Flushing Financial (FFIC) - 2024 Q4 - Annual Report

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].