(MENAFN - Baystreet) Media reports are circulating Friday that Flushing Financial (NASDAQ: FFIC), a New York-based commercial real estate lender, is seeking to raise $70 million to shore up its capital.

Sources say the bank's CEO, John Buran, has told potential investors that he intends to sell low-yielding bonds and loans backed by commercial real estate, including multifamily buildings, moves that would generate a loss and necessitate the sale of fresh stock

Bankers working on the deal have yet to finalize pricing, but it will likely be between $15 to $15.50 per share, according to one of the people, below the $17.25 level the stock closed at on Thursday.
The bank declined to comment at first, but later issued a release confirming the equity sale.

Banks with commercial real estate exposure have struggled after the Federal Reserve hiked interest rates through 2023, leaving them with unrealized losses on their balance sheet. New York Community Bank was forced to raise capital earlier this year after its stock sank amid concerns over its portfolio of commercial loans.

Most of the U.S. banks under pressure are community banks with under $10 billion in assets, like Flushing, which had about $9.3 billion in assets as of September.

FFIC shares dumped $2.09, or 12.1%, to $15.16.

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