8-K

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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 25, 2023

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

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

220 RXR Plaza , Uniondale , NY **** 11556

(Address of principal executive offices)

( 718 ) 961-5400

(Registrant's telephone number, including area code)

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

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

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

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

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

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

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

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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. ☐

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Item 2.02. Results of Operations and Financial Condition.

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

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1 Press release dated April 25, 2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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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
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Date: April 25, 2023	By:	/s/ SUSAN K. CULLEN
​	​	Susan K. Cullen
​	​	Senior Executive Vice President and Chief Financial Officer
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Flushing Financial 1Q23 Earnings Release

Exhibit 99.1

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Flushing Financial Corporation Reports 1Q23 GAAP EPS of 0.17 and Core EPS of 0.10;Deposits Increase Sequentially and Year-Over-Year; Liquidity Remains Strong Outlines Action Plan to Enhance Business Model Resilience and Drive Profitability in Current Environment
“The inverted yield curve and the rising rate environment led to first quarter results below our expectations. To better adapt to the changing environment, we are accelerating the following actions to enhance the resilience of our business model and strengthen performance: 1) move more towards being interest rate neutral in the shorter term; 2) increase our focus on risk adjusted returns and profitability; 3) emphasize our brand of customer service and deep relationships to continue to expand the client base and enhance loyalty; 4) further tighten expense controls; 5) review new and existing lending relationships to prepare for the next credit cycle; and 6) preserve our strong liquidity and capital. We continue to experience solid deposit growth, which reflects our deep client relationships and ties to our communities. Further, our strong liquidity is expected to allow us to continue our long track record of dividend payments. While the environment has clearly become more challenging, we are confident that our decisive actions we are taking now will result in improved profitability in the future and set the stage for consistent and significantly higher returns.”  - John R. Buran, President and CEO
UNIONDALE, N.Y., April 25, 2023 (GLOBE NEWSWIRE) - Strong Credit Quality Despite Loss on One Singular Relationship. Results for the quarter were impacted by our decision to fully charge off a 9.2 million business credit placed on non-accrual in 2Q22. This credit was a participation where the domestic borrower had a significant customer who shipped its product internationally and was impacted by world events. Existing credit protection became more questionable during the quarter which led to the decision to charge-off. Consistent with our long-standing history of conservative underwriting, the remainder of the credit portfolio continued to perform well as delinquencies improved 16 basis points and criticized and classified assets declined QoQ. NIM Outlook; Solid Capital and Liquidity. While rising rates temporarily compress our net interest margin, the NIM should begin to rebound, on a lagged basis, after the Fed stops raising rates. To limit additional margin squeeze, we moved closer to interest rate neutral, achieving approximately 40% of our target for 2023 in the first quarter. Capital continues to be strong with a TCE1 of 7.73%. Liquidity is solid with 3.7 billion of availability while uninsured and uncollateralized deposits are a low 1.1 billion or 16.2% of total deposits.

All values are in US Dollars.

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^1^ See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP<br> Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”
Key Financial Metrics^2^

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​	​	1Q23	​	​	4Q22	​	3Q22	​	2Q22	​	1Q22
GAAP:	​	​	​	​	​	​	​	​	​	​	​
EPS	​	$0.17	​	​	$0.34	​	$0.76	​	$0.81	​	$0.58
ROAA (%)	​	0.24	​	​	0.48	​	1.11	​	1.22	​	0.91
ROAE (%)	​	3.02	​	​	6.06	​	13.91	​	15.00	​	10.83
NIM FTE^3^ (%)	​	2.27	​	​	2.70	​	3.07	​	3.35	​	3.36
Core:	​	​	​	​	​	​	​	​	​	​	​
EPS	​	$0.10	​	​	$0.57	​	$0.62	​	$0.70	​	$0.61
ROAA (%)	​	0.14	​	​	0.82	​	0.90	​	1.05	​	0.94
ROAE (%)	​	1.76	​	​	10.29	​	11.24	​	12.90	​	11.27
Core NIM FTE (%)	​	2.25	​	​	2.63	​	3.03	​	3.33	​	3.31
Credit Quality:	​	​	​	​	​	​	​	​	​	​	​
NPAs/Loans & OREO (%)	​	0.61	​	​	0.77	​	0.72	​	0.72	​	0.21
ACLs/Loans (%)	​	0.56	​	​	0.58	​	0.59	​	0.58	​	0.57
ACLs/NPLs (%)	​	182.89	​	​	124.89	​	142.29	​	141.06	​	266.12
NCOs/Avg Loans (%)	​	0.54	​	​	0.05	​	0.02	​	(0.03)	​	0.06
Balance Sheet:	​	​	​	​	​	​	​	​	​	​	​
Avg Loans ($B)	​	$6.9	​	​	$6.9	​	$6.9	​	$6.6	​	$6.6
Avg Dep ($B)	​	$6.8	​	​	$6.7	​	$6.3	​	$6.4	​	$6.4
Book Value/Share	​	$22.84	​	​	$22.97	​	$22.47	​	$22.38	​	$22.26
Tangible BV/Share	​	$22.18	​	​	$22.31	​	$21.81	​	$21.71	​	$21.61
TCE/TA (%)	​	7.73	​	​	7.82	​	7.62	​	7.82	​	8.05
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^1^ Tangible Common Equity (“TCE”)/Total Assets (“TA”) ^2^ See “Reconciliation of GAAP Earnings and Core Earnings”, “Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue”, and “Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin.” ^3^ Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”) Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌1

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1Q23 Highlights
●Average total deposits increased 2.0% QoQ and 6.2% YoY to 6.8 billion, with core deposits comprising 75.3% of total average deposits; opened new Hauppauge branch during the quarter ●Period end net loans declined slightly QoQ and increased 4.5% YoY; loan closings were 173.5 million down 22.9% QoQ and 47.3% YoY; the yield on closings increased 91 bps QoQ and 357 bps YoY to 7.01%●Loan pipeline decreased 59.9% YoY, but increased 5.5% QoQ to 266.1 million reflecting higher rates and greater client selectivity●Net interest margin FTE decreased 43 bps QoQ and 109 bps YoY to 2.27%; Core net interest margin FTE decreased 38 bps QoQ and 106 bps YoY to 2.25%; The decline in GAAP and Core NIM was primarily driven by our liability sensitive balance sheet resulting in liabilities repricing faster than assets; after a lag, the NIM is expected to expand when the Fed stops raising rates ●Achieved 40% of our goal of moving towards interest rate neutral in 1Q23. These actions include adding 200 million hedge on investments, 50 million (net) of funding swaps, increasing floating rate securities, and extending funding ●NPAs declined to 42.2 million from 53.4 million at 4Q22, but increased from 14.1 million at 1Q22 ●Provision for credit losses was 7.5 million in 1Q23 compared to 1.4 million in 1Q22; net charge-offs were 9.2 million in 1Q23 compared to 0.9 million in 1Q22 ●Tangible Common Equity to Tangible Assets was 7.73%, down from 7.82% at 4Q22; the change in accumulated other comprehensive loss, net of taxes negatively impacted this ratio by 2 bps in 1Q23; our swaps portfolio serves as a partial offset to the value of the AFS securities portfolio when rates change ●Repurchased 159,516 shares at an average price of 19.14
Areas of Focus
Credit Quality
InterestRateRisk
Liquidity
Customer Experience

All values are in US Dollars.

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

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^1^ See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP<br> Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”
Income Statement Highlights		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
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​	​	​	​	​	​	​	​	​	​	​	​	​	​	YoY		​	QoQ
($000s, except EPS)	​	​	1Q23	​	​	4Q22	​	3Q22	​	2Q22	​	1Q22	​	Change		​	Change
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Net Interest Income	​	​	$45,262	​	​	$54,201	​	$61,206	​	$64,730	​	$63,479	​	(28.7)	%	​	(16.5)	%
Provision (Benefit) for Credit Losses	​	​	7,508	​	​	(12)	​	2,145	​	1,590	​	1,358	​	452.9	​	​	NM	​
Noninterest Income (Loss)	​	​	6,908	​	​	(7,652)	​	8,995	​	7,353	​	1,313	​	NM	​	​	(190.3)	​
Noninterest Expense	​	​	37,703	​	​	33,742	​	35,634	​	35,522	​	38,794	​	(2.8)	​	​	11.7	​
Income Before Income Taxes	​	​	6,959	​	​	12,819	​	32,422	​	34,971	​	24,640	​	(71.8)	​	​	(45.7)	​
Provision for Income Taxes	​	​	1,801	​	​	2,570	​	8,980	​	9,936	​	6,421	​	(72.0)	​	​	(29.9)	​
Net Income	​	​	$5,158	​	​	$10,249	​	$23,442	​	$25,035	​	$18,219	​	(71.7)	​	​	(49.7)	​
Diluted EPS	​	​	$0.17	​	​	$0.34	​	$0.76	​	$0.81	​	$0.58	​	(70.7)	​	​	(50.0)	​
Avg. Diluted Shares (000s)	​	​	30,265	​	​	30,420	​	30,695	​	30,937	​	31,254	​	(3.2)	​	​	(0.5)	​
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Core Net Income^1^	​	​	$3,003	​	​	$17,399	​	$18,953	​	$21,518	​	$18,969	​	(84.2)	​	​	(82.7)	​
Core EPS^1^	​	​	$0.10	​	​	$0.57	​	$0.62	​	$0.70	​	$0.61	​	(83.6)	​	​	(82.5)	​

^1^ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $45.3 million in 1Q23 compared to $54.2 million in 4Q22, $61.2 million in 3Q22, $64.7 million in 2Q22, and $63.5 million in 1Q22.

●	Net interest margin, FTE (“NIM”) of 2.27% decreased 109 bps YoY and 43 bps QoQ
●	Prepayment penalty income from loans and securities, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $1.1 million (6 bps to the NIM) in 1Q23 compared to $2.4 million (12 bps) in 4Q22, $2.2 million (11 bps) in 3Q22, $2.6 million (13 bps) in 2Q22, and $2.6 million (14 bps) in 1Q22
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●	Excluding the items in the previous bullet, net interest margin was 2.21% in 1Q23, 2.58% in 4Q22, 2.96% in 3Q22, and 3.22% in both 2Q22 and 1Q22
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●	In order to move more towards a neutral interest rate risk position, the following actions were taken:
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o	Added $200 million of hedges against the investment portfolio converting securities yielding 1.90% into assets yielding 3.41%
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o	Purchases $250.0 million of funding derivatives locking in funding at a weighted average cost of 3.72% with a duration approximately 3.2 years
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o	Extended funding through FHLB advances totaling $71.7 million at 4.05%, with an average duration of 4.0 years
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o	Purchased $66.7 million of floating (reprice within 90 days) rate securities with an initial weighted average yield of 6.45%
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●	The totality of these actions equates to approximately 40% of the goal of moving towards interest rate neutral
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●	Additionally, the balance sheet, as of March 31, 2023, consists of:
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o	Approximately $1.6 billion of assets were floating or swapped into floating rate assets
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o	Funding derivatives totaled $921.5 million with $621.5 million effective at 2.53% for 2.4 years and $300.0 million forward starting at 1.80% with a remaining term of 2.7 years; this strategy was started in 2018
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o	The Company has $2.5 billion of protection in place against a rising rate environment through floating assets and derivative strategy
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The Company recorded a provision for credit losses of $7.5 million in 1Q23 compared to a benefit for credit losses of $12 thousand in 4Q22, a provision for credit losses of $2.1 million in 3Q22, $1.6 million in 2Q22, and $1.4 million in 1Q22.

●	Net charge-offs (recoveries) were $9.2 million in 1Q23 (54 bps of average loans), $0.8 million in 4Q22 (5 bps of average loans), $0.3 million in 3Q22 (2 bps of average loans), $(0.5) million in 2Q22 ((3) bps of average loans), and $0.9 million in 1Q22 (6 bps of average loans)
●	1Q23 net charge-offs were primarily related to a commercial business relationship that was placed on nonaccrual in 2Q22
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Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌3

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Noninterest income (loss) was $6.9 million in 1Q23, $(7.7) million in 4Q22, $9.0 million in 3Q22, $7.4 million in 2Q22, and $1.3 million in 1Q22.

●	Noninterest income included net gains (losses) from fair value adjustments of $2.6 million in 1Q23 ($0.06 per share, net of tax), $(0.6) million in 4Q22 ($(0.02) per share, net of tax), $5.6 million in 3Q22 ($0.13 per share, net of tax), $2.5 million in 2Q22 ($0.06 per share, net of tax), and $(1.8) million in 1Q22 ($(0.04) per share, net of tax)
●	Loss on the sale of securities was $10.9 million ($0.27 per share, net of tax) in 4Q22 as the Company sold $84.2 million of mortgage-based securities with an approximate yield of 1.17%; proceeds were primarily reinvested in 1Q23 into floating rate securities that have a yield that approximates 6.40%
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●	Life insurance proceeds were $0.3 million ($0.01 per share) in 4Q22 and $1.5 million ($0.05 per share) in 2Q22
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●	Absent all above items and other immaterial adjustments, core noninterest income was $4.3 million in 1Q23, up 37.4% YoY and 21.6% QoQ; investment product sales were a significant driver of the YOY and QoQ increase
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Noninterest expense totaled $37.7 million in 1Q23 (a decrease of 2.8% YoY, but an increase of 11.7% QoQ) compared to $33.7 million in 4Q22, $35.6 million in 3Q22, $35.5 million in 2Q22, and $38.8 million in 1Q22.

●	Given the challenging rate environment, management continues to actively review all noninterest expenses
●	Salaries and employee benefits include $1.7 million and $1.4 million benefit from Employee Retention Tax Credit refunds in 1Q23 and 4Q22, respectively, and $2.8 million benefit from a lower discount rate for certain benefit plans in 4Q22
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●	Other operating expenses include $0.6 million reduction in reserves for unfunded commitments in 3Q22
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●	Seasonal compensation expense was $4.1 million and $4.3 million in 1Q23 and 1Q22, respectively
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●	Excluding the effects of other immaterial adjustments, core operating expenses were $37.6 million in 1Q23, down 2.8% YoY but up 11.8% QoQ; excluding the Employee Retention Tax Credit refund and the benefit from the lower discount rate in 4Q22, 1Q23 and 4Q22 core noninterest expense would have been $39.3 million and $37.8 million, respectively
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●	GAAP noninterest expense to average assets was 1.78% in 1Q23, 1.58% in 4Q22, 1.69% in 3Q22, 1.73% in 2Q22, and 1.93% in 1Q22
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The provision for income taxes was $1.8 million in 1Q23 compared to $2.6 million in 4Q22, $9.0 million in 3Q22, $9.9 million in 2Q22, and $6.4 million in 1Q22.

●	The effective tax rate was 25.9% in 1Q23, 20.0% in 4Q22, 27.7% in 3Q22, 28.4% in 2Q22, and 26.1% in 1Q22
●	The 4Q22 effective tax rate declined due to preferential tax items having a larger impact due to lower levels of pre-tax income
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●	The 2Q22 effective tax rate includes a loss of certain state and city tax deductions and a resolution of certain examinations by taxing authorities
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​ Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌4

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Balance Sheet, Credit Quality, and Capital Highlights		​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
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​	​	​	​	​	​	​	​	​	​	​	​	​	YoY		​	QoQ
​	​	1Q23	​	​	4Q22	​	3Q22	​	2Q22	​	1Q22	​	Change		​	Change
Averages ($MM)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Loans	​	$6,871	​	​	$6,881	​	$6,861	​	$6,640	​	$6,579	​	4.4	%	​	(0.1)	%
Total Deposits	​	6,810	​	​	6,678	​	6,277	​	6,441	​	6,410	​	6.2	​	​	2.0	​
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Credit Quality ($000s)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Nonperforming Loans	​	$21,176	​	​	$32,382	​	$29,003	​	$27,948	​	$14,066	​	50.5	%	​	(34.6)	%
Nonperforming Assets	​	42,157	​	​	53,363	​	49,984	​	48,929	​	14,066	​	199.7	​	​	(21.0)	​
Criticized and Classified Loans	​	58,130	​	​	68,093	​	61,684	​	57,145	​	59,548	​	(2.4)	​	​	(14.6)	​
Criticized and Classified Assets	​	79,111	​	​	89,073	​	82,665	​	78,125	​	80,527	​	(1.8)	​	​	(11.2)	​
Allowance for Credit Losses/Loans (%)	​	0.56	​	​	0.58	​	0.59	​	0.58	​	0.57	​	(1)	bp	​	(2)	bps
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Capital	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Book Value/Share	​	$22.84	​	​	$22.97	​	$22.47	​	$22.38	​	$22.26	​	2.6	%	​	(0.6)	%
Tangible Book Value/Share	​	22.18	​	​	22.31	​	21.81	​	21.71	​	21.61	​	2.6	​	​	(0.6)	​
Tang. Common Equity/Tang. Assets (%)	​	7.73	​	​	7.82	​	7.62	​	7.82	​	8.05	​	(32)	bps	​	(9)	bps
Leverage Ratio (%)	​	8.58	​	​	8.61	​	8.74	​	8.91	​	9.05	​	(47)	​	​	(3)	​

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Average loans were $6.9 billion, an increase of 4.4% YoY and down 0.1% QoQ.

●	Maintain the credit strategy of loans secured by real estate with an emphasis on rent regulated multifamily
●	Period end net loans totaled $6.9 billion, up 4.5% YoY, but down 0.4% QoQ
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●	Total loan closings were $173.5 million in 1Q23, $225.2 million in 4Q22, $463.7 million in 3Q22, $503.8 million in 2Q22, and $329.3 million in 1Q22; the loan pipeline was $266.1 million at March 31, 2023, down 59.9% YoY, but up 5.5% QoQ
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●	The diversified loan portfolio is over 88% collateralized by real estate with an average loan-to-value ratio of <37%
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●	Midtown Manhattan office exposure is 0.1% of net loans
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Average total deposits were $6.8 billion, increasing 6.2% YoY and 2.0% QoQ.

●	Average core deposits (non-CD deposits) were 75.3% of total average deposits in 1Q23, compared to 86.1% a year ago
●	Average noninterest bearing deposits decreased 10.5% YoY in 1Q23 and 8.5% QoQ and comprised 13.2% of average total deposits in 1Q23 compared to 15.6% a year ago
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●	Uninsured and uncollateralized deposits totaled $1.1 billion or 16.2% of total deposits; Bank liquidity remains strong with $3.7 billion of availability
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Credit Quality: Nonperforming loans at the end of each quarter totaled $21.2 million at 1Q23, $32.4 million at 4Q22, $29.0 million at 3Q22, $27.9 million at 2Q22, and $14.1 million at 1Q22.

●	Criticized and classified loans were 84 bps of gross loans at 1Q23 compared to 98 bps at 4Q22, 89 bps at 3Q22, 85 bps at 2Q22, and 90 bps at 1Q22
●	Total delinquent loans improved 16 bps QoQ to 42 bps from 58 bps indicating further improvement in future credit quality
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●	Allowance for credit losses were 182.9% of nonperforming loans at 1Q23 compared to 124.9% at 4Q22, and 266.1% at 1Q22
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Capital: Book value per common share was $22.84 at 1Q23, up 2.6% YoY, but down 0.6% QoQ; tangible book value per common share, a non-GAAP measure, was $22.18 at 1Q23, up 2.6% YoY, but down 0.6% QoQ.

●	The Company paid a dividend of $0.22 per share; the Company has ample available liquidity to meet its obligations; Purchased 159,516 shares at an average price of $19.14 in 1Q23 with 434,946 shares remain subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
●	Tangible common equity to tangible assets was 7.73% at 1Q23 compared to 7.82% at 4Q22 and 8.05% at 1Q22; the swaps  portfolio serves as a partial offset to market value changes in the AFS securities portfolio
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●	The Company and the Bank remain well capitalized under all applicable regulatory requirements
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Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌5

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Conference Call Information And Second Quarter Earnings Release Date

Conference Call Information:

●	John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Wednesday, April 26, 2023, at 9:30 AM (ET) to discuss the Company’s first quarter results and strategy.
●	Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
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●	Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=LTE5H6Xo
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●	Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
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●	Replay Access Code: 2825200
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●	The conference call will be simultaneously webcast and archived
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Second Quarter 2023 Earnings Release Date:

The Company plans to release Second Quarter 2023 financial results after the market close on July 25, 2023; followed by a conference call at 9:30 AM (ET) on July 26, 2023.

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

About Flushing Financial Corporation

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

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

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

#FF

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

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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)		2023			​	2022			​	2022			​	2022			​	2022
Performance Ratios ^(1)^	​		​	​	​		​	​	​		​	​	​	​	​	​	​			​
Return on average assets	​		0.24	%	​		0.48	%	​		1.11	%	​	​	1.22	%	​		0.91	%
Return on average equity	​		3.02	​	​		6.06	​	​		13.91	​	​	​	15.00	​	​		10.83	​
Yield on average interest-earning assets ^(2)^	​		4.61	​	​		4.44	​	​		4.10	​	​	​	3.85	​	​		3.77	​
Cost of average interest-bearing liabilities	​		2.80	​	​		2.11	​	​		1.25	​	​	​	0.60	​	​		0.50	​
Cost of funds	​		2.47	​	​		1.84	​	​		1.08	​	​	​	0.52	​	​		0.43	​
Net interest rate spread during period^(2)^	​		1.81	​	​		2.33	​	​		2.85	​	​	​	3.25	​	​		3.27	​
Net interest margin ^(2)^	​		2.27	​	​		2.70	​	​		3.07	​	​	​	3.35	​	​		3.36	​
Noninterest expense to average assets	​		1.78	​	​		1.58	​	​		1.69	​	​	​	1.73	​	​		1.93	​
Efficiency ratio ^(3)^	​		76.48	​	​		59.55	​	​		55.68	​	​	​	52.27	​	​		58.87	​
Average interest-earning assets to<br><br>average interest-bearing liabilities	​		1.19	X	​		1.21	X	​		1.22	X	​	​	1.22	X	​		1.22	X
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Balances	​		​	​	​		​	​	​		​	​	​	​	​	​	​		​	​
Total loans, net	​	$	6,871,192	​	​	$	6,881,245	​	​	$	6,861,463	​	​	$	6,640,331	​	​	$	6,578,680	​
Total interest-earning assets	​		7,996,677	​	​		8,045,691	​	​		7,979,070	​	​	​	7,740,683	​	​		7,570,373	​
Total assets	​		8,468,311	​	​		8,518,019	​	​		8,442,657	​	​	​	8,211,763	​	​		8,049,470	​
Total deposits	​		6,810,485	​	​		6,678,383	​	​		6,276,613	​	​	​	6,440,904	​	​		6,410,063	​
Total interest-bearing liabilities	​		6,703,558	​	​		6,662,209	​	​		6,553,087	​	​	​	6,337,374	​	​		6,220,510	​
Stockholders’ equity	​		683,071	​	​		676,165	​	​		674,282	​	​	​	667,456	​	​		673,012	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Per Share Data		​	​		​	​			​	​			​	​			​	​
Book value per common share ^(4)^	​	$	22.84	​	​	$	22.97	​	​	$	22.47	​	​	$	22.38	​	​	$	22.26	​
Tangible book value per common share ^(5)^	​	$	22.18	​	​	$	22.31	​	​	$	21.81	​	​	$	21.71	​	​	$	21.61	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Stockholders’ Equity	​		​	​	​			​	​			​	​			​	​			​
Stockholders’ equity	​	$	673,459	​	​	$	677,157	​	​	$	670,719	​	​	$	670,812	​	​	$	675,813	​
Tangible stockholders’ equity	​		653,932	​	​		657,504	​	​		650,936	​	​	​	650,894	​	​		656,085	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Consolidated Regulatory Capital Ratios	​	​			​	​			​	​			​	​			​	​
Tier 1 capital	​	$	737,138	​	​	$	746,880	​	​	$	749,526	​	​	$	739,776	​	​	$	731,536	​
Common equity Tier 1 capital	​		690,846	​	​		698,258	​	​		701,532	​	​	​	686,258	​	​		675,434	​
Total risk-based capital	​		965,384	​	​		975,709	​	​		979,021	​	​	​	903,047	​	​		892,861	​
Risk Weighted Assets	​	​	6,659,532	​	​	​	6,640,542	​	​	​	6,689,284	​	​	​	6,522,710	​	​	​	6,232,020	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tier 1 leverage capital (well capitalized = 5%)	​		8.58	%	​		8.61	%	​		8.74	%	​	​	8.91	%	​		9.05	%
Common equity Tier 1 risk-based capital<br><br>(well capitalized = 6.5%)	​		10.37	​	​		10.52	​	​		10.49	​	​	​	10.52	​	​		10.84	​
Tier 1 risk-based capital (well capitalized = 8.0%)	​		11.07	​	​		11.25	​	​		11.20	​	​	​	11.34	​	​		11.74	​
Total risk-based capital (well capitalized = 10.0%)	​		14.50	​	​		14.69	​	​		14.64	​	​	​	13.84	​	​		14.33	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capital Ratios	​			​	​			​	​			​	​	​		​	​			​
Average equity to average assets	​		8.07	%	​		7.94	%	​		7.99	%	​	​	8.13	%	​		8.36	%
Equity to total assets	​		7.94	​	​		8.04	​	​		7.84	​	​	​	8.04	​	​		8.27	​
Tangible common equity to tangible assets ^(6)^	​		7.73	​	​		7.82	​	​		7.62	​	​	​	7.82	​	​		8.05	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Asset Quality	​			​	​			​	​			​	​	​		​	​			​
Nonaccrual loans ^(7)^	​	$	21,176	​	​	$	29,782	​	​	$	27,003	​	​	$	27,848	​	​	$	14,066	​
Nonperforming loans	​		21,176	​	​		32,382	​	​		29,003	​	​	​	27,948	​	​		14,066	​
Nonperforming assets	​		42,157	​	​		53,363	​	​		49,984	​	​	​	48,929	​	​		14,066	​
Net charge-offs (recoveries)	​		9,234	​	​		811	​	​		290	​	​	​	(501)	​	​		935	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Asset Quality Ratios	​			​	​			​	​			​	​	​		​	​			​
Nonperforming loans to gross loans	​		0.31	%	​		0.47	%	​		0.42	%	​	​	0.41	%	​		0.21	%
Nonperforming assets to total assets	​		0.50	​	​		0.63	​	​		0.58	​	​	​	0.59	​	​		0.17	​
Allowance for credit losses to gross loans	​		0.56	​	​		0.58	​	​		0.59	​	​	​	0.58	​	​		0.57	​
Allowance for credit losses to nonperforming assets	​		91.87	​	​		75.79	​	​		82.56	​	​	​	80.57	​	​		266.12	​
Allowance for credit losses to nonperforming loans	​		182.89	​	​		124.89	​	​		142.29	​	​	​	141.06	​	​		266.12	​
Net charge-offs (recoveries) to average loans	​	​	0.54	​	​	​	0.05	​	​	​	0.02	​	​	​	(0.03)	​	​	​	0.06	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Full-service customer facilities	​		26	​	​		25	​	​		25	​	​	​	25	​	​		24	​

^(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 (goodwill, net of deferred taxes). 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, 718-961-5400‌7

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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)	2023		​	2022		​	2022		​	2022		​	2022
Interest and Dividend Income	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and fees on loans	$	82,889	​	$	81,033	​	$	75,546	​	$	69,192	​	$	67,516
Interest and dividends on securities:		​	​		​	​		​	​		​	​		​
Interest		7,240	​		6,511	​		5,676	​		4,929	​		3,745
Dividends		29	​		24	​		17	​		11	​		8
Other interest income		1,959	​		1,702	​		506	​		159	​		51
Total interest and dividend income		92,117	​		89,270	​		81,745	​		74,291	​		71,320
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest Expense		​	​		​	​		​	​		​	​		​
Deposits		39,056	​		27,226	​		11,965	​		4,686	​		3,408
Other interest expense		7,799	​		7,843	​		8,574	​		4,875	​		4,433
Total interest expense		46,855	​		35,069	​		20,539	​		9,561	​		7,841
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Interest Income		45,262	​		54,201	​		61,206	​		64,730	​		63,479
Provision (benefit) for credit losses		7,508	​		(12)	​		2,145	​		1,590	​		1,358
Net Interest Income After Provision (Benefit) for Credit Losses		37,754	​		54,213	​		59,061	​		63,140	​		62,121
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Income (Loss)		​	​		​	​		​	​		​	​		​
Banking services fee income		1,411	​		1,231	​		1,351	​		1,166	​		1,374
Net loss on sale of securities		—	​		(10,948)	​		—	​		—	​		—
Net gain on sale of loans		54	​		46	​		—	​		73	​		—
Net gain on disposition of assets		—	​		104	​		—	​		—	​		—
Net gain (loss) from fair value adjustments		2,619	​		(622)	​		5,626	​		2,533	​		(1,809)
Federal Home Loan Bank of New York stock dividends		697	​		658	​		538	​		407	​		397
Life insurance proceeds		—	​		286	​		—	​		1,536	​		—
Bank owned life insurance		1,109	​		1,126	​		1,132	​		1,115	​		1,114
Other income		1,018	​		467	​		348	​		523	​		237
Total noninterest income (loss)		6,908	​		(7,652)	​		8,995	​		7,353	​		1,313
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Noninterest Expense		​	​		​	​		​	​		​	​		​
Salaries and employee benefits		20,887	​		18,178	​		21,438	​		21,109	​		23,649
Occupancy and equipment		3,793	​		3,701	​		3,541	​		3,760	​		3,604
Professional services		2,483	​		2,130	​		2,570	​		2,285	​		2,222
FDIC deposit insurance		977	​		485	​		738	​		615	​		420
Data processing		1,435	​		1,421	​		1,367	​		1,383	​		1,424
Depreciation and amortization		1,510	​		1,535	​		1,488	​		1,447	​		1,460
Other real estate owned/foreclosure expense		165	​		35	​		143	​		32	​		84
Other operating expenses		6,453	​		6,257	​		4,349	​		4,891	​		5,931
Total noninterest expense		37,703	​		33,742	​		35,634	​		35,522	​		38,794
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income Before Provision for Income Taxes		6,959	​		12,819	​		32,422	​		34,971	​		24,640
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Provision for Income Taxes		1,801	​		2,570	​		8,980	​		9,936	​		6,421
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net Income	$	5,158	​	$	10,249	​	$	23,442	​	$	25,035	​	$	18,219
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic earnings per common share	$	0.17	​	$	0.34	​	$	0.76	​	$	0.81	​	$	0.58
Diluted earnings per common share	$	0.17	​	$	0.34	​	$	0.76	​	$	0.81	​	$	0.58
Dividends per common share	$	0.22	​	$	0.22	​	$	0.22	​	$	0.22	​	$	0.22
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Basic average shares		30,265	​		30,420	​		30,695	​		30,937	​		31,254
Diluted average shares		30,265	​		30,420	​		30,695	​		30,937	​		31,254

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

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FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

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​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)	​	2023		​	2022		​	2022		​	2022		​	2022
ASSETS		​			​			​			​			​
Cash and due from banks	​	$	176,747	​	$	151,754	​	$	164,693	​	$	137,026	​	$	186,407
Securities held-to-maturity:	​		​	​		​	​		​	​		​	​		​
Mortgage-backed securities	​		7,870	​		7,875	​		7,880	​		7,885	​		7,890
Other securities	​		65,653	​		65,836	​		66,032	​		66,230	​		66,327
Securities available for sale:	​		​	​		​	​	​	​	​	​	​	​		​
Mortgage-backed securities	​		380,110	​		384,283	​		468,366	​		510,934	​		553,828
Other securities	​		431,818	​		351,074	​		351,495	​		346,720	​		286,041
Loans	​	​	6,904,176	​	​	6,934,769	​	​	6,956,674	​	​	6,760,393	​	​	6,607,264
Allowance for credit losses	​		(38,729)	​		(40,442)	​		(41,268)	​		(39,424)	​		(37,433)
Net loans	​		6,865,447	​		6,894,327	​		6,915,406	​		6,720,969	​		6,569,831
Interest and dividends receivable	​		46,836	​		45,048	​		42,571	​		38,811	​		37,308
Bank premises and equipment, net	​		21,567	​		21,750	​		22,376	​		22,285	​		22,752
Federal Home Loan Bank of New York stock	​		38,779	​		45,842	​		62,489	​		50,017	​		33,891
Bank owned life insurance	​		214,240	​		213,131	​		212,353	​		211,220	​		211,867
Goodwill	​		17,636	​		17,636	​		17,636	​		17,636	​		17,636
Core deposit intangibles	​	​	1,891	​	​	2,017	​	​	2,147	​	​	2,282	​	​	2,420
Right of use asset	​		42,268	​		43,289	​		44,885	​		46,687	​		48,475
Other assets	​		168,259	​		179,084	​		179,090	​		160,885	​		125,160
Total assets	​	$	8,479,121	​	$	8,422,946	​	$	8,557,419	​	$	8,339,587	​	$	8,169,833
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
LIABILITIES	​			​			​			​			​
Total deposits	​	$	6,734,090	​	$	6,485,342	​	$	6,125,305	​	$	6,407,577	​	$	6,452,895
Borrowed funds	​		887,509	​		1,052,973	​		1,572,830	​		1,089,621	​		877,122
Operating lease liability	​		45,353	​		46,125	​		48,330	​		50,346	​		52,292
Other liabilities	​		138,710	​		161,349	​		140,235	​		121,231	​		111,711
Total liabilities	​		7,805,662	​		7,745,789	​		7,886,700	​		7,668,775	​		7,494,020
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
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	​		262,876	​		264,332	​		263,755	​		262,860	​		261,837
Treasury stock	​		(97,760)	​		(98,535)	​		(90,977)	​		(88,342)	​		(79,834)
Retained earnings	​		545,786	​		547,507	​		543,894	​		527,217	​		508,973
Accumulated other comprehensive loss, net of taxes	​		(37,784)	​		(36,488)	​		(46,294)	​		(31,264)	​		(15,504)
Total stockholders' equity	​		673,459	​		677,157	​		670,719	​		670,812	​		675,813
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total liabilities and stockholders' equity	​	$	8,479,121	​	$	8,422,946	​	$	8,557,419	​	$	8,339,587	​	$	8,169,833
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
(In thousands)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Issued shares	​	​	34,088	​	​	34,088	​	​	34,088	​	​	34,088	​	​	34,088
Outstanding shares	​	​	29,488	​	​	29,476	​	​	29,851	​	​	29,980	​	​	30,367
Treasury shares	​	​	4,600	​	​	4,612	​	​	4,237	​	​	4,108	​	​	3,721

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

​

​

​

^^​

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)	​	2023		​	2022		​	2022		​	2022		​	2022
Interest-earning Assets:		​		​	​		​	​		​	​		​	​
Mortgage loans, net	​	$	5,333,274	​	$	5,338,612	​	$	5,340,694	​	$	5,178,029	​	$	5,152,070
Other loans, net	​		1,537,918	​		1,542,633	​		1,520,769	​		1,462,302	​		1,426,610
Total loans, net^^	​		6,871,192	​		6,881,245	​		6,861,463	​		6,640,331	​		6,578,680
Taxable securities:	​			​			​			​			​
Mortgage-backed securities	​		457,911	​		549,204	​		568,854	​		594,923	​		580,670
Other securities	​		411,723	​		371,897	​		362,629	​		333,158	​		226,744
Total taxable securities	​		869,634	​		921,101	​		931,483	​		928,081	​		807,414
Tax-exempt securities:	​			​			​			​			​
Other securities	​		66,828	​		67,022	​		67,211	​		67,315	​		57,611
Total tax-exempt securities	​		66,828	​		67,022	​		67,211	​		67,315	​		57,611
Interest-earning deposits and federal funds sold	​		189,023	​		176,323	​		118,913	​		104,956	​		126,668
Total interest-earning assets	​		7,996,677	​		8,045,691	​		7,979,070	​		7,740,683	​		7,570,373
Other assets	​		471,634	​		472,328	​		463,587	​		471,080	​		479,097
Total assets	​	$	8,468,311	​	$	8,518,019	​	$	8,442,657	​	$	8,211,763	​	$	8,049,470
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing Liabilities:	​			​			​			​			​
Deposits:	​			​			​			​			​
Savings accounts	​	$	134,945	​	$	146,598	​	$	154,545	​	$	156,785	​	$	156,592
NOW accounts	​		1,970,555	​		1,972,134	​		1,808,608	​		2,089,851	​		2,036,914
Money market accounts	​		2,058,523	​		2,146,649	​		2,136,829	​		2,231,743	​		2,253,630
Certificate of deposit accounts	​		1,679,517	​		1,350,683	​		1,057,733	​		820,476	​		889,847
Total due to depositors	​		5,843,540	​		5,616,064	​		5,157,715	​		5,298,855	​		5,336,983
Mortgagors' escrow accounts	​		70,483	​		82,483	​		68,602	​		97,496	​		71,509
Total interest-bearing deposits	​		5,914,023	​		5,698,547	​		5,226,317	​		5,396,351	​		5,408,492
Borrowings	​		789,535	​		963,662	​		1,326,770	​		941,023	​		812,018
Total interest-bearing liabilities	​		6,703,558	​		6,662,209	​		6,553,087	​		6,337,374	​		6,220,510
Noninterest-bearing demand deposits	​		896,462	​		979,836	​		1,050,296	​		1,044,553	​		1,001,571
Other liabilities	​		185,220	​		199,809	​		164,992	​		162,380	​		154,377
Total liabilities	​		7,785,240	​		7,841,854	​		7,768,375	​		7,544,307	​		7,376,458
Equity	​		683,071	​		676,165	​		674,282	​		667,456	​		673,012
Total liabilities and equity	​	$	8,468,311	​	$	8,518,019	​	$	8,442,657	​	$	8,211,763	​	$	8,049,470
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest-earning assets	​	$	1,293,119	​	$	1,383,482	​	$	1,425,983	​	$	1,403,309	​	$	1,349,863

​

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

​

​

​

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)	​	2023			​	2022			​	2022			​	2022			​	2022
Interest Income:		​		​	​	​		​	​	​		​	​	​		​	​	​		​
Mortgage loans, net	​	$	62,054	​	​	$	60,946	​	​	$	58,374	​	​	$	54,775	​	​	$	53,970	​
Other loans, net	​		20,835	​	​		20,087	​	​		17,172	​	​		14,417	​	​		13,546	​
Total loans, net^^	​		82,889	​	​		81,033	​	​		75,546	​	​		69,192	​	​		67,516	​
Taxable securities:	​			​	​			​	​			​	​			​	​			​
Mortgage-backed securities	​		2,281	​	​		2,425	​	​		2,466	​	​		2,356	​	​		2,167	​
Other securities	​		4,611	​	​		3,723	​	​		2,839	​	​		2,090	​	​		1,119	​
Total taxable securities	​		6,892	​	​		6,148	​	​		5,305	​	​		4,446	​	​		3,286	​
Tax-exempt securities:	​			​	​			​	​			​	​			​	​			​
Other securities	​		477	​	​		489	​	​		492	​	​		625	​	​		591	​
Total tax-exempt securities	​		477	​	​		489	​	​		492	​	​		625	​	​		591	​
Interest-earning deposits and<br><br>federal funds sold	​		1,959	​	​		1,702	​	​		506	​	​		159	​	​		51	​
Total interest-earning assets	​		92,217	​	​		89,372	​	​		81,849	​	​		74,422	​	​		71,444	​
Interest Expense:	​			​	​			​	​			​	​			​	​			​
Deposits:	​			​	​			​	​			​	​			​	​			​
Savings accounts	​	$	126	​	​	$	59	​	​	$	53	​	​	$	50	​	​	$	49	​
NOW accounts	​		13,785	​	​		9,515	​	​		3,640	​	​		1,405	​	​		793	​
Money market accounts	​		14,102	​	​		10,532	​	​		5,280	​	​		1,952	​	​		1,275	​
Certificate of deposit accounts	​		11,007	​	​		7,037	​	​		2,948	​	​		1,273	​	​		1,289	​
Total due to depositors	​		39,020	​	​		27,143	​	​		11,921	​	​		4,680	​	​		3,406	​
Mortgagors' escrow accounts	​		36	​	​		83	​	​		44	​	​		6	​	​		2	​
Total interest-bearing deposits	​		39,056	​	​		27,226	​	​		11,965	​	​		4,686	​	​		3,408	​
Borrowings	​		7,799	​	​		7,843	​	​		8,574	​	​		4,875	​	​		4,433	​
Total interest-bearing liabilities	​		46,855	​	​		35,069	​	​		20,539	​	​		9,561	​	​		7,841	​
Net interest income- tax equivalent	​	$	45,362	​	​	$	54,303	​	​	$	61,310	​	​	$	64,861	​	​	$	63,603	​
Included in net interest income above:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Prepayment penalties received on loans and securities and net of reversals and recovered interest from nonaccrual loans	​	$	680	​	​	$	1,080	​	​	$	1,368	​	​	$	2,281	​	​	$	1,716	​
Net gains/(losses) from fair value adjustments on qualifying hedges included in interest income	​	​	100	​	​		936	​	​		28	​	​		(60)	​	​		(129)	​
Purchase accounting adjustments	​	​	306	​	​		342	​	​		775	​	​		367	​	​		1,058	​
Interest-earning Assets Yields:		​		​	​	​		​	​	​		​	​	​		​	​	​		​
Mortgage loans, net	​	​	4.65	%	​	​	4.57	%	​	​	4.37	%	​	​	4.23	%	​	​	4.19	%
Other loans, net	​		5.42	​	​		5.21	​	​		4.52	​	​		3.94	​	​		3.80	​
Total loans, net^^	​		4.83	​	​		4.71	​	​		4.40	​	​		4.17	​	​		4.11	​
Taxable securities:	​				​	​		​	​	​		​	​	​		​	​	​		​
Mortgage-backed securities	​		1.99	​	​		1.77	​	​		1.73	​	​		1.58	​	​		1.49	​
Other securities	​		4.48	​	​		4.00	​	​		3.13	​	​		2.51	​	​		1.97	​
Total taxable securities	​		3.17	​	​		2.67	​	​		2.28	​	​		1.92	​	​		1.63	​
Tax-exempt securities: ^(1)^	​				​	​		​	​	​		​	​	​		​	​	​		​
Other securities	​		2.86	​	​		2.92	​	​		2.93	​	​		3.71	​	​		4.10	​
Total tax-exempt securities	​		2.86	​	​		2.92	​	​		2.93	​	​		3.71	​	​		4.10	​
Interest-earning deposits and<br><br>federal funds sold	​		4.15	​	​		3.86	​	​		1.70	​	​		0.61	​	​		0.16	​
Total interest-earning assets^(1)^	​		4.61	%	​	​	4.44	%	​	​	4.10	%	​	​	3.85	%	​	​	3.77	%
Interest-bearing Liabilities Yields:	​				​	​		​	​	​			​	​			​	​		​
Deposits:	​				​	​		​	​	​			​	​			​	​		​
Savings accounts	​	​	0.37	%	​	​	0.16	%	​	​	0.14	%	​	​	0.13	%	​	​	0.13	%
NOW accounts	​		2.80	​	​		1.93	​	​		0.81	​	​		0.27	​	​		0.16	​
Money market accounts	​		2.74	​	​		1.96	​	​		0.99	​	​		0.35	​	​		0.23	​
Certificate of deposit accounts	​		2.62	​	​		2.08	​	​		1.11	​	​		0.62	​	​		0.58	​
Total due to depositors	​		2.67	​	​		1.93	​	​		0.92	​	​		0.35	​	​		0.26	​
Mortgagors’ escrow accounts	​		0.20	​	​		0.40	​	​		0.26	​	​		0.02	​	​		0.01	​
Total interest-bearing deposits	​		2.64	​	​		1.91	​	​		0.92	​	​		0.35	​	​		0.25	​
Borrowings	​		3.95	​	​		3.26	​	​		2.58	​	​		2.07	​	​		2.18	​
Total interest-bearing liabilities	​		2.80	%	​	​	2.11	%	​	​	1.25	%	​	​	0.60	%	​	​	0.50	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest rate spread (tax equivalent)^(1)^	​	​	1.81	%	​	​	2.33	%	​	​	2.85	%	​	​	3.25	%	​	​	3.27	%
Net interest margin (tax equivalent)^(1)^	​	​	2.27	%	​	​	2.70	%	​	​	3.07	%	​	​	3.35	%	​	​	3.36	%
Ratio of interest-earning assets to<br><br>interest-bearing liabilities	​	​	1.19	X	​	​	1.21	X	​	​	1.22	X	​	​	1.22	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, 718-961-5400‌11

​

​

​

​

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

​

Deposit Composition

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	1Q23 vs.		​	1Q23 vs.
​	​	March 31,		​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	4Q22		​	1Q22
(Dollars in thousands)		2023		​	2022		​	2022		​	2022		​	2022			% Change			% Change
Noninterest bearing	​	$	872,254	​	$	921,238	​	$	992,378	​	$	1,081,208	​	$	1,041,027	​	(5.3)	%	​	(16.2)	%
Interest bearing:	​		​	​		​	​		​	​		​	​		​	​		​	​
Certificate of deposit accounts		​	1,880,260		​	1,526,338		​	1,036,107		​	906,943		​	886,317		23.2	​		112.1	​
Savings accounts		​	128,245		​	143,641		​	150,552		​	154,670		​	158,542		(10.7)	​		(19.1)	​
Money market accounts		​	1,855,781		​	2,099,776		​	2,113,256		​	2,229,993		​	2,362,390		(11.6)	​		(21.4)	​
NOW accounts		​	1,918,977		​	1,746,190		​	1,762,468		​	1,977,186		​	1,925,124		9.9	​		(0.3)	​
Total interest-bearing deposits		​	5,783,263		​	5,515,945		​	5,062,383		​	5,268,792		​	5,332,373		4.8	​		8.5	​
Total due to depositors		​	6,655,517		​	6,437,183		​	6,054,761		​	6,350,000		​	6,373,400		3.4	​		4.4	​
Mortgagors' escrow deposits	​	​	78,573		​	48,159		​	70,544		​	57,577		​	79,495		63.2	​		(1.2)	​
Total deposits	​	$	6,734,090	​	$	6,485,342	​	$	6,125,305	​	$	6,407,577	​	$	6,452,895	​	3.8	%		4.4	%

​

​

​

Loan Composition

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	1Q23 vs.		​	1Q23 vs.
​	​	March 31,		​	December 31,		​	September 30,		​	June 30,		​	March 31,		​	4Q22		​	1Q22
(Dollars in thousands)		2023		​	2022		​	2022		​	2022		​	2022			% Change			% Change
Multifamily residential	​	$	2,601,174	​	$	2,601,384	​	$	2,608,192	​	$	2,531,858	​	$	2,500,570	​	—	%		4.0	%
Commercial real estate	​		1,904,293	​		1,913,040	​		1,914,326	​		1,864,507	​		1,764,927	​	(0.5)	​		7.9	​
One-to-four family ―<br><br>mixed-use property	​		549,207	​		554,314	​		560,885	​		561,100	​		563,679	​	(0.9)	​		(2.6)	​
One-to-four family ― residential	​		232,302	​		235,067	​		233,469	​		242,729	​		248,226	​	(1.2)	​		(6.4)	​
Co-operative apartments	​		6,115	​		6,179	​		7,015	​		8,130	​		8,248	​	(1.0)	​		(25.9)	​
Construction	​		60,486	​		70,951	​		63,651	​		72,148	​		68,488	​	(14.7)	​		(11.7)	​
Mortgage Loans	​	​	5,353,577	​	​	5,380,935	​	​	5,387,538	​	​	5,280,472	​	​	5,154,138	​	(0.5)	​		3.9	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Small Business Administration^(1)^	​		22,860	​		23,275	​		27,712	​		40,572	​		59,331	​	(1.8)	​		(61.5)	​
Commercial business and other	​		1,518,756	​		1,521,548	​		1,532,497	​		1,431,417	​		1,387,155	​	(0.2)	​		9.5	​
Nonmortgage loans	​	​	1,541,616	​	​	1,544,823	​	​	1,560,209	​	​	1,471,989	​	​	1,446,486	​	(0.2)	​		6.6	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net unamortized premiums and<br><br>unearned loan fees ^(2)^	​		8,983	​		9,011	​		8,927	​		7,932	​		6,640	​	(0.3)	​		35.3	​
Allowance for credit losses	​		(38,729)	​		(40,442)	​		(41,268)	​		(39,424)	​		(37,433)	​	(4.2)	​		3.5	​
Net loans	​	$	6,865,447	​	$	6,894,327	​	$	6,915,406	​	$	6,720,969	​	$	6,569,831	​	(0.4)	%		4.5	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

---

^(1)^ Includes $4.8 million, $5.2 million, $9.6 million, $22.2 million, and $43.2 million of PPP loans at March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

^(2)^ Includes $5.1 million, $5.4 million, $5.8 million, $6.6 million, and $6.9 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022, and March 31, 2022, respectively.

​

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

​

​

​

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)		2023		​	2022		​	2022		​	2022		​	2022
Multifamily residential	​	$	42,164	​	$	65,347	​	$	173,980	​	$	136,902	​	$	98,180
Commercial real estate	​	​	15,570	​	​	20,750	​	​	77,777	​	​	164,826	​	​	45,102
One-to-four family – mixed-use property		​	4,938		​	4,489		​	12,383		​	12,228		​	8,498
One-to-four family – residential		​	4,296		​	7,485		​	4,102		​	4,211		​	9,237
Co-operative apartments		​	—		​	—		​	—		​	—		​	24
Construction		​	10,592		​	7,301		​	7,170		​	8,319		​	8,802
Mortgage Loans	​	​	77,560	​	​	105,372	​	​	275,412	​	​	326,486	​	​	169,843
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Small Business Administration		​	318		​	665		​	46		​	2,750		​	—
Commercial business and other		​	95,668		​	119,191		​	188,202		​	174,551		​	159,476
Nonmortgage Loans	​	​	95,986	​	​	119,856	​	​	188,248	​	​	177,301	​	​	159,476
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Closings	​	$	173,546	​	$	225,228	​	$	463,660	​	$	503,787	​	$	329,319

​

​

Weighted Average Rate on Loan Closings

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended
​		March 31,		​	December 31,		​	September 30,		​	June 30,		​	March 31,
Loan type		2023		​	2022		​	2022		​	2022		​	2022
Mortgage loans		6.30	%	​	5.59	%	​	4.37	%	​	3.76	%	​	3.61	%
Nonmortgage loans		7.58	​	​	6.57	​	​	4.93	​	​	4.21	​	​	3.27	​
Total loans		7.01	%	​	6.10	%	​	4.60	%	​	3.92	%	​	3.44	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

​

​

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

​

​

​

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)		2023			​	2022			​	2022			​	2022			​	2022
Allowance for credit losses - loans	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Beginning balances	​	$	40,442	​	​	$	41,268	​	​	$	39,424	​	​	$	37,433	​	​	$	37,135	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net loan charge-off (recoveries):	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Multifamily residential		​	(1)		​	​	132		​	​	—		​	​	(1)		​	​	—
One-to-four family – residential			(36)		​		17		​		2		​		(2)		​		(2)
Small Business Administration			(6)		​		(9)		​		(12)		​		13		​		1,015
Taxi medallion			—		​		—		​		—		​	​	(435)		​		(12)
Commercial business and other			9,277		​		671		​		300		​		(76)		​		(66)
Total		​	9,234	​	​	​	811	​	​	​	290	​	​	​	(501)	​	​	​	935	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Provision (benefit) for loan losses	​	​	7,521	​	​	​	(15)	​	​	​	2,134	​	​	​	1,490	​	​	​	1,233	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ending balance	​	$	38,729	​	​	$	40,442	​	​	$	41,268	​	​	$	39,424	​	​	$	37,433	​
​				​	​			​	​			​	​			​	​			​
Gross charge-offs	​	$	9,298	​	​	$	1,938	​	​	$	324	​	​	$	50	​	​	$	1,036	​
Gross recoveries	​	​	64	​	​	​	1,127	​	​	​	34	​	​	​	551	​	​	​	101	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Allowance for credit losses - loans to gross loans	​	​	0.56	%	​	​	0.58	%	​	​	0.59	%	​	​	0.58	%	​	​	0.57	%
Net loan charge-offs (recoveries) to average loans	​	​	0.54	​	​	​	0.05	​	​	​	0.02	​	​	​	(0.03)	​	​	​	0.06	​

​

​

Nonperforming Assets

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​		March 31,			​	December 31,			​	September 30,			​	June 30,			​	March 31,
(Dollars in thousands)		2023			​	2022			​	2022			​	2022			​	2022
Loans 90 Days Or More Past Due and Still Accruing:		​			​	​			​	​			​	​			​	​		​
Commercial real estate	​	$	—	​	​	$	—	​	​	$	2,000	​	​	$	—	​	​	$	—	​
Construction	​	​	—	​	​	​	2,600	​	​	​	—	​	​	​	—	​	​	​	—	​
Commercial business and other	​	​	—	​	​	​	—	​	​	​	—	​	​	​	100	​	​	​	—	​
Total	​		—	​	​		2,600	​	​		2,000	​	​		100	​	​		—	​
​	​			​	​			​	​			​	​			​	​			​
Nonaccrual Loans:	​			​	​			​	​			​	​			​	​			​
Multifamily residential	​		3,628	​	​		3,206	​	​		3,414	​	​		3,414	​	​		3,414	​
Commercial real estate	​		—	​	​		237	​	​		1,851	​	​		242	​	​		5	​
One-to-four family - mixed-use property^(1)^	​		790	​	​		790	​	​		790	​	​		790	​	​		790	​
One-to-four family - residential	​		4,961	​	​		4,425	​	​		4,655	​	​		5,055	​	​		7,387	​
Construction	​		—	​	​		—	​	​		—	​	​		856	​	​		—	​
Small Business Administration	​		937	​	​		937	​	​		937	​	​		937	​	​		937	​
Commercial business and other^(1)^	​		10,860	​	​		20,187	​	​		15,356	​	​		16,554	​	​		1,533	​
Total	​		21,176	​	​		29,782	​	​		27,003	​	​		27,848	​	​		14,066	​
​	​			​	​			​	​			​	​			​	​			​
Total Nonperforming Loans (NPLs)	​		21,176	​	​		32,382	​	​		29,003	​	​		27,948	​	​		14,066	​
​	​			​	​			​	​			​	​			​	​			​
Total Nonaccrual HTM Securities	​	​	20,981	​	​		20,981	​	​		20,981	​	​		20,981	​	​		—	​
​	​			​	​			​	​			​	​			​	​			​
Total Nonperforming Assets	​	$	42,157	​	​	$	53,363	​	​	$	49,984	​	​	$	48,929	​	​	$	14,066	​
​	​			​	​			​	​			​	​			​	​			​
Nonperforming Assets to Total Assets	​		0.50	%	​		0.63	%	​		0.58	%	​		0.59	%	​		0.17	%
Allowance for Credit Losses to NPLs	​		182.9	%	​		124.9	%	​		142.3	%	​		141.1	%	​		266.1	%

---

^(1)^ Adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023; Not included in the above analysis are nonaccrual performing TDR one-to-four family - mixed use property loans totaling $0.2 million in 4Q22 and in 3Q22 and $0.3 million in 2Q22 and 1Q22; nonaccrual performing TDR commercial business loans totaling less than $0.1 million in 4Q22, $2.9 million in 3Q22, and $2.8 million in 2Q22 and 1Q22. Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌14

​

​

​

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, 718-961-5400‌15

​

​

​

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)	​	2023			​	2022			​	2022			​	2022			​	2022
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP income before income taxes	​	$	6,959	​	​	$	12,819	​	​	$	32,422	​	​	$	34,971	​	​	$	24,640	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net (gain) loss from fair value adjustments<br><br>(Noninterest income (loss))	​		(2,619)	​	​		622	​	​		(5,626)	​	​		(2,533)	​	​		1,809	​
Net loss on sale of securities<br><br>(Noninterest income (loss))	​		—	​	​		10,948	​	​		—	​	​		—	​	​		—	​
Life insurance proceeds (Noninterest income (loss))	​		—	​	​		(286)	​	​		—	​	​		(1,536)	​	​		—	​
Net gain on disposition of assets<br><br>(Noninterest income (loss))	​		—	​	​		(104)	​	​		—	​	​		—	​	​		—	​
Net (gain) loss from fair value adjustments on qualifying hedges (Interest and fees on loans)	​		(100)	​	​		(936)	​	​		(28)	​	​		60	​	​		129	​
Net amortization of purchase accounting adjustments (Various)	​	​	(188)	​	​	​	(219)	​	​	​	(650)	​	​	​	(237)	​	​	​	(924)	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Core income before taxes	​		4,052	​	​		22,844	​	​		26,118	​	​		30,725	​	​		25,654	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Provision for core income taxes	​		1,049	​	​		5,445	​	​		7,165	​	​		9,207	​	​		6,685	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Core net income	​	$	3,003	​	​	$	17,399	​	​	$	18,953	​	​	$	21,518	​	​	$	18,969	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP diluted earnings per common share	​	$	0.17	​	​	$	0.34	​	​	$	0.76	​	​	$	0.81	​	​	$	0.58	​
Net (gain) loss from fair value adjustments, net of tax	​		(0.06)	​	​		0.02	​	​		(0.13)	​	​		(0.06)	​	​		0.04	​
Net loss on sale of securities, net of tax	​		—	​	​		0.27	​	​		—	​	​		—	​	​		—	​
Life insurance proceeds	​		—	​	​		(0.01)	​	​		—	​	​		(0.05)	​	​		—	​
Net gain on disposition of assets, net of tax	​		—	​	​		—	​	​		—	​	​		—	​	​		—	​
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax	​		—	​	​		(0.02)	​	​		—	​	​		—	​	​		—	​
Net amortization of purchase accounting adjustments, net of tax	​	​	(0.01)	​	​	​	(0.01)	​	​	​	(0.02)	​	​	​	(0.01)	​	​	​	(0.02)	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Core diluted earnings per common share^(1)^	​	$	0.10	​	​	$	0.57	​	​	$	0.62	​	​	$	0.70	​	​	$	0.61	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Core net income, as calculated above	​	$	3,003	​	​	$	17,399	​	​	$	18,953	​	​	$	21,518	​	​	$	18,969	​
Average assets	​		8,468,311	​	​		8,518,019	​	​		8,442,657	​	​		8,211,763	​	​		8,049,470	​
Average equity	​		683,071	​	​		676,165	​	​		674,282	​	​		667,456	​	​		673,012	​
Core return on average assets^(2)^	​		0.14	%	​		0.82	%	​		0.90	%	​		1.05	%	​		0.94	%
Core return on average equity^(2)^	​		1.76	%	​		10.29	%	​		11.24	%	​		12.90	%	​		11.27	%

​

---

^(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, 718-961-5400‌16

​

​

​

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)	​	2023			2022			2022			2022			2022		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP Net interest income	​	$	45,262	​	$	54,201	​	$	61,206	​	$	64,730	​	$	63,479	​
Net (gain) loss from fair value adjustments on qualifying hedges	​	​	(100)	​	​	(936)	​	​	(28)	​	​	60	​	​	129	​
Net amortization of purchase accounting adjustments	​	​	(306)	​	​	(342)	​	​	(775)	​	​	(367)	​	​	(1,058)	​
Core Net interest income	​	$	44,856	​	$	52,923	​	$	60,403	​	$	64,423	​	$	62,550	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP Noninterest income (loss)	​	$	6,908	​	$	(7,652)	​	$	8,995	​	$	7,353	​	$	1,313	​
Net (gain) loss from fair value adjustments	​	​	(2,619)	​	​	622	​	​	(5,626)	​	​	(2,533)	​	​	1,809	​
Net loss on sale of securities	​	​	—	​	​	10,948	​	​	—	​	​	—	​	​	—	​
Life insurance proceeds	​	​	—	​	​	(286)	​	​	—	​	​	(1,536)	​	​	—	​
Net gain on sale of assets	​	​	—	​	​	(104)	​	​	—	​	​	—	​	​	—	​
Core Noninterest income	​	$	4,289	​	$	3,528	​	$	3,369	​	$	3,284	​	$	3,122	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP Noninterest expense	​	$	37,703	​	$	33,742	​	$	35,634	​	$	35,522	​	$	38,794	​
Net amortization of purchase accounting adjustments	​	​	(118)	​	​	(123)	​	​	(125)	​	​	(130)	​	​	(134)	​
Core Noninterest expense	​	$	37,585	​	$	33,619	​	$	35,509	​	$	35,392	​	$	38,660	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest income	​	$	45,262	​	$	54,201	​	$	61,206	​	$	64,730	​	$	63,479	​
Noninterest income (loss)	​	​	6,908	​	​	(7,652)	​	​	8,995	​	​	7,353	​	​	1,313	​
Noninterest expense	​	​	(37,703)	​	​	(33,742)	​	​	(35,634)	​	​	(35,522)	​	​	(38,794)	​
Pre-provision pre-tax net revenue	​	$	14,467	​	$	12,807	​	$	34,567	​	$	36,561	​	$	25,998	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Core:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest income	​	$	44,856	​	$	52,923	​	$	60,403	​	$	64,423	​	$	62,550	​
Noninterest income	​	​	4,289	​	​	3,528	​	​	3,369	​	​	3,284	​	​	3,122	​
Noninterest expense	​	​	(37,585)	​	​	(33,619)	​	​	(35,509)	​	​	(35,392)	​	​	(38,660)	​
Pre-provision pre-tax net revenue	​	$	11,560	​	$	22,832	​	$	28,263	​	$	32,315	​	$	27,012	​
Efficiency Ratio	​	​	76.5	%	​	59.6	%	​	55.7	%	​	52.3	%	​	58.9	%

​

​

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

​

​

​

​

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)	2023			​	2022			​	2022			​	2022			​	2022			​
GAAP net interest income	$	45,262	​	​	$	54,201	​	​	$	61,206	​	​	$	64,730	​	​	$	63,479	​	​
Net (gain) loss from fair value adjustments on qualifying hedges		(100)	​	​		(936)	​	​		(28)	​	​		60	​	​		129	​	​
Net amortization of purchase accounting adjustments	​	(306)	​	​	​	(342)	​	​	​	(775)	​	​	​	(367)	​	​	​	(1,058)	​	​
Tax equivalent adjustment	​	100	​	​	​	102	​	​	​	104	​	​	​	131	​	​	​	124	​	​
Core net interest income FTE	$	44,956	​	​	$	53,025	​	​	$	60,507	​	​	$	64,554	​	​	$	62,674	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total average interest-earning assets ^(1)^	$	8,001,271	​	​	$	8,050,601	​	​	$	7,984,558	​	​	$	7,746,640	​	​	$	7,577,053	​	​
Core net interest margin FTE		2.25	%	​		2.63	%	​		3.03	%	​		3.33	%	​		3.31	%	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
GAAP interest income on total loans, net	$	82,889	​	​	$	81,033	​	​	$	75,546	​	​	$	69,192	​	​	$	67,516	​	​
Net (gain) loss from fair value adjustments on qualifying hedges - loans		(101)	​	​		(936)	​	​		(28)	​	​		60	​	​		129	​	​
Net amortization of purchase accounting adjustments	​	(316)	​	​	​	(372)	​	​	​	(783)	​	​	​	(357)	​	​	​	(1,117)	​	​
Core interest income on total loans, net	$	82,472	​	​	$	79,725	​	​	$	74,735	​	​	$	68,895	​	​	$	66,528	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average total loans, net ^(1)^	$	6,876,495	​	​	$	6,886,900	​	​	$	6,867,758	​	​	$	6,647,131	​	​	$	6,586,253	​	​
Core yield on total loans		4.80	%	​		4.63	%	​		4.35	%	​		4.15	%	​		4.04	%	​

​

---

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

​

​

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

​

​

​

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)	​	2023			​	2022			​	2022			​	2022			​	2022
Total Equity	​	$	673,459	​	​	$	677,157	​	​	$	670,719	​	​	$	670,812	​	​	$	675,813	​
Less:	​			​	​			​	​			​	​			​	​			​
Goodwill	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​
Core deposit Intangibles	​	​	(1,891)	​	​	​	(2,017)	​	​	​	(2,147)	​	​	​	(2,282)	​	​	​	(2,420)	​
Intangible deferred tax liabilities	​		—	​	​	​	—	​	​	​	—	​	​	​	—	​	​	​	328	​
Tangible Stockholders' Common Equity	​	$	653,932	​	​	$	657,504	​	​	$	650,936	​	​	$	650,894	​	​	$	656,085	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Assets	​	$	8,479,121	​	​	$	8,422,946	​	​	$	8,557,419	​	​	$	8,339,587	​	​	$	8,169,833	​
Less:	​			​	​			​	​			​	​			​	​			​
Goodwill	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​	​		(17,636)	​
Core deposit Intangibles	​	​	(1,891)	​	​	​	(2,017)	​	​	​	(2,147)	​	​	​	(2,282)	​	​	​	(2,420)	​
Intangible deferred tax liabilities	​		—	​	​		—	​	​		—	​	​		—	​	​		328	​
Tangible Assets	​	$	8,459,594	​	​	$	8,403,293	​	​	$	8,537,636	​	​	$	8,319,669	​	​	$	8,150,105	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tangible Stockholders' Common Equity to Tangible Assets	​		7.73	%	​		7.82	%	​		7.62	%	​		7.82	%	​		8.05	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

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