Full Year 2011
- Core diluted earnings per common share were $1.15, an increase
of $0.01 from the year ended December 31, 2010.
- GAAP diluted earnings per common share were $1.15, a decrease
of $0.13 from the year ended December 31, 2010. The year ended
December 31, 2010 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 for 2011 increased $0.05, or
4%.
- The net interest margin was 3.61%, an 18 basis point increase
from the year ended December 31, 2010.
- Record net interest income of $147.8 million for the year ended
December 31, 2011.
- Record core pre provision pre tax ("PPPT") earnings of $79.9
million, a $2.2 million, or a 2.9% increase from the year ended
December 31, 2010. (See "Reconciliation of GAAP and Core Earnings
before Provision for Loan Losses and Income Taxes").
- Net charge-offs for the year ended December 31, 2011 were 0.59%
of average loans.
- The provision for loan losses totaled $21.5 million for the
year ended December 31, 2011.
- Other-than-temporary impairment ("OTTI") charges totaled $1.6
million on five private issue collateralized mortgage obligations
("CMOs").
Fourth Quarter 2011
- Core diluted earnings per common share were $0.26, a decrease
of $0.03 from the comparable prior year period, and a decrease of
$0.04 from the three months ended September 30, 2011.
- GAAP diluted earnings per common share were $0.27, a decrease
of $0.01 from the comparable prior year period, and a decrease of
$0.06 from the three months ended September 30, 2011.
- The net interest margin was 3.62%, a 21 basis point increase
from the comparable prior year period, and an increase of two basis
points from the three months ended September 30, 2011.
- Loan originations increased $32.0 million, or 33.3% from the
three months ended December 31, 2010 and increased $22.0 million,
or 20.8% from the three months ended September 30, 2011.
- Net charge-offs for the quarter ended December 31, 2011 were
0.72% of average loans.
- Allowance for loan losses as a percentage of gross loans
increased to 0.94% at December 31, 2011.
- The provision for loan losses in the fourth quarter of 2011
totaled $6.5 million.
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 twelve
months ended December 31, 2011.
John R. Buran, President and Chief Executive Officer, stated:
"We are pleased to report 2011 was another strong year for our
Company. Core net income was a record $35.1 million, or $1.15 per
diluted common share. Net interest income was a record $147.8
million, as the net interest margin increased 18 basis points to
3.61% for the year ended December 31, 2011 from 3.43% for the year
ended December 31, 2010.
"We achieved this increase on our net interest margin by
focusing on reducing our funding costs while maintaining asset
yields. We reduced our total cost of interest-bearing liabilities
by 34 basis points to 1.92% for the three months ended December 31,
2011 from 2.26% for the comparable prior year period. The cost of
due to depositors decreased 21 basis points to 1.53% for the three
months ended December 31, 2011 from 1.73% 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.
"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 business deposits increased $19.4 million for
the three months ended December 31, 2011 from $53.0 million for the
comparable prior year period. Total non-interest bearing demand
deposits increased $18.8 million for the three months ended
December 31, 2011 from $94.0 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 December 31, 2011, we had $66.6 million in this
new checking account product. We believe this product will provide
an additional source of lower costing funding for the Company.
"Loan originations increased to $127.9 million for the three
months ended December 31, 2011 from $105.9 million for the three
months ended September 30, 2011. We continue to see an increase in
loan demand as loan applications in process totaled $194.4 million
at December 31, 2011. 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 fourth
quarter of 2011, the total originations of multi-family mortgage
loans increased $43.7 million to $87.5 million from the comparable
prior year period, while the combined total of commercial real
estate and construction loan originations was reduced to $0.5
million for the fourth quarter of 2011 from $4.6 million for the
comparable prior year period. As a result, total net loans
decreased $0.9 million from September 30, 2011 to $3,198.5 million
at December 31, 2011.
"Loans delinquent over 30 days totaled $186.8 million at
December 31, 2011, a decrease of $1.0 million from September 30,
2011, and a decrease of $25.8 million from December 31, 2010.
Non-accrual loans increased $0.4 million in the fourth quarter of
2011 from September 30, 2011. However, loans classified Substandard
decreased $5.8 million during the same period.
"Net charge-offs for the fourth quarter of 2011 totaled $5.8
million, an increase of $1.0 million from the third quarter of
2011. During the fourth quarter of 2011, we moved to more
aggressively sell delinquent loans and other real estate owned. We
sold 16 non-performing loans, with net sales proceeds of $10.0
million, or 89 cents on the dollar, and 12 foreclosed properties
for $3.3 million, during the three months ended December 31, 2011.
For the year ended December 31, 2011, we realized approximately 85%
of the appraised value upon sale of properties acquired via
foreclosure. As a result, we have reduced what we consider to be
the fair value of the collateral underlying non-performing loans to
85% of the appraised value from 90% of the appraised value. This
reduction in our fair value assumption resulted in recording an
additional $1.6 million in charge-offs during the three months
ended December 31, 2011. The current loan-to-value ratio for our
non-performing loans collateralized by real estate was 58.0% at
December 31, 2011. When we have obtained properties through
foreclosure, we have been able to quickly sell the properties at
amounts that approximate book value. At December 31, 2011, we held
properties obtained via foreclosure with a total book value of $3.2
million. The provision for loan losses recorded in the fourth
quarter of 2011 was $6.5 million, an increase of $1.5 million from
that recorded in the third quarter of 2011.
"At December 31, 2011, the Bank continues to be well-capitalized
under regulatory requirements, with Core, Tier 1 risk-based and
Total risk-based capital ratios of 9.63%, 14.26% and 15.32%,
respectively."
Core earnings, which exclude the effects of net gains or losses
from fair value adjustments, other-than-temporary impairment
("OTTI") charges, net gains or losses from the sale of securities,
and certain non-recurring items, were $7.8 million for the three
months ended December 31, 2011, a decrease of $1.1 million, or
12.1%, from $8.9 million in the comparable prior year period. Core
diluted earnings per common share were $0.26 for the three months
ended December 31, 2011, a decrease of $0.03, or 10.3%, from the
comparable prior year period.
Core earnings for the twelve months ended December 31, 2011 were
$35.1 million, an increase of $0.7 million, or 1.9%, from $34.5
million for the comparable prior year period. Core diluted earnings
per common share were $1.15 for the twelve months ended December
31, 2011, an increase of $0.01 per common share, or 0.9%, from
$1.14 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 December 31,
2011
Net income for the three months ended December 31, 2011 was $8.2
million, a decrease of $0.4 million, or 4.4%, compared to $8.5
million for the three months ended December 31, 2010. Diluted
earnings per common share were $0.27 for the three months ended
December 31, 2011, a decrease of $0.01, or 3.6%, from $0.28 for the
three months ended December 31, 2010. Return on average equity was
7.9% for the three months ended December 31, 2011 compared to 8.7%
for the three months ended December 31, 2010. Return on average
assets was 0.8% for the both of the three month periods ended
December 31, 2011and 2010.
For the three months ended December 31, 2011, net interest
income was $36.7 million, an increase of $1.7 million, or 4.8%,
from $35.1 million for the three months ended December 31, 2010.
The increase in net interest income was attributable to a 22 basis
point increase in the net-interest spread to 3.47% for the three
months ended December 31, 2011 from 3.25% for the three months
ended December 31, 2010. The yield on interest-earning assets
decreased 12 basis points to 5.39% for the three months ended
December 31, 2011 from 5.51% for the three months ended December
31, 2010. However, this was more than offset by a decline in the
cost of funds of 34 basis points to 1.92% for the three months
ended December 31, 2011 from 2.26% for the comparable prior year
period. The net interest margin improved 21 basis points to 3.62%
for the three months ended December 31, 2011 from 3.41% for the
three months ended December 31, 2010. Excluding prepayment penalty
income, the net interest margin would have increased 19 basis
points to 3.56% for the three months ended December 31, 2011 from
3.37% for the three months ended December 31, 2010.
The 12 basis point decline in the yield of interest-earning
assets was primarily due to a 14 basis point reduction in the yield
of the loan portfolio to 5.85% for the three months ended December
31, 2011 from 5.99% for the three months ended December 31, 2010,
combined with a 31 basis point decline in the yield on total
securities to 3.89% for the three months ended December 31, 2011
from 4.20% for the comparable prior year period. In addition, the
yield of interest-earning assets was negatively impacted by a $41.1
million decrease in the average balance of the higher yielding loan
portfolio for the three months ended December 31, 2011 and a $47.7
million increase in the average balances of the lower yielding
securities portfolio for the three months ended December 31, 2011
which has a lower yield than the yield of total interest-earning
assets. These factors that reduced the yield were partially offset
by a $57.5 million decrease in the average balance of lower
yielding interest-earning deposits to $54.9 million for the three
months ended December 31, 2011 from $112.4 million for the
comparable prior year period. The 14 basis point decrease in the
loan portfolio was primarily due to the decline in the rates earned
on new loan originations. The 31 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 11 basis points to 5.95%
for the three months ended December 31, 2011 from 6.06% for the
three months ended December 31, 2010. The yield on the mortgage
loan portfolio, excluding prepayment penalty income, decreased 13
basis points to 5.87% for the three months ended December 31, 2011
from 6.00% for the three months ended December 31, 2010.
The 34 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 the average
balance of higher costing borrowed funds. The cost of certificates
of deposit, money market accounts, savings accounts and NOW
accounts decreased 22 basis points, 49 basis points, 29 basis
points and 27 basis points, respectively, for the three months
ended December 31, 2011 from the comparable prior year period. This
resulted in a decrease in the cost of due to depositors of 20 basis
points to 1.53% for the three months ended December 31, 2011 from
1.73% for the three months ended December 31, 2010. The cost of
borrowed funds decreased 75 basis points from the comparable prior
year period to 3.71% for the three months ended December 31, 2011,
while the average balance decreased $71.4 million to $693.8 million
for the three months ended December 31, 2011 from $765.2 million
for the comparable prior year period.
The net interest margin for the three months ended December 31,
2011 increased two basis points to 3.62% from 3.60% for the three
months ended September 30, 2011. The yield on interest-earning
assets decreased eight basis points during the fourth quarter of
2011 while the cost of interest-bearing liabilities decreased 11
basis points to 1.92%. Excluding prepayment penalty income, the net
interest margin increased two basis points to 3.56% for the three
months ended December 31, 2011 from 3.54% for the three months
ended September 30, 2011.
A provision for loan losses of $6.5 million was recorded for the
three months ended December 31, 2011; an increase of $0.5 million
from $6.0 million that was recorded for the three months ended
December 31, 2010. During the three months ended December 31, 2011,
non-performing loans increased $1.1 million to $117.4 million from
$116.4 million at September 30, 2011. Net charge-offs for the three
months ended December 31, 2011 totaled $5.8 million. The current
loan-to-value ratio for our non-performing loans collateralized by
real estate was 58.0% at December 31, 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 our
loan portfolio. 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 fourth quarter of 2011, management, as a result of
the regular quarterly analysis of the allowance for loans losses,
deemed it necessary to record a $6.5 million provision for possible
loan losses in the fourth quarter of 2011.
Non-interest income for the three months ended December 31, 2011
was $3.0 million, an increase of $0.9 million from $2.1 million for
the three months ended December 31, 2010. The increase in
non-interest income was primarily due to a $0.5 million increase in
net gains from fair value adjustments and a $0.5 million decrease
in OTTI charges recorded.
Non-interest expense was $19.4 million for the three months
ended December 31, 2011, an increase of $2.2 million, or 12.7%,
from $17.2 million for the three months ended December 31, 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 $0.2 million for the three months
ended December 31, 2011 compared to the three months ended December
31, 2010, while professional services and data processing increased
$0.5 million and $0.4 million, respectively. In addition, other
real estate owned/foreclosure expense and other operating expense
for the three months ended December 31, 2011 increased $0.4 million
and $0.6 million, respectively, compared to the three months ended
December 31, 2010. These increases were partially offset by a $0.2
million decrease in FDIC assessments during the three months ended
December 31, 2011 from the comparable prior year period. The
efficiency ratio was 49.2% for the three months ended December 31,
2011 compared to 45.6% for the three months ended December 31,
2010.
Earnings Summary - Twelve Months Ended December 31,
2011
Net income for the twelve months ended December 31, 2011 was
$35.3 million, a decrease of $3.5 million, or 9.0%, compared to
$38.8 million for the twelve months ended December 31, 2010.
Diluted earnings per common share were $1.15 for the twelve months
ended December 31, 2011, a decrease of $0.13, or 10.2%, from $1.28
for the twelve months ended December 31, 2010. The twelve months
ended December 31, 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 recorded in 2010, net income and diluted earnings
per common share would have increased $2.0 million and $0.05,
respectively.
Return on average equity was 8.8% for the twelve months ended
December 31, 2011 compared to 10.3% for the twelve months ended
December 31, 2010. Return on average assets was 0.8% for the twelve
months ended December 31, 2011 compared to 0.9% for the twelve
months ended December 31, 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
twelve months ended December 31, 2010.
For the twelve months ended December 31, 2011, net interest
income was $147.8 million, an increase of $9.9 million, or 7.2%,
from $137.9 million for the twelve months ended December 31, 2010.
The increase in net interest income is primarily attributable to an
increase in the net interest spread of 19 basis points to 3.46% for
the twelve months ended December 31, 2011 from 3.27% for the twelve
months ended December 31, 2010, combined with an increase in the
average balance of interest-earning assets of $72.9 million to
$4,090.4 million for the twelve months ended December 31, 2011. The
yield on interest-earning assets decreased 23 basis points to 5.49%
for the twelve months ended December 31, 2011 from 5.72% for the
twelve months ended December 31, 2010. However, this was more than
offset by a decline in the cost of funds of 42 basis points to
2.03% for the twelve months ended December 31, 2011 from 2.45% for
the comparable prior year period. The net interest margin improved
18 basis points to 3.61% for the twelve months ended December 31,
2011 from 3.43% for the twelve months ended December 31, 2010.
The 23 basis point decline in the yield of interest-earning
assets was primarily due to a 16 basis point reduction in the yield
of the loan portfolio to 5.94% for the twelve months ended December
31, 2011 from 6.10% for the twelve months ended December 31, 2010,
combined with a 33 basis point decline in the yield on total
securities to 4.08% for the twelve months ended December 31, 2011
from 4.41% for the comparable prior year period. In addition, the
yield of interest-earning assets was negatively impacted by a $90.8
million increase in the combined average balances of the lower
yielding securities portfolio and interest-earning deposits for the
twelve months ended December 31, 2011, both of which have a lower
yield than the yield of total interest-earning assets. The 16 basis
point decrease in the loan portfolio was primarily due to the
decline in the rates earned on new loan originations. The 33 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 6.03% for the twelve months ended December 31, 2011
from 6.16% for the twelve months ended December 31, 2010. The yield
on the mortgage loan portfolio, excluding prepayment penalty
income, decreased 15 basis points to 5.95% for the twelve months
ended December 31, 2011 from 6.10% for the twelve months ended
December 31, 2010.
The 42 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 43 basis points, 47 basis points, 24 basis points and 31
basis points, respectively, for the twelve months ended December
31, 2011 from the comparable prior year period. This resulted in a
decrease in the cost of due to depositors of 30 basis points to
1.59% for the twelve months ended December 31, 2011 from 1.89% for
the twelve months ended December 31, 2010. The cost of borrowed
funds decreased 33 basis points to 4.08% for the twelve months
ended December 31, 2011 from 4.41% for the twelve months ended
December 31, 2010 with the average balance decreasing $170.8
million to $693.4 million for the twelve months ended December 31,
2011 from $864.2 million for the twelve months ended December 31,
2010.
The net interest margin for the twelve months ended December 31,
2011 increased 18 basis points to 3.61% from 3.43% for the twelve
months ended December 31, 2010. The yield on interest-earning
assets decreased 23 basis points while the cost of interest-bearing
liabilities decreased 42 basis points during the twelve months
ended December 31, 2011 from the comparable prior year period.
Excluding prepayment penalty income, the net interest margin would
have been 3.55% for the twelve months ended December 31, 2011, an
increase of 16 basis points from 3.39% for the twelve months ended
December 31, 2010.
A provision for loan losses of $21.5 million was recorded for
the twelve months ended December 31, 2011; an increase of $0.5
million from $21.0 million that was recorded in the twelve months
ended December 31, 2010. During the twelve months ended December
31, 2011, non-performing loans increased $5.3 million to $117.4
million from $112.1 million at December 31, 2010. Net charge-offs
for the twelve months ended December 31, 2011 totaled $18.9
million. The current loan to value ratio for our non-performing
loans collateralized by real estate was 58.0% at December 31, 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 our loan portfolio. 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 $21.5 million provision for
possible loan losses for the twelve months ended December 31,
2011.
Non-interest income for the twelve months ended December 31,
2011 was $10.3 million, an increase of $2.0 million from $8.3
million for the twelve months ended December 31, 2010. The increase
in non-interest income was primarily due to a $1.9 million increase
in net gains recorded from fair value adjustments, a $0.5 million
increase in net gains on the sale of loans and a decrease of $0.5
million in OTTI charges recorded during the twelve months ended
December 31, 2011 compared to the twelve months ended December 31,
2010. These increases were partially offset by a $0.6 million
decrease in other income and a $0.6 million decrease in dividends
received from the FHLB-NY during the twelve months ended December
31, 2011 compared to the twelve months ended December 31, 2010.
Non-interest expense was $77.7 million for the twelve months
ended December 31, 2011, an increase of $7.4 million, or 10.5%,
from $70.4 million for the twelve months ended December 31, 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 $3.5 million for the twelve months ended
December 31, 2011 compared to the twelve months ended December 31,
2010 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, while professional
services and data processing increased $0.4 million and $0.5
million, respectively. In addition, other real estate
owned/foreclosure expense and other operating expense for the
twelve months ended December 31, 2011 increased $1.3 million and
$1.7 million, respectively, compared to the twelve months ended
December 31, 2010. The efficiency ratio was 49.2% for the twelve
months ended December 31, 2011 compared to 47.4% for the twelve
months ended December 31, 2010.
Balance Sheet Summary – At December 31,
2011
Total assets at December 31, 2011 were $4,288.0 million, a
decrease of $36.8 million, or 0.9%, from $4,324.7 million at
December 31, 2010. Total loans, net decreased $50.1 million, or
1.5%, during the twelve months ended December 31, 2011 to $3,198.5
million from $3,248.6 million at December 31, 2010. Loan
originations and purchases were $411.2 million for the twelve
months ended December 31, 2011, a decrease of $5.3 million from
$416.5 million for the twelve months ended December 31, 2010. The
decrease 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 originations have
shown improvement during the three months ended December 31, 2011,
as loan originations totaled $127.9 million, an increase of $22.0
million from the three months ended September 30, 2011 and an
increase of $32.0 million from the three months ended December 31,
2010. Loan applications in process also have shown improvement,
totaling $194.4 million at December 31, 2011 compared to $214.4
million at September 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 $4.6
million and $7.0 million for the three months ended December 31,
2011 and 2010, respectively, and $19.1 million and $7.7 million for
the twelve months ended December 31, 2011 and 2010,
respectively.
|
For the three months |
For the twelve months |
|
ended December 31, |
ended December 31, |
(In thousands) |
2011 |
2010 |
2011 |
2010 |
Multi-family residential |
$ 87,492 |
$ 43,832 |
$ 249,010 |
$ 171,238 |
Commercial real estate |
8 |
330 |
7,070 |
33,697 |
One-to-four family – mixed-use property |
5,202 |
6,956 |
23,754 |
29,415 |
One-to-four family – residential |
8,504 |
5,401 |
24,075 |
34,694 |
Co-operative apartments |
-- |
-- |
-- |
407 |
Construction |
440 |
4,282 |
1,723 |
10,493 |
Small Business Administration |
358 |
38 |
3,528 |
3,869 |
Taxi Medallion |
4,597 |
21,374 |
30,832 |
74,226 |
Commercial business and other |
21,336 |
13,747 |
71,211 |
58,496 |
Total |
$ 127,937 |
$ 95,960 |
$ 411,203 |
$ 416,535 |
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
fourth quarter of 2011 had an average loan-to-value ratio of 37.0%
and an average debt coverage ratio of 241%.
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:
|
|
December 31, |
September 30, |
December 31, |
(In thousands) |
2011 |
2011 |
2010 |
|
|
|
|
|
Multi-family residential |
$ 9,412 |
$ 9,701 |
$ 11,242 |
Commercial real estate |
2,413 |
2,424 |
2,448 |
One-to-four family - mixed-use
property |
795 |
797 |
206 |
Construction |
5,584 |
8,508 |
-- |
Commercial business and
other |
2,000 |
2,000 |
-- |
|
|
|
|
|
|
Total performing troubled debt
restructured |
$ 20,204 |
$ 23,430 |
$ 13,896 |
During the three months ended December 31, 2011, $3.2 million in
principal repayments were received on performing TDR and no
additional loans were classified as 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:
|
December 31, |
September 30, |
December 31, |
(In thousands) |
2011 |
2011 |
2010 |
Loans 90 days or more
past due and still accruing: |
|
|
Multi-family residential |
$ 6,287 |
$ -- |
$ 103 |
Commercial real estate |
92 |
423 |
3,328 |
Construction |
-- |
5,245 |
-- |
Commercial business and other |
-- |
-- |
6 |
Total |
6,379 |
5,668 |
3,437 |
|
|
|
|
Non-accrual loans: |
|
|
|
Multi-family residential |
19,946 |
27,846 |
35,633 |
Commercial real estate |
19,895 |
21,062 |
22,806 |
One-to-four family - mixed-use property |
28,429 |
29,890 |
30,478 |
One-to-four family - residential |
12,766 |
10,673 |
10,695 |
Co-operative apartments |
152 |
152 |
-- |
Construction |
14,721 |
14,331 |
4,465 |
Small business administration |
493 |
613 |
1,159 |
Commercial business and other |
14,660 |
6,122 |
3,419 |
Total |
111,062 |
110,689 |
108,655 |
|
|
|
|
Total non-performing
loans |
117,441 |
116,357 |
112,092 |
|
|
|
|
Other non-performing
assets: |
|
|
|
Real estate acquired through foreclosure |
3,179 |
4,250 |
1,588 |
Investment securities |
2,562 |
2,538 |
5,134 |
Total |
5,741 |
6,788 |
6,722 |
|
|
|
|
Total non-performing
assets |
$ 123,182 |
$ 123,145 |
$ 118,814 |
Included in non-accrual loans at December 31, 2011 were six
loans totaling $17.0 million which were restructured as TDR which
were not performing in accordance with their restructured terms.
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 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 $123.2 million at
December 31, 2011 and September 30, 2011, and increased $4.4
million from $118.8 million at December 31, 2010. Total
non-performing assets as a percentage of total assets were 2.87% at
December 31, 2011 compared to 2.86% at September 30, 2011 and 2.75%
at December 31, 2010. The ratio of allowance for loan losses to
total non-performing loans was 26% at December 31, 2011, 25% at
September 30, 2011 and 25% at December 31, 2010.
During the three months ended December 31, 2011, 43 loans
totaling $27.4 million were added to non-performing loans, 16 loans
totaling $8.2 million were returned to performing status, six loans
totaling $1.7 million were paid in full, 16 loans totaling $10.0
million were sold, two loans totaling $1.0 million were transferred
to other real estate owned, and charge-offs of $5.2 million were
recorded on non-performing loans. In addition, during the three
months ended December 31, 2011, $0.7 million in charge-offs were
recorded on substandard loans which were performing according to
their original terms and therefore, were not considered
non-performing.
Non-performing investment securities include two pooled trust
preferred securities for which we are not receiving payments. At
December 31, 2011, these investment securities had a combined
amortized cost and market value of $8.3 million and $2.6 million,
respectively.
Performing loans delinquent 60 to 89 days were $13.9 million at
December 31, 2011, a decrease of $0.4 million from $14.3 million at
September 30, 2011 and a decrease of $5.9 million from $19.8
million at December 31, 2010. Performing loans delinquent 30 to 59
days were $62.2 million at December 31, 2011, an increase of $4.2
million from $58.0 million at September 30, 2011 and a decrease of
$11.3 million from $73.5 million at December 31, 2010.
The Bank recorded net charge-offs for impaired loans of $5.8
million and $5.7 million during the three months ended December 31,
2011 and 2010, respectively, and net charge-offs for impaired loans
of $18.9 million and $13.6 million during the twelve months ended
December 31, 2011 and 2010, respectively.
The following table shows net loan charge-offs (recoveries) for
the periods indicated:
|
Three months ended |
Twelve months ended |
|
December 31, |
December 31, |
December 31, |
December 31, |
(In thousands) |
2011 |
2010 |
2011 |
2010 |
Multi-family residential |
$ 2,670 |
$ 1,731 |
$ 6,654 |
$ 5,773 |
Commercial real estate |
917 |
1,496 |
4,988 |
2,634 |
One-to-four family – mixed-use property |
1,233 |
882 |
2,521 |
2,465 |
One-to-four family – residential |
235 |
121 |
2,163 |
236 |
Construction |
385 |
1,017 |
1,088 |
1,879 |
Small Business Administration |
203 |
407 |
811 |
752 |
Commercial business and other |
116 |
49 |
630 |
(114) |
Total net loan charge-offs |
$ 5,759 |
$ 5,703 |
$ 18,855 |
$ 13,625 |
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.
For the year ended December 31, 2011, we realized approximately
85% of the appraised value upon sale of properties acquired via
foreclosure. This is a decrease from the 90% of appraised value we
had been realizing. As a result, we reduced our definition of fair
value to be 85% of the market value of the real estate securing the
loan, a decrease of five percent from 90% of the market value used
in the past. This change resulted in $1.6 million in additional
charge-offs during the three months ended December 31, 2011. In
addition, during the three months ended December 31, 2011, we sold
delinquent loans and received net proceeds of $10.0 million,
resulting in $1.4 million in net charge-offs.
During the twelve months ended December 31, 2011,
mortgage-backed securities decreased $6.8 million, or 0.9%, to
$747.3 million from $754.1 million at December 31, 2010. The
decrease in mortgage-backed securities during the twelve months
ended December 31, 2011 was primarily due to principal repayments
of $146.6 million and $1.6 million in OTTI charges partially offset
by purchases of $122.5 million and a $21.5 million improvement in
fair value. During the twelve months ended December 31, 2011, other
securities increased $15.1 million, or 30.2%, to $65.2 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 twelve months ended December 31, 2011,
there were $35.2 million in purchases partially offset by
maturities of $7.5 million, calls of $8.0 million and a reduction
in the fair value of $4.1 million.
Total liabilities were $3,871.0 million at December 31, 2011, a
decrease of $63.7 million, or 1.6%, from $3,934.7 million at
December 31, 2010. During the twelve months ended December 31,
2011, due to depositors decreased $46.8 million, or 1.5%, to
$3,116.5 million, as a result of a $55.4 million decrease in core
deposits partially offset by an $8.5 million increase in
certificates of deposit. Borrowed funds decreased $23.5 million
during the twelve months ended December 31, 2011.
Total stockholders' equity increased $26.9 million, or 6.9%, to
$416.9 million at December 31, 2011 from $390.0 million at December
31, 2010. Stockholders' equity increased primarily due to net
income of $35.3 million for the twelve months ended December 31,
2011, an increase in other comprehensive income of $8.6 million
primarily due to an increase in the fair value of the securities
portfolio and the net issuance of 272,331 common shares during the
twelve months ended December 31, 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 $15.9 million and the purchase of 624,088
treasury shares at a cost of $7.3 million. Book value per common
share was $13.49 at December 31, 2011 compared to $12.48 at
December 31, 2010. Tangible book value per common share was $12.96
at December 31, 2011 compared to $11.95 at December 31, 2010.
During the twelve months ended December 31, 2011, the Company
repurchased 624,088 shares of the Company's common stock at an
average cost of $11.72 per share. At December 31, 2011, 737,962
shares remain to be repurchased under the current stock repurchase
program. Stock will be purchased under the current stock repurchase
program from time to time, in the open market or through private
transactions, subject to market conditions. There is no expiration
or maximum dollar amount under this authorization.
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 |
Twelve months ended |
|
December 31, |
December 31, |
September 30, |
December 31, |
December 31, |
|
2011 |
2010 |
2011 |
2011 |
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income before income taxes |
$ 13,835 |
$ 13,928 |
$ 16,906 |
$ 58,817 |
$ 54,776 |
|
|
|
|
|
|
Net gain from fair value adjustments |
(695) |
(201) |
(2,085) |
(1,960) |
(47) |
Other-than-temporary impairment charges |
-- |
507 |
652 |
1,578 |
2,045 |
Net loss on sale of securities |
-- |
72 |
-- |
-- |
10 |
Partial recovery of WorldCom Inc. |
-- |
-- |
-- |
-- |
(164) |
Bank Owned Life Insurance exchange fee |
-- |
87 |
-- |
-- |
87 |
|
|
|
|
|
|
Core income before taxes |
13,140 |
14,393 |
15,473 |
58,435 |
56,707 |
|
|
|
|
|
|
Provision for income taxes for core
income |
5,358 |
5,540 |
6,125 |
23,303 |
22,238 |
|
|
|
|
|
|
Core net income |
$ 7,782 |
$ 8,853 |
$ 9,348 |
$ 35,132 |
$ 34,469 |
|
|
|
|
|
|
GAAP diluted earnings per common share |
$ 0.27 |
$ 0.28 |
$ 0.33 |
$ 1.15 |
$ 1.28 |
|
|
|
|
|
|
Net gain from fair value adjustments, net of
tax |
(0.01) |
-- |
(0.03) |
(0.04) |
-- |
Other-than-temporary impairment charges, net
of tax |
-- |
0.01 |
0.01 |
0.03 |
0.04 |
Net loss on sale of securities, net of
tax |
-- |
-- |
-- |
-- |
-- |
Partial recovery of WorldCom, net of tax |
-- |
-- |
-- |
-- |
-- |
New York State Legislative tax change |
-- |
-- |
-- |
-- |
(0.18) |
|
|
|
|
|
|
Core diluted earnings per common share* |
$ 0.26 |
$ 0.29 |
$ 0.30 |
$ 1.15 |
$ 1.14 |
|
|
|
|
|
|
* 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 |
Twelve months ended |
|
December 31, |
December 31, |
September 30, |
December 31, |
December 31, |
|
2011 |
2010 |
2011 |
2011 |
2010 |
|
(in thousands) |
|
|
|
|
|
|
GAAP income before income taxes |
$ 13,835 |
$ 13,928 |
$ 16,906 |
$ 58,817 |
$ 54,776 |
|
|
|
|
|
|
Provision for loan losses |
6,500 |
6,000 |
5,000 |
21,500 |
21,000 |
Net gain from fair value adjustments |
(695) |
(201) |
(2,085) |
(1,960) |
(47) |
Other-than-temporary impairment charges |
-- |
507 |
652 |
1,578 |
2,045 |
Net gain on sale of securities |
-- |
72 |
-- |
-- |
10 |
Partial recovery of WorldCom Inc. |
-- |
-- |
-- |
-- |
(164) |
Bank Owned Life Insurance exchange fee |
-- |
87 |
|
-- |
87 |
|
|
|
|
|
|
Core net income before the provision for loan
losses and income taxes |
$ 19,640 |
$ 20,393 |
$ 20,473 |
$ 79,935 |
$ 77,707 |
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 seventeen 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) |
|
|
|
December 31, |
December 31, |
|
2011 |
2010 |
ASSETS |
|
|
Cash and due from banks |
$ 55,721 |
$ 47,789 |
Securities available for sale: |
|
|
Mortgage-backed securities |
747,288 |
754,077 |
Other securities |
65,242 |
50,112 |
Loans: |
|
|
Multi-family residential |
1,391,221 |
1,252,176 |
Commercial real estate |
580,783 |
662,794 |
One-to-four family ― mixed-use
property |
693,932 |
728,810 |
One-to-four family ― residential |
220,431 |
241,376 |
Co-operative apartments |
5,505 |
6,215 |
Construction |
47,140 |
75,519 |
Small Business Administration |
14,039 |
17,511 |
Taxi medallion |
54,328 |
88,264 |
Commercial business and other |
206,614 |
187,161 |
Net unamortized premiums and unearned
loan fees |
14,888 |
16,503 |
Allowance for loan losses |
(30,344) |
(27,699) |
Net loans |
3,198,537 |
3,248,630 |
Interest and dividends receivable |
17,965 |
19,475 |
Bank premises and equipment, net |
24,417 |
23,041 |
Federal Home Loan Bank of New York stock |
30,245 |
31,606 |
Bank owned life insurance |
83,454 |
76,129 |
Goodwill |
16,127 |
16,127 |
Core deposit intangible |
937 |
1,405 |
Other assets |
48,016 |
56,354 |
Total assets |
$ 4,287,949 |
$ 4,324,745 |
|
|
|
LIABILITIES |
|
|
Due to depositors: |
|
|
Non-interest bearing |
$ 118,507 |
$ 96,198 |
Interest-bearing: |
|
|
Certificate of deposit accounts |
1,529,110 |
1,520,572 |
Savings accounts |
349,630 |
388,512 |
Money market accounts |
200,183 |
371,998 |
NOW accounts |
919,029 |
786,015 |
Total interest-bearing deposits |
2,997,952 |
3,067,097 |
Mortgagors' escrow deposits |
29,786 |
27,315 |
Borrowed funds |
685,139 |
708,683 |
Other liabilities |
39,654 |
35,407 |
Total liabilities |
3,871,038 |
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 December 31, 2011 and December 31, |
|
2010, respectively;
30,904,177 shares and 31,255,934 shares outstanding at |
|
December 31, 2011 and December 31, 2010,
respectively) |
315 |
313 |
Additional paid-in capital |
195,628 |
189,348 |
Treasury stock (626,418 shares at December
31, 2011 and none at December 31, 2010) |
(7,355) |
-- |
Retained earnings |
223,510 |
204,128 |
Accumulated other comprehensive income
(loss), net of taxes |
4,813 |
(3,744) |
Total stockholders' equity |
416,911 |
390,045 |
|
|
|
Total liabilities and stockholders'
equity |
$ 4,287,949 |
$ 4,324,745 |
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF INCOME |
(Dollars in thousands, except
per share data) |
(Unaudited) |
|
For the three months |
For the twelve months |
|
ended December 31, |
ended December 31, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
Interest and dividend
income |
|
|
|
|
Interest and fees on loans |
$ 46,876 |
$ 48,694 |
$ 191,454 |
$ 197,469 |
Interest and dividends on securities: |
|
|
|
|
Interest |
7,540 |
7,652 |
32,121 |
31,252 |
Dividends |
205 |
203 |
811 |
813 |
Other interest income |
23 |
61 |
112 |
94 |
Total interest and dividend
income |
54,644 |
56,610 |
224,498 |
229,628 |
|
|
|
|
|
Interest expense |
|
|
|
|
Deposits |
11,477 |
13,014 |
48,431 |
53,655 |
Other interest expense |
6,443 |
8,541 |
28,292 |
38,112 |
Total interest expense |
17,920 |
21,555 |
76,723 |
91,767 |
|
|
|
|
|
Net interest income |
36,724 |
35,055 |
147,775 |
137,861 |
Provision for loan losses |
6,500 |
6,000 |
21,500 |
21,000 |
Net interest income after provision
for loan losses |
30,224 |
29,055 |
126,275 |
116,861 |
|
|
|
|
|
Non-interest income |
|
|
|
|
Other-than-temporary impairment ("OTTI")
charge |
-- |
(3,285) |
(9,365) |
(7,130) |
Less: Non-credit portion of OTTI
charge recorded in Other |
|
|
|
Comprehensive Income, before
taxes |
-- |
2,778 |
7,787 |
5,085 |
Net OTTI charge recognized in earnings |
-- |
(507) |
(1,578) |
(2,045) |
Loan fee income |
454 |
412 |
1,941 |
1,695 |
Banking services fee income |
420 |
397 |
1,699 |
1,747 |
Net gain on sale of loans |
18 |
-- |
511 |
17 |
Net loss from sale of securities |
-- |
(72) |
-- |
(10) |
Net gain from fair value adjustments |
695 |
201 |
1,960 |
47 |
Federal Home Loan Bank of New York stock
dividends |
322 |
594 |
1,502 |
2,102 |
Bank owned life insurance |
702 |
598 |
2,769 |
2,638 |
Other income |
369 |
433 |
1,477 |
2,109 |
Total non-interest income |
2,980 |
2,056 |
10,281 |
8,300 |
|
|
|
|
|
Non-interest expense |
|
|
|
|
Salaries and employee benefits |
8,838 |
8,659 |
38,262 |
34,785 |
Occupancy and equipment |
2,091 |
1,931 |
7,803 |
7,246 |
Professional services |
1,764 |
1,285 |
6,697 |
6,344 |
FDIC deposit insurance |
969 |
1,166 |
4,378 |
4,889 |
Data processing |
1,133 |
722 |
4,458 |
3,996 |
Depreciation and amortization |
848 |
701 |
3,185 |
2,795 |
Other real estate owned / foreclosure
expense |
833 |
425 |
2,471 |
1,194 |
Other operating expenses |
2,893 |
2,294 |
10,485 |
9,136 |
Total non-interest expense |
19,369 |
17,183 |
77,739 |
70,385 |
|
|
|
|
|
Income before income
taxes |
13,835 |
13,928 |
58,817 |
54,776 |
|
|
|
|
|
Provision for income
taxes |
|
|
|
|
Federal |
4,174 |
4,154 |
17,749 |
19,343 |
State and local |
1,490 |
1,225 |
5,720 |
(3,402) |
Total taxes |
5,664 |
5,379 |
23,469 |
15,941 |
|
|
|
|
|
Net income |
$ 8,171 |
$ 8,549 |
$ 35,348 |
$ 38,835 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ 0.27 |
$ 0.28 |
$ 1.15 |
$ 1.28 |
Diluted earnings per common share |
$ 0.27 |
$ 0.28 |
$ 1.15 |
$ 1.28 |
Dividends per common share |
$ 0.13 |
$ 0.13 |
$ 0.52 |
$ 0.52 |
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
SELECTED CONSOLIDATED
FINANCIAL DATA |
(Dollars in thousands, except
share data) |
(Unaudited) |
|
At or for the three months |
At or for the twelve
months |
|
ended December 31 |
ended December 31 |
|
2011 |
2010 |
2011 |
2010 |
Per Share Data |
|
|
|
|
Basic earnings per share |
$ 0.27 |
$ 0.28 |
$ 1.15 |
$ 1.28 |
Diluted earnings per share |
$ 0.27 |
$ 0.28 |
$ 1.15 |
$ 1.28 |
Average number of shares outstanding
for: |
|
|
|
|
Basic earnings per common share
computation |
30,371,014 |
30,372,646 |
30,622,637 |
30,335,680 |
Diluted earnings per common share
computation |
30,387,260 |
30,414,577 |
30,654,321 |
30,366,899 |
Book value per common share (1) |
$13.49 |
$12.48 |
$13.49 |
$12.48 |
Tangible book value per common share (2) |
$12.96 |
$11.95 |
$12.96 |
$11.95 |
|
|
|
|
|
Average Balances |
|
|
|
|
Total loans, net |
$ 3,207,903 |
$ 3,249,003 |
$ 3,220,617 |
$ 3,238,491 |
Total interest-earning assets |
4,058,395 |
4,109,353 |
4,090,437 |
4,017,511 |
Total assets |
4,288,322 |
4,329,738 |
4,311,368 |
4,234,550 |
Total due to depositors |
2,990,047 |
3,010,770 |
3,038,566 |
2,840,022 |
Total interest-bearing liabilities |
3,724,629 |
3,813,316 |
3,771,404 |
3,742,440 |
Stockholders' equity |
416,483 |
392,767 |
403,330 |
376,291 |
Common stockholders' equity |
416,483 |
392,767 |
403,330 |
376,291 |
Performance Ratios (3) |
|
|
|
|
Return on average assets |
0.76 % |
0.79% |
0.82% |
0.92% |
Return on average equity |
7.85 |
8.71 |
8.76 |
10.32 |
Yield on average interest-earning assets |
5.39 |
5.51 |
5.49 |
5.72 |
Cost of average interest-bearing
liabilities |
1.92 |
2.26 |
2.03 |
2.45 |
Interest rate spread during period |
3.47 |
3.25 |
3.46 |
3.27 |
Net interest margin |
3.62 |
3.41 |
3.61 |
3.43 |
Non-interest expense to average assets |
1.81 |
1.59 |
1.80 |
1.66 |
Efficiency ratio (4) |
49.22 |
45.56 |
49.18 |
47.37 |
Average interest-earning assets to
average |
|
|
|
|
interest-bearing liabilities |
1.09X |
1.08X |
1.08X |
1.07X |
(1) Calculated by dividing common stockholders' equity of
$416.9 million and $390.0 million at December 31, 2011 and 2010,
respectively, by 30,904,177 and 31,255,934 shares outstanding at
December 31, 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 $400.7 million and $373.6 million at December 31, 2011
and 2010, respectively, by 30,904,177 and 31,255,934 shares
outstanding at December 31, 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 months ended December 31,
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 year |
At or for the year |
|
ended |
ended |
|
December 31, 2011 |
December 31, 2010 |
|
|
|
Selected Financial Ratios and Other
Data |
|
|
|
|
|
Regulatory capital ratios (for Flushing
Savings Bank only): |
|
|
Core capital (well capitalized =
5%) |
9.63% |
9.18% |
Tier 1 risk-based capital (well
capitalized = 6%) |
14.26 |
13.07 |
Total risk-based capital (well
capitalized = 10%) |
15.32 |
13.98 |
|
|
|
Capital ratios: |
|
|
Average equity to average
assets |
9.36% |
8.89% |
Equity to total assets |
9.72 |
9.02 |
Tangible common equity to tangible
assets |
9.38 |
8.67 |
|
|
|
Asset quality: |
|
|
Non-accrual loans |
$ 111,062 |
$ 108,655 |
Non-performing loans |
117,441 |
112,092 |
Non-performing assets |
123,182 |
118,814 |
Net charge-offs |
18,855 |
13,625 |
|
|
|
Asset quality ratios: |
|
|
Non-performing loans to gross
loans |
3.65% |
3.44% |
Non-performing assets to total
assets |
2.87 |
2.75 |
Allowance for loan losses to gross
loans |
0.94 |
0.85 |
Allowance for loan losses to
non-performing assets |
24.63 |
23.31 |
Allowance for loan losses to
non-performing loans |
25.84 |
24.71 |
|
|
|
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
NET INTEREST
MARGIN |
(Dollars in thousands) |
(Unaudited) |
|
For the three months
ended December 31, |
|
2011 |
2010 |
|
Average |
|
Yield/ |
Average |
|
Yield/ |
|
Balance |
Interest |
Cost |
Balance |
Interest |
Cost |
Assets |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Mortgage loans, net (1) |
$ 2,921,480 |
43,451 |
5.95% |
$ 2,958,601 |
44,836 |
6.06% |
Other loans, net (1) |
286,423 |
3,425 |
4.78 |
290,402 |
3,858 |
5.31 |
Total loans, net |
3,207,903 |
46,876 |
5.85 |
3,249,003 |
48,694 |
5.99 |
Mortgage-backed securities |
740,398 |
7,259 |
3.92 |
706,748 |
7,513 |
4.25 |
Other securities |
55,186 |
486 |
3.52 |
41,160 |
342 |
3.32 |
Total securities |
795,584 |
7,745 |
3.89 |
747,908 |
7,855 |
4.20 |
Interest-earning deposits and |
|
|
|
|
|
|
federal funds sold |
54,908 |
23 |
0.17 |
112,442 |
61 |
0.22 |
Total interest-earning assets |
4,058,395 |
54,644 |
5.39 |
4,109,353 |
56,610 |
5.51 |
Other assets |
229,927 |
|
|
220,385 |
|
|
Total assets |
$ 4,288,322 |
|
|
$ 4,329,738 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings accounts |
$ 355,944 |
359 |
0.40 |
$ 402,168 |
691 |
0.69 |
NOW accounts |
884,861 |
1,510 |
0.68 |
785,370 |
1,869 |
0.95 |
Money market accounts |
212,628 |
191 |
0.36 |
379,701 |
808 |
0.85 |
Certificate of deposit accounts |
1,536,614 |
9,406 |
2.45 |
1,443,531 |
9,636 |
2.67 |
Total due to depositors |
2,990,047 |
11,466 |
1.53 |
3,010,770 |
13,004 |
1.73 |
Mortgagors' escrow accounts |
40,829 |
11 |
0.11 |
37,353 |
10 |
0.11 |
Total deposits |
3,030,876 |
11,477 |
1.51 |
3,048,123 |
13,014 |
1.71 |
Borrowed funds |
693,753 |
6,443 |
3.71 |
765,193 |
8,541 |
4.46 |
Total interest-bearing liabilities |
3,724,629 |
17,920 |
1.92 |
3,813,316 |
21,555 |
2.26 |
Non interest-bearing deposits |
112,837 |
|
|
93,988 |
|
|
Other liabilities |
34,373 |
|
|
29,667 |
|
|
Total liabilities |
3,871,839 |
|
|
3,936,971 |
|
|
Equity |
416,483 |
|
|
392,767 |
|
|
Total liabilities and equity |
$ 4,288,322 |
|
|
$ 4,329,738 |
|
|
|
|
|
|
|
|
|
Net interest income / |
|
|
|
|
|
|
net interest rate spread |
|
$ 36,724 |
3.47% |
|
$ 35,055 |
3.25% |
|
|
|
|
|
|
|
Net interest-earning assets / |
|
|
|
|
|
|
net interest margin |
$ 333,766 |
|
3.62% |
$ 296,037 |
|
3.41% |
|
|
|
|
|
|
|
Ratio of interest-earning assets to |
|
|
|
|
|
|
interest-bearing liabilities |
|
|
1.09X |
|
|
1.08X |
(1) Loan interest income includes loan
fee income (which includes net amortization of deferred fees and
costs, late charges and prepayment penalties) of approximately $0.3
million and $0.2 million for the three months ended December 31,
2011 and 2010, respectively.
|
FLUSHING FINANCIAL
CORPORATION and SUBSIDIARIES |
NET INTEREST
MARGIN |
(Dollars in thousands) |
(Unaudited) |
|
For the twelve months
ended December 31, |
|
2011 |
2010 |
|
Average |
|
Yield/ |
Average |
|
Yield/ |
|
Balance |
Interest |
Cost |
Balance |
Interest |
Cost |
Assets |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Mortgage loans, net (1) |
$ 2,929,647 |
176,777 |
6.03% |
$ 2,956,514 |
182,086 |
6.16% |
Other loans, net (1) |
290,970 |
14,677 |
5.04 |
281,977 |
15,383 |
5.46 |
Total loans, net |
3,220,617 |
191,454 |
5.94 |
3,238,491 |
197,469 |
6.10 |
Mortgage-backed securities |
749,347 |
30,999 |
4.14 |
673,000 |
30,246 |
4.49 |
Other securities |
58,431 |
1,933 |
3.31 |
54,069 |
1,819 |
3.36 |
Total securities |
807,778 |
32,932 |
4.08 |
727,069 |
32,065 |
4.41 |
Interest-earning deposits and |
|
|
|
|
|
|
federal funds sold |
62,042 |
112 |
0.18 |
51,951 |
94 |
0.18 |
Total interest-earning assets |
4,090,437 |
224,498 |
5.49 |
4,017,511 |
229,628 |
5.72 |
Other assets |
220,931 |
|
|
217,039 |
|
|
Total assets |
$ 4,311,368 |
|
|
$ 4,234,550 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Savings accounts |
$ 369,206 |
2,091 |
0.57 |
$ 413,657 |
3,334 |
0.81 |
NOW accounts |
838,648 |
6,610 |
0.79 |
683,390 |
7,511 |
1.10 |
Money market accounts |
278,692 |
1,309 |
0.47 |
394,536 |
3,713 |
0.94 |
Certificate of deposit accounts |
1,552,020 |
38,372 |
2.47 |
1,348,439 |
39,044 |
2.90 |
Total due to depositors |
3,038,566 |
48,382 |
1.59 |
2,840,022 |
53,602 |
1.89 |
Mortgagors' escrow accounts |
39,430 |
49 |
0.12 |
38,245 |
53 |
0.14 |
Total deposits |
3,077,996 |
48,431 |
1.57 |
2,878,267 |
53,655 |
1.86 |
Borrowed funds |
693,408 |
28,292 |
4.08 |
864,173 |
38,112 |
4.41 |
Total interest-bearing liabilities |
3,771,404 |
76,723 |
2.03 |
3,742,440 |
91,767 |
2.45 |
Non interest-bearing deposits |
107,278 |
|
|
88,238 |
|
|
Other liabilities |
29,356 |
|
|
27,581 |
|
|
Total liabilities |
3,908,038 |
|
|
3,858,259 |
|
|
Equity |
403,330 |
|
|
376,291 |
|
|
Total liabilities and equity |
$ 4,311,368 |
|
|
$ 4,234,550 |
|
|
|
|
|
|
|
|
|
Net interest income / |
|
|
|
|
|
|
net interest rate spread |
|
$ 147,775 |
3.46% |
|
$ 137,861 |
3.27% |
|
|
|
|
|
|
|
Net interest-earning assets / |
|
|
|
|
|
|
net interest margin |
$ 319,033 |
|
3.61% |
$ 275,071 |
|
3.43% |
|
|
|
|
|
|
|
Ratio of interest-earning assets to |
|
|
|
|
|
|
interest-bearing liabilities |
|
|
1.08X |
|
|
1.07X |
(1) Loan interest income includes loan
fee income (which includes net amortization of deferred fees and
costs, late charges and prepayment penalties) of approximately $1.3
million and $1.2 million for the twelve months ended December 31,
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)
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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