FFIC - Flushing Financial Corporation Reports 2023 and 4Q23 GAAP EPS of $0.96 and $0.27 and Core EPS of $0.83 and $0.25 Respectively; Continues to Successfully Execute On Its Action Plan | Benzinga

January, 25 2024 11:00 PM Flushing Financial Corporation

John R. Buran, President and CEO Commentary

"Flushing Financial delivered sequential GAAP and Core NIM expansion in 4Q23 of 7 and 18 basis points, respectively, as our team continued to successfully execute against the previously announced action plan amid this challenging environment. Importantly, during the quarter, total average deposits increased 3.1% YoY and 0.9% QoQ, while average noninterest bearing deposits increased $21.6 million, or 2.5% QoQ. Our loan portfolio remains resilient through the credit cycle with 89% secured by real estate, strong debt service coverage ratios, low average loan to values, and controllable repricing risk. Credit quality continues to be a strength for the Company with less than one basis point of net charge-offs in 4Q23 although there was a slight uptick in NPAs.

Given our progress to date, we are expanding our areas of focus to include: 1) increasing NIM and reducing volatility; 2) maintaining credit discipline; 3) preserving strong liquidity and capital; and 4) bending the expense curve. Continuing to advance these priorities will enable us to navigate the current environment while positioning the Company for long-term profitable growth."

- John R. Buran, President and CEO

UNIONDALE, N.Y., Jan. 25, 2024 (GLOBE NEWSWIRE) -- GAAP and Core NIM Expand QoQ; Average Total Deposits Increase. The Company reported fourth quarter and full year 2023 GAAP EPS of $0.27 and $0.96, respectively. Core EPS for the fourth quarter and full year of 2023 totaled $0.25 and $0.83, respectively. 4Q23 GAAP NIM was 2.29% while Core NIM amounted to 2.31%. The actions undertaken in 2023 to reduce interest rate risk, including adding interest rate hedges and floating rate loans, assisted in reducing the NIM compression. Absent episodic items, the NIM was 2.14%, an increase of 5 basis points quarter over quarter. Average total deposits increased 3.1% YoY and 0.9% QoQ while importantly, noninterest bearing deposits increased $21.6 million, or 2.5% QoQ.

Strong Credit Quality; Stable Capital. Nonperforming assets to total assets increased to 54 bps compared to 45 bps in 3Q23, while criticized and classified loans to loans was 1.11% in 4Q23, compared to 1.08% in 3Q23. Net charge-offs were only $60 thousand in 4Q23. Capital continues to be sound with TCE/TA¹ of 7.64% at December 31, 2023, compared to 7.56% at September 30, 2023. The Company repurchased 38,815 shares at an average cost $15.08 (33% discount to tangible book value) during 4Q23.

Key Financial Metrics²





















4Q23


3Q23

2Q23

1Q23

4Q22


2023


2022
GAAP:

















EPS

$
0.27


$
0.26

$
0.29

$
0.13

$
0.34


$
0.96


$
2.50
ROAA (%)


0.38



0.37


0.41


0.19


0.48



0.34



0.93
ROAE (%)


4.84



4.64


5.16


2.37


6.06



4.25



11.44
NIM FTE³(%)


2.29



2.22


2.18


2.27


2.70



2.24



3.11
Core:

















EPS

$
0.25


$
0.25

$
0.26

$
0.06

$
0.57


$
0.83


$
2.49
ROAA (%)


0.35



0.36


0.37


0.09


0.82



0.29



0.92
ROAE (%)


4.51



4.49


4.70


1.11


10.29



3.69



11.42
Core NIM FTE (%)


2.31



2.13


2.17


2.25


2.63



2.21



3.07
Credit Quality:

















NPAs/Loans & OREO (%)


0.67



0.56


0.58


0.61


0.77



0.67



0.77
ACLs/Loans (%)


0.58



0.57


0.57


0.56


0.58



0.58



0.58
ACLs/NPLs (%)


159.55



225.38


207.08


182.89


124.89



159.55



124.89
NCOs/Avg Loans (%)


-



-


0.09


0.54


0.05



0.16



0.02
Balance Sheet:

















Avg Loans ()

$
6.9


$
6.8

$
6.8

$
6.9

$
6.9


$
6.8


$
6.7
Avg Dep ()

$
6.9


$
6.8

$
6.9

$
6.8

$
6.7


$
6.9


$
6.5
Book Value/Share

$
23.21


$
23.06

$
23.14

$
22.80

$
22.97


$
23.21


$
22.97
Tangible BV/Share

$
22.54


$
22.39

$
22.47

$
22.14

$
22.31


$
22.54


$
22.31
TCE/TA (%)


7.64



7.56


7.70


7.72


7.82



7.64



7.82

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
¹ Tangible Common Equity ("TCE")/Total Assets ("TA") ² See "Reconciliation of GAAP Earnings and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin." ³ Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").

4Q23 Highlights

Net interest margin FTE decreased 41 bps YoY, but increased 7 bps QoQ to 2.29%; Core net interest margin FTE decreased 32 bps YoY but improved 18 bps QoQ to 2.31%; Both GAAP and Core NIM benefited from prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap termination fees, which totaled $3.4 million or 17 bps in 4Q23
Average total deposits increased 3.1% YoY and 0.9% QoQ to $6.9 billion; Average noninterest bearing deposits increased $21.6 million QoQ, totaling 12.7% of average total deposits compared to 14.7% in 4Q22 and 12.5% in 3Q23. Average CDs were $2.3 billion, up 73.3% YoY and 2.2% QoQ
Period end net loans decreased 0.4% YoY, but increased 0.1% QoQ; Loan closings were $244.3 million up 8.5% YoY and 1.2% QoQ; The yields on closings increased 159 bps YoY and 21 bps QoQ to 7.69%; Back-to-back swap loan originations were $121.6 million compared to $120.5 million in 3Q23 and generated $1.5 million and $1.6 million of noninterest income, respectively; Loan pipeline decreased 35.3% YoY and 55.1% QoQ to $163.1 million; Approximately 29% of the loan pipeline consists of back-to-back swap loans
NPAs decreased to $46.2 million from $53.4 million a year ago but increased from $38.4 million in the prior quarter
As separately disclosed, we have not recognized and have restated for employee retention credits formerly recognized during periods of 2023, and have fully reserved for approximately $7.0 million ($0.17/share, after tax) of refunds
4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production
Provision for credit losses was $1.0 million in 4Q23 compared to negligible amount in 4Q22 and $0.6 million in 3Q23; Net charge-offs (recoveries) were $60,000 in 4Q23 compared to $0.8 million in 4Q22 and $(42,000) in 3Q23
Tangible Common Equity to Tangible Assets increased to 7.64% at 4Q23 compared to 7.56% at 3Q23; Repurchased 38,815 shares at an average price of $15.08 or a 33% discount to December 31, 2023, tangible book value of $22.54

Areas of Focus

Increase NIM and Reduce Volatility

GAAP and Core NIM improved 7 bps and 18 bps QoQ, respectively, in 4Q23
NIM improved 5 bps QoQ to 2.14%, absent episodic items¹
Largely achieved the goal of becoming interest rate neutral to a 100 bps change in rates
Approximately 25% of the loan portfolio consists of floating rate loans (including interest rate hedges)
Average noninterest bearing increased 2.5% QoQ and accounted for 12.7% of average total deposits

Maintain Credit Discipline

Approximately 89% of the loan portfolio is collateralized by real estate with an average loan to value of less than 36%
Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans
NPAs are a low 54 bps of assets and criticized and classified loans are 1.11% of loans
Manhattan office buildings exposure is minimal at 0.6% of net loans

Preserve Strong Liquidity and Capital

Maintaining ample liquidity with $4.1 billion of undrawn lines and resources
Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 30% of total deposits
Total average deposits increased 3.1% YoY and 0.9% QoQ
Checking account openings declined 6.6% YoY in 4Q23, but were up 5.7% in 2023
Tangible Common Equity to Tangible Assets improved to 7.64% QoQ
Leverage ratio remains stable at 8.47%

Bend the Expense Curve

GAAP noninterest expense to average assets was 1.90% in 4Q23 compared to 1.58% in 4Q22 and 1.71% in 3Q23
4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production
1Q24 seasonal expenses are expected to be less than half of the $4.1 million recorded in 1Q23

¹ Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments

Income Statement Highlights


































YoY

QoQ
($000s, except EPS)


4Q23


3Q23

2Q23

1Q23

4Q22

Change

Change



















Net Interest Income


$
46,085


$
44,427

$
43,378

$
45,262

$
54,201


(15.0
)
%

3.7

%
Provision (Benefit) for Credit Losses



998



596


1,416


7,508


(12
)

(8,416.7
)


67.4


Noninterest Income (Loss)



7,402



3,309


5,020


6,857


(7,652
)

(196.7
)


123.7


Noninterest Expense



40,735



36,388


35,110


39,156


33,742


20.7



11.9


Income Before Income Taxes



11,754



10,752


11,872


5,455


12,819


(8.3
)


9.3


Provision for Income Taxes



3,655



2,917


3,186


1,411


2,570


42.2



25.3


Net Income


$
8,099


$
7,835

$
8,686

$
4,044

$
10,249


(21.0
)


3.4


Diluted EPS


$
0.27


$
0.26

$
0.29

$
0.13

$
0.34


(20.6
)


3.8


Avg. Diluted Shares (000s)



29,650



29,703


30,090


30,265


30,420


(2.5
)


(0.2
)




















Core Net Income¹


$
7,546


$
7,571

$
7,912

$
1,889

$
17,399


(56.6
)


(0.3
)

Core EPS¹


$
0.25


$
0.25

$
0.26

$
0.06

$
0.57


(56.1
)


-

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income decreased YoY but increased QoQ.

Net Interest Margin FTE of 2.29% decreased 41 bps YoY, but increased 7 bps QoQ
Prepayment penalty income, customer swap termination fees, 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 $3.0 million (15 bps to the NIM) compared to $2.6 million (13 bps to the NIM) in 3Q23, $0.5 million (3 bps) in 2Q23, $1.1 million (6 bps) in 1Q23, and $2.4 million (12 bps) in 4Q22
Excluding the items in the previous bullet, net interest margin was 2.14% in 4Q23, 2.09% in 3Q23, 2.15% in 2Q23, 2.21% in 1Q23, and 2.58% in 4Q22

The provision for credit losses increased YoY and QoQ.

Net charge-offs (recoveries) were $60,000 in 4Q23 (less than 1 bp of average loans) compared to $(42,000) in 3Q23 (less than (1) bp of average loans), $1.6 million in 2Q23 (9 bps of average loans), $9.2 million in 1Q23 (54 bps of average loans), and $0.8 million in 4Q22 (5 bps of average loans)
1Q23 net charge-offs were primarily related to a commercial business relationship that was placed on nonaccrual in 2Q22

Noninterest income (loss) increased YoY and QoQ.

Back-to-back swap loan closings of $121.6 million in 4Q23 (compared to $120.5 million in 3Q23 and $11.5 million in 2Q23) contributed to the YoY growth in core noninterest income; the Company earns fee income on back-to-back swap loan closings
Net gains (losses) from fair value adjustments were $0.9 million in 4Q23 ($0.02 per share, net of tax), $(1.2) million in 3Q23 ($(0.03) per share, net of tax), $0.3 million in 2Q23 ($0.01 per share, net of tax), $2.6 million in 1Q23 ($0.06 per share, net of tax), and $(0.6) million in 4Q22 ($(0.02) per share, net of tax)
Life insurance proceeds were $0.7 million in 4Q23 ($0.02 per share), $23,000 in 3Q23 (less than $0.01 per share), $0.6 million ($0.02 per share) in 2Q23, and $0.3 million ($0.01 per share) in 4Q22
Loss on the sale of securities was $10.9 million ($0.27 per share, net of tax) in 4Q22 as the Company sold $84.2 million of mortgage-based securities with an approximate yield of 1.17%; proceeds were primarily reinvested in 1Q23 into floating rate securities that had a yield at that time approximating 6.40%
Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $5.8 million in 4Q23, up 64.4% YoY and 28.0% QoQ
4Q23 other fee income includes net realized gains on the sale of assets and other dividends from nonqualified plans that are expected to normalize in future periods

Noninterest expense increased YoY and QoQ.

4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production
Seasonal compensation expense was $4.1 million in 1Q23; seasonal expenses are expected to be less than half in 1Q24
Excluding the effects of immaterial adjustments, core operating expenses were $40.1 million in 4Q23, up 19.3% YoY, and 10.5% QoQ
GAAP noninterest expense to average assets was 1.90% in 4Q23, 1.71% in 3Q23, 1.66% in 2Q23, 1.85% in 1Q23, and 1.58% in 4Q22

Provision for income taxes increased YoY and QoQ.

The effective tax rate was 31.1% in 4Q23, 27.1% in 3Q23, 26.8% in 2Q23, 25.9% in 1Q23, and 20.0% in 4Q22
The 4Q23 effective tax rate increased as a result of preferential tax items having a smaller impact due to higher pre-tax income than estimated in 3Q23 and 2Q23; the 4Q22 effective tax rate had preferential tax items that had a larger impact as a result of lower levels of pre-tax income

Balance Sheet, Credit Quality, and Capital Highlights
































YoY

QoQ


4Q23


3Q23

2Q23

1Q23

4Q22

Change

Change
Averages ()

















Loans

$
6,868


$
6,813

$
6,830

$
6,871

$
6,881

(0.2
)
%

0.8

%
Total Deposits


6,884



6,819


6,900


6,810


6,678

3.1



1.0




















Credit Quality ($000s)

















Nonperforming Loans

$
25,172


$
17,405

$
18,637

$
21,176

$
32,382

(22.3
)
%

44.6

%
Nonperforming Assets


46,153



38,386


39,618


42,157


53,363

(13.5
)


20.2


Criticized and Classified Loans


76,719



74,169


48,675


58,130


68,093

12.7



3.4


Criticized and Classified Assets


97,700



95,150


69,656


79,111


89,073

9.7



2.7


Allowance for Credit Losses/Loans (%)


0.58



0.57


0.57


0.56


0.58

-

bps

1

bp


















Capital

















Book Value/Share

$
23.21


$
23.06

$
23.14

$
22.80

$
22.97

1.0

%

0.7

%
Tangible Book Value/Share


22.54



22.39


22.47


22.14


22.31

1.0



0.7


Tang. Common Equity/Tang. Assets (%)


7.64



7.56


7.70


7.72


7.82

(18
)
bps

8

bps
Leverage Ratio (%)


8.47



8.51


8.54


8.56


8.61

(14
)


(4
)

Average loans decreased YoY but increased QoQ.

Period end net loans totaled $6.9 billion, down 0.4% YoY, but up 0.1% QoQ
Total loan closings were $244.3 million in 4Q23, $241.5 million in 3Q23, $158.8 million in 2Q23, $173.5 million in 1Q23, and $225.2 million in 4Q22; the loan pipeline was $163.1 million at December 31, 2023, down 35.3% YoY and 55.1% QoQ
The diversified loan portfolio is approximately 89% collateralized by real estate with an average loan-to-value ratio of less than 36%
Manhattan office buildings exposure is minimal at 0.6% of net loans

Average total deposits increased YoY and QoQ.

Average noninterest bearing deposits decreased 10.9% YoY, but increased 2.5% QoQ and comprised 12.7% of average total deposits in 4Q23 compared to 14.7% a year ago

Average CDs totaled $2.3 billion, up 73.3% YoY and 2.2% QoQ; approximately $408.6 million of non-swapped CDs are due to mature at a rate of 3.20% in 1Q24

Credit Quality: Nonperforming loans declined YoY but increased QoQ.

Criticized and classified loans were 111 bps of gross loans at 4Q23 compared to 108 bps at 3Q23, 71 bps at 2Q23, 84 bps at 1Q23, and 98 bps at 4Q22
Allowance for credit losses were 159.5% of nonperforming loans at 4Q23 compared to 124.9% at 4Q22 and 225.4% at 3Q23

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased 1.0% YoY and 0.7% QoQ to $23.21 and $22.54, respectively.

The Company paid a dividend of $0.22 per share in 4Q23; repurchased 38,815 shares in 4Q23 at an average price of $15.08, representing a 33% discount to tangible book value; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
Tangible common equity to tangible assets was 7.64% at December 31, 2023, compared to 7.82% at December 31, 2022, and 7.56% at September 30, 2023

Conference Call Information and First Quarter Earnings Release Date

Conference Call Information:

John R. Buran, President and Chief Executive Officer, Tom Buonaiuto, Senior Executive Vice President, Chief of Staff, and Deposit Channel Executive, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Friday, January 26, 2024, at 11:00 AM (ET) to discuss the Company's fourth quarter and full year results and strategy.
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=VQZ8mq4o
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
Replay Access Code: 6289639
The conference call will be simultaneously webcast and archived

First Quarter 2024 Earnings Release Date:

The Company plans to release First Quarter 2024 financial results after the market close on April 23, 2024; followed by a conference call at 9:30 AM (ET) on April 24, 2024.

A detailed announcement will be issued prior to the first 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, 2022 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 -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)





























At or for the three months ended


At or for the year ended

(Dollars in thousands, except
December 31,

September 30,

June 30,

March 31,

December 31,


December 31,

December 31,

per share data)
2023

2023

2023

2023

2022


2023

2022

Performance Ratios ⁽¹⁾



























Return on average assets

0.38
%


0.37
%



0.41
%


0.19
%


0.48
%



0.34
%

0.93
%
Return on average equity

4.84



4.64




5.16



2.37



6.06




4.25


11.44

Yield on average interest-earning assets ⁽²⁾

5.39



5.19




4.84



4.61



4.44




5.01


4.05

Cost of average interest-bearing liabilities

3.68



3.52




3.15



2.80



2.11




3.29


1.13

Cost of funds

3.26



3.13




2.80



2.47



1.84




2.91


0.98

Net interest rate spread during period⁽²⁾

1.71



1.67




1.69



1.81



2.33




1.72


2.92

Net interest margin ⁽²⁾

2.29



2.22




2.18



2.27



2.70




2.24


3.11

Noninterest expense to average assets

1.90



1.71




1.66



1.85



1.58




1.78


1.73

Efficiency ratio ⁽³⁾

76.69



76.76




73.82



79.52



59.55




76.72


56.46

Average interest-earning assets to average interest-bearing liabilities

1.19
X


1.18
X



1.18
X


1.19
X


1.21
X



1.19
X

1.22
X




























Average Balances



























Total loans, net
$
6,867,927


$
6,813,019



$
6,829,648


$
6,871,192


$
6,881,245



$
6,845,349

$
6,741,590

Total interest-earning assets

8,076,991



8,023,237




7,991,756



8,002,376



8,045,691




8,023,793


7,835,654

Total assets

8,569,002



8,505,346




8,462,442



8,468,317



8,518,019




8,501,564


8,307,137

Total deposits

6,884,037



6,819,397




6,899,617



6,810,485



6,678,383




6,853,494


6,451,746

Total interest-bearing liabilities

6,813,909



6,771,860




6,756,859



6,703,558



6,662,209




6,761,877


6,444,805

Stockholders' equity

669,819



675,041




672,835



683,058



676,165




675,151


672,742





























Per Share Data



























Book value per common share ⁽⁴⁾
$
23.21


$
23.06



$
23.14


$
22.80


$
22.97



$
23.21

$
22.97

Tangible book value per common share ⁽⁵⁾
$
22.54


$
22.39



$
22.47


$
22.14


$
22.31



$
22.54

$
22.31





























Stockholders' Equity



























Stockholders' equity
$
669,837


$
666,521



$
670,247


$
672,345


$
677,157



$
669,837

$
677,157

Tangible stockholders' equity

650,664



647,234




650,842



652,818



657,504




650,664


657,504





























Consolidated Regulatory Capital Ratios



























Tier 1 capital
$
737,732


$
736,744



$
734,754


$
736,024


$
746,880



$
737,732

$
746,880

Common equity Tier 1 capital

691,754



690,294




688,820



689,732



698,258




691,754


698,258

Total risk-based capital

967,627



965,532




962,784



964,270



975,709




967,627


975,709

Risk Weighted Assets

6,750,301



6,804,478




6,650,222



6,660,145



6,640,542




6,750,301


6,640,542





























Tier 1 leverage capital (well capitalized = 5%)

8.47
%


8.51
%



8.54
%


8.56
%


8.61
%



8.47
%

8.61
%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)

10.25



10.14




10.36



10.36



10.52




10.25


10.52

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

10.93



10.83




11.05



11.05



11.25




10.93


11.25

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

14.33



14.19




14.48



14.48



14.69




14.33


14.69





























Capital Ratios



























Average equity to average assets

7.82
%


7.94
%



7.95
%


8.07
%


7.94
%



7.94
%

8.10
%
Equity to total assets

7.85



7.77




7.91



7.93



8.04




7.85


8.04

Tangible common equity to tangible assets ⁽⁶⁾

7.64



7.56




7.70



7.72



7.82




7.64


7.82





























Asset Quality



























Nonaccrual loans ⁽⁷⁾
$
23,709


$
17,405



$
18,637


$
21,176


$
29,782



$
23,709

$
29,782

Nonperforming loans

25,172



17,405




18,637



21,176



32,382




25,172


32,382

Nonperforming assets

46,153



38,386




39,618



42,157



53,363




46,153


53,363

Net charge-offs (recoveries)

60



(42
)



1,560



9,234



811




10,812


1,535





























Asset Quality Ratios



























Nonperforming loans to gross loans

0.36
%


0.25
%



0.27
%


0.31
%


0.47
%



0.36
%

0.47
%
Nonperforming assets to total assets

0.54



0.45




0.47



0.50



0.63




0.54


0.63

Allowance for credit losses to gross loans

0.58



0.57




0.57



0.56



0.58




0.58


0.58

Allowance for credit losses to nonperforming assets

87.02



102.19




97.41



91.87



75.79




87.02


75.79

Allowance for credit losses to nonperforming loans

159.55



225.38




207.08



182.89



124.89




159.55


124.89

Net charge-offs (recoveries) to average loans

—



—




0.09



0.54



0.05




0.16


0.02





























Full-service customer facilities

27



27




26



26



25




27


25

⁽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 core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.

⁽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. 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 in periods prior to 1Q23.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
























For the three months ended



For the year ended

December 31,

September 30,

June 30,

March 31,

December 31,



December 31,

December 31,
(In thousands, except per share data)
2023

2023

2023

2023

2022



2023

2022
Interest and Dividend Income






















Interest and fees on loans
$
95,616

$
91,466


$
85,377

$
82,889

$
81,033




$
355,348

$
293,287

Interest and dividends on securities:






















Interest

10,803


10,383



9,172


7,240


6,511





37,598


20,861

Dividends

34


33



30


29


24





126


60

Other interest income

2,310


2,154



1,982


1,959


1,702





8,405


2,418

Total interest and dividend income

108,763


104,036



96,561


92,117


89,270





401,477


316,626
























Interest Expense






















Deposits

53,284


50,066



46,249


39,056


27,226





188,655


47,285

Other interest expense

9,394


9,543



6,934


7,799


7,843





33,670


25,725

Total interest expense

62,678


59,609



53,183


46,855


35,069





222,325


73,010
























Net Interest Income

46,085


44,427



43,378


45,262


54,201





179,152


243,616

Provision (benefit) for credit losses

998


596



1,416


7,508


(12
)




10,518


5,081

NetInterest Income After Provision (Benefit) for Credit Losses

45,087


43,831



41,962


37,754


54,213





168,634


238,535
























Noninterest Income (Loss)






















Banking services fee income

2,824


2,636



1,780


1,411


1,231





8,651


5,122

Net loss on sale of securities

—


—



—


—


(10,948
)




—


(10,948
)
Net gain on sale of loans

—


—



54


54


46





108


119

Net gain on disposition of assets

—


—



—


—


104





—


104

Net gain (loss) from fair value adjustments

906


(1,246
)


294


2,619


(622
)




2,573


5,728

Federal Home Loan Bank of New York stock dividends

658


624



534


697


658





2,513


2,000

Life insurance proceeds

697


23



561


—


286





1,281


1,822

Bank owned life insurance

1,173


1,157



1,134


1,109


1,126





4,573


4,487

Other income

1,144


115



663


967


467





2,889


1,575

Total noninterest income (loss)

7,402


3,309



5,020


6,857


(7,652
)




22,588


10,009
























Noninterest Expense






















Salaries and employee benefits

23,359


20,346



19,690


22,562


18,178





85,957


84,374

Occupancy and equipment

3,698


3,371



3,534


3,793


3,701





14,396


14,606

Professional services

2,523


2,494

Full story available on Benzinga.com

Company Name:	Flushing Financial Corporation
Stock Symbol:	FFIC
Market:	NASDAQ
Website:	flushingbank.com

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