Nasdaq:FFIC
FLUSHING FINANCIAL CORP
A New York-based regional bank offering comprehensive commercial and consumer banking solutions with a focus on community engagement.
Key Metrics
Investment Thesis
Bull Case
As a community bank with a strong local franchise in New York, Flushing Financial offers potential for margin recovery if interest rates stabilize and credit losses normalize. The company maintains a solid balance sheet with $9.04B in assets and has access to capital markets evidenced by recent debt issuances of $300M.
Bear Case
Investors should avoid the stock given the severe deterioration from a $76.9M profit in 2022 to a $-31.3M loss in 2024, indicating a fundamental breakdown in its earnings model. The company carries a substantial retained earnings deficit of $492M and recently saw cash reserves drop by nearly $20M due to aggressive investing outflows that far exceeded operational generation.
About FLUSHING FINANCIAL CORP
Flushing Financial Corp operates as a multi-bank holding company providing commercial and consumer banking services primarily to New York City and surrounding regions. The institution leverages its community-focused approach to serve small businesses, individual consumers, and local government entities through traditional deposit-taking and lending activities. Key revenue streams include interest income from loans and securities, though recent periods have shown significant volatility in net profit margins.
Analysis
Management Discussion
The company reported a net loss of $31.3M in the latest period, contrasting with prior years of profitability, driven by a sharp decline in revenue to $6.9M amid substantial increases in operating expenses totaling $55.2M. Despite generating $79.1M in interest income, the firm faced a negative operating profit of $48.3M, while cash flow from operations remained thin at $12.4M against massive investing outflows of $505.6M.
Industry Overview
The regional banking sector is currently navigating a challenging environment characterized by compressing net interest margins and elevated provisions for loan losses. Smaller community banks like Flushing Financial are under pressure to scale operations while maintaining their localized service advantages against larger national competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $5.1M | $8.7M | $6.9M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $5.1M | $8.7M | $6.9M |
| Operating Expenses | $-99.7M | $-31.2M | $55.2M |
| Operating Income | $104.9M | $39.8M | $-48.3M |
| Stock-Based Comp | $6.8M | $5.6M | $2.5M |
| D&A | $5.9M | $6.0M | $5.7M |
| Amortization | $545.0K | $480.0K | $414.0K |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $73.0M | $222.3M | — |
| Interest Income | $20.9M | $37.6M | $79.1M |
| Pre-Tax Income | $104.9M | $39.8M | $-48.3M |
| Income Tax | $27.9M | $11.2M | $-16.9M |
| Continuing Ops | $76.9M | $28.7M | $-31.3M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $76.9M | $28.7M | $-31.3M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $76.9M | $28.7M | $-31.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| PP&E (Net) | $21.8M | $21.3M | $17.9M |
| Goodwill | $17.6M | $17.6M | $17.6M |
| Operating Leases | $43.3M | $39.6M | $45.8M |
| Total Assets | $8.42B | $8.54B | $9.04B |
| Total Liabilities | $7.75B | $7.87B | $8.31B |
| Shareholders' Equity | $677.2M | $669.8M | $724.5M |
| Retained Earnings | $547.5M | $549.7M | $492.0M |
| AOCI | $-36.5M | $-38.7M | $7.1M |
| Treasury Stock | $98.5M | $106.1M | $101.7M |
| Total L&E | $8.42B | $8.54B | $9.04B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $76.9M | $28.7M | $-31.3M |
| Non-Cash Adjustments | $41.1M | $-20.7M | $31.1M |
| Working Capital Changes | $-32.3M | $26.7M | $12.7M |
| Cash from Operations | $85.8M | $34.6M | $12.4M |
| Capital Expenditures | $4.3M | $5.5M | $2.3M |
| Cash from Investing | $-351.8M | $-94.3M | $-505.6M |
| Debt Issuances | $63.6M | $661.0M | $300.0M |
| Debt Repayments | $55.7M | $265.0M | $551.1M |
| Share Buybacks | $29.7M | $13.2M | — |
| Dividends Paid | $27.0M | $26.3M | $26.0M |
| Cash from Financing | $336.1M | $80.1M | $473.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $70.0M | $20.4M | $-19.6M |
| Beginning Cash | $81.7M | $151.8M | $172.2M |
| Ending Cash | $151.8M | $172.2M | $152.6M |
Frequently Asked Questions
How does FLUSHING FINANCIAL CORP make money?
Core commercial and retail banking operations generating interest income, wealth management services for high-net-worth individuals, and real estate lending focused on local property markets.
What are the main risks for FFIC?
Significant profitability decline with a recent net loss of $31.3M eroding retained earnings, heavy reliance on interest rate spreads which can compress during monetary policy shifts, substantial cash outflows from investing activities exceeding operating inflows, and exposure to regional real estate market downturns affecting loan quality.
What is FFIC's competitive advantage?
Deep roots in the New York metropolitan area fostering strong customer loyalty, agile decision-making structures typical of smaller regional banks, and specialized expertise in local community development finance.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.