Flushing Financial Q4 NIM Expands to 2.68%
Reports Q4 NIM expanded on both a GAAP and Core basis by 4 bps QoQ to 2.68% and 2.66%, respectively, primarily driven by growth in noninterest-bearing deposits and lower deposit costs. Reports Q4 provision for credit losses $2.7M vs. $6.4M last year. John R. Buran, President and CEO, commented, "Flushing Financial's Q4 and FY25 results underscore the strength and resilience of our franchise. Net interest margin expanded 4 basis points to 2.68%, with Core NIM reaching 2.66%, driven by favorable deposit mix and declining funding costs. Average noninterest-bearing deposits increased 12% year-over-year to 13% of total deposits, providing a stable, low-cost funding base. Our tangible common equity ratio improved to 8.14%, up 32 basis points from a year ago, while our CRE concentration declined to 465% from 522% a year earlier, reflecting our strategic capital and balance sheet management. With a loan pipeline of $276M and liquidity of $3.9B at December 31, 2025, we are well-positioned to serve our customers and deploy capital prudently. We remain committed to serving our customers and executing on our priorities with excellence. We look forward to the Company's transformation due to the announced merger with OceanFirst Financial Corp. and the opportunities the combination will create."
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Flushing Financial Q4 Results Miss Expectations Amid OceanFirst Acquisition
- Disappointing Earnings: Flushing Financial reported a Q4 Non-GAAP EPS of $0.32, missing expectations by $0.03, indicating pressure on profitability that may affect investor confidence.
- Revenue Shortfall: The quarter's revenue of $58.81 million fell short of the anticipated $62.27 million, reflecting weak market demand that could lead to slowed future growth.
- M&A Activity: OceanFirst Financial announced its acquisition of Flushing Financial, raising $225 million to support the transaction, highlighting market consolidation trends and recognition of Flushing's assets.
- Loan Repricing Strategy: Flushing Financial outlines a $2 billion loan repricing plan through 2027 aimed at enhancing profitability while expanding its presence in the Asian market, indicating a strategic focus on future growth opportunities.
Investor Rights Investigation: Multiple Company Transactions
- Legal Investigation Launched: Halper Sadeh LLC is investigating First Foundation Inc. (NYSE:FFWM) regarding its sale to FirstSun Capital Bancorp, which involves an exchange of 0.16083 shares of FirstSun common stock per share of First Foundation, potentially indicating breaches of fiduciary duties to shareholders.
- Cash Acquisition Scrutiny: Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is being sold to Permira and Warburg Pincus for $24.55 per share in cash, with Halper Sadeh LLC possibly seeking increased consideration for shareholders in this transaction.
- Shareholder Rights Protection: The sale of Flushing Financial Corp. (NASDAQ:FFIC) to OceanFirst Financial Corp. involves an exchange of 0.85 shares of OceanFirst common stock for each share of Flushing, prompting Halper Sadeh LLC to encourage shareholders to contact them to learn about their legal rights and options.
- Legal Fee Arrangement: Halper Sadeh LLC will handle these cases on a contingent fee basis, ensuring that shareholders are not responsible for any out-of-pocket legal fees or expenses, aiming to provide support for affected investors.
