EX-99.1 2 ffic-20220127ex99106eb2a.htm EX-99.1

Exhibit 99.1

0	● ●
	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 4Q21 GAAP EPS of $0.58 and Core EPS of $0.67 Record GAAP and Core EPS for 2021
UNIONDALE, N.Y., January 27, 2022 (GLOBE NEWSWIRE) - The Company reported fourth quarter 2021 GAAP EPS of $0.58, up 427% YoY, ROAA of 0.89%, and ROAE of 10.77%. For the fourth quarter, Core EPS of $0.67 increased, 16% YoY with ROAA of 1.04% and ROAE of 12.49%. Record GAAP and Core EPS for 2021 of $2.59 and $2.81, respectively.
“2021 was a record year for earnings but it was also a challenging year for employees dealing with the pandemic and a new working environment. Our people continued to tirelessly navigate these challenges, as they supported and served customers, and masterfully executed our strategic objectives. Our employees are our competitive advantage. As a reward for our record year of earnings and employee performance through the pandemic, the Company recorded a one-time increase in compensation and benefits of $4.3 million for all employees. We are looking forward to an exciting year in 2022.” - John R. Buran, President and CEO
Slight NIM Compression QoQ; Loan Growth Returns. Net interest income of $62.7 million increased 12.5% YoY, but declined 1.1% QoQ. NIM expanded 21 bps to 3.29% YoY, but declined 5 bps from 3Q21. Core NIM increased by 18 bps to 3.21% YoY and compressed 6 bps QoQ. The decline in the NIM QoQ was primarily due to an unfavorable shift in balance sheet mix with high levels of interest-earning deposits and federal funds sold, which was fully deployed by the end of the year. Loans, excluding SBA Paycheck Protection Program (“PPP”), increased 3.7% annualized in 4Q21 and loan closings were up 49% QoQ. Our loan pipeline, which grew 21% YoY, declined 19% QoQ from the record 3Q21 level of $530.7 million. With the yield curve steepening and the Federal Reserve expected to increase short-term rates, we expect refinance volumes will slow in 2022. Additionally, we continue to benefit from the merger disruption in our markets as we have hired 24 people (including 9 revenue producers) in 2021 from institutions involved with mergers. We are looking forward to additional expansion opportunities in 2022. Returned 56% of Earnings in 4Q21; Capital Ratios Increase. The Company repurchased 150,976 shares of common stock at an average price of $23.75. Cash returned to shareholders through dividends and share repurchases was 56% of earnings in 4Q21. TCE/TA¹ improved to 8.22% in 4Q21 from 8.04% in 3Q21 and 7.52% in 4Q20. Our capital priorities remain unchanged: 1) profitably grow the balance sheet, 2) return dividends to shareholders, and 3) opportunistically repurchase shares.

¹ See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP
Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”

Key Financial Metrics²


	4Q21	3Q21	2Q21	1Q21	4Q20
GAAP:
EPS	$0.58	$0.81	$0.61	$0.60	$0.11
ROAA (%)	0.89	1.26	0.93	0.93	0.18
ROAE (%)	10.77	15.42	11.95	12.29	2.27
NIM FTE³ (%)	3.29	3.34	3.14	3.18	3.08
Core:
EPS	$0.67	$0.88	$0.73	$0.54	$0.58
ROAA (%)	1.04	1.38	1.11	0.83	0.92
ROAE (%)	12.49	16.88	14.27	10.96	11.67
Core NIM FTE (%)	3.21	3.27	3.14	3.06	3.03
Efficiency Ratio (%)	58.7	52.3	53.4	58.6	57.6
Credit Quality:
NPAs/Loans&REO (%)	0.23	0.31	0.26	0.31	0.31
LLRs/Loans (%)	0.56	0.55	0.64	0.67	0.67
LLRs/NPLs (%)	248.66	179.86	242.55	212.87	214.27
NCOs/Avg Loans (%)	(0.00)	(0.04)	0.05	0.17	0.04
Balance Sheet:
Avg Loans ($B)	$6.6	$6.6	$6.7	$6.7	$6.4
Avg Dep ($B)	$6.5	$6.4	$6.5	$6.3	$5.5
Book Value/Share	$22.26	$21.78	$21.16	$20.65	$20.11
Tangible BV/Share	$21.61	$21.13	$20.51	$19.99	$19.45
TCE/TA (%)	8.22	8.04	7.80	7.60	7.52

¹ Tangible Common Equity (“TCE”)/Total Assets (“TA”) ²See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.” ³ Net Interest Margin (“NIM”) Fully Taxable Equivalent (“FTE”)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌1

4Q21 Highlights

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Net interest income declined 1.1% QoQ (as asset yields decreased greater than funding costs), but increased 12.5% YoY to $62.7 million; core net interest income fell 1.6% QoQ and increased 11.7% YoY to $61.1 million

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Net interest margin FTE decreased 5 bps QoQ but increased 21 bps YoY to 3.29%, and core net interest margin FTE declined 6 bps QoQ, but expanded 18 bps YoY to 3.21%; Core NIM compression QoQ was primarily from lower loan yields and a less favorable earning asset mix, partially offset by lower funding costs

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Period end net loans excluding PPP, were up 0.9% QoQ and 0.2% YoY; loan closings were $362.7 million in 4Q21, up 48.7% QoQ and 14.8% YoY

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Average deposits increased 0.8% QoQ and 17.1% YoY to $6.5 billion, with core deposits 85.3% of total average deposits

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Loan pipeline increased 21.1% YoY to $429.3 million

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Provision for credit losses was $0.8 million due to current period loan originations and the increased risk from the COVID-19 Omicron variant

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NPAs decreased 26.1% QoQ and 29.3% YoY to $14.9 million; criticized and classified loans were down 16.3% QoQ to $57.7 million, representing 0.87% of loans

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Tangible Common Equity to Tangible Assets improved 18 bps to 8.22% from 8.04% in 3Q21

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Repurchased 150,976 shares at an average price of $23.75; dividends and share repurchases were 56% of net income in 4Q21

¹ See “Reconciliation of GAAP Earnings and Core Earnings” and “Reconciliation of GAAP
Net Interest Margin to Core and Base Net Interest Income and Net Interest Margin.”

Income Statement Highlights


						YoY		QoQ
($000s, except EPS)	4Q21	3Q21	2Q21	1Q21	4Q20	Change		Change

Net Interest Income	$62,674	$63,364	$61,039	$60,892	$55,732	12.5	%	(1.1)	%
Provision (Benefit) for Credit Losses	761	(6,927)	(1,598)	2,820	3,862	(80.3)		(111.0)
Non-interest Income (Loss)	(280)	866	(3,210)	6,311	(1,181)	(76.3)		(132.3)
Non-interest Expense	38,807	36,345	34,011	38,159	46,811	(17.1)		6.8
Income Before Income Taxes	22,826	34,812	25,416	26,224	3,878	488.6		(34.4)
Provision for Income Taxes	4,743	9,399	6,158	7,185	417	1,037.4		(49.5)
Net Income	$18,083	$25,413	$19,258	$19,039	$3,461	422.5		(28.8)
Diluted EPS	$0.58	$0.81	$0.61	$0.60	$0.11	427.3		(28.4)
Avg. Diluted Shares (000s)	31,353	31,567	31,677	31,604	30,603	2.5		(0.7)

Core Net Income¹	$20,968	$27,829	$22,994	$16,973	$17,784	17.9		(24.7)
Core EPS¹	$0.67	$0.88	$0.73	$0.54	$0.58	15.5		(23.9)

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $62.7 million in 4Q21 (an increase of 12.5% YoY, but a decrease of 1.1% QoQ), compared to $63.4 million in 3Q21, $61.0 million in 2Q21, $60.9 million in 1Q21, and $55.7 million in 4Q20.

●

Net interest margin, FTE (“NIM”) of 3.29% increased 21 bps YoY, but declined 5 bps QoQ; PPP loans caused a 3 bps and 2 bps positive impact on the NIM in 4Q21 and 3Q21, respectively, neutral impact in 2Q21, and a drag of 4 bps in 1Q21 and 3 bps in 4Q20

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Prepayment penalty income from loans and securities, net reversals and recoveries of interest from non-accrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $3.1 million (16 bps to the NIM) in 4Q21 compared to $3.4 million (19 bps) in 3Q21, $1.9 million (10 bps) in 2Q21, $3.3 million (17 bps) in 1Q21, and $2.1 million (11 bps) in 4Q20

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Excluding the items in the previous bullet, net interest margin was 3.13% in 4Q21 compared to 3.15% in 3Q21, 3.04% in 2Q21, 3.01% in 1Q21, and 2.97% in 4Q20, or an increase of 16 bps YoY, but a decrease of 2 bps QoQ

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Net PPP loan fees were $1.2 million in 4Q21, $1.3 million in 3Q21, $1.2 million in 2Q21, $0.5 million in 1Q21, and $0.4 million in 4Q20

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

The Company recorded a provision for credit losses of $0.8 million in 4Q21, $2.8 million in 1Q21, and $3.9 million in 4Q20 compared to a benefit for credit losses of $6.9 million in 3Q21 and $1.6 million in 2Q21.

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4Q21 provision for credit losses was driven by the current period originations and the increased risk from the COVID-19 Omicron variant

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Net charge-offs (recoveries) were $(29) thousand in 4Q21 (negligible as compared to average loans), $(0.6) million in 3Q21 ((4) bps), $0.9 million in 2Q21 (5 bps), $2.9 million in 1Q21 (17 bps), and $0.6 million in 4Q20 (4 bps)

Non-interest income (loss) was $(0.3) million in 4Q21, $0.9 million in 3Q21, $(3.2) million in 2Q21, $6.3 million in 1Q21, and $(1.2) million in 4Q20.

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Non-interest income included net gains (losses) from fair value adjustments of $(5.1) million in 4Q21 or $(0.13) per share, net of tax, $(2.3) million in 3Q21 or $(0.05) per share, net of tax, $(6.5) million or $(0.15) per share, net of tax in 2Q21, $1.0 million or $0.02 per share, net of tax in 1Q21, and $(4.1) million or $(0.11) per share, net of tax in 4Q20

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Absent all above items and other immaterial adjustments, core non-interest income was $4.9 million in 4Q21, up 36.6% YoY, and 53.6% QoQ

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Included in 4Q21 core non-interest income was a one-time $2.0 million ($0.05 per share, net of tax) dividend received on retirement plan investments

Non-interest expense totaled $38.8 million in 4Q21 (a decrease of 17.1% YoY, but an increase of 6.8% QoQ), compared to $36.3 million in 3Q21, $34.0 million in 2Q21, $38.2 million in 1Q21, and $46.8 million in 4Q20.

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4Q21 non-interest expense includes pre-tax merger benefits of $17 thousand (<$0.01 per share, net of tax)

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3Q21 non-interest expense includes $2.1 million of pre-tax merger charges ($0.05 per share, net of tax)

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2Q21 non-interest expense includes $0.5 million of pre-tax merger benefits primarily related to a refund received from a data processing vendor ($(0.01) per share, net of tax)

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1Q21 non-interest expense includes $1.0 million of pre-tax merger charges ($0.02 per share, net of tax); 1Q21 includes $3.3 million of seasonal compensation expense

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4Q20 non-interest expense includes $5.3 million pre-tax merger charges ($0.14 per share, net of tax) and $7.8 million pre-tax debt prepayment penalties ($0.20 per share, net of tax)

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Excluding the above items and other immaterial adjustments, core operating expenses were $38.7 million in 4Q21, up 15.4% YoY and 13.4% QoQ

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Included in 4Q21 non-interest expense was a one-time $4.3 million ($0.11 per share, net of tax) of increased compensation and benefits for all employees due to record year of earnings in 2021 and employee performance through the pandemic.

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The efficiency ratio was 58.7% in 4Q21, 52.3% in 3Q21, 53.4% in 2Q21, 58.6% in 1Q21, and 57.6% in 4Q20

The provision for income taxes was $4.7 million in 4Q21, compared to $9.4 million in 3Q21, $6.2 million in 2Q21, $7.2 million in 1Q21, and $0.4 million in 4Q20.

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The effective tax rate was 20.8% in 4Q21, 27.0% in 3Q21, 24.2% in 2Q21, 27.4% in 1Q21, and 10.8% in 4Q20

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

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The 2Q21 effective tax rate includes $0.8 million benefit from a state tax rate change; absent this benefit the effective tax rate would have been 27.2%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌3

Balance Sheet, Credit Quality, and Capital Highlights


						YoY		QoQ
	4Q21	3Q21	2Q21	1Q21	4Q20	Change		Change
Average Loans And Deposits ($MM)
Loans	$6,558	$6,633	$6,687	$6,700	$6,376	2.9	%	(1.1)	%
Deposits	6,459	6,408	6,511	6,285	5,515	17.1		0.8

Credit Quality ($000s)
Nonperforming Loans	$14,934	$20,217	$17,592	$21,186	$21,073	(29.1)	%	(26.1)	%
Nonperforming Assets	14,934	20,217	17,592	21,221	21,108	(29.2)		(26.1)
Criticized and Classified Loans	57,650	68,913	69,161	63,095	71,656	(19.5)		(16.3)
Criticized and Classified Assets	78,628	89,889	90,135	63,130	71,691	9.7		(12.5)
Allowance for Credit Losses/Loans (%)	0.56	0.55	0.64	0.67	0.67	(11)	bps	1	bps

Capital
Book Value/Share	$22.26	$21.78	$21.16	$20.65	$20.11	10.7	%	2.2	%
Tangible Book Value/Share	21.61	21.13	20.51	19.99	19.45	11.1		2.3
Tang. Common Equity/Tang. Assets (%)	8.22	8.04	7.80	7.60	7.52	70	bps	18	bps
Leverage Ratio (%)	8.98	8.83	8.50	8.44	8.38	60		15

Average loans were $6.6 billion, an increase of 2.9% YoY, but a decline of 1.1% QoQ.

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Total loan closings were $362.7 million in 4Q21, $243.9 million in 3Q21, $324.4 million in 2Q21, $322.9 million in 1Q21, and $316.0 million in 4Q20

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The loan pipeline of $429.3 million at December 31, 2021 was up 21.1% YoY, but down 19.1% QoQ as the third quarter 2021 pipeline was at record levels

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PPP loans were $77.4 million at 4Q21, $130.8 million at 3Q21, $197.3 million at 2Q21, $251.0 million at 1Q21, and $151.9 million at 4Q20; forgiven PPP loans were $53.4 million in 4Q21, $66.5 million in 3Q21, $69.2 million in 2Q21, $24.1 million in 1Q21, and $19.7 million in 4Q20; remaining unamortized net PPP fees were $1.9 million at December 31, 2021

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Period end net loans, excluding PPP loans, totaled $6.5 billion, up 0.2% YoY and 0.9% QoQ

Average Deposits totaled $6.5 billion, increasing 17.1% YoY and 0.8% QoQ.

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Average core deposits (non-CD deposits) increased to 85.3% of total average deposits (including escrow deposits) in 4Q21, compared to 79.8% a year ago

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Average non-interest bearing deposits increased 33.6% YoY and 4.6% QoQ and comprised 15.1% of total average deposits (including escrow deposits) in 4Q21 compared to 13.3% a year ago

Credit Quality: Non-performing loans totaled $14.9 million in 4Q21, $20.2 million in 3Q21, $17.6 million in 2Q21, $21.2 million in 1Q21, and $21.1 million in 4Q20.

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Non-performing assets were down 29.3% YoY and 26.1% QoQ

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Criticized and classified loans totaled $57.7 million in 4Q21 (87 bps of loans), $68.9 million in 3Q21 (104 bps of loans), $69.2 million at 2Q21 (103 bps), $63.1 million at 1Q21 (94 bps), and $71.7 million at 4Q20 (107 bps)

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Criticized and classified assets are composed of criticized and classified loans, as detailed above, plus one criticized investment security totaling $21.0 million in both 4Q21 and 3Q21, which is currently under a principal payment forbearance agreement (interest payments are received)

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Loans classified as troubled debt restructured (TDR) totaled $12.7 million in 4Q21 compared to $13.1 million in 3Q21 and $15.7 million a year ago

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Over 87% of gross loans are collateralized by real estate with an average loan-to-value ratio of <38% as of December 31, 2021

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Allowance for credit losses were 0.56% of loans at 4Q21 compared to 0.55% at 3Q21 and 0.67% a year ago

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Allowance for credit losses were 248.7% of nonperforming loans at 4Q21 compared to 179.9% at 3Q21 and 214.3% a year ago

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌4

Capital: Book value per common share increased to $22.26 at 4Q21, compared to $21.78 at 3Q21, $21.16 at 2Q21, $20.65 at 1Q21, and $20.11 at 4Q20; tangible book value per common share, a non-GAAP measure, was $21.61 in 4Q21, $21.13 at 3Q21, $20.51 at 2Q21, $19.99 at 1Q21, and $19.45 in 4Q20.

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The Company paid a dividend of $0.21 per share and repurchased 150,976 shares at an average price of $23.75 in 4Q21

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As of the end of 4Q21, 848,187 shares remain subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit

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Tangible common equity to tangible assets was 8.22% at 4Q21 compared to 8.04% at 3Q21 and 7.52% a year ago

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

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The leverage ratio was 8.98% in 4Q21 versus 8.83% in 3Q21 and 8.38% in 4Q20

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌5

Conference Call Information And First Quarter Earnings Release Date

Conference Call Information:

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John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, will host a conference call on Friday, January 28, 2022, at 11:00 AM (ET) to discuss the Company’s fourth quarter 2021 results and strategy.

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

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Webcast: https://services.choruscall.com/links/ffic220128.html

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

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Replay Access Code: 4089423

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The conference call will be simultaneously webcast and archived

First Quarter 2022 Earnings Release Date:

The Company plans to release First Quarter 2022 financial results after the market close on April 26, 2022; followed by a conference call at 9:30 AM (ET) on April 27, 2022.

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, 2020 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

#FF

- Statistical Tables Follow -

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)


	At or for the three months ended															At or for the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share data)	2021			2021			2021			2021			2020			2021			2020
Performance Ratios ⁽¹⁾
Return on average assets		0.89	%		1.26	%		0.93	%		0.93	%		0.18	%		1.00	%		0.48	%
Return on average equity		10.77			15.42			11.95			12.29			2.27			12.60			5.98
Yield on average interest-earning assets ⁽²⁾		3.77			3.84			3.69			3.77			3.82			3.77			3.86
Cost of average interest-bearing liabilities		0.58			0.61			0.66			0.69			0.86			0.63			1.16
Cost of funds		0.50			0.53			0.57			0.61			0.77			0.55			1.06
Net interest rate spread during period⁽²⁾		3.19			3.23			3.03			3.08			2.96			3.14			2.70
Net interest margin ⁽²⁾		3.29			3.34			3.14			3.18			3.08			3.24			2.85
Non-interest expense to average assets		1.92			1.80			1.65			1.87			2.43			1.81			1.90
Efficiency ratio ⁽³⁾		58.66			52.28			53.38			58.58			57.56			55.72			58.69
Average interest-earning assets to average interest-bearing liabilities		1.22	X		1.21	X		1.19	X		1.18	X		1.17	X		1.20	X		1.16	X

Average Balances
Total loans, net	$	6,558,285		$	6,633,301		$	6,686,888		$	6,700,476		$	6,375,516		$	6,644,317		$	6,005,947
Total interest-earning assets		7,627,256			7,608,317			7,790,174			7,667,217			7,243,472			7,672,954			6,862,798
Total assets		8,090,701			8,072,918			8,263,553			8,147,714			7,705,407			8,143,372			7,276,022
Total due to depositors		5,397,802			5,406,423			5,495,936			5,363,647			4,708,760			5,416,020			4,509,206
Total interest-bearing liabilities		6,276,221			6,310,859			6,532,891			6,477,871			6,169,574			6,398,666			5,941,594
Stockholders' equity		671,474			659,288			644,690			619,647			609,463			648,946			580,067

Per Share Data
Book value per common share ⁽⁴⁾	$	22.26		$	21.78		$	21.16		$	20.65		$	20.11		$	22.26		$	20.11
Tangible book value per common share ⁽⁵⁾	$	21.61		$	21.13		$	20.51		$	19.99		$	19.45		$	21.61		$	19.45

Stockholders' Equity
Stockholders' equity	$	679,628		$	668,096		$	655,167		$	639,201		$	618,997		$	679,628		$	618,997
Tangible stockholders' equity		659,758			648,039			634,959			618,839			598,476			659,758			598,476

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	726,174		$	711,276		$	697,591		$	679,343		$	662,987		$	726,174		$	662,987
Common equity Tier 1 capital		671,494			661,340			649,367			636,071			621,247			671,494			621,247
Total risk-based capital		885,469			832,255			823,494			806,922			794,034			885,469			794,034
Risk Weighted Assets		6,182,095			6,194,207			6,344,076			6,281,136			6,287,598			6,182,095			6,287,598

Tier 1 leverage capital (well capitalized = 5%)		8.98	%		8.83	%		8.50	%		8.44	%		8.38	%		8.98	%		8.38	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.86			10.68			10.24			10.13			9.88			10.86			9.88
Tier 1 risk-based capital (well capitalized = 8.0%)		11.75			11.48			11.00			10.82			10.54			11.75			10.54
Total risk-based capital (well capitalized = 10.0%)		14.32			13.44			12.98			12.85			12.63			14.32			12.63

Capital Ratios
Average equity to average assets		8.30	%		8.17	%		7.80	%		7.61	%		7.91	%		7.97	%		7.97	%
Equity to total assets		8.45			8.27			8.03			7.83			7.76			8.45			7.76
Tangible common equity to tangible assets ⁽⁶⁾		8.22			8.04			7.80			7.60			7.52			8.22			7.52

Asset Quality
Non-accrual loans ⁽⁷⁾	$	14,933		$	18,292		$	17,391		$	18,604		$	18,325		$	14,933		$	18,325
Non-performing loans		14,933			20,217			17,592			21,186			21,073			14,933			21,073
Non-performing assets		14,933			20,217			17,592			21,221			21,108			14,933			21,108
Net charge-offs (recoveries)		(29)			(619)			902			2,865			646			3,119			3,639

Asset Quality Ratios
Non-performing loans to gross loans		0.23	%		0.31	%		0.26	%		0.31	%		0.31	%		0.23	%		0.31	%
Non-performing assets to total assets		0.19			0.25			0.22			0.26			0.26			0.19			0.26
Allowance for loan losses to gross loans		0.56			0.55			0.64			0.67			0.67			0.56			0.67
Allowance for loan losses to non-performing assets		248.66			179.86			242.55			212.52			213.91			248.66			213.91
Allowance for loan losses to non-performing loans		248.66			179.86			242.55			212.87			214.27			248.66			214.27
Net charge-offs (recoveries) to average loans		(0.00)			(0.04)			0.05			0.17			0.04			0.05			0.06

Full-service customer facilities		24			24			25			25			25			24			25

(See footnotes on next page)

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌7

⁽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 non-interest 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 non-interest income (excluding life insurance proceeds, net gains and losses from the sale or disposition of securities, assets and fair value adjustments).

⁽⁴⁾ Calculated by dividing stockholders’ equity by shares outstanding.

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

⁽⁶⁾ See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.

⁽⁷⁾ Excludes performing non-accrual TDR loans.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the three months ended										For the year ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(In thousands, except per share data)	2021		2021		2021		2021		2020		2021		2020
Interest and Dividend Income
Interest and fees on loans	$	68,113	$	69,198	$	67,999	$	69,021	$	66,120	$	274,331	$	248,153
Interest and dividends on securities:
Interest		3,536		3,706		3,685		3,072		2,813		13,999		15,776
Dividends		7		7		7		8		8		29		43
Other interest income		74		42		51		36		30		203		355
Total interest and dividend income		71,730		72,953		71,742		72,137		68,971		288,562		264,327

Interest Expense
Deposits		3,975		4,705		5,539		6,105		6,470		20,324		42,312
Other interest expense		5,081		4,884		5,164		5,140		6,769		20,269		26,816
Total interest expense		9,056		9,589		10,703		11,245		13,239		40,593		69,128

Net Interest Income		62,674		63,364		61,039		60,892		55,732		247,969		195,199
Provision (benefit) for credit losses		761		(6,927)		(1,598)		2,820		3,862		(4,944)		23,129
Net Interest Income After Provision (Benefit) for Credit Losses		61,913		70,291		62,637		58,072		51,870		252,913		172,070

Non-interest Income (Loss)
Banking services fee income		1,142		865		1,233		2,725		1,442		5,965		4,500
Net gain (loss) on sale of securities		—		(10)		123		—		(610)		113		(701)
Net gain on sale of loans		46		131		127		31		6		335		48
Net gain on disposition of assets		—		—		—		621		—		621		—
Net gain (loss) from fair value adjustments		(5,140)		(2,289)		(6,548)		982		(4,129)		(12,995)		(2,142)
Federal Home Loan Bank of New York stock dividends		417		491		500		689		734		2,097		3,453
Life insurance proceeds		—		—		—		—		—		—		659
Bank owned life insurance		1,023		1,015		1,009		997		1,016		4,044		3,814
Other income		2,232		663		346		266		360		3,507		1,412
Total non-interest income (loss)		(280)		866		(3,210)		6,311		(1,181)		3,687		11,043

Non-interest Expense
Salaries and employee benefits		25,223		20,544		19,879		22,664		22,089		88,310		74,228
Occupancy and equipment		3,579		3,534		3,522		3,367		3,446		14,002		12,134
Professional services		1,152		1,899		1,988		2,400		2,463		7,439		9,374
FDIC deposit insurance		391		618		729		1,213		562		2,951		2,676
Data processing		1,757		1,759		1,419		2,109		3,411		7,044		8,586
Depreciation and amortization		1,521		1,627		1,638		1,639		1,579		6,425		6,212
Other real estate owned/foreclosure (recoveries) expense		129		182		22		(10)		95		323		216
Prepayment penalty on borrowings		—		—		—		—		7,834		—		7,834
Other operating expenses		5,055		6,182		4,814		4,777		5,332		20,828		16,671
Total non-interest expense		38,807		36,345		34,011		38,159		46,811		147,322		137,931

Income Before Provision for Income Taxes		22,826		34,812		25,416		26,224		3,878		109,278		45,182

Provision for Income Taxes		4,743		9,399		6,158		7,185		417		27,485		10,508

Net Income	$	18,083	$	25,413	$	19,258	$	19,039	$	3,461	$	81,793	$	34,674

Basic earnings per common share	$	0.58	$	0.81	$	0.61	$	0.60	$	0.11	$	2.59	$	1.18
Diluted earnings per common share	$	0.58	$	0.81	$	0.61	$	0.60	$	0.11	$	2.59	$	1.18
Dividends per common share	$	0.21	$	0.21	$	0.21	$	0.21	$	0.21	$	0.84	$	0.84

Basic average shares		31,353		31,567		31,677		31,604		30,603		31,550		29,301
Diluted average shares		31,353		31,567		31,677		31,604		30,603		31,550		29,301

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in thousands)	2021		2021		2021		2021		2020
ASSETS
Cash and due from banks	$	81,723	$	178,598	$	145,971	$	174,420	$	157,388
Securities held-to-maturity:
Mortgage-backed securities		7,894		7,899		7,904		7,909		7,914
Other securities		49,974		49,989		49,986		49,912		49,918
Securities available for sale:
Mortgage-backed securities		572,184		584,145		596,661		518,781		404,460
Other securities		205,052		212,654		224,784		242,440		243,514
Loans		6,638,105		6,630,354		6,718,806		6,745,316		6,704,674
Allowance for loan losses		(37,135)		(36,363)		(42,670)		(45,099)		(45,153)
Net loans		6,600,970		6,593,991		6,676,136		6,700,217		6,659,521
Interest and dividends receivable		38,698		40,912		43,803		44,941		44,041
Bank premises and equipment, net		23,338		24,018		26,438		27,498		28,179
Federal Home Loan Bank of New York stock		35,937		36,158		41,630		41,498		43,439
Bank owned life insurance		210,754		184,730		183,715		182,707		181,710
Goodwill		17,636		17,636		17,636		17,636		17,636
Core deposit intangibles		2,562		2,708		2,859		3,013		3,172
Right of use asset		50,200		50,155		51,972		53,802		50,743
Other assets		148,989		93,741		89,850		94,410		84,759
Total assets	$	8,045,911	$	8,077,334	$	8,159,345	$	8,159,184	$	7,976,394

LIABILITIES
Deposits	$	6,333,532	$	6,421,391	$	6,298,790	$	6,326,577	$	6,090,733
Mortgagors' escrow deposits		51,913		67,207		58,230		74,348		45,622
Borrowed funds		815,544		752,925		971,827		948,920		1,020,895
Operating lease liability		54,155		54,239		56,151		58,080		59,100
Other liabilities		111,139		113,476		119,180		112,058		141,047
Total liabilities		7,366,283		7,409,238		7,504,178		7,519,983		7,357,397

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		263,375		262,009		260,958		260,019		261,533
Treasury stock		(75,293)		(71,738)		(65,335)		(65,479)		(69,400)
Retained earnings		497,889		486,418		467,620		455,023		442,789
Accumulated other comprehensive loss, net of taxes		(6,684)		(8,934)		(8,417)		(10,703)		(16,266)
Total stockholders' equity		679,628		668,096		655,167		639,201		618,997

Total liabilities and stockholders' equity	$	8,045,911	$	8,077,334	$	8,159,345	$	8,159,184	$	7,976,394

(In thousands)
Issued shares		34,088		34,088		34,088		34,088		34,088
Outstanding shares		30,526		30,676		30,962		30,954		30,776
Treasury shares		3,561		3,412		3,126		3,133		3,312

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Unaudited)


	For the three months ended										For the year ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(In thousands)	2021		2021		2021		2021		2020		2021		2020
Interest-earning Assets:
Mortgage loans, net	$	5,140,233	$	5,158,213	$	5,130,400	$	5,155,975	$	5,010,097	$	5,146,195	$	4,798,232
Other loans, net		1,418,052		1,475,088		1,556,488		1,544,501		1,365,419		1,498,122		1,207,715
Total loans, net		6,558,285		6,633,301		6,686,888		6,700,476		6,375,516		6,644,317		6,005,947
Taxable securities:
Mortgage-backed securities		595,538		590,732		578,134		433,917		413,875		550,136		450,065
Other securities		207,482		217,763		232,020		300,828		266,663		239,208		249,533
Total taxable securities		803,020		808,495		810,154		734,745		680,538		789,344		699,598
Tax-exempt securities:
Other securities		50,834		50,832		50,830		50,828		50,768		50,831		56,530
Total tax-exempt securities		50,834		50,832		50,830		50,828		50,768		50,831		56,530
Interest-earning deposits and federal funds sold		215,117		115,689		242,302		181,168		136,650		188,462		100,723
Total interest-earning assets		7,627,256		7,608,317		7,790,174		7,667,217		7,243,472		7,672,954		6,862,798
Other assets		463,445		464,601		473,379		480,497		461,935		470,418		413,224
Total assets	$	8,090,701	$	8,072,918	$	8,263,553	$	8,147,714	$	7,705,407	$	8,143,372	$	7,276,022

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	154,471	$	153,120	$	153,113	$	170,079	$	163,382	$	157,640	$	176,443
NOW accounts		2,115,619		2,107,866		2,255,581		2,185,384		1,924,840		2,165,762		1,603,402
Money market accounts		2,177,928		2,107,473		2,043,257		1,905,543		1,507,245		2,059,431		1,561,496
Certificate of deposit accounts		949,784		1,037,964		1,043,985		1,102,641		1,113,293		1,033,187		1,167,865
Total due to depositors		5,397,802		5,406,423		5,495,936		5,363,647		4,708,760		5,416,020		4,509,206
Mortgagors' escrow accounts		84,617		68,562		91,545		65,372		75,005		77,552		70,829
Total interest-bearing deposits		5,482,419		5,474,985		5,587,481		5,429,019		4,783,765		5,493,572		4,580,035
Borrowings		793,802		835,874		945,410		1,048,852		1,385,809		905,094		1,361,559
Total interest-bearing liabilities		6,276,221		6,310,859		6,532,891		6,477,871		6,169,574		6,398,666		5,941,594
Non interest-bearing demand deposits		976,803		933,443		923,220		856,052		731,170		922,741		583,235
Other liabilities		166,203		169,328		162,752		194,144		195,200		173,019		171,126
Total liabilities		7,419,227		7,413,630		7,618,863		7,528,067		7,095,944		7,494,426		6,695,955
Equity		671,474		659,288		644,690		619,647		609,463		648,946		580,067
Total liabilities and equity	$	8,090,701	$	8,072,918	$	8,263,553	$	8,147,714	$	7,705,407	$	8,143,372	$	7,276,022

Net interest-earning assets	$	1,351,035	$	1,297,458	$	1,257,283	$	1,189,346	$	1,073,898	$	1,274,288	$	921,204

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌11

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

NET INTEREST INCOME AND NET INTEREST MARGIN

(Unaudited)


	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020			2021			2020
Interest Income:
Mortgage loans, net	$	54,260		$	55,114		$	52,987		$	55,219		$	53,777		$	217,580		$	202,722
Other loans, net		13,853			14,084			15,012			13,802			12,343			56,751			45,431
Total loans, net		68,113			69,198			67,999			69,021			66,120			274,331			248,153
Taxable securities:
Mortgage-backed securities		2,125			2,279			2,233			1,698			1,435			8,335			8,730
Other securities		993			1,008			1,037			963			957			4,001			5,178
Total taxable securities		3,118			3,287			3,270			2,661			2,392			12,336			13,908
Tax-exempt securities:
Other securities		538			539			535			530			543			2,142			2,419
Total tax-exempt securities		538			539			535			530			543			2,142			2,419
Interest-earning deposits and federal funds sold		74			42			51			36			30			203			355
Total interest-earning assets		71,843			73,066			71,855			72,248			69,085			289,012			264,835
Interest Expense:
Deposits:
Savings accounts	$	53		$	61		$	66		$	75		$	75		$	255		$	495
NOW accounts		1,021			1,227			1,499			1,706			1,320			5,453			9,309
Money market accounts		1,428			1,683			2,060			2,100			2,010			7,271			14,368
Certificate of deposit accounts		1,471			1,734			1,913			2,222			3,065			7,340			18,096
Total due to depositors		3,973			4,705			5,538			6,103			6,470			20,319			42,268
Mortgagors' escrow accounts		2			—			1			2			—			5			44
Total interest-bearing deposits		3,975			4,705			5,539			6,105			6,470			20,324			42,312
Borrowings		5,081			4,884			5,164			5,140			6,769			20,269			26,816
Total interest-bearing liabilities		9,056			9,589			10,703			11,245			13,239			40,593			69,128
Net interest income- tax equivalent	$	62,787		$	63,477		$	61,152		$	61,003		$	55,846		$	248,419		$	195,707
Included in net interest income above:
Prepayment penalties received on loans and securities and net of reversals and recovered interest from non-accrual loans	$	1,497		$	2,136		$	2,046		$	948		$	1,093		$	6,627		$	4,576
Net gains/(losses) from fair value adjustments on qualifying hedges included in loan interest income		1,122			194			(664)			1,427			1,023			2,079			(1,185)
Purchase accounting adjustments		462			1,100			565			922			11			3,049			11
Interest-earning Assets Yields:
Mortgage loans, net		4.22	%		4.27	%		4.13	%		4.28	%		4.29	%		4.23	%		4.22	%
Other loans, net		3.91			3.82			3.86			3.57			3.62			3.79			3.76
Total loans, net		4.15			4.17			4.07			4.12			4.15			4.13			4.13
Taxable securities:
Mortgage-backed securities		1.43			1.54			1.54			1.57			1.39			1.52			1.94
Other securities		1.91			1.85			1.79			1.28			1.44			1.67			2.08
Total taxable securities		1.55			1.63			1.61			1.45			1.41			1.56			1.99
Tax-exempt securities: ⁽¹⁾
Other securities		4.23			4.24			4.21			4.17			4.28			4.21			4.28
Total tax-exempt securities		4.23			4.24			4.21			4.17			4.28			4.21			4.28
Interest-earning deposits and federal funds sold		0.14			0.15			0.08			0.08			0.09			0.11			0.35
Total interest-earning assets		3.77	%		3.84	%		3.69	%		3.77	%		3.82	%		3.77	%		3.86	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.14	%		0.16	%		0.17	%		0.18	%		0.18	%		0.16	%		0.28	%
NOW accounts		0.19			0.23			0.27			0.31			0.27			0.25			0.58
Money market accounts		0.26			0.32			0.40			0.44			0.53			0.35			0.92
Certificate of deposit accounts		0.62			0.67			0.73			0.81			1.10			0.71			1.55
Total due to depositors		0.29			0.35			0.40			0.46			0.55			0.38			0.94
Mortgagors' escrow accounts		0.01			—			—			0.01			—			0.01			0.06
Total interest-bearing deposits		0.29			0.34			0.40			0.45			0.54			0.37			0.92
Borrowings		2.56			2.34			2.18			1.96			1.95			2.24			1.97
Total interest-bearing liabilities		0.58	%		0.61	%		0.66	%		0.69	%		0.86	%		0.63	%		1.16	%

Net interest rate spread (tax equivalent)		3.19	%		3.23	%		3.03	%		3.08	%		2.96	%		3.14	%		2.70	%
Net interest margin (tax equivalent)		3.29	%		3.34	%		3.14	%		3.18	%		3.08	%		3.24	%		2.85	%
Ratio of interest-earning assets to interest-bearing liabilities		1.22	X		1.21	X		1.19	X		1.18	X		1.17	X		1.20	X		1.16	X

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition


											December 2021 vs.		December 2021 vs.
	December 31,		September 30,		June 30,		March 31,		December 31,		September 2021		December 2020
(Dollars in thousands)	2021		2021		2021		2021		2020		% Change		% Change
Non-interest bearing	$	967,621	$	941,259	$	945,491	$	917,189	$	778,672	2.8	%	24.3	%
Interest bearing:
Certificate of deposit accounts		946,575		1,040,098		1,020,615		1,070,595		1,138,361	(9.0)		(16.8)
Savings accounts		156,554		152,306		152,931		170,272		168,183	2.8		(6.9)
Money market accounts		2,342,003		2,152,085		2,057,188		1,990,656		1,682,345	8.8		39.2
NOW accounts		1,920,779		2,135,643		2,122,565		2,177,865		2,323,172	(10.1)		(17.3)
Total interest-bearing deposits		5,365,911		5,480,132		5,353,299		5,409,388		5,312,061	(2.1)		1.0
Total deposits	$	6,333,532	$	6,421,391	$	6,298,790	$	6,326,577	$	6,090,733	(1.4)	%	4.0	%

Loan Composition


											December 2021 vs.		December 2021 vs.
	December 31,		September 30,		June 30,		March 31,		December 31,		September 2021		December 2020
(Dollars in thousands)	2021		2021		2021		2021		2020		% Change		% Change
Multifamily residential	$	2,517,026	$	2,498,980	$	2,542,010	$	2,525,967	$	2,533,952	0.7	%	(0.7)	%
Commercial real estate		1,775,629		1,745,855		1,726,895		1,721,702		1,754,754	1.7		1.2
One-to-four family ― mixed-use property		571,795		579,100		582,211		595,431		602,981	(1.3)		(5.2)
One-to-four family ― residential		268,255		280,343		288,652		239,391		245,211	(4.3)		9.4
Co-operative apartments		8,316		7,804		7,883		7,965		8,051	6.6		3.3
Construction		59,761		71,464		62,802		61,528		83,322	(16.4)		(28.3)
Mortgage Loans		5,200,782		5,183,546		5,210,453		5,151,984		5,228,271	0.3		(0.5)

Small Business Administration⁽¹⁾		93,811		148,855		215,158		267,120		167,376	(37.0)		(44.0)
Taxi medallion		—		—		—		—		2,757	—		(100.0)
Commercial business and other		1,339,273		1,294,688		1,291,526		1,326,657		1,303,225	3.4		2.8
Non-mortgage loans		1,433,084		1,443,543		1,506,684		1,593,777		1,473,358	(0.7)		(2.7)

Net unamortized premiums and unearned loan fees ⁽²⁾		4,239		3,265		1,669		(445)		3,045	29.8		39.2
Allowance for loan losses		(37,135)		(36,363)		(42,670)		(45,099)		(45,153)	2.1		(17.8)
Net loans	$	6,600,970	$	6,593,991	$	6,676,136	$	6,700,217	$	6,659,521	0.1	%	(0.9)	%

⁽¹⁾ Includes $77.4 million, $130.8 million, $197.3 million, $251.0 million, and $151.9 million of PPP loans at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

⁽²⁾ Includes $8.0 million, $8.6 million, $9.7 million, $10.5 million, and $11.3 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings


	For the three months ended										For the year ended
	December 31,		September 30,		June 30,		March 31,		December 31,			December 31,	December 31,
(In thousands)	2021		2021		2021		2021		2020		2021		2020
Multifamily residential	$	79,648	$	41,850	$	66,913	$	58,553	$	52,024	$	246,964	$	212,729
Commercial real estate		64,916		48,447		37,963		17,156		57,634		168,482		191,852
One-to-four family – mixed-use property		12,440		12,823		7,135		8,712		9,692		41,110		35,131
One-to-four family – residential		5,162		2,761		59,494		3,131		8,422		70,548		21,805
Co-operative apartments		413		—		—		—		—		413		704
Construction		17,033		8,687		5,281		7,123		6,869		38,124		21,859
Mortgage Loans		179,612		114,568		176,786		94,675		134,641		565,641		484,080

Small Business Administration⁽¹⁾		270		415		17,585		125,093		598		143,363		112,352
Commercial business and other		182,858		128,946		130,036		103,118		180,787		544,958		407,725
Non-mortgage Loans		183,128		129,361		147,621		228,211		181,385		688,321		520,077

Total Closings	$	362,740	$	243,929	$	324,407	$	322,886	$	316,026	$	1,253,962	$	1,004,157

⁽¹⁾ Includes $15.5 million and $123.2 million of PPP closings for the three months ended June 30, 2021 and March 31, 2021, respectively and $138.7 million and $111.6 million for the years ended December 31 2021 and 2020, respectively.

Weighted Average Rate on Loan Closings


	For the three months ended
	December 31,		September 30,		June 30,		March 31,		December 31,
Loan type	2021		2021		2021		2021		2020
Mortgage loans	3.77	%	3.80	%	3.53	%	3.47	%	3.47	%
Non-mortgage loans	3.24		3.49		3.23		2.26		3.37
Total loans	3.51	%	3.64	%	3.39	%	2.62	%	3.41	%

Excluding PPP loans	3.51	%	3.64	%	3.51	%	3.62	%	3.41	%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌14

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Loan Losses


	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020			2021			2020
Allowance for loan losses
Beginning balances	$	36,363		$	42,670		$	45,099		$	45,153		$	38,343			45,153			21,751
Adoption of Current Expected Credit Losses		—			—			—			—			—			—			379

Net loan charge-off (recoveries):
Multifamily residential		—			—			—			33			(11)		$	33		$	(38)
Commercial real estate		—			—			—			64			—			64			—
One-to-four family – mixed-use property		1			(123)			3			19			—			(100)			(135)
One-to-four family – residential		(3)			(147)			(2)			(5)			(2)			(157)			(12)
Small Business Administration		(7)			(8)			(9)			(10)			(3)			(34)			108
Taxi medallion		—			(1,235)			(222)			2,758			124			1,301			1,075
Commercial business and other		(20)			894			1,132			6			538			2,012			2,641
Total		(29)			(619)			902			2,865			646			3,119			3,639

(Benefit) provision for loan losses		743			(6,926)			(1,527)			2,811			3,357			(4,899)			22,563
Allowance recorded at the time of Acquisition		—			—			—			—			4,099			—			4,099

Ending balance	$	37,135		$	36,363		$	42,670		$	45,099		$	45,153		$	37,135		$	45,153

Gross charge-offs	$	7		$	1,019		$	1,186		$	2,922		$	752		$	5,134		$	4,005
Gross recoveries		36			1,638			284			57			106			2,015			366

Allowance for loan losses to gross loans		0.56	%		0.55	%		0.64	%		0.67	%		0.67	%		0.56	%		0.67	%
Net loan charge-offs (recoveries) to average loans		(0.00)			(0.04)			0.05			0.17			0.04			0.05			0.06

Non-Performing Assets


	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020
Loans 90 Days Or More Past Due and Still Accruing:
Multifamily residential	$	—		$	—		$	201		$	201		$	201
Commercial real estate		—			—			—			—			2,547
Construction		—			873			—			2,381			—
Commercial business and other		—			1,052			—			—			—
Total		—			1,925			201			2,582			2,748

Non-accrual Loans:
Multifamily residential		2,431			4,192			4,669			4,338			2,524
Commercial real estate		613			613			8			8			1,683
One-to-four family - mixed-use property ⁽¹⁾		1,309			2,204			2,309			2,355			1,366
One-to-four family - residential		7,725			7,807			6,940			7,335			5,854
Small Business Administration		937			976			976			1,151			1,151
Taxi medallion⁽¹⁾		—			—			—			—			2,317
Commercial business and other⁽¹⁾		1,918			2,500			2,489			3,417			3,430
Total		14,933			18,292			17,391			18,604			18,325

Total Non-performing Loans (NPLs)		14,933			20,217			17,592			21,186			21,073

Other Non-performing Assets:
Other asset acquired through foreclosure		—			—			—			35			35
Total		—			—			—			35			35

Total Non-performing Assets	$	14,933		$	20,217		$	17,592		$	21,221		$	21,108

Non-performing Assets to Total Assets		0.19	%		0.25	%		0.22	%		0.26	%		0.26	%
Allowance For Loan Losses to NPLs		248.7	%		179.9	%		242.6	%		212.9	%		214.3	%

⁽¹⁾Not included in the above analysis are non-accrual performing TDR one-to-four family mixed use property loans totaling $0.3 million each in 4Q21, 3Q21, 2Q21, 1Q21, and 4Q20; non-accrual performing TDR taxi medallion loans totaling $0.4 million in 4Q20, and non-accrual performing TDR commercial business loans totaling $2.2 million each in 2Q21, 1Q21, and 4Q20.

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌15

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

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, Base Net Interest Income FTE, Base Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Base Interest Income and Yield on Total Loans, Core Non-interest Income, Core Non-interest 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 non-interest 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, 718-961-5400‌16

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)


	For the three months ended															For the year ended
(Dollars in thousands,	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
except per share data)	2021			2021			2021			2021			2020			2021			2020

GAAP income before income taxes	$	22,826		$	34,812		$	25,416		$	26,224		$	3,878		$	109,278		$	45,182

Day 1, Provision for Credit Losses - Empire transaction (Provision for credit losses)		—			—			—			—			1,818			—			1,818
Net (gain) loss from fair value adjustments (Non-interest income (loss))		5,140			2,289			6,548			(982)			4,129			12,995			2,142
Net (gain) loss on sale of securities (Non-interest income (loss))		—			10			(123)			—			610			(113)			701
Life insurance proceeds (Non-interest income (loss))		—			—			—			—			—			—			(659)
Net gain on disposition of assets (Non-interest income (loss))		—			—			—			(621)			—			(621)			—
Net (gain) loss from fair value adjustments on qualifying hedges (Interest and fees on loans)		(1,122)			(194)			664			(1,427)			(1,023)			(2,079)			1,185
Prepayment penalty on borrowings (Non-interest expense)		—			—			—			—			7,834			—			7,834
Net amortization of purchase accounting adjustments (Various)		(324)			(958)			(418)			(789)			80			(2,489)			80
Merger (benefit) expense (Various)		(17)			2,096			(490)			973			5,349			2,562			6,894

Core income before taxes		26,503			38,055			31,597			23,378			22,675			119,533			65,177

Provision for income taxes for core income		5,535			10,226			8,603			6,405			4,891			30,769			15,428

Core net income	$	20,968		$	27,829		$	22,994		$	16,973		$	17,784		$	88,764		$	49,749

GAAP diluted earnings per common share	$	0.58		$	0.81		$	0.61		$	0.60		$	0.11		$	2.59		$	1.18
Day 1, Provision for Credit Losses - Empire transaction, net of tax		—			—			—			—			0.05			—			0.05
Net (gain) loss from fair value adjustments, net of tax		0.13			0.05			0.15			(0.02)			0.11			0.31			0.06
Net loss on sale of securities, net of tax		—			—			—			—			0.02			—			0.02
Life insurance proceeds		—			—			—			—			—			—			(0.02)
Net gain on disposition of assets, net of tax		—			—			—			(0.01)			—			(0.01)			—
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		(0.03)			—			0.02			(0.03)			(0.03)			(0.05)			0.03
Prepayment penalty on borrowings, net of tax		—			—			—			—			0.20			—			0.20
Net amortization of purchase accounting adjustments, net of tax		(0.01)			(0.02)			(0.01)			(0.02)			—			(0.06)			—
Merger (benefit) expense, net of tax		—			0.05			(0.01)			0.02			0.14			0.06			0.18
NYS tax change		—			—			(0.02)			—			—			(0.02)			—

Core diluted earnings per common share⁽¹⁾	$	0.67		$	0.88		$	0.73		$	0.54		$	0.58		$	2.81		$	1.70


Core net income, as calculated above	$	20,968		$	27,829		$	22,994		$	16,973		$	17,784		$	88,764		$	49,749
Average assets		8,090,701			8,072,918			8,263,553			8,147,714			7,705,407			8,143,372			7,276,022
Average equity		671,474			659,288			644,690			619,647			609,463			648,946			580,067
Core return on average assets⁽²⁾		1.04	%		1.38	%		1.11	%		0.83	%		0.92	%		1.09	%		0.68	%
Core return on average equity⁽²⁾		12.49	%		16.88	%		14.27	%		10.96	%		11.67	%		13.68	%		8.58	%

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

⁽²⁾ Ratios are calculated on an annualized basis.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE and PRE-PROVISION

PRE-TAX NET REVENUE

(Unaudited)


	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020			2021			2020

GAAP Net interest income	$	62,674		$	63,364		$	61,039		$	60,892		$	55,732		$	247,969		$	195,199
Net (gain) loss from fair value adjustments on qualifying hedges		(1,122)			(194)			664			(1,427)			(1,023)			(2,079)			1,185
Net amortization of purchase accounting adjustments		(462)			(1,100)			(565)			(922)			(11)			(3,049)			(11)
Core Net interest income	$	61,090		$	62,070		$	61,138		$	58,543		$	54,698		$	242,841		$	196,373

GAAP Non-interest income (loss)	$	(280)		$	866		$	(3,210)		$	6,311		$	(1,181)		$	3,687		$	11,043
Net (gain) loss from fair value adjustments		5,140			2,289			6,548			(982)			4,129			12,995			2,142
Net loss on sale of securities		—			10			(123)			—			610			(113)			701
Life insurance proceeds		—			—			—			—			—			—			(659)
Net gain on sale of assets		—			—			—			(621)			—			(621)			—
Core Non-interest income	$	4,860		$	3,165		$	3,215		$	4,708		$	3,558		$	15,948		$	13,227

GAAP Non-interest expense	$	38,807		$	36,345		$	34,011		$	38,159		$	46,811		$	147,322		$	137,931
Prepayment penalty on borrowings		—			—			—			—			(7,834)			—			(7,834)
Net amortization of purchase accounting adjustments		(138)			(142)			(147)			(133)			(91)			(560)			(91)
Merger (benefit) expense		17			(2,096)			490			(973)			(5,349)			(2,562)			(6,894)
Core Non-interest expense	$	38,686		$	34,107		$	34,354		$	37,053		$	33,537		$	144,200		$	123,112

Net interest income	$	62,674		$	63,364		$	61,039		$	60,892		$	55,732		$	247,969		$	195,199
Non-interest income (loss)		(280)			866			(3,210)			6,311			(1,181)			3,687			11,043
Non-interest expense		(38,807)			(36,345)			(34,011)			(38,159)			(46,811)			(147,322)			(137,931)
Pre-provision pre-tax net revenue	$	23,587		$	27,885		$	23,818		$	29,044		$	7,740		$	104,334		$	68,311

Core:
Net interest income	$	61,090		$	62,070		$	61,138		$	58,543		$	54,698		$	242,841		$	196,373
Non-interest income		4,860			3,165			3,215			4,708			3,558			15,948			13,227
Non-interest expense		(38,686)			(34,107)			(34,354)			(37,053)			(33,537)			(144,200)			(123,112)
Pre-provision pre-tax net revenue	$	27,264		$	31,128		$	29,999		$	26,198		$	24,719		$	114,589		$	86,488
Efficiency Ratio		58.7	%		52.3	%		53.4	%		58.6	%		57.6	%		55.7	%		58.7	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN

to CORE and BASE NET INTEREST INCOME

(Unaudited)


	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2021			2021			2021			2021			2020			2021			2020
GAAP net interest income	$	62,674		$	63,364		$	61,039		$	60,892		$	55,732		$	247,969		$	195,199
Net (gain) loss from fair value adjustments on qualifying hedges		(1,122)			(194)			664			(1,427)			(1,023)			(2,079)			1,185
Net amortization of purchase accounting adjustments		(462)			(1,100)			(565)			(922)			(11)			(3,049)			(11)
Tax equivalent adjustment		113			113			113			111			114			450			508
Core net interest income FTE	$	61,203		$	62,183		$	61,251		$	58,654		$	54,812		$	243,291		$	196,881
Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from non-accrual loans		(1,497)			(2,136)			(2,046)			(948)			(1,093)			(6,627)			(4,576)
Base net interest income FTE	$	59,706		$	60,047		$	59,205		$	57,706		$	53,719		$	236,664		$	192,305

Total average interest-earning assets ⁽¹⁾	$	7,634,601		$	7,616,332		$	7,799,176		$	7,676,833		$	7,245,147		$	7,681,441		$	6,863,219
Core net interest margin FTE		3.21	%		3.27	%		3.14	%		3.06	%		3.03	%		3.17	%		2.87	%
Base net interest margin FTE		3.13	%		3.15	%		3.04	%		3.01	%		2.97	%		3.08	%		2.80	%

GAAP interest income on total loans, net	$	68,113		$	69,198		$	67,999		$	69,021		$	66,120		$	274,331		$	248,153
Net (gain) loss from fair value adjustments on qualifying hedges		(1,122)			(194)			664			(1,427)			(1,023)			(2,079)			1,185
Net amortization of purchase accounting adjustments		(535)			(1,126)			(624)			(728)			(356)			(3,013)			(356)
Core interest income on total loans, net	$	66,456		$	67,878		$	68,039		$	66,866		$	64,741		$	269,239		$	248,982
Prepayment penalties received on loans, net of reversals and recoveries of interest from non-accrual loans		(1,497)			(2,135)			(2,046)			(947)			(1,093)			(6,625)			(4,501)
Base interest income on total loans, net	$	64,959		$	65,743		$	65,993		$	65,919		$	63,648		$	262,614		$	244,481

Average total loans, net ⁽¹⁾	$	6,566,654		$	6,642,434		$	6,697,103		$	6,711,446		$	6,379,429		$	6,653,980		$	6,006,931
Core yield on total loans		4.05	%		4.09	%		4.06	%		3.99	%		4.06	%		4.05	%		4.14	%
Base yield on total loans		3.96	%		3.96	%		3.94	%		3.93	%		3.99	%		3.95	%		4.07	%

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

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

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)	2021			2021			2021			2021			2020
Total Equity	$	679,628		$	668,096		$	655,167		$	639,201		$	618,997
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit Intangibles		(2,562)			(2,708)			(2,859)			(3,013)			(3,172)
Intangible deferred tax liabilities		328			287			287			287			287
Tangible Stockholders' Common Equity	$	659,758		$	648,039		$	634,959		$	618,839		$	598,476

Total Assets	$	8,045,911		$	8,077,334		$	8,159,345		$	8,159,184		$	7,976,394
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(17,636)
Core deposit Intangibles		(2,562)			(2,708)			(2,859)			(3,013)			(3,172)
Intangible deferred tax liabilities		328			287			287			287			287
Tangible Assets	$	8,026,041		$	8,057,277		$	8,139,137		$	8,138,822		$	7,955,873

Tangible Stockholders' Common Equity to Tangible Assets		8.22	%		8.04	%		7.80	%		7.60	%		7.52	%

Investor Contact: Susan K. Cullen, SEVP, CFO and Treasurer, 718-961-5400‌20