FIRST QUARTER 20171
Flushing Financial Corporation (the “Company”) (Nasdaq:FFIC), the
parent holding company for Flushing Bank (the “Bank”), today
announced its financial results for the first quarter ended March
31, 2017.
John R. Buran, President and Chief Executive
Officer, remarked, “The positive momentum we saw at the end of last
year carried over to a strong start in 2017. Loan growth of 3%
coupled with an uptick on the yield of loan originations and
purchases during the first quarter resulted in record net interest
income. Credit quality remains a Company strength as we recorded
minimal net charge offs and the percentage of non-performing assets
to total assets improved from December 31, 2016. We continue to be
well positioned for the future, as our loan pipeline totals over
$300 million at an average rate of 4.15% as of March 31, 2017.”
“We moved further ahead with our strategy of
enhancing operational scalability and efficiency by converting our
fifth branch to the Universal Banker model, which provides our
customers with cutting-edge technology and a higher-quality
experience, while allowing us to operate our branches with reduced
facilities and staffing costs. We sustained deposit growth, as
total deposits increased 4% for the quarter and 9% from March 31,
2016, while our core deposits increased 4% from both the linked
quarter and March 31, 2016.”
The Company retains its focus on maintaining
strong risk management practices, including conservative
underwriting standards and improving yields to achieve desired
risk-adjusted returns.
___________________________________________
1 Core diluted earnings per common share
(“core diluted EPS”), core ROAE and core ROAA are not Generally
Accepted Accounting Principle (“GAAP”) measures.
For a GAAP to non-GAAP reconciliation of core
diluted EPS, core ROAE and core ROAA, refer to the table entitled
“Reconciliation of Non-GAAP Financial Measures.”
- In the first quarter, $238.9 million of multi-family,
commercial real estate, and commercial business loans were
originated and purchased, representing 89.6% of all originations
while maintaining conservative loan-to-values, debt coverage
ratios, and increasing yield.
- The average interest rate obtained for first quarter
originations and purchases improved to 3.85% compared to 3.81% for
the linked quarter and 3.77% for 1Q16.
- The average rate of mortgage loan applications in the pipeline
totaled 4.15% at March 31, 2017 as compared to 4.20% at December
31, 2016, and 4.03% at March 31, 2016.
- Multi-family (excluding underlying co-operative mortgages),
commercial real estate, and one-to-four family mixed-use property
mortgage loans originated during the first quarter of 2017 had a
low average loan-to-value ratio of 49.7% and an average debt
coverage ratio of 176%
- Monitor and enhance due diligence to realize strategically
favorable multi-family and commercial real estate concentration
levels.
As in prior years, the first quarter results
include seasonal non-interest expenses related to annual restricted
stock awards for employees and directors along with increased
payroll taxes. The seasonal items increased non-interest expense by
approximately $3 million, or $0.06 per diluted common share. The
restricted stock awards also affected the Company’s tax rate by
reducing the tax rate to approximately 30%. We anticipate an annual
tax rate of approximately 35% for 2017.
Mr. Buran concluded, “Overall, we remain well
capitalized and positioned to deliver profitable growth and
long-term value to our shareholders as we continue to execute on
our strategic objectives.”
Summary of Strategic
Objectives
- Increase core deposits and continue to improve funding mix
- Increase net interest income by leveraging loan pricing
opportunities
- Enhance core earnings power by managing net interest margin and
improving scalability and efficiency
- Manage credit risk
- Maintain well capitalized levels under all stress test
scenarios
Earnings Summary:
Quarter ended March 31, 2017 (1Q17) compared to
the quarters ended March 31, 2016 (1Q16) and December 31, 2016
(4Q16).
March 31, 2017 compared to December 31, 2016
(“QoQ”) March 31, 2017 compared to March 31, 2016 (“YoY”).
Net Interest Income
Net interest income for 1Q17 improved to $43.4
million, an increase of 5.5% YoY and 2.5% QoQ.
- Net interest margin of 2.95%, decreased 5bpsYoY and decreased
1bp QoQ
- Net interest spread of 2.84%, decreased 5bps YoY but remains
unchanged QoQ
- Net interest income includes prepayment penalty income from
loans and securities of $1.1 million in 1Q17 compared with $2.2
million in 1Q16 and $1.6 million in 4Q16, and recovered interest
from nonaccrual loans of $0.5 million in 1Q17, compared with $0.1
million in 1Q16 and $0.6 million in 4Q16
- Excluding prepayment penalty income from loans and securities
and recovered interest from nonaccrual loans, the yield on
interest-earning assets would have been 3.80% in both 1Q17 and 1Q16
and 3.77% in 4Q16, and the net interest margin would have improved
to 2.85% in 1Q17, compared with 2.83% in 1Q16 and 2.81% in
4Q16
- Average balance of total interest-earning assets of $5,873.8
million increased $383.1 million, or 7.0% YoY and $156.5 million,
or 2.7% QoQ
- Yield on interest-earning assets of 3.90% decreased 6bps YoY
and decreased 2bps QoQ
- Cost of interest-bearing liabilities of 1.06% decreased 1bp YoY
and decreased 2bps QoQ, driven by an improvement in our funding
mix
- Cost of funds of 1.01% a decrease of 1bp YoY but remains
unchanged QoQ
Non-interest Income
Non-interest income for 1Q17 was $3.7 million,
an increase of $1.1 million, or 45.2% YoY, but a decrease of $11.7
million, or 76.1% QoQ, largely driven by a decrease of $14.2
million from the net gain on sale of buildings in 4Q16.
- The 1Q17 includes a gain from life insurance proceeds of $1.2
million compared to proceeds of $0.4 million in 1Q16 and $2,000 in
4Q16.
- Losses from fair value adjustments decreased in 1Q17 to $0.4
million which was a reduction of $0.6 million from 1Q16 and $0.1
million from 4Q16.
Non-interest Expense
Non-interest expense for 1Q17 was $29.6 million,
an increase of $1.1 million, or 3.7% YoY, and a decrease of $5.8
million, or 16.4% QoQ, largely driven by a decrease of $8.3 million
relating to a non-recurring prepayment penalty in 4Q16.
- Salaries and benefits increased $0.8 million YoY primarily due
to annual salary increases and additions in staffing and increased
$1.3 million QoQ due to annual salary increases, annual restricted
stock unit awards to employees and increased payroll taxes
partially offset by a decline in other stock-based compensation
costs because of a decrease in the Company’s stock price
- The first quarter of each year includes the impact of annual
grants of employee and director restricted stock unit awards;
restricted stock expense totaled $3.3 million in 1Q17 compared to
$3.0 million in 1Q16 and $0.7 million in 4Q16
- Non-interest expense (excluding: salaries and benefits expense,
director restricted stock unit awards, prepayment penalty on
borrowings and net gain/losses on sale of OREO) totaled $11.3
million in 1Q17 and 1Q16 but was an increase of $0.3 million, or
3.1% QoQ
- The efficiency ratio improved to 64.0% in 1Q17 from 64.5% in
1Q16 but increased from 59.6% in 4Q16, primarily driven by annual
grants of restricted stock awards
Provision for Income Taxes
The provision for income taxes for 1Q17 was $5.3
million, a decrease of $0.4 million YoY and $2.9 million QoQ.
- Pre-tax income increased by $2.3 million, or 15.4% YoY and
decreased $4.9 million, or 21.8% QoQ
- The effective tax rates were 30.0% in 1Q17, 37.0% in 1Q16 and
36.2% in 4Q16
- The improvement in the Company’s effective tax rate was
primarily due to a change in 1Q17 to the accounting treatment of
deductible stock compensation expense from prior years; in prior
years the tax impact of deductible stock compensation expense
flowed through additional paid-in-capital and did not have an
impact of the Company’s effective tax rate
- Deductible stock compensation is required to be treated, for
tax purposes, as a discrete tax item in the period the shares vest;
our stock awards generally vest in the first quarter, therefore we
anticipate the Company’s effective tax rate to increase to
approximately 36.0% in the second quarter of 2017 and be
approximately 35% for the full year
- Exclusive of the deductible stock compensation expense the
effective tax rate for 1Q17 would have been approximately 36.0%
which would reduce both GAAP and core EPS by $0.03
Financial Condition
Summary:
Loans:
- Net loans were $4,952.4 million reflecting an increase of 2.9%
QoQ (not annualized) and 11.6% YoY as we continue to focus on the
origination of multi-family, commercial real estate and commercial
business loans with a full banking relationship
- Loan originations and purchases of multi-family, commercial
real estate and commercial business loans totaled $238.9 million
for the quarter, or 89.6% of loan production
- Loan pipeline totaled $303.1 million at March 31, 2017,
compared to $310.9 million at December 31, 2016 and $436.5 million
at March 31, 2016
- The loan-to-value ratio on our portfolio of real estate
dependent loans as of March 31, 2017 totaled 40.3%.
The following table shows the average rate
received from loan originations and purchases for the periods
indicated:
|
|
For the three months ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
Loan
type |
|
2017 |
|
2016 |
|
2016 |
Mortgage loans |
|
3.78 |
% |
|
3.70 |
% |
|
3.78 |
% |
Non-mortgage loans |
|
4.02 |
% |
|
4.05 |
% |
|
3.73 |
% |
Total loans |
|
3.85 |
% |
|
3.81 |
% |
|
3.77 |
% |
Credit Quality
- Non-performing loans totaled $18.5 million, a decrease of $2.9
million, or 13.5%, from $21.4 million at December 31, 2016
- Classified assets totaled $47.8 million, an increase of $3.8
million, or 8.7%, from $44.0 million at December 31, 2016,
primarily due to an increase in substandard taxi medallion loans,
partially offset by reductions in non-performing assets
- Loans classified as troubled debt restructured totaled $17.3
million, a decrease of $0.2 million, or 1.0%, from $17.4 million at
December 31, 2016
- We anticipate continued low loss content in the portfolio, as
our strong underwriting standards coupled with our practice of
obtaining updated appraisals and recording charge-offs early in the
delinquency process has resulted in a 38.3% average loan-to-value
for non-performing loans collateralized by real estate at March 31,
2017
- No provision for loan losses was recorded in the first quarter
of 2017 or all of 2016 due to continued strong credit quality
Capital Management
- The Company and Bank are subject to the same regulatory
requirements and at March 31, 2017, both were well capitalized
under all regulatory requirements
- During 1Q17, stockholders’ equity increased $11.5 million, or
2.2%, to $525.4 million due to net income of $12.3 million and an
increase in other comprehensive income, partially offset by the
declaration and payment of dividends on the Company’s common
stock
- As of March 31, 2017, up to 495,905 shares may be repurchased
under the current authorized stock repurchase program, which has no
expiration or maximum dollar limit; there were no purchases in
1Q17
- Book value per common share increased to $18.24 at March 31,
2017, from $17.95 at December 31, 2016 and $16.83 at March 31,
2016
- Tangible book value per common share, a non-GAAP measure,
increased to $17.69 at March 31, 2017, from $17.40 at December 31,
2016 and $16.29 at March 31, 2016
About Flushing Financial
Corporation
Flushing Financial Corporation is the holding
company for Flushing Bank, a New York State-chartered commercial
bank insured by the Federal Deposit Insurance Corporation. The Bank
serves consumers, businesses, and public entities by offering a
full complement of deposit, loan, and cash management services
through its 19 banking offices located in Queens, Brooklyn,
Manhattan, and Nassau County. The Bank also operates an online
banking division, iGObanking.com®, which offers competitively
priced deposit products to consumers nationwide.
Additional information on Flushing Financial
Corporation may be obtained by visiting the Company’s website at
http://www.flushingbank.com.
“Safe Harbor” Statement under the
Private Securities Litigation Reform Act of
1995: Statements in this Press Release
relating to plans, strategies, economic performance and trends,
projections of results of specific activities or investments and
other statements that are not descriptions of historical facts may
be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking information is inherently subject to
risks and uncertainties, and actual results could differ materially
from those currently anticipated due to a number of factors, which
include, but are not limited to, risk factors discussed in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2016 and in other documents filed by the Company with
the Securities and Exchange Commission from time to time.
Forward-looking statements may be identified by terms such as
“may”, “will”, “should”, “could”, “expects”, “plans”, “intends”,
“anticipates”, “believes”, “estimates”, “predicts”, “forecasts”,
“potential” or “continue” or similar terms or the negative of these
terms. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
The Company has no obligation to update these forward-looking
statements.
- Statistical Tables Follow
–
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(Dollars in thousands, except per share data) |
(Unaudited) |
|
|
|
|
For the three months ended |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Interest and Dividend Income |
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
50,885 |
|
|
$ |
49,973 |
|
|
$ |
47,558 |
|
Interest
and dividends on securities: |
|
|
|
|
|
|
Interest |
|
|
6,095 |
|
|
|
5,866 |
|
|
|
6,592 |
|
Dividends |
|
|
121 |
|
|
|
121 |
|
|
|
119 |
|
Other
interest income |
|
|
153 |
|
|
|
59 |
|
|
|
94 |
|
Total interest and dividend income |
|
|
57,254 |
|
|
|
56,019 |
|
|
|
54,363 |
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
Deposits |
|
|
8,980 |
|
|
|
8,760 |
|
|
|
7,973 |
|
Other
interest expense |
|
|
4,885 |
|
|
|
4,908 |
|
|
|
5,257 |
|
Total interest expense |
|
|
13,865 |
|
|
|
13,668 |
|
|
|
13,230 |
|
|
|
|
|
|
|
|
|
Net
Interest Income |
|
|
43,389 |
|
|
|
42,351 |
|
|
|
41,133 |
|
Provision
for loan losses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
Interest Income After Provision for Loan Losses |
|
|
43,389 |
|
|
|
42,351 |
|
|
|
41,133 |
|
|
|
|
|
|
|
|
|
Non-interest Income |
|
|
|
|
|
|
Banking
services fee income |
|
|
874 |
|
|
|
983 |
|
|
|
976 |
|
Net loss on
sale of securities |
|
|
- |
|
|
|
(839 |
) |
|
|
- |
|
Net gain on
sale of loans |
|
|
210 |
|
|
|
- |
|
|
|
341 |
|
Net gain on
sale of buildings |
|
|
- |
|
|
|
14,204 |
|
|
|
- |
|
Net loss
from fair value adjustments |
|
|
(378 |
) |
|
|
(509 |
) |
|
|
(987 |
) |
Federal
Home Loan Bank of New York stock dividends |
|
|
823 |
|
|
|
794 |
|
|
|
623 |
|
Gains from
life insurance proceeds |
|
|
1,161 |
|
|
|
2 |
|
|
|
411 |
|
Bank owned
life insurance |
|
|
795 |
|
|
|
701 |
|
|
|
695 |
|
Other
income |
|
|
204 |
|
|
|
90 |
|
|
|
481 |
|
Total non-interest income |
|
|
3,689 |
|
|
|
15,426 |
|
|
|
2,540 |
|
|
|
|
|
|
|
|
|
Non-interest Expense |
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
17,104 |
|
|
|
15,801 |
|
|
|
16,261 |
|
Occupancy
and equipment |
|
|
2,496 |
|
|
|
2,550 |
|
|
|
2,370 |
|
Professional services |
|
|
1,996 |
|
|
|
1,813 |
|
|
|
2,150 |
|
FDIC
deposit insurance |
|
|
326 |
|
|
|
613 |
|
|
|
904 |
|
Data
processing |
|
|
1,203 |
|
|
|
1,135 |
|
|
|
1,091 |
|
Depreciation and amortization |
|
|
1,165 |
|
|
|
1,187 |
|
|
|
1,032 |
|
Other real
estate owned/foreclosure expense |
|
|
351 |
|
|
|
476 |
|
|
|
153 |
|
Prepayment
penalty on borrowings |
|
|
- |
|
|
|
8,274 |
|
|
|
- |
|
Other
operating expenses |
|
|
4,923 |
|
|
|
3,526 |
|
|
|
4,536 |
|
Total non-interest expense |
|
|
29,564 |
|
|
|
35,375 |
|
|
|
28,497 |
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
|
17,514 |
|
|
|
22,402 |
|
|
|
15,176 |
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
|
|
|
|
|
|
Federal |
|
|
4,749 |
|
|
|
8,062 |
|
|
|
4,747 |
|
State and
local |
|
|
505 |
|
|
|
54 |
|
|
|
868 |
|
Total taxes |
|
|
5,254 |
|
|
|
8,116 |
|
|
|
5,615 |
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
12,260 |
|
|
$ |
14,286 |
|
|
$ |
9,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.50 |
|
|
$ |
0.33 |
|
Diluted
earnings per common share |
|
$ |
0.42 |
|
|
$ |
0.50 |
|
|
$ |
0.33 |
|
Dividends
per common share |
|
$ |
0.18 |
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION |
(Dollars in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
ASSETS |
|
|
|
|
|
|
Cash and
due from banks |
$ |
51,215 |
|
|
$ |
35,857 |
|
|
$ |
51,417 |
|
Securities
held-to-maturity: |
|
|
|
|
|
|
Other
securities |
|
36,406 |
|
|
|
37,735 |
|
|
|
7,885 |
|
Securities
available for sale: |
|
|
|
|
|
|
Mortgage-backed securities |
|
537,905 |
|
|
|
516,476 |
|
|
|
668,412 |
|
|
Other
securities |
|
346,238 |
|
|
|
344,905 |
|
|
|
372,851 |
|
Loans: |
|
|
|
|
|
|
|
Multi-family residential |
|
2,261,946 |
|
|
|
2,178,504 |
|
|
|
2,039,794 |
|
|
Commercial
real estate |
|
1,268,770 |
|
|
|
1,246,132 |
|
|
|
1,058,028 |
|
|
One-to-four
family ― mixed-use property |
|
561,355 |
|
|
|
558,502 |
|
|
|
571,846 |
|
|
One-to-four
family ― residential |
|
184,201 |
|
|
|
185,767 |
|
|
|
191,158 |
|
|
Co-operative apartments |
|
7,216 |
|
|
|
7,418 |
|
|
|
8,182 |
|
|
Construction |
|
12,413 |
|
|
|
11,495 |
|
|
|
7,472 |
|
|
Small
Business Administration |
|
10,519 |
|
|
|
15,198 |
|
|
|
14,701 |
|
|
Taxi
medallion |
|
18,832 |
|
|
|
18,996 |
|
|
|
20,757 |
|
|
Commercial
business and other |
|
632,503 |
|
|
|
597,122 |
|
|
|
531,322 |
|
|
Net
unamortized premiums and unearned loan fees |
|
16,836 |
|
|
|
16,559 |
|
|
|
15,281 |
|
|
Allowance
for loan losses |
|
(22,211 |
) |
|
|
(22,229 |
) |
|
|
(21,993 |
) |
|
|
|
Net loans |
|
4,952,380 |
|
|
|
4,813,464 |
|
|
|
4,436,548 |
|
Interest
and dividends receivable |
|
20,602 |
|
|
|
20,228 |
|
|
|
19,369 |
|
Bank
premises and equipment, net |
|
26,026 |
|
|
|
26,561 |
|
|
|
25,130 |
|
Federal
Home Loan Bank of New York stock |
|
57,384 |
|
|
|
59,173 |
|
|
|
53,368 |
|
Bank owned
life insurance |
|
129,824 |
|
|
|
132,508 |
|
|
|
114,405 |
|
Goodwill |
|
|
16,127 |
|
|
|
16,127 |
|
|
|
16,127 |
|
Other
assets |
|
57,378 |
|
|
|
55,453 |
|
|
|
47,555 |
|
|
|
|
Total assets |
$ |
6,231,485 |
|
|
$ |
6,058,487 |
|
|
$ |
5,813,067 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Due to
depositors: |
|
|
|
|
|
|
Non-interest bearing |
$ |
344,028 |
|
|
$ |
333,163 |
|
|
$ |
280,450 |
|
|
Interest-bearing: |
|
|
|
|
|
|
|
Certificate
of deposit accounts |
|
1,411,819 |
|
|
|
1,372,115 |
|
|
|
1,362,062 |
|
|
|
Savings
accounts |
|
254,822 |
|
|
|
254,283 |
|
|
|
268,057 |
|
|
|
Money
market accounts |
|
851,129 |
|
|
|
843,370 |
|
|
|
485,774 |
|
|
|
NOW
accounts |
|
1,487,120 |
|
|
|
1,362,484 |
|
|
|
1,610,932 |
|
|
|
|
Total interest-bearing
deposits |
|
4,004,890 |
|
|
|
3,832,252 |
|
|
|
3,726,825 |
|
Mortgagors'
escrow deposits |
|
61,828 |
|
|
|
40,216 |
|
|
|
56,612 |
|
Borrowed
funds |
|
1,227,852 |
|
|
|
1,266,563 |
|
|
|
1,190,789 |
|
Other
liabilities |
|
67,485 |
|
|
|
72,440 |
|
|
|
70,612 |
|
|
|
|
Total liabilities |
|
5,706,083 |
|
|
|
5,544,634 |
|
|
|
5,325,288 |
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Preferred
stock (5,000,000 shares authorized; none issued) |
|
- |
|
|
|
- |
|
|
|
- |
|
Common
stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595
shares |
|
|
|
|
|
|
issued at
March 31, 2017, December 31, 2016 and March 31, 2016;
28,811,160 |
|
|
|
|
|
|
shares,
28,632,904 shares and 28,986,566 shares outstanding at March 31,
2017, |
|
|
|
|
|
|
December
31, 2016 and March 31, 2016, respectively) |
|
315 |
|
|
|
315 |
|
|
|
315 |
|
Additional
paid-in capital |
|
215,501 |
|
|
|
214,462 |
|
|
|
211,735 |
|
Treasury
stock (2,719,435 shares, 2,897,691 shares and 2,544,029 shares
at |
|
|
|
|
|
|
March 31,
2017, December 31, 2016 and March 31, 2016, respectively) |
|
(51,224 |
) |
|
|
(53,754 |
) |
|
|
(46,307 |
) |
Retained
earnings |
|
367,944 |
|
|
|
361,192 |
|
|
|
320,725 |
|
Accumulated
other comprehensive income (loss), net of taxes |
|
(7,134 |
) |
|
|
(8,362 |
) |
|
|
1,311 |
|
|
|
|
Total stockholders'
equity |
|
525,402 |
|
|
|
513,853 |
|
|
|
487,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
6,231,485 |
|
|
$ |
6,058,487 |
|
|
$ |
5,813,067 |
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
|
SELECTED CONSOLIDATED FINANCIAL
DATA |
|
(Dollars in thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
|
At or for the three months ended |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
Per Share
Data |
|
|
|
|
|
|
|
Basic earnings per
share |
|
$ |
0.42 |
|
$ |
0.50 |
|
$ |
0.33 |
|
Diluted earnings per
share |
|
$ |
0.42 |
|
$ |
0.50 |
|
$ |
0.33 |
|
Average number of
shares outstanding for: |
|
|
|
|
|
|
|
Basic
earnings per common share computation |
|
|
29,019,070 |
|
|
28,849,783 |
|
|
29,096,663 |
|
Diluted
earnings per common share computation |
|
|
29,022,745 |
|
|
28,859,665 |
|
|
29,111,172 |
|
Shares outstanding |
|
|
28,811,160 |
|
|
28,632,904 |
|
|
28,986,566 |
|
Book value per common
share (1) |
|
$ |
18.24 |
|
$ |
17.95 |
|
$ |
16.83 |
|
Tangible book value per
common share (2) |
|
$ |
17.69 |
|
$ |
17.40 |
|
$ |
16.29 |
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
Stockholders'
equity |
|
$ |
525,402 |
|
$ |
513,853 |
|
$ |
487,779 |
|
Tangible stockholders'
common equity |
|
|
509,666 |
|
|
498,115 |
|
|
472,059 |
|
|
|
|
|
|
|
|
|
Average
Balances |
|
|
|
|
|
|
|
Total loans, net |
|
$ |
4,868,048 |
|
$ |
4,757,124 |
|
$ |
4,389,331 |
|
Total interest-earning
assets |
|
|
5,873,799 |
|
|
5,717,298 |
|
|
5,490,714 |
|
Total assets |
|
|
6,168,848 |
|
|
6,003,125 |
|
|
5,774,750 |
|
Total due to
depositors |
|
|
4,088,031 |
|
|
3,796,337 |
|
|
3,746,268 |
|
Total interest-bearing
liabilities |
|
|
5,254,640 |
|
|
5,077,893 |
|
|
4,959,563 |
|
Stockholders'
equity |
|
|
517,800 |
|
|
512,317 |
|
|
479,424 |
|
|
|
|
|
|
|
|
|
Performance
Ratios (3) |
|
|
|
|
|
|
|
Return on average
assets |
|
|
0.79 |
% |
|
0.95 |
% |
|
0.66 |
% |
Return on average
equity |
|
|
9.47 |
|
|
11.15 |
|
|
7.98 |
|
Yield on average
interest-earning assets |
|
|
3.90 |
|
|
3.92 |
|
|
3.96 |
|
Cost of average
interest-bearing liabilities |
|
|
1.06 |
|
|
1.08 |
|
|
1.07 |
|
Interest rate spread
during period |
|
|
2.84 |
|
|
2.84 |
|
|
2.89 |
|
Net interest
margin |
|
|
2.95 |
|
|
2.96 |
|
|
3.00 |
|
Non-interest expense to
average assets |
|
|
1.92 |
|
|
2.36 |
|
|
1.97 |
|
Efficiency ratio
(4) |
|
|
63.98 |
|
|
59.63 |
|
|
64.50 |
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
1.12 |
X |
|
1.13 |
X |
|
1.11 |
X |
|
|
|
|
|
|
|
|
(1) Calculated by dividing stockholders’ equity
by shares outstanding.
(2) Calculated by dividing tangible
stockholders’ common equity, a non-GAAP measure by shares
outstanding. Tangible stockholders’ common equity is stockholders’
equity less intangible assets (goodwill, net of deferred taxes).
See “Calculation of Tangible Stockholders’ Common Equity to
Tangible Assets”.
(3) Ratios are presented on an annualized basis, where
appropriate.
(4) Efficiency ratio, a non-GAAP measure, was
calculated by dividing non-interest expense (excluding OREO
expense, prepayment penalties from the extinguishment of debt and
the net gain/loss from the sale of OREO) by the total of net
interest income and non-interest income (excluding net gains and
losses from fair value adjustments, net gain and losses from the
sale of securities, life insurance proceeds, and sale of
buildings).
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
|
SELECTED CONSOLIDATED FINANCIAL
DATA |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
|
At or for the three |
|
|
At or for the |
|
|
At or for the three |
|
|
|
months ended |
|
|
year ended |
|
|
months ended |
|
|
|
March 31, 2017 |
|
|
December 31, 2016 |
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Selected
Financial Ratios and Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital
ratios (for Flushing Financial Corporation): |
|
|
|
|
|
|
|
|
|
Tier 1
capital |
|
$ |
550,055 |
|
|
$ |
539,228 |
|
|
|
$ |
497,698 |
|
|
Common
equity Tier 1 capital |
|
|
516,706 |
|
|
|
506,432 |
|
|
|
|
470,685 |
|
|
Total
risk-based capital |
|
|
647,266 |
|
|
|
636,457 |
|
|
|
|
519,691 |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage capital (well capitalized = 5%) |
|
|
8.92 |
% |
|
|
9.00 |
|
% |
|
|
8.65 |
|
% |
Common
equity Tier 1 risk-based capital (well capitalized = 6.5%) |
|
|
11.59 |
|
|
|
11.79 |
|
|
|
|
11.84 |
|
|
Tier 1
risk-based capital (well capitalized = 8.0%) |
|
|
12.34 |
|
|
|
12.56 |
|
|
|
|
12.52 |
|
|
Total
risk-based capital (well capitalized = 10.0%) |
|
|
14.52 |
|
|
|
14.82 |
|
|
|
|
13.07 |
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital
ratios (for Flushing Bank only): |
|
|
|
|
|
|
|
|
|
Tier 1
capital |
|
$ |
616,017 |
|
|
$ |
607,033 |
|
|
|
$ |
498,308 |
|
|
Common
equity Tier 1 capital |
|
|
616,017 |
|
|
|
607,033 |
|
|
|
|
498,308 |
|
|
Total
risk-based capital |
|
|
638,228 |
|
|
|
629,262 |
|
|
|
|
520,300 |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage capital (well capitalized = 5%) |
|
|
9.98 |
% |
|
|
10.12 |
|
% |
|
|
8.65 |
|
% |
Common
equity Tier 1 risk-based capital (well capitalized = 6.5%) |
|
|
13.80 |
|
|
|
14.12 |
|
|
|
|
12.51 |
|
|
Tier 1
risk-based capital (well capitalized = 8.0%) |
|
|
13.80 |
|
|
|
14.12 |
|
|
|
|
12.51 |
|
|
Total
risk-based capital (well capitalized = 10.0%) |
|
|
14.30 |
|
|
|
14.64 |
|
|
|
|
13.06 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital ratios: |
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
8.39 |
% |
|
|
8.40 |
|
% |
|
|
8.30 |
|
% |
Equity to
total assets |
|
|
8.43 |
|
|
|
8.48 |
|
|
|
|
8.39 |
|
|
Tangible
stockholders' common equity to tangible assets (1) |
|
|
8.20 |
|
|
|
8.24 |
|
|
|
|
8.14 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset quality: |
|
|
|
|
|
|
|
|
|
Non-accrual loans (2) |
|
$ |
17,858 |
|
|
$ |
21,030 |
|
|
|
$ |
22,101 |
|
|
Non-performing loans |
|
|
18,535 |
|
|
|
21,416 |
|
|
|
|
25,302 |
|
|
Non-performing assets |
|
|
18,535 |
|
|
|
21,949 |
|
|
|
|
29,904 |
|
|
Net
charge-offs/ (recoveries) |
|
|
18 |
|
|
|
(694 |
) |
|
|
|
(458 |
) |
|
|
|
|
|
|
|
|
|
|
|
Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
Non-performing loans to gross loans |
|
|
0.37 |
% |
|
|
0.44 |
|
% |
|
|
0.57 |
|
% |
Non-performing assets to total assets |
|
|
0.30 |
|
|
|
0.36 |
|
|
|
|
0.51 |
|
|
Allowance
for loan losses to gross loans |
|
|
0.45 |
|
|
|
0.46 |
|
|
|
|
0.49 |
|
|
Allowance
for loan losses to non-performing assets |
|
|
119.84 |
|
|
|
101.28 |
|
|
|
|
73.54 |
|
|
Allowance
for loan losses to non-performing loans |
|
|
119.84 |
|
|
|
103.80 |
|
|
|
|
86.92 |
|
|
|
|
|
|
|
|
|
|
|
|
Full-service customer
facilities |
|
|
19 |
|
|
|
19 |
|
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) See “Calculation of Tangible Stockholders’ Common Equity to
Tangible Assets”.
(2) Excludes performing non-accrual TDR loans.
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
|
NET INTEREST MARGIN |
|
(Dollars in thousands) |
|
(Unaudited) |
|
|
|
|
For the three months ended |
|
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
loans, net |
$ |
4,213,482 |
$ |
44,429 |
4.22 |
% |
$ |
4,140,511 |
$ |
44,219 |
4.27 |
% |
$ |
3,839,325 |
$ |
42,454 |
4.42 |
% |
Other
loans, net |
|
654,566 |
|
6,456 |
3.95 |
|
|
616,613 |
|
5,754 |
3.73 |
|
|
550,006 |
|
5,104 |
3.71 |
|
Total
loans, net (1) |
|
4,868,048 |
|
50,885 |
4.18 |
|
|
4,757,124 |
|
49,973 |
4.20 |
|
|
4,389,331 |
|
47,558 |
4.33 |
|
Taxable
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed |
|
|
|
|
|
|
|
|
|
|
|
|
securities |
|
529,942 |
|
3,367 |
2.54 |
|
|
514,527 |
|
3,002 |
2.33 |
|
|
658,764 |
|
4,174 |
2.53 |
|
Other
securities |
|
239,345 |
|
2,072 |
3.46 |
|
|
248,765 |
|
2,203 |
3.54 |
|
|
229,991 |
|
1,745 |
3.03 |
|
Total
taxable securities |
|
769,287 |
|
5,439 |
2.83 |
|
|
763,292 |
|
5,205 |
2.73 |
|
|
888,755 |
|
5,919 |
2.66 |
|
Tax-exempt securities: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
securities |
|
146,502 |
|
777 |
2.12 |
|
|
147,184 |
|
782 |
2.13 |
|
|
127,355 |
|
792 |
2.49 |
|
Total
tax-exempt securities |
|
146,502 |
|
777 |
2.12 |
|
|
147,184 |
|
782 |
2.13 |
|
|
127,355 |
|
792 |
2.49 |
|
Interest-earning deposits |
|
|
|
|
|
|
|
|
|
|
|
|
and
federal funds sold |
|
89,962 |
|
153 |
0.68 |
|
|
49,698 |
|
59 |
0.47 |
|
|
85,273 |
|
94 |
0.44 |
|
Total
interest-earning |
|
|
|
|
|
|
|
|
|
|
|
|
assets |
|
5,873,799 |
|
57,254 |
3.90 |
|
|
5,717,298 |
|
56,019 |
3.92 |
|
|
5,490,714 |
|
54,363 |
3.96 |
|
Other
assets |
|
295,049 |
|
|
|
|
285,827 |
|
|
|
|
284,036 |
|
|
|
Total
assets |
$ |
6,168,848 |
|
|
|
$ |
6,003,125 |
|
|
|
$ |
5,774,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts |
$ |
254,255 |
$ |
307 |
0.48 |
|
$ |
256,677 |
$ |
309 |
0.48 |
|
$ |
262,443 |
$ |
298 |
0.45 |
|
NOW
accounts |
|
1,568,267 |
|
2,207 |
0.56 |
|
|
1,370,618 |
|
2,028 |
0.59 |
|
|
1,621,779 |
|
1,922 |
0.47 |
|
Money
market accounts |
|
860,779 |
|
1,499 |
0.70 |
|
|
780,233 |
|
1,315 |
0.67 |
|
|
457,895 |
|
606 |
0.53 |
|
Certificate of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
1,404,730 |
|
4,940 |
1.41 |
|
|
1,388,809 |
|
5,081 |
1.46 |
|
|
1,404,151 |
|
5,121 |
1.46 |
|
Total due
to depositors |
|
4,088,031 |
|
8,953 |
0.88 |
|
|
3,796,337 |
|
8,733 |
0.92 |
|
|
3,746,268 |
|
7,947 |
0.85 |
|
Mortgagors' escrow |
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
54,616 |
|
27 |
0.20 |
|
|
58,151 |
|
27 |
0.19 |
|
|
49,947 |
|
26 |
0.21 |
|
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
4,142,647 |
|
8,980 |
0.87 |
|
|
3,854,488 |
|
8,760 |
0.91 |
|
|
3,796,215 |
|
7,973 |
0.84 |
|
Borrowings |
|
1,111,993 |
|
4,885 |
1.76 |
|
|
1,223,405 |
|
4,908 |
1.60 |
|
|
1,163,348 |
|
5,257 |
1.81 |
|
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
5,254,640 |
|
13,865 |
1.06 |
|
|
5,077,893 |
|
13,668 |
1.08 |
|
|
4,959,563 |
|
13,230 |
1.07 |
|
Non
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
|
330,215 |
|
|
|
|
331,232 |
|
|
|
|
273,937 |
|
|
|
Other liabilities |
|
66,193 |
|
|
|
|
81,683 |
|
|
|
|
61,826 |
|
|
|
Total
liabilities |
|
5,651,048 |
|
|
|
|
5,490,808 |
|
|
|
|
5,295,326 |
|
|
|
Equity |
|
517,800 |
|
|
|
|
512,317 |
|
|
|
|
479,424 |
|
|
|
Total
liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
equity |
$ |
6,168,848 |
|
|
|
$ |
6,003,125 |
|
|
|
$ |
5,774,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
/ |
|
|
|
|
|
|
|
|
|
|
|
|
net interest rate
spread |
|
$ |
43,389 |
2.84 |
% |
|
$ |
42,351 |
2.84 |
% |
|
$ |
41,133 |
2.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets / |
|
|
|
|
|
|
|
|
|
|
|
|
net interest
margin |
$ |
619,159 |
|
2.95 |
% |
$ |
639,405 |
|
2.96 |
% |
$ |
531,151 |
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning |
|
|
|
|
|
|
|
|
|
|
|
|
assets to
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
|
1.12 |
X |
|
|
1.13 |
X |
|
|
1.11 |
X |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loan interest income includes loan fee income (which
includes net amortization of deferred fees and costs, late charges,
and prepayment penalties) of approximately $0.6 million, $0.9
million and $1.5 million for the three months ended March 31, 2017,
December 31, 2016 and March 31, 2016, respectively.
(2) Interest income on tax-exempt securities does not include
the tax benefit of the tax-exempt securities.
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
DEPOSIT COMPOSITION |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 2017 vs. |
|
|
|
March 2017 vs. |
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
December, 2016 |
|
March 31, |
|
March 2016 |
|
|
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
2016 |
|
% Change |
|
|
2016 |
|
% Change |
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
344,028 |
|
$ |
333,163 |
|
$ |
320,060 |
|
$ |
317,112 |
|
3.3 |
% |
|
$ |
280,450 |
|
22.7 |
% |
Interest
bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate
of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
1,411,819 |
|
|
1,372,115 |
|
|
1,384,551 |
|
|
1,411,550 |
|
2.9 |
% |
|
|
1,362,062 |
|
3.7 |
% |
|
Savings
accounts |
|
254,822 |
|
|
254,283 |
|
|
258,058 |
|
|
260,528 |
|
0.2 |
% |
|
|
268,057 |
|
(4.9 |
%) |
|
Money
market accounts |
|
851,129 |
|
|
843,370 |
|
|
733,361 |
|
|
452,589 |
|
0.9 |
% |
|
|
485,774 |
|
75.2 |
% |
|
NOW
accounts |
|
1,487,120 |
|
|
1,362,484 |
|
|
1,296,475 |
|
|
1,453,540 |
|
9.1 |
% |
|
|
1,610,932 |
|
(7.7 |
%) |
|
|
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
4,004,890 |
|
|
3,832,252 |
|
|
3,672,445 |
|
|
3,578,207 |
|
4.5 |
% |
|
|
3,726,825 |
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
4,348,918 |
|
$ |
4,165,415 |
|
$ |
3,992,505 |
|
$ |
3,895,319 |
|
4.4 |
% |
|
$ |
4,007,275 |
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
LOANS |
(Dollars in thousands) |
(Unaudited) |
|
Loan Origination and Purchases |
|
|
|
For the three months |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
Multi-family
residential |
|
$ |
126,708 |
|
$ |
77,812 |
|
$ |
69,643 |
Commercial real
estate |
|
|
35,732 |
|
|
77,607 |
|
|
62,137 |
One-to-four family –
mixed-use property |
|
|
18,542 |
|
|
20,242 |
|
|
18,245 |
One-to-four family –
residential |
|
|
5,920 |
|
|
7,770 |
|
|
9,493 |
Construction |
|
|
2,544 |
|
|
9,738 |
|
|
1,687 |
Small Business
Administration |
|
|
641 |
|
|
1,662 |
|
|
6,001 |
Commercial business and
other |
|
|
76,484 |
|
|
87,761 |
|
|
62,034 |
Total |
|
$ |
266,571 |
|
$ |
282,592 |
|
$ |
229,240 |
|
|
|
|
|
|
|
Loan Composition |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 2017 vs. |
|
|
|
March 2017 vs. |
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
December 2016 |
|
March 31, |
|
March 2016 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
% Change |
|
|
2016 |
|
|
% Change |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
$ |
2,261,946 |
|
|
$ |
2,178,504 |
|
|
$ |
2,171,289 |
|
|
$ |
2,159,138 |
|
|
3.8 |
% |
|
|
$ |
2,039,794 |
|
|
10.9 |
% |
|
Commercial
real estate |
|
1,268,770 |
|
|
|
1,246,132 |
|
|
|
1,195,266 |
|
|
|
1,146,400 |
|
|
1.8 |
% |
|
|
|
1,058,028 |
|
|
19.9 |
% |
|
One-to-four
family ― |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
mixed-use
property |
|
561,355 |
|
|
|
558,502 |
|
|
|
555,691 |
|
|
|
566,702 |
|
|
0.5 |
% |
|
|
|
571,846 |
|
|
(1.8 |
%) |
|
One-to-four
family ― residential |
|
184,201 |
|
|
|
185,767 |
|
|
|
183,993 |
|
|
|
190,251 |
|
|
(0.8 |
%) |
|
|
|
191,158 |
|
|
(3.6 |
%) |
|
Co-operative apartments |
|
7,216 |
|
|
|
7,418 |
|
|
|
7,494 |
|
|
|
7,571 |
|
|
(2.7 |
%) |
|
|
|
8,182 |
|
|
(11.8 |
%) |
|
Construction |
|
12,413 |
|
|
|
11,495 |
|
|
|
11,250 |
|
|
|
9,899 |
|
|
8.0 |
% |
|
|
|
7,472 |
|
|
66.1 |
% |
|
Small
Business Administration |
|
10,519 |
|
|
|
15,198 |
|
|
|
14,339 |
|
|
|
14,718 |
|
|
(30.8 |
%) |
|
|
|
14,701 |
|
|
(28.4 |
%) |
|
Taxi
medallion |
|
18,832 |
|
|
|
18,996 |
|
|
|
20,536 |
|
|
|
20,641 |
|
|
(0.9 |
%) |
|
|
|
20,757 |
|
|
(9.3 |
%) |
|
Commercial
business and other |
|
632,503 |
|
|
|
597,122 |
|
|
|
564,972 |
|
|
|
564,084 |
|
|
5.9 |
% |
|
|
|
531,322 |
|
|
19.0 |
% |
|
Net
unamortized premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
unearned loan fees |
|
16,836 |
|
|
|
16,559 |
|
|
|
16,447 |
|
|
|
16,875 |
|
|
1.7 |
% |
|
|
|
15,281 |
|
|
10.2 |
% |
|
Allowance
for loan losses |
|
(22,211 |
) |
|
|
(22,229 |
) |
|
|
(21,795 |
) |
|
|
(22,198 |
) |
|
(0.1 |
%) |
|
|
|
(21,993 |
) |
|
1.0 |
% |
|
|
|
|
Net loans |
$ |
4,952,380 |
|
|
$ |
4,813,464 |
|
|
$ |
4,719,482 |
|
|
$ |
4,674,081 |
|
|
2.9 |
% |
|
|
$ |
4,436,548 |
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Activity |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
Loans
originated and purchased |
$ |
266,571 |
|
|
$ |
282,592 |
|
|
$ |
233,243 |
|
|
$ |
387,863 |
|
|
$ |
229,240 |
|
Principal
reductions |
|
(122,897 |
) |
|
|
(187,780 |
) |
|
|
(183,583 |
) |
|
|
(149,308 |
) |
|
|
(152,521 |
) |
Loans sold |
|
|
(4,874 |
) |
|
|
- |
|
|
|
(3,693 |
) |
|
|
(2,310 |
) |
|
|
(5,515 |
) |
Loan
charged-offs |
|
(179 |
) |
|
|
(370 |
) |
|
|
(541 |
) |
|
|
(101 |
) |
|
|
(147 |
) |
Foreclosures |
|
|
- |
|
|
|
(138 |
) |
|
|
- |
|
|
|
- |
|
|
|
(408 |
) |
Net change
in deferred (fees) and costs |
|
277 |
|
|
|
112 |
|
|
|
(428 |
) |
|
|
1,594 |
|
|
|
(87 |
) |
Net change
in the allowance for loan losses |
|
18 |
|
|
|
(434 |
) |
|
|
403 |
|
|
|
(205 |
) |
|
|
(458 |
) |
|
Total loan
activity |
$ |
138,916 |
|
|
$ |
93,982 |
|
|
$ |
45,401 |
|
|
$ |
237,533 |
|
|
$ |
70,104 |
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
NON-PERFORMING ASSETS and NET
CHARGE-OFFS |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
Loans 90 Days Or More Past Due |
|
|
|
|
|
|
|
|
|
|
|
and Still
Accruing: |
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
574 |
|
|
$ |
792 |
|
Commercial
real estate |
|
|
75 |
|
|
|
- |
|
|
|
1,183 |
|
|
|
320 |
|
|
|
1,083 |
|
One-to-four
family - mixed-use property |
|
|
- |
|
|
|
386 |
|
|
|
470 |
|
|
|
635 |
|
|
|
743 |
|
One-to-four
family - residential |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
13 |
|
Construction |
|
|
602 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
570 |
|
|
Total |
|
|
677 |
|
|
|
386 |
|
|
|
1,653 |
|
|
|
1,542 |
|
|
|
3,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual Loans: |
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
|
1,354 |
|
|
|
1,837 |
|
|
|
1,649 |
|
|
|
3,162 |
|
|
|
3,518 |
|
Commercial
real estate |
|
|
1,462 |
|
|
|
1,148 |
|
|
|
1,157 |
|
|
|
2,299 |
|
|
|
3,295 |
|
One-to-four
family - mixed-use property |
|
|
3,328 |
|
|
|
4,025 |
|
|
|
4,534 |
|
|
|
6,005 |
|
|
|
5,519 |
|
One-to-four
family - residential |
|
|
7,847 |
|
|
|
8,241 |
|
|
|
8,340 |
|
|
|
8,406 |
|
|
|
8,861 |
|
Small
business administration |
|
|
58 |
|
|
|
1,886 |
|
|
|
2,132 |
|
|
|
185 |
|
|
|
201 |
|
Taxi
Medallion |
|
|
3,771 |
|
|
|
3,825 |
|
|
|
3,971 |
|
|
|
196 |
|
|
|
196 |
|
Commercial
business and other |
|
|
38 |
|
|
|
68 |
|
|
|
99 |
|
|
|
128 |
|
|
|
511 |
|
|
Total |
|
|
17,858 |
|
|
|
21,030 |
|
|
|
21,882 |
|
|
|
20,381 |
|
|
|
22,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Non-performing Loans |
|
|
18,535 |
|
|
|
21,416 |
|
|
|
23,535 |
|
|
|
21,923 |
|
|
|
25,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Non-performing Assets: |
|
|
|
|
|
|
|
|
|
|
Real estate
acquired through foreclosure |
|
|
- |
|
|
|
533 |
|
|
|
2,839 |
|
|
|
3,668 |
|
|
|
4,602 |
|
|
Total |
|
|
- |
|
|
|
533 |
|
|
|
2,839 |
|
|
|
3,668 |
|
|
|
4,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Non-performing Assets |
|
$ |
18,535 |
|
|
$ |
21,949 |
|
|
$ |
26,374 |
|
|
$ |
25,591 |
|
|
$ |
29,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing Assets to Total Assets |
|
|
0.30 |
% |
|
|
0.36 |
% |
|
|
0.44 |
% |
|
|
0.43 |
% |
|
|
0.51 |
% |
Allowance For Loan Losses to Non-performing
Loans |
|
|
119.8 |
% |
|
|
103.8 |
% |
|
|
92.6 |
% |
|
|
101.3 |
% |
|
|
86.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Charge-Offs (Recoveries) |
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
Multi-family residential |
|
$ |
(16 |
) |
|
$ |
(103 |
) |
|
$ |
79 |
|
|
$ |
(183 |
) |
|
$ |
29 |
|
Commercial
real estate |
|
|
(68 |
) |
|
|
- |
|
|
|
(11 |
) |
|
|
- |
|
|
|
- |
|
One-to-four
family – mixed-use property |
|
|
34 |
|
|
|
(520 |
) |
|
|
24 |
|
|
|
36 |
|
|
|
(173 |
) |
One-to-four
family – residential |
|
|
- |
|
|
|
40 |
|
|
|
- |
|
|
|
7 |
|
|
|
(299 |
) |
Small
Business Administration |
|
|
26 |
|
|
|
186 |
|
|
|
317 |
|
|
|
(42 |
) |
|
|
(31 |
) |
Taxi
Medallion |
|
|
54 |
|
|
|
142 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Commercial
business and other |
|
|
(12 |
) |
|
|
(179 |
) |
|
|
(6 |
) |
|
|
(23 |
) |
|
|
16 |
|
Total net loan charge-offs (recoveries) |
|
$ |
18 |
|
|
$ |
(434 |
) |
|
$ |
403 |
|
|
$ |
(205 |
) |
|
$ |
(458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Core Diluted EPS, Core ROAE, Core ROAA, and tangible book value
per common share are each non-GAAP measures used in this
release. A reconciliation to the most directly comparable GAAP
financial measures appears in tabular form at the end of this
release. The Company believes that these measures are useful
for both investors and management to understand the effects of
certain non-interest items and provide an alternative view of the
Company's performance over time and in comparison to the Company's
competitors. These measures should not be viewed as a
substitute for net income. The Company believes that tangible
book value per common share is useful for both investors and
management as these are measures commonly used by financial
institutions, regulators and investors to measure the capital
adequacy of financial institutions. The Company believes these
measures facilitate comparison of the quality and composition of
the Company's capital over time and in comparison to its
competitors. These measures should not be viewed as a
substitute for total shareholders' equity.
These non-GAAP measures have inherent
limitations, are not required to be uniformly applied and are not
audited. They should not be considered in isolation or as a
substitute for analysis of results reported under GAAP. These
non-GAAP measures may not be comparable to similarly titled
measures reported by other companies.
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
|
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
|
(Dollars in thousands, except per share data) |
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
GAAP income
before income taxes |
$ |
17,514 |
|
$ |
22,402 |
|
$ |
15,176 |
|
|
|
|
|
|
|
|
Net loss
from fair value adjustments |
|
378 |
|
|
509 |
|
|
987 |
|
|
Net loss on
sale of securities |
|
- |
|
|
839 |
|
|
- |
|
|
Gain from
life insurance proceeds |
|
(1,161 |
) |
|
(2 |
) |
|
(411 |
) |
|
Net gain on
sale of buildings |
|
- |
|
|
(14,204 |
) |
|
- |
|
|
Prepayment
penalty on borrowings |
|
- |
|
|
8,274 |
|
|
- |
|
|
|
|
|
|
|
|
Core income
before taxes |
|
16,731 |
|
|
17,818 |
|
|
15,752 |
|
|
|
|
|
|
|
|
Provision
for income taxes for core income |
|
5,020 |
|
|
6,227 |
|
|
6,041 |
|
|
|
|
|
|
|
|
Core net
income |
$ |
11,711 |
|
$ |
11,591 |
|
$ |
9,711 |
|
|
|
|
|
|
|
|
GAAP
diluted earnings per common share |
$ |
0.42 |
|
$ |
0.50 |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
Net loss
from fair value adjustments, net of tax |
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
Net loss on
sale of securities, net of tax |
|
- |
|
|
0.02 |
|
|
- |
|
|
Gain from
life insurance proceeds |
|
(0.04 |
) |
|
- |
|
|
(0.01 |
) |
|
Net gain on
sale of buildings, net of tax |
|
- |
|
|
(0.29 |
) |
|
- |
|
|
Prepayment
penalty on borrowings, net of tax |
|
- |
|
|
0.17 |
|
|
- |
|
|
|
|
|
|
|
|
Core
diluted earnings per common share* |
$ |
0.40 |
|
$ |
0.40 |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net
income, as calculated above |
$ |
11,711 |
|
$ |
11,591 |
|
$ |
9,711 |
|
|
Average
assets |
|
6,168,848 |
|
|
6,003,125 |
|
|
5,774,750 |
|
|
Average
equity |
|
517,800 |
|
|
512,317 |
|
|
479,424 |
|
|
Core return
on average assets** |
|
0.76 |
% |
|
0.77 |
% |
|
0.67 |
% |
|
Core return
on average equity** |
|
9.05 |
% |
|
9.05 |
% |
|
8.10 |
% |
|
|
|
|
|
|
|
*Core
diluted earnings per common share may not foot due to
rounding. |
|
**Ratios
are calculated on an annualized basis. |
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIES |
CALCULATION OF TANGIBLE
STOCKHOLDERS’ |
COMMON EQUITY to TANGIBLE ASSETS |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
March 31, |
December 31, |
March 31, |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
2016 |
|
Total
Equity |
|
|
$ |
525,402 |
|
$ |
513,853 |
|
$ |
487,779 |
|
Less: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
(16,127 |
) |
|
(16,127 |
) |
|
(16,127 |
) |
|
Intangible
deferred tax liabilities |
|
|
|
391 |
|
|
389 |
|
|
407 |
|
|
|
Tangible
Stockholders' Common Equity |
$ |
509,666 |
|
$ |
498,115 |
|
$ |
472,059 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
|
$ |
6,231,485 |
|
$ |
6,058,487 |
|
$ |
5,813,067 |
|
Less: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
(16,127 |
) |
|
(16,127 |
) |
|
(16,127 |
) |
|
Intangible
deferred tax liabilities |
|
|
|
391 |
|
|
389 |
|
|
407 |
|
|
|
Tangible
Assets |
|
|
$ |
6,215,749 |
|
$ |
6,042,749 |
|
$ |
5,797,347 |
|
|
|
|
|
|
|
|
|
|
Tangible
Stockholders' Common Equity to Tangible Assets |
|
8.20 |
% |
|
8.24 |
% |
|
8.14 |
% |
|
|
|
|
|
|
|
|
|
Susan K. Cullen
Senior Executive Vice President, Treasurer and Chief Financial Officer
Flushing Financial Corporation
(718) 961-5400
Flushing Financial (NASDAQ:FFIC)
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