Flushing Financial Corporation's stock is experiencing a significant decline following the announcement of a public offering of 4.59 million shares priced at $15.25 each. The offering, managed by Keefe Bruyette & Woods, Piper Sandler, and Raymond James & Associates, aims to raise $70 million in gross proceeds. The company plans to use the funds to bolster its capital ratios and potentially reposition its available-for-sale securities portfolio, as well as consider the sale of certain commercial real estate loans. This move comes amid a challenging environment for banks with commercial real estate exposure, as rising interest rates have led to unrealized losses on their balance sheets.
The offering price represents an 11.6% discount to the stock's last sale, which has contributed to the downward pressure on Flushing Financial's shares. The company had approximately 29.1 million shares outstanding prior to the offering, and the new issuance is expected to close around December 16, 2024, subject to customary conditions. The decision to raise capital follows a trend among regional lenders, who have been seeking to strengthen their financial positions in response to market conditions.
Flushing Financial (FFIC) shares have dropped 12.09% to $15.165 as of 10:20 am on December 13th, down from the previous close of $17.25.