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].

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]

Financial Highlights - GAAP NIM increased 12 bps QoQ to 2.51%[7] - Core NIM expands 24 bps QoQ to 2.49%[7] - Average total deposits increased 6.8% YoY and 1.5% QoQ to $7.6 billion[7] - Liquidity remains strong with $4.0 billion of undrawn lines and resources at quarter end[6] - Tangible common equity ratio of 7.79%, stable QoQ[5] Loan Portfolio & Credit Quality - Loan to deposit ratio was 87.2% in 1Q25 compared to 94.0% a year ago and 93.9% in the prior quarter[7] - Net charge-offs total 18 bps for the past twelve months[7] - NPAs to assets of 71 bps at 1Q25 compared to 53 bps YoY and 57 bps QoQ[7] - Asian Communities – Total Loans $737.8 million and Deposits $1.3 billion[44] - Over three years ended December 31, 2027, loan repricing interest income would cumulatively increase by $50 million[19] Outlook - 2025 core noninterest expense expected to increase 5-8% from the 2024 base of $159.6 million[51]