Business
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
About this update from Flushing Financial Corporation
[{"type":"text","content":"\"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, NY / ACCESS Newswire / 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 (...