Flushing Financial Corporation reports third quarter 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)--Oct. 18, 1996--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 third quarter 1996 net income of $1.7 million, equal to $0.20 per share. Net income for the comparable third quarter of 1995 was $2.1 million. For the nine months ended September September: see month. 30, 1996, the Company reported net income of $5.0 million, equal to $0.62 per share, compared to net income of $2.2 million for the 1995 period. Third Quarter Ended September 30, 1996 Earnings Summary Net interest income increased by $2.4 million, or 46.81%, in the third quarter of 1996 as compared to the similar period in 1995. This is primarily due to an increase in the average earning balances of mortgage loans and securities, partially offset by an increase in deposit interest expense due to an increase in the average balances of higher cost certificate of deposit accounts and a decline in the average balances of lower cost passbook and money market accounts. Interest expense also increased due to greater utilization of borrowed funds. Non-interest income decreased by $1.6 million in the quarter ended September 30, 1996 as compared to the similar period in 1995, primarily because the 1995 period benefited from non-recurring income consisting of $1.8 million in amortization of gain from the sale of real estate. Non-interest expense increased by $746,000, or 19.10%, in the third quarter of 1996 as compared to the third quarter of 1995. This increase is primarily due to an increase in compensation costs and employee benefits and to additional expenses associated with being a publicly held Company. Nine Months Ended September 30, 1996 Earnings Summary The $2.8 million increase in net income for the nine months ended September 30, 1996 as compared to the similar period in 1995 primarily resulted from an increase of $5.2 million, or 32.67%, 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 the previously noted increase in deposit interest expense and increased interest expense on Federal Home Loan Bank ("FHLB FHLB Federal Home Loan Bank ") borrowed funds. Balance Sheet Summary At September 30, 1996, total assets were $770.1 million, an increase of $61.7 million from December December: see month. 31, 1995, and an increase of $3.5 million from June June: see month. 30, 1996. During the nine months ended September 30, 1996, mortgage loans increased by $74.2 million while securities available for sale declined by $3.0 million, and cash and federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold and overnight interest-earning deposits decreased by $10.4 million. This shift in assets reflects the Company's planned growth in the mortgage loan market. The increase in mortgage loans consisted primarily of a $50.4 million increase in the Bank's portfolio of 1-4 family residential mortgage loans and a $26.1 million increase in multi-family real estate mortgage loans. Non-performing assets declined by $1.4 million from $6.9 million at December 31, 1995 to $5.5 million at September 30, 1996. Total non-performing assets as a percentage of total assets has consistently declined quarterly from 0.97% at December 31, 1995 to 0.71% at September 30, 1996. By adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to its 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 loans, the Company has continued to strengthen its loan portfolio, evidenced by the increase in the Company's ratio of the 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 148.19% at September 30, 1996. Deposits grew by $13.0 million during the nine months ended September 30,1996 to $570.4 million at September 30, 1996. This increase is due primarily to a $19.0 million increase in certificate of deposit accounts, offset in part by a decline of $6.0 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 September 30, 1996, bearing a composite rate of 5.85% with 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 $6.4 million to $134.9 million at September 30, 1996 from $141.3 million at December 31, 1995. This decrease is due primarily to $6.1 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, $319,000 in dividends declared as noted below, and a $5.3 million decline, net of taxes, in the market value of securities available for sale. This decrease in equity was offset by $5.0 million in net income. In June 1996 the Company announced 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 716,350 shares of the Company's outstanding common stock. As of September 30, 1996, the Company had purchased 332,850 shares at a cost of $6.1 million leaving 383,5000 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. Program. Total shares outstanding at September 30, 1996 were 8,574,997. 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 exceeds 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 September 30, 1996, the core capital ratio was 12.52%, as compared to the minimum requirement of 4%, and the Company's risk-based ratio was 26.22%, as compared to the minimum requirement of 8%. In light of the Company's capital strength and earnings performance, the Board of Directors declared a $0.04 per share dividend on September 17, 1996, to common shareholders of record September 30, 1996, and payable on October October: see month. 15, 1996. Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. was reduced by $319,000 to reflect this cash dividend. At the same time, a Stockholder Rights Plan, designed to preserve long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. values and protect stockholders against unconstructive stock accumulations and other abusive Tending to deceive; practicing abuse; prone to ill-treat by coarse, insulting words or harmful acts. Using ill treatment; injurious, improper, hurtful, offensive, reproachful. tactics to acquire control of the Company was adopted. Under the plan, each stockholder of record at the close of business on September 30, 1996 will receive a dividend distribution of one right for each share of common stock held. The rights expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on September 30, 2006. "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, 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 (Unaudited)
September 30, 1996 December 31, 1995
ASSETS:
Cash and due from banks $ 8,678,327 $ 11,883,639
Federal funds sold and
overnight interest-earning
deposits 200,000 7,438,000
Securities available for sale:
Mortgage-backed securities 147,620,681 179,300,164
Other securities 230,783,851 202,147,039
Loans:
1-4 Family residential
mortgage loans 220,460,106 170,088,462
Multi-family mortgage loans 95,279,543 69,139,758
Commercial real estate
loans 42,920,978 45,214,727
Consumer loans 1,723,870 2,328,365
Less: Unearned loan fees (1,384,825) (1,334,991)
Allowance for loan losses (5,230,670) (5,309,859)
Net loans 353,769,002 280,126,462
Interest and dividends
receivable 6,670,889 5,879,501
Real estate owned, net 1,929,097 1,869,431
Bank premises and equipment, net 5,763,380 6,114,033
Other assets 14,686,846 13,626,246
Total assets $770,102,073 $708,384,515
LIABILITIES:
Due to depositors:
Non-interest bearing $ 9,464,607 $ 10,372,448
NOW and money market accounts 45,018,954 47,154,968
Savings accounts 212,657,918 215,577,540
Certificates of deposit 303,253,571 284,302,238
Mortgagors' escrow deposits 4,828,852 2,456,948
Borrowed funds 51,000,000 -
Other liabilities 8,959,146 7,190,167
Total liabilities 635,183,048 567,054,309
STOCKHOLDERS' EQUITY:
Preferred stock ($0.01 par value;
5,000,000 shares authorized) - -
Common stock ($0.01 par value;
20,000,000 shares authorized;
8,910,100 shares issued;
8,574,997 and 8,625,000 shares
outstanding at September 30, 1996
and December 31, 1995,
respectively) 89,101 86,250
Additional paid-in capital 101,154,756 96,514,628
Treasury stock (335,103 shares at
September 30, 1996) (6,166,010) -
Unearned compensation -
Employee Benefit Plan (7,656,792) (7,680,850)
Unearned compensation -
Restricted Stock Awards (4,258,950) -
Retained earnings 55,442,577 50,777,543
Net unrealized (loss) gain on
securities available for sale,
net of taxes (3,685,657) 1,632,635
Total stockholders'
equity 134,919,025 141,330,206
Total liabilities and
stockholders' equity $770,102,073 $708,384,515
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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
For the three months ended For the nine months ended
September 30, September 30,
1996 1995(1) 1996 1995(1)
Interest and dividend income:
Interest and
fees on loans $ 7,549,507 $ 6,095,647 $20,955,987 $18,336,834
Interest and
dividends
on securities:
Taxable interest 6,470,660 4,628,221 18,926,438 13,527,127
Tax-exempt interest 16,368 24,755 48,352 83,852
Dividends 76,249 109,610 272,542 335,879
Other interest
income 106,860 100,282 430,502 532,964
Total interest and
dividend income 14,219,644 10,958,515 40,633,821 32,816,656
Interest expense:
Deposits 6,038,044 5,877,136 17,957,999 16,346,907
Other interest
expense 747,143 17,220 1,381,415 419,206
Total interest
expense 6,785,187 5,894,356 19,339,414 16,766,113
Net interest
income 7,434,457 5,064,159 21,294,407 16,050,543
Provision for loan
losses 20,010 232,369 321,956 418,942
Net interest income
after provision for
loan losses 7,414,447 4,831,790 20,972,451 15,631,601
Non-interest income:
Other fee income 164,295 160,953 586,928 544,531
Net gain (loss) on
sale of securities (45,402) (251,219) 430,935 (395,858)
Amortization of
deferred gain from
sale of real estate - 1,836,504 - 2,784,422
New York State gains
tax refund - - - 386,912
Other income 190,011 197,987 578,869 892,337
Total non-interest
income 308,904 1,944,225 1,596,732 4,212,344
Non-interest expense:
Salaries and employee
benefits 2,218,539 1,890,379 6,352,054 5,478,281
Directors pension
expense 20,203 20,202 60,608 697,674
Occupancy and
equipment 524,944 523,968 1,551,036 1,506,840
Professional
services 522,066 340,652 1,587,395 1,113,230
Federal deposit
insurance premiums 500 60,038 1,500 775,304
Data processing 250,026 261,200 1,131,655 742,689
Depreciation and
amortization 253,657 195,595 730,030 547,216
Real estate owned
expenses 102,251 55,952 232,157 403,351
(Recovery) Provision
for deposits
at Nationar - - (449,392) 660,096
Conversion expenses - - - 2,221,832
Other operating 756,906 555,577 2,194,260 1,767,591
Total non-interest
expense 4,649,092 3,903,563 13,391,303 15,914,104
Income before
income taxes 3,074,259 2,872,452 9,177,880 3,929,841
Provision for
income taxes:
Federal 843,608 484,676 2,543,975 1,054,668
State and local 560,780 297,218 1,649,924 656,856
Total taxes 1,404,388 781,894 4,193,899 1,711,524
Net income $ 1,669,871 $ 2,090,558 $ 4,983,981 $ 2,218,317
Primary earnings
per share $0.20 n/a $0.62 n/a
(1) Reflects activity relating to Flushing Savings Bank, FSB only.
Flushing Financial Corporation acquired Flushing Savings Bank
concurrent with the Company's initial public offering which was
completed on November 21, 1995.
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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Unaudited)
At or For At or For
the three months ended the nine months ended
September 30, September 30,
1996 1995(1) 1996 1995(1)
Per Share Data:
Primary earnings per
share $0.20 n/a $0.62 n/a
Primary number of
average shares
outstanding for EPS
computation 8,180,777 n/a 8,074,946 n/a
Book value per
share (based on 8,574,997
shares outstanding) $15.73 n/a $15.73 n/a
Performance Ratios: (2)
Return on average
assets 0.87% 1.38% 0.89% 0.49%
Return on average equity 4.87 18.21 4.81 6.75
Interest rate spread
during period 3.35 3.48 3.28 3.61
Net interest margin 4.06 3.53 4.01 3.77
Non-interest expense to
average assets .. 2.42 2.57 2.39 3.51
Efficiency ratio 58.57 71.20 57.10 72.12
Average interest-earning
assets to average
interest-bearing
liabilities 1.19 x 1.01 x 1.20 x 1.04 x
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Selected Financial Ratios September 30, December 31,
and Other Data: 1996 1995(1)
Regulatory capital ratios
(for Flushing Savings Bank, FSB only):
Tangible capital (minimum requirement = 1.5%) 12.52% 14.85%
Core (minimum requirement = 4%) 12.52 14.85
Total risk-based capital
(minimum requirement = 8%) 26.22 30.48
Capital ratios:
Average equity to average assets 18.50% 8.70%
Equity to total assets 17.52 19.95
Asset quality ratios:
Non-performing loans to gross loans 0.98% 1.74%
Non-performing assets to total assets 0.71 0.97
Allowance for loan losses to gross loans 1.45 1.85
Allowance for loan losses to
total non-performing assets 95.82 77.52
Allowance for loan losses to
total non-performing loans 148.19 106.61
Full-service customer facilities 7 7
(1) Reflects activity relating to Flushing Savings Bank, FSB only.
Flushing Financial Corporation acquired Flushing Savings Bank
concurrent with the Company's initial public offering which was
completed on November 21, 1995.
(2) The unreleased shares held in the Company's Employee Benefit
Trust are not included in shares outstanding for purposes of
calculating earnings per share.
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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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