Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC),
the parent holding company for Flushing Bank (the “Bank”), today
announced its financial results for the second quarter ended June
30, 2019.
John R. Buran, President and Chief Executive
Officer, stated, “We are pleased to report quarterly earnings
growth as diluted earnings per share rose 48% from 1Q19, while core
earnings rose 27%. Both results were down from 2Q18, as net
interest margin pressure returned, driven by the inversion of the
yield curve, coupled with increased competitive pressure on our
deposit business.”
“During the quarter, we experienced more robust
loan growth as closings increased 50% from 1Q19. Total loan
closings for the quarter amounted to $296 million. In addition, the
loan pipeline increased over 50% to $424 million during the same
period, our largest pipeline since the first quarter of 2016. The
mortgage pipeline has an average yield of 4.63%, which is 21bps
greater than the 2Q19 core yield of total loans. Due to the size of
the pipeline and our strong track record of closing loans in the
pipeline, we anticipate loan growth will accelerate in the second
half of 2019, resulting in full year loan growth in the mid-single
digit range.”
“We continued to diversify the loan portfolio
during the quarter, as we produced record C&I closings of $158
million, representing 53% of 2Q19 loan closings. These loans are
generally floating rate loans and represented 18% of total loans at
June 30, 2019, compared to 15% at June 30, 2018. We also recognized
improved closing levels for our mortgage loans as they increased
$71 million QoQ.”
“The net interest margin compressed 12bps QoQ,
with both sides of the balance sheet contributing to the
compression. We continue to experience pricing pressure due to the
inverted yield curve at the pricing point for our loan tenor. In
the past, we have articulated our strategy of focusing on rate over
volume. During 2Q19, we modified our position and rates due to
market conditions. The increase in the cost of funds was primarily
driven by pricing pressure on our retail and municipal deposits, as
competition from traditional bank and non-bank competitors remains
very strong. Although the rates paid on retail and municipal
deposits have increased, they remain less expensive than
alternative funding sources, including wholesale funding. Given an
inverted yield curve, we continue to proactively mitigate the NIM
compression through the closing of C&I floating rate loans and
our swap strategy. In June 2019, we entered into an additional $100
million of swaps on borrowings bringing total swaps on borrowings
to $542 million at the end of 2Q19. Our long-term goal is to move
towards being more interest rate neutral which allows us to perform
better in all interest rate environments.”
Mr. Buran continued, “We remain focused on
preserving strong risk management practices, including conservative
underwriting standards and improving yields to achieve improved
risk-adjusted returns. We continue to focus on increasing the
amount of direct loan business, as approximately 63% of 2Q19 loan
closings were non-brokered loans.”
- Multi-family (excluding underlying co-operative mortgages),
commercial real estate, and one-to-four family mixed-use property
mortgage loans originated during 2Q19 had a yield of 4.60%, which
is above our core yield of total loans for the same period, a
decrease of 41bps from 5.01% for 1Q19 and an increase of 33bps from
4.27% for 2Q18. As noted, the decrease in the yield of 2Q19
originations was due to the inverted yield curve. We maintained our
asset quality as these loans had an average loan-to-value ratio of
38% and an average debt coverage ratio of 192%.
- We remain committed to our strategy of focusing on C&I
loans, commercial real estate loans and multi-family. In the 2Q19,
these loan closings represented 53%, 14%, and 19%, respectively, of
all originations, which were made while maintaining conservative
loan-to-value and debt coverage ratios.
Mr. Buran concluded, “Overall, we remain well
capitalized and well positioned to deliver profitable growth and
long-term value to our shareholders as we continue to execute our
strategic objectives.”
Summary of Strategic
Objectives
- Manage cost of funds and continue to improve funding mix
- Increase interest income by leveraging loan pricing
opportunities and portfolio mix
- Enhance core earnings power by improving scalability and
efficiency
- Manage credit risk
- Maintain well capitalized levels under all stress test
scenarios
Earnings Summary:
Net Interest Income
Net interest income for 2Q19 was $40.0 million,
a decrease of $2.6 million, or 6.1% YoY (2Q19 compared to 2Q18) and
$1.8 million, or 4.3% QoQ (2Q19 compared to 1Q19).
- Net interest margin of 2.45%, decreased 32bps YoY and 12bps
QoQ
- Net interest spread of 2.23%, decreased 38bps YoY and 13bps
QoQ
- Yield on average interest-earning assets of 4.26%, increased
15bps YoY but decreased 3bps QoQ
- Cost of average interest-bearing liabilities of 2.03%,
increased 53bps YoY and 10bps QoQ
- Cost of funds of 1.90%, increased 50bps YoY and 10bps QoQ,
driven by increases in rates paid on deposits and short-term
borrowings resulting from increases in the Fed Funds
rate
- Average balance of total interest-earning assets of $6,540.1
million, increased $358.9 million, or 5.8%, YoY and $19.0 million,
or 0.3%, QoQ
- Net interest income includes prepayment penalty income from
loans and securities totaling $1.1 million in 2Q19, $0.8 million in
1Q19 and $1.6 million in 2Q18; recovered interest from delinquent
loans of $0.5 million in 2Q19, $0.7 million in 1Q19 and $0.2
million in 2Q18; and losses from fair value adjustments on
qualifying hedges totaling $0.8 million in 2Q19, $0.6 million in
1Q19 and none in 2Q18
- Absent all above items noted in the preceding bullet, the yield
on interest-earning assets was 4.21% in 2Q19, a decrease of 3bps
from 1Q19 and 22bps from 2Q18 and the net interest margin was 2.40%
in 2Q19, which decreased 12bps from 1Q19 and 26bps from 2Q18
Provision for loan losses
The Company recorded a provision of $1.5 million
compared to $1.0 million in 1Q19 and none in 2Q18.
- 2Q19 includes charge-offs from one commercial business loan
relationship, after charge-off the remaining book balance for this
relationship was $0.2 million, equaling the value of the underlying
collateral
- Recorded net charge-offs of $1.0 million in 2Q19, $0.9 million
in 1Q19, and $0.3 million in 2Q18
Non-interest Income
Non-interest income for 2Q19 was $2.5 million, a
decrease of $0.7 million YoY, but an increase of $1.5 million
QoQ
- Non-interest income included net gain on sale of assets of $0.8
million in 2Q19, net gain on sale of loans of $0.1 million in each
of 2Q19 and 1Q19 and $0.4 million in 2Q18
- Additionally, non-interest income included net losses from fair
value adjustments of $2.0 million in 2Q19, $2.1 million in 1Q19,
and $0.3 million in 2Q18
- Absent all above items, non-interest income was $3.5 million,
an increase of $0.5 million, or 16.9%, YoY, and $0.6 million, or
19.0%, QoQ, resulting primarily from a capital gain of $0.5 million
recorded in 2Q19 from the redemption of $1.2 million in assets held
in a rabbi trust
Non-interest Expense
Non-interest expense for 2Q19 was $27.2 million,
a decrease of $0.2 million, or 0.9% YoY, and $5.3 million, or 16.2%
QoQ.
- Non-interest expense improved QoQ, primarily due to 1Q19
including seasonal and one-time expenses
- The ratio of non-interest expense to average assets improved to
1.58% in 2Q19 compared to 1.89% in 1Q19 and 1.69% in 2Q18
- The efficiency ratio was 61.1% in 2Q19 compared to 70.4% in
1Q19 and 59.6% in 2Q18
Provision for Income Taxes
The provision for income taxes in 2Q19 was $3.3
million, a decrease of $1.2 million, or 27.1% YoY but an increase
of $1.0 million, or 43.1% QoQ.
- Pre-tax income decreased by $4.6 million, or 24.9% YoY but
increased by $4.5 million, or 47.8% QoQ
- The effective tax rates were 23.7% in 2Q19, 24.5% in 1Q19 and
24.4% in 2Q18
Financial Condition
Summary:
Loans:
- Net loans held for investment were $5,616.9 million reflecting
an increase of 0.9% QoQ (not annualized) and 5.7% from June 30,
2018, as we continue to focus on the origination of multi-family,
commercial real estate and commercial business loans with a full
relationship
- Loan closings of multi-family, commercial real estate and
commercial business loans totaled $254.4 million for 2Q19, or 85.8%
of loan production
- Loan pipeline was $423.9 million at June 30, 2019, compared to
$274.8 million at March 31, 2019 and $322.9 million at June 30,
2018
- The loan-to-value ratio on our portfolio of real estate
dependent loans as of June 30, 2019 totaled 38.4%
The following table shows the weighted average rate received
from loan closings for the periods indicated:
|
For the three months ended |
|
June 30, |
|
March 31, |
|
June 30, |
Loan
type |
2019 |
|
2019 |
|
2018 |
Mortgage loans |
4.75% |
|
5.14% |
|
4.40% |
Non-mortgage loans |
5.01% |
|
4.96% |
|
4.90% |
Total loans |
4.89% |
|
5.02% |
|
4.57% |
|
|
|
|
|
|
Credit Quality:
- Non-performing loans totaled $15.7 million, a decrease of $0.6
million, or 3.4%, from $16.3 million at December 31, 2018
- Non-performing assets totaled $16.0 million, a decrease of $0.3
million, or 1.9%, from $16.3 million at December 31, 2018
- Classified assets totaled $31.9 million, a decrease of $14.6
million, or 31.4%, from $46.5 million at December 31, 2018
- Loans classified as troubled debt restructured (TDR) totaled
$6.3 million, a decrease of $2.1 million, or 24.8%, from $8.4
million at December 31, 2018
- 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 35.4% average loan-to-value
for non-performing loans collateralized by real estate
- Net charge-offs totaled $1.9 million during the six months
ended June 30, 2019
Capital Management:
- The Company and Bank, at June 30, 2019, were both well
capitalized under all applicable regulatory requirements
- Through 2Q19, stockholders’ equity increased $15.9 million, or
2.9%, to $565.4 million due to net income of $17.6 million and an
improvement in the fair value of the securities portfolio,
partially offset by the declaration and payment of dividends on the
Company’s common stock
- During 2Q19, the Company did not repurchase any shares; as of
June 30, 2019, up to 467,211 shares remained subject to repurchase
under the authorized stock repurchase program, which has no
expiration or maximum dollar limit
- Book value per common share increased to $20.06 at June 30,
2019, from $19.64 at December 31, 2018 and tangible book value per
common share, a non-GAAP measure, increased to $19.50 at June 30,
2019, from $19.07 at December 31, 2018
Conference Call Information:
- John R. Buran, President and Chief Executive Officer, and Susan
K. Cullen, Senior Executive Vice President and Chief Financial
Officer, will host a conference call on Wednesday, July 24, 2019 at
9:30 AM (ET) to discuss the Company’s strategy and results for the
second quarter
- Dial-in for Live Call: 1-877-509-5836
- Webcast:
https://services.choruscall.com/links/ffic190724.html
- Dial-in for Replay: 1-877-344-7529
- Replay Access Code: 10129655
- The conference call will be simultaneously webcast and
archived through 5:00 PM (ET) on July 24, 2020
About Flushing Financial Corporation
Flushing Financial Corporation (Nasdaq: FFIC) 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, professionals,
corporate clients, and public entities by offering a full
complement of deposit, loan, equipment finance, and cash management
services through its banking offices located in Queens, Brooklyn,
Manhattan, and on Long Island. As a leader in real estate lending,
the Bank’s experienced lending team creates mortgage solutions for
real estate owners and property managers both within and outside
the New York City metropolitan area. Flushing Bank is an Equal
Housing Lender. The Bank also operates an online banking division
consisting of iGObanking.com®, which offers competitively priced
deposit products to consumers nationwide, and BankPurely®, an
eco-friendly, healthier lifestyle community brand.
Additional information on Flushing Bank and
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, 2018 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”, “goals”, “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.
1 See the tables entitled “Reconciliation of
GAAP Earnings and Core Earnings” and “Reconciliation of GAAP Net
Interest Income and Net Interest Margin to Core Net Interest Income
and Net Interest Margin.”
- Statistical Tables Follow -
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(Dollars in thousands, except per share
data)(Unaudited)
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, |
|
March 31 |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend
Income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans |
|
$ |
62,273 |
|
|
$ |
62,330 |
|
|
$ |
57,322 |
|
|
$ |
124,603 |
|
|
$ |
112,339 |
|
Interest and dividends on
securities: |
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
6,811 |
|
|
|
6,909 |
|
|
|
5,616 |
|
|
|
13,720 |
|
|
|
11,084 |
|
Dividends |
|
|
19 |
|
|
|
19 |
|
|
|
17 |
|
|
|
38 |
|
|
|
31 |
|
Other interest income |
|
|
472 |
|
|
|
555 |
|
|
|
338 |
|
|
|
1,027 |
|
|
|
625 |
|
Total interest and
dividend income |
|
|
69,575 |
|
|
|
69,813 |
|
|
|
63,293 |
|
|
|
139,388 |
|
|
|
124,079 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
22,827 |
|
|
|
21,469 |
|
|
|
14,788 |
|
|
|
44,296 |
|
|
|
26,898 |
|
Other interest expense |
|
|
6,739 |
|
|
|
6,541 |
|
|
|
5,865 |
|
|
|
13,280 |
|
|
|
11,932 |
|
Total interest
expense |
|
|
29,566 |
|
|
|
28,010 |
|
|
|
20,653 |
|
|
|
57,576 |
|
|
|
38,830 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income |
|
|
40,009 |
|
|
|
41,803 |
|
|
|
42,640 |
|
|
|
81,812 |
|
|
|
85,249 |
|
Provision for loan losses |
|
|
1,474 |
|
|
|
972 |
|
|
|
- |
|
|
|
2,446 |
|
|
|
153 |
|
Net Interest Income
After Provision for Loan Losses |
|
|
38,535 |
|
|
|
40,831 |
|
|
|
42,640 |
|
|
|
79,366 |
|
|
|
85,096 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Income |
|
|
|
|
|
|
|
|
|
|
Banking services fee
income |
|
|
1,059 |
|
|
|
973 |
|
|
|
1,000 |
|
|
|
2,032 |
|
|
|
1,948 |
|
Net loss on sale of
securities |
|
|
(15 |
) |
|
|
- |
|
|
|
- |
|
|
|
(15 |
) |
|
|
- |
|
Net gain on sale of loans |
|
|
114 |
|
|
|
63 |
|
|
|
421 |
|
|
|
177 |
|
|
|
158 |
|
Net gain on sale of
assets |
|
|
770 |
|
|
|
- |
|
|
|
- |
|
|
|
770 |
|
|
|
- |
|
Net loss from fair value
adjustments |
|
|
(1,956 |
) |
|
|
(2,080 |
) |
|
|
(267 |
) |
|
|
(4,036 |
) |
|
|
(367 |
) |
Federal Home Loan Bank of New
York stock dividends |
|
|
826 |
|
|
|
903 |
|
|
|
881 |
|
|
|
1,729 |
|
|
|
1,757 |
|
Life insurance proceeds |
|
|
- |
|
|
|
43 |
|
|
|
- |
|
|
|
43 |
|
|
|
776 |
|
Bank owned life insurance |
|
|
810 |
|
|
|
740 |
|
|
|
776 |
|
|
|
1,550 |
|
|
|
1,538 |
|
Other income |
|
|
843 |
|
|
|
301 |
|
|
|
357 |
|
|
|
1,144 |
|
|
|
558 |
|
Total non-interest
income |
|
|
2,451 |
|
|
|
943 |
|
|
|
3,168 |
|
|
|
3,394 |
|
|
|
6,368 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
15,668 |
|
|
|
19,166 |
|
|
|
15,291 |
|
|
|
34,834 |
|
|
|
33,746 |
|
Occupancy and equipment |
|
|
2,742 |
|
|
|
2,789 |
|
|
|
2,476 |
|
|
|
5,531 |
|
|
|
5,053 |
|
Professional services |
|
|
1,806 |
|
|
|
2,265 |
|
|
|
2,439 |
|
|
|
4,071 |
|
|
|
4,624 |
|
FDIC deposit insurance |
|
|
667 |
|
|
|
485 |
|
|
|
547 |
|
|
|
1,152 |
|
|
|
1,047 |
|
Data processing |
|
|
1,420 |
|
|
|
1,492 |
|
|
|
1,426 |
|
|
|
2,912 |
|
|
|
2,827 |
|
Depreciation and
amortization |
|
|
1,497 |
|
|
|
1,518 |
|
|
|
1,455 |
|
|
|
3,015 |
|
|
|
2,844 |
|
Other real estate
owned/foreclosure expense |
|
|
20 |
|
|
|
77 |
|
|
|
40 |
|
|
|
97 |
|
|
|
136 |
|
Net gain from sales of real
estate owned |
|
|
- |
|
|
|
- |
|
|
|
(27 |
) |
|
|
- |
|
|
|
(27 |
) |
Other operating expenses |
|
|
3,338 |
|
|
|
4,627 |
|
|
|
3,749 |
|
|
|
7,965 |
|
|
|
8,440 |
|
Total non-interest
expense |
|
|
27,158 |
|
|
|
32,419 |
|
|
|
27,396 |
|
|
|
59,577 |
|
|
|
58,690 |
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes |
|
|
13,828 |
|
|
|
9,355 |
|
|
|
18,412 |
|
|
|
23,183 |
|
|
|
32,774 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes |
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
2,981 |
|
|
|
1,943 |
|
|
|
3,311 |
|
|
|
4,924 |
|
|
|
5,918 |
|
State and local |
|
|
291 |
|
|
|
344 |
|
|
|
1,178 |
|
|
|
635 |
|
|
|
1,521 |
|
Total taxes |
|
|
3,272 |
|
|
|
2,287 |
|
|
|
4,489 |
|
|
|
5,559 |
|
|
|
7,439 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
10,556 |
|
|
$ |
7,068 |
|
|
$ |
13,923 |
|
|
$ |
17,624 |
|
|
$ |
25,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.37 |
|
|
$ |
0.25 |
|
|
$ |
0.48 |
|
|
$ |
0.61 |
|
|
$ |
0.88 |
|
Diluted earnings per common
share |
|
$ |
0.37 |
|
|
$ |
0.25 |
|
|
$ |
0.48 |
|
|
$ |
0.61 |
|
|
$ |
0.88 |
|
Dividends per common
share |
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION(Dollars in thousands, except per share
data)(Unaudited)
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
ASSETS |
|
|
|
|
|
|
Cash and due from
banks |
$ |
56,484 |
|
|
$ |
58,677 |
|
|
$ |
118,561 |
|
Securities
held-to-maturity: |
|
|
|
|
|
|
Mortgage-backed
securities |
|
7,944 |
|
|
|
7,949 |
|
|
|
7,953 |
|
|
Other
securities |
|
52,242 |
|
|
|
22,532 |
|
|
|
24,065 |
|
Securities
available for sale: |
|
|
|
|
|
|
Mortgage-backed
securities |
|
554,481 |
|
|
|
579,185 |
|
|
|
557,953 |
|
|
Other
securities |
|
254,172 |
|
|
|
266,839 |
|
|
|
264,702 |
|
Loans: |
|
|
|
|
|
|
Multi-family
residential |
|
2,263,875 |
|
|
|
2,256,447 |
|
|
|
2,269,048 |
|
|
Commercial real
estate |
|
1,524,693 |
|
|
|
1,529,001 |
|
|
|
1,542,547 |
|
|
One-to-four family
― mixed-use property |
|
582,264 |
|
|
|
582,049 |
|
|
|
577,741 |
|
|
One-to-four family
― residential |
|
184,024 |
|
|
|
188,615 |
|
|
|
190,350 |
|
|
Co-operative
apartments |
|
8,137 |
|
|
|
7,903 |
|
|
|
8,498 |
|
|
Construction |
|
58,503 |
|
|
|
54,933 |
|
|
|
50,600 |
|
|
Small Business
Administration |
|
14,511 |
|
|
|
15,188 |
|
|
|
15,210 |
|
|
Taxi
medallion |
|
3,555 |
|
|
|
3,891 |
|
|
|
4,539 |
|
|
Commercial
business and other |
|
983,573 |
|
|
|
935,297 |
|
|
|
877,763 |
|
|
Net unamortized
premiums and unearned loan fees |
|
15,278 |
|
|
|
15,422 |
|
|
|
15,188 |
|
|
Allowance for loan
losses |
|
(21,510 |
) |
|
|
(21,015 |
) |
|
|
(20,945 |
) |
|
|
|
Net loans |
|
5,616,903 |
|
|
|
5,567,731 |
|
|
|
5,530,539 |
|
Interest and
dividends receivable |
|
26,552 |
|
|
|
27,226 |
|
|
|
25,485 |
|
Bank premises and
equipment, net |
|
28,623 |
|
|
|
29,798 |
|
|
|
30,418 |
|
Federal Home Loan
Bank of New York stock |
|
63,029 |
|
|
|
51,182 |
|
|
|
57,282 |
|
Bank owned life
insurance |
|
157,604 |
|
|
|
131,794 |
|
|
|
131,788 |
|
Goodwill |
|
16,127 |
|
|
|
16,127 |
|
|
|
16,127 |
|
Other real estate
owned, net |
|
239 |
|
|
|
- |
|
|
|
- |
|
Right of Use
Asset |
|
42,557 |
|
|
|
44,033 |
|
|
|
- |
|
Other assets |
|
68,677 |
|
|
|
64,377 |
|
|
|
69,303 |
|
|
|
|
Total assets |
$ |
6,945,634 |
|
|
$ |
6,867,450 |
|
|
$ |
6,834,176 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Due to
depositors: |
|
|
|
|
|
|
|
Non-interest
bearing |
$ |
413,813 |
|
|
$ |
401,064 |
|
|
$ |
413,747 |
|
|
|
Certificate of
deposit accounts |
|
1,544,117 |
|
|
|
1,511,770 |
|
|
|
1,563,310 |
|
|
|
Savings
accounts |
|
196,820 |
|
|
|
201,811 |
|
|
|
210,022 |
|
|
|
Money market
accounts |
|
1,302,153 |
|
|
|
1,352,843 |
|
|
|
1,427,992 |
|
|
|
NOW accounts |
|
1,368,813 |
|
|
|
1,542,606 |
|
|
|
1,300,852 |
|
|
|
|
Total deposits |
|
4,825,716 |
|
|
|
5,010,094 |
|
|
|
4,915,923 |
|
Mortgagors' escrow
deposits |
|
52,201 |
|
|
|
70,115 |
|
|
|
44,861 |
|
Borrowed
funds |
|
1,371,890 |
|
|
|
1,116,416 |
|
|
|
1,250,843 |
|
Operating Lease
Liability |
|
50,898 |
|
|
|
52,510 |
|
|
|
- |
|
Other
liabilities |
|
79,539 |
|
|
|
58,756 |
|
|
|
73,085 |
|
|
|
|
Total liabilities |
|
6,380,244 |
|
|
|
6,307,891 |
|
|
|
6,284,712 |
|
|
|
|
|
|
|
|
|
|
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 June 30,
2019, March 31, 2019 and December 31, 2018; 28,187,922 |
|
|
|
|
|
|
shares, 28,187,184
shares and 27,983,637 shares outstanding at June 30, 2019, |
|
|
|
|
|
|
March 31, 2019 and
December 31, 2018, respectively) |
|
315 |
|
|
|
315 |
|
|
|
315 |
|
Additional paid-in
capital |
|
224,231 |
|
|
|
222,859 |
|
|
|
222,720 |
|
Treasury stock
(3,342,673 shares, 3,343,411 shares and 3,546,958 shares
at |
|
|
|
|
|
|
June 30, 2019,
March 31, 2019 and December 31, 2018, respectively) |
|
(70,913 |
) |
|
|
(70,929 |
) |
|
|
(75,146 |
) |
Retained
earnings |
|
422,373 |
|
|
|
417,856 |
|
|
|
414,327 |
|
Accumulated other
comprehensive loss, net of taxes |
|
(10,616 |
) |
|
|
(10,542 |
) |
|
|
(12,752 |
) |
|
|
|
Total stockholders'
equity |
|
565,390 |
|
|
|
559,559 |
|
|
|
549,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
6,945,634 |
|
|
$ |
6,867,450 |
|
|
$ |
6,834,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in thousands, except per share
data)(Unaudited)
|
At or for the three months ended |
|
At or for the six months ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.37 |
|
$ |
0.25 |
|
$ |
0.48 |
|
$ |
0.61 |
|
$ |
0.88 |
|
Diluted earnings per
share |
$ |
0.37 |
|
$ |
0.25 |
|
$ |
0.48 |
|
$ |
0.61 |
|
$ |
0.88 |
|
Average number of shares
outstanding for: |
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share computation |
|
28,760,816 |
|
|
28,621,018 |
|
|
28,844,829 |
|
|
28,691,303 |
|
|
28,909,135 |
|
Diluted earnings per common share computation |
|
28,760,816 |
|
|
28,621,030 |
|
|
28,845,611 |
|
|
28,691,309 |
|
|
28,910,034 |
|
Shares outstanding |
|
28,187,922 |
|
|
28,187,184 |
|
|
28,319,213 |
|
|
28,187,922 |
|
|
28,319,213 |
|
Book value per common share
(1) |
$ |
20.06 |
|
$ |
19.85 |
|
$ |
19.00 |
|
$ |
20.06 |
|
$ |
19.00 |
|
Tangible book value per common
share (2) |
$ |
19.50 |
|
$ |
19.29 |
|
$ |
18.44 |
|
$ |
19.50 |
|
$ |
18.44 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
$ |
565,390 |
|
$ |
559,559 |
|
$ |
538,044 |
|
$ |
565,390 |
|
$ |
538,044 |
|
Tangible stockholders'
equity |
|
549,549 |
|
|
543,722 |
|
|
522,208 |
|
|
549,549 |
|
|
522,208 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances |
|
|
|
|
|
|
|
|
|
|
Total loans, net |
$ |
5,565,057 |
|
$ |
5,544,667 |
|
$ |
5,316,033 |
|
$ |
5,554,919 |
|
$ |
5,273,939 |
|
Total interest-earning
assets |
|
6,540,134 |
|
|
6,521,142 |
|
|
6,181,186 |
|
|
6,530,692 |
|
|
6,140,173 |
|
Total assets |
|
6,891,541 |
|
|
6,868,140 |
|
|
6,484,882 |
|
|
6,879,905 |
|
|
6,444,364 |
|
Total due to depositors |
|
4,595,189 |
|
|
4,598,305 |
|
|
4,310,461 |
|
|
4,596,738 |
|
|
4,243,844 |
|
Total interest-bearing
liabilities |
|
5,825,187 |
|
|
5,811,263 |
|
|
5,515,580 |
|
|
5,818,263 |
|
|
5,479,268 |
|
Stockholders' equity |
|
560,624 |
|
|
552,621 |
|
|
532,027 |
|
|
556,645 |
|
|
530,662 |
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (3) |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.61 |
% |
|
0.41 |
% |
|
0.86 |
% |
|
0.51 |
% |
|
0.79 |
% |
Return on average equity |
|
7.53 |
|
|
5.12 |
|
|
10.47 |
|
|
6.33 |
|
|
9.55 |
|
Yield on average
interest-earning assets (4) |
|
4.26 |
|
|
4.29 |
|
|
4.11 |
|
|
4.28 |
|
|
4.06 |
|
Cost of average
interest-bearing liabilities |
|
2.03 |
|
|
1.93 |
|
|
1.50 |
|
|
1.98 |
|
|
1.42 |
|
Cost of funds |
|
1.90 |
|
|
1.80 |
|
|
1.40 |
|
|
1.85 |
|
|
1.33 |
|
Interest rate spread during
period (4) |
|
2.23 |
|
|
2.36 |
|
|
2.61 |
|
|
2.30 |
|
|
2.64 |
|
Net interest margin (4) |
|
2.45 |
|
|
2.57 |
|
|
2.77 |
|
|
2.51 |
|
|
2.79 |
|
Non-interest expense to
average assets |
|
1.58 |
|
|
1.89 |
|
|
1.69 |
|
|
1.73 |
|
|
1.82 |
|
Efficiency ratio (5) |
|
61.06 |
|
|
70.37 |
|
|
59.58 |
|
|
67.36 |
|
|
64.41 |
|
Average interest-earning
assets to average |
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
1.12 |
X |
|
1.12 |
X |
|
1.12 |
X |
|
1.12 |
X |
|
1.12 |
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) |
Yields are calculated on the tax equivalent basis using the
statutory federal income tax rate of 21% for the periods
presented. |
(5) |
Efficiency ratio, a non-GAAP measure, was calculated by dividing
non-interest expense (excluding accelerated employee benefits upon
officers death, OREO expense and the net gain/loss from the sale of
OREO) by the total of net interest income (excluding net losses
from fair value adjustments on qualifying hedges) and non-interest
income (excluding net gains and losses from the sale of securities,
assets and fair value adjustments and life insurance
proceeds). |
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in thousands)(Unaudited)
|
At or for the six |
|
|
At or for the year |
|
|
At or for the six |
|
|
ended |
|
|
ended |
|
|
months ended |
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Selected Financial
Ratios and Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios (for
Flushing Financial Corporation): |
|
|
|
|
|
|
|
|
Tier 1 capital |
$ |
600,730 |
|
|
$ |
586,582 |
|
|
|
$ |
572,189 |
|
Common equity Tier 1 capital |
|
558,848 |
|
|
|
546,230 |
|
|
|
|
534,036 |
|
Total risk-based capital |
|
697,240 |
|
|
|
682,527 |
|
|
|
|
667,409 |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital (well capitalized = 5%) |
|
8.72 |
% |
|
|
8.74 |
% |
|
|
|
8.79 |
% |
Common equity Tier 1 risk-based capital (well capitalized =
6.5%) |
|
10.60 |
|
|
|
10.98 |
|
|
|
|
11.07 |
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
|
11.39 |
|
|
|
11.79 |
|
|
|
|
11.87 |
|
Total risk-based capital (well capitalized = 10.0%) |
|
13.22 |
|
|
|
13.72 |
|
|
|
|
13.84 |
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios (for
Flushing Bank only): |
|
|
|
|
|
|
|
|
Tier 1 capital |
$ |
667,882 |
|
|
$ |
660,782 |
|
|
|
$ |
644,880 |
|
Common equity Tier 1 capital |
|
667,882 |
|
|
|
660,782 |
|
|
|
|
644,880 |
|
Total risk-based capital |
|
689,392 |
|
|
|
681,727 |
|
|
|
|
665,100 |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital (well capitalized = 5%) |
|
9.69 |
% |
|
|
9.85 |
% |
|
|
|
9.90 |
% |
Common equity Tier 1 risk-based capital (well capitalized =
6.5%) |
|
12.66 |
|
|
|
13.28 |
|
|
|
|
13.37 |
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
|
12.66 |
|
|
|
13.28 |
|
|
|
|
13.37 |
|
Total risk-based capital (well capitalized = 10.0%) |
|
13.07 |
|
|
|
13.70 |
|
|
|
|
13.79 |
|
|
|
|
|
|
|
|
|
|
Capital ratios: |
|
|
|
|
|
|
|
|
Average equity to average assets |
|
8.09 |
% |
|
|
8.22 |
% |
|
|
|
8.23 |
% |
Equity to total assets |
|
8.14 |
|
|
|
8.04 |
|
|
|
|
8.32 |
|
Tangible common equity to tangible assets (1) |
|
7.93 |
|
|
|
7.83 |
|
|
|
|
8.09 |
|
|
|
|
|
|
|
|
|
|
Asset quality: |
|
|
|
|
|
|
|
|
Non-accrual loans (2) |
$ |
15,702 |
|
|
$ |
16,253 |
|
|
|
$ |
14,059 |
|
Non-performing loans |
|
15,702 |
|
|
|
16,253 |
|
|
|
|
14,789 |
|
Non-performing assets |
|
15,976 |
|
|
|
16,288 |
|
|
|
|
14,824 |
|
Net charge-offs/ (recoveries) |
|
1,881 |
|
|
|
(19 |
) |
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
Asset quality ratios: |
|
|
|
|
|
|
|
|
Non-performing loans to gross loans |
|
0.28 |
% |
|
|
0.29 |
% |
|
|
|
0.28 |
% |
Non-performing assets to total assets |
|
0.23 |
|
|
|
0.24 |
|
|
|
|
0.23 |
|
Allowance for loan losses to gross loans |
|
0.38 |
|
|
|
0.38 |
|
|
|
|
0.38 |
|
Allowance for loan losses to non-performing assets |
|
134.64 |
|
|
|
128.60 |
|
|
|
|
136.40 |
|
Allowance for loan losses to non-performing loans |
|
136.99 |
|
|
|
128.87 |
|
|
|
|
136.72 |
|
|
|
|
|
|
|
|
|
|
Full-service customer
facilities |
|
19 |
|
|
|
19 |
|
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
(1) See
“Calculation of Tangible Stockholders’ Common Equity to Tangible
Assets”. |
(2) Excludes
performing non-accrual TDR loans. |
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESNET INTEREST MARGIN(Dollars
in thousands) (Unaudited)
|
For the three months ended |
|
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
|
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
Balance |
Interest |
Cost |
|
|
(Dollars in thousands) |
|
Interest-earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans, net |
$ |
4,590,429 |
$ |
50,206 |
4.37 |
% |
$ |
4,619,587 |
$ |
50,845 |
4.40 |
% |
$ |
4,509,778 |
$ |
47,673 |
4.23 |
% |
Other loans, net |
|
974,628 |
|
12,067 |
4.95 |
|
|
925,080 |
|
11,485 |
4.97 |
|
|
806,255 |
|
9,649 |
4.79 |
|
Total loans, net (1) (2) |
|
5,565,057 |
|
62,273 |
4.48 |
|
|
5,544,667 |
|
62,330 |
4.50 |
|
|
5,316,033 |
|
57,322 |
4.31 |
|
Taxable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed |
|
|
|
|
|
|
|
|
|
|
|
|
securities |
|
585,892 |
|
4,225 |
2.88 |
|
|
573,397 |
|
4,248 |
2.96 |
|
|
533,088 |
|
3,754 |
2.82 |
|
Other securities |
|
242,560 |
|
2,135 |
3.52 |
|
|
241,863 |
|
2,211 |
3.66 |
|
|
122,601 |
|
1,023 |
3.34 |
|
Total taxable securities |
|
828,452 |
|
6,360 |
3.07 |
|
|
815,260 |
|
6,459 |
3.17 |
|
|
655,689 |
|
4,777 |
2.91 |
|
Tax-exempt securities: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
Other securities |
|
56,064 |
|
595 |
4.25 |
|
|
58,173 |
|
594 |
4.08 |
|
|
124,058 |
|
1,084 |
3.50 |
|
Total tax-exempt securities |
|
56,064 |
|
595 |
4.25 |
|
|
58,173 |
|
594 |
4.08 |
|
|
124,058 |
|
1,084 |
3.50 |
|
Interest-earning deposits |
|
|
|
|
|
|
|
|
|
|
|
|
and federal funds sold |
|
90,561 |
|
472 |
2.08 |
|
|
103,042 |
|
555 |
2.15 |
|
|
85,406 |
|
338 |
1.58 |
|
Total interest-earning |
|
|
|
|
|
|
|
|
|
|
|
|
assets |
|
6,540,134 |
|
69,700 |
4.26 |
|
|
6,521,142 |
|
69,938 |
4.29 |
|
|
6,181,186 |
|
63,521 |
4.11 |
|
Other assets |
|
351,407 |
|
|
|
|
346,998 |
|
|
|
|
303,696 |
|
|
|
Total assets |
$ |
6,891,541 |
|
|
|
$ |
6,868,140 |
|
|
|
$ |
6,484,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
$ |
200,349 |
|
348 |
0.69 |
|
$ |
205,775 |
|
361 |
0.70 |
|
$ |
235,564 |
|
285 |
0.48 |
|
NOW accounts |
|
1,541,956 |
|
6,641 |
1.72 |
|
|
1,488,859 |
|
6,031 |
1.62 |
|
|
1,444,889 |
|
3,364 |
0.93 |
|
Money market accounts |
|
1,336,526 |
|
6,974 |
2.09 |
|
|
1,380,172 |
|
6,821 |
1.98 |
|
|
1,110,690 |
|
3,983 |
1.43 |
|
Certificate of deposit |
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
1,516,358 |
|
8,802 |
2.32 |
|
|
1,523,499 |
|
8,203 |
2.15 |
|
|
1,519,348 |
|
7,118 |
1.87 |
|
Total due to depositors |
|
4,595,189 |
|
22,765 |
1.98 |
|
|
4,598,305 |
|
21,416 |
1.86 |
|
|
4,310,491 |
|
14,750 |
1.37 |
|
Mortgagors' escrow |
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
83,799 |
|
62 |
0.30 |
|
|
62,174 |
|
53 |
0.34 |
|
|
77,343 |
|
38 |
0.20 |
|
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
4,678,988 |
|
22,827 |
1.95 |
|
|
4,660,479 |
|
21,469 |
1.84 |
|
|
4,387,834 |
|
14,788 |
1.35 |
|
Borrowings |
|
1,146,199 |
|
6,739 |
2.35 |
|
|
1,150,784 |
|
6,541 |
2.27 |
|
|
1,127,746 |
|
5,865 |
2.08 |
|
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
5,825,187 |
|
29,566 |
2.03 |
|
|
5,811,263 |
|
28,010 |
1.93 |
|
|
5,515,580 |
|
20,653 |
1.50 |
|
Non interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
demand deposits |
|
394,642 |
|
|
|
|
398,829 |
|
|
|
|
370,790 |
|
|
|
Other liabilities |
|
111,088 |
|
|
|
|
105,427 |
|
|
|
|
66,485 |
|
|
|
Total liabilities |
|
6,330,917 |
|
|
|
|
6,315,519 |
|
|
|
|
5,952,855 |
|
|
|
Equity |
|
560,624 |
|
|
|
|
552,621 |
|
|
|
|
532,027 |
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
equity |
$ |
6,891,541 |
|
|
|
$ |
6,868,140 |
|
|
|
$ |
6,484,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / |
|
|
|
|
|
|
|
|
|
|
|
|
net interest rate spread (tax equivalent) (3) |
|
$ |
40,134 |
2.23 |
% |
|
$ |
41,928 |
2.36 |
% |
|
$ |
42,868 |
2.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
/ |
|
|
|
|
|
|
|
|
|
|
|
|
net interest margin (tax equivalent) |
$ |
714,947 |
|
2.45 |
% |
$ |
709,879 |
|
2.57 |
% |
$ |
665,606 |
|
2.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning |
|
|
|
|
|
|
|
|
|
|
|
|
assets to interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
|
1.12 |
X |
|
|
1.12 |
X |
|
|
1.12 |
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 $0.4 million, $0.5 million
and $0.3 million for the three months ended June 30, 2019, March
31, 2019 and June 30, 2018, respectively. |
(2) |
Loan interest income includes net losses from fair value
adjustments on qualifying hedges of $0.8 million, $0.6 million and
none for the three months ended June 30, 2019, March 31, 2019 and
June 30, 2018, respectively. |
(3) |
Interest and yields are calculated on the tax equivalent basis
using the statutory federal income tax rate of 21% for the three
months ended June 30, 2019, March 31, 2019 and June 30, 2018
totaling $125,000, $125,000 and $228,000, respectively. |
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESNET INTEREST MARGIN(Dollars
in thousands)(Unaudited)
|
For the six months ended |
|
|
June 30, 2019 |
|
|
June 30, 2018 |
|
|
Average |
|
Yield/ |
|
|
Average |
|
Yield/ |
|
|
Balance |
Interest |
Cost |
|
|
Balance |
Interest |
Cost |
|
Interest-earning
Assets: |
|
|
|
|
|
|
|
|
|
Mortgage loans, net |
$ |
4,604,928 |
$ |
101,051 |
4.39 |
% |
|
$ |
4,476,509 |
$ |
93,785 |
4.19 |
% |
Other loans, net |
|
949,991 |
|
23,552 |
4.96 |
|
|
|
797,430 |
|
18,554 |
4.65 |
|
Total loans, net (1) (2) |
|
5,554,919 |
|
124,603 |
4.49 |
|
|
|
5,273,939 |
|
112,339 |
4.26 |
|
Taxable securities: |
|
|
|
|
|
|
|
|
|
Mortgage-backed |
|
|
|
|
|
|
|
|
|
securities |
|
579,679 |
|
8,473 |
2.92 |
|
|
|
528,922 |
|
7,261 |
2.75 |
|
Other securities |
|
242,214 |
|
4,346 |
3.59 |
|
|
|
126,816 |
|
2,144 |
3.38 |
|
Total taxable securities |
|
821,893 |
|
12,819 |
3.12 |
|
|
|
655,738 |
|
9,405 |
2.87 |
|
Tax-exempt securities: (3) |
|
|
|
|
|
|
|
|
|
Other securities |
|
57,113 |
|
1,189 |
4.16 |
|
|
|
124,091 |
|
2,165 |
3.49 |
|
Total tax-exempt securities |
|
57,113 |
|
1,189 |
4.16 |
|
|
|
124,091 |
|
2,165 |
3.49 |
|
Interest-earning deposits |
|
|
|
|
|
|
|
|
|
and federal funds sold |
|
96,767 |
|
1,027 |
2.12 |
|
|
|
86,405 |
|
625 |
1.45 |
|
Total interest-earning |
|
|
|
|
|
|
|
|
|
assets |
|
6,530,692 |
|
139,638 |
4.28 |
|
|
|
6,140,173 |
|
124,534 |
4.06 |
|
Other assets |
|
349,213 |
|
|
|
|
|
304,191 |
|
|
|
Total assets |
$ |
6,879,905 |
|
|
|
|
$ |
6,444,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Savings accounts |
$ |
203,047 |
|
709 |
0.70 |
|
|
$ |
250,646 |
|
674 |
0.54 |
|
NOW accounts |
|
1,515,554 |
|
12,672 |
1.67 |
|
|
|
1,492,413 |
|
6,512 |
0.87 |
|
Money market accounts |
|
1,358,228 |
|
13,795 |
2.03 |
|
|
|
1,068,443 |
|
7,058 |
1.32 |
|
Certificate of deposit |
|
|
|
|
|
|
|
|
|
accounts |
|
1,519,909 |
|
17,005 |
2.24 |
|
|
|
1,432,342 |
|
12,581 |
1.76 |
|
Total due to depositors |
|
4,596,738 |
|
44,181 |
1.92 |
|
|
|
4,243,844 |
|
26,825 |
1.26 |
|
Mortgagors' escrow |
|
|
|
|
|
|
|
|
|
accounts |
|
73,046 |
|
115 |
0.31 |
|
|
|
68,202 |
|
73 |
0.21 |
|
Total interest-bearing |
|
|
|
|
|
|
|
|
|
deposits |
|
4,669,784 |
|
44,296 |
1.90 |
|
|
|
4,312,046 |
|
26,898 |
1.25 |
|
Borrowings |
|
1,148,479 |
|
13,280 |
2.31 |
|
|
|
1,167,222 |
|
11,932 |
2.04 |
|
Total interest-bearing |
|
|
|
|
|
|
|
|
|
liabilities |
|
5,818,263 |
|
57,576 |
1.98 |
|
|
|
5,479,268 |
|
38,830 |
1.42 |
|
Non interest-bearing |
|
|
|
|
|
|
|
|
|
demand deposits |
|
396,724 |
|
|
|
|
|
367,903 |
|
|
|
Other liabilities |
|
108,273 |
|
|
|
|
|
66,531 |
|
|
|
Total liabilities |
|
6,323,260 |
|
|
|
|
|
5,913,702 |
|
|
|
Equity |
|
556,645 |
|
|
|
|
|
530,662 |
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
|
|
equity |
$ |
6,879,905 |
|
|
|
|
$ |
6,444,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / |
|
|
|
|
|
|
|
|
|
net interest rate spread (tax equivalent) (3) |
|
$ |
82,062 |
2.30 |
% |
|
|
$ |
85,704 |
2.64 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
/ |
|
|
|
|
|
|
|
|
|
net interest margin (tax equivalent) |
$ |
712,429 |
|
2.51 |
% |
|
$ |
660,905 |
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning |
|
|
|
|
|
|
|
|
|
assets to interest-bearing |
|
|
|
|
|
|
|
|
|
liabilities |
|
|
1.12 |
X |
|
|
|
1.12 |
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 $0.9 million and $0.4
million for the six months ended June 30, 2019 and 2018,
respectively. |
(2) |
Loan interest income includes net losses from fair value
adjustments on qualifying hedges of $1.5 million and none for the
six months ended June 30, 2019 and June 30, 2018,
respectively. |
(3) |
Interest and yields are calculated on the tax equivalent basis
using the statutory federal income tax rate of 21% for the six
months ended June 30, 2019 and June 30, 2018 totaling $250,000 and
$455,000, respectively. |
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESDEPOSIT
COMPOSITION(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 2019 vs. |
|
|
|
|
|
June 2019 vs. |
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
December 2018 |
|
September 30, |
|
June 30, |
|
June 2018 |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
% Change |
|
2018 |
|
2018 |
|
% Change |
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
$ |
413,813 |
|
$ |
401,064 |
|
$ |
413,747 |
|
0.0% |
|
$ |
398,606 |
|
$ |
388,467 |
|
6.5% |
Interest
bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate of
deposit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
accounts |
|
1,544,117 |
|
|
1,511,770 |
|
|
1,563,310 |
|
-1.2% |
|
|
1,562,962 |
|
|
1,452,016 |
|
6.3% |
|
Savings
accounts |
|
196,820 |
|
|
201,811 |
|
|
210,022 |
|
-6.3% |
|
|
216,976 |
|
|
225,815 |
|
-12.8% |
|
Money market
accounts |
|
1,302,153 |
|
|
1,352,843 |
|
|
1,427,992 |
|
-8.8% |
|
|
1,223,640 |
|
|
1,069,835 |
|
21.7% |
|
NOW accounts |
|
1,368,813 |
|
|
1,542,606 |
|
|
1,300,852 |
|
5.2% |
|
|
1,255,464 |
|
|
1,422,745 |
|
-3.8% |
|
|
Total
interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
deposits |
|
4,411,903 |
|
|
4,609,030 |
|
|
4,502,176 |
|
-2.0% |
|
|
4,259,042 |
|
|
4,170,411 |
|
5.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
4,825,716 |
|
$ |
5,010,094 |
|
$ |
4,915,923 |
|
-1.8% |
|
$ |
4,657,648 |
|
$ |
4,558,878 |
|
5.9% |
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESLOANS (Unaudited)
Loan Closings
|
For the three months |
|
For the six months ended |
|
June 30, |
|
March 31 |
|
June 30, |
|
June 30, |
|
June 30, |
(In
thousands) |
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Multi-family residential |
$ |
55,629 |
|
$ |
27,214 |
|
$ |
70,972 |
|
$ |
82,843 |
|
$ |
152,153 |
Commercial real estate |
|
42,700 |
|
|
13,941 |
|
|
64,890 |
|
|
56,641 |
|
|
136,444 |
One-to-four family – mixed-use
property |
|
12,885 |
|
|
16,423 |
|
|
12,294 |
|
|
29,308 |
|
|
28,362 |
One-to-four family –
residential |
|
7,884 |
|
|
3,886 |
|
|
6,974 |
|
|
11,770 |
|
|
23,942 |
Co-operative apartments |
|
300 |
|
|
- |
|
|
1,500 |
|
|
300 |
|
|
1,500 |
Construction |
|
18,715 |
|
|
5,901 |
|
|
9,940 |
|
|
24,616 |
|
|
24,619 |
Small Business
Administration |
|
2,255 |
|
|
329 |
|
|
228 |
|
|
2,584 |
|
|
2,195 |
Commercial business and
other |
|
156,029 |
|
|
130,330 |
|
|
88,612 |
|
|
286,359 |
|
|
228,019 |
Total |
$ |
296,397 |
|
$ |
198,024 |
|
$ |
255,410 |
|
$ |
494,421 |
|
$ |
597,234 |
|
|
|
|
|
|
|
|
|
|
Loan Composition
|
|
|
|
|
|
|
|
|
|
June 2019 vs. |
|
|
|
|
|
June 2019 vs. |
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
December 2018 |
|
September 30, |
|
June 30, |
|
June 2018 |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
% Change |
|
2018 |
|
2018 |
|
% Change |
Loans held
for investment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family
residential |
$ |
2,263,875 |
|
|
$ |
2,256,447 |
|
|
$ |
2,269,048 |
|
|
-0.2% |
|
$ |
2,235,370 |
|
|
$ |
2,247,852 |
|
|
0.7% |
Commercial real
estate |
|
1,524,693 |
|
|
|
1,529,001 |
|
|
|
1,542,547 |
|
|
-1.2% |
|
|
1,460,555 |
|
|
|
1,471,894 |
|
|
3.6% |
One-to-four family
― |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
mixed-use
property |
|
582,264 |
|
|
|
582,049 |
|
|
|
577,741 |
|
|
0.8% |
|
|
565,302 |
|
|
|
564,474 |
|
|
3.2% |
One-to-four family
― residential |
|
184,024 |
|
|
|
188,615 |
|
|
|
190,350 |
|
|
-3.3% |
|
|
188,975 |
|
|
|
187,741 |
|
|
-2.0% |
Co-operative
apartments |
|
8,137 |
|
|
|
7,903 |
|
|
|
8,498 |
|
|
-4.2% |
|
|
7,771 |
|
|
|
7,839 |
|
|
3.8% |
Construction |
|
58,503 |
|
|
|
54,933 |
|
|
|
50,600 |
|
|
15.6% |
|
|
40,239 |
|
|
|
33,826 |
|
|
73.0% |
Small Business
Administration |
|
14,511 |
|
|
|
15,188 |
|
|
|
15,210 |
|
|
-4.6% |
|
|
14,322 |
|
|
|
14,405 |
|
|
0.7% |
Taxi
medallion |
|
3,555 |
|
|
|
3,891 |
|
|
|
4,539 |
|
|
-21.7% |
|
|
6,078 |
|
|
|
6,225 |
|
|
-42.9% |
Commercial
business and other |
|
983,573 |
|
|
|
935,297 |
|
|
|
877,763 |
|
|
12.1% |
|
|
846,224 |
|
|
|
783,904 |
|
|
25.5% |
Net unamortized
premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and unearned loan
fees |
|
15,278 |
|
|
|
15,422 |
|
|
|
15,188 |
|
|
0.6% |
|
|
15,226 |
|
|
|
15,647 |
|
|
-2.4% |
Allowance for loan
losses |
|
(21,510 |
) |
|
|
(21,015 |
) |
|
|
(20,945 |
) |
|
2.7% |
|
|
(20,309 |
) |
|
|
(20,220 |
) |
|
6.4% |
|
|
|
Net loans |
$ |
5,616,903 |
|
|
$ |
5,567,731 |
|
|
$ |
5,530,539 |
|
|
1.6% |
|
$ |
5,359,753 |
|
|
$ |
5,313,587 |
|
|
5.7% |
|
Net Loans Activity
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In thousands) |
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
Loans originated and
purchased |
$ |
296,397 |
|
|
$ |
198,024 |
|
|
$ |
344,732 |
|
|
$ |
308,825 |
|
|
$ |
255,410 |
|
Principal reductions |
|
(243,263 |
) |
|
|
(158,815 |
) |
|
|
(173,061 |
) |
|
|
(257,902 |
) |
|
|
(226,030 |
) |
Loans sold |
|
(1,970 |
) |
|
|
(1,043 |
) |
|
|
- |
|
|
|
(4,027 |
) |
|
|
(7,273 |
) |
Loan charged-offs |
|
(1,114 |
) |
|
|
(1,138 |
) |
|
|
(211 |
) |
|
|
(220 |
) |
|
|
(416 |
) |
Foreclosures |
|
(239 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net change in deferred fees
and costs |
|
(144 |
) |
|
|
234 |
|
|
|
(38 |
) |
|
|
(421 |
) |
|
|
(748 |
) |
Net change in the allowance
for loan losses |
|
(495 |
) |
|
|
(70 |
) |
|
|
(636 |
) |
|
|
(89 |
) |
|
|
322 |
|
Total loan activity |
$ |
49,172 |
|
|
$ |
37,192 |
|
|
$ |
170,786 |
|
|
$ |
46,166 |
|
|
$ |
21,265 |
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESNON-PERFORMING ASSETS and NET
CHARGE-OFFS(Unaudited)
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Loans 90
Days Or More Past Due |
|
|
|
|
|
|
|
|
|
|
and Still
Accruing: |
|
|
|
|
|
|
|
|
|
Commercial real
estate |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
111 |
|
|
$ |
- |
|
Construction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
730 |
|
|
Total |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
111 |
|
|
|
730 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual Loans: |
|
|
|
|
|
|
|
|
|
Multi-family
residential |
|
2,008 |
|
|
|
2,009 |
|
|
|
2,410 |
|
|
|
862 |
|
|
|
2,165 |
|
Commercial real
estate |
|
1,488 |
|
|
|
1,050 |
|
|
|
1,379 |
|
|
|
1,398 |
|
|
|
1,448 |
|
One-to-four family
- mixed-use property |
|
1,752 |
|
|
|
1,305 |
|
|
|
928 |
|
|
|
795 |
|
|
|
2,157 |
|
One-to-four family
- residential |
|
5,411 |
|
|
|
5,708 |
|
|
|
6,144 |
|
|
|
6,610 |
|
|
|
6,969 |
|
Co-operative
apartments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
575 |
|
Construction |
|
- |
|
|
|
950 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Small Business
Administration |
|
1,224 |
|
|
|
1,227 |
|
|
|
1,267 |
|
|
|
1,395 |
|
|
|
- |
|
Taxi
medallion(1) |
|
1,361 |
|
|
|
1,372 |
|
|
|
613 |
|
|
|
712 |
|
|
|
743 |
|
Commercial
business and other |
|
2,458 |
|
|
|
2,114 |
|
|
|
3,512 |
|
|
|
761 |
|
|
|
2 |
|
|
Total |
|
15,702 |
|
|
|
15,735 |
|
|
|
16,253 |
|
|
|
12,533 |
|
|
|
14,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-performing
Loans |
|
15,702 |
|
|
|
15,735 |
|
|
|
16,253 |
|
|
|
12,644 |
|
|
|
14,789 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Non-performing Assets: |
|
|
|
|
|
|
|
|
|
Real estate
acquired through foreclosure |
|
239 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other asset
acquired through foreclosure |
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
Total |
|
274 |
|
|
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-performing
Assets |
$ |
15,976 |
|
|
$ |
15,770 |
|
|
$ |
16,288 |
|
|
$ |
12,679 |
|
|
$ |
14,824 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing Assets to Total Assets |
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.19 |
% |
|
|
0.23 |
% |
Allowance
For Loan Losses to Non-performing Loans |
|
137.0 |
% |
|
|
133.6 |
% |
|
|
128.9 |
% |
|
|
160.6 |
% |
|
|
136.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Not included in the above analysis are non-accrual
performing TDR taxi medallion loans totaling $2.2 million in 2Q19,
$2.5 million in 1Q19, $3.9 million in 4Q18, $5.4 million in 3Q18
and $5.5 million in 2Q18. |
|
|
|
|
Net Charge-Offs (Recoveries)
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In
thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Multi-family residential |
$ |
(10 |
) |
|
$ |
(13 |
) |
|
$ |
(4 |
) |
|
$ |
18 |
|
|
$ |
28 |
|
Commercial real estate |
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
One-to-four family – mixed-use
property |
|
(2 |
) |
|
|
(85 |
) |
|
|
(18 |
) |
|
|
(36 |
) |
|
|
(79 |
) |
One-to-four family –
residential |
|
110 |
|
|
|
(4 |
) |
|
|
(199 |
) |
|
|
(258 |
) |
|
|
(4 |
) |
Small Business
Administration |
|
(16 |
) |
|
|
(4 |
) |
|
|
170 |
|
|
|
134 |
|
|
|
18 |
|
Taxi medallion |
|
(50 |
) |
|
|
(84 |
) |
|
|
(143 |
) |
|
|
40 |
|
|
|
353 |
|
Commercial business and
other |
|
954 |
|
|
|
1,092 |
|
|
|
(20 |
) |
|
|
13 |
|
|
|
6 |
|
Total net loan charge-offs (recoveries) |
$ |
979 |
|
|
$ |
902 |
|
|
$ |
(214 |
) |
|
$ |
(89 |
) |
|
$ |
322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Diluted EPS, Core ROAE, Core ROAA, Core Net Interest
Income, Core Yield on Total Loans, Core Net Interest Margin 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 below in tabular
form. The Company believes that these measures are useful for
both investors and management to understand the effects of certain
interest and 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
SUBSIDIARIESRECONCILIATION OF GAAP EARNINGS and
CORE EARNINGS(Dollars in thousands, except per share
data)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
2019 |
2019 |
2018 |
|
2019 |
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
$ |
13,828 |
|
$ |
9,355 |
|
$ |
18,412 |
|
|
$ |
23,183 |
|
$ |
32,774 |
|
|
|
|
|
|
|
|
Net loss from fair value
adjustments |
|
1,956 |
|
|
2,080 |
|
|
267 |
|
|
|
4,036 |
|
|
367 |
|
Net loss on sale of
securities |
|
15 |
|
|
- |
|
|
- |
|
|
|
15 |
|
|
- |
|
Life insurance proceeds |
|
- |
|
|
(43 |
) |
|
- |
|
|
|
(43 |
) |
|
(776 |
) |
Net gain on sale of
assets |
|
(770 |
) |
|
- |
|
|
- |
|
|
|
(770 |
) |
|
- |
|
Net losses from fair value
adjustments on qualifying hedges |
|
818 |
|
|
637 |
|
|
- |
|
|
|
1,455 |
|
|
- |
|
Accelerated employee benefits
upon Officer's death |
|
- |
|
|
455 |
|
|
- |
|
|
|
455 |
|
|
- |
|
|
|
|
|
|
|
|
Core income before taxes |
|
15,847 |
|
|
12,484 |
|
|
18,679 |
|
|
|
28,331 |
|
|
32,365 |
|
|
|
|
|
|
|
|
Provision for income taxes for
core income |
|
3,771 |
|
|
3,033 |
|
|
4,573 |
|
|
|
6,804 |
|
|
7,555 |
|
|
|
|
|
|
|
|
Core net income |
$ |
12,076 |
|
$ |
9,451 |
|
$ |
14,106 |
|
|
$ |
21,527 |
|
$ |
24,810 |
|
|
|
|
|
|
|
|
GAAP diluted earnings per
common share |
$ |
0.37 |
|
$ |
0.25 |
|
$ |
0.48 |
|
|
$ |
0.61 |
|
$ |
0.88 |
|
|
|
|
|
|
|
|
Net loss from fair value
adjustments, net of tax |
|
0.05 |
|
|
0.05 |
|
|
0.01 |
|
|
|
0.10 |
|
|
0.01 |
|
Net loss on sale of
securities, net of tax |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
Life insurance proceeds |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(0.03 |
) |
Net gain on sale of assets,
net of tax |
|
(0.02 |
) |
|
- |
|
|
- |
|
|
|
(0.02 |
) |
|
- |
|
Net losses from fair value
adjustments on qualifying hedges, net of tax |
|
0.02 |
|
|
0.02 |
|
|
- |
|
|
|
0.04 |
|
|
- |
|
Accelerated employee benefits
upon Officer's death, net of tax |
|
- |
|
|
0.01 |
|
|
- |
|
|
|
0.01 |
|
|
- |
|
|
|
|
|
|
|
|
Core diluted earnings per
common share1 |
$ |
0.42 |
|
$ |
0.33 |
|
$ |
0.49 |
|
|
$ |
0.75 |
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income, as calculated
above |
$ |
12,076 |
|
$ |
9,451 |
|
$ |
14,106 |
|
|
$ |
21,527 |
|
$ |
24,810 |
|
Average assets |
|
6,891,541 |
|
|
6,868,140 |
|
|
6,484,882 |
|
|
|
6,879,905 |
|
|
6,444,364 |
|
Average equity |
|
560,624 |
|
|
552,621 |
|
|
532,027 |
|
|
|
556,645 |
|
|
530,662 |
|
Core return on average
assets2 |
|
0.70 |
% |
|
0.55 |
% |
|
0.87 |
% |
|
|
0.63 |
% |
|
0.77 |
% |
Core return on average
equity2 |
|
8.62 |
% |
|
6.84 |
% |
|
10.61 |
% |
|
|
7.73 |
% |
|
9.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Core diluted earnings per common share may not foot
due to rounding. |
|
|
|
|
|
|
(2) Ratios are calculated on an annualized basis. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESRECONCILIATION OF GAAP NET INTEREST
INCOME and NET INTEREST MARGINTo CORE NET INTEREST
INCOME and NET INTEREST MARGIN(Dollars in
thousands)(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
2019 |
2019 |
2018 |
|
2019 |
2018 |
|
|
|
|
|
|
|
GAAP net interest income |
$ |
40,009 |
|
$ |
41,803 |
|
$ |
42,640 |
|
|
$ |
81,812 |
|
$ |
85,249 |
|
Net losses from fair value
adjustments on qualifying hedges |
|
818 |
|
|
637 |
|
|
- |
|
|
|
1,455 |
|
|
- |
|
Core net interest income |
$ |
40,827 |
|
$ |
42,440 |
|
$ |
42,640 |
|
|
$ |
83,267 |
|
$ |
85,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest income on total
loans, net |
$ |
62,273 |
|
$ |
62,330 |
|
$ |
57,322 |
|
|
$ |
124,603 |
|
$ |
112,339 |
|
Net losses from fair value
adjustments on qualifying hedges |
|
818 |
|
|
637 |
|
|
- |
|
|
|
1,455 |
|
|
- |
|
Prepayment penalties received
on loans |
|
(1,120 |
) |
|
(805 |
) |
|
(1,451 |
) |
|
|
(1,925 |
) |
|
(2,364 |
) |
Net recoveries of interest
from non-accrual loans |
|
(519 |
) |
|
(714 |
) |
|
(248 |
) |
|
|
(1,233 |
) |
|
(414 |
) |
Core interest income on total
loans, net |
$ |
61,452 |
|
$ |
61,448 |
|
$ |
55,623 |
|
|
$ |
122,900 |
|
$ |
109,561 |
|
Average total loans, net |
$ |
5,565,057 |
|
$ |
5,544,667 |
|
$ |
5,316,033 |
|
|
$ |
5,554,919 |
|
$ |
5,273,939 |
|
Core yield on total loans |
|
4.42 |
% |
|
4.43 |
% |
|
4.19 |
% |
|
|
4.42 |
% |
|
4.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income tax
equivalent |
$ |
40,134 |
|
$ |
41,928 |
|
$ |
42,868 |
|
|
$ |
82,062 |
|
$ |
85,704 |
|
Net losses from fair value
adjustments on qualifying hedges |
|
818 |
|
|
637 |
|
|
- |
|
|
|
1,455 |
|
|
- |
|
Prepayment penalties received
on loans and securities |
|
(1,120 |
) |
|
(805 |
) |
|
(1,553 |
) |
|
|
(1,925 |
) |
|
(2,466 |
) |
Net recoveries of interest
from non-accrual loans |
|
(519 |
) |
|
(714 |
) |
|
(248 |
) |
|
|
(1,233 |
) |
|
(414 |
) |
Net interest income used in
calculation of Core net interest margin |
$ |
39,313 |
|
$ |
41,046 |
|
$ |
41,067 |
|
|
$ |
80,359 |
|
$ |
82,824 |
|
Total average interest-earning
assets |
$ |
6,540,134 |
|
$ |
6,521,142 |
|
$ |
6,181,186 |
|
|
$ |
6,530,692 |
|
$ |
6,140,173 |
|
Core net interest margin |
|
2.40 |
% |
|
2.52 |
% |
|
2.66 |
% |
|
|
2.46 |
% |
|
2.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FLUSHING FINANCIAL CORPORATION and
SUBSIDIARIESCALCULATION OF TANGIBLE
STOCKHOLDERS’ COMMON EQUITY to TANGIBLE
ASSETS(Unaudited)
|
|
|
June 30, |
December 31, |
June 30, |
(Dollars in thousands) |
2019 |
2018 |
2018 |
Total Equity |
$ |
565,390 |
|
$ |
549,464 |
|
$ |
538,044 |
|
Less: |
|
|
|
|
Goodwill |
|
(16,127 |
) |
|
(16,127 |
) |
|
(16,127 |
) |
|
Intangible
deferred tax liabilities |
|
286 |
|
|
290 |
|
|
291 |
|
|
|
Tangible Stockholders' Common Equity |
$ |
549,549 |
|
$ |
533,627 |
|
$ |
522,208 |
|
|
|
|
|
|
|
Total Assets |
$ |
6,945,634 |
|
$ |
6,834,176 |
|
$ |
6,467,616 |
|
Less: |
|
|
|
|
Goodwill |
|
(16,127 |
) |
|
(16,127 |
) |
|
(16,127 |
) |
|
Intangible
deferred tax liabilities |
|
286 |
|
|
290 |
|
|
291 |
|
|
|
Tangible Assets |
$ |
6,929,793 |
|
$ |
6,818,339 |
|
$ |
6,451,780 |
|
|
|
|
|
|
|
Tangible
Stockholders' Common Equity to Tangible Assets |
|
7.93 |
% |
|
7.83 |
% |
|
8.09 |
% |
Susan K. CullenSenior Executive Vice President, Treasurer and
Chief Financial
Officer
Flushing Financial
Corporation
(718) 961-5400
Flushing Financial (NASDAQ:FFIC)
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