Flushing Financial Corporation Reports 3Q22 GAAP EPS of

0
246


Loan Growth Despite Rising Rates

John R. Buran, President and CEO Commentary

UNIONDALE, N.Y., Oct. 25, 2022 (GLOBE NEWSWIRE) — The Company reported third quarter 2022 GAAP EPS of $0.76, down 6.2% YoY, with a ROAA of 1.11%, and ROAE of 13.91%. Core 3Q22 EPS was $0.62, a lower of 29.5% YoY, with a ROAA of 0.90% and the ROAE of 11.24%.  

“We supported customers by achieving loan growth of 3.1% QoQ, excluding the impact of PPP loans, while increasing the origination yield by 68 bps for the quarter, as the quarter was dominated by Fed rate increases. Credit quality, a hallmark of the Company, remained solid with only 2 bps of net charge-offs this quarter. The Company opportunistically raised $65 million of subordinated debt capital to lock in funding at an attractive rate. The Fed rate movements resulted in the NIM compressing 28 bps during the third quarter given the rapid rise in rates. Despite the NIM pressure in the short term, loans are expected to reprice higher over time. Approximately $1.0 billion or 15% of loans reprice within 90 days of index changes and $1.9 billion or 27% of loans are expected to contractually reprice higher by 200 bps through the end of 2024. There are over $500 million of funding swaps that have attractive rates now and will reprice lower by approximately 70 bps through 2023. Our community focus continued to shine this quarter as we supported several events, including the Flushing and Port Jefferson Dragon Boat festivals and our Harvest Moon Reception.”

– John R. Buran, President and CEO

Loan Closings up 90.1% YoY; NIM Declined QoQ. Period finish web loans, excluding PPP, elevated 3.1% QoQ, with balanced development between actual property and business business and different loans. Loan closings, excluding PPP, had been up 90.1% YoY, whereas compensation speeds declined each YoY and QoQ. Despite the mortgage closings growing, web curiosity revenue of $61.2 million decreased 3.4% YoY and 5.4% QoQ, primarily as a result of elevated funding prices. NIM FTE was 3.07% in 3Q22 in comparison with 3.35% in 2Q22 and three.34% a yr in the past. Core NIM FTE decreased by 24 bps to three.03% YoY and 30 bps QoQ. The Company employed 46 folks, together with 20 income producers, since March 31, 2021 from establishments concerned with financial institution mergers.

Returned 40% of Earnings in 3Q22; Tangible Book Value Per Share Increased 3% YoY. The Company repurchased 131,174 shares of widespread inventory at a mean worth of $20.47 in the course of the quarter. Book worth and tangible ebook worth per share had been $22.47 and $21.81, respectively, whereas TCE/TA1 was 7.62% at September 30, 2022 in comparison with 7.82% at June 30, 2022.

    3Q22     2Q22   1Q22   4Q21   3Q21
GAAP:                      
EPS   $0.76     $0.81     $0.58   $0.58   $0.81  
ROAA (%)     1.11       1.22       0.91     0.89     1.26  
ROAE (%)     13.91       15.00       10.83     10.77     15.42  
NIM FTE3 (%)     3.07       3.35       3.36     3.29     3.34  
Core:                      
EPS   $0.62     $0.70     $0.61   $0.67   $0.88  
ROAA (%)     0.90       1.05       0.94     1.04     1.38  
ROAE (%)     11.24       12.90       11.27     12.49     16.88  
Core NIM FTE (%)     3.03       3.33       3.31     3.21     3.27  
Credit Quality:                      
NPAs/Loans&REO (%)     0.72       0.72       0.21     0.23     0.31  
ACLs/Loans (%)     0.59       0.58       0.57     0.56     0.55  
ACLs/NPLs (%)     142.29       141.06       266.12     248.66     179.86  
NCOs/Avg Loans (%)     0.02       (0.03 )     0.06         (0.04 )
Balance Sheet:                      
Avg Loans ($B)   $6.9     $6.6     $6.6   $6.6   $6.6  
Avg Dep ($B)   $6.3     $6.4     $6.4   $6.5   $6.4  
Book Value/Share   $22.47     $22.38     $22.26   $22.26   $21.78  
Tangible BV/Share   $21.81     $21.71     $21.61   $21.61   $21.13  
TCE/TA (%)     7.62       7.82       8.05     8.22     8.04  
                       

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

  • Period finish web loans, excluding PPP, elevated 3.1% QoQ and 6.8% YoY; mortgage closings had been $463.7 million at 4.60% in 3Q22, down 8.0% from report ranges QoQ, however up 90.1% YoY whereas the yield elevated 68 bps QoQ and 96 bps YoY
  • Loan pipeline decreased 41.8% YoY to $309.1 million as we grow to be extra selective in phrases of charge and collateral sort and debtors adjusted to increased charges
  • Issued $65 million of subordinated notes at 6.00% in the course of the 3Q22
  • NPAs elevated to $50.0 million from $48.9 million at 2Q22 and from $20.2 million at 3Q21
  • Provision for credit score losses was $2.1 million in 3Q22 in comparison with a profit for credit score losses of $6.9 million in 3Q21; web charge-offs had been $0.3 million in 3Q22 in comparison with web recoveries of $0.6 million in 3Q21
  • Net curiosity revenue decreased 5.4% QoQ and three.4% YoY to $61.2 million; Core web curiosity revenue declined 6.2% QoQ and a couple of.7% YoY to $60.4 million
  • Net curiosity margin FTE decreased 28 bps QoQ and 27 bps YoY to three.07%; Core web curiosity margin FTE decreased 30 bps QoQ and 24 bps YoY to three.03%; The decline in GAAP and Core NIM QoQ was primarily pushed by our legal responsibility delicate steadiness sheet leading to liabilities repricing quicker than belongings over the close to time period however reversing as loans reprice over the subsequent couple of years
  • Average deposits, together with mortgage escrow, decreased 2.6% QoQ and a couple of.1% YoY to $6.3 billion, with core deposits comprising 83.1% of complete common deposits
  • Signed a lease to open a brand new department in Brooklyn increasing our Asian banking footprint
  • Tangible Common Equity to Tangible Assets was 7.62% down from 7.82% at 2Q22; the change in collected different complete loss, web of taxes (primarily from rising charges) impacted this ratio by 18 bps in 3Q22 in comparison with 2Q22
  • Repurchased 131,174 shares at a mean worth of $20.47; dividends and share repurchases had been 40% of web revenue in 3Q22
Income Statement Highlights
                            YoY   QoQ
($000s, besides EPS)     3Q22     2Q22   1Q22   4Q21   3Q21   Change   Change
                                     
Net Interest Income     $61,206     $64,730   $63,479   $62,674     $63,364     (3.4 ) %   (5.4 ) %
Provision (Benefit) for Credit Losses       2,145       1,590     1,358     761       (6,927 )   (131.0 )     34.9    
Noninterest Income (Loss)       8,995       7,353     1,313     (280 )     866     938.7       22.3    
Noninterest Expense       35,634       35,522     38,794     38,807       36,345     (2.0 )     0.3    
Income Before Income Taxes       32,422       34,971     24,640     22,826       34,812     (6.9 )     (7.3 )  
Provision for Income Taxes       8,980       9,936     6,421     4,743       9,399     (4.5 )     (9.6 )  
Net Income     $23,442     $25,035   $18,219   $18,083     $25,413     (7.8 )     (6.4 )  
Diluted EPS     $0.76     $0.81   $0.58   $0.58     $0.81     (6.2 )     (6.2 )  
Avg. Diluted Shares (000s)       30,695       30,937     31,254     31,353       31,567     (2.8 )     (0.8 )  
                                     
Core Net Income1     $18,953     $21,518   $18,969   $20,968     $27,829     (31.9 )     (11.9 )  
Core EPS1     $0.62     $0.70   $0.61   $0.67     $0.88     (29.5 )     (11.4 )  

1 See Reconciliation of GAAP Earnings and Core Earnings

Net curiosity revenue totaled $61.2 million in 3Q22 in comparison with $64.7 million in 2Q22, $63.5 million in 1Q22, $62.7 million in 4Q21, and $63.4 million in 3Q21.

  • Net curiosity margin, FTE (“NIM”) of 3.07% decreased 27 bps YoY and 28 bps QoQ
  • Prepayment penalty revenue from loans and securities, web reversals and recoveries of curiosity from nonaccrual loans, web beneficial properties and losses from truthful worth changes on qualifying hedges, and buy accounting accretion totaled $2.2 million (11 bps to the NIM) in 3Q22 in comparison with $2.6 million (13 bps) in 2Q22, $2.6 million (14 bps) in 1Q22, $3.1 million (16 bps) in 4Q21, and $3.4 million (19 bps) in 3Q21
  • Excluding the gadgets within the earlier bullet, web curiosity margin was 2.96% in 3Q22, 3.22% in 2Q22 and in 1Q22, 3.13% in 4Q21, and three.15% in 3Q21

The Company recorded a provision for credit score losses of $2.1 million in 3Q22, $1.6 million in 2Q22, $1.4 million in 1Q22, and $0.8 million in 4Q21 in comparison with a profit for credit score losses of $6.9 million in 3Q21.

  • 3Q22 provision for credit score losses of $2.1 million was primarily on account of elevated reserves on two beforehand recognized credit and mortgage development
  • Net charge-offs (recoveries) had been $0.3 million in 3Q22 (2 bps of common loans), $(0.5) million in 2Q22 ((3) bps of common loans), $0.9 million in 1Q22 (6 bps of common loans), $(29) thousand in 4Q21 (negligible as in comparison with common loans), and $(0.6) million in 3Q21 ((4) bps of common loans)

Noninterest revenue (loss) was $9.0 million in 3Q22, $7.4 million in 2Q22, $1.3 million in 1Q22, $(0.3) million in 4Q21, and $0.9 million in 3Q21.

  • Noninterest revenue included web beneficial properties (losses) from truthful worth changes of $5.6 million in 3Q22 or $0.13 per share, web of tax, $2.5 million in 2Q22 or $0.06 per share, web of tax, $(1.8) million in 1Q22 or $(0.04) per share, web of tax, $(5.1) million in 4Q21 or $(0.13) per share, web of tax, and $(2.3) million in 3Q21 or $(0.05) per share, web of tax
  • Life insurance proceeds had been $1.5 million ($0.05 per share) in 2Q22
  • Absent all above gadgets and different immaterial changes, core noninterest revenue was $3.4 million in 3Q22, up 6.4% YoY, and a couple of.6% QoQ
  • Included in 4Q21 core noninterest revenue was a one-time $2.0 million ($0.05 per share, web of tax) dividend obtained on retirement plan investments

Noninterest expense totaled $35.6 million in 3Q22 (a lower of 2.0% YoY, however a rise of 0.3% QoQ) in comparison with $35.5 million in 2Q22, $38.8 million in 1Q22, $38.8 million in 4Q21, and $36.3 million in 3Q21.

  • Other working bills embody $0.6 million discount in reserves for unfunded commitments in 3Q22
  • Included in 1Q22 noninterest expense was $4.3 million of seasonal compensation expense; 4Q21 noninterest expense included a one-time $4.3 million ($0.11 per share, web of tax) of elevated compensation and advantages for all staff on account of a report yr of earnings in 2021 and worker efficiency by way of the pandemic
  • Noninterest expense included $17 thousand pre-tax merger profit (<$0.01 per share, web of tax) in 4Q21 and $2.1 million of pre-tax merger costs ($0.05 per share, web of tax) in 3Q21
  • Excluding the results of the merger and different immaterial changes, core working bills had been $35.5 million in 3Q22, up 4.1% YoY and 0.3% QoQ
  • GAAP noninterest expense to common belongings was 1.69% in 3Q22, 1.73% in 2Q22, 1.93% in 1Q22, 1.92percentin 4Q21, and 1.80% in 3Q21

The provision for revenue taxes was $9.0 million in 3Q22 in comparison with $9.9 million in 2Q22, $6.4 million in 1Q22, $4.7 million in 4Q21, and $9.4 million in 3Q21.

  • The efficient tax charge was 27.7% in 3Q22, 28.4% in 2Q22, 26.1% in 1Q22, 20.8% in 4Q21, and 27.0% in 3Q21
  • The 2Q22 efficient tax charge features a loss of a sure state and metropolis tax deductions and a decision of sure examinations by taxing authorities
  • The 4Q21 efficient tax charge declined on account of decrease ranges of taxable state revenue and better share of everlasting variations
Balance Sheet, Credit Quality, and Capital Highlights
                          YoY   QoQ
    3Q22     2Q22   1Q22   4Q21   3Q21   Change   Change
Average Loans And Deposits ($MM)                                  
Loans   $6,861     $6,640   $6,579   $6,558   $6,633   3.4   %   3.3   %
Deposits     6,277       6,441     6,410     6,459     6,408   (2.1 )     (2.6 )  
                                   
Credit Quality ($000s)                                  
Nonperforming Loans   $29,003     $27,948   $14,066   $14,934   $20,217   43.5   %   3.8   %
Nonperforming Assets     49,984       48,929     14,066     14,934     20,217   147.2       2.2    
Criticized and Classified Loans     61,684       57,145     59,548     57,650     68,913   (10.5 )     7.9    
Criticized and Classified Assets     82,665       78,125     80,527     78,628     89,889   (8.0 )     5.8    
Troubled Debt Restructured Loans     14,757       14,758     15,124     12,714     13,097   12.7       (0.0 )  
Allowance for Credit Losses/Loans (%)     0.59       0.58     0.57     0.56     0.55   4   bps   1   bp
                                   
Capital                                  
Book Value/Share   $22.47     $22.38   $22.26   $22.26   $21.78   3.2   %   0.4   %
Tangible Book Value/Share     21.81       21.71     21.61     21.61     21.13   3.2       0.5    
Tang. Common Equity/Tang. Assets (%)     7.62       7.82     8.05     8.22     8.04   (42 ) bps   (20 ) bps
Leverage Ratio (%)     8.74       8.91     9.05     8.98     8.83   (9 )     (17 )  


Average loans
had been $6.9 billion, a rise of 3.4% YoY and three.3% QoQ.

  • Period finish web loans, excluding PPP loans, totaled $6.9 billion, up 6.8% YoY and three.1% QoQ
  • Total mortgage closings had been $463.7 million in 3Q22, $503.8 million in 2Q22, $329.3 million in 1Q22, $362.7 million in 4Q21, and $243.9 million in 3Q21
  • The mortgage pipeline was $309.1 million at September 30, 2022, down 41.8% YoY and 46.9% QoQ

Average Deposits totaled $6.3 billion, lowering 2.1% YoY and a couple of.6% QoQ.

  • Average core deposits (non-CD deposits) had been 83.1% of complete common deposits (together with escrow deposits) in 3Q22, in comparison with 83.8% a yr in the past
  • Average noninterest bearing deposits elevated 12.5% YoY and 0.5% QoQ and comprised 16.7% of complete common deposits (together with escrow deposits) in 3Q22 in comparison with 14.6% a yr in the past

Credit Quality: Nonperforming loans held on the finish of every quarter totaled $29.0 million at 3Q22, $27.9 million at 2Q22, $14.1 million at 1Q22, $14.9 million at 4Q21, and $20.2 million at 3Q21.

  • Criticized and labeled had been 89 bps of loans at 3Q22 in comparison with 85 bps at 2Q22, 90 bps at 1Q22, 87 bps at 4Q21, and 104 bps at 3Q21
  • Criticized and labeled belongings are composed of criticized and labeled loans, as detailed above, plus one criticized funding safety totaling $21.0 million in every quarter of 3Q22, 2Q22, 1Q22, 4Q21, and 3Q21
  • Over 88% of gross loans are collateralized by actual property with a mean loan-to-value ratio of <37% as of September 30, 2022
  • Allowance for credit score losses had been 142.3% of nonperforming loans at 3Q22 in comparison with 141.1% at 2Q22 and 179.9% a yr in the past

Capital: Book worth per widespread share was $22.47 at 3Q22, up 0.4% QoQ and three.2% YoY; tangible ebook worth per widespread share, a non-GAAP measure, was $21.81 at 3Q22, up 0.5% QoQ and three.2% YoY.

  • The Company paid a dividend of $0.22 per share and repurchased 131,174 shares at a mean worth of $20.47 in 3Q22
  • At the tip of 3Q22, 969,324 shares stay topic to repurchase beneath the approved inventory repurchase program, which has no expiration or most greenback restrict
  • Tangible widespread fairness to tangible belongings was 7.62% at 3Q22 in comparison with 7.82% at 2Q22 and eight.04% at 3Q21
  • The Company and the Bank stay nicely capitalized beneath all relevant regulatory necessities
  • The leverage ratio was 8.74% at 3Q22 in comparison with 8.91% at 2Q22 and eight.83% at 3Q21
Conference Call Information And Fourth Quarter Earnings Release Date

Conference Call Information:

  • John R. Buran, President and Chief Executive Officer, and Susan Ok. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a convention name on Wednesday, October 26, 2022, at 9:30 AM (ET) to debate the Company’s third quarter 2022 outcomes and technique.
  • Dial-in for Live Call: 1-877-509-5836; Canada 855-669-9657
  • Webcast: https://services.choruscall.com/mediaframe/webcast.html?webcastid=xiCFFixk
  • Dial-in for Replay: 1-877-344-7529; Canada 855-669-9658
  • Replay Access Code: 8005279
  • The convention name can be concurrently webcast and archived

Fourth Quarter 2022 Earnings Release Date:

The Company plans to launch Fourth Quarter and full yr 2022 monetary outcomes after the market shut on January 24, 2023; adopted by a convention name at 9:30 AM (ET) on January 25, 2023.

An in depth announcement can be issued previous to the fourth quarter’s shut confirming the date and time of the earnings launch.

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding firm for Flushing Bank®, an FDIC insured, New York State—chartered business financial institution that operates banking places of work in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been constructing relationships with households, business house owners, and communities since 1929. Today, it provides the merchandise, companies, and conveniences related to giant business banks, together with a full complement of deposit, mortgage, tools finance, and money administration companies. Rewarding prospects with personalised consideration and bankers that may talk within the languages prevalent inside these multicultural markets is what makes the Bank uniquely completely different. As an Equal Housing Lender and chief in actual property lending, the Bank’s skilled lending groups create mortgage options for actual property house owners and property managers each inside and out of doors the New York City metropolitan space. The Bank additionally fosters relationships with customers nationwide by way of its on-line banking division with the iGObanking® and BankPurely® manufacturers.

Additional data on Flushing Bank and Flushing Financial Corporation could also be obtained by visiting the Company’s web site at FlushingBank.com. Flushing Financial Corporation’s earnings launch and presentation slides can be out there previous to the convention name at www.FlushingBank.com beneath Investor Relations.

“Safe Harbor” Statement beneath the Private Securities Litigation Reform Act of 1995: Statements on this Press Release regarding plans, methods, financial efficiency and developments, projections of outcomes of particular actions or investments and different statements that aren’t descriptions of historic info could also be forward-looking statements throughout the that means 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 data is inherently topic to dangers and uncertainties, and precise outcomes may differ materially from these presently anticipated on account of a quantity of elements, which embody, however should not restricted to, threat elements mentioned within the Company’s Annual Report on Form 10-Ok for the fiscal yr ended December 31, 2021 and in different paperwork filed by the Company with the Securities and Exchange Commission infrequently. Forward-looking statements could also be recognized by phrases reminiscent of “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or related phrases or the damaging of these phrases. Although we imagine that the expectations mirrored within the forward-looking statements are cheap, we can not assure future outcomes, ranges of exercise, efficiency or achievements. The Company has no obligation to replace these forward-looking statements.

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

#FF

– Statistical Tables Follow –

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

    At or for the three months ended     At or for the 9 months ended
    September 30,   June 30,   March 31,   December 31,   September 30,     September 30,   September 30,
(Dollars in 1000’s, besides per share knowledge)   2022   2022   2022   2021   2021     2022   2021
Performance Ratios (1)                                                                  
Return on common belongings     1.11   %     1.22   %     0.91   %     0.89   %     1.26   %       1.08   %     1.04   %
Return on common fairness     13.91         15.00         10.83         10.77         15.42           13.24         13.24    
Yield on common interest-earning belongings (2)     4.10         3.85         3.77         3.77         3.84           3.91         3.77    
Cost of common interest-bearing liabilities     1.25         0.60         0.50         0.58         0.61           0.79         0.65    
Cost of funds     1.08         0.52         0.43         0.50         0.53           0.68         0.57    
Net rate of interest unfold throughout interval (2)     2.85         3.25         3.27         3.19         3.23           3.12         3.12    
Net curiosity margin (2)     3.07         3.35         3.36         3.29         3.34           3.26         3.22    
Noninterest expense to common belongings     1.69         1.73         1.93         1.92         1.80           1.78         1.77    
Efficiency ratio (3)     55.68         52.27         58.87         58.66         52.28           55.57         54.72    
Average interest-earning belongings to
common interest-bearing liabilities
    1.22   X     1.22   X     1.22   X     1.22   X     1.21   X       1.22   X     1.19   X
                                                                   
Average Balances                                                                  
Total loans, web   $ 6,861,463       $ 6,640,331       $ 6,578,680       $ 6,558,285       $ 6,633,301         $ 6,694,528       $ 6,673,309    
Total interest-earning belongings     7,979,070         7,740,683         7,570,373         7,627,256         7,608,317           7,764,873         7,688,354    
Total belongings     8,442,657         8,211,763         8,049,470         8,090,701         8,072,918           8,236,070         8,161,121    
Total on account of depositors     5,157,715         5,298,855         5,336,983         5,397,802         5,406,423           5,263,861         5,422,158    
Total interest-bearing liabilities     6,553,087         6,337,374         6,220,510         6,276,221         6,310,859           6,371,542         6,439,928    
Stockholders’ fairness     674,282         667,456         673,012         671,474         659,288           671,588         641,354    
                                                                   
Per Share Data                                                                  
Book worth per widespread share (4)   $ 22.47       $ 22.38       $ 22.26       $ 22.26       $ 21.78         $ 22.47       $ 27.78    
Tangible ebook worth per widespread share (5)   $ 21.81       $ 21.71       $ 21.61       $ 21.61       $ 21.13         $ 21.81       $ 21.13    
                                                                   
Stockholders’ Equity                                                                  
Stockholders’ fairness   $ 670,719       $ 670,812       $ 675,813       $ 679,628       $ 668,096         $ 670,719       $ 668,096    
Tangible stockholders’ fairness     650,936         650,894         656,085         659,758         648,039           650,936         648,039    
                                                                   
Consolidated Regulatory Capital Ratios                                                                  
Tier 1 capital   $ 749,526       $ 739,776       $ 731,536       $ 726,174       $ 711,276         $ 749,526       $ 711,276    
Common fairness Tier 1 capital     701,532         686,258         675,434         671,494         661,340           701,532         661,340    
Total risk-based capital     979,021         903,047         892,861         885,469         832,255           979,021         832,255    
Risk Weighted Assets     6,689,284         6,522,710         6,232,020         6,182,095         6,194,207           6,689,284         6,194,207    
                                                                   
Tier 1 leverage capital
(nicely capitalized = 5%)
    8.74   %     8.91   %     9.05   %     8.98   %     8.83   %       8.74   %     8.83   %
Common fairness Tier 1 risk-based capital (nicely capitalized = 6.5%)     10.49         10.52         10.84         10.86         10.68           10.49         10.68    
Tier 1 risk-based capital
(nicely capitalized = 8.0%)
    11.20         11.34         11.74         11.75         11.48           11.20         11.48    
Total risk-based capital
(nicely capitalized = 10.0%)
    14.64         13.84         14.33         14.32         13.44           14.64         13.44    
                                                                   
Capital Ratios                                                                  
Average fairness to common belongings     7.99   %     8.13   %     8.36   %     8.30   %     8.17   %       8.15   %     7.86   %
Equity to complete belongings     7.84         8.04         8.27         8.45         8.27           7.84         8.27    
Tangible widespread fairness to tangible belongings (6)     7.62         7.82         8.05         8.22         8.04           7.62         8.04    
                                                                   
Asset Quality                                                                  
Nonaccrual loans (7)   $ 27,003       $ 27,848       $ 14,066       $ 14,933       $ 18,292         $ 27,003       $ 18,292    
Nonperforming loans     29,003         27,948         14,066         14,933         20,217           29,003         20,217    
Nonperforming belongings     49,984         48,929         14,066         14,933         20,217           49,984         20,217    
Net charge-offs (recoveries)     290         (501 )       935         (29 )       (619 )         724         3,148    
                                                                   
Asset Quality Ratios                                                                  
Nonperforming loans to gross loans     0.42   %     0.41   %     0.21   %     0.23   %     0.31   %       0.42   %     0.31   %
Nonperforming belongings to complete belongings     0.58         0.59         0.17         0.19         0.25           0.58         0.25    
Allowance for credit score losses to gross loans     0.59         0.58         0.57         0.56         0.55           0.59         0.55    
Allowance for credit score losses to
nonperforming belongings
    82.56         80.57         266.12         248.66         179.86           82.56         179.86    
Allowance for credit score losses to
nonperforming loans
    142.29         141.06         266.12         248.66         179.86           142.29         179.86    
Net charge-offs (recoveries) to common loans     0.02         (0.03 )       0.06                 (0.04 )         0.01         0.06    
                                                                   
Full-service buyer amenities     25         25         24         24         24           25         24    

____________
(1) Ratios are offered on an annualized foundation, the place acceptable.
(2) Yields are calculated on the tax equal foundation utilizing the statutory federal revenue tax charge of 21% for the intervals offered.
(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing noninterest expense (excluding merger expense, OREO expense, prepayment penalty on borrowings, the web achieve/loss from the sale of OREO and web amortization of buy accounting changes) by the full of web curiosity revenue (excluding web beneficial properties and losses from truthful worth changes on qualifying hedges and web amortization of buy accounting changes) and noninterest revenue (excluding life insurance proceeds, web beneficial properties and losses from the sale or disposition of securities, belongings and truthful worth changes).
(4) Calculated by dividing stockholders’ fairness by shares excellent.
(5) Calculated by dividing tangible stockholders’ widespread fairness, a non-GAAP measure, by shares excellent. Tangible stockholders’ widespread fairness is stockholders’ fairness much less intangible belongings (goodwill, web of deferred taxes). See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(6) See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(7) Excludes performing nonaccrual TDR loans.

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

  For the three months ended       For the 9 months ended
  September 30,   June 30,   March 31,   December 31,   September 30,       September 30,   September 30,
(In 1000’s, besides per share knowledge) 2022   2022   2022     2021     2021         2022   2021  
Interest and Dividend Income                                            
Interest and charges on loans $ 75,546   $ 69,192   $ 67,516     $ 68,113     $ 69,198         $ 212,254   $ 206,218  
Interest and dividends on securities:                                            
Interest   5,676     4,929     3,745       3,536       3,706           14,350     10,463  
Dividends   17     11     8       7       7           36     22  
Other curiosity revenue   506     159     51       74       42           716     129  
Total curiosity and dividend revenue   81,745     74,291     71,320       71,730       72,953           227,356     216,832  
                                             
Interest Expense                                            
Deposits   11,965     4,686     3,408       3,975       4,705           20,059     16,349  
Other curiosity expense   8,574     4,875     4,433       5,081       4,884           17,882     15,188  
Total curiosity expense   20,539     9,561     7,841       9,056       9,589           37,941     31,537  
                                             
Net Interest Income   61,206     64,730     63,479       62,674       63,364           189,415     185,295  
Provision (profit) for credit score losses   2,145     1,590     1,358       761       (6,927 )         5,093     (5,705 )
Net Interest Income After Provision (Benefit)
for Credit Losses
  59,061     63,140     62,121       61,913       70,291           184,322     191,000  
                                             
Noninterest Income (Loss)                                            
Banking companies price revenue   1,351     1,166     1,374       1,142       865           3,891     4,823  
Net achieve (loss) on sale of securities                       (10 )             113  
Net achieve on sale of loans       73           46       131           73     289  
Net achieve on disposition of belongings                                     621  
Net achieve (loss) from truthful worth changes   5,626     2,533     (1,809 )     (5,140 )     (2,289 )         6,350     (7,855 )
Federal Home Loan Bank of New York
inventory dividends
  538     407     397       417       491           1,342     1,680  
Life insurance proceeds       1,536                           1,536      
Bank owned life insurance   1,132     1,115     1,114       1,023       1,015           3,361     3,021  
Other revenue   348     523     237       2,232       663           1,108     1,275  
Total noninterest revenue (loss)   8,995     7,353     1,313       (280 )     866           17,661     3,967  
                                             
Noninterest Expense                                            
Salaries and worker advantages   21,438     21,109     23,649       25,223       20,544           66,196     63,087  
Occupancy and tools   3,541     3,760     3,604       3,579       3,534           10,905     10,423  
Professional companies   2,570     2,285     2,222       1,152       1,899           7,077     6,287  
FDIC deposit insurance   738     615     420       391       618           1,773     2,560  
Data processing   1,367     1,383     1,424       1,757       1,759           4,174     5,287  
Depreciation and amortization   1,488     1,447     1,460       1,521       1,627           4,395     4,904  
Other actual property owned/foreclosures expense   143     32     84       129       182           259     194  
Other working bills   4,349     4,891     5,931       5,055       6,182           15,171     15,773  
Total noninterest expense   35,634     35,522     38,794       38,807       36,345           109,950     108,515  
                                             
Income Before Provision for Income Taxes   32,422     34,971     24,640       22,826       34,812           92,033     86,452  
                                             
Provision for Income Taxes   8,980     9,936     6,421       4,743       9,399           25,337     22,742  
                                             
Net Income $ 23,442   $ 25,035   $ 18,219     $ 18,083     $ 25,413         $ 66,696   $ 63,710  
                                             
Basic earnings per widespread share $ 0.76   $ 0.81   $ 0.58     $ 0.58     $ 0.81         $ 2.15   $ 2.02  
Diluted earnings per widespread share $ 0.76   $ 0.81   $ 0.58     $ 0.58     $ 0.81         $ 2.15   $ 2.02  
Dividends per widespread share $ 0.22   $ 0.22   $ 0.22     $ 0.21     $ 0.21         $ 0.66   $ 0.63  
                                             
Basic common shares   30,695     30,937     31,254       31,353       31,567           30,960     31,616  
Diluted common shares   30,695     30,937     31,254       31,353       31,567           30,960     31,616  

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

    September 30,   June 30,   March 31,   December 31,   September 30,
(Dollars in 1000’s)   2022     2022     2022     2021     2021  
ASSETS                              
Cash and due from banks   $ 164,693     $ 137,026     $ 186,407     $ 81,723     $ 178,598  
Securities held-to-maturity:                              
Mortgage-backed securities     7,880       7,885       7,890       7,894       7,899  
Other securities     66,032       66,230       66,327       49,974       49,989  
Securities out there on the market:                              
Mortgage-backed securities     468,366       510,934       553,828       572,184       584,145  
Other securities     351,495       346,720       286,041       205,052       212,654  
Loans     6,956,674       6,760,393       6,607,264       6,638,105       6,630,354  
Allowance for credit score losses     (41,268 )     (39,424 )     (37,433 )     (37,135 )     (36,363 )
Net loans     6,915,406       6,720,969       6,569,831       6,600,970       6,593,991  
Interest and dividends receivable     42,571       38,811       37,308       38,698       40,912  
Bank premises and tools, web     22,376       22,285       22,752       23,338       24,018  
Federal Home Loan Bank of New York inventory     62,489       50,017       33,891       35,937       36,158  
Bank owned life insurance     212,353       211,220       211,867       210,754       184,730  
Goodwill     17,636       17,636       17,636       17,636       17,636  
Core deposit intangibles     2,147       2,282       2,420       2,562       2,708  
Right of use asset     44,885       46,687       48,475       50,200       50,155  
Other belongings     179,090       160,885       125,160       148,989       93,741  
Total belongings   $ 8,557,419     $ 8,339,587     $ 8,169,833     $ 8,045,911     $ 8,077,334  
                               
LIABILITIES                              
Deposits   $ 6,054,761     $ 6,350,000     $ 6,373,400     $ 6,333,532     $ 6,421,391  
Mortgagors’ escrow deposits     70,544       57,577       79,495       51,913       67,207  
Borrowed funds     1,572,830       1,089,621       877,122       815,544       752,925  
Operating lease legal responsibility     48,330       50,346       52,292       54,155       54,239  
Other liabilities     140,235       121,231       111,711       111,139       113,476  
Total liabilities     7,886,700       7,668,775       7,494,020       7,366,283       7,409,238  
                               
STOCKHOLDERS’ EQUITY                              
Preferred inventory (5,000,000 shares approved; none issued)                              
Common inventory ($0.01 par worth; 100,000,000 shares approved)     341       341       341       341       341  
Additional paid-in capital     263,755       262,860       261,837       263,375       262,009  
Treasury inventory     (90,977 )     (88,342 )     (79,834 )     (75,293 )     (71,738 )
Retained earnings     543,894       527,217       508,973       497,889       486,418  
Accumulated different complete loss, web of taxes     (46,294 )     (31,264 )     (15,504 )     (6,684 )     (8,934 )
Total stockholders’ fairness     670,719       670,812       675,813       679,628       668,096  
                               
Total liabilities and stockholders’ fairness   $ 8,557,419     $ 8,339,587     $ 8,169,833     $ 8,045,911     $ 8,077,334  
                               
(In 1000’s)                              
Issued shares     34,088       34,088       34,088       34,088       34,088  
Outstanding shares     29,851       29,980       30,367       30,526       30,676  
Treasury shares     4,237       4,108       3,721       3,561       3,412  

  

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Unaudited)

    For the three months ended       For the 9 months ended
    September 30,   June 30,   March 31,   December 31,   September 30,       September 30,   September 30,
(In 1000’s)   2022   2022   2022   2021   2021       2022   2021
Interest-earning Assets:                                              
Mortgage loans, web   $ 5,340,694   $ 5,178,029   $ 5,152,070   $ 5,140,233   $ 5,158,213       $ 5,224,289   $ 5,148,204
Other loans, web     1,520,769     1,462,302     1,426,610     1,418,052     1,475,088         1,470,239     1,525,105
Total loans, web     6,861,463     6,640,331     6,578,680     6,558,285     6,633,301         6,694,528     6,673,309
Taxable securities:                                              
Mortgage-backed securities     568,854     594,923     580,670     595,538     590,732         581,439     534,836
Other securities     362,629     333,158     226,744     207,482     217,763         308,008     249,899
Total taxable securities     931,483     928,081     807,414     803,020     808,495         889,447     784,735
Tax-exempt securities:                                              
Other securities     67,211     67,315     57,611     50,834     50,832         64,081     50,830
Total tax-exempt securities     67,211     67,315     57,611     50,834     50,832         64,081     50,830
Interest-earning deposits and federal funds bought     118,913     104,956     126,668     215,117     115,689         116,817     179,480
Total interest-earning belongings     7,979,070     7,740,683     7,570,373     7,627,256     7,608,317         7,764,873     7,688,354
Other belongings     463,587     471,080     479,097     463,445     464,601         471,197     472,767
Total belongings   $ 8,442,657   $ 8,211,763   $ 8,049,470   $ 8,090,701   $ 8,072,918       $ 8,236,070   $ 8,161,121
                                               
Interest-bearing Liabilities:                                              
Deposits:                                              
Savings accounts   $ 154,545   $ 156,785   $ 156,592   $ 154,471   $ 153,120       $ 155,966   $ 158,708
NOW accounts     1,808,608     2,089,851     2,036,914     2,115,619     2,107,866         1,977,621     2,182,660
Money market accounts     2,136,829     2,231,743     2,253,630     2,177,928     2,107,473         2,206,973     2,019,497
Certificate of deposit accounts     1,057,733     820,476     889,847     949,784     1,037,964         923,301     1,061,293
Total on account of depositors     5,157,715     5,298,855     5,336,983     5,397,802     5,406,423         5,263,861     5,422,158
Mortgagors’ escrow accounts     68,602     97,496     71,509     84,617     68,562         79,192     75,171
Total interest-bearing deposits     5,226,317     5,396,351     5,408,492     5,482,419     5,474,985         5,343,053     5,497,329
Borrowings     1,326,770     941,023     812,018     793,802     835,874         1,028,489     942,599
Total interest-bearing liabilities     6,553,087     6,337,374     6,220,510     6,276,221     6,310,859         6,371,542     6,439,928
Noninterest-bearing demand deposits     1,050,296     1,044,553     1,001,571     976,803     933,443         1,032,319     904,522
Other liabilities     164,992     162,380     154,377     166,203     169,328         160,621     175,317
Total liabilities     7,768,375     7,544,307     7,376,458     7,419,227     7,413,630         7,564,482     7,519,767
Equity     674,282     667,456     673,012     671,474     659,288         671,588     641,354
Total liabilities and fairness   $ 8,442,657   $ 8,211,763   $ 8,049,470   $ 8,090,701   $ 8,072,918       $ 8,236,070   $ 8,161,121
                                               
Net interest-earning belongings   $ 1,425,983   $ 1,403,309   $ 1,349,863   $ 1,351,035   $ 1,297,458       $ 1,393,331   $ 1,248,426

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

    For the three months ended     For the 9 months ended
    September 30,   June 30,   March 31,   December 31,   September 30,     September 30,   September 30,
(Dollars in 1000’s)   2022   2022   2022   2021   2021     2022   2021
Interest Income:                                                          
Mortgage loans, web   $ 58,374     $ 54,775       $ 53,970       $ 54,260     $ 55,114       $ 167,119       $ 163,320  
Other loans, web     17,172       14,417         13,546         13,853       14,084         45,135         42,898  
Total loans, web     75,546       69,192         67,516         68,113       69,198         212,254         206,218  
Taxable securities:                                                          
Mortgage-backed securities     2,466       2,356         2,167         2,125       2,279         6,989         6,210  
Other securities     2,839       2,090         1,119         993       1,008         6,048         3,008  
Total taxable securities     5,305       4,446         3,286         3,118       3,287         13,037         9,218  
Tax-exempt securities:                                                          
Other securities     492       625         591         538       539         1,708         1,604  
Total tax-exempt securities     492       625         591         538       539         1,708         1,604  
Interest-earning deposits and federal funds bought     506       159         51         74       42         716         129  
Total interest-earning belongings     81,849       74,422         71,444         71,843       73,066         227,715         217,169  
Interest Expense:                                                          
Deposits:                                                          
Savings accounts   $ 53     $ 50       $ 49       $ 53     $ 61       $ 152       $ 202  
NOW accounts     3,640       1,405         793         1,021       1,227         5,838         4,432  
Money market accounts     5,280       1,952         1,275         1,428       1,683         8,507         5,843  
Certificate of deposit accounts     2,948       1,273         1,289         1,471       1,734         5,510         5,869  
Total on account of depositors     11,921       4,680         3,406         3,973       4,705         20,007         16,346  
Mortgagors’ escrow accounts     44       6         2         2               52         3  
Total interest-bearing deposits     11,965       4,686         3,408         3,975       4,705         20,059         16,349  
Borrowings     8,574       4,875         4,433         5,081       4,884         17,882         15,188  
Total interest-bearing liabilities     20,539       9,561         7,841         9,056       9,589         37,941         31,537  
Net curiosity income- tax equal   $ 61,310     $ 64,861       $ 63,603       $ 62,787     $ 63,477       $ 189,774       $ 185,632  
Included in web curiosity revenue above:                                                          
Prepayment penalties obtained on loans and securities and web of reversals and recovered curiosity from nonaccrual loans   $ 1,368     $ 2,281       $ 1,716       $ 1,497     $ 2,136       $ 5,365       $ 5,130  
Net beneficial properties/(losses) from truthful worth changes on qualifying hedges included in mortgage curiosity revenue     28       (60 )       (129 )       1,122       194         (161 )       957  
Purchase accounting changes     775       367         1,058         462       1,100         2,200         2,587  
Interest-earning Assets Yields:                                                          
Mortgage loans, web     4.37 %     4.23   %     4.19   %     4.22 %     4.27 %       4.27   %     4.23 %
Other loans, web     4.52       3.94         3.80         3.91       3.82         4.09         3.75  
Total loans, web     4.40       4.17         4.11         4.15       4.17         4.23         4.12  
Taxable securities:                                                          
Mortgage-backed securities     1.73       1.58         1.49         1.43       1.54         1.60         1.55  
Other securities     3.13       2.51         1.97         1.91       1.85         2.62         1.60  
Total taxable securities     2.28       1.92         1.63         1.55       1.63         1.95         1.57  
Tax-exempt securities: (1)                                                          
Other securities     2.93       3.71         4.10         4.23       4.24         3.55         4.21  
Total tax-exempt securities     2.93       3.71         4.10         4.23       4.24         3.55         4.21  
Interest-earning deposits and federal funds bought     1.70       0.61         0.16         0.14       0.15         0.82         0.10  
Total interest-earning belongings     4.10 %     3.85   %     3.77   %     3.77 %     3.84 %       3.91   %     3.77 %
Interest-bearing Liabilities Yields:                                                          
Deposits:                                                          
Savings accounts     0.14 %     0.13   %     0.13   %     0.14 %     0.16 %       0.13   %     0.17 %
NOW accounts     0.81       0.27         0.16         0.19       0.23         0.39         0.27  
Money market accounts     0.99       0.35         0.23         0.26       0.32         0.51         0.39  
Certificate of deposit accounts     1.11       0.62         0.58         0.62       0.67         0.80         0.74  
Total on account of depositors     0.92       0.35         0.26         0.29       0.35         0.51         0.40  
Mortgagors’ escrow accounts     0.26       0.02         0.01         0.01               0.09         0.01  
Total interest-bearing deposits     0.92       0.35         0.25         0.29       0.34         0.50         0.40  
Borrowings     2.58       2.07         2.18         2.56       2.34         2.32         2.15  
Total interest-bearing liabilities     1.25 %     0.60   %     0.50   %     0.58 %     0.61 %       0.79   %     0.65 %
                                                           
Net rate of interest unfold
(tax equal)
    2.85 %     3.25   %     3.27   %     3.19 %     3.23 %       3.12   %     3.12 %
Net curiosity margin (tax equal)     3.07 %     3.35   %     3.36   %     3.29 %     3.34 %       3.26   %     3.22 %
Ratio of interest-earning belongings to interest-bearing liabilities     1.22 X     1.22   X     1.22   X     1.22 X     1.21 X       1.22   X     1.19 X

____________
(1)
 Yields are calculated on the tax equal foundation utilizing the statutory federal revenue tax charge of 21% for the intervals offered.

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

Deposit Composition

                                  September 2022 vs.   September 2022 vs.
    September 30,   June 30,   March 31,   December 31,   September 30,   June 2022   September 2021
(Dollars in 1000’s)   2022   2022   2022   2021   2021   % Change   % Change
Noninterest bearing   $ 992,378   $ 1,081,208   $ 1,041,027   $ 967,621   $ 941,259   (8.2 ) %   5.4   %
Interest bearing:                                          
Certificate of deposit accounts     1,036,107     906,943     886,317     946,575     1,040,098   14.2       (0.4 )  
Savings accounts     150,552     154,670     158,542     156,554     152,306   (2.7 )     (1.2 )  
Money market accounts     2,113,256     2,229,993     2,362,390     2,342,003     2,152,085   (5.2 )     (1.8 )  
NOW accounts     1,762,468     1,977,186     1,925,124     1,920,779     2,135,643   (10.9 )     (17.5 )  
Total interest-bearing deposits     5,062,383     5,268,792     5,332,373     5,365,911     5,480,132   (3.9 )     (7.6 )  
Total deposits   $ 6,054,761   $ 6,350,000   $ 6,373,400   $ 6,333,532   $ 6,421,391   (4.6 ) %   (5.7 ) %


Loan Composition

                                           
                                  September 2022 vs.   September 2022 vs.
    September 30,   June 30,   March 31,   December 31,   September 30,   June 2022   September 2021
(Dollars in 1000’s)   2022     2022     2022     2021     2021     % Change   % Change
Multifamily residential   $ 2,608,192     $ 2,531,858     $ 2,500,570     $ 2,517,026     $ 2,498,980     3.0   %   4.4   %
Commercial actual property     1,914,326       1,864,507       1,764,927       1,775,629       1,745,855     2.7       9.6    
One-to-four household ― mixed-use property     560,885       561,100       563,679       571,795       579,100           (3.1 )  
One-to-four household ― residential     233,469       242,729       248,226       268,255       280,343     (3.8 )     (16.7 )  
Co-operative flats     7,015       8,130       8,248       8,316       7,804     (13.7 )     (10.1 )  
Construction     63,651       72,148       68,488       59,761       71,464     (11.8 )     (10.9 )  
Mortgage Loans     5,387,538       5,280,472       5,154,138       5,200,782       5,183,546     2.0       3.9    
                                           
Small Business Administration (1)     27,712       40,572       59,331       93,811       148,855     (31.7 )     (81.4 )  
Commercial business and different     1,532,497       1,431,417       1,387,155       1,339,273       1,294,688     7.1       18.4    
Nonmortgage loans     1,560,209       1,471,989       1,446,486       1,433,084       1,443,543     6.0       8.1    
                                           
Net unamortized premiums and unearned mortgage charges (2)     8,927       7,932       6,640       4,239       3,265     12.5       173.4    
Allowance for credit score losses     (41,268 )     (39,424 )     (37,433 )     (37,135 )     (36,363 )   4.7       13.5    
Net loans   $ 6,915,406     $ 6,720,969     $ 6,569,831     $ 6,600,970     $ 6,593,991     2.9   %   4.9   %
                                           

____________
(1) Includes $9.6 million, $22.2 million, $43.2 million, $77.4 million, and $130.8 million of PPP loans at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.
(2) Includes $5.8 million, $6.6 million, $6.9 million, $8.0 million, and $8.6 million of buy accounting unamortized low cost ensuing from the acquisition of Empire Bancorp at September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.

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

Loan Closings

    For the three months ended     For the 9 months ended
    September 30,   June 30,   March 31,   December 31,   September 30,       September 30,   September 30,
(In 1000’s)   2022   2022   2022   2021   2021     2022   2021
Multifamily residential   $ 173,980   $ 136,902   $ 98,180   $ 79,648   $ 41,850     $ 409,062   $ 167,316
Commercial actual property     77,777     164,826     45,102     64,916     48,447       287,705     103,566
One-to-four household – mixed-use property     12,383     12,228     8,498     12,440     12,823       33,109     28,670
One-to-four household – residential     4,102     4,211     9,237     5,162     2,761       17,550     65,386
Co-operative flats             24     413           24    
Construction     7,170     8,319     8,802     17,033     8,687       24,291     21,091
Mortgage Loans     275,412     326,486     169,843     179,612     114,568       771,741     386,029
                                             
Small Business Administration (1)     46     2,750         270     415       2,796     143,093
Commercial business and different     188,202     174,551     159,476     182,858     128,946       522,229     362,100
Nonmortgage Loans     188,248     177,301     159,476     183,128     129,361       525,025     505,193
                                             
Total Closings   $ 463,660   $ 503,787   $ 329,319   $ 362,740   $ 243,929     $ 1,296,766   $ 891,222

____________
(1) Includes $138.7 million of PPP closings for the 9 months ended September 30, 2021.

Weighted Average Rate on Loan Closings

    For the three months ended
    September 30,   June 30,   March 31,   December 31,   September 30,
Loan sort   2022   2022   2022   2021   2021
Mortgage loans   4.37 %   3.76 %   3.61 %   3.77 %   3.80 %
Nonmortgage loans   4.93     4.21     3.27     3.24     3.49  
Total loans   4.60 %   3.92 %   3.44 %   3.51 %   3.64 %
                               

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
ASSET QUALITY
(Unaudited)
Allowance for Credit Losses

    For the three months ended     For the 9 months ended
    September 30,   June 30,   March 31,   December 31,   September 30,     September 30,     September 30,
(Dollars in 1000’s)   2022   2022   2022   2021   2021     2022     2021
Allowance for credit score losses                                                            
Beginning balances   $ 39,424       $ 37,433       $ 37,135       $ 36,363       $ 42,670           37,135           45,153    
                                                             
Net mortgage charge-off (recoveries):                                                            
Multifamily residential             (1 )                               $ (1 )       $ 33    
Commercial actual property                                                         64    
One-to-four household – mixed-use property                             1         (123 )                   (101 )  
One-to-four household – residential     2         (2 )       (2 )       (3 )       (147 )         (2 )         (154 )  
Small Business Administration     (12 )       13         1,015         (7 )       (8 )         1,016           (27 )  
Taxi medallion             (435 )       (12 )               (1,235 )         (447 )         1,301    
Commercial business and different     300         (76 )       (66 )       (20 )       894           158           2,032    
Total     290         (501 )       935         (29 )       (619 )         724           3,148    
                                                             
Provision (profit) for mortgage losses     2,134         1,490         1,233         743         (6,926 )         4,857           (5,642 )  
                                                             
Ending steadiness   $ 41,268       $ 39,424       $ 37,433       $ 37,135       $ 36,363         $ 41,268         $ 36,363    
                                                             
Gross charge-offs   $ 324       $ 50       $ 1,036       $ 7       $ 1,019         $ 1,410         $ 5,127    
Gross recoveries     34         551         101         36         1,638           686           1,979    
                                                             
Allowance for credit score losses to gross loans     0.59   %     0.58   %     0.57   %     0.56   %     0.55   %       0.59   %       0.55   %
Net mortgage charge-offs (recoveries) to common loans     0.02         (0.03 )       0.06                 (0.04 )         0.01           0.06    


Nonperforming Assets

    September 30,   June 30,   March 31,   December 31,   September 30,
(Dollars in 1000’s)   2022   2022   2022   2021   2021
Loans 90 Days Or More Past Due and Still Accruing:                                        
Commercial actual property   $ 2,000     $     $     $     $  
Construction                             873  
Commercial business and different           100                   1,052  
Total     2,000       100                   1,925  
                                         
Nonaccrual Loans:                                        
Multifamily residential     3,414       3,414       3,414       2,431       4,192  
Commercial actual property     1,851       242       5       613       613  
One-to-four household – mixed-use property (1)     790       790       790       1,309       2,204  
One-to-four household – residential     4,655       5,055       7,387       7,725       7,807  
Construction           856                    
Small Business Administration     937       937       937       937       976  
Commercial business and different(1)     15,356       16,554       1,533       1,918       2,500  
Total     27,003       27,848       14,066       14,933       18,292  
                                         
Total Nonperforming Loans (NPLs)     29,003       27,948       14,066       14,933       20,217  
                                         
Total Nonaccrual HTM Securities     20,981       20,981                    
                                         
Total Nonperforming Assets   $ 49,984     $ 48,929     $ 14,066     $ 14,933     $ 20,217  
                                         
Nonperforming Assets to Total Assets     0.58 %     0.59 %     0.17 %     0.19 %     0.25 %
Allowance for Credit Losses to NPLs     142.3 %     141.1 %     266.1 %     248.7 %     179.9 %

____________
(1) Not included within the above evaluation are nonaccrual performing TDR one-to-four household – blended use property loans totaling $0.2 million in 3Q22 and $0.3 million every in 2Q22, 1Q22, 4Q21, and 3Q21; nonaccrual performing TDR business business loans totaling $2.9 million in 3Q22, $2.8 million in 2Q22 and 1Q22, lower than $0.1 million every in 4Q21 and 3Q21.

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 pushed by the impression of non-cash web beneficial properties and losses from truthful worth changes. These truthful worth changes relate primarily to borrowings carried at truthful worth beneath the truthful worth choice and swaps designated to guard in opposition to rising charges. As the swaps get nearer to maturity, the volatility in truthful worth changes will dissipate. In a rising rate of interest atmosphere or a steepening of the yield curve, the loss place would expertise an enchancment. In a declining rate of interest atmosphere, the motion within the curve exaggerates our mark-to-market loss place.

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 widespread share are every non-GAAP measures used on this launch. A reconciliation to essentially the most straight comparable GAAP monetary measures seems beneath in tabular type. The Company believes that these measures are helpful for each traders and administration to grasp the results of sure curiosity and noninterest gadgets and supply another view of the Company’s efficiency over time and compared to the Company’s rivals. These measures shouldn’t be seen as an alternative to web revenue. The Company believes that tangible ebook worth per widespread share is beneficial for each traders and administration as these are measures generally utilized by monetary establishments, regulators and traders to measure the capital adequacy of monetary establishments. The Company believes these measures facilitate comparability of the standard and composition of the Company’s capital over time and compared to its rivals. These measures shouldn’t be seen as an alternative to complete shareholders’ fairness.

These non-GAAP measures have inherent limitations, should not required to be uniformly utilized and should not audited. They shouldn’t be thought-about in isolation or as an alternative to evaluation of outcomes reported beneath GAAP. These non-GAAP measures might not be similar to equally titled measures reported by different firms.

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

    For the three months ended       For the 9 months ended
(Dollars in 1000’s,   September 30,   June 30,   March 31,   December 31,   September 30,       September 30,   September 30,
besides per share knowledge)   2022   2022   2022   2021   2021       2022   2021
                                                             
GAAP revenue earlier than revenue taxes   $ 32,422       $ 34,971       $ 24,640       $ 22,826       $ 34,812           $ 92,033       $ 86,452    
                                                             
Net (achieve) loss from truthful worth changes (Noninterest revenue (loss))     (5,626 )       (2,533 )       1,809         5,140         2,289             (6,350 )       7,855    
Net (achieve) loss on sale of securities (Noninterest revenue (loss))                                     10                     (113 )  
Life insurance proceeds
(Noninterest revenue (loss))
            (1,536 )                                   (1,536 )          
Net achieve on disposition of belongings (Noninterest revenue (loss))                                                         (621 )  
Net (achieve) loss from truthful worth changes on qualifying hedges
(Interest and charges on loans)
    (28 )       60         129         (1,122 )       (194 )           161         (957 )  
Net amortization of buy accounting changes (Various)     (650 )       (237 )       (924 )       (324 )       (958 )           (1,811 )       (2,165 )  
Merger (profit) expense (Various)                             (17 )       2,096                     2,579    
                                                             
Core revenue earlier than taxes     26,118         30,725         25,654         26,503         38,055             82,497         93,030    
                                                             
Provision for revenue taxes for core revenue     7,165         9,207         6,685         5,535         10,226             23,057         25,234    
                                                             
Core web revenue   $ 18,953       $ 21,518       $ 18,969       $ 20,968       $ 27,829           $ 59,440       $ 67,796    
                                                             
GAAP diluted earnings per widespread share   $ 0.76       $ 0.81       $ 0.58       $ 0.58       $ 0.81           $ 2.15       $ 2.02    
Net (achieve) loss from truthful worth changes, web of tax     (0.13 )       (0.06 )       0.04         0.13         0.05             (0.15 )       0.18    
Net loss on sale of securities, web of tax                                                            
Life insurance proceeds             (0.05 )                                   (0.05 )          
Net achieve on disposition of belongings, web of tax                                                         (0.01 )  
Net (achieve) loss from truthful worth changes on qualifying hedges, web of tax                             (0.03 )                           (0.02 )  
Net amortization of buy accounting changes, web of tax     (0.02 )       (0.01 )       (0.02 )       (0.01 )       (0.02 )           (0.04 )       (0.05 )  
Merger (profit) expense, web of tax                                     0.05                     0.06    
NYS tax change                                                         (0.02 )  
                                                             
Core diluted earnings per widespread share(1)   $ 0.62       $ 0.70       $ 0.61       $ 0.67       $ 0.88           $ 1.92       $ 2.14    
                                                             
Core web revenue, as calculated above   $ 18,953       $ 21,518       $ 18,969       $ 20,968       $ 27,829           $ 59,440       $ 67,796    
Average belongings     8,442,657         8,211,763         8,049,470         8,090,701         8,072,918             8,236,070         8,161,121    
Average fairness     674,282         667,456         673,012         671,474         659,288             671,588         641,354    
Core return on common belongings(2)     0.90   %     1.05   %     0.94   %     1.04   %     1.38   %         0.96   %     1.11   %
Core return on common fairness(2)     11.24   %     12.90   %     11.27   %     12.49   %     16.88   %         11.80   %     14.09   %

____________
(1) Core diluted earnings per widespread share might not foot on account of rounding.
(2) Ratios are calculated on an annualized foundation.

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

    For the three months ended       For the 9 months ended  
    September 30,   June 30,   March 31,   December 31,   September 30,       September 30,   September 30,  
(Dollars in 1000’s)   2022     2022     2022     2021     2021         2022     2021    
                                                 
GAAP Net curiosity revenue   $ 61,206     $ 64,730     $ 63,479     $ 62,674     $ 63,364         $ 189,415     $ 185,295    
Net (achieve) loss from truthful worth changes on qualifying hedges     (28 )     60       129       (1,122 )     (194 )         161       (957 )  
Net amortization of buy accounting changes     (775 )     (367 )     (1,058 )     (462 )     (1,100 )         (2,200 )     (2,587 )  
Core Net curiosity revenue   $ 60,403     $ 64,423     $ 62,550     $ 61,090     $ 62,070         $ 187,376     $ 181,751    
                                                 
GAAP Noninterest revenue (loss)   $ 8,995     $ 7,353     $ 1,313     $ (280 )   $ 866         $ 17,661     $ 3,967    
Net (achieve) loss from truthful worth changes     (5,626 )     (2,533 )     1,809       5,140       2,289           (6,350 )     7,855    
Net achieve (loss) on sale of securities                             10                 (113 )  
Life insurance proceeds           (1,536 )                           (1,536 )        
Net achieve on sale of belongings                                             (621 )  
Core Noninterest revenue   $ 3,369     $ 3,284     $ 3,122     $ 4,860     $ 3,165         $ 9,775     $ 11,088    
                                                 
GAAP Noninterest expense   $ 35,634     $ 35,522     $ 38,794     $ 38,807     $ 36,345         $ 109,950     $ 108,515    
Net amortization of buy accounting changes     (125 )     (130 )     (134 )     (138 )     (142 )         (389 )     (422 )  
Merger expense (profit)                       17       (2,096 )               (2,579 )  
Core Noninterest expense   $ 35,509     $ 35,392     $ 38,660     $ 38,686     $ 34,107         $ 109,561     $ 105,514    
                                                 
Net curiosity revenue   $ 61,206     $ 64,730     $ 63,479     $ 62,674     $ 63,364         $ 189,415     $ 185,295    
Noninterest revenue (loss)     8,995       7,353       1,313       (280 )     866           17,661       3,967    
Noninterest expense     (35,634 )     (35,522 )     (38,794 )     (38,807 )     (36,345 )         (109,950 )     (108,515 )  
Pre-provision pre-tax web income   $ 34,567     $ 36,561     $ 25,998     $ 23,587     $ 27,885         $ 97,126     $ 80,747    
                                                 
Core:                                                
Net curiosity revenue   $ 60,403     $ 64,423     $ 62,550     $ 61,090     $ 62,070         $ 187,376     $ 181,751    
Noninterest revenue     3,369       3,284       3,122       4,860       3,165           9,775       11,088    
Noninterest expense     (35,509 )     (35,392 )     (38,660 )     (38,686 )     (34,107 )         (109,561 )     (105,514 )  
Pre-provision pre-tax web income   $ 28,263     $ 32,315     $ 27,012     $ 27,264     $ 31,128         $ 87,590     $ 87,325    
Efficiency Ratio     55.7   %   52.3   %   58.9   %   58.7   %   52.3   %       55.6   %   54.7   %

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

  For the three months ended     For the 9 months ended  
  September 30,   June 30,   March 31,   December 31,   September 30,     September 30,   September 30,  
(Dollars in 1000’s) 2022   2022   2022   2021   2021     2022     2021    
GAAP web curiosity revenue $ 61,206       $ 64,730       $ 63,479       $ 62,674       $ 63,364         $ 189,415     $ 185,295    
Net (achieve) loss from truthful worth changes on qualifying hedges   (28 )       60         129         (1,122 )       (194 )         161       (957 )  
Net amortization of buy accounting changes   (775 )       (367 )       (1,058 )       (462 )       (1,100 )         (2,200 )     (2,587 )  
Tax equal adjustment   104         131         124         113         113           359       337    
Core web curiosity revenue FTE $ 60,507       $ 64,554       $ 62,674       $ 61,203       $ 62,183         $ 187,735     $ 182,088    
                                                       
Total common interest-earning belongings (1) $ 7,984,558       $ 7,746,640       $ 7,577,053       $ 7,634,601       $ 7,616,332         $ 7,770,910     $ 7,697,229    
Core web curiosity margin FTE   3.03   %     3.33   %     3.31   %     3.21   %     3.27   %       3.22   %   3.15   %
                                                       
GAAP curiosity revenue on complete loans, web $ 75,546       $ 69,192       $ 67,516       $ 68,113       $ 69,198         $ 212,254     $ 206,218    
Net (achieve) loss from truthful worth changes on qualifying hedges   (28 )       60         129         (1,122 )       (194 )         161       (957 )  
Net amortization of buy accounting changes   (783 )       (357 )       (1,117 )       (535 )       (1,126 )         (2,256 )     (2,478 )  
Core curiosity revenue on complete loans, web $ 74,735       $ 68,895       $ 66,528       $ 66,456       $ 67,878         $ 210,159     $ 202,783    
                                                       
Average complete loans, web (1) $ 6,867,758       $ 6,647,131       $ 6,586,253       $ 6,566,654       $ 6,642,434         $ 6,701,413     $ 6,683,412    
Core yield on complete loans   4.35   %     4.15   %     4.04   %     4.05   %     4.09   %       4.18   %   4.05   %

____________
(1) Excludes buy accounting common balances for all intervals offered.

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

    September 30,   June 30,   March 31,   December 31,   September 30,
(Dollars in 1000’s)   2022   2022   2022   2021   2021
Total Equity   $ 670,719       $ 670,812       $ 675,813       $ 679,628       $ 668,096    
Less:                                        
Goodwill     (17,636 )       (17,636 )       (17,636 )       (17,636 )       (17,636 )  
Core deposit Intangibles     (2,147 )       (2,282 )       (2,420 )       (2,562 )       (2,708 )  
Intangible deferred tax liabilities                     328         328         287    
Tangible Stockholders’ Common Equity   $ 650,936       $ 650,894       $ 656,085       $ 659,758       $ 648,039    
                                         
Total Assets   $ 8,557,419       $ 8,339,587       $ 8,169,833       $ 8,045,911       $ 8,077,334    
Less:                                        
Goodwill     (17,636 )       (17,636 )       (17,636 )       (17,636 )       (17,636 )  
Core deposit Intangibles     (2,147 )       (2,282 )       (2,420 )       (2,562 )       (2,708 )  
Intangible deferred tax liabilities                     328         328         287    
Tangible Assets   $ 8,537,636       $ 8,319,669       $ 8,150,105       $ 8,026,041       $ 8,057,277    
                                         
Tangible Stockholders’ Common Equity to Tangible Assets     7.62   %     7.82   %     8.05   %     8.22   %     8.04   %
                                         



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