Flushing Financial Corporation · NASDAQ:FFIC

Flushing Financial — KBW Investor Presentation (February 2021)

42 slides from Flushing Financial's conference presentation, Feb 18, 2021

1. Slide 1: KBW Investor Presentation February 18, 2021

   KBW Investor Presentation February 18, 2021 contact: susan.cullen@flushingbank.com | phone: 718.961.5400 | website: www.flushingbank.com ​ ​

2. Slide 2: 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 specific activities or investments and other statements that are not descriptions of historical forward-look

3. Slide 3: Flushing Financial: Leading NYC Area Community Bank

    Leading community bank in greater New York City area – – – $8.0B assets, $6.7B loans, $6.1B deposits Asian Bank Niche with over $650MM of loans and greater than $900MM of deposits Online Banking Division – $225MM of deposits  Diversified loan portfolio –Commercial Loans – 22%, Multi-family – 38%,

4. Slide 4: 4Q20 Key Statistics

   4Q20 Key Statistics Balance Sheet Footprint Deposits primarily from 25 branches in multi-cultural neighborhoods and our online division, consisting of iGObanking.com® and BankPurely® Performance Strong Franchise and Diverse Business Mix Leading community bank in greater New York City area Diversifie

5. Slide 5: Asian Bank within Flushing Bank

    Loans in the Asian communities total over $650MM with deposits exceeding $900MM  Multilingual branch staff serves our diverse customer base in New York City metro area  Growth aided by the Asian Advisory Board  Sponsorships of cultural activities support new and existing opportunities 5 Asian B

6. Slide 6: Management team

   1 Previously President and COO of Empire Bancorp and Empire National Bank from its inception in February 2008 until the sale to Flushing in October 2020. 6 Tom Buonaiuto SEVP, Chief of Staff, Deposit Channel Executive FFIC: 12 years1 Industry: 29 years Allen Brewer SEVP, Chief Information Officer FF

7. Slide 7: Timeline Highlights

   Timeline Highlights 1929 1995 2006 2008 2014 2016 2017 2018 2019 2020 FoundedFFIC IPO Launched Business Banking Launched Government Banking Introduced Business Development and Manhattan Business Banking Team Launched Universal Banker Model Technology Launched Niche Banking and Deposit Gathering Team

8. Slide 8: Publicly traded banks in Flushing's markets 1995-2020

   1 Through 12/31/2020. 8 2020 - 10 Total New York Community Valley National ConnectOne Bancorp Bridge Bancorp Peapack-Gladstone Financial First of Long Island Unity Bancorp Carver Bancorp Brunswick Bancorp Flushing Financial 2015 - 13 Total New York Community Valley National Astoria ConnectOne Bancor

9. Slide 9: Proven Track Record of Steady Growth

   Assets ($B) $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 $8.0 $0.7 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Tangible Book Value Per Share ($) $25 $19.45 $20 $15 $10 $4.86 $5 $0 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07'08 '09 '10 '11 '12 '13

10. Slide 10: Proven Track Record of Steady Growth

    Core EPS ($) $2.50 $2.00 $1.70 $1.50 $1.00 $0.50 $0.25 $0.00 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Dividends Per Share ($) $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.84 $0.00 '95'96 '97 '98 '99 '00 '01 '02 '03 '04'

11. Slide 11: Proven Track Record of Steady Growth

    Total Gross Loans ($B) $6.7 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $0.3 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Total Deposits ($B) $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $6.1 1 $0.6 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

12. Slide 12: Continued Strong Execution in 4Q20

     Strong 4Q20: Core EPS up 4% QoQ, Record Net –Core NIM expansion of 8 bps QoQ Interest Income More opportunities to reprice deposits Benefits from balance sheet restructuring    Cautiously optimistic on loan growth –Loan pipeline of $354.6MM, up 9.3% year over year –Loan growth excluding Empire

13. Slide 13: Strategic Objectives

    13 #1 Manage cost of funds and continue to improve funding mix #2 Resume historical loan growth while achieving appropriate risk adjusted returns #3 Enhance core earnings power by improving scalability and efficiency #4 Manage credit risk #5 Remain well capitalized Strategic Objectives ​ ​

14. Slide 14: Deposits Rise While Costs Fall

    Increasing Deposits While Lowering Cost ($MM) $5,163 $5,013 $4,735 $4,447 $4,110 2016 2017 2018 2019 2020 Non-interest Bearing NOW Accounts Savings Money Market CDs Mortgage Escrow Total Average Deposits Deposit Cost Note: Empire Bancorp acquisition added total deposits of $854MM from deal close on

15. Slide 15: Continuing to Improve Funding Mix

    $3.9B $6.9B 4Q10 Avg 4Q20 Avg 11% 10% 37% 20% 57% 28% 10% 22% 1 CDs & Borrowings Money Market Now Non-interest Bearing Funding Costs: 0.77% Savings Funding Costs: 2.19% Effective Fed Funds: 0.19% Effective Fed Funds: 0.09% Reduced Reliance on CDs & Borrowings; Increased Non-interest Bearing 1 Includ

16. Slide 16: Current deposit costs lower than maturing CD rates

     Current deposit costs of replacement products significantly lower than maturing CD rates  Yields rolling off exceed current market deposit costs 1.59% 0.47% CDs2 Money2 Market Gov't Deposits NOW 1Q21 2Q21 3Q21 4Q21 4Q20 Avg. Cost of Deposits1 Retail CD Coupon Rate Deposits 1 Excluding Escrow. 2 R

17. Slide 17: Digital Banking Grows

    Mobile Deposit Monthly Active Users Mobile Deposit Items Processed 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 3,000 2,500 2,000 1,500 1,000 500 0 Active Users Items Processed Mobile Deposit Dollar Volume Processed Active Online Banking Users $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,50

18. Slide 18: Loan Growth Improves

    Period End Loan Growth And Composition ($MM) $6,702 $5,536 $5,160 $4,819 2016 2017 2018 2019 2020 Multi-family Commercial Real Estate Construction 1-4 Family Mixed Use Business Banking Total Loans Core Loan Yields Note: Empire Bancorp acquisition added total loans of $685MM in 2020. 18 $5,757 4.39%

19. Slide 19: NIM Expansion From Lower Deposit Costs

    NIM Expansion From Lower Deposit Costs 4.39% 4.25% 4.07% 4.07% 4.07% 1 Core Loan Yields 1 Core NIM 2.83% 2.81% 2.80% 2.59% 2.40% 1.76% 1.36% Deposit Costs 0.82% 0.91% Core NII1 ($MM) 0.81% $159.4 $166.1 $160.3 $157.7 $192.3 2016 2017 2018 2019 2020 1 Core NII, Loan Yields and NIM exclude prepayment

20. Slide 20: 20% Earnings Accretion in 2021 From Empire Expected

     Closed the Empire transaction on October 31, 2020 – – This added $982MM of assets, $685MM of loans and $854MM of deposits Recorded goodwill of $1.5MM, CDI of $3.3MM and approximately 2.0% loan portfolio purchase accounting mark Systems conversion completed in November Targeted costs savings are $7

21. Slide 21: Little Manhattan Multi-family Exposure; Well Secured

    Multi-family Geographic Distribution    $2.5B of multi-family loans Average loan size of $1.1MM Average monthly rent in our portfolio is $1,245 compared to market of $2,7151 <$20MM of multi-family loans have an LTV of ≥75%, weighted average is <34% ~$280MM of multi-family loans have a DCR <1.25x,

22. Slide 22: CRE Has Limited Manhattan Exposure; Significant Equity

    Non-Owner Occupied Commercial Real Estate Geographic Distribution  $1.7B of Non-owner Occupied Commercial Real Estate loans Average loan size of $2.0MM Borrowers have >56% equity and <$23MM have an LTV of ≥75% ~$180MM of loans have a DCR<1.25x, weighted average about 1.8x1 Largest exposures are Ret

23. Slide 23: Consistently Strong Credit Quality

    Low NCOs and Past Dues with Strong Reserves Strong Coverage with Few Problem Credits 1.60% 1.40% 250.0% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% -0.10% 200.0% 1.20% 1.00% 0.80% 150.0% 100.0% 0.60% 0.40% 0.20% 50.0% 2016 2017 2018 2019 2020 0.00% 0.0% 2016 2017 2018 2019 2020 Criti

24. Slide 24: Low Historical Net Charge-offs

    3.30% 2.80% 2.30% 1.80% 1.30% 0.80% % 0.30% % -0.20% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2 2018 2019 2020 Industry 1 FFIC   Over two decades and multiple credit cycles, Flushing has a history of better than industry credit Since the Great Reces

25. Slide 25: Increased Coverage Ratio

    Loan Loss Reserve/NPL 214.3% 164.1% 128.9% 112.2% 103.8% 82.6% 73.4% 64.9% 34.6% 25.8% 24.7% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 25 Strategic Objective #4: Manage credit risk Increased Coverage Ratio ​ ​

26. Slide 26: NPAs Remain Low

    NPAs Remain Low Criticized & Classified Loans Rise Mostly From Empire Acquisition $21.9 $72.6 1 $71.7 $21.1 0.46% $62.7 $18.1 1.51% $16.3 $53.1 0.35% $13.5 1.21% 0.31% $38.3 0.29% 1.07% 0.96% 0.24% 0.67% 2016 2017 2018 2019 NPAs ($MM) 2020 2016 2017 2018 2019 2020 NPAs/Loans&REO Criticized & Classif

27. Slide 27: Forbearance Loans Decline 57% from 3Q20

    Forbearance Trend from Peak to Remaining on Deferral $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $-Peak Deferrals 5/31/20 9/30/2020 12/31/2020 25.3% 14.2% 5.4% % of Total Loan Portfolio 1 Represents dollar amount granted at modification. 27 ($MM)  Loans granted forbearance have declined from a

28. Slide 28: Multi-family NOI analysis under rent collection scenarios

      Rental units are largely rent regulated Average unit rents in our portfolio are $1,245 per month or $14,940 per year Net Operating Income is generally enough to cover 2x principal and interest payments Our typical borrower is collecting about 80% of rents as tenants are dealing with job loss and

29. Slide 29: Forbearance, Modifications and Interest-only Payments vs Peers

    Forbearance , Modifications, and Interest-only Payments to Total Loans  Forbearance terms and classifications are different among the banks –Some exclude modifications to interest-only payments 40% of our forbearance include interest-only payments Real estate forbearances are expected to complete r

30. Slide 30: Book Value of $20.11, Build Capital Ratios in 2021

    11.80% 11.60% 10.95% 10.98% 9.87% 9.02% 9.00% 8.74% 8.73% 8.38% $17.95 $18.63 $19.64 $20.59 $20.11 2016 2017 Book Value Per Share 2018 CET1 Ratio 2019 Leverage Ratio 2020 30 Strategic Objective #5: Remain well capitalized Book Value of $20.11, Build Capital Ratios in 2021 ​ ​

31. Slide 31: Tangible Book Value of $19.45 With 4.2% Dividend Yield

    8.24% 8.22% 8.05% 7.83% 7.52% $17.40 $18.08 $19.07 $20.02 $19.45 2016 2017 Tangible Book Value Per Share 2018 2019 Tangible Common Equity/Tangible Assets 2020 Tangible Common Equity/Tangible Assets Approaching 8% by YE 2021 31 1 Calculated using 2/11/21 closing price of $19.91 Strategic Objective #5

32. Slide 32: Outlook

     We are cautiously optimistic about the operating environment –Steeper yield curve –Fiscal stimulus and vaccine roll out should have a positive impact on the economy and borrowers We are watching –COVID cases near term and what that might mean for the local economy –Potential tax policy and regulat

33. Slide 33: Appendix

    [gyre FLUSHING cial Corporation Appendix

34. Slide 34: Real estate loan portfolio

    to 30 years and comprise 79% of the portfolio to 30 years and comprise 79% of the portfolio 34 Loans secured by real estate have an LTV of 38% as of December 31, 2020 3% 2% 5% 7% $4.3B 8%Total Portfolio 59% 12%  Multi-Family: 59% General Commercial: 12%  CRE – Shopping Center: 7% CRE – Strip Mal

35. Slide 35: Commercial Business Exposures

    Commercial Business 11% 18%  Businesses in the New York City metro area with sales of up to $250MM Offering lines of credit, term loans including owner occupied mortgages Loans are secured by business assets, generally require personal guarantees Origination range of $100,000 to $10MM ARMs with adj

36. Slide 36: 4Q20 Highlights

    36 Core diluted EPS of $0.58, up 41.5%,GAAP diluted EPS totaled $0.11 compared to $0.45 a year ago Core ROA and ROE were 0.92% and 11.67%, respectively, and improved year over year Core NIM improved 8 bps during 4Q20 to 2.97%; funding costs declined more than asset yields Net period end loans, e

37. Slide 37: Non-cash Fair Value Adjustments to GAAP Earnings

    Non-cash Fair Value Adjustments to GAAP Earnings The variance in GAAP and core earnings is primarily due to the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to swaps designated to protect against rising rates and borrowing carried

38. Slide 38: GAAP to core income reconciliation

    Three Months Ended Year Ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 GAAP income before income taxes $ 3,878 $ 18,820 $ 16,888 $ 45,182 $ 53,331 Day 1, Provision for Credit Losses - Empire transaction Net (gain) loss from fair value adjustments Net

39. Slide 39: Core net interest income and NIM reconciliation

    Nil NIM Three Months Ended Year Ended December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 GAAP net interest income Net (gain) loss from fair value adjustments on qualifying hedges Net am011izat ion of pmchase accounting adj ustments Core net interes t income 55

40. Slide 40: Calculation of Tangible Stockholders' Common Equity to Tangible Assets

    December 31, 2020 September 30, 2020 December 31, 2019 (Dollars in thousands) Total Equity Less: Goodwill Core deposit Intangibles Intangible deferred tax liabilities Tangible Stockholders' Common Equity $ 618,997 $ 586,406 $ 579,672 (17,636) (3,172) 287 (16,127) — 292 (16,127) — 292 $ 598,476 $ 570

41. Slide 41: Contact Details

    41 Susan Cullen SEVP, CFO & Treasurer (516) 209-3622 susan.cullen@flushingbank.com NASDAQ: FFIC Contact Details | Flushing Financial Corporation ​ ​

42. Slide 42: Flushing Financial Corporation FFIC

    FLUSHING Financial Corporation FFIC ​

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