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]

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 ...

Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $1.61 compared to core earnings per share of $0.14, with a balance sheet restructuring incurring a $76,000,000 pre-tax loss or $1.74 per share after tax [7] - GAAP net interest margin (NIM) increased by 29 basis points to 2.39%, while core NIM rose by 18 basis points to 2.25% in Q4 [8][9] - Average deposits increased by 8% year over year and were flat quarter over quarter, with the loan to deposit ratio improving to 94% from 101% a year ago [10] Business Line Data and Key Metrics Changes - The company experienced a sequential expansion in NIM as funding costs declined by 34 basis points, while interest-earning assets decreased only 3 basis points [7] - Average non-interest bearing deposits increased quarter over quarter, contributing positively to NIM [10] - The total CDs amounted to $2,700,000,000, representing 37% of total deposits, with a significant portion maturing in Q1 [11] Market Data and Key Metrics Changes - The company has approximately $3,000,000,000 of deposits and $749,000,000 of loans in Asian markets, which account for about a third of its branches [28] - The company holds only a 3% market share in a $40,000,000,000 market, indicating substantial growth potential in Asian markets [28] Company Strategy and Development Direction - The company aims to increase NIM and reduce volatility, focusing on improving non-interest bearing deposits and managing interest rate risk [6][9] - Plans for branch expansion include opening two new branches in Asian markets during 2025 [44] - The company is focused on shifting the loan mix towards more relationship-based business in the commercial real estate (CRE) sector [70][72] Management's Comments on Operating Environment and Future Outlook - The operating environment is improving, with expectations for NIM expansion due to a positive slope in the yield curve [30][34] - The company anticipates slight loan growth and stable assets, with a focus on improving the mix of interest-earning assets and liabilities [32][34] - Management expressed confidence in the low risk credit profile, expecting minimal loss content within the loan portfolio [19][21] Other Important Information - The tangible common equity ratio improved quarter over quarter to 7.82%, reflecting a strong capital position [25][26] - Non-interest expense is expected to increase by approximately 5% to 8% in 2025, driven by investments in the business [33][60] Q&A Session Summary Question: What is left to be completed in the Q1 regarding the balance sheet restructuring? - The loan sales have not been completed yet, but they are expected to occur very soon within Q1 [40][41] Question: How many branches are planned for expansion and what will be the cost implications? - Two branches are planned, with an expected increase in non-interest expenses between 5% to 8% [44][45] Question: Is there a significant Durbin impact expected as the company crosses the $10,000,000,000 threshold? - There is not a significant Durbin impact anticipated, as most costs are already accounted for in the expense base [46][47] Question: What is the expected NIM by the end of the year? - The expected NIM is closer to the $230,000,000 to $240,000,000 range, which is considered a reasonable target [50] Question: How does the company plan to manage interest rate sensitivity going forward? - The company believes it can manage either upward or downward movements in interest rates without significant issues [57] Question: What are the expected loan sales for the upcoming quarter from the SBA team? - The SBA business is expected to contribute significantly in 2025, with a couple of loans anticipated to be sold in Q1 [58] Question: What were the types of charge-offs within the C and I portfolio? - The largest charge-off was related to one loan that had been fully reserved in prior quarters, with additional market color leading to a slight impairment charge [59]

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].