OceanFirst Acquires Flushing Financial in $579 Million Deal
OceanFirst Financial Corp., based in New Jersey, has concluded one of the final banking deals of 2025, purchasing Long Island-based Flushing Financial for a whopping $579 million. This strategic move comes as the culmination of the most dynamic year in bank mergers and acquisitions since 2021. The deal is anticipated to conclude in the second quarter of the upcoming year. [source](https://www.americanbanker.com/news/capital-raises-were-key-to-these-m-a-deals-will-more-banks-follow-suit)
Creating a Regional Banking Powerhouse
The fusion of these banks is expected to birth a regional heavyweight with $23 billion in assets and a network of 71 branches. These branches will be primarily located across New Jersey, New York, and the Philadelphia area. This development will undoubtedly intensify competition within the regional banking sector.
Following the merger, OceanFirst’s common stock is projected to account for about 58% of the combined company. Flushing stockholders, on the other hand, are expected to hold approximately 30% of the outstanding shares. The shares issued to Warburg Pincus, a private equity firm that will invest $225 million in the newly merged company, should make up around 12%.
Flushing Financial’s Recent History
The merger agreement comes a year after Flushing Financial raised $70 million to streamline its securities portfolio and offload about $100 million of commercial real estate loans. This action resulted in a $49 million loss in the fourth quarter. The fundraising was instigated by pressure from prominent bank investor Larry Seidman, who urged Flushing to sell itself last fall. [source](https://www.americanbanker.com/news/flushing-financials-70-million-capital-raise-prompts-sell-off-in-shares)
Flushing Financial has been striving to bolster its performance by adding branches in New York City, recruiting deposit bankers from Flagstar Bank, and specifically targeting Asian market deposits. “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,” said Flushing CEO John Buran in a statement.
OceanFirst’s Expansion Strategy
The acquisition of Flushing Financial marks the first proposed acquisition by OceanFirst Financial Corp. since 2022, when it had to call off its $186 million purchase of Partners Bancorp in Salisbury, Maryland due to extended regulatory approval timelines. [source](https://www.americanbanker.com/news/oceanfirst-and-partners-bancorp-call-off-merger-blaming-regulatory-delays)
The last successful acquisitions by OceanFirst were in 2020 when it simultaneously bought Two River Bancorp and Country Bank Holding Co. OceanFirst CEO Christopher Maher believes the current deal with Flushing Financial combines two “highly complementary organizations”.
Warburg Pincus Investment
Private equity firm Warburg Pincus is set to invest $225 million in the new entity, thus securing a seat on the board and a 12% ownership stake. Todd Schell, a managing director at Warburg Pincus who will join the bank’s board, described the merger as a “natural combination”. The equity capital raise is slated to close concurrently with the merger. [source](https://www.americanbanker.com/news/fed-traded-fast-merger-for-2023-private-equity-rescue)
Warburg Pincus, an established player in bank investments, was part of the purchase of EverBank in 2023 and the distressed acquisition of PacWest Bancorp by Banc of California the same year. [source](https://www.americanbanker.com/news/bank-owned-by-private-equity-investors-bets-big-on-fund-finance)
Conclusion
This merger, expected to create a $23 billion company, marks a significant turnaround for bank consolidation, especially among small regional and community institutions. The year 2025 has seen more than 170 bank deals, worth over $47 billion in value. The OceanFirst and Flushing Financial merger is a testament to this trend and sets exciting expectations for the industry’s future.
Source: Here
