Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2021

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

001-33013

(Commission File Number)

Delaware

(State or Other Jurisdiction of Incorporation)

11-3209278

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

220 RXR Plaza, Uniondale, NY 11556

(Address of principal executive offices)

(718) 961-5400

(Registrant's telephone number, including area code)

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

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

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

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

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

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIC	The Nasdaq Stock Market LLC

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

Emerging growth company ☐

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

Item 2.02. Results of Operations and Financial Condition.

On October 26, 2021, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated October 26, 2021

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

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

usa
	FLUSHING FINANCIAL CORPORATION


Date: October 26, 2021	By:	/s/ SUSAN K. CULLEN
		Susan K. Cullen
		Senior Executive Vice President and Chief Financial Officer

Exhibit 99.1

	● ●
	John R. Buran, President and CEO Commentary
Flushing Financial Corporation Reports 3Q21 GAAP EPS of $0.81 and Record Core EPS of $0.88 Record Net Interest Income, Loan Pipeline, and Core EPS
UNIONDALE, N.Y., October 26, 2021 (GLOBE NEWSWIRE) - The Company reported third quarter 2021 GAAP EPS of $0.81, up 62.0% YoY, ROAA of 1.26% and ROAE of 15.42%. For the period, Core EPS of $0.88 increased 57.1% YoY with ROAA of 1.38% and ROAE of 16.88%. The strong results were from the successful implementation of our business strategy resulting in the sixth consecutive quarter of record net interest income, a record loan pipeline, and the second consecutive quarter of record core earnings.
“Loans, excluding SBA Payment Protection Program (“PPP”), were flat QoQ but increased 12% YoY. The Company’s loan pipeline increased 35% YoY and 23% QoQ to record levels as the metro New York City economy continues to normalize. Additionally, there have been eight announced or recently closed bank mergers in the Long Island market. The market has $328 billion of deposits and 18% or $60 billion involve a merger participant. As a leading community bank in this market, Flushing Bank is poised to benefit from merger disruption. The combination of an improving economy, broad based and record loan pipelines, and merger disruption should lead to positive loan growth into 2022.” - John R. Buran, President and CEO
Sixth Consecutive Quarter of Record Net Interest Income; Favorable Outlook. Net interest income of $63.4 million increased 27% YoY and 4% QoQ. NIM expanded 20 bps to 3.34% from 3.14% in 2Q21, while Core NIM increased by 13 bps to 3.27% during the same period. NIM expansion was the result of cost of funds declining 4 bps, while asset yields increased 15 bps, with 8 bps due to the change in hedge fair values, increased purchase accounting accretion, and net prepayment penalty income. The funding mix improved with core deposits totaling 84% of average deposits and average borrowings declined 37% YoY. Weighted average rate on loan closings (ex PPP) rose 13 bps QoQ and the steeper yield curve should have a positive impact on net interest income over time. Capital Target Achieved; Share Repurchase Activity Resumes. Following the closing of the Empire acquisition approximately one year ago, the Company announced the goal of a TCE ratio of 8% or better by the end of 2021. This target was achieved during 3Q21 even as the Company repurchased 285,643 shares of common stock at an average price of $22.42 per share. Our capital priorities remain to 1) profitabily grow the balance sheet, 2) return dividends to shareholders, and 3) opportunistically repurchase shares.

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

Key Financial Metrics¹


	3Q21	2Q21	1Q21	4Q20	3Q20
GAAP:
EPS	$0.81	$0.61	$0.60	$0.11	$0.50
ROAA (%)	1.26	0.93	0.93	0.18	0.81
ROAE (%)	15.42	11.95	12.29	2.27	9.94
NIM FTE (%)	3.34	3.14	3.18	3.08	3.00
Core:
EPS	$0.88	$0.73	$0.54	$0.58	$0.56
ROAA (%)	1.38	1.11	0.83	0.92	0.91
ROAE (%)	16.88	14.27	10.96	11.67	11.22
Core NIM FTE (%)	3.27	3.14	3.06	3.03	2.98
Efficiency Ratio (%)	52.3	53.4	58.6	57.6	55.4
Credit Quality:
NPAs/Loans&REO (%)	0.31	0.26	0.31	0.31	0.42
LLRs/Loans (%)	0.55	0.64	0.67	0.67	0.65
LLRs/NPLs (%)	179.86	242.55	212.87	214.27	154.66
NCOs/Avg Loans (%)	(0.04)	0.05	0.17	0.04	0.06
Balance Sheet:
Avg Loans ($B)	$6.6	$6.7	$6.7	$6.4	$5.9
Avg Dep ($B)	$6.4	$6.5	$6.3	$5.5	$5.0
Book Value/Share	$21.78	$21.16	$20.65	$20.11	$20.78
Tangible BV/Share	$21.13	$20.51	$19.99	$19.45	$20.22
TCE/TA (%)	8.04	7.80	7.60	7.52	8.10

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

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

3Q21 Highlights

●

Record net interest income up 3.8% QoQ and 26.9% YoY to $63.4 million, due to a decrease in funding costs and an increase in asset yields from an increase in hedge fair values, purchase accounting accretion, and net prepayment penalty income; core net interest income was up 1.5% QoQ and 24.9% YoY to $62.1 million

●

Net interest margin FTE increased 20 bps QoQ and 34 bps YoY to 3.34%, and core net interest margin FTE was up 13 bps QoQ and 29 bps YoY to 3.27%; Core NIM expansion QoQ primarily was due to an improvement in funding costs and a change in balance sheet mix

●

Period end loans, excluding PPP, were flat QoQ but increased 11.6% YoY; loan closings were $243.9 million in 3Q21, down 24.8% QoQ but up 56.8% YoY

●

Average deposits declined 1.6% QoQ, but increased 28.2% YoY to $6.4 billion, with core deposits 84% of total average deposits

●

Loan pipeline increased 34.7% YoY to a record $530.7 million

●

Benefit for credit losses was $6.9 million due to a better economic outlook, strong LTVs, and improving credit metrics; net recoveries were $0.6 million or 4 bps of average loans in 3Q21

●

NPAs increased 14.9% QoQ to $20.2 million, but down 18.6% YoY; criticized and classified assets were down 0.4% QoQ to $68.9 million (representing 1.04% of loans)

●

Tangible Common Equity to Tangible Assets improved to 8.04% from 7.80% in 2Q21

●

Repurchased 285,643 shares at an average price of $22.42; dividends and share repurchases were 51.2% of net income in 3Q21

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

Income Statement Highlights


						Y/Y		Q/Q
($000s, except EPS)	3Q21	2Q21	1Q21	4Q20	3Q20	Change		Change

Net Interest Income	$63,364	$61,039	$60,892	$55,732	$49,924	26.9	%	3.8	%
(Benefit) Provision for Credit Losses	(6,927)	(1,598)	2,820	3,862	2,470	(380.4)		333.5
Non-interest Income (Loss)	866	(3,210)	6,311	(1,181)	1,351	(35.9)		(127.0)
Non-interest Expense	36,345	34,011	38,159	46,811	29,985	21.2		6.9
Income Before Income Taxes	34,812	25,416	26,224	3,878	18,820	85.0		37.0
Provision for Income Taxes	9,399	6,158	7,185	417	4,489	109.4		52.6
Net Income	$25,413	$19,258	$19,039	$3,461	$14,331	77.3		32.0
Diluted EPS	$0.81	$0.61	$0.60	$0.11	$0.50	62.0		32.8
Avg. Diluted Shares (000s)	31,567	31,677	31,604	30,603	28,874	9.3		(0.3)

Core Net Income¹	$27,829	$22,994	$16,973	$17,784	$16,168	72.1		21.0
Core EPS¹	$0.88	$0.73	$0.54	$0.58	$0.56	57.1		20.5

¹ See Reconciliation of GAAP Earnings and Core Earnings

Net interest income totaled $63.4 million in 3Q21 (an increase of 26.9% YoY and 3.8% QoQ), $61.0 million in 2Q21, $60.9 million in 1Q21, $55.7 million in 4Q20, and $49.9 million in 3Q20.

●

Net interest margin, FTE (“NIM”) of 3.34%, increased 34 bps YoY and 20 bps QoQ; PPP loans caused a 2 bps positive impact on the NIM in 3Q21, neutral impact in 2Q21, and a drag of 4 bps in 1Q21, 3 bps in 4Q20, and 2 bps in 3Q20

●

Prepayment penalty income from loans and securities, net reversals and recoveries of interest from non-accrual loans, net gains and losses from fair value adjustments on qualifying hedges, and purchase accounting accretion totaled $3.4 million or 19 bps to the NIM compared to $1.9 million (10 bps) in 2Q21, $3.3 million (17 bps) in 1Q21, $2.1 million (11 bps) in 4Q20, and $1.7 million (11 bps) in 3Q20, respectively

●

Excluding the items in the previous bullet, net interest margin was 3.15% in 3Q21 compared to 3.04% in 2Q21, 3.01% in 1Q21, 2.97% in 4Q20, and 2.89% in 3Q20, or an increase of 26 bps YoY and 11 bps QoQ

●

Net PPP loan fees were $1.3 million in 3Q21, $1.2 million in 2Q21, $0.5 million in 1Q21, $0.4 million in 4Q20, and $0.2 million in 3Q20

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

The Company recorded a benefit for credit losses of $6.9 million in 3Q21 compared to $1.6 million in 2Q21, and provisions for credit losses of $2.8 million in 1Q21, $3.9 million in 4Q20, and $2.5 million in 3Q20.

●

3Q21 benefit for credit losses ($0.16 per share, net of tax) was driven by the improving economic outlook supported by the low LTVs in the real estate portfolio and low inherent risk in the total portfolio

●

Net charge-offs (recoveries) were $(0.6) million in 3Q21 ((4) bps of average loans), $0.9 million in 2Q21 (5 bps), $2.9 million in 1Q21 (17 bps), $0.6 million in 4Q20 (4 bps), and $0.8 million in 3Q20 (6 bps)

Non-interest income (loss) was $0.9 million in 3Q21, $(3.2) million in 2Q21, $6.3 million in 1Q21, $(1.2) million in 4Q20 and $1.4 million in in 3Q20.

●

Non-interest income included net gains (losses) from fair value adjustments of $(2.3) million in 3Q21 $(0.05) per share, net of tax, $(6.5) million $(0.15) per share, net of tax in 2Q21, $1.0 million $0.02 per share, net of tax in 1Q21, $(4.1) million $(0.11) per share, net of tax in 4Q20, and $(2.2) million $(0.06) per share, net of tax in 3Q20

●

Absent all above items and other immaterial adjustments, core non-interest income was $3.2 million in 3Q21, down 11.5% YoY, and 1.6% QoQ

Non-interest expense totaled $36.3 million in 3Q21 (an increase of 21.2% YoY and 6.9% QoQ), compared to $34.0 million in 2Q21, $38.2 million in 1Q21, $46.8 million in 4Q20, and $30.0 million in 3Q20.

●

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

●

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

●

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

●

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

●

3Q20 non-interest expense includes merger charges of $0.4 million ($0.01 per share, net of tax)

●

Excluding the above items and other immaterial adjustments, core operating expenses were $34.1 million in 3Q21, up 15.4% YoY, but down 0.7% QoQ

●

The efficiency ratio was 52.3% in 3Q21, 53.4% in 2Q21, 58.6% in 1Q21, 57.6% in 4Q20, and 55.4% in 3Q20

The provision for income taxes was $9.4 million in 3Q21, compared to $6.2 million in 2Q21, $7.2 million in 1Q21, $0.4 million in 4Q20, and $4.5 million in 3Q20.

●

The effective tax rate was 27.0% in 3Q21, 24.2% in 2Q21, 27.4% in 1Q21, 10.8% in 4Q20, and 23.9% in 3Q20

●

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

Balance Sheet, Credit Quality, and Capital Highlights


						Y/Y		Q/Q
($000s, except per share data)	3Q21	2Q21	1Q21	4Q20	3Q20	Change		Change
Average Loans And Deposits
Loans	$6,633	$6,687	$6,700	$6,376	$5,904	12.3	%	(0.8)	%
Deposits	6,408	6,511	6,285	5,515	4,999	28.2		(1.6)

Credit Quality
Nonperforming Loans	$20,217	$17,592	$21,186	$21,073	$24,792	(18.5)	%	14.9	%
Nonperforming Assets	20,217	17,592	21,221	21,108	24,827	(18.6)		14.9
Criticized and Classified Assets	68,913	69,161	63,130	71,691	42,181	63.4		(0.4)
Allowance for Credit Losses/Loans (%)	0.55	0.64	0.67	0.67	0.65	(10)	bps	(9)	bps

Capital
Book Value/Share	$21.78	$21.16	$20.65	$20.11	$20.78	4.8	%	2.9	%
Tangible Book Value/Share	21.13	20.51	19.99	19.45	20.22	4.5		3.0
Tang. Common Equity/Tang. Assets (%)	8.04	7.80	7.60	7.52	8.10	(6)	bps	24	bps
Leverage Ratio (%)	8.83	8.50	8.44	8.38	9.03	(20)		33

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

Average loans were $6.6 billion, an increase of 12.4% YoY, but a decline of 0.8% QoQ.

●

Total loan closings were $243.9 million in 3Q21, $324.4 million in 2Q21, $322.9 million in 1Q21, $316.0 million in 4Q20, and $155.6 million in 3Q20

●

The loan pipeline increased to a record $530.7 million at September 30, 2021, up 34.7% YoY and 22.7% QoQ

●

PPP loans were $130.8 million at 3Q21, $197.3 million at 2Q21, $251.0 million at 1Q21, $151.9 million at 4Q20, and $111.6 million at 3Q20; forgiven PPP loans were $66.5 million in 3Q21, $69.2 million in 2Q21 and $24.1 million in 1Q21; unamortized net PPP fees were $3.2 million at September 30, 2021

●

Period end loans, excluding PPP loans, totaled $6.5 billion, up 11.6% YoY and flat QoQ

Average Deposits totaled $6.4 billion, increasing 28.2% YoY, but down 1.6% QoQ.

●

Average core deposits (non-CD deposits) increased to 83.8% of total average deposits (including escrow deposits) in 3Q21, compared to 77.9% a year ago

●

Average non-interest bearing deposits increased 58.3% YoY and 1.1% QoQ and comprised 14.6% of total average deposits (including escrow deposits) in 3Q21 compared to 11.8% a year ago

Credit Quality; Non-performing loans totaled $20.2 million in 3Q21, $17.6 million in 2Q21, $21.2 million in 1Q21, $21.1 million in 4Q20 and $24.8 million in 3Q20.

●

Non-performing assets totaled $20.2 million, down 18.6% YoY, but up 14.9% QoQ

●

Criticized and classified assets totaled $68.9 million in 3Q21 (104 bps of loans), $69.2 million at 2Q21 (103 bps), $63.1 million at 1Q21 (94 bps), $71.7 million at 4Q20 (107 bps), and $42.2 million at 3Q20 (71 bps)

●

Loans classified as troubled debt restructured (TDR) totaled $13.1 million compared to $15.5 million in 2Q21 and $5.1 million a year ago

●

Active COVID-19 forbearances totaled 38 loans with a principal balance of $162.0 million at September 30, 2021, with $121.8 million making interest payments and only $40.2 million (0.6% of loans) with full payment deferrals; over 57% of the forbearances are scheduled to exit forbearance by year end 2021

●

Over 87% of gross loans are collateralized by real estate and these loans have an average loan-to-value ratio of <38% as of September 30, 2021

●

Allowance for credit losses were 0.55% of loans at 3Q21 compared to 0.64% at 2Q21 and 0.65% a year ago

●

Allowance for credit losses were 179.9% of nonperforming loans at 3Q21 compared to 154.7% a year ago

Capital; Book value per common share increased to $21.78 at 3Q21 compared to $21.16 at 2Q21, $20.65 at 1Q21, $20.11 at 4Q20, and $20.78 at 3Q20; tangible book value per common share, a non-GAAP measure, was $21.13 at 3Q21, $20.51 at 2Q21, $19.99 at 1Q21, $19.45 in 4Q20, and $20.22 in 3Q20.

●

The Company paid a dividend of $0.21 per share in 3Q21

●

285,643 shares were repurchased at an average price of $22.42 in 3Q21

●

As of the end of 3Q21, 999,163 shares remain subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit

●

Tangible common equity to tangible assets was 8.04% at 3Q21 compared to 8.10% a year ago

●

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

●

The leverage ratio was 8.83% in 3Q21 versus 9.03% in 3Q20

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

Conference Call Information And Fourth Quarter Earnings Release Date

Conference Call Information:

●

John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, will host a conference call on Wednesday, October 27, 2021, at 9:30 AM (ET) to discuss the Company’s third quarter 2021 results and strategy.

●

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

●

Webcast: https://services.choruscall.com/links/ffic211027.html

●

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

●

Replay Access Code: 10151674

●

The conference call will be simultaneously webcast and archived through October 27, 2022

Fourth Quarter 2021 Earnings Release Date:

The Company plans to release Fourth Quarter 2021 and full year 2021 financial results after the market close on January 27, 2022; followed by a conference call at 9:30 AM (ET) on January 28, 2022.

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

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq: FFIC) is the holding company for Flushing Bank®, a New York State-chartered commercial bank insured by the Federal Deposit Insurance Corporation. The Bank serves consumers, businesses, professionals, corporate clients, and public entities by offering a full complement of deposit, loan, equipment finance, and cash management services through its banking offices located in Queens, Brooklyn, Manhattan, and on Long Island. As a leader in real estate lending, the Bank’s experienced lending team creates mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. Flushing Bank is an Equal Housing Lender. The Bank also operates an online banking division consisting of iGObanking.com®, which offers competitively priced deposit products to consumers nationwide, and BankPurely®, an eco-friendly, healthier lifestyle community brand.

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

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.

Tag: FF

- Statistical Tables Follow -

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)


	At or for the three months ended															At or for the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share data)	2021			2021			2021			2020			2020			2021			2020
Performance Ratios ⁽¹⁾
Return on average assets		1.26	%		0.93	%		0.93	%		0.18	%		0.81	%		1.04	%		0.58	%
Return on average equity		15.42			11.95			12.29			2.27			9.94			13.24			7.30
Yield on average interest-earning assets ⁽²⁾		3.84			3.69			3.77			3.82			3.84			3.77			3.88
Cost of average interest-bearing liabilities		0.61			0.66			0.69			0.86			0.98			0.65			1.27
Cost of funds		0.53			0.57			0.61			0.77			0.89			0.57			1.16
Net interest rate spread during period⁽²⁾		3.23			3.03			3.08			2.96			2.86			3.12			2.61
Net interest margin ⁽²⁾		3.34			3.14			3.18			3.08			3.00			3.22			2.77
Non-interest expense to average assets		1.80			1.65			1.87			2.43			1.69			1.77			1.70
Efficiency ratio ⁽³⁾		52.28			53.38			58.58			57.56			55.37			54.72			59.12
Average interest-earning assets to average interest-bearing liabilities		1.21	X		1.19	X		1.18	X		1.17	X		1.16	X		1.19	X		1.15	X

Average Balances
Total loans, net	$	6,633,301		$	6,686,888		$	6,700,476		$	6,375,516		$	5,904,051		$	6,673,309		$	5,881,858
Total interest-earning assets		7,608,317			7,790,174			7,667,217			7,243,472			6,675,896			7,688,354			6,734,979
Total assets		8,072,918			8,263,553			8,147,714			7,705,407			7,083,028			8,161,121			7,131,850
Total due to depositors		5,406,423			5,495,936			5,363,647			4,708,760			4,353,560			5,422,158			4,442,202
Total interest-bearing liabilities		6,310,859			6,532,891			6,477,871			6,169,574			5,731,899			6,439,928			5,865,045
Stockholders' equity		659,288			644,690			619,647			609,463			576,512			641,354			570,198

Per Share Data
Book value per common share ⁽⁴⁾	$	21.78		$	21.16		$	20.65		$	20.11		$	20.78		$	21.78		$	20.78
Tangible book value per common share ⁽⁵⁾	$	21.13		$	20.51		$	19.99		$	19.45		$	20.22		$	21.13		$	20.22

Stockholders' Equity
Stockholders' equity	$	668,096		$	655,167		$	639,201		$	618,997		$	586,406		$	668,096		$	586,406
Tangible stockholders' equity		648,039			634,959			618,839			598,476			570,571			648,039			570,571

Consolidated Regulatory Capital Ratios
Tier 1 capital	$	711,276		$	697,591		$	679,343		$	662,987		$	630,380		$	711,276		$	630,380
Common equity Tier 1 capital		661,340			649,367			636,071			621,247			593,344			661,340			593,344
Total risk-based capital		832,255			823,494			806,922			794,034			740,499			832,255			740,499
Risk Weighted Assets		6,194,207			6,344,076			6,281,136			6,287,598			5,381,938			6,194,207			5,381,938

Tier 1 leverage capital (well capitalized = 5%)		8.83	%		8.50	%		8.44	%		8.38	%		9.03	%		8.83	%		9.03	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)		10.68			10.24			10.13			9.88			11.02			10.68			11.02
Tier 1 risk-based capital (well capitalized = 8.0%)		11.48			11.00			10.82			10.54			11.71			11.48			11.71
Total risk-based capital (well capitalized = 10.0%)		13.44			12.98			12.85			12.63			13.76			13.44			13.76

Capital Ratios
Average equity to average assets		8.17	%		7.80	%		7.61	%		7.91	%		8.14	%		7.86	%		8.00	%
Equity to total assets		8.27			8.03			7.83			7.76			8.30			8.27			8.30
Tangible common equity to tangible assets ⁽⁶⁾		8.04			7.80			7.60			7.52			8.10			8.04			8.10

Asset Quality
Non-accrual loans ⁽⁷⁾	$	18,292		$	17,391		$	18,604		$	18,325		$	24,792		$	18,292		$	24,792
Non-performing loans		20,217			17,592			21,186			21,073			24,792			20,217			24,792
Non-performing assets		20,217			17,592			21,221			21,108			24,827			20,217			24,827
Net charge-offs (recoveries)		(619)			902			2,865			646			837			3,148			2,993

Asset Quality Ratios
Non-performing loans to gross loans		0.31	%		0.26	%		0.31	%		0.31	%		0.42	%		0.31	%		0.42	%
Non-performing assets to total assets		0.25			0.22			0.26			0.26			0.35			0.25			0.35
Allowance for loan losses to gross loans		0.55			0.64			0.67			0.67			0.65			0.55			0.65
Allowance for loan losses to non-performing assets		179.86			242.55			212.52			213.91			154.44			179.86			154.44
Allowance for loan losses to non-performing loans		179.86			242.55			212.87			214.27			154.66			179.86			154.66
Net charge-offs (recoveries) to average loans		(0.04)			0.05			0.17			0.04			0.06			0.06			0.07

Full-service customer facilities		24			25			25			25			20			24			20

(See footnotes on next page)

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

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

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

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

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

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

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

⁽⁷⁾ Excludes performing non-accrual TDR loans.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the three months ended										For the nine months ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(In thousands, except per share data)	2021		2021		2021		2020		2020		2021		2020
Interest and Dividend Income
Interest and fees on loans	$	69,198	$	67,999	$	69,021	$	66,120	$	60,367	$	206,218	$	182,033
Interest and dividends on securities:
Interest		3,706		3,685		3,072		2,813		3,525		10,463		12,963
Dividends		7		7		8		8		9		22		35
Other interest income		42		51		36		30		13		129		325
Total interest and dividend income		72,953		71,742		72,137		68,971		63,914		216,832		195,356

Interest Expense
Deposits		4,705		5,539		6,105		6,470		7,093		16,349		35,842
Other interest expense		4,884		5,164		5,140		6,769		6,897		15,188		20,047
Total interest expense		9,589		10,703		11,245		13,239		13,990		31,537		55,889

Net Interest Income		63,364		61,039		60,892		55,732		49,924		185,295		139,467
(Benefit) provision for credit losses		(6,927)		(1,598)		2,820		3,862		2,470		(5,705)		19,267
Net Interest Income After (Benefit) Provision for Credit Losses		70,291		62,637		58,072		51,870		47,454		191,000		120,200

Non-interest Income (Loss)
Banking services fee income		865		1,233		2,725		1,442		1,316		4,823		3,058
Net gain (loss) on sale of securities		(10)		123		—		(610)		—		113		(91)
Net gain on sale of loans		131		127		31		6		—		289		42
Net gain on disposition of assets		—		—		621		—		—		621		—
Net gain (loss) from fair value adjustments		(2,289)		(6,548)		982		(4,129)		(2,225)		(7,855)		1,987
Federal Home Loan Bank of New York stock dividends		491		500		689		734		874		1,680		2,719
Life insurance proceeds		—		—		—		—		—		—		659
Bank owned life insurance		1,015		1,009		997		1,016		923		3,021		2,798
Other income		663		346		266		360		463		1,275		1,052
Total non-interest income (loss)		866		(3,210)		6,311		(1,181)		1,351		3,967		12,224

Non-interest Expense
Salaries and employee benefits		20,544		19,879		22,664		22,089		17,335		63,087		52,139
Occupancy and equipment		3,534		3,522		3,367		3,446		3,021		10,423		8,688
Professional services		1,899		1,988		2,400		2,463		2,064		6,287		6,911
FDIC deposit insurance		618		729		1,213		562		727		2,560		2,114
Data processing		1,759		1,419		2,109		3,411		1,668		5,287		5,175
Depreciation and amortization		1,627		1,638		1,639		1,579		1,542		4,904		4,633
Other real estate owned/foreclosure (recoveries) expense		182		22		(10)		95		240		194		121
Prepayment penalty on borrowings		—		—		—		7,834		—		—		—
Other operating expenses		6,182		4,814		4,777		5,332		3,388		15,773		11,339
Total non-interest expense		36,345		34,011		38,159		46,811		29,985		108,515		91,120

Income Before Income Taxes		34,812		25,416		26,224		3,878		18,820		86,452		41,304

Provision (benefit) for Income Taxes
Federal		6,410		4,857		5,071		533		3,359		16,338		8,655
State and local		2,989		1,301		2,114		(116)		1,130		6,404		1,436
Total taxes		9,399		6,158		7,185		417		4,489		22,742		10,091

Net Income	$	25,413	$	19,258	$	19,039	$	3,461	$	14,331	$	63,710	$	31,213

Basic earnings per common share	$	0.81	$	0.61	$	0.60	$	0.11	$	0.50	$	2.02	$	1.08
Diluted earnings per common share	$	0.81	$	0.61	$	0.60	$	0.11	$	0.50	$	2.02	$	1.08
Dividends per common share	$	0.21	$	0.21	$	0.21	$	0.21	$	0.21	$	0.63	$	0.63

Basic average shares		31,567		31,677		31,604		30,603		28,874		31,616		28,865
Diluted average shares		31,567		31,677		31,604		30,603		28,874		31,616		28,865

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)


	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands)	2021		2021		2021		2020		2020
ASSETS
Cash and due from banks	$	178,598	$	145,971	$	174,420	$	157,388	$	75,560
Securities held-to-maturity:
Mortgage-backed securities		7,899		7,904		7,909		7,914		7,919
Other securities		49,989		49,986		49,912		49,918		50,252
Securities available for sale:
Mortgage-backed securities		584,145		596,661		518,781		404,460		386,235
Other securities		212,654		224,784		242,440		243,514		234,721
Loans		6,630,354		6,718,806		6,745,316		6,704,674		5,941,398
Allowance for loan losses		(36,363)		(42,670)		(45,099)		(45,153)		(38,343)
Net loans		6,593,991		6,676,136		6,700,217		6,659,521		5,903,055
Interest and dividends receivable		40,912		43,803		44,941		44,041		36,068
Bank premises and equipment, net		24,018		26,438		27,498		28,179		25,766
Federal Home Loan Bank of New York stock		36,158		41,630		41,498		43,439		57,119
Bank owned life insurance		184,730		183,715		182,707		181,710		158,701
Goodwill		17,636		17,636		17,636		17,636		16,127
Core deposit intangibles		2,708		2,859		3,013		3,172		—
Right of use asset		50,155		51,972		53,802		50,743		42,326
Other assets		93,741		89,850		94,410		84,759		69,207
Total assets	$	8,077,334	$	8,159,345	$	8,159,184	$	7,976,394	$	7,063,056

LIABILITIES
Deposits	$	6,421,391	$	6,298,790	$	6,326,577	$	6,090,733	$	4,906,359
Mortgagors' escrow deposits		67,207		58,230		74,348		45,622		57,136
Borrowed funds		752,925		971,827		948,920		1,020,895		1,323,975
Operating lease liability		54,239		56,151		58,080		59,100		49,737
Other liabilities		113,476		119,180		112,058		141,047		139,443
Total liabilities		7,409,238		7,504,178		7,519,983		7,357,397		6,476,650

STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized; none issued)		—		—		—		—		—
Common stock ($0.01 par value; 100,000,000 shares authorized)		341		341		341		341		315
Additional paid-in capital		262,009		260,958		260,019		261,533		227,877
Treasury stock		(71,738)		(65,335)		(65,479)		(69,400)		(69,409)
Retained earnings		486,418		467,620		455,023		442,789		445,931
Accumulated other comprehensive loss, net of taxes		(8,934)		(8,417)		(10,703)		(16,266)		(18,308)
Total stockholders' equity		668,096		655,167		639,201		618,997		586,406

Total liabilities and stockholders' equity	$	8,077,334	$	8,159,345	$	8,159,184	$	7,976,394	$	7,063,056

(In thousands)
Issued shares		34,088		34,088		34,088		34,088		31,531
Outstanding shares		30,676		30,962		30,954		30,776		28,218
Treasury shares		3,412		3,126		3,133		3,312		3,312

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 nine months ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(In thousands)	2021		2021		2021		2020		2020		2021		2020
Interest-earning Assets:
Mortgage loans, net	$	5,158,213	$	5,130,400	$	5,155,975	$	5,010,097	$	4,721,742	$	5,148,204	$	4,727,094
Other loans, net		1,475,088		1,556,488		1,544,501		1,365,419		1,182,309		1,525,105		1,154,764
Total loans, net		6,633,301		6,686,888		6,700,476		6,375,516		5,904,051		6,673,309		5,881,858
Taxable securities:
Mortgage-backed securities		590,732		578,134		433,917		413,875		413,902		534,836		462,216
Other securities		217,763		232,020		300,828		266,663		243,754		249,899		243,782
Total taxable securities		808,495		810,154		734,745		680,538		657,656		784,735		705,998
Tax-exempt securities:
Other securities		50,832		50,830		50,828		50,768		51,652		50,830		58,464
Total tax-exempt securities		50,832		50,830		50,828		50,768		51,652		50,830		58,464
Interest-earning deposits and federal funds sold		115,689		242,302		181,168		136,650		62,537		179,480		88,659
Total interest-earning assets		7,608,317		7,790,174		7,667,217		7,243,472		6,675,896		7,688,354		6,734,979
Other assets		464,601		473,379		480,497		461,935		407,132		472,767		396,871
Total assets	$	8,072,918	$	8,263,553	$	8,147,714	$	7,705,407	$	7,083,028	$	8,161,121	$	7,131,850

Interest-bearing Liabilities:
Deposits:
Savings accounts	$	153,120	$	153,113	$	170,079	$	163,382	$	160,100	$	158,708	$	180,829
NOW accounts		2,107,866		2,255,581		2,185,384		1,924,840		1,625,109		2,182,660		1,495,473
Money market accounts		2,107,473		2,043,257		1,905,543		1,507,245		1,461,996		2,019,497		1,579,712
Certificate of deposit accounts		1,037,964		1,043,985		1,102,641		1,113,293		1,106,355		1,061,293		1,186,188
Total due to depositors		5,406,423		5,495,936		5,363,647		4,708,760		4,353,560		5,422,158		4,442,202
Mortgagors' escrow accounts		68,562		91,545		65,372		75,005		55,868		75,171		69,427
Total interest-bearing deposits		5,474,985		5,587,481		5,429,019		4,783,765		4,409,428		5,497,329		4,511,629
Borrowings		835,874		945,410		1,048,852		1,385,809		1,322,471		942,599		1,353,416
Total interest-bearing liabilities		6,310,859		6,532,891		6,477,871		6,169,574		5,731,899		6,439,928		5,865,045
Non interest-bearing demand deposits		933,443		923,220		856,052		731,170		589,674		904,522		533,563
Other liabilities		169,328		162,752		194,144		195,200		184,943		175,317		163,044
Total liabilities		7,413,630		7,618,863		7,528,067		7,095,944		6,506,516		7,519,767		6,561,652
Equity		659,288		644,690		619,647		609,463		576,512		641,354		570,198
Total liabilities and equity	$	8,072,918	$	8,263,553	$	8,147,714	$	7,705,407	$	7,083,028	$	8,161,121	$	7,131,850

Net interest-earning assets	$	1,297,458	$	1,257,283	$	1,189,346	$	1,073,898	$	943,997	$	1,248,426	$	869,934

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 nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2021			2021			2021			2020			2020			2021			2020
Interest Income:
Mortgage loans, net	$	55,114		$	52,987		$	55,219		$	53,777		$	49,814		$	163,320		$	148,945
Other loans, net		14,084			15,012			13,802			12,343			10,553			42,898			33,088
Total loans, net		69,198			67,999			69,021			66,120			60,367			206,218			182,033
Taxable securities:
Mortgage-backed securities		2,279			2,233			1,698			1,435			1,928			6,210			7,295
Other securities		1,008			1,037			963			957			1,166			3,008			4,221
Total taxable securities		3,287			3,270			2,661			2,392			3,094			9,218			11,516
Tax-exempt securities:
Other securities		539			535			530			543			557			1,604			1,876
Total tax-exempt securities		539			535			530			543			557			1,604			1,876
Interest-earning deposits and federal funds sold		42			51			36			30			13			129			325
Total interest-earning assets		73,066			71,855			72,248			69,085			64,031			217,169			195,750
Interest Expense:
Deposits:
Savings accounts	$	61		$	66		$	75		$	75		$	65		$	202		$	420
NOW accounts		1,227			1,499			1,706			1,320			1,242			4,432			7,989
Money market accounts		1,683			2,060			2,100			2,010			2,108			5,843			12,358
Certificate of deposit accounts		1,734			1,913			2,222			3,065			3,700			5,869			15,031
Total due to depositors		4,705			5,538			6,103			6,470			7,115			16,346			35,798
Mortgagors' escrow accounts		—			1			2			—			(22)			3			44
Total interest-bearing deposits		4,705			5,539			6,105			6,470			7,093			16,349			35,842
Borrowings		4,884			5,164			5,140			6,769			6,897			15,188			20,047
Total interest-bearing liabilities		9,589			10,703			11,245			13,239			13,990			31,537			55,889
Net interest income- tax equivalent	$	63,477		$	61,152		$	61,003		$	55,846		$	50,041		$	185,632		$	139,861
Included in net interest income above:
Prepayment penalties received on loans and securities and net of reversals and recovered interest from non-accrual loans	$	2,136		$	2,046		$	948		$	1,093		$	1,518		$	5,130		$	3,483
Net gains/(losses) from fair value adjustments on qualifying hedges included in loan interest income		194			(664)			1,427			1,023			230			957			(2,208)
Purchase accounting adjustments		1,100			565			922			11			—			2,587			—
Interest-earning Assets Yields:
Mortgage loans, net		4.27	%		4.13	%		4.28	%		4.29	%		4.22	%		4.23	%		4.20	%
Other loans, net		3.82			3.86			3.57			3.62			3.57			3.75			3.82
Total loans, net		4.17			4.07			4.12			4.15			4.09			4.12			4.13
Taxable securities:
Mortgage-backed securities		1.54			1.54			1.57			1.39			1.86			1.55			2.10
Other securities		1.85			1.79			1.28			1.44			1.91			1.60			2.31
Total taxable securities		1.63			1.61			1.45			1.41			1.88			1.57			2.17
Tax-exempt securities: ⁽¹⁾
Other securities		4.24			4.21			4.17			4.28			4.31			4.21			4.28
Total tax-exempt securities		4.24			4.21			4.17			4.28			4.31			4.21			4.28
Interest-earning deposits and federal funds sold		0.15			0.08			0.08			0.09			0.08			0.10			0.49
Total interest-earning assets		3.84	%		3.69	%		3.77	%		3.82	%		3.84	%		3.77	%		3.88	%
Interest-bearing Liabilities Yields:
Deposits:
Savings accounts		0.16	%		0.17	%		0.18	%		0.18	%		0.16	%		0.17	%		0.31	%
NOW accounts		0.23			0.27			0.31			0.27			0.31			0.27			0.71
Money market accounts		0.32			0.40			0.44			0.53			0.58			0.39			1.04
Certificate of deposit accounts		0.67			0.73			0.81			1.10			1.34			0.74			1.69
Total due to depositors		0.35			0.40			0.46			0.55			0.65			0.40			1.07
Mortgagors' escrow accounts		—			—			0.01			—			(0.16)			0.01			0.08
Total interest-bearing deposits		0.34			0.40			0.45			0.54			0.64			0.40			1.06
Borrowings		2.34			2.18			1.96			1.95			2.09			2.15			1.97
Total interest-bearing liabilities		0.61	%		0.66	%		0.69	%		0.86	%		0.98	%		0.65	%		1.27	%

Net interest rate spread (tax equivalent)		3.23	%		3.03	%		3.08	%		2.96	%		2.86	%		3.12	%		2.61	%
Net interest margin (tax equivalent)		3.34	%		3.14	%		3.18	%		3.08	%		3.00	%		3.22	%		2.77	%
Ratio of interest-earning assets to interest-bearing liabilities		1.21	X		1.19	X		1.18	X		1.17	X		1.16	X		1.19	X		1.15	X

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

DEPOSIT and LOAN COMPOSITION

(Unaudited)

Deposit Composition


											September 2021 vs.		September 2021 vs.
	September 30,		June 30,		March 31,		December 31,		September 30,		June 2021		September 2020
(Dollars in thousands)	2021		2021		2021		2020		2020		% Change		% Change
Non-interest bearing	$	941,259	$	945,491	$	917,189	$	778,672	$	607,954	(0.4)	%	54.8	%
Interest bearing:
Certificate of deposit accounts		1,040,098		1,020,615		1,070,595		1,138,361		1,051,644	1.9		(1.1)
Savings accounts		152,306		152,931		170,272		168,183		160,294	(0.4)		(5.0)
Money market accounts		2,152,085		2,057,188		1,990,656		1,682,345		1,381,552	4.6		55.8
NOW accounts		2,135,643		2,122,565		2,177,865		2,323,172		1,704,915	0.6		25.3
Total interest-bearing deposits		5,480,132		5,353,299		5,409,388		5,312,061		4,298,405	2.4		27.5
Total deposits	$	6,421,391	$	6,298,790	$	6,326,577	$	6,090,733	$	4,906,359	1.9	%	30.9	%

Loan Composition


											September 2021 vs.		September 2021 vs.
	September 30,		June 30,		March 31,		December 31,		September 30,		June 2021		September 2020
(Dollars in thousands)	2021		2021		2021		2020		2020		% Change		% Change
Multifamily residential	$	2,498,980	$	2,542,010	$	2,525,967	$	2,533,952	$	2,252,757	(1.7)	%	10.9	%
Commercial real estate		1,745,855		1,726,895		1,721,702		1,754,754		1,636,659	1.1		6.7
One-to-four family ― mixed-use property		579,100		582,211		595,431		602,981		585,159	(0.5)		(1.0)
One-to-four family ― residential		280,343		288,652		239,391		245,211		191,011	(2.9)		46.8
Co-operative apartments		7,804		7,883		7,965		8,051		8,132	(1.0)		(4.0)
Construction		71,464		62,802		61,528		83,322		63,567	13.8		12.4
Mortgage Loans		5,183,546		5,210,453		5,151,984		5,228,271		4,737,285	(0.5)		9.4

Small Business Administration⁽¹⁾		148,855		215,158		267,120		167,376		124,649	(30.8)		19.4
Taxi medallion		—		—		—		2,757		2,317	—		(100.0)
Commercial business and other		1,294,688		1,291,526		1,326,657		1,303,225		1,063,429	0.2		21.7
Non-mortgage loans		1,443,543		1,506,684		1,593,777		1,473,358		1,190,395	(4.2)		21.3

Net unamortized premiums and unearned loan fees ⁽²⁾		3,265		1,669		(445)		3,045		13,718	95.6		(76.2)
Allowance for loan losses		(36,363)		(42,670)		(45,099)		(45,153)		(38,343)	(14.8)		(5.2)
Net loans	$	6,593,991	$	6,676,136	$	6,700,217	$	6,659,521	$	5,903,055	(1.2)	%	11.7	%

⁽¹⁾ Includes $130.8 million, $197.3 million, $251.0 million, $151.9 million and $111.6 million of PPP loans at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, respectively.

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

LOAN CLOSINGS and RATES

(Unaudited)

Loan Closings


	For the three months ended										For the nine months ended
	September 30,		June 30,		March 31,		December 31,		September 30,			September 30,	September 30,
(In thousands)	2021		2021		2021		2020		2020		2021		2020
Multifamily residential	$	41,850	$	66,913	$	58,553	$	52,024	$	33,733	$	167,316	$	160,705
Commercial real estate		48,447		37,963		17,156		57,634		26,644		103,566		134,218
One-to-four family – mixed-use property		12,823		7,135		8,712		9,692		3,867		28,670		25,439
One-to-four family – residential		2,761		59,494		3,131		8,422		2,296		65,386		13,383
Co-operative apartments		—		—		—		—		—		—		704
Construction		8,687		5,281		7,123		6,869		5,420		21,091		14,990
Mortgage Loans		114,568		176,786		94,675		134,641		71,960		386,029		349,439

Small Business Administration⁽¹⁾		415		17,585		125,093		598		18,456		143,093		111,754
Commercial business and other		128,946		130,036		103,118		180,787		65,160		362,100		226,895
Non-mortgage Loans		129,361		147,621		228,211		181,385		83,616		505,193		338,649

Total Closings	$	243,929	$	324,407	$	322,886	$	316,026	$	155,576	$	891,222	$	688,088

⁽¹⁾ Includes $15.5 million, $123.2 million and $18.4 million of PPP closings for the three months ended June 30, 2021, March 31, 2021, and September 30, 2020, respectively.

Weighted Average Rate on Loan Closings


	For the three months ended
	September 30,		June 30,		March 31,		December 31,		September 30,
Loan type	2021		2021		2021		2020		2020
Mortgage loans	3.80	%	3.53	%	3.47	%	3.47	%	3.56	%
Non-mortgage loans	3.49		3.23		2.26		3.37		2.81
Total loans	3.64	%	3.39	%	2.62	%	3.41	%	3.16	%

Excluding PPP loans	3.64	%	3.51	%	3.62	%	3.41	%	3.45	%

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ASSET QUALITY

(Unaudited)

Allowance for Loan Losses


	For the three months ended															For the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2021			2021			2021			2020			2020			2021			2020
Allowance for loan losses
Beginning balances	$	42,670		$	45,099		$	45,153		$	38,343		$	36,710			45,153			21,751
Adoption of Current Expected Credit Losses		—			—			—			—			—			—			379

Net loan charge-off (recoveries):
Multifamily residential		—			—			33			(11)			(14)		$	33		$	(27)
Commercial real estate		—			—			64			—			—			64			—
One-to-four family – mixed-use property		(123)			3			19			—			(60)			(101)			(135)
One-to-four family – residential		(147)			(2)			(5)			(2)			(2)			(154)			(10)
Small Business Administration		(8)			(9)			(10)			(3)			(47)			(27)			111
Taxi medallion		(1,235)			(222)			2,758			124			951			1,301			951
Commercial business and other		894			1,132			6			538			9			2,032			2,103
Total		(619)			902			2,865			646			837			3,148			2,993

(Benefit) provision for loan losses		(6,926)			(1,527)			2,811			3,357			2,470			(5,642)			19,206
Allowance recorded at the time of Acquisition		—			—			—			4,099			—			—			—

Ending balance	$	36,363		$	42,670		$	45,099		$	45,153		$	38,343		$	36,363		$	38,343

Gross charge-offs	$	1,019		$	1,186		$	2,922		$	752		$	964		$	5,127		$	3,253
Gross recoveries		1,638			284			57			106			127			1,979			260

Allowance for loan losses to gross loans		0.55	%		0.64	%		0.67	%		0.67	%		0.65	%		0.55	%		0.65	%
Net loan charge-offs (recoveries) to average loans		(0.04)			0.05			0.17			0.04			0.06			0.06			0.07

Non-Performing Assets


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

Non-accrual Loans:
Multifamily residential		4,192			4,669			4,338			2,524			2,661
Commercial real estate		613			8			8			1,683			2,657
One-to-four family - mixed-use property ⁽¹⁾		2,204			2,309			2,355			1,366			1,366
One-to-four family - residential		7,807			6,940			7,335			5,854			6,454
Small Business Administration		976			976			1,151			1,151			1,151
Taxi medallion⁽¹⁾		—			—			—			2,317			2,218
Commercial business and other⁽¹⁾		2,500			2,489			3,417			3,430			8,285
Total		18,292			17,391			18,604			18,325			24,792

Total Non-performing Loans (NPLs)		20,217			17,592			21,186			21,073			24,792

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

Total Non-performing Assets	$	20,217		$	17,592		$	21,221		$	21,108		$	24,827

Non-performing Assets to Total Assets		0.25	%		0.22	%		0.26	%		0.26	%		0.35	%
Allowance For Loan Losses to NPLs		179.9	%		242.6	%		212.9	%		214.3	%		154.7	%

⁽¹⁾Not included in the above analysis are non-accrual performing TDR one-to-four family mixed use property loans totaling $0.3 million each in 3Q21, 2Q21, 1Q21, 4Q20, and 3Q20; non-accrual performing TDR taxi medallion loans totaling $0.4 million in 4Q20 and $0.1 million in 3Q20, and non-accrual performing TDR commercial business loans totaling $2.2 million each in 2Q21, 1Q21, and 4Q20, and $1.0 million in 3Q20.

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

The variance in GAAP and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to swaps designated to protect against rising rates and borrowing carried at fair value under the fair value option. As the swaps get closer to maturity, the volatility in fair value adjustments will dissipate. In a declining interest rate environment, the movement in the curve exaggerates our mark-to-market loss position. In a rising interest rate environment or a steepening of the yield curve, the loss position would experience an improvement.

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

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

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

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

(Unaudited)


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

GAAP income before income taxes	$	34,812		$	25,416		$	26,224		$	3,878		$	18,820		$	86,452		$	41,304

Day 1, Provision for Credit Losses - Empire transaction (Provision for credit losses)		—			—			—			1,818			—			—			—
Net (gain) loss from fair value adjustments (Non-interest income (loss))		2,289			6,548			(982)			4,129			2,225			7,855			(1,987)
Net (gain) loss on sale of securities (Non-interest income (loss))		10			(123)			—			610			—			(113)			91
Life insurance proceeds (Non-interest income (loss))		—			—			—			—			—			—			(659)
Net gain on disposition of assets (Non-interest income (loss))		—			—			(621)			—			—			(621)			—
Net (gain) loss from fair value adjustments on qualifying hedges (Interest and fees on loans)		(194)			664			(1,427)			(1,023)			(230)			(957)			2,208
Prepayment penalty on borrowings (Non-interest expense)		—			—			—			7,834			—			—			—
Net amortization of purchase accounting adjustments (Various)		(958)			(418)			(789)			80			—			(2,165)			—
Merger (benefit) expense (Various)		2,096			(490)			973			5,349			422			2,579			1,545

Core income before taxes		38,055			31,597			23,378			22,675			21,237			93,030			42,502

Provision for income taxes for core income		10,226			8,603			6,405			4,891			5,069			25,234			10,537

Core net income	$	27,829		$	22,994		$	16,973		$	17,784		$	16,168		$	67,796		$	31,965

GAAP diluted earnings per common share	$	0.81		$	0.61		$	0.60		$	0.11		$	0.50		$	2.02		$	1.08
Day 1, Provision for Credit Losses - Empire transaction, net of tax		—			—			—			0.05			—			—			—
Net (gain) loss from fair value adjustments, net of tax		0.05			0.15			(0.02)			0.11			0.06			0.18			(0.05)
Net loss on sale of securities, net of tax		—			—			—			0.02			—			—			—
Life insurance proceeds		—			—			—			—			—			—			(0.02)
Net gain on disposition of assets, net of tax		—			—			(0.01)			—			—			(0.01)			—
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax		—			0.02			(0.03)			(0.03)			(0.01)			(0.02)			0.06
Prepayment penalty on borrowings, net of tax		—			—			—			0.20			—			—			—
Net amortization of purchase accounting adjustments, net of tax		(0.02)			(0.01)			(0.02)			—			—			(0.05)			—
Merger (benefit) expense, net of tax		0.05			(0.01)			0.02			0.14			0.01			0.06			0.04
NYS tax change		—			(0.02)			—			—			—			(0.02)			—

Core diluted earnings per common share⁽¹⁾	$	0.88		$	0.73		$	0.54		$	0.58		$	0.56		$	2.14		$	1.11


Core net income, as calculated above	$	27,829		$	22,994		$	16,973		$	17,784		$	16,168		$	67,796		$	31,965
Average assets		8,072,918			8,263,553			8,147,714			7,705,407			7,083,028			8,161,121			7,131,850
Average equity		659,288			644,690			619,647			609,463			576,512			641,354			570,198
Core return on average assets⁽²⁾		1.38	%		1.11	%		0.83	%		0.92	%		0.91	%		1.11	%		0.60	%
Core return on average equity⁽²⁾		16.88	%		14.27	%		10.96	%		11.67	%		11.22	%		14.09	%		7.47	%

⁽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 nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2021			2021			2021			2020			2020			2021			2020

GAAP Net interest income	$	63,364		$	61,039		$	60,892		$	55,732		$	49,924		$	185,295		$	139,467
Net (gain) loss from fair value adjustments on qualifying hedges		(194)			664			(1,427)			(1,023)			(230)			(957)			2,208
Net amortization of purchase accounting adjustments		(1,100)			(565)			(922)			(11)			—			(2,587)			—
Core Net interest income	$	62,070		$	61,138		$	58,543		$	54,698		$	49,694		$	181,751		$	141,675

GAAP Non-interest income (loss)	$	866		$	(3,210)		$	6,311		$	(1,181)		$	1,351		$	3,967		$	12,224
Net (gain) loss from fair value adjustments		2,289			6,548			(982)			4,129			2,225			7,855			(1,987)
Net loss on sale of securities		10			(123)			—			610			—			(113)			91
Life insurance proceeds		—			—			—			—			—			—			(659)
Net gain on sale of assets		—			—			(621)			—			—			(621)			—
Core Non-interest income	$	3,165		$	3,215		$	4,708		$	3,558		$	3,576		$	11,088		$	9,669

GAAP Non-interest expense	$	36,345		$	34,011		$	38,159		$	46,811		$	29,985		$	108,515		$	91,120
Prepayment penalty on borrowings		—			—			—			(7,834)			—			—			—
Net amortization of purchase accounting adjustments		(142)			(147)			(133)			(91)			—			(422)			—
Merger (benefit) expense		(2,096)			490			(973)			(5,349)			(422)			(2,579)			(1,545)
Core Non-interest expense	$	34,107		$	34,354		$	37,053		$	33,537		$	29,563		$	105,514		$	89,575

Net interest income	$	63,364		$	61,039		$	60,892		$	55,732		$	49,924		$	185,295		$	139,467
Non-interest income (loss)		866			(3,210)			6,311			(1,181)			1,351			3,967			12,224
Non-interest expense		(36,345)			(34,011)			(38,159)			(46,811)			(29,985)			(108,515)			(91,120)
Pre-provision pre-tax net revenue	$	27,885		$	23,818		$	29,044		$	7,740		$	21,290		$	80,747		$	60,571

Core:
Net interest income	$	62,070		$	61,138		$	58,543		$	54,698		$	49,694		$	181,751		$	141,675
Non-interest income		3,165			3,215			4,708			3,558			3,576			11,088			9,669
Non-interest expense		(34,107)			(34,354)			(37,053)			(33,537)			(29,563)			(105,514)			(89,575)
Pre-provision pre-tax net revenue	$	31,128		$	29,999		$	26,198		$	24,719		$	23,707		$	87,325		$	61,769
Efficiency Ratio		52.3	%		53.4	%		58.6	%		57.6	%		55.4	%		54.7	%		59.1	%

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 and BASE NET INTEREST INCOME

(Unaudited)


	For the three months ended															For the nine months ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
(Dollars in thousands)	2021			2021			2021			2020			2020			2021			2020
GAAP net interest income	$	63,364		$	61,039		$	60,892		$	55,732		$	49,924		$	185,295		$	139,467
Net (gain) loss from fair value adjustments on qualifying hedges		(194)			664			(1,427)			(1,023)			(230)			(957)			2,208
Net amortization of purchase accounting adjustments		(1,100)			(565)			(922)			(11)			—			(2,587)			—
Tax equivalent adjustment		113			113			111			114			117			337			394
Core net interest income FTE	$	62,183		$	61,251		$	58,654		$	54,812		$	49,811		$	182,088		$	142,069
Prepayment penalties received on loans and securities, net of reversals and recoveries of interest from non-accrual loans		(2,136)			(2,046)			(948)			(1,093)			(1,518)			(5,130)			(3,483)
Base net interest income FTE	$	60,047		$	59,205		$	57,706		$	53,719		$	48,293		$	176,958		$	138,586

Total average interest-earning assets ⁽¹⁾	$	7,616,332		$	7,799,176		$	7,676,833		$	7,245,147		$	6,675,896		$	7,697,229		$	6,734,979
Core net interest margin FTE		3.27	%		3.14	%		3.06	%		3.03	%		2.98	%		3.15	%		2.81	%
Base net interest margin FTE		3.15	%		3.04	%		3.01	%		2.97	%		2.89	%		3.07	%		2.74	%

GAAP interest income on total loans, net	$	69,198		$	67,999		$	69,021		$	66,120		$	60,367		$	206,218		$	182,033
Net (gain) loss from fair value adjustments on qualifying hedges		(194)			664			(1,427)			(1,023)			(230)			(957)			2,208
Net amortization of purchase accounting adjustments		(1,126)			(624)			(728)			(356)			—			(2,478)			—
Core interest income on total loans, net	$	67,878		$	68,039		$	66,866		$	64,741		$	60,137		$	202,783		$	184,241
Prepayment penalties received on loans, net of reversals and recoveries of interest from non-accrual loans		(2,135)			(2,046)			(947)			(1,093)			(1,443)			(5,128)			(3,408)
Base interest income on total loans, net	$	65,743		$	65,993		$	65,919		$	63,648		$	58,694		$	197,655		$	180,833

Average total loans, net ⁽¹⁾	$	6,642,434		$	6,697,103		$	6,711,446		$	6,379,429		$	5,904,051		$	6,683,412		$	5,881,858
Core yield on total loans		4.09	%		4.06	%		3.99	%		4.06	%		4.07	%		4.05	%		4.18	%
Base yield on total loans		3.96	%		3.94	%		3.93	%		3.99	%		3.98	%		3.94	%		4.10	%

⁽¹⁾ Excludes purchase accounting average balances for three months ended September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020.

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

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 thousands)	2021			2021			2021			2020			2020
Total Equity	$	668,096		$	655,167		$	639,201		$	618,997		$	586,406
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(16,127)
Core deposit Intangibles		(2,708)			(2,859)			(3,013)			(3,172)			—
Intangible deferred tax liabilities		287			287			287			287			292
Tangible Stockholders' Common Equity	$	648,039		$	634,959		$	618,839		$	598,476		$	570,571

Total Assets	$	8,077,334		$	8,159,345		$	8,159,184		$	7,976,394		$	7,063,056
Less:
Goodwill		(17,636)			(17,636)			(17,636)			(17,636)			(16,127)
Core deposit Intangibles		(2,708)			(2,859)			(3,013)			(3,172)			—
Intangible deferred tax liabilities		287			287			287			287			292
Tangible Assets	$	8,057,277		$	8,139,137		$	8,138,822		$	7,955,873		$	7,047,221

Tangible Stockholders' Common Equity to Tangible Assets		8.04	%		7.80	%		7.60	%		7.52	%		8.10	%

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

Cover	Oct. 26, 2021
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 26, 2021
Entity File Number	001-33013
Entity Registrant Name	FLUSHING FINANCIAL CORPORATION
Entity Central Index Key	0000923139
Entity Tax Identification Number	11-3209278
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	220 RXR Plaza
Entity Address, City or Town	Uniondale
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11556
City Area Code	718
Local Phone Number	961-5400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FFIC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false