Flushing Financial Corporation · NASDAQ:FFIC
Flushing Financial — IPO Roadshow (December 2024)
30 slides from Flushing Financial's IPO roadshow presentation, Dec 12, 2024
Slide 1: Follow-on Offering Investor Presentation December 2024
Follow - on Offering Investor Presentation December 2024
Slide 2: Forward-Looking Statements
Forward - Looking Statements 2 This presentation contains a number of forward - looking statements within the meaning of the federal securities laws . These statements may be identified by use of words such as “annualized,” “anticipate,” “anticipated,” “believe,” “continue,” “could,” “estimate,” “ex
Slide 3: Additional Information
Additional Information 3 No Offer or Solicitation This presentation is neither an offer to sell nor a solicitation of an offer to purchase any securities of the Company . There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to r
Slide 4: Offering Summary
4 Offering Summary Issuer Flushing Financial Corporation Exchange / Ticker NASDAQ / FFIC Base Offering Size Approximately $70 million (100% Primary) Over - allotment Option 15% of base deal (100% Primary) Use of Proceeds We intend to use the net proceeds of this offering for general corporate purpos
Slide 5: Company Overview
5 Branch Footprint $9.3B Assets $6.8B Net Loans $7.6B Deposits 1 $667M Total Equity Company Overview Flushing Financial Corporation (NASDAQ: FFIC) Uniondale, NY Headquarters: 1929 Founded: 1995 IPO: 28 Total Branches: $17.19 Stock Price 2 $ 500 M Market Cap 2 0.77x Price / TBV 2 5 .1% Dividend Yield
Slide 6: Today's Presenters
6 Today’s Presenters ▪ Joined the Company in 2001 as Executive Vice President and Chief Operating Officer of the Company and currently serves as President and Chief Executive Officer of the Company and the Bank since July 2005 ▪ Prior to joining the Company, held a variety of positions within the Ba
Slide 7: Highly Seasoned and Experienced Management Team
7 Highly Seasoned and Experienced Management Team All Senior Executives Have Over 25 Years of Experience in Banking Aligned Investor Interest with Insider Ownership of Approximately 6.25% ² John Buran President and CEO FFIC: 2 4 years Industry: 4 7 years Allen Brewer SEVP, Chief Information Officer
Slide 8: Investment Highlights
8 Investment Highlights Long history of exceptional asset quality Established and growing Asian Banking niche Compelling valuation Leading community bank in the greater New York City markets Opportunity to accelerate performance improvement through a potential balance sheet restructuring Improving p
Slide 9: Highly Attractive Market
9 Highly Attractive Market Source: S&P Capital IQ Pro; Data as of 6/30/2024 1 Greater Long Island defined as Nassau, Queens, Suffolk, and Kings counties 2 Median owner occupied home value is weighted by population 3 Median household income is weighted by FFIC’s deposits in each county in Greater Lon
Slide 10: Market Disruption Provides Opportunity for Growth
Buyer Name Target Name Completion Date Greater Long Island 2 Total Deposits ($B) Pending $3.3 Private Equity Mar-24 $32.1 Mar-23 $18.8 Jan-22 $8.1 10 Market Disruption Provides Opportunity for Growth Source: S&P Capital IQ Pro and FDIC; Data as of 9/30/2024 1 Includes select bank transactions since
Slide 11: Corporate Focus and Strategy
11 Corporate Focus and Strategy Financial data as of 9/30/2024 1 Peers include major exchange - traded banks in NJ, NY, and PA with total assets between $5B and $15B; NBT Bancorp Inc. excluded du e to pending transaction expecting to result in assets above $15B; Excludes merger targets and mutual ho
Slide 12: Strong Asian Banking Market Focus
Strong Asian Banking Market Focus 1 As of 6/30/2024; Latest FDIC Data 1 Asian Communities – Total Loans $744 million and Deposits $1.3 billion 2 Multilingual Branch Staff Serves Diverse Customer Base in NYC Metro Area 3 Growth Aided by the Asian Advisory Board 4 Sponsorships of Cultural Activities S
Slide 13: Deposit Portfolio Overview
$1,438 $1,138 $946 $1,526 $2,311 $2,876 $191 $168 $156 $144 $109 $100 $1,592 $1,682 $2,342 $2,100 $1,726 $1,659 $1,366 $2,323 $1,921 $1,746 $1,771 $2,003 $435 $779 $968 $921 $848 $861 $44 $46 $52 $48 $50 $73 $5,066 $6,136 $6,385 $6,485 $6,815 $7,572 2019 2020 2021 2022 2023 3Q24 Certificate of Depos
Slide 14: CDs Expected to Reprice Favorably
4.17% 4.06% 4.96% ▪ CDs have a weighted average rate of 4.64% 1 as of September 30, 2024 ▪ Current CD APYs are approximately 3.50 - 4.50% for new accounts ▪ Approximately 72% 1 of the CD portfolio will mature within one year − $647.2 million in 4Q24 at 4.96% 1 − $420.8 million in 1Q25 at 4.70% − $16
Slide 15: Loan Portfolio Overview
39% 11% 10% 7% 6% 5% 4% 4% 4% $6.8B Total Portfolio Loan Portfolio Overview 15 Data as of 9/30/2024 1 Includes $1.6M of prepayment penalty along with net reversals and recoveries from nonaccrual and delinquent loans for the qua rt er ended 9/30/2024 2 LTV is based on the outstanding principal balanc
Slide 16: Overview of Multifamily and Rent Regulated Portfolio
$1.2M Average Loan Size 5.03% Current Weighted Average Coupon $96M Loans repricing in 4Q24 3 $358M Loans repricing in 2025 3 44% Weighted Average LTV 0.10% Loans with LTV above 75% 1.9x Weighted Average DCR 0.33% NPLs / Loans 0.52% 30 - 89 Days Past Due / Loans 55 bps Criticized and Classified Loans
Slide 17: Significant Short-Term Loan Repricing
Significant Short - Term Loan Repricing 17 1 Loans repricing include floating rate loans, adjustable loans repricing, and maturing fixed rate loans 2 Currently floating loans excludes $500M of interest rate hedges 3 Incremental repricing spread assumes index values as of 9/30/2024 ▪ Floating rate lo
Slide 18: Asset Quality Overview
Asset Quality Overview Peers include major exchange - traded banks in NJ, NY, and PA with total assets between $5B and $15B; NBT Bancorp Inc. excluded du e to pending transaction expecting to result in assets above $15B; Excludes merger targets and mutual holding companies; Data presented on a media
Slide 19: Securities Portfolio Overview
19 Securities Portfolio Overview Financial data as of 9/30/2024 1 Excludes FHLB stock; HTM securities balance shown net of allowance for credit losses 2 Excludes portfolio layer method basis adjustments related to available for sale securities hedged in a closed portfolio 3 Shown before allowance fo
Slide 20: Illustrative Transaction Assumptions
1 Actual amounts and terms may vary depending on market conditions and execution 2 Based on current market rates, we estimate the new securities would have an estimated aggregate yield of approximately 5.50%, b ut the actual yield will depend on market conditions at the time of purchase 20 Illustrat
Slide 21: Potential Repositioning Accelerates Profitability
Note: Stand - alone and pro forma metrics reflect annualized data for 3Q24; pro forma metrics reflect common equity raise price of $17.19 per share which reflects closing price as of December 6 2024, gross spread of 5.25% and additional one - time costs of $150 thousand 1 Pro forma net income reflec
Slide 22: And Strengthens The Balance Sheet
1 Refer to Non - GAAP Reconciliation 2 Pro forma bank - level CRE Concentration excludes approximately $20 million of net proceeds from the common equity raise that are retained at the holding company for general corporate purposes Note: Reflects consolidated regulatory capital ratios unless otherwi
Slide 23: Compelling Valuation Relative to Peers
0.77x 0.81x 0.85x 0.98x 1.03x 1.04x 1.05x 1.13x 1.14x 1.14x 1.18x 1.33x 1.42x 1.51x 1.61x 1.64x 1.77x 1.86x 1.91x Peer Median: 1.16x FFIC KRNY NFBK FISI TRST MCB OCFC CNOB PGC CCNE MPB UVSP DCOM PFIS AMAL STBA TMP FCF ORRF Compelling Valuation Relative to Peers Market data as of 12/6/2024; Financial
Slide 24: Appendix
Appendix [Ea@FLUSHING 24
Slide 25: Ample Liquidity
25 Ample Liquidity x Significant liquidity is available to meet immediate operating needs of the business x $3.9B of available liquidity provides additional support to granular deposit base x Approximately 340% coverage of $1.1B uninsured and uncollateralized deposit balances with total liquidity so
Slide 26: Pro Forma Adjustments
1 Assumes approximately $400 million - $500 million of AFS securities at amortized cost are sold with a weighted average yield of approximately 2.05% with the approximate mid - point used in calculations 2 Assumes approximately $100 million of CRE loans are sold with a weighted average yield of appr
Slide 27: Pro Forma Adjustments (Cont.)
27 Pro Forma Adjustments (Cont.) 1 Assumes approximately $400 million - $500 million of AFS securities at amortized cost are sold with a weighted average yield of approximately 2.05% with the approximate mid - point used in calculations 2 Assumes approximately $100 million of CRE loans are sold with
Slide 28: Non-GAAP Reconciliation: Tangible Book Value Per Share
Note: Pro forma tangible book value per share at September 30, 2024 reflects common equity raise price of $17.19 per share which reflects closing price as of December 6 2024, gross spread of 5.25% and additional one - time costs of $150 thousand 1 Represents estimated incremental fair value adjustme
Slide 29: Tangible Common Equity Ratio Reconciliation
Tangible Common Equity Ratio Reconciliation Reported Pro Forma $ in millions 9/30/2024 9/30/2024 Total Equity (GAAP) $666.9 $717.8 Less: Goodwill and Other Intangibles (GAAP) $18.9 $18.9 Tangible Stockholders' Common Equity (Non-GAAP) $648.0 $698.9 Total Assets (GAAP) $9,280.9 $9,181.8 Less: Goodwil
Slide 30: Flushing Financial Corporation
[gate FLUSHING Financia 1 Corporation