2009 First Quarter Highlights and Other Significant Events * Net Interest Income for the 1st Quarter Grew to $26.0 Million; a Record Level. * Loans, Net Grew $68.1 Million, or 2.3%, for the Quarter to Over $3.0 Billion. * Deposits Grew $144.0 Million, or 5.9%, for the Quarter to Over $2.5 Billion. * Core Operating Earnings for the Quarter Were $5.0 Million; Core EPS of $0.20. * Net Charge-Offs for the 1st Quarter Were 0.01% of Average Loans. * Total Non-Performing Assets At March 31, 2009 Were 1.48% of Total Assets. * $4.5 Million Provision Recorded for Loan Losses in Quarter. * $1.3 Million After-Tax Net Gain Recorded in Quarter On Financial Assets and Financial Liabilities Carried At Fair Value Under SFAS No.159. * Regulatory Capital Ratios At March 31, 2009 Were 7.87% for Core Capital and 13.08% for Risk-Weighted Capital. * Book Value Per Common Share Increased To $11.05.
LAKE SUCCESS, N.Y., April 21, 2009 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the "Company") (Nasdaq:FFIC), the parent holding company for Flushing Savings Bank, FSB (the "Bank"), today announced its financial results for the three months ended March 31, 2009.
John R. Buran, President and Chief Executive Officer, stated: "The first quarter of 2009 reflected the same challenges we faced in 2008 as the economy remained in a recession. During the first quarter of 2009, credit markets continued to soften, and we saw a $19.5 million increase in our non-performing loans. We recorded a $4.5 million provision for loan losses for the first quarter of 2009, which reduced diluted earnings per common share, on an after-tax basis, by $0.12. Compared to the first quarter of 2008, net interest income growth of 26%, combined with operating expenses that matched budget, helped blunt the impact of the incremental provision for loan losses. Charge-offs for the recent quarter were once again low at 0.01% of average loans as we continued to manage delinquent loans, the majority of which are on multi-family properties with good current valuations.
"The growth in net interest income was driven by continued growth in our loan portfolio and deposit base, as both loans and deposits grew to record levels at March 31, 2009. We were also able to reduce our funding costs, which declined 42 basis points to 3.43% for the first quarter of 2009 from 3.85% for the fourth quarter of 2008. Our ability to both grow deposits and reduce related funding costs, while helped by a favorable yield curve, is directly related to our continuing plan to make our Bank more 'commercial-like.' Our expanded capabilities and product offerings established in the last three years helped to grow transaction accounts by 26% this quarter, thereby helping to reduce our funding costs.
"Loan origination activity started slowly in the first quarter as economic uncertainties kept many borrowers out of the market. However, by the end of the quarter, the trend was reversing as we closed nearly half of our loan originations for the quarter in March.
"While we remain cautious about the economy, we recognize that we have the capital, liquidity, and the credit discipline to pick up market share in this huge New York Metropolitan market, as certain competitors temporarily focus on other matters.
"As we continue to grow the balance sheet, we are mindful of asset quality and our capital requirements. The Bank continues to be well-capitalized under regulatory requirements, with core and risk-weighted capital ratios of 7.87% and 13.08%, respectively, at March 31, 2009."
Net income for the first quarter ended March 31, 2009 was $6.3 million, a decrease of $0.8 million, from the $7.2 million earned in the first quarter of 2008. Diluted earnings per common share for the first quarter were $0.26, a decrease of $0.09, from the $0.35 earned in the comparable quarter a year ago.
Core operating earnings, which exclude the effects of SFAS No. 159 and certain non-operating items, decreased to $5.0 million, or $0.20 per diluted share, in the first quarter of 2009 from $6.7 million, or $0.33 per diluted share, in the first quarter of 2008. The decrease in core operating earnings for the first quarter of 2009 compared to the first quarter of 2008 is primarily attributed to the increased provision for loan losses and the increase in deposit insurance.
For a reconciliation of core operating earnings and core operating earnings per share to accounting principles generally accepted in the United States ("GAAP") net income and GAAP earnings per share, please refer to the tables in the section titled "Reconciliation of GAAP and Core Operating Earnings".
Earnings Summary - Three Months Ended March 31, 2009
For the three months ended March 31, 2009, net interest income was $26.1 million, an increase of $5.3 million, or 25.8%, from $20.7 million for the three months ended March 31, 2008. The increase in net interest income is attributed to an increase in the average balance of interest-earning assets of $628.0 million to $3,837.3 million, combined with an increase in the net interest spread of 12 basis points to 2.53% for the quarter ended March 31, 2009 from 2.41% for the comparable period in 2008. The yield on interest-earning assets decreased 70 basis points to 5.96% for the three months ended March 31, 2009 from 6.66% for the three months ended March 31, 2008. The cost of interest-bearing liabilities decreased 82 basis points to 3.43% for the three months ended March 31, 2009 from 4.25% for the comparable prior year period. The net interest margin increased 14 basis points to 2.72% for the three months ended March 31, 2009 from 2.58% for the three months ended March 31, 2008. Excluding prepayment penalty income, the net interest margin would have been 2.67% and 2.44% for the three month periods ended March 31, 2009 and 2008, respectively.
The decline in the yield of interest-earning assets was primarily due to a 57 basis point reduction in the yield of the loan portfolio combined with a $374.9 million increase in the combined average balances of the lower yielding securities portfolio and interest-earning deposits, with each having a lower yield than the average yield of total interest-earning assets. The 57 basis point reduction in the yield of the loan portfolio to 6.35% for the quarter ended March 31, 2009 from 6.92% for the quarter ended March 31, 2008 was primarily due to a decline in prepayment penalty income, adjustable rate loans adjusting down as rates have continued to decline, and an increase in non-accrual loans for which we do not accrue interest income. The yield was positively impacted by the average rate on mortgage loans originated during the past twelve months being higher than the average rate of both the existing loan portfolio and mortgage loans which were paid-in-full during the period. The yield on the mortgage loan portfolio declined 50 basis points to 6.41% for the quarter ended March 31, 2009 from 6.91% for the quarter ended March 31, 2008. The yield on the mortgage loan portfolio, excluding prepayment penalty income, declined 38 basis points to 6.35% for the quarter ended March 31, 2009 from 6.73% for the quarter ended March 31, 2008. The decline in the yield of interest-earning assets was partially offset by an increase of $253.2 million in the average balance of the loan portfolio to $2,986.0 million for the quarter ended March 31, 2009.
The decrease in the cost of interest-bearing liabilities is primarily attributed to the Federal Open Market Committee lowering the overnight interest rate throughout 2008, and maintaining the targeted Fed Funds rate in a range of 0.00% to 0.25% during the first quarter of 2009. This has allowed the Bank to reduce the rates it pays on its deposit products. The cost of certificates of deposit, money market accounts, savings accounts and NOW accounts decreased 98 basis points, 176 basis points, 80 basis points and 33 basis points respectively, for the quarter ended March 31, 2009 compared to the comparable period in 2008. This resulted in a decrease in the cost of due to depositors of 107 basis points to 2.97% for the quarter ended March 31, 2009 from 4.04% for the quarter ended March 31, 2008. The cost of borrowed funds also decreased 12 basis points to 4.62% for the quarter ended March 31, 2009 from 4.74% for the quarter ended March 31, 2008. The combined average balances of lower-costing savings, money market and NOW accounts increased a total of $262.8 million for the quarter ended March 31, 2009 compared to the comparable period in 2008, while the average balance of higher-costing certificates of deposits increased $327.1 million for the quarter ended March 31, 2009 compared to the comparable period in 2008.
A provision for loan losses of $4.5 million was recorded for the quarter ended March 31, 2009 compared to $0.3 million recorded in the quarter ended March 31, 2008. The provision for loan losses recorded in 2009 was primarily due to an increase in non-performing loans. This increase in non-performing loans primarily consists of mortgage loans that are located in the New York City metropolitan market. Historically, the Bank has not incurred losses on mortgage loans, primarily due to conservative underwriting standards that include, among other things, a loan to value ratio of 75% or less and a debt coverage ratio of at least 125%. However, given the increase in non-performing loans and current economic uncertainties, management, as a result of the regular quarterly analysis of the allowance for loans losses, deemed it necessary to record an additional provision for possible loan losses in the first quarter of 2009.
Non-interest income increased $0.7 million, or 17.8%, for the three months ended March 31, 2009 to $4.7 million, as compared to $4.0 million for the quarter ended March 31, 2008. There was a $2.3 million gain in the fair value of financial instruments accounted for under SFAS No. 159 for the three months ended March 31, 2009 compared to a $1.6 million loss recorded in the comparable prior year period. The increased income recorded from financial instruments accounted for under SFAS No. 159 was partially offset by decreases in loan fee income of $0.3 million due to a decrease in fees received when loans satisfy, and $0.5 million in dividend income on FHLB-NY stock. In addition the three months ended March 31, 2008 included receipt of a $2.4 million settlement on the WorldCom Fraud case. This amount was received as a result of a class action litigation settlement, and was included in Other Income.
Non-interest expense was $16.0 million for the three months ended March 31, 2009, an increase of $2.8 million, or 21.0%, from $13.2 million for the three months ended March 31, 2008. Employee salary and benefits increased $1.0 million, which is primarily attributed to the growth of the Bank, including one new branch and the expansion of the collections department, increased costs for postretirement benefits, and grants of restricted stock awards in the first quarter of 2009. Federal Deposit Insurance Corporation ("FDIC") insurance increased $0.7 million compared to the comparable prior year period as the credits we received to offset FDIC insurance charges were fully utilized in the first quarter of 2008, and the FDIC raised the deposit insurance premiums during 2009. Other operating expense increased $0.6 million primarily due to the accelerated vesting of restricted stock unit awards granted to directors during January 2009 and not granted in the comparable prior year period. The 2005 Omnibus Plan was amended in January 2009 to change the annual grant date of awards to directors from June to January of each year. The efficiency ratio was 67.0% and 56.1% for the three months ended, March 31, 2009 and 2008, respectively.
Net income for the three months ended March 31, 2009 was $6.3 million, a decrease of $0.8 million or 11.8%, as compared to $7.2 million for the three months ended March 31, 2008. Diluted earnings per common share were $0.26 for the three months ended March 31, 2009, a decrease of $0.09, or 25.7%, from $0.35 for the three months ended March 31, 2008.
Return on average equity was 8.4% for the three months ended March 31, 2009 compared to 12.3% for the three months ended March 31, 2008. Return on average assets was 0.6% for the three months ended March 31, 2009 compared to 0.8% for the three months ended March 31, 2008.
Balance Sheet Summary
At March 31, 2009, total assets were $4,068.5 million, an increase of $119.0 million, or 3.0%, from $3,949.5 million at December 31, 2008. Total loans, net increased $68.1 million, or 2.3%, during the first quarter ended March 31, 2009 to $3,028.7 million from $2,960.7 million at December 31, 2008. Loan originations were $123.5 million for the three months ended March 31, 2009, a decrease of $98.6 million from $222.1 million for the three months ended March 31, 2008, as loan demand has declined due to the current economic environment. At March 31, 2009, loan applications in process totaled $180.3 million, compared to $268.8 million at March 31, 2008 and $185.4 million at December 31, 2008. The following table shows loan originations and purchases for the periods indicated.
For the three months
ended March 31,
------------------
(In thousands) 2009 2008
---------------------------------------------------------------------
Multi-family residential $ 36,947 $ 47,482
Commercial real estate 36,662 42,933
One-to-four family - mixed-use property 6,108 34,618
One-to-four family - residential 7,014 68,021
Construction 5,281 9,502
Commercial business and other 31,486 19,544
-------- --------
Total loan originations and purchases $123,498 $222,100
======== ========
Loan purchases included in the table above were $2.9 million for commercial real estate and $5.9 million for commercial business and other for the quarter ended March 31, 2009, and $50.0 million for one-to-four family -- residential, $2.5 million for commercial real estate, and $0.4 million for commercial business and other for the quarter ended March 31, 2008.
As the Bank continues to increase its loan portfolio, management continues to adhere to the Bank's conservative underwriting standards. Although non-accrual loans have increased, primarily due to the current economic environment, the Bank has been able to minimize charge-offs from impaired loans and maintain asset quality as it takes a proactive approach to managing delinquent loans, including conducting site examinations and encouraging borrowers to meet with a Bank representative. The Bank has been developing short-term payment plans that enable certain borrowers to bring their loans current. The Bank reviews its delinquencies on a loan by loan basis, diligently exploring ways to help borrowers meet their obligations and return them back to current status as soon as possible. The Bank has increased staffing that handles the delinquent loans by hiring people experienced in loan workouts. The Bank's non-performing assets were $60.2 million at March 31, 2009 an increase of $19.5 million from $40.7 million at December 31, 2008, and an increase of $52.3 million from $7.9 million at March 31, 2008. Total non-performing assets as a percentage of total assets were 1.48% at March 31, 2009 compared to 1.03% at December 31, 2008 and 0.23% as of March 31, 2008. The ratio of allowance for loan losses to total non-performing loans was 26% at March 31, 2009, compared to 28% at December 31, 2008 and 87% at March 31, 2008. The following table shows non-performing assets at the periods indicated:
March 31, Dec. 31,
(In thousands) 2009 2008
---------------------------------------------------------------------
Loans 90 days or more past due
and still accruing:
Commercial real estate $ -- $ 425
One-to-four family - residential 1,518 889
-------- --------
Total 1,518 1,314
-------- --------
Non-accrual loans:
Multi-family residential 19,113 12,010
Commercial real estate 11,533 7,409
One-to-four family - mixed-use property 16,738 10,639
One-to-four family - residential 1,354 1,122
Construction 3,757 4,457
Small business administration 246 354
Commercial business and other 5,173 2,667
-------- --------
Total 57,914 38,658
-------- --------
Total non-performing loans 59,432 39,972
-------- --------
Other non-performing assets:
Real estate acquired through foreclosure 125 125
Investment securities 607 607
-------- --------
Total 732 732
-------- --------
Total non-performing assets $ 60,164 $ 40,704
======== ========
During the quarter ended March 31, 2009, mortgage-backed securities increased $62.7 million, or 9.3%, to $737.5 million, while other securities decreased $8.1 million, or 11.1%, to $64.4 million. During the quarter ended March 31, 2009, there were purchases of $85.6 million of mortgage-backed securities, some of which were made to support the activities of Flushing Commercial Bank. Other securities primarily consist of securities issued by government agencies and mutual or bond funds that invest in government and government agency securities.
Total liabilities were $3,758.6 million at March 31, 2009, an increase of $110.6 million, or 3.0%, from December 31, 2008. During the quarter ended March 31, 2009, due to depositors increased $144.0 million to $2,581.6 million, primarily as a result of increases of $85.0 million in NOW accounts, $45.2 million in savings accounts, and $16.2 million in certificate of deposit accounts. Borrowed funds decreased $28.9 million to $1,110.0 million at March 31, 2009 from $1,138.9 million at December 31, 2008. In addition, mortgagors' escrow deposits increased $4.0 million during the quarter ended March 31, 2009.
Total stockholders' equity increased $8.4 million, or 2.8%, to $309.9 million at March 31, 2009 from $301.5 million at December 31, 2008. The increase is primarily due to net income of $6.3 million and an increase in other comprehensive income of $3.1 million for the three months ended March 31, 2009. This was partially offset by the declaration and payment of dividends on the Company's common stock and preferred stock of $2.6 million and $0.5 million, respectively. The exercise of stock options increased stockholders' equity by $0.7 million, including the income tax benefit realized by the Company upon the exercise of options. Book value per common share was $11.05 at March 31, 2009, compared to $10.70 per common share at December 31, 2008 and $11.03 per common share at March 31, 2008.
The Company did not repurchase any common shares during the quarter ended March 31, 2009 under its current stock repurchase program. At March 31, 2009, 362,050 common shares remain to be repurchased under the current stock repurchase program. As a condition of the Company's participation in the U.S. Treasury's Capital Purchase Program, common shares may not be purchased for the next three years without approval of the U.S. Treasury unless the preferred shares are redeemed or transferred to a third party. As of the date of the press release, the Company has not requested approval from the U.S. Treasury to repurchase common shares.
Reconciliation of GAAP and Core Operating Earnings
Although core operating earnings are not a measure of performance calculated in accordance with GAAP, the Company believes that its core operating earnings are an important indication of performance through ongoing operations. The Company believes that core operating earnings are useful to management and for investors to evaluate its ongoing operating performance, and in comparing its performance with other companies in the banking industry, particularly those that have not adopted the fair value option of SFAS No. 159. Core operating earnings should not be considered in isolation or as a substitute for GAAP earnings. During the periods presented, the Company calculated core operating earnings by subtracting or adding back the fair value gain or loss recorded under SFAS No.159 and the income or expense of certain non-recurring items listed below.
Three Months Ended
---------------------------
March 31, March 31, Dec. 31,
2009 2008 2008
---------------------------
(In thousands, except
per share data)
GAAP net income $ 6,309 $ 7,151 $ 6,479
Net (gain) loss under SFAS No. 159,
net of tax (1,304) 895 (782)
Other-than-temporary impairment
charge, net of tax -- -- 645
Partial recovery of WorldCom, Inc.
loss, net of tax -- (1,352) 4
---------------------------
Core net income $ 5,005 $ 6,694 $ 6,346
===========================
GAAP diluted earnings per common share $ 0.26 $ 0.35 $ 0.31
Net (gain) loss under SFAS No. 159,
net of tax (0.06) 0.04 (0.03)
Other-than-temporary impairment
charge, net of tax -- -- 0.03
Partial recovery of WorldCom, Inc.
loss, net of tax -- (0.06) --
---------------------------
Core diluted earnings per common share $ 0.20 $ 0.33 $ 0.31
===========================
About Flushing Financial Corporation
Flushing Financial Corporation is the parent holding company for Flushing Savings Bank, FSB, a federally chartered stock savings bank insured by the FDIC. The Bank serves consumers and businesses by offering a full complement of deposit, loan, and cash management services through its fifteen banking offices located in Queens, Brooklyn, Manhattan, and Nassau County. The Bank also operates an online banking division, iGObanking.com(r), which enables the Bank to expand outside of its current geographic footprint. In 2007, the Bank established Flushing Commercial Bank, a wholly-owned subsidiary, to provide banking services to public entities including counties, towns, villages, school districts, libraries, fire districts and the various courts throughout the metropolitan area.
Additional information on Flushing Financial Corporation may be obtained by visiting the Company's website at http://www.flushingsavings.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, 2008 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.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands Except Per Share Data)
March 31, Dec. 31,
2009 2008
---------- ----------
ASSETS (Unaudited)
------
Cash and due from banks $ 27,738 $ 30,404
Securities available for sale:
Mortgage-backed securities 737,507 674,764
Other securities 64,421 72,497
Loans:
Multi-family residential 1,020,730 999,185
Commercial real estate 780,380 752,120
One-to-four family - mixed-use property 749,124 751,952
One-to-four family - residential 235,703 238,711
Co-operative apartments 6,505 6,566
Construction 106,829 103,626
Small business administration 19,633 19,671
Taxi medallion 35,125 12,979
Commercial business and other 72,878 69,759
Net unamortized premiums and unearned
loan fees 17,085 17,121
Allowance for loan losses (15,280) (11,028)
---------- ----------
Net loans 3,028,712 2,960,662
Interest and dividends receivable 18,922 18,473
Bank premises and equipment, net 23,359 22,806
Federal Home Loan Bank of New York stock 46,403 47,665
Bank owned life insurance 58,098 57,499
Goodwill 16,127 16,127
Core deposit intangible 2,225 2,342
Other assets 44,977 46,232
---------- ----------
Total assets $4,068,489 $3,949,471
========== ==========
LIABILITIES
-----------
Due to depositors:
Non-interest bearing $ 72,120 $ 69,624
Interest-bearing:
Certificate of deposit accounts 1,452,625 1,436,450
Savings accounts 404,802 359,595
Money market accounts 301,323 306,178
NOW accounts 350,724 265,762
---------- ----------
Total interest-bearing deposits 2,509,474 2,367,985
Mortgagors' escrow deposits 35,270 31,225
Borrowed funds 1,110,043 1,138,949
Other liabilities 31,658 40,196
---------- ----------
Total liabilities 3,758,565 3,647,979
---------- ----------
STOCKHOLDERS' EQUITY
--------------------
Preferred stock ($0.01 par value; 5,000,000
shares authorized; 70,000 shares issued
at March 31, 2009 and December 31, 2008;
liquidation preference value of
$70,000) 1 1
Common stock ($0.01 par value; 40,000,000
shares authorized; 21,715,809 shares and
21,625,709 shares issued and outstanding
at March 31, 2009 and December 31, 2008,
respectively) 217 216
Additional paid-in capital 152,757 150,662
Unearned compensation (1,116) (1,300)
Retained earnings 175,263 172,216
Accumulated other comprehensive loss,
net of taxes (17,198) (20,303)
---------- ----------
Total stockholders' equity 309,924 301,492
---------- ----------
Total liabilities and
stockholders' equity $4,068,489 $3,949,471
========== ==========
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Data)
(Unaudited)
For the three months
ended March 31,
-----------------------
2009 2008
---------- ----------
Interest and dividend income
----------------------------
Interest and fees on loans $ 47,376 $ 47,311
Interest and dividends on securities:
Interest 9,337 4,955
Dividends 412 864
Other interest income 43 297
---------- ----------
Total interest and dividend income 57,168 53,427
---------- ----------
Interest expense
----------------
Deposits 18,827 19,632
Other interest expense 12,285 13,080
---------- ----------
Total interest expense 31,112 32,712
---------- ----------
Net interest income 26,056 20,715
Provision for loan losses 4,500 300
---------- ----------
Net interest income after provision
for loan losses 21,556 20,415
---------- ----------
Non-interest income
-------------------
Loan fee income 417 698
Banking services fee income 446 442
Net gain on sale of loans held for sale -- 31
Net gain on sale of loans -- 22
Net gain (loss) from fair value adjustments 2,349 (1,602)
Federal Home Loan Bank of New York
stock dividends 346 881
Bank owned life insurance 599 554
Other income 523 2,946
---------- ----------
Total non-interest income 4,680 3,972
---------- ----------
Non-interest expense
--------------------
Salaries and employee benefits 7,471 6,454
Occupancy and equipment 1,774 1,636
Professional services 1,655 1,383
Data processing 1,089 1,045
Depreciation and amortization 622 594
FDIC deposit insurance 977 255
Other operating expenses 2,404 1,850
---------- ----------
Total non-interest expense 15,992 13,217
---------- ----------
Income before income taxes 10,244 11,170
---------- ----------
Provision for income taxes
--------------------------
Federal 3,095 3,164
State and local 840 855
---------- ----------
Total taxes 3,935 4,019
---------- ----------
Net income $ 6,309 $ 7,151
========== ==========
Basic earnings per common share $ 0.26 $ 0.36
Diluted earnings per common share $ 0.26 $ 0.35
Dividends per common share $ 0.13 $ 0.13
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands Except Share Data)
(Unaudited)
At or for the three months
Ended March 31,
-----------------------------
2009 2008
------------- -------------
Per Share Data
--------------
Basic earnings per common share $0.26 $0.36
Diluted earnings per common share $0.26 $0.35
Average number of common shares
outstanding for:
Basic earnings per common share
computation (1) 20,589,816 19,988,378
Diluted earnings per common share
computation (1) 20,596,114 20,173,048
Book value per common share (2) $11.05 $11.03
Average Balances
----------------
Total loans, net $ 2,985,958 $ 2,732,792
Total interest-earning assets 3,837,289 3,209,252
Total assets 4,021,944 3,398,079
Total due to depositors 2,532,095 1,942,197
Total interest-bearing liabilities 3,628,656 3,076,863
Stockholders' equity 299,544 233,081
Performance Ratios (3)
------------------
Return on average assets 0.63 % 0.84 %
Return on average equity 8.42 12.27
Yield on average interest-earning assets 5.96 6.66
Cost of average interest-bearing
liabilities 3.43 4.25
Net interest rate spread during period 2.53 2.41
Net interest margin 2.72 2.58
Non-interest expense to average assets 1.59 1.56
Efficiency ratio 66.95 56.08
Average interest-earning assets to
average interest-bearing liabilities 1.06 X 1.04 X
(1) Reflects the adoption of FSP EITF 03-6-1, "Determining Whether
Instruments Granted in Share-Based Payment Transactions are
Participating Securities," which has been applied retrospectively.
(2) Calculated by dividing common stockholders' equity of
$239.9 million and $235.4 million at March 31, 2009 and 2008,
respectively, by 21,715,809 and 21,343,311 shares outstanding at
March 31, 2009 and 2008, respectively. Common stockholders'
equity is total stockholders' equity less the liquidation
preference value of preferred shares outstanding.
(3) Ratios for the quarters ended March 31, 2009 and 2008 are
presented on an annualized basis.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
At or for the
three months At or for the
ended year ended
March 31, December 31,
2009 2008
------------- ------------
Selected Financial Ratios and Other Data
----------------------------------------
Regulatory capital ratios (for Flushing
Savings Bank only):
Tangible capital (minimum
requirement = 1.5%) 7.87% 7.92%
Leverage and core capital (minimum
requirement = 3%) 7.87 7.92
Total risk-based capital (minimum
requirement = 8%) 13.08 13.02
Capital ratios:
Average equity to average assets 7.45% 6.54%
Equity to total assets 7.62 7.63
Asset quality:
Non-accrual loans $57,914 $38,658
Non-performing loans 59,432 39,972
Non-performing assets 60,164 40,704
Net charge-offs 248 1,205
Asset quality ratios:
Non-performing loans to gross loans 1.96% 1.35%
Non-performing assets to total assets 1.48 1.03
Allowance for loan losses to gross loans 0.50 0.37
Allowance for loan losses to
non-performing assets 25.40 27.09
Allowance for loan losses to
non-performing loans 25.71 27.59
Full-service customer facilities 15 14
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in Thousands)
(Unaudited)
For the three months ended March 31,
-----------------------------------------------------
2009 2008
------------------------- -------------------------
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
------------------------- -------------------------
Assets
Interest-
earning assets:
Mortgage loans,
net (1) $2,871,127 $46,002 6.41% $2,600,676 $44,912 6.91%
Other loans,
net (1) 114,831 1,374 4.79 132,116 2,399 7.26
------------------------- -------------------------
Total loans,
net 2,985,958 47,376 6.35 2,732,792 47,311 6.92
------------------------- -------------------------
Mortgage-backed
securities 703,343 8,913 5.07 359,491 4,628 5.15
Other
securities 73,298 836 4.56 77,195 1,191 6.17
------------------------- -------------------------
Total
securities 776,641 9,749 5.02 436,686 5,819 5.33
------------------------- -------------------------
Interest-earning
deposits and
federal funds
sold 74,690 43 0.23 39,774 297 2.99
------------------------- -------------------------
Total interest-
earning assets 3,837,289 57,168 5.96 3,209,252 53,427 6.66
------------- -------------
Other assets 184,655 188,827
---------- ----------
Total assets $4,021,944 $3,398,079
---------- ----------
Liabilities and
Equity
Interest-bearing
liabilities:
Deposits:
Savings
accounts $ 392,995 1,578 1.61 $ 360,555 2,174 2.41
NOW accounts 315,775 1,507 1.91 75,145 420 2.24
Money market
accounts 306,708 1,524 1.99 317,000 2,968 3.75
Certificate of
deposit
accounts 1,516,617 14,200 3.75 1,189,497 14,054 4.73
------------------------- -------------------------
Total due to
depositors 2,532,095 18,809 2.97 1,942,197 19,616 4.04
Mortgagors'
escrow
accounts 33,748 18 0.21 30,254 16 0.21
------------------------- -------------------------
Total
deposits 2,565,843 18,827 2.94 1,972,451 19,632 3.98
Borrowed funds 1,062,813 12,285 4.62 1,104,412 13,080 4.74
------------------------- -------------------------
Total
interest-
bearing
liabilities 3,628,656 31,112 3.43 3,076,863 32,712 4.25
------------- -------------
Non interest-
bearing
deposits 67,059 68,730
Other
liabilities 26,685 19,405
---------- ----------
Total
liabilities 3,722,400 3,164,998
Equity 299,544 233,081
---------- ----------
Total
liabilities
and equity $4,021,944 $3,398,079
---------- ----------
Net interest
income / net
interest rate
spread $26,056 2.53% $20,715 2.41%
------------- -------------
Net interest-
earning assets
/ net interest
margin $ 208,633 2.72% $ 132,389 2.58%
---------- ---- ---------- ----
Ratio of
interest-
earning assets
to interest-
bearing
liabilities 1.06X 1.04X
---- ----
(1) Loan interest income includes loan fee income (which includes
net amortization of deferred fees and costs, late charges, and
prepayment penalties) of approximately $0.3 million and
$1.2 million for the three-month periods ended March 31, 2009
and 2008, respectively.