By Chicago Times Magazine –
April 25, 2026
In a move that significantly reshapes the mid-tier banking landscape of the Tri-State area, the Federal Reserve Board has officially greenlit the merger of OceanFirst Financial Corp. and Flushing Financial Corporation. The order, designated as FRB Order No. 2026-13, paves the way for OceanFirst to absorb the Uniondale-based Flushing Bank, creating a regional powerhouse with approximately $23.3 billion in consolidated assets.
The approval comes despite a period of public scrutiny and two adverse comments filed during the federal notice period. However, after a comprehensive review of the financial, managerial, and competitive factors, the Board determined that the union serves the public interest without creating a monopoly.
Before the merger, OceanFirst sat as the 129th largest insured depository organization in the U.S., while Flushing held the 166th spot. By joining forces, OceanFirst will climb the ranks to become the 94th largest bank in the nation.
The impact will be felt most acutely in New York, the primary site of overlapping operations. While both banks previously held less than 1% of the state’s total deposits individually, the combined entity—operating under the OceanFirst Bank (OCF Bank) banner—will now become the 29th largest insured depository institution in New York, controlling roughly $7.9 billion in local deposits.
The Combined Post-Merger Entity:
- Total Assets: ~$23.3 Billion
- Total Deposits: ~$18.3 Billion
- National Rank: 94th Largest
- NY State Rank: 29th Largest
The road to approval wasn’t without its bumps. The Federal Reserve received two formal objections centered on OceanFirst’s past lending practices. Specifically, commenters pointed to a 2024 Consent Order with the Department of Justice regarding alleged “redlining” practices between 2018 and 2022. Critics argued that approving a merger before the 2029 expiration of that Consent Order was “premature.”
In its defense, OceanFirst maintained that it has treated all customers fairly and entered the settlement only to avoid litigation costs. The bank represented to the Board that it has already completed all substantive actions required by the DOJ, barring ongoing monitoring.
“OceanFirst represents that it maintains fair lending compliance management systems and that examiners did not cite substantive concerns… in OCF Bank’s most recent CRA examination,” the Board noted in its report.
Ultimately, the Board was swayed by the banks’ current performance ratings. Both OCF Bank and Flushing Bank currently hold “Outstanding” ratings under the Community Reinvestment Act (CRA).
From a competitive standpoint, the Federal Reserve found the Metro New York City market—a massive region spanning 26 counties across four states—remains “moderately concentrated.” Even after the merger, the market will host 187 different competitors, ensuring that consumers still have ample choices for their banking needs.
The Department of Justice also reviewed the proposal and concluded that the merger would not have a significantly adverse effect on competition. As for the customers of Flushing Bank, OceanFirst has pledged a seamless transition, offering a broader range of products including trust and wealth management services to the newly acquired clientele.
The transaction, structured as a share exchange, will see Flushing common stock converted into OceanFirst shares. With the Office of the Comptroller of the Currency (OCC) having already approved the bank-level merger earlier this month, the two institutions are now cleared to begin their final integration.
