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Flushing Financial Corporation
NASDAQ: FFIC
Ricky Deng
Summer 2014

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8/21/2015 28/21/2015
Executive Summary
• Market Capitalization: $ 609 mil
• Ticker: FFIC
• Fair Value: $20.08
• Current Price: $20.19
• Upside: -1%
• Average Volume: 82,989
• Recommendation: Sell 50K
(25% of position)

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Company Overview
• Principal Business: Attract retail deposits from general
public and invest those deposits into residential and
commercial mortgage loans
• Main Office: Flushing, New York
• Operate 17 full-service offices towards local community
• Online banking division: iGObanking.com®
• America's 50 Most Trustworthy Financial Companies by Forbes
(May, 2014)

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Sales Catalyst
• Stock is near fair value with limited loan growth
potential
• Position is illiquid – unnecessary risk if the worst should
happen (own 10,200 shares-12% of daily average volume)
• SIF Portfolio is significantly overweight in financials
(about 30% of current market value)

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Historical Performance
• 5 Year Revenue Growth: -1.5%
• 5 Year Net Income Growth: 11.2%
• 5 Year Average Profit Margin: 15.7%
• Spread=4.59%-1.38%=3.21% (FY2013)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
2008 2009 2010 2011 2012 2013
Gross Loans & Total Deposits
Gross Loans Total Deposits
Total Assets: $4.7B

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Loan Portfolio
• Mortgage Loans/ Gross Loans: 88.47%
• Multi-family Residential/ Gross Loans: 50.02%
• (Maturity) Within One Year/ Total Loans: 13%
• (Maturity) Over Five Years/ Total Loans: 63%

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Highlight 2014 Q1
• Asset Quality (2014 Q1)
• Tier 1 Capital Ratio: 14.75% vs 15.22% (Peer Avg.)
• Nonperforming Assets/ Assets: 1.04% vs 1.99%
• Net Charge-offs/Avg Loans: 0.05% vs 0.42%
($000) 2014 Q1 2013 Q4
Efficiency Ratio 56.64 46.96
Net Income 10,290 11,948
Dividends 0.15 0.13

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Highlights Future Strategy
• Continue our emphasis on the origination of multi-family
residential mortgage loans
• Transition from a traditional thrift to a more ‘commercial-like’
banking institution
• Increase our commitment to the multi-cultural marketplace,
with a particular focus on the Asian community in Queens

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Insider Activity

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Risks
• Under the circumstance of rising federal funds rate, saving
rates are higher while loan demands are lower, which will
negatively affect the operations
• Improvements in unemployment have lagged and remained at
an elevated level of 7.5% at December 2013 for the New York
City region
• Position is illiquid – unnecessary risk if the worst should
happen (own 10,200 shares-12% of daily average volume)

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Comp Analysis

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Recommendations
• Fair Value: $20.08
• Current Price: $20.19
• Upside: -1%
• Recommendation: Sell 50K
(25% of position)
Questions?
Ricky Deng