8-K - FFIC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 27, 2022

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

(I.R.S. Employer Identification No.)

220 RXR Plaza , Uniondale , NY **** 11556

(Address of principal executive offices)

( 718 ) 961-5400

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure.

On January 27, 2022, Flushing Financial Corp. (the “Company”) made available to investors, and to post on this website, the earnings presentation for the 2021 fourth quarter earnings, the presentation attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Presentation dated January 28, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

us
	FLUSHING FINANCIAL CORPORATION


Date: January 27, 2022	By:	/s/ SUSAN K. CULLEN
		Susan K. Cullen
		Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

4Q21 Earnings Conference Call<br>January 28, 2022
Safe Harbor Statement<br>2<br>“Safe<br>Harbor”<br>Statement<br>under<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>:<br>Statements<br>in<br>this<br>Presentation<br>relating<br>to<br>plans,<br>strategies,<br>economic<br>performance<br>and<br>trends,<br>projections<br>of<br>results<br>of<br>specific<br>activities<br>or<br>investments<br>and<br>other<br>statements<br>that<br>are<br>not<br>descriptions<br>of<br>historical<br>facts<br>may<br>be<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>,<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>..<br>Forward<br>-<br>looking<br>information<br>is<br>inherently<br>subject<br>to<br>risks<br>and<br>uncertainties,<br>and<br>actual<br>results<br>could<br>differ<br>materially<br>from<br>those<br>currently<br>anticipated<br>due<br>to<br>a<br>number<br>of<br>factors,<br>which<br>include,<br>but<br>are<br>not<br>limited<br>to,<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2020<br>and<br>in<br>other<br>documents<br>filed<br>by<br>the<br>Company<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>from<br>time<br>to<br>time<br>..<br>Forward<br>-<br>looking<br>statements<br>may<br>be<br>identified<br>by<br>terms<br>such<br>as<br>“may”,<br>“will”,<br>“should”,<br>“could”,<br>“expects”,<br>“plans”,<br>“intends”,<br>“anticipates”,<br>“believes”,<br>“estimates”,<br>“predicts”,<br>“forecasts”,<br>“goals”,<br>“potential”<br>or<br>“continue”<br>or<br>similar<br>terms<br>or<br>the<br>negative<br>of<br>these<br>terms<br>..<br>Although<br>we<br>believe<br>that<br>the<br>expectations<br>reflected<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>are<br>reasonable,<br>we<br>cannot<br>guarantee<br>future<br>results,<br>levels<br>of<br>activity,<br>performance<br>or<br>achievements<br>..<br>The<br>Company<br>has<br>no<br>obligation<br>to<br>update<br>these<br>forward<br>-<br>looking<br>statements<br>..
---
3<br>4<br>1<br>2<br>Ensure appropriate risk<br>-<br>adjusted returns<br>for loans while optimizing costs of funds<br>Maintain strong historical loan growth<br><br>Average non<br>-<br>interest deposits increased 33.6% YoY<br><br>Record low cost of deposits at 0.25% in 4Q21; Loan<br>yields fell 2 bps<br>QoQ<br>; Core Loan yields down 4 bps<br><br>Net<br>interest income of $62.7MM increased 12.5% YoY;<br>Core net interest income of $61.1MM up 11.7% YoY<br><br>GAAP and Core NIM decreased 5 bps and 6 bps,<br>respectively,<br>QoQ<br><br>Loan closings up 49%<br>QoQ<br><br>Loans<br>, excluding PPP, grew 0.9%<br>QoQ<br><br>Loan pipeline strong at $429.3MM<br><br>~$<br>232.9MM of PPP forgiveness over life of program<br>representing 75% of PPP originations/acquisitions;<br>$53.4MM of forgiveness in 4Q21; $77.4MM PPP loans<br>remain<br>Enhance<br>core earnings power by<br>improving scalability and efficiency<br>Manage asset quality with consistently<br>disciplined underwriting<br><br>GAAP EPS $0.58 vs $0.11 YoY, up 427%<br><br>Core<br>1<br>EPS $0.67 vs $0.58 YoY, 16%<br><br>Continued digital adoption gains<br><br>Added 24 people from merged/merging institutions in<br>2021, 38% are revenue<br>producers<br><br>NPAs/Assets improved to 19 bps<br><br>Criticized and classified loans were 87 bps of loans<br><br>LLRs/NPLs of 249%<br><br>Average real estate LTV is <38%<br><br>$0.8MM provision for loan losses<br>Record 2021 GAAP and Core EPS;<br>4Q21 GAAP EPS $0.58 and Core EPS of $0.67<br>3<br>GAAP ROAA and ROAE 0.89% and 10.77%; Core<br>1<br>ROAA and ROAE 1.04% and 12.49% in 4Q21<br>1<br>See Reconciliation of GAAP Earnings and Core Earnings in Appendix
---
3<br>4<br>1<br>2<br>Improve<br>and Grow Funding Mix<br>Generate Appropriate<br>ly Priced Loan Growth<br><br>Non<br>-<br>interest bearing DDA growth<br><br>Increase core deposits<br><br>Manage overall deposit costs<br><br>Achieve<br>historical loan growth<br><br>Price loans in relation to acceptable risk<br><br>More emphasis on<br>floating<br>-<br>rate<br>loans<br>Manage Asset Quality<br>Invest in the<br>Future<br><br>Continue conservative underwriting<br><br>No change to risk profile<br><br>Manage through the cycle returns<br><br>Capitalize on merger disruption<br><br>Continue digital adoption gains<br><br>Appropriately manage operating expenses while<br>continuing franchise investments<br>2022 Strategic Objectives: Growth Through Investment<br>4<br>Appropriately Manage the Short Term While Investing for the Long Term
---
5<br>Well<br>-<br>positioned to Benefit from Industry Merger Disruption<br>•<br>8 bank mergers<br>have been announced or closed involving Long Island area Banks<br>2<br>•<br>Out of the $328B of total industry deposits<br>in Nassau, Queens, Kings, and Suffolk Counties, $60B or 18% involve a merger participant<br>3<br>•<br>93% of FFIC’s deposits<br>are in the Long Island market.<br>Flushing Financial (FFIC)<br>1<br>Elmhurst Branch (FFIC) to open in 1Q22<br>Webster Financial (WBS)/<br>Sterling Bancorp (STL)<br>Valley National Bancorp (VLY)/<br>The Westchester Bank/Bank Leumi USA<br>New York Community Bancorp (NYCB)/<br>Flagstar Bancorp (FBC)<br>Citizens Financial Group (CFG)/<br>HSBC/Investors Bancorp (ISBC)<br>M&T Bank (MTB)/<br>People’s United Financial (PBCT)<br>Dime Community Bancshares (DCOM)<br>Current Pro Forma U.S. Branches<br>1<br>22 FFIC branches shown, for illustrative purposes only, Port Jefferson Station, NY and Shirley, NY locations not pictured<br>2<br>Includes DCOM, MTB/PBCT, NYCB/FBC, CGF/ISBC/HSBC, VLY/The Westchester Bank/Bank Leumi USA, and WBS/STL<br>3<br>Based on most recent (June 30, 2021) S&P Global data<br>24 People<br>Recruited<br>(<br>9 Revenue<br>Producers)<br>from<br>Merged Institutions<br>in 2021
---
Loan Closings<br>Increase; Satisfactions Should Decline<br>6<br><br>Closings expected to increase<br>–<br>Pipeline remains strong although below the record<br>3Q21 level<br>–<br>8 bank mergers announced within footprint<br>–<br>Strong organic growth opportunity<br><br>Pipeline up 21% YoY<br>–<br>Mix is balanced with real estate and business<br>banking<br>–<br>Business Banking pipeline up 53% YoY<br><br>Satisfactions should decline<br>–<br>Loan<br>prepayments and satisfactions remained<br>elevated in 4Q21 due to refinance<br>activity<br>–<br>Excluding PPP, prepayment speeds increased over<br>50% in 2021 and nearly doubled in 4Q21<br>–<br>Rising rates should slow refinance<br>and satisfaction<br>volumes<br>over time<br>Loan Closings Up 49% QoQ<br>($MM)<br>$354.6<br>$375.8<br>$432.6<br>$530.7<br>$429.3<br>$316.0<br>$322.9<br>$324.4<br>$243.9<br>$362.7<br> $-<br> $100.0<br> $200.0<br> $300.0<br> $400.0<br> $500.0<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Loan Pipeline<br>Loan Closings
---
Digital Banking<br>Usage Continues to Increase<br>7<br>Technology Enhancements Remain a Priority<br>31%<br>Increase in Monthly Mobile<br>Active Users<br>YoY<br>~23,000<br>Active Online Banking Users<br>37%<br>YoY Growth<br>17%<br>Digital Banking<br>Enrollment<br>YoY Growth<br>Numerated<br>Improving<br>Small Business<br>Customer<br>Experience through<br>Automated Approval and<br>Origination<br>JAM FINTOP<br>Early Look at Emerging<br>Technology<br>Bitcoin<br>Transaction<br>Services<br>Launch Expected in 1Q22
---
Record Low Deposit Costs with Improving Mix<br>8<br>Deposits Rise While Costs Fall<br>Total Average Deposits<br>1<br>($MM)<br>1<br>Includes mortgage escrow deposits<br><br>Average non<br>-<br>interest bearing deposit up 34%<br>YoY<br><br>Non<br>-<br>interest bearing deposits are 15.1% of<br>average deposits<br>1<br>, up from 13.3% a year ago<br><br>4Q21 checking account openings up 35%<br>YoY and 13% versus<br>4Q19 (pre<br>-<br>pandemic)<br>$5,515<br>$6,285<br>$6,511<br>$6,408<br>$6,459<br>0.47%<br>0.39%<br>0.34%<br>0.29%<br>0.25%<br>0%<br>0%<br>0%<br>1%<br>1%<br>1%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Non-interest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>Deposit<br>Costs<br>Average Non<br>-<br>interest Deposits<br>($MM)<br>$731.2<br>$856.1<br>$923.2<br>$933.4<br>$976.8<br>-100<br>100<br>300<br>500<br>700<br>900<br>1100<br>1300<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21
---
$6,702<br>$6,746<br>$6,717<br>$6,627<br>$6,634<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Loans Increase in 4Q21 Excluding PPP<br>9<br>Core Loan Yields<br>4.06%<br>3.99%<br>4.06%<br>4.09%<br>4.05%<br>Loan Composition<br>Period End Loans<br>($MM)<br>Base Loan Yields<br>3.99%<br>3.93%<br>3.94%<br>3.96%<br>3.96%<br><br>Gross loans, excluding PPP, increased<br>3.7% annualized QoQ<br><br>PPP loans declined 41% QoQ to<br>$77.4MM<br><br>Loan pipeline totaled $429.3MM at<br>December 31, 2021, up 21.1% YoY,<br>but down 19.1% QoQ<br><br>Optimistic loan growth accelerates in<br>2022<br><br>Base loan yields were stable QoQ<br><br>Excluding PPP, rates on satisfactions<br>exceeded rates on loan closings by<br>40 bps, flat QoQ<br>See Appendix for definitions of Core and Base Loan Yields
---
Slight NIM Compression QoQ;<br>Net Interest Income Growth Expected Primarily From Asset Expansion<br>10<br>Base NIM FTE<br>2.97%<br>3.01%<br>3.04%<br>3.15%<br>3.13%<br>GAAP<br>NIM FTE<br>3.08%<br>3.18%<br>3.14%<br>3.34%<br>3.29%<br>$54.8<br>$58.7<br>$61.3<br>$62.2<br>$61.2<br>3.03%<br>3.06%<br>3.14%<br>3.27%<br>3.21%<br>4.06%<br>3.99%<br>4.06%<br>4.09%<br>4.05%<br>0.47%<br>0.39%<br>0.34%<br>0.29%<br>0.25%<br>-0.25%<br>0.75%<br>1.75%<br>2.75%<br>3.75%<br>4.75%<br>5.75%<br>6.75%<br>$10.0<br>$20.0<br>$30.0<br>$40.0<br>$50.0<br>$60.0<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Base NII FTE<br>Net Prepayment Penalties<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Deposit Costs<br>($MM)<br>See Appendix for definitions of Core and Base NII FTE and Core NIM, and Net Prepayment Penalties
---
The Balance Sheet Naturally Reprices Higher Over Time<br>11<br>Interest Rate Risk Profile<br>Static Balance Sheet For Base Case<br>Net Interest Income Projections<br><br>Using a static balance sheet and the year end 2021<br>yield curve, net interest income should<br>expand<br>1<br>–<br>Benefits of swap repricing<br>•<br>Repricing of $592MM of effective swaps at 1.95% with<br>$405 million of forward starting swaps at 0.77% largely<br>through the end of 2023<br>•<br>Swaps lock in funding costs in a rising rate environment<br>–<br>Repricing of funding costs<br>–<br>Higher rates on loan originations<br><br>Floating<br>-<br>rate<br>Initiatives help drive Net Interest Income<br>expansion<br>–<br>Immediately adding more<br>floating<br>-<br>rate<br>assets<br>•<br>Improves rate sensitivity by ~$3<br>-<br>12MM annually<br>–<br>Helps mitigate the negative impact of rising short<br>term rates<br>With No Change in Interest Rates, Net Interest Income Should Expand with a Static Balance<br>Sheet In The Early Years<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>Base Case- Net Interest Income<br>With Floating-rate Initiatives<br>1<br>Analysis<br>does not include benefits of net prepayment penalty income, fair values adjustments on hedges, or purchase accounting accreti<br>on
---
Preparing for a Rising Rate Environment<br>12<br>Interest Rate Risk Profile<br>Static Balance Sheet For Base Case<br>Net Interest Income Projections<br>Rates<br>Up 200 bps over 24 Months<br><br>Net Interest Income declines in a rising rate<br>environment<br>–<br>The duration of our assets is<br>greater than<br>liabilities<br>–<br>Approximately 25%<br>1<br>of the loan portfolio matures or<br>reprices within one year<br>–<br>A steeper yield curve is favorable<br>–<br>The timing and the pace of interest rate increases<br>matters<br>–<br>slower rate increases over longer periods<br>of time are more favorable than an immediate shock<br>of 100+ bps<br><br>Accelerating strategies to positively impact<br>Net Interest Income from rising rates:<br>–<br>Immediately adding more floating rate assets<br>–<br>Greater emphasis on growing floating rate loans<br>including C&I and Construction<br>–<br>Utilize the<br>back<br>-<br>to<br>-<br>back<br>loan swap program to add<br>shorter duration loans<br>–<br>Grow<br>non<br>-<br>interest<br>and core deposits while lagging<br>deposit repricing<br>Balance Sheet Growth<br>Expected<br>to Outweigh Potential NIM Compression In 2022<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>Rates Up 200 bps over 24 Months - Base Case<br>Rates Up 200 bps over 24 Months - With Floating-rate Initiative<br>1<br>Does not include approximately $400MM of floating rate swaps on fixed rate loans; if the swaps are included, the percentage o<br>f<br>loans that mature or reprice in one year totals 31%
---
Net Charge<br>-<br>offs Significantly Better Than the Industry<br>13<br>NCOs / Average Loans<br>0.06%<br>0.27%<br>1<br>-0.2%<br>0.3%<br>0.8%<br>1.3%<br>1.8%<br>2.3%<br>2.8%<br>3.3%<br>2001<br>2003<br>2005<br>2007<br>2009<br>2011<br>2013<br>2015<br>2017<br>2019<br>YTD 3Q21<br>FFIC<br>Industry<br><1 basis point of Net<br>Recoveries to Average<br>Loans in 4Q21; 5 bps<br>of Net Charge<br>-<br>offs in<br>2021<br>1<br>Note: Includes $11.2MM in taxi medallion write<br>-<br>offs in 2017 and $2.8MM in 2021 for FFIC<br>1<br>“Industry” includes FDIC insured institutions from “FDIC Statistics At A Glance” year to date through September 30, 2021<br>2<br>Based on appraised value at origination<br><br>Over two decades and multiple credit cycles, Flushing has a history of better than industry credit quality<br><br>Average LTVs on the Real Estate portfolio is <38%<br>2<br>–<br>Only $29.8MM of real estate loans (0.4% of gross loans) with an LTV of 75% or more<br>2
---
0.26%<br>0.26%<br>0.22%<br>0.25%<br>0.19%<br>0.15%<br>0.20%<br>0.25%<br>0.30%<br>0.35%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>NPAs / Assets<br>14<br>Continued Strong Credit Quality<br>Note: CECL accounting adopted January 1, 2020<br>NPAs / Assets<br>Criticized and Classified Loans / Gross Loans<br>Reserves / Gross Loans & Reserves / NPLs<br>ACL by Loan Segment (4Q21)<br>30.4% LTV on<br>4<br>Q21 NPAs<br>1.07%<br>0.94%<br>1.03%<br>1.04%<br>0.87%<br>0.75%<br>0.85%<br>0.95%<br>1.05%<br>1.15%<br>1.25%<br>1.35%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Criticized & Classified Loans / Gross Loans<br>$2,517<br>$1,776<br>$572<br>$268<br>$8<br>$60<br>$94<br>$1,339<br>0.33%<br>0.40%<br>0.31%<br>0.29%<br>0.00%<br>0.31%<br>1.29%<br>1.33%<br>-15.00%<br>-13.00%<br>-11.00%<br>-9.00%<br>-7.00%<br>-5.00%<br>-3.00%<br>-1.00%<br>1.00%<br>Multifamily<br>Residential<br>Commercial<br>Real Estate<br>1-4 Family -<br>Mixed Use<br>1-4 Family -<br>Residential<br>Co-operative<br>Apartments<br>Construction<br>Small<br>Business<br>Administration<br>Commercial<br>Business and<br>Other<br>Loan Balance<br>Reserves / Loans<br>214.3%<br>212.9%<br>242.6%<br>179.9%<br>248.7%<br>0.67%<br>0.67%<br>0.64%<br>0.55%<br>0.56%<br>0%<br>1%<br>1%<br>2%<br>2%<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>300%<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Reserves / NPLs<br>Reserves / Loans
---
TCE Ratio Expands Even With Share Repurchases;<br>~3.4% Dividend Yield<br>1<br>15<br>150,976 Share Repurchased in 4Q21;<br>56%<br>of 4Q21 Earnings Returned to Shareholders<br>11% Book Value Per Share Growth in 2021<br>11% Increase in Tangible Book Value Per Share YoY<br>1<br>Calculated using 1/21/22 closing price of $24.79<br>$19.45<br>$19.99<br>$20.51<br>$21.13<br>$21.61<br>7.52%<br>7.60%<br>7.80%<br>8.04%<br>8.22%<br>6.90%<br>7.10%<br>7.30%<br>7.50%<br>7.70%<br>7.90%<br>8.10%<br>8.30%<br>8.50%<br>8.70%<br> $15.00<br> $16.00<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>$20.11<br>$20.65<br>$21.16<br>$21.78<br>$22.26<br>9.88%<br>10.13%<br>10.24%<br>10.68%<br>10.86%<br>8.38%<br>8.44%<br>8.50%<br>8.83%<br>8.98%<br>0.00%<br>5.00%<br>10.00%<br>15.00%<br>20.00%<br>25.00%<br>30.00%<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br> $23.00<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio
---
16<br><br>Noninterest Income and Expense<br>–<br>4Q21<br>non<br>-<br>interest<br>income includes $2.0MM<br>($0.05/share, net of tax) of<br>dividend received on<br>retirement<br>plan<br>investments that is not<br>expected to<br>repeat<br>–<br>The elimination of overdraft, insufficient funds, and<br>transfer fees on consumer checking accounts is<br>expected to reduce<br>non<br>-<br>interest<br>income by $200,000<br>in 2022<br>–<br>Non<br>-<br>interest<br>expense includes a one<br>-<br>time $<br>4.3MM<br>($<br>0.11/share<br>, net of tax) increase in compensation<br>and benefits for all employees as a reward for<br>achieving record earnings in 2021 and employee<br>performance during the pandemic<br>–<br>Starting<br>point for 1Q22<br>core expense<br>is $<br>34.4MM<br>;<br>plus<br>high mid<br>-<br>single digit inflation and<br>$4.0<br>-<br>$4.5MM<br>of seasonal<br>expenses<br>–<br>2022 core expenses should follow normal seasonal<br>patterns<br><br>Net Interest Income/NIM<br>–<br>In 2022, net<br>interest income<br>driven primarily based<br>on balance sheet growth<br>–<br>Adding<br>floating<br>-<br>rate<br>assets<br>–<br>Core NIM impacted by timing and level of overall<br>loan growth and deployment of liquidity<br>–<br>2021<br>reported net interest margin contains<br>16<br>bps of<br>purchase accounting accretion, net prepayment<br>penalty income, and positive fair value markets on<br>hedges compared to mid<br>-<br>single digital basis<br>points<br>for the years 2020<br>and 2019<br>–<br>PPP<br>impact to 4Q21 NIM was 3 bps<br>–<br>Purchase<br>accounting accretion is expected to be<br>less than $1MM per quarter<br>–<br>Loan growth, excluding PPP, is expected to improve<br>in 2022<br>1Q22 and 2022 Outlook
---
17<br><br>Preparing for higher rates<br>–<br>Forward starting funding swaps start in 2022 and are<br>mostly fully phased in by the end of 2023<br>–<br>Adding<br>floating<br>-<br>rate<br>assets in the short and medium<br>term to improve rate risk profile<br>–<br>Net Interest Income growth driven from balance<br>sheet expansion which should more than offset<br>potential NIM compression<br><br>Low risk business model; 3.4%<br>1<br>dividend yield<br>–<br>Average LTV on real estate loans totals <38%<br>–<br>Historical strong credit metrics<br>–<br>No changes to underwriting process<br><br>Maintaining through<br>-<br>the<br>-<br>cycle goals of<br>ROAA ≥1% and ROAE ≥10%<br><br>Loan growth delayed in 4Q21 but poised to<br>increase in 2022<br>–<br>Pipeline has seasoned<br>–<br>Refinancing activity should decline with higher rates<br>–<br>Economy is normalizing<br><br>Benefiting from merger disruption<br>–<br>Added 24 people from March<br>-<br>December 2021 from<br>announced/recently closed mergers; 9 are revenue<br>producing<br>–<br>Expect greater benefit when deals close and<br>integration begins<br><br>We are investing in the franchise and our<br>employees<br>–<br>New services and product enhancements set to<br>launch in<br>2022<br>Key Messages<br>1<br>Calculated using 1/21/22 closing price of $24.79
---
Appendix<br>18
---
PPP: 75% of Lifetime Originations and Acquisitions Forgiven<br>19<br>Period<br>End<br>PPP Loans ($MM)<br>$151.9<br>$251.0<br>$197.3<br>$130.8<br>$77.4<br>Average PPP Loans<br>($MM)<br>PPP NIM Benefit/(Drag)<br>(0.03)%<br>(0.04)%<br>0.00%<br>0.02%<br>0.03%<br><br>Lifetime originations and acquisitions of<br>$310MM with a balance of $77.4MM at<br>4Q21 and remaining fees of $1.9MM<br><br>Forgiveness totaled $53.4MM in 4Q21,<br>$66.5MM in 3Q21, $69.2MM in 2Q21,<br>$24.1MM in 1Q21, and $19.7MM in 4Q21<br><br>$25.2MM of PPP loans are in the process<br>of forgiveness as of December 31, 2021<br><br>Forgiveness expected to largely be<br>complete in 1H22<br><br>SBA can take up to 90 days to approve<br>forgiveness<br><br>PPP benefited the NIM by 3 bps in 4Q21<br>$144<br>$209<br>$233<br>$165<br>$101<br>1.99%<br>1.98%<br>3.02%<br>4.06%<br>5.80%<br>0<br>50<br>100<br>150<br>200<br>250<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>PPP<br>Yield
---
$125<br>$321<br>$121<br>$25<br>$125<br>$230<br>$50<br>1.86%<br>2.09%<br>1.96%<br>0.47%<br>0.88%<br>0.70%<br>0.80%<br>2022<br>2023<br>2024<br>2025<br> Effective Swaps Maturities<br> Forward Swaps Start Date<br>Effective WA Rate<br> Forward WA Rate<br>$MM<br>20<br>Swaps Help Protect NIM from Rising Short<br>-<br>Term Rates<br><br>The balance sheet naturally improves over the next two years without any changes in<br>rates<br>–<br>$592MM of effective swaps at 1.95%; current drag on NIM; the majority mature by the end of 2023<br>–<br>$405MM of forward starting swaps at 0.77% that largely replace the current effective swaps
---
Reconciliation of GAAP Earnings and Core Earnings<br>21<br>Non<br>-<br>cash Fair Value Adjustments to GAAP Earnings<br>The<br>variance<br>in<br>GAAP<br>and<br>core<br>earnings<br>is<br>partly<br>driven<br>by<br>the<br>impact<br>of<br>non<br>-<br>cash<br>net<br>gains<br>and<br>losses<br>from<br>fair<br>value<br>adjustments<br>..<br>These<br>fair<br>value<br>adjustments<br>relate<br>primarily<br>to<br>swaps<br>designated<br>to<br>protect<br>against<br>rising<br>rates<br>and<br>borrowing<br>carried<br>at<br>fair<br>value<br>under<br>the<br>fair<br>value<br>option<br>..<br>As<br>the<br>swaps<br>get<br>closer<br>to<br>maturity,<br>the<br>volatility<br>in<br>fair<br>value<br>adjustments<br>will<br>dissipate<br>..<br>In<br>a<br>declining<br>interest<br>rate<br>environment,<br>the<br>movement<br>in<br>the<br>curve<br>exaggerates<br>our<br>mark<br>-<br>to<br>-<br>market<br>loss<br>position<br>..<br>In<br>a<br>rising<br>interest<br>rate<br>environment<br>or<br>a<br>steepening<br>of<br>the<br>yield<br>curve,<br>the<br>loss<br>position<br>would<br>experience<br>an<br>improvement<br>..<br>Core<br>Net<br>Income,<br>Core<br>Diluted<br>EPS,<br>Core<br>ROAE,<br>Core<br>ROAA,<br>Pre<br>-<br>provision,<br>Pre<br>-<br>tax<br>Net<br>Revenue,<br>Core<br>Net<br>Interest<br>Income<br>FTE,<br>Core<br>Net<br>Interest<br>Margin<br>FTE,<br>Base<br>Net<br>Interest<br>Income<br>FTE,<br>Base<br>Net<br>Interest<br>Margin<br>FTE,<br>Core<br>Interest<br>Income<br>and<br>Yield<br>on<br>Total<br>Loans,<br>Base<br>Interest<br>Income<br>and<br>Yield<br>on<br>Total<br>Loans,<br>Core<br>Non<br>-<br>interest<br>Income,<br>Core<br>Non<br>-<br>interest<br>Expense<br>and<br>Tangible<br>Book<br>Value<br>per<br>common<br>share<br>are<br>each<br>non<br>-<br>GAAP<br>measures<br>used<br>in<br>this<br>presentation<br>..<br>A<br>reconciliation<br>to<br>the<br>most<br>directly<br>comparable<br>GAAP<br>financial<br>measures<br>appears<br>below<br>in<br>tabular<br>form<br>..<br>The<br>Company<br>believes<br>that<br>these<br>measures<br>are<br>useful<br>for<br>both<br>investors<br>and<br>management<br>to<br>understand<br>the<br>effects<br>of<br>certain<br>interest<br>and<br>non<br>-<br>interest<br>items<br>and<br>provide<br>an<br>alternative<br>view<br>of<br>the<br>Company's<br>performance<br>over<br>time<br>and<br>in<br>comparison<br>to<br>the<br>Company's<br>competitors<br>..<br>These<br>measures<br>should<br>not<br>be<br>viewed<br>as<br>a<br>substitute<br>for<br>net<br>income<br>..<br>The<br>Company<br>believes<br>that<br>tangible<br>book<br>value<br>per<br>common<br>share<br>is<br>useful<br>for<br>both<br>investors<br>and<br>management<br>as<br>these<br>are<br>measures<br>commonly<br>used<br>by<br>financial<br>institutions,<br>regulators<br>and<br>investors<br>to<br>measure<br>the<br>capital<br>adequacy<br>of<br>financial<br>institutions<br>..<br>The<br>Company<br>believes<br>these<br>measures<br>facilitate<br>comparison<br>of<br>the<br>quality<br>and<br>composition<br>of<br>the<br>Company's<br>capital<br>over<br>time<br>and<br>in<br>comparison<br>to<br>its<br>competitors<br>..<br>These<br>measures<br>should<br>not<br>be<br>viewed<br>as<br>a<br>substitute<br>for<br>total<br>shareholders'<br>equity<br>..<br>These<br>non<br>-<br>GAAP<br>measures<br>have<br>inherent<br>limitations,<br>are<br>not<br>required<br>to<br>be<br>uniformly<br>applied<br>and<br>are<br>not<br>audited<br>..<br>They<br>should<br>not<br>be<br>considered<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>analysis<br>of<br>results<br>reported<br>under<br>GAAP<br>..<br>These<br>non<br>-<br>GAAP<br>measures<br>may<br>not<br>be<br>comparable<br>to<br>similarly<br>titled<br>measures<br>reported<br>by<br>other<br>companies<br>..
---
22<br>(Dollars in thousands,<br> <br>except per share data)<br>GAAP income before income taxes<br>$<br>22,826<br><br><br>$<br>34,812<br><br><br>$<br>25,416<br><br><br>$<br>26,224<br><br><br>$<br>3,878<br><br><br>$<br>109,278<br><br><br>$<br>45,182<br><br><br>Day 1, Provision for Credit Losses - Empire transaction<br>(Provision for credit losses)<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>1,818<br><br><br>—<br><br><br>1,818<br><br><br>Net (gain) loss from fair value adjustments (Non-interest<br>income (loss))<br> <br>5,140<br><br><br> <br>2,289<br><br><br> <br>6,548<br><br><br> <br>(982)<br><br><br> <br>4,129<br><br><br> <br>12,995<br><br><br> <br>2,142<br><br><br>Net (gain) loss on sale of securities (Non-interest income<br>(loss))<br> <br>—<br><br><br> <br>10<br><br><br> <br>(123)<br><br><br> <br>—<br><br><br> <br>610<br><br><br> <br>(113)<br><br><br> <br>701<br><br><br>Life insurance proceeds (Non-interest income (loss))<br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>(659)<br><br><br>Net gain on disposition of assets (Non-interest income (loss))<br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>(621)<br><br><br> <br>—<br><br><br> <br>(621)<br><br><br> <br>—<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges (Interest and fees on loans)<br> <br>(1,122)<br><br><br> <br>(194)<br><br><br> <br>664<br><br><br> <br>(1,427)<br><br><br> <br>(1,023)<br><br><br> <br>(2,079)<br><br><br>1,185<br><br><br>Prepayment penalty on borrowings (Non-interest expense)<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>7,834<br><br><br>—<br><br><br>7,834<br><br><br>Net amortization of purchase accounting adjustments<br>(Various)<br>(324)<br><br><br>(958)<br><br><br>(418)<br><br><br>(789)<br><br><br>80<br><br><br>(2,489)<br><br><br>80<br><br><br>Merger (benefit) expense (Various)<br> <br>(17)<br><br><br> <br>2,096<br><br><br> <br>(490)<br><br><br> <br>973<br><br><br> <br>5,349<br><br><br> <br>2,562<br><br><br> <br>6,894<br><br><br>Core income before taxes<br> <br>26,503<br><br><br> <br>38,055<br><br><br> <br>31,597<br><br><br> <br>23,378<br><br><br> <br>22,675<br><br><br> <br>119,533<br><br><br> <br>65,177<br><br><br>Provision for income taxes for core income<br> <br>5,535<br><br><br> <br>10,226<br><br><br> <br>8,603<br><br><br> <br>6,405<br><br><br> <br>4,891<br><br><br> <br>30,769<br><br><br> <br>15,428<br><br><br>Core net income<br>$<br>20,968<br><br><br>$<br>27,829<br><br><br>$<br>22,994<br><br><br>$<br>16,973<br><br><br>$<br>17,784<br><br><br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>GAAP diluted earnings per common share<br>$<br>0.58<br><br><br>$<br>0.81<br><br><br>$<br>0.61<br><br><br>$<br>0.60<br><br><br>$<br>0.11<br><br><br>$<br>2.59<br><br><br>$<br>1.18<br><br><br>Day 1, Provision for Credit Losses - Empire transaction, net of<br>tax<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>0.05<br><br><br>—<br><br><br>0.05<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br> <br>0.13<br><br><br> <br>0.05<br><br><br> <br>0.15<br><br><br> <br>(0.02)<br><br><br> <br>0.11<br><br><br> <br>0.31<br><br><br>0.06<br><br><br>Net loss on sale of securities, net of tax<br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>0.02<br><br><br> <br>—<br><br><br>0.02<br><br><br>Life insurance proceeds<br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br>(0.02)<br><br><br>Net gain on disposition of assets, net of tax<br> <br>—<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>(0.01)<br><br><br> <br>—<br><br><br> <br>(0.01)<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br> <br>(0.03)<br><br><br> <br>—<br><br><br> <br>0.02<br><br><br> <br>(0.03)<br><br><br> <br>(0.03)<br><br><br> <br>(0.05)<br><br><br>0.03<br><br><br>Prepayment penalty on borrowings, net of tax<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>0.20<br><br><br>—<br><br><br>0.20<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.01)<br><br><br>(0.02)<br><br><br>(0.01)<br><br><br>(0.02)<br><br><br>—<br><br><br>(0.06)<br><br><br>—<br><br><br>Merger (benefit) expense, net of tax<br> <br>—<br><br><br> <br>0.05<br><br><br> <br>(0.01)<br><br><br> <br>0.02<br><br><br> <br>0.14<br><br><br> <br>0.06<br><br><br>0.18<br><br><br>NYS tax change<br>—<br><br><br> <br>—<br><br><br> <br>(0.02)<br><br><br> <br>—<br><br><br> <br>—<br><br><br> <br>(0.02)<br><br><br>—<br><br><br>Core diluted earnings per common share<br>(1)<br>$<br>0.67<br><br><br>$<br>0.88<br><br><br>$<br>0.73<br><br><br>$<br>0.54<br><br><br>$<br>0.58<br><br><br>$<br>2.81<br><br><br>$<br>1.70<br><br><br>Core net income, as calculated above<br>$<br>20,968<br><br><br>$<br>27,829<br><br><br>$<br>22,994<br><br><br>$<br>16,973<br><br><br>$<br>17,784<br><br><br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>Average assets<br> <br>8,090,701<br><br><br> <br>8,072,918<br><br><br> <br>8,263,553<br><br><br> <br>8,147,714<br><br><br> <br>7,705,407<br><br><br> <br>8,143,372<br><br><br> <br>7,276,022<br><br><br>Average equity<br> <br>671,474<br><br><br> <br>659,288<br><br><br> <br>644,690<br><br><br> <br>619,647<br><br><br> <br>609,463<br><br><br> <br>648,946<br><br><br> <br>580,067<br><br><br>Core return on average assets<br>(2)<br> <br>1.04<br><br><br>% <br> <br>1.38<br><br><br>% <br> <br>1.11<br><br><br>% <br> <br>0.83<br><br><br>% <br> <br>0.92<br><br><br>% <br> <br>1.09<br><br><br>% <br> <br>0.68<br><br><br>%<br>Core return on average equity<br>(2)<br> <br>12.49<br><br><br>% <br> <br>16.88<br><br><br>% <br> <br>14.27<br><br><br>% <br> <br>10.96<br><br><br>% <br> <br>11.67<br><br><br>% <br> <br>13.68<br><br><br>% <br> <br>8.58<br><br><br>%<br>For the three months ended<br>For the year ended<br>December 31, <br>2021<br>2020<br>December 31, <br>June 30,<br>March 31,<br>2021<br>2020<br>December 31, <br>2021<br>December 31, <br>September 30,<br>2021<br>2021<br>1<br>Core diluted earnings per common share may not foot due to rounding<br>2<br>Ratios are calculated on an annualized basis<br>Reconciliation of GAAP to CORE Earnings
---
23<br> <br> <br> <br>(Dollars in thousands)<br> <br>GAAP net interest income<br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>61,039<br><br><br>$<br>60,892<br><br><br>$<br>55,732<br><br><br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br> <br>(1,122)<br><br><br> <br>(194)<br><br><br> <br>664<br><br><br> <br>(1,427)<br><br><br> <br>(1,023)<br><br><br> <br>(2,079)<br><br><br> <br>1,185<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(462)<br><br><br>(1,100)<br><br><br>(565)<br><br><br>(922)<br><br><br>(11)<br><br><br>(3,049)<br><br><br>(11)<br><br><br>Tax equivalent adjustment<br>113<br><br><br>113<br><br><br>113<br><br><br>111<br><br><br>114<br><br><br>450<br><br><br>508<br><br><br>Core net interest income FTE<br>$<br>61,203<br><br><br>$<br>62,183<br><br><br>$<br>61,251<br><br><br>$<br>58,654<br><br><br>$<br>54,812<br><br><br>$<br>243,291<br><br><br>$<br>196,881<br><br><br>Prepayment penalties received on loans and<br>securities, net of reversals and recoveries of<br>interest from non-accrual loans<br> <br>(1,497)<br><br><br> <br>(2,136)<br><br><br> <br>(2,046)<br><br><br> <br>(948)<br><br><br> <br>(1,093)<br><br><br> <br>(6,627)<br><br><br> <br>(4,576)<br><br><br>Base net interest income FTE<br>$<br>59,706<br><br><br>$<br>60,047<br><br><br>$<br>59,205<br><br><br>$<br>57,706<br><br><br>$<br>53,719<br><br><br>$<br>236,664<br><br><br>$<br>192,305<br><br><br>Total average interest-earning assets<br>(1)<br>$<br>7,634,601<br><br><br>$<br>7,616,332<br><br><br>$<br>7,799,176<br><br><br>$<br>7,676,833<br><br><br>$<br>7,245,147<br><br><br>$<br>7,681,441<br><br><br>$<br>6,863,219<br><br><br>Core net interest margin FTE<br> <br>3.21<br><br><br>% <br> <br>3.27<br><br><br>% <br> <br>3.14<br><br><br>% <br> <br>3.06<br><br><br>% <br> <br>3.03<br><br><br>% <br> <br>3.17<br><br><br>% <br> <br>2.87<br><br><br>% <br>Base net interest margin FTE<br> <br>3.13<br><br><br>% <br> <br>3.15<br><br><br>% <br> <br>3.04<br><br><br>% <br> <br>3.01<br><br><br>% <br> <br>2.97<br><br><br>% <br> <br>3.08<br><br><br>% <br> <br>2.80<br><br><br>% <br>GAAP interest income on total loans, net<br>$<br>68,113<br><br><br>$<br>69,198<br><br><br>$<br>67,999<br><br><br>$<br>69,021<br><br><br>$<br>66,120<br><br><br>$<br>274,331<br><br><br>$<br>248,153<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br> <br>(1,122)<br><br><br> <br>(194)<br><br><br> <br>664<br><br><br> <br>(1,427)<br><br><br> <br>(1,023)<br><br><br> <br>(2,079)<br><br><br> <br>1,185<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(535)<br><br><br>(1,126)<br><br><br>(624)<br><br><br>(728)<br><br><br>(356)<br><br><br>(3,013)<br><br><br>(356)<br><br><br>Core interest income on total loans, net<br>$<br>66,456<br><br><br>$<br>67,878<br><br><br>$<br>68,039<br><br><br>$<br>66,866<br><br><br>$<br>64,741<br><br><br>$<br>269,239<br><br><br>$<br>248,982<br><br><br>Prepayment penalties received on loans, net of<br>reversals and recoveries of interest from non-<br>accrual loans<br> <br>(1,497)<br><br><br> <br>(2,135)<br><br><br> <br>(2,046)<br><br><br> <br>(947)<br><br><br> <br>(1,093)<br><br><br> <br>(6,625)<br><br><br> <br>(4,501)<br><br><br>Base interest income on total loans, net<br>$<br>64,959<br><br><br>$<br>65,743<br><br><br>$<br>65,993<br><br><br>$<br>65,919<br><br><br>$<br>63,648<br><br><br>$<br>262,614<br><br><br>$<br>244,481<br><br><br>Average total loans, net<br>(1)<br>$<br>6,566,654<br><br><br>$<br>6,642,434<br><br><br>$<br>6,697,103<br><br><br>$<br>6,711,446<br><br><br>$<br>6,379,429<br><br><br>$<br>6,653,980<br><br><br>$<br>6,006,931<br><br><br>Core yield on total loans<br> <br>4.05<br><br><br>% <br> <br>4.09<br><br><br>% <br> <br>4.06<br><br><br>% <br> <br>3.99<br><br><br>% <br> <br>4.06<br><br><br>% <br> <br>4.05<br><br><br>% <br> <br>4.14<br><br><br>% <br>Base yield on total loans<br> <br>3.96<br><br><br>% <br> <br>3.96<br><br><br>% <br> <br>3.94<br><br><br>% <br> <br>3.93<br><br><br>% <br> <br>3.99<br><br><br>% <br> <br>3.95<br><br><br>% <br> <br>4.07<br><br><br>% <br>For the year ended<br>December 31, <br>December 31, <br>2021<br>2020<br>2021<br>2021<br>2021<br>2021<br>2020<br>For the three months ended<br>December 31, <br>September 30,<br>June 30,<br>March 31,<br>December 31, <br>1<br>Excludes purchase accounting average balances for all periods presented<br>Reconciliation of GAAP NII & NIM to CORE and Base NII & NIM
---
24<br>Reconciliation of GAAP Revenue and<br>Pre<br>-<br>provision Pre<br>-<br>tax Net Revenue<br> <br> <br> <br> <br> <br>(Dollars in thousands)<br> <br> <br> <br> <br> <br>GAAP Net interest income<br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>61,039<br><br><br>$<br>60,892<br><br><br>$<br>55,732<br><br><br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(1,122)<br><br><br>(194)<br><br><br>664<br><br><br>(1,427)<br><br><br>(1,023)<br><br><br>(2,079)<br><br><br>1,185<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(462)<br><br><br>(1,100)<br><br><br>(565)<br><br><br>(922)<br><br><br>(11)<br><br><br>(3,049)<br><br><br>(11)<br><br><br>Core Net interest income<br>$<br>61,090<br><br><br>$<br>62,070<br><br><br>$<br>61,138<br><br><br>$<br>58,543<br><br><br>$<br>54,698<br><br><br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>GAAP Non-interest income (loss)<br>$<br>(280)<br><br><br>$<br>866<br><br><br>$<br>(3,210)<br><br><br>$<br>6,311<br><br><br>$<br>(1,181)<br><br><br>$<br>3,687<br><br><br>$<br>11,043<br><br><br>Net (gain) loss from fair value adjustments<br>5,140<br><br><br>2,289<br><br><br>6,548<br><br><br>(982)<br><br><br>4,129<br><br><br>12,995<br><br><br>2,142<br><br><br>Net loss on sale of securities<br>—<br><br><br>10<br><br><br>(123)<br><br><br>—<br><br><br>610<br><br><br>(113)<br><br><br>701<br><br><br>Life insurance proceeds<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(659)<br><br><br>Net gain on sale of assets<br>—<br><br><br>—<br><br><br>—<br><br><br>(621)<br><br><br>—<br><br><br>(621)<br><br><br>—<br><br><br>Core Non-interest income<br>$<br>4,860<br><br><br>$<br>3,165<br><br><br>$<br>3,215<br><br><br>$<br>4,708<br><br><br>$<br>3,558<br><br><br>$<br>15,948<br><br><br>$<br>13,227<br><br><br>GAAP Non-interest expense<br>$<br>38,807<br><br><br>$<br>36,345<br><br><br>$<br>34,011<br><br><br>$<br>38,159<br><br><br>$<br>46,811<br><br><br>$<br>147,322<br><br><br>$<br>137,931<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(7,834)<br><br><br>—<br><br><br>(7,834)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(138)<br><br><br>(142)<br><br><br>(147)<br><br><br>(133)<br><br><br>(91)<br><br><br>(560)<br><br><br>(91)<br><br><br>Merger (benefit) expense<br>17<br><br><br>(2,096)<br><br><br>490<br><br><br>(973)<br><br><br>(5,349)<br><br><br>(2,562)<br><br><br>(6,894)<br><br><br>Core Non-interest expense<br>$<br>38,686<br><br><br>$<br>34,107<br><br><br>$<br>34,354<br><br><br>$<br>37,053<br><br><br>$<br>33,537<br><br><br>$<br>144,200<br><br><br>$<br>123,112<br><br><br>Net interest income<br>$<br>62,674<br><br><br>$<br>63,364<br><br><br>$<br>61,039<br><br><br>$<br>60,892<br><br><br>$<br>55,732<br><br><br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>Non-interest income (loss)<br>(280)<br><br><br>866<br><br><br>(3,210)<br><br><br>6,311<br><br><br>(1,181)<br><br><br>3,687<br><br><br>11,043<br><br><br>Non-interest expense<br>(38,807)<br><br><br>(36,345)<br><br><br>(34,011)<br><br><br>(38,159)<br><br><br>(46,811)<br><br><br>(147,322)<br><br><br>(137,931)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>23,587<br><br><br>$<br>27,885<br><br><br>$<br>23,818<br><br><br>$<br>29,044<br><br><br>$<br>7,740<br><br><br>$<br>104,334<br><br><br>$<br>68,311<br><br><br>Core:<br>Net interest income<br>$<br>61,090<br><br><br>$<br>62,070<br><br><br>$<br>61,138<br><br><br>$<br>58,543<br><br><br>$<br>54,698<br><br><br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>Non-interest income<br>4,860<br><br><br>3,165<br><br><br>3,215<br><br><br>4,708<br><br><br>3,558<br><br><br>15,948<br><br><br>13,227<br><br><br>Non-interest expense<br>(38,686)<br><br><br>(34,107)<br><br><br>(34,354)<br><br><br>(37,053)<br><br><br>(33,537)<br><br><br>(144,200)<br><br><br>(123,112)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>27,264<br><br><br>$<br>31,128<br><br><br>$<br>29,999<br><br><br>$<br>26,198<br><br><br>$<br>24,719<br><br><br>$<br>114,589<br><br><br>$<br>86,488<br><br><br>Efficiency Ratio<br>58.7<br><br><br>%<br>52.3<br><br><br>%<br>53.4<br><br><br>%<br>58.6<br><br><br>%<br>57.6<br><br><br>%<br>55.7<br><br><br>%<br>58.7<br><br><br>%<br>2020<br>2021<br>2021<br>2021<br>2021<br>2020<br>2021<br>For the three months ended<br>For the year ended<br>December 31, <br>September 30,<br>June 30,<br>March 31,<br>December 31, <br>December 31, <br>December 31,
---
25<br>Contact Details<br>Susan K. Cullen<br>SEVP, CFO & Treasurer<br>Phone: (718) 961<br>-<br>5400<br>Email: scullen@flushingbank.com<br>Al Savastano, CFA<br>Director of Investor Relations<br>Phone: (516) 820<br>-<br>1146<br>Email: asavastano@flushingbank.com
---