Market Overview

Flushing Financial Corporation Reports Record Full Year Net Interest Income; 7.1% Annual Loan Growth While Credit Quality Remains Strong; 11% Quarterly Dividend Increase Planned for 2018

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FOURTH QUARTER 20171

  • GAAP diluted EPS was $0.21, down 40.0% QoQ and 58.0% YoY, largely due to pre-tax provision for loan losses of $6.6 million, or $0.13 per share after tax, primarily related to write-downs on our taxi medallion portfolio, and the impact of U.S. federal tax reform ("Tax Reform") resulting in a charge of $3.8 million, or $0.13 per share, related to the revaluation of our net deferred tax assets
  • Core diluted EPS was $0.33, down 10.8% QoQ and 17.5% YoY, largely due to $6.6 million provision for loan losses
  • Net interest income was $43.1 million, an improvement of 1.7% YoY, but unchanged QoQ
  • Net interest margin was 2.90%, no change QoQ and down 6bps YoY
    • Excluding prepayment penalty income from loans and securities, recovered interest from nonaccrual loans and accelerated accretion of discount upon the call of CLO securities, the net interest margin was 2.77%, down 4bps YoY, but unchanged QoQ
  • Net charge-offs were $11.5 million for 4Q17, primarily due to write-downs of taxi medallion loans totaling $11.2 million, compared to $0.2 million in 3Q17 and recoveries of $0.4 million in 4Q16
  • GAAP and core ROAE were 4.4% and 7.2%, compared with 7.6% and 8.1%, respectively in 3Q17
  • GAAP and core ROAA were 0.4% and 0.6%, respectively, compared with both 0.7% in 3Q17

FULL YEAR 20171

  • GAAP diluted EPS was $1.41, down 37.1%, while core diluted EPS was $1.57, up 3.3% YoY
  • Net interest income was a record $173.1 million, up 3.6%, and net interest margin was 2.93%, down 4bps YoY
    • Excluding prepayment penalty income from loans and securities, recovered interest from nonaccrual loans and accelerated accretion of discount upon the call of CLO securities, the net interest margin was 2.81%, down 2bps YoY
  • GAAP ROAE was 7.8%, compared with 13.1% and core ROAE was 8.6%, compared with 8.9% for 2016
  • GAAP ROAA was 0.7%, compared with 1.1% for 2016 and core ROAA was 0.7% for 2017 and 2016

UNIONDALE, N.Y., Jan. 30, 2018 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the "Company") (Nasdaq-GS:FFIC), the parent holding company for Flushing Bank (the "Bank"), today announced its financial results for the fourth quarter and the year ended December 31, 2017.

John R. Buran, President and Chief Executive Officer, stated, "I am very pleased to announce that we had record net interest income for 2017. The record net interest income was the result of executing our strategic objectives. During the year, loan growth totaled 7.1%. After essentially no loan growth in the third quarter of 2017, loan growth resumed at a rate of 2.2% (not annualized), with the yield on the fourth quarter's originations exceeding the quarterly portfolio yield. In the fourth quarter, we undertook steps to reduce both our future credit and margin risks. In order to reduce future credit risk, we reduced the carrying value of the NYC taxi medallion portfolio by over 50% to an average carrying value of $164,000 per NYC taxi medallion by recognizing a provision for loan losses totaling $6.6 million. The remaining book value of this portfolio is $6.8 million. Future margin risk was reduced by entering into forward swap contracts totaling approximately $400 million beginning at various points in 2018 and 2019, with maturity dates five years from the start date. These swaps provide protection to minimize the effects of rising interest rates on interest-bearing liabilities. Our pre-tax, pre-provision core income for 4Q17 was $20.9 million, an increase of $0.9 million from 3Q17 and $3.1 million from 4Q16."     

"As a result of the Tax Reform, we recorded $3.8 million in tax expense related to the revaluation of our net deferred tax assets based on the new federal corporate tax rate of 21%. For 2018, we expect our effective corporate tax rate to be approximately 23%."

"To further reduce the impact of rising interest rates on our net interest margin, in addition to entering into forward swaps, we continued our strategy of focusing our origination efforts on higher yielding loans. This effort provided a 31bps improvement in the yield received on loan originations and purchases in 2017 to 4.06% compared to 3.75% in 2016. Although, we experienced a decline of 10bps in the yield of originations and purchases received in the fourth quarter of 2017, compared to the third quarter of 2017, the yield for the fourth quarter of 2017 exceeded the fourth quarter of 2016 by 34bps. Additionally, the yield of originations and purchases for the fourth quarter of 2017 was 6bps greater than the quarterly average yield of our total loan portfolio for the same period, excluding prepayment penalty and recovered interest from delinquent loans. At December 31, 2017, our total loan portfolio had an average LTV of 39.1% for loans secured by real estate, while maintaining our strong underwriting standards. In the prior quarter we experienced a delay in closing loans resulting in an increase in the loan pipeline to $417.0 million. During the recent quarter, the pipeline has reduced to $359.8 million, yet remains strong and supports our expectation of solid loan growth in the first quarter of 2018. On the liability side of the balance sheet, the cost of funds increased two basis points from the quarter ended September 30, 2017, as government deposits did not replenish to the projected amount which caused us to rely more on relatively higher costing short-term borrowings."

Mr. Buran continued, "We remain focused on credit quality. Credit quality improved as our non-performing assets decreased by 17% in 2017 and net charge-offs, excluding charge-offs of the taxi medallion loans, remain minimal. Also, total delinquencies have decreased 28% since December 31, 2016. The allowance for loan losses to gross loans has decreased to 0.39% from 0.46% at December 31, 2016 while the allowance for loan losses to non-performing loans increased to 112% from 104% at the end of 2016. The LTV on our non-performing real estate loans at December 31, 2017 is 39.8%."

"We continued implementing the strategic objective of improving the scalability of our branch network.  During the quarter, we opened two converted branches in the Flushing, Queens market, bringing our total conversions to nine branches at December 31, 2017, with the planned conversion of five more branches by the end of 2018. We estimate that the Universal Banker model provides on average a savings of 20% in compensation costs per converted branch."

The Company retains its focus on preserving strong risk management practices, including conservative underwriting standards and improving yields to achieve improved risk-adjusted returns.

  • In the fourth quarter, commercial business, multi-family, and commercial real estate loan originations and purchases represented 37%, 36%, and 16%, respectively, of all originations, which were made while maintaining conservative loan-to-values, debt coverage ratios, and increasing yield. 
  • The average interest rate obtained for fourth quarter originations and purchases totaled 4.15%, a decrease of 10bps compared to 4.25% for 3Q17 and an increase of 34bps compared to 3.81% for 4Q16.
  • The average rate of mortgage loan applications in the pipeline totaled 4.10% at December 31, 2017, as compared to 4.04% at September 30, 2017 and 4.20% at December 31, 2016.
  • Multi-family (excluding underlying co-operative mortgages), commercial real estate, and one-to-four family mixed-use property mortgage loans originated during 4Q17 had a yield of 3.91%, a decrease of 21bps from 4.12% for 3Q17 and an increase of 25bps from 3.66% for 4Q16. We have maintained our asset quality as these loans had an average loan-to-value ratio of 50.4% and an average debt coverage ratio of 172%.

Mr. Buran concluded, "As recently announced, we have already shared some of the anticipated benefits of the recent Tax Reform with our non-executive employees in the form of one-time bonuses and with our shareholders in the form of our planned 11% increase in our quarterly dividend. We continue to evaluate opportunities to invest additional tax savings into the business to position the Company for future growth.  We remain well capitalized and positioned to deliver profitable growth and long-term value to our shareholders as we continue to execute on our strategic objectives."

__________________
1
See the table entitled "Reconciliation of Non-GAAP Financial Measures."

Summary of Strategic Objectives

  • Increase core deposits and continue to improve funding mix
  • Increase net interest income by leveraging loan pricing opportunities and portfolio mix
  • Enhance core earnings power by improving scalability and efficiency
  • Manage credit risk
  • Maintain well capitalized levels under all stress test scenarios

Earnings Summary:

Net Interest Income

Net interest income for 4Q17 was $43.1 million, an increase of $0.7 million, or 1.7% YoY (December 31, 2017 compared to December 31, 2016) and was unchanged QoQ (December 31, 2017 compared to September 30, 2017).

  • Net interest margin of 2.90%, decreased 6bps YoY but remains unchanged QoQ
  • Net interest spread of 2.75%, decreased 9bps YoY and 2bps QoQ
  • Net interest income includes prepayment penalty income from loans and securities of $1.4 million in 4Q17 compared with $1.6 million in 4Q16 and 3Q17, and recovered interest from delinquent loans of $0.1 million in 4Q17, compared to $0.6 million in 4Q16 and $0.3 million in 3Q17
  • Net interest income includes $0.4 million in accelerated accretion of discount upon call of CLO securities in 4Q17
  • Excluding prepayment penalty income, accelerated accretion of discount and recovered interest from nonaccrual loans, the yield on interest-earning assets was 3.90% in 4Q17, an improvement from 3.77% in 4Q16 and 3.87% in 3Q17, and the net interest margin was 2.77% in 4Q17, which decreased from 2.81% in 4Q16 and was unchanged from 2.77% in 3Q17
  • Average balance of total interest-earning assets of $5,934.5 million, increased $217.2 million, or 3.8% YoY and decreased $1.6 million QoQ
  • Yield on interest-earning assets of 4.02%, increased 10bps YoY and 2bps QoQ
  • Cost of interest-bearing liabilities of 1.27%, increased 19bps YoY and 4bps QoQ
  • Cost of funds of 1.17%, increased 16bps YoY and 2bps QoQ, driven by increases in rates paid on certificates of deposit, government deposits and short-term borrowings resulting from increases in the Fed Funds rate during 2017  

Provision for loan losses

Provision recorded for loan losses for 4Q17 was $6.6 million compared to none in 4Q16 and $3.3 million in 3Q17.

  • Provision was primarily driven by a reduction in the estimated fair value of NYC taxi medallions based on most recent sales data
  • Remaining balance of taxi medallion portfolio totals $6.8 million

Non-interest Income

Non-interest income for 4Q17 was $3.1 million, a decrease of $12.4 million, or 80.1%, YoY and an increase of $1.4 million, or 84.5% QoQ.

  • Non-interest income included net losses from fair value adjustments of $0.6 million in 4Q17, $0.5 million in 4Q16 and $1.3 million in 3Q17, net gains on sale of building of $14.2 million in 4Q16 and net losses from the sale of securities of $0.8 million in 4Q16 and $0.2 million in 3Q17
  • Absent above items, non-interest income was $3.7 million, an increase of $1.1 million YoY and $0.6 million QoQ

Non-interest Expense

Non-interest expense for 4Q17 was $25.9 million, a decrease of $9.5 million, or 26.8%, YoY and $0.1 million, or 0.3% QoQ.

  • As part of a balance sheet restructure, 4Q16 included a non-recurring pre-payment penalty on borrowings of $8.3 million; absent this item, non-interest expense decreased $1.2 million, or 4.5% YoY, driven by decreased salaries and benefits, foreclosure expense due to continued improvement in asset quality and a reduction in FDIC insurance expense, due to lower assessment rates
  • Lower costs associated with FDIC insurance and foreclosure expense should be sustainable
  • The efficiency ratio was 55.4% in 4Q17 compared to 59.6% in 4Q16 and 56.5% in 3Q17

Provision for Income Taxes

The provision for income taxes in 4Q17 was $7.7 million, a decrease of $0.4 million, or 5.2%, YoY and an increase of $2.4 million, or 45.4%, QoQ.

  • Additional tax expense totaling $3.8 million from revaluation of net deferred tax assets due to new federal corporate tax rate of 21%
  • Absent the above item, the effective tax rates were 28.7% in 4Q17, 36.2% in 4Q16 and 34.2% in 3Q17
  • The improvement in the Company's effective tax rate in 4Q17 was primarily due to increased impact of preferential tax items

Financial Condition Summary:

Loans:

  • Net loans held for investment were $5,156.6 million reflecting an increase of 2.2% QoQ (not annualized) and 7.1% for 2017 as we continue to focus on the origination of multi-family, commercial real estate and commercial business loans with a full relationship while emphasizing rate over volume
  • Loan originations and purchases of multi-family, commercial real estate and commercial business loans totaled $293.8 million for 4Q17, or 89.3% of loan production
  • Loan pipeline was $359.8 million at December 31, 2017, compared to $417.0 million at September 30, 2017 and $310.9 million at December 31, 2016
  • The loan-to-value ratio on our portfolio of real estate dependent loans as of December 31, 2017 totaled 39.1%
  • Mortgage loan originations and purchases in 4Q17 were more heavily weighted towards multi-family loans, which generally have a lower average yield than commercial mortgages

The following table shows the average rate received from loan originations and purchases for the periods indicated:

    For the three months ended
    December 31,   September 30,   December 31,
Loan type   2017    2017    2016 
Mortgage loans   3.92 %   4.13 %   3.70 %
Non-mortgage loans   4.52 %   4.43 %   4.05 %
Total loans   4.15 %   4.25 %   3.81 %
             


Credit Quality:

  • Non-performing loans totaled $18.1 million, a decrease of $3.3 million, or 15.3%, from $21.4 million at December 31, 2016
  • Classified assets totaled $34.0 million, a decrease of $10.0 million, or 22.8%, from $44.0 million at December 31, 2016, primarily due to reductions in non-performing loans and our exposure to taxi medallion loans
  • Loans classified as troubled debt restructured (TDR) totaled $13.2 million, a decrease of $4.2 million, or 24.3%, from $17.4 million at December 31, 2016, due to the reduction in our exposure to taxi medallion loans
  • We anticipate continued low loss content in the portfolio, as our strong underwriting standards coupled with our practice of obtaining updated appraisals and recording charge-offs early in the delinquency process has resulted in a 39.8% average loan-to-value for non-performing loans collateralized by real estate at December 31, 2017
  • Provision for loan losses of $9.9 million was recorded during the year ended December 31, 2017, as the estimated fair value of NYC taxi medallions was lowered based on most recent sales data, while no provision for loan losses was recorded during 2016; net charge-offs totaled $11.7 million during the year ended December 31, 2017, of which $11.2 million was related to taxi medallion loans, compared to net recoveries of $0.7 million for the year ended December 31, 2016

Capital Management:

  • The Company and Bank, at December 31, 2017, were both well capitalized under all applicable regulatory requirements
  • During the year ended December 31, 2017, stockholders' equity increased $18.8 million, or 3.6%, to $532.6 million due to net income of $41.1 million, partially offset by the declaration and payment of dividends on the Company's common stock and repurchases of the Company's common stock
  • During the year ended December 31, 2017, the Company repurchased 241,625 treasury shares at an average cost of $27.59 per share; as of December 31, 2017, up to 254,280 shares may be repurchased under the current authorized stock repurchase program, which has no expiration or maximum dollar limit
  • Book value per common share increased to $18.63 at December 31, 2017, from $17.95 at December 31, 2016 and tangible book value per common share, a non-GAAP measure, increased to $18.08 at December 31, 2017, from $17.40 at December 31, 2016

Conference Call Information:

  • John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, will host a conference call on Wednesday, January 31, 2018 at 9:30 AM (ET) to discuss the Company's strategy and results for the fourth quarter of 2017
  • Dial-in for Live Call: 1-888-317-6016
  • Webcast: https://services.choruscall.com/links/ffic180131.html 
  • Dial-in for Replay: 1-877-344-7529
  • Replay Access Code: 10115613
  • The conference call will be simultaneously webcast and archived through 5:00 PM (ET) on January 31, 2019

About Flushing Financial Corporation

Flushing Financial Corporation (NASDAQ:FFIC) is the holding company for Flushing Bank®, a New York State-chartered commercial bank insured by the Federal Deposit Insurance Corporation. The Bank serves consumers, businesses, professionals, corporate clients, and public entities by offering a full complement of deposit, loan, and cash management services through its banking offices located in Queens, Brooklyn, Manhattan, and Nassau County. As a leader in real estate lending, the Bank's experienced lending team creates mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also operates an online banking division, iGObanking.com®, which offers competitively priced deposit products to consumers nationwide.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at http://www.flushingbank.com.  

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

 

- Statistical Tables Follow -

 

           
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
           
      For the three months ended   For the twelve months ended
      December 31,   September 30,   December 31,   December 31,
        2017       2017       2016       2017       2016  
                   
Interest and Dividend Income                    
Interest and fees on loans   $   53,449     $   53,318     $   49,973     $   209,283     $   195,125  
Interest and dividends on securities:                    
  Interest       6,112         5,850         5,866         24,489         25,141  
  Dividends       13         30         121         287         481  
Other interest income       123         121         59         526         250  
  Total interest and dividend income       59,697         59,319         56,019         234,585         220,997  
                       
Interest Expense                    
Deposits       11,174         10,655         8,760         40,319         33,350  
Other interest expense       5,463         5,623         4,908         21,159         20,561  
  Total interest expense       16,637         16,278         13,668         61,478         53,911  
                       
Net Interest Income       43,060         43,041         42,351         173,107         167,086  
Provision for loan losses       6,595         3,266         -          9,861         -   
Net Interest Income After Provision for Loan Losses       36,465         39,775         42,351         163,246         167,086  
                       
Non-interest Income                    
Banking services fee income       1,383         885         983         4,156         3,758  
Net (loss) gain on sale of securities       -          (186 )       (839 )       (186 )       1,524  
Net gain on sale of loans        207         152         -          603         584  
Net gain on sale of buildings       -          -          14,204         -          48,018  
Net loss from fair value adjustments       (631 )       (1,297 )       (509 )       (3,465 )       (3,434 )
Federal Home Loan Bank of New York stock dividends       875         740         794         3,081         2,664  
Gains from life insurance proceeds       -          238         2         1,405         460  
Bank owned life insurance       809         816         701         3,227         2,797  
Other income       421         313         90         1,541         1,165  
  Total non-interest income       3,064         1,661         15,426         10,362         57,536  
                       
Non-interest Expense                    
Salaries and employee benefits       14,249         15,310         15,801         62,087         60,825  
Occupancy and equipment       2,757         2,502         2,550         10,409         9,848  
Professional services       1,822         1,763         1,813         7,500         7,720  
FDIC deposit insurance       487         499         613         1,815         2,993  
Data processing       1,365         1,349         1,135         5,238         4,364  
Depreciation and amortization       1,339         1,173         1,187         4,832         4,450  
Other real estate owned/foreclosure expense       28         121         476         404         1,307  
Net loss (gain) from sales of real estate owned       -          -          275         (50 )       2,001  
Prepayment penalty on borrowings       -          -          8,274         -          10,356  
Other operating expenses       3,832         3,249         3,251         15,239         14,739  
  Total non-interest expense       25,879         25,966         35,375         107,474         118,603  
                       
Income Before Income Taxes       13,650         15,470         22,402         66,134         106,019  
                       
Provision for Income Taxes                    
Federal       7,838         4,680         8,062         22,844         33,580  
State and local       (145 )       611         54         2,169         7,523  
  Total taxes       7,693         5,291         8,116         25,013         41,103  
                       
Net Income   $   5,957     $   10,179     $   14,286     $   41,121     $   64,916  
                       
                       
Basic earnings per common share   $   0.21     $   0.35     $   0.50     $   1.41     $   2.24  
Diluted earnings per common share   $   0.21     $   0.35     $   0.50     $   1.41     $   2.24  
Dividends per common share   $   0.18     $   0.18     $   0.17     $   0.72     $   0.68  
                       


 

           
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)
           
  December 31,   September 30,   December 31,
    2017       2017       2016  
 ASSETS          
Cash and due from banks $   51,546     $   60,161     $   35,857  
Securities held-to-maturity:          
    Mortgage-backed securities     7,973         7,978         -  
    Other securities     22,913         22,952         37,735  
Securities available for sale:          
   Mortgage-backed securities     509,650         519,861         516,476  
   Other securities     228,704         276,698         344,905  
Loans:           
   Multi-family residential   2,273,595       2,236,173       2,178,504  
   Commercial real estate   1,368,112       1,352,775       1,246,132  
   One-to-four family ― mixed-use property     564,206         556,723         558,502  
   One-to-four family ― residential     180,663         177,578         185,767  
   Co-operative apartments     6,895         7,035         7,418  
   Construction     8,479         15,811         11,495  
   Small Business Administration     18,479         14,485         15,198  
   Taxi medallion     6,834         18,165         18,996  
   Commercial business and other     732,973         674,706         597,122  
   Net unamortized premiums and unearned loan fees     16,763         16,925         16,559  
   Allowance for loan losses     (20,351 )       (25,269 )       (22,229 )
         Net loans   5,156,648       5,045,107       4,813,464  
Interest and dividends receivable     21,405         21,076         20,228  
Bank premises and equipment, net     30,836         28,389         26,561  
Federal Home Loan Bank of New York stock     60,089         55,228         59,173  
Bank owned life insurance     131,856         131,047         132,508  
Goodwill     16,127         16,127         16,127  
Other assets     61,527         76,758         55,453  
         Total assets $ 6,299,274     $ 6,261,382     $ 6,058,487  
           
LIABILITIES          
Due to depositors:          
   Non-interest bearing $   385,269     $   362,509     $   333,163  
   Interest-bearing:          
     Certificate of deposit accounts   1,351,933       1,404,555       1,372,115  
     Savings accounts     290,280         323,186         254,283  
     Money market accounts     979,958         991,706         843,370  
     NOW accounts   1,333,232       1,308,821       1,362,484  
         Total interest-bearing deposits   3,955,403       4,028,268       3,832,252  
Mortgagors' escrow deposits     42,606         53,671         40,216  
Borrowed funds    1,309,653       1,200,682       1,266,563  
Other liabilities     73,735         76,643         72,440  
         Total liabilities   5,766,666       5,721,773       5,544,634  
           
STOCKHOLDERS' EQUITY          
Preferred stock (5,000,000 shares authorized; none issued)     -         -         -  
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares issued at December 31, 2017, September 30, 2017 and December 31, 2016; 28,588,266 shares, 28,819,891 shares and 28,632,904 shares outstanding at December 31, 2017, September 30, 2017 and December 31, 2016, respectively)     315         315         315  
Additional paid-in capital     217,906         216,929         214,462  
Treasury stock (2,942,329 shares, 2,710,704 shares and 2,897,691 shares at December 31, 2017, September 30, 2017 and December 31, 2016, respectively)     (57,675 )       (51,287 )       (53,754 )
Retained earnings     381,048         380,316         361,192  
Accumulated other comprehensive loss, net of taxes     (8,986 )       (6,664 )       (8,362 )
         Total stockholders' equity     532,608         539,609         513,853  
           
         Total liabilities and stockholders' equity $ 6,299,274     $ 6,261,382     $ 6,058,487  
           

 

 

           
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
           
    At or for the three months ended   At or for the twelve months ended  
    December 31,   September 30,   December 31,   December 31,   
      2017     2017     2016     2017     2016  
Per Share Data                      
Basic earnings per share   $   0.21   $   0.35   $   0.50   $   1.41   $   2.24  
Diluted earnings per share   $   0.21   $   0.35   $   0.50   $   1.41   $   2.24  
Average number of shares outstanding for:                      
  Basic earnings per common share computation       29,045,491       29,119,753       28,849,783       29,080,095       28,956,859  
  Diluted earnings per common share computation       29,046,111       29,120,356       28,859,665       29,081,723       28,969,582  
Shares outstanding       28,588,266       28,819,891       28,632,904       28,588,266       28,632,904  
Book value per common share (1)   $   18.63   $   18.72   $   17.95   $   18.63   $   17.95  
Tangible book value per common share (2)   $   18.08   $   18.18   $   17.40   $   18.08   $   17.40  
                       
Stockholders' Equity                      
Stockholders' equity       532,608       539,609       513,853       532,608       513,853  
Tangible stockholders' equity       516,772       523,873       498,115       516,772       498,115  
                       
Average Balances                      
Total loans, net   $   5,087,102   $   5,033,666   $   4,757,124   $   4,988,613   $   4,600,682  
Total interest-earning assets       5,934,493       5,936,129       5,717,298       5,916,073       5,626,748  
Total assets       6,243,686       6,239,321       6,003,125       6,217,746       5,913,534  
Total due to depositors       4,020,334       3,972,663       3,796,337       4,036,347       3,748,822  
Total interest-bearing liabilities       5,254,030       5,275,937       5,077,893       5,268,100       5,035,989  
Stockholders' equity       537,201       536,468       512,317       530,300       496,820  
                       
Performance Ratios (3)                      
Return on average assets       0.38 %     0.65 %     0.95 %     0.66 %     1.10 %
Return on average equity       4.44       7.59       11.15       7.75       13.07  
Yield on average interest-earning assets       4.02       4.00       3.92       3.97       3.93  
Cost of average interest-bearing liabilities       1.27       1.23       1.08       1.17       1.07  
Cost of funds       1.17       1.15       1.01       1.09       1.01  
Interest rate spread during period       2.75       2.77       2.84       2.80       2.86  
Net interest margin       2.90       2.90       2.96       2.93       2.97  
Non-interest expense to average assets       1.66       1.66       2.36       1.73       2.01  
Efficiency ratio (4)       55.35       56.51       59.63       57.90       59.64  
Average interest-earning assets to average interest-bearing liabilities       1.13  X     1.13  X     1.13  X     1.12  X     1.12  X
                       


(1)   Calculated by dividing stockholders' equity by shares outstanding.
(2)   Calculated by dividing tangible stockholders' common equity, a non-GAAP measure by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets (goodwill, net of deferred taxes). See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
(3)   Ratios are presented on an annualized basis, where appropriate.
(4)   Efficiency ratio, a non-GAAP measure, was calculated by dividing non-interest expense (excluding OREO expense, prepayment penalties from the extinguishment of debt and the net gain/loss from the sale of OREO) by the total of net interest income and non-interest income (excluding net gains and losses from fair value adjustments, net gain and losses from the sale of securities, life insurance proceeds, and sale of buildings).

 

             
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
             
    At or for the year     At or for the year  
    ended     ended  
    December 31, 2017     December 31, 2016  
             
Selected Financial Ratios and Other Data            
             
Regulatory capital ratios (for Flushing Financial Corporation):            
  Tier 1 capital   $   563,426       $   539,228    
  Common equity Tier 1 capital       527,727           506,432    
  Total risk-based capital       658,777           636,457    
             
  Tier 1 leverage capital (well capitalized = 5%)       9.02   %       9.00   %
  Common equity Tier 1 risk-based capital (well capitalized = 6.5%)       11.59           11.79    
  Tier 1 risk-based capital (well capitalized = 8.0%)       12.38           12.56    
  Total risk-based capital (well capitalized = 10.0%)       14.47           14.82    
             
Regulatory capital ratios (for Flushing Bank only):            
  Tier 1 capital   $   631,285       $   607,033    
  Common equity Tier 1 capital       631,285           607,033    
  Total risk-based capital       651,636           629,262    
             
  Tier 1 leverage capital (well capitalized = 5%)       10.11   %       10.12   %
  Common equity Tier 1 risk-based capital (well capitalized = 6.5%)       13.87           14.12    
  Tier 1 risk-based capital (well capitalized = 8.0%)       13.87           14.12    
  Total risk-based capital (well capitalized = 10.0%)       14.31           14.64    
             
Capital ratios:            
  Average equity to average assets       8.53   %       8.40   %
  Equity to total assets       8.46           8.48    
  Tangible common equity to tangible assets (1)       8.22           8.24    
             
Asset quality:            
  Non-accrual loans (2)   $   15,710       $   21,030    
  Non-performing loans       18,134           21,416    
  Non-performing assets       18,134           21,949    
  Net charge-offs/ (recoveries)       11,739           (694 )  
             
Asset quality ratios:            
  Non-performing loans to gross loans       0.35   %       0.44   %
  Non-performing assets to total assets       0.29           0.36    
  Allowance for loan losses to gross loans       0.39           0.46    
  Allowance for loan losses to non-performing assets       112.23           101.28    
  Allowance for loan losses to non-performing loans       112.23           103.80    
             
Full-service customer facilities       18           19    
             


(1)   See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
(2)   Excludes performing non-accrual TDR loans.

 

     
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)
 
     
  For the three months ended  
  December 31, 2017   September 30, 2017   December 31, 2016  
  Average   Yield/   Average   Yield/   Average   Yield/  
  Balance Interest Cost   Balance Interest Cost   Balance Interest Cost  
Interest-earning Assets:                        
  Mortgage loans, net  $   4,355,973 $   45,577   4.19 % $   4,350,338 $   46,121   4.24 % $   4,140,511 $   44,219   4.27 %
  Other loans, net      731,129     7,872   4.31       683,328     7,197   4.21       616,613     5,754   3.73  
      Total loans, net (1)     5,087,102     53,449   4.20       5,033,666     53,318   4.24       4,757,124     49,973   4.20  
  Taxable securities:                        
  Mortgage-backed securities     524,098     3,567   2.72       520,889     3,335   2.56       514,527     3,002   2.33  
  Other securities     151,565     1,883   4.97       189,957     1,787   3.76       248,765     2,203   3.54  
      Total taxable securities     675,663     5,450   3.23       710,846     5,122   2.88       763,292     5,205   2.73  
  Tax-exempt securities: (2)                        
  Other securities     123,816     675   2.18       142,899     758   2.12       147,184     782   2.13  
      Total tax-exempt securities     123,816     675   2.18       142,899     758   2.12       147,184     782   2.13  
  Interest-earning deposits and federal funds sold     47,912     123   1.03       48,718     121   0.99       49,698     59   0.47  
Total interest-earning assets     5,934,493     59,697   4.02       5,936,129     59,319   4.00       5,717,298     56,019   3.92  
Other assets     309,193           303,192           285,827      
      Total assets $   6,243,686       $   6,239,321       $   6,003,125      
                         
                         
Interest-bearing Liabilities:                        
  Deposits:                        
    Savings accounts $   306,273     519   0.68   $   330,316 $   583   0.71   $   256,677     309   0.48  
    NOW accounts     1,357,028     2,634   0.78       1,340,228     2,468   0.74       1,370,618     2,028   0.59  
    Money market accounts     984,619     2,664   1.08       927,067     2,337   1.01       780,233     1,315   0.67  
    Certificate of deposit accounts     1,372,414     5,322   1.55       1,375,052     5,218   1.52       1,388,809     5,081   1.46  
      Total due to depositors     4,020,334     11,139   1.11       3,972,663     10,606   1.07       3,796,337     8,733   0.92  
    Mortgagors' escrow accounts     65,127     35   0.21       54,236     49   0.36       58,151     27   0.19  
      Total interest-bearing deposits     4,085,461     11,174   1.09       4,026,899     10,655   1.06       3,854,488     8,760   0.91  
    Borrowings     1,168,569     5,463   1.87       1,249,038     5,623   1.80       1,223,405     4,908   1.60  
      Total interest-bearing liabilities     5,254,030     16,637   1.27       5,275,937     16,278   1.23       5,077,893     13,668   1.08  
Non interest-bearing demand deposits     373,136           354,149           331,232      
Other liabilities     79,319           72,767           81,683      
    Total liabilities     5,706,485           5,702,853           5,490,808      
Equity     537,201           536,468           512,317      
    Total liabilities and equity $   6,243,686       $   6,239,321       $   6,003,125      
                         
Net interest income / net interest rate spread   $   43,060   2.75 %   $   43,041   2.77 %   $   42,351   2.84 %
                         
Net interest-earning assets / net interest margin $   680,463     2.90 % $   660,192     2.90 % $   639,405     2.96 %
                         
Ratio of interest-earning assets to interest-bearing liabilities       1.13  X       1.13  X       1.13  X
                         


(1)   Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $1.4 million, $1.6 million and $1.5 million for the three months ended December 31, 2017, September 30, 2017 and December 31, 2016, respectively.
(2)   Interest income on tax-exempt securities does not include the tax benefit of the tax-exempt securities.

 

     
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)
 
     
  For the year ended  
  December 31, 2017     December 31, 2016  
  Average   Yield/     Average   Yield/  
  Balance Interest Cost     Balance Interest Cost  
Interest-earning Assets:                  
  Mortgage loans, net  $   4,304,889 $   181,006   4.20 %   $   4,014,734 $   173,419   4.32 %
  Other loans, net      683,724     28,277   4.14         585,948     21,706   3.70  
      Total loans, net (1)     4,988,613     209,283   4.20         4,600,682     195,125   4.24  
  Taxable securities:                  
  Mortgage-backed securities     526,934     13,689   2.60         581,505     14,231   2.45  
  Other securities     199,350     8,103   4.06         243,567     8,243   3.38  
      Total taxable securities     726,284     21,792   3.00         825,072     22,474   2.72  
  Tax-exempt securities: (2)                  
  Other securities     139,704     2,984   2.14         142,472     3,148   2.21  
      Total tax-exempt securities     139,704     2,984   2.14         142,472     3,148   2.21  
  Interest-earning deposits and federal funds sold     61,472     526   0.86         58,522     250   0.43  
Total interest-earning assets     5,916,073     234,585   3.97         5,626,748     220,997   3.93  
Other assets     301,673             286,786      
      Total assets $   6,217,746         $   5,913,534      
                   
                   
Interest-bearing Liabilities:                  
  Deposits:                  
    Savings accounts $   292,887     1,808   0.62     $   260,948     1,219   0.47  
    NOW accounts     1,444,944     9,640   0.67         1,496,712     7,891   0.53  
    Money market accounts     908,025     8,151   0.90         581,390     3,592   0.62  
    Certificate of deposit accounts     1,390,491     20,579   1.48         1,409,772     20,536   1.46  
      Total due to depositors     4,036,347     40,178   1.00         3,748,822     33,238   0.89  
    Mortgagors' escrow accounts     61,962     141   0.23         56,152     112   0.20  
      Total interest-bearing deposits     4,098,309     40,319   0.98         3,804,974     33,350   0.88  
  Borrowings     1,169,791     21,159   1.81         1,231,015     20,561   1.67  
      Total interest-bearing liabilities     5,268,100     61,478   1.17         5,035,989     53,911   1.07  
                   
Non interest-bearing demand deposits     348,518             305,096      
Other liabilities     70,828             75,629      
      Total liabilities     5,687,446             5,416,714      
Equity     530,300             496,820      
      Total liabilities and equity $   6,217,746         $   5,913,534      
                   
Net interest income / net interest rate spread   $   173,107   2.80 %     $   167,086   2.86 %
                   
Net interest-earning assets / net interest margin $   647,973     2.93 %   $   590,759     2.97 %
                   
Ratio of interest-earning assets to interest-bearing liabilities       1.12  X         1.12  X
                   


(1)   Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $5.0 million and $6.6 million for the years ended December 31, 2017 and 2016, respectively.
(2)   Interest income on tax-exempt securities does not include the tax benefit of the tax-exempt securities.

 

                                   
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT COMPOSITION
(Unaudited)
                                   
                      December 2017 vs.         December 2017 vs.  
        December 31, September 30,   June 30,   March 31,   September 2017   December 31,     December 2016,  
(Dollars in thousands)   2017   2017     2017     2017   % Change     2016     % Change  
Deposits                              
Non-interest bearing $   385,269 $   362,509   $   349,302   $   344,028   6.3 %   $   333,163     15.6 %  
Interest bearing:                            
  Certificate of deposit accounts     1,351,933     1,404,555       1,332,377       1,411,819   -3.7 %       1,372,115     -1.5 %  
  Savings accounts     290,280     323,186       325,815       254,822   -10.2 %       254,283     14.2 %  
  Money market accounts     979,958     991,706       837,565       851,129   -1.2 %       843,370     16.2 %  
  NOW accounts     1,333,232     1,308,821       1,368,441       1,487,120   1.9 %       1,362,484     -2.1 %  
    Total interest-bearing deposits     3,955,403     4,028,268       3,864,198       4,004,890   -1.8 %       3,832,252     3.2 %  
                                   
      Total deposits $   4,340,672 $   4,390,777   $   4,213,500   $   4,348,918   -1.1 %   $   4,165,415     4.2 %  
                                                 

 

 

         
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOANS
(Unaudited)
Loan Originations and Purchases        
    For the three months   For the year ended
    December 31,   September 30,   December 31,   December 31,
(In thousands)     2017     2017     2016     2017     2016
Multi-family residential   $   118,784   $   64,551   $   77,812   $   373,512   $   371,197
Commercial real estate       53,381       25,385       77,607       238,057       322,721
One-to-four family – mixed-use property       19,913       13,136       20,242       65,247       62,735
One-to-four family – residential       9,545       5,843       7,770       26,168       24,820
Co-operative apartments       100       232       -        332       470
Construction       726       148       9,738       7,847       15,772
Small Business Administration       4,772       4,276       1,662       11,559       8,447
Taxi medallion       -        -        -        -        - 
Commercial business and other       121,598       69,354       87,761       316,748       326,776
    Total   $   328,819   $   182,925   $   282,592   $   1,039,470   $   1,132,938

 

 

Loan Composition                        
                      December 2017 vs.       December 2017 vs.
        December 31,   September 30,   June 30,   March 31, September 2017   December 31,   December 2016
(Dollars in thousands)   2017       2017       2017       2017   % Change     2016     % Change
Loans held for investment:                            
Multi-family residential $   2,273,595     $   2,236,173     $   2,243,643     $   2,261,946   1.7 %     $   2,178,504     4.4 %  
Commercial real estate     1,368,112         1,352,775         1,349,634         1,268,770   1.1 %         1,246,132     9.8 %  
One-to-four family ― mixed-use property     564,206         556,723         556,906         561,355   1.3 %         558,502     1.0 %  
One-to-four family ― residential     180,663         177,578         181,213         184,201   1.7 %         185,767     -2.7 %  
Co-operative apartments     6,895         7,035         7,069         7,216   -2.0 %         7,418     -7.1 %  
Construction     8,479         15,811         16,842         12,413   -46.4 %         11,495     -26.2 %  
Small Business Administration     18,479         14,485         10,591         10,519   27.6 %         15,198     21.6 %  
Taxi medallion     6,834         18,165         18,303         18,832   -62.4 %         18,996     -64.0 %  
Commercial business and other     732,973         674,706         644,262         632,503   8.6 %         597,122     22.8 %  
Net unamortized premiums and unearned loan fees     16,763         16,925         17,217         16,836   -1.0 %         16,559     1.2 %  
Allowance for loan losses     (20,351 )       (25,269 )       (22,157 )       (22,211 ) -19.5 %         (22,229 )   -8.4 %  
      Net loans $   5,156,648     $   5,045,107     $   5,023,523     $   4,952,380   2.2 %     $   4,813,464     7.1 %  

 


Net Loans Activity  
    Three Months Ended
    December 31,   September, 30   June 30,   March 31,   December 31,
(In thousands)     2017       2017       2017       2017       2016  
Loans originated and purchased $   328,819     $   182,925     $   261,155     $   266,571     $   282,592  
Principal reductions     (209,400 )       (155,007 )       (143,195 )       (122,897 )       (187,780 )
Loans transferred to held-for-sale     -          -          (30,565 )       -          -   
Loans sold       (1,018 )       (2,606 )       (16,337 )       (4,874 )       -   
Loan charged-offs     (11,616 )       (324 )       (350 )       (179 )       (370 )
Foreclosures       -          -          -          -          (138 )
Net change in deferred (fees) and costs     (162 )       (292 )       381         277         112  
Net change in the allowance for loan losses     4,918         (3,112 )       54         18         (434 )
  Total loan activity $   111,541     $   21,584     $   71,143     $   138,916     $   93,982  
                                         

 

 

                       
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NON-PERFORMING ASSETS and NET CHARGE-OFFS
(Unaudited)
                       
      December 31,   September 30,   June 30,   March 31,   December 31,
(Dollars in thousands)     2017       2017       2017       2017       2016  
Loans 90 Days Or More Past Due and Still Accruing:                    
Multi-family residential   $   -     $   415     $   -     $   -     $   -  
Commercial real estate       2,424         38         -         75         -  
One-to-four family - mixed-use property       -         129         -         -         386  
Construction       -         -         602         602         -  
Taxi medallion       -         1,147         727         -         -  
    Total       2,424         1,729         1,329         677         386  
                       
Non-accrual Loans:                    
Multi-family residential       3,598         1,309         1,537         1,354         1,837  
Commercial real estate       1,473         1,147         1,948         1,462         1,148  
One-to-four family - mixed-use property       1,867         2,217         2,971         3,328         4,025  
One-to-four family - residential       7,808         7,434         7,616         7,847         8,241  
Small Business Administration       46         50         53         58         1,886  
Taxi medallion(1)       918         -         -         3,771         3,825  
Commercial business and other       -         4         5         38         68  
    Total       15,710         12,161         14,130         17,858         21,030  
                       
    Total Non-performing Loans       18,134         13,890         15,459         18,535         21,416  
                       
Other Non-performing Assets:                    
Real estate acquired through foreclosure       -         -         -         -         533  
    Total       -         -         -         -         533  
                       
    Total Non-performing Assets   $   18,134     $   13,890     $   15,459     $   18,535     $   21,949  
                       
Non-performing Assets to Total Assets     0.29 %     0.22 %     0.25 %     0.30 %     0.36 %
Allowance For Loan Losses to Non-performing Loans     112.2 %     181.9 %     143.3 %     119.8 %     103.8 %
                       


(1)   Not included in the above analysis are troubled debt restructured taxi medallion loans totaling $5.9 million at December 31, 2017.

Net Charge-Offs (Recoveries)      
      Three Months Ended  
      December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands)     2017       2017       2017       2017       2016    
Multi-family residential   $   (1 )   $   224     $   (53 )   $   (16 )   $   (103 )  
Commercial real estate       (3 )       (25 )       4         (68 )       -    
One-to-four family – mixed-use property       (37 )       1         (67 )       34         (520 )  
One-to-four family – residential       212         (58 )       170         -         40    
Small Business Administration       109         (17 )       14         26         186    
Taxi medallion       11,229         -         -         54         142    
Commercial business and other       4         29         (14 )       (12 )       (179 )  
    Total net loan charge-offs (recoveries)   $   11,513     $   154     $   54     $   18     $   (434 )  
                         


Core Diluted EPS, Core ROAE, Core ROAA, tangible book value per common share and core earnings before provision and income taxes are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears in tabular form at the end of this release. The Company believes that these measures are useful for both investors and management to understand the effects of certain non-interest items and provide an alternative view of the Company's performance over time and in comparison to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.

These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

 

         
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
         
    Three Months Ended   Twelve Months Ended
    December 31, September 30, December 31,   December 31, December 31,
      2017     2017     2016       2017     2016  
     
               
GAAP income before income taxes $   13,650   $   15,470   $   22,402     $   66,134   $   106,019  
               
Net loss from fair value adjustments     631       1,297       509         3,465       3,434  
Net loss (gain) on sale of securities     -       186       839         186       (1,524 )
Gain from life insurance proceeds     -       (238 )     (2 )       (1,405 )     (460 )
Net gain on sale of buildings     -       -       (14,204 )       -       (48,018 )
Prepayment penalty on borrowings     -       -       8,274         -       10,356  
               
Core income before taxes     14,281       16,715       17,818         68,380       69,807  
               
Provision for income taxes for core income     4,652       5,812       6,227         22,613       25,855  
               
Core net income $   9,629   $   10,903   $   11,591     $   45,767   $   43,952  
               
GAAP diluted earnings per common share $   0.21   $   0.35   $   0.50     $   1.41   $   2.24  
               
Net loss from fair value adjustments, net of tax     0.01       0.03       0.01         0.07       0.07  
Net loss (gain) on sale of securities, net of tax     -        -        0.02         -        (0.03 )
Gain from life insurance proceeds     -        (0.01 )     -          (0.05 )     (0.02 )
Net gain on sale of buildings, net of tax     -        -        (0.29 )       -        (0.95 )
Prepayment penalty on borrowings     -        -        0.17         -        0.21  
Federal tax reform of 2017     0.13       -        -          0.13       -   
               
Core diluted earnings per common share* $   0.33   $   0.37   $   0.40     $   1.57   $   1.52  
               
               
Core net income, as calculated above $   9,629   $   10,903   $   11,591     $   45,767   $   43,952  
Average assets     6,243,686       6,239,321       6,003,125         6,217,746       5,913,534  
Average equity     537,201       536,468       512,317         530,300       496,820  
Core return on average assets**   0.62 %   0.70 %   0.77 %     0.74 %   0.74 %
Core return on average equity**   7.17 %   8.13 %   9.05 %     8.63 %   8.85 %
               
               
* Core diluted earnings per common share may not foot due to rounding.                
** Ratios are calculated on an annualized basis.                
               

 

       
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
BEFORE PROVISION FOR LOAN LOSSES and INCOME TAXES
(Dollars in thousands, except per share data)
(Unaudited)
       
  Three Months Ended   Twelve Months Ended
  December 31, September 30, December 31,   December 31, December 31,
    2017   2017     2016       2017     2016  
   
             
GAAP income before income taxes $   13,650 $   15,470   $   22,402     $   66,134   $   106,019  
             
Provision for loan losses     6,595     3,266       -         9,861       -  
Net loss from fair value adjustments     631     1,297       509         3,465       3,434  
Net loss (gain) on sale of securities     -     186       839         186       (1,524 )
Gain from life insurance proceeds     -     (238 )     (2 )       (1,405 )     (460 )
Net gain on sale of buildings     -     -       (14,204 )       -       (48,018 )
Prepayment penalty on borrowings     -     -       8,274         -       10,356  
             
Core income before provision for loan losses and income taxes $   20,876 $   19,981   $   17,818     $   78,241   $   69,807  
             

 

     
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS'
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
     
  December 31, December 31,
(Dollars in thousands)   2017     2016  
Total Equity $   532,608   $   513,853  
Less:    
      Goodwill     (16,127 )     (16,127 )
      Intangible deferred tax liabilities     291       389  
         Tangible Stockholders' Common Equity $   516,772   $   498,115  
     
Total Assets $   6,299,274   $   6,058,487  
Less:    
     Goodwill     (16,127 )     (16,127 )
     Intangible deferred tax liabilities     291       389  
         Tangible Assets $   6,283,438   $   6,042,749  
     
Tangible Stockholders' Common Equity to Tangible Assets   8.22 %   8.24 %
             

 

Susan K. Cullen
Senior Executive Vice President, Treasurer and Chief Financial Officer                        
Flushing Financial Corporation
(718) 961-5400

 

 

 

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