Flushing Financial Corporation reports fourth quarter & annual 1996 earnings.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)--Jan. 31, 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. , FSB (FrontSide Bus) See system bus. FSB - front side bus , today reported fourth quarter 1996 net income of $1.7 million, equal to $0.22 per share, as compared to $1.1 million earned in the similar period a year ago. Net income for the year ended December December: see month. 31, 1996 was $6.7 million, equal to $0.84 per share, as compared to $3.3 million earned in fiscal 1995. 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:
"In addition to increased profitability, we continued to improve asset quality by all standard measures, maintaining a controlled rate of growth and employing 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. In light of our capital strength and continuing earnings performance in 1996, the Board of Directors initiated payment of cash dividends and authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: purchasing shares in the open market under programs intended 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 approximately 13% of our outstanding common stock. "As we have said previously, our goal is to grow this institution in a manner that will enhance shareholder value through achieving an appropriate and sustainable rate of return on our shareholder's investment in the Company. We believe we have the management team, strategy and capital position to implement that plan effectively. We intend to strengthen our market share position through both internal growth and, where appropriate, through acquisition, and will take the steps necessary to continue to maintain and enhance our reputation as a quality, community-involved financial institution." Fourth Quarter Ended December 31, 1996 -- Earnings Summary Net interest income for the quarter ended December 31, 1996 was $7.5 million, an increase of $1.7 million, or 29.68%, from $5.8 million for the fourth quarter of 1995. This is primarily due to an increase in the average earning balances of mortgage loans and securities, partially offset by 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 and an increase in deposit interest expense. Non-interest income in the 1996 fourth quarter decreased by $320,000 from the similar period a year ago. This is due primarily to a loss of $305,000 on the sale of securities experienced during the fourth quarter of 1996. Non-interest expense declined $153,000 from $4.3 million for the three months ended December 31, 1995 to $4.2 million for the three months ended December 31, 1996. This decline is due primarily to a $211,000 recovery of the reserve for possible losses on deposits at Nationar during the 1996 period and a decrease in salaries and employee benefits expense from the 1995 period to the 1996 period as a result of a one time reduction in medical benefit expenses, offset in part by an increase in other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc additional expenses associated with being a publicly held company. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Ended December 31, 1996 -- Earnings Summary The $3.4 million increase in net income from $3.3 million for the year ended December 31, 1995 to $6.7 million for the year ended December 31, 1996 primarily resulted from an increase of $7.0 million, or 31.88%, in net interest income less related tax effect. The increase in net interest income was due primarily to increases in average balances of mortgage loans and securities, partially offset by an increase in deposit interest expense and increased interest expense on Federal Home Loan Bank ("FHLB FHLB Federal Home Loan Bank ") borrowed funds. The average balance of borrowed funds increased $31.3 million from the 1995 year to the 1996 year. Deposit interest expense increased as average balances of higher cost certificate of deposit accounts increased while the average balances of lower cost passbook and money market accounts declined. Balance Sheet Summary At December 31, 1996, total assets were $775.3 million, an increase of $66.9 million, or 9.45%, from the December 31, 1995 balance of $708.4 million. The growth in assets is primarily reflected in a $103.6 million increase in mortgage loans, offset in part by a decline of $49.6 million in securities available for sale. This shift in assets reflects the Company's planned growth in the mortgage loan market. The increase in mortgage loans consisted primarily of a $66.4 million, or 39.06%, increase in the Bank's portfolio of 1-4 family residential mortgage loans and a $35.7 million, or 51.68%, increase in multi-family real estate mortgage loans. Non-performing assets declined by $3.3 million from $6.9 million at December 31, 1995 to $3.6 million at December 31, 1996. Total non-performing assets as a percentage of total assets has consistently declined from 0.97% at December 31, 1995 to 0.47% at December 31, 1996. By adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to its strict underwriting standards and aggressive charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. of possible losses from impaired See assistive technology. loans, the Company has continued to strengthen its loan portfolio, evidenced by the increase in the Company's 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. from 106.61% at December 31, 1995 to 225.79% at December 31, 1996. Deposits grew by $23.7 million from $557.4 million at December 31, 1995 to $581.1 million at December 31, 1996. This increase is due primarily to a $30.2 million increase in certificate of deposit accounts, offset in part by a decline of $6.5 million in lower cost regular savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: , NOW accounts, money market accounts and demand accounts. The Company has also increased its utilization of FHLB advances which totaled $51.0 million at December 31, 1996, bearing a composite rate of 5.85% with original terms ranging from one to three years. The Company continued its borrowing program with the FHLB 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 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, as compared to alternative funding sources, 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. declined by $8.0 million to $133.3 million at December 31, 1996 from $141.3 million at December 31, 1995. This decrease is due primarily to $12.2 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, $623,000 in dividends, and a $2.9 million decline, net of taxes, in the market value of securities available for sale, offset in part by $6.7 million in net income. The Company announced in June June: see month. and December of 1996 its intention to repurchase up to 1,126,038 shares of the Company's outstanding common stock. As of December 31, 1996, the Company had purchased 667,650 shares at a cost of $12.2 million leaving 458,388 shares to be purchased 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 December 31, 1996 were 8,250,497. The Company's capital strength continues to be reflected in the Bank's regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios which exceed in all cases the minimum regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . At December 31, 1996, the core capital ratio was 12.67%, as compared to the minimum requirement of 4%, and the Company's risk-based ratio was 27.43%, as compared to the minimum requirement of 8%. "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 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, FSB, a federally chartered stock savings bank insured by the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). through the Bank Insurance Fund. The Bank conducts its business through seven 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
December 31, 1996 December 31, 1995
ASSETS
Cash and due from banks $7,472,155 $11,883,639
Federal funds sold and overnight
interest-earning deposits 26,953,000 7,438,000
Securities available for sale:
Mortgage-backed securities 141,038,177 179,300,164
Other securities 190,856,985 202,147,039
Loans:
1-4 Family residential mortgage
loans 236,518,280 170,088,462
Multi-family mortgage loans 104,870,271 69,139,758
Commercial real estate loans 46,697,783 45,214,727
Consumer loans 1,679,403 2,328,365
Less: Unearned loan fees (1,548,287) (1,334,991)
Allowance for loan losses (5,436,832) (5,309,859)
Net loans 382,780,618 280,126,462
Interest and dividends receivable 6,896,504 5,879,501
Real estate owned, net 1,218,296 1,869,431
Bank premises and equipment, net 5,796,166 6,114,033
Other assets 12,330,603 13,626,246
Total assets $775,342,504 $708,384,515
LIABILITIES
Due to depositors:
Non-interest bearing $10,292,645 $10,372,448
NOW and money market accounts 46,589,109 47,154,968
Savings accounts 209,689,857 215,577,540
Certificates of deposit 314,482,971 284,302,238
Mortgagors' escrow deposits 3,424,764 2,456,948
Borrowed funds 51,000,000 --
Other liabilities 6,582,114 7,190,167
Total liabilities 642,061,460 567,054,309
STOCKHOLDERS' EQUITY
Preferred stock ($0.01 par value;
5,000,000 shares authorized) -- --
Common stock ($0.01 par value;
20,000,000 shares authorized;
8,250,497 and 8,625,000 shares
outstanding at December 31, 1996
and December 31, 1995,
respectively) 89,234 86,250
Additional paid-in capital 101,520,957 96,514,628
Treasury stock (12,259,816) --
Unearned compensation -
Employee Benefit Plan (7,443,267) (7,680,850)
Unearned compensation -
Restricted Stock Awards (4,265,623) --
Retained earnings 56,869,884 50,777,543
Net unrealized (loss) gain on
securities available for sale,
net of taxes (1,230,325) 1,632,635
Total stockholders' equity 133,281,044 141,330,206
Total liabilities and
stockholders' equity $775,342,504 $708,384,515
-0-
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
Consolidated Statements of Income
For the three months ended For the year ended
December 31, December 31,
1996 1995 1996 1995
Interest and dividend
income
Interest and fees on
loans $8,205,468 $6,149,035 $29,161,455 $24,485,869
Interest and dividends
on securities:
Taxable interest 5,781,452 5,046,541 24,707,890 18,573,668
Tax-exempt interest 14,853 22,470 63,205 106,322
Dividends 75,217 93,795 347,759 429,674
Other interest income 349,898 577,070 780,400 1,110,034
Total interest and
dividend income 14,426,888 11,888,911 55,060,709 44,705,567
Interest expense
Deposits 6,205,443 6,118,361 24,163,442 22,465,268
Other interest expense 756,489 13,886 2,137,904 433,092
Total interest expense 6,961,932 6,132,247 26,301,346 22,898,360
Net interest income 7,464,956 5,756,664 28,759,363 21,807,207
Provision for loan
losses 95,724 77,000 417,680 495,942
Net interest income
after provision for
loan losses 7,369,232 5,679,664 28,341,683 21,311,265
Non-interest income
Other fee income 176,146 180,228 763,074 724,759
Net (loss) gain on sales
of securities and loans (304,681) 79,813 126,254 (316,045)
Amortization of deferred
gain from sale of real
estate -- -- -- 2,784,422
New York State gains
tax refund -- -- -- 386,981
Other income 280,958 212,131 859,827 1,104,399
Total non-interest
income 152,423 472,172 1,749,155 4,684,516
Non-interest expense
Salaries and employee
benefits 1,862,476 2,049,810 8,214,530 7,528,091
Directors' pension expense 20,203 20,203 80,811 717,877
Occupancy and equipment 541,917 488,075 2,092,953 1,994,915
Professional services 425,608 449,951 2,013,003 1,563,181
Federal deposit insurance
premiums 500 48,409 2,000 823,713
Data processing 333,367 252,953 1,465,022 995,642
Depreciation and
amortization 225,816 190,449 955,846 737,665
Real estate owned expenses 86,147 136,569 318,304 539,920
(Recovery) Provision for
deposits at Nationar (210,704) -- (660,096) 660,096
Conversion expenses -- -- -- 2,221,832
Other operating 887,920 689,486 3,082,180 2,457,077
Total non-interest
expense 4,173,250 4,325,905 17,564,553 20,240,009
Income before income
taxes 3,348,405 1,825,931 12,526,285 5,755,772
Provision for income taxes
Federal 995,542 442,603 3,539,517 1,497,271
State and local 621,449 316,023 2,271,373 972,879
Total taxes 1,616,991 758,626 5,810,890 2,470,150
Net income $1,731,414 $1,067,305 $6,715,395 $3,285,622
-0-
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
Selected Consolidated Financial Data
At or For the three months At or For the year ended
December 31, December 31,
1996 1995 1996 1995
Per Share Data (1)(2)
Primary earnings per share $0.22 Not Meaningful $0.84 Not Meaningful
Primary number of average
shares outstanding for
earnings per share
computation 7,753,438 7,935,552 8,009,482 7,935,552
Book value per share $16.15 $16.39 $16.15 $16.39
Total number of shares
outstanding 8,250,497 8,625,000 8,250,497 8,625,000
Performance Ratios
Return on average assets 0.90% 0.63% 0.89% 0.53%
Return on average equity 5.21 5.05 4.90 6.08
Interest rate spread during
period 3.31 3.40 3.29 3.51
Net interest margin 4.03 3.65 4.01 3.74
Non-interest expense to
average assets 2.16 2.57 2.33 3.26
Efficiency ratio 57.14 68.09 58.33 64.69
Average interest-earning
assets to average
Interest-bearing liabilities 1.19x 1.07x 1.20x 1.06x
December 31, 1996 December 31, 1995
Selected Financial Ratios
and Other Data
Regulatory capital ratios
(for Flushing Savings Bank,
FSB only):
Tangible capital
(minimum requirement = 1.5%) 12.67% 14.85%
Core capital
(minimum requirement = 4%) 12.67 14.85
Total risk-based capital
(minimum requirement = 8%) 27.43 30.48
Capital ratios:
Average equity to average assets 18.17% 8.70%
Equity to total assets 17.19 19.95
Asset quality ratios:
Non-performing loans to gross loans 0.62% 1.74%
Non-performing loans to total assets 0.47 0.97
Allowance for loan losses to gross
loans 1.39 1.85
Allowance for loan losses to total
non-performing assets 149.94 77.52
Allowance for loan losses to total
non-performing loans 225.79 106.61
Full-service customer facilities 7 7
(1) The unreleased shares held in the Company's Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per share. (2) The Company completed its initial public offering on November November: see month. 21, 1995. Earnings of the Company from the period November 21st through December 31, 1995 were $655,000 which, based on 7,935,552 weighted average shares outstanding for the same period, equals $0.08 per share. 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 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. / Van Negris Kehoe, White, Savage Savage may refer to:
(212) 888-1616 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion