Flushing Financial Corporation · NASDAQ:FFIC
Flushing Financial — Q2 2025 Earnings Presentation
45 slides from Flushing Financial's earnings presentation, Jul 25, 2025
Slide 1: 2Q25 Earnings Conference Call
2Q25 Earnings Conference Call July 25, 2025 Building Rewarding Relationships FlushingBank.com
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 des
Slide 3: 2Q25 Financial Highlights
2Q25 Financial Highlights ▪ NIM Expansion in 2Q25 • GAAP NIM increased 3 bps QoQ to 2.54% • Core NIM expands 3 bps QoQ to 2.52% ▪ Deposit and PPNR Growth • Average total deposits increased 5.7% YoY and 0.6% QoQ to $7.6 billion • Average noninterest bearing deposits increased 6.4% YoY and 2.4% QoQ to
Slide 4: Area of Focus: Improving Profitability
Area of Focus: Improving Profitability ▪ Both GAAP and Core NIM expanded 3 bps QoQ, respectively ▪ Real estate loans to reprice ~160 bps higher through 2027 ▪ Noninterest bearing deposit growth ▪ Continue to invest in the business ▪ Focused on improving ROAE over time ▪ Capital to grow as profitabil
Slide 5: NIM Expansion GAAP & Core NII and NIM Increase
NIM Expansion GAAP & Core NII and NIM Increase Net Interest Income and Margin Core NII FTE ($ Millions) increased by 10.00% $6 0. 0 $10.5 million YoY 9.00% $52.8 $53.0 8.00% $5 0. 0 $48.2 $45.0 7.00% $42.5 6.00% $4 0. 0 5.00% 4.00% $3 0. 0 3.00% 2.49% 2.52% 2.00% 2.25% $2 0. 0 2.03% 2.07% 1.00% $1 0
Slide 6: Average Deposits Increase YoY and QoQ; Noninterest Bearing Deposits Increase
Average Deposits Increase YoY and QoQ; Noninterest Bearing Deposits Increase Total Average Deposits ($ Millions) 800 0 $7,464 $7,450 $7,561 $7,607 5. 00% ▪ Noninterest bearing deposits $7,196 700 0 turned a corner in 2H24 4. 00% 3.55% 3.38% 600 0 500 0 3.21% 3.02% 3.10% ▪ Incentive plans emphasize n
Slide 7: Contractual Real Estate Loan Repricing to Drive NIM Expansion
Contractual Real Estate Loan Repricing to Drive NIM Expansion Loan Repricing 1,6 50 ($ Millions) 1,4 50 +136 bps; +171 bps; +160 bps; $5.11 $12.31 $16.31 ▪ As of March 31, 2025, $130.8 million 1,2 50 1,0 50 $1,016 of loans were due to reprice in 2Q25 130 $720 850 bps higher to 6.65%2 650 450 $373 ▪
Slide 8: Area of Focus: Maintain Credit Discipline
Area of Focus: Maintain Credit Discipline ▪ Low risk profile ▪ Conservative loan underwriting ▪ History of low credit losses ▪ Enhanced focus on relationship pricing FlushingBank.com | NSQ: FFIC 8
Slide 9: Net Charge-offs Significantly Better than the Industry; Strong DCR
Net Charge-offs Significantly Better than the Industry; Strong DCR NCOs / Average Loans1 ▪ Multifamily and Investor CRE portfolios 3.00% debt coverage ratios (DCR) at ~1.85x2 2.50% ▪ Charge-offs limited due to DCR stress testing and underwriting practices: 2.00% ▪ 200 bps shock increase in rates pro
Slide 10: Noncurrent Loans Outperforming the Industry
Noncurrent Loans Outperforming the Industry Noncurrent Loans / Loans1 6.00% ▪ Over two decades and multiple credit cycles, Flushing Financial has a history 5.00% of better than industry credit quality ▪ Average LTVs on the Real Estate 4.00% portfolio is less than 35%2 3.00% ▪ Only $40.9 million of r
Slide 11: Conservative Underwriting In Multifamily Portfolio
Conservative Underwriting In Multifamily Portfolio Portfolio Data Points Multifamily NPLs/Loans: 50 bps Criticized and Classified Loans/Loans: 73 bps Weighted Average DCR1: 1.8x Portfolio Size: $2.5 billion Average Loan Size: $1.2 million 1 Based on most recent Annual Loan Review Data as of June 30,
Slide 12: Low Past Due Multifamily Loans
Low Past Due Multifamily Loans Multifamily Ratios vs Peer Banks – 1Q251 Multifamily Allowance for Credit Losses/Criticized and Classified Multifamily Loans – 1Q25 Criticized and Classified Multifamily Loans / Multifamily Allowance for Credit Losses / Total Multifamily Loans Criticized and Classified
Slide 13: Strong Credit Quality In Investor CRE
Strong Credit Quality In Investor CRE Portfolio Data Points Investor CRE NPLs/Loans: 33 bps Criticized and Classified Loans/Loans: 162 bps Weighted Average DCR1: 1.9x Portfolio Size: $2.0 billion Average Loan Size: $2.6 million 1 Based on most recent Annual Loan Review Data as of June 30, 2025 Flush
Slide 14: Area of Focus: Preserving Strong Liquidity and Capital
Area of Focus: Preserving Strong Liquidity and Capital ▪ Maintain ample liquidity with $3.6 billion of undrawn lines and resources as of June 30, 2025 ▪ Average total deposits increased by 5.7% YoY and 0.6% QoQ ▪ Uninsured and uncollateralized deposits only 17% of deposits as of June 30, 2025 ▪ Tang
Slide 15: Strong Asian Banking Market Focus
Strong Asian Banking Market Focus Asian Deposits ($MMs) $1,600 $1,400 ▪ Asian Communities – Total Loans $740.6 million and Deposits $1.36 billion $1,200 ▪ 12.4% Deposit CAGR from 2Q22-2Q25 $1,000 ▪ Multilingual Branch Staff Serves Diverse $800 Customer Base in NYC Metro Area ▪ About One Third of Bra
Slide 16: Outlook
Outlook Balance Sheet Noninterest Income ▪ Expect stable total assets; loan growth market ▪ Approximately $41.2 million of back-to-back swaps in dependent the loan pipeline; banking services fee income to ▪ Focused on improving asset and funding mix; expect benefit in the quarter as these loans clos
Slide 17: Key Takeaways Improve Profitability
Key Takeaways Improve Profitability ▪ GAAP and Core NIM each expanded 3 bps QoQ ▪ Real Estate loans expected to reprice ~160 bps higher through 2027 ▪ Some opportunities to lower deposit costs ▪ Continuing to invest in people and branches to drive core business improvements Improve ▪ Focused on impr
Slide 18: Appendix
Appendix
Slide 19: Key Community Events: Lunar New Year Parades
Key Community Events: Lunar New Year Parades FlushingBank.com | NSQ: FFIC 19
Slide 20: Digital Banking Usage Continues to Increase
Digital Banking Usage Continues to Increase 8% Increase in Monthly Mobile ~15,100 31,500 Deposit Active Users Users with Active Online Digital Banking Banking Status Enrollment June 2025 YoY Growth June 2025 June 2025 Internet Banks Numerated ~15,700 iGObanking and BankPurely Small Business Lending
Slide 21: Annual Financial Highlights
Annual Financial Highlights 2024 2023 2022 2021 2020 2019 Reported Results (Loss) Earnings per Share ($1.07) $0.96 $2.50 $2.59 $1.18 $1.44 ROAA (0.35) % 0.34 % 0.93 % 1.00 % 0.48 % 0.59 % ROAE (4.73) 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 $2.49
Slide 22: 29 Year Track Record of Steady Growth
29 Year Track Record of Steady Growth Assets ($B) Total Gross Loans ($B) Total Deposits ($B) 9% CAGR 11% CAGR 9% CAGR $7.3 $8.8 $6.7 $0.7 $0.6 $0.3 1995 2000 2005 2010 2015 2020 2024 2Q25 1995 2000 2005 2010 2015 2020 2024 2Q25 1995 2000 2005 2010 2015 2020 2024 2Q25 Core EPS ($) Dividends per Share
Slide 23: Approach to Real Estate Lending: Low Leverage & Shared Philosophy
Approach to Real Estate Lending: Low Leverage & Shared Philosophy ▪ 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, median NCOs to average loans has been 4 bps compared to 59 bps for the ind
Slide 24: $6.7B Total Portfolio
Loans Secured by Real Estate Have an Average LTV of <35% 1% 90% Real Estate Based 1% 2%1%1% 2% Multifamily: 38.0% 4% Owner Occupied CRE: 12.0% 4% Non Real Estate: 10.0% General Commercial: 8.0% 4% 38% One-to-four family - Mixed Use: 7.0% $6.7B CRE - Shopping Center: 5.0% 5% CRE - Strip Mall: 4.0% Co
Slide 25: Multifamily: Conservative Underwriting Standards
Multifamily: Conservative Underwriting Standards Portfolio Data Points Underwriting Standards at Origination Portfolio Size: $2.5 billion ▪ All loans underwritten with a 250-300 bps increase in rates at origination; Average Loan Size: $1.2 million especially when rates were low ▪ Debt coverage ratio
Slide 26: Multifamily: Manageable Repricing Risk
Multifamily: Manageable Repricing Risk Actual Repricing Key Data Points At Origination At Reprice Date ▪ There were $54.5 million of multifamily loans schedule to ($000s) 2019 Stressed CAGR 2023 reprice or mature in 2Q25 ~171 bps higher based on the Purchase Price: $7,500 $7,500 March 31, 2025 index
Slide 27: Multifamily: DCR Risks Are Well Contained
Multifamily: DCR Risks Are Well Contained Debt Coverage Ratio Details1 Key Data Points1 Multifamily weighted 1.8x2 ▪ Underwriting assumes higher rates at origination average DCR: leading to strong DCRs Amount of loans with a ▪ Low amount of loans with DCRs less than 1.2x $196.0 million3 DCR of 1.0-1
Slide 28: Multifamily: Minimal Interest Only; High Quality Performance
Multifamily: Minimal Interest Only; High Quality Performance Interest Only Loan Details1 Key Data Points1 Total interest only loans: $114.5 million ▪ Interest only loans are typically only offered to Weighted average LTV2: 50% relationship customers who have a prior history with the Bank Weighted av
Slide 29: Multifamily: Rent Regulated Portfolio – Granular and Low Risk
Multifamily: Rent Regulated Portfolio – Granular and Low Risk Portfolio Data Points1 Key Data Points1 Portfolio Size: $1.5 billion ▪ New York City area has a shortage of affordable Average Loan Size: $1.3 million housing creating the need for rent regulated units; Current Weighted Average Coupon: 5.
Slide 30: Investor CRE: Conservative Underwriting Standards
Investor CRE: Conservative Underwriting Standards Portfolio Data Points Key Data Points1 Portfolio Size: $2.0 billion ▪ All loans underwritten with a 250-300 bps increase in rates at origination; especially when rates were low Average Loan Size: $2.6 million ▪ Debt coverage ratios (DCR) based on cur
Slide 31: Geographically Diverse Multifamily and CRE Portfolios
Geographically Diverse Multifamily and CRE Portfolios Multifamily Geography Non-Owner Occupied CRE Geography 13% 9% 17% 16% 3% 17% 8% $2.5 Billion $2.0 Billion 18% Portfolio Portfolio 7% 28% 5% 18% 21% 20% Bronx Kings Manhattan Bronx Kings Manhattan Queens Other Queens Other NY Nassau Suffolk NJ CT/
Slide 32: Well-Diversified Commercial Business Portfolio
Well-Diversified Commercial Business Portfolio Real Estate 1.8% 1.6% 1.9% 1.6% 11.5% Commercial Business Collateral 1.9% $766MM 2.1% 2.5% ▪ Primarily in market lending 2.5% 3.1% 11.3% ▪ Annual sales up to $250 million 3.4% Lines of credit and term loans, including owner 5.1% $1.4B ▪ occupied mortgag
Slide 33: Low Risk Credit Profile Results
Low Risk Credit Profile Results ACL by Loan Segment (2Q25) 8.83% 0.50% 0.66% 0.34% 0.33% 0.28% 0.82% 10 .0 0% 0. 00 % $2,488 -1 0. 00% $1,988 -2 0. 00% -3 0. 00% $1,408 -4 0. 00% -5 0. 00% $494 $258 -6 0. 00% $47 $15 -7 0. 00% Multifamily Commercial Real 1-4 Family - Mixed 1-4 Family - Construction
Slide 34: Interest Rate Hedges: Shifting more towards Neutral
Interest Rate Hedges: Shifting more towards Neutral Annualized 3Q25 2025 2026 2027 Net Interest Swap Notional Maturities Maturities Maturities Maturities Income1 Type ($ Million) ($ Million) ($ Million) ($ Million) ($ Million) ($ Million) Loans2 $712.0 $60.4 $60.4 $314.4 $115.0 $7.8 Funding2 $725.8
Slide 35: Reconciliation of GAAP Earnings (Loss) and Core Earnings
Reconciliation of GAAP Earnings (Loss) and Core Earnings Non-cash Fair Value Adjustments to GAAP Earnings The variance in GAAP earnings (loss) 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
Slide 36: Reconciliation of GAAP Earnings (Loss) to Core Earnings
For the three months ended For the six months ended (Dollars in thousands, June 30, March 31, December 31, September 30, June 30, June 30, June 30, except per share data) 2025 2025 2024 2024 2024 2025 2024 Reconciliation GAAP income (loss) before income taxes $ 18,936 $ (5,931) $ (71,857) $ 11,457 $
Slide 37: Reconciliation of GAAP Revenue and Pre-provision Pre-tax Net Revenue
For the three months ended For the six months ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, Reconciliation (Dollars in thousands) GAAP Net interest income $ 2025 53,209 $ 2025 52,989 $ 2024 51,235 $ 2024 45,603 $ 2024 42,776 $ 2025 106,198 $ 2024 85,173 of GAAP Net (
Slide 38: Reconciliation of GAAP to Core Net Interest Income and NIM - Quarters
Reconciliation of GAAP June 30, March 31, For the three months ended December 31, September 30, June 30, For the six months ended June 30, June 30, to Core Net (Dollars in thousands) 2025 2025 2024 2024 2024 2025 2024 GAAP net interest income $ 53,209 $ 52,989 $ 51,235 $ 45,603 $ 42,776 $ 106,198 $
Slide 39: Calculation of Tangible Stockholders' Common Equity to Tangible Assets - Quarters
Calculation of (Dollars in thousands) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Tangible T otal Equity $ 706,377 $ 702,851 $ 724,539 $ 666,891 $ 665,322 Less: Goodwill — — (17,636) (17,636) (17,636) Stockholders’ Core deposit intangibles T angible Stockholders'
Slide 40: Reconciliation of GAAP Earnings (Loss) and Core Earnings - Years
Years Ended Reconciliation December 31, December 31, December 31, December 31, December 31, December 31, (Dollars In thousands, except per share data) 2024 2022 2021 2020 2019 2018 GAAP (loss) income before income taxes $ (48,267) $ 39,833 $ 104,852 $ 109,278 $ 45,182 $ 53,331 of GAAP Day 1, Provisi
Slide 41: Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue - Years
Years Ended December 31, December 31, December 31, December 31, December 31, December 31, Reconciliation (Dollars In thousands) 2024 2023 2022 2021 2020 2019 GAAP Net interest income $ 182,011 $ 179,152 $ 243,616 $ 247,969 $ 195,199 $ 161,940 Net (gain) loss from fair value of GAAP adjustments on he
Slide 42: Reconciliation of GAAP and Core Net Interest Income and NIM - Years
Reconciliation Years Ended December 31, December 31, December 31, December 31, December 31, December 31, (Dollars In thousands) 2024 2023 2022 2021 2020 2019 of GAAP and GAAP net interest income Net (gain) loss from fair value adjustments $ 182,011 $ 179,152 $ 243,616 $ 247,969 $ 195,199 $ 161,940 C
Slide 43: Calculation of Tangible Stockholders' Common Equity to Tangible Assets - Years
Calculation of (Dollars in thousands) T otal Equity $ December 31, 2024 724,539 $ December 31, 2023 669,837 $ December 31, 2022 677,157 $ December 31, 2021 679,628 $ December 31, 2020 618,997 $ December 31, 2019 579,672 Tangible Less: Goodwill (17,636) (17,636) (17,636) (17,636) (17,636) (16,127) Co
Slide 44: Contact Details
Contact Details Susan K. Cullen SEVP, CFO & Treasurer scullen@flushingbank.com (718) 961-5400
Slide 45: FlushingBank.com
FFICIQAGS INE Financial Corporation