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): April 23, 2024

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 April 23, 2024, 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 April 23, 2024

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: April 23, 2024	By:	/s/ SUSAN K. CULLEN
		Susan K. Cullen
		Senior Executive Vice President, Treasurer and Chief Financial Officer

EX-99 2 ffic-20240423xex99.htm EX-99.1 Flushing Financial 1Q24 Earnings Press Release;

Exhibit 99.1

0	● ●
	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 1Q24 GAAP and Core EPS of $0.12 and $0.14, Respectively; Excellent Quality Driven by Low Risk Credit Profile
“We take pride in what we believe is our low risk credit profile that has performed well over our 95-year history. While there have been increased concerns about commercial real estate loans, especially New York City office and rent regulated multifamily exposure, hallmarks of our risk averse credit culture are demonstrated by only $4,000 of net charge-offs, 24 bps of 30-89 day delinquencies to gross loans, and decreased criticized and classified loans of 23% and flat NPAs during 1Q24. The drivers of this excellent credit performance are centered in our conservative underwriting with 89% of the portfolio secured by real estate, average LTV ratios of less than 36%, multifamily and investor commercial real estate weighted average DCRs of 1.8x, and strong sponsor support. Our exposure to New York City office buildings is very low - approximately 0.5% of total loans, all of which are performing. Our multifamily portfolio has only 18 bps of NPLs, 41 bps of 30-89 day delinquencies, and 54 bps of criticized and classified loans. Additionally, over 99% of our real estate loans that repriced in 1Q24 are current. Our conservative lending profile has served us well. We believe the foundation for our long-term success is pillared by our four areas of focus, which include 1) increasing NIM and reducing volatility; 2) maintaining credit discipline; 3) preserving strong liquidity and capital; and 4) bending the expense curve. While there is more work to do, we continue to make progress and are committed to achieving these goals.” - John R. Buran, President and CEO
UNIONDALE, N.Y., April 23, 2024 – Growth in Average Deposits; GAAP and Core NIM Compress. The Company reported first quarter 2024 GAAP and Core EPS of $0.12 and $0.14, respectively, compared to $0.13, and $0.06, respectively, a year ago. 1Q24 GAAP and Core NIM were both 2.06%, down 21 bps and 19 bps YoY, and 23 bps and 25 bps QoQ, respectively. Absent episodic items1, the NIM was 2.01% in 1Q24 compared to 2.21% a year ago and 2.14% in the prior quarter. The expected NIM compression was driven by CD repricing, the absence of loan originations that met both our underwriting and pricing criteria, and increased cash from deposit growth. Average total deposits increased 4.0% YoY and 2.9% QoQ, Credit Quality Improves; Capital Remains Solid. Criticized and classified loans to loans declined to 0.87% in 1Q24, compared to 1.11% in 4Q23, while nonperforming assets to total assets decreased to 53 bps compared to 54 bps in 4Q23. Net charge-offs were only $4,000 in 1Q24. Capital continues to be sound with TCE/TA2 of 7.40% at 1Q24 compared to 7.64% at 4Q23.

Key Financial Metrics3


	1Q24	4Q23	3Q23	2Q23	1Q23
GAAP:
EPS	$0.12	$0.27	$0.26	$0.29	$0.13
ROAA (%)	0.17	0.38	0.37	0.41	0.19
ROAE (%)	2.20	4.84	4.64	5.16	2.37
NIM FTE3 (%)	2.06	2.29	2.22	2.18	2.27
Core:
EPS	$0.14	$0.25	$0.25	$0.26	$0.06
ROAA (%)	0.20	0.35	0.36	0.37	0.09
ROAE (%)	2.58	4.51	4.49	4.70	1.11
Core NIM FTE (%)	2.06	2.31	2.13	2.17	2.25
Credit Quality:
NPAs/Loans & OREO (%)	0.68	0.67	0.56	0.58	0.61
ACLs/Loans (%)	0.60	0.58	0.57	0.57	0.56
ACLs/NPLs (%)	164.13	159.55	225.38	207.08	182.89
NCOs/Avg Loans (%)	-	-	-	0.09	0.54
Balance Sheet:
Avg Loans ($B)	$6.8	$6.9	$6.8	$6.8	$6.9
Avg Dep ($B)	$7.1	$6.9	$6.8	$6.9	$6.8
Book Value/Share	$23.04	$23.21	$23.06	$23.14	$22.80
Tangible BV/Share	$22.39	$22.54	$22.39	$22.47	$22.14
TCE/TA (%)	7.40	7.64	7.56	7.70	7.72

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.

1 Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments 2 Tangible Common Equity (“TCE”)/Total Assets (“TA”) 3 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.” 4 Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”).

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


1Q24 Highlights
● Net interest margin FTE decreased 21 bps YoY and 23 bps QoQ to 2.06%; Core net interest margin FTE decreased 19 bps YoY and 25 bps QoQ to 2.06%; absent prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion the NIM was 2.01% in 1Q24 compared to 2.21% in 1Q23 and 2.14% in 4Q23. ● Average total deposits increased 4.0% YoY and 2.9% QoQ to $7.1 billion; Average noninterest bearing deposits were 11.8% of total average deposits compared to 13.2% in 1Q23 and 12.7% in 4Q23. Average CDs were $2.4 billion, up 43.3% YoY and 2.8% QoQ; During March and April, new CD rates were lowered across most products. ● Period end net loans decreased 1.2% YoY and QoQ to $6.8 billion; Loan closings were $130.0 million down 25.1% YoY and 46.8% QoQ; The yields on closings increased 19 bps YoY, but decreased 49 bps QoQ to 7.20%; Back-to-back swap loan originations were $15.3 million compared to $121.6 million in 4Q23 and generated $0.2 million and $1.5 million of noninterest income, respectively; Loan pipeline decreased 34.6% YoY, but increased 6.7% QoQ to $173.9 million; Approximately 22% of the loan pipeline consists of back-to-back swap loans ● NPAs increased slightly to $46.3 million from $42.2 million a year ago and from $46.2 million in the prior quarter ● 1Q24 noninterest expense includes $1.6 million of seasonal compensation expense that are not expected to repeat in 2Q24 ● Provision for credit losses was $0.6 million in 1Q24 compared to $7.5 million in 1Q23 and $1.0 million in 4Q23; Net charge-offs were $4,000 in 1Q24 compared to $9.2 million in 1Q23 and $60,000 in 4Q23 ● Tangible Common Equity to Tangible Assets was 7.40% at March 31, 2024, compared to 7.64% at December 31, 2023; Tangible book value was $22.39 compared to $22.14 a year ago
Areas of Focus
Increase NIM and Reduce Volatility	● GAAP and Core NIM decreased as anticipated by 23 bps and 25 bps QoQ, respectively, in 1Q24 ● Absent episodic items1, the NIM was 2.01% in 1Q24 compared to 2.14% in 4Q23 ● Remain largely interest rate neutral to a 100 bps change in rates ● Approximately 25% of the loan portfolio consists of floating rate loans (including interest rate hedges) ● Average noninterest bearing decreased 4.5% QoQ and accounted for 11.8% of average total deposits
Maintain Credit Discipline	● Approximately 89% of the loan portfolio is collateralized by real estate with an average loan to value of less than 36% ● Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans ● NPAs are a low 53 bps of assets and criticized and classified loans are 0.87% of loans ● Manhattan office buildings exposure is minimal at 0.5% of net loans, none of which are nonperforming
Preserve Strong Liquidity and Capital	● Maintaining ample liquidity with $2.9 billion of undrawn lines and resources as of March 31, 2024; this increased to $3.3 billion as of April 15, 2024 ● Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 34% of total deposits ● Total average deposits increased 4.0% YoY and 2.9% QoQ ● Checking account openings declined 20.6% YoY in 1Q24, but remain above 1Q22 levels ● Tangible Common Equity to Tangible Assets was 7.40% at March 31, 2024, down 24 bps QoQ Leverage ratio was 8.32% at March 31, 2024 compared to 8.47% at December 31, 2023
Bend the Expense Curve	● GAAP noninterest expense to average assets was 1.83% in 1Q24 compared to 1.85% in 1Q23 and 1.90% in 4Q23 ● GAAP and Core noninterest expense growth was 1.9% YoY ● 1Q24 seasonal compensation expense was $1.6 million compared to $4.1 million a year ago

Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments, which totaled $1.0 million or 5 bps in 1Q24 compared to $3.0 million or 15 bps in 4Q23

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

Income Statement Highlights


						YoY		QoQ
($000s, except EPS)	1Q24	4Q23	3Q23	2Q23	1Q23	Change		Change

Net Interest Income	$42,397	$46,085	$44,427	$43,378	$45,262	(6.3)	%	(8.0)	%
Provision for Credit Losses	592	998	596	1,416	7,508	(92.1)		(40.7)
Noninterest Income	3,084	7,402	3,309	5,020	6,857	(55.0)		(58.3)
Noninterest Expense	39,892	40,735	36,388	35,110	39,156	1.9		(2.1)
Income Before Income Taxes	4,997	11,754	10,752	11,872	5,455	(8.4)		(57.5)
Provision for Income Taxes	1,313	3,655	2,917	3,186	1,411	(6.9)		(64.1)
Net Income	$3,684	$8,099	$7,835	$8,686	$4,044	(8.9)		(54.5)
Diluted EPS	$0.12	$0.27	$0.26	$0.29	$0.13	(7.7)		(55.6)
Avg. Diluted Shares (000s)	29,742	29,650	29,703	30,090	30,265	(1.7)		0.3

Core Net Income1	$4,312	$7,546	$7,571	$7,912	$1,889	128.3		(42.9)
Core EPS1	$0.14	$0.25	$0.25	$0.26	$0.06	133.3		(44.0)

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income decreased YoY and QoQ.

●

Net Interest Margin FTE of 2.06% decreased 21 bps YoY and 23 bps QoQ

●

Prepayment penalty income, customer swap termination fees, 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 $1.0 million (5 bps to the NIM) compared to $3.0 million (15 bps) in 4Q23, $2.6 million (13 bps to the NIM) in 3Q23, $0.5 million (3 bps) in 2Q23, and $1.1 million (6 bps) in 1Q23

●

Excluding the items in the previous bullet, net interest margin was 2.01% in 1Q24, 2.14% in 4Q23, 2.09% in 3Q23, 2.15% in 2Q23, and 2.21% in 1Q23

The provision for credit losses decreased YoY and QoQ.

●

Net charge-offs (recoveries) were $4,000 (less than 1 bp of average loans) in 1Q24 compared to $60,000 in 4Q23 (less than 1 bp of average loans), $(42,000) in 3Q23 (less than (1) bp of average loans), $1.6 million in 2Q23 (9 bps of average loans), and $9.2 million in 1Q23 (54 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 decreased YoY and QoQ.

●

Back-to-back swap loan closings of $15.3 million in 1Q24 (compared to $121.6 million in 4Q23 and none in 1Q23) and generated $0.2 million of fee income compared to $1.5 million in 4Q23

●

Net gains (losses) from fair value adjustments were $(0.8) million in 1Q24 ($(0.02) per share, net of tax), $0.9 million in 4Q23 ($0.02 per share, net of tax), $(1.2) million in 3Q23 ($(0.03) per share, net of tax), $0.3 million in 2Q23 ($0.01 per share, net of tax), and $2.6 million in 1Q23 ($0.06 per share, net of tax)

●

Life insurance proceeds were $0.7 million in 4Q23 ($0.02 per share), $23,000 in 3Q23 (less than $0.01 per share), and $0.6 million ($0.02 per share) in 2Q23

●

Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $3.9 million in 1Q24, down 7.6% YoY and 32.4% QoQ

●

4Q23 other fee income includes net realized gains on the sale of assets and other dividends from nonqualified plans that are expected to normalize in future periods

Noninterest expense increased slightly YoY but declined QoQ.

●

Seasonal compensation expense was $1.6 million in 1Q24 compared to $4.1 million in 1Q23

●

Excluding the effects of immaterial adjustments, core operating expenses were $39.8 million in 1Q24, up 1.9% YoY, but down 0.8% QoQ

●

GAAP noninterest expense to average assets was 1.83% in 1Q24, 1.90% in 4Q23, 1.71% in 3Q23, 1.66% in 2Q23, and 1.85% in 1Q23

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

Provision for income taxes decreased YoY and QoQ.

●

The effective tax rate was 26.3% in 1Q24, 31.1% in 4Q23, 27.1% in 3Q23, 26.8% in 2Q23, and 25.9% in 1Q23

●

The 4Q23 effective tax rate increased as a result of preferential tax items having a smaller impact due to higher pre-tax income than estimated in 3Q23 and 2Q23

Balance Sheet, Credit Quality, and Capital Highlights


						YoY		QoQ
	1Q24	4Q23	3Q23	2Q23	1Q23	Change		Change
Averages ($MM)
Loans	$6,804	$6,868	$6,813	$6,830	$6,871	(1.0)	%	(0.9)	%
Total Deposits	7,081	6,884	6,819	6,900	6,810	4.0		2.9

Credit Quality ($000s)
Nonperforming Loans	$24,829	$25,172	$17,405	$18,637	$21,176	17.3	%	(1.4)	%
Nonperforming Assets	46,254	46,153	38,386	39,618	42,157	9.7		0.2
Criticized and Classified Loans	59,021	76,719	74,169	48,675	58,130	1.5		(23.1)
Criticized and Classified Assets	80,446	97,700	95,150	69,656	79,111	1.7		(17.7)
Allowance for Credit Losses/Loans (%)	0.60	0.58	0.57	0.57	0.56	4	bps	2	bps

Capital
Book Value/Share	$23.04	$23.21	$23.06	$23.14	$22.80	1.1	%	(0.7)	%
Tangible Book Value/Share	22.39	22.54	22.39	22.47	22.14	1.1		(0.7)
Tang. Common Equity/Tang. Assets (%)	7.40	7.64	7.56	7.70	7.72	(32)	bps	(24)	bps
Leverage Ratio (%)	8.32	8.47	8.51	8.54	8.56	(24)		(15)

Average loans decreased slightly YoY and QoQ.

●

Period end net loans totaled $6.8 billion, down 1.2% YoY and QoQ

●

Total loan closings were $130.0 million in 1Q24, $244.3 million in 4Q23, $241.5 million in 3Q23, $158.8 million in 2Q23, and $173.5 million in 1Q23; the loan pipeline was $173.9 million at March 31, 2024, down 34.6% YoY, but up 6.7% QoQ

●

The diversified loan portfolio is approximately 89% collateralized by real estate with an average loan-to-value ratio of <36%

●

Manhattan office buildings exposure is minimal at 0.5% of net loans with all loans performing

Average total deposits increased YoY and QoQ.

●

Average noninterest bearing deposits decreased 6.9% YoY and 4.5% QoQ and comprised 11.8% of average total deposits in 1Q24 compared to 13.2% a year ago

●

Average CDs totaled $2.4 billion, up 43.3% YoY and 2.8% QoQ; approximately $450 million of non-swapped CDs are due to mature at a rate of 4.15% in 2Q24

Credit Quality: Nonperforming loans increased YoY but declined QoQ.

●

Criticized and classified loans were 87 bps of gross loans at 1Q24 compared to 111 bps at 4Q23, 108 bps at 3Q23, 71 bps at 2Q23, and 84 bps at 1Q23

●

Allowance for credit losses were 164.1% of nonperforming loans at 1Q24 compared to 182.9% at 1Q23 and 159.5% at 4Q23

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased 1.1% YoY to $23.04 and $22.39, respectively.

●

The Company paid a dividend of $0.22 per share in 1Q24; 807,964 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 7.40% at March 31, 2024, compared to 7.72% at March 31, 2023, and 7.64% at December 31, 2023

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

Conference Call Information

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, April 24, 2024, 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=DCkbMHoc

●

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

●

Replay Access Code: 7388314

●

The conference call will be simultaneously webcast and archived

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, 2023 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, 718-961-5400‌5

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)


	At or for the three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)	2024			2023			2023			2023			2023
Performance Ratios (1)
Return on average assets		0.17	%		0.38	%		0.37	%		0.41	%		0.19	%
Return on average equity		2.20			4.84			4.64			5.16			2.37
Yield on average interest-earning assets (2)		5.32			5.39			5.19			4.84			4.61
Cost of average interest-bearing liabilities		3.83			3.68			3.52			3.15			2.80
Cost of funds		3.42			3.26			3.13			2.80			2.47
Net interest rate spread during period (2)		1.49			1.71			1.67			1.69			1.81
Net interest margin (2)		2.06			2.29			2.22			2.18			2.27
Noninterest expense to average assets		1.83			1.90			1.71			1.66			1.85
Efficiency ratio (3)		86.07			76.69			76.76			73.82			79.52
Average interest-earning assets to average interest-bearing liabilities		1.17	X		1.19	X		1.18	X		1.18	X		1.19	X

Average Balances
Total loans, net	$	6,804,117		$	6,867,927		$	6,813,019		$	6,829,648		$	6,871,192
Total interest-earning assets		8,235,160			8,076,991			8,023,237			7,991,756			8,002,376
Total assets		8,707,505			8,569,002			8,505,346			8,462,442			8,468,317
Total deposits		7,081,498			6,884,037			6,819,397			6,899,617			6,810,485
Total interest-bearing liabilities		7,014,927			6,813,909			6,771,860			6,756,859			6,703,558
Stockholders' equity		669,185			669,819			675,041			672,835			683,058

Per Share Data
Book value per common share (4)	$	23.04		$	23.21		$	23.06		$	23.14		$	22.80
Tangible book value per common share (5)	$	22.39		$	22.54		$	22.39		$	22.47		$	22.14

Stockholders' Equity
Stockholders' equity	$	669,827		$	669,837		$	666,521		$	670,247		$	672,345
Tangible stockholders' equity		650,763			650,664			647,234			650,842			652,818

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	734,192		$	737,732		$	736,744		$	734,754		$	736,024
Common equity Tier 1 capital		687,458			691,754			690,294			688,820			689,732
Total risk-based capital		965,796			967,627			965,532			962,784			964,270
Risk Weighted Assets		6,664,496			6,750,301			6,804,478			6,650,222			6,660,145

Tier 1 leverage capital (well capitalized = 5%)		8.32	%		8.47	%		8.51	%		8.54	%		8.56	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.32			10.25			10.14			10.36			10.36
Tier 1 risk-based capital (well capitalized = 8.0%)		11.02			10.93			10.83			11.05			11.05
Total risk-based capital (well capitalized = 10.0%)		14.49			14.33			14.19			14.48			14.48

Capital Ratios
Average equity to average assets		7.69	%		7.82	%		7.94	%		7.95	%		8.07	%
Equity to total assets		7.61			7.85			7.77			7.91			7.93
Tangible common equity to tangible assets (6)		7.40			7.64			7.56			7.70			7.72

Asset Quality
Nonaccrual loans	$	24,829		$	23,709		$	17,405		$	18,637		$	21,176
Nonperforming loans		24,829			25,172			17,405			18,637			21,176
Nonperforming assets		46,254			46,153			38,386			39,618			42,157
Net charge-offs (recoveries)		4			60			(42)			1,560			9,234

Asset Quality Ratios
Nonperforming loans to gross loans		0.36	%		0.36	%		0.25	%		0.27	%		0.31	%
Nonperforming assets to total assets		0.53			0.54			0.45			0.47			0.50
Allowance for credit losses to gross loans		0.60			0.58			0.57			0.57			0.56
Allowance for credit losses to nonperforming assets		88.10			87.02			102.19			97.41			91.87
Allowance for credit losses to nonperforming loans		164.13			159.55			225.38			207.08			182.89
Net charge-offs (recoveries) to average loans		—			—			—			0.09			0.54

Full-service customer facilities		27			27			27			26			26

(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”.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands, except per share data)	2024		2023		2023		2023		2023
Interest and Dividend Income
Interest and fees on loans	$	92,959	$	95,616	$	91,466	$	85,377	$	82,889
Interest and dividends on securities:
Interest		12,541		10,803		10,383		9,172		7,240
Dividends		33		34		33		30		29
Other interest income		3,966		2,310		2,154		1,982		1,959
Total interest and dividend income		109,499		108,763		104,036		96,561		92,117

Interest Expense
Deposits		57,865		53,284		50,066		46,249		39,056
Other interest expense		9,237		9,394		9,543		6,934		7,799
Total interest expense		67,102		62,678		59,609		53,183		46,855

Net Interest Income		42,397		46,085		44,427		43,378		45,262
Provision for credit losses		592		998		596		1,416		7,508
Net Interest Income After Provision for Credit Losses		41,805		45,087		43,831		41,962		37,754

Noninterest Income
Banking services fee income		1,394		2,824		2,636		1,780		1,411
Net gain on sale of loans		110		—		—		54		54
Net gain (loss) from fair value adjustments		(834)		906		(1,246)		294		2,619
Federal Home Loan Bank of New York stock dividends		743		658		624		534		697
Life insurance proceeds		—		697		23		561		—
Bank owned life insurance		1,200		1,173		1,157		1,134		1,109
Other income		471		1,144		115		663		967
Total noninterest income		3,084		7,402		3,309		5,020		6,857

Noninterest Expense
Salaries and employee benefits		22,113		23,359		20,346		19,690		22,562
Occupancy and equipment		3,779		3,698		3,371		3,534		3,793
Professional services		2,792		2,523		2,494		2,291		2,261
FDIC deposit insurance		1,652		1,162		912		943		977
Data processing		1,727		1,646		1,422		1,473		1,435
Depreciation and amortization		1,457		1,491		1,482		1,482		1,510
Other real estate owned/foreclosure expense		145		105		185		150		165
Other operating expenses		6,227		6,751		6,176		5,547		6,453
Total noninterest expense		39,892		40,735		36,388		35,110		39,156

Income Before Provision for Income Taxes		4,997		11,754		10,752		11,872		5,455

Provision for income taxes		1,313		3,655		2,917		3,186		1,411

Net Income	$	3,684	$	8,099	$	7,835	$	8,686	$	4,044

Basic earnings per common share	$	0.12	$	0.27	$	0.26	$	0.29	$	0.13
Diluted earnings per common share	$	0.12	$	0.27	$	0.26	$	0.29	$	0.13
Dividends per common share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22

Basic average shares		29,742		29,650		29,703		30,090		30,265
Diluted average shares		29,742		29,650		29,703		30,090		30,265

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	March 31,		December 31,		September 30,		June 30,		March 31,
(Dollars in thousands)	2024		2023		2023		2023		2023
ASSETS
Cash and due from banks	$	210,723	$	172,157	$	200,926	$	160,053	$	176,747
Securities held-to-maturity:
Mortgage-backed securities		7,850		7,855		7,860		7,865		7,870
Other securities, net		64,612		65,068		65,271		65,469		65,653
Securities available for sale:
Mortgage-backed securities		509,527		354,344		337,879		365,911		380,110
Other securities		667,156		520,409		505,784		503,645		431,818
Loans		6,821,943		6,906,950		6,896,074		6,832,425		6,904,176
Allowance for credit losses		(40,752)		(40,161)		(39,228)		(38,593)		(38,729)
Net loans		6,781,191		6,866,789		6,856,846		6,793,832		6,865,447
Interest and dividends receivable		61,449		59,018		55,660		52,911		46,836
Bank premises and equipment, net		20,102		21,273		21,302		22,182		21,567
Federal Home Loan Bank of New York stock		24,845		31,066		43,821		36,168		38,779
Bank owned life insurance		214,718		213,518		214,321		213,164		214,240
Goodwill		17,636		17,636		17,636		17,636		17,636
Core deposit intangibles		1,428		1,537		1,651		1,769		1,891
Right of use asset		37,631		39,557		41,404		41,526		42,268
Other assets		188,457		167,009		209,014		192,721		168,872
Total assets	$	8,807,325	$	8,537,236	$	8,579,375	$	8,474,852	$	8,479,734

LIABILITIES
Total deposits	$	7,253,207	$	6,815,261	$	6,681,509	$	6,723,690	$	6,734,090
Borrowed funds		671,474		841,281		1,001,010		857,400		887,509
Operating lease liability		38,674		40,822		43,067		44,402		45,353
Other liabilities		174,143		170,035		187,268		179,113		140,437
Total liabilities		8,137,498		7,867,399		7,912,854		7,804,605		7,807,389

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		260,413		264,534		264,486		263,744		262,876
Treasury stock		(101,641)		(106,070)		(105,433)		(104,574)		(97,760)
Retained earnings		546,530		549,683		548,058		546,755		544,672
Accumulated other comprehensive loss, net of taxes		(35,816)		(38,651)		(40,931)		(36,019)		(37,784)
Total stockholders' equity		669,827		669,837		666,521		670,247		672,345

Total liabilities and stockholders' equity	$	8,807,325	$	8,537,236	$	8,579,375	$	8,474,852	$	8,479,734

(In thousands)
Issued shares		34,088		34,088		34,088		34,088		34,088
Outstanding shares		29,069		28,866		28,905		28,961		29,488
Treasury shares		5,019		5,222		5,183		5,127		4,600

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Unaudited)


	For the three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands)	2024		2023		2023		2023		2023
Interest-earning Assets:
Mortgage loans, net	$	5,353,606	$	5,356,112	$	5,314,215	$	5,308,567	$	5,333,274
Commercial Business loans, net		1,450,511		1,511,815		1,498,804		1,521,081		1,537,918
Total loans, net		6,804,117		6,867,927		6,813,019		6,829,648		6,871,192
Taxable securities:
Mortgage-backed securities		462,934		426,612		436,181		448,620		457,911
Other securities, net		590,204		527,316		528,091		471,600		411,723
Total taxable securities		1,053,138		953,928		964,272		920,220		869,634
Tax-exempt securities:
Other securities		65,939		66,242		66,438		66,632		66,828
Total tax-exempt securities		65,939		66,242		66,438		66,632		66,828
Interest-earning deposits and federal funds sold		311,966		188,894		179,508		175,256		194,722
Total interest-earning assets		8,235,160		8,076,991		8,023,237		7,991,756		8,002,376
Other assets		472,345		492,011		482,109		470,686		465,941
Total assets	$	8,707,505	$	8,569,002	$	8,505,346	$	8,462,442	$	8,468,317

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	106,212	$	110,316	$	115,437	$	124,041	$	134,945
NOW accounts		1,935,250		1,848,285		1,907,781		2,026,950		1,970,555
Money market accounts		1,725,714		1,625,453		1,584,308		1,754,574		2,058,523
Certificate of deposit accounts		2,406,283		2,340,115		2,290,669		2,046,960		1,679,517
Total due to depositors		6,173,459		5,924,169		5,898,195		5,952,525		5,843,540
Mortgagors' escrow accounts		73,822		86,592		69,525		97,410		70,483
Total interest-bearing deposits		6,247,281		6,010,761		5,967,720		6,049,935		5,914,023
Borrowings		767,646		803,148		804,140		706,924		789,535
Total interest-bearing liabilities		7,014,927		6,813,909		6,771,860		6,756,859		6,703,558
Noninterest-bearing demand deposits		834,217		873,276		851,677		849,682		896,462
Other liabilities		189,176		211,998		206,768		183,066		185,239
Total liabilities		8,038,320		7,899,183		7,830,305		7,789,607		7,785,259
Equity		669,185		669,819		675,041		672,835		683,058
Total liabilities and equity	$	8,707,505	$	8,569,002	$	8,505,346	$	8,462,442	$	8,468,317

Net interest-earning assets	$	1,220,233	$	1,263,082	$	1,251,377	$	1,234,897	$	1,298,818

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

NET INTEREST INCOME AND NET INTEREST MARGIN

(Unaudited)


	For the three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023
Interest Income:
Mortgage loans, net	$	71,572		$	72,505		$	68,931		$	63,688		$	62,054
Commercial Business loans, net		21,387			23,111			22,535			21,689			20,835
Total loans, net		92,959			95,616			91,466			85,377			82,889
Taxable securities:
Mortgage-backed securities		3,696			3,217			3,031			2,976			2,281
Other securities		8,504			7,239			7,003			5,847			4,611
Total taxable securities		12,200			10,456			10,034			8,823			6,892
Tax-exempt securities:
Other securities		474			482			484			480			477
Total tax-exempt securities		474			482			484			480			477
Interest-earning deposits and federal funds sold		3,966			2,310			2,154			1,982			1,959
Total interest-earning assets		109,599			108,864			104,138			96,662			92,217
Interest Expense:
Deposits:
Savings accounts	$	122		$	124		$	130		$	140		$	126
NOW accounts		18,491			17,411			16,843			16,152			13,785
Money market accounts		17,272			15,785			14,386			14,625			14,102
Certificate of deposit accounts		21,918			19,917			18,639			15,281			11,007
Total due to depositors		57,803			53,237			49,998			46,198			39,020
Mortgagors' escrow accounts		62			47			68			51			36
Total interest-bearing deposits		57,865			53,284			50,066			46,249			39,056
Borrowings		9,237			9,394			9,543			6,934			7,799
Total interest-bearing liabilities		67,102			62,678			59,609			53,183			46,855
Net interest income- tax equivalent	$	42,497		$	46,186		$	44,529		$	43,479		$	45,362
Included in net interest income above:
Prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap terminations fees	$	928		$	3,416		$	857		$	315		$	680
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income		(187)			(872)			1,348			(205)			100
Purchase accounting adjustments		271			461			347			340			306
Interest-earning Assets Yields:
Mortgage loans, net		5.35	%		5.41	%		5.19	%		4.80	%		4.65	%
Commercial Business loans, net		5.90			6.11			6.01			5.70			5.42
Total loans, net		5.46			5.57			5.37			5.00			4.83
Taxable securities:
Mortgage-backed securities		3.19			3.02			2.78			2.65			1.99
Other securities		5.76			5.49			5.30			4.96			4.48
Total taxable securities		4.63			4.38			4.16			3.84			3.17
Tax-exempt securities: (1)
Other securities		2.88			2.91			2.91			2.88			2.86
Total tax-exempt securities		2.88			2.91			2.91			2.88			2.86
Interest-earning deposits and federal funds sold		5.09			4.89			4.80			4.52			4.02
Total interest-earning assets (1)		5.32	%		5.39	%		5.19	%		4.84	%		4.61	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.46	%		0.45	%		0.45	%		0.45	%		0.37	%
NOW accounts		3.82			3.77			3.53			3.19			2.80
Money market accounts		4.00			3.88			3.63			3.33			2.74
Certificate of deposit accounts		3.64			3.40			3.25			2.99			2.62
Total due to depositors		3.75			3.59			3.39			3.10			2.67
Mortgagors' escrow accounts		0.34			0.22			0.39			0.21			0.20
Total interest-bearing deposits		3.70			3.55			3.36			3.06			2.64
Borrowings		4.81			4.68			4.75			3.92			3.95
Total interest-bearing liabilities		3.83	%		3.68	%		3.52	%		3.15	%		2.80	%

Net interest rate spread (tax equivalent) (1)		1.49	%		1.71	%		1.67	%		1.69	%		1.81	%
Net interest margin (tax equivalent) (1)		2.06	%		2.29	%		2.22	%		2.18	%		2.27	%
Ratio of interest-earning assets to interest-bearing liabilities		1.17	X		1.19	X		1.18	X		1.18	X		1.19	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, 718-961-5400‌10

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition


											1Q24 vs.		1Q24 vs.
	March 31,		December 31,		September 30,		June 30,		March 31,		4Q23		1Q23
(Dollars in thousands)	2024		2023		2023		2023		2023		% Change		% Change
Noninterest bearing	$	815,937	$	847,416	$	874,420	$	827,820	$	872,254	(3.7)	%	(6.5)	%
Interest bearing:
Certificate of deposit accounts		2,529,095		2,311,290		2,321,369		2,232,696		1,880,260	9.4		34.5
Savings accounts		105,147		108,605		112,730		118,886		128,245	(3.2)		(18.0)
Money market accounts		1,717,298		1,726,404		1,551,176		1,594,637		1,855,781	(0.5)		(7.5)
NOW accounts		2,003,649		1,771,164		1,749,802		1,891,834		1,918,977	13.1		4.4
Total interest-bearing deposits		6,355,189		5,917,463		5,735,077		5,838,053		5,783,263	7.4		9.9
Total due to depositors		7,171,126		6,764,879		6,609,497		6,665,873		6,655,517	6.0		7.7
Mortgagors' escrow deposits		82,081		50,382		72,012		57,817		78,573	62.9		4.5
Total deposits	$	7,253,207	$	6,815,261	$	6,681,509	$	6,723,690	$	6,734,090	6.4	%	7.7	%

Loan Composition


											1Q24 vs.		1Q24 vs.
	March 31,		December 31,		September 30,		June 30,		March 31,		4Q23		1Q23
(Dollars in thousands)	2024		2023		2023		2023		2023		% Change		% Change
Multifamily residential	$	2,622,737	$	2,658,205	$	2,614,219	$	2,593,955	$	2,601,174	(1.3)	%	0.8	%
Commercial real estate		1,925,312		1,958,252		1,953,243		1,917,749		1,904,293	(1.7)		1.1
One-to-four family ― mixed use property		516,198		530,243		537,744		542,368		549,207	(2.6)		(6.0)
One-to-four family ― residential		267,156		220,213		222,874		230,055		238,417	21.3		12.1
Construction		60,568		58,673		59,903		57,325		60,486	3.2		0.1
Mortgage loans		5,391,971		5,425,586		5,387,983		5,341,452		5,353,577	(0.6)		0.7

Small Business Administration		16,244		20,205		21,896		22,404		22,860	(19.6)		(28.9)
Commercial business and other		1,411,725		1,452,518		1,487,775		1,466,358		1,518,756	(2.8)		(7.0)
Commercial Business loans		1,427,969		1,472,723		1,509,671		1,488,762		1,541,616	(3.0)		(7.4)

Gross loans		6,819,940		6,898,309		6,897,654		6,830,214		6,895,193	(1.1)		(1.1)
Net unamortized (premiums) and unearned loan (cost) fees (1)		2,003		8,641		(1,580)		2,211		8,983	(76.8)		(77.7)
Allowance for credit losses		(40,752)		(40,161)		(39,228)		(38,593)		(38,729)	1.5		5.2
Net loans	$	6,781,191	$	6,866,789	$	6,856,846	$	6,793,832	$	6,865,447	(1.2)	%	(1.2)	%

(1)	Includes $3.6 million, $3.9 million, $4.4 million, $4.8 million, and $5.1 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings


	For the three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands)	2024		2023		2023		2023		2023
Multifamily residential	$	11,805	$	82,995	$	75,655	$	31,901	$	42,164
Commercial real estate		10,040		60,092		70,197		38,523		15,570
One-to-four family – mixed use property		750		3,319		6,028		5,812		4,938
One-to-four family – residential		52,539		1,454		1,070		63		4,296
Construction		1,895		8,007		6,971		8,811		10,592
Mortgage loans		77,029		155,867		159,921		85,110		77,560

Small Business Administration		—		1,162		—		820		318
Commercial business and other		52,955		87,255		81,549		72,850		95,668
Commercial Business loans		52,955		88,417		81,549		73,670		95,986

Total Closings	$	129,984	$	244,284	$	241,470	$	158,780	$	173,546

Weighted Average Rate on Loan Closings


	For the three months ended
	March 31,		December 31,		September 30,		June 30,		March 31,
Loan type	2024		2023		2023		2023		2023
Mortgage loans	6.46	%	7.55	%	7.22	%	6.62	%	6.30	%
Commercial Business loans	8.29		7.93		8.00		7.76		7.58
Total loans	7.20	%	7.69	%	7.48	%	7.14	%	7.01	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Credit Losses


	For the three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023
Allowance for credit losses - loans
Beginning balances	$	40,161		$	39,228		$	38,593		$	38,729		$	40,442

Net loan charge-off (recoveries):
Multifamily residential		—			(1)			—			—			(1)
Commercial real estate		—			—			—			8			—
One-to-four family – mixed-use property		—			(1)			—			—			—
One-to-four family – residential		13			9			(6)			4			(36)
Small Business Administration		(5)			(29)			(48)			(158)			(6)
Commercial business and other		(4)			82			12			1,706			9,277
Total net loan charge-offs (recoveries)		4			60			(42)			1,560			9,234

Provision (benefit) for loan losses		595			993			593			1,424			7,521

Ending balance	$	40,752		$	40,161		$	39,228		$	38,593		$	38,729

Gross charge-offs	$	58		$	107		$	21		$	1,731		$	9,298
Gross recoveries		54			47			63			171			64

Allowance for credit losses - loans to gross loans		0.60	%		0.58	%		0.57	%		0.57	%		0.56	%
Net loan charge-offs (recoveries) to average loans		—			—			—			0.09			0.54

Nonperforming Assets


	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023
Loans 90 Days or More Past Due and Still Accruing:
Multifamily residential	$	—		$	1,463		$	—		$	—		$	—
Total Loans 90 Days or more past due and still accruing		—			1,463			—			—			—

Nonaccrual Loans:
Multifamily residential		4,669			3,206			3,206			3,206			3,628
One-to-four family - mixed-use property		911			981			1,075			790			790
One-to-four family - residential		3,768			5,181			4,161			5,218			4,961
Small Business Administration		2,552			2,552			1,255			1,119			937
Commercial business and other		12,929			11,789			7,708			8,304			10,860
Total Nonaccrual loans		24,829			23,709			17,405			18,637			21,176

Total Nonperforming Loans (NPLs)		24,829			25,172			17,405			18,637			21,176

Other Nonperforming Assets:
Real estate acquired through foreclosure		665			—			—			—			—
Total Other nonperforming assets		665			—			—			—			—

Total Nonaccrual HTM Securities		20,760			20,981			20,981			20,981			20,981

Total Nonperforming Assets	$	46,254		$	46,153		$	38,386		$	39,618		$	42,157

Nonperforming Assets to Total Assets		0.53	%		0.54	%		0.45	%		0.47	%		0.50	%
Allowance for Credit Losses to NPLs		164.1	%		159.5	%		225.4	%		207.1	%		182.9	%

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

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, 718-961-5400‌14

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)


	For the three months ended
(Dollars in thousands,	March 31,			December 31,			September 30,			June 30,			March 31,
except per share data)	2024			2023			2023			2023			2023

GAAP income before income taxes	$	4,997		$	11,754		$	10,752		$	11,872		$	5,455

Net (gain) loss from fair value adjustments (Noninterest income (loss))		834			(906)			1,246			(294)			(2,619)
Life insurance proceeds (Noninterest income (loss))		—			(697)			(23)			(561)			—
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)		187			872			(1,348)			205			(100)
Net amortization of purchase accounting adjustments and intangibles (Various)		(169)			(355)			(237)			(227)			(188)
Miscellaneous expense (Professional services)		—			526			—			—			—

Core income before taxes		5,849			11,194			10,390			10,995			2,548

Provision for core income taxes		1,537			3,648			2,819			3,083			659

Core net income	$	4,312		$	7,546		$	7,571		$	7,912		$	1,889

GAAP diluted earnings per common share	$	0.12		$	0.27		$	0.26		$	0.29		$	0.13
Net (gain) loss from fair value adjustments, net of tax		0.02			(0.02)			0.03			(0.01)			(0.06)
Life insurance proceeds		—			(0.02)			—			(0.02)			—
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		—			0.02			(0.03)			—			—
Net amortization of purchase accounting adjustments, net of tax		—			(0.01)			(0.01)			(0.01)			(0.01)
Miscellaneous expense, net of tax		—			0.01			—			—			—

Core diluted earnings per common share(1)	$	0.14		$	0.25		$	0.25		$	0.26		$	0.06

Core net income, as calculated above	$	4,312		$	7,546		$	7,571		$	7,912		$	1,889
Average assets		8,707,505			8,569,002			8,505,346			8,462,442			8,468,317
Average equity		669,185			669,819			675,041			672,835			683,058
Core return on average assets(2)		0.20	%		0.35	%		0.36	%		0.37	%		0.09	%
Core return on average equity(2)		2.58	%		4.51	%		4.49	%		4.70	%		1.11	%

(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, 718-961-5400‌15

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE and PRE-PROVISION

PRE-TAX NET REVENUE

(Unaudited)


	For the three months ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023

GAAP Net interest income	$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Net (gain) loss from fair value adjustments on qualifying hedges		187			872			(1,348)			205			(100)
Net amortization of purchase accounting adjustments		(271)			(461)			(347)			(340)			(306)
Core Net interest income	$	42,313		$	46,496		$	42,732		$	43,243		$	44,856

GAAP Noninterest income	$	3,084		$	7,402		$	3,309		$	5,020		$	6,857
Net (gain) loss from fair value adjustments		834			(906)			1,246			(294)			(2,619)
Life insurance proceeds		—			(697)			(23)			(561)			—
Core Noninterest income	$	3,918		$	5,799		$	4,532		$	4,165		$	4,238

GAAP Noninterest expense	$	39,892		$	40,735		$	36,388		$	35,110		$	39,156
Net amortization of purchase accounting adjustments		(102)			(106)			(110)			(113)			(118)
Miscellaneous expense		—			(526)			—			—			—
Core Noninterest expense	$	39,790		$	40,103		$	36,278		$	34,997		$	39,038

Net interest income	$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Noninterest income		3,084			7,402			3,309			5,020			6,857
Noninterest expense		(39,892)			(40,735)			(36,388)			(35,110)			(39,156)
Pre-provision pre-tax net revenue	$	5,589		$	12,752		$	11,348		$	13,288		$	12,963

Core:
Net interest income	$	42,313		$	46,496		$	42,732		$	43,243		$	44,856
Noninterest income		3,918			5,799			4,532			4,165			4,238
Noninterest expense		(39,790)			(40,103)			(36,278)			(34,997)			(39,038)
Pre-provision pre-tax net revenue	$	6,441		$	12,192		$	10,986		$	12,411		$	10,056
Efficiency Ratio		86.1	%		76.7	%		76.8	%		73.8	%		79.5	%

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

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
	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023
GAAP net interest income	$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Net (gain) loss from fair value adjustments on qualifying hedges		187			872			(1,348)			205			(100)
Net amortization of purchase accounting adjustments		(271)			(461)			(347)			(340)			(306)
Tax equivalent adjustment		100			101			102			101			100
Core net interest income FTE	$	42,413		$	46,597		$	42,834		$	43,344		$	44,956
Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from nonaccrual loans		(928)			(3,416)			(857)			(315)			(680)
Net interest income FTE excluding episodic items	$	41,485		$	43,181		$	41,977		$	43,029		$	44,276

Total average interest-earning assets (1)	$	8,238,395		$	8,080,550		$	8,027,201		$	7,996,067		$	8,006,970
Core net interest margin FTE		2.06	%		2.31	%		2.13	%		2.17	%		2.25	%
Net interest margin FTE excluding episodic items		2.01	%		2.14	%		2.09	%		2.15	%		2.21	%

GAAP interest income on total loans, net	$	92,959		$	95,616		$	91,466		$	85,377		$	82,889
Net (gain) loss from fair value adjustments on qualifying hedges - loans		123			978			(1,379)			157			(101)
Net amortization of purchase accounting adjustments		(295)			(484)			(358)			(345)			(316)
Core interest income on total loans, net	$	92,787		$	96,110		$	89,729		$	85,189		$	82,472

Average total loans, net (1)	$	6,807,944		$	6,872,115		$	6,817,642		$	6,834,644		$	6,876,495
Core yield on total loans		5.45	%		5.59	%		5.26	%		4.99	%		4.80	%

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CALCULATION OF TANGIBLE STOCKHOLDERS’

COMMON EQUITY to TANGIBLE ASSETS

(Unaudited)


	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	2024			2023			2023			2023			2023
Total Equity	$	669,827		$	669,837		$	666,521		$	670,247		$	672,345
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit intangibles		(1,428)			(1,537)			(1,651)			(1,769)			(1,891)
Tangible Stockholders' Common Equity	$	650,763		$	650,664		$	647,234		$	650,842		$	652,818

Total Assets	$	8,807,325		$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit intangibles		(1,428)			(1,537)			(1,651)			(1,769)			(1,891)
Tangible Assets	$	8,788,261		$	8,518,063		$	8,560,088		$	8,455,447		$	8,460,207

Tangible Stockholders' Common Equity to Tangible Assets		7.40	%		7.64	%		7.56	%		7.70	%		7.72	%

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