Flushing Financial 2Q results mixed

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Flushing Financial Corp. of Lake Success said net income was up 11.5 percent in the second quarter from a year earlier on a larger loan portfolio and improved credit quality.

The parent of the 17-branch Flushing Bank said Tuesday net income for the three months ended June 30 was $9.6 million, an increase of $1 million from a year earlier. Earnings per share were 32 cents, up 4 cents from a year earlier.

But the company said net interest income, the difference between the revenue generated from a bank's assets and the expenses associated with liabilities, fell by 2.6 percent from a year earlier to $37.3 million.

Net interest margin, a measure of the difference between the interest a bank earns on its assets such as loans and the interest it pays out to depositors, decreased 19 basis points to 3.49 percent in the quarter from a year earlier.

Flushing said, however, that its provision for loan losses decreased by $1.5 million from a year earlier, to $3.5 million.

The bank's total assets were $4.6 billion at June 30, up 3.3 percent from Dec. 31.

On Monday, Great Neck-based Community National Bank reported an 18 percent year-over-year gain in its second-quarter earnings, citing higher net interest income from a larger loan portfolio and also increases in service fees, loan servicing income and gains on the sale of loans.

Net income for the three months ended June 20 was $794,000 or 12 cents a share, up from $672,000, or 10 cents a share, a year earlier.

Net interest income increased by 27 percent over a year earlier, to $6.5 million.

Net interest margin improved 24 basis points from a year earlier to 3.81 percent.

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The bank has 10 branches in Nassau, Suffolk, Queens and Manhattan and plans to open an 11th branch in Hewlett, next month.

It also plans to move into a new corporate headquarters, in Melville, next month.

The bank had assets of $666 million at the end of last year and $718 million at the end of the second quarter.

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