Flushing Financial Corporation · NASDAQ:FFIC
Flushing Financial — Borex Capital Investor Meetings February 7-9, 2023
29 slides from Flushing Financial's conference presentation, Feb 6, 2023
Slide 1: Borex Capital Investor Meetings February 7 - 9, 2023
Borex Capital Investor Meetings February 7 - 9, 2023
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 de
Slide 3: Flushing Savings 90+ Year History
Flushing Savings 90+ Year History Celebrating Over 20 years as Public Company Flushing Savings Bank Opened on June 1, 1929 3
Slide 4: Track Record of Steady Growth
27 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 2022 $ - $2.81 $2.49 1995 2000 2005 2010 2015 2020 2021 2022 $0.6 $6.5 1995 2000 20
Slide 5: Flushing Financial Snapshot
Flushing Financial Snapshot (NASDAQ: FFIC) Key Messages Balance Sheet Assets $8.4B Loans, net $6.9B Deposits $6.5B 1 Equity $0.7B Performance GAAP/Core ROAA 0.93%/0.92% 2 GAAP/Core ROAE 11.44%/11.42% 2 GAAP/Core Exp/Avg Assets 1.73%/1.72% 2 Tangible Book Value $22.31 Dividend Yield 4.7% 3 2022 Key S
Slide 6: Experienced Executive Leadership Team
Experienced Executive Leadership Team Executive Compensation and Insider Stock Ownership (6.2% 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 Bin
Slide 7: Delivering Rewarding Relationships
Delivering Rewarding Relationships Building Relationships Across All Stakeholders 7
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: Key Events During 4Q22
▪ Signed Lease for Bensonhurst Branch Expanding our Asian Banking Footprint ▪ Maintained Investment Grade Rating by Kroll Bond Rating Agency, Inc. ▪ Presented Sponsorship Check to Queens Borough President Tech + Innovation Challenge ▪ Assisting to help transform Queens into a leading hub of innovati
Slide 10: Strong Asian Banking Market Focus
Strong Asian Banking Market Focus 17% 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 $801MM and Deposits $1.1B Multilingual Branch Staff Serves Diverse Customer Base
Slide 11: Loans Secured by Real Estate Have an Average LTV of <37%
Loans Secured by Real Estate Have an Average LTV of <37% Well Secured and Diversified Real Estate Portfolio Data as of December 31, 2022 38% 8% 4% 7% 3% 4% 2% 1% 8% 4% 1% 11% 12% Multifamily: 37.6% General Commercial: 7.5% CRE - Shopping Center: 4.4% CRE - Strip Mall: 6.6% CRE - Single Tenant: 2.5%
Slide 12: Multifamily Lending (38% of Loans)
Multifamily Lending ( 38% of Loans) - Rent Stabilized, Niche Player Our Conservative Lending Standards Lead to Minimal Losses ▪ Primarily in market lending ($2.6B portfolio) ▪ Bronx – 15%, Kings – 31%, Manhattan – 21%, Queens – 17%, Other 16% ▪ Review net operating income and the collateral plus the
Slide 13: Non-Owner Occupied Commercial Real Estate (28% of Loans)
Non - Owner Occupied Commercial Real Estate (28% of Loans) – Strong Equity on Local Properties Underwrite Real Estate Loans with a Cap Rate in Mid - 5s and Stress Test Each Loan ▪ Primarily in market lending ($1.9B portfolio) ▪ Bronx – 9%, Kings – 17%, Manhattan – 17%, Queens – 21%, Other NY - 8%, N
Slide 14: Residential Mixed Use (8% of Loans)
Residential Mixed Use (8% of Loans) – Higher Yields, Less Exposed to Internet Disruption These Businesses are Vital to the Local Community ▪ Primarily in market lending ($554MM portfolio) ▪ Properties contain up to four residential dwelling units and include a commercial component ▪ Review net opera
Slide 15: Commercial Business (22% of Loans)
Commercial Business (22% of Loans) – Well Diversified Commercial Business ▪ Primarily in market lending ▪ Annual sales up to $250MM ▪ Lines of credit and term loans, including owner occupied mortgages ▪ Loans secured by business assets, including account receivables, inventory, equipment, and real e
Slide 16: Our Branches Have Evolved with the Community and Technology
Our Branches Have Evolved with the Community and Technology 25 Branches In Our Footprint Plus 2 In Process 16
Slide 17: Digital Banking Usage Continues to Increase
Digital Banking Usage Continues to Increase 2 4 % Increase in Monthly Mobile Deposit Active Users Dec 2022 YoY 20% Increase in Users with Active Online Banking Status Dec 2022 YoY 11% Digital Banking Enrollment Dec 2022 YoY Growth Technology Enhancements Remain a Priority 17
Slide 18: 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 $23.4MM of real estate loans (0.3% of gross loans) with an LTV of 75% or more 4 Net Charge - offs Significantly Better T
Slide 19: 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 Diversified and Low Risk Loan Portfolio ► Embracing and Expanding Digital and Mobile
Slide 20: Appendix
Appendix [EIGFLUSHING 20
Slide 21: Strong and Growing Capital Base
Strong and Growing Capital Base 71 % of Earnings Returned in 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 $22.97 10.98% 10.95% 9.88% 10.86% 10.52% 8.74% 8.73% 8.38% 8.98% 8.61% 0.00% 5.00% 10.00% 15.00% 20.00% 25
Slide 22: Annual Financial Highlights
Annual Financial Highlights Reported Results EPS $2.50 $2.59 $1.18 $1.44 $1.92 $1.41 ROAA 0.93 % 1.00 % 0.48 % 0.59 % 0.85 % 0.66 % ROAE 11.44 12.60 5.98 7.35 10.30 7.74 NIM FTE 3.11 3.24 2.85 2.47 2.70 2.93 Core 1 Results EPS $2.49 $2.81 $1.70 $1.65 $1.94 $1.57 ROAA 0.92 % 1.09 % 0.68 % 0.68 % 0.85
Slide 23: Environmental, Social, and Governance
Environmental, Social, and Governance Environmental – reduction of carbon footprint and assessing climate change through underwriting Social - Building rewarding relationships with communities, customers, and employees See more details in our ESG Report under Investor Relations at FlushingBank.com G
Slide 24: Reconciliation of GAAP Earnings and Core Earnings
Reconciliation of GAAP Earnings and Core Earnings 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 carr
Slide 25: Reconciliation of GAAP to CORE Earnings
Reconciliation of GAAP to CORE Earnings (Dollars In thousands, except per share data) GAAP income (loss) before income taxes $ 104,852 $ 109,278 $ 45,182 $ 53,331 $ 65,485 $ 66,134 Day 1, Provision for Credit Losses - Empire transaction — — 1,818 — — — Net (gain) loss from fair value adjustments (5,
Slide 26: Reconciliation of GAAP Revenue and Pre-provision Pre-tax Net Revenue
Reconciliation of GAAP Revenue and Pre - provision Pre - tax Net Revenue (Dollars In thousands) GAAP Net interest income $ 243,616 $ 247,969 $ 195,199 $ 161,940 $ 167,406 $ 173,107 Net (gain) loss from fair value adjustments on qualifying hedges (775) (2,079) 1,185 1,678 — — Net amortization of purc
Slide 27: Reconciliation of GAAP to Core Net Interest Income and NIM
1 Excludes purchase accounting average balances for all periods presented Reconciliation of GAAP to Core Net Interest Income and NIM (Dollars In thousands) GAAP net interest income $ 243,616 $ 247,969 $ 195,199 $ 161,940 $ 167,406 $ 173,107 Net (gain) loss from fair value adjustments on qualifying h
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 $ 677,157 $ 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 (2,017) (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
Flushing Financial — Borex Capital Investor Meetings February 7-9, 2023 on 6ix