFirst Financial and Flushing Financial have agreed to an all-stock merger creating a regional bank with $23 billion in assets. View on X
- @FinTech_Futures (Jan 2, 2026): OceanFirst is set to acquire Flushing Financial in a $579 million all-stock deal. View on X
- @NewsFromWSB (Dec 30, 2025): OceanFirst shares dropped 5.5% after announcing the $579M merger with Flushing Financial, resulting in combined assets of $23B. View on X
- @bankbeat (Jan 2, 2026): OceanFirst Financial is acquiring Flushing Financial in a $579 million all-stock deal to expand in the NYC metro area. View on X
- @Jefffeldman (Dec 30, 2025): A major merger in the NYC banking sector between OceanFirst and Flushing Bank. View on X
- @CHItraders (Dec 30, 2025): OceanFirst to acquire Flushing in a $579M all-stock deal, building a $23B bank with a $225M investment from Warburg Pincus. View on X
- @AsburyParkPress (Jan 2, 2026): OceanFirst plans its biggest deal yet by acquiring Flushing Bank in New York. View on X
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