10-Q

Table of Contents ​

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

​

FORM 10-Q

​

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

​

For the quarterly period ended March 31, 2026

​

Commission file number 001-33013

​

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

​

Delaware

(State or other jurisdiction of incorporation or organization)

​

11-3209278

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

​

220 RXR Plaza, **** Uniondale , New York **** 11556

(Address of principal executive offices)

​

( 718 ) 961-5400

(Registrant’s telephone number, including area code)

​

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    X   Yes        __No

​

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    X   Yes        __No

​

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer” ,“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

​

​	​
Large accelerated filer  __	Accelerated filer  X
Non-accelerated filer  __	Smaller reporting company  __
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.

​

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  __ Yes    X   No

​

The number of shares of the registrant’s Common Stock outstanding as of April 30, 2026 was 33,883,626.

​

​

​

​

Table of Contents TABLE OF CONTENTS

​

​	PAGE
PART I — FINANCIAL INFORMATION	​
ITEM 1. Financial Statements - (Unaudited)	​
Consolidated Statements of Financial Condition	1
Consolidated Statements of Operations	2
Consolidated Statements of Comprehensive Income	3
Consolidated Statements of Changes in Stockholders’ Equity	4
Consolidated Statements of Cash Flows	5
Notes to Consolidated Financial Statements	7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	57
ITEM 4. Controls and Procedures	57
PART II — OTHER INFORMATION	​
ITEM 1. Legal Proceedings	58
ITEM 1A. Risk Factors	58
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	58
ITEM 3. Defaults Upon Senior Securities	58
ITEM 4. Mine Safety Disclosures	58
ITEM 5. Other Information	58
ITEM 6. Exhibits	59
SIGNATURES	61

​

​

​

​ i

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Financial Condition

(Unaudited)

​

Item 1.   Financial Statements

​	​	​	​	​	​	​
​	​	March 31,		​	December 31,
​	​	2026		​	2025
​	​	(Dollars in thousands, except per share data)
Assets		​	​		​	​
Cash and due from banks (restricted cash of $16,615 for both periods)	​	$	158,707	​	$	126,076
Securities held-to-maturity, net of allowance of $338 and $348, respectively (assets pledged of $4,689 and $4,695, respectively; fair value of $45,212 and $46,232, respectively)	​		49,853	​		50,180
Securities available for sale, at fair value (amortized cost of $1,633,466 and $1,387,619, respectively; net of an allowance of $2,774 and $2,921, respectively; assets pledged of $102,369 and $115,974, respectively; $14,527 and $14,412 at fair value pursuant to the fair value option, respectively)	​		1,628,587	​		1,389,924
Loans held for investment, net of fees and costs	​		6,561,530	​		6,653,952
Less: Allowance for credit losses	​		(44,450)	​		(42,802)
Net loans held of investment	​		6,517,080	​		6,611,150
Interest and dividends receivable	​		60,418	​		59,436
Bank premises and equipment, net	​		17,193	​		17,734
Federal Home Loan Bank of New York stock, at cost	​		18,520	​		18,937
Bank owned life insurance	​		228,881	​		226,939
Core deposit intangibles	​	​	696	​	​	773
Right-of-use assets	​	​	51,016	​		53,118
Other assets	​		131,898	​		139,035
Total assets	​	$	8,862,849	​	$	8,693,302
​	​	​	​	​	​	​
Liabilities	​		​	​		​
Due to depositors:	​		​	​		​
Non-interest bearing	​	$	995,529	​	$	969,287
Interest-bearing	​		6,488,617	​		6,282,865
Total Due to depositors	​	​	7,484,146	​	​	7,252,152
Mortgagors' escrow deposits	​		96,242	​		59,590
Borrowed funds:	​		​	​		​
Federal Home Loan Bank advances and other borrowings	​		172,185	​		243,933
Subordinated debentures	​		189,243	​		189,054
Junior subordinated debentures, at fair value	​		55,071	​		51,666
Total borrowed funds	​		416,499	​		484,653
Operating lease liability	​	​	51,916	​	​	53,842
Other liabilities	​		116,638	​		135,090
Total liabilities	​		8,165,441	​		7,985,327
​	​	​	​	​	​	​
Stockholders' Equity	​		​	​		​
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)	​		—	​		—
Common stock ($0.01 par value; 100,000,000 shares authorized; 38,677,787 shares issued; 33,883,626 and 33,778,438 shares outstanding, respectively)	​		387	​		387
Additional paid-in capital	​		325,789	​		326,613
Treasury stock, at average cost (4,794,161 and 4,899,349 shares, respectively)	​		(96,649)	​		(98,948)
Retained earnings	​		470,540	​		480,376
Accumulated other comprehensive income, net of taxes	​		(2,659)	​		(453)
Total stockholders' equity	​		697,408	​		707,975
​	​	​	​	​	​	​
Total liabilities and stockholders' equity	​	$	8,862,849	​	$	8,693,302

The accompanying notes are an integral part of these consolidated financial statements.

​

​

​ -1-

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Operations

(Unaudited)

​

​	​	​	​	​	​	​
​	​	For the three months ended
​	​ ​ ​	March 31,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(In thousands, except per share data)
Interest and dividend income	​	​	​	​	​	​
Interest and fees on loans	​	$	91,643	​	$	93,032
Interest and dividends on securities:	​		​	​		​
Interest	​		19,560	​	​	21,413
Dividends	​		25	​		28
Other interest income	​	​	1,782	​		2,063
Total interest and dividend income	​		113,010	​		116,536
Interest expense	​		​	​		​
Deposits	​		52,823	​		57,174
Other interest expense	​		4,993	​		6,373
Total interest expense	​		57,816	​		63,547
Net interest income	​		55,194	​		52,989
Provision (benefit) for credit losses	​		2,011	​		4,318
Net interest income after provision (benefit) for credit losses	​		53,183	​		48,671
Non-interest income (loss)	​		​	​		​
Banking services fee income	​		1,868	​		1,521
Net gain (loss) on sale of loans	​		94	​		630
Net gain (loss) from fair value adjustments	​		(3,560)	​		(152)
Federal Home Loan Bank of New York stock dividends	​		365	​		697
Gain on life insurance proceeds	​		99	​		—
Bank owned life insurance	​		2,202	​		1,574
Other income	​		717	​		804
Total non-interest income (loss)	​		1,785	​		5,074
Non-interest expense	​		​	​	​	​
Salaries and employee benefits	​		26,610	​		22,896
Occupancy and equipment	​		4,557	​		4,092
Professional services	​		4,332	​		2,885
FDIC deposit insurance	​		1,001	​		1,709
Data processing	​		1,835	​		1,868
Depreciation and amortization of bank premises and equipment	​		1,321	​		1,373
Other real estate owned / foreclosure expense	​		49	​		345
Impairment of goodwill	​	​	—	​	​	17,636
Other operating expenses	​		7,070	​		6,872
Total non-interest expense	​		46,775	​		59,676
Income (loss) before income taxes	​		8,193	​		(5,931)
​	​	​	​	​	​	​
Provision (benefit) for income taxes	​		2,360	​		3,865
Net income (loss)	​	$	5,833	​	$	(9,796)
​	​	​	​	​	​	​
Basic earnings (loss) per common share	​	$	0.17	​	$	(0.29)
Diluted earnings (loss) per common share	​	$	0.17	​	$	(0.29)

​

The accompanying notes are an integral part of these consolidated financial statements.

​ -2-

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

​

​	​	​	​	​	​	​
​	​	For the three months ended
​	​	March 31,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(In thousands)
Net income (loss)	​	$	5,833	​	$	(9,796)
Other comprehensive income (loss), net of tax:	​		​	​		​
Amortization of actuarial (gains) losses, net of taxes of ($4), and $23, respectively.	​		9	​		(50)
​	​	​	​	​	​	​
Change in net unrealized gains (losses) on securities available for sale, net of taxes of $2,225, and ($1,281), respectively.	​		(5,107)	​		2,871
Net unrealized gains (losses) on cashflow hedges, net of taxes of ($1,212) and $3,240, respectively.	​		2,782	​		(7,261)
Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of ($47), and ($2), respectively.	​		110	​		2
Other comprehensive income (loss), net of tax:	​		(2,206)	​		(4,438)
Comprehensive net income (loss)	​	$	3,627	​	$	(14,234)

​

The accompanying notes are an integral part of these consolidated financial statements. -3-

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

(Unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​		​	Additional		​	​		​	​		​	Accumulated Other		​	​
​	​	​	Shares	​	Common		​	Paid-in		​	Treasury		​	Retained		​	Comprehensive		​	​	​
(Dollars in thousands, except per share data)	​	Outstanding		​	Stock		​	Capital		​ ​ ​	Stock		​	Earnings		​	Income (Loss)		​	Total
Balance at December 31, 2025	​	​	33,778,438	​	$	387	​	$	326,613	​	$	(98,948)	​	$	480,376	​	$	(453)	​	$	707,975
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	​	​	—	​		—	​	​	—	​	​	—	​	​	5,833	​	​	—	​		5,833
Vesting of restricted stock unit awards	​	​	144,877	​		—	​	​	(2,567)	​	​	2,923	​	​	(356)	​	​	—	​		—
Stock-based compensation expense	​	​	—	​		—	​	​	1,743	​	​	—	​	​	—	​	​	—	​		1,743
Repurchase of shares to satisfy tax obligation	​	​	(39,689)	​		—	​	​	—	​	​	(624)	​	​	—	​	​	—	​		(624)
Dividends on common stock ($0.44 per share)	​	​	—	​		—	​	​	—	​	​	—	​	​	(15,313)	​	​	—	​		(15,313)
Other comprehensive income (loss)	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(2,206)	​	​	(2,206)
Balance at March 31, 2026	​	​	33,883,626	​	$	387	​	$	325,789	​	$	(96,649)	​	$	470,540	​	$	(2,659)	​	$	697,408

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​	​	​	​	​ ​ ​	Additional		​	​	​	​ ​ ​	​		​ ​ ​	Accumulated Other		​ ​ ​	​
​	​	Shares	​	Common		​	Paid-in		​	Treasury		​	Retained		​	Comprehensive		​	​
(Dollars in thousands, except per share data)	​	Outstanding	​	Stock		​	Capital		​ ​ ​	Stock		​	Earnings		​	Income (Loss)		​	Total
Balance at December 31, 2024	​	33,659,067	​	$	387	​	$	326,671	​	$	(101,655)	​	$	492,003	​	$	7,133	​	$	724,539
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net income (loss)	​	—	​		—	​	​	—	​	​	—	​	​	(9,796)	​	​	—	​		(9,796)
Vesting of restricted stock unit awards	​	166,543	​		—	​	​	(3,156)	​	​	3,368	​	​	(212)	​	​	—	​		—
Stock-based compensation expense	​	—	​		—	​	​	775	​	​	—	​	​	—	​	​	—	​		775
Repurchase of shares to satisfy tax obligation	​	(48,922)	​		—	​	​	—	​	​	(706)	​	​	—	​	​	—	​		(706)
Dividends on common stock ($0.22 per share)	​	—	​		—	​	​	—	​	​	—	​	​	(7,523)	​	​	—	​		(7,523)
Other comprehensive income	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	(4,438)	​	​	(4,438)
Balance at March 31, 2025	​	33,776,688	​	$	387	​	$	324,290	​	$	(98,993)	​	$	474,472	​	$	2,695	​	$	702,851

​

The accompanying notes are an integral part of these consolidated financial statements.

​

​ -4-

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

​

​	​	​	​	​	​	​
​	​	For the three months ended March 31,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(In thousands)
Operating Activities	​	​	​	​	​	​
Net income (loss)	​	$	5,833	​	$	(9,796)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	​		​	​		​
Provision (benefit) for credit losses	​		2,011	​		4,318
Depreciation and amortization of premises and equipment	​		1,321	​		1,373
Net (gain) loss on sales of loans	​		(94)	​		(630)
Net amortization (accretion) of premiums and discounts	​		990	​		401
Impairment of goodwill	​	​	—	​	​	17,636
Deferred income tax provision (benefit)	​	​	1,530	​	​	2,863
Net loss (gain) from fair value adjustments	​	​	3,560	​	​	152
Net (gain) loss from fair value adjustments of hedges	​	​	(34)	​	​	(56)
Loss (gain) from life insurance proceeds	​		(99)	​		—
Loss (income) from Bank owned life insurance	​		(2,202)	​		(1,574)
Stock-based compensation expense	​		1,743	​		775
Deferred compensation	​		(224)	​		(1,008)
Amortization of core deposit intangibles	​	​	77	​	​	94
(Increase) decrease in other assets	​		(4,764)	​		6,254
(Decrease) increase in other liabilities	​		(18,553)	​		(13,950)
Net cash provided by (used in) operating activities	​	​	(8,905)	​	​	6,852
Investing Activities	​		​	​		​
Purchases of premises and equipment	​		(773)	​		(1,702)
Purchases of Federal Home Loan Bank New York stock	​	​	(751)	​	​	(799)
Redemptions of Federal Home Loan Bank New York stock	​		1,168	​		20,420
Proceeds from prepayments of securities held-to-maturity	​		336	​		327
Purchases of securities available for sale	​		(354,173)	​		(25,114)
Proceeds from sales and calls of securities available for sale	​		34,266	​		14,081
Proceeds from maturities and prepayments of securities available for sale	​		74,143	​		38,455
Proceeds from bank owned life insurance	​	​	522	​	​	1,633
Change in cash collateral	​		—	​		(17,940)
Net repayments (originations) of loans	​		126,154	​		55,399
Purchases of loans	​		(33,951)	​		(58,342)
Proceeds from sale of loans originally classified as held for investment	​		6,174	​		50,252
Net cash provided by (used in) investing activities	​	​	(146,885)	​	​	76,670

​

​ -5-

Table of Contents PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Cash Flows (Contd.)

(Unaudited)

​

​	​	​	​	​	​	​	​
​	​	For the three months ended March 31,
​	​	2026		​	2025		​
​	​	(In thousands)
Financing Activities	​	​	​	​	​	​	​
Net increase (decrease) in noninterest-bearing deposits	​	$	26,242	​	$	27,169	​
Net increase (decrease) in interest-bearing deposits	​		205,556	​		475,194	​
Net increase (decrease) in mortgagors' escrow deposits	​		36,652	​		36,682	​
Net proceeds (repayments) from short-term borrowed funds	​		(60,000)	​		(495,000)	​
Repayment of long-term borrowings	​		(11,748)	​		—	​
Repurchase of shares to satisfy tax obligations	​	​	(624)	​	​	(706)	​
Cash dividends paid	​		(7,657)	​		(7,523)	​
Net cash provided by (used in) financing activities	​		188,421	​		35,816	​
Net increase (decrease) in cash and cash equivalents, and restricted cash	​		32,631	​		119,338	​
Cash, cash equivalents, and restricted cash, beginning of period	​		126,076	​		152,574	​
Cash, cash equivalents, and restricted cash, end of period	​	$	158,707	​	$	271,912	​
Supplemental disclosure of cash flow information:	​		​	​		​	​
Cash payments for:	​	​	​	​	​	​	​
Interest paid	​	$	56,943	​	$	66,614	​
Income taxes paid, net of refunds	​		156	​		153	​
Supplemental disclosure of non- cash flow investing activities:	​	​	​	​	​	​	​
Transfer of loans held for investment to loans held for sale	​	​	6,080	​	​	29,653	​
Transfer of loans held for sale to loans held for investment	​		—	​		26,748	​
Supplemental disclosure of non- cash flow financing activities:	​	​	​	​	​	​	​
Dividends declared but not paid	​		7,656	​		—	​

​

The accompanying notes are an integral part of these consolidated financial statements.

​

​

​ -6-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

1.     Basis of Presentation

The primary business of Flushing Financial Corporation (the “Company”), a Delaware corporation, is the operation of its wholly owned subsidiary, Flushing Bank (the “Bank”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q (“Quarterly Report”) include the collective results of the Company and its direct and indirect wholly owned subsidiaries, including the Bank, Flushing Service Corporation and FSB Properties Inc., which are collectively herein referred to as “we,” “us,” “our” and the “Company.”

​

The Company also owns Flushing Financial Capital Trust II, Flushing Financial Capital Trust III, and Flushing Financial Capital Trust IV (the “Trusts”), which are special purpose business trusts. The Trusts are not included in the Company’s consolidated financial statements, as the Company would not absorb the losses of the Trusts if any losses were to occur.

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for such periods presented of the Company. Such adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report. All inter-company balances and transactions have been eliminated in consolidation. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for the full year.

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Quarterly Report on Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

When necessary, certain reclassifications were made to prior-year amounts to conform to the current-year presentation. Such reclassifications had no effect on the prior period net income or shareholders’ equity and were insignificant amounts.

​

2.     Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for credit losses, the review of the need for a valuation allowance of the Company’s deferred tax assets, and the fair value of financial instruments. For reporting period ended March 31, 2025, the Company considered the evaluation of goodwill for impairment as a significant estimate.

​ -7-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

3.     Earnings Per Share

Earnings per common share have been computed based on the following:

​

​	​	​	​	​	​	​
​	For the three months ended					​
​	March 31,					​
​	2026		​ ​ ​	2025		​ ​ ​
​	(In thousands, except per share data)					​
Net income (loss), as reported	$	5,833	​	$	(9,796)	​
Less: Dividends paid and earnings allocated to participating securities	​	(178)	​	​	(132)	​
Income (loss) attributable to common stock	$	5,655	​	$	(9,928)	​
​	​	​	​	​	​	​
Divided by:		​	​		​	​
Weighted average common stock and participating securities outstanding		34,711	​		34,474	​
Less: Weighted average participating securities	​	(735)	​	​	(542)	​
Total weighted average common stock outstanding	​	33,976	​	​	33,932	​
​	​	​	​	​	​	​
Basic earnings (loss) per common share	$	0.17	​	$	(0.29)	​
Diluted earnings (loss) per common share^(1)^	$	0.17	​	$	(0.29)	​
Dividend Payout ratio		129.4	%		not meaningful	​

​

^^^(1)^There were no common stock equivalents outstanding during the periods presented.

​

​

4.     Securities

​

The following tables summarize the Company’s portfolio of securities held-to-maturity at:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Allowance		​	Net		​	Gross		​	Gross		​	​	​
​	​	Amortized		​	for		​	Carrying		​	Unrecognized		​	Unrecognized		​	​	​
March 31, 2026	​ ​ ​  ​	Cost		​ ​ ​  ​	Credit Losses		​ ​ ​  ​	Amount		​ ​ ​  ​	Gains		​ ​ ​  ​	Losses		​ ​ ​  ​	Fair Value
​	​	(In thousands)
Municipals	​	$	42,379	​	$	(338)	​	$	42,041	​	$	—	​	$	(4,032)	​	$	38,009
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
FNMA	​		7,812	​		—	​		7,812	​		—	​		(609)	​		7,203
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	50,191	​	$	(338)	​	$	49,853	​	$	—	​	$	(4,641)	​	$	45,212

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Allowance		​	Net		​	Gross		​	Gross		​	​	​
​	​	Amortized		​	for		​	Carrying		​	Unrecognized		​	Unrecognized		​	​	​
December 31, 2025	​ ​ ​  ​	Cost		​ ​ ​  ​	Credit Losses		​ ​ ​  ​	Amount		​ ​ ​  ​	Gains		​ ​ ​  ​	Losses		​ ​ ​  ​	Fair Value
​	​	(In thousands)
Municipals	​	$	42,711	​	$	(348)	​	$	42,363	​	$	—	​	$	(3,342)	​	$	39,021
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
FNMA	​		7,817	​		—	​		7,817	​		—	​		(606)	​		7,211
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total	​	$	50,528	​	$	(348)	​	$	50,180	​	$	—	​	$	(3,948)	​	$	46,232

​

​

​ -8-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables summarize the Company’s portfolio of securities available for sale on:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Allowance	​	Gross		​	Gross		​	​	​
​	​	Amortized		​	​	for	​	Unrealized		​	Unrealized		​	​	​
March 31, 2026	​ ​ ​	Cost		​ ​ ​	Credit Losses		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Fair Value
​	​	(In thousands)
U.S. government agencies	​	$	5,664	​	$	—	​	$	29	​	$	(22)	​	$	5,671
Municipals	​	​	20,627	​	​	(2,774)	​	​	—	​	​	(239)	​	​	17,614
Corporate	​	​	248,131	​	​	—	​	​	2,655	​	​	(3,145)	​	​	247,641
Mutual funds	​		12,669	​		—	​		—	​		—	​		12,669
Collateralized loan obligations	​		256,434	​		—	​		7	​		(350)	​		256,091
Other	​		1,653	​		—	​		—	​		—	​		1,653
Total other securities	​		545,178	​		(2,774)	​		2,691	​		(3,756)	​		541,339
REMIC and CMO	​		843,561	​		—	​		3,258	​		(4,489)	​		842,330
GNMA	​		106,287	​		—	​		115	​		(790)	​		105,612
FNMA	​		63,343	​		—	​		243	​		(120)	​		63,466
FHLMC	​		75,097	​		—	​		810	​		(67)	​		75,840
Total mortgage-backed securities	​		1,088,288	​		—	​		4,426	​		(5,466)	​		1,087,248
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Securities available for sale	​	$	1,633,466	​	$	(2,774)	​	$	7,117	​	$	(9,222)	​	$	1,628,587

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Allowance	​	Gross		​	Gross		​	​	​
​	​	Amortized		​	​	for	​	Unrealized		​	Unrealized		​	​	​
December 31, 2025	​ ​ ​	Cost		​ ​ ​	Credit Losses		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Fair Value
​	​	(In thousands)
U.S. government agencies	​	$	6,262	​	$	—	​	$	31	​	$	(29)	​	$	6,264
Municipals	​	​	20,627	​	​	(2,921)	​	​	—	​	​	(445)	​	​	17,261
Corporate	​	​	241,091	​	​	—	​	​	2,674	​	​	(2,734)	​	​	241,031
Mutual funds	​		12,650	​		—	​		—	​		—	​		12,650
Collateralized loan obligations	​		289,349	​		—	​		168	​		(288)	​		289,229
Other	​		1,551	​		—	​		—	​		—	​		1,551
Total other securities	​		571,530	​		(2,921)	​		2,873	​		(3,496)	​		567,986
REMIC and CMO	​		611,292	​		—	​		3,830	​		(217)	​		614,905
GNMA	​		60,116	​		—	​		247	​		—	​		60,363
FNMA	​		65,446	​		—	​		669	​		—	​		66,115
FHLMC	​		79,235	​		—	​		1,320	​		—	​		80,555
Total mortgage-backed securities	​		816,089	​		—	​		6,066	​		(217)	​		821,938
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total securities available for sale	​	$	1,387,619	​	$	(2,921)	​	$	8,939	​	$	(3,713)	​	$	1,389,924

​

​

Corporate securities held by the Company at March 31, 2026 and December 31, 2025, are issued by U.S. banking institutions. CMOs held by the Company at March 31, 2026 and December 31, 2025, are either fully guaranteed or issued by a government sponsored enterprise.

​

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at March 31, 2026, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

​ -9-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​	​	​	​	​	​	​
​		Amortized		​	​	​
Securities held-to-maturity:	​ ​ ​	Cost		​ ​ ​	Fair Value
​		(In thousands)
Due after ten years	​	$	42,379	​	$	38,009
Total other securities	​	​	42,379	​	​	38,009
Mortgage-backed securities	​	​	7,812	​	​	7,203
Total securities held-to-maturity	​	$	50,191	​	$	45,212

​

​

​

​	​	​	​	​	​	​
​	​	Amortized		​	​	​
Securities available for sale:	​ ​ ​	Cost		​ ​ ​	Fair Value
​	​	(In thousands)
Due in one year or less		$	8,870		$	8,862
Due after one year through five years	​	​	65,464	​	​	64,300
Due after five years through ten years	​	​	228,317	​		228,985
Due after ten years	​	​	229,858	​	​	226,523
Total other securities	​		532,509	​		528,670
Mutual funds	​		12,669	​		12,669
Mortgage-backed securities	​		1,088,288	​		1,087,248
Total securities available for sale	​	$	1,633,466	​	$	1,628,587

​

​

The following tables show the Company’s securities without an allowance for credit losses with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At March 31, 2026
​	​	​	​	Total					​	Less than 12 months					​	12 months or more
​	​	​	​	​	​	​	Unrealized		​	​	​	​	Unrealized		​	​	​	​	Unrealized
​	​ ​ ​	Count	​ ​ ​	Fair Value		​ ​ ​	Losses^^		​ ​ ​	Fair Value		​ ​ ​	Losses^^		​ ​ ​	Fair Value		​ ​ ​	Losses^^
​	​	(Dollars in thousands)
Held-to-maturity securities		​		​	​		​	​		​	​		​	​		​	​		​	​
FNMA		1	​	$	7,203	​	$	(609)	​	$	—	​	$	—	​	$	7,203	​	$	(609)
Total mortgage-backed securities		1	​		7,203	​		(609)	​		—	​		—	​		7,203	​		(609)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total		1	​	$	7,203	​	$	(609)	​	$	—	​	$	—	​	$	7,203	​	$	(609)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Available for sale securities		​	​		​	​		​	​		​	​		​	​		​	​		​
U.S. government agencies		3	​	$	3,395	​	$	(22)	​	$	—	​	$	—	​	$	3,395	​	$	(22)
Corporate		18	​		139,438	​		(3,145)	​		48,129	​		(241)	​		91,309	​		(2,904)
Collateralized loan obligations		15	​		210,684	​		(350)	​		210,684	​		(350)	​		—	​		—
Total other securities		36	​		353,517	​		(3,517)	​		258,813	​		(591)	​		94,704	​		(2,926)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
REMIC and CMO		23	​		359,015	​		(4,489)	​		353,494	​		(4,394)	​		5,521	​		(95)
GNMA	​	5	​	​	88,408	​	​	(790)	​	​	88,408	​	​	(790)	​	​	—	​	​	—
FNMA	​	2	​	​	22,367	​	​	(120)	​	​	22,367	​	​	(120)	​	​	—	​	​	—
FHLMC	​	2	​	​	10,048	​	​	(67)	​	​	10,048	​	​	(67)	​	​	—	​	​	—
Total mortgage-backed securities		32	​		479,838	​		(5,466)	​		474,317	​		(5,371)	​		5,521	​		(95)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total		68	​	$	833,355	​	$	(8,983)	​	$	733,130	​	$	(5,962)	​	$	100,225	​	$	(3,021)

​

​

​

​

​ -10-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2025
​	​	​	​	Total					​	Less than 12 months					​	12 months or more
​	​	​	​	​	​	​	Unrealized		​	​	​	​	Unrealized		​	​	​	​	Unrealized
​	​ ​ ​	Count	​ ​ ​	Fair Value		​ ​ ​	Losses		​ ​ ​	Fair Value		​ ​ ​	Losses		​ ​ ​	Fair Value		​ ​ ​	Losses
​	​	(Dollars in thousands)
Held-to-maturity securities		​		​	​		​	​		​	​		​	​		​	​		​	​
FNMA		1	​	$	7,211	​	$	(606)	​	$	—	​	$	—	​	$	7,211	​	$	(606)
Total mortgage-backed securities		1	​		7,211	​		(606)	​		—	​		—	​		7,211	​		(606)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total		1	​	$	7,211	​	$	(606)	​	$	—	​	$	—	​	$	7,211	​	$	(606)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Available for sale securities		​	​		​	​		​	​		​	​		​	​		​	​		​
U.S. government agencies		3	​	$	3,819	​	$	(29)	​	$	1,159	​	$	(7)	​	$	2,660	​	$	(22)
Corporate		17	​		118,976	​		(2,734)	​		27,310	​		(190)	​		91,666	​		(2,544)
Collateralized loan obligations		13	​		164,174	​		(288)	​		144,154	​		(281)	​		20,020	​		(7)
Total other securities		33	​		286,969	​		(3,051)	​		172,623	​		(478)	​		114,346	​		(2,573)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
REMIC and CMO		7	​		43,674	​		(217)	​		28,296	​		(105)	​		15,378	​		(112)
Total mortgage-backed securities		7	​		43,674	​		(217)	​		28,296	​		(105)	​		15,378	​		(112)
Total		40	​	$	330,643	​	$	(3,268)	​	$	200,919	​	$	(583)	​	$	129,724	​	$	(2,685)

​

The Company reviewed all available for sale securities that had an unrealized loss at March 31, 2026 and December 31, 2025. Upon this review management determined one municipal security indicated that a credit loss existed at March 31, 2026 and December 31, 2025, resulting in an allowance for credit losses being recorded. At March 31, 2026, this security was non-accrual with an amortized cost of $20.6 million, an allowance for credit losses of $2.8 million and a fair value of $17.6 million. At December 31, 2025, this security was non-accrual with an amortized cost of $20.6 million, an allowance for credit losses of $2.9 million and a fair value of $17.3 million.

​

All but one of the remaining securities held on March 31, 2026 and December 31, 2025, are either rated investment grade or better, and all these securities have a long history of no credit losses. The Bank holds approximately $10 million of corporate debt from a New York based bank holding company that at March 31, 2026 and December 31, 2025 was rated B1. We do not consider the decline in fair value to be credit related given the underlying bond has not missed any payments and financial performance has not deteriorated to a level where the institution is not well capitalized. The Bank has placed the security on the watch list and will continue to monitor this risk position closely to determine if any action steps and valuation adjustments are required in the future. It is not anticipated that this security or any other available for sale security held at March 31, 2026 and December 31, 2025 would be settled at a price that is less than the amortized cost of the Company’s investment, other than the one municipal security discussed above.

​

The Company does not have the intent to sell these securities, and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. If the Company identifies any decline in the fair value due to credit loss factors and an evaluation indicates that a credit loss exists, then the present value of cash flows that is expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis.

​

In determining the risk of loss for available for sale securities, the Company considered that mortgage-backed securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government, and that issuers of the collateralized loan obligations (“CLO”) and the issuer of corporate securities are global systematically important banks. Each of these securities is performing according to its terms -11-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

and, in the opinion of management, will continue to perform according to its terms. Based on this review, management believes that the unrealized losses have resulted from other factors not deemed credit-related and no allowance for credit loss was recorded.

The Company reviewed each held-to-maturity security as part of its quarterly Current Expected Credit Loss (“CECL”) process, resulting in an allowance for credit losses of $0.3 million at both March 31, 2026 and December 31, 2025.

It is the Company’s policy to exclude accrued interest receivable from the calculation of the allowance for credit losses on held-to-maturity and the valuation of available for sale securities. Accrued interest receivable on held-to-maturity securities totaled $0.1 million at both March 31, 2026 and December 31, 2025 and accrued interest receivable on available for sale debt securities totaled $10.4 million and $8.3 million at March 31, 2026 and December 31, 2025, respectively.

The following table presents the activity in the allowance for credit losses for debt securities available for sale:

​

​	​	​	​	​	​
​	For the three months ended March 31,
​	2026		​	2025
​	(In thousands)
Beginning balance	$	2,921	​	$	2,627
Provision (benefit)	​	(147)	​	​	—
Allowance for credit losses	$	2,774	​	$	2,627

​

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity:

​

​	​	​	​	​	​
​	For the three months ended March 31,
​	2026		​	2025
​	(In thousands)
Beginning balance	$	348	​	$	353
Provision (benefit)		(10)	​	​	6
Allowance for credit losses	$	338	​	$	359

​

​

​

​

​

​

​ -12-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

5.     Loans

The following represents the composition of loans as of the dates indicated:

​

​	​	​	​	​	​	​
​	​	March 31,		​	December 31,
​	​	2026		​ ​ ​	2025
​	​	(In thousands)
Multi-family residential	​	$	2,387,794	​	$	2,382,828
Commercial real estate	​		1,932,186	​		1,993,018
One-to-four family ― mixed-use property	​		466,734	​		476,423
One-to-four family ― residential	​		297,735	​		319,353
Construction	​		40,614	​		54,821
Small Business Administration	​		21,972	​		17,523
Commercial business and other	​		1,401,627	​		1,395,853
Net unamortized premiums and unearned loan fees	​		12,516	​		12,488
Total loans, net of fees and costs excluding portfolio layer basis adjustments	​	​	6,561,178	​	​	6,652,307
Unallocated portfolio layer basis adjustments ^(1)^	​	​	352	​	​	1,645
Total loans, net of fees and costs	​	$	6,561,530	​	$	6,653,952

(1) This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be **** allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

​

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans, certain market value adjustments related to hedging and unamortized premiums or discounts on purchased loans. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on an accrual basis. Accrued interest receivable totaled $45.6 million and $46.4 million at March 31, 2026 and December 31, 2025, respectively, and was included in “Interest and dividends receivable” on the Consolidated Statements of Financial Condition. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

Allowance for credit losses

The allowance for credit losses (“ACL”) is an estimate that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. Loans are charged off against the ACL when management believes that a loan balance is uncollectable based on quarterly analysis of credit risk.

The amount of the ACL is based upon a loss rate model that considers multiple factors which reflects management’s assessment of the credit quality of the loan portfolio. Management estimates the ACL balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses, economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans. -13-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company recorded a provision for credit losses on loans totaling $2.2 million and $4.3 million for the three months ended March 31, 2026 and 2025, respectively. The provision recorded during the three months ended March 31, 2026 was primarily driven by increased reserves applied to two Business Banking loans and one Real Estate loan. The ACL - loans totaled $44.5 million on March 31, 2026 compared to $42.8 million on December 31, 2025. On March 31, 2026, the ACL - loans represented 0.68% of gross loans and 87.9% of non-performing loans. On December 31, 2025, the ACL - loans represented 0.64% of gross loans and 103.0% of non-performing loans.

​

The Company may modify loans to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. When modifying a loan, an assessment of whether a borrower is experiencing financial difficulty is made on the date of modification. This modification may include reducing the loan interest rate, extending the loan term, any other-than-insignificant payment delay, principal forgiveness or any combination of these types of modifications. When such modifications are performed, a change to the allowance for credit losses is generally not required as the methodologies used to estimate the allowance already capture the effect of borrowers experiencing financial difficulty. On March 31, 2026, there were no commitments to lend additional funds to borrowers who have received a loan modification due to financial difficulty.

The following table shows loan modifications made to borrowers experiencing financial difficulty by type of modification granted during the period indicated:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended March 31, 2026
(Dollars in thousands)	​	Combination - Rate Reduction and Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	​	Number	​	​	Amortized Cost Basis	​	% of Total Class of Financing Receivable	​ ​ ​	​	Financial Effect
Multi-family residential	​	1	​	$	2,586	​	0.1	%	​	Borrower to make interest only payment through August 2026 (4 months) and rate reduced to 5.00% from 6.20%
Total	​	1	​	$	2,586	​	​		​	​

​

​

​

The following table shows the payment status at March 31, 2026, of borrowers experiencing financial difficulty for which a modification was granted within the last 12 months:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Payment Status of Borrowers Experiencing Financial Difficulty (Amortized Cost Basis)
(In thousands)	​	Current		​	30-89 Days Past Due		​	90+ Days Past Due		​ ​ ​	Total Modified
March 31, 2026	​	​	​	​	​	​	​	​	​	​	​	​
Multi-family residential	​	$	21,838	​	$	—	​	$	—	​	$	21,838
Commercial real estate	​	​	8,400	​	​	—	​	​	—	​	​	8,400
Commercial business and other	​	​	2,727	​	​	—	​	​	—	​	​	2,727
Total	​	$	32,965	​	$	—	​	$	—	​	$	32,965

​ -14-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show our non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing for the periods shown below:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At or for the three months ended March 31, 2026
(In thousands)	​	​	Non-accrual amortized cost beginning of the reporting period	​	​	Non-accrual amortized cost end of the reporting period	​	​	Non-accrual with no related allowance	​	​	Interest income recognized	​	​	Loans ninety days or more past due and still accruing
Multi-family residential	​	$	11,558	​	$	14,312	​	$	11,396	​	$	—	​	$	—
Commercial real estate	​	​	22,344	​	​	18,705	​	​	1,475	​	​	8	​	​	—
One-to-four family - mixed-use property	​	​	237	​	​	—	​	​	—	​	​	25	​	​	—
One-to-four family - residential	​	​	1,224	​	​	1,074	​	​	1,074	​	​	20	​	​	—
Small Business Administration	​	​	558	​	​	1,074	​	​	1,074	​	​	—	​	​	—
Commercial business and other	​	​	7,621	​	​	17,138	​	​	11,328	​	​	11	​	​	—
Total	​	$	43,542	​	$	52,303	​	$	26,347	​	$	64	​	$	—

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At or for the year ended December 31, 2025
(In thousands)	​	​	Non-accrual amortized cost beginning of the reporting period	​	​	Non-accrual amortized cost end of the reporting period	​	​	Non-accrual with no related allowance	​	​	Interest income recognized	​	​	Loans ninety days or more past due and still accruing
Multi-family residential	​	$	11,707	​	$	11,558	​	$	8,642	​	$	53	​	$	—
Commercial real estate	​	​	6,376	​	​	22,344	​	​	5,115	​	​	20	​	​	—
One-to-four family - mixed-use property	​	​	117	​	​	237	​	​	237	​	​	6	​	​	—
One-to-four family - residential	​	​	812	​	​	1,224	​	​	1,224	​	​	3	​	​	—
Small Business Administration	​	​	2,531	​	​	558	​	​	558	​	​	366	​	​	—
Commercial business and other	​	​	12,454	​	​	7,621	​	​	4,188	​	​	145	​	​	—
Total	​	$	33,997	​	$	43,542	​	$	19,964	​	$	593	​	$	—

​

​

​

​

​

​

​

​ -15-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following is a summary of interest foregone on non-accrual loans for the periods indicated.

​

​	​	​	​	​	​	​	​
​	​	For the three months ended					​
​	​	March 31,					​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
​	​	​	​	​	​	​	​
(In thousands)	​	​	​	​	​	​	​
Interest income that would have been recognized had the loans performed in accordance with their original terms	​	$	1,028	​	$	820	​
Less: Interest income included in the results of operations	​		(64)	​		(25)	​
Total foregone interest	​	$	964	​	$	795	​

​

​

The following tables show the aging analysis of the amortized cost basis of loans at the period indicated by class of loans: ​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At March 31, 2026
(In thousands)	​ ​ ​	30 - 59 Days Past Due		​ ​ ​	60 - 89 Days Past Due		​ ​ ​	Greater than 90 Days		​ ​ ​	Total Past Due		​ ​ ​	Current		​ ​ ​	Total Loans ^(1)^
Multi-family residential	​	$	2,533	​	$	2,747	​	$	14,312	​	$	19,592	​	$	2,373,309	​	$	2,392,901
Commercial real estate	​		162	​		1,983	​		18,705	​		20,850	​		1,913,111	​		1,933,961
One-to-four family - mixed-use property	​		469	​		110	​		—	​		579	​		468,324	​		468,903
One-to-four family - residential	​		503	​		1,577	​		1,074	​		3,154	​		295,500	​		298,654
Construction	​		—	​		—	​		—	​		—	​		40,477	​		40,477
Small Business Administration	​		25	​		7	​		1,074	​		1,106	​		21,094	​		22,200
Commercial business and other	​		2,088	​		5,332	​		16,566	​		23,986	​		1,380,096	​		1,404,082
Total	​	$	5,780	​	$	11,756	​	$	51,731	​	$	69,267	​	$	6,491,911	​	$	6,561,178

.

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2025
(In thousands)	​ ​ ​	30 - 59 Days Past Due		​ ​ ​	60 - 89 Days Past Due		​ ​ ​	Greater than 90 Days		​ ​ ​	Total Past Due		​ ​ ​	Current		​ ​ ​	Total Loans ^(1)^
Multi-family residential	​	$	3,914	​	$	1,165	​	$	11,558	​	$	16,637	​	$	2,371,513	​	$	2,388,150
Commercial real estate	​		2,785	​		—	​		22,344	​		25,129	​		1,970,023	​		1,995,152
One-to-four family - mixed-use property	​		263	​		—	​		237	​		500	​		478,310	​		478,810
One-to-four family - residential	​		2,264	​		53	​		1,224	​		3,541	​		316,744	​		320,285
Construction	​		—	​		—	​		—	​		—	​		54,748	​		54,748
Small Business Administration	​		160	​		—	​		558	​		718	​		17,029	​		17,747
Commercial business and other	​		7,874	​		1	​		7,050	​		14,925	​		1,382,490	​		1,397,415
Total	​	$	17,260	​	$	1,219	​	$	42,971	​	$	61,450	​	$	6,590,857	​	$	6,652,307

​

(1) The tables above exclude the unallocated portfolio layer basis adjustments totaling $0.4 million and $1.6 million related to loans hedged in a closed pool at March 31, 2026 and December 31, 2025, respectively. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

​

​

​ -16-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the activity in the ACL on loans for the three-month periods ended:

​

​

​

​

​

​

​

​

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31, 2026
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	One-to-four		​ ​ ​	One-to-four		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Commercial		​ ​ ​	​	​
​	​	Multi-family		​	Commercial		​	family - mixed-		​	family -		​	Construction		​	Small Business		​	business and		​	​	​
(In thousands)	​	residential		​	real estate		​	use property		​	residential		​	loans		​	Administration		​	other		​	Total
Beginning balance	​	$	12,601	​	$	13,559	​	$	1,236	​	$	875	​	$	171	​	$	1,881	​	$	12,479	​	$	42,802
Charge-offs	​		(173)	​	​	(616)	​	​	—	​	​	(147)	​	​	—	​	​	—	​	​	(116)	​	​	(1,052)
Recoveries	​		1	​		—	​		—	​		—	​		—	​		—	​	​	531	​	​	532
Provision (benefit)	​		683	​		399	​		3	​		101	​		(43)	​		283	​	​	742	​	​	2,168
Ending balance	​	$	13,112	​	$	13,342	​	$	1,239	​	$	829	​	$	128	​	$	2,164	​	$	13,636	​	$	44,450

​

​

​

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31, 2025
​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	One-to-four		​ ​ ​	One-to-four		​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	Commercial		​ ​ ​	​	​
​	​	Multi-family		​	Commercial		​	family - mixed-		​	family -		​	Construction		​	Small Business		​	business and		​	​	​
(In thousands)	​	residential		​	real estate		​	use property		​	residential		​	loans		​	Administration		​	other		​	Total
Beginning balance	​	$	13,145	​	$	9,288	​	$	1,623	​	$	759	​	$	371	​	$	1,523	​	$	13,443	​	$	40,152
Charge-offs	​		—	​	​	—	​	​	—	​	​	(5)	​	​	—	​	​	—	​	​	(4,466)	​	​	(4,471)
Recoveries	​		—	​		—	​		—	​		1	​		—	​		40	​	​	3	​	​	44
Provision (benefit)	​		(573)	​		3,694	​		79	​		164	​		(171)	​		(362)	​	​	1,481	​	​	4,312
Ending balance	​	$	12,572	​	$	12,982	​	$	1,702	​	$	919	​	$	200	​	$	1,201	​	$	10,461	​	$	40,037

​

​

​

​

​

​

​

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans.” If a loan does not fall within one of the previously mentioned categories and management believes weakness is evident then we designate the loan as “Watch;” all other loans would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize the orderly liquidation of the debt. We designate a loan as Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does not hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Credit Losses. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications but does contain a potential weakness that deserves closer attention.

​ -17-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables summarize the various risk categories of mortgage and non-mortgage loans by loan portfolio segments and by class of loans by year of origination at the periods indicated below:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31, 2026
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Revolving Loans	​	​	Revolving Loans	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Amortized Cost	​	​	converted to	​	​	​
(In thousands)	​	​	2026	​	​	2025	​	​	2024	​	​	2023	​	​	2022	​	​	Prior	​	​	Basis	​	​	term loans	​	​	Total
Multi-family Residential	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	56,064	​	$	70,336	​	$	106,997	​	$	221,408	​	$	399,077	​	$	1,460,215	​	$	3,707	​	$	—	​	$	2,317,804
Watch	​	​	—	​	​	—	​	​	921	​	​	—	​	​	3,702	​	​	30,503	​	​	—	​	​	—	​	​	35,126
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	24,880	​	​	—	​	​	—	​	​	24,880
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	806	​	​	14,285	​	​	—	​	​	—	​	​	15,091
Total Multi-family Residential	​	$	56,064	​	$	70,336	​	$	107,918	​	$	221,408	​	$	403,585	​	$	1,529,883	​	$	3,707	​	$	—	​	$	2,392,901
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	173	​	$	—	​	$	—	​	$	173
Commercial Real Estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	23,463	​	$	231,302	​	$	190,142	​	$	187,132	​	$	281,012	​	$	958,781	​	$	—	​	$	—	​	$	1,871,832
Watch	​	​	—	​	​	—	​	​	—	​	​	3,552	​	​	3,797	​	​	25,692	​	​	—	​	​	—	​	​	33,041
Special Mention	​	​	—	​	​	8,400	​	​	1,983	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	10,383
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	18,705	​	​	—	​	​	—	​	​	18,705
Total Commercial Real Estate	​	$	23,463	​	$	239,702	​	$	192,125	​	$	190,684	​	$	284,809	​	$	1,003,178	​	$	—	​	$	—	​	$	1,933,961
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	616	​	$	—	​	$	—	​	$	616
1-4 Family Mixed-Use Property	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	5,754	​	$	16,816	​	$	17,002	​	$	20,044	​	$	41,787	​	$	360,877	​	$	—	​	$	—	​	$	462,280
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	5,953	​	​	—	​	​	—	​	​	5,953
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	369	​	​	—	​	​	—	​	​	369
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	301	​	​	—	​	​	—	​	​	301
Total 1-4 Family Mixed-Use Property	​	$	5,754	​	$	16,816	​	$	17,002	​	$	20,044	​	$	41,787	​	$	367,500	​	$	—	​	$	—	​	$	468,903
1-4 Family Residential	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	—	​	$	2,227	​	$	12,209	​	$	92,061	​	$	50,764	​	$	121,233	​	$	5,756	​	$	7,296	​	$	291,546
Watch	​	​	—	​	​	—	​	​	—	​	​	846	​	​	480	​	​	835	​	​	—	​	​	1,338	​	​	3,499
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	2,335	​	​	—	​	​	200	​	​	2,535
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	846	​	​	—	​	​	228	​	​	1,074
Total 1-4 Family Residential	​	$	—	​	$	2,227	​	$	12,209	​	$	92,907	​	$	51,244	​	$	125,249	​	$	5,756	​	$	9,062	​	$	298,654
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	147	​	$	147
Construction	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	—	​	$	2,287	​	$	—	​	$	—	​	$	—	​	$	—	​	$	38,190	​	$	—	​	$	40,477
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—
Total Construction	​	$	—	​	$	2,287	​	$	—	​	$	—	​	$	—	​	$	—	​	$	38,190	​	$	—	​	$	40,477
Small Business Administration	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	3,942	​	$	8,527	​	$	1,583	​	$	1,113	​	$	3,114	​	$	2,663	​	$	—	​	$	—	​	$	20,942
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	152	​	​	—	​	​	—	​	​	152
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	25	​	​	—	​	​	—	​	​	25
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	1,081	​	​	—	​	​	—	​	​	1,081
Total Small Business Administration	​	$	3,942	​	$	8,527	​	$	1,583	​	$	1,113	​	$	3,114	​	$	3,921	​	$	—	​	$	—	​	$	22,200
Commercial Business	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	32,293	​	$	108,460	​	$	60,213	​	$	63,593	​	$	52,459	​	$	93,413	​	$	177,027	​	$	—	​	$	587,458
Watch	​	​	—	​	​	69	​	​	1,712	​	​	—	​	​	77	​	​	2,590	​	​	2,704	​	​	—	​	​	7,152
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	1,081	​	​	—	​	​	1,081
Substandard	​	​	—	​	​	572	​	​	1,760	​	​	242	​	​	2,155	​	​	3,973	​	​	3,356	​	​	—	​	​	12,058
Doubtful	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—
Total Commercial Business	​	$	32,293	​	$	109,101	​	$	63,685	​	$	63,835	​	$	54,691	​	$	99,976	​	$	184,168	​	$	—	​	$	607,749
Gross charge-offs	​	$	—	​	$	100	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	100
Commercial Business - Secured by RE	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	14,240	​	$	100,545	​	$	67,550	​	$	53,938	​	$	158,956	​	$	358,366	​	$	—	​	$	—	​	$	753,595
Watch	​	​	—	​	​	—	​	​	8,509	​	​	—	​	​	—	​	​	19,100	​	​	—	​	​	—	​	​	27,609
Special Mention	​	​	—	​	​	4,999	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	4,999
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	9,967	​	​	—	​	​	—	​	​	9,967
Total Commercial Business - Secured by RE	​	$	14,240	​	$	105,544	​	$	76,059	​	$	53,938	​	$	158,956	​	$	387,433	​	$	—	​	$	—	​	$	796,170
Other	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	85	​	$	78	​	$	—	​	$	163
Total Other	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	85	​	$	78	​	$	—	​	$	163
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	16	​	$	—	​	$	—	​	$	16
Total by Loan Type	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Pass	​	$	135,756	​	$	540,500	​	$	455,696	​	$	639,289	​	$	987,169	​	$	3,355,633	​	$	224,758	​	$	7,296	​	$	6,346,097
Total Watch	​	​	—	​	​	69	​	​	11,142	​	​	4,398	​	​	8,056	​	​	84,825	​	​	2,704	​	​	1,338	​	​	112,532
Total Special Mention	​	​	—	​	​	13,399	​	​	1,983	​	​	—	​	​	—	​	​	27,609	​	​	1,081	​	​	200	​	​	44,272
Total Substandard	​	​	—	​	​	572	​	​	1,760	​	​	242	​	​	2,961	​	​	49,158	​	​	3,356	​	​	228	​	​	58,277
Total Loans ^(1)^	​	$	135,756	​	$	554,540	​	$	470,581	​	$	643,929	​	$	998,186	​	$	3,517,225	​	$	231,899	​	$	9,062	​	$	6,561,178
Total Gross charge-offs	​	$	—	​	$	100	​	$	—	​	$	—	​	$	—	​	$	805	​	$	—	​	$	147	​	$	1,052

​

​

​

​ -18-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	December 31, 2025
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Revolving Loans	​	​	Revolving Loans	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	Amortized Cost	​	​	converted to	​	​	​
(In thousands)	​	​	2025	​	​	2024	​	​	2023	​	​	2022	​	​	2021	​	​	Prior	​	​	Basis	​	​	term loans	​	​	Total
Multi-family Residential	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	70,542	​	$	107,310	​	$	226,950	​	$	401,808	​	$	262,801	​	$	1,237,130	​	$	3,489	​	$	—	​	$	2,310,030
Watch	​	​	—	​	​	924	​	​	900	​	​	3,727	​	​	3,296	​	​	36,154	​	​	—	​	​	—	​	​	45,001
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	20,752	​	​	—	​	​	—	​	​	20,752
Substandard	​	​	—	​	​	—	​	​	—	​	​	810	​	​	—	​	​	11,557	​	​	—	​	​	—	​	​	12,367
Total Multi-family Residential	​	$	70,542	​	$	108,234	​	$	227,850	​	$	406,345	​	$	266,097	​	$	1,305,593	​	$	3,489	​	$	—	​	$	2,388,150
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	1,681	​	$	—	​	$	1,254	​	$	—	​	$	—	​	$	2,935
Commercial Real Estate	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	231,927	​	$	190,608	​	$	187,887	​	$	285,929	​	$	129,592	​	$	858,072	​	$	—	​	$	—	​	$	1,884,015
Watch	​	​	—	​	​	1,978	​	​	3,697	​	​	4,211	​	​	9,027	​	​	61,480	​	​	—	​	​	—	​	​	80,393
Special Mention	​	​	8,400	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	8,400
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	22,344	​	​	—	​	​	—	​	​	22,344
Total Commercial Real Estate	​	$	240,327	​	$	192,586	​	$	191,584	​	$	290,140	​	$	138,619	​	$	941,896	​	$	—	​	$	—	​	$	1,995,152
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	1,347	​	$	—	​	$	—	​	$	1,347
1-4 Family Mixed-Use Property	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	16,863	​	$	17,055	​	$	20,271	​	$	42,216	​	$	36,388	​	$	339,151	​	$	—	​	$	—	​	$	471,944
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	287	​	​	5,757	​	​	—	​	​	—	​	​	6,044
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	263	​	​	—	​	​	—	​	​	263
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	559	​	​	—	​	​	—	​	​	559
Total 1-4 Family Mixed-Use Property	​	$	16,863	​	$	17,055	​	$	20,271	​	$	42,216	​	$	36,675	​	$	345,730	​	$	—	​	$	—	​	$	478,810
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	55	​	$	—	​	$	—	​	$	55
1-4 Family Residential	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	2,573	​	$	15,545	​	$	102,740	​	$	51,485	​	$	6,573	​	$	120,572	​	$	5,755	​	$	7,531	​	$	312,774
Watch	​	​	—	​	​	—	​	​	855	​	​	484	​	​	—	​	​	2,939	​	​	—	​	​	1,502	​	​	5,780
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	450	​	​	—	​	​	57	​	​	507
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	722	​	​	—	​	​	502	​	​	1,224
Total 1-4 Family Residential	​	$	2,573	​	$	15,545	​	$	103,595	​	$	51,969	​	$	6,573	​	$	124,683	​	$	5,755	​	$	9,592	​	$	320,285
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	5	​	$	—	​	$	—	​	$	5
Construction	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	353	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	36,145	​	$	—	​	$	36,498
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	18,250	​	​	—	​	​	—	​	​	—	​	​	18,250
Total Construction	​	$	353	​	$	—	​	$	—	​	$	—	​	$	18,250	​	$	—	​	$	36,145	​	$	—	​	$	54,748
Small Business Administration	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	7,811	​	$	1,619	​	$	1,125	​	$	3,134	​	$	875	​	$	2,283	​	$	—	​	$	—	​	$	16,847
Watch	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	174	​	​	—	​	​	—	​	​	174
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	26	​	​	—	​	​	—	​	​	26
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	1	​	​	699	​	​	—	​	​	—	​	​	700
Total Small Business Administration	​	$	7,811	​	$	1,619	​	$	1,125	​	$	3,134	​	$	876	​	$	3,182	​	$	—	​	$	—	​	$	17,747
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	279	​	$	—	​	$	—	​	$	279
Commercial Business	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	118,366	​	$	61,302	​	$	67,109	​	$	51,852	​	$	19,275	​	$	78,080	​	$	179,583	​	$	—	​	$	575,567
Watch	​	​	72	​	​	2,939	​	​	—	​	​	—	​	​	2,394	​	​	4,335	​	​	2,968	​	​	—	​	​	12,708
Special Mention	​	​	—	​	​	—	​	​	—	​	​	—	​	​	1,487	​	​	2,381	​	​	—	​	​	—	​	​	3,868
Substandard	​	​	572	​	​	639	​	​	267	​	​	2,155	​	​	—	​	​	94	​	​	6,227	​	​	—	​	​	9,954
Total Commercial Business	​	$	119,010	​	$	64,880	​	$	67,376	​	$	54,007	​	$	23,156	​	$	84,890	​	$	188,778	​	$	—	​	$	602,097
Gross charge-offs	​	$	—	​	$	—	​	$	871	​	$	2,621	​	$	—	​	$	3,115	​	$	95	​	$	—	​	$	6,702
Commercial Business - Secured by RE	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	107,989	​	$	67,865	​	$	54,158	​	$	161,875	​	$	105,186	​	$	260,238	​	$	—	​	$	—	​	$	757,311
Watch	​	​	—	​	​	8,543	​	​	—	​	​	—	​	​	8,405	​	​	18,041	​	​	—	​	​	—	​	​	34,989
Substandard	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	​	2,787	​	​	—	​	​	—	​	​	2,787
Total Commercial Business - Secured by RE	​	$	107,989	​	$	76,408	​	$	54,158	​	$	161,875	​	$	113,591	​	$	281,066	​	$	—	​	$	—	​	$	795,087
Other	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Pass	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	147	​	$	84	​	$	—	​	$	231
Total Other	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	147	​	$	84	​	$	—	​	$	231
Gross charge-offs	​	$	—	​	$	—	​	$	—	​	$	—	​	$	—	​	$	80	​	$	—	​	$	—	​	$	80
Total by Loan Type	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Pass	​	$	556,424	​	$	461,304	​	$	660,240	​	$	998,299	​	$	560,690	​	$	2,895,673	​	$	225,056	​	$	7,531	​	$	6,365,217
Total Watch	​	​	72	​	​	14,384	​	​	5,452	​	​	8,422	​	​	41,659	​	​	128,880	​	​	2,968	​	​	1,502	​	​	203,339
Total Special Mention	​	​	8,400	​	​	—	​	​	—	​	​	—	​	​	1,487	​	​	23,872	​	​	—	​	​	57	​	​	33,816
Total Substandard	​	​	572	​	​	639	​	​	267	​	​	2,965	​	​	1	​	​	38,762	​	​	6,227	​	​	502	​	​	49,935
Total Loans ^(1)^	​	$	565,468	​	$	476,327	​	$	665,959	​	$	1,009,686	​	$	603,837	​	$	3,087,187	​	$	234,251	​	$	9,592	​	$	6,652,307
Total Gross charge-offs	​	$	—	​	$	—	​	$	871	​	$	4,302	​	$	—	​	$	6,135	​	$	95	​	$	—	​	$	11,403

^(1)^ **** The tables above exclude the unallocated portfolio layer basis adjustments totaling $0.4 million and $1.6 million related to loans hedged in a closed pool at March 31, 2026 and December 31, 2025, respectively. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

​ -19-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Included within net loans were $1.7 million and $2.1 million at March 31, 2026 and December 31, 2025, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents types of collateral-dependent loans by class of loans as of the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​
​	​	Collateral Type
​	​	March 31, 2026					​	December 31, 2025
(In thousands)	​	​	Real Estate	​	​	Business Assets	​	​	Real Estate	​	​	Business Assets
Multi-family residential	​	$	14,312	​	$	—	​	$	11,558	​	$	—
Commercial real estate	​	​	18,705	​	​	—	​	​	22,344	​	​	—
One-to-four family - mixed-use property	​	​	—	​	​	—	​	​	237	​	​	—
One-to-four family - residential	​	​	1,074	​	​	—	​	​	1,224	​	​	—
Small Business Administration	​	​	—	​	​	1,074	​	​	—	​	​	558
Commercial business and other	​	​	9,966	​	​	7,172	​	​	2,787	​	​	4,834
Total	​	$	44,057	​	$	8,246	​	$	38,150	​	$	5,392

​

Off-Balance Sheet Credit Losses

​

Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”. Commitments “in‐process” reflect loans not in the Company’s books but rather negotiated loan / line of credit terms and rates that the Company has offered to customers and is committed to honoring. In reference to “in‐process” credits, the Company defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable.

​

On March 31, 2026, the Company had commitments to extend credit totaling $402.9 million.

​

The following table presents the activity in the allowance for off-balance sheet credit losses for the three months ended:

​

​	​	​	​	​	​	​
​	​	For the three months ended March 31,
(In thousands)	​	​	2026	​	​	2025
Balance at beginning of period	​	$	1,733	​	$	1,037
Provision (benefit) ^(1)^	​	​	111	​	​	337
Allowance for off-balance sheet - credit losses ^(2)^	​	$	1,844	​	$	1,374

(1) Included in “Other operating expenses” on the Consolidated Statements of Operations.

(2) Included in “Other liabilities” on the Consolidated Statements of Financial Condition.

​

​

​

​ -20-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

6.     Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At March 31, 2026 and December 31, 2025, the Company did not have any loans designated as held for sale.

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually closes in a short period of time, generally within the same quarter. Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale generally includes cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer.

The following tables show loans sold during the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended March 31, 2026
(Dollars in thousands)	​ ​ ​	Loans sold	​ ​ ​	Proceeds		​ ​ ​	Net charge-offs		​ ​ ​	Net gain
Performing loans		​
Small Business Administration		1	​	$	543	​	$	—	​	$	51
Total		1	​	$	543	​	$	—	​	$	51
Delinquent and non-performing loans		​	​		​	​		​	​		​
Multi-family residential	​	2	​	$	1,083	​	$	(173)	​	$	43
Commercial		1	​	​	4,309	​	​	(616)	​	​	—
One-to-four family - mixed-use property		1	​	​	239	​	​	—	​	​	—
Total		4	​	$	5,631	​	$	(789)	​	$	43

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended March 31, 2025
(Dollars in thousands)	​ ​ ​	Loans sold	​ ​ ​	Proceeds		​ ​ ​	Net charge-offs		​ ​ ​	Net gain ^(1)^
Performing loans		​
Multi-family residential		12	​	$	35,388	​	$	—	​	$	—
Commercial		1	​	​	3,274	​	​	—	​	​	—
Small Business Administration		4	​	​	5,804	​	​	—	​	​	434
Total		17	​	$	44,466	​	$	—	​	$	434
Delinquent and non-performing loans		​	​		​	​		​	​		​
Multi-family residential	​	1	​	$	550	​	$	—	​	$	134
Commercial		1	​	​	5,099	​	​	—	​	​	238
One-to-four family - mixed-use property		1	​	​	137	​	​	—	​	​	19
Total		3	​	$	5,786	​	$	—	​	$	391

(1)Does not include $0.2 million net loss on sale recorded to write-down performing mortgage loans to their anticipated sales price.

​

​

​

​

​

​

​

​ -21-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

7.     Leases

The Company has 33 operating leases for branches (including headquarters) and office spaces, and one operating lease for equipment. Our leases have remaining lease terms ranging from seven months to approximately 11 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has one agreement in 2026 and three agreements in 2025 that qualified as short-term leases, respectively.

​

Certain leases have escalation clauses for operating expenses and real estate taxes, which are recorded as variable lease cost. The Company’s non-cancelable operating lease agreements expire through 2036.

​

Supplemental balance sheet information related to leases are as follows:

​

​	​	​	​	​	​	​
​	​	​	​	​	​	​
​	​	​	​	​	​	​
(Dollars in thousands)	​	March 31, 2026		​	December 31, 2025
​	​	​	​	​	​	​
Operating lease ROU assets	​	$	51,016	​	$	53,118
​	​	​	​	​	​	​
Operating lease liabilities	​	$	51,916	​	$	53,842
​	​	​	​	​	​	​
Weighted-average remaining lease term-operating leases	​	​	7.1 years	​	​	7.2 years
Weighted average discount rate-operating leases	​	​	4.4%	​	​	4.4%

​ -22-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The components of lease expense and cash flow information related to leases were as follows:

​

​

​	​	​	​	​	​	​	​	​
​	​	​	​	For the three months ended March 31,
(In thousands)	​	Line Item Presented	​	2026		​	2025
Lease Cost	​	​	​		​	​		​
Operating lease cost	​	Occupancy and equipment	​	$	2,613	​	$	2,319
Operating lease cost	​	Other operating expenses	​	​	—	​	​	5
Short-term lease cost	​	Professional services and other operating expenses	​		44	​		43
Variable lease cost	​	Occupancy and equipment	​		313	​		325
Total lease cost	​	​	​	$	2,970	​	$	2,692
​	​	​	​	​	​	​	​	​
Other information	​	​	​		​	​		​
Cash paid for amounts included in the measurement of lease liabilities:			​	​	​	​		​
Operating cash flows from operating leases	​	​	​	$	2,450	​	$	2,511
Supplemental disclosure of non-cash activities:			​	​	​	​	​	​
Right-of-use assets obtained in exchange for new operating lease liabilities			​	$	—	​	$	—

​

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of March 31, 2026:

​

​

​	​	​	​
​	​	Minimum Rental
​	​	(In thousands)
Years ended December 31:	​	​	​
Remainder of 2026	​	$	6,721
2027	​	​	10,023
2028	​	​	9,895
2029	​	​	8,699
2030	​	​	5,327
Thereafter	​	​	20,538
Total minimum payments required	​	​	61,203
Less: implied interest	​	​	(9,287)
Total lease obligations	​	$	51,916

​

​

​

​

8**. Stock-Based Compensation**

On May 29, 2024, stockholders approved the Company’s 2024 Omnibus Incentive Plan (the “2024 Plan”) to replace the 2014 Omnibus Incentive Plan (the “2014 Plan”). The 2024 Plan is an “omnibus” stock plan that provides for a variety of equity award vehicles to maintain flexibility. The 2024 Plan, like the 2014 Plan, permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), and other stock-based awards. Currently, awards to employees primarily consist of RSUs and PRSUs and to Company directors of RSUs. The 2024 Plan authorizes the issuance of up to 637,949 shares. Although no further awards may be granted under the 2014 Plan, outstanding awards granted prior to February 28, 2024, will continue in accordance with their terms.

The Company has a long-term incentive compensation program for certain Company executive officers that includes grants of PRSUs in addition to time-based RSUs. Under the terms of the PRSU Agreement, the number of PRSUs that may be earned depends on the extent to which performance goals for the award are achieved over a three-year performance period, as determined by the Compensation Committee of the Board. The number of PRSUs that may be earned ranges from 0% to 150% of the target award, with no PRSUs earned for below threshold-level performance, 50% of PRSUs earned for threshold-level performance, 100% of PRSUs earned for target-level performance, and 150% of PRSUs earned -23-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

for maximum-level performance. As of March 31, 2026, PRSUs granted in 2026, 2025 and 2024 are being accrued at target. The levels of accrual are commensurate with the projected performance of the respective grant.

For the three months ended March 31, 2026 and 2025, the Company’s net income, as reported, included $1.8 million and $0.5 million, respectively, of stock-based compensation costs, as recorded in salaries and employee benefits on the Consolidated Statements of Operations, including the benefit or expense of phantom stock awards, and $0.5 million and $0.2 million, respectively, of income tax benefits related to the stock-based compensation plans.

​

During the three months ended March 31, 2026 and 2025 the Company granted 282,550 and 228,501 RSU awards and 77,550 and 71,700 PRSU awards, respectively. As of March 31, 2026, 290,751 shares were available for future issuance under the 2024 Omnibus Plan.

​

The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit awards and performance restricted stock units. Compensation cost is recognized over the vesting period of the award using the straight-line method. Forfeitures are recorded in the period they occur.

The following table summarizes the Company’s RSU and PRSU awards under the 2024 Omnibus Plan for the three months ended March 31, 2026:

​

​	​	​	​	​	​	​	​	​	​	​
​		RSU Awards				​ ​ ​	PRSU Awards
​	​	​		Weighted-Average		​	​		Weighted-Average
​	​	​		Grant-Date		​	​		Grant-Date
​	​ ​ ​	Shares	​ ​ ​	Fair Value		​ ​ ​	Shares	​ ​ ​	Fair Value
Non-vested awards at December 31, 2025		401,535	​	$	16.68		139,050	​	$	15.65
Granted		282,550	​		15.54		77,550	​		15.54
Added (reduced) shares due to performance factor		—	​		—		—	​		—
Vested		(84,044)	​		17.95		—	​		—
Forfeited		(5,600)	​		15.63		—	​		—
Non-vested awards at March 31, 2026		594,441	​	$	15.97		216,600	​	$	15.61
Vested but unissued at March 31, 2026		106,998	​	$	18.91		—	​	$	—

​

As of March 31, 2026, there was $8.4 million of total unrecognized compensation cost related to RSU and PRSU awards granted. That cost is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of awards vested for the three months ended March 31, 2026 and 2025, was $0.7 million and $1.1 million, respectively. The vested but unissued RSU and PRSU awards consist of awards made to employees and directors who are eligible for retirement. According to the terms of these awards, which provide for vesting upon retirement, these employees and directors have no risk of forfeiture. These shares will be issued at the original contractual vesting and settlement dates.

​

Phantom Stock Plan: The Company maintains a non-qualified phantom stock plan as a supplement to its profit-sharing plan for officers who have achieved the designated level and completed one year of service. The Company adjusts its liability under this plan to the fair value of the shares at the end of each period. -24-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the Phantom Stock Plan at or for the three months ended March 31, 2026:

​

​	​	​	​	​	​	​	​	​
Phantom Stock Plan	​ ​ ​	Shares	​ ​ ​	Fair Value		​ ​ ​	Weighted-Average Fair Value
Outstanding at December 31, 2025		215,256	​	$	15.17	​	​	​
Granted		14,760	​	​	​	​	$	15.41
Distributions		(1,910)	​	​	​	​	$	15.74
Outstanding and vested at March 31, 2026		228,106	​	$	15.36	​	​	​

​

The Company recorded stock-based compensation expense (benefit) for the Phantom Stock Plan of $0.1 million and ($0.3) million for the three months ended March 31, 2026 and 2025, respectively. The total fair value of the distributions from the Phantom Stock Plan was $30,000 and $12,000 for the three months ended March 31, 2026 and 2025, respectively.

​

​

9.     Pension and Other Postretirement Benefit Plans

The following table sets forth information regarding the components of net expense for the pension and other postretirement benefit plans.

​

​	​	​	​	​	​	​
​		Three months ended
​		March 31,
(In thousands)	​ ​ ​	2026		​ ​ ​	2025
Employee Pension Plan:		​	​		​	​
Interest cost	​	$	200	​	$	203
Amortization of unrecognized loss	​	​	35	​	​	—
Expected return on plan assets	​		(241)	​		(277)
Net employee pension benefit ^(1)^	​	$	(6)	​	$	(74)
​	​	​	​	​	​	​
Outside Director Pension Plan:	​		​	​		​
Service cost	​	$	3	​	$	2
Interest cost	​		11	​		12
Amortization of unrecognized gain	​		(22)	​		(25)
Net outside director pension (benefit) expense ^(2)^	​	$	(8)	​	$	(11)
​	​	​	​	​	​	​
Other Postretirement Benefit Plans:	​		​	​		​
Service cost	​	$	—	​	$	38
Interest cost	​		—	​		115
Amortization of unrecognized gain	​	​	—	​	​	(48)
Net other postretirement expense ^(1)^	​	$	—	​	$	105

(1) Reported in the Consolidated Statements of Operations as part of salaries and employee benefits.

(2) Reported in the Consolidated Statements of Operations as part of other operating expenses.

​

​ -25-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company previously disclosed in its Consolidated Financial Statements for the year ended December 31, 2025 that it does not expect to contribute to the employee pension plan or the outside director pension plan during the year ending December 31, 2026.

​

During December 2025, the Company modified its Postretirement Plans through the following actions:

Curtailment

The Company approved a restructuring program that resulted in the elimination of future service benefits for all active employees and current retirees. As a result, the Company recognized a curtailment gain of $4.9 million, reflecting the reduction in future benefits.

Special Termination Benefits

The Company approved a restructuring program that provided benefits to certain senior executives in excess of what the plan already provided totaling $4.4 million. These amounts paid to senior executives were contractual obligations. As a result, the Company recognized special termination benefit of $6.7 million, reflecting the additional benefits.

Settlement

As part of the restructuring program, the Company adopted the resolution to terminate the Postretirement Plans effective December 29, 2025 recognizing a settlement gain of $2.3 million. Final distribution totaling $6.1 million was made in the first quarter of 2026.

​

10.     Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with GAAP which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not purchase or sell any financial assets or liabilities carried under the fair value option during the three months ended March 31, 2026 and 2025.

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option, and the changes in fair value included in the Consolidated Statement of Operations – Net (loss) gain from fair value adjustments, at or for the periods ended as indicated:

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Changes in Fair Values For Items Measured at Fair Value
​	​	Fair Value		​	Fair Value		​	Pursuant to Election of the Fair Value Option
​		Measurements at			Measurements at		​	For the three months ended March 31,
Description	​ ​ ​	March 31, 2026		​ ​ ​	December 31, 2025		​ ​ ​	2026		​ ​ ​	2025
(In thousands)		​	​		​	​	​	​	​		​	​
Mortgage-backed securities	​	$	205	​	$	211	​	$	—	​	$	—
Other securities	​		14,322	​		14,201	​		24	​		188
Borrowed funds	​		55,071	​		51,666	​		(3,584)	​		(340)
Net gain (loss) from fair value adjustments	​	​	​	​	​	​	​	$	(3,560)	​	$	(152)

​

​

​ -26-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Included in the fair value of the financial assets and financial liabilities selected for the fair value option is the accrued interest receivable or payable for the related instrument. The Company reports as interest income or interest expense in the Consolidated Statement of Operations, the interest receivable or payable on the financial instruments selected for the fair value option at their respective contractual rates.

The borrowed funds had a contractual principal amount of $61.9 million at both March 31, 2026 and December 31, 2025. The fair value of borrowed funds includes accrued interest payable of $0.3 million at both March 31, 2026 and December 31, 2025.

The Company generally holds its interest-earning assets to maturity and settles its liabilities at maturity. However, fair value estimates are made at a specific point in time and are based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Accordingly, as assumptions change, such as interest rates and prepayments, fair value estimates change, and these amounts may not necessarily be realized in an immediate sale.

Disclosure of fair value does not require fair value information for items that do not meet the definition of a financial instrument or certain other financial instruments specifically excluded from its requirements. These items include core deposit intangibles and other customer relationships, premises and equipment, leases, income taxes and equity.

Further, fair value disclosure does not attempt to value future income or business. These items may be material and accordingly, the fair value information presented does not purport to represent, nor should it be construed to represent, the underlying “market” or franchise value of the Company.

A description of the methods and significant assumptions utilized in estimating the fair value of the Company’s financial assets and liabilities that are carried at fair value on a recurring basis are as follows:

Level 1 – when quoted market prices are available in an active market. At March 31, 2026 and December 31, 2025, Level 1 included one mutual fund.

Level 2 – when quoted market prices are not available, fair value is estimated using quoted market prices for similar financial instruments and adjusted for differences between the quoted instrument and the instrument being valued. Fair value can also be estimated by using pricing models, or discounted cash flows. Pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices and credit spreads. In addition to observable market information, models also incorporate maturity and cash flow assumptions. At March 31, 2026 and December 31, 2025, Level 2 included mortgage-backed securities, CLOs, corporate debt, US government agencies, and derivatives.

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At March 31, 2026 and December 31, 2025, Level 3 included trust preferred securities owned, and junior subordinated debentures issued by the Company, as well as municipal bonds.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies, assumptions, and models to determine fair value of certain financial instruments could produce different estimates of fair value at the reporting date. -27-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, including those reported at fair value under the fair value option, and the level that was used to determine their fair value, at March 31, 2026 and December 31, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quoted Prices					​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	in Active Markets					​	Significant Other					​	Significant Other					​	​	​	​	​	​
​	​	for Identical Assets					​	Observable Inputs					​	Unobservable Inputs					​	Total carried at fair value
​	​	(Level 1)					​	(Level 2)					​	(Level 3)					​	on a recurring basis
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025
Assets:		(In thousands)
Securities available for sale:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Mortgage-backed securities	​	$	—	​	$	—	​	$	1,087,248	​	$	821,938	​	$	—	​	$	—	​	$	1,087,248	​	$	821,938
Other securities	​		12,669	​		12,650	​		509,403	​		536,524	​		19,267	​		18,812	​		541,339	​		567,986
Derivatives	​		—	​		—	​		34,476	​		37,900	​		—	​		—	​		34,476	​		37,900
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total assets	​	$	12,669	​	$	12,650	​	$	1,631,127	​	$	1,396,362	​	$	19,267	​	$	18,812	​	$	1,663,063	​	$	1,427,824
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​
Borrowings	​	$	—	​	$	—	​	$	—	​	$	—	​	$	55,071	​	$	51,666	​	$	55,071	​	$	51,666
Derivatives	​		—	​		—	​		23,112	​		31,714	​		—	​		—	​		23,112	​		31,714
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total liabilities	​	$	—	​	$	—	​	$	23,112	​	$	31,714	​	$	55,071	​	$	51,666	​	$	78,183	​	$	83,380

​

​

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended
​	​	March 31, 2026								​	March 31, 2025
​	​	​		​	Trust preferred		​	Junior subordinated		​	​		​	Trust preferred		​	Junior subordinated
​	​ ​	Municipals		​ ​	securities		​ ​	debentures		​ ​	Municipals		​ ​	securities		​ ​	debentures
(In thousands)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Beginning balance	​	$	17,261	​	$	1,551	​	$	51,666	​	$	18,000	​	$	1,465	​	$	48,795
Net gain (loss) from fair value adjustment of financial assets^(1)^	​		—	​		103	​		—	​		—	​		10	​		—
Net (gain) loss from fair value adjustment of financial liabilities^(1)^	​		—	​		—	​		3,584	​		—	​		—	​		340
Increase (decrease) in accrued interest	​		—	​		(1)	​		(22)	​		—	​		(1)	​		(28)
(Provision) benefit for credit losses	​		147	​		—	​		—	​		—	​		—	​		—
Change in unrealized gains (losses) included in other comprehensive loss-assets	​		206	​		—	​		—	​		—	​		—	​		(4)
Change in unrealized (gains) losses included in other comprehensive loss-liabilities	​		—	​		—	​		(157)	​		—	​		—	​		—
Ending balance	​	$	17,614	​	$	1,653	​	$	55,071	​	$	18,000	​	$	1,474	​	$	49,103
Changes in unrealized gains (losses) held at period end	​	$	—	​	$	—	​	$	2,513	​	$	—	​	$	—	​	$	2,287

(1) Presented in the Consolidated Statements of Operations under net (loss) gain from fair value adjustments.

​ -28-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

The following tables present the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	March 31, 2026
​	​	​	​	​	Valuation	​	Unobservable	​	​	​	Weighted
​	​ ​ ​	Fair Value		​	Technique	​	Input	​	Range	​	Average
​	​	(Dollars in thousands)
Assets:	​		​		​		​		​		​
Municipals	​	$	17,614		Discounted cash flows		Spread over A rated Municipal Curves		5.9	%	n/a
Trust preferred securities	​	​	1,653		Discounted cash flows		Spread over 3-month SOFR		2.9	%	n/a
​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​		​		​		​		​	​	​
Junior subordinated debentures	​	$	55,071		Discounted cash flows		Spread over 3-month SOFR		2.9	%	n/a

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	December 31, 2025
​	​	​	​	​	Valuation	​	Unobservable	​	​	​	Weighted
​	​ ​ ​	Fair Value		​	Technique	​	Input	​	Range	​	Average
​	​	(Dollars in thousands)
Assets:	​		​		​		​		​		​
Municipals	​	$	17,261		Discounted cash flows		Spread over A rated Municipal Curves		5.9	%	n/a
Trust preferred securities	​	​	1,551		Discounted cash flows		Spread over 3-month SOFR		3.7	%	n/a
​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​		​		​		​		​	​	​
Junior subordinated debentures	​	$	51,666		Discounted cash flows		Spread over 3-month SOFR		3.7	%	n/a

​

​

The significant unobservable inputs used in the fair value measurement of the Company’s municipals, trust preferred securities and junior subordinated debentures valued under Level 3 at March 31, 2026 and December 31, 2025, are the effective yields used in the cash flow models. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

​

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a non-recurring basis and the level that was used to determine their fair value at March 31, 2026 and December 31, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Quoted Prices					​ ​ ​	​	​	​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​	​ ​ ​	​	​
​	​	in Active Markets					​	Significant Other					​	Significant Other					​	​	​	​	​	​
​	​	for Identical Assets					​	Observable Inputs					​	Unobservable Inputs					​	Total carried at fair value
​	​	(Level 1)					​	(Level 2)					​	(Level 3)					​	on a non-recurring basis
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026		​ ​ ​	2025
​		(In thousands)
Assets:		​	​		​	​		​	​		​	​		​	​		​	​		​	​		​	​
Impaired loans	​	$	—	​	$	—	​	$	—	​	$	—	​	$	18,519	​	$	17,789	​	$	18,519	​	$	17,789
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total assets	​	$	—	​	$	—	​	$	—	​	$	—	​	$	18,519	​	$	17,789	​	$	18,519	​	$	17,789

​ -29-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

The following tables present the qualitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	At March 31, 2026
​	​ ​ ​	Fair Value		​ ​ ​	Valuation Technique	​ ​ ​	Unobservable Input	​ ​ ​	Range	​ ​ ​	Weighted Average
​	​	(Dollars in thousands)
Assets:		​	​		​		​		​		​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Impaired loans		$	15,029	​	Sales approach	​	Adjustment to sales comparison value to reconcile differences between comparable sales	​	-25.0% to 14.7	%	(7.1)	%
​		​	​	​	​	​	Reduction for planned expedited disposal	​	0% to 15.0	%	13.5	%
​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Impaired loans		​	3,490	​	Discounted Cashflow	​	Discount Rate	​	8.3% to 9.7	%	8.9	%
​		​	​	​	​	​	Probability of Default	​	10.0% to 75.0	%	42.6	%

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	At December 31, 2025
​	​ ​ ​	Fair Value		​ ​ ​	Valuation Technique	​ ​ ​	Unobservable Input	​ ​ ​	Range	​ ​ ​	Weighted Average
​	​	(Dollars in thousands)
Assets:		​	​		​		​		​		​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Impaired loans		$	16,712	​	Sales approach	​	Adjustment to sales comparison value to reconcile differences between comparable sales	​	-25.0% to 10.0	%	(8.5)	%
​		​	​	​	​	​	Reduction for planned expedited disposal	​	15.0	%	15.0	%
​		​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Impaired loans		​	1,077	​	Discounted Cashflow	​	Discount Rate	​	8.3	%	8.3	%
​		​	​	​	​	​	Probability of Default	​	50.0	%	50.0	%

​

The weighted average for unobservable inputs for collateral-dependent loans is based on the relative fair value of the loans.

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at March 31, 2026 and December 31, 2025.

The methods and assumptions used to estimate fair value at March 31, 2026 and December 31, 2025 are as follows:

Securities:

The fair values of securities are contained in Note 4 (“Securities”) of the Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices, where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. When there is limited activity or less transparency around inputs to the valuation, securities are valued using discounted cash flows.

Impaired Loans:

For impaired loans, fair value is generally estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets or, for collateral dependent loans, 85% of the appraised or internally estimated value of the property. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements. -30-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Junior Subordinated Debentures:

The fair value of the junior subordinated debentures was developed using a credit spread based on stated spreads for recently issued subordinated debt instruments for issuers of similar asset size and credit quality of the Company and with similar durations adjusting for differences in the junior subordinated debt’s credit rating, liquidity, and time to maturity. The unrealized net gain/loss attributable to changes in our own credit risk was determined by adjusting the fair value as determined in the proceeding sentence by the average rate of default on debt instruments with a similar debt rating as our junior subordinated debentures, with the difference from the original calculation and this calculation resulting in the instrument-specific unrealized gain/loss.

Derivatives:

The fair value of derivatives is based upon broker quotes. -31-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables set forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	March 31, 2026
​	​	Carrying		​	Fair		​	​	​	​	​	​	​	​	​
​	​ ​ ​	Amount		​ ​ ​	Value		​ ​ ​	Level 1		​ ​ ​	Level 2		​ ​ ​	Level 3
​		(In thousands)
Assets:		​	​		​	​		​	​		​	​		​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and due from banks	​	$	158,707	​	$	158,707	​	$	158,707	​	$	—	​	$	—
Securities held-to-maturity	​		​	​		​	​		​	​		​	​		​
Mortgage-backed securities	​		7,812	​		7,203	​		—	​		7,203	​		—
Other securities	​		42,041	​		38,009	​		—	​		—	​		38,009
Securities available for sale	​		​	​		​	​		​	​		​	​		​
Mortgage-backed securities	​		1,087,248	​		1,087,248	​		—	​		1,087,248	​		—
Other securities	​		541,339	​		541,339	​		12,669	​		509,403	​		19,267
Loans held for investment, net of fees and costs	​		6,561,530	​		6,377,006	​		—	​		—	​		6,377,006
FHLB-NY stock	​		18,520	​		18,520	​		—	​		18,520	​		—
Accrued interest receivable	​		60,418	​		60,418	​		—	​		60,418	​		—
Derivatives	​		34,476	​		34,476	​		—	​		34,476	​		—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​		​	​		​	​		​	​		​	​		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits	​	$	7,580,388	​	$	7,571,623	​	$	5,360,401	​	$	2,211,222	​	$	—
Borrowed Funds	​		416,499	​		391,407	​		—	​		336,336	​		55,071
Accrued interest payable	​		13,693	​		13,693	​		—	​		13,693	​		—
Derivatives	​		23,112	​		23,112	​		—	​		23,112	​		—

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	December 31, 2025
​	​	Carrying		​	Fair		​	​	​	​	​	​	​	​	​
​	​ ​ ​	Amount		​ ​ ​	Value		​ ​ ​	Level 1		​ ​ ​	Level 2		​ ​ ​	Level 3
​	​	(In thousands)
Assets:		​	​		​	​		​	​		​	​		​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cash and due from banks	​	$	126,076	​	$	126,076	​	$	126,076	​	$	—	​	$	—
Securities held-to-maturity	​		​	​		​	​		​	​		​	​		​
Mortgage-backed securities	​		7,817	​		7,211	​		—	​		7,211	​		—
Other securities	​		42,363	​		39,021	​		—	​		—	​		39,021
Securities available for sale	​		​	​		​	​		​	​		​	​		​
Mortgage-backed securities	​		821,938	​		821,938	​		—	​		821,938	​		—
Other securities	​		567,986	​		567,986	​		12,650	​		536,524	​		18,812
Loans held for investment, net of fees and costs	​		6,653,952	​		6,414,923	​		—	​		—	​		6,414,923
FHLB-NY stock	​		18,937	​		18,937	​		—	​		18,937	​		—
Accrued interest receivable	​		59,436	​		59,436	​		—	​		59,436	​		—
Derivatives	​		37,900	​		37,900	​		—	​		37,900	​		—
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​		​	​		​	​		​	​		​	​		​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Deposits	​	$	7,311,742	​	$	7,307,635	​	$	5,022,898	​	$	2,284,737	​	$	—
Borrowed Funds	​		484,653	​		459,300	​		—	​		407,634	​		51,666
Accrued interest payable	​		13,030	​		13,030	​		—	​		13,030	​		—
Derivatives	​		31,714	​		31,714	​		—	​		31,714	​		—

​

​

​

​

​

​ -32-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

11.     Derivative Financial Instruments

At March 31, 2026 and December 31, 2025, the Company’s derivative financial instruments consisted of interest rate swaps and interest rate floor options. At March 31, 2026, the Company’s derivatives are used for four purposes: 1) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans with a notional amount of $635.8 million and $645.7 million of swaps outstanding at March 31, 2026 and December 31, 2025, respectively; 2) to facilitate risk management strategies for our loan customers with $1.2 billion of swaps outstanding, which include $604.0 million each with customers and bank counterparties at March 31, 2026 and $1.2 billion of swaps outstanding, which include $589.2 million each with customers and bank counterparties at December 31, 2025; 3) to mitigate exposure to rising interest rates on certain short-term advances and brokered deposits with $825.8 million and $905.8 million of swaps outstanding at March 31, 2026 and December 31, 2025, respectively; and 4) to mitigate the Company’s exposure to decreasing interest rates on a portion of its adjustable rate loan portfolio with a notional amount of $100.0 million of interest rate floor options outstanding at both March 31, 2026 and December 31, 2025.

At both March 31, 2026 and December 31, 2025, the Company maintained portfolio layer hedges on a closed portfolio of loans with a notional amount of $480.0 million.

​

For non-portfolio layer method fair value hedges, the hedge basis (the amount of the change in fair value) is added to (or subtracted from) the carrying amount of the hedged item. For portfolio layer method hedges, the hedge basis does not adjust the carrying value of the hedged item and is instead maintained on a closed portfolio basis. These basis adjustments would be allocated to the amortized cost of specific loans within the pools if the hedges were de-designated.

At March 31, 2026 and December 31, 2025, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges.

The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other assets for derivatives with positive fair values and Other liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship.

For cash flow hedges, the changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss), net of tax. Amounts in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged forecasted transaction affected earnings. During the three months ended March 31, 2026 and 2025, $0.6 million and $4.5 million in reduced expense, respectively, was reclassified from accumulated other comprehensive income (loss) to interest expense. The estimated amount to be reclassified in the next 12 months out of accumulated other comprehensive income (loss) into earnings is $0.6 million in reduced expense.

​

A portion of the reduced expense is driven by the amortization of income from terminated cash flow hedges. This income is amortized over the remaining original terms of terminated cash flow hedges. During the three months ended March 31, 2026 and 2025, there were no cashflow hedges terminated. During the three months ended March 31, 2026 and 2025, income from the amortization of terminated cash flow hedges totaled $0.1 million and $0.2 million, respectively.

​

​

​ -33-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	Assets					​ ​ ​	Liabilities
​	​	Notional		​	​	​	​	Notional		​	​	​
​	​ ​ ​	Amount		​ ​ ​	Fair Value ^(1)^		​ ​ ​	Amount			Fair Value ^(1)^
March 31, 2026	​	(In thousands)
Cash flow hedges:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (deposits)	​	$	355,000	​	$	1,312	​	$	470,750	​	$	1,738
Interest rate floors options (loans)	​	​	100,000	​	​	635	​	​	—	​	​	—
Fair value hedges:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (loans)	​	​	400,836	​	​	11,621	​	​	235,000	​	​	466
Non hedge:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (loans)	​		603,950	​	​	20,908	​	​	603,950	​	​	20,908
Total	​	$	1,459,786	​	$	34,476	​	$	1,309,700	​	$	23,112
​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​
Cash flow hedges:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (deposits)	​	$	205,000	​	$	725	​	$	700,750	​	$	5,398
Interest rate floors options (loans)	​	​	100,000	​	​	894	​	​	—	​	​	—
Fair value hedges:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (loans)	​	​	216,359	​	​	11,608	​	​	429,356	​	​	1,643
Non hedge:	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps (loans)	​		589,240	​	​	24,673	​	​	589,240	​	​	24,673
Total	​	$	1,110,599	​	$	37,900	​	$	1,719,346	​	$	31,714

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

​

​

The following table presents information regarding the Company’s fair value hedged items for the periods indicated:

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Cumulative Amount
​	​	​	​	​	​	​	​	of the Fair Value Hedging Adjustment
Line Item in the Consolidated Statement	​	Carrying Amount of the					​	Included in the Carrying Amount of
of Financial Condition in Which	​	Hedged					​	the Hedged
the Hedged Item Is Included	​	Assets/(Liabilities)					​	Assets/(Liabilities)
(In thousands)	​	March 31, 2026		​	December 31, 2025		​	March 31, 2026		​	December 31, 2025
Loans	​	​	​	​	​	​	​	​	​	​	​	​
Multi-family residential	​	$	74,630	​	$	75,296	​	$	(8,066)	​	$	(8,082)
Commercial real estate	​	​	31,748	​	​	40,566	​	​	(2,128)	​	​	(2,180)
Commercial business	​	​	39,241	​	​	39,541	​	​	(1,567)	​	​	(1,636)
Total	​	$	145,619	​	$	155,403	​	$	(11,761)	​	$	(11,898)
​	​	​	​	​	​	​	​	​	​	​	​	​
Portfolio Layer	​	​	​	​	​	​	​	​	​	​	​	​
Loans held for Investment ^(1)^	​	$	480,000	​	$	480,000	​	$	352	​	$	1,645
Total	​	$	480,000	​	$	480,000	​	$	352	​	$	1,645

(1) Carrying amount represents the amortized cost of the portfolio layer method on a closed portfolio at March 31 2026 and December 31, 2025, totaling $2.1 billion and $2.2 billion, respectively.

​

​

​ -34-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

​

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Operations for the periods indicated:

​

​	​	​	​	​	​	​	​	​
​	​	​	​	For the three months ended
​	​	Affected Line Item in the Statements	​	March 31,
(In thousands)	​ ​ ​	Where Net Income is Presented	​ ​ ​	2026		​ ​ ​	2025
Financial Derivatives:	​	​	​	​	​		​	​
Interest rate swaps - fair value hedge (loans)	​	Interest and fees on loans	​	$	749	​	$	1,946
​	​	​	​	​	​	​	​	​
Interest rate swaps - cash flow hedge (brokered deposits)	​	Interest expense - Deposits	​	​	709	​		4,544
​	​	​	​	​	​	​	​	​
Interest rate floors options - cash flow hedge (loans)	​	Interest and fees on loans	​	​	(101)	​	​	(12)
Total net income (expense) from the effects of derivative instruments			​	$	1,357	​	$	6,478

​

The Company’s derivatives are subject to master netting arrangements between the Company and its designated counterparties. The Company has not made a policy election to offset its derivative positions. The interest rate swaps with borrowers are cross collateralized with the underlying loan and, therefore, there is no posted collateral. Interest rate swap agreements with third-party counterparties contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount and receive collateral for agreements in a net asset position.

The following table presents the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Financial Condition as of the dates indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Gross Amount		​	Net Amount		​	​		​	​	​	​	​	​
​	​	Gross Amounts		​	Offset in Statement of		​	Presented in Statement of		​	Financial		​	Cash		​	​
(In thousands)	​ ​ ​	Recognized		​ ​ ​	Financial Condition		​ ​ ​	Financial Condition		​ ​ ​	Instruments		​ ​ ​	Collateral		​ ​ ​	Net Amount
March 31, 2026	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps	​	$	33,841	​	$	—	​	$	33,841	​	$	—	​	$	(16,615)	​	$	17,226
Interest rate floors options	​	​	635	​	​	—	​	​	635	​	​	—	​	​	—	​	​	635
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps	​	​	23,112	​	​	—	​	​	23,112	​	​	—	​	​	—	​	​	23,112
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2025	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps	​	$	37,006	​	$	—	​	$	37,006	​	$	—	​	$	(16,615)	​	$	20,391
Interest rate floors options	​	​	894	​	​	—	​	​	894	​	​	—	​	​	—	​	​	894
Liabilities:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest rate swaps	​	​	31,714	​	​	—	​	​	31,714	​	​	—	​	​	—	​	​	31,714

​

​

​

​

​ -35-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

12.     Accumulated Other Comprehensive Income (Loss):

The following tables set forth the changes in accumulated other comprehensive income (loss) by component for the periods indicated:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Unrealized Gains		​	Unrealized Gains		​	​	​	​	​	​	​	​	​
​	​	(Losses) on		​	(Losses) on		​	​	​	​	Fair Value		​	​	​
​	​	Available for Sale		​	Cash flow		​	Defined Benefit		​	Option Elected		​	​	​
March 31, 2026	​ ​ ​	Securities		​ ​ ​	Hedges		​ ​ ​	Pension Items		​ ​ ​	on Liabilities		​ ​ ​	Total
​		(In thousands)
Beginning balance, net of tax	​	$	3,640	​	$	(3,093)	​	$	(2,648)	​	$	1,648	​	$	(453)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Other comprehensive income (loss) before reclassifications, net of tax	​		(5,107)	​		3,205	​		—	​		110	​		(1,792)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	​		—	​		(423)	​		9	​		—	​		(414)
Net current period other comprehensive income (loss), net of tax	​		(5,107)	​		2,782	​		9	​		110	​		(2,206)
Ending balance, net of tax	​	$	(1,467)	​	$	(311)	​	$	(2,639)	​	$	1,758	​	$	(2,659)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Unrealized Gains		​	Unrealized Gains		​	​	​	​	​	​	​	​	​
​	​	(Losses) on		​	(Losses) on		​	​	​	​	Fair Value		​	​	​
​	​	Available for Sale		​	Cash flow		​	Defined Benefit		​	Option Elected		​	​	​
March 31, 2025	​ ​ ​	Securities		​ ​ ​	Hedges		​ ​ ​	Pension Items		​ ​ ​	on Liabilities		​ ​ ​	Total
​		(In thousands)
Beginning balance, net of tax	​	$	(4,331)	​	$	10,728	​	$	(848)	​	$	1,584	​	$	7,133
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Other comprehensive income (loss) before reclassifications, net of tax	​		2,871	​		(4,131)	​		—	​		2	​		(1,258)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	​		—	​		(3,130)	​		(50)	​		—	​		(3,180)
Net current period other comprehensive income (loss), net of tax	​		2,871	​		(7,261)	​		(50)	​		2	​		(4,438)
Ending balance, net of tax	​	$	(1,460)	​	$	3,467	​	$	(898)	​	$	1,586	​	$	2,695

​ -36-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables set forth significant amounts reclassified from accumulated other comprehensive income (loss) by component for the periods indicated:

​

​	​	​	​	​	​
For the three months ended March 31, 2026
​	​	Amounts Reclassified from		​	​
Details about Accumulated Other	​	Accumulated Other		​	Affected Line Item in the Statement
Comprehensive Income Components	​ ​ ​ ​	Comprehensive Income (Loss)		​ ​ ​ ​	Where Net Income (Loss) is Presented
​	​	(In thousands)		​	​
Cash flow hedges:	​		​	​	​
Interest rate swaps benefit (expense)	​	$	709		Interest expense
Interest rate floors options benefit (expense)	​	​	(101)	​	Interest and fees on loans
​	​	​	608	​	Total before tax
​	​		(185)		Provision (benefit) for income taxes
​	​	$	423		Net of tax
​	​	​	​	​	​
Amortization of defined benefit pension items:	​		​	​	​
Actuarial losses benefit (expense)	​	$	13	^(1)^	Other operating expense
​	​		(4)		Provision (benefit) for income taxes
​	​	$	9		Net of tax

​

​	​	​	​	​	​
For the three months ended March 31, 2025
​	​	Amounts Reclassified from		​	​
Details about Accumulated Other	​	Accumulated Other		​	Affected Line Item in the Statement
Comprehensive Income Components	​ ​ ​ ​	Comprehensive Income (Loss)		​ ​ ​ ​	Where Net Income (Loss) is Presented
​	​	(In thousands)		​	​
Cash flow hedges:	​		​		​
Interest rate swaps benefit (expense)	​	$	4,544		Interest expense
Interest rate floors options benefit (expense)	​	​	(12)	​	Interest and fees on loans
​	​	​	4,532	​	Total before tax
​	​		(1,402)		Provision (benefit) for income taxes
​	​	$	3,130		Net of tax
​	​	​	​	​	​
Amortization of defined benefit pension items:	​		​	​	​
Actuarial losses benefit (expense)	​	$	73	^(1)^	Other operating expense
​	​		(23)	​	Provision (benefit) for income taxes
​	​	$	50		Net of tax

(1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. See Note 9 (“Pension and Other Postretirement Benefit Plans”) of the Notes to the Consolidated Financial Statements for additional information.

​

​

​

​

​

​

​

​

​

​

​

​ -37-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

13.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards and a Capital Conservation Buffer (“CCB”). As of March 31, 2026, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Bank was 6.59% and 6.40% at March 31, 2026 and December 31, 2025, respectively.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	March 31, 2026				​ ​ ​	December 31, 2025
​	​	​	​	​	Percent of	​	​	​	​	Percent of
​	​ ​ ​	Amount		​ ​ ​	Assets	​ ​ ​	Amount		​ ​ ​	Assets
​		(Dollars in thousands)									​
Tier I (leverage) capital:		​	​		​		​	​		​	​
Capital level	​	$	921,751		10.45	%	$	909,636		10.29	%
Requirement to be well-capitalized	​		440,854		5.00	​		441,813		5.00	​
Excess	​		480,897		5.45	​		467,823		5.29	​
​	​	​	​	​	​	​	​	​	​	​	​
Common Equity Tier I risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	921,751		13.89	%	$	909,636		13.73	%
Requirement to be well-capitalized	​		431,199		6.50	​		430,567		6.50	​
Excess	​		490,552		7.39	​		479,069		7.23	​
​	​	​	​	​	​	​	​	​	​	​	​
Tier I risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	921,751		13.89	%	$	909,636		13.73	%
Requirement to be well-capitalized	​		530,706		8.00	​		529,929		8.00	​
Excess	​		391,045		5.89	​		379,707		5.73	​
​	​	​	​	​	​	​	​	​	​	​	​
Total risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	967,947		14.59	%	$	954,061		14.40	%
Requirement to be well-capitalized	​		663,383		10.00	​		662,411		10.00	​
Excess	​		304,564		4.59	​		291,650		4.40	​

​

​ -38-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company is subject to the same regulatory capital requirements as the Bank. As of March 31, 2026, the Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Company at March 31, 2026 and December 31, 2025 was 5.27% and 5.36%, respectively.

Set forth below is a summary of the Company’s compliance with banking regulatory capital standards.

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	March 31, 2026				​ ​ ​	December 31, 2025
​	​	​	​	​	Percent of	​	​	​	​	Percent of
​	​ ​ ​	Amount		​ ​ ​	Assets	​ ​ ​	Amount		​ ​ ​	Assets
​	​	(Dollars in thousands)
Tier I (leverage) capital:		​	​		​		​	​		​	​
Capital level	​	$	747,808		8.48	%	$	752,523		8.52	%
Requirement to be well-capitalized	​		440,855		5.00	​		441,788		5.00	​
Excess	​		306,953		3.48	​		310,735		3.52	​
​	​	​	​	​	​	​	​	​	​	​	​
Common Equity Tier I risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	694,708		10.47	%	$	702,747		10.61	%
Requirement to be well-capitalized	​		431,258		6.50	​		430,555		6.50	​
Excess	​		263,450		3.97	​		272,192		4.11	​
​	​	​	​	​	​	​	​	​	​	​	​
Tier I risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	747,808		11.27	%	$	752,523		11.36	%
Requirement to be well-capitalized	​		530,779		8.00	​		529,914		8.00	​
Excess	​		217,029		3.27	​		222,609		3.36	​
​	​	​	​	​	​	​	​	​	​	​	​
Total risk-based capital:	​		​		​	​		​		​	​
Capital level	​	$	984,004		14.83	%	$	986,948		14.90	%
Requirement to be well-capitalized	​		663,474		10.00	​		662,392		10.00	​
Excess	​		320,530		4.83	​		324,556		4.90	​

​

​

​

​

14.    Segment Reporting

The Company operates as a single unit, therefore, for the purpose of segment reporting we consider the Company as a single reportable segment, a community bank. The Bank revenues are derived principally from interest on loans, our mortgage-backed securities portfolio, and interest and dividends on other investments in our securities portfolio. We also generate non-interest income from loan fees, service charges on deposit accounts, mortgage servicing fees, and other fees, income earned on BOLI, dividends on FHLB-NY stock and net gains and losses on sales of securities and loans.

The Bank’s chief operating decision maker (“CODM”) is the senior executive committee that includes, but is not limited to, the chief executive officer, chief financial officer, and the chief operating officer. The CODM uses net income (loss) as the measure of segment performance to evaluate the income generated from assets (return on assets) and to evaluate how efficiently the Company leverages its shareholders equity (return on equity) in deciding the most appropriate avenue to reinvest profits.

​

As we consider the entire entity as one operating segment, please see the Consolidated Statements of Operations for the measure of segment performance, net income (loss) and significant segment expenses. Segment assets are consistent with total assets as presented on the Consolidated Statements of Financial Condition.

​

​ -39-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table presents consolidated net income (loss) and other important metrics the CODM will use to evaluate the operations of the Company:

​

​	​	​	​	​	​	​
​	For the three months ended March 31,
​	2026		​ ​ ​	2025		​ ​ ​
​	(Dollars in thousands, except per share data)
Net income (loss)	$	5,833	​	$	(9,796)	​
​	​	​	​	​	​	​
Diluted earnings (loss) per common share	$	0.17	​	$	(0.29)	​
​	​	​	​	​	​	​
Return on average assets		0.26	%		(0.43)	%
Return on average equity		3.26	%		(5.36)	%
Book value per common share	$	20.58	​	$	20.81	​

​

​

15. Subsequent Event

The Company has evaluated subsequent events through the date these condensed consolidated financial statements were available to be issued. Other than the matters described below, no subsequent events were identified that require recognition or disclosure in the accompanying condensed consolidated financial statements.

​

On December 29, 2025, Flushing Financial Corporation (the "Company" or "Flushing") and its wholly owned subsidiary Flushing Bank entered into an Agreement and Plan of Merger (the "Merger Agreement") with OceanFirst Financial Corp. ("OceanFirst") and its wholly owned subsidiary OceanFirst Bank N.A. The Merger Agreement provides that, on the terms and subject to the conditions set forth therein, the Company will merge with and into OceanFirst (the "Merger"), with OceanFirst continuing as the surviving corporation. Immediately following the Merger, Flushing Bank will merge with and into OceanFirst Bank N.A. (the "Bank Merger"), with OceanFirst Bank N.A. continuing as the surviving bank.

​

The Merger is structured as an all-stock transaction. Under the terms of the Merger Agreement, at the effective time of the Merger, each share of common stock, par value $0.01 per share, of the Company issued and outstanding immediately prior to the effective time (other than certain excluded shares) will be converted into the right to receive 0.85 shares of common stock, par value $0.01 per share, of OceanFirst (the "Exchange Ratio"), with cash paid in lieu of fractional shares.

​

On March 23, 2026, the New York State Department of Financial Services granted its approval of the Bank Merger and related applications.

​

Subsequent to March 31, 2026, the parties received the remaining shareholder and regulatory approvals required to consummate the Merger. Specifically:

​

• On April 2, 2026, the shareholders of OceanFirst and the shareholders of the Company each approved the Merger Agreement and the transactions contemplated thereby at their respective special meetings.

​

• On April 6, 2026, the Office of the Comptroller of the Currency granted its approval of the Bank Merger.

​

• On April 24, 2026, the Board of Governors of the Federal Reserve System granted its approval of the application by OceanFirst to merge with the Company and to indirectly acquire Flushing Bank.

​

​ -40-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

With the receipt of the foregoing approvals, all regulatory approvals required to consummate the Merger and the Bank Merger have been obtained. The closing of the Merger is expected to occur no later than June 1, 2026, subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the Merger Agreement. The Merger had not been consummated as of the date these condensed consolidated financial statements were available to be issued, and accordingly the effects of the Merger have not been reflected in the accompanying condensed consolidated financial statements.

​

Related Warburg Pincus Equity Investment

​

In connection with the Merger Agreement, on December 29, 2025, OceanFirst entered into an investment agreement (the "Investment Agreement") with affiliates of investment funds managed by Warburg Pincus LLC (collectively, the "Investors"), pursuant to which the Investors have agreed to make a fully committed $225 million investment in newly issued equity securities of OceanFirst, consisting of shares of OceanFirst common stock and non-voting common-equivalent stock, together with related warrants (the "Warburg Pincus Investment"). The Company is not a party to the Investment Agreement. The Warburg Pincus Investment is expected to close concurrently with, and is conditioned upon the concurrent closing of, the Merger and the satisfaction of other customary closing conditions set forth in the Investment Agreement. The proceeds of the Warburg Pincus Investment are expected to be used by OceanFirst to support the combined company’s capital position following the closing of the Merger.

​

16.     New Authoritative Accounting Pronouncements

Accounting Standards: Pending Adoption

​

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)”. This ASU requires that public business entities on an interim and annual basis (1) disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption, which relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contains any of the expense categories listed in (a) - (e). (2) include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. (3) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and (4) disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This ASU is effective for public business entities for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027.  We are currently evaluating if the adoption of this ASU will have a material effect on our consolidated financial statements.

​ -41-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

​

ITEM 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report should be read in conjunction with the more detailed and comprehensive disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition, please read this section in conjunction with our Consolidated Financial Statements and Notes to Consolidated Financial Statements contained herein.

As used in this Quarterly Report, the words “we,” “us,” “our” and the “Company” are used to refer to Flushing Financial Corporation and its direct and indirect wholly owned subsidiaries, Flushing Bank (the “Bank”), Flushing Service Corporation, and FSB Properties Inc.

Statements contained in this Quarterly Report relating to plans, strategies, objectives, 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 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, factors discussed elsewhere in this Quarterly Report and in other documents filed by us with the Securities and Exchange Commission from time to time, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2025. 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. We have no obligation to update these forward-looking statements.

Executive Summary

We are a Delaware corporation organized in May 1994. The Bank was organized in 1929 as a New York State-chartered mutual savings bank. Today the Bank operates as a full-service New York State-chartered commercial bank. The Bank’s primary regulator is the New York State Department of Financial Services, and its primary federal regulator is the Federal Deposit Insurance Corporation (“FDIC”). Deposits are insured to the maximum allowable amount by the FDIC. Additionally, the Bank is a member of the Federal Home Loan Bank system. The primary business of Flushing Financial Corporation has been the operation of the Bank. At March 31, 2026, the Bank owns two subsidiaries: Flushing Service Corporation and FSB Properties Inc. The Bank also operates an internet branch, which operates under the brands of iGObanking.com® and BankPurely® (the “Internet Branch”). The activities of Flushing Financial Corporation are primarily funded by dividends, if any, received from the Bank, issuances of subordinated debt, junior subordinated debt, and issuances of equity securities. Flushing Financial Corporation’s common stock is traded on the NASDAQ Global Select Market under the symbol “FFIC.”

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential loans, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family loans (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) Small Business Administration (“SBA”) loans and other small business loans; (3) construction loans; (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. Our results of operations depend primarily on net interest income, which is the difference between the income earned on our interest-earning assets and the cost of our interest-bearing liabilities. Net interest income is the result of our net interest rate margin, which is the difference between the average yield earned on interest-earning assets and the average cost of interest-bearing liabilities, adjusted for the difference in the average balance of interest-earning assets as compared to the -42-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

average balance of interest-bearing liabilities. We also generate non-interest income primarily from loan fees, service charges on deposit accounts, and other fees, income earned on Bank Owned Life Insurance (“BOLI”), dividends on Federal Home Loan Bank of New York (“FHLB-NY”) stock and net gains and losses on sales of securities and loans. Our operating expenses consist principally of employee compensation and benefits, occupancy and equipment costs, other general and administrative expenses and income tax expense. Our results of operations can also be significantly affected by changes in the fair value of financial assets and financial liabilities for which changes in value are recorded through earnings and our periodic provision for credit losses.

Proposed Merger

On December 29, 2025, the Company, OceanFirst Financial Corp. (“OceanFirst”), and Apollo Merger Sub Corp., a wholly-owned subsidiary of OceanFirst (“Merger Sub”), entered into an Agreement and Plan of Merger (as it may be amended, modified or supplemented from time to time in accordance with its terms, the “merger agreement”), pursuant to which, on the terms and subject to the conditions set forth in the merger agreement, OceanFirst and the Company have agreed to combine their respective businesses through a series of mergers.

With the foregoing approvals, no further regulatory approvals are required to complete the proposed transaction. The parties anticipate that the proposed transaction will close no later than June 1, 2026, subject to the satisfaction or waiver of the remaining closing conditions set forth in the merger agreement.

On the terms and subject to the conditions set forth in the merger agreement, at the closing, Merger Sub will merge with and into the Company (the “first merger”), with the Company as the surviving entity. Immediately following the first merger, the Company will merge with and into OceanFirst (the “second merger” and together with the first merger, the “mergers”), with OceanFirst as the surviving corporation (the “combined company” and certain references to “OceanFirst” herein refer to the combined company following the second merger, as context requires). On the day immediately following the mergers, Flushing Bank will merge with and into OceanFirst Bank, National Association, a national banking association and a wholly-owned subsidiary of OceanFirst (“OceanFirst Bank,” and such merger, the “bank merger”), with OceanFirst Bank continuing as the surviving bank (the “surviving bank”).

In the first merger, the Company’s stockholders will be entitled to receive 0.85 of a share of OceanFirst common stock for each share of Company common stock they own, subject to certain exceptions. Although the number of shares of OceanFirst common stock that the Company’s stockholders will be entitled to receive per share of Company common stock is fixed, the market value of the merger consideration will fluctuate with the market price of OceanFirst common stock and will not be known at the time the Company’s stockholders vote on the merger agreement.

Concurrently with its entry into the merger agreement, OceanFirst entered into an investment agreement (the “investment agreement”), dated as of December 29, 2025, with affiliates of funds managed by Warburg Pincus LLC (“Warburg”) pursuant to which a $225 million cash investment (the “investment”) will be made into the combined entity.

For the three months ended March 31, 2026, we reported net income of $5.8 million, or $0.17 per diluted common share, an increase of $15.6 million, or 159.5% from net loss of ($9.8) million, or ($0.29) per diluted common share earned in the three months ended March 31, 2025.

​

During the three months ended March 31, 2026, the net interest margin increased 16 basis points to 2.67% from 2.51% in the three months ended March 31, 2025. The increase was driven by lower deposit costs and growth in noninterest bearing deposits. Excluding prepayment penalty income from loans, net recoveries/reversals of interest from non-accrual and delinquent loans, net gains (losses) from fair value adjustments on hedges, and purchase accounting adjustments, the net interest margin increased 14 basis points to 2.62% for the three months ended March 31, 2026, from 2.48% for the three months ended March 31, 2025. -43-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Approximately 90% of our loan portfolio is collateralized by real estate with an average loan to value of less than 35%, based on appraisal at origination. We have a long history and foundation built upon disciplined underwriting, strong credit quality, and a resilient seasoned loan portfolio with solid asset protection. At March 31, 2026, our allowance for credit losses (“ACL”) to gross loans stood at 0.68% and our ACL to non-performing loans was 87.9%. Non-performing assets at the end of the quarter were 0.77% of total assets.

The Bank and Company remain well-capitalized under current capital regulations of the FDIC and the Federal Reserve Board, respectively, and are subject to similar regulatory capital requirements. See Note 13 (“Regulatory Capital”) of the Notes to the Consolidated Financial Statements.

The following table presents operating data highlights for the periods indicated:

​

​	​	​	​	​	​	​
​	​	For the three months ended March 31,
​	​ ​ ​	2026		​ ​ ​	2025
​	​	(In thousands, except per share data)
Operating data:		​	​		​	​
Interest and dividend income	​	$	113,010	​	$	116,536
Interest expense	​		57,816	​		63,547
Net interest income (loss)	​		55,194	​		52,989
Provision (benefit) for credit losses	​		2,011	​		4,318
Non-interest income (loss)	​		1,785	​		5,074
Non-interest expense	​		46,775	​		59,676
Income (loss) before income taxes	​		8,193	​		(5,931)
Provision (benefit) for income taxes	​	​	2,360	​	​	3,865
Net income (loss)	​	$	5,833	​	$	(9,796)
​	​	​	​	​	​	​
Basic earnings (loss) per common share	​	$	0.17	​	$	(0.29)
Diluted earnings (loss) per common share	​	​	0.17	​	​	(0.29)
Dividends paid per common share	​	$	0.22	​	$	0.22

​

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

General. Net income (loss) for the three months ended March 31, 2026 was $5.8 million, an increase of $15.6 million, or 159.5%, from ($9.8) million for the three months ended March 31, 2025. Diluted earnings (loss) per common share was $0.17 and ($0.29) for the three months ended March 31, 2026, and 2025, respectively. Return on average equity was 3.26% for the three months ended March 31, 2026 compared to (5.36%) for the three months ended March 31, 2025. Return on average assets was 0.26% for the three months ended March 31, 2026 compared to (0.43%) for the three months ended March 31, 2025. The period ended March 31, 2025, included an impairment charge totaling $17.6 million to fully impair goodwill.

Interest Income. Interest and dividend income decreased $3.5 million, or 3.0%, to $113.0 million for the three months ended March 31, 2026, from $116.5 million for the three months ended March 31, 2025. The decline in interest income was primarily attributable to a decrease of $176.0 million in the average balance of interest-earning assets to $8,293.0 million for the three months ended March 31, 2026, from $8,468.9 million for the comparable prior year period. There was a 5 basis point decrease in the yield on interest-earning assets to 5.46% for the three months ended March 31, 2026, compared to 5.51% for the three months ended March 31, 2025. The decline in interest-earning assets was primarily driven by our decision to maintain pricing and credit discipline. Excluding prepayment penalty income from loans, net recoveries/reversals of interest from non-accrual and delinquent loans, net gains (losses) from fair value adjustments on hedges, and purchase accounting adjustments, the yield on total interest-earning assets decreased 7 basis points to 5.41% for the three months ended March 31, 2026, from 5.48% for the three months ended March 31, 2025.

-44-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Interest Expense. Interest expense decreased $5.7 million, or 9.0%, to $57.8 million for the three months ended March 31, 2026, from $63.5 million for the three months ended March 31, 2025. The decline in interest expense was primarily due to the average cost of interest-bearing liabilities decreasing 18 basis points to 3.32% for the three months ended March 31, 2026, from 3.50% for the three months ended March 31, 2025, coupled with the average balance of interest-bearing liabilities decreasing $286.4 million to $6,974.7 million for the three months ended March 31, 2026, from $7,261.1 million for the comparable prior year period. Average non-interest bearing deposits increased $110.5 million, or 12.9%, reducing the need for interest bearing funding.

Net Interest Income. Net interest income for the three months ended March 31, 2026, was $55.2 million, an increase of $2.2 million, or 4.2%, from $53.0 million for the three months ended March 31, 2025. The increase in net interest income was driven by an increase in the net interest margin of 16 basis points to 2.67% for the three months ended March 31, 2026, from 2.51% for the three months ended March 31, 2025. The net interest margin, excluding prepayment penalty income from loans, net recoveries/reversals of interest from non-accrual and delinquent loans, net gains (losses) from fair value adjustments on hedges, and purchase accounting adjustments, was 2.62% for the three months ended March 31, 2026, an increase of 14 basis points from 2.48% for the three months ended March 31, 2025.

​

Provision for Credit Losses. During the three months ended March 31, 2026, the provision for credit losses was $2.0 million compared to $4.3 million for the three months ended March 31, 2025. The provision recorded during the three months ended March 31, 2026 was primarily driven by increased reserves applied to two Business Banking loans and one Real Estate loan. The current average loan-to-value ratio for our non-performing assets collateralized by real estate was 59.3% at March 31, 2026. The Bank continues to maintain conservative underwriting standards.

Non-Interest Income. Non-interest income for the three months ended March 31, 2026, was $1.8 million, a decrease of $3.3 million, or 64.8% from $5.1 million in the prior year comparable period. The decrease was primarily due to higher  net losses from fair value adjustments recorded during the three months ended March 31, 2026, compared to the three months ended March 31, 2025.

Non-Interest Expense. Non-interest expense for the three months ended March 31, 2026, was $46.8 million, a decrease of $12.9 million, or 21.6%, from $59.7 million for the three months ended March 31, 2025. The decrease was primarily due to a goodwill impairment charge for $17.6 million recorded during the first quarter ended March 31, 2025. This was partially offset by an increase of $3.7 million in salaries and employee benefits to $26.6 million in the three months ended March 31, 2026, compared to three months ended March 31, 2025.

Income before Income Taxes. Income before income taxes for the three months ended March 31, 2026, was $8.2 million, an increase of $14.1 million, from the net loss totaling ($5.9) million for the three months ended March 31, 2025 for the reasons discussed above.

Provision for Income Taxes. The provision for income taxes was $2.4 million for the three months ended March 31, 2026, a decrease of $1.5 million, or 38.9%, from $3.9 million for the three months ended March 31, 2025. The effective tax rate for the three months ended March 31, 2026 was 28.8% compared to (65.2%) for the three months ended March 31, 2025. The March 31, 2025 tax rate was negatively impacted by the non-tax-deductibility of the goodwill impairment charge.

FINANCIAL CONDITION

Assets. Total assets at March 31, 2026, were $8,862.8 million, an increase of $169.5 million, or 2.0%, from $8,693.3 million at December 31, 2025. The increase in total assets was mainly due to securities available for sale increasing $238.7 million, or 17.2%, during the three months ended March 31, 2026, to $1,628.6 million from $1,389.9 million at December 31, 2025, partially offset with a decrease during the same period in total net loans held for investment totaling $94.1 million. The decrease in loans was primarily due to the Company maintaining pricing and credit discipline. Loan originations and purchases were $161.5 million for the three months ended March 31, 2026, a decrease of $12.6 million,

-45-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

or 7.2%, from $174.1 million for the three months ended March 31, 2025. The loan pipeline was $327.4 million at March 31, 2026, compared to $275.5 million at December 31, 2025.

The following table shows loan originations and purchases for the periods indicated:

​

​	​	​	​	​	​	​	​
​		For the three months ended
​		March 31,					​
(In thousands)	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​
Multi-family residential	​	$	47,784	​	$	21,183
Commercial real estate	​		21,922	​		22,916
One-to-four family – mixed-use property	​		4,302	​		1,842
One-to-four family – residential ^(1)^	​		289	​		35,206
Construction	​		4,043	​		3,275
Small Business Administration^^	​		5,510	​		1,250
Commercial business and other ^(2)^	​		77,657	​		88,404
Total	​	$	161,507	​	$	174,076	​

(1) Includes purchases of $35.1 million for the three months ended March 31, 2025.

(2) Includes purchases of $34.0 million and $23.2 million for the three months ended March 31, 2026 and 2025, respectively.

​

​

The Bank maintains its conservative underwriting standards that include, among other things, a loan-to-value ratio of 75% or less and a debt coverage ratio of at least 125%. Multi-family residential (excluding underlying co-operative mortgages), commercial real estate and one-to-four family mixed-use property mortgage loans originated and purchased during the three months ended March 31, 2026 had an average loan-to-value ratio of 40.0% and an average debt coverage ratio of 196.0%.

Non-performing assets totaled $68.2 million at March 31, 2026, an increase of $9.3 million, or 15.9% from December 31, 2025. Total non-performing assets as a percentage of total assets were 0.77% at March 31, 2026 compared to 0.68% at December 31, 2025. The ratio of ACL – loans to total non-performing loans was 87.9% at March 31, 2026 compared to 103.0% at December 31, 2025.

During the three months ended March 31, 2026, mortgage-backed securities increased $265.3 million, or 32.0%, to $1,095.1 million from $829.8 million at December 31, 2025. The increase during the three months ended March 31, 2026 was primarily due to purchases of securities totaling $342.2 million at an average yield of 4.68% and principal repayments totaling $70.0 million, partially offset by a decrease in the securities fair value totaling $6.9 million.

During the three months ended March 31, 2026, other securities decreased $27.0 million, or 4.4%, to $583.4 million from $610.4 million at December 31, 2025. The decrease in other securities during the three months ended March 31, 2026, was primarily due to calls totaling $34.3 million and principal repayments totaling $3.9 million, partially offset by due to purchases totaling $12.0 million, at an average yield of 4.72%. At March 31, 2026, other securities primarily consisted of securities issued by mutual or bond funds, government agency securities, municipal bonds, corporate bonds, and CLOs. -46-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Liabilities. Total liabilities were $8,165.4 million at March 31, 2026, an increase of $180.1 million, or 2.3%, from $7,985.3 million at December 31, 2025. During the three months ended March 31, 2026, Due to Depositors increased $232.0 million, or 3.2%, to $7,484.1 million primarily due to increases in NOW and money market accounts totaling $270.0 million, or 6.9% and non-interest bearing accounts of $26.2 million, or 2.7%. These increases were partially offset by a decrease in certificates of deposit accounts totaling $68.9 million, or 3.0%. At March 31, 2026, the Company had uninsured deposits totaling $2.8 billion, or 36.4% of deposits of which $1.4 billion was fully collateralized by some other method leaving uninsured and uncollateralized deposits totaling $1.3 billion, or 17.5% of deposits. Uninsured deposits are greatly influenced by our government deposit portfolio. These deposits fluctuate at times that affect both the uninsured deposit levels and other sources of liquidity used. Borrowed funds decreased $68.2 million, or 14.1%, during the three months ended March 31, 2026, as funds were not needed due to increases in deposits and decreases in loans.

Total deposits at the periods shown and the weighted average rate on deposits at March 31, 2026 and December 31, 2025, are as follows:

​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Weighted Average	​
​	​	March 31,		​	December 31,		​	Nominal Rate	​
​	​ ​ ​	2026		​ ​ ​	2025		​ ​ ​	2026 ^(1)^	​
​	​	(In thousands)
Interest-bearing deposits:	​	​	​	​	​	​	​	​	​
Certificates of deposit accounts	​	$	2,219,987	​	$	2,288,844	​	3.61	%
Savings accounts	​		98,325	​		93,752	​	0.36	​
Money market accounts	​		1,855,343	​		1,791,616	​	3.32	​
NOW accounts	​		2,314,962	​		2,108,653	​	3.10	​
Total interest-bearing deposits	​		6,488,617	​		6,282,865	​	​	​
Non-interest bearing demand deposits	​		995,529	​		969,287	​	​	​
Total due to depositors	​		7,484,146	​		7,252,152	​	​	​
Mortgagors' escrow deposits	​		96,242	​		59,590	​	0.36	​
Total deposits	​	$	7,580,388	​	$	7,311,742	​		​

(1) The weighted average rate does not reflect the effect of interest rate swaps.

​

Included in deposits were brokered deposits totaling $1,131.0 million, a decrease of $0.1 million, from $1,131.1 million at December 31, 2025. We utilize brokered deposits as an additional funding source, to assist in the management of our interest rate risk and as an underlying funding source for a portion of our interest rate swaps. We obtain brokered certificates of deposit as a wholesale funding source when the interest rate on these deposits are below other wholesale options, or to extend the maturities of our deposits. Brokered deposits generally have a higher beta than our retail deposits as the interest rates are typically more sensitive to changes in the federal funds rates. A portion of our brokered certificates of deposit are hedged against rising interest rates using interest rate swaps. At both March 31, 2026 and December 31, 2025, $725.8 million of brokered certificates of deposits were hedged using interest rate swaps. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements. Brokered deposits obtained by the Bank are generally fully FDIC insured. At March 31, 2026, and December 31, 2025, the Bank did not hold any uninsured brokered deposits.

​

​ -47-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

The following table shows the composition of brokered deposits at the periods indicated:

​

​	​	​	​	​	​	​
​	​	March 31,		​	December 31,
(In thousands)	​	2026		​	​	2025
NOW accounts	​	$	299,970	​	$	299,947
Certificates of deposit	​	​	831,075	​	​	831,179
Total brokered deposits	​	$	1,131,045	​	$	1,131,126

​

​

​

Interest expense on brokered deposits is summarized as follows for the periods indicated:

​

​	​	​	​	​	​	​
​	​	March 31,		​	December 31,
(In thousands)	​ ​ ​	2026		​	​	2025
NOW accounts	​	$	2,903	​	$	10,429
Money market accounts	​		—	​	​	554
Certificates of deposit	​	​	7,321	​	​	28,211
Total interest expense on brokered deposits	​	$	10,224	​	$	39,194

​

​

Equity. Total stockholders’ equity was $697.4 million at March 31, 2026, a decrease of $10.6 million, or 1.5%, from $708.0 million at December 31, 2025. Stockholders’ equity decreased primarily due to the declaration and payment of dividends on the Company’s common stock of $0.44 per common share totaling $15.3 million, and a decrease of $2.2 million in other comprehensive income (loss), partially offset by net income totaling $5.8 million. Book value per common share was $20.58 at March 31, 2026, compared to $20.96 at December 31, 2025.

Liquidity. Liquidity is the ability to economically meet current and future financial obligations. The Company’s primary objectives in terms of managing liquidity are to maintain the ability to originate and purchase loans and securities, repay borrowings as they mature, satisfy financial obligations that arise in the normal course of business and meet our customer’s deposit withdrawal needs. Our primary sources of funds are deposits, borrowings, principal and interest payments on loans, mortgage-backed and other securities, and proceeds from sales of securities and loans. Deposit flows and mortgage prepayments, however, are greatly influenced by the level of interest rates, economic conditions, and competition. The Company has other sources of liquidity, including unsecured overnight lines of credit, brokered deposits and other types of borrowings. At March 31, 2026 and December 31, 2025, the Company had $4.1 billion and $3.9 billion, respectively, in combined available liquidity through cash lines with the FHLB-NY, Federal Reserve and other commercial banks, as well as unencumbered securities.

​ -48-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

The following tables present the Company’s available liquidity by source at the periods indicated:

​

​	​	​	​	​	​	​	​	​	​
​	​	At March 31, 2026
​	​	Total		​	Amount		​	Net
​	​ ​ ​	Available		​ ​ ​	Used		​ ​ ​	Availability
​	​	(In millions)
Internal Sources:		​	​		​	​		​	​
Unencumbered Securities	​	$	1,231.9	​	$	—	​	$	1,231.9
Interest Earnings Deposits	​		89.8	​		—	​		89.8
External Sources:	​		​	​		​	​		​
Federal Home Loan Bank	​		2,607.9	​		1,805.1	​		802.8
Federal Reserve Bank	​		1,370.3	​		—	​		1,370.3
Other Banks	​		631.0	​		—	​		631.0
Total Liquidity	​	$	5,930.9	​	$	1,805.1	​	$	4,125.8
​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	At December 31, 2025
​	​	Total		​	Amount		​	Net
​	​ ​ ​	Available		​ ​ ​	Used		​ ​ ​	Availability
​	​	(In millions)
Internal Sources:		​	​		​	​		​	​
Unencumbered Securities	​	$	957.1	​	$	—	​	$	957.1
Interest Earnings Deposits	​		45.7	​		—	​		45.7
External Sources:	​		​	​		​	​		​
Federal Home Loan Bank	​		2,661.6	​		1,727.3	​		934.3
Federal Reserve Bank	​		1,383.6	​		—	​		1,383.6
Other Banks	​		627.0	​		60.0	​		567.0
Total Liquidity	​	$	5,675.0	​	$	1,787.3	​	$	3,887.7

​

Liquidity management is both a short and long-term function of business management. During 2026, funds were used by the Company’s operating and investing activities funded by financing activities. The largest uses of funds during the three months ended March 31, 2026 were the purchase of $354.2 million of securities available for sale and the purchase of $34.0 million of loans. These uses were primarily funded by an increase in due to depositors totaling $231.8 million, net repayments of loans totaling $126.0 million and sales, calls and repayments of securities totaling $108.7 million. Our most liquid assets are cash and cash equivalents, which include cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less. The level of these assets is dependent on our operating, financing, lending, and investing activities during any given period. At March 31, 2026, cash and cash equivalents totaled $158.7 million, an increase of $32.6 million, or 25.9% from $126.1 million, at December 31, 2025. A portion of our cash and cash equivalents is restricted cash held as collateral for interest rate swaps. At each of March 31, 2026, and December 31, 2025, restricted cash totaled $16.6 million.

INTEREST RATE RISK

Interest rate risk is the impact on earnings and capital from changes in interest rates. Interest rate risk exists because our interest-earning assets and interest-bearing liabilities may mature or reprice at different times or by different amounts. We assess interest rate risk by comparing the results of several income and capital simulations scenarios to the base case compared to scenarios with changes in interest rates, degree of change over time, speed of change, and changes in the shape of the yield curve. These scenarios have assumptions including loan originations, investment securities purchases and sales, prepayment rates on loans and investment securities, deposit flows, and mix and pricing decisions.

Asset/Liability Management. Asset/liability management involves assessing, monitoring and managing interest rate risk. The asset liability committee (“ALCO”) and the Investment Committee of the Board of Directors (“Board ALCO”) have primary oversight responsibility of interest rate risk. The actions and activities of the Board ALCO are dictated by the “ALCO and Investment Committee Charter” of the Company Board of Directors (the “Charter”). The Board ALCO has -49-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

established policy limits for changes of net interest income and the economic value of equity under various scenarios and liquidity risk limits to ensure the Company has sufficient liquid assets to meet its short-term obligations, even during periods of financial stress and is reviewed no less frequently than quarterly. The ALCO policy and oversight is interconnected to the Company’s capital plan.

The Board ALCO reviews simulations of various interest rate scenarios to assess the potential impact on the Company’s balance sheet and income statement. The model employed by the Company uses a statistic balance sheet as of the date the modeling is being generated. The limitation to this model is that unexpected events may not be captured in the output. The model is validated no less frequently than annually with the variables in the model subjected to annual stress tests. In addition, the interest rate risk model is back-tested no less frequently than annually to ensure the model remains consistent with actual results. The information from the interest rate risk modeling allows the Board ALCO to assess the potential impact of interest rate changes on the Company’s profitability and future earnings.

The interest rate risk scenarios affect the position the Company may take with the pricing of assets and liabilities.

Models are inherently imperfect and subject to assumptions and limitations.  The model output is affected by the data quality and the assumptions used.  The Company uses both internal and external inputs into the model. The market interest rates are obtained from the Federal Reserve World Interest Rate Probabilities (“WIRP”) curve and may be adjusted by the management level ALCO committee (“Management ALCO”); the change in deposit betas is based upon deposit studies completed by an independent third party; loan prepayment assumptions are based upon internal analysis; loan origination data is Company generated; and additions to assets and liabilities is derived from the budget or forecast or internally generated projected cash flows.

There was no material change in the source of the data used in our interest rate risk modeling in the current period. Current economic factors such as interest rate forecasts as changed from period over period may affect the modeling. Key assumptions include deposit betas and loan origination yields. Deposit betas vary by product and direction of interest rates. In an upward shock, weighted average deposit betas (based on period end balances) were 69% at March 31, 2026 and 70% at March 31, 2025. In a downward shock, weighted average deposit betas (based on period end balances) were 62% at March 31, 2026 and 61% at March 31, 2025. Loan origination yields vary by product and the weighted average yield (based on period end loan balances) was 6.19% at March 31, 2026 compared to 6.99% at March 31, 2025.

Management ALCO, which consists of representatives from treasury, finance, business units, and senior management, oversees the interest rate risk, liquidity risk and capital risk while providing regular reports to the Board ALCO. These reports quantify the potential changes in net interest income and economic value of equity through various rate scenarios.  The Management ALCO also provides the results of the liquidity stress test prepared by the Chief Risk Officer, the sensitivity analyses of the interest rate risk model variables, and the capital position of the Company and the Bank.

Economic Value of Equity Analysis. The Consolidated Statements of Financial Condition have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), which require the measurement of financial position and operating results in terms of historical dollars without considering the changes in fair value of certain investments due to changes in interest rates. Generally, the fair value of financial investments such as loans and securities fluctuate inversely with changes in interest rates. As a result, increases in interest rates could result in decreases in the fair value of the Company’s interest-earning assets which could adversely affect the Company’s results of operations if such assets were sold, or, in the case of securities classified as available for sale, decreases in the Company’s stockholders’ equity, if such securities were retained. -50-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

The Company quantifies the net portfolio value should interest rates immediately go up or down 100 or 200 basis points, assuming the yield curves of the rate shocks will be parallel to each other. Net portfolio value is defined as the market value of assets less the market value of liabilities. The market value of assets and liabilities is determined using a discounted cash flow calculation. The net portfolio value ratio is the ratio of the net portfolio value to the market value of assets. The changes in value are measured as percentage changes from the net portfolio value at the base interest rate scenario. The base interest rate scenario assumes interest rates at March 31, 2026. Various estimates regarding prepayment assumptions are made at each level of rate shock. At March 31, 2026, the Company was within the guidelines set forth by the Board of Directors for each interest rate level.

​

The following table presents the change in the Company’s net portfolio value and the net portfolio ratio for the following periods:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	Projected Percentage Change In						​	​	​	​	​	​
​	Net Portfolio Value (NPV)						​	Net Portfolio Value Ratio
​	​	March 31,	​	​	March 31,	​	​	March 31,	​	​	March 31,	​
Change in Interest Rate	​	2026	​	​	2025	​	​	2026	​	​	2025	​
-200 Basis points	​	6.7	%	​	4.2	%	​	10.7	%	​	9.2	%
-100 Basis points	​	3.2	​	​	1.8	​	​	10.6	​	​	9.1	​
Base interest rate	​	-	​	​	-	​	​	10.4		​	9.1
+100 Basis points	​	(5.9)	​	​	(5.0)	​	​	10.0		​	8.8
+200 Basis points	​	(12.7)	​	​	(10.8)	​	​	9.4		​	8.4

​

Income Simulation Analysis. The Company manages the mix of interest-earning assets and interest-bearing liabilities on a continuous basis to maximize return and adjust its exposure to interest rate risk. The starting point for the net interest income simulation is an estimate of the next twelve months’ net interest income, assuming that both interest rates and the Company’s interest-sensitive assets and liabilities remain at period-end levels. The report quantifies the potential changes in net interest income should interest rates go up or down 100 or 200 basis points (shocked), assuming the yield curves of the rate shocks will be parallel to each other. All changes in income are measured as percentage changes from the projected net interest income at the base interest rate scenario. The base interest rate scenario assumes interest rates at March 31, 2026 and 2025. Prepayment penalty income is excluded from this analysis. Actual results could differ significantly from these estimates. At March 31, 2026, the Company was within the guidelines set forth by the Board of Directors for each interest rate level.

The following table presents the Company’s interest rate shock as of March 31:

​	​	​	​	​	​	​
​	​	Projected Percentage Change in Net Interest Income				​
Change in Interest Rate	​	2026		​	2025
-200 Basis points	​	3.7	%	​	(1.5)	%
-100 Basis points	​	1.3	​	​	(1.2)	​
Base interest rate	​	-	​	​	-	​
+100 Basis points	​	(5.3)	​	​	(3.4)	​
+200 Basis points	​	(10.6)	​	​	(7.8)	​

​

Another net interest income simulation assumes that changes in interest rates change gradually in equal increments over the twelve-month period. Prepayment penalty income is excluded from this analysis. Based on these assumptions, net interest income would be reduced by 6.2% from a 200 basis point increase in rates over the next twelve months and a 2.3% increase from a 200 basis point decrease in rate over the same period. Actual results could differ significantly from these estimates.

​

At March 31, 2026, the Company had a derivative portfolio with a notional value totaling $2.8 billion. This portfolio is designed to provide protection against rising interest rates. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements. -51-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

AVERAGE BALANCES

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the relative amount of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them. The following table sets forth certain information relating to the Company’s Consolidated Statements of Financial Condition and Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025, and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods shown. Average balances are derived from average daily balances. The yields include amortization of fees and costs, which are considered adjustments to yields.

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the three months ended March 31,
​	​	2026							​	2025							​
​	​	Average		​	​	​	​	Yield/	​	Average		​	​	​	​	Yield/	​
​	​ ​ ​	Balance		​ ​ ​	Interest		​ ​ ​	Cost	​ ​ ​	Balance		​ ​ ​	Interest		​ ​ ​	Cost	​ ​ ​
​	​	(Dollars in thousands)
Assets	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-earning assets:		​	​		​	​		​		​	​		​	​		​
Loans held for sale	​	$	—	​	$	—		—	%	$	64,085	​	$	664		4.14	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Mortgage loans, net	​	$	5,119,895	​	$	71,972		5.62	%	$	5,261,261	​	$	72,391		5.50	%
Other loans, net	​		1,419,758	​		19,671		5.54	​		1,410,661	​		19,977		5.66	​
Total loans, net ^(1) (2)^	​		6,539,653	​		91,643		5.61	​		6,671,922	​		92,368		5.54	​
Taxable securities:	​		​	​		​		​	​		​	​		​		​	​
Mortgage-backed securities	​		943,977	​		11,855		5.02	​		895,097	​		12,528		5.60	​
Other securities	​		549,052	​		7,380		5.38	​		585,219	​		8,553		5.85	​
Total taxable securities	​		1,493,029	​		19,235		5.15	​		1,480,316	​		21,081		5.70	​
Tax-exempt securities: ^(3)^	​		​	​		​		​	​		​	​		​		​	​
Other securities	​		42,518	​		443		4.17	​		43,813	​		456		4.16	​
Total tax-exempt securities	​		42,518	​		443		4.17	​		43,813	​		456		4.16	​
Interest-earning deposits and federal funds sold	​		217,759	​		1,782		3.27	​		208,777	​		2,063		3.95	​
Total interest-earning assets	​		8,292,959	​		113,103		5.46	​		8,468,913	​		116,632		5.51	​
Other assets	​		533,526	​		​		​	​		546,967	​		​		​	​
Total assets	​	$	8,826,485	​	​	​	​	​	​	$	9,015,880	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing liabilities:	​		​	​		​	​	​	​		​	​		​	​	​	​
Deposits:	​		​	​		​	​	​	​		​	​		​	​	​	​
Savings accounts	​	$	96,917	​		88	​	0.36	​	$	98,224	​		110	​	0.45	​
NOW accounts	​		2,265,480	​		17,379	​	3.07	​		2,215,683	​		18,915	​	3.41	​
Money market accounts	​		1,813,291	​		15,074	​	3.33	​		1,716,358	​		15,372	​	3.58	​
Certificates of deposit accounts	​		2,265,312	​		20,169	​	3.56	​		2,596,714	​		22,710	​	3.50	​
Total due to depositors	​		6,441,000	​		52,710	​	3.27	​		6,626,979	​		57,107	​	3.45	​
Mortgagors' escrow accounts	​		85,508	​		113	​	0.53	​		78,655	​		67	​	0.34	​
Total interest-bearing deposits	​		6,526,508	​		52,823	​	3.24	​		6,705,634	​		57,174	​	3.41	​
Borrowings	​		448,230	​		4,993	​	4.46	​		555,466	​		6,373	​	4.59	​
Total interest-bearing liabilities	​		6,974,738	​		57,816	​	3.32	​		7,261,100	​		63,547	​	3.50	​
Non interest-bearing demand deposits	​		965,817	​		​	​	​	​		855,322	​		​	​	​	​
Other liabilities	​		170,785	​		​	​	​	​		167,866	​		​	​	​	​
Total liabilities	​		8,111,340	​		​	​	​	​		8,284,288	​		​	​	​	​
Equity	​		715,145	​		​	​	​	​		731,592	​		​	​	​	​
Total liabilities and equity	​	$	8,826,485	​	​	​	​	​	​	$	9,015,880	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest income / net interest rate spread ^(4)^	​	​	​	​	$	55,287	​	2.14	%	​	​	​	$	53,085	​	2.01	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest-earning assets / net interest margin ^(5)^	​	$	1,318,221	​		​	​	2.67	%	$	1,207,813	​		​	​	2.51	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ratio of interest-earning assets to interest-bearing liabilities				​		​	​	1.19	X		​	​		​	​	1.17	X

(1) Loan interest income includes loan fee income (expense) (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.4 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively.

(2) Loan interest income includes net gains (losses) from fair value adjustments on hedges of $34 thousand and $0.1 million for three months ended March 31, 2026 and 2025, respectively.

(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $0.1 million each for the three months ended March 31, 2026 and 2025. -52-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

LOANS HELD FOR INVESTMENT

The following table sets forth the Company’s loan originations (including the net effect of refinancing) and the changes in the Company’s portfolio of loans held for investment, including purchases, sales and principal reductions for the periods indicated.

​

​	​	​	​	​	​	​
​	​	For the three months ended March 31,
(In thousands)	​ ​ ​	2026		​ ​ ​	2025
Mortgage Loans		​	​		​	​
At beginning of period	​	$	5,226,443	​	$	5,316,249
Mortgage loans originated:	​		​	​		​
Multi-family residential	​		47,784	​		21,183
Commercial real estate	​		21,922	​		22,916
One-to-four family mixed-use property	​		4,302	​		1,842
One-to-four family residential	​		289	​		58
Construction	​		4,043	​		3,275
Total mortgage loans originated	​		78,340	​		49,274
​	​	​	​	​	​	​
Mortgage loans purchased:	​		​	​		​
One-to-four family residential	​		—	​		35,148
Total mortgage loans purchased	​		—	​		35,148
​	​	​	​	​	​	​
Less:	​		​	​		​
Principal reductions	​		173,225	​		77,881
Loans transferred to (from) loans held for sale	​		—	​		(2,654)
Mortgage loan sales	​		5,559	​		5,573
Charge-offs	​		936	​		5
At end of period	​	$	5,125,063	​	$	5,319,866
​	​	​	​	​	​	​
Commercial business loans	​		​	​		​
At beginning of period	​	$	1,413,376	​	$	1,421,527
Loans originated:	​		​	​		​
Small Business Administration	​		5,510	​		1,250
Commercial business	​	​	43,218	​	​	64,621
Other	​		488	​		589
Total commercial business and other loans originated	​		49,216	​		66,460
​	​	​	​	​	​	​
Commercial business loans purchased:	​		​	​		​
Commercial business	​		33,951	​		23,194
Total commercial business loans purchased	​		33,951	​		23,194
​	​	​	​	​	​	​
Less:	​		​	​		​
Small Business Administration sales	​	​	494	​	​	5,402
Principal reductions	​		72,334	​		90,003
Charge-offs	​		116	​		4,466
At end of period	​	$	1,423,599	​	$	1,411,310

​

​ -53-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

NON-PERFORMING ASSETS

​

​

The following table shows the principal balance of our non-performing assets at the periods indicated:

​

​	​	​	​	​	​	​	​
​	​	At March 31,		​	At December 31,		​
(Dollars in thousands)		2026		​	2025		​
Non-accrual mortgage loans:	​		​	​		​	​
Multi-family residential	​	$	13,006	​	$	10,214	​
Commercial real estate	​	​	18,339	​	​	21,786	​
One-to-four family mixed-use property	​		—	​		236	​
One-to-four family residential	​		1,707	​		1,838	​
Total	​		33,052	​		34,074	​
​	​		​	​		​	​
Non-accrual commercial business loans:	​		​	​	​	​	​
Small Business Administration	​		1,064	​		554	​
Commercial Business and other	​		16,439	​		6,936	​
Total	​		17,503	​		7,490	​
Total non-accrual loans	​	​	50,555	​	​	41,564	​
​	​		​	​		​	​
Total non-performing loans	​		50,555	​		41,564	​
Other non-performing assets:	​	​	​	​	​	​	​
Available for sale securities	​	​	17,614	​	​	17,261	​
Total	​		17,614	​		17,261	​
​	​	​	​	​	​	​	​
Total non-performing assets	​	$	68,169	​	$	58,825	​
​	​	​	​	​	​	​	​
Non-performing loans to gross loans	​	​	0.77	%	​	0.63	%
Non-performing assets to total assets	​	​	0.77	%	​	0.68	%

​

​

CRITICIZED AND CLASSIFIED ASSETS

Our policy is to review our assets, focusing primarily on the loan portfolio, other real estate owned, and the investment portfolio, to ensure that credit quality is maintained at the highest levels. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements for a description of how loans are determined to be criticized or classified and a table displaying criticized and classified loans at March 31, 2026. The amortized cost of Criticized and Classified assets was $120.2 million at March 31, 2026, an increase of $19.2 million from $101.0 million at December 31, 2025.

Included within net loans at March 31, 2026 and December 31, 2025, were $1.7 million and $2.1 million, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

​

​

​

​ -54-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

ALLOWANCE FOR CREDIT LOSSES

The following table shows allowance for credit losses at the period indicated:

​

​	​	​	​	​	​	​
​	​	For the three months ended March 31,
(In thousands)	​	​	2026	​	​	2025
Balance at beginning of period	​	$	42,802	​	$	40,152
Loans- charge-off	​	​	(1,052)	​	​	(4,471)
Loans- recovery	​	​	532	​	​	44
Loans- provision (benefit)	​	​	2,168	​	​	4,312
Allowance for credit losses - loans	​	$	44,450	​	$	40,037
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Balance at beginning of period	​	$	348	​	$	353
HTM securities (benefit) provision	​	​	(10)	​	​	6
Allowance for credit losses - HTM securities	​	$	338	​	$	359
​	​	​	​	​	​	​
Balance at beginning of period	​	$	2,921	​	$	2,627
AFS securities (benefit) provision	​	​	(147)	​	​	—
Allowance for credit losses - AFS securities	​	$	2,774	​	$	2,627
​	​	​	​	​	​	​
​	​	​	​	​	​	​
Balance at beginning of period	​	$	1,733	​	$	1,037
Off-balance sheet- (benefit) provision	​	​	111	​	​	337
Allowance for credit losses - off-balance sheet	​	$	1,844	​	$	1,374
​	​	​	​	​	​	​
Allowance for credit losses	​	$	49,406	​	$	44,397

​ -55-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

The following table sets forth the activity in the Company’s ACL - loans for the periods indicated:

​

​	​	​	​	​	​	​	​
​	​	For the three months ended March 31,					​
(Dollars in thousands)	​ ​ ​	2026		​ ​ ​	2025		​
Balance at beginning of year	​	$	42,802	​	$	40,152	​
Provision (benefit) for credit losses	​		2,168	​		4,312	​
​	​	​	​	​	​	​	​
Loans charged-off:	​		​	​		​	​
Multi-family residential	​	​	(173)	​	​	—	​
Commercial real estate	​	​	(616)	​	​	—	​
One-to-four family - residential	​	​	(147)	​	​	(5)	​
Commercial business and other	​		(116)	​		(4,466)	​
Total loans charged-off	​		(1,052)	​		(4,471)	​
​	​	​	​	​	​	​	​
Recoveries:	​		​	​		​	​
Multi-family residential	​		1	​		—	​
One-to-four family - residential	​	​	—	​	​	1	​
Small Business Administration	​	​	—	​	​	40	​
Commercial business and other	​	​	531	​	​	3	​
Total recoveries	​		532	​		44	​
​	​	​	​	​	​	​	​
Net (charge-offs) recoveries	​		(520)	​		(4,427)	​
Balance at end of year	​	$	44,450	​	$	40,037	​
​	​	​	​	​	​	​	​
Ratio of net charge-offs to average loans outstanding during the period	​		0.03	%		0.27	%
Ratio of ACL - loans to gross loans at end of period	​		0.68	%		0.59	%
Ratio of ACL - loans to non-accrual loans at end of the period	​	​	87.92	%		86.54	%
Ratio of ACL - loans to non-performing loans at end of period	​		87.92	%		86.54	%

​

​

​

​ -56-

Table of Contents

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the qualitative and quantitative disclosures about market risk, see the information under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk."

​

ITEM 4.       CONTROLS AND PROCEDURES

The Company carried out, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2026, the design and operation of these disclosure controls and procedures were effective. During the period covered by this Quarterly Report, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

​

​

​ -57-

Table of Contents ITEM 1.       LEGAL PROCEEDINGS

The Company is a defendant in various lawsuits. Management of the Company, after consultation with outside legal counsel, believes that the resolution of these various matters will not result in any material adverse effect on the Company’s consolidated financial condition, results of operations and cash flows.

​

ITEM 1A.     RISK FACTORS

There have been no material changes from the risk factors disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2025.

​

​

​

ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding the shares of common stock repurchased by the Company during the three months ended March 31, 2026:

​

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	​ ​ ​	​ ​ ​	​	​	​ ​ ​	​ ​ ​	​ ​ ​	Maximum
​	​	​	​	​	​	​	Total Number of	​	Number of
​	​	Total	​	​	​	​	Shares Purchased	​	Shares That May
​	​	Number	​	​	​	​	as Part of Publicly	​	Yet Be Purchased
​	​	of Shares	​	Average Price		​	Announced Plans	​	Under the Plans
Period	​	Purchased	​	Paid per Share		​	or Programs	​	or Programs
January 1 to January 31, 2026	​	—	​	​	—	​	—	​	807,964
February 1 to February 28, 2026	​	—	​	​	—	​	—	​	807,964
March 1 to March 31, 2026	​	—	​	​	—	​	—	​	807,964
Total		—	​	$	—		—	​	​

​

During the quarter ended March 31, 2026, the Company did not repurchase any shares of the Company’s common stock. On March 31, 2026, 807,964 shares remained to be repurchased under the currently authorized stock repurchase programs. Stock will be purchased under the current stock repurchase programs from time to time, in the open market or through private transactions, subject to market conditions. There is no expiration or maximum dollar amount under these authorizations.

​

ITEM 3.       DEFAULTS UPON SENIOR SECURITIES

None.

​

ITEM 4.        MINE SAFETY DISCLOSURES

Not applicable.

​

ITEM 5.       OTHER INFORMATION

None. -58-

Table of Contents ITEM 6.       EXHIBITS

​	​	​
Exhibit No.	​ ​ ​	Description
​	​	​
3.1 P	​	Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488)
3.2	​	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 4.2 filed with Form S-8 filed May 31, 2002)
3.3	​	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.3 filed with Form 10-K for the year ended December 31, 2011)
3.4	​	Amended and Restated By-Laws of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.6 filed with Form 10-Q for the quarter ended June 30, 2014)
4.1	​	Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.1 filed with Form 8-K filed November 22, 2021)
4.2	​	First Supplemental Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed November 22, 2021)
4.3	​	Second Supplemental Indenture, dated August 24, 2022, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed August 24, 2022)
4.4	​	Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation's total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
31.1	​	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (filed herewith)
31.2	​	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (filed herewith)
32.1	​	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Executive Officer (furnished herewith)
32.2	​	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Financial Officer (furnished herewith)
101.INS	​	Inline XBRL Instance Document -the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	​	Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	​	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	​	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB	​	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	​	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
104	​	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

P     Indicates a filing submitted in paper.

​ -59-

Table of Contents FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

EXHIBIT INDEX

​	​	​
Exhibit No.	​ ​	Description
​	​	​
3.1 P	​	Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488)
3.2	​	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 4.2 filed with Form S-8 filed May 31, 2002)
3.3	​	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.3 filed with Form 10-K for the year ended December 31, 2011)
3.4	​	Amended and Restated By-Laws of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.6 filed with Form 10-Q for the quarter ended June 30, 2014)
4.1	​	Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.1 filed with Form 8-K filed November 22, 2021)
4.2	​	First Supplemental Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed November 22, 2021)
4.3	​	Second Supplemental Indenture, dated August 24, 2022, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed August 24, 2022)
4.4	​	Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation's total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
31.1	​	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (filed herewith)
31.2	​	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (filed herewith)
32.1	​	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Executive Officer (furnished herewith)
32.2	​	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Financial Officer (furnished herewith)
101.INS	​	Inline XBRL Instance Document -the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	​	Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	​	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	​	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB	​	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	​	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
104	​	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

P     Indicates a filing submitted in paper.

​

​

​ -60-

Table of Contents FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

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 thereunto duly authorized.

​

​		​ ​ ​	Flushing Financial Corporation,
​		​	​
​		​	​
​		​	​
Dated:	May 11, 2026	​	By:	/s/John R. Buran
​		​	​	John R. Buran
​		​	​	President and Chief Executive Officer
​		​	​
​		​	​
​		​	​
Dated:	May 11, 2026	​	By:	/s/Susan K. Cullen
​		​	​	Susan K. Cullen
​		​	​	Senior Executive Vice President, Treasurer and
​		​	​	Chief Financial Officer

​

​

​

​

​

​

​ -61-

Exhibit 31.1

​

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

​

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

​

I, John R. Buran, certify that:

​

1. I have reviewed this quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

​

Date:   May 11, 2026	​ ​ ​	By:	/s/John R. Buran
​	​	​	John R. Buran
​	​	​	President and Chief Executive Officer

​

Exhibit 31.2

​

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

​

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

​

I, Susan K. Cullen, certify that:

​

1. I have reviewed this quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

​

Date:   May 11, 2026	​ ​ ​	By:	/s/Susan K. Cullen
​	​	​	Susan K. Cullen
​	​	​	Senior Executive Vice President and Chief
​	​	​	Financial Officer

​

Exhibit 32.1

​

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

​

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

​

In connection with the Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John R. Buran, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

​

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

​

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

​

By:	/s/John R. Buran	​
​	John R. Buran	​
​	Chief Executive Officer	​
​	May 11, 2026	​

​

Exhibit 32.2

​

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

​

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

​

In connection with the Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Susan K. Cullen, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

​

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

​

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

​

​	​	​
By:	/s/Susan K. Cullen	​
​	Susan K. Cullen	​
​	Chief Financial Officer	​
​	May 11, 2026	​

​