Flushing Financial seeks to raise $70 million
From CNBC: 2024-12-12 18:17:39
Flushing Financial, a New York-based commercial real estate lender, aims to raise $70 million through selling low-yielding bonds and loans backed by commercial real estate. The move comes as banks struggle with unrealized losses due to interest rate hikes. Flushing Financial has about $9.3 billion in assets and plans to sell shares priced between $15 to $15.50.
With the Federal Reserve’s interest rate hikes impacting banks, Flushing Financial is among many community banks facing challenges. Despite a 5% increase in its shares this year, the bank is seeking to raise capital to improve its financial position. Regulators have been quietly urging banks to bolster their capital levels to weather economic uncertainties.
CEO John Buran expressed optimism about the bank’s future despite ongoing challenges in the rate environment. Flushing Financial’s decision to sell equity comes amid a rebound in bank stock prices and the Fed’s easing cycle. Investors anticipate more banks will follow suit in raising capital to strengthen their positions in the market.