[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) The registrant is FLUSHING FINANCIAL CORPORATION, filing for the quarterly period ended June 30, 2025 - The registrant is FLUSHING FINANCIAL CORPORATION, filing for the quarterly period ended June 30, 2025[2](index=2&type=chunk) - The company is an accelerated filer[4](index=4&type=chunk) - As of July 31, 2025, **33,778,438 shares of Common Stock** were outstanding[4](index=4&type=chunk) [TABLE OF CONTENTS](index=3&type=section&id=TABLE%20OF%20CONTENTS) The report is structured into PART I – FINANCIAL INFORMATION and PART II – OTHER INFORMATION, detailing financial statements, management's discussion, and other disclosures - The report is structured into PART I – FINANCIAL INFORMATION and PART II – OTHER INFORMATION[6](index=6&type=chunk) - PART I includes Financial Statements, Management's Discussion and Analysis, Quantitative and Qualitative Disclosures About Market Risk, and Controls and Procedures[6](index=6&type=chunk) - PART II covers Legal Proceedings, Risk Factors, Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, Mine Safety Disclosures, Other Information, and Exhibits[6](index=6&type=chunk) [PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025, and December 31, 2024 [ITEM 1. Financial Statements - (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20-%20(Unaudited)) This section presents the unaudited consolidated financial statements of Flushing Financial Corporation and its subsidiaries, including the Statements of Financial Condition, Operations, Comprehensive Income, Changes in Stockholders' Equity, Cash Flows, and accompanying notes, for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets decreased by **$262.4 million** to **$8.78 billion**, primarily due to reductions in securities and loans held for sale, while total liabilities decreased by **$244.3 million** from reduced borrowed funds | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $8,776,524 | $9,038,972 | | Total Liabilities | $8,070,147 | $8,314,433 | | Total Stockholders' Equity | $706,377 | $724,539 | - Securities available for sale decreased by **$106.1 million** to **$1.39 billion** at June 30, 2025, from **$1.50 billion** at December 31, 2024[8](index=8&type=chunk) - Loans held for sale decreased from **$70.1 million** at December 31, 2024, to **zero** at June 30, 2025[8](index=8&type=chunk) - Total borrowed funds decreased by **$315.9 million** to **$600.2 million** at June 30, 2025, from **$916.1 million** at December 31, 2024[8](index=8&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net income for the three months ended June 30, 2025, significantly increased to **$14.2 million**, but for the six months, it decreased to **$4.4 million** due to a goodwill impairment charge Net Income and EPS (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net income (loss) | $14,203 | $5,322 | 166.9% | | Basic earnings (loss) per common share | $0.41 | $0.18 | 127.8% | Net Income and EPS (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net income (loss) | $4,407 | $9,006 | -51.1% | | Basic earnings (loss) per common share | $0.12 | $0.30 | -60.0% | - Net interest income for the three months ended June 30, 2025, increased by **$10.4 million** to **$53.2 million**, up from **$42.8 million** in 2024[11](index=11&type=chunk) - Non-interest income for the three months ended June 30, 2025, increased by **$6.1 million** to **$10.3 million**, up from **$4.2 million** in 2024[11](index=11&type=chunk) - A goodwill impairment charge of **$17.6 million** was recorded for the six months ended June 30, 2025[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive net income for the three months ended June 30, 2025, was **$10.2 million**, but for the six months, the company reported a comprehensive net loss of **$4.0 million** due to unrealized losses on cash flow hedges Comprehensive Net Income (Loss) | Period | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Three months ended June 30 | $10,244 | $1,822 | | Six months ended June 30 | $(3,991) | $8,341 | - Net unrealized losses on cash flow hedges, net of taxes, amounted to **$(11.2 million)** for the six months ended June 30, 2025[13](index=13&type=chunk) - Change in net unrealized gains on securities available for sale, net of taxes, was **$3.0 million** for the six months ended June 30, 2025[13](index=13&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity decreased by **$18.2 million** to **$706.4 million** at June 30, 2025, primarily due to dividend payments and other comprehensive losses Stockholders' Equity | Date | Amount (in thousands) | | :--- | :--- | | June 30, 2025 | $706,377 | | December 31, 2024 | $724,539 | - Dividends on common stock totaled **$(7.6 million)** for the three months ended June 30, 2025, and **$(15.1 million)** for the six months ended June 30, 2025[15](index=15&type=chunk)[19](index=19&type=chunk) - Other comprehensive income (loss) for the six months ended June 30, 2025, was **$(8.4 million)**[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities generated **$32.6 million**, investing activities provided **$185.7 million**, while financing activities used **$220.8 million**, resulting in a net decrease of **$2.5 million** in cash Net Cash Flow by Activity (Six Months Ended June 30) | Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Operating Activities | $32,629 | $3,341 | | Investing Activities | $185,718 | $(569,305) | | Financing Activities | $(220,798) | $550,720 | - Net decrease in cash and cash equivalents was **$2.5 million** for the six months ended June 30, 2025[19](index=19&type=chunk) - Cash, cash equivalents, and restricted cash at June 30, 2025, totaled **$150.1 million**[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, financial instrument valuations, loan portfolio, regulatory capital, and other significant financial information [Note 1. Basis of Presentation](index=11&type=section&id=Note%201.%20Basis%20of%20Presentation) The unaudited consolidated financial statements are prepared in accordance with GAAP and SEC regulations for interim financial statements, including Flushing Financial Corporation and its subsidiaries - The Company's primary business is the operation of its wholly owned subsidiary, Flushing Bank[21](index=21&type=chunk) - Consolidated entities include Flushing Financial Corporation, Flushing Bank, Flushing Service Corporation, and FSB Properties Inc[22](index=22&type=chunk) - Statements are prepared in conformity with GAAP and SEC Form 10-Q instructions, with condensed or omitted information[23](index=23&type=chunk)[24](index=24&type=chunk) [Note 2. Use of Estimates](index=11&type=section&id=Note%202.%20Use%20of%20Estimates) Management makes estimates for the allowance for credit losses, deferred tax assets, and fair value of financial instruments, with goodwill impairment being a significant estimate in prior periods - Key estimates include the allowance for credit losses, valuation allowance of deferred tax assets, and fair value of financial instruments[26](index=26&type=chunk) - Goodwill impairment was a significant estimate for reporting periods preceding March 31, 2025[26](index=26&type=chunk) [Note 3. Earnings Per Share](index=12&type=section&id=Note%203.%20Earnings%20Per%20Share) Basic and diluted EPS for the three months ended June 30, 2025, was **$0.41**, up from **$0.18** in 2024, but for the six months, it was **$0.12**, down from **$0.30** in 2024 Basic and Diluted EPS (Three Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $0.41 | | 2024 | $0.18 | Basic and Diluted EPS (Six Months Ended June 30) | Year | EPS | | :--- | :--- | | 2025 | $0.12 | | 2024 | $0.30 | Dividend Payout Ratio | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | 53.7% | 122.2% | | Six months ended June 30 | 366.7% | 146.7% | [Note 4. Securities](index=12&type=section&id=Note%204.%20Securities) The securities portfolio totaled **$1.39 billion** at June 30, 2025, with gross unrealized losses of **$7.6 million** and an allowance for credit losses of **$3.1 million** for one municipal security Securities Held-to-Maturity (June 30, 2025) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Municipals | $43,360 | $37,940 | | FNMA | $7,826 | $7,146 | | **Total** | **$51,186** | **$45,086** | Securities Available for Sale (June 30, 2025) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Total other securities | $570,937 | $563,031 | | Total mortgage-backed securities | $825,880 | $828,756 | | **Total** | **$1,396,817** | **$1,391,787** | - An allowance for credit losses of **$3.1 million** was recorded for one municipal security at June 30, 2025, due to an identified credit loss[35](index=35&type=chunk)[42](index=42&type=chunk) - The Company holds **$10 million** of corporate debt from a New York-based bank holding company rated B1, which is on a watch list but not considered credit-related[36](index=36&type=chunk) [Note 5. Loans](index=18&type=section&id=Note%205.%20Loans) The loan portfolio, net of fees and costs, totaled **$6.71 billion** at June 30, 2025, with ACL increasing to **$41.2 million** and non-accrual loans significantly rising to **$51.0 million** Loan Composition (June 30, 2025) | Loan Type | Amount (in thousands) | | :--- | :--- | | Multi-family residential | $2,487,610 | | Commercial real estate | $1,987,523 | | Commercial business and other | $1,407,792 | | One-to-four family — mixed-use property | $493,846 | | One-to-four family — residential | $258,608 | | Construction | $46,798 | | Small Business Administration | $15,473 | | **Total loans, net of fees and costs** | **$6,709,601** | Allowance for Credit Losses (ACL) - Loans | Date | Amount (in thousands) | % of Gross Loans | % of Non-Performing Loans | | :--- | :--- | :--- | :--- | | June 30, 2025 | $41,247 | 0.62% | 83.8% | | December 31, 2024 | $40,152 | 0.60% | 120.5% | - Non-accrual loans increased from **$34.0 million** at December 31, 2024, to **$51.0 million** at June 30, 2025[55](index=55&type=chunk) - A provision for credit losses on loans of **$3.8 million** was recorded for the three months ended June 30, 2025, primarily due to increased reserves on Business Banking loans and charge-offs on Multi-Family residential loans[50](index=50&type=chunk) [Note 6. Loans held for sale](index=29&type=section&id=Note%206.%20Loans%20held%20for%20sale) Loans held for sale decreased to **zero** at June 30, 2025, from **$70.1 million** at December 31, 2024, largely due to reclassification and a **$2.6 million** net gain on sale - Loans held for sale decreased from **$70.1 million** at December 31, 2024, to **zero** at June 30, 2025[72](index=72&type=chunk) - **$32.1 million** of loans classified as held for sale were transferred back to held for investment during the three months ended June 30, 2025[72](index=72&type=chunk) - A net gain on sale of **$2.6 million** was recorded from the reversal of a previously recorded valuation allowance upon the reclassification of loans[72](index=72&type=chunk)[77](index=77&type=chunk) [Note 7. Leases](index=31&type=section&id=Note%207.%20Leases) The Company has 32 operating leases, with ROU assets of **$49.8 million** and liabilities of **$50.1 million** at June 30, 2025, and total lease cost of **$2.7 million** for the three months ended June 30, 2025 Lease Information (June 30, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Operating lease ROU assets | $49,759 | | Operating lease liabilities | $50,102 | | Weighted-average remaining lease term | 7.0 years | | Weighted average discount rate | 4.2% | Total Lease Cost | Period | Amount (in thousands) | | :--- | :--- | | Three months ended June 30, 2025 | $2,683 | | Six months ended June 30, 2025 | $5,375 | - The Company extended the term of its corporate headquarters operating lease by **3 years** during the three months ended June 30, 2025[79](index=79&type=chunk) [Note 8. Stock-Based Compensation](index=34&type=section&id=Note%208.%20Stock-Based%20Compensation) The 2024 Omnibus Incentive Plan authorizes **974,000 shares** for equity awards, with stock-based compensation costs of **$0.8 million** for the three months ended June 30, 2025, and **$6.5 million** in unrecognized compensation cost - The 2024 Omnibus Incentive Plan authorizes the issuance of up to **974,000 shares** for stock options, stock appreciation rights, restricted stock awards, RSUs, PRSUs, and other stock-based awards[86](index=86&type=chunk) Stock-Based Compensation Costs (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | $800 | $300 | | Six months ended June 30 | $1,300 | $1,300 | - As of June 30, 2025, there was **$6.5 million** of total unrecognized compensation cost related to RSU and PRSU awards, expected to be recognized over a weighted-average period of **2.1 years**[91](index=91&type=chunk) [Note 9. Pension and Other Postretirement Benefit Plans](index=37&type=section&id=Note%209.%20Pension%20and%20Other%20Postretirement%20Benefit%20Plans) For the three months ended June 30, 2025, net employee pension benefit was **$(74) thousand**, net outside director pension benefit was **$(11) thousand**, and net other postretirement expense was **$105 thousand** Net Expense for Pension and Other Postretirement Benefit Plans (Three Months Ended June 30, 2025, in thousands) | Plan | Net Benefit (Expense) | | :--- | :--- | | Employee Pension Plan | $(74) | | Outside Director Pension Plan | $(11) | | Other Postretirement Benefit Plans | $105 | - The Company expects to contribute **$0.1 million** to the outside director pension plan and **$0.3 million** to other postretirement benefit plans during 2025, with no expected contribution to the employee pension plan[98](index=98&type=chunk) [Note 10. Fair Value of Financial Instruments](index=38&type=section&id=Note%2010.%20Fair%20Value%20of%20Financial%20Instruments) The Company measures certain financial assets and liabilities at fair value, with a net gain of **$1.7 million** from fair value adjustments for the three months ended June 30, 2025, and impaired loans totaling **$26.3 million** Net Gain (Loss) from Fair Value Adjustments (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | $1,656 | $57 | | Six months ended June 30 | $1,504 | $(777) | - Fair value measurements are categorized into Level 1 (quoted market prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[105](index=105&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Impaired loans carried at fair value on a non-recurring basis totaled **$26.3 million** at June 30, 2025[115](index=115&type=chunk) - Junior subordinated debentures, valued under Level 3, had a fair value of **$47.6 million** at June 30, 2025, with effective yields as significant unobservable inputs[114](index=114&type=chunk) [Note 11. Derivative Financial Instruments](index=46&type=section&id=Note%2011.%20Derivative%20Financial%20Instruments) The Company uses interest rate swaps and floor options to manage interest rate risk, with a total notional value of approximately **$2.6 billion** at June 30, 2025, and a **$4.8 million** effect on net income for the three months ended June 30, 2025 - Derivative financial instruments include interest rate swaps and interest rate floor options[124](index=124&type=chunk) - Derivatives are used to mitigate exposure to rising interest rates on fixed-rate loans, facilitate customer risk management, mitigate exposure to rising rates on short-term advances/brokered deposits, and mitigate exposure to decreasing rates on adjustable-rate loans[124](index=124&type=chunk) Notional Amount of Derivatives (June 30, 2025, in thousands) | Category | Notional Amount (Assets) | Notional Amount (Liabilities) | | :--- | :--- | :--- | | Cash flow hedges | $305,000 | $520,750 | | Fair value hedges | $437,002 | $275,000 | | Non hedge | $523,193 | $523,193 | | **Total** | **$1,265,195** | **$1,318,943** | Effect of Derivative Instruments on Net Income (in thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | $4,824 | $11,284 | | Six months ended June 30 | $11,301 | $22,682 | [Note 12. Accumulated Other Comprehensive Income (Loss)](index=51&type=section&id=Note%2012.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) AOCI was **$(1.3 million)** at June 30, 2025, with a net current period other comprehensive loss of **$(8.4 million)** for the six months, primarily due to unrealized losses on cash flow hedges - The ending balance of Accumulated Other Comprehensive Income (Loss), net of tax, was **$(1.3 million)** at June 30, 2025[138](index=138&type=chunk)[140](index=140&type=chunk) - Net current period other comprehensive income (loss), net of tax, for the six months ended June 30, 2025, was **$(8.4 million)**[140](index=140&type=chunk) - Unrealized losses on cash flow hedges (net of tax) were **$(11.2 million)** for the six months ended June 30, 2025[140](index=140&type=chunk) - Unrealized gains on available for sale securities (net of tax) were **$3.0 million** for the six months ended June 30, 2025[140](index=140&type=chunk) [Note 13. Regulatory Capital](index=57&type=section&id=Note%2013.%20Regulatory%20Capital) Both Flushing Bank and Flushing Financial Corporation remain 'well-capitalized' as of June 30, 2025, exceeding all regulatory capital requirements, with the Capital Conservation Buffer for the Bank at **5.74%** and the Company at **5.10%** - The Bank and Company are categorized as 'well-capitalized' under prompt corrective action regulations[145](index=145&type=chunk)[149](index=149&type=chunk) Bank Capital Levels (June 30, 2025) | Capital Ratio | Capital Level | Requirement to be Well-Capitalized | Excess | | :--- | :--- | :--- | :--- | | Tier I (leverage) capital | 9.82% | 5.00% | 4.82% | | Common Equity Tier I risk-based capital | 13.11% | 6.50% | 6.61% | | Tier I risk-based capital | 13.11% | 8.00% | 5.11% | | Total risk-based capital | 13.74% | 10.00% | 3.74% | Company Capital Levels (June 30, 2025) | Capital Ratio | Capital Level | Requirement to be Well-Capitalized | Excess | | :--- | :--- | :--- | :--- | | Tier I (leverage) capital | 8.31% | 5.00% | 3.31% | | Common Equity Tier I risk-based capital | 10.41% | 6.50% | 3.91% | | Tier I risk-based capital | 11.10% | 8.00% | 3.10% | | Total risk-based capital | 14.57% | 10.00% | 4.57% | Capital Conservation Buffer (CCB) | Entity | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank | 5.74% | 5.11% | | Company | 5.10% | 4.82% | [Note 14. Segment Reporting](index=58&type=section&id=Note%2014.%20Segment%20Reporting) The Company operates as a single reportable segment, a community bank, with performance evaluated based on net income, return on assets, and return on equity - The Company operates as a single reportable segment: a community bank[151](index=151&type=chunk) - The CODM uses net income (loss), return on average assets, and return on average equity to evaluate performance[152](index=152&type=chunk) Key Performance Metrics (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) | $14,203 thousand | $5,322 thousand | | Diluted earnings (loss) per common share | $0.41 | $0.18 | | Return on average assets | 0.64% | 0.24% | | Return on average equity | 8.00% | 3.19% | [Note 15. New Authoritative Accounting Pronouncements](index=59&type=section&id=Note%2015.%20New%20Authoritative%20Accounting%20Pronouncements) The Company adopted ASU No. 2023-09 on January 1, 2025, impacting disclosures, and is evaluating ASU No. 2024-03, effective for annual periods beginning after December 15, 2026 - ASU No. 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' was adopted on January 1, 2025, affecting disclosures only[156](index=156&type=chunk) - ASU No. 2024-03, 'Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures,' is pending adoption, effective for annual periods beginning after December 15, 2026[157](index=157&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of the Company's financial performance and condition, highlighting increased net income for the three months ended June 30, 2025, but a decrease for the six-month period due to a goodwill impairment charge [Executive Summary](index=61&type=section&id=Executive%20Summary) Flushing Financial Corporation reported a substantial increase in net income to **$14.2 million** for the three months ended June 30, 2025, driven by a **49 basis point** increase in net interest margin to **2.54%**, maintaining a well-capitalized status - Net income for the three months ended June 30, 2025, was **$14.2 million**, an increase of **166.9%** from **$5.3 million** in the prior year[167](index=167&type=chunk) - The net interest margin increased **49 basis points** to **2.54%** for the three months ended June 30, 2025[168](index=168&type=chunk) - Approximately **90%** of the loan portfolio is collateralized by real estate, with an average loan to value of less than **35%** at origination[169](index=169&type=chunk) Asset Quality Ratios (June 30, 2025) | Metric | Ratio | | :--- | :--- | | Allowance for credit losses (ACL) to gross loans | 0.62% | | ACL to non-performing loans | 83.8% | | Non-performing assets to total assets | 0.75% | [Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024](index=64&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030,%202025%20and%202024) Net income increased by **166.9%** to **$14.2 million**, with diluted EPS rising to **$0.41**, driven by a **24.4%** increase in net interest income and a **143.8%** increase in non-interest income Operating Data Highlights (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net interest income (loss) | $53,209 | $42,776 | | Provision (benefit) for credit losses | $4,194 | $809 | | Non-interest income (loss) | $10,277 | $4,216 | | Net income (loss) | $14,203 | $5,322 | | Diluted earnings (loss) per common share | $0.41 | $0.18 | - Interest and dividend income increased by **3.7%** to **$117.4 million**, with the yield on interest-earning assets rising **16 basis points** to **5.59%**[173](index=173&type=chunk) - Interest expense decreased by **8.9%** to **$64.2 million**, as the average cost of interest-bearing liabilities declined **37 basis points** to **3.58%**[174](index=174&type=chunk) - The increase in net gain on sale of loans was driven by the reversal of a previously recorded valuation allowance upon the reclassification of loans held for sale to loans held for investment[177](index=177&type=chunk) [Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024](index=67&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Net income decreased by **51.1%** to **$4.4 million**, primarily due to a **$17.6 million** non-cash goodwill impairment charge, despite a **24.7%** increase in net interest income Operating Data Highlights (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net interest income (loss) | $106,198 | $85,173 | | Provision (benefit) for credit losses | $8,512 | $1,401 | | Non-interest income (loss) | $15,351 | $7,300 | | Net income (loss) | $4,407 | $9,006 | | Diluted earnings (loss) per common share | $0.12 | $0.30 | - The primary reason for the decrease in net income was a **$17.6 million** non-cash, non-tax deductible goodwill impairment charge[182](index=182&type=chunk)[188](index=188&type=chunk) - Interest and dividend income increased by **5.0%** to **$233.9 million**, with the yield on interest-earning assets rising **18 basis points** to **5.55%**[183](index=183&type=chunk) - Interest expense decreased by **7.1%** to **$127.7 million**, due to a **35 basis point** decrease in the average cost of interest-bearing liabilities to **3.54%**[184](index=184&type=chunk) - The effective tax rate for the six months ended June 30, 2025, was **66.1%**, up from **25.8%** in 2024, primarily due to the non-tax deductible goodwill impairment and income tax audit settlements[190](index=190&type=chunk) [Financial Condition](index=70&type=section&id=Financial%20Condition) Total assets decreased by **2.9%** to **$8.78 billion**, while loan originations increased by **30.2%**, and non-performing assets rose by **28.9%** to **$66.1 million** - Total assets at June 30, 2025, were **$8.78 billion**, a decrease of **$262.4 million (2.9%)** from December 31, 2024[192](index=192&type=chunk) - Available for sale securities decreased by **$106.1 million (7.1%)** to **$1.39 billion**[192](index=192&type=chunk) - Loan originations and purchases for the six months ended June 30, 2025, were **$333.3 million**, an increase of **30.2%** from **$255.9 million** in 2024[192](index=192&type=chunk)[193](index=193&type=chunk) - Non-performing assets totaled **$66.1 million** at June 30, 2025, an increase of **$14.8 million (28.9%)** from December 31, 2024[196](index=196&type=chunk) - The ratio of ACL – loans to total non-performing loans was **83.8%** at June 30, 2025, compared to **120.5%** at December 31, 2024[196](index=196&type=chunk) [Liabilities](index=71&type=section&id=Liabilities) Total liabilities decreased by **2.9%** to **$8.07 billion**, with deposits increasing by **1.3%** to **$7.22 billion**, while borrowed funds significantly decreased by **34.5%** - Total liabilities were **$8.07 billion** at June 30, 2025, a decrease of **$244.3 million (2.9%)** from December 31, 2024[199](index=199&type=chunk) - Due to depositors increased by **$95.1 million (1.3%)** to **$7.22 billion**, primarily from a **$320.1 million** increase in NOW accounts[199](index=199&type=chunk) - Borrowed funds decreased by **$315.9 million (34.5%)** during the six months ended June 30, 2025[199](index=199&type=chunk) - Uninsured deposits totaled **$2.5 billion (34.7% of deposits)**, with **$1.2 billion** being uninsured and uncollateralized at June 30, 2025[199](index=199&type=chunk) - Brokered deposits decreased by **$129.7 million (9.8%)** to **$1.19 billion** at June 30, 2025[200](index=200&type=chunk) [Equity](index=72&type=section&id=Equity) Total stockholders' equity decreased by **2.5%** to **$706.4 million** at June 30, 2025, due to **$15.1 million** in dividends and an **$8.4 million** decrease in other comprehensive income, with book value per common share decreasing to **$20.91** - Total stockholders' equity was **$706.4 million** at June 30, 2025, a decrease of **$18.2 million (2.5%)** from December 31, 2024[201](index=201&type=chunk) - Dividends paid on common stock totaled **$15.1 million ($0.44 per common share)** for the six months ended June 30, 2025[201](index=201&type=chunk) - Book value per common share was **$20.91** at June 30, 2025, down from **$21.53** at December 31, 2024[201](index=201&type=chunk) [Liquidity](index=72&type=section&id=Liquidity) The Company maintains strong liquidity with **$3.6 billion** in combined available liquidity at June 30, 2025, from internal and external sources, and cash and cash equivalents totaling **$150.1 million** - Total available liquidity was **$3.59 billion** at June 30, 2025[203](index=203&type=chunk) Available Liquidity by Source (June 30, 2025, in millions) | Source | Net Availability | | :--- | :--- | | Unencumbered Securities | $767.4 | | Federal Home Loan Bank | $679.8 | | Federal Reserve Bank | $1,616.2 | | Other Banks | $457.0 | - Cash and cash equivalents totaled **$150.1 million** at June 30, 2025, with **$20.6 million** being restricted cash[203](index=203&type=chunk) [Interest Rate Risk](index=73&type=section&id=Interest%20Rate%20Risk) The Company manages interest rate risk through ALCO and Board ALCO, remaining within Board-set guidelines for net portfolio value and net interest income changes under various rate shock scenarios, supported by a **$2.6 billion** derivative portfolio - Interest rate risk is assessed and managed by the Asset/Liability Management Committee (ALCO) and the Investment Committee of the Board of Directors (Board ALCO)[205](index=205&type=chunk) Projected Percentage Change in Net Portfolio Value (June 30, 2025) | Change in Interest Rate | Projected % Change | | :--- | :--- | | -200 Basis points | 6.0% | | -100 Basis points | 2.7% | | +100 Basis points | (5.4)% | | +200 Basis points | (11.5)% | Projected Percentage Change in Net Interest Income (June 30, 2025) | Change in Interest Rate | Projected % Change | | :--- | :--- | | -200 Basis points | -% | | -100 Basis points | (0.4)% | | +100 Basis points | (3.8)% | | +200 Basis points | (8.5)% | - At June 30, 2025, the Company had a derivative portfolio with a notional value totaling **$2.6 billion**, designed to provide protection against rising interest rates[217](index=217&type=chunk) [Average Balances](index=77&type=section&id=Average%20Balances) For the three months ended June 30, 2025, average interest-earning assets were **$8.4 billion** with a yield of **5.59%**, resulting in **$53.3 million** net interest income and a **2.54%** net interest margin Average Balances and Yields/Costs (Three Months Ended June 30, 2025, in thousands) | Metric | Average Balance | Interest/Cost | Yield/Cost | | :--- | :--- | :--- | :--- | | Total interest-earning assets | $8,402,582 | $117,498 | 5.59% | | Total interest-bearing liabilities | $7,176,399 | $64,193 | 3.58% | | Net interest income | - | $53,305 | - | | Net interest margin | $1,226,183 | - | 2.54% | Average Balances and Yields/Costs (Six Months Ended June 30, 2025, in thousands) | Metric | Average Balance | Interest/Cost | Yield/Cost | | :--- | :--- | :--- | :--- | | Total interest-earning assets | $8,435,565 | $234,130 | 5.55% | | Total interest-bearing liabilities | $7,218,514 | $127,740 | 3.54% | | Net interest income (tax equivalent) | - | $106,390 | - | | Net interest margin (tax equivalent) | $1,217,051 | - | 2.52% | [Loans Held for Investment](index=79&type=section&id=Loans%20Held%20for%20Investment) For the six months ended June 30, 2025, mortgage loan originations increased to **$121.3 million**, commercial business loan originations reached **$134.6 million**, with total mortgage loans held for investment at **$5.27 billion** Mortgage Loans Held for Investment Activity (Six Months Ended June 30, 2025, in thousands) | Activity | Amount | | :--- | :--- | | At beginning of period | $5,316,249 | | Mortgage loans originated | $121,272 | | Mortgage loans purchased | $35,148 | | Principal reductions | $(212,866) | | Mortgage loan sales | $(18,374) | | **At end of period** | **$5,274,385** | Commercial Business Loans Held for Investment Activity (Six Months Ended June 30, 2025, in thousands) | Activity | Amount | | :--- | :--- | | At beginning of period | $1,421,527 | | Commercial business and other loans originated | $134,615 | | Commercial business loans purchased | $42,217 | | Principal reductions | $(163,190) | | **At end of period** | **$1,423,265** | [Non-Performing Assets](index=80&type=section&id=Non-Performing%20Assets) Total non-performing assets increased by **28.9%** to **$66.1 million** at June 30, 2025, primarily due to an increase in non-accrual mortgage and commercial real estate loans, resulting in a **0.75%** non-performing assets to total assets ratio Non-Performing Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total non-accrual loans | $49,247 | $33,318 | | Available for sale securities | $16,878 | $18,000 | | **Total non-performing assets** | **$66,125** | **$51,318** | - Non-performing loans to gross loans increased to **0.74%** at June 30, 2025, from **0.49%** at December 31, 2024[225](index=225&type=chunk) - Non-performing assets to total assets increased to **0.75%** at June 30, 2025, from **0.57%** at December 31, 2024[225](index=225&type=chunk) [Criticized and Classified Assets](index=80&type=section&id=Criticized%20and%20Classified%20Assets) The amortized cost of Criticized and Classified assets decreased slightly by **$1.3 million** to **$90.6 million** at June 30, 2025, with loans designated based on credit quality assessments - The amortized cost of Criticized and Classified assets was **$90.6 million** at June 30, 2025, a decrease of **$1.3 million** from **$91.9 million** at December 31, 2024[226](index=226&type=chunk) - Loans are designated as 'Special Mention,' 'Substandard,' 'Doubtful,' or 'Loss' based on credit risk[61](index=61&type=chunk) - Consumer mortgage loans in formal foreclosure proceedings totaled **$2.5 million** at June 30, 2025[227](index=227&type=chunk) [Allowance for Credit Losses](index=81&type=section&id=Allowance%20for%20Credit%20Losses) The total Allowance for Credit Losses (ACL) increased to **$45.6 million** at June 30, 2025, driven by an **$8.1 million** provision for credit losses on loans, partially offset by **$7.0 million** in net charge-offs Allowance for Credit Losses (Six Months Ended June 30, 2025, in thousands) | Category | Amount | | :--- | :--- | | Balance at beginning of period | $40,152 | | Loans- provision (benefit) | $8,071 | | Loans- charge-off (net of recoveries) | $(6,976) | | **Allowance for credit losses - loans** | **$41,247** | | **Total Allowance for credit losses** | **$45,644** | - The ratio of ACL - loans to gross loans was **0.62%** at June 30, 2025[229](index=229&type=chunk) - The ratio of ACL - loans to non-accrual loans was **83.76%** at June 30, 2025[229](index=229&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the 'Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk' for detailed market risk disclosures - For market risk disclosures, refer to the 'Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk' section[230](index=230&type=chunk) [ITEM 4. Controls and Procedures](index=83&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the period - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[230](index=230&type=chunk) - No material changes in internal control over financial reporting occurred during the period[230](index=230&type=chunk) [PART II — OTHER INFORMATION](index=84&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, defaults, mine safety disclosures, other information, and exhibits [ITEM 1. Legal Proceedings](index=84&type=section&id=ITEM%201.%20Legal%20Proceedings) The Company is a defendant in various lawsuits, but management believes these will not have a material adverse effect on its financial condition or results - The Company is a defendant in various lawsuits[232](index=232&type=chunk) - Management believes the resolution of these matters will not result in any material adverse effect on the Company's financial condition, results of operations, and cash flows[232](index=232&type=chunk) [ITEM 1A. Risk Factors](index=84&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[233](index=233&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company did not repurchase any common stock during the three months ended June 30, 2025, with **807,964 shares** remaining authorized for repurchase under programs with no expiration - The Company did not repurchase any shares of common stock during the three months ended June 30, 2025[234](index=234&type=chunk) - As of June 30, 2025, **807,964 shares** remained to be repurchased under currently authorized stock repurchase programs[234](index=234&type=chunk) - The stock repurchase authorizations have no expiration or maximum dollar amount[234](index=234&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=84&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[235](index=235&type=chunk) [ITEM 4. Mine Safety Disclosures](index=84&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[236](index=236&type=chunk) [ITEM 5. Other Information](index=84&type=section&id=ITEM%205.%20Other%20Information) No other information is reported under this item - None[237](index=237&type=chunk) [ITEM 6. Exhibits](index=85&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate organizational documents, indentures, new severance policies, and Sarbanes-Oxley Act certifications - Exhibits include Certificate of Incorporation, Amended and Restated By-Laws, and Indentures[239](index=239&type=chunk)[242](index=242&type=chunk) - New policies filed include the Flushing Bank Specified Officer Change in Control Severance Policy and the Employee Severance Compensation Plan for Senior Vice Presidents, Vice Presidents and Assistant Vice Presidents, both effective July 2025[239](index=239&type=chunk)[240](index=240&type=chunk)[242](index=242&type=chunk)[244](index=244&type=chunk) - Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 by the CEO and CFO are included[239](index=239&type=chunk)[242](index=242&type=chunk) [SIGNATURES](index=89&type=section&id=SIGNATURES) The report was signed by John R. Buran, President and CEO, and Susan K. Cullen, Senior EVP, Treasurer, and CFO, on August 7, 2025 - The report is signed by John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President, Treasurer and Chief Financial Officer[247](index=247&type=chunk) - The report was dated August 7, 2025[247](index=247&type=chunk)

Image source: The Motley Fool. Friday, July 25, 2025 at 3:00 p.m. ET Call participants President & Chief Executive Officer — John R. Buran Senior Executive Vice President & Chief Financial Officer — Susan K. Cullen Need a quote from a Motley Fool analyst? Email [email protected] Takeaways GAAP EPS-- $0.41 (GAAP, Q2 2025), an increase of 12,878% from Q2 2024, driven by fair value adjustments on debt and the reversal of a valuation allowance following the reclassification of loans held for sale to loans held ...

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.41 and core earnings per share of $0.32, representing an increase of 12878% year over year [5] - GAAP net interest margin expanded by three basis points quarter over quarter to 2.54%, while core net interest margin also increased by three basis points to 2.52% [6] - Average total deposits increased by 6% year over year and 1% quarter over quarter to $7.6 billion [6] - Pre-provision pre-tax net revenue reached $23.1 million, the highest level since 2022 [6] - Tangible common equity grew by 25 basis points to 8.04% [8] Business Line Data and Key Metrics Changes - Core net interest income increased by $10.5 million year over year, driven by loan yields increasing by seven basis points [10] - Non-interest bearing deposits grew by 6% year over year and 2% quarter over quarter [12] - New checking account openings increased by 21% year over year and 8% quarter over quarter, indicating strong customer acquisition [12] Market Data and Key Metrics Changes - The bank's commercial real estate concentration decreased to under 500% for the first time since Q3 2023 [7] - Non-performing loans in the multifamily portfolio halved to 50 basis points, down from 101 basis points in the previous quarter [19] - Criticized and classified loans in the multifamily segment improved to 73 basis points from 116 basis points [19] Company Strategy and Development Direction - The company focuses on improving profitability, maintaining credit discipline, and preserving strong liquidity and capital [8] - The asset repricing strategy is expected to drive net interest margin expansion, with real estate loans projected to reprice approximately 160 basis points higher through 2027 [9] - The company is committed to serving the Asian American communities, with deposits in this market growing to $1.4 billion, reflecting a 12.4% compound annual growth rate since Q2 2022 [26] Management's Comments on Operating Environment and Future Outlook - Management expects total assets to remain stable, with loan growth being market-dependent [27] - The company anticipates some seasonal deposit outflows in Q3 but expects recovery in Q4 [27] - The effective tax rate is expected to be lowered to a range of 24.5% to 26.5% for the remainder of 2025 [28] Other Important Information - The company maintains a strong liquidity position with approximately $4 billion of undrawn lines and resources at quarter end [25] - The reliance on wholesale funding is limited, with uninsured and uncollateralized deposits representing only 17% of total deposits [25] Q&A Session Summary Question: What caused the $400 million decline in deposits? - Management indicated that the decline was mostly seasonal, related to government deposits moving out, and expected a recovery later in the year [34][35] Question: What would happen to margins if the Fed cuts rates? - A return to a more normal yield curve would be positive for the company, potentially leading to a couple of basis points improvement in margins [38][39] Question: Will there be buybacks in the second half of the year? - Management stated that they are focused on building capital stronger before considering buybacks, prioritizing profitable growth and dividends [44] Question: What drove the decrease in expense outlook? - The decrease was attributed to managing expenses tightly and some accruals related to incentive compensation [50] Question: What is the outlook for non-CD deposit repricing? - Management noted limited opportunities to reduce funding costs until the Fed makes a move, with most support for net interest margin expected from asset-side loan repricing [56]

Financial Performance - GAAP NIM increased 3 bps QoQ to 2.54%[6] - Core NIM expands 3 bps QoQ to 2.52%[6] - Average total deposits increased 5.7% YoY and 0.6% QoQ to $7.6 billion[6] - Core NII FTE increased by $10.5 million YoY[11] - PPNR of $23.1 million in 2Q25 at highest level since 3Q22[6] Asset Quality - Net charge-offs totaled 15 bps for 2Q25, less than 1 bp of net recoveries in 2Q24, and 27 bps in 1Q25[6] - NPAs to assets of 75 bps at 2Q25 compared to 61 bps at 2Q24 and 71 bps at 1Q25[6] - Criticized and Classified loan to total loans of 108 bps, down from 113 in 2Q24 and 133 in 1Q25[6] Capital and Liquidity - Tangible common equity ratio of 8.04%, up 25 bps QoQ[6] - Liquidity remains strong with $3.6 billion of undrawn lines and resources at quarter end[6] - Asian Communities – Total Loans $740.6 million and Deposits $1.36 billion[39] Loan Portfolio - Multifamily portfolio size is $2.5 billion with NPLs/Loans at 50 bps[29] - Investor CRE portfolio size is $2.0 billion with NPLs/Loans at 33 bps[33]

Core Insights - Flushing Financial reported a revenue of $63.49 million for the quarter ended June 2025, marking a 35.1% increase year-over-year and exceeding the Zacks Consensus Estimate by 8.15% [1] - The earnings per share (EPS) for the quarter was $0.32, up from $0.18 in the same quarter last year, representing a surprise of 10.34% over the consensus estimate of $0.29 [1] Financial Performance Metrics - Efficiency ratio stood at 67.7%, better than the average estimate of 72.2% from two analysts [4] - Net Interest Margin was reported at 2.5%, matching the average estimate [4] - Total interest-earning assets averaged $8.4 billion, slightly below the average estimate of $8.43 billion [4] - Net Interest Income was $53.21 million, surpassing the average estimate of $52.59 million [4] - Total Non-Interest Income reached $10.28 million, significantly higher than the average estimate of $6.11 million [4] - Banking services fee income was $1.95 million, exceeding the average estimate of $1.47 million [4] Stock Performance - Flushing Financial's shares returned +8.5% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

分组1 - Flushing Financial reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.18 per share a year ago, representing an earnings surprise of +10.34% [1] - The company posted revenues of $63.49 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.15%, compared to year-ago revenues of $46.99 million [2] - Flushing Financial has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 12.5% since the beginning of the year, while the S&P 500 gained 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.30 on revenues of $59.05 million, and for the current fiscal year, it is $1.15 on revenues of $236.05 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for the sector [8]

[Executive Summary & Q2 2025 Performance](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Performance) This section provides an overview of the CEO's commentary, key performance metrics, and detailed highlights for Q2 2025, emphasizing strategic execution and financial strength [CEO Commentary](index=1&type=section&id=CEO%20Commentary) John R. Buran, President and CEO, emphasized the successful execution of strategic priorities in Q2 2025, leading to net interest margin expansion, significant noninterest-bearing deposit growth, and improved capital ratios - Successful execution of strategic priorities, building upon foundational actions from preceding quarters[2](index=2&type=chunk) - Pleased to report another quarter of net interest margin expansion, with both GAAP and Core NIM increasing[2](index=2&type=chunk) - Strong year-over-year growth in average noninterest-bearing deposits, which increased **6.4%**[2](index=2&type=chunk) - Tangible common equity to tangible assets ratio of **8.04%**, a significant improvement from the prior year[2](index=2&type=chunk) - Maintain disciplined underwriting standards and proactive risk management for long-term shareholder value[2](index=2&type=chunk) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Flushing Financial Corporation reported strong Q2 2025 results with significant year-over-year increases in GAAP and Core EPS, driven by net interest margin expansion and robust average deposit growth 2Q25 Earnings Performance and Key Metrics | Metric | 2Q25 Value | YoY Change | QoQ Change | | :----- | :--------- | :--------- | :--------- | | GAAP EPS | $0.41 | 127.8% | -241.4% | | Core EPS | $0.32 | 77.8% | 39.1% | | GAAP NIM FTE | 2.54% | 49 bps | 3 bps | | Core NIM FTE | 2.52% | 49 bps | 3 bps | | Average Deposits | $7.6 billion | 5.7% | 0.6% | | Average Noninterest Bearing Deposits | N/A | 6.4% | 2.4% | | GAAP Pre-provision Pre-tax Net Revenue | N/A | 191.1% | N/A | | Core Pre-provision Pre-tax Net Revenue | N/A | 134.5% | N/A | - Credit metrics stable to improving: NPAs to assets were **75 bps** (compared to 71 bps prior quarter), Criticized and classified loans totaled **108 bps** of gross loans (compared to 133 bps in the prior quarter), Net charge-offs to average loans were **15 bps** (compared to 27 bps in 1Q25)[5](index=5&type=chunk) - Capital expanded QoQ: TCE/TA was **8.04%** at June 30, 2025, compared to 7.79% at March 31, 2025[5](index=5&type=chunk) [Detailed Q2 2025 Highlights](index=3&type=section&id=Detailed%202Q25%20Highlights) Key achievements in Q2 2025 included further expansion of GAAP and Core Net Interest Margin, improved profitability metrics, and an increase in tangible book value per share - GAAP and Core NIM expanded **3 bps** each QoQ to **2.54%** and **2.52%**, respectively[9](index=9&type=chunk)[10](index=10&type=chunk) - GAAP ROAA and ROAE increased **107 bps** and **1,336 bps** QoQ; Core ROAA and ROAE improved **15 bps** and **195 bps** QoQ[9](index=9&type=chunk) - Tangible book value per share increased **0.5%** QoQ to **$20.89** at June 30, 2025[9](index=9&type=chunk)[10](index=10&type=chunk) - Approximately **90%** of the loan portfolio is collateralized by real estate with an average loan to value of less than **35%**[9](index=9&type=chunk) - Maintaining ample liquidity with **$3.6 billion** of undrawn lines and resources as of June 30, 2025[9](index=9&type=chunk) - Total average deposits increased by **5.7%** YoY and **0.6%** QoQ; Average noninterest bearing deposits increased **6.4%** YoY and **2.4%** QoQ[9](index=9&type=chunk)[10](index=10&type=chunk) - Tangible Common Equity to Tangible Assets was **8.04%** at June 30, 2025, up **92 bps** YoY and **25 bps** QoQ[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's income statement, highlighting trends in net interest income, noninterest income, expenses, and credit loss provisions [Income Statement Highlights](index=5&type=section&id=Income%20Statement%20Highlights) The company experienced significant year-over-year growth in net interest income, noninterest income, and net income, while noninterest expense saw a notable quarter-over-quarter decrease Income Statement Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Net Interest Income | $53,209 | $52,989 | $42,776 | 24.4 % | 0.4 % | | Provision for Credit Losses | 4,194 | 4,318 | 809 | 418.4 % | (2.9) % | | Noninterest Income (Loss) | 10,277 | 5,074 | 4,216 | 143.8 % | 102.5 % | | Noninterest Expense | 40,356 | 59,676 | 39,047 | 3.4 % | (32.4) % | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | 166.9 % | (245.0) % | | Diluted Earnings (Loss) per Common Share | $0.41 | ($0.29) | $0.18 | 127.8 % | (241.4) % | | Core Net Income | $11,162 | $7,931 | $5,456 | 104.6 % | 40.7 % | | Core EPS | $0.32 | $0.23 | $0.18 | 77.8 % | 39.1 % | - Net charge-offs (recoveries) were **$2.5 million** (**15 bps** of average loans) in 2Q25, compared to **$(92,000)** ((1) bp of average loans) in 2Q24 and **$4.4 million** (**27 bps** of average loans) in 1Q25[12](index=12&type=chunk) - Net Interest Margin FTE of **2.54%** increased **49 bps** YoY and **3 bps** QoQ; the cost of funds increased **6 bps** QoQ primarily due to swap maturities and forward starting swaps at higher rates, while the yield on interest earning assets increased **8 bps** QoQ[15](index=15&type=chunk) - Effective tax rate was **25.0%** in 2Q25 compared to **25.4%** in 2Q24 and **(65.2)%** in 1Q25, with the 1Q25 rate primarily related to a non-tax deductible goodwill impairment[15](index=15&type=chunk) [Balance Sheet, Credit Quality, and Capital](index=7&type=section&id=Balance%20Sheet%2C%20Credit%20Quality%2C%20and%20Capital) This section reviews the company's balance sheet, credit quality metrics, and capital ratios, highlighting trends in loans, deposits, nonperforming assets, and capital adequacy [Balance Sheet, Credit Quality, and Capital Highlights](index=7&type=section&id=Balance%20Sheet%2C%20Credit%20Quality%2C%20and%20Capital%20Highlights) The balance sheet showed a slight decrease in average loans YoY but an increase QoQ, while average total deposits increased both YoY and QoQ Balance Sheet & Capital Key Figures (2Q25 vs. Prior Periods) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :----- | :--- | :--- | :--- | :--------- | :--------- | | Avg Loans ($B) | $6.7 | $6.7 | $6.7 | (1.0)% | 0.1% | | Avg Dep ($B) | $7.6 | $7.6 | $7.2 | 5.7% | 0.6% | | Book Value/Share | $20.91 | $20.81 | $22.89 | (8.7)% | 0.5% | | Tangible BV/Share | $20.89 | $20.78 | $22.24 | (6.1)% | 0.5% | | TCE/TA (%) | 8.04% | 7.79% | 7.12% | 92 bps | 25 bps | | Leverage Ratio (%) | 8.31% | 8.12% | 8.18% | 13 bps | 19 bps | Credit Quality Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Nonperforming Loans | $49,247 | $46,263 | $34,540 | 42.6 % | 6.5 % | | Nonperforming Assets | 66,125 | 64,263 | 55,832 | 18.4 % | 2.9 % | | Criticized and Classified Loans | 72,005 | 89,673 | 76,485 | (5.9) % | (19.7) % | | NPAs/Loans & OREO (%) | 0.99 | 0.95 | 0.82 | 17 bps | 4 bps | | ACLs/Loans (%) | 0.62 | 0.59 | 0.61 | 1 bp | 3 bps | | ACLs/NPLs (%) | 83.76 | 86.54 | 120.58 | (36.82) bps | (2.78) bps | | NCOs/Avg Loans (%) | 0.15 | 0.27 | (0.01) | 16 bps | (12) bps | - Period end net loans totaled **$6.7 billion**, down **1.0%** YoY and **0.5%** QoQ. Total loan closings were **$159.1 million** in 2Q25, up **26.3%** YoY but down **8.6%** QoQ. The loan pipeline decreased **44.8%** YoY and **14.4%** QoQ to **$181.0 million**[10](index=10&type=chunk)[21](index=21&type=chunk) - Average CDs totaled **$2.5 billion**, up **1.4%** YoY, but down **4.6%** QoQ; approximately **$391.2 million** of retail CDs are due to mature at an average rate of **3.93%** in 3Q25[10](index=10&type=chunk)[21](index=21&type=chunk) - The Company paid a dividend of **$0.22** per share in 2Q25[21](index=21&type=chunk) [Corporate Information](index=8&type=section&id=Corporate%20Information) This section provides details on upcoming earnings calls, an overview of Flushing Financial Corporation, and the standard safe harbor statement regarding forward-looking information [Conference Call Information](index=8&type=section&id=Conference%20Call%20Information) This section provides details on the upcoming Third Quarter 2025 earnings release and conference call, as well as information for the Second Quarter 2025 conference call - Third Quarter 2025 financial results planned for release after market close on October 28, 2025, followed by a conference call on October 29, 2025, at 9:30 AM (ET)[24](index=24&type=chunk) - A conference call to discuss Second Quarter 2025 results and strategy was hosted on Friday, July 25, 2025, at 11:00 AM (ET)[28](index=28&type=chunk) [About Flushing Financial Corporation](index=8&type=section&id=About%20Flushing%20Financial%20Corporation) Flushing Financial Corporation is the holding company for Flushing Bank, an FDIC-insured commercial bank operating in New York, offering comprehensive financial services - Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank[25](index=25&type=chunk) - The Bank operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island, offering deposit, loan, equipment finance, and cash management services[25](index=25&type=chunk) - The Bank is uniquely different by rewarding customers with personalized attention and bankers who can communicate in the languages prevalent within multicultural markets[25](index=25&type=chunk) - As an Equal Housing Lender and leader in real estate lending, the Bank creates mortgage solutions for real estate owners and property managers[25](index=25&type=chunk) [Safe Harbor Statement](index=8&type=section&id=Safe%20Harbor%20Statement) This statement advises that the press release contains forward-looking statements, which are inherently subject to risks and uncertainties, and the company has no obligation to update them - Statements relating to plans, strategies, economic performance, and trends are forward-looking statements[27](index=27&type=chunk) - Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated[27](index=27&type=chunk) - The Company has no obligation to update these forward-looking statements[27](index=27&type=chunk) [Unaudited Financial Tables and Reconciliations](index=9&type=section&id=Unaudited%20Financial%20Tables%20and%20Reconciliations) This section provides detailed unaudited financial tables, including performance ratios, average balances, income statements, and reconciliations of GAAP to core metrics [Financial Highlights](index=9&type=section&id=FINANCIAL%20HIGHLIGHTS) This section provides a comprehensive overview of key performance ratios, average balances, credit quality metrics, and capital ratios for various periods Selected Performance Ratios (2Q25) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (%) | 0.64 | (0.43) | (2.17) | 0.39 | 0.24 | 0.10 | 0.21 | | Return on average equity (%) | 8.00 | (5.36) | (29.24) | 5.30 | 3.19 | 1.22 | 2.69 | | Yield on average interest-earning assets (2) (%) | 5.59 | 5.51 | 5.60 | 5.63 | 5.43 | 5.55 | 5.37 | | Cost of average interest-bearing liabilities (%) | 3.58 | 3.50 | 3.75 | 4.10 | 3.95 | 3.54 | 3.89 | | Net interest margin (2) (%) | 2.54 | 2.51 | 2.39 | 2.10 | 2.05 | 2.52 | 2.06 | | Efficiency ratio (3) | 67.69 | 72.21 | 79.01 | 77.20 | 82.57 | 69.93 | 84.31 | Selected Balance Sheet Averages ($MM) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :-------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total loans, net | $6,678 | $6,672 | $6,780 | $6,737 | $6,748 | $6,675 | $6,776 | | Total deposits | $7,607 | $7,561 | $7,450 | $7,464 | $7,196 | $7,584 | $7,139 | | Stockholders' equity | $709,839 | $731,592 | $673,588 | $672,762 | $667,557 | $720,656 | $668,371 | Selected Capital Ratios (%) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tier 1 leverage capital | 8.31 | 8.12 | 8.04 | 7.91 | 8.18 | 8.31 | 8.18 | | Common equity Tier 1 risk based capital | 10.41 | 10.17 | 10.13 | 10.16 | 10.22 | 10.41 | 10.22 | | Total risk-based capital | 14.57 | 14.31 | 14.23 | 14.24 | 14.38 | 14.57 | 14.38 | | Tangible common equity to tangible assets | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 | 8.04 | 7.12 | [Consolidated Statements of Income (Loss)](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(LOSS)) This section presents the detailed income statement for the three and six months ended June 30, 2025, and comparative periods, showing interest income and expense, noninterest income and expense, and net income (loss) Consolidated Statements of Income (Loss) ($000s) | Metric | 2Q25 | 1Q25 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | | Interest and fees on loans | $95,005 | $93,032 | $92,728 | $188,037 | $185,687 | | Total interest and dividend income | $117,402 | $116,536 | $113,230 | $233,938 | $222,729 | | Total interest expense | $64,193 | $63,547 | $70,454 | $127,740 | $137,556 | | Net Interest Income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Provision for credit losses | $4,194 | $4,318 | $809 | $8,512 | $1,401 | | Total noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Total noninterest expense | $40,356 | $59,676 | $39,047 | $100,032 | $78,939 | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | $4,407 | $8,906 | | Diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Dividends per common share | $0.22 | $0.22 | $0.22 | $0.44 | $0.44 | [Consolidated Statements of Financial Condition](index=13&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20CONDITION) This section details the company's assets, liabilities, and stockholders' equity at various quarter-end dates, providing a snapshot of its financial position Consolidated Statements of Financial Condition ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total assets | $8,776,524 | $9,008,396 | $9,097,240 | | Net loans | $6,668,354 | $6,701,798 | $6,735,378 | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | | Borrowed funds | $600,171 | $421,542 | $1,316,565 | | Total liabilities | $8,070,147 | $8,305,545 | $8,431,918 | | Total stockholders' equity | $706,377 | $702,851 | $665,322 | [Average Balance Sheets](index=14&type=section&id=AVERAGE%20BALANCE%20SHEETS) This section presents average balances for interest-earning assets, total assets, interest-bearing liabilities, and total liabilities for the three and six months ended June 30, 2025, and comparative periods Average Balance Sheets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total loans, net | $6,678,494 | $6,671,922 | $6,748,140 | $6,675,226 | $6,776,128 | | Total interest-earning assets | $8,402,582 | $8,468,913 | $8,354,994 | $8,435,565 | $8,295,076 | | Total assets | $8,918,075 | $9,015,880 | $8,830,665 | $8,966,707 | $8,769,085 | | Total deposits | $7,607,080 | $7,560,956 | $7,195,940 | $7,584,144 | $7,138,720 | | Total interest-bearing liabilities | $7,176,399 | $7,261,100 | $7,140,068 | $7,218,514 | $7,077,498 | | Equity | $709,839 | $731,592 | $667,557 | $720,656 | $668,371 | [Net Interest Income and Net Interest Margin](index=15&type=section&id=NET%20INTEREST%20INCOME%20AND%20NET%20INTEREST%20MARGIN) This section provides a detailed breakdown of interest income and expense, net interest income, and net interest margin, including tax-equivalent yields and costs for various asset and liability categories Net Interest Income and Margin (Tax Equivalent) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total interest-earning assets yield (%) | 5.59 | 5.51 | 5.43 | 5.55 | 5.37 | | Total interest-bearing liabilities cost (%) | 3.58 | 3.50 | 3.95 | 3.54 | 3.89 | | Net interest rate spread (tax equivalent) (%) | 2.01 | 2.01 | 1.48 | 2.01 | 1.48 | | Net interest margin (tax equivalent) (%) | 2.54 | 2.51 | 2.05 | 2.52 | 2.06 | [Deposit and Loan Composition](index=17&type=section&id=DEPOSIT%20and%20LOAN%20COMPOSITION) This section details the composition of deposits by type (noninterest-bearing, CDs, savings, money market, NOW accounts) and loans by category (multifamily, commercial real estate, one-to-four family, construction, SBA, commercial business) at various quarter-end dates Deposit Composition ($000s) | Deposit Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Noninterest bearing | $899,602 | $863,714 | $825,327 | 4.2% | 9.0% | | Certificate of deposit accounts | $2,452,624 | $2,592,026 | $2,435,894 | (5.4)% | 0.7% | | NOW accounts | $2,174,124 | $2,393,482 | $1,774,268 | (9.2)% | 22.5% | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | (5.6)% | 5.5% | Loan Composition ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Multifamily residential | $2,487,610 | $2,531,628 | $2,631,751 | (1.7)% | (5.5)% | | Commercial real estate | $1,987,523 | $1,953,710 | $1,894,509 | 1.7% | 4.9% | | Mortgage loans (Total) | $5,274,385 | $5,319,866 | $5,371,647 | (0.9)% | (1.8)% | | Commercial Business loans (Total) | $1,423,265 | $1,411,310 | $1,403,668 | 0.8% | 1.4% | | Gross loans | $6,697,650 | $6,731,176 | $6,775,315 | (0.5)% | (1.1)% | [Loan Closings and Rates](index=18&type=section&id=LOAN%20CLOSINGS%20and%20RATES) This section provides data on loan closings by type and the weighted average rates on new loan originations for recent quarters, offering insights into lending activity and pricing trends Loan Closings ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :-------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Mortgage loans | $71,998 | $84,422 | $57,802 | $156,420 | $134,831 | | Commercial Business loans | $87,178 | $89,654 | $68,162 | $176,832 | $121,117 | | Total Closings | $159,176 | $174,076 | $125,964 | $333,252 | $255,948 | Weighted Average Rate on Loan Closings (%) | Loan type | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Mortgage loans | 6.87 | 6.68 | 7.58 | | Commercial Business loans | 7.25 | 7.28 | 7.94 | | Total loans | 7.08 | 6.99 | 7.77 | [Asset Quality](index=19&type=section&id=ASSET%20QUALITY) This section details the allowance for credit losses, net loan charge-offs (recoveries), and nonperforming assets, including nonaccrual loans and nonperforming asset ratios, providing insight into the health of the loan portfolio Allowance for Credit Losses ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Allowance for credit losses - loans (Ending balance) | $41,247 | $40,037 | $41,648 | $41,247 | $41,648 | | Total net loan charge-offs (recoveries) | $2,549 | $4,427 | ($92) | $6,976 | ($88) | | Provision (benefit) for loan losses | $3,759 | $4,312 | $804 | $8,071 | $1,399 | | Allowance for credit losses - loans to gross loans (%) | 0.62 | 0.59 | 0.61 | 0.62 | 0.61 | | Net loan charge-offs (recoveries) to average loans (%) | 0.15 | 0.27 | (0.01) | 0.21 | — | Nonperforming Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total Nonaccrual loans | $49,247 | $46,263 | $34,540 | | Total Nonperforming Assets | $66,125 | $64,263 | $55,832 | | Nonperforming Assets to Total Assets (%) | 0.75 | 0.71 | 0.61 | | Allowance for Credit Losses to NPLs (%) | 83.8 | 86.5 | 120.6 | [Reconciliation of GAAP Earnings (Loss) and Core Earnings](index=20&type=section&id=RECONCILIATION%20OF%20GAAP%20EARNINGS%20(LOSS)%20and%20CORE%20EARNINGS) This section provides a reconciliation of GAAP income (loss) to core income, adjusting for non-cash fair value adjustments, goodwill impairment, and other non-recurring items, and presents core diluted EPS, ROAA, and ROAE to offer an alternative view of the company's performance - Core earnings are non-GAAP measures used 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 competitors[51](index=51&type=chunk) GAAP to Core Earnings Reconciliation ($000s, except EPS) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP income (loss) before income taxes | $18,936 | ($5,931) | $7,136 | $13,005 | $12,133 | | Impairment of goodwill | — | $17,636 | — | $17,636 | — | | Core income before taxes | $14,845 | $11,827 | $7,311 | $26,672 | $13,160 | | Core net income | $11,162 | $7,931 | $5,456 | $19,093 | $9,768 | | GAAP diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Core diluted earnings per common share | $0.32 | $0.23 | $0.18 | $0.55 | $0.33 | | Core return on average assets (%) | 0.50 | 0.35 | 0.25 | 0.43 | 0.22 | | Core return on average equity (%) | 6.29 | 4.34 | 3.27 | 5.30 | 2.92 | [Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue](index=23&type=section&id=RECONCILIATION%20OF%20GAAP%20REVENUE%20and%20PRE-PROVISION%20PRE-TAX%20NET%20REVENUE) This section reconciles GAAP net interest income and noninterest income to core figures, and then calculates GAAP and Core Pre-provision Pre-tax Net Revenue (PPPTNR), providing a measure of underlying profitability before credit losses and taxes GAAP to Core Pre-Provision Pre-Tax Net Revenue ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP Net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core Net interest income | $52,888 | $52,681 | $42,417 | $105,569 | $84,730 | | GAAP Noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Core Noninterest income | $6,031 | $5,420 | $4,159 | $11,451 | $8,077 | | GAAP Noninterest expense | ($40,356) | ($59,676) | ($39,047) | ($100,032) | ($78,939) | | Core Noninterest expense | ($39,880) | ($41,956) | ($38,456) | ($81,836) | ($78,246) | | GAAP Pre-provision pre-tax net (loss) revenue | $23,130 | ($1,613) | $7,945 | $21,517 | $13,534 | | Core Pre-provision pre-tax net revenue | $19,039 | $16,145 | $8,120 | $35,184 | $14,561 | | Efficiency Ratio (%) | 67.7 | 72.2 | 82.6 | 69.9 | 84.3 | [Reconciliation of GAAP Net Interest Income and Net Interest Margin to Core Net Interest Income](index=24&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INTEREST%20INCOME%20and%20NET%20INTEREST%20MARGIN%20to%20CORE%20NET%20INTEREST%20INCOME) This section reconciles GAAP net interest income and net interest margin to their core, fully taxable equivalent (FTE) counterparts, adjusting for fair value adjustments, purchase accounting, and episodic items to provide a clearer view of recurring interest income performance GAAP to Core Net Interest Income and Margin FTE ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core net interest income FTE | $52,984 | $52,777 | $42,515 | $105,761 | $84,928 | | Core net interest margin FTE (%) | 2.52 | 2.49 | 2.03 | 2.51 | 2.05 | | Net interest margin FTE excluding episodic items (%) | 2.48 | 2.48 | 2.02 | 2.48 | 2.02 | | Core yield on total loans (%) | 5.65 | 5.52 | 5.47 | 5.59 | 5.46 | [Calculation of Tangible Stockholders' Common Equity to Tangible Assets](index=25&type=section&id=CALCULATION%20OF%20TANGIBLE%20STOCKHOLDERS'%20COMMON%20EQUITY%20to%20TANGIBLE%20ASSETS) This section provides a reconciliation of total equity and total assets to tangible stockholders' common equity and tangible assets, respectively, by deducting goodwill and core deposit intangibles, and presents the tangible common equity to tangible assets ratio, a key measure of capital adequacy - 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[51](index=51&type=chunk) Tangible Stockholders' Common Equity to Tangible Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total Equity | $706,377 | $702,851 | $724,539 | $666,891 | $665,322 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Stockholders' Common Equity | $705,437 | $701,822 | $705,780 | $648,035 | $646,364 | | Total Assets | $8,776,524 | $9,008,396 | $9,038,972 | $9,280,886 | $9,097,240 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Assets | $8,775,584 | $9,007,367 | $9,020,213 | $9,262,030 | $9,078,282 | | Tangible Stockholders' Common Equity to Tangible Assets (%) | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 |

Core Viewpoint - Flushing Financial is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Flushing Financial's quarterly earnings is $0.29 per share, reflecting a year-over-year increase of +61.1% [3]. - Revenues are anticipated to reach $58.7 million, which is a 24.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.23% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Flushing Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.90% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Flushing Financial had an earnings surprise of +4.55%, reporting $0.23 per share against an expectation of $0.22 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Flushing Financial does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, suggesting investors should consider other factors before making decisions [17].

Group 1 - The stock of Flushing Financial Corporation (FFIC) is experiencing significant attention due to high implied volatility in the options market, particularly for the Aug 15, 2025 $5 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Flushing Financial's stock price, potentially due to an upcoming event [2] - Flushing Financial currently holds a Zacks Rank 4 (Sell) in the Financial - Savings and Loan industry, which is in the bottom 40% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward [3] Group 2 - The high implied volatility surrounding Flushing Financial may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $9.796 million compared to a net income of $3.684 million for the same period in 2024[10]. - The company’s comprehensive net income (loss) for the period was $(14.234) million, compared to $6.519 million in the prior year[13]. - The Company reported net income of $0.5 million for the three months ended March 31, 2025, compared to $1.0 million for the same period in 2024, reflecting a decrease of 50%[86]. - Income (loss) before income taxes was ($5.9) million for the three months ended March 31, 2025, a decrease of $10.9 million, or 218.7%, from $5.0 million for the same period in 2024[175]. - Diluted earnings per share for the three months ended March 31, 2025, were $(0.29), a decrease of $0.41, or 341.7%, from $0.12 for the same period in 2024[167]. Income and Expenses - Total interest and dividend income increased to $116.536 million, up from $109.499 million year-over-year, reflecting a growth of approximately 6.3%[10]. - Net interest income after provision for credit losses was $48.671 million, compared to $41.805 million in the prior year, representing an increase of about 16.5%[10]. - Non-interest expense rose to $59.676 million, up from $39.892 million, marking an increase of approximately 49.7% year-over-year[10]. - The total provision for income taxes was $3.865 million, compared to $1.313 million in the previous year, indicating an increase of approximately 194%[10]. - Non-interest income increased to $5.074 million from $3.084 million, reflecting a growth of approximately 64.6% year-over-year[10]. Asset and Liability Management - Cash and cash equivalents at the end of the period totaled $271.912 million, an increase from $210.723 million at the end of the same period last year[20]. - The company experienced a net increase in interest-bearing deposits of $475.194 million, compared to an increase of $437.530 million in the previous year[20]. - Total interest-earning assets increased to $8.47 billion for the three months ended March 31, 2025, compared to $8.24 billion for the same period in 2024[206]. - Total interest-bearing liabilities amounted to $7.26 billion as of March 31, 2025, with a total interest expense of $63.5 million[206]. - The ratio of interest-earning assets to interest-bearing liabilities remained stable at 1.17x for both periods[206]. Credit Quality and Loan Performance - The total loans outstanding as of March 31, 2025, amounted to $6.742 billion[58]. - The total amount of non-accrual loans at amortized cost was $58.352 million as of March 31, 2025[54]. - The company had a total of $40.163 million in modified loans for borrowers experiencing financial difficulty as of March 31, 2025[51]. - The total amount of loans across all categories was $6,742,067 thousand, highlighting the company's extensive loan portfolio[63]. - The allowance for credit losses to gross loans stood at 0.59% at March 31, 2025, with non-performing assets at 0.71% of total assets[163]. Securities and Investments - As of March 31, 2025, the total amortized cost of held-to-maturity securities is $51,509,000, with a fair value of $44,670,000, reflecting a gross unrealized loss of $6,839,000[30]. - The total amortized cost of available-for-sale securities is $1,454,886,000, with a fair value of $1,450,144,000, resulting in a gross unrealized loss of $4,742,000[34]. - The company did not sell any securities during the three months ended March 31, 2025, and 2024, maintaining a stable portfolio[43]. - The company believes that unrealized losses on available-for-sale securities are not credit-related and no allowance for credit loss was recorded[37]. - The allowance for credit losses for available-for-sale securities remains unchanged at $2,627,000 as of March 31, 2025[42]. Capital and Regulatory Compliance - The total risk-based capital level is $896,836 thousand, representing 13.35% of assets as of March 31, 2025, compared to 13.11% at December 31, 2024[141]. - The Company’s Tier I (leverage) capital is $856,082 thousand, which is 9.56% of assets as of March 31, 2025, an increase from 9.31% at December 31, 2024[141]. - The Company continues to exceed all regulatory capital requirements, maintaining a Common Equity Tier I risk-based capital of 12.74% as of March 31, 2025[143]. - The cumulative amount of basis adjustments for the portfolio layer method at March 31, 2025, is $0.2 million, down from $2.0 million at December 31, 2024[132]. - The Company maintained portfolio layer hedges on a closed portfolio of loans with a notional amount of $600.0 million as of March 31, 2025, up from $500.0 million at December 31, 2024[123].