Unlock stock picks and a broker-level newsfeed that powers Wall Street.
In This Article:
"In a quarter marked by shifting economic conditions, Flushing Financial Corporation has demonstrated strategic progress amidst ongoing challenges. While navigating an inverted yield curve and increased economic uncertainty, we achieved important improvements in our core operations. Our GAAP and Core Net Interest Margins expanded by 12 and 24 basis points QoQ, respectively, reflecting our proactive approach to challenging market conditions. Although we recorded a non-cash goodwill impairment charge of $17.6 million in the recent quarter, this accounting adjustment has no impact on our regulatory capital ratios or liquidity position. Our liquidity remains strong with $4.0 billion in undrawn lines and resources, and our TCE/TA1 ratio stands at a solid 7.79% as of March 31, 2025. While asset quality metrics showed some softening, our strong underwriting discipline, low loan-to-value ratios, and high debt service coverage ratios position us to effectively manage credit risk going forward. As we move through 2025, we remain focused on our strategic priorities: improving profitability, maintaining credit discipline, and preserving strong liquidity and capital - foundations that will enable us to navigate the current economic environment while continuing to build long-term value for our shareholders, customers, and communities."
- John R. Buran, President and CEO
UNIONDALE, NY / ACCESS Newswire / April 29, 2025 / NIM Expansion and Average Deposit Growth. The Company reported first quarter 2025 GAAP Loss Per Share of $(0.29) and Core EPS of $0.23. The primary difference between GAAP and Core earnings was the goodwill impairment charge. Significantly, NIM expanded 12 bps on a GAAP basis QoQ to 2.51% and 24 bps on a Core basis to 2.49%. The NIM expansion was driven by the cost of funds declining 22 bps to 3.13%, partially offset by a 9 bps decline in the yield on interest earning assets to 5.51%. Average loans decreased 1.9% YoY and 1.6% QoQ, due to pricing and quality standards. Average deposits increased 6.8% YoY and 1.5% QoQ. Period end noninterest bearing deposits increased 5.9% YoY and 3.2% QoQ.
Credit Metrics Remain Manageable and Capital Stable QoQ. NPAs to assets were 71 bps compared to 57 bps the prior quarter. The increase primarily related to one previously identified multifamily relationship. Criticized and classified loans totaled 133 bps of gross loans compared to 107 bps in the prior quarter. The increase primarily relates to one office credit, which lost its primary tenant. Net charge-offs to average loans were 27 bps in 1Q25 compared to 28 bps in 4Q24 and primarily related to three commercial business relationships, which had reserves previously allocated. TCE/TA was 7.79% at March 31, 2025, compared to 7.82% at December 31, 2024.
Key Financial Metrics 2
| 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q24 | ||||||||||||||||
| GAAP: | ||||||||||||||||||||
| (Loss) Earnings per Share | $ | (0.29 | ) | $ | (1.64 | ) | $ | 0.30 | $ | 0.18 | $ | 0.12 | ||||||||
| ROAA (%) | (0.43 | ) | (2.17 | ) | 0.39 | 0.24 | 0.17 | |||||||||||||
| ROAE (%) | (5.36 | ) | (29.24 | ) | 5.30 | 3.19 | 2.20 | |||||||||||||
| NIM FTE 3 (%) | 2.51 | 2.39 | 2.10 | 2.05 | 2.06 | |||||||||||||||
| Core: | ||||||||||||||||||||
| EPS | $ | 0.23 | $ | 0.14 | $ | 0.26 | $ | 0.18 | $ | 0.14 | ||||||||||
| ROAA (%) | 0.35 | 0.19 | 0.34 | 0.25 | 0.20 | |||||||||||||||
| ROAE (%) | 4.34 | 2.54 | 4.59 | 3.27 | 2.58 | |||||||||||||||
| Core NIM FTE (%) | 2.49 | 2.25 | 2.07 | 2.03 | 2.06 | |||||||||||||||
| Credit Quality: | ||||||||||||||||||||
| NPAs/Loans & OREO (%) | 0.95 | 0.76 | 0.81 | 0.82 | 0.68 | |||||||||||||||
| ACLs/Loans (%) | 0.59 | 0.60 | 0.59 | 0.61 | 0.60 | |||||||||||||||
| ACLs/NPLs (%) | 86.54 | 120.51 | 117.75 | 120.58 | 164.13 | |||||||||||||||
| NCOs/Avg Loans (%) | 0.27 | 0.28 | 0.18 | (0.01 | ) | - | ||||||||||||||
| Balance Sheet: | ||||||||||||||||||||
| Avg Loans ($B) | $ | 6.7 | $ | 6.8 | $ | 6.7 | $ | 6.7 | $ | 6.8 | ||||||||||
| Avg Dep ($B) | $ | 7.6 | $ | 7.4 | $ | 7.5 | $ | 7.2 | $ | 7.1 | ||||||||||
| Book Value/Share | $ | 20.81 | $ | 21.53 | $ | 22.94 | $ | 22.89 | $ | 23.04 | ||||||||||
| Tangible BV/Share | $ | 20.78 | $ | 20.97 | $ | 22.29 | $ | 22.24 | $ | 22.39 | ||||||||||
| TCE/TA (%) | 7.79 | 7.82 | 7.00 | 7.12 | 7.40 |
Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
1 Tangible Common Equity ("TCE")/Total Assets ("TA"). 2 See "Reconciliation of GAAP (Loss) Earnings and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin." 3 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").
1Q25 Highlights
-
Net interest margin FTE increased 45 bps YoY and 12 bps QoQ to 2.51%; Core net interest margin FTE increased 43 bps YoY and 24 bps QoQ to 2.49%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, swap termination fees, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled 3 bps in 1Q25 compared to 5 bps in 1Q24 and 17 bps in 4Q24
-
Average total deposits increased 6.8% YoY and 1.5% QoQ to $7.6 billion; Average noninterest bearing deposits increased 2.5% YoY, but decreased 1.7% QoQ and totaled 11.3% of total average deposits compared to 11.8% in 1Q24 and 11.7% in 4Q24; Average CDs were $2.6 billion, up 7.9% YoY, but down 3.2% QoQ
-
Period end net loans decreased 1.2% YoY and 0.1% QoQ to $6.7 billion; Loan closings were $174.1 million, up 33.9% YoY, but down 22.7% QoQ; Back-to-back swap loan originations were $18.0 million compared to $58.5 million in 4Q24 and generated $0.3 million and $0.9 million of noninterest income, respectively; Loan pipeline increased 21.5% YoY and 6.3% QoQ to $211.4 million; Approximately 22% of the loan pipeline consists of back-to-back swap loans
-
NPAs totaled $64.3 million (71 bps of assets) in 1Q25 compared to $46.3 million (53 bps) a year ago and $51.3 million (57 bps) in the prior quarter; the QoQ increase primarily related to a previously identified multifamily relationship
-
Provision for credit losses was $4.3 million in 1Q25 compared to $0.6 million in 1Q24 and $6.4 million in 4Q24; Net charge-offs were $4.4 million in 1Q25 compared to $4,000 in 1Q24 and $4.7 million in 4Q24; Net charge-offs for 1Q25 were primarily related to three commercial business relationships, which had reserves previously allocated
-
The Company had goodwill on its balance sheet primarily emanating from acquisitions completed over 20 years ago; Due to the declining stock price in the first quarter, the Company experienced a triggering event as defined by US GAAP; Consequently, a valuation of the goodwill was performed resulting in a non-cash, non-tax deductible impairment of $17.6 million ($0.51 per share); After this impairment, the Company has no goodwill remaining; This impairment had no impact on regulatory capital
-
Tangible Common Equity to Tangible Assets was 7.79% at March 31, 2025, compared to 7.40% at March 31, 2024, and 7.82% at December 31, 2024; Tangible book value per share was $20.78 at March 31, 2025, compared to $22.39 a year ago and $20.97 for the prior quarter
| Areas of Focus | |
| Improve Profitability |
|
| Maintain Credit Discipline |
|
| Preserve Strong |
|
Income Statement Highlights
| YoY | QoQ | |||||||||||||||||||||||||||
| ($000s, except EPS) | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q24 | Change | Change | |||||||||||||||||||||
| Net Interest Income | $ | 52,989 | $ | 51,235 | $ | 45,603 | $ | 42,776 | $ | 42,397 | 25.0 | % | 3.4 | % | ||||||||||||||
| Provision for Credit Losses | 4,318 | 6,440 | 1,727 | 809 | 592 | 629.4 | (33.0 | ) | ||||||||||||||||||||
| Noninterest Income (Loss) | 5,074 | (71,022 | ) | 6,277 | 4,216 | 3,084 | 64.5 | (107.1 | ) | |||||||||||||||||||
| Noninterest Expense | 59,676 | 45,630 | 38,696 | 39,047 | 39,892 | 49.6 | 30.8 | |||||||||||||||||||||
| (Loss) Income Before Income Taxes | (5,931 | ) | (71,857 | ) | 11,457 | 7,136 | 4,997 | (218.7 | ) | (91.7 | ) | |||||||||||||||||
| Provision (Benefit) for Income Taxes | 3,865 | (22,612 | ) | 2,551 | 1,814 | 1,313 | 194.4 | (117.1 | ) | |||||||||||||||||||
| Net (Loss) Income | $ | (9,796 | ) | $ | (49,245 | ) | $ | 8,906 | $ | 5,322 | $ | 3,684 | (365.9 | ) | (80.1 | ) | ||||||||||||
| Diluted (Loss) Earnings per Common Share | $ | (0.29 | ) | $ | (1.64 | ) | $ | 0.30 | $ | 0.18 | $ | 0.12 | (341.7 | ) | (82.3 | ) | ||||||||||||
| Core Net Income 1 | $ | 7,931 | $ | 4,209 | $ | 7,723 | $ | 5,456 | $ | 4,312 | 83.9 | 88.4 | ||||||||||||||||
| Core EPS 1 | $ | 0.23 | $ | 0.14 | $ | 0.26 | $ | 0.18 | $ | 0.14 | 64.3 | 64.3 | ||||||||||||||||
1 See Reconciliation of GAAP (Loss) Earnings and Core Earnings
Net interest income increased YoY and QoQ.
-
Net Interest Margin FTE of 2.51% increased 45 bps YoY and 12 bps QoQ; The cost of funds declined 22 bps QoQ partially offset by a 9 bp decrease in the yield on interest earning assets
-
Prepayment penalty income, swap termination fees, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled $0.6 million (3 bps to NIM) in 1Q25 compared to $3.8 million (17 bps to NIM) in 4Q24, $2.4 million (11 bps to NIM) in 3Q24, $0.7 million (3 bps to NIM) in 2Q24, and $1.0 million (5 bps to NIM) in 1Q24
-
Excluding the items in the previous bullet, the net interest margin was 2.48% in 1Q25 compared to 2.22% in 4Q24, 1.99% in 3Q24, 2.02% in 2Q24, and 2.01% in 1Q24
The provision for credit losses increased YoY but declined QoQ.
-
Net charge-offs (recoveries) were $4.4 million (27 bps of average loans) in 1Q25 compared to $4.7 million (28 bps of average loans) in 4Q24, $3.0 million (18 bps of average loans) in 3Q24, $(92,000) ((1) bp of average loans) in 2Q24, and $4,000 (less than 1 bp of average loans) in 1Q24; Net charge-offs in 1Q25 were primarily related to three commercial business relationships, which had reserves previously allocated
Noninterest income increased YoY and QoQ.
-
Back-to-back swap loan closings of $18.0 million in 1Q25 (compared to $15.3 million in 1Q24 and $58.5 million in 4Q24) generated $0.3 million of noninterest income (compared to $0.2 million in 1Q24 and $0.9 million in 4Q24)
-
Net gains (losses) from fair value adjustments were $(0.2) million (less than $0.01 per share, net of tax) in 1Q25, $(1.1) million ($(0.03) per share, net of tax) in 4Q24, $1.0 million ($0.03 per share, net of tax) in 3Q24, $0.1 million (less than $0.01 per share, net of tax) in 2Q24, and $(0.8) million ($(0.02) per share, net of tax) in 1Q24
-
There were no gains on life insurance proceeds in 1Q25 compared to $0.3 million (about $0.01 per share) in 4Q24 and $1,000 (less than $0.01 per share) in 3Q24
-
The Company sold $36.8 million of loans held for sale during 1Q25 and incurred an additional interest rate mark of $0.2 million due to the change in the loan pool from December 31, 2024; the 4Q24 balance sheet restructuring incurred a pre-tax loss of $76.4 million from the sale of investment securities and the transfer of loans to held for sale
-
Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $5.4 million in 1Q25, up 38.3% YoY but down 9.4% QoQ
Noninterest expense increased YoY and QoQ.
-
Seasonal compensational expense was $1.6 million both in 1Q25 and 1Q24; 1Q25 seasonal compensational expenses were largely offset by expense reductions and other adjustments that are not expected to recur in 2Q25
-
The Company recorded a non-recurring, non-cash goodwill impairment charge of approximately $17.6 million ($0.51 per share) in 1Q25 and a $2.6 million non-recurring pre-payment penalty from the prepayment of FHLB advances ($0.06 per share, net of tax) in 4Q24
-
Excluding the effects of the prior bullet and other immaterial adjustments, core noninterest expenses were $42.0 million in 1Q25, up 5.4% YoY but down 1.9% QoQ
Provision (benefit) for income taxes was $3.9 million in 1Q25 compared to $1.3 million in 1Q24 and $(22.6) million in 4Q24.
-
The effective tax rate was (65.2)% in 1Q25, 31.5% in 4Q24, 22.3% in 3Q24, 25.4% in 2Q24, and 26.3% in 1Q24
-
The effective tax rate in 1Q25 was primarily related to the non-tax deductible goodwill impairment; 4Q24 was impacted by the increased benefit of permanent differences relative to pre-tax income (loss); 3Q24 includes approximately $0.5 million of discrete tax benefits
Balance Sheet, Credit Quality, and Capital Highlights
| 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1Q24 | YoY | QoQ | ||||||||||||||||
| Averages ($MM) | ||||||||||||||||||||||
| Loans | $ | 6,672 | $ | $6,780 | $ | 6,737 | $ | 6,748 | $ | 6,804 | (1.9 | )% | (1.6 | )% | ||||||||
| Total Deposits | 7,561 | 7,450 | 7,464 | 7,196 | 7,081 | 6.8 | 1.5 | |||||||||||||||
| Credit Quality ($000s) | ||||||||||||||||||||||
| Nonperforming Loans | $ | 46,263 | $ | $33,318 | $ | 34,261 | $ | 34,540 | $ | 24,829 | 86.3 | % | 38.9 | % | ||||||||
| Nonperforming Assets | 64,263 | 51,318 | 54,888 | 55,832 | 46,254 | 38.9 | 25.2 | |||||||||||||||
| Criticized and Classified Loans | 89,673 | 72,207 | 68,338 | 76,485 | 59,021 | 51.9 | 24.2 | |||||||||||||||
| Criticized and Classified Assets | 107,673 | 90,207 | 88,965 | 97,777 | 80,446 | 33.8 | 19.4 | |||||||||||||||
| Allowance for Credit Losses/Loans (%) | 0.59 | 0.60 | 0.59 | 0.61 | 0.60 | (1 | )bp | (1 | )bp | |||||||||||||
| Capital | ||||||||||||||||||||||
| Book Value/Share | $ | 20.81 | $ | $21.53 | $ | 22.94 | $ | 22.89 | $ | 23.04 | (9.7 | )% | (3.3 | )% | ||||||||
| Tangible Book Value/Share | 20.78 | 20.97 | 22.29 | 22.24 | 22.39 | (7.2 | ) | (0.9 | ) | |||||||||||||
| Tang. Common Equity/Tang. Assets (%) | 7.79 | 7.82 | 7.00 | 7.12 | 7.40 | 39 | bps | (3 | )bps | |||||||||||||
| Leverage Ratio (%) | 8.12 | 8.04 | 7.91 | 8.18 | 8.32 | (20 | ) | 8 | ||||||||||||||
Average loans decreased YoY and QoQ.
-
Period end net loans totaled $6.7 billion, down 1.2% YoY and 0.1% QoQ
-
Total loan closings were $174.1 million in 1Q25, $225.2 million in 4Q24, $217.1 million in 3Q24, $126.0 million in 2Q24, and $130.0 million in 1Q24; the loan pipeline was $211.4 million at March 31, 2025, up 21.5% YoY and 6.3% QoQ
-
The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of <35%
Average total deposits increased YoY and QoQ.
-
Average noninterest bearing deposits increased 2.5% YoY, but decreased 1.7% QoQ and comprised 11.3% of average total deposits in 1Q25 compared to 11.8% a year ago
-
Average CDs totaled $2.6 billion, up 7.9% YoY, but down 3.2% QoQ; approximately $601.9 million of retail CDs are due to mature at an average rate of 4.16% in 2Q25
Credit Quality: Nonperforming loans increased YoY and QoQ.
-
Nonperforming loans were 69 bps of loans in 1Q25 compared to 36 bps in 1Q24 and 49 bps in 4Q24; the NPL increase in 1Q25 primarily relates to a multifamily lending relationship
-
Criticized and classified loans were 133 bps of gross loans at 1Q25 compared to 107 bps at 4Q24, 100 bps at 3Q24, 113 bps at 2Q24, and 87 bps at 1Q24; the increase in 1Q25 primarily related to one office credit which lost its primary tenant
Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 9.7% and 7.2% YoY to $20.81 and $20.78, respectively.
-
The Company paid a dividend of $0.22 per share in 1Q25; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration date or maximum dollar limit
-
Tangible common equity to tangible assets was 7.79% at March 31, 2025, compared to 7.40% at March 31, 2024, and 7.82% at December 31, 2024
Conference Call Information
Conference Call Information:
-
John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Wednesday, April 30, 2025, at 9:30 AM (ET) to discuss the Company's first quarter results and strategy.
-
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
-
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=72gugnAx
-
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
-
Replay Access Code: 6535774
-
The conference call will be simultaneously webcast and archived
Second Quarter 2025 Earnings Release Date:
The Company plans to release Second Quarter 2025 financial results after the market close on July 24, 2025, followed by a conference call at 11:00 AM (ET) on July 25, 2025.
A detailed announcement will be issued prior to the second quarter's close confirming the date and the time of the release.
About Flushing Financial Corporation
Flushing Financial Corporation (Nasdaq:FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State-chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.
Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at FlushingBank.com. Flushing Financial Corporation's earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "goals", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-looking statements.
#FF
- Statistical Tables Follow -
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
| At or for the three months ended | |||||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||||||
| Performance Ratios (1) | |||||||||||||||||||||||||
| Return on average assets | (0.43 | )% | (2.17 | )% | 0.39 | % | 0.24 | % | 0.17 | % | |||||||||||||||
| Return on average equity | (5.36 | ) | (29.24 | ) | 5.30 | 3.19 | 2.20 | ||||||||||||||||||
| Yield on average interest-earning assets (2) | 5.51 | 5.60 | 5.63 | 5.43 | 5.32 | ||||||||||||||||||||
| Cost of average interest-bearing liabilities | 3.50 | 3.75 | 4.10 | 3.95 | 3.83 | ||||||||||||||||||||
| Cost of funds | 3.13 | 3.35 | 3.69 | 3.54 | 3.42 | ||||||||||||||||||||
| Net interest rate spread during period (2) | 2.01 | 1.85 | 1.53 | 1.48 | 1.49 | ||||||||||||||||||||
| Net interest margin (2) | 2.51 | 2.39 | 2.10 | 2.05 | 2.06 | ||||||||||||||||||||
| Noninterest expense to average assets | 2.65 | 2.01 | 1.68 | 1.77 | 1.83 | ||||||||||||||||||||
| Efficiency ratio (3) | 72.21 | 79.01 | 77.20 | 82.57 | 86.07 | ||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 1.17 | X | 1.17 | X | 1.16 | X | 1.17 | X | 1.17 | X | |||||||||||||||
| Average Balances | |||||||||||||||||||||||||
| Total loans, net | $ | 6,671,922 | $ | 6,780,268 | $ | 6,737,261 | $ | 6,748,140 | $ | 6,804,117 | |||||||||||||||
| Total interest-earning assets | 8,468,913 | 8,587,482 | 8,709,671 | 8,354,994 | 8,235,160 | ||||||||||||||||||||
| Total assets | 9,015,880 | 9,071,879 | 9,203,884 | 8,830,665 | 8,707,505 | ||||||||||||||||||||
| Total deposits | 7,560,956 | 7,449,504 | 7,463,783 | 7,195,940 | 7,081,498 | ||||||||||||||||||||
| Total interest-bearing liabilities | 7,261,100 | 7,339,707 | 7,504,517 | 7,140,068 | 7,014,927 | ||||||||||||||||||||
| Stockholders' equity | 731,592 | 673,588 | 672,762 | 667,557 | 669,185 | ||||||||||||||||||||
| Per Share Data | |||||||||||||||||||||||||
| Book value per common share (4) | $ | 20.81 | $ | 21.53 | $ | 22.94 | $ | 22.89 | $ | 23.04 | |||||||||||||||
| Tangible book value per common share (5) | $ | 20.78 | $ | 20.97 | $ | 22.29 | $ | 22.24 | $ | 22.39 | |||||||||||||||
| Stockholders' Equity | |||||||||||||||||||||||||
| Stockholders' equity | $ | 702,851 | $ | 724,539 | $ | 666,891 | $ | 665,322 | $ | 669,827 | |||||||||||||||
| Tangible stockholders' equity | 701,822 | 705,780 | 648,035 | 646,364 | 650,763 | ||||||||||||||||||||
| Consolidated Regulatory Capital Ratios | |||||||||||||||||||||||||
| Tier 1 capital | $ | 730,950 | $ | 731,958 | $ | 735,984 | $ | 733,308 | $ | 734,192 | |||||||||||||||
| Common equity Tier 1 capital | 683,670 | 685,004 | 689,902 | 686,630 | 687,458 | ||||||||||||||||||||
| Total risk-based capital | 961,704 | 962,272 | 967,242 | 965,819 | 965,796 | ||||||||||||||||||||
| Risk Weighted Assets | 6,719,291 | 6,762,048 | 6,790,253 | 6,718,568 | 6,664,496 | ||||||||||||||||||||
| Tier 1 leverage capital (well capitalized = 5%) | 8.12 | % | 8.04 | % | 7.91 | % | 8.18 | % | 8.32 | % | |||||||||||||||
| Common equity Tier 1 risk-based capital (well capitalized = 6.5%) | 10.17 | 10.13 | 10.16 | 10.22 | 10.32 | ||||||||||||||||||||
| Tier 1 risk-based capital (well capitalized = 8.0%) | 10.88 | 10.82 | 10.84 | 10.91 | 11.02 | ||||||||||||||||||||
| Total risk-based capital (well capitalized = 10.0%) | 14.31 | 14.23 | 14.24 | 14.38 | 14.49 | ||||||||||||||||||||
| Capital Ratios | |||||||||||||||||||||||||
| Average equity to average assets | 8.11 | % | 7.43 | % | 7.31 | % | 7.56 | % | 7.69 | % | |||||||||||||||
| Equity to total assets | 7.80 | 8.02 | 7.19 | 7.31 | 7.61 | ||||||||||||||||||||
| Tangible common equity to tangible assets (6) | 7.79 | 7.82 | 7.00 | 7.12 | 7.40 | ||||||||||||||||||||
| Asset Quality | |||||||||||||||||||||||||
| Nonaccrual loans | $ | 46,263 | $ | 33,318 | $ | 34,261 | $ | 34,540 | $ | 24,829 | |||||||||||||||
| Nonperforming loans | 46,263 | 33,318 | 34,261 | 34,540 | 24,829 | ||||||||||||||||||||
| Nonperforming assets | 64,263 | 51,318 | 54,888 | 55,832 | 46,254 | ||||||||||||||||||||
| Net charge-offs (recoveries) | 4,427 | 4,736 | 3,036 | (92 | ) | 4 | |||||||||||||||||||
| Asset Quality Ratios | |||||||||||||||||||||||||
| Nonperforming loans to gross loans | 0.69 | % | 0.49 | % | 0.50 | % | ... 0.51 | % | 0.36 | % | |||||||||||||||
| Nonperforming assets to total assets | 0.71 | 0.57 | 0.59 | 0.61 | 0.53 | ||||||||||||||||||||
| Allowance for credit losses to gross loans | 0.59 | 0.60 | 0.59 | 0.61 | 0.60 | ||||||||||||||||||||
| Allowance for credit losses to nonperforming assets | 62.30 | 78.24 | 73.50 | 74.60 | 88.10 | ||||||||||||||||||||
| Allowance for credit losses to nonperforming loans | 86.54 | 120.51 | 117.75 | 120.58 | 164.13 | ||||||||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.27 | 0.28 | 0.18 | (0.01 | ) | - | |||||||||||||||||||
| Full-service customer facilities | 28 | 28 | 28 | 27 | 27 | ||||||||||||||||||||
(1) Ratios are presented on an annualized basis, where appropriate.
(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.
(4) Calculated by dividing stockholders' equity by shares outstanding.
(5) Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets. See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
(6) See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (In thousands, except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||
| Interest and fees on loans | $ | 93,032 | $ | 94,111 | $ | 95,780 | $ | 92,728 | $ | 92,959 | ||||||||||
| Interest and dividends on securities: | ||||||||||||||||||||
| Interest | 21,413 | 24,111 | 24,215 | 18,209 | 12,541 | |||||||||||||||
| Dividends | 28 | 31 | 33 | 33 | 33 | |||||||||||||||
| Other interest income | 2,063 | 1,787 | 2,565 | 2,260 | 3,966 | |||||||||||||||
| Total interest and dividend income | 116,536 | 120,040 | 122,593 | 113,230 | 109,499 | |||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 57,174 | 59,728 | 66,150 | 60,893 | 57,865 | |||||||||||||||
| Other interest expense | 6,373 | 9,077 | 10,840 | 9,561 | 9,237 | |||||||||||||||
| Total interest expense | 63,547 | 68,805 | 76,990 | 70,454 | 67,102 | |||||||||||||||
| Net Interest Income | 52,989 | 51,235 | 45,603 | 42,776 | 42,397 | |||||||||||||||
| Provision for credit losses | 4,318 | 6,440 | 1,727 | 809 | 592 | |||||||||||||||
| Net Interest Income After Provision for Credit Losses | 48,671 | 44,795 | 43,876 | 41,967 | 41,805 | |||||||||||||||
| Noninterest Income (Loss) | ||||||||||||||||||||
| Banking services fee income | 1,521 | 2,180 | 1,790 | 1,583 | 1,394 | |||||||||||||||
| Net loss on sale of securities | - | (72,315 | ) | - | - | - | ||||||||||||||
| Net gain (loss) on sale of loans | 630 | (3,836 | ) | 137 | 26 | 110 | ||||||||||||||
| Net gain (loss) from fair value adjustments | (152 | ) | (1,136 | ) | 974 | 57 | (834 | ) | ||||||||||||
| Federal Home Loan Bank of New York stock dividends | 697 | 754 | 624 | 669 | 743 | |||||||||||||||
| Life insurance proceeds | - | 284 | 1 | - | - | |||||||||||||||
| Bank owned life insurance | 1,574 | 2,322 | 1,260 | 1,223 | 1,200 | |||||||||||||||
| Other income | 804 | 725 | 1,491 | 658 | 471 | |||||||||||||||
| Total noninterest income (loss) | 5,074 | (71,022 | ) | 6,277 | 4,216 | 3,084 | ||||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and employee benefits | 22,896 | 25,346 | 22,216 | 21,723 | 22,113 | |||||||||||||||
| Occupancy and equipment | 4,092 | 3,880 | 3,745 | 3,713 | 3,779 | |||||||||||||||
| Professional services | 2,885 | 2,516 | 2,752 | 2,786 | 2,792 | |||||||||||||||
| FDIC deposit insurance | 1,709 | 2,005 | 1,318 | 1,322 | 1,652 | |||||||||||||||
| Data processing | 1,868 | 1,697 | 1,681 | 1,785 | 1,727 | |||||||||||||||
| Depreciation and amortization | 1,373 | 1,412 | 1,436 | 1,425 | 1,457 | |||||||||||||||
| Other real estate owned/foreclosure expense | 345 | 276 | 135 | 125 | 145 | |||||||||||||||
| Gain on sale of other real estate owned | - | - | (174 | ) | - | - | ||||||||||||||
| Prepayment penalty on borrowings | - | 2,572 | - | - | - | |||||||||||||||
| Impairment of goodwill | 17,636 | - | - | - | - | |||||||||||||||
| Other operating expenses | 6,872 | 5,926 | 5,587 | 6,168 | 6,227 | |||||||||||||||
| Total noninterest expense | 59,676 | 45,630 | 38,696 | 39,047 | 39,892 | |||||||||||||||
| (Loss) Income Before Provision (Benefit) for Income Taxes | (5,931 | ) | (71,857 | ) | 11,457 | 7,136 | 4,997 | |||||||||||||
| Provision (Benefit) for income taxes | 3,865 | (22,612 | ) | 2,551 | 1,814 | 1,313 | ||||||||||||||
| Net (Loss) Income | $ | (9,796 | ) | $ | (49,245 | ) | $ | 8,906 | $ | 5,322 | $ | 3,684 | ||||||||
| Dividends paid and earnings allocated to participating securities | (132 | ) | (90 | ) | (126 | ) | (99 | ) | (104 | ) | ||||||||||
| (Loss) Income attributable to common stock | $ | (9,928 | ) | $ | (49,335 | ) | $ | 8,780 | $ | 5,223 | $ | 3,580 | ||||||||
| Divided by: | ||||||||||||||||||||
| Weighted average common shares outstanding and participating securities | 34,474 | 30,519 | 29,742 | 29,789 | 29,742 | |||||||||||||||
| Weighted average participating securities | (542 | ) | (414 | ) | (423 | ) | (458 | ) | (446 | ) | ||||||||||
| Total weighted average common shares outstanding | 33,932 | 30,105 | 29,319 | 29,331 | 29,296 | |||||||||||||||
| Basic (loss) earnings per common share | $ | (0.29 | ) | $ | (1.64 | ) | $ | 0.30 | $ | 0.18 | $ | 0.12 | ||||||||
| Diluted (loss) earnings per common share (1) | $ | (0.29 | ) | $ | (1.64 | ) | $ | 0.30 | $ | 0.18 | $ | 0.12 | ||||||||
| Dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||
(1) There were no common stock equivalents outstanding during the periods presented.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 271,912 | $ | 152,574 | $ | 267,643 | $ | 156,913 | $ | 210,723 | ||||||||||
| Securities held-to-maturity: | ||||||||||||||||||||
| Mortgage-backed securities | 7,831 | 7,836 | 7,841 | 7,846 | 7,850 | |||||||||||||||
| Other securities, net | 43,319 | 43,649 | 63,859 | 64,166 | 64,612 | |||||||||||||||
| Securities available for sale: | ||||||||||||||||||||
| Mortgage-backed securities | 879,566 | 911,636 | 926,731 | 869,494 | 509,527 | |||||||||||||||
| Other securities | 570,578 | 586,269 | 687,518 | 679,117 | 667,156 | |||||||||||||||
| Loans held for sale | 29,624 | 70,098 | - | - | - | |||||||||||||||
| Loans | 6,741,835 | 6,745,848 | 6,818,328 | 6,777,026 | 6,821,943 | |||||||||||||||
| Allowance for credit losses | (40,037 | ) | (40,152 | ) | (40,342 | ) | (41,648 | ) | (40,752 | ) | ||||||||||
| Net loans | 6,701,798 | 6,705,696 | 6,777,986 | 6,735,378 | 6,781,191 | |||||||||||||||
| Interest and dividends receivable | 61,510 | 62,036 | 64,369 | 62,752 | 61,449 | |||||||||||||||
| Bank premises and equipment, net | 18,181 | 17,852 | 18,544 | 19,426 | 20,102 | |||||||||||||||
| Federal Home Loan Bank of New York stock | 18,475 | 38,096 | 32,745 | 46,331 | 24,845 | |||||||||||||||
| Bank owned life insurance | 219,748 | 218,174 | 217,200 | 215,940 | 214,718 | |||||||||||||||
| Goodwill | - | 17,636 | 17,636 | 17,636 | 17,636 | |||||||||||||||
| Core deposit intangibles | 1,029 | 1,123 | 1,220 | 1,322 | 1,428 | |||||||||||||||
| Right of use asset | 43,870 | 45,800 | 44,787 | 46,636 | 37,631 | |||||||||||||||
| Other assets | 140,955 | 160,497 | 152,807 | 174,283 | 188,457 | |||||||||||||||
| Total assets | $ | 9,008,396 | $ | 9,038,972 | $ | 9,280,886 | $ | 9,097,240 | $ | 8,807,325 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Total deposits | $ | 7,718,218 | $ | 7,178,933 | $ | 7,572,395 | $ | 6,906,863 | $ | 7,253,207 | ||||||||||
| Borrowed funds | 421,542 | 916,054 | 846,123 | 1,316,565 | 671,474 | |||||||||||||||
| Operating lease liability | 44,385 | 46,443 | 45,437 | 47,485 | 38,674 | |||||||||||||||
| Other liabilities | 121,400 | 173,003 | 150,040 | 161,005 | 174,143 | |||||||||||||||
| Total liabilities | 8,305,545 | 8,314,433 | 8,613,995 | 8,431,918 | 8,137,498 | |||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Preferred stock (5,000,000 shares authorized; none issued) | - | - | - | - | - | |||||||||||||||
| Common stock ($0.01 par value; 100,000,000 shares authorized) | 387 | 387 | 341 | 341 | 341 | |||||||||||||||
| Additional paid-in capital | 324,290 | 326,671 | 261,274 | 260,585 | 260,413 | |||||||||||||||
| Treasury stock | (98,993 | ) | (101,655 | ) | (101,633 | ) | (101,633 | ) | (101,641 | ) | ||||||||||
| Retained earnings | 474,472 | 492,003 | 547,708 | 545,345 | 546,530 | |||||||||||||||
| Accumulated other comprehensive loss, net of taxes | 2,695 | 7,133 | (40,799 | ) | (39,316 | ) | (35,816 | ) | ||||||||||||
| Total stockholders' equity | 702,851 | 724,539 | 666,891 | 665,322 | 669,827 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 9,008,396 | $ | 9,038,972 | $ | 9,280,886 | $ | 9,097,240 | $ | 8,807,325 | ||||||||||
| (In thousands) | ||||||||||||||||||||
| Issued shares | 38,678 | 38,678 | 34,088 | 34,088 | 34,088 | |||||||||||||||
| Outstanding shares | 33,777 | 33,659 | 29,069 | 29,069 | 29,069 | |||||||||||||||
| Treasury shares | 4,901 | 5,019 | 5,019 | 5,019 | 5,019 | |||||||||||||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (In thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Interest-earning Assets: | ||||||||||||||||||||
| Loans held for sale | $ | 64,085 | $ | 762 | $ | - | $ | - | $ | - | ||||||||||
| Mortgage loans, net | 5,261,261 | 5,358,490 | 5,337,170 | 5,338,614 | 5,353,606 | |||||||||||||||
| Commercial Business loans, net | 1,410,661 | 1,421,778 | 1,400,091 | 1,409,526 | 1,450,511 | |||||||||||||||
| Total loans, net | 6,671,922 | 6,780,268 | 6,737,261 | 6,748,140 | 6,804,117 | |||||||||||||||
| Taxable securities: | ||||||||||||||||||||
| Mortgage-backed securities | 895,097 | 919,587 | 984,383 | 691,802 | 462,934 | |||||||||||||||
| Other securities, net | 585,219 | 652,755 | 714,161 | 663,975 | 590,204 | |||||||||||||||
| Total taxable securities | 1,480,316 | 1,572,342 | 1,698,544 | 1,355,777 | 1,053,138 | |||||||||||||||
| Tax-exempt securities: | ||||||||||||||||||||
| Other securities | 43,813 | 64,531 | 65,070 | 65,451 | 65,939 | |||||||||||||||
| Total taxable and tax-exempt securities | 1,524,129 | 1,636,873 | 1,763,614 | 1,421,228 | 1,119,077 | |||||||||||||||
| Interest-earning deposits and federal funds sold | 208,777 | 169,579 | 208,796 | 185,626 | 311,966 | |||||||||||||||
| Total interest-earning assets | 8,468,913 | 8,587,482 | 8,709,671 | 8,354,994 | 8,235,160 | |||||||||||||||
| Other assets | 546,967 | 484,397 | 494,213 | 475,671 | 472,345 | |||||||||||||||
| Total assets | $ | 9,015,880 | $ | 9,071,879 | $ | 9,203,884 | $ | 8,830,665 | $ | 8,707,505 | ||||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Savings accounts | $ | 98,224 | $ | 99,669 | $ | 102,196 | $ | 103,335 | $ | 106,212 | ||||||||||
| NOW accounts | 2,215,683 | 2,024,600 | 1,886,387 | 2,017,085 | 1,935,250 | |||||||||||||||
| Money market accounts | 1,716,358 | 1,686,614 | 1,673,499 | 1,714,085 | 1,725,714 | |||||||||||||||
| Certificate of deposit accounts | 2,596,714 | 2,681,742 | 2,884,280 | 2,443,047 | 2,406,283 | |||||||||||||||
| Total due to depositors | 6,626,979 | 6,492,625 | 6,546,362 | 6,277,552 | 6,173,459 | |||||||||||||||
| Mortgagors' escrow accounts | 78,655 | 87,120 | 71,965 | 95,532 | 73,822 | |||||||||||||||
| Total interest-bearing deposits | 6,705,634 | 6,579,745 | 6,618,327 | 6,373,084 | 6,247,281 | |||||||||||||||
| Borrowings | 555,466 | 759,962 | 886,190 | 766,984 | 767,646 | |||||||||||||||
| Total interest-bearing liabilities | 7,261,100 | 7,339,707 | 7,504,517 | 7,140,068 | 7,014,927 | |||||||||||||||
| Noninterest-bearing demand deposits | 855,322 | 869,759 | 845,456 | 822,856 | 834,217 | |||||||||||||||
| Other liabilities | 167,866 | 188,825 | 181,149 | 200,184 | 189,176 | |||||||||||||||
| Total liabilities | 8,284,288 | 8,398,291 | 8,531,122 | 8,163,108 | 8,038,320 | |||||||||||||||
| Equity | 731,592 | 673,588 | 672,762 | 667,557 | 669,185 | |||||||||||||||
| Total liabilities and equity | $ | 9,015,880 | $ | 9,071,879 | $ | 9,203,884 | $ | 8,830,665 | $ | 8,707,505 | ||||||||||
| Net interest-earning assets | $ | 1,207,813 | $ | 1,247,775 | $ | 1,205,154 | $ | 1,214,926 | $ | 1,220,233 | ||||||||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST INCOME AND NET INTEREST MARGIN
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| (Dollars in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| Interest Income: | ||||||||||||||||||||
| Loans held for sale | $ | 664 | $ | 7 | $ | - | $ | - | $ | - | ||||||||||
| Mortgage loans, net | 72,391 | 73,252 | 74,645 | 71,968 | 71,572 | |||||||||||||||
| Commercial Business loans, net | 19,977 | 20,852 | 21,135 | 20,760 | 21,387 | |||||||||||||||
| Total loans, net | 92,368 | 94,104 | 95,780 | 92,728 | 92,959 | |||||||||||||||
| Taxable securities: | ||||||||||||||||||||
| Mortgage-backed securities | 12,528 | 13,884 | 12,443 | 7,462 | 3,696 | |||||||||||||||
| Other securities | 8,553 | 9,887 | 11,431 | 10,408 | 8,504 | |||||||||||||||
| Total taxable securities | 21,081 | 23,771 | 23,874 | 17,870 | 12,200 | |||||||||||||||
| Tax-exempt securities: | ||||||||||||||||||||
| Other securities | 456 | 469 | 474 | 470 | 474 | |||||||||||||||
| Total taxable and tax-exempt securities | 21,537 | 24,240 | 24,348 | 18,340 | 12,674 | |||||||||||||||
| Interest-earning deposits and federal funds sold | 2,063 | 1,787 | 2,565 | 2,260 | 3,966 | |||||||||||||||
| Total interest-earning assets | 116,632 | 120,138 | 122,693 | 113,328 | 109,599 | |||||||||||||||
| Interest Expense: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Savings accounts | $ | 110 | $ | 113 | $ | 122 | $ | 115 | $ | 122 | ||||||||||
| NOW accounts | 18,915 | 18,390 | 18,795 | 20,007 | 18,491 | |||||||||||||||
| Money market accounts | 15,372 | 15,909 | 17,485 | 17,326 | 17,272 | |||||||||||||||
| Certificate of deposit accounts | 22,710 | 25,258 | 29,676 | 23,383 | 21,918 | |||||||||||||||
| Total due to depositors | 57,107 | 59,670 | 66,078 | 60,831 | 57,803 | |||||||||||||||
| Mortgagors' escrow accounts | 67 | 58 | 72 | 62 | 62 | |||||||||||||||
| Total interest-bearing deposits | 57,174 | 59,728 | 66,150 | 60,893 | 57,865 | |||||||||||||||
| Borrowings | 6,373 | 9,077 | 10,840 | 9,561 | 9,237 | |||||||||||||||
| Total interest-bearing liabilities | 63,547 | 68,805 | 76,990 | 70,454 | 67,102 | |||||||||||||||
| Net interest income- tax equivalent | $ | 53,085 | $ | 51,333 | $ | 45,703 | $ | 42,874 | $ | 42,497 | ||||||||||
| Included in net interest income above: | ||||||||||||||||||||
| Episodic items (1) | $ | 294 | $ | 648 | $ | 1,647 | $ | 369 | $ | 928 | ||||||||||
| Net gains/(losses) from fair value adjustments on hedges included in net interest income | 56 | 2,911 | 554 | 177 | (187 | ) | ||||||||||||||
| Purchase accounting adjustments | 252 | 191 | 155 | 182 | 271 | |||||||||||||||
| Interest-earning Assets Yields: | ||||||||||||||||||||
| Loans held for sale | 4.14 | % | 3.67 | % | - | % | - | % | - | % | ||||||||||
| Mortgage loans, net | 5.50 | 5.47 | 5.59 | 5.39 | 5.35 | |||||||||||||||
| Commercial Business loans, net | 5.66 | 5.87 | 6.04 | 5.89 | 5.90 | |||||||||||||||
| Total loans, net | 5.54 | 5.55 | 5.69 | 5.50 | 5.46 | |||||||||||||||
| Taxable securities: | ||||||||||||||||||||
| Mortgage-backed securities | 5.60 | 6.04 | 5.06 | 4.31 | 3.19 | |||||||||||||||
| Other securities | 5.85 | 6.06 | 6.40 | 6.27 | 5.76 | |||||||||||||||
| Total taxable securities | 5.70 | 6.05 | 5.62 | 5.27 | 4.63 | |||||||||||||||
| Tax-exempt securities: (2) | ||||||||||||||||||||
| Other securities | 4.16 | 2.91 | 2.91 | 2.87 | 2.88 | |||||||||||||||
| Total taxable and tax-exempt securities | 5.65 | 5.92 | 5.52 | 5.16 | 4.53 | |||||||||||||||
| Interest-earning deposits and federal funds sold | 3.95 | 4.22 | 4.91 | 4.87 | 5.09 | |||||||||||||||
| Total interest-earning assets (1) | 5.51 | % | 5.60 | % | 5.63 | % | 5.43 | % | 5.32 | % | ||||||||||
| Interest-bearing Liabilities Yields: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Savings accounts | 0.45 | % | 0.45 | % | 0.48 | % | 0.45 | % | 0.46 | % | ||||||||||
| NOW accounts | 3.41 | 3.63 | 3.99 | 3.97 | 3.82 | |||||||||||||||
| Money market accounts | 3.58 | 3.77 | 4.18 | 4.04 | 4.00 | |||||||||||||||
| Certificate of deposit accounts | 3.50 | 3.77 | 4.12 | 3.83 | 3.64 | |||||||||||||||
| Total due to depositors | 3.45 | 3.68 | 4.04 | 3.88 | 3.75 | |||||||||||||||
| Mortgagors' escrow accounts | 0.34 | 0.27 | 0.40 | 0.26 | 0.34 | |||||||||||||||
| Total interest-bearing deposits | 3.41 | 3.63 | 4.00 | 3.82 | 3.70 | |||||||||||||||
| Borrowings | 4.59 | 4.78 | 4.89 | 4.99 | 4.81 | |||||||||||||||
| Total interest-bearing liabilities | 3.50 | % | 3.75 | % | 4.10 | % | 3.95 | % | 3.83 | % | ||||||||||
| Net interest rate spread (tax equivalent) (1) | 2.01 | % | 1.85 | % | 1.53 | % | 1.48 | % | 1.49 | % | ||||||||||
| Net interest margin (tax equivalent) (1) | 2.51 | % | 2.39 | % | 2.10 | % | 2.05 | % | 2.06 | % | ||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.17 | X | 1.17 | % | 1.16 | X | 1.17 | X | 1.17 | X | ||||||||||
(1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.
(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT and LOAN COMPOSITION
(Unaudited)
Deposit Composition
| March 31, | December 31, | September 30, | June 30, | March 31, |
| 1Q25 vs. | ||||||||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | % Change | % Change | |||||||||||||||||||||
| Noninterest bearing | $ | 863,714 | $ | 836,545 | $ | 860,930 | $ | 825,327 | $ | 815,937 | 3.2 | % | 5.9 | % | ||||||||||||||
| Interest bearing: | ||||||||||||||||||||||||||||
| Certificate of deposit accounts | 2,592,026 | 2,650,164 | 2,875,486 | 2,435,894 | 2,529,095 | (2.2 | ) | 2.5 | ||||||||||||||||||||
| Savings accounts | 97,624 | 98,964 | 100,279 | 103,296 | 105,147 | (1.4 | ) | (7.2 | ) | |||||||||||||||||||
| Money market accounts | 1,681,608 | 1,686,109 | 1,659,027 | 1,710,376 | 1,717,298 | (0.3 | ) | (2.1 | ) | |||||||||||||||||||
| NOW accounts | 2,393,482 | 1,854,069 | 2,003,301 | 1,774,268 | 2,003,649 | 29.1 | 19.5 | |||||||||||||||||||||
| Total interest-bearing deposits | 6,764,740 | 6,289,306 | 6,638,093 | 6,023,834 | 6,355,189 | 7.6 | 6.4 | |||||||||||||||||||||
| Total due to depositors | 7,628,454 | 7,125,851 | 7,499,023 | 6,849,161 | 7,171,126 | 7.1 | 6.4 | |||||||||||||||||||||
| Mortgagors' escrow deposits | 89,764 | 53,082 | 73,372 | 57,702 | 82,081 | 69.1 | 9.4 | |||||||||||||||||||||
| Total deposits | $ | 7,718,218 | $ | 7,178,933 | $ | 7,572,395 | $ | 6,906,863 | $ | 7,253,207 | 7.5 | % | 6.4 | % | ||||||||||||||
Loan Composition
| March 31, | December 31, | September 30, | June 30, | March 31, | 1Q25 vs. | 1Q25 vs. | |||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | % Change | % Change | ||||||||||||||
| Multifamily residential | $ | 2,531,628 | $ | 2,527,222 | $ | 2,638,863 | $ | 2,631,751 | $ | 2,622,737 | 0.2 | % | (3.5) | % | |||||||
| Commercial real estate | 1,953,710 | 1,973,124 | 1,929,093 | 1,894,509 | 1,925,312 | (1.0) | 1.5 | ||||||||||||||
| One-to-four family ― mixed use property | 501,562 | 511,222 | 515,511 | 518,510 | 516,198 | (1.9) | (2.8) | ||||||||||||||
| One-to-four family ― residential | 269,492 | 244,282 | 252,293 | 261,716 | 267,156 | 10.3 | 0.9 | ||||||||||||||
| Construction | 63,474 | 60,399 | 63,674 | 65,161 | 60,568 | 5.1 | 4.8 | ||||||||||||||
| Mortgage loans | 5,319,866 | 5,316,249 | 5,399,434 | 5,371,647 | 5,391,971 | 0.1 | (1.3) | ||||||||||||||
| Small Business Administration | 14,713 | 19,925 | 19,368 | 13,957 | 16,244 | (26.2) | (9.4) | ||||||||||||||
| Commercial business and other | 1,396,597 | 1,401,602 | 1,387,965 | 1,389,711 | 1,411,725 | (0.4) | (1.1) | ||||||||||||||
| Commercial Business loans | 1,411,310 | 1,421,527 | 1,407,333 | 1,403,668 | 1,427,969 | (0.7) | (1.2) | ||||||||||||||
| Gross loans | 6,731,176 | 6,737,776 | 6,806,767 | 6,775,315 | 6,819,940 | (0.1) | (1.3) | ||||||||||||||
| Net unamortized (premiums) and unearned loan (cost) fees (1) | 10,659 | 8,072 | 11,561 | 1,711 | 2,003 | 32.0 | 432.2 | ||||||||||||||
| Allowance for credit losses | (40,037) | (40,152) | (40,342) | (41,648) | (40,752) | (0.3) | (1.8) | ||||||||||||||
| Net loans | $ | 6,701,798 | $ | 6,705,696 | $ | 6,777,986 | $ | 6,735,378 | $ | 6,781,191 | (0.1) | % | (1.2) | % | |||||||
(1) Includes $2.6 million, $2.8 million, $3.1 million, $3.4 million, and $3.6 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOAN CLOSINGS and RATES
(Unaudited)
Loan Closings
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (In thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Multifamily residential | $ | 21,183 | $ | 25,232 | $ | 50,528 | $ | 27,966 | $ | 11,805 | ||||||||||
| Commercial real estate | 22,916 | 75,285 | 56,713 | 20,573 | 10,040 | |||||||||||||||
| One-to-four family - mixed use property | 1,842 | 6,622 | 5,709 | 3,980 | 750 | |||||||||||||||
| One-to-four family - residential | 35,206 | 739 | 1,705 | 689 | 52,539 | |||||||||||||||
| Construction | 3,275 | 9,338 | 5,063 | 4,594 | 1,895 | |||||||||||||||
| Mortgage loans | 84,422 | 117,216 | 119,718 | 57,802 | 77,029 | |||||||||||||||
| Small Business Administration | 1,250 | 1,368 | 5,930 | - | - | |||||||||||||||
| Commercial business and other | 88,404 | 106,580 | 91,447 | 68,162 | 52,955 | |||||||||||||||
| Commercial Business loans | 89,654 | 107,948 | 97,377 | 68,162 | 52,955 | |||||||||||||||
| Total Closings | $ | 174,076 | $ | 225,164 | $ | 217,095 | $ | 125,964 | $ | 129,984 | ||||||||||
Weighted Average Rate on Loan Closings
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| Loan type | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Mortgage loans | 6.68 | % | 7.12 | % | 7.31 | % | 7.58 | % | 6.36 | % | ||||||||||
| Commercial Business loans | 7.28 | 7.45 | 7.75 | 7.94 | 8.29 | |||||||||||||||
| Total loans | 6.99 | % | 7.28 | % | 7.51 | % | 7.77 | % | 7.13 | % | ||||||||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)
Allowance for Credit Losses
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Allowance for credit losses - loans | ||||||||||||||||||||
| Beginning balances | $ | 40,152 | $ | 40,342 | $ | 41,648 | $ | 40,752 | $ | 40,161 | ||||||||||
| Net loan charge-off (recoveries): | ||||||||||||||||||||
| Multifamily residential | 4 | (1 | ) | - | (1 | ) | - | |||||||||||||
| Commercial real estate | - | 421 | - | - | - | |||||||||||||||
| One-to-four family - mixed-use property | - | - | - | (2 | ) | - | ||||||||||||||
| One-to-four family - residential | - | (41 | ) | (58 | ) | (2 | ) | 13 | ||||||||||||
| Small Business Administration | (40 | ) | (4 | ) | (1 | ) | (91 | ) | (5 | ) | ||||||||||
| Commercial business and other | 4,463 | 4,361 | 3,095 | 4 | (4 | ) | ||||||||||||||
| Total net loan charge-offs (recoveries) | 4,427 | 4,736 | 3,036 | (92 | ) | 4 | ||||||||||||||
| Provision (benefit) for loan losses | 4,312 | 4,546 | 1,730 | 804 | 595 | |||||||||||||||
| Ending balance | $ | 40,037 | $ | 40,152 | $ | 40,342 | $ | 41,648 | $ | 40,752 | ||||||||||
| Gross charge-offs | $ | 4,471 | $ | 4,790 | $ | 3,110 | $ | 11 | $ | 58 | ||||||||||
| Gross recoveries | 44 | 54 | 74 | 103 | 54 | |||||||||||||||
| Allowance for credit losses - loans to gross loans | 0.59 | % | 0.60 | % | 0.59 | % | 0.61 | % | 0.60 | % | ||||||||||
| Net loan charge-offs (recoveries) to average loans | 0.27 | 0.28 | 0.18 | (0.01 | ) | - | ||||||||||||||
Nonperforming Assets
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Nonaccrual Loans: | ||||||||||||||||||||
| Multifamily residential | 25,952 | 11,031 | 9,478 | 13,774 | 4,669 | |||||||||||||||
| Commercial real estate | 6,703 | 6,283 | 6,705 | - | - | |||||||||||||||
| One-to-four family - mixed-use property | 426 | 116 | 369 | 909 | 911 | |||||||||||||||
| One-to-four family - residential | 1,225 | 1,428 | 1,493 | 3,633 | 3,768 | |||||||||||||||
| Small Business Administration | 2,445 | 2,445 | 2,445 | 2,552 | 2,552 | |||||||||||||||
| Commercial business and other | 9,512 | 12,015 | 13,771 | 13,672 | 12,929 | |||||||||||||||
| Total Nonaccrual loans | 46,263 | 33,318 | 34,261 | 34,540 | 24,829 | |||||||||||||||
| Total Nonperforming Loans (NPLs) | 46,263 | 33,318 | 34,261 | 34,540 | 24,829 | |||||||||||||||
| Other Nonperforming Assets: | ||||||||||||||||||||
| Real estate acquired through foreclosure | - | - | - | 665 | 665 | |||||||||||||||
| Total Other nonperforming assets | - | - | - | 665 | 665 | |||||||||||||||
| Total Nonaccrual HTM Securities | 18,000 | 18,000 | 20,627 | 20,627 | 20,760 | |||||||||||||||
| Total Nonperforming Assets | $ | 64,263 | $ | 51,318 | $ | 54,888 | $ | 55,832 | $ | 46,254 | ||||||||||
| Nonperforming Assets to Total Assets | 0.71 | % | 0.57 | % | 0.59 | % | 0.61 | % | 0.53 | % | ||||||||||
| Allowance for Credit Losses to NPLs | 86.5 | % | 120.5 | % | 117.7 | % | 120.6 | % | 164.1 | % | ||||||||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP (LOSS) EARNINGS and CORE EARNINGS
Non-cash Fair Value Adjustments to GAAP (Loss) Earnings
The variance in GAAP (loss) and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to borrowings carried at fair value under the fair value option.
Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense and Tangible Book Value per common share are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears below in tabular form. The Company believes that these measures are useful for both investors and management to understand the effects of certain interest and noninterest items and provide an alternative view of the Company's performance over time and in comparison, to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as this measure is commonly used by financial institutions, regulators, and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison, to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP (LOSS) EARNINGS and CORE EARNINGS
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| (Dollars in thousands, | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| GAAP (loss) income before income taxes | $ | (5,931 | ) | $ | (71,857 | ) | $ | 11,457 | $ | 7,136 | $ | 4,997 | ||||||||
| Net (gain) loss from fair value adjustments (Noninterest income (loss)) | 152 | 1,136 | (974 | ) | (57 | ) | 834 | |||||||||||||
| Net loss on sale of securities (Noninterest income (loss)) | - | 72,315 | - | - | - | |||||||||||||||
| Life insurance proceeds (Noninterest income (loss)) | - | (284 | ) | (1 | ) | - | - | |||||||||||||
| Valuation allowance on loans transferred to held for sale (Noninterest income (loss)) | 194 | 3,836 | - | - | - | |||||||||||||||
| Net (gain) loss from fair value adjustments on hedges (Net interest income) | (56 | ) | (2,911 | ) | (554 | ) | (177 | ) | 187 | |||||||||||
| Prepayment penalty on borrowings (Noninterest expense) | - | 2,572 | - | - | - | |||||||||||||||
| Net amortization of purchase accounting adjustments and intangibles (Various) | (167 | ) | (101 | ) | (62 | ) | (85 | ) | (169 | ) | ||||||||||
| Impairment of goodwill (Noninterest expense) | 17,636 | - | - | - | - | |||||||||||||||
| Miscellaneous expense (Professional services) | (1 | ) | 218 | 10 | 494 | - | ||||||||||||||
| Core income before taxes | 11,827 | 4,924 | 9,876 | 7,311 | 5,849 | |||||||||||||||
| Provision for core income taxes | 3,896 | 715 | 2,153 | 1,855 | 1,537 | |||||||||||||||
| Core net income | $ | 7,931 | $ | 4,209 | $ | 7,723 | $ | 5,456 | $ | 4,312 | ||||||||||
| GAAP diluted (loss)earnings per common share | $ | (0.29 | ) | $ | (1.64 | ) | $ | 0.30 | $ | 0.18 | $ | 0.12 | ||||||||
| Net (gain) loss from fair value adjustments, net of tax | - | 0.03 | (0.03 | ) | (0.01 | ) | 0.02 | |||||||||||||
| Net loss on sale of securities, net of tax | - | 1.65 | - | - | - | |||||||||||||||
| Life insurance proceeds | - | (0.01 | ) | - | - | - | ||||||||||||||
| Valuation allowance on loans transferred to held for sale, net of tax | - | 0.09 | - | - | - | |||||||||||||||
| Net (gain) loss from fair value adjustments on hedges, net of tax | - | (0.06 | ) | (0.01 | ) | - | - | |||||||||||||
| Prepayment penalty on borrowings, net of tax | - | 0.06 | - | - | - | |||||||||||||||
| Net amortization of purchase accounting adjustments, net of tax | - | - | - | - | - | |||||||||||||||
| Impairment of goodwill | 0.51 | - | - | - | - | |||||||||||||||
| Miscellaneous expense, net of tax | - | - | - | 0.01 | - | |||||||||||||||
| Loss not attributable to participating securities | - | 0.03 | - | - | - | |||||||||||||||
| Core diluted earnings per common share (1) | $ | 0.23 | $ | 0.14 | $ | 0.26 | $ | 0.18 | $ | 0.14 | ||||||||||
| Core net income, as calculated above | $ | 7,931 | $ | 4,209 | $ | 7,723 | $ | 5,456 | $ | 4,312 | ||||||||||
| Average assets | 9,015,880 | 9,060,481 | 9,203,884 | 8,830,665 | 8,707,505 | |||||||||||||||
| Average equity | 731,592 | 662,190 | 672,762 | 667,557 | 669,185 | |||||||||||||||
| Core return on average assets (2) | 0.35 | % | 0.19 | % | 0.34 | % | 0.25 | % | 0.20 | % | ||||||||||
| Core return on average equity (2) | 4.34 | % | 2.54 | % | 4.59 | % | 3.27 | % | 2.58 | % | ||||||||||
(1) Core diluted earnings per common share may not foot due to rounding.
(2) Ratios are calculated on an annualized basis.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE and PRE-PROVISION
PRE-TAX NET REVENUE
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| GAAP Net interest income | $ | 52,989 | $ | 51,235 | $ | 45,603 | $ | 42,776 | $ | 42,397 | ||||||||||
| Net (gain) loss from fair value adjustments on hedges | (56 | ) | (2,911 | ) | (554 | ) | (177 | ) | 187 | |||||||||||
| Net amortization of purchase accounting adjustments | (252 | ) | (191 | ) | (155 | ) | (182 | ) | (271 | ) | ||||||||||
| Core Net interest income | $ | 52,681 | $ | 48,133 | $ | 44,894 | $ | 42,417 | $ | 42,313 | ||||||||||
| GAAP Noninterest income (loss) | $ | 5,074 | $ | (71,022 | ) | $ | 6,277 | $ | 4,216 | $ | 3,084 | |||||||||
| Net (gain) loss from fair value adjustments | 152 | 1,136 | (974 | ) | (57 | ) | 834 | |||||||||||||
| Net loss on sale of securities | - | 72,315 | - | - | - | |||||||||||||||
| Valuation allowance on loans transferred to held for sale | 194 | 3,836 | - | - | - | |||||||||||||||
| Life insurance proceeds | - | (284 | ) | (1 | ) | - | - | |||||||||||||
| Core Noninterest income | $ | 5,420 | $ | 5,981 | $ | 5,302 | $ | 4,159 | $ | 3,918 | ||||||||||
| GAAP Noninterest expense | $ | 59,676 | $ | 45,630 | $ | 38,696 | $ | 39,047 | $ | 39,892 | ||||||||||
| Prepayment penalty on borrowings | - | (2,572 | ) | - | - | - | ||||||||||||||
| Net amortization of purchase accounting adjustments | (85 | ) | (90 | ) | (93 | ) | (97 | ) | (102 | ) | ||||||||||
| Impairment of goodwill | (17,636 | ) | - | - | - | - | ||||||||||||||
| Miscellaneous expense | 1 | (218 | ) | (10 | ) | (494 | ) | - | ||||||||||||
| Core Noninterest expense | $ | 41,956 | $ | 42,750 | $ | 38,593 | $ | 38,456 | $ | 39,790 | ||||||||||
| Net interest income | $ | 52,989 | $ | 51,235 | $ | 45,603 | $ | 42,776 | $ | 42,397 | ||||||||||
| Noninterest income (loss) | 5,074 | (71,022 | ) | 6,277 | 4,216 | 3,084 | ||||||||||||||
| Noninterest expense | (59,676 | ) | (45,630 | ) | (38,696 | ) | (39,047 | ) | (39,892 | ) | ||||||||||
| Pre-provision pre-tax net (loss) revenue | $ | (1,613 | ) | $ | (65,417 | ) | $ | 13,184 | $ | 7,945 | $ | 5,589 | ||||||||
| Core: | ||||||||||||||||||||
| Net interest income | $ | 52,681 | $ | 48,133 | $ | 44,894 | $ | 42,417 | $ | 42,313 | ||||||||||
| Noninterest income | 5,420 | 5,981 | 5,302 | 4,159 | 3,918 | |||||||||||||||
| Noninterest expense | (41,956 | ) | (42,750 | ) | (38,593 | ) | (38,456 | ) | (39,790 | ) | ||||||||||
| Pre-provision pre-tax net revenue | $ | 16,145 | $ | 11,364 | $ | 11,603 | $ | 8,120 | $ | 6,441 | ||||||||||
| Efficiency Ratio | 72.2 | % | 79.0 | % | 77.2 | % | 82.6 | % | 86.1 | % | ||||||||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN
to CORE NET INTEREST INCOME
(Unaudited)
| For the three months ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| GAAP net interest income | $ | 52,989 | $ | 51,235 | $ | 45,603 | $ | 42,776 | $ | 42,397 | ||||||||||
| Net (gain) loss from fair value adjustments on hedges | (56 | ) | (2,911 | ) | (554 | ) | (177 | ) | 187 | |||||||||||
| Net amortization of purchase accounting adjustments | (252 | ) | (191 | ) | (155 | ) | (182 | ) | (271 | ) | ||||||||||
| Tax equivalent adjustment | 96 | 98 | 100 | 98 | 100 | |||||||||||||||
| Core net interest income FTE | $ | 52,777 | $ | 48,231 | $ | 44,994 | $ | 42,515 | $ | 42,413 | ||||||||||
| Episodic items (1) | (294 | ) | (648 | ) | (1,647 | ) | (369 | ) | (928 | ) | ||||||||||
| Net interest income FTE excluding episodic items | $ | 52,483 | $ | 47,583 | $ | 43,347 | $ | 42,146 | $ | 41,485 | ||||||||||
| Total average interest-earning assets (2) | $ | 8,471,609 | $ | 8,590,022 | $ | 8,712,443 | $ | 8,358,006 | $ | 8,238,395 | ||||||||||
| Core net interest margin FTE | 2.49 | % | 2.25 | % | 2.07 | % | 2.03 | % | 2.06 | % | ||||||||||
| Net interest margin FTE excluding episodic items | 2.48 | % | 2.22 | % | 1.99 | % | 2.02 | % | 2.01 | % | ||||||||||
| GAAP interest income on total loans, net (3) | $ | 92,368 | $ | 94,104 | $ | 95,780 | $ | 92,728 | $ | 92,959 | ||||||||||
| Net (gain) loss from fair value adjustments on hedges - loans | (56 | ) | 29 | (364 | ) | (137 | ) | 123 | ||||||||||||
| Net amortization of purchase accounting adjustments | (252 | ) | (216 | ) | (168 | ) | (198 | ) | (295 | ) | ||||||||||
| Core interest income on total loans, net | $ | 92,060 | $ | 93,917 | $ | 95,248 | $ | 92,393 | $ | 92,787 | ||||||||||
| Average total loans, net (2) | $ | 6,674,665 | $ | 6,783,264 | $ | 6,740,579 | $ | 6,751,715 | $ | 6,807,944 | ||||||||||
| Core yield on total loans | 5.52 | % | 5.54 | % | 5.65 | % | 5.47 | % | 5.45 | % | ||||||||||
(1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.
(2) Excludes purchase accounting average balances for all periods presented.
(3) Excludes interest income from loans held for sale.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS'
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Total Equity | $ | 702,851 | $ | 724,539 | $ | 666,891 | $ | 665,322 | $ | 669,827 | ||||||||||
| Less: | ||||||||||||||||||||
| Goodwill | - | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||
| Core deposit intangibles | (1,029 | ) | (1,123 | ) | (1,220 | ) | (1,322 | ) | (1,428 | ) | ||||||||||
| Tangible Stockholders' Common Equity | $ | 701,822 | $ | 705,780 | $ | 648,035 | $ | 646,364 | $ | 650,763 | ||||||||||
| Total Assets | $ | 9,008,396 | $ | 9,038,972 | $ | 9,280,886 | $ | 9,097,240 | $ | 8,807,325 | ||||||||||
| Less: | ||||||||||||||||||||
| Goodwill | - | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||
| Core deposit intangibles | (1,029 | ) | (1,123 | ) | (1,220 | ) | (1,322 | ) | (1,428 | ) | ||||||||||
| Tangible Assets | $ | 9,007,367 | $ | 9,020,213 | $ | 9,262,030 | $ | 9,078,282 | $ | 8,788,261 | ||||||||||
| Tangible Stockholders' Common Equity to Tangible Assets | 7.79 | % | 7.82 | % | 7.00 | % | 7.12 | % | 7.40 | % | ||||||||||
SOURCE: Flushing Financial Corporation
View the original press release on ACCESS Newswire