Business
Flushing Financial Corporation Reports Record Net Interest Income; Net Interest Margin Expansion Driven by Ability to Significantly Reduce Funding Costs
SECOND QUARTER 20201 HIGHLIGHTS GAAP diluted EPS was $0.63, compared to ($0.05) in 1Q20 and $0.37 in 2Q19Core diluted EPS was $0.36 compared to $0.19 in 1Q20
About this update from Flushing Financial Corporation
[{"type":"text","content":"SECOND QUARTER 20201 HIGHLIGHTS\n GAAP diluted EPS was $0.63, compared to ($0.05) in 1Q20 and $0.37 in 2Q19Core diluted EPS was $0.36 compared to $0.19 in 1Q20 and $0.42 in 2Q19Net interest margin was 2.87%, up 43bps QoQ and 42bps YoYCore net interest margin was 2.85%, up 36bps QoQ and 45bps YoYRecord GAAP net interest income of $48.7 million, up 19.3% QoQ and 21.8% YoYRecord Core net interest income of $49.1 million, up 14.4% QoQ and 20.2% YoYGAAP and core ROAE 13.1% and 7.4%, respectively, compared with (1.0)% and 3.8%, respectively in 1Q20GAAP and core ROAA were 1.0% and 0.6%, respectively, compared with (0.1)% and 0.3%, respectively in 1Q20Loan pipeline remains strong at $310.8 millionProvision for credit losses of $9.6 million, $0.25 after-tax per diluted common share, driven mainly by economic conditions arising from COVID-19 pandemicNet charge-offs were $1.0 million, compared to $1.1 million in 1Q20 UNIONDALE, N.Y., July 21, 2020 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC), the parent holding company for Flushing Bank (the “Bank”), today announced its financial results for the second quarter ended June 30, 2020. John R. Buran, President and Chief Executive Officer stated, “I want to thank our employees for their outstanding work during these unprecedented times. The health and welfare of our employees and customers remain our highest priority.” Mr. Buran continued, “We are pleased to announce our second quarter earnings totaled $18.3 million, or $0.63 per diluted common share. Our GAAP earnings for the quarter were positively impacted by two items. First, we executed on our strategic objective to manage our cost of funds and improve funding mix. We achieved record net interest income as a result of the Company’s quick response to the Fed decreasing interest rates in late March resulting in cost of funds decreasing 62 basis points from the previous quarter with additional opportunity to further reduce funding costs in the third quarter. Adding to the reduction of cost of funds in the second quarter, core deposits increased 7% while the net interest margin expanded 43 basis points from the previous quarter.” “The second item positively affecting our GAAP net earnings was the non-cash fair value adjustment on our junior subordinated debt of $10.3 million, or $0.27 per diluted common s...