OceanFirst (NASDAQ: OCFC) trims $1.3B NYC rent-regulated loan exposure
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
OceanFirst Financial Corp. has completed the previously announced sale of $1.3 billion of multifamily loans, largely in the New York City area and mostly subject to rent regulations. The more than 1,400 loans were originated by Flushing Bank and came onto the balance sheet through OceanFirst’s June 1, 2026 merger with Flushing Financial Corporation.
The sold portfolio included loan collateral with rent‑regulated exposure of $736 million. Following the transaction, OceanFirst states that loans with more than 50% rent‑regulated units now represent less than 2.5% of total assets, reducing the company’s exposure to rent regulation risk. Management characterizes this as part of a broader balance sheet repositioning, with more detail to be provided in the second quarter earnings release and conference call.
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Insights
OceanFirst sheds $1.3B NYC multifamily loans to reduce rent-regulation risk.
OceanFirst completed the sale of a $1.3 billion multifamily loan portfolio concentrated in New York City, most of which is tied to rent-regulated properties. These loans were recently acquired via the Flushing Financial merger and are now being recycled as part of balance sheet repositioning.
Management highlights that loan collateral with rent-regulated exposure totaled $736 million in the sold pool. After the transaction, loans with more than 50% rent-regulated units account for less than 2.5% of total assets, which may change the bank’s risk profile toward regulated multifamily housing.
The company indicates that fuller detail on earnings and capital effects will appear in the Q2 2026 earnings release and call. Until those figures are disclosed, the direct financial impact—such as any gain or loss on sale, capital ratios, or redeployment of proceeds—remains unspecified in this disclosure.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Multifamily loans sold: $1.3 billion
Number of loans in portfolio: More than 1,400 loans
Rent-regulated collateral in portfolio: $736 million
+4 more
7 metrics
Multifamily loans sold
$1.3 billion
Aggregate balance of NYC-focused multifamily portfolio sold
Number of loans in portfolio
More than 1,400 loans
Count of multifamily loans included in the sold portfolio
Rent-regulated collateral in portfolio
$736 million
Loan collateral with rent-regulated exposure within the sold pool
Post-sale rent-regulated exposure
Less than 2.5% of total assets
Loans with >50% rent-regulated units after the sale
Bank asset size
$23 billion
Size of OceanFirst Bank N.A. as described in company overview
Merger completion date
June 1, 2026
Date OceanFirst completed merger with Flushing Financial Corporation
Loan sale announcement date
June 29, 2026
Date OceanFirst announced completion of the multifamily loan sale
Key Terms
multifamily loans, rent regulations, balance sheet repositioning, forward-looking statements, +1 more
5 terms
multifamily loans financial
"the Bank has completed the previously announced sale of $1.3 billion of multifamily loans"
Multifamily loans are mortgages used to buy or refinance residential buildings that contain multiple rental units, such as apartment complexes, duplexes or townhome communities. They matter to investors because the loan’s interest rate, repayment schedule and lender rules directly affect rental income, property value and overall risk—think of the loan as the financial engine that determines how profitable and stable a building investment will be.
rent regulations financial
"The portfolio is largely in the New York City metropolitan area, and the majority is subject to NYC rent regulations."
balance sheet repositioning financial
"Further details of the balance sheet repositioning and impact on the combined company will be reported"
forward-looking statements regulatory
"this press release contains certain forward-looking statements within the meaning of the federal securities laws"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
allowance for credit losses financial
"the adequacy of and changes in the economic assumptions and methodology for computing the allowance for credit losses"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): June 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File No.) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(732 )240-4500
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange in which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 8.01 OTHER EVENTS
On June 29, 2026, OceanFirst Financial Corp. (the "Company") issued a press release announcing the completion of the previously announced sale of multifamily loans that the Company acquired in its recently completed acquisition of Flushing Financial Corporation. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
| (d) | EXHIBITS | |||||||
99.1 | Press Release dated | June 29, 2026 | ||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OCEANFIRST FINANCIAL CORP. | ||||||||
| Dated: | June 29, 2026 | /s/ Patrick S. Barrett | ||||||
| Patrick S. Barrett | ||||||||
| Senior Executive Vice President and Chief Financial Officer | ||||||||
 | Press Release | |||||||
Exhibit 99.1
Company Contact:
Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
1.888.623.2633 ext. 27507
Email: pbarrett@oceanfirst.com
FOR IMMEDIATE RELEASE
OCEANFIRST FINANCIAL CORP. COMPLETES PREVIOUSLY ANNOUNCED SALE OF $1.3 BILLION OF NEW YORK CITY MULTIFAMILY LOANS
RED BANK, N.J. June 29, 2026. OceanFirst Financial Corp. (NASDAQ: “OCFC”) (“OceanFirst”), the holding company for OceanFirst Bank N.A. (the “Bank”), today announced that the Bank has completed the previously announced sale of $1.3 billion of multifamily loans. The portfolio is largely in the New York City metropolitan area, and the majority is subject to NYC rent regulations.
“The transaction has enabled us to rebalance our Commercial Real Estate and Multifamily exposure while reducing our exposure to rent regulation risk," said Christopher Maher, Chief Executive Officer of OceanFirst. "Given the dynamics of rent regulated properties in the current marketplace, we believe it makes strategic sense to meaningfully reduce that exposure."
The sold portfolio consisted of more than 1,400 multifamily loans with an aggregate balance of $1.3 billion. The purchase price was consistent with initial valuation estimates disclosed at the time the acquisition was announced. Loan collateral with rent-regulated exposure accounted for $736 million of the sold portfolio. The sold portfolio was originated by Flushing Bank and was acquired by the Bank 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.
Further details of the balance sheet repositioning and impact on the combined company will be reported in the Company’s second quarter earnings release and second quarter earnings conference call.
BofA Securities served as exclusive financial advisor and selling agent to OceanFirst and Morgan, Lewis & Bockius LLP served as its legal counsel.
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About OceanFirst
OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $23 billion regional bank serving business and retail customers throughout New Jersey, New York, Long Island, and the major metropolitan areas from Massachusetts through Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, please visit us at www.oceanfirst.com.
2
Forward-Looking Statements
In addition to historical information, this press release contains certain forward-looking statements within the meaning of the federal securities laws, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. Forward-looking statements may be identified by the use of the words such as “ estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “strategy,” “future,” “opportunity,” “may,” “could,” “target,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. These statements are based on various assumptions, whether or not identified in this document, and on the current expectations of the Company’s management and are not predictions of actual performance, and, as a result, are subject to risks and uncertainties. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict, may differ from assumptions and many are beyond the control of the Company. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, the effects of a potential future federal government shutdown, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, our ability to enter into new markets and capitalize on growth opportunities, the adequacy of and changes in the economic assumptions and methodology for computing the allowance for credit losses, availability of capital, competition, our ability to maintain and increase market share and control expenses, changes in investor sentiment and consumer spending, borrowing and savings habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks and fraud, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations.
The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Investor Relations Inquiries:
OceanFirst Financial Corp.
Alfred Goon
SVP Corporate Development and Investor Relations
investorrelations@oceanfirst.com
3
FAQ
What transaction did OceanFirst Financial Corp. (OCFC) announce in this 8-K?
OceanFirst completed the previously announced sale of $1.3 billion of multifamily loans. The loans are largely in the New York City metropolitan area and were mostly subject to NYC rent regulations, originating from Flushing Bank and acquired through the recent Flushing Financial merger.
How large was the multifamily loan portfolio OceanFirst (OCFC) sold?
The sold multifamily portfolio had an aggregate balance of $1.3 billion and consisted of more than 1,400 loans. These loans were concentrated in the New York City area, with a significant share tied to rent‑regulated properties inherited from the Flushing Financial acquisition.
How much rent-regulated exposure was included in OceanFirst’s sold portfolio?
Loan collateral with rent‑regulated exposure accounted for $736 million of the $1.3 billion sold portfolio. The company notes that the majority of the loans are subject to New York City rent regulations, which management cited as a key reason for reducing this particular risk exposure.
What is OceanFirst’s rent-regulated loan exposure after the sale?
After the sale, OceanFirst states that loans with more than 50% rent‑regulated units represent less than 2.5% of total assets. This indicates a significantly smaller share of the balance sheet tied to rent‑regulated multifamily properties compared with the exposure that came from the Flushing Bank portfolio.
How does this loan sale relate to OceanFirst’s merger with Flushing Financial?
The multifamily loans were originated by Flushing Bank and entered OceanFirst’s balance sheet through its merger with Flushing Financial completed June 1, 2026. The sale effectively repositions part of the acquired portfolio, particularly those loans concentrated in New York City rent‑regulated housing.
Will OceanFirst (OCFC) provide more detail on the financial impact of the sale?
OceanFirst plans to report additional detail on the balance sheet repositioning and its impact in the second quarter earnings release and second quarter earnings conference call. This future disclosure is expected to address how the transaction affects earnings, capital measures, and overall financial performance.