John R. Buran, President and CEO Commentary
| “Flushing Financial delivered sequential GAAP and Core NIM expansion in 4Q23 of 7 and 18 basis points, respectively, as our team continued to successfully execute against the previously announced action plan amid this challenging environment. Importantly, during the quarter, total average deposits increased 3.1% YoY and 0.9% QoQ, while average noninterest bearing deposits increased $21.6 million, or 2.5% QoQ. Our loan portfolio remains resilient through the credit cycle with 89% secured by real estate, strong debt service coverage ratios, low average loan to values, and controllable repricing risk. Credit quality continues to be a strength for the Company with less than one basis point of net charge-offs in 4Q23 although there was a slight uptick in NPAs.
Given our progress to date, we are expanding our areas of focus to include: 1) increasing NIM and reducing volatility; 2) maintaining credit discipline; 3) preserving strong liquidity and capital; and 4) bending the expense curve. Continuing to advance these priorities will enable us to navigate the current environment while positioning the Company for long-term profitable growth.” |
|
| – John R. Buran, President and CEO |
UNIONDALE, N.Y., Jan. 25, 2024 (GLOBE NEWSWIRE) — GAAP and Core NIM Expand QoQ; Average Total Deposits Increase. The Company reported fourth quarter and full year 2023 GAAP EPS of $0.27 and $0.96, respectively. Core EPS for the fourth quarter and full year of 2023 totaled $0.25 and $0.83, respectively. 4Q23 GAAP NIM was 2.29% while Core NIM amounted to 2.31%. The actions undertaken in 2023 to reduce interest rate risk, including adding interest rate hedges and floating rate loans, assisted in reducing the NIM compression. Absent episodic items, the NIM was 2.14%, an increase of 5 basis points quarter over quarter. Average total deposits increased 3.1% YoY and 0.9% QoQ while importantly, noninterest bearing deposits increased $21.6 million, or 2.5% QoQ.
Strong Credit Quality; Stable Capital. Nonperforming assets to total assets increased to 54 bps compared to 45 bps in 3Q23, while criticized and classified loans to loans was 1.11% in 4Q23, compared to 1.08% in 3Q23. Net charge-offs were only $60 thousand in 4Q23. Capital continues to be sound with TCE/TA1 of 7.64% at December 31, 2023, compared to 7.56% at September 30, 2023. The Company repurchased 38,815 shares at an average cost $15.08 (33% discount to tangible book value) during 4Q23.
| Key Financial Metrics2 |
| 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q22 | 2023 | 2022 | ||||||||||||||||||
| GAAP: | ||||||||||||||||||||||||
| EPS | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.13 | $ | 0.34 | $ | 0.96 | $ | 2.50 | ||||||||||
| ROAA (%) | 0.38 | 0.37 | 0.41 | 0.19 | 0.48 | 0.34 | 0.93 | |||||||||||||||||
| ROAE (%) | 4.84 | 4.64 | 5.16 | 2.37 | 6.06 | 4.25 | 11.44 | |||||||||||||||||
| NIM FTE3(%) | 2.29 | 2.22 | 2.18 | 2.27 | 2.70 | 2.24 | 3.11 | |||||||||||||||||
| Core: | ||||||||||||||||||||||||
| EPS | $ | 0.25 | $ | 0.25 | $ | 0.26 | $ | 0.06 | $ | 0.57 | $ | 0.83 | $ | 2.49 | ||||||||||
| ROAA (%) | 0.35 | 0.36 | 0.37 | 0.09 | 0.82 | 0.29 | 0.92 | |||||||||||||||||
| ROAE (%) | 4.51 | 4.49 | 4.70 | 1.11 | 10.29 | 3.69 | 11.42 | |||||||||||||||||
| Core NIM FTE (%) | 2.31 | 2.13 | 2.17 | 2.25 | 2.63 | 2.21 | 3.07 | |||||||||||||||||
| Credit Quality: | ||||||||||||||||||||||||
| NPAs/Loans & OREO (%) | 0.67 | 0.56 | 0.58 | 0.61 | 0.77 | 0.67 | 0.77 | |||||||||||||||||
| ACLs/Loans (%) | 0.58 | 0.57 | 0.57 | 0.56 | 0.58 | 0.58 | 0.58 | |||||||||||||||||
| ACLs/NPLs (%) | 159.55 | 225.38 | 207.08 | 182.89 | 124.89 | 159.55 | 124.89 | |||||||||||||||||
| NCOs/Avg Loans (%) | – | – | 0.09 | 0.54 | 0.05 | 0.16 | 0.02 | |||||||||||||||||
| Balance Sheet: | ||||||||||||||||||||||||
| Avg Loans (B) | $ | 6.9 | $ | 6.8 | $ | 6.8 | $ | 6.9 | $ | 6.9 | $ | 6.8 | $ | 6.7 | ||||||||||
| Avg Dep (B) | $ | 6.9 | $ | 6.8 | $ | 6.9 | $ | 6.8 | $ | 6.7 | $ | 6.9 | $ | 6.5 | ||||||||||
| Book Value/Share | $ | 23.21 | $ | 23.06 | $ | 23.14 | $ | 22.80 | $ | 22.97 | $ | 23.21 | $ | 22.97 | ||||||||||
| Tangible BV/Share | $ | 22.54 | $ | 22.39 | $ | 22.47 | $ | 22.14 | $ | 22.31 | $ | 22.54 | $ | 22.31 | ||||||||||
| TCE/TA (%) | 7.64 | 7.56 | 7.70 | 7.72 | 7.82 | 7.64 | 7.82 | |||||||||||||||||
Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
1 Tangible Common Equity (“TCE”)/Total Assets (“TA”) 2 See “Reconciliation of GAAP Earnings and Core Earnings”, “Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue”, and “Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin.” 3 Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”).
| 4Q23 Highlights | |
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| Areas of Focus | |
| Increase NIM and Reduce Volatility |
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| Maintain Credit Discipline |
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| Preserve Strong Liquidity and Capital |
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| Bend the Expense Curve |
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1 Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments
| Income Statement Highlights |
| YoY | QoQ | |||||||||||||||||||||||||
| ($000s, except EPS) | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q22 | Change | Change | |||||||||||||||||||
| Net Interest Income | $ | 46,085 | $ | 44,427 | $ | 43,378 | $ | 45,262 | $ | 54,201 | (15.0 | ) | % | 3.7 | % | |||||||||||
| Provision (Benefit) for Credit Losses | 998 | 596 | 1,416 | 7,508 | (12 | ) | (8,416.7 | ) | 67.4 | |||||||||||||||||
| Noninterest Income (Loss) | 7,402 | 3,309 | 5,020 | 6,857 | (7,652 | ) | (196.7 | ) | 123.7 | |||||||||||||||||
| Noninterest Expense | 40,735 | 36,388 | 35,110 | 39,156 | 33,742 | 20.7 | 11.9 | |||||||||||||||||||
| Income Before Income Taxes | 11,754 | 10,752 | 11,872 | 5,455 | 12,819 | (8.3 | ) | 9.3 | ||||||||||||||||||
| Provision for Income Taxes | 3,655 | 2,917 | 3,186 | 1,411 | 2,570 | 42.2 | 25.3 | |||||||||||||||||||
| Net Income | $ | 8,099 | $ | 7,835 | $ | 8,686 | $ | 4,044 | $ | 10,249 | (21.0 | ) | 3.4 | |||||||||||||
| Diluted EPS | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.13 | $ | 0.34 | (20.6 | ) | 3.8 | |||||||||||||
| Avg. Diluted Shares (000s) | 29,650 | 29,703 | 30,090 | 30,265 | 30,420 | (2.5 | ) | (0.2 | ) | |||||||||||||||||
| Core Net Income1 | $ | 7,546 | $ | 7,571 | $ | 7,912 | $ | 1,889 | $ | 17,399 | (56.6 | ) | (0.3 | ) | ||||||||||||
| Core EPS1 | $ | 0.25 | $ | 0.25 | $ | 0.26 | $ | 0.06 | $ | 0.57 | (56.1 | ) | – | |||||||||||||
1 See Reconciliation of GAAP Earnings and Core Earnings
Net interest income decreased YoY but increased QoQ.
- Net Interest Margin FTE of 2.29% decreased 41 bps YoY, but increased 7 bps QoQ
- Prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $3.0 million (15 bps to the NIM) compared to $2.6 million (13 bps to the NIM) in 3Q23, $0.5 million (3 bps) in 2Q23, $1.1 million (6 bps) in 1Q23, and $2.4 million (12 bps) in 4Q22
- Excluding the items in the previous bullet, net interest margin was 2.14% in 4Q23, 2.09% in 3Q23, 2.15% in 2Q23, 2.21% in 1Q23, and 2.58% in 4Q22
The provision for credit losses increased YoY and QoQ.
- Net charge-offs (recoveries) were $60,000 in 4Q23 (less than 1 bp of average loans) compared to $(42,000) in 3Q23 (less than (1) bp of average loans), $1.6 million in 2Q23 (9 bps of average loans), $9.2 million in 1Q23 (54 bps of average loans), and $0.8 million in 4Q22 (5 bps of average loans)
- 1Q23 net charge-offs were primarily related to a commercial business relationship that was placed on nonaccrual in 2Q22
Noninterest income (loss) increased YoY and QoQ.
- Back-to-back swap loan closings of $121.6 million in 4Q23 (compared to $120.5 million in 3Q23 and $11.5 million in 2Q23) contributed to the YoY growth in core noninterest income; the Company earns fee income on back-to-back swap loan closings
- Net gains (losses) from fair value adjustments were $0.9 million in 4Q23 ($0.02 per share, net of tax), $(1.2) million in 3Q23 ($(0.03) per share, net of tax), $0.3 million in 2Q23 ($0.01 per share, net of tax), $2.6 million in 1Q23 ($0.06 per share, net of tax), and $(0.6) million in 4Q22 ($(0.02) per share, net of tax)
- Life insurance proceeds were $0.7 million in 4Q23 ($0.02 per share), $23,000 in 3Q23 (less than $0.01 per share), $0.6 million ($0.02 per share) in 2Q23, and $0.3 million ($0.01 per share) in 4Q22
- Loss on the sale of securities was $10.9 million ($0.27 per share, net of tax) in 4Q22 as the Company sold $84.2 million of mortgage-based securities with an approximate yield of 1.17%; proceeds were primarily reinvested in 1Q23 into floating rate securities that had a yield at that time approximating 6.40%
- Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $5.8 million in 4Q23, up 64.4% YoY and 28.0% QoQ
- 4Q23 other fee income includes net realized gains on the sale of assets and other dividends from nonqualified plans that are expected to normalize in future periods
Noninterest expense increased YoY and QoQ.
- 4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production
- Seasonal compensation expense was $4.1 million in 1Q23; seasonal expenses are expected to be less than half in 1Q24
- Excluding the effects of immaterial adjustments, core operating expenses were $40.1 million in 4Q23, up 19.3% YoY, and 10.5% QoQ
- GAAP noninterest expense to average assets was 1.90% in 4Q23, 1.71% in 3Q23, 1.66% in 2Q23, 1.85% in 1Q23, and 1.58% in 4Q22
Provision for income taxes increased YoY and QoQ.
- The effective tax rate was 31.1% in 4Q23, 27.1% in 3Q23, 26.8% in 2Q23, 25.9% in 1Q23, and 20.0% in 4Q22
- The 4Q23 effective tax rate increased as a result of preferential tax items having a smaller impact due to higher pre-tax income than estimated in 3Q23 and 2Q23; the 4Q22 effective tax rate had preferential tax items that had a larger impact as a result of lower levels of pre-tax income
| Balance Sheet, Credit Quality, and Capital Highlights |
| YoY | QoQ | |||||||||||||||||||||||
| 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q22 | Change | Change | ||||||||||||||||||
| Averages (MM) | ||||||||||||||||||||||||
| Loans | $ | 6,868 | $ | 6,813 | $ | 6,830 | $ | 6,871 | $ | 6,881 | (0.2 | ) | % | 0.8 | % | |||||||||
| Total Deposits | 6,884 | 6,819 | 6,900 | 6,810 | 6,678 | 3.1 | 1.0 | |||||||||||||||||
| Credit Quality ($000s) | ||||||||||||||||||||||||
| Nonperforming Loans | $ | 25,172 | $ | 17,405 | $ | 18,637 | $ | 21,176 | $ | 32,382 | (22.3 | ) | % | 44.6 | % | |||||||||
| Nonperforming Assets | 46,153 | 38,386 | 39,618 | 42,157 | 53,363 | (13.5 | ) | 20.2 | ||||||||||||||||
| Criticized and Classified Loans | 76,719 | 74,169 | 48,675 | 58,130 | 68,093 | 12.7 | 3.4 | |||||||||||||||||
| Criticized and Classified Assets | 97,700 | 95,150 | 69,656 | 79,111 | 89,073 | 9.7 | 2.7 | |||||||||||||||||
| Allowance for Credit Losses/Loans (%) | 0.58 | 0.57 | 0.57 | 0.56 | 0.58 | – | bps | 1 | bp | |||||||||||||||
| Capital | ||||||||||||||||||||||||
| Book Value/Share | $ | 23.21 | $ | 23.06 | $ | 23.14 | $ | 22.80 | $ | 22.97 | 1.0 | % | 0.7 | % | ||||||||||
| Tangible Book Value/Share | 22.54 | 22.39 | 22.47 | 22.14 | 22.31 | 1.0 | 0.7 | |||||||||||||||||
| Tang. Common Equity/Tang. Assets (%) | 7.64 | 7.56 | 7.70 | 7.72 | 7.82 | (18 | ) | bps | 8 | bps | ||||||||||||||
| Leverage Ratio (%) | 8.47 | 8.51 | 8.54 | 8.56 | 8.61 | (14 | ) | (4 | ) | |||||||||||||||
Average loans decreased YoY but increased QoQ.
- Period end net loans totaled $6.9 billion, down 0.4% YoY, but up 0.1% QoQ
- Total loan closings were $244.3 million in 4Q23, $241.5 million in 3Q23, $158.8 million in 2Q23, $173.5 million in 1Q23, and $225.2 million in 4Q22; the loan pipeline was $163.1 million at December 31, 2023, down 35.3% YoY and 55.1% QoQ
- The diversified loan portfolio is approximately 89% collateralized by real estate with an average loan-to-value ratio of less than 36%
- Manhattan office buildings exposure is minimal at 0.6% of net loans
Average total deposits increased YoY and QoQ.
- Average noninterest bearing deposits decreased 10.9% YoY, but increased 2.5% QoQ and comprised 12.7% of average total deposits in 4Q23 compared to 14.7% a year ago
- Average CDs totaled $2.3 billion, up 73.3% YoY and 2.2% QoQ; approximately $408.6 million of non-swapped CDs are due to mature at a rate of 3.20% in 1Q24
Credit Quality: Nonperforming loans declined YoY but increased QoQ.
- Criticized and classified loans were 111 bps of gross loans at 4Q23 compared to 108 bps at 3Q23, 71 bps at 2Q23, 84 bps at 1Q23, and 98 bps at 4Q22
- Allowance for credit losses were 159.5% of nonperforming loans at 4Q23 compared to 124.9% at 4Q22 and 225.4% at 3Q23
Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased 1.0% YoY and 0.7% QoQ to $23.21 and $22.54, respectively.
- The Company paid a dividend of $0.22 per share in 4Q23; repurchased 38,815 shares in 4Q23 at an average price of $15.08, representing a 33% discount to tangible book value; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
- Tangible common equity to tangible assets was 7.64% at December 31, 2023, compared to 7.82% at December 31, 2022, and 7.56% at September 30, 2023
| Conference Call Information and First Quarter Earnings Release Date |
Conference Call Information:
- John R. Buran, President and Chief Executive Officer, Tom Buonaiuto, Senior Executive Vice President, Chief of Staff, and Deposit Channel Executive, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Friday, January 26, 2024, at 11:00 AM (ET) to discuss the Company’s fourth quarter and full year results and strategy.
- Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
- Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=VQZ8mq4o
- Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
- Replay Access Code: 6289639
- The conference call will be simultaneously webcast and archived
First Quarter 2024 Earnings Release Date:
The Company plans to release First Quarter 2024 financial results after the market close on April 23, 2024; followed by a conference call at 9:30 AM (ET) on April 24, 2024.
A detailed announcement will be issued prior to the first quarter’s close confirming the date and time of the earnings release.
About Flushing Financial Corporation
Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank’s experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.
Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company’s website at FlushingBank.com. Flushing Financial Corporation’s earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-looking statements.
#FF – Statistical Tables Follow –
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| At or for the three months ended | At or for the year ended | |||||||||||||||||||||||||||
| (Dollars in thousands, except | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||
| Performance Ratios (1) | ||||||||||||||||||||||||||||
| Return on average assets | 0.38 | % | 0.37 | % | 0.41 | % | 0.19 | % | 0.48 | % | 0.34 | % | 0.93 | % | ||||||||||||||
| Return on average equity | 4.84 | 4.64 | 5.16 | 2.37 | 6.06 | 4.25 | 11.44 | |||||||||||||||||||||
| Yield on average interest-earning assets (2) | 5.39 | 5.19 | 4.84 | 4.61 | 4.44 | 5.01 | 4.05 | |||||||||||||||||||||
| Cost of average interest-bearing liabilities | 3.68 | 3.52 | 3.15 | 2.80 | 2.11 | 3.29 | 1.13 | |||||||||||||||||||||
| Cost of funds | 3.26 | 3.13 | 2.80 | 2.47 | 1.84 | 2.91 | 0.98 | |||||||||||||||||||||
| Net interest rate spread during period (2) | 1.71 | 1.67 | 1.69 | 1.81 | 2.33 | 1.72 | 2.92 | |||||||||||||||||||||
| Net interest margin (2) | 2.29 | 2.22 | 2.18 | 2.27 | 2.70 | 2.24 | 3.11 | |||||||||||||||||||||
| Noninterest expense to average assets | 1.90 | 1.71 | 1.66 | 1.85 | 1.58 | 1.78 | 1.73 | |||||||||||||||||||||
| Efficiency ratio (3) | 76.69 | 76.76 | 73.82 | 79.52 | 59.55 | 76.72 | 56.46 | |||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 1.19 | X | 1.18 | X | 1.18 | X | 1.19 | X | 1.21 | X | 1.19 | X | 1.22 | X | ||||||||||||||
| Average Balances | ||||||||||||||||||||||||||||
| Total loans, net | $ | 6,867,927 | $ | 6,813,019 | $ | 6,829,648 | $ | 6,871,192 | $ | 6,881,245 | $ | 6,845,349 | $ | 6,741,590 | ||||||||||||||
| Total interest-earning assets | 8,076,991 | 8,023,237 | 7,991,756 | 8,002,376 | 8,045,691 | 8,023,793 | 7,835,654 | |||||||||||||||||||||
| Total assets | 8,569,002 | 8,505,346 | 8,462,442 | 8,468,317 | 8,518,019 | 8,501,564 | 8,307,137 | |||||||||||||||||||||
| Total deposits | 6,884,037 | 6,819,397 | 6,899,617 | 6,810,485 | 6,678,383 | 6,853,494 | 6,451,746 | |||||||||||||||||||||
| Total interest-bearing liabilities | 6,813,909 | 6,771,860 | 6,756,859 | 6,703,558 | 6,662,209 | 6,761,877 | 6,444,805 | |||||||||||||||||||||
| Stockholders’ equity | 669,819 | 675,041 | 672,835 | 683,058 | 676,165 | 675,151 | 672,742 | |||||||||||||||||||||
| Per Share Data | ||||||||||||||||||||||||||||
| Book value per common share (4) | $ | 23.21 | $ | 23.06 | $ | 23.14 | $ | 22.80 | $ | 22.97 | $ | 23.21 | $ | 22.97 | ||||||||||||||
| Tangible book value per common share (5) | $ | 22.54 | $ | 22.39 | $ | 22.47 | $ | 22.14 | $ | 22.31 | $ | 22.54 | $ | 22.31 | ||||||||||||||
| Stockholders’ Equity | ||||||||||||||||||||||||||||
| Stockholders’ equity | $ | 669,837 | $ | 666,521 | $ | 670,247 | $ | 672,345 | $ | 677,157 | $ | 669,837 | $ | 677,157 | ||||||||||||||
| Tangible stockholders’ equity | 650,664 | 647,234 | 650,842 | 652,818 | 657,504 | 650,664 | 657,504 | |||||||||||||||||||||
| Consolidated Regulatory Capital Ratios | ||||||||||||||||||||||||||||
| Tier 1 capital | $ | 737,732 | $ | 736,744 | $ | 734,754 | $ | 736,024 | $ | 746,880 | $ | 737,732 | $ | 746,880 | ||||||||||||||
| Common equity Tier 1 capital | 691,754 | 690,294 | 688,820 | 689,732 | 698,258 | 691,754 | 698,258 | |||||||||||||||||||||
| Total risk-based capital | 967,627 | 965,532 | 962,784 | 964,270 | 975,709 | 967,627 | 975,709 | |||||||||||||||||||||
| Risk Weighted Assets | 6,750,301 | 6,804,478 | 6,650,222 | 6,660,145 | 6,640,542 | 6,750,301 | 6,640,542 | |||||||||||||||||||||
| Tier 1 leverage capital (well capitalized = 5%) | 8.47 | % | 8.51 | % | 8.54 | % | 8.56 | % | 8.61 | % | 8.47 | % | 8.61 | % | ||||||||||||||
| Common equity Tier 1 risk-based capital (well capitalized = 6.5%) | 10.25 | 10.14 | 10.36 | 10.36 | 10.52 | 10.25 | 10.52 | |||||||||||||||||||||
| Tier 1 risk-based capital (well capitalized = 8.0%) | 10.93 | 10.83 | 11.05 | 11.05 | 11.25 | 10.93 | 11.25 | |||||||||||||||||||||
| Total risk-based capital (well capitalized = 10.0%) | 14.33 | 14.19 | 14.48 | 14.48 | 14.69 | 14.33 | 14.69 | |||||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||||
| Average equity to average assets | 7.82 | % | 7.94 | % | 7.95 | % | 8.07 | % | 7.94 | % | 7.94 | % | 8.10 | % | ||||||||||||||
| Equity to total assets | 7.85 | 7.77 | 7.91 | 7.93 | 8.04 | 7.85 | 8.04 | |||||||||||||||||||||
| Tangible common equity to tangible assets (6) | 7.64 | 7.56 | 7.70 | 7.72 | 7.82 | 7.64 | 7.82 | |||||||||||||||||||||
| Asset Quality | ||||||||||||||||||||||||||||
| Nonaccrual loans (7) | $ | 23,709 | $ | 17,405 | $ | 18,637 | $ | 21,176 | $ | 29,782 | $ | 23,709 | $ | 29,782 | ||||||||||||||
| Nonperforming loans | 25,172 | 17,405 | 18,637 | 21,176 | 32,382 | 25,172 | 32,382 | |||||||||||||||||||||
| Nonperforming assets | 46,153 | 38,386 | 39,618 | 42,157 | 53,363 | 46,153 | 53,363 | |||||||||||||||||||||
| Net charge-offs (recoveries) | 60 | (42 | ) | 1,560 | 9,234 | 811 | 10,812 | 1,535 | ||||||||||||||||||||
| Asset Quality Ratios | ||||||||||||||||||||||||||||
| Nonperforming loans to gross loans | 0.36 | % | 0.25 | % | 0.27 | % | 0.31 | % | 0.47 | % | 0.36 | % | 0.47 | % | ||||||||||||||
| Nonperforming assets to total assets | 0.54 | 0.45 | 0.47 | 0.50 | 0.63 | 0.54 | 0.63 | |||||||||||||||||||||
| Allowance for credit losses to gross loans | 0.58 | 0.57 | 0.57 | 0.56 | 0.58 | 0.58 | 0.58 | |||||||||||||||||||||
| Allowance for credit losses to nonperforming assets | 87.02 | 102.19 | 97.41 | 91.87 | 75.79 | 87.02 | 75.79 | |||||||||||||||||||||
| Allowance for credit losses to nonperforming loans | 159.55 | 225.38 | 207.08 | 182.89 | 124.89 | 159.55 | 124.89 | |||||||||||||||||||||
| Net charge-offs (recoveries) to average loans | — | — | 0.09 | 0.54 | 0.05 | 0.16 | 0.02 | |||||||||||||||||||||
| Full-service customer facilities | 27 | 27 | 26 | 26 | 25 | 27 | 25 | |||||||||||||||||||||
| (1) | Ratios are presented on an annualized basis, where appropriate. |
| (2) | Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented. |
| (3) | Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income. |
| (4) | Calculated by dividing stockholders’ equity by shares outstanding. |
| (5) | Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less intangible assets. See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”. |
| (6) | See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”. |
| (7) | Excludes performing nonaccrual TDR loans in periods prior to 1Q23. |
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| For the three months ended | For the year ended | ||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||
| (In thousands, except per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
| Interest and Dividend Income | |||||||||||||||||||||||||
| Interest and fees on loans | $ | 95,616 | $ | 91,466 | $ | 85,377 | $ | 82,889 | $ | 81,033 | $ | 355,348 | $ | 293,287 | |||||||||||
| Interest and dividends on securities: | |||||||||||||||||||||||||
| Interest | 10,803 | 10,383 | 9,172 | 7,240 | 6,511 | 37,598 | 20,861 | ||||||||||||||||||
| Dividends | 34 | 33 | 30 | 29 | 24 | 126 | 60 | ||||||||||||||||||
| Other interest income | 2,310 | 2,154 | 1,982 | 1,959 | 1,702 | 8,405 | 2,418 | ||||||||||||||||||
| Total interest and dividend income | 108,763 | 104,036 | 96,561 | 92,117 | 89,270 | 401,477 | 316,626 | ||||||||||||||||||
| Interest Expense | |||||||||||||||||||||||||
| Deposits | 53,284 | 50,066 | 46,249 | 39,056 | 27,226 | 188,655 | 47,285 | ||||||||||||||||||
| Other interest expense | 9,394 | 9,543 | 6,934 | 7,799 | 7,843 | 33,670 | 25,725 | ||||||||||||||||||
| Total interest expense | 62,678 | 59,609 | 53,183 | 46,855 | 35,069 | 222,325 | 73,010 | ||||||||||||||||||
| Net Interest Income | 46,085 | 44,427 | 43,378 | 45,262 | 54,201 | 179,152 | 243,616 | ||||||||||||||||||
| Provision (benefit) for credit losses | 998 | 596 | 1,416 | 7,508 | (12 | ) | 10,518 | 5,081 | |||||||||||||||||
| NetInterest Income After Provision (Benefit) for Credit Losses | 45,087 | 43,831 | 41,962 | 37,754 | 54,213 | 168,634 | 238,535 | ||||||||||||||||||
| Noninterest Income (Loss) | |||||||||||||||||||||||||
| Banking services fee income | 2,824 | 2,636 | 1,780 | 1,411 | 1,231 | 8,651 | 5,122 | ||||||||||||||||||
| Net loss on sale of securities | — | — | — | — | (10,948 | ) | — | (10,948 | ) | ||||||||||||||||
| Net gain on sale of loans | — | — | 54 | 54 | 46 | 108 | 119 | ||||||||||||||||||
| Net gain on disposition of assets | — | — | — | — | 104 | — | 104 | ||||||||||||||||||
| Net gain (loss) from fair value adjustments | 906 | (1,246 | ) | 294 | 2,619 | (622 | ) | 2,573 | 5,728 | ||||||||||||||||
| Federal Home Loan Bank of New York stock dividends | 658 | 624 | 534 | 697 | 658 | 2,513 | 2,000 | ||||||||||||||||||
| Life insurance proceeds | 697 | 23 | 561 | — | 286 | 1,281 | 1,822 | ||||||||||||||||||
| Bank owned life insurance | 1,173 | 1,157 | 1,134 | 1,109 | 1,126 | 4,573 | 4,487 | ||||||||||||||||||
| Other income | 1,144 | 115 | 663 | 967 | 467 | 2,889 | 1,575 | ||||||||||||||||||
| Total noninterest income (loss) | 7,402 | 3,309 | 5,020 | 6,857 | (7,652 | ) | 22,588 | 10,009 | |||||||||||||||||
| Noninterest Expense | |||||||||||||||||||||||||
| Salaries and employee benefits | 23,359 | 20,346 | 19,690 | 22,562 | 18,178 | 85,957 | 84,374 | ||||||||||||||||||
| Occupancy and equipment | 3,698 | 3,371 | 3,534 | 3,793 | 3,701 | 14,396 | 14,606 | ||||||||||||||||||
| Professional services | 2,523 | 2,494 | 2,291 | 2,261 | 2,130 | 9,569 | 9,207 | ||||||||||||||||||
| FDIC deposit insurance | 1,162 | 912 | 943 | 977 | 485 | 3,994 | 2,258 | ||||||||||||||||||
| Data processing | 1,646 | 1,422 | 1,473 | 1,435 | 1,421 | 5,976 | 5,595 | ||||||||||||||||||
| Depreciation and amortization | 1,491 | 1,482 | 1,482 | 1,510 | 1,535 | 5,965 | 5,930 | ||||||||||||||||||
| Other real estate owned/foreclosure expense | 105 | 185 | 150 | 165 | 35 | 605 | 294 | ||||||||||||||||||
| Other operating expenses | 6,751 | 6,176 | 5,547 | 6,453 | 6,257 | 24,927 | 21,428 | ||||||||||||||||||
| Total noninterest expense | 40,735 | 36,388 | 35,110 | 39,156 | 33,742 | 151,389 | 143,692 | ||||||||||||||||||
| Income Before Provision for Income Taxes | 11,754 | 10,752 | 11,872 | 5,455 | 12,819 | 39,833 | 104,852 | ||||||||||||||||||
| Provision for Income Taxes | 3,655 | 2,917 | 3,186 | 1,411 | 2,570 | 11,169 | 27,907 | ||||||||||||||||||
| Net Income | $ | 8,099 | $ | 7,835 | $ | 8,686 | $ | 4,044 | $ | 10,249 | $ | 28,664 | $ | 76,945 | |||||||||||
| Basic earnings per common share | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.13 | $ | 0.34 | $ | 0.96 | $ | 2.50 | |||||||||||
| Diluted earnings per common share | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.13 | $ | 0.34 | $ | 0.96 | $ | 2.50 | |||||||||||
| Dividends per common share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.88 | $ | 0.88 | |||||||||||
| Basic average shares | 29,650 | 29,703 | 30,090 | 30,265 | 30,420 | 29,925 | 30,823 | ||||||||||||||||||
| Diluted average shares | 29,650 | 29,703 | 30,090 | 30,265 | 30,420 | 29,925 | 30,823 | ||||||||||||||||||
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 172,157 | $ | 200,926 | $ | 160,053 | $ | 176,747 | $ | 151,754 | |||||||||
| Securities held-to-maturity: | |||||||||||||||||||
| Mortgage-backed securities | 7,855 | 7,860 | 7,865 | 7,870 | 7,875 | ||||||||||||||
| Other securities, net | 65,068 | 65,271 | 65,469 | 65,653 | 65,836 | ||||||||||||||
| Securities available for sale: | |||||||||||||||||||
| Mortgage-backed securities | 354,344 | 337,879 | 365,911 | 380,110 | 384,283 | ||||||||||||||
| Other securities | 520,409 | 505,784 | 503,645 | 431,818 | 351,074 | ||||||||||||||
| Loans | 6,906,950 | 6,896,074 | 6,832,425 | 6,904,176 | 6,934,769 | ||||||||||||||
| Allowance for credit losses | (40,161 | ) | (39,228 | ) | (38,593 | ) | (38,729 | ) | (40,442 | ) | |||||||||
| Net loans | 6,866,789 | 6,856,846 | 6,793,832 | 6,865,447 | 6,894,327 | ||||||||||||||
| Interest and dividends receivable | 59,018 | 55,660 | 52,911 | 46,836 | 45,048 | ||||||||||||||
| Bank premises and equipment, net | 21,273 | 21,302 | 22,182 | 21,567 | 21,750 | ||||||||||||||
| Federal Home Loan Bank of New York stock | 31,066 | 43,821 | 36,168 | 38,779 | 45,842 | ||||||||||||||
| Bank owned life insurance | 213,518 | 214,321 | 213,164 | 214,240 | 213,131 | ||||||||||||||
| Goodwill | 17,636 | 17,636 | 17,636 | 17,636 | 17,636 | ||||||||||||||
| Core deposit intangibles | 1,537 | 1,651 | 1,769 | 1,891 | 2,017 | ||||||||||||||
| Right of use asset | 39,557 | 41,404 | 41,526 | 42,268 | 43,289 | ||||||||||||||
| Other assets | 167,009 | 209,014 | 192,721 | 168,872 | 179,084 | ||||||||||||||
| Total assets | $ | 8,537,236 | $ | 8,579,375 | $ | 8,474,852 | $ | 8,479,734 | $ | 8,422,946 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Total deposits | $ | 6,815,261 | $ | 6,681,509 | $ | 6,723,690 | $ | 6,734,090 | $ | 6,485,342 | |||||||||
| Borrowed funds | 841,281 | 1,001,010 | 857,400 | 887,509 | 1,052,973 | ||||||||||||||
| Operating lease liability | 40,822 | 43,067 | 44,402 | 45,353 | 46,125 | ||||||||||||||
| Other liabilities | 170,035 | 187,268 | 179,113 | 140,437 | 161,349 | ||||||||||||||
| Total liabilities | 7,867,399 | 7,912,854 | 7,804,605 | 7,807,389 | 7,745,789 | ||||||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Preferred stock (5,000,000 shares authorized; none issued) | — | — | — | — | — | ||||||||||||||
| Common stock ($0.01 par value; 100,000,000 shares authorized) | 341 | 341 | 341 | 341 | 341 | ||||||||||||||
| Additional paid-in capital | 264,534 | 264,486 | 263,744 | 262,876 | 264,332 | ||||||||||||||
| Treasury stock | (106,070 | ) | (105,433 | ) | (104,574 | ) | (97,760 | ) | (98,535 | ) | |||||||||
| Retained earnings | 549,683 | 548,058 | 546,755 | 544,672 | 547,507 | ||||||||||||||
| Accumulated other comprehensive loss, net of taxes | (38,651 | ) | (40,931 | ) | (36,019 | ) | (37,784 | ) | (36,488 | ) | |||||||||
| Total stockholders’ equity | 669,837 | 666,521 | 670,247 | 672,345 | 677,157 | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 8,537,236 | $ | 8,579,375 | $ | 8,474,852 | $ | 8,479,734 | $ | 8,422,946 | |||||||||
| (In thousands) | |||||||||||||||||||
| Issued shares | 34,088 | 34,088 | 34,088 | 34,088 | 34,088 | ||||||||||||||
| Outstanding shares | 28,866 | 28,905 | 28,961 | 29,488 | 29,476 | ||||||||||||||
| Treasury shares | 5,222 | 5,183 | 5,127 | 4,600 | 4,612 | ||||||||||||||
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||
| AVERAGE BALANCE SHEETS | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (In thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Interest-earning Assets: | ||||||||||||||||||||||
| Mortgage loans, net | $ | 5,356,112 | $ | 5,314,215 | $ | 5,308,567 | $ | 5,333,274 | $ | 5,338,612 | $ | 5,328,067 | $ | 5,253,104 | ||||||||
| Commercial Business loans, net | 1,511,815 | 1,498,804 | 1,521,081 | 1,537,918 | 1,542,633 | 1,517,282 | 1,488,486 | |||||||||||||||
| Total loans, net | 6,867,927 | 6,813,019 | 6,829,648 | 6,871,192 | 6,881,245 | 6,845,349 | 6,741,590 | |||||||||||||||
| Taxable securities: | ||||||||||||||||||||||
| Mortgage-backed securities | 426,612 | 436,181 | 448,620 | 457,911 | 549,204 | 442,228 | 573,314 | |||||||||||||||
| Other securities, net | 527,316 | 528,091 | 471,600 | 411,723 | 371,897 | 485,118 | 324,112 | |||||||||||||||
| Total taxable securities | 953,928 | 964,272 | 920,220 | 869,634 | 921,101 | 927,346 | 897,426 | |||||||||||||||
| Tax-exempt securities: | ||||||||||||||||||||||
| Other securities | 66,242 | 66,438 | 66,632 | 66,828 | 67,022 | 66,533 | 64,822 | |||||||||||||||
| Total tax-exempt securities | 66,242 | 66,438 | 66,632 | 66,828 | 67,022 | 66,533 | 64,822 | |||||||||||||||
| Interest-earning deposits and federal funds sold | 188,894 | 179,508 | 175,256 | 194,722 | 176,323 | 184,565 | 131,816 | |||||||||||||||
| Total interest-earning assets | 8,076,991 | 8,023,237 | 7,991,756 | 8,002,376 | 8,045,691 | 8,023,793 | 7,835,654 | |||||||||||||||
| Other assets | 492,011 | 482,109 | 470,686 | 465,941 | 472,328 | 477,771 | 471,483 | |||||||||||||||
| Total assets | $ | 8,569,002 | $ | 8,505,346 | $ | 8,462,442 | $ | 8,468,317 | $ | 8,518,019 | $ | 8,501,564 | $ | 8,307,137 | ||||||||
| Interest-bearing Liabilities: | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Savings accounts | $ | 110,316 | $ | 115,437 | $ | 124,041 | $ | 134,945 | $ | 146,598 | $ | 121,102 | $ | 153,605 | ||||||||
| NOW accounts | 1,848,285 | 1,907,781 | 2,026,950 | 1,970,555 | 1,972,134 | 1,937,974 | 1,976,238 | |||||||||||||||
| Money market accounts | 1,625,453 | 1,584,308 | 1,754,574 | 2,058,523 | 2,146,649 | 1,754,059 | 2,191,768 | |||||||||||||||
| Certificate of deposit accounts | 2,340,115 | 2,290,669 | 2,046,960 | 1,679,517 | 1,350,683 | 2,091,677 | 1,031,024 | |||||||||||||||
| Total due to depositors | 5,924,169 | 5,898,195 | 5,952,525 | 5,843,540 | 5,616,064 | 5,904,812 | 5,352,635 | |||||||||||||||
| Mortgagors’ escrow accounts | 86,592 | 69,525 | 97,410 | 70,483 | 82,483 | 81,015 | 80,021 | |||||||||||||||
| Total interest-bearing deposits | 6,010,761 | 5,967,720 | 6,049,935 | 5,914,023 | 5,698,547 | 5,985,827 | 5,432,656 | |||||||||||||||
| Borrowings | 803,148 | 804,140 | 706,924 | 789,535 | 963,662 | 776,050 | 1,012,149 | |||||||||||||||
| Total interest-bearing liabilities | 6,813,909 | 6,771,860 | 6,756,859 | 6,703,558 | 6,662,209 | 6,761,877 | 6,444,805 | |||||||||||||||
| Noninterest-bearing demand deposits | 873,276 | 851,677 | 849,682 | 896,462 | 979,836 | 867,667 | 1,019,090 | |||||||||||||||
| Other liabilities | 211,998 | 206,768 | 183,066 | 185,239 | 199,809 | 196,869 | 170,500 | |||||||||||||||
| Total liabilities | 7,899,183 | 7,830,305 | 7,789,607 | 7,785,259 | 7,841,854 | 7,826,413 | 7,634,395 | |||||||||||||||
| Equity | 669,819 | 675,041 | 672,835 | 683,058 | 676,165 | 675,151 | 672,742 | |||||||||||||||
| Total liabilities and equity | $ | 8,569,002 | $ | 8,505,346 | $ | 8,462,442 | $ | 8,468,317 | $ | 8,518,019 | $ | 8,501,564 | $ | 8,307,137 | ||||||||
| Net interest-earning assets | $ | 1,263,082 | $ | 1,251,377 | $ | 1,234,897 | $ | 1,298,818 | $ | 1,383,482 | $ | 1,261,916 | $ | 1,390,849 | ||||||||
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||||||||||
| NET INTEREST INCOME AND NET INTEREST MARGIN | ||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
| Interest Income: | ||||||||||||||||||||||||||||||
| Mortgage loans, net | $ | 72,505 | $ | 68,931 | $ | 63,688 | $ | 62,054 | $ | 60,946 | $ | 267,178 | $ | 228,065 | ||||||||||||||||
| Commercial Business loans, net | 23,111 | 22,535 | 21,689 | 20,835 | 20,087 | 88,170 | 65,222 | |||||||||||||||||||||||
| Total loans, net | 95,616 | 91,466 | 85,377 | 82,889 | 81,033 | 355,348 | 293,287 | |||||||||||||||||||||||
| Taxable securities: | ||||||||||||||||||||||||||||||
| Mortgage-backed securities | 3,217 | 3,031 | 2,976 | 2,281 | 2,425 | 11,505 | 9,414 | |||||||||||||||||||||||
| Other securities | 7,239 | 7,003 | 5,847 | 4,611 | 3,723 | 24,700 | 9,771 | |||||||||||||||||||||||
| Total taxable securities | 10,456 | 10,034 | 8,823 | 6,892 | 6,148 | 36,205 | 19,185 | |||||||||||||||||||||||
| Tax-exempt securities: | ||||||||||||||||||||||||||||||
| Other securities | 482 | 484 | 480 | 477 | 489 | 1,923 | 2,197 | |||||||||||||||||||||||
| Total tax-exempt securities | 482 | 484 | 480 | 477 | 489 | 1,923 | 2,197 | |||||||||||||||||||||||
| Interest-earning deposits and federal funds sold | 2,310 | 2,154 | 1,982 | 1,959 | 1,702 | 8,405 | 2,418 | |||||||||||||||||||||||
| Total interest-earning assets | 108,864 | 104,138 | 96,662 | 92,217 | 89,372 | 401,881 | 317,087 | |||||||||||||||||||||||
| Interest Expense: | ||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||
| Savings accounts | $ | 124 | $ | 130 | $ | 140 | $ | 126 | $ | 59 | $ | 520 | $ | 211 | ||||||||||||||||
| NOW accounts | 17,411 | 16,843 | 16,152 | 13,785 | 9,515 | 64,191 | 15,353 | |||||||||||||||||||||||
| Money market accounts | 15,785 | 14,386 | 14,625 | 14,102 | 10,532 | 58,898 | 19,039 | |||||||||||||||||||||||
| Certificate of deposit accounts | 19,917 | 18,639 | 15,281 | 11,007 | 7,037 | 64,844 | 12,547 | |||||||||||||||||||||||
| Total due to depositors | 53,237 | 49,998 | 46,198 | 39,020 | 27,143 | 188,453 | 47,150 | |||||||||||||||||||||||
| Mortgagors’ escrow accounts | 47 | 68 | 51 | 36 | 83 | 202 | 135 | |||||||||||||||||||||||
| Total interest-bearing deposits | 53,284 | 50,066 | 46,249 | 39,056 | 27,226 | 188,655 | 47,285 | |||||||||||||||||||||||
| Borrowings | 9,394 | 9,543 | 6,934 | 7,799 | 7,843 | 33,670 | 25,725 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 62,678 | 59,609 | 53,183 | 46,855 | 35,069 | 222,325 | 73,010 | |||||||||||||||||||||||
| Net interest income- tax equivalent | $ | 46,186 | $ | 44,529 | $ | 43,479 | $ | 45,362 | $ | 54,303 | $ | 179,556 | $ | 244,077 | ||||||||||||||||
| Included in net interest income above: | ||||||||||||||||||||||||||||||
| Prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap terminations fees | $ | 3,416 | $ | 857 | $ | 315 | $ | 680 | $ | 1,080 | $ | 5,268 | $ | 6,445 | ||||||||||||||||
| Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income | (872 | ) | 1,348 | (205 | ) | 100 | 936 | 371 | 775 | |||||||||||||||||||||
| Purchase accounting adjustments | 461 | 347 | 340 | 306 | 342 | 1,454 | 2,542 | |||||||||||||||||||||||
| Interest-earning Assets Yields: | ||||||||||||||||||||||||||||||
| Mortgage loans, net | 5.41 | % | 5.19 | % | 4.80 | % | 4.65 | % | 4.57 | % | 5.01 | % | 4.34 | % | ||||||||||||||||
| Commercial Business loans, net | 6.11 | 6.01 | 5.70 | 5.42 | 5.21 | 5.81 | 4.38 | |||||||||||||||||||||||
| Total loans, net | 5.57 | 5.37 | 5.00 | 4.83 | 4.71 | 5.19 | 4.35 | |||||||||||||||||||||||
| Taxable securities: | ||||||||||||||||||||||||||||||
| Mortgage-backed securities | 3.02 | 2.78 | 2.65 | 1.99 | 1.77 | 2.60 | 1.64 | |||||||||||||||||||||||
| Other securities | 5.49 | 5.30 | 4.96 | 4.48 | 4.00 | 5.09 | 3.01 | |||||||||||||||||||||||
| Total taxable securities | 4.38 | 4.16 | 3.84 | 3.17 | 2.67 | 3.90 | 2.14 | |||||||||||||||||||||||
| Tax-exempt securities:(1) | ||||||||||||||||||||||||||||||
| Other securities | 2.91 | 2.91 | 2.88 | 2.86 | 2.92 | 2.89 | 3.39 | |||||||||||||||||||||||
| Total tax-exempt securities | 2.91 | 2.91 | 2.88 | 2.86 | 2.92 | 2.89 | 3.39 | |||||||||||||||||||||||
| Interest-earning deposits and federal funds sold | 4.89 | 4.80 | 4.52 | 4.02 | 3.86 | 4.55 | 1.83 | |||||||||||||||||||||||
| Total interest-earning assets(1) | 5.39 | % | 5.19 | % | 4.84 | % | 4.61 | % | 4.44 | % | 5.01 | % | 4.05 | % | ||||||||||||||||
| Interest-bearing Liabilities Yields: | ||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||
| Savings accounts | 0.45 | % | 0.45 | % | 0.45 | % | 0.37 | % | 0.16 | % | 0.43 | % | 0.14 | % | ||||||||||||||||
| NOW accounts | 3.77 | 3.53 | 3.19 | 2.80 | 1.93 | 3.31 | 0.78 | |||||||||||||||||||||||
| Money market accounts | 3.88 | 3.63 | 3.33 | 2.74 | 1.96 | 3.36 | 0.87 | |||||||||||||||||||||||
| Certificate of deposit accounts | 3.40 | 3.25 | 2.99 | 2.62 | 2.08 | 3.10 | 1.22 | |||||||||||||||||||||||
| Total due to depositors | 3.59 | 3.39 | 3.10 | 2.67 | 1.93 | 3.19 | 0.88 | |||||||||||||||||||||||
| Mortgagors’ escrow accounts | 0.22 | 0.39 | 0.21 | 0.20 | 0.40 | 0.25 | 0.17 | |||||||||||||||||||||||
| Total interest-bearing deposits | 3.55 | 3.36 | 3.06 | 2.64 | 1.91 | 3.15 | 0.87 | |||||||||||||||||||||||
| Borrowings | 4.68 | 4.75 | 3.92 | 3.95 | 3.26 | 4.34 | 2.54 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 3.68 | % | 3.52 | % | 3.15 | % | 2.80 | % | 2.11 | % | 3.29 | % | 1.13 | % | ||||||||||||||||
| Net interest rate spread (tax equivalent)(1) | 1.71 | % | 1.67 | % | 1.69 | % | 1.81 | % | 2.33 | % | 1.72 | % | 2.92 | % | ||||||||||||||||
| Net interest margin (tax equivalent)(1) | 2.29 | % | 2.22 | % | 2.18 | % | 2.27 | % | 2.70 | % | 2.24 | % | 3.11 | % | ||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.19 | X | 1.18 | X | 1.18 | X | 1.19 | X | 1.21 | X | 1.19 | X | 1.22 | X | ||||||||||||||||
________________________________
(1) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||
| DEPOSIT and LOAN COMPOSITION | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Deposit Composition | |||||||||||||||||||||||
| 4Q23 vs. | 4Q23 vs. | ||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 3Q23 | 4Q22 | |||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | % Change | % Change | ||||||||||||||||
| Noninterest bearing | $ | 847,416 | $ | 874,420 | $ | 827,820 | $ | 872,254 | $ | 921,238 | (3.1 | ) | % | (8.0 | ) | % | |||||||
| Interest bearing: | |||||||||||||||||||||||
| Certificate of deposit accounts | 2,311,290 | 2,321,369 | 2,232,696 | 1,880,260 | 1,526,338 | (0.4 | ) | 51.4 | |||||||||||||||
| Savings accounts | 108,605 | 112,730 | 118,886 | 128,245 | 143,641 | (3.7 | ) | (24.4 | ) | ||||||||||||||
| Money market accounts | 1,726,404 | 1,551,176 | 1,594,637 | 1,855,781 | 2,099,776 | 11.3 | (17.8 | ) | |||||||||||||||
| NOW accounts | 1,771,164 | 1,749,802 | 1,891,834 | 1,918,977 | 1,746,190 | 1.2 | 1.4 | ||||||||||||||||
| Total interest-bearing deposits | 5,917,463 | 5,735,077 | 5,838,053 | 5,783,263 | 5,515,945 | 3.2 | 7.3 | ||||||||||||||||
| Total due to depositors | 6,764,879 | 6,609,497 | 6,665,873 | 6,655,517 | 6,437,183 | 2.4 | 5.1 | ||||||||||||||||
| Mortgagors’ escrow deposits | 50,382 | 72,012 | 57,817 | 78,573 | 48,159 | (30.0 | ) | 4.6 | |||||||||||||||
| Total deposits | $ | 6,815,261 | $ | 6,681,509 | $ | 6,723,690 | $ | 6,734,090 | $ | 6,485,342 | 2.0 | % | 5.1 | % | |||||||||
Loan Composition
| 4Q23 vs. | 4Q23 vs. | |||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | 3Q23 | 4Q22 | ||||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | % Change | % Change | |||||||||||||||||||||
| Multifamily residential | $ | 2,658,205 | $ | 2,614,219 | $ | 2,593,955 | $ | 2,601,174 | $ | 2,601,384 | 1.7 | % | 2.2 | % | ||||||||||||||
| Commercial real estate | 1,958,252 | 1,953,243 | 1,917,749 | 1,904,293 | 1,913,040 | 0.3 | 2.4 | |||||||||||||||||||||
| One-to-four family ― mixed use property | 530,243 | 537,744 | 542,368 | 549,207 | 554,314 | (1.4 | ) | (4.3 | ) | |||||||||||||||||||
| One-to-four family ― residential | 220,213 | 222,874 | 230,055 | 238,417 | 241,246 | (1.2 | ) | (8.7 | ) | |||||||||||||||||||
| Construction | 58,673 | 59,903 | 57,325 | 60,486 | 70,951 | (2.1 | ) | (17.3 | ) | |||||||||||||||||||
| Mortgage loans | 5,425,586 | 5,387,983 | 5,341,452 | 5,353,577 | 5,380,935 | 0.7 | 0.8 | |||||||||||||||||||||
| Small Business Administration | 20,205 | 21,896 | 22,404 | 22,860 | 23,275 | (7.7 | ) | (13.2 | ) | |||||||||||||||||||
| Commercial business and other | 1,452,518 | 1,487,775 | 1,466,358 | 1,518,756 | 1,521,548 | (2.4 | ) | (4.5 | ) | |||||||||||||||||||
| Commercial Business loans | 1,472,723 | 1,509,671 | 1,488,762 | 1,541,616 | 1,544,823 | (2.4 | ) | (4.7 | ) | |||||||||||||||||||
| Gross loans | 6,898,309 | 6,897,654 | 6,830,214 | 6,895,193 | 6,925,758 | — | (0.4 | ) | ||||||||||||||||||||
| Net unamortized (premiums) and unearned loan (cost) fees(1) | 8,641 | (1,580 | ) | 2,211 | 8,983 | 9,011 | (646.9 | ) | (4.1 | ) | ||||||||||||||||||
| Allowance for credit losses | (40,161 | ) | (39,228 | ) | (38,593 | ) | (38,729 | ) | (40,442 | ) | 2.4 | (0.7 | ) | |||||||||||||||
| Net loans | $ | 6,866,789 | $ | 6,856,846 | $ | 6,793,832 | $ | 6,865,447 | $ | 6,894,327 | 0.1 | % | (0.4 | ) | % | |||||||||||||
______________________________
(1) Includes $3.9 million, $4.4 million, $4.8 million, $5.1 million, and $5.4 million, of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||
| LOAN CLOSINGS and RATES | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Loan Closings | ||||||||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||
| (In thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Multifamily residential | $ | 82,995 | $ | 75,655 | $ | 31,901 | $ | 42,164 | $ | 65,347 | $ | 232,715 | $ | 474,409 | ||||||||
| Commercial real estate | 60,092 | 70,197 | 38,523 | 15,570 | 20,750 | 184,382 | 308,455 | |||||||||||||||
| One-to-four family – mixed use property | 3,319 | 6,028 | 5,812 | 4,938 | 4,489 | 20,097 | 37,598 | |||||||||||||||
| One-to-four family – residential | 1,454 | 1,070 | 63 | 4,296 | 7,485 | 6,883 | 25,059 | |||||||||||||||
| Construction | 8,007 | 6,971 | 8,811 | 10,592 | 7,301 | 34,381 | 31,592 | |||||||||||||||
| Mortgage loans | 155,867 | 159,921 | 85,110 | 77,560 | 105,372 | 478,458 | 877,113 | |||||||||||||||
| Small Business Administration | 1,162 | — | 820 | 318 | 665 | 2,300 | 3,461 | |||||||||||||||
| Commercial business and other | 87,255 | 81,549 | 72,850 | 95,668 | 119,191 | 337,322 | 641,420 | |||||||||||||||
| Commercial Business loans | 88,417 | 81,549 | 73,670 | 95,986 | 119,856 | 339,622 | 644,881 | |||||||||||||||
| Total Closings | $ | 244,284 | $ | 241,470 | $ | 158,780 | $ | 173,546 | $ | 225,228 | $ | 818,080 | $ | 1,521,994 | ||||||||
Weighted Average Rate on Loan Closings
| For the three months ended | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| Loan type | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
| Mortgage loans | 7.55 | % | 7.22 | % | 6.62 | % | 6.30 | % | 5.59 | % | |||||
| Commercial Business loans | 7.93 | 8.00 | 7.76 | 7.58 | 6.57 | ||||||||||
| Total loans | 7.69 | % | 7.48 | % | 7.14 | % | 7.01 | % | 6.10 | % | |||||
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
| ASSET QUALITY | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses | |||||||||||||||||||||||||||||||||||||
| For the three months ended | For the year ended | ||||||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
| Allowance for credit losses – loans | |||||||||||||||||||||||||||||||||||||
| Beginning balances | $ | 39,228 | $ | 38,593 | $ | 38,729 | $ | 40,442 | $ | 41,268 | $ | 40,442 | $ | 37,135 | |||||||||||||||||||||||
| Net loan charge-off (recoveries): | |||||||||||||||||||||||||||||||||||||
| Multifamily residential | (1 | ) | — | — | (1 | ) | 132 | (2 | ) | 131 | |||||||||||||||||||||||||||
| Commercial real estate | — | — | 8 | — | — | 8 | — | ||||||||||||||||||||||||||||||
| One-to-four family – mixed-use property | (1 | ) | — | — | — | — | (1 | ) | — | ||||||||||||||||||||||||||||
| One-to-four family – residential | 9 | (6 | ) | 4 | (36 | ) | 17 | (29 | ) | 15 | |||||||||||||||||||||||||||
| Small Business Administration | (29 | ) | (48 | ) | (158 | ) | (6 | ) | (9 | ) | (241 | ) | 1,007 | ||||||||||||||||||||||||
| Taxi medallion | — | — | — | — | — | — | (447 | ) | |||||||||||||||||||||||||||||
| Commercial business and other | 82 | 12 | 1,706 | 9,277 | 671 | 11,077 | 829 | ||||||||||||||||||||||||||||||
| Total net loan charge-offs (recoveries) | 60 | (42 | ) | 1,560 | 9,234 | 811 | 10,812 | 1,535 | |||||||||||||||||||||||||||||
| Provision (benefit) for loan losses | 993 | 593 | 1,424 | 7,521 | (15 | ) | 10,531 | 4,842 | |||||||||||||||||||||||||||||
| Ending balance | $ | 40,161 | $ | 39,228 | $ | 38,593 | $ | 38,729 | $ | 40,442 | $ | 40,161 | $ | 40,442 | |||||||||||||||||||||||
| Gross charge-offs | $ | 107 | $ | 21 | $ | 1,731 | $ | 9,298 | $ | 1,938 | $ | 11,157 | $ | 3,348 | |||||||||||||||||||||||
| Gross recoveries | 47 | 63 | 171 | 64 | 1,127 | 345 | 1,813 | ||||||||||||||||||||||||||||||
| Allowance for credit losses – loans to gross loans | 0.58 | % | 0.57 | % | 0.57 | % | 0.56 | % | 0.58 | % | 0.58 | % | 0.58 | % | |||||||||||||||||||||||
| Net loan charge-offs (recoveries) to average loans | — | — | 0.09 | 0.54 | 0.05 | 0.16 | 0.02 | ||||||||||||||||||||||||||||||
Nonperforming Assets
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | |||||||||||||||
| Loans 90 Days or More Past Due and Still Accruing: | ||||||||||||||||||||
| Multifamily residential | $ | 1,463 | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Construction | — | — | — | — | 2,600 | |||||||||||||||
| Total Loans 90 Days or more past due and still accruing | 1,463 | — | — | — | 2,600 | |||||||||||||||
| Nonaccrual Loans: | ||||||||||||||||||||
| Multifamily residential | 3,206 | 3,206 | 3,206 | 3,628 | 3,206 | |||||||||||||||
| Commercial real estate | — | — | — | — | 237 | |||||||||||||||
| One-to-four family – mixed-use property(1) | 981 | 1,075 | 790 | 790 | 790 | |||||||||||||||
| One-to-four family – residential | 5,181 | 4,161 | 5,218 | 4,961 | 4,425 | |||||||||||||||
| Small Business Administration | 2,552 | 1,255 | 1,119 | 937 | 937 | |||||||||||||||
| Commercial business and other(1) | 11,789 | 7,708 | 8,304 | 10,860 | 20,187 | |||||||||||||||
| Total Nonaccrual loans | 23,709 | 17,405 | 18,637 | 21,176 | 29,782 | |||||||||||||||
| Total Nonperforming Loans (NPLs) | 25,172 | 17,405 | 18,637 | 21,176 | 32,382 | |||||||||||||||
| Total Nonaccrual HTM Securities | 20,981 | 20,981 | 20,981 | 20,981 | 20,981 | |||||||||||||||
| Total Nonperforming Assets | $ | 46,153 | $ | 38,386 | $ | 39,618 | $ | 42,157 | $ | 53,363 | ||||||||||
| Nonperforming Assets to Total Assets | 0.54 | % | 0.45 | % | 0.47 | % | 0.50 | % | 0.63 | % | ||||||||||
| Allowance for Credit Losses to NPLs | 159.5 | % | 225.4 | % | 207.1 | % | 182.9 | % | 124.9 | % | ||||||||||
______________________________
(1) Adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023; Not included in the above analysis are nonaccrual performing TDR one-to-four family – mixed use property loans totaling $0.2 million in 4Q22; nonaccrual performing TDR commercial business loans totaling less than $0.1 million in 4Q22.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS |
Non-cash Fair Value Adjustments to GAAP Earnings
The variance in GAAP and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to borrowings carried at fair value under the fair value option.
Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense and Tangible Book Value per common share are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears below in tabular form. The Company believes that these measures are useful for both investors and management to understand the effects of certain interest and noninterest items and provide an alternative view of the Company’s performance over time and in comparison, to the Company’s competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as this measure is commonly used by financial institutions, regulators, and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison, to its competitors. These measures should not be viewed as a substitute for total shareholders’ equity.
These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS | |||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||
| For the three months ended | For the year ended | ||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, | December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||
| except per share data) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||
| GAAP income before income taxes | $ | 11,754 | $ | 10,752 | $ | 11,872 | $ | 5,455 | $ | 12,819 | $ | 39,833 | $ | 104,852 | |||||||||||||||||||||||
| Net (gain) loss from fair value adjustments (Noninterest income (loss)) | (906 | ) | 1,246 | (294 | ) | (2,619 | ) | 622 | (2,573 | ) | (5,728 | ) | |||||||||||||||||||||||||
| Net loss on sale of securities (Noninterest income (loss)) | — | — | — | — | 10,948 | — | 10,948 | ||||||||||||||||||||||||||||||
| Life insurance proceeds (Noninterest income (loss)) | (697 | ) | (23 | ) | (561 | ) | — | (286 | ) | (1,281 | ) | (1,822 | ) | ||||||||||||||||||||||||
| Net gain on disposition of assets (Noninterest income (loss)) | — | — | — | — | (104 | ) | — | (104 | ) | ||||||||||||||||||||||||||||
| Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income) | 872 | (1,348 | ) | 205 | (100 | ) | (936 | ) | (371 | ) | (775 | ) | |||||||||||||||||||||||||
| Net amortization of purchase accounting adjustments and intangibles (Various) | (355 | ) | (237 | ) | (227 | ) | (188 | ) | (219 | ) | (1,007 | ) | (2,030 | ) | |||||||||||||||||||||||
| Miscellaneous expense (Professional services) | 526 | — | — | — | — | 526 | — | ||||||||||||||||||||||||||||||
| Core income before taxes | 11,194 | 10,390 | 10,995 | 2,548 | 22,844 | 35,127 | 105,341 | ||||||||||||||||||||||||||||||
| Provision for core income taxes | 3,648 | 2,819 | 3,083 | 659 | 5,445 | 10,209 | 28,502 | ||||||||||||||||||||||||||||||
| Core net income | $ | 7,546 | $ | 7,571 | $ | 7,912 | $ | 1,889 | $ | 17,399 | $ | 24,918 | $ | 76,839 | |||||||||||||||||||||||
| GAAP diluted earnings per common share | $ | 0.27 | $ | 0.26 | $ | 0.29 | $ | 0.13 | $ | 0.34 | $ | 0.96 | $ | 2.50 | |||||||||||||||||||||||
| Net (gain) loss from fair value adjustments, net of tax | (0.02 | ) | 0.03 | (0.01 | ) | (0.06 | ) | 0.02 | (0.06 | ) | (0.14 | ) | |||||||||||||||||||||||||
| Net loss on sale of securities, net of tax | — | — | — | — | 0.27 | — | 0.26 | ||||||||||||||||||||||||||||||
| Life insurance proceeds | (0.02 | ) | — | (0.02 | ) | — | (0.01 | ) | (0.04 | ) | (0.06 | ) | |||||||||||||||||||||||||
| Net (gain) loss from fair value adjustments on qualifying hedges, net of tax | 0.02 | (0.03 | ) | — | — | (0.02 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||||||||||||||
| Net amortization of purchase accounting adjustments, net of tax | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.05 | ) | |||||||||||||||||||||||
| Miscellaneous expense, net of tax | 0.01 | — | — | — | — | 0.01 | — | ||||||||||||||||||||||||||||||
| Core diluted earnings per common share(1) | $ | 0.25 | $ | 0.25 | $ | 0.26 | $ | 0.06 | $ | 0.57 | $ | 0.83 | $ | 2.49 | |||||||||||||||||||||||
| Core net income, as calculated above | $ | 7,546 | $ | 7,571 | $ | 7,912 | $ | 1,889 | $ | 17,399 | $ | 24,918 | $ | 76,839 | |||||||||||||||||||||||
| Average assets | 8,569,002 | 8,505,346 | 8,462,442 | 8,468,317 | 8,518,019 | 8,501,564 | 8,307,137 | ||||||||||||||||||||||||||||||
| Average equity | 669,819 | 675,041 | 672,835 | 683,058 | 676,165 | 675,151 | 672,742 | ||||||||||||||||||||||||||||||
| Core return on average assets(2) | 0.35 | % | 0.36 | % | 0.37 | % | 0.09 | % | 0.82 | % | 0.29 | % | 0.92 | % | |||||||||||||||||||||||
| Core return on average equity(2) | 4.51 | % | 4.49 | % | 4.70 | % | 1.11 | % | 10.29 | % | 3.69 | % | 11.42 | % | |||||||||||||||||||||||
________________________________
(1) Core diluted earnings per common share may not foot due to rounding.
(2) Ratios are calculated on an annualized basis.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP REVENUE and PRE-PROVISION | ||||||||||||||||||||||||||||||||
| PRE-TAX NET REVENUE | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
| GAAP Net interest income | $ | 46,085 | $ | 44,427 | $ | 43,378 | $ | 45,262 | $ | 54,201 | $ | 179,152 | $ | 243,616 | ||||||||||||||||||
| Net (gain) loss from fair value adjustments on qualifying hedges | 872 | (1,348 | ) | 205 | (100 | ) | (936 | ) | (371 | ) | (775 | ) | ||||||||||||||||||||
| Net amortization of purchase accounting adjustments | (461 | ) | (347 | ) | (340 | ) | (306 | ) | (342 | ) | (1,454 | ) | (2,542 | ) | ||||||||||||||||||
| Core Net interest income | $ | 46,496 | $ | 42,732 | $ | 43,243 | $ | 44,856 | $ | 52,923 | $ | 177,327 | $ | 240,299 | ||||||||||||||||||
| GAAP Noninterest income (loss) | $ | 7,402 | $ | 3,309 | $ | 5,020 | $ | 6,857 | $ | (7,652 | ) | $ | 22,588 | $ | 10,009 | |||||||||||||||||
| Net (gain) loss from fair value adjustments | (906 | ) | 1,246 | (294 | ) | (2,619 | ) | 622 | (2,573 | ) | (5,728 | ) | ||||||||||||||||||||
| Net loss on sale of securities | — | — | — | — | 10,948 | — | 10,948 | |||||||||||||||||||||||||
| Life insurance proceeds | (697 | ) | (23 | ) | (561 | ) | — | (286 | ) | (1,281 | ) | (1,822 | ) | |||||||||||||||||||
| Net gain on sale of assets | — | — | — | — | (104 | ) | — | (104 | ) | |||||||||||||||||||||||
| Core Noninterest income | $ | 5,799 | $ | 4,532 | $ | 4,165 | $ | 4,238 | $ | 3,528 | $ | 18,734 | $ | 13,303 | ||||||||||||||||||
| GAAP Noninterest expense | $ | 40,735 | $ | 36,388 | $ | 35,110 | $ | 39,156 | $ | 33,742 | $ | 151,389 | $ | 143,692 | ||||||||||||||||||
| Net amortization of purchase accounting adjustments | (106 | ) | (110 | ) | (113 | ) | (118 | ) | (123 | ) | (447 | ) | (512 | ) | ||||||||||||||||||
| Miscellaneous expense | (526 | ) | — | — | — | — | (526 | ) | — | |||||||||||||||||||||||
| Core Noninterest expense | $ | 40,103 | $ | 36,278 | $ | 34,997 | $ | 39,038 | $ | 33,619 | $ | 150,416 | $ | 143,180 | ||||||||||||||||||
| Net interest income | $ | 46,085 | $ | 44,427 | $ | 43,378 | $ | 45,262 | $ | 54,201 | $ | 179,152 | $ | 243,616 | ||||||||||||||||||
| Noninterest income (loss) | 7,402 | 3,309 | 5,020 | 6,857 | (7,652 | ) | 22,588 | 10,009 | ||||||||||||||||||||||||
| Noninterest expense | (40,735 | ) | (36,388 | ) | (35,110 | ) | (39,156 | ) | (33,742 | ) | (151,389 | ) | (143,692 | ) | ||||||||||||||||||
| Pre-provision pre-tax net revenue | $ | 12,752 | $ | 11,348 | $ | 13,288 | $ | 12,963 | $ | 12,807 | $ | 50,351 | $ | 109,933 | ||||||||||||||||||
| Core: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 46,496 | $ | 42,732 | $ | 43,243 | $ | 44,856 | $ | 52,923 | $ | 177,327 | $ | 240,299 | ||||||||||||||||||
| Noninterest income | 5,799 | 4,532 | 4,165 | 4,238 | 3,528 | 18,734 | 13,303 | |||||||||||||||||||||||||
| Noninterest expense | (40,103 | ) | (36,278 | ) | (34,997 | ) | (39,038 | ) | (33,619 | ) | (150,416 | ) | (143,180 | ) | ||||||||||||||||||
| Pre-provision pre-tax net revenue | $ | 12,192 | $ | 10,986 | $ | 12,411 | $ | 10,056 | $ | 22,832 | $ | 45,645 | $ | 110,422 | ||||||||||||||||||
| Efficiency Ratio | 76.7 | % | 76.8 | % | 73.8 | % | 79.5 | % | 59.6 | % | 76.7 | % | 56.5 | % | ||||||||||||||||||
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN | ||||||||||||||||||||||||||||||||||
| to CORE NET INTEREST INCOME | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||
| GAAP net interest income | $ | 46,085 | $ | 44,427 | $ | 43,378 | $ | 45,262 | $ | 54,201 | $ | 179,152 | $ | 243,616 | ||||||||||||||||||||
| Net (gain) loss from fair value adjustments on qualifying hedges | 872 | (1,348 | ) | 205 | (100 | ) | (936 | ) | (371 | ) | (775 | ) | ||||||||||||||||||||||
| Net amortization of purchase accounting adjustments | (461 | ) | (347 | ) | (340 | ) | (306 | ) | (342 | ) | (1,454 | ) | (2,542 | ) | ||||||||||||||||||||
| Tax equivalent adjustment | 101 | 102 | 101 | 100 | 102 | 404 | 461 | |||||||||||||||||||||||||||
| Core net interest income FTE | $ | 46,597 | $ | 42,834 | $ | 43,344 | $ | 44,956 | $ | 53,025 | $ | 177,731 | $ | 240,760 | ||||||||||||||||||||
| Total average interest-earning assets(1) | $ | 8,080,550 | $ | 8,027,201 | $ | 7,996,067 | $ | 8,006,970 | $ | 8,050,601 | $ | 8,027,898 | $ | 7,841,407 | ||||||||||||||||||||
| Core net interest margin FTE | 2.31 | % | 2.13 | % | 2.17 | % | 2.25 | % | 2.63 | % | 2.21 | % | 3.07 | % | ||||||||||||||||||||
| GAAP interest income on total loans, net | $ | 95,616 | $ | 91,466 | $ | 85,377 | $ | 82,889 | $ | 81,033 | $ | 355,348 | $ | 293,287 | ||||||||||||||||||||
| Net (gain) loss from fair value adjustments on qualifying hedges – loans | 978 | (1,379 | ) | 157 | (101 | ) | (936 | ) | (345 | ) | (775 | ) | ||||||||||||||||||||||
| Net amortization of purchase accounting adjustments | (484 | ) | (358 | ) | (345 | ) | (316 | ) | (372 | ) | (1,503 | ) | (2,628 | ) | ||||||||||||||||||||
| Core interest income on total loans, net | $ | 96,110 | $ | 89,729 | $ | 85,189 | $ | 82,472 | $ | 79,725 | $ | 353,500 | $ | 289,884 | ||||||||||||||||||||
| Average total loans, net(1) | $ | 6,872,115 | $ | 6,817,642 | $ | 6,834,644 | $ | 6,876,495 | $ | 6,886,900 | $ | 6,850,124 | $ | 6,748,165 | ||||||||||||||||||||
| Core yield on total loans | 5.59 | % | 5.26 | % | 4.99 | % | 4.80 | % | 4.63 | % | 5.16 | % | 4.30 | % | ||||||||||||||||||||
________________________________
(1) Excludes purchase accounting average balances for all periods presented.
| FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES | |||||||||||||||||||||||||
| CALCULATION OF TANGIBLE STOCKHOLDERS’ | |||||||||||||||||||||||||
| COMMON EQUITY to TANGIBLE ASSETS | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||||||
| Total Equity | $ | 669,837 | $ | 666,521 | $ | 670,247 | $ | 672,345 | $ | 677,157 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||||||
| Core deposit intangibles | (1,537 | ) | (1,651 | ) | (1,769 | ) | (1,891 | ) | (2,017 | ) | |||||||||||||||
| Tangible Stockholders’ Common Equity | $ | 650,664 | $ | 647,234 | $ | 650,842 | $ | 652,818 | $ | 657,504 | |||||||||||||||
| Total Assets | $ | 8,537,236 | $ | 8,579,375 | $ | 8,474,852 | $ | 8,479,734 | $ | 8,422,946 | |||||||||||||||
| Less: | |||||||||||||||||||||||||
| Goodwill | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||||||
| Core deposit intangibles | (1,537 | ) | (1,651 | ) | (1,769 | ) | (1,891 | ) | (2,017 | ) | |||||||||||||||
| Tangible Assets | $ | 8,518,063 | $ | 8,560,088 | $ | 8,455,447 | $ | 8,460,207 | $ | 8,403,293 | |||||||||||||||
| Tangible Stockholders’ Common Equity to Tangible Assets | 7.64 | % | 7.56 | % | 7.70 | % | 7.72 | % | 7.82 | % | |||||||||||||||
Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400
