4Q24 Earnings Conference Call January 29, 2025 Safe Harbor Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Presentation relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securi ...

Flushing Financial (FFIC) Q4 2024 Earnings Call January 29, 2025 09:30 AM ET Company Participants John Buran - President and CEOSusan Cullen - Senior EVP, Treasurer & CFOMark Fitzgibbon - Head of FSG ResearchSteve Moss - Director - Banking & Arlington Conference Call Participants Manuel Navas - Senior Research Analyst Operator Welcome to Flushing Financial Corporation's 4th Quarter and Full Year 2024 Operating Results Conference Call. Hosting the call today are John Buran, President and Chief Executive Offi ...

Core Insights - Flushing Financial reported revenue of $57.22 million for the quarter ended December 2024, marking a 7% increase year-over-year, and exceeding the Zacks Consensus Estimate of $50.35 million by 13.64% [1] - The company's EPS was $0.14, down from $0.25 in the same quarter last year, resulting in an EPS surprise of -33.33% against the consensus estimate of $0.21 [1] Financial Performance Metrics - Efficiency ratio stood at 79%, slightly better than the average estimate of 79.5% [4] - Net Interest Margin was reported at 2.4%, surpassing the average estimate of 2.1% [4] - Average Interest-Earning Assets totaled $8.59 billion, close to the average estimate of $8.63 billion [4] - Net Interest Income reached $51.24 million, significantly above the average estimate of $45.06 million [4] - Total Non-Interest Income was $5.98 million, exceeding the average estimate of $5.37 million [4] - Banking services fee income was $2.18 million, higher than the average estimate of $1.78 million [4] - Federal Home Loan Bank of New York stock dividends amounted to $0.75 million, compared to the average estimate of $0.64 million [4] - Bank owned life insurance income was $2.32 million, slightly above the average estimate of $2.26 million [4] Stock Performance - Flushing Financial's shares have returned +4.5% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

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

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

Core Viewpoint - Flushing Financial (FFIC) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimate Revisions - Analysts are optimistic about Flushing Financial's earnings prospects, leading to upward revisions in estimates, which are expected to positively impact the stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with Flushing Financial benefiting from this trend [2][3]. Current-Quarter Estimates - For the current quarter, Flushing Financial is projected to earn $0.21 per share, reflecting a year-over-year decline of 16% [4]. - The Zacks Consensus Estimate for the current quarter has increased by 17.07% over the last 30 days, with one estimate moving higher and no negative revisions [4]. Current-Year Estimates - The full-year earnings estimate stands at $0.78 per share, representing an 18.75% decrease from the previous year [5]. - Recent trends show two upward revisions for the current year, resulting in an 8.78% increase in the consensus estimate [5]. Zacks Rank - Flushing Financial has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance [6]. - Stocks with a Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500 [6]. Investment Outlook - The stock has risen 5.4% over the past four weeks due to strong estimate revisions, suggesting further upside potential [7]. - Investors may consider adding Flushing Financial to their portfolios based on its positive outlook [7].

Core Viewpoint - Flushing Financial (FFIC) has experienced a downtrend, losing 16.7% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which could lead to a bullish trend for the stock [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control over the price [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - There has been a significant upward trend in earnings estimate revisions for FFIC, with a 14.6% increase in the consensus EPS estimate for the current year over the last 30 days, indicating analysts expect better earnings than previously predicted [6][7]. - FFIC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [8]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the case for a trend reversal [8].

Group 1 - Flushing Financial (FFIC) has experienced a significant decline of 18.9% over the past four weeks, but it is now in oversold territory, indicating a potential for trend reversal [1] - The Relative Strength Index (RSI) for FFIC is currently at 28.68, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [4] - There is a strong consensus among Wall Street analysts that FFIC will report better earnings than previously predicted, with a 0.4% increase in the consensus EPS estimate over the last 30 days [5] Group 2 - FFIC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [5]

Core Viewpoint - Flushing Financial (FFIC) has experienced a significant decline of 21.2% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - FFIC's current RSI reading is 20.93, suggesting that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [3]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for FFIC have increased by 0.4% over the last 30 days, which typically correlates with price appreciation [6]. - FFIC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [6].

Flushing Financial, a New York-based commercial real estate lender, is seeking to raise $70 million to shore up its capital, CNBC has learned.The bank's CEO, John Buran, has told potential investors that he intends to sell low-yielding bonds and loans backed by commercial real estate, including multifamily buildings, moves that would generate a loss and necessitate the sale of fresh stock, people with knowledge of the deal told CNBC.Bankers working on the deal have yet to finalize pricing, but it will likel ...