Flushing Financial : Reports 4Q24 and 2024 GAAP Loss Per Share of $(1.61) and $(1.05), and Core EPS of $0.14 and $0.73, Respectively; Actions Taken to Improve Profitability and to Strengthen the Balance Sheet

Published: 2025-01-28 17:30:11 ET FFIC

Flushing Financial Corporation Reports 4Q24 and 2024 GAAP Loss Per Share of $(1.61) and $(1.05), and Core EPS of $0.14 and $0.73, Respectively; Actions Taken to Improve Profitability and to Strengthen the Balance Sheet

Jan 28, 2025 5:15 PM

"Our Company successfully executed meaningful actions in 2024 to position it for enhanced earnings in 2025. First, we raised $70 million of capital to reposition the balance sheet, completed the restructuring of the investment portfolio, transferred loans to held for sale, and repositioned borrowings while reducing the cost. The overall result of this balance sheet restructuring is expected to be a significant improvement performance with 10-15 bps of NIM expansion expected in 1Q25. This restructuring will further propel our baseline NIM expansion, which was 29 and 18 bps, respectively, for GAAP and Core, in 4Q24. Second, our actions to move the balance sheet to a more neutral position have helped position the Company for the current environment. The recent steepening of the yield curve should further aid NIM improvement over time. Lastly, after making progress on our four areas of focus in 2024, we are shifting the priorities in 2025 to 1) Preserving Strong Liquidity and Capital, 2) Maintaining Credit Discipline, and 3) Improving Profitability. While progress occurred in 2024, by shifting our priorities in 2025, we expect further improvement.

UNIONDALE, NY /ACCESS Newswire / January 28, 2025 / Restructuring Largely Complete. The Company reported fourth quarter and full year 2024 GAAP loss per share of $(1.61) and $(1.05), respectively. Core EPS for the fourth quarter and full year 2024 totaled $0.14 and $0.73, respectively. During the fourth quarter, the Company took several actions to improve profitability and strengthen the balance sheet, including raising $70 million of common capital, selling approximately $445 million of securities yielding 1.98%, purchasing $384 million of securities yielding 5.67%, terminating $200 million of a related investment securities swap for a $3 million pre-tax gain, prepaying $251 million of FHLB advances at a weighted average rate of 4.82%, replacing this funding at a rate of 4.54%, and moving $74 million of loans with a weighted average coupon of 3.91% to held for sale incurring an 100% interest rate mark of $3.8 million pre- tax. The net result of these transactions and other adjustments totaled $76.0 million (pre-tax) or $(1.74) per share, net of tax in 4Q24 and $(1.77) per share in 2024.

Asset Quality Stable, and Capital Improves. Asset quality metrics were stable as NPAs were down 6.5% QoQ, but criticized and classified loans totaled 107 bps of gross loans. Net charge-offs to average loans were 28 bps in 4Q24 primarily relating to loans that were already fully reserved.

TCE/TA 1 increased to 7.82% at December 31, 2024, up 82 bps QoQ.

Key Financial Metrics 2

4Q24

3Q24

2Q24

1Q24

4Q23

2024

2023

GAAP:

(Loss) Earnings $ (1.61 )

$ 0.30

$ 0.18

$ 0.12

0.27

$ (1.05 ) $

0.96

per Share

(2.17 )

0.39

0.24

0.17

0.38

(0.35 )

0.34

ROAA (%)

(29.24 )

5.30

3.19

2.20

4.84

(4.67 )

4.25

ROAE (%)

2.39

2.10

2.05

2.06

2.29

2.15

2.24

NIM FTE 3 (%)

Core:

EPS

0.14

0.26

0.18

0.14

0.25

0.73

0.83

ROAA (%)

0.19

0.34

0.25

0.20

0.35

0.24

0.29

ROAE (%)

2.54

4.59

3.27

2.58

4.51

3.25

3.69

Core NIM FTE

2.25

2.07

2.03

2.06

2.31

2.10

2.21

(%)

Credit Quality:

NPAs/Loans &

0.76

0.81

0.82

0.68

0.67

0.76

0.67

OREO (%)

ACLs/Loans (%)

0.60

0.59

0.61

0.60

0.58

0.60

0.58

ACLs/NPLs (%)

120.51

117.75

120.58

164.13

159.55

120.51

159.55

NCOs/Avg

0.28

0.18

(0.01 )

0.11

0.16

Loans (%)

Balance Sheet:

Avg Loans ($B)

6.8

6.7

6.8

6.9

6.8

Avg Dep ($B)

7.4

7.5

7.2

7.1

6.9

7.3

6.9

Book Value/

21.53

22.94

22.89

23.04

23.21

21.53

23.21

Tangible BV/

$ 20.97

$ 22.29

$ 22.24

$ 22.39

$ 22.54

$ 20.97

$ 22.54

TCE/TA (%)

7.82

7.00

7.12

7.40

7.64

7.82

7.64

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.

1 Tangible Common Equity ("TCE")/Total Assets ("TA"). 2 See "Reconciliation of GAAP (Loss) Earnings and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin." 3 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").

4Q24 Highlights

Increase NIM

and Reduce

Volatility

Maintain

Credit

Discipline

Preserve

Strong

Liquidity and

Capital

Bend the

Expense

Curve

Areas of Focus

Income Statement Highlights

YoY QoQ

($000s, except EPS)

Net Interest Income

Provision for Credit Losses

Noninterest Income (Loss)

Noninterest Expense

(Loss) Income Before Income Taxes Provision (Benefit) for Income Taxes

Net (Loss)

Income

Diluted (Loss) Earnings per Share

Avg. Diluted Shares (000s)

Core Net

Income 1

Core EPS 1

4Q24

3Q24

2Q24

1Q24

4Q23

Change

51,235

45,603

42,776

42,397

46,085

11.2 %

12.4 %

6,440

1,727

809

592

998

545.3

272.9

(71,022 )

6,277

4,216

3,084

7,402

(1,059.5 )

(1,231.5 )

45,630

38,696

39,047

39,892

40,735

12.0

17.9

(71,857 )

11,457

7,136

4,997

11,754

(711.3 )

(727.2 )

(22,612 )

2,551

1,814

1,313

3,655

(718.7 )

(986.4 )

(49,245 )

8,906

5,322

3,684

8,099

(708.0 )

(652.9 )

(1.61 )

0.30

0.18

0.12

0.27

(696.3 )

(636.7 )

30,519

29,742

29,789

29,742

29,650

2.9

2.6

4,209

7,723

5,456

4,312

7,546

(44.2 )

(45.5 )

0.14

0.26

0.18

0.14

0.25

(44.0 )

(46.2 )

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income increased YoY and QoQ.

bps to NIM) in 2Q24, $1.0 million (5 bps to NIM) in 1Q24, and $3.0 million (15 bps to NIM) in 4Q23

The provision for credit losses increased YoY and QoQ.

Noninterest income (loss) decreased YoY and QoQ.

Noninterest expense increased YoY and QoQ.

Provision (benefit) for income taxes was $(22.6) million in 4Q24 compared to $3.7 million in 4Q23 and $2.6 million in 3Q24.

Balance Sheet, Credit Quality, and Capital Highlights

YoY

QoQ

4Q24

3Q24

2Q24

1Q24

4Q23

Change

Averages ($MM)

Loans

6,780

6,737

6,748

6,804

6,868

(1.3 )%

0.6 %

Total Deposits

7,450

7,464

7,196

7,081

6,884

8.2

(0.2 )

Credit Quality

($000s)

Nonperforming

$ 33,318

34,261

34,540

24,829

25,172

32.4 %

(2.8 )%

Loans

Nonperforming

51,318

54,888

55,832

46,254

46,153

11.2

(6.5 )

Assets

Criticized and

72,207

68,338

76,485

59,021

76,719

(5.9 )

5.7

Classified Loans

Criticized and

90,207

88,965

97,777

80,446

97,700

(7.7 )

1.4

Classified Assets

Allowance for Credit

0.60

0.59

0.61

0.60

0.58

2 bps

1 bp

Losses/Loans (%)

Capital

Book Value/Share

21.53

22.94

22.89

23.04

23.21

(7.2 )%

(6.1 )%

Tangible Book Value/

20.97

22.29

22.24

22.39

22.54

(7.0 )

(5.9 )

Tang. Common

Equity/Tang. Assets

7.82

7.00

7.12

7.40

7.64

18 bps

82 bps

(%)

Leverage Ratio (%)

8.04

7.91

8.18

8.32

8.47

(43 )

Average loans decreased YoY but increased QoQ.

Average total deposits increased YoY but declined QoQ.

Credit Quality: Nonperforming loans increased YoY but decreased QoQ.

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 7.2% and 7.0% YoY to $21.53 and $20.97, respectively.

Conference Call Information

Conference Call Information:

First Quarter 2025 Earnings Release Date:

The Company plans to release First Quarter 2025 financial results after the market close on April 29, 2025, followed by a conference call at 9:30 AM (ET) on April 30, 2025.

A detailed announcement will be issued prior to the first quarter's close confirming the date and the time of the earning release.

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State -chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at FlushingBank.com. Flushing Financial Corporation's earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-lookingstatements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-lookinginformation is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-Kfor the fiscal year ended December 31, 2023 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward- looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "goals", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-lookingstatements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-lookingstatements.

#FF - Statistical Tables Follow

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

At or for the three months ended

At or for the y

December

September

December

31,

30,

June 30,

March 31,

31,

(Dollars in

thousands,

except per

2024

2023

2024

share data)

Performance

Ratios(1)

Return on

)

(2.17 %

0.39 %

0.24 %

0.17 %

0.38 %

(0.35 %

average assets

Return on

(29.24 )

5.30

3.19

2.20

4.84

(4.67 )

average equity

Yield on

average

interest-

earning assets

5.60

5.63

5.43

5.32

5.39

5.50

(2)

Cost of

average

interest-

bearing

3.75

4.10

3.95

3.83

3.68

3.91

liabilities

Cost of funds

3.35

3.69

3.54

3.42

3.26

3.50

Net interest

rate spread

during period

1.85

1.53

1.48

1.49

1.71

1.59

(2)

Net interest

2.39

2.10

2.05

2.06

2.29

2.15

margin (2)

Noninterest

expense to

2.01

1.68

1.77

1.83

1.90

1.82

average assets

Efficiency

79.01

77.20

82.57

86.07

76.69

81.04

ratio (3)

Average

interest-

earning assets

to average

1.17 X

1.16

1.17

1.17 X

1.19

1.17 X

interest-

Disclaimer

Flushing Financial Corporation published this content on January 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 28, 2025 at 22:29:18.917.