8-K
FLUSHING FINANCIAL CORP (FFIC)
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): May 16, 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 May 16, 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 May 16, 2022. |
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| 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 | |
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| Date: May 16, 2022 | By: | /s/ SUSAN K. CULLEN |
| | | Susan K. Cullen |
| | | Senior Executive Vice President and Chief Financial Officer |
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Exhibit 99.1
| Investor Presentation<br>(<br>May<br>-<br>June 2022)<br>May 16,<br>2022 |
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| 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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| Our Brand Promise: Rewarding Relationships<br>Nurturing Relationships<br>and Rewarding Customers, Employees, and Shareholders<br>3 |
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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>Flushing Financial Snapshot (NASDAQ: FFIC)<br>Competitive Advantages<br>Balance Sheet<br>Assets<br>$<br>8.2B<br>Loans<br>$<br>6.6B<br>Deposits<br>$<br>6.5B<br>1<br>Equity<br>$<br>0.7B<br>Performance<br>GAAP/Core ROAA<br>0.91%/0.94%<br>2<br>GAAP/Core ROAE<br>10.83%/11.27%<br>2<br>Efficiency Ratio<br>58.9%<br>2<br>Tangible Book Value<br>$<br>21.61<br>Dividend Yield<br>4.0%<br>3<br>1Q22<br>Key Statistics<br>Footprint<br>Deposits<br>primarily from<br>25<br>6<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>1,056%<br>compared to<br>979%<br>for the peer median<br>4<br>and<br>1,135<br>% for the<br>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>482<br>percentage points and the BKX<br>by<br>521<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>5/10/22<br>closing price of $<br>21.76<br>;<br>4<br>Performance calculated from 11/21/1995 to<br>3/31/22;<br>Banks include: CARV, CNOB, DCOM, FLIC, LBAI, NYCB, UNTY, and VLY;<br>5<br>Peers include BCBP, DCOM, FLIC, ISBC, KRNY, LBAI,<br>NFBK, OCFC, PFS, PGC,<br>and SBNY<br>6<br>Elmhurst branch coming soon |
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| 6<br>Strong Asian Banking Market Focus<br>15%<br>of Total<br>Deposits<br>1<br>$<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 $749MM<br>and Deposits $995M<br>Multilingual Branch Staff<br>Serves Diverse Customer Base in NYC<br>Metro Area<br>Growth Aided by the<br>Asian Advisory Board<br>Sponsorships of Cultural Activities<br>Support New and Existing<br>Opportunities<br>1<br>Includes mortgagors’ escrow deposits<br>2<br>as<br>of June 30, 2021; Latest FDIC<br>Data; includes Elmhurst<br>Expansion into Elmhurst<br>coming soon |
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| 7<br>Experienced Executive Leadership Team<br>Executive Compensation and Insider Stock Ownership<br>(6.1%<br>2<br>) Aligned with Shareholder Interests<br>John Buran<br>President<br>and CEO<br>Maria Grasso<br>SEVP, COO,<br>Corporate Secretary<br>Susan Cullen<br>SEVP, CFO,<br>Treasurer<br>Francis Korzekwinski<br>SEVP, Chief of<br>Real Estate<br>Michael Bingold<br>SEVP, Chief Retail and Client<br>Development Officer<br>Douglas McClintock<br>SEVP, General Counsel<br>FFIC: 21 years<br>Industry:<br>45<br>years<br>16<br>years<br>36<br>years<br>7<br>years<br>32<br>years<br>29<br>years<br>33<br>years<br>9<br>years<br>39<br>years<br><1 year<br>46 years<br>Allen Brewer<br>SEVP, Chief Information Officer<br>Tom Buonaiuto<br>SEVP, Chief of Staff, Deposit<br>Channel Executive<br>Vincent Giovinco<br>EVP, Commercial Real Estate<br>Lending<br>Jeoung Jin<br>EVP, Residential<br>and Mixed Use<br>Theresa Kelly<br>EVP, Business<br>Banking<br>Patricia Mezeul<br>EVP, Director of<br>Government Banking<br>13 years<br>48<br>years<br>14 years<br>1<br>30 years<br>2 years<br>24<br>years<br>24<br>years<br>29<br>years<br>16<br>years<br>38<br>years<br>14 years<br>42<br>years<br>1<br>Previously President and COO of Empire Bancorp and Empire National Bank from its inception in February 2008 until the sale to<br>Fl<br>ushing Financial in October 2020<br>2<br>Directors and executive officers as of<br>March 31<br>,<br>2022 |
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| 8<br>26 Year Track Record of Steady Growth<br>Core EPS<br>($)<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>$0.22<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<br>$<br>-<br>$2.81<br>$0.61<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<br>$0.6<br>$6.5<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<br>$0.3<br>$6.6<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<br>$0.7<br>$8.2<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<br>10% CAGR<br>9%<br>CAGR<br>13% CAGR<br>10% CAGR<br>2<br>15% CAGR<br>2<br>$4.86<br>$21.61<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>1Q22<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 1996<br>-<br>2021 |
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| 3<br>4<br>1<br>2<br>Improve<br>and Grow Funding Mix<br>Generate Appropriate<br>ly Priced Loan Growth<br><br>Noninterest<br>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>9<br>Appropriately Managing the Short Term While Investing for the Long Term |
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| 10<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 only,<br>includes Elmhurst (to open shortly); 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>30 people recruited<br>(12 Revenue<br>Producers) from<br>Merged Institutions<br>YoY |
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| 11<br>Metro New York City Economy Is Rebounding<br>0<br>0.1<br>0.2<br>0.3<br>0.4<br>0.5<br>0.6<br>0.7<br>0.8<br>0.9<br>1<br>250<br>260<br>270<br>280<br>290<br>300<br>310<br>320<br>330<br>340<br>Jan-19<br>Mar-19<br>May-19<br>Jul-19<br>Sep-19<br>Nov-19<br>Jan-20<br>Mar-20<br>May-20<br>Jul-20<br>Sep-20<br>Nov-20<br>Jan-21<br>Mar-21<br>May-21<br>Jul-21<br>Sep-21<br>House Price Index for New York City MSA<br>1<br>Recession<br>HPI<br>0<br>0.1<br>0.2<br>0.3<br>0.4<br>0.5<br>0.6<br>0.7<br>0.8<br>0.9<br>1<br>$0<br>$100<br>$200<br>$300<br>$400<br>$500<br>$600<br>$700<br>Jan-19<br>Mar-19<br>May-19<br>Jul-19<br>Sep-19<br>Nov-19<br>Jan-20<br>Mar-20<br>May-20<br>Jul-20<br>Sep-20<br>Nov-20<br>Jan-21<br>Mar-21<br>May-21<br>Jul-21<br>Sep-21<br>Nov-21<br>Jan-22<br>Mar-22<br>Median Lisitng Price per Sq Feet in NYC MSA<br>Recession<br>Median Listing Price per Square Feet<br>0<br>0.1<br>0.2<br>0.3<br>0.4<br>0.5<br>0.6<br>0.7<br>0.8<br>0.9<br>1<br>0%<br>2%<br>4%<br>6%<br>8%<br>10%<br>12%<br>14%<br>16%<br>18%<br>20%<br>Jan-19<br>Mar-19<br>May-19<br>Jul-19<br>Sep-19<br>Nov-19<br>Jan-20<br>Mar-20<br>May-20<br>Jul-20<br>Sep-20<br>Nov-20<br>Jan-21<br>Mar-21<br>May-21<br>Jul-21<br>Sep-21<br>Nov-21<br>Jan-22<br>Unemployment Rate for New York City MSA<br>Recession<br>Unemployment Rate<br>0<br>0.1<br>0.2<br>0.3<br>0.4<br>0.5<br>0.6<br>0.7<br>0.8<br>0.9<br>1<br>0<br>50<br>100<br>150<br>200<br>250<br>300<br>350<br>Jan-19<br>Mar-19<br>May-19<br>Jul-19<br>Sep-19<br>Nov-19<br>Jan-20<br>Mar-20<br>May-20<br>Jul-20<br>Sep-20<br>Nov-20<br>Jan-21<br>Mar-21<br>May-21<br>Jul-21<br>Sep-21<br>Nov-21<br>Jan-22<br>Mar-22<br>NYC Leisure and Hospitality Employment<br>2<br>Recession<br>Leisure and Hospitality Employment<br>Source: FRED Economic Data, St. Louis Fed<br>1<br>Index=1995:Q1=100<br>2<br>Thousands of Persons |
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| Record Loan Pipeline; Satisfactions Should Decline<br>12<br><br>Closings<br>poised to accelerate<br>–<br>Closings up 65% YoY excluding PPP<br>–<br>10 bank<br>mergers announced within<br>footprint<br>–<br>Strong organic growth opportunity<br><br>Pipeline up<br>55% QoQ<br>–<br>Commercial real estate is a larger driver<br>–<br>Business<br>Banking pipeline up<br>46%<br>YoY<br><br>Loan prepayments and<br>satisfactions remained elevated<br>–<br>Expected<br>to decline over time with rising<br>rates<br>Loan<br>Pipeline Up 77% YoY<br>($MM)<br>$375.8<br>$432.6<br>$530.7<br>$429.3<br>$663.7<br>$322.9<br>$324.4<br>$243.9<br>$362.7<br>$329.3<br> $-<br> $100.0<br> $200.0<br> $300.0<br> $400.0<br> $500.0<br> $600.0<br> $700.0<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>Loan Pipeline<br>Loan Closings |
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| Digital Banking<br>Usage Continues to Increase<br>13<br>Technology Enhancements Remain a Priority<br>28%<br>Increase in Monthly Mobile<br>Active Users<br>YoY<br>~<br>24,000<br>Active Online Banking Users<br>31%<br>YoY Growth<br>15%<br>Digital Banking<br>Enrollment<br>YoY Growth<br>Numerated<br>Small<br>Business<br>Lending<br>Platform<br>$4.1MM Originated<br>in<br>1Q22<br>JAM FINTOP<br>Early Look at Emerging<br>Technology<br>~4,500<br>Zelle<br>®<br>Transactions<br>>$1.6MM<br>Zelle Dollar Transactions<br>in March 2022 |
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| Deposits Costs Drive NIM Expansion<br>14<br>Base NIM FTE<br>2.60%<br>2.40<br>%<br>2.80<br>%<br>3.08%<br>3.22%<br>GAAP<br>NIM FTE<br>2.70%<br>2.47%<br>2.85<br>%<br>3.24%<br>3.36%<br>($MM)<br>See Appendix for definitions of Core and Base NII FTE and Core NIM, and Net Prepayment Penalties<br>$168.3<br>$164.2<br>$196.9<br>$243.3<br>$62.7<br>2.72%<br>2.49%<br>2.87%<br>3.17%<br>3.31%<br>4.38%<br>4.51%<br>4.14%<br>4.05%<br>4.04%<br>1.36%<br>1.76%<br>0.82%<br>0.32%<br>0.21%<br>-0.50%<br>0.50%<br>1.50%<br>2.50%<br>3.50%<br>4.50%<br>5.50%<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>1Q22<br>Base NII FTE<br>Net Prepayment Penalties<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Deposit Costs<br>Stable<br>Loan<br>Yields<br>Falling<br>Deposit<br>Costs |
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| Better Funding Profile Today Versus<br>the<br>Last Rising Rate<br>Cycle<br>15<br><br>Prior to the first rate increase in the 2015<br>-<br>2019 cycle,<br>higher yielding CDs and borrowings were 52.8% of<br>funding; in this cycle, the starting point declined<br>significantly to 24.5%<br><br>Funding<br>swaps to reprice 98 bps lower in 2Q22 and 139<br>bps lower in 2023<br><br>The cost of funding was 1.02% or 88 bps over the Fed<br>Funds in 3Q15; in this cycle the<br>starting cost<br>of funds<br>improved to 0.50% or 42 bps over Fed<br>Funds<br><br>Noninterest bearing<br>deposits were<br>5.2%<br>of<br>funding last<br>rising rate cycle<br>and improved to<br>13.4%<br>of<br>assets<br>this<br>cycle<br><br>The<br>split of the noninterest bearing deposits in 3Q15 was<br>82% business, 1% government, and 17% personal<br>compared to 75%, 2%, and 23%, respectively, in 4Q21<br><br>A 50 bps change in rates with no deposit rate<br>adjustments results in an approximate $5MM<br>annualized increase in net interest income<br>Our Ability to Lag Deposit Rate Increases Is a Key Factor in the NIM Outlook<br>Funding Profile<br>(As a<br>%<br>of<br>Total Funding)<br>NIB<br>-<br>5.2%<br>NOWs<br>-<br>27.0%<br>Savings<br>-<br>5.3%<br>MM<br>-<br>8.8%<br>CDs<br>-<br>27.9%<br>Mgt Esc<br>-<br>0.9%<br>Borrowings<br>-<br>24.9%<br>3Q15<br>NIB<br>-<br>13.4%<br>NOWs<br>-<br>26.7%<br>Savings<br>-<br>2.2%<br>MM<br>-<br>32.5%<br>CDs<br>-<br>13.2%<br>Mgt Esc<br>-<br>0.7%<br>Borrowings<br>-<br>11.3%<br>4Q21 |
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| Rising Rate Offsets<br>–<br>Asset Profile<br>16<br><br>We have several items that can<br>mitigate rising rates including:<br>–<br>Business Banking portfolio that has<br>increased to 21.6% of loans in this cycle<br>compared to only 12.2% of loans last cycle<br>–<br>$410MM of loan swaps that convert fixed<br>rate loans to floating rate<br>–<br>Approximately $480MM of real estate<br>loans that will reprice by the end of 2022<br><br>Approximately 30% or over $2B of<br>loans (including hedges) will reprice<br>higher (assuming stable or higher<br>rates) within one year<br>The Loan Mix Has Shifted to Business Banking Since the Start of the Last Cycle<br>Loan Mix<br>(As a<br>%<br>of<br>Total Loans)<br>Multifamily<br>-<br>37.9%<br>NOO CRE<br>-<br>26.8%<br>1<br>-<br>4 Family<br>-<br>12.8%<br>Construction<br>-<br>0.9%<br>Business<br>Banking<br>-<br>21.6%<br>4Q21<br>Multifamily<br>-<br>48.8%<br>NOO CRE<br>-<br>20.5%<br>1<br>-<br>4 Family<br>-<br>18.4%<br>Construction<br>-<br>0.1%<br>Business<br>Banking<br>-<br>12.2%<br>3Q15 |
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| 17<br>Deposit Mix<br>Improves As Costs<br>Continue to<br>Decline<br>Average Deposits Composition<br>($MM)<br>$4,736<br>$5,013<br>$5,163<br>$6,416<br>$6,410<br>1.36%<br>1.76%<br>0.82%<br>0.32%<br>0.21%<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>1Q22<br>Noninterest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>Deposit<br>Costs |
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| $5,536<br>$5,757<br>$6,702<br>$6,634<br>$6,601<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>2018<br>2019<br>2020<br>2021<br>1Q22<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Total Gross Loans<br>18<br>Diversified Loan Mix; Yields Are Stable<br>Loan Composition<br>Period End Loans ($MM)<br>Empire Bancorp acquisition added total loans of $685MM in 2020<br>See Appendix for definitions of Core and Base Loan Yields<br>Base Loan Yields<br>4.25%<br>4.39%<br>4.07%<br>3.95%<br>3.94%<br>Core Loan Yields<br>4.38%<br>4.51%<br>4.14%<br>4.05%<br>4.04% |
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| Well<br>-<br>Secured<br>Multifamily and CRE Portfolios with DCR of 1.8x<br>19<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>30%<br>19%<br>18%<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>2,903<br>1<br>for the market<br>•<br>Weighted average LTV<br>2<br>is 33<br>% 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: $2.3MM<br>•<br>Weighted average LTV<br>2<br>is<br>43%<br>with no loans having an LTV above 75%<br>•<br>Weighted average DCR is ~1.8x<br>3<br>•<br>~18% of the portfolio outside of branch footprint<br>•<br>Require primary operating accounts<br>Non<br>-<br>Owner Occupied CRE Geography<br>9%<br>17%<br>18%<br>22%<br>9%<br>7%<br>9%<br>3%<br>6%<br>Bronx<br>Kings<br>Manhattan<br>Queens<br>Other NY<br>Nassau<br>Suffolk<br>NJ<br>CT/Other<br>$<br>1.8B<br>Portfolio<br>1<br>CoStar New York Multifamily Market Report,<br>04<br>-<br>13<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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| 20<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 81% 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 80% of the portfolio<br>Well Secured and Diversified Real Estate Portfolio<br>Data as of<br>March 31<br>,<br>2022<br>59%<br>11%<br>7%<br>8%<br>4%<br>6%<br>3%<br>2%<br>Multifamily: 59%<br>General Commercial: 11%<br>CRE - Shopping Center: 7%<br>CRE - Strip Mall: 8%<br>CRE - Single Tenant: 4%<br>Office: 6%<br>Industrial: 3%<br>Commercial Special Use: 2%<br>$<br>4.3<br>B<br>Total Portfolio |
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| 21<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 $1MM, excluding PPP<br>1<br>Data as of<br>March<br>31,<br>2022<br>10%<br>10%<br>13%<br>8%<br>8%<br>7%<br>7%<br>6%<br>6%<br>4%<br>4%<br>3%<br>2%<br>2%<br>2%<br>2%<br>2%<br>1%<br>1%<br>1%<br>1%<br>Other: 10%<br>Wholesalers: 10%<br>Hotels: 13%<br>Transportation: 8%<br>Contractor/Construction: 8%<br>Finance & Insurance: 7%<br>Manufacturing: 7%<br>Medical: 6%<br>Real Estate Management: 6%<br>Retail: 4%<br>Professional Services: 4%<br>Theaters: 3%<br>Air Carriers & Air Transportation: 2%<br>Social Management/Services: 2%<br>Motion Picture and Video Production: 2%<br>Food & Beverage: 2%<br>Restaurants: 2%<br>Business Services: 1%<br>Printing: 1%<br>Services: 1%<br>Recreation and Vacation Management: 1%<br>$<br>1.4B<br>Total Portfolio<br>Real Estate<br>Collateral<br>$<br>656<br>MM |
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| Net Charge<br>-<br>offs Significantly Better Than the Industry<br>22<br>NCOs / Average Loans<br>0.06%<br>0.25%<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>2021<br>FFIC<br>Industry<br>6<br>basis<br>points<br>of Net<br>Charge<br>-<br>offs to<br>Average<br>Loans in<br>1Q22<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<br>” through December 31, 2021<br>2<br>Based on appraised value at origination<br><br>Over two decades and multiple credit cycles, Flushing Financial 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 $<br>20.7MM<br>of real estate loans (<br>0.3%<br>of gross loans) with an LTV of 75% or more<br>2 |
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| 23<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>(1Q22)<br>0.96%<br>0.66%<br>1.07%<br>0.87%<br>0.90%<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>1Q22<br> Criticized & Classified Loans / Gross Loans<br>128.9%<br>164.1%<br>214.3%<br>248.7%<br>266.1%<br>0.38%<br>0.38%<br>0.67%<br>0.56%<br>0.57%<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>1Q22<br>ACLs / NPLs<br>ACLs / Loans<br>$2,501<br>$1,765<br>$564<br>$248<br>$8<br>$69<br>$59<br>$1,387<br>0.34%<br>0.44%<br>0.33%<br>0.31%<br>0.00%<br>0.39%<br>3.11%<br>1.18%<br>-20.00%<br>-15.00%<br>-10.00%<br>-5.00%<br>0.00%<br>5.00%<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>0.17%<br>2018<br>2019<br>2020<br>2021<br>1Q22<br>NPAs / Assets<br>36.8% LTV on 2022 NPAs |
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| TCE Ratio Remains Over 8%; ~4.0%<br>Dividend Yield<br>1<br>24<br>84%<br>of<br>1Q22<br>Earnings<br>Returned; 45% in 2021<br>7.8%<br>Book Value Per Share Growth YoY<br>8.1% YoY Increase in Tangible Book Value Per Share<br>$19.64<br>$20.59<br>$20.11<br>$22.26<br>$22.26<br>10.98%<br>10.95%<br>9.88%<br>10.86%<br>10.84%<br>8.74%<br>8.73%<br>8.38%<br>8.98%<br>9.05%<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>1Q22<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio<br>1<br>Calculated using<br>5/10/22<br>closing price of $<br>21.76<br>Closed<br>Empire<br>Bancorp<br>Acquisition<br>$19.07<br>$20.02<br>$19.45<br>$21.61<br>$21.61<br>7.83%<br>8.05%<br>7.52%<br>8.22%<br>8.05%<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>1Q22<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>Empire<br>Closed |
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| 25<br><br>Better positioned for<br>higher rates<br>–<br>Funding costs are at record lows and funding is<br>more favorable versus the last rising rate cycle;<br>noninterest bearing deposits more than doubled as a<br>percentage of funding<br>–<br>Swap repricing starts<br>in<br>2Q22<br>and<br>is mostly done by<br>the end of<br>2023 reducing swaps costs by 120 bps<br>–<br>Our ability to control deposit rates is a key factor in<br>determining the outlook for net interest income<br><br>Low risk business model;<br>4.0%<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>On a core basis, ROAA of 0.94% and ROAE of<br>11.27% in 1Q22<br><br>Expect loan<br>growth<br>to<br>increase in 2022<br>–<br>Pipeline<br>at record levels<br>–<br>Current quarter originations increased 65% YoY, net of PPP<br>–<br>Refinancing activity should decline with higher rates<br>–<br>Prepayment speeds remain elevated<br><br>Benefiting from merger disruption<br>–<br>Added<br>30<br>people<br>over the past year from<br>announced/recently<br>closed mergers;<br>12<br>are revenue producing<br><br>We<br>are investing in the franchise and our employees<br>–<br>New services and product enhancements set to launch in<br>2022<br>–<br>$4.3MM of seasonal expenses in 1Q22; not expected to<br>repeat in 2Q22<br>–<br>Still expect high single digit core expense growth in 2022<br>($144MM in 2021)<br>Key Messages<br>1<br>Calculated using<br>5/10/22<br>closing price of $<br>21.76 |
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| Appendix |
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| PPP:<br>86%<br>of Lifetime Originations and Acquisitions Forgiven<br>27<br>Period<br>End<br>PPP Loans ($MM)<br>$251.0<br>$197.3<br>$<br>130.8<br>$77.4<br>$43.2<br>Average PPP Loans<br>($MM)<br>PPP NIM Benefit/(Drag)<br>(<br>0.04)%<br>0.00%<br>0.02%<br>0.03%<br>0.03%<br><br>Lifetime originations and acquisitions of<br>$310MM with a balance of<br>$43.2MM<br>at<br>1Q22<br>and remaining fees of<br>$1.1MM<br><br>Forgiveness totaled<br>$34.1MM in 1Q22,<br>$53.4MM<br>in 4Q21, $66.5MM in 3Q21,<br>$69.2MM in<br>2Q21, and $<br>24.1MM in<br>1Q21<br><br>$6.7MM<br>of PPP loans are in the process of<br>forgiveness as of<br>March 31<br>,<br>2022<br><br>Forgiveness expected to largely be<br>completed by Fall 2022<br><br>SBA can take up to 90 days to approve<br>forgiveness<br><br>PPP benefited the NIM by<br>3<br>bps in<br>1Q22<br>$209<br>$233<br>$165<br>$101<br>$61<br>1.98%<br>3.02%<br>4.06%<br>5.80%<br>6.68%<br>0<br>50<br>100<br>150<br>200<br>250<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>PPP<br>Yield |
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| $125<br>$321<br>$121<br>$25<br>$125<br>$230<br>$50<br>1.86%<br>2.09%<br>1.96%<br>0.47%<br>0.88%<br>0.70%<br>0.80%<br>2Q22<br>2023<br>2024<br>2025<br> Effective Swaps Maturities<br> Forward Swaps Start Date<br>Effective WA Rate<br> Forward WA Rate<br>$MM<br>28<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 |
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| Reconciliation of GAAP Earnings and Core Earnings<br>29<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>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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| 30<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>24,640<br><br><br>$<br>26,224<br><br><br><br>Day 1, Provision for Credit Losses - Empire transaction<br>—<br><br><br>1,818<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments<br><br>12,995<br><br><br><br>2,142<br><br><br><br>5,353<br><br><br><br>4,122<br><br><br><br>1,809<br><br><br><br>(982)<br><br><br>Net (gain) loss on sale of securities<br><br>(113)<br><br><br><br>701<br><br><br><br>15<br><br><br><br>1,920<br><br><br><br>—<br><br><br><br>—<br><br><br>Life insurance proceeds<br><br>—<br><br><br><br>(659)<br><br><br><br>(462)<br><br><br><br>(2,998)<br><br><br><br>—<br><br><br><br>—<br><br><br>Net gain on sale or disposition of assets<br><br>(621)<br><br><br><br>—<br><br><br><br>(770)<br><br><br><br>(1,141)<br><br><br><br>—<br><br><br><br>(621)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>129<br><br><br><br>(1,427)<br><br><br>Accelerated employee benefits upon Officer's death<br><br>—<br><br><br><br>—<br><br><br><br>455<br><br><br><br>149<br><br><br><br>—<br><br><br><br>—<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>7,834<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments<br>(2,489)<br><br><br>80<br><br><br>—<br><br><br>—<br><br><br>(924)<br><br><br>(789)<br><br><br>Merger expense<br><br>2,562<br><br><br><br>6,894<br><br><br><br>1,590<br><br><br><br>—<br><br><br><br>—<br><br><br><br>973<br><br><br>Core income before taxes<br><br>119,533<br><br><br><br>65,177<br><br><br><br>61,190<br><br><br><br>67,537<br><br><br><br>25,654<br><br><br><br>23,378<br><br><br>Provision for income taxes for core income<br><br>30,769<br><br><br><br>15,428<br><br><br><br>13,957<br><br><br><br>11,960<br><br><br><br>6,685<br><br><br><br>6,405<br><br><br>Core net income<br>$<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>18,969<br><br><br>$<br>16,973<br><br><br>GAAP diluted earnings (loss) per common share<br>$<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>0.58<br><br><br>$<br>0.60<br><br><br>Day 1, Provision for Credit Losses - Empire transaction, net of<br>tax<br>—<br><br><br>0.05<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br><br>0.31<br><br><br><br>0.06<br><br><br><br>0.14<br><br><br><br>0.10<br><br><br><br>0.04<br><br><br><br>(0.02)<br><br><br>Net (gain) loss on sale of securities, net of tax<br><br>—<br><br><br><br>0.02<br><br><br><br>—<br><br><br><br>0.05<br><br><br><br>—<br><br><br><br>—<br><br><br>Life insurance proceeds<br><br>—<br><br><br><br>(0.02)<br><br><br><br>(0.02)<br><br><br><br>(0.10)<br><br><br><br>—<br><br><br><br>—<br><br><br>Net gain on sale or disposition of assets, net of tax<br><br>(0.01)<br><br><br><br>—<br><br><br><br>(0.02)<br><br><br><br>(0.03)<br><br><br><br>—<br><br><br><br>(0.01)<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br><br>(0.05)<br><br><br><br>0.03<br><br><br><br>0.05<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.03)<br><br><br>Accelerated employee benefits upon Officer's death, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>0.01<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Federal tax reform 2017<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Prepayment penalty on borrowings, net of tax<br>—<br><br><br>0.20<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.06)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>(0.02)<br><br><br>(0.02)<br><br><br>Merger expense, net of tax<br><br>0.06<br><br><br><br>0.18<br><br><br><br>0.04<br><br><br><br>—<br><br><br><br>—<br><br><br><br>0.02<br><br><br>NYS tax change<br><br>(0.02)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Core diluted earnings per common share<br>(1)<br>$<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>0.61<br><br><br>$<br>0.54<br><br><br>Core net income, as calculated above<br>$<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>18,969<br><br><br>$<br>16,973<br><br><br>Average assets<br><br>8,143,372<br><br><br><br>7,276,022<br><br><br><br>6,947,881<br><br><br><br>6,504,598<br><br><br><br>8,049,470<br><br><br><br>8,147,714<br><br><br>Average equity<br><br>648,946<br><br><br><br>580,067<br><br><br><br>561,289<br><br><br><br>534,735<br><br><br><br>673,012<br><br><br><br>619,647<br><br><br>Core return on average assets<br>(2)<br><br>1.09<br><br><br>%<br><br>0.68<br><br><br>%<br><br>0.68<br><br><br>%<br><br>0.85<br><br><br>%<br><br>0.94<br><br><br>%<br><br>0.83<br><br><br>%<br>Core return on average equity<br>(2)<br><br>13.68<br><br><br>%<br><br>8.58<br><br><br>%<br><br>8.42<br><br><br>%<br><br>10.39<br><br><br>%<br><br>11.27<br><br><br>%<br><br>10.96<br><br><br>%<br>Three Months Ended<br>March 31,<br>March 31,<br>2022<br>2021<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019 |
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| 31<br>Reconciliation of GAAP Revenue & Pre<br>-<br>Provision Pre<br>-<br>Tax Net Revenue<br>Efficiency ratio, a non<br>-<br>GAAP measure, was calculated by dividing noninterest expenses (excluding merger expenses, OREO expense,<br>prepayment penalty on borrowings, the net gain/loss from<br>the sale of OREO and net amortization of purchase accounting adjustment) by the total of net interest income (excluding net g<br>ain<br>s and loses from fair value adjustments on qualifying hedges and<br>net amortization of purchase accounting adjustments) and noninterest income (excluding life insurance proceeds, net gains and<br>lo<br>sses from the sale or disposition of securities, assets and fair<br>value adjustments)<br><br>(Dollars In thousands)<br><br><br><br><br><br><br><br><br><br>GAAP Net interest income<br>$<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>63,479<br><br><br>$<br>60,892<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(2,079)<br><br><br>1,185<br><br><br>1,678<br><br><br>—<br><br><br>129<br><br><br>(1,427)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(3,049)<br><br><br>(11)<br><br><br>—<br><br><br>—<br><br><br>(1,058)<br><br><br>(922)<br><br><br>Core Net interest income<br>$<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>62,550<br><br><br>$<br>58,543<br><br><br>GAAP Noninterest income<br>$<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>1,313<br><br><br>$<br>6,311<br><br><br>Net (gain) loss from fair value adjustments<br>12,995<br><br><br>2,142<br><br><br>5,353<br><br><br>4,122<br><br><br>1,809<br><br><br>(982)<br><br><br>Net (gain) loss on sale of securities<br>(113)<br><br><br>701<br><br><br>15<br><br><br>1,920<br><br><br>—<br><br><br>—<br><br><br>Life insurance proceeds<br>—<br><br><br>(659)<br><br><br>(462)<br><br><br>(2,998)<br><br><br>—<br><br><br>—<br><br><br>Net gain on disposition of assets<br>(621)<br><br><br>—<br><br><br>(770)<br><br><br>(1,141)<br><br><br>—<br><br><br>(621)<br><br><br>Core Noninterest income<br>$<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>3,122<br><br><br>$<br>4,708<br><br><br>GAAP Noninterest expense<br>$<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>38,794<br><br><br>$<br>38,159<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>(7,834)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Accelerated employee benefits upon<br>Officer's death<br>—<br><br><br>—<br><br><br>(455)<br><br><br>(149)<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(560)<br><br><br>(91)<br><br><br>—<br><br><br>—<br><br><br>(134)<br><br><br>(133)<br><br><br>Merger expense<br>(2,562)<br><br><br>(6,894)<br><br><br>(1,590)<br><br><br>—<br><br><br>—<br><br><br>(973)<br><br><br>Core Noninterest expense<br>$<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>38,660<br><br><br>$<br>37,053<br><br><br>Net interest income<br>$<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>63,479<br><br><br>$<br>60,892<br><br><br>Noninterest income<br>3,687<br><br><br>11,043<br><br><br>9,471<br><br><br>10,337<br><br><br>1,313<br><br><br>6,311<br><br><br>Noninterest expense<br>(147,322)<br><br><br>(137,931)<br><br><br>(115,269)<br><br><br>(111,683)<br><br><br>(38,794)<br><br><br>(38,159)<br><br><br>Pre-provision pre-tax net revenue<br>$<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>25,998<br><br><br>$<br>29,044<br><br><br>Core:<br>Net interest income<br>$<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>62,550<br><br><br>$<br>58,543<br><br><br>Noninterest income<br>15,948<br><br><br>13,227<br><br><br>13,607<br><br><br>12,240<br><br><br>3,122<br><br><br>4,708<br><br><br>Noninterest expense<br>(144,200)<br><br><br>(123,112)<br><br><br>(113,224)<br><br><br>(111,534)<br><br><br>(38,660)<br><br><br>(37,053)<br><br><br>Pre-provision pre-tax net revenue<br>$<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>27,012<br><br><br>$<br>26,198<br><br><br>Efficiency Ratio<br>55.7<br><br><br>%<br>58.7<br><br><br>%<br>63.9<br><br><br>%<br>62.1<br><br><br>%<br>%<br>58.9<br><br><br>%<br>58.6<br><br><br>%<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>Three Months Ended<br>March 31,<br>March 31,<br>2022<br>2021 |
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| 32<br>Reconciliation of GAAP NII & NIM to CORE and Base NII & NIM<br><br>(Dollars In thousands)<br>GAAP net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br><br><br>$<br>63,479<br><br><br>$<br>60,892<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>129<br><br><br><br>(1,427)<br><br><br>Net amortization of purchase accounting adjustments<br><br>(3,049)<br><br><br><br>(11)<br><br><br><br>—<br><br><br>—<br><br><br>(1,058)<br><br><br>(922)<br><br><br>Tax equivalent adjustment<br>450<br><br><br>508<br><br><br>542<br><br><br>895<br><br><br>124<br><br><br>111<br><br><br>Core net interest income FTE<br>$<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>62,674<br><br><br>$<br>58,654<br><br><br>Prepayment penalties received on loans and<br>securities, net of reversals and recoveries of interest<br>from nonaccrual loans<br><br>(6,627)<br><br><br><br>(4,576)<br><br><br><br>(6,501)<br><br><br>(7,058)<br><br><br><br>(1,716)<br><br><br><br>(948)<br><br><br>Base net interest income FTE<br>$<br>236,664<br><br><br>$<br>192,305<br><br><br>$<br>157,659<br><br><br>$<br>161,243<br><br><br>$<br>60,958<br><br><br>$<br>57,706<br><br><br>Total average interest-earning assets<br>(1)<br>$<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>7,577,053<br><br><br>$<br>7,676,833<br><br><br>Core net interest margin FTE<br><br>3.17<br><br><br>%<br><br>2.87<br><br><br>%<br><br>2.49<br><br><br>%<br><br>2.72<br><br><br>%<br><br>3.31<br><br><br>%<br><br>3.06<br><br><br>%<br>Base net interest margin FTE<br><br>3.08<br><br><br>%<br><br>2.80<br><br><br>%<br><br>2.40<br><br><br>%<br><br>2.60<br><br><br>%<br><br>3.22<br><br><br>%<br><br>3.01<br><br><br>%<br>GAAP interest income on total loans, net<br>$<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>67,516<br><br><br>$<br>69,021<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(2,079)<br><br><br><br>1,185<br><br><br><br>1,678<br><br><br><br>—<br><br><br><br>129<br><br><br><br>(1,427)<br><br><br>Net amortization of purchase accounting adjustments<br>(3,013)<br><br><br>(356)<br><br><br>—<br><br><br>—<br><br><br>(1,117)<br><br><br>(728)<br><br><br>Core interest income on total loans, net<br>$<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>66,528<br><br><br>$<br>66,866<br><br><br>Prepayment penalties received on loans and<br>securities, net of reversals and recoveries of interest<br>from nonaccrual loans<br><br>(6,625)<br><br><br><br>(4,501)<br><br><br><br>(6,501)<br><br><br><br>(6,956)<br><br><br><br>(1,716)<br><br><br><br>(947)<br><br><br>Base interest income on total loans, net<br>$<br>262,614<br><br><br>$<br>244,481<br><br><br>$<br>246,921<br><br><br>$<br>225,763<br><br><br>$<br>64,812<br><br><br>$<br>65,919<br><br><br>Average total loans, net<br>(1)<br>$<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>6,586,253<br><br><br>$<br>6,711,446<br><br><br>Core yield on total loans<br><br>4.05<br><br><br>%<br><br>4.14<br><br><br>%<br><br>4.51<br><br><br>%<br><br>4.38<br><br><br>%<br><br>4.04<br><br><br>%<br><br>3.99<br><br><br>%<br>Base yield on total loans<br><br>3.95<br><br><br>%<br><br>4.07<br><br><br>%<br><br>4.39<br><br><br>%<br><br>4.25<br><br><br>%<br><br>3.94<br><br><br>%<br><br>3.93<br><br><br>%<br>2021<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>Three Months Ended<br>March 31,<br>March 31,<br>2022<br>1<br>Excludes purchase accounting average balances for the<br>years ended 2021 and 2020 and for the quarters ended March 31, 2022 and 2021 |
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| 33<br>Calculation of Tangible Stockholders’ Common Equity to Tangible Assets<br><br><br><br><br><br>(Dollars in thousands)<br>Total Equity<br>$<br>675,813<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>Less:<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>Core deposit Intangibles<br>(2,420)<br><br><br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br><br>328<br><br><br><br>328<br><br><br><br>287<br><br><br><br>292<br><br><br><br>290<br><br><br>Tangible Stockholders' Common Equity<br>$<br>656,085<br><br><br>$<br>659,758<br><br><br>$<br>598,476<br><br><br>$<br>563,837<br><br><br>$<br>533,627<br><br><br>Total Assets<br>$<br>8,169,833<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>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>Core deposit Intangibles<br>(2,420)<br><br><br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br><br>328<br><br><br><br>328<br><br><br><br>287<br><br><br><br>292<br><br><br><br>290<br><br><br>Tangible Assets<br>$<br>8,150,105<br><br><br>$<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>Tangible Stockholders' Common Equity to<br>Tangible Assets<br><br>8.05<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>March 31,<br>2022<br>December 31,<br>2021<br>December 31,<br>December 31,<br>December 31,<br>2018<br>2019<br>2020 |
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| 34<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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