OceanFirst–Flushing Merger Wins Shareholder Backing and Key Regulatory Nod

Overview

• OceanFirst Financial and Flushing Financial said they received shareholder approval for their deal, with New York’s Department of Financial Services and the U.S. Comptroller of the Currency also granting approvals, while Federal Reserve sign-off is still required.
• The banks put the transaction’s value at $579 million when they agreed to merge in December.
• At closing, Flushing Bank would combine into OceanFirst Bank, forming a lender with about $23 billion in assets, $17 billion in loans, and $18 billion in deposits operating 71 branches.
• The companies plan for OceanFirst’s Christopher Maher to serve as CEO after closing, with Flushing’s John Buran slated to become non-executive chair and a 17-member board drawn from both firms and a Warburg Pincus representative.
• Affiliates of funds managed by Warburg Pincus committed to invest $225 million in new OceanFirst equity if the merger closes, providing added capital for the combined bank.