OceanFirst Financial (OCFC) has agreed to acquire Flushing Financial (FFIC) in an all-stock deal valued at $579 million, the companies said Monday.

Under the deal, Flushing stockholders will be entitled to receive 0.85x of a share of OceanFirst common stock for each share of Flushing stock they hold.

The deal is expected to close in Q2, subject to regulatory and shareholder approvals.

Flushing Bank will merge into OceanFirst Bank to create a single regional bank with a presence in New Jersey, Long Island, and New York City.

OceanFirst also said it is receiving a $225 million investment via newly issued equity securities from Warburg Pincus.

Following the merger, the combined company is expected to hold $23 billion in assets, the companies said. Flushing stockholders are expected to hold around 30% of the new bank, Warburg Pincus 12%, and OceanFirst the rest, the companies said.

Christopher Maher, OceanFirst's chairman and chief executive, will serve as the chief executive of the combined holding company, while Flushing CEO John Buran will join as non-executive chairman, the companies said.

The transaction is expected to result in an estimated 2027 EPS accretion of approximately 16%, the companies said.