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Flushing Financial Corporation Reports 3Q21 GAAP EPS of $0.81 and Record Core EPS of $0.88

Flushing Financial Corporation
·24 min read
GlobeNewswire Inc.

Record Net Interest Income, Loan Pipeline, and Core EPS

John R. Buran, President and CEO Commentary

UNIONDALE, N.Y., Oct. 26, 2021 (GLOBE NEWSWIRE) -- The Company reported third quarter 2021 GAAP EPS of $0.81, up 62.0% YoY, ROAA of 1.26% and ROAE of 15.42%. For the period, Core EPS of $0.88 increased 57.1% YoY with ROAA of 1.38% and ROAE of 16.88%. The strong results were from the successful implementation of our business strategy resulting in the sixth consecutive quarter of record net interest income, a record loan pipeline, and the second consecutive quarter of record core earnings.

“Loans, excluding SBA Payment Protection Program (“PPP”), were flat QoQ but increased 12% YoY. The Company’s loan pipeline increased 35% YoY and 23% QoQ to record levels as the metro New York City economy continues to normalize. Additionally, there have been eight announced or recently closed bank mergers in the Long Island market. The market has $328 billion of deposits and 18% or $60 billion involve a merger participant. As a leading community bank in this market, Flushing Bank is poised to benefit from merger disruption. The combination of an improving economy, broad based and record loan pipelines, and merger disruption should lead to positive loan growth into 2022.”

- John R. Buran, President and CEO

Sixth Consecutive Quarter of Record Net Interest Income; Favorable Outlook. Net interest income of $63.4 million increased 27% YoY and 4% QoQ. NIM expanded 20 bps to 3.34% from 3.14% in 2Q21, while Core NIM increased by 13 bps to 3.27% during the same period. NIM expansion was the result of cost of funds declining 4 bps, while asset yields increased 15 bps, with 8 bps due to the change in hedge fair values, increased purchase accounting accretion, and net prepayment penalty income. The funding mix improved with core deposits totaling 84% of average deposits and average borrowings declined 37% YoY. Weighted average rate on loan closings (ex PPP) rose 13 bps QoQ and the steeper yield curve should have a positive impact on net interest income over time.

Capital Target Achieved; Share Repurchase Activity Resumes. Following the closing of the Empire acquisition approximately one year ago, the Company announced the goal of a TCE ratio of 8% or better by the end of 2021. This target was achieved during 3Q21 even as the Company repurchased 285,643 shares of common stock at an average price of $22.42 per share. Our capital priorities remain to 1) profitabily grow the balance sheet, 2) return dividends to shareholders, and 3) opportunistically repurchase shares.

Key Financial Metrics1

3Q21

2Q21

1Q21

4Q20

3Q20

GAAP:

EPS

$

0.81

$

0.61

$

0.60

$

0.11

$

0.50

ROAA (%)

1.26

0.93

0.93

0.18

0.81

ROAE (%)

15.42

11.95

12.29

2.27

9.94

NIM FTE (%)

3.34

3.14

3.18

3.08

3.00

Core:

EPS

$

0.88

$

0.73

$

0.54

$

0.58

$

0.56

ROAA (%)

1.38

1.11

0.83

0.92

0.91

ROAE (%)

16.88

14.27

10.96

11.67

11.22

Core NIM FTE (%)

3.27

3.14

3.06

3.03

2.98

Efficiency Ratio (%)

52.3

53.4

58.6

57.6

55.4

Credit Quality:

NPAs/Loans&REO (%)

0.31

0.26

0.31

0.31

0.42

LLRs/Loans (%)

0.55

0.64

0.67

0.67

0.65

LLRs/NPLs (%)

179.86

242.55

212.87

214.27

154.66

NCOs/Avg Loans (%)

(0.04

)

0.05

0.17

0.04

0.06

Balance Sheet:

Avg Loans ($B)

$

6.6

$

6.7

$

6.7

$

6.4

$

5.9

Avg Dep ($B)

$

6.4

$

6.5

$

6.3

$

5.5

$

5.0

Book Value/Share

$

21.78

$

21.16

$

20.65

$

20.11

$

20.78

Tangible BV/Share

$

21.13

$

20.51

$

19.99

$

19.45

$

20.22

TCE/TA (%)

8.04

7.80

7.60

7.52

8.10

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

3Q21 Highlights

  • Record net interest income up 3.8% QoQ and 26.9% YoY to $63.4 million, due to a decrease in funding costs and an increase in asset yields from an increase in hedge fair values, purchase accounting accretion, and net prepayment penalty income; core net interest income was up 1.5% QoQ and 24.9% YoY to $62.1 million

  • Net interest margin FTE increased 20 bps QoQ and 34 bps YoY to 3.34%, and core net interest margin FTE was up 13 bps QoQ and 29 bps YoY to 3.27%; Core NIM expansion QoQ primarily was due to an improvement in funding costs and a change in balance sheet mix

  • Period end loans, excluding PPP, were flat QoQ but increased 11.6% YoY; loan closings were $243.9 million in 3Q21, down 24.8% QoQ but up 56.8% YoY

  • Average deposits declined 1.6% QoQ, but increased 28.2% YoY to $6.4 billion, with core deposits 84% of total average deposits

  • Loan pipeline increased 34.7% YoY to a record $530.7 million

  • Benefit for credit losses was $6.9 million due to a better economic outlook, strong LTVs, and improving credit metrics; net recoveries were $0.6 million or 4 bps of average loans in 3Q21

  • NPAs increased 14.9% QoQ to $20.2 million, but down 18.6% YoY; criticized and classified assets were down 0.4% QoQ to $68.9 million (representing 1.04% of loans)

  • Tangible Common Equity to Tangible Assets improved to 8.04% from 7.80% in 2Q21

  • Repurchased 285,643 shares at an average price of $22.42; dividends and share repurchases were 51.2% of net income in 3Q21

Income Statement Highlights

Y/Y

Q/Q

($000s, except EPS)

3Q21

2Q21

1Q21

4Q20

3Q20

Change

Change

Net Interest Income

$

63,364

$

61,039

$

60,892

$

55,732

$

49,924

26.9

%

3.8

%

(Benefit) Provision for Credit Losses

(6,927

)

(1,598

)

2,820

3,862

2,470

(380.4

)

333.5

Non-interest Income (Loss)

866

(3,210

)

6,311

(1,181

)

1,351

(35.9

)

(127.0

)

Non-interest Expense

36,345

34,011

38,159

46,811

29,985

21.2

6.9

Income Before Income Taxes

34,812

25,416

26,224

3,878

18,820

85.0

37.0

Provision for Income Taxes

9,399

6,158

7,185

417

4,489

109.4

52.6

Net Income

$

25,413

$

19,258

$

19,039

$

3,461

$

14,331

77.3

32.0

Diluted EPS

$

0.81

$

0.61

$

0.60

$

0.11

$

0.50

62.0

32.8

Avg. Diluted Shares (000s)

31,567

31,677

31,604

30,603

28,874

9.3

(0.3

)

Core Net Income1

$

27,829

$

22,994

$

16,973

$

17,784

$

16,168

72.1

21.0

Core EPS1

$

0.88

$

0.73

$

0.54

$

0.58

$

0.56

57.1

20.5

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $63.4 million in 3Q21 (an increase of 26.9% YoY and 3.8% QoQ), $61.0 million in 2Q21, $60.9 million in 1Q21, $55.7 million in 4Q20, and $49.9 million in 3Q20.

  • Net interest margin, FTE (“NIM”) of 3.34%, increased 34 bps YoY and 20 bps QoQ; PPP loans caused a 2 bps positive impact on the NIM in 3Q21, neutral impact in 2Q21, and a drag of 4 bps in 1Q21, 3 bps in 4Q20, and 2 bps in 3Q20

  • Prepayment penalty income from loans and securities, net reversals and recoveries of interest from non-accrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $3.4 million or 19 bps to the NIM compared to $1.9 million (10 bps) in 2Q21, $3.3 million (17 bps) in 1Q21, $2.1 million (11 bps) in 4Q20, and $1.7 million (11 bps) in 3Q20, respectively

  • Excluding the items in the previous bullet, net interest margin was 3.15% in 3Q21 compared to 3.04% in 2Q21, 3.01% in 1Q21, 2.97% in 4Q20, and 2.89% in 3Q20, or an increase of 26 bps YoY and 11 bps QoQ

  • Net PPP loan fees were $1.3 million in 3Q21, $1.2 million in 2Q21, $0.5 million in 1Q21, $0.4 million in 4Q20, and $0.2 million in 3Q20

The Company recorded a benefit for credit losses of $6.9 million in 3Q21 compared to $1.6 million in 2Q21, and provisions for credit losses of $2.8 million in 1Q21, $3.9 million in 4Q20, and $2.5 million in 3Q20.

  • 3Q21 benefit for credit losses ($0.16 per share, net of tax) was driven by the improving economic outlook supported by the low LTVs in the real estate portfolio and low inherent risk in the total portfolio

  • Net charge-offs (recoveries) were $(0.6) million in 3Q21 ((4) bps of average loans), $0.9 million in 2Q21 (5 bps), $2.9 million in 1Q21 (17 bps), $0.6 million in 4Q20 (4 bps), and $0.8 million in 3Q20 (6 bps)

Non-interest income (loss) was $0.9 million in 3Q21, $(3.2) million in 2Q21, $6.3 million in 1Q21, $(1.2) million in 4Q20 and $1.4 million in in 3Q20.

  • Non-interest income included net gains (losses) from fair value adjustments of $(2.3) million in 3Q21 $(0.05) per share, net of tax, $(6.5) million $(0.15) per share, net of tax in 2Q21, $1.0 million $0.02 per share, net of tax in 1Q21, $(4.1) million $(0.11) per share, net of tax in 4Q20, and $(2.2) million $(0.06) per share, net of tax in 3Q20

  • Absent all above items and other immaterial adjustments, core non-interest income was $3.2 million in 3Q21, down 11.5% YoY, and 1.6% QoQ

Non-interest expense totaled $36.3 million in 3Q21 (an increase of 21.2% YoY and 6.9% QoQ), compared to $34.0 million in 2Q21, $38.2 million in 1Q21, $46.8 million in 4Q20, and $30.0 million in 3Q20.

  • 3Q21 non-interest expense includes $2.1 million of pre-tax merger charges ($0.05 per share, net of tax)

  • 2Q21 non-interest expense includes $0.5 million of pre-tax merger benefits primarily related to a refund received from a data processing vendor ($(0.01) per share, net of tax)

  • 1Q21 non-interest expense includes $1.0 million of pre-tax merger charges ($0.02 per share, net of tax); 1Q21 includes $3.3 million of seasonal compensation expense

  • 4Q20 non-interest expense includes $5.3 million pre-tax merger charges ($0.14 per share, net of tax) and $7.8 million pre-tax debt prepayment penalties ($0.20 per share, net of tax)

  • 3Q20 non-interest expense includes merger charges of $0.4 million ($0.01 per share, net of tax)

  • Excluding the above items and other immaterial adjustments, core operating expenses were $34.1 million in 3Q21, up 15.4% YoY, but down 0.7% QoQ

  • The efficiency ratio was 52.3% in 3Q21, 53.4% in 2Q21, 58.6% in 1Q21, 57.6% in 4Q20, and 55.4% in 3Q20

The provision for income taxes was $9.4 million in 3Q21, compared to $6.2 million in 2Q21, $7.2 million in 1Q21, $0.4 million in 4Q20, and $4.5 million in 3Q20.

  • The effective tax rate was 27.0% in 3Q21, 24.2% in 2Q21, 27.4% in 1Q21, 10.8% in 4Q20, and 23.9% in 3Q20

  • 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

Y/Y

Q/Q

($000s, except per share data)

3Q21

2Q21

1Q21

4Q20

3Q20

Change

Change

Average Loans And Deposits

Loans

$

6,633

$

6,687

$

6,700

$

6,376

$

5,904

12.3

%

(0.8

)%

Deposits

6,408

6,511

6,285

5,515

4,999

28.2

(1.6

)

Credit Quality

Nonperforming Loans

$

20,217

$

17,592

$

21,186

$

21,073

$

24,792

(18.5

)%

14.9

%

Nonperforming Assets

20,217

17,592

21,221

21,108

24,827

(18.6

)

14.9

Criticized and Classified Assets

68,913

69,161

63,130

71,691

42,181

63.4

(0.4

)

Allowance for Credit Losses/Loans (%)

0.55

0.64

0.67

0.67

0.65

(10

)bps

(9

)bps

Capital

Book Value/Share

$

21.78

$

21.16

$

20.65

$

20.11

$

20.78

4.8

%

2.9

%

Tangible Book Value/Share

21.13

20.51

19.99

19.45

20.22

4.5

3.0

Tang. Common Equity/Tang. Assets (%)

8.04

7.80

7.60

7.52

8.10

(6

)bps

24

bps

Leverage Ratio (%)

8.83

8.50

8.44

8.38

9.03

(20

)

33

Average loans were $6.6 billion, an increase of 12.4% YoY, but a decline of 0.8% QoQ.

  • Total loan closings were $243.9 million in 3Q21, $324.4 million in 2Q21, $322.9 million in 1Q21, $316.0 million in 4Q20, and $155.6 million in 3Q20

  • The loan pipeline increased to a record $530.7 million at September 30, 2021, up 34.7% YoY and 22.7% QoQ

  • PPP loans were $130.8 million at 3Q21, $197.3 million at 2Q21, $251.0 million at 1Q21, $151.9 million at 4Q20, and $111.6 million at 3Q20; forgiven PPP loans were $66.5 million in 3Q21, $69.2 million in 2Q21 and $24.1 million in 1Q21; unamortized net PPP fees were $3.2 million at September 30, 2021

  • Period end loans, excluding PPP loans, totaled $6.5 billion, up 11.6% YoY and flat QoQ

Average Deposits totaled $6.4 billion, increasing 28.2% YoY, but down 1.6% QoQ.

  • Average core deposits (non-CD deposits) increased to 83.8% of total average deposits (including escrow deposits) in 3Q21, compared to 77.9% a year ago

  • Average non-interest bearing deposits increased 58.3% YoY and 1.1% QoQ and comprised 14.6% of total average deposits (including escrow deposits) in 3Q21 compared to 11.8% a year ago

Credit Quality; Non-performing loans totaled $20.2 million in 3Q21, $17.6 million in 2Q21, $21.2 million in 1Q21, $21.1 million in 4Q20 and $24.8 million in 3Q20.

  • Non-performing assets totaled $20.2 million, down 18.6% YoY, but up 14.9% QoQ

  • Criticized and classified assets totaled $68.9 million in 3Q21 (104 bps of loans), $69.2 million at 2Q21 (103 bps), $63.1 million at 1Q21 (94 bps), $71.7 million at 4Q20 (107 bps), and $42.2 million at 3Q20 (71 bps)

  • Loans classified as troubled debt restructured (TDR) totaled $13.1 million compared to $15.5 million in 2Q21 and $5.1 million a year ago

  • Active COVID-19 forbearances totaled 38 loans with a principal balance of $162.0 million at September 30, 2021, with $121.8 million making interest payments and only $40.2 million (0.6% of loans) with full payment deferrals; over 57% of the forbearances are scheduled to exit forbearance by year end 2021

  • Over 87% of gross loans are collateralized by real estate and these loans have an average loan-to-value ratio of <38% as of September 30, 2021

  • Allowance for credit losses were 0.55% of loans at 3Q21 compared to 0.64% at 2Q21 and 0.65% a year ago

  • Allowance for credit losses were 179.9% of nonperforming loans at 3Q21 compared to 154.7% a year ago

Capital; Book value per common share increased to $21.78 at 3Q21 compared to $21.16 at 2Q21, $20.65 at 1Q21, $20.11 at 4Q20, and $20.78 at 3Q20; tangible book value per common share, a non-GAAP measure, was $21.13 at 3Q21, $20.51 at 2Q21, $19.99 at 1Q21, $19.45 in 4Q20, and $20.22 in 3Q20.

  • The Company paid a dividend of $0.21 per share in 3Q21

  • 285,643 shares were repurchased at an average price of $22.42 in 3Q21

  • As of the end of 3Q21, 999,163 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 8.04% at 3Q21 compared to 8.10% a year ago

  • The Company and the Bank remain well capitalized under all applicable regulatory requirements

  • The leverage ratio was 8.83% in 3Q21 versus 9.03% in 3Q20

Conference Call Information And Fourth 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, October 27, 2021, at 9:30 AM (ET) to discuss the Company’s third quarter 2021 results and strategy.

  • Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657

  • Webcast: https://services.choruscall.com/links/ffic211027.html

  • Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658

  • Replay Access Code: 10151674

  • The conference call will be simultaneously webcast and archived through October 27, 2022

Fourth Quarter 2021 Earnings Release Date:

The Company plans to release Fourth Quarter 2021 and full year 2021 financial results after the market close on January 27, 2022; followed by a conference call at 9:30 AM (ET) on January 28, 2022.

A detailed announcement will be issued prior to the fourth 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®, 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. 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, 2020 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

Tag: FF

- Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

At or for the three months ended

At or for the nine months ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(Dollars in thousands, except per share data)

2021

2021

2021

2020

2020

2021

2020

Performance Ratios (1)

Return on average assets

1.26

%

0.93

%

0.93

%

0.18

%

0.81

%

1.04

%

0.58

%

Return on average equity

15.42

11.95

12.29

2.27

9.94

13.24

7.30

Yield on average interest-earning assets (2)

3.84

3.69

3.77

3.82

3.84

3.77

3.88

Cost of average interest-bearing liabilities

0.61

0.66

0.69

0.86

0.98

0.65

1.27

Cost of funds

0.53

0.57

0.61

0.77

0.89

0.57

1.16

Net interest rate spread during period (2)

3.23

3.03

3.08

2.96

2.86

3.12

2.61

Net interest margin (2)

3.34

3.14

3.18

3.08

3.00

3.22

2.77

Non-interest expense to average assets

1.80

1.65

1.87

2.43

1.69

1.77

1.70

Efficiency ratio (3)

52.28

53.38

58.58

57.56

55.37

54.72

59.12

Average interest-earning assets to average interest-bearing liabilities

1.21

X

1.19

X

1.18

X

1.17

X

1.16

X

1.19

X

1.15

X

Average Balances

Total loans, net

$

6,633,301

$

6,686,888

$

6,700,476

$

6,375,516

$

5,904,051

$

6,673,309

$

5,881,858

Total interest-earning assets

7,608,317

7,790,174

7,667,217

7,243,472

6,675,896

7,688,354

6,734,979

Total assets

8,072,918

8,263,553

8,147,714

7,705,407

7,083,028

8,161,121

7,131,850

Total due to depositors

5,406,423

5,495,936

5,363,647

4,708,760

4,353,560

5,422,158

4,442,202

Total interest-bearing liabilities

6,310,859

6,532,891

6,477,871

6,169,574

5,731,899

6,439,928

5,865,045

Stockholders' equity

659,288

644,690

619,647

609,463

576,512

641,354

570,198

Per Share Data

Book value per common share (4)

$

21.78

$

21.16

$

20.65

$

20.11

$

20.78

$

21.78

$

20.78

Tangible book value per common share (5)

$

21.13

$

20.51

$

19.99

$

19.45

$

20.22

$

21.13

$

20.22

Stockholders' Equity

Stockholders' equity

$

668,096

$

655,167

$

639,201

$

618,997

$

586,406

$

668,096

$

586,406

Tangible stockholders' equity

648,039

634,959

618,839

598,476

570,571

648,039

570,571

Consolidated Regulatory Capital Ratios

Tier 1 capital

$

711,276

$

697,591

$

679,343

$

662,987

$

630,380

$

711,276

$

630,380

Common equity Tier 1 capital

661,340

649,367

636,071

621,247

593,344

661,340

593,344

Total risk-based capital

832,255

823,494

806,922

794,034

740,499

832,255

740,499

Risk Weighted Assets

6,194,207

6,344,076

6,281,136

6,287,598

5,381,938

6,194,207

5,381,938

Tier 1 leverage capital
(well capitalized = 5%)

8.83

%

8.50

%

8.44

%

8.38

%

9.03

%

8.83

%

9.03

%

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

10.68

10.24

10.13

9.88

11.02

10.68

11.02

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

11.48

11.00

10.82

10.54

11.71

11.48

11.71

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

13.44

12.98

12.85

12.63

13.76

13.44

13.76

Capital Ratios

Average equity to average assets

8.17

%

7.80

%

7.61

%

7.91

%

8.14

%

7.86

%

8.00

%

Equity to total assets

8.27

8.03

7.83

7.76

8.30

8.27

8.30

Tangible common equity to tangible assets (6)

8.04

7.80

7.60

7.52

8.10

8.04

8.10

Asset Quality

Non-accrual loans (7)

$

18,292

$

17,391

$

18,604

$

18,325

$

24,792

$

18,292

$

24,792

Non-performing loans

20,217

17,592

21,186

21,073

24,792

20,217

24,792

Non-performing assets

20,217

17,592

21,221

21,108

24,827

20,217

24,827

Net charge-offs (recoveries)

(619

)

902

2,865

646

837

3,148

2,993

Asset Quality Ratios

Non-performing loans to gross loans

0.31

%

0.26

%

0.31

%

0.31

%

0.42

%

0.31

%

0.42

%

Non-performing assets to total assets

0.25

0.22

0.26

0.26

0.35

0.25

0.35

Allowance for loan losses to gross loans

0.55

0.64

0.67

0.67

0.65

0.55

0.65

Allowance for loan losses to
non-performing assets

179.86

242.55

212.52

213.91

154.44

179.86

154.44

Allowance for loan losses to
non-performing loans

179.86

242.55

212.87

214.27

154.66

179.86

154.66

Net charge-offs (recoveries) to average loans

(0.04

)

0.05

0.17

0.04

0.06

0.06

0.07

Full-service customer facilities

24

25

25

25

20

24

20

(See footnotes on next page)

(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 non-interest expense (excluding merger expense, OREO expense, prepayment penalty on borrowings, the net gain/loss from the sale of OREO and net amortization of purchase accounting adjustments) by the total of net interest income (excluding net gains and losses from fair value adjustments on qualifying hedges and net amortization of purchase accounting adjustments) and non-interest income (excluding life insurance proceeds, net gains and losses from the sale or disposition of securities, assets and fair value adjustments).

(4) Calculated by dividing stockholders’ equity by shares outstanding.
(5) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less intangible assets (goodwill, net of deferred taxes). See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(6) See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(7) Excludes performing non-accrual TDR loans.

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

For the three months ended

For the nine months ended

September 30,

June 30,

March 31,

December 31,

September 30,

September 30,

September 30,

(In thousands, except per share data)

2021

2021

2021

2020

2020

2021

2020

Interest and Dividend Income

Interest and fees on loans

$

69,198

$

67,999

$

69,021

$

66,120

$

60,367

$

206,218

$

182,033

Interest and dividends on securities:

Interest

3,706

3,685

3,072

2,813

3,525

10,463

12,963

Dividends

7

7

8

8

9

22

35

Other interest income

42

51

36

30

13

129

325

Total interest and dividend income

72,953

71,742

72,137

68,971

63,914

216,832

195,356

Interest Expense

Deposits

4,705

5,539

6,105

6,470

7,093

16,349

35,842

Other interest expense

4,884

5,164

5,140

6,769

6,897

15,188

20,047

Total interest expense

9,589

10,703

11,245

13,239

13,990

31,537

55,889

Net Interest Income

63,364

61,039

60,892

55,732

49,924

185,295

139,467

(Benefit) provision for credit losses

(6,927

)

(1,598

)

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