THIRD QUARTER 2019¹ HIGHLIGHTS

• GAAP diluted EPS was $0.37, unchanged QoQ and down 39.3% YoY
• Core diluted EPS was $0.48, up 14.3% QoQ and down 11.1% YoY
• Record quarterly loan originations driven by C&I closings totaling $237.9 million
• Net interest margin was 2.37%, down 8bps QoQ and 35bps YoY
• Core net interest margin was 2.33%, down 7bps QoQ and 20bps YoY
• GAAP net interest income of $38.9 million, down 2.6% QoQ and 6.2% YoY
• Core net interest income of $40.2 million, down 1.5% QoQ and 3.2% YoY
• GAAP and core ROAE were 7.6% and 9.8%, respectively, compared with 7.5% and 8.6%, respectively in 2Q19
• GAAP and core ROAA were 0.6% and 0.8%, respectively, compared with 0.6% and 0.7%, respectively in 2Q19
• Provision for loan losses of $0.7 million, or $0.02 after-tax per diluted common share, driven mainly by growth in the C&I portfolio

UNIONDALE, N.Y., Oct. 29, 2019 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC), the parent holding company for Flushing Bank (the “Bank”), today announced its financial results for the third quarter ended September 30, 2019.

John R. Buran, President and Chief Executive Officer, stated, “We are pleased to report core diluted earnings per share increased 14%, while GAAP earnings per diluted share was unchanged from 2Q19. The primary difference between GAAP and core earnings is the non-cash net losses from fair value adjustments, or $0.10 per diluted share, which is discussed in more detail later in this release. Core earnings for 3Q19 included the benefit of the FDIC small business assessment credit of $0.03, after-tax per diluted common share and the true-up of our effective tax rate to 22% from 24% which equated to $0.02 per diluted common share. Our core ROAE increased to 9.8% for the quarter compared to 8.6% for the linked quarter and our GAAP ROAE increased seven basis points during the same period to 7.6%. Similarly, the core ROAA increased nine basis points to 0.79% compared to 0.70% for 2Q19 and GAAP ROAA increased one basis point to 0.62%.”

“We generated robust loan growth of 9% (annualized) for the quarter, as we booked record quarterly loan closings driven by record C&I production. This marks the second consecutive quarter of record C&I closings. Total loan closings for the quarter amounted to $398 million, with $238 million, or 60% from C&I closings. The strong C&I production aids the continuing diversification of our loan portfolio. These C&I loans are generally floating rate and represent 19% of total loans at September 30, 2019, compared to 16% at September 30, 2018. At September 30, 2019, the loan pipeline remains strong at $419 million.”

“The net interest margin compressed 8bps QoQ. During the quarter, loan yields on originations decreased 50bps from 2Q19, as we continued to experience pricing pressure due to the inverted yield curve at the pricing point for our loan tenor. Although the Federal Reserve has recently cut rates, we still experienced margin compression on the liability side, with the cost of funds increasing 4bps primarily driven by pricing pressure on our retail and municipal deposits, as competition from traditional bank and non-bank competitors remains very strong. We have experienced an increase in the cost of funds throughout the first two quarters of 2019 and into the middle of 3Q19. Starting in late 3Q19, the cost of funds began to improve. The Company has approximately $1 billion of retail CDs maturing before 3Q20 at an average rate of 2.33%. At quarter-end, our average new CD cost was less than 2.00%. Additionally, in order to continue to diversify deposit gathering channels, we have embarked on a digital transformation strategy. This strategy will enhance our current technological offerings to state of the art digital services. We expect the new technologies to be fully operational in the first quarter of 2020.”

“We remain focused on preserving strong risk management practices, including conservative underwriting standards and improving yields to achieve improved risk-adjusted returns. We continue to focus on increasing the amount of direct loan business, as approximately 65% of 3Q19 loan closings were non-brokered loans.”

• Multi-family (excluding underlying co-operative mortgages), commercial real estate, and one-to-four family mixed-use property mortgage loans originated during 3Q19 had a yield of 4.32%, a decrease of 28bps from 4.60% for 2Q19 and 6bps from 4.38% for 3Q18. As noted, the decrease in the yield of 3Q19 originations was due to the inverted yield curve. We maintained our asset quality as these loans had an average loan-to-value ratio of 40% and an average debt coverage ratio of 191%.

• We remain committed to our strategy of focusing on C&I loans, commercial real estate loans and multi-family. In 3Q19, these loan closings represented 60%, 17%, and 15%, respectively, of all originations, while maintaining conservative loan-to-value and debt coverage ratios.

“Overall, we remain well capitalized and well positioned to deliver profitable growth and long-term value to our shareholders as we continue to execute our strategic objectives.”

“As previously announced we are opening a new branch in Hicksville, NY, which expands our presence on Long Island.”

Mr. Buran continued, “We are excited about the signing of the definitive merger agreement to acquire Empire Bancorp, Inc. As previously reported, the transaction is valued at an estimated $111.6 million, based on our closing price on October 24, 2019. The combined company at close is expected to have approximately $8.0 billion in assets, $6.3 billion in loans and $5.8 billion in deposits.”

Mr. Buran concluded, “The combination of the new branch opening and merger will provide our customers with an expanded network of 24 branches, with 16 branches in New York City, five branches in Nassau County and three branches in Suffolk County.” 

Summary of Strategic Objectives

• Manage cost of funds and continue to improve funding mix

• Increase interest income by leveraging loan pricing opportunities and portfolio mix

• Enhance core earnings power by improving scalability and efficiency

• Manage credit risk

• Remain well capitalized under all stress test scenarios

Earnings Summary:

Net Interest Income

Net interest income for 3Q19 was $38.9 million, a decrease of $2.6 million, or 6.2% YoY (3Q19 compared to 3Q18) and $1.1 million, or 2.6% QoQ (3Q19 compared to 2Q19).

• Net interest margin of 2.37%, decreased 35bps YoY and 8bps QoQ

• Net interest spread of 2.15%, decreased 38bps YoY and 8bps QoQ

• Yield on average interest-earning assets of 4.22%, decreased 7bps YoY and 4bps QoQ

• Cost of average interest-bearing liabilities of 2.07%, increased 31bps YoY and 4bps QoQ

• Cost of funds of 1.94%, increased 30bps YoY and 4bps QoQ

• Average balance of total interest-earning assets of $6,589.5 million, increased $459.1 million, or 7.5%, YoY and $49.4 million, or 0.8%, QoQ

• Net interest income includes prepayment penalty income from loans totaling $1.7 million in 3Q19, $1.1 million in 2Q19 and $1.9 million in 3Q18; recovered interest from delinquent loans of $0.3 million in 3Q19, $0.5 million in 2Q19 and $1.1 million in 3Q18; and losses from fair value adjustments on qualifying hedges totaling $1.3 million in 3Q19, $0.8 million in 2Q19 and none in 3Q18

• Absent all above items noted in the preceding bullet, the yield on interest-earning assets was 4.18% in 3Q19, a decrease of 3bps from 2Q19 but an increase of 9bps from 3Q18 and the net interest margin was 2.33% in 3Q19, which decreased 7bps from 2Q19 and 20bps from 3Q18

Provision for loan losses

The Company recorded a provision of $0.7 million compared to $1.5 million in 2Q19 and none in 3Q18.

• 3Q19 provision for loan losses was primarily due to growth in the commercial business loan portfolio

• Recorded net charge-offs (recoveries) of $0.2 million in 3Q19, $1.0 million in 2Q19, and ($0.1) million in 3Q18

Non-interest Income

Non-interest income for 3Q19 was $1.0 million, a decrease of $3.9 million YoY, and $1.4 million QoQ

• Non-interest income included net losses from fair value adjustments of $2.1 million in 3Q19, $2.0 million in 2Q19, and $0.2 million in 3Q18

• Additionally, non-interest income included net gain on sale of loans of $0.2 million in 3Q19, $0.1 million in 2Q19 and $10,000 in 3Q18; capital gain of $0.5 million in 2Q19, net gain on sale of assets of $0.8 million in 2Q19 and life insurance proceeds of $2.2 million in 3Q18

• Absent all above items, non-interest income was $3.0 million in 3Q19 and 2Q19 compared to $2.9 million in 3Q18

Non-interest Expense

Non-interest expense for 3Q19 was $26.0 million, a decrease of $1.2 million, or 4.4 % YoY, and $1.1 million, or 4.1% QoQ

• Non-interest expense improved QoQ and YoY, primarily due to a reduction in FDIC insurance expense resulting from the FDIC small business assessment credit

• Absent the benefit of the FDIC small business assessment credit, non-interest expense was $27.3 million, an increase of $0.1 million, or 0.2% YoY, and $0.1 million, or 0.5% QoQ

• The ratio of non-interest expense to average assets improved to 1.49% in 3Q19 compared to 1.58% in 2Q19 and 1.69% in 3Q18

• The efficiency ratio was 58.9% in 3Q19 compared to 61.1% in 2Q19 and 61.0% in 3Q18

Provision for Income Taxes

The provision for income taxes in 3Q19 was $2.5 million, an increase of $0.6 million, or 32.8% YoY but a decrease of $0.7 million, or 22.5% QoQ.

• Pre-tax income decreased by $6.0 million, or 31.1% YoY, and by $0.6 million, or 4.1% QoQ

• The effective tax rates were 19.1% in 3Q19, 23.7% in 2Q19 and 9.9% in 3Q18

• The 3Q19 effective tax rate reflects a reduction in the estimated full year tax rate to 22% from 24%

Financial Condition Summary:

Loans:

• Net loans held for investment were $5,743.7 million reflecting an increase of 2.3% QoQ (not annualized) and 7.2% from September 30, 2018, as we continue to focus on the origination of full banking relationship loans through C&I loans, multi-family loans and commercial real estate

• Loan closings of commercial business loans, multi-family loans and commercial real estate totaled $364.9 million for 3Q19, or 91.6% of loan production

• Loan pipeline was $418.9 million at September 30, 2019, compared to $423.9 million at June 30, 2019 and $355.2 million at September 30, 2018

• The loan-to-value ratio on our portfolio of real estate dependent loans as of September 30, 2019 totaled 38.4%

The following table shows the weighted average rate received from loan closings for the periods indicated:
		For the three months ended
		September 30,			June 30,			September 30,
Loan type		2019			2019			2018
Mortgage loans		4.40	%		4.75	%		4.48	%
Non-mortgage loans		4.38	%		5.01	%		4.50	%
Total loans		4.39	%		4.89	%		4.49	%

 

Credit Quality:

• Non-performing loans totaled $14.7 million, a decrease of $1.5 million, or 9.5%, from $16.3 million at December 31, 2018

• Non-performing assets totaled $15.0 million, a decrease of $1.3 million, or 8.0%, from $16.3 million at December 31, 2018

• Classified assets totaled $31.3 million, a decrease of $15.2 million, or 32.6%, from $46.5 million at December 31, 2018

• Loans classified as troubled debt restructured (TDR) totaled $7.0 million, a decrease of $1.3 million, or 16.0%, from $8.4 million at December 31, 2018

• We anticipate continued low loss content in the portfolio, as our strong underwriting standards coupled with our practice of obtaining updated appraisals and recording charge-offs early in the delinquency process has resulted in a 34.5% average loan-to-value for non-performing loans collateralized by real estate

• Net charge-offs totaled $2.0 million during the nine months ended September 30, 2019 driven mainly by charge-offs of one commercial business loan relationship

Capital Management:

• The Company and Bank, at September 30, 2019, were both well capitalized under all applicable regulatory requirements

• Through 3Q19, stockholders’ equity increased $18.9 million, or 3.4%, to $568.4 million due to net income of $28.3 million, partially offset by the declaration and payment of dividends on the Company’s common stock

• During 3Q19, the Company repurchased 40,000 shares at an average cost of $19.28 per share; as of September 30, 2019, up to 427,211 shares remained subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit

• Book value per common share increased to $20.19 at September 30, 2019, from $19.64 at December 31, 2018 and tangible book value per common share, a non-GAAP measure, increased to $19.62 at September 30, 2019, from $19.07 at December 31, 2018

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 30, 2019 at 9:30 AM (ET) to discuss the Company’s strategy and results for the third quarter

• Dial-in for Live Call: 1-877-509-5836

• Webcast: https://services.choruscall.com/links/ffic191030.html

• Dial-in for Replay: 1-877-344-7529

• Replay Access Code: 10129663

• The conference call will be simultaneously webcast and archived through 5:00 PM (ET) on October 30, 2020
  

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.

“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, 2018 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.

- Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)
		For the three months ended												For the nine months ended
		September 30,				June 30,				September 30,				September 30,				September 30,
			2019				2019				2018				2019				2018
Interest and Dividend Income
Interest and fees on loans		$	62,825			$	62,273			$	59,658			$	187,428			$	171,997
Interest and dividends on securities:
Interest			6,287				6,811				5,562				20,007				16,646
Dividends			18				19				18				56				49
Other interest income			259				472				248				1,286				873
Total interest and dividend income			69,389				69,575				65,486				208,777				189,565
Interest Expense
Deposits			22,244				22,827				17,425				66,540				44,323
Other interest expense			8,196				6,739				6,540				21,476				18,472
Total interest expense			30,440				29,566				23,965				88,016				62,795
Net Interest Income			38,949				40,009				41,521				120,761				126,770
Provision for loan losses			683				1,474				-				3,129				153
Net Interest Income After Provision for Loan Losses			38,266				38,535				41,521				117,632				126,617
Non-interest Income
Banking services fee income			847				1,059				1,017				2,879				2,965
Net loss on sale of securities			-				(15	)			-				(15	)			-
Net gain on sale of loans			204				114				10				381				168
Net gain on sale of assets			-				770				-				770				-
Net loss from fair value adjustments			(2,124	)			(1,956	)			(170	)			(6,160	)			(537	)
Federal Home Loan Bank of New York stock dividends			834				826				873				2,563				2,630
Life insurance proceeds			-				-				2,222				43				2,998
Bank owned life insurance			1,000				810				782				2,550				2,320
Other income			278				843				221				1,422				779
Total non-interest income			1,039				2,451				4,955				4,433				11,323
Non-interest Expense
Salaries and employee benefits			15,461				15,668				15,720				50,295				49,466
Occupancy and equipment			2,847				2,742				2,475				8,378				7,528
Professional services			2,167				1,806				1,915				6,238				6,539
FDIC deposit insurance			(589	)			667				596				563				1,643
Data processing			1,490				1,420				1,427				4,402				4,254
Depreciation and amortization			1,439				1,497				1,484				4,454				4,328
Other real estate owned/foreclosure expense (benefit)			48				20				(102	)			145				34
Net gain from sales of real estate owned			-				-				-				-				(27	)
Other operating expenses			3,182				3,338				3,718				11,147				12,158
Total non-interest expense			26,045				27,158				27,233				85,622				85,923
Income Before Income Taxes			13,260				13,828				19,243				36,443				52,017
Provision for Income Taxes
Federal			2,457				2,981				2,307				7,381				8,225
State and local			79				291				(397	)			714				1,124
Total taxes			2,536				3,272				1,910				8,095				9,349
Net Income		$	10,724			$	10,556			$	17,333			$	28,348			$	42,668
Basic earnings per common share		$	0.37			$	0.37			$	0.61			$	0.99			$	1.48
Diluted earnings per common share		$	0.37			$	0.37			$	0.61			$	0.99			$	1.48
Dividends per common share		$	0.21			$	0.21			$	0.20			$	0.63			$	0.60

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)
	September 30,				June 30,				December 31,
		2019				2019				2018
ASSETS
Cash and due from banks	$	86,989			$	56,484			$	118,561
Securities held-to-maturity:
Mortgage-backed securities		7,939				7,944				7,953
Other securities		52,101				52,242				24,065
Securities available for sale:
Mortgage-backed securities		579,010				554,481				557,953
Other securities		246,465				254,172				264,702
Loans:
Multi-family residential		2,232,305				2,263,875				2,269,048
Commercial real estate		1,559,581				1,524,693				1,542,547
One-to-four family ― mixed-use property		587,100				582,264				577,741
One-to-four family ― residential		184,432				184,024				190,350
Co-operative apartments		9,089				8,137				8,498
Construction		64,234				58,503				50,600
Small Business Administration		13,982				14,511				15,210
Taxi medallion		3,513				3,555				4,539
Commercial business and other		1,096,164				983,573				877,763
Net unamortized premiums and unearned loan fees		15,363				15,278				15,188
Allowance for loan losses		(22,035	)			(21,510	)			(20,945	)
Net loans		5,743,728				5,616,903				5,530,539
Interest and dividends receivable		26,566				26,552				25,485
Bank premises and equipment, net		28,146				28,623				30,418
Federal Home Loan Bank of New York stock		65,280				63,029				57,282
Bank owned life insurance		158,604				157,604				131,788
Goodwill		16,127				16,127				16,127
Other real estate owned, net		239				239				-
Right of use asset		42,400				42,557				-
Other assets		57,301				68,677				69,303
Total assets	$	7,110,895			$	6,945,634			$	6,834,176
LIABILITIES
Due to depositors:
Non-interest bearing	$	421,786			$	413,813			$	413,747
Certificate of deposit accounts		1,506,376				1,544,117				1,563,310
Savings accounts		193,497				196,820				210,022
Money market accounts		1,329,156				1,302,153				1,427,992
NOW accounts		1,461,694				1,368,813				1,300,852
Total deposits		4,912,509				4,825,716				4,915,923
Mortgagors' escrow deposits		61,803				52,201				44,861
Borrowed funds		1,422,440				1,371,890				1,250,843
Operating lease liability		50,626				50,898				-
Other liabilities		95,125				79,539				73,085
Total liabilities		6,542,503				6,380,244				6,284,712
STOCKHOLDERS' EQUITY
Preferred stock (5,000,000 shares authorized; none issued)		-				-				-
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares
issued at September 30, 2019, June 30, 2019 and December 31, 2018; 28,157,206
shares, 28,187,922 shares and 27,983,637 shares outstanding at September 30, 2019,
June 30, 2019 and December 31, 2018, respectively)		315				315				315
Additional paid-in capital		225,471				224,231				222,720
Treasury stock (3,373,389 shares, 3,342,673 shares and 3,546,958 shares at
September 30, 2019, June 30, 2019 and December 31, 2018, respectively)		(71,487	)			(70,913	)			(75,146	)
Retained earnings		427,062				422,373				414,327
Accumulated other comprehensive loss, net of taxes		(12,969	)			(10,616	)			(12,752	)
Total stockholders' equity		568,392				565,390				549,464
Total liabilities and stockholders' equity	$	7,110,895			$	6,945,634			$	6,834,176

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
		At or for the three months ended												At or for the nine months ended
		September 30,				June 30,				September 30,				September 30,				September 30,
			2019				2019				2018				2019				2018
Per Share Data
Basic earnings per share		$	0.37			$	0.37			$	0.61			$	0.99			$	1.48
Diluted earnings per share		$	0.37			$	0.37			$	0.61			$	0.99			$	1.48
Average number of shares outstanding for:
Basic earnings per common share computation			28,730,161				28,760,816				28,603,543				28,704,398				28,806,152
Diluted earnings per common share computation			28,730,161				28,760,816				28,603,948				28,704,402				28,806,885
Shares outstanding			28,157,206				28,187,922				28,025,081				28,157,206				28,025,081
Book value per common share (1)		$	20.19			$	20.06			$	19.33			$	20.19			$	19.33
Tangible book value per common share (2)		$	19.62			$	19.50			$	18.77			$	19.62			$	18.77
Stockholders' Equity
Stockholders' equity		$	568,392			$	565,390			$	541,756			$	568,392			$	541,756
Tangible stockholders' equity			552,551				549,549				525,920				552,551				525,920
Average Balances
Total loans, net		$	5,645,503			$	5,565,057			$	5,280,172			$	5,585,445			$	5,276,039
Total interest-earning assets			6,589,498				6,540,134				6,130,422				6,550,509				6,136,887
Total assets			6,972,403				6,891,541				6,446,540				6,911,077				6,445,097
Total due to depositors			4,422,050				4,595,189				4,213,118				4,537,869				4,233,490
Total interest-bearing liabilities			5,877,740				5,825,187				5,455,867				5,838,307				5,471,382
Stockholders' equity			564,255				560,624				536,416				559,209				532,601
Performance Ratios (3)
Return on average assets			0.62	%			0.61	%			1.08	%			0.55	%			0.88	%
Return on average equity			7.60				7.53				12.93				6.76				10.68
Yield on average interest-earning assets (4)			4.22				4.26				4.29				4.26				4.13
Cost of average interest-bearing liabilities			2.07				2.03				1.76				2.01				1.53
Cost of funds			1.94				1.90				1.64				1.88				1.44
Interest rate spread during period (4)			2.15				2.23				2.53				2.25				2.60
Net interest margin (4)			2.37				2.45				2.72				2.47				2.77
Non-interest expense to average assets			1.49				1.58				1.69				1.65				1.78
Efficiency ratio (5)			58.87				61.06				60.97				63.52				63.28
Average interest-earning assets to average
interest-bearing liabilities			1.12	X			1.12	X			1.12	X			1.12	X			1.12	X
(1) Calculated by dividing stockholders’ equity by shares outstanding.
(2) 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”.
(3) Ratios are presented on an annualized basis, where appropriate.
(4) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.
(5) Efficiency ratio, a non-GAAP measure, was calculated by dividing non-interest expense (excluding accelerated employee benefits upon officers death, merger expense, OREO expense and the net gain/loss from the sale of OREO) by the total of net interest income (excluding net losses from fair value adjustments on qualifying hedges) and non-interest income (excluding net gains and losses from the sale of securities, assets and fair value adjustments and life insurance proceeds).

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
		At or for the nine				At or for the year				At or for the nine
		months ended				ended				months ended
		September 30, 2019				December 31, 2018				September 30, 2018
Selected Financial Ratios and Other Data
Regulatory capital ratios (for Flushing Financial Corporation):
Tier 1 capital		$	606,844			$	586,582			$	578,034
Common equity Tier 1 capital			564,466				546,230				539,306
Total risk-based capital			703,879				682,527				673,343
Tier 1 leverage capital (well capitalized = 5%)			8.71	%			8.74	%			8.92	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)			10.73				10.98				11.07
Tier 1 risk-based capital (well capitalized = 8.0%)			11.53				11.79				11.86
Total risk-based capital (well capitalized = 10.0%)			13.37				13.72				13.82
Regulatory capital ratios (for Flushing Bank only):
Tier 1 capital		$	673,084			$	660,782			$	655,965
Common equity Tier 1 capital			673,084				660,782				655,965
Total risk-based capital			695,120				681,727				676,274
Tier 1 leverage capital (well capitalized = 5%)			9.66	%			9.85	%			10.12	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)			12.79				13.28				13.46
Tier 1 risk-based capital (well capitalized = 8.0%)			12.79				13.28				13.46
Total risk-based capital (well capitalized = 10.0%)			13.21				13.70				13.88
Capital ratios:
Average equity to average assets			8.09	%			8.22	%			8.26	%
Equity to total assets			7.99				8.04				8.28
Tangible common equity to tangible assets (1)			7.79				7.83				8.06
Asset quality:
Non-accrual loans (2)		$	14,260			$	16,253			$	12,533
Non-performing loans			14,705				16,253				12,644
Non-performing assets			14,979				16,288				12,679
Net charge-offs/ (recoveries)			2,039				(19	)			195
Asset quality ratios:
Non-performing loans to gross loans			0.26	%			0.29	%			0.24	%
Non-performing assets to total assets			0.21				0.24				0.19
Allowance for loan losses to gross loans			0.38				0.38				0.38
Allowance for loan losses to non-performing assets			147.11				128.60				160.17
Allowance for loan losses to non-performing loans			149.85				128.87				160.62
Full-service customer facilities			19				19				18
(1) See “Calculation of Tangible Stockholders’ Common Equity to Tangible Assets”.
(2) Excludes performing non-accrual TDR loans.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)
	For the three months ended
	September 30, 2019									June 30, 2019									September 30, 2018
	Average						Yield/			Average						Yield/			Average						Yield/
	Balance			Interest			Cost			Balance			Interest			Cost			Balance			Interest			Cost
	(Dollars in thousands)
Interest-earning Assets:
Mortgage loans, net	$	4,598,898		$	50,462		4.39	%		$	4,590,429		$	50,206		4.37	%		$	4,467,349		$	49,612		4.44	%
Other loans, net		1,046,605			12,363		4.72				974,628			12,067		4.95				812,823			10,046		4.94
Total loans, net (1) (2)		5,645,503			62,825		4.45				5,565,057			62,273		4.48				5,280,172			59,658		4.52
Taxable securities:
Mortgage-backed
securities		574,756			3,765		2.62				585,892			4,225		2.88				542,192			3,800		2.80
Other securities		244,757			1,982		3.24				242,560			2,135		3.52				123,174			928		3.01
Total taxable securities		819,513			5,747		2.81				828,452			6,360		3.07				665,366			4,728		2.84
Tax-exempt securities: (3)
Other securities		65,709			706		4.30				56,064			595		4.25				123,472			1,078		3.49
Total tax-exempt securities		65,709			706		4.30				56,064			595		4.25				123,472			1,078		3.49
Interest-earning deposits
and federal funds sold		58,773			259		1.76				90,561			472		2.08				61,412			248		1.62
Total interest-earning
assets		6,589,498			69,537		4.22				6,540,134			69,700		4.26				6,130,422			65,712		4.29
Other assets		382,905									351,407									316,118
Total assets	$	6,972,403								$	6,891,541								$	6,446,540
Interest-bearing Liabilities:
Deposits:
Savings accounts	$	194,736			344		0.71			$	200,349			348		0.69			$	219,749			304		0.55
NOW accounts		1,347,145			5,654		1.68				1,541,956			6,641		1.72				1,336,873			4,416		1.32
Money market accounts		1,306,634			6,859		2.10				1,336,526			6,974		2.09				1,169,130			5,126		1.75
Certificate of deposit
accounts		1,573,535			9,321		2.37				1,516,358			8,802		2.32				1,487,366			7,453		2.00
Total due to depositors		4,422,050			22,178		2.01				4,595,189			22,765		1.98				4,213,118			17,299		1.64
Mortgagors' escrow
accounts		60,084			66		0.44				83,799			62		0.30				57,573			126		0.88
Total interest-bearing
deposits		4,482,134			22,244		1.99				4,678,988			22,827		1.95				4,270,691			17,425		1.63
Borrowings		1,395,606			8,196		2.35				1,146,199			6,739		2.35				1,185,176			6,540		2.21
Total interest-bearing
liabilities		5,877,740			30,440		2.07				5,825,187			29,566		2.03				5,455,867			23,965		1.76
Non interest-bearing
demand deposits		400,762									394,642									380,825
Other liabilities		129,646									111,088									73,432
Total liabilities		6,408,148									6,330,917									5,910,124
Equity		564,255									560,624									536,416
Total liabilities and
equity	$	6,972,403								$	6,891,541								$	6,446,540
Net interest income /
net interest rate spread (tax equivalent) (3)				$	39,097		2.15	%					$	40,134		2.23	%					$	41,747		2.53	%
Net interest-earning assets /
net interest margin (tax equivalent)	$	711,758					2.37	%		$	714,947					2.45	%		$	674,555					2.72	%
Ratio of interest-earning
assets to interest-bearing
liabilities							1.12	X								1.12	X								1.12	X
(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.9 million, $0.4 million and $1.2 million for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively.
(2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $1.3 million, $0.8 million and none for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018, respectively.
(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the three months ended September 30, 2019, June 30, 2019 and September 30, 2018 totaling $148,000, $125,000 and $226,000, respectively.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)
	For the nine months ended
	September 30, 2019									September 30, 2018
	Average						Yield/			Average						Yield/
	Balance			Interest			Cost			Balance			Interest			Cost
Interest-earning Assets:
Mortgage loans, net	$	4,602,896		$	151,513		4.39	%		$	4,473,422		$	143,397		4.27	%
Other loans, net		982,549			35,915		4.87				802,617			28,600		4.75
Total loans, net (1) (2)		5,585,445			187,428		4.47				5,276,039			171,997		4.35
Taxable securities:
Mortgage-backed
securities		578,020			12,238		2.82				533,394			11,061		2.76
Other securities		243,071			6,328		3.47				125,589			3,072		3.26
Total taxable securities		821,091			18,566		3.01				658,983			14,133		2.86
Tax-exempt securities: (3)
Other securities		60,010			1,895		4.21				123,882			3,243		3.49
Total tax-exempt securities		60,010			1,895		4.21				123,882			3,243		3.49
Interest-earning deposits
and federal funds sold		83,963			1,286		2.04				77,983			873		1.49
Total interest-earning
assets		6,550,509			209,175		4.26				6,136,887			190,246		4.13
Other assets		360,568									308,210
Total assets	$	6,911,077								$	6,445,097
Interest-bearing Liabilities:
Deposits:
Savings accounts	$	200,246			1,053		0.70			$	240,234			978		0.54
NOW accounts		1,458,801			18,326		1.67				1,439,997			10,928		1.01
Money market accounts		1,340,841			20,654		2.05				1,102,374			12,184		1.47
Certificate of deposit
accounts		1,537,981			26,326		2.28				1,450,885			20,034		1.84
Total due to depositors		4,537,869			66,359		1.95				4,233,490			44,124		1.39
Mortgagors' escrow
accounts		68,678			181		0.35				64,620			199		0.41
Total interest-bearing
deposits		4,606,547			66,540		1.93				4,298,110			44,323		1.37
Borrowings		1,231,760			21,476		2.32				1,173,272			18,472		2.10
Total interest-bearing
liabilities		5,838,307			88,016		2.01				5,471,382			62,795		1.53
Non interest-bearing
demand deposits		398,085									372,257
Other liabilities		115,476									68,857
Total liabilities		6,351,868									5,912,496
Equity		559,209									532,601
Total liabilities and
equity	$	6,911,077								$	6,445,097
Net interest income /
net interest rate spread (tax equivalent) (3)				$	121,159		2.25	%					$	127,451		2.60	%
Net interest-earning assets /
net interest margin (tax equivalent)	$	712,202					2.47	%		$	665,505					2.77	%
Ratio of interest-earning
assets to interest-bearing
liabilities							1.12	X								1.12	X
(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $1.7 million and $1.6 million for the nine months ended September 30, 2019 and 2018, respectively.
(2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $2.7 million and none for the nine months ended September 30, 2019 and September 30, 2018, respectively.
(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the nine months ended September 30, 2019 and September 30, 2018 totaling $398,000 and $681,000, respectively.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT COMPOSITION
(Unaudited)
																	September 2019 vs.							September 2019 vs.
	September 30,				June 30,				March 31,				December 31,				December 2018			September 30,				September 2018
(Dollars in thousands)		2019				2019				2019				2018			% Change				2018			% Change
Deposits
Non-interest bearing	$	421,786			$	413,813			$	401,064			$	413,747			1.9	%		$	398,606			5.8	%
Interest bearing:
Certificate of deposit
accounts		1,506,376				1,544,117				1,511,770				1,563,310			-3.6	%			1,562,962			-3.6	%
Savings accounts		193,497				196,820				201,811				210,022			-7.9	%			216,976			-10.8	%
Money market accounts		1,329,156				1,302,153				1,352,843				1,427,992			-6.9	%			1,223,640			8.6	%
NOW accounts		1,461,694				1,368,813				1,542,606				1,300,852			12.4	%			1,255,464			16.4	%
Total interest-bearing
deposits		4,490,723				4,411,903				4,609,030				4,502,176			-0.3	%			4,259,042			5.4	%
Total deposits	$	4,912,509			$	4,825,716			$	5,010,094			$	4,915,923			-0.1	%		$	4,657,648			5.5	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOANS
(Unaudited)
Loan Closings
		For the three months ended												For the nine months ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(In thousands)			2019				2019				2018				2019				2018
Multi-family residential		$	60,454			$	55,629			$	102,484			$	143,297			$	254,637
Commercial real estate			66,648				42,700				38,569				123,289				175,013
One-to-four family – mixed-use property			18,167				12,885				16,870				47,475				45,232
One-to-four family – residential			7,421				7,884				11,362				19,191				35,304
Co-operative apartments			1,817				300				-				2,117				1,500
Construction			5,761				18,715				6,008				30,377				30,627
Small Business Administration			121				2,255				344				2,705				2,539
Commercial business and other			237,754				156,029				133,188				524,113				361,207
Total		$	398,143			$	296,397			$	308,825			$	892,564			$	906,059

Loan Composition
																	September 2019 vs.							September 2019 vs.
	September 30,				June 30,				March 31,				December 31,				December 2018			September 30,				September 2018
(Dollars in thousands)		2019				2019				2019				2018			% Change				2018			% Change
Loans held for investment:
Multi-family residential	$	2,232,305			$	2,263,875			$	2,256,447			$	2,269,048			-1.6	%		$	2,235,370			-0.1	%
Commercial real estate		1,559,581				1,524,693				1,529,001				1,542,547			1.1	%			1,460,555			6.8	%
One-to-four family ―
mixed-use property		587,100				582,264				582,049				577,741			1.6	%			565,302			3.9	%
One-to-four family ― residential		184,432				184,024				188,615				190,350			-3.1	%			188,975			-2.4	%
Co-operative apartments		9,089				8,137				7,903				8,498			7.0	%			7,771			17.0	%
Construction		64,234				58,503				54,933				50,600			26.9	%			40,239			59.6	%
Small Business Administration		13,982				14,511				15,188				15,210			-8.1	%			14,322			-2.4	%
Taxi medallion		3,513				3,555				3,891				4,539			-22.6	%			6,078			-42.2	%
Commercial business and other		1,096,164				983,573				935,297				877,763			24.9	%			846,224			29.5	%
Net unamortized premiums
and unearned loan fees		15,363				15,278				15,422				15,188			1.2	%			15,226			0.9	%
Allowance for loan losses		(22,035	)			(21,510	)			(21,015	)			(20,945	)		5.2	%			(20,309	)		8.5	%
Net loans	$	5,743,728			$	5,616,903			$	5,567,731			$	5,530,539			3.9	%		$	5,359,753			7.2	%

Net Loans Activity
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2019				2019				2019				2018				2018
Loans originated and purchased	$	398,143			$	296,397			$	198,024			$	344,732			$	308,825
Principal reductions		(266,894	)			(243,263	)			(158,815	)			(173,061	)			(257,902	)
Loans sold		(3,553	)			(1,970	)			(1,043	)			-				(4,027	)
Loan charged-offs		(431	)			(1,114	)			(1,138	)			(211	)			(220	)
Foreclosures		-				(239	)			-				-				-
Net change in deferred fees and costs		85				(144	)			234				(38	)			(421	)
Net change in the allowance for loan losses		(525	)			(495	)			(70	)			(636	)			(89	)
Total loan activity	$	126,825			$	49,172			$	37,192			$	170,786			$	46,166

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NON-PERFORMING ASSETS and NET CHARGE-OFFS
(Unaudited)
		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)			2019				2019				2019				2018				2018
Loans 90 Days Or More Past Due
and Still Accruing:
Multi-family residential		$	445			$	-			$	-			$	-			$	-
Commercial real estate			-				-				-				-				111
Total			445				-				-				-				111
Non-accrual Loans:
Multi-family residential			3,132				2,008				2,009				2,410				862
Commercial real estate			872				1,488				1,050				1,379				1,398
One-to-four family - mixed-use property			683				1,752				1,305				928				795
One-to-four family - residential			5,050				5,411				5,708				6,144				6,610
Construction			-				-				950				-				-
Small Business Administration			1,151				1,224				1,227				1,267				1,395
Taxi medallion(1)			1,352				1,361				1,372				613				712
Commercial business and other(1)			2,020				2,458				2,114				3,512				761
Total			14,260				15,702				15,735				16,253				12,533
Total Non-performing Loans			14,705				15,702				15,735				16,253				12,644
Other Non-performing Assets:
Real estate acquired through foreclosure			239				239				-				-				-
Other asset acquired through foreclosure			35				35				35				35				35
Total			274				274				35				35				35
Total Non-performing Assets		$	14,979			$	15,976			$	15,770			$	16,288			$	12,679
Non-performing Assets to Total Assets			0.21	%			0.23	%			0.23	%			0.24	%			0.19	%
Allowance For Loan Losses to Non-performing Loans			149.8	%			137.0	%			133.6	%			128.9	%			160.6	%
(1) Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $2.2 million in 3Q19, $2.2 million in 2Q19, $2.5 million in 1Q19, $3.9 million in 4Q18, and $5.4 million in 3Q18 and non-accrual performing TDR commercial business loans totaling $1.0 million in 3Q19.

Net Charge-Offs (Recoveries)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)			2019				2019				2019				2018				2018
Multi-family residential		$	183			$	(10	)		$	(13	)		$	(4	)		$	18
Commercial real estate			-				(7	)			-				-				-
One-to-four family – mixed-use property			(140	)			(2	)			(85	)			(18	)			(36	)
One-to-four family – residential			(3	)			110				(4	)			(199	)			(258	)
Small Business Administration			(32	)			(16	)			(4	)			170				134
Taxi medallion			-				(50	)			(84	)			(143	)			40
Commercial business and other			150				954				1,092				(20	)			13
Total net loan charge-offs (recoveries)		$	158			$	979			$	902			$	(214	)		$	(89	)

 

Non-cash Fair Value Adjustments to GAAP Earnings

During the current year, core earnings were higher than GAAP earnings primarily due to the impact of non-cash net losses from fair value adjustments. These fair value adjustments relate primarily to swaps designated to protect against rising rates. As the swaps get closer to maturity the volatility in fair value adjustments will dissipate. Overall, the interest movement of the swaps is benefitting the core net interest margin while the fair value adjustments are offsetting the benefit. 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 Diluted EPS, Core ROAE, Core ROAA, Core Net Interest Income, Core Yield on Total Loans, Core Net Interest Margin 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.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS and CORE EARNINGS
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended										Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2019			2019			2018				2019			2018
GAAP income before income taxes	$	13,260		$	13,828		$	19,243			$	36,443		$	52,017
Net loss from fair value adjustments		2,124			1,956			170				6,160			537
Net loss on sale of securities		-			15			-				15			-
Life insurance proceeds		-			-			(2,222	)			(43	)		(2,998	)
Net gain on sale of assets		-			(770	)		-				(770	)		-
Net losses from fair value adjustments on qualifying hedges		1,262			818			-				2,717			-
Accelerated employee benefits upon Officer's death		-			-			149				455			149
Merger expense		510			-			-				510			-
Core income before taxes		17,156			15,847			17,340				45,487			49,705
Provision for income taxes for core income		3,312			3,771			2,010				10,116			9,565
Core net income	$	13,844		$	12,076		$	15,330			$	35,371		$	40,140
GAAP diluted earnings per common share	$	0.37		$	0.37		$	0.61			$	0.99		$	1.48
Net loss from fair value adjustments, net of tax		0.06			0.05			-				0.17			0.01
Net loss on sale of securities, net of tax		-			-			-				-			-
Life insurance proceeds		-			-			(0.08	)			-			(0.10	)
Net gain on sale of assets, net of tax		-			(0.02	)		-				(0.02	)		-
Net losses from fair value adjustments on qualifying hedges, net of tax		0.04			0.02			-				0.07			-
Accelerated employee benefits upon Officer's death, net of tax		-			-			-				0.01			-
Merger expense, net of tax		0.01			-			-				0.01			-
Core diluted earnings per common share1	$	0.48		$	0.42		$	0.54			$	1.23		$	1.39
Core net income, as calculated above	$	13,844		$	12,076		$	15,330			$	35,371		$	40,140
Average assets		6,972,403			6,891,541			6,446,540				6,911,077			6,445,097
Average equity		564,255			560,624			536,416				559,209			532,601
Core return on average assets2		0.79	%		0.70	%		0.95	%			0.68	%		0.83	%
Core return on average equity2		9.81	%		8.62	%		11.43	%			8.43	%		10.05	%
(1) Core diluted earnings per common share may not foot due to rounding.
(2) Ratios are calculated on an annualized basis.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN
To CORE NET INTEREST INCOME and NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)
	Three Months Ended										Nine Months Ended
	September 30,			June 30,			September 30,				September 30,			September 30,
		2019			2019			2018				2019			2018
GAAP net interest income	$	38,949		$	40,009		$	41,521			$	120,761		$	126,770
Net losses from fair value adjustments on qualifying hedges		1,262			818			-				2,717			-
Core net interest income	$	40,211		$	40,827		$	41,521			$	123,478		$	126,770
GAAP interest income on total loans, net	$	62,825		$	62,273		$	59,658			$	187,428		$	171,997
Net losses from fair value adjustments on qualifying hedges		1,262			818			-				2,717			-
Prepayment penalties received on loans		(1,697	)		(1,120	)		(1,944	)			(3,622	)		(4,308	)
Net recoveries of interest from non-accrual loans		(292	)		(519	)		(1,066	)			(1,525	)		(1,480	)
Core interest income on total loans, net	$	62,098		$	61,452		$	56,648			$	184,998		$	166,209
Average total loans, net	$	5,645,503		$	5,565,057		$	5,280,172			$	5,585,445		$	5,276,039
Core yield on total loans		4.40	%		4.42	%		4.29	%			4.42	%		4.20	%
Net interest income tax equivalent	$	39,097		$	40,134		$	41,747			$	121,159		$	127,451
Net losses from fair value adjustments on qualifying hedges		1,262			818			-				2,717			-
Prepayment penalties received on loans and securities		(1,697	)		(1,120	)		(1,944	)			(3,622	)		(4,410	)
Net recoveries of interest from non-accrual loans		(292	)		(519	)		(1,066	)			(1,525	)		(1,480	)
Net interest income used in calculation of Core net interest margin	$	38,370		$	39,313		$	38,737			$	118,729		$	121,561
Total average interest-earning assets	$	6,589,498		$	6,540,134		$	6,130,422			$	6,550,509		$	6,136,887
Core net interest margin		2.33	%		2.40	%		2.53	%			2.42	%		2.64	%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CALCULATION OF TANGIBLE STOCKHOLDERS’
COMMON EQUITY to TANGIBLE ASSETS
(Unaudited)
		September 30,			December 31,			September 30,
(Dollars in thousands)			2019			2018			2018
Total Equity		$	568,392		$	549,464		$	541,756
Less:
Goodwill			(16,127	)		(16,127	)		(16,127	)
Intangible deferred tax liabilities			286			290			291
Tangible Stockholders' Common Equity		$	552,551		$	533,627		$	525,920
Total Assets		$	7,110,895		$	6,834,176		$	6,539,543
Less:
Goodwill			(16,127	)		(16,127	)		(16,127	)
Intangible deferred tax liabilities			286			290			291
Tangible Assets		$	7,095,054		$	6,818,339		$	6,523,707
Tangible Stockholders' Common Equity to Tangible Assets			7.79	%		7.83	%		8.06	%

 

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

Susan K. Cullen
Senior Executive Vice President, Treasurer and Chief Financial Officer
Flushing Financial Corporation
(718) 961-5400