Flushing Savings Bank Seeks Commercial Bank Charter

Posted by Orb Staff on October 12, 2012 No Comments
Categories : Residential Mortgage

12561_flushing-savings-bank Flushing Savings Bank Seeks Commercial Bank Charter Flushing Financial Corp., the Lake Success, N.Y.-based holding company for Flushing Savings Bank FSB, has filed an application with the New York State Department of Financial Services to combine the bank with its wholly-owned subsidiary, Flushing Commercial Bank. As a result of this combination, Flushing Saving Bank will convert from a federally-chartered savings bank to a New York state-chartered commercial bank operating under the name Flushing Bank.

‘Over the past several years, we have been building the capabilities to transition to a commercial bank,’ says John R. Buran, president and CEO of Flushing Financial Corp. ‘We have over $800 million in business and municipal deposits, representing over 25 percent of our deposit base. Our loan portfolio is primarily comprised of mortgage loans on income-producing properties and loans to businesses. Combined, these loan products represent over 90 percent of our loan portfolio at the end of second quarter.

‘In addition,’ Buran adds, ‘in our most recently reported quarter, more than one-third of our total loan originations were commercial and industrial loans. Based on the growth in this segment, the logical next step is to change our charter to reflect the completion of this transition. This transaction also presents an opportunity to combine our two banks under one charter.’

Flushing Financial Corp. has $4.4 billion in consolidated assets. In addition to Flushing Savings Bank, it operates iGObanking.com, an online banking division.

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