Business
Flushing Financial Corporation Reports 4Q24 and 2024 GAAP Loss Per Share of $(1.61) and $(1.05), and Core EPS of $0.14 and $0.73, Respectively; Actions Taken to Improve Profitability and to Strengthen the Balance Sheet
"Our Company successfully executed meaningful actions in 2024 to position it for enhanced earnings in 2025. First, we raised $70 million of capital to
About this update from Flushing Financial Corporation
[{"type":"text","content":"\"Our Company successfully executed meaningful actions in 2024 to position it for enhanced earnings in 2025. First, we raised $70 million of capital to reposition the balance sheet, completed the restructuring of the investment portfolio, transferred loans to held for sale, and repositioned borrowings while reducing the cost. The overall result of this balance sheet restructuring is expected to be a significant improvement performance with 10-15 bps of NIM expansion expected in 1Q25. This restructuring will further propel our baseline NIM expansion, which was 29 and 18 bps, respectively, for GAAP and Core, in 4Q24. Second, our actions to move the balance sheet to a more neutral position have helped position the Company for the current environment. The recent steepening of the yield curve should further aid NIM improvement over time. Lastly, after making progress on our four areas of focus in 2024, we are shifting the priorities in 2025 to 1) Preserving Strong Liquidity and Capital, 2) Maintaining Credit Discipline, and 3) Improving Profitability. While progress occurred in 2024, by shifting our priorities in 2025, we expect further improvement.- John R. Buran, President and CEO UNIONDALE, NY / ACCESS Newswire / January 28, 2025 / Restructuring Largely Complete. The Company reported fourth quarter and full year 2024 GAAP loss per share of $(1.61) and $(1.05), respectively. Core EPS for the fourth quarter and full year 2024 totaled $0.14 and $0.73, respectively. During the fourth quarter, the Company took several actions to improve profitability and strengthen the balance sheet, including raising $70 million of common capital, selling approximately $445 million of securities yielding 1.98%, purchasing $384 million of securities yielding 5.67%, terminating $200 million of a related investment securities swap for a $3 million pre-tax gain, prepaying $251 million of FHLB advances at a weighted average rate of 4.82%, replacing this funding at a rate of 4.54%, and moving $74 million of loans with a weighted average coupon of 3.91% to held for sale incurring an 100% interest rate mark of $3.8 million pre-tax. The net result of these transactions and other adjustments totaled $76.0 million (pre-tax) or $(1.74) per share, net of tax in 4Q24 and $(1.77) per share in 2024.Asset Quality Stable, and Capital Improves. Asset quality metrics wer...