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].

Group 1 - Following the last report on Flushing Financial Corporation (FFIC) in February 2025, the stock price has decreased by 10.56% [1] - The market reaction is attributed to concerns over tariffs impacting the company [1]

Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $0.29 and core earnings per share of $0.23, with a significant non-cash goodwill impairment charge of $17.6 million or $0.51 per share impacting GAAP results [6][32] - GAAP and core net interest margins (NIM) expanded to 2.51% and 2.49% respectively, marking increases of 12 and 24 basis points quarter over quarter [9][32] - Average deposits increased by 7% year over year and about 1% quarter over quarter, with the loan to deposit ratio improving to 87% from 94% a year ago [11][32] Business Line Data and Key Metrics Changes - The company is focused on improving profitability through net interest margin expansion, particularly from real estate loans that are contractually set to reprice higher [8][10] - Approximately $511 million of loans are due to reprice 171 basis points higher in 2025, with expectations of generating $9 million in interest income for 2025 and $13 million for 2026 from these repricings [14][15] Market Data and Key Metrics Changes - The Asian markets account for about one-third of the company's branches, with $1.3 billion in deposits and $738 million in loans, indicating a 3% market share in a $40 billion market, suggesting significant growth potential [25][26] - The spread between the five-year FHLB advance and the three-month SOFR rate turned negative during the quarter, which may impact future net interest margins [26][27] Company Strategy and Development Direction - The company aims to enhance profitability, maintain credit discipline, and preserve strong liquidity and capital, with a focus on contractual loan repricing to drive net interest margin expansion [6][32] - The company plans to expand its branch network in Asian markets, leveraging its multilingual staff and community engagement to capture growth opportunities [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economic outlook has become uncertain, the company remains focused on controllable factors and investing in business initiatives to drive future profitability [29][32] - The company expects stable assets for the year, with loan growth being market-dependent and a continued emphasis on improving the mix of interest-earning assets and liabilities [30][32] Other Important Information - The allowance for credit losses is stable at 59 basis points of loans, with criticized loans to total loans at a low 133 basis points, reflecting a conservative underwriting approach [19][32] - Non-interest income is expected to benefit from the closing of back-to-back swap loans and a BOLI exchange, while non-interest expenses are projected to increase by 5% to 8% in 2025 [31][32] Q&A Session Summary Question: Can you provide insight on the adjustments that offset seasonal expenses? - Management indicated that adjustments were made based on year-end accruals that needed to be trued up as the new year began [38] Question: What is the status of the multifamily uptick in non-performing loans (NPLs)? - Management explained that the multifamily loan issue involves a relationship with three loans at an LTV of about 43%, and they are working to resolve it [40][44] Question: How is the Asian community managing through the tariff situation? - Management stated that there is no direct exposure to trade financing and that the community is expected to remain stable despite potential price increases [60][61] Question: What is the outlook for the SBA pipeline and gain on sale income? - Management noted that they do not provide guidance on gain on sale income but mentioned activity in real estate-based lending with premiums on sale around 7% [67]

Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $0.29 and core earnings per share of $0.23, with a significant non-cash goodwill impairment charge of $17.6 million or $0.51 per share impacting GAAP results [6][5] - GAAP and core net interest margins (NIM) expanded to 2.51% and 2.49% respectively, marking increases of 12 basis points and 24 basis points quarter over quarter [9][33] - Average deposits increased by 7% year over year and about 1% quarter over quarter, with the loan to deposit ratio improving to 87% from 94% a year ago [11][33] Business Line Data and Key Metrics Changes - The company is focused on improving profitability through net interest margin expansion, particularly from real estate loans that are contractually set to reprice higher [8][10] - Approximately $511 million of loans are due to reprice 171 basis points higher in 2025, with expectations of generating an annualized $9 million of interest income in 2025 and $13 million in 2026 from these repricings [14][15] Market Data and Key Metrics Changes - The Asian markets account for about one-third of the company's branches, with $1.3 billion in deposits and $738 million in loans, indicating a 3% market share in a $40 billion market, suggesting significant growth potential [26][33] - The spread between the five-year FHLB advance and the three-month SOFR rate turned negative during the quarter, which may impact future net interest margins [27][33] Company Strategy and Development Direction - The company aims to enhance profitability, maintain credit discipline, and preserve strong liquidity and capital, with a focus on contractual loan repricing to drive net interest margin expansion [6][33] - The company plans to expand its branch network in Asian markets, indicating a strategic focus on growth in these areas [26][33] Management Comments on Operating Environment and Future Outlook - Management noted that while the economic outlook has become uncertain, they remain focused on controllable factors and investing in business initiatives to drive future profitability [30][33] - The company expects stable assets for the year, with loan growth being market-dependent, and emphasizes the importance of improving the mix of interest-earning assets and liabilities [31][33] Other Important Information - The allowance for credit losses is stable at 59 basis points of loans, with a low level of criticized loans at 133 basis points, reflecting the company's conservative underwriting standards [20][33] - Non-interest income is expected to benefit from the closing of back-to-back swap loans and a BOLI exchange, while non-interest expenses are projected to increase by 5% to 8% in 2025 [32][33] Q&A Session Summary Question: Can you provide color around the adjustments that offset the seasonal uptick in expenses? - Management indicated that adjustments were made based on year-end accruals that needed to be trued up as the new year began [38] Question: What were the reasons for the uptick in multifamily non-performing loans (NPLs)? - Management explained that the uptick was related to a specific borrower with three loans and a tenant moving out of an office building, with efforts underway to resolve these issues [40][41] Question: How is the Asian community managing through the tariff situation? - Management stated that there is no direct exposure to trade financing and that the community is tight-knit, expecting minimal impact on their real estate-focused portfolio [58][59] Question: What is the outlook for the SBA pipeline and gain on sale income potential? - Management noted that while they do not provide guidance on gain on sale income, they have seen activity in real estate-based lending with premiums on sale around 7% [66] Question: Should we expect some level of reserve build going forward? - Management indicated that given the uncertainty in the environment, they expect to see some reserve build once there is finalization over the tariffs [67]

1Q25 Earnings Conference Call April 30, 2025 Building Rewarding Relationships FlushingBank.com 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 Litigati ...

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]

Financial Performance - Flushing Financial Corporation reported a GAAP Loss Per Share of $(0.29) and Core EPS of $0.23, with a significant difference attributed to a non-cash goodwill impairment charge of $17.6 million[4]. - The net loss for the quarter was $9,796,000, an improvement from a net loss of $49,245,000 in the previous quarter[39]. - Basic loss per common share for the quarter was $(0.29), compared to $(1.64) in the previous quarter, indicating improved performance[39]. - Core net income for the same period was $7,931, an increase from $4,209 in the previous quarter, representing a 88.5% growth[59]. - The GAAP diluted loss per common share improved to $(0.29) from $(1.64) in the previous quarter[59]. Asset Quality - Nonperforming Assets (NPAs) totaled $64.3 million, representing 71 basis points of total assets, an increase from 57 basis points in the prior quarter[12]. - Nonperforming loans increased by 86.3% YoY and 38.9% QoQ, reaching $46.263 million[19]. - The allowance for credit losses to nonperforming loans ratio was 86.5%, indicating a decrease in coverage compared to 120.5% in the previous quarter[54]. - Total nonperforming loans (NPLs) increased to $46,263, up from $33,318 in the previous quarter, reflecting a growing concern in asset quality[54]. Deposits and Loans - Average total deposits increased by 6.8% YoY and 1.5% QoQ to $7.6 billion, with noninterest bearing deposits rising 5.9% YoY[4][12]. - Total deposits reached $7,718,218,000, marking a 7.5% increase compared to $7,178,933,000 in Q4 2024[48]. - Average loans decreased by 1.9% YoY and 1.6% QoQ to $6.7 billion, while loan closings increased by 33.9% YoY to $174.1 million[12]. - Total loan closings for the first quarter of 2025 were $174,076, a decrease of 22.7% compared to $225,164 in the previous quarter and an increase from $129,984 a year ago[51]. Interest Income and Margin - Net interest income after provision for credit losses increased to $48,671,000, up 8.3% from $44,795,000 in the previous quarter[39]. - Net interest margin (NIM) expanded by 12 basis points QoQ to 2.51% on a GAAP basis and by 24 basis points to 2.49% on a Core basis, driven by a decline in the cost of funds[4][12]. - The yield on total interest-earning assets was 5.51% for Q1 2025, slightly down from 5.60% in Q4 2024[46]. - The net interest margin (tax equivalent) improved to 2.51% in Q1 2025, compared to 2.39% in Q4 2024[46]. Equity and Capital - Tangible Common Equity to Tangible Assets ratio was 7.79% as of March 31, 2025, down 3 basis points QoQ but up 39 basis points YoY[12]. - Stockholders' equity increased to $731,592 thousand from $673,588 thousand, an increase of 8.61%[35]. - Total equity as of March 31, 2025, was $702,851,000, a decrease from $724,539,000 in December 2024, representing a decline of 2.96%[68]. Efficiency and Cost Management - Efficiency ratio improved to 72.21% from 79.01%, indicating enhanced operational efficiency[35]. - The efficiency ratio improved to 72.2% from 79.0% in the previous quarter, indicating better cost management[62]. - Total noninterest expense rose to $59,676,000, an increase of 30.8% from $45,630,000 in the previous quarter, primarily due to an impairment of goodwill of $17,636,000[39]. Tax and Provisions - The effective tax rate was (65.2)% in 1Q25, primarily due to the non-tax deductible goodwill impairment[24]. - The provision for credit losses was $4.3 million in 1Q25, compared to $0.6 million in 1Q24 and $6.4 million in 4Q24[12].

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].

Group 1 - The bottom line of Flushing Financial Corporation is expected to improve this year primarily due to net interest margin expansion [1] - Recent balance sheet restructuring is a contributing factor to the anticipated financial recovery [1] - The upcoming maturity of costly certificates of deposits will positively impact the company's financial performance [1] - Re-pricing strategies are also expected to enhance the company's profitability [1]