Flushing Financial Corporation
07/29/2024 | Press release | Distributed by Public on 07/29/2024 14:43
Results of Operations and Financial Condition Form 8 K
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John R. Buran, President and CEO Commentary |
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Flushing Financial Corporation Reports 2Q24 GAAP and Core EPS of $0.18; Net Interest Income Up QoQ |
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"Our long-term success is derived from executing against the four focus areas we outlined in 2023. For the quarter, GAAP and Core NIM declined 1 and 3 bps, respectively. As loan originations were less than paydowns, we purchased adjustable-rate securities, which led to net interest income increasing 0.9% QoQ. We anticipate the loan pipeline, which increased approximately 88% QoQ, will help to stabilize NIM, which is our first area of focus. Our second area of focus is credit quality, which remains quite strong. At the end of the quarter, we had NPAs to total assets of 61 bps, criticized and classified loans to total loans of 113 bps, and net recoveries of 1 bp. We remain confident that our strong underwriting will continue to drive toward low loss content. The third area of focus is preserving strong liquidity and capital. The Company has over $3 billion of unused lines of credit available as of June 30, 2024, and notwithstanding the normal flows of certain deposit portfolios, average deposits increased 4% YoY and 2% QoQ. Capital ratios remained strong with a leverage ratio of 8.18%. Our last area of focus is bending the expense curve. GAAP and core noninterest expense each increased 6% in the first half of the year compared to the same period a year ago. We are making investments in the business in new lending staff and branches to improve profitability over the long term and expect expense growth in 2024 will be more in line with our historical growth rate of mid-single digits. While progress will not always be in a straight line, we remain confident that adherence to these four areas of focus will favorably impact the long-term profitability of the Company." - John R. Buran, President and CEO |
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UNIONDALE, N.Y., July 29, 2024 - Growth in Average Deposits; Solid Credit Quality Metrics. Second quarter 2024 GAAP and Core EPS were both $0.18 compared to $0.29, and $0.26, respectively, a year ago. 2Q24 GAAP and Core NIM were 2.05% and 2.03%, down 1 bp and 3 bps QoQ, respectively. Absent episodic items1, NIM was 2.02% in 2Q24 compared to 2.01% in the prior quarter. Average total deposits increased 4.3% YoY and 1.6% QoQ, notwithstanding normal flows of certain portfolios. Strong Credit Quality; Capital Remains Solid. Credit quality metrics were at low levels with criticized and classified loans to gross loans of 113 bps, nonperforming assets to total assets of 61 bps, and net recoveries of 1 bp in 2Q24. Capital continues to be sound with TCE/TA2 of 7.12% at 2Q24 compared to 7.40% at 1Q24. |
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Key Financial Metrics3 |
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2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
1H24 |
1H23 |
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GAAP: |
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EPS |
$0.18 |
$0.12 |
$0.27 |
$0.26 |
$0.29 |
$0.30 |
$0.42 |
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ROAA (%) |
0.24 |
0.17 |
0.38 |
0.37 |
0.41 |
0.21 |
0.30 |
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ROAE (%) |
3.19 |
2.20 |
4.84 |
4.64 |
5.16 |
2.69 |
3.76 |
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NIM FTE4 (%) |
2.05 |
2.06 |
2.29 |
2.22 |
2.18 |
2.06 |
2.22 |
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Core: |
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EPS |
$0.18 |
$0.14 |
$0.25 |
$0.25 |
$0.26 |
$0.33 |
$0.32 |
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ROAA (%) |
0.25 |
0.20 |
0.35 |
0.36 |
0.37 |
0.22 |
0.23 |
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ROAE (%) |
3.27 |
2.58 |
4.51 |
4.49 |
4.70 |
2.92 |
2.89 |
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Core NIM FTE (%) |
2.03 |
2.06 |
2.31 |
2.13 |
2.17 |
2.05 |
2.21 |
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Credit Quality: |
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NPAs/Loans & OREO (%) |
0.82 |
0.68 |
0.67 |
0.56 |
0.58 |
0.82 |
0.58 |
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ACLs/Loans (%) |
0.61 |
0.60 |
0.58 |
0.57 |
0.57 |
0.61 |
0.57 |
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ACLs/NPLs (%) |
120.58 |
164.13 |
159.55 |
225.38 |
207.08 |
120.58 |
207.08 |
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NCOs/Avg Loans (%) |
(0.01) |
- |
- |
- |
0.09 |
- |
0.32 |
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Balance Sheet: |
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Avg Loans ($B) |
$6.7 |
$6.8 |
$6.9 |
$6.8 |
$6.8 |
$6.8 |
$6.9 |
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Avg Dep ($B) |
$7.2 |
$7.1 |
$6.9 |
$6.8 |
$6.9 |
$7.1 |
$6.9 |
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Book Value/Share |
$22.89 |
$23.04 |
$23.21 |
$23.06 |
$23.14 |
$22.89 |
$23.14 |
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Tangible BV/Share |
$22.24 |
$22.39 |
$22.54 |
$22.39 |
$22.47 |
$22.24 |
$22.47 |
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TCE/TA (%) |
7.12 |
7.40 |
7.64 |
7.56 |
7.70 |
7.12 |
7.70 |
Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
1 Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments. 2 Tangible Common Equity ("TCE")/Total Assets ("TA"). 3 See "Reconciliation of GAAP Earnings and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin." 4 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54001
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2Q24 Highlights |
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Net interest margin FTE decreased 13 bps YoY, but only 1 bp QoQ to 2.05%; Core net interest margin FTE decreased 14 bps YoY and 3 bps QoQ to 2.03%; absent episodic items1, NIM was 2.02% in 2Q24 compared to 2.15% in 2Q23 and 2.01% in 1Q24
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Average total deposits increased 4.3% YoY and 1.6% QoQ to $7.2 billion; Average noninterest bearing deposits were 11.4% of total average deposits compared to 12.3% in 2Q23 and 11.8% in 1Q24. Average CDs were $2.4 billion, up 19.4% YoY and 1.5% QoQ
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Period end net loans decreased 0.9% YoY and 0.7% QoQ to $6.7 billion; Loan closings were $126.0 million, down 20.7% YoY and 3.1% QoQ; The yields on closings increased 63 bps YoY and 57 bps QoQ to 7.77%; Back-to-back swap loan originations were $27.4 million compared to $15.3 million in 1Q24 and generated $0.5 million and $0.2 million of noninterest income, respectively; Loan pipeline decreased 21.1% YoY, but increased 88.4% QoQ to $327.7 million; Approximately 9% of the loan pipeline consists of back-to-back swap loans
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NPAs increased from a very low base of $39.6 million a year ago and $46.3 million in the prior quarter to $55.8 million equating to only 61 bps of assets compared to 47 bps in 2Q23 and 53 bps in 1Q24
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Year to date noninterest expense growth was 6.3%, while core noninterest expense growth was 5.7%; The Company remains on target to have core expense growth of mid-single digits for 2024
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Provision for credit losses was $0.8 million in 2Q24 compared to $1.4 million in 2Q23 and $0.6 million in 1Q24; Net charge-offs (recoveries) were $(92,000) in 2Q24 compared to $1.6 million in 2Q23 and $4,000 in 1Q24
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Tangible Common Equity to Tangible Assets was 7.12% at June 30, 2024, compared to 7.40% at March 31, 2024; Tangible book value per share was $22.24 compared to $22.47 a year ago
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Areas of Focus |
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Increase NIM and Reduce Volatility |
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GAAP and Core NIM decreased slightly by 1 bp and 3 bps QoQ, respectively, in 2Q24
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Absent episodic items1, NIM improved slightly to 2.02% in 2Q24 compared to 2.01% in 1Q24
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Remain largely interest rate neutral to a 100 bps change in rates
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Approximately 26% of the loan portfolio consists of floating rate loans (including hedges)
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Average noninterest bearing deposits decreased 1.4% QoQ and accounted for 11.4% of average total deposits
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Maintain Credit Discipline |
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Approximately 90% of the loan portfolio is collateralized by real estate with an average loan to value of less than 36%
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Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans
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Criticized and classified loans are 1.13% of gross loans
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Manhattan office buildings exposure is minimal at 0.5% of gross loans, none of which are nonperforming
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Preserve Strong Liquidity and Capital |
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Maintaining ample liquidity with $3.1billion of undrawn lines and resources as of June 30, 2024
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Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 32% of total deposits
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Total average deposits increased 4.3% YoY and 1.6% QoQ
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Tangible Common Equity to Tangible Assets was 7.12% at June 30, 2024, down 28 bps QoQ; Leverage ratio was 8.18% at June 30, 2024, compared to 8.32% at March 31, 2024
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Bend the Expense Curve |
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GAAP noninterest expense to average assets was 1.77% in 2Q24 compared to 1.66% in 2Q23 and 1.83% in 1Q24
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GAAP and Core noninterest expense growth was 11.2% and 9.9% YoY in 2Q24, respectively, and 6.3% and 5.7% year to date, respectively, as investments are made to improve long term profitability
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1 |
Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments, which totaled $0.7 million or 3 bps in 2Q24 compared to $0.5 million or 3 bps in 2Q23 and $1.0 million or 5 bps in 1Q24 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54002
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Income Statement Highlights |
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YoY |
QoQ |
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($000s, except EPS) |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Change |
Change |
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Net Interest Income |
$42,776 |
$42,397 |
$46,085 |
$44,427 |
$43,378 |
(1.4) |
% |
0.9 |
% |
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Provision for Credit Losses |
809 |
592 |
998 |
596 |
1,416 |
(42.9) |
36.7 |
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Noninterest Income |
4,216 |
3,084 |
7,402 |
3,309 |
5,020 |
(16.0) |
36.7 |
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Noninterest Expense |
39,047 |
39,892 |
40,735 |
36,388 |
35,110 |
11.2 |
(2.1) |
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Income Before Income Taxes |
7,136 |
4,997 |
11,754 |
10,752 |
11,872 |
(39.9) |
42.8 |
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Provision for Income Taxes |
1,814 |
1,313 |
3,655 |
2,917 |
3,186 |
(43.1) |
38.2 |
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Net Income |
$5,322 |
$3,684 |
$8,099 |
$7,835 |
$8,686 |
(38.7) |
44.5 |
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Diluted EPS |
$0.18 |
$0.12 |
$0.27 |
$0.26 |
$0.29 |
(37.9) |
50.0 |
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Avg. Diluted Shares (000s) |
29,789 |
29,742 |
29,650 |
29,703 |
30,090 |
(1.0) |
0.2 |
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Core Net Income1 |
$5,456 |
$4,312 |
$7,546 |
$7,571 |
$7,912 |
(31.0) |
26.5 |
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Core EPS1 |
$0.18 |
$0.14 |
$0.25 |
$0.25 |
$0.26 |
(30.8) |
28.6 |
1 See Reconciliation of GAAP Earnings and Core Earnings
Net interest income decreased YoY but increased QoQ.
| ● | Net Interest Margin FTE of 2.05% decreased 13 bps YoY and 1 bp QoQ |
| ● | Episodic items of prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $0.7 million (3 bps to NIM) in 2Q24, compared to $1.0 million (5 bps to NIM) in 1Q24, $3.0 million (15 bps to NIM) in 4Q23, $2.6 million (13 bps to NIM) in 3Q23, and $0.5 million (3 bps to NIM) in 2Q23 |
| ● | Excluding the items in the previous bullet, net interest margin was 2.02% compared to in 2Q24, 2.01% in 1Q24, 2.14% in 4Q23, 2.09% in 3Q23, and 2.15% in 2Q23 |
The provision for creditlosses decreased YoY but increased QoQ.
| ● | Net charge-offs (recoveries) were $(92,000) ((1) bp of average loans) in 2Q24 compared to $4,000 (less than 1 bp of average loans) in 1Q24, $60,000 in 4Q23 (less than 1 bp of average loans), $(42,000) in 3Q23 (less than (1) bp of average loans), and $1.6 million in 2Q23 (9 bps of average loans) |
Noninterest income decreased YoY but increased QoQ.
| ● | Back-to-back swap loan closings of $27.4 million in 2Q24 (compared to $11.5 million in 2Q23 and $15.3 million in 1Q24) generated $0.5 million of fee income (compared to $0.2 million of fee income in both 2Q23 and 1Q24) |
| ● | Net gains (losses) from fair value adjustments were $0.1 million in 2Q24 (less than $0.01 per share, net of tax), $(0.8) million in 1Q24 ($(0.02) per share, net of tax), $0.9 million in 4Q23 ($0.02 per share, net of tax), $(1.2) million in 3Q23 ($(0.03) per share, net of tax), and $0.3 million in 2Q23 ($0.01 per share, net of tax) |
| ● | Life insurance proceeds were $0.7 million in 4Q23 ($0.02 per share), $23,000 in 3Q23 (less than $0.01 per share), and $0.6 million ($0.02 per share) in 2Q23 |
| ● | Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $4.2 million in 2Q24, down 0.1% YoY, but up 6.2% QoQ |
Noninterest expense increased YoY but declined QoQ.
| ● | Seasonal compensation expense was $1.6 million in 1Q24 and did not repeat in 2Q24 |
| ● | Excluding the effects of immaterial adjustments, core operating expenses were $38.5 million in 2Q24, up 9.9% YoY, but down 3.4% QoQ; year over year increases primarily relate to business investments in people, and higher deposit insurance premiums and data processing costs |
| ● | GAAP noninterest expense to average assets was 1.77% in 2Q24, 1.83% in 1Q24, 1.90% in 4Q23, 1.71% in 3Q23, and 1.66% in 2Q23 |
Provision for income taxes decreased YoY but increased QoQ.
| ● | The effective tax rate was 25.4% in 2Q24, 26.3% in 1Q24, 31.1% in 4Q23, 27.1% in 3Q23, and 26.8% in 2Q23 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54003
| ● | The 4Q23 effective tax rate increased because of preferential tax items having a smaller impact due to higher pre-tax income than estimated in 3Q23 and 2Q23 |
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Balance Sheet, Credit Quality, and Capital Highlights |
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YoY |
QoQ |
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2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Change |
Change |
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Averages ($MM) |
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Loans |
$6,748 |
$6,804 |
$6,868 |
$6,813 |
$6,830 |
(1.2) |
% |
(0.8) |
% |
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Total Deposits |
7,196 |
7,081 |
6,884 |
6,819 |
6,900 |
4.3 |
1.6 |
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Credit Quality ($000s) |
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Nonperforming Loans |
$34,540 |
$24,829 |
$25,172 |
$17,405 |
$18,637 |
85.3 |
% |
39.1 |
% |
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Nonperforming Assets |
55,832 |
46,254 |
46,153 |
38,386 |
39,618 |
40.9 |
20.7 |
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Criticized and Classified Loans |
76,485 |
59,021 |
76,719 |
74,169 |
48,675 |
57.1 |
29.6 |
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Criticized and Classified Assets |
97,777 |
80,446 |
97,700 |
95,150 |
69,656 |
40.4 |
21.5 |
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Allowance for Credit Losses/Loans (%) |
0.61 |
0.60 |
0.58 |
0.57 |
0.57 |
4 |
bps |
1 |
bp |
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Capital |
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Book Value/Share |
$22.89 |
$23.04 |
$23.21 |
$23.06 |
$23.14 |
(1.1) |
% |
(0.7) |
% |
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Tangible Book Value/Share |
22.24 |
22.39 |
22.54 |
22.39 |
22.47 |
(1.0) |
(0.7) |
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Tang. Common Equity/Tang. Assets (%) |
7.12 |
7.40 |
7.64 |
7.56 |
7.70 |
(58) |
bps |
(28) |
bps |
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Leverage Ratio (%) |
8.18 |
8.32 |
8.47 |
8.51 |
8.54 |
(36) |
(14) |
Average loans decreased slightly YoY and QoQ.
| ● | Period end net loans totaled $6.7 billion, down 0.9% YoY and 0.7% QoQ |
| ● | Total loan closings were $126.0 million in 2Q24, $130.0 million in 1Q24, $244.3 million in 4Q23, $241.5 million in 3Q23, and $158.8 million in 2Q23; the loan pipeline was $327.7 million at June 30, 2024, down 21.1% YoY, but up 88.4% QoQ |
| ● | The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of <36% |
| ● | Manhattan office buildings exposure is minimal at 0.5% of gross loans with all loans performing |
Average total deposits increased YoY and QoQ.
| ● | Average noninterest bearing deposits decreased 3.2% YoY and 1.4% QoQ and comprised 11.4% of average total deposits in 2Q24 compared to 12.3% a year ago |
| ● | Average CDs totaled $2.4 billion, up 19.4% YoY and 1.5% QoQ; approximately $587.5 million of retail CDs are due to mature at an average rate of 4.89% in 3Q24 |
Credit Quality: Nonperforming loans increased YoY and QoQ.
| ● | Nonperforming loans were 51 bps of loans in 2Q24 compared to 27 bps in 2Q23 and 36 bps in 1Q24; the increase from 1Q24 in NPLs was primarily driven by 4 credits totaling $9.1 million and we expect minimal, if any losses |
| ● | Criticized and classified loans were 113 bps of gross loans in 2Q24 compared to 87 bps of gross loans at 1Q24, 111 bps at 4Q23, 108 bps at 3Q23, and 71 bps at 2Q23 |
| ● | Allowance for credit losses were 120.6% of nonperforming loans at 2Q24 compared to 207.1% at 2Q23 and 164.1% at 1Q24 |
Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both decreased 1.1% and 1.0% YoY to $22.89 and $22.24, respectively.
| ● | The Company paid a dividend of $0.22 per share in 2Q24; 807,964shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit |
| ● | Tangible common equity to tangible assets was 7.12% at June 30, 2024, compared to 7.70% at June 30, 2023, and 7.40% at March 31, 2024 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54004
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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 Tuesday, July 30, 2024, at 9:00 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=rhmdjtQw |
| ● | Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658 |
| ● | Replay Access Code: 8422874 |
| ● | The conference call will be simultaneously webcast and archived |
Third Quarter 2024 Earnings Release Date:
The Company plans to release Third Quarter 2024 financial results after the market close on October 24, 2024, followed by a conference call at 11:00 AM (ET) on October 25, 2024.
A detailed announcement will be issued prior to the third quarter's close confirming the date and the time of the earning 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, 2023 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.
#FF- Statistical Tables Follow -
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54005
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
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At or for the three months ended |
At or for the six months ended |
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June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
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(Dollars in thousands, except per share data) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
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Performance Ratios (1) |
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Return on average assets |
0.24 |
% |
0.17 |
% |
0.38 |
% |
0.37 |
% |
0.41 |
% |
0.21 |
% |
0.30 |
% |
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Return on average equity |
3.19 |
2.20 |
4.84 |
4.64 |
5.16 |
2.69 |
3.76 |
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Yield on average interest-earning assets (2) |
5.43 |
5.32 |
5.39 |
5.19 |
4.84 |
5.37 |
4.72 |
|||||||||||||||||||||
|
Cost of average interest-bearing liabilities |
3.95 |
3.83 |
3.68 |
3.52 |
3.15 |
3.89 |
2.97 |
|||||||||||||||||||||
|
Cost of funds |
3.54 |
3.42 |
3.26 |
3.13 |
2.80 |
3.48 |
2.63 |
|||||||||||||||||||||
|
Net interest rate spread during period (2) |
1.48 |
1.49 |
1.71 |
1.67 |
1.69 |
1.48 |
1.75 |
|||||||||||||||||||||
|
Net interest margin (2) |
2.05 |
2.06 |
2.29 |
2.22 |
2.18 |
2.06 |
2.22 |
|||||||||||||||||||||
|
Noninterest expense to average assets |
1.77 |
1.83 |
1.90 |
1.71 |
1.66 |
1.80 |
1.75 |
|||||||||||||||||||||
|
Efficiency ratio (3) |
82.57 |
86.07 |
76.69 |
76.76 |
73.82 |
84.31 |
76.72 |
|||||||||||||||||||||
|
Average interest-earning assets to averageinterest-bearingliabilities |
1.17 |
X |
1.17 |
X |
1.19 |
X |
1.18 |
X |
1.18 |
X |
1.17 |
X |
1.19 |
X |
||||||||||||||
|
Average Balances |
||||||||||||||||||||||||||||
|
Total loans, net |
$ |
6,748,140 |
$ |
6,804,117 |
$ |
6,867,927 |
$ |
6,813,019 |
$ |
6,829,648 |
$ |
6,776,128 |
$ |
6,850,305 |
||||||||||||||
|
Total interest-earning assets |
8,354,994 |
8,235,160 |
8,076,991 |
8,023,237 |
7,991,756 |
8,295,076 |
7,997,037 |
|||||||||||||||||||||
|
Total assets |
8,830,665 |
8,707,505 |
8,569,002 |
8,505,346 |
8,462,442 |
8,769,085 |
8,465,363 |
|||||||||||||||||||||
|
Total deposits |
7,195,940 |
7,081,498 |
6,884,037 |
6,819,397 |
6,899,617 |
7,138,720 |
6,855,299 |
|||||||||||||||||||||
|
Total interest-bearing liabilities |
7,140,068 |
7,014,927 |
6,813,909 |
6,771,860 |
6,756,859 |
7,077,498 |
6,730,357 |
|||||||||||||||||||||
|
Stockholders' equity |
667,557 |
669,185 |
669,819 |
675,041 |
672,835 |
668,371 |
677,917 |
|||||||||||||||||||||
|
Per Share Data |
||||||||||||||||||||||||||||
|
Book value per common share (4) |
$ |
22.89 |
$ |
23.04 |
$ |
23.21 |
$ |
23.06 |
$ |
23.14 |
$ |
22.89 |
$ |
23.14 |
||||||||||||||
|
Tangible book value per common share (5) |
$ |
22.24 |
$ |
22.39 |
$ |
22.54 |
$ |
22.39 |
$ |
22.47 |
$ |
22.24 |
$ |
22.47 |
||||||||||||||
|
Stockholders' Equity |
||||||||||||||||||||||||||||
|
Stockholders' equity |
$ |
665,322 |
$ |
669,827 |
$ |
669,837 |
$ |
666,521 |
$ |
670,247 |
$ |
665,322 |
$ |
670,247 |
||||||||||||||
|
Tangible stockholders' equity |
646,364 |
650,763 |
650,664 |
647,234 |
650,842 |
646,364 |
650,842 |
|||||||||||||||||||||
|
Consolidated Regulatory Capital Ratios |
||||||||||||||||||||||||||||
|
Tier 1 capital |
$ |
733,308 |
$ |
734,192 |
$ |
737,732 |
$ |
736,744 |
$ |
734,754 |
$ |
733,308 |
$ |
734,754 |
||||||||||||||
|
Common equity Tier 1 capital |
686,630 |
687,458 |
691,754 |
690,294 |
688,820 |
686,630 |
688,820 |
|||||||||||||||||||||
|
Total risk-based capital |
965,819 |
965,796 |
967,627 |
965,532 |
962,784 |
965,819 |
962,784 |
|||||||||||||||||||||
|
Risk Weighted Assets |
6,718,568 |
6,664,496 |
6,750,301 |
6,804,478 |
6,650,222 |
6,718,568 |
6,650,222 |
|||||||||||||||||||||
|
Tier1leveragecapital (wellcapitalized = 5%) |
8.18 |
% |
8.32 |
% |
8.47 |
% |
8.51 |
% |
8.54 |
% |
8.18 |
% |
8.54 |
% |
||||||||||||||
|
CommonequityTier1risk-basedcapital (wellcapitalized = 6.5%) |
10.22 |
10.32 |
10.25 |
10.14 |
10.36 |
10.22 |
10.36 |
|||||||||||||||||||||
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
10.91 |
11.02 |
10.93 |
10.83 |
11.05 |
10.91 |
11.05 |
|||||||||||||||||||||
|
Total risk-based capital (well capitalized = 10.0%) |
14.38 |
14.49 |
14.33 |
14.19 |
14.48 |
14.38 |
14.48 |
|||||||||||||||||||||
|
Capital Ratios |
||||||||||||||||||||||||||||
|
Average equity to average assets |
7.56 |
% |
7.69 |
% |
7.82 |
% |
7.94 |
% |
7.95 |
% |
7.62 |
% |
8.01 |
% |
||||||||||||||
|
Equity to total assets |
7.31 |
7.61 |
7.85 |
7.77 |
7.91 |
7.31 |
7.91 |
|||||||||||||||||||||
|
Tangible common equity to tangible assets (6) |
7.12 |
7.40 |
7.64 |
7.56 |
7.70 |
7.12 |
7.70 |
|||||||||||||||||||||
|
Asset Quality |
||||||||||||||||||||||||||||
|
Nonaccrual loans |
$ |
34,540 |
$ |
24,829 |
$ |
23,709 |
$ |
17,405 |
$ |
18,637 |
$ |
34,540 |
$ |
18,637 |
||||||||||||||
|
Nonperforming loans |
34,540 |
24,829 |
25,172 |
17,405 |
18,637 |
34,540 |
18,637 |
|||||||||||||||||||||
|
Nonperforming assets |
55,832 |
46,254 |
46,153 |
38,386 |
39,618 |
55,832 |
39,618 |
|||||||||||||||||||||
|
Net charge-offs (recoveries) |
(92) |
4 |
60 |
(42) |
1,560 |
(88) |
10,794 |
|||||||||||||||||||||
|
Asset Quality Ratios |
||||||||||||||||||||||||||||
|
Nonperforming loans to gross loans |
0.51 |
% |
0.36 |
% |
0.36 |
% |
0.25 |
% |
0.27 |
% |
0.51 |
% |
0.27 |
% |
||||||||||||||
|
Nonperforming assets to total assets |
0.61 |
0.53 |
0.54 |
0.45 |
0.47 |
0.61 |
0.47 |
|||||||||||||||||||||
|
Allowance for credit losses to gross loans |
0.61 |
0.60 |
0.58 |
0.57 |
0.57 |
0.61 |
0.57 |
|||||||||||||||||||||
|
Allowance for credit losses to nonperforming assets |
74.60 |
88.10 |
87.02 |
102.19 |
97.41 |
74.60 |
97.41 |
|||||||||||||||||||||
|
Allowance for credit losses to nonperforming loans |
120.58 |
164.13 |
159.55 |
225.38 |
207.08 |
120.58 |
207.08 |
|||||||||||||||||||||
|
Net charge-offs (recoveries) to average loans |
(0.01) |
- |
- |
- |
0.09 |
- |
0.32 |
|||||||||||||||||||||
|
Full-service customer facilities |
27 |
27 |
27 |
27 |
26 |
27 |
26 |
(footnotes on next page)
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54006
|
(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". |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54007
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
For the three months ended |
For the six months ended |
|||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
|
(In thousands, except per share data) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||
|
Interest and Dividend Income |
||||||||||||||||||||||
|
Interest and fees on loans |
$ |
92,728 |
$ |
92,959 |
$ |
95,616 |
$ |
91,466 |
$ |
85,377 |
$ |
185,687 |
$ |
168,266 |
||||||||
|
Interest and dividends on securities: |
||||||||||||||||||||||
|
Interest |
18,209 |
12,541 |
10,803 |
10,383 |
9,172 |
30,750 |
16,412 |
|||||||||||||||
|
Dividends |
33 |
33 |
34 |
33 |
30 |
66 |
59 |
|||||||||||||||
|
Other interest income |
2,260 |
3,966 |
2,310 |
2,154 |
1,982 |
6,226 |
3,941 |
|||||||||||||||
|
Total interest and dividend income |
113,230 |
109,499 |
108,763 |
104,036 |
96,561 |
222,729 |
188,678 |
|||||||||||||||
|
Interest Expense |
||||||||||||||||||||||
|
Deposits |
60,893 |
57,865 |
53,284 |
50,066 |
46,249 |
118,758 |
85,305 |
|||||||||||||||
|
Other interest expense |
9,561 |
9,237 |
9,394 |
9,543 |
6,934 |
18,798 |
14,733 |
|||||||||||||||
|
Total interest expense |
70,454 |
67,102 |
62,678 |
59,609 |
53,183 |
137,556 |
100,038 |
|||||||||||||||
|
Net Interest Income |
42,776 |
42,397 |
46,085 |
44,427 |
43,378 |
85,173 |
88,640 |
|||||||||||||||
|
Provision for credit losses |
809 |
592 |
998 |
596 |
1,416 |
1,401 |
8,924 |
|||||||||||||||
|
NetInterest Income After Provision for Credit Losses |
41,967 |
41,805 |
45,087 |
43,831 |
41,962 |
83,772 |
79,716 |
|||||||||||||||
|
Noninterest Income |
||||||||||||||||||||||
|
Banking services fee income |
1,583 |
1,394 |
2,824 |
2,636 |
1,780 |
2,977 |
3,191 |
|||||||||||||||
|
Net gain on sale of loans |
26 |
110 |
- |
- |
54 |
136 |
108 |
|||||||||||||||
|
Net gain (loss) from fair value adjustments |
57 |
(834) |
906 |
(1,246) |
294 |
(777) |
2,913 |
|||||||||||||||
|
Federal Home Loan Bank of New York stock dividends |
669 |
743 |
658 |
624 |
534 |
1,412 |
1,231 |
|||||||||||||||
|
Life insurance proceeds |
- |
- |
697 |
23 |
561 |
- |
561 |
|||||||||||||||
|
Bank owned life insurance |
1,223 |
1,200 |
1,173 |
1,157 |
1,134 |
2,423 |
2,243 |
|||||||||||||||
|
Other income |
658 |
471 |
1,144 |
115 |
663 |
1,129 |
1,630 |
|||||||||||||||
|
Total noninterest income |
4,216 |
3,084 |
7,402 |
3,309 |
5,020 |
7,300 |
11,877 |
|||||||||||||||
|
Noninterest Expense |
||||||||||||||||||||||
|
Salaries and employee benefits |
21,723 |
22,113 |
23,359 |
20,346 |
19,690 |
43,836 |
42,252 |
|||||||||||||||
|
Occupancy and equipment |
3,713 |
3,779 |
3,698 |
3,371 |
3,534 |
7,492 |
7,327 |
|||||||||||||||
|
Professional services |
2,786 |
2,792 |
2,523 |
2,494 |
2,291 |
5,578 |
4,552 |
|||||||||||||||
|
FDIC deposit insurance |
1,322 |
1,652 |
1,162 |
912 |
943 |
2,974 |
1,920 |
|||||||||||||||
|
Data processing |
1,785 |
1,727 |
1,646 |
1,422 |
1,473 |
3,512 |
2,908 |
|||||||||||||||
|
Depreciation and amortization |
1,425 |
1,457 |
1,491 |
1,482 |
1,482 |
2,882 |
2,992 |
|||||||||||||||
|
Other real estate owned/foreclosure expense |
125 |
145 |
105 |
185 |
150 |
270 |
315 |
|||||||||||||||
|
Other operating expenses |
6,168 |
6,227 |
6,751 |
6,176 |
5,547 |
12,395 |
12,000 |
|||||||||||||||
|
Total noninterest expense |
39,047 |
39,892 |
40,735 |
36,388 |
35,110 |
78,939 |
74,266 |
|||||||||||||||
|
Income Before Provision for Income Taxes |
7,136 |
4,997 |
11,754 |
10,752 |
11,872 |
12,133 |
17,327 |
|||||||||||||||
|
Provision for income taxes |
1,814 |
1,313 |
3,655 |
2,917 |
3,186 |
3,127 |
4,597 |
|||||||||||||||
|
Net Income |
$ |
5,322 |
$ |
3,684 |
$ |
8,099 |
$ |
7,835 |
$ |
8,686 |
$ |
9,006 |
$ |
12,730 |
||||||||
|
Basic earnings per common share |
$ |
0.18 |
$ |
0.12 |
$ |
0.27 |
$ |
0.26 |
$ |
0.29 |
$ |
0.30 |
$ |
0.42 |
||||||||
|
Diluted earnings per common share |
$ |
0.18 |
$ |
0.12 |
$ |
0.27 |
$ |
0.26 |
$ |
0.29 |
$ |
0.30 |
$ |
0.42 |
||||||||
|
Dividends per common share |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.22 |
$ |
0.44 |
$ |
0.44 |
||||||||
|
Basic average shares |
29,789 |
29,742 |
29,650 |
29,703 |
30,090 |
29,766 |
30,177 |
|||||||||||||||
|
Diluted average shares |
29,789 |
29,742 |
29,650 |
29,703 |
30,090 |
29,766 |
30,177 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54008
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
||||||||||
|
ASSETS |
|||||||||||||||
|
Cash and due from banks |
$ |
156,913 |
$ |
210,723 |
$ |
172,157 |
$ |
200,926 |
$ |
160,053 |
|||||
|
Securities held-to-maturity: |
|||||||||||||||
|
Mortgage-backed securities |
7,846 |
7,850 |
7,855 |
7,860 |
7,865 |
||||||||||
|
Other securities, net |
64,166 |
64,612 |
65,068 |
65,271 |
65,469 |
||||||||||
|
Securities available for sale: |
|||||||||||||||
|
Mortgage-backed securities |
869,494 |
509,527 |
354,344 |
337,879 |
365,911 |
||||||||||
|
Other securities |
679,117 |
667,156 |
520,409 |
505,784 |
503,645 |
||||||||||
|
Loans |
6,777,026 |
6,821,943 |
6,906,950 |
6,896,074 |
6,832,425 |
||||||||||
|
Allowance for credit losses |
(41,648) |
(40,752) |
(40,161) |
(39,228) |
(38,593) |
||||||||||
|
Net loans |
6,735,378 |
6,781,191 |
6,866,789 |
6,856,846 |
6,793,832 |
||||||||||
|
Interest and dividends receivable |
62,752 |
61,449 |
59,018 |
55,660 |
52,911 |
||||||||||
|
Bank premises and equipment, net |
19,426 |
20,102 |
21,273 |
21,302 |
22,182 |
||||||||||
|
Federal Home Loan Bank of New York stock |
46,331 |
24,845 |
31,066 |
43,821 |
36,168 |
||||||||||
|
Bank owned life insurance |
215,940 |
214,718 |
213,518 |
214,321 |
213,164 |
||||||||||
|
Goodwill |
17,636 |
17,636 |
17,636 |
17,636 |
17,636 |
||||||||||
|
Core deposit intangibles |
1,322 |
1,428 |
1,537 |
1,651 |
1,769 |
||||||||||
|
Right of use asset |
46,636 |
37,631 |
39,557 |
41,404 |
41,526 |
||||||||||
|
Other assets |
174,283 |
188,457 |
167,009 |
209,014 |
192,721 |
||||||||||
|
Total assets |
$ |
9,097,240 |
$ |
8,807,325 |
$ |
8,537,236 |
$ |
8,579,375 |
$ |
8,474,852 |
|||||
|
LIABILITIES |
|||||||||||||||
|
Total deposits |
$ |
6,906,863 |
$ |
7,253,207 |
$ |
6,815,261 |
$ |
6,681,509 |
$ |
6,723,690 |
|||||
|
Borrowed funds |
1,316,565 |
671,474 |
841,281 |
1,001,010 |
857,400 |
||||||||||
|
Operating lease liability |
47,485 |
38,674 |
40,822 |
43,067 |
44,402 |
||||||||||
|
Other liabilities |
161,005 |
174,143 |
170,035 |
187,268 |
179,113 |
||||||||||
|
Total liabilities |
8,431,918 |
8,137,498 |
7,867,399 |
7,912,854 |
7,804,605 |
||||||||||
|
STOCKHOLDERS' EQUITY |
|||||||||||||||
|
Preferred stock (5,000,000 shares authorized; none issued) |
- |
- |
- |
- |
- |
||||||||||
|
Common stock ($0.01 par value; 100,000,000 shares authorized) |
341 |
341 |
341 |
341 |
341 |
||||||||||
|
Additional paid-in capital |
260,585 |
260,413 |
264,534 |
264,486 |
263,744 |
||||||||||
|
Treasury stock |
(101,633) |
(101,641) |
(106,070) |
(105,433) |
(104,574) |
||||||||||
|
Retained earnings |
545,345 |
546,530 |
549,683 |
548,058 |
546,755 |
||||||||||
|
Accumulated other comprehensive loss, net of taxes |
(39,316) |
(35,816) |
(38,651) |
(40,931) |
(36,019) |
||||||||||
|
Total stockholders' equity |
665,322 |
669,827 |
669,837 |
666,521 |
670,247 |
||||||||||
|
Total liabilities and stockholders' equity |
$ |
9,097,240 |
$ |
8,807,325 |
$ |
8,537,236 |
$ |
8,579,375 |
$ |
8,474,852 |
|||||
|
(In thousands) |
|||||||||||||||
|
Issued shares |
34,088 |
34,088 |
34,088 |
34,088 |
34,088 |
||||||||||
|
Outstanding shares |
29,069 |
29,069 |
28,866 |
28,905 |
28,961 |
||||||||||
|
Treasury shares |
5,019 |
5,019 |
5,222 |
5,183 |
5,127 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54009
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)
|
For the three months ended |
For the six months ended |
||||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||
|
(In thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||||||
|
Interest-earning Assets: |
|||||||||||||||||||||||
|
Mortgage loans, net |
$ |
5,338,614 |
$ |
5,353,606 |
$ |
5,356,112 |
$ |
5,314,215 |
$ |
5,308,567 |
$ |
5,346,110 |
$ |
5,320,852 |
|||||||||
|
Commercial Business loans, net |
1,409,526 |
1,450,511 |
1,511,815 |
1,498,804 |
1,521,081 |
1,430,018 |
1,529,453 |
||||||||||||||||
|
Total loans, net |
6,748,140 |
6,804,117 |
6,867,927 |
6,813,019 |
6,829,648 |
6,776,128 |
6,850,305 |
||||||||||||||||
|
Taxable securities: |
|||||||||||||||||||||||
|
Mortgage-backed securities |
691,802 |
462,934 |
426,612 |
436,181 |
448,620 |
577,368 |
453,240 |
||||||||||||||||
|
Other securities, net |
663,975 |
590,204 |
527,316 |
528,091 |
471,600 |
627,089 |
441,827 |
||||||||||||||||
|
Total taxable securities |
1,355,777 |
1,053,138 |
953,928 |
964,272 |
920,220 |
1,204,457 |
895,067 |
||||||||||||||||
|
Tax-exempt securities: |
|||||||||||||||||||||||
|
Other securities |
65,451 |
65,939 |
66,242 |
66,438 |
66,632 |
65,695 |
66,730 |
||||||||||||||||
|
Total tax-exempt securities |
65,451 |
65,939 |
66,242 |
66,438 |
66,632 |
65,695 |
66,730 |
||||||||||||||||
|
Interest-earning deposits and federal funds sold |
185,626 |
311,966 |
188,894 |
179,508 |
175,256 |
248,796 |
184,935 |
||||||||||||||||
|
Total interest-earning assets |
8,354,994 |
8,235,160 |
8,076,991 |
8,023,237 |
7,991,756 |
8,295,076 |
7,997,037 |
||||||||||||||||
|
Other assets |
475,671 |
472,345 |
492,011 |
482,109 |
470,686 |
474,009 |
468,326 |
||||||||||||||||
|
Total assets |
$ |
8,830,665 |
$ |
8,707,505 |
$ |
8,569,002 |
$ |
8,505,346 |
$ |
8,462,442 |
$ |
8,769,085 |
$ |
8,465,363 |
|||||||||
|
Interest-bearing Liabilities: |
|||||||||||||||||||||||
|
Deposits: |
|||||||||||||||||||||||
|
Savings accounts |
$ |
103,335 |
$ |
106,212 |
$ |
110,316 |
$ |
115,437 |
$ |
124,041 |
$ |
104,774 |
$ |
129,463 |
|||||||||
|
NOW accounts |
2,017,085 |
1,935,250 |
1,848,285 |
1,907,781 |
2,026,950 |
1,976,168 |
1,998,909 |
||||||||||||||||
|
Money market accounts |
1,714,085 |
1,725,714 |
1,625,453 |
1,584,308 |
1,754,574 |
1,719,899 |
1,905,709 |
||||||||||||||||
|
Certificate of deposit accounts |
2,443,047 |
2,406,283 |
2,340,115 |
2,290,669 |
2,046,960 |
2,424,665 |
1,864,254 |
||||||||||||||||
|
Total due to depositors |
6,277,552 |
6,173,459 |
5,924,169 |
5,898,195 |
5,952,525 |
6,225,506 |
5,898,335 |
||||||||||||||||
|
Mortgagors' escrow accounts |
95,532 |
73,822 |
86,592 |
69,525 |
97,410 |
84,677 |
84,021 |
||||||||||||||||
|
Total interest-bearing deposits |
6,373,084 |
6,247,281 |
6,010,761 |
5,967,720 |
6,049,935 |
6,310,183 |
5,982,356 |
||||||||||||||||
|
Borrowings |
766,984 |
767,646 |
803,148 |
804,140 |
706,924 |
767,315 |
748,001 |
||||||||||||||||
|
Total interest-bearing liabilities |
7,140,068 |
7,014,927 |
6,813,909 |
6,771,860 |
6,756,859 |
7,077,498 |
6,730,357 |
||||||||||||||||
|
Noninterest-bearing demand deposits |
822,856 |
834,217 |
873,276 |
851,677 |
849,682 |
828,537 |
872,943 |
||||||||||||||||
|
Other liabilities |
200,184 |
189,176 |
211,998 |
206,768 |
183,066 |
194,679 |
184,146 |
||||||||||||||||
|
Total liabilities |
8,163,108 |
8,038,320 |
7,899,183 |
7,830,305 |
7,789,607 |
8,100,714 |
7,787,446 |
||||||||||||||||
|
Equity |
667,557 |
669,185 |
669,819 |
675,041 |
672,835 |
668,371 |
677,917 |
||||||||||||||||
|
Total liabilities and equity |
$ |
8,830,665 |
$ |
8,707,505 |
$ |
8,569,002 |
$ |
8,505,346 |
$ |
8,462,442 |
$ |
8,769,085 |
$ |
8,465,363 |
|||||||||
|
Net interest-earning assets |
$ |
1,214,926 |
$ |
1,220,233 |
$ |
1,263,082 |
$ |
1,251,377 |
$ |
1,234,897 |
$ |
1,217,578 |
$ |
1,266,680 |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540010
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST INCOME AND NET INTEREST MARGIN
(Unaudited)
|
For the three months ended |
For the six months ended |
||||||||||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||||||||||||
|
Interest Income: |
|||||||||||||||||||||||||||||
|
Mortgage loans, net |
$ |
71,968 |
$ |
71,572 |
$ |
72,505 |
$ |
68,931 |
$ |
63,688 |
$ |
143,540 |
$ |
125,742 |
|||||||||||||||
|
Commercial Business loans, net |
20,760 |
21,387 |
23,111 |
22,535 |
21,689 |
42,147 |
42,524 |
||||||||||||||||||||||
|
Total loans, net |
92,728 |
92,959 |
95,616 |
91,466 |
85,377 |
185,687 |
168,266 |
||||||||||||||||||||||
|
Taxable securities: |
|||||||||||||||||||||||||||||
|
Mortgage-backed securities |
7,462 |
3,696 |
3,217 |
3,031 |
2,976 |
11,158 |
5,257 |
||||||||||||||||||||||
|
Other securities |
10,408 |
8,504 |
7,239 |
7,003 |
5,847 |
18,912 |
10,458 |
||||||||||||||||||||||
|
Total taxable securities |
17,870 |
12,200 |
10,456 |
10,034 |
8,823 |
30,070 |
15,715 |
||||||||||||||||||||||
|
Tax-exempt securities: |
|||||||||||||||||||||||||||||
|
Other securities |
470 |
474 |
482 |
484 |
480 |
944 |
957 |
||||||||||||||||||||||
|
Total tax-exempt securities |
470 |
474 |
482 |
484 |
480 |
944 |
957 |
||||||||||||||||||||||
|
Interest-earning deposits and federal funds sold |
2,260 |
3,966 |
2,310 |
2,154 |
1,982 |
6,226 |
3,941 |
||||||||||||||||||||||
|
Total interest-earning assets |
113,328 |
109,599 |
108,864 |
104,138 |
96,662 |
222,927 |
188,879 |
||||||||||||||||||||||
|
Interest Expense: |
|||||||||||||||||||||||||||||
|
Deposits: |
|||||||||||||||||||||||||||||
|
Savings accounts |
$ |
115 |
$ |
122 |
$ |
124 |
$ |
130 |
$ |
140 |
$ |
237 |
$ |
266 |
|||||||||||||||
|
NOW accounts |
20,007 |
18,491 |
17,411 |
16,843 |
16,152 |
38,498 |
29,937 |
||||||||||||||||||||||
|
Money market accounts |
17,326 |
17,272 |
15,785 |
14,386 |
14,625 |
34,598 |
28,727 |
||||||||||||||||||||||
|
Certificate of deposit accounts |
23,383 |
21,918 |
19,917 |
18,639 |
15,281 |
45,301 |
26,288 |
||||||||||||||||||||||
|
Total due to depositors |
60,831 |
57,803 |
53,237 |
49,998 |
46,198 |
118,634 |
85,218 |
||||||||||||||||||||||
|
Mortgagors' escrow accounts |
62 |
62 |
47 |
68 |
51 |
124 |
87 |
||||||||||||||||||||||
|
Total interest-bearing deposits |
60,893 |
57,865 |
53,284 |
50,066 |
46,249 |
118,758 |
85,305 |
||||||||||||||||||||||
|
Borrowings |
9,561 |
9,237 |
9,394 |
9,543 |
6,934 |
18,798 |
14,733 |
||||||||||||||||||||||
|
Total interest-bearing liabilities |
70,454 |
67,102 |
62,678 |
59,609 |
53,183 |
137,556 |
100,038 |
||||||||||||||||||||||
|
Net interest income- tax equivalent |
$ |
42,874 |
$ |
42,497 |
$ |
46,186 |
$ |
44,529 |
$ |
43,479 |
$ |
85,371 |
$ |
88,841 |
|||||||||||||||
|
Included in net interest income above: |
|||||||||||||||||||||||||||||
|
Prepaymentpenalty income, net reversals and recovered interest from nonaccrual loans, and customer swap terminations fees |
$ |
369 |
$ |
928 |
$ |
3,416 |
$ |
857 |
$ |
315 |
$ |
1,297 |
$ |
995 |
|||||||||||||||
|
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income |
177 |
(187) |
(872) |
1,348 |
(205) |
(10) |
(105) |
||||||||||||||||||||||
|
Purchase accounting adjustments |
182 |
271 |
461 |
347 |
340 |
453 |
646 |
||||||||||||||||||||||
|
Interest-earning Assets Yields: |
|||||||||||||||||||||||||||||
|
Mortgage loans, net |
5.39 |
% |
5.35 |
% |
5.41 |
% |
5.19 |
% |
4.80 |
% |
5.37 |
% |
4.73 |
% |
|||||||||||||||
|
Commercial Business loans, net |
5.89 |
5.90 |
6.11 |
6.01 |
5.70 |
5.89 |
5.56 |
||||||||||||||||||||||
|
Total loans, net |
5.50 |
5.46 |
5.57 |
5.37 |
5.00 |
5.48 |
4.91 |
||||||||||||||||||||||
|
Taxable securities: |
|||||||||||||||||||||||||||||
|
Mortgage-backed securities |
4.31 |
3.19 |
3.02 |
2.78 |
2.65 |
3.87 |
2.32 |
||||||||||||||||||||||
|
Other securities |
6.27 |
5.76 |
5.49 |
5.30 |
4.96 |
6.03 |
4.73 |
||||||||||||||||||||||
|
Total taxable securities |
5.27 |
4.63 |
4.38 |
4.16 |
3.84 |
4.99 |
3.51 |
||||||||||||||||||||||
|
Tax-exempt securities: (1) |
|||||||||||||||||||||||||||||
|
Other securities |
2.87 |
2.88 |
2.91 |
2.91 |
2.88 |
2.87 |
2.87 |
||||||||||||||||||||||
|
Total tax-exempt securities |
2.87 |
2.88 |
2.91 |
2.91 |
2.88 |
2.87 |
2.87 |
||||||||||||||||||||||
|
Interest-earning deposits and federal funds sold |
4.87 |
5.09 |
4.89 |
4.80 |
4.52 |
5.00 |
4.26 |
||||||||||||||||||||||
|
Total interest-earning assets (1) |
5.43 |
% |
5.32 |
% |
5.39 |
% |
5.19 |
% |
4.84 |
% |
5.37 |
% |
4.72 |
% |
|||||||||||||||
|
Interest-bearing Liabilities Yields: |
|||||||||||||||||||||||||||||
|
Deposits: |
|||||||||||||||||||||||||||||
|
Savings accounts |
0.45 |
% |
0.46 |
% |
0.45 |
% |
0.45 |
% |
0.45 |
% |
0.45 |
% |
0.41 |
% |
|||||||||||||||
|
NOW accounts |
3.97 |
3.82 |
3.77 |
3.53 |
3.19 |
3.90 |
3.00 |
||||||||||||||||||||||
|
Money market accounts |
4.04 |
4.00 |
3.88 |
3.63 |
3.33 |
4.02 |
3.01 |
||||||||||||||||||||||
|
Certificate of deposit accounts |
3.83 |
3.64 |
3.40 |
3.25 |
2.99 |
3.74 |
2.82 |
||||||||||||||||||||||
|
Total due to depositors |
3.88 |
3.75 |
3.59 |
3.39 |
3.10 |
3.81 |
2.89 |
||||||||||||||||||||||
|
Mortgagors' escrow accounts |
0.26 |
0.34 |
0.22 |
0.39 |
0.21 |
0.29 |
0.21 |
||||||||||||||||||||||
|
Total interest-bearing deposits |
3.82 |
3.70 |
3.55 |
3.36 |
3.06 |
3.76 |
2.85 |
||||||||||||||||||||||
|
Borrowings |
4.99 |
4.81 |
4.68 |
4.75 |
3.92 |
4.90 |
3.94 |
||||||||||||||||||||||
|
Total interest-bearing liabilities |
3.95 |
% |
3.83 |
% |
3.68 |
% |
3.52 |
% |
3.15 |
% |
3.89 |
% |
2.97 |
% |
|||||||||||||||
|
Net interest rate spread (tax equivalent) (1) |
1.48 |
% |
1.49 |
% |
1.71 |
% |
1.67 |
% |
1.69 |
% |
1.48 |
% |
1.75 |
% |
|||||||||||||||
|
Net interest margin (tax equivalent) (1) |
2.05 |
% |
2.06 |
% |
2.29 |
% |
2.22 |
% |
2.18 |
% |
2.06 |
% |
2.22 |
% |
|||||||||||||||
|
Ratio of interest-earning assets to interest-bearing liabilities |
1.17 |
X |
1.17 |
X |
1.19 |
X |
1.18 |
X |
1.18 |
X |
1.17 |
X |
1.19 |
X |
|
(1) |
Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented. |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540011
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT and LOAN COMPOSITION
(Unaudited)
Deposit Composition
|
2Q24 vs. |
2Q24 vs. |
||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
1Q24 |
2Q23 |
|||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
% Change |
% Change |
||||||||||||||
|
Noninterest bearing |
$ |
825,327 |
$ |
815,937 |
$ |
847,416 |
$ |
874,420 |
$ |
827,820 |
1.2 |
% |
(0.3) |
% |
|||||||
|
Interest bearing: |
|||||||||||||||||||||
|
Certificate of deposit accounts |
2,435,894 |
2,529,095 |
2,311,290 |
2,321,369 |
2,232,696 |
(3.7) |
9.1 |
||||||||||||||
|
Savings accounts |
103,296 |
105,147 |
108,605 |
112,730 |
118,886 |
(1.8) |
(13.1) |
||||||||||||||
|
Money market accounts |
1,710,376 |
1,717,298 |
1,726,404 |
1,551,176 |
1,594,637 |
(0.4) |
7.3 |
||||||||||||||
|
NOW accounts |
1,774,268 |
2,003,649 |
1,771,164 |
1,749,802 |
1,891,834 |
(11.4) |
(6.2) |
||||||||||||||
|
Total interest-bearing deposits |
6,023,834 |
6,355,189 |
5,917,463 |
5,735,077 |
5,838,053 |
(5.2) |
3.2 |
||||||||||||||
|
Total due to depositors |
6,849,161 |
7,171,126 |
6,764,879 |
6,609,497 |
6,665,873 |
(4.5) |
2.7 |
||||||||||||||
|
Mortgagors' escrow deposits |
57,702 |
82,081 |
50,382 |
72,012 |
57,817 |
(29.7) |
(0.2) |
||||||||||||||
|
Total deposits |
$ |
6,906,863 |
$ |
7,253,207 |
$ |
6,815,261 |
$ |
6,681,509 |
$ |
6,723,690 |
(4.8) |
% |
2.7 |
% |
Loan Composition
|
2Q24 vs. |
2Q24 vs. |
||||||||||||||||||||
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
1Q24 |
2Q23 |
||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
% Change |
% Change |
||||||||||||||
|
Multifamily residential |
$ |
2,631,751 |
$ |
2,622,737 |
$ |
2,658,205 |
$ |
2,614,219 |
$ |
2,593,955 |
0.3 |
% |
1.5 |
% |
|||||||
|
Commercial real estate |
1,894,509 |
1,925,312 |
1,958,252 |
1,953,243 |
1,917,749 |
(1.6) |
(1.2) |
||||||||||||||
|
One-to-four family ― mixeduseproperty |
518,510 |
516,198 |
530,243 |
537,744 |
542,368 |
0.4 |
(4.4) |
||||||||||||||
|
One-to-four family ― residential |
261,716 |
267,156 |
220,213 |
222,874 |
230,055 |
(2.0) |
13.8 |
||||||||||||||
|
Construction |
65,161 |
60,568 |
58,673 |
59,903 |
57,325 |
7.6 |
13.7 |
||||||||||||||
|
Mortgage loans |
5,371,647 |
5,391,971 |
5,425,586 |
5,387,983 |
5,341,452 |
(0.4) |
0.6 |
||||||||||||||
|
Small Business Administration |
13,957 |
16,244 |
20,205 |
21,896 |
22,404 |
(14.1) |
(37.7) |
||||||||||||||
|
Commercial business and other |
1,389,711 |
1,411,725 |
1,452,518 |
1,487,775 |
1,466,358 |
(1.6) |
(5.2) |
||||||||||||||
|
Commercial Business loans |
1,403,668 |
1,427,969 |
1,472,723 |
1,509,671 |
1,488,762 |
(1.7) |
(5.7) |
||||||||||||||
|
Gross loans |
6,775,315 |
6,819,940 |
6,898,309 |
6,897,654 |
6,830,214 |
(0.7) |
(0.8) |
||||||||||||||
|
Net unamortized (premiums) and unearned loan (cost) fees (1) |
1,711 |
2,003 |
8,641 |
(1,580) |
2,211 |
(14.6) |
(22.6) |
||||||||||||||
|
Allowance for credit losses |
(41,648) |
(40,752) |
(40,161) |
(39,228) |
(38,593) |
2.2 |
7.9 |
||||||||||||||
|
Net loans |
$ |
6,735,378 |
$ |
6,781,191 |
$ |
6,866,789 |
$ |
6,856,846 |
$ |
6,793,832 |
(0.7) |
% |
(0.9) |
% |
|
(1) |
Includes $3.4 million, $3.6 million, $3.9 million, $4.4 million, and $4.8 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively. |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540012
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOAN CLOSINGS and RATES
(Unaudited)
Loan Closings
|
For the three months ended |
For the six months ended |
|||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
||||||||||||||||
|
(In thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||
|
Multifamily residential |
$ |
27,966 |
$ |
11,805 |
$ |
82,995 |
$ |
75,655 |
$ |
31,901 |
$ |
39,771 |
$ |
74,065 |
||||||||
|
Commercial real estate |
20,573 |
10,040 |
60,092 |
70,197 |
38,523 |
30,613 |
54,093 |
|||||||||||||||
|
One-to-four family - mixeduseproperty |
3,980 |
750 |
3,319 |
6,028 |
5,812 |
4,730 |
10,750 |
|||||||||||||||
|
One-to-four family - residential |
689 |
52,539 |
1,454 |
1,070 |
63 |
53,228 |
4,359 |
|||||||||||||||
|
Construction |
4,594 |
1,895 |
8,007 |
6,971 |
8,811 |
6,489 |
19,403 |
|||||||||||||||
|
Mortgage loans |
57,802 |
77,029 |
155,867 |
159,921 |
85,110 |
134,831 |
162,670 |
|||||||||||||||
|
Small Business Administration |
- |
- |
1,162 |
- |
820 |
- |
1,138 |
|||||||||||||||
|
Commercial business and other |
68,162 |
52,955 |
87,255 |
81,549 |
72,850 |
121,117 |
168,518 |
|||||||||||||||
|
Commercial Business loans |
68,162 |
52,955 |
88,417 |
81,549 |
73,670 |
121,117 |
169,656 |
|||||||||||||||
|
Total Closings |
$ |
125,964 |
$ |
129,984 |
$ |
244,284 |
$ |
241,470 |
$ |
158,780 |
$ |
255,948 |
$ |
332,326 |
Weighted Average Rate on Loan Closings
|
For the three months ended |
|||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||
|
Loan type |
2024 |
2024 |
2023 |
2023 |
2023 |
||||||||||
|
Mortgage loans |
7.58 |
% |
6.36 |
% |
7.55 |
% |
7.22 |
% |
6.62 |
% |
|||||
|
Commercial Business loans |
7.94 |
8.29 |
7.93 |
8.00 |
7.76 |
||||||||||
|
Total loans |
7.77 |
% |
7.13 |
% |
7.69 |
% |
7.48 |
% |
7.14 |
% |
|||||
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540013
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)
Allowance for Credit Losses
|
For the three months ended |
For the six months ended |
|||||||||||||||||||||||||||||
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||
|
Allowance for credit losses - loans |
||||||||||||||||||||||||||||||
|
Beginning balances |
$ |
40,752 |
$ |
40,161 |
$ |
39,228 |
$ |
38,593 |
$ |
38,729 |
$ |
40,161 |
$ |
40,442 |
||||||||||||||||
|
Net loan charge-off (recoveries): |
||||||||||||||||||||||||||||||
|
Multifamily residential |
(1) |
- |
(1) |
- |
- |
(1) |
(1) |
|||||||||||||||||||||||
|
Commercial real estate |
- |
- |
- |
- |
8 |
- |
8 |
|||||||||||||||||||||||
|
One-to-four family - mixed-use property |
(2) |
- |
(1) |
- |
- |
(2) |
- |
|||||||||||||||||||||||
|
One-to-four family - residential |
(2) |
13 |
9 |
(6) |
4 |
11 |
(32) |
|||||||||||||||||||||||
|
Small Business Administration |
(91) |
(5) |
(29) |
(48) |
(158) |
(96) |
(164) |
|||||||||||||||||||||||
|
Commercial business and other |
4 |
(4) |
82 |
12 |
1,706 |
- |
10,983 |
|||||||||||||||||||||||
|
Total net loan charge-offs (recoveries) |
(92) |
4 |
60 |
(42) |
1,560 |
(88) |
10,794 |
|||||||||||||||||||||||
|
Provision (benefit) for loan losses |
804 |
595 |
993 |
593 |
1,424 |
1,399 |
8,945 |
|||||||||||||||||||||||
|
Ending balance |
$ |
41,648 |
$ |
40,752 |
$ |
40,161 |
$ |
39,228 |
$ |
38,593 |
$ |
41,648 |
$ |
38,593 |
||||||||||||||||
|
Gross charge-offs |
$ |
11 |
$ |
58 |
$ |
107 |
$ |
21 |
$ |
1,731 |
$ |
69 |
$ |
11,029 |
||||||||||||||||
|
Gross recoveries |
103 |
54 |
47 |
63 |
171 |
157 |
235 |
|||||||||||||||||||||||
|
Allowance for credit losses - loans to gross loans |
0.61 |
% |
0.60 |
% |
0.58 |
% |
0.57 |
% |
0.57 |
% |
0.61 |
% |
0.57 |
% |
||||||||||||||||
|
Net loan charge-offs (recoveries) to average loans |
(0.01) |
- |
- |
- |
0.09 |
- |
0.32 |
Nonperforming Assets
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
|||||||||||||||
|
Loans 90 Days or More Past Due and Still Accruing: |
||||||||||||||||||||
|
Multifamily residential |
$ |
- |
$ |
- |
$ |
1,463 |
$ |
- |
$ |
- |
||||||||||
|
Total Loans 90 Days or more past due and still accruing |
- |
- |
1,463 |
- |
- |
|||||||||||||||
|
Nonaccrual Loans: |
||||||||||||||||||||
|
Multifamily residential |
13,774 |
4,669 |
3,206 |
3,206 |
3,206 |
|||||||||||||||
|
One-to-four family - mixed-use property |
909 |
911 |
981 |
1,075 |
790 |
|||||||||||||||
|
One-to-four family - residential |
3,633 |
3,768 |
5,181 |
4,161 |
5,218 |
|||||||||||||||
|
Small Business Administration |
2,552 |
2,552 |
2,552 |
1,255 |
1,119 |
|||||||||||||||
|
Commercial business and other |
13,672 |
12,929 |
11,789 |
7,708 |
8,304 |
|||||||||||||||
|
Total Nonaccrual loans |
34,540 |
24,829 |
23,709 |
17,405 |
18,637 |
|||||||||||||||
|
Total Nonperforming Loans (NPLs) |
34,540 |
24,829 |
25,172 |
17,405 |
18,637 |
|||||||||||||||
|
Other Nonperforming Assets: |
||||||||||||||||||||
|
Real estate acquired through foreclosure |
665 |
665 |
- |
- |
- |
|||||||||||||||
|
Total Other nonperforming assets |
665 |
665 |
- |
- |
- |
|||||||||||||||
|
Total Nonaccrual HTM Securities |
20,627 |
20,760 |
20,981 |
20,981 |
20,981 |
|||||||||||||||
|
Total Nonperforming Assets |
$ |
55,832 |
$ |
46,254 |
$ |
46,153 |
$ |
38,386 |
$ |
39,618 |
||||||||||
|
Nonperforming Assets to Total Assets |
0.61 |
% |
0.53 |
% |
0.54 |
% |
0.45 |
% |
0.47 |
% |
||||||||||
|
Allowance for Credit Losses to NPLs |
120.6 |
% |
164.1 |
% |
159.5 |
% |
225.4 |
% |
207.1 |
% |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540014
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
Non-cash Fair Value Adjustments to GAAP Earnings
The variance in GAAP 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.
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540015
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(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, |
|||||||||||||||||||||||
|
except per share data) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||
|
GAAP income before income taxes |
$ |
7,136 |
$ |
4,997 |
$ |
11,754 |
$ |
10,752 |
$ |
11,872 |
$ |
12,133 |
$ |
17,327 |
||||||||||||||||
|
Net (gain) loss from fair value adjustments (Noninterest income (loss)) |
(57) |
834 |
(906) |
1,246 |
(294) |
777 |
(2,913) |
|||||||||||||||||||||||
|
Life insurance proceeds (Noninterest income (loss)) |
- |
- |
(697) |
(23) |
(561) |
- |
(561) |
|||||||||||||||||||||||
|
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income) |
(177) |
187 |
872 |
(1,348) |
205 |
10 |
105 |
|||||||||||||||||||||||
|
Net amortization of purchase accounting adjustments and intangibles (Various) |
(85) |
(169) |
(355) |
(237) |
(227) |
(254) |
(415) |
|||||||||||||||||||||||
|
Miscellaneous expense (Professional services) |
494 |
- |
526 |
- |
- |
494 |
- |
|||||||||||||||||||||||
|
Core income before taxes |
7,311 |
5,849 |
11,194 |
10,390 |
10,995 |
13,160 |
13,543 |
|||||||||||||||||||||||
|
Provision for core income taxes |
1,855 |
1,537 |
3,648 |
2,819 |
3,083 |
3,392 |
3,742 |
|||||||||||||||||||||||
|
Core net income |
$ |
5,456 |
$ |
4,312 |
$ |
7,546 |
$ |
7,571 |
$ |
7,912 |
$ |
9,768 |
$ |
9,801 |
||||||||||||||||
|
GAAP diluted earnings per common share |
$ |
0.18 |
$ |
0.12 |
$ |
0.27 |
$ |
0.26 |
$ |
0.29 |
$ |
0.30 |
$ |
0.42 |
||||||||||||||||
|
Net (gain) loss from fair value adjustments, net of tax |
(0.01) |
0.02 |
(0.02) |
0.03 |
(0.01) |
0.02 |
(0.07) |
|||||||||||||||||||||||
|
Life insurance proceeds |
- |
- |
(0.02) |
- |
(0.02) |
- |
(0.02) |
|||||||||||||||||||||||
|
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax |
- |
- |
0.02 |
(0.03) |
- |
- |
- |
|||||||||||||||||||||||
|
Net amortization of purchase accounting adjustments, net of tax |
- |
- |
(0.01) |
(0.01) |
(0.01) |
(0.01) |
- |
|||||||||||||||||||||||
|
Miscellaneous expense, net of tax |
0.01 |
- |
0.01 |
- |
- |
0.01 |
- |
|||||||||||||||||||||||
|
Core diluted earnings per common share(1) |
$ |
0.18 |
$ |
0.14 |
$ |
0.25 |
$ |
0.25 |
$ |
0.26 |
$ |
0.33 |
$ |
0.32 |
||||||||||||||||
|
Core net income, as calculated above |
$ |
5,456 |
$ |
4,312 |
$ |
7,546 |
$ |
7,571 |
$ |
7,912 |
$ |
9,768 |
$ |
9,801 |
||||||||||||||||
|
Average assets |
8,830,665 |
8,707,505 |
8,569,002 |
8,505,346 |
8,462,442 |
8,769,085 |
8,465,363 |
|||||||||||||||||||||||
|
Average equity |
667,557 |
669,185 |
669,819 |
675,041 |
672,835 |
668,371 |
677,917 |
|||||||||||||||||||||||
|
Core return on average assets(2) |
0.25 |
% |
0.20 |
% |
0.35 |
% |
0.36 |
% |
0.37 |
% |
0.22 |
% |
0.23 |
% |
||||||||||||||||
|
Core return on average equity(2) |
3.27 |
% |
2.58 |
% |
4.51 |
% |
4.49 |
% |
4.70 |
% |
2.92 |
% |
2.89 |
% |
|
(1) |
Core diluted earnings per common share may not foot due to rounding. |
|
(2) |
Ratios are calculated on an annualized basis. |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540016
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 |
||||||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||||||||
|
GAAP Net interest income |
$ |
42,776 |
$ |
42,397 |
$ |
46,085 |
$ |
44,427 |
$ |
43,378 |
$ |
85,173 |
$ |
88,640 |
|||||||||||
|
Net (gain) loss from fair value adjustments on qualifying hedges |
(177) |
187 |
872 |
(1,348) |
205 |
10 |
105 |
||||||||||||||||||
|
Net amortization of purchase accounting adjustments |
(182) |
(271) |
(461) |
(347) |
(340) |
(453) |
(646) |
||||||||||||||||||
|
Core Net interest income |
$ |
42,417 |
$ |
42,313 |
$ |
46,496 |
$ |
42,732 |
$ |
43,243 |
$ |
84,730 |
$ |
88,099 |
|||||||||||
|
GAAP Noninterest income |
$ |
4,216 |
$ |
3,084 |
$ |
7,402 |
$ |
3,309 |
$ |
5,020 |
$ |
7,300 |
$ |
11,877 |
|||||||||||
|
Net (gain) loss from fair value adjustments |
(57) |
834 |
(906) |
1,246 |
(294) |
777 |
(2,913) |
||||||||||||||||||
|
Life insurance proceeds |
- |
- |
(697) |
(23) |
(561) |
- |
(561) |
||||||||||||||||||
|
Core Noninterest income |
$ |
4,159 |
$ |
3,918 |
$ |
5,799 |
$ |
4,532 |
$ |
4,165 |
$ |
8,077 |
$ |
8,403 |
|||||||||||
|
GAAP Noninterest expense |
$ |
39,047 |
$ |
39,892 |
$ |
40,735 |
$ |
36,388 |
$ |
35,110 |
$ |
78,939 |
$ |
74,266 |
|||||||||||
|
Net amortization of purchase accounting adjustments |
(97) |
(102) |
(106) |
(110) |
(113) |
(199) |
(231) |
||||||||||||||||||
|
Miscellaneous expense |
(494) |
- |
(526) |
- |
- |
(494) |
- |
||||||||||||||||||
|
Core Noninterest expense |
$ |
38,456 |
$ |
39,790 |
$ |
40,103 |
$ |
36,278 |
$ |
34,997 |
$ |
78,246 |
$ |
74,035 |
|||||||||||
|
Net interest income |
$ |
42,776 |
$ |
42,397 |
$ |
46,085 |
$ |
44,427 |
$ |
43,378 |
$ |
85,173 |
$ |
88,640 |
|||||||||||
|
Noninterest income |
4,216 |
3,084 |
7,402 |
3,309 |
5,020 |
7,300 |
11,877 |
||||||||||||||||||
|
Noninterest expense |
(39,047) |
(39,892) |
(40,735) |
(36,388) |
(35,110) |
(78,939) |
(74,266) |
||||||||||||||||||
|
Pre-provision pre-tax net revenue |
$ |
7,945 |
$ |
5,589 |
$ |
12,752 |
$ |
11,348 |
$ |
13,288 |
$ |
13,534 |
$ |
26,251 |
|||||||||||
|
Core: |
|||||||||||||||||||||||||
|
Net interest income |
$ |
42,417 |
$ |
42,313 |
$ |
46,496 |
$ |
42,732 |
$ |
43,243 |
$ |
84,730 |
$ |
88,099 |
|||||||||||
|
Noninterest income |
4,159 |
3,918 |
5,799 |
4,532 |
4,165 |
8,077 |
8,403 |
||||||||||||||||||
|
Noninterest expense |
(38,456) |
(39,790) |
(40,103) |
(36,278) |
(34,997) |
(78,246) |
(74,035) |
||||||||||||||||||
|
Pre-provision pre-tax net revenue |
$ |
8,120 |
$ |
6,441 |
$ |
12,192 |
$ |
10,986 |
$ |
12,411 |
$ |
14,561 |
$ |
22,467 |
|||||||||||
|
Efficiency Ratio |
82.6 |
% |
86.1 |
% |
76.7 |
% |
76.8 |
% |
73.8 |
% |
84.3 |
% |
76.7 |
% |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540017
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 |
||||||||||||||||||||||||||
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
2024 |
2023 |
||||||||||||||||||||
|
GAAP net interest income |
$ |
42,776 |
$ |
42,397 |
$ |
46,085 |
$ |
44,427 |
$ |
43,378 |
$ |
85,173 |
$ |
88,640 |
|||||||||||||
|
Net (gain) loss from fair value adjustments on qualifying hedges |
(177) |
187 |
872 |
(1,348) |
205 |
10 |
105 |
||||||||||||||||||||
|
Net amortization of purchase accounting adjustments |
(182) |
(271) |
(461) |
(347) |
(340) |
(453) |
(646) |
||||||||||||||||||||
|
Tax equivalent adjustment |
98 |
100 |
101 |
102 |
101 |
198 |
201 |
||||||||||||||||||||
|
Core net interest income FTE |
$ |
42,515 |
$ |
42,413 |
$ |
46,597 |
$ |
42,834 |
$ |
43,344 |
$ |
84,928 |
$ |
88,300 |
|||||||||||||
|
Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from nonaccrual loans |
(369) |
(928) |
(3,416) |
(857) |
(315) |
(1,297) |
(995) |
||||||||||||||||||||
|
Net interest income FTE excluding episodic items |
$ |
42,146 |
$ |
41,485 |
$ |
43,181 |
$ |
41,977 |
$ |
43,029 |
$ |
83,631 |
$ |
87,305 |
|||||||||||||
|
Total average interest-earning assets (1) |
$ |
8,358,006 |
$ |
8,238,395 |
$ |
8,080,550 |
$ |
8,027,201 |
$ |
7,996,067 |
$ |
8,298,199 |
$ |
8,001,489 |
|||||||||||||
|
Core net interest margin FTE |
2.03 |
% |
2.06 |
% |
2.31 |
% |
2.13 |
% |
2.17 |
% |
2.05 |
% |
2.21 |
% |
|||||||||||||
|
Net interest margin FTE excluding episodic items |
2.02 |
% |
2.01 |
% |
2.14 |
% |
2.09 |
% |
2.15 |
% |
2.02 |
% |
2.18 |
% |
|||||||||||||
|
GAAP interest income on total loans, net |
$ |
92,728 |
$ |
92,959 |
$ |
95,616 |
$ |
91,466 |
$ |
85,377 |
$ |
185,687 |
$ |
168,266 |
|||||||||||||
|
Net (gain) loss from fair value adjustments on qualifying hedges - loans |
(137) |
123 |
978 |
(1,379) |
157 |
(14) |
56 |
||||||||||||||||||||
|
Net amortization of purchase accounting adjustments |
(198) |
(295) |
(484) |
(358) |
(345) |
(493) |
(661) |
||||||||||||||||||||
|
Core interest income on total loans, net |
$ |
92,393 |
$ |
92,787 |
$ |
96,110 |
$ |
89,729 |
$ |
85,189 |
$ |
185,180 |
$ |
167,661 |
|||||||||||||
|
Average total loans, net (1) |
$ |
6,751,715 |
$ |
6,807,944 |
$ |
6,872,115 |
$ |
6,817,642 |
$ |
6,834,644 |
$ |
6,779,829 |
$ |
6,855,454 |
|||||||||||||
|
Core yield on total loans |
5.47 |
% |
5.45 |
% |
5.59 |
% |
5.26 |
% |
4.99 |
% |
5.46 |
% |
4.89 |
% |
|
(1) |
Excludes purchase accounting average balances for all periods presented. |
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540018
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS'
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
||||||||||||||||
|
(Dollars in thousands) |
2024 |
2024 |
2023 |
2023 |
2023 |
|||||||||||||||
|
Total Equity |
$ |
665,322 |
$ |
669,827 |
$ |
669,837 |
$ |
666,521 |
$ |
670,247 |
||||||||||
|
Less: |
||||||||||||||||||||
|
Goodwill |
(17,636) |
(17,636) |
(17,636) |
(17,636) |
(17,636) |
|||||||||||||||
|
Core deposit intangibles |
(1,322) |
(1,428) |
(1,537) |
(1,651) |
(1,769) |
|||||||||||||||
|
Tangible Stockholders' Common Equity |
$ |
646,364 |
$ |
650,763 |
$ |
650,664 |
$ |
647,234 |
$ |
650,842 |
||||||||||
|
Total Assets |
$ |
9,097,240 |
$ |
8,807,325 |
$ |
8,537,236 |
$ |
8,579,375 |
$ |
8,474,852 |
||||||||||
|
Less: |
||||||||||||||||||||
|
Goodwill |
(17,636) |
(17,636) |
(17,636) |
(17,636) |
(17,636) |
|||||||||||||||
|
Core deposit intangibles |
(1,322) |
(1,428) |
(1,537) |
(1,651) |
(1,769) |
|||||||||||||||
|
Tangible Assets |
$ |
9,078,282 |
$ |
8,788,261 |
$ |
8,518,063 |
$ |
8,560,088 |
$ |
8,455,447 |
||||||||||
|
Tangible Stockholders' Common Equity to Tangible Assets |
7.12 |
% |
7.40 |
% |
7.64 |
% |
7.56 |
% |
7.70 |
% |
||||||||||
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540019