フラッシングファイナンシャルの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2023

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

(I.R.S. Employer Identification No.)

220 RXR Plaza, Uniondale, NY 11556

(Address of principal executive offices)

(718) 961-5400

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 25, 2023, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1 Press release dated July 25, 2023

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

usa
	FLUSHING FINANCIAL CORPORATION


Date: July 25, 2023	By:	/s/ SUSAN K. CULLEN
		Susan K. Cullen
		Senior Executive Vice President and Chief Financial Officer

EX-99.1 2 ffic-20230725xex99d1.htm EX-99.1 Flushing Financial 2Q23 Earnings Release

Exhibit 99.1

0	● ●
	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 2Q23 GAAP EPS of $0.29 and Core EPS of $0.26; Delivered Sequential Improvements in Key Metrics; Progressing on Action Plan to Continue Enhancing Business Model Resilience and Drive Profitability
“We delivered sequential improvements in key metrics in the second quarter amid continuing uncertainty in the operating environment. We experienced the lowest level of NIM compression of the past four quarters and achieved QoQ improvements in the loan pipeline and asset quality. Further, we increased deposit balances compared to past seasonal trends. As we continue to execute on the action plan announced last quarter, we are pleased with the progress we are making to enhance the resilience of our business model and strengthen performance: 1) continued to move more towards interest rate risk neutral with the addition of over $400 million of interest rate hedges and $250 million in forward hedges becoming effective; 2) the loan pipeline and yield increased 56% and 20 bps, respectively, QoQ; 3) checking account openings increased 10 % YoY; 4) reviewed new and existing relationships resulting in improved credit metrics and normalized net charge-offs; Manhattan office buildings are approximately 0.6% of net loans; 5) available liquidity and capital ratios remained stable; and 6) controlled noninterest expenses, which decreased 1% YoY. In addition, we repurchased approximately 530,000 shares in 2Q23 without a material effect on the tangible common equity ratio. Taken together, these actions support continued improvement of our profitability and liquidity while preparing us for a range of possible rate environments. While we remain conservative regarding our operating environment, our progress gives us cautious optimism for the remainder of the year. Looking ahead, we will continue to focus on positioning the Company for success with an emphasis on reducing interest rate risk, improving credit quality, liquidity, and the customer experience.” - John R. Buran, President and CEO
Uniondale, N.Y., July 25, 2023 (GLOBAL NEWSWIRE) – EPS Improves QoQ; NIM Compression Slows. The Company reported second quarter 2023 GAAP EPS of $0.29, down 64% YoY, but up 71% QoQ. Core EPS totaled $0.26, a decrease of 63% YoY, but an increase of 160% QoQ. The improvement QoQ was primarily driven by the return to normalized credit costs, the absence of seasonal expenses, and the benefit derived from the interest rate hedge strategy. The interest rate hedges slowed the NIM compression, which was only 9 bps QoQ to 2.18%. The interest rate hedges, and other balance sheet actions, have reduced the liability sensitive position significantly over the past year and are beneficial in a “higher-for-longer” rate environment. Credit Quality Improved; Strong Capital. QoQ, nonperforming assets and criticized and classified assets decreased 6% and 12%, respectively, while net charge offs were 9 basis points. Capital continues to be sound with a TCE1 of 7.71%, stable QoQ.

Key Financial Metrics2


	2Q23	1Q23	4Q22	3Q22	2Q22	1H23	1H22
GAAP:
EPS	$0.29	$0.17	$0.34	$0.76	$0.81	$0.46	$1.39
ROAA (%)	0.41	0.24	0.48	1.11	1.22	0.33	1.06
ROAE (%)	5.12	3.02	6.06	13.91	15.00	4.06	12.91
NIM FTE3 (%)	2.18	2.27	2.70	3.07	3.35	2.22	3.36
Core:
EPS	$0.26	$0.10	$0.57	$0.62	$0.70	$0.36	$1.30
ROAA (%)	0.37	0.14	0.82	0.90	1.05	0.26	1.00
ROAE (%)	4.66	1.76	10.29	11.24	12.90	3.20	12.08
Core NIM FTE (%)	2.17	2.25	2.63	3.03	3.33	2.21	3.32
Credit Quality:
NPAs/Loans & OREO (%)	0.58	0.61	0.77	0.72	0.72	0.58	0.72
ACLs/Loans (%)	0.57	0.56	0.58	0.59	0.58	0.57	0.58
ACLs/NPLs (%)	207.08	182.89	124.89	142.29	141.06	207.08	141.06
NCOs/Avg Loans (%)	0.09	0.54	0.05	0.02	(0.03)	0.32	0.01
Balance Sheet:
Avg Loans ($B)	$6.8	$6.9	$6.9	$6.9	$6.6	$6.9	$6.6
Avg Dep ($B)	$6.9	$6.8	$6.7	$6.3	$6.4	$6.9	$6.4
Book Value/Share	$23.18	$22.84	$22.97	$22.47	$22.38	$23.18	$22.38
Tangible BV/Share	$22.51	$22.18	$22.31	$21.81	$21.71	$22.51	$21.71
TCE/TA (%)	7.71	7.73	7.82	7.62	7.82	7.71	7.82

1 Tangible Common Equity (“TCE”)/Total Assets (“TA”) 2 See “Reconciliation of GAAP Earnings and Core Earnings”, “Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue”, and “Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin.” 3 Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌1


2Q23 Highlights
● Net interest margin FTE decreased 117 bps YoY and 9 bps QoQ to 2.18%; Core net interest margin FTE decreased 116 bps YoY and 8 bps QoQ to 2.17%; Both GAAP and Core NIMs benefited from the $450 million of new hedges added in late 1Q23, an additional $400 million in 2Q23, and $250 million of forward hedges that became effective in 2Q23; Overall liability sensitivity has been reduced by 64% over the past year ● Average total deposits increased 7.1% YoY and 1.3% QoQ to $6.9 billion; average CDs totaled $2.0 billion, up 149.5% YoY and 21.9% QoQ; growth in CDs generally lengthens the duration of customer deposits and helps reduce rate sensitivity ● Period end net loans increased 1.1% YoY, but decreased 1.0% QoQ; loan closings were $158.8 million down 68.5% YoY and 8.5% QoQ; the yield on closings increased 322 bps YoY and 13 bps QoQ to 7.14% ● Loan pipeline decreased 28.7% YoY, but increased 56.1% QoQ to $415.5 million; nearly 35% of the loan pipeline consists of back-to-back loan swaps ● NPAs declined to $39.6 million from $48.9 million a year ago and $42.2 million in the prior quarter ● Provision for credit losses was $1.4 million in 2Q23 compared to $1.6 million in 2Q22 and $7.5 million in 1Q23; net charge-offs were $1.6 million in 2Q23 compared to net recoveries of $0.5 million in 2Q22 and net charge-offs of 9.2 million in 1Q23 ● Tangible Common Equity to Tangible Assets was stable at 7.71% at 2Q23 compared to 7.73% at 1Q23 ● Repurchased 528,815 shares at an average price of $12.94 or at a 42.5% discount to June 30, 2023 tangible book value of $22.51
Areas of Focus
Interest Rate Risk	● Continued to take significant actions to position the Company’s balance sheet more towards interest rate risk neutral ● During 2Q23, the Company added $400 million of interest rate hedges and an additional $250 million of forward hedges that became effective ● Rate sensitivity to a +100 bps shock has been reduced by 64% over the past year
Credit Quality	● Manhattan office buildings are approximately 0.6% of net loans ● Over 88% of the loan portfolio is collateralized by real estate with an average loan to value less than 36% ● Debt service coverage ratio of 1.8x for multifamily and investor commercial real estate loans that reprice through 2025
Liquidity	● The Company maintains ample liquidity with $3.7 billion of undrawn lines and resources ● Total deposits increased 4.9% YoY and 2Q23 balances were higher than normal seasonal declines ● Checking account openings were up 9.6% YoY in 2Q23
Customer Experience	● Additional opportunities emerging as competitors leave the market ● Approximately 33% of our branches are in Asian communities ● Bensonhurst, our 27th branch, is expected to open in the second half of 2023, and will enhance our Asian community branch presence ● Digital banking usage continues to increase with double digit growth in monthly mobile deposit active users and digital banking enrollment in June 2023 versus a year ago

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌2

Income Statement Highlights


						YoY		QoQ
($000s, except EPS)	2Q23	1Q23	4Q22	3Q22	2Q22	Change		Change

Net Interest Income	$43,378	$45,262	$54,201	$61,206	$64,730	(33.0)	%	(4.2)	%
Provision (Benefit) for Credit Losses	1,416	7,508	(12)	2,145	1,590	(10.9)		NM
Noninterest Income (Loss)	5,122	6,908	(7,652)	8,995	7,353	(30.3)		(25.9)
Noninterest Expense	35,279	37,703	33,742	35,634	35,522	(0.7)		(6.4)
Income Before Income Taxes	11,805	6,959	12,819	32,422	34,971	(66.2)		69.6
Provision for Income Taxes	3,177	1,801	2,570	8,980	9,936	(68.0)		76.4
Net Income	$8,628	$5,158	$10,249	$23,442	$25,035	(65.5)		67.3
Diluted EPS	$0.29	$0.17	$0.34	$0.76	$0.81	(64.2)		70.6
Avg. Diluted Shares (000s)	30,090	30,265	30,420	30,695	30,937	(2.7)		(0.6)

Core Net Income1	$7,854	$3,003	$17,399	$18,953	$21,518	(63.5)		161.5
Core EPS1	$0.26	$0.10	$0.57	$0.62	$0.70	(62.9)		160.0

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income decreased YoY and QoQ.

●

Net interest margin, FTE of 2.18% decreased 117 bps YoY and 9 bps QoQ

●

Prepayment penalty income from loans and securities, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $0.5 million (3 bps to the NIM) in 2Q23 compared to $1.1 million (6 bps) in 1Q23, $2.4 million (12 bps) in 4Q22, $2.2 million (11 bps) in 3Q22, and $2.6 million (13 bps) in 2Q22; Prepayment penalty income declined primarily due to the higher rate environment

●

Excluding the items in the previous bullet, net interest margin was 2.15% in 2Q23, 2.21% in 1Q23, 2.58% in 4Q22, 2.96% in 3Q22, and 3.22% in 2Q22

●

Quarterly NIM compression of 9 bps was the slowest decline in the past four quarters primarily due to the balance sheet actions taken in 1Q23 and 2Q23 that reduced liability sensitivity

The provision for credit losses declined YoY and QoQ.

●

Net charge-offs (recoveries) were $1.6 million in 2Q23 (9 bps of average loans), $9.2 million in 1Q23 (54 bps of average loans), $0.8 million in 4Q22 (5 bps of average loans), $0.3 million in 3Q22 (2 bps of average loans), and $(0.5) million in 2Q22 ((3) bps of average loans)

●

1Q23 net charge-offs were primarily related to a commercial business relationship that was placed on nonaccrual in 2Q22

Noninterest income (loss) declined YoY and QoQ.

●

Noninterest income included net gains (losses) from fair value adjustments of $0.3 million in 2Q23 ($0.01 per share, net of tax), $2.6 million in 1Q23 ($0.06 per share, net of tax), $(0.6) million in 4Q22 ($(0.02) per share, net of tax), $5.6 million in 3Q22 ($0.13 per share, net of tax), and $2.5 million in 2Q22 ($0.06 per share, net of tax)

●

Loss on the sale of securities was $10.9 million ($0.27 per share, net of tax) in 4Q22 as the Company sold $84.2 million of mortgage-based securities with an approximate yield of 1.17%; proceeds were primarily reinvested in 1Q23 into floating rate securities that had a yield at that time that approximated 6.40%

●

Life insurance proceeds were $0.6 million ($0.02 per share) in 2Q23, $0.3 million ($0.01 per share) in 4Q22 and $1.5 million ($0.05 per share) in 2Q22

●

Absent all above items and other immaterial adjustments, core noninterest income was $4.3 million in 2Q23, up 29.9% YoY but down 0.5% QoQ

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌3

Noninterest expense decreased YoY and QoQ.

●

Given the challenging rate environment, management continues to actively review all noninterest expenses

●

Other operating expenses include $0.6 million reduction in reserves for unfunded commitments in 3Q22

●

Seasonal compensation expense was $4.1 million in 1Q23

●

Excluding the effects of other immaterial adjustments, core operating expenses were $35.2 million in 2Q23, down 0.6% YoY, and 6.4% QoQ

●

GAAP noninterest expense to average assets was 1.67% in 2Q23, 1.78% in 1Q23, 1.58% in 4Q22, 1.69% in 3Q22, and 1.73% in 2Q22

Provision for income taxes declined YoY and increased QoQ.

●

The effective tax rate was 26.9% in 2Q23, 25.9% in 1Q23, 20.0% in 4Q22, 27.7% in 3Q22, and 28.4% in 2Q22

●

The 4Q22 effective tax rate declined due to preferential tax items having a larger impact due to lower levels of pre-tax income

●

The 2Q22 effective tax rate includes a loss of certain state and city tax deductions and a resolution of certain examinations by taxing authorities

Balance Sheet, Credit Quality, and Capital Highlights


						YoY		QoQ
	2Q23	1Q23	4Q22	3Q22	2Q22	Change		Change
Averages ($MM)
Loans	$6,830	$6,871	$6,881	$6,861	$6,640	2.9	%	(0.6)	%
Total Deposits	6,900	6,810	6,678	6,277	6,441	7.1		1.3

Credit Quality ($000s)
Nonperforming Loans	$18,637	$21,176	$32,382	$29,003	$27,948	(33.3)	%	(12.0)	%
Nonperforming Assets	39,618	42,157	53,363	49,984	48,929	(19.0)		(6.0)
Criticized and Classified Loans	48,675	58,130	68,093	61,684	57,145	(14.8)		(16.3)
Criticized and Classified Assets	69,656	79,111	89,073	82,665	78,125	(10.8)		(12.0)
Allowance for Credit Losses/Loans (%)	0.57	0.56	0.58	0.59	0.58	(1)	bp	1	bps

Capital
Book Value/Share	$23.18	$22.84	$22.97	$22.47	$22.38	3.6	%	1.5	%
Tangible Book Value/Share	22.51	22.18	22.31	21.81	21.71	3.7		1.5
Tang. Common Equity/Tang. Assets (%)	7.71	7.73	7.82	7.62	7.82	(11)	bps	(2)	bps
Leverage Ratio (%)	8.56	8.58	8.61	8.74	8.91	(35)		(2)

Average loans increased YoY but declined QoQ.

●

Maintain the credit strategy of loans secured by real estate with a greater emphasis on back-to-back swap originations

●

Period end net loans totaled $6.8 billion, up 1.1% YoY, but down 1.0% QoQ

●

Total loan closings were $158.8 million in 2Q23, $173.5 million in 1Q23, $225.2 million in 4Q22, $463.7 million in 3Q22, and $503.8 million in 2Q22; the loan pipeline was $415.5 million at June 30, 2023, down 28.7% YoY, but up 56.1% QoQ; closings were impacted by customers adjusting to the higher rate environment

●

The diversified loan portfolio is over 88% collateralized by real estate with an average loan-to-value ratio of <36%

●

Manhattan office buildings are approximately 0.6% of net loans

Average total deposits increased YoY and QoQ.

●

Average CDs totaled $2.0 billion, up 149.5% YoY and 21.9% QoQ; CDs generally lengthen the duration of customer deposits and reduce sensitivity to rising rates

●

Average noninterest bearing deposits decreased 18.7% YoY and 5.2% QoQ in 2Q23 and comprised 12.3% of average total deposits in 2Q23 compared to 16.2% a year ago

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌4

Credit Quality: Nonperforming loans declined YoY and QoQ.

●

Criticized and classified loans were 71 bps of gross loans at 2Q23 compared to 84 bps at 1Q23, 98 bps at 4Q22, 89 bps at 3Q22, and 85 bps at 2Q22

●

Allowance for credit losses were 207.1% of nonperforming loans at 2Q23 compared to 182.9% at 1Q23, and 141.1% at 2Q22

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased YoY and QoQ.

●

The Company paid a dividend of $0.22 per share in 2Q23 and has ample available liquidity to meet its obligations

●

The Company repurchased 528,815 shares in 2Q23 at an average price of $12.94, representing a 42.5% discount to tangible book value, with 906,131 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit

●

Tangible common equity to tangible assets was 7.71% at 2Q23 compared to 7.73% at 1Q23 and 7.82% at 2Q22

●

The Company and the Bank remain well capitalized under all applicable regulatory requirements

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌5

Conference Call Information and Third Quarter Earnings Release Date

Conference Call Information:

●

John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Wednesday, July 26, 2023, at 9:30 AM (ET) to discuss the Company’s first quarter results and strategy.

●

Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657

●

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Nb7q4ytY

●

Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658

●

Replay Access Code: 7017400

●

The conference call will be simultaneously webcast and archived

Third Quarter 2023 Earnings Release Date:

The Company plans to release Third Quarter 2023 financial results after the market close on October 31, 2023; followed by a conference call at 9:30 AM (ET) on November 1, 2023.

A detailed announcement will be issued prior to the third quarter’s close confirming the date and time of the earnings release.

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State—chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank’s experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.

Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company’s website at FlushingBank.com. Flushing Financial Corporation’s earnings release and presentation slides will be available prior to the conference call at www.FlushingBank.com under Investor Relations.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release 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 meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-looking statements.

#FF

- Statistical Tables Follow -

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌6

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)


	At or for the three months ended															At or for the six months ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share data)	2023			2023			2022			2022			2022			2023			2022
Performance Ratios (1)
Return on average assets		0.41	%		0.24	%		0.48	%		1.11	%		1.22	%		0.33	%		1.06	%
Return on average equity		5.12			3.02			6.06			13.91			15.00			4.06			12.91
Yield on average interest-earning assets (2)		4.84			4.61			4.44			4.10			3.85			4.73			3.81
Cost of average interest-bearing liabilities		3.15			2.80			2.11			1.25			0.60			2.97			0.55
Cost of funds		2.80			2.47			1.84			1.08			0.52			2.63			0.48
Net interest rate spread during period (2)		1.69			1.81			2.33			2.85			3.25			1.76			3.26
Net interest margin (2)		2.18			2.27			2.70			3.07			3.35			2.22			3.36
Noninterest expense to average assets		1.67			1.78			1.58			1.69			1.73			1.72			1.83
Efficiency ratio (3)		74.02			76.48			59.55			55.68			52.27			75.27			55.52
Average interest-earning assets to average interest-bearing liabilities		1.18	X		1.19	X		1.21	X		1.22	X		1.22	X		1.19	X		1.22	X

Average Balances
Total loans, net	$	6,829,648		$	6,871,192		$	6,881,245		$	6,861,463		$	6,640,331		$	6,850,305		$	6,609,676
Total interest-earning assets		7,986,020			7,996,677			8,045,691			7,979,070			7,740,683			7,991,320			7,655,999
Total assets		8,461,827			8,468,311			8,518,019			8,442,657			8,211,763			8,465,051			8,131,065
Total deposits		6,899,617			6,810,485			6,678,383			6,276,613			6,440,904			6,855,299			6,425,569
Total interest-bearing liabilities		6,756,859			6,703,558			6,662,209			6,553,087			6,337,374			6,730,357			6,279,265
Stockholders' equity		673,943			683,071			676,165			674,282			667,456			678,481			670,219

Per Share Data
Book value per common share (4)	$	23.18		$	22.84		$	22.97		$	22.47		$	22.38		$	23.18		$	22.38
Tangible book value per common share (5)	$	22.51		$	22.18		$	22.31		$	21.81		$	21.71		$	22.51		$	21.71

Stockholders' Equity
Stockholders' equity	$	671,303		$	673,459		$	677,157		$	670,719		$	670,812		$	671,303		$	670,812
Tangible stockholders' equity		651,898			653,932			657,504			650,936			650,894			651,898			650,894

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	735,810		$	737,138		$	746,880		$	749,526		$	739,776		$	735,810		$	739,776
Common equity Tier 1 capital		689,876			690,846			698,258			701,532			686,258			689,876			686,258
Total risk-based capital		963,840			965,384			975,709			979,021			903,047			963,840			903,047
Risk Weighted Assets		6,649,252			6,659,532			6,640,542			6,689,284			6,522,710			6,649,252			6,522,710

Tier 1 leverage capital (well capitalized = 5%)		8.56	%		8.58	%		8.61	%		8.74	%		8.91	%		8.56	%		8.91	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.38			10.37			10.52			10.49			10.52			10.38			10.52
Tier 1 risk-based capital (well capitalized = 8.0%)		11.07			11.07			11.25			11.20			11.34			11.07			11.34
Total risk-based capital (well capitalized = 10.0%)		14.50			14.50			14.69			14.64			13.84			14.50			13.84

Capital Ratios
Average equity to average assets		7.96	%		8.07	%		7.94	%		7.99	%		8.13	%		8.02	%		8.24	%
Equity to total assets		7.92			7.94			8.04			7.84			8.04			7.92			8.04
Tangible common equity to tangible assets (6)		7.71			7.73			7.82			7.62			7.82			7.71			7.82

Asset Quality
Nonaccrual loans (7)	$	18,637		$	21,176		$	29,782		$	27,003		$	27,848		$	18,637		$	27,848
Nonperforming loans		18,637			21,176			32,382			29,003			27,948			18,637			27,948
Nonperforming assets		39,618			42,157			53,363			49,984			48,929			39,618			48,929
Net charge-offs (recoveries)		1,560			9,234			811			290			(501)			10,794			434

Asset Quality Ratios
Nonperforming loans to gross loans		0.27	%		0.31	%		0.47	%		0.42	%		0.41	%		0.27	%		0.41	%
Nonperforming assets to total assets		0.47			0.50			0.63			0.58			0.59			0.47			0.59
Allowance for credit losses to gross loans		0.57			0.56			0.58			0.59			0.58			0.57			0.58
Allowance for credit losses to nonperforming assets		97.41			91.87			75.79			82.56			80.57			97.41			80.57
Allowance for credit losses to nonperforming loans		207.08			182.89			124.89			142.29			141.06			207.08			141.06
Net charge-offs (recoveries) to average loans		0.09			0.54			0.05			0.02			(0.03)			0.32			0.01

Full-service customer facilities		26			26			25			25			25			26			25

(See footnotes on next page)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌7

(1)

Ratios are presented on an annualized basis, where appropriate.

(2)

Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

(3)

Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.

(4)

Calculated by dividing stockholders’ equity by shares outstanding.

(5)

Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less intangible assets. See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.

(6)

See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.

(7)

Excludes performing nonaccrual TDR loans in periods prior to 1Q23.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌8

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the three months ended										For the six months ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(In thousands, except per share data)	2023		2023		2022		2022		2022		2023		2022
Interest and Dividend Income
Interest and fees on loans	$	85,377	$	82,889	$	81,033	$	75,546	$	69,192	$	168,266	$	136,708
Interest and dividends on securities:
Interest		9,172		7,240		6,511		5,676		4,929		16,412		8,674
Dividends		30		29		24		17		11		59		19
Other interest income		1,982		1,959		1,702		506		159		3,941		210
Total interest and dividend income		96,561		92,117		89,270		81,745		74,291		188,678		145,611

Interest Expense
Deposits		46,249		39,056		27,226		11,965		4,686		85,305		8,094
Other interest expense		6,934		7,799		7,843		8,574		4,875		14,733		9,308
Total interest expense		53,183		46,855		35,069		20,539		9,561		100,038		17,402

Net Interest Income		43,378		45,262		54,201		61,206		64,730		88,640		128,209
Provision (benefit) for credit losses		1,416		7,508		(12)		2,145		1,590		8,924		2,948
Net Interest Income After Provision (Benefit) for Credit Losses		41,962		37,754		54,213		59,061		63,140		79,716		125,261

Noninterest Income (Loss)
Banking services fee income		1,780		1,411		1,231		1,351		1,166		3,191		2,540
Net loss on sale of securities		—		—		(10,948)		—		—		—		—
Net gain on sale of loans		54		54		46		—		73		108		73
Net gain on disposition of assets		—		—		104		—		—		—		—
Net gain (loss) from fair value adjustments		294		2,619		(622)		5,626		2,533		2,913		724
Federal Home Loan Bank of New York stock dividends		534		697		658		538		407		1,231		804
Life insurance proceeds		561		—		286		—		1,536		561		1,536
Bank owned life insurance		1,134		1,109		1,126		1,132		1,115		2,243		2,229
Other income		765		1,018		467		348		523		1,783		760
Total noninterest income (loss)		5,122		6,908		(7,652)		8,995		7,353		12,030		8,666

Noninterest Expense
Salaries and employee benefits		19,493		20,887		18,178		21,438		21,109		40,380		44,758
Occupancy and equipment		3,534		3,793		3,701		3,541		3,760		7,327		7,364
Professional services		2,657		2,483		2,130		2,570		2,285		5,140		4,507
FDIC deposit insurance		943		977		485		738		615		1,920		1,035
Data processing		1,473		1,435		1,421		1,367		1,383		2,908		2,807
Depreciation and amortization		1,482		1,510		1,535		1,488		1,447		2,992		2,907
Other real estate owned/foreclosure expense		150		165		35		143		32		315		116
Other operating expenses		5,547		6,453		6,257		4,349		4,891		12,000		10,822
Total noninterest expense		35,279		37,703		33,742		35,634		35,522		72,982		74,316

Income Before Provision for Income Taxes		11,805		6,959		12,819		32,422		34,971		18,764		59,611

Provision for Income Taxes		3,177		1,801		2,570		8,980		9,936		4,978		16,357

Net Income	$	8,628	$	5,158	$	10,249	$	23,442	$	25,035	$	13,786	$	43,254

Basic earnings per common share	$	0.29	$	0.17	$	0.34	$	0.76	$	0.81	$	0.46	$	1.39
Diluted earnings per common share	$	0.29	$	0.17	$	0.34	$	0.76	$	0.81	$	0.46	$	1.39
Dividends per common share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	0.44	$	0.44

Basic average shares		30,090		30,265		30,420		30,695		30,937		30,177		31,095
Diluted average shares		30,090		30,265		30,420		30,695		30,937		30,177		31,095

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌9

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in thousands)	2023		2023		2022		2022		2022
ASSETS
Cash and due from banks	$	160,053	$	176,747	$	151,754	$	164,693	$	137,026
Securities held-to-maturity:
Mortgage-backed securities		7,865		7,870		7,875		7,880		7,885
Other securities, net		65,469		65,653		65,836		66,032		66,230
Securities available for sale:
Mortgage-backed securities		365,911		380,110		384,283		468,366		510,934
Other securities		503,645		431,818		351,074		351,495		346,720
Loans		6,832,425		6,904,176		6,934,769		6,956,674		6,760,393
Allowance for credit losses		(38,593)		(38,729)		(40,442)		(41,268)		(39,424)
Net loans		6,793,832		6,865,447		6,894,327		6,915,406		6,720,969
Interest and dividends receivable		52,911		46,836		45,048		42,571		38,811
Bank premises and equipment, net		22,182		21,567		21,750		22,376		22,285
Federal Home Loan Bank of New York stock		36,168		38,779		45,842		62,489		50,017
Bank owned life insurance		213,164		214,240		213,131		212,353		211,220
Goodwill		17,636		17,636		17,636		17,636		17,636
Core deposit intangibles		1,769		1,891		2,017		2,147		2,282
Right of use asset		41,526		42,268		43,289		44,885		46,687
Other assets		191,752		168,259		179,084		179,090		160,885
Total assets	$	8,473,883	$	8,479,121	$	8,422,946	$	8,557,419	$	8,339,587

LIABILITIES
Total deposits	$	6,723,690	$	6,734,090	$	6,485,342	$	6,125,305	$	6,407,577
Borrowed funds		857,400		887,509		1,052,973		1,572,830		1,089,621
Operating lease liability		44,402		45,353		46,125		48,330		50,346
Other liabilities		177,088		138,710		161,349		140,235		121,231
Total liabilities		7,802,580		7,805,662		7,745,789		7,886,700		7,668,775

STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized; none issued)		—		—		—		—		—
Common stock ($0.01 par value; 100,000,000 shares authorized)		341		341		341		341		341
Additional paid-in capital		263,744		262,876		264,332		263,755		262,860
Treasury stock		(104,574)		(97,760)		(98,535)		(90,977)		(88,342)
Retained earnings		547,811		545,786		547,507		543,894		527,217
Accumulated other comprehensive loss, net of taxes		(36,019)		(37,784)		(36,488)		(46,294)		(31,264)
Total stockholders' equity		671,303		673,459		677,157		670,719		670,812

Total liabilities and stockholders' equity	$	8,473,883	$	8,479,121	$	8,422,946	$	8,557,419	$	8,339,587

(In thousands)
Issued shares		34,088		34,088		34,088		34,088		34,088
Outstanding shares		28,961		29,488		29,476		29,851		29,980
Treasury shares		5,127		4,600		4,612		4,237		4,108

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌10

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Unaudited)


	For the three months ended										For the six months ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(In thousands)	2023		2023		2022		2022		2022		2023		2022
Interest-earning Assets:
Mortgage loans, net	$	5,308,567	$	5,333,274	$	5,338,612	$	5,340,694	$	5,178,029	$	5,320,852	$	5,165,121
Other loans, net		1,521,081		1,537,918		1,542,633		1,520,769		1,462,302		1,529,453		1,444,555
Total loans, net		6,829,648		6,871,192		6,881,245		6,861,463		6,640,331		6,850,305		6,609,676
Taxable securities:
Mortgage-backed securities		448,620		457,911		549,204		568,854		594,923		453,240		587,836
Other securities		471,600		411,723		371,897		362,629		333,158		441,827		280,245
Total taxable securities		920,220		869,634		921,101		931,483		928,081		895,067		868,081
Tax-exempt securities:
Other securities		66,632		66,828		67,022		67,211		67,315		66,730		62,490
Total tax-exempt securities		66,632		66,828		67,022		67,211		67,315		66,730		62,490
Interest-earning deposits and federal funds sold		169,520		189,023		176,323		118,913		104,956		179,218		115,752
Total interest-earning assets		7,986,020		7,996,677		8,045,691		7,979,070		7,740,683		7,991,320		7,655,999
Other assets		475,807		471,634		472,328		463,587		471,080		473,731		475,066
Total assets	$	8,461,827	$	8,468,311	$	8,518,019	$	8,442,657	$	8,211,763	$	8,465,051	$	8,131,065

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	124,041	$	134,945	$	146,598	$	154,545	$	156,785	$	129,463	$	156,689
NOW accounts		2,026,950		1,970,555		1,972,134		1,808,608		2,089,851		1,998,909		2,063,529
Money market accounts		1,754,574		2,058,523		2,146,649		2,136,829		2,231,743		1,905,709		2,242,626
Certificate of deposit accounts		2,046,960		1,679,517		1,350,683		1,057,733		820,476		1,864,254		854,970
Total due to depositors		5,952,525		5,843,540		5,616,064		5,157,715		5,298,855		5,898,335		5,317,814
Mortgagors' escrow accounts		97,410		70,483		82,483		68,602		97,496		84,021		84,574
Total interest-bearing deposits		6,049,935		5,914,023		5,698,547		5,226,317		5,396,351		5,982,356		5,402,388
Borrowings		706,924		789,535		963,662		1,326,770		941,023		748,001		876,877
Total interest-bearing liabilities		6,756,859		6,703,558		6,662,209		6,553,087		6,337,374		6,730,357		6,279,265
Noninterest-bearing demand deposits		849,682		896,462		979,836		1,050,296		1,044,553		872,943		1,023,181
Other liabilities		181,343		185,220		199,809		164,992		162,380		183,270		158,400
Total liabilities		7,787,884		7,785,240		7,841,854		7,768,375		7,544,307		7,786,570		7,460,846
Equity		673,943		683,071		676,165		674,282		667,456		678,481		670,219
Total liabilities and equity	$	8,461,827	$	8,468,311	$	8,518,019	$	8,442,657	$	8,211,763	$	8,465,051	$	8,131,065

Net interest-earning assets	$	1,229,161	$	1,293,119	$	1,383,482	$	1,425,983	$	1,403,309	$	1,260,963	$	1,376,734

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌11

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

NET INTEREST INCOME AND NET INTEREST MARGIN

(Unaudited)


	For the three months ended															For the six months ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022			2023			2022
Interest Income:
Mortgage loans, net	$	63,688		$	62,054		$	60,946		$	58,374		$	54,775		$	125,742		$	108,745
Other loans, net		21,689			20,835			20,087			17,172			14,417			42,524			27,963
Total loans, net		85,377			82,889			81,033			75,546			69,192			168,266			136,708
Taxable securities:
Mortgage-backed securities		2,976			2,281			2,425			2,466			2,356			5,257			4,523
Other securities		5,847			4,611			3,723			2,839			2,090			10,458			3,209
Total taxable securities		8,823			6,892			6,148			5,305			4,446			15,715			7,732
Tax-exempt securities:
Other securities		480			477			489			492			625			957			1,216
Total tax-exempt securities		480			477			489			492			625			957			1,216
Interest-earning deposits and federal funds sold		1,982			1,959			1,702			506			159			3,941			210
Total interest-earning assets		96,662			92,217			89,372			81,849			74,422			188,879			145,866
Interest Expense:
Deposits:
Savings accounts	$	140		$	126		$	59		$	53		$	50		$	266		$	99
NOW accounts		16,152			13,785			9,515			3,640			1,405			29,937			2,198
Money market accounts		14,625			14,102			10,532			5,280			1,952			28,727			3,227
Certificate of deposit accounts		15,281			11,007			7,037			2,948			1,273			26,288			2,562
Total due to depositors		46,198			39,020			27,143			11,921			4,680			85,218			8,086
Mortgagors' escrow accounts		51			36			83			44			6			87			8
Total interest-bearing deposits		46,249			39,056			27,226			11,965			4,686			85,305			8,094
Borrowings		6,934			7,799			7,843			8,574			4,875			14,733			9,308
Total interest-bearing liabilities		53,183			46,855			35,069			20,539			9,561			100,038			17,402
Net interest income- tax equivalent	$	43,479		$	45,362		$	54,303		$	61,310		$	64,861		$	88,841		$	128,464
Included in net interest income above:
Prepayment penalties received on loans and securities and net of reversals and recovered interest from nonaccrual loans	$	315		$	680		$	1,080		$	1,368		$	2,281		$	995		$	3,997
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income		(205)			100			936			28			(60)			(105)			(189)
Purchase accounting adjustments		340			306			342			775			367			646			1,425
Interest-earning Assets Yields:
Mortgage loans, net		4.80	%		4.65	%		4.57	%		4.37	%		4.23	%		4.73	%		4.21	%
Other loans, net		5.70			5.42			5.21			4.52			3.94			5.56			3.87
Total loans, net		5.00			4.83			4.71			4.40			4.17			4.91			4.14
Taxable securities:
Mortgage-backed securities		2.65			1.99			1.77			1.73			1.58			2.32			1.54
Other securities		4.96			4.48			4.00			3.13			2.51			4.73			2.29
Total taxable securities		3.84			3.17			2.67			2.28			1.92			3.51			1.78
Tax-exempt securities: (1)
Other securities		2.88			2.86			2.92			2.93			3.71			2.87			3.89
Total tax-exempt securities		2.88			2.86			2.92			2.93			3.71			2.87			3.89
Interest-earning deposits and federal funds sold		4.68			4.15			3.86			1.70			0.61			4.40			0.36
Total interest-earning assets (1)		4.84	%		4.61	%		4.44	%		4.10	%		3.85	%		4.73	%		3.81	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.45	%		0.37	%		0.16	%		0.14	%		0.13	%		0.41	%		0.13	%
NOW accounts		3.19			2.80			1.93			0.81			0.27			3.00			0.21
Money market accounts		3.33			2.74			1.96			0.99			0.35			3.01			0.29
Certificate of deposit accounts		2.99			2.62			2.08			1.11			0.62			2.82			0.60
Total due to depositors		3.10			2.67			1.93			0.92			0.35			2.89			0.30
Mortgagors' escrow accounts		0.21			0.20			0.40			0.26			0.02			0.21			0.02
Total interest-bearing deposits		3.06			2.64			1.91			0.92			0.35			2.85			0.30
Borrowings		3.92			3.95			3.26			2.58			2.07			3.94			2.12
Total interest-bearing liabilities		3.15	%		2.80	%		2.11	%		1.25	%		0.60	%		2.97	%		0.55	%

Net interest rate spread (tax equivalent) (1)		1.69	%		1.81	%		2.33	%		2.85	%		3.25	%		1.76	%		3.26	%
Net interest margin (tax equivalent) (1)		2.18	%		2.27	%		2.70	%		3.07	%		3.35	%		2.22	%		3.36	%
Ratio of interest-earning assets to interest-bearing liabilities		1.18	X		1.19	X		1.21	X		1.22	X		1.22	X		1.19	X		1.22	X

(1)

Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌12

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition


											2Q23 vs.		2Q23 vs.
	June 30,		March 31,		December 31,		September 30,		June 30,		1Q23		2Q22
(Dollars in thousands)	2023		2023		2022		2022		2022		% Change		% Change
Noninterest bearing	$	827,820	$	872,254	$	921,238	$	992,378	$	1,081,208	(5.1)	%	(23.4)	%
Interest bearing:
Certificate of deposit accounts		2,232,696		1,880,260		1,526,338		1,036,107		906,943	18.7		146.2
Savings accounts		118,886		128,245		143,641		150,552		154,670	(7.3)		(23.1)
Money market accounts		1,594,637		1,855,781		2,099,776		2,113,256		2,229,993	(14.1)		(28.5)
NOW accounts		1,891,834		1,918,977		1,746,190		1,762,468		1,977,186	(1.4)		(4.3)
Total interest-bearing deposits		5,838,053		5,783,263		5,515,945		5,062,383		5,268,792	0.9		10.8
Total due to depositors		6,665,873		6,655,517		6,437,183		6,054,761		6,350,000	0.2		5.0
Mortgagors' escrow deposits		57,817		78,573		48,159		70,544		57,577	(26.4)		0.4
Total deposits	$	6,723,690	$	6,734,090	$	6,485,342	$	6,125,305	$	6,407,577	(0.2)	%	4.9	%

Loan Composition


											2Q23 vs.		2Q23 vs.
	June 30,		March 31,		December 31,		September 30,		June 30,		1Q23		2Q22
(Dollars in thousands)	2023		2023		2022		2022		2022		% Change		% Change
Multifamily residential	$	2,593,955	$	2,601,174	$	2,601,384	$	2,608,192	$	2,531,858	(0.3)	%	2.5	%
Commercial real estate		1,917,749		1,904,293		1,913,040		1,914,326		1,864,507	0.7		2.9
One-to-four family ― mixed-use property		542,368		549,207		554,314		560,885		561,100	(1.2)		(3.3)
One-to-four family ― residential		224,039		232,302		235,067		233,469		242,729	(3.6)		(7.7)
Co-operative apartments		6,016		6,115		6,179		7,015		8,130	(1.6)		(26.0)
Construction		57,325		60,486		70,951		63,651		72,148	(5.2)		(20.5)
Mortgage Loans		5,341,452		5,353,577		5,380,935		5,387,538		5,280,472	(0.2)		1.2

Small Business Administration (1)		22,404		22,860		23,275		27,712		40,572	(2.0)		(44.8)
Commercial business and other		1,466,358		1,518,756		1,521,548		1,532,497		1,431,417	(3.5)		2.4
Nonmortgage loans		1,488,762		1,541,616		1,544,823		1,560,209		1,471,989	(3.4)		1.1

Gross loans		6,830,214		6,895,193		6,925,758		6,947,747		6,752,461	(0.9)		1.2
Net unamortized premiums and unearned loan fees (2)		2,211		8,983		9,011		8,927		7,932	(75.4)		(72.1)
Allowance for credit losses		(38,593)		(38,729)		(40,442)		(41,268)		(39,424)	(0.4)		(2.1)
Net loans	$	6,793,832	$	6,865,447	$	6,894,327	$	6,915,406	$	6,720,969	(1.0)	%	1.1	%

(1)	Includes $4.0 million, $4.8 million, $5.2 million, $9.6 million, and $22.2 million of PPP loans at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

(2)	Includes $4.8 million, $5.1 million, $5.4 million, $5.8 million, and $6.6 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌13

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings


	For the three months ended										For the six months ended
	June 30,		March 31,		December 31,		September 30,		June 30,			June 30,	June 30,
(In thousands)	2023		2023		2022		2022		2022		2023		2022
Multifamily residential	$	31,901	$	42,164	$	65,347	$	173,980	$	136,902	$	74,065	$	235,082
Commercial real estate		38,523		15,570		20,750		77,777		164,826		54,093		209,928
One-to-four family – mixed-use property		5,812		4,938		4,489		12,383		12,228		10,750		20,726
One-to-four family – residential		63		4,296		7,485		4,102		4,211		4,359		13,448
Co-operative apartments		—		—		—		—		—		—		24
Construction		8,811		10,592		7,301		7,170		8,319		19,403		17,121
Mortgage Loans		85,110		77,560		105,372		275,412		326,486		162,670		496,329

Small Business Administration		820		318		665		46		2,750		1,138		2,750
Commercial business and other		72,850		95,668		119,191		188,202		174,551		168,518		334,027
Nonmortgage Loans		73,670		95,986		119,856		188,248		177,301		169,656		336,777

Total Closings	$	158,780	$	173,546	$	225,228	$	463,660	$	503,787	$	332,326	$	833,106

Weighted Average Rate on Loan Closings


	For the three months ended
	June 30,		March 31,		December 31,		September 30,		June 30,
Loan type	2023		2023		2022		2022		2022
Mortgage loans	6.62	%	6.30	%	5.59	%	4.37	%	3.76	%
Nonmortgage loans	7.76		7.58		6.57		4.93		4.21
Total loans	7.14	%	7.01	%	6.10	%	4.60	%	3.92	%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌14

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Credit Losses


	For the three months ended															For the six months ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022			2023			2022
Allowance for credit losses - loans
Beginning balances	$	38,729		$	40,442		$	41,268		$	39,424		$	37,433		$	40,442		$	37,135

Net loan charge-off (recoveries):
Multifamily residential		—			(1)			132			—			(1)			(1)			(1)
Commercial real estate		8			—			—			—			—			8			—
One-to-four family – residential		4			(36)			17			2			(2)			(32)			(4)
Small Business Administration		(158)			(6)			(9)			(12)			13			(164)			1,028
Taxi medallion		—			—			—			—			(435)			—			(447)
Commercial business and other		1,706			9,277			671			300			(76)			10,983			(142)
Total		1,560			9,234			811			290			(501)			10,794			434

Provision (benefit) for loan losses		1,424			7,521			(15)			2,134			1,490			8,945			2,723

Ending balance	$	38,593		$	38,729		$	40,442		$	41,268		$	39,424		$	38,593		$	39,424

Gross charge-offs	$	1,731		$	9,298		$	1,938		$	324		$	50		$	11,029		$	1,086
Gross recoveries		171			64			1,127			34			551			235			652

Allowance for credit losses - loans to gross loans		0.57	%		0.56	%		0.58	%		0.59	%		0.58	%		0.57	%		0.58	%
Net loan charge-offs (recoveries) to average loans		0.09			0.54			0.05			0.02			(0.03)			0.32			0.01

Nonperforming Assets


	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022
Loans 90 Days Or More Past Due and Still Accruing:
Commercial real estate	$	—		$	—		$	—		$	2,000		$	—
Construction		—			—			2,600			—			—
Commercial business and other		—			—			—			—			100
Total		—			—			2,600			2,000			100

Nonaccrual Loans:
Multifamily residential		3,206			3,628			3,206			3,414			3,414
Commercial real estate		—			—			237			1,851			242
One-to-four family - mixed-use property(1)		790			790			790			790			790
One-to-four family - residential		5,218			4,961			4,425			4,655			5,055
Construction		—			—			—			—			856
Small Business Administration		1,119			937			937			937			937
Commercial business and other(1)		8,304			10,860			20,187			15,356			16,554
Total		18,637			21,176			29,782			27,003			27,848

Total Nonperforming Loans (NPLs)		18,637			21,176			32,382			29,003			27,948

Total Nonaccrual HTM Securities		20,981			20,981			20,981			20,981			20,981

Total Nonperforming Assets	$	39,618		$	42,157		$	53,363		$	49,984		$	48,929

Nonperforming Assets to Total Assets		0.47	%		0.50	%		0.63	%		0.58	%		0.59	%
Allowance for Credit Losses to NPLs		207.1	%		182.9	%		124.9	%		142.3	%		141.1	%

(1)

Adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023; Not included in the above analysis are nonaccrual performing TDR one-to-four family – mixed use property loans totaling $0.2 million in 4Q22 and in 3Q22 and $0.3 million in 2Q22; nonaccrual performing TDR commercial business loans totaling less than $0.1 million in 4Q22, $2.9 million in 3Q22, and $2.8 million in 2Q22.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌15

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

The variance in GAAP and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to borrowings carried at fair value under the fair value option.

Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense and Tangible Book Value per common share are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears below in tabular form. The Company believes that these measures are useful for both investors and management 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 the Company’s competitors. These measures should not be viewed as a substitute for net income. The Company believes that 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. The Company believes these measures facilitate comparison of the quality and composition of the Company’s capital over time and in comparison, to its competitors. These measures should not be viewed as a substitute for total shareholders’ equity.

These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌16

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)


	For the three months ended															For the six months ended
(Dollars in thousands,	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
except per share data)	2023			2023			2022			2022			2022			2023			2022

GAAP income before income taxes	$	11,805		$	6,959		$	12,819		$	32,422		$	34,971		$	18,764		$	59,611

Net (gain) loss from fair value adjustments (Noninterest income (loss))		(294)			(2,619)			622			(5,626)			(2,533)			(2,913)			(724)
Net loss on sale of securities (Noninterest income (loss))		—			—			10,948			—			—			—			—
Life insurance proceeds (Noninterest income (loss))		(561)			—			(286)			—			(1,536)			(561)			(1,536)
Net gain on disposition of assets (Noninterest income (loss))		—			—			(104)			—			—			—			—
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)		205			(100)			(936)			(28)			60			105			189
Net amortization of purchase accounting adjustments and intangibles (Various)		(227)			(188)			(219)			(650)			(237)			(415)			(1,161)

Core income before taxes		10,928			4,052			22,844			26,118			30,725			14,980			56,379

Provision for core income taxes		3,074			1,049			5,445			7,165			9,207			4,123			15,892

Core net income	$	7,854		$	3,003		$	17,399		$	18,953		$	21,518		$	10,857		$	40,487

GAAP diluted earnings per common share	$	0.29		$	0.17		$	0.34		$	0.76		$	0.81		$	0.46		$	1.39
Net (gain) loss from fair value adjustments, net of tax		(0.01)			(0.06)			0.02			(0.13)			(0.06)			(0.07)			(0.02)
Net loss on sale of securities, net of tax		—			—			0.27			—			—			—			—
Life insurance proceeds		(0.02)			—			(0.01)			—			(0.05)			(0.02)			(0.05)
Net gain on disposition of assets, net of tax		—			—			—			—			—			—			—
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		—			—			(0.02)			—			—			—			—
Net amortization of purchase accounting adjustments, net of tax		(0.01)			(0.01)			(0.01)			(0.02)			(0.01)			(0.01)			(0.03)

Core diluted earnings per common share(1)	$	0.26		$	0.10		$	0.57		$	0.62		$	0.70		$	0.36		$	1.30

Core net income, as calculated above	$	7,854		$	3,003		$	17,399		$	18,953		$	21,518		$	10,857		$	40,487
Average assets		8,461,827			8,468,311			8,518,019			8,442,657			8,211,763			8,465,051			8,131,065
Average equity		673,943			683,071			676,165			674,282			667,456			678,481			670,219
Core return on average assets(2)		0.37	%		0.14	%		0.82	%		0.90	%		1.05	%		0.26	%		1.00	%
Core return on average equity(2)		4.66	%		1.76	%		10.29	%		11.24	%		12.90	%		3.20	%		12.08	%

(1)

Core diluted earnings per common share may not foot due to rounding.

(2)

Ratios are calculated on an annualized basis.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌17

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE and PRE-PROVISION

PRE-TAX NET REVENUE

(Unaudited)


	For the three months ended															For the six months ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022			2023			2022

GAAP Net interest income	$	43,378		$	45,262		$	54,201		$	61,206		$	64,730		$	88,640		$	128,209
Net (gain) loss from fair value adjustments on qualifying hedges		205			(100)			(936)			(28)			60			105			189
Net amortization of purchase accounting adjustments		(340)			(306)			(342)			(775)			(367)			(646)			(1,425)
Core Net interest income	$	43,243		$	44,856		$	52,923		$	60,403		$	64,423		$	88,099		$	126,973

GAAP Noninterest income (loss)	$	5,122		$	6,908		$	(7,652)		$	8,995		$	7,353		$	12,030		$	8,666
Net (gain) loss from fair value adjustments		(294)			(2,619)			622			(5,626)			(2,533)			(2,913)			(724)
Net loss on sale of securities		—			—			10,948			—			—			—			—
Life insurance proceeds		(561)			—			(286)			—			(1,536)			(561)			(1,536)
Net gain on sale of assets		—			—			(104)			—			—			—			—
Core Noninterest income	$	4,267		$	4,289		$	3,528		$	3,369		$	3,284		$	8,556		$	6,406

GAAP Noninterest expense	$	35,279		$	37,703		$	33,742		$	35,634		$	35,522		$	72,982		$	74,316
Net amortization of purchase accounting adjustments		(113)			(118)			(123)			(125)			(130)			(231)			(264)
Core Noninterest expense	$	35,166		$	37,585		$	33,619		$	35,509		$	35,392		$	72,751		$	74,052

Net interest income	$	43,378		$	45,262		$	54,201		$	61,206		$	64,730		$	88,640		$	128,209
Noninterest income (loss)		5,122			6,908			(7,652)			8,995			7,353			12,030			8,666
Noninterest expense		(35,279)			(37,703)			(33,742)			(35,634)			(35,522)			(72,982)			(74,316)
Pre-provision pre-tax net revenue	$	13,221		$	14,467		$	12,807		$	34,567		$	36,561		$	27,688		$	62,559

Core:
Net interest income	$	43,243		$	44,856		$	52,923		$	60,403		$	64,423		$	88,099		$	126,973
Noninterest income		4,267			4,289			3,528			3,369			3,284			8,556			6,406
Noninterest expense		(35,166)			(37,585)			(33,619)			(35,509)			(35,392)			(72,751)			(74,052)
Pre-provision pre-tax net revenue	$	12,344		$	11,560		$	22,832		$	28,263		$	32,315		$	23,904		$	59,327
Efficiency Ratio		74.0	%		76.5	%		59.6	%		55.7	%		52.3	%		75.3	%		55.5	%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌18

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN

to CORE NET INTEREST INCOME

(Unaudited)


	For the three months ended															For the six months ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022			2023			2022
GAAP net interest income	$	43,378		$	45,262		$	54,201		$	61,206		$	64,730		$	88,640		$	128,209
Net (gain) loss from fair value adjustments on qualifying hedges		205			(100)			(936)			(28)			60			105			189
Net amortization of purchase accounting adjustments		(340)			(306)			(342)			(775)			(367)			(646)			(1,425)
Tax equivalent adjustment		101			100			102			104			131			201			255
Core net interest income FTE	$	43,344		$	44,956		$	53,025		$	60,507		$	64,554		$	88,300		$	127,228

Total average interest-earning assets (1)	$	7,990,331		$	8,001,271		$	8,050,601		$	7,984,558		$	7,746,640		$	7,995,772		$	7,662,315
Core net interest margin FTE		2.17	%		2.25	%		2.63	%		3.03	%		3.33	%		2.21	%		3.32	%

GAAP interest income on total loans, net	$	85,377		$	82,889		$	81,033		$	75,546		$	69,192		$	168,266		$	136,708
Net (gain) loss from fair value adjustments on qualifying hedges - loans		157			(101)			(936)			(28)			60			56			189
Net amortization of purchase accounting adjustments		(345)			(316)			(372)			(783)			(357)			(661)			(1,474)
Core interest income on total loans, net	$	85,189		$	82,472		$	79,725		$	74,735		$	68,895		$	167,661		$	135,423

Average total loans, net (1)	$	6,834,644		$	6,876,495		$	6,886,900		$	6,867,758		$	6,647,131		$	6,855,454		$	6,616,860
Core yield on total loans		4.99	%		4.80	%		4.63	%		4.35	%		4.15	%		4.89	%		4.09	%

(1)	Excludes purchase accounting average balances for all periods presented.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌19

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CALCULATION OF TANGIBLE STOCKHOLDERS’

COMMON EQUITY to TANGIBLE ASSETS

(Unaudited)


	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2023			2023			2022			2022			2022
Total Equity	$	671,303		$	673,459		$	677,157		$	670,719		$	670,812
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit intangibles		(1,769)			(1,891)			(2,017)			(2,147)			(2,282)
Tangible Stockholders' Common Equity	$	651,898		$	653,932		$	657,504		$	650,936		$	650,894

Total Assets	$	8,473,883		$	8,479,121		$	8,422,946		$	8,557,419		$	8,339,587
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit intangibles		(1,769)			(1,891)			(2,017)			(2,147)			(2,282)
Tangible Assets	$	8,454,478		$	8,459,594		$	8,403,293		$	8,537,636		$	8,319,669

Tangible Stockholders' Common Equity to Tangible Assets		7.71	%		7.73	%		7.82	%		7.62	%		7.82	%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌20