174 Flushing Bank workers in Uniondale face layoffs after merger

Half of Flushing Bank's employees at its Uniondale headquarters are scheduled to be laid off beginning in August following the bank's merger with a New Jersey-based financial institution, according to state filings.

Flushing Financial Corp., Flushing Bank's former holding company, plans to lay off 174 of its 347 employees in Uniondale after completing its merger June 1 with OceanFirst Financial Corp., according to a state Worker Adjustment and Retraining Notification Act notice.

"The merger of OceanFirst Financial Corp. and Flushing Financial Corporation combines two organizations with long histories and a shared commitment to serving our customers and the community," Jill Apito Hewitt, senior vice president and director of corporate communications and community impact for OceanFirst, said in an emailed statement.

Hewitt added that there are no planned branch closures as a result of the merger.

"We remain dedicated to providing exceptional financial products and services while delivering an outstanding client experience," she said. 

Flushing Bank has nine branches across Long Island, including locations in Garden City, Melville and Port Jefferson Station, according to the bank's website.

The layoffs are scheduled to occur from Aug. 10 through Dec. 31, according to the state notice.

New York's WARN Act generally requires covered employers to give workers and government agencies 90 days' notice before certain mass layoffs or plant closings.

Mariano Torras, an Adelphi University economics professor, said that bank mergers can sometimes lead to higher prices for existing customers. 

"The peer-reviewed evidence on bank mergers consistently shows reduced lending and higher fees for customers of absorbed banks," Torras said. "The pattern is well-established enough that I'd expect the same dynamics to play out on Long Island."

OceanFirst, a regional bank with approximately $23 billion in assets, founded in 1902, announced the completion of its merger with Flushing on June 1.

The merger expanded OceanFirst's total number of branch locations to 71, the company said in announcing the deal's completion.

"Today marks an important milestone in our growth strategy and the next chapter for our combined organization," Christopher Maher, CEO of OceanFirst, said in a statement last month. The merger "immediately scales our presence in the deposit-rich markets of Long Island and the New York City boroughs."