0001558370-22-011071.txt : 20220727 0001558370-22-011071.hdr.sgml : 20220727 20220726174515 ACCESSION NUMBER: 0001558370-22-011071 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20220726 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220727 DATE AS OF CHANGE: 20220726 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLUSHING FINANCIAL CORP CENTRAL INDEX KEY: 0000923139 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 113209278 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33013 FILM NUMBER: 221108022 BUSINESS ADDRESS: STREET 1: 220 RXR PLAZA CITY: UNIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 718-961-5400 MAIL ADDRESS: STREET 1: 220 RXR PLAZA CITY: UNIONDALE STATE: NY ZIP: 11556 8-K 1 ffic-20220726x8k.htm 8-K
0000923139false00009231392022-07-262022-07-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 26, 2022

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

(I.R.S. Employer Identification No.)

220 RXR PlazaUniondaleNY 11556

(Address of principal executive offices)

(718961-5400

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

FFIC

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 26, 2022, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated July 26, 2022

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

usa

FLUSHING FINANCIAL CORPORATION

    

Date: July 26, 2022

By: 

/s/ SUSAN K. CULLEN

Susan K. Cullen

Senior Executive Vice President and Chief Financial Officer

EX-99 2 ffic-20220726xex99.htm EX-99.1 Flushing Financial 2Q22 Earnings Release

Exhibit 99.1

0

Graphic

John R. Buran, President and CEO Commentary

Flushing Financial Corporation Reports 2Q22 GAAP EPS of $0.81 and Core EPS of $0.70

Record Loan Closings; Loan Growth with Stable NIM QoQ

UNIONDALE, N.Y., July 26, 2022 (GLOBE NEWSWIRE) - The Company reported second quarter 2022 GAAP EPS of $0.81, up 32.8% YoY, with a ROAA of 1.22%, and ROAE of 15.0%. Core 2Q22 EPS was $0.70, a decrease of 4.1% YoY, with a ROAA of 1.05% and the ROAE of 12.90%.

“Record loan closings of $504 million drove a 3.4% YoY increase in net loans, excluding PPP. Core loan yields increased 11 bps QoQ compared to only 7 bps for core deposit costs. 2Q22 was the first quarter since 2020  where yields on loan closings exceeded yields on satisfactions excluding PPP. Despite our liability sensitive balance sheet, the NIM was stable QoQ, however, the pace and magnitude of rate increases this cycle are stronger than anticipated and will likely pressure the NIM going forward. A partial offset to this pressure is $986 million of loans that reprice within the quarter and an additional $1.3 billion of loans that are scheduled to reprice or mature through the end of 2023. The Bank continues to grow noninterest bearing deposits, which are now over 16% of average deposits, up from 14.2% a year ago. We opened our 25th branch this quarter in Elmhurst further expanding our footprint in the Asian community. Given the low risk nature of our loan portfolio (>87% real estate based, average LTVs of <38%, and strong debt coverage ratios), the Company is well positioned to handle any potential economic downturn affecting credit markets.”

- John R. Buran, President and CEO

NIM Stable QoQ; Loan Pipeline Remains Strong. Record net interest income of $64.7 million increased 6.0% YoY and 2.0% QoQ. NIM FTE was 3.35% in 2Q22 compared to 3.36% in 1Q22 and 3.14% a year ago. Core NIM FTE increased by 19 bps to 3.33% YoY and 2 bps QoQ. Period end net loans, excluding PPP, increased 2.6% QoQ, with commercial business and other loans growing 3.2%. Record loan closings, excluding PPP, were up 63% YoY and repayment speeds remained elevated. The Company continued to benefit from the merger disruption in our markets as we have hired ­42 people, including 18 revenue producers since March 31, 2021 from institutions involved with mergers.

Returned 61% of Earnings in 2Q22; Tangible Book Value Per Share Increased 6% YoY. The Company repurchased 387,689 shares of common stock at an average price of $22.01 during the quarter. Book value and tangible book value per share were $22.38 and $21.71, respectively, while TCE/TA1 was 7.82% at June 30, 2022 compared to 8.05% at March 31, 2022.

1 See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP
Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”

Key Financial Metrics2

2Q22

1Q22

4Q21

3Q21

2Q21

GAAP:

EPS

$0.81

$0.58

$0.58

$0.81

$0.61

ROAA (%)

1.22

0.91

0.89

1.26

0.93

ROAE (%)

15.00

10.83

10.77

15.42

11.95

NIM FTE3 (%)

3.35

3.36

3.29

3.34

3.14

Core:

EPS

$0.70

$0.61

$0.67

$0.88

$0.73

ROAA (%)

1.05

0.94

1.04

1.38

1.11

ROAE (%)

12.90

11.27

12.49

16.88

14.27

Core NIM FTE (%)

3.33

3.31

3.21

3.27

3.14

Efficiency Ratio (%)

52.3

58.9

58.7

52.3

53.4

Credit Quality:

NPAs/Loans&REO (%)

0.72

0.21

0.23

0.31

0.26

ACLs/Loans (%)

0.58

0.57

0.56

0.55

0.64

ACLs/NPLs (%)

141.06

266.12

248.66

179.86

242.55

NCOs/Avg Loans (%)

(0.03)

0.06

-

(0.04)

0.05

Balance Sheet:

Avg Loans ($B)

$6.6

$6.6

$6.6

$6.6

$6.7

Avg Dep ($B)

$6.4

$6.4

$6.5

$6.4

$6.5

Book Value/Share

$22.38

$22.26

$22.26

$21.78

$21.16

Tangible BV/Share

$21.71

$21.61

$21.61

$21.13

$20.51

TCE/TA (%)

7.82

8.05

8.22

8.04

7.80

1 Tangible Common Equity (“TCE”)/Total Assets (“TA”) 2 See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.” 3 Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54001


Graphic

2Q22 Highlights

Net interest income increased 2.0% QoQ (as average earning assets increased 2.2% QoQ), and 6.0% YoY to a record $64.7 million; Core net interest income grew 3.0% QoQ and 5.4% YoY to a record $64.4 million
Net interest margin FTE decreased 1 bps QoQ but increased 21 bps YoY to 3.35%; Core net interest margin FTE increased 2 bps QoQ and 19 bps YoY to 3.33%; Core NIM expansion QoQ was primarily driven by loan yields increasing greater than deposit costs
Excluding PPP, period end net loans increased 2.6% QoQ and 3.4% YoY; loan closings were a record $503.8 million in 2Q22, up 53.0% QoQ and ­­63.0% YoY
Average deposits, including mortgage escrow, increased 0.5% QoQ, but decreased 1.1% YoY to $6.4 billion, with core deposits comprising 87.3% of total average deposits; record average noninterest bearing deposits were up 13.1% YoY
Loan pipeline increased 34.7% YoY to $582.6 million
Provision for credit losses was $1.6 million in 2Q22 compared to a benefit for credit losses of $1.6 million in 2Q21; net recoveries were $0.5 million in 2Q22 compared to net charge-offs of $0.9 million in 2Q21
NPAs increased to $48.9 million, up from $14.1 million at 1Q22 and $17.6 million at 2Q21. The increase in NPAs primarily relates to a previously identified $24.1 million criticized investment security and related loan (combined LTV of 63%) and two commercial relationships (one was resolved after quarter end)
Tangible Common Equity to Tangible Assets was 7.82% down from 8.05% at 1Q22; the change in AOCI (primarily from rising rates) impacted this ratio by an additional 19 bps in 2Q22 compared to 1Q22
Repurchased 387,689 shares at an average price of $22.01; dividends and share repurchases were 61% of net income in 2Q22

1 See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP
Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”

Income Statement Highlights

YoY

QoQ

($000s, except EPS)

2Q22

1Q22

4Q21

3Q21

2Q21

Change

Change

Net Interest Income

$64,730

$63,479

$62,674

$63,364

$61,039

6.0

%

2.0

%

Provision (Benefit) for Credit Losses

1,590

1,358

761

(6,927)

(1,598)

(199.5)

17.1

Noninterest Income (Loss)

7,353

1,313

(280)

866

(3,210)

(329.1)

460.0

Noninterest Expense

35,522

38,794

38,807

36,345

34,011

4.4

(8.4)

Income Before Income Taxes

34,971

24,640

22,826

34,812

25,416

37.6

41.9

Provision for Income Taxes

9,936

6,421

4,743

9,399

6,158

61.4

54.7

Net Income

$25,035

$18,219

$18,083

$25,413

$19,258

30.0

37.4

Diluted EPS

$0.81

$0.58

$0.58

$0.81

$0.61

32.8

39.7

Avg. Diluted Shares (000s)

30,937

31,254

31,353

31,567

31,677

(2.3)

(1.0)

Core Net Income1

$21,518

$18,969

$20,968

$27,829

$22,994

(6.4)

13.4

Core EPS1

$0.70

$0.61

$0.67

$0.88

$0.73

(4.1)

14.8

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $64.7 million in 2Q22 (an increase of 6.0% YoY, and 2.0% QoQ), compared to $63.5 million in 1Q22, $62.7 million in 4Q21, $63.4 million in 3Q21, and $61.0 million in 2Q21.

Net interest margin, FTE (“NIM”) of 3.35% increased 21 bps YoY, but decreased 1 bp QoQ; PPP loans caused a 2 bps, 3 bps, 3 bps, and 2 bps positive impact on the NIM in 2Q22, 1Q22, 4Q21, and 3Q21, respectively, and were neutral in 2Q21
Prepayment penalty income from loans and securities, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $2.6 million (13 bps to the NIM) in 2Q22 compared to $2.6 million (14 bps) in 1Q22, $3.1 million (16 bps) in 4Q21, $3.4 million (19 bps) in 3Q21, and $1.9 million (10 bps) in 2Q21
Excluding the items in the previous bullet, net interest margin was 3.22% in 2Q22 and in 1Q22, 3.13% in 4Q21, 3.15% in 3Q21, and 3.04% in 2Q21, or an increase of 17 bps YoY and stable QoQ
Net PPP loan fees were $0.5 million in 2Q22, $0.9 million in 1Q22, $1.2 million in 4Q21, $1.3 million in 3Q21, and $1.2 million in 2Q21

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54002


Graphic

The Company recorded a provision for credit losses of $1.6 million in 2Q22, $1.4 million in 1Q22, and $0.8 million in 4Q21 compared to a benefit for credit losses of $6.9 million in 3Q21 and $1.6 million in 2Q21.

2Q22 provision for credit losses of $1.6 million was primarily due to loan growth
Net charge-offs (recoveries) were $(0.5) million in 2Q22 ((3) bps of average loans), $0.9 million in 1Q22 (6 bps of average loans), $(29) thousand in 4Q21 (negligible as compared to average loans), $(0.6) million in 3Q21 ((4) bps of average loans), and $0.9 million in 2Q21 (5 bps of average loans)

Noninterest income (loss) was $7.4 million in 2Q22, $1.3 million in 1Q22, $(0.3) million in 4Q21, $0.9 million in 3Q21, and $(3.2) million in 2Q21.

Noninterest income included net gains (losses) from fair value adjustments of $2.5 million in 2Q22 or $0.06 per share, net of tax, $(1.8) million in 1Q22 or $(0.04) per share, net of tax, $(5.1) million in 4Q21 or $(0.13) per share, net of tax, $(2.3) million in 3Q21 or $(0.05) per share, net of tax, and $(6.5) million or $(0.15) per share, net of tax in 2Q21
Life insurance proceeds were $1.5 million ($0.05 per share) in 2Q22
Absent all above items and other immaterial adjustments, core noninterest income was $3.3 million in 2Q22, up 2.1% YoY, and 5.2% QoQ
After a pilot program, the Company made the decision to suspend its agreement with NYDIG to offer bitcoin services; all pilot program customers have been notified and all accounts have been closed; the financial impact was immaterial
Included in 4Q21 core noninterest income was a one-time $2.0 million ($0.05 per share, net of tax) dividend received on retirement plan investments

Noninterest expense totaled $35.5 million in 2Q22 (an increase of 4.4% YoY, but a decrease of 8.4% QoQ) compared to $38.8 million in 1Q22, $38.8 million in 4Q21, $36.3 million in 3Q21, and $34.0 million in 2Q21.

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, net of tax) of increased compensation and benefits for all employees due to a record year of earnings in 2021 and employee performance through the pandemic
Noninterest expense included $17 thousand pre-tax merger benefit (<$0.01 per share, net of tax) in 4Q21, $2.1 million of pre-tax merger charges ($0.05 per share, net of tax) in 3Q21, and $0.5 million of pre-tax merger benefits ($(0.01) per share, net of tax) in 2Q21
Excluding the effects of the merger and other immaterial adjustments, core operating expenses were $35.4 million in 2Q22, up 3.0% YoY, but down 8.5% QoQ
The efficiency ratio was 52.3% in 2Q22, 58.9% in 1Q22, 58.7% in 4Q21, 52.3% in 3Q21, and 53.4% in 2Q21

The provision for income taxes was $9.9 million in 2Q22 compared to $6.4 million in 1Q22, $4.7 million in 4Q21, $9.4 million in 3Q21, and $6.2 million in 2Q21.

The effective tax rate was 28.4% in 2Q22, 26.1% in 1Q22, 20.8% in 4Q21, 27.0% in 3Q21, and 24.2% in 2Q21
The 2Q22 effective tax rate includes a loss of a certain state and city tax deductions and a resolution of certain examinations
The 4Q21 effective tax rate declined due to lower levels of taxable state income and higher percentage of permanent differences
The 2Q21 effective tax rate includes $0.8 million benefit from a state tax rate change; absent this benefit the effective tax rate would have been 27.2%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54003


Graphic

Balance Sheet, Credit Quality, and Capital Highlights

YoY

QoQ

2Q22

1Q22

4Q21

3Q21

2Q21

Change

Change

Average Loans And Deposits ($MM)

Loans

$6,640

$6,579

$6,558

$6,633

$6,687

(0.7)

%

0.9

%

Deposits

6,441

6,410

6,459

6,408

6,511

(1.1)

0.5

Credit Quality ($000s)

Nonperforming Loans

$27,948

$14,066

$14,934

$20,217

$17,592

58.9

%

98.7

%

Nonperforming Assets

48,929

14,066

14,934

20,217

17,592

178.1

247.9

Criticized and Classified Loans

57,145

59,548

57,650

68,913

69,161

(17.4)

(4.0)

Criticized and Classified Assets

78,125

80,527

78,628

89,889

90,135

(13.3)

(3.0)

Allowance for Credit Losses/Loans (%)

0.58

0.57

0.56

0.55

0.64

(6)

bps

1

bp

Capital

Book Value/Share

$22.38

$22.26

$22.26

$21.78

$21.16

5.8

%

0.5

%

Tangible Book Value/Share

21.71

21.61

21.61

21.13

20.51

5.9

0.5

Tang. Common Equity/Tang. Assets (%)

7.82

8.05

8.22

8.04

7.80

2

bps

(23)

bps

Leverage Ratio (%)

8.91

9.05

8.98

8.83

8.50

41

(14)

Average loans were $6.6 billion, a decrease of 0.7% YoY, but up 0.9% QoQ.

Period end net loans, excluding PPP loans, totaled $6.7 billion, up 3.4% YoY and 2.6% QoQ
Total loan closings were a record $503.8 million in 2Q22, $329.3 million in 1Q22, $362.7 million in 4Q21, $243.9 million in 3Q21, and $324.4 million ($309.0 million excluding PPP) in 2Q21
The loan pipeline was $582.6 million at June 30, 2022, up 34.7% YoY, but down 12.2% from record levels QoQ
PPP loans held at the end of each quarter totaled $22.2 million at 2Q22, $43.2 million at 1Q22, $77.4 million at 4Q21, $130.8 million at 3Q21, and $197.3 million at 2Q21; forgiven PPP loans were $21.0 million in 2Q22, $34.1 million in 1Q22, $53.4 million in 4Q21, $66.5 million in 3Q21, and $69.2 million in 2Q21

Average Deposits totaled $6.4 billion, decreasing 1.1% YoY, but up 0.5% QoQ.

Average core deposits (non-CD deposits) increased to 87.3% of total average deposits (including escrow deposits) in 2Q22, compared to 84.0% a year ago
Average noninterest bearing deposits increased 13.1% YoY and 4.3% QoQ and comprised 16.2% of total average deposits (including escrow deposits) in 2Q22 compared to 14.2% a year ago

Credit Quality: Nonperforming loans held at the end of each quarter totaled $27.9 million at 2Q22, $14.1 million at 1Q22, $14.9 million at 4Q21, $20.2 million at 3Q21, and $17.6 million at 2Q21.

The $13.8 million QoQ increase in NPLs was primarily driven by three previously identified as criticized and classified commercial business credits (one resolved subsequent to quarter end)
Nonperforming assets totaled $48.9 million, up from $14.1 million at 1Q22 and $17.6 million at 2Q21; the increase in nonperforming assets primarily relates to a previously disclosed criticized investment security and loan totaling $24.1 million that has a combined LTV of 63%
Criticized and classified loans totaled $57.1 million at 2Q22 (85 bps of loans), $59.5 million at 1Q22 (90 bps of loans), $57.7 million at 4Q21 (87 bps of loans), $68.9 million at 3Q21 (104 bps of loans), and $69.2 million at 2Q21 (103 bps of loans)
Criticized and classified assets are composed of criticized and classified loans, as detailed above, plus one criticized investment security totaling $21.0 million in each quarter of 2Q22, 1Q22, 4Q21, and 3Q21
Loans classified as troubled debt restructured (TDR) totaled $14.8 million at 2Q22 compared to $15.1 million at 1Q22 and $15.5 million a year ago
Over 87% of gross loans are collateralized by real estate with an average loan-to-value ratio of <38% as of June 30, 2022
Allowance for credit losses were 0.58% of loans at 2Q22 compared to 0.57% at 1Q22 and 0.64% a year ago
Allowance for credit losses were 141.1% of nonperforming loans at 2Q22 compared to 266.1% at 1Q22 and 242.6% a year ago

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54004


Graphic

Capital: Book value per common share was $22.38 at 2Q22, up 0.5% QoQ and 5.8% YoY; tangible book value per common share, a non-GAAP measure, was $21.71 at 2Q22, up 0.5% QoQ and 5.9% YoY.

The Company paid a dividend of $0.22 per share and repurchased 387,689 shares at an average price of $22.01 in 2Q22
During the quarter, the Board of Directors authorized an increase of 1 million shares to the current share repurchase program; as of the end of 2Q22, 1,100,498 shares remain subject to repurchase under the authorized stock repurchase programs, which has no expiration or maximum dollar limit
Tangible common equity to tangible assets was 7.82% at 2Q22 compared to 8.05% at 1Q22 and 7.80% at 2Q21
The Company and the Bank remain well capitalized under all applicable regulatory requirements
The leverage ratio was 8.91% at 2Q22 compared to 9.05% at 1Q22 and 8.50% at 2Q21

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54005


Graphic

Conference Call Information And Third Quarter Earnings Release Date

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, July 27, 2022, at 9:30 AM (ET) to discuss the Company’s second quarter 2022 results and strategy.
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
Webcast: https://services.choruscall.com/links/ffic220727.html
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
Replay Access Code: 3593053
The conference call will be simultaneously webcast and archived

Third Quarter 2022 Earnings Release Date:

The Company plans to release Third Quarter 2022 financial results after the market close on October 25, 2022; followed by a conference call at 9:30 AM (ET) on October 26, 2022.

A detailed announcement will be issued prior to the third quarter’s close confirming the date and time of the earnings release.

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank’s experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company’s website at FlushingBank.com. Flushing Financial Corporation’s earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

#FF

Statistical Tables Follow -

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54006


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

At or for the three months ended

At or for the six months ended

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

(Dollars in thousands, except per share data)

    

2022

2022

2021

2021

2021

2022

    

2021

    

Performance Ratios (1)

 

 

 

 

  

 

 

 

Return on average assets

 

1.22

%  

 

0.91

%  

 

0.89

%  

1.26

%  

 

0.93

%  

 

1.06

%  

 

0.93

%

Return on average equity

 

15.00

 

10.83

 

10.77

15.42

 

11.95

 

12.91

 

12.11

 

Yield on average interest-earning assets (2)

 

3.85

 

3.77

 

3.77

3.84

 

3.69

 

3.81

 

3.73

 

Cost of average interest-bearing liabilities

 

0.60

 

0.50

 

0.58

0.61

 

0.66

 

0.55

 

0.67

 

Cost of funds

 

0.52

 

0.43

 

0.50

0.53

 

0.57

 

0.48

 

0.59

 

Net interest rate spread during period (2)

 

3.25

 

3.27

 

3.19

3.23

 

3.03

 

3.26

 

3.06

 

Net interest margin (2)

 

3.35

 

3.36

 

3.29

3.34

 

3.14

 

3.36

 

3.16

 

Noninterest expense to average assets

 

1.73

 

1.93

 

1.92

1.80

 

1.65

 

1.83

 

1.76

 

Efficiency ratio (3)

 

52.27

 

58.87

 

58.66

52.28

 

53.38

 

55.52

 

55.96

 

Average interest-earning assets to

average interest-bearing liabilities

 

1.22

X

 

1.22

X

 

1.22

X

1.21

X

 

1.19

X

 

1.22

X

 

1.19

X

Average Balances

 

 

 

 

 

 

 

Total loans, net

$

6,640,331

$

6,578,680

$

6,558,285

$

6,633,301

$

6,686,888

$

6,609,676

$

6,693,644

 

Total interest-earning assets

 

7,740,683

 

7,570,373

 

7,627,256

7,608,317

 

7,790,174

 

7,655,999

 

7,729,035

 

Total assets

 

8,211,763

 

8,049,470

 

8,090,701

8,072,918

 

8,263,553

 

8,131,065

 

8,205,954

 

Total due to depositors

 

5,298,855

 

5,336,983

 

5,397,802

5,406,423

 

5,495,936

 

5,317,814

 

5,430,158

 

Total interest-bearing liabilities

 

6,337,374

 

6,220,510

 

6,276,221

6,310,859

 

6,532,891

 

6,279,265

 

6,505,534

 

Stockholders' equity

 

667,456

 

673,012

 

671,474

659,288

 

644,690

 

670,219

 

632,238

 

Per Share Data

 

 

  

 

  

 

  

 

  

 

  

 

  

 

Book value per common share (4)

$

22.38

$

22.26

$

22.26

$

21.78

$

21.16

$

22.38

$

21.16

 

Tangible book value per common share (5)

$

21.71

$

21.61

$

21.61

$

21.13

$

20.51

$

21.71

$

20.51

 

Stockholders' Equity

 

 

  

 

  

 

  

 

  

 

  

 

  

 

Stockholders' equity

$

670,812

$

675,813

$

679,628

$

668,096

$

655,167

$

670,812

$

655,167

 

Tangible stockholders' equity

 

650,894

 

656,085

 

659,758

648,039

 

634,959

 

650,894

634,959

 

Consolidated Regulatory Capital Ratios

  

 

  

 

  

 

  

 

  

 

  

  

Tier 1 capital

$

739,776

$

731,536

$

726,174

$

711,276

$

697,591

$

739,776

$

697,591

Common equity Tier 1 capital

 

686,258

 

675,434

 

671,494

661,340

 

649,367

686,258

649,367

Total risk-based capital

 

903,047

 

892,861

 

885,469

832,255

 

823,494

903,047

823,494

Risk Weighted Assets

6,522,710

6,232,020

6,182,095

6,194,207

6,344,076

6,522,710

6,344,076

Tier 1 leverage capital

(well capitalized = 5%)

 

8.91

%  

 

9.05

%  

 

8.98

%  

8.83

%  

 

8.50

%  

8.91

%  

8.50

%  

Common equity Tier 1 risk-based capital (well capitalized = 6.5%)

 

10.52

 

10.84

 

10.86

10.68

 

10.24

10.52

10.24

Tier 1 risk-based capital

(well capitalized = 8.0%)

 

11.34

 

11.74

 

11.75

11.48

 

11.00

11.34

11.00

Total risk-based capital

(well capitalized = 10.0%)

 

13.84

 

14.33

 

14.32

13.44

 

12.98

13.84

12.98

Capital Ratios

 

  

 

  

 

  

  

 

  

  

  

Average equity to average assets

 

8.13

%  

 

8.36

%  

 

8.30

%  

8.17

%  

 

7.80

%  

8.24

%  

7.70

%  

Equity to total assets

 

8.04

 

8.27

 

8.45

8.27

 

8.03

8.04

8.03

Tangible common equity to tangible assets (6)

 

7.82

 

8.05

 

8.22

8.04

 

7.80

7.82

7.80

Asset Quality

 

  

 

  

 

  

  

 

  

  

  

Nonaccrual loans (7)

$

27,848

$

14,066

$

14,933

$

18,292

$

17,391

$

27,848

$

17,391

Nonperforming loans

 

27,948

 

14,066

 

14,933

20,217

 

17,592

27,948

17,592

Nonperforming assets

 

48,929

 

14,066

 

14,933

20,217

 

17,592

48,929

17,592

Net charge-offs (recoveries)

 

(501)

 

935

 

(29)

(619)

 

902

434

3,767

Asset Quality Ratios

 

  

 

  

 

  

  

 

  

  

  

Nonperforming loans to gross loans

 

0.41

%  

 

0.21

%  

 

0.23

%  

0.31

%  

 

0.26

%  

0.41

%  

0.26

%  

Nonperforming assets to total assets

 

0.59

 

0.17

 

0.19

0.25

 

0.22

0.59

0.22

Allowance for credit losses to gross loans

 

0.58

 

0.57

 

0.56

0.55

 

0.64

0.58

0.64

Allowance for credit losses to

nonperforming assets

 

80.57

 

266.12

 

248.66

179.86

 

242.55

80.57

242.55

Allowance for credit losses to

nonperforming loans

 

141.06

 

266.12

 

248.66

179.86

 

242.55

141.06

242.55

Net charge-offs (recoveries) to average loans

(0.03)

0.06

(0.04)

0.05

0.01

0.11

Full-service customer facilities

 

25

 

24

 

24

24

 

25

25

25

(See footnotes on next page)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54007


Graphic


(1) Ratios are presented on an annualized basis, where appropriate.

(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing noninterest expense (excluding merger expense, OREO expense, prepayment penalty on borrowings, the net gain/loss from the sale of OREO and net amortization of purchase accounting adjustments) by the total of net interest income (excluding net gains and losses from fair value adjustments on qualifying hedges and net amortization of purchase accounting adjustments) and noninterest income (excluding life insurance proceeds, net gains and losses from the sale or disposition of securities, assets and fair value adjustments).

(4) Calculated by dividing stockholders’ equity by shares outstanding.

(5) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less intangible assets (goodwill, net 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.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54008


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

For the three months ended

For the six months ended

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

(In thousands, except per share data)

2022

2022

2021

2021

2021

2022

2021

Interest and Dividend Income

  

Interest and fees on loans

$

69,192

$

67,516

$

68,113

$

69,198

$

67,999

$

136,708

$

137,020

Interest and dividends on securities:

 

 

 

 

 

 

 

Interest

 

4,929

 

3,745

 

3,536

 

3,706

 

3,685

 

8,674

 

6,757

Dividends

 

11

 

8

 

7

 

7

 

7

 

19

 

15

Other interest income

 

159

 

51

 

74

 

42

 

51

 

210

 

87

Total interest and dividend income

 

74,291

 

71,320

 

71,730

 

72,953

 

71,742

 

145,611

 

143,879

Interest Expense

 

 

 

 

 

 

 

Deposits

 

4,686

 

3,408

 

3,975

 

4,705

 

5,539

 

8,094

 

11,644

Other interest expense

 

4,875

 

4,433

 

5,081

 

4,884

 

5,164

 

9,308

 

10,304

Total interest expense

 

9,561

 

7,841

 

9,056

 

9,589

 

10,703

 

17,402

 

21,948

Net Interest Income

 

64,730

 

63,479

 

62,674

 

63,364

 

61,039

 

128,209

 

121,931

Provision (benefit) for credit losses

 

1,590

 

1,358

 

761

 

(6,927)

 

(1,598)

 

2,948

 

1,222

Net Interest Income After Provision (Benefit)

for Credit Losses

 

63,140

 

62,121

 

61,913

 

70,291

 

62,637

 

125,261

 

120,709

Noninterest Income (Loss)

 

 

 

 

 

 

 

Banking services fee income

 

1,166

 

1,374

 

1,142

 

865

 

1,233

 

2,540

 

3,958

Net gain (loss) on sale of securities

 

 

 

 

(10)

 

123

 

 

123

Net gain on sale of loans

 

73

 

 

46

 

131

 

127

 

73

 

158

Net gain on disposition of assets

 

 

 

 

 

 

 

621

Net gain (loss) from fair value adjustments

 

2,533

 

(1,809)

 

(5,140)

 

(2,289)

 

(6,548)

 

724

 

(5,566)

Federal Home Loan Bank of New York

stock dividends

 

407

 

397

 

417

 

491

 

500

 

804

 

1,189

Life insurance proceeds

 

1,536

 

 

 

 

 

1,536

 

Bank owned life insurance

 

1,115

 

1,114

 

1,023

 

1,015

 

1,009

 

2,229

 

2,006

Other income

 

523

 

237

 

2,232

 

663

 

346

 

760

 

612

Total noninterest income (loss)

 

7,353

 

1,313

 

(280)

 

866

 

(3,210)

 

8,666

 

3,101

Noninterest Expense

 

 

 

 

 

 

 

Salaries and employee benefits

 

21,109

 

23,649

 

25,223

 

20,544

 

19,879

 

44,758

 

42,543

Occupancy and equipment

 

3,760

 

3,604

 

3,579

 

3,534

 

3,522

 

7,364

 

6,889

Professional services

 

2,285

 

2,222

 

1,152

 

1,899

 

1,988

 

4,507

 

4,388

FDIC deposit insurance

 

615

 

420

 

391

 

618

 

729

 

1,035

 

1,942

Data processing

 

1,383

 

1,424

 

1,757

 

1,759

 

1,419

 

2,807

 

3,528

Depreciation and amortization

 

1,447

 

1,460

 

1,521

 

1,627

 

1,638

 

2,907

 

3,277

Other real estate owned/foreclosure expense

 

32

 

84

 

129

 

182

 

22

 

116

 

12

Other operating expenses

 

4,891

 

5,931

 

5,055

 

6,182

 

4,814

 

10,822

 

9,591

Total noninterest expense

 

35,522

 

38,794

 

38,807

 

36,345

 

34,011

 

74,316

 

72,170

Income Before Provision for Income Taxes

 

34,971

 

24,640

 

22,826

 

34,812

 

25,416

 

59,611

 

51,640

Provision for Income Taxes

 

9,936

 

6,421

 

4,743

 

9,399

 

6,158

 

16,357

 

13,343

Net Income

$

25,035

$

18,219

$

18,083

$

25,413

$

19,258

$

43,254

$

38,297

Basic earnings per common share

$

0.81

$

0.58

$

0.58

$

0.81

$

0.61

$

1.39

$

1.21

Diluted earnings per common share

$

0.81

$

0.58

$

0.58

$

0.81

$

0.61

$

1.39

$

1.21

Dividends per common share

$

0.22

$

0.22

$

0.21

$

0.21

$

0.21

$

0.44

$

0.42

Basic average shares

 

30,937

 

31,254

 

31,353

 

31,567

 

31,677

 

31,095

 

31,641

Diluted average shares

 

30,937

 

31,254

 

31,353

 

31,567

 

31,677

 

31,095

 

31,641

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54009


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

June 30, 

    

March 31,

    

December 31,

    

September 30,

    

June 30, 

(Dollars in thousands)

2022

2022

2021

2021

2021

ASSETS

 

  

 

  

 

  

 

  

 

  

Cash and due from banks

$

137,026

$

186,407

$

81,723

$

178,598

$

145,971

Securities held-to-maturity:

 

 

 

 

 

Mortgage-backed securities

 

7,885

 

7,890

 

7,894

 

7,899

 

7,904

Other securities

 

66,230

 

66,327

 

49,974

 

49,989

 

49,986

Securities available for sale:

 

 

 

Mortgage-backed securities

 

510,934

 

553,828

 

572,184

 

584,145

 

596,661

Other securities

 

346,720

 

286,041

 

205,052

 

212,654

 

224,784

Loans

6,760,393

6,607,264

6,638,105

6,630,354

6,718,806

Allowance for credit losses

 

(39,424)

 

(37,433)

 

(37,135)

 

(36,363)

 

(42,670)

Net loans

 

6,720,969

 

6,569,831

 

6,600,970

 

6,593,991

 

6,676,136

Interest and dividends receivable

 

38,811

 

37,308

 

38,698

 

40,912

 

43,803

Bank premises and equipment, net

 

22,285

 

22,752

 

23,338

 

24,018

 

26,438

Federal Home Loan Bank of New York stock

 

50,017

 

33,891

 

35,937

 

36,158

 

41,630

Bank owned life insurance

 

211,220

 

211,867

 

210,754

 

184,730

 

183,715

Goodwill

 

17,636

 

17,636

 

17,636

 

17,636

 

17,636

Core deposit intangibles

2,282

2,420

2,562

2,708

2,859

Right of use asset

 

46,687

 

48,475

 

50,200

 

50,155

 

51,972

Other assets

 

160,885

 

125,160

 

148,989

 

93,741

 

89,850

Total assets

$

8,339,587

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

LIABILITIES

 

  

 

  

 

  

 

  

 

  

Deposits

$

6,350,000

$

6,373,400

$

6,333,532

$

6,421,391

$

6,298,790

Mortgagors' escrow deposits

57,577

79,495

 

51,913

 

67,207

 

58,230

Borrowed funds

 

1,089,621

 

877,122

 

815,544

 

752,925

 

971,827

Operating lease liability

 

50,346

 

52,292

 

54,155

 

54,239

 

56,151

Other liabilities

 

121,231

 

111,711

 

111,139

 

113,476

 

119,180

Total liabilities

 

7,668,775

 

7,494,020

 

7,366,283

 

7,409,238

 

7,504,178

STOCKHOLDERS' EQUITY

 

  

 

  

 

  

 

  

 

  

Preferred stock (5,000,000 shares authorized; none issued)

 

 

 

 

 

Common stock ($0.01 par value; 100,000,000 shares authorized)

 

341

 

341

 

341

 

341

 

341

Additional paid-in capital

 

262,860

 

261,837

 

263,375

 

262,009

 

260,958

Treasury stock

 

(88,342)

 

(79,834)

 

(75,293)

 

(71,738)

 

(65,335)

Retained earnings

 

527,217

 

508,973

 

497,889

 

486,418

 

467,620

Accumulated other comprehensive loss, net of taxes

 

(31,264)

 

(15,504)

 

(6,684)

 

(8,934)

 

(8,417)

Total stockholders' equity

 

670,812

 

675,813

 

679,628

 

668,096

 

655,167

Total liabilities and stockholders' equity

$

8,339,587

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

(In thousands)

Issued shares

34,088

34,088

34,088

34,088

34,088

Outstanding shares

29,980

30,367

30,526

30,676

30,962

Treasury shares

4,108

3,721

3,561

3,412

3,126

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540010


Graphic

 

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Unaudited)

For the three months ended

For the six months ended

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

(In thousands)

2022

2022

2021

2021

2021

2022

2021

Interest-earning Assets:

 

  

  

  

  

  

  

  

Mortgage loans, net

$

5,178,029

$

5,152,070

$

5,140,233

$

5,158,213

$

5,130,400

$

5,165,121

$

5,143,117

Other loans, net

 

1,462,302

 

1,426,610

 

1,418,052

 

1,475,088

 

1,556,488

 

1,444,555

 

1,550,527

Total loans, net

 

6,640,331

 

6,578,680

 

6,558,285

 

6,633,301

 

6,686,888

 

6,609,676

 

6,693,644

Taxable securities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

594,923

 

580,670

 

595,538

 

590,732

 

578,134

 

587,836

 

506,424

Other securities

 

333,158

 

226,744

 

207,482

 

217,763

 

232,020

 

280,245

 

266,234

Total taxable securities

 

928,081

 

807,414

 

803,020

 

808,495

 

810,154

 

868,081

 

772,658

Tax-exempt securities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Other securities

 

67,315

 

57,611

 

50,834

 

50,832

 

50,830

 

62,490

 

50,829

Total tax-exempt securities

 

67,315

 

57,611

 

50,834

 

50,832

 

50,830

 

62,490

 

50,829

Interest-earning deposits and

federal funds sold

 

104,956

 

126,668

 

215,117

 

115,689

 

242,302

 

115,752

 

211,904

Total interest-earning assets

 

7,740,683

 

7,570,373

 

7,627,256

 

7,608,317

 

7,790,174

 

7,655,999

 

7,729,035

Other assets

 

471,080

 

479,097

 

463,445

 

464,601

 

473,379

 

475,066

 

476,919

Total assets

$

8,211,763

$

8,049,470

$

8,090,701

$

8,072,918

$

8,263,553

$

8,131,065

$

8,205,954

Interest-bearing Liabilities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Deposits:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Savings accounts

$

156,785

$

156,592

$

154,471

$

153,120

$

153,113

$

156,689

$

161,549

NOW accounts

 

2,089,851

 

2,036,914

 

2,115,619

 

2,107,866

 

2,255,581

 

2,063,529

 

2,220,677

Money market accounts

 

2,231,743

 

2,253,630

 

2,177,928

 

2,107,473

 

2,043,257

 

2,242,626

 

1,974,781

Certificate of deposit accounts

 

820,476

 

889,847

 

949,784

 

1,037,964

 

1,043,985

 

854,970

 

1,073,151

Total due to depositors

 

5,298,855

 

5,336,983

 

5,397,802

 

5,406,423

 

5,495,936

 

5,317,814

 

5,430,158

Mortgagors' escrow accounts

 

97,496

 

71,509

 

84,617

 

68,562

 

91,545

 

84,574

 

78,531

Total interest-bearing deposits

 

5,396,351

 

5,408,492

 

5,482,419

 

5,474,985

 

5,587,481

 

5,402,388

 

5,508,689

Borrowings

 

941,023

 

812,018

 

793,802

 

835,874

 

945,410

 

876,877

 

996,845

Total interest-bearing liabilities

 

6,337,374

 

6,220,510

 

6,276,221

 

6,310,859

 

6,532,891

 

6,279,265

 

6,505,534

Noninterest-bearing demand deposits

 

1,044,553

 

1,001,571

 

976,803

 

933,443

 

923,220

 

1,023,181

 

889,821

Other liabilities

 

162,380

 

154,377

 

166,203

 

169,328

 

162,752

 

158,400

 

178,361

Total liabilities

 

7,544,307

 

7,376,458

 

7,419,227

 

7,413,630

 

7,618,863

 

7,460,846

 

7,573,716

Equity

 

667,456

 

673,012

 

671,474

 

659,288

 

644,690

 

670,219

 

632,238

Total liabilities and equity

$

8,211,763

$

8,049,470

$

8,090,701

$

8,072,918

$

8,263,553

$

8,131,065

$

8,205,954

Net interest-earning assets

$

1,403,309

$

1,349,863

$

1,351,035

$

1,297,458

$

1,257,283

$

1,376,734

$

1,223,501

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540011


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

NET INTEREST INCOME AND NET INTEREST MARGIN

(Unaudited)

For the three months ended

For the six months ended

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

(Dollars in thousands)

2022

2022

2021

2021

2021

2022

2021

Interest Income:

 

  

  

  

  

  

  

  

Mortgage loans, net

$

54,775

$

53,970

$

54,260

$

55,114

$

52,987

$

108,745

$

108,206

Other loans, net

 

14,417

 

13,546

 

13,853

 

14,084

 

15,012

 

27,963

 

28,814

Total loans, net

 

69,192

 

67,516

 

68,113

 

69,198

 

67,999

 

136,708

 

137,020

Taxable securities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

2,356

 

2,167

 

2,125

 

2,279

 

2,233

 

4,523

 

3,931

Other securities

 

2,090

 

1,119

 

993

 

1,008

 

1,037

 

3,209

 

2,000

Total taxable securities

 

4,446

 

3,286

 

3,118

 

3,287

 

3,270

 

7,732

 

5,931

Tax-exempt securities:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Other securities

 

625

 

591

 

538

 

539

 

535

 

1,216

 

1,065

Total tax-exempt securities

 

625

 

591

 

538

 

539

 

535

 

1,216

 

1,065

Interest-earning deposits and federal funds sold

 

159

 

51

 

74

 

42

 

51

 

210

 

87

Total interest-earning assets

 

74,422

 

71,444

 

71,843

 

73,066

 

71,855

 

145,866

 

144,103

Interest Expense:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Deposits:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Savings accounts

$

50

$

49

$

53

$

61

$

66

$

99

$

141

NOW accounts

 

1,405

 

793

 

1,021

 

1,227

 

1,499

 

2,198

 

3,205

Money market accounts

 

1,952

 

1,275

 

1,428

 

1,683

 

2,060

 

3,227

 

4,160

Certificate of deposit accounts

 

1,273

 

1,289

 

1,471

 

1,734

 

1,913

 

2,562

 

4,135

Total due to depositors

 

4,680

 

3,406

 

3,973

 

4,705

 

5,538

 

8,086

 

11,641

Mortgagors' escrow accounts

 

6

 

2

 

2

 

 

1

 

8

 

3

Total interest-bearing deposits

 

4,686

 

3,408

 

3,975

 

4,705

 

5,539

 

8,094

 

11,644

Borrowings

 

4,875

 

4,433

 

5,081

 

4,884

 

5,164

 

9,308

 

10,304

Total interest-bearing liabilities

 

9,561

 

7,841

 

9,056

 

9,589

 

10,703

 

17,402

 

21,948

Net interest income- tax equivalent

$

64,861

$

63,603

$

62,787

$

63,477

$

61,152

$

128,464

$

122,155

Included in net interest income above:

Prepayment penalties received on loans and securities and net of reversals and recovered interest

from nonaccrual loans

$

2,281

$

1,716

$

1,497

$

2,136

$

2,046

$

3,997

$

2,993

Net gains/(losses) from fair value adjustments on qualifying hedges included in loan interest income

(60)

 

(129)

 

1,122

 

194

 

(664)

 

(189)

 

763

Purchase accounting adjustments

367

 

1,058

 

462

 

1,100

 

565

 

1,425

 

1,487

Interest-earning Assets Yields:

 

  

  

  

  

  

  

  

Mortgage loans, net

4.23

%  

4.19

%  

4.22

%  

4.27

%  

4.13

%  

4.21

%  

4.21

%  

Other loans, net

 

3.94

 

3.80

 

3.91

 

3.82

 

3.86

 

3.87

 

3.72

Total loans, net

 

4.17

 

4.11

 

4.15

 

4.17

 

4.07

 

4.14

 

4.09

Taxable securities:

 

  

 

  

  

  

  

 

  

  

Mortgage-backed securities

 

1.58

 

1.49

 

1.43

 

1.54

 

1.54

 

1.54

 

1.55

Other securities

 

2.51

 

1.97

 

1.91

 

1.85

 

1.79

 

2.29

 

1.50

Total taxable securities

 

1.92

 

1.63

 

1.55

 

1.63

 

1.61

 

1.78

 

1.54

Tax-exempt securities: (1)

 

  

 

  

  

  

  

 

  

  

Other securities

 

3.71

 

4.10

 

4.23

 

4.24

 

4.21

 

3.89

 

4.19

Total tax-exempt securities

 

3.71

 

4.10

 

4.23

 

4.24

 

4.21

 

3.89

 

4.19

Interest-earning deposits and federal funds sold

 

0.61

 

0.16

 

0.14

 

0.15

 

0.08

 

0.36

 

0.08

Total interest-earning assets

 

3.85

%  

3.77

%  

3.77

%  

3.84

%  

3.69

%  

 

3.81

%  

3.73

%  

Interest-bearing Liabilities Yields:

 

  

 

  

  

 

  

 

  

 

  

 

  

Deposits:

 

  

 

  

  

 

  

 

  

 

  

 

  

Savings accounts

0.13

%  

0.13

%  

0.14

%  

0.16

%  

0.17

%  

 

0.13

%  

0.17

%  

NOW accounts

 

0.27

 

0.16

 

0.19

 

0.23

 

0.27

 

0.21

 

0.29

Money market accounts

 

0.35

 

0.23

 

0.26

 

0.32

 

0.40

 

0.29

 

0.42

Certificate of deposit accounts

 

0.62

 

0.58

 

0.62

 

0.67

 

0.73

 

0.60

 

0.77

Total due to depositors

 

0.35

 

0.26

 

0.29

 

0.35

 

0.40

 

0.30

 

0.43

Mortgagors' escrow accounts

 

0.02

 

0.01

 

0.01

 

 

 

0.02

 

0.01

Total interest-bearing deposits

 

0.35

 

0.25

 

0.29

 

0.34

 

0.40

 

0.30

 

0.42

Borrowings

 

2.07

 

2.18

 

2.56

 

2.34

 

2.18

 

2.12

 

2.07

Total interest-bearing liabilities

 

0.60

%  

0.50

%  

0.58

%  

0.61

%  

0.66

%  

 

0.55

%  

0.67

%  

Net interest rate spread (tax equivalent)

3.25

%  

3.27

%  

3.19

%  

3.23

%  

3.03

%  

 

3.26

%  

3.06

%  

Net interest margin (tax equivalent)

3.35

%  

3.36

%  

3.29

%  

3.34

%  

3.14

%  

 

3.36

%  

3.16

%  

Ratio of interest-earning assets to interest-bearing liabilities

1.22

X

1.22

X

1.22

X

1.21

X

1.19

X

 

1.22

X

1.19

X


(1) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540012


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition

June 2022 vs.

June 2022 vs.

June 30, 

March 31,

December 31,

September 30,

June 30, 

March 2022

June 2021

(Dollars in thousands)

    

2022

2022

2021

2021

2021

    

% Change

    

% Change

Noninterest bearing

$

1,081,208

$

1,041,027

$

967,621

$

941,259

$

945,491

3.9

%

14.4

%

Interest bearing:

  

  

  

  

  

  

  

 

Certificate of deposit accounts

 

906,943

 

886,317

 

946,575

 

1,040,098

 

1,020,615

 

2.3

 

(11.1)

Savings accounts

 

154,670

 

158,542

 

156,554

 

152,306

 

152,931

 

(2.4)

 

1.1

Money market accounts

 

2,229,993

 

2,362,390

 

2,342,003

 

2,152,085

 

2,057,188

 

(5.6)

 

8.4

NOW accounts

 

1,977,186

 

1,925,124

 

1,920,779

 

2,135,643

 

2,122,565

 

2.7

 

(6.8)

Total interest-bearing deposits

 

5,268,792

 

5,332,373

 

5,365,911

 

5,480,132

 

5,353,299

 

(1.2)

 

(1.6)

Total deposits

$

6,350,000

$

6,373,400

$

6,333,532

$

6,421,391

$

6,298,790

(0.4)

%  

 

0.8

%

Loan Composition

June 2022 vs.

June 2022 vs.

June 30, 

March 31,

December 31,

September 30,

June 30, 

March 2022

June 2021

(Dollars in thousands)

    

2022

2022

2021

2021

2021

    

% Change

    

% Change

Multifamily residential

$

2,531,858

$

2,500,570

$

2,517,026

$

2,498,980

$

2,542,010

1.3

%  

 

(0.4)

%  

Commercial real estate

 

1,864,507

 

1,764,927

 

1,775,629

 

1,745,855

 

1,726,895

5.6

 

8.0

One-to-four family ― mixed-use property

 

561,100

 

563,679

 

571,795

 

579,100

 

582,211

(0.5)

 

(3.6)

One-to-four family ― residential

 

242,729

 

248,226

 

268,255

 

280,343

 

288,652

(2.2)

 

(15.9)

Co-operative apartments

 

8,130

 

8,248

 

8,316

 

7,804

 

7,883

(1.4)

 

3.1

Construction

 

72,148

 

68,488

 

59,761

 

71,464

 

62,802

5.3

 

14.9

Mortgage Loans

5,280,472

5,154,138

5,200,782

5,183,546

5,210,453

2.5

 

1.3

Small Business Administration (1)

 

40,572

 

59,331

 

93,811

 

148,855

 

215,158

(31.6)

 

(81.1)

Commercial business and other

 

1,431,417

 

1,387,155

 

1,339,273

 

1,294,688

 

1,291,526

3.2

 

10.8

Nonmortgage loans

1,471,989

1,446,486

1,433,084

1,443,543

1,506,684

1.8

 

(2.3)

Net unamortized premiums and unearned loan fees (2)

 

7,932

 

6,640

 

4,239

 

3,265

 

1,669

19.5

 

375.3

Allowance for credit losses

 

(39,424)

 

(37,433)

 

(37,135)

 

(36,363)

 

(42,670)

5.3

 

(7.6)

Net loans

$

6,720,969

$

6,569,831

$

6,600,970

$

6,593,991

$

6,676,136

2.3

%  

 

0.7

%  


(1) Includes $22.2 million, $43.2 million, $77.4 million, $130.8 million, and $197.3 million of PPP loans at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

(2) Includes $6.6 million, $6.9 million, $8.0 million, $8.6 million, and $9.7 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021, and June 30, 2021, respectively.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540013


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings

For the three months ended

For the six months ended

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

(In thousands)

    

2022

2022

2021

2021

2021

    

2022

    

2021

Multifamily residential

$

136,902

$

98,180

$

79,648

$

41,850

$

66,913

$

235,082

$

125,466

Commercial real estate

164,826

45,102

64,916

48,447

37,963

209,928

55,119

One-to-four family – mixed-use property

 

12,228

 

8,498

 

12,440

 

12,823

 

7,135

 

20,726

 

15,847

One-to-four family – residential

 

4,211

 

9,237

 

5,162

 

2,761

 

59,494

 

13,448

 

62,625

Co-operative apartments

 

 

24

 

413

 

 

 

24

 

Construction

 

8,319

 

8,802

 

17,033

 

8,687

 

5,281

 

17,121

 

12,404

Mortgage Loans

326,486

169,843

179,612

114,568

176,786

496,329

271,461

Small Business Administration (1)

 

2,750

 

 

270

 

415

 

17,585

 

2,750

 

142,678

Commercial business and other

 

174,551

 

159,476

 

182,858

 

128,946

 

130,036

 

334,027

 

233,154

Nonmortgage Loans

177,301

159,476

183,128

129,361

147,621

336,777

375,832

Total Closings

$

503,787

$

329,319

$

362,740

$

243,929

$

324,407

$

833,106

$

647,293


(1) Includes $15.5 million and $138.7 million of PPP closings for the three and six months ended June 30, 2021, respectively.

Weighted Average Rate on Loan Closings

For the three months ended

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

Loan type

 

2022

2022

2021

2021

2021

Mortgage loans

 

3.76

%  

3.61

%  

3.77

%  

3.80

%  

3.53

%  

Nonmortgage loans

 

4.21

3.27

3.24

3.49

3.23

Total loans

 

3.92

%  

3.44

%  

3.51

%  

3.64

%  

3.39

%  

Excluding PPP loans

 

3.92

%  

3.44

%  

3.51

%  

3.64

%  

3.51

%  

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540014


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Credit Losses

For the three months ended

For the six months ended

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

    

June 30, 

(Dollars in thousands)

    

2022

2022

2021

2021

2021

2022

2021

Allowance for credit losses

Beginning balances

$

37,433

$

37,135

$

36,363

$

42,670

$

45,099

37,135

45,153

Net loan charge-off (recoveries):

Multifamily residential

    

(1)

    

    

    

    

    

$

(1)

    

$

33

Commercial real estate

    

 

    

 

    

 

    

 

    

 

    

 

    

 

64

One-to-four family – mixed-use property

    

 

    

 

    

 

1

    

 

(123)

    

 

3

    

 

    

 

22

One-to-four family – residential

    

 

(2)

    

 

(2)

    

 

(3)

    

 

(147)

    

 

(2)

    

 

(4)

    

 

(7)

Small Business Administration

    

 

13

    

 

1,015

    

 

(7)

    

 

(8)

    

 

(9)

    

 

1,028

    

 

(19)

Taxi medallion

    

 

(435)

    

 

(12)

    

 

    

(1,235)

    

 

(222)

    

 

(447)

    

 

2,536

Commercial business and other

    

 

(76)

    

 

(66)

    

 

(20)

    

 

894

    

 

1,132

    

 

(142)

    

 

1,138

Total

    

(501)

935

(29)

(619)

902

434

3,767

Provision (benefit) for loan losses

1,490

1,233

743

(6,926)

(1,527)

2,723

1,284

Ending balance

$

39,424

$

37,433

$

37,135

$

36,363

$

42,670

$

39,424

$

42,670

    

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Gross charge-offs

$

50

$

1,036

$

7

$

1,019

$

1,186

$

1,086

$

4,108

Gross recoveries

551

101

36

1,638

284

652

341

Allowance for credit losses to gross loans

0.58

%

0.57

%

0.56

%

0.55

%

0.64

%

0.58

%

0.64

%

Net loan charge-offs (recoveries) to average loans

(0.03)

0.06

(0.04)

0.05

0.01

0.11

Nonperforming Assets

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

(Dollars in thousands)

    

2022

2022

2021

2021

2021

Loans 90 Days Or More Past Due and Still Accruing:

 

  

 

  

 

  

 

  

 

  

Multifamily residential

$

$

$

$

$

201

Construction

873

Commercial business and other

100

1,052

Total

 

100

 

 

 

1,925

 

201

 

  

 

  

 

  

 

  

 

  

Nonaccrual Loans:

 

  

 

  

 

  

 

  

 

  

Multifamily residential

 

3,414

 

3,414

 

2,431

 

4,192

 

4,669

Commercial real estate

 

242

 

5

 

613

 

613

 

8

One-to-four family - mixed-use property (1)

 

790

 

790

 

1,309

 

2,204

 

2,309

One-to-four family - residential

 

5,055

 

7,387

 

7,725

 

7,807

 

6,940

Construction

 

856

 

 

 

 

Small Business Administration

 

937

 

937

 

937

 

976

 

976

Commercial business and other(1)

 

16,554

 

1,533

 

1,918

 

2,500

 

2,489

Total

 

27,848

 

14,066

 

14,933

 

18,292

 

17,391

 

  

 

  

 

  

 

  

 

  

Total Nonperforming Loans (NPLs)

 

27,948

 

14,066

 

14,933

 

20,217

 

17,592

 

  

 

  

 

  

 

  

 

  

Total Nonaccrual HTM Securities

20,981

 

 

 

 

 

  

 

  

 

  

 

  

 

  

Total Nonperforming Assets

$

48,929

$

14,066

$

14,933

$

20,217

$

17,592

 

  

 

  

 

  

 

  

 

  

Nonperforming Assets to Total Assets

 

0.59

%  

 

0.17

%  

 

0.19

%  

 

0.25

%  

 

0.22

%  

Allowance for Credit Losses to NPLs

 

141.1

%  

 

266.1

%  

 

248.7

%  

 

179.9

%  

 

242.6

%  


(1) Not included in the above analysis are nonaccrual performing TDR one-to-four family - mixed use property loans totaling $0.3 million each in 2Q22, 1Q22, 4Q21,  3Q21, and 2Q21; nonaccrual performing TDR commercial business loans totaling $2.8 million in 2Q22 and 1Q22, less than $0.1 million in 4Q21 and 3Q21, and $2.2 million in 2Q21.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540015


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

The variance in GAAP and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to swaps designated to protect against rising rates and borrowing carried at fair value under the fair value option. As the swaps get closer to maturity, the volatility in fair value adjustments will dissipate. In a declining interest rate environment, the movement in the curve exaggerates our mark-to-market loss position. In a rising interest rate environment or a steepening of the yield curve, the loss position would experience an improvement.

Core 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, Base Net Interest Income FTE, Base Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Base Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense and Tangible Book Value per common share are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears below in tabular form. The Company believes that these measures are useful for both investors and management to understand the effects of certain interest and noninterest items and provide an alternative view of the Company's performance over time and in comparison to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as 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.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540016


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)

For the three months ended

For the six months ended

(Dollars in thousands,

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

June 30, 

except per share data)

2022

2022

2021

2021

2021

2022

2021

GAAP income before income taxes

$

34,971

$

24,640

$

22,826

$

34,812

$

25,416

$

59,611

$

51,640

Net (gain) loss from fair value adjustments (Noninterest income (loss))

 

(2,533)

 

1,809

 

5,140

 

2,289

 

6,548

 

(724)

 

5,566

Net (gain) loss on sale of securities (Noninterest income (loss))

 

 

 

 

10

 

(123)

 

 

(123)

Life insurance proceeds

(Noninterest income (loss))

 

(1,536)

 

 

 

 

 

(1,536)

 

Net gain on disposition of assets (Noninterest income (loss))

 

 

 

 

 

 

 

(621)

Net (gain) loss from fair value adjustments on qualifying hedges

(Interest and fees on loans)

 

60

 

129

 

(1,122)

 

(194)

 

664

 

189

(763)

Net amortization of purchase accounting adjustments (Various)

(237)

(924)

(324)

(958)

(418)

(1,161)

(1,207)

Merger (benefit) expense (Various)

 

 

 

(17)

 

2,096

 

(490)

 

 

483

Core income before taxes

 

30,725

 

25,654

 

26,503

 

38,055

 

31,597

 

56,379

 

54,975

Provision for income taxes for core income

 

9,207

 

6,685

 

5,535

 

10,226

 

8,603

 

15,892

 

15,008

Core net income

$

21,518

$

18,969

$

20,968

$

27,829

$

22,994

$

40,487

$

39,967

GAAP diluted earnings per common share

$

0.81

$

0.58

$

0.58

$

0.81

$

0.61

$

1.39

$

1.21

Net (gain) loss from fair value adjustments, net of tax

 

(0.06)

 

0.04

 

0.13

 

0.05

 

0.15

 

(0.02)

0.13

Net loss on sale of securities, net of tax

 

 

 

 

 

 

Life insurance proceeds

 

(0.05)

 

 

 

 

 

(0.05)

Net gain on disposition of assets, net of tax

 

 

 

 

 

 

(0.01)

Net (gain) loss from fair value adjustments on qualifying hedges, net of tax

 

 

 

(0.03)

 

 

0.02

 

(0.02)

Net amortization of purchase accounting adjustments, net of tax

(0.01)

(0.02)

(0.01)

(0.02)

(0.01)

(0.03)

(0.03)

Merger (benefit) expense, net of tax

 

 

 

 

0.05

 

(0.01)

 

0.01

NYS tax change

 

 

 

 

(0.02)

 

(0.02)

Core diluted earnings per common share(1)

$

0.70

$

0.61

$

0.67

$

0.88

$

0.73

$

1.30

$

1.26

Core net income, as calculated above

$

21,518

$

18,969

$

20,968

$

27,829

$

22,994

$

40,487

$

39,967

Average assets

 

8,211,763

 

8,049,470

 

8,090,701

 

8,072,918

 

8,263,553

 

8,131,065

 

8,205,954

Average equity

 

667,456

 

673,012

 

671,474

 

659,288

 

644,690

 

670,219

 

632,238

Core return on average assets(2)

 

1.05

%  

 

0.94

%  

 

1.04

%  

 

1.38

%  

 

1.11

%  

 

1.00

%  

 

0.97

%

Core return on average equity(2)

 

12.90

%  

 

11.27

%  

 

12.49

%  

 

16.88

%  

 

14.27

%  

 

12.08

%  

 

12.64

%


(1) Core diluted earnings per common share may not foot due to rounding.

(2) Ratios are calculated on an annualized basis.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540017


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE and PRE-PROVISION

PRE-TAX NET REVENUE

(Unaudited)

For the three months ended

    

For the six months ended

 

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

    

June 30, 

 

(Dollars in thousands)

2022

    

2022

    

2021

    

2021

    

2021

2022

2021

 

GAAP Net interest income

$

64,730

$

63,479

$

62,674

$

63,364

$

61,039

$

128,209

$

121,931

Net (gain) loss from fair value adjustments on qualifying hedges

60

129

(1,122)

(194)

664

189

(763)

Net amortization of purchase accounting adjustments

(367)

(1,058)

(462)

(1,100)

(565)

(1,425)

(1,487)

Core Net interest income

$

64,423

$

62,550

$

61,090

$

62,070

$

61,138

$

126,973

$

119,681

GAAP Noninterest income (loss)

$

7,353

$

1,313

$

(280)

$

866

$

(3,210)

$

8,666

$

3,101

Net (gain) loss from fair value adjustments

(2,533)

1,809

5,140

2,289

6,548

(724)

5,566

Net gain (loss) on sale of securities

10

(123)

(123)

Life insurance proceeds

(1,536)

(1,536)

Net gain on sale of assets

(621)

Core Noninterest income

$

3,284

$

3,122

$

4,860

$

3,165

$

3,215

$

6,406

$

7,923

GAAP Noninterest expense

$

35,522

$

38,794

$

38,807

$

36,345

$

34,011

$

74,316

$

72,170

Net amortization of purchase accounting adjustments

(130)

(134)

(138)

(142)

(147)

(264)

(280)

Merger expense (benefit)

17

(2,096)

490

(483)

Core Noninterest expense

$

35,392

$

38,660

$

38,686

$

34,107

$

34,354

$

74,052

$

71,407

Net interest income

$

64,730

$

63,479

$

62,674

$

63,364

$

61,039

$

128,209

$

121,931

Noninterest income (loss)

7,353

1,313

(280)

866

(3,210)

8,666

3,101

Noninterest expense

(35,522)

(38,794)

(38,807)

(36,345)

(34,011)

(74,316)

(72,170)

Pre-provision pre-tax net revenue

$

36,561

$

25,998

$

23,587

$

27,885

$

23,818

$

62,559

$

52,862

Core:

Net interest income

$

64,423

$

62,550

$

61,090

$

62,070

$

61,138

$

126,973

$

119,681

Noninterest income

3,284

3,122

4,860

3,165

3,215

6,406

7,923

Noninterest expense

(35,392)

(38,660)

(38,686)

(34,107)

(34,354)

(74,052)

(71,407)

Pre-provision pre-tax net revenue

$

32,315

$

27,012

$

27,264

$

31,128

$

29,999

$

59,327

$

56,197

Efficiency Ratio

52.3

%

58.9

%

58.7

%

52.3

%

53.4

%

55.5

%

56.0

%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540018


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN

to CORE and BASE NET INTEREST INCOME

(Unaudited)

For the three months ended

For the six months ended

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

June 30, 

    

June 30, 

 

(Dollars in thousands)

2022

2022

2021

2021

2021

2022

2021

 

GAAP net interest income

$

64,730

$

63,479

$

62,674

$

63,364

$

61,039

$

128,209

$

121,931

Net (gain) loss from fair value adjustments on qualifying hedges

 

60

 

129

 

(1,122)

 

(194)

 

664

 

189

 

(763)

Net amortization of purchase accounting adjustments

(367)

(1,058)

(462)

(1,100)

(565)

(1,425)

(1,487)

Tax equivalent adjustment

131

124

113

113

113

255

224

Core net interest income FTE

$

64,554

$

62,674

$

61,203

$

62,183

$

61,251

$

127,228

$

119,905

Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from nonaccrual loans

 

(2,281)

 

(1,716)

 

(1,497)

 

(2,136)

 

(2,046)

 

(3,997)

 

(2,993)

Base net interest income FTE

$

62,273

$

60,958

$

59,706

$

60,047

$

59,205

$

123,231

$

116,912

Total average interest-earning assets (1)

$

7,746,640

$

7,577,053

$

7,634,601

$

7,616,332

$

7,799,176

$

7,662,315

$

7,738,344

Core net interest margin FTE

 

3.33

%  

 

3.31

%  

 

3.21

%  

 

3.27

%  

 

3.14

%  

 

3.32

%  

 

3.10

%  

Base net interest margin FTE

 

3.22

%  

 

3.22

%  

 

3.13

%  

 

3.15

%  

 

3.04

%  

 

3.22

%  

 

3.02

%  

GAAP interest income on total loans, net

$

69,192

$

67,516

$

68,113

$

69,198

$

67,999

$

136,708

$

137,020

Net (gain) loss from fair value adjustments on qualifying hedges

 

60

 

129

 

(1,122)

 

(194)

 

664

 

189

 

(763)

Net amortization of purchase accounting adjustments

(357)

(1,117)

(535)

(1,126)

(624)

(1,474)

(1,352)

Core interest income on total loans, net

$

68,895

$

66,528

$

66,456

$

67,878

$

68,039

$

135,423

$

134,905

Prepayment penalties received on loans, net of reversals and recoveries of interest from nonaccrual loans

 

(2,333)

 

(1,716)

 

(1,497)

 

(2,135)

 

(2,046)

 

(4,049)

 

(2,993)

Base interest income on total loans, net

$

66,562

$

64,812

$

64,959

$

65,743

$

65,993

$

131,374

$

131,912

Average total loans, net (1)

$

6,647,131

$

6,586,253

$

6,566,654

$

6,642,434

$

6,697,103

$

6,616,860

$

6,704,237

Core yield on total loans

 

4.15

%  

 

4.04

%  

 

4.05

%  

 

4.09

%  

 

4.06

%  

 

4.09

%  

 

4.02

%  

Base yield on total loans

 

4.01

%  

 

3.94

%  

 

3.96

%  

 

3.96

%  

 

3.94

%  

 

3.97

%  

 

3.94

%  


(1) Excludes purchase accounting average balances for all periods presented.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540019


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CALCULATION OF TANGIBLE STOCKHOLDERS’

COMMON EQUITY to TANGIBLE ASSETS

(Unaudited)

    

June 30, 

March 31,

December 31,

September 30,

June 30, 

(Dollars in thousands)

2022

2022

2021

2021

2021

Total Equity

$

670,812

$

675,813

$

679,628

$

668,096

$

655,167

Less:

 

  

 

  

 

  

 

  

 

  

Goodwill

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

Core deposit Intangibles

(2,282)

(2,420)

(2,562)

(2,708)

(2,859)

Intangible deferred tax liabilities

 

328

328

287

287

Tangible Stockholders' Common Equity

$

650,894

$

656,085

$

659,758

$

648,039

$

634,959

Total Assets

$

8,339,587

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

Less:

 

  

 

  

 

  

 

  

 

  

Goodwill

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

Core deposit Intangibles

(2,282)

(2,420)

(2,562)

(2,708)

(2,859)

Intangible deferred tax liabilities

 

 

328

 

328

 

287

 

287

Tangible Assets

$

8,319,669

$

8,150,105

$

8,026,041

$

8,057,277

$

8,139,137

Tangible Stockholders' Common Equity to Tangible Assets

 

7.82

%  

 

8.05

%  

 

8.22

%  

 

8.04

%  

 

7.80

%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540020


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Cover
Jul. 26, 2022
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jul. 26, 2022
Entity File Number 001-33013
Entity Registrant Name FLUSHING FINANCIAL CORPORATION
Entity Central Index Key 0000923139
Entity Tax Identification Number 11-3209278
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 220 RXR Plaza
Entity Address, City or Town Uniondale
Entity Address, State or Province NY
Entity Address, Postal Zip Code 11556
City Area Code 718
Local Phone Number 961-5400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol FFIC
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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