Flushing Financial Corporation announced a public offering of $70,000,000 of its common stock, with an option for underwriters to purchase an additional $10,500,000. The company intends to use the net proceeds for general corporate purposes, including bolstering the Bank's capital ratios.
This capital raise is linked to a strategic balance sheet repositioning, which involves the potential sale of a substantial portion of its available-for-sale securities portfolio and certain commercial real estate loans. These moves are expected to generate a loss but are aimed at improving the company's overall financial health.
The offering is a key component of Flushing Financial's strategy to address challenges from higher interest rates and an inverted yield curve. By restructuring its balance sheet, the company seeks to enhance profitability and strengthen its capital base for future operations.
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