Flushing Financial (FFIC) - 2024 Q4 - Annual Results

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$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$7,178,933,000 in Q4 2024 from $7,572,395,000 in Q3 2024, a decrease of 5.2$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$225.2 million in 4Q24, up from $217.1 million in 3Q24 [22]. - The loan pipeline increased by 21.9$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].