The Federal Reserve Board granted final approval for the merger of Flushing Financial Corporation and OceanFirst Financial Corp. on April 24 2026, clearing the last regulatory hurdle and allowing the transaction to move toward closing, expected no later than June 1 2026. Earlier approvals from the New York State Department of Financial Services on March 23 2026 and the Office of the Comptroller of the Currency on April 6 2026, together with shareholder approval on April 2 2026, completed the regulatory package required for the deal.
The merger is an all‑stock transaction valued at $579 million, based on OceanFirst’s closing stock price of $19.76 on December 26 2025. Flushing stockholders will receive 0.85 shares of OceanFirst common stock for each share of Flushing common stock. In addition, OceanFirst secured a $225 million equity investment from Warburg Pincus, contingent on the merger’s closing, providing capital to support growth and integration efforts.
Upon completion, the combined entity will have approximately $23 billion in assets, $17 billion in total loans, and $18 billion in total deposits, operating through 71 retail branches across New Jersey, Long Island, and New York. Christopher Maher, OceanFirst’s Chairman and CEO, will serve as CEO of the combined holding company, while John Buran, Flushing’s President and CEO, will become non‑executive chairman of the board.
Financially, OceanFirst reported Q1 2026 earnings of $0.43 per share, missing analyst estimates of $0.45, and revenue of $103.20 million, below the consensus estimate of $143.25 million. The revenue miss reflects weaker loan growth and lower interest income, which outweighed higher operating expenses. In Q4 2025, OceanFirst’s EPS of $0.41 beat estimates of $0.38, driven by stronger loan growth and interest income. Flushing reported Q4 2025 EPS of $0.32, missing estimates of $0.35, amid a decline in revenue over the past three years, though recent earnings growth has been noted. The EPS miss is attributable to revenue decline and higher costs relative to the prior year’s $0.14 EPS.
The merger aims to create a scaled, high‑performing regional bank with a significant presence across attractive markets. By combining Flushing’s distribution channel in Long Island and New York with OceanFirst’s relationship‑driven model, the new entity is positioned to accelerate organic growth, achieve cost synergies, and enhance profitability. The $225 million equity investment from Warburg Pincus signals external confidence in the combined entity’s prospects and provides capital to support strategic initiatives.
The final regulatory approval reduces the risk of the merger falling through, providing a clearer path to closing and reinforcing investor confidence in the transaction’s viability. The deal’s completion will strengthen the combined bank’s competitive position, expand its branch network, and create a more diversified asset base, potentially improving resilience in a tightening regulatory environment.
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