8-K

FLUSHING FINANCIAL CORP (FFIC)

8-K 2023-01-26 For: 2023-01-26
View Original
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): January 26, 2023

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

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

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

(Address of principal executive offices)

( 718 ) 961-5400

(Registrant's telephone number, including area code)

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

Item 7.01. Regulation FD Disclosure.

On January 26, 2023, Flushing Financial Corp. (the “Company”) made available to investors, and to post on this website, the earnings presentation for the 2022 fourth quarter earnings, the presentation attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Presentation dated January 27, 2023.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

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

us
FLUSHING FINANCIAL CORPORATION
Date: January 26, 2023 By: /s/ SUSAN K. CULLEN
Susan K. Cullen
Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

4Q22 Earnings Conference Call<br>January 27, 2023
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>..
---
3<br>4<br>1<br>2<br>Improve<br>and Grow Funding Mix<br>Generate Appropriately Priced Loan Growth<br><br>Average noninterest bearing deposits increased 0.3%<br>YoY<br><br>Core deposits are 79.8% of average deposits and<br>mortgage escrow<br><br>Core deposit yields increased 87 bps QoQ to 1.63%;<br>Interest bearing deposit beta of 45.4% to date<br><br>Loan closings of $225.2MM, down 37.9% YoY, with yields<br>of 6.10%, up 150 bps<br>QoQ<br>and 259 bps YoY<br><br>Net loans increased 4.4<br>% YoY%<br><br>Loan pipeline of $252.2MM<br><br>Loan yield increased 31 bps QoQ; Core loan yield<br>expanded 28 bps<br>QoQ<br>Manage Asset Quality<br>Invest in the Future<br><br>NPAs increased 6.8%, only 63 bps of assets<br><br>LTV on NPAs is 52.3%<br><br>The total real estate portfolio has an average LTV of<br><37%<br><br>Weighted average debt service coverage ratios of 1.7x for<br>the multifamily and commercial real estate portfolios<br><br>Added 51 people from merged/merging institutions since<br>2021; 23 are revenue producers<br><br>Digital users and engagement continues to expand<br><br>In 2022, originated approximately $22.5MM of loan<br>commitments on the digital platform<br>4Q22 GAAP EPS $0.34 and Core<br>1<br>EPS of $0.57<br>3<br>GAAP ROAA and ROAE 0.48% and 6.06%; Core<br>1<br>ROAA and ROAE 0.82% and 10.29%<br>1<br>See Reconciliation of GAAP Earnings and Core Earnings in Appendix
---
4<br>Annual Financial Highlights<br>Reported Results<br>EPS<br>$2.50<br>$2.59<br>$1.18<br>$1.44<br>$1.92<br>$1.41<br>ROAA<br>0.93<br>%<br>1.00<br><br><br>%<br>0.48<br><br><br>%<br>0.59<br><br><br>%<br>0.85<br><br><br>%<br>0.66<br><br><br>%<br>ROAE<br>11.44<br>12.60<br><br><br>5.98<br><br><br>7.35<br><br><br>10.30<br><br><br>7.74<br><br><br>NIM FTE<br>3.11<br>3.24<br><br><br>2.85<br><br><br>2.47<br><br><br>2.70<br><br><br>2.93<br><br><br>Core<br>1<br> Results<br>EPS<br>$2.49<br>$2.81<br>$1.70<br>$1.65<br>$1.94<br>$1.57<br>ROAA<br>0.92<br>%<br>1.09<br><br><br>%<br>0.68<br><br><br>%<br>0.68<br><br><br>%<br>0.85<br><br><br>%<br>0.74<br><br><br>%<br>ROAE<br>11.42<br>13.68<br><br><br>8.58<br><br><br>8.42<br><br><br>10.39<br><br><br>8.63<br><br><br>NIM FTE<br>3.07<br>3.17<br><br><br>2.87<br><br><br>2.49<br><br><br>2.72<br><br><br>2.93<br><br><br>Credit Quality<br>NPAs/Loans & REO<br>0.77<br>%<br>0.23<br><br><br>%<br>0.31<br><br><br>%<br>0.24<br><br><br>%<br>0.29<br><br><br>%<br>0.35<br><br><br>%<br>LLR/Loans<br>0.58<br>0.56<br><br><br>0.67<br><br><br>0.38<br><br><br>0.38<br><br><br>0.39<br><br><br>LLR/NPLs<br>124.89<br>248.66<br><br><br>214.27<br><br><br>164.05<br><br><br>128.87<br><br><br>112.23<br><br><br>NCOs/Avg Loans<br>0.02<br>0.05<br><br><br>0.06<br><br><br>0.04<br><br><br>-<br><br><br>0.24<br><br><br>Criticized&Classifieds/Loans<br>0.98<br>0.87<br><br><br>1.07<br><br><br>0.66<br><br><br>0.96<br><br><br>1.21<br><br><br>Capital Ratios<br>CET1<br>10.52<br>%<br>10.86<br><br><br>%<br>9.88<br><br><br>%<br>10.95<br><br><br>%<br>10.98<br><br><br>%<br>11.59<br><br><br>%<br>Tier 1<br>11.25<br>11.75<br><br><br>10.54<br><br><br>11.77<br><br><br>11.79<br><br><br>12.38<br><br><br>Total Risk-based Capital<br>14.69<br>14.32<br><br><br>12.63<br><br><br>13.62<br><br><br>13.72<br><br><br>14.48<br><br><br>Leverage Ratio<br>8.61<br>8.98<br><br><br>8.38<br><br><br>8.73<br><br><br>8.74<br><br><br>9.02<br><br><br>TCE/TA<br>7.82<br>8.22<br><br><br>7.52<br><br><br>8.05<br><br><br>7.83<br><br><br>8.22<br><br><br>Balance Sheet<br>Book Value/Share<br>$22.97<br>$22.26<br>$20.11<br>$20.59<br>$19.64<br>$18.63<br>Tangible Book Value/Share<br>22.31<br>21.61<br><br><br>19.45<br><br><br>20.02<br><br><br>19.07<br><br><br>18.08<br><br><br>Dividends/Share<br>0.88<br>0.84<br><br><br>0.84<br><br><br>0.84<br><br><br>0.80<br><br><br>0.72<br><br><br>Average Assets ($B)<br>8.3<br>8.1<br><br><br>7.3<br><br><br>7.0<br><br><br>6.5<br><br><br>6.2<br><br><br>Average Loans ($B)<br>6.7<br>6.6<br><br><br>6.0<br><br><br>5.6<br><br><br>5.3<br><br><br>5.0<br><br><br>Average Deposits ($B)<br>6.5<br>6.4<br><br><br>5.2<br><br><br>5.0<br><br><br>4.7<br><br><br>4.5<br><br><br>2017<br>2021<br>2018<br>2022<br>2020<br>2019<br>1<br>See Reconciliation of GAAP Earnings and Core Earnings in Appendix
---
5<br>Balance Sheet is Prepared for the Macro Environment<br>Credit<br>Quality<br>Liquidity<br>Interest<br>Rates<br>•<br>Conservatively underwritten loan portfolio with a history of low<br>losses<br>•<br>Average LTV of <37% for all real estate based loans<br>•<br>1.7x Debt Service Coverage Ratios on Multifamily and Non Owner<br>Occupied CRE; enough capacity to withstand higher rates<br>•<br>$3.1B of unused lines of credit available<br>•<br>43% liquidity to assets<br>•<br>14.0% Borrowings to total funding<br>•<br>NIM under pressure until Fed stops raising rates; then after a lag,<br>expect NIM to expand from contractual loan repricing<br>•<br>Disciplined on new originations to make sure risk<br>-<br>adjusted returns<br>are achieved<br>•<br>Expected to move to more Neutral rate positioning over time
---
Digital Banking Usage Continues to Increase<br>6<br>Technology Enhancements Remain a Priority<br>24%<br>Increase in Monthly Mobile<br>Deposit Active Users<br>Dec 2022 YoY<br>~27,700<br>Users with Active Online<br>Banking Status<br>20%<br>Dec 2022 YoY Growth<br>11%<br>Digital Banking<br>Enrollment<br>Dec 2022 YoY Growth<br>Numerated<br>Small Business Lending<br>Platform<br>$22.5MM of Commitments<br>in 2022<br>Internet Banks<br>iGObanking and BankPurely<br>national deposit gathering<br>platforms<br>~2% of Average Deposits<br>in Dec 2022<br>~6,500<br>Zelle<br>®<br>Transactions<br>~$2.2MM<br>Zelle Dollar Transactions<br>in Dec 2022
---
<br>Signed Lease for Bensonhurst Branch Expanding our Asian Banking Footprint<br><br>Maintained Investment Grade Rating by Kroll Bond Rating Agency, Inc.<br><br>Presented Sponsorship Check to Queens Tech + Innovation Challenge<br><br>Assisting to help transform Queens into a leading hub of innovation and technology<br><br>Attended Ribbon Cutting Ceremony for Charles B. Wang Community Health Center<br><br>Flushing Bank was a significant participant in the financing of the health center<br>7<br>Key Events During 4Q22
---
Deposit Mix Shifts With Higher Market Rates<br>8<br>Average Core Deposits are 80% of Average Deposits<br>1<br>in 4Q22<br>Total Average Deposits<br>1<br>($MM)<br>1<br>Includes mortgage escrow deposits<br><br>Average noninterest bearing deposits up<br>0.3% YoY<br><br>Noninterest bearing deposits are 14.7% of<br>average deposits<br>1<br>, down from 15.1% a year<br>ago<br><br>4Q22 checking account openings up 41%<br>YoY<br><br>Deposit growth driven by CDs<br>Average Noninterest Deposits<br>($MM)<br>15.1%<br>15.6%<br>16.2%<br>16.7%<br>14.7%<br>32.8%<br>31.8%<br>32.4%<br>28.8%<br>29.5%<br>2.4%<br>2.4%<br>2.4%<br>2.5%<br>2.2%<br>33.7%<br>35.2%<br>34.8%<br>34.0%<br>32.2%<br>14.7%<br>13.9%<br>12.7%<br>16.9%<br>20.2%<br>1.3%<br>1.1%<br>1.5%<br>1.1%<br>1.2%<br>$6,459<br>$6,410<br>$6,441<br>$6,277<br>$6,678<br>0<br>1000<br>2000<br>3000<br>4000<br>5000<br>6000<br>7000<br>8000<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Noninterest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>Deposit Costs<br>0.25%<br>0.21%<br>0.29%<br>0.76%<br>1.63%<br>$976.8<br>$1,001.6<br>$1,044.6<br>$1,050.3<br>$979.8<br>-100<br>100<br>300<br>500<br>700<br>900<br>1100<br>1300<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22
---
Deposit Rates Rise But At Slower Pace Than Fed Moves<br>9<br>Year to Date, Weighted Average Interest Bearing Deposit Beta of 45.4%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<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>3Q22<br>4Q22<br>Average Fed Funds<br>Interest Bearing Deposit Costs<br>Overall Interest Bearing Deposit Beta<br>-<br>Previous Cycle:<br>3Q15<br>-<br>1Q19 the interest bearing deposit beta was 42.5% as average Fed Funds increased 226 bps<br>-<br>Current Cycle:<br>4Q21<br>-<br>4Q22, the interest bearing deposit beta is 45.4% as average Fed Funds increased 357 bps
---
37.9%<br>38.0%<br>37.5%<br>37.5%<br>37.6%<br>26.8%<br>26.7%<br>27.6%<br>27.6%<br>27.6%<br>0.9%<br>1.0%<br>1.1%<br>0.9%<br>1.0%<br>12.8%<br>12.4%<br>12.0%<br>11.5%<br>11.5%<br>21.6%<br>21.9%<br>21.8%<br>22.5%<br>22.3%<br>$6,634<br>$6,601<br>$6,752<br>$6,948<br>$6,926<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Loan Yields Improve YoY and QoQ; Balances Flat QoQ<br>10<br>Core Loan Yields<br>4.05%<br>4.04%<br>4.15%<br>4.35%<br>4.63%<br>Loan Composition<br>Period End Loans<br>($MM)<br><br>Net loans increased 4.4% YoY<br><br>Loan pipeline totaled $252.2MM at<br>December 31, 2022; Pipeline yield increases<br>79 bps QoQ<br><br>Core loan yields improve 28 bps<br>QoQ;<br>prepayment penalty income totaled $1.2MM in<br>4Q22 vs $1.3MM in 3Q22 and $1.5MM in 4Q21<br><br>Spread between closing and satisfaction yields,<br>excluding PPP, expanded<br>in 4Q22<br>See Appendix for definitions of Core Loan Yields<br>Closings vs Satisfaction Yields Excluding PPP<br>3.51%<br>3.44%<br>3.92%<br>4.60%<br>6.10%<br>3.90%<br>3.76%<br>3.64%<br>4.74%<br>5.63%<br>(0.39)%<br>(0.32)%<br>0.28 %<br>(0.14)%<br>0.47 %<br>(1.00)%<br>(0.50)%<br>0.00 %<br>0.50 %<br>1.00 %<br>1.50 %<br>2.00 %<br>2.50 %<br>3.00 %<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>7.00%<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Closings Yield Ex PPP<br>Satisfaction Yield Ex PPP<br>Spread
---
<br>Floating rate loans include any loans (including swaps) tied to an index that reprices within 90 days<br><br>Through 2025, loans to reprice ~200+<br>bps higher assuming index values as of December 31, 2022<br><br>~15% of loans reprice with every Fed move and an additional 10<br>-<br>15% reprice annually<br>40% of the Loan Portfolio to Reprice Through 2024<br>11<br>Loan Repricing<br>($MM)<br>$1,045<br>$958<br>$758<br>$760<br>6.36%<br>4.51%<br>4.32%<br>4.06%<br>6.61%<br>6.54%<br>6.38%<br>6.36%<br> -<br> 200<br> 400<br> 600<br> 800<br> 1,000<br> 1,200<br>Floating<br>2023<br>2024<br>2025<br>Adjustable Loan Repricing<br>Maturing Fixed Rate<br>Total Loan Repicing<br>Current Rate<br>Repricing Rate
---
GAAP<br>NIM FTE<br>3.29%<br>3.36%<br>3.35%<br>3.07%<br>2.70%<br>Core Loan Yields Increase 28 bps; Core Deposit Costs Up 87 bps<br>12<br>$61.2<br>$62.7<br>$64.6<br>$60.5<br>$53.0<br>3.21%<br>3.31%<br>3.33%<br>3.03%<br>2.63%<br>4.05%<br>4.04%<br>4.15%<br>4.35%<br>4.63%<br>0.25%<br>0.22%<br>0.29%<br>0.76%<br>1.63%<br>-0.25%<br>0.75%<br>1.75%<br>2.75%<br>3.75%<br>4.75%<br>5.75%<br>$10.0<br>$20.0<br>$30.0<br>$40.0<br>$50.0<br>$60.0<br>$70.0<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Core Deposit Yield<br>($MM)<br>See Appendix for definitions of Core NII FTE, Core NIM, and Core Loan Yields
---
2.00<br> 2.20<br> 2.40<br> 2.60<br> 2.80<br> 3.00<br> 3.20<br> -<br> 0.50<br> 1.00<br> 1.50<br> 2.00<br> 2.50<br> 3.00<br>3Q15<br>4Q15<br>1Q16<br>2Q16<br>3Q16<br>4Q16<br>1Q17<br>2Q17<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>3Q15<br>-<br>1Q19 Rising Rate Cycle<br>Fed Funds (Lt)<br>NIM (Rt)<br>NIM<br>Bottoms<br>Fed<br>Starts<br>%<br>%<br><br>Last rising rate cycle, the NIM started to recover about 2 quarters after the Fed stopped raising rates<br><br>While this rising rate cycle has seen faster and greater Fed moves, the NIM is expected to follow a similar path<br><br>The key drivers will be loan growth and the competitive environment for incremental funding<br>NIM Should Start to Rebound ~2 Qtrs After Fed Stops Raising Rates<br>13<br>Impact of Rising Rates on NIM<br>Fed<br>Stops<br>Lag
---
<br>Funding Swaps to reprice lower during 2023<br>–<br>$295.8MM of effective swaps with a rate of 2.23% will mature in 2023 and will be replaced by $230MM of forward swaps with<br>a rate of 0.70%<br>–<br>By the end of 2023, $591.5MM of funding swaps with a rate of 2.41% will reprice to $525.8MM with a rate of 1.76% (65 bps of<br>savings)<br><br>Terminated certain swaps in 4Q22 that had an unrealized gain of $6.5MM<br>–<br>Gain will be accreted into net interest income largely over the next year as a yield adjustment to funding costs<br><br>Loans swaps total $384.2MM with an average rate of 5.53% to convert fixed rate loans into floating<br>14<br>Swaps to Reprice 65 bps Lower in 2023<br>Swap Type<br>Current<br>Notional<br>($M)<br>Weighted<br>Average<br>Duration<br>(Years)<br>Weighted<br>Average<br>Rate<br>Purpose<br>Effective Funding<br>Swaps<br>$591.5<br>1.6<br>2.41%<br>Convert floating rate funding<br>into<br>fixed<br>Forward Funding Swaps<br>$280.0<br>2.6<br>0.72%<br>Convert floating rate funding<br>into fixed<br>Total Funding Swaps<br>$871.5<br>Use Swaps to Narrow the Duration Gap Between Assets and Liabilities
---
<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 <37%<br>4<br>–<br>Only $23.4MM 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 Industry; Strong DSR<br>15<br>NCOs / Average Loans<br>0.02%<br>0.24%<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>2022<br>FFIC<br>Industry<br>5 basis points of<br>Net Charge<br>-<br>offs<br>to Average Loans<br>in 4Q22<br>9M22<br>Weighted average debt service ratios (DSR) for Multifamily and<br>NOO CRE portfolios at<br>~1.7x<br>1<br>-<br>200 bps shock increase in rates produces a weighted average DSR of<br>>1.25x<br>2<br>-<br>10% increase in operating expense yields a weighted average DSR of >1.50x<br>2<br>-<br>200 bps shock increase in rates and 10% increase in operating expenses<br>results in a weighted average DSR >1.15<br>2<br>-<br>In all scenarios, weighted average LTV is less than 50%<br>2<br>3<br>1<br>Based on most recent Annual Loan Review<br>2<br>Based on a sample of loans comprising 89% of loans adjusting from (2022<br>-<br>2024) with no increase in<br>rents or total income<br>3<br>“Industry” includes FDIC insured institutions from “FDIC Statistics At A Glance”<br>through September 30, 2022<br>4<br>Based on appraised value at origination
---
16<br>Continued Strong Credit Quality<br>NPAs / Assets<br>Criticized and Classified Loans / Gross Loans<br>ACL / Gross Loans & ACL / NPLs<br>ACL by Loan Segment (4Q22)<br>$2,602<br>$1,913<br>$554<br>$235<br>$6<br>$71<br>$23<br>$1,522<br>0.37%<br>0.43%<br>0.34%<br>0.38%<br>0.00%<br>0.37%<br>9.45%<br>1.15%<br>-70.00%<br>-60.00%<br>-50.00%<br>-40.00%<br>-30.00%<br>-20.00%<br>-10.00%<br>0.00%<br>10.00%<br>Multifamily<br>Residential<br>Commercial<br>Real Estate<br>1-4 Family -<br>Mixed Use<br>1-4 Family -<br>Residential<br>Co-operative<br>Apartments<br>Construction<br>Small<br>Business<br>Administration<br>Commercial<br>Business and<br>Other<br>Loan Balance ($MM)<br>ACLs / Loans<br>248.7%<br>266.1%<br>141.1%<br>142.3%<br>124.9%<br>0.56%<br>0.57%<br>0.58%<br>0.59%<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>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>ACLs / NPLs<br>ACLs / Loans<br>0.19%<br>0.17%<br>0.59%<br>0.58%<br>0.63%<br>0.41%<br>0.39%<br>0.36%<br>0.37%<br>0.00%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>FFIC<br>Peer Median*<br>52.3% LTV on 4Q22 NPAs<br>* Peer data through 3Q22; Peers include: BKU, DCOM, FLIC, HNVR, KRNY, NFBK, NYCB, PFS, and VLY<br>0.87%<br>0.90%<br>0.85%<br>0.89%<br>0.98%<br>3.36%<br>3.27%<br>2.84%<br>2.72%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>FFIC<br>Peer Median*
---
Book Value and Tangible Book Value Per Share Grow in 4Q22<br>17<br>374,862 Shares Repurchased in 4Q22; 71% of Earnings Returned in 2022<br>3.2%<br>YoY Book Value Per Share Growth<br>3.2<br>% YoY Increase in Tangible Book Value Per Share<br>$21.61<br>$21.61<br>$21.71<br>$21.81<br>$22.31<br>8.22%<br>8.05%<br>7.82%<br>7.62%<br>7.82%<br>6.90%<br>7.10%<br>7.30%<br>7.50%<br>7.70%<br>7.90%<br>8.10%<br>8.30%<br>8.50%<br>8.70%<br> $15.00<br> $16.00<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br> $23.00<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>$22.26<br>$22.26<br>$22.38<br>$22.47<br>$22.97<br>10.86%<br>10.84%<br>10.52%<br>10.49%<br>10.52%<br>8.98%<br>9.05%<br>8.91%<br>8.74%<br>8.61%<br>0.00%<br>5.00%<br>10.00%<br>15.00%<br>20.00%<br>25.00%<br>30.00%<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br> $22.00<br> $23.00<br> $24.00<br>4Q21<br>1Q22<br>2Q22<br>3Q22<br>4Q22<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio
---
18<br>Notable Items Impacting 4Q22 Results<br>•<br>Sale of Investment Securities (Non<br>-<br>Core)<br>•<br>$84.2MM of MBS sold with an approximate yield of 1.17%<br>•<br>$10.9MM pre<br>-<br>tax loss incurred; most of which was previously<br>included in tangible capital ratios<br>•<br>Proceeds are in the process of reinvestment in securities that are<br>expected to have an earn back period of 3 years or less<br>•<br>Employee Retention Tax Credit refund received (Core)<br>•<br>$1.4MM pre<br>-<br>tax refund included in Salaries and employee benefits<br>•<br>Approximate $2.8MM pre<br>-<br>tax expense reduction from benefit plans<br>(Core)<br>•<br>Fed rate movements created a decrease in discount rate used in<br>valuing certain employee benefit plans<br>•<br>4Q22 noninterest expense excluding items noted above totaled $37.9MM
---
2023 Outlook<br>19<br>With a Lag, the NIM Should Begin to Rebound After Fed Rate Increases Stop<br><br>Loan Growth<br>–<br>Higher rate environment to impact origination volumes and prepayments speeds<br><br>Funding<br>–<br>Focused on deposits; borrowings will fill any gaps<br><br>Net Interest Income<br>–<br>Expect NIM pressure until Fed stops raising rates<br>–<br>Lag before loan repricing drives NIM expansion<br><br>Noninterest Expense<br>–<br>Normalization of accruals<br>–<br>Increase in medical insurance expense<br>–<br>Increase in FDIC Insurance premiums<br>–<br>First quarter seasonality<br><br>Effective Tax Rate<br>–<br>Expecting ~24<br>-<br>25%
---
3<br>4<br>1<br>2<br>Grow Funding Sources<br>Maintain<br>Loan Portfolio<br><br>Focus on full relationships across all business units<br><br>Emphasize noninterest bearing DDA<br><br>Navigate the rate environment<br><br>More selective in lending<br><br>Focus on risk<br>-<br>adjusted returns<br><br>Full relationship lending<br>Focus on Asset Quality<br>Leverage Technology<br><br>Will not sacrifice credit quality for growth<br><br>No change to risk profile<br><br>Maintain conservative underwriting standards<br><br>Evaluate new Fintech partnerships<br><br>Expand digital lending platform<br><br>Continue to drive digital engagement<br>2023 Strategic Objectives: Navigating Through the Environment<br>20
---
21<br><br>2022 was the second highest core earnings year ever; despite challenging rate environment<br><br>Solid credit quality with a history of low losses<br>–<br>Average real estate LTVs <37%; Over 88% of the loan portfolio is real estate secured<br>–<br>Weighted average Debt Service Coverage Ratio of 1.7x for multifamily and NOO CRE<br><br>Managing through rate increases<br>–<br>After a lag, NIM should begin to recover once the Fed is done raising rates<br><br>Remaining selective with loans<br>–<br>Focus on maintaining conservative underwriting standards, full relationships, and appropriate risk<br>-<br>adjusted returns<br><br>Opportunistic capital return with strong dividend yield of 4.5%<br>1<br>–<br>Repurchased 374,862 shares in 4Q22 at an average price of $20.16<br>–<br>Balancing additional share repurchases with 8% TCE target<br>Key Messages<br>1<br>Calculated using 1/18/23 closing price of $19.55
---
Appendix<br>22
---
Reconciliation of GAAP Earnings and Core Earnings<br>23<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>borrowing<br>carried<br>at<br>fair<br>value<br>under<br>the<br>fair<br>value<br>option<br>and<br>swaps<br>designated<br>to<br>protect<br>against<br>rising<br>rates<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>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>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>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>..
---
24<br>1<br>Core diluted earnings per common share may not foot due to rounding<br>2<br>Ratios are calculated on an annualized basis<br>Reconciliation of GAAP to CORE Earnings<br>-<br>Quarters<br>(Dollars in thousands,<br><br>except per share data)<br>GAAP income before income taxes<br>$<br>12,819<br><br><br>$<br>32,422<br><br><br>$<br>34,971<br><br><br>$<br>24,640<br><br><br>$<br>22,826<br><br><br>Net (gain) loss from fair value adjustments (Noninterest<br>income (loss))<br><br>622<br><br><br><br>(5,626)<br><br><br><br>(2,533)<br><br><br><br>1,809<br><br><br><br>5,140<br><br><br>Net (gain) loss on sale of securities (Noninterest income<br>(loss))<br><br>10,948<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Life insurance proceeds (Noninterest income (loss))<br><br>(286)<br><br><br><br>—<br><br><br><br>(1,536)<br><br><br><br>—<br><br><br><br>—<br><br><br>Net gain on disposition of assets (Noninterest income (loss))<br><br>(104)<br><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 on qualifying<br>hedges (Interest and fees on loans)<br><br>(936)<br><br><br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br>Net amortization of purchase accounting adjustments<br>(Various)<br>(219)<br><br><br>(650)<br><br><br>(237)<br><br><br>(924)<br><br><br>(324)<br><br><br>Merger (benefit) expense (Various)<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(17)<br><br><br>Core income before taxes<br><br>22,844<br><br><br><br>26,118<br><br><br><br>30,725<br><br><br><br>25,654<br><br><br><br>26,503<br><br><br>Provision for core income taxes<br><br>5,445<br><br><br><br>7,165<br><br><br><br>9,207<br><br><br><br>6,685<br><br><br><br>5,535<br><br><br>Core net income<br>$<br>17,399<br><br><br>$<br>18,953<br><br><br>$<br>21,518<br><br><br>$<br>18,969<br><br><br>$<br>20,968<br><br><br>GAAP diluted earnings per common share<br>$<br>0.34<br><br><br>$<br>0.76<br><br><br>$<br>0.81<br><br><br>$<br>0.58<br><br><br>$<br>0.58<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br><br>0.02<br><br><br><br>(0.13)<br><br><br><br>(0.06)<br><br><br><br>0.04<br><br><br><br>0.13<br><br><br>Net loss on sale of securities, net of tax<br><br>0.27<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Life insurance proceeds<br><br>(0.01)<br><br><br><br>—<br><br><br><br>(0.05)<br><br><br><br>—<br><br><br><br>—<br><br><br>Net gain on disposition of assets, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br><br>(0.02)<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>(0.03)<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.01)<br><br><br>(0.02)<br><br><br>(0.01)<br><br><br>(0.02)<br><br><br>(0.01)<br><br><br>Merger (benefit) expense, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br>NYS tax change<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>$<br>0.57<br><br><br>$<br>0.62<br><br><br>$<br>0.70<br><br><br>$<br>0.61<br><br><br>$<br>0.67<br><br><br>Core net income, as calculated above<br>$<br>17,399<br><br><br>$<br>18,953<br><br><br>$<br>21,518<br><br><br>$<br>18,969<br><br><br>$<br>20,968<br><br><br>Average assets<br><br>8,518,019<br><br><br><br>8,442,657<br><br><br><br>8,211,763<br><br><br><br>8,049,470<br><br><br><br>8,090,701<br><br><br>Average equity<br><br>676,165<br><br><br><br>674,282<br><br><br><br>667,456<br><br><br><br>673,012<br><br><br><br>671,474<br><br><br>Core return on average assets<br>(2)<br><br>0.82<br><br><br>%<br><br>0.90<br><br><br>%<br><br>1.05<br><br><br>%<br><br>0.94<br><br><br>%<br><br>1.04<br><br><br>%<br>Core return on average equity<br>(2)<br><br>10.29<br><br><br>%<br><br>11.24<br><br><br>%<br><br>12.90<br><br><br>%<br><br>11.27<br><br><br>%<br><br>12.49<br><br><br>%<br>For the three months ended<br>June 30,<br>March 31,<br>2022<br>2021<br>December 31,<br>2022<br>December 31,<br>September 30,<br>2022<br>2022
---
25<br>Reconciliation of GAAP to CORE Earnings<br>-<br>Years<br><br>(Dollars In thousands, except per share data)<br>GAAP income (loss) before income taxes<br>$<br>104,852<br><br><br>$<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>Day 1, Provision for Credit Losses - Empire transaction<br>—<br><br><br>—<br><br><br>1,818<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments<br><br>(5,728)<br><br><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>Net (gain) loss on sale of securities<br><br>10,948<br><br><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>Life insurance proceeds<br><br>(1,822)<br><br><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>Net gain on sale or disposition of assets<br><br>(104)<br><br><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>Net (gain) loss from fair value adjustments on qualifying<br>hedges<br><br>(775)<br><br><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>Accelerated employee benefits upon Officer's death<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>455<br><br><br><br>149<br><br><br><br>—<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>—<br><br><br>7,834<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments<br>(2,030)<br><br><br>(2,489)<br><br><br>80<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Merger expense<br><br>—<br><br><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>Core income before taxes<br><br>105,341<br><br><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>Provision for core income taxes<br><br>28,502<br><br><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>Core net income<br>$<br>76,839<br><br><br>$<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>GAAP diluted earnings (loss) per common share<br>$<br>2.50<br><br><br>$<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>Day 1, Provision for Credit Losses - Empire transaction, net of<br>tax<br>—<br><br><br>—<br><br><br>0.05<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net (gain) loss from fair value adjustments, net of tax<br><br>(0.14)<br><br><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>Net (gain) loss on sale of securities, net of tax<br><br>0.26<br><br><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>Life insurance proceeds<br><br>(0.06)<br><br><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>Net gain on sale or disposition of assets, net of tax<br><br>—<br><br><br><br>(0.01)<br><br><br><br>—<br><br><br><br>(0.02)<br><br><br><br>(0.03)<br><br><br><br>0.13<br><br><br>Net (gain) loss from fair value adjustments on qualifying<br>hedges, net of tax<br><br>(0.02)<br><br><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>Accelerated employee benefits upon Officer's death, net of tax<br><br>—<br><br><br><br>—<br><br><br><br>—<br><br><br><br>0.01<br><br><br><br>—<br><br><br><br>—<br><br><br>Prepayment penalty on borrowings, net of tax<br>—<br><br><br>—<br><br><br>0.20<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.05)<br><br><br>(0.06)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Merger expense, net of tax<br><br>—<br><br><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>NYS tax change<br><br>—<br><br><br><br>(0.02)<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>$<br>2.49<br><br><br>$<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>Core net income, as calculated above<br>$<br>76,839<br><br><br>$<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>Average assets<br><br>8,307,137<br><br><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>Average equity<br><br>672,742<br><br><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>Core return on average assets<br>(2)<br><br>0.92<br><br><br>%<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>Core return on average equity<br>(2)<br><br>11.42<br><br><br>%<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>Years Ended<br>December 31,<br>2019<br>December 31,<br>2022<br>December 31,<br>2021<br>December 31,<br>2020<br>2018<br>December 31,<br>December 31,<br>2017<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
---
26<br>Reconciliation of GAAP Revenue and<br>Pre<br>-<br>provision Pre<br>-<br>tax Net Revenue<br>-<br>Quarters<br><br><br>(Dollars in thousands)<br><br><br><br><br>GAAP Net interest income<br>$<br>54,201<br><br><br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(936)<br><br><br>(28)<br><br><br>60<br><br><br>129<br><br><br>(1,122)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(342)<br><br><br>(775)<br><br><br>(367)<br><br><br>(1,058)<br><br><br>(462)<br><br><br>Core Net interest income<br>$<br>52,923<br><br><br>$<br>60,403<br><br><br>$<br>64,423<br><br><br>$<br>62,550<br><br><br>$<br>61,090<br><br><br>GAAP Noninterest income (loss)<br>$<br>(7,652)<br><br><br>$<br>8,995<br><br><br>$<br>7,353<br><br><br>$<br>1,313<br><br><br>$<br>(280)<br><br><br>Net (gain) loss from fair value adjustments<br>622<br><br><br>(5,626)<br><br><br>(2,533)<br><br><br>1,809<br><br><br>5,140<br><br><br>Net gain (loss) on sale of securities<br>10,948<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Life insurance proceeds<br>(286)<br><br><br>—<br><br><br>(1,536)<br><br><br>—<br><br><br>—<br><br><br>Net gain on sale of assets<br>(104)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Core Noninterest income<br>$<br>3,528<br><br><br>$<br>3,369<br><br><br>$<br>3,284<br><br><br>$<br>3,122<br><br><br>$<br>4,860<br><br><br>GAAP Noninterest expense<br>$<br>33,742<br><br><br>$<br>35,634<br><br><br>$<br>35,522<br><br><br>$<br>38,794<br><br><br>$<br>38,807<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(123)<br><br><br>(125)<br><br><br>(130)<br><br><br>(134)<br><br><br>(138)<br><br><br>Merger expense (benefit)<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>17<br><br><br>Core Noninterest expense<br>$<br>33,619<br><br><br>$<br>35,509<br><br><br>$<br>35,392<br><br><br>$<br>38,660<br><br><br>$<br>38,686<br><br><br>Net interest income<br>$<br>54,201<br><br><br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>Noninterest income (loss)<br>(7,652)<br><br><br>8,995<br><br><br>7,353<br><br><br>1,313<br><br><br>(280)<br><br><br>Noninterest expense<br>(33,742)<br><br><br>(35,634)<br><br><br>(35,522)<br><br><br>(38,794)<br><br><br>(38,807)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>12,807<br><br><br>$<br>34,567<br><br><br>$<br>36,561<br><br><br>$<br>25,998<br><br><br>$<br>23,587<br><br><br>Core:<br>Net interest income<br>$<br>52,923<br><br><br>$<br>60,403<br><br><br>$<br>64,423<br><br><br>$<br>62,550<br><br><br>$<br>61,090<br><br><br>Noninterest income<br>3,528<br><br><br>3,369<br><br><br>3,284<br><br><br>3,122<br><br><br>4,860<br><br><br>Noninterest expense<br>(33,619)<br><br><br>(35,509)<br><br><br>(35,392)<br><br><br>(38,660)<br><br><br>(38,686)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>22,832<br><br><br>$<br>28,263<br><br><br>$<br>32,315<br><br><br>$<br>27,012<br><br><br>$<br>27,264<br><br><br>Efficiency Ratio<br>59.6<br><br><br>%<br>55.7<br><br><br>%<br>52.3<br><br><br>%<br>58.9<br><br><br>%<br>58.7<br><br><br>%<br>For the three months ended<br>December 31,<br>September 30,<br>June 30,<br>March 31,<br>December 31,<br>2022<br>2022<br>2022<br>2022<br>2021
---
27<br>Reconciliation of GAAP Revenue and<br>Pre<br>-<br>provision Pre<br>-<br>tax Net Revenue<br>-<br>Years<br><br>(Dollars In thousands)<br><br><br><br><br><br><br>GAAP Net interest income<br>$<br>243,616<br><br><br>$<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>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(775)<br><br><br>(2,079)<br><br><br>1,185<br><br><br>1,678<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>3,016<br><br><br>(3,049)<br><br><br>(11)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Core Net interest income<br>$<br>245,857<br><br><br>$<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>GAAP Noninterest income<br>$<br>10,009<br><br><br>$<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>Net (gain) loss from fair value adjustments<br>(5,728)<br><br><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>Net (gain) loss on sale of securities<br>10,948<br><br><br>(113)<br><br><br>701<br><br><br>15<br><br><br>1,920<br><br><br>186<br><br><br>Life insurance proceeds<br>(1,822)<br><br><br>—<br><br><br>(659)<br><br><br>(462)<br><br><br>(2,998)<br><br><br>(1,405)<br><br><br>Net gain on disposition of assets<br>(104)<br><br><br>(621)<br><br><br>—<br><br><br>(770)<br><br><br>(1,141)<br><br><br>—<br><br><br>Core Noninterest income<br>$<br>13,303<br><br><br>$<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>GAAP Noninterest expense<br>$<br>143,692<br><br><br>$<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>Prepayment penalty on borrowings<br>—<br><br><br>—<br><br><br>(7,834)<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>—<br><br><br>(455)<br><br><br>(149)<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(578)<br><br><br>(560)<br><br><br>(91)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Merger expense<br>—<br><br><br>(2,562)<br><br><br>(6,894)<br><br><br>(1,590)<br><br><br>—<br><br><br>—<br><br><br>Core Noninterest expense<br>$<br>143,114<br><br><br>$<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>GAAP:<br>Net interest income<br>$<br>243,616<br><br><br>$<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>Noninterest income<br>10,009<br><br><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>Noninterest expense<br>(143,692)<br><br><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>Pre-provision pre-tax net revenue<br>$<br>109,933<br><br><br>$<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>Core:<br>Net interest income<br>$<br>245,857<br><br><br>$<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>Noninterest income<br>13,303<br><br><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>Noninterest expense<br>(143,114)<br><br><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>Pre-provision pre-tax net revenue<br>$<br>116,046<br><br><br>$<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>Efficiency Ratio<br>55.2<br><br><br>%<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>December 31,<br>2017<br>Years Ended<br>December 31,<br>2019<br>December 31,<br>2022<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2018
---
28<br>1<br>Excludes purchase accounting average balances for all periods presented<br>Reconciliation of GAAP to Core Net Interest Income and NIM<br>-<br>Quarters<br>(Dollars in thousands)<br>GAAP net interest income<br>$<br>54,201<br><br><br>$<br>61,206<br><br><br>$<br>64,730<br><br><br>$<br>63,479<br><br><br>$<br>62,674<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(936)<br><br><br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(342)<br><br><br>(775)<br><br><br>(367)<br><br><br>(1,058)<br><br><br>(462)<br><br><br>Tax equivalent adjustment<br>102<br><br><br>104<br><br><br>131<br><br><br>124<br><br><br>113<br><br><br>Core net interest income FTE<br>$<br>53,025<br><br><br>$<br>60,507<br><br><br>$<br>64,554<br><br><br>$<br>62,674<br><br><br>$<br>61,203<br><br><br>Total average interest-earning assets<br>(1)<br>$<br>8,050,601<br><br><br>$<br>7,984,558<br><br><br>$<br>7,746,640<br><br><br>$<br>7,577,053<br><br><br>$<br>7,634,601<br><br><br>Core net interest margin FTE<br><br>2.63<br><br><br>%<br><br>3.03<br><br><br>%<br><br>3.33<br><br><br>%<br><br>3.31<br><br><br>%<br><br>3.21<br><br><br>%<br>GAAP interest income on total loans, net<br>$<br>81,033<br><br><br>$<br>75,546<br><br><br>$<br>69,192<br><br><br>$<br>67,516<br><br><br>$<br>68,113<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(936)<br><br><br><br>(28)<br><br><br><br>60<br><br><br><br>129<br><br><br><br>(1,122)<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(372)<br><br><br>(783)<br><br><br>(357)<br><br><br>(1,117)<br><br><br>(535)<br><br><br>Core interest income on total loans, net<br>$<br>79,725<br><br><br>$<br>74,735<br><br><br>$<br>68,895<br><br><br>$<br>66,528<br><br><br>$<br>66,456<br><br><br>Average total loans, net<br>(1)<br>$<br>6,886,900<br><br><br>$<br>6,867,758<br><br><br>$<br>6,647,131<br><br><br>$<br>6,586,253<br><br><br>$<br>6,566,654<br><br><br>Core yield on total loans<br><br>4.63<br><br><br>%<br><br>4.35<br><br><br>%<br><br>4.15<br><br><br>%<br><br>4.04<br><br><br>%<br><br>4.05<br><br><br>%<br>For the three months ended<br>December 31,<br>September 30,<br>June 30,<br>March 31,<br>December 31,<br>2022<br>2022<br>2022<br>2022<br>2021
---
29<br>1<br>Excludes purchase accounting average balances for all periods presented<br>Reconciliation of GAAP to Core Net Interest Income and NIM<br>-<br>Years<br>(Dollars In thousands)<br>GAAP net interest income<br>$<br>243,616<br><br><br>$<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>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(775)<br><br><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>Net amortization of purchase accounting<br>adjustments<br><br>3,016<br><br><br><br>(3,049)<br><br><br><br>(11)<br><br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Tax equivalent adjustment<br>461<br><br><br>450<br><br><br>508<br><br><br>542<br><br><br>895<br><br><br>—<br><br><br>Core net interest income FTE<br>$<br>246,318<br><br><br>$<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>Total average interest-earning assets<br>(1)<br>$<br>7,841,407<br><br><br>$<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>Core net interest margin FTE<br><br>3.14<br><br><br>%<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>GAAP interest income on total loans, net<br>$<br>293,287<br><br><br>$<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>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br><br>(775)<br><br><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>Net amortization of purchase accounting<br>adjustments<br>2,628<br><br><br>(3,013)<br><br><br>(356)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Core interest income on total loans, net<br>$<br>295,140<br><br><br>$<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>Average total loans, net<br>(1)<br>$<br>6,748,165<br><br><br>$<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>Core yield on total loans<br><br>4.37<br><br><br>%<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>2018<br>December 31,<br>December 31,<br>2019<br>December 31,<br>2022<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2017<br>Years Ended
---
30<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
---