Core Financial Performance - The company reported a GAAP EPS of $0.41 for Q2 2025, marking a significant increase of 12,878% from Q2 2024, primarily due to fair value adjustments on debt and the reversal of a valuation allowance [2][11][18] - Core EPS also rose to $0.32, reflecting broad-based profitability improvements [3][11] - The GAAP net interest margin reached 2.54%, with a core net interest margin of 2.52%, both showing a quarter-over-quarter increase of 3 basis points [3][11][18] Deposit Growth and Composition - Average total deposits increased to $7.6 billion, up 6% year-over-year and 1% quarter-over-quarter [4][11][19] - Non-interest-bearing deposits grew to $875 million, representing a 6% year-over-year and 2% quarter-over-quarter increase [4][19] - The deposit mix remained stable, with uninsured and uncollateralized deposits accounting for only 17% of total deposits, reducing funding risk [8][36] Credit Quality and Risk Management - Pre-provision, pretax net revenue reached $23.1 million, the highest since 2022, with core PPNR at $19 million [5][11][20] - Net charge-offs were stable at 15 basis points, and non-performing assets remained at 75 basis points quarter-over-quarter [5][20] - Criticized and classified loans improved to 108 basis points from 133 basis points in the previous quarter, indicating enhanced credit quality [5][11][21] Loan Repricing and Future Income - The company identified $373 million of loans scheduled to reprice at rates 136 basis points higher by year-end 2025, with $2.1 billion set to reprice through 2027, providing a projected net interest income tailwind [6][27][39] - Multifamily loan retention was strong at 92%, with an average rate increase of 154 basis points [6][29] Strategic Initiatives and Market Focus - The company is focusing on core deposit growth in the Asian American community, with deposits in this segment reaching $1.4 billion and a compound annual growth rate of 12.4% since Q2 2022 [9][38] - Plans for branch expansion include a new location in Jackson Heights and a second branch in Chinatown [9][51] Expense Management and Guidance - The expected core non-interest expense growth for 2025 has been lowered to 4.5%-5.5% over a base of $159.6 million, attributed to reductions in incentive accruals and strict cost control [8][40][50] - The projected effective tax rate for the remainder of 2025 is between 24.5% and 26.5% [8][40]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.41 and core earnings per share of $0.32, representing an increase of 12878% year over year [5] - GAAP net interest margin expanded by three basis points quarter over quarter to 2.54%, while core net interest margin also increased by three basis points to 2.52% [6] - Average total deposits increased by 6% year over year and 1% quarter over quarter to $7.6 billion [6] - Pre-provision pre-tax net revenue reached $23.1 million, the highest level since 2022 [6] - Tangible common equity grew by 25 basis points to 8.04% [8] Business Line Data and Key Metrics Changes - Core net interest income increased by $10.5 million year over year, driven by loan yields increasing by seven basis points [10] - Non-interest bearing deposits grew by 6% year over year and 2% quarter over quarter [12] - New checking account openings increased by 21% year over year and 8% quarter over quarter, indicating strong customer acquisition [12] Market Data and Key Metrics Changes - The bank's commercial real estate concentration decreased to under 500% for the first time since Q3 2023 [7] - Non-performing loans in the multifamily portfolio halved to 50 basis points, down from 101 basis points in the previous quarter [19] - Criticized and classified loans in the multifamily segment improved to 73 basis points from 116 basis points [19] Company Strategy and Development Direction - The company focuses on improving profitability, maintaining credit discipline, and preserving strong liquidity and capital [8] - The asset repricing strategy is expected to drive net interest margin expansion, with real estate loans projected to reprice approximately 160 basis points higher through 2027 [9] - The company is committed to serving the Asian American communities, with deposits in this market growing to $1.4 billion, reflecting a 12.4% compound annual growth rate since Q2 2022 [26] Management's Comments on Operating Environment and Future Outlook - Management expects total assets to remain stable, with loan growth being market-dependent [27] - The company anticipates some seasonal deposit outflows in Q3 but expects recovery in Q4 [27] - The effective tax rate is expected to be lowered to a range of 24.5% to 26.5% for the remainder of 2025 [28] Other Important Information - The company maintains a strong liquidity position with approximately $4 billion of undrawn lines and resources at quarter end [25] - The reliance on wholesale funding is limited, with uninsured and uncollateralized deposits representing only 17% of total deposits [25] Q&A Session Summary Question: What caused the $400 million decline in deposits? - Management indicated that the decline was mostly seasonal, related to government deposits moving out, and expected a recovery later in the year [34][35] Question: What would happen to margins if the Fed cuts rates? - A return to a more normal yield curve would be positive for the company, potentially leading to a couple of basis points improvement in margins [38][39] Question: Will there be buybacks in the second half of the year? - Management stated that they are focused on building capital stronger before considering buybacks, prioritizing profitable growth and dividends [44] Question: What drove the decrease in expense outlook? - The decrease was attributed to managing expenses tightly and some accruals related to incentive compensation [50] Question: What is the outlook for non-CD deposit repricing? - Management noted limited opportunities to reduce funding costs until the Fed makes a move, with most support for net interest margin expected from asset-side loan repricing [56]

Financial Performance - GAAP NIM increased 3 bps QoQ to 2.54%[6] - Core NIM expands 3 bps QoQ to 2.52%[6] - Average total deposits increased 5.7% YoY and 0.6% QoQ to $7.6 billion[6] - Core NII FTE increased by $10.5 million YoY[11] - PPNR of $23.1 million in 2Q25 at highest level since 3Q22[6] Asset Quality - Net charge-offs totaled 15 bps for 2Q25, less than 1 bp of net recoveries in 2Q24, and 27 bps in 1Q25[6] - NPAs to assets of 75 bps at 2Q25 compared to 61 bps at 2Q24 and 71 bps at 1Q25[6] - Criticized and Classified loan to total loans of 108 bps, down from 113 in 2Q24 and 133 in 1Q25[6] Capital and Liquidity - Tangible common equity ratio of 8.04%, up 25 bps QoQ[6] - Liquidity remains strong with $3.6 billion of undrawn lines and resources at quarter end[6] - Asian Communities – Total Loans $740.6 million and Deposits $1.36 billion[39] Loan Portfolio - Multifamily portfolio size is $2.5 billion with NPLs/Loans at 50 bps[29] - Investor CRE portfolio size is $2.0 billion with NPLs/Loans at 33 bps[33]

Core Insights - Flushing Financial reported a revenue of $63.49 million for the quarter ended June 2025, marking a 35.1% increase year-over-year and exceeding the Zacks Consensus Estimate by 8.15% [1] - The earnings per share (EPS) for the quarter was $0.32, up from $0.18 in the same quarter last year, representing a surprise of 10.34% over the consensus estimate of $0.29 [1] Financial Performance Metrics - Efficiency ratio stood at 67.7%, better than the average estimate of 72.2% from two analysts [4] - Net Interest Margin was reported at 2.5%, matching the average estimate [4] - Total interest-earning assets averaged $8.4 billion, slightly below the average estimate of $8.43 billion [4] - Net Interest Income was $53.21 million, surpassing the average estimate of $52.59 million [4] - Total Non-Interest Income reached $10.28 million, significantly higher than the average estimate of $6.11 million [4] - Banking services fee income was $1.95 million, exceeding the average estimate of $1.47 million [4] Stock Performance - Flushing Financial's shares returned +8.5% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

分组1 - Flushing Financial reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.18 per share a year ago, representing an earnings surprise of +10.34% [1] - The company posted revenues of $63.49 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.15%, compared to year-ago revenues of $46.99 million [2] - Flushing Financial has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 12.5% since the beginning of the year, while the S&P 500 gained 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.30 on revenues of $59.05 million, and for the current fiscal year, it is $1.15 on revenues of $236.05 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for the sector [8]

[Executive Summary & Q2 2025 Performance](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Performance) This section provides an overview of the CEO's commentary, key performance metrics, and detailed highlights for Q2 2025, emphasizing strategic execution and financial strength [CEO Commentary](index=1&type=section&id=CEO%20Commentary) John R. Buran, President and CEO, emphasized the successful execution of strategic priorities in Q2 2025, leading to net interest margin expansion, significant noninterest-bearing deposit growth, and improved capital ratios - Successful execution of strategic priorities, building upon foundational actions from preceding quarters[2](index=2&type=chunk) - Pleased to report another quarter of net interest margin expansion, with both GAAP and Core NIM increasing[2](index=2&type=chunk) - Strong year-over-year growth in average noninterest-bearing deposits, which increased **6.4%**[2](index=2&type=chunk) - Tangible common equity to tangible assets ratio of **8.04%**, a significant improvement from the prior year[2](index=2&type=chunk) - Maintain disciplined underwriting standards and proactive risk management for long-term shareholder value[2](index=2&type=chunk) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Flushing Financial Corporation reported strong Q2 2025 results with significant year-over-year increases in GAAP and Core EPS, driven by net interest margin expansion and robust average deposit growth 2Q25 Earnings Performance and Key Metrics | Metric | 2Q25 Value | YoY Change | QoQ Change | | :----- | :--------- | :--------- | :--------- | | GAAP EPS | $0.41 | 127.8% | -241.4% | | Core EPS | $0.32 | 77.8% | 39.1% | | GAAP NIM FTE | 2.54% | 49 bps | 3 bps | | Core NIM FTE | 2.52% | 49 bps | 3 bps | | Average Deposits | $7.6 billion | 5.7% | 0.6% | | Average Noninterest Bearing Deposits | N/A | 6.4% | 2.4% | | GAAP Pre-provision Pre-tax Net Revenue | N/A | 191.1% | N/A | | Core Pre-provision Pre-tax Net Revenue | N/A | 134.5% | N/A | - Credit metrics stable to improving: NPAs to assets were **75 bps** (compared to 71 bps prior quarter), Criticized and classified loans totaled **108 bps** of gross loans (compared to 133 bps in the prior quarter), Net charge-offs to average loans were **15 bps** (compared to 27 bps in 1Q25)[5](index=5&type=chunk) - Capital expanded QoQ: TCE/TA was **8.04%** at June 30, 2025, compared to 7.79% at March 31, 2025[5](index=5&type=chunk) [Detailed Q2 2025 Highlights](index=3&type=section&id=Detailed%202Q25%20Highlights) Key achievements in Q2 2025 included further expansion of GAAP and Core Net Interest Margin, improved profitability metrics, and an increase in tangible book value per share - GAAP and Core NIM expanded **3 bps** each QoQ to **2.54%** and **2.52%**, respectively[9](index=9&type=chunk)[10](index=10&type=chunk) - GAAP ROAA and ROAE increased **107 bps** and **1,336 bps** QoQ; Core ROAA and ROAE improved **15 bps** and **195 bps** QoQ[9](index=9&type=chunk) - Tangible book value per share increased **0.5%** QoQ to **$20.89** at June 30, 2025[9](index=9&type=chunk)[10](index=10&type=chunk) - Approximately **90%** of the loan portfolio is collateralized by real estate with an average loan to value of less than **35%**[9](index=9&type=chunk) - Maintaining ample liquidity with **$3.6 billion** of undrawn lines and resources as of June 30, 2025[9](index=9&type=chunk) - Total average deposits increased by **5.7%** YoY and **0.6%** QoQ; Average noninterest bearing deposits increased **6.4%** YoY and **2.4%** QoQ[9](index=9&type=chunk)[10](index=10&type=chunk) - Tangible Common Equity to Tangible Assets was **8.04%** at June 30, 2025, up **92 bps** YoY and **25 bps** QoQ[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) This section analyzes the company's income statement, highlighting trends in net interest income, noninterest income, expenses, and credit loss provisions [Income Statement Highlights](index=5&type=section&id=Income%20Statement%20Highlights) The company experienced significant year-over-year growth in net interest income, noninterest income, and net income, while noninterest expense saw a notable quarter-over-quarter decrease Income Statement Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Net Interest Income | $53,209 | $52,989 | $42,776 | 24.4 % | 0.4 % | | Provision for Credit Losses | 4,194 | 4,318 | 809 | 418.4 % | (2.9) % | | Noninterest Income (Loss) | 10,277 | 5,074 | 4,216 | 143.8 % | 102.5 % | | Noninterest Expense | 40,356 | 59,676 | 39,047 | 3.4 % | (32.4) % | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | 166.9 % | (245.0) % | | Diluted Earnings (Loss) per Common Share | $0.41 | ($0.29) | $0.18 | 127.8 % | (241.4) % | | Core Net Income | $11,162 | $7,931 | $5,456 | 104.6 % | 40.7 % | | Core EPS | $0.32 | $0.23 | $0.18 | 77.8 % | 39.1 % | - Net charge-offs (recoveries) were **$2.5 million** (**15 bps** of average loans) in 2Q25, compared to **$(92,000)** ((1) bp of average loans) in 2Q24 and **$4.4 million** (**27 bps** of average loans) in 1Q25[12](index=12&type=chunk) - Net Interest Margin FTE of **2.54%** increased **49 bps** YoY and **3 bps** QoQ; the cost of funds increased **6 bps** QoQ primarily due to swap maturities and forward starting swaps at higher rates, while the yield on interest earning assets increased **8 bps** QoQ[15](index=15&type=chunk) - Effective tax rate was **25.0%** in 2Q25 compared to **25.4%** in 2Q24 and **(65.2)%** in 1Q25, with the 1Q25 rate primarily related to a non-tax deductible goodwill impairment[15](index=15&type=chunk) [Balance Sheet, Credit Quality, and Capital](index=7&type=section&id=Balance%20Sheet%2C%20Credit%20Quality%2C%20and%20Capital) This section reviews the company's balance sheet, credit quality metrics, and capital ratios, highlighting trends in loans, deposits, nonperforming assets, and capital adequacy [Balance Sheet, Credit Quality, and Capital Highlights](index=7&type=section&id=Balance%20Sheet%2C%20Credit%20Quality%2C%20and%20Capital%20Highlights) The balance sheet showed a slight decrease in average loans YoY but an increase QoQ, while average total deposits increased both YoY and QoQ Balance Sheet & Capital Key Figures (2Q25 vs. Prior Periods) | Metric | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :----- | :--- | :--- | :--- | :--------- | :--------- | | Avg Loans ($B) | $6.7 | $6.7 | $6.7 | (1.0)% | 0.1% | | Avg Dep ($B) | $7.6 | $7.6 | $7.2 | 5.7% | 0.6% | | Book Value/Share | $20.91 | $20.81 | $22.89 | (8.7)% | 0.5% | | Tangible BV/Share | $20.89 | $20.78 | $22.24 | (6.1)% | 0.5% | | TCE/TA (%) | 8.04% | 7.79% | 7.12% | 92 bps | 25 bps | | Leverage Ratio (%) | 8.31% | 8.12% | 8.18% | 13 bps | 19 bps | Credit Quality Key Figures (2Q25 vs. Prior Periods) | Metric ($000s) | 2Q25 | 1Q25 | 2Q24 | YoY Change | QoQ Change | | :-------------- | :--- | :--- | :--- | :--------- | :--------- | | Nonperforming Loans | $49,247 | $46,263 | $34,540 | 42.6 % | 6.5 % | | Nonperforming Assets | 66,125 | 64,263 | 55,832 | 18.4 % | 2.9 % | | Criticized and Classified Loans | 72,005 | 89,673 | 76,485 | (5.9) % | (19.7) % | | NPAs/Loans & OREO (%) | 0.99 | 0.95 | 0.82 | 17 bps | 4 bps | | ACLs/Loans (%) | 0.62 | 0.59 | 0.61 | 1 bp | 3 bps | | ACLs/NPLs (%) | 83.76 | 86.54 | 120.58 | (36.82) bps | (2.78) bps | | NCOs/Avg Loans (%) | 0.15 | 0.27 | (0.01) | 16 bps | (12) bps | - Period end net loans totaled **$6.7 billion**, down **1.0%** YoY and **0.5%** QoQ. Total loan closings were **$159.1 million** in 2Q25, up **26.3%** YoY but down **8.6%** QoQ. The loan pipeline decreased **44.8%** YoY and **14.4%** QoQ to **$181.0 million**[10](index=10&type=chunk)[21](index=21&type=chunk) - Average CDs totaled **$2.5 billion**, up **1.4%** YoY, but down **4.6%** QoQ; approximately **$391.2 million** of retail CDs are due to mature at an average rate of **3.93%** in 3Q25[10](index=10&type=chunk)[21](index=21&type=chunk) - The Company paid a dividend of **$0.22** per share in 2Q25[21](index=21&type=chunk) [Corporate Information](index=8&type=section&id=Corporate%20Information) This section provides details on upcoming earnings calls, an overview of Flushing Financial Corporation, and the standard safe harbor statement regarding forward-looking information [Conference Call Information](index=8&type=section&id=Conference%20Call%20Information) This section provides details on the upcoming Third Quarter 2025 earnings release and conference call, as well as information for the Second Quarter 2025 conference call - Third Quarter 2025 financial results planned for release after market close on October 28, 2025, followed by a conference call on October 29, 2025, at 9:30 AM (ET)[24](index=24&type=chunk) - A conference call to discuss Second Quarter 2025 results and strategy was hosted on Friday, July 25, 2025, at 11:00 AM (ET)[28](index=28&type=chunk) [About Flushing Financial Corporation](index=8&type=section&id=About%20Flushing%20Financial%20Corporation) Flushing Financial Corporation is the holding company for Flushing Bank, an FDIC-insured commercial bank operating in New York, offering comprehensive financial services - Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank[25](index=25&type=chunk) - The Bank operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island, offering deposit, loan, equipment finance, and cash management services[25](index=25&type=chunk) - The Bank is uniquely different by rewarding customers with personalized attention and bankers who can communicate in the languages prevalent within multicultural markets[25](index=25&type=chunk) - As an Equal Housing Lender and leader in real estate lending, the Bank creates mortgage solutions for real estate owners and property managers[25](index=25&type=chunk) [Safe Harbor Statement](index=8&type=section&id=Safe%20Harbor%20Statement) This statement advises that the press release contains forward-looking statements, which are inherently subject to risks and uncertainties, and the company has no obligation to update them - Statements relating to plans, strategies, economic performance, and trends are forward-looking statements[27](index=27&type=chunk) - Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated[27](index=27&type=chunk) - The Company has no obligation to update these forward-looking statements[27](index=27&type=chunk) [Unaudited Financial Tables and Reconciliations](index=9&type=section&id=Unaudited%20Financial%20Tables%20and%20Reconciliations) This section provides detailed unaudited financial tables, including performance ratios, average balances, income statements, and reconciliations of GAAP to core metrics [Financial Highlights](index=9&type=section&id=FINANCIAL%20HIGHLIGHTS) This section provides a comprehensive overview of key performance ratios, average balances, credit quality metrics, and capital ratios for various periods Selected Performance Ratios (2Q25) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets (%) | 0.64 | (0.43) | (2.17) | 0.39 | 0.24 | 0.10 | 0.21 | | Return on average equity (%) | 8.00 | (5.36) | (29.24) | 5.30 | 3.19 | 1.22 | 2.69 | | Yield on average interest-earning assets (2) (%) | 5.59 | 5.51 | 5.60 | 5.63 | 5.43 | 5.55 | 5.37 | | Cost of average interest-bearing liabilities (%) | 3.58 | 3.50 | 3.75 | 4.10 | 3.95 | 3.54 | 3.89 | | Net interest margin (2) (%) | 2.54 | 2.51 | 2.39 | 2.10 | 2.05 | 2.52 | 2.06 | | Efficiency ratio (3) | 67.69 | 72.21 | 79.01 | 77.20 | 82.57 | 69.93 | 84.31 | Selected Balance Sheet Averages ($MM) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :-------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total loans, net | $6,678 | $6,672 | $6,780 | $6,737 | $6,748 | $6,675 | $6,776 | | Total deposits | $7,607 | $7,561 | $7,450 | $7,464 | $7,196 | $7,584 | $7,139 | | Stockholders' equity | $709,839 | $731,592 | $673,588 | $672,762 | $667,557 | $720,656 | $668,371 | Selected Capital Ratios (%) | Metric | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tier 1 leverage capital | 8.31 | 8.12 | 8.04 | 7.91 | 8.18 | 8.31 | 8.18 | | Common equity Tier 1 risk based capital | 10.41 | 10.17 | 10.13 | 10.16 | 10.22 | 10.41 | 10.22 | | Total risk-based capital | 14.57 | 14.31 | 14.23 | 14.24 | 14.38 | 14.57 | 14.38 | | Tangible common equity to tangible assets | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 | 8.04 | 7.12 | [Consolidated Statements of Income (Loss)](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(LOSS)) This section presents the detailed income statement for the three and six months ended June 30, 2025, and comparative periods, showing interest income and expense, noninterest income and expense, and net income (loss) Consolidated Statements of Income (Loss) ($000s) | Metric | 2Q25 | 1Q25 | 2Q24 | 1H25 | 1H24 | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | | Interest and fees on loans | $95,005 | $93,032 | $92,728 | $188,037 | $185,687 | | Total interest and dividend income | $117,402 | $116,536 | $113,230 | $233,938 | $222,729 | | Total interest expense | $64,193 | $63,547 | $70,454 | $127,740 | $137,556 | | Net Interest Income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Provision for credit losses | $4,194 | $4,318 | $809 | $8,512 | $1,401 | | Total noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Total noninterest expense | $40,356 | $59,676 | $39,047 | $100,032 | $78,939 | | Net Income (Loss) | $14,203 | ($9,796) | $5,322 | $4,407 | $8,906 | | Diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Dividends per common share | $0.22 | $0.22 | $0.22 | $0.44 | $0.44 | [Consolidated Statements of Financial Condition](index=13&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20CONDITION) This section details the company's assets, liabilities, and stockholders' equity at various quarter-end dates, providing a snapshot of its financial position Consolidated Statements of Financial Condition ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total assets | $8,776,524 | $9,008,396 | $9,097,240 | | Net loans | $6,668,354 | $6,701,798 | $6,735,378 | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | | Borrowed funds | $600,171 | $421,542 | $1,316,565 | | Total liabilities | $8,070,147 | $8,305,545 | $8,431,918 | | Total stockholders' equity | $706,377 | $702,851 | $665,322 | [Average Balance Sheets](index=14&type=section&id=AVERAGE%20BALANCE%20SHEETS) This section presents average balances for interest-earning assets, total assets, interest-bearing liabilities, and total liabilities for the three and six months ended June 30, 2025, and comparative periods Average Balance Sheets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total loans, net | $6,678,494 | $6,671,922 | $6,748,140 | $6,675,226 | $6,776,128 | | Total interest-earning assets | $8,402,582 | $8,468,913 | $8,354,994 | $8,435,565 | $8,295,076 | | Total assets | $8,918,075 | $9,015,880 | $8,830,665 | $8,966,707 | $8,769,085 | | Total deposits | $7,607,080 | $7,560,956 | $7,195,940 | $7,584,144 | $7,138,720 | | Total interest-bearing liabilities | $7,176,399 | $7,261,100 | $7,140,068 | $7,218,514 | $7,077,498 | | Equity | $709,839 | $731,592 | $667,557 | $720,656 | $668,371 | [Net Interest Income and Net Interest Margin](index=15&type=section&id=NET%20INTEREST%20INCOME%20AND%20NET%20INTEREST%20MARGIN) This section provides a detailed breakdown of interest income and expense, net interest income, and net interest margin, including tax-equivalent yields and costs for various asset and liability categories Net Interest Income and Margin (Tax Equivalent) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Total interest-earning assets yield (%) | 5.59 | 5.51 | 5.43 | 5.55 | 5.37 | | Total interest-bearing liabilities cost (%) | 3.58 | 3.50 | 3.95 | 3.54 | 3.89 | | Net interest rate spread (tax equivalent) (%) | 2.01 | 2.01 | 1.48 | 2.01 | 1.48 | | Net interest margin (tax equivalent) (%) | 2.54 | 2.51 | 2.05 | 2.52 | 2.06 | [Deposit and Loan Composition](index=17&type=section&id=DEPOSIT%20and%20LOAN%20COMPOSITION) This section details the composition of deposits by type (noninterest-bearing, CDs, savings, money market, NOW accounts) and loans by category (multifamily, commercial real estate, one-to-four family, construction, SBA, commercial business) at various quarter-end dates Deposit Composition ($000s) | Deposit Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Noninterest bearing | $899,602 | $863,714 | $825,327 | 4.2% | 9.0% | | Certificate of deposit accounts | $2,452,624 | $2,592,026 | $2,435,894 | (5.4)% | 0.7% | | NOW accounts | $2,174,124 | $2,393,482 | $1,774,268 | (9.2)% | 22.5% | | Total deposits | $7,289,352 | $7,718,218 | $6,906,863 | (5.6)% | 5.5% | Loan Composition ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 2Q25 vs. 1Q25 % Change | 2Q25 vs. 2Q24 % Change | | :-------------------------- | :------------ | :------------- | :------------ | :--------------------- | :--------------------- | | Multifamily residential | $2,487,610 | $2,531,628 | $2,631,751 | (1.7)% | (5.5)% | | Commercial real estate | $1,987,523 | $1,953,710 | $1,894,509 | 1.7% | 4.9% | | Mortgage loans (Total) | $5,274,385 | $5,319,866 | $5,371,647 | (0.9)% | (1.8)% | | Commercial Business loans (Total) | $1,423,265 | $1,411,310 | $1,403,668 | 0.8% | 1.4% | | Gross loans | $6,697,650 | $6,731,176 | $6,775,315 | (0.5)% | (1.1)% | [Loan Closings and Rates](index=18&type=section&id=LOAN%20CLOSINGS%20and%20RATES) This section provides data on loan closings by type and the weighted average rates on new loan originations for recent quarters, offering insights into lending activity and pricing trends Loan Closings ($000s) | Loan Type | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :-------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Mortgage loans | $71,998 | $84,422 | $57,802 | $156,420 | $134,831 | | Commercial Business loans | $87,178 | $89,654 | $68,162 | $176,832 | $121,117 | | Total Closings | $159,176 | $174,076 | $125,964 | $333,252 | $255,948 | Weighted Average Rate on Loan Closings (%) | Loan type | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Mortgage loans | 6.87 | 6.68 | 7.58 | | Commercial Business loans | 7.25 | 7.28 | 7.94 | | Total loans | 7.08 | 6.99 | 7.77 | [Asset Quality](index=19&type=section&id=ASSET%20QUALITY) This section details the allowance for credit losses, net loan charge-offs (recoveries), and nonperforming assets, including nonaccrual loans and nonperforming asset ratios, providing insight into the health of the loan portfolio Allowance for Credit Losses ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | Allowance for credit losses - loans (Ending balance) | $41,247 | $40,037 | $41,648 | $41,247 | $41,648 | | Total net loan charge-offs (recoveries) | $2,549 | $4,427 | ($92) | $6,976 | ($88) | | Provision (benefit) for loan losses | $3,759 | $4,312 | $804 | $8,071 | $1,399 | | Allowance for credit losses - loans to gross loans (%) | 0.62 | 0.59 | 0.61 | 0.62 | 0.61 | | Net loan charge-offs (recoveries) to average loans (%) | 0.15 | 0.27 | (0.01) | 0.21 | — | Nonperforming Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Total Nonaccrual loans | $49,247 | $46,263 | $34,540 | | Total Nonperforming Assets | $66,125 | $64,263 | $55,832 | | Nonperforming Assets to Total Assets (%) | 0.75 | 0.71 | 0.61 | | Allowance for Credit Losses to NPLs (%) | 83.8 | 86.5 | 120.6 | [Reconciliation of GAAP Earnings (Loss) and Core Earnings](index=20&type=section&id=RECONCILIATION%20OF%20GAAP%20EARNINGS%20(LOSS)%20and%20CORE%20EARNINGS) This section provides a reconciliation of GAAP income (loss) to core income, adjusting for non-cash fair value adjustments, goodwill impairment, and other non-recurring items, and presents core diluted EPS, ROAA, and ROAE to offer an alternative view of the company's performance - Core earnings are non-GAAP measures used to understand the effects of certain interest and noninterest items and provide an alternative view of the Company's performance over time and in comparison to competitors[51](index=51&type=chunk) GAAP to Core Earnings Reconciliation ($000s, except EPS) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP income (loss) before income taxes | $18,936 | ($5,931) | $7,136 | $13,005 | $12,133 | | Impairment of goodwill | — | $17,636 | — | $17,636 | — | | Core income before taxes | $14,845 | $11,827 | $7,311 | $26,672 | $13,160 | | Core net income | $11,162 | $7,931 | $5,456 | $19,093 | $9,768 | | GAAP diluted earnings (loss) per common share | $0.41 | ($0.29) | $0.18 | $0.12 | $0.30 | | Core diluted earnings per common share | $0.32 | $0.23 | $0.18 | $0.55 | $0.33 | | Core return on average assets (%) | 0.50 | 0.35 | 0.25 | 0.43 | 0.22 | | Core return on average equity (%) | 6.29 | 4.34 | 3.27 | 5.30 | 2.92 | [Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue](index=23&type=section&id=RECONCILIATION%20OF%20GAAP%20REVENUE%20and%20PRE-PROVISION%20PRE-TAX%20NET%20REVENUE) This section reconciles GAAP net interest income and noninterest income to core figures, and then calculates GAAP and Core Pre-provision Pre-tax Net Revenue (PPPTNR), providing a measure of underlying profitability before credit losses and taxes GAAP to Core Pre-Provision Pre-Tax Net Revenue ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP Net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core Net interest income | $52,888 | $52,681 | $42,417 | $105,569 | $84,730 | | GAAP Noninterest income (loss) | $10,277 | $5,074 | $4,216 | $15,351 | $7,300 | | Core Noninterest income | $6,031 | $5,420 | $4,159 | $11,451 | $8,077 | | GAAP Noninterest expense | ($40,356) | ($59,676) | ($39,047) | ($100,032) | ($78,939) | | Core Noninterest expense | ($39,880) | ($41,956) | ($38,456) | ($81,836) | ($78,246) | | GAAP Pre-provision pre-tax net (loss) revenue | $23,130 | ($1,613) | $7,945 | $21,517 | $13,534 | | Core Pre-provision pre-tax net revenue | $19,039 | $16,145 | $8,120 | $35,184 | $14,561 | | Efficiency Ratio (%) | 67.7 | 72.2 | 82.6 | 69.9 | 84.3 | [Reconciliation of GAAP Net Interest Income and Net Interest Margin to Core Net Interest Income](index=24&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INTEREST%20INCOME%20and%20NET%20INTEREST%20MARGIN%20to%20CORE%20NET%20INTEREST%20INCOME) This section reconciles GAAP net interest income and net interest margin to their core, fully taxable equivalent (FTE) counterparts, adjusting for fair value adjustments, purchase accounting, and episodic items to provide a clearer view of recurring interest income performance GAAP to Core Net Interest Income and Margin FTE ($000s) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | 1H25 | 1H24 | | :---------------------------------- | :------------ | :------------- | :------------ | :--- | :--- | | GAAP net interest income | $53,209 | $52,989 | $42,776 | $106,198 | $85,173 | | Core net interest income FTE | $52,984 | $52,777 | $42,515 | $105,761 | $84,928 | | Core net interest margin FTE (%) | 2.52 | 2.49 | 2.03 | 2.51 | 2.05 | | Net interest margin FTE excluding episodic items (%) | 2.48 | 2.48 | 2.02 | 2.48 | 2.02 | | Core yield on total loans (%) | 5.65 | 5.52 | 5.47 | 5.59 | 5.46 | [Calculation of Tangible Stockholders' Common Equity to Tangible Assets](index=25&type=section&id=CALCULATION%20OF%20TANGIBLE%20STOCKHOLDERS'%20COMMON%20EQUITY%20to%20TANGIBLE%20ASSETS) This section provides a reconciliation of total equity and total assets to tangible stockholders' common equity and tangible assets, respectively, by deducting goodwill and core deposit intangibles, and presents the tangible common equity to tangible assets ratio, a key measure of capital adequacy - Tangible book value per common share is useful for both investors and management as this measure is commonly used by financial institutions, regulators, and investors to measure the capital adequacy of financial institutions[51](index=51&type=chunk) Tangible Stockholders' Common Equity to Tangible Assets ($000s) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total Equity | $706,377 | $702,851 | $724,539 | $666,891 | $665,322 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Stockholders' Common Equity | $705,437 | $701,822 | $705,780 | $648,035 | $646,364 | | Total Assets | $8,776,524 | $9,008,396 | $9,038,972 | $9,280,886 | $9,097,240 | | Less: Goodwill | — | — | ($17,636) | ($17,636) | ($17,636) | | Less: Core deposit intangibles | ($940) | ($1,029) | ($1,123) | ($1,220) | ($1,322) | | Tangible Assets | $8,775,584 | $9,007,367 | $9,020,213 | $9,262,030 | $9,078,282 | | Tangible Stockholders' Common Equity to Tangible Assets (%) | 8.04 | 7.79 | 7.82 | 7.00 | 7.12 |

Core Viewpoint - Flushing Financial is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Flushing Financial's quarterly earnings is $0.29 per share, reflecting a year-over-year increase of +61.1% [3]. - Revenues are anticipated to reach $58.7 million, which is a 24.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.23% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Flushing Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.90% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Flushing Financial had an earnings surprise of +4.55%, reporting $0.23 per share against an expectation of $0.22 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Flushing Financial does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, suggesting investors should consider other factors before making decisions [17].

Group 1 - The stock of Flushing Financial Corporation (FFIC) is experiencing significant attention due to high implied volatility in the options market, particularly for the Aug 15, 2025 $5 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Flushing Financial's stock price, potentially due to an upcoming event [2] - Flushing Financial currently holds a Zacks Rank 4 (Sell) in the Financial - Savings and Loan industry, which is in the bottom 40% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward [3] Group 2 - The high implied volatility surrounding Flushing Financial may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $9.796 million compared to a net income of $3.684 million for the same period in 2024[10]. - The company’s comprehensive net income (loss) for the period was $(14.234) million, compared to $6.519 million in the prior year[13]. - The Company reported net income of $0.5 million for the three months ended March 31, 2025, compared to $1.0 million for the same period in 2024, reflecting a decrease of 50%[86]. - Income (loss) before income taxes was ($5.9) million for the three months ended March 31, 2025, a decrease of $10.9 million, or 218.7%, from $5.0 million for the same period in 2024[175]. - Diluted earnings per share for the three months ended March 31, 2025, were $(0.29), a decrease of $0.41, or 341.7%, from $0.12 for the same period in 2024[167]. Income and Expenses - Total interest and dividend income increased to $116.536 million, up from $109.499 million year-over-year, reflecting a growth of approximately 6.3%[10]. - Net interest income after provision for credit losses was $48.671 million, compared to $41.805 million in the prior year, representing an increase of about 16.5%[10]. - Non-interest expense rose to $59.676 million, up from $39.892 million, marking an increase of approximately 49.7% year-over-year[10]. - The total provision for income taxes was $3.865 million, compared to $1.313 million in the previous year, indicating an increase of approximately 194%[10]. - Non-interest income increased to $5.074 million from $3.084 million, reflecting a growth of approximately 64.6% year-over-year[10]. Asset and Liability Management - Cash and cash equivalents at the end of the period totaled $271.912 million, an increase from $210.723 million at the end of the same period last year[20]. - The company experienced a net increase in interest-bearing deposits of $475.194 million, compared to an increase of $437.530 million in the previous year[20]. - Total interest-earning assets increased to $8.47 billion for the three months ended March 31, 2025, compared to $8.24 billion for the same period in 2024[206]. - Total interest-bearing liabilities amounted to $7.26 billion as of March 31, 2025, with a total interest expense of $63.5 million[206]. - The ratio of interest-earning assets to interest-bearing liabilities remained stable at 1.17x for both periods[206]. Credit Quality and Loan Performance - The total loans outstanding as of March 31, 2025, amounted to $6.742 billion[58]. - The total amount of non-accrual loans at amortized cost was $58.352 million as of March 31, 2025[54]. - The company had a total of $40.163 million in modified loans for borrowers experiencing financial difficulty as of March 31, 2025[51]. - The total amount of loans across all categories was $6,742,067 thousand, highlighting the company's extensive loan portfolio[63]. - The allowance for credit losses to gross loans stood at 0.59% at March 31, 2025, with non-performing assets at 0.71% of total assets[163]. Securities and Investments - As of March 31, 2025, the total amortized cost of held-to-maturity securities is $51,509,000, with a fair value of $44,670,000, reflecting a gross unrealized loss of $6,839,000[30]. - The total amortized cost of available-for-sale securities is $1,454,886,000, with a fair value of $1,450,144,000, resulting in a gross unrealized loss of $4,742,000[34]. - The company did not sell any securities during the three months ended March 31, 2025, and 2024, maintaining a stable portfolio[43]. - The company believes that unrealized losses on available-for-sale securities are not credit-related and no allowance for credit loss was recorded[37]. - The allowance for credit losses for available-for-sale securities remains unchanged at $2,627,000 as of March 31, 2025[42]. Capital and Regulatory Compliance - The total risk-based capital level is $896,836 thousand, representing 13.35% of assets as of March 31, 2025, compared to 13.11% at December 31, 2024[141]. - The Company’s Tier I (leverage) capital is $856,082 thousand, which is 9.56% of assets as of March 31, 2025, an increase from 9.31% at December 31, 2024[141]. - The Company continues to exceed all regulatory capital requirements, maintaining a Common Equity Tier I risk-based capital of 12.74% as of March 31, 2025[143]. - The cumulative amount of basis adjustments for the portfolio layer method at March 31, 2025, is $0.2 million, down from $2.0 million at December 31, 2024[132]. - The Company maintained portfolio layer hedges on a closed portfolio of loans with a notional amount of $600.0 million as of March 31, 2025, up from $500.0 million at December 31, 2024[123].

Group 1 - Following the last report on Flushing Financial Corporation (FFIC) in February 2025, the stock price has decreased by 10.56% [1] - The market reaction is attributed to concerns over tariffs impacting the company [1]