Flushing Financial (FFIC) investor relations material

Executive summary

• Net interest margin expanded 16 bps year-over-year to 2.67% as cost of funds declined and noninterest-bearing deposits grew 15% YoY to $995.5 million.

• Core net income increased 25% YoY, with core EPS at $0.29 versus $0.23 a year ago; GAAP EPS was $0.17 compared to $(0.29) last year.

• The loan pipeline rose 54.9% YoY to $327.4 million, positioning the company for future growth.

• The company is progressing toward closing its transaction with OceanFirst Financial Corp.

Financial highlights

• Net interest income rose 4.2% YoY to $55.2 million, but declined 0.6% sequentially.

• Provision for credit losses decreased to $2.0 million from $4.3 million YoY and $2.7 million QoQ.

• Noninterest income fell YoY and QoQ, with core noninterest income at $5.2 million, down 3.2% YoY.

• GAAP noninterest expense dropped 21.6% YoY due to the absence of prior year goodwill impairment.

• Core noninterest expense increased 5.6% YoY to $44.3 million.

Outlook and guidance

• Management anticipates expanded capabilities and opportunities following the OceanFirst merger.

• The company enters the next chapter from a position of strength, supported by a robust loan pipeline.