Slide 1: 1Q25 Earnings Conference Call
1Q25 Earnings Conference Call FlushingBank.com April 30, 2025 Building Rewarding Relationships
Slide 2: Safe Harbor Statement
Safe Harbor Statement “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Presentation relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not des
Slide 3: 1Q25 Financial Highlights
FlushingBank.com | NSQ: FFIC 3 1Q25 Financial Highlights ▪ Liquidity remains strong with $4.0 billion of undrawn lines and resources at quarter end ▪ Improved loan to deposit ratio • Loan to deposit ratio was 87.2% in 1Q25 compared to 94.0% a year ago and 93.9% in the prior quarter • Average total d
Slide 4: Area of Focus: Improving Profitability
FlushingBank.com | NSQ: FFIC 4 Area of Focus: Improving Profitability ▪ GAAP and Core NIM expanded 12 and 24 bps QoQ, respectively ▪ Real estate loans to reprice ~175 bps higher through 2027 ▪ $602 million of CDs to reprice in 2Q25 ▪ Continue to invest in the business ▪ Focused on improving ROAE ove
Slide 5: NIM Expansion
FlushingBank.com | NSQ: FFIC 5 NIM Expansion GAAP & Core NII and NIM Increase 2.06% 2.05% 2.10% 2.39% 2.51% See Appendix for definitions of Core NII FTE and Core NIM GAAP NIM FTE Net Interest Income and Margin ($ Millions) $42.4 $42.5 $45.0 $48.2 $52.8 2.06% 2.03% 2.07% 2.25% 2.49% 0.00% 1.00% 2.00%
Slide 6: Total Average Deposits
FlushingBank.com | NSQ: FFIC 6 Total Average Deposits ($ Millions) Average Deposits Increase YoY and QoQ; Cost of Deposits Declines $7,081 $7,196 $7,464 $7,450 $7,561 3.27% 3.38% 3.55% 3.21% 3.02% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 0 100 0 200 0 300 0 400 0 500 0 600 0 700 0 800 0 1Q24 2Q24 3Q24 4Q
Slide 7: Contractual Real Estate Loan Repricing to Drive NIM Expansion
FlushingBank.com | NSQ: FFIC 7 $511 $706 $993 4.66% 4.46% 4.66% 6.37% 6.36% 6.34% (5 0) 150 350 550 750 950 1,1 50 1,3 50 1,5 50 Remainder of 2025 2026 2027 Adjustable Loan Repricing Maturing Fixed Rate Total Loan Repricing Current Rate Repricing Rate Contractual Real Estate Loan Repricing to Drive
Slide 8: Area of Focus: Maintain Credit Discipline
FlushingBank.com | NSQ: FFIC 8 Area of Focus: Maintain Credit Discipline ▪ Low risk profile ▪ Conservative loan underwriting ▪ History of low credit losses ▪ Enhanced focus on relationship pricing
Slide 9: Net Charge-offs Significantly Better than the Industry; Strong DCR
FlushingBank.com | NSQ: FFIC 9 Net Charge-offs Significantly Better than the Industry; Strong DCR NCOs / Average Loans1 1 “Industry” includes all U.S. Commercial Banks per S&P Capital IQ 2 Based on most recent Annual Loan Review 3 Based upon a sample size of 62% of multifamily and investor real esta
Slide 10: Noncurrent Loans Outperforming the Industry
FlushingBank.com | NSQ: FFIC 10 Noncurrent Loans Outperforming the Industry ▪Over two decades and multiple credit cycles, Flushing Financial has a history of better than industry credit quality ▪Average LTVs on the Real Estate portfolio is less than 35%2 ▪ Only $41.7 million of real estate loans (0.
Slide 11: Low Risk Credit Profile Results
FlushingBank.com | NSQ: FFIC 11 Low Risk Credit Profile Results ACL by Loan Segment (1Q25) $2,532 $1,954 $502 $269 $63 $15 $1,397 0.50% 0.66% 0.34% 0.34% 0.32% 8.16% 0.75% -7 0. 00% -6 0. 00% -5 0. 00% -4 0. 00% -3 0. 00% -2 0. 00% -1 0. 00% 0. 00 % 10 .0 0% Multifamily Residential Commercial Real E
Slide 12: Conservative Underwriting In Multifamily Portfolio
FlushingBank.com | NSQ: FFIC 12 Conservative Underwriting In Multifamily Portfolio Portfolio Data Points Multifamily NPLs/Loans: 101 bps Criticized and Classified Loans/Loans: 116bps Weighted Average DCR1 : 1.8x Portfolio Size: $2.6 billion Average Loan Size: $1.2 million 1 Based on most recent Annu
Slide 13: Low Past Due Multifamily Loans
FlushingBank.com | NSQ: FFIC 13 Low Past Due Multifamily Loans 1 Chart data as of December 31, 2024; Peers include: BKU, DCOM, FLIC, HNVR, KRNY, NFBK, FLG, PFS, and VLY 2 As of March 31, 2025 ▪ 30-89 days past due are 0.11% of total multifamily loans ▪ NPL loans are 1.01% of total multifamily loans
Slide 14: Strong Credit Quality In Investor CRE Portfolio
FlushingBank.com | NSQ: FFIC 14 Strong Credit Quality In Investor CRE Portfolio Data Points Investor CRE NPLs/Loans: 34 bps Criticized and Classified Loans/Loans: 175 bps Weighted Average DCR1 : 1.9x Portfolio Size: $2.0 billion Average Loan Size: $2.6 million 1 Based on most recent Annual Loan Revi
Slide 15: Area of Focus: Preserving Strong Liquidity and Capital
FlushingBank.com | NSQ: FFIC 15 Area of Focus: Preserving Strong Liquidity and Capital ▪ Maintain ample liquidity with $4.0 billion of undrawn lines and resources as of March 31, 2025 ▪ Average total deposits increased by 6.8% YoY and 1.5% QoQ ▪ Unsured and uncollateralized deposits only 16% of depo
Slide 16: Strong Asian Banking Market Focus
FlushingBank.com | NSQ: FFIC 16 Strong Asian Banking Market Focus $40B market size; 3% market share ▪ Asian Communities – Total Loans $737.8 million and Deposits $1.3 billion ▪ Multilingual Branch Staff Serves Diverse Customer Base in NYC Metro Area ▪ About One Third of Branches are in Asian markets
Slide 17: Operating Environment Has Shifted
FlushingBank.com | NSQ: FFIC 17 Operating Environment Has Shifted ▪ The 3-month to 5-year spread has become inverted again ▪ Greater opportunity from loans than deposits for NIM expansion with no changes in rates ▪ Focused on remixing the balance sheet ▪ Executing on initiatives for 2025 – Demand de
Slide 18: Outlook
FlushingBank.com | NSQ: FFIC 18 Outlook Balance Sheet ▪ Expect stable total assets; loan growth market dependent ▪ Focused on improving asset and funding mix; expect normal historical funding patterns Net Interest Income ▪ $602 million of retail CDs at a weighted average rate of 4.16% to mature in t
Slide 19: Key Takeaways
FlushingBank.com | NSQ: FFIC 19 Key Takeaways Improve Profitability ▪ GAAP and Core NIM expanded 12 and 24 bps, respectively, QoQ ▪ Real Estate loans expected to reprice ~175 bps higher ▪ Some CD repricing benefit remains; overall more challenging ▪ Continuing to invest in people and branches to dri
Slide 20: Appendix
Appendix
Slide 21: Key Community Events: Lunar New Year Parades
FlushingBank.com | NSQ: FFIC 21 Key Community Events: Lunar New Year Parades
Slide 22: Digital Banking Usage Continues to Increase
FlushingBank.com | NSQ: FFIC 22 Digital Banking Usage Continues to Increase 7% Increase in Monthly Mobile Deposit Active Users March 2025 YoY Growth ~15,600 Users with Active Online Banking Status March 2025 15% Digital Banking Enrollment March 2025 YoY Growth Internet Banks iGObanking and BankPurel
Slide 23: Annual Financial Highlights
FlushingBank.com | NSQ: FFIC 23 Annual Financial Highlights 1 See Reconciliation of GAAP (Loss) Earnings and Core Earnings in Appendix Reported Results (Loss) Earnings per Share ($1.07) $0.96 $2.50 $2.59 $1.18 $1.44 ROAA (0.35) % 0.34 % 0.93 % 1.00 % 0.48 % 0.59 % ROAE (4.73) 4.25 11.44 12.60 5.98 7
Slide 24: Year Track Record of Steady Growth
FlushingBank.com | NSQ: FFIC 24 29 Year Track Record of Steady Growth Core EPS ($) Dividends per Share ($) Tangible Book Value per Share ($) Assets ($B) Total Gross Loans ($B) Total Deposits ($B) $- $0.23 1995 2000 2005 2010 2015 2020 2024 1Q25 $0.6 $7.7 1995 2000 2005 2010 2015 2020 2024 1Q25 $0.3
Slide 25: Approach to Real Estate Lending: Low Leverage & Shared Philosophy
FlushingBank.com | NSQ: FFIC 25 Approach to Real Estate Lending: Low Leverage & Shared Philosophy ▪ Since 1929, we have a long history of lending in metro New York City – Historically, credit quality has outperformed the industry and peers • From 2001-2024, median NCOs to average loans has been 4 bp
Slide 26: Loans Secured by Real Estate Have an Average LTV of <35%
FlushingBank.com | NSQ: FFIC 26 Loans Secured by Real Estate Have an Average LTV of <35% 38% 11% 10% 7 % 7 % 5 % 5 % 4 % 4 % 2 %2 %1 %1 % 1 % 1 %1 % Multifamily: 38.0% Owner Occupied CRE: 11.0% Non Real Estate: 10.0% One-to-four family - Mixed Use: 7.0% General Commercial: 7.0% CRE - Shopping Center
Slide 27: Multifamily: Conservative Underwriting Standards
FlushingBank.com | NSQ: FFIC 27 Multifamily: Conservative Underwriting Standards ▪ All loans underwritten with a 250-300 bps increase in rates at origination; especially when rates were low ▪ Debt coverage ratios (DCR) based on current rents; not projected cash flows ▪ Underwritten Net Operating Inc
Slide 28: Multifamily: Manageable Repricing Risk
FlushingBank.com | NSQ: FFIC 28 Multifamily: Manageable Repricing Risk Actual Repricing ▪ There were $63.8 million of multifamily loans schedule to reprice or mature in 1Q25 ~304 bps higher based on the December 31, 2024 index – Approximately 96% of the loans repriced and remained with the Bank – Th
Slide 29: Multifamily: DCR Risks Are Well Contained
FlushingBank.com | NSQ: FFIC 29 Multifamily: DCR Risks Are Well Contained Debt Coverage Ratio Details1 Multifamily weighted average DCR 1.8x2 Amount of loans with a DCR of 1.0-1.2x $197.8 million3 LTV of loans with a DCR of 1.0-1.2x 50% Amount of loans with a DCR <1.0x $102.2 million3 LTV of loans w
Slide 30: Multifamily: Minimal Interest Only; High Quality Performance
FlushingBank.com | NSQ: FFIC 30 Multifamily: Minimal Interest Only; High Quality Performance 1 As of December 31, 2024 2 Excludes co-ops Interest Only Loan Details1 Total interest only loans $114.5 million Weighted average LTV 50% Weighted average DCR 1.8x2 Amount of loans with a DCR <1.2x $12.3 mil
Slide 31: Multifamily: Rent Regulated Portfolio – Granular and Low Risk
FlushingBank.com | NSQ: FFIC 31 Multifamily: Rent Regulated Portfolio – Granular and Low Risk ▪ New York City area has a shortage of affordable housing creating the need for rent regulated units; annual the Rent Guidelines Board establishes rental increases for these units ▪ Loans that contain rent
Slide 32: Investor CRE: Conservative Underwriting Standards
FlushingBank.com | NSQ: FFIC 32 Investor CRE: Conservative Underwriting Standards ▪ All loans underwritten with a 250-300 bps increase in rates at origination; especially when rates were low ▪ Debt coverage ratios (DCR) based on current rents; not projected cash flows ▪ Underwritten Net Operating In
Slide 33: Geographically Diverse Multifamily and CRE Portfolios
FlushingBank.com | NSQ: FFIC 33 Geographically Diverse Multifamily and CRE Portfolios 16% 28% 22% 17% 17% Bronx Kings Manhattan Queens Other $2.6 Billion Portfolio 9% 17% 18% 19% 5% 7% 8% 3% 14% Bronx Kings Manhattan Queens Other NY Nassau Suffolk NJ CT/Other $2.0 Billion Portfolio Multifamily Geogr
Slide 34: Well-Diversified Commercial Business Portfolio
FlushingBank.com | NSQ: FFIC 34 Well-Diversified Commercial Business Portfolio ▪ Primarily in market lending ▪ Annual sales up to $250 million ▪ Lines of credit and term loans, including owner occupied mortgages ▪ Loans secured by business assets, including account receivables, inventory, equipment,
Slide 35: Interest Rate Hedges: Added exposure in 1Q25
FlushingBank.com | NSQ: FFIC 35 Interest Rate Hedges: Added exposure in 1Q25; Shifting more towards Neutral Swap Type Notional ($ Million) 2025 Maturities ($ Million) 2026 Maturities ($ Million) 2027 Maturities ($ Million) Annualized Net Interest Income1 ($ Million) Loans2 $793.8 $140.6 $314.9 $115.
Slide 36: Reconciliation of GAAP Earnings (Loss) and Core Earnings
FlushingBank.com | NSQ: FFIC 36 Reconciliation of GAAP Earnings (Loss) and Core Earnings Non-cash Fair Value Adjustments to GAAP Earnings The variance in GAAP (loss) earnings and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair val
Slide 37: Reconciliation of GAAP (Loss) Earnings to CORE Earnings - Quarters
FlushingBank.com | NSQ: FFIC 37 Reconciliation of GAAP (Loss) Earnings to CORE Earnings - Quarters 1 Core diluted earnings per common share may not foot due to rounding 2 Ratios are calculated on an annualized basis (Dollars in thousands, except per share data) GAAP (loss) income before income taxes
Slide 38: Reconciliation of GAAP Revenue and Pre-provision Pre-tax Net Revenue - Quarters
FlushingBank.com | NSQ: FFIC 38 Reconciliation of GAAP Revenue and Pre-provision Pre-tax Net Revenue - Quarters Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net inte
Slide 39: Reconciliation of GAAP to Core Net Interest Income and NIM - Quarters
FlushingBank.com | NSQ: FFIC 39 Reconciliation of GAAP to Core Net Interest Income and NIM - Quarters 1 Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees/income 2 Excludes purchase accounting averag
Slide 40: Calculation of Tangible Stockholders' Common Equity to Tangible Assets - Quarters
FlushingBank.com | NSQ: FFIC 40 Calculation of Tangible Stockholders’ Common Equity to Tangible Assets - Quarters (Dollars in thousands) Total Equity $ 702,851 $ 724,539 $ 666,891 $ 665,322 $ 669,827 Less: Goodwill — (17,636) (17,636) (17,636) (17,636) Core deposit intangibles (1,029) (1,123) (1,220
Slide 41: Reconciliation of GAAP (Loss) Earnings and Core Earnings - Years
FlushingBank.com | NSQ: FFIC 41 Reconciliation of GAAP (Loss) Earnings and Core Earnings - Years 1 Core diluted earnings per common share may not foot due to rounding 2 Ratios are calculated on an annualized basis December 31, December 31, December 31, December 31, (Dollars In thousands, except per
Slide 42: Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue - Years
FlushingBank.com | NSQ: FFIC 42 Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue - Years Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interes
Slide 43: Reconciliation of GAAP and Core Net Interest Income and NIM - Years
FlushingBank.com | NSQ: FFIC 43 Reconciliation of GAAP and Core Net Interest Income and NIM - Years 1 Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees/income. 2 Excludes purchase accounting average
Slide 44: Calculation of Tangible Stockholders' Common Equity to Tangible Assets - Years
FlushingBank.com | NSQ: FFIC 44 Calculation of Tangible Stockholders’ Common Equity to Tangible Assets - Years (Dollars in thousands) Total Equity $ 724,539 $ 669,837 $ 677,157 $ 679,628 $ 618,997 $ 579,672 Less: Goodwill (17,636) (17,636) (17,636) (17,636) (17,636) (16,127) Core deposit intangibles
Slide 45: Contact Details
Contact Details Susan K. Cullen SEVP, CFO & Treasurer scullen@flushingbank.com (718) 961-5400
Slide 46: Questions
FFICTQAUSEIING Financial Corporation