Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC),
the parent holding company for Flushing Bank (the “Bank”), today
announced its financial results for the fourth quarter and fiscal
year ended December 31, 2019.
John R. Buran, President and Chief Executive
Officer, stated, “We are pleased to report GAAP EPS of $0.45, an
increase of 22% QoQ. Net interest income increased 6% from
3Q19, as the net interest margin improved by 11bps. The
improvement in the net interest margin was driven by an 11bps
decline in the cost of funds. The cost of funds has shown
continuous improvement throughout the quarter. Concurrently, loan
portfolio yields increased four basis points QoQ, as the negative
effects on our floating rate C&I portfolio were recorded early
in the quarter following the Fed decreasing rates. Our hedging
strategies contributed positively to both net interest and
non-interest income as the yield curve exhibited a small upward
slope. We continue to see additional opportunities for repricing
retail CDs downward as we have approximately $1 billion maturing in
2020, at an average cost of 2.20%, compared to the current average
cost of new deposits of 1.53%. As a result of the above, our core
net interest margin for 4Q19 was unchanged from 3Q19. Our strong
credit metrics improved as classified loans hit the lowest level
since 2008 and delinquent loans decreased to 34bps of the gross
loan portfolio. Loan growth declined from 3Q19, however, we start
2020 with a pipeline of $325 million which exceeds the pipeline we
started 2019 with by $128 million.”
“In preparation for 2020, we enhanced our
distribution network. We are currently in the testing phase
of upgrading our mobile and online banking offerings, which are
both components of our digital transformation strategy. We expect
this digital transformation to significantly improve the customer
experience for both business and consumer customers. In
December, we opened our 20th branch. The new branch in Hicksville,
NY will expand on our successful ethnic strategy in the Asian
market. We also relocated our Bell Boulevard branch to better serve
our growing Asian market.”
“Most importantly, is our pending acquisition of
Empire Bancorp, Inc. The acquisition remains on track with an
expected closing in the second quarter of 2020. All required
applications and notifications have been filed with the respective
agencies. As of December 31, 2019, our pro forma balance
sheet would be approximately $8.0 billion in assets, $6.4
billion in loans, and $5.9 billion in deposits while expanding into
the Suffolk County market. Suffolk County is one of the richest
counties in the country with approximately 1.5 million people and
75,000 businesses. Our plans for substantial cost reductions
and improvements in the business remain on track.”
“We remain well capitalized and well positioned
to deliver profitable growth and long-term value to our
shareholders as we continue to execute our strategic
objectives.”
Summary of Strategic
Objectives
- Manage cost of funds and continue to improve funding mix
- Increase interest income by leveraging loan pricing
opportunities and portfolio mix
- Enhance core earnings power by improving scalability and
efficiency
- Manage credit risk
- Remain well capitalized under all stress test scenarios
Earnings
Summary:
Net Interest
Income
Net interest income for 4Q19 was $41.2 million,
an increase of $0.5 million, or 1.3% YoY (4Q19 compared to 4Q18)
and $2.2 million, or 5.7% QoQ (4Q19 compared to 3Q19).
- Net interest margin of 2.48%, decreased 9bps YoY, but increased
11bps QoQ
- Net interest spread of 2.25%, decreased 10bps YoY, but
increased 10bps QoQ
- Yield on average interest-earning assets of 4.21%, decreased
4bps YoY and 1bp QoQ
- Cost of average interest-bearing liabilities of 1.96%,
increased 6bps YoY, but decreased 11bps QoQ
- Cost of funds of 1.83%, increased 6bps YoY, but decreased 11bps
QoQ
- Average balance of total interest-earning assets of $6,677.3
million, increased $312.9 million, or 4.9%, YoY and $87.8 million,
or 1.3%, QoQ
- Net interest income includes prepayment penalty income from
loans totaling $0.9 million in 4Q19, $1.7 million in 3Q19 and $0.9
million in 4Q18; recovered interest from delinquent loans of $0.4
million in 4Q19, $0.3 million in 3Q19 and $0.3 million in 4Q18; net
gains from fair value adjustments on qualifying hedges totaling
$1.0 million in 4Q19 and net losses from fair value adjustments on
qualifying hedges totaling $1.3 million in 3Q19 and none in
4Q18
- Absent all above items noted in the preceding bullet, the yield
on interest-earning assets was 4.07% in 4Q19, a decrease of 11bps
from 3Q19 and 4Q18 and the net interest margin was 2.33% in 4Q19
and 3Q19, but decreased 16bps from 4Q18
Provision (benefit) for loan
losses
The Company recorded a benefit of $0.3 million
in 4Q19 compared to a provision of $0.7 million in 3Q19 and $0.4
million in 4Q18.
- 4Q19 benefit for loan losses was primarily due to a change in
the loan portfolio mix
- Net charge-offs (recoveries) of ($34,000) in 4Q19, $0.2 million
in 3Q19, and ($0.2) million in 4Q18
- We continue to finalize our Day One impact assumptions and
expect the adoption of CECL to increase the current allowance
between 5% and 15%
- The CECL standard will create additional volatility to our
future provisions due to the assumptions used for the macroeconomic
variables, loan composition and product mix, as they are all
subject to change
Non-interest
Income
Non-interest income for 4Q19 was $5.0 million,
an increase of $6.0 million YoY, and $4.0 million QoQ
- Non-interest income included net gains from fair value
adjustments of $0.8 million in 4Q19 and net losses from fair value
adjustments of $2.1 million in 3Q19 and $3.6 million in 4Q18
- Additionally, non-interest income included net losses from the
sale of securities of $1.9 million in 4Q18; net gains from sale of
assets of $1.1 million in 4Q18; net gains on sale of loans of $0.5
million in 4Q19 and $0.2 million in 3Q19 and life insurance
proceeds of $0.4 million in 4Q19
- Absent all above items, non-interest income was $3.3 million in
4Q19, a decrease of $0.1 million, or 1.6% YoY, but an increase of
$0.4 million, or 12.3% QoQ
Non-interest
Expense
Non-interest expense for 4Q19 was $29.6 million,
an increase of $3.9 million, or 15.1 % YoY, and $3.6 million, or
13.8% QoQ
- Non-interest expense included the benefit of the FDIC small
business assessment credit of $0.3 million in 4Q19 and $1.3 million
in 3Q19
- Additionally, non-interest expense included the impact of the
change in the discount rate used to calculate the Company’s
liability of BOLI split dollar insurance; the discount rate
decreased in 4Q19 resulting in additional expense totaling $1.2
million, while the discount rate increased in 4Q18 resulting in a
decrease in expense totaling $0.8 million
- Lastly, non-interest expense included merger expenses totaling
$1.1 million in 4Q19 and $0.5 million in 3Q19
- Absent all above items, non-interest expense was $27.7 million
in 4Q19, an increase of $1.2 million, or 4.4% YoY, and $0.9
million, or 3.4% QoQ
- The ratio of non-interest expense to average assets was to
1.68% in 4Q19 compared to 1.49% in 3Q19 and 1.54% in 4Q18; absent
all above items non-interest expense to average assets was 1.57% in
4Q19 compared to 1.54% in 3Q19 and 1.59% in 4Q18
- The efficiency ratio was 65.0% in 4Q19 compared to 58.9% in
3Q19 and 58.5% in 4Q18
Provision for Income
Taxes
The provision for income taxes in 4Q19 was $4.0
million, an increase of $2.9 million YoY and $1.4 million QoQ.
- Pre-tax income increased by $3.4 million, or 25.4% YoY, and
$3.6 million, or 27.4% QoQ
- The effective tax rates were 23.4% in 4Q19, 19.1% in 3Q19 and
7.8% in 4Q18
- 4Q18 reflects the release of a previously accrued tax liability
of $1.8 million
Financial Condition
Summary:
Loans:
- Net loans held for investment were $5,750.5 million reflecting
an increase of 4.0% from December 31, 2018, as we continue to focus
on the origination of full banking relationship loans through
C&I loans, multi-family loans and commercial real estate
- Loan closings of commercial business loans, multi-family loans
and commercial real estate totaled $241.0 million for 4Q19, or
89.3% of loan production
- Loan pipeline was $324.5 million at December 31, 2019, compared
to $418.9 million at September 30, 2019 and $196.6 million at
December 31, 2018
- The loan-to-value ratio on our portfolio of real estate
dependent loans as of December 31, 2019 totaled 38.2%
The following table shows the weighted average
rate received from loan closings for the periods indicated:
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Loan
type |
|
2019 |
|
2019 |
|
2018 |
|
Mortgage loans |
|
3.97 |
% |
4.40 |
% |
4.79 |
% |
Non-mortgage loans |
|
4.68 |
% |
4.38 |
% |
5.11 |
% |
Total loans |
|
4.19 |
% |
4.39 |
% |
4.90 |
% |
Credit Quality:
- Non-performing loans totaled $13.3 million, a decrease of $3.0
million, or 18.4%, from $16.3 million at December 31, 2018
- Non-performing assets totaled $13.5 million, a decrease of $2.8
million, or 16.9%, from $16.3 million at December 31, 2018
- Classified assets totaled $24.6 million, a decrease of $21.9
million, or 47.1%, from $46.5 million at December 31, 2018
- Loans classified as troubled debt restructured (TDR) totaled
$6.5 million, a decrease of $1.9 million, or 22.4%, from $8.4
million at December 31, 2018
- We anticipate continued low loss content in the portfolio, as
our strong underwriting standards coupled with our practice of
obtaining updated appraisals and recording charge-offs early in the
delinquency process has resulted in a 26.2% average loan-to-value
for non-performing loans collateralized by real estate
- Net charge-offs totaled $2.0 million during the year ended
December 31, 2019 driven mainly by charge-offs of one commercial
business loan relationship
Capital
Management:
- The Company and Bank, at December 31, 2019, were both well
capitalized under all applicable regulatory requirements
- Through 4Q19, stockholders’ equity increased $30.2 million, or
5.5%, to $579.7 million primarily due to net income of $41.3
million, partially offset by the declaration and payment of
dividends on the Company’s common stock
- During 4Q19, the Company did not repurchase any shares; as of
December 31, 2019, up to 427,211 shares remained subject to
repurchase under the authorized stock repurchase program, which has
no expiration or maximum dollar limit
- Book value per common share increased to $20.59 at December 31,
2019, from $19.64 at December 31, 2018 and tangible book value per
common share, a non-GAAP measure, increased to $20.02 at December
31, 2019, from $19.07 at December 31, 2018
Conference Call
Information:
- John R. Buran, President and Chief Executive Officer, and Susan
K. Cullen, Senior Executive Vice President and Chief Financial
Officer, will host a conference call on Friday, January 31, 2020 at
9:30 AM (ET) to discuss the Company’s strategy and results for the
fourth quarter
- Dial-in for Live Call: 1-877-509-5836
-
Webcast: https://services.choruscall.com/links/ffic200131.html
- Dial-in for Replay: 1-877-344-7529
- Replay Access Code: 10137546
- The conference call will be simultaneously webcast and
archived through January 31, 2021
About Flushing Financial
Corporation
Flushing Financial Corporation (Nasdaq: FFIC) is
the holding company for Flushing Bank®, a New York State-chartered
commercial bank insured by the Federal Deposit Insurance
Corporation. The Bank serves consumers, businesses, professionals,
corporate clients, and public entities by offering a full
complement of deposit, loan, equipment finance, and cash management
services through its banking offices located in Queens, Brooklyn,
Manhattan, and on Long Island. As a leader in real estate lending,
the Bank’s experienced lending team creates mortgage solutions for
real estate owners and property managers both within and outside
the New York City metropolitan area. Flushing Bank is an Equal
Housing Lender. The Bank also operates an online banking division
consisting of iGObanking.com®, which offers competitively priced
deposit products to consumers nationwide, and BankPurely®, an
eco-friendly, healthier lifestyle community brand.
Additional information on Flushing Bank and
Flushing Financial Corporation may be obtained by visiting the
Company’s website at http://www.flushingbank.com.
“Safe Harbor” Statement under
the Private Securities Litigation Reform Act of
1995: Statements in this Press Release
relating to plans, strategies, economic performance and trends,
projections of results of specific activities or investments and
other statements that are not descriptions of historical facts may
be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking information is inherently subject to
risks and uncertainties, and actual results could differ materially
from those currently anticipated due to a number of factors, which
include, but are not limited to, risk factors discussed in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 and in other documents filed by the Company with
the Securities and Exchange Commission (the “SEC”) from time to
time, including those additional risk factors discussed under the
heading “Risk Factors” in our Registration Statement on Form S-4/A
as filed with the SEC on January 9, 2020, relating to the pending
acquisition of Empire Bancorp, Inc. Forward-looking
statements may be identified by terms such as “may”, “will”,
“should”, “could”, “expects”, “plans”, “intends”, “anticipates”,
“believes”, “estimates”, “predicts”, “forecasts”, “goals”,
“potential” or “continue” or similar terms or the negative of these
terms. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
The Company has no obligation to update these forward-looking
statements.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESCONSOLIDATED
STATEMENTS OF INCOME(Dollars in thousands, except
per share data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the twelve months ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Interest and
Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans |
|
$ |
64,316 |
|
|
$ |
62,825 |
|
|
$ |
60,722 |
|
|
$ |
251,744 |
|
|
$ |
232,719 |
|
Interest and dividends on
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
5,528 |
|
|
|
6,287 |
|
|
|
6,376 |
|
|
|
25,535 |
|
|
|
23,022 |
|
Dividends |
|
|
17 |
|
|
|
18 |
|
|
|
18 |
|
|
|
73 |
|
|
|
67 |
|
Other interest income |
|
|
318 |
|
|
|
259 |
|
|
|
317 |
|
|
|
1,604 |
|
|
|
1,190 |
|
Total interest and dividend income |
|
|
70,179 |
|
|
|
69,389 |
|
|
|
67,433 |
|
|
|
278,956 |
|
|
|
256,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
21,517 |
|
|
|
22,244 |
|
|
|
20,174 |
|
|
|
88,057 |
|
|
|
64,497 |
|
Other interest expense |
|
|
7,483 |
|
|
|
8,196 |
|
|
|
6,623 |
|
|
|
28,959 |
|
|
|
25,095 |
|
Total interest expense |
|
|
29,000 |
|
|
|
30,440 |
|
|
|
26,797 |
|
|
|
117,016 |
|
|
|
89,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income |
|
|
41,179 |
|
|
|
38,949 |
|
|
|
40,636 |
|
|
|
161,940 |
|
|
|
167,406 |
|
Provision (benefit) for loan
losses |
|
|
(318 |
) |
|
|
683 |
|
|
|
422 |
|
|
|
2,811 |
|
|
|
575 |
|
Net Interest
Income After Provision for Loan Losses |
|
|
41,497 |
|
|
|
38,266 |
|
|
|
40,214 |
|
|
|
159,129 |
|
|
|
166,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking services fee
income |
|
|
844 |
|
|
|
847 |
|
|
|
1,065 |
|
|
|
3,723 |
|
|
|
4,030 |
|
Net loss on sale of
securities |
|
|
— |
|
|
|
— |
|
|
|
(1,920 |
) |
|
|
(15 |
) |
|
|
(1,920 |
) |
Net gain on sale of loans |
|
|
489 |
|
|
|
204 |
|
|
|
— |
|
|
|
870 |
|
|
|
168 |
|
Net gain on sale of
assets |
|
|
— |
|
|
|
— |
|
|
|
1,141 |
|
|
|
770 |
|
|
|
1,141 |
|
Net gain (loss) from fair
value adjustments |
|
|
807 |
|
|
|
(2,124 |
) |
|
|
(3,585 |
) |
|
|
(5,353 |
) |
|
|
(4,122 |
) |
Federal Home Loan Bank of New
York stock dividends |
|
|
1,026 |
|
|
|
834 |
|
|
|
946 |
|
|
|
3,589 |
|
|
|
3,576 |
|
Life insurance proceeds |
|
|
419 |
|
|
|
— |
|
|
|
— |
|
|
|
462 |
|
|
|
2,998 |
|
Bank owned life insurance |
|
|
984 |
|
|
|
1,000 |
|
|
|
779 |
|
|
|
3,534 |
|
|
|
3,099 |
|
Other income |
|
|
469 |
|
|
|
278 |
|
|
|
588 |
|
|
|
1,891 |
|
|
|
1,367 |
|
Total non-interest income |
|
|
5,038 |
|
|
|
1,039 |
|
|
|
(986 |
) |
|
|
9,471 |
|
|
|
10,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
17,470 |
|
|
|
15,461 |
|
|
|
15,094 |
|
|
|
67,765 |
|
|
|
64,560 |
|
Occupancy and equipment |
|
|
2,950 |
|
|
|
2,847 |
|
|
|
2,551 |
|
|
|
11,328 |
|
|
|
10,079 |
|
Professional services |
|
|
2,120 |
|
|
|
2,167 |
|
|
|
1,821 |
|
|
|
8,358 |
|
|
|
8,360 |
|
FDIC deposit insurance |
|
|
306 |
|
|
|
(589 |
) |
|
|
472 |
|
|
|
869 |
|
|
|
2,115 |
|
Data processing |
|
|
1,476 |
|
|
|
1,490 |
|
|
|
1,409 |
|
|
|
5,878 |
|
|
|
5,663 |
|
Depreciation and
amortization |
|
|
1,476 |
|
|
|
1,439 |
|
|
|
1,464 |
|
|
|
5,930 |
|
|
|
5,792 |
|
Other real estate
owned/foreclosure expense (benefit) |
|
|
59 |
|
|
|
48 |
|
|
|
(128 |
) |
|
|
204 |
|
|
|
(94 |
) |
Net gain from sales of real
estate owned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(27 |
) |
Other operating expenses |
|
|
3,790 |
|
|
|
3,182 |
|
|
|
3,077 |
|
|
|
14,937 |
|
|
|
15,235 |
|
Total non-interest expense |
|
|
29,647 |
|
|
|
26,045 |
|
|
|
25,760 |
|
|
|
115,269 |
|
|
|
111,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before
Income Taxes |
|
|
16,888 |
|
|
|
13,260 |
|
|
|
13,468 |
|
|
|
53,331 |
|
|
|
65,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal |
|
|
3,058 |
|
|
|
2,457 |
|
|
|
349 |
|
|
|
10,439 |
|
|
|
8,574 |
|
State and local |
|
|
899 |
|
|
|
79 |
|
|
|
697 |
|
|
|
1,613 |
|
|
|
1,821 |
|
Total taxes |
|
|
3,957 |
|
|
|
2,536 |
|
|
|
1,046 |
|
|
|
12,052 |
|
|
|
10,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
$ |
12,931 |
|
|
$ |
10,724 |
|
|
$ |
12,422 |
|
|
$ |
41,279 |
|
|
$ |
55,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
|
$ |
0.45 |
|
|
$ |
0.37 |
|
|
$ |
0.44 |
|
|
$ |
1.44 |
|
|
$ |
1.92 |
|
Diluted earnings per common
share |
|
$ |
0.45 |
|
|
$ |
0.37 |
|
|
$ |
0.44 |
|
|
$ |
1.44 |
|
|
$ |
1.92 |
|
Dividends per common
share |
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.84 |
|
|
$ |
0.80 |
|
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESCONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION(Dollars in
thousands, except per share data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2019 |
|
2019 |
|
2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
49,787 |
|
|
$ |
86,989 |
|
|
$ |
118,561 |
|
Securities
held-to-maturity: |
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
7,934 |
|
|
|
7,939 |
|
|
|
7,953 |
|
Other securities |
|
|
50,954 |
|
|
|
52,101 |
|
|
|
24,065 |
|
Securities available for
sale: |
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
523,849 |
|
|
|
579,010 |
|
|
|
557,953 |
|
Other securities |
|
|
248,651 |
|
|
|
246,465 |
|
|
|
264,702 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
|
2,238,591 |
|
|
|
2,232,305 |
|
|
|
2,269,048 |
|
Commercial real estate |
|
|
1,582,008 |
|
|
|
1,559,581 |
|
|
|
1,542,547 |
|
One-to-four family ― mixed-use property |
|
|
592,471 |
|
|
|
587,100 |
|
|
|
577,741 |
|
One-to-four family ― residential |
|
|
188,216 |
|
|
|
184,432 |
|
|
|
190,350 |
|
Co-operative apartments |
|
|
8,663 |
|
|
|
9,089 |
|
|
|
8,498 |
|
Construction |
|
|
67,754 |
|
|
|
64,234 |
|
|
|
50,600 |
|
Small Business Administration |
|
|
14,445 |
|
|
|
13,982 |
|
|
|
15,210 |
|
Taxi medallion |
|
|
3,309 |
|
|
|
3,513 |
|
|
|
4,539 |
|
Commercial business and other |
|
|
1,061,478 |
|
|
|
1,096,164 |
|
|
|
877,763 |
|
Net unamortized premiums and unearned loan fees |
|
|
15,271 |
|
|
|
15,363 |
|
|
|
15,188 |
|
Allowance for loan losses |
|
|
(21,751 |
) |
|
|
(22,035 |
) |
|
|
(20,945 |
) |
Net loans |
|
|
5,750,455 |
|
|
|
5,743,728 |
|
|
|
5,530,539 |
|
Interest and dividends
receivable |
|
|
25,722 |
|
|
|
26,566 |
|
|
|
25,485 |
|
Bank premises and equipment,
net |
|
|
28,676 |
|
|
|
28,146 |
|
|
|
30,418 |
|
Federal Home Loan Bank of New
York stock |
|
|
56,921 |
|
|
|
65,280 |
|
|
|
57,282 |
|
Bank owned life insurance |
|
|
157,713 |
|
|
|
158,604 |
|
|
|
131,788 |
|
Goodwill |
|
|
16,127 |
|
|
|
16,127 |
|
|
|
16,127 |
|
Other real estate owned,
net |
|
|
239 |
|
|
|
239 |
|
|
|
— |
|
Right of use asset |
|
|
41,254 |
|
|
|
42,400 |
|
|
|
— |
|
Other assets |
|
|
59,494 |
|
|
|
57,301 |
|
|
|
69,303 |
|
Total assets |
|
$ |
7,017,776 |
|
|
$ |
7,110,895 |
|
|
$ |
6,834,176 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Due to depositors: |
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
435,072 |
|
|
$ |
421,786 |
|
|
$ |
413,747 |
|
Certificate of deposit accounts |
|
|
1,437,890 |
|
|
|
1,506,376 |
|
|
|
1,563,310 |
|
Savings accounts |
|
|
191,485 |
|
|
|
193,497 |
|
|
|
210,022 |
|
Money market accounts |
|
|
1,592,011 |
|
|
|
1,329,156 |
|
|
|
1,427,992 |
|
NOW accounts |
|
|
1,365,591 |
|
|
|
1,461,694 |
|
|
|
1,300,852 |
|
Total deposits |
|
|
5,022,049 |
|
|
|
4,912,509 |
|
|
|
4,915,923 |
|
Mortgagors' escrow
deposits |
|
|
44,375 |
|
|
|
61,803 |
|
|
|
44,861 |
|
Borrowed funds |
|
|
1,237,231 |
|
|
|
1,422,440 |
|
|
|
1,250,843 |
|
Operating lease liability |
|
|
49,367 |
|
|
|
50,626 |
|
|
|
— |
|
Other liabilities |
|
|
85,082 |
|
|
|
95,125 |
|
|
|
73,085 |
|
Total liabilities |
|
|
6,438,104 |
|
|
|
6,542,503 |
|
|
|
6,284,712 |
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
Preferred stock (5,000,000
shares authorized; none issued) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock ($0.01 par value;
100,000,000 shares authorized; 31,530,595 shares issued at December
31, 2019, September 30, 2019 and December 31, 2018; 28,157,206
shares, 28,157,206 shares and 27,983,637 shares outstanding at
December 31, 2019, September 30, 2019 and December 31, 2018,
respectively) |
|
|
315 |
|
|
|
315 |
|
|
|
315 |
|
Additional paid-in
capital |
|
|
226,691 |
|
|
|
225,471 |
|
|
|
222,720 |
|
Treasury stock (3,373,389
shares, 3,373,389 shares and 3,546,958 shares at December 31, 2019,
September 30, 2019 and December 31, 2018, respectively) |
|
|
(71,487 |
) |
|
|
(71,487 |
) |
|
|
(75,146 |
) |
Retained earnings |
|
|
433,960 |
|
|
|
427,062 |
|
|
|
414,327 |
|
Accumulated other
comprehensive loss, net of taxes |
|
|
(9,807 |
) |
|
|
(12,969 |
) |
|
|
(12,752 |
) |
Total stockholders' equity |
|
|
579,672 |
|
|
|
568,392 |
|
|
|
549,464 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
7,017,776 |
|
|
$ |
7,110,895 |
|
|
$ |
6,834,176 |
|
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESSELECTED
CONSOLIDATED FINANCIAL DATA(Dollars in thousands,
except per share data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
|
At or for the twelve months ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Per Share
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
0.45 |
|
$ |
0.37 |
|
$ |
0.44 |
|
$ |
1.44 |
|
$ |
1.92 |
|
Diluted earnings per
share |
|
$ |
0.45 |
|
$ |
0.37 |
|
$ |
0.44 |
|
$ |
1.44 |
|
$ |
1.92 |
|
Average number of shares
outstanding for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share computation |
|
|
28,723,077 |
|
|
28,730,161 |
|
|
28,422,215 |
|
|
28,709,106 |
|
|
28,709,378 |
|
Diluted earnings per common share computation |
|
|
28,723,077 |
|
|
28,730,161 |
|
|
28,422,517 |
|
|
28,709,109 |
|
|
28,709,833 |
|
Shares outstanding |
|
|
28,157,206 |
|
|
28,157,206 |
|
|
27,983,637 |
|
|
28,157,206 |
|
|
27,983,637 |
|
Book value per common share
(1) |
|
$ |
20.59 |
|
$ |
20.19 |
|
$ |
19.64 |
|
$ |
20.59 |
|
$ |
19.64 |
|
Tangible book value per common
share (2) |
|
$ |
20.02 |
|
$ |
19.62 |
|
$ |
19.07 |
|
$ |
20.02 |
|
$ |
19.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
579,672 |
|
$ |
568,392 |
|
$ |
549,464 |
|
$ |
579,672 |
|
$ |
549,464 |
|
Tangible stockholders'
equity |
|
|
563,837 |
|
|
552,551 |
|
|
533,627 |
|
|
563,837 |
|
|
533,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans, net |
|
$ |
5,726,635 |
|
$ |
5,645,503 |
|
$ |
5,438,418 |
|
$ |
5,621,033 |
|
$ |
5,316,968 |
|
Total interest-earning
assets |
|
|
6,677,325 |
|
|
6,589,498 |
|
|
6,364,456 |
|
|
6,582,473 |
|
|
6,194,248 |
|
Total assets |
|
|
7,057,094 |
|
|
6,972,403 |
|
|
6,681,161 |
|
|
6,947,881 |
|
|
6,504,598 |
|
Total due to depositors |
|
|
4,527,645 |
|
|
4,422,050 |
|
|
4,453,200 |
|
|
4,535,292 |
|
|
4,288,868 |
|
Total interest-bearing
liabilities |
|
|
5,912,284 |
|
|
5,877,740 |
|
|
5,654,560 |
|
|
5,856,953 |
|
|
5,517,552 |
|
Stockholders' equity |
|
|
567,461 |
|
|
564,255 |
|
|
541,067 |
|
|
561,289 |
|
|
534,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.73 |
% |
|
0.62 |
% |
|
0.74 |
% |
|
0.59 |
% |
|
0.85 |
% |
Return on average equity |
|
|
9.11 |
|
|
7.60 |
|
|
9.18 |
|
|
7.35 |
|
|
10.30 |
|
Yield on average
interest-earning assets (4) |
|
|
4.21 |
|
|
4.22 |
|
|
4.25 |
|
|
4.25 |
|
|
4.16 |
|
Cost of average
interest-bearing liabilities |
|
|
1.96 |
|
|
2.07 |
|
|
1.90 |
|
|
2.00 |
|
|
1.62 |
|
Cost of funds |
|
|
1.83 |
|
|
1.94 |
|
|
1.77 |
|
|
1.87 |
|
|
1.52 |
|
Net interest rate spread
during period (4) |
|
|
2.25 |
|
|
2.15 |
|
|
2.35 |
|
|
2.25 |
|
|
2.54 |
|
Net interest margin (4) |
|
|
2.48 |
|
|
2.37 |
|
|
2.57 |
|
|
2.47 |
|
|
2.72 |
|
Non-interest expense to
average assets |
|
|
1.68 |
|
|
1.49 |
|
|
1.54 |
|
|
1.66 |
|
|
1.72 |
|
Efficiency ratio (5) |
|
|
65.00 |
|
|
58.87 |
|
|
58.53 |
|
|
63.89 |
|
|
62.12 |
|
Average interest-earning
assets to average interest-bearing liabilities |
|
|
1.13 |
X |
|
1.12 |
X |
|
1.13 |
X |
|
1.12 |
X |
|
1.12 |
X |
(1) Calculated by dividing stockholders’
equity by shares outstanding.(2) Calculated by dividing
tangible stockholders’ common equity, a non-GAAP measure, by shares
outstanding. Tangible stockholders’ common equity is stockholders’
equity less intangible assets (goodwill, net of deferred taxes).
See “Calculation of Tangible Stockholders’ Common Equity to
Tangible Assets”.(3) Ratios are presented on an annualized
basis, where appropriate.(4) Yields are calculated on the tax
equivalent basis using the statutory federal income tax rate of 21%
for the periods presented.(5) Efficiency ratio, a non-GAAP
measure, was calculated by dividing non-interest expense (excluding
accelerated employee benefits upon officer’s death, merger expense,
OREO expense and the net gain/loss from the sale of OREO) by the
total of net interest income (excluding net losses from fair value
adjustments on qualifying hedges) and non-interest income
(excluding net gains and losses from the sale of securities, assets
and fair value adjustments and life insurance proceeds).
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESSELECTED
CONSOLIDATED FINANCIAL DATA(Dollars in
thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
At or for the twelve |
|
At or for the twelve |
|
|
|
months ended |
|
months ended |
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
Selected Financial Ratios and Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital ratios (for
Flushing Financial Corporation): |
|
|
|
|
|
|
|
Tier 1 capital |
|
$ |
615,500 |
|
$ |
586,582 |
|
Common equity Tier 1 capital |
|
|
572,651 |
|
|
546,230 |
|
Total risk-based capital |
|
|
712,251 |
|
|
682,527 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital (well capitalized = 5%) |
|
|
8.73 |
% |
|
8.74 |
% |
Common equity Tier 1 risk-based capital (well capitalized =
6.5%) |
|
|
10.95 |
|
|
10.98 |
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
|
|
11.77 |
|
|
11.79 |
|
Total risk-based capital (well capitalized = 10.0%) |
|
|
13.62 |
|
|
13.72 |
|
|
|
|
|
|
|
|
|
Regulatory capital ratios (for
Flushing Bank only): |
|
|
|
|
|
|
|
Tier 1 capital |
|
$ |
680,749 |
|
$ |
660,782 |
|
Common equity Tier 1 capital |
|
|
680,749 |
|
|
660,782 |
|
Total risk-based capital |
|
|
702,500 |
|
|
681,727 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital (well capitalized = 5%) |
|
|
9.65 |
% |
|
9.85 |
% |
Common equity Tier 1 risk-based capital (well capitalized =
6.5%) |
|
|
13.02 |
|
|
13.28 |
|
Tier 1 risk-based capital (well capitalized = 8.0%) |
|
|
13.02 |
|
|
13.28 |
|
Total risk-based capital (well capitalized = 10.0%) |
|
|
13.43 |
|
|
13.70 |
|
|
|
|
|
|
|
|
|
Capital ratios: |
|
|
|
|
|
|
|
Average equity to average assets |
|
|
8.08 |
% |
|
8.22 |
% |
Equity to total assets |
|
|
8.26 |
|
|
8.04 |
|
Tangible common equity to tangible assets (1) |
|
|
8.05 |
|
|
7.83 |
|
|
|
|
|
|
|
|
|
Asset quality: |
|
|
|
|
|
|
|
Non-accrual loans (2) |
|
$ |
12,813 |
|
$ |
16,253 |
|
Non-performing loans |
|
|
13,258 |
|
|
16,253 |
|
Non-performing assets |
|
|
13,532 |
|
|
16,288 |
|
Net charge-offs |
|
|
2,005 |
|
|
(19) |
|
|
|
|
|
|
|
|
|
Asset quality ratios: |
|
|
|
|
|
|
|
Non-performing loans to gross loans |
|
|
0.23 |
% |
|
0.29 |
% |
Non-performing assets to total assets |
|
|
0.19 |
|
|
0.24 |
|
Allowance for loan losses to gross loans |
|
|
0.38 |
|
|
0.38 |
|
Allowance for loan losses to non-performing assets |
|
|
160.73 |
|
|
128.60 |
|
Allowance for loan losses to non-performing loans |
|
|
164.05 |
|
|
128.87 |
|
|
|
|
|
|
|
|
|
Full-service customer
facilities |
|
|
20 |
|
|
19 |
|
(1) See “Calculation of Tangible Stockholders’ Common
Equity to Tangible Assets”.(2) Excludes performing non-accrual
TDR loans.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESNET INTEREST
MARGIN(Dollars in thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
|
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans, net |
|
$ |
4,628,854 |
|
$ |
51,927 |
|
4.49 |
% |
$ |
4,598,898 |
|
$ |
50,462 |
|
4.39 |
% |
$ |
4,555,895 |
|
$ |
49,789 |
|
4.37 |
% |
Other loans, net |
|
|
1,097,781 |
|
|
12,389 |
|
4.51 |
|
|
1,046,605 |
|
|
12,363 |
|
4.72 |
|
|
882,523 |
|
|
10,933 |
|
4.96 |
|
Total loans, net (1) (2) |
|
|
5,726,635 |
|
|
64,316 |
|
4.49 |
|
|
5,645,503 |
|
|
62,825 |
|
4.45 |
|
|
5,438,418 |
|
|
60,722 |
|
4.47 |
|
Taxable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
555,023 |
|
|
3,230 |
|
2.33 |
|
|
574,756 |
|
|
3,765 |
|
2.62 |
|
|
558,693 |
|
|
4,004 |
|
2.87 |
|
Other securities |
|
|
244,075 |
|
|
1,774 |
|
2.91 |
|
|
244,757 |
|
|
1,982 |
|
3.24 |
|
|
184,592 |
|
|
1,586 |
|
3.44 |
|
Total taxable securities |
|
|
799,098 |
|
|
5,004 |
|
2.50 |
|
|
819,513 |
|
|
5,747 |
|
2.81 |
|
|
743,285 |
|
|
5,590 |
|
3.01 |
|
Tax-exempt securities: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other securities |
|
|
63,825 |
|
|
685 |
|
4.29 |
|
|
65,709 |
|
|
706 |
|
4.30 |
|
|
114,079 |
|
|
1,018 |
|
3.57 |
|
Total tax-exempt securities |
|
|
63,825 |
|
|
685 |
|
4.29 |
|
|
65,709 |
|
|
706 |
|
4.30 |
|
|
114,079 |
|
|
1,018 |
|
3.57 |
|
Interest-earning deposits and federal funds sold |
|
|
87,767 |
|
|
318 |
|
1.45 |
|
|
58,773 |
|
|
259 |
|
1.76 |
|
|
68,674 |
|
|
317 |
|
1.85 |
|
Total interest-earning assets |
|
|
6,677,325 |
|
|
70,323 |
|
4.21 |
|
|
6,589,498 |
|
|
69,537 |
|
4.22 |
|
|
6,364,456 |
|
|
67,647 |
|
4.25 |
|
Other assets |
|
|
379,769 |
|
|
|
|
|
|
|
382,905 |
|
|
|
|
|
|
|
316,705 |
|
|
|
|
|
|
Total assets |
|
$ |
7,057,094 |
|
|
|
|
|
|
$ |
6,972,403 |
|
|
|
|
|
|
$ |
6,681,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
192,818 |
|
|
325 |
|
0.67 |
|
$ |
194,736 |
|
|
344 |
|
0.71 |
|
$ |
213,091 |
|
|
392 |
|
0.74 |
|
NOW accounts |
|
|
1,362,151 |
|
|
5,227 |
|
1.53 |
|
|
1,347,145 |
|
|
5,654 |
|
1.68 |
|
|
1,312,834 |
|
|
4,968 |
|
1.51 |
|
Money market accounts |
|
|
1,456,676 |
|
|
7,165 |
|
1.97 |
|
|
1,306,634 |
|
|
6,859 |
|
2.10 |
|
|
1,348,873 |
|
|
6,523 |
|
1.93 |
|
Certificate of deposit accounts |
|
|
1,516,000 |
|
|
8,752 |
|
2.31 |
|
|
1,573,535 |
|
|
9,321 |
|
2.37 |
|
|
1,578,402 |
|
|
8,276 |
|
2.10 |
|
Total due to depositors |
|
|
4,527,645 |
|
|
21,469 |
|
1.90 |
|
|
4,422,050 |
|
|
22,178 |
|
2.01 |
|
|
4,453,200 |
|
|
20,159 |
|
1.81 |
|
Mortgagors' escrow accounts |
|
|
74,751 |
|
|
48 |
|
0.26 |
|
|
60,084 |
|
|
66 |
|
0.44 |
|
|
71,108 |
|
|
15 |
|
0.08 |
|
Total interest-bearing deposits |
|
|
4,602,396 |
|
|
21,517 |
|
1.87 |
|
|
4,482,134 |
|
|
22,244 |
|
1.99 |
|
|
4,524,308 |
|
|
20,174 |
|
1.78 |
|
Borrowings |
|
|
1,309,888 |
|
|
7,483 |
|
2.29 |
|
|
1,395,606 |
|
|
8,196 |
|
2.35 |
|
|
1,130,252 |
|
|
6,623 |
|
2.34 |
|
Total interest-bearing liabilities |
|
|
5,912,284 |
|
|
29,000 |
|
1.96 |
|
|
5,877,740 |
|
|
30,440 |
|
2.07 |
|
|
5,654,560 |
|
|
26,797 |
|
1.90 |
|
Non interest-bearing demand deposits |
|
|
435,241 |
|
|
|
|
|
|
|
400,762 |
|
|
|
|
|
|
|
406,501 |
|
|
|
|
|
|
Other liabilities |
|
|
142,108 |
|
|
|
|
|
|
|
129,646 |
|
|
|
|
|
|
|
79,033 |
|
|
|
|
|
|
Total liabilities |
|
|
6,489,633 |
|
|
|
|
|
|
|
6,408,148 |
|
|
|
|
|
|
|
6,140,094 |
|
|
|
|
|
|
Equity |
|
|
567,461 |
|
|
|
|
|
|
|
564,255 |
|
|
|
|
|
|
|
541,067 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
7,057,094 |
|
|
|
|
|
|
$ |
6,972,403 |
|
|
|
|
|
|
$ |
6,681,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / net
interest rate spread (tax equivalent) (3) |
|
|
|
|
$ |
41,323 |
|
2.25 |
% |
|
|
|
$ |
39,097 |
|
2.15 |
% |
|
|
|
$ |
40,850 |
|
2.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets /
net interest margin (tax equivalent) |
|
$ |
765,041 |
|
|
|
|
2.48 |
% |
$ |
711,758 |
|
|
|
|
2.37 |
% |
$ |
709,896 |
|
|
|
|
2.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
|
|
|
|
|
|
|
1.13 |
X |
|
|
|
|
|
|
1.12 |
X |
|
|
|
|
|
|
1.13 |
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 $0.3
million, $0.9 million and $0.5 million for the three months ended
December 31, 2019, September 30, 2019 and December 31, 2018,
respectively.(2) Loan interest income includes net gains from
fair value adjustments on qualifying hedges of $1.0 million for the
three months ended December 31, 2019 and net losses of $1.3 million
for the three months ended September 30, 2019.(3) Interest and
yields are calculated on the tax equivalent basis using the
statutory federal income tax rate of 21% for the three months ended
December 31, 2019, September 30, 2019 and December 31, 2018
totaling $0.1 million, $0.1 million and $0.2 million,
respectively.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESNET INTEREST
MARGIN(Dollars in thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended |
|
|
|
December 31, 2019 |
|
December 31, 2018 |
|
|
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
|
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
Interest-earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans, net |
|
$ |
4,609,439 |
|
$ |
203,440 |
|
|
4.41 |
% |
$ |
4,494,210 |
|
$ |
193,186 |
|
4.30 |
% |
Other loans, net |
|
|
1,011,594 |
|
|
48,304 |
|
|
4.78 |
|
|
822,758 |
|
|
39,533 |
|
4.80 |
|
Total loans, net (1) (2) |
|
|
5,621,033 |
|
|
251,744 |
|
|
4.48 |
|
|
5,316,968 |
|
|
232,719 |
|
4.38 |
|
Taxable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
572,223 |
|
|
15,468 |
|
|
2.70 |
|
|
539,771 |
|
|
15,065 |
|
2.79 |
|
Other securities |
|
|
243,324 |
|
|
8,102 |
|
|
3.33 |
|
|
140,461 |
|
|
4,658 |
|
3.32 |
|
Total taxable securities |
|
|
815,547 |
|
|
23,570 |
|
|
2.89 |
|
|
680,232 |
|
|
19,723 |
|
2.90 |
|
Tax-exempt securities: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other securities |
|
|
60,971 |
|
|
2,580 |
|
|
4.23 |
|
|
121,412 |
|
|
4,261 |
|
3.51 |
|
Total tax-exempt securities |
|
|
60,971 |
|
|
2,580 |
|
|
4.23 |
|
|
121,412 |
|
|
4,261 |
|
3.51 |
|
Interest-earning deposits and federal funds sold |
|
|
84,922 |
|
|
1,604 |
|
|
1.89 |
|
|
75,636 |
|
|
1,190 |
|
1.57 |
|
Total interest-earning assets |
|
|
6,582,473 |
|
|
279,498 |
|
|
4.25 |
|
|
6,194,248 |
|
|
257,893 |
|
4.16 |
|
Other assets |
|
|
365,408 |
|
|
|
|
|
|
|
|
310,350 |
|
|
|
|
|
|
Total assets |
|
$ |
6,947,881 |
|
|
|
|
|
|
|
$ |
6,504,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
198,374 |
|
|
1,378 |
|
|
0.69 |
|
$ |
233,392 |
|
|
1,370 |
|
0.59 |
|
NOW accounts |
|
|
1,434,440 |
|
|
23,553 |
|
|
1.64 |
|
|
1,407,945 |
|
|
15,896 |
|
1.13 |
|
Money market accounts |
|
|
1,370,038 |
|
|
27,819 |
|
|
2.03 |
|
|
1,164,505 |
|
|
18,707 |
|
1.61 |
|
Certificate of deposit accounts |
|
|
1,532,440 |
|
|
35,078 |
|
|
2.29 |
|
|
1,483,026 |
|
|
28,310 |
|
1.91 |
|
Total due to depositors |
|
|
4,535,292 |
|
|
87,828 |
|
|
1.94 |
|
|
4,288,868 |
|
|
64,283 |
|
1.50 |
|
Mortgagors' escrow accounts |
|
|
70,209 |
|
|
229 |
|
|
0.33 |
|
|
66,255 |
|
|
214 |
|
0.32 |
|
Total interest-bearing deposits |
|
|
4,605,501 |
|
|
88,057 |
|
|
1.91 |
|
|
4,355,123 |
|
|
64,497 |
|
1.48 |
|
Borrowings |
|
|
1,251,452 |
|
|
28,959 |
|
|
2.31 |
|
|
1,162,429 |
|
|
25,095 |
|
2.16 |
|
Total interest-bearing liabilities |
|
|
5,856,953 |
|
|
117,016 |
|
|
2.00 |
|
|
5,517,552 |
|
|
89,592 |
|
1.62 |
|
Non interest-bearing demand
deposits |
|
|
407,450 |
|
|
|
|
|
|
|
|
380,889 |
|
|
|
|
|
|
Other liabilities |
|
|
122,189 |
|
|
|
|
|
|
|
|
71,422 |
|
|
|
|
|
|
Total liabilities |
|
|
6,386,592 |
|
|
|
|
|
|
|
|
5,969,863 |
|
|
|
|
|
|
Equity |
|
|
561,289 |
|
|
|
|
|
|
|
|
534,735 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
6,947,881 |
|
|
|
|
|
|
|
$ |
6,504,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income / net
interest rate spread (tax equivalent) (3) |
|
|
|
|
$ |
162,482 |
|
|
2.25 |
% |
|
|
|
$ |
168,301 |
|
2.54 |
% |
Net interest-earning assets /
net interest margin (tax equivalent) |
|
$ |
725,520 |
|
|
|
|
|
2.47 |
% |
$ |
676,696 |
|
|
|
|
2.72 |
% |
Ratio of interest-earning
assets to interest-bearing liabilities |
|
|
|
|
|
|
|
|
1.12 |
X |
|
|
|
|
|
|
1.12 |
X |
(1) Loan interest income includes loan fee
income (which includes net amortization of deferred fees and costs,
late charges, and prepayment penalties) of approximately $2.0
million and $2.1 million for the year ended December 31, 2019 and
2018, respectively.(2) Loan interest income includes net
losses from fair value adjustments on qualifying hedges of $1.7
million and none for the year ended December 31, 2019 and 2018,
respectively.(3) Interest and yields are calculated on the tax
equivalent basis using the statutory federal income tax rate of 21%
for the year ended December 31, 2019 and 2018 totaling $0.5 million
and $0.9 million, respectively.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESDEPOSIT
COMPOSITION(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 2019 vs. |
|
|
|
|
December 2019 vs. |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
September 2019 |
|
December 31, |
|
December 2018 |
|
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
% Change |
|
2018 |
|
% Change |
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
435,072 |
|
$ |
421,786 |
|
$ |
413,813 |
|
$ |
401,064 |
|
3.1 |
% |
$ |
413,747 |
|
5.2 |
% |
Interest bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate of deposit accounts |
|
|
1,437,890 |
|
|
1,506,376 |
|
|
1,544,117 |
|
|
1,511,770 |
|
(4.5) |
% |
|
1,563,310 |
|
(8.0) |
% |
Savings accounts |
|
|
191,485 |
|
|
193,497 |
|
|
196,820 |
|
|
201,811 |
|
(1.0) |
% |
|
210,022 |
|
(8.8) |
% |
Money market accounts |
|
|
1,592,011 |
|
|
1,329,156 |
|
|
1,302,153 |
|
|
1,352,843 |
|
19.8 |
% |
|
1,427,992 |
|
11.5 |
% |
NOW accounts |
|
|
1,365,591 |
|
|
1,461,694 |
|
|
1,368,813 |
|
|
1,542,606 |
|
(6.6) |
% |
|
1,300,852 |
|
5.0 |
% |
Total interest-bearing deposits |
|
|
4,586,977 |
|
|
4,490,723 |
|
|
4,411,903 |
|
|
4,609,030 |
|
2.1 |
% |
|
4,502,176 |
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
$ |
5,022,049 |
|
$ |
4,912,509 |
|
$ |
4,825,716 |
|
$ |
5,010,094 |
|
2.2 |
% |
$ |
4,915,923 |
|
2.2 |
% |
FLUSHING FINANCIAL CORPORATION
and
SUBSIDIARIESLOANS(Unaudited)
Loan Closings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the twelve months ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(In
thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Multi-family residential |
|
$ |
104,310 |
|
$ |
60,454 |
|
$ |
85,095 |
|
$ |
247,607 |
|
$ |
339,732 |
Commercial real estate |
|
|
55,047 |
|
|
66,648 |
|
|
95,772 |
|
|
178,336 |
|
|
270,785 |
One-to-four family – mixed-use
property |
|
|
18,653 |
|
|
18,167 |
|
|
28,924 |
|
|
66,128 |
|
|
74,156 |
One-to-four family –
residential |
|
|
5,833 |
|
|
7,421 |
|
|
7,356 |
|
|
25,024 |
|
|
42,660 |
Co-operative apartments |
|
|
— |
|
|
1,817 |
|
|
948 |
|
|
2,117 |
|
|
2,448 |
Construction |
|
|
3,542 |
|
|
5,761 |
|
|
8,968 |
|
|
33,919 |
|
|
39,595 |
Small Business
Administration |
|
|
721 |
|
|
121 |
|
|
1,304 |
|
|
3,426 |
|
|
3,843 |
Commercial business and
other |
|
|
81,630 |
|
|
237,754 |
|
|
116,365 |
|
|
605,743 |
|
|
477,572 |
Total |
|
$ |
269,736 |
|
$ |
398,143 |
|
$ |
344,732 |
|
$ |
1,162,300 |
|
$ |
1,250,791 |
Loan Composition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 2019 vs. |
|
|
|
|
December 2019 vs. |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
September 2019 |
|
December 31, |
|
December 2018 |
|
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
% Change |
|
2018 |
|
% Change |
|
Loans held for
investment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
$ |
2,238,591 |
|
|
$ |
2,232,305 |
|
|
$ |
2,263,875 |
|
|
$ |
2,256,447 |
|
|
0.3 |
|
% |
$ |
2,269,048 |
|
|
(1.3 |
) |
% |
Commercial real estate |
|
|
1,582,008 |
|
|
|
1,559,581 |
|
|
|
1,524,693 |
|
|
|
1,529,001 |
|
|
1.4 |
|
% |
|
1,542,547 |
|
|
2.6 |
|
% |
One-to-four family ― mixed-use
property |
|
|
592,471 |
|
|
|
587,100 |
|
|
|
582,264 |
|
|
|
582,049 |
|
|
0.9 |
|
% |
|
577,741 |
|
|
2.5 |
|
% |
One-to-four family ―
residential |
|
|
188,216 |
|
|
|
184,432 |
|
|
|
184,024 |
|
|
|
188,615 |
|
|
2.1 |
|
% |
|
190,350 |
|
|
(1.1 |
) |
% |
Co-operative apartments |
|
|
8,663 |
|
|
|
9,089 |
|
|
|
8,137 |
|
|
|
7,903 |
|
|
(4.7 |
) |
% |
|
8,498 |
|
|
1.9 |
|
% |
Construction |
|
|
67,754 |
|
|
|
64,234 |
|
|
|
58,503 |
|
|
|
54,933 |
|
|
5.5 |
|
% |
|
50,600 |
|
|
33.9 |
|
% |
Small Business
Administration |
|
|
14,445 |
|
|
|
13,982 |
|
|
|
14,511 |
|
|
|
15,188 |
|
|
3.3 |
|
% |
|
15,210 |
|
|
(5.0 |
) |
% |
Taxi medallion |
|
|
3,309 |
|
|
|
3,513 |
|
|
|
3,555 |
|
|
|
3,891 |
|
|
(5.8 |
) |
% |
|
4,539 |
|
|
(27.1 |
) |
% |
Commercial business and
other |
|
|
1,061,478 |
|
|
|
1,096,164 |
|
|
|
983,573 |
|
|
|
935,297 |
|
|
(3.2 |
) |
% |
|
877,763 |
|
|
20.9 |
|
% |
Net unamortized premiums and
unearned loan fees |
|
|
15,271 |
|
|
|
15,363 |
|
|
|
15,278 |
|
|
|
15,422 |
|
|
(0.6 |
) |
% |
|
15,188 |
|
|
0.5 |
|
% |
Allowance for loan losses |
|
|
(21,751 |
) |
|
|
(22,035 |
) |
|
|
(21,510 |
) |
|
|
(21,015 |
) |
|
(1.3 |
) |
% |
|
(20,945 |
) |
|
3.8 |
|
% |
Net loans |
|
$ |
5,750,455 |
|
|
$ |
5,743,728 |
|
|
$ |
5,616,903 |
|
|
$ |
5,567,731 |
|
|
0.1 |
|
% |
$ |
5,530,539 |
|
|
4.0 |
|
% |
Net Loans Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Loans originated and
purchased |
|
$ |
269,736 |
|
|
$ |
398,143 |
|
|
$ |
296,397 |
|
|
$ |
198,024 |
|
|
$ |
344,732 |
|
Principal reductions |
|
|
(255,977 |
) |
|
|
(266,894 |
) |
|
|
(243,263 |
) |
|
|
(158,815 |
) |
|
|
(173,061 |
) |
Loans sold |
|
|
(7,129 |
) |
|
|
(3,553 |
) |
|
|
(1,970 |
) |
|
|
(1,043 |
) |
|
|
— |
|
Loan charge-offs |
|
|
(95 |
) |
|
|
(431 |
) |
|
|
(1,114 |
) |
|
|
(1,138 |
) |
|
|
(211 |
) |
Foreclosures |
|
|
— |
|
|
|
— |
|
|
|
(239 |
) |
|
|
— |
|
|
|
— |
|
Net change in deferred fees
and costs |
|
|
(92 |
) |
|
|
85 |
|
|
|
(144 |
) |
|
|
234 |
|
|
|
(38 |
) |
Net change in the allowance
for loan losses |
|
|
284 |
|
|
|
(525 |
) |
|
|
(495 |
) |
|
|
(70 |
) |
|
|
(636 |
) |
Total loan activity |
|
$ |
6,727 |
|
|
$ |
126,825 |
|
|
$ |
49,172 |
|
|
$ |
37,192 |
|
|
$ |
170,786 |
|
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESNON-PERFORMING
ASSETS and NET CHARGE-OFFS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
Loans 90 Days
Or More Past Due and Still Accruing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
$ |
445 |
|
$ |
445 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Total |
|
|
445 |
|
|
445 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential |
|
|
2,296 |
|
|
3,132 |
|
|
2,008 |
|
|
2,009 |
|
|
2,410 |
|
Commercial real estate |
|
|
367 |
|
|
872 |
|
|
1,488 |
|
|
1,050 |
|
|
1,379 |
|
One-to-four family - mixed-use
property |
|
|
274 |
|
|
683 |
|
|
1,752 |
|
|
1,305 |
|
|
928 |
|
One-to-four family -
residential |
|
|
5,139 |
|
|
5,050 |
|
|
5,411 |
|
|
5,708 |
|
|
6,144 |
|
Construction |
|
|
— |
|
|
— |
|
|
— |
|
|
950 |
|
|
— |
|
Small Business
Administration |
|
|
1,151 |
|
|
1,151 |
|
|
1,224 |
|
|
1,227 |
|
|
1,267 |
|
Taxi medallion(1) |
|
|
1,641 |
|
|
1,352 |
|
|
1,361 |
|
|
1,372 |
|
|
613 |
|
Commercial business and
other(1) |
|
|
1,945 |
|
|
2,020 |
|
|
2,458 |
|
|
2,114 |
|
|
3,512 |
|
Total |
|
|
12,813 |
|
|
14,260 |
|
|
15,702 |
|
|
15,735 |
|
|
16,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-performing Loans |
|
|
13,258 |
|
|
14,705 |
|
|
15,702 |
|
|
15,735 |
|
|
16,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Non-performing Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate acquired through
foreclosure |
|
|
239 |
|
|
239 |
|
|
239 |
|
|
— |
|
|
— |
|
Other asset acquired through
foreclosure |
|
|
35 |
|
|
35 |
|
|
35 |
|
|
35 |
|
|
35 |
|
Total |
|
|
274 |
|
|
274 |
|
|
274 |
|
|
35 |
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Non-performing Assets |
|
$ |
13,532 |
|
$ |
14,979 |
|
$ |
15,976 |
|
$ |
15,770 |
|
$ |
16,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
Assets to Total Assets |
|
|
0.19 |
% |
|
0.21 |
% |
|
0.23 |
% |
|
0.23 |
% |
|
0.24 |
% |
Allowance For
Loan Losses to Non-performing Loans |
|
|
164.1 |
% |
|
149.8 |
% |
|
137.0 |
% |
|
133.6 |
% |
|
128.9 |
% |
(1) Not included in the above analysis are
non-accrual performing TDR taxi medallion loans totaling $1.7
million in 4Q19, $2.2 million in 3Q19, $2.2 million in 2Q19, $2.5
million in 1Q19 and $3.9 million in 4Q18 and non-accrual performing
TDR commercial business loans totaling $0.9 million in 4Q19 and
$1.0 million in 3Q19.
Net Charge-Offs
(Recoveries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Multi-family residential |
|
$ |
(14 |
) |
|
$ |
183 |
|
|
$ |
(10 |
) |
|
$ |
(13 |
) |
|
$ |
(4 |
) |
Commercial real estate |
|
|
(30 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
One-to-four family – mixed-use
property |
|
|
119 |
|
|
|
(140 |
) |
|
|
(2 |
) |
|
|
(85 |
) |
|
|
(18 |
) |
One-to-four family –
residential |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
110 |
|
|
|
(4 |
) |
|
|
(199 |
) |
Small Business
Administration |
|
|
(8 |
) |
|
|
(32 |
) |
|
|
(16 |
) |
|
|
(4 |
) |
|
|
170 |
|
Taxi medallion |
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
(84 |
) |
|
|
(143 |
) |
Commercial business and
other |
|
|
(98 |
) |
|
|
150 |
|
|
|
954 |
|
|
|
1,092 |
|
|
|
(20 |
) |
Total net loan charge-offs (recoveries) |
|
$ |
(34 |
) |
|
$ |
158 |
|
|
$ |
979 |
|
|
$ |
902 |
|
|
$ |
(214 |
) |
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESRECONCILIATION OF
GAAP EARNINGS and CORE EARNINGS
Non-cash Fair Value Adjustments to GAAP
Earnings
During 2019, core earnings were higher than GAAP
earnings primarily due to the impact of non-cash net losses from
fair value adjustments. These fair value adjustments relate
primarily to swaps designated to protect against rising rates. As
the swaps get closer to maturity the volatility in fair value
adjustments will dissipate. Overall, the interest movement of the
swaps is benefitting the core net interest margin while the fair
value adjustments are offsetting the benefit. In a declining
interest rate environment, the movement in the curve exaggerates
our mark-to-market loss position. In a rising interest rate
environment or a steepening of the yield curve the loss position
would experience an improvement.
Core Diluted EPS, Core ROAE, Core ROAA, Core Net
Interest Income, Core Yield on Total Loans, Core Net Interest
Margin and tangible book value per common share are each non-GAAP
measures used in this release. A reconciliation to the most
directly comparable GAAP financial measures appears below in
tabular form. The Company believes that these measures are
useful for both investors and management to understand the effects
of certain interest and non-interest items and provide an
alternative view of the Company's performance over time and in
comparison to the Company's competitors. These measures should
not be viewed as a substitute for net income. The Company
believes that tangible book value per common share is useful for
both investors and management as these are measures commonly used
by financial institutions, regulators and investors to measure the
capital adequacy of financial institutions. The Company
believes these measures facilitate comparison of the quality and
composition of the Company's capital over time and in comparison to
its competitors. These measures should not be viewed as a
substitute for total shareholders' equity.
These non-GAAP measures have inherent
limitations, are not required to be uniformly applied and are not
audited. They should not be considered in isolation or as a
substitute for analysis of results reported under GAAP. These
non-GAAP measures may not be comparable to similarly titled
measures reported by other companies.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESRECONCILIATION OF
GAAP EARNINGS and CORE EARNINGS(Dollars in
thousands, except per share data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
16,888 |
|
|
$ |
13,260 |
|
$ |
13,468 |
|
|
$ |
53,331 |
|
|
$ |
65,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss from fair
value adjustments |
|
|
(807 |
) |
|
|
2,124 |
|
|
3,585 |
|
|
|
5,353 |
|
|
|
4,122 |
|
|
Net loss on sale of
securities |
|
|
— |
|
|
|
— |
|
|
1,920 |
|
|
|
15 |
|
|
|
1,920 |
|
|
Life insurance proceeds |
|
|
(419 |
) |
|
|
— |
|
|
— |
|
|
|
(462 |
) |
|
|
(2,998 |
) |
|
Net gain on sale of
assets |
|
|
— |
|
|
|
— |
|
|
(1,141 |
) |
|
|
(770 |
) |
|
|
(1,141 |
) |
|
Net (gain) loss from fair
value adjustments on qualifying hedges |
|
|
(1,039 |
) |
|
|
1,262 |
|
|
— |
|
|
|
1,678 |
|
|
|
— |
|
|
Accelerated employee benefits
upon Officer's death |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
455 |
|
|
|
149 |
|
|
Merger expense |
|
|
1,080 |
|
|
|
510 |
|
|
— |
|
|
|
1,590 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core income before taxes |
|
|
15,703 |
|
|
|
17,156 |
|
|
17,832 |
|
|
|
61,190 |
|
|
|
67,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes for
core income |
|
|
3,841 |
|
|
|
3,312 |
|
|
2,395 |
|
|
|
13,957 |
|
|
|
11,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income |
|
$ |
11,862 |
|
|
$ |
13,844 |
|
$ |
15,437 |
|
|
$ |
47,233 |
|
|
$ |
55,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per
common share |
|
$ |
0.45 |
|
|
$ |
0.37 |
|
$ |
0.44 |
|
|
$ |
1.44 |
|
|
$ |
1.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gain) loss from fair
value adjustments, net of tax |
|
|
(0.02 |
) |
|
|
0.06 |
|
|
0.09 |
|
|
|
0.14 |
|
|
|
0.10 |
|
|
Net loss on sale of
securities, net of tax |
|
|
— |
|
|
|
— |
|
|
0.05 |
|
|
|
— |
|
|
|
0.05 |
|
|
Life insurance proceeds |
|
|
(0.01 |
) |
|
|
— |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
Net gain on sale of assets,
net of tax |
|
|
— |
|
|
|
— |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
Net (gain) loss from fair
value adjustments on qualifying hedges, net of tax |
|
|
(0.03 |
) |
|
|
0.04 |
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
|
Accelerated employee benefits
upon Officer's death, net of tax |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
Merger expense, net of
tax |
|
|
0.03 |
|
|
|
0.01 |
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core diluted earnings per
common share(1) |
|
$ |
0.41 |
|
|
$ |
0.48 |
|
$ |
0.54 |
|
|
$ |
1.65 |
|
|
$ |
1.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income, as calculated
above |
|
$ |
11,862 |
|
|
$ |
13,844 |
|
$ |
15,437 |
|
|
$ |
47,233 |
|
|
$ |
55,577 |
|
|
Average assets |
|
|
7,057,094 |
|
|
|
6,972,403 |
|
|
6,681,161 |
|
|
|
6,947,881 |
|
|
|
6,504,598 |
|
|
Average equity |
|
|
567,461 |
|
|
|
564,255 |
|
|
541,067 |
|
|
|
561,289 |
|
|
|
534,735 |
|
|
Core return on average
assets(2) |
|
|
0.67 |
|
% |
|
0.79 |
% |
|
0.92 |
|
% |
|
0.68 |
|
% |
|
0.85 |
|
% |
Core return on average
equity(2) |
|
|
8.36 |
|
% |
|
9.81 |
% |
|
11.41 |
|
% |
|
8.42 |
|
% |
|
10.39 |
|
% |
(1) Core diluted earnings per common share may
not foot due to rounding.(2) Ratios are calculated on an annualized
basis.
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESRECONCILIATION OF
GAAP NET INTEREST INCOME and NET INTEREST
MARGINTo CORE NET INTEREST INCOME
and NET INTEREST MARGIN(Dollars in
thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
GAAP net interest income |
|
$ |
41,179 |
|
|
$ |
38,949 |
|
|
$ |
40,636 |
|
|
$ |
161,940 |
|
|
$ |
167,406 |
|
|
Net (gain) loss from fair
value adjustments on qualifying hedges |
|
|
(1,039 |
) |
|
|
1,262 |
|
|
|
— |
|
|
|
1,678 |
|
|
|
— |
|
|
Core net interest income |
|
$ |
40,140 |
|
|
$ |
40,211 |
|
|
$ |
40,636 |
|
|
$ |
163,618 |
|
|
$ |
167,406 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP interest income on total
loans, net |
|
$ |
64,316 |
|
|
$ |
62,825 |
|
|
$ |
60,722 |
|
|
$ |
251,744 |
|
|
$ |
232,719 |
|
|
Net (gain) loss from fair
value adjustments on qualifying hedges |
|
|
(1,039 |
) |
|
|
1,262 |
|
|
|
— |
|
|
|
1,678 |
|
|
|
— |
|
|
Prepayment penalties received
on loans |
|
|
(926 |
) |
|
|
(1,697 |
) |
|
|
(892 |
) |
|
|
(4,548 |
) |
|
|
(5,200 |
) |
|
Net recoveries of interest
from non-accrual loans |
|
|
(428 |
) |
|
|
(292 |
) |
|
|
(276 |
) |
|
|
(1,953 |
) |
|
|
(1,756 |
) |
|
Core interest income on total
loans, net |
|
$ |
61,923 |
|
|
$ |
62,098 |
|
|
$ |
59,554 |
|
|
$ |
246,921 |
|
|
$ |
225,763 |
|
|
Average total loans, net |
|
$ |
5,726,635 |
|
|
$ |
5,645,503 |
|
|
$ |
5,438,418 |
|
|
$ |
5,621,033 |
|
|
$ |
5,316,968 |
|
|
Core yield on total loans |
|
|
4.33 |
|
% |
|
4.40 |
|
% |
|
4.38 |
|
% |
|
4.39 |
|
% |
|
4.25 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income tax
equivalent |
|
$ |
41,323 |
|
|
$ |
39,097 |
|
|
$ |
40,850 |
|
|
$ |
162,482 |
|
|
$ |
168,301 |
|
|
Net (gain) loss from fair
value adjustments on qualifying hedges |
|
|
(1,039 |
) |
|
|
1,262 |
|
|
|
— |
|
|
|
1,678 |
|
|
|
— |
|
|
Prepayment penalties received
on loans and securities |
|
|
(926 |
) |
|
|
(1,697 |
) |
|
|
(892 |
) |
|
|
(4,548 |
) |
|
|
(5,302 |
) |
|
Net recoveries of interest
from non-accrual loans |
|
|
(428 |
) |
|
|
(292 |
) |
|
|
(276 |
) |
|
|
(1,953 |
) |
|
|
(1,756 |
) |
|
Net interest income used in
calculation of Core net interest margin |
|
$ |
38,930 |
|
|
$ |
38,370 |
|
|
$ |
39,682 |
|
|
$ |
157,659 |
|
|
$ |
161,243 |
|
|
Total average interest-earning
assets |
|
$ |
6,677,325 |
|
|
$ |
6,589,498 |
|
|
$ |
6,364,456 |
|
|
$ |
6,582,473 |
|
|
$ |
6,194,248 |
|
|
Core net interest margin |
|
|
2.33 |
|
% |
|
2.33 |
|
% |
|
2.49 |
|
% |
|
2.40 |
|
% |
|
2.60 |
|
% |
FLUSHING FINANCIAL CORPORATION
and SUBSIDIARIESCALCULATION OF
TANGIBLE STOCKHOLDERS’COMMON
EQUITY to TANGIBLE ASSETS(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2018 |
|
Total Equity |
|
$ |
579,672 |
|
|
$ |
568,392 |
|
|
$ |
549,464 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(16,127 |
) |
|
|
(16,127 |
) |
|
|
(16,127 |
) |
|
Intangible deferred tax liabilities |
|
|
292 |
|
|
|
286 |
|
|
|
290 |
|
|
Tangible Stockholders' Common Equity |
|
$ |
563,837 |
|
|
$ |
552,551 |
|
|
$ |
533,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
7,017,776 |
|
|
$ |
7,110,895 |
|
|
$ |
6,834,176 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(16,127 |
) |
|
|
(16,127 |
) |
|
|
(16,127 |
) |
|
Intangible deferred tax liabilities |
|
|
292 |
|
|
|
286 |
|
|
|
290 |
|
|
Tangible Assets |
|
$ |
7,001,941 |
|
|
$ |
7,095,054 |
|
|
$ |
6,818,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Stockholders' Common
Equity to Tangible Assets |
|
|
8.05 |
|
% |
|
7.79 |
|
% |
|
7.83 |
|
% |
__________________________________
1 See the tables entitled “Reconciliation
of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP Net
Interest Income and Net Interest Margin to Core Net Interest Income
and Net Interest Margin.”
Susan K. CullenSenior Executive Vice President,
Treasurer and Chief Financial OfficerFlushing 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