Flushing Financial (FFIC) investor relations material

Executive summary

• Net interest income rose 4.2% year-over-year to $55.2 million, with net interest margin expanding 16 bps to 2.67% as 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.

• Net income for Q1 2026 was $5.8 million, reversing a net loss of $9.8 million in Q1 2025, driven by improved net interest margin and lower provision for credit losses.

• 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., with all regulatory and shareholder approvals obtained and closing expected by June 1, 2026.

Financial highlights

• Net interest income rose 4.2% YoY to $55.2 million, but declined 0.6% sequentially; net interest margin up 16 bps to 2.67%.

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

• Noninterest income fell 64.8% YoY to $1.8 million, mainly due to higher net losses from fair value adjustments.

• Noninterest expense dropped 21.6% YoY to $46.8 million, reflecting the absence of a prior year goodwill impairment charge.

• Diluted EPS was $0.17, compared to $(0.29) in Q1 2025.

Outlook and guidance

• The merger with OceanFirst is expected to enhance capital position, supported by a $225 million Warburg Pincus investment.

• Management anticipates expanded capabilities and opportunities following the OceanFirst merger, with a robust loan pipeline supporting future growth.

• Management continues to focus on disciplined loan growth, conservative underwriting, and maintaining strong liquidity.