Flushing Financial (US:FFIC)2026-01-27 22:22Financial Performance - 4Q25 GAAP EPS was $0.12 and Core EPS was $0.32, compared to ($1.64) and $0.14 a year ago, reflecting a significant turnaround [4] - The net income for the three months ended December 31, 2025, was $4,026, a decrease from $10,447 in the previous quarter, showing a decline of 61.5% [41] - Core net income for the year ended December 31, 2025, was $41,968,000, up from $21,700,000 in 2024, representing a 93.6% increase [62] - Core diluted earnings per common share for Q4 2025 was $0.32, compared to $0.14 in Q4 2024, reflecting a 128.6% increase [62] Asset and Deposit Trends - Average total deposits increased by 0.6% YoY and 2.1% QoQ to $7.5 billion, with average noninterest-bearing deposits making up 12.9% of total average deposits [9] - Total deposits rose to $7,496,670 as of December 31, 2025, up from $7,345,547 in the previous quarter [37] - Total deposits decreased to $7,311,742 thousand from $7,415,528 thousand, a reduction of approximately 1.4% [44] - Average noninterest-bearing deposits increased by 12% YoY to 13% of total deposits, providing a stable, low-cost funding base [2] Loan Performance - Loan pipeline increased by 38.6% YoY but decreased by 20.3% QoQ to $275.5 million, with approximately 29.5% consisting of back-to-back swap loans [9] - Total loan closings were $261.4 million in 4Q25, compared to $225.2 million in 4Q24, representing a 16.5% increase YoY [23] - Average loans totaled $6.6 billion, down 1.4% YoY and 0.3% QoQ [23] - Total gross loans slightly decreased by 0.3% from the previous quarter and 1.5% from the previous year, amounting to $6,639,819,000 [51] Credit Quality - Provision for credit losses was $2.7 million in 4Q25, down from $6.4 million in 4Q24, while net charge-offs were $1.8 million compared to $4.7 million a year ago [9] - Nonperforming loans were 63 basis points of gross loans in 4Q25, up from 49 basis points in 4Q24 [23] - The allowance for credit losses increased to $42,802 thousand from $41,837 thousand, reflecting a rise of approximately 2.3% [44] - Nonperforming assets totaled $58,825,000, representing 0.68% of total assets as of December 31, 2025, compared to 0.57% a year earlier [57] Efficiency and Ratios - The efficiency ratio improved to 71.52% for the three months ended December 31, 2025, compared to 71.03% in the prior quarter [37] - The return on average equity for the three months ended December 31, 2025, was 2.24%, a decrease from 5.86% in the prior quarter [37] - The total risk-based capital ratio was 14.90% for the three months ended December 31, 2025, compared to 14.70% in the prior quarter [37] - Core return on average equity for Q4 2025 was 6.08%, compared to 3.25% in Q4 2024, showing significant improvement [62] Noninterest Income and Expenses - Noninterest income increased by 104.7% YoY to $3.3 million, but decreased by 30.4% QoQ [10] - Total noninterest expense for the year ended December 31, 2025, was $191,625, compared to $163,265 in 2024, reflecting an increase of 17.3% [41] - GAAP noninterest expense for Q4 2025 was $48,228,000, up from $43,365,000 in Q3 2025, with total expenses for the year at $191,625,000, compared to $163,265,000 in 2024 [67] Mergers and Future Outlook - The company is well-positioned for future growth due to the announced merger with OceanFirst Financial Corp., which is expected to create new opportunities [2] - The company is in the process of a merger with OceanFirst Financial Corp., which will affect future operations [23] Tax and Other Adjustments - The effective tax rate was 48.62% in 4Q25, reflecting non-deductible expenses associated with the pending merger with OceanFirst Financial Corp. [14] - The company reported a net gain from fair value adjustments of $1,985,000 in Q4 2025, compared to a loss of $1,656,000 in Q4 2024 [62] - The company experienced a net loss on the sale of securities of $47,000 in Q4 2025, compared to a loss of $661,000 in Q4 2024 [62]