8-K

FLUSHING FINANCIAL CORP (FFIC)

8-K 2022-02-15 For: 2022-02-15
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Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 15, 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 February 15, 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 February 17, 2022.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

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

us
FLUSHING FINANCIAL CORPORATION
Date: February 15, 2022 By: /s/ SUSAN K. CULLEN
Susan K. Cullen
Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

KBW Winter Financial Services Symposium<br>February<br>17,<br>2022
2<br>Safe Harbor Statement<br>“Safe<br>Harbor”<br>Statement<br>under<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>:<br>Statements<br>in<br>this<br>Presentation<br>relating<br>to<br>plans,<br>strategies,<br>economic<br>performance<br>and<br>trends,<br>projections<br>of<br>results<br>of<br>specific<br>activities<br>or<br>investments<br>and<br>other<br>statements<br>that<br>are<br>not<br>descriptions<br>of<br>historical<br>facts<br>may<br>be<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>,<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>..<br>Forward<br>-<br>looking<br>information<br>is<br>inherently<br>subject<br>to<br>risks<br>and<br>uncertainties,<br>and<br>actual<br>results<br>could<br>differ<br>materially<br>from<br>those<br>currently<br>anticipated<br>due<br>to<br>a<br>number<br>of<br>factors,<br>which<br>include,<br>but<br>are<br>not<br>limited<br>to,<br>risk<br>factors<br>discussed<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2020<br>and<br>in<br>other<br>documents<br>filed<br>by<br>the<br>Company<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>from<br>time<br>to<br>time<br>..<br>Forward<br>-<br>looking<br>statements<br>may<br>be<br>identified<br>by<br>terms<br>such<br>as<br>“may”,<br>“will”,<br>“should”,<br>“could”,<br>“expects”,<br>“plans”,<br>“intends”,<br>“anticipates”,<br>“believes”,<br>“estimates”,<br>“predicts”,<br>“forecasts”,<br>“goals”,<br>“potential”<br>or<br>“continue”<br>or<br>similar<br>terms<br>or<br>the<br>negative<br>of<br>these<br>terms<br>..<br>Although<br>we<br>believe<br>that<br>the<br>expectations<br>reflected<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>are<br>reasonable,<br>we<br>cannot<br>guarantee<br>future<br>results,<br>levels<br>of<br>activity,<br>performance<br>or<br>achievements<br>..<br>The<br>Company<br>has<br>no<br>obligation<br>to<br>update<br>these<br>forward<br>-<br>looking<br>statements<br>..
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Our Brand Promise: Rewarding Relationships<br>Nurturing Relationships<br>and Rewarding Customers, Employees and Shareholders<br>Investors<br>•<br>Shareholder<br>Value<br>Communities<br>•<br>Community<br>Support and<br>Involvement<br>Customers<br>•<br>Competitive<br>Products and<br>Reward<br>Programs<br>Employees<br>•<br>Employee<br>Enrichment<br>Programs<br>Regulators<br>•<br>Serving<br>Communities<br>Responsibly<br>Rewarding<br>Relationships<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>$<br>8.0B<br>Loans<br>$<br>6.6B<br>Deposits<br>$<br>6.4B<br>1<br>Equity<br>$<br>0.7B<br>Performance<br>GAAP/Core ROAA<br>1.00%/1.09%<br>2<br>GAAP/Core ROAE<br>12.60%/13.68%<br>2<br>Efficiency Ratio<br>55.72%<br>2<br>Tangible Book Value<br>$<br>21.61<br>Dividend Yield<br>3.5%<br>3<br>2021 Key Statistics<br>Footprint<br>Deposits<br>primarily from 24 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 1,145%<br>compared to 964% for the peer median<br>4<br>and 1,195% 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 550 percentage points and the BKX<br>by 573 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 using 2/4/22 closing price of $23.68;<br>4<br>Performance calculated from 11/21/1995 to 12/31/21; 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, SBNY, and STL<br>Elmhurst<br>–<br>To Open in 1Q22
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6<br>Strong Asian Banking Market Focus<br>15%<br>of Total Deposits<br>$32B<br>Deposit Market<br>Potential<br>(~3% Market Share<br>1<br>)<br>6.9%<br>FFIC 5 Year Asian Market<br>CAGR vs 3.4%<br>1<br>for the<br>Comparable Asian<br>Markets<br>Asian Communities<br>–<br>Total Loans $709MM<br>and Deposits $966M<br>Multilingual Branch Staff<br>Serves Diverse Customer Base in NYC<br>Metro Area<br>Growth Aided by the<br>Asian Advisory Board<br>Sponsorships of Cultural Activities<br>Support New and Existing<br>Opportunities<br>1<br>as of June 30, 2021; Latest FDIC Data<br>Expansion into Elmhurst<br>in 1Q22
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7<br>Experienced Executive Leadership Team<br>Executive Compensation and Insider Stock Ownership (5.5%<br>2<br>) Aligned with Shareholder Interests<br>John Buran<br>President<br>and CEO<br>Maria Grasso<br>SEVP, COO,<br>Corporate Secretary<br>Susan Cullen<br>SEVP, CFO,<br>Treasurer<br>Francis Korzekwinski<br>SEVP, Chief of<br>Real Estate<br>Michael Bingold<br>SEVP, Chief Retail and Client<br>Development Officer<br>Douglas McClintock<br>SEVP, General Counsel<br>FFIC: 21 years<br>Industry:<br>45<br>years<br>16<br>years<br>36<br>years<br>6 years<br>32<br>years<br>28 years<br>33<br>years<br>9<br>years<br>39<br>years<br><1 year<br>46 years<br>Allen Brewer<br>SEVP, Chief Information Officer<br>Tom Buonaiuto<br>SEVP, Chief of Staff, Deposit<br>Channel Executive<br>Vincent Giovinco<br>EVP, Commercial Real Estate<br>Lending<br>Jeoung Jin<br>EVP, Residential<br>and Mixed Use<br>Theresa Kelly<br>EVP, Business<br>Banking<br>Patricia Mezeul<br>EVP, Director of<br>Government Banking<br>13 years<br>48<br>years<br>14 years<br>1<br>30 years<br>2 years<br>24<br>years<br>23 years<br>29<br>years<br>16<br>years<br>38<br>years<br>14 years<br>42<br>years<br>1<br>Previously President and COO of Empire Bancorp and Empire National Bank from its inception in February 2008 until the sale to<br>Fl<br>ushing Financial in October 2020<br>2<br>Directors and executive officers as of December 31, 2021
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8<br>26 Year Track Record of Steady Growth<br>Core EPS<br>($)<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>$0.84<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>$<br>-<br>$2.81<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>$0.6<br>$6.4<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>$0.3<br>$6.6<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>$0.7<br>$8.0<br>1995<br>2000<br>2005<br>2010<br>2015<br>2020<br>2021<br>10% CAGR<br>10% 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>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>8 bank mergers<br>have been announced or closed involving Long Island area banks<br>2<br>•<br>Out of the $328B of total industry deposits<br>in Nassau, Queens, Kings, and Suffolk Counties, $60B or 18% involve a merger participant<br>3<br>•<br>93% of FFIC’s deposits<br>are in the Long Island market, including Brooklyn and Queens<br>Flushing Financial (FFIC)<br>1<br>Elmhurst Branch (FFIC) to open in 1Q22<br>Webster Financial (WBS)/<br>Sterling Bancorp (STL)<br>Valley National Bancorp (VLY)/<br>The Westchester Bank/Bank Leumi USA<br>New York Community Bancorp (NYCB)/<br>Flagstar Bancorp (FBC)<br>Citizens Financial Group (CFG)/<br>HSBC/Investors Bancorp (ISBC)<br>M&T Bank (MTB)/<br>People’s United Financial (PBCT)<br>Dime Community Bancshares (DCOM)<br>Current Pro Forma U.S. Branches<br>1<br>22 FFIC branches shown, for illustrative purposes only, Port Jefferson Station, NY and Shirley, NY locations not pictured<br>2<br>Includes DCOM, MTB/PBCT, NYCB/FBC, CGF/ISBC/HSBC, VLY/The Westchester Bank/Bank Leumi USA, and WBS/STL<br>3<br>Based on most recent (June 30, 2021) S&P Global data<br>24 people recruited<br>(9 Revenue<br>Producers) from<br>Merged Institutions<br>in 2021
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11<br><br>Pandemic Restrictions are Easing<br>–<br>Omicron hospitalizations are declining<br>–<br>Mask mandates and social distancing rules are<br>loosening<br>–<br>Subway ridership is increasing<br><br>New NYC Mayor is a Positive<br>–<br>Stronger approach on crime<br>–<br>Publicly<br>asking for a return to offices<br><br>General Economic Activity is Improving<br>–<br>NYC unemployment rate has declined but is still<br>elevated<br>–<br>Market apartment rents have increased<br><br>Flushing Bank<br>Initiatives<br>–<br>Elimination of consumer overdraft fees<br>–<br>Expanding small business lending via Numerated<br>platform<br>–<br>Loan pipelines increasing YoY<br>New York is Coming Back; Implementing Re<br>-<br>opening Strategies
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Loan Closings<br>Increase; Satisfactions Should Decline<br>12<br><br>Closings expected to increase<br>–<br>Pipeline remains strong although below the record<br>3Q21 level<br>–<br>8 bank mergers announced within footprint<br>–<br>Strong organic growth opportunity<br><br>Pipeline up 21% YoY<br>–<br>Mix is balanced with real estate and business<br>banking<br>–<br>Business Banking pipeline up 53% YoY<br><br>Satisfactions should decline<br>–<br>Loan prepayments and satisfactions remained<br>elevated in 4Q21 due to refinance activity<br>–<br>Excluding PPP, prepayment speeds increased over<br>50% in 2021 and nearly doubled in 4Q21<br>–<br>Rising rates should slow refinance and satisfaction<br>volumes over time<br>Loan Closings Up 49% QoQ<br>($MM)<br>$354.6<br>$375.8<br>$432.6<br>$530.7<br>$429.3<br>$316.0<br>$322.9<br>$324.4<br>$243.9<br>$362.7<br> $-<br> $100.0<br> $200.0<br> $300.0<br> $400.0<br> $500.0<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>Loan Pipeline<br>Loan Closings
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Digital Banking<br>Usage Continues to Increase<br>13<br>Technology Enhancements Remain a Priority<br>31%<br>Increase in Monthly Mobile<br>Active Users<br>YoY<br>~23,000<br>Active Online Banking Users<br>37%<br>YoY Growth<br>17%<br>Digital Banking<br>Enrollment<br>YoY Growth<br>Numerated<br>Improving Small Business<br>Customer Experience through<br>Automated Approval and<br>Origination<br>JAM FINTOP<br>Early Look at Emerging<br>Technology<br>Bitcoin<br>Transaction<br>Services<br>Launch Expected in 1Q22
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3<br>4<br>1<br>2<br>Ensure appropriate risk<br>-<br>adjusted returns<br>for loans while optimizing costs of funds<br>Maintain strong historical loan growth<br><br>Average noninterest deposits increased 33.6% YoY<br><br>Record low cost of deposits at 0.25% in 4Q21; Loan<br>yields fell 2 bps QoQ; Core Loan yields down 4 bps<br><br>Net<br>interest income of $62.7MM increased 12.5% YoY;<br>Core net interest income of $61.1MM up 11.7% YoY<br><br>GAAP and Core NIM decreased 5 bps and 6 bps,<br>respectively,<br>QoQ<br><br>Loan closings up 49% QoQ<br><br>Loans<br>, excluding PPP, grew 0.9%<br>QoQ<br><br>Loan pipeline strong at $429.3MM<br><br>~$<br>232.9MM of PPP forgiveness over life of program<br>representing 75% of PPP originations/acquisitions;<br>$53.4MM of forgiveness in 4Q21; $77.4MM PPP loans<br>remain<br>Enhance<br>core earnings power by<br>improving scalability and efficiency<br>Manage asset quality with consistently<br>disciplined underwriting<br><br>GAAP EPS $0.58 vs $0.11 YoY, up 427%<br><br>Core<br>1<br>EPS $0.67 vs $0.58 YoY, 16%<br><br>Continued digital adoption gains<br><br>Added 24 people from merged/merging institutions in<br>2021, 38% are revenue<br>producers<br><br>NPAs/Assets improved to 19 bps<br><br>Criticized and classified loans were 87 bps of loans<br><br>LLRs/NPLs of 249%<br><br>Average real estate LTV is <38%<br><br>$0.8MM provision for loan losses<br>Record 2021 GAAP and Core EPS;<br>4Q21 GAAP EPS $0.58 and Core EPS of $0.67<br>14<br>GAAP ROAA and ROAE 0.89% and 10.77%; Core<br>1<br>ROAA and ROAE 1.04% and 12.49% in 4Q21<br>1<br>See Reconciliation of GAAP Earnings and Core Earnings in Appendix
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NIM Expansion in 2021 Driven by Low Deposits Costs<br>15<br>Base NIM FTE<br>2.82%<br>2.60%<br>2.40%<br>2.80%<br>3.08%<br>GAAP<br>NIM FTE<br>2.93%<br>2.70%<br>2.47<br>%<br>2.85%<br>3.24%<br>($MM)<br>See Appendix for definitions of Core and Base NII FTE and Core NIM, and Net Prepayment Penalties<br>$173.1<br>$168.3<br>$164.2<br>$196.9<br>$243.3<br>2.93%<br>2.72%<br>2.49%<br>2.87%<br>3.17%<br>4.20%<br>4.38%<br>4.51%<br>4.14%<br>4.05%<br>0.91%<br>1.36%<br>1.76%<br>0.82%<br>0.32%<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>2017<br>2018<br>2019<br>2020<br>2021<br>Base NII FTE<br>Net Prepayment Penalties<br>Core NII FTE<br>Core NIM FTE<br>Core Loan Yields<br>Deposit Costs
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The Balance Sheet Naturally Reprices Higher Over Time<br>16<br>Interest Rate Risk Profile<br>Static Balance Sheet For Base Case<br>Net Interest Income Projections<br><br>Using a static balance sheet and the year end 2021<br>yield curve, net interest income should expand<br>1<br>–<br>Benefits of swap repricing<br>•<br>Repricing of $592MM of effective swaps at 1.95% with<br>$405 million of forward starting swaps at 0.77% largely<br>through the end of 2023<br>•<br>Swaps lock in funding costs in a rising rate environment<br>–<br>Repricing of funding costs<br>–<br>Higher rates on loan originations<br><br>Floating<br>-<br>rate Initiatives help drive Net Interest Income<br>expansion<br>–<br>Immediately adding more floating<br>-<br>rate assets<br>•<br>Improves rate sensitivity by ~$3<br>-<br>12MM annually<br>–<br>Helps mitigate the negative impact of rising short<br>term rates<br>With No Change in Interest Rates, Net Interest Income Should Expand with a Static Balance Sheet In The Early Years<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>Base Case- Net Interest Income<br>With Floating-rate Initiatives<br>1<br>Analysis does not include benefits of net prepayment penalty income, fair values adjustments on hedges, or purchase accountin<br>g<br>accretion
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Preparing for a Rising Rate Environment<br>17<br>Interest Rate Risk Profile<br>Static Balance Sheet For Base Case<br>Net Interest Income Projections<br>Rates Up 200 bps over 24 Months<br><br>Net Interest Income declines in a rising rate<br>environment<br>–<br>The duration of our assets is greater than liabilities<br>–<br>Approximately 25%<br>1<br>of the loan portfolio matures or<br>reprices within one year<br>–<br>A steeper yield curve is favorable<br>–<br>The timing and the pace of interest rate increases<br>matters<br>–<br>slower rate increases over longer periods<br>of time are more favorable than an immediate shock<br>of 100+ bps<br><br>Accelerating strategies to positively impact<br>Net Interest Income from rising rates:<br>–<br>Immediately adding more floating<br>-<br>rate assets<br>–<br>Greater emphasis on growing floating<br>-<br>rate loans<br>including C&I and Construction<br>–<br>Utilize the back<br>-<br>to<br>-<br>back loan swap program to add<br>shorter duration loans<br>–<br>Grow noninterest and core deposits while lagging<br>deposit repricing<br>Balance Sheet Growth Expected to Outweigh Potential NIM Compression In 2022<br>Year 1<br>Year 2<br>Year 3<br>Year 4<br>Year 5<br>Rates Up 200 bps over 24 Months - Base Case<br>Rates Up 200 bps over 24 Months - With Floating-rate Initiative<br>1<br>Does not include approximately $400MM of floating rate swaps on fixed rate loans; if the swaps are included, the percentage o<br>f<br>loans that mature or reprice in one year totals 31%
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18<br>Deposit Mix Improves; Costs Continue to Fall<br>Average Deposits Composition<br>($MM)<br>$4,110<br>$4,447<br>$4,736<br>$5,013<br>$5,163<br>$6,416<br>0.81%<br>0.91%<br>1.36%<br>1.76%<br>0.82%<br>0.32%<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>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Non-interest Bearing<br>NOW Accounts<br>Savings<br>Money Market<br>CDs<br>Mortgage Escrow<br>Deposit<br>Costs
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$4,819<br>$5,160<br>$5,536<br>$5,757<br>$6,702<br>$6,634<br> -<br> 1,000<br> 2,000<br> 3,000<br> 4,000<br> 5,000<br> 6,000<br> 7,000<br> 8,000<br>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Multifamily<br>Commercial Real Estate<br>Construction<br>1-4 Family<br>Business Banking<br>Total Gross Loans<br>19<br>Diversified Loan Mix; Relatively Stable Yields<br>Loan Composition<br>Period End Loans ($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>4.07%<br>4.07%<br>4.25%<br>4.39%<br>4.07%<br>3.95%<br>Core Loan Yields<br>4.24%<br>4.20%<br>4.38%<br>4.51%<br>4.14%<br>4.05%
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Well<br>-<br>Secured<br>Multifamily and CRE Portfolios with DCR of 1.8x<br>20<br>Underwrite Real Estate Loans with a Cap Rate in Mid<br>-<br>5s and Stress Test Each Loan<br>Multifamily Geography<br>17%<br>30%<br>17%<br>18%<br>17%<br>Bronx<br>Kings<br>Manhattan<br>Queens<br>Other<br>$2.5B<br>Portfolio<br>•<br>Average loan size: $1.1MM<br>•<br>Average monthly rent of<br>$1,307 vs<br>$2,839<br>1<br>for the market<br>•<br>Weighted average LTV<br>2<br>is 33%, only $11MM of loans with an LTV above 75%<br>LTV<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: $2.3MM<br>•<br>Weighted average LTV<br>2<br>is 44% with no loans having an LTV above 75%<br>•<br>Weighted average DCR is ~1.8x<br>3<br>•<br>Borrowers have ~56% equity<br>•<br>Require primary operating accounts<br>Non<br>-<br>Owner Occupied CRE Geography<br>9%<br>17%<br>18%<br>22%<br>8%<br>7%<br>9%<br>3%<br>6%<br>Bronx<br>Kings<br>Manhattan<br>Queens<br>Other NY<br>Nassau<br>Suffolk<br>NJ<br>CT/Other<br>$<br>1.7B<br>Portfolio<br>1<br>CoStar New York Multifamily Market Report, 10<br>-<br>19<br>-<br>2021<br>2<br>LTVs are based on value at origination.<br>3<br>Based on most recent Annual Loan Review
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21<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 December 31, 2021<br>59%<br>11%<br>7%<br>8%<br>4%<br>6%<br>3%<br>2%<br>Multifamily: 0.59<br>General Commercial: 0.11<br>CRE - Shopping Center: 0.07<br>CRE - Strip Mall: 0.08<br>CRE - Single Tenant: 0.04<br>Office: 0.06<br>Industrial: 0.03<br>Commercial Special Use: 0.02<br>$<br>4.3<br>B<br>Total Portfolio
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22<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 $1MM, excluding PPP<br>1<br>Data as of December 31, 2021<br>15%<br>9%<br>8%<br>7%<br>6%<br>6%<br>6%<br>6%<br>5%<br>5%<br>4%<br>3%<br>3%<br>3%<br>2%<br>2%<br>2%<br>2%<br>2%<br>2%<br>1%<br>1%<br>Other: 15%<br>Hotels: 9%<br>Transportation: 8%<br>SBA: 7%<br>Manufacturing: 6%<br>Medical: 6%<br>Contractor/Construction: 6%<br>Commercial Wholesaler: 6%<br>Real Estate Management: 5%<br>Retail: 5%<br>Finance & Insurance: 4%<br>Professional Services: 3%<br>Theaters: 3%<br>Air Carriers & Air Transportation: 3%<br>Electrical Apparatus Wholesaler: 2%<br>Business Services: 2%<br>Restaurants: 2%<br>Motion Picture and Video Production: 2%<br>Not For Profit: 2%<br>Food & Beverage: 2%<br>Wholesalers: 1%<br>Information Technology: 1%<br>$<br>1.4B<br>Total Portfolio<br>Real Estate<br>Collateral<br>$624<br>MM
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Net Charge<br>-<br>offs Significantly Better Than the Industry<br>23<br>NCOs / Average Loans<br>0.06%<br>0.27%<br>1<br>-0.2%<br>0.3%<br>0.8%<br>1.3%<br>1.8%<br>2.3%<br>2.8%<br>3.3%<br>2001<br>2003<br>2005<br>2007<br>2009<br>2011<br>2013<br>2015<br>2017<br>2019<br>YTD 3Q21<br>FFIC<br>Industry<br><1 basis point of Net<br>Recoveries to Average<br>Loans in 4Q21; 5 bps<br>of Net Charge<br>-<br>offs in<br>2021<br>1<br>Note: Includes $11.2MM in taxi medallion write<br>-<br>offs in 2017 and $2.8MM in 2021 for FFIC<br>1<br>“Industry” includes FDIC insured institutions from “FDIC Statistics At A Glance” year to date through September 30, 2021<br>2<br>Based on appraised value at origination<br><br>Over two decades and multiple credit cycles, Flushing 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 $29.8MM of real estate loans (0.4% of gross loans) with an LTV of 75% or more<br>2
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24<br>Continued Strong Credit Quality<br>Note: CECL accounting adopted January 1, 2020<br>Forbearances totaled $71.9MM at December 31, 2021 with<br>$60.5MM<br>making interest payments and only<br>$11.4MM<br>with full payment deferrals.<br>NPAs / Assets<br>Criticized and Classified Loans / Gross Loans<br>Reserves / Gross Loans & Reserves / NPLs<br>ACL by Loan Segment (4Q21)<br>1.21%<br>0.96%<br>0.66%<br>1.07%<br>0.87%<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>2017<br>2018<br>2019<br>2020<br>2021<br> Criticized & Classified Loans / Gross Loans<br>112.2%<br>128.9%<br>164.1%<br>214.3%<br>248.7%<br>0.39%<br>0.38%<br>0.38%<br>0.67%<br>0.56%<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>2017<br>2018<br>2019<br>2020<br>2021<br>Reserves / NPLs<br>Reserves / Loans<br>$2,517<br>$1,776<br>$572<br>$268<br>$8<br>$60<br>$94<br>$1,339<br>0.33%<br>0.40%<br>0.31%<br>0.29%<br>0.00%<br>0.31%<br>1.29%<br>1.33%<br>-15.00%<br>-13.00%<br>-11.00%<br>-9.00%<br>-7.00%<br>-5.00%<br>-3.00%<br>-1.00%<br>1.00%<br>Multifamily<br>Residential<br>Commercial<br>Real Estate<br>1-4 Family -<br>Mixed Use<br>1-4 Family -<br>Residential<br>Co-operative<br>Apartments<br>Construction<br>Small<br>Business<br>Administration<br>Commercial<br>Business and<br>Other<br>Loan Balance<br>Reserves / Loans<br>0.29%<br>0.24%<br>0.19%<br>0.26%<br>0.19%<br>2017<br>2018<br>2019<br>2020<br>2021<br>NPAs / Assets<br>30% LTV on 2021 NPAs
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Capital<br>Expands Even With a Buyback; ~3.5%<br>Dividend Yield<br>1<br>25<br>Share<br>Repurchase<br>Restarted in 2H21;<br>56%<br>of 4Q21 Earnings Returned<br>11% Book Value Per Share Growth YoY<br>TCE Builds Post Empire Bancorp Merger<br>$17.95<br>$18.63<br>$19.64<br>$20.59<br>$20.11<br>$22.26<br>11.79%<br>11.59%<br>10.98%<br>10.95%<br>9.88%<br>10.86%<br>9.00%<br>9.02%<br>8.74%<br>8.73%<br>8.38%<br>8.98%<br>0.00%<br>5.00%<br>10.00%<br>15.00%<br>20.00%<br>25.00%<br>30.00%<br>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>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Book Value Per Share<br>CET1 Ratio<br>Leverage Ratio<br>1<br>Calculated using 2/4/22 closing price of $23.68<br>Closed<br>Empire<br>Bancorp<br>Acquisition<br>$17.40<br>$18.08<br>$19.07<br>$20.02<br>$19.45<br>$21.61<br>8.24%<br>8.22%<br>7.83%<br>8.05%<br>7.52%<br>8.22%<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>2016<br>2017<br>2018<br>2019<br>2020<br>2021<br>Tangible Book Value Per Share<br>Tangible Common Equity/Tangible Assets<br>Empire<br>Closed
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26<br><br>Noninterest Income and Expense<br>–<br>4Q21 noninterest income includes $2.0MM<br>($0.05/share, net of tax) of dividend received on<br>retirement plan investments that is not expected to<br>repeat<br>–<br>The elimination of overdraft, insufficient funds, and<br>transfer fees on consumer checking accounts is<br>expected to reduce noninterest income by $200,000 in<br>2022<br>–<br>Noninterest expense includes a one<br>-<br>time $4.3MM<br>($0.11/share, net of tax) increase in compensation and<br>benefits for all employees as a reward for achieving<br>record earnings in 2021 and employee performance<br>during the pandemic<br>–<br>Starting point for 1Q22 core expense is $34.4MM; plus<br>high mid<br>-<br>single digit inflation and $4.0<br>-<br>$4.5MM of<br>seasonal expenses<br>–<br>2022 core expenses should follow normal seasonal<br>patterns and high single digit growth expected overall<br><br>Net Interest Income/NIM<br>–<br>In 2022, net interest income driven primarily based<br>on balance sheet growth<br>–<br>Adding floating<br>-<br>rate assets<br>–<br>Core NIM impacted by timing and level of overall<br>loan growth and deployment of liquidity<br>–<br>2021 reported net interest margin contains 16 bps of<br>purchase accounting accretion, net prepayment<br>penalty income, and positive fair value markets on<br>hedges compared to mid<br>-<br>single digital basis points<br>for the years 2020 and 2019<br>–<br>PPP impact to 4Q21 NIM was 3 bps<br>–<br>Purchase accounting accretion is expected to be<br>less than $1MM per quarter<br>–<br>Loan growth, excluding PPP, is expected to improve<br>in 2022<br>1Q22 and 2022 Outlook
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27<br><br>Preparing for higher rates<br>–<br>Forward starting funding swaps start in 2022 and are<br>mostly fully phased in by the end of 2023<br>–<br>Adding floating<br>-<br>rate assets in the short and medium<br>term to improve rate risk profile<br>–<br>Net Interest Income growth driven from balance sheet<br>expansion which should more than offset potential<br>NIM compression<br><br>Low risk business model; 3.5%<br>1<br>dividend yield<br>–<br>Average LTV on real estate loans totals <38%<br>–<br>History of strong credit metrics<br>–<br>No changes to underwriting process<br><br>Maintaining through<br>-<br>the<br>-<br>cycle goals of<br>ROAA ≥1% and ROAE ≥10%<br><br>Loan growth delayed in 4Q21 but poised to<br>increase in 2022<br>–<br>Pipeline has seasoned<br>–<br>Refinancing activity should decline with higher rates<br>–<br>Economy is normalizing<br><br>Benefiting from merger disruption<br>–<br>Added 24 people from March<br>-<br>December 2021 from<br>announced/recently closed mergers; 9 are revenue<br>producing<br>–<br>Expect greater benefit when deals close and<br>integration begins<br><br>We are investing in the franchise and our<br>employees<br>–<br>New services and product enhancements set to<br>launch in 2022<br>Key Messages<br>1<br>Calculated using 2/4/22 closing price of $23.68
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Appendix
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PPP: 75% of Lifetime Originations and Acquisitions Forgiven<br>29<br>Period<br>End<br>PPP Loans ($MM)<br>$151.9<br>$251.0<br>$197.3<br>$130.8<br>$77.4<br>Average PPP Loans<br>($MM)<br>PPP NIM Benefit/(Drag)<br>(0.03)%<br>(0.04)%<br>0.00%<br>0.02%<br>0.03%<br><br>Lifetime originations and acquisitions of<br>$310MM with a balance of $77.4MM at<br>4Q21 and remaining fees of $1.9MM<br><br>Forgiveness totaled $53.4MM in 4Q21,<br>$66.5MM in 3Q21, $69.2MM in 2Q21,<br>$24.1MM in 1Q21, and $19.7MM in 4Q21<br><br>$25.2MM of PPP loans are in the process<br>of forgiveness as of December 31, 2021<br><br>Forgiveness expected to largely be<br>complete in 1H22<br><br>SBA can take up to 90 days to approve<br>forgiveness<br><br>PPP benefited the NIM by 3 bps in 4Q21<br>$144<br>$209<br>$233<br>$165<br>$101<br>1.99%<br>1.98%<br>3.02%<br>4.06%<br>5.80%<br>0<br>50<br>100<br>150<br>200<br>250<br>4Q20<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>PPP<br>Yield
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$125<br>$321<br>$121<br>$25<br>$125<br>$230<br>$50<br>1.86%<br>2.09%<br>1.96%<br>0.47%<br>0.88%<br>0.70%<br>0.80%<br>2022<br>2023<br>2024<br>2025<br> Effective Swaps Maturities<br> Forward Swaps Start Date<br>Effective WA Rate<br> Forward WA Rate<br>$MM<br>30<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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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>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>..<br>31<br>Reconciliation of GAAP Earnings and Core Earnings
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32<br>Reconciliation of GAAP Earnings and Core Earnings<br>1<br>Core diluted earnings per common share may not foot due to rounding<br>2<br>Ratios are calculated on an annualized basis<br>    <br>(Dollars In thousands, except per share data)<br>GAAP income (loss) before income taxes<br>$<br>109,278<br><br><br>$<br>45,182<br><br><br>$<br>53,331<br><br><br>$<br>65,485<br><br><br>$<br>66,134<br><br><br>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>Net (gain) loss from fair value adjustments<br> <br>12,995<br><br><br> <br>2,142<br><br><br> <br>5,353<br><br><br> <br>4,122<br><br><br> <br>3,465<br><br><br>Net (gain) loss on sale of securities<br> <br>(113)<br><br><br> <br>701<br><br><br> <br>15<br><br><br> <br>1,920<br><br><br> <br>186<br><br><br>Life insurance proceeds<br> <br>—<br><br><br> <br>(659)<br><br><br> <br>(462)<br><br><br> <br>(2,998)<br><br><br> <br>(1,405)<br><br><br>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>Net (gain) loss from fair value adjustments on qualifying<br>hedges<br> <br>(2,079)<br><br><br> <br>1,185<br><br><br> <br>1,678<br><br><br> <br>—<br><br><br> <br>—<br><br><br>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>Prepayment penalty on borrowings<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>(2,489)<br><br><br>80<br><br><br>—<br><br><br>—<br><br><br>—<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>Core income before taxes<br> <br>119,533<br><br><br> <br>65,177<br><br><br> <br>61,190<br><br><br> <br>67,537<br><br><br> <br>68,380<br><br><br>Provision for income taxes for core income<br> <br>30,769<br><br><br> <br>15,428<br><br><br> <br>13,957<br><br><br> <br>11,960<br><br><br> <br>22,613<br><br><br>Core net income<br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>$<br>47,233<br><br><br>$<br>55,577<br><br><br>$<br>45,767<br><br><br>GAAP diluted earnings (loss) per common share<br>$<br>2.59<br><br><br>$<br>1.18<br><br><br>$<br>1.44<br><br><br>$<br>1.92<br><br><br>$<br>1.41<br><br><br>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>Net (gain) loss from fair value adjustments, net of tax<br> <br>0.31<br><br><br> <br>0.06<br><br><br> <br>0.14<br><br><br> <br>0.10<br><br><br> <br>0.07<br><br><br>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>Life insurance proceeds<br> <br>—<br><br><br> <br>(0.02)<br><br><br> <br>(0.02)<br><br><br> <br>(0.10)<br><br><br> <br>(0.05)<br><br><br>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>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>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>Federal tax reform 2017<br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>0.13<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>Net amortization of purchase accounting adjustments, net of<br>tax<br>(0.06)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>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>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>Core diluted earnings per common share<br>(1)<br>$<br>2.81<br><br><br>$<br>1.70<br><br><br>$<br>1.65<br><br><br>$<br>1.94<br><br><br>$<br>1.57<br><br><br>Core net income, as calculated above<br>$<br>88,764<br><br><br>$<br>49,749<br><br><br>$<br>47,233<br><br><br>$<br>55,577<br><br><br>$<br>45,767<br><br><br>Average assets<br> <br>8,143,372<br><br><br> <br>7,276,022<br><br><br> <br>6,947,881<br><br><br> <br>6,504,598<br><br><br> <br>6,217,746<br><br><br>Average equity<br> <br>648,946<br><br><br> <br>580,067<br><br><br> <br>561,289<br><br><br> <br>534,735<br><br><br> <br>530,300<br><br><br>Core return on average assets<br>(2)<br> <br>1.09<br><br><br>%  <br> <br>0.68<br><br><br>%  <br> <br>0.68<br><br><br>%  <br> <br>0.85<br><br><br>%  <br> <br>0.74<br><br><br>%  <br>Core return on average equity<br>(2)<br> <br>13.68<br><br><br>%  <br> <br>8.58<br><br><br>%  <br> <br>8.42<br><br><br>%  <br> <br>10.39<br><br><br>%  <br> <br>8.63<br><br><br>%  <br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>2017<br>December 31,
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33<br>Reconciliation of GAAP Revenue & Pre<br>-<br>Provision Pre<br>-<br>Tax Net Revenue<br>    <br>(Dollars In thousands)<br>    <br>    <br>    <br>    <br>    <br>    <br>GAAP Net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>Net (gain) loss from fair value adjustments<br>on qualifying hedges<br>(2,079)<br><br><br>1,185<br><br><br>1,678<br><br><br>—<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(3,049)<br><br><br>(11)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Core Net interest income<br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>$<br>163,618<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>GAAP Noninterest income<br>$<br>3,687<br><br><br>$<br>11,043<br><br><br>$<br>9,471<br><br><br>$<br>10,337<br><br><br>$<br>10,362<br><br><br>Net (gain) loss from fair value adjustments<br>12,995<br><br><br>2,142<br><br><br>5,353<br><br><br>4,122<br><br><br>3,465<br><br><br>Net (gain) loss on sale of securities<br>(113)<br><br><br>701<br><br><br>15<br><br><br>1,920<br><br><br>186<br><br><br>Life insurance proceeds<br>—<br><br><br>(659)<br><br><br>(462)<br><br><br>(2,998)<br><br><br>(1,405)<br><br><br>Net gain on disposition of assets<br>(621)<br><br><br>—<br><br><br>(770)<br><br><br>(1,141)<br><br><br>—<br><br><br>Core Noninterest income<br>$<br>15,948<br><br><br>$<br>13,227<br><br><br>$<br>13,607<br><br><br>$<br>12,240<br><br><br>$<br>12,608<br><br><br>GAAP Noninterest expense<br>$<br>147,322<br><br><br>$<br>137,931<br><br><br>$<br>115,269<br><br><br>$<br>111,683<br><br><br>$<br>107,474<br><br><br>Prepayment penalty on borrowings<br>—<br><br><br>(7,834)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Accelerated employee benefits upon<br>Officer's death<br>—<br><br><br>—<br><br><br>(455)<br><br><br>(149)<br><br><br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(560)<br><br><br>(91)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Merger expense<br>(2,562)<br><br><br>(6,894)<br><br><br>(1,590)<br><br><br>—<br><br><br>—<br><br><br>Core Noninterest expense<br>$<br>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>Net interest income<br>$<br>247,969<br><br><br>$<br>195,199<br><br><br>$<br>161,940<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>Noninterest income<br>3,687<br><br><br>11,043<br><br><br>9,471<br><br><br>10,337<br><br><br>10,362<br><br><br>Noninterest expense<br>(147,322)<br><br><br>(137,931)<br><br><br>(115,269)<br><br><br>(111,683)<br><br><br>(107,474)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>104,334<br><br><br>$<br>68,311<br><br><br>$<br>56,142<br><br><br>$<br>66,060<br><br><br>$<br>75,995<br><br><br>Core:<br>Net interest income<br>$<br>242,841<br><br><br>$<br>196,373<br><br><br>$<br>163,618<br><br><br>$<br>167,406<br><br><br>$<br>173,107<br><br><br>Noninterest income<br>15,948<br><br><br>13,227<br><br><br>13,607<br><br><br>12,240<br><br><br>12,608<br><br><br>Noninterest expense<br>(144,200)<br><br><br>(123,112)<br><br><br>(113,224)<br><br><br>(111,534)<br><br><br>(107,474)<br><br><br>Pre-provision pre-tax net revenue<br>$<br>114,589<br><br><br>$<br>86,488<br><br><br>$<br>64,001<br><br><br>$<br>68,112<br><br><br>$<br>78,241<br><br><br>Efficiency Ratio<br>55.7<br><br><br>%<br>58.7<br><br><br>%<br>63.9<br><br><br>%<br>62.1<br><br><br>%<br>57.9<br><br><br>%<br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>December 31,<br>2017<br>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)
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34<br>Reconciliation of GAAP NII & NIM to CORE and Base NII & NIM<br>1<br>Excludes purchase accounting average balances for the<br>years ended 2021 and 2020<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>$<br>173,107<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br> <br>(2,079)<br><br><br> <br>1,185<br><br><br> <br>1,678<br><br><br> <br>—<br><br><br> <br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br> <br>(3,049)<br><br><br> <br>(11)<br><br><br> <br>—<br><br><br>—<br><br><br>—<br><br><br>Tax equivalent adjustment<br>450<br><br><br>508<br><br><br>542<br><br><br>895<br><br><br>—<br><br><br>Core net interest income FTE<br>$<br>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>Prepayment penalties received on loans and<br>securities, net of reversals and recoveries of<br>interest 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>(7,050)<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>$<br>166,057<br><br><br>Total average interest-earning assets<br>(1)<br>$<br>7,681,441<br><br><br>$<br>6,863,219<br><br><br>$<br>6,582,473<br><br><br>$<br>6,194,248<br><br><br>$<br>5,916,073<br><br><br>Core net interest margin FTE<br> <br>3.17<br><br><br>%  <br> <br>2.87<br><br><br>%  <br> <br>2.49<br><br><br>%  <br> <br>2.72<br><br><br>%  <br> <br>2.93<br><br><br>%  <br>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>2.81<br><br><br>%  <br>GAAP interest income on total loans, net<br>$<br>274,331<br><br><br>$<br>248,153<br><br><br>$<br>251,744<br><br><br>$<br>232,719<br><br><br>$<br>209,283<br><br><br>Net (gain) loss from fair value adjustments on<br>qualifying hedges<br> <br>(2,079)<br><br><br> <br>1,185<br><br><br> <br>1,678<br><br><br> <br>—<br><br><br> <br>—<br><br><br>Net amortization of purchase accounting<br>adjustments<br>(3,013)<br><br><br>(356)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Core interest income on total loans, net<br>$<br>269,239<br><br><br>$<br>248,982<br><br><br>$<br>253,422<br><br><br>$<br>232,719<br><br><br>$<br>209,283<br><br><br>Prepayment penalties received on loans and<br>securities, net of reversals and recoveries of<br>interest 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>(6,221)<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>$<br>203,062<br><br><br>Average total loans, net<br>(1)<br>$<br>6,653,980<br><br><br>$<br>6,006,931<br><br><br>$<br>5,621,033<br><br><br>$<br>5,316,968<br><br><br>$<br>4,988,613<br><br><br>Core yield on total loans<br> <br>4.05<br><br><br>%  <br> <br>4.14<br><br><br>%  <br> <br>4.51<br><br><br>%  <br> <br>4.38<br><br><br>%  <br> <br>4.20<br><br><br>%  <br>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>4.07<br><br><br>%  <br>December 31,<br>2018<br>Years Ended<br>December 31,<br>2021<br>December 31,<br>2020<br>December 31,<br>2019<br>2017<br>December 31,
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35<br>Calculation of Tangible Stockholders’ Common Equity to Tangible Assets<br>    <br>(Dollars in thousands)<br>Total Equity<br>$<br>679,628<br><br><br>$<br>618,997<br><br><br>$<br>579,672<br><br><br>$<br>549,464<br><br><br>$<br>532,608<br><br><br>Less:<br> <br> <br>  <br> <br>  <br> <br>  <br> <br>  <br>Goodwill<br> <br>(17,636)<br><br><br> <br>(17,636)<br><br><br> <br>(16,127)<br><br><br> <br>(16,127)<br><br><br> <br>(16,127)<br><br><br>Core deposit Intangibles<br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br> <br>328<br><br><br> <br>287<br><br><br> <br>292<br><br><br> <br>290<br><br><br> <br>291<br><br><br>Tangible Stockholders' Common Equity<br>$<br>659,758<br><br><br>$<br>598,476<br><br><br>$<br>563,837<br><br><br>$<br>533,627<br><br><br>$<br>516,772<br><br><br>Total Assets<br>$<br>8,045,911<br><br><br>$<br>7,976,394<br><br><br>$<br>7,017,776<br><br><br>$<br>6,834,176<br><br><br>$<br>6,299,274<br><br><br>Less:<br> <br>  <br> <br>  <br> <br>  <br> <br>  <br> <br>  <br>Goodwill<br> <br>(17,636)<br><br><br> <br>(17,636)<br><br><br> <br>(16,127)<br><br><br> <br>(16,127)<br><br><br> <br>(16,127)<br><br><br>Core deposit Intangibles<br>(2,562)<br><br><br>(3,172)<br><br><br>—<br><br><br>—<br><br><br>—<br><br><br>Intangible deferred tax liabilities<br> <br>328<br><br><br> <br>287<br><br><br> <br>292<br><br><br> <br>290<br><br><br> <br>291<br><br><br>Tangible Assets<br>$<br>8,026,041<br><br><br>$<br>7,955,873<br><br><br>$<br>7,001,941<br><br><br>$<br>6,818,339<br><br><br>$<br>6,283,438<br><br><br>Tangible Stockholders' Common Equity to<br>Tangible Assets<br> <br>8.22<br><br><br>%<br> <br>7.52<br><br><br>%<br> <br>8.05<br><br><br>%  <br> <br>7.83<br><br><br>%  <br> <br>8.22<br><br><br>%  <br>December 31,<br>2021<br>December 31,<br>December 31,<br>December 31,<br>December 31,<br>2017<br>2018<br>2019<br>2020
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36<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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