Flushing Financial earnings rise

Listen to this article

Uniondale-based Flushing Financial’s first quarter earnings rose to $12.3 million from $9.6 million a year ago, but down from $14.9 million in the fourth quarter.

CEO John Buran said “positive momentum” from the end of the prior year “carried over to a strong start in 2017.”

He cited “record net interest income” of $43.4 million, up 5.5 percent year over year and 2.5 percent from the fourth quarter.

The bank ended the quarter with a loan pipeline of more than $300 million at an average rate of 4.15 percent as of March 31, 2017.

Buran said the firm continued enhancing “operational scalability and efficiency” by converting its fifth branch to what he called “the universal banker model,” relying more on technology, fewer staff and lower costs.

Total deposits increased 4 percent for the quarter and 9 percent from March 31, 2016 as core deposits increased 4 percent from both the prior quarter and a year ago.

Prepayment penalty income from loans and securities fell to $1.1 million from $1.6 million in the fourth quarter and $2.2 million a year ago.

Non-interest income rose $1.1 million year over year to $3.7 million, but down from $11.7 million in the fourth quarter, driven by a $14.2 million decrease in the net gain on the sale of buildings in the fourth quarter.

The bank finished the quarter with $5.0 billion in loans, up 11.6 percent from a year ago, as the firm continues to focus on multi-family, commercial real estate and commercial business loans.