Flushing Financial Corporation

04/28/2026 | Press release | Distributed by Public on 04/28/2026 15:13

Business/Financial Results (Form 8-K)

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John R. Buran, President and CEO Commentary

Flushing Financial Corporation Reports First Quarter 2026 Results;

Net Interest Margin Expands 16 Basis Points Year Over Year;

1Q26 GAAP and Core EPS of $0.17 and $0.29, Respectively

"Our first quarter results demonstrate the strength of this franchise as we move toward closing our transaction with OceanFirst Financial Corp. Noninterest bearing deposits grew to $995.5 million, up 15% year over year, and our cost of funds declined 13 basis points from the prior quarter, driving a net interest rate margin that has expanded 16 basis points year over year. Core net income grew 25% year over year, driven by sustained net interest income growth and an improved funding mix. With a loan pipeline of $327.4 million at quarter end, up 55% year over year, we enter this next chapter from a position of strength. We look forward to completing the transaction with OceanFirst Financial Corp. and to the expanded capabilities and opportunities their platform will bring to the customers and communities we serve."

- John R. Buran, President and CEO

UNIONDALE, N.Y., April 28, 2026 - Net Interest Margin Expansion and Noninterest Deposit Growth. The Company reported 1Q26 GAAP and Core EPS of $0.17 and $0.29, compared to ($0.29) and $0.23, respectively, a year ago. During the quarter, NIM on a GAAP basis expanded 16 basis points year over year to 2.67% while Core NIM expanded 17 basis points year over year, driven by lower deposit costs and growth in noninterest bearing deposits. Average net loans decreased 2.0% YoY and 0.8% QoQ consistent with the Company's focus on disciplined pricing and credit standards. The loan pipeline increased 54.9% year over year and 18.8% quarter over quarter to $327.4 million at March 31, 2026.

Stable Capital and Stable Credit Metrics. NPAs to assets were 77 bps, compared to 71 bps a year ago and 68 bps in the prior quarter. Net charge-offs to average loans were 3 bps in 1Q26, compared to 27 bps in 1Q25 and 11 bps in 4Q25. TCE/TA1 was 7.86% at March 31, 2026, compared to 7.79% a year ago and 8.14% at December 31, 2025.

Key Financial Metrics2

1Q26

4Q25

3Q25

2Q25

1Q25

GAAP:

Earnings (Loss) per Share

$0.17

$0.12

$0.30

$0.41

($0.29)

ROAA (%)

0.26

0.18

0.48

0.64

(0.43)

ROAE (%)

3.26

2.24

5.86

8.00

(5.36)

NIM FTE3 (%)

2.67

2.68

2.64

2.54

2.51

Core:

EPS

$0.29

$0.32

$0.35

$0.32

$0.23

ROAA (%)

0.45

0.49

0.55

0.50

0.35

ROAE (%)

5.56

6.08

6.71

6.29

4.34

Core NIM FTE (%)

2.66

2.66

2.62

2.52

2.49

Credit Quality:

NPAs/Assets (%)

0.77

0.68

0.70

0.75

0.71

ACLs/Loans (%)

0.68

0.64

0.63

0.62

0.59

ACLs/NPLs (%)

87.92

102.98

93.28

83.76

86.54

NCOs/Avg Loans (%)

0.03

0.11

0.07

0.15

0.27

Balance Sheet:

Avg Loans ($B)

$6.5

$6.6

$6.6

$6.7

$6.7

Avg Dep ($B)

$7.5

$7.5

$7.3

$7.6

$7.6

Book Value/Share

$20.58

$20.96

$21.06

$20.91

$20.81

Tangible BV/Share

$20.56

$20.94

$21.03

$20.89

$20.78

TCE/TA (%)

7.86

8.14

8.01

8.04

7.79

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.

1 Tangible Common Equity ("TCE")/Total Assets ("TA").

2 See "Reconciliation of GAAP Earnings (Loss) and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Income Net Interest Margin to Core Net Interest Income and Net Interest Margin."

3 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").

Investor Contact: Susan K. Cullen, SEVP, Chief Financial Officer, 718-961-5400‌1

1Q26 Highlights

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Net interest margin FTE increased 16 bps YoY and decreased 1 bp QoQ to 2.67%; Core net interest margin FTE increased 17 bps YoY and stayed flat QoQ to 2.66%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled 5 bps in 1Q26 compared to 3 bps in 1Q25 and 8 bps in 4Q25
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Average total deposits decreased 0.9% YoY and 0.1% QoQ to $7.5 billion; Average noninterest bearing deposits increased 12.9% YoY but decreased 0.5% QoQ totaling 12.9% of total average deposits compared to 11.3% in 1Q25 and 12.9% in 4Q25; Average CDs were $2.3 billion, down 12.8% YoY and 2.8% QoQ
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Period end loans decreased 2.7% YoY and 1.4% QoQ to $6.6 billion; Back-to-back swap loan originations were $25.1 million compared to $18.0 million in 1Q25 and $45.5 million in 4Q25 and generated $0.4 million, $0.3 million, and $0.7 million of noninterest income, respectively; Loan pipeline increased 54.9% YoY and 18.8% QoQ to $327.4 million; Approximately 13.6% of the loan pipeline consists of back-to-back swap loans
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NPAs totaled $68.2 million (77 bps of assets) in 1Q26 compared to $64.3 million (71 bps of assets) a year ago and $58.8 million (68 bps of assets) in the prior quarter
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Provision for credit losses was $2.0 million in 1Q26 compared to $4.3 million in 1Q25 and $2.7 million in 4Q25; Net charge-offs were $0.5 million in 1Q26 compared to $4.4 million in 1Q25 and $1.8 million in 4Q25; Allowance for loan losses to gross loans totaled 0.68% in 1Q26 compared to 0.59% in 1Q25 and 0.64% in 4Q25
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Tangible Common Equity to Tangible Assets was 7.86% at March 31, 2026, compared to 7.79% at March 31, 2025, and 8.14% at December 31, 2025; Tangible book value per share was $20.56 at March 31, 2026, compared to $20.78 a year ago and $20.94 for the prior quarter

Investor Contact: Susan K. Cullen, SEVP, Chief Financial Officer, 718-961-5400‌2

Income Statement Highlights

YoY

QoQ

($000s, except EPS)

1Q26

4Q25

3Q25

2Q25

1Q25

Change

Change

Net Interest Income

$55,194

$55,506

$53,828

$53,209

$52,989

4.2

%

(0.6)

%

Provision for Credit Losses

2,011

2,745

1,531

4,194

4,318

(53.4)

(26.7)

Noninterest Income (Loss)

1,785

3,303

4,746

10,277

5,074

(64.8)

(46.0)

Noninterest Expense

46,775

48,228

43,365

40,356

59,676

(21.6)

(3.0)

Income (Loss) Before Income Taxes

8,193

7,836

13,678

18,936

(5,931)

238.1

4.6

Provision (Benefit) for Income Taxes

2,360

3,810

3,231

4,733

3,865

(38.9)

(38.1)

Net Income (Loss)

$5,833

$4,026

$10,447

$14,203

($9,796)

159.5

44.9

Diluted Earnings (Loss) per Common Share

$0.17

$0.12

$0.30

$0.41

($0.29)

158.6

41.7

Core Net Income1

$9,940

$10,918

$11,957

$11,162

$7,931

25.3

(9.0)

Core EPS1

$0.29

$0.32

$0.35

$0.32

$0.23

26.1

(9.4)

1 See Reconciliation of GAAP Earnings (Loss) and Core Earnings

Net interest income increased YoY and decreased QoQ.

● Net Interest Margin FTE of 2.67% increased 16 bps YoY but decreased 1 bp QoQ; The yield on interest earning assets decreased 12 bps QoQ to 5.46%, while the cost of funds decreased 13 bps QoQ.
● Prepayment penalty income, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled $0.9 million (5 bps to NIM) in 1Q26 compared to $0.6 million (3 bps to NIM) in 1Q25 and $1.6 million (8 bps to NIM) in 4Q25
● Excluding the items in the previous bullet, the net interest margin was 2.62% in 1Q26 compared to 2.48% in 1Q25 and 2.60% in 4Q25

The provision for credit losses decreased YoY and QoQ.

● Net charge-offs were $0.5 million (3 bps of average loans) in 1Q26 compared to $4.4 million (27 bps of average loans) in 1Q25 and $1.8 million (11 bps of average loans) in 4Q25
● No systemic issues related to the charge-offs in 1Q26

Noninterest income decreased YoY and QoQ.

● Back-to-back swap loan closings of $25.1 million in 1Q26 (compared to $18.0 million in 1Q25 and $45.5 million in 4Q25) generated $0.4 million of noninterest income (compared to $0.3 million in 1Q25 and $0.7 million in 4Q25)
● Net gains (losses) from fair value adjustments were $(3.6) million ($(0.07) per share, net of tax) in 1Q26 compared to ($0.2) million ($0.00) per share, net of tax) in 1Q25 and $(2.0) million ($(0.03) per share, net of tax) in 4Q25
● Life Insurance proceeds were $0.1 million in 1Q26
● Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $5.2 million in 1Q26, down 3.2 % YoY and up 0.1% QoQ

Noninterest expense decreased YoY and QoQ.

● GAAP noninterest expense was $46.8 million in 1Q26, down 21.6% YoY and 3.0% QoQ, reflecting the absence of the $17.6 million goodwill impairment recorded in 1Q25 and lower merger-related costs compared to 4Q25.
● Core noninterest expenses were $44.3 million in 1Q26, up 5.6% YoY and up 2.3% QoQ.
● GAAP noninterest expense to average assets was 2.12% in 1Q26 compared to 2.65% in 1Q25 and 2.18% in 4Q25

Provision for income taxes was $2.4 million in 1Q26 compared to $3.9 million in 1Q25 and $3.8 million in 4Q25.

● The effective tax rate was 28.8% in 1Q26 reflecting a more normalized rate compared to prior periods. The 1Q25 rate of (65.2%) was distorted by the non-deductible goodwill impairment charge, and the 4Q25 rate of 48.6% was elevated by non-deductible merger-related expenses.

Investor Contact: Susan K. Cullen, SEVP, Chief Financial Officer, 718-961-5400‌3

Balance Sheet, Credit Quality, and Capital Highlights

YoY

QoQ

1Q26

4Q25

3Q25

2Q25

1Q25

Change

Change

Averages ($MM)

Loans

$6,540

$6,592

$6,595

$6,678

$6,672

(2.0)

%

(0.8)

%

Total Deposits

7,492

7,497

7,346

7,607

7,561

(0.9)

(0.1)

Credit Quality ($000s)

Nonperforming Loans

$50,555

$41,564

$44,851

$49,247

$46,263

9.3

%

21.6

%

Nonperforming Assets

68,169

58,825

62,129

66,125

64,263

6.1

15.9

Criticized and Classified Loans

102,213

83,718

74,108

72,005

89,673

14.0

22.1

Criticized and Classified Assets

119,827

100,979

91,386

88,883

107,673

11.3

18.7

Allowance for Credit Losses/Loans (%)

0.68

0.64

0.63

0.62

0.59

9

bp

4

bp

Capital

Book Value/Share

$20.58

$20.96

$21.06

$20.91

$20.81

(1.1)

%

(1.8)

%

Tangible Book Value/Share

20.56

20.94

21.03

20.89

20.78

(1.1)

(1.8)

Tang. Common Equity/Tang. Assets (%)

7.86

8.14

8.01

8.04

7.79

7

bps

(28)

bps

Leverage Ratio (%)

8.48

8.52

8.64

8.31

8.12

36

(4)

Average loans decreased YoY and QoQ.

● Period end loans totaled $6.6 billion, down 2.7% YoY and 1.4% QoQ
● Total loan closings were $161.5 million in 1Q26 compared to $174.1 million in 1Q25 and $261.4 million in 4Q25; the loan pipeline was $327.4 million at March 31, 2026, up 54.9% YoY and 18.8% QoQ
● The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of less than 35%

Average total deposits decreased YoY and QoQ.

● Average noninterest bearing deposits increased 12.9% YoY and decreased 0.5% QoQ and comprised 12.9% of average total deposits in 1Q26 compared to 11.3% a year ago
● Average core deposits increased 5.3% YoY and 1.2% QoQ

Credit Quality: Nonperforming loans increased YoY and QoQ.

● Nonperforming loans were 77 bps of gross loans in 1Q26 compared to 69 bps in 1Q25 and 63 bps in 4Q25
● Criticized and classified loans were 156 bps of gross loans at 1Q26 compared to 133 bps at 1Q25 and 126 bps at 4Q25

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both decreased 1.1% YoY to $20.58 and $20.56, respectively.

● The Company paid a dividend of $0.22 per share in 1Q26 and declared an additional dividend of $0.22 per share paid on April 24, 2026; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration date or maximum dollar limit
● Ample capital enables the Company to continue investment in the business and strategic initiatives

Investor Contact: Susan K. Cullen, SEVP, Chief Financial Officer, 718-961-5400‌4

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State -chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at FlushingBank.com. Flushing Financial Corporation's earnings release is available at www.FlushingBank.com under Investor Relations.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding the proposed transaction of the Company with OceanFirst Financial Corp. ("OceanFirst"). Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "goals", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-looking statements.

Flushing Financial Corporation published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 28, 2026 at 21:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]