Flushing Financial Reports $9.8 Million Net Loss in First Quarter of 2025

Flushing Financial Corporation reported a net loss of $9.8 million, or $0.29 per diluted share, for the first quarter of 2025, a significant decline from the net income of $3.7 million, or $0.12 per diluted share, recorded in the same period last year. This downturn was primarily attributed to a non-cash goodwill impairment charge of $17.6 million, which the company recognized due to economic uncertainties and a decline in its stock price. The return on average assets was negative 0.43%, compared to a positive 0.17% in the prior year, while the return on average equity fell to negative 5.36% from 2.20%.

Total interest and dividend income increased by 6.4% to $116.5 million, driven by a rise in the yield on interest-earning assets, which reached 5.51%. Interest expense decreased by 5.3% to $63.5 million, resulting in a net interest income of $53 million, up 25% from the previous year. The net interest margin improved to 2.51%, reflecting a 45 basis point increase from 2.06% in the prior year. The provision for credit losses rose to $4.3 million, compared to $0.6 million in the same quarter of 2024, primarily due to a commercial business loan that lost its primary tenant.

As of March 31, 2025, Flushing Financial's total assets stood at $9.01 billion, a slight decrease from $9.04 billion at the end of 2024. The company reported a decrease in loans held for investment, which totaled $6.7 billion, down from $6.7 billion at the end of the previous year. The loan originations for the quarter were $174.1 million, a 33.9% increase from $130 million in the same period last year. Non-performing assets increased to $64.3 million, representing 0.71% of total assets, up from 0.57% at the end of 2024.

Flushing Financial's total liabilities decreased marginally to $8.31 billion, with deposits rising to $7.63 billion, a 7.1% increase driven by growth in NOW accounts. The company maintained a strong capital position, with total stockholders' equity at $702.9 million, down from $724.5 million at the end of 2024. The company continues to be categorized as "well-capitalized" under regulatory standards, with a common equity tier I risk-based capital ratio of 10.17% as of March 31, 2025.

Looking ahead, Flushing Financial remains focused on maintaining its conservative underwriting standards and managing its interest rate risk through a diversified portfolio of loans and securities. The company is also committed to enhancing its liquidity position, which has improved to $5.88 billion as of March 31, 2025, compared to $5.65 billion at the end of 2024. The management anticipates that ongoing economic conditions and interest rate fluctuations will continue to influence its financial performance in the upcoming quarters.