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

Flushing Financial Corporation
Flushing Financial Corporation

Record Net Interest Income and Record Low Cost of Funds

John R. Buran, President and CEO Commentary

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.

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”)


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

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

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%

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

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

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.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400

#FF

- Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

At or for the three months ended

March31,

December 31,

September 30,

June 30,

March31,

(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)