Flushing Financial Corporation

OceanFirst Financial Corp. reported a net loss of $3.0 million, or $0.04 per diluted share, for the second quarter of 2026, compared to net income of $16.2 million a year earlier, as the company absorbed $42.8 million in merger-related expenses from its June 1 acquisition of Flushing Financial Corporation. Core earnings, which exclude non-recurring items, rose to $30.5 million, or $0.43 per share, from $17.7 million a year ago, while net interest income climbed to $120.7 million and the net interest margin expanded 12 basis points to 3.05%. The Flushing deal added $8.69 billion in assets, $6.19 billion in loans, and $7.44 billion in deposits, and the company subsequently sold $1.31 billion of multifamily loans from the acquired portfolio at a price of 92.25% to reduce commercial real estate concentration. Total assets ended the quarter at $23.27 billion, and the board declared its 118th consecutive quarterly cash dividend of $0.20 per share, payable on August 21, 2026.

OceanFirst Financial Corp. has completed the previously announced sale of $1.3 billion of multifamily loans, largely in the New York City metropolitan area and mostly subject to NYC rent regulations. The sold portfolio consisted of approximately 1,400 multifamily loans, of which $736 million had rent-regulated exposure. The portfolio was originated by Flushing Bank and acquired by OceanFirst through its merger on June 1, 2026. Following the sale, the company’s exposure to loans with greater than 50% rent-regulated units represents less than 2.5% of total assets. CEO Christopher Maher said the transaction rebalances the company’s commercial real estate and multifamily exposure while meaningfully reducing rent regulation risk.