Flushing Financial Corp. se hunde un 8,94 % ante nuevo escrutinio de la fusión

Flushing Financial Corp. plunged 8.9402% in pre-market trading on December 31, 2025, amid renewed scrutiny over its pending merger with OceanFirst Financial Corp.

Raymond James downgraded Flushing Financial to Market Perform from Outperform, citing limited near-term upside and elevated execution risks following the all-stock $579 million merger announcement. Analyst Steve Moss noted the deal price reflects Flushing’s earnings challenges in a difficult rate environment and incorporates deal-related uncertainties, despite a favorable regulatory outlook. The transaction, valued at $16.65 per share (79% of tangible book value), was described as “roughly at-the-market,” with longer-term benefits contingent on managing New York’s rent-regulated multifamily exposure risks.

The downgrade also highlighted potential dilution and slower growth for OceanFirst, as the merger complicates its core deposit franchise and C&I lending strategy. Moss warned that stock warrants issued alongside the capital raise could hinder share appreciation, requiring several quarters to validate the deal’s merits. While Raymond James adjusted 2026 and 2027 EPS estimates upward for the combined entity, it emphasized reduced near-term catalysts for outperformance.

Flushing Financial’s shares have faced mounting pressure in the final weeks of 2025 due to macroeconomic uncertainties, regulatory developments, and valuation concerns. Analysts remain cautious about whether the merger will yield long-term value or amplify existing risks tied to its multifamily portfolio and regulatory scrutiny. Investors have also expressed wariness about the capital structure implications of the merger, particularly the dilution risk posed by the warrants and new equity issuance.

Despite these challenges, some industry observers see potential in the combined entity's expanded balance sheet and market reach, particularly in New York and New Jersey. However, the execution risks and integration complexities remain a key focus for both shareholders and the broader market. A definitive outcome is expected within the first quarter of 2026, pending final regulatory approval and investor response to the capital restructuring.