News Details

Flushing Financial Corporation Reports GAAP Diluted EPS of $0.45, an Increase of 21.6% QoQ; Pristine Credit Quality Continues with Classified Assets at Lowest Level Since 2008

Jan 30, 2020 5:45 PM

FOURTH QUARTER 20191 HIGHLIGHTS

  • GAAP diluted EPS was $0.45, up 21.6% QoQ and 2.3% YoY
  • Core diluted EPS was $0.41, down 14.6% QoQ and 24.1% YoY
  • Net interest margin was 2.48%, up 11bps QoQ and down 9bps YoY
  • Core net interest margin was 2.33%, unchanged QoQ and down 16bps YoY
  • GAAP net interest income of $41.2 million, up 5.7% QoQ and 1.3% YoY
  • Core net interest income of $40.1 million, down 0.2% QoQ and 1.2% YoY
  • GAAP and core ROAE were 9.1% and 8.4%, respectively, compared with 7.6% and 9.8%, respectively in 3Q19
  • GAAP and core ROAA were 0.7% and 0.7%, respectively, compared with 0.6% and 0.8%, respectively in 3Q19

FULL YEAR 20191 HIGHLIGHTS

  • GAAP diluted EPS was $1.44, down 25.0% YoY
  • Core diluted EPS was $1.65, down 14.9% YoY
  • Net interest margin was 2.47%, down 25bps YoY
  • Core net interest margin was 2.40%, down 20bps YoY
  • GAAP net interest income of $161.9 million, down 3.3% YoY
  • Core net interest income of $163.6 million, down 2.3% YoY
  • GAAP and core ROAE were 7.4% and 8.4%, respectively, compared with 10.3% and 10.4%, respectively in 2018
  • GAAP and core ROAA were 0.6% and 0.7%, respectively, compared with 0.9% and 0.9%, respectively in 2018
  • Record C&I originations totaling $609.2 million
  • Classified assets totaled $24.6 million, down 47.1% YoY

UNIONDALE, N.Y., Jan. 30, 2020 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC), the parent holding company for Flushing Bank (the “Bank”), today announced its financial results for the fourth quarter and fiscal year ended December 31, 2019.

John R. Buran, President and Chief Executive Officer, stated, “We are pleased to report GAAP EPS of $0.45, an increase of 22% QoQ.  Net interest income increased 6% from 3Q19, as the net interest margin improved by 11bps.  The improvement in the net interest margin was driven by an 11bps decline in the cost of funds. The cost of funds has shown continuous improvement throughout the quarter. Concurrently, loan portfolio yields increased four basis points QoQ, as the negative effects on our floating rate C&I portfolio were recorded early in the quarter following the Fed decreasing rates. Our hedging strategies contributed positively to both net interest and non-interest income as the yield curve exhibited a small upward slope. We continue to see additional opportunities for repricing retail CDs downward as we have approximately $1 billion maturing in 2020, at an average cost of 2.20%, compared to the current average cost of new deposits of 1.53%. As a result of the above, our core net interest margin for 4Q19 was unchanged from 3Q19. Our strong credit metrics improved as classified loans hit the lowest level since 2008 and delinquent loans decreased to 34bps of the gross loan portfolio. Loan growth declined from 3Q19, however, we start 2020 with a pipeline of $325 million which exceeds the pipeline we started 2019 with by $128 million.”

“In preparation for 2020, we enhanced our distribution network.  We are currently in the testing phase of upgrading our mobile and online banking offerings, which are both components of our digital transformation strategy. We expect this digital transformation to significantly improve the customer experience for both business and consumer customers.  In December, we opened our 20th branch. The new branch in Hicksville, NY will expand on our successful ethnic strategy in the Asian market. We also relocated our Bell Boulevard branch to better serve our growing Asian market.”

“Most importantly, is our pending acquisition of Empire Bancorp, Inc. The acquisition remains on track with an expected closing in the second quarter of 2020. All required applications and notifications have been filed with the respective agencies. As of December 31, 2019, our pro forma balance sheet would be approximately $8.0 billion in assets, $6.4 billion in loans, and $5.9 billion in deposits while expanding into the Suffolk County market. Suffolk County is one of the richest counties in the country with approximately 1.5 million people and 75,000 businesses.  Our plans for substantial cost reductions and improvements in the business remain on track.”

“We remain well capitalized and well positioned to deliver profitable growth and long-term value to our shareholders as we continue to execute our strategic objectives.”

Summary of Strategic Objectives

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

Earnings Summary:

Net Interest Income

Net interest income for 4Q19 was $41.2 million, an increase of $0.5 million, or 1.3% YoY (4Q19 compared to 4Q18) and $2.2 million, or 5.7% QoQ (4Q19 compared to 3Q19).

  • Net interest margin of 2.48%, decreased 9bps YoY, but increased 11bps QoQ
  • Net interest spread of 2.25%, decreased 10bps YoY, but increased 10bps QoQ
  • Yield on average interest-earning assets of 4.21%, decreased 4bps YoY and 1bp QoQ
  • Cost of average interest-bearing liabilities of 1.96%, increased 6bps YoY, but decreased 11bps QoQ
  • Cost of funds of 1.83%, increased 6bps YoY, but decreased 11bps QoQ
  • Average balance of total interest-earning assets of $6,677.3 million, increased $312.9 million, or 4.9%, YoY and $87.8 million, or 1.3%, QoQ
  • Net interest income includes prepayment penalty income from loans totaling $0.9 million in 4Q19, $1.7 million in 3Q19 and $0.9 million in 4Q18; recovered interest from delinquent loans of $0.4 million in 4Q19, $0.3 million in 3Q19 and $0.3 million in 4Q18; net gains from fair value adjustments on qualifying hedges totaling $1.0 million in 4Q19 and net losses from fair value adjustments on qualifying hedges totaling $1.3 million in 3Q19 and none in 4Q18
  • Absent all above items noted in the preceding bullet, the yield on interest-earning assets was 4.07% in 4Q19, a decrease of 11bps from 3Q19 and 4Q18 and the net interest margin was 2.33% in 4Q19 and 3Q19, but decreased 16bps from 4Q18

Provision (benefit) for loan losses

The Company recorded a benefit of $0.3 million in 4Q19 compared to a provision of $0.7 million in 3Q19 and $0.4 million in 4Q18.

  • 4Q19 benefit for loan losses was primarily due to a change in the loan portfolio mix
  • Net charge-offs (recoveries) of ($34,000) in 4Q19, $0.2 million in 3Q19, and ($0.2) million in 4Q18
  • We continue to finalize our Day One impact assumptions and expect the adoption of CECL to increase the current allowance between 5% and 15%
  • The CECL standard will create additional volatility to our future provisions due to the assumptions used for the macroeconomic variables, loan composition and product mix, as they are all subject to change

Non-interest Income

Non-interest income for 4Q19 was $5.0 million, an increase of $6.0 million YoY, and $4.0 million QoQ

  • Non-interest income included net gains from fair value adjustments of $0.8 million in 4Q19 and net losses from fair value adjustments of $2.1 million in 3Q19 and $3.6 million in 4Q18
  • Additionally, non-interest income included net losses from the sale of securities of $1.9 million in 4Q18; net gains from sale of assets of $1.1 million in 4Q18; net gains on sale of loans of $0.5 million in 4Q19 and $0.2 million in 3Q19 and life insurance proceeds of $0.4 million in 4Q19
  • Absent all above items, non-interest income was $3.3 million in 4Q19, a decrease of $0.1 million, or 1.6% YoY, but an increase of $0.4 million, or 12.3% QoQ

Non-interest Expense

Non-interest expense for 4Q19 was $29.6 million, an increase of $3.9 million, or 15.1 % YoY, and $3.6 million, or 13.8% QoQ

  • Non-interest expense included the benefit of the FDIC small business assessment credit of $0.3 million in 4Q19 and $1.3 million in 3Q19
  • Additionally, non-interest expense included the impact of the change in the discount rate used to calculate the Company’s liability of BOLI split dollar insurance; the discount rate decreased in 4Q19 resulting in additional expense totaling $1.2 million, while the discount rate increased in 4Q18 resulting in a decrease in expense totaling $0.8 million
  • Lastly, non-interest expense included merger expenses totaling $1.1 million in 4Q19 and $0.5 million in 3Q19
  • Absent all above items, non-interest expense was $27.7 million in 4Q19, an increase of $1.2 million, or 4.4% YoY, and $0.9 million, or 3.4% QoQ
  • The ratio of non-interest expense to average assets was to 1.68% in 4Q19 compared to 1.49% in 3Q19 and 1.54% in 4Q18; absent all above items non-interest expense to average assets was 1.57% in 4Q19 compared to 1.54% in 3Q19 and 1.59% in 4Q18
  • The efficiency ratio was 65.0% in 4Q19 compared to 58.9% in 3Q19 and 58.5% in 4Q18

Provision for Income Taxes

The provision for income taxes in 4Q19 was $4.0 million, an increase of $2.9 million YoY and $1.4 million QoQ.

  • Pre-tax income increased by $3.4 million, or 25.4% YoY, and $3.6 million, or 27.4% QoQ
  • The effective tax rates were 23.4% in 4Q19, 19.1% in 3Q19 and 7.8% in 4Q18
  • 4Q18 reflects the release of a previously accrued tax liability of $1.8 million

Financial Condition Summary:

Loans:

  • Net loans held for investment were $5,750.5 million reflecting an increase of 4.0% from December 31, 2018, as we continue to focus on the origination of full banking relationship loans through C&I loans, multi-family loans and commercial real estate
  • Loan closings of commercial business loans, multi-family loans and commercial real estate totaled $241.0 million for 4Q19, or 89.3% of loan production
  • Loan pipeline was $324.5 million at December 31, 2019, compared to $418.9 million at September 30, 2019 and $196.6 million at December 31, 2018
  • The loan-to-value ratio on our portfolio of real estate dependent loans as of December 31, 2019 totaled 38.2%

The following table shows the weighted average rate received from loan closings for the periods indicated:

        
  For the three months ended 
  December 31, September 30, December 31, 
Loan type 2019 2019 2018 
Mortgage loans  3.97 4.404.79%
Non-mortgage loans  4.68 4.385.11%
Total loans  4.19 4.39 4.90%

Credit Quality:

  • Non-performing loans totaled $13.3 million, a decrease of $3.0 million, or 18.4%, from $16.3 million at December 31, 2018
  • Non-performing assets totaled $13.5 million, a decrease of $2.8 million, or 16.9%, from $16.3 million at December 31, 2018
  • Classified assets totaled $24.6 million, a decrease of $21.9 million, or 47.1%, from $46.5 million at December 31, 2018
  • Loans classified as troubled debt restructured (TDR) totaled $6.5 million, a decrease of $1.9 million, or 22.4%, from $8.4 million at December 31, 2018
  • We anticipate continued low loss content in the portfolio, as our strong underwriting standards coupled with our practice of obtaining updated appraisals and recording charge-offs early in the delinquency process has resulted in a 26.2% average loan-to-value for non-performing loans collateralized by real estate
  • Net charge-offs totaled $2.0 million during the year ended December 31, 2019 driven mainly by charge-offs of one commercial business loan relationship

Capital Management:

  • The Company and Bank, at December 31, 2019, were both well capitalized under all applicable regulatory requirements
  • Through 4Q19, stockholders’ equity increased $30.2 million, or 5.5%, to $579.7 million primarily due to net income of $41.3 million, partially offset by the declaration and payment of dividends on the Company’s common stock
  • During 4Q19, the Company did not repurchase any shares; as of December 31, 2019, up to 427,211 shares remained subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
  • Book value per common share increased to $20.59 at December 31, 2019, from $19.64 at December 31, 2018 and tangible book value per common share, a non-GAAP measure, increased to $20.02 at December 31, 2019, from $19.07 at December 31, 2018

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 Friday, January 31, 2020 at 9:30 AM (ET) to discuss the Company’s strategy and results for the fourth quarter
  • Dial-in for Live Call: 1-877-509-5836
  • Webcast: https://services.choruscall.com/links/ffic200131.html
  • Dial-in for Replay: 1-877-344-7529
  • Replay Access Code: 10137546
  • The conference call will be simultaneously webcast and archived through January 31, 2021

About Flushing Financial Corporation

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

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

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in other documents filed by the Company with the Securities and Exchange Commission (the “SEC”) from time to time, including those additional risk factors discussed under the heading “Risk Factors” in our Registration Statement on Form S-4/A as filed with the SEC on January 9, 2020, relating to the pending acquisition of Empire Bancorp, Inc.  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.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

                
  For the three months ended For the twelve months ended
  December 31, September 30, December 31, December 31, December 31,
  2019 2019 2018 2019 2018
Interest and Dividend Income               
Interest and fees on loans $ 64,316  $ 62,825  $ 60,722  $ 251,744  $ 232,719 
Interest and dividends on securities:               
Interest   5,528    6,287    6,376    25,535    23,022 
Dividends   17    18    18    73    67 
Other interest income   318    259    317    1,604    1,190 
Total interest and dividend income   70,179    69,389    67,433    278,956    256,998 
                
Interest Expense               
Deposits   21,517    22,244    20,174    88,057    64,497 
Other interest expense   7,483    8,196    6,623    28,959    25,095 
Total interest expense   29,000    30,440    26,797    117,016    89,592 
                
Net Interest Income   41,179    38,949    40,636    161,940    167,406 
Provision (benefit) for loan losses   (318)   683    422    2,811    575 
Net Interest Income After Provision for Loan Losses   41,497    38,266    40,214    159,129    166,831 
                
Non-interest Income               
Banking services fee income   844    847    1,065    3,723    4,030 
Net loss on sale of securities   —    —    (1,920)   (15)   (1,920)
Net gain on sale of loans   489    204    —    870    168 
Net gain on sale of assets   —    —    1,141    770    1,141 
Net gain (loss) from fair value adjustments   807    (2,124)   (3,585)   (5,353)   (4,122)
Federal Home Loan Bank of New York stock dividends   1,026    834    946    3,589    3,576 
Life insurance proceeds   419    —    —    462    2,998 
Bank owned life insurance   984    1,000    779    3,534    3,099 
Other income   469    278    588    1,891    1,367 
Total non-interest income   5,038    1,039    (986)   9,471    10,337 
                
Non-interest Expense               
Salaries and employee benefits   17,470    15,461    15,094    67,765    64,560 
Occupancy and equipment   2,950    2,847    2,551    11,328    10,079 
Professional services   2,120    2,167    1,821    8,358    8,360 
FDIC deposit insurance   306    (589)   472    869    2,115 
Data processing   1,476    1,490    1,409    5,878    5,663 
Depreciation and amortization   1,476    1,439    1,464    5,930    5,792 
Other real estate owned/foreclosure expense (benefit)   59    48    (128)   204    (94)
Net gain from sales of real estate owned   —    —    —    —    (27)
Other operating expenses   3,790    3,182    3,077    14,937    15,235 
Total non-interest expense   29,647    26,045    25,760    115,269    111,683 
                
Income Before Income Taxes   16,888    13,260    13,468    53,331    65,485 
                
Provision for Income Taxes               
Federal   3,058    2,457    349    10,439    8,574 
State and local   899    79    697    1,613��   1,821 
Total taxes   3,957    2,536    1,046    12,052    10,395 
                
Net Income $ 12,931  $ 10,724  $ 12,422  $ 41,279  $ 55,090 
                
                
Basic earnings per common share $ 0.45  $ 0.37  $ 0.44  $ 1.44  $ 1.92 
Diluted earnings per common share $ 0.45  $ 0.37  $ 0.44  $ 1.44  $ 1.92 
Dividends per common share $ 0.21  $ 0.21  $ 0.20  $ 0.84  $ 0.80 


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)

          
  December 31, September 30, December 31,
  2019  2019  2018 
ASSETS         
Cash and due from banks $ 49,787  $ 86,989  $ 118,561 
Securities held-to-maturity:         
Mortgage-backed securities   7,934    7,939    7,953 
Other securities   50,954    52,101    24,065 
Securities available for sale:         
Mortgage-backed securities   523,849    579,010    557,953 
Other securities   248,651    246,465    264,702 
Loans:         
Multi-family residential   2,238,591    2,232,305    2,269,048 
Commercial real estate   1,582,008    1,559,581    1,542,547 
One-to-four family ― mixed-use property   592,471    587,100    577,741 
One-to-four family ― residential   188,216    184,432    190,350 
Co-operative apartments   8,663    9,089    8,498 
Construction   67,754    64,234    50,600 
Small Business Administration   14,445    13,982    15,210 
Taxi medallion   3,309    3,513    4,539 
Commercial business and other   1,061,478    1,096,164    877,763 
Net unamortized premiums and unearned loan fees   15,271    15,363    15,188 
Allowance for loan losses   (21,751)   (22,035)   (20,945)
Net loans   5,750,455    5,743,728    5,530,539 
Interest and dividends receivable   25,722    26,566    25,485 
Bank premises and equipment, net   28,676    28,146    30,418 
Federal Home Loan Bank of New York stock   56,921    65,280    57,282 
Bank owned life insurance   157,713    158,604    131,788 
Goodwill   16,127    16,127    16,127 
Other real estate owned, net   239    239    — 
Right of use asset   41,254    42,400    — 
Other assets   59,494    57,301    69,303 
Total assets $ 7,017,776  $ 7,110,895  $ 6,834,176 
          
LIABILITIES         
Due to depositors:         
Non-interest bearing $ 435,072  $ 421,786  $ 413,747 
Certificate of deposit accounts   1,437,890    1,506,376    1,563,310 
Savings accounts   191,485    193,497    210,022 
Money market accounts   1,592,011    1,329,156    1,427,992 
NOW accounts   1,365,591    1,461,694    1,300,852 
Total deposits   5,022,049    4,912,509    4,915,923 
Mortgagors' escrow deposits   44,375    61,803    44,861 
Borrowed funds   1,237,231    1,422,440    1,250,843 
Operating lease liability   49,367    50,626    — 
Other liabilities   85,082    95,125    73,085 
Total liabilities   6,438,104    6,542,503    6,284,712 
          
STOCKHOLDERS' EQUITY         
Preferred stock (5,000,000 shares authorized; none issued)   —    —    — 
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares issued at December 31, 2019, September 30, 2019 and December 31, 2018; 28,157,206 shares, 28,157,206 shares and 27,983,637 shares outstanding at December 31, 2019, September 30, 2019 and December 31, 2018, respectively)   315    315    315 
Additional paid-in capital   226,691    225,471    222,720 
Treasury stock (3,373,389 shares, 3,373,389 shares and 3,546,958 shares at December 31, 2019, September 30, 2019 and December 31, 2018, respectively)   (71,487)   (71,487)   (75,146)
Retained earnings   433,960    427,062    414,327 
Accumulated other comprehensive loss, net of taxes   (9,807)   (12,969)   (12,752)
Total stockholders' equity   579,672    568,392    549,464 
          
Total liabilities and stockholders' equity $ 7,017,776  $ 7,110,895  $ 6,834,176 


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)

                 
  At or for the three months ended At or for the twelve months ended 
  December 31, September 30, December 31, December 31, December 31, 
  2019 2019 2018 2019 2018 
Per Share Data                
Basic earnings per share $ 0.45 $ 0.37 $ 0.44 $ 1.44 $ 1.92 
Diluted earnings per share $ 0.45 $ 0.37 $ 0.44 $ 1.44 $ 1.92 
Average number of shares outstanding for:                
Basic earnings per common share computation   28,723,077   28,730,161   28,422,215   28,709,106   28,709,378 
Diluted earnings per common share computation   28,723,077   28,730,161   28,422,517   28,709,109   28,709,833 
Shares outstanding   28,157,206   28,157,206   27,983,637   28,157,206   27,983,637 
Book value per common share (1) $ 20.59 $ 20.19 $ 19.64 $ 20.59 $ 19.64 
Tangible book value per common share (2) $ 20.02 $ 19.62 $ 19.07 $ 20.02 $ 19.07 
                 
Stockholders' Equity                
Stockholders' equity $ 579,672 $ 568,392 $ 549,464 $ 579,672 $ 549,464 
Tangible stockholders' equity   563,837   552,551   533,627   563,837   533,627 
                 
Average Balances                
Total loans, net $ 5,726,635 $ 5,645,503 $ 5,438,418 $ 5,621,033 $ 5,316,968 
Total interest-earning assets   6,677,325   6,589,498   6,364,456   6,582,473   6,194,248 
Total assets   7,057,094   6,972,403   6,681,161   6,947,881   6,504,598 
Total due to depositors   4,527,645   4,422,050   4,453,200   4,535,292   4,288,868 
Total interest-bearing liabilities   5,912,284   5,877,740   5,654,560   5,856,953   5,517,552 
Stockholders' equity   567,461   564,255   541,067   561,289   534,735 
                 
Performance Ratios (3)                
Return on average assets   0.73  0.62  0.74  0.59  0.85%
Return on average equity   9.11   7.60   9.18   7.35   10.30 
Yield on average interest-earning assets (4)   4.21   4.22   4.25   4.25   4.16 
Cost of average interest-bearing liabilities   1.96   2.07   1.90   2.00   1.62 
Cost of funds   1.83   1.94   1.77   1.87   1.52 
Net interest rate spread during period (4)   2.25   2.15   2.35   2.25   2.54 
Net interest margin (4)   2.48   2.37   2.57   2.47   2.72 
Non-interest expense to average assets   1.68   1.49   1.54   1.66   1.72 
Efficiency ratio (5)   65.00   58.87   58.53   63.89   62.12 
Average interest-earning assets to average interest-bearing liabilities   1.13X  1.12X  1.13X  1.12X  1.12X

(1) Calculated by dividing stockholders’ equity by shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less intangible assets (goodwill, net of deferred taxes). See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(3) Ratios are presented on an annualized basis, where appropriate.
(4) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
(5) Efficiency ratio, a non-GAAP measure, was calculated by dividing non-interest expense (excluding accelerated employee benefits upon officer’s death, merger expense, OREO expense and the net gain/loss from the sale of OREO) by the total of net interest income (excluding net losses from fair value adjustments on qualifying hedges) and non-interest income (excluding net gains and losses from the sale of securities, assets and fair value adjustments and life insurance proceeds).


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)

        
  At or for the twelve At or for the twelve 
  months ended months ended 
  December 31, 2019 December 31, 2018 
        
Selected Financial Ratios and Other Data       
        
Regulatory capital ratios (for Flushing Financial Corporation):       
Tier 1 capital $ 615,500 $ 586,582 
Common equity Tier 1 capital   572,651   546,230 
Total risk-based capital   712,251   682,527 
        
Tier 1 leverage capital (well capitalized = 5%)   8.73  8.74%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)   10.95   10.98 
Tier 1 risk-based capital (well capitalized = 8.0%)   11.77   11.79 
Total risk-based capital (well capitalized = 10.0%)   13.62   13.72 
        
Regulatory capital ratios (for Flushing Bank only):       
Tier 1 capital $ 680,749 $ 660,782 
Common equity Tier 1 capital   680,749   660,782 
Total risk-based capital   702,500   681,727 
        
Tier 1 leverage capital (well capitalized = 5%)   9.65  9.85%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)   13.02   13.28 
Tier 1 risk-based capital (well capitalized = 8.0%)   13.02   13.28 
Total risk-based capital (well capitalized = 10.0%)   13.43   13.70 
        
Capital ratios:       
Average equity to average assets   8.08  8.22%
Equity to total assets   8.26   8.04 
Tangible common equity to tangible assets (1)   8.05   7.83 
        
Asset quality:       
Non-accrual loans (2) $ 12,813 $ 16,253 
Non-performing loans   13,258   16,253 
Non-performing assets   13,532   16,288 
Net charge-offs   2,005   (19) 
        
Asset quality ratios:       
Non-performing loans to gross loans   0.23  0.29%
Non-performing assets to total assets   0.19   0.24 
Allowance for loan losses to gross loans   0.38   0.38 
Allowance for loan losses to non-performing assets   160.73   128.60 
Allowance for loan losses to non-performing loans   164.05   128.87 
        
Full-service customer facilities   20   19 

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


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)

                          
  For the three months ended 
  December 31, 2019 September 30, 2019 December 31, 2018 
  Average    Yield/ Average    Yield/ Average    Yield/ 
  Balance Interest Cost Balance Interest Cost Balance Interest Cost 
                          
    
Interest-earning Assets:                         
Mortgage loans, net $ 4,628,854 $ 51,927  4.49$ 4,598,898 $ 50,462  4.39$ 4,555,895 $ 49,789  4.37%
Other loans, net   1,097,781   12,389  4.51   1,046,605   12,363  4.72   882,523   10,933  4.96 
Total loans, net (1) (2)   5,726,635   64,316  4.49   5,645,503   62,825  4.45   5,438,418   60,722  4.47 
Taxable securities:                         
Mortgage-backed securities   555,023   3,230  2.33   574,756   3,765  2.62   558,693   4,004  2.87 
Other securities   244,075   1,774  2.91   244,757   1,982  3.24   184,592   1,586  3.44 
Total taxable securities   799,098   5,004  2.50   819,513   5,747  2.81   743,285   5,590  3.01 
Tax-exempt securities: (3)                         
Other securities   63,825   685  4.29   65,709   706  4.30   114,079   1,018  3.57 
Total tax-exempt securities   63,825   685  4.29   65,709   706  4.30   114,079   1,018  3.57 
Interest-earning deposits and federal funds sold   87,767   318  1.45   58,773   259  1.76   68,674   317  1.85 
Total interest-earning assets   6,677,325   70,323  4.21   6,589,498   69,537  4.22   6,364,456   67,647  4.25 
Other assets   379,769        382,905        316,705      
Total assets $ 7,057,094      $ 6,972,403      $ 6,681,161      
                          
                          
Interest-bearing Liabilities:                         
Deposits:                         
Savings accounts $ 192,818   325  0.67 $ 194,736   344  0.71 $ 213,091   392  0.74 
NOW accounts   1,362,151   5,227  1.53   1,347,145   5,654  1.68   1,312,834   4,968  1.51 
Money market accounts   1,456,676   7,165  1.97   1,306,634   6,859  2.10   1,348,873   6,523  1.93 
Certificate of deposit accounts   1,516,000   8,752  2.31   1,573,535   9,321  2.37   1,578,402   8,276  2.10 
Total due to depositors   4,527,645   21,469  1.90   4,422,050   22,178  2.01   4,453,200   20,159  1.81 
Mortgagors' escrow accounts   74,751   48  0.26   60,084   66  0.44   71,108   15  0.08 
Total interest-bearing deposits   4,602,396   21,517  1.87   4,482,134   22,244  1.99   4,524,308   20,174  1.78 
Borrowings   1,309,888   7,483  2.29   1,395,606   8,196  2.35   1,130,252   6,623  2.34 
Total interest-bearing liabilities   5,912,284   29,000  1.96   5,877,740   30,440  2.07   5,654,560   26,797  1.90 
Non interest-bearing demand deposits   435,241        400,762        406,501      
Other liabilities   142,108        129,646        79,033      
Total liabilities   6,489,633        6,408,148        6,140,094      
Equity   567,461        564,255        541,067      
Total liabilities and equity $ 7,057,094      $ 6,972,403      $ 6,681,161      
                          
Net interest income / net interest rate spread (tax equivalent) (3)    $ 41,323  2.25   $ 39,097  2.15   $ 40,850  2.35
                          
Net interest-earning assets / net interest margin (tax equivalent) $ 765,041     2.48$ 711,758     2.37$ 709,896     2.57
                          
Ratio of interest-earning assets to interest-bearing liabilities        1.13X       1.12X       1.13X

(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, $0.9 million and $0.5 million for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018, respectively.
(2) Loan interest income includes net gains from fair value adjustments on qualifying hedges of $1.0 million for the three months ended December 31, 2019 and net losses of $1.3 million for the three months ended September 30, 2019.
(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018 totaling $0.1 million, $0.1 million and $0.2 million, respectively.


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)

                   
  For the twelve months ended 
  December 31, 2019 December 31, 2018 
  Average   Yield/ Average   Yield/ 
  Balance Interest Cost Balance Interest Cost 
Interest-earning Assets:                  
Mortgage loans, net $ 4,609,439 $ 203,440   4.41$ 4,494,210 $ 193,186  4.30%
Other loans, net   1,011,594   48,304   4.78   822,758   39,533  4.80 
Total loans, net (1) (2)   5,621,033   251,744   4.48   5,316,968   232,719  4.38 
Taxable securities:                  
Mortgage-backed securities   572,223   15,468   2.70   539,771   15,065  2.79 
Other securities   243,324   8,102   3.33   140,461   4,658  3.32 
Total taxable securities   815,547   23,570   2.89   680,232   19,723  2.90 
Tax-exempt securities: (3)                  
Other securities   60,971   2,580   4.23   121,412   4,261  3.51 
Total tax-exempt securities   60,971   2,580   4.23   121,412   4,261  3.51 
Interest-earning deposits and federal funds sold   84,922   1,604   1.89   75,636   1,190  1.57 
Total interest-earning assets   6,582,473   279,498   4.25   6,194,248   257,893  4.16 
Other assets   365,408         310,350      
Total assets $ 6,947,881       $ 6,504,598      
                   
                   
Interest-bearing Liabilities:                  
Deposits:                  
Savings accounts $ 198,374   1,378   0.69 $ 233,392   1,370  0.59 
NOW accounts   1,434,440   23,553   1.64   1,407,945   15,896  1.13 
Money market accounts   1,370,038   27,819   2.03   1,164,505   18,707  1.61 
Certificate of deposit accounts   1,532,440   35,078   2.29   1,483,026   28,310  1.91 
Total due to depositors   4,535,292   87,828   1.94   4,288,868   64,283  1.50 
Mortgagors' escrow accounts   70,209   229   0.33   66,255   214  0.32 
Total interest-bearing deposits   4,605,501   88,057   1.91   4,355,123   64,497  1.48 
Borrowings   1,251,452   28,959   2.31   1,162,429   25,095  2.16 
Total interest-bearing liabilities   5,856,953   117,016   2.00   5,517,552   89,592  1.62 
Non interest-bearing demand deposits   407,450         380,889      
Other liabilities   122,189         71,422      
Total liabilities   6,386,592         5,969,863      
Equity   561,289         534,735      
Total liabilities and equity $ 6,947,881       $ 6,504,598      
                   
Net interest income / net interest rate spread
 (tax equivalent) (3)
    $ 162,482   2.25   $ 168,301  2.54%
Net interest-earning assets / net interest margin (tax equivalent) $ 725,520      2.47$ 676,696     2.72%
Ratio of interest-earning assets to interest-bearing liabilities         1.12X       1.12X

(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $2.0 million and $2.1 million for the year ended December 31, 2019 and 2018, respectively.
(2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $1.7 million and none for the year ended December 31, 2019 and 2018, respectively.
(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the year ended December 31, 2019 and 2018 totaling $0.5 million and $0.9 million, respectively.


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT COMPOSITION
(Unaudited)

                     
              December 2019 vs.    December 2019 vs. 
  December 31, September 30, June 30, March 31, September 2019 December 31, December 2018 
(Dollars in thousands) 2019 2019 2019 2019 % Change 2018 % Change 
Deposits                    
Non-interest bearing $ 435,072 $ 421,786 $ 413,813 $ 401,064  3.1 %$ 413,747  5.2 %
Interest bearing:                    
Certificate of deposit accounts   1,437,890   1,506,376   1,544,117   1,511,770  (4.5)  1,563,310  (8.0)%
Savings accounts   191,485   193,497   196,820   201,811  (1.0)  210,022  (8.8)%
Money market accounts   1,592,011   1,329,156   1,302,153   1,352,843  19.8   1,427,992  11.5 %
NOW accounts   1,365,591   1,461,694   1,368,813   1,542,606  (6.6)  1,300,852  5.0 %
Total interest-bearing deposits   4,586,977   4,490,723   4,411,903   4,609,030  2.1   4,502,176  1.9 %
                     
Total deposits $ 5,022,049 $ 4,912,509 $ 4,825,716 $ 5,010,094  2.2 $ 4,915,923  2.2 %



FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOANS
(Unaudited)

Loan Closings

                
  For the three months ended For the twelve months ended
  December 31, September 30, December 31, December 31, December 31,
(In thousands) 2019 2019 2018 2019 2018
Multi-family residential $ 104,310 $ 60,454 $ 85,095 $ 247,607 $ 339,732
Commercial real estate   55,047   66,648   95,772   178,336   270,785
One-to-four family – mixed-use property   18,653   18,167   28,924   66,128   74,156
One-to-four family – residential   5,833   7,421   7,356   25,024   42,660
Co-operative apartments   —   1,817   948   2,117   2,448
Construction   3,542   5,761   8,968   33,919   39,595
Small Business Administration   721   121   1,304   3,426   3,843
Commercial business and other   81,630   237,754   116,365   605,743   477,572
Total $ 269,736 $ 398,143 $ 344,732 $ 1,162,300 $ 1,250,791

Loan Composition

                     
              December 2019 vs.    December 2019 vs. 
   December 31, September 30, June 30, March 31, September 2019 December 31, December 2018 
(Dollars in thousands) 2019 2019 2019 2019 % Change 2018 % Change 
Loans held for investment:                    
Multi-family residential $ 2,238,591  $ 2,232,305  $ 2,263,875  $ 2,256,447   0.3 $ 2,269,048   (1.3)%
Commercial real estate   1,582,008    1,559,581    1,524,693    1,529,001   1.4   1,542,547   2.6 %
One-to-four family ― mixed-use property   592,471    587,100    582,264    582,049   0.9   577,741   2.5 %
One-to-four family ― residential   188,216    184,432    184,024    188,615   2.1   190,350   (1.1)%
Co-operative apartments   8,663    9,089    8,137    7,903   (4.7)  8,498   1.9 %
Construction   67,754    64,234    58,503    54,933   5.5   50,600   33.9 %
Small Business Administration   14,445    13,982    14,511    15,188   3.3   15,210   (5.0)%
Taxi medallion   3,309    3,513    3,555    3,891   (5.8)  4,539   (27.1)%
Commercial business and other   1,061,478    1,096,164    983,573    935,297   (3.2)  877,763   20.9 %
Net unamortized premiums and unearned loan fees   15,271    15,363    15,278    15,422   (0.6)  15,188   0.5 %
Allowance for loan losses   (21,751)   (22,035)   (21,510)   (21,015)  (1.3)  (20,945)  3.8 %
Net loans $ 5,750,455  $ 5,743,728  $ 5,616,903  $ 5,567,731   0.1 $ 5,530,539   4.0 %

Net Loans Activity

                
  Three Months Ended
  December 31, September 30, June 30, March 31, December 31,
(In thousands)  2019  2019  2019  2019  2018 
Loans originated and purchased $ 269,736  $ 398,143  $ 296,397  $ 198,024  $ 344,732 
Principal reductions   (255,977)   (266,894)   (243,263)   (158,815)   (173,061)
Loans sold   (7,129)   (3,553)   (1,970)   (1,043)   — 
Loan charge-offs   (95)   (431)   (1,114)   (1,138)   (211)
Foreclosures   —    —    (239)   —    — 
Net change in deferred fees and costs   (92)   85    (144)   234    (38)
Net change in the allowance for loan losses   284    (525)   (495)   (70)   (636)
Total loan activity $ 6,727  $ 126,825  $ 49,172  $ 37,192  $ 170,786 


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NON-PERFORMING ASSETS and NET CHARGE-OFFS
(Unaudited)

                 
  December 31, September 30, June 30, March 31, December 31, 
(Dollars in thousands) 2019 2019 2019 2019 2018 
Loans 90 Days Or More Past Due and Still Accruing:                
Multi-family residential $ 445 $ 445 $ — $ — $ — 
Total   445   445   —   —   — 
                 
Non-accrual Loans:                
Multi-family residential   2,296   3,132   2,008   2,009   2,410 
Commercial real estate   367   872   1,488   1,050   1,379 
One-to-four family - mixed-use property   274   683   1,752   1,305   928 
One-to-four family - residential   5,139   5,050   5,411   5,708   6,144 
Construction   —   —   —   950   — 
Small Business Administration   1,151   1,151   1,224   1,227   1,267 
Taxi medallion(1)   1,641   1,352   1,361   1,372   613 
Commercial business and other(1)   1,945   2,020   2,458   2,114   3,512 
Total   12,813   14,260   15,702   15,735   16,253 
                 
Total Non-performing Loans   13,258   14,705   15,702   15,735   16,253 
                 
Other Non-performing Assets:                
Real estate acquired through foreclosure   239   239   239   —   — 
Other asset acquired through foreclosure   35   35   35   35   35 
Total   274   274   274   35   35 
                 
Total Non-performing Assets $ 13,532 $ 14,979 $ 15,976 $ 15,770 $ 16,288 
                 
Non-performing Assets to Total Assets   0.19  0.21  0.23  0.23  0.24%
Allowance For Loan Losses to Non-performing Loans   164.1  149.8  137.0  133.6  128.9%

(1) Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $1.7 million in 4Q19, $2.2 million in 3Q19, $2.2 million in 2Q19, $2.5 million in 1Q19 and $3.9 million in 4Q18 and non-accrual performing TDR commercial business loans totaling $0.9 million in 4Q19 and $1.0 million in 3Q19.

Net Charge-Offs (Recoveries)

                
  Three Months Ended
  December 31, September 30, June 30, March 31, December 31,
(In thousands) 2019  2019  2019  2019  2018 
Multi-family residential $ (14) $ 183  $ (10) $ (13) $ (4)
Commercial real estate   (30)   —    (7)   —    — 
One-to-four family – mixed-use property   119    (140)   (2)   (85)   (18)
One-to-four family – residential   (3)   (3)   110    (4)   (199)
Small Business Administration   (8)   (32)   (16)   (4)   170 
Taxi medallion   —    —    (50)   (84)   (143)
Commercial business and other   (98)   150    954    1,092    (20)
Total net loan charge-offs (recoveries) $ (34) $ 158  $ 979  $ 902  $ (214)

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

During 2019, core earnings were higher than GAAP earnings primarily due to the impact of non-cash net losses from fair value adjustments. These fair value adjustments relate primarily to swaps designated to protect against rising rates. As the swaps get closer to maturity the volatility in fair value adjustments will dissipate. Overall, the interest movement of the swaps is benefitting the core net interest margin while the fair value adjustments are offsetting the benefit. 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 Diluted EPS, Core ROAE, Core ROAA, Core Net Interest Income, Core Yield on Total Loans, Core Net Interest Margin 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 non-interest items and provide an alternative view of the Company's performance over time and in comparison to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)

                 
  Three Months Ended Twelve Months Ended 
  December 31, September 30, December 31, December 31, December 31, 
  2019  2019 2018  2019  2019  
                 
GAAP income before income taxes $ 16,888  $ 13,260 $ 13,468  $ 53,331  $ 65,485  
                 
Net (gain) loss from fair value adjustments   (807)   2,124   3,585    5,353    4,122  
Net loss on sale of securities   —    —   1,920    15    1,920  
Life insurance proceeds   (419)   —   —    (462)   (2,998) 
Net gain on sale of assets   —    —   (1,141)   (770)   (1,141) 
Net (gain) loss from fair value adjustments on qualifying hedges   (1,039)   1,262   —    1,678    —  
Accelerated employee benefits upon Officer's death   —    —   —    455    149  
Merger expense   1,080    510   —    1,590    —  
                 
Core income before taxes   15,703    17,156   17,832    61,190    67,537  
                 
Provision for income taxes for core income   3,841    3,312   2,395    13,957    11,960  
                 
Core net income $ 11,862  $ 13,844 $ 15,437  $ 47,233  $ 55,577  
                 
GAAP diluted earnings per common share $ 0.45  $ 0.37 $ 0.44  $ 1.44  $ 1.92  
                 
Net (gain) loss from fair value adjustments, net of tax   (0.02)   0.06   0.09    0.14    0.10  
Net loss on sale of securities, net of tax   —    —   0.05    —    0.05  
Life insurance proceeds   (0.01)   —   —    (0.02)   (0.10) 
Net gain on sale of assets, net of tax   —    —   (0.03)   (0.02)   (0.03) 
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax   (0.03)   0.04   —    0.05    —  
Accelerated employee benefits upon Officer's death, net of tax   —    —   —    0.01    —  
Merger expense, net of tax   0.03    0.01   —    0.04    —  
                 
Core diluted earnings per common share(1) $ 0.41  $ 0.48 $ 0.54  $ 1.65  $ 1.94  
                 
                 
Core net income, as calculated above $ 11,862  $ 13,844 $ 15,437  $ 47,233  $ 55,577  
Average assets   7,057,094    6,972,403   6,681,161    6,947,881    6,504,598  
Average equity   567,461    564,255   541,067    561,289    534,735  
Core return on average assets(2)   0.67   0.79  0.92   0.68   0.85 %
Core return on average equity(2)   8.36   9.81  11.41   8.42   10.39 %

(1) Core diluted earnings per common share may not foot due to rounding.
(2) Ratios are calculated on an annualized basis.


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN
To CORE NET INTEREST INCOME and NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)

                 
  Three Months Ended Twelve Months Ended 
  December 31, September 30, December 31, December 31, December 31, 
  2019 2019 2018 2019 2018 
GAAP net interest income $ 41,179  $ 38,949  $ 40,636  $ 161,940  $ 167,406  
Net (gain) loss from fair value adjustments on qualifying hedges   (1,039)   1,262    —    1,678    —  
Core net interest income $ 40,140  $ 40,211  $ 40,636  $ 163,618  $ 167,406  
                 
                 
GAAP interest income on total loans, net $ 64,316  $ 62,825  $ 60,722  $ 251,744  $ 232,719  
Net (gain) loss from fair value adjustments on qualifying hedges   (1,039)   1,262    —    1,678    —  
Prepayment penalties received on loans   (926)   (1,697)   (892)   (4,548)   (5,200) 
Net recoveries of interest from non-accrual loans   (428)   (292)   (276)   (1,953)   (1,756) 
Core interest income on total loans, net $ 61,923  $ 62,098  $ 59,554  $ 246,921  $ 225,763  
Average total loans, net $ 5,726,635  $ 5,645,503  $ 5,438,418  $ 5,621,033  $ 5,316,968  
Core yield on total loans   4.33   4.40   4.38   4.39   4.25 %
                 
                 
Net interest income tax equivalent $ 41,323  $ 39,097  $ 40,850  $ 162,482  $ 168,301  
Net (gain) loss from fair value adjustments on qualifying hedges   (1,039)   1,262    —    1,678    —  
Prepayment penalties received on loans and securities   (926)   (1,697)   (892)   (4,548)   (5,302) 
Net recoveries of interest from non-accrual loans   (428)   (292)   (276)   (1,953)   (1,756) 
Net interest income used in calculation of Core net interest margin $ 38,930  $ 38,370  $ 39,682  $ 157,659  $ 161,243  
Total average interest-earning assets $ 6,677,325  $ 6,589,498  $ 6,364,456  $ 6,582,473  $ 6,194,248  
Core net interest margin   2.33   2.33   2.49   2.40   2.60 %


FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS’
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)

           
  December 31, September 30, December 31, 
(Dollars in thousands) 2019 2019 2018 
Total Equity $ 579,672  $ 568,392  $ 549,464  
Less:          
Goodwill   (16,127)   (16,127)   (16,127) 
Intangible deferred tax liabilities   292    286    290  
Tangible Stockholders' Common Equity $ 563,837  $ 552,551  $ 533,627  
           
Total Assets $ 7,017,776  $ 7,110,895  $ 6,834,176  
Less:          
Goodwill   (16,127)   (16,127)   (16,127) 
Intangible deferred tax liabilities   292    286    290  
Tangible Assets $ 7,001,941  $ 7,095,054  $ 6,818,339  
           
Tangible Stockholders' Common Equity to Tangible Assets   8.05   7.79   7.83 %

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

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

 

Flushing Financial Logo 02-08-11 Blue 286.jpg

Source: Flushing Financial Corporation