DivestmentJun 8, 2026, 08:06 AM
OceanFirst to Sell $1.4B Multifamily Loans from Flushing Acquisition
AI Summary
OceanFirst Financial Corp. announced an agreement to sell $1.4 billion of multifamily loans, primarily acquired from its recent acquisition of Flushing Financial Corporation. This strategic move aims to reposition the balance sheet, significantly reduce the Bank's Commercial Real Estate concentration, and eliminate most of its exposure to rent-regulated properties in New York City. The sale is expected to be completed by the end of the second quarter, with proceeds used to purchase highly liquid, investment-grade securities.
Key Highlights
- OceanFirst agreed to sell $1.4 billion of multifamily loans.
- The loans represent a majority of those acquired from Flushing Financial Corporation.
- The sale will reduce the Bank's Commercial Real Estate concentration by $1.4 billion.
- It eliminates the majority of the Bank's exposure to rent-regulated properties in New York City.
- The agreed purchase price is consistent with initial valuation estimates.
- Loan sales are expected to be completed by the end of the second quarter.
- The acquisition of Flushing Financial Corporation closed on June 1, 2026.
Price Impact
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