"Our second quarter results reflect the continued successful execution of our strategic priorities, building upon the foundational actions we took in the preceding quarters. We are pleased to report another quarter of net interest margin expansion, with both GAAP and Core NIM increasing, which speaks to the effectiveness of our balance sheet repositioning and disciplined approach to funding costs. Particularly encouraging is the strong year-over-year growth in our average noninterest-bearing deposits, which increased 6.4%, further bolstering our funding base. While we remain mindful of the persistent economic uncertainties, our focus on maintaining strong liquidity and capital has resulted in a tangible common equity to tangible assets ratio of 8.04%, a significant improvement from the prior year. The deliberate actions taken in late 2024 and early 2025 are yielding the anticipated benefits, enhancing our profitability and strengthening our financial position. As we look to the second half of the year, we will maintain our disciplined underwriting standards and proactive risk management, ensuring we are well-positioned to navigate the evolving landscape and continue to deliver long-term value to our shareholders."
- John R. Buran, President and CEO
UNIONDALE, NY / ACCESS Newswire / July 24, 2025 / NIM Expansion and Average Deposit Growth. The Company reported 2Q25 GAAP EPS of $0.41 and Core EPS of $0.32, an increase of 127.8% and 77.8% YoY, respectively. The primary differences between GAAP and Core earnings were fair value adjustments on debt and the reversal of a valuation allowance upon the reclassification of loans held for sale to loans held for investment.During the quarter, the NIM expanded on both a GAAP and Core basis by 3 bps QoQ to 2.54% and 2.52%, respectively as loan repricing largely offset the impact from maturing swaps. Average loans decreased 1.0% YoY but increased 0.1% QoQ, due to maintaining pricing and quality standards. Adherence to these standards, the Bank's CRE concentration declined to 493% at June 30, 2025, compared to 522% a year ago and 511% at the prior quarter end. Average deposits increased 5.7% YoY and 0.6% QoQ. Average noninterest bearing deposits increased 6.4% YoY and 2.4% QoQ. GAAP and Core pre-provision pre-tax net revenue increased 191.1% and 134.5% YoY to their highest quarterly level since 3Q22 and 4Q22, respectively.
Credit Metrics Stable to Improving and Capital Expands QoQ. NPAs to assets were 75 bps compared to 71 bps the prior quarter. Criticized and classified loans totaled 108 bps of gross loans compared to 133 bps in the prior quarter. Net charge-offs to average loans were 15 bps in 2Q25 compared to 27 bps in 1Q25. TCE/TA1 was 8.04% at June 30, 2025, compared to 7.79% at March 31, 2025.
Key Financial Metrics2
|
| 2Q25 |
|
|
| 1Q25 |
|
|
| 4Q24 |
|
|
| 3Q24 |
|
|
| 2Q24 |
|
|
| 1H25 |
|
|
| 1H24 |
| |
GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per Share |
| $ | 0.41 |
|
| $ | (0.29 | ) |
| $ | (1.64 | ) |
| $ | 0.30 |
|
| $ | 0.18 |
|
| $ | 0.12 |
|
| $ | 0.30 |
|
ROAA (%) |
|
| 0.64 |
|
|
| (0.43 | ) |
|
| (2.17 | ) |
|
| 0.39 |
|
|
| 0.24 |
|
|
| 0.10 |
|
|
| 0.21 |
|
ROAE (%) |
|
| 8.00 |
|
|
| (5.36 | ) |
|
| (29.24 | ) |
|
| 5.30 |
|
|
| 3.19 |
|
|
| 1.22 |
|
|
| 2.69 |
|
NIM FTE3 (%) |
|
| 2.54 |
|
|
| 2.51 |
|
|
| 2.39 |
|
|
| 2.10 |
|
|
| 2.05 |
|
|
| 2.52 |
|
|
| 2.06 |
|
Core: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
| $ | 0.32 |
|
| $ | 0.23 |
|
| $ | 0.14 |
|
| $ | 0.26 |
|
| $ | 0.18 |
|
| $ | 0.55 |
|
| $ | 0.33 |
|
ROAA (%) |
|
| 0.50 |
|
|
| 0.35 |
|
|
| 0.19 |
|
|
| 0.34 |
|
|
| 0.25 |
|
|
| 0.43 |
|
|
| 0.22 |
|
ROAE (%) |
|
| 6.29 |
|
|
| 4.34 |
|
|
| 2.54 |
|
|
| 4.59 |
|
|
| 3.27 |
|
|
| 5.30 |
|
|
| 2.92 |
|
Core NIM FTE (%) |
|
| 2.52 |
|
|
| 2.49 |
|
|
| 2.25 |
|
|
| 2.07 |
|
|
| 2.03 |
|
|
| 2.51 |
|
|
| 2.05 |
|
Credit Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPAs/Loans & OREO (%) |
|
| 0.99 |
|
|
| 0.95 |
|
|
| 0.76 |
|
|
| 0.81 |
|
|
| 0.82 |
|
|
| 0.99 |
|
|
| 0.82 |
|
ACLs/Loans (%) |
|
| 0.62 |
|
|
| 0.59 |
|
|
| 0.60 |
|
|
| 0.59 |
|
|
| 0.61 |
|
|
| 0.62 |
|
|
| 0.61 |
|
ACLs/NPLs (%) |
|
| 83.76 |
|
|
| 86.54 |
|
|
| 120.51 |
|
|
| 117.75 |
|
|
| 120.58 |
|
|
| 83.76 |
|
|
| 120.58 |
|
NCOs/Avg Loans (%) |
|
| 0.15 |
|
|
| 0.27 |
|
|
| 0.28 |
|
|
| 0.18 |
|
|
| (0.01 | ) |
|
| 0.21 |
|
|
| - |
|
Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg Loans ($B) |
| $ | 6.7 |
|
| $ | 6.7 |
|
| $ | 6.8 |
|
| $ | 6.7 |
|
| $ | 6.7 |
|
| $ | 6.7 |
|
| $ | 6.8 |
|
Avg Dep ($B) |
| $ | 7.6 |
|
| $ | 7.6 |
|
| $ | 7.4 |
|
| $ | 7.5 |
|
| $ | 7.2 |
|
| $ | 7.6 |
|
| $ | 7.1 |
|
Book Value/Share |
| $ | 20.91 |
|
| $ | 20.81 |
|
| $ | 21.53 |
|
| $ | 22.94 |
|
| $ | 22.89 |
|
| $ | 20.91 |
|
| $ | 22.89 |
|
Tangible BV/Share |
| $ | 20.89 |
|
| $ | 20.78 |
|
| $ | 20.97 |
|
| $ | 22.29 |
|
| $ | 22.24 |
|
| $ | 20.89 |
|
| $ | 22.24 |
|
TCE/TA (%) |
|
| 8.04 |
|
|
| 7.79 |
|
|
| 7.82 |
|
|
| 7.00 |
|
|
| 7.12 |
|
|
| 8.04 |
|
|
| 7.12 |
|
Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
1 Tangible Common Equity ("TCE")/Total Assets ("TA"). 2 See "Reconciliation of GAAP Earnings (Loss) and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Income Net Interest Margin to Core Net Interest Income and Net Interest Margin." 3 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").
2Q25 Highlights
Net interest margin FTE increased 49 bps YoY and 3 bps QoQ to 2.54%; Core net interest margin FTE increased 49 bps YoY and 3 bps QoQ to 2.52%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, swap termination fees, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled 6 bps in 2Q25 compared to 3 bps in both 2Q24 and 1Q25
Average total deposits increased 5.7% YoY and 0.6% QoQ to $7.6 billion; Average noninterest bearing deposits increased 6.4% YoY and 2.4% QoQ and totaled 11.5% of total average deposits compared to 11.4% in 2Q24 and 11.3% in 1Q25; Average CDs were $2.5 billion, up 1.4% YoY, but down 4.6% QoQ
Period end net loans decreased 1.0% YoY and 0.5% QoQ to $6.7 billion; Loan closings were $159.1 million, up 26.3% YoY, but down 8.6% QoQ; Back-to-back swap loan originations were $38.7 million compared to $18.0 million in 1Q25 and generated $0.6 million and $0.3 million of noninterest income, respectively; Loan pipeline decreased 44.8% YoY and 14.4% QoQ to $181.0 million; Approximately 23% of the loan pipeline consists of back-to-back swap loans
NPAs totaled $66.1 million (75 bps of assets) in 2Q25 compared to $55.8 million (61 bps) a year ago and $64.3 million (71 bps) in the prior quarter
Provision for credit losses was $4.2 million in 2Q25 compared to $0.8 million in 2Q24 and $4.3 million in 1Q25; Net charge-offs (recoveries) were $2.5 million in 2Q25 compared to $(92,000) in 2Q24 and $4.4 million in 1Q25
Tangible Common Equity to Tangible Assets was 8.04% at June 30, 2025, compared to 7.12% at June 30, 2024, and 7.79% at March 31, 2025; Tangible book value per share was $20.89 at June 30, 2025, compared to $22.24 a year ago and $20.78 for the prior quarter
Areas of Focus
Improve Profitability
GAAP and Core NIM expanded 3 bps each QoQ to 2.54% and 2.52%, respectively
GAAP ROAA and ROAE increased 107 bps and 1,336 bps QoQ; Core ROAA and ROAE improved 15 bps and 195 bps QoQ
Tangible book value per share increased 0.5% QoQ to $20.89 at June 30, 2025
Maintain Credit Discipline
Approximately 90% of the loan portfolio is collateralized by real estate with an average loan to value of less than 35%1
Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans
Criticized and classified loans are 108 bps of gross loans compared to 113 bps a year ago and 133 bps for the prior quarter
Manhattan office buildings exposure is minimal at approximately 0.50% of gross loans
Preserve Strong Liquidity and Capital
Maintaining ample liquidity with $3.6 billion of undrawn lines and resources as of June 30, 2025
Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 35% of total deposits
Total average deposits increased by 5.7% YoY and 0.6% QoQ
Tangible Common Equity to Tangible Assets was 8.04% at June 30, 2025, up 92 bps YoY and 25 bps QoQ
1 Based on appraisals at origination.
Income Statement Highlights
($000s, except EPS) |
|
| 2Q25 |
|
|
| 1Q25 |
|
|
| 4Q24 |
|
|
| 3Q24 |
|
|
| 2Q24 |
|
| YoY |
|
| QoQ |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Net Interest Income |
| $ | 53,209 |
|
| $ | 52,989 |
|
| $ | 51,235 |
|
| $ | 45,603 |
|
| $ | 42,776 |
|
|
| 24.4 | % |
|
| 0.4 | % |
Provision for Credit Losses |
|
| 4,194 |
|
|
| 4,318 |
|
|
| 6,440 |
|
|
| 1,727 |
|
|
| 809 |
|
|
| 418.4 |
|
|
| (2.9 | ) |
Noninterest Income (Loss) |
|
| 10,277 |
|
|
| 5,074 |
|
|
| (71,022 | ) |
|
| 6,277 |
|
|
| 4,216 |
|
|
| 143.8 |
|
|
| 102.5 |
|
Noninterest Expense |
|
| 40,356 |
|
|
| 59,676 |
|
|
| 45,630 |
|
|
| 38,696 |
|
|
| 39,047 |
|
|
| 3.4 |
|
|
| (32.4 | ) |
Income (Loss) Before Income Taxes |
|
| 18,936 |
|
|
| (5,931 | ) |
|
| (71,857 | ) |
|
| 11,457 |
|
|
| 7,136 |
|
|
| 165.4 |
|
|
| (419.3 | ) |
Provision (Benefit) for Income Taxes |
|
| 4,733 |
|
|
| 3,865 |
|
|
| (22,612 | ) |
|
| 2,551 |
|
|
| 1,814 |
|
|
| 160.9 |
|
|
| 22.5 |
|
Net Income (Loss) |
| $ | 14,203 |
|
| $ | (9,796 | ) |
| $ | (49,245 | ) |
| $ | 8,906 |
|
| $ | 5,322 |
|
|
| 166.9 |
|
|
| (245.0 | ) |
Diluted Earnings (Loss) per Common Share |
| $ | 0.41 |
|
| $ | (0.29 | ) |
| $ | (1.64 | ) |
| $ | 0.30 |
|
| $ | 0.18 |
|
|
| 127.8 |
|
|
| (241.4 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core Net Income1 |
| $ | 11,162 |
|
| $ | 7,931 |
|
| $ | 4,209 |
|
| $ | 7,723 |
|
| $ | 5,456 |
|
|
| 104.6 |
|
|
| 40.7 |
|
Core EPS1 |
| $ | 0.32 |
|
| $ | 0.23 |
|
| $ | 0.14 |
|
| $ | 0.26 |
|
| $ | 0.18 |
|
|
| 77.8 |
|
|
| 39.1 |
|
1 See Reconciliation of GAAP (Loss) Earnings and Core Earnings
Net interest income increased YoY and QoQ.
Net Interest Margin FTE of 2.54% increased 49 bps YoY and 3 bps QoQ; The cost of funds increased 6 bps QoQ primarily due to swap maturities and forward starting swaps at higher rates; The yield on interest earning assets increased 8 bps QoQ
Prepayment penalty income, swap termination fees, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled $1.2 million (6 bps to NIM) in 2Q25 compared to $0.7 million (3 bps to NIM) in 2Q24 and $0.6 million (3 bps to NIM) in 1Q25
Excluding the items in the previous bullet, the net interest margin was 2.48% in 2Q25 compared to 2.02% in 2Q24 and 2.48% in 1Q25
The provision for credit losses increased YoY but declined QoQ.
Net charge-offs (recoveries) were $2.5 million (15 bps of average loans) in 2Q25 compared to $(92,000) ((1) bp of average loans) in 2Q24 and $4.4 million (27 bps of average loans) in 1Q25
Noninterest income increased YoY and QoQ.
Back-to-back swap loan closings of $38.7 million in 2Q25 (compared to $27.4 million in 2Q24 and $18.0 million in 1Q25) generated $0.6 million of noninterest income (compared to $0.5 million in 2Q24 and $0.3 million in 1Q25)
Net gains (losses) from fair value adjustments were $1.7 million ($0.04 per share, net of tax) in 2Q25 compared to $0.1 million (less than $0.01 per share, net of tax) in 2Q24 and $(0.2) million (less than $0.01 per share, net of tax) in 1Q25
During 2Q25, the Company reclassified $29.5 million of loans held for sale to loans held of investment and reclassifying a $2.6 million mark to market adjustment in net gain (loss) on sale of loans
Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $6.0 million in 2Q25, up 45.0% YoY and 11.3% QoQ
Noninterest expense increased YoY, but decreased QoQ.
Core noninterest expenses were $39.9 million in 2Q25, up 3.7% YoY, but down 4.9% QoQ
Seasonal compensational expense was $1.6 million both in 1Q25 and 1Q24
The Company recorded a non-recurring, non-cash goodwill impairment charge of approximately $17.6 million ($0.51 per share) in 1Q25; As a result, there is no remaining goodwill
Provision for income taxes was $4.7 million in 2Q25 compared to $1.8 million in 2Q24 and $3.9 million in 1Q25.
The effective tax rate was 25.0% in 2Q25 compared to 25.4% in 2Q24 and (65.2)% in 1Q25
The effective tax rate in 1Q25 was primarily related to the non-tax deductible goodwill impairment
Balance Sheet, Credit Quality, and Capital Highlights
|
| 2Q25 |
|
|
| 1Q25 |
|
|
| 4Q24 |
|
|
| 3Q24 |
|
|
| 2Q24 |
|
| YoY |
|
| QoQ |
| |||
Averages ($MM) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Loans |
| $ | 6,678 |
|
| $ | 6,672 |
|
| $ | 6,780 |
|
| $ | 6,737 |
|
| $ | 6,748 |
|
|
| (1.0 | )% |
|
| 0.1 | % |
Total Deposits |
|
| 7,607 |
|
|
| 7,561 |
|
|
| 7,450 |
|
|
| 7,464 |
|
|
| 7,196 |
|
|
| 5.7 |
|
|
| 0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Credit Quality ($000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans |
| $ | 49,247 |
|
| $ | 46,263 |
|
| $ | 33,318 |
|
| $ | 34,261 |
|
| $ | 34,540 |
|
|
| 42.6 | % |
|
| 6.5 | % |
Nonperforming Assets |
|
| 66,125 |
|
|
| 64,263 |
|
|
| 51,318 |
|
|
| 54,888 |
|
|
| 55,832 |
|
|
| 18.4 |
|
|
| 2.9 |
|
Criticized and Classified Loans |
|
| 72,005 |
|
|
| 89,673 |
|
|
| 72,207 |
|
|
| 68,338 |
|
|
| 76,485 |
|
|
| (5.9 | ) |
|
| (19.7 | ) |
Criticized and Classified Assets |
|
| 88,883 |
|
|
| 107,673 |
|
|
| 90,207 |
|
|
| 88,965 |
|
|
| 97,777 |
|
|
| (9.1 | ) |
|
| (17.5 | ) |
Allowance for Credit Losses/Loans (%) |
|
| 0.62 |
|
|
| 0.59 |
|
|
| 0.60 |
|
|
| 0.59 |
|
|
| 0.61 |
|
|
| 1 | bp |
|
| 3 | bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value/Share |
| $ | 20.91 |
|
| $ | 20.81 |
|
| $ | 21.53 |
|
| $ | 22.94 |
|
| $ | 22.89 |
|
|
| (8.7 | )% |
|
| 0.5 | % |
Tangible Book Value/Share |
|
| 20.89 |
|
|
| 20.78 |
|
|
| 20.97 |
|
|
| 22.29 |
|
|
| 22.24 |
|
|
| (6.1 | ) |
|
| 0.5 |
|
Tang. Common Equity/Tang. Assets (%) |
|
| 8.04 |
|
|
| 7.79 |
|
|
| 7.82 |
|
|
| 7.00 |
|
|
| 7.12 |
|
|
| 92 | bps |
|
| 25 | bps |
Leverage Ratio (%) |
|
| 8.31 |
|
|
| 8.12 |
|
|
| 8.04 |
|
|
| 7.91 |
|
|
| 8.18 |
|
|
| 13 |
|
|
| 19 |
|
Average loans decreased YoY, but increased QoQ.
Period end net loans totaled $6.7 billion, down 1.0% YoY and 0.5% QoQ
Total loan closings were $159.1 million in 2Q25 compared to $126.0 million in 2Q24 and $174.1 million in 1Q25; the loan pipeline was $181.0 million at June 30, 2025, down 44.8% YoY and 14.4% QoQ
The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of less than 35%
Average total deposits increased YoY and QoQ.
Average noninterest bearing deposits increased 6.4% YoY and 2.4% QoQ and comprised 11.5% of average total deposits in 2Q25 compared to 11.4% a year ago
Average CDs totaled $2.5 billion, up 1.4% YoY, but down 4.6% QoQ; approximately $391.2 million of retail CDs are due to mature at an average rate of 3.93% in 3Q25
Credit Quality: Nonperforming loans increased YoY and QoQ.
Nonperforming loans were 74 bps of loans in 2Q25 compared to 51 bps in 2Q24 and 69 bps of loans in 1Q25
Criticized and classified loans were 108 bps of gross loans at 2Q25 compared to 113 bps at 2Q24 and 133 bps at 1Q25
Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 8.7% and 6.1% YoY to $20.91 and $20.89, respectively.
The Company paid a dividend of $0.22 per share in 2Q25; 807,964shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration date or maximum dollar limit
Tangible common equity to tangible assets was 8.04% at June 30, 2025, compared to 7.12% at June 30, 2024, and 7.79% at March 31, 2025
Conference Call Information
Conference Call Information:
John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Friday, July 25, 2025, at 11:00 AM (ET) to discuss the Company's second quarter results and strategy.
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=jGiZ4wOv
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
Replay Access Code: 8971272
The conference call will be simultaneously webcast and archived
Third Quarter 2025 Earnings Release Date:
The Company plans to release Third Quarter 2025 financial results after the market close on October 28, 2025, followed by a conference call at 9:30 AM (ET) on October 29, 2025.
A detailed announcement will be issued prior to the third quarter's close confirming the date and the time of the release.
About Flushing Financial Corporation
Flushing Financial Corporation (Nasdaq:FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State -chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.
Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at FlushingBank.com. Flushing Financial Corporation's earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.
"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, 2024 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.
- Statistical Tables Follow -
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the three months ended |
| At or for the six months ended |
| ||||||||||||||||||
(Dollars in thousands, except per share data) | June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| June 30, |
| June 30, |
| |||||||
Performance Ratios (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Return on average assets |
| 0.64 | % |
| (0.43 | )% |
| (2.17 | )% |
| 0.39 | % |
| 0.24 | % |
| 0.10 | % |
| 0.21 | % |
Return on average equity |
| 8.00 |
|
| (5.36 | ) |
| (29.24 | ) |
| 5.30 |
|
| 3.19 |
|
| 1.22 |
|
| 2.69 |
|
Yield on average interest-earning assets (2) |
| 5.59 |
|
| 5.51 |
|
| 5.60 |
|
| 5.63 |
|
| 5.43 |
|
| 5.55 |
|
| 5.37 |
|
Cost of average interest-bearing liabilities |
| 3.58 |
|
| 3.50 |
|
| 3.75 |
|
| 4.10 |
|
| 3.95 |
|
| 3.54 |
|
| 3.89 |
|
Cost of funds |
| 3.19 |
|
| 3.13 |
|
| 3.35 |
|
| 3.69 |
|
| 3.54 |
|
| 3.16 |
|
| 3.48 |
|
Net interest rate spread during period (2) |
| 2.01 |
|
| 2.01 |
|
| 1.85 |
|
| 1.53 |
|
| 1.48 |
|
| 2.01 |
|
| 1.48 |
|
Net interest margin (2) |
| 2.54 |
|
| 2.51 |
|
| 2.39 |
|
| 2.10 |
|
| 2.05 |
|
| 2.52 |
|
| 2.06 |
|
Noninterest expense to average assets |
| 1.81 |
|
| 2.65 |
|
| 2.01 |
|
| 1.68 |
|
| 1.77 |
|
| 2.23 |
|
| 1.80 |
|
Efficiency ratio (3) |
| 67.69 |
|
| 72.21 |
|
| 79.01 |
|
| 77.20 |
|
| 82.57 |
|
| 69.93 |
|
| 84.31 |
|
Average interest-earning assets to average interest-bearing liabilities |
| 1.17 | X |
| 1.17 | X |
| 1.17 | X |
| 1.16 | X |
| 1.17 | X |
| 1.17 | X |
| 1.17 | X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net | $ | 6,678,494 |
| $ | 6,671,922 |
| $ | 6,780,268 |
| $ | 6,737,261 |
| $ | 6,748,140 |
| $ | 6,675,226 |
| $ | 6,776,128 |
|
Total interest-earning assets |
| 8,402,582 |
|
| 8,468,913 |
|
| 8,587,482 |
|
| 8,709,671 |
|
| 8,354,994 |
|
| 8,435,565 |
|
| 8,295,076 |
|
Total assets |
| 8,918,075 |
|
| 9,015,880 |
|
| 9,071,879 |
|
| 9,203,884 |
|
| 8,830,665 |
|
| 8,966,707 |
|
| 8,769,085 |
|
Total deposits |
| 7,607,080 |
|
| 7,560,956 |
|
| 7,449,504 |
|
| 7,463,783 |
|
| 7,195,940 |
|
| 7,584,144 |
|
| 7,138,720 |
|
Total interest-bearing liabilities |
| 7,176,399 |
|
| 7,261,100 |
|
| 7,339,707 |
|
| 7,504,517 |
|
| 7,140,068 |
|
| 7,218,514 |
|
| 7,077,498 |
|
Stockholders' equity |
| 709,839 |
|
| 731,592 |
|
| 673,588 |
|
| 672,762 |
|
| 667,557 |
|
| 720,656 |
|
| 668,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (4) | $ | 20.91 |
| $ | 20.81 |
| $ | 21.53 |
| $ | 22.94 |
| $ | 22.89 |
| $ | 20.91 |
| $ | 22.89 |
|
Tangible book value per common share (5) | $ | 20.89 |
| $ | 20.78 |
| $ | 20.97 |
| $ | 22.29 |
| $ | 22.24 |
| $ | 20.89 |
| $ | 22.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity | $ | 706,377 |
| $ | 702,851 |
| $ | 724,539 |
| $ | 666,891 |
| $ | 665,322 |
| $ | 706,377 |
| $ | 665,322 |
|
Tangible stockholders' equity |
| 705,437 |
|
| 701,822 |
|
| 705,780 |
|
| 648,035 |
|
| 646,364 |
|
| 705,437 |
|
| 646,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Consolidated Regulatory Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital | $ | 740,871 |
| $ | 730,950 |
| $ | 731,958 |
| $ | 735,984 |
| $ | 733,308 |
| $ | 740,871 |
| $ | 733,308 |
|
Common equity Tier 1 capital |
| 695,099 |
|
| 683,670 |
|
| 685,004 |
|
| 689,902 |
|
| 686,630 |
|
| 695,099 |
|
| 686,630 |
|
Total risk-based capital |
| 972,517 |
|
| 961,704 |
|
| 962,272 |
|
| 967,242 |
|
| 965,819 |
|
| 972,517 |
|
| 965,819 |
|
Risk Weighted Assets |
| 6,675,621 |
|
| 6,719,291 |
|
| 6,762,048 |
|
| 6,790,253 |
|
| 6,718,568 |
|
| 6,675,621 |
|
| 6,718,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Tier 1 leverage capital (well capitalized = 5%) |
| 8.31 | % |
| 8.12 | % |
| 8.04 | % |
| 7.91 | % |
| 8.18 | % |
| 8.31 | % |
| 8.18 | % |
Common equity Tier 1 risk-based capital (well capitalized = 6.5%) |
| 10.41 |
|
| 10.17 |
|
| 10.13 |
|
| 10.16 |
|
| 10.22 |
|
| 10.41 |
|
| 10.22 |
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
| 11.10 |
|
| 10.88 |
|
| 10.82 |
|
| 10.84 |
|
| 10.91 |
|
| 11.10 |
|
| 10.91 |
|
Total risk-based capital (well capitalized = 10.0%) |
| 14.57 |
|
| 14.31 |
|
| 14.23 |
|
| 14.24 |
|
| 14.38 |
|
| 14.57 |
|
| 14.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets |
| 7.96 | % |
| 8.11 | % |
| 7.43 | % |
| 7.31 | % |
| 7.56 | % |
| 8.04 | % |
| 7.62 | % |
Equity to total assets |
| 8.05 |
|
| 7.80 |
|
| 8.02 |
|
| 7.19 |
|
| 7.31 |
|
| 8.05 |
|
| 7.31 |
|
Tangible common equity to tangible assets (6) |
| 8.04 |
|
| 7.79 |
|
| 7.82 |
|
| 7.00 |
|
| 7.12 |
|
| 8.04 |
|
| 7.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans | $ | 49,247 |
| $ | 46,263 |
| $ | 33,318 |
| $ | 34,261 |
| $ | 34,540 |
| $ | 49,247 |
| $ | 34,540 |
|
Nonperforming loans |
| 49,247 |
|
| 46,263 |
|
| 33,318 |
|
| 34,261 |
|
| 34,540 |
|
| 49,247 |
|
| 34,540 |
|
Nonperforming assets |
| 66,125 |
|
| 64,263 |
|
| 51,318 |
|
| 54,888 |
|
| 55,832 |
|
| 66,125 |
|
| 55,832 |
|
Net charge-offs (recoveries) |
| 2,549 |
|
| 4,427 |
|
| 4,736 |
|
| 3,036 |
|
| (92 | ) |
| 6,976 |
|
| (88 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to gross loans |
| 0.74 | % |
| 0.69 | % |
| 0.49 | % |
| 0.50 | % |
| 0.51 | % |
| 0.74 | % |
| 0.51 | % |
Nonperforming assets to total assets |
| 0.75 |
|
| 0.71 |
|
| 0.57 |
|
| 0.59 |
|
| 0.61 |
|
| 0.75 |
|
| 0.61 |
|
Allowance for credit losses to gross loans |
| 0.62 |
|
| 0.59 |
|
| 0.60 |
|
| 0.59 |
|
| 0.61 |
|
| 0.62 |
|
| 0.61 |
|
Allowance for credit losses to nonperforming assets |
| 62.38 |
|
| 62.30 |
|
| 78.24 |
|
| 73.50 |
|
| 74.60 |
|
| 62.38 |
|
| 74.60 |
|
Allowance for credit losses to nonperforming loans |
| 83.76 |
|
| 86.54 |
|
| 120.51 |
|
| 117.75 |
|
| 120.58 |
|
| 83.76 |
|
| 120.58 |
|
Net charge-offs (recoveries) to average loans |
| 0.15 |
|
| 0.27 |
|
| 0.28 |
|
| 0.18 |
|
| (0.01 | ) |
| 0.21 |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Full-service customer facilities |
| 29 |
|
| 28 |
|
| 28 |
|
| 28 |
|
| 27 |
|
| 29 |
|
| 27 |
|
(1) Ratios are presented on an annualized basis, where appropriate.
(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.
(4) Calculated by dividing stockholders' equity by shares outstanding.
(5) Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets. See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
(6) See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
For the three months ended |
| For the six months ended |
| ||||||||||||||||||||
(In thousands, except per share data) | June 30, |
| March 31, |
|
| December 31, |
|
| September 30, |
| June 30, |
| June 30, |
| June 30, |
| |||||||
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest and fees on loans | $ | 95,005 |
| $ | 93,032 |
|
| $ | 94,111 |
|
| $ | 95,780 |
| $ | 92,728 |
| $ | 188,037 |
| $ | 185,687 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
| 20,186 |
|
| 21,413 |
|
|
| 24,111 |
|
|
| 24,215 |
|
| 18,209 |
|
| 41,599 |
|
| 30,750 |
|
Dividends |
| 28 |
|
| 28 |
|
|
| 31 |
|
|
| 33 |
|
| 33 |
|
| 56 |
|
| 66 |
|
Other interest income |
| 2,183 |
|
| 2,063 |
|
|
| 1,787 |
|
|
| 2,565 |
|
| 2,260 |
|
| 4,246 |
|
| 6,226 |
|
Total interest and dividend income |
| 117,402 |
|
| 116,536 |
|
|
| 120,040 |
|
|
| 122,593 |
|
| 113,230 |
|
| 233,938 |
|
| 222,729 |
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
| 59,037 |
|
| 57,174 |
|
|
| 59,728 |
|
|
| 66,150 |
|
| 60,893 |
|
| 116,211 |
|
| 118,758 |
|
Other interest expense |
| 5,156 |
|
| 6,373 |
|
|
| 9,077 |
|
|
| 10,840 |
|
| 9,561 |
|
| 11,529 |
|
| 18,798 |
|
Total interest expense |
| 64,193 |
|
| 63,547 |
|
|
| 68,805 |
|
|
| 76,990 |
|
| 70,454 |
|
| 127,740 |
|
| 137,556 |
|
Net Interest Income |
| 53,209 |
|
| 52,989 |
|
|
| 51,235 |
|
|
| 45,603 |
|
| 42,776 |
|
| 106,198 |
|
| 85,173 |
|
Provision for credit losses |
| 4,194 |
|
| 4,318 |
|
|
| 6,440 |
|
|
| 1,727 |
|
| 809 |
|
| 8,512 |
|
| 1,401 |
|
Net Interest Income After Provision for Credit Losses |
| 49,015 |
|
| 48,671 |
|
|
| 44,795 |
|
|
| 43,876 |
|
| 41,967 |
|
| 97,686 |
|
| 83,772 |
|
Noninterest Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking services fee income |
| 1,948 |
|
| 1,521 |
|
|
| 2,180 |
|
|
| 1,790 |
|
| 1,583 |
|
| 3,469 |
|
| 2,977 |
|
Net loss on sale of securities |
| - |
|
| - |
|
|
| (72,315 | ) |
|
| - |
|
| - |
|
| - |
|
| - |
|
Net gain (loss) on sale of loans |
| 2,757 |
|
| 630 |
|
|
| (3,836 | ) |
|
| 137 |
|
| 26 |
|
| 3,387 |
|
| 136 |
|
Net gain (loss) from fair value adjustments |
| 1,656 |
|
| (152 | ) |
|
| (1,136 | ) |
|
| 974 |
|
| 57 |
|
| 1,504 |
|
| (777 | ) |
Federal Home Loan Bank of New York stock dividends |
| 428 |
|
| 697 |
|
|
| 754 |
|
|
| 624 |
|
| 669 |
|
| 1,125 |
|
| 1,412 |
|
Life insurance proceeds |
| - |
|
| - |
|
|
| 284 |
|
|
| 1 |
|
| - |
|
| - |
|
| - |
|
Bank owned life insurance |
| 2,835 |
|
| 1,574 |
|
|
| 2,322 |
|
|
| 1,260 |
|
| 1,223 |
|
| 4,409 |
|
| 2,423 |
|
Other income |
| 653 |
|
| 804 |
|
|
| 725 |
|
|
| 1,491 |
|
| 658 |
|
| 1,457 |
|
| 1,129 |
|
Total noninterest income (loss) |
| 10,277 |
|
| 5,074 |
|
|
| (71,022 | ) |
|
| 6,277 |
|
| 4,216 |
|
| 15,351 |
|
| 7,300 |
|
Noninterest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
| 22,648 |
|
| 22,896 |
|
|
| 25,346 |
|
|
| 22,216 |
|
| 21,723 |
|
| 45,544 |
|
| 43,836 |
|
Occupancy and equipment |
| 4,005 |
|
| 4,092 |
|
|
| 3,880 |
|
|
| 3,745 |
|
| 3,713 |
|
| 8,097 |
|
| 7,492 |
|
Professional services |
| 3,452 |
|
| 2,885 |
|
|
| 2,516 |
|
|
| 2,752 |
|
| 2,786 |
|
| 6,337 |
|
| 5,578 |
|
FDIC deposit insurance |
| 1,508 |
|
| 1,709 |
|
|
| 2,005 |
|
|
| 1,318 |
|
| 1,322 |
|
| 3,217 |
|
| 2,974 |
|
Data processing |
| 1,806 |
|
| 1,868 |
|
|
| 1,697 |
|
|
| 1,681 |
|
| 1,785 |
|
| 3,674 |
|
| 3,512 |
|
Depreciation and amortization |
| 1,367 |
|
| 1,373 |
|
|
| 1,412 |
|
|
| 1,436 |
|
| 1,425 |
|
| 2,740 |
|
| 2,882 |
|
Other real estate owned/foreclosure expense |
| 220 |
|
| 345 |
|
|
| 276 |
|
|
| 135 |
|
| 125 |
|
| 565 |
|
| 270 |
|
Gain on sale of other real estate owned |
| - |
|
| - |
|
|
| - |
|
|
| (174 | ) |
| - |
|
| - |
|
| - |
|
Prepayment penalty on borrowings |
| - |
|
| - |
|
|
| 2,572 |
|
|
| - |
|
| - |
|
| - |
|
| - |
|
Impairment of goodwill |
| - |
|
| 17,636 |
|
|
| - |
|
|
| - |
|
| - |
|
| 17,636 |
|
| - |
|
Other operating expenses |
| 5,350 |
|
| 6,872 |
|
|
| 5,926 |
|
|
| 5,587 |
|
| 6,168 |
|
| 12,222 |
|
| 12,395 |
|
Total noninterest expense |
| 40,356 |
|
| 59,676 |
|
|
| 45,630 |
|
|
| 38,696 |
|
| 39,047 |
|
| 100,032 |
|
| 78,939 |
|
Income (Loss) Before Provision (Benefit) for Income Taxes |
| 18,936 |
|
| (5,931 | ) |
|
| (71,857 | ) |
|
| 11,457 |
|
| 7,136 |
|
| 13,005 |
|
| 12,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision (Benefit) for income taxes |
| 4,733 |
|
| 3,865 |
|
|
| (22,612 | ) |
|
| 2,551 |
|
| 1,814 |
|
| 8,598 |
|
| 3,127 |
|
Net Income (Loss) | $ | 14,203 |
| $ | (9,796 | ) |
| $ | (49,245 | ) |
| $ | 8,906 |
| $ | 5,322 |
| $ | 4,407 |
| $ | 9,006 |
|
Dividends paid and earnings allocated to participating securities |
| (127 | ) |
| (132 | ) |
|
| (90 | ) |
|
| (126 | ) |
| (99 | ) |
| (259 | ) |
| (204 | ) |
Income (Loss) attributable to common stock | $ | 14,076 |
| $ | (9,928 | ) |
| $ | (49,335 | ) |
| $ | 8,780 |
| $ | 5,223 |
| $ | 8,857 |
| $ | 3,331 |
|
Divided by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding and participating securities |
| 34,511 |
|
| 34,474 |
|
|
| 30,519 |
|
|
| 29,742 |
|
| 29,789 |
|
| 34,493 |
|
| 29,765 |
|
Weighted average participating securities |
| (582 | ) |
| (542 | ) |
|
| (414 | ) |
|
| (423 | ) |
| (458 | ) |
| (562 | ) |
| (452 | ) |
Total weighted average common shares outstanding |
| 33,929 |
|
| 33,932 |
|
|
| 30,105 |
|
|
| 29,319 |
|
| 29,331 |
|
| 33,931 |
|
| 29,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic earnings (loss) per common share | $ | 0.41 |
| $ | (0.29 | ) |
| $ | (1.64 | ) |
| $ | 0.30 |
| $ | 0.18 |
| $ | 0.12 |
| $ | 0.30 |
|
Diluted earnings (loss) per common share (1) | $ | 0.41 |
| $ | (0.29 | ) |
| $ | (1.64 | ) |
| $ | 0.30 |
| $ | 0.18 |
| $ | 0.12 |
| $ | 0.30 |
|
Dividends per common share | $ | 0.22 |
| $ | 0.22 |
|
| $ | 0.22 |
|
| $ | 0.22 |
| $ | 0.22 |
| $ | 0.44 |
| $ | 0.44 |
|
(1) There were no common stock equivalents outstanding during the periods presented.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
| |||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash and due from banks |
| $ | 150,123 |
|
| $ | 271,912 |
|
| $ | 152,574 |
|
| $ | 267,643 |
|
| $ | 156,913 |
|
Securities held-to-maturity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
| 7,826 |
|
|
| 7,831 |
|
|
| 7,836 |
|
|
| 7,841 |
|
|
| 7,846 |
|
Other securities, net |
|
| 43,005 |
|
|
| 43,319 |
|
|
| 43,649 |
|
|
| 63,859 |
|
|
| 64,166 |
|
Securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
| 828,756 |
|
|
| 879,566 |
|
|
| 911,636 |
|
|
| 926,731 |
|
|
| 869,494 |
|
Other securities |
|
| 563,031 |
|
|
| 570,578 |
|
|
| 586,269 |
|
|
| 687,518 |
|
|
| 679,117 |
|
Loans held for sale |
|
| - |
|
|
| 29,624 |
|
|
| 70,098 |
|
|
| - |
|
|
| - |
|
Loans |
|
| 6,709,601 |
|
|
| 6,741,835 |
|
|
| 6,745,848 |
|
|
| 6,818,328 |
|
|
| 6,777,026 |
|
Allowance for credit losses |
|
| (41,247 | ) |
|
| (40,037 | ) |
|
| (40,152 | ) |
|
| (40,342 | ) |
|
| (41,648 | ) |
Net loans |
|
| 6,668,354 |
|
|
| 6,701,798 |
|
|
| 6,705,696 |
|
|
| 6,777,986 |
|
|
| 6,735,378 |
|
Interest and dividends receivable |
|
| 59,607 |
|
|
| 61,510 |
|
|
| 62,036 |
|
|
| 64,369 |
|
|
| 62,752 |
|
Bank premises and equipment, net |
|
| 18,145 |
|
|
| 18,181 |
|
|
| 17,852 |
|
|
| 18,544 |
|
|
| 19,426 |
|
Federal Home Loan Bank of New York stock |
|
| 23,773 |
|
|
| 18,475 |
|
|
| 38,096 |
|
|
| 32,745 |
|
|
| 46,331 |
|
Bank owned life insurance |
|
| 222,583 |
|
|
| 219,748 |
|
|
| 218,174 |
|
|
| 217,200 |
|
|
| 215,940 |
|
Goodwill |
|
| - |
|
|
| - |
|
|
| 17,636 |
|
|
| 17,636 |
|
|
| 17,636 |
|
Core deposit intangibles |
|
| 940 |
|
|
| 1,029 |
|
|
| 1,123 |
|
|
| 1,220 |
|
|
| 1,322 |
|
Right of use asset |
|
| 49,759 |
|
|
| 43,870 |
|
|
| 45,800 |
|
|
| 44,787 |
|
|
| 46,636 |
|
Other assets |
|
| 140,622 |
|
|
| 140,955 |
|
|
| 160,497 |
|
|
| 152,807 |
|
|
| 174,283 |
|
Total assets |
| $ | 8,776,524 |
|
| $ | 9,008,396 |
|
| $ | 9,038,972 |
|
| $ | 9,280,886 |
|
| $ | 9,097,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
| $ | 7,289,352 |
|
| $ | 7,718,218 |
|
| $ | 7,178,933 |
|
| $ | 7,572,395 |
|
| $ | 6,906,863 |
|
Borrowed funds |
|
| 600,171 |
|
|
| 421,542 |
|
|
| 916,054 |
|
|
| 846,123 |
|
|
| 1,316,565 |
|
Operating lease liability |
|
| 50,102 |
|
|
| 44,385 |
|
|
| 46,443 |
|
|
| 45,437 |
|
|
| 47,485 |
|
Other liabilities |
|
| 130,522 |
|
|
| 121,400 |
|
|
| 173,003 |
|
|
| 150,040 |
|
|
| 161,005 |
|
Total liabilities |
|
| 8,070,147 |
|
|
| 8,305,545 |
|
|
| 8,314,433 |
|
|
| 8,613,995 |
|
|
| 8,431,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock (5,000,000 shares authorized; none issued) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Common stock ($0.01 par value; 100,000,000 shares authorized) |
|
| 387 |
|
|
| 387 |
|
|
| 387 |
|
|
| 341 |
|
|
| 341 |
|
Additional paid-in capital |
|
| 325,162 |
|
|
| 324,290 |
|
|
| 326,671 |
|
|
| 261,274 |
|
|
| 260,585 |
|
Retained earnings |
|
| 481,077 |
|
|
| 474,472 |
|
|
| 492,003 |
|
|
| 547,708 |
|
|
| 545,345 |
|
Treasury stock |
|
| (98,985 | ) |
|
| (98,993 | ) |
|
| (101,655 | ) |
|
| (101,633 | ) |
|
| (101,633 | ) |
Accumulated other comprehensive loss, net of taxes |
|
| (1,264 | ) |
|
| 2,695 |
|
|
| 7,133 |
|
|
| (40,799 | ) |
|
| (39,316 | ) |
Total stockholders' equity |
|
| 706,377 |
|
|
| 702,851 |
|
|
| 724,539 |
|
|
| 666,891 |
|
|
| 665,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total liabilities and stockholders' equity |
| $ | 8,776,524 |
|
| $ | 9,008,396 |
|
| $ | 9,038,972 |
|
| $ | 9,280,886 |
|
| $ | 9,097,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued shares |
|
| 38,678 |
|
|
| 38,678 |
|
|
| 38,678 |
|
|
| 34,088 |
|
|
| 34,088 |
|
Outstanding shares |
|
| 33,777 |
|
|
| 33,777 |
|
|
| 33,659 |
|
|
| 29,069 |
|
|
| 29,069 |
|
Treasury shares |
|
| 4,901 |
|
|
| 4,901 |
|
|
| 5,019 |
|
|
| 5,019 |
|
|
| 5,019 |
|
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)
For the three months ended |
| For the six months ended |
| ||||||||||||||||||
(In thousands) | June 30, |
| March 31, |
| December 31, |
| September 30, |
| June 30, |
| June 30, |
| June 30, |
| |||||||
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Loans held for sale | $ | 24,708 |
| $ | 64,085 |
| $ | 762 |
| $ | - |
| $ | - |
| $ | 44,288 |
| $ | - |
|
Mortgage loans, net |
| 5,260,610 |
|
| 5,261,261 |
|
| 5,358,490 |
|
| 5,337,170 |
|
| 5,338,614 |
|
| 5,260,934 |
|
| 5,346,110 |
|
Commercial Business loans, net |
| 1,417,884 |
|
| 1,410,661 |
|
| 1,421,778 |
|
| 1,400,091 |
|
| 1,409,526 |
|
| 1,414,292 |
|
| 1,430,018 |
|
Total loans, net |
| 6,678,494 |
|
| 6,671,922 |
|
| 6,780,268 |
|
| 6,737,261 |
|
| 6,748,140 |
|
| 6,675,226 |
|
| 6,776,128 |
|
Mortgage-backed securities |
| 863,573 |
|
| 895,097 |
|
| 919,587 |
|
| 984,383 |
|
| 691,802 |
|
| 879,248 |
|
| 577,368 |
|
Other taxable securities, net |
| 573,730 |
|
| 585,219 |
|
| 652,755 |
|
| 714,161 |
|
| 663,975 |
|
| 579,443 |
|
| 627,089 |
|
Other tax-exempt securities |
| 43,489 |
|
| 43,813 |
|
| 64,531 |
|
| 65,070 |
|
| 65,451 |
|
| 43,650 |
|
| 65,695 |
|
Total securities, net |
| 1,480,792 |
|
| 1,524,129 |
|
| 1,636,873 |
|
| 1,763,614 |
|
| 1,421,228 |
|
| 1,502,341 |
|
| 1,270,152 |
|
Interest-earning deposits and federal funds sold |
| 218,588 |
|
| 208,777 |
|
| 169,579 |
|
| 208,796 |
|
| 185,626 |
|
| 213,710 |
|
| 248,796 |
|
Total interest-earning assets |
| 8,402,582 |
|
| 8,468,913 |
|
| 8,587,482 |
|
| 8,709,671 |
|
| 8,354,994 |
|
| 8,435,565 |
|
| 8,295,076 |
|
Other assets |
| 515,493 |
|
| 546,967 |
|
| 484,397 |
|
| 494,213 |
|
| 475,671 |
|
| 531,142 |
|
| 474,009 |
|
Total assets | $ | 8,918,075 |
| $ | 9,015,880 |
| $ | 9,071,879 |
| $ | 9,203,884 |
| $ | 8,830,665 |
| $ | 8,966,707 |
| $ | 8,769,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest-bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts | $ | 94,884 |
| $ | 98,224 |
| $ | 99,669 |
| $ | 102,196 |
| $ | 103,335 |
| $ | 96,545 |
| $ | 104,774 |
|
NOW accounts |
| 2,388,559 |
|
| 2,215,683 |
|
| 2,024,600 |
|
| 1,886,387 |
|
| 2,017,085 |
|
| 2,302,598 |
|
| 1,976,168 |
|
Money market accounts |
| 1,665,625 |
|
| 1,716,358 |
|
| 1,686,614 |
|
| 1,673,499 |
|
| 1,714,085 |
|
| 1,690,851 |
|
| 1,719,899 |
|
Certificate of deposit accounts |
| 2,477,716 |
|
| 2,596,714 |
|
| 2,681,742 |
|
| 2,884,280 |
|
| 2,443,047 |
|
| 2,536,886 |
|
| 2,424,665 |
|
Total due to depositors |
| 6,626,784 |
|
| 6,626,979 |
|
| 6,492,625 |
|
| 6,546,362 |
|
| 6,277,552 |
|
| 6,626,880 |
|
| 6,225,506 |
|
Mortgagors' escrow accounts |
| 104,761 |
|
| 78,655 |
|
| 87,120 |
|
| 71,965 |
|
| 95,532 |
|
| 91,780 |
|
| 84,677 |
|
Total interest-bearing deposits |
| 6,731,545 |
|
| 6,705,634 |
|
| 6,579,745 |
|
| 6,618,327 |
|
| 6,373,084 |
|
| 6,718,660 |
|
| 6,310,183 |
|
Borrowings |
| 444,854 |
|
| 555,466 |
|
| 759,962 |
|
| 886,190 |
|
| 766,984 |
|
| 499,854 |
|
| 767,315 |
|
Total interest-bearing liabilities |
| 7,176,399 |
|
| 7,261,100 |
|
| 7,339,707 |
|
| 7,504,517 |
|
| 7,140,068 |
|
| 7,218,514 |
|
| 7,077,498 |
|
Noninterest-bearing demand deposits |
| 875,535 |
|
| 855,322 |
|
| 869,759 |
|
| 845,456 |
|
| 822,856 |
|
| 865,484 |
|
| 828,537 |
|
Other liabilities |
| 156,302 |
|
| 167,866 |
|
| 188,825 |
|
| 181,149 |
|
| 200,184 |
|
| 162,053 |
|
| 194,679 |
|
Total liabilities |
| 8,208,236 |
|
| 8,284,288 |
|
| 8,398,291 |
|
| 8,531,122 |
|
| 8,163,108 |
|
| 8,246,051 |
|
| 8,100,714 |
|
Equity |
| 709,839 |
|
| 731,592 |
|
| 673,588 |
|
| 672,762 |
|
| 667,557 |
|
| 720,656 |
|
| 668,371 |
|
Total liabilities and equity | $ | 8,918,075 |
| $ | 9,015,880 |
| $ | 9,071,879 |
| $ | 9,203,884 |
| $ | 8,830,665 |
| $ | 8,966,707 |
| $ | 8,769,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest-earning assets | $ | 1,226,183 |
| $ | 1,207,813 |
| $ | 1,247,775 |
| $ | 1,205,154 |
| $ | 1,214,926 |
| $ | 1,217,051 |
| $ | 1,217,578 |
|
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST INCOME AND NET INTEREST MARGIN
(Unaudited)
| For the three months ended |
|
| For the six months ended |
| |||||||||||||||||||||||
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||||
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Loans held for sale |
| $ | 247 |
|
| $ | 664 |
|
| $ | 7 |
|
| $ | - |
|
| $ | - |
|
| $ | 911 |
|
| $ | - |
|
Mortgage loans, net |
|
| 74,240 |
|
|
| 72,391 |
|
|
| 73,252 |
|
|
| 74,645 |
|
|
| 71,968 |
|
|
| 146,631 |
|
|
| 143,540 |
|
Commercial Business loans, net |
|
| 20,518 |
|
|
| 19,977 |
|
|
| 20,852 |
|
|
| 21,135 |
|
|
| 20,760 |
|
|
| 40,495 |
|
|
| 42,147 |
|
Total loans, net |
|
| 94,758 |
|
|
| 92,368 |
|
|
| 94,104 |
|
|
| 95,780 |
|
|
| 92,728 |
|
|
| 187,126 |
|
|
| 185,687 |
|
Mortgage-backed securities |
|
| 11,709 |
|
|
| 12,528 |
|
|
| 13,884 |
|
|
| 12,443 |
|
|
| 7,462 |
|
|
| 24,237 |
|
|
| 11,158 |
|
Other taxable securities, net |
|
| 8,143 |
|
|
| 8,553 |
|
|
| 9,887 |
|
|
| 11,431 |
|
|
| 10,408 |
|
|
| 16,696 |
|
|
| 18,912 |
|
Other tax-exempt securities |
|
| 458 |
|
|
| 456 |
|
|
| 469 |
|
|
| 474 |
|
|
| 470 |
|
|
| 914 |
|
|
| 944 |
|
Total securities, net |
|
| 20,310 |
|
|
| 21,537 |
|
|
| 24,240 |
|
|
| 24,348 |
|
|
| 18,340 |
|
|
| 41,847 |
|
|
| 31,014 |
|
Interest-earning deposits and federal funds sold |
|
| 2,183 |
|
|
| 2,063 |
|
|
| 1,787 |
|
|
| 2,565 |
|
|
| 2,260 |
|
|
| 4,246 |
|
|
| 6,226 |
|
Total interest-earning assets |
|
| 117,498 |
|
|
| 116,632 |
|
|
| 120,138 |
|
|
| 122,693 |
|
|
| 113,328 |
|
|
| 234,130 |
|
|
| 222,927 |
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
| $ | 98 |
|
| $ | 110 |
|
| $ | 113 |
|
| $ | 122 |
|
| $ | 115 |
|
| $ | 208 |
|
| $ | 237 |
|
NOW accounts |
|
| 21,111 |
|
|
| 18,915 |
|
|
| 18,390 |
|
|
| 18,795 |
|
|
| 20,007 |
|
|
| 40,026 |
|
|
| 38,498 |
|
Money market accounts |
|
| 15,323 |
|
|
| 15,372 |
|
|
| 15,909 |
|
|
| 17,485 |
|
|
| 17,326 |
|
|
| 30,695 |
|
|
| 34,598 |
|
Certificate of deposit accounts |
|
| 22,443 |
|
|
| 22,710 |
|
|
| 25,258 |
|
|
| 29,676 |
|
|
| 23,383 |
|
|
| 45,153 |
|
|
| 45,301 |
|
Total due to depositors |
|
| 58,975 |
|
|
| 57,107 |
|
|
| 59,670 |
|
|
| 66,078 |
|
|
| 60,831 |
|
|
| 116,082 |
|
|
| 118,634 |
|
Mortgagors' escrow accounts |
|
| 62 |
|
|
| 67 |
|
|
| 58 |
|
|
| 72 |
|
|
| 62 |
|
|
| 129 |
|
|
| 124 |
|
Total interest-bearing deposits |
|
| 59,037 |
|
|
| 57,174 |
|
|
| 59,728 |
|
|
| 66,150 |
|
|
| 60,893 |
|
|
| 116,211 |
|
|
| 118,758 |
|
Borrowings |
|
| 5,156 |
|
|
| 6,373 |
|
|
| 9,077 |
|
|
| 10,840 |
|
|
| 9,561 |
|
|
| 11,529 |
|
|
| 18,798 |
|
Total interest-bearing liabilities |
|
| 64,193 |
|
|
| 63,547 |
|
|
| 68,805 |
|
|
| 76,990 |
|
|
| 70,454 |
|
|
| 127,740 |
|
|
| 137,556 |
|
Net interest income- tax equivalent |
| $ | 53,305 |
|
| $ | 53,085 |
|
| $ | 51,333 |
|
| $ | 45,703 |
|
| $ | 42,874 |
|
| $ | 106,390 |
|
| $ | 85,371 |
|
Included in net interest income above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Episodic items (1) |
| $ | 878 |
|
| $ | 294 |
|
| $ | 648 |
|
| $ | 1,647 |
|
| $ | 369 |
|
| $ | 1,172 |
|
| $ | 1,297 |
|
Net gains/(losses) from fair value adjustments on hedges included in net interest income |
|
| 64 |
|
|
| 56 |
|
|
| 2,911 |
|
|
| 554 |
|
|
| 177 |
|
|
| 120 |
|
|
| (10 | ) |
Purchase accounting adjustments |
|
| 257 |
|
|
| 252 |
|
|
| 191 |
|
|
| 155 |
|
|
| 182 |
|
|
| 509 |
|
|
| 453 |
|
Interest-earning Assets Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
| 4.00 | % |
|
| 4.14 | % |
|
| 3.67 | % |
|
| - | % |
|
| - | % |
|
| 4.11 | % |
|
| - | % |
Mortgage loans, net |
|
| 5.64 |
|
|
| 5.50 |
|
|
| 5.47 |
|
|
| 5.59 |
|
|
| 5.39 |
|
|
| 5.57 |
|
|
| 5.37 |
|
Commercial Business loans, net |
|
| 5.79 |
|
|
| 5.66 |
|
|
| 5.87 |
|
|
| 6.04 |
|
|
| 5.89 |
|
|
| 5.73 |
|
|
| 5.89 |
|
Total loans, net |
|
| 5.68 |
|
|
| 5.54 |
|
|
| 5.55 |
|
|
| 5.69 |
|
|
| 5.50 |
|
|
| 5.61 |
|
|
| 5.48 |
|
Mortgage-backed securities |
|
| 5.42 |
|
|
| 5.60 |
|
|
| 6.04 |
|
|
| 5.06 |
|
|
| 4.31 |
|
|
| 5.51 |
|
|
| 3.87 |
|
Other taxable securities, net |
|
| 5.68 |
|
|
| 5.85 |
|
|
| 6.06 |
|
|
| 6.40 |
|
|
| 6.27 |
|
|
| 5.76 |
|
|
| 6.03 |
|
Other tax-exempt securities(2) |
|
| 4.21 |
|
|
| 4.16 |
|
|
| 2.91 |
|
|
| 2.91 |
|
|
| 2.87 |
|
|
| 4.19 |
|
|
| 2.87 |
|
Total securities, net |
|
| 5.49 |
|
|
| 5.65 |
|
|
| 5.92 |
|
|
| 5.52 |
|
|
| 5.16 |
|
|
| 5.57 |
|
|
| 4.88 |
|
Interest-earning deposits and federal funds sold |
|
| 3.99 |
|
|
| 3.95 |
|
|
| 4.22 |
|
|
| 4.91 |
|
|
| 4.87 |
|
|
| 3.97 |
|
|
| 5.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total interest-earning assets (1) |
|
| 5.59 | % |
|
| 5.51 | % |
|
| 5.60 | % |
|
| 5.63 | % |
|
| 5.43 | % |
|
| 5.55 | % |
|
| 5.37 | % |
Interest-bearing Liabilities Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
| 0.41 | % |
|
| 0.45 | % |
|
| 0.45 | % |
|
| 0.48 | % |
|
| 0.45 | % |
|
| 0.43 | % |
|
| 0.45 | % |
NOW accounts |
|
| 3.54 |
|
|
| 3.41 |
|
|
| 3.63 |
|
|
| 3.99 |
|
|
| 3.97 |
|
|
| 3.48 |
|
|
| 3.90 |
|
Money market accounts |
|
| 3.68 |
|
|
| 3.58 |
|
|
| 3.77 |
|
|
| 4.18 |
|
|
| 4.04 |
|
|
| 3.63 |
|
|
| 4.02 |
|
Certificate of deposit accounts |
|
| 3.62 |
|
|
| 3.50 |
|
|
| 3.77 |
|
|
| 4.12 |
|
|
| 3.83 |
|
|
| 3.56 |
|
|
| 3.74 |
|
Total due to depositors |
|
| 3.56 |
|
|
| 3.45 |
|
|
| 3.68 |
|
|
| 4.04 |
|
|
| 3.88 |
|
|
| 3.50 |
|
|
| 3.81 |
|
Mortgagors' escrow accounts |
|
| 0.24 |
|
|
| 0.34 |
|
|
| 0.27 |
|
|
| 0.40 |
|
|
| 0.26 |
|
|
| 0.28 |
|
|
| 0.29 |
|
Total interest-bearing deposits |
|
| 3.51 |
|
|
| 3.41 |
|
|
| 3.63 |
|
|
| 4.00 |
|
|
| 3.82 |
|
|
| 3.46 |
|
|
| 3.76 |
|
Borrowings |
|
| 4.64 |
|
|
| 4.59 |
|
|
| 4.78 |
|
|
| 4.89 |
|
|
| 4.99 |
|
|
| 4.61 |
|
|
| 4.90 |
|
Total interest-bearing liabilities |
|
| 3.58 | % |
|
| 3.50 | % |
|
| 3.75 | % |
|
| 4.10 | % |
|
| 3.95 | % |
|
| 3.54 | % |
|
| 3.89 | % |
Net interest rate spread (tax equivalent) (1) |
|
| 2.01 | % |
|
| 2.01 | % |
|
| 1.85 | % |
|
| 1.53 | % |
|
| 1.48 | % |
|
| 2.01 | % |
|
| 1.48 | % |
Net interest margin (tax equivalent) (1) |
|
| 2.54 | % |
|
| 2.51 | % |
|
| 2.39 | % |
|
| 2.10 | % |
|
| 2.05 | % |
|
| 2.52 | % |
|
| 2.06 | % |
Ratio of interest-earning assets to interest-bearing liabilities |
|
| 1.17 | X |
|
| 1.17 | X |
|
| 1.17 | X |
|
| 1.16 | X |
|
| 1.17 | X |
|
| 1.17 | X |
|
| 1.17 | X |
(1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.
(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT and LOAN COMPOSITION
(Unaudited)
Deposit Composition
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| 2Q25 vs. |
|
| 2Q25 vs. | |||||||||
Noninterest bearing |
| $ | 899,602 |
|
| $ | 863,714 |
|
| $ | 836,545 |
|
| $ | 860,930 |
|
| $ | 825,327 |
|
|
| 4.2 | % |
|
|
| 9.0 | % |
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate of deposit accounts |
|
| 2,452,624 |
|
|
| 2,592,026 |
|
|
| 2,650,164 |
|
|
| 2,875,486 |
|
|
| 2,435,894 |
|
|
| (5.4 | ) |
|
|
| 0.7 |
|
Savings accounts |
|
| 92,699 |
|
|
| 97,624 |
|
|
| 98,964 |
|
|
| 100,279 |
|
|
| 103,296 |
|
|
| (5.0 | ) |
|
|
| (10.3 | ) |
Money market accounts |
|
| 1,601,948 |
|
|
| 1,681,608 |
|
|
| 1,686,109 |
|
|
| 1,659,027 |
|
|
| 1,710,376 |
|
|
| (4.7 | ) |
|
|
| (6.3 | ) |
NOW accounts |
|
| 2,174,124 |
|
|
| 2,393,482 |
|
|
| 1,854,069 |
|
|
| 2,003,301 |
|
|
| 1,774,268 |
|
|
| (9.2 | ) |
|
|
| 22.5 |
|
Total interest-bearing deposits |
|
| 6,321,395 |
|
|
| 6,764,740 |
|
|
| 6,289,306 |
|
|
| 6,638,093 |
|
|
| 6,023,834 |
|
|
| (6.6 | ) |
|
|
| 4.9 |
|
Total due to depositors |
|
| 7,220,997 |
|
|
| 7,628,454 |
|
|
| 7,125,851 |
|
|
| 7,499,023 |
|
|
| 6,849,161 |
|
|
| (5.3 | ) |
|
|
| 5.4 |
|
Mortgagors' escrow deposits |
|
| 68,355 |
|
|
| 89,764 |
|
|
| 53,082 |
|
|
| 73,372 |
|
|
| 57,702 |
|
|
| (23.9 | ) |
|
|
| 18.5 |
|
Total deposits |
| $ | 7,289,352 |
|
| $ | 7,718,218 |
|
| $ | 7,178,933 |
|
| $ | 7,572,395 |
|
| $ | 6,906,863 |
|
|
| (5.6 | )% |
|
|
| 5.5 | % |
Loan Composition
(Dollars in thousands) |
| June 30, 2025 |
|
| March 31, 2025 |
|
| December 31, 2024 |
|
| September 30, 2024 |
|
| June 30, 2024 |
|
| 2Q25 vs. |
|
| 2Q25 vs. |
| |||||||
Multifamily residential |
| $ | 2,487,610 |
|
| $ | 2,531,628 |
|
| $ | 2,527,222 |
|
| $ | 2,638,863 |
|
| $ | 2,631,751 |
|
|
| (1.7 | )% |
|
| (5.5 | )% |
Commercial real estate |
|
| 1,987,523 |
|
|
| 1,953,710 |
|
|
| 1,973,124 |
|
|
| 1,929,093 |
|
|
| 1,894,509 |
|
|
| 1.7 |
|
|
| 4.9 |
|
One-to-four family - mixed use property |
|
| 493,846 |
|
|
| 501,562 |
|
|
| 511,222 |
|
|
| 515,511 |
|
|
| 518,510 |
|
|
| (1.5 | ) |
|
| (4.8 | ) |
One-to-four family - residential |
|
| 258,608 |
|
|
| 269,492 |
|
|
| 244,282 |
|
|
| 252,293 |
|
|
| 261,716 |
|
|
| (4.0 | ) |
|
| (1.2 | ) |
Construction |
|
| 46,798 |
|
|
| 63,474 |
|
|
| 60,399 |
|
|
| 63,674 |
|
|
| 65,161 |
|
|
| (26.3 | ) |
|
| (28.2 | ) |
Mortgage loans |
|
| 5,274,385 |
|
|
| 5,319,866 |
|
|
| 5,316,249 |
|
|
| 5,399,434 |
|
|
| 5,371,647 |
|
|
| (0.9 | ) |
|
| (1.8 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Small Business Administration |
|
| 15,473 |
|
|
| 14,713 |
|
|
| 19,925 |
|
|
| 19,368 |
|
|
| 13,957 |
|
|
| 5.2 |
|
|
| 10.9 |
|
Commercial business and other |
|
| 1,407,792 |
|
|
| 1,396,597 |
|
|
| 1,401,602 |
|
|
| 1,387,965 |
|
|
| 1,389,711 |
|
|
| 0.8 |
|
|
| 1.3 |
|
Commercial Business loans |
|
| 1,423,265 |
|
|
| 1,411,310 |
|
|
| 1,421,527 |
|
|
| 1,407,333 |
|
|
| 1,403,668 |
|
|
| 0.8 |
|
|
| 1.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gross loans |
|
| 6,697,650 |
|
|
| 6,731,176 |
|
|
| 6,737,776 |
|
|
| 6,806,767 |
|
|
| 6,775,315 |
|
|
| (0.5 | ) |
|
| (1.1 | ) |
Net unamortized (premiums) and unearned loan (cost) fees (1) |
|
| 11,951 |
|
|
| 10,659 |
|
|
| 8,072 |
|
|
| 11,561 |
|
|
| 1,711 |
|
|
| 12.1 |
|
|
| 598.5 |
|
Allowance for credit losses |
|
| (41,247 | ) |
|
| (40,037 | ) |
|
| (40,152 | ) |
|
| (40,342 | ) |
|
| (41,648 | ) |
|
| 3.0 |
|
|
| (1.0 | ) |
Net loans |
| $ | 6,668,354 |
|
| $ | 6,701,798 |
|
| $ | 6,705,696 |
|
| $ | 6,777,986 |
|
| $ | 6,735,378 |
|
|
| (0.5 | )% |
|
| (1.0 | )% |
(1) Includes $2.3 million, $2.6 million, $2.8 million, $3.1 million, and $3.4 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOAN CLOSINGS and RATES
(Unaudited)
Loan Closings
| For the three months ended |
|
| For the six months ended |
| |||||||||||||||||||||||
(In thousands) |
| June 30, 2025 |
|
| March 31, 2025 |
|
| December 31, 2024 |
|
| September 30, 2024 |
|
| June 30, 2024 |
|
| June 30, |
|
| June 30, 2024 |
| |||||||
Multifamily residential |
| $ | 8,546 |
|
| $ | 21,183 |
|
| $ | 25,232 |
|
| $ | 50,528 |
|
| $ | 27,966 |
|
| $ | 29,729 |
|
| $ | 39,771 |
|
Commercial real estate |
|
| 57,533 |
|
|
| 22,916 |
|
|
| 75,285 |
|
|
| 56,713 |
|
|
| 20,573 |
|
|
| 80,449 |
|
|
| 30,613 |
|
One-to-four family - mixed use property |
|
| 3,039 |
|
|
| 1,842 |
|
|
| 6,622 |
|
|
| 5,709 |
|
|
| 3,980 |
|
|
| 4,881 |
|
|
| 4,730 |
|
One-to-four family - residential |
|
| 411 |
|
|
| 35,206 |
|
|
| 739 |
|
|
| 1,705 |
|
|
| 689 |
|
|
| 35,617 |
|
|
| 53,228 |
|
Construction |
|
| 2,469 |
|
|
| 3,275 |
|
|
| 9,338 |
|
|
| 5,063 |
|
|
| 4,594 |
|
|
| 5,744 |
|
|
| 6,489 |
|
Mortgage loans |
|
| 71,998 |
|
|
| 84,422 |
|
|
| 117,216 |
|
|
| 119,718 |
|
|
| 57,802 |
|
|
| 156,420 |
|
|
| 134,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Small Business Administration |
|
| 2,457 |
|
|
| 1,250 |
|
|
| 1,368 |
|
|
| 5,930 |
|
|
| - |
|
|
| 3,707 |
|
|
| - |
|
Commercial business and other |
|
| 84,721 |
|
|
| 88,404 |
|
|
| 106,580 |
|
|
| 91,447 |
|
|
| 68,162 |
|
|
| 173,125 |
|
|
| 121,117 |
|
Commercial Business loans |
|
| 87,178 |
|
|
| 89,654 |
|
|
| 107,948 |
|
|
| 97,377 |
|
|
| 68,162 |
|
|
| 176,832 |
|
|
| 121,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Closings |
| $ | 159,176 |
|
| $ | 174,076 |
|
| $ | 225,164 |
|
| $ | 217,095 |
|
| $ | 125,964 |
|
| $ | 333,252 |
|
| $ | 255,948 |
|
Weighted Average Rate on Loan Closings
| For the three months ended |
| ||||||||||||||||||
Loan type |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
| |||||
Mortgage loans |
|
| 6.87 | % |
|
| 6.68 | % |
|
| 7.12 | % |
|
| 7.31 | % |
|
| 7.58 | % |
Commercial Business loans |
|
| 7.25 |
|
|
| 7.28 |
|
|
| 7.45 |
|
|
| 7.75 |
|
|
| 7.94 |
|
Total loans |
|
| 7.08 | % |
|
| 6.99 | % |
|
| 7.28 | % |
|
| 7.51 | % |
|
| 7.77 | % |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)
Allowance for Credit Losses
| For the three months ended |
|
| For the six months ended |
| |||||||||||||||||||||||
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||||
Allowance for credit losses - loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Beginning balances |
| $ | 40,037 |
|
| $ | 40,152 |
|
| $ | 40,342 |
|
| $ | 41,648 |
|
| $ | 40,752 |
|
| $ | 40,152 |
|
| $ | 40,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loan charge-off (recoveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multifamily residential |
|
| 1,677 |
|
|
| 4 |
|
|
| (1 | ) |
|
| - |
|
|
| (1 | ) |
|
| 1,681 |
|
|
| (1 | ) |
Commercial real estate |
|
| 72 |
|
|
| - |
|
|
| 421 |
|
|
| - |
|
|
| - |
|
|
| 72 |
|
|
| - |
|
One-to-four family - mixed-use property |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2 | ) |
|
| - |
|
|
| (2 | ) |
One-to-four family - residential |
|
| - |
|
|
| - |
|
|
| (41 | ) |
|
| (58 | ) |
|
| (2 | ) |
|
| - |
|
|
| 11 |
|
Small Business Administration |
|
| (4 | ) |
|
| (40 | ) |
|
| (4 | ) |
|
| (1 | ) |
|
| (91 | ) |
|
| (44 | ) |
|
| (96 | ) |
Commercial business and other |
|
| 804 |
|
|
| 4,463 |
|
|
| 4,361 |
|
|
| 3,095 |
|
|
| 4 |
|
|
| 5,267 |
|
|
| - |
|
Total net loan charge-offs (recoveries) |
|
| 2,549 |
|
|
| 4,427 |
|
|
| 4,736 |
|
|
| 3,036 |
|
|
| (92 | ) |
|
| 6,976 |
|
|
| (88 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision (benefit) for loan losses |
|
| 3,759 |
|
|
| 4,312 |
|
|
| 4,546 |
|
|
| 1,730 |
|
|
| 804 |
|
|
| 8,071 |
|
|
| 1,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ending balance |
| $ | 41,247 |
|
| $ | 40,037 |
|
| $ | 40,152 |
|
| $ | 40,342 |
|
| $ | 41,648 |
|
| $ | 41,247 |
|
| $ | 41,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gross charge-offs |
| $ | 2,857 |
|
| $ | 4,471 |
|
| $ | 4,790 |
|
| $ | 3,110 |
|
| $ | 11 |
|
| $ | 7,328 |
|
| $ | 69 |
|
Gross recoveries |
|
| 308 |
|
|
| 44 |
|
|
| 54 |
|
|
| 74 |
|
|
| 103 |
|
|
| 352 |
|
|
| 157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Allowance for credit losses - loans to gross loans |
|
| 0.62 | % |
|
| 0.59 | % |
|
| 0.60 | % |
|
| 0.59 | % |
|
| 0.61 | % |
|
| 0.62 | % |
|
| 0.61 | % |
Net loan charge-offs (recoveries) to average loans |
|
| 0.15 |
|
|
| 0.27 |
|
|
| 0.28 |
|
|
| 0.18 |
|
|
| (0.01 | ) |
|
| 0.21 |
|
|
| - |
|
Nonperforming Assets
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
| |||||
Nonaccrual Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Multifamily residential |
|
| 12,364 |
|
|
| 25,952 |
|
|
| 11,031 |
|
|
| 9,478 |
|
|
| 13,774 |
|
Commercial real estate |
|
| 23,481 |
|
|
| 6,703 |
|
|
| 6,283 |
|
|
| 6,705 |
|
|
| - |
|
One-to-four family - mixed-use property |
|
| 422 |
|
|
| 426 |
|
|
| 116 |
|
|
| 369 |
|
|
| 909 |
|
One-to-four family - residential |
|
| 2,277 |
|
|
| 1,225 |
|
|
| 1,428 |
|
|
| 1,493 |
|
|
| 3,633 |
|
Small Business Administration |
|
| 2,445 |
|
|
| 2,445 |
|
|
| 2,445 |
|
|
| 2,445 |
|
|
| 2,552 |
|
Commercial business and other |
|
| 8,258 |
|
|
| 9,512 |
|
|
| 12,015 |
|
|
| 13,771 |
|
|
| 13,672 |
|
Total Nonaccrual loans |
|
| 49,247 |
|
|
| 46,263 |
|
|
| 33,318 |
|
|
| 34,261 |
|
|
| 34,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Nonperforming Loans (NPLs) |
|
| 49,247 |
|
|
| 46,263 |
|
|
| 33,318 |
|
|
| 34,261 |
|
|
| 34,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other Nonperforming Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate acquired through foreclosure |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 665 |
|
Total Other nonperforming assets |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Nonaccrual HTM Securities |
|
| 16,878 |
|
|
| 18,000 |
|
|
| 18,000 |
|
|
| 20,627 |
|
|
| 20,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Nonperforming Assets |
| $ | 66,125 |
|
| $ | 64,263 |
|
| $ | 51,318 |
|
| $ | 54,888 |
|
| $ | 55,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Nonperforming Assets to Total Assets |
|
| 0.75 | % |
|
| 0.71 | % |
|
| 0.57 | % |
|
| 0.59 | % |
|
| 0.61 | % |
Allowance for Credit Losses to NPLs |
|
| 83.8 | % |
|
| 86.5 | % |
|
| 120.5 | % |
|
| 117.7 | % |
|
| 120.6 | % |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS (LOSS) and CORE EARNINGS
Non-cash Fair Value Adjustments to GAAP Earnings (Loss)
The variance in GAAP earnings (loss) and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to borrowings carried at fair value under the fair value option.
Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense 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 noninterest 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 this measure is 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 GAAP EARNINGS (LOSS) and CORE EARNINGS
(Unaudited)
(Dollars in thousands, except per share data) |
| For the three months ended |
|
| For the six months ended |
| ||||||||||||||||||||||
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
GAAP income (loss) before income taxes |
| $ | 18,936 |
|
| $ | (5,931 | ) |
| $ | (71,857 | ) |
| $ | 11,457 |
|
| $ | 7,136 |
|
| $ | 13,005 |
|
| $ | 12,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net (gain) loss from fair value adjustments (Noninterest income (loss)) |
|
| (1,656 | ) |
|
| 152 |
|
|
| 1,136 |
|
|
| (974 | ) |
|
| (57 | ) |
|
| (1,504 | ) |
|
| 777 |
|
Net loss on sale of securities (Noninterest income (loss)) |
|
| - |
|
|
| - |
|
|
| 72,315 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Life insurance proceeds (Noninterest income (loss)) |
|
| - |
|
|
| - |
|
|
| (284 | ) |
|
| (1 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
Valuation allowance on loans transferred to held for sale (Noninterest income (loss)) |
|
| (2,590 | ) |
|
| 194 |
|
|
| 3,836 |
|
|
| - |
|
|
| - |
|
|
| (2,396 | ) |
|
| - |
|
Net (gain) loss from fair value adjustments on hedges (Net interest income) |
|
| (64 | ) |
|
| (56 | ) |
|
| (2,911 | ) |
|
| (554 | ) |
|
| (177 | ) |
|
| (120 | ) |
|
| 10 |
|
Prepayment penalty on borrowings (Noninterest expense) |
|
| - |
|
|
| - |
|
|
| 2,572 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net amortization of purchase accounting adjustments and intangibles (Various) |
|
| (176 | ) |
|
| (167 | ) |
|
| (101 | ) |
|
| (62 | ) |
|
| (85 | ) |
|
| (343 | ) |
|
| (254 | ) |
Impairment of goodwill (Noninterest expense) |
|
| - |
|
|
| 17,636 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 17,636 |
|
|
| - |
|
Miscellaneous expense (Professional services) |
|
| 395 |
|
|
| (1 | ) |
|
| 218 |
|
|
| 10 |
|
|
| 494 |
|
|
| 394 |
|
|
| 494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core income before taxes |
|
| 14,845 |
|
|
| 11,827 |
|
|
| 4,924 |
|
|
| 9,876 |
|
|
| 7,311 |
|
|
| 26,672 |
|
|
| 13,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision for core income taxes |
|
| 3,683 |
|
|
| 3,896 |
|
|
| 715 |
|
|
| 2,153 |
|
|
| 1,855 |
|
|
| 7,579 |
|
|
| 3,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core net income |
| $ | 11,162 |
|
| $ | 7,931 |
|
| $ | 4,209 |
|
| $ | 7,723 |
|
| $ | 5,456 |
|
| $ | 19,093 |
|
| $ | 9,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP diluted earnings (loss) per common share |
| $ | 0.41 |
|
| $ | (0.29 | ) |
| $ | (1.64 | ) |
| $ | 0.30 |
|
| $ | 0.18 |
|
| $ | 0.12 |
|
| $ | 0.30 |
|
Net (gain) loss from fair value adjustments, net of tax |
|
| (0.04 | ) |
|
| - |
|
|
| 0.03 |
|
|
| (0.02 | ) |
|
| (0.01 | ) |
|
| (0.03 | ) |
|
| 0.02 |
|
Net loss on sale of securities, net of tax |
|
| - |
|
|
| - |
|
|
| 1.65 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Life insurance proceeds |
|
| - |
|
|
| - |
|
|
| (0.01 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Valuation allowance on loans transferred to held for sale, net of tax |
|
| (0.06 | ) |
|
| - |
|
|
| 0.09 |
|
|
| - |
|
|
| - |
|
|
| (0.05 | ) |
|
| - |
|
Net (gain) loss from fair value adjustments on hedges, net of tax |
|
| - |
|
|
| - |
|
|
| (0.05 | ) |
|
| (0.01 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
Prepayment penalty on borrowings, net of tax |
|
| - |
|
|
| - |
|
|
| 0.04 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net amortization of purchase accounting adjustments, net of tax |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (0.01 | ) |
|
| (0.01 | ) |
Impairment of goodwill |
|
| - |
|
|
| 0.51 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 0.51 |
|
|
| - |
|
Miscellaneous expense, net of tax |
|
| 0.01 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 0.01 |
|
|
| 0.01 |
|
|
| 0.01 |
|
Loss not attributable to participating securities |
|
| - |
|
|
| - |
|
|
| 0.03 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core diluted earnings per common share(1) |
| $ | 0.32 |
|
| $ | 0.23 |
|
| $ | 0.14 |
|
| $ | 0.26 |
|
| $ | 0.18 |
|
| $ | 0.55 |
|
| $ | 0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core net income, as calculated above |
| $ | 11,162 |
|
| $ | 7,931 |
|
| $ | 4,209 |
|
| $ | 7,723 |
|
| $ | 5,456 |
|
| $ | 19,093 |
|
| $ | 9,768 |
|
Average assets |
|
| 8,918,075 |
|
|
| 9,015,880 |
|
|
| 9,060,481 |
|
|
| 9,203,884 |
|
|
| 8,830,665 |
|
|
| 8,966,707 |
|
|
| 8,769,085 |
|
Average equity |
|
| 709,839 |
|
|
| 731,592 |
|
|
| 662,190 |
|
|
| 672,762 |
|
|
| 667,557 |
|
|
| 720,656 |
|
|
| 668,371 |
|
Core return on average assets(2) |
|
| 0.50 | % |
|
| 0.35 | % |
|
| 0.19 | % |
|
| 0.34 | % |
|
| 0.25 | % |
|
| 0.43 | % |
|
| 0.22 | % |
Core return on average equity(2) |
|
| 6.29 | % |
|
| 4.34 | % |
|
| 2.54 | % |
|
| 4.59 | % |
|
| 3.27 | % |
|
| 5.30 | % |
|
| 2.92 | % |
(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 SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE and PRE-PROVISION
PRE-TAX NET REVENUE
(Unaudited)
| For the three months ended |
|
| For the six months ended |
| |||||||||||||||||||||||
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
GAAP Net interest income |
| $ | 53,209 |
|
| $ | 52,989 |
|
| $ | 51,235 |
|
| $ | 45,603 |
|
| $ | 42,776 |
|
| $ | 106,198 |
|
| $ | 85,173 |
|
Net (gain) loss from fair value adjustments on hedges |
|
| (64 | ) |
|
| (56 | ) |
|
| (2,911 | ) |
|
| (554 | ) |
|
| (177 | ) |
|
| (120 | ) |
|
| 10 |
|
Net amortization of purchase accounting adjustments |
|
| (257 | ) |
|
| (252 | ) |
|
| (191 | ) |
|
| (155 | ) |
|
| (182 | ) |
|
| (509 | ) |
|
| (453 | ) |
Core Net interest income |
| $ | 52,888 |
|
| $ | 52,681 |
|
| $ | 48,133 |
|
| $ | 44,894 |
|
| $ | 42,417 |
|
| $ | 105,569 |
|
| $ | 84,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP Noninterest income (loss) |
| $ | 10,277 |
|
| $ | 5,074 |
|
| $ | (71,022 | ) |
| $ | 6,277 |
|
| $ | 4,216 |
|
| $ | 15,351 |
|
| $ | 7,300 |
|
Net (gain) loss from fair value adjustments |
|
| (1,656 | ) |
|
| 152 |
|
|
| 1,136 |
|
|
| (974 | ) |
|
| (57 | ) |
|
| (1,504 | ) |
|
| 777 |
|
Net loss on sale of securities |
|
| - |
|
|
| - |
|
|
| 72,315 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
(Reversal) Valuation allowance on loans transferred to held for sale |
|
| (2,590 | ) |
|
| 194 |
|
|
| 3,836 |
|
|
| - |
|
|
| - |
|
|
| (2,396 | ) |
|
| - |
|
Life insurance proceeds |
|
| - |
|
|
| - |
|
|
| (284 | ) |
|
| (1 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
Core Noninterest income |
| $ | 6,031 |
|
| $ | 5,420 |
|
| $ | 5,981 |
|
| $ | 5,302 |
|
| $ | 4,159 |
|
| $ | 11,451 |
|
| $ | 8,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP Noninterest expense |
| $ | 40,356 |
|
| $ | 59,676 |
|
| $ | 45,630 |
|
| $ | 38,696 |
|
| $ | 39,047 |
|
| $ | 100,032 |
|
| $ | 78,939 |
|
Prepayment penalty on borrowings |
|
| - |
|
|
| - |
|
|
| (2,572 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net amortization of purchase accounting adjustments |
|
| (81 | ) |
|
| (85 | ) |
|
| (90 | ) |
|
| (93 | ) |
|
| (97 | ) |
|
| (166 | ) |
|
| (199 | ) |
Impairment of goodwill |
|
| - |
|
|
| (17,636 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (17,636 | ) |
|
| - |
|
Miscellaneous expense |
|
| (395 | ) |
|
| 1 |
|
|
| (218 | ) |
|
| (10 | ) |
|
| (494 | ) |
|
| (394 | ) |
|
| (494 | ) |
Core Noninterest expense |
| $ | 39,880 |
|
| $ | 41,956 |
|
| $ | 42,750 |
|
| $ | 38,593 |
|
| $ | 38,456 |
|
| $ | 81,836 |
|
| $ | 78,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net interest income |
| $ | 53,209 |
|
| $ | 52,989 |
|
| $ | 51,235 |
|
| $ | 45,603 |
|
| $ | 42,776 |
|
| $ | 106,198 |
|
| $ | 85,173 |
|
Noninterest income (loss) |
|
| 10,277 |
|
|
| 5,074 |
|
|
| (71,022 | ) |
|
| 6,277 |
|
|
| 4,216 |
|
|
| 15,351 |
|
|
| 7,300 |
|
Noninterest expense |
|
| (40,356 | ) |
|
| (59,676 | ) |
|
| (45,630 | ) |
|
| (38,696 | ) |
|
| (39,047 | ) |
|
| (100,032 | ) |
|
| (78,939 | ) |
Pre-provision pre-tax net (loss) revenue |
| $ | 23,130 |
|
| $ | (1,613 | ) |
| $ | (65,417 | ) |
| $ | 13,184 |
|
| $ | 7,945 |
|
| $ | 21,517 |
|
| $ | 13,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
| $ | 52,888 |
|
| $ | 52,681 |
|
| $ | 48,133 |
|
| $ | 44,894 |
|
| $ | 42,417 |
|
| $ | 105,569 |
|
| $ | 84,730 |
|
Noninterest income |
|
| 6,031 |
|
|
| 5,420 |
|
|
| 5,981 |
|
|
| 5,302 |
|
|
| 4,159 |
|
|
| 11,451 |
|
|
| 8,077 |
|
Noninterest expense |
|
| (39,880 | ) |
|
| (41,956 | ) |
|
| (42,750 | ) |
|
| (38,593 | ) |
|
| (38,456 | ) |
|
| (81,836 | ) |
|
| (78,246 | ) |
Pre-provision pre-tax net revenue |
| $ | 19,039 |
|
| $ | 16,145 |
|
| $ | 11,364 |
|
| $ | 11,603 |
|
| $ | 8,120 |
|
| $ | 35,184 |
|
| $ | 14,561 |
|
Efficiency Ratio |
|
| 67.7 | % |
|
| 72.2 | % |
|
| 79.0 | % |
|
| 77.2 | % |
|
| 82.6 | % |
|
| 69.9 | % |
|
| 84.3 | % |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN
to CORE NET INTEREST INCOME
(Unaudited)
| For the three months ended |
|
| For the six months ended |
| |||||||||||||||||||||||
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||||
GAAP net interest income |
| $ | 53,209 |
|
| $ | 52,989 |
|
| $ | 51,235 |
|
| $ | 45,603 |
|
| $ | 42,776 |
|
| $ | 106,198 |
|
| $ | 85,173 |
|
Net (gain) loss from fair value adjustments on hedges |
|
| (64 | ) |
|
| (56 | ) |
|
| (2,911 | ) |
|
| (554 | ) |
|
| (177 | ) |
|
| (120 | ) |
|
| 10 |
|
Net amortization of purchase accounting adjustments |
|
| (257 | ) |
|
| (252 | ) |
|
| (191 | ) |
|
| (155 | ) |
|
| (182 | ) |
|
| (509 | ) |
|
| (453 | ) |
Tax equivalent adjustment |
|
| 96 |
|
|
| 96 |
|
|
| 98 |
|
|
| 100 |
|
|
| 98 |
|
|
| 192 |
|
|
| 198 |
|
Core net interest income FTE |
| $ | 52,984 |
|
| $ | 52,777 |
|
| $ | 48,231 |
|
| $ | 44,994 |
|
| $ | 42,515 |
|
| $ | 105,761 |
|
| $ | 84,928 |
|
Episodic items (1) |
|
| (878 | ) |
|
| (294 | ) |
|
| (648 | ) |
|
| (1,647 | ) |
|
| (369 | ) |
|
| (1,172 | ) |
|
| (1,297 | ) |
Net interest income FTE excluding episodic items |
| $ | 52,106 |
|
| $ | 52,483 |
|
| $ | 47,583 |
|
| $ | 43,347 |
|
| $ | 42,146 |
|
| $ | 104,589 |
|
| $ | 83,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total average interest-earning assets (2) |
| $ | 8,405,053 |
|
| $ | 8,471,609 |
|
| $ | 8,590,022 |
|
| $ | 8,712,443 |
|
| $ | 8,358,006 |
|
| $ | 8,438,149 |
|
| $ | 8,298,199 |
|
Core net interest margin FTE |
|
| 2.52 | % |
|
| 2.49 | % |
|
| 2.25 | % |
|
| 2.07 | % |
|
| 2.03 | % |
|
| 2.51 | % |
|
| 2.05 | % |
Net interest margin FTE excluding episodic items |
|
| 2.48 | % |
|
| 2.48 | % |
|
| 2.22 | % |
|
| 1.99 | % |
|
| 2.02 | % |
|
| 2.48 | % |
|
| 2.02 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP interest income on total loans, net (3) |
| $ | 94,758 |
|
| $ | 92,368 |
|
| $ | 94,104 |
|
| $ | 95,780 |
|
| $ | 92,728 |
|
| $ | 187,126 |
|
| $ | 185,687 |
|
Net (gain) loss from fair value adjustments on hedges - loans |
|
| (64 | ) |
|
| (56 | ) |
|
| 29 |
|
|
| (364 | ) |
|
| (137 | ) |
|
| (120 | ) |
|
| (14 | ) |
Net amortization of purchase accounting adjustments |
|
| (260 | ) |
|
| (252 | ) |
|
| (216 | ) |
|
| (168 | ) |
|
| (198 | ) |
|
| (512 | ) |
|
| (493 | ) |
Core interest income on total loans, net |
| $ | 94,434 |
|
| $ | 92,060 |
|
| $ | 93,917 |
|
| $ | 95,248 |
|
| $ | 92,393 |
|
| $ | 186,494 |
|
| $ | 185,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average total loans, net (2) |
| $ | 6,681,009 |
|
| $ | 6,674,665 |
|
| $ | 6,783,264 |
|
| $ | 6,740,579 |
|
| $ | 6,751,715 |
|
| $ | 6,677,855 |
|
| $ | 6,779,829 |
|
Core yield on total loans |
|
| 5.65 | % |
|
| 5.52 | % |
|
| 5.54 | % |
|
| 5.65 | % |
|
| 5.47 | % |
|
| 5.59 | % |
|
| 5.46 | % |
(1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.
(2) Excludes purchase accounting average balances for all periods presented.
(3) Excludes interest income from loans held for sale.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS'
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
(Dollars in thousands) |
| June 30, |
|
| March 31, |
|
| December 31, |
|
| September 30, |
|
| June 30, |
| |||||
Total Equity |
| $ | 706,377 |
|
| $ | 702,851 |
|
| $ | 724,539 |
|
| $ | 666,891 |
|
| $ | 665,322 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| - |
|
|
| - |
|
|
| (17,636 | ) |
|
| (17,636 | ) |
|
| (17,636 | ) |
Core deposit intangibles |
|
| (940 | ) |
|
| (1,029 | ) |
|
| (1,123 | ) |
|
| (1,220 | ) |
|
| (1,322 | ) |
Tangible Stockholders' Common Equity |
| $ | 705,437 |
|
| $ | 701,822 |
|
| $ | 705,780 |
|
| $ | 648,035 |
|
| $ | 646,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total Assets |
| $ | 8,776,524 |
|
| $ | 9,008,396 |
|
| $ | 9,038,972 |
|
| $ | 9,280,886 |
|
| $ | 9,097,240 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| - |
|
|
| - |
|
|
| (17,636 | ) |
|
| (17,636 | ) |
|
| (17,636 | ) |
Core deposit intangibles |
|
| (940 | ) |
|
| (1,029 | ) |
|
| (1,123 | ) |
|
| (1,220 | ) |
|
| (1,322 | ) |
Tangible Assets |
| $ | 8,775,584 |
|
| $ | 9,007,367 |
|
| $ | 9,020,213 |
|
| $ | 9,262,030 |
|
| $ | 9,078,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Tangible Stockholders' Common Equity to Tangible Assets |
|
| 8.04 | % |
|
| 7.79 | % |
|
| 7.82 | % |
|
| 7.00 | % |
|
| 7.12 | % |
SOURCE: Flushing Financial Corporation
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/flushing-financial-corporation-reports-gaap-eps-increase-of-128-and-1051889
