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Flushing Financial Q1 2025 Earnings Report
Flushing Financial Corporation reported a net loss in Q1 2025 due to a goodwill impairment charge, despite improvements in net interest income and margin.
Key Takeaways
Flushing Financial Corporation reported a net loss of $9.796 million in the first quarter of 2025, primarily due to a non-cash goodwill impairment charge of $17.6 million. Despite the loss, the company saw an expansion in net interest income and margin, with GAAP NIM increasing by 12 basis points QoQ to 2.51% and Core NIM by 24 basis points QoQ to 2.49%. Average deposits grew by 1.5% QoQ, and liquidity remained strong.
GAAP Loss Per Share was $(0.29), while Core EPS was $0.23, with the difference primarily attributed to a goodwill impairment charge.
Net Interest Margin (NIM) expanded by 12 bps on a GAAP basis and 24 bps on a Core basis QoQ, driven by a decline in the cost of funds.
Average deposits increased by 1.5% QoQ to $7.6 billion, and period-end noninterest bearing deposits grew by 3.2% QoQ.
A non-cash goodwill impairment charge of $17.6 million was recorded, which had no impact on regulatory capital ratios or liquidity position.
Flushing Financial
Flushing Financial
Flushing Financial Revenue by Segment
Revenue by Segment
Loans held for sale Revenue
CapyFin.comMortgage loans, net Revenue
CapyFin.comCommercial Business loans, net Revenue
CapyFin.comTaxable securities Revenue
CapyFin.comTax-exempt securities Revenue
CapyFin.comInterest-earning deposits and federal funds sold Revenue
CapyFin.com Forward Guidance
The company remains focused on improving profitability, maintaining credit discipline, and preserving strong liquidity and capital to navigate the current economic environment and build long-term value.
Positive Outlook
- Continued focus on expanding net interest margin through proactive management of market conditions.
- Commitment to maintaining strong liquidity with ample undrawn lines and resources.
- Emphasis on preserving capital adequacy, as evidenced by a solid TCE/TA ratio.
- Strategic focus on managing credit risk effectively through strong underwriting and low loan-to-value ratios.
- Continued efforts to build long-term value for shareholders, customers, and communities.
Challenges Ahead
- Ongoing challenges from shifting economic conditions and an inverted yield curve.
- Increased economic uncertainty impacting the financial environment.
- Softening asset quality metrics requiring careful management of credit risk.
- Potential for further non-cash accounting adjustments, though goodwill impairment is now complete.
- Need to navigate competitive market conditions while pursuing growth and profitability.