Flushing Financial Corporation (FFIC) has reported a 3.40 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $10.63 million, or $0.37 a share in the quarter, compared with $11.01 million, or $0.38 a share for the same period last year.      

Revenue during the quarter grew 5.29 percent to $43.57 million from $41.38 million in the previous year period. Non-interest income for the quarter rose 9.19 percent over the last year period to $1.85 million.

Net interest margin contracted 11 basis points to 2.94 percent in the quarter from 3.05 percent in the last year period. Efficiency ratio for the quarter deteriorated to 57.37 percent from 56.18 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.

John R. Buran, president and chief executive officer, stated: "We are pleased to report core earnings per diluted common share of $0.39 for the third quarter of 2016. "Our main focus continues to be growing multi-family, commercial real estate, and commercial business loans while maintaining our conservative underwriting standards. During the quarter ended September 30, 2016, loan originations for multi-family, commercial real estate and commercial business loans totaled 26%, 30% and 36%, respectively, of total loan production. We produced solid earnings this quarter through continued strong credit quality, a small uptick in the coupon rates on loan originations, and by reducing our expenses. We have begun to successfully execute on the strategy change to increase net interest income through increasing rates as opposed to increasing volume. The interest rates on our mortgage loan pipeline increased 11 basis points to 4.05% from 3.94% at June 30, 2016. This strategy shift positions the Company to reap the benefits of an increase in rates. Conversely, the cost of funds increased four basis points to 1.03% on a linked quarter basis, as rates on certain government deposits were raised."

Investments stood at $944.15 million as on Sep. 30, 2016, down 6.96 percent or $70.61 million from year-ago. Shareholders equity stood at $512.62 million as on Sep. 30, 2016, up 8.79 percent or $41.43 million from year-ago.

Return on average assets moved down 10 basis points to 0.71 percent in the quarter from 0.81 percent in the last year period. At the same time, return on average equity decreased 113 basis points to 8.36 percent in the quarter from 9.49 percent in the last year period.

Nonperforming assets moved down 21.17 percent or $7.08 million to $26.37 million on Sep. 30, 2016 from $33.46 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.44 percent in the quarter, down from 0.61 percent in the last year period.

Equity to assets ratio was 8.54 percent for the quarter, down from 8.56 percent for the previous year quarter. Average equity to average assets ratio was 8.36 percent for the quarter, down from 8.76 percent for the previous year quarter. Book value per share was $17.90 for the quarter, up 9.55 percent or $1.56 compared to $16.34 for the same period last year.