LAKE SUCCESS, N.Y., April 15, 2008 (PRIME NEWSWIRE) -- Flushing Financial Corporation (the "Company") (Nasdaq:FFIC), the parent holding company for Flushing Savings Bank, FSB (the "Bank"), today announced its financial results for the three months ended March 31, 2008.
Net income for the first quarter ended March 31, 2008 was a record $7.2 million, an increase of $1.8 million, or 32.8%, from the $5.4 million earned in the first quarter of 2007, and an increase of $2.9 million, or 66.7%, from the $4.3 million earned in the fourth quarter of 2007. Diluted earnings per share for the first quarter was a record $0.36, an increase of $0.09, or 33.3%, from the $0.27 earned in the comparable quarter a year ago, and an increase of $0.14, or 63.6%, from the $0.22 earned in the fourth quarter of 2007. Net income for the first quarter of 2008 includes a final recovery of a portion of a loss sustained in 2002 on a WorldCom, Inc. senior note. This recovery, which was the result of class action litigation, was $1.4 million on an after-tax basis, and increased diluted earnings per share by $0.07 for the first quarter of 2008. This recovery was partially offset by the net after-tax loss recorded for the effect of SFAS No. 159 of $0.9 million, or $0.04 per diluted share, in the first quarter of 2008.
Core earnings, which exclude the effects of SFAS No. 159, the partial recovery of the loss on a WorldCom, Inc. senior note in the first quarter of 2008, and the other-than-temporary impairment charge in the fourth quarter of 2007, increased to $6.7 million, or $0.33 per diluted share, in the first quarter of 2008 from $6.0 million, or $0.30 per diluted share, in the fourth quarter of 2007, and $4.9 million, or $0.25 per diluted share, in the first quarter of 2007. The effect of changes in fair value recorded under SFAS No.159 reduced GAAP earnings by $0.04 per diluted share for the first quarter of 2008, increased GAAP earnings by $0.05 per diluted share in the fourth quarter of 2007, and increased GAAP earnings by $0.02 per diluted share in the first quarter of 2007. For a reconciliation of core earnings and core earnings per share to GAAP net income and GAAP earnings per share, please refer to the tables in the section titled Reconciliation of GAAP and Core Earnings.
John R. Buran, President and Chief Executive Officer, stated: "We are pleased to report record net income and diluted earnings per share for the first quarter. Core earnings per share increased for the fourth consecutive quarter to $0.33 in the first quarter of 2008 from $0.30 in the fourth quarter of 2007. Our strong operating performance was driven by net interest income that grew to a record level of $20.7 million for the quarter, as the net interest margin increased 27 basis points from the prior quarter to 2.58% for the first quarter of 2008. Credit quality remained strong with non-performing loans at 0.23% of total assets.
"The Federal Open Market Committee ("FOMC") lowered the overnight interest rate 200 basis points during the quarter to 2.25% as of March 31, 2008. These rate reductions, combined with a decrease in rate-based deposit competition in the New York Market, translated into a reduction in our funding costs, as we took advantage of several funding sources, mixing rate reductions with duration increases. As a result, we were able to reduce our cost of funds 29 basis points for the first quarter of 2008 from the immediately preceding quarter. At March 31, 2008, we have $529.9 million of certificates of deposit, at a weighted-average rate of 4.40%, that will mature or reprice before the end of the year.
"Our strategic initiative to build a more 'commercial-like' bank continues to be successful. Loan applications in process increased 34% during the quarter to $268.8 million at March 31, 2008 from $201.0 million at December 31, 2007, with more than half of the increase coming from our business banking initiative. Deposit gathering initiatives by our business bankers have shown success in cross selling deposit products to both new and long-standing customers, as business checking accounts increased $7.6 million, or 27%, during the first quarter of 2008.
"In summary, we remain pleased with the direction and pace of change in the organization as we move toward a more 'commercial-like' banking institution. We continue to expand and leverage our strengths in multicultural banking and mixed-use and multi-family lending, as we remain focused on delivering long-term value to our shareholders."
Earnings Summary - Three Months Ended March 31, 2008
For the three months ended March 31, 2008, net interest income was $20.7 million, an increase of $3.4 million, or 19.7%, from $17.3 million for the three months ended March 31, 2007. The increase in net interest income is attributed to an increase in the average balance of interest-earning assets of $500.4 million to $3,209.3 million, combined with an increase in the net interest spread of seven basis points to 2.41% for the quarter ended March 31, 2008 from 2.34% for the comparable period in 2007. The yield on interest-earning assets increased five basis points to 6.66% for the three months ended March 31, 2008 from 6.61% in the three months ended March 31, 2007. The cost of interest-bearing liabilities decreased two basis points to 4.25% for the three months ended March 31, 2008 from 4.27% for the comparable prior year period. The net interest margin increased two basis points to 2.58% for the three months ended March 31, 2008 from 2.56% for the three months ended March 31, 2007. Excluding prepayment penalty income, the net interest margin would have been 2.44% and 2.46% for the three month periods ended March 31, 2008 and 2007, respectively.
The increase in the yield of interest-earning assets is primarily due to an increase of $360.2 million in the average balance of the loan portfolio to $2,732.8 million. The yield on the mortgage loan portfolio increased eight basis points to 6.91% for the three months ended March 31, 2008 from 6.83% for the three months ended March 31, 2007. This increase is due to the average rate on mortgage loans originated during the past twelve months being above the average rate on both the loan portfolio and mortgage loans which were paid-in-full during the period. The yield on the mortgage loan portfolio, excluding prepayment penalty income, was unchanged at 6.73% for the three months ended March 31, 2008 from the three months ended December 31, 2007.
The decrease in the cost of interest-bearing liabilities is primarily attributed to the FOMC lowering the overnight interest rate to 2.25% as of March 31, 2008. Certificates of deposit and money market accounts decreased two basis points and 18 basis points, respectively, for the three months ended March 31, 2008 compared to the three months ended March 31, 2007. Savings accounts and NOW accounts increased 53 basis points and 146 basis points, respectively, for the three months ended March 31, 2008 compared to the three months ended March 31, 2007. This increase in the average cost of Savings and NOW accounts is due to the introduction and promotion of new products which, although carrying a higher rate than other products in these types of accounts, had a lower rate during the quarter ended March 31, 2008 than the average cost of deposits. This resulted in a decrease in the cost of deposits of two basis points to 3.98% for the three months ended March 31, 2008 compared to the three months ended March 31, 2007. The cost of borrowed funds also decreased 11 basis points to 4.74% for the three months ended March 31, 2008 compared to the three months ended March 31, 2007. The average balances of certificates of deposit and borrowed funds increased $49.7 million and $274.8 million, respectively, for the quarter ended March 31, 2008 compared to the prior year period. In addition, the combined average balances of lower-costing savings, money market and NOW accounts increased a total of $177.3 million for the quarter ended March 31, 2008 compared to the prior year period.
The net interest margin for the three months ended March 31, 2008 increased 27 basis points to 2.58% from 2.31% for the quarter ended December 31, 2007. The yield on interest-earning assets increased one basis point during the quarter, while the cost of interest-bearing liabilities decreased 29 basis points. Excluding prepayment penalty income, the net interest margin would have been 2.44% for the quarter ended March 31, 2008, an increase of 23 basis points from 2.21% for the quarter ended December 31, 2007.
A provision for loan losses of $0.3 million was provided for the three months ended March 31, 2008. The Company had not provided a provision for loan losses since 1999. The regular quarterly review of the allowance for loan losses resulted in management's conclusion that this provision is necessary to maintain the allowance for loan losses at a level that provides for losses inherent in the loan portfolio.
Non-interest income increased $0.3 million, or 8.8%, for the three months ended March 31, 2008 to $4.0 million, as compared to $3.7 million for the quarter ended March 31, 2007. Increases of $0.3 million in dividends received on Federal Home Loan Bank of New York ("FHLB-NY") stock and $0.1 million in income on BOLI due to the purchase of additional BOLI were partially offset by a $0.1 million decrease in gain on sale of loans. The three months ended March 31, 2008 includes income of $2.4 million representing a partial recovery of a loss sustained in 2002 on a WorldCom, Inc. senior note. This amount was received as a result of a class action litigation settlement. The changes in fair value of financial assets and financial liabilities carried at fair value under SFAS No. 159 was a loss of $1.6 million for the three months ended March 31, 2008, a decrease of $2.4 million from the $0.8 million gain recorded for the three months ended March 31, 2007.
Non-interest expense was $13.2 million for the three months ended March 31, 2008, an increase of $0.7 million, or 5.5%, from $12.5 million for the three months ended March 31, 2007. The increase from the comparable prior year period is primarily attributed to increases of: $0.3 million in employee salary and benefits, $0.2 million in professional services, and $0.2 million in data processing expense, each of which is primarily attributed to the growth of the Bank over the past twelve months. The efficiency ratio was 56.1% and 62.2% for the three month periods ended March 31, 2008 and 2007, respectively.
Net income for the three months ended March 31, 2008 was $7.2 million, an increase of $1.8 million, or 32.8%, as compared to $5.4 million for the three months ended March 31, 2007. Diluted earnings per share was $0.36 for the three months ended March 31, 2008, an increase of $0.09, or 33.3%, from $0.27 in the three months ended March 31, 2007.
Return on average equity was 12.3% for the three months ended March 31, 2008 compared to 10.0% for the three months ended March 31, 2007. Return on average assets was 0.8% for the three months ended March 31, 2008 and 2007.
Balance Sheet Summary
At March 31, 2008, total assets were $3,468.8 million, an increase of $114.2 million, or 3.4%, from $3,354.5 million at December 31, 2007. Total loans, net increased $111.0 million, or 4.1%, during the first quarter ended March 31, 2008 to $2,813.2 million from $2,702.1 million at December 31, 2007. At March 31, 2008, loan applications in process totaled $268.8 million, compared to $300.8 million at March 31, 2007 and $201.0 million at December 31, 2007.
The following table shows loan originations and purchases for the periods indicated.
For the three months
ended March 31,
------------------------------
(In thousands) 2008 2007
---------------------------------------------------------------------
Multi-family residential $ 47,482 $ 57,658
Commercial real estate 42,933 38,674
One-to-four family -
mixed-use property 34,618 43,554
One-to-four family -
residential 68,021 7,245
Construction 9,502 11,100
Commercial business and other loans 19,544 25,482
-------------- --------------
Total $ 222,100 $ 183,713
============== ==============
Loan purchases included in the table above totaled $52.9 million and $9.1 million for the quarters ended March 31, 2008 and 2007, respectively.
As the Bank continues to increase its loan portfolio, management continues to adhere to the Bank's strict underwriting standards. As a result, the Bank has been able to minimize charge-offs of losses from impaired loans and maintain asset quality. Non-performing assets were $7.9 million at March 31, 2008, compared to $5.9 million at December 31, 2007 and $3.1 million at March 31, 2007. The increase from December 31, 2007 is primarily attributed to three loans that are 90 days or more past due but still accruing interest. One of these loans, with a principal balance of $1.6 million, was sold in April with the Bank receiving all amounts, principal and interest, due under the terms of the loan. The other two loans are scheduled to either be paid-in-full or sold during the second quarter of 2008, with the Bank receiving all amounts, principal and interest, due under the terms of the loan. Non-accruing loans were $5.1 million at March 31, 2008, the same as at December 31, 2007. Total non-performing assets as a percentage of total assets was 0.23% at March 31, 2008, compared to 0.18% at December 31, 2007 and 0.11% as of March 31, 2007. The ratio of allowance for loan losses to total non-performing loans was 87% at March 31, 2008, compared to 113% at December 31, 2007 and 224% at March 31, 2007.
During the quarter ended March 31, 2008, mortgage-backed securities decreased $1.8 million to $360.9 million, while other securities decreased $3.8 million to $73.5 million. During the quarter ended March 31, 2008, there were purchases of $13.0 million of mortgage-backed securities. Other securities primarily consist of securities issued by government agencies and mutual or bond funds that invest in government and government agency securities.
Total liabilities were $3,233.3 million at March 31, 2008, an increase of $112.5 million, or 3.6%, from December 31, 2007. During the quarter ended March 31, 2008, due to depositors increased $46.7 million to $2,049.7 million, primarily as a result of increases of $38.2 million in certificates of deposit and core deposits of $8.5 million. The increase in certificates of deposit is attributed to an increase in brokered deposits of $96.6 million, partially offset by a decrease in retail certificates of deposit of $58.3 million. Borrowed funds increased $49.3 million to partially fund loan growth. In addition, mortgagors' escrow deposits increased $12.8 million during the quarter ended March 31, 2008.
Total stockholders' equity increased $1.8 million, or 0.8%, to $235.4 million at March 31, 2008 from $233.7 million at December 31, 2007. Net income of $7.2 million for the three months ended March 31, 2008 was partially offset by a net after-tax decrease of $3.7 million on the market value of securities available for sale, $2.6 million of cash dividends declared and paid during the three months ended March 31, 2008, and a $0.6 million after-tax charge as a result of the adoption of EITF Issue No. 06-4, which requires the accrual of the post-retirement cost of endorsement split-dollar life insurance arrangements with employees. The exercise of stock options increased stockholders' equity by $0.2 million, including the income tax benefit realized by the Company upon the exercise of the options. Book value per share was $11.03 at March 31, 2008, compared to $10.96 per share at December 31, 2007 and $10.41 per share at March 31, 2007.
The Company did not repurchase any shares during the quarter ended March 31, 2008 under its current stock repurchase program. At March 31, 2008, 362,050 shares remain to be repurchased under the current stock repurchase program. Through March 31, 2008, the Company had repurchased approximately 48% of the common shares issued in connection with the Company's initial public offering at a cost of $118.6 million.
Reconciliation of GAAP and Core Earnings
Although core earnings are not a measure of performance calculated in accordance with GAAP, the Company believes that its core earnings are an important indication of performance through ongoing operations. The Company believes that core earnings are useful to management and investors in evaluating its ongoing operating performance and in comparing its performance with other companies in the banking industry, particularly those that have not elected to report any financial assets and financial liabilities under SFAS No. 159. Core earnings should not be considered in isolation or as a substitute for GAAP earnings. The Company calculated core earnings by subtracting the partial recovery of a loss previously recorded on a WorldCom, Inc. senior note, adding back the other-than-temporary impairment charge, and subtracting/adding back the fair value gain/loss recorded under SFAS No.159. The Company adopted SFAS No. 159 effective January 1, 2007.
Three Months Ended
--------------------------------------------
March 31, March 31, December 31,
2008 2007 2007
------------- ------------- -------------
(In thousands, except per share data)
GAAP net income $ 7,151 $ 5,386 $ 4,291
Net (gain) loss
under SFAS No. 159,
net of tax 895 (449) (964)
Partial recovery of
WorldCom, Inc. loss,
net of tax (1,352) -- --
Other-than-temporary
impairment charge,
net of tax -- -- 2,632
------------- ------------- -------------
Core net income $ 6,694 $ 4,937 $ 5,959
============= ============= =============
GAAP diluted earnings
per share $ 0.36 $ 0.27 $ 0.22
Net (gain) loss under
SFAS No. 159, charge,
net of tax 0.04 (0.02) (0.05)
Partial recovery of
WorldCom, Inc. loss,
net of tax (0.07) -- --
Other-than-temporary
impairment charge,
net of tax -- -- 0.13
------------- ------------ -------------
Core diluted earnings
per share $ 0.33 $ 0.25 $ 0.30
============= ============ =============
About Flushing Financial Corporation
Flushing Financial Corporation is the parent holding company for Flushing Savings Bank, FSB, a federally chartered stock savings bank insured by the FDIC. The Bank serves consumers and businesses by offering a full complement of deposit, loan, and cash management services through its fourteen banking offices located in Queens, Brooklyn, Manhattan, and Nassau County. The Bank also operates an online banking division, iGObanking.com(r), which enables the Bank to expand outside of its current geographic footprint. In 2007, the Bank established Flushing Commercial Bank, a wholly-owned subsidiary, to provide banking services to public entities including counties, towns, villages, school districts, libraries, fire districts and the various courts throughout the metropolitan area.
Additional information on Flushing Financial Corporation may be obtained by visiting the Company's website at http://www.flushingsavings.com.
"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, 2007 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", "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.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands Except Per Share Data)
March 31, December 31,
2008 2007
----------- -----------
ASSETS (Unaudited)
------
Cash and due from banks $ 37,999 $ 36,148
Securities available for sale:
Mortgage-backed securities 360,918 362,729
Other securities 73,532 77,371
Loans:
Multi-family residential 968,166 964,455
Commercial real estate 657,099 625,843
One-to-four family - mixed-use property 708,650 686,921
One-to-four family - residential 219,728 161,666
Co-operative apartments 6,754 7,070
Construction 110,926 119,745
Small Business Administration 19,077 18,922
Taxi medallion 63,388 68,250
Commercial business and other 50,989 41,796
Net unamortized premiums and unearned
loan fees 15,234 14,083
Allowance for loan losses (6,847) (6,633)
----------- -----------
Net loans 2,813,164 2,702,118
Interest and dividends receivable 16,357 15,768
Bank premises and equipment, net 23,626 23,936
Federal Home Loan Bank of New York stock 44,780 42,669
Bank owned life insurance 52,813 52,260
Goodwill 16,127 16,127
Core deposit intangible 2,693 2,810
Other assets 26,744 22,583
----------- -----------
Total assets $ 3,468,753 $ 3,354,519
=========== ===========
LIABILITIES
-----------
Due to depositors:
Non-interest bearing $ 100,730 $ 69,299
Interest-bearing:
Certificate of deposit accounts 1,205,647 1,167,399
Savings accounts 365,579 354,746
Money market accounts 290,646 340,694
NOW accounts 87,060 70,817
----------- -----------
Total interest-bearing deposits 1,948,932 1,933,656
Mortgagors' escrow deposits 35,261 22,492
Borrowed funds 1,121,879 1,072,551
Other liabilities 26,539 22,867
----------- -----------
Total liabilities 3,233,341 3,120,865
----------- -----------
STOCKHOLDERS' EQUITY
--------------------
Preferred stock ($0.01 par value;
5,000,000 shares authorized; none issued) -- --
Common stock ($0.01 par value; 40,000,000
shares authorized; 21,343,311 shares and
21,321,564 shares issued and outstanding
at March 31, 2008 and December 31, 2007,
respectively 213 213
Additional paid-in capital 76,097 74,861
Treasury stock (none at March 31, 2008 and
December 31, 2007) -- --
Unearned compensation (1,906) (2,110)
Retained earnings 165,566 161,598
Accumulated other comprehensive loss, net
of taxes (4,558) (908)
----------- -----------
Total stockholders' equity 235,412 233,654
----------- -----------
Total liabilities and stockholders'
equity $ 3,468,753 $ 3,354,519
=========== ===========
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Data)
(Unaudited)
For the three months
ended March 31,
--------------------
2008 2007
-------- --------
Interest and dividend income
----------------------------
Interest and fees on loans $ 47,311 $ 40,664
Interest and dividends on securities:
Interest 4,955 3,926
Dividends 864 102
Other interest income 297 99
-------- --------
Total interest and dividend income 53,427 44,791
-------- --------
Interest expense
----------------
Deposits 19,632 17,419
Other interest expense 13,080 10,067
-------- --------
Total interest expense 32,712 27,486
-------- --------
Net interest income 20,715 17,305
Provision for loan losses 300 --
-------- --------
Net interest income after provision for loan
losses 20,415 17,305
-------- --------
Non-interest income
-------------------
Loan fee income 698 712
Banking services fee income 442 387
Net gain on sale of loans held for sale 31 121
Net gain on sale of loans 22 47
Net (loss) gain from fair value adjustments (1,602) 805
Federal Home Loan Bank of New York stock
dividends 881 575
Bank owned life insurance 554 429
Other income 2,946 575
-------- --------
Total non-interest income 3,972 3,651
-------- --------
Non-interest expense
--------------------
Salaries and employee benefits 6,454 6,147
Occupancy and equipment 1,636 1,625
Professional services 1,383 1,196
Data processing 1,045 844
Depreciation and amortization 594 593
Other operating expenses 2,105 2,118
-------- --------
Total non-interest expense 13,217 12,523
-------- --------
Income before income taxes 11,170 8,433
-------- --------
Provision for income taxes
--------------------------
Federal 3,164 2,647
State and local 855 400
-------- --------
Total taxes 4,019 3,047
-------- --------
Net income $ 7,151 $ 5,386
======== ========
Basic earnings per share $ 0.36 $ 0.28
Diluted earnings per share $ 0.36 $ 0.27
Dividends per share $ 0.13 $ 0.12
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands Except Share Data)
(Unaudited)
At or for the
three months
Ended March 31,
------------------------
2008 2007
----------- -----------
Per Share Data
--------------
Basic earnings per share $0.36 $0.28
Diluted earnings per share $0.36 $0.27
Average number of shares outstanding for:
Basic earnings per share computation 19,802,159 19,548,772
Diluted earnings per share computation 19,987,425 19,806,795
Book value per share (based on 21,343,311
and 21,113,435 shares outstanding at
March 31, 2008 and 2007, respectively) $11.03 $10.41
Average Balances
----------------
Total loans, net $ 2,732,792 $ 2,372,603
Total interest-earning assets 3,209,252 2,708,870
Total assets 3,398,079 2,870,679
Total due to depositors 1,942,197 1,715,197
Total interest-bearing liabilities 3,076,863 2,572,517
Stockholders' equity 233,081 214,736
Performance Ratios (1)
---------------------
Return on average assets 0.84% 0.75%
Return on average equity 12.27 10.03
Yield on average interest-earning assets 6.66 6.61
Cost of average interest-bearing liabilities 4.25 4.27
Interest rate spread during period 2.41 2.34
Net interest margin 2.58 2.56
Non-interest expense to average assets 1.56 1.75
Efficiency ratio 56.08 62.24
Average interest-earning assets to average
interest-bearing liabilities 1.04X 1.05X
(1) Ratios for the quarters ended March 31, 2008 and 2007 are
presented on an annualized basis.
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)
At or for the three At or for the year
months ended ended
March 31, 2008 December 31, 2007
------------------- -------------------
Selected Financial Ratios
and Other Data
-------------------------
Regulatory capital ratios
(for Flushing Savings Bank
only):
Tangible capital (minimum
requirement = 1.5%) 7.25% 7.27%
Leverage and core capital
(minimum requirement = 3%) 7.25 7.27
Total risk-based capital
(minimum requirement = 8%) 11.17 11.20
Capital ratios:
Average equity to average
assets 6.86% 7.19%
Equity to total assets 6.79 6.97
Asset quality:
Non-accrual loans $5,119 $5,140
Non-performing loans 7,900 5,893
Non-performing assets 7,900 5,893
Net charge-offs 86 424
Asset quality ratios:
Non-performing loans to
gross loans 0.28% 0.22%
Non-performing assets to
total assets 0.23 0.18
Allowance for loan losses
to gross loans 0.24 0.25
Allowance for loan losses
to non-performing assets 86.68 112.57
Allowance for loan losses
to non-performing loans 86.68 112.57
Full-service customer
facilities 14 14
FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in Thousands)
(Unaudited)
For the three months ended March 31,
--------------------------------------------------------
2008 2007
--------------------------- ---------------------------
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
--------------------------- ---------------------------
Assets
Interest-
earning
assets:
Mortgage
loans,
net (1) $2,600,676 $ 44,912 6.91% $2,300,636 $ 39,264 6.83%
Other
loans,
net (1) 132,116 2,399 7.26 71,967 1,400 7.78
--------------------------- ---------------------------
Total
loans,
net 2,732,792 47,311 6.92 2,372,603 40,664 6.86
--------------------------- ---------------------------
Mortgage-
backed
securities 359,491 4,628 5.15 285,329 3,473 4.87
Other
securities 77,195 1,191 6.17 42,585 555 5.21
--------------------------- ---------------------------
Total
securities 436,686 5,819 5.33 327,914 4,028 4.91
--------------------------- ---------------------------
Interest-
earning
deposits
and federal
funds sold 39,774 297 2.99 8,353 99 4.74
--------------------------- ---------------------------
Total
interest-
earning
assets 3,209,252 53,427 6.66 2,708,870 44,791 6.61
--------------------------- ---------------------------
Other
assets 188,827 161,809
---------- ----------
Total
assets $3,398,079 $2,870,679
---------- ----------
Liabilities
and Equity
Interest-
bearing
liabilities:
Deposits:
Savings
accounts $ 360,555 2,174 2.41 $ 274,265 1,291 1.88
NOW
accounts 75,145 420 2.24 48,074 94 0.78
Money
market
accounts 317,000 2,968 3.75 253,062 2,484 3.93
Certificate
of
deposit
accounts 1,189,497 14,054 4.73 1,139,796 13,528 4.75
--------------------------- ---------------------------
Total
due to
deposit-
ors 1,942,197 19,616 4.04 1,715,197 17,397 4.06
Mortgagors'
escrow
accounts 30,254 16 0.21 27,666 22 0.32
--------------------------- ---------------------------
Total
deposits 1,972,451 19,632 3.98 1,742,863 17,419 4.00
Borrowed
funds 1,104,412 13,080 4.74 829,654 10,067 4.85
--------------------------- ---------------------------
Total
interest-
bearing
liabil-
ities 3,076,863 32,712 4.25 2,572,517 27,486 4.27
---------------- ----------------
Non interest
-bearing
deposits 68,730 65,303
Other
liabilities 19,405 18,123
---------- ----------
Total
liabil-
ities 3,164,998 2,655,943
Equity 233,081 214,736
---------- ----------
Total
liabil-
ities and
equity $3,398,079 $2,870,679
---------- ----------
Net interest
income /net
interest
rate spread $ 20,715 2.41% $ 17,305 2.34%
---------------- ----------------
Net interest-
earning
assets / net
interest
margin $ 132,389 2.58% $ 136,353 2.56%
---------- ---- ---------- ----
Ratio of
interest-
earning
assets to
interest-
bearing
liabilities 1.04X 1.05X
---- ----
(1) Loan interest income includes loan fee income (which includes
net amortization of deferred fees and costs, late charges, and
prepayment penalties) of approximately $1.2 million and $0.7
million for the three-month periods ended March 31, 2008 and
2007, respectively.