Flushing Financial (FFIC) Q1 2025 Earnings Call April 30, 2025 09:30 AM ET Speaker0 Welcome to Flushing Financial Corporation's First Quarter twenty twenty five Operating Results Conference Call. Hosting the call today are John Buren, President and Chief Executive Officer and Susan Cullen, Senior Executive Vice President, Chief Financial Officer and Treasurer. Today's call is being recorded. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questio ...

Group 1 - Flushing Financial reported revenue of $58.06 million for Q1 2025, a year-over-year increase of 27.7% [1] - The EPS for the same period was $0.23, compared to $0.14 a year ago, indicating a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $55.04 million by 5.49%, and the EPS also surpassed the consensus estimate of $0.22 by 4.55% [1] Group 2 - Key metrics for Flushing Financial include an efficiency ratio of 72.2%, which is better than the average estimate of 77.4% [4] - The net interest margin was reported at 2.5%, slightly above the average estimate of 2.4% [4] - Average interest-earning assets were $8.47 billion, close to the average estimate of $8.51 billion [4] Group 3 - Total non-interest income was reported at $5.07 million, exceeding the average estimate of $4.69 million [4] - Net interest income was $52.99 million, higher than the average estimate of $50.35 million [4] - The stock of Flushing Financial has returned -2.8% over the past month, compared to the S&P 500 composite's -0.8% change [3]

分组1 - Flushing Financial reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and up from $0.14 per share a year ago, representing an earnings surprise of 4.55% [1] - The company posted revenues of $58.06 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.49%, compared to year-ago revenues of $45.48 million [2] - Over the last four quarters, Flushing Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed, losing about 13.5% since the beginning of the year, while the S&P 500 declined by 6% [3] - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $58.4 million, and for the current fiscal year, it is $1.20 on revenues of $232.05 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the top 17% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Flushing Financial Corporation Reports 1Q25 Results; Net Interest Income and Margin Expand While Goodwill Impairment Causes Loss "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, reflec ...

Financial Performance - Net income for 2024 was a loss of $31,333 thousand, compared to a profit of $28,664 thousand in 2023[429]. - Basic earnings per common share for 2024 was $(1.05), down from $0.96 in 2023[429]. - Comprehensive net income for 2024 was $14,451 thousand, compared to $26,501 thousand in 2023[430]. - The net income reported for 2024 was $(31,333) thousand, compared to $28,664 thousand in 2023 and $76,945 thousand in 2022[504]. - The total provision for income taxes for 2024 was $(16.9) million, compared to $11.2 million in 2023, reflecting a significant decrease in tax provision[571]. Assets and Liabilities - Total assets increased to $9,038,972 thousand in 2024 from $8,537,236 thousand in 2023, representing an increase of 5.9%[427]. - Total liabilities increased to $8,314,433 thousand in 2024 from $7,867,399 thousand in 2023, an increase of 5.7%[427]. - The total balance of stockholders' equity at December 31, 2024, was $724,539 thousand, up from $677,157 thousand at the end of 2023[432]. - Cash and cash equivalents at December 31, 2024, totaled $125.2 million, down from $145.3 million at December 31, 2023, with restricted cash at $43.2 million and $47.9 million respectively[443]. Loans and Credit Losses - Net loans held for investment decreased to $6,705,696 thousand in 2024 from $6,866,789 thousand in 2023, a decline of 2.3%[427]. - The allowance for credit losses was $40,152 thousand in 2024, slightly down from $40,161 thousand in 2023[427]. - The provision for credit losses was $9,568 thousand in 2024, slightly down from $10,518 thousand in 2023[434]. - The total allowance for credit losses at December 31, 2024, was $40,152,000, compared to $40,161,000 at the end of 2023, showing a slight decrease[524]. - The company has implemented loan modifications that may include interest rate reductions and term extensions to assist borrowers in financial distress[512]. Income and Expenses - Total interest and dividend income increased to $465,362 thousand in 2024, a growth of 15.9% compared to $401,477 thousand in 2023[429]. - Non-interest expense rose to $163,265 thousand in 2024, up from $151,389 thousand in 2023, reflecting an increase of 7.4%[429]. - Interest paid increased significantly to $278,702 thousand in 2024 from $214,610 thousand in 2023[436]. - Total interest expense on deposits for 2024 was $244.6 million, compared to $188.7 million in 2023, reflecting a rise of 29.6%[559]. Stock and Equity - The company repurchased treasury stock worth $11,473 thousand in 2023 and did not repurchase any in 2024[436]. - The Company issued 4,590,164 shares in a common stock offering, raising $65,540 thousand[432]. - The total amount of dividends that the Holding Company can declare is limited to its net profits for the preceding year, with no retained earnings available for distribution as of December 31, 2024[610]. Deposits and Borrowings - Total deposits increased to $7,178.9 million in 2024 from $6,815.3 million in 2023, representing a growth of 5.35%[555]. - Total borrowings amounted to $916.1 million at December 31, 2024, with a weighted average rate of 4.59%, compared to $841.3 million at a rate of 5.06% in 2023[561]. - Government deposits reached $1,775.5 million at December 31, 2024, up from $1,587.9 million in 2023, indicating an increase of 11.8%[558]. Capital and Regulatory Compliance - The Bank's capital conservation buffer (CCB) was 5.11% as of December 31, 2024, up from 4.81% in 2023, indicating strong capital levels[617]. - The Common Equity Tier I risk-based capital level for the Bank was $847,588 thousand at 12.51%, up from $825,104 thousand at 12.22% in the previous year[618]. - The Bank continues to exceed all capital adequacy levels and is categorized as "well-capitalized" under current regulations[617]. Employee Compensation and Benefits - The company recorded stock-based compensation costs of $2.2 million for the year ended December 31, 2024, down from $5.3 million in 2023 and $6.2 million in 2022[578]. - The projected benefit obligation for the employee retirement plan decreased to $15.8 million in 2024 from $17.0 million in 2023[589]. - The market value of plan assets for the employee retirement plan decreased to $17.9 million in 2024 from $19.2 million in 2023[589]. Securities and Investments - The total fair value of available for sale securities was $772.4 million with unrealized losses of $9.3 million as of December 31, 2024[547]. - The total securities available for sale amounted to $1,506,798 thousand, with a fair value of $1,497,905 thousand as of December 31, 2024[538]. - The company sold available for sale securities with carrying values totaling $489.2 million at an average yield of 2.32% in 2024, while purchasing $1,327.3 million of securities at an average yield of 6.40%[552].

The bottom line of Flushing Financial Corporation (NASDAQ: FFIC ) is set to bounce back up this year, mostly on the back of net interest margin expansion. The recent balance sheet restructuring, the upcoming maturity of costly certificates of deposits, and the re-pricing ofAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own ...

4Q24 Earnings Conference Call January 29, 2025 Safe Harbor Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Presentation 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 Securi ...

For the quarter ended December 2024, Flushing Financial (FFIC) reported revenue of $57.22 million, up 7% over the same period last year. EPS came in at $0.14, compared to $0.25 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $50.35 million, representing a surprise of +13.64%. The company delivered an EPS surprise of -33.33%, with the consensus EPS estimate being $0.21.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Group 1: Earnings Performance - Flushing Financial reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.25 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $57.22 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 13.64%, compared to year-ago revenues of $53.49 million [2] - Over the last four quarters, Flushing Financial has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Flushing Financial shares have increased by approximately 2.9% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.24 on $53.7 million in revenues, and $1.28 on $228.4 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Financial - Savings and Loan industry, to which Flushing Financial belongs, is currently in the top 11% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for Flushing Financial is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6]

Financial Performance - The company reported a GAAP loss per share of $(1.61) for 4Q24 and $(1.05) for the full year 2024, with core EPS of $0.14 and $0.73, respectively [4]. - The company reported a net loss of $49,245,000 in Q4 2024, compared to a net income of $8,099,000 in Q4 2023, indicating a significant decline [36]. - Core net income for the quarter was $4,209 thousand, compared to $7,723 thousand in the previous quarter, reflecting a decrease of 45.5% [57]. - Basic loss per common share for Q4 2024 was $(1.61), compared to earnings of $0.27 per share in Q4 2023 [36]. - Core diluted earnings per common share decreased to $0.14 from $0.26 in the previous quarter, a drop of 46.15% [57]. Capital and Equity - The company raised $70 million in capital and completed a restructuring of its investment portfolio, which is expected to improve net interest margin (NIM) by 10-15 basis points in 1Q25 [2]. - The Company completed a $70 million common stock offering to strengthen the balance sheet [20]. - Stockholders' equity increased to $724,539 thousand from $669,837 thousand, representing a growth of approximately 8.16% [32]. - Total stockholders' equity increased to $724,539,000 in Q4 2024 from $666,891,000 in Q3 2024, a growth of 8.7% [38]. - Tangible stockholders' common equity rose to $705,780,000, compared to $648,035,000 in the prior quarter, reflecting an increase of 8.9% [66]. Asset Quality - Nonperforming assets (NPAs) totaled $51.3 million in 4Q24, representing 57 basis points of total assets [11]. - Nonperforming loans increased 32.4% YoY to $33.3 million but decreased 2.8% QoQ [17]. - The allowance for credit losses was $40,152,000 in Q4 2024, slightly down from $40,342,000 in Q3 2024 [38]. - Nonaccrual loans totaled $33,318 thousand, slightly down from $34,261 thousand in the prior quarter, indicating a decrease of 2.74% [52]. - Nonperforming Assets to Total Assets ratio improved slightly to 0.57% from 0.59% in the previous quarter [52]. Interest and Margin - NIM for 4Q24 was 2.39%, an increase of 29 basis points QoQ, while core NIM was 2.25%, up 18 basis points QoQ [11]. - Net Interest Margin FTE increased to 2.39%, up 10 bps YoY and 29 bps QoQ; cost of funds declined 34 bps QoQ [15]. - The net interest margin (tax equivalent) improved to 2.39% for the quarter, compared to 2.10% in the previous quarter [43]. - The net interest income excluding episodic items for Q4 2024 was $47,583,000, compared to $43,347,000 in Q3 2024, showing a 9.4% increase [62]. - The yield on total interest-earning assets was 5.60%, slightly up from 5.43% in the previous quarter [42]. Loans and Deposits - Average total deposits increased by 8.2% YoY to $7.4 billion, but decreased by 0.2% QoQ [11]. - Total deposits fell to $7,178,933,000 in Q4 2024 from $7,572,395,000 in Q3 2024, a decrease of 5.2% [38]. - Total net loans increased to $6,780,268 thousand as of December 31, 2024, up from $6,737,261 thousand in the previous quarter, representing a growth of 0.64% [40]. - Total loan closings were $225.2 million in 4Q24, up from $217.1 million in 3Q24 [22]. - The loan pipeline increased by 21.9% YoY but declined by 32.1% QoQ to $198.9 million [11]. Expenses - Noninterest expense grew by 12% YoY in 4Q24, with core noninterest expense growth of 6.6% YoY, aligning with the company's mid-single digit target for 2024 [11]. - Noninterest expense increased to $45,630,000 in Q4 2024 from $38,696,000 in Q3 2024, reflecting a rise of 17.5% [36]. - The efficiency ratio was reported at 79.01%, an increase from 76.69% in the previous year, indicating a decline in operational efficiency [32]. - The efficiency ratio for Q4 2024 was reported at 79.0%, compared to 77.2% in Q3 2024, indicating a decline in operational efficiency [60]. Tax and Regulatory - The effective tax rate was 31.5% in 4Q24, up from 22.3% in 3Q24 [21]. - Tier 1 capital ratio was 8.04%, up from 8.47% year-over-year, suggesting a decrease in capital adequacy [32].