Flushing Financial Q1 EPS Turns Positive; Deposits Up 15%, NIM +16bps, Pipeline +55%
Flushing Financial reported 1Q26 GAAP EPS of $0.17 and Core EPS of $0.29, reversing a $0.29 GAAP loss in 1Q25. Noninterest bearing deposits rose 15% to $995.5M, NIM expanded 16 bps to 2.67%, loan pipeline jumped 55% to $327.4M, and OceanFirst merger nears completion.
1. Q1 Financial Results
Flushing Financial delivered GAAP EPS of $0.17 and Core EPS of $0.29 in 1Q26, compared to a GAAP loss of $0.29 and Core EPS of $0.23 in 1Q25. Net income reached $5.8 million, up 238% year-over-year, supported by sustained net interest income growth and improved funding mix.
2. Deposit and Margin Trends
Noninterest bearing deposits grew 15% to $995.5 million while average total deposits held steady at $7.5 billion. Cost of funds declined by 13 basis points from the prior quarter, driving GAAP NIM expansion of 16 basis points to 2.67% and core NIM expansion of 17 basis points to 2.66%.
3. Loan Pipeline and Credit Quality
Average loans decreased 2.0% year-over-year to $6.5 billion, reflecting disciplined pricing and credit standards, while the loan pipeline surged 54.9% to $327.4 million. NPAs rose to 0.77% of assets, but net charge-offs fell to 3 basis points and allowance coverage improved to 0.68% of loans.
4. Merger Update
The pending transaction with OceanFirst Financial Corp. remains on track for closing, positioning the combined entity to leverage expanded capabilities and deliver enhanced services across its markets and communities.