About Flushing Financial

Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides a wide variety of financial services to meet the needs of the communities the company serves. The bank operates as a full-service New York State commercial bank. The bank owned two subsidiaries during 2022: Flushing Service Corporation and FSB Properties Inc. The bank also operates an internet branch (the ‘Internet Branch’), which operates under the brands of iGObanking.com and BankPurely. The company’s principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in originations and purchases of multi-family residential properties loans, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family loans (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); construction loans; Small Business Administration (‘SBA’) loans; mortgage loan surrogates, such as mortgage-backed securities; and the U.S. government securities, corporate fixed-income securities and other marketable securities. The company also originates certain other consumer loans, including overdraft lines of credit. Mortgage loans are primarily multi-family, commercial and one-to-four family mixed-use properties, which represent 73.2% of gross loans. The company’s revenues are derived principally from interest on loans, the company’s mortgage-backed securities portfolio, and interest and dividends on other investments in the company’s securities portfolio. The company’s primary sources of funds are deposits, Federal Home Loan Bank of New York (‘FHLB-NY’) borrowings, principal and interest payments on loans, mortgage-backed, other securities and to a lesser extent proceeds from sales of securities and loans. The bank’s primary regulator is the New York State Department of Financial Services (‘NYDFS’), and its primary federal regulator is the Federal Deposit Insurance Corporation (‘FDIC’). Deposits are insured to the maximum allowable amount by the FDIC. Additionally, the bank is a member of the Federal Home Loan Bank (‘FHLB’) system. Market Area The bank’s main office and its executive offices are in Uniondale, New York, located in Nassau County. The bank operates full-service offices and the Internet Branch. The company has offices located in the New York City Boroughs of Queens, Brooklyn, and Manhattan, and in Nassau and Suffolk County, New York. The vast majority of all of the company’s mortgage loans are secured by properties located in the New York City metropolitan area. Strategy The company’s strategy for attracting deposits includes using various marketing techniques, delivering enhanced technology and customer friendly banking services, and focusing on the unique personal and small business banking needs of the multi-ethnic communities the company serve. The company’s strategy for attracting new loans is primarily dependent on providing timely response to applicants and maintaining a network of quality brokers and other business sources. Lending Activities The company’s loan portfolio consists primarily of mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans. In addition, the company offers construction loans, SBA loans and other consumer loans. The vast majority of the company’s mortgage loans are secured by properties located within the company’s market area. The company has focused its loan origination efforts on multi-family residential mortgage loans, commercial real estate and commercial business loans with full banking relationships. The company’s loan portfolio consists of adjustable-rate (‘ARM’) and fixed-rate loans. The majority of the company’s commercial business loans are generated by the company’s business banking group, which focuses on loan and deposit relationships to businesses located within the company’s market area. These loans are generally personally guaranteed by the owners, and may be secured by the assets of the business, which at times may include real estate. At times, the company may purchase whole or participations in loans from banks, mortgage bankers and other financial institutions when the loans complement the company’s loan portfolio strategy. Multi-family Residential Lending: The company offers both fixed-rate and adjustable-rate multi-family residential mortgage loans, with maturities of up to 30 years. The company offers ARM loans with adjustment periods typically of five years and for terms of up to 30 years. The company’s fixed-rate multi-family mortgage loans are generally originated for terms up to 15 years. Commercial Real Estate Lending: The company’s commercial real estate mortgage loans are secured by properties, such as hotels/motels, small business facilities, strip shopping centers, warehouses, and office buildings. The company offers ARM loans with adjustment periods of one to five years and generally for terms of up to 15 years. The company’s fixed-rate commercial mortgage loans are generally originated for terms up to 20 years. One-to-Four Family Mortgage Lending – Mixed-Use Properties: The company offers mortgage loans secured by one-to-four family mixed-use properties. These properties contain up to four residential dwelling units and include a commercial component. The company offers both fixed-rate and adjustable-rate one-to-four family mixed-use property mortgage loans with maturities of up to 30 years. The company offer adjustable-rate one-to-four family mixed-use property mortgage loans with adjustment periods typically of five years and for terms of up to 30 years. The company’s fixed-rate one-to-four family mixed-use property mortgage loans are originated for terms of up to 15 years. One-to-Four Family Mortgage Lending – Residential Properties: The company offers mortgage loans secured by one-to-four family residential properties, including townhouses and condominium units. For purposes of the description contained in this section, one-to-four family residential mortgage loans, co-operative apartment loans and home equity loans are collectively referred to herein as ‘residential mortgage loans.’ The company offers both fixed-rate and adjustable-rate residential mortgage loans with maturities of up to 30 years. The company offers ARM loans with adjustment periods of one, three, five, seven or ten years. The company’s fixed-rate residential mortgage loans typically are originated for terms of 15 and 30 years. The majority of home equity loans originated are owner occupied one-to-four family residential properties and condominium units. To a lesser extent, home equity loans are also originated on one-to-four residential properties held for investment and second homes. Construction Loans: The company’s construction loans primarily are adjustable-rate loans to finance the construction of one-to-four family residential properties, multi-family residential properties and owner-occupied commercial properties. The company also, to a limited extent, finances the construction of commercial properties. Construction loans are generally made with terms of two years or less. Small Business Administration Lending: SBA loans are extended to small businesses. The company also provides term loans and lines of credit up to $350,000 under the SBA Express Program, on which the SBA provides a 50% guaranty. Commercial Business and Other Lending: The company originates and purchases commercial business loans and other loans for business, personal, or household purposes. The company’s commercial business loans include lines of credit and term loans, including owner occupied mortgages. These loans are secured by business assets, including accounts receivables, inventory, equipment and real estate and generally require personal guarantees. The bank also enters into participations/syndications on senior secured commercial business loans, which are serviced by other banks. The company generally offers adjustable-rate loans with adjustment periods of five years for owner occupied mortgages and for lines of credit the adjustment period is generally monthly. The company’s fixed-rate commercial business loans are generally originated for terms up to 20 years. Other loans generally consist of overdraft lines of credit. Investment Activities The company primarily invests in mortgage-backed securities, securities issued by mutual or bond funds that invest in government and government agency securities, municipal bonds, corporate bonds and collateralized loan obligations (‘CLO’). Deposits The company offers a variety of deposit accounts having a range of interest rates and terms. The company’s deposits primarily consist of savings accounts, money market accounts, demand accounts, NOW accounts and certificates of deposit. In addition to the company’s full-service offices, the company operates the Internet Branch and a government banking unit. The Internet Branch offers savings accounts, money market accounts, checking accounts, and certificates of deposit. The government banking unit provides banking services to public municipalities, including counties, cities, towns, villages, school districts, libraries, fire districts, and the various courts throughout the New York City metropolitan area. The company’s core deposits, consisting of savings accounts, NOW accounts, money market accounts, and non-interest bearing demand accounts, are typically more stable and lower costing than other sources of funding. Regulation The company is subject to examination, regulation, and periodic reporting under the Bank Holding Company Act of 1956, as amended (the ‘BHCA’), as administered by the FRB. The bank is a New York State-chartered commercial bank and its deposit accounts are insured under the Deposit Insurance Fund (the ‘DIF’) of the Federal Deposit Insurance Corporation (the ‘FDIC’) up to applicable legal limits. The bank is subject to extensive regulation and supervision by the New York State Department of Financial Services (‘NYDFS’), as its chartering agency, by the FDIC, as its insurer of deposits, and to a lesser extent by the Consumer Financial Protection Bureau (the ‘CFPB’), which was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the ‘Dodd-Frank Act’). The company is required to file certain reports under, and otherwise comply with, the rules and regulations of the Federal Reserve Board of Governors (the ‘FRB’), the FDIC, the NYDFS, and the Securities and Exchange Commission (the ‘SEC’) under federal securities laws. In addition, the FRB periodically examines the company. The Coronavirus Aid, Relief and Economic Security Act, as amended by the CAA (Consolidated Appropriations Act, 2021), includes a provision for the company to opt out of applying the TDR accounting guidance in Accounting Standards Codification (‘ASC’) 310-40 for certain loan modifications. The bank derives its lending, investment, and other authority primarily from the applicable provisions of New York State Banking Law and the regulations of the NYDFS, as limited by FDIC regulations. The bank is subject to the bank Secrecy Act (‘BSA’), which incorporates several laws, including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the ‘USA PATRIOT Act’) and related regulations. In addition, the deposits of the bank are insured up to applicable limits by the DIF. The bank received a CRA rating of ‘Outstanding’ in its most recent completed CRA examination, the report for which was prepared as of July 9, 2021 and approved by the FDIC on April 7, 2022. The bank is also subject to provisions of the New York State Banking Law that impose continuing and affirmative obligations upon a banking institution organized in New York State to serve the credit needs of its local community (the ‘NYCRA’). The bank is a member of the FHLB-NY. The GLBA requires financial institutions to periodically disclose their privacy practices and policies relating to sharing such information and enable retail customers to opt out of the bank’s ability to share certain information with affiliates and non-affiliates for marketing and/or non-marketing purposes, or to contact customers with marketing offers. The Cybersecurity Information Sharing Act (the ‘CISA’) is intended to improve cybersecurity in the U.S. through sharing of information about security threats between the U.S. government and private sector organizations, including financial institutions, such as the bank. The company’s common stock is registered with the SEC and listed for trading on The Nasdaq Stock Market (‘Nasdaq’). Accordingly, the company is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934 and the rules of Nasdaq. History Flushing Financial Corporation was founded in 1929. The company was incorporated in 1994.