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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):  April 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 April 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 April 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: April 26, 2022

By: 

/s/ SUSAN K. CULLEN

Susan K. Cullen

Senior Executive Vice President and Chief Financial Officer

Flushing Financial 1Q22 Earnings Release

Exhibit 99.1

0

Graphic

John R. Buran, President and CEO Commentary

Flushing Financial Corporation Reports 1Q22 GAAP EPS of $0.58 and Core EPS of $0.61

Record Net Interest Income and Record Low Cost of Funds

UNIONDALE, N.Y., April 26, 2022 (GLOBE NEWSWIRE) - The Company reported first quarter 2022 GAAP EPS of $0.58, down  3.3% YoY, ROAA of 0.91%, and ROAE of 10.83%. For the first quarter, Core EPS of $0.61 increased, 13.0% YoY with ROAA of 0.94% and ROAE of 11.27%.

“Activity in the New York City area is returning to more normal levels and this is seen in our results: 1Q22 loan closings, excluding SBA Paycheck Protection Program loans (“PPP”), up 65% YoY and average noninterest bearing deposits up 17% YoY. The Company is benefiting from the improved economic activity and merger activity as the loan pipeline is at record levels, up 77% YoY and 55% QoQ. Net loans, excluding PPP loans, were flat QoQ due to prepayment speeds remaining elevated as borrowers sought to lock in low rates before the Fed increased short-term rates. Our pricing discipline translated into pipeline yields that are at peak levels for the past 12 months. The Company is in a better position for rising rates than the previous rising rate cycle with a higher percentage of noninterest bearing deposits, lower balances of CDs and borrowings, over $400 million of funding hedges (that will effectively reprice over the next 2 years), and approximately 25% of loans will reprice within one year or 30% including loan hedges.”

- John R. Buran, President and CEO

NIM Expansion QoQ; Pipeline at Record Level; Business Loans Increase. Record net interest income of $63.5 million increased 4.2% YoY and 1.3% QoQ. NIM expanded 18 bps to 3.36% YoY and 7 bps QoQ. Core NIM increased by 25 bps to 3.31% YoY and 10 bps QoQ. The increase in the NIM QoQ was primarily due to a 7 bps improvement in the cost of funds. Period end net loans, excluding PPP, were flat QoQ, with commercial business and other loans increasing 14% annualized. Loan closings, excluding PPP, were up 65% YoY, but repayment speeds remained elevated both QoQ and YoY. With the Federal Reserve increasing short-term rates, we expect refinance volume to slow in 2022. Additionally, we continue to benefit from the merger disruption in our markets as we have hired 30 people, including 12 revenue producers, over the past year from institutions involved with mergers.

Returned 84% of Earnings in 1Q22; Stable Tangible Book Value Per Share. The Company returned 84% of earning in 1Q22 through dividends and share repurchases of 360,000 shares of common stock at an average price of $23.52. Despite rising rates, book value and tangible book value per share were stable QoQ, while TCE/TA1 was 8.05% at March 31, 2022 compared to 8.22% QoQ.

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

1Q22

4Q21

3Q21

2Q21

1Q21

GAAP:

EPS

$0.58

$0.58

$0.81

$0.61

$0.60

ROAA (%)

0.91

0.89

1.26

0.93

0.93

ROAE (%)

10.83

10.77

15.42

11.95

12.29

NIM FTE3 (%)

3.36

3.29

3.34

3.14

3.18

Core:

EPS

$0.61

$0.67

$0.88

$0.73

$0.54

ROAA (%)

0.94

1.04

1.38

1.11

0.83

ROAE (%)

11.27

12.49

16.88

14.27

10.96

Core NIM FTE (%)

3.31

3.21

3.27

3.14

3.06

Efficiency Ratio (%)

58.9

58.7

52.3

53.4

58.6

Credit Quality:

NPAs/Loans&REO (%)

0.21

0.23

0.31

0.26

0.31

ACLs/Loans (%)

0.57

0.56

0.55

0.64

0.67

ACLs/NPLs (%)

266.12

248.66

179.86

242.55

212.87

NCOs/Avg Loans (%)

0.06

(0.04)

0.05

0.17

Balance Sheet:

Avg Loans ($B)

$6.6

$6.6

$6.6

$6.7

$6.7

Avg Dep ($B)

$6.4

$6.5

$6.4

$6.5

$6.3

Book Value/Share

$22.26

$22.26

$21.78

$21.16

$20.65

Tangible BV/Share

$21.61

$21.61

$21.13

$20.51

$19.99

TCE/TA (%)

8.05

8.22

8.04

7.80

7.60

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

1Q22 Highlights

Net interest income increased 1.3% QoQ (as funding costs declined 7 bps), and 4.2% YoY to a record $63.5 million; core net interest income expanded 2.4% QoQ and 6.8% YoY to a record $62.6 million
Net interest margin FTE increased 7 bps QoQ and 18 bps YoY to 3.36%, and core net interest margin FTE increased 10 bps QoQ, and 25 bps YoY to 3.31%; Core NIM expansion QoQ was primarily driven by lower cost of funds
Period end net loans, excluding PPP, were flat QoQ and up 1.2% YoY; loan closings were $329.3 million in 1Q22, down 9.2% QoQ, but up 2.0% YoY (up 64.9% excluding PPP)
Average deposits, including mortgage escrow, decreased 0.8% QoQ, but increased 2.0% YoY to $6.4 billion, with core deposits comprising 86.1% of total average deposits; record average noninterest bearing deposits, up 17.0% YoY
Loan pipeline increased 76.6% YoY to $663.7 million
Provision for credit losses was $1.4 million in 1Q22 exceeding net charge-offs of $0.9 million
NPAs decreased 5.8% QoQ and 33.7% YoY to $14.1 million; criticized and classified loans were up 3.3% QoQ to $59.5 million, representing 0.90% of loans
Tangible Common Equity to Tangible Assets was 8.05% down from 8.22% in 4Q21; the change in AOCI impacted this ratio by 11 bps in 1Q22
Repurchased 360,000 shares at an average price of $23.52; dividends and share repurchases were 84% of net income in 1Q22

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)

1Q22

4Q21

3Q21

2Q21

1Q21

Change

Change

Net Interest Income

$63,479

$62,674

$63,364

$61,039

$60,892

4.2

%

1.3

%

Provision (Benefit) for Credit Losses

1,358

761

(6,927)

(1,598)

2,820

(51.8)

78.4

Noninterest Income (Loss)

1,313

(280)

866

(3,210)

6,311

(79.2)

(568.9)

Noninterest Expense

38,794

38,807

36,345

34,011

38,159

1.7

(0.0)

Income Before Income Taxes

24,640

22,826

34,812

25,416

26,224

(6.0)

7.9

Provision for Income Taxes

6,421

4,743

9,399

6,158

7,185

(10.6)

35.4

Net Income

$18,219

$18,083

$25,413

$19,258

$19,039

(4.3)

0.8

Diluted EPS

$0.58

$0.58

$0.81

$0.61

$0.60

(3.3)

-

Avg. Diluted Shares (000s)

31,254

31,353

31,567

31,677

31,604

(1.1)

(0.3)

Core Net Income1

$18,969

$20,968

$27,829

$22,994

$16,973

11.8

(9.5)

Core EPS1

$0.61

$0.67

$0.88

$0.73

$0.54

13.0

(9.0)

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $63.5 million in 1Q22 (an increase of 4.2% YoY, and 1.3% QoQ), compared to $62.7 million in 4Q21, $63.4 million in 3Q21, $61.0 million in 2Q21, and $60.9 million in 1Q21.

Net interest margin, FTE (“NIM”) of 3.36% increased 18 bps YoY and 7 bps QoQ; PPP loans caused a 3 bps, 3 bps, and 2 bps positive impact on the NIM in 1Q22, 4Q21, and 3Q21, respectively, neutral impact in 2Q21, and a drag of 4 bps in 1Q21
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 (14 bps to the NIM) in 1Q22 compared to $3.1 million (16 bps) in 4Q21, $3.4 million (19 bps) in 3Q21, $1.9 million (10 bps) in 2Q21, and $3.3 million (17 bps) in 1Q21
Excluding the items in the previous bullet, net interest margin was 3.22% in 1Q22 compared to 3.13% in 4Q21, 3.15% in 3Q21, 3.04% in 2Q21, and 3.01% in 1Q21, or an increase of 21 bps YoY and 9 bps QoQ
Net PPP loan fees were $0.9 million in 1Q22, $1.2 million in 4Q21, $1.3 million in 3Q21, $1.2 million in 2Q21, and $0.5 million in 1Q21

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


Graphic

The Company recorded a provision for credit losses of $1.4 million in 1Q22, $0.8 million in 4Q21, and $2.8 million in 1Q21 compared to a benefit for credit losses of $6.9 million in 3Q21 and $1.6 million in 2Q21.

1Q22 provision for credit losses exceed net charge-offs by $0.4 million
Net charge-offs (recoveries) were $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), $0.9 million in 2Q21 (5 bps), and $2.9 million in 1Q21 (17 bps)

Noninterest income (loss) was $1.3 million in 1Q22, $(0.3) million in 4Q21, $0.9 million in 3Q21, $(3.2) million in 2Q21, and $6.3 million in 1Q21.

Noninterest income included net gains (losses) from fair value adjustments of $(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, $(6.5) million or $(0.15) per share, net of tax in 2Q21, and $1.0 million or $0.02 per share, net of tax in 1Q21
Absent all above items and other immaterial adjustments, core noninterest income was $3.1 million in 1Q22, down 33.7% YoY, and 35.8% QoQ
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 $38.8 million in 1Q22 (an increase of 1.7% YoY and flat QoQ) compared to $38.8 million in 4Q21, $36.3 million in 3Q21, $34.0 million in 2Q21, and $38.2 million in 1Q21.

Noninterest expense includes no pre-tax merger benefits or costs for 1Q22 compared to $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, $0.5 million of pre-tax merger benefits ($(0.01) per share, net of tax) in 2Q21, and $1.0 million of pre-tax merger charges ($0.02 per share, net of tax) in 1Q21
Excluding the above items and other immaterial adjustments, core operating expenses were $38.7 million in 1Q22, up 4.3% YoY and flat QoQ
1Q22 includes $4.3 million of seasonal compensation expense compared to $3.3 million a year ago
Included in 4Q21 noninterest expense was a one-time $4.3 million ($0.11 per share, net of tax) of increased compensation and benefits for all employees due to record year of earnings in 2021 and employee performance through the pandemic.
The efficiency ratio was 58.9% in 1Q22, 58.7% in 4Q21, 52.3% in 3Q21, 53.4% in 2Q21, and 58.6% in 1Q21

The provision for income taxes was $6.4 million in 1Q22 compared to $4.7 million in 4Q21, $9.4 million in 3Q21, $6.2 million in 2Q21, and $7.2 million in 1Q21.

The effective tax rate was 26.1% in 1Q22, 20.8% in 4Q21, 27.0% in 3Q21, 24.2% in 2Q21, and 27.4% in 1Q21
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

1Q22

4Q21

3Q21

2Q21

1Q21

Change

Change

Average Loans And Deposits ($MM)

Loans

$6,579

$6,558

$6,633

$6,687

$6,700

(1.8)

%

0.3

%

Deposits

6,410

6,459

6,408

6,511

6,285

2.0

(0.8)

Credit Quality ($000s)

Nonperforming Loans

$14,066

$14,934

$20,217

$17,592

$21,186

(33.6)

%

(5.8)

%

Nonperforming Assets

14,066

14,934

20,217

17,592

21,221

(33.7)

(5.8)

Criticized and Classified Loans

59,548

57,650

68,913

69,161

63,095

(5.6)

3.3

Criticized and Classified Assets

80,527

78,628

89,889

90,135

63,130

27.6

2.4

Allowance for Credit Losses/Loans (%)

0.57

0.56

0.55

0.64

0.67

(10)

bps

1

bps

Capital

Book Value/Share

$22.26

$22.26

$21.78

$21.16

$20.65

7.8

%

-

%

Tangible Book Value/Share

21.61

21.61

21.13

20.51

19.99

8.1

-

Tang. Common Equity/Tang. Assets (%)

8.05

8.22

8.04

7.80

7.60

45

bps

(17)

bps

Leverage Ratio (%)

9.05

8.98

8.83

8.50

8.44

61

7

Average loans were $6.6 billion, a decrease of 1.8% YoY, but an increase of 0.3% QoQ.

Total loan closings were $329.3 million in 1Q22, $362.7 million in 4Q21, $243.9 million in 3Q21, $324.4 million ($308.9 million excluding PPP) in 2Q21, and $322.9 million ($199.7 million excluding PPP) in 1Q21
The loan pipeline reached a new record level of $663.7 million at March 31, 2022 was up 76.6% YoY and 54.6% QoQ
PPP loans held at the end of each quarter totaled $43.2 million at 1Q22, $77.4 million at 4Q21, $130.8 million at 3Q21, $197.3 million at 2Q21, and $251.0 million at 1Q21; forgiven PPP loans were $34.1 million in 1Q22, $53.4 million in 4Q21, $66.5 million in 3Q21, $69.2 million in 2Q21, and $24.1 million in 1Q21; remaining unamortized net PPP fees were $1.1 million at March 31, 2022; The PPP loan program was created by the CARES Act in response to the COVID-19 pandemic
Period end net loans, excluding PPP loans, totaled $6.5 billion, up 1.2% YoY and flat QoQ

Average Deposits totaled $6.4 billion, increasing 2.0% YoY, but down 0.8% QoQ.

Average core deposits (non-CD deposits) increased to 86.1% of total average deposits (including escrow deposits) in 1Q22, compared to 82.5% a year ago
Average noninterest bearing deposits increased 17.0% YoY and 2.5% QoQ and comprised 15.6% of total average deposits (including escrow deposits) in 1Q22 compared to 13.6% a year ago

Credit Quality: Nonperforming loans totaled $14.1 million in 1Q22, $14.9 million in 4Q21, $20.2 million in 3Q21, $17.6 million in 2Q21, and $21.2 million in 1Q21.

Nonperforming assets were down 33.7% YoY and 5.8% QoQ
Criticized and classified loans totaled $59.5 million in 1Q22 (90 bps of loans), $57.7 million in 4Q21 (87 bps of loans), $68.9 million in 3Q21 (104 bps of loans), $69.2 million at 2Q21 (103 bps), and $63.1 million at 1Q21 (94 bps)
Criticized and classified assets are composed of criticized and classified loans, as detailed above, plus one criticized investment security totaling $21.0 million in 1Q22, 4Q21, and 3Q21, which is currently under a principal payment forbearance agreement (interest payments are received)
Loans classified as troubled debt restructured (TDR) totaled $15.1 million in 1Q22 compared to $12.7 million in 4Q21 and $15.2 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 March 31, 2022
Allowance for credit losses were 0.57% of loans at 1Q22 compared to 0.56% at 4Q21 and 0.67% a year ago
Allowance for credit losses were 266.1% of nonperforming loans at 1Q22 compared to 248.7% at 4Q21 and 212.9% a year ago

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


Graphic

Capital: Book value per common share was $22.26 at 1Q22, stable QoQ and up 7.8% from $20.65 YoY; tangible book value per common share, a non-GAAP measure, was $21.61 in 1Q22, flat with 4Q21 and up 8.1% from $19.99 at 1Q21.

The Company paid a dividend of $0.22 per share and repurchased 360,000 shares at an average price of $23.52 in 1Q22
As of the end of 1Q22, 488,187 shares remain subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
Tangible common equity to tangible assets was 8.05% at 1Q22 compared to 8.22% at 4Q21 and 7.60% at 1Q21
The Company and the Bank remain well capitalized under all applicable regulatory requirements
The leverage ratio was 9.05% in 1Q22 compared to 8.98% in 4Q21 and 8.44% in 1Q21

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


Graphic

Conference Call Information And Second 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, April 27, 2022, at 9:30 AM (ET) to discuss the Company’s first quarter 2022 results and strategy.
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
Webcast: https://services.choruscall.com/links/ffic220427.html
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
Replay Access Code: 5300568
The conference call will be simultaneously webcast and archived

Second Quarter 2022 Earnings Release Date:

The Company plans to release Second Quarter 2022 financial results after the market close on July 26, 2022; followed by a conference call at 9:30 AM (ET) on July 27, 2022.

A detailed announcement will be issued prior to the second 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

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands, except per share data)

    

2022

2021

2021

2021

2021

Performance Ratios (1)

 

 

 

 

  

Return on average assets

 

0.91

%  

 

0.89

%  

 

1.26

%  

0.93

%  

 

0.93

%  

Return on average equity

 

10.83

 

10.77

 

15.42

11.95

 

12.29

Yield on average interest-earning assets (2)

 

3.77

 

3.77

 

3.84

3.69

 

3.77

Cost of average interest-bearing liabilities

 

0.50

 

0.58

 

0.61

0.66

 

0.69

Cost of funds

 

0.43

 

0.50

 

0.53

0.57

 

0.61

Net interest rate spread during period (2)

 

3.27

 

3.19

 

3.23

3.03

 

3.08

Net interest margin (2)

 

3.36

 

3.29

 

3.34

3.14

 

3.18

Noninterest expense to average assets

 

1.93

 

1.92

 

1.80

1.65

 

1.87

Efficiency ratio (3)

 

58.87

 

58.66

 

52.28

53.38

 

58.58

Average interest-earning assets to average interest-bearing liabilities

 

1.22

X

 

1.22

X

 

1.21

X

1.19

X

 

1.18

X

Average Balances

 

 

 

 

Total loans, net

$

6,578,680

$

6,558,285

$

6,633,301

$

6,686,888

$

6,700,476

Total interest-earning assets

 

7,570,373

 

7,627,256

 

7,608,317

7,790,174

 

7,667,217

Total assets

 

8,049,470

 

8,090,701

 

8,072,918

8,263,553

 

8,147,714

Total due to depositors

 

5,336,983

 

5,397,802

 

5,406,423

5,495,936

 

5,363,647

Total interest-bearing liabilities

 

6,220,510

 

6,276,221

 

6,310,859

6,532,891

 

6,477,871

Stockholders' equity

 

673,012

 

671,474

 

659,288

644,690

 

619,647

Per Share Data

 

 

  

 

  

 

  

 

  

 

Book value per common share (4)

$

22.26

$

22.26

$

21.78

$

21.16

$

20.65

Tangible book value per common share (5)

$

21.61

$

21.61

$

21.13

$

20.51

$

19.99

Stockholders' Equity

 

 

  

 

  

 

  

 

  

Stockholders' equity

$

675,813

$

679,628

$

668,096

$

655,167

$

639,201

Tangible stockholders' equity

 

656,085

 

659,758

 

648,039

634,959

 

618,839

Consolidated Regulatory Capital Ratios

  

 

  

 

  

 

  

 

  

 

Tier 1 capital

$

731,536

$

726,174

$

711,276

$

697,591

$

679,343

Common equity Tier 1 capital

 

675,434

 

671,494

 

661,340

649,367

 

636,071

Total risk-based capital

 

892,861

 

885,469

 

832,255

823,494

 

806,922

Risk Weighted Assets

6,232,020

6,182,095

6,194,207

6,344,076

6,281,136

Tier 1 leverage capital (well capitalized = 5%)

 

9.05

%  

 

8.98

%  

 

8.83

%  

8.50

%  

 

8.44

%  

Common equity Tier 1 risk-based capital

(well capitalized = 6.5%)

 

10.84

 

10.86

 

10.68

10.24

 

10.13

Tier 1 risk-based capital (well capitalized = 8.0%)

 

11.74

 

11.75

 

11.48

11.00

 

10.82

Total risk-based capital (well capitalized = 10.0%)

 

14.33

 

14.32

 

13.44

12.98

 

12.85

Capital Ratios

 

  

 

  

 

  

  

 

  

Average equity to average assets

 

8.36

%  

 

8.30

%  

 

8.17

%  

7.80

%  

 

7.61

%  

Equity to total assets

 

8.27

 

8.45

 

8.27

8.03

 

7.83

Tangible common equity to tangible assets (6)

 

8.05

 

8.22

 

8.04

7.80

 

7.60

Asset Quality

 

  

 

  

 

  

  

 

  

Nonaccrual loans (7)

$

14,066

$

14,933

$

18,292

$

17,391

$

18,604

Nonperforming loans

 

14,066

 

14,933

 

20,217

17,592

 

21,186

Nonperforming assets

 

14,066

 

14,933

 

20,217

17,592

 

21,221

Net charge-offs (recoveries)

 

935

 

(29)

 

(619)

902

 

2,865

Asset Quality Ratios

 

  

 

  

 

  

  

 

  

Nonperforming loans to gross loans

 

0.21

%  

 

0.23

%  

 

0.31

%  

0.26

%  

 

0.31

%  

Nonperforming assets to total assets

 

0.17

 

0.19

 

0.25

0.22

 

0.26

Allowance for credit losses to gross loans

 

0.57

 

0.56

 

0.55

0.64

 

0.67

Allowance for credit losses to nonperforming assets

 

266.12

 

248.66

 

179.86

242.55

 

212.52

Allowance for credit losses to nonperforming loans

 

266.12

 

248.66

 

179.86

242.55

 

212.87

Net charge-offs (recoveries) to average loans

0.06

(0.04)

0.05

0.17

Full-service customer facilities

 

24

 

24

 

24

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

March 31, 

December 31,

September 30,

June 30,

March 31, 

(In thousands, except per share data)

2022

2021

2021

2021

2021

Interest and Dividend Income

  

Interest and fees on loans

$

67,516

$

68,113

$

69,198

$

67,999

$

69,021

Interest and dividends on securities:

 

 

 

 

 

Interest

 

3,745

 

3,536

 

3,706

 

3,685

 

3,072

Dividends

 

8

 

7

 

7

 

7

 

8

Other interest income

 

51

 

74

 

42

 

51

 

36

Total interest and dividend income

 

71,320

 

71,730

 

72,953

 

71,742

 

72,137

Interest Expense

 

 

 

 

 

Deposits

 

3,408

 

3,975

 

4,705

 

5,539

 

6,105

Other interest expense

 

4,433

 

5,081

 

4,884

 

5,164

 

5,140

Total interest expense

 

7,841

 

9,056

 

9,589

 

10,703

 

11,245

Net Interest Income

 

63,479

 

62,674

 

63,364

 

61,039

 

60,892

Provision (benefit) for credit losses

 

1,358

 

761

 

(6,927)

 

(1,598)

 

2,820

Net Interest Income After Provision (Benefit)

for Credit Losses

 

62,121

 

61,913

 

70,291

 

62,637

 

58,072

Noninterest Income (Loss)

 

 

 

 

 

Banking services fee income

 

1,374

 

1,142

 

865

 

1,233

 

2,725

Net gain (loss) on sale of securities

 

 

 

(10)

 

123

 

Net gain on sale of loans

 

 

46

 

131

 

127

 

31

Net gain on disposition of assets

 

 

 

 

 

621

Net gain (loss) from fair value adjustments

 

(1,809)

 

(5,140)

 

(2,289)

 

(6,548)

 

982

Federal Home Loan Bank of New York stock dividends

 

397

 

417

 

491

 

500

 

689

Bank owned life insurance

 

1,114

 

1,023

 

1,015

 

1,009

 

997

Other income

 

237

 

2,232

 

663

 

346

 

266

Total noninterest income (loss)

 

1,313

 

(280)

 

866

 

(3,210)

 

6,311

Noninterest Expense

 

 

 

 

 

Salaries and employee benefits

 

23,649

 

25,223

 

20,544

 

19,879

 

22,664

Occupancy and equipment

 

3,604

 

3,579

 

3,534

 

3,522

 

3,367

Professional services

 

2,222

 

1,152

 

1,899

 

1,988

 

2,400

FDIC deposit insurance

 

420

 

391

 

618

 

729

 

1,213

Data processing

 

1,424

 

1,757

 

1,759

 

1,419

 

2,109

Depreciation and amortization

 

1,460

 

1,521

 

1,627

 

1,638

 

1,639

Other real estate owned/foreclosure (recoveries) expense

 

84

 

129

 

182

 

22

 

(10)

Other operating expenses

 

5,931

 

5,055

 

6,182

 

4,814

 

4,777

Total noninterest expense

 

38,794

 

38,807

 

36,345

 

34,011

 

38,159

Income Before Provision for Income Taxes

 

24,640

 

22,826

 

34,812

 

25,416

 

26,224

Provision for Income Taxes

 

6,421

 

4,743

 

9,399

 

6,158

 

7,185

Net Income

$

18,219

$

18,083

$

25,413

$

19,258

$

19,039

Basic earnings per common share

$

0.58

$

0.58

$

0.81

$

0.61

$

0.60

Diluted earnings per common share

$

0.58

$

0.58

$

0.81

$

0.61

$

0.60

Dividends per common share

$

0.22

$

0.21

$

0.21

$

0.21

$

0.21

Basic average shares

 

31,254

 

31,353

 

31,567

 

31,677

 

31,604

Diluted average shares

 

31,254

 

31,353

 

31,567

 

31,677

 

31,604

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


Graphic

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

March 31, 

    

December 31,

    

September 30,

    

June 30,

    

March 31, 

(Dollars in thousands)

2022

2021

2021

2021

2021

ASSETS

 

  

 

  

 

  

 

  

 

  

Cash and due from banks

$

186,407

$

81,723

$

178,598

$

145,971

$

174,420

Securities held-to-maturity:

 

 

 

 

 

Mortgage-backed securities

 

7,890

 

7,894

 

7,899

 

7,904

 

7,909

Other securities

 

66,327

 

49,974

 

49,989

 

49,986

 

49,912

Securities available for sale:

 

 

 

Mortgage-backed securities

 

553,828

 

572,184

 

584,145

 

596,661

 

518,781

Other securities

 

286,041

 

205,052

 

212,654

 

224,784

 

242,440

Loans

6,607,264

6,638,105

6,630,354

6,718,806

6,745,316

Allowance for credit losses

 

(37,433)

 

(37,135)

 

(36,363)

 

(42,670)

 

(45,099)

Net loans

 

6,569,831

 

6,600,970

 

6,593,991

 

6,676,136

 

6,700,217

Interest and dividends receivable

 

37,308

 

38,698

 

40,912

 

43,803

 

44,941

Bank premises and equipment, net

 

22,752

 

23,338

 

24,018

 

26,438

 

27,498

Federal Home Loan Bank of New York stock

 

33,891

 

35,937

 

36,158

 

41,630

 

41,498

Bank owned life insurance

 

211,867

 

210,754

 

184,730

 

183,715

 

182,707

Goodwill

 

17,636

 

17,636

 

17,636

 

17,636

 

17,636

Core deposit intangibles

2,420

2,562

2,708

2,859

3,013

Right of use asset

 

48,475

 

50,200

 

50,155

 

51,972

 

53,802

Other assets

 

125,160

 

148,989

 

93,741

 

89,850

 

94,410

Total assets

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

$

8,159,184

LIABILITIES

 

  

 

  

 

  

 

  

 

  

Deposits

$

6,373,400

$

6,333,532

$

6,421,391

$

6,298,790

$

6,326,577

Mortgagors' escrow deposits

79,495

51,913

 

67,207

 

58,230

 

74,348

Borrowed funds

 

877,122

 

815,544

 

752,925

 

971,827

 

948,920

Operating lease liability

 

52,292

 

54,155

 

54,239

 

56,151

 

58,080

Other liabilities

 

111,711

 

111,139

 

113,476

 

119,180

 

112,058

Total liabilities

 

7,494,020

 

7,366,283

 

7,409,238

 

7,504,178

 

7,519,983

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

 

261,837

 

263,375

 

262,009

 

260,958

 

260,019

Treasury stock

 

(79,834)

 

(75,293)

 

(71,738)

 

(65,335)

 

(65,479)

Retained earnings

 

508,973

 

497,889

 

486,418

 

467,620

 

455,023

Accumulated other comprehensive loss, net of taxes

 

(15,504)

 

(6,684)

 

(8,934)

 

(8,417)

 

(10,703)

Total stockholders' equity

 

675,813

 

679,628

 

668,096

 

655,167

 

639,201

Total liabilities and stockholders' equity

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

$

8,159,184

(In thousands)

Issued shares

34,088

34,088

34,088

34,088

34,088

Outstanding shares

30,367

30,526

30,676

30,962

30,954

Treasury shares

3,721

3,561

3,412

3,126

3,133

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

March 31, 

December 31,

September 30,

June 30,

March 31, 

(In thousands)

2022

2021

2021

2021

2021

Interest-earning Assets:

 

  

  

  

  

  

Mortgage loans, net

$

5,152,070

$

5,140,233

$

5,158,213

$

5,130,400

$

5,155,975

Other loans, net

 

1,426,610

 

1,418,052

 

1,475,088

 

1,556,488

 

1,544,501

Total loans, net

 

6,578,680

 

6,558,285

 

6,633,301

 

6,686,888

 

6,700,476

Taxable securities:

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

580,670

 

595,538

 

590,732

 

578,134

 

433,917

Other securities

 

226,744

 

207,482

 

217,763

 

232,020

 

300,828

Total taxable securities

 

807,414

 

803,020

 

808,495

 

810,154

 

734,745

Tax-exempt securities:

 

  

 

  

 

  

 

  

 

  

Other securities

 

57,611

 

50,834

 

50,832

 

50,830

 

50,828

Total tax-exempt securities

 

57,611

 

50,834

 

50,832

 

50,830

 

50,828

Interest-earning deposits and federal funds sold

 

126,668

 

215,117

 

115,689

 

242,302

 

181,168

Total interest-earning assets

 

7,570,373

 

7,627,256

 

7,608,317

 

7,790,174

 

7,667,217

Other assets

 

479,097

 

463,445

 

464,601

 

473,379

 

480,497

Total assets

$

8,049,470

$

8,090,701

$

8,072,918

$

8,263,553

$

8,147,714

Interest-bearing Liabilities:

 

  

 

  

 

  

 

  

 

  

Deposits:

 

  

 

  

 

  

 

  

 

  

Savings accounts

$

156,592

$

154,471

$

153,120

$

153,113

$

170,079

NOW accounts

 

2,036,914

 

2,115,619

 

2,107,866

 

2,255,581

 

2,185,384

Money market accounts

 

2,253,630

 

2,177,928

 

2,107,473

 

2,043,257

 

1,905,543

Certificate of deposit accounts

 

889,847

 

949,784

 

1,037,964

 

1,043,985

 

1,102,641

Total due to depositors

 

5,336,983

 

5,397,802

 

5,406,423

 

5,495,936

 

5,363,647

Mortgagors' escrow accounts

 

71,509

 

84,617

 

68,562

 

91,545

 

65,372

Total interest-bearing deposits

 

5,408,492

 

5,482,419

 

5,474,985

 

5,587,481

 

5,429,019

Borrowings

 

812,018

 

793,802

 

835,874

 

945,410

 

1,048,852

Total interest-bearing liabilities

 

6,220,510

 

6,276,221

 

6,310,859

 

6,532,891

 

6,477,871

Noninterest-bearing demand deposits

 

1,001,571

 

976,803

 

933,443

 

923,220

 

856,052

Other liabilities

 

154,377

 

166,203

 

169,328

 

162,752

 

194,144

Total liabilities

 

7,376,458

 

7,419,227

 

7,413,630

 

7,618,863

 

7,528,067

Equity

 

673,012

 

671,474

 

659,288

 

644,690

 

619,647

Total liabilities and equity

$

8,049,470

$

8,090,701

$

8,072,918

$

8,263,553

$

8,147,714

Net interest-earning assets

$

1,349,863

$

1,351,035

$

1,297,458

$

1,257,283

$

1,189,346

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

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

2022

2021

2021

2021

2021

Interest Income:

 

  

  

  

  

  

Mortgage loans, net

$

53,970

$

54,260

$

55,114

$

52,987

$

55,219

Other loans, net

 

13,546

 

13,853

 

14,084

 

15,012

 

13,802

Total loans, net

 

67,516

 

68,113

 

69,198

 

67,999

 

69,021

Taxable securities:

 

  

 

  

 

  

 

  

 

  

Mortgage-backed securities

 

2,167

 

2,125

 

2,279

 

2,233

 

1,698

Other securities

 

1,119

 

993

 

1,008

 

1,037

 

963

Total taxable securities

 

3,286

 

3,118

 

3,287

 

3,270

 

2,661

Tax-exempt securities:

 

  

 

  

 

  

 

  

 

  

Other securities

 

591

 

538

 

539

 

535

 

530

Total tax-exempt securities

 

591

 

538

 

539

 

535

 

530

Interest-earning deposits and

federal funds sold

 

51

 

74

 

42

 

51

 

36

Total interest-earning assets

 

71,444

 

71,843

 

73,066

 

71,855

 

72,248

Interest Expense:

 

  

 

  

 

  

 

  

 

  

Deposits:

 

  

 

  

 

  

 

  

 

  

Savings accounts

$

49

$

53

$

61

$

66

$

75

NOW accounts

 

793

 

1,021

 

1,227

 

1,499

 

1,706

Money market accounts

 

1,275

 

1,428

 

1,683

 

2,060

 

2,100

Certificate of deposit accounts

 

1,289

 

1,471

 

1,734

 

1,913

 

2,222

Total due to depositors

 

3,406

 

3,973

 

4,705

 

5,538

 

6,103

Mortgagors' escrow accounts

 

2

 

2

 

 

1

 

2

Total interest-bearing deposits

 

3,408

 

3,975

 

4,705

 

5,539

 

6,105

Borrowings

 

4,433

 

5,081

 

4,884

 

5,164

 

5,140

Total interest-bearing liabilities

 

7,841

 

9,056

 

9,589

 

10,703

 

11,245

Net interest income- tax equivalent

$

63,603

$

62,787

$

63,477

$

61,152

$

61,003

Included in net interest income above:

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

$

1,716

$

1,497

$

2,136

$

2,046

$

948

Net gains/(losses) from fair value adjustments

on qualifying hedges included in loan

interest income

(129)

 

1,122

 

194

 

(664)

 

1,427

Purchase accounting adjustments

1,058

 

462

 

1,100

 

565

 

922

Interest-earning Assets Yields:

 

  

  

  

  

  

Mortgage loans, net

4.19

%  

4.22

%  

4.27

%  

4.13

%  

4.28

%  

Other loans, net

 

3.80

 

3.91

 

3.82

 

3.86

 

3.57

Total loans, net

 

4.11

 

4.15

 

4.17

 

4.07

 

4.12

Taxable securities:

 

  

 

  

  

  

  

Mortgage-backed securities

 

1.49

 

1.43

 

1.54

 

1.54

 

1.57

Other securities

 

1.97

 

1.91

 

1.85

 

1.79

 

1.28

Total taxable securities

 

1.63

 

1.55

 

1.63

 

1.61

 

1.45

Tax-exempt securities: (1)

 

  

 

  

  

  

  

Other securities

 

4.10

 

4.23

 

4.24

 

4.21

 

4.17

Total tax-exempt securities

 

4.10

 

4.23

 

4.24

 

4.21

 

4.17

Interest-earning deposits and

federal funds sold

 

0.16

 

0.14

 

0.15

 

0.08

 

0.08

Total interest-earning assets

 

3.77

%  

3.77

%  

3.84

%  

3.69

%  

3.77

%  

Interest-bearing Liabilities Yields:

 

  

 

  

  

 

  

 

  

Deposits:

 

  

 

  

  

 

  

 

  

Savings accounts

0.13

%  

0.14

%  

0.16

%  

0.17

%  

0.18

%  

NOW accounts

 

0.16

 

0.19

 

0.23

 

0.27

 

0.31

Money market accounts

 

0.23

 

0.26

 

0.32

 

0.40

 

0.44

Certificate of deposit accounts

 

0.58

 

0.62

 

0.67

 

0.73

 

0.81

Total due to depositors

 

0.26

 

0.29

 

0.35

 

0.40

 

0.46

Mortgagors' escrow accounts

 

0.01

 

0.01

 

 

 

0.01

Total interest-bearing deposits

 

0.25

 

0.29

 

0.34

 

0.40

 

0.45

Borrowings

 

2.18

 

2.56

 

2.34

 

2.18

 

1.96

Total interest-bearing liabilities

 

0.50

%  

0.58

%  

0.61

%  

0.66

%  

0.69

%  

Net interest rate spread (tax equivalent)

3.27

%  

3.19

%  

3.23

%  

3.03

%  

3.08

%  

Net interest margin (tax equivalent)

3.36

%  

3.29

%  

3.34

%  

3.14

%  

3.18

%  

Ratio of interest-earning assets to

interest-bearing liabilities

1.22

X

1.22

X

1.21

X

1.19

X

1.18

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

March 2022 vs.

March 2022 vs.

March 31, 

December 31,

September 30,

June 30,

March 31, 

December 2021

March 2021

(Dollars in thousands)

    

2022

2021

2021

2021

2021

    

% Change

    

% Change

Noninterest bearing

$

1,041,027

$

967,621

$

941,259

$

945,491

$

917,189

7.6

%

13.5

%

Interest bearing:

  

  

  

  

  

  

  

 

Certificate of deposit accounts

 

886,317

 

946,575

 

1,040,098

 

1,020,615

 

1,070,595

 

(6.4)

 

(17.2)

Savings accounts

 

158,542

 

156,554

 

152,306

 

152,931

 

170,272

 

1.3

 

(6.9)

Money market accounts

 

2,362,390

 

2,342,003

 

2,152,085

 

2,057,188

 

1,990,656

 

0.9

 

18.7

NOW accounts

 

1,925,124

 

1,920,779

 

2,135,643

 

2,122,565

 

2,177,865

 

0.2

 

(11.6)

Total interest-bearing deposits

 

5,332,373

 

5,365,911

 

5,480,132

 

5,353,299

 

5,409,388

 

(0.6)

 

(1.4)

Total deposits

$

6,373,400

$

6,333,532

$

6,421,391

$

6,298,790

$

6,326,577

0.6

%  

 

0.7

%

Loan Composition

March 2022 vs.

March 2022 vs.

March 31, 

December 31,

September 30,

June 30,

March 31, 

December 2021

March 2021

(Dollars in thousands)

    

2022

2021

2021

2021

2021

    

% Change

    

% Change

Multifamily residential

$

2,500,570

$

2,517,026

$

2,498,980

$

2,542,010

$

2,525,967

(0.7)

%  

 

(1.0)

%  

Commercial real estate

 

1,764,927

 

1,775,629

 

1,745,855

 

1,726,895

 

1,721,702

(0.6)

 

2.5

One-to-four family ― mixed-use property

 

563,679

 

571,795

 

579,100

 

582,211

 

595,431

(1.4)

 

(5.3)

One-to-four family ― residential

 

248,226

 

268,255

 

280,343

 

288,652

 

239,391

(7.5)

 

3.7

Co-operative apartments

 

8,248

 

8,316

 

7,804

 

7,883

 

7,965

(0.8)

 

3.6

Construction

 

68,488

 

59,761

 

71,464

 

62,802

 

61,528

14.6

 

11.3

Mortgage Loans

5,154,138

5,200,782

5,183,546

5,210,453

5,151,984

(0.9)

 

Small Business Administration (1)

 

59,331

 

93,811

 

148,855

 

215,158

 

267,120

(36.8)

 

(77.8)

Commercial business and other

 

1,387,155

 

1,339,273

 

1,294,688

 

1,291,526

 

1,326,657

3.6

 

4.6

Nonmortgage loans

1,446,486

1,433,084

1,443,543

1,506,684

1,593,777

0.9

 

(9.2)

Net unamortized premiums and unearned loan fees (2)

 

6,640

 

4,239

 

3,265

 

1,669

 

(445)

56.6

 

(1,592.1)

Allowance for credit losses

 

(37,433)

 

(37,135)

 

(36,363)

 

(42,670)

 

(45,099)

0.8

 

(17.0)

Net loans

$

6,569,831

$

6,600,970

$

6,593,991

$

6,676,136

$

6,700,217

(0.5)

%  

 

(1.9)

%  


(1) Includes $43.2 million, $77.4 million, $130.8 million, $197.3 million, and $251.0 million of PPP loans at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, respectively.

(2) Includes $6.9 million, $8.0 million, $8.6 million, $9.7 million, and $10.5 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 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

March 31, 

December 31,

September 30,

June 30,

March 31, 

(In thousands)

    

2022

2021

2021

2021

2021

Multifamily residential

$

98,180

$

79,648

$

41,850

$

66,913

$

58,553

Commercial real estate

45,102

64,916

48,447

37,963

17,156

One-to-four family – mixed-use property

 

8,498

 

12,440

 

12,823

 

7,135

 

8,712

One-to-four family – residential

 

9,261

 

5,162

 

2,761

 

59,494

 

3,131

Co-operative apartments

 

 

413

 

 

 

Construction

 

8,802

 

17,033

 

8,687

 

5,281

 

7,123

Mortgage Loans

169,843

179,612

114,568

176,786

94,675

Small Business Administration (1)

 

 

270

 

415

 

17,585

 

125,093

Commercial business and other

 

159,476

 

182,858

 

128,946

 

130,036

 

103,118

Nonmortgage Loans

159,476

183,128

129,361

147,621

228,211

Total Closings

$

329,319

$

362,740

$

243,929

$

324,407

$

322,886


(1) Includes $15.5 million and $123.2 million of PPP closings for the three months ended June 30, 2021 and March 31, 2021, respectively.

Weighted Average Rate on Loan Closings

For the three months ended

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

Loan type

 

2022

2021

2021

2021

2021

Mortgage loans

 

3.61

%  

3.77

%  

3.80

%  

3.53

%  

3.47

%  

Nonmortgage loans

 

3.27

3.24

3.49

3.23

2.26

Total loans

 

3.44

%  

3.51

%  

3.64

%  

3.39

%  

2.62

%  

Excluding PPP loans

 

3.44

%  

3.51

%  

3.64

%  

3.51

%  

3.62

%  

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

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

    

2022

2021

2021

2021

2021

Allowance for credit losses

Beginning balances

$

37,135

$

36,363

$

42,670

$

45,099

$

45,153

Net loan charge-off (recoveries):

Multifamily residential

    

    

    

    

    

33

    

Commercial real estate

    

 

    

 

    

 

    

 

    

 

64

    

One-to-four family – mixed-use property

    

 

    

 

1

    

 

(123)

    

 

3

    

 

19

    

One-to-four family – residential

    

 

(2)

    

 

(3)

    

 

(147)

    

 

(2)

    

 

(5)

    

Small Business Administration

    

 

1,015

    

 

(7)

    

 

(8)

    

 

(9)

    

 

(10)

    

Taxi medallion

    

 

(12)

    

 

    

 

(1,235)

    

(222)

    

 

2,758

    

Commercial business and other

    

 

(66)

    

 

(20)

    

 

894

    

 

1,132

    

 

6

    

Total

    

935

(29)

(619)

902

2,865

Provision (benefit) for loan losses

1,233

743

(6,926)

(1,527)

2,811

Ending balance

$

37,433

$

37,135

$

36,363

$

42,670

$

45,099

    

 

  

 

  

 

  

 

  

 

  

Gross charge-offs

$

1,036

$

7

$

1,019

$

1,186

$

2,922

Gross recoveries

101

36

1,638

284

57

Allowance for credit losses to gross loans

0.57

%

0.56

%

0.55

%

0.64

%

0.67

%

Net loan charge-offs (recoveries) to average loans

0.06

(0.04)

0.05

0.17

Nonperforming Assets

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

    

2022

2021

2021

2021

2021

Loans 90 Days Or More Past Due and Still Accruing:

 

  

 

  

 

  

 

  

 

  

Multifamily residential

$

$

$

$

201

$

201

Construction

873

2,381

Commercial business and other

1,052

Total

 

 

 

1,925

 

201

 

2,582

 

  

 

  

 

  

 

  

 

  

Nonaccrual Loans:

 

  

 

  

 

  

 

  

 

  

Multifamily residential

 

3,414

 

2,431

 

4,192

 

4,669

 

4,338

Commercial real estate

 

5

 

613

 

613

 

8

 

8

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

 

790

 

1,309

 

2,204

 

2,309

 

2,355

One-to-four family - residential

 

7,387

 

7,725

 

7,807

 

6,940

 

7,335

Small Business Administration

 

937

 

937

 

976

 

976

 

1,151

Commercial business and other(1)

 

1,533

 

1,918

 

2,500

 

2,489

 

3,417

Total

 

14,066

 

14,933

 

18,292

 

17,391

 

18,604

 

  

 

  

 

  

 

  

 

  

Total Nonperforming Loans (NPLs)

 

14,066

 

14,933

 

20,217

 

17,592

 

21,186

 

  

 

  

 

  

 

  

 

  

Other Nonperforming Assets:

 

  

 

  

 

  

 

  

 

  

Other asset acquired through foreclosure

 

 

 

 

 

35

Total

 

 

 

 

 

35

 

  

 

  

 

  

 

  

 

  

Total Nonperforming Assets

$

14,066

$

14,933

$

20,217

$

17,592

$

21,221

 

  

 

  

 

  

 

  

 

  

Nonperforming Assets to Total Assets

 

0.17

%  

 

0.19

%  

 

0.25

%  

 

0.22

%  

 

0.26

%  

Allowance for Credit Losses to NPLs

 

266.1

%  

 

248.7

%  

 

179.9

%  

 

242.6

%  

 

212.9

%  


(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 1Q22, 4Q21,  3Q21, 2Q21, and 1Q21; nonaccrual performing TDR commercial business loans totaling $2.8 million in 1Q22, less than $0.1 million in 4Q21, and $2.2 million each in 2Q21 and 1Q21.

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

(Dollars in thousands,

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

except per share data)

2022

2021

2021

2021

2021

GAAP income before income taxes

$

24,640

$

22,826

$

34,812

$

25,416

$

26,224

Net (gain) loss from fair value adjustments

(Noninterest income (loss))

 

1,809

 

5,140

 

2,289

 

6,548

 

(982)

Net (gain) loss on sale of securities

(Noninterest income (loss))

 

 

 

10

 

(123)

 

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)

 

129

 

(1,122)

 

(194)

 

664

 

(1,427)

Net amortization of purchase accounting adjustments (Various)

(924)

(324)

(958)

(418)

(789)

Merger (benefit) expense (Various)

 

 

(17)

 

2,096

 

(490)

 

973

Core income before taxes

 

25,654

 

26,503

 

38,055

 

31,597

 

23,378

Provision for income taxes for core income

 

6,685

 

5,535

 

10,226

 

8,603

 

6,405

Core net income

$

18,969

$

20,968

$

27,829

$

22,994

$

16,973

GAAP diluted earnings per common share

$

0.58

$

0.58

$

0.81

$

0.61

$

0.60

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

 

0.04

 

0.13

 

0.05

 

0.15

 

(0.02)

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

 

(0.03)

Net amortization of purchase accounting

adjustments, net of tax

(0.02)

(0.01)

(0.02)

(0.01)

(0.02)

Merger (benefit) expense, net of tax

 

 

 

0.05

 

(0.01)

 

0.02

NYS tax change

 

 

 

(0.02)

 

Core diluted earnings per common share(1)

$

0.61

$

0.67

$

0.88

$

0.73

$

0.54

Core net income, as calculated above

$

18,969

$

20,968

$

27,829

$

22,994

$

16,973

Average assets

 

8,049,470

 

8,090,701

 

8,072,918

 

8,263,553

 

8,147,714

Average equity

 

673,012

 

671,474

 

659,288

 

644,690

 

619,647

Core return on average assets(2)

 

0.94

%  

 

1.04

%  

 

1.38

%  

 

1.11

%  

 

0.83

%  

Core return on average equity(2)

 

11.27

%  

 

12.49

%  

 

16.88

%  

 

14.27

%  

 

10.96

%  


(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

    

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

2022

    

2021

    

2021

    

2021

    

2021

GAAP Net interest income

$

63,479

$

62,674

$

63,364

$

61,039

$

60,892

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

129

(1,122)

(194)

664

(1,427)

Net amortization of purchase accounting adjustments

(1,058)

(462)

(1,100)

(565)

(922)

Core Net interest income

$

62,550

$

61,090

$

62,070

$

61,138

$

58,543

GAAP Noninterest income (loss)

$

1,313

$

(280)

$

866

$

(3,210)

$

6,311

Net (gain) loss from fair value adjustments

1,809

5,140

2,289

6,548

(982)

Net gain (loss) on sale of securities

10

(123)

Net gain on sale of assets

(621)

Core Noninterest income

$

3,122

$

4,860

$

3,165

$

3,215

$

4,708

GAAP Noninterest expense

$

38,794

$

38,807

$

36,345

$

34,011

$

38,159

Net amortization of purchase accounting adjustments

(134)

(138)

(142)

(147)

(133)

Merger expense (benefit)

17

(2,096)

490

(973)

Core Noninterest expense

$

38,660

$

38,686

$

34,107

$

34,354

$

37,053

Net interest income

$

63,479

$

62,674

$

63,364

$

61,039

$

60,892

Noninterest income (loss)

1,313

(280)

866

(3,210)

6,311

Noninterest expense

(38,794)

(38,807)

(36,345)

(34,011)

(38,159)

Pre-provision pre-tax net revenue

$

25,998

$

23,587

$

27,885

$

23,818

$

29,044

Core:

Net interest income

$

62,550

$

61,090

$

62,070

$

61,138

$

58,543

Noninterest income

3,122

4,860

3,165

3,215

4,708

Noninterest expense

(38,660)

(38,686)

(34,107)

(34,354)

(37,053)

Pre-provision pre-tax net revenue

$

27,012

$

27,264

$

31,128

$

29,999

$

26,198

Efficiency Ratio

58.9

%

58.7

%

52.3

%

53.4

%

58.6

%

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

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

2022

2021

2021

2021

2021

GAAP net interest income

$

63,479

$

62,674

$

63,364

$

61,039

$

60,892

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

 

129

 

(1,122)

 

(194)

 

664

 

(1,427)

Net amortization of purchase accounting adjustments

(1,058)

(462)

(1,100)

(565)

(922)

Tax equivalent adjustment

124

113

113

113

111

Core net interest income FTE

$

62,674

$

61,203

$

62,183

$

61,251

$

58,654

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

 

(1,716)

 

(1,497)

 

(2,136)

 

(2,046)

 

(948)

Base net interest income FTE

$

60,958

$

59,706

$

60,047

$

59,205

$

57,706

Total average interest-earning assets (1)

$

7,577,053

$

7,634,601

$

7,616,332

$

7,799,176

$

7,676,833

Core net interest margin FTE

 

3.31

%  

 

3.21

%  

 

3.27

%  

 

3.14

%  

 

3.06

%  

Base net interest margin FTE

 

3.22

%  

 

3.13

%  

 

3.15

%  

 

3.04

%  

 

3.01

%  

GAAP interest income on total loans, net

$

67,516

$

68,113

$

69,198

$

67,999

$

69,021

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

 

129

 

(1,122)

 

(194)

 

664

 

(1,427)

Net amortization of purchase accounting adjustments

(1,117)

(535)

(1,126)

(624)

(728)

Core interest income on total loans, net

$

66,528

$

66,456

$

67,878

$

68,039

$

66,866

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

 

(1,716)

 

(1,497)

 

(2,135)

 

(2,046)

 

(947)

Base interest income on total loans, net

$

64,812

$

64,959

$

65,743

$

65,993

$

65,919

Average total loans, net (1)

$

6,586,253

$

6,566,654

$

6,642,434

$

6,697,103

$

6,711,446

Core yield on total loans

 

4.04

%  

 

4.05

%  

 

4.09

%  

 

4.06

%  

 

3.99

%  

Base yield on total loans

 

3.94

%  

 

3.96

%  

 

3.96

%  

 

3.94

%  

 

3.93

%  


(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)

    

March 31, 

December 31,

September 30,

June 30,

March 31, 

(Dollars in thousands)

2022

2021

2021

2021

2021

Total Equity

$

675,813

$

679,628

$

668,096

$

655,167

$

639,201

Less:

 

  

 

  

 

  

 

  

 

  

Goodwill

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

Core deposit Intangibles

(2,420)

(2,562)

(2,708)

(2,859)

(3,013)

Intangible deferred tax liabilities

 

328

328

287

287

287

Tangible Stockholders' Common Equity

$

656,085

$

659,758

$

648,039

$

634,959

$

618,839

Total Assets

$

8,169,833

$

8,045,911

$

8,077,334

$

8,159,345

$

8,159,184

Less:

 

  

 

  

 

  

 

  

 

  

Goodwill

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

 

(17,636)

Core deposit Intangibles

(2,420)

(2,562)

(2,708)

(2,859)

(3,013)

Intangible deferred tax liabilities

 

328

 

328

 

287

 

287

 

287

Tangible Assets

$

8,150,105

$

8,026,041

$

8,057,277

$

8,139,137

$

8,138,822

Tangible Stockholders' Common Equity to Tangible Assets

 

8.05

%  

 

8.22

%  

 

8.04

%  

 

7.80

%  

 

7.60

%

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