Flushing Financial (FFIC) Status Update summary

Interest Rate Environment and Balance Sheet Management

• Balance sheet positioned to be neutral to interest rate changes, minimizing income volatility.

• Strategy implemented by late 2023 into 2024 to handle both rising and falling rates.

• Interest rate hedges provide $42.7M in annualized net interest income, reducing rate sensitivity.

Commercial Real Estate Exposure and Risk Profile

• Real estate loans comprise 89% of the portfolio, with average loan size between $2.3–$2.5 million.

• Average loan-to-value ratio is 36%-38% and debt coverage ratio is 1.8x, indicating conservative underwriting.

• Net charge-offs and noncurrent loans remain significantly better than industry averages.

• Only 0.6% of gross loans have LTVs of 75% or more, with most Manhattan office exposure performing.

• NPAs/assets at 0.53% and criticized/classified loans/gross loans at 1.72% as of 1Q24.

Competitive Strengths and Market Focus

• Ability to focus on specific sub-markets, such as communities with high Chinese and Korean populations.

• Asian banking market focus: $746M in loans and $1.3B in deposits, representing 18% of total deposits.

• Strategy leverages deep local knowledge and tailored services, unlike larger banks.

• Active community engagement, especially in Asian markets, supported by multilingual staff and cultural sponsorships.