Loading...
•
Mar 31, 2023
Flushing Financial Q1 2023 Earnings Report
GAAP EPS of $0.17 and Core EPS of $0.10 were reported. Deposits increased sequentially and year-over-year and liquidity remained strong.
Key Takeaways
Flushing Financial Corporation reported a challenging first quarter due to the inverted yield curve and rising rate environment. GAAP EPS was $0.17 and Core EPS was $0.10. The company is implementing an action plan to enhance business model resilience and drive profitability.
Deposits increased sequentially and year-over-year.
Liquidity remains strong.
Results were impacted by a $9.2 million business credit charge off.
The company is moving towards being interest rate neutral in the shorter term.
Forward Guidance
While rising rates temporarily compress the net interest margin, the NIM should begin to rebound, on a lagged basis, after the Fed stops raising rates.
Positive Outlook
- Move more towards being interest rate neutral in the shorter term.
- Increase our focus on risk adjusted returns and profitability.
- Emphasize our brand of customer service and deep relationships to continue to expand the client base and enhance loyalty.
- Further tighten expense controls.
- Review new and existing lending relationships to prepare for the next credit cycle.
Challenges Ahead
- The inverted yield curve and the rising rate environment led to first quarter results below our expectations.
- Rising rates temporarily compress our net interest margin.
- Results for the quarter were impacted by our decision to fully charge off a $9.2 million business credit placed on non-accrual in 2Q22.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...