Flushing Financial Corporation · NASDAQ:FFIC
Flushing Financial — Investor Presentation (November 2022)
29 slides from Flushing Financial's investor presentation, Nov 2, 2022
Slide 1: Investor Meetings November 2022
Investor Meetings November 2022
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
Slide 3: Flushing Savings 90+ Year History
Flushing Savings 90+ Year History Celebrating 20 years as Public Company in 2015 Flushing Savings Bank Opened on June 1, 1929 3
Slide 4: Track Record of Steady Growth
4 26 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) 1 $ - $0.84 $0.88 1995 2000 2005 2010 2015 2020 2021 9M22 $ - $2.81 $1.92 1995 2000 2005 2010 2015 2020 2021 9M22 $0.6 $6.1 1995 2000
Slide 5: Flushing Financial Snapshot
5 Flushing Financial Snapshot (NASDAQ: FFIC) Key Messages Balance Sheet Assets $ 8.6B Loans, net $ 6.9B Deposits $ 6.1B 1 Equity $ 0.7B Performance GAAP/Core ROAA 1.11%/0.90% 2 GAAP/Core ROAE 13.91%/11.24% 2 GAAP/Core Exp/Avg Assets 1.69%/1.68% 2 Tangible Book Value $ 21.81 Dividend Yield 4.3% 3 3 Q
Slide 6: Experienced Executive Leadership Team
6 Experienced Executive Leadership Team Executive Compensation and Insider Stock Ownership (6.1% 2 ) Aligned with Shareholder Interests John Buran President and CEO Maria Grasso SEVP, COO, Corporate Secretary Susan Cullen SEVP, CFO, Treasurer Francis Korzekwinski SEVP, Chief of Real Estate Michael B
Slide 7: Delivering Rewarding Relationships
Delivering Rewarding Relationships 7 Building Relationships Across All Stakeholders
Slide 8: Long-standing History of Giving Back to the Communities
Long - standing History of Giving Back to the Communities Our Asian Bank Supports Business Growth 8
Slide 9: Strong Asian Banking Market Focus
9 Strong Asian Banking Market Focus 16% of Total Deposits 1 $ 36B Deposit Market Potential (~3% Market Share 2 ) 7.6% FFIC 5 Year Asian Market CAGR vs 3.7% 2 for the Comparable Asian Markets Asian Communities – Total Loans $802MM and Deposits $1B Multilingual Branch Staff Serves Diverse Customer Bas
Slide 10: Well-positioned to Benefit from Industry Merger Disruption
10 Well - positioned to Benefit from Industry Merger Disruption • 10 bank mergers have been announced or closed involving Long Island area banks 2 • Out of the $ 363B of total industry deposits in Nassau, Queens, Kings, and Suffolk Counties, $ 85B or 23% involve a merger participant 3 • 93% of FFIC’
Slide 11: Multifamily Lending – Rent Stabilized, Niche Player
Multifamily Lending – Rent Stabilized, Niche Player Our Conservative Lending Standards Lead to Minimal Losses Generally Not Like This Our Lending Looks More Like This 11
Slide 12: Examples of Multifamily Buildings in the Portfolio
Examples of Multifamily Buildings in the Portfolio 12 Low Risk and Well Secured Brooklyn NY Elevator Apartment Building Brooklyn NY Elevator Apartment Building
Slide 13: Non-Owner Occupied Commercial Real Estate
Non - Owner Occupied Commercial Real Estate – Strong Equity on Local Properties Community Properties with an Average Loan Size of $2.1MM 13
Slide 14: Commercial Real Estate Portfolio Examples
Commercial Real Estate Portfolio Examples 14 Local Community Centers That Are Internet Resistant Food Anchored Shopping Center Retail Power Center
Slide 15: Residential Mixed Use – Higher Yields
Residential Mixed Use – Higher Yields, Less Exposed to Internet Disruption These Businesses are Vital to the Community Typical Building Not Typical 15
Slide 16: Business Banking – Supporting Customers
Business Banking – Supporting Customers Well Diversified Business Portfolio 16
Slide 17: Our Branches Have Evolved and Expanded with the Community
Our Branches Have Evolved and Expanded with the Community 25 Branches In Our Footprint Plus 2 In Process 17
Slide 18: Digital Banking Usage Continues to Increase
Digital Banking Usage Continues to Increase 18 Technology Enhancements Remain a Priority 25% Increase in Monthly Mobile Active Users Sept 2022 YoY ~ 26,500 Users with Active Status 22% Sept 2022 YoY Growth 11% Digital Banking Enrollment Sept 2022 YoY Growth
Slide 19: History of Better Than Industry Credit Quality
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 < 37% 4 – Only $23.1MM of real estate loans ( 0.33% of gross loans) with an LTV of 75% or more 4 Net Charge - offs Significantly Bette
Slide 20: Managing Through Rate Increases
20 Managing through rate increases – Controlling deposit rate increases is key for the net interest income outlook – Net interest income generally rises closer to the base case by Year 3 as cumulative loan repricing exceeds deposits costs Opportunistic capital return with strong dividend yield o
Slide 21: Takeaways
Takeaways Conservative Underwriting with History of Solid Value Creation ► Leading Community Bank in the Greater NYC Area ► Experienced Management Team ► Serving All Communities; Including Asian Banking Niche ► Well Positioned to Capture Market Share Through In - Market Merger Disruption ► Well Dive
Slide 22: Appendix
Appendix [EEUFLUSHING 22
Slide 23: Strong and Growing Capital Base
Strong and Growing Capital Base 23 60% of Earnings Returned Through the First 9 Months of 2022; 45% in 2021 Book Value Per Share 5 Year CAGR of 4% Tangible Book Value Per Share 5 Year CAGR of 4% $19.64 $20.59 $20.11 $22.26 $22.47 10.98% 10.95% 9.88% 10.86% 10.49% 8.74% 8.73% 8.38% 8.98% 8.74% 0.00%
Slide 24: Reconciliation of GAAP Earnings and Core Earnings
Reconciliation of GAAP Earnings and Core Earnings 24 Non - cash Fair Value Adjustments to GAAP Earnings The variance in GAAP 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 primarily to borrowing c
Slide 25: Reconciliation of GAAP Earnings and Core Earnings
25 Reconciliation of GAAP Earnings and Core Earnings 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 income (loss) before income taxes $ 109,278 $ 45,182 $ 53,331 $ 65,485 $ 66,134
Slide 26: Reconciliation of GAAP Revenue & Pre-Provision Pre-Tax Net Revenue
26 Reconciliation of GAAP Revenue & Pre - Provision Pre - Tax Net Revenue Efficiency ratio, a non - GAAP measure, was calculated by dividing noninterest expenses (excluding merger expenses, OREO expense, prepayment penalty on borrowings, the net gain/loss from the sale of OREO and net amortization o
Slide 27: Reconciliation of GAAP and Core Net Interest Income and NIM
27 Reconciliation of GAAP and Core Net Interest Income and NIM 1 Excludes purchase accounting average balances for the years ended 2021 and 2020 and for the nine months ended September 30, 2022 and 2021 (Dollars In thousands) GAAP net interest income $ 247,969 $ 195,199 $ 161,940 $ 167,406 $ 173,107
Slide 28: Calculation of Tangible Stockholders' Common Equity to Tangible Assets
28 Calculation of Tangible Stockholders’ Common Equity to Tangible Assets (Dollars in thousands) Total Equity $ 670,719 $ 679,628 $ 618,997 $ 579,672 $ 549,464 $ 532,608 Less: Goodwill (17,636) (17,636) (17,636) (16,127) (16,127) (16,127) Core deposit Intangibles (2,147) (2,562) (3,172) — — — Intang
Slide 29: Contact Details
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 29
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