Flushing Financial Reports 13.7% Increase in Q3 Net Income, 12.9% Decline in Nine-Month Net Income

Flushing Financial Corporation reported its financial results for the three and nine months ended September 30, 2024, highlighting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, net income reached $8.9 million, a 13.7% increase from $7.8 million in the same period of 2023. This translated to diluted earnings per share of $0.30, up from $0.26 year-over-year. The increase in net income was attributed to a rise in net interest income, which totaled $45.6 million, a 2.6% increase from $44.4 million in Q3 2023. Interest income surged to $122.6 million, reflecting a 17.8% increase from $104.0 million in the prior year, driven by a higher yield on interest-earning assets, which rose to 5.63% from 5.19%.

However, total net income for the nine months ended September 30, 2024, was $17.9 million, down 12.9% from $20.6 million in the same period of 2023. The diluted earnings per share for this period decreased to $0.60 from $0.69. The decline in net income was primarily due to increased interest expenses, which rose 34.4% to $214.5 million, compared to $159.6 million in 2023.

Flushing Financial's total assets increased to $9.28 billion as of September 30, 2024, up 8.7% from $8.54 billion at the end of 2023. Total liabilities also rose to $8.61 billion, a 9.5% increase from $7.87 billion. Total deposits grew significantly, reaching $7.57 billion, up from $6.82 billion at the end of 2023, with interest-bearing deposits increasing to $6.64 billion.

The company reported a provision for credit losses of $1.7 million for Q3 2024, compared to $0.6 million in Q3 2023, reflecting increased reserves for specific loans. For the nine-month period, the provision for credit losses was $3.1 million, significantly lower than $9.5 million in the prior year.

Strategically, Flushing Financial has not engaged in share repurchases during the quarter, with 807,964 shares remaining under its authorized stock repurchase program. The company continues to maintain a strong liquidity position, with total available liquidity of $5.89 billion as of September 30, 2024.

Overall, while Flushing Financial Corporation experienced growth in certain areas, challenges in profitability and increased expenses have impacted its year-to-date performance compared to the previous fiscal period.