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Two New Jersey-based banks have agreed to merge, the pair jointly announced Wednesday.According to the deal, Ocean City-based Ocean Shore Holding Co. — the holding company and parent of Ocean City Home Bank — will merge with and into Toms River-based OceanFirst Financial Corp. — the holding company and parent of OceanFirst Bank. Ocean City Home Bank will also merge with and into OceanFirst Bank.

 “We are excited to welcome Ocean City Home Bank customers and employees to the OceanFirst family. Our two institutions have developed our respective community banks with a consistent vision, effectively sharing similar histories. With our mutual understanding of our community bank business models and local market focus, OceanFirst and Ocean Shore can leverage this synergy to create one of the most highly valued banking institutions in the Mid-Atlantic region,” Christopher D. Maher, CEO and president of OceanFirst, said in a prepared statement.

The merger is valued at approximately $22.47 per Ocean Shore share, or approximately $145.6 million. The combined bank will have about $5.3 billion in total assets, $4 billion in total deposits, $4 billion in total gross loans and 61 banking locations throughout New Jersey.

The bank will now rank as the fourth largest New Jersey-based banking institution by deposit market share, the banks said.

“This transaction represents a unique opportunity for OceanFirst to capitalize on its recent entry into southern New Jersey through the acquisition of an extremely valuable deposit franchise coupled with significant efficiencies and low execution risk. Ocean Shore’s residential focus creates strategic optionality for prudent commercial real estate growth with strong cash flows.  We look forward to continuing to provide extraordinary customer care to all OceanFirst and Ocean Shore customers, as well as providing enhanced value to our stockholders,” Maher said in a prepared statement.

Upon completion of the merger, shareholders of Ocean Shore stock will be able to receive $4.35 in cash and 0.97 shares of OceanFirst stock for each share of Ocean Shore stock they have.

The transaction is expected to close late in the fourth quarter of 2016 or early in the first quarter of 2017.

 “The combination with OceanFirst provides several strategic benefits for all Ocean Shore stakeholders, including improved operating scale, access to additional product lines and increased shareholder liquidity,” Steven E. Brady, CEO and president of Ocean Shore, said in a prepared statement.

When the two banks merge, three Ocean Shore board members will join OceanFirst’s board, including Brady. Brady will also be named vice chairman for the southern New Jersey division.

Piper Jaffray & Co. is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to OceanFirst. Sandler O’Neill Partners L.P. is serving as financial advisor and Kilpatrick Townsend & Stockton LLP is serving as legal counsel to Ocean Shore.