Flushing Financial 4Q24 Earnings Press Release;

Exhibit 99.1

0	● ●
	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 4Q24 and 2024 GAAP Loss Per Share of $(1.61) and $(1.05), and Core EPS of $0.14 and $0.73, Respectively; Actions Taken to Improve Profitability and to Strengthen the Balance Sheet
“Our Company successfully executed meaningful actions in 2024 to position it for enhanced earnings in 2025. First, we raised $70 million of capital to reposition the balance sheet, completed the restructuring of the investment portfolio, transferred loans to held for sale, and repositioned borrowings while reducing the cost. The overall result of this balance sheet restructuring is expected to be a significant improvement performance with 10-15 bps of NIM expansion expected in 1Q25. This restructuring will further propel our baseline NIM expansion, which was 29 and 18 bps, respectively, for GAAP and Core, in 4Q24. Second, our actions to move the balance sheet to a more neutral position have helped position the Company for the current environment. The recent steepening of the yield curve should further aid NIM improvement over time. Lastly, after making progress on our four areas of focus in 2024, we are shifting the priorities in 2025 to 1) Preserving Strong Liquidity and Capital, 2) Maintaining Credit Discipline, and 3) Improving Profitability. While progress occurred in 2024, by shifting our priorities in 2025, we expect further improvement. - John R. Buran, President and CEO
UNIONDALE, N.Y., January 28, 2025 – Restructuring Largely Complete. The Company reported fourth quarter and full year 2024 GAAP loss per share of $(1.61) and $(1.05), respectively. Core EPS for the fourth quarter and full year 2024 totaled $0.14 and $0.73, respectively. During the fourth quarter, the Company took several actions to improve profitability and strengthen the balance sheet, including raising $70 million of common capital, selling approximately $445 million of securities yielding 1.98%, purchasing $384 million of securities yielding 5.67%, terminating $200 million of a related investment securities swap for a $3 million pre-tax gain, prepaying $251 million of FHLB advances at a weighted average rate of 4.82%, replacing this funding at a rate of 4.54%, and moving $74 million of loans with a weighted average coupon of 3.91% to held for sale incurring an 100% interest rate mark of $3.8 million pre-tax. The net result of these transactions and other adjustments totaled $76.0 million (pre-tax) or $(1.74) per share, net of tax in 4Q24 and $(1.77) per share in 2024. Asset Quality Stable, and Capital Improves. Asset quality metrics were stable as NPAs were down 6.5% QoQ, but criticized and classified loans totaled 107 bps of gross loans. Net charge-offs to average loans were 28 bps in 4Q24 primarily relating to loans that were already fully reserved. TCE/TA¹ increased to 7.82% at December 31, 2024, up 82 bps QoQ.

Key Financial Metrics²


	4Q24	3Q24	2Q24	1Q24	4Q23	2024	2023
GAAP:
(Loss) Earnings per Share	($1.61)	$0.30	$0.18	$0.12	$0.27	($1.05)	$0.96
ROAA (%)	(2.17)	0.39	0.24	0.17	0.38	(0.35)	0.34
ROAE (%)	(29.24)	5.30	3.19	2.20	4.84	(4.67)	4.25
NIM FTE³ (%)	2.39	2.10	2.05	2.06	2.29	2.15	2.24
Core:
EPS	$0.14	$0.26	$0.18	$0.14	$0.25	$0.73	$0.83
ROAA (%)	0.19	0.34	0.25	0.20	0.35	0.24	0.29
ROAE (%)	2.54	4.59	3.27	2.58	4.51	3.25	3.69
Core NIM FTE (%)	2.25	2.07	2.03	2.06	2.31	2.10	2.21
Credit Quality:
NPAs/Loans & OREO (%)	0.76	0.81	0.82	0.68	0.67	0.76	0.67
ACLs/Loans (%)	0.60	0.59	0.61	0.60	0.58	0.60	0.58
ACLs/NPLs (%)	120.51	117.75	120.58	164.13	159.55	120.51	159.55
NCOs/Avg Loans (%)	0.28	0.18	(0.01)	-	-	0.11	0.16
Balance Sheet:
Avg Loans ($B)	$6.8	$6.7	$6.7	$6.8	$6.9	$6.8	$6.8
Avg Dep ($B)	$7.4	$7.5	$7.2	$7.1	$6.9	$7.3	$6.9
Book Value/Share	$21.53	$22.94	$22.89	$23.04	$23.21	$21.53	$23.21
Tangible BV/Share	$20.97	$22.29	$22.24	$22.39	$22.54	$20.97	$22.54
TCE/TA (%)	7.82	7.00	7.12	7.40	7.64	7.82	7.64

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

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

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

Income Statement Highlights


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

Net Interest Income	$51,235	$45,603	$42,776	$42,397	$46,085	11.2	%	12.4	%
Provision for Credit Losses	6,440	1,727	809	592	998	545.3		272.9
Noninterest Income (Loss)	(71,022)	6,277	4,216	3,084	7,402	(1,059.5)		(1,231.5)
Noninterest Expense	45,630	38,696	39,047	39,892	40,735	12.0		17.9
(Loss) Income Before Income Taxes	(71,857)	11,457	7,136	4,997	11,754	(711.3)		(727.2)
Provision (Benefit) for Income Taxes	(22,612)	2,551	1,814	1,313	3,655	(718.7)		(986.4)
Net (Loss) Income	($49,245)	$8,906	$5,322	$3,684	$8,099	(708.0)		(652.9)
Diluted (Loss) Earnings per Share	($1.61)	$0.30	$0.18	$0.12	$0.27	(696.3)		(636.7)
Avg. Diluted Shares (000s)	30,519	29,742	29,789	29,742	29,650	2.9		2.6

Core Net Income¹	$4,209	$7,723	$5,456	$4,312	$7,546	(44.2)		(45.5)
Core EPS¹	$0.14	$0.26	$0.18	$0.14	$0.25	(44.0)		(46.2)

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income increased YoY and QoQ.

●

Net Interest Margin FTE of 2.39% increased 10 bps YoY and 29 bps QoQ; The cost of funds declined 34 bps QoQ partially offset by a 3 bps decrease in the yield on interest earning assets

●

Prepayment penalty income, swap termination fees and income, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $3.8 million (17 bps to the NIM) in 4Q24 compared to $2.4 million (11 bps to NIM) in 3Q24, $0.7 million (3 bps to NIM) in 2Q24, $1.0 million (5 bps to NIM) in 1Q24, and $3.0 million (15 bps to NIM) in 4Q23

●

Excluding the items in the previous bullet, the net interest margin was 2.22% in 4Q24 compared to 1.99% in 3Q24, 2.02% in 2Q24, 2.01% in 1Q24, and 2.14% in 4Q23

The provision for credit losses increased YoY and QoQ.

●

Net charge-offs (recoveries) were $4.7 million (28 bps of average loans) in 4Q24 compared to $3.0 million (18 bps of average loans) in 3Q24, $(92,000) ((1) bp of average loans) in 2Q24, $4,000 (less than 1 bp of average loans) in 1Q24, and $60,000 (less than 1 bp of average loans) in 4Q23; Net charges-offs in 4Q24 primarily relate to loans that were fully reserved

Noninterest income (loss) decreased YoY and QoQ.

●

Back-to-back swap loan closings of $58.5 million in 4Q24 (compared to $121.6 million in 4Q23 and $38.5 million in 3Q24) generated $0.9 million of noninterest income (compared to $1.5 million in 4Q23 and $0.6 million in 3Q24)

●

The result of the balance sheet restructuring was a pre-tax loss of $76.4 million from the sale of the investment securities and the transfer of loans to held for sale.

●

Net gains (losses) from fair value adjustments were $(1.1) million ($(0.03) per share, net of tax) in 4Q24, $1.0 million ($0.03 per share, net of tax) in 3Q24, $0.1 million (less than $0.01 per share, net of tax) in 2Q24, $(0.8) million ($(0.02) per share, net of tax) in 1Q24, and $0.9 million ($0.02 per share, net of tax) in 4Q23

●

Gain on life insurance proceeds were $0.3 million (about $0.01 per share) in 4Q24, $1,000 (less than $0.01 per share) in 3Q24, and $0.7 million ($0.02 per share) in 4Q23

●

Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $6.0 million in 4Q24, up 3.1% YoY and 12.8% QoQ

Noninterest expense increased YoY and QoQ.

●

The balance sheet restructuring affected FHLB advances by incurring a $2.6 million pre-payment penalty

●

Excluding the effects of the prior bullet and other immaterial adjustments, core noninterest expenses were $42.8 million in 4Q24, up 6.6% YoY and 10.8% QoQ; YoY increases primarily relate to business investments in staff and branches and deposit insurance premiums

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

Provision (benefit) for income taxes was $(22.6) million in 4Q24 compared to $3.7 million in 4Q23 and $2.6 million in 3Q24.

●

The effective tax rate was 31.5% in 4Q24, 22.3% in 3Q24, 25.4% in 2Q24, 26.3% in 1Q24, and 31.1% in 4Q23

●

The effective tax rate in 4Q24 was primarily related to the increased benefit of permanent differences relative to pre-tax income (loss); The effective tax rate in 3Q24 includes approximately $0.5 million of discrete tax benefits

Balance Sheet, Credit Quality, and Capital Highlights


						YoY		QoQ
	4Q24	3Q24	2Q24	1Q24	4Q23	Change		Change
Averages ($MM)
Loans	$6,780	$6,737	$6,748	$6,804	$6,868	(1.3)	%	0.6	%
Total Deposits	7,450	7,464	7,196	7,081	6,884	8.2		(0.2)

Credit Quality ($000s)
Nonperforming Loans	$33,318	$34,261	$34,540	$24,829	$25,172	32.4	%	(2.8)	%
Nonperforming Assets	51,318	54,888	55,832	46,254	46,153	11.2		(6.5)
Criticized and Classified Loans	72,207	68,338	76,485	59,021	76,719	(5.9)		5.7
Criticized and Classified Assets	90,207	88,965	97,777	80,446	97,700	(7.7)		1.4
Allowance for Credit Losses/Loans (%)	0.60	0.59	0.61	0.60	0.58	2	bps	1	bp

Capital
Book Value/Share	$21.53	$22.94	$22.89	$23.04	$23.21	(7.2)	%	(6.1)	%
Tangible Book Value/Share	20.97	22.29	22.24	22.39	22.54	(7.0)		(5.9)
Tang. Common Equity/Tang. Assets (%)	7.82	7.00	7.12	7.40	7.64	18	bps	82	bps
Leverage Ratio (%)	8.04	7.91	8.18	8.32	8.47	(43)		13

Average loans decreased YoY but increased QoQ.

●

Period end net loans totaled $6.7 billion, down 2.3% YoY and 1.1% QoQ; Approximately $74 million of loans were moved to held for sale at the end of the quarter and incurred a $3.8 million interest rate mark; The sales are expected to close in 1Q25

●

Total loan closings were $225.2 million in 4Q24, $217.1 million in 3Q24, $126.0 million in 2Q24, $130.0 million in 1Q24, and $244.3 million in 4Q23; the loan pipeline was $198.9 million at December 31, 2024, up 21.9% YoY, but down 32.1% QoQ

●

The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of <35%

Average total deposits increased YoY but declined QoQ.

●

Average noninterest bearing deposits decreased 0.4% YoY, but increased 2.9% QoQ and comprised 11.7% of average total deposits in 4Q24 compared to 12.7% a year ago

●

Average CDs totaled $2.7 billion, up 14.6% YoY, but down 7.0% QoQ; approximately $792.0 million of retail CDs are due to mature at an average rate of 4.59% in 1Q25

Credit Quality: Nonperforming loans increased YoY but decreased QoQ.

●

Nonperforming loans were 49 bps of loans in 4Q24 compared to 36 bps in 4Q23 and 50 bps in 3Q24; The Company allocated $2.6 million of reserves to its largest NPA during the quarter based on updated information

●

Criticized and classified loans were 107 bps of gross loans at 4Q24 compared to 100 bps at 3Q24, 113 bps at 2Q24, 87 bps at 1Q24, and 111 bps at 4Q23

●

Allowance for credit losses was 120.5% of nonperforming loans at 4Q24 compared to 159.5% at 4Q23 and 117.7% at 3Q24

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 7.2% and 7.0% YoY to $21.53 and $20.97, respectively.

●

The Company completed a $70 million common stock offering on December 16, 2024, in which it issued approximately 4.6 million shares; the offering enabled the Company to strengthen the balance sheet and improve future earnings

●

The Company paid a dividend of $0.22 per share in 4Q24; 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 7.82% at December 31, 2024, compared to 7.64% at December 31, 2023, and 7.00% at September 30, 2024

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

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)	2024			2024			2024			2024			2023			2024			2023
Performance Ratios ⁽¹⁾
Return on average assets		(2.17)	%		0.39	%		0.24	%		0.17	%		0.38	%		(0.35)	%		0.34	%
Return on average equity		(29.24)			5.30			3.19			2.20			4.84			(4.67)			4.25
Yield on average interest-earning assets ⁽²⁾		5.60			5.63			5.43			5.32			5.39			5.50			5.01
Cost of average interest-bearing liabilities		3.75			4.10			3.95			3.83			3.68			3.91			3.29
Cost of funds		3.35			3.69			3.54			3.42			3.26			3.50			2.91
Net interest rate spread during period⁽²⁾		1.85			1.53			1.48			1.49			1.71			1.59			1.72
Net interest margin ⁽²⁾		2.39			2.10			2.05			2.06			2.29			2.15			2.24
Noninterest expense to average assets		2.01			1.68			1.77			1.83			1.90			1.82			1.78
Efficiency ratio ⁽³⁾		79.01			77.20			82.57			86.07			76.69			81.04			76.72
Average interest-earning assets to average interest-bearing liabilities		1.17	X		1.16	X		1.17	X		1.17	X		1.19	X		1.17	X		1.19	X

Average Balances
Total loans, net	$	6,780,268		$	6,737,261		$	6,748,140		$	6,804,117		$	6,867,927		$	6,767,399		$	6,845,349
Total interest-earning assets		8,587,482			8,709,671			8,354,994			8,235,160			8,076,991			8,472,793			8,023,793
Total assets		9,071,879			9,203,884			8,830,665			8,707,505			8,569,002			8,954,491			8,501,564
Total deposits		7,449,504			7,463,783			7,195,940			7,081,498			6,884,037			7,298,549			6,853,494
Total interest-bearing liabilities		7,339,707			7,504,517			7,140,068			7,014,927			6,813,909			7,250,746			6,761,877
Stockholders' equity		673,588			672,762			667,557			669,185			669,819			670,786			675,151

Per Share Data
Book value per common share ⁽⁴⁾	$	21.53		$	22.94		$	22.89		$	23.04		$	23.21		$	21.53		$	23.21
Tangible book value per common share ⁽⁵⁾	$	20.97		$	22.29		$	22.24		$	22.39		$	22.54		$	20.97		$	22.54

Stockholders' Equity
Stockholders' equity	$	724,539		$	666,891		$	665,322		$	669,827		$	669,837		$	724,539		$	669,837
Tangible stockholders' equity		705,780			648,035			646,364			650,763			650,664			705,780			650,664

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	731,958		$	735,984		$	733,308		$	734,192		$	737,732		$	731,958		$	737,732
Common equity Tier 1 capital		685,004			689,902			686,630			687,458			691,754			685,004			691,754
Total risk-based capital		962,272			967,242			965,819			965,796			967,627			962,272			967,627
Risk Weighted Assets		6,762,048			6,790,253			6,718,568			6,664,496			6,750,301			6,762,048			6,750,301

Tier 1 leverage capital (well capitalized = 5%)		8.04	%		7.91	%		8.18	%		8.32	%		8.47	%		8.04	%		8.47	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.13			10.16			10.22			10.32			10.25			10.13			10.25
Tier 1 risk-based capital (well capitalized = 8.0%)		10.82			10.84			10.91			11.02			10.93			10.82			10.93
Total risk-based capital (well capitalized = 10.0%)		14.23			14.24			14.38			14.49			14.33			14.23			14.33

Capital Ratios
Average equity to average assets		7.43	%		7.31	%		7.56	%		7.69	%		7.82	%		7.49	%		7.94	%
Equity to total assets		8.02			7.19			7.31			7.61			7.85			8.02			7.85
Tangible common equity to tangible assets ⁽⁶⁾		7.82			7.00			7.12			7.40			7.64			7.82			7.64

Asset Quality
Nonaccrual loans	$	33,318		$	34,261		$	34,540		$	24,829		$	23,709		$	33,318		$	23,709
Nonperforming loans		33,318			34,261			34,540			24,829			25,172			33,318			25,172
Nonperforming assets		51,318			54,888			55,832			46,254			46,153			51,318			46,153
Net charge-offs (recoveries)		4,736			3,036			(92)			4			60			7,684			10,812

Asset Quality Ratios
Nonperforming loans to gross loans		0.49	%		0.50	%		0.51	%		0.36	%		0.36	%		0.49	%		0.36	%
Nonperforming assets to total assets		0.57			0.59			0.61			0.53			0.54			0.57			0.54
Allowance for credit losses to gross loans		0.60			0.59			0.61			0.60			0.58			0.60			0.58
Allowance for credit losses to nonperforming assets		78.24			73.50			74.60			88.10			87.02			78.24			87.02
Allowance for credit losses to nonperforming loans		120.51			117.75			120.58			164.13			159.55			120.51			159.55
Net charge-offs (recoveries) to average loans		0.28			0.18			(0.01)			—			—			0.11			0.16

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

(footnotes on next page)

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF (LOSS) 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)	2024		2024		2024		2024		2023		2024		2023
Interest and Dividend Income
Interest and fees on loans	$	94,111	$	95,780	$	92,728	$	92,959	$	95,616	$	375,578	$	355,348
Interest and dividends on securities:
Interest		24,111		24,215		18,209		12,541		10,803		79,076		37,598
Dividends		31		33		33		33		34		130		126
Other interest income		1,787		2,565		2,260		3,966		2,310		10,578		8,405
Total interest and dividend income		120,040		122,593		113,230		109,499		108,763		465,362		401,477

Interest Expense
Deposits		59,728		66,150		60,893		57,865		53,284		244,636		188,655
Other interest expense		9,077		10,840		9,561		9,237		9,394		38,715		33,670
Total interest expense		68,805		76,990		70,454		67,102		62,678		283,351		222,325

Net Interest Income		51,235		45,603		42,776		42,397		46,085		182,011		179,152
Provision for credit losses		6,440		1,727		809		592		998		9,568		10,518
Net Interest Income After Provision for Credit Losses		44,795		43,876		41,967		41,805		45,087		172,443		168,634

Noninterest (Loss) Income
Banking services fee income		2,180		1,790		1,583		1,394		2,824		6,947		8,651
Net loss on sale of securities		(72,315)		—		—		—		—		(72,315)		—
Net gain (loss) on sale of loans		(3,836)		137		26		110		—		(3,563)		108
Net gain (loss) from fair value adjustments		(1,136)		974		57		(834)		906		(939)		2,573
Federal Home Loan Bank of New York stock dividends		754		624		669		743		658		2,790		2,513
Life insurance proceeds		284		1		—		—		697		285		1,281
Bank owned life insurance		2,322		1,260		1,223		1,200		1,173		6,005		4,573
Other income		725		1,491		658		471		1,144		3,345		2,889
Total noninterest (loss) income		(71,022)		6,277		4,216		3,084		7,402		(57,445)		22,588

Noninterest Expense
Salaries and employee benefits		25,346		22,216		21,723		22,113		23,359		91,398		85,957
Occupancy and equipment		3,880		3,745		3,713		3,779		3,698		15,117		14,396
Professional services		2,516		2,752		2,786		2,792		2,523		10,846		9,569
FDIC deposit insurance		2,005		1,318		1,322		1,652		1,162		6,297		3,994
Data processing		1,697		1,681		1,785		1,727		1,646		6,890		5,976
Depreciation and amortization		1,412		1,436		1,425		1,457		1,491		5,730		5,965
Other real estate owned/foreclosure expense		276		135		125		145		105		681		605
Gain on sale of other real estate owned		—		(174)		—		—		—		(174)		—
Prepayment penalty on borrowings		2,572		—		—		—		—		2,572		—
Other operating expenses		5,926		5,587		6,168		6,227		6,751		23,908		24,927
Total noninterest expense		45,630		38,696		39,047		39,892		40,735		163,265		151,389

(Loss) Income Before Provision for Income Taxes		(71,857)		11,457		7,136		4,997		11,754		(48,267)		39,833

Provision (Benefit) for income taxes		(22,612)		2,551		1,814		1,313		3,655		(16,934)		11,169

Net (Loss) Income	$	(49,245)	$	8,906	$	5,322	$	3,684	$	8,099	$	(31,333)	$	28,664

Basic (loss) earnings per common share	$	(1.61)	$	0.30	$	0.18	$	0.12	$	0.27	$	(1.05)	$	0.96
Diluted (loss) earnings per common share	$	(1.61)	$	0.30	$	0.18	$	0.12	$	0.27	$	(1.05)	$	0.96
Dividends per common share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	0.88	$	0.88

Basic average shares		30,519		29,742		29,789		29,742		29,650		29,949		29,925
Diluted average shares		30,519		29,742		29,789		29,742		29,650		29,949		29,925

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars in thousands)	2024		2024		2024		2024		2023
ASSETS
Cash and due from banks	$	152,574	$	267,643	$	156,913	$	210,723	$	172,157
Securities held-to-maturity:
Mortgage-backed securities		7,836		7,841		7,846		7,850		7,855
Other securities, net		43,649		63,859		64,166		64,612		65,068
Securities available for sale:
Mortgage-backed securities		911,636		926,731		869,494		509,527		354,344
Other securities		586,269		687,518		679,117		667,156		520,409
Loans held for sale		70,098		—		—		—		—
Loans		6,745,848		6,818,328		6,777,026		6,821,943		6,906,950
Allowance for credit losses		(40,152)		(40,342)		(41,648)		(40,752)		(40,161)
Net loans		6,705,696		6,777,986		6,735,378		6,781,191		6,866,789
Interest and dividends receivable		62,036		64,369		62,752		61,449		59,018
Bank premises and equipment, net		17,852		18,544		19,426		20,102		21,273
Federal Home Loan Bank of New York stock		38,096		32,745		46,331		24,845		31,066
Bank owned life insurance		218,174		217,200		215,940		214,718		213,518
Goodwill		17,636		17,636		17,636		17,636		17,636
Core deposit intangibles		1,123		1,220		1,322		1,428		1,537
Right of use asset		45,800		44,787		46,636		37,631		39,557
Other assets		160,497		152,807		174,283		188,457		167,009
Total assets	$	9,038,972	$	9,280,886	$	9,097,240	$	8,807,325	$	8,537,236

LIABILITIES
Total deposits	$	7,178,933	$	7,572,395	$	6,906,863	$	7,253,207	$	6,815,261
Borrowed funds		916,054		846,123		1,316,565		671,474		841,281
Operating lease liability		46,443		45,437		47,485		38,674		40,822
Other liabilities		173,003		150,040		161,005		174,143		170,035
Total liabilities		8,314,433		8,613,995		8,431,918		8,137,498		7,867,399

STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized; none issued)		—		—		—		—		—
Common stock ($0.01 par value; 100,000,000 shares authorized)		387		341		341		341		341
Additional paid-in capital		326,671		261,274		260,585		260,413		264,534
Treasury stock		(101,655)		(101,633)		(101,633)		(101,641)		(106,070)
Retained earnings		492,003		547,708		545,345		546,530		549,683
Accumulated other comprehensive loss, net of taxes		7,133		(40,799)		(39,316)		(35,816)		(38,651)
Total stockholders' equity		724,539		666,891		665,322		669,827		669,837

Total liabilities and stockholders' equity	$	9,038,972	$	9,280,886	$	9,097,240	$	8,807,325	$	8,537,236

(In thousands)
Issued shares		38,678		34,088		34,088		34,088		34,088
Outstanding shares		33,659		29,069		29,069		29,069		28,866
Treasury shares		5,019		5,019		5,019		5,019		5,222

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

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)	2024		2024		2024		2024		2023		2024		2023
Interest-earning Assets:
Loans held for sale	$	762	$	—	$	—	$	—	$	—	$	192	$	—
Mortgage loans, net		5,358,490		5,337,170		5,338,614		5,353,606		5,356,112		5,346,975		5,328,067
Commercial Business loans, net		1,421,778		1,400,091		1,409,526		1,450,511		1,511,815		1,420,424		1,517,282
Total loans, net		6,780,268		6,737,261		6,748,140		6,804,117		6,867,927		6,767,399		6,845,349
Taxable securities:
Mortgage-backed securities		919,587		984,383		691,802		462,934		426,612		765,700		442,228
Other securities, net		652,755		714,161		663,975		590,204		527,316		655,428		485,118
Total taxable securities		1,572,342		1,698,544		1,355,777		1,053,138		953,928		1,421,128		927,346
Tax-exempt securities:
Other securities		64,531		65,070		65,451		65,939		66,242		65,245		66,533
Total tax-exempt securities		64,531		65,070		65,451		65,939		66,242		65,245		66,533
Interest-earning deposits and federal funds sold		169,579		208,796		185,626		311,966		188,894		218,829		184,565
Total interest-earning assets		8,587,482		8,709,671		8,354,994		8,235,160		8,076,991		8,472,793		8,023,793
Other assets		484,397		494,213		475,671		472,345		492,011		481,698		477,771
Total assets	$	9,071,879	$	9,203,884	$	8,830,665	$	8,707,505	$	8,569,002	$	8,954,491	$	8,501,564

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	99,669	$	102,196	$	103,335	$	106,212	$	110,316	$	102,843	$	121,102
NOW accounts		2,024,600		1,886,387		2,017,085		1,935,250		1,848,285		1,965,774		1,937,974
Money market accounts		1,686,614		1,673,499		1,714,085		1,725,714		1,625,453		1,699,869		1,754,059
Certificate of deposit accounts		2,681,742		2,884,280		2,443,047		2,406,283		2,340,115		2,604,817		2,091,677
Total due to depositors		6,492,625		6,546,362		6,277,552		6,173,459		5,924,169		6,373,303		5,904,812
Mortgagors' escrow accounts		87,120		71,965		95,532		73,822		86,592		82,095		81,015
Total interest-bearing deposits		6,579,745		6,618,327		6,373,084		6,247,281		6,010,761		6,455,398		5,985,827
Borrowings		759,962		886,190		766,984		767,646		803,148		795,348		776,050
Total interest-bearing liabilities		7,339,707		7,504,517		7,140,068		7,014,927		6,813,909		7,250,746		6,761,877
Noninterest-bearing demand deposits		869,759		845,456		822,856		834,217		873,276		843,151		867,667
Other liabilities		188,825		181,149		200,184		189,176		211,998		189,808		196,869
Total liabilities		8,398,291		8,531,122		8,163,108		8,038,320		7,899,183		8,283,705		7,826,413
Equity		673,588		672,762		667,557		669,185		669,819		670,786		675,151
Total liabilities and equity	$	9,071,879	$	9,203,884	$	8,830,665	$	8,707,505	$	8,569,002	$	8,954,491	$	8,501,564

Net interest-earning assets	$	1,247,775	$	1,205,154	$	1,214,926	$	1,220,233	$	1,263,082	$	1,222,047	$	1,261,916

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

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)	2024			2024			2024			2024			2023			2024			2023
Interest Income:
Loans held for sale	$	7		$	—		$	—		$	—		$	—		$	7		$	—
Mortgage loans, net		73,252			74,645			71,968			71,572			72,505			291,437			267,178
Commercial Business loans, net		20,852			21,135			20,760			21,387			23,111			84,134			88,170
Total loans, net		94,104			95,780			92,728			92,959			95,616			375,571			355,348
Taxable securities:
Mortgage-backed securities		13,884			12,443			7,462			3,696			3,217			37,485			11,505
Other securities		9,887			11,431			10,408			8,504			7,239			40,230			24,700
Total taxable securities		23,771			23,874			17,870			12,200			10,456			77,715			36,205
Tax-exempt securities:
Other securities		469			474			470			474			482			1,887			1,923
Total tax-exempt securities		469			474			470			474			482			1,887			1,923
Interest-earning deposits and federal funds sold		1,787			2,565			2,260			3,966			2,310			10,578			8,405
Total interest-earning assets		120,138			122,693			113,328			109,599			108,864			465,758			401,881
Interest Expense:
Deposits:
Savings accounts	$	113		$	122		$	115		$	122		$	124		$	472		$	520
NOW accounts		18,390			18,795			20,007			18,491			17,411			75,683			64,191
Money market accounts		15,909			17,485			17,326			17,272			15,785			67,992			58,898
Certificate of deposit accounts		25,258			29,676			23,383			21,918			19,917			100,235			64,844
Total due to depositors		59,670			66,078			60,831			57,803			53,237			244,382			188,453
Mortgagors' escrow accounts		58			72			62			62			47			254			202
Total interest-bearing deposits		59,728			66,150			60,893			57,865			53,284			244,636			188,655
Borrowings		9,077			10,840			9,561			9,237			9,394			38,715			33,670
Total interest-bearing liabilities		68,805			76,990			70,454			67,102			62,678			283,351			222,325
Net interest income- tax equivalent	$	51,333		$	45,703		$	42,874		$	42,497		$	46,186		$	182,407		$	179,556
Included in net interest income above:
Episodic items ⁽¹⁾	$	648		$	1,647		$	369		$	928		$	3,416		$	3,592		$	5,268
Net gains/(losses) from fair value adjustments on qualifying hedges included in net interest income		2,911			554			177			(187)			(872)			3,455			371
Purchase accounting adjustments		191			155			182			271			461			799			1,454
Interest-earning Assets Yields:
Mortgage loans, net		3.67	%		—	%		—	%		—	%		—	%		3.65	%		—	%
Mortgage loans, net		5.47			5.59			5.39			5.35			5.41			5.45			5.01
Commercial Business loans, net		5.87			6.04			5.89			5.90			6.11			5.92			5.81
Total loans, net		5.55			5.69			5.50			5.46			5.57			5.55			5.19
Taxable securities:
Mortgage-backed securities		6.04			5.06			4.31			3.19			3.02			4.90			2.60
Other securities		6.06			6.40			6.27			5.76			5.49			6.14			5.09
Total taxable securities		6.05			5.62			5.27			4.63			4.38			5.47			3.90
Tax-exempt securities: ⁽²⁾
Other securities		2.91			2.91			2.87			2.88			2.91			2.89			2.89
Total tax-exempt securities		2.91			2.91			2.87			2.88			2.91			2.89			2.89
Interest-earning deposits and federal funds sold		4.22			4.91			4.87			5.09			4.89			4.83			4.55
Total interest-earning assets⁽¹⁾		5.60	%		5.63	%		5.43	%		5.32	%		5.39	%		5.50	%		5.01	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.45	%		0.48	%		0.45	%		0.46	%		0.45	%		0.46	%		0.43	%
NOW accounts		3.63			3.99			3.97			3.82			3.77			3.85			3.31
Money market accounts		3.77			4.18			4.04			4.00			3.88			4.00			3.36
Certificate of deposit accounts		3.77			4.12			3.83			3.64			3.40			3.85			3.10
Total due to depositors		3.68			4.04			3.88			3.75			3.59			3.83			3.19
Mortgagors' escrow accounts		0.27			0.40			0.26			0.34			0.22			0.31			0.25
Total interest-bearing deposits		3.63			4.00			3.82			3.70			3.55			3.79			3.15
Borrowings		4.78			4.89			4.99			4.81			4.68			4.87			4.34
Total interest-bearing liabilities		3.75	%		4.10	%		3.95	%		3.83	%		3.68	%		3.91	%		3.29	%
Net interest rate spread (tax equivalent)⁽¹⁾		1.85	%		1.53	%		1.48	%		1.49	%		1.71	%		1.59	%		1.72	%
Net interest margin (tax equivalent)⁽¹⁾		2.39	%		2.10	%		2.05	%		2.06	%		2.29	%		2.15	%		2.24	%
Ratio of interest-earning assets to interest-bearing liabilities		1.17	X		1.16	X		1.17	X		1.17	X		1.19	X		1.17	X		1.19	X

⁽¹⁾

Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees/income.

⁽²⁾

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition


											4Q24 vs.		4Q24 vs.
	December 31,		September 30,		June 30,		March 31,		December 31,		3Q24		4Q23
(Dollars in thousands)	2024		2024		2024		2024		2023		% Change		% Change
Noninterest bearing	$	836,545	$	860,930	$	825,327	$	815,937	$	847,416	(2.8)	%	(1.3)	%
Interest bearing:
Certificate of deposit accounts		2,650,164		2,875,486		2,435,894		2,529,095		2,311,290	(7.8)		14.7
Savings accounts		98,964		100,279		103,296		105,147		108,605	(1.3)		(8.9)
Money market accounts		1,686,109		1,659,027		1,710,376		1,717,298		1,726,404	1.6		(2.3)
NOW accounts		1,854,069		2,003,301		1,774,268		2,003,649		1,771,164	(7.4)		4.7
Total interest-bearing deposits		6,289,306		6,638,093		6,023,834		6,355,189		5,917,463	(5.3)		6.3
Total due to depositors		7,125,851		7,499,023		6,849,161		7,171,126		6,764,879	(5.0)		5.3
Mortgagors' escrow deposits		53,082		73,372		57,702		82,081		50,382	(27.7)		5.4
Total deposits	$	7,178,933	$	7,572,395	$	6,906,863	$	7,253,207	$	6,815,261	(5.2)	%	5.3	%

Loan Composition


											4Q24 vs.		4Q24 vs.
	December 31,		September 30,		June 30,		March 31,		December 31,		3Q24		4Q23
(Dollars in thousands)	2024		2024		2024		2024		2023		% Change		% Change
Multifamily residential	$	2,527,222	$	2,638,863	$	2,631,751	$	2,622,737	$	2,658,205	(4.2)	%	(4.9)	%
Commercial real estate		1,973,124		1,929,093		1,894,509		1,925,312		1,958,252	2.3		0.8
One-to-four family ― mixed use property		511,222		515,511		518,510		516,198		530,243	(0.8)		(3.6)
One-to-four family ― residential		244,282		252,293		261,716		267,156		220,213	(3.2)		10.9
Construction		60,399		63,674		65,161		60,568		58,673	(5.1)		2.9
Mortgage loans		5,316,249		5,399,434		5,371,647		5,391,971		5,425,586	(1.5)		(2.0)

Small Business Administration		19,925		19,368		13,957		16,244		20,205	2.9		(1.4)
Commercial business and other		1,401,602		1,387,965		1,389,711		1,411,725		1,452,518	1.0		(3.5)
Commercial Business loans		1,421,527		1,407,333		1,403,668		1,427,969		1,472,723	1.0		(3.5)

Gross loans		6,737,776		6,806,767		6,775,315		6,819,940		6,898,309	(1.0)		(2.3)
Net unamortized (premiums) and unearned loan (cost) fees ⁽¹⁾		8,072		11,561		1,711		2,003		8,641	(30.2)		(6.6)
Allowance for credit losses		(40,152)		(40,342)		(41,648)		(40,752)		(40,161)	(0.5)		—
Net loans	$	6,705,696	$	6,777,986	$	6,735,378	$	6,781,191	$	6,866,789	(1.1)	%	(2.3)	%

⁽¹⁾	Includes $2.8 million, $3.1 million, $3.4 million, $3.6 million, and $3.9 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.

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

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)	2024		2024		2024		2024		2023		2024		2023
Multifamily residential	$	25,232	$	50,528	$	27,966	$	11,805	$	82,995	$	115,531	$	232,715
Commercial real estate		75,285		56,713		20,573		10,040		60,092		162,611		184,382
One-to-four family – mixed use property		6,622		5,709		3,980		750		3,319		17,061		20,097
One-to-four family – residential		739		1,705		689		52,539		1,454		55,672		6,883
Construction		9,338		5,063		4,594		1,895		8,007		20,890		34,381
Mortgage loans		117,216		119,718		57,802		77,029		155,867		371,765		478,458

Small Business Administration		1,368		5,930		—		—		1,162		7,298		2,300
Commercial business and other		106,580		91,447		68,162		52,955		87,255		319,144		337,322
Commercial Business loans		107,948		97,377		68,162		52,955		88,417		326,442		339,622

Total Closings	$	225,164	$	217,095	$	125,964	$	129,984	$	244,284	$	698,207	$	818,080

Weighted Average Rate on Loan Closings


	For the three months ended
	December 31,		September 30,		June 30,		March 31,		December 31,
Loan type	2024		2024		2024		2024		2023
Mortgage loans	7.12	%	7.31	%	7.58	%	6.36	%	7.55	%
Commercial Business loans	7.45		7.75		7.94		8.29		7.93
Total loans	7.28	%	7.51	%	7.77	%	7.13	%	7.69	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Credit 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)	2024			2024			2024			2024			2023			2024			2023
Allowance for credit losses - loans
Beginning balances	$	40,342		$	41,648		$	40,752		$	40,161		$	39,228		$	40,161		$	40,442

Net loan charge-off (recoveries):
Multifamily residential		(1)			—			(1)			—			(1)			(2)			(2)
Commercial real estate		421			—			—			—			—			421			8
One-to-four family – mixed-use property		—			—			(2)			—			(1)			(2)			(1)
One-to-four family – residential		(41)			(58)			(2)			13			9			(88)			(29)
Small Business Administration		(4)			(1)			(91)			(5)			(29)			(101)			(241)
Commercial business and other		4,361			3,095			4			(4)			82			7,456			11,077
Total net loan charge-offs (recoveries)		4,736			3,036			(92)			4			60			7,684			10,812

Provision (benefit) for loan losses		4,546			1,730			804			595			993			7,675			10,531

Ending balance	$	40,152		$	40,342		$	41,648		$	40,752		$	40,161		$	40,152		$	40,161

Gross charge-offs	$	4,790		$	3,110		$	11		$	58		$	107		$	7,969		$	11,157
Gross recoveries		54			74			103			54			47			285			345

Allowance for credit losses - loans to gross loans		0.60	%		0.59	%		0.61	%		0.60	%		0.58	%		0.60	%		0.58	%
Net loan charge-offs (recoveries) to average loans		0.28			0.18			(0.01)			—			—			0.11			0.16

Nonperforming Assets


	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			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		11,031			9,478			13,774			4,669			3,206
Commercial real estate		6,283			6,705			—			—			—
One-to-four family - mixed-use property		116			369			909			911			981
One-to-four family - residential		1,428			1,493			3,633			3,768			5,181
Small Business Administration		2,445			2,445			2,552			2,552			2,552
Commercial business and other		12,015			13,771			13,672			12,929			11,789
Total Nonaccrual loans		33,318			34,261			34,540			24,829			23,709

Total Nonperforming Loans (NPLs)		33,318			34,261			34,540			24,829			25,172

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

Total Nonaccrual HTM Securities		18,000			20,627			20,627			20,760			20,981

Total Nonperforming Assets	$	51,318		$	54,888		$	55,832		$	46,254		$	46,153

Nonperforming Assets to Total Assets		0.57	%		0.59	%		0.61	%		0.53	%		0.54	%
Allowance for Credit Losses to NPLs		120.5	%		117.7	%		120.6	%		164.1	%		159.5	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP (LOSS) 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)	2024			2024			2024			2024			2023			2024			2023

GAAP (loss) income before income taxes	$	(71,857)		$	11,457		$	7,136		$	4,997		$	11,754		$	(48,267)		$	39,833

Net (gain) loss from fair value adjustments (Noninterest income (loss))		1,136			(974)			(57)			834			(906)			939			(2,573)
Net loss on sale of securities (Noninterest income (loss))		72,315			—			—			—			—			72,315			—
Life insurance proceeds (Noninterest income (loss))		(284)			(1)			—			—			(697)			(285)			(1,281)
Valuation allowance on loans transferred to held for sale (Noninterest income (loss))		3,836			—			—			—			—			3,836			—
Net (gain) loss from fair value adjustments on qualifying hedges (Net interest income)		(2,911)			(554)			(177)			187			872			(3,455)			(371)
Prepayment penalty on borrowings (Noninterest expense)		2,572			—			—			—			—			2,572			—
Net amortization of purchase accounting adjustments and intangibles (Various)		(101)			(62)			(85)			(169)			(355)			(417)			(1,007)
Miscellaneous expense (Professional services)		218			10			494			—			526			722			526

Core income before taxes		4,924			9,876			7,311			5,849			11,194			27,960			35,127

Provision for core income taxes		715			2,153			1,855			1,537			3,648			6,260			10,209

Core net income	$	4,209		$	7,723		$	5,456		$	4,312		$	7,546		$	21,700		$	24,918

GAAP diluted (loss) earnings per common share	$	(1.61)		$	0.30		$	0.18		$	0.12		$	0.27		$	(1.05)		$	0.96
Net (gain) loss from fair value adjustments, net of tax		0.03			(0.03)			(0.01)			0.02			(0.02)			0.02			(0.06)
Net loss on sale of securities, net of tax		1.65			—			—			—			—			1.68			—
Life insurance proceeds		(0.01)			—			—			—			(0.02)			(0.01)			(0.04)
Valuation allowance on loans transferred to held for sale, net of tax		0.09			—			—			—			—			0.09			—
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		(0.07)			(0.01)			—			—			0.02			(0.08)			(0.01)
Prepayment penalty on borrowings, net of tax		0.06			—			—			—			—			0.06			—
Net amortization of purchase accounting adjustments, net of tax		—			—			—			—			(0.01)			(0.01)			(0.02)
Miscellaneous expense, net of tax		—			—			0.01			—			0.01			0.02			0.01

Core diluted earnings per common share⁽¹⁾	$	0.14		$	0.26		$	0.18		$	0.14		$	0.25		$	0.73		$	0.83

Core net income, as calculated above	$	4,209		$	7,723		$	5,456		$	4,312		$	7,546		$	21,700		$	24,918
Average assets		9,060,481			9,203,884			8,830,665			8,707,505			8,569,002			8,951,618			8,501,564
Average equity		662,190			672,762			667,557			669,185			669,819			667,913			675,151
Core return on average assets⁽²⁾		0.19	%		0.34	%		0.25	%		0.20	%		0.35	%		0.24	%		0.29	%
Core return on average equity⁽²⁾		2.54	%		4.59	%		3.27	%		2.58	%		4.51	%		3.25	%		3.69	%

⁽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, 718-961-5400‌16

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)	2024			2024			2024			2024			2023			2024			2023

GAAP Net interest income	$	51,235		$	45,603		$	42,776		$	42,397		$	46,085		$	182,011		$	179,152
Net (gain) loss from fair value adjustments on qualifying hedges		(2,911)			(554)			(177)			187			872			(3,455)			(371)
Net amortization of purchase accounting adjustments		(191)			(155)			(182)			(271)			(461)			(799)			(1,454)
Core Net interest income	$	48,133		$	44,894		$	42,417		$	42,313		$	46,496		$	177,757		$	177,327

GAAP Noninterest (loss) income	$	(71,022)		$	6,277		$	4,216		$	3,084		$	7,402		$	(57,445)		$	22,588
Net (gain) loss from fair value adjustments		1,136			(974)			(57)			834			(906)			939			(2,573)
Net loss on sale of securities		72,315			—			—			—			—			72,315			—
Valuation allowance on loans transferred to held for sale		3,836			—			—			—			—			3,836			—
Life insurance proceeds		(284)			(1)			—			—			(697)			(285)			(1,281)
Core Noninterest income	$	5,981		$	5,302		$	4,159		$	3,918		$	5,799		$	19,360		$	18,734

GAAP Noninterest expense	$	45,630		$	38,696		$	39,047		$	39,892		$	40,735		$	163,265		$	151,389
Prepayment penalty on borrowings		(2,572)			—			—			—			—			(2,572)			—
Net amortization of purchase accounting adjustments		(90)			(93)			(97)			(102)			(106)			(382)			(447)
Miscellaneous expense		(218)			(10)			(494)			—			(526)			(722)			(526)
Core Noninterest expense	$	42,750		$	38,593		$	38,456		$	39,790		$	40,103		$	159,589		$	150,416

Net interest income	$	51,235		$	45,603		$	42,776		$	42,397		$	46,085		$	182,011		$	179,152
Noninterest income (loss)		(71,022)			6,277			4,216			3,084			7,402			(57,445)			22,588
Noninterest expense		(45,630)			(38,696)			(39,047)			(39,892)			(40,735)			(163,265)			(151,389)
Pre-provision pre-tax net (loss) revenue	$	(65,417)		$	13,184		$	7,945		$	5,589		$	12,752		$	(38,699)		$	50,351

Core:
Net interest income	$	48,133		$	44,894		$	42,417		$	42,313		$	46,496		$	177,757		$	177,327
Noninterest income		5,981			5,302			4,159			3,918			5,799			19,360			18,734
Noninterest expense		(42,750)			(38,593)			(38,456)			(39,790)			(40,103)			(159,589)			(150,416)
Pre-provision pre-tax net revenue	$	11,364		$	11,603		$	8,120		$	6,441		$	12,192		$	37,528		$	45,645
Efficiency Ratio		79.0	%		77.2	%		82.6	%		86.1	%		76.7	%		81.0	%		76.7	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN

to CORE NET INTEREST INCOME

(Unaudited)


	For the three months ended															For the year ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
(Dollars in thousands)	2024			2024			2024			2024			2023			2024			2023
GAAP net interest income	$	51,235		$	45,603		$	42,776		$	42,397		$	46,085		$	182,011		$	179,152
Net (gain) loss from fair value adjustments on qualifying hedges		(2,911)			(554)			(177)			187			872			(3,455)			(371)
Net amortization of purchase accounting adjustments		(191)			(155)			(182)			(271)			(461)			(799)			(1,454)
Tax equivalent adjustment		98			100			98			100			101			396			404
Core net interest income FTE	$	48,231		$	44,994		$	42,515		$	42,413		$	46,597		$	178,153		$	177,731
Episodic items ⁽¹⁾		(648)			(1,647)			(369)			(928)			(3,416)			(3,592)			(5,268)
Net interest income FTE excluding episodic items	$	47,583		$	43,347		$	42,146		$	41,485		$	43,181		$	174,561		$	172,463

Total average interest-earning assets ⁽²⁾	$	8,590,022		$	8,712,443		$	8,358,006		$	8,238,395		$	8,080,550		$	8,475,681		$	8,027,898
Core net interest margin FTE		2.25	%		2.07	%		2.03	%		2.06	%		2.31	%		2.10	%		2.21	%
Net interest margin FTE excluding episodic items		2.22	%		1.99	%		2.02	%		2.01	%		2.14	%		2.06	%		2.15	%

GAAP interest income on total loans, net ⁽³⁾	$	94,104		$	95,780		$	92,728		$	92,959		$	95,616		$	375,571		$	355,348
Net (gain) loss from fair value adjustments on qualifying hedges - loans		29			(364)			(137)			123			978			(349)			(345)
Net amortization of purchase accounting adjustments		(216)			(168)			(198)			(295)			(484)			(877)			(1,503)
Core interest income on total loans, net	$	93,917		$	95,248		$	92,393		$	92,787		$	96,110		$	374,345		$	353,500

Average total loans, net ⁽²⁾	$	6,783,264		$	6,740,579		$	6,751,715		$	6,807,944		$	6,872,115		$	6,770,826		$	6,850,124
Core yield on total loans		5.54	%		5.65	%		5.47	%		5.45	%		5.59	%		5.53	%		5.16	%

⁽¹⁾	Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees/income.

⁽²⁾	Excludes purchase accounting average balances for all periods presented.

⁽³⁾	Excludes interest income from loans held for sale.

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


4Q24 Highlights
● Net interest margin FTE increased 10 bps YoY and 29 bps QoQ to 2.39%; Core net interest margin FTE decreased 6 bps YoY, but increased 18 bps QoQ to 2.25%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, swap termination fees and income, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled 17 bps in 4Q24 compared to 15 bps in 4Q23 and 11 bps in 3Q24; The net result of the balance sheet restructuring is expected to increase the NIM by approximately 10-15 bps in 1Q25 ● Average total deposits increased 8.2% YoY but decreased 0.2% QoQ to $7.4 billion; Average noninterest bearing (NIB) deposits declined 0.4% YoY but increased 2.9% QoQ and totaled 11.7% of total average deposits compared to 12.7% in 4Q23 and 11.3% in 3Q24. Average CDs were $2.7 billion, up 14.6% YoY and 7.0% QoQ ● Period end net loans decreased 2.3% YoY and 1.1% QoQ to $6.7 billion; Loan closings were $225.2 million, down 7.8% YoY, but up 3.7% QoQ; Back-to-back swap loan originations were $58.5 million compared to $38.5 million in 3Q24 and generated $0.9 million and $0.6 million of noninterest income, respectively; Loan pipeline increased 21.9% YoY, but declined 32.1% QoQ to $198.9 million; Approximately 27% of the loan pipeline consists of back-to-back swap loans ● NPAs totaled $51.3 million (57 bps of assets) in 4Q24 compared to $46.2 million (54 bps) a year ago and $54.9 million (59 bps) in the prior quarter; A $2.6 million reserve was allocated to the Company’s largest NPA based on updated information ● Noninterest expense growth was 12% YoY in 4Q24 and 7.8% for 2024; Core noninterest expense growth was 6.6% YoY in 4Q24 and 6.1% in 2024, in line with our target of mid-single digit increase for 2024 ● Provision for credit losses was $6.4 million in 4Q24 compared to $1.0 million in 4Q23 and $1.7 million in 3Q24; Net charge-offs were $4.7 million in 4Q24 compared to $60,000 in 4Q23 and $3.0 million in 3Q24; 4Q24 net charge-offs primarily relate to loans that were previously fully reserved ● Tangible Common Equity to Tangible Assets was 7.82% at December 31, 2024, compared to 7.00% at September 30, 2024; Tangible book value per share was $20.97 compared to $22.54 a year ago
Areas of Focus
Increase NIM and Reduce Volatility	● GAAP and Core NIM increased by 29 bps and 18 bps QoQ, respectively, in 4Q24 ● Approximately 27% of the loan portfolio consists of floating rate loans (including hedges) ● Average NIB deposits increased 2.9% QoQ and accounted for 11.7% of average total deposits
Maintain Credit Discipline	● Approximately 90% of the loan portfolio is collateralized by real estate with an average loan to value of less than 35% ● Weighted average debt service coverage ratio is approximately 1.8x for multifamily and investor commercial real estate loans ● Criticized and classified loans are 1.07% of gross loans ● Manhattan office buildings exposure is minimal at 0.5% of gross loans
Preserve Strong Liquidity and Capital	● Maintaining ample liquidity with $3.6 billion of undrawn lines and resources as of December 31, 2024 ● Uninsured and uncollateralized deposits were 17% of total deposits, while uninsured deposits were 31% of total deposits ● Total average deposits increased by 8.2% YoY, but declined 0.2% QoQ ● Tangible Common Equity to Tangible Assets was 7.82% at December 31, 2024, up 82 bps QoQ
Bend the Expense Curve	● GAAP noninterest expense to average assets was 2.01% in 4Q24 compared to 1.90% in 4Q23 and 1.68% in 3Q24 ● GAAP and Core noninterest expense growth was 7.8% and 6.1% in 2024, respectively, as investments were made to improve long term profitability