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): January 25, 2024

	FLUSHING FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Charter)

DELAWARE		001-33013		11-3209278
(State of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

220 RXR Plaza, Uniondale, New York		11556
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code: (718) 961-5400

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 January 25, 2024, Flushing Financial Corporation (the “Company”) issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information appearing below under Item 4.02 is incorporated herein by reference.

Item 4.02.

Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

(a)

On January 25, 2024, management and the Audit Committee (the “Audit Committee”) of the Board of Directors of the Company determined that the Company’s consolidated financial statements and ratios for the three month period ended March 31, 2023, the three and six month periods ended June 30, 2023 and the three and nine month periods ended September 30, 2023, require restatement to correct the accounting treatment of employee retention credits (“ERCs”), which were incorrectly recognized as income during such periods. The change will impact net income by a decrease of $1.1 million for the period ended March 31, 2023, an increase of $0.1 million and a decrease of $1.1 million, respectively, for the three and six month periods ended June 30, 2023, and a decrease of $1.6 million and $2.6 million, respectively, for the three and nine month periods ended September 30, 2023. In the course of preparing the Company’s consolidated financial statements for the fiscal year ended December 31, 2023, the Company determined that, notwithstanding reliance on its independent tax credit advisors as described below, it is not able to treat the ultimate realization of the ERCs as “probable” under U.S. generally accepted accounting practices (“U.S. GAAP”), therefore, requiring the restatement of the Company’s previously issued consolidated financial statements for the referenced periods and amendments to the Company’s related previously filed quarterly reports on Form 10-Q.

Although the Company had engaged an independent national tax credit advisory firm that had advised the Company that it qualified for ERCs as previously reported, the Company has determined that it can no longer rely on such advice.

As a result of the foregoing, the Company’s management and the Audit Committee determined that the Company’s previously issued consolidated financial statements for the three month period ended March 31, 2023, the three and six month periods ended June 30, 2023, and the three and nine month periods ended September 30, 2023, as reported in its applicable Forms 10-Q, were filed on May 10, August 9, and November 7, 2023, respectively, should not be relied upon with respect to the matters described herein. The Company intends to file amendments to each such Form 10-Q to correct the accounting treatment of the ERCs and related impacts and disclosures.

The Audit Committee and management of the Company have discussed the matters disclosed in this current report on Form 8-K with the Company’s independent registered public accounting firm, BDO USA, P.C.

The following tables summarize the effects of the restatements on select consolidated financial statements and ratios as reported as of and for the periods stated and are unaudited:

Consolidated Statements of Financial Condition:

	As of March 31, 2023
(In thousands)	As Reported		Adjustments			As Restated

Other assets	$	168,259	$	613		$	168,872
Total assets		8,479,121		613			8,479,734
Other liabilities		138,710		1,727			140,437
Total liabilities		7,805,662		1,727			7,807,389
Retained earnings		545,786		(1,114	)		544,672
Total stockholders’ equity		673,459		(1,114	)		672,345
Total liabilities and stockholders’ equity		8,479,121		613			8,479,734

Consolidated Statements of Income:

	For the three months ended March 31, 2023
(In thousands, except per share data)	As Reported		Adjustments			As Restated

Other income	$	1,018	$	(51	)	$	967
Total non-interest income		6,908		(51	)		6,857
Salaries and employee benefits		20,887		1,675			22,562
Professional services		2,483		(222	)		2,261
Total non-interest expense		37,703		1,453			39,156
Income before income taxes		6,959		(1,504	)		5,455
Federal income tax		1,367		(296	)		1,071
State and local income tax		434		(94	)		340
Total provision for income tax		1,801		(390	)		1,411
Net income		5,158		(1,114	)		4,044
Basic earnings per common share		0.17		-0.04			0.13
Diluted earnings per common share		0.17		-0.04			0.13

Consolidated Statements of Comprehensive Income:

	For the three months ended March 31, 2023
(In thousands)	As Reported		Adjustments			As Restated

Net income	$	5,158	$	(1,114	)	$	4,044
Comprehensive net income		3,862		(1,114	)		2,748

Consolidated Statements of Cash Flows:

Operating Activities:	For the three months March 31, 2023
(In thousands)	As Reported			Adjustments			As Restated

Net income	$	5,158		$	(1,114	)	$	4,044
(Increase) decrease in other assets		(8,420	)		(613	)		(9,033	)
(Decrease) increase in other liabilities		(16,889	)		1,727			(15,162	)

Capital Ratios:

Holding Company

	At March 31, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	737,138		8.58	%	$	(1,114	)		-0.02	%	$	736,024		8.56	%
Common Equity Tier I risk-based capital		690,846		10.37	%		(1,114	)		-0.01	%		689,732		10.36	%
Tier I risk-based capital		737,138		11.07	%		(1,114	)		-0.02	%		736,024		11.05	%
Total risk-based capital		965,384		14.50	%		(1,114	)		-0.02	%		964,270		14.48	%

Capital Ratios:

Bank

	At March 31, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	906,437		10.55	%	$	(1,114	)		-0.02	%	$	905,323		10.53	%
Common Equity Tier I risk-based capital		906,437		13.61	%		(1,114	)		-0.02	%		905,323		13.59	%
Tier I risk-based capital		906,437		13.61	%		(1,114	)		-0.02	%		905,323		13.59	%
Total risk-based capital		944,683		14.18	%		(1,114	)		-0.02	%		943,569		14.16	%

Ratios:

	For the three months ended March 31, 2023
(Dollars in thousands)	As Reported			Adjustments			As Restated

Dividend Payout Ratio		129.4	%		39.8	%		169.2	%

ROAA		0.24	%		-0.05	%		0.19	%
ROAE		3.02	%		-0.65	%		2.37	%

Average Balances
Total Assets	$	8,468,311		$	6		$	8,468,317
Total Liabilities		7,785,240			19			7,785,259
Stockholders' Equity		683,071			(13	)		683,058

Consolidated Statements of Financial Condition:

	As of June 30, 2023
(In thousands)	As Reported		Adjustments			As Restated

Other assets	$	191,752	$	969		$	192,721
Total assets		8,473,883		969			8,474,852
Other liabilities		177,088		2,025			179,113
Total liabilities		7,802,580		2,025			7,804,605
Retained earnings		547,811		(1,056	)		546,755
Total stockholders’ equity		671,303		(1,056	)		670,247
Total liabilities and stockholders’ equity		8,473,883		969			8,474,852

Consolidated Statements of Income:

	For the three months ended June 30, 2023
(In thousands, except per share data)	As Reported		Adjustments			As Restated

Other income	$	765	$	(102	)	$	663
Total non-interest income		5,122		(102	)		5,020
Salaries and employee benefits		19,493		197			19,690
Professional services		2,657		(366	)		2,291
Total non-interest expense		35,279		(169	)		35,110
Income before income taxes		11,805		67			11,872
Federal income tax		2,194		24			2,218
State and local income tax		983		(15	)		968
Total provision for income tax		3,177		9			3,186
Net income		8,628		58			8,686
Basic earnings per common share		0.29		-			0.29
Diluted earnings per common share		0.29		-			0.29

Consolidated Statements of Comprehensive Income:

	For the three months ended June 30, 2023
(In thousands)	As Reported		Adjustments		As Restated

Net income	$	8,628	$	58	$	8,686
Comprehensive net income		10,393		58		10,451

Consolidated Statements of Income:

	For the six months ended June 30, 2023
(In thousands, except per share data)	As Reported		Adjustments			As Restated

Other income	$	1,783	$	(153	)	$	1,630
Total non-interest income		12,030		(153	)		11,877
Salaries and employee benefits		40,380		1,872			42,252
Professional services		5,140		(588	)		4,552
Total non-interest expense		72,982		1,284			74,266
Income before income taxes		18,764		(1,437	)		17,327
Federal income tax		3,561		(272	)		3,289
State and local income tax		1,417		(109	)		1,308
Total provision for income tax		4,978		(381	)		4,597
Net income		13,786		(1,056	)		12,730
Basic earnings per common share		0.46		-0.04			0.42
Diluted earnings per common share		0.46		-0.04			0.42

Consolidated Statements of Comprehensive Income:

	For the six months ended June 30, 2023
(In thousands)	As Reported		Adjustments			As Restated

Net income	$	13,786	$	(1,056	)	$	12,730
Comprehensive net income		14,255		(1,056	)		13,199

Consolidated Statements of Cash Flows:

Operating Activities:	For the six months ended June 30, 2023
(In thousands)	As Reported			Adjustments			As Restated

Net income	$	13,786		$	(1,056	)	$	12,730
(Increase) decrease in other assets		(15,971	)		(969	)		(16,940	)
(Decrease) increase in other liabilities		(10,730	)		2,025			(8,705	)

Capital Ratios:

Holding Company

	At June 30, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	735,810		8.56	%	$	(1,056	)		-0.02	%	$	734,754		8.54	%
Common Equity Tier I risk-based capital		689,876		10.38	%		(1,056	)		-0.02	%		688,820		10.36	%
Tier I risk-based capital		735,810		11.07	%		(1,056	)		-0.02	%		734,754		11.05	%
Total risk-based capital		963,840		14.50	%		(1,056	)		-0.02	%		962,784		14.48	%

Capital Ratios:

Bank

	At June 30, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	915,247		10.67	%	$	(1,056	)		-0.01	%	$	914,191		10.66	%
Common Equity Tier I risk-based capital		915,247		13.76	%		(1,056	)		-0.02	%		914,191		13.74	%
Tier I risk-based capital		915,247		13.76	%		(1,056	)		-0.02	%		914,191		13.74	%
Total risk-based capital		953,277		14.33	%		(1,056	)		-0.02	%		952,221		14.31	%

	For the three months ended June 30, 2023
(Dollars in thousands)	As Reported			Adjustments			As Restated

Dividend Payout Ratio		75.9	%		0.0	%		75.9	%

ROAA		0.41	%		0.00	%		0.41	%
ROAE		5.12	%		0.04	%		5.16	%

Average Balances
Total Assets	$	8,461,827		$	615		$	8,462,442
Total Liabilities		7,787,884			1,723			7,789,607
Stockholders' Equity		673,943			(1,108	)		672,835

	For the six months ended June 30, 2023
(Dollars in thousands)	As Reported			Adjustments			As Restated

Dividend Payout Ratio		95.7	%		9.1	%		104.8	%

ROAA		0.33	%		-0.03	%		0.30	%
ROAE		4.06	%		-0.30	%		3.76	%

Average Balances
Total Assets	$	8,465,051		$	312		$	8,465,363
Total Liabilities		7,786,570			875			7,787,445
Stockholders' Equity		678,481			(563	)		677,918

Consolidated Statements of Financial Condition:

	As of September 30, 2023
(In thousands)	As Reported		Adjustments			As Restated

Other assets	$	206,922	$	2,092		$	209,014
Total assets		8,577,283		2,092			8,579,375
Other liabilities		182,556		4,712			187,268
Total liabilities		7,908,142		4,712			7,912,854
Retained earnings		550,678		(2,620	)		548,058
Total stockholders’ equity		669,141		(2,620	)		666,521
Total liabilities and stockholders’ equity		8,577,283		2,092			8,579,375

Consolidated Statements of Income:

	For the three months ended September 30, 2023
(In thousands, except per share data)	As Reported		Adjustments			As Restated

Other income	$	282	$	(167	)	$	115
Total non-interest income		3,476		(167	)		3,309
Salaries and employee benefits		17,825		2,521			20,346
Professional services		3,042		(548	)		2,494
Total non-interest expense		34,415		1,973			36,388
Income before income taxes		12,892		(2,140	)		10,752
Federal income tax		2,435		(406	)		2,029
State and local income tax		1,058		(170	)		888
Total provision for income tax		3,493		(576	)		2,917
Net income		9,399		(1,564	)		7,835
Basic earnings per common share		0.32		-0.06			0.26
Diluted earnings per common share		0.32		-0.06			0.26

Consolidated Statements of Comprehensive Income:

	For the three months ended September 30, 2023
(In thousands)	As Reported		Adjustments			As Restated

Net income	$	9,399	$	(1,564	)	$	7,835
Comprehensive net income		4,487		(1,564	)		2,923

Consolidated Statements of Income:

	For the nine months ended September 30, 2023
(In thousands, except per share data)	As Reported		Adjustments			As Restated

Other income	$	2,065	$	(320	)	$	1,745
Total non-interest income		15,506		(320	)		15,186
Salaries and employee benefits		58,205		4,393			62,598
Professional services		8,182		(1,136	)		7,046
Total non-interest expense		107,397		3,257			110,654
Income before income taxes		31,656		(3,577	)		28,079
Federal income tax		5,996		(678	)		5,318
State and local income tax		2,475		(279	)		2,196
Total provision for income tax		8,471		(957	)		7,514
Net income		23,185		(2,620	)		20,565
Basic earnings per common share		0.77		-0.08			0.69
Diluted earnings per common share		0.77		-0.08			0.69

Consolidated Statements of Comprehensive Income:

	For the nine months ended September 30, 2023
(In thousands)	As Reported		Adjustments			As Restated

Net income	$	23,185	$	(2,620	)	$	20,565
Comprehensive net income		18,742		(2,620	)		16,122

Consolidated Statements of Cash Flows:

Operating Activities:	For the nine months ended September 30, 2023
(In thousands)	As Reported			Adjustments			As Restated

Net income	$	23,185		$	(2,620	)	$	20,565
(Increase) decrease in other assets		(16,619	)		(2,092	)		(18,711	)
(Decrease) Increase in other liabilities		(11,505	)		4,712			(6,793	)

Capital Ratios:

Holding Company

	At September 30, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	739,364		8.54	%	$	(2,620	)		-0.03	%	$	736,744		8.51	%
Common Equity Tier I risk-based capital		692,914		10.19	%		(2,620	)		-0.05	%		690,294		10.14	%
Tier I risk-based capital		739,364		10.87	%		(2,620	)		-0.04	%		736,744		10.83	%
Total risk-based capital		968,152		14.23	%		(2,620	)		-0.04	%		965,532		14.19	%

Capital Ratios:

Bank

	At September 30, 2023
(Dollars in thousands)	As Reported					Adjustments						As Restated
	Amount		Percent of Assets			Amount			Percent of Assets			Amount		Percent of Assets

Tier 1 (Leverage) capital	$	918,167		10.61	%	$	(2,620	)		-0.03	%	$	915,547		10.58	%
Common Equity Tier I risk-based capital		918,167		13.49	%		(2,620	)		-0.04	%		915,547		13.45	%
Tier I risk-based capital		918,167		13.49	%		(2,620	)		-0.04	%		915,547		13.45	%
Total risk-based capital		956,955		14.06	%		(2,620	)		-0.04	%		954,335		14.02	%

	For the three months ended September 30, 2023
(Dollars in thousands)	As Reported			Adjustments			As Restated

Dividend Payout Ratio		68.8	%		15.8	%		84.6	%

ROAA		0.44	%		-0.07	%		0.37	%
ROAE		5.57	%		-0.93	%		4.64	%

Average Balances
Total Assets	$	8,504,364		$	982		$	8,505,346
Total Liabilities		7,828,851			1,454			7,830,305
Stockholders' Equity		675,513			(472	)		675,041

	For the nine months ended September 30, 2023
(Dollars in thousands)	As Reported			Adjustments			As Restated

Dividend Payout Ratio		85.7	%		10.0	%		95.7	%

ROAA		0.36	%		-0.04	%		0.32	%
ROAE		4.56	%		-0.51	%		4.05	%

Average Balances
Total Assets	$	8,478,299		$	538		$	8,478,837
Total Liabilities		7,800,818			1,071			7,801,889
Stockholders' Equity		677,481			(533	)		676,948

Item 8.01.

Other Events.

In connection with its evaluation of the restatements described in Item 4.02 above, management of the Company has concluded that a material weakness in the Company’s internal control over financial reporting existed as of March 31, June 30, and September 30, 2023. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Specifically, the Company did not maintain effective controls over the probability assessment associated with the recognition of income related to the ERCs.

The Company’s management is taking steps to remediate the material weakness in its internal control over financial reporting relating to the probability assessment associated with the recognition of income related to ERCs. These steps will include the preparation of a technical accounting memorandum for any material unusual transactions including careful evaluation of any probability assessments or other areas of judgement involved, such as the ERCs, to determine the correct accounting treatment for such transactions. Management believes the additional control procedures designed, when implemented, will fully remediate the material weakness.

Item 9.01.

Financial Statements and Exhibits.

Exhibit 99.1

Press release dated January 25, 2024.

SIGNATURES

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.

Date: January 25, 2024	FLUSHING FINANCIAL CORPORATION


	By:	/s/ Susan K. Cullen

	Name:	Susan K. Cullen
	Title:	Chief Financial Officer

EX-99.1 2 ef20019692_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 2023 and 4Q23 GAAP EPS of $0.96 and $0.27, and Core EPS of $0.83 and $0.25, Respectively; Continues to Successfully Execute On Its Action Plan
“Flushing Financial delivered sequential GAAP and Core NIM expansion in 4Q23 of 7 and 18 basis points, respectively, as our team continued to successfully execute against the previously announced action plan amid this challenging environment. Importantly, during the quarter, total average deposits increased 3.1% YoY and 0.9% QoQ, while average noninterest bearing deposits increased $21.6 million, or 2.5% QoQ. Our loan portfolio remains resilient through the credit cycle with 89% secured by real estate, strong debt service coverage ratios, low average loan to values, and controllable repricing risk. Credit quality continues to be a strength for the Company with less than one basis point of net charge-offs in 4Q23 although there was a slight uptick in NPAs. Given our progress to date, we are expanding our areas of focus to include: 1) increasing NIM and reducing volatility; 2) maintaining credit discipline; 3) preserving strong liquidity and capital; and 4) bending the expense curve. Continuing to advance these priorities will enable us to navigate the current environment while positioning the Company for long-term profitable growth.” - John R. Buran, President and CEO
UNIONDALE, N.Y., January 25, 2024 (GLOBE NEWSWIRE) – GAAP and Core NIM Expand QoQ; Average Total Deposits Increase. The Company reported fourth quarter and full year 2023 GAAP EPS of $0.27 and $0.96, respectively. Core EPS for the fourth quarter and full year of 2023 totaled $0.25 and $0.83, respectively. 4Q23 GAAP NIM was 2.29% while Core NIM amounted to 2.31%. The actions undertaken in 2023 to reduce interest rate risk, including adding interest rate hedges and floating rate loans, assisted in reducing the NIM compression. Absent episodic items, the NIM was 2.14%, an increase of 5 basis points quarter over quarter. Average total deposits increased 3.1% YoY and 0.9% QoQ while importantly, noninterest bearing deposits increased $21.6 million, or 2.5% QoQ. Strong Credit Quality; Stable Capital. Nonperforming assets to total assets increased to 54 bps compared to 45 bps in 3Q23, while criticized and classified loans to loans was 1.11% in 4Q23, compared to 1.08% in 3Q23. Net charge-offs were only $60 thousand in 4Q23. Capital continues to be sound with TCE/TA1 of 7.64% at December 31, 2023, compared to 7.56% at September 30, 2023. The Company repurchased 38,815 shares at an average cost $15.08 (33% discount to tangible book value) during 4Q23.

Key Financial Metrics2


	4Q23	3Q23	2Q23	1Q23	4Q22	2023	2022
GAAP:
EPS	$0.27	$0.26	$0.29	$0.13	$0.34	$0.96	$2.50
ROAA (%)	0.38	0.37	0.41	0.19	0.48	0.34	0.93
ROAE (%)	4.84	4.64	5.16	2.37	6.06	4.25	11.44
NIM FTE3 (%)	2.29	2.22	2.18	2.27	2.70	2.24	3.11
Core:
EPS	$0.25	$0.25	$0.26	$0.06	$0.57	$0.83	$2.49
ROAA (%)	0.35	0.36	0.37	0.09	0.82	0.29	0.92
ROAE (%)	4.51	4.49	4.70	1.11	10.29	3.69	11.42
Core NIM FTE (%)	2.31	2.13	2.17	2.25	2.63	2.21	3.07
Credit Quality:
NPAs/Loans & OREO (%)	0.67	0.56	0.58	0.61	0.77	0.67	0.77
ACLs/Loans (%)	0.58	0.57	0.57	0.56	0.58	0.58	0.58
ACLs/NPLs (%)	159.55	225.38	207.08	182.89	124.89	159.55	124.89
NCOs/Avg Loans (%)	-	-	0.09	0.54	0.05	0.16	0.02
Balance Sheet:
Avg Loans ($B)	$6.9	$6.8	$6.8	$6.9	$6.9	$6.8	$6.7
Avg Dep ($B)	$6.9	$6.8	$6.9	$6.8	$6.7	$6.9	$6.5
Book Value/Share	$23.21	$23.06	$23.14	$22.80	$22.97	$23.21	$22.97
Tangible BV/Share	$22.54	$22.39	$22.47	$22.14	$22.31	$22.54	$22.31
TCE/TA (%)	7.64	7.56	7.70	7.72	7.82	7.64	7.82

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

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, 718-961-5400

4Q23 Highlights

•

Net interest margin FTE decreased 41 bps YoY, but increased 7 bps QoQ to 2.29%; Core net interest margin FTE decreased 32 bps YoY but improved 18 bps QoQ to 2.31%; Both GAAP and Core NIM benefited from prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap termination fees, which totaled $3.4 million or 17 bps in 4Q23

•

Average total deposits increased 3.1% YoY and 0.9% QoQ to $6.9 billion; Average noninterest bearing deposits increased $21.6 million QoQ, totaling 12.7% of average total deposits compared to 14.7% in 4Q22 and 12.5% in 3Q23. Average CDs were $2.3 billion, up 73.3% YoY and 2.2% QoQ

•

Period end net loans decreased 0.4% YoY, but increased 0.1% QoQ; Loan closings were $244.3 million up 8.5% YoY and 1.2% QoQ; The yields on closings increased 159 bps YoY and 21 bps QoQ to 7.69%; Back-to-back swap loan originations were $121.6 million compared to $120.5 million in 3Q23 and generated $1.5 million and $1.6 million of noninterest income, respectively; Loan pipeline decreased 35.3% YoY and 55.1% QoQ to $163.1 million; Approximately 29% of the loan pipeline consists of back-to-back swap loans

•

NPAs decreased to $46.2 million from $53.4 million a year ago but increased from $38.4 million in the prior quarter

•

As separately disclosed, we have not recognized and have restated for employee retention credits formerly recognized during periods of 2023, and have fully reserved for approximately $7.0 million ($0.17/share, after tax) of refunds

•

4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production

•

Provision for credit losses was $1.0 million in 4Q23 compared to negligible amount in 4Q22 and $0.6 million in 3Q23; Net charge-offs (recoveries) were $60,000 in 4Q23 compared to $0.8 million in 4Q22 and $(42,000) in 3Q23

•

Tangible Common Equity to Tangible Assets increased to 7.64% at 4Q23 compared to 7.56% at 3Q23; Repurchased 38,815 shares at an average price of $15.08 or a 33% discount to December 31, 2023, tangible book value of $22.54

Areas of Focus
Increase NIM and Reduce Volatility	•	GAAP and Core NIM improved 7 bps and 18 bps QoQ, respectively, in 4Q23
	•	NIM improved 5 bps QoQ to 2.14%, absent episodic items1
	•	Largely achieved the goal of becoming 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 increased 2.5% QoQ and accounted for 12.7% 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 54 bps of assets and criticized and classified loans are 1.11% of loans
	•	Manhattan office buildings exposure is minimal at 0.6% of net loans
Preserve Strong Liquidity and Capital	•	Maintaining ample liquidity with $4.1 billion of undrawn lines and resources
	•	Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 30% of total deposits
	•	Total average deposits increased 3.1% YoY and 0.9% QoQ
	•	Checking account openings declined 6.6% YoY in 4Q23, but were up 5.7% in 2023
	•	Tangible Common Equity to Tangible Assets improved to 7.64% QoQ
	•	Leverage ratio remains stable at 8.47%
Bend the Expense Curve	•	GAAP noninterest expense to average assets was 1.90% in 4Q23 compared to 1.58% in 4Q22 and 1.71% in 3Q23
	•	4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production
	•	1Q24 seasonal expenses are expected to be less than half of the $4.1 million recorded in 1Q23

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

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

Income Statement Highlights


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

Net Interest Income	$46,085	$44,427	$43,378	$45,262	$54,201	(15.0)	%	3.7	%
Provision (Benefit) for Credit Losses	998	596	1,416	7,508	(12)	(8,416.7)		67.4
Noninterest Income (Loss)	7,402	3,309	5,020	6,857	(7,652)	(196.7)		123.7
Noninterest Expense	40,735	36,388	35,110	39,156	33,742	20.7		11.9
Income Before Income Taxes	11,754	10,752	11,872	5,455	12,819	(8.3)		9.3
Provision for Income Taxes	3,655	2,917	3,186	1,411	2,570	42.2		25.3
Net Income	$8,099	$7,835	$8,686	$4,044	$10,249	(21.0)		3.4
Diluted EPS	$0.27	$0.26	$0.29	$0.13	$0.34	(20.6)		3.8
Avg. Diluted Shares (000s)	29,650	29,703	30,090	30,265	30,420	(2.5)		(0.2)

Core Net Income1	$7,546	$7,571	$7,912	$1,889	$17,399	(56.6)		(0.3)
Core EPS1	$0.25	$0.25	$0.26	$0.06	$0.57	(56.1)		-

1 See Reconciliation of GAAP Earnings and Core Earnings

Net interest income decreased YoY but increased QoQ.

•

Net Interest Margin FTE of 2.29% decreased 41 bps YoY, but increased 7 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 $3.0 million (15 bps to the NIM) compared to $2.6 million (13 bps to the NIM) in 3Q23, $0.5 million (3 bps) in 2Q23, $1.1 million (6 bps) in 1Q23, and $2.4 million (12 bps) in 4Q22

•

Excluding the items in the previous bullet, net interest margin was 2.14% in 4Q23, 2.09% in 3Q23, 2.15% in 2Q23, 2.21% in 1Q23, and 2.58% in 4Q22

The provision for credit losses increased YoY and QoQ.

•

Net charge-offs (recoveries) were $60,000 in 4Q23 (less than 1 bp of average loans) compared to $(42,000) in 3Q23 (less than (1) bp of average loans), $1.6 million in 2Q23 (9 bps of average loans), $9.2 million in 1Q23 (54 bps of average loans), and $0.8 million in 4Q22 (5 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) increased YoY and QoQ.

•

Back-to-back swap loan closings of $121.6 million in 4Q23 (compared to $120.5 million in 3Q23 and $11.5 million in 2Q23) contributed to the YoY growth in core noninterest income; the Company earns fee income on back-to-back swap loan closings

•

Net gains (losses) from fair value adjustments were $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), $2.6 million in 1Q23 ($0.06 per share, net of tax), and $(0.6) million in 4Q22 ($(0.02) 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), $0.6 million ($0.02 per share) in 2Q23, and $0.3 million ($0.01 per share) in 4Q22

•

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 approximating 6.40%

•

Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $5.8 million in 4Q23, up 64.4% YoY and 28.0% 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 YoY and QoQ.

•

4Q23 noninterest expense was impacted by increasing DDA balances and strong loan production

•

Seasonal compensation expense was $4.1 million in 1Q23; seasonal expenses are expected to be less than half in 1Q24

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

•

Excluding the effects of immaterial adjustments, core operating expenses were $40.1 million in 4Q23, up 19.3% YoY, and 10.5% QoQ

•

GAAP noninterest expense to average assets was 1.90% in 4Q23, 1.71% in 3Q23, 1.66% in 2Q23, 1.85% in 1Q23, and 1.58% in 4Q22

Provision for income taxes increased YoY and QoQ.

•

The effective tax rate was 31.1% in 4Q23, 27.1% in 3Q23, 26.8% in 2Q23, 25.9% in 1Q23, and 20.0% in 4Q22

•

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; the 4Q22 effective tax rate had preferential tax items that had a larger impact as a result of lower levels of pre-tax income

Balance Sheet, Credit Quality, and Capital Highlights

						YoY		QoQ
	4Q23	3Q23	2Q23	1Q23	4Q22	Change		Change
Averages ($MM)
Loans	$6,868	$6,813	$6,830	$6,871	$6,881	(0.2)	%	0.8	%
Total Deposits	6,884	6,819	6,900	6,810	6,678	3.1		1.0

Credit Quality ($000s)
Nonperforming Loans	$25,172	$17,405	$18,637	$21,176	$32,382	(22.3)	%	44.6	%
Nonperforming Assets	46,153	38,386	39,618	42,157	53,363	(13.5)		20.2
Criticized and Classified Loans	76,719	74,169	48,675	58,130	68,093	12.7		3.4
Criticized and Classified Assets	97,700	95,150	69,656	79,111	89,073	9.7		2.7
Allowance for Credit Losses/Loans (%)	0.58	0.57	0.57	0.56	0.58	-	bps	1	bp

Capital
Book Value/Share	$23.21	$23.06	$23.14	$22.80	$22.97	1.0	%	0.7	%
Tangible Book Value/Share	22.54	22.39	22.47	22.14	22.31	1.0		0.7
Tang. Common Equity/Tang. Assets (%)	7.64	7.56	7.70	7.72	7.82	(18)	bps	8	bps
Leverage Ratio (%)	8.47	8.51	8.54	8.56	8.61	(14)		(4)

Average loans decreased YoY but increased QoQ.

•

Period end net loans totaled $6.9 billion, down 0.4% YoY, but up 0.1% QoQ

•

Total loan closings were $244.3 million in 4Q23, $241.5 million in 3Q23, $158.8 million in 2Q23, $173.5 million in 1Q23, and $225.2 million in 4Q22; the loan pipeline was $163.1 million at December 31, 2023, down 35.3% YoY and 55.1% QoQ

•

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

•

Manhattan office buildings exposure is minimal at 0.6% of net loans

Average total deposits increased YoY and QoQ.

•

Average noninterest bearing deposits decreased 10.9% YoY, but increased 2.5% QoQ in 4Q23 and comprised 12.7% of average total deposits in 4Q23 compared to 14.7% a year ago

•

Average CDs totaled $2.3 billion, up 73.3% YoY and 2.2% QoQ; approximately $408.6 million of non-swapped CDs are due to mature at a rate of 3.20% in 1Q24

Credit Quality: Nonperforming loans declined YoY but increased QoQ.

•

Criticized and classified loans were 111 bps of gross loans at 4Q23 compared to 108 bps at 3Q23, 71 bps at 2Q23, 84 bps at 1Q23, and 98 bps at 4Q22

•

Allowance for credit losses were 159.5% of nonperforming loans at 4Q23 compared to 124.9% at 4Q22 and 225.4% at 3Q23

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased 1.0% YoY and 0.7% QoQ to $23.21 and $22.54, respectively.

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

•

The Company paid a dividend of $0.22 per share in 4Q23; repurchased 38,815 shares in 4Q23 at an average price of $15.08, representing a 33% discount to tangible book value; 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 7.64% at December 31, 2023, compared to 7.82% at December 31, 2022, and 7.56% at September 30, 2023

Conference Call Information and First Quarter Earnings Release Date

Conference Call Information:

•

John R. Buran, President and Chief Executive Officer, Tom Buonaiuto, Senior Executive Vice President, Chief of Staff, and Deposit Channel Executive, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Friday, January 26, 2024, at 11:00 AM (ET) to discuss the Company’s fourth quarter and full year 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=VQZ8mq4o

•

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

•

Replay Access Code: 6289639

•

The conference call will be simultaneously webcast and archived

First Quarter 2024 Earnings Release Date:

The Company plans to release First Quarter 2024 financial results after the market close on April 23, 2024; followed by a conference call at 9:30 AM (ET) on April 24, 2024.

A detailed announcement will be issued prior to the first 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, 718-961-5400

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the three months ended															At or for the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)	2023			2023			2023			2023			2022			2023			2022
Performance Ratios (1)
Return on average assets		0.38	%		0.37	%		0.41	%		0.19	%		0.48	%		0.34	%		0.93	%
Return on average equity		4.84			4.64			5.16			2.37			6.06			4.25			11.44
Yield on average interest-earning assets (2)		5.39			5.19			4.84			4.61			4.44			5.01			4.05
Cost of average interest-bearing liabilities		3.68			3.52			3.15			2.80			2.11			3.29			1.13
Cost of funds		3.26			3.13			2.80			2.47			1.84			2.91			0.98
Net interest rate spread during period (2)		1.71			1.67			1.69			1.81			2.33			1.72			2.92
Net interest margin (2)		2.29			2.22			2.18			2.27			2.70			2.24			3.11
Noninterest expense to average assets		1.90			1.71			1.66			1.85			1.58			1.78			1.73
Efficiency ratio (3)		76.69			76.76			73.82			79.52			59.55			76.72			56.46
Average interest-earning assets to average interest-bearing liabilities		1.19	X		1.18	X		1.18	X		1.19	X		1.21	X		1.19	X		1.22	X

Average Balances
Total loans, net	$	6,867,927		$	6,813,019		$	6,829,648		$	6,871,192		$	6,881,245		$	6,845,349		$	6,741,590
Total interest-earning assets		8,076,991			8,023,237			7,991,756			8,002,376			8,045,691			8,023,793			7,835,654
Total assets		8,569,002			8,505,346			8,462,442			8,468,317			8,518,019			8,501,564			8,307,137
Total deposits		6,884,037			6,819,397			6,899,617			6,810,485			6,678,383			6,853,494			6,451,746
Total interest-bearing liabilities		6,813,909			6,771,860			6,756,859			6,703,558			6,662,209			6,761,877			6,444,805
Stockholders' equity		669,819			675,041			672,835			683,058			676,165			675,151			672,742

Per Share Data
Book value per common share (4)	$	23.21		$	23.06		$	23.14		$	22.80		$	22.97		$	23.21		$	22.97
Tangible book value per common share (5)	$	22.54		$	22.39		$	22.47		$	22.14		$	22.31		$	22.54		$	22.31

Stockholders' Equity
Stockholders' equity	$	669,837		$	666,521		$	670,247		$	672,345		$	677,157		$	669,837		$	677,157
Tangible stockholders' equity		650,664			647,234			650,842			652,818			657,504			650,664			657,504

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	737,732		$	736,744		$	734,754		$	736,024		$	746,880		$	737,732		$	746,880
Common equity Tier 1 capital		691,754			690,294			688,820			689,732			698,258			691,754			698,258
Total risk-based capital		967,627			965,532			962,784			964,270			975,709			967,627			975,709
Risk Weighted Assets		6,750,301			6,804,478			6,650,222			6,660,145			6,640,542			6,750,301			6,640,542

Tier 1 leverage capital (well capitalized = 5%)		8.47	%		8.51	%		8.54	%		8.56	%		8.61	%		8.47	%		8.61	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.25			10.14			10.36			10.36			10.52			10.25			10.52
Tier 1 risk-based capital (well capitalized = 8.0%)		10.93			10.83			11.05			11.05			11.25			10.93			11.25
Total risk-based capital (well capitalized = 10.0%)		14.33			14.19			14.48			14.48			14.69			14.33			14.69

Capital Ratios
Average equity to average assets		7.82	%		7.94	%		7.95	%		8.07	%		7.94	%		7.94	%		8.10	%
Equity to total assets		7.85			7.77			7.91			7.93			8.04			7.85			8.04
Tangible common equity to tangible assets (6)		7.64			7.56			7.70			7.72			7.82			7.64			7.82

Asset Quality
Nonaccrual loans (7)	$	23,709		$	17,405		$	18,637		$	21,176		$	29,782		$	23,709		$	29,782
Nonperforming loans		25,172			17,405			18,637			21,176			32,382			25,172			32,382
Nonperforming assets		46,153			38,386			39,618			42,157			53,363			46,153			53,363
Net charge-offs (recoveries)		60			(42)			1,560			9,234			811			10,812			1,535

Asset Quality Ratios
Nonperforming loans to gross loans		0.36	%		0.25	%		0.27	%		0.31	%		0.47	%		0.36	%		0.47	%
Nonperforming assets to total assets		0.54			0.45			0.47			0.50			0.63			0.54			0.63
Allowance for credit losses to gross loans		0.58			0.57			0.57			0.56			0.58			0.58			0.58
Allowance for credit losses to nonperforming assets		87.02			102.19			97.41			91.87			75.79			87.02			75.79
Allowance for credit losses to nonperforming loans		159.55			225.38			207.08			182.89			124.89			159.55			124.89
Net charge-offs (recoveries) to average loans		—			—			0.09			0.54			0.05			0.16			0.02

Full-service customer facilities		27			27			26			26			25			27			25

(See footnotes on next page)

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

(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, 718-961-5400

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the three months ended												For the year ended
	December 31,		September 30,			June 30,		March 31,		December 31,			December 31,		December 31,
(In thousands, except per share data)	2023		2023			2023		2023		2022			2023		2022
Interest and Dividend Income
Interest and fees on loans	$	95,616	$	91,466		$	85,377	$	82,889	$	81,033		$	355,348	$	293,287
Interest and dividends on securities:
Interest		10,803		10,383			9,172		7,240		6,511			37,598		20,861
Dividends		34		33			30		29		24			126		60
Other interest income		2,310		2,154			1,982		1,959		1,702			8,405		2,418
Total interest and dividend income		108,763		104,036			96,561		92,117		89,270			401,477		316,626

Interest Expense
Deposits		53,284		50,066			46,249		39,056		27,226			188,655		47,285
Other interest expense		9,394		9,543			6,934		7,799		7,843			33,670		25,725
Total interest expense		62,678		59,609			53,183		46,855		35,069			222,325		73,010

Net Interest Income		46,085		44,427			43,378		45,262		54,201			179,152		243,616
Provision (benefit) for credit losses		998		596			1,416		7,508		(12	)		10,518		5,081
Net Interest Income After Provision (Benefit) for Credit Losses		45,087		43,831			41,962		37,754		54,213			168,634		238,535

Noninterest Income (Loss)
Banking services fee income		2,824		2,636			1,780		1,411		1,231			8,651		5,122
Net loss on sale of securities		—		—			—		—		(10,948	)		—		(10,948	)
Net gain on sale of loans		—		—			54		54		46			108		119
Net gain on disposition of assets		—		—			—		—		104			—		104
Net gain (loss) from fair value adjustments		906		(1,246	)		294		2,619		(622	)		2,573		5,728
Federal Home Loan Bank of New York stock dividends		658		624			534		697		658			2,513		2,000
Life insurance proceeds		697		23			561		—		286			1,281		1,822
Bank owned life insurance		1,173		1,157			1,134		1,109		1,126			4,573		4,487
Other income		1,144		115			663		967		467			2,889		1,575
Total noninterest income (loss)		7,402		3,309			5,020		6,857		(7,652	)		22,588		10,009

Noninterest Expense
Salaries and employee benefits		23,359		20,346			19,690		22,562		18,178			85,957		84,374
Occupancy and equipment		3,698		3,371			3,534		3,793		3,701			14,396		14,606
Professional services		2,523		2,494			2,291		2,261		2,130			9,569		9,207
FDIC deposit insurance		1,162		912			943		977		485			3,994		2,258
Data processing		1,646		1,422			1,473		1,435		1,421			5,976		5,595
Depreciation and amortization		1,491		1,482			1,482		1,510		1,535			5,965		5,930
Other real estate owned/foreclosure expense		105		185			150		165		35			605		294
Other operating expenses		6,751		6,176			5,547		6,453		6,257			24,927		21,428
Total noninterest expense		40,735		36,388			35,110		39,156		33,742			151,389		143,692

Income Before Provision for Income Taxes		11,754		10,752			11,872		5,455		12,819			39,833		104,852

Provision for Income Taxes		3,655		2,917			3,186		1,411		2,570			11,169		27,907

Net Income	$	8,099	$	7,835		$	8,686	$	4,044	$	10,249		$	28,664	$	76,945

Basic earnings per common share	$	0.27	$	0.26		$	0.29	$	0.13	$	0.34		$	0.96	$	2.50
Diluted earnings per common share	$	0.27	$	0.26		$	0.29	$	0.13	$	0.34		$	0.96	$	2.50
Dividends per common share	$	0.22	$	0.22		$	0.22	$	0.22	$	0.22		$	0.88	$	0.88

Basic average shares		29,650		29,703			30,090		30,265		30,420			29,925		30,823
Diluted average shares		29,650		29,703			30,090		30,265		30,420			29,925		30,823

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2023			2023			2023			2023			2022
ASSETS
Cash and due from banks	$	172,157		$	200,926		$	160,053		$	176,747		$	151,754
Securities held-to-maturity:
Mortgage-backed securities		7,855			7,860			7,865			7,870			7,875
Other securities, net		65,068			65,271			65,469			65,653			65,836
Securities available for sale:
Mortgage-backed securities		354,344			337,879			365,911			380,110			384,283
Other securities		520,409			505,784			503,645			431,818			351,074
Loans		6,906,950			6,896,074			6,832,425			6,904,176			6,934,769
Allowance for credit losses		(40,161	)		(39,228	)		(38,593	)		(38,729	)		(40,442	)
Net loans		6,866,789			6,856,846			6,793,832			6,865,447			6,894,327
Interest and dividends receivable		59,018			55,660			52,911			46,836			45,048
Bank premises and equipment, net		21,273			21,302			22,182			21,567			21,750
Federal Home Loan Bank of New York stock		31,066			43,821			36,168			38,779			45,842
Bank owned life insurance		213,518			214,321			213,164			214,240			213,131
Goodwill		17,636			17,636			17,636			17,636			17,636
Core deposit intangibles		1,537			1,651			1,769			1,891			2,017
Right of use asset		39,557			41,404			41,526			42,268			43,289
Other assets		167,009			209,014			192,721			168,872			179,084
Total assets	$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734		$	8,422,946

LIABILITIES
Total deposits	$	6,815,261		$	6,681,509		$	6,723,690		$	6,734,090		$	6,485,342
Borrowed funds		841,281			1,001,010			857,400			887,509			1,052,973
Operating lease liability		40,822			43,067			44,402			45,353			46,125
Other liabilities		170,035			187,268			179,113			140,437			161,349
Total liabilities		7,867,399			7,912,854			7,804,605			7,807,389			7,745,789

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		264,534			264,486			263,744			262,876			264,332
Treasury stock		(106,070	)		(105,433	)		(104,574	)		(97,760	)		(98,535	)
Retained earnings		549,683			548,058			546,755			544,672			547,507
Accumulated other comprehensive loss, net of taxes		(38,651	)		(40,931	)		(36,019	)		(37,784	)		(36,488	)
Total stockholders' equity		669,837			666,521			670,247			672,345			677,157

Total liabilities and stockholders' equity	$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734		$	8,422,946

(In thousands)
Issued shares		34,088			34,088			34,088			34,088			34,088
Outstanding shares		28,866			28,905			28,961			29,488			29,476
Treasury shares		5,222			5,183			5,127			4,600			4,612

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Unaudited)

	For the three months ended										For the year ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(In thousands)	2023		2023		2023		2023		2022		2023		2022
Interest-earning Assets:
Mortgage loans, net	$	5,356,112	$	5,314,215	$	5,308,567	$	5,333,274	$	5,338,612	$	5,328,067	$	5,253,104
Commercial Business loans, net		1,511,815		1,498,804		1,521,081		1,537,918		1,542,633		1,517,282		1,488,486
Total loans, net		6,867,927		6,813,019		6,829,648		6,871,192		6,881,245		6,845,349		6,741,590
Taxable securities:
Mortgage-backed securities		426,612		436,181		448,620		457,911		549,204		442,228		573,314
Other securities, net		527,316		528,091		471,600		411,723		371,897		485,118		324,112
Total taxable securities		953,928		964,272		920,220		869,634		921,101		927,346		897,426
Tax-exempt securities:
Other securities		66,242		66,438		66,632		66,828		67,022		66,533		64,822
Total tax-exempt securities		66,242		66,438		66,632		66,828		67,022		66,533		64,822
Interest-earning deposits and federal funds sold		188,894		179,508		175,256		194,722		176,323		184,565		131,816
Total interest-earning assets		8,076,991		8,023,237		7,991,756		8,002,376		8,045,691		8,023,793		7,835,654
Other assets		492,011		482,109		470,686		465,941		472,328		477,771		471,483
Total assets	$	8,569,002	$	8,505,346	$	8,462,442	$	8,468,317	$	8,518,019	$	8,501,564	$	8,307,137

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	110,316	$	115,437	$	124,041	$	134,945	$	146,598	$	121,102	$	153,605
NOW accounts		1,848,285		1,907,781		2,026,950		1,970,555		1,972,134		1,937,974		1,976,238
Money market accounts		1,625,453		1,584,308		1,754,574		2,058,523		2,146,649		1,754,059		2,191,768
Certificate of deposit accounts		2,340,115		2,290,669		2,046,960		1,679,517		1,350,683		2,091,677		1,031,024
Total due to depositors		5,924,169		5,898,195		5,952,525		5,843,540		5,616,064		5,904,812		5,352,635
Mortgagors' escrow accounts		86,592		69,525		97,410		70,483		82,483		81,015		80,021
Total interest-bearing deposits		6,010,761		5,967,720		6,049,935		5,914,023		5,698,547		5,985,827		5,432,656
Borrowings		803,148		804,140		706,924		789,535		963,662		776,050		1,012,149
Total interest-bearing liabilities		6,813,909		6,771,860		6,756,859		6,703,558		6,662,209		6,761,877		6,444,805
Noninterest-bearing demand deposits		873,276		851,677		849,682		896,462		979,836		867,667		1,019,090
Other liabilities		211,998		206,768		183,066		185,239		199,809		196,869		170,500
Total liabilities		7,899,183		7,830,305		7,789,607		7,785,259		7,841,854		7,826,413		7,634,395
Equity		669,819		675,041		672,835		683,058		676,165		675,151		672,742
Total liabilities and equity	$	8,569,002	$	8,505,346	$	8,462,442	$	8,468,317	$	8,518,019	$	8,501,564	$	8,307,137

Net interest-earning assets	$	1,263,082	$	1,251,377	$	1,234,897	$	1,298,818	$	1,383,482	$	1,261,916	$	1,390,849

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

NET INTEREST INCOME AND NET INTEREST MARGIN

(Unaudited)

	For the three months ended																	For the year ended
	December 31,				September 30,			June 30,				March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023				2023			2023				2023			2022			2023			2022
Interest Income:
Mortgage loans, net	$	72,505			$	68,931		$	63,688			$	62,054		$	60,946		$	267,178		$	228,065
Commercial Business loans, net		23,111				22,535			21,689				20,835			20,087			88,170			65,222
Total loans, net		95,616				91,466			85,377				82,889			81,033			355,348			293,287
Taxable securities:
Mortgage-backed securities		3,217				3,031			2,976				2,281			2,425			11,505			9,414
Other securities		7,239				7,003			5,847				4,611			3,723			24,700			9,771
Total taxable securities		10,456				10,034			8,823				6,892			6,148			36,205			19,185
Tax-exempt securities:
Other securities		482				484			480				477			489			1,923			2,197
Total tax-exempt securities		482				484			480				477			489			1,923			2,197
Interest-earning deposits and federal funds sold		2,310				2,154			1,982				1,959			1,702			8,405			2,418
Total interest-earning assets		108,864				104,138			96,662				92,217			89,372			401,881			317,087
Interest Expense:
Deposits:
Savings accounts	$	124			$	130		$	140			$	126		$	59		$	520		$	211
NOW accounts		17,411				16,843			16,152				13,785			9,515			64,191			15,353
Money market accounts		15,785				14,386			14,625				14,102			10,532			58,898			19,039
Certificate of deposit accounts		19,917				18,639			15,281				11,007			7,037			64,844			12,547
Total due to depositors		53,237				49,998			46,198				39,020			27,143			188,453			47,150
Mortgagors' escrow accounts		47				68			51				36			83			202			135
Total interest-bearing deposits		53,284				50,066			46,249				39,056			27,226			188,655			47,285
Borrowings		9,394				9,543			6,934				7,799			7,843			33,670			25,725
Total interest-bearing liabilities		62,678				59,609			53,183				46,855			35,069			222,325			73,010
Net interest income- tax equivalent	$	46,186			$	44,529		$	43,479			$	45,362		$	54,303		$	179,556		$	244,077
Included in net interest income above:
Prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap terminations fees	$	3,416			$	857		$	315			$	680		$	1,080		$	5,268		$	6,445
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income		(872	)			1,348			(205	)			100			936			371			775
Purchase accounting adjustments		461				347			340				306			342			1,454			2,542
Interest-earning Assets Yields:
Mortgage loans, net		5.41		%		5.19	%		4.80		%		4.65	%		4.57	%		5.01	%		4.34	%
Commercial Business loans, net		6.11				6.01			5.70				5.42			5.21			5.81			4.38
Total loans, net		5.57				5.37			5.00				4.83			4.71			5.19			4.35
Taxable securities:
Mortgage-backed securities		3.02				2.78			2.65				1.99			1.77			2.60			1.64
Other securities		5.49				5.30			4.96				4.48			4.00			5.09			3.01
Total taxable securities		4.38				4.16			3.84				3.17			2.67			3.90			2.14
Tax-exempt securities: (1)
Other securities		2.91				2.91			2.88				2.86			2.92			2.89			3.39
Total tax-exempt securities		2.91				2.91			2.88				2.86			2.92			2.89			3.39
Interest-earning deposits and federal funds sold		4.89				4.80			4.52				4.02			3.86			4.55			1.83
Total interest-earning assets (1)		5.39		%		5.19	%		4.84		%		4.61	%		4.44	%		5.01	%		4.05	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.45		%		0.45	%		0.45		%		0.37	%		0.16	%		0.43	%		0.14	%
NOW accounts		3.77				3.53			3.19				2.80			1.93			3.31			0.78
Money market accounts		3.88				3.63			3.33				2.74			1.96			3.36			0.87
Certificate of deposit accounts		3.40				3.25			2.99				2.62			2.08			3.10			1.22
Total due to depositors		3.59				3.39			3.10				2.67			1.93			3.19			0.88
Mortgagors' escrow accounts		0.22				0.39			0.21				0.20			0.40			0.25			0.17
Total interest-bearing deposits		3.55				3.36			3.06				2.64			1.91			3.15			0.87
Borrowings		4.68				4.75			3.92				3.95			3.26			4.34			2.54
Total interest-bearing liabilities		3.68		%		3.52	%		3.15		%		2.80	%		2.11	%		3.29	%		1.13	%

Net interest rate spread (tax equivalent) (1)		1.71		%		1.67	%		1.69		%		1.81	%		2.33	%		1.72	%		2.92	%
Net interest margin (tax equivalent) (1)		2.29		%		2.22	%		2.18		%		2.27	%		2.70	%		2.24	%		3.11	%
Ratio of interest-earning assets to interest-bearing liabilities		1.19		X		1.18	X		1.18		X		1.19	X		1.21	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, 718-961-5400

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition

											4Q23 vs.			4Q23 vs.
	December 31,		September 30,		June 30,		March 31,		December 31,		3Q23			4Q22
(Dollars in thousands)	2023		2023		2023		2023		2022		% Change			% Change
Noninterest bearing	$	847,416	$	874,420	$	827,820	$	872,254	$	921,238		(3.1	)%		(8.0	)%
Interest bearing:
Certificate of deposit accounts		2,311,290		2,321,369		2,232,696		1,880,260		1,526,338		(0.4	)		51.4
Savings accounts		108,605		112,730		118,886		128,245		143,641		(3.7	)		(24.4	)
Money market accounts		1,726,404		1,551,176		1,594,637		1,855,781		2,099,776		11.3			(17.8	)
NOW accounts		1,771,164		1,749,802		1,891,834		1,918,977		1,746,190		1.2			1.4
Total interest-bearing deposits		5,917,463		5,735,077		5,838,053		5,783,263		5,515,945		3.2			7.3
Total due to depositors		6,764,879		6,609,497		6,665,873		6,655,517		6,437,183		2.4			5.1
Mortgagors' escrow deposits		50,382		72,012		57,817		78,573		48,159		(30.0	)		4.6
Total deposits	$	6,815,261	$	6,681,509	$	6,723,690	$	6,734,090	$	6,485,342		2.0	%		5.1	%

Loan Composition

																4Q23 vs.			4Q23 vs.
	December 31,			September 30,			June 30,			March 31,			December 31,			3Q23			4Q22
(Dollars in thousands)	2023			2023			2023			2023			2022			% Change			% Change
Multifamily residential	$	2,658,205		$	2,614,219		$	2,593,955		$	2,601,174		$	2,601,384			1.7	%		2.2	%
Commercial real estate		1,958,252			1,953,243			1,917,749			1,904,293			1,913,040			0.3			2.4
One-to-four family ― mixed use property		530,243			537,744			542,368			549,207			554,314			(1.4	)		(4.3	)
One-to-four family ― residential		220,213			222,874			230,055			238,417			241,246			(1.2	)		(8.7	)
Construction		58,673			59,903			57,325			60,486			70,951			(2.1	)		(17.3	)
Mortgage loans		5,425,586			5,387,983			5,341,452			5,353,577			5,380,935			0.7			0.8

Small Business Administration		20,205			21,896			22,404			22,860			23,275			(7.7	)		(13.2	)
Commercial business and other		1,452,518			1,487,775			1,466,358			1,518,756			1,521,548			(2.4	)		(4.5	)
Commercial Business loans		1,472,723			1,509,671			1,488,762			1,541,616			1,544,823			(2.4	)		(4.7	)

Gross loans		6,898,309			6,897,654			6,830,214			6,895,193			6,925,758			—			(0.4	)
Net unamortized (premiums) and unearned loan (cost) fees (1)		8,641			(1,580	)		2,211			8,983			9,011			(646.9	)		(4.1	)
Allowance for credit losses		(40,161	)		(39,228	)		(38,593	)		(38,729	)		(40,442	)		2.4			(0.7	)
Net loans	$	6,866,789		$	6,856,846		$	6,793,832		$	6,865,447		$	6,894,327			0.1	%		(0.4	)%

(1)	Includes $3.9 million, $4.4 million, $4.8 million, $5.1 million, and $5.4 million, of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings

	For the three months ended										For the year ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(In thousands)	2023		2023		2023		2023		2022		2023		2022
Multifamily residential	$	82,995	$	75,655	$	31,901	$	42,164	$	65,347	$	232,715	$	474,409
Commercial real estate		60,092		70,197		38,523		15,570		20,750		184,382		308,455
One-to-four family – mixed use property		3,319		6,028		5,812		4,938		4,489		20,097		37,598
One-to-four family – residential		1,454		1,070		63		4,296		7,485		6,883		25,059
Construction		8,007		6,971		8,811		10,592		7,301		34,381		31,592
Mortgage loans		155,867		159,921		85,110		77,560		105,372		478,458		877,113

Small Business Administration		1,162		—		820		318		665		2,300		3,461
Commercial business and other		87,255		81,549		72,850		95,668		119,191		337,322		641,420
Commercial Business loans		88,417		81,549		73,670		95,986		119,856		339,622		644,881

Total Closings	$	244,284	$	241,470	$	158,780	$	173,546	$	225,228	$	818,080	$	1,521,994

Weighted Average Rate on Loan Closings

	For the three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Loan type	2023			2023			2023			2023			2022
Mortgage loans		7.55	%		7.22	%		6.62	%		6.30	%		5.59	%
Commercial Business loans		7.93			8.00			7.76			7.58			6.57
Total loans		7.69	%		7.48	%		7.14	%		7.01	%		6.10	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Credit Losses

	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2023			2023			2022			2023			2022
Allowance for credit losses - loans
Beginning balances	$	39,228		$	38,593		$	38,729		$	40,442		$	41,268		$	40,442		$	37,135

Net loan charge-off (recoveries):
Multifamily residential		(1	)		—			—			(1	)		132			(2	)		131
Commercial real estate		—			—			8			—			—			8			—
One-to-four family – mixed-use property		(1	)		—			—			—			—			(1	)		—
One-to-four family – residential		9			(6	)		4			(36	)		17			(29	)		15
Small Business Administration		(29	)		(48	)		(158	)		(6	)		(9	)		(241	)		1,007
Taxi medallion		—			—			—			—			—			—			(447	)
Commercial business and other		82			12			1,706			9,277			671			11,077			829
Total net loan charge-offs (recoveries)		60			(42	)		1,560			9,234			811			10,812			1,535

Provision (benefit) for loan losses		993			593			1,424			7,521			(15	)		10,531			4,842

Ending balance	$	40,161		$	39,228		$	38,593		$	38,729		$	40,442		$	40,161		$	40,442

Gross charge-offs	$	107		$	21		$	1,731		$	9,298		$	1,938		$	11,157		$	3,348
Gross recoveries		47			63			171			64			1,127			345			1,813

Allowance for credit losses - loans to gross loans		0.58	%		0.57	%		0.57	%		0.56	%		0.58	%		0.58	%		0.58	%
Net loan charge-offs (recoveries) to average loans		—			—			0.09			0.54			0.05			0.16			0.02

Nonperforming Assets

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2023			2023			2023			2023			2022
Loans 90 Days or More Past Due and Still Accruing:
Multifamily residential	$	1,463		$	—		$	—		$	—		$	—
Construction		—			—			—			—			2,600
Total Loans 90 Days or more past due and still accruing		1,463			—			—			—			2,600

Nonaccrual Loans:
Multifamily residential		3,206			3,206			3,206			3,628			3,206
Commercial real estate		—			—			—			—			237
One-to-four family - mixed-use property(1)		981			1,075			790			790			790
One-to-four family - residential		5,181			4,161			5,218			4,961			4,425
Small Business Administration		2,552			1,255			1,119			937			937
Commercial business and other(1)		11,789			7,708			8,304			10,860			20,187
Total Nonaccrual loans		23,709			17,405			18,637			21,176			29,782

Total Nonperforming Loans (NPLs)		25,172			17,405			18,637			21,176			32,382

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

Total Nonperforming Assets	$	46,153		$	38,386		$	39,618		$	42,157		$	53,363

Nonperforming Assets to Total Assets		0.54	%		0.45	%		0.47	%		0.50	%		0.63	%
Allowance for Credit Losses to NPLs		159.5	%		225.4	%		207.1	%		182.9	%		124.9	%

(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; nonaccrual performing TDR commercial business loans totaling less than $0.1 million in 4Q22.

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

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, 718-961-5400

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)

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

GAAP income before income taxes	$	11,754		$	10,752		$	11,872		$	5,455		$	12,819		$	39,833		$	104,852

Net (gain) loss from fair value adjustments (Noninterest income (loss))		(906	)		1,246			(294	)		(2,619	)		622			(2,573	)		(5,728	)
Net loss on sale of securities (Noninterest income (loss))		—			—			—			—			10,948			—			10,948
Life insurance proceeds (Noninterest income (loss))		(697	)		(23	)		(561	)		—			(286	)		(1,281	)		(1,822	)
Net gain on disposition of assets (Noninterest income (loss))		—			—			—			—			(104	)		—			(104	)
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)		872			(1,348	)		205			(100	)		(936	)		(371	)		(775	)
Net amortization of purchase accounting adjustments and intangibles (Various)		(355	)		(237	)		(227	)		(188	)		(219	)		(1,007	)		(2,030	)
Miscellaneous expense (Professional services)		526			—			—			—			—			526			—

Core income before taxes		11,194			10,390			10,995			2,548			22,844			35,127			105,341

Provision for core income taxes		3,648			2,819			3,083			659			5,445			10,209			28,502

Core net income	$	7,546		$	7,571		$	7,912		$	1,889		$	17,399		$	24,918		$	76,839

GAAP diluted earnings per common share	$	0.27		$	0.26		$	0.29		$	0.13		$	0.34		$	0.96		$	2.50
Net (gain) loss from fair value adjustments, net of tax		(0.02	)		0.03			(0.01	)		(0.06	)		0.02			(0.06	)		(0.14	)
Net loss on sale of securities, net of tax		—			—			—			—			0.27			—			0.26
Life insurance proceeds		(0.02	)		—			(0.02	)		—			(0.01	)		(0.04	)		(0.06	)
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		0.02			(0.03	)		—			—			(0.02	)		(0.01	)		(0.02	)
Net amortization of purchase accounting adjustments, net of tax		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.02	)		(0.05	)
Miscellaneous expense, net of tax		0.01			—			—			—			—			0.01			—

Core diluted earnings per common share(1)	$	0.25		$	0.25		$	0.26		$	0.06		$	0.57		$	0.83		$	2.49

Core net income, as calculated above	$	7,546		$	7,571		$	7,912		$	1,889		$	17,399		$	24,918		$	76,839
Average assets		8,569,002			8,505,346			8,462,442			8,468,317			8,518,019			8,501,564			8,307,137
Average equity		669,819			675,041			672,835			683,058			676,165			675,151			672,742
Core return on average assets(2)		0.35	%		0.36	%		0.37	%		0.09	%		0.82	%		0.29	%		0.92	%
Core return on average equity(2)		4.51	%		4.49	%		4.70	%		1.11	%		10.29	%		3.69	%		11.42	%

(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, 718-961-5400

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE and PRE-PROVISION

PRE-TAX NET REVENUE

(Unaudited)

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

GAAP Net interest income	$	46,085		$	44,427		$	43,378		$	45,262		$	54,201		$	179,152		$	243,616
Net (gain) loss from fair value adjustments on qualifying hedges		872			(1,348	)		205			(100	)		(936	)		(371	)		(775	)
Net amortization of purchase accounting adjustments		(461	)		(347	)		(340	)		(306	)		(342	)		(1,454	)		(2,542	)
Core Net interest income	$	46,496		$	42,732		$	43,243		$	44,856		$	52,923		$	177,327		$	240,299

GAAP Noninterest income (loss)	$	7,402		$	3,309		$	5,020		$	6,857		$	(7,652	)	$	22,588		$	10,009
Net (gain) loss from fair value adjustments		(906	)		1,246			(294	)		(2,619	)		622			(2,573	)		(5,728	)
Net loss on sale of securities		—			—			—			—			10,948			—			10,948
Life insurance proceeds		(697	)		(23	)		(561	)		—			(286	)		(1,281	)		(1,822	)
Net gain on sale of assets		—			—			—			—			(104	)		—			(104	)
Core Noninterest income	$	5,799		$	4,532		$	4,165		$	4,238		$	3,528		$	18,734		$	13,303

GAAP Noninterest expense	$	40,735		$	36,388		$	35,110		$	39,156		$	33,742		$	151,389		$	143,692
Net amortization of purchase accounting adjustments		(106	)		(110	)		(113	)		(118	)		(123	)		(447	)		(512	)
Miscellaneous expense		(526	)		—			—			—			—			(526	)		—
Core Noninterest expense	$	40,103		$	36,278		$	34,997		$	39,038		$	33,619		$	150,416		$	143,180

Net interest income	$	46,085		$	44,427		$	43,378		$	45,262		$	54,201		$	179,152		$	243,616
Noninterest income (loss)		7,402			3,309			5,020			6,857			(7,652	)		22,588			10,009
Noninterest expense		(40,735	)		(36,388	)		(35,110	)		(39,156	)		(33,742	)		(151,389	)		(143,692	)
Pre-provision pre-tax net revenue	$	12,752		$	11,348		$	13,288		$	12,963		$	12,807		$	50,351		$	109,933

Core:
Net interest income	$	46,496		$	42,732		$	43,243		$	44,856		$	52,923		$	177,327		$	240,299
Noninterest income		5,799			4,532			4,165			4,238			3,528			18,734			13,303
Noninterest expense		(40,103	)		(36,278	)		(34,997	)		(39,038	)		(33,619	)		(150,416	)		(143,180	)
Pre-provision pre-tax net revenue	$	12,192		$	10,986		$	12,411		$	10,056		$	22,832		$	45,645		$	110,422
Efficiency Ratio		76.7	%		76.8	%		73.8	%		79.5	%		59.6	%		76.7	%		56.5	%

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

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 year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2023			2023			2022			2023			2022
GAAP net interest income	$	46,085		$	44,427		$	43,378		$	45,262		$	54,201		$	179,152		$	243,616
Net (gain) loss from fair value adjustments on qualifying hedges		872			(1,348	)		205			(100	)		(936	)		(371	)		(775	)
Net amortization of purchase accounting adjustments		(461	)		(347	)		(340	)		(306	)		(342	)		(1,454	)		(2,542	)
Tax equivalent adjustment		101			102			101			100			102			404			461
Core net interest income FTE	$	46,597		$	42,834		$	43,344		$	44,956		$	53,025		$	177,731		$	240,760

Total average interest-earning assets (1)	$	8,080,550		$	8,027,201		$	7,996,067		$	8,006,970		$	8,050,601		$	8,027,898		$	7,841,407
Core net interest margin FTE		2.31	%		2.13	%		2.17	%		2.25	%		2.63	%		2.21	%		3.07	%

GAAP interest income on total loans, net	$	95,616		$	91,466		$	85,377		$	82,889		$	81,033		$	355,348		$	293,287
Net (gain) loss from fair value adjustments on qualifying hedges - loans		978			(1,379	)		157			(101	)		(936	)		(345	)		(775	)
Net amortization of purchase accounting adjustments		(484	)		(358	)		(345	)		(316	)		(372	)		(1,503	)		(2,628	)
Core interest income on total loans, net	$	96,110		$	89,729		$	85,189		$	82,472		$	79,725		$	353,500		$	289,884

Average total loans, net (1)	$	6,872,115		$	6,817,642		$	6,834,644		$	6,876,495		$	6,886,900		$	6,850,124		$	6,748,165
Core yield on total loans		5.59	%		5.26	%		4.99	%		4.80	%		4.63	%		5.16	%		4.30	%

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CALCULATION OF TANGIBLE STOCKHOLDERS’

COMMON EQUITY to TANGIBLE ASSETS

(Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2023			2023			2023			2023			2022
Total Equity	$	669,837		$	666,521		$	670,247		$	672,345		$	677,157
Less:
Goodwill		(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles		(1,537	)		(1,651	)		(1,769	)		(1,891	)		(2,017	)
Tangible Stockholders' Common Equity	$	650,664		$	647,234		$	650,842		$	652,818		$	657,504

Total Assets	$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734		$	8,422,946
Less:
Goodwill		(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles		(1,537	)		(1,651	)		(1,769	)		(1,891	)		(2,017	)
Tangible Assets	$	8,518,063		$	8,560,088		$	8,455,447		$	8,460,207		$	8,403,293

Tangible Stockholders' Common Equity to Tangible Assets		7.64	%		7.56	%		7.70	%		7.72	%		7.82	%

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