Flushing Financial Corporation, the parent holding company for Flushing Savings Bank (FSB), announced recently that it redeemed in full $70 million of preferred stock issued to the U.S. Treasury under the Capital Purchase Program of the Troubled Asset Relief Program (TARP), plus accrued dividends to date.
Flushing Financial Corporation also received notice from the U.S. Treasury that the warrant granted to the Treasury under the same program was reduced by one-half from 751,611 shares to 375,806 shares as a result of the recent successful public stock offering.
“We are pleased to have completed the redemption of our TARP-related capital,” said John R. Buran, President and Chief Executive Office. “The redemption was approved by the Treasury following a recommendation by our regulator, the Office of Thrift Supervision. We also plan to negotiate for the repurchase of our remaining TARP warrant, which was reduced by one-half, as a result of our recent public stock offering of over $100 million.”
“We have been throughout this recession a well-capitalized financial company with strong earnings,” Buran continued. “We have continued to actively lend in our New York Metropolitan market. The success of our recent stock offering and improved tangible common equity has further improved our ability to compete in our market. The new equity and redemption of TARP will allow us to continue to more effectively grow as we leverage our strong capital position to deliver value to our shareholders.”
