Slide 1: 4Q24 Earnings Conference Call
4Q24 Earnings Conference Call January 29, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 “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 d
Slide 3: 4Q24 Financial Highlights
▪ Completed $70 million gross common equity raise in December 2024 ▪ Accelerated NIM trajectory for 2025 through a balance sheet restructuring – Should result in 10-15 bps of Core NIM expansion in 1Q25 – Balance Sheet restructuring incurred $76 million of pre-tax losses or $1.74 per share, net of ta
Slide 4: Area of Focus: Increase NIM and Reduce Volatility
▪ Loan and CD repricing help NIM over time ▪ Focusing on noninterest bearing deposits ▪ Asset hedging strategies aided NIM ▪ Increased funding of back-to-back swaps ▪ Largely completed balance sheet restructuring 4 Area of Focus: Increase NIM and Reduce Volatility
Slide 5: 2024 Actions Expand GAAP and Core NIM QoQ
2024 Actions Expand GAAP and Core NIM QoQ 5 GAAP NIM FTE 2.29% 2.06% 2.05% 2.10% 2.39% See Appendix for definitions of Core NII FTE, Core NIM, and Core Loan Yields Net Interest Income and NIM ($ Millions) $46.6 $42.4 $42.5 $45.0 $48.2 2.31% 2.06% 2.03% 2.07% 2.25% 5.59% 5.45% 5.47% 5.65% 5.54% 3.10%
Slide 6: Average NIB Deposits Expand QoQ; Cost of Deposits Decline
$873.3 $834.2 $822.9 $845.5 $869.8 -100 10 30 50 70 90 1100 1300 4Q23 1Q24 2Q24 3Q24 4Q24 12.7% 11.8% 11.4% 11.3% 11.7% 26.8% 27.3% 28.0% 25.3% 27.2% 1.6% 1.5% 1.4% 1.4% 1.3% 23.6% 24.4% 23.8% 22.4% 22.6% 34.0% 34.0% 33.9% 38.6% 36.0% 1.3% 1.0% 1.3% 1.0% 1.2% $6,884 $7,081 $7,196 $7,464 $7,450 0 100
Slide 7: CDs Expected to Reprice Downward
7 CDs Expected to Reprice Downward ▪ CDs have a weighted average rate of 4.27%1 as of December 31, 2024 ▪ Current CD APYs are approximately 3.50- 4.25%; recent customer preferences are for short term CDs ▪ Approximately 87%1 of the CD portfolio will mature within one year – $792.0 million in 1Q25 at
Slide 8: Significant Loan Repricing to Occur Through 2027
$1,326 $747 $723 $998 6.76% 4.51% 4.39% 4.62% 6.65% 6.65% 6.66% 6.63% (1 50) 50 250 450 650 850 1,0 50 1,2 50 1,4 50 Floating 2025 2026 2027 Adjustable Loan Repricing Maturing Fixed Rate Total Loan Repricing Current Rate Repricing Rate ▪ Floating rate loans include any loans (including back-to-back
Slide 9: Summary of Restructuring Actions
Summary of Restructuring Actions 9 ▪ On December 16, 2024, closed a $70 million (gross) common equity raise to improve profitability and strengthen the balance sheet through a restructuring ▪ Sold $444.8 million of AFS securities (book value) with a weighted average yield of 1.98% and pre-tax loss o
Slide 10: Area of Focus: Maintain Credit Discipline
▪ Low risk profile ▪ Conservative loan underwriting ▪ History of low credit losses –Net charge-offs of 11 bps in 2024 compared to 16 bps in 2023 10 Area of Focus: Maintain Credit Discipline
Slide 11: Net Charge-offs Significantly Better Than the Industry; Strong DCR
-0.50% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2024 FFIC Industry 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 0.00% 20. 0% 40. 0% 60. 0% 80. 0% 10.00% 120.00% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2024 FFIC Industry ▪
Slide 12: Low Risk Credit Profile Results
0.54% 0.53% 0.61% 0.59% 0.57% 0.39% 0.42% 0.50% 0.49% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 4Q23 1Q24 2Q24 3Q24 4Q24 FFIC Peer Median* 12 Low Risk Credit Profile Results NPAs / Assets Criticized and Classified Loans / Gross Loans 30-89 Day Past Due /Total Loans ACL by Loa
Slide 13: Strong Credit Quality In Key Portfolios
13 Strong Credit Quality In Key Portfolios Portfolio Data Points Multifamily Investor CRE1 Office CRE NPLs/Loans: 44 bps 0 bps 260 bps3 Criticized and Classified Loans/Loans: 102 bps 0 bps 260 bps3 Weighted Average DCR2 : 1.8x 1.8x 1.9x Portfolio Size: $2.5 billion $1.7 billion $242 million Average
Slide 14: Low Risk Multifamily Loan Portfolio
0.60% 14.85% 4.27% 0.61% 0.42% 1.70% 0.38% 30.67% 0.98% 2.27% FFIC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Criticized and Classified Multifamily Loans / Total Multifamily Loans 14 Low Risk Multifamily Loan Portfolio • We employ a model to determine loan risk ratings for real e
Slide 15: Area of Focus: Preserve Strong Liquidity and Capital
15 Area of Focus: Preserve Strong Liquidity and Capital ▪Maintain ample liquidity with $3.6 billion of undrawn lines and resources as of December 31, 2024 ▪ Low insured and uncollateralized deposits ▪ Regulatory capital ratios are well capitalized – Tangible common equity to tangible asset ratio imp
Slide 16: Strong Capital Ratios
Strong Capital Ratios 16 8.04% 10.13% 10.82% 14.23% 7.82% $21.53 $20.97 15 16 17 18 19 20 21 22 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Tier 1 Leverage Ratio Common Equity Tier 1 Risk-based Capital Ratio Tier 1 Risk-based Capital Ratio Total Risk-Based Capital Ratio Tangible Common
Slide 17: Strong Asian Banking Market Focus
Strong Asian Banking Market Focus 18% of Total Deposits $40B Deposit Market Potential (~3% Market Share1 ) 5.8% 1 Year Growth in 2024 vs (1.5)%1 for the Comparable Asian Markets Asian Communities – Total Loans $749 million and Deposits $1.3 billion Multilingual Branch Staff Serves Diverse Customer B
Slide 18: Key Community Events: Street Fairs, BID, and Ganesh Utsav
18 Key Community Events: Street Fairs, BID, and Ganesh Utsav Bellerose
Slide 19: Operating Environment Is Improving
19 Operating Environment Is Improving ▪ The 3-month to 5-year spread has turned positive, which should benefit NIM over time ▪ Opportunities to continue to lower deposit rates ▪ Loan repricing continued to be favorable ▪ Focused on remixing the balance sheet ▪ New business initiatives for 2025 –Dema
Slide 20: Outlook
▪ Balance Sheet – Expect slight increase in loans but stable total assets – Focused on improving asset and funding mix; expect normal historical funding patterns ▪ Net Interest Income – Balance sheet restructuring estimated to have a 10-15 bps positive impact to 1Q25 Core NIM – $792 million of retai
Slide 21: Key Takeaways
21 Key Takeaways ▪ 2025 Areas of Focus – Preserve Strong Liquidity and Capital • $3.6 billion of undrawn lines and resources at of December 31, 2024 • Uninsured and uncollateralized deposits were 17% of total deposits • Average total deposits increased 8.2% YoY but declined 0.2% QoQ • Tangible Commo
Slide 22: Appendix
Appendix TIGFLUSHING 22
Slide 23: Digital Banking Usage Continues to Increase
Digital Banking Usage Continues to Increase 23 Technology Enhancements Remain a Priority to Grow Customer Base and Increase Engagement 9% Increase in Monthly Mobile Deposit Active Users December 2024 YoY Growth ~14,600 Users with Active Online Banking Status December 2024 15% Digital Banking Enrollm
Slide 24: 4Q24 GAAP to Core Reconciliation
▪ Net Interest Income: $3.0 MM swap termination gain, fair value adjustments, and purchase accounting accretion ▪ Noninterest Income (Loss): $72.6 MM loss on sale of securities from restructuring, $3.8 MM write-down on loans move to held for sale, life insurance proceeds, and fair value adjustments
Slide 25: Reported and Core Results
Reported Results (Loss) Earnings per Share ($1.05) $0.96 $2.50 $2.59 $1.18 $1.44 ROAA (0.35) % 0.34 % 0.93 % 1.00 % 0.48 % 0.59 % ROAE (4.67) 4.25 11.44 12.60 5.98 7.35 NIM FTE 2.15 2.24 3.11 3.24 2.85 2.47 Core1 Results EPS $0.73 $0.83 $2.49 $2.81 $1.70 $1.65 ROAA 0.24 % 0.29 % 0.92 % 1.09 % 0.68 %
Slide 26: Year Track Record of Steady Growth
29 Year Track Record of Steady Growth Core EPS ($) Dividends per Share ($) Tangible Book Value per Share ($) Assets ($B) Total Gross Loans ($B) Total Deposits ($B) $- $0.88 1995 2000 2005 2010 2015 2020 2023 2024 $- $0.73 1995 2000 2005 2010 2015 2020 2023 2024 $0.6 $7.2 1995 2000 2005 2010 2015 202
Slide 27: Approach to Real Estate Lending: Low Leverage & Shared Philosophy
Approach to Real Estate Lending: Low Leverage & Shared Philosophy 27 Our Conservative Lending Profile Has Served Us Well Over Many Cycles ▪ 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, me
Slide 28: Loans Secured by Real Estate Have an Average LTV of <35%
Loans Secured by Real Estate Have an Average LTV of <35% Manhattan Office Buildings are Approximately 0.5% of Gross Loans Data as of December 31, 2024 37% 11% 10% 8 % 7 % 5 % 5 % 4 % 4 % 2 %2 %1 %1 % 1 % 1 %1 % Multifamily: 37.0% Owner Occupied CRE: 11.0% Non Real Estate: 10.0% One-to-four family -
Slide 29: 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 Income (NOI) at origination includes forecasted increases in expenses and potential
Slide 30: Multifamily: Manageable Repricing Risk
Actual Repricing 30 Multifamily: Manageable Repricing Risk ▪ At year end 2023, there were $302 million of multifamily loans schedule to reprice or mature ~199 bps higher based on the December 31, 2023 index – Approximately 81% of the loans repriced and remained with the Bank – These loans repriced 2
Slide 31: 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 $195.8 million3 LTV of loans with a DCR of 1.0-1.2x 49% Amount of loans with a DCR <1.0x $82.6 million3 LTV of loans with a DCR <1.0x 43% Of the loans with a DCR <1.2x: • None have an LTV >70%
Slide 32: Multifamily: Minimal Interest Only; High Quality Performance
32 Multifamily: Minimal Interest Only; High Quality Performance 1 As of June 30, 2024 2 Excludes co-ops ▪ Interest only loans are typically only offered to relationship customers who have a prior history with the Bank ▪ A client requests an interest only loan when cash flows early in the project are
Slide 33: Multifamily: Rent Regulated Portfolio
Key Data Points1 33 Multifamily: Rent Regulated Portfolio – Granular and Low Risk Portfolio Data Points1 Portfolio Size: $1.6 billion Average Loan Size: $1.4 million Current Weighted Average Coupon: 4.82% Weighted Average LTV: 48% % of Loans with LTV >75% 0.2% Weighted Average DCR: 1.8x2 Average Sea
Slide 34: 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 Income (NOI) at origination includes forecasted increases in expenses and potential
Slide 35: Geographically Diverse Multifamily and CRE Portfolios
16% 29% 22% 17% 16% Bronx Kings Manhattan Queens Other 8% 18% 18% 19% 5% 6% 9% 3% 14% Bronx Kings Manhattan Queens Other NY Nassau Suffolk NJ CT/Other Multifamily Geography Geographically Diverse Multifamily and CRE Portfolios 35 Underwrite Real Estate Loans with a Cap Rates over 6% in 2024 (5%+ His
Slide 36: Well-Diversified Commercial Business Portfolio
36 Well-Diversified Commercial Business Portfolio Commercial Business ▪ Primarily in market lending ▪ Annual sales up to $250 million ▪ Lines of credit and term loans, including owner occupied mortgages ▪ Loans secured by business assets, including account receivables, inventory, equipment, and real
Slide 37: Swap Maturities: >50% of Interest Rate Hedges Mature through 2026
37 Swap Maturities: >50% of Interest Rate Hedges Mature through 2026 Swap Type Notional ($ Million) 2025 Maturities ($ Million) 2026 Maturities ($ Million) 2027 Maturities ($ Million) Annualized Net Interest Income1 ($ Million) Loans2 $695.6 $140.7 $315.4 $115.0 $8.9 Funding2 $875.8 $225.0 $180.0 $5
Slide 38: Reconciliation of GAAP (Loss) Earnings and Core Earnings
Reconciliation of GAAP (Loss) Earnings and Core Earnings 38 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 value adjustments relate primari
Slide 39: Reconciliation of GAAP (Loss) Earnings to Core Earnings - Quarters
39 1 Core diluted earnings per common share may not foot due to rounding 2 Ratios are calculated on an annualized basis Reconciliation of GAAP (Loss) Earnings to CORE Earnings - Quarters (Dollars in thousands, except per share data) GAAP (loss) income before income taxes $ (71,857) $ 11,457 $ 7,136
Slide 40: Reconciliation of GAAP Revenue and Pre-provision Pre-tax Net Revenue - Quarters
40 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 interest income and core noninter
Slide 41: Reconciliation of GAAP to Core Net Interest Income and NIM - Quarters
41 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 balances for all periods presented 3 Excludes interest income from loans held for sale. Reconcil
Slide 42: Tangible Common Equity to Tangible Assets - Quarters
42 Calculation of Tangible Stockholders’ Common Equity to Tangible Assets - Quarters (Dollars in thousands) Total Equity $ 724,539 $ 666,891 $ 665,322 $ 669,827 $ 669,837 Less: Goodwill (17,636) (17,636) (17,636) (17,636) (17,636) Core deposit intangibles (1,123) (1,220) (1,322) (1,428) (1,537) Tang
Slide 43: Reconciliation of GAAP (Loss) Earnings and Core Earnings - Years
43 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 share data) 2021 2020 2019 20
Slide 44: Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue - Years
44 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 interest income and core noninterest
Slide 45: Reconciliation of GAAP and Core Net Interest Income and NIM - Years
45 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 balances for the years ended
Slide 46: Tangible Common Equity to Tangible Assets - Years
46 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 (1,123) (1,537) (2,017) (2,5
Slide 47: Contact Details
47 Contact Details Susan K. Cullen SEVP, CFO & Treasurer Phone: (718) 961-5400 Email: scullen@flushingbank.com Al Savastano, CFA Director of Investor Relations Phone: (516) 820-1146 Email: asavastano@flushingbank.com
Slide 48: [gare LUSHING
[gare LUSHING Financia 1 Corvoration