8-K

FLUSHING FINANCIAL CORP (FFIC)

8-K 2022-08-02 For: 2022-08-02
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Added on April 09, 2026

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): August 2, 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 August 2, 2022, Flushing Financial Corp. (the “Company”) made available to investors, and to post on its website, the presentation attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Presentation dated August 2, 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: August 2, 2022 By: /s/ SUSAN K. CULLEN
Susan K. Cullen
Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

Alliance Global Partners Investor Presentation<br>August 2,<br>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>2021<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>..
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3<br>Flushing Financial Snapshot (NASDAQ: FFIC)<br>Competitive Advantages<br>Balance Sheet<br>Assets<br>$<br>8.3B<br>Loans, net<br>$<br>6.7B<br>Deposits<br>$<br>6.4B<br>1<br>Equity<br>$<br>0.7B<br>Performance<br>GAAP/Core ROAA<br>1.22%/1.05%<br>2<br>GAAP/Core ROAE<br>15.00%/12.90%<br>2<br>Efficiency Ratio<br>52.3%<br>2<br>Tangible Book Value<br>$<br>21.71<br>Dividend Yield<br>4.0%<br>3<br>2Q22<br>Key Statistics<br>Footprint<br>Deposits<br>primarily from<br>25<br>branches<br>in multicultural neighborhoods and our online division,<br>consisting of iGObanking<br>®<br>and BankPurely<br>®<br>Strong Franchise and Diverse Business Mix<br>•<br>Diversified loan portfolio<br>with focus on commercial<br>business loans, multifamily mortgages, and commercial real<br>estate<br>•<br>Current/historical<br>strong credit<br>and capital positions<br>Track Record of Long<br>-<br>Term Outperformance<br>•<br>Only 9 of the 69 publicly traded banks in Flushing Bank’s<br>markets in 1995 remain;<br>FFIC has a total return of<br>1,010.6%<br>compared to<br>801.7%<br>for the peer median<br>4<br>and<br>936.2%<br>for the S&P 500 Total Return<br>4<br>•<br>FFIC has outperformed peers<br>5<br>since its IPO on 11/21/95 or<br>the IPO of its peers by<br>473<br>percentage points and the BKX<br>by<br>590<br>percentage points<br>Strategic Opportunities<br>•<br>Increase customer usage of<br>mobile and online banking<br>technology platform<br>•<br>Optimizing funding mix<br>through internet banks and Asian<br>initiatives<br>•<br>Proactively managing balance sheet to<br>enhance net<br>interest income<br>1<br>Includes mortgagors’ escrow deposits;<br>2<br>See Reconciliation of GAAP Revenue & Pre<br>-<br>Provision Pre<br>-<br>Tax Net Revenue for calculation;<br>3<br>Calculated<br>using<br>7/28/22<br>closing price of $<br>21.80<br>;<br>4<br>Performance calculated from 11/21/1995 to<br>6/30/22;<br>Banks include: CARV, CNOB, DCOM, FLIC, LBAI, NYCB, UNTY, and VLY;<br>5<br>Peers include BCBP, DCOM, FLIC<br>,<br>KRNY, LBAI, NFBK,<br>OCFC, PFS, PGC,<br>and SBNY
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4<br>Key Messages<br>Conservative Underwriting with History of Solid Value Creation<br>►<br>Leading Community Bank<br>in the Greater NYC Area<br>►<br>Well Diversified and Low Risk<br>Loan Portfolio<br>►<br>History of Sound Credit Quality<br>since IPO in 1995<br>►<br>Asian Banking<br>Niche<br>►<br>Beneficiary of a Steepening Yield Curve
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5<br>Well<br>-<br>positioned to Benefit from Industry Merger Disruption<br>•<br>10<br>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,<br>$87B<br>or<br>27%<br>involve a merger<br>participant<br>3<br>•<br>93% of FFIC’s deposits<br>are in the Long Island market, including Brooklyn and Queens<br>Flushing Financial (FFIC)<br>1<br>M&T Bank (MTB<br>)/ People’s<br>United Financial<br>(PBCT<br>)<br>(Closed April<br>1, 2022)<br>Webster<br>Financial (WBS<br>)/ Sterling<br>Bancorp<br>(STL<br>)<br>(Closed Feb<br>1, 2022)<br>Citizens<br>Financial<br>Group (CFG)/<br>HSBC<br>(Closed Feb<br>18, 2022)<br>/<br>Investors<br>Bancorp (ISBC<br>)<br>(<br>Closed April<br>6, 2022)<br>New<br>York Community Bancorp (NYCB)/<br>Flagstar Bancorp (FBC<br>)<br>(Pending)<br>Valley<br>National Bancorp (VLY)/<br>The<br>Westchester<br>Bank<br>(<br>Closed<br>Dec<br>1, 2021)<br>/<br>Bank<br>Leumi<br>USA<br>(Closed April<br>1, 2022)<br>Dime<br>Community Bancshares (DCOM)<br>(Closed Feb 1, 2021)<br>TD Bank (TD)/First Horizon (FHN)<br>(Pending)<br>OceanFirst (OCFC)/Partners (PTRS)<br>(Pending)<br>Current Pro Forma U.S. Branches<br>1<br>24<br>FFIC branches shown, for illustrative purposes<br>only; Shirley<br>, NY<br>location<br>not pictured<br>2<br>Includes<br>MTB/PBCT, WBS/STL, CFG/ISBC/HSBC, NYCB/FBC, VLY/The<br>Westchester Bank/Bank Leumi USA,<br>DCOM, TD/FHN, and OCFC/PTRS<br>3<br>Based on most recent (June 30, 2021) S&P Global data<br>42<br>people recruited<br>(<br>18<br>Revenue<br>Producers) from<br>Merged Institutions<br>Since March 31,<br>2021
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Record Loan Closings; Loan Pipeline Remains At Elevated Levels<br>6<br><br>Closings<br>accelerated in 2Q22<br>–<br>Closings up 63.0% YoY excluding PPP<br>–<br>Organic growth opportunity remains<br>–<br>Closings could slow with rising interest<br>rates<br><br>Pipeline<br>up 34.7% YoY<br>–<br>Second highest level after a record last<br>quarter<br>–<br>Composition mirrors the current loan mix<br><br>Loan pull through rates remain<br>strong<br>–<br>Pull through rates were 75.9% in 2Q22<br>compared to 76.7% in 1Q22 and 86.3%<br>in 2Q21<br>Loan<br>Pipeline Up 34.7% YoY<br>($MM)<br>$432.6<br>$530.7<br>$429.3<br>$663.7<br>$582.6<br>$324.4<br>$243.9<br>$362.7<br>$329.3<br>$503.8<br> $-<br> $100.0<br> $200.0<br> $300.0<br> $400.0<br> $500.0<br> $600.0<br> $700.0<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>Loan Pipeline<br>Loan Closings
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Digital Banking<br>Usage Continues to Increase<br>7<br>Technology Enhancements Remain a Priority<br>28%<br>Increase in Monthly Mobile<br>Active Users<br>YoY<br>~<br>25,000<br>Active Online Banking Users<br>27%<br>YoY Growth<br>14%<br>Digital Banking<br>Enrollment<br>YoY Growth<br>Numerated<br>Small<br>Business<br>Lending<br>Platform<br>$10.7MM of Commitments<br>in 1H22; Higher Yields vs<br>Portfolio<br>JAM FINTOP<br>Early Look at Emerging<br>Technology<br>~5,000<br>Zelle<br>®<br>Transactions<br>>$1.7MM<br>Zelle Dollar Transactions<br>in<br>June<br>2022
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8<br>Strong Asian Banking Market Focus<br>15%<br>of Total<br>Deposits<br>1<br>$<br>34B<br>Deposit Market<br>Potential<br>(~3% Market Share<br>1<br>)<br>6.9%<br>FFIC 5 Year Asian Market<br>CAGR vs<br>3.7%<br>2<br>for the<br>Comparable Asian<br>Markets<br>Asian Communities<br>–<br>Total Loans $792.5MM<br>and Deposits $959.8M<br>Multilingual Branch Staff<br>Serves Diverse Customer Base in NYC<br>Metro Area<br>Growth Aided by the<br>Asian Advisory Board<br>Sponsorships of Cultural Activities<br>Support New and Existing<br>Opportunities<br>1<br>Includes mortgagors’ escrow deposits<br>2<br>as<br>of June 30, 2021; Latest FDIC<br>Data; includes Elmhurst<br>Expanded into<br>Elmhurst<br>on<br>June<br>6, 2022
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Our Brand Promise: Rewarding Relationships<br>Nurturing Relationships<br>and Rewarding Customers, Employees, and Shareholders<br>9
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<br>Opened New Branch in Elmhurst Expanding Asian Market Footprint<br>–<br>Hired a team from merged institutions; growth has exceeded expectations; strong support from<br>community<br><br>Signed Lease for Hauppauge Branch<br>–<br>Expected to open by year end; Hauppauge is a business hub for Long Island<br><br>Issued Inaugural Environmental, Social, and Governance Report<br>–<br>See ESG under Investor Relations at<br>FlushingBank.com<br><br>Complete<br>Checking Account<br>Achieved “Bank On" National Account Standard<br>–<br>The goal of<br>Bank On<br>is to ensure that everyone has access to a safe and affordable bank account<br>–<br>Core features for certification include debit card capabilities, minimum account opening of $25 or less,<br>monthly maintenance fee of $5 or less if<br>not<br>waivable, no overdraft<br>or<br>non<br>-<br>sufficient fund fees, or no<br>account activation, closure, dormancy, inactivity or<br>low<br>balance<br>fees<br><br>Sponsors United<br>Way of Long Island SunFunders Challenge<br>–<br>Event was held to help raise funds to transform a 31,000 square foot building into a net<br>-<br>zero building<br><br>Flushing Bank Serves (Employee Driven)<br>–<br>Sponsored food drive for Island Harvest and collected over 500 pounds of food<br>–<br>Participated in Brooklyn’s Cinderella Project which provides prom attire to young men and women in<br>need and delivered over 100 items of clothing and accessories.<br>10<br>Key Events During 2Q22
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2.72%<br>2.49%<br>2.87%<br>3.17%<br>3.33%<br>4.38%<br>4.51%<br>4.14%<br>4.05%<br>4.15%<br>1.36%<br>1.76%<br>0.82%<br>0.32%<br>0.29%<br>$168.3<br>$164.2<br>$196.9<br>$243.3<br>$64.6<br>-1.00%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>$0.0<br>$50.0<br>$100.0<br>$150.0<br>$200.0<br>$250.0<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Core Deposit Yield<br>Loan Yields Rising; Deposits Betas Were Low in 2Q22<br>11<br>GAAP<br>NIM FTE<br>2.72%<br>2.47%<br>2.85<br>%<br>3.24%<br>3.35%<br>($MM)<br>See Appendix for definitions of Core<br>NII<br>FTE and Core<br>NIM<br>11 bps<br>QoQ<br>Increase<br>in 2Q22<br>7 bps<br>QoQ<br>Increase<br>in 2Q22
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12<br>Continued Growth in Noninterest Bearing Deposits<br>Average Deposits Composition<br>($MM)<br>$4,736<br>$5,013<br>$5,163<br>$6,416<br>$6,441<br>1.36%<br>1.76%<br>0.82%<br>0.32%<br>0.29%<br>0%<br>1%<br>1%<br>2%<br>2%<br>3%<br>3%<br>0<br>1000<br>2000<br>3000<br>4000<br>5000<br>6000<br>7000<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>Noninterest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>Deposit<br>Costs
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Limited Deposit Rate Increases in<br>2Q22<br>13<br>Weighted Average Deposit Beta of 9% in 1H22; Expect Beta to Accelerate<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>3Q17<br>4Q17<br>1Q18<br>2Q18<br>3Q18<br>4Q18<br>1Q19<br>2Q19<br>3Q19<br>4Q19<br>1Q20<br>2Q20<br>3Q20<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>2Q22<br>Average Fed Funds<br>Deposit Costs
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$5,536<br>$5,757<br>$6,702<br>$6,634<br>$6,752<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Total Gross Loans<br>14<br>Diversified Loan Mix; Yields<br>Increase<br>Loan Composition<br>Period End Loans ($MM)<br>Empire Bancorp acquisition added total loans of $685MM in 2020<br>See Appendix for definitions of Core<br>Loan<br>Yields<br>Core Loan Yields<br>4.38%<br>4.51%<br>4.14%<br>4.05%<br>4.15%
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Significant Loan Repricing Within a Quarter and Over Time<br>15<br><br>Floating rate loans<br>include<br>any loans<br>(including swaps) tied<br>to an index that reprices within 90 days<br><br>Loans to reprice ~120 bps higher over time assuming index values as of June 30,<br>2022<br><br>15% of<br>loans reprice within<br>a q<br>uarter<br>; while 5% and 15% of<br>loans<br>to<br>reprice<br>in 2H22 and 2023, respectively<br>Loan Repricing<br>($MM)<br>$986<br>$322<br>4.26%<br>4.32%<br>4.54%<br>5.96%<br> -<br> 200<br> 400<br> 600<br> 800<br> 1,000<br> 1,200<br>Floating<br>2H22<br>Loan Repricing<br>Current Rate<br>Repricing Rate<br>$986<br>$322<br>$982<br>$811<br>$766<br>4.23%<br>4.30%<br>4.03%<br>3.96%<br>4.07%<br>5.77%<br>5.77%<br>5.81%<br>5.67%<br>4.99%<br> -<br> 500<br> 1,000<br> 1,500<br> 2,000<br> 2,500<br>2023<br>2024<br>2025<br>2026<br>Beyond 2026<br>Adjustable Loan Repricing<br>Maturing Fixed Rate<br>Total Loan Repicing<br>Current Rate<br>Repricing Rate
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Well<br>-<br>Secured<br>Multifamily and CRE<br>Portfolios<br>16<br>Underwrite Real Estate Loans with a Cap Rate in Mid<br>-<br>5s and Stress Test Each Loan<br>Multifamily Geography<br>16%<br>31%<br>19%<br>17%<br>17%<br>Bronx<br>Kings<br>Manhattan<br>Queens<br>Other<br>$2.<br>5<br>B<br>Portfolio<br>•<br>Average loan size: $1.1MM<br>•<br>Average monthly rent of<br>$1,307 vs<br>$<br>2,974<br>1<br>for the market<br>•<br>Weighted average LTV<br>2<br>is<br><33% with no loans having an<br>LTV above 75<br>%<br>•<br>Weighted average DCR is ~1.8x<br>3<br>•<br>Borrowers typically do not sell properties, but refinance to buy more properties<br>•<br>Average loan size: $<br>2.4MM<br>•<br>Weighted average LTV<br>2<br>is<br>43%<br>with no loans having an LTV above 75%<br>•<br>Weighted average DCR is ~1.8x<br>3<br>•<br>~21%<br>of the portfolio outside of branch footprint<br>•<br>Require primary operating accounts<br>Non<br>-<br>Owner Occupied CRE Geography<br>8%<br>17%<br>17%<br>21%<br>8%<br>7%<br>9%<br>2%<br>11%<br>Bronx<br>Kings<br>Manhattan<br>Queens<br>Other NY<br>Nassau<br>Suffolk<br>NJ<br>CT/Other<br>$<br>1.9B<br>Portfolio<br>1<br>CoStar New York Multifamily Market Report,<br>7<br>-<br>12<br>-<br>2022<br>2<br>LTVs are based on value at origination.<br>3<br>Based on most recent Annual Loan Review
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17<br>Loans Secured by Real Estate Have an Average LTV of <38%<br>Multifamily<br><br>Primarily in market lending<br><br>Review net operating income and the collateral plus the<br>financial resources and income level of the borrower<br>(including experience in managing or owning similar<br>properties)<br><br>ARMs adjust each 5<br>-<br>year period with terms up to 30 years<br>and comprise<br>80%<br>of the portfolio; prepayment penalties are<br>reset for each 5<br>-<br>year period<br>Commercial Real Estate<br><br>Secured by in market office buildings, hotels/motels, small<br>business facilities, strip shopping centers, and warehouses<br><br>Similar underwriting standards as multifamily<br><br>ARMs adjust each 5<br>-<br>year period with terms up to 30 years<br>and comprise<br>82%<br>of the portfolio<br>Well Secured and Diversified Real Estate Portfolio<br>Data as of<br>June 30, 2022<br>58%<br>11%<br>7%<br>9%<br>4%<br>6%<br>3%<br>2%<br>Multifamily: 58%<br>General Commercial: 11%<br>CRE - Shopping Center: 7%<br>CRE - Strip Mall: 9%<br>CRE - Single Tenant: 4%<br>Office: 6%<br>Industrial: 3%<br>Commercial Special Use: 2%<br>$<br>4.4<br>B<br>Total Portfolio
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18<br>Well<br>-<br>Diversified<br>Commercial Business Portfolio<br>Commercial Business<br><br>Primarily in market lending<br><br>Annual sales up to $250MM<br><br>Lines of credit and term loans, including owner<br>occupied mortgages<br><br>Loans secured by business assets, including<br>account receivables, inventory, equipment, and real<br>estate<br><br>Personal guarantees are generally required<br><br>Originations are generally $100,000 to $10MM<br><br>Adjustable rate loans with adjustment periods of five<br>years for owner<br>-<br>occupied mortgages and for lines of<br>credit the adjustment period is generally monthly<br><br>Generally not subject to limitations on interest rate<br>increases but have interest rate floors<br>Average loan size of $1MM, excluding<br>PPP<br>Data as of<br>June 30, 2022<br>14%<br>11%<br>9%<br>8%<br>6%<br>6%<br>6%<br>6%<br>5%<br>5%<br>3%<br>3%<br>3%<br>3%<br>2%<br>2%<br>2%<br>1%<br>1%<br>1%<br>1%<br>1%<br>Other: 14%<br>Wholesalers: 11%<br>Trucking/ Vehicle Transport: 9%<br>Hotels: 8%<br>Construction / Contractors: 6%<br>Real Estate: 6%<br>Manufacturer: 6%<br>Financing Company: 6%<br>Medical Professionals: 5%<br>Professional Services (Excluding Medial): 5%<br>Apparel: 3%<br>Automobile Related: 3%<br>Civic and Social Organizations: 3%<br>Theaters: 3%<br>Media: 2%<br>Schools/ Daycare Centers: 2%<br>Restaurants: 2%<br>Food Services: 1%<br>Fitness and Recreational Sports Centers: 1%<br>Airlines: 1%<br>Electrical Equipment: 1%<br>Healthcare: 1%<br>$<br>1.5B<br>Total Portfolio<br>Real Estate<br>Collateral<br>$708<br>MM
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<br>Over two decades and multiple credit cycles, Flushing Financial has a history of better than industry credit<br>quality<br><br>Average LTVs on the Real Estate portfolio is <38%<br>4<br>–<br>Only $21.7MM of real estate loans (0.3% of gross loans) with an LTV of 75% or more<br>4<br>Net Charge<br>-<br>offs Significantly Better Than the<br>Industry; Strong DSR<br>19<br>NCOs / Average Loans<br>0.01%<br>0.25%<br>3<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>2021<br>FFIC<br>Industry<br>3 basis points<br>of<br>Net<br>Recoveries to<br>Average Loans in<br>2<br>Q22<br>1H22<br>Weighted average debt service ratios (DSR) for<br>Multifamily and NOO CRE portfolios at 1.8x<br>1<br>-<br>200 bps shock increase in rates produces a weighted average DSR<br>of >1.25x<br>2<br>-<br>10% increase in operating expense yields a weighted average DSR<br>of >1.50x<br>2<br>-<br>200 bps shock increase in rates and 10% increase in operating<br>expenses results in a weighted average DSR >1.15<br>2<br>3<br>1<br>Based on most recent Annual Loan Review<br>2<br>Based on a sample of loan comprising 89% of loans adjusting from (2022<br>-<br>2024) with no increase in<br>rents or total<br>income<br>3<br>“Industry” includes FDIC insured institutions from “FDIC Statistics At A Glance”<br>through March 31, 2022<br>4<br>Based on appraised value at origination
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20<br>Continued Strong Credit Quality<br>NPAs / Assets<br>Criticized and Classified Loans / Gross Loans<br>Reserves / Gross Loans & Reserves / NPLs<br>ACL by Loan Segment<br>(2Q22)<br>0.96%<br>0.66%<br>1.07%<br>0.87%<br>0.85%<br>0.50%<br>0.60%<br>0.70%<br>0.80%<br>0.90%<br>1.00%<br>1.10%<br>1.20%<br>1.30%<br>2018<br>2019<br>2020<br>2021<br>2Q22<br> Criticized & Classified Loans / Gross Loans<br>128.9%<br>164.1%<br>214.3%<br>248.7%<br>141.1%<br>0.38%<br>0.38%<br>0.67%<br>0.56%<br>0.58%<br>0%<br>0%<br>0%<br>1%<br>1%<br>1%<br>1%<br>1%<br>2%<br>2%<br>2%<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>300%<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>ACLs / NPLs<br>ACLs / Loans<br>$2,532<br>$1,865<br>$561<br>$243<br>$8<br>$72<br>$41<br>$1,431<br>0.37%<br>0.45%<br>0.35%<br>0.36%<br>0.00%<br>0.42%<br>5.22%<br>1.14%<br>-40.00%<br>-35.00%<br>-30.00%<br>-25.00%<br>-20.00%<br>-15.00%<br>-10.00%<br>-5.00%<br>0.00%<br>5.00%<br>10.00%<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>ACLs / Loans<br>0.24%<br>0.19%<br>0.26%<br>0.19%<br>0.59%<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>NPAs / Assets<br>50.7% LTV on 2Q22 NPAs
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Higher Rates Negatively Impact TCE by 19 bps;<br>~4.0%<br>Dividend Yield<br>1<br>21<br>71%<br>of<br>1H22<br>Earnings<br>Returned; 45% in 2021<br>5.7%<br>Book Value Per Share Growth YoY<br>5.9% YoY Increase in Tangible Book Value Per Share<br>$19.64<br>$20.59<br>$20.11<br>$22.26<br>$22.38<br>10.98%<br>10.95%<br>9.88%<br>10.86%<br>10.52%<br>8.74%<br>8.73%<br>8.38%<br>8.98%<br>8.91%<br>0.00%<br>5.00%<br>10.00%<br>15.00%<br>20.00%<br>25.00%<br>30.00%<br>35.00%<br>40.00%<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> $23.00<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio<br>1<br>Calculated using<br>7/28/22<br>closing price of $<br>21.80<br>$19.07<br>$20.02<br>$19.45<br>$21.61<br>$21.71<br>7.83%<br>8.05%<br>7.52%<br>8.22%<br>7.82%<br>5.00%<br>6.00%<br>7.00%<br>8.00%<br>9.00%<br>10.00%<br>11.00%<br>12.00%<br>13.00%<br>14.00%<br>15.00%<br> $10.00<br> $12.00<br> $14.00<br> $16.00<br> $18.00<br> $20.00<br> $22.00<br>2018<br>2019<br>2020<br>2021<br>2Q22<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>Empire<br>Closed
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22<br><br>Benefiting from merger disruption<br>–<br>Since March 31, 2021, added 42 people from<br>announced/recently closed mergers; 18 are revenue<br>producing<br>–<br>Record loan closings in 2Q22<br>–<br>Record levels of DDA balances in 2Q22<br><br>Significant capital return; 4.0%<br>1<br>dividend<br>yield<br>–<br>Repurchased 387,689 shares in 2Q22 at an average<br>price of $22.01<br>–<br>1.1 million shares remain under current<br>authorizations<br>–<br>Balancing additional share repurchases with 8%<br>TCE target<br><br>Maintaining through<br>-<br>the<br>-<br>cycle goals of<br>ROAA ≥1% and ROAE ≥10%<br>–<br>On a core basis, ROAA of<br>1.05%<br>and ROAE of<br>12.90%<br>in<br>2Q22<br><br>Loan<br>growth<br>expect to remain in current range<br>–<br>Pipeline<br>remains strong; second highest level in history<br>–<br>Record quarterly closings<br>–<br>Expect prepayment speeds to decline over time<br>–<br>Expect higher rates to impact closings<br><br>Managed rate increases well in<br>1H22<br>; will<br>become<br>more challenging with<br>future Fed actions<br>–<br>Overall deposit<br>beta was<br>only 9% in 2Q22 but expect more<br>pressure with each additional Fed<br>move<br>–<br>Loan repricing to provide<br>partial mitigation<br><br>Long history of superior credit quality<br>–<br>Loan losses consistently below industry levels<br>–<br>Average real estate LTVs <38%<br>–<br>Weighted average Debt Service Coverage Ratio of 1.8x for<br>multifamily and NOO CRE<br>Key Messages<br>1<br>Calculated using<br>7/28/22<br>closing price of $<br>21.80
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Appendix
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24<br>Experienced Executive Leadership Team<br>Executive Compensation and Insider Stock Ownership<br>(6.1%<br>2<br>) Aligned with Shareholder Interests<br>John Buran<br>President<br>and CEO<br>Maria Grasso<br>SEVP, COO,<br>Corporate Secretary<br>Susan Cullen<br>SEVP, CFO,<br>Treasurer<br>Francis Korzekwinski<br>SEVP, Chief of<br>Real Estate<br>Michael Bingold<br>SEVP, Chief Retail and Client<br>Development Officer<br>Douglas McClintock<br>SEVP, General Counsel<br>FFIC: 21 years<br>Industry:<br>45<br>years<br>16<br>years<br>36<br>years<br>7<br>years<br>32<br>years<br>29<br>years<br>33<br>years<br>9<br>years<br>39<br>years<br><1 year<br>46 years<br>Allen Brewer<br>SEVP, Chief Information Officer<br>Tom Buonaiuto<br>SEVP, Chief of Staff, Deposit<br>Channel Executive<br>Vincent Giovinco<br>EVP, Commercial Real Estate<br>Lending<br>Jeoung Jin<br>EVP, Residential<br>and Mixed Use<br>Theresa Kelly<br>EVP, Business<br>Banking<br>Patricia Mezeul<br>EVP, Director of<br>Government Banking<br>14<br>years<br>48<br>years<br>14 years<br>1<br>30 years<br>2 years<br>24<br>years<br>24<br>years<br>29<br>years<br>16<br>years<br>38<br>years<br>14 years<br>42<br>years<br>1<br>Previously President and COO of Empire Bancorp and Empire National Bank from its inception in February 2008 until the sale to<br>Fl<br>ushing Financial in October 2020<br>2<br>Directors and executive officers as of<br>June 30, 2022
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25<br>26 Year Track Record of Steady Growth<br>Core EPS<br>($)<br>Dividends per Share<br>($)<br>Tangible Book Value per Share<br>($)<br>Assets<br>($B)<br>Total Gross Loans<br>($B)<br>Total Deposits<br>($B)<br>1<br>$<br>-<br>$0.84<br>$0.88<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1H22<br>$<br>-<br>$2.81<br>$1.30<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1H22<br>$0.6<br>$6.4<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>2Q22<br>$0.3<br>$6.8<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>2Q22<br>$0.7<br>$8.3<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>2Q22<br>10% CAGR<br>9%<br>CAGR<br>13% CAGR<br>10% CAGR<br>2<br>15% CAGR<br>2<br>$4.86<br>$21.71<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>2Q22<br>6% CAGR<br>Note: Acquisition of Empire Bancorp in<br>2020<br>(loans and deposits acquired of $685MM and $854MM, respectively; assets acquired of $982MM)<br>1<br>Includes mortgagors’ escrow deposits<br>2<br>Calculated from<br>1996<br>-<br>2021, 1H22 annualized
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26<br>Environmental, Social, and Governance<br>Environmental<br>–<br>reduction of carbon footprint and<br>assessing climate change through<br>underwriting<br>Social<br>-<br>Building rewarding relationships with<br>communities, customers, and<br>employees<br>See more details in our ESG Report under Investor Relations at FlushingBank.com<br>Governance<br>-<br>Corporate governance is a<br>strength<br>through oversight and risk management
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Reconciliation of GAAP Earnings and Core Earnings<br>27<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>Core<br>Interest<br>Income<br>and<br>Yield<br>on<br>Total<br>Loans,<br>Core<br>Noninterest<br>Income,<br>Core<br>Noninterest<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>noninterest<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>..
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28<br>Reconciliation of GAAP Earnings and Core Earnings<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><br>(Dollars In thousands, except per share data)<br>GAAP income (loss) before income taxes<br>$<br>109,278<br><br><br>$<br>45,182<br><br><br>$<br>53,331<br><br><br>$<br>65,485<br><br><br>$<br>66,134<br><br><br>$<br>59,611<br><br><br>$<br>51,640<br><br><br>Day 1, Provision for Credit Losses - Empire transaction<br>—<br><br><br>1,818<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments<br><br>12,995<br><br><br><br>2,142<br><br><br><br>5,353<br><br><br><br>4,122<br><br><br><br>3,465<br><br><br><br>(724)<br><br><br><br>5,566<br><br><br>Net (gain) loss on sale of securities<br><br>(113)<br><br><br><br>701<br><br><br><br>15<br><br><br><br>1,920<br><br><br><br>186<br><br><br><br>—<br><br><br><br>(123)<br><br><br>Life insurance proceeds<br><br>—<br><br><br><br>(659)<br><br><br><br>(462)<br><br><br><br>(2,998)<br><br><br><br>(1,405)<br><br><br><br>(1,536)<br><br><br><br>—<br><br><br>Net gain on sale or disposition of assets<br><br>(621)<br><br><br><br>—<br><br><br><br>(770)<br><br><br><br>(1,141)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(621)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>—<br><br><br><br>189<br><br><br><br>(763)<br><br><br>Accelerated employee benefits upon Officer's death<br><br>—<br><br><br><br>—<br><br><br><br>455<br><br><br><br>149<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>7,834<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments<br>(2,489)<br><br><br>80<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(1,161)<br><br><br>(1,207)<br><br><br>Merger expense<br><br>2,562<br><br><br><br>6,894<br><br><br><br>1,590<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>483<br><br><br>Core income before taxes<br><br>119,533<br><br><br><br>65,177<br><br><br><br>61,190<br><br><br><br>67,537<br><br><br><br>68,380<br><br><br><br>56,379<br><br><br><br>54,975<br><br><br>Provision for income taxes for core income<br><br>30,769<br><br><br><br>15,428<br><br><br><br>13,957<br><br><br><br>11,960<br><br><br><br>22,613<br><br><br><br>15,892<br><br><br><br>15,008<br><br><br>Core net income<br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>$<br>47,233<br><br><br>$<br>55,577<br><br><br>$<br>45,767<br><br><br>$<br>40,487<br><br><br>$<br>39,967<br><br><br>GAAP diluted earnings (loss) per common share<br>$<br>2.59<br><br><br>$<br>1.18<br><br><br>$<br>1.44<br><br><br>$<br>1.92<br><br><br>$<br>1.41<br><br><br>$<br>1.39<br><br><br>$<br>1.21<br><br><br>Day 1, Provision for Credit Losses - Empire transaction, net of<br>tax<br>—<br><br><br>0.05<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br><br>0.31<br><br><br><br>0.06<br><br><br><br>0.14<br><br><br><br>0.10<br><br><br><br>0.07<br><br><br><br>(0.02)<br><br><br><br>0.13<br><br><br>Net (gain) loss on sale of securities, net of tax<br><br>—<br><br><br><br>0.02<br><br><br><br>—<br><br><br><br>0.05<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Life insurance proceeds<br><br>—<br><br><br><br>(0.02)<br><br><br><br>(0.02)<br><br><br><br>(0.10)<br><br><br><br>(0.05)<br><br><br><br>(0.05)<br><br><br><br>—<br><br><br>Net gain on sale or disposition of assets, net of tax<br><br>(0.01)<br><br><br><br>—<br><br><br><br>(0.02)<br><br><br><br>(0.03)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.01)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br><br>(0.05)<br><br><br><br>0.03<br><br><br><br>0.05<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.02)<br><br><br>Accelerated employee benefits upon Officer's death, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>0.01<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Federal tax reform 2017<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>0.13<br><br><br>—<br><br><br>—<br><br><br>Prepayment penalty on borrowings, net of tax<br>—<br><br><br>0.20<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.06)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(0.03)<br><br><br>(0.03)<br><br><br>Merger expense, net of tax<br><br>0.06<br><br><br><br>0.18<br><br><br><br>0.04<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>0.01<br><br><br>NYS tax change<br><br>(0.02)<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>Core diluted earnings per common share<br>(1)<br>$<br>2.81<br><br><br>$<br>1.70<br><br><br>$<br>1.65<br><br><br>$<br>1.94<br><br><br>$<br>1.57<br><br><br>$<br>1.30<br><br><br>$<br>1.26<br><br><br>Core net income, as calculated above<br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>$<br>47,233<br><br><br>$<br>55,577<br><br><br>$<br>45,767<br><br><br>$<br>40,487<br><br><br>$<br>39,967<br><br><br>Average assets<br><br>8,143,372<br><br><br><br>7,276,022<br><br><br><br>6,947,881<br><br><br><br>6,504,598<br><br><br><br>6,217,746<br><br><br><br>8,131,065<br><br><br><br>8,205,954<br><br><br>Average equity<br><br>648,946<br><br><br><br>580,067<br><br><br><br>561,289<br><br><br><br>534,735<br><br><br><br>530,300<br><br><br><br>670,219<br><br><br><br>632,238<br><br><br>Core return on average assets<br>(2)<br><br>1.09<br><br><br>%<br><br>0.68<br><br><br>%<br><br>0.68<br><br><br>%<br><br>0.85<br><br><br>%<br><br>0.74<br><br><br>%<br><br>1.00<br><br><br>%<br><br>0.97<br><br><br>%<br>Core return on average equity<br>(2)<br><br>13.68<br><br><br>%<br><br>8.58<br><br><br>%<br><br>8.42<br><br><br>%<br><br>10.39<br><br><br>%<br><br>8.63<br><br><br>%<br><br>12.08<br><br><br>%<br><br>12.64<br><br><br>%<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>2017<br>June 30,<br>2022<br>June 30,<br>2021<br>December 31,<br>Six Months Ended
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29<br>Reconciliation of GAAP Revenue & Pre<br>-<br>Provision Pre<br>-<br>Tax Net Revenue<br>Efficiency ratio, a non<br>-<br>GAAP measure, was calculated by dividing noninterest expenses (excluding merger expenses, OREO expense,<br>prepayment penalty on borrowings, the net gain/loss from<br>the sale of OREO and net amortization of purchase accounting adjustment) by the total of net interest income (excluding net g<br>ain<br>s and loses from fair value adjustments on qualifying hedges and<br>net amortization of purchase accounting adjustments) and noninterest income (excluding life insurance proceeds, net gains and<br>lo<br>sses from the sale or disposition of securities, assets and fair<br>value adjustments)<br><br>(Dollars In thousands)<br><br><br><br><br><br><br><br><br>GAAP Net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>$<br>128,209<br><br><br>$<br>121,931<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(2,079)<br><br><br>1,185<br><br><br>1,678<br><br><br>—<br><br><br>—<br><br><br>189<br><br><br>(763)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(3,049)<br><br><br>(11)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(1,425)<br><br><br>(1,487)<br><br><br>Core Net interest income<br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>$<br>163,618<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>$<br>126,973<br><br><br>$<br>119,681<br><br><br>GAAP Noninterest income<br>$<br>3,687<br><br><br>$<br>11,043<br><br><br>$<br>9,471<br><br><br>$<br>10,337<br><br><br>$<br>10,362<br><br><br>$<br>8,666<br><br><br>$<br>3,101<br><br><br>Net (gain) loss from fair value adjustments<br>12,995<br><br><br>2,142<br><br><br>5,353<br><br><br>4,122<br><br><br>3,465<br><br><br>(724)<br><br><br>5,566<br><br><br>Net (gain) loss on sale of securities<br>(113)<br><br><br>701<br><br><br>15<br><br><br>1,920<br><br><br>186<br><br><br>—<br><br><br>(123)<br><br><br>Life insurance proceeds<br>—<br><br><br>(659)<br><br><br>(462)<br><br><br>(2,998)<br><br><br>(1,405)<br><br><br>(1,536)<br><br><br>—<br><br><br>Net gain on disposition of assets<br>(621)<br><br><br>—<br><br><br>(770)<br><br><br>(1,141)<br><br><br>—<br><br><br>—<br><br><br>(621)<br><br><br>Core Noninterest income<br>$<br>15,948<br><br><br>$<br>13,227<br><br><br>$<br>13,607<br><br><br>$<br>12,240<br><br><br>$<br>12,608<br><br><br>$<br>6,406<br><br><br>$<br>7,923<br><br><br>GAAP Noninterest expense<br>$<br>147,322<br><br><br>$<br>137,931<br><br><br>$<br>115,269<br><br><br>$<br>111,683<br><br><br>$<br>107,474<br><br><br>$<br>74,316<br><br><br>$<br>72,170<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>(7,834)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Accelerated employee benefits upon<br>Officer's death<br>—<br><br><br>—<br><br><br>(455)<br><br><br>(149)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(560)<br><br><br>(91)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(264)<br><br><br>(280)<br><br><br>Merger expense<br>(2,562)<br><br><br>(6,894)<br><br><br>(1,590)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(483)<br><br><br>Core Noninterest expense<br>$<br>144,200<br><br><br>$<br>123,112<br><br><br>$<br>113,224<br><br><br>$<br>111,534<br><br><br>$<br>107,474<br><br><br>$<br>74,052<br><br><br>$<br>71,407<br><br><br>GAAP:<br>Net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>$<br>128,209<br><br><br>$<br>121,931<br><br><br>Noninterest income<br>3,687<br><br><br>11,043<br><br><br>9,471<br><br><br>10,337<br><br><br>10,362<br><br><br>8,666<br><br><br>3,101<br><br><br>Noninterest expense<br>(147,322)<br><br><br>(137,931)<br><br><br>(115,269)<br><br><br>(111,683)<br><br><br>(107,474)<br><br><br>(74,316)<br><br><br>(72,170)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>104,334<br><br><br>$<br>68,311<br><br><br>$<br>56,142<br><br><br>$<br>66,060<br><br><br>$<br>75,995<br><br><br>$<br>62,559<br><br><br>$<br>52,862<br><br><br>Core:<br>Net interest income<br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>$<br>163,618<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>$<br>126,973<br><br><br>$<br>119,681<br><br><br>Noninterest income<br>15,948<br><br><br>13,227<br><br><br>13,607<br><br><br>12,240<br><br><br>12,608<br><br><br>6,406<br><br><br>7,923<br><br><br>Noninterest expense<br>(144,200)<br><br><br>(123,112)<br><br><br>(113,224)<br><br><br>(111,534)<br><br><br>(107,474)<br><br><br>(74,052)<br><br><br>(71,407)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>114,589<br><br><br>$<br>86,488<br><br><br>$<br>64,001<br><br><br>$<br>68,112<br><br><br>$<br>78,241<br><br><br>$<br>59,327<br><br><br>$<br>56,197<br><br><br>Efficiency Ratio<br>55.7<br><br><br>%<br>58.7<br><br><br>%<br>63.9<br><br><br>%<br>62.1<br><br><br>%<br>57.9<br><br><br>%<br>55.5<br><br><br>%<br>56.0<br><br><br>%<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>December 31,<br>2017<br>Six Months Ended<br>June 30,<br>June 30,<br>2022<br>2021
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30<br>Reconciliation of GAAP NII & NIM to CORE<br>NII<br>& NIM<br>1<br>Excludes purchase accounting average balances for the<br>years ended 2021 and 2020 and for the six months ended June 30, 2022 and 2021<br>(Dollars In thousands)<br>GAAP net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>$<br>128,209<br><br><br>$<br>121,931<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>—<br><br><br><br>189<br><br><br><br>(763)<br><br><br>Net amortization of purchase accounting<br>adjustments<br><br>(3,049)<br><br><br><br>(11)<br><br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(1,425)<br><br><br>(1,487)<br><br><br>Tax equivalent adjustment<br>450<br><br><br>508<br><br><br>542<br><br><br>895<br><br><br>—<br><br><br>255<br><br><br>224<br><br><br>Core net interest income FTE<br>$<br>243,291<br><br><br>$<br>196,881<br><br><br>$<br>164,160<br><br><br>$<br>168,301<br><br><br>$<br>173,107<br><br><br>$<br>127,228<br><br><br>$<br>119,905<br><br><br>Total average interest-earning assets<br>(1)<br>$<br>7,681,441<br><br><br>$<br>6,863,219<br><br><br>$<br>6,582,473<br><br><br>$<br>6,194,248<br><br><br>$<br>5,916,073<br><br><br>$<br>7,662,315<br><br><br>$<br>7,738,344<br><br><br>Core net interest margin FTE<br><br>3.17<br><br><br>%<br><br>2.87<br><br><br>%<br><br>2.49<br><br><br>%<br><br>2.72<br><br><br>%<br><br>2.93<br><br><br>%<br><br>3.32<br><br><br>%<br><br>3.10<br><br><br>%<br>GAAP interest income on total loans, net<br>$<br>274,331<br><br><br>$<br>248,153<br><br><br>$<br>251,744<br><br><br>$<br>232,719<br><br><br>$<br>209,283<br><br><br>$<br>136,708<br><br><br>$<br>137,020<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>—<br><br><br><br>189<br><br><br><br>(763)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(3,013)<br><br><br>(356)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(1,474)<br><br><br>(1,352)<br><br><br>Core interest income on total loans, net<br>$<br>269,239<br><br><br>$<br>248,982<br><br><br>$<br>253,422<br><br><br>$<br>232,719<br><br><br>$<br>209,283<br><br><br>$<br>135,423<br><br><br>$<br>134,905<br><br><br>Average total loans, net<br>(1)<br>$<br>6,653,980<br><br><br>$<br>6,006,931<br><br><br>$<br>5,621,033<br><br><br>$<br>5,316,968<br><br><br>$<br>4,988,613<br><br><br>$<br>6,616,860<br><br><br>$<br>6,704,237<br><br><br>Core yield on total loans<br><br>4.05<br><br><br>%<br><br>4.14<br><br><br>%<br><br>4.51<br><br><br>%<br><br>4.38<br><br><br>%<br><br>4.20<br><br><br>%<br><br>4.09<br><br><br>%<br><br>4.02<br><br><br>%<br>2017<br>December 31,<br>June 30,<br>June 30,<br>2022<br>2021<br>Six Months Ended<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019
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31<br>Calculation of Tangible Stockholders’ Common Equity to Tangible Assets<br><br><br><br><br><br><br>(Dollars in thousands)<br>Total Equity<br>$<br>670,812<br><br><br>$<br>679,628<br><br><br>$<br>618,997<br><br><br>$<br>579,672<br><br><br>$<br>549,464<br><br><br>$<br>532,608<br><br><br>Less:<br><br><br><br><br><br><br><br><br><br><br>Goodwill<br><br>(17,636)<br><br><br><br>(17,636)<br><br><br><br>(17,636)<br><br><br><br>(16,127)<br><br><br><br>(16,127)<br><br><br><br>(16,127)<br><br><br>Core deposit Intangibles<br>(2,282)<br><br><br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br><br>—<br><br><br><br>328<br><br><br><br>287<br><br><br><br>292<br><br><br><br>290<br><br><br><br>291<br><br><br>Tangible Stockholders' Common Equity<br>$<br>650,894<br><br><br>$<br>659,758<br><br><br>$<br>598,476<br><br><br>$<br>563,837<br><br><br>$<br>533,627<br><br><br>$<br>516,772<br><br><br>Total Assets<br>$<br>8,339,587<br><br><br>$<br>8,045,911<br><br><br>$<br>7,976,394<br><br><br>$<br>7,017,776<br><br><br>$<br>6,834,176<br><br><br>$<br>6,299,274<br><br><br>Less:<br><br><br><br><br><br><br><br><br><br><br><br><br>Goodwill<br><br>(17,636)<br><br><br><br>(17,636)<br><br><br><br>(17,636)<br><br><br><br>(16,127)<br><br><br><br>(16,127)<br><br><br><br>(16,127)<br><br><br>Core deposit Intangibles<br>(2,282)<br><br><br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br><br>—<br><br><br><br>328<br><br><br><br>287<br><br><br><br>292<br><br><br><br>290<br><br><br><br>291<br><br><br>Tangible Assets<br>$<br>8,319,669<br><br><br>$<br>8,026,041<br><br><br>$<br>7,955,873<br><br><br>$<br>7,001,941<br><br><br>$<br>6,818,339<br><br><br>$<br>6,283,438<br><br><br>Tangible Stockholders' Common Equity to<br>Tangible Assets<br><br>7.82<br><br><br>%<br><br>8.22<br><br><br>%<br><br>7.52<br><br><br>%<br><br>8.05<br><br><br>%<br><br>7.83<br><br><br>%<br><br>8.22<br><br><br>%<br>June 30,<br>2022<br>December 31,<br>2021<br>December 31,<br>December 31,<br>December 31,<br>December 31,<br>2017<br>2018<br>2019<br>2020
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32<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
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