Loan Growth Despite Rising Rates
John R. Buran, President and CEO Commentary
UNIONDALE, N.Y., Oct. 25, 2022 (GLOBE NEWSWIRE) — The Company reported third quarter 2022 GAAP EPS of $0.76, down 6.2% YoY, with a ROAA of 1.11%, and ROAE of 13.91%. Core 3Q22 EPS was $0.62, a lower of 29.5% YoY, with a ROAA of 0.90% and the ROAE of 11.24%.
“We supported customers by achieving loan growth of 3.1% QoQ, excluding the impact of PPP loans, while increasing the origination yield by 68 bps for the quarter, as the quarter was dominated by Fed rate increases. Credit quality, a hallmark of the Company, remained solid with only 2 bps of net charge-offs this quarter. The Company opportunistically raised $65 million of subordinated debt capital to lock in funding at an attractive rate. The Fed rate movements resulted in the NIM compressing 28 bps during the third quarter given the rapid rise in rates. Despite the NIM pressure in the short term, loans are expected to reprice higher over time. Approximately $1.0 billion or 15% of loans reprice within 90 days of index changes and $1.9 billion or 27% of loans are expected to contractually reprice higher by 200 bps through the end of 2024. There are over $500 million of funding swaps that have attractive rates now and will reprice lower by approximately 70 bps through 2023. Our community focus continued to shine this quarter as we supported several events, including the Flushing and Port Jefferson Dragon Boat festivals and our Harvest Moon Reception.”
– John R. Buran, President and CEO |
Loan Closings up 90.1% YoY; NIM Declined QoQ. Period finish web loans, excluding PPP, elevated 3.1% QoQ, with balanced development between actual property and business business and different loans. Loan closings, excluding PPP, had been up 90.1% YoY, whereas compensation speeds declined each YoY and QoQ. Despite the mortgage closings growing, web curiosity revenue of $61.2 million decreased 3.4% YoY and 5.4% QoQ, primarily as a result of elevated funding prices. NIM FTE was 3.07% in 3Q22 in comparison with 3.35% in 2Q22 and three.34% a yr in the past. Core NIM FTE decreased by 24 bps to three.03% YoY and 30 bps QoQ. The Company employed 46 folks, together with 20 income producers, since March 31, 2021 from establishments concerned with financial institution mergers.
Returned 40% of Earnings in 3Q22; Tangible Book Value Per Share Increased 3% YoY. The Company repurchased 131,174 shares of widespread inventory at a mean worth of $20.47 in the course of the quarter. Book worth and tangible ebook worth per share had been $22.47 and $21.81, respectively, whereas TCE/TA1 was 7.62% at September 30, 2022 in comparison with 7.82% at June 30, 2022.
3Q22 | 2Q22 | 1Q22 | 4Q21 | 3Q21 | ||||||||||||||
GAAP: | ||||||||||||||||||
EPS | $0.76 | $0.81 | $0.58 | $0.58 | $0.81 | |||||||||||||
ROAA (%) | 1.11 | 1.22 | 0.91 | 0.89 | 1.26 | |||||||||||||
ROAE (%) | 13.91 | 15.00 | 10.83 | 10.77 | 15.42 | |||||||||||||
NIM FTE3 (%) | 3.07 | 3.35 | 3.36 | 3.29 | 3.34 | |||||||||||||
Core: | ||||||||||||||||||
EPS | $0.62 | $0.70 | $0.61 | $0.67 | $0.88 | |||||||||||||
ROAA (%) | 0.90 | 1.05 | 0.94 | 1.04 | 1.38 | |||||||||||||
ROAE (%) | 11.24 | 12.90 | 11.27 | 12.49 | 16.88 | |||||||||||||
Core NIM FTE (%) | 3.03 | 3.33 | 3.31 | 3.21 | 3.27 | |||||||||||||
Credit Quality: | ||||||||||||||||||
NPAs/Loans&REO (%) | 0.72 | 0.72 | 0.21 | 0.23 | 0.31 | |||||||||||||
ACLs/Loans (%) | 0.59 | 0.58 | 0.57 | 0.56 | 0.55 | |||||||||||||
ACLs/NPLs (%) | 142.29 | 141.06 | 266.12 | 248.66 | 179.86 | |||||||||||||
NCOs/Avg Loans (%) | 0.02 | (0.03 | ) | 0.06 | – | (0.04 | ) | |||||||||||
Balance Sheet: | ||||||||||||||||||
Avg Loans ($B) | $6.9 | $6.6 | $6.6 | $6.6 | $6.6 | |||||||||||||
Avg Dep ($B) | $6.3 | $6.4 | $6.4 | $6.5 | $6.4 | |||||||||||||
Book Value/Share | $22.47 | $22.38 | $22.26 | $22.26 | $21.78 | |||||||||||||
Tangible BV/Share | $21.81 | $21.71 | $21.61 | $21.61 | $21.13 | |||||||||||||
TCE/TA (%) | 7.62 | 7.82 | 8.05 | 8.22 | 8.04 | |||||||||||||
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”)
- Period finish web loans, excluding PPP, elevated 3.1% QoQ and 6.8% YoY; mortgage closings had been $463.7 million at 4.60% in 3Q22, down 8.0% from report ranges QoQ, however up 90.1% YoY whereas the yield elevated 68 bps QoQ and 96 bps YoY
- Loan pipeline decreased 41.8% YoY to $309.1 million as we grow to be extra selective in phrases of charge and collateral sort and debtors adjusted to increased charges
- Issued $65 million of subordinated notes at 6.00% in the course of the 3Q22
- NPAs elevated to $50.0 million from $48.9 million at 2Q22 and from $20.2 million at 3Q21
- Provision for credit score losses was $2.1 million in 3Q22 in comparison with a profit for credit score losses of $6.9 million in 3Q21; web charge-offs had been $0.3 million in 3Q22 in comparison with web recoveries of $0.6 million in 3Q21
- Net curiosity revenue decreased 5.4% QoQ and three.4% YoY to $61.2 million; Core web curiosity revenue declined 6.2% QoQ and a couple of.7% YoY to $60.4 million
- Net curiosity margin FTE decreased 28 bps QoQ and 27 bps YoY to three.07%; Core web curiosity margin FTE decreased 30 bps QoQ and 24 bps YoY to three.03%; The decline in GAAP and Core NIM QoQ was primarily pushed by our legal responsibility delicate steadiness sheet leading to liabilities repricing quicker than belongings over the close to time period however reversing as loans reprice over the subsequent couple of years
- Average deposits, together with mortgage escrow, decreased 2.6% QoQ and a couple of.1% YoY to $6.3 billion, with core deposits comprising 83.1% of complete common deposits
- Signed a lease to open a brand new department in Brooklyn increasing our Asian banking footprint
- Tangible Common Equity to Tangible Assets was 7.62% down from 7.82% at 2Q22; the change in collected different complete loss, web of taxes (primarily from rising charges) impacted this ratio by 18 bps in 3Q22 in comparison with 2Q22
- Repurchased 131,174 shares at a mean worth of $20.47; dividends and share repurchases had been 40% of web revenue in 3Q22
Income Statement Highlights |
YoY | QoQ | ||||||||||||||||||||||||||
($000s, besides EPS) | 3Q22 | 2Q22 | 1Q22 | 4Q21 | 3Q21 | Change | Change | ||||||||||||||||||||
Net Interest Income | $61,206 | $64,730 | $63,479 | $62,674 | $63,364 | (3.4 | ) | % | (5.4 | ) | % | ||||||||||||||||
Provision (Benefit) for Credit Losses | 2,145 | 1,590 | 1,358 | 761 | (6,927 | ) | (131.0 | ) | 34.9 | ||||||||||||||||||
Noninterest Income (Loss) | 8,995 | 7,353 | 1,313 | (280 | ) | 866 | 938.7 | 22.3 | |||||||||||||||||||
Noninterest Expense | 35,634 | 35,522 | 38,794 | 38,807 | 36,345 | (2.0 | ) | 0.3 | |||||||||||||||||||
Income Before Income Taxes | 32,422 | 34,971 | 24,640 | 22,826 | 34,812 | (6.9 | ) | (7.3 | ) | ||||||||||||||||||
Provision for Income Taxes | 8,980 | 9,936 | 6,421 | 4,743 | 9,399 | (4.5 | ) | (9.6 | ) | ||||||||||||||||||
Net Income | $23,442 | $25,035 | $18,219 | $18,083 | $25,413 | (7.8 | ) | (6.4 | ) | ||||||||||||||||||
Diluted EPS | $0.76 | $0.81 | $0.58 | $0.58 | $0.81 | (6.2 | ) | (6.2 | ) | ||||||||||||||||||
Avg. Diluted Shares (000s) | 30,695 | 30,937 | 31,254 | 31,353 | 31,567 | (2.8 | ) | (0.8 | ) | ||||||||||||||||||
Core Net Income1 | $18,953 | $21,518 | $18,969 | $20,968 | $27,829 | (31.9 | ) | (11.9 | ) | ||||||||||||||||||
Core EPS1 | $0.62 | $0.70 | $0.61 | $0.67 | $0.88 | (29.5 | ) | (11.4 | ) |
1 See Reconciliation of GAAP Earnings and Core Earnings
Net curiosity revenue totaled $61.2 million in 3Q22 in comparison with $64.7 million in 2Q22, $63.5 million in 1Q22, $62.7 million in 4Q21, and $63.4 million in 3Q21.
- Net curiosity margin, FTE (“NIM”) of 3.07% decreased 27 bps YoY and 28 bps QoQ
- Prepayment penalty revenue from loans and securities, web reversals and recoveries of curiosity from nonaccrual loans, web beneficial properties and losses from truthful worth changes on qualifying hedges, and buy accounting accretion totaled $2.2 million (11 bps to the NIM) in 3Q22 in comparison with $2.6 million (13 bps) in 2Q22, $2.6 million (14 bps) in 1Q22, $3.1 million (16 bps) in 4Q21, and $3.4 million (19 bps) in 3Q21
- Excluding the gadgets within the earlier bullet, web curiosity margin was 2.96% in 3Q22, 3.22% in 2Q22 and in 1Q22, 3.13% in 4Q21, and three.15% in 3Q21
The Company recorded a provision for credit score losses of $2.1 million in 3Q22, $1.6 million in 2Q22, $1.4 million in 1Q22, and $0.8 million in 4Q21 in comparison with a profit for credit score losses of $6.9 million in 3Q21.
- 3Q22 provision for credit score losses of $2.1 million was primarily on account of elevated reserves on two beforehand recognized credit and mortgage development
- Net charge-offs (recoveries) had been $0.3 million in 3Q22 (2 bps of common loans), $(0.5) million in 2Q22 ((3) bps of common loans), $0.9 million in 1Q22 (6 bps of common loans), $(29) thousand in 4Q21 (negligible as in comparison with common loans), and $(0.6) million in 3Q21 ((4) bps of common loans)
Noninterest revenue (loss) was $9.0 million in 3Q22, $7.4 million in 2Q22, $1.3 million in 1Q22, $(0.3) million in 4Q21, and $0.9 million in 3Q21.
- Noninterest revenue included web beneficial properties (losses) from truthful worth changes of $5.6 million in 3Q22 or $0.13 per share, web of tax, $2.5 million in 2Q22 or $0.06 per share, web of tax, $(1.8) million in 1Q22 or $(0.04) per share, web of tax, $(5.1) million in 4Q21 or $(0.13) per share, web of tax, and $(2.3) million in 3Q21 or $(0.05) per share, web of tax
- Life insurance proceeds had been $1.5 million ($0.05 per share) in 2Q22
- Absent all above gadgets and different immaterial changes, core noninterest revenue was $3.4 million in 3Q22, up 6.4% YoY, and a couple of.6% QoQ
- Included in 4Q21 core noninterest revenue was a one-time $2.0 million ($0.05 per share, web of tax) dividend obtained on retirement plan investments
Noninterest expense totaled $35.6 million in 3Q22 (a lower of 2.0% YoY, however a rise of 0.3% QoQ) in comparison with $35.5 million in 2Q22, $38.8 million in 1Q22, $38.8 million in 4Q21, and $36.3 million in 3Q21.
- Other working bills embody $0.6 million discount in reserves for unfunded commitments in 3Q22
- Included in 1Q22 noninterest expense was $4.3 million of seasonal compensation expense; 4Q21 noninterest expense included a one-time $4.3 million ($0.11 per share, web of tax) of elevated compensation and advantages for all staff on account of a report yr of earnings in 2021 and worker efficiency by way of the pandemic
- Noninterest expense included $17 thousand pre-tax merger profit (<$0.01 per share, web of tax) in 4Q21 and $2.1 million of pre-tax merger costs ($0.05 per share, web of tax) in 3Q21
- Excluding the results of the merger and different immaterial changes, core working bills had been $35.5 million in 3Q22, up 4.1% YoY and 0.3% QoQ
- GAAP noninterest expense to common belongings was 1.69% in 3Q22, 1.73% in 2Q22, 1.93% in 1Q22, 1.92percentin 4Q21, and 1.80% in 3Q21
The provision for revenue taxes was $9.0 million in 3Q22 in comparison with $9.9 million in 2Q22, $6.4 million in 1Q22, $4.7 million in 4Q21, and $9.4 million in 3Q21.
- The efficient tax charge was 27.7% in 3Q22, 28.4% in 2Q22, 26.1% in 1Q22, 20.8% in 4Q21, and 27.0% in 3Q21
- The 2Q22 efficient tax charge features a loss of a sure state and metropolis tax deductions and a decision of sure examinations by taxing authorities
- The 4Q21 efficient tax charge declined on account of decrease ranges of taxable state revenue and better share of everlasting variations
Balance Sheet, Credit Quality, and Capital Highlights |
YoY | QoQ | |||||||||||||||||||||||
3Q22 | 2Q22 | 1Q22 | 4Q21 | 3Q21 | Change | Change | ||||||||||||||||||
Average Loans And Deposits ($MM) | ||||||||||||||||||||||||
Loans | $6,861 | $6,640 | $6,579 | $6,558 | $6,633 | 3.4 | % | 3.3 | % | |||||||||||||||
Deposits | 6,277 | 6,441 | 6,410 | 6,459 | 6,408 | (2.1 | ) | (2.6 | ) | |||||||||||||||
Credit Quality ($000s) | ||||||||||||||||||||||||
Nonperforming Loans | $29,003 | $27,948 | $14,066 | $14,934 | $20,217 | 43.5 | % | 3.8 | % | |||||||||||||||
Nonperforming Assets | 49,984 | 48,929 | 14,066 | 14,934 | 20,217 | 147.2 | 2.2 | |||||||||||||||||
Criticized and Classified Loans | 61,684 | 57,145 | 59,548 | 57,650 | 68,913 | (10.5 | ) | 7.9 | ||||||||||||||||
Criticized and Classified Assets | 82,665 | 78,125 | 80,527 | 78,628 | 89,889 | (8.0 | ) | 5.8 | ||||||||||||||||
Troubled Debt Restructured Loans | 14,757 | 14,758 | 15,124 | 12,714 | 13,097 | 12.7 | (0.0 | ) | ||||||||||||||||
Allowance for Credit Losses/Loans (%) | 0.59 | 0.58 | 0.57 | 0.56 | 0.55 | 4 | bps | 1 | bp | |||||||||||||||
Capital | ||||||||||||||||||||||||
Book Value/Share | $22.47 | $22.38 | $22.26 | $22.26 | $21.78 | 3.2 | % | 0.4 | % | |||||||||||||||
Tangible Book Value/Share | 21.81 | 21.71 | 21.61 | 21.61 | 21.13 | 3.2 | 0.5 | |||||||||||||||||
Tang. Common Equity/Tang. Assets (%) | 7.62 | 7.82 | 8.05 | 8.22 | 8.04 | (42 | ) | bps | (20 | ) | bps | |||||||||||||
Leverage Ratio (%) | 8.74 | 8.91 | 9.05 | 8.98 | 8.83 | (9 | ) | (17 | ) |
Average loans had been $6.9 billion, a rise of 3.4% YoY and three.3% QoQ.
- Period finish web loans, excluding PPP loans, totaled $6.9 billion, up 6.8% YoY and three.1% QoQ
- Total mortgage closings had been $463.7 million in 3Q22, $503.8 million in 2Q22, $329.3 million in 1Q22, $362.7 million in 4Q21, and $243.9 million in 3Q21
- The mortgage pipeline was $309.1 million at September 30, 2022, down 41.8% YoY and 46.9% QoQ
Average Deposits totaled $6.3 billion, lowering 2.1% YoY and a couple of.6% QoQ.
- Average core deposits (non-CD deposits) had been 83.1% of complete common deposits (together with escrow deposits) in 3Q22, in comparison with 83.8% a yr in the past
- Average noninterest bearing deposits elevated 12.5% YoY and 0.5% QoQ and comprised 16.7% of complete common deposits (together with escrow deposits) in 3Q22 in comparison with 14.6% a yr in the past
Credit Quality: Nonperforming loans held on the finish of every quarter totaled $29.0 million at 3Q22, $27.9 million at 2Q22, $14.1 million at 1Q22, $14.9 million at 4Q21, and $20.2 million at 3Q21.
- Criticized and labeled had been 89 bps of loans at 3Q22 in comparison with 85 bps at 2Q22, 90 bps at 1Q22, 87 bps at 4Q21, and 104 bps at 3Q21
- Criticized and labeled belongings are composed of criticized and labeled loans, as detailed above, plus one criticized funding safety totaling $21.0 million in every quarter of 3Q22, 2Q22, 1Q22, 4Q21, and 3Q21
- Over 88% of gross loans are collateralized by actual property with a mean loan-to-value ratio of <37% as of September 30, 2022
- Allowance for credit score losses had been 142.3% of nonperforming loans at 3Q22 in comparison with 141.1% at 2Q22 and 179.9% a yr in the past
Capital: Book worth per widespread share was $22.47 at 3Q22, up 0.4% QoQ and three.2% YoY; tangible ebook worth per widespread share, a non-GAAP measure, was $21.81 at 3Q22, up 0.5% QoQ and three.2% YoY.
- The Company paid a dividend of $0.22 per share and repurchased 131,174 shares at a mean worth of $20.47 in 3Q22
- At the tip of 3Q22, 969,324 shares stay topic to repurchase beneath the approved inventory repurchase program, which has no expiration or most greenback restrict
- Tangible widespread fairness to tangible belongings was 7.62% at 3Q22 in comparison with 7.82% at 2Q22 and eight.04% at 3Q21
- The Company and the Bank stay nicely capitalized beneath all relevant regulatory necessities
- The leverage ratio was 8.74% at 3Q22 in comparison with 8.91% at 2Q22 and eight.83% at 3Q21
Conference Call Information And Fourth Quarter Earnings Release Date |
Conference Call Information:
- John R. Buran, President and Chief Executive Officer, and Susan Ok. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a convention name on Wednesday, October 26, 2022, at 9:30 AM (ET) to debate the Company’s third quarter 2022 outcomes and technique.
- Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
- Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=xiCFFixk
- Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
- Replay Access Code: 8005279
- The convention name can be concurrently webcast and archived
Fourth Quarter 2022 Earnings Release Date:
The Company plans to launch Fourth Quarter and full yr 2022 monetary outcomes after the market shut on January 24, 2023; adopted by a convention name at 9:30 AM (ET) on January 25, 2023.
An in depth announcement can be issued previous to the fourth quarter’s shut confirming the date and time of the earnings launch.
About Flushing Financial Corporation
Flushing Financial Corporation (Nasdaq: FFIC) is the holding firm for Flushing Bank®, an FDIC insured, New York State—chartered business financial institution that operates banking places of work in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been constructing relationships with households, business house owners, and communities since 1929. Today, it provides the merchandise, companies, and conveniences related to giant business banks, together with a full complement of deposit, mortgage, tools finance, and money administration companies. Rewarding prospects with personalised consideration and bankers that may talk within the languages prevalent inside these multicultural markets is what makes the Bank uniquely completely different. As an Equal Housing Lender and chief in actual property lending, the Bank’s skilled lending groups create mortgage options for actual property house owners and property managers each inside and out of doors the New York City metropolitan space. The Bank additionally fosters relationships with customers nationwide by way of its on-line banking division with the iGObanking® and BankPurely® manufacturers.
Additional data on Flushing Bank and Flushing Financial Corporation could also be obtained by visiting the Company’s web site at FlushingBank.com. Flushing Financial Corporation’s earnings launch and presentation slides can be out there previous to the convention name at www.FlushingBank.com beneath Investor Relations.
“Safe Harbor” Statement beneath the Private Securities Litigation Reform Act of 1995: Statements on this Press Release regarding plans, methods, financial efficiency and developments, projections of outcomes of particular actions or investments and different statements that aren’t descriptions of historic info could also be forward-looking statements throughout the that means 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 data is inherently topic to dangers and uncertainties, and precise outcomes may differ materially from these presently anticipated on account of a quantity of elements, which embody, however should not restricted to, threat elements mentioned within the Company’s Annual Report on Form 10-Ok for the fiscal yr ended December 31, 2021 and in different paperwork filed by the Company with the Securities and Exchange Commission infrequently. Forward-looking statements could also be recognized by phrases reminiscent of “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or related phrases or the damaging of these phrases. Although we imagine that the expectations mirrored within the forward-looking statements are cheap, we can not assure future outcomes, ranges of exercise, efficiency or achievements. The Company has no obligation to replace these forward-looking statements.
Investor Contact: Susan Ok. Cullen, SEVP, CFO and Treasurer, 718-961-5400
#FF
– Statistical Tables Follow –
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the three months ended | At or for the 9 months ended | |||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
(Dollars in 1000’s, besides per share knowledge) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Performance Ratios (1) | ||||||||||||||||||||||||||||||||||||
Return on common belongings | 1.11 | % | 1.22 | % | 0.91 | % | 0.89 | % | 1.26 | % | 1.08 | % | 1.04 | % | ||||||||||||||||||||||
Return on common fairness | 13.91 | 15.00 | 10.83 | 10.77 | 15.42 | 13.24 | 13.24 | |||||||||||||||||||||||||||||
Yield on common interest-earning belongings (2) | 4.10 | 3.85 | 3.77 | 3.77 | 3.84 | 3.91 | 3.77 | |||||||||||||||||||||||||||||
Cost of common interest-bearing liabilities | 1.25 | 0.60 | 0.50 | 0.58 | 0.61 | 0.79 | 0.65 | |||||||||||||||||||||||||||||
Cost of funds | 1.08 | 0.52 | 0.43 | 0.50 | 0.53 | 0.68 | 0.57 | |||||||||||||||||||||||||||||
Net rate of interest unfold throughout interval (2) | 2.85 | 3.25 | 3.27 | 3.19 | 3.23 | 3.12 | 3.12 | |||||||||||||||||||||||||||||
Net curiosity margin (2) | 3.07 | 3.35 | 3.36 | 3.29 | 3.34 | 3.26 | 3.22 | |||||||||||||||||||||||||||||
Noninterest expense to common belongings | 1.69 | 1.73 | 1.93 | 1.92 | 1.80 | 1.78 | 1.77 | |||||||||||||||||||||||||||||
Efficiency ratio (3) | 55.68 | 52.27 | 58.87 | 58.66 | 52.28 | 55.57 | 54.72 | |||||||||||||||||||||||||||||
Average interest-earning belongings to common interest-bearing liabilities |
1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.21 | X | 1.22 | X | 1.19 | X | ||||||||||||||||||||||
Average Balances | ||||||||||||||||||||||||||||||||||||
Total loans, web | $ | 6,861,463 | $ | 6,640,331 | $ | 6,578,680 | $ | 6,558,285 | $ | 6,633,301 | $ | 6,694,528 | $ | 6,673,309 | ||||||||||||||||||||||
Total interest-earning belongings | 7,979,070 | 7,740,683 | 7,570,373 | 7,627,256 | 7,608,317 | 7,764,873 | 7,688,354 | |||||||||||||||||||||||||||||
Total belongings | 8,442,657 | 8,211,763 | 8,049,470 | 8,090,701 | 8,072,918 | 8,236,070 | 8,161,121 | |||||||||||||||||||||||||||||
Total on account of depositors | 5,157,715 | 5,298,855 | 5,336,983 | 5,397,802 | 5,406,423 | 5,263,861 | 5,422,158 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,553,087 | 6,337,374 | 6,220,510 | 6,276,221 | 6,310,859 | 6,371,542 | 6,439,928 | |||||||||||||||||||||||||||||
Stockholders’ fairness | 674,282 | 667,456 | 673,012 | 671,474 | 659,288 | 671,588 | 641,354 | |||||||||||||||||||||||||||||
Per Share Data | ||||||||||||||||||||||||||||||||||||
Book worth per widespread share (4) | $ | 22.47 | $ | 22.38 | $ | 22.26 | $ | 22.26 | $ | 21.78 | $ | 22.47 | $ | 27.78 | ||||||||||||||||||||||
Tangible ebook worth per widespread share (5) | $ | 21.81 | $ | 21.71 | $ | 21.61 | $ | 21.61 | $ | 21.13 | $ | 21.81 | $ | 21.13 | ||||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Stockholders’ fairness | $ | 670,719 | $ | 670,812 | $ | 675,813 | $ | 679,628 | $ | 668,096 | $ | 670,719 | $ | 668,096 | ||||||||||||||||||||||
Tangible stockholders’ fairness | 650,936 | 650,894 | 656,085 | 659,758 | 648,039 | 650,936 | 648,039 | |||||||||||||||||||||||||||||
Consolidated Regulatory Capital Ratios | ||||||||||||||||||||||||||||||||||||
Tier 1 capital | $ | 749,526 | $ | 739,776 | $ | 731,536 | $ | 726,174 | $ | 711,276 | $ | 749,526 | $ | 711,276 | ||||||||||||||||||||||
Common fairness Tier 1 capital | 701,532 | 686,258 | 675,434 | 671,494 | 661,340 | 701,532 | 661,340 | |||||||||||||||||||||||||||||
Total risk-based capital | 979,021 | 903,047 | 892,861 | 885,469 | 832,255 | 979,021 | 832,255 | |||||||||||||||||||||||||||||
Risk Weighted Assets | 6,689,284 | 6,522,710 | 6,232,020 | 6,182,095 | 6,194,207 | 6,689,284 | 6,194,207 | |||||||||||||||||||||||||||||
Tier 1 leverage capital (nicely capitalized = 5%) |
8.74 | % | 8.91 | % | 9.05 | % | 8.98 | % | 8.83 | % | 8.74 | % | 8.83 | % | ||||||||||||||||||||||
Common fairness Tier 1 risk-based capital (nicely capitalized = 6.5%) | 10.49 | 10.52 | 10.84 | 10.86 | 10.68 | 10.49 | 10.68 | |||||||||||||||||||||||||||||
Tier 1 risk-based capital (nicely capitalized = 8.0%) |
11.20 | 11.34 | 11.74 | 11.75 | 11.48 | 11.20 | 11.48 | |||||||||||||||||||||||||||||
Total risk-based capital (nicely capitalized = 10.0%) |
14.64 | 13.84 | 14.33 | 14.32 | 13.44 | 14.64 | 13.44 | |||||||||||||||||||||||||||||
Capital Ratios | ||||||||||||||||||||||||||||||||||||
Average fairness to common belongings | 7.99 | % | 8.13 | % | 8.36 | % | 8.30 | % | 8.17 | % | 8.15 | % | 7.86 | % | ||||||||||||||||||||||
Equity to complete belongings | 7.84 | 8.04 | 8.27 | 8.45 | 8.27 | 7.84 | 8.27 | |||||||||||||||||||||||||||||
Tangible widespread fairness to tangible belongings (6) | 7.62 | 7.82 | 8.05 | 8.22 | 8.04 | 7.62 | 8.04 | |||||||||||||||||||||||||||||
Asset Quality | ||||||||||||||||||||||||||||||||||||
Nonaccrual loans (7) | $ | 27,003 | $ | 27,848 | $ | 14,066 | $ | 14,933 | $ | 18,292 | $ | 27,003 | $ | 18,292 | ||||||||||||||||||||||
Nonperforming loans | 29,003 | 27,948 | 14,066 | 14,933 | 20,217 | 29,003 | 20,217 | |||||||||||||||||||||||||||||
Nonperforming belongings | 49,984 | 48,929 | 14,066 | 14,933 | 20,217 | 49,984 | 20,217 | |||||||||||||||||||||||||||||
Net charge-offs (recoveries) | 290 | (501 | ) | 935 | (29 | ) | (619 | ) | 724 | 3,148 | ||||||||||||||||||||||||||
Asset Quality Ratios | ||||||||||||||||||||||||||||||||||||
Nonperforming loans to gross loans | 0.42 | % | 0.41 | % | 0.21 | % | 0.23 | % | 0.31 | % | 0.42 | % | 0.31 | % | ||||||||||||||||||||||
Nonperforming belongings to complete belongings | 0.58 | 0.59 | 0.17 | 0.19 | 0.25 | 0.58 | 0.25 | |||||||||||||||||||||||||||||
Allowance for credit score losses to gross loans | 0.59 | 0.58 | 0.57 | 0.56 | 0.55 | 0.59 | 0.55 | |||||||||||||||||||||||||||||
Allowance for credit score losses to nonperforming belongings |
82.56 | 80.57 | 266.12 | 248.66 | 179.86 | 82.56 | 179.86 | |||||||||||||||||||||||||||||
Allowance for credit score losses to nonperforming loans |
142.29 | 141.06 | 266.12 | 248.66 | 179.86 | 142.29 | 179.86 | |||||||||||||||||||||||||||||
Net charge-offs (recoveries) to common loans | 0.02 | (0.03 | ) | 0.06 | — | (0.04 | ) | 0.01 | 0.06 | |||||||||||||||||||||||||||
Full-service buyer amenities | 25 | 25 | 24 | 24 | 24 | 25 | 24 |
____________
(1) Ratios are offered on an annualized foundation, the place acceptable.
(2) Yields are calculated on the tax equal foundation utilizing the statutory federal revenue tax charge of 21% for the intervals offered.
(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing noninterest expense (excluding merger expense, OREO expense, prepayment penalty on borrowings, the web achieve/loss from the sale of OREO and web amortization of buy accounting changes) by the full of web curiosity revenue (excluding web beneficial properties and losses from truthful worth changes on qualifying hedges and web amortization of buy accounting changes) and noninterest revenue (excluding life insurance proceeds, web beneficial properties and losses from the sale or disposition of securities, belongings and truthful worth changes).
(4) Calculated by dividing stockholders’ fairness by shares excellent.
(5) Calculated by dividing tangible stockholders’ widespread fairness, a non-GAAP measure, by shares excellent. Tangible stockholders’ widespread fairness is stockholders’ fairness much less intangible belongings (goodwill, web of deferred taxes). 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.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the three months ended | For the 9 months ended | |||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||
(In 1000’s, besides per share knowledge) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||||||||
Interest and charges on loans | $ | 75,546 | $ | 69,192 | $ | 67,516 | $ | 68,113 | $ | 69,198 | $ | 212,254 | $ | 206,218 | ||||||||||||
Interest and dividends on securities: | ||||||||||||||||||||||||||
Interest | 5,676 | 4,929 | 3,745 | 3,536 | 3,706 | 14,350 | 10,463 | |||||||||||||||||||
Dividends | 17 | 11 | 8 | 7 | 7 | 36 | 22 | |||||||||||||||||||
Other curiosity revenue | 506 | 159 | 51 | 74 | 42 | 716 | 129 | |||||||||||||||||||
Total curiosity and dividend revenue | 81,745 | 74,291 | 71,320 | 71,730 | 72,953 | 227,356 | 216,832 | |||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Deposits | 11,965 | 4,686 | 3,408 | 3,975 | 4,705 | 20,059 | 16,349 | |||||||||||||||||||
Other curiosity expense | 8,574 | 4,875 | 4,433 | 5,081 | 4,884 | 17,882 | 15,188 | |||||||||||||||||||
Total curiosity expense | 20,539 | 9,561 | 7,841 | 9,056 | 9,589 | 37,941 | 31,537 | |||||||||||||||||||
Net Interest Income | 61,206 | 64,730 | 63,479 | 62,674 | 63,364 | 189,415 | 185,295 | |||||||||||||||||||
Provision (profit) for credit score losses | 2,145 | 1,590 | 1,358 | 761 | (6,927 | ) | 5,093 | (5,705 | ) | |||||||||||||||||
Net Interest Income After Provision (Benefit) for Credit Losses |
59,061 | 63,140 | 62,121 | 61,913 | 70,291 | 184,322 | 191,000 | |||||||||||||||||||
Noninterest Income (Loss) | ||||||||||||||||||||||||||
Banking companies price revenue | 1,351 | 1,166 | 1,374 | 1,142 | 865 | 3,891 | 4,823 | |||||||||||||||||||
Net achieve (loss) on sale of securities | — | — | — | — | (10 | ) | — | 113 | ||||||||||||||||||
Net achieve on sale of loans | — | 73 | — | 46 | 131 | 73 | 289 | |||||||||||||||||||
Net achieve on disposition of belongings | — | — | — | — | — | — | 621 | |||||||||||||||||||
Net achieve (loss) from truthful worth changes | 5,626 | 2,533 | (1,809 | ) | (5,140 | ) | (2,289 | ) | 6,350 | (7,855 | ) | |||||||||||||||
Federal Home Loan Bank of New York inventory dividends |
538 | 407 | 397 | 417 | 491 | 1,342 | 1,680 | |||||||||||||||||||
Life insurance proceeds | — | 1,536 | — | — | — | 1,536 | — | |||||||||||||||||||
Bank owned life insurance | 1,132 | 1,115 | 1,114 | 1,023 | 1,015 | 3,361 | 3,021 | |||||||||||||||||||
Other revenue | 348 | 523 | 237 | 2,232 | 663 | 1,108 | 1,275 | |||||||||||||||||||
Total noninterest revenue (loss) | 8,995 | 7,353 | 1,313 | (280 | ) | 866 | 17,661 | 3,967 | ||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Salaries and worker advantages | 21,438 | 21,109 | 23,649 | 25,223 | 20,544 | 66,196 | 63,087 | |||||||||||||||||||
Occupancy and tools | 3,541 | 3,760 | 3,604 | 3,579 | 3,534 | 10,905 | 10,423 | |||||||||||||||||||
Professional companies | 2,570 | 2,285 | 2,222 | 1,152 | 1,899 | 7,077 | 6,287 | |||||||||||||||||||
FDIC deposit insurance | 738 | 615 | 420 | 391 | 618 | 1,773 | 2,560 | |||||||||||||||||||
Data processing | 1,367 | 1,383 | 1,424 | 1,757 | 1,759 | 4,174 | 5,287 | |||||||||||||||||||
Depreciation and amortization | 1,488 | 1,447 | 1,460 | 1,521 | 1,627 | 4,395 | 4,904 | |||||||||||||||||||
Other actual property owned/foreclosures expense | 143 | 32 | 84 | 129 | 182 | 259 | 194 | |||||||||||||||||||
Other working bills | 4,349 | 4,891 | 5,931 | 5,055 | 6,182 | 15,171 | 15,773 | |||||||||||||||||||
Total noninterest expense | 35,634 | 35,522 | 38,794 | 38,807 | 36,345 | 109,950 | 108,515 | |||||||||||||||||||
Income Before Provision for Income Taxes | 32,422 | 34,971 | 24,640 | 22,826 | 34,812 | 92,033 | 86,452 | |||||||||||||||||||
Provision for Income Taxes | 8,980 | 9,936 | 6,421 | 4,743 | 9,399 | 25,337 | 22,742 | |||||||||||||||||||
Net Income | $ | 23,442 | $ | 25,035 | $ | 18,219 | $ | 18,083 | $ | 25,413 | $ | 66,696 | $ | 63,710 | ||||||||||||
Basic earnings per widespread share | $ | 0.76 | $ | 0.81 | $ | 0.58 | $ | 0.58 | $ | 0.81 | $ | 2.15 | $ | 2.02 | ||||||||||||
Diluted earnings per widespread share | $ | 0.76 | $ | 0.81 | $ | 0.58 | $ | 0.58 | $ | 0.81 | $ | 2.15 | $ | 2.02 | ||||||||||||
Dividends per widespread share | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.21 | $ | 0.21 | $ | 0.66 | $ | 0.63 | ||||||||||||
Basic common shares | 30,695 | 30,937 | 31,254 | 31,353 | 31,567 | 30,960 | 31,616 | |||||||||||||||||||
Diluted common shares | 30,695 | 30,937 | 31,254 | 31,353 | 31,567 | 30,960 | 31,616 |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 164,693 | $ | 137,026 | $ | 186,407 | $ | 81,723 | $ | 178,598 | ||||||||||
Securities held-to-maturity: | ||||||||||||||||||||
Mortgage-backed securities | 7,880 | 7,885 | 7,890 | 7,894 | 7,899 | |||||||||||||||
Other securities | 66,032 | 66,230 | 66,327 | 49,974 | 49,989 | |||||||||||||||
Securities out there on the market: | ||||||||||||||||||||
Mortgage-backed securities | 468,366 | 510,934 | 553,828 | 572,184 | 584,145 | |||||||||||||||
Other securities | 351,495 | 346,720 | 286,041 | 205,052 | 212,654 | |||||||||||||||
Loans | 6,956,674 | 6,760,393 | 6,607,264 | 6,638,105 | 6,630,354 | |||||||||||||||
Allowance for credit score losses | (41,268 | ) | (39,424 | ) | (37,433 | ) | (37,135 | ) | (36,363 | ) | ||||||||||
Net loans | 6,915,406 | 6,720,969 | 6,569,831 | 6,600,970 | 6,593,991 | |||||||||||||||
Interest and dividends receivable | 42,571 | 38,811 | 37,308 | 38,698 | 40,912 | |||||||||||||||
Bank premises and tools, web | 22,376 | 22,285 | 22,752 | 23,338 | 24,018 | |||||||||||||||
Federal Home Loan Bank of New York inventory | 62,489 | 50,017 | 33,891 | 35,937 | 36,158 | |||||||||||||||
Bank owned life insurance | 212,353 | 211,220 | 211,867 | 210,754 | 184,730 | |||||||||||||||
Goodwill | 17,636 | 17,636 | 17,636 | 17,636 | 17,636 | |||||||||||||||
Core deposit intangibles | 2,147 | 2,282 | 2,420 | 2,562 | 2,708 | |||||||||||||||
Right of use asset | 44,885 | 46,687 | 48,475 | 50,200 | 50,155 | |||||||||||||||
Other belongings | 179,090 | 160,885 | 125,160 | 148,989 | 93,741 | |||||||||||||||
Total belongings | $ | 8,557,419 | $ | 8,339,587 | $ | 8,169,833 | $ | 8,045,911 | $ | 8,077,334 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits | $ | 6,054,761 | $ | 6,350,000 | $ | 6,373,400 | $ | 6,333,532 | $ | 6,421,391 | ||||||||||
Mortgagors’ escrow deposits | 70,544 | 57,577 | 79,495 | 51,913 | 67,207 | |||||||||||||||
Borrowed funds | 1,572,830 | 1,089,621 | 877,122 | 815,544 | 752,925 | |||||||||||||||
Operating lease legal responsibility | 48,330 | 50,346 | 52,292 | 54,155 | 54,239 | |||||||||||||||
Other liabilities | 140,235 | 121,231 | 111,711 | 111,139 | 113,476 | |||||||||||||||
Total liabilities | 7,886,700 | 7,668,775 | 7,494,020 | 7,366,283 | 7,409,238 | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Preferred inventory (5,000,000 shares approved; none issued) | — | — | — | — | — | |||||||||||||||
Common inventory ($0.01 par worth; 100,000,000 shares approved) | 341 | 341 | 341 | 341 | 341 | |||||||||||||||
Additional paid-in capital | 263,755 | 262,860 | 261,837 | 263,375 | 262,009 | |||||||||||||||
Treasury inventory | (90,977 | ) | (88,342 | ) | (79,834 | ) | (75,293 | ) | (71,738 | ) | ||||||||||
Retained earnings | 543,894 | 527,217 | 508,973 | 497,889 | 486,418 | |||||||||||||||
Accumulated different complete loss, web of taxes | (46,294 | ) | (31,264 | ) | (15,504 | ) | (6,684 | ) | (8,934 | ) | ||||||||||
Total stockholders’ fairness | 670,719 | 670,812 | 675,813 | 679,628 | 668,096 | |||||||||||||||
Total liabilities and stockholders’ fairness | $ | 8,557,419 | $ | 8,339,587 | $ | 8,169,833 | $ | 8,045,911 | $ | 8,077,334 | ||||||||||
(In 1000’s) | ||||||||||||||||||||
Issued shares | 34,088 | 34,088 | 34,088 | 34,088 | 34,088 | |||||||||||||||
Outstanding shares | 29,851 | 29,980 | 30,367 | 30,526 | 30,676 | |||||||||||||||
Treasury shares | 4,237 | 4,108 | 3,721 | 3,561 | 3,412 |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)
For the three months ended | For the 9 months ended | ||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||
(In 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||
Interest-earning Assets: | |||||||||||||||||||||||
Mortgage loans, web | $ | 5,340,694 | $ | 5,178,029 | $ | 5,152,070 | $ | 5,140,233 | $ | 5,158,213 | $ | 5,224,289 | $ | 5,148,204 | |||||||||
Other loans, web | 1,520,769 | 1,462,302 | 1,426,610 | 1,418,052 | 1,475,088 | 1,470,239 | 1,525,105 | ||||||||||||||||
Total loans, web | 6,861,463 | 6,640,331 | 6,578,680 | 6,558,285 | 6,633,301 | 6,694,528 | 6,673,309 | ||||||||||||||||
Taxable securities: | |||||||||||||||||||||||
Mortgage-backed securities | 568,854 | 594,923 | 580,670 | 595,538 | 590,732 | 581,439 | 534,836 | ||||||||||||||||
Other securities | 362,629 | 333,158 | 226,744 | 207,482 | 217,763 | 308,008 | 249,899 | ||||||||||||||||
Total taxable securities | 931,483 | 928,081 | 807,414 | 803,020 | 808,495 | 889,447 | 784,735 | ||||||||||||||||
Tax-exempt securities: | |||||||||||||||||||||||
Other securities | 67,211 | 67,315 | 57,611 | 50,834 | 50,832 | 64,081 | 50,830 | ||||||||||||||||
Total tax-exempt securities | 67,211 | 67,315 | 57,611 | 50,834 | 50,832 | 64,081 | 50,830 | ||||||||||||||||
Interest-earning deposits and federal funds bought | 118,913 | 104,956 | 126,668 | 215,117 | 115,689 | 116,817 | 179,480 | ||||||||||||||||
Total interest-earning belongings | 7,979,070 | 7,740,683 | 7,570,373 | 7,627,256 | 7,608,317 | 7,764,873 | 7,688,354 | ||||||||||||||||
Other belongings | 463,587 | 471,080 | 479,097 | 463,445 | 464,601 | 471,197 | 472,767 | ||||||||||||||||
Total belongings | $ | 8,442,657 | $ | 8,211,763 | $ | 8,049,470 | $ | 8,090,701 | $ | 8,072,918 | $ | 8,236,070 | $ | 8,161,121 | |||||||||
Interest-bearing Liabilities: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Savings accounts | $ | 154,545 | $ | 156,785 | $ | 156,592 | $ | 154,471 | $ | 153,120 | $ | 155,966 | $ | 158,708 | |||||||||
NOW accounts | 1,808,608 | 2,089,851 | 2,036,914 | 2,115,619 | 2,107,866 | 1,977,621 | 2,182,660 | ||||||||||||||||
Money market accounts | 2,136,829 | 2,231,743 | 2,253,630 | 2,177,928 | 2,107,473 | 2,206,973 | 2,019,497 | ||||||||||||||||
Certificate of deposit accounts | 1,057,733 | 820,476 | 889,847 | 949,784 | 1,037,964 | 923,301 | 1,061,293 | ||||||||||||||||
Total on account of depositors | 5,157,715 | 5,298,855 | 5,336,983 | 5,397,802 | 5,406,423 | 5,263,861 | 5,422,158 | ||||||||||||||||
Mortgagors’ escrow accounts | 68,602 | 97,496 | 71,509 | 84,617 | 68,562 | 79,192 | 75,171 | ||||||||||||||||
Total interest-bearing deposits | 5,226,317 | 5,396,351 | 5,408,492 | 5,482,419 | 5,474,985 | 5,343,053 | 5,497,329 | ||||||||||||||||
Borrowings | 1,326,770 | 941,023 | 812,018 | 793,802 | 835,874 | 1,028,489 | 942,599 | ||||||||||||||||
Total interest-bearing liabilities | 6,553,087 | 6,337,374 | 6,220,510 | 6,276,221 | 6,310,859 | 6,371,542 | 6,439,928 | ||||||||||||||||
Noninterest-bearing demand deposits | 1,050,296 | 1,044,553 | 1,001,571 | 976,803 | 933,443 | 1,032,319 | 904,522 | ||||||||||||||||
Other liabilities | 164,992 | 162,380 | 154,377 | 166,203 | 169,328 | 160,621 | 175,317 | ||||||||||||||||
Total liabilities | 7,768,375 | 7,544,307 | 7,376,458 | 7,419,227 | 7,413,630 | 7,564,482 | 7,519,767 | ||||||||||||||||
Equity | 674,282 | 667,456 | 673,012 | 671,474 | 659,288 | 671,588 | 641,354 | ||||||||||||||||
Total liabilities and fairness | $ | 8,442,657 | $ | 8,211,763 | $ | 8,049,470 | $ | 8,090,701 | $ | 8,072,918 | $ | 8,236,070 | $ | 8,161,121 | |||||||||
Net interest-earning belongings | $ | 1,425,983 | $ | 1,403,309 | $ | 1,349,863 | $ | 1,351,035 | $ | 1,297,458 | $ | 1,393,331 | $ | 1,248,426 |
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST INCOME AND NET INTEREST MARGIN
(Unaudited)
For the three months ended | For the 9 months ended | |||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||||||||||
Mortgage loans, web | $ | 58,374 | $ | 54,775 | $ | 53,970 | $ | 54,260 | $ | 55,114 | $ | 167,119 | $ | 163,320 | ||||||||||||||||||
Other loans, web | 17,172 | 14,417 | 13,546 | 13,853 | 14,084 | 45,135 | 42,898 | |||||||||||||||||||||||||
Total loans, web | 75,546 | 69,192 | 67,516 | 68,113 | 69,198 | 212,254 | 206,218 | |||||||||||||||||||||||||
Taxable securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 2,466 | 2,356 | 2,167 | 2,125 | 2,279 | 6,989 | 6,210 | |||||||||||||||||||||||||
Other securities | 2,839 | 2,090 | 1,119 | 993 | 1,008 | 6,048 | 3,008 | |||||||||||||||||||||||||
Total taxable securities | 5,305 | 4,446 | 3,286 | 3,118 | 3,287 | 13,037 | 9,218 | |||||||||||||||||||||||||
Tax-exempt securities: | ||||||||||||||||||||||||||||||||
Other securities | 492 | 625 | 591 | 538 | 539 | 1,708 | 1,604 | |||||||||||||||||||||||||
Total tax-exempt securities | 492 | 625 | 591 | 538 | 539 | 1,708 | 1,604 | |||||||||||||||||||||||||
Interest-earning deposits and federal funds bought | 506 | 159 | 51 | 74 | 42 | 716 | 129 | |||||||||||||||||||||||||
Total interest-earning belongings | 81,849 | 74,422 | 71,444 | 71,843 | 73,066 | 227,715 | 217,169 | |||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Savings accounts | $ | 53 | $ | 50 | $ | 49 | $ | 53 | $ | 61 | $ | 152 | $ | 202 | ||||||||||||||||||
NOW accounts | 3,640 | 1,405 | 793 | 1,021 | 1,227 | 5,838 | 4,432 | |||||||||||||||||||||||||
Money market accounts | 5,280 | 1,952 | 1,275 | 1,428 | 1,683 | 8,507 | 5,843 | |||||||||||||||||||||||||
Certificate of deposit accounts | 2,948 | 1,273 | 1,289 | 1,471 | 1,734 | 5,510 | 5,869 | |||||||||||||||||||||||||
Total on account of depositors | 11,921 | 4,680 | 3,406 | 3,973 | 4,705 | 20,007 | 16,346 | |||||||||||||||||||||||||
Mortgagors’ escrow accounts | 44 | 6 | 2 | 2 | — | 52 | 3 | |||||||||||||||||||||||||
Total interest-bearing deposits | 11,965 | 4,686 | 3,408 | 3,975 | 4,705 | 20,059 | 16,349 | |||||||||||||||||||||||||
Borrowings | 8,574 | 4,875 | 4,433 | 5,081 | 4,884 | 17,882 | 15,188 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 20,539 | 9,561 | 7,841 | 9,056 | 9,589 | 37,941 | 31,537 | |||||||||||||||||||||||||
Net curiosity income- tax equal | $ | 61,310 | $ | 64,861 | $ | 63,603 | $ | 62,787 | $ | 63,477 | $ | 189,774 | $ | 185,632 | ||||||||||||||||||
Included in web curiosity revenue above: | ||||||||||||||||||||||||||||||||
Prepayment penalties obtained on loans and securities and web of reversals and recovered curiosity from nonaccrual loans | $ | 1,368 | $ | 2,281 | $ | 1,716 | $ | 1,497 | $ | 2,136 | $ | 5,365 | $ | 5,130 | ||||||||||||||||||
Net beneficial properties/(losses) from truthful worth changes on qualifying hedges included in mortgage curiosity revenue | 28 | (60 | ) | (129 | ) | 1,122 | 194 | (161 | ) | 957 | ||||||||||||||||||||||
Purchase accounting changes | 775 | 367 | 1,058 | 462 | 1,100 | 2,200 | 2,587 | |||||||||||||||||||||||||
Interest-earning Assets Yields: | ||||||||||||||||||||||||||||||||
Mortgage loans, web | 4.37 | % | 4.23 | % | 4.19 | % | 4.22 | % | 4.27 | % | 4.27 | % | 4.23 | % | ||||||||||||||||||
Other loans, web | 4.52 | 3.94 | 3.80 | 3.91 | 3.82 | 4.09 | 3.75 | |||||||||||||||||||||||||
Total loans, web | 4.40 | 4.17 | 4.11 | 4.15 | 4.17 | 4.23 | 4.12 | |||||||||||||||||||||||||
Taxable securities: | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1.73 | 1.58 | 1.49 | 1.43 | 1.54 | 1.60 | 1.55 | |||||||||||||||||||||||||
Other securities | 3.13 | 2.51 | 1.97 | 1.91 | 1.85 | 2.62 | 1.60 | |||||||||||||||||||||||||
Total taxable securities | 2.28 | 1.92 | 1.63 | 1.55 | 1.63 | 1.95 | 1.57 | |||||||||||||||||||||||||
Tax-exempt securities: (1) | ||||||||||||||||||||||||||||||||
Other securities | 2.93 | 3.71 | 4.10 | 4.23 | 4.24 | 3.55 | 4.21 | |||||||||||||||||||||||||
Total tax-exempt securities | 2.93 | 3.71 | 4.10 | 4.23 | 4.24 | 3.55 | 4.21 | |||||||||||||||||||||||||
Interest-earning deposits and federal funds bought | 1.70 | 0.61 | 0.16 | 0.14 | 0.15 | 0.82 | 0.10 | |||||||||||||||||||||||||
Total interest-earning belongings | 4.10 | % | 3.85 | % | 3.77 | % | 3.77 | % | 3.84 | % | 3.91 | % | 3.77 | % | ||||||||||||||||||
Interest-bearing Liabilities Yields: | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Savings accounts | 0.14 | % | 0.13 | % | 0.13 | % | 0.14 | % | 0.16 | % | 0.13 | % | 0.17 | % | ||||||||||||||||||
NOW accounts | 0.81 | 0.27 | 0.16 | 0.19 | 0.23 | 0.39 | 0.27 | |||||||||||||||||||||||||
Money market accounts | 0.99 | 0.35 | 0.23 | 0.26 | 0.32 | 0.51 | 0.39 | |||||||||||||||||||||||||
Certificate of deposit accounts | 1.11 | 0.62 | 0.58 | 0.62 | 0.67 | 0.80 | 0.74 | |||||||||||||||||||||||||
Total on account of depositors | 0.92 | 0.35 | 0.26 | 0.29 | 0.35 | 0.51 | 0.40 | |||||||||||||||||||||||||
Mortgagors’ escrow accounts | 0.26 | 0.02 | 0.01 | 0.01 | — | 0.09 | 0.01 | |||||||||||||||||||||||||
Total interest-bearing deposits | 0.92 | 0.35 | 0.25 | 0.29 | 0.34 | 0.50 | 0.40 | |||||||||||||||||||||||||
Borrowings | 2.58 | 2.07 | 2.18 | 2.56 | 2.34 | 2.32 | 2.15 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 1.25 | % | 0.60 | % | 0.50 | % | 0.58 | % | 0.61 | % | 0.79 | % | 0.65 | % | ||||||||||||||||||
Net rate of interest unfold (tax equal) |
2.85 | % | 3.25 | % | 3.27 | % | 3.19 | % | 3.23 | % | 3.12 | % | 3.12 | % | ||||||||||||||||||
Net curiosity margin (tax equal) | 3.07 | % | 3.35 | % | 3.36 | % | 3.29 | % | 3.34 | % | 3.26 | % | 3.22 | % | ||||||||||||||||||
Ratio of interest-earning belongings to interest-bearing liabilities | 1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.21 | X | 1.22 | X | 1.19 | X |
____________
(1) Yields are calculated on the tax equal foundation utilizing the statutory federal revenue tax charge of 21% for the intervals offered.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT and LOAN COMPOSITION
(Unaudited)
Deposit Composition
September 2022 vs. | September 2022 vs. | ||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 2022 | September 2021 | |||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | % Change | % Change | ||||||||||||||||
Noninterest bearing | $ | 992,378 | $ | 1,081,208 | $ | 1,041,027 | $ | 967,621 | $ | 941,259 | (8.2 | ) | % | 5.4 | % | ||||||||
Interest bearing: | |||||||||||||||||||||||
Certificate of deposit accounts | 1,036,107 | 906,943 | 886,317 | 946,575 | 1,040,098 | 14.2 | (0.4 | ) | |||||||||||||||
Savings accounts | 150,552 | 154,670 | 158,542 | 156,554 | 152,306 | (2.7 | ) | (1.2 | ) | ||||||||||||||
Money market accounts | 2,113,256 | 2,229,993 | 2,362,390 | 2,342,003 | 2,152,085 | (5.2 | ) | (1.8 | ) | ||||||||||||||
NOW accounts | 1,762,468 | 1,977,186 | 1,925,124 | 1,920,779 | 2,135,643 | (10.9 | ) | (17.5 | ) | ||||||||||||||
Total interest-bearing deposits | 5,062,383 | 5,268,792 | 5,332,373 | 5,365,911 | 5,480,132 | (3.9 | ) | (7.6 | ) | ||||||||||||||
Total deposits | $ | 6,054,761 | $ | 6,350,000 | $ | 6,373,400 | $ | 6,333,532 | $ | 6,421,391 | (4.6 | ) | % | (5.7 | ) | % |
Loan Composition
September 2022 vs. | September 2022 vs. | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | June 2022 | September 2021 | ||||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | % Change | % Change | |||||||||||||||||||||
Multifamily residential | $ | 2,608,192 | $ | 2,531,858 | $ | 2,500,570 | $ | 2,517,026 | $ | 2,498,980 | 3.0 | % | 4.4 | % | ||||||||||||||
Commercial actual property | 1,914,326 | 1,864,507 | 1,764,927 | 1,775,629 | 1,745,855 | 2.7 | 9.6 | |||||||||||||||||||||
One-to-four household ― mixed-use property | 560,885 | 561,100 | 563,679 | 571,795 | 579,100 | — | (3.1 | ) | ||||||||||||||||||||
One-to-four household ― residential | 233,469 | 242,729 | 248,226 | 268,255 | 280,343 | (3.8 | ) | (16.7 | ) | |||||||||||||||||||
Co-operative flats | 7,015 | 8,130 | 8,248 | 8,316 | 7,804 | (13.7 | ) | (10.1 | ) | |||||||||||||||||||
Construction | 63,651 | 72,148 | 68,488 | 59,761 | 71,464 | (11.8 | ) | (10.9 | ) | |||||||||||||||||||
Mortgage Loans | 5,387,538 | 5,280,472 | 5,154,138 | 5,200,782 | 5,183,546 | 2.0 | 3.9 | |||||||||||||||||||||
Small Business Administration (1) | 27,712 | 40,572 | 59,331 | 93,811 | 148,855 | (31.7 | ) | (81.4 | ) | |||||||||||||||||||
Commercial business and different | 1,532,497 | 1,431,417 | 1,387,155 | 1,339,273 | 1,294,688 | 7.1 | 18.4 | |||||||||||||||||||||
Nonmortgage loans | 1,560,209 | 1,471,989 | 1,446,486 | 1,433,084 | 1,443,543 | 6.0 | 8.1 | |||||||||||||||||||||
Net unamortized premiums and unearned mortgage charges (2) | 8,927 | 7,932 | 6,640 | 4,239 | 3,265 | 12.5 | 173.4 | |||||||||||||||||||||
Allowance for credit score losses | (41,268 | ) | (39,424 | ) | (37,433 | ) | (37,135 | ) | (36,363 | ) | 4.7 | 13.5 | ||||||||||||||||
Net loans | $ | 6,915,406 | $ | 6,720,969 | $ | 6,569,831 | $ | 6,600,970 | $ | 6,593,991 | 2.9 | % | 4.9 | % | ||||||||||||||
____________
(1) Includes $9.6 million, $22.2 million, $43.2 million, $77.4 million, and $130.8 million of PPP loans at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.
(2) Includes $5.8 million, $6.6 million, $6.9 million, $8.0 million, and $8.6 million of buy accounting unamortized low cost ensuing from the acquisition of Empire Bancorp at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOAN CLOSINGS and RATES
(Unaudited)
Loan Closings
For the three months ended | For the 9 months ended | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||
(In 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||
Multifamily residential | $ | 173,980 | $ | 136,902 | $ | 98,180 | $ | 79,648 | $ | 41,850 | $ | 409,062 | $ | 167,316 | ||||||||
Commercial actual property | 77,777 | 164,826 | 45,102 | 64,916 | 48,447 | 287,705 | 103,566 | |||||||||||||||
One-to-four household – mixed-use property | 12,383 | 12,228 | 8,498 | 12,440 | 12,823 | 33,109 | 28,670 | |||||||||||||||
One-to-four household – residential | 4,102 | 4,211 | 9,237 | 5,162 | 2,761 | 17,550 | 65,386 | |||||||||||||||
Co-operative flats | — | — | 24 | 413 | — | 24 | — | |||||||||||||||
Construction | 7,170 | 8,319 | 8,802 | 17,033 | 8,687 | 24,291 | 21,091 | |||||||||||||||
Mortgage Loans | 275,412 | 326,486 | 169,843 | 179,612 | 114,568 | 771,741 | 386,029 | |||||||||||||||
Small Business Administration (1) | 46 | 2,750 | — | 270 | 415 | 2,796 | 143,093 | |||||||||||||||
Commercial business and different | 188,202 | 174,551 | 159,476 | 182,858 | 128,946 | 522,229 | 362,100 | |||||||||||||||
Nonmortgage Loans | 188,248 | 177,301 | 159,476 | 183,128 | 129,361 | 525,025 | 505,193 | |||||||||||||||
Total Closings | $ | 463,660 | $ | 503,787 | $ | 329,319 | $ | 362,740 | $ | 243,929 | $ | 1,296,766 | $ | 891,222 |
____________
(1) Includes $138.7 million of PPP closings for the 9 months ended September 30, 2021.
Weighted Average Rate on Loan Closings
For the three months ended | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Loan sort | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||
Mortgage loans | 4.37 | % | 3.76 | % | 3.61 | % | 3.77 | % | 3.80 | % | |||||
Nonmortgage loans | 4.93 | 4.21 | 3.27 | 3.24 | 3.49 | ||||||||||
Total loans | 4.60 | % | 3.92 | % | 3.44 | % | 3.51 | % | 3.64 | % | |||||
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)
Allowance for Credit Losses
For the three months ended | For the 9 months ended | ||||||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
Allowance for credit score losses | |||||||||||||||||||||||||||||||||||||
Beginning balances | $ | 39,424 | $ | 37,433 | $ | 37,135 | $ | 36,363 | $ | 42,670 | 37,135 | 45,153 | |||||||||||||||||||||||||
Net mortgage charge-off (recoveries): | |||||||||||||||||||||||||||||||||||||
Multifamily residential | — | (1 | ) | — | — | — | $ | (1 | ) | $ | 33 | ||||||||||||||||||||||||||
Commercial actual property | — | — | — | — | — | — | 64 | ||||||||||||||||||||||||||||||
One-to-four household – mixed-use property | — | — | — | 1 | (123 | ) | — | (101 | ) | ||||||||||||||||||||||||||||
One-to-four household – residential | 2 | (2 | ) | (2 | ) | (3 | ) | (147 | ) | (2 | ) | (154 | ) | ||||||||||||||||||||||||
Small Business Administration | (12 | ) | 13 | 1,015 | (7 | ) | (8 | ) | 1,016 | (27 | ) | ||||||||||||||||||||||||||
Taxi medallion | — | (435 | ) | (12 | ) | — | (1,235 | ) | (447 | ) | 1,301 | ||||||||||||||||||||||||||
Commercial business and different | 300 | (76 | ) | (66 | ) | (20 | ) | 894 | 158 | 2,032 | |||||||||||||||||||||||||||
Total | 290 | (501 | ) | 935 | (29 | ) | (619 | ) | 724 | 3,148 | |||||||||||||||||||||||||||
Provision (profit) for mortgage losses | 2,134 | 1,490 | 1,233 | 743 | (6,926 | ) | 4,857 | (5,642 | ) | ||||||||||||||||||||||||||||
Ending steadiness | $ | 41,268 | $ | 39,424 | $ | 37,433 | $ | 37,135 | $ | 36,363 | $ | 41,268 | $ | 36,363 | |||||||||||||||||||||||
Gross charge-offs | $ | 324 | $ | 50 | $ | 1,036 | $ | 7 | $ | 1,019 | $ | 1,410 | $ | 5,127 | |||||||||||||||||||||||
Gross recoveries | 34 | 551 | 101 | 36 | 1,638 | 686 | 1,979 | ||||||||||||||||||||||||||||||
Allowance for credit score losses to gross loans | 0.59 | % | 0.58 | % | 0.57 | % | 0.56 | % | 0.55 | % | 0.59 | % | 0.55 | % | |||||||||||||||||||||||
Net mortgage charge-offs (recoveries) to common loans | 0.02 | (0.03 | ) | 0.06 | — | (0.04 | ) | 0.01 | 0.06 |
Nonperforming Assets
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||
Loans 90 Days Or More Past Due and Still Accruing: | ||||||||||||||||||||
Commercial actual property | $ | 2,000 | $ | — | $ | — | $ | — | $ | — | ||||||||||
Construction | — | — | — | — | 873 | |||||||||||||||
Commercial business and different | — | 100 | — | — | 1,052 | |||||||||||||||
Total | 2,000 | 100 | — | — | 1,925 | |||||||||||||||
Nonaccrual Loans: | ||||||||||||||||||||
Multifamily residential | 3,414 | 3,414 | 3,414 | 2,431 | 4,192 | |||||||||||||||
Commercial actual property | 1,851 | 242 | 5 | 613 | 613 | |||||||||||||||
One-to-four household – mixed-use property (1) | 790 | 790 | 790 | 1,309 | 2,204 | |||||||||||||||
One-to-four household – residential | 4,655 | 5,055 | 7,387 | 7,725 | 7,807 | |||||||||||||||
Construction | — | 856 | — | — | — | |||||||||||||||
Small Business Administration | 937 | 937 | 937 | 937 | 976 | |||||||||||||||
Commercial business and different(1) | 15,356 | 16,554 | 1,533 | 1,918 | 2,500 | |||||||||||||||
Total | 27,003 | 27,848 | 14,066 | 14,933 | 18,292 | |||||||||||||||
Total Nonperforming Loans (NPLs) | 29,003 | 27,948 | 14,066 | 14,933 | 20,217 | |||||||||||||||
Total Nonaccrual HTM Securities | 20,981 | 20,981 | — | — | — | |||||||||||||||
Total Nonperforming Assets | $ | 49,984 | $ | 48,929 | $ | 14,066 | $ | 14,933 | $ | 20,217 | ||||||||||
Nonperforming Assets to Total Assets | 0.58 | % | 0.59 | % | 0.17 | % | 0.19 | % | 0.25 | % | ||||||||||
Allowance for Credit Losses to NPLs | 142.3 | % | 141.1 | % | 266.1 | % | 248.7 | % | 179.9 | % |
____________
(1) Not included within the above evaluation are nonaccrual performing TDR one-to-four household – blended use property loans totaling $0.2 million in 3Q22 and $0.3 million every in 2Q22, 1Q22, 4Q21, and 3Q21; nonaccrual performing TDR business business loans totaling $2.9 million in 3Q22, $2.8 million in 2Q22 and 1Q22, lower than $0.1 million every in 4Q21 and 3Q21.
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 pushed by the impression of non-cash web beneficial properties and losses from truthful worth changes. These truthful worth changes relate primarily to borrowings carried at truthful worth beneath the truthful worth choice and swaps designated to guard in opposition to rising charges. As the swaps get nearer to maturity, the volatility in truthful worth changes will dissipate. In a rising rate of interest atmosphere or a steepening of the yield curve, the loss place would expertise an enchancment. In a declining rate of interest atmosphere, the motion within the curve exaggerates our mark-to-market loss place.
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 widespread share are every non-GAAP measures used on this launch. A reconciliation to essentially the most straight comparable GAAP monetary measures seems beneath in tabular type. The Company believes that these measures are helpful for each traders and administration to grasp the results of sure curiosity and noninterest gadgets and supply another view of the Company’s efficiency over time and compared to the Company’s rivals. These measures shouldn’t be seen as an alternative to web revenue. The Company believes that tangible ebook worth per widespread share is beneficial for each traders and administration as these are measures generally utilized by monetary establishments, regulators and traders to measure the capital adequacy of monetary establishments. The Company believes these measures facilitate comparability of the standard and composition of the Company’s capital over time and compared to its rivals. These measures shouldn’t be seen as an alternative to complete shareholders’ fairness.
These non-GAAP measures have inherent limitations, should not required to be uniformly utilized and should not audited. They shouldn’t be thought-about in isolation or as an alternative to evaluation of outcomes reported beneath GAAP. These non-GAAP measures might not be similar to equally titled measures reported by different firms.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(Unaudited)
For the three months ended | For the 9 months ended | ||||||||||||||||||||||||||||||||||||
(Dollars in 1000’s, | September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||
besides per share knowledge) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
GAAP revenue earlier than revenue taxes | $ | 32,422 | $ | 34,971 | $ | 24,640 | $ | 22,826 | $ | 34,812 | $ | 92,033 | $ | 86,452 | |||||||||||||||||||||||
Net (achieve) loss from truthful worth changes (Noninterest revenue (loss)) | (5,626 | ) | (2,533 | ) | 1,809 | 5,140 | 2,289 | (6,350 | ) | 7,855 | |||||||||||||||||||||||||||
Net (achieve) loss on sale of securities (Noninterest revenue (loss)) | — | — | — | — | 10 | — | (113 | ) | |||||||||||||||||||||||||||||
Life insurance proceeds (Noninterest revenue (loss)) |
— | (1,536 | ) | — | — | — | (1,536 | ) | — | ||||||||||||||||||||||||||||
Net achieve on disposition of belongings (Noninterest revenue (loss)) | — | — | — | — | — | — | (621 | ) | |||||||||||||||||||||||||||||
Net (achieve) loss from truthful worth changes on qualifying hedges (Interest and charges on loans) |
(28 | ) | 60 | 129 | (1,122 | ) | (194 | ) | 161 | (957 | ) | ||||||||||||||||||||||||||
Net amortization of buy accounting changes (Various) | (650 | ) | (237 | ) | (924 | ) | (324 | ) | (958 | ) | (1,811 | ) | (2,165 | ) | |||||||||||||||||||||||
Merger (profit) expense (Various) | — | — | — | (17 | ) | 2,096 | — | 2,579 | |||||||||||||||||||||||||||||
Core revenue earlier than taxes | 26,118 | 30,725 | 25,654 | 26,503 | 38,055 | 82,497 | 93,030 | ||||||||||||||||||||||||||||||
Provision for revenue taxes for core revenue | 7,165 | 9,207 | 6,685 | 5,535 | 10,226 | 23,057 | 25,234 | ||||||||||||||||||||||||||||||
Core web revenue | $ | 18,953 | $ | 21,518 | $ | 18,969 | $ | 20,968 | $ | 27,829 | $ | 59,440 | $ | 67,796 | |||||||||||||||||||||||
GAAP diluted earnings per widespread share | $ | 0.76 | $ | 0.81 | $ | 0.58 | $ | 0.58 | $ | 0.81 | $ | 2.15 | $ | 2.02 | |||||||||||||||||||||||
Net (achieve) loss from truthful worth changes, web of tax | (0.13 | ) | (0.06 | ) | 0.04 | 0.13 | 0.05 | (0.15 | ) | 0.18 | |||||||||||||||||||||||||||
Net loss on sale of securities, web of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Life insurance proceeds | — | (0.05 | ) | — | — | — | (0.05 | ) | — | ||||||||||||||||||||||||||||
Net achieve on disposition of belongings, web of tax | — | — | — | — | — | — | (0.01 | ) | |||||||||||||||||||||||||||||
Net (achieve) loss from truthful worth changes on qualifying hedges, web of tax | — | — | — | (0.03 | ) | — | — | (0.02 | ) | ||||||||||||||||||||||||||||
Net amortization of buy accounting changes, web of tax | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.05 | ) | |||||||||||||||||||||||
Merger (profit) expense, web of tax | — | — | — | — | 0.05 | — | 0.06 | ||||||||||||||||||||||||||||||
NYS tax change | — | — | — | — | — | — | (0.02 | ) | |||||||||||||||||||||||||||||
Core diluted earnings per widespread share(1) | $ | 0.62 | $ | 0.70 | $ | 0.61 | $ | 0.67 | $ | 0.88 | $ | 1.92 | $ | 2.14 | |||||||||||||||||||||||
Core web revenue, as calculated above | $ | 18,953 | $ | 21,518 | $ | 18,969 | $ | 20,968 | $ | 27,829 | $ | 59,440 | $ | 67,796 | |||||||||||||||||||||||
Average belongings | 8,442,657 | 8,211,763 | 8,049,470 | 8,090,701 | 8,072,918 | 8,236,070 | 8,161,121 | ||||||||||||||||||||||||||||||
Average fairness | 674,282 | 667,456 | 673,012 | 671,474 | 659,288 | 671,588 | 641,354 | ||||||||||||||||||||||||||||||
Core return on common belongings(2) | 0.90 | % | 1.05 | % | 0.94 | % | 1.04 | % | 1.38 | % | 0.96 | % | 1.11 | % | |||||||||||||||||||||||
Core return on common fairness(2) | 11.24 | % | 12.90 | % | 11.27 | % | 12.49 | % | 16.88 | % | 11.80 | % | 14.09 | % |
____________
(1) Core diluted earnings per widespread share might not foot on account of rounding.
(2) Ratios are calculated on an annualized foundation.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE and PRE-PROVISION
PRE-TAX NET REVENUE
(Unaudited)
For the three months ended | For the 9 months ended | ||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
GAAP Net curiosity revenue | $ | 61,206 | $ | 64,730 | $ | 63,479 | $ | 62,674 | $ | 63,364 | $ | 189,415 | $ | 185,295 | |||||||||||||||||
Net (achieve) loss from truthful worth changes on qualifying hedges | (28 | ) | 60 | 129 | (1,122 | ) | (194 | ) | 161 | (957 | ) | ||||||||||||||||||||
Net amortization of buy accounting changes | (775 | ) | (367 | ) | (1,058 | ) | (462 | ) | (1,100 | ) | (2,200 | ) | (2,587 | ) | |||||||||||||||||
Core Net curiosity revenue | $ | 60,403 | $ | 64,423 | $ | 62,550 | $ | 61,090 | $ | 62,070 | $ | 187,376 | $ | 181,751 | |||||||||||||||||
GAAP Noninterest revenue (loss) | $ | 8,995 | $ | 7,353 | $ | 1,313 | $ | (280 | ) | $ | 866 | $ | 17,661 | $ | 3,967 | ||||||||||||||||
Net (achieve) loss from truthful worth changes | (5,626 | ) | (2,533 | ) | 1,809 | 5,140 | 2,289 | (6,350 | ) | 7,855 | |||||||||||||||||||||
Net achieve (loss) on sale of securities | — | — | — | — | 10 | — | (113 | ) | |||||||||||||||||||||||
Life insurance proceeds | — | (1,536 | ) | — | — | — | (1,536 | ) | — | ||||||||||||||||||||||
Net achieve on sale of belongings | — | — | — | — | — | — | (621 | ) | |||||||||||||||||||||||
Core Noninterest revenue | $ | 3,369 | $ | 3,284 | $ | 3,122 | $ | 4,860 | $ | 3,165 | $ | 9,775 | $ | 11,088 | |||||||||||||||||
GAAP Noninterest expense | $ | 35,634 | $ | 35,522 | $ | 38,794 | $ | 38,807 | $ | 36,345 | $ | 109,950 | $ | 108,515 | |||||||||||||||||
Net amortization of buy accounting changes | (125 | ) | (130 | ) | (134 | ) | (138 | ) | (142 | ) | (389 | ) | (422 | ) | |||||||||||||||||
Merger expense (profit) | — | — | — | 17 | (2,096 | ) | — | (2,579 | ) | ||||||||||||||||||||||
Core Noninterest expense | $ | 35,509 | $ | 35,392 | $ | 38,660 | $ | 38,686 | $ | 34,107 | $ | 109,561 | $ | 105,514 | |||||||||||||||||
Net curiosity revenue | $ | 61,206 | $ | 64,730 | $ | 63,479 | $ | 62,674 | $ | 63,364 | $ | 189,415 | $ | 185,295 | |||||||||||||||||
Noninterest revenue (loss) | 8,995 | 7,353 | 1,313 | (280 | ) | 866 | 17,661 | 3,967 | |||||||||||||||||||||||
Noninterest expense | (35,634 | ) | (35,522 | ) | (38,794 | ) | (38,807 | ) | (36,345 | ) | (109,950 | ) | (108,515 | ) | |||||||||||||||||
Pre-provision pre-tax web income | $ | 34,567 | $ | 36,561 | $ | 25,998 | $ | 23,587 | $ | 27,885 | $ | 97,126 | $ | 80,747 | |||||||||||||||||
Core: | |||||||||||||||||||||||||||||||
Net curiosity revenue | $ | 60,403 | $ | 64,423 | $ | 62,550 | $ | 61,090 | $ | 62,070 | $ | 187,376 | $ | 181,751 | |||||||||||||||||
Noninterest revenue | 3,369 | 3,284 | 3,122 | 4,860 | 3,165 | 9,775 | 11,088 | ||||||||||||||||||||||||
Noninterest expense | (35,509 | ) | (35,392 | ) | (38,660 | ) | (38,686 | ) | (34,107 | ) | (109,561 | ) | (105,514 | ) | |||||||||||||||||
Pre-provision pre-tax web income | $ | 28,263 | $ | 32,315 | $ | 27,012 | $ | 27,264 | $ | 31,128 | $ | 87,590 | $ | 87,325 | |||||||||||||||||
Efficiency Ratio | 55.7 | % | 52.3 | % | 58.9 | % | 58.7 | % | 52.3 | % | 55.6 | % | 54.7 | % |
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 9 months ended | |||||||||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||
GAAP web curiosity revenue | $ | 61,206 | $ | 64,730 | $ | 63,479 | $ | 62,674 | $ | 63,364 | $ | 189,415 | $ | 185,295 | ||||||||||||||||||||
Net (achieve) loss from truthful worth changes on qualifying hedges | (28 | ) | 60 | 129 | (1,122 | ) | (194 | ) | 161 | (957 | ) | |||||||||||||||||||||||
Net amortization of buy accounting changes | (775 | ) | (367 | ) | (1,058 | ) | (462 | ) | (1,100 | ) | (2,200 | ) | (2,587 | ) | ||||||||||||||||||||
Tax equal adjustment | 104 | 131 | 124 | 113 | 113 | 359 | 337 | |||||||||||||||||||||||||||
Core web curiosity revenue FTE | $ | 60,507 | $ | 64,554 | $ | 62,674 | $ | 61,203 | $ | 62,183 | $ | 187,735 | $ | 182,088 | ||||||||||||||||||||
Total common interest-earning belongings (1) | $ | 7,984,558 | $ | 7,746,640 | $ | 7,577,053 | $ | 7,634,601 | $ | 7,616,332 | $ | 7,770,910 | $ | 7,697,229 | ||||||||||||||||||||
Core web curiosity margin FTE | 3.03 | % | 3.33 | % | 3.31 | % | 3.21 | % | 3.27 | % | 3.22 | % | 3.15 | % | ||||||||||||||||||||
GAAP curiosity revenue on complete loans, web | $ | 75,546 | $ | 69,192 | $ | 67,516 | $ | 68,113 | $ | 69,198 | $ | 212,254 | $ | 206,218 | ||||||||||||||||||||
Net (achieve) loss from truthful worth changes on qualifying hedges | (28 | ) | 60 | 129 | (1,122 | ) | (194 | ) | 161 | (957 | ) | |||||||||||||||||||||||
Net amortization of buy accounting changes | (783 | ) | (357 | ) | (1,117 | ) | (535 | ) | (1,126 | ) | (2,256 | ) | (2,478 | ) | ||||||||||||||||||||
Core curiosity revenue on complete loans, web | $ | 74,735 | $ | 68,895 | $ | 66,528 | $ | 66,456 | $ | 67,878 | $ | 210,159 | $ | 202,783 | ||||||||||||||||||||
Average complete loans, web (1) | $ | 6,867,758 | $ | 6,647,131 | $ | 6,586,253 | $ | 6,566,654 | $ | 6,642,434 | $ | 6,701,413 | $ | 6,683,412 | ||||||||||||||||||||
Core yield on complete loans | 4.35 | % | 4.15 | % | 4.04 | % | 4.05 | % | 4.09 | % | 4.18 | % | 4.05 | % |
____________
(1) Excludes buy accounting common balances for all intervals offered.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS’
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||
(Dollars in 1000’s) | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||||||
Total Equity | $ | 670,719 | $ | 670,812 | $ | 675,813 | $ | 679,628 | $ | 668,096 | |||||||||||||||
Less: | |||||||||||||||||||||||||
Goodwill | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||||||
Core deposit Intangibles | (2,147 | ) | (2,282 | ) | (2,420 | ) | (2,562 | ) | (2,708 | ) | |||||||||||||||
Intangible deferred tax liabilities | — | — | 328 | 328 | 287 | ||||||||||||||||||||
Tangible Stockholders’ Common Equity | $ | 650,936 | $ | 650,894 | $ | 656,085 | $ | 659,758 | $ | 648,039 | |||||||||||||||
Total Assets | $ | 8,557,419 | $ | 8,339,587 | $ | 8,169,833 | $ | 8,045,911 | $ | 8,077,334 | |||||||||||||||
Less: | |||||||||||||||||||||||||
Goodwill | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | (17,636 | ) | |||||||||||||||
Core deposit Intangibles | (2,147 | ) | (2,282 | ) | (2,420 | ) | (2,562 | ) | (2,708 | ) | |||||||||||||||
Intangible deferred tax liabilities | — | — | 328 | 328 | 287 | ||||||||||||||||||||
Tangible Assets | $ | 8,537,636 | $ | 8,319,669 | $ | 8,150,105 | $ | 8,026,041 | $ | 8,057,277 | |||||||||||||||
Tangible Stockholders’ Common Equity to Tangible Assets | 7.62 | % | 7.82 | % | 8.05 | % | 8.22 | % | 8.04 | % | |||||||||||||||