Financial Data and Key Metrics Changes - The company reported a GAAP EPS of $0.17 and core EPS of $0.10 for Q1 2023, impacted by net interest margin compression and a charge-off of a previously identified credit [43][44] - Average total deposits increased by 2% during the quarter and 6% year-over-year, with a loan to deposit ratio decreasing to 102% from 107% [26][46] - The net interest margin (NIM) declined by 43 basis points to 2.7% during the quarter, with expectations of continued compression as long as the Fed raises rates [29][62] Business Line Data and Key Metrics Changes - The loan portfolio saw a 5% year-over-year increase but was down less than 1% quarter-over-quarter, with loan closings lower than recent run rates [27][46] - Core loan yields increased by 17 basis points during the quarter, with yields on loan closings exceeding those on satisfactions by 113 basis points [27][46] - Non-performing assets declined by 21%, and delinquencies decreased by 16 basis points during the quarter [46][50] Market Data and Key Metrics Changes - The company has $1.2 billion of deposits and $810 million of loans in Asian markets, representing 18% of total deposits with only 3% market share, indicating significant growth opportunities [23] - The digital banking platform continues to grow, with high growth rates in mobile deposit users and digital banking enrollment [24][46] Company Strategy and Development Direction - The company aims to move towards a more interest rate risk-neutral balance sheet, having achieved 40% of this goal [43][62] - Focus on risk-adjusted returns and profitability, with an emphasis on recession-proof industries and tightening discretionary expenses [43][44] - The company is expanding its client base and enhancing customer service to capitalize on market disruptions [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current results but is optimistic about future profitability due to decisive actions taken [43][44] - The expectation is that the NIM will begin to expand once funding costs stabilize and loans continue to reprice higher [29][62] - The company remains comfortable with its low-risk loan portfolio, with over 88% secured by real estate and a debt service coverage ratio of 1.9 times [45][49] Other Important Information - The company has $3.7 billion of available liquidity, which is over three times the amount of uninsured and uncollateralized deposits [21][46] - The investment security portfolio is valued at $886 million, with 53% classified as floating rate [33] Q&A Session Summary Question: How much more in C&I loan participations do you have? - Management confirmed they re-underwrite loans to conservative standards before participation [1] Question: Is the target TCE ratio still around 8%? - Management indicated that buybacks may slow or cease as they are currently below that target [2][89] Question: Where do you think the margin bottoms out? - Management noted intense competition in the market but expects less intensity moving forward [3] Question: What specific areas are being looked at for credit quality? - Management is focused on recession-proof industries and maintaining strong standards in real estate [75] Question: What is the expected impact of the Fed's rate changes on NIM? - Management expects NIM to benefit from contractual repricing of the loan portfolio once the Fed pauses rate increases [98][100]

See Appendix for definitions of Core NII FTE, Core NIM, and Core Loan Yields 32 Book Value and Tangible Book Value Per Share Grow in 2022 $15. 00 $16. 00 $17. 00 $18. 00 $19. 00 $20. 00 $21. 00 $22. 00 $23. 00 $24. 00 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% 15.00% Tangible Book Value Per Share Tangible Common Equity/Tangible Assets Book Value Per Share CET1 Ratio Leverage Ratio 33 See more details in our ESG Report under Investor Relations at FlushingBank.com | --- | --- | --- | --- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Commission file number 001-33013 FLUSHING FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 11-3209278 (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation or organization) 220 RXR Plaza, Uniondale, New York 11556 (Ad ...

Flushing Financial Corporation (NASDAQ:FFIC) Q4 2022 Earnings Conference Call January 27, 2022 9:30 AM ET Company Participants John Buran - President & Chief Executive Officer Susan Cullen - Senior Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants Christopher O'Connell - KBW Manuel Navas - D.A. Davidson Operator Welcome to Flushing Financial Corporation's Fourth Quarter and Full Year 2022 Earnings Conference Call. Hosting the call today are John Buran, President and ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 Commission file number 001-33013 FLUSHING FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 11-3209278 (I.R.S. Employer Identification No.) 220 RXR Plaza, Uniondale, New York ...

Flushing Financial Corporation (NASDAQ:FFIC) Q3 2022 Earnings Conference Call October 26, 2022 9:30 AM ET Company Participants John Buran - President, Chief Executive Officer and Director Susan Cullen - Senior Executive Vice President, Treasurer and Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Christopher O'Connell - KBW Manuel Navas - D.A. Davidson Operator Welcome to Flushing Financial Corporation's Third Quarter 2022 Earnings Conference Call. Hosting the call today ...

Part I – Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements of Flushing Financial Corporation and its subsidiaries for the quarter ended June 30, 2022, including the statements of financial condition, income, comprehensive income, cash flows, and changes in stockholders' equity, along with detailed notes to these financial statements [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total Assets: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $8,339,587 | | Dec 31, 2021 | $8,045,911 | Total Liabilities: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $7,668,775 | | Dec 31, 2021 | $7,366,283 | Total Stockholders' Equity: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $670,812 | | Dec 31, 2021 | $679,628 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net Income and EPS: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income (in thousands) | $25,035 | $19,258 | $43,254 | $38,297 | | Basic EPS | $0.81 | $0.61 | $1.39 | $1.21 | | Diluted EPS | $0.81 | $0.61 | $1.39 | $1.21 | Net Interest Income: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Interest Income (in thousands) | $64,730 | $61,039 | $128,209 | $121,931 | Provision (benefit) for credit losses: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision (benefit) (in thousands) | $1,590 | $(1,598) | $2,948 | $1,222 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Net Income: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Comprehensive Net Income (in thousands) | $9,275 | $21,544 | $18,674 | $46,146 | Total Other Comprehensive Income (Loss), net of tax: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Other Comprehensive Income (Loss) (in thousands) | $(15,760) | $2,286 | $(24,580) | $7,849 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net Cash Provided by Operating Activities: | Period | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities (in thousands) | $44,642 | $35,975 | Net Cash Used in Investing Activities: | Period | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Used in Investing Activities (in thousands) | $(303,491) | $(197,804) | Net Cash Provided by Financing Activities: | Period | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Financing Activities (in thousands) | $314,152 | $150,412 | Net Increase in Cash and Cash Equivalents: | Period | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net Increase (Decrease) in Cash and Cash Equivalents (in thousands) | $55,303 | $(11,417) | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Total Stockholders' Equity: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $670,812 | | March 31, 2022 | $675,813 | | Dec 31, 2021 | $679,628 | | June 30, 2021 | $655,167 | | March 31, 2021 | $639,201 | | Dec 31, 2020 | $618,997 | - Key changes in Stockholders' Equity for the six months ended June 30, 2022, include net income of **$43.3 million**, treasury share purchases of **$(17.0) million**, common stock dividends of **$(13.6) million**, and an other comprehensive loss of **$(24.6) million**[19](index=19&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) - Flushing Financial Corporation's primary business is the operation of its wholly-owned subsidiary, Flushing Bank[21](index=21&type=chunk) - The consolidated financial statements include the Holding Company and its direct and indirect wholly-owned subsidiaries, excluding certain special purpose business trusts[22](index=22&type=chunk) - The statements are prepared in accordance with GAAP and SEC regulations for interim financial statements[23](index=23&type=chunk)[24](index=24&type=chunk) [2. Use of Estimates](index=10&type=section&id=2.%20Use%20of%20Estimates) - Management's estimates and assumptions are critical for financial statements, particularly for the allowance for credit losses, goodwill impairment, deferred tax assets valuation, and fair value of financial instruments[26](index=26&type=chunk) [3. Earnings Per Share](index=11&type=section&id=3.%20Earnings%20Per%20Share) Basic and Diluted Earnings Per Common Share: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic EPS | $0.81 | $0.61 | $1.39 | $1.21 | | Diluted EPS | $0.81 | $0.61 | $1.39 | $1.21 | - There were no common stock equivalents for the three and six months ended June 30, 2022 and 2021[28](index=28&type=chunk) [4. Securities](index=11&type=section&id=4.%20Securities) - The Company held no trading securities at June 30, 2022, and December 31, 2021. Securities available for sale are recorded at fair value, while held-to-maturity (HTM) securities are at amortized cost[29](index=29&type=chunk) Securities Held-to-Maturity at June 30, 2022: | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | Gross Unrecognized Losses (in thousands) | | :------------------- | :---------------------------- | :------------------------ | :--------------------------------------- | | Municipals | $67,315 | $57,064 | $10,251 | | FNMA | $7,885 | $7,496 | $389 | | Total | $74,115 | $64,560 | $10,640 | Securities Available for Sale at June 30, 2022: | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | Gross Unrealized Losses (in thousands) | | :--------------------------- | :---------------------------- | :------------------------ | :--------------------------------------- | | U.S. government agencies | $84,463 | $83,039 | $1,434 | | Corporate | $133,927 | $124,468 | $9,531 | | Collateralized loan obligations | $131,094 | $125,978 | $5,116 | | Mortgage-backed securities | $567,643 | $510,934 | $56,753 | | Total | $930,362 | $857,654 | $72,834 | - The Company does not intend to sell securities with unrealized losses and is unlikely to be required to sell them before recovery of amortized cost[44](index=44&type=chunk) - Allowance for credit losses for HTM debt securities was **$1.085 million** at June 30, 2022, an increase from **$0.862 million** at December 31, 2021[46](index=46&type=chunk)[48](index=48&type=chunk) - No securities were sold during the three and six months ended June 30, 2022[48](index=48&type=chunk) [5. Loans](index=17&type=section&id=5.%20Loans) - Loans are reported net of unearned income, charge-offs, deferred fees, and unamortized premiums/discounts. Interest is recognized on an accrual basis, generally discontinued after 90 days delinquency[51](index=51&type=chunk)[52](index=52&type=chunk) - At June 30, 2022, the Company had five active CARES Act forbearances totaling approximately **$26.7 million**, a decrease from 20 forbearances totaling **$71.9 million** at December 31, 2021[53](index=53&type=chunk) - The Allowance for Credit Losses (ACL) on loans was **$39.4 million** at June 30, 2022, up from **$37.1 million** at December 31, 2021[58](index=58&type=chunk) - The ACL-loans represented **0.58% of gross loans** and **141.1% of non-performing loans** at June 30, 2022, compared to **0.56%** and **248.7%** at December 31, 2021[58](index=58&type=chunk) - Provision for credit losses on loans was **$1.5 million** for the three months ended June 30, 2022 (vs. **$1.5 million benefit** in 2021) and **$2.7 million** for the six months ended June 30, 2022 (vs. **$1.3 million** in 2021), driven by loan growth and ongoing environmental uncertainty[58](index=58&type=chunk) - Two commercial business and other loans classified as Troubled Debt Restructured (TDRs) totaling **$2.5 million** defaulted within 12 months of modification during the three and six months ended June 30, 2022[62](index=62&type=chunk) Performing TDR Loans at Amortized Cost: | Loan Type | June 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :---------------------------- | :--------------------------- | :-------------------------- | | Multi-family residential | $1,656 | $1,690 | | Commercial real estate | $7,572 | $7,572 | | One-to-four family - mixed-use property | $1,254 | $1,636 | | One-to-four family - residential | $260 | $483 | | Small Business Administration | $269 | $0 | | Commercial business and other | $3,771 | $1,381 | | **Total Performing** | **$14,782** | **$12,762** | Non-Performing TDR Loans at Amortized Cost (June 30, 2022): | Loan Type | Amortized Cost (in thousands) | | :---------------------------- | :---------------------------- | | Commercial business and other | $2,453 | | **Total Non-Performing** | **$2,453** | Non-Accrual Loans at Amortized Cost (June 30, 2022): | Loan Type | Amortized Cost (in thousands) | | :---------------------------- | :---------------------------- | | Multi-family residential | $3,707 | | Commercial real estate | $273 | | One-to-four family - mixed-use property | $1,049 | | One-to-four family - residential | $4,708 | | Small Business Administration | $951 | | Construction | $856 | | Commercial business and other | $3,330 | | **Total** | **$14,874** | - Total foregone interest on non-accrual and TDR loans was **$306 thousand** for the three months ended June 30, 2022, and **$523 thousand** for the six months ended June 30, 2022[72](index=72&type=chunk) - Commitments to extend credit (off-balance sheet) totaled **$542.6 million** at June 30, 2022, an increase from **$472.9 million** at December 31, 2021[86](index=86&type=chunk) - Allowance for off-balance sheet credit losses was **$1.444 million** at June 30, 2022, compared to **$1.209 million** at December 31, 2021[87](index=87&type=chunk) [6. Loans held for sale](index=30&type=section&id=6.%20Loans%20held%20for%20sale) - The Bank did not have any loans held for sale at June 30, 2022, and December 31, 2021[91](index=91&type=chunk) [7. Leases](index=31&type=section&id=7.%20Leases) - The Company has 28 operating leases for branches/offices, 10 for vehicles, and one for equipment, with terms ranging from six months to approximately 14 years[95](index=95&type=chunk) Operating Lease Information: | Metric | June 30, 2022 | Dec 31, 2021 | | :----------------------------------- | :------------ | :----------- | | Operating lease ROU asset (in thousands) | $46,687 | $50,200 | | Operating lease liability (in thousands) | $50,346 | $54,155 | | Weighted-average remaining lease term | 7.0 years | 7.4 years | | Weighted average discount rate | 3.1% | 3.1% | - Total lease cost for the three months ended June 30, 2022, was **$2.399 million**, and for the six months ended June 30, 2022, was **$4.781 million**[97](index=97&type=chunk)[99](index=99&type=chunk) [8. Stock-Based Compensation](index=32&type=section&id=8.%20Stock-Based%20Compensation) - The Company's long-term incentive program includes grants of performance-based restricted stock units (PRSUs) and time-based restricted stock units (RSUs)[102](index=102&type=chunk) - As of June 30, 2022, **966,785 shares** were available for future issuance under the 2014 Omnibus Plan[104](index=104&type=chunk) - Stock-based compensation costs (including phantom stock awards) were **$0.9 million** for the three months ended June 30, 2022 (vs. **$1.1 million** in 2021) and **$4.9 million** for the six months ended June 30, 2022 (vs. **$5.2 million** in 2021)[105](index=105&type=chunk) RSU and PRSU Awards Activity (Six Months Ended June 30, 2022): | Metric | RSU Awards (Shares) | PRSU Awards (Shares) | | :----------------------------------- | :------------------ | :------------------- | | Non-vested at Dec 31, 2021 | 310,430 | 102,920 | | Granted | 212,811 | 63,250 | | Vested | (219,835) | (71,390) | | Forfeited | (1,695) | — | | Non-vested at June 30, 2022 | 301,711 | 94,780 | - Unrecognized compensation cost related to RSU and PRSU awards was **$6.2 million** as of June 30, 2022, expected to be recognized over a weighted-average period of **2.6 years**[107](index=107&type=chunk) - Phantom Stock Plan outstanding shares were **155,159** at June 30, 2022, with a fair value of **$21.26 per share**[110](index=110&type=chunk) [9. Pension and Other Postretirement Benefit Plans](index=34&type=section&id=9.%20Pension%20and%20Other%20Postretirement%20Benefit%20Plans) Net Employee Pension Benefit: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Employee Pension Benefit (in thousands) | $(119) | $(24) | $(237) | $(48) | Net Outside Director Pension Expense: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Outside Director Pension Expense (in thousands) | $8 | $11 | $15 | $22 | Net Other Postretirement Expense: | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Other Postretirement Expense (in thousands) | $129 | $126 | $259 | $235 | - The Company expects to contribute **$0.3 million** to each of the Outside Director Pension Plan and Other Postretirement Benefit Plans in 2022, with **$72,000** and **$21,000** already contributed, respectively, as of June 30, 2022. No contribution is expected for the Employee Pension Plan[114](index=114&type=chunk) [10. Fair Value of Financial Instruments](index=35&type=section&id=10.%20Fair%20Value%20of%20Financial%20Instruments) - The Company carries certain financial assets and liabilities at fair value under the fair value option, totaling **$13.6 million** in assets and **$55.4 million** in liabilities at June 30, 2022[115](index=115&type=chunk) Net Gain (Loss) from Fair Value Adjustments (Fair Value Option): | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net gain (loss) (in thousands) | $2,533 | $(5,353) | $724 | $(6,989) | - Fair value measurements are categorized into Level 1 (quoted market prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - At June 30, 2022, Level 3 assets included trust preferred securities (**$1.662 million**) and Level 3 liabilities included junior subordinated debentures (**$55.352 million**)[127](index=127&type=chunk) - Non-accrual loans are carried at fair value on a non-recurring basis, totaling **$22.502 million** at June 30, 2022, and **$11.026 million** at December 31, 2021[132](index=132&type=chunk) [11. Derivative Financial Instruments](index=43&type=section&id=11.%20Derivative%20Financial%20Instruments) - The Company uses interest rate swaps to mitigate exposure to rising interest rates on fixed-rate loans (**$289.2 million** at June 30, 2022) and short-term advances/brokered deposits (**$871.5 million** at June 30, 2022), and to facilitate risk management for loan customers (**$224.6 million** at June 30, 2022)[140](index=140&type=chunk)[142](index=142&type=chunk) - Derivatives are carried at fair value, with changes accounted for based on hedge designation[144](index=144&type=chunk) - Notional amounts of derivative financial instruments at June 30, 2022, include **$871.5 million** for cash flow hedges, **$289.2 million** for fair value hedges, and **$224.6 million** not designated as hedges[145](index=145&type=chunk) - For cash flow hedges, **$2.4 million** was reclassified from accumulated other comprehensive loss to interest expense for the three months ended June 30, 2022[146](index=146&type=chunk) - The estimated amount to be reclassified from accumulated other comprehensive loss in the next 12 months is **$5.7 million**[146](index=146&type=chunk) Total Derivatives Fair Value: | Date | Fair Value (in thousands) | | :------------- | :------------------------ | | June 30, 2022 | $40,727 | | Dec 31, 2021 | $(14,388) | [12. Accumulated Other Comprehensive Income (Loss)](index=47&type=section&id=12.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) Accumulated Other Comprehensive Income (Loss) Ending Balance, Net of Tax: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $(31,264) | | March 31, 2022 | $(15,504) | | June 30, 2021 | $(8,417) | | Dec 31, 2020 | $(16,266) | - Net current period other comprehensive income (loss), net of tax, was **$(15.760) million** for the three months ended June 30, 2022, and **$(24.580) million** for the six months ended June 30, 2022[155](index=155&type=chunk)[157](index=157&type=chunk) - Significant reclassifications from AOCI include interest rate swaps affecting interest expense and pension items affecting other expense[160](index=160&type=chunk)[162](index=162&type=chunk) [13. Regulatory Capital](index=55&type=section&id=13.%20Regulatory%20Capital) - Both the Bank and the Holding Company remain 'well-capitalized' under current capital regulations and exceed all regulatory capital requirements as of June 30, 2022[164](index=164&type=chunk)[166](index=166&type=chunk) Bank Capital Ratios (June 30, 2022): | Capital Ratio | Capital Level | Requirement to be Well-Capitalized | Excess | | :----------------------------- | :------------ | :--------------------------------- | :------------ | | Tier I (leverage) capital | 10.28% | 5.00% | 5.28% | | Common Equity Tier I risk-based capital | 13.09% | 6.50% | 6.59% | | Tier I risk-based capital | 13.09% | 8.00% | 5.09% | | Total risk-based capital | 13.67% | 10.00% | 3.67% | - The Capital Conservation Buffer (CCB) for the Bank was **5.67%** at June 30, 2022 (vs. **6.13%** at Dec 31, 2021)[164](index=164&type=chunk) - The CCB for the Holding Company was **5.34%** at June 30, 2022 (vs. **5.75%** at Dec 31, 2021)[166](index=166&type=chunk) [14. New Authoritative Accounting Pronouncements](index=56&type=section&id=14.%20New%20Authoritative%20Accounting%20Pronouncements) - FASB issued ASU No. 2022-02, 'Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,' effective for fiscal years beginning after December 15, 2022, which replaces TDR recognition guidance for CECL adopters and enhances disclosures. The Company is evaluating its impact[170](index=170&type=chunk) - FASB issued ASU No. 2021-01 and ASU No. 2020-04, 'Reference Rate Reform' (Topic 848), providing optional expedients for contract modifications and hedge accounting related to the LIBOR transition, effective through December 31, 2022. The Company is evaluating the material effects[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, comparing the three and six months ended June 30, 2022, to the corresponding periods in 2021. It highlights key financial metrics, loan portfolio performance, asset quality, liquidity, and interest rate risk management [Executive Summary](index=59&type=section&id=Executive%20Summary) - Flushing Financial Corporation operates Flushing Bank, a full-service New York State-chartered commercial bank, primarily attracting retail deposits and investing in multi-family residential, commercial business, commercial real estate, and one-to-four family mixed-use property loans[179](index=179&type=chunk) - Net income for the three months ended June 30, 2022, was **$25.0 million**, or **$0.81 diluted EPS**, driven by record net interest income of **$64.7 million**[183](index=183&type=chunk) - Net interest margin was **3.35%** for the three months ended June 30, 2022, a slight decrease of one basis point from the prior quarter. Excluding certain adjustments, it increased two basis points to **3.33%**[184](index=184&type=chunk) - The loan portfolio is over **87% collateralized by real estate** with an average loan-to-value of less than **38%**[185](index=185&type=chunk) - ACL - loans stood at **58 basis points of gross loans** and **141.1% of non-performing loans** at June 30, 2022. Non-performing assets were **59 basis points of total assets**[185](index=185&type=chunk) - The Bank and Company remain well-capitalized under current capital regulations[186](index=186&type=chunk) [Comparison of Operating Results (Three Months Ended June 30)](index=60&type=section&id=COMPARISON%20OF%20OPERATING%20RESULTS%20FOR%20THE%20THREE%20MONTHS%20ENDED%20JUNE%2030%2C%202022%20AND%202021) [General (Three Months)](index=60&type=section&id=General_3M) Net Income and EPS (3 Months Ended June 30): | Metric | 2022 | 2021 | Change ($) | Change (%) | | :--------------------------- | :---------- | :---------- | :---------- | :--------- | | Net Income (in millions) | $25.0 | $19.3 | $5.8 | 30.0% | | Diluted EPS | $0.81 | $0.61 | $0.20 | 32.8% | Return on Average Equity and Assets (3 Months Ended June 30): | Metric | 2022 | 2021 | | :--------------------------- | :------ | :------ | | Return on average equity | 15.00% | 11.95% | | Return on average assets | 1.22% | 0.93% | [Interest Income (Three Months)](index=60&type=section&id=Interest%20Income_3M) - Interest and dividend income increased by **$2.5 million (3.6%)** to **$74.3 million** for the three months ended June 30, 2022, from **$71.7 million** in the prior year[189](index=189&type=chunk) - The yield on interest-earning assets increased by **16 basis points** to **3.85%** in Q2 2022 from **3.69%** in Q2 2021[189](index=189&type=chunk) - Excluding certain adjustments, the yield on total loans, net, increased **seven basis points** to **4.01%** in Q2 2022 from **3.94%** in Q2 2021[189](index=189&type=chunk) [Interest Expense (Three Months)](index=61&type=section&id=Interest%20Expense_3M) - Interest expense decreased by **$1.1 million (10.7%)** to **$9.6 million** for the three months ended June 30, 2022, from **$10.7 million** in the prior year[191](index=191&type=chunk) - The average cost of interest-bearing liabilities declined by **six basis points** to **0.60%** in Q2 2022 from **0.66%** in Q2 2021[191](index=191&type=chunk) - The average balance of interest-bearing liabilities decreased by **$195.5 million** to **$6,337.4 million**[191](index=191&type=chunk) [Net Interest Income (Three Months)](index=61&type=section&id=Net%20Interest%20Income_3M) - Net interest income increased by **$3.7 million (6.0%)** to **$64.7 million** for the three months ended June 30, 2022, from **$61.0 million** in the prior year[192](index=192&type=chunk) - Net interest-earning assets grew by **$146.0 million** year-over-year to **$1,403.3 million**[192](index=192&type=chunk) - Net interest margin increased by **21 basis points** to **3.35%** during the same period[192](index=192&type=chunk) - Excluding prepayment penalties, hedge adjustments, and purchase accounting, net interest margin increased **18 basis points** to **3.22%** in Q2 2022 from **3.04%** in Q2 2021[192](index=192&type=chunk) [Provision (Benefit) for Credit Losses (Three Months)](index=61&type=section&id=Provision%20%28Benefit%29%20for%20Credit%20Losses_3M) - Provision for credit losses was **$1.6 million** for the three months ended June 30, 2022, compared to a benefit of **$1.6 million** for the three months ended June 30, 2021[193](index=193&type=chunk) - Non-performing assets increased by **$34.8 million** to **$48.9 million** at June 30, 2022, primarily due to the addition of one non-accrual investment security and three non-accrual commercial business loans[193](index=193&type=chunk) - The current average loan-to-value ratio for non-performing assets collateralized by real estate was **50.7%** at June 30, 2022[193](index=193&type=chunk) [Non-Interest Income (Loss) (Three Months)](index=61&type=section&id=Non-Interest%20Income%20%28Loss%29_3M) - Non-interest income increased by **$10.6 million** to **$7.4 million** for the three months ended June 30, 2022, from a loss of **$3.2 million** in the prior year comparable period[194](index=194&type=chunk) - The increase was primarily due to net gains from fair value adjustments (**$2.5 million** in Q2 2022 vs. **$6.5 million net losses** in Q2 2021) and **$1.5 million** in life insurance proceeds in Q2 2022[194](index=194&type=chunk) [Non-Interest Expense (Three Months)](index=61&type=section&id=Non-Interest%20Expense_3M) - Non-interest expense increased by **$1.5 million (4.4%)** to **$35.5 million** for the three months ended June 30, 2022, from **$34.0 million** in the prior year, primarily due to the growth of the Company[195](index=195&type=chunk) [Income before Income Taxes (Three Months)](index=61&type=section&id=Income%20before%20Income%20Taxes_3M) - Income before income taxes increased by **$9.6 million (37.6%)** to **$35.0 million** for the three months ended June 30, 2022, from **$25.4 million** in the prior year[196](index=196&type=chunk) [Provision for Income Taxes (Three Months)](index=61&type=section&id=Provision%20for%20Income%20Taxes_3M) - The provision for income taxes was **$9.9 million** for the three months ended June 30, 2022, an increase of **$3.8 million (61.4%)** from **$6.2 million** in the prior year[197](index=197&type=chunk) - The effective tax rate increased to **28.4%** in Q2 2022 from **24.2%** in Q2 2021, primarily due to the loss of certain New York State and City tax deductions[197](index=197&type=chunk) [Comparison of Operating Results (Six Months Ended June 30)](index=62&type=section&id=COMPARISON%20OF%20OPERATING%20RESULTS%20FOR%20THE%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202022%20AND%202021) [General (Six Months)](index=62&type=section&id=General_6M) Net Income and EPS (6 Months Ended June 30): | Metric | 2022 | 2021 | Change ($) | Change (%) | | :--------------------------- | :---------- | :---------- | :---------- | :--------- | | Net Income (in millions) | $43.3 | $38.3 | $5.0 | 12.9% | | Diluted EPS | $1.39 | $1.21 | $0.18 | 14.9% | Return on Average Equity and Assets (6 Months Ended June 30): | Metric | 2022 | 2021 | | :--------------------------- | :------ | :------ | | Return on average equity | 12.91% | 12.11% | | Return on average assets | 1.06% | 0.93% | [Interest Income (Six Months)](index=62&type=section&id=Interest%20Income_6M) - Interest and dividend income increased by **$1.7 million (1.2%)** to **$145.6 million** for the six months ended June 30, 2022, from **$143.9 million** in the prior year[201](index=201&type=chunk) - The yield on interest-earning assets increased by **8 basis points** to **3.81%** in H1 2022 from **3.73%** in H1 2021[201](index=201&type=chunk) - Excluding certain adjustments, the yield on total loans, net, increased **three basis points** to **3.97%** in H1 2022 from **3.94%** in H1 2021[201](index=201&type=chunk) [Interest Expense (Six Months)](index=62&type=section&id=Interest%20Expense_6M) - Interest expense decreased by **$4.5 million (20.7%)** to **$17.4 million** for the six months ended June 30, 2022, from **$21.9 million** in the prior year[202](index=202&type=chunk) - The average cost of interest-bearing liabilities declined by **12 basis points** to **0.55%** in H1 2022 from **0.67%** in H1 2021[202](index=202&type=chunk) - The average balance of interest-bearing liabilities decreased by **$226.3 million** to **$6,279.3 million**[202](index=202&type=chunk) [Net Interest Income (Six Months)](index=62&type=section&id=Net%20Interest%20Income_6M) - Net interest income increased by **$6.3 million (5.1%)** to **$128.2 million** for the six months ended June 30, 2022, from **$121.9 million** in the prior year[203](index=203&type=chunk) - Net interest margin increased by **20 basis points** to **3.36%** during the six months ended June 30, 2022[203](index=203&type=chunk) - Net interest-earning assets increased by **$153.2 million** to **$1,376.7 million** for the same period[203](index=203&type=chunk) - Excluding prepayment penalties, hedge adjustments, and purchase accounting, net interest margin increased **20 basis points** to **3.22%** in H1 2022 from **3.02%** in H1 2021[203](index=203&type=chunk) [Provision for Credit Losses (Six Months)](index=62&type=section&id=Provision%20for%20Credit%20Losses_6M) - Provision for credit losses was **$2.9 million** for the six months ended June 30, 2022, compared to **$1.2 million** for the six months ended June 30, 2021[204](index=204&type=chunk) - Non-performing assets increased by **$34.0 million** to **$48.9 million** from **$14.9 million** at December 31, 2021, primarily due to the addition of one non-accrual investment security and three non-accrual commercial business loans[204](index=204&type=chunk) - The current average loan-to-value ratio for non-performing assets collateralized by real estate was **50.7%** at June 30, 2022[204](index=204&type=chunk) [Non-Interest Income (Six Months)](index=62&type=section&id=Non-Interest%20Income_6M) - Non-interest income increased by **$5.6 million** to **$8.7 million** for the six months ended June 30, 2022, from **$3.1 million** in the prior year comparable period[205](index=205&type=chunk) - The increase was primarily due to net gains from fair value adjustments (**$0.7 million** in H1 2022 vs. **$5.6 million net losses** in H1 2021) and **$1.5 million** in life insurance proceeds in H1 2022[205](index=205&type=chunk) - These increases were partially offset by a decline in loan swap income during the six months ended June 30, 2022, compared to the six months ended June 30, 2021, due to lower activity[206](index=206&type=chunk) [Non-Interest Expense (Six Months)](index=64&type=section&id=Non-Interest%20Expense_6M) - Non-interest expense increased by **$2.1 million (3.0%)** to **$74.3 million** for the six months ended June 30, 2022, from **$72.2 million** in the prior year, primarily due to the growth of the Company[208](index=208&type=chunk) [Income before Income Taxes (Six Months)](index=64&type=section&id=Income%20before%20Income%20Taxes_6M) - Income before income taxes increased by **$8.0 million (15.4%)** to **$59.6 million** for the six months ended June 30, 2022, from **$51.6 million** in the prior year[209](index=209&type=chunk) [Provision for Income Taxes (Six Months)](index=64&type=section&id=Provision%20for%20Income%20Taxes_6M) - The provision for income taxes was **$16.4 million** for the six months ended June 30, 2022, an increase of **$3.0 million (22.6%)** from **$13.3 million** in the prior year[210](index=210&type=chunk) - The effective tax rate increased to **27.4%** in H1 2022 from **25.8%** in H1 2021, primarily due to the loss of certain New York State and City tax deductions[210](index=210&type=chunk) [Financial Condition](index=64&type=section&id=FINANCIAL%20CONDITION) [Assets](index=64&type=section&id=Assets_FC) - Total assets increased by **$293.7 million (3.7%)** to **$8,339.6 million** at June 30, 2022, from **$8,045.9 million** at December 31, 2021[211](index=211&type=chunk) - Total loans net increased by **$120.0 million (1.8%)** to **$6,721.0 million** at June 30, 2022[211](index=211&type=chunk) - Loan originations and purchases were **$833.1 million** for the six months ended June 30, 2022, an increase of **$185.8 million (28.7%)** from the prior year[211](index=211&type=chunk) - The loan pipeline was **$582.6 million** at June 30, 2022, up from **$429.3 million** at December 31, 2021[211](index=211&type=chunk) - Mortgage-backed securities decreased by **$61.3 million (10.6%)** to **$518.8 million**, primarily due to principal repayments and fair value decreases, partially offset by purchases[216](index=216&type=chunk) - Other securities increased by **$157.9 million (61.9%)** to **$413.0 million**, mainly due to purchases[217](index=217&type=chunk) - Non-performing assets totaled **$48.9 million** at June 30, 2022, an increase of **$34.0 million (227.7%)** from December 31, 2021[215](index=215&type=chunk) - Non-performing assets as a percentage of total assets were **0.59%** at June 30, 2022 (vs. **0.19%** at Dec 31, 2021)[215](index=215&type=chunk) - The ratio of ACL - loans to total non-performing loans was **141.1%** at June 30, 2022 (vs. **248.7%** at Dec 31, 2021)[215](index=215&type=chunk) [Liabilities](index=66&type=section&id=Liabilities_FC) - Total liabilities increased by **$302.5 million (4.1%)** to **$7,668.8 million** at June 30, 2022, from **$7,366.3 million** at December 31, 2021[218](index=218&type=chunk) - Deposits increased by **$16.5 million (0.3%)** to **$6,350.0 million**, driven by a **$113.6 million** increase in non-interest bearing deposits, partially offset by a decrease of **$97.1 million** in NOW, money market accounts and certificates of deposit[218](index=218&type=chunk) - Brokered deposits increased by **$402.1 million** to **$1,028.4 million**[218](index=218&type=chunk) - Borrowed funds increased by **$274.1 million** during the six months ended June 30, 2022[218](index=218&type=chunk) [Equity](index=66&type=section&id=Equity_FC) - Total stockholders' equity decreased by **$8.8 million (1.3%)** to **$670.8 million** at June 30, 2022, from **$679.6 million** at December 31, 2021[219](index=219&type=chunk) - This decrease was due to a **$24.6 million** decline in accumulated other comprehensive income, **$13.6 million** in dividends paid, and **$17.0 million** in share repurchases, partially offset by **$43.3 million** in net income[219](index=219&type=chunk) - Book value per common share increased to **$22.38** at June 30, 2022, compared to **$22.26** at December 31, 2021[219](index=219&type=chunk) [Liquidity](index=66&type=section&id=Liquidity_FC) - The Company's primary liquidity objectives are to fund loan originations, repay borrowings, satisfy financial obligations, and meet customer deposit withdrawal needs[220](index=220&type=chunk) - Cash and cash equivalents totaled **$137.0 million** at June 30, 2022, an increase of **$55.3 million** from December 31, 2021[221](index=221&type=chunk) - Unencumbered securities available for sale totaled **$546.4 million** at June 30, 2022[221](index=221&type=chunk) - At June 30, 2022, the Bank had **$3,675.0 million** available from the FHLB-NY (with **$1,655.4 million** outstanding) and **$695.0 million** in unsecured lines of credit with other commercial banks (no outstanding amount)[223](index=223&type=chunk) [Interest Rate Risk](index=68&type=section&id=INTEREST%20RATE%20RISK) [Economic Value of Equity Analysis](index=68&type=section&id=Economic%20Value%20of%20Equity%20Analysis) - The Company quantifies the net portfolio value (market value of assets net of liabilities) under various interest rate shock scenarios[225](index=225&type=chunk) Interest Rate Shock Analysis (June 30, 2022): | Scenario | Change in Net Portfolio Value (%) | Net Portfolio Value Ratio (%) | | :------------------- | :-------------------------------- | :---------------------------- | | -100 Basis points | 3.1% | 15.4% | | Base interest rate | — | 15.3% | | +100 Basis points | (5.7)% | 14.7% | | +200 Basis points | (11.5)% | 14.1% | - At June 30, 2022, the Company was within the guidelines set forth by the Board of Directors for each interest rate level[225](index=225&type=chunk) [Income Simulation Analysis](index=68&type=section&id=Income%20Simulation%20Analysis) - Based on assumptions, net interest income would be reduced by **3.9%** from a **100 basis point** increase in rates over the next twelve months[227](index=227&type=chunk) - The Company had a derivative portfolio with a notional value totaling **$1.4 billion** at June 30, 2022, designed to provide protection against rising interest rates[229](index=229&type=chunk) - A portion of this portfolio includes interest rate swaps on certain short-term advances and brokered deposits totaling **$871.5 million**[230](index=230&type=chunk) - Assuming a **200 basis point** increase over two years, the total derivative portfolio has a **1.6% benefit** to net interest income in the first year and a cumulative **4.2% benefit** by the second year[231](index=231&type=chunk) [Average Balances, Yields, and Costs](index=71&type=section&id=AVERAGE%20BALANCES) Average Interest-Earning Assets and Yields (Three Months Ended June 30): | Category | Average Balance (in thousands) | Interest (in thousands) | Yield/Cost (%) | | :--------------------------- | :----------------------------- | :---------------------- | :------------- | | Total loans, net (2022) | $6,640,331 | $69,192 | 4.17% | | Total loans, net (2021) | $6,686,888 | $67,999 | 4.07% | | Total interest-earning assets (2022) | $7,740,683 | $74,422 | 3.85% | | Total interest-earning assets (2021) | $7,790,174 | $71,855 | 3.69% | Average Interest-Bearing Liabilities and Costs (Three Months Ended June 30): | Category | Average Balance (in thousands) | Interest (in thousands) | Yield/Cost (%) | | :--------------------------- | :----------------------------- | :---------------------- | :------------- | | Total deposits (2022) | $5,396,351 | $4,686 | 0.35% | | Total deposits (2021) | $5,587,481 | $5,539 | 0.40% | | Total interest-bearing liabilities (2022) | $6,337,374 | $9,561 | 0.60% | | Total interest-bearing liabilities (2021) | $6,532,891 | $10,703 | 0.66% | Net Interest Margin (Tax Equivalent) (Three Months Ended June 30): | Period | Net Interest Margin (%) | | :----- | :---------------------- | | 2022 | 3.35% | | 2021 | 3.14% | Net Interest Margin (Tax Equivalent) (Six Months Ended June 30): | Period | Net Interest Margin (%) | | :----- | :---------------------- | | 2022 | 3.36% | | 2021 | 3.16% | [Loans (MD&A)](index=74&type=section&id=LOANS_MD%26A) Mortgage Loans Originated (Six Months Ended June 30): | Loan Type | 2022 (in thousands) | 2021 (in thousands) | | :---------------------------- | :------------------ | :------------------ | | Multi-family residential | $235,082 | $125,466 | | Commercial real estate | $209,928 | $55,119 | | One-to-four family mixed-use property | $20,726 | $15,847 | | One-to-four family residential | $13,472 | $4,673 | | Construction | $15,498 | $5,468 | | **Total Mortgage Loans Originated** | **$494,706** | **$206,573** | Non-Mortgage Loans Originated (Six Months Ended June 30): | Loan Type | 2022 (in thousands) | 2021 (in thousands) | | :---------------------------- | :------------------ | :------------------ | | Small Business Administration | $2,750 | $142,678 | | Commercial business | $222,281 | $164,166 | | Other | $2,341 | $3,170 | | **Total Other Loans Originated** | **$227,372** | **$310,014** | - Mortgage loans purchased were **$1.6 million** in H1 2022 (vs. **$64.9 million** in H1 2021). Non-mortgage loans purchased were **$109.4 million** in H1 2022 (vs. **$65.8 million** in H1 2021)[240](index=240&type=chunk) - The Bank maintains conservative underwriting standards, including a loan-to-value ratio of **75% or less** and a debt coverage ratio of at least **125%**[213](index=213&type=chunk) [Troubled Debt Restructured (TDR) and Non-Performing Assets](index=75&type=section&id=TROUBLED%20DEBT%20RESTRUCTURED%20%28%22TDR%22%29%20AND%20NON-PERFORMING%20ASSETS) Total Performing TDR Loans: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $14,782 | | Dec 31, 2021 | $12,762 | Total Non-Performing Assets: | Date | Amount (in thousands) | | :------------- | :-------------------- | | June 30, 2022 | $48,929 | | Dec 31, 2021 | $14,933 | - Non-performing assets to total assets increased to **0.59%** at June 30, 2022, from **0.19%** at December 31, 2021[245](index=245&type=chunk) - ACL - loans to non-performing loans decreased to **141.06%** at June 30, 2022, from **248.66%** at December 31, 2021[245](index=245&type=chunk) [Criticized and Classified Assets](index=76&type=section&id=CRITICIZED%20AND%20CLASSIFIED%20ASSETS) - Total Criticized and Classified assets were **$78.1 million** at June 30, 2022, a slight decrease from **$78.6 million** at December 31, 2021[246](index=246&type=chunk) - One investment security with an amortized cost of **$21.0 million** was classified as substandard at June 30, 2022 (previously special mention at Dec 31, 2021)[246](index=246&type=chunk) - Consumer mortgage loans in formal foreclosure proceedings totaled **$5.4 million** at June 30, 2022 (vs. **$8.7 million** at Dec 31, 2021)[247](index=247&type=chunk) [Allowance for Credit Losses](index=77&type=section&id=ALLOWANCE%20FOR%20CREDIT%20LOSSES) Allowance for Credit Losses (ACL) Summary (Six Months Ended June 30): | Category | 2022 (in thousands) | 2021 (in thousands) | | :--------------------------- | :------------------ | :------------------ | | ACL - Loans | $39,424 | $42,670 | | ACL - HTM Securities | $1,085 | $844 | | ACL - Off-Balance Sheet | $1,444 | $1,570 | | **Total Allowance for Credit Losses** | **$41,953** | **$45,084** | - Net charge-offs were **$(434) thousand** for the six months ended June 30, 2022, compared to **$(3,767) thousand** in the prior year[251](index=251&type=chunk) - Ratio of net charge-offs to average loans outstanding was **0.01%** in H1 2022 (vs. **0.11%** in H1 2021)[251](index=251&type=chunk) - The increase in non-performing assets is attributed to three relationships, one of which was resolved subsequent to June 30, 2022[252](index=252&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=79&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk" for detailed disclosures on market risk - For market risk disclosures, refer to the "Interest Rate Risk" section within Management's Discussion and Analysis[253](index=253&type=chunk) [Controls and Procedures](index=79&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The Company's management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2022, and concluded they were effective. No material changes to internal control over financial reporting occurred during the period - Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2022[253](index=253&type=chunk) - No material changes to internal control over financial reporting occurred during the reporting period[253](index=253&type=chunk) Part II – Other Information [Legal Proceedings](index=80&type=section&id=ITEM%201.%20Legal%20Proceedings) The Company is involved in various lawsuits, but management, in consultation with legal counsel, believes that their resolution will not have a material adverse effect on the Company's consolidated financial condition, results of operations, or cash flows - Management believes current legal proceedings will not materially adversely affect the Company's consolidated financial condition, results of operations, or cash flows[255](index=255&type=chunk) [Risk Factors](index=80&type=section&id=ITEM%201A.%20Risk%20Factors) This section updates risk factors, primarily focusing on the significant impact of changes in interest rates, including recent and potential future increases by the FOMC to combat inflation. It highlights how rising rates could affect net interest income, loan demand, asset values, and borrower repayment ability, while also noting the shorter duration of liabilities compared to assets - No material changes from the risk factors disclosed in the Company's annual report on Form 10-K for the year ended December 31, 2021, except as set forth in this section[256](index=256&type=chunk) - Changes in interest rates, including recent and perhaps future increases fueled by inflation, may significantly impact the Company's financial condition and results of operations[256](index=256&type=chunk) - The FOMC has increased the target range for the federal funds rate multiple times in 2022 (March: **25 bps**, May: **50 bps**, June: **75 bps**, July: **75 bps**) in response to inflationary pressures[257](index=257&type=chunk) - Rising interest rates could increase the rates paid on deposits and borrowings more rapidly than the rates earned on loans, adversely affecting net interest income[258](index=258&type=chunk) - Approximately **80%** of the Company's certificates of deposit accounts and borrowings will reprice or mature during the next year, exacerbating short-term interest rate risk[258](index=258&type=chunk) - An increasing interest rate environment would tend to extend the average lives of lower yielding fixed rate mortgages and mortgage-backed securities, which could adversely affect net interest income, and may also result in a reduction of prepayment penalty income[261](index=261&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased 387,689 shares of common stock during the three months ended June 30, 2022, under authorized stock repurchase programs. A new program for up to 1,000,000 additional shares was approved in May 2022, with 1,100,498 shares remaining for repurchase under current authorizations Common Stock Repurchases (Three Months Ended June 30, 2022): | Period | Total Shares Purchased | Average Price per Share | | :-------------------------- | :--------------------- | :---------------------- | | April 1 to April 30, 2022 | 20,000 | $21.67 | | May 1 to May 31, 2022 | 246,164 | $21.89 | | June 1 to June 30, 2022 | 121,525 | $22.31 | | **Total** | **387,689** | **$22.01** | - On May 17, 2022, the Board of Directors approved a new stock repurchase program to purchase up to an additional **1,000,000 shares**[263](index=263&type=chunk) - As of June 30, 2022, **1,100,498 shares** remained to be repurchased under the currently authorized stock repurchase programs[263](index=263&type=chunk) [Defaults Upon Senior Securities](index=83&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[264](index=264&type=chunk) [Mine Safety Disclosures](index=83&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[265](index=265&type=chunk) [Other Information](index=83&type=section&id=ITEM%205.%20Other%20Information) No other information was reported - No other information was reported[266](index=266&type=chunk) [Exhibits](index=84&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate organizational documents, indentures, the 2014 Omnibus Plan, and certifications under the Sarbanes-Oxley Act - Exhibits include the Certificate of Incorporation, By-Laws, Indentures, and the Amended Flushing Financial Corporation 2014 Omnibus Plan[270](index=270&type=chunk)[274](index=274&type=chunk) - Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer and Chief Financial Officer are filed/furnished[270](index=270&type=chunk)[274](index=274&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Documents are also included as exhibits[270](index=270&type=chunk)[274](index=274&type=chunk) [Signatures](index=86&type=section&id=SIGNATURES) The report is duly signed on behalf of Flushing Financial Corporation by John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President, Treasurer and Chief Financial Officer, on August 5, 2022 - The report was signed by John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President, Treasurer and Chief Financial Officer[279](index=279&type=chunk) - The signing date for the report was August 5, 2022[279](index=279&type=chunk)

Financial Performance - GAAP EPS 为 $0.81，核心 EPS 为 $0.70[2] - GAAP ROAA 和 ROAE 分别为 1.22% 和 15.00%；核心 ROAA 和 ROAE 在 2Q22 分别为 1.05% 和 12.90%[2] - 平均无息存款同比增长 13.1%[2] Loan and Deposit Growth - 不包括 PPP，贷款完成额同比增长 63.0%[2] - 不包括 PPP，净贷款同比增长 3.4%[2] - 强劲的贷款储备为 5.83 亿美元[2] - 贷款收益率上升 6 个基点；核心贷款收益率环比扩大 11 个基点[2] - 2Q22 检查账户开户数同比增长 17.6%[19] Asset Quality - 不良资产占资产的比例增加至 0.59%[3] - 不良资产的 LTV 为 50.7%[3] - 总体房地产投资组合的平均 LTV 低于 38.0%[3,29] Digital Banking and Technology - 每月移动活跃用户同比增长 28%[8] - 活跃网上银行用户约为 25,000 人，同比增长 27%[8] - 数字银行注册人数同比增长 14%[8] - 上半年在数字平台上发放了约 1100 万美元的贷款承诺[3,8] Strategic Initiatives - 自 2021 年 3 月 31 日以来，从合并机构增加了 42 人，其中 18 人是创收者[3,5,41] - 在 Elmhurst 开设新分行，扩大亚洲市场足迹[9] - 2Q22 回购了 387,689 股股票[39,41]

Flushing Financial Corporation (NASDAQ:FFIC) Q2 2022 Earnings Conference Call July 27, 2022 9:30 AM ET Company Participants John Buran – President and Chief Executive Officer Susan Cullen – Senior Executive Vice President and Chief Financial Officer Conference Call Participants Mark Fitzgibbon – Piper Sandler Chris O’Connell – KBW Manuel Navas – D.A. Davidson Operator Welcome to Flushing Financial Corporation's Second Quarter 2022 Earnings Conference Call. Hosting the call today are John Buran, President an ...

Stockbroker Club Presentation Personal Business Lending Government May 4, 2022 Small enough to know you. Large enough to help you.8 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 descriptions of historical facts may be forward-looking statements within the meani ...