Flushing Financial Corporation Reports Third Quarter 1997 Results.FLUSHING Flushing, part of Queens, New York City, United States Flushing, former village, now in N Queens borough of New York City, SE N.Y.; chartered 1645, inc. into Greater New York City with Queens in 1898. , N.Y.--(BUSINESS WIRE)--October 27, 1997--Flushing Financial Corporation (Nasdaq: FFIC FFIC Fitness Franchise Information Center (Camarillo, CA) FFIC Fault-Free Integrated Circuit ), the parent holding company for Flushing Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. , F.S.B., today announced net income for the third quarter increased 31.3 percent to $2.2 million, or $0.30 per share, from the $1.7 million, or $0.20 per share, earned in the quarter ended September September: see month. 30, 1996. Net income for the nine months ended September 30, 1997 increased 24.5 percent to $6.2 million, or $0.84 per share, as compared to net income of $5.0 million, or $0.62 per share, for the nine months ended September 30, 1996. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. F. McConnell McConnell may refer to:
Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. of 21.1 percent. Our assets have grown by 23.8 percent to $960.1 million since December December: see month. 31, 1996, resulting from the acquisition of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Federal Savings Bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks and growth in multi-family, commercial and residential real estate loans, which reflect the implementation of our strategic plan to pursue structured and orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. growth. "Our positive trend in earnings continued during the third quarter. Cash earnings, which is increasingly being viewed by the financial community as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of an institution's ability to build capital, increased by 30 percent during the quarter and 28 percent during the nine months, as compared to prior year's performance. "On September 9, 1997, we closed the announced acquisition of New York Federal Savings Bank, a privately held federal savings bank, in keeping with our pursuit of an expansion strategy that is accretive to earnings. This will enable us to expand our operations into Small Business Administration lending as well as strengthen our capabilities in the commercial real estate and multi-family lending markets." Cash Earnings Cash earnings, which exclude the net tax effect of non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) associated with the stock related benefit plans and goodwill, totaled $2.4 million, or $0.33 per share, for the third quarter of 1997, as compared to $1.9 million, or $0.23 per share for the comparable 1996 quarter. Cash earnings for the nine months ended September 30, 1997 were $6.8 million, or $0.93 per share, as compared to $5.3 million, or $0.66 per share, for the nine months ended September 30, 1996. The cash return on average equity for the quarter ended September 30, 1997 increased to 7.2 percent from 5.4 percent for the comparable 1996 period. Cash return on average equity for the nine months ended September 30, 1997 was 6.9 percent, a 34.4 percent increase over the cash return on average equity for the nine months ended September 30, 1996 of 5.2 percent. Cash return on average assets for the third quarter of 1997 was 1.1 percent, as compared to 1.0 percent for the quarter ended September 30, 1996. The cash return on average assets for the nine months ended September 30, 1997 was also 1.1 percent as compared to 1.0 percent for the comparable 1996 period. Earnings Summary ( Quarter Ended September 30, 1997 For the quarter ended September 30, 1997, net interest income increased 10.9 percent to $8.2 million from $7.4 million in the comparable 1996 period. This is principally due to an increase in the average earning balances of mortgage loans, partially offset by an increase in deposit interest expense and increased utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of borrowed funds. Results were also affected during the month of September 1997 as the Bank acquired New York Federal Savings Bank and incorporated $77.1 million of gross loans from New York Federal into the Bank's loan portfolio. Non-interest income during the third quarter of 1997 increased by $465,000 to $774,000 for the quarter ended September 30, 1997 as compared to $309,000 for the third quarter of 1996. The increase is primarily due to receipt of fees associated with a construction project that was completed in prior years. Non-interest expense increased by $376,000 to $5.0 million for the three months ended September 30, 1997 as compared to $4.6 million for the quarter ended September 30, 1996. This increase in non-interest expense as a result of the deliberate Willful; purposeful; determined after thoughtful evaluation of all relevant factors; dispassionate. To act with a particular intent, which is derived from a careful consideration of factors that influence the choice to be made. growth of our institution still resulted in an improvement in our efficiency ratio from 58.5 percent for the three months ended September 30, 1996 to the present 54.8 percent for the quarter ended September 30, 1997. Earnings Summary ( Nine Months Ended September 30, 1997 Net interest income for the nine months ended September 30, 1997 totaled $23.8 million, an increase of 11.8 percent, or $2.5 million as compared to $21.3 million for the nine months ended September 30, 1996. This is principally due to an increase in the average earning balances of mortgage loans, partially offset by an increase in deposit interest expense and increased utilization of borrowed funds. Results were also affected during the month of September 1997 as the a result of the acquisition of New York Federal Savings Bank. Non-interest income during the nine months ended September 30, 1997 increased by $52,000 to $1.6 million as compared to the comparable 1996 period. The increase is primarily due to receipt of fees associated with a construction project that was completed in prior years, offset by a decline in gain on sales of securities. Non-interest expense increased by $609,000 to $14.0 million for the nine months ended September 30, 1997 as compared to $13.4 million for the nine months ended September 30, 1996. This increase in non-interest expense as a result of the deliberate growth of our institution still resulted in an improvement in our efficiency ratio from 57.1 percent for the nine months ended September 30, 1996 to the present 54.7 percent for the nine months ended September 30, 1997. Balance Sheet Summary At September 30, 1997, total assets were $960.1 million, an increase of $184.8 million, or 23.8 percent, from the December 31, 1996 balance of $775.3 million. The growth in assets is primarily due to a 48.2 percent increase, or $187.9 million, in gross loans, of which $77.1 million was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the acquisition of New York Federal Savings in September 1997. This growth is offset in part by a decline of $17.3 million in securities available for sale. Loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and purchases, excluding the New York Federal acquisition, for the third quarter of 1997 totaled $23.6 million for 1-4 family residential mortgage loans, $8.0 million for multi-family real estate loans and $3.5 million for commercial real estate loans. For the nine months ended September 30, 1997, loan originations and purchases, excluding the New York Federal acquisition, totaled $73.2 million for 1-4 family real estate loans, $53.6 million for multi-family real estate loans and $15.8 million for commercial real estate. This compares to the loan originations and purchases activity for the nine months ended September 30, 1996 of $68.2 million for 1-4 family real estate loans, $31.4 million for multi-family real estate loans and $2.4 million for commercial real estate loans. While non-performing assets increased by $114,000 to $3.7 million at September 30, 1997 from $3.6 million at December 31, 1996 as a result of the New York Federal Savings acquisition, the ratio of total non-performing assets as a percentage of total assets continued to improve from 0.5 percent at December 31, 1996 to 0.4 percent at September 30, 1997. By adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to strict underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards and aggressive charge-offs of possible losses from impaired See assistive technology. loans, the Company has continued to strengthen its loan portfolio, as evidenced by the Company's maintenance of a strong ratio of allowance for loan losses to non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. which equaled 189.8 percent at September 30, 1997. Funding the growth in assets was an increase of $62.3 million in deposit accounts from $581.1 million at December 31, 1996 to $643.4 million at September 30, 1997, and increased utilization of Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) advances which totaled $165.1 million at September 30, 1997, bearing a composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate interest rate of 6.29 percent. The Company's borrowing program with the FHLB of New York is consistent with our goal to leverage the Company's highly capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. position when interest rates on FHLB advances are attractive, to fund increases in mortgage lending. Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased $3.1 million from $133.3 million at December 31, 1996 to $136.4 million at September 30, 1997. This increase is due to $6.2 million in net income for the nine months ended September 30, 1997 and a $2.5 million improvement in the net unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. (loss) on securities available for sale, net of taxes. These increases to stockholders' equity are partially offset by $5.6 million in treasury shares purchased through the Company's stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. , as noted below, and $1.2 million in cash dividends paid during 1997. As a result of improving earnings and policies beneficial to shareholders, book value per share continued to improve from $15.73 per share at September 30, 1996 to $17.08 per share at September 30, 1997. The Company announced in June June: see month. and December of 1996 its intention to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1,126,038 shares of the Company's outstanding common stock. As of September 30, 1997, the Company had purchased 956,350 shares at a cost of $17.6 million, leaving 169,688 shares to be repurchased under the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. programs. Total shares outstanding at September 30, 1997 were 7,983,423. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements in this Press Release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, strategies, economic performance and trends and other statements that are not descriptions of historical facts may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. 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, factors discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and in other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company has no obligation to update these forward-looking statements. Flushing Financial Corporation is the holding company for Flushing Savings Bank, F.S.B., a federally chartered stock savings bank insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ). The Bank conducts its business through eight banking offices located in Queens, Brooklyn Brooklyn (br  k`lĭn), borough of New York City (1990 pop. 2,300,664), 71 sq mi (184 sq km), coextensive with Kings co., SE N.Y. , Manhattan Manhattan, indigenous people of North AmericaManhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). and Nassau County Nassau County is the name of two counties in the United States of America:
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, December 31,
1997 1996
ASSETS
Cash and due from banks $11,048,485 $7,472,155
Federal funds sold and
overnight interest-earning
deposits 30,140,917 26,953,000
Securities available for sale:
Mortgage-backed securities 183,442,123 141,038,177
Other securities 131,126,896 190,856,985
Loans:
1-4 Family residential
mortgage loans 289,150,352 236,518,280
Multi-family mortgage loans 213,970,709 104,870,271
Commercial real estate loans 70,861,329 46,697,783
Small Business
Administration loans 2,003,430 ---
Consumer loans 1,683,579 1,679,403
Less: Unearned loan fees (1,724,468) (1,548,287)
Allowance for loan losses (6,467,920) (5,436,832)
Net loans 569,477,011 382,780,618
Interest and dividends receivable 6,636,324 6,896,504
Real estate owned, net 332,970 1,218,296
Bank premises and equipment, net 6,298,548 5,796,166
Goodwill 5,457,862 ---
Other assets 16,168,378 12,330,603
Total assets $960,129,514 $775,342,504
LIABILITIES
Due to depositors:
Non-interest bearing $ 19,169,077 $ 10,292,645
Interest bearing 624,269,182 570,761,937
Mortgagors' escrow deposits 7,205,803 3,424,764
Borrowed funds 165,062,594 51,000,000
Other liabilities 8,033,562 6,582,114
Total liabilities 823,740,218 642,061,460
STOCKHOLDERS' EQUITY
Preferred stock ($0.01 par value;
5,000,000 shares authorized) --- ---
Common stock ($0.01 par value;
20,000,000 shares; 8,910,100
shares issued; 7,983,423 and
8,250,497 shares outstanding
at September 30, 1997 and
December 31, 1996, respectively) 89,101 89,101
Additional paid-in capital 101,490,501 101,277,592
Treasury stock (926,677 and
659,603 shares at
September 30, 1997 and
December 31, 1996,respectively) (17,008,387) (12,065,068)
Unearned compensation -
Employee Benefit Plan (7,339,892) (7,443,267)
Unearned compensation -
Restricted Stock Awards (3,991,499) (4,216,873)
Retained earnings 61,898,907 56,869,884
Net unrealized gain (loss)
on securities available for
sale, net of taxes 1,250,565 (1,230,325)
Total stockholders' equity 136,389,296 133,281,044
Total liabilities and
stockholders' equity $960,129,514 $775,342,504
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months For the nine months
Ended September 30, Ended September 30,
1997 1996 1997 1996
Interest and dividend income
Interest and
fees on loans $11,151,914 $7,549,507 $29,500,105 $20,955,987
Interest and
dividends on
securities:
Taxable interest 5,540,792 6,470,660 16,980,303 18,926,438
Tax-exempt interest 7,869 16,368 23,743 48,352
Dividends 56,573 76,249 192,571 272,542
Other interest income 608,836 106,860 1,266,355 430,502
Total interest and
dividend income 17,365,984 14,219,644 47,963,077 40,633,821
Interest expense
Deposits 6,723,322 6,038,044 19,267,015 17,957,999
Other interest expense 2,409,164 758,952 4,879,570 1,381,415
Total interest
expense 9,132,486 6,796,996 24,146,585 19,339,414
Net interest income 8,233,498 7,422,648 23,816,492 21,294,407
Provision for
loan losses -- 20,010 66,792 321,956
Net interest
income after
provision for
loan losses 8,233,498 7,402,638 23,749,700 20,972,451
Non-interest income
Other fee income 215,297 164,295 702,698 586,928
Net gain on sales of
securities and loans (36,628) (45,402) 12,391 430,935
Other income 595,742 190,011 934,035 578,869
Total non-interest
income 774,411 308,904 1,649,124 1,596,732
Non-interest expense
Salaries and
employee benefits 2,626,316 2,206,730 7,399,528 6,352,054
Occupancy and equipment 494,895 524,944 1,433,310 1,551,036
Professional services 388,280 522,066 1,168,868 1,587,395
Federal deposit
insurance premiums 21,956 500 58,991 1,500
Data processing 261,695 250,026 724,519 1,131,655
Depreciation and
amortization 205,059 253,657 585,231 730,030
Real estate owned
expenses 49,583 102,251 74,926 232,157
Recovery of provision
for deposits at Nationar --- --- --- (449,392)
Other operating expenses 965,184 777,109 2,555,101 2,254,868
Total non-interest
expense 5,012,968 4,637,283 14,000,474 13,391,303
Income before
income taxes 3,994,941 3,074,259 11,398,350 9,177,880
Provision for income taxes
Federal 1,096,948 843,608 3,202,291 2,543,975
State and local 705,425 560,780 1,990,479 1,649,924
Total taxes 1,802,373 1,404,388 5,192,770 4,193,899
Net income $2,192,568 $1,669,871 $6,205,580 $4,983,981
Primary and fully
diluted earnings
per share $0.30 $0.20 $0.84 $0.62
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
At or For the Three Months At or For the Nine Months
Ended September 30, Ended September 30,
1997 1996 1997 1996
Per Share Data
Primary earnings
per share $0.30 $0.20 $0.84 $0.62
Primary number of
average shares
outstanding
for earnings
per share
computation 7,324,998 8,180,777 7,392,849 8,074,946
Book value per share
(based on 7,983,423 and
8,574,997 shares
outstanding at September
30, 1997 and 1996,
respectively) $17.08 $15.73 $17.08 $15.73
Performance Ratios
(Ratios for the quarters ended September 30, 1997 and 1996 are
presented on an annualized basis.)
Return on average
assets 0.97% 0.87% 0.98% 0.89%
Return on average
equity 6.53 4.87 6.27 4.81
Interest rate spread
during period 3.18 3.35 3.28 3.28
Net interest margin 3.81 4.06 3.92 4.01
Non-interest expense
to average assets 2.22 2.41 2.20 2.39
Efficiency ratio 54.77 58.50 54.71 57.10
Average interest-earning
assets to average
interest-bearing
liabilities 1.15x 1.19x 1.16x 1.20x
Cash Earnings
Net income $2,192,568 $1,669,871 $6,205,580 $4,983,981
Non-cash
amortization
of stock plans
and goodwill 407,991 334,500 1,159,991 641,000
Tax effect of
non-cash items (183,596) (150,525) (521,996) (288,450)
Cash earnings $2,416,963 $1,853,846 $6,843,575 $5,336,531
Cash earnings
per share $0.33 $0.23 $0.93 $0.66
Return on
average assets 1.07% 0.96% 1.08% 0.95%
Return on average
equity 7.20 5.40 6.92 5.15
September 30, 1997 December 31, 1996
Selected Financial
Ratios and Other Data
Regulatory capital ratios
(for Flushing Savings Bank only): 10.17% 12.67%
Tangible capital
(minimum requirement = 1.5%) 10.17 12.67
Core (minimum requirement = 4%) 21.05 27.43
Total risk-based capital
(minimum requirement = 8%)
Capital ratios:
Average equity to average assets 15.57% 18.17%
Equity to total assets 14.21 17.19
Asset quality ratios:
Non-performing loans to gross loans 0.59% 0.62%
Non-performing assets to total assets 0.39 0.47
Allowance for loan losses to gross loans 1.12 1.39
Allowance for loan losses to total
non-performing assets 172.94 149.94
Allowance for loan losses to total
non-performing loans 189.84 225.79
Full-service customer facilities 7 7
CONTACT: Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Hegarty Executive Vice President Flushing Financial Corporation (718) 961-5400 or John P. Kehoe/Van Negris Kehoe Kehoe or Keogh is the name of a clan that existed in southern Ireland. Many of their descendants then emigrated to America and have spread though out that country making Kehoe/Keogh a fairly common last name. , White, Savage Savage may refer to:
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