Flushing Financial seeks to raise $70 million to shore up capital as it unloads underwater bonds

Published On Dec 12, 2024, 6:07 PM

Flushing Financial, a commercial real estate lender based in New York, is looking to raise $70 million to strengthen its capital. The bank plans to sell off low-yielding bonds and loans backed by commercial real estate, including multifamily housing loans. This move is expected to incur losses, which necessitates the issuance of new stocks at a lower price than its current stock value. The bank has assets totaling approximately $9.3 billion as of September. Rising interest rates have negatively impacted banks with significant commercial real estate portfolios, and similar banks may also be prompted to raise capital soon.