Flushing Financial (US:FFIC)2025-10-29 21:25Financial Performance - Flushing Financial reported GAAP and Core EPS of $0.30 and $0.35, respectively, compared to $0.30 and $0.26 a year ago[4]. - Net income for the three months ended September 30, 2025, was $10,447,000, compared to $14,203,000 in the previous quarter, showing a decrease of 26.0%[36]. - Core net income for the three months ended September 30, 2025, was $11,957,000, compared to $11,162,000 for the previous quarter, reflecting a 7.1% increase[56]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.30, unchanged from the previous quarter[36]. - Core diluted earnings per common share increased to $0.35 for the three months ended September 30, 2025, up from $0.32 in the previous quarter, representing a 9.4% growth[56]. Interest Income and Margin - The net interest margin (NIM) expanded by 10 basis points quarter-over-quarter to 2.64% for GAAP and 2.62% for Core, driven by asset repricing and growth in noninterest-bearing deposits[4]. - Net Interest Margin FTE increased to 2.64%, up 54 bps YoY and 10 bps QoQ; yield on interest-earning assets rose to 5.70%[16]. - GAAP net interest income for Q3 2025 was $53,828,000, an increase from $51,235,000 in Q2 2025, and $45,603,000 in Q3 2024, representing a year-over-year growth of 18.8%[59]. - Core net interest income for Q3 2025 reached $53,543,000, compared to $48,133,000 in Q3 2024, reflecting a 11.3% increase year-over-year[59]. - The net interest margin for the three months ended September 30, 2025, was reported at 3.45%, compared to 3.50% for the previous quarter[42]. Deposits and Loans - Average noninterest-bearing deposits increased by 5.7% year-over-year, now representing 12.2% of total deposits, reflecting strong customer relationships[4]. - Average total deposits decreased by 1.6% year-over-year to $7.3 billion, while average noninterest-bearing deposits increased[11]. - Total deposits decreased to $7,345,547 from $7,607,080 in the previous quarter[31]. - The loan pipeline increased by 18.0% year-over-year and 91.0% quarter-over-quarter to $345.6 million, with a strong loan closing of $252.8 million, up 16.4% year-over-year[11]. - Total loan closings for the three months ended September 30, 2025, reached $252,760, a significant increase from $159,176 in the previous quarter[48]. Asset Quality - Nonperforming assets (NPAs) totaled $62.1 million, representing 70 basis points of assets, compared to $54.9 million a year ago[11]. - Net charge-offs were $1.1 million in 3Q25, down from $3.0 million in 3Q24, reflecting improved credit quality[13]. - Nonperforming loans increased to 67 bps of gross loans in 3Q25 from 50 bps in 3Q24, but decreased from 74 bps in 2Q25[22]. - The allowance for credit losses increased to $41,837, representing a 1.4% increase from the previous quarter and a 3.7% increase year-over-year[50]. - The total allowance for credit losses to nonperforming loans ratio improved to 93.3% as of September 30, 2025, compared to 83.8% in the previous quarter[51]. Expenses and Efficiency - Noninterest income decreased by 24.4% year-over-year to $4.7 million, reflecting challenges in generating noninterest revenue[12]. - Core noninterest expenses rose to $42.2 million in 3Q25, reflecting a 9.4% YoY increase[16]. - The efficiency ratio improved to 71.03% from 67.69% in the previous quarter[31]. - Noninterest expense for Q3 2025 was $43,365,000, an increase from $40,356,000 in Q2 2025, reflecting rising operational costs[59]. Capital and Equity - The tangible common equity ratio improved by 101 basis points year-over-year to 8.01%, indicating robust capital levels[4]. - Stockholders' equity reached $711,226 as of September 30, 2025, up from $706,377 as of June 30, 2025, indicating a growth of 0.12%[39]. - Tangible stockholders' common equity reached $710,372 thousand, reflecting a slight increase from $705,437 thousand in the prior quarter[65]. - The tangible stockholders' common equity to tangible assets ratio was 8.01%, slightly down from 8.04% in the previous quarter[65]. - The company continues to maintain a strong balance sheet with stable growth in equity and assets[65].