Flushing Financial (FFIC) investor relations material

Executive summary

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

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

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

• The company is progressing toward closing its all-stock merger with OceanFirst Financial Corp. by June 1, 2026, with all regulatory and shareholder approvals obtained.

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

Financial highlights

• Net interest income rose 4.2% year-over-year to $55.2 million, with net interest margin up 16 basis points to 2.67%.

• Interest and dividend income decreased 3.0% to $113.0 million, while interest expense fell 9.0% to $57.8 million.

• Non-interest income dropped 64.8% to $1.8 million, mainly due to higher net losses from fair value adjustments; core noninterest income was $5.2 million, down 3.2% YoY.

• Non-interest expense decreased 21.6% YoY to $46.8 million, reflecting the absence of a prior year goodwill impairment charge; core noninterest expense increased 5.6% YoY to $44.3 million.

• Provision for credit losses was $2.0 million, down from $4.3 million in Q1 2025 and $2.7 million QoQ.

Outlook and guidance

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

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

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

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