OceanFirst-Partners merger faces regulatory delay

Partners Bancorp in Salisbury, Maryland, says it no longer expects its sale to OceanFirst Financial in Red Bank, New Jersey, to close by June 30.

In a securities filing Tuesday, Partners said the $11.7 billion-asset OceanFirst informed it that decisions on “certain of [OceanFirst’s] regulatory applications” tied to the merger will take longer than expected.

The companies, which announced their agreement in November, were initially aiming to complete the deal in the first half of this year.

“Neither OceanFirst nor Partners can give any assurance as to the timing of receipt of the regulatory approvals or whether any conditions may be imposed in connection therewith,” the $1.6 billion-asset Partners said in its filing.

It did not provide more details about the outstanding regulatory approvals, and OceanFirst did not immediately respond to a request for comment.

Partners and its subsidiaries are supervised by the Federal Reserve and state regulators in Delaware and Virginia. OceanFirst is a holding company supervised by the Fed and has a national bank overseen by the Office of the Comptroller of the Currency.

OceanFirst’s acquisition of Partners Bancorp would give it a retail presence in the Washington suburbs and nearby areas. Partners is the parent of the Bank of Delmarva and Virginia Partners Bank.

OceanFirst has been on an acquisition spree in recent years. It bought the $2 billion-asset Sun Bancorp in 2018 and Two River Bancorp and Country Bank in 2020.