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FLUSHING FINANCIAL (FFIC)·Q4 2025 Earnings Summary

Flushing Financial Beats on Core EPS as NIM Expansion Continues; OceanFirst Merger Pending

January 27, 2026 · by Fintool AI Agent

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Flushing Financial Corporation (NASDAQ: FFIC) reported Q4 2025 results this morning, delivering Core EPS of $0.32 that beat consensus estimates by approximately 6.7%. The New York-based community bank posted its fifth consecutive quarter of net interest margin expansion, with NIM reaching 2.68%—up 29 basis points year-over-year.

The stock traded up 0.4% following the release to $15.56. Notably, the company did not host an earnings call due to its pending merger with OceanFirst Financial Corp.

Did Flushing Financial Beat Earnings?

Core EPS: Beat | Revenue: Inline

MetricQ4 2025ConsensusSurprise
Core EPS$0.32 $0.30+6.7%
GAAP EPS$0.12 ——
Net Interest Income$55.5M ~$58.7M-0.3%

GAAP EPS of $0.12 was impacted by $4.8 million in non-deductible merger-related expenses, resulting in an elevated effective tax rate of 48.6% for the quarter.

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What's Driving Net Interest Margin Expansion?

FFIC's NIM story has been one of the bright spots in regional banking. The bank has now expanded margins for five consecutive quarters:

MetricQ4 2024Q1 2025Q2 2025Q3 2025Q4 2025
GAAP NIM FTE2.39%2.51%2.54%2.64%2.68%
Core NIM FTE2.25%2.49%2.52%2.62%2.66%

Key drivers of margin expansion:

  1. Deposit mix shift: Average noninterest-bearing deposits increased 11.6% YoY and now comprise 12.9% of total deposits (vs. 11.7% a year ago)
  2. Lower funding costs: Cost of funds declined 17 basis points sequentially to 3.04%
  3. CD runoff: Average certificates of deposit fell 13.1% YoY as the bank replaced higher-cost funding

How Is Credit Quality Holding Up?

Credit metrics remained stable, though criticized and classified loans ticked higher:

MetricQ4 2025Q3 2025Q4 2024
NPAs/Assets0.68%0.70%0.57%
ACL/Loans0.64%0.63%0.60%
Net Charge-offs11 bps7 bps28 bps
Criticized & Classified/Loans126 bps111 bps107 bps

Management noted "no systemic issues" related to the Q4 charge-offs. The allowance for credit losses to nonperforming loans improved to 103% from 93% in Q3 2025.

CRE concentration declining: The bank's commercial real estate concentration fell to 465% from 522% a year ago and 475% last quarter—a key focus area for regulators.

What Did Management Say About the OceanFirst Merger?

CEO John R. Buran's prepared commentary focused on the pending combination:

"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."

The company provided limited forward-looking commentary given the pending transaction. There was no earnings conference call—unusual for a public company—as FFIC winds down its standalone reporting ahead of the merger.

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How Did the Stock React?

FFIC shares rose 0.4% to $15.56 following the release, a muted reaction typical of merger-pending situations where the stock trades closer to deal value than fundamental earnings.

Key stock metrics:

  • Current price: $15.56
  • 52-week range: $10.65 - $17.79
  • Market cap: $526M
  • Book value/share: $20.96
  • Tangible book value/share: $20.94

The stock trades at 0.74x tangible book value, reflecting both the pending merger dynamics and the regional bank valuation environment.

What Changed From Last Quarter?

Positive developments:

  • NIM expanded 4 bps QoQ to 2.68%
  • Noninterest-bearing deposits grew 8.6% QoQ
  • TCE/TA improved to 8.14% from 8.01%
  • Provision expense returned to normalized levels ($2.7M vs elevated Q1 2025)

Areas to watch:

  • Criticized and classified loans increased to 126 bps of gross loans from 111 bps
  • Loan pipeline down 20.3% QoQ to $275.5M (though up 38.6% YoY)
  • Average loans continue to decline (-0.05% QoQ, -2.8% YoY)

Full Year 2025 Summary

MetricFY 2025FY 2024Change
GAAP EPS$0.54($1.07)+$1.61
Core EPS$1.22$0.73+67%
Net Interest Income$215.5M$182.0M+18%
Net Interest Margin2.59%2.15%+44 bps
Return on Avg Equity2.63%(4.67%)+729 bps

The dramatic improvement from FY 2024 reflects the normalization after Q4 2024's $76.4 million securities sale loss from the balance sheet restructuring.

Capital and Shareholder Returns

Capital ratios remained strong:

RatioQ4 2025Well-Capitalized
CET110.61%6.50%
Tier 1 Capital11.36%8.00%
Total Capital14.90%10.00%
TCE/TA8.14%—

The company maintained its quarterly dividend at $0.22 per share. 807,964 shares remain authorized for repurchase under the existing program.

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Key Takeaways

  1. Core earnings beat: $0.32 Core EPS exceeded the ~$0.30 consensus, driven by continued NIM expansion
  2. Fifth quarter of NIM growth: 2.68% NIM (+29 bps YoY) reflects disciplined deposit pricing and favorable mix shift
  3. Credit stable but watch list growing: NPAs/assets at 68 bps, but criticized loans increased QoQ
  4. Merger mode: Limited guidance or color given pending OceanFirst combination
  5. Stock muted: +0.4% reaction reflects merger arbitrage dynamics rather than earnings fundamentals

Report generated by Fintool AI Agent. Data sourced from company filings and S&P Global.

Related: FFIC Company Profile | Q3 2025 Earnings | Latest Transcript