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Jun 30, 2023
Flushing Financial Q2 2023 Earnings Report
Reported sequential improvements in key metrics and progressed on action plan to enhance business model resilience and drive profitability.
Key Takeaways
Flushing Financial Corporation reported a GAAP EPS of $0.29 and a core EPS of $0.26 for Q2 2023. The company delivered sequential improvements in key metrics and is progressing on its action plan to enhance business model resilience and drive profitability.
Experienced lowest level of NIM compression of the past four quarters.
Achieved QoQ improvements in loan pipeline and asset quality.
Increased deposit balances compared to past seasonal trends.
Available liquidity and capital ratios remained stable.
Flushing Financial
Flushing Financial
Forward Guidance
Flushing Financial will continue to focus on reducing interest rate risk, improving credit quality, liquidity, and the customer experience.
Positive Outlook
- Continued to take significant actions to position the Company’s balance sheet more towards interest rate risk neutral
- During 2Q23, the Company added $400 million of interest rate hedges and an additional $250 million of forward hedges that became effective
- Over 88% of the loan portfolio is collateralized by real estate with an average loan to value less than 36%
- The Company maintains ample liquidity with $3.7 billion of undrawn lines and resources
- Bensonhurst, our 27th branch, is expected to open in the second half of 2023, and will enhance our Asian community branch presence
Challenges Ahead
- Uncertainty in the operating environment
- Net interest margin FTE decreased 117 bps YoY and 9 bps QoQ to 2.18%
- Loan pipeline decreased 28.7% YoY
- Loan closings were $158.8 million down 68.5% YoY and 8.5% QoQ
- Approximately 33% of our branches are in Asian communities