{"id":751162,"date":"2023-04-25T18:40:30","date_gmt":"2023-04-25T22:40:30","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/flushing-financial-corporation-reports-1q23-gaap-eps-of-0-17-and-core-eps-of-0-10-deposits-increase-sequentially-and-year-over-year-liquidity-remains-strong-outlines-action-plan-to-enhance-busine\/"},"modified":"2023-04-25T18:40:30","modified_gmt":"2023-04-25T22:40:30","slug":"flushing-financial-corporation-reports-1q23-gaap-eps-of-0-17-and-core-eps-of-0-10-deposits-increase-sequentially-and-year-over-year-liquidity-remains-strong-outlines-action-plan-to-enhance-busine","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/flushing-financial-corporation-reports-1q23-gaap-eps-of-0-17-and-core-eps-of-0-10-deposits-increase-sequentially-and-year-over-year-liquidity-remains-strong-outlines-action-plan-to-enhance-busine\/","title":{"rendered":"Flushing Financial Corporation Reports 1Q23 GAAP EPS of $0.17 and Core EPS of $0.10; Deposits Increase Sequentially and Year-Over-Year; Liquidity Remains Strong Outlines Action Plan to Enhance Business Model Resilience and Drive Profitability in Current Environment"},"content":{"rendered":"
\n

\n John R. Buran, President and CEO Commentary<\/strong>\n <\/p>\n\n\n
\u201cThe inverted yield curve and the rising rate environment led to first quarter results below our expectations. To better adapt to the changing environment, we are accelerating the following actions to enhance the resilience of our business model and strengthen performance: 1) move more towards being interest rate neutral in the shorter term; 2) increase our focus on risk adjusted returns and profitability; 3) emphasize our brand of customer service and deep relationships to continue to expand the client base and enhance loyalty; 4) further tighten expense controls; 5) review new and existing lending relationships to prepare for the next credit cycle; and 6) preserve our strong liquidity and capital. We continue to experience solid deposit growth, which reflects our deep client relationships and ties to our communities. Further, our strong liquidity is expected to allow us to continue our long track record of dividend payments. While the environment has clearly become more challenging, we are confident that our decisive actions we are taking now will result in improved profitability in the future and set the stage for consistent and significantly higher returns.\u201d <\/p>\n

– John R. Buran, President and CEO<\/strong><\/td>\n<\/tr>\n<\/table>\n

UNIONDALE, N.Y., April 25, 2023 (GLOBE NEWSWIRE) — Strong Credit Quality Despite Loss on One Singular Relationship. <\/strong>Results for the quarter were impacted by our decision to fully charge off a $9.2 million business credit placed on non-accrual in 2Q22. This credit was a participation where the domestic borrower had a significant customer who shipped its product internationally and was impacted by world events. Existing credit protection became more questionable during the quarter which led to the decision to charge-off. Consistent with our long-standing history of conservative underwriting, the remainder of the credit portfolio continued to perform well as delinquencies improved 16 basis points and criticized and classified assets declined QoQ. <\/p>\n

NIM Outlook; Solid Capital and Liquidity.<\/strong> While rising rates temporarily compress our net interest margin, the NIM should begin to rebound, on a lagged basis, after the Fed stops raising rates. To limit additional margin squeeze, we moved closer to interest rate neutral, achieving approximately 40% of our target for 2023 in the first quarter. Capital continues to be strong with a TCE1<\/sup> of 7.73%. Liquidity is solid with $3.7 billion of availability while uninsured and uncollateralized deposits are a low $1.1 billion or 16.2% of total deposits.<\/p>\n\n\n
\n Key Financial Metrics<\/strong>
\n
\n 2<\/strong>
\n <\/sup>\n <\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\n 1Q23<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n 4Q22<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 3Q22<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2Q22<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 1Q22<\/strong>\n <\/td>\n<\/tr>\n
\n
\n GAAP:<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
EPS<\/td>\n\u00a0<\/td>\n$0.17<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$0.34<\/td>\n\u00a0<\/td>\n$0.76<\/td>\n\u00a0<\/td>\n$0.81<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$0.58<\/td>\n<\/tr>\n
ROAA (%)<\/td>\n\u00a0<\/td>\n0.24<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.48<\/td>\n\u00a0<\/td>\n1.11<\/td>\n\u00a0<\/td>\n1.22<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.91<\/td>\n<\/tr>\n
ROAE (%)<\/td>\n\u00a0<\/td>\n3.02<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6.06<\/td>\n\u00a0<\/td>\n13.91<\/td>\n\u00a0<\/td>\n15.00<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.83<\/td>\n<\/tr>\n
NIM FTE3<\/sup> (%)<\/td>\n\u00a0<\/td>\n2.27<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2.70<\/td>\n\u00a0<\/td>\n3.07<\/td>\n\u00a0<\/td>\n3.35<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.36<\/td>\n<\/tr>\n
\n
\n Core:<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
EPS<\/td>\n\u00a0<\/td>\n$0.10<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$0.57<\/td>\n\u00a0<\/td>\n$0.62<\/td>\n\u00a0<\/td>\n$0.70<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$0.61<\/td>\n<\/tr>\n
ROAA (%)<\/td>\n\u00a0<\/td>\n0.14<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.82<\/td>\n\u00a0<\/td>\n0.90<\/td>\n\u00a0<\/td>\n1.05<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.94<\/td>\n<\/tr>\n
ROAE (%)<\/td>\n\u00a0<\/td>\n1.76<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n10.29<\/td>\n\u00a0<\/td>\n11.24<\/td>\n\u00a0<\/td>\n12.90<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n11.27<\/td>\n<\/tr>\n
Core NIM FTE (%)<\/td>\n\u00a0<\/td>\n2.25<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2.63<\/td>\n\u00a0<\/td>\n3.03<\/td>\n\u00a0<\/td>\n3.33<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.31<\/td>\n<\/tr>\n
\n
\n Credit Quality:<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
NPAs\/Loans & OREO (%)<\/td>\n\u00a0<\/td>\n0.61<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.77<\/td>\n\u00a0<\/td>\n0.72<\/td>\n\u00a0<\/td>\n0.72<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.21<\/td>\n<\/tr>\n
ACLs\/Loans (%)<\/td>\n\u00a0<\/td>\n0.56<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.58<\/td>\n\u00a0<\/td>\n0.59<\/td>\n\u00a0<\/td>\n0.58<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.57<\/td>\n<\/tr>\n
ACLs\/NPLs (%)<\/td>\n\u00a0<\/td>\n182.89<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n124.89<\/td>\n\u00a0<\/td>\n142.29<\/td>\n\u00a0<\/td>\n141.06<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n266.12<\/td>\n<\/tr>\n
NCOs\/Avg Loans (%)<\/td>\n\u00a0<\/td>\n0.54<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.05<\/td>\n\u00a0<\/td>\n0.02<\/td>\n\u00a0<\/td>\n(0.03<\/td>\n)<\/td>\n\u00a0<\/td>\n0.06<\/td>\n<\/tr>\n
\n
\n Balance Sheet:<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Avg Loans ($B)<\/td>\n\u00a0<\/td>\n$6.9<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$6.9<\/td>\n\u00a0<\/td>\n$6.9<\/td>\n\u00a0<\/td>\n$6.6<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$6.6<\/td>\n<\/tr>\n
Avg Dep ($B)<\/td>\n\u00a0<\/td>\n$6.8<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$6.7<\/td>\n\u00a0<\/td>\n$6.3<\/td>\n\u00a0<\/td>\n$6.4<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$6.4<\/td>\n<\/tr>\n
Book Value\/Share<\/td>\n\u00a0<\/td>\n$22.84<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$22.97<\/td>\n\u00a0<\/td>\n$22.47<\/td>\n\u00a0<\/td>\n$22.38<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$22.26<\/td>\n<\/tr>\n
Tangible BV\/Share<\/td>\n\u00a0<\/td>\n$22.18<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$22.31<\/td>\n\u00a0<\/td>\n$21.81<\/td>\n\u00a0<\/td>\n$21.71<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$21.61<\/td>\n<\/tr>\n
TCE\/TA (%)<\/td>\n\u00a0<\/td>\n7.73<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n7.82<\/td>\n\u00a0<\/td>\n7.62<\/td>\n\u00a0<\/td>\n7.82<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n8.05<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n 1<\/sup> Tangible Common Equity (\u201cTCE\u201d)\/Total Assets (\u201cTA\u201d) 2<\/sup> See \u201cReconciliation of GAAP Earnings and Core Earnings\u201d, \u201cReconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue\u201d, and \u201cReconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin.\u201d 3<\/sup> Net Interest Margin (\u201cNIM\u201d) Fully Taxable Equivalent (\u201cFTE\u201d)<\/p>\n\n\n
\n 1Q23 Highlights<\/strong>\n <\/td>\n<\/tr>\n<\/table>\n