THIRD QUARTER 2011
HIGHLIGHTS
- Core diluted earnings per common share were $0.30, a decrease
of $0.01 from the comparable prior year period, and the same as
recorded during the three months ended June 30, 2011.
- GAAP diluted earnings per common share were $0.33, a decrease
of $0.15 from the comparable prior year period, and an increase of
$0.04 from the three months ended June 30, 2011. The comparable
prior year period included a net tax benefit of $5.5 million, or
$0.18 per diluted common share. Excluding this net tax benefit,
diluted earnings per common share increased $0.03, or 10%.
- The net interest margin was 3.60%, a four basis point increase
from the comparable prior year period, and a decrease of one basis
point from the three months ended June 30, 2011.
- Loan applications in process increased $17.0 million during the
third quarter of 2011 to $214.4 million at September 30, 2011.
- Non-performing assets increased $7.6 million to $123.1 million
at September 30, 2011 from $115.5 million at June 30, 2011.
- Allowance for loan losses as a percentage of gross loans
increased to 0.92% at September 30, 2011.
- Other-than-temporary impairment charges of $0.7 million were
recorded on four private issue collateralized mortgage obligations
during the three months ended September 30, 2011.
- The provision for loan losses in the third quarter of 2011
totaled $5.0 million.
- Net charge-offs for the three and nine months ended September
30, 2011 were $4.8 million, or 0.59% and $13.1 million, or 0.54% of
average loans, respectively.
Flushing Financial Corporation (the "Company") (Nasdaq:FFIC), the
parent holding company for Flushing Savings Bank, FSB (the "Bank"),
today announced its financial results for the three and nine months
ended September 30, 2011.
John R. Buran, President and Chief Executive Officer, stated:
"GAAP net income was $10.2 million, or $0.33 per diluted common
share for the three months ended September 30, 2011, which was a
decrease of $4.5 million, or $0.15 per diluted common share from
the comparable prior year period. However, after excluding a
non-recurring net tax benefit of $5.5 million, or $0.18 per diluted
common share, recorded during the three months ended September 30,
2010 due to a legislative change in the New York State and City tax
bad debt deduction, net income increased $1.0 million, or $0.03 per
diluted common share. Core net income was $9.3 million, or $0.30
per diluted common share for the three months ended September 30,
2011, which was the same as that recorded for the three months
ended June 30, 2011.
"Loan originations for the third quarter of 2011 totaled $105.9
million, an increase of $26.2 million from the comparable prior
year period and an increase of $27.6 million from the three months
ended June 30, 2011. We have seen an increase in loan demand as
loan applications in process totaled $214.4 million at September
30, 2011 an increase of $17.0 million from June 30, 2011 and an
increase of $72.2 million from December 31, 2010. Although we are
encouraged by the increases in loan originations and loan demand,
origination activity still remains below pre-recession levels. We
continue to focus on originating multi-family mortgage loans while
at the same time deemphasizing the origination of non-owner
occupied commercial real estate and construction loans. In
addition, we have allowed commercial real estate borrowers who do
not have their deposits with us to refinance with other
institutions. During the third quarter of 2011, the total
originations of multi-family mortgage loans increased $22.4 million
to $61.0 million from the comparable prior year period, while the
combined total of commercial real estate and construction loan
originations was cut in half to $4.1 million for the third quarter
of 2011 from the comparable prior year period. As a result, total
net loans decreased $2.4 million from June 30, 2011 to $3,199.5
million at September 30, 2011.
"As loan originations continue to remain below pre-recession
levels, we have focused on reducing our cost of funds. We reduced
our total cost of interest-bearing liabilities by 36 basis points
to 2.03% for the three months ended September 30, 2011 from 2.39%
for the comparable prior year period. The cost of due to depositors
decreased 21 basis points to 1.62% for the three months ended
September 30, 2011 from 1.83% for the comparable prior year period.
We also have been strategically decreasing borrowed funds by
replacing maturing advances with lower costing deposits or
extending maturities and locking in today's lower costs. During the
third quarter of 2011, we refinanced $106.5 million in advances
that were scheduled to mature in 2012 and 2013 at a savings of 120
basis points and extended the terms to mature in 2015, 2016 and
2017.
"To further reduce our funding costs, we continue to make a
concerted effort to attract more non-interest bearing deposits,
primarily business deposits. As a result, the average balance of
non-interest bearing deposits increased $22.7 million, of which
$21.9 million of the increase was business deposits, to $110.8
million for the three months ended September 30, 2011 from $88.1
million for the comparable prior year period. In July 2011, we
also introduced an interest bearing checking account for businesses
when this product became permissible by the Dodd Frank Wall Street
Reform and Consumer Protection Act. At September 30, 2011, we had
$32.5 million in this new checking account product. We believe this
product will provide an additional source of lower costing funding
for the Company.
"Loans delinquent over 30 days totaled $187.7 million at
September 30, 2011, an increase of $2.0 million from June 30, 2011,
but a decrease of $24.8 million from December 31, 2010. Non-accrual
loans increased $1.7 million in the third quarter of 2011 from June
30, 2011. However, total loans delinquent over 90 days decreased
$10.1 million from June 30, 2011 to $98.0 million at September 30,
2011, with loans classified Substandard decreasing $12.9 million
during the same period. During the three months ended September 30,
2011, we sold 18 non-performing loans totaling $7.4 million. The
increase in non-accrual loans during the third quarter of 2011 was
primarily due to the reclassification of one $11.5 million
construction loan, which was classified as a performing accruing
troubled debt restructured during the second quarter of 2011, to
non-accrual status during the third quarter of 2011, as the loan
had not complied with its modified terms. While construction on
this project is complete, there have been delays in obtaining the
certificate of occupancy. We anticipate the borrower obtaining the
certificate of occupancy and accepting contracts on the units in
the near term. The project is comprised of two-family homes, and
has sufficient collateral value to repay the loan.
"Net charge-offs for the third quarter of 2011 totaled $4.8
million, an increase of $1.7 million from the second quarter of
2011. The majority of our non-performing loans are collateralized
by residential income producing properties located in the New York
City metropolitan area that continue to show low vacancy rates,
thereby retaining more of their value. The current loan-to-value
ratio for our non-performing loans collateralized by real estate
was 61.7% at September 30, 2011. We realized 85 cents on the dollar
from the sale of non-performing loans during the three months ended
September 30, 2011. When we have obtained properties through
foreclosure, we have been able to quickly sell the properties at
amounts that approximate book value. We anticipate that we will
continue to see low loss content in this portfolio that constitutes
the majority of our non-performing loans. The provision for loan
losses recorded in the third quarter of 2011 was unchanged at $5.0
million from that recorded in the second quarter of 2011.
"At September 30, 2011, the Bank continues to be
well-capitalized under regulatory requirements, with Core, Tier 1
risk-based and Total risk-based capital ratios of 9.51%, 14.24% and
15.28%, respectively."
Core earnings, which exclude the effects of net gains and losses
from fair value adjustments, other-than-temporary impairment
("OTTI") charges, net gains from the sale of securities, and
certain non-recurring items, were $9.3 million for the three months
ended September 30, 2011, a decrease of $0.1 million, or 1.0%, from
$9.4 million in the comparable prior year period. Core diluted
earnings per common share were $0.30 for the three months ended
September 30, 2011, a decrease of $0.01, or 0.3%, from the
comparable prior year period.
Core earnings for the nine months ended September 30, 2011 were
$27.4 million, an increase of $1.7 million, or 6.8%, from $25.6
million for the comparable prior year period. Core diluted
earnings per common share were $0.89 for the nine months ended
September 30, 2011, an increase of $0.05 per common share, or 6.0%,
from $0.84 per common share in the comparable prior year
period.
For a reconciliation of core earnings and core diluted earnings
per common share to accounting principles generally accepted in the
United States ("GAAP") net income and GAAP diluted earnings per
common share, please refer to the tables in the section titled
"Reconciliation of GAAP and Core Earnings."
Earnings Summary - Three Months Ended September 30,
2011
Net income for the three months ended September 30, 2011 was
$10.2 million, a decrease of $4.5 million, or 30.6%, compared to
$14.6 million for the three months ended September 30, 2010.
Diluted earnings per common share were $0.33 for the three months
ended September 30, 2011, a decrease of $0.15, or 31.3%, from $0.48
for the three months ended September 30, 2010. The three months
ended September 30, 2010 included a net tax benefit of $5.5
million, or $0.18 per diluted common share, due to a legislative
change in the New York State and City tax bad debt deduction.
Excluding this net tax benefit, net income and diluted earnings per
common share would have increased $1.0 million and $0.03,
respectively.
Return on average equity was 9.9% for the three months ended
September 30, 2011 compared to 15.4% for the three months ended
September 30, 2010. Return on average assets was 0.9% for the three
months ended September 30, 2011 compared to 1.4% for the three
months ended September 30, 2010. Excluding the net tax benefit
discussed above, return on average equity and return on average
assets would have been 9.6% and 0.9%, respectively, for the three
months ended September 30, 2010.
For the three months ended September 30, 2011, net interest
income was $37.1 million, an increase of $1.2 million, or 3.5%,
from $35.9 million for the three months ended September 30, 2010.
The increase in net interest income is attributable to a four basis
point increase in the net-interest spread to 3.44% for the three
months ended September 30, 2011 from 3.40% for the three months
ended September 30, 2010, combined with an increase in the average
balance of interest-earning assets of $88.1 million to $4,117.1
million for the three months ended September 30, 2011. The
yield on interest-earning assets decreased 32 basis points to 5.47%
for the three months ended September 30, 2011 from 5.79% for the
three months ended September 30, 2010. However, this was more than
offset by a decline in the cost of funds of 36 basis points to
2.03% for the three months ended September 30, 2011 from 2.39% for
the comparable prior year period. The net interest margin improved
four basis points to 3.60% for the three months ended September 30,
2011 from 3.56% for the three months ended September 30, 2010.
Excluding prepayment penalty income, the net interest margin would
have increased three basis points to 3.54% for the three months
ended September 30, 2011 from 3.51% for the three months ended
September 30, 2010.
The 32 basis point decline in the yield of interest-earning
assets was primarily due to a 19 basis point reduction in the yield
of the loan portfolio to 5.96% for the three months ended September
30, 2011 from 6.15% for the three months ended September 30, 2010,
combined with a 34 basis point decline in the yield on total
securities to 4.07% for the three months ended September 30, 2011
from 4.41% for the comparable prior year period. In addition, the
yield of interest-earning assets was negatively impacted by a $52.2
million decrease in the average balance of the higher yielding loan
portfolio for the three months ended September 30, 2011 and a
$140.3 million increase in the combined average balances of the
lower yielding securities portfolio and interest-earning deposits
for the three months ended September 30, 2011, both of which have a
lower yield than the yield of total interest-earning assets. The 19
basis point decrease in the loan portfolio was primarily due to the
decline in the rates earned on new loan originations. The 34 basis
point decrease in the securities portfolio was primarily due to the
purchase of new securities at lower yields than the existing
portfolio. The yield on the mortgage loan portfolio decreased 19
basis points to 6.03% for the three months ended September 30, 2011
from 6.22% for the three months ended September 30, 2010. The
yield on the mortgage loan portfolio, excluding prepayment penalty
income, decreased 21 basis points to 5.94% for the three months
ended September 30, 2011 from 6.15% for the three months ended
September 30, 2010.
The 36 basis point decrease in the cost of interest-bearing
liabilities is primarily attributable to the Bank reducing the
rates it pays on its deposit products and reducing higher costing
borrowed funds. The cost of certificates of deposit, money market
accounts, savings accounts and NOW accounts decreased 37 basis
points, 44 basis points, 22 basis points and 28 basis points,
respectively, for the three months ended September 30, 2011 from
the comparable prior year period. This resulted in a decrease
in the cost of due to depositors of 21 basis points to 1.62% for
the three months ended September 30, 2011 from 1.83% for the three
months ended September 30, 2010. The cost of borrowed funds
decreased 63 basis points from the comparable prior year period to
3.83% for the three months ended September 30, 2011, while the
average balance decreased $88.5 million to $726.7 million for the
three months ended September 30, 2011 from $815.2 million for the
comparable prior year period.
The net interest margin for the three months ended September 30,
2011 decreased one basis point to 3.60% from 3.61% for the three
months ended June 30, 2011. The yield on interest-earning assets
decreased seven basis points during the third quarter of 2011 while
the cost of interest-bearing liabilities decreased six basis points
to 2.03%. Excluding prepayment penalty income, the net interest
margin would have been 3.54% for the three months ended September
30, 2011, the same as that for the three months ended June 30,
2011.
A provision for loan losses of $5.0 million was recorded for the
three months ended September 30, 2011, which was the same as that
recorded for the three months ended September 30, 2010.
During the three months ended September 30, 2011,
non-performing loans increased $6.3 million to $116.4 million from
$110.0 million at June 30, 2011. Net charge-offs for the three
months ended September 30, 2011 totaled $4.8 million.
Non-performing loans primarily consists of mortgage loans
collateralized by residential income producing properties located
in the New York City metropolitan market that continue to show low
vacancy rates, thereby retaining more of their value. The current
loan-to-value ratio for our non-performing loans collateralized by
real estate was 61.7% at September 30, 2011. When we have obtained
properties through foreclosure, we have been able to quickly sell
the properties at amounts that approximate book value. We
anticipate that we will continue to see low loss content in this
segment of the loan portfolio that constitutes the majority of our
non-performing loans. The Bank continues to maintain conservative
underwriting standards. However, given the level of non-performing
loans, the current economic uncertainties, and the charge-offs
recorded in the third quarter of 2011, management, as a result of
the regular quarterly analysis of the allowance for loans losses,
deemed it necessary to record a $5.0 million provision for possible
loan losses in the third quarter of 2011.
Non-interest income for the three months ended September 30,
2011 was $4.3 million, an increase of $2.3 million from $1.9
million for the three months ended September 30, 2010. The
increase in non-interest income was primarily due to a $2.1 million
increase in net gains from fair value adjustments and a $0.5
million increase in net gains from the sale of loans. These
increases were partially offset by a $0.1 million increase in OTTI
charges recorded and a $0.1 million decline in dividends received
from the FHLB-NY, from the comparable prior year period.
Non-interest expense was $19.5 million for the three months
ended September 30, 2011, an increase of $1.8 million, or 10.4%,
from $17.7 million for the three months ended September 30, 2010.
The increase was primarily due to the growth of the Bank over the
past year, which included the opening of a new branch in January
2011, an increase in stock based compensation expense, employee
benefits expense and other real estate owned/foreclosure expense.
Salaries and benefits increased $1.0 million due to a new branch,
employee salary increases as of January 1, 2011, and increases in
stock based compensation, payroll taxes, and employee medical and
retirement costs. Other real estate owned/foreclosure expense
increased $0.4 million and other operating expense increased $0.2
million. These increases were partially offset by a $0.2 million
decrease in FDIC assessments during the three months ended
September 30, 2011 from the comparable prior year period. The
efficiency ratio was 48.3% for the three months ended September 30,
2011 compared to 46.0% for the three months ended September 30,
2010.
Earnings Summary - Nine Months Ended September 30,
2011
Net income for the nine months ended September 30, 2011 was
$27.2 million, a decrease of $3.1 million, or 10.3%, compared to
$30.3 million for the nine months ended September 30, 2010. Diluted
earnings per common share were $0.88 for the nine months ended
September 30, 2011, a decrease of $0.12, or 12.0%, from $1.00 for
the nine months ended September 30, 2010. The nine months ended
September 30, 2010 included a net tax benefit of $5.5 million, or
$0.18 per diluted common share, due to a legislative change in the
New York State and City tax bad debt deduction. Excluding this net
tax benefit, net income and diluted earnings per common share would
have increased $2.4 million and $0.06, respectively.
Return on average equity was 9.1% for the nine months ended
September 30, 2011 compared to 10.9% for the nine months ended
September 30, 2010. Return on average assets was 0.8% for the
nine months ended September 30, 2011 compared to 1.0% for the nine
months ended September 30, 2010. Excluding the net tax benefit
discussed previously return on average equity and return on average
assets would have been 8.9% and 0.8%, respectively, for the nine
months ended September 30, 2010.
For the nine months ended September 30, 2011, net interest
income was $111.1 million, an increase of $8.2 million, or 8.0%,
from $102.8 million for the nine months ended September 30, 2010.
The increase in net interest income is attributable to an increase
in the average balance of interest-earning assets of $114.7 million
to $4,101.2 million for the nine months ended September 30, 2011,
combined with an increase in the net interest spread of 18 basis
points to 3.45% for the nine months ended September 30, 2011 from
3.27% for the nine months ended September 30, 2010. The yield on
interest-earning assets decreased 27 basis points to 5.52% for the
nine months ended September 30, 2011 from 5.79% for the nine months
ended September 30, 2010. However, this was more than offset by a
decline in the cost of funds of 45 basis points to 2.07% for the
nine months ended September 30, 2011 from 2.52% for the comparable
prior year period. The net interest margin improved 17 basis points
to 3.61% for the nine months ended September 30, 2011 from 3.44%
for the nine months ended September 30, 2010.
The 27 basis point decline in the yield of interest-earning
assets was primarily due to a 15 basis point reduction in the yield
of the loan portfolio to 5.98% for the nine months ended September
30, 2011 from 6.13% for the nine months ended September 30, 2010,
combined with a 34 basis point decline in the yield on total
securities to 4.14% for the nine months ended September 30, 2011
from 4.48% for the comparable prior year period. In addition, the
yield of interest-earning assets was negatively impacted by a
$124.7 million increase in the combined average balances of the
lower yielding securities portfolio and interest-earning deposits
for the nine months ended September 30, 2011, both of which have a
lower yield than the yield of total interest-earning assets. The 15
basis point decrease in the loan portfolio was primarily due to the
decline in the rates earned on new loan originations. The 34 basis
point decrease in the securities portfolio was primarily due to the
purchase of new securities at lower yields than the existing
portfolio. The yield on the mortgage loan portfolio decreased 13
basis points to 6.06% for the nine months ended September 30, 2011
from 6.19% for the nine months ended September 30, 2010. The
yield on the mortgage loan portfolio, excluding prepayment penalty
income, decreased 16 basis points to 5.98% for the nine months
ended September 30, 2011 from 6.14% for the nine months ended
September 30, 2010.
The 45 basis point decrease in the cost of interest-bearing
liabilities is primarily attributable to the Bank reducing the
rates it pays on its deposit products. The cost of certificates of
deposit, money market accounts, savings accounts and NOW accounts
decreased 50 basis points, 47 basis points, 22 basis points and 33
basis points, respectively, for the nine months ended September 30,
2011 from the comparable prior year period. This resulted in a
decrease in the cost of due to depositors of 34 basis points to
1.61% for the nine months ended September 30, 2011 from 1.95% for
the nine months ended September 30, 2010. The cost of borrowed
funds decreased 19 basis points to 4.20% for the nine months ended
September 30, 2011 from 4.39% for the nine months ended September
30, 2010 with the average balance decreasing $204.2 million to
$693.3 million for the nine months ended September 30, 2011 from
$897.5 million for the nine months ended September 30, 2010.
The net interest margin for the nine months ended September 30,
2011 increased 17 basis points to 3.61% from 3.44% for the nine
months ended September 30, 2010. The yield on interest-earning
assets decreased 27 basis points while the cost of interest-bearing
liabilities decreased 45 basis points during the nine months ended
September 30, 2011 from the comparable prior year period. Excluding
prepayment penalty income, the net interest margin would have been
3.55% for the nine months ended September 30, 2011, an increase of
15 basis points from 3.40% for the nine months ended September 30,
2010.
A provision for loan losses of $15.0 million was recorded for
the nine months ended September 30, 2011, which was the same as
that recorded in the nine months ended September 30, 2010. During
the nine months ended September 30, 2011, non-performing loans
increased $4.3 million to $116.4 million from $112.1 million at
December 31, 2010. Net charge-offs for the nine months ended
September 30, 2011 totaled $13.1 million. Non-performing loans
primarily consists of mortgage loans collateralized by residential
income producing properties located in the New York City
metropolitan market that continue to show low vacancy rates,
thereby retaining more of their value. The current loan-to-value
ratio for our non-performing loans collateralized by real estate
was 61.7% at September 30, 2011. When we have obtained properties
through foreclosure, we have been able to quickly sell the
properties at amounts that approximate book value. We anticipate
that we will continue to see low loss content in this segment of
the loan portfolio that constitutes the majority of our
non-performing loans. The Bank continues to maintain conservative
underwriting standards. However, given the level of non-performing
loans, the current economic uncertainties, and the charge-offs
recorded in 2011, management, as a result of the regular quarterly
analysis of the allowance for loans losses, deemed it necessary to
record a $15.0 million provision for possible loan losses for the
nine months ended September 30, 2011.
Non-interest income for the nine months ended September 30, 2011
was $7.3 million, an increase of $1.1 million from $6.2 million for
the nine months ended September 30, 2010. The increase in
non-interest income was primarily due to a $1.4 million increase in
net gains recorded from fair value adjustments and a $0.5 million
increase in net gains on the sale of loans for the nine months
ended September 30, 2011 compared to the nine months ended
September 30, 2010. These increases were partially offset by a $0.6
million decrease in other income and a $0.3 million decline in
dividends received from the FHLB-NY during the nine months ended
September 30, 2011 compared to the nine months ended September 30,
2010.
Non-interest expense was $58.4 million for the nine months ended
September 30, 2011, an increase of $5.2 million, or 9.7%, from
$53.2 million for the nine months ended September 30, 2010. The
increase was primarily due to the growth of the Bank over the past
year, which included the opening of a new branch in January 2011,
an increase in stock based compensation expense, and an increase in
other real estate owned/foreclosure expense. Salaries and benefits
increased $3.3 million due to a new branch, employee salary
increases as of January 1, 2011, and increases in stock based
compensation, payroll taxes, and employee medical and retirement
costs. Other real estate owned/foreclosure expense increased $0.9
million and other operating expense increased $0.8 million. The
efficiency ratio was 49.2% for the nine months ended September 30,
2011 compared to 48.0% for the nine months ended September 30,
2010.
Balance Sheet Summary – At September 30,
2011
Total assets at September 30, 2011 were $4,303.5 million, a
decrease of $21.2 million, or 0.5% from $4,324.7 million at
December 31, 2010. Total loans, net decreased $49.2 million, or
1.5%, during the nine months ended September 30, 2011 to $3,199.5
million from $3,248.6 million at December 31, 2010. Loan
originations and purchases were $283.3 million for the nine months
ended September 30, 2011, a decrease of $37.3 million from $320.6
million for the nine months ended September 30, 2010. The decline
in originations is attributable to the current economic environment
and the shifting of our focus to multi-family properties and
deemphasizing non-owner occupied commercial real estate and
construction lending. However, loan applications in process
increased to $214.4 million at September 30, 2011 compared to
$197.4 million at June 30, 2011 and $142.2 million at December 31,
2010.
The following table shows loan originations and purchases for
the periods indicated. The table includes loan purchases of $0.7
million for the three months ended September 30, 2010 and $14.5
million and $7.7 million for the nine months ended September 30,
2011 and 2010, respectively. There were no loan purchases for
the three months ended September 30, 2011.
|
For the three months
ended September 30, |
For the nine months ended
September 30, |
(In thousands) |
2011 |
2010 |
2011 |
2010 |
Multi-family residential |
$ 61,038 |
$ 38,631 |
$ 161,518 |
$ 127,406 |
Commercial real estate |
4,050 |
6,015 |
7,062 |
33,367 |
One-to-four family – mixed-use property |
5,907 |
7,657 |
18,552 |
22,459 |
One-to-four family – residential |
8,362 |
8,379 |
15,571 |
29,293 |
Co-operative apartments |
-- |
-- |
-- |
407 |
Construction |
80 |
2,231 |
1,283 |
6,211 |
Small Business Administration |
332 |
1,378 |
3,170 |
3,831 |
Taxi Medallion |
-- |
4,075 |
26,234 |
52,852 |
Commercial business and other |
26,158 |
11,344 |
49,875 |
44,749 |
Total |
$ 105,927 |
$ 79,710 |
$ 283,265 |
$ 320,575 |
The Bank continues to maintain conservative underwriting
standards that include, among other things, a loan-to-value ratio
of 75% or less and a debt coverage ratio of at least 125%.
Multi-family residential, commercial real estate and one-to-four
family mixed-use property mortgage loans originated during the
third quarter of 2011 had an average loan-to-value ratio of 42.8%
and an average debt coverage ratio of 237%.
Non-accrual loans and charge-offs for impaired loans remain at
elevated levels, primarily due to the current economic environment.
The Bank reviews its delinquencies on a loan by loan basis working
with borrowers to help them meet their obligations and return them
back to current status. The Bank takes a proactive approach to
managing delinquent loans, including conducting site examinations
and encouraging borrowers to meet with a Bank representative. The
Bank has been developing short-term payment plans that enable
certain borrowers to bring their loans current. The Bank has people
experienced in loan workouts to manage the delinquent loans. The
Bank has also restructured certain problem loans by either:
reducing the interest rate until the next reset date, extending the
amortization period thereby lowering the monthly payments,
deferring a portion of the interest payment, or changing the loan
to interest only payments for a limited time period. At times,
certain problem loans have been restructured by combining more than
one of these options. These restructurings have not included a
reduction of principal balance. The Bank believes that
restructuring these loans in this manner will allow certain
borrowers to become and remain current on their loans. These
restructured loans are classified as troubled debt restructured
("TDR"). Loans which have been current for six consecutive months
at the time they are restructured as TDR remain on accrual status.
Loans which were delinquent at the time they are restructured as a
TDR are placed on non-accrual status until they have made timely
payments for six consecutive months. Loans that are restructured as
TDR but are not performing in accordance with the restructured
terms are excluded from the TDR table below, as they are placed on
non-accrual status and reported as non-performing loans.
The following table shows loans classified as TDR that are
performing according to their restructured terms at the periods
indicated:
(In thousands) |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
|
|
|
|
Multi-family residential |
$ 9,701 |
$ 9,711 |
$ 11,242 |
Commercial real estate |
2,424 |
2,430 |
2,448 |
One-to-four family - mixed-use property |
797 |
800 |
206 |
Construction |
8,508 |
23,431 |
-- |
Commercial business and other |
2,000 |
2,000 |
-- |
|
|
|
|
Total performing troubled debt
restructured |
$ 23,430 |
$ 38,372 |
$ 13,896 |
During the three months ended September 30, 2011, one
construction loan for $11.5 million, which was a performing TDR at
June 30, 2011, was reclassified to non-accrual status as it is no
longer performing in accordance with its modified terms. In
addition, payments of $3.5 million were received on performing
TDR.
Interest income on loans is recognized on the accrual basis. The
accrual of income on loans is discontinued when certain factors,
such as contractual delinquency of 90 days or more, indicate
reasonable doubt as to the timely collectability of such income.
Additionally, uncollected interest previously recognized on
non-accrual loans is reversed from interest income at the time the
loan is placed on non-accrual status. Loans in default 90 days or
more, as to their maturity date but not their payments, continue to
accrue interest as long as the borrower continues to remit monthly
payments.
The following table shows non-performing assets at the periods
indicated:
(In thousands) |
September 30, 2011 |
June 30, 2011 |
December 31, 2010 |
Loans 90 days or more past due and
still accruing: |
|
|
|
Multi-family residential |
$ -- |
$ -- |
$ 103 |
Commercial real estate |
423 |
330 |
3,328 |
Construction |
5,245 |
775 |
-- |
Commercial business and other |
-- |
-- |
6 |
Total |
5,668 |
1,105 |
3,437 |
|
|
|
|
Non-accrual loans: |
|
|
|
Multi-family residential |
27,846 |
35,540 |
35,633 |
Commercial real estate |
21,062 |
23,918 |
22,806 |
One-to-four family - mixed-use
property |
29,890 |
28,968 |
30,478 |
One-to-four family - residential |
10,673 |
10,186 |
10,695 |
Co-operative apartments |
152 |
133 |
-- |
Construction |
14,331 |
2,665 |
4,465 |
Small business administration |
613 |
803 |
1,159 |
Commercial business and other |
6,122 |
6,727 |
3,419 |
Total |
110,689 |
108,940 |
108,655 |
|
|
|
|
Total non-performing
loans |
116,357 |
110,045 |
112,092 |
|
|
|
|
Other non-performing
assets: |
|
|
|
Real estate acquired through foreclosure |
4,250 |
1,828 |
1,588 |
Investment securities |
2,538 |
3,654 |
5,134 |
Total |
6,788 |
5,482 |
6,722 |
|
|
|
|
Total non-performing
assets |
$ 123,145 |
$ 115,527 |
$ 118,814 |
Included in non-accrual loans at September 30, 2011 were seven
loans totaling $17.5 million which were restructured as TDR which
were not performing in accordance with their restructured terms.
Included in non-accrual loans at June 30, 2011 were six loans
totaling $6.1 million which were restructured as TDR which were not
performing in accordance with their restructured terms. Included in
non-accrual loans at December 31, 2010 were five loans totaling
$3.2 million which were restructured as TDR and not performing in
accordance with their restructured terms.
The Bank's non-performing assets totaled $123.1 million at
September 30, 2011, an increase of $7.6 million from $115.5 million
at June 30, 2011 and an increase of $4.3 million from $118.8
million at December 31, 2010. Total non-performing assets as a
percentage of total assets were 2.86% at September 30, 2011
compared to 2.67% at June 30, 2011 and 2.75% at December 31, 2010.
The ratio of allowance for loan losses to total non-performing
loans was 25% at September 30, 2011; 27% at June 30, 2011 and 25%
at December 31, 2010.
During the three months ended September 30, 2011, 40 loans
totaling $30.3 million were added to non-performing loans, 18 loans
totaling $7.3 million were returned to performing status, seven
loans totaling $1.7 million were paid in full, 18 loans totaling
$7.4 million were sold, eight loans totaling $2.5 million were
transferred to other real estate owned, and charge-offs of $5.0
million were recorded on non-performing loans. Included in the
additions to non-performing loans was one construction loan for
$11.5 million, which was a performing TDR at June 30, 2011, as it
is no longer performing in accordance with its modified terms.
While construction on this project is complete, there have been
delays in obtaining the certificate of occupancy. We anticipate the
borrower obtaining the certificate of occupancy and accepting
contracts on the units in the near term. The project is comprised
of two-family homes, with sufficient collateral value to repay the
loan. Also included in additions to non-performing loans were two
construction loans totaling $5.2 million which are 90 days past
maturity but continuing to make payments. These two loans are to
the same borrower. Construction on these multi-family properties is
complete, and the certificate of occupancy has been obtained on one
building. This building is currently occupied, and produces
sufficient cash flow to make the payments on both loans.
Non-performing investment securities include two pooled trust
preferred securities for which we are not receiving payments. At
September 30, 2011, these investment securities had a combined
amortized cost and market value of $8.3 million and $2.5 million,
respectively.
Performing loans delinquent 60 to 89 days were $14.3 million at
September 30, 2011, an increase of $1.8 million from $12.5 million
at June 30, 2011 and a decrease of $5.5 million from $19.8 million
at December 31, 2010. Performing loans delinquent 30 to 59 days
were $58.0 million at September 30, 2011, a decrease of $7.0
million from $65.0 million at June 30, 2011 and a decrease of $15.5
million from $73.5 million at December 31, 2010.
The Bank recorded net charge-offs for impaired loans of $4.8
million and $3.5 million during the three months ended September
30, 2011 and 2010, respectively, and net charge-offs for impaired
loans of $13.1 million and $7.9 million during the nine months
ended September 30, 2011 and 2010, respectively.
The following table shows net loan charge-offs (recoveries) for
the periods indicated:
|
Three months ended |
Nine months ended |
(In thousands) |
September 30, 2011 |
September 30, 2010 |
September 30, 2011 |
September 30, 2010 |
Multi-family residential |
$ 2,188 |
$ 1,808 |
$ 3,984 |
$ 4,042 |
Commercial real estate |
1,549 |
806 |
4,071 |
1,138 |
One-to-four family – mixed-use property |
808 |
758 |
1,288 |
1,583 |
One-to-four family – residential |
-- |
21 |
1,928 |
115 |
Construction |
-- |
-- |
703 |
862 |
Small Business Administration |
137 |
93 |
608 |
345 |
Commercial business and other |
73 |
22 |
514 |
(163) |
Total net loan charge-offs |
$ 4,755 |
$ 3,508 |
$ 13,096 |
$ 7,922 |
The Bank considers a loan impaired when, based upon current
information, we believe it is probable that we will be unable to
collect all amounts due, both principal and interest, according to
the original contractual terms of the loan. All non-accrual
loans are considered impaired. Impaired loans are measured
based on the present value of the expected future cash flows
discounted at the loan's effective interest rate or at the loan's
observable market price or the fair value of the collateral if the
loan is collateral dependent. The property value of impaired
mortgage loans are internally reviewed on a quarterly basis using
multiple valuation approaches in evaluating the underlying
collateral. These include obtaining a third party appraisal, an
income approach or a sales approach. When obtained, third party
appraisals are given the most weight. The income approach is used
for income producing properties, and uses current revenues less
operating expenses to determine the net cash flow of the property.
Once the net cash flow is determined, the value of the property is
calculated using an appropriate capitalization rate for the
property. The sales approach uses comparable sales prices in the
market. In the absence of a third party appraisal, greater reliance
is placed on the income approach to value the collateral. The loan
balance of impaired mortgage loans is then compared to the
property's updated fair value. The balance which exceeds fair value
is charged-off against the allowance for loan losses.
During the nine months ended September 30, 2011, mortgage-backed
securities increased $30.4 million, or 4.0%, to $784.5 million from
$754.1 million at December 31, 2010. The increase in
mortgage-backed securities during the nine months ended September
30, 2011 was primarily due to purchases of $105.7 million and the
$23.7 million improvement in fair value. These increases were
partially offset by principal repayments of $95.6 million and $1.6
million in OTTI charges. During the nine months ended September 30,
2011, other securities decreased $2.9 million, or 5.9%, to $47.2
million from $50.1 million at December 31, 2010. Other securities
primarily consists of securities issued by government agencies and
mutual or bond funds that invest in government and government
agency securities. During the nine months ended September 30,
2011, there were $16.9 million in purchases offset by maturities of
$7.5 million, calls of $8.0 million and a reduction in the fair
value of $3.9 million.
Total liabilities were $3,884.5 million at September 30, 2011, a
decrease of $50.2 million, or 1.3%, from $3,934.7 million at
December 31, 2010. During the nine months ended September 30, 2011,
due to depositors decreased $46.5 million, or 1.5%, to $3,116.8
million, as a result of a $75.9 million decrease in core deposits
partially offset by a $29.4 million increase in certificates of
deposit. Borrowed funds decreased $10.0 million during the nine
months ended September 30, 2011.
Total stockholders' equity increased $28.9 million, or 7.4%, to
$419.0 million at September 30, 2011 from $390.0 million at
December 31, 2010. Stockholders' equity was increased by net income
of $27.2 million for the nine months ended September 30, 2011, an
increase in other comprehensive income of $12.2 million primarily
due to an increase in the fair value of the securities portfolio,
the net issuance of 266,755 common shares during the nine months
ended September 30, 2011 upon vesting of restricted stock awards,
the exercise of stock options and the annual funding of certain
employee retirement plans through the release of common shares from
the Employee Benefit Trust. These increases were partially offset
by the declaration and payment of dividends on the Company's common
stock of $12.0 million and the purchase of 362,050 treasury shares
at a cost of $4.1 million. Book value per common share was $13.45
at September 30, 2011 compared to $12.48 at December 31, 2010.
Tangible book value per common share was $12.92 at September 30,
2011 compared to $11.95 at December 31, 2010.
During the third quarter of 2011, the Company completed its
previously outstanding stock repurchase program by repurchasing
362,050 shares of the Company's common stock at an average cost of
$11.41 per share. On September 28, 2011, the Company announced the
authorization of a new stock repurchase plan which authorizes the
purchase of up to 1,000,000 shares of its common stock. At
September 30, 2011, 1,000,000 shares remain to be repurchased under
the current stock repurchase program.
Reconciliation of GAAP and Core Earnings
Although core earnings are not a measure of performance
calculated in accordance with GAAP, the Company believes that its
core earnings are an important indication of performance through
ongoing operations. The Company believes that core earnings are
useful to management and investors in evaluating its ongoing
operating performance, and in comparing its performance with other
companies in the banking industry, particularly those that do not
carry financial assets and financial liabilities at fair value.
Core earnings should not be considered in isolation or as a
substitute for GAAP earnings. During the periods presented, the
Company calculated core earnings by adding back or subtracting, net
of tax, the net gain or loss recorded on financial assets and
financial liabilities carried at fair value, OTTI charges, net
gains/losses on the sale of securities, and the income or expense
of certain non-recurring items listed below.
|
Three months ended |
Nine months ended |
|
September 30, 2011 |
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
September 30, 2010 |
|
|
|
|
|
|
GAAP income before income taxes |
$ 16,906 |
$ 15,154 |
$ 15,065 |
$ 44,982 |
$ 40,848 |
|
|
|
|
|
|
Net (gain) loss from fair value
adjustments |
(2,085) |
20 |
165 |
(1,265) |
154 |
Other-than-temporary impairment charges |
652 |
550 |
-- |
1,578 |
1,538 |
Net gain on sale of securities |
-- |
(39) |
-- |
-- |
(62) |
Partial recovery of WorldCom Inc. |
-- |
-- |
-- |
-- |
(164) |
|
|
|
|
|
|
Core income before taxes |
15,473 |
15,685 |
15,230 |
45,295 |
42,314 |
|
|
|
|
|
|
Provision for income taxes for core
income |
6,125 |
6,246 |
6,063 |
17,943 |
16,698 |
|
|
|
|
|
|
Core net income |
$ 9,348 |
$ 9,439 |
$ 9,167 |
$ 27,352 |
$ 25,616 |
|
|
|
|
|
|
GAAP diluted earnings per common share |
$ 0.33 |
$ 0.48 |
$ 0.29 |
$ 0.88 |
$ 1.00 |
|
|
|
|
|
|
Net (gain) loss from fair value
adjustments |
(0.03) |
-- |
-- |
(0.02) |
-- |
Other-than-temporary impairment charges |
0.01 |
0.01 |
-- |
0.03 |
0.03 |
Net gain on sale of securities, net of
tax |
-- |
-- |
-- |
-- |
-- |
Partial recovery of WorldCom, net of tax |
-- |
-- |
-- |
-- |
-- |
New York State Legislative tax
change |
-- |
(0.18) |
-- |
-- |
(0.18) |
Core diluted earnings per common share* |
$ 0.30 |
$ 0.31 |
$ 0.30 |
$ 0.89 |
$ 0.84 |
|
|
|
|
|
|
* Core diluted earnings per
common share may not foot due to rounding. |
|
|
|
Reconciliation of GAAP and Core Earnings before
Provision for Loan Losses and Income Taxes
Although core earnings before the provision for loan losses and
income taxes are not a measure of performance calculated in
accordance with GAAP, the Company believes this measure of earnings
is an important indication of earnings through ongoing operations
that are available to cover possible loan losses and OTTI charges.
The Company believes this earnings measure is useful to management
and investors in evaluating its ongoing operating performance.
During the periods presented, the Company calculated this earnings
measure by adjusting GAAP income before income taxes by adding back
the provision for loan losses and adding back or subtracting the
net gain or loss recorded on financial assets and financial
liabilities carried at fair value, OTTI charges, net gains/losses
on the sale of securities, and the income or expense of certain
non-recurring items listed below.
|
Three months ended |
Nine months ended |
|
September 30, 2011 |
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
September 30, 2010 |
|
|
|
(in thousands) |
|
|
|
|
|
|
|
|
GAAP income before income taxes |
$ 16,906 |
$ 15,154 |
$ 15,065 |
$ 44,982 |
$ 40,848 |
|
|
|
|
|
|
Provision for loan losses |
5,000 |
5,000 |
5,000 |
15,000 |
15,000 |
Net (gain) loss from fair value
adjustments |
(2,085) |
20 |
165 |
(1,265) |
154 |
Other-than-temporary impairment charges |
652 |
550 |
-- |
1,578 |
1,538 |
Net gain on sale of securities |
-- |
(39) |
-- |
-- |
(62) |
Partial recovery of WorldCom Inc. |
-- |
-- |
-- |
-- |
(164) |
|
|
|
|
|
|
|
|
|
|
|
|
Core net income before the provision for loan
losses and income taxes |
$ 20,473 |
$ 20,685 |
$ 20,230 |
$ 60,295 |
$ 57,314 |
About Flushing Financial Corporation
Flushing Financial Corporation is the parent holding company for
Flushing Savings Bank, FSB (the "Bank"), a federally chartered
stock savings bank insured by the FDIC. Flushing Bank is a trade
name of Flushing Savings Bank, FSB. The Bank serves consumers and
businesses by offering a full complement of deposit, loan and cash
management services through its sixteen banking offices located in
Queens, Brooklyn, Manhattan and Nassau County. The Bank also
operates an online banking division, iGObanking.com®, which offers
competitively priced deposit products to consumers nationwide.
Flushing Commercial Bank, a wholly-owned subsidiary, provides
banking services to public entities including counties, cities,
towns, villages, school districts, libraries, fire districts and
the various courts throughout the metropolitan area.
Additional information on Flushing Financial Corporation may be
obtained by visiting the Company's website at
http://www.flushingbank.com.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this Press
Release relating to plans, strategies, economic performance and
trends, projections of results of specific activities or
investments and other statements that are not descriptions of
historical facts may be forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking information is
inherently subject to risks and uncertainties, and actual results
could differ materially from those currently anticipated due to a
number of factors, which include, but are not limited to, risk
factors discussed in the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 2010 and in other documents
filed by the Company with the Securities and Exchange Commission
from time to time. Forward-looking statements may be identified by
terms such as "may", "will", "should", "could", "expects", "plans",
"intends", "anticipates", "believes", "estimates", "predicts",
"forecasts", "potential" or "continue" or similar terms or the
negative of these terms. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. The Company has no obligation to update these
forward-looking statements.
- Statistical Tables Follow
-
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION |
(Dollars in thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
|
September 30, 2011 |
December 31, 2010 |
ASSETS |
|
|
Cash and due from banks |
$ 50,902 |
$ 47,789 |
Securities available for sale: |
|
|
Mortgage-backed securities |
784,524 |
754,077 |
Other securities |
47,166 |
50,112 |
Loans: |
|
|
Multi-family residential |
1,333,806 |
1,252,176 |
Commercial real estate |
604,781 |
662,794 |
One-to-four family ― mixed-use
property |
705,936 |
728,810 |
One-to-four family ― residential |
222,552 |
241,376 |
Co-operative apartments |
5,562 |
6,215 |
Construction |
51,522 |
75,519 |
Small Business Administration |
14,460 |
17,511 |
Taxi medallion |
68,570 |
88,264 |
Commercial business and other |
206,560 |
187,161 |
Net unamortized premiums and unearned
loan fees |
15,312 |
16,503 |
Allowance for loan losses |
(29,603) |
(27,699) |
Net loans |
3,199,458 |
3,248,630 |
Interest and dividends receivable |
18,485 |
19,475 |
Bank premises and equipment, net |
23,193 |
23,041 |
Federal Home Loan Bank of New York stock |
30,827 |
31,606 |
Bank owned life insurance |
78,196 |
76,129 |
Goodwill |
16,127 |
16,127 |
Core deposit intangible |
1,054 |
1,405 |
Other assets |
53,604 |
56,354 |
Total assets |
$ 4,303,536 |
$ 4,324,745 |
|
|
|
LIABILITIES |
|
|
Due to depositors: |
|
|
Non-interest bearing |
$ 111,175 |
$ 96,198 |
Interest-bearing: |
|
|
Certificate of deposit accounts |
1,549,958 |
1,520,572 |
Savings accounts |
363,025 |
388,512 |
Money market accounts |
230,608 |
371,998 |
NOW accounts |
862,047 |
786,015 |
Total interest-bearing deposits |
3,005,638 |
3,067,097 |
Mortgagors' escrow deposits |
33,254 |
27,315 |
Borrowed funds |
698,659 |
708,683 |
Other liabilities |
35,818 |
35,407 |
Total liabilities |
3,884,544 |
3,934,700 |
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
Preferred stock (5,000,000 shares authorized;
none issued) |
-- |
-- |
Common stock ($0.01 par value; 100,000,000
shares authorized; 31,530,595 shares and 31,255,934 shares issued
at September 30, 2011 and December 31, 2010, respectively;
31,160,639 shares and 31,255,934 shares outstanding at September
30, 2011 and December 31, 2010, respectively) |
315 |
313 |
Additional paid-in capital |
195,138 |
189,348 |
Treasury stock (369,956 shares at September
30, 2011 and none at December 31, 2010) |
(4,235) |
-- |
Retained earnings |
219,282 |
204,128 |
Accumulated other comprehensive income
(loss), net of taxes |
8,492 |
(3,744) |
Total stockholders' equity |
418,992 |
390,045 |
|
|
|
Total liabilities and stockholders'
equity |
$ 4,303,536 |
$ 4,324,745 |
|
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF INCOME |
(Dollars in thousands, except
per share data) |
(Unaudited) |
|
|
|
|
|
|
For the three months
ended September 30, |
For the nine months ended
September 30, |
|
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Interest and dividend
income |
|
|
|
|
Interest and fees on loans |
$ 47,767 |
$ 50,098 |
$ 144,578 |
$ 148,775 |
Interest and dividends on securities: |
|
|
|
|
Interest |
8,325 |
7,955 |
24,581 |
23,600 |
Dividends |
202 |
207 |
606 |
610 |
Other interest income |
35 |
11 |
89 |
33 |
Total interest and dividend
income |
56,329 |
58,271 |
169,854 |
173,018 |
|
|
|
|
|
Interest expense |
|
|
|
|
Deposits |
12,266 |
13,315 |
36,954 |
40,641 |
Other interest expense |
6,962 |
9,095 |
21,849 |
29,571 |
Total interest expense |
19,228 |
22,410 |
58,803 |
70,212 |
|
|
|
|
|
Net interest income |
37,101 |
35,861 |
111,051 |
102,806 |
Provision for loan losses |
5,000 |
5,000 |
15,000 |
15,000 |
Net interest income after provision
for loan losses |
32,101 |
30,861 |
96,051 |
87,806 |
|
|
|
|
|
Non-interest income
(loss) |
|
|
|
|
Other-than-temporary impairment ("OTTI")
charge |
(4,816) |
(3,319) |
(8,999) |
(6,136) |
Less: Non-credit portion of OTTI charge
recorded in Other Comprehensive Income, before taxes |
4,164 |
2,769 |
7,421 |
4,598 |
Net OTTI charge recognized in earnings |
(652) |
(550) |
(1,578) |
(1,538) |
Loan fee income |
538 |
433 |
1,487 |
1,283 |
Banking services fee income |
430 |
437 |
1,279 |
1,350 |
Net gain (loss) on sale of loans |
493 |
(6) |
493 |
17 |
Net gain from sale of securities |
-- |
39 |
-- |
62 |
Net gain (loss) from fair value
adjustments |
2,085 |
(20) |
1,265 |
(154) |
Federal Home Loan Bank of New York stock
dividends |
338 |
444 |
1,180 |
1,508 |
Bank owned life insurance |
705 |
702 |
2,067 |
2,040 |
Other income |
358 |
470 |
1,108 |
1,676 |
Total non-interest income |
4,295 |
1,949 |
7,301 |
6,244 |
|
|
|
|
|
Non-interest
expense |
|
|
|
|
Salaries and employee benefits |
9,715 |
8,754 |
29,424 |
26,126 |
Occupancy and equipment |
1,971 |
1,850 |
5,712 |
5,315 |
Professional services |
1,697 |
1,535 |
4,933 |
5,059 |
FDIC deposit insurance |
1,030 |
1,200 |
3,409 |
3,723 |
Data processing |
1,139 |
1,106 |
3,325 |
3,274 |
Depreciation and amortization |
792 |
692 |
2,337 |
2,094 |
Other real estate owned / foreclosure
expense |
770 |
389 |
1,638 |
769 |
Other operating expenses |
2,376 |
2,130 |
7,592 |
6,842 |
Total non-interest expense |
19,490 |
17,656 |
58,370 |
53,202 |
|
|
|
|
|
Income before income
taxes |
16,906 |
15,154 |
44,982 |
40,848 |
|
|
|
|
|
Provision for income
taxes |
|
|
|
|
Federal |
5,099 |
7,489 |
13,575 |
15,189 |
State and local |
1,657 |
(6,963) |
4,230 |
(4,627) |
Total taxes |
6,756 |
526 |
17,805 |
10,562 |
|
|
|
|
|
Net income |
$ 10,150 |
$ 14,628 |
$ 27,177 |
$ 30,286 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ 0.33 |
$ 0.48 |
$ 0.89 |
$ 1.00 |
Diluted earnings per common share |
$ 0.33 |
$ 0.48 |
$ 0.88 |
$ 1.00 |
Dividends per common share |
$ 0.13 |
$ 0.13 |
$ 0.39 |
$ 0.39 |
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
SELECTED CONSOLIDATED
FINANCIAL DATA |
(Dollars in thousands, except
share data) |
(Unaudited) |
|
|
|
|
|
|
At or for the three
months ended September 30, |
At or for the nine months
ended September 30, |
|
2011 |
2010 |
2011 |
2010 |
Per Share Data |
|
|
|
|
Basic earnings per share |
$ 0.33 |
$ 0.48 |
$ 0.89 |
$ 1.00 |
Diluted earnings per share |
$ 0.33 |
$ 0.48 |
$ 0.88 |
$ 1.00 |
Average number of shares outstanding
for: |
|
|
|
|
Basic earnings per common share
computation |
30,678,560 |
30,359,226 |
30,707,433 |
30,323,223 |
Diluted earnings per common share
computation |
30,692,762 |
30,377,761 |
30,744,499 |
30,352,123 |
Book value per common share (1) |
$13.45 |
$12.60 |
$13.45 |
$12.60 |
Tangible book value per common share (2) |
$12.92 |
$12.07 |
$12.92 |
$12.07 |
|
|
|
|
|
Average Balances |
|
|
|
|
Total loans, net |
$ 3,205,627 |
$ 3,257,821 |
$ 3,224,901 |
$ 3,234,948 |
Total interest-earning assets |
4,117,069 |
4,029,012 |
4,101,233 |
3,986,560 |
Total assets |
4,340,349 |
4,243,428 |
4,319,135 |
4,202,472 |
Total due to depositors |
3,030,132 |
2,899,226 |
3,054,918 |
2,782,479 |
Total interest-bearing liabilities |
3,790,226 |
3,748,814 |
3,787,168 |
3,718,554 |
Stockholders' equity |
408,659 |
380,211 |
398,898 |
370,738 |
Common stockholders' equity |
408,659 |
380,211 |
398,898 |
370,738 |
|
|
|
|
|
Performance Ratios
(3) |
|
|
|
|
Return on average assets |
0.94% |
1.38% |
0.84% |
0.96% |
Return on average equity |
9.93 |
15.39 |
9.08 |
10.89 |
Yield on average interest-earning assets |
5.47 |
5.79 |
5.52 |
5.79 |
Cost of average interest-bearing
liabilities |
2.03 |
2.39 |
2.07 |
2.52 |
Interest rate spread during period |
3.44 |
3.40 |
3.45 |
3.27 |
Net interest margin |
3.60 |
3.56 |
3.61 |
3.44 |
Non-interest expense to average assets |
1.80 |
1.66 |
1.80 |
1.69 |
Efficiency ratio (4) |
48.27 |
46.00 |
49.16 |
47.99 |
Average interest-earning assets to average
interest-bearing liabilities |
1.09 X |
1.07 X |
1.08 X |
1.07 X |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated by dividing
common stockholders' equity of $419.0 million and $393.5 million at
September 30, 2011 and 2010, respectively, by 31,160,639 and
31,237,874 shares outstanding at September 30, 2011 and 2010,
respectively. Common stockholders' equity is total stockholders'
equity less the liquidation preference value of any preferred
shares outstanding. |
(2) Calculated by dividing
tangible common stockholders' equity of $402.7 million and $376.9
million at September 30, 2011 and 2010, respectively, by 31,160,639
and 31,237,874 shares outstanding at September 30, 2011 and 2010,
respectively. Tangible common stockholders' equity is total
stockholders' equity less intangible assets (goodwill and core
deposit intangible, net of deferred taxes). |
(3) Ratios for the three and nine
months ended September 30, 2011 and 2010 are presented on an
annualized basis. |
(4) Calculated by dividing
non-interest expense (excluding OREO expense) by the total of net
interest income and non-interest income (excluding net gain/loss
from fair value adjustments, OTTI charges, net gains on the sale of
securities and certain non-recurring items). |
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
SELECTED CONSOLIDATED
FINANCIAL DATA |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
At or for the nine months ended
September 30, 2011 |
At or for the year ended December 31,
2010 |
|
|
|
Selected Financial Ratios and
Other Data |
|
|
|
|
|
Regulatory capital ratios (for Flushing
Savings Bank only): |
|
|
Core capital (well capitalized =
5%) |
9.51% |
9.18% |
Tier 1 risk-based capital (well
capitalized = 6%) |
14.24 |
13.07 |
Total risk-based capital (well
capitalized = 10%) |
15.28 |
13.98 |
|
|
|
Capital ratios: |
|
|
Average equity to average
assets |
9.24% |
8.89% |
Equity to total assets |
9.74 |
9.02 |
Tangible common equity to tangible
assets |
9.39 |
8.67 |
|
|
|
Asset quality: |
|
|
Non-performing loans |
$ 116,357 |
$ 112,092 |
Non-performing assets |
123,145 |
118,814 |
Net charge-offs |
13,096 |
13,625 |
|
|
|
Asset quality ratios: |
|
|
Non-performing loans to gross
loans |
3.62% |
3.44% |
Non-performing assets to total
assets |
2.86 |
2.75 |
Allowance for loan losses to gross
loans |
0.92 |
0.85 |
Allowance for loan losses to
non-performing assets |
24.04 |
23.31 |
Allowance for loan losses to
non-performing loans |
25.44 |
24.71 |
|
|
|
Full-service customer facilities |
16 |
15 |
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
NET INTEREST
MARGIN |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
For the three months
ended September 30, |
|
2011 |
2010 |
|
Average Balance |
Interest |
Yield/ Cost |
Average Balance |
Interest |
Yield/ Cost |
Assets |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Mortgage loans, net (1) |
$ 2,923,686 |
44,082 |
6.03% |
$ 2,965,095 |
46,075 |
6.22% |
Other loans, net (1) |
281,941 |
3,685 |
5.23 |
292,726 |
4,023 |
5.50 |
Total loans, net |
3,205,627 |
47,767 |
5.96 |
3,257,821 |
50,098 |
6.15 |
Mortgage-backed securities |
777,186 |
8,036 |
4.14 |
693,652 |
7,783 |
4.49 |
Other securities |
59,868 |
491 |
3.28 |
46,026 |
379 |
3.29 |
Total securities |
837,054 |
8,527 |
4.07 |
739,678 |
8,162 |
4.41 |
Interest-earning deposits and
federal funds sold |
74,388 |
35 |
0.19 |
31,513 |
11 |
0.14 |
Total interest-earning assets |
4,117,069 |
56,329 |
5.47 |
4,029,012 |
58,271 |
5.79 |
Other assets |
223,280 |
|
|
214,416 |
|
|
Total assets |
$ 4,340,349 |
|
|
$ 4,243,428 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings accounts |
$ 368,026 |
560 |
0.61 |
411,546 |
853 |
0.83 |
NOW accounts |
833,403 |
1,600 |
0.77 |
746,183 |
1,957 |
1.05 |
Money market accounts |
239,270 |
309 |
0.52 |
392,715 |
947 |
0.96 |
Certificate of deposit
accounts |
1,589,433 |
9,783 |
2.46 |
1,348,782 |
9,543 |
2.83 |
Total due to depositors |
3,030,132 |
12,252 |
1.62 |
2,899,226 |
13,300 |
1.83 |
Mortgagors' escrow accounts |
33,358 |
14 |
0.17 |
34,360 |
15 |
0.17 |
Total deposits |
3,063,490 |
12,266 |
1.60 |
2,933,586 |
13,315 |
1.82 |
Borrowed funds |
726,736 |
6,962 |
3.83 |
815,228 |
9,095 |
4.46 |
Total interest-bearing
liabilities |
3,790,226 |
19,228 |
2.03 |
3,748,814 |
22,410 |
2.39 |
Non interest-bearing deposits |
110,800 |
|
|
88,055 |
|
|
Other liabilities |
30,664 |
|
|
26,348 |
|
|
Total liabilities |
3,931,690 |
|
|
3,863,217 |
|
|
Equity |
408,659 |
|
|
380,211 |
|
|
Total liabilities and equity |
$ 4,340,349 |
|
|
$ 4,243,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / net interest rate
spread |
|
$ 37,101 |
3.44% |
|
$ 35,861 |
3.40% |
|
|
|
|
|
|
|
Net interest-earning assets / net
interest margin |
$ 326,843 |
|
3.60% |
$ 280,198 |
|
3.56% |
|
|
|
|
|
|
|
Ratio of interest-earning assets to
interest-bearing liabilities |
|
|
1.09 X |
|
|
1.07 X |
|
|
|
|
|
|
|
(1) Loan
interest income includes loan fee income (which includes net
amortization of deferred fees and costs, late charges and
prepayment penalties) of approximately $0.4 million for each of the
three months ended September 30, 2011 and 2010. |
|
|
|
|
|
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
NET INTEREST
MARGIN |
(Dollars in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
For the nine months ended
September 30, |
|
2011 |
2010 |
|
Average Balance |
Interest |
Yield/ Cost |
Average Balance |
Interest |
Yield/ Cost |
Assets |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Mortgage loans, net (1) |
$ 2,932,399 |
133,326 |
6.06% |
$ 2,955,810 |
137,250 |
6.19% |
Other loans, net (1) |
292,502 |
11,252 |
5.13 |
279,138 |
11,525 |
5.51 |
Total loans, net |
3,224,901 |
144,578 |
5.98 |
3,234,948 |
148,775 |
6.13 |
Mortgage-backed securities |
752,362 |
23,740 |
4.21 |
661,627 |
22,733 |
4.58 |
Other securities |
59,524 |
1,447 |
3.24 |
58,419 |
1,477 |
3.37 |
Total securities |
811,886 |
25,187 |
4.14 |
720,046 |
24,210 |
4.48 |
Interest-earning deposits and
federal funds sold |
64,446 |
89 |
0.18 |
31,566 |
33 |
0.14 |
Total interest-earning assets |
4,101,233 |
169,854 |
5.52 |
3,986,560 |
173,018 |
5.79 |
Other assets |
217,902 |
|
|
215,912 |
|
|
Total assets |
$ 4,319,135 |
|
|
$ 4,202,472 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings accounts |
$ 373,676 |
1,732 |
0.62 |
417,528 |
2,643 |
0.84 |
NOW accounts |
823,074 |
5,100 |
0.83 |
649,022 |
5,642 |
1.16 |
Money market accounts |
300,956 |
1,118 |
0.50 |
399,535 |
2,905 |
0.97 |
Certificate of deposit
accounts |
1,557,212 |
28,966 |
2.48 |
1,316,394 |
29,408 |
2.98 |
Total due to depositors |
3,054,918 |
36,916 |
1.61 |
2,782,479 |
40,598 |
1.95 |
Mortgagors' escrow accounts |
38,958 |
38 |
0.13 |
38,546 |
43 |
0.15 |
Total deposits |
3,093,876 |
36,954 |
1.59 |
2,821,025 |
40,641 |
1.92 |
Borrowed funds |
693,292 |
21,849 |
4.20 |
897,529 |
29,571 |
4.39 |
Total interest-bearing
liabilities |
3,787,168 |
58,803 |
2.07 |
3,718,554 |
70,212 |
2.52 |
Non interest-bearing deposits |
105,405 |
|
|
86,300 |
|
|
Other liabilities |
27,664 |
|
|
26,880 |
|
|
Total liabilities |
3,920,237 |
|
|
3,831,734 |
|
|
Equity |
398,898 |
|
|
370,738 |
|
|
Total liabilities and equity |
$ 4,319,135 |
|
|
$ 4,202,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / net interest rate
spread |
|
$ 111,051 |
3.45% |
|
$ 102,806 |
3.27% |
|
|
|
|
|
|
|
Net interest-earning assets / net
interest margin |
$ 314,065 |
|
3.61% |
$ 268,006 |
|
3.44% |
|
|
|
|
|
|
|
Ratio of interest-earning assets to
interest-bearing liabilities |
|
|
1.08 X |
|
|
1.07 X |
|
|
|
|
|
|
|
(1) Loan interest income
includes loan fee income (which includes net amortization of
deferred fees and costs, late charges and prepayment penalties) of
approximately $1.2 million and $0.9 million for the nine months
ended September 30, 2011 and 2010, respectively. |
CONTACT: David W. Fry
Executive Vice President, Treasurer and
Chief Financial Officer
Flushing Financial Corporation
(718) 961-5400
Flushing Financial (NASDAQ:FFIC)
過去 株価チャート
から 6 2024 まで 7 2024
Flushing Financial (NASDAQ:FFIC)
過去 株価チャート
から 7 2023 まで 7 2024