NASDAQ$FFIC

Flushing Financial Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Delivered sequential EPS and GAAP NIM expansion as action plan continues to progress and opened 27th branch expanding Asian market presence.

Flushing Financial Corporation reported a GAAP EPS of $0.32 and core EPS of $0.31 for Q3 2023. The company delivered sequential EPS and GAAP NIM expansion through the continued execution of its action plan. Significant progress was made on reducing interest rate risk, increasing yields on new loans, and increasing noninterest-bearing deposits.

  • GAAP EPS of $0.32, up 10.3% QoQ, but down 57.9% YoY.
  • Core EPS totaled $0.31, an increase of 19.2% QoQ, but a decrease of 50.0% YoY.
  • GAAP NIM of 2.22% increased 4 bps QoQ but declined 85 bps YoY; while Core NIM of 2.14% compressed 3 bps QoQ and 89 bps YoY.
  • Nonperforming assets decreased 23.2% YoY and 3.1% QoQ while net recoveries were $42,000 in 3Q23.

Headline financials

Total Revenue

$47.9M

Previous: $70.2M-31.8%
EPS (adj)

$0.31

Previous: $0.62-50.0%
Capital Expenditures

-$4.03M

Previous: -$3.43M-17.3%
Free Cash Flow

$5.37M

Previous: $20M-73.1%
Net Income

$9.4M

Previous: $23.4M-59.9%
Operating Income

-$22.3M

Previous: $38.8M-157.5%
Gross Profit

$47.3M

Previous: $68.1M-30.5%
Cash & Equivalents

$201M

Previous: $165M+22.0%
Total Assets

$8.58B

Previous: $8.56B+0.2%
Stock-Based Comp

$850K

Previous: $975K-12.8%

Revenue & EPS history

Flushing Financial · Revenue · Quarterly

$47.9M

Q3 2023-31.8%vs Q3 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Flushing Financial · $54M total across 1 segment · Q1 2022

  • Mortgage Loans, Net
    $54M

Forward guidance

The company is focused on positioning the balance sheet towards interest rate risk neutrality, maintaining credit quality, ensuring ample liquidity, and enhancing customer experience

Tailwinds

  • Continued to take actions to position the Company’s balance sheet more towards interest rate risk neutral
  • During 3Q23, the Company added $100 million of interest rate hedges
  • Approximately 60% of the loan pipeline consists of floating rate loans including back-to-back loan swaps
  • Rate sensitivity to a +100 bps shock has been reduced by 66% over the past year
  • Increased noninterest bearing deposits by $46.6 million QoQ

Headwinds

  • Manhattan office buildings are minimal at 0.6% of net loans
  • Over 88% of the loan portfolio is collateralized by real estate with an average loan to value less than 36%
  • Debt service coverage ratio is 1.8x for multifamily and investor commercial real estate loans that reprice through 2025
  • The Company maintains ample liquidity with $3.7 billion of undrawn lines and resources
  • Uninsured and uncollateralized deposits were 16% of total deposits

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.1%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+16.4%

Q2 2020

Best reaction

-10.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-4.5%-2.4%
Q4 2025-1.4%+3.8%-0.8%
Q3 2025+4.3%+9.6%+27.6%
Q2 2025-2.2%-0.8%+8.9%
Q1 2025-3.9%+2.1%-3.4%
Q4 2024-2.2%-5.2%+0.1%
Q3 2024+1.7%+7.7%+20.4%
Q2 2024-10.1%-18.8%-14.9%
Q1 2024-2.2%-4.8%+9.8%
Q4 2023+2.6%+3.9%-23.0%
Q3 2023+2.1%+11.4%+15.5%
Q2 2023+14.0%+11.5%-0.1%
Q1 2023-8.5%-9.5%-11.2%
Q4 2022-8.0%-3.9%-1.8%
Q3 2022-4.0%-1.6%+1.9%
Q2 2022-0.5%-3.6%-3.2%
Q1 2022+3.4%+0.1%+6.0%
Q4 2021-5.5%-5.1%-4.9%
Q3 2021-0.5%+0.8%+3.8%
Q2 2021+1.7%-0.2%+6.1%
Q1 2021+3.8%+4.0%+4.2%
Q4 2020+0.0%+2.9%+13.5%
Q3 2020+0.2%+4.0%+21.6%
Q2 2020+16.4%+15.8%+14.5%
Q1 2020+10.8%-1.1%-2.1%
Q4 2019+1.5%+5.5%-7.3%
Q3 2019+0.4%+0.6%-2.8%
Q2 2019-6.0%-5.9%-11.5%
Q1 2019-1.4%+1.0%-6.5%
Q4 2018+0.6%+2.1%+5.3%
Q3 2018-5.2%-1.1%+4.5%
Q2 2018-1.4%-3.7%-1.0%
Q1 2018-5.2%-4.3%-1.3%
Q4 2017+0.6%+0.7%-3.8%
Q3 2017-6.7%-4.8%-5.3%
Q2 2017-0.5%+0.8%-3.4%
Q1 2017+11.6%+7.6%+1.5%
Q4 2016-0.1%+1.9%+2.8%
Q3 2016-6.3%-6.9%+16.3%
Q2 2016+8.7%+7.0%+9.4%
Q1 2016-2.0%
Q4 2015+10.2%
Q3 2015+5.5%
Q2 2015-1.2%
Q1 2015-0.6%
Q4 2014-4.4%
Q3 2014+1.2%
Q2 2014-4.3%
Q1 2014-0.7%
Q4 2013+4.1%
Q3 2013+1.5%
Q2 2013+2.2%
Q1 2013-3.6%
Q4 2012-0.2%
Q3 2012+2.7%
Q2 2012+3.1%
Q1 2011+0.9%
Q1 2012+4.5%
Q4 2009+2.2%
Q4 2010+2.2%
Q4 2011+2.2%
Q3 2011-2.5%
Q3 2010-2.5%
Q2 2010-5.4%
Q2 2011-5.4%
Q1 2010+5.2%

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