FFIC - Flushing Financial: Disappointing Earnings But Loan Book Remains Strong

2024-07-02 10:30:00 ET

Summary

• Flushing Financial's earnings are under pressure due to increased interest expenses and loss on fair value adjustments in Q1 2024.
• Despite weak Q1 results, the bank's loan book quality remains strong with low LTV ratios and manageable past due loans.
• The bank is expected to see an increase in net interest income as loans are repriced, leading to a potential positive impact on the bottom line.

Introduction

I still think there are interesting opportunities in the regional banking sector, and one of the smaller banks I have a long position in is Flushing Financial ( FFIC ), a New York focused regional bank. Although the bank’s earnings are weaker than I would like, I have a long-term outlook for my investments and in the regional banking sector I’m mainly interested in the quality of the loan book to make sure the vast majority of the loans continue to perform as expected....

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