Two Regional Banks Complete $579M Merger Deal to Strengthen Northeast Banking Presence

2025-12-31 14:42:39

OceanFirst Financial Corp. and Flushing Financial Corp. have finalized a definitive merger agreement to combine their operations through an all-stock transaction. Based on OceanFirst’s December 26, 2025 closing price of $19.76 per share, the deal carries a total valuation of approximately $579 million. This strategic combination marks a significant consolidation in the regional banking sector, positioning the merged entity as a major player across key Northeast markets.

Strategic Merger Structure and Equity Composition

Upon deal closure, Flushing Bank will integrate into OceanFirst Bank, with OceanFirst Bank serving as the surviving banking institution. The capital structure reflects a carefully balanced arrangement: Flushing shareholders will receive shares representing roughly 30% of the combined company, while Warburg Pincus—which is committing $225 million in new equity investment—will hold approximately 12% of outstanding shares. Existing OceanFirst shareholders will maintain approximately 58% ownership in the merged entity.

Leadership and Governance Framework

Christopher Maher will continue as Chief Executive Officer of the combined holding company. John Buran, currently leading Flushing operations, will transition to serve as non-executive Chairman of the board following the merger completion. The board structure will include 17 directors: 10 from the existing OceanFirst board, 6 representing Flushing, and 1 designee from Warburg Pincus, who will be represented by Todd Schell as Managing Director.

Market Expansion and Competitive Positioning

The merger creates a high-performing regional banking institution with strengthened competitive positioning across New Jersey, Long Island, and New York markets. This geographic consolidation enables the combined bank to optimize operations and enhance service delivery across these attractive and strategically important regions.

Timeline and Closing Requirements

The transaction is anticipated to close during the second quarter of 2026, contingent upon securing necessary regulatory approvals, shareholder approval from both OceanFirst and Flushing shareholders, and satisfaction of standard closing conditions typical for transactions of this magnitude.

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