Flushing Financial Corporation Reports 3Q24 GAAP and Core EPS of $0.30 and $0.26, Respectively; Net Interest Income and NIM Increased QoQ

Topic:

"Our third quarter had several positive trends that demonstrate our commitment to improve profitability over the long term. GAAP and Core EPS were $0.30 and $0.26, respectively, the best quarter in the past seven, including non-recurring items. GAAP and Core NIM increased by 5 and 4 bps QoQ to 2.10% and 2.07%, respectively, as the cost of funds peaked in July decreasing in August and September. As a result, NIM bottomed in July then increased in August and September. Credit quality remains solid with a sequential decline in NPAs and criticized and classified assets. Our underwriting remains very strong with a weighted average DCR of 1.9x for our multifamily and CRE portfolios and only 0.5% of exposure to Manhattan office buildings. The Company has $3.9 billion of unused lines of credit available as of September 30, 2024. Average total deposits increased 9% YoY and 4% QoQ. The Company and the Bank remain well capitalized under regulatory standards. Year to date, GAAP and Core noninterest expense growth was approximately 6%, which includes investments in the business including new employees and branches that should enhance our long term profitability over time. While there is more work to do, we are pleased with the direction and execution on our areas of focus."

- John R. Buran, President and CEO

UNIONDALE, NY / ACCESSWIRE / October 24, 2024 / Period End Loans and Average Total Deposits Increase QoQ. Third quarter 2024 GAAP and Core EPS were $0.30 and $0.26, compared to $0.26, and $0.25, respectively, a year ago. Insurance recoveries, discrete income tax items, and other events added $0.05 per share to 3Q24 EPS, while net interest recoveries on delinquent loans added another $0.03 per share. 3Q24 GAAP and Core NIM were 2.10% and 2.07%, up 5 bps and 4 bps QoQ, respectively. Average total deposits increased 9.4% YoY and 3.7% QoQ, while period end net loans increased 0.6% QoQ, but declined 1.2% YoY. This was the first QoQ increase in net loans since 4Q23 (0.1%).

Strong Credit Quality: Capital Remains Solid. Credit quality metrics were at favorable levels with criticized and classified loans to gross loans of 100 bps (down 13 bps QoQ), nonperforming assets to total assets of 59 bps (down 2 bps QoQ), and year to date net charge-offs of 6 bps. Capital continues to be sound with TCE/TA¹ of 7.00% at 3Q24.

Key Financial Metrics²

		3Q24		2Q24			1Q24		4Q23		3Q23		9M24		9M23
GAAP:
EPS	$	0.30	$	0.18		$	0.12	$	0.27	$	0.26	$	0.60	$	0.69
ROAA (%)		0.39		0.24			0.17		0.38		0.37		0.27		0.32
ROAE (%)		5.30		3.19			2.20		4.84		4.64		3.57		4.05
NIM FTE³ (%)		2.10		2.05			2.06		2.29		2.22		2.07		2.22
Core:
EPS	$	0.26	$	0.18		$	0.14	$	0.25	$	0.25	$	0.59	$	0.58
ROAA (%)		0.34		0.25			0.20		0.35		0.36		0.26		0.27
ROAE (%)		4.59		3.27			2.58		4.51		4.49		3.48		3.42
Core NIM FTE (%)		2.07		2.03			2.06		2.31		2.13		2.05		2.18
Credit Quality:
NPAs/Loans & OREO (%)		0.81		0.82			0.68		0.67		0.56		0.81		0.56
ACLs/Loans (%)		0.59		0.61			0.60		0.58		0.57		0.59		0.57
ACLs/NPLs (%)		117.75		120.58			164.13		159.55		225.38		117.75		225.38
NCOs/Avg Loans (%)		0.18		(0.01	)		-		-		-		0.06		0.21
Balance Sheet:
Avg Loans ($B)	$	6.7	$	6.7		$	6.8	$	6.9	$	6.8	$	6.8	$	6.8
Avg Dep ($B)	$	7.5	$	7.2		$	7.1	$	6.9	$	6.8	$	7.2	$	6.8
Book Value/Share	$	22.94	$	22.89		$	23.04	$	23.21	$	23.06	$	22.94	$	23.06
Tangible BV/Share	$	22.29	$	22.24		$	22.39	$	22.54	$	22.39	$	22.29	$	22.39
TCE/TA (%)		7.00		7.12			7.40		7.64		7.56		7.00		7.56

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.
¹ Tangible Common Equity ("TCE")/Total Assets ("TA"). ² See "Reconciliation of GAAP Earnings and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Margin to Core Net Interest Income and Net Interest Margin." ³ Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").

3Q24 Highlights

Net interest margin FTE decreased 12 bps YoY and increased 5 bps QoQ to 2.10%; Core net interest margin FTE decreased 6 bps YoY, but increased 4 bps QoQ to 2.07%; Net reversals and recovered interest from delinquent loans totaled $1.1 million and added 5 bps to the GAAP and Core NIM in 3Q24; After bottoming in July, the NIM expanded in both August and September
Average total deposits increased 9.4% YoY and 3.7% QoQ to $7.5 billion; Average noninterest bearing deposits declined 0.7% YoY but increased 2.7% QoQ and totaled 11.3% of total average deposits compared to 12.5% in 3Q23 and 11.4% in 2Q24. Average CDs were $2.9 billion, up 25.9% YoY and 18.1% QoQ
Period end net loans decreased 1.2% YoY, but increased 0.6% QoQ to $6.8 billion; Loan closings were $217.1 million, down 10.1% YoY, but up 72.3% QoQ; The yields on closings increased 3 bps YoY, but decreased 26 bps QoQ to 7.51%; Back-to-back swap loan originations were $38.5 million compared to $27.4 million in 2Q24 and generated $0.6 million and $0.5 million of noninterest income, respectively; Loan pipeline decreased 19.4% YoY and 10.6% QoQ to $293.0 million; Approximately 20% of the loan pipeline consists of back-to-back swap loans
NPAs totaled $54.9 million (59 bps of assets) in 3Q24 compared to $38.4 million (45 bps) a year ago and $55.8 million (61 bps) in the prior quarter
Year to date noninterest expense growth was 6.3%, while core noninterest expense growth was 5.9%; The Company remains on target to have core noninterest expense growth of mid-single digits for 2024
Provision for credit losses was $1.7 million in 3Q24 compared to $0.6 million in 3Q23 and $0.8 million in 2Q24; Net charge-offs (recoveries) were $3.0 million in 3Q24 compared to $(42,000) in 3Q23 and $(92,000) in 2Q24
Tangible Common Equity to Tangible Assets was 7.00% at September 30, 2024, compared to 7.12% at June 30, 2024; Tangible book value per share was $22.29 compared to $22.39 a year ago

Areas of Focus

Increase NIM and Reduce Volatility	GAAP and Core NIM increased by 5 bps and 4 bps QoQ, respectively, in 3Q24; Net reversals and recovered interest from delinquent loans added 5 bps to the GAAP and Core NIM in 3Q24 Approximately 26% of the loan portfolio consists of floating rate loans (including hedges) Average noninterest bearing deposits increased 2.7% QoQ and accounted for 11.3% of average total deposits
Maintain Credit Discipline	Approximately 90% of the loan portfolio is collateralized by real estate with an average loan to value of less than 36% Weighted average debt service coverage ratio is approximately 1.9x for multifamily and investor commercial real estate loans Criticized and classified loans are 1.00% of gross loans Manhattan office buildings exposure is minimal at 0.5% of gross loans
Preserve Strong Liquidity and Capital	Maintaining ample liquidity with $3.9billion of undrawn lines and resources as of September 30, 2024 Uninsured and uncollateralized deposits were 15% of total deposits, while uninsured deposits were 31% of total deposits Total average deposits increased 9.4% YoY and 3.7% QoQ Tangible Common Equity to Tangible Assets was 7.00% at September 30, 2024, down 12 bps QoQ; Leverage ratio was 7.91% at September 30, 2024, compared to 8.18% at June 30, 2024
Bend the Expense Curve	GAAP noninterest expense to average assets was 1.68% in 3Q24 compared to 1.71% in 3Q23 and 1.77% in 2Q24 GAAP and Core noninterest expense growth was 6.3% and 6.4% YoY in 3Q24, respectively, and 6.3% and 5.9% year to date, as investments were made to improve long term profitability

Income Statement Highlights

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

Net Interest Income	$	45,603	$	42,776	$	42,397	$	46,085	$	44,427		2.6	%		6.6	%
Provision for Credit Losses		1,727		809		592		998		596		189.8			113.5
Noninterest Income		6,277		4,216		3,084		7,402		3,309		89.7			48.9
Noninterest Expense		38,696		39,047		39,892		40,735		36,388		6.3			(0.9	)
Income Before Income Taxes		11,457		7,136		4,997		11,754		10,752		6.6			60.6
Provision for Income Taxes		2,551		1,814		1,313		3,655		2,917		(12.5	)		40.6
Net Income	$	8,906	$	5,322	$	3,684	$	8,099	$	7,835		13.7			67.3
Diluted EPS	$	0.30	$	0.18	$	0.12	$	0.27	$	0.26		15.4			66.7
Avg. Diluted Shares (000s)		29,742		29,789		29,742		29,650		29,703		0.1			(0.2	)

Core Net Income¹	$	7,723	$	5,456	$	4,312	$	7,546	$	7,571		2.0			41.6
Core EPS¹	$	0.26	$	0.18	$	0.14	$	0.25	$	0.25		4.0			44.4

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income increased YoY and QoQ.

Net Interest Margin FTE of 2.10% decreased 12 bps YoY, but increased 5 bps QoQ
Prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from delinquent loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $2.4 million (11 bps to NIM) in 3Q24, compared to $0.7 million (3 bps to NIM) in 2Q24, $1.0 million (5 bps to NIM) in 1Q24, $3.0 million (15 bps to NIM) in 4Q23, and $2.6 million (13 bps to NIM) in 3Q23
Excluding the items in the previous bullet, the net interest margin was 1.99% in 3Q24, compared to 2.02% in 2Q24, 2.01% in 1Q24, 2.14% in 4Q23, and 2.09% in 3Q23

The provision for credit losses increased YoY and QoQ.

Net charge-offs (recoveries) were $3.0 million (18 bps of average loans) in 3Q24 compared to $(92,000) ((1) bp of average loans) in 2Q24, $4,000 (less than 1 bp of average loans) in 1Q24, $60,000 in 4Q23 (less than 1 bp of average loans), and $(42,000) in 3Q23 (less than (1) bp of average loans)

Noninterest income increased YoY and QoQ.

Back-to-back swap loan closings of $38.5 million in 3Q24 (compared to $120.5 million in 3Q23 and $27.4 million in 2Q24) generated $0.6 million of fee income (compared to $1.6 million of fee income in 3Q23 and $0.5 million in 2Q24)
Net gains (losses) from fair value adjustments were $1.0 million ($0.03 per share, net of tax) in 3Q24, $0.1 million in 2Q24 (less than $0.01 per share, net of tax), $(0.8) million in 1Q24 ($(0.02) per share, net of tax), $0.9 million in 4Q23 ($0.02 per share, net of tax), and $(1.2) million in 3Q23 ($(0.03) per share, net of tax)
Gain on life insurance proceeds were $1,000 in 3Q24 (less than $0.01 per share), $0.7 million in 4Q23 ($0.02 per share) and $23,000 in 3Q23 (less than $0.01 per share)
Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $5.3 million in 3Q24, up 17.0% YoY and 27.5% QoQ, and includes approximately $0.8 million of insurance recoveries and other items that are not expected to recur (included in other income)

Noninterest expense increased YoY but declined QoQ.

Excluding the effects of immaterial adjustments, core noninterest expenses were $38.6 million in 3Q24, up 6.4% YoY and 0.4% QoQ; YoY increases primarily relate to business investments in staff and branches and deposit insurance premiums
GAAP noninterest expense to average assets was 1.68% in 3Q24, 1.77% in 2Q24, 1.83% in 1Q24, 1.90% in 4Q23, and 1.71% in 3Q23

Provision for income taxes decreased YoY but increased QoQ.

The effective tax rate was 22.3% in 3Q24, 25.4% in 2Q24, 26.3% in 1Q24, 31.1% in 4Q23, and 27.1% in 3Q23
The effective tax rate in 3Q24 includes approximately $0.5 million of discrete tax benefits that are not expected to repeat

Balance Sheet, Credit Quality, and Capital Highlights

											YoY		QoQ
		3Q24		2Q24		1Q24		4Q23		3Q23	Change		Change
Averages ($MM)
Loans	$	6,737	$	6,748	$	6,804	$	6,868	$	6,813	(1.1	)%	(0.2	)%
Total Deposits		7,464		7,196		7,081		6,884		6,819	9.5		3.7

Credit Quality ($000s)
Nonperforming Loans	$	34,261	$	34,540	$	24,829	$	25,172	$	17,405	96.8	%	(0.8	)%
Nonperforming Assets		54,888		55,832		46,254		46,153		38,386	43.0		(1.7	)
Criticized and Classified Loans		68,338		76,485		59,021		76,719		74,169	(7.9	)	(10.7	)
Criticized and Classified Assets		88,965		97,777		80,446		97,700		95,150	(6.5	)	(9.0	)
Allowance for Credit Losses/Loans (%)		0.59		0.61		0.60		0.58		0.57	2	bps	(2	)bp

Capital
Book Value/Share	$	22.94	$	22.89	$	23.04	$	23.21	$	23.06	(0.5	)%	0.2	%
Tangible Book Value/Share		22.29		22.24		22.39		22.54		22.39	(0.4	)	0.2
Tang. Common Equity/Tang. Assets (%)		7.00		7.12		7.40		7.64		7.56	(56	)bps	(12	)bps
Leverage Ratio (%)		7.91		8.18		8.32		8.47		8.51	(60	)	(27	)

Average loans decreased slightly YoY and QoQ.

Period end net loans totaled $6.8 billion, down 1.2% YoY, but up 0.6% QoQ
Total loan closings were $217.1 million in 3Q24, $126.0 million in 2Q24, $130.0 million in 1Q24, $244.3 million in 4Q23, and $241.5 million in 3Q23; the loan pipeline was $293.0 million at September 30, 2024, down 19.4% YoY and 10.6% QoQ
The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of <36%
Manhattan office buildings exposure is minimal at 0.5% of gross loans

Average total deposits increased YoY and QoQ.

Average noninterest bearing deposits decreased 0.7% YoY, but increased 2.7% QoQ and comprised 11.3% of average total deposits in 3Q24 compared to 12.5% a year ago
Average CDs totaled $2.9 billion, up 25.9% YoY and 18.1% QoQ; approximately $647.2 million of retail CDs are due to mature at an average rate of 4.96% in 4Q24

Credit Quality: Nonperforming loans increased YoY but decreased QoQ.

Nonperforming loans were 50 bps of loans in 3Q24 compared to 25 bps in 3Q23 and 51 bps in 2Q24
Criticized and classified loans were 100 bps of gross loans at 3Q24 compared to 113 bps at 2Q24, 87 bps at 1Q24, 111 bps at 4Q23, and 108 bps at 3Q23
Allowance for credit losses were 117.7% of nonperforming loans at 3Q24 compared to 225.4% at 3Q23 and 120.6% at 2Q24

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 0.5% and 0.4% YoY to $22.94 and $22.29, respectively.

The Company paid a dividend of $0.22 per share in 3Q24; 807,964shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
Tangible common equity to tangible assets was 7.00% at September 30, 2024 compared to 7.56% at September 30, 2023, and 7.12% at June 30, 2024

Conference Call Information

Conference Call Information:

John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Friday, October 25, 2024, at 11:00 AM (ET) to discuss the Company's third quarter results and strategy.
Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=DyENTTHR
Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
Replay Access Code: 3119962
The conference call will be simultaneously webcast and archived

Fourth Quarter and Full Year 2024 Earnings Release Date:

The Company plans to release Fourth Quarter and Full Year 2024 financial results after the market close on January 28, 2025, followed by a conference call at 9:30 AM (ET) on January 29, 2025.

A detailed announcement will be issued prior to the fourth quarter's close confirming the date and the time of the earning release.

About Flushing Financial Corporation

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

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

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "goals", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. The Company has no obligation to update these forward-looking statements.

#FF

- Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

	At or for the three months ended															At or for the nine months ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Performance Ratios ⁽¹⁾
Return on average assets		0.39	%		0.24	%		0.17	%		0.38	%		0.37	%		0.27	%		0.32	%
Return on average equity		5.30			3.19			2.20			4.84			4.64			3.57			4.05
Yield on average interest-earning assets ⁽²⁾		5.63			5.43			5.32			5.39			5.19			5.46			4.88
Cost of average interest-bearing liabilities		4.10			3.95			3.83			3.68			3.52			3.96			3.16
Cost of funds		3.69			3.54			3.42			3.26			3.13			3.55			2.80
Net interest rate spread during period⁽²⁾		1.53			1.48			1.49			1.71			1.67			1.50			1.72
Net interest margin ⁽²⁾		2.10			2.05			2.06			2.29			2.22			2.07			2.22
Noninterest expense to average assets		1.68			1.77			1.83			1.90			1.71			1.76			1.74
Efficiency ratio ⁽³⁾		77.20			82.57			86.07			76.69			76.76			81.81			76.73
Average interest-earning assets to average interest-bearing liabilities		1.16	X		1.17	X		1.17	X		1.19	X		1.18	X		1.17	X		1.19	X

Average Balances
Total loans, net	$	6,737,261		$	6,748,140		$	6,804,117		$	6,867,927		$	6,813,019		$	6,763,078		$	6,837,740
Total interest-earning assets		8,709,671			8,354,994			8,235,160			8,076,991			8,023,237			8,434,283			8,005,866
Total assets		9,203,884			8,830,665			8,707,505			8,569,002			8,505,346			8,915,076			8,478,837
Total deposits		7,463,783			7,195,940			7,081,498			6,884,037			6,819,397			7,247,863			6,843,200
Total interest-bearing liabilities		7,504,517			7,140,068			7,014,927			6,813,909			6,771,860			7,220,876			6,744,342
Stockholders' equity		672,762			667,557			669,185			669,819			675,041			669,845			676,949

Per Share Data
Book value per common share ⁽⁴⁾	$	22.94		$	22.89		$	23.04		$	23.21		$	23.06		$	22.94		$	23.06
Tangible book value per common share ⁽⁵⁾	$	22.29		$	22.24		$	22.39		$	22.54		$	22.39		$	22.29		$	22.39

Stockholders' Equity
Stockholders' equity	$	666,891		$	665,322		$	669,827		$	669,837		$	666,521		$	666,891		$	666,521
Tangible stockholders' equity		648,035			646,364			650,763			650,664			647,234			648,035			647,234

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	735,984		$	733,308		$	734,192		$	737,732		$	736,744		$	735,984		$	736,744
Common equity Tier 1 capital		689,902			686,630			687,458			691,754			690,294			689,902			690,294
Total risk-based capital		967,242			965,819			965,796			967,627			965,532			967,242			965,532
Risk Weighted Assets		6,790,253			6,718,568			6,664,496			6,750,301			6,804,478			6,790,253			6,804,478

Tier 1 leverage capital (well capitalized = 5%)		7.91	%		8.18	%		8.32	%		8.47	%		8.51	%		7.91	%		8.51	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.16			10.22			10.32			10.25			10.14			10.16			10.14
Tier 1 risk-based capital (well capitalized = 8.0%)		10.84			10.91			11.02			10.93			10.83			10.84			10.83
Total risk-based capital (well capitalized = 10.0%)		14.24			14.38			14.49			14.33			14.19			14.24			14.19

Capital Ratios
Average equity to average assets		7.31	%		7.56	%		7.69	%		7.82	%		7.94	%		7.51	%		7.98	%
Equity to total assets		7.19			7.31			7.61			7.85			7.77			7.19			7.77
Tangible common equity to tangible assets ⁽⁶⁾		7.00			7.12			7.40			7.64			7.56			7.00			7.56

Asset Quality
Nonaccrual loans	$	34,261		$	34,540		$	24,829		$	23,709		$	17,405		$	34,261		$	17,405
Nonperforming loans		34,261			34,540			24,829			25,172			17,405			34,261			17,405
Nonperforming assets		54,888			55,832			46,254			46,153			38,386			54,888			38,386
Net charge-offs (recoveries)		3,036			(92	)		4			60			(42	)		2,948			8,903

Asset Quality Ratios
Nonperforming loans to gross loans		0.50	%		0.51	%		0.36	%		0.36	%		0.25	%		0.50	%		0.25	%
Nonperforming assets to total assets		0.59			0.61			0.53			0.54			0.45			0.59			0.45
Allowance for credit losses to gross loans		0.59			0.61			0.60			0.58			0.57			0.59			0.57
Allowance for credit losses to nonperforming assets		73.50			74.60			88.10			87.02			102.19			73.50			102.19
Allowance for credit losses to nonperforming loans		117.75			120.58			164.13			159.55			225.38			117.75			225.38
Net charge-offs (recoveries) to average loans		0.18			(0.01	)		-			-			-			0.06			0.17

Full-service customer facilities		28			27			27			27			27			28			27

⁽¹⁾		Ratios are presented on an annualized basis, where appropriate.
⁽²⁾		Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
⁽³⁾		Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.
⁽⁴⁾		Calculated by dividing stockholders' equity by shares outstanding.
⁽⁵⁾		Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets. See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".
⁽⁶⁾		See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	For the three months ended													For the nine months ended
	September 30,			June 30,		March 31,			December 31,		September 30,			September 30,			September 30,
(In thousands, except per share data)	2024			2024		2024			2023		2023			2024			2023
Interest and Dividend Income
Interest and fees on loans	$	95,780		$	92,728	$	92,959		$	95,616	$	91,466		$	281,467		$	259,732
Interest and dividends on securities:
Interest		24,215			18,209		12,541			10,803		10,383			54,965			26,795
Dividends		33			33		33			34		33			99			92
Other interest income		2,565			2,260		3,966			2,310		2,154			8,791			6,095
Total interest and dividend income		122,593			113,230		109,499			108,763		104,036			345,322			292,714

Interest Expense
Deposits		66,150			60,893		57,865			53,284		50,066			184,908			135,371
Other interest expense		10,840			9,561		9,237			9,394		9,543			29,638			24,276
Total interest expense		76,990			70,454		67,102			62,678		59,609			214,546			159,647

Net Interest Income		45,603			42,776		42,397			46,085		44,427			130,776			133,067
Provision for credit losses		1,727			809		592			998		596			3,128			9,520
Net Interest Income After Provision for Credit Losses		43,876			41,967		41,805			45,087		43,831			127,648			123,547

Noninterest Income
Banking services fee income		1,790			1,583		1,394			2,824		2,636			4,767			5,827
Net gain on sale of loans		137			26		110			-		-			273			108
Net gain (loss) from fair value adjustments		974			57		(834	)		906		(1,246	)		197			1,667
Federal Home Loan Bank of New York stock dividends		624			669		743			658		624			2,036			1,855
Life insurance proceeds		1			-		-			697		23			1			584
Bank owned life insurance		1,260			1,223		1,200			1,173		1,157			3,683			3,400
Other income		1,491			658		471			1,144		115			2,620			1,745
Total noninterest income		6,277			4,216		3,084			7,402		3,309			13,577			15,186

Noninterest Expense
Salaries and employee benefits		22,216			21,723		22,113			23,359		20,346			66,052			62,598
Occupancy and equipment		3,745			3,713		3,779			3,698		3,371			11,237			10,698
Professional services		2,752			2,786		2,792			2,523		2,494			8,330			7,046
FDIC deposit insurance		1,318			1,322		1,652			1,162		912			4,292			2,832
Data processing		1,681			1,785		1,727			1,646		1,422			5,193			4,330
Depreciation and amortization		1,436			1,425		1,457			1,491		1,482			4,318			4,474
Other real estate owned/foreclosure expense		135			125		145			105		185			405			500
Gain on sale of other real estate owned		(174	)		-		-			-		-			(174	)		-
Other operating expenses		5,587			6,168		6,227			6,751		6,176			17,982			18,176
Total noninterest expense		38,696			39,047		39,892			40,735		36,388			117,635			110,654

Income Before Provision for Income Taxes		11,457			7,136		4,997			11,754		10,752			23,590			28,079

Provision for income taxes		2,551			1,814		1,313			3,655		2,917			5,678			7,514

Net Income	$	8,906		$	5,322	$	3,684		$	8,099	$	7,835		$	17,912		$	20,565

Basic earnings per common share	$	0.30		$	0.18	$	0.12		$	0.27	$	0.26		$	0.60		$	0.69
Diluted earnings per common share	$	0.30		$	0.18	$	0.12		$	0.27	$	0.26		$	0.60		$	0.69
Dividends per common share	$	0.22		$	0.22	$	0.22		$	0.22	$	0.22		$	0.66		$	0.66

Basic average shares		29,742			29,789		29,742			29,650		29,703			29,758			30,017
Diluted average shares		29,742			29,789		29,742			29,650		29,703			29,758			30,017

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands)	2024			2024			2024			2023			2023
ASSETS
Cash and due from banks	$	267,643		$	156,913		$	210,723		$	172,157		$	200,926
Securities held-to-maturity:
Mortgage-backed securities		7,841			7,846			7,850			7,855			7,860
Other securities, net		63,859			64,166			64,612			65,068			65,271
Securities available for sale:
Mortgage-backed securities		926,731			869,494			509,527			354,344			337,879
Other securities		687,518			679,117			667,156			520,409			505,784
Loans		6,818,328			6,777,026			6,821,943			6,906,950			6,896,074
Allowance for credit losses		(40,342	)		(41,648	)		(40,752	)		(40,161	)		(39,228	)
Net loans		6,777,986			6,735,378			6,781,191			6,866,789			6,856,846
Interest and dividends receivable		64,369			62,752			61,449			59,018			55,660
Bank premises and equipment, net		18,544			19,426			20,102			21,273			21,302
Federal Home Loan Bank of New York stock		32,745			46,331			24,845			31,066			43,821
Bank owned life insurance		217,200			215,940			214,718			213,518			214,321
Goodwill		17,636			17,636			17,636			17,636			17,636
Core deposit intangibles		1,220			1,322			1,428			1,537			1,651
Right of use asset		44,787			46,636			37,631			39,557			41,404
Other assets		152,807			174,283			188,457			167,009			209,014
Total assets	$	9,280,886		$	9,097,240		$	8,807,325		$	8,537,236		$	8,579,375

LIABILITIES
Total deposits	$	7,572,395		$	6,906,863		$	7,253,207		$	6,815,261		$	6,681,509
Borrowed funds		846,123			1,316,565			671,474			841,281			1,001,010
Operating lease liability		45,437			47,485			38,674			40,822			43,067
Other liabilities		150,040			161,005			174,143			170,035			187,268
Total liabilities		8,613,995			8,431,918			8,137,498			7,867,399			7,912,854

STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized; none issued)		-			-			-			-			-
Common stock ($0.01 par value; 100,000,000 shares authorized)		341			341			341			341			341
Additional paid-in capital		261,274			260,585			260,413			264,534			264,486
Treasury stock		(101,633	)		(101,633	)		(101,641	)		(106,070	)		(105,433	)
Retained earnings		547,708			545,345			546,530			549,683			548,058
Accumulated other comprehensive loss, net of taxes		(40,799	)		(39,316	)		(35,816	)		(38,651	)		(40,931	)
Total stockholders' equity		666,891			665,322			669,827			669,837			666,521

Total liabilities and stockholders' equity	$	9,280,886		$	9,097,240		$	8,807,325		$	8,537,236		$	8,579,375

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)

	For the three months ended										For the nine months ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(In thousands)	2024		2024		2024		2023		2023		2024		2023
Interest-earning Assets:
Mortgage loans, net	$	5,337,170	$	5,338,614	$	5,353,606	$	5,356,112	$	5,314,215	$	5,343,108	$	5,318,616
Commercial Business loans, net		1,400,091		1,409,526		1,450,511		1,511,815		1,498,804		1,419,970		1,519,124
Total loans, net		6,737,261		6,748,140		6,804,117		6,867,927		6,813,019		6,763,078		6,837,740
Taxable securities:
Mortgage-backed securities		984,383		691,802		462,934		426,612		436,181		714,030		447,491
Other securities, net		714,161		663,975		590,204		527,316		528,091		656,325		470,898
Total taxable securities		1,698,544		1,355,777		1,053,138		953,928		964,272		1,370,355		918,389
Tax-exempt securities:
Other securities		65,070		65,451		65,939		66,242		66,438		65,485		66,631
Total tax-exempt securities		65,070		65,451		65,939		66,242		66,438		65,485		66,631
Interest-earning deposits and federal funds sold		208,796		185,626		311,966		188,894		179,508		235,365		183,106
Total interest-earning assets		8,709,671		8,354,994		8,235,160		8,076,991		8,023,237		8,434,283		8,005,866
Other assets		494,213		475,671		472,345		492,011		482,109		480,793		472,971
Total assets	$	9,203,884	$	8,830,665	$	8,707,505	$	8,569,002	$	8,505,346	$	8,915,076	$	8,478,837

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	102,196	$	103,335	$	106,212	$	110,316	$	115,437	$	103,908	$	124,736
NOW accounts		1,886,387		2,017,085		1,935,250		1,848,285		1,907,781		1,946,022		1,968,199
Money market accounts		1,673,499		1,714,085		1,725,714		1,625,453		1,584,308		1,704,320		1,797,398
Certificate of deposit accounts		2,884,280		2,443,047		2,406,283		2,340,115		2,290,669		2,578,988		2,007,954
Total due to depositors		6,546,362		6,277,552		6,173,459		5,924,169		5,898,195		6,333,238		5,898,287
Mortgagors' escrow accounts		71,965		95,532		73,822		86,592		69,525		80,408		79,136
Total interest-bearing deposits		6,618,327		6,373,084		6,247,281		6,010,761		5,967,720		6,413,646		5,977,423
Borrowings		886,190		766,984		767,646		803,148		804,140		807,230		766,919
Total interest-bearing liabilities		7,504,517		7,140,068		7,014,927		6,813,909		6,771,860		7,220,876		6,744,342
Noninterest-bearing demand deposits		845,456		822,856		834,217		873,276		851,677		834,217		865,777
Other liabilities		181,149		200,184		189,176		211,998		206,768		190,138		191,769
Total liabilities		8,531,122		8,163,108		8,038,320		7,899,183		7,830,305		8,245,231		7,801,888
Equity		672,762		667,557		669,185		669,819		675,041		669,845		676,949
Total liabilities and equity	$	9,203,884	$	8,830,665	$	8,707,505	$	8,569,002	$	8,505,346	$	8,915,076	$	8,478,837

Net interest-earning assets	$	1,205,154	$	1,214,926	$	1,220,233	$	1,263,082	$	1,251,377	$	1,213,407	$	1,261,524

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST INCOME AND NET INTEREST MARGIN
(Unaudited)

	For the three months ended															For the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2024			2023			2023			2024			2023
Interest Income:
Mortgage loans, net	$	74,645		$	71,968		$	71,572		$	72,505		$	68,931		$	218,185		$	194,673
Commercial Business loans, net		21,135			20,760			21,387			23,111			22,535			63,282			65,059
Total loans, net		95,780			92,728			92,959			95,616			91,466			281,467			259,732
Taxable securities:
Mortgage-backed securities		12,443			7,462			3,696			3,217			3,031			23,601			8,288
Other securities		11,431			10,408			8,504			7,239			7,003			30,343			17,461
Total taxable securities		23,874			17,870			12,200			10,456			10,034			53,944			25,749
Tax-exempt securities:
Other securities		474			470			474			482			484			1,418			1,441
Total tax-exempt securities		474			470			474			482			484			1,418			1,441
Interest-earning deposits and federal funds sold		2,565			2,260			3,966			2,310			2,154			8,791			6,095
Total interest-earning assets		122,693			113,328			109,599			108,864			104,138			345,620			293,017
Interest Expense:
Deposits:
Savings accounts	$	122		$	115		$	122		$	124		$	130		$	359		$	396
NOW accounts		18,795			20,007			18,491			17,411			16,843			57,293			46,780
Money market accounts		17,485			17,326			17,272			15,785			14,386			52,083			43,113
Certificate of deposit accounts		29,676			23,383			21,918			19,917			18,639			74,977			44,927
Total due to depositors		66,078			60,831			57,803			53,237			49,998			184,712			135,216
Mortgagors' escrow accounts		72			62			62			47			68			196			155
Total interest-bearing deposits		66,150			60,893			57,865			53,284			50,066			184,908			135,371
Borrowings		10,840			9,561			9,237			9,394			9,543			29,638			24,276
Total interest-bearing liabilities		76,990			70,454			67,102			62,678			59,609			214,546			159,647
Net interest income- tax equivalent	$	45,703		$	42,874		$	42,497		$	46,186		$	44,529		$	131,074		$	133,370
Included in net interest income above:
Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and customer swap terminations fees	$	1,647		$	369		$	928		$	3,416		$	857		$	2,944		$	1,852
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income		554			177			(187	)		(872	)		1,348			544			1,243
Purchase accounting adjustments		155			182			271			461			347			608			993
Interest-earning Assets Yields:
Mortgage loans, net		5.59	%		5.39	%		5.35	%		5.41	%		5.19	%		5.44	%		4.88	%
Commercial Business loans, net		6.04			5.89			5.90			6.11			6.01			5.94			5.71
Total loans, net		5.69			5.50			5.46			5.57			5.37			5.55			5.06
Taxable securities:
Mortgage-backed securities		5.06			4.31			3.19			3.02			2.78			4.41			2.47
Other securities		6.40			6.27			5.76			5.49			5.30			6.16			4.94
Total taxable securities		5.62			5.27			4.63			4.38			4.16			5.25			3.74
Tax-exempt securities: ⁽¹⁾
Other securities		2.91			2.87			2.88			2.91			2.91			2.89			2.88
Total tax-exempt securities		2.91			2.87			2.88			2.91			2.91			2.89			2.88
Interest-earning deposits and federal funds sold		4.91			4.87			5.09			4.89			4.80			4.98			4.44
Total interest-earning assets⁽¹⁾		5.63	%		5.43	%		5.32	%		5.39	%		5.19	%		5.46	%		4.88	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.48	%		0.45	%		0.46	%		0.45	%		0.45	%		0.46	%		0.42	%
NOW accounts		3.99			3.97			3.82			3.77			3.53			3.93			3.17
Money market accounts		4.18			4.04			4.00			3.88			3.63			4.07			3.20
Certificate of deposit accounts		4.12			3.83			3.64			3.40			3.25			3.88			2.98
Total due to depositors		4.04			3.88			3.75			3.59			3.39			3.89			3.06
Mortgagors' escrow accounts		0.40			0.26			0.34			0.22			0.39			0.33			0.26
Total interest-bearing deposits		4.00			3.82			3.70			3.55			3.36			3.84			3.02
Borrowings		4.89			4.99			4.81			4.68			4.75			4.90			4.22
Total interest-bearing liabilities		4.10	%		3.95	%		3.83	%		3.68	%		3.52	%		3.96	%		3.16	%

Net interest rate spread (tax equivalent)⁽¹⁾		1.53	%		1.48	%		1.49	%		1.71	%		1.67	%		1.50	%		1.72	%
Net interest margin (tax equivalent)⁽¹⁾		2.10	%		2.05	%		2.06	%		2.29	%		2.22	%		2.07	%		2.22	%
Ratio of interest-earning assets to interest-bearing liabilities		1.16	X		1.17	X		1.17	X		1.19	X		1.18	X		1.17	X		1.19	X

⁽¹⁾ Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT and LOAN COMPOSITION
(Unaudited)

Deposit Composition

											3Q24 vs. 2Q24			3Q24 vs. 3Q23
	September 30,		June 30,		March 31,		December 31,		September 30,		3Q24 vs. 2Q24			3Q24 vs. 3Q23
(Dollars in thousands)	2024		2024		2024		2023		2023		% Change			% Change
Noninterest bearing	$	860,930	$	825,327	$	815,937	$	847,416	$	874,420		4.3	%		(1.5	)%
Interest bearing:
Certificate of deposit accounts		2,875,486		2,435,894		2,529,095		2,311,290		2,321,369		18.0			23.9
Savings accounts		100,279		103,296		105,147		108,605		112,730		(2.9	)		(11.0	)
Money market accounts		1,659,027		1,710,376		1,717,298		1,726,404		1,551,176		(3.0	)		7.0
NOW accounts		2,003,301		1,774,268		2,003,649		1,771,164		1,749,802		12.9			14.5
Total interest-bearing deposits		6,638,093		6,023,834		6,355,189		5,917,463		5,735,077		10.2			15.7
Total due to depositors		7,499,023		6,849,161		7,171,126		6,764,879		6,609,497		9.5			13.5
Mortgagors' escrow deposits		73,372		57,702		82,081		50,382		72,012		27.2			1.9
Total deposits	$	7,572,395	$	6,906,863	$	7,253,207	$	6,815,261	$	6,681,509		9.6	%		13.3	%

Loan Composition

																3Q24 vs. 2Q24			3Q24 vs. 3Q23
	September 30,			June 30,			March 31,			December 31,			September 30,			3Q24 vs. 2Q24			3Q24 vs. 3Q23
(Dollars in thousands)	2024			2024			2024			2023			2023			% Change			% Change
Multifamily residential	$	2,638,863		$	2,631,751		$	2,622,737		$	2,658,205		$	2,614,219			0.3	%		0.9	%
Commercial real estate		1,929,093			1,894,509			1,925,312			1,958,252			1,953,243			1.8			(1.2	)
One-to-four family ??? mixed use property		515,511			518,510			516,198			530,243			537,744			(0.6	)		(4.1	)
One-to-four family ??? residential		252,293			261,716			267,156			220,213			222,874			(3.6	)		13.2
Construction		63,674			65,161			60,568			58,673			59,903			(2.3	)		6.3
Mortgage loans		5,399,434			5,371,647			5,391,971			5,425,586			5,387,983			0.5			0.2

Small Business Administration		19,368			13,957			16,244			20,205			21,896			38.8			(11.5	)
Commercial business and other		1,387,965			1,389,711			1,411,725			1,452,518			1,487,775			(0.1	)		(6.7	)
Commercial Business loans		1,407,333			1,403,668			1,427,969			1,472,723			1,509,671			0.3			(6.8	)

Gross loans		6,806,767			6,775,315			6,819,940			6,898,309			6,897,654			0.5			(1.3	)
Net unamortized (premiums) and unearned loan (cost) fees ⁽¹⁾		11,561			1,711			2,003			8,641			(1,580	)		575.7			(831.7	)
Allowance for credit losses		(40,342	)		(41,648	)		(40,752	)		(40,161	)		(39,228	)		(3.1	)		2.8
Net loans	$	6,777,986		$	6,735,378		$	6,781,191		$	6,866,789		$	6,856,846			0.6	%		(1.2	)%

⁽¹⁾ Includes $3.1 million, $3.4 million, $3.6 million, $3.9 million, and $4.4 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOAN CLOSINGS and RATES
(Unaudited)

Loan Closings

	For the three months ended										For the nine months ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(In thousands)	2024		2024		2024		2023		2023		2024		2023
Multifamily residential	$	50,528	$	27,966	$	11,805	$	82,995	$	75,655	$	90,299	$	149,720
Commercial real estate		56,713		20,573		10,040		60,092		70,197		87,326		124,290
One-to-four family - mixed use property		5,709		3,980		750		3,319		6,028		10,439		16,778
One-to-four family - residential		1,705		689		52,539		1,454		1,070		54,933		5,429
Construction		5,063		4,594		1,895		8,007		6,971		11,552		26,374
Mortgage loans		119,718		57,802		77,029		155,867		159,921		254,549		322,591

Small Business Administration		5,930		-		-		1,162		-		5,930		1,138
Commercial business and other		91,447		68,162		52,955		87,255		81,549		212,564		250,067
Commercial Business loans		97,377		68,162		52,955		88,417		81,549		218,494		251,205

Total Closings	$	217,095	$	125,964	$	129,984	$	244,284	$	241,470	$	473,043	$	573,796

Weighted Average Rate on Loan Closings

	For the three months ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Loan type	2024			2024			2024			2023			2023
Mortgage loans		7.31	%		7.58	%		6.36	%		7.55	%		7.22	%
Commercial Business loans		7.75			7.94			8.29			7.93			8.00
Total loans		7.51	%		7.77	%		7.13	%		7.69	%		7.48	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)

Allowance for Credit Losses

	For the three months ended															For the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2024			2023			2023			2024			2023
Allowance for credit losses - loans
Beginning balances	$	41,648		$	40,752		$	40,161		$	39,228		$	38,593		$	40,161		$	40,442

Net loan charge-off (recoveries):
Multifamily residential		-			(1	)		-			(1	)		-			(1	)		(1	)
Commercial real estate		-			-			-			-			-			-			8
One-to-four family - mixed-use property		-			(2	)		-			(1	)		-			(2	)		-
One-to-four family - residential		(58	)		(2	)		13			9			(6	)		(47	)		(38	)
Small Business Administration		(1	)		(91	)		(5	)		(29	)		(48	)		(97	)		(212	)
Commercial business and other		3,095			4			(4	)		82			12			3,095			10,995
Total net loan charge-offs (recoveries)		3,036			(92	)		4			60			(42	)		2,948			10,752

Provision (benefit) for loan losses		1,730			804			595			993			593			3,129			9,538

Ending balance	$	40,342		$	41,648		$	40,752		$	40,161		$	39,228		$	40,342		$	39,228

Gross charge-offs	$	3,110		$	11		$	58		$	107		$	21		$	3,179		$	11,050
Gross recoveries		74			103			54			47			63			231			298

Allowance for credit losses - loans to gross loans		0.59	%		0.61	%		0.60	%		0.58	%		0.57	%		0.59	%		0.57	%
Net loan charge-offs (recoveries) to average loans		0.18			(0.01	)		-			-			-			0.06			0.21

Nonperforming Assets

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

Nonaccrual Loans:
Multifamily residential		9,478			13,774			4,669			3,206			3,206
Commercial real estate		6,705			-			-			-			-
One-to-four family - mixed-use property		369			909			911			981			1,075
One-to-four family - residential		1,493			3,633			3,768			5,181			4,161
Small Business Administration		2,445			2,552			2,552			2,552			1,255
Commercial business and other		13,771			13,672			12,929			11,789			7,708
Total Nonaccrual loans		34,261			34,540			24,829			23,709			17,405

Total Nonperforming Loans (NPLs)		34,261			34,540			24,829			25,172			17,405

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

Total Nonaccrual HTM Securities		20,627			20,627			20,760			20,981			20,981

Total Nonperforming Assets	$	54,888		$	55,832		$	46,254		$	46,153		$	38,386

Nonperforming Assets to Total Assets		0.59	%		0.61	%		0.53	%		0.54	%		0.45	%
Allowance for Credit Losses to NPLs		117.7	%		120.6	%		164.1	%		159.5	%		225.4	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

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

Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense and Tangible Book Value per common share are each non-GAAP measures used in this release. A reconciliation to the most directly comparable GAAP financial measures appears below in tabular form. The Company believes that these measures are useful for both investors and management to understand the effects of certain interest and noninterest items and provide an alternative view of the Company's performance over time and in comparison, to the Company's competitors. These measures should not be viewed as a substitute for net income. The Company believes that tangible book value per common share is useful for both investors and management as this measure is commonly used by financial institutions, regulators, and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison, to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(Unaudited)

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

GAAP income before income taxes	$	11,457		$	7,136		$	4,997		$	11,754		$	10,752		$	23,590		$	28,079

Net (gain) loss from fair value adjustments (Noninterest income (loss))		(974	)		(57	)		834			(906	)		1,246			(197	)		(1,667	)
Life insurance proceeds (Noninterest income (loss))		(1	)		-			-			(697	)		(23	)		(1	)		(584	)
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)		(554	)		(177	)		187			872			(1,348	)		(544	)		(1,243	)
Net amortization of purchase accounting adjustments and intangibles (Various)		(62	)		(85	)		(169	)		(355	)		(237	)		(316	)		(652	)
Miscellaneous expense (Professional services)		10			494			-			526			-			504			-

Core income before taxes		9,876			7,311			5,849			11,194			10,390			23,036			23,933

Provision for core income taxes		2,153			1,855			1,537			3,648			2,819			5,545			6,561

Core net income	$	7,723		$	5,456		$	4,312		$	7,546		$	7,571		$	17,491		$	17,372

GAAP diluted earnings per common share	$	0.30		$	0.18		$	0.12		$	0.27		$	0.26		$	0.60		$	0.69
Net (gain) loss from fair value adjustments, net of tax		(0.03	)		(0.01	)		0.02			(0.02	)		0.03			(0.01	)		(0.04	)
Life insurance proceeds		-			-			-			(0.02	)		-			-			(0.02	)
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		(0.01	)		-			-			0.02			(0.03	)		(0.01	)		(0.03	)
Net amortization of purchase accounting adjustments, net of tax		-			-			-			(0.01	)		(0.01	)		(0.01	)		(0.02	)
Miscellaneous expense, net of tax		-			0.01			-			0.01			-			0.01			-

Core diluted earnings per common share⁽¹⁾	$	0.26		$	0.18		$	0.14		$	0.25		$	0.25		$	0.59		$	0.58

Core net income, as calculated above	$	7,723		$	5,456		$	4,312		$	7,546		$	7,571		$	17,491		$	17,372
Average assets		9,203,884			8,830,665			8,707,505			8,569,002			8,505,346			8,915,076			8,478,837
Average equity		672,762			667,557			669,185			669,819			675,041			669,845			676,949
Core return on average assets⁽²⁾		0.34	%		0.25	%		0.20	%		0.35	%		0.36	%		0.26	%		0.27	%
Core return on average equity⁽²⁾		4.59	%		3.27	%		2.58	%		4.51	%		4.49	%		3.48	%		3.42	%

⁽¹⁾ Core diluted earnings per common share may not foot due to rounding.

⁽²⁾ Ratios are calculated on an annualized basis.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP REVENUE and PRE-PROVISION
PRE-TAX NET REVENUE
(Unaudited)

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

GAAP Net interest income	$	45,603		$	42,776		$	42,397		$	46,085		$	44,427		$	130,776		$	133,067
Net (gain) loss from fair value adjustments on qualifying hedges		(554	)		(177	)		187			872			(1,348	)		(544	)		(1,243	)
Net amortization of purchase accounting adjustments		(155	)		(182	)		(271	)		(461	)		(347	)		(608	)		(993	)
Core Net interest income	$	44,894		$	42,417		$	42,313		$	46,496		$	42,732		$	129,624		$	130,831

GAAP Noninterest income	$	6,277		$	4,216		$	3,084		$	7,402		$	3,309		$	13,577		$	15,186
Net (gain) loss from fair value adjustments		(974	)		(57	)		834			(906	)		1,246			(197	)		(1,667	)
Life insurance proceeds		(1	)		-			-			(697	)		(23	)		(1	)		(584	)
Core Noninterest income	$	5,302		$	4,159		$	3,918		$	5,799		$	4,532		$	13,379		$	12,935

GAAP Noninterest expense	$	38,696		$	39,047		$	39,892		$	40,735		$	36,388		$	117,635		$	110,654
Net amortization of purchase accounting adjustments		(93	)		(97	)		(102	)		(106	)		(110	)		(292	)		(341	)
Miscellaneous expense		(10	)		(494	)		-			(526	)		-			(504	)		-
Core Noninterest expense	$	38,593		$	38,456		$	39,790		$	40,103		$	36,278		$	116,839		$	110,313

Net interest income	$	45,603		$	42,776		$	42,397		$	46,085		$	44,427		$	130,776		$	133,067
Noninterest income		6,277			4,216			3,084			7,402			3,309			13,577			15,186
Noninterest expense		(38,696	)		(39,047	)		(39,892	)		(40,735	)		(36,388	)		(117,635	)		(110,654	)
Pre-provision pre-tax net revenue	$	13,184		$	7,945		$	5,589		$	12,752		$	11,348		$	26,718		$	37,599

Core:
Net interest income	$	44,894		$	42,417		$	42,313		$	46,496		$	42,732		$	129,624		$	130,831
Noninterest income		5,302			4,159			3,918			5,799			4,532			13,379			12,935
Noninterest expense		(38,593	)		(38,456	)		(39,790	)		(40,103	)		(36,278	)		(116,839	)		(110,313	)
Pre-provision pre-tax net revenue	$	11,603		$	8,120		$	6,441		$	12,192		$	10,986		$	26,164		$	33,453
Efficiency Ratio		77.2	%		82.6	%		86.1	%		76.7	%		76.8	%		81.8	%		76.7	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN
to CORE NET INTEREST INCOME
(Unaudited)

	For the three months ended															For the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2024			2023			2023			2024			2023
GAAP net interest income	$	45,603		$	42,776		$	42,397		$	46,085		$	44,427		$	130,776		$	133,067
Net (gain) loss from fair value adjustments on qualifying hedges		(554	)		(177	)		187			872			(1,348	)		(544	)		(1,243	)
Net amortization of purchase accounting adjustments		(155	)		(182	)		(271	)		(461	)		(347	)		(608	)		(993	)
Tax equivalent adjustment		100			98			100			101			102			298			303
Core net interest income FTE	$	44,994		$	42,515		$	42,413		$	46,597		$	42,834		$	129,922		$	131,134
Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and customer swap terminations fees		(1,647	)		(369	)		(928	)		(3,416	)		(857	)		(2,944	)		(1,852	)
Net interest income FTE excluding episodic items	$	43,347		$	42,146		$	41,485		$	43,181		$	41,977		$	126,978		$	129,282

Total average interest-earning assets ⁽¹⁾	$	8,712,443		$	8,358,006		$	8,238,395		$	8,080,550		$	8,027,201		$	8,437,288		$	8,010,154
Core net interest margin FTE		2.07	%		2.03	%		2.06	%		2.31	%		2.13	%		2.05	%		2.18	%
Net interest margin FTE excluding episodic items		1.99	%		2.02	%		2.01	%		2.14	%		2.09	%		2.01	%		2.15	%

GAAP interest income on total loans, net	$	95,780		$	92,728		$	92,959		$	95,616		$	91,466		$	281,467		$	259,732
Net (gain) loss from fair value adjustments on qualifying hedges - loans		(364	)		(137	)		123			978			(1,379	)		(378	)		(1,323	)
Net amortization of purchase accounting adjustments		(168	)		(198	)		(295	)		(484	)		(358	)		(661	)		(1,019	)
Core interest income on total loans, net	$	95,248		$	92,393		$	92,787		$	96,110		$	89,729		$	280,428		$	257,390

Average total loans, net ⁽¹⁾	$	6,740,579		$	6,751,715		$	6,807,944		$	6,872,115		$	6,817,642		$	6,766,650		$	6,842,712
Core yield on total loans		5.65	%		5.47	%		5.45	%		5.59	%		5.26	%		5.53	%		5.02	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS'
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Total Equity	$	666,891		$	665,322		$	669,827		$	669,837		$	666,521
Less:
Goodwill		(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles		(1,220	)		(1,322	)		(1,428	)		(1,537	)		(1,651	)
Tangible Stockholders' Common Equity	$	648,035		$	646,364		$	650,763		$	650,664		$	647,234

Total Assets	$	9,280,886		$	9,097,240		$	8,807,325		$	8,537,236		$	8,579,375
Less:
Goodwill		(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles		(1,220	)		(1,322	)		(1,428	)		(1,537	)		(1,651	)
Tangible Assets	$	9,262,030		$	9,078,282		$	8,788,261		$	8,518,063		$	8,560,088

Tangible Stockholders' Common Equity to Tangible Assets		7.00	%		7.12	%		7.40	%		7.64	%		7.56	%