Flushing Financial Corporation (FFIC) | Investment Case

1. Company Snapshot

1.a. Company Description

Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units.It offers various deposit products, including checking and savings accounts, money market accounts, demand accounts, NOW accounts, and certificates of deposit.The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities.

In addition, it offers banking services to public municipalities comprising counties, cities, towns, villages, school districts, libraries, fire districts, and various courts.As of December 31, 2021, the company operated 24 full-service offices located in the New York City boroughs of Queens, Brooklyn, and Manhattan; and in Nassau and Suffolk County, New York, as well as an Internet branch.Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.

Show Full description

1.b. Last Insights on FFIC

Flushing Financial Corporation's recent performance was positively driven by its Q3 earnings beat, with quarterly earnings of $0.35 per share exceeding the Zacks Consensus Estimate of $0.31 per share. This represents a year-over-year increase from $0.26 per share. Additionally, the company's earnings call highlighted its strong financial position. Furthermore, Y Intercept Hong Kong Ltd increased its stake in the company by 396.0%, purchasing an additional 91,489 shares. The company's solid Q3 earnings metrics also drew attention from analysts.

1.c. Company Highlights

Last Price	16.5
Change Percentage	-2.54%
Open	16.62
Previous Close	16.93
Market Cap ( Millions)	557
Volume	374126
Year High	17.51
Year Low	10.65
M A 50	14.41
M A 200	13.11

FCF Yield	6.71%
Dividend Yield	5.33%
ROE	-4.84%
Debt / Equity	76.03%
Net Debt / EBIDTA	-976.34%
Price To Book	0.8
Price Earnings Ratio	-16.55
Price To FCF	14.89
Price To sales	1.34
EV / EBITDA	-23.44

2. Flushing Financial's Q3 Earnings: A Strong Performance Amidst Macroeconomic Uncertainty

Flushing Financial Corporation reported a robust third quarter, with GAAP earnings per share (EPS) of $0.30 and core EPS of $0.35, representing a 55% improvement from the previous year. The company's net interest margin (NIM) expanded 10 basis points quarter-over-quarter, driven by its asset repricing strategy. Revenue growth is expected to continue, with analysts estimating a 7.5% increase in revenues for the next year. The actual EPS of $0.35 exceeded estimates of $0.31, demonstrating the company's strong earnings power.

Publication Date: Nov -19

                                    📋 Highlights
                                    Core Earnings Growth::
                                                Core earnings per share increased 55% YoY to $0.35 in Q3 2025.
Net Interest Margin (NIM) Expansion::
                                                NIM rose 10 bps QoQ, with 147 bps projected loan repricing benefit by 2027.
Deposit Growth & Stability::
                                                Average noninterest-bearing deposits grew 6% YoY, and total deposits reached $7.3 billion.
Loan Retention Success::
                                                80% of $96M repricing loans retained at 6.65%, up 222 bps from prior rates.
Liquidity & Capital Position::
                                                $3.9 billion undrawn liquidity, 17% uninsured deposits, and plans to hit double-digit ROTCE by late 2027.

                                

Loan Portfolio and Credit Quality

The company's loan portfolio is well-positioned, with $96 million of loans repricing in the third quarter, of which 80% were retained at a weighted average rate of 6.65%, 222 basis points higher than the prior rate. This speaks to the company's strong client relationships and disciplined pricing. The multifamily and investor commercial real estate portfolios maintain strong debt coverage ratios of 1.7x, and the multifamily allowance for credit losses to criticized and classified multifamily loans improved to 74 basis points, indicating appropriate reserve levels.

Funding and Liquidity

Flushing Financial's deposit franchise remains a key pillar of its funding profile, with average total deposits of $7.3 billion and average noninterest-bearing deposits increasing 6% year-over-year. The company's liquidity position is ample, with $3.9 billion in undrawn lines and resources at quarter-end. Uninsured and uncollateralized deposits represent only 17% of total deposits, providing a stable and reliable funding base.

Outlook and Valuation

Looking ahead, the company expects stable total assets, market-dependent loan growth, and a positively sloped yield curve. With a current Price-to-Tangible Book Value (P/TBV) ratio of 0.63 (implied by the given 'P/B Ratio' of 0.75, assuming minimal intangible assets for a bank), and a Dividend Yield of 5.73%, the stock appears attractively valued. The company's target to reach double-digit Return on Tangible Common Equity (ROTCE) in late 2027 suggests potential for further upside.

3. NewsRoom

Flushing Financial Corporation Declares Quarterly Dividend of $0.22 Per Share

Nov -24

Source: accessnewswire.com

Critical Survey: Flushing Financial (NASDAQ:FFIC) & NASB Financial (OTCMKTS:NASB)

Nov -22

Source: defenseworld.net

Flushing Bank to Be Honored with the Bridge Builder Award at the 2025 Chinatown Partnership and Chinatown BID Gala

Nov -19

Source: accessnewswire.com

Flushing Financial Corporation Celebrates its 30th Anniversary of being Listed on Nasdaq

Nov -18

Source: accessnewswire.com

Campbell & CO Investment Adviser LLC Boosts Holdings in Flushing Financial Corporation $FFIC

Nov -17

Source: defenseworld.net

Y Intercept Hong Kong Ltd Buys 91,489 Shares of Flushing Financial Corporation $FFIC

Nov -03

Source: defenseworld.net

Flushing Financial Corporation (FFIC) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

Here's What Key Metrics Tell Us About Flushing Financial (FFIC) Q3 Earnings

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Community Bank

Expected Growth: 6.0%

Flushing Financial Corporation's 6.0% growth is driven by strategic expansion into underserved communities, increased commercial lending, and a strong deposit base. Effective cost management, improved operating efficiency, and a favorable interest rate environment also contribute to the bank's growth. Additionally, the bank's focus on digital transformation and customer experience enhancement supports its continued growth momentum.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and treasury management services.

Retail Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Provides residential and commercial mortgage lending services, including purchase and refinance loans.

Wealth Management

Offers investment and wealth management services, including financial planning, investment management, and trust services.

Treasury Management

Provides cash management and treasury services to businesses, including account management, payment processing, and fraud prevention.

8. Flushing Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Flushing Financial Corporation is moderate due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple financial institutions and online banking services, giving customers the power to switch between providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the limited number of suppliers and the company's ability to negotiate favorable terms.

Threat Of New Entrants

The threat of new entrants is moderate due to the regulatory barriers and capital requirements for entering the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and online banking services, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	55.94%
Debt Cost	5.30%
Equity Weight	44.06%
Equity Cost	7.78%
WACC	6.40%
Leverage	126.95%

11. Quality Control: Flushing Financial Corporation passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bank First

A-Score: 6.8/10

Value: 3.4

Growth: 6.6

Quality: 7.6

Yield: 6.0

Momentum: 9.5

Volatility: 7.7

1-Year Total Return ->

Citizens & Northern

A-Score: 6.6/10

Value: 6.0

Growth: 4.9

Quality: 7.4

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Hawthorn Bancshares

A-Score: 6.2/10

Value: 6.1

Growth: 5.2

Quality: 6.0

Yield: 5.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

Flushing Financial

A-Score: 5.6/10

Value: 8.3

Growth: 2.7

Quality: 3.9

Yield: 10.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

ACNB

A-Score: 5.6/10

Value: 4.5

Growth: 5.2

Quality: 5.8

Yield: 6.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

BayFirst

A-Score: 4.9/10

Value: 9.3

Growth: 7.3

Quality: 5.9

Yield: 4.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

3.01%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.40%

Flushing Financial Corporation - US3438731057

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on FFIC

1.c. Company Highlights

Weak Momentum

Higher Yield

Medium Volatility

Earnings Miss

Revenues Beats

Lower Quality

Average Quality

Stable Momentum

Earnings Beats

More Volatile

Lower Growth

Revenues Miss

Cheaper

2. Flushing Financial's Q3 Earnings: A Strong Performance Amidst Macroeconomic Uncertainty

Loan Portfolio and Credit Quality

Funding and Liquidity

Outlook and Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Community Bank

Expected Growth: 6.0%

7. Detailed Products

Commercial Banking

Retail Banking

Mortgage Banking

Wealth Management

Treasury Management

8. Flushing Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Flushing Financial Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.5$

Current Price

16.5$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA