Flushing Financial Corporation Reports Q3 2025 Results with 17.3% Net Income Increase

Flushing Financial Corporation reported its financial results for the third quarter of 2025, revealing a net income of $10.4 million, or $0.30 per diluted share, marking a 17.3% increase from the $8.9 million, or $0.30 per diluted share, recorded in the same period last year. The company's net interest income rose to $53.8 million, an 18% increase from $45.6 million in the prior year, driven by a net interest margin improvement of 54 basis points to 2.64%. This increase was attributed to a decrease in interest expense, which fell to $62.6 million from $76.9 million, reflecting a reduction in the average cost of interest-bearing liabilities.

In terms of overall financial performance, total assets decreased to $8.87 billion as of September 30, 2025, down from $9.04 billion at the end of 2024. This decline was primarily due to a reduction in net loans held for investment, which fell to $6.63 billion from $6.71 billion. The company maintained a conservative approach to lending, resulting in a decrease in the average balance of interest-earning assets. However, loan originations increased by 23.9% to $586 million for the nine months ended September 30, 2025, compared to $473 million in the same period of 2024.

Flushing Financial also reported a significant increase in its provision for credit losses, which rose to $10 million for the nine months ended September 30, 2025, compared to $3.1 million in the prior year. This increase was largely due to reserves on specific commercial real estate loans and net charge-offs. The allowance for credit losses stood at $41.8 million, representing 0.63% of gross loans, with non-performing assets increasing to 0.70% of total assets.

Operationally, the company saw a rise in non-interest income to $20.1 million for the nine months ended September 30, 2025, up from $13.6 million in the previous year, driven by higher gains on the sale of loans and improved income from bank-owned life insurance. However, non-interest expenses also increased to $143.4 million, primarily due to a non-cash goodwill impairment charge of $17.6 million. The company’s total stockholders' equity decreased to $711.2 million, reflecting dividend payments and a decline in other comprehensive income.

Looking ahead, Flushing Financial remains focused on maintaining its capital position, with a well-capitalized status under regulatory standards. The company continues to navigate market conditions while emphasizing disciplined underwriting and credit quality. The outlook remains cautiously optimistic, with management committed to leveraging its strengths in the competitive banking landscape.