Flushing Financial reported fourth-quarter core earnings per share of $0.32, below the Zacks Consensus Estimate of $0.35 and up from $0.14 in the year-ago period. GAAP EPS came in at $0.12, reflecting non-core charges, compared with $0.10 a year ago. While net interest income showed modest sequential growth, fee income declined 3% quarter-over-quarter, and provision expense rose 15 basis points, pressuring overall profitability in the quarter.

The company’s net interest margin widened by 4 basis points to 2.68%, driven by a favorable shift in deposit mix and lower short-term funding costs. Core NIM, which excludes certain hedging effects, reached 2.66%, up 3 basis points sequentially. Management highlighted that the margin expansion contributed approximately $1.5 million of additional net interest income in Q4 compared to the third quarter.

Noninterest-bearing deposits remained stable at $2.1 billion, while interest-bearing balances grew 2% sequentially to $4.3 billion, reflecting customer preference for higher-yield accounts. Total deposits rose 1% from year-end 2024. The bank’s CET1 capital ratio improved to 10.8%, up 20 basis points from September, as retained earnings supported capital accumulation. Management reiterated plans to maintain a dividend payout ratio near 30% of core earnings.