Flushing Financial (US:FFIC)2025-04-29 21:05Financial 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].