Flushing Financial earnings up 12.7% over last year

Flushing Financial Corp., the Lake Success company that owns Flushing Savings Bank, on Wednesday reported third quarter earnings of $9.1 million, 12.7 percent more than in the same period a year ago.

John Buran, president and chief executive, attributed the increase to a larger spread between the interest it pays on deposits and the interest it earns on loans, aided by the smallest increase in bad loans in the past two years.

The bank has been hampered somewhat "by a lengthy foreclosure process in our markets, which in some instances has resulted in loans remaining delinquent for as long as two years before we can obtain title to the underlying collateral," Buran said in a statement. "Once we have obtained title, we have been successful selling the properties, often within the same quarter."

The bank has hired staff to manage the delinquent loans it has, taking steps to help borrowers bring their loans current by reducing interest rates, extending the amortization period or collecting just interest for a short period of time.

Flushing Savings Bank has assets of $4.2 billion and has 15 branches in New York City and Nassau County.

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