# EDGAR Filing Document

**Accession Number:** 0000923139
**File Stem:** 0000923139-23-000006
**Filing Date:** 2023-1
**Character Count:** 80977
**Document Hash:** f2e8a8400d74a6e822ed641cd56c6953
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000923139-23-000006.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0000923139-23-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230126

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230126

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FLUSHING FINANCIAL CORP
- **CENTRAL INDEX KEY:** 0000923139
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 113209278
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33013
- **FILM NUMBER:** 23559043

**BUSINESS ADDRESS:**
- **STREET 1:** 220 RXR PLAZA
- **CITY:** UNIONDALE
- **STATE:** NY
- **ZIP:** 11556
- **BUSINESS PHONE:** 718-961-5400

**MAIL ADDRESS:**
- **STREET 1:** 220 RXR PLAZA
- **CITY:** UNIONDALE
- **STATE:** NY
- **ZIP:** 11556

?xml version='1.0' encoding='UTF-8'?

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

 **of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): January 26, 2023**

**FLUSHING FINANCIAL CORPORATION**

*(Exact name of registrant as specified in its charter)*

**001-33013**

*(Commission File Number)*

**Delaware**

*(State or Other Jurisdiction of Incorporation)*

**11-3209278**

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

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

*(Address of principal executive offices)*

**(718) 961-5400**

*(Registrant's telephone number, including area code)*

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

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

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

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

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

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

---

| | |
|:---|:---|
| Title of each class<br>| Name of each exchange on which registered<br>|
| Common Stock, $0.01 par value<br> FFIC | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02. Results of Operations and Financial Condition.**

On January 26, 2023, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

**Item 9.01. Financial Statements and Exhibits.**

[Exhibit 99.1 Press release dated January 26, 2023](ffic-20230126xex99.htm) <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| usa<br>|  |  |
|  | **FLUSHING FINANCIAL CORPORATION** | **FLUSHING FINANCIAL CORPORATION** |
| Date: January 26, 2023 | By:  | /s/ SUSAN K. CULLEN |
|  |  | Susan K. Cullen |
|  |  | Senior Executive Vice President and Chief Financial Officer |

---

## Ex-99

**Exhibit 99.1**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● ● |
| &nbsp;&nbsp;<br>![Graphic](ffic-20230126xex99002.jpg)<br>| &nbsp;&nbsp;**John R. Buran, President and CEO Commentary** |
| &nbsp;&nbsp;**Flushing Financial Corporation Reports 4Q22 GAAP EPS of $0.34 and Core EPS of $0.57;**<br>**Full Year 2022 GAAP EPS of $2.50 and Core EPS of $2.49** | &nbsp;&nbsp;**Flushing Financial Corporation Reports 4Q22 GAAP EPS of $0.34 and Core EPS of $0.57;**<br>**Full Year 2022 GAAP EPS of $2.50 and Core EPS of $2.49** |
| &nbsp;&nbsp;UNIONDALE, N.Y., January 26, 2023 (GLOBE NEWSWIRE) - The Company reported fourth quarter 2022 GAAP EPS of $0.34, down 41.4% YoY, with ROAA of 0.48%, and ROAE of 6.06%. Core 4Q22 EPS was $0.57, a decrease of 14.9% YoY, with ROAA of 0.82% and ROAE of 10.29%. Full year 2022 GAAP EPS was $2.50, down 3.5% YoY with ROAA of 0.93% and ROAE of 11.44%. Core 2022 EPS was $2.49, a decline of 11.4% YoY with ROAA of 0.92% and ROAE of 11.42%. | &nbsp;&nbsp;UNIONDALE, N.Y., January 26, 2023 (GLOBE NEWSWIRE) - The Company reported fourth quarter 2022 GAAP EPS of $0.34, down 41.4% YoY, with ROAA of 0.48%, and ROAE of 6.06%. Core 4Q22 EPS was $0.57, a decrease of 14.9% YoY, with ROAA of 0.82% and ROAE of 10.29%. Full year 2022 GAAP EPS was $2.50, down 3.5% YoY with ROAA of 0.93% and ROAE of 11.44%. Core 2022 EPS was $2.49, a decline of 11.4% YoY with ROAA of 0.92% and ROAE of 11.42%. |
| &nbsp;&nbsp;"The Company recorded its second-best core earnings for 2022 despite the aggressive Fed movements and resultant net interest margin compression. The net interest margin compression is expected to be temporary and remain until the Fed ceases rate moves with recovery on a lag as funding pressures ease and loans reprice upwards. During the quarter, the yield on new loan originations totaled 6.10%, up 150 basis points QoQ and 259 basis points YoY. Average loans and deposits increased 4.9% and 3.4% respectively, YoY in 4Q22. Credit quality remains a hallmark of the Company with net charge-offs of only 5 basis points for the quarter and 2 basis points for the year as the real estate portfolio has strong debt service coverage ratios and low loan to values. The Company has a long history of solid credit quality. During the quarter, we sold $84.2 million of investment securities with an average yield of 1.17% recognizing a $10.9 million loss. The proceeds will be redeployed into higher yielding assets as we prepare for 2023 and beyond." <br>- **John R. Buran, President and CEO** | &nbsp;&nbsp;"The Company recorded its second-best core earnings for 2022 despite the aggressive Fed movements and resultant net interest margin compression. The net interest margin compression is expected to be temporary and remain until the Fed ceases rate moves with recovery on a lag as funding pressures ease and loans reprice upwards. During the quarter, the yield on new loan originations totaled 6.10%, up 150 basis points QoQ and 259 basis points YoY. Average loans and deposits increased 4.9% and 3.4% respectively, YoY in 4Q22. Credit quality remains a hallmark of the Company with net charge-offs of only 5 basis points for the quarter and 2 basis points for the year as the real estate portfolio has strong debt service coverage ratios and low loan to values. The Company has a long history of solid credit quality. During the quarter, we sold $84.2 million of investment securities with an average yield of 1.17% recognizing a $10.9 million loss. The proceeds will be redeployed into higher yielding assets as we prepare for 2023 and beyond." <br>- **John R. Buran, President and CEO** |
| &nbsp;&nbsp;**Loan Growth of 4.4% YoY; NIM Declined QoQ.** Period end net loans increased 4.4% YoY, with business loans comprising 38.3% of the growth; loans declined slightly QoQ. Loan closings of $225.2 million decreased 37.9% YoY, while repayment speeds declined both YoY and QoQ. Management has focused on full banking relationships choosing to forgo transactional business. Net interest income of $54.2 million decreased 13.5% YoY and 11.4% QoQ, primarily due to the increase in funding costs. NIM FTE was 2.70% in 4Q22 compared to 3.07% in 3Q22 and 3.29% a year ago. Core NIM FTE was 2.63% in 4Q22 compared to 3.03% in 3Q22 and 3.21% in 4Q21. Net charge-offs were only 5 bps in 4Q22, which is consistent with the loan portfolio having an average LTV <37%.<br>**71% of 2022 Earnings Returned to Shareholders; TCE/TA**<sup>1</sup> **Improves QoQ.** The Company repurchased 374,862 shares of common stock at an average price of $20.16 during the quarter. Book value and tangible book value per share were $22.97 and $22.31, respectively, while TCE/TA was up 20 bps to 7.82% at December 31, 2022, compared to 7.62% at September 30, 2022.  | &nbsp;&nbsp;**Loan Growth of 4.4% YoY; NIM Declined QoQ.** Period end net loans increased 4.4% YoY, with business loans comprising 38.3% of the growth; loans declined slightly QoQ. Loan closings of $225.2 million decreased 37.9% YoY, while repayment speeds declined both YoY and QoQ. Management has focused on full banking relationships choosing to forgo transactional business. Net interest income of $54.2 million decreased 13.5% YoY and 11.4% QoQ, primarily due to the increase in funding costs. NIM FTE was 2.70% in 4Q22 compared to 3.07% in 3Q22 and 3.29% a year ago. Core NIM FTE was 2.63% in 4Q22 compared to 3.03% in 3Q22 and 3.21% in 4Q21. Net charge-offs were only 5 bps in 4Q22, which is consistent with the loan portfolio having an average LTV <37%.<br>**71% of 2022 Earnings Returned to Shareholders; TCE/TA**<sup>1</sup> **Improves QoQ.** The Company repurchased 374,862 shares of common stock at an average price of $20.16 during the quarter. Book value and tangible book value per share were $22.97 and $22.31, respectively, while TCE/TA was up 20 bps to 7.82% at December 31, 2022, compared to 7.62% at September 30, 2022.  |

---

---

| |
|:---|
| &nbsp;&nbsp;<sup>1</sup> See "Reconciliation of GAAP Earnings and Core Earnings" and "Reconciliation of GAAP<br> Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin."<br>|
| &nbsp;&nbsp;**Key Financial Metrics**<sup>2</sup> |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **4Q22** | **3Q22** | **2Q22** | **1Q22** | **4Q21** | **2022** | **2021** |
| **GAAP:** |  |  |  |  |  |  |  |
| EPS | $0.34  | $0.76  | $0.81  | $0.58  | $0.58  | $2.50  | $2.59  |
| ROAA (%) | 0.48 | 1.11 | 1.22 | 0.91 | 0.89 | 0.93 | 1.00 |
| ROAE (%) | 6.06 | 13.91 | 15.00 | 10.83 | 10.77 | 11.44 | 12.60 |
| NIM FTE<sup>3</sup> (%) | 2.70 | 3.07 | 3.35 | 3.36 | 3.29 | 3.11 | 3.24 |
| **Core:** |  |  |  |  |  |  |  |
| EPS | $0.57  | $0.62  | $0.70  | $0.61  | $0.67  | $2.49  | $2.81  |
| ROAA (%) | 0.82 | 0.90 | 1.05 | 0.94 | 1.04 | 0.92 | 1.09 |
| ROAE (%) | 10.29 | 11.24 | 12.90 | 11.27 | 12.49 | 11.42 | 13.68 |
| Core NIM FTE (%) | 2.63 | 3.03 | 3.33 | 3.31 | 3.21 | 3.07 | 3.17 |
| **Credit Quality:** |  |  |  |  |  |  |  |
| NPAs/Loans&REO (%) | 0.77 | 0.72 | 0.72 | 0.21 | 0.23 | 0.77 | 0.23 |
| ACLs/Loans (%) | 0.58 | 0.59 | 0.58 | 0.57 | 0.56 | 0.58 | 0.56 |
| ACLs/NPLs (%) | 124.89 | 142.29 | 141.06 | 266.12 | 248.66 | 124.89 | 248.66 |
| NCOs/Avg Loans (%) | 0.05  | 0.02  | (0.03) | 0.06 | - | 0.02  | 0.05 |
| **Balance Sheet:** |  |  |  |  |  |  |  |
| Avg Loans ($B) | $6.9  | $6.9  | $6.6  | $6.6  | $6.6  | $6.7  | $6.6  |
| Avg Dep ($B) | $6.7  | $6.3  | $6.4  | $6.4  | $6.5  | $6.5  | $6.4  |
| Book Value/Share | $22.97  | $22.47  | $22.38  | $22.26  | $22.26  | $22.97  | $22.26  |
| Tangible BV/Share | $22.31  | $21.81  | $21.71  | $21.61  | $21.61  | $22.31  | $21.61  |
| TCE/TA (%) | 7.82 | 7.62 | 7.82 | 8.05 | 8.22 | 7.82 | 8.22 |

---

<sup>1</sup> Tangible Common Equity ("TCE")/Total Assets ("TA") <sup>2</sup> 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." <sup>3</sup> Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE")

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54001

------

![Graphic](ffic-20230126xex99002.jpg)

---

| |
|:---|
| &nbsp;&nbsp;**4Q22 Highlights** |
| &nbsp;&nbsp;● Period end net loans were stable QoQ and increased 4.4% YoY; loan closings were $225.2 million with a rate of 6.10% in 4Q22, down 51.4% QoQ and 37.9% YoY, while the yield on closings increased 150 bps QoQ and 259 bps YoY <br>● Average deposits, including mortgage escrow, increased 6.4% QoQ and 3.4% YoY to $6.7 billion, with core deposits comprising 79.8% of total average deposits <br>● Loan pipeline decreased 41.3% YoY to $252.2 million reflecting higher rates and greater client selectivity<br>● $84.2 million of mortgage-based securities were sold at a loss of $10.9 million ($0.27 per share, net of tax) in 4Q22 <br>● Net interest income decreased 11.4% QoQ and 13.5% YoY to $54.2 million; Core net interest income declined 12.4% QoQ and 13.4% YoY to $52.9 million<br>● Net interest margin FTE decreased 37 bps QoQ and 59 bps YoY to 2.70%; Core net interest margin FTE decreased 40 bps QoQ and 58 bps YoY to 2.63%; The decline in GAAP and Core NIM was primarily driven by our liability sensitive balance sheet resulting in liabilities repricing faster than assets; after a lag, the NIM is expected to expand when the Fed stops raising rates as loans continue to reprice higher, while the cost of funding is expected to remain steady <br>● NPAs increased slightly to $53.4 million from $50.0 million at 3Q22 and from $14.9 million at 4Q21 <br>● Provision for credit losses was negligible in 4Q22 compared to $0.8 million in 4Q21; net charge-offs were $0.8 million in 4Q22 compared to net recoveries of $29 thousand in 4Q21<br>● Tangible Common Equity to Tangible Assets was 7.82% up from 7.62% at 3Q22; the change in accumulated other comprehensive loss, net of taxes positively impacted this ratio by 11 bps in 4Q22 <br>● Repurchased 374,862 shares at an average price of $20.16; dividends and share repurchases were 71% of net income in 2022<br>|

---

---

| |
|:---|
| &nbsp;&nbsp;<sup>1</sup> See "Reconciliation of GAAP Earnings and Core Earnings" and "Reconciliation of GAAP<br> Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin."<br>|
| &nbsp;&nbsp;**Income Statement Highlights** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | **YoY** | **QoQ** |
| ($000s, except EPS) | **4Q22** | **3Q22** | **2Q22** | **1Q22** | **4Q21** | **Change** | **Change** |
| Net Interest Income | $54201  | $61206  | $64730  | $63479  | $62674  | (13.5)% | (11.4)% |
| Provision (Benefit) for Credit Losses | (12) | 2145  | 1590  | 1358  | 761  | (101.6) | (100.6) |
| Noninterest Income (Loss) | (7652) | 8995  | 7353  | 1313  | (280) | 2632.9 | (185.1) |
| Noninterest Expense | 33742  | 35634  | 35522  | 38794  | 38807  | (13.1) | (5.3) |
| Income Before Income Taxes | 12819  | 32422  | 34971  | 24640  | 22826  | (43.8) | (60.5) |
| Provision for Income Taxes  | 2570  | 8980  | 9936  | 6421  | 4743  | (45.8) | (71.4) |
| Net Income  | $10249  | $23442  | $25035  | $18219  | $18083  | (43.3) | (56.3) |
| Diluted EPS | $0.34  | $0.76  | $0.81  | $0.58  | $0.58  | (41.4) | (55.3) |
| Avg. Diluted Shares (000s) | 30420  | 30695  | 30937  | 31254  | 31353  | (3.0) | (0.9) |
| Core Net Income<sup>1</sup> | $17399  | $18953  | $21518  | $18969  | $20968  | (17.0) | (8.2) |
| Core EPS<sup>1</sup> | $0.57  | $0.62  | $0.70  | $0.61  | $0.67  | (14.9) | (8.1) |

---

<sup>1</sup> See Reconciliation of GAAP Earnings and Core Earnings

**Net interest income** totaled $54.2 million in 4Q22 compared to $61.2 million in 3Q22, $64.7 million in 2Q22, $63.5 million in 1Q22, and $62.7 million in 4Q21. Net interest income declined 1.8% in 2022 to $243.6 million compared to $248.0 million in 2021.

● Net interest margin, FTE ("NIM") of 2.70% de creased 59 bps YoY and 37 bps QoQ

● Prepayment penalty income from loans and securities, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $2.4 million (12 bps to the NIM) in 4Q22 compared to $2.2 million (11 bps) in 3Q22, $2.6 million (13 bps) in 2Q22, $2.6 million (14 bps) in 1Q22, and $3.1 million (16 bps) in 4Q21

● Excluding the items in the previous bullet, net interest margin was 2.58% in 4Q22, 2.96% in 3Q22, 3.22% in both 2Q22 and 1Q22, and 3.13% in 4Q21

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54002

------

![Graphic](ffic-20230126xex99002.jpg)

The Company recorded a **benefit for credit losses** of $12 thousand in 4Q22, compared to a provision for credit losses of $2.1 million in 3Q22, $1.6 million in 2Q22, $1.4 million in 1Q22, and $0.8 million in 4Q21. The provision for credit losses was $5.1 million in 2022 compared to a benefit for credit losses of $4.9 million in 2021.

● Net charge-offs (recoveries) were $0.8 million in 4Q22 (5 bps of average loans), $0.3 million in 3Q22 (2 bps of average loans), $(0.5) million in 2Q22 ((3) bps of average loans), $0.9 million in 1Q22 (6 bps of average loans), and $(29) thousand in 4Q21 (negligible as compared to average loans)

**Noninterest income (loss)** was $(7.7) million in 4Q22, $9.0 million in 3Q22, $7.4 million in 2Q22, $1.3 million in 1Q22, and $(0.3) million in 4Q21. Noninterest income was $10.0 million in 2022 compared to $3.7 million in 2021.

● Loss on the sale of securities was $10.9 million ($0.27 per share, net of tax) in 4Q22 as the Company sold $84.2 million of mortgage-based securities with an approximate yield of 1.17%; proceeds are being reinvested into securities that are expected to have an earn back period of 3 years or less

● Noninterest income included net gains (losses) from fair value adjustments of $(0.6) million in 4Q22 (($0.02) per share, net of tax), $5.6 million in 3Q22 ($0.13 per share, net of tax), $2.5 million in 2Q22 ($0.06 per share, net of tax), $(1.8) million in 1Q22 ($(0.04) per share, net of tax), and $(5.1) million in 4Q21 ($(0.13) per share, net of tax)

● Life insurance proceeds were $0.3 million ($0.01 per share) in 4Q22 and $1.5 million ($0.05 per share) in 2Q22

● Absent all above items and other immaterial adjustments, core noninterest income was $3.5 million in 4Q22, down 27.4% YoY but up 4.7% QoQ

● Included in 4Q21 core noninterest income was a one-time $2.0 million ($0.05 per share, net of tax) dividend received on retirement plan investments; absent the effects of this dividend, core noninterest income increased 23% YoY

**Noninterest expense** totaled $33.7 million in 4Q22 (a decrease of 13.1% YoY and 5.3% QoQ) compared to $35.6 million in 3Q22, $35.5 million in 2Q22, and $38.8 million in both 1Q22 and 4Q21. Noninterest expense was $143.7 million in 2022 compared to $147.3 million in 2021.

● Salaries and employee benefits includes $2.8 million benefit from a lower discount rate for certain benefit plans and $1.4 million benefit from an Employee Retention Tax Credit refund in 4Q22

● Other operating expenses include $0.6 million reduction in reserves for unfunded commitments in 3Q22

● Included in 1Q22 noninterest expense was $4.3 million of seasonal compensation expense; 4Q21 noninterest expense included a one-time $4.3 million of increased compensation and benefits for all employees due to a record earnings in 2021 and employee performance through the pandemic

● Noninterest expense included $17 thousand pre-tax merger benefit (<$0.01 per share, net of tax) in 4Q21

● Excluding the effects of the merger and other immaterial adjustments, core operating expenses were $33.6 million in 4Q22, down 13.1% YoY and 5.3% QoQ; excluding the Employee Retention Tax Credit refund and the benefit from the lower discount rate, 4Q22 core noninterest expense would have been $37.9 million

● GAAP noninterest expense to average assets was 1.58% in 4Q22, 1.69% in 3Q22, 1.73% in 2Q22, 1.93% in 1Q22, and 1.92% in 4Q21

The **provision for income taxes** was $2.6 million in 4Q22, compared to $9.0 million in 3Q22, $9.9 million in 2Q22, $6.4 million in 1Q22, and $4.7 million in 4Q21. Provision for income taxes was $27.9 million in 2022 compared to $27.5 million in 2021.

● The effective tax rate was 20.0% in 4Q22, 27.7% in 3Q22, 28.4% in 2Q22, 26.1% in 1Q22, and 20.8% in 4Q21; for the year, the effective tax rate was 26.6% compared to 25.2% in 2021

● The 4Q22 effective tax rate declined due to preferential tax items having a larger impact due to lower levels of pre-tax income

● The 2Q22 effective tax rate includes a loss of a certain state and city tax deductions and a resolution of certain examinations by taxing authorities

● The 4Q21 effective tax rate declined due to lower levels of taxable state income and higher percentage of permanent differences

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54003

------

![Graphic](ffic-20230126xex99002.jpg)

&nbsp;&nbsp;**Balance Sheet, Credit Quality, and Capital Highlights**<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | | | | **YoY** | **YoY** | **QoQ** | **QoQ** |
|  | **4Q22** | <br>**3Q22** | <br>**2Q22** | <br>**1Q22** | <br>**4Q21** | **Change** | **Change** | **Change** | **Change** |
| **Average Loans And Deposits ($MM)** |  |  |  |  |  |  |  |  |  |
| Loans | $6881  | $6861  | $6640  | $6579  | $6558  | 4.9 | % | 0.3 | % |
| Deposits | 6678  | 6277  | 6441  | 6410  | 6459  | 3.4 |  | 6.4 |  |
| **Credit Quality ($000s)** |  |  |  |  |  |  |  |  |  |
| Nonperforming Loans | $32382  | $29003  | $27948  | $14066  | $14934  | 116.8 | % | 11.7 | % |
| Nonperforming Assets | 53363  | 49984  | 48929  | 14066  | 14934  | 257.3 |  | 6.8 |  |
| Criticized and Classified Loans | 68092  | 61684  | 57145  | 59548  | 57650  | 18.1 |  | 10.4 |  |
| Criticized and Classified Assets | 89073  | 82665  | 78125  | 80527  | 78628  | 13.3 |  | 7.8 |  |
| Troubled Debt Restructured Loans | 11779  | 14757  | 14758  | 15124  | 12714  | (7.4) |  | (20.2) |  |
| Allowance for Credit Losses/Loans (%) | 0.58 | 0.59 | 0.58 | 0.57 | 0.56 | 2 | bps | (1) | bp |
| **Capital** |  |  |  |  |  |  |  |  |  |
| Book Value/Share | $22.97  | $22.47  | $22.38  | $22.26  | $22.26  | 3.2 | % | 2.2 | % |
| Tangible Book Value/Share | 22.31  | 21.81  | 21.71  | 21.61  | 21.61  | 3.2 |  | 2.3 |  |
| Tang. Common Equity/Tang. Assets (%) | 7.82  | 7.62  | 7.82  | 8.05  | 8.22  | (40) | bps | 20 | bps |
| Leverage Ratio (%) | 8.61  | 8.74  | 8.91  | 9.05  | 8.98  | (37) |  | (13) |  |

---

**Average loans** were $6.9 billion, an increase of 4.9% YoY and 0.3% QoQ. Average loans for 2022 were $6.7 billion, an 1.5% increase from $6.6 billion in 2021.

● Period end net loans totaled $6.9 billion, up 4.4% YoY, but down 0.3% QoQ

● Total loan closings were $225.2 million in 4Q22, $463.7 million in 3Q22, $503.8 million in 2Q22, $329.3 million in 1Q22, and $362.7 million in 4Q21

● The loan pipeline was $252.2 million at December 31, 2022, down 41.3% YoY and 18.4% QoQ

**Average Deposits** totaled $6.7 billion, increasing 3.4% YoY and 6.4% QoQ. Average deposits were $6.5 billion in 2022, up 0.6% compared to $6.4 billion in 2021.

● Average core deposits (non-CD deposits) were 79.8% of total average deposits (including escrow deposits) in 4Q22, compared to 85.3% a year ago

● Average noninterest bearing deposits increased 0.3% YoY in 4Q22, but decreased 6.7% QoQ and comprised 14.7% of total average deposits (including escrow deposits) in 4Q22 compared to 15.1% a year ago

**Credit Quality:** Nonperforming loans held at the end of each quarter totaled $32.4 million at 4Q22, $29.0 million at 3Q22, $27.9 million at 2Q22, $14.1 million at 1Q22, and $14.9 million at 4Q21.

● Criticized and classified loans were 98 bps of gross loans at 4Q22 compared to 89 bps at 3Q22, 85 bps at 2Q22, 90 bps at 1Q22, and 87 bps at 4Q21

● Over 88% of gross loans are collateralized by real estate with an average loan-to-value ratio of <37% as of December 31, 2022

● Allowance for credit losses were 124.9% of nonperforming loans at 4Q22 compared to 142.3% at 3Q22 and 248.7% a year ago

**Capital:** Book value per common share was $22.97 at 4Q22, up 2.2% QoQ and 3.2% YoY; tangible book value per common share, a non-GAAP measure, was $22.31 at 4Q22, up 2.3% QoQ and 3.2% YoY.

● The Company paid a dividend of $0.22 per share and repurchased 374,862 shares at an average price of $20.16 in 4Q22

● At the end of 4Q22, 594,462 shares remain subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit

● Tangible common equity to tangible assets was 7.82% at 4Q22 compared to 7.62% at 3Q22 and 8.22% at 4Q21

● The Company and the Bank remain well capitalized under all applicable regulatory requirements

● The leverage ratio was 8.61% at 4Q22 compared to 8.74% at 3Q22 and 8.98% at 4Q21

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54004

------

![Graphic](ffic-20230126xex99002.jpg)

&nbsp;&nbsp;**Conference Call Information And First Quarter Earnings Release Date** <br>

**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, January 27, 2023, at 9:30 AM (ET) to discuss the Company's fourth quarter and full year 2022 results and strategy.

● Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657

● Webcast: <u>https://event.choruscall.com/mediaframe/webcast.html?webcastid=54kQH0yX</u> 

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

● Replay Access Code: 8079034

● The conference call will be simultaneously webcast and archived

**First Quarter 2023 Earnings Release Date:**

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

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

**About Flushing Financial Corporation**

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

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

***"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:*** Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "goals", "potential" or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

#FF

- ***Statistical Tables Follow*** -

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54005

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**FINANCIAL HIGHLIGHTS**

(Unaudited)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the three months ended  | At or for the year ended  | At or for the year ended  | At or for the year ended  |  |
|  | December 31,  | December 31,  | September 30, | September 30, | June 30, | June 30, | March 31, | March 31, | December 31,  | December 31,  | December 31,  |  | December 31,  |  |
| *(Dollars in thousands, except per share data)* | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 |  | 2021 |  |
| **Performance Ratios** <sup>(1)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Return on average assets | 0.48 | % | 1.11 | % | 1.22 | % | 0.91 | % | 0.89 | % | 0.93 | % | 1.00 | % |
| Return on average equity | 6.06 |  | 13.91 |  | 15.00 |  | 10.83 |  | 10.77 |  | 11.44 |  | 12.60 |  |
| Yield on average interest-earning assets <sup>(2)</sup> | 4.44 |  | 4.10 |  | 3.85 |  | 3.77 |  | 3.77 |  | 4.05 |  | 3.77 |  |
| Cost of average interest-bearing liabilities | 2.11 |  | 1.25 |  | 0.60 |  | 0.50 |  | 0.58 |  | 1.13 |  | 0.63 |  |
| Cost of funds | 1.84 |  | 1.08 |  | 0.52 |  | 0.43 |  | 0.50 |  | 0.98 |  | 0.55 |  |
| Net interest rate spread during period <sup>(2)</sup> | 2.33 |  | 2.85 |  | 3.25 |  | 3.27 |  | 3.19 |  | 2.92 |  | 3.14 |  |
| Net interest margin <sup>(2)</sup> | 2.70 |  | 3.07 |  | 3.35 |  | 3.36 |  | 3.29 |  | 3.11 |  | 3.24 |  |
| Noninterest expense to average assets | 1.58 |  | 1.69 |  | 1.73 |  | 1.93 |  | 1.92 |  | 1.73 |  | 1.81 |  |
| Efficiency ratio <sup>(3)</sup> | 59.55 |  | 55.68 |  | 52.27 |  | 58.87 |  | 58.66 |  | 55.22 |  | 55.72 |  |
| Average interest-earning assets to <br>average interest-bearing liabilities | 1.21 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.20 | X |
| **Average Balances** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total loans, net | $6881245 |  | $6861463 |  | $6640331 |  | $6578680 |  | $6558285 |  | $6741590 |  | $6644317 |  |
| Total interest-earning assets | 8045691 |  | 7979070 |  | 7740683 |  | 7570373 |  | 7627256 |  | 7835654 |  | 7672954 |  |
| Total assets | 8518019 |  | 8442657 |  | 8211763 |  | 8049470 |  | 8090701 |  | 8307137 |  | 8143372 |  |
| Total due to depositors | 5616064 |  | 5157715 |  | 5298855 |  | 5336983 |  | 5397802 |  | 5352635 |  | 5416020 |  |
| Total interest-bearing liabilities | 6662209 |  | 6553087 |  | 6337374 |  | 6220510 |  | 6276221 |  | 6444805 |  | 6398666 |  |
| Stockholders' equity | 676165 |  | 674282 |  | 667456 |  | 673012 |  | 671474 |  | 672742 |  | 648946 |  |
| **Per Share Data** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Book value per common share <sup>(4)</sup> | $22.97 |  | $22.47 |  | $22.38 |  | $22.26 |  | $22.26 |  | $22.97 |  | $22.26 |  |
| Tangible book value per common share <sup>(5)</sup> | $22.31 |  | $21.81 |  | $21.71 |  | $21.61 |  | $21.61 |  | $22.31 |  | $21.61 |  |
| **Stockholders' Equity** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Stockholders' equity | $677157 |  | $670719 |  | $670812 |  | $675813 |  | $679628 |  | $677157 |  | $679628 |  |
| Tangible stockholders' equity | 657504 |  | 650936 |  | 650894 |  | 656085 |  | 659758 |  | 657504 |  | 659758 |  |
| **Consolidated Regulatory Capital Ratios** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Tier 1 capital | $746880 |  | $749526 |  | $739776 |  | $731536 |  | $726174 |  | $746880 |  | $726174 |  |
| Common equity Tier 1 capital | 698258 |  | 701532 |  | 686258 |  | 675434 |  | 671494 |  | 698258 |  | 671494 |  |
| Total risk-based capital | 975709 |  | 979021 |  | 903047 |  | 892861 |  | 885469 |  | 975709 |  | 885469 |  |
| Risk Weighted Assets | 6640542 |  | 6689284 |  | 6522710 |  | 6232020 |  | 6182095 |  | 6640542 |  | 6182095 |  |
| Tier 1 leverage capital (well capitalized = 5%) | 8.61 | % | 8.74 | % | 8.91 | % | 9.05 | % | 8.98 | % | 8.61 | % | 8.98 | % |
| Common equity Tier 1 risk-based capital <br>(well capitalized = 6.5%) | 10.52 |  | 10.49 |  | 10.52 |  | 10.84 |  | 10.86 |  | 10.52 |  | 10.86 |  |
| Tier 1 risk-based capital <br>(well capitalized = 8.0%) | 11.25 |  | 11.20 |  | 11.34 |  | 11.74 |  | 11.75 |  | 11.25 |  | 11.75 |  |
| Total risk-based capital <br>(well capitalized = 10.0%) | 14.69 |  | 14.64 |  | 13.84 |  | 14.33 |  | 14.32 |  | 14.69 |  | 14.32 |  |
| **Capital Ratios** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Average equity to average assets | 7.94 | % | 7.99 | % | 8.13 | % | 8.36 | % | 8.30 | % | 8.10 | % | 7.97 | % |
| Equity to total assets | 8.04 |  | 7.84 |  | 8.04 |  | 8.27 |  | 8.45 |  | 8.04 |  | 8.45 |  |
| Tangible common equity to tangible assets <sup>(6)</sup> | 7.82 |  | 7.62 |  | 7.82 |  | 8.05 |  | 8.22 |  | 7.82 |  | 8.22 |  |
| **Asset Quality** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Nonaccrual loans <sup>(7)</sup> | $29782 |  | $27003 |  | $27848 |  | $14066 |  | $14933 |  | $29782 |  | $14933 |  |
| Nonperforming loans | 32382 |  | 29003 |  | 27948 |  | 14066 |  | 14933 |  | 32382 |  | 14933 |  |
| Nonperforming assets | 53363 |  | 49984 |  | 48929 |  | 14066 |  | 14933 |  | 53363 |  | 14933 |  |
| Net charge-offs (recoveries) | 811 |  | 290 |  | (501) |  | 935 |  | (29) |  | 1535 |  | 3119 |  |
| **Asset Quality Ratios** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Nonperforming loans to gross loans | 0.47 | % | 0.42 | % | 0.41 | % | 0.21 | % | 0.23 | % | 0.47 | % | 0.23 | % |
| Nonperforming assets to total assets | 0.63 |  | 0.58 |  | 0.59 |  | 0.17 |  | 0.19 |  | 0.63 |  | 0.19 |  |
| Allowance for credit losses to gross loans | 0.58 |  | 0.59 |  | 0.58 |  | 0.57 |  | 0.56 |  | 0.58 |  | 0.56 |  |
| Allowance for credit losses to <br>nonperforming assets | 75.79 |  | 82.56 |  | 80.57 |  | 266.12 |  | 248.66 |  | 75.79 |  | 248.66 |  |
| Allowance for credit losses to <br>nonperforming loans | 124.89 |  | 142.29 |  | 141.06 |  | 266.12 |  | 248.66 |  | 124.89 |  | 248.66 |  |
| Net charge-offs (recoveries) to average loans | 0.05 |  | 0.02 |  | (0.03) |  | 0.06 |  |  |  | 0.02 |  | 0.05 |  |
| Full-service customer facilities | 25 |  | 25 |  | 25 |  | 24 |  | 24 |  | 25 |  | 24 |  |

---

(See footnotes on next page)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54006

------

![Graphic](ffic-20230126xex99002.jpg)

------

<sup>(1)</sup> Ratios are presented on an annualized basis, where appropriate.

<sup>(2)</sup> Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.

<sup>(3)</sup> Efficiency ratio, a non-GAAP measure, was calculated by dividing noninterest expense (excluding merger expense, OREO expense, prepayment penalty on borrowings, the net gain/loss from the sale of OREO and net amortization of purchase accounting adjustments) by the total of net interest income (excluding net gains and losses from fair value adjustments on qualifying hedges and net amortization of purchase accounting adjustments) and noninterest income (excluding life insurance proceeds, net gains and losses from the sale or disposition of securities, assets and fair value adjustments).

<sup>(4)</sup> Calculated by dividing stockholders' equity by shares outstanding.

<sup>(5)</sup> Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets (goodwill, net of deferred taxes). See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

<sup>(6)</sup> See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

<sup>(7)</sup> Excludes performing nonaccrual TDR loans.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54007

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF INCOME**

(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(In thousands, except per share data)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| **Interest and Dividend Income** |  |  |  |  |  |  |  |
| Interest and fees on loans | $81033 | $75546 | $69192 | $67516 | $68113 | $293287 | $274331 |
| Interest and dividends on securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 6511 | 5676 | 4929 | 3745 | 3536 | 20861 | 13999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends | 24 | 17 | 11 | 8 | 7 | 60 | 29 |
| Other interest income | 1702 | 506 | 159 | 51 | 74 | 2418 | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 89270 | 81745 | 74291 | 71320 | 71730 | 316626 | 288562 |
| **Interest Expense** |  |  |  |  |  |  |  |
| Deposits | 27226 | 11965 | 4686 | 3408 | 3975 | 47285 | 20324 |
| Other interest expense | 7843 | 8574 | 4875 | 4433 | 5081 | 25725 | 20269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 35069 | 20539 | 9561 | 7841 | 9056 | 73010 | 40593 |
| **Net Interest Income** | 54201 | 61206 | 64730 | 63479 | 62674 | 243616 | 247969 |
| Provision (benefit) for credit losses | (12) | 2145 | 1590 | 1358 | 761 | 5081 | (4944) |
| **Net Interest Income After Provision (Benefit) for Credit Losses** | 54213 | 59061 | 63140 | 62121 | 61913 | 238535 | 252913 |
| **Noninterest Income (Loss)** |  |  |  |  |  |  |  |
| Banking services fee income | 1231 | 1351 | 1166 | 1374 | 1142 | 5122 | 5965 |
| Net gain (loss) on sale of securities | (10948) |  |  |  |  | (10948) | 113 |
| Net gain on sale of loans | 46 |  | 73 |  | 46 | 119 | 335 |
| Net gain on disposition of assets | 104 |  |  |  |  | 104 | 621 |
| Net gain (loss) from fair value adjustments | (622) | 5626 | 2533 | (1809) | (5140) | 5728 | (12995) |
| Federal Home Loan Bank of New York <br>stock dividends | 658 | 538 | 407 | 397 | 417 | 2000 | 2097 |
| Life insurance proceeds | 286 |  | 1536 |  |  | 1822 |  |
| Bank owned life insurance | 1126 | 1132 | 1115 | 1114 | 1023 | 4487 | 4044 |
| Other income | 467 | 348 | 523 | 237 | 2232 | 1575 | 3507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income (loss) | (7652) | 8995 | 7353 | 1313 | (280) | 10009 | 3687 |
| **Noninterest Expense** |  |  |  |  |  |  |  |
| Salaries and employee benefits | 18178 | 21438 | 21109 | 23649 | 25223 | 84374 | 88310 |
| Occupancy and equipment | 3701 | 3541 | 3760 | 3604 | 3579 | 14606 | 14002 |
| Professional services | 2130 | 2570 | 2285 | 2222 | 1152 | 9207 | 7439 |
| FDIC deposit insurance | 485 | 738 | 615 | 420 | 391 | 2258 | 2951 |
| Data processing | 1421 | 1367 | 1383 | 1424 | 1757 | 5595 | 7044 |
| Depreciation and amortization | 1535 | 1488 | 1447 | 1460 | 1521 | 5930 | 6425 |
| Other real estate owned/foreclosure expense | 35 | 143 | 32 | 84 | 129 | 294 | 323 |
| Other operating expenses | 6257 | 4349 | 4891 | 5931 | 5055 | 21428 | 20828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 33742 | 35634 | 35522 | 38794 | 38807 | 143692 | 147322 |
| **Income Before Provision for Income Taxes** | 12819 | 32422 | 34971 | 24640 | 22826 | 104852 | 109278 |
| Provision for Income Taxes | 2570 | 8980 | 9936 | 6421 | 4743 | 27907 | 27485 |
| **Net Income** | $10249  | $23442  | $25035  | $18219  | $18083  | $76945  | $81793  |
| Basic earnings per common share | $0.34 | $0.76 | $0.81 | $0.58 | $0.58 | $2.50 | $2.59 |
| Diluted earnings per common share | $0.34 | $0.76 | $0.81 | $0.58 | $0.58 | $2.50 | $2.59 |
| Dividends per common share | $0.22 | $0.22 | $0.22 | $0.22 | $0.21 | $0.88 | $0.84 |
| Basic average shares | 30420 | 30695 | 30937 | 31254 | 31353 | 30823 | 31550 |
| Diluted average shares | 30420 | 30695 | 30937 | 31254 | 31353 | 30823 | 31550 |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54008

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION**

(Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 |
| **ASSETS** |  |  |  |  |  |
| Cash and due from banks | $151754 | $164693 | $137026 | $186407 | $81723 |
| Securities held-to-maturity: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 7875 | 7880 | 7885 | 7890 | 7894 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 65836 | 66032 | 66230 | 66327 | 49974 |
| Securities available for sale: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 384283 | 468366 | 510934 | 553828 | 572184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 351074 | 351495 | 346720 | 286041 | 205052 |
| Loans | 6934769 | 6956674 | 6760393 | 6607264 | 6638105 |
| Allowance for credit losses | (40442) | (41268) | (39424) | (37433) | (37135) |
| Net loans | 6894327 | 6915406 | 6720969 | 6569831 | 6600970 |
| Interest and dividends receivable | 45048 | 42571 | 38811 | 37308 | 38698 |
| Bank premises and equipment, net | 21750 | 22376 | 22285 | 22752 | 23338 |
| Federal Home Loan Bank of New York stock | 45842 | 62489 | 50017 | 33891 | 35937 |
| Bank owned life insurance | 213131 | 212353 | 211220 | 211867 | 210754 |
| Goodwill | 17636 | 17636 | 17636 | 17636 | 17636 |
| Core deposit intangibles | 2017 | 2147 | 2282 | 2420 | 2562 |
| Right of use asset | 43289 | 44885 | 46687 | 48475 | 50200 |
| Other assets | 179084 | 179090 | 160885 | 125160 | 148989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8422946 | $8557419 | $8339587 | $8169833 | $8045911 |
| **LIABILITIES** |  |  |  |  |  |
| Deposits | $6437183 | $6054761 | $6350000 | $6373400 | $6333532 |
| Mortgagors' escrow deposits | 48159 | 70544 | 57577 | 79495 | 51913 |
| Borrowed funds | 1052973 | 1572830 | 1089621 | 877122 | 815544 |
| Operating lease liability | 46125 | 48330 | 50346 | 52292 | 54155 |
| Other liabilities | 161349 | 140235 | 121231 | 111711 | 111139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7745789 | 7886700 | 7668775 | 7494020 | 7366283 |
| **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 | 264332 | 263755 | 262860 | 261837 | 263375 |
| Treasury stock | (98535) | (90977) | (88342) | (79834) | (75293) |
| Retained earnings | 547507 | 543894 | 527217 | 508973 | 497889 |
| Accumulated other comprehensive loss, net of taxes | (36488) | (46294) | (31264) | (15504) | (6684) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 677157 | 670719 | 670812 | 675813 | 679628 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $8422946 | $8557419 | $8339587 | $8169833 | $8045911 |
| *(In thousands)* |  |  |  |  |  |
| Issued shares | 34088 | 34088 | 34088 | 34088 | 34088 |
| Outstanding shares | 29476 | 29851 | 29980 | 30367 | 30526 |
| Treasury shares | 4612 | 4237 | 4108 | 3721 | 3561 |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-54009

------

![Graphic](ffic-20230126xex99002.jpg)

 

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**AVERAGE BALANCE SHEETS**

(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(In thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| **Interest-earning Assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans, net | $5338612 | $5340694 | $5178029 | $5152070 | $5140233 | $5253104 | $5146195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans, net | 1542633 | 1520769 | 1462302 | 1426610 | 1418052 | 1488486 | 1498122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net  | 6881245 | 6861463 | 6640331 | 6578680 | 6558285 | 6741590 | 6644317 |
| &nbsp;&nbsp;&nbsp;Taxable securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 549204 | 568854 | 594923 | 580670 | 595538 | 573314 | 550136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 371897 | 362629 | 333158 | 226744 | 207482 | 324112 | 239208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total taxable securities | 921101 | 931483 | 928081 | 807414 | 803020 | 897426 | 789344 |
| &nbsp;&nbsp;&nbsp;Tax-exempt securities:  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 67022 | 67211 | 67315 | 57611 | 50834 | 64822 | 50831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tax-exempt securities | 67022 | 67211 | 67315 | 57611 | 50834 | 64822 | 50831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-earning deposits and <br>federal funds sold | 176323 | 118913 | 104956 | 126668 | 215117 | 131816 | 188462 |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets | 8045691 | 7979070 | 7740683 | 7570373 | 7627256 | 7835654 | 7672954 |
| Other assets | 472328 | 463587 | 471080 | 479097 | 463445 | 471483 | 470418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $8518019 | $8442657 | $8211763 | $8049470 | $8090701 | $8307137 | $8143372 |
| **Interest-bearing Liabilities:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | $146598 | $154545 | $156785 | $156592 | $154471 | $153605 | $157640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | 1972134 | 1808608 | 2089851 | 2036914 | 2115619 | 1976238 | 2165762 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 2146649 | 2136829 | 2231743 | 2253630 | 2177928 | 2191768 | 2059431 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1350683 | 1057733 | 820476 | 889847 | 949784 | 1031024 | 1033187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total due to depositors | 5616064 | 5157715 | 5298855 | 5336983 | 5397802 | 5352635 | 5416020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagors' escrow accounts | 82483 | 68602 | 97496 | 71509 | 84617 | 80021 | 77552 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5698547 | 5226317 | 5396351 | 5408492 | 5482419 | 5432656 | 5493572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 963662 | 1326770 | 941023 | 812018 | 793802 | 1012149 | 905094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 6662209 | 6553087 | 6337374 | 6220510 | 6276221 | 6444805 | 6398666 |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing demand deposits | 979836 | 1050296 | 1044553 | 1001571 | 976803 | 1019090 | 922741 |
| Other liabilities | 199809 | 164992 | 162380 | 154377 | 166203 | 170500 | 173019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 7841854 | 7768375 | 7544307 | 7376458 | 7419227 | 7634395 | 7494426 |
| Equity | 676165 | 674282 | 667456 | 673012 | 671474 | 672742 | 648946 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $8518019 | $8442657 | $8211763 | $8049470 | $8090701 | $8307137 | $8143372 |
| Net interest-earning assets  | $1383482 | $1425983 | $1403309 | $1349863 | $1351035 | $1390849 | $1274288 |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540010

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**NET INTEREST INCOME AND NET INTEREST MARGIN** 

(Unaudited)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  | For the year ended  | For the year ended  |
|  | December 31,  | December 31,  | September 30, | September 30, | June 30, | June 30, | March 31, | March 31, | December 31,  | December 31,  | December 31,  | December 31,  | December 31,  | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2022 | 2021 | 2021 |
| **Interest Income:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans, net | $60946 |  | $58374 |  | $54775 |  | $53970 |  | $54260 |  | $228065 |  | $217580 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans, net | 20087 |  | 17172 |  | 14417 |  | 13546 |  | 13853 |  | 65222 |  | 56751 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net  | 81033 |  | 75546 |  | 69192 |  | 67516 |  | 68113 |  | 293287 |  | 274331 |  |
| &nbsp;&nbsp;&nbsp;Taxable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 2425 |  | 2466 |  | 2356 |  | 2167 |  | 2125 |  | 9414 |  | 8335 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 3723 |  | 2839 |  | 2090 |  | 1119 |  | 993 |  | 9771 |  | 4001 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total taxable securities | 6148 |  | 5305 |  | 4446 |  | 3286 |  | 3118 |  | 19185 |  | 12336 |  |
| &nbsp;&nbsp;&nbsp;Tax-exempt securities:  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 489 |  | 492 |  | 625 |  | 591 |  | 538 |  | 2197 |  | 2142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tax-exempt securities | 489 |  | 492 |  | 625 |  | 591 |  | 538 |  | 2197 |  | 2142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-earning deposits and federal funds sold | 1702 |  | 506 |  | 159 |  | 51 |  | 74 |  | 2418 |  | 203 |  |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets | 89372 |  | 81849 |  | 74422 |  | 71444 |  | 71843 |  | 317087 |  | 289012 |  |
| **Interest Expense:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | $59 |  | $53 |  | $50 |  | $49 |  | $53 |  | $211 |  | $255 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | 9515 |  | 3640 |  | 1405 |  | 793 |  | 1021 |  | 15353 |  | 5453 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 10532 |  | 5280 |  | 1952 |  | 1275 |  | 1428 |  | 19039 |  | 7271 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 7037 |  | 2948 |  | 1273 |  | 1289 |  | 1471 |  | 12547 |  | 7340 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total due to depositors | 27143 |  | 11921 |  | 4680 |  | 3406 |  | 3973 |  | 47150 |  | 20319 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagors' escrow accounts | 83 |  | 44 |  | 6 |  | 2 |  | 2 |  | 135 |  | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 27226 |  | 11965 |  | 4686 |  | 3408 |  | 3975 |  | 47285 |  | 20324 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 7843 |  | 8574 |  | 4875 |  | 4433 |  | 5081 |  | 25725 |  | 20269 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 35069 |  | 20539 |  | 9561 |  | 7841 |  | 9056 |  | 73010 |  | 40593 |  |
| Net interest income- tax equivalent | $54303 |  | $61310 |  | $64861 |  | $63603 |  | $62787 |  | $244077 |  | $248419 |  |
| **Included in net interest income above:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Prepayment penalties received on loans and securities and net of reversals and recovered interest from nonaccrual loans | $1080 |  | $1368 |  | $2281 |  | $1716 |  | $1497 |  | $6445 |  | $6627 |  |
| Net gains/(losses) from fair value adjustments on qualifying hedges included in loan interest income | 936 |  | 28 |  | (60) |  | (129) |  | 1122 |  | 775 |  | 2079 |  |
| Purchase accounting adjustments | 342 |  | 775 |  | 367 |  | 1058 |  | 462 |  | 2542 |  | 3049 |  |
| **Interest-earning Assets Yields:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans, net | 4.57 | % | 4.37 | % | 4.23 | % | 4.19 | % | 4.22 | % | 4.34 | % | 4.23 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other loans, net | 5.21 |  | 4.52 |  | 3.94 |  | 3.80 |  | 3.91 |  | 4.38 |  | 3.79 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans, net  | 4.71 |  | 4.40 |  | 4.17 |  | 4.11 |  | 4.15 |  | 4.35 |  | 4.13 |  |
| &nbsp;&nbsp;&nbsp;Taxable securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | 1.77 |  | 1.73 |  | 1.58 |  | 1.49 |  | 1.43 |  | 1.64 |  | 1.52 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 4.00 |  | 3.13 |  | 2.51 |  | 1.97 |  | 1.91 |  | 3.01 |  | 1.67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total taxable securities | 2.67 |  | 2.28 |  | 1.92 |  | 1.63 |  | 1.55 |  | 2.14 |  | 1.56 |  |
| &nbsp;&nbsp;&nbsp;Tax-exempt securities: <sup>(1)</sup> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other securities | 2.92 |  | 2.93 |  | 3.71 |  | 4.10 |  | 4.23 |  | 3.39 |  | 4.21 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tax-exempt securities | 2.92 |  | 2.93 |  | 3.71 |  | 4.10 |  | 4.23 |  | 3.39 |  | 4.21 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-earning deposits and federal funds sold | 3.86 |  | 1.70 |  | 0.61 |  | 0.16 |  | 0.14 |  | 1.83 |  | 0.11 |  |
| &nbsp;&nbsp;&nbsp;Total interest-earning assets <sup>(1)</sup> | 4.44 | % | 4.10 | % | 3.85 | % | 3.77 | % | 3.77 | % | 4.05 | % | 3.77 | % |
| **Interest-bearing Liabilities Yields:** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 0.16 | % | 0.14 | % | 0.13 | % | 0.13 | % | 0.14 | % | 0.14 | % | 0.16 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | 1.93 |  | 0.81 |  | 0.27 |  | 0.16 |  | 0.19 |  | 0.78 |  | 0.25 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 1.96 |  | 0.99 |  | 0.35 |  | 0.23 |  | 0.26 |  | 0.87 |  | 0.35 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 2.08 |  | 1.11 |  | 0.62 |  | 0.58 |  | 0.62 |  | 1.22 |  | 0.71 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total due to depositors | 1.93 |  | 0.92 |  | 0.35 |  | 0.26 |  | 0.29 |  | 0.88 |  | 0.38 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagors' escrow accounts | 0.40 |  | 0.26 |  | 0.02 |  | 0.01 |  | 0.01 |  | 0.17 |  | 0.01 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1.91 |  | 0.92 |  | 0.35 |  | 0.25 |  | 0.29 |  | 0.87 |  | 0.37 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings | 3.26 |  | 2.58 |  | 2.07 |  | 2.18 |  | 2.56 |  | 2.54 |  | 2.24 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2.11 | % | 1.25 | % | 0.60 | % | 0.50 | % | 0.58 | % | 1.13 | % | 0.63 | % |
| Net interest rate spread <br>(tax equivalent) <sup>(1)</sup> | 2.33 | % | 2.85 | % | 3.25 | % | 3.27 | % | 3.19 | % | 2.92 | % | 3.14 | % |
| Net interest margin (tax equivalent) <sup>(1)</sup> | 2.70 | % | 3.07 | % | 3.35 | % | 3.36 | % | 3.29 | % | 3.11 | % | 3.24 | % |
| Ratio of interest-earning assets to interest-bearing liabilities | 1.21 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.22 | X | 1.20 | X |

---

------

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

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540011

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**DEPOSIT and LOAN COMPOSITION**

(Unaudited)

**Deposit Composition**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | 2022 vs. | 2022 vs. |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | 2022 | 2021 |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | % Change | % Change |
| Noninterest bearing | $921238 | $992378 | $1081208 | $1041027 | $967621 | (7.2)% | (4.8)% |
| Interest bearing: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1526338 | 1036107 | 906943 | 886317 | 946575 | 47.3 | 61.2 |
| &nbsp;&nbsp;&nbsp;Savings accounts | 143641 | 150552 | 154670 | 158542 | 156554 | (4.6) | (8.2) |
| &nbsp;&nbsp;&nbsp;Money market accounts | 2099776 | 2113256 | 2229993 | 2362390 | 2342003 | (0.6) | (10.3) |
| &nbsp;&nbsp;&nbsp;NOW accounts | 1746190 | 1762468 | 1977186 | 1925124 | 1920779 | (0.9) | (9.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5515945 | 5062383 | 5268792 | 5332373 | 5365911 | 9.0 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $6437183 | $6054761 | $6350000 | $6373400 | $6333532 | 6.3% | 1.6% |

---

**Loan Composition**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  | 2022 vs. | 2022 vs. |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | 2022 | 2021 |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | % Change | % Change |
| Multifamily residential | $2601384 | $2608192 | $2531858 | $2500570 | $2517026 | (0.3)% | 3.4% |
| Commercial real estate | 1913040 | 1914326 | 1864507 | 1764927 | 1775629 | (0.1) | 7.7 |
| One-to-four family ― <br>mixed-use property | 554314 | 560885 | 561100 | 563679 | 571795 | (1.2) | (3.1) |
| One-to-four family ― residential | 235067 | 233469 | 242729 | 248226 | 268255 | 0.7 | (12.4) |
| Co-operative apartments | 6179 | 7015 | 8130 | 8248 | 8316 | (11.9) | (25.7) |
| Construction | 70951 | 63651 | 72148 | 68488 | 59761 | 11.5 | 18.7 |
| Mortgage Loans | 5380935 | 5387538 | 5280472 | 5154138 | 5200782 | (0.1) | 3.5 |
| Small Business Administration <sup>(1)</sup> | 23275 | 27712 | 40572 | 59331 | 93811 | (16.0) | (75.2) |
| Commercial business and other | 1521548 | 1532497 | 1431417 | 1387155 | 1339273 | (0.7) | 13.6 |
| Nonmortgage loans | 1544823 | 1560209 | 1471989 | 1446486 | 1433084 | (1.0) | 7.8 |
| Net unamortized premiums and <br>unearned loan fees <sup>(2)</sup> | 9011 | 8927 | 7932 | 6640 | 4239 | 0.9 | 112.6 |
| Allowance for credit losses  | (40442) | (41268) | (39424) | (37433) | (37135) | (2.0) | 8.9 |
| Net loans | $6894327 | $6915406 | $6720969 | $6569831 | $6600970 | (0.3)% | 4.4% |

---

------

 <sup>(1)</sup> Includes $5.2 million, $9.6 million, $22.2 million, $43.2 million, and $77.4 million of PPP loans at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.

<sup>(2)</sup> Includes $5.4 million, $5.8 million, $6.6 million, $6.9 million, and $8.0 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540012

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**LOAN CLOSINGS and RATES** 

(Unaudited)

**Loan Closings**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(In thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| Multifamily residential | $65347 | $173980 | $136902 | $98180 | $79648 | $474409 | $246964 |
| Commercial real estate | 20750 | 77777 | 164826 | 45102 | 64916 | 308455 | 168482 |
| One-to-four family – <br>mixed-use property | 4489 | 12383 | 12228 | 8498 | 12440 | 37598 | 41110 |
| One-to-four family – residential | 7485 | 4102 | 4211 | 9237 | 5162 | 25035 | 70548 |
| Co-operative apartments |  |  |  | 24 | 413 | 24 | 413 |
| Construction | 7301 | 7170 | 8319 | 8802 | 17033 | 31592 | 38124 |
| Mortgage Loans | 105372 | 275412 | 326486 | 169843 | 179612 | 877113 | 565641 |
| Small Business Administration <sup>(1)</sup> | 665 | 46 | 2750 |  | 270 | 3461 | 143363 |
| Commercial business and other | 119191 | 188202 | 174551 | 159476 | 182858 | 641420 | 544958 |
| Nonmortgage Loans | 119856 | 188248 | 177301 | 159476 | 183128 | 644881 | 688321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Closings | $225228 | $463660 | $503787 | $329319 | $362740 | $1521994 | $1253962 |

---

------

 <sup>(1)</sup> Includes $138.7 million of PPP closings for the year ended December 31, 2021.

**Weighted Average Rate on Loan Closings**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  |
| Loan type | 2022 | 2022 | 2022 | 2022 | 2021 |
| Mortgage loans | 5.59% | 4.37% | 3.76% | 3.61% | 3.77% |
| Nonmortgage loans | 6.57 | 4.93 | 4.21 | 3.27 | 3.24 |
| Total loans | 6.10% | 4.60% | 3.92% | 3.44% | 3.51% |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540013

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**ASSET QUALITY**

(Unaudited)

**Allowance for Credit Losses** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| **Allowance for credit losses** |  |  |  |  |  |  |  |
| Beginning balances | $41268 | $39424 | $37433 | $37135 | $36363 | $37135 | $45153 |
| **Net loan charge-off (recoveries):** |  |  |  |  |  |  |  |
| Multifamily residential | 132 |  | (1) |  |  | 131 | 33 |
| Commercial real estate |  |  |  |  |  |  | 64 |
| One-to-four family – mixed-use property |  |  |  |  | 1 |  | (100) |
| One-to-four family – residential | 17 | 2 | (2) | (2) | (3) | 15 | (157) |
| Small Business Administration | (9) | (12) | 13 | 1015 | (7) | 1007 | (34) |
| Taxi medallion |  |  | (435) | (12) |  | (447) | 1301 |
| Commercial business and other | 671 | 300 | (76) | (66) | (20) | 829 | 2012 |
| &nbsp;&nbsp;Total  | 811 | 290 | (501) | 935 | (29) | 1535 | 3119 |
| &nbsp;&nbsp;Provision (benefit) for loan losses | (15) | 2134 | 1490 | 1233 | 743 | 4842 | (4899) |
| &nbsp;&nbsp;Ending balance | $40442 | $41268 | $39424 | $37433 | $37135 | $40442 | $37135 |
| Gross charge-offs | $1938 | $324 | $50 | $1036 | $7 | $3348 | $5134 |
| Gross recoveries | 1127 | 34 | 551 | 101 | 36 | 1813 | 2015 |
| Allowance for credit losses to gross loans | 0.58% | 0.59% | 0.58% | 0.57% | 0.56% | 0.58% | 0.56% |
| Net loan charge-offs (recoveries) to average loans | 0.05 | 0.02 | (0.03) | 0.06 |  | 0.02 | 0.05 |

---

**Nonperforming Assets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 |
| **Loans 90 Days Or More Past Due and** <br>**Still Accruing:** |  |  |  |  |  |
| Commercial real estate | $— | $2000 | $— | $— | $— |
| Construction | 2600 |  |  |  |  |
| Commercial business and other |  |  | 100 |  |  |
| &nbsp;&nbsp;Total | 2600 | 2000 | 100 |  |  |
| **Nonaccrual Loans:** |  |  |  |  |  |
| Multifamily residential | 3206 | 3414 | 3414 | 3414 | 2431 |
| Commercial real estate | 237 | 1851 | 242 | 5 | 613 |
| One-to-four family - mixed-use property <sup>(1)</sup> | 790 | 790 | 790 | 790 | 1309 |
| One-to-four family - residential | 4425 | 4655 | 5055 | 7387 | 7725 |
| Construction |  |  | 856 |  |  |
| Small Business Administration | 937 | 937 | 937 | 937 | 937 |
| Commercial business and other<sup>(1)</sup> | 20187 | 15356 | 16554 | 1533 | 1918 |
| &nbsp;&nbsp;Total | 29782 | 27003 | 27848 | 14066 | 14933 |
| &nbsp;&nbsp;**Total Nonperforming Loans (NPLs)** | 32382 | 29003 | 27948 | 14066 | 14933 |
| &nbsp;&nbsp;**Total Nonaccrual HTM Securities** | 20981 | 20981 | 20981 |  |  |
| &nbsp;&nbsp;**Total Nonperforming Assets** | $53363 | $49984 | $48929 | $14066 | $14933 |
| Nonperforming Assets to Total Assets | 0.63% | 0.58% | 0.59% | 0.17% | 0.19% |
| Allowance for Credit Losses to NPLs | 124.9% | 142.3% | 141.1% | 266.1% | 248.7% |

---

------

 <sup>(1)</sup> Not included in the above analysis are nonaccrual performing TDR one-to-four family - mixed use property loans totaling $0.2 million in 4Q22 and in 3Q22 and $0.3 million each in 2Q22, 1Q22, 4Q21; nonaccrual performing TDR commercial business loans totaling less than $0.1 million in 4Q22, $2.9 million in 3Q22, $2.8 million in 2Q22 and 1Q22, and less than $0.1 million in 4Q21.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540014

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS**

<u>Non-cash Fair Value Adjustments to GAAP Earnings</u>

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 and swaps designated to protect against rising rates. As the swaps get closer to maturity, the volatility in fair value adjustments will dissipate. In a rising interest rate environment or a steepening of the yield curve, the loss position would experience an improvement. In a declining interest rate environment, the movement in the curve exaggerates our mark-to-market loss position.

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 these are measures commonly used by financial institutions, regulators and investors to measure the capital adequacy of financial institutions. The Company believes these measures facilitate comparison of the quality and composition of the Company's capital over time and in comparison to its competitors. These measures should not be viewed as a substitute for total shareholders' equity.

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

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540015

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS**

(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
| *(Dollars in thousands,*  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *except per share data)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| GAAP income before income taxes | $12819 | $32422 | $34971 | $24640 | $22826 | $104852 | $109278 |
| Net (gain) loss from fair value adjustments (Noninterest income (loss)) | 622 | (5626) | (2533) | 1809 | 5140 | (5728) | 12995 |
| Net (gain) loss on sale of securities (Noninterest income (loss)) | 10948 |  |  |  |  | 10948 | (113) |
| Life insurance proceeds <br>(Noninterest income (loss)) | (286) |  | (1536) |  |  | (1822) |  |
| Net gain on disposition of assets (Noninterest income (loss)) | (104) |  |  |  |  | (104) | (621) |
| Net (gain) loss from fair value adjustments on qualifying hedges <br>(Interest and fees on loans) | (936) | (28) | 60 | 129 | (1122) | (775) | (2079) |
| Net amortization of purchase accounting adjustments (Various)  | (219) | (650) | (237) | (924) | (324) | (2030) | (2489) |
| Merger (benefit) expense (Various)  |  |  |  |  | (17) |  | 2562 |
| Core income before taxes | 22844 | 26118 | 30725 | 25654 | 26503 | 105341 | 119533 |
| Provision for income taxes for core income | 5445 | 7165 | 9207 | 6685 | 5535 | 28502 | 30769 |
| Core net income | $17399 | $18953 | $21518 | $18969 | $20968 | $76839 | $88764 |
| GAAP diluted earnings per common share | $0.34 | $0.76 | $0.81 | $0.58 | $0.58 | $2.50 | $2.59 |
| Net (gain) loss from fair value adjustments, net of tax | 0.02 | (0.13) | (0.06) | 0.04 | 0.13 | (0.14) | 0.31 |
| Net loss on sale of securities, net of tax | 0.27 |  |  |  |  | 0.26 |  |
| Life insurance proceeds | (0.01) |  | (0.05) |  |  | (0.06) |  |
| Net gain on disposition of assets, net of tax |  |  |  |  |  |  | (0.01) |
| Net (gain) loss from fair value adjustments on qualifying hedges, net of tax | (0.02) |  |  |  | (0.03) | (0.02) | (0.05) |
| Net amortization of purchase accounting adjustments, net of tax | (0.01) | (0.02) | (0.01) | (0.02) | (0.01) | (0.05) | (0.06) |
| Merger (benefit) expense, net of tax |  |  |  |  |  |  | 0.06 |
| NYS tax change  |  |  |  |  |  |  | (0.02) |
| Core diluted earnings per common share<sup>(1)</sup> | $0.57 | $0.62 | $0.70 | $0.61 | $0.67 | $2.49 | $2.81 |
| Core net income, as calculated above | $17399 | $18953 | $21518 | $18969 | $20968 | $76839 | $88764 |
| Average assets | 8518019 | 8442657 | 8211763 | 8049470 | 8090701 | 8307137 | 8143372 |
| Average equity | 676165 | 674282 | 667456 | 673012 | 671474 | 672742 | 648946 |
| Core return on average assets<sup>(2)</sup> | 0.82% | 0.90% | 1.05% | 0.94% | 1.04% | 0.92% | 1.09% |
| Core return on average equity<sup>(2)</sup> | 10.29% | 11.24% | 12.90% | 11.27% | 12.49% | 11.42% | 13.68% |

---

------

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

<sup>(2)</sup> Ratios are calculated on an annualized basis.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540016

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**RECONCILIATION OF GAAP REVENUE and PRE-PROVISION** 

**PRE-TAX NET REVENUE** 

(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| GAAP Net interest income | $54201 | $61206 | $64730 | $63479 | $62674 | $243616 | $247969 |
| Net (gain) loss from fair value adjustments on qualifying hedges | (936) | (28) | 60 | 129 | (1122) | (775) | (2079) |
| Net amortization of purchase accounting adjustments | (342) | (775) | (367) | (1058) | (462) | 3016 | (3049) |
| Core Net interest income | $52923 | $60403 | $64423 | $62550 | $61090 | $245857 | $242841 |
| GAAP Noninterest income (loss) | $(7652) | $8995 | $7353 | $1313 | $(280) | $10009 | $3687 |
| Net (gain) loss from fair value adjustments | 622 | (5626) | (2533) | 1809 | 5140 | (5728) | 12995 |
| Net gain (loss) on sale of securities | 10948 |  |  |  |  | 10948 | (113) |
| Life insurance proceeds | (286) |  | (1536) |  |  | (1822) |  |
| Net gain on sale of assets | (104) |  |  |  |  | (104) | (621) |
| Core Noninterest income | $3528 | $3369 | $3284 | $3122 | $4860 | $13303 | $15948 |
| GAAP Noninterest expense | $33742 | $35634 | $35522 | $38794 | $38807 | $143692 | $147322 |
| Net amortization of purchase accounting adjustments | (123) | (125) | (130) | (134) | (138) | (578) | (560) |
| Merger expense (benefit)  |  |  |  |  | 17 |  | (2562) |
| Core Noninterest expense | $33619 | $35509 | $35392 | $38660 | $38686 | $143114 | $144200 |
| Net interest income | $54201 | $61206 | $64730 | $63479 | $62674 | $243616 | $247969 |
| Noninterest income (loss) | (7652) | 8995 | 7353 | 1313 | (280) | 10009 | 3687 |
| Noninterest expense | (33742) | (35634) | (35522) | (38794) | (38807) | (143692) | (147322) |
| Pre-provision pre-tax net revenue | $12807 | $34567 | $36561 | $25998 | $23587 | $109933 | $104334 |
| Core: |  |  |  |  |  |  |  |
| Net interest income | $52923 | $60403 | $64423 | $62550 | $61090 | $245857 | $242841 |
| Noninterest income | 3528 | 3369 | 3284 | 3122 | 4860 | 13303 | 15948 |
| Noninterest expense | (33619) | (35509) | (35392) | (38660) | (38686) | (143114) | (144200) |
| Pre-provision pre-tax net revenue | $22832 | $28263 | $32315 | $27012 | $27264 | $116046 | $114589 |
| Efficiency Ratio | 59.6% | 55.7% | 52.3% | 58.9% | 58.7% | 55.2% | 55.7% |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540017

------

![Graphic](ffic-20230126xex99002.jpg)

**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 three months ended  | For the three months ended  | For the three months ended  | For the three months ended  | For the year ended  | For the year ended  |
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  | December 31,  | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 | 2022 | 2021 |
| GAAP net interest income | $54201 | $61206 | $64730 | $63479 | $62674 | $243616 | $247969 |
| Net (gain) loss from fair value adjustments on qualifying hedges | (936) | (28) | 60 | 129 | (1122) | (775) | (2079) |
| Net amortization of purchase accounting adjustments | (342) | (775) | (367) | (1058) | (462) | 3016 | (3049) |
| Tax equivalent adjustment | 102 | 104 | 131 | 124 | 113 | 461 | 450 |
| Core net interest income FTE | $53025 | $60507 | $64554 | $62674 | $61203 | $246318 | $243291 |
| Total average interest-earning assets <sup>(1)</sup> | $8050601 | $7984558 | $7746640 | $7577053 | $7634601 | $7841407 | $7681441 |
| Core net interest margin FTE | 2.63% | 3.03% | 3.33% | 3.31% | 3.21% | 3.14% | 3.17% |
| GAAP interest income on total loans, net | $81033 | $75546 | $69192 | $67516 | $68113 | $293287 | $274331 |
| Net (gain) loss from fair value adjustments on qualifying hedges | (936) | (28) | 60 | 129 | (1122) | (775) | (2079) |
| Net amortization of purchase accounting adjustments | (372) | (783) | (357) | (1117) | (535) | 2628 | (3013) |
| Core interest income on total loans, net | $79725 | $74735 | $68895 | $66528 | $66456 | $295140 | $269239 |
| Average total loans, net <sup>(1)</sup> | $6886900 | $6867758 | $6647131 | $6586253 | $6566654 | $6748165 | $6653980 |
| Core yield on total loans | 4.63% | 4.35% | 4.15% | 4.04% | 4.05% | 4.37% | 4.05% |

---

------

<sup>(1)</sup> Excludes purchase accounting average balances for all periods presented.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540018

------

![Graphic](ffic-20230126xex99002.jpg)

**FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES**

**CALCULATION OF TANGIBLE STOCKHOLDERS'**

**COMMON EQUITY to TANGIBLE ASSETS**

(Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | December 31,  | September 30, | June 30, | March 31, | December 31,  |
| *(Dollars in thousands)* | 2022 | 2022 | 2022 | 2022 | 2021 |
| Total Equity | $677157 | $670719 | $670812 | $675813 | $679628 |
| Less: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | (17636) | (17636) | (17636) | (17636) | (17636) |
| &nbsp;&nbsp;&nbsp;&nbsp;Core deposit Intangibles | (2017) | (2147) | (2282) | (2420) | (2562) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible deferred tax liabilities |  |  |  | 328 | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible Stockholders' Common Equity | $657504 | $650936 | $650894 | $656085 | $659758 |
| Total Assets | $8422946 | $8557419 | $8339587 | $8169833 | $8045911 |
| Less: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | (17636) | (17636) | (17636) | (17636) | (17636) |
| &nbsp;&nbsp;&nbsp;&nbsp;Core deposit Intangibles | (2017) | (2147) | (2282) | (2420) | (2562) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible deferred tax liabilities |  |  |  | 328 | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tangible Assets | $8403293 | $8537636 | $8319669 | $8150105 | $8026041 |
| Tangible Stockholders' Common Equity to Tangible Assets | 7.82% | 7.62% | 7.82% | 8.05% | 8.22% |

---

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-540019

------