Flushing Financial Corporation Reports 1Q24 GAAP and Core EPS of $0.12 and $0.14, Respectively; Excellent Quality Driven by Low Risk Credit Profile

Rhea-AI Summary

Flushing Financial reports solid 1Q24 financial results with GAAP and Core EPS of $0.12 and $0.14, respectively, driven by an excellent quality low-risk credit profile. The company highlights its strong performance over its 95-year history.

Positive

• Strong 1Q24 financial results with GAAP EPS of $0.12 and Core EPS of $0.14
• Excellent quality attributed to a low-risk credit profile
• Company's performance highlighted over a 95-year history

Negative

• None.

Insights

Financial Analyst

Flushing Financial Corporation's reported GAAP EPS of $0.12 and core EPS of $0.14 for the first quarter of 2024 may not seem particularly high at first glance. However, for savvy investors, the devil is often in the details. These figures indicate a level of operational performance that warrants a closer look. The distinction between GAAP (Generally Accepted Accounting Principles) earnings and core earnings indicates management adjustments for non-recurring items, providing a clearer view of ongoing business performance.

Investors should note the emphasis on the company's low risk credit profile. In banking, a low risk credit profile often translates into lower provision expenses for loan losses, suggesting stable asset quality. Additionally, the history of performance over an extensive period such as 95 years may be indicative of an inherent institutional strength and resilience to market fluctuations. Yet, it's important to scrutinize whether this trend holds in the current economic context marked by concerns over rising interest rates and their potential impact on loan growth and credit quality.

Credit Analyst

From a credit perspective, it's important to drill down into Flushing Financial Corporation’s claim of an excellent quality driven by a low risk credit profile. A low risk profile typically implies a conservative lending approach, higher-than-average creditworthiness of borrowers and a diversified loan portfolio that is not overly exposed to any single industry or borrower.

For individual investors, understanding the company's risk management practices is key. It's important to determine how the company assesses and prices for risk, especially during uncertain economic times. This approach could indeed shield the bank from potential non-performing assets, but it could also limit revenue growth in a competitive lending environment. The balance between risk and growth is a delicate dance for any financial institution.

"We take pride in what we believe is our low risk credit profile that has performed well over our 95-year history. While there have been increased concerns about commercial real estate loans, especially New York City office and rent regulated multifamily exposure, hallmarks of our risk averse credit culture are demonstrated by only $4,000 of net charge-offs, 24 bps of 30-89 day delinquencies to gross loans, and decreased criticized and classified loans of 23% and flat NPAs during 1Q24. The drivers of this excellent credit performance are centered in our conservative underwriting with 89% of the portfolio secured by real estate, average LTV ratios of less than 36%, multifamily and investor commercial real estate weighted average DCRs of 1.8x, and strong sponsor support. Our exposure to New York City office buildings is very low - approximately 0.5% of total loans, all of which are performing. Our multifamily portfolio has only 18 bps of NPLs, 41 bps of 30-89 day delinquencies, and 54 bps of criticized and classified loans. Additionally, over 99% of our real estate loans that repriced in 1Q24 are current. Our conservative lending profile has served us well. We believe the foundation for our long-term success is pillared by our four areas of focus, which include 1) increasing NIM and reducing volatility; 2) maintaining credit discipline; 3) preserving strong liquidity and capital; and 4) bending the expense curve. While there is more work to do, we continue to make progress and are committed to achieving these goals."

- John R. Buran, President and CEO

UNIONDALE, NY / ACCESSWIRE / April 23, 2024 / Growth in Average Deposits; GAAP and Core NIM Compress. The Company reported first quarter 2024 GAAP and Core EPS of $0.12 and $0.14, respectively, compared to $0.13, and $0.06, respectively, a year ago. 1Q24 GAAP and Core NIM were both 2.06%, down 21 bps and 19 bps YoY, and 23 bps and 25 bps QoQ, respectively. Absent episodic items¹, the NIM was 2.01% in 1Q24 compared to 2.21% a year ago and 2.14% in the prior quarter. The expected NIM compression was driven by CD repricing, the absence of loan originations that met both our underwriting and pricing criteria, and increased cash from deposit growth. Average total deposits increased 4.0% YoY and 2.9% QoQ,

Credit Quality Improves; Capital Remains Solid. Criticized and classified loans to loans declined to 0.87% in 1Q24, compared to 1.11% in 4Q23, while nonperforming assets to total assets decreased to 53 bps compared to 54 bps in 4Q23. Net charge-offs were only $4,000 in 1Q24. Capital continues to be sound with TCE/TA² of 7.40% at 1Q24 compared to 7.64% at 4Q23.

Key Financial Metrics³

			1Q24			4Q23			3Q23			2Q23			1Q23
GAAP:
EPS		$	0.12		$	0.27		$	0.26		$	0.29		$	0.13
ROAA (%)			0.17			0.38			0.37			0.41			0.19
ROAE (%)			2.20			4.84			4.64			5.16			2.37
NIM FTE4 (%)			2.06			2.29			2.22			2.18			2.27
Core:
EPS		$	0.14		$	0.25		$	0.25		$	0.26		$	0.06
ROAA (%)			0.20			0.35			0.36			0.37			0.09
ROAE (%)			2.58			4.51			4.49			4.70			1.11
Core NIM FTE (%)			2.06			2.31			2.13			2.17			2.25
Credit Quality:
NPAs/Loans & OREO (%)			0.68			0.67			0.56			0.58			0.61
ACLs/Loans (%)			0.60			0.58			0.57			0.57			0.56
ACLs/NPLs (%)			164.13			159.55			225.38			207.08			182.89
NCOs/Avg Loans (%)			-			-			-			0.09			0.54
Balance Sheet:
Avg Loans ($B)		$	6.8		$	6.9		$	6.8		$	6.8		$	6.9
Avg Dep ($B)		$	7.1		$	6.9		$	6.8		$	6.9		$	6.8
Book Value/Share		$	23.04		$	23.21		$	23.06		$	23.14		$	22.80
Tangible BV/Share		$	22.39		$	22.54		$	22.39		$	22.47		$	22.14
TCE/TA (%)			7.40			7.64			7.56			7.70			7.72

Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation.

¹ Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments ² Tangible Common Equity ("TCE")/Total Assets ("TA") ³ 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." ⁴ Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE").

1Q24 Highlights

• Net interest margin FTE decreased 21 bps YoY and 23 bps QoQ to 2.06%; Core net interest margin FTE decreased 19 bps YoY and 25 bps QoQ to 2.06%; absent prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion the NIM was 2.01% in 1Q24 compared to 2.21% in 1Q23 and 2.14% in 4Q23.
• Average total deposits increased 4.0% YoY and 2.9% QoQ to $7.1 billion; Average noninterest bearing deposits were 11.8% of total average deposits compared to 13.2% in 1Q23 and 12.7% in 4Q23. Average CDs were $2.4 billion, up 43.3% YoY and 2.8% QoQ; During March and April, new CD rates were lowered across most products.
• Period end net loans decreased 1.2% YoY and QoQ to $6.8 billion; Loan closings were $130.0 million down 25.1% YoY and 46.8% QoQ; The yields on closings increased 19 bps YoY, but decreased 49 bps QoQ to 7.20%; Back-to-back swap loan originations were $15.3 million compared to $121.6 million in 4Q23 and generated $0.2 million and $1.5 million of noninterest income, respectively; Loan pipeline decreased 34.6% YoY, but increased 6.7% QoQ to $173.9 million; Approximately 22% of the loan pipeline consists of back-to-back swap loans
• NPAs increased slightly to $46.3 million from $42.2 million a year ago and from $46.2 million in the prior quarter
• 1Q24 noninterest expense includes $1.6 million of seasonal compensation expense that are not expected to repeat in 2Q24
• Provision for credit losses was $0.6 million in 1Q24 compared to $7.5 million in 1Q23 and $1.0 million in 4Q23; Net charge-offs were $4,000 in 1Q24 compared to $9.2 million in 1Q23 and $60,000 in 4Q23
• Tangible Common Equity to Tangible Assets was 7.40% at March 31, 2024, compared to 7.64% at December 31, 2023; Tangible book value was $22.39 compared to $22.14 a year ago

Areas of Focus

Increase NIM and Reduce Volatility	GAAP and Core NIM decreased as anticipated by 23 bps and 25 bps QoQ, respectively, in 1Q24 Absent episodic items1, the NIM was 2.01% in 1Q24 compared to 2.14% in 4Q23 Remain largely interest rate neutral to a 100 bps change in rates Approximately 25% of the loan portfolio consists of floating rate loans (including interest rate hedges) Average noninterest bearing decreased 4.5% QoQ and accounted for 11.8% of average total deposits
Maintain Credit Discipline	Approximately 89% of the loan portfolio is collateralized by real estate with an average loan to value of less than 36% Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans NPAs are a low 53 bps of assets and criticized and classified loans are 0.87% of loans Manhattan office buildings exposure is minimal at 0.5% of net loans, none of which are nonperforming
Preserve Strong Liquidity and Capital	Maintaining ample liquidity with $2.9 billion of undrawn lines and resources as of March 31, 2024; this increased to $3.3 billion as of April 15, 2024 Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 34% of total deposits Total average deposits increased 4.0% YoY and 2.9% QoQ Checking account openings declined 20.6% YoY in 1Q24, but remain above 1Q22 levels Tangible Common Equity to Tangible Assets was 7.40% at March 31, 2024, down 24 bps QoQ Leverage ratio was 8.32% at March 31, 2024 compared to 8.47% at December 31, 2023
Bend the Expense Curve	GAAP noninterest expense to average assets was 1.83% in 1Q24 compared to 1.85% in 1Q23 and 1.90% in 4Q23 GAAP and Core noninterest expense growth was 1.9% YoY 1Q24 seasonal compensation expense was $1.6 million compared to $4.1 million a year ago

¹ Episodic items include prepayment penalty income, customer swap termination fees, net reversals and recovered interest from nonaccrual loans, net gain/loss from fair value on qualifying hedges, and purchase accounting adjustments, which totaled $1.0 million or 5 bps in 1Q24 compared to $3.0 million or 15 bps in 4Q23

Income Statemen

																	YoY			QoQ
($000s, except EPS)		1Q24			4Q23			3Q23			2Q23			1Q23			Change			Change
Net Interest Income		$	42,397		$	46,085		$	44,427		$	43,378		$	45,262			(6.3	)%		(8.0	)%
Provision for Credit Losses			592			998			596			1,416			7,508			(92.1	)		(40.7	)
Noninterest Income			3,084			7,402			3,309			5,020			6,857			(55.0	)		(58.3	)
Noninterest Expense			39,892			40,735			36,388			35,110			39,156			1.9			(2.1	)
Income Before Income Taxes			4,997			11,754			10,752			11,872			5,455			(8.4	)		(57.5	)
Provision for Income Taxes			1,313			3,655			2,917			3,186			1,411			(6.9	)		(64.1	)
Net Income		$	3,684		$	8,099		$	7,835		$	8,686		$	4,044			(8.9	)		(54.5	)
Diluted EPS		$	0.12		$	0.27		$	0.26		$	0.29		$	0.13			(7.7	)		(55.6	)
Avg. Diluted Shares (000s)			29,742			29,650			29,703			30,090			30,265			(1.7	)		0.3
Core Net Income1		$	4,312		$	7,546		$	7,571		$	7,912		$	1,889			128.3			(42.9	)
Core EPS1		$	0.14		$	0.25		$	0.25		$	0.26		$	0.06			133.3			(44.0	)

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income decreased YoY and QoQ.

• Net Interest Margin FTE of 2.06% decreased 21 bps YoY and 23 bps QoQ
• Prepayment penalty income, customer swap termination fees, net reversals and recoveries of interest from nonaccrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $1.0 million (5 bps to the NIM) compared to $3.0 million (15 bps) in 4Q23, $2.6 million (13 bps to the NIM) in 3Q23, $0.5 million (3 bps) in 2Q23, and $1.1 million (6 bps) in 1Q23
• Excluding the items in the previous bullet, net interest margin was 2.01% in 1Q24, 2.14% in 4Q23, 2.09% in 3Q23, 2.15% in 2Q23, and 2.21% in 1Q23

The provision for credit losses decreased YoY and QoQ.

• Net charge-offs (recoveries) were $4,000 (less than 1 bp of average loans) in 1Q24 compared to $60,000 in 4Q23 (less than 1 bp of average loans), $(42,000) in 3Q23 (less than (1) bp of average loans), $1.6 million in 2Q23 (9 bps of average loans), and $9.2 million in 1Q23 (54 bps of average loans)
• 1Q23 net charge-offs were primarily related to a commercial business relationship that was placed on nonaccrual in 2Q22

Noninterest income decreased YoY and QoQ.

• Back-to-back swap loan closings of $15.3 million in 1Q24 (compared to $121.6 million in 4Q23 and none in 1Q23) and generated $0.2 million of fee income compared to $1.5 million in 4Q23
• Net gains (losses) from fair value adjustments were $(0.8) million in 1Q24 ($(0.02) per share, net of tax), $0.9 million in 4Q23 ($0.02 per share, net of tax), $(1.2) million in 3Q23 ($(0.03) per share, net of tax), $0.3 million in 2Q23 ($0.01 per share, net of tax), and $2.6 million in 1Q23 ($0.06 per share, net of tax)
• Life insurance proceeds were $0.7 million in 4Q23 ($0.02 per share), $23,000 in 3Q23 (less than $0.01 per share), and $0.6 million ($0.02 per share) in 2Q23
• Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $3.9 million in 1Q24, down 7.6% YoY and 32.4% QoQ
• 4Q23 other fee income includes net realized gains on the sale of assets and other dividends from nonqualified plans that are expected to normalize in future periods

Noninterest expense increased slightly YoY but declined QoQ.

• Seasonal compensation expense was $1.6 million in 1Q24 compared to $4.1 million in 1Q23
• Excluding the effects of immaterial adjustments, core operating expenses were $39.8 million in 1Q24, up 1.9% YoY, but down 0.8% QoQ
• GAAP noninterest expense to average assets was 1.83% in 1Q24, 1.90% in 4Q23, 1.71% in 3Q23, 1.66% in 2Q23, and 1.85% in 1Q23

Provision for income taxes decreased YoY and QoQ.

• The effective tax rate was 26.3% in 1Q24, 31.1% in 4Q23, 27.1% in 3Q23, 26.8% in 2Q23, and 25.9% in 1Q23
• The 4Q23 effective tax rate increased as a result of preferential tax items having a smaller impact due to higher pre-tax income than estimated in 3Q23 and 2Q23

Balance Sheet, Credit Quality, and Capital Highlights

																	YoY				QoQ
		1Q24			4Q23			3Q23			2Q23			1Q23			Change				Change
Averages ($MM)
Loans		$	6,804		$	6,868		$	6,813		$	6,830		$	6,871			(1.0	)%		(0.9	)%
Total Deposits			7,081			6,884			6,819			6,900			6,810			4.0			2.9
Credit Quality ($000s)
Nonperforming Loans		$	24,829		$	25,172		$	17,405		$	18,637		$	21,176			17.3	%		(1.4	)%
Nonperforming Assets			46,254			46,153			38,386			39,618			42,157			9.7			0.2
Criticized and Classified Loans			59,021			76,719			74,169			48,675			58,130			1.5			(23.1	)
Criticized and Classified Assets			80,446			97,700			95,150			69,656			79,111			1.7			(17.7	)
Allowance for Credit Losses/Loans (%)			0.60			0.58			0.57			0.57			0.56			4	bps		2	bps
Capital
Book Value/Share		$	23.04		$	23.21		$	23.06		$	23.14		$	22.80			1.1	%		(0.7	)%
Tangible Book Value/Share			22.39			22.54			22.39			22.47			22.14			1.1			(0.7	)
Tang. Common Equity/Tang. Assets (%)			7.40			7.64			7.56			7.70			7.72			(32	)bps		(24	)bps
Leverage Ratio (%)			8.32			8.47			8.51			8.54			8.56			(24	)		(15	)

Average loans decreased slightly YoY and QoQ.

• Period end net loans totaled $6.8 billion, down 1.2% YoY and QoQ
• Total loan closings were $130.0 million in 1Q24, $244.3 million in 4Q23, $241.5 million in 3Q23, $158.8 million in 2Q23, and $173.5 million in 1Q23; the loan pipeline was $173.9 million at March 31, 2024, down 34.6% YoY, but up 6.7% QoQ
• The diversified loan portfolio is approximately 89% collateralized by real estate with an average loan-to-value ratio of <36%
• Manhattan office buildings exposure is minimal at 0.5% of net loans with all loans performing

Average total deposits increased YoY and QoQ.

• Average noninterest bearing deposits decreased 6.9% YoY and 4.5% QoQ and comprised 11.8% of average total deposits in 1Q24 compared to 13.2% a year ago
• Average CDs totaled $2.4 billion, up 43.3% YoY and 2.8% QoQ; approximately $450 million of non-swapped CDs are due to mature at a rate of 4.15% in 2Q24

Credit Quality: Nonperforming loans increased YoY but declined QoQ.

• Criticized and classified loans were 87 bps of gross loans at 1Q24 compared to 111 bps at 4Q23, 108 bps at 3Q23, 71 bps at 2Q23, and 84 bps at 1Q23
• Allowance for credit losses were 164.1% of nonperforming loans at 1Q24 compared to 182.9% at 1Q23 and 159.5% at 4Q23

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both increased 1.1% YoY to $23.04 and $22.39, respectively.

• The Company paid a dividend of $0.22 per share in 1Q24; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit
• Tangible common equity to tangible assets was 7.40% at March 31, 2024, compared to 7.72% at March 31, 2023, and 7.64% at December 31, 2023

Conference Call Information

Conference Call Information:

• John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Wednesday, April 24, 2024, at 9:30 AM (ET) to discuss the Company's first quarter results and strategy.
• Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
• Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=DCkbMHoc
• Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
• Replay Access Code: 7388314
• The conference call will be simultaneously webcast and archived

About Flushing Financial Corporation

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

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

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

#FF - Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

		At or for the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)		2024			2023			2023			2023			2023
Performance Ratios (1)
Return on average assets			0.17	%		0.38	%		0.37	%		0.41	%		0.19	%
Return on average equity			2.20			4.84			4.64			5.16			2.37
Yield on average interest-earning assets (2)			5.32			5.39			5.19			4.84			4.61
Cost of average interest-bearing liabilities			3.83			3.68			3.52			3.15			2.80
Cost of funds			3.42			3.26			3.13			2.80			2.47
Net interest rate spread during period (2)			1.49			1.71			1.67			1.69			1.81
Net interest margin (2)			2.06			2.29			2.22			2.18			2.27
Noninterest expense to average assets			1.83			1.90			1.71			1.66			1.85
Efficiency ratio (3)			86.07			76.69			76.76			73.82			79.52
Average interest-earning assets to average interest-bearing liabilities			1.17	X		1.19	X		1.18	X		1.18	X		1.19	X
Average Balances
Total loans, net		$	6,804,117		$	6,867,927		$	6,813,019		$	6,829,648		$	6,871,192
Total interest-earning assets			8,235,160			8,076,991			8,023,237			7,991,756			8,002,376
Total assets			8,707,505			8,569,002			8,505,346			8,462,442			8,468,317
Total deposits			7,081,498			6,884,037			6,819,397			6,899,617			6,810,485
Total interest-bearing liabilities			7,014,927			6,813,909			6,771,860			6,756,859			6,703,558
Stockholders' equity			669,185			669,819			675,041			672,835			683,058
Per Share Data
Book value per common share (4)		$	23.04		$	23.21		$	23.06		$	23.14		$	22.80
Tangible book value per common share (5)		$	22.39		$	22.54		$	22.39		$	22.47		$	22.14
Stockholders' Equity
Stockholders' equity		$	669,827		$	669,837		$	666,521		$	670,247		$	672,345
Tangible stockholders' equity			650,763			650,664			647,234			650,842			652,818
Consolidated Regulatory Capital Ratios
Tier 1 capital		$	734,192		$	737,732		$	736,744		$	734,754		$	736,024
Common equity Tier 1 capital			687,458			691,754			690,294			688,820			689,732
Total risk-based capital			965,796			967,627			965,532			962,784			964,270
Risk Weighted Assets			6,664,496			6,750,301			6,804,478			6,650,222			6,660,145
Tier 1 leverage capital (well capitalized = 5%)			8.32	%		8.47	%		8.51	%		8.54	%		8.56	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)			10.32			10.25			10.14			10.36			10.36
Tier 1 risk-based capital (well capitalized = 8.0%)			11.02			10.93			10.83			11.05			11.05
Total risk-based capital (well capitalized = 10.0%)			14.49			14.33			14.19			14.48			14.48
Capital Ratios
Average equity to average assets			7.69	%		7.82	%		7.94	%		7.95	%		8.07	%
Equity to total assets			7.61			7.85			7.77			7.91			7.93
Tangible common equity to tangible assets (6)			7.40			7.64			7.56			7.70			7.72
Asset Quality
Nonaccrual loans		$	24,829		$	23,709		$	17,405		$	18,637		$	21,176
Nonperforming loans			24,829			25,172			17,405			18,637			21,176
Nonperforming assets			46,254			46,153			38,386			39,618			42,157
Net charge-offs (recoveries)			4			60			(42	)		1,560			9,234
Asset Quality Ratios
Nonperforming loans to gross loans			0.36	%		0.36	%		0.25	%		0.27	%		0.31	%
Nonperforming assets to total assets			0.53			0.54			0.45			0.47			0.50
Allowance for credit losses to gross loans			0.60			0.58			0.57			0.57			0.56
Allowance for credit losses to nonperforming assets			88.10			87.02			102.19			97.41			91.87
Allowance for credit losses to nonperforming loans			164.13			159.55			225.38			207.08			182.89
Net charge-offs (recoveries) to average loans			-			-			-			0.09			0.54
Full-service customer facilities			27			27			27			26			26

⁽¹⁾ Ratios are presented on an annualized basis, where appropriate.

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

⁽³⁾ Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.

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

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

⁽⁶⁾ See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIE
CONSOLIDATED STATEMENTS OF INCOM
(Unaudited)

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except per share data)		2024			2023			2023			2023			2023
Interest and Dividend Income
Interest and fees on loans		$	92,959		$	95,616		$	91,466		$	85,377		$	82,889
Interest and dividends on securities:
Interest			12,541			10,803			10,383			9,172			7,240
Dividends			33			34			33			30			29
Other interest income			3,966			2,310			2,154			1,982			1,959
Total interest and dividend income			109,499			108,763			104,036			96,561			92,117
Interest Expense
Deposits			57,865			53,284			50,066			46,249			39,056
Other interest expense			9,237			9,394			9,543			6,934			7,799
Total interest expense			67,102			62,678			59,609			53,183			46,855
Net Interest Income			42,397			46,085			44,427			43,378			45,262
Provision for credit losses			592			998			596			1,416			7,508
Net Interest Income After Provision for Credit Losses			41,805			45,087			43,831			41,962			37,754
Noninterest Income
Banking services fee income			1,394			2,824			2,636			1,780			1,411
Net gain on sale of loans			110			-			-			54			54
Net gain (loss) from fair value adjustments			(834	)		906			(1,246	)		294			2,619
Federal Home Loan Bank of New York stock dividends			743			658			624			534			697
Life insurance proceeds			-			697			23			561			-
Bank owned life insurance			1,200			1,173			1,157			1,134			1,109
Other income			471			1,144			115			663			967
Total noninterest income			3,084			7,402			3,309			5,020			6,857
Noninterest Expense
Salaries and employee benefits			22,113			23,359			20,346			19,690			22,562
Occupancy and equipment			3,779			3,698			3,371			3,534			3,793
Professional services			2,792			2,523			2,494			2,291			2,261
FDIC deposit insurance			1,652			1,162			912			943			977
Data processing			1,727			1,646			1,422			1,473			1,435
Depreciation and amortization			1,457			1,491			1,482			1,482			1,510
Other real estate owned/foreclosure expense			145			105			185			150			165
Other operating expenses			6,227			6,751			6,176			5,547			6,453
Total noninterest expense			39,892			40,735			36,388			35,110			39,156
Income Before Provision for Income Taxes			4,997			11,754			10,752			11,872			5,455
Provision for income taxes			1,313			3,655			2,917			3,186			1,411
Net Income		$	3,684		$	8,099		$	7,835		$	8,686		$	4,044
Basic earnings per common share		$	0.12		$	0.27		$	0.26		$	0.29		$	0.13
Diluted earnings per common share		$	0.12		$	0.27		$	0.26		$	0.29		$	0.13
Dividends per common share		$	0.22		$	0.22		$	0.22		$	0.22		$	0.22
Basic average shares			29,742			29,650			29,703			30,090			30,265
Diluted average shares			29,742			29,650			29,703			30,090			30,265

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

		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
ASSETS
Cash and due from banks		$	210,723		$	172,157		$	200,926		$	160,053		$	176,747
Securities held-to-maturity:
Mortgage-backed securities			7,850			7,855			7,860			7,865			7,870
Other securities, net			64,612			65,068			65,271			65,469			65,653
Securities available for sale:
Mortgage-backed securities			509,527			354,344			337,879			365,911			380,110
Other securities			667,156			520,409			505,784			503,645			431,818
Loans			6,821,943			6,906,950			6,896,074			6,832,425			6,904,176
Allowance for credit losses			(40,752	)		(40,161	)		(39,228	)		(38,593	)		(38,729	)
Net loans			6,781,191			6,866,789			6,856,846			6,793,832			6,865,447
Interest and dividends receivable			61,449			59,018			55,660			52,911			46,836
Bank premises and equipment, net			20,102			21,273			21,302			22,182			21,567
Federal Home Loan Bank of New York stock			24,845			31,066			43,821			36,168			38,779
Bank owned life insurance			214,718			213,518			214,321			213,164			214,240
Goodwill			17,636			17,636			17,636			17,636			17,636
Core deposit intangibles			1,428			1,537			1,651			1,769			1,891
Right of use asset			37,631			39,557			41,404			41,526			42,268
Other assets			188,457			167,009			209,014			192,721			168,872
Total assets		$	8,807,325		$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734
LIABILITIES
Total deposits		$	7,253,207		$	6,815,261		$	6,681,509		$	6,723,690		$	6,734,090
Borrowed funds			671,474			841,281			1,001,010			857,400			887,509
Operating lease liability			38,674			40,822			43,067			44,402			45,353
Other liabilities			174,143			170,035			187,268			179,113			140,437
Total liabilities			8,137,498			7,867,399			7,912,854			7,804,605			7,807,389
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			260,413			264,534			264,486			263,744			262,876
Treasury stock			(101,641	)		(106,070	)		(105,433	)		(104,574	)		(97,760	)
Retained earnings			546,530			549,683			548,058			546,755			544,672
Accumulated other comprehensive loss, net of taxes			(35,816	)		(38,651	)		(40,931	)		(36,019	)		(37,784	)
Total stockholders' equity			669,827			669,837			666,521			670,247			672,345
Total liabilities and stockholders' equity		$	8,807,325		$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734
(In thousands)
Issued shares			34,088			34,088			34,088			34,088			34,088
Outstanding shares			29,069			28,866			28,905			28,961			29,488
Treasury shares			5,019			5,222			5,183			5,127			4,600

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2024			2023			2023			2023			2023
Interest-earning Assets:
Mortgage loans, net		$	5,353,606		$	5,356,112		$	5,314,215		$	5,308,567		$	5,333,274
Commercial Business loans, net			1,450,511			1,511,815			1,498,804			1,521,081			1,537,918
Total loans, net			6,804,117			6,867,927			6,813,019			6,829,648			6,871,192
Taxable securities:
Mortgage-backed securities			462,934			426,612			436,181			448,620			457,911
Other securities, net			590,204			527,316			528,091			471,600			411,723
Total taxable securities			1,053,138			953,928			964,272			920,220			869,634
Tax-exempt securities:
Other securities			65,939			66,242			66,438			66,632			66,828
Total tax-exempt securities			65,939			66,242			66,438			66,632			66,828
Interest-earning deposits and federal funds sold			311,966			188,894			179,508			175,256			194,722
Total interest-earning assets			8,235,160			8,076,991			8,023,237			7,991,756			8,002,376
Other assets			472,345			492,011			482,109			470,686			465,941
Total assets		$	8,707,505		$	8,569,002		$	8,505,346		$	8,462,442		$	8,468,317
Interest-bearing Liabilities:
Deposits:
Savings accounts		$	106,212		$	110,316		$	115,437		$	124,041		$	134,945
NOW accounts			1,935,250			1,848,285			1,907,781			2,026,950			1,970,555
Money market accounts			1,725,714			1,625,453			1,584,308			1,754,574			2,058,523
Certificate of deposit accounts			2,406,283			2,340,115			2,290,669			2,046,960			1,679,517
Total due to depositors			6,173,459			5,924,169			5,898,195			5,952,525			5,843,540
Mortgagors' escrow accounts			73,822			86,592			69,525			97,410			70,483
Total interest-bearing deposits			6,247,281			6,010,761			5,967,720			6,049,935			5,914,023
Borrowings			767,646			803,148			804,140			706,924			789,535
Total interest-bearing liabilities			7,014,927			6,813,909			6,771,860			6,756,859			6,703,558
Noninterest-bearing demand deposits			834,217			873,276			851,677			849,682			896,462
Other liabilities			189,176			211,998			206,768			183,066			185,239
Total liabilities			8,038,320			7,899,183			7,830,305			7,789,607			7,785,259
Equity			669,185			669,819			675,041			672,835			683,058
Total liabilities and equity		$	8,707,505		$	8,569,002		$	8,505,346		$	8,462,442		$	8,468,317
Net interest-earning assets		$	1,220,233		$	1,263,082		$	1,251,377		$	1,234,897		$	1,298,818

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

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Interest Income:
Mortgage loans, net		$	71,572		$	72,505		$	68,931		$	63,688		$	62,054
Commercial Business loans, net			21,387			23,111			22,535			21,689			20,835
Total loans, net			92,959			95,616			91,466			85,377			82,889
Taxable securities:
Mortgage-backed securities			3,696			3,217			3,031			2,976			2,281
Other securities			8,504			7,239			7,003			5,847			4,611
Total taxable securities			12,200			10,456			10,034			8,823			6,892
Tax-exempt securities:
Other securities			474			482			484			480			477
Total tax-exempt securities			474			482			484			480			477
Interest-earning deposits and federal funds sold			3,966			2,310			2,154			1,982			1,959
Total interest-earning assets			109,599			108,864			104,138			96,662			92,217
Interest Expense:
Deposits:
Savings accounts		$	122		$	124		$	130		$	140		$	126
NOW accounts			18,491			17,411			16,843			16,152			13,785
Money market accounts			17,272			15,785			14,386			14,625			14,102
Certificate of deposit accounts			21,918			19,917			18,639			15,281			11,007
Total due to depositors			57,803			53,237			49,998			46,198			39,020
Mortgagors' escrow accounts			62			47			68			51			36
Total interest-bearing deposits			57,865			53,284			50,066			46,249			39,056
Borrowings			9,237			9,394			9,543			6,934			7,799
Total interest-bearing liabilities			67,102			62,678			59,609			53,183			46,855
Net interest income- tax equivalent		$	42,497		$	46,186		$	44,529		$	43,479		$	45,362
Included in net interest income above:
Prepayment penalty income, net reversals and recovered interest from nonaccrual loans, and customer swap terminations fees		$	928		$	3,416		$	857		$	315		$	680
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income			(187	)		(872	)		1,348			(205	)		100
Purchase accounting adjustments			271			461			347			340			306
Interest-earning Assets Yields:
Mortgage loans, net			5.35	%		5.41	%		5.19	%		4.80	%		4.65	%
Commercial Business loans, net			5.90			6.11			6.01			5.70			5.42
Total loans, net			5.46			5.57			5.37			5.00			4.83
Taxable securities:
Mortgage-backed securities			3.19			3.02			2.78			2.65			1.99
Other securities			5.76			5.49			5.30			4.96			4.48
Total taxable securities			4.63			4.38			4.16			3.84			3.17
Tax-exempt securities: (1)
Other securities			2.88			2.91			2.91			2.88			2.86
Total tax-exempt securities			2.88			2.91			2.91			2.88			2.86
Interest-earning deposits and federal funds sold			5.09			4.89			4.80			4.52			4.02
Total interest-earning assets (1)			5.32	%		5.39	%		5.19	%		4.84	%		4.61	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts			0.46	%		0.45	%		0.45	%		0.45	%		0.37	%
NOW accounts			3.82			3.77			3.53			3.19			2.80
Money market accounts			4.00			3.88			3.63			3.33			2.74
Certificate of deposit accounts			3.64			3.40			3.25			2.99			2.62
Total due to depositors			3.75			3.59			3.39			3.10			2.67
Mortgagors' escrow accounts			0.34			0.22			0.39			0.21			0.20
Total interest-bearing deposits			3.70			3.55			3.36			3.06			2.64
Borrowings			4.81			4.68			4.75			3.92			3.95
Total interest-bearing liabilities			3.83	%		3.68	%		3.52	%		3.15	%		2.80	%
Net interest rate spread (tax equivalent) (1)			1.49	%		1.71	%		1.67	%		1.69	%		1.81	%
Net interest margin (tax equivalent) (1)			2.06	%		2.29	%		2.22	%		2.18	%		2.27	%
Ratio of interest-earning assets to interest-bearing liabilities			1.17	X		1.19	X		1.18	X		1.18	X		1.19	X

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

Deposit Composition

																	1Q24 vs.				1Q24 vs.
		March 31,			December 31,			September 30,			June 30,			March 31,			4Q23				1Q23
(Dollars in thousands)		2024			2023			2023			2023			2023			% Change				% Change
Noninterest bearing		$	815,937		$	847,416		$	874,420		$	827,820		$	872,254			(3.7	)%			(6.5	)%
Interest bearing:
Certificate of deposit accounts			2,529,095			2,311,290			2,321,369			2,232,696			1,880,260			9.4				34.5
Savings accounts			105,147			108,605			112,730			118,886			128,245			(3.2	)			(18.0	)
Money market accounts			1,717,298			1,726,404			1,551,176			1,594,637			1,855,781			(0.5	)			(7.5	)
NOW accounts			2,003,649			1,771,164			1,749,802			1,891,834			1,918,977			13.1				4.4
Total interest-bearing deposits			6,355,189			5,917,463			5,735,077			5,838,053			5,783,263			7.4				9.9
Total due to depositors			7,171,126			6,764,879			6,609,497			6,665,873			6,655,517			6.0				7.7
Mortgagors' escrow deposits			82,081			50,382			72,012			57,817			78,573			62.9				4.5
Total deposits		$	7,253,207		$	6,815,261		$	6,681,509		$	6,723,690		$	6,734,090			6.4	%			7.7	%

Loan Composition

																	1Q24 vs.				1Q24 vs.
		March 31,			December 31,			September 30,			June 30,			March 31,			4Q23				1Q23
(Dollars in thousands)		2024			2023			2023			2023			2023			% Change				% Change
Multifamily residential		$	2,622,737		$	2,658,205		$	2,614,219		$	2,593,955		$	2,601,174			(1.3	)%			0.8	%
Commercial real estate			1,925,312			1,958,252			1,953,243			1,917,749			1,904,293			(1.7	)			1.1
One-to-four family - mixed use property			516,198			530,243			537,744			542,368			549,207			(2.6	)			(6.0	)
One-to-four family - residential			267,156			220,213			222,874			230,055			238,417			21.3				12.1
Construction			60,568			58,673			59,903			57,325			60,486			3.2				0.1
Mortgage loans			5,391,971			5,425,586			5,387,983			5,341,452			5,353,577			(0.6	)			0.7
Small Business Administration			16,244			20,205			21,896			22,404			22,860			(19.6	)			(28.9	)
Commercial business and other			1,411,725			1,452,518			1,487,775			1,466,358			1,518,756			(2.8	)			(7.0	)
Commercial Business loans			1,427,969			1,472,723			1,509,671			1,488,762			1,541,616			(3.0	)			(7.4	)
Gross loans			6,819,940			6,898,309			6,897,654			6,830,214			6,895,193			(1.1	)			(1.1	)
Net unamortized (premiums) and unearned loan (cost) fees (1)			2,003			8,641			(1,580	)		2,211			8,983			(76.8	)			(77.7	)
Allowance for credit losses			(40,752	)		(40,161	)		(39,228	)		(38,593	)		(38,729	)		1.5				5.2
Net loans		$	6,781,191		$	6,866,789		$	6,856,846		$	6,793,832		$	6,865,447			(1.2	)%			(1.2	)%

⁽¹⁾ Includes $3.6 million, $3.9 million, $4.4 million, $4.8 million, and $5.1 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively.

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

Loan Closings

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2024			2023			2023			2023			2023
Multifamily residential		$	11,805		$	82,995		$	75,655		$	31,901		$	42,164
Commercial real estate			10,040			60,092			70,197			38,523			15,570
One-to-four family - mixed use property			750			3,319			6,028			5,812			4,938
One-to-four family - residential			52,539			1,454			1,070			63			4,296
Construction			1,895			8,007			6,971			8,811			10,592
Mortgage loans			77,029			155,867			159,921			85,110			77,560
Small Business Administration			-			1,162			-			820			318
Commercial business and other			52,955			87,255			81,549			72,850			95,668
Commercial Business loans			52,955			88,417			81,549			73,670			95,986
Total Closings		$	129,984		$	244,284		$	241,470		$	158,780		$	173,546

Weighted Average Rate on Loan Closings

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
Loan type		2024			2023			2023			2023			2023
Mortgage loans			6.46	%		7.55	%		7.22	%		6.62	%		6.30	%
Commercial Business loans			8.29			7.93			8.00			7.76			7.58
Total loans			7.20	%		7.69	%		7.48	%		7.14	%		7.01	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)

Allowance for Credit Losses

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Allowance for credit losses - loans
Beginning balances		$	40,161		$	39,228		$	38,593		$	38,729		$	40,442
Net loan charge-off (recoveries):
Multifamily residential			-			(1	)		-			-			(1	)
Commercial real estate			-			-			-			8			-
One-to-four family - mixed-use property			-			(1	)		-			-			-
One-to-four family - residential			13			9			(6	)		4			(36	)
Small Business Administration			(5	)		(29	)		(48	)		(158	)		(6	)
Commercial business and other			(4	)		82			12			1,706			9,277
Total net loan charge-offs (recoveries)			4			60			(42	)		1,560			9,234
Provision (benefit) for loan losses			595			993			593			1,424			7,521
Ending balance		$	40,752		$	40,161		$	39,228		$	38,593		$	38,729
Gross charge-offs		$	58		$	107		$	21		$	1,731		$	9,298
Gross recoveries			54			47			63			171			64
Allowance for credit losses - loans to gross loans			0.60	%		0.58	%		0.57	%		0.57	%		0.56	%
Net loan charge-offs (recoveries) to average loans			-			-			-			0.09			0.54

Nonperforming Assets

		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Loans 90 Days or More Past Due and Still Accruing:
Multifamily residential		$	-		$	1,463		$	-		$	-		$	-
Total Loans 90 Days or more past due and still accruing			-			1,463			-			-			-
Nonaccrual Loans:
Multifamily residential			4,669			3,206			3,206			3,206			3,628
One-to-four family - mixed-use property			911			981			1,075			790			790
One-to-four family - residential			3,768			5,181			4,161			5,218			4,961
Small Business Administration			2,552			2,552			1,255			1,119			937
Commercial business and other			12,929			11,789			7,708			8,304			10,860
Total Nonaccrual loans			24,829			23,709			17,405			18,637			21,176
Total Nonperforming Loans (NPLs)			24,829			25,172			17,405			18,637			21,176
Other Nonperforming Assets:
Real estate acquired through foreclosure			665			-			-			-			-
Total Other nonperforming assets			665			-			-			-			-
Total Nonaccrual HTM Securities			20,760			20,981			20,981			20,981			20,981
Total Nonperforming Assets		$	46,254		$	46,153		$	38,386		$	39,618		$	42,157
Nonperforming Assets to Total Assets			0.53	%		0.54	%		0.45	%		0.47	%		0.50	%
Allowance for Credit Losses to NPLs			164.1	%		159.5	%		225.4	%		207.1	%		182.9	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

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

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

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

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

		For the three months ended
(Dollars in thousands,		March 31,			December 31,			September 30,			June 30,			March 31,
except per share data)		2024			2023			2023			2023			2023
GAAP income before income taxes		$	4,997		$	11,754		$	10,752		$	11,872		$	5,455
Net (gain) loss from fair value adjustments (Noninterest income (loss))			834			(906	)		1,246			(294	)		(2,619	)
Life insurance proceeds (Noninterest income (loss))			-			(697	)		(23	)		(561	)		-
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)			187			872			(1,348	)		205			(100	)
Net amortization of purchase accounting adjustments and intangibles (Various)			(169	)		(355	)		(237	)		(227	)		(188	)
Miscellaneous expense (Professional services)			-			526			-			-			-
Core income before taxes			5,849			11,194			10,390			10,995			2,548
Provision for core income taxes			1,537			3,648			2,819			3,083			659
Core net income		$	4,312		$	7,546		$	7,571		$	7,912		$	1,889
GAAP diluted earnings per common share		$	0.12		$	0.27		$	0.26		$	0.29		$	0.13
Net (gain) loss from fair value adjustments, net of tax			0.02			(0.02	)		0.03			(0.01	)		(0.06	)
Life insurance proceeds			-			(0.02	)		-			(0.02	)		-
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax			-			0.02			(0.03	)		-			-
Net amortization of purchase accounting adjustments, net of tax			-			(0.01	)		(0.01	)		(0.01	)		(0.01	)
Miscellaneous expense, net of tax			-			0.01			-			-			-
Core diluted earnings per common share(1)		$	0.14		$	0.25		$	0.25		$	0.26		$	0.06
Core net income, as calculated above		$	4,312		$	7,546		$	7,571		$	7,912		$	1,889
Average assets			8,707,505			8,569,002			8,505,346			8,462,442			8,468,317
Average equity			669,185			669,819			675,041			672,835			683,058
Core return on average assets(2)			0.20	%		0.35	%		0.36	%		0.37	%		0.09	%
Core return on average equity(2)			2.58	%		4.51	%		4.49	%		4.70	%		1.11	%

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

⁽²⁾ Ratios are calculated on an annualized basis.

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

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
GAAP Net interest income		$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Net (gain) loss from fair value adjustments on qualifying hedges			187			872			(1,348	)		205			(100	)
Net amortization of purchase accounting adjustments			(271	)		(461	)		(347	)		(340	)		(306	)
Core Net interest income		$	42,313		$	46,496		$	42,732		$	43,243		$	44,856
GAAP Noninterest income		$	3,084		$	7,402		$	3,309		$	5,020		$	6,857
Net (gain) loss from fair value adjustments			834			(906	)		1,246			(294	)		(2,619	)
Life insurance proceeds			-			(697	)		(23	)		(561	)		-
Core Noninterest income		$	3,918		$	5,799		$	4,532		$	4,165		$	4,238
GAAP Noninterest expense		$	39,892		$	40,735		$	36,388		$	35,110		$	39,156
Net amortization of purchase accounting adjustments			(102	)		(106	)		(110	)		(113	)		(118	)
Miscellaneous expense			-			(526	)		-			-			-
Core Noninterest expense		$	39,790		$	40,103		$	36,278		$	34,997		$	39,038
Net interest income		$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Noninterest income			3,084			7,402			3,309			5,020			6,857
Noninterest expense			(39,892	)		(40,735	)		(36,388	)		(35,110	)		(39,156	)
Pre-provision pre-tax net revenue		$	5,589		$	12,752		$	11,348		$	13,288		$	12,963
Core:
Net interest income		$	42,313		$	46,496		$	42,732		$	43,243		$	44,856
Noninterest income			3,918			5,799			4,532			4,165			4,238
Noninterest expense			(39,790	)		(40,103	)		(36,278	)		(34,997	)		(39,038	)
Pre-provision pre-tax net revenue		$	6,441		$	12,192		$	10,986		$	12,411		$	10,056
Efficiency Ratio			86.1	%		76.7	%		76.8	%		73.8	%		79.5	%

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

		For the three months ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
GAAP net interest income		$	42,397		$	46,085		$	44,427		$	43,378		$	45,262
Net (gain) loss from fair value adjustments on qualifying hedges			187			872			(1,348	)		205			(100	)
Net amortization of purchase accounting adjustments			(271	)		(461	)		(347	)		(340	)		(306	)
Tax equivalent adjustment			100			101			102			101			100
Core net interest income FTE		$	42,413		$	46,597		$	42,834		$	43,344		$	44,956
Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from nonaccrual loans			(928	)		(3,416	)		(857	)		(315	)		(680	)
Net interest income FTE excluding episodic items		$	41,485		$	43,181		$	41,977		$	43,029		$	44,276
Total average interest-earning assets (1)		$	8,238,395		$	8,080,550		$	8,027,201		$	7,996,067		$	8,006,970
Core net interest margin FTE			2.06	%		2.31	%		2.13	%		2.17	%		2.25	%
Net interest margin FTE excluding episodic items			2.01	%		2.14	%		2.09	%		2.15	%		2.21	%
GAAP interest income on total loans, net		$	92,959		$	95,616		$	91,466		$	85,377		$	82,889
Net (gain) loss from fair value adjustments on qualifying hedges - loans			123			978			(1,379	)		157			(101	)
Net amortization of purchase accounting adjustments			(295	)		(484	)		(358	)		(345	)		(316	)
Core interest income on total loans, net		$	92,787		$	96,110		$	89,729		$	85,189		$	82,472
Average total loans, net (1)		$	6,807,944		$	6,872,115		$	6,817,642		$	6,834,644		$	6,876,495
Core yield on total loans			5.45	%		5.59	%		5.26	%		4.99	%		4.80	%

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

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

		March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands)		2024			2023			2023			2023			2023
Total Equity		$	669,827		$	669,837		$	666,521		$	670,247		$	672,345
Less:
Goodwill			(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles			(1,428	)		(1,537	)		(1,651	)		(1,769	)		(1,891	)
Tangible Stockholders' Common Equity		$	650,763		$	650,664		$	647,234		$	650,842		$	652,818
Total Assets		$	8,807,325		$	8,537,236		$	8,579,375		$	8,474,852		$	8,479,734
Less:
Goodwill			(17,636	)		(17,636	)		(17,636	)		(17,636	)		(17,636	)
Core deposit intangibles			(1,428	)		(1,537	)		(1,651	)		(1,769	)		(1,891	)
Tangible Assets		$	8,788,261		$	8,518,063		$	8,560,088		$	8,455,447		$	8,460,207
Tangible Stockholders' Common Equity to Tangible Assets			7.40	%		7.64	%		7.56	%		7.70	%		7.72	%

SOURCE: Flushing Financial Corporation

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FAQ

What were Flushing Financial 's 1Q24 GAAP and Core EPS?

Flushing Financial reported GAAP EPS of $0.12 and Core EPS of $0.14 for 1Q24.

What drove the excellent quality in Flushing Financial 's financial results?

The excellent quality was driven by the company's low-risk credit profile.

How long has Flushing Financial been in operation?

Flushing Financial has been in operation for over 95 years.

What is Flushing Financial 's stock symbol?

Flushing Financial 's stock symbol is FFIC.