Flushing Financial Corporation Reports 166.9% Increase in Net Income for Q2 2025

Flushing Financial Corporation reported a significant increase in net income for the second quarter of 2025, achieving $14.2 million, or $0.41 per diluted share, compared to $5.3 million, or $0.18 per diluted share, in the same period last year. This represents a 166.9% increase in net income, driven by a rise in net interest income and non-interest income. For the six months ending June 30, 2025, net income was $4.4 million, a decrease from $9.0 million in the prior year, primarily due to a non-cash goodwill impairment charge of $17.6 million.

The company’s total interest and dividend income rose to $117.4 million for the quarter, up from $113.2 million a year earlier, largely due to a 16 basis point increase in the yield on interest-earning assets. Interest expense decreased by 8.9% to $64.2 million, contributing to a net interest income of $53.2 million, a 24.4% increase from the previous year. The net interest margin improved to 2.54%, up from 2.05% in the prior year, reflecting effective management of interest rate risk and asset-liability matching.

Flushing Financial's total assets decreased to $8.8 billion as of June 30, 2025, down 2.9% from the end of 2024. This decline was attributed to a reduction in available-for-sale securities and loans held for sale, which were down 7.1% and 100%, respectively. However, loans held for investment remained relatively stable, totaling $6.7 billion. The company reported an increase in non-performing assets, which rose to $66.1 million, or 0.75% of total assets, compared to 0.57% at the end of 2024.

Operationally, Flushing Financial has maintained a conservative approach to credit risk, with an allowance for credit losses (ACL) of $41.2 million, representing 0.62% of gross loans. The company’s non-performing loans to gross loans ratio was 0.74% at the end of the quarter. The bank continues to focus on disciplined underwriting standards, with a loan-to-value ratio averaging less than 35% for its real estate collateralized loans.

Looking ahead, Flushing Financial remains well-capitalized, exceeding all regulatory capital requirements, and is focused on leveraging its strong asset base to drive future growth. The company is also actively managing its interest rate risk through a portfolio of derivatives, which totaled a notional value of $2.6 billion as of June 30, 2025. The management anticipates that ongoing economic conditions and interest rate fluctuations will continue to influence its financial performance in the coming quarters.