FOURTH QUARTER 2019¹ HIGHLIGHTS

• GAAP diluted EPS was $0.45, up 21.6% QoQ and 2.3% YoY
• Core diluted EPS was $0.41, down 14.6% QoQ and 24.1% YoY
• Net interest margin was 2.48%, up 11bps QoQ and down 9bps YoY
• Core net interest margin was 2.33%, unchanged QoQ and down 16bps YoY
• GAAP net interest income of $41.2 million, up 5.7% QoQ and 1.3% YoY
• Core net interest income of $40.1 million, down 0.2% QoQ and 1.2% YoY
• GAAP and core ROAE were 9.1% and 8.4%, respectively, compared with 7.6% and 9.8%, respectively in 3Q19
• GAAP and core ROAA were 0.7% and 0.7%, respectively, compared with 0.6% and 0.8%, respectively in 3Q19

FULL YEAR 2019¹ HIGHLIGHTS

• GAAP diluted EPS was $1.44, down 25.0% YoY
• Core diluted EPS was $1.65, down 14.9% YoY
• Net interest margin was 2.47%, down 25bps YoY
• Core net interest margin was 2.40%, down 20bps YoY
• GAAP net interest income of $161.9 million, down 3.3% YoY
• Core net interest income of $163.6 million, down 2.3% YoY
• GAAP and core ROAE were 7.4% and 8.4%, respectively, compared with 10.3% and 10.4%, respectively in 2018
• GAAP and core ROAA were 0.6% and 0.7%, respectively, compared with 0.9% and 0.9%, respectively in 2018
• Record C&I originations totaling $609.2 million
• Classified assets totaled $24.6 million, down 47.1% YoY

UNIONDALE, N.Y., Jan. 30, 2020 (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 fourth quarter and fiscal year ended December 31, 2019.

John R. Buran, President and Chief Executive Officer, stated, “We are pleased to report GAAP EPS of $0.45, an increase of 22% QoQ.  Net interest income increased 6% from 3Q19, as the net interest margin improved by 11bps.  The improvement in the net interest margin was driven by an 11bps decline in the cost of funds. The cost of funds has shown continuous improvement throughout the quarter. Concurrently, loan portfolio yields increased four basis points QoQ, as the negative effects on our floating rate C&I portfolio were recorded early in the quarter following the Fed decreasing rates. Our hedging strategies contributed positively to both net interest and non-interest income as the yield curve exhibited a small upward slope. We continue to see additional opportunities for repricing retail CDs downward as we have approximately $1 billion maturing in 2020, at an average cost of 2.20%, compared to the current average cost of new deposits of 1.53%. As a result of the above, our core net interest margin for 4Q19 was unchanged from 3Q19. Our strong credit metrics improved as classified loans hit the lowest level since 2008 and delinquent loans decreased to 34bps of the gross loan portfolio. Loan growth declined from 3Q19, however, we start 2020 with a pipeline of $325 million which exceeds the pipeline we started 2019 with by $128 million.”

“In preparation for 2020, we enhanced our distribution network.  We are currently in the testing phase of upgrading our mobile and online banking offerings, which are both components of our digital transformation strategy. We expect this digital transformation to significantly improve the customer experience for both business and consumer customers.  In December, we opened our 20^th branch. The new branch in Hicksville, NY will expand on our successful ethnic strategy in the Asian market. We also relocated our Bell Boulevard branch to better serve our growing Asian market.”

“Most importantly, is our pending acquisition of Empire Bancorp, Inc. The acquisition remains on track with an expected closing in the second quarter of 2020. All required applications and notifications have been filed with the respective agencies. As of December 31, 2019, our pro forma balance sheet would be approximately $8.0 billion in assets, $6.4 billion in loans, and $5.9 billion in deposits while expanding into the Suffolk County market. Suffolk County is one of the richest counties in the country with approximately 1.5 million people and 75,000 businesses.  Our plans for substantial cost reductions and improvements in the business remain on track.”

“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.”

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 4Q19 was $41.2 million, an increase of $0.5 million, or 1.3% YoY (4Q19 compared to 4Q18) and $2.2 million, or 5.7% QoQ (4Q19 compared to 3Q19).

• Net interest margin of 2.48%, decreased 9bps YoY, but increased 11bps QoQ
• Net interest spread of 2.25%, decreased 10bps YoY, but increased 10bps QoQ
  
• Yield on average interest-earning assets of 4.21%, decreased 4bps YoY and 1bp QoQ
  
• Cost of average interest-bearing liabilities of 1.96%, increased 6bps YoY, but decreased 11bps QoQ
  
• Cost of funds of 1.83%, increased 6bps YoY, but decreased 11bps QoQ
  
• Average balance of total interest-earning assets of $6,677.3 million, increased $312.9 million, or 4.9%, YoY and $87.8 million, or 1.3%, QoQ
  
• Net interest income includes prepayment penalty income from loans totaling $0.9 million in 4Q19, $1.7 million in 3Q19 and $0.9 million in 4Q18; recovered interest from delinquent loans of $0.4 million in 4Q19, $0.3 million in 3Q19 and $0.3 million in 4Q18; net gains from fair value adjustments on qualifying hedges totaling $1.0 million in 4Q19 and net losses from fair value adjustments on qualifying hedges totaling $1.3 million in 3Q19 and none in 4Q18
  
• Absent all above items noted in the preceding bullet, the yield on interest-earning assets was 4.07% in 4Q19, a decrease of 11bps from 3Q19 and 4Q18 and the net interest margin was 2.33% in 4Q19 and 3Q19, but decreased 16bps from 4Q18
  

Provision (benefit) for loan losses

The Company recorded a benefit of $0.3 million in 4Q19 compared to a provision of $0.7 million in 3Q19 and $0.4 million in 4Q18.

• 4Q19 benefit for loan losses was primarily due to a change in the loan portfolio mix
• Net charge-offs (recoveries) of ($34,000) in 4Q19, $0.2 million in 3Q19, and ($0.2) million in 4Q18
  
• We continue to finalize our Day One impact assumptions and expect the adoption of CECL to increase the current allowance between 5% and 15%
  
• The CECL standard will create additional volatility to our future provisions due to the assumptions used for the macroeconomic variables, loan composition and product mix, as they are all subject to change
  

Non-interest Income

Non-interest income for 4Q19 was $5.0 million, an increase of $6.0 million YoY, and $4.0 million QoQ

• Non-interest income included net gains from fair value adjustments of $0.8 million in 4Q19 and net losses from fair value adjustments of $2.1 million in 3Q19 and $3.6 million in 4Q18
• Additionally, non-interest income included net losses from the sale of securities of $1.9 million in 4Q18; net gains from sale of assets of $1.1 million in 4Q18; net gains on sale of loans of $0.5 million in 4Q19 and $0.2 million in 3Q19 and life insurance proceeds of $0.4 million in 4Q19
  
• Absent all above items, non-interest income was $3.3 million in 4Q19, a decrease of $0.1 million, or 1.6% YoY, but an increase of $0.4 million, or 12.3% QoQ
  

Non-interest Expense

Non-interest expense for 4Q19 was $29.6 million, an increase of $3.9 million, or 15.1 % YoY, and $3.6 million, or 13.8% QoQ

• Non-interest expense included the benefit of the FDIC small business assessment credit of $0.3 million in 4Q19 and $1.3 million in 3Q19
• Additionally, non-interest expense included the impact of the change in the discount rate used to calculate the Company’s liability of BOLI split dollar insurance; the discount rate decreased in 4Q19 resulting in additional expense totaling $1.2 million, while the discount rate increased in 4Q18 resulting in a decrease in expense totaling $0.8 million
  
• Lastly, non-interest expense included merger expenses totaling $1.1 million in 4Q19 and $0.5 million in 3Q19
  
• Absent all above items, non-interest expense was $27.7 million in 4Q19, an increase of $1.2 million, or 4.4% YoY, and $0.9 million, or 3.4% QoQ
  
• The ratio of non-interest expense to average assets was to 1.68% in 4Q19 compared to 1.49% in 3Q19 and 1.54% in 4Q18; absent all above items non-interest expense to average assets was 1.57% in 4Q19 compared to 1.54% in 3Q19 and 1.59% in 4Q18
  
• The efficiency ratio was 65.0% in 4Q19 compared to 58.9% in 3Q19 and 58.5% in 4Q18
  

Provision for Income Taxes

The provision for income taxes in 4Q19 was $4.0 million, an increase of $2.9 million YoY and $1.4 million QoQ.

• Pre-tax income increased by $3.4 million, or 25.4% YoY, and $3.6 million, or 27.4% QoQ
• The effective tax rates were 23.4% in 4Q19, 19.1% in 3Q19 and 7.8% in 4Q18
  
• 4Q18 reflects the release of a previously accrued tax liability of $1.8 million
  

Financial Condition Summary:

Loans:

• Net loans held for investment were $5,750.5 million reflecting an increase of 4.0% from December 31, 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 $241.0 million for 4Q19, or 89.3% of loan production
  
• Loan pipeline was $324.5 million at December 31, 2019, compared to $418.9 million at September 30, 2019 and $196.6 million at December 31, 2018
  
• The loan-to-value ratio on our portfolio of real estate dependent loans as of December 31, 2019 totaled 38.2%
  

The following table shows the weighted average rate received from loan closings for the periods indicated:

		For the three months ended
		December 31,		September 30,		December 31,
Loan type		2019		2019		2018
Mortgage loans		3.97	%	4.40	%	4.79	%
Non-mortgage loans		4.68	%	4.38	%	5.11	%
Total loans		4.19	%	4.39	%	4.90	%

Credit Quality:

• Non-performing loans totaled $13.3 million, a decrease of $3.0 million, or 18.4%, from $16.3 million at December 31, 2018
• Non-performing assets totaled $13.5 million, a decrease of $2.8 million, or 16.9%, from $16.3 million at December 31, 2018
  
• Classified assets totaled $24.6 million, a decrease of $21.9 million, or 47.1%, from $46.5 million at December 31, 2018
  
• Loans classified as troubled debt restructured (TDR) totaled $6.5 million, a decrease of $1.9 million, or 22.4%, 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 26.2% average loan-to-value for non-performing loans collateralized by real estate
  
• Net charge-offs totaled $2.0 million during the year ended December 31, 2019 driven mainly by charge-offs of one commercial business loan relationship
  

Capital Management:

• The Company and Bank, at December 31, 2019, were both well capitalized under all applicable regulatory requirements
• Through 4Q19, stockholders’ equity increased $30.2 million, or 5.5%, to $579.7 million primarily due to net income of $41.3 million, partially offset by the declaration and payment of dividends on the Company’s common stock
  
• During 4Q19, the Company did not repurchase any shares; as of December 31, 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 $20.59 at December 31, 2019, from $19.64 at December 31, 2018 and tangible book value per common share, a non-GAAP measure, increased to $20.02 at December 31, 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 Friday, January 31, 2020 at 9:30 AM (ET) to discuss the Company’s strategy and results for the fourth quarter
• Dial-in for Live Call: 1-877-509-5836
  
• Webcast: https://services.choruscall.com/links/ffic200131.html
  
• Dial-in for Replay: 1-877-344-7529
  
• Replay Access Code: 10137546
  
• The conference call will be simultaneously webcast and archived through January 31, 2021
  

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 (the “SEC”) from time to time, including those additional risk factors discussed under the heading “Risk Factors” in our Registration Statement on Form S-4/A as filed with the SEC on January 9, 2020, relating to the pending acquisition of Empire Bancorp, Inc.  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.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
(Unaudited)

		For the three months ended												For the twelve months ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2019				2019				2018				2019				2018
Interest and Dividend Income
Interest and fees on loans		$	64,316			$	62,825			$	60,722			$	251,744			$	232,719
Interest and dividends on securities:
Interest			5,528				6,287				6,376				25,535				23,022
Dividends			17				18				18				73				67
Other interest income			318				259				317				1,604				1,190
Total interest and dividend income			70,179				69,389				67,433				278,956				256,998
Interest Expense
Deposits			21,517				22,244				20,174				88,057				64,497
Other interest expense			7,483				8,196				6,623				28,959				25,095
Total interest expense			29,000				30,440				26,797				117,016				89,592
Net Interest Income			41,179				38,949				40,636				161,940				167,406
Provision (benefit) for loan losses			(318	)			683				422				2,811				575
Net Interest Income After Provision for Loan Losses			41,497				38,266				40,214				159,129				166,831
Non-interest Income
Banking services fee income			844				847				1,065				3,723				4,030
Net loss on sale of securities			—				—				(1,920	)			(15	)			(1,920	)
Net gain on sale of loans			489				204				—				870				168
Net gain on sale of assets			—				—				1,141				770				1,141
Net gain (loss) from fair value adjustments			807				(2,124	)			(3,585	)			(5,353	)			(4,122	)
Federal Home Loan Bank of New York stock dividends			1,026				834				946				3,589				3,576
Life insurance proceeds			419				—				—				462				2,998
Bank owned life insurance			984				1,000				779				3,534				3,099
Other income			469				278				588				1,891				1,367
Total non-interest income			5,038				1,039				(986	)			9,471				10,337
Non-interest Expense
Salaries and employee benefits			17,470				15,461				15,094				67,765				64,560
Occupancy and equipment			2,950				2,847				2,551				11,328				10,079
Professional services			2,120				2,167				1,821				8,358				8,360
FDIC deposit insurance			306				(589	)			472				869				2,115
Data processing			1,476				1,490				1,409				5,878				5,663
Depreciation and amortization			1,476				1,439				1,464				5,930				5,792
Other real estate owned/foreclosure expense (benefit)			59				48				(128	)			204				(94	)
Net gain from sales of real estate owned			—				—				—				—				(27	)
Other operating expenses			3,790				3,182				3,077				14,937				15,235
Total non-interest expense			29,647				26,045				25,760				115,269				111,683
Income Before Income Taxes			16,888				13,260				13,468				53,331				65,485
Provision for Income Taxes
Federal			3,058				2,457				349				10,439				8,574
State and local			899				79				697				1,613				1,821
Total taxes			3,957				2,536				1,046				12,052				10,395
Net Income		$	12,931			$	10,724			$	12,422			$	41,279			$	55,090
Basic earnings per common share		$	0.45			$	0.37			$	0.44			$	1.44			$	1.92
Diluted earnings per common share		$	0.45			$	0.37			$	0.44			$	1.44			$	1.92
Dividends per common share		$	0.21			$	0.21			$	0.20			$	0.84			$	0.80

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
(Unaudited)

		December 31,				September 30,				December 31,
		2019				2019				2018
ASSETS
Cash and due from banks		$	49,787			$	86,989			$	118,561
Securities held-to-maturity:
Mortgage-backed securities			7,934				7,939				7,953
Other securities			50,954				52,101				24,065
Securities available for sale:
Mortgage-backed securities			523,849				579,010				557,953
Other securities			248,651				246,465				264,702
Loans:
Multi-family residential			2,238,591				2,232,305				2,269,048
Commercial real estate			1,582,008				1,559,581				1,542,547
One-to-four family ― mixed-use property			592,471				587,100				577,741
One-to-four family ― residential			188,216				184,432				190,350
Co-operative apartments			8,663				9,089				8,498
Construction			67,754				64,234				50,600
Small Business Administration			14,445				13,982				15,210
Taxi medallion			3,309				3,513				4,539
Commercial business and other			1,061,478				1,096,164				877,763
Net unamortized premiums and unearned loan fees			15,271				15,363				15,188
Allowance for loan losses			(21,751	)			(22,035	)			(20,945	)
Net loans			5,750,455				5,743,728				5,530,539
Interest and dividends receivable			25,722				26,566				25,485
Bank premises and equipment, net			28,676				28,146				30,418
Federal Home Loan Bank of New York stock			56,921				65,280				57,282
Bank owned life insurance			157,713				158,604				131,788
Goodwill			16,127				16,127				16,127
Other real estate owned, net			239				239				—
Right of use asset			41,254				42,400				—
Other assets			59,494				57,301				69,303
Total assets		$	7,017,776			$	7,110,895			$	6,834,176
LIABILITIES
Due to depositors:
Non-interest bearing		$	435,072			$	421,786			$	413,747
Certificate of deposit accounts			1,437,890				1,506,376				1,563,310
Savings accounts			191,485				193,497				210,022
Money market accounts			1,592,011				1,329,156				1,427,992
NOW accounts			1,365,591				1,461,694				1,300,852
Total deposits			5,022,049				4,912,509				4,915,923
Mortgagors' escrow deposits			44,375				61,803				44,861
Borrowed funds			1,237,231				1,422,440				1,250,843
Operating lease liability			49,367				50,626				—
Other liabilities			85,082				95,125				73,085
Total liabilities			6,438,104				6,542,503				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 December 31, 2019, September 30, 2019 and December 31, 2018; 28,157,206 shares, 28,157,206 shares and 27,983,637 shares outstanding at December 31, 2019, September 30, 2019 and December 31, 2018, respectively)			315				315				315
Additional paid-in capital			226,691				225,471				222,720
Treasury stock (3,373,389 shares, 3,373,389 shares and 3,546,958 shares at December 31, 2019, September 30, 2019 and December 31, 2018, respectively)			(71,487	)			(71,487	)			(75,146	)
Retained earnings			433,960				427,062				414,327
Accumulated other comprehensive loss, net of taxes			(9,807	)			(12,969	)			(12,752	)
Total stockholders' equity			579,672				568,392				549,464
Total liabilities and stockholders' equity		$	7,017,776			$	7,110,895			$	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 twelve months ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2019			2019			2018			2019			2018
Per Share Data
Basic earnings per share		$	0.45		$	0.37		$	0.44		$	1.44		$	1.92
Diluted earnings per share		$	0.45		$	0.37		$	0.44		$	1.44		$	1.92
Average number of shares outstanding for:
Basic earnings per common share computation			28,723,077			28,730,161			28,422,215			28,709,106			28,709,378
Diluted earnings per common share computation			28,723,077			28,730,161			28,422,517			28,709,109			28,709,833
Shares outstanding			28,157,206			28,157,206			27,983,637			28,157,206			27,983,637
Book value per common share (1)		$	20.59		$	20.19		$	19.64		$	20.59		$	19.64
Tangible book value per common share (2)		$	20.02		$	19.62		$	19.07		$	20.02		$	19.07
Stockholders' Equity
Stockholders' equity		$	579,672		$	568,392		$	549,464		$	579,672		$	549,464
Tangible stockholders' equity			563,837			552,551			533,627			563,837			533,627
Average Balances
Total loans, net		$	5,726,635		$	5,645,503		$	5,438,418		$	5,621,033		$	5,316,968
Total interest-earning assets			6,677,325			6,589,498			6,364,456			6,582,473			6,194,248
Total assets			7,057,094			6,972,403			6,681,161			6,947,881			6,504,598
Total due to depositors			4,527,645			4,422,050			4,453,200			4,535,292			4,288,868
Total interest-bearing liabilities			5,912,284			5,877,740			5,654,560			5,856,953			5,517,552
Stockholders' equity			567,461			564,255			541,067			561,289			534,735
Performance Ratios (3)
Return on average assets			0.73	%		0.62	%		0.74	%		0.59	%		0.85	%
Return on average equity			9.11			7.60			9.18			7.35			10.30
Yield on average interest-earning assets (4)			4.21			4.22			4.25			4.25			4.16
Cost of average interest-bearing liabilities			1.96			2.07			1.90			2.00			1.62
Cost of funds			1.83			1.94			1.77			1.87			1.52
Net interest rate spread during period (4)			2.25			2.15			2.35			2.25			2.54
Net interest margin (4)			2.48			2.37			2.57			2.47			2.72
Non-interest expense to average assets			1.68			1.49			1.54			1.66			1.72
Efficiency ratio (5)			65.00			58.87			58.53			63.89			62.12
Average interest-earning assets to average interest-bearing liabilities			1.13	X		1.12	X		1.13	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 officer’s 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 twelve			At or for the twelve
		months ended			months ended
		December 31, 2019			December 31, 2018
Selected Financial Ratios and Other Data
Regulatory capital ratios (for Flushing Financial Corporation):
Tier 1 capital		$	615,500		$	586,582
Common equity Tier 1 capital			572,651			546,230
Total risk-based capital			712,251			682,527
Tier 1 leverage capital (well capitalized = 5%)			8.73	%		8.74	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)			10.95			10.98
Tier 1 risk-based capital (well capitalized = 8.0%)			11.77			11.79
Total risk-based capital (well capitalized = 10.0%)			13.62			13.72
Regulatory capital ratios (for Flushing Bank only):
Tier 1 capital		$	680,749		$	660,782
Common equity Tier 1 capital			680,749			660,782
Total risk-based capital			702,500			681,727
Tier 1 leverage capital (well capitalized = 5%)			9.65	%		9.85	%
Common equity Tier 1 risk-based capital (well capitalized = 6.5%)			13.02			13.28
Tier 1 risk-based capital (well capitalized = 8.0%)			13.02			13.28
Total risk-based capital (well capitalized = 10.0%)			13.43			13.70
Capital ratios:
Average equity to average assets			8.08	%		8.22	%
Equity to total assets			8.26			8.04
Tangible common equity to tangible assets (1)			8.05			7.83
Asset quality:
Non-accrual loans (2)		$	12,813		$	16,253
Non-performing loans			13,258			16,253
Non-performing assets			13,532			16,288
Net charge-offs			2,005			(19)
Asset quality ratios:
Non-performing loans to gross loans			0.23	%		0.29	%
Non-performing assets to total assets			0.19			0.24
Allowance for loan losses to gross loans			0.38			0.38
Allowance for loan losses to non-performing assets			160.73			128.60
Allowance for loan losses to non-performing loans			164.05			128.87
Full-service customer facilities			20			19

---

⁽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
		December 31, 2019								September 30, 2019								December 31, 2018
		Average						Yield/		Average						Yield/		Average						Yield/
		Balance			Interest			Cost		Balance			Interest			Cost		Balance			Interest			Cost
Interest-earning Assets:
Mortgage loans, net		$	4,628,854		$	51,927		4.49	%	$	4,598,898		$	50,462		4.39	%	$	4,555,895		$	49,789		4.37	%
Other loans, net			1,097,781			12,389		4.51			1,046,605			12,363		4.72			882,523			10,933		4.96
Total loans, net (1) (2)			5,726,635			64,316		4.49			5,645,503			62,825		4.45			5,438,418			60,722		4.47
Taxable securities:
Mortgage-backed securities			555,023			3,230		2.33			574,756			3,765		2.62			558,693			4,004		2.87
Other securities			244,075			1,774		2.91			244,757			1,982		3.24			184,592			1,586		3.44
Total taxable securities			799,098			5,004		2.50			819,513			5,747		2.81			743,285			5,590		3.01
Tax-exempt securities: (3)
Other securities			63,825			685		4.29			65,709			706		4.30			114,079			1,018		3.57
Total tax-exempt securities			63,825			685		4.29			65,709			706		4.30			114,079			1,018		3.57
Interest-earning deposits and federal funds sold			87,767			318		1.45			58,773			259		1.76			68,674			317		1.85
Total interest-earning assets			6,677,325			70,323		4.21			6,589,498			69,537		4.22			6,364,456			67,647		4.25
Other assets			379,769								382,905								316,705
Total assets		$	7,057,094							$	6,972,403							$	6,681,161
Interest-bearing Liabilities:
Deposits:
Savings accounts		$	192,818			325		0.67		$	194,736			344		0.71		$	213,091			392		0.74
NOW accounts			1,362,151			5,227		1.53			1,347,145			5,654		1.68			1,312,834			4,968		1.51
Money market accounts			1,456,676			7,165		1.97			1,306,634			6,859		2.10			1,348,873			6,523		1.93
Certificate of deposit accounts			1,516,000			8,752		2.31			1,573,535			9,321		2.37			1,578,402			8,276		2.10
Total due to depositors			4,527,645			21,469		1.90			4,422,050			22,178		2.01			4,453,200			20,159		1.81
Mortgagors' escrow accounts			74,751			48		0.26			60,084			66		0.44			71,108			15		0.08
Total interest-bearing deposits			4,602,396			21,517		1.87			4,482,134			22,244		1.99			4,524,308			20,174		1.78
Borrowings			1,309,888			7,483		2.29			1,395,606			8,196		2.35			1,130,252			6,623		2.34
Total interest-bearing liabilities			5,912,284			29,000		1.96			5,877,740			30,440		2.07			5,654,560			26,797		1.90
Non interest-bearing demand deposits			435,241								400,762								406,501
Other liabilities			142,108								129,646								79,033
Total liabilities			6,489,633								6,408,148								6,140,094
Equity			567,461								564,255								541,067
Total liabilities and equity		$	7,057,094							$	6,972,403							$	6,681,161
Net interest income / net interest rate spread (tax equivalent) (3)					$	41,323		2.25	%				$	39,097		2.15	%				$	40,850		2.35	%
Net interest-earning assets / net interest margin (tax equivalent)		$	765,041					2.48	%	$	711,758					2.37	%	$	709,896					2.57	%
Ratio of interest-earning assets to interest-bearing liabilities								1.13	X							1.12	X							1.13	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 $0.3 million, $0.9 million and $0.5 million for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018, respectively.
⁽²⁾ Loan interest income includes net gains from fair value adjustments on qualifying hedges of $1.0 million for the three months ended December 31, 2019 and net losses of $1.3 million for the three months ended September 30, 2019.
⁽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 December 31, 2019, September 30, 2019 and December 31, 2018 totaling $0.1 million, $0.1 million and $0.2 million, respectively.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in thousands)
(Unaudited)

		For the twelve months ended
		December 31, 2019									December 31, 2018
		Average						Yield/			Average						Yield/
		Balance			Interest			Cost			Balance			Interest			Cost
Interest-earning Assets:
Mortgage loans, net		$	4,609,439		$	203,440			4.41	%	$	4,494,210		$	193,186		4.30	%
Other loans, net			1,011,594			48,304			4.78			822,758			39,533		4.80
Total loans, net (1) (2)			5,621,033			251,744			4.48			5,316,968			232,719		4.38
Taxable securities:
Mortgage-backed securities			572,223			15,468			2.70			539,771			15,065		2.79
Other securities			243,324			8,102			3.33			140,461			4,658		3.32
Total taxable securities			815,547			23,570			2.89			680,232			19,723		2.90
Tax-exempt securities: (3)
Other securities			60,971			2,580			4.23			121,412			4,261		3.51
Total tax-exempt securities			60,971			2,580			4.23			121,412			4,261		3.51
Interest-earning deposits and federal funds sold			84,922			1,604			1.89			75,636			1,190		1.57
Total interest-earning assets			6,582,473			279,498			4.25			6,194,248			257,893		4.16
Other assets			365,408									310,350
Total assets		$	6,947,881								$	6,504,598
Interest-bearing Liabilities:
Deposits:
Savings accounts		$	198,374			1,378			0.69		$	233,392			1,370		0.59
NOW accounts			1,434,440			23,553			1.64			1,407,945			15,896		1.13
Money market accounts			1,370,038			27,819			2.03			1,164,505			18,707		1.61
Certificate of deposit accounts			1,532,440			35,078			2.29			1,483,026			28,310		1.91
Total due to depositors			4,535,292			87,828			1.94			4,288,868			64,283		1.50
Mortgagors' escrow accounts			70,209			229			0.33			66,255			214		0.32
Total interest-bearing deposits			4,605,501			88,057			1.91			4,355,123			64,497		1.48
Borrowings			1,251,452			28,959			2.31			1,162,429			25,095		2.16
Total interest-bearing liabilities			5,856,953			117,016			2.00			5,517,552			89,592		1.62
Non interest-bearing demand deposits			407,450									380,889
Other liabilities			122,189									71,422
Total liabilities			6,386,592									5,969,863
Equity			561,289									534,735
Total liabilities and equity		$	6,947,881								$	6,504,598
Net interest income / net interest rate spread  (tax equivalent) (3)					$	162,482			2.25	%				$	168,301		2.54	%
Net interest-earning assets / net interest margin (tax equivalent)		$	725,520						2.47	%	$	676,696					2.72	%
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 $2.0 million and $2.1 million for the year ended December 31, 2019 and 2018, respectively.
⁽²⁾ Loan interest income includes net losses from fair value adjustments on qualifying hedges of $1.7 million and none for the year ended December 31, 2019 and 2018, respectively.
⁽³⁾ Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the year ended December 31, 2019 and 2018 totaling $0.5 million and $0.9 million, respectively.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
DEPOSIT COMPOSITION
(Unaudited)

														December 2019 vs.						December 2019 vs.
		December 31,			September 30,			June 30,			March 31,			September 2019			December 31,			December 2018
(Dollars in thousands)		2019			2019			2019			2019			% Change			2018			% Change
Deposits
Non-interest bearing		$	435,072		$	421,786		$	413,813		$	401,064		3.1		%	$	413,747		5.2		%
Interest bearing:
Certificate of deposit accounts			1,437,890			1,506,376			1,544,117			1,511,770		(4.5)		%		1,563,310		(8.0)		%
Savings accounts			191,485			193,497			196,820			201,811		(1.0)		%		210,022		(8.8)		%
Money market accounts			1,592,011			1,329,156			1,302,153			1,352,843		19.8		%		1,427,992		11.5		%
NOW accounts			1,365,591			1,461,694			1,368,813			1,542,606		(6.6)		%		1,300,852		5.0		%
Total interest-bearing deposits			4,586,977			4,490,723			4,411,903			4,609,030		2.1		%		4,502,176		1.9		%
Total deposits		$	5,022,049		$	4,912,509		$	4,825,716		$	5,010,094		2.2		%	$	4,915,923		2.2		%

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
LOANS
(Unaudited)

Loan Closings

		For the three months ended									For the twelve months ended
		December 31,			September 30,			December 31,			December 31,			December 31,
(In thousands)		2019			2019			2018			2019			2018
Multi-family residential		$	104,310		$	60,454		$	85,095		$	247,607		$	339,732
Commercial real estate			55,047			66,648			95,772			178,336			270,785
One-to-four family – mixed-use property			18,653			18,167			28,924			66,128			74,156
One-to-four family – residential			5,833			7,421			7,356			25,024			42,660
Co-operative apartments			—			1,817			948			2,117			2,448
Construction			3,542			5,761			8,968			33,919			39,595
Small Business Administration			721			121			1,304			3,426			3,843
Commercial business and other			81,630			237,754			116,365			605,743			477,572
Total		$	269,736		$	398,143		$	344,732		$	1,162,300		$	1,250,791

Loan Composition

																		December 2019 vs.							December 2019 vs.
		December 31,				September 30,				June 30,				March 31,				September 2019			December 31,				December 2018
(Dollars in thousands)		2019				2019				2019				2019				% Change			2018				% Change
Loans held for investment:
Multi-family residential		$	2,238,591			$	2,232,305			$	2,263,875			$	2,256,447			0.3		%	$	2,269,048			(1.3	)	%
Commercial real estate			1,582,008				1,559,581				1,524,693				1,529,001			1.4		%		1,542,547			2.6		%
One-to-four family ― mixed-use property			592,471				587,100				582,264				582,049			0.9		%		577,741			2.5		%
One-to-four family ― residential			188,216				184,432				184,024				188,615			2.1		%		190,350			(1.1	)	%
Co-operative apartments			8,663				9,089				8,137				7,903			(4.7	)	%		8,498			1.9		%
Construction			67,754				64,234				58,503				54,933			5.5		%		50,600			33.9		%
Small Business Administration			14,445				13,982				14,511				15,188			3.3		%		15,210			(5.0	)	%
Taxi medallion			3,309				3,513				3,555				3,891			(5.8	)	%		4,539			(27.1	)	%
Commercial business and other			1,061,478				1,096,164				983,573				935,297			(3.2	)	%		877,763			20.9		%
Net unamortized premiums and unearned loan fees			15,271				15,363				15,278				15,422			(0.6	)	%		15,188			0.5		%
Allowance for loan losses			(21,751	)			(22,035	)			(21,510	)			(21,015	)		(1.3	)	%		(20,945	)		3.8		%
Net loans		$	5,750,455			$	5,743,728			$	5,616,903			$	5,567,731			0.1		%	$	5,530,539			4.0		%

Net Loans Activity

		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2019				2019				2019				2019				2018
Loans originated and purchased		$	269,736			$	398,143			$	296,397			$	198,024			$	344,732
Principal reductions			(255,977	)			(266,894	)			(243,263	)			(158,815	)			(173,061	)
Loans sold			(7,129	)			(3,553	)			(1,970	)			(1,043	)			—
Loan charge-offs			(95	)			(431	)			(1,114	)			(1,138	)			(211	)
Foreclosures			—				—				(239	)			—				—
Net change in deferred fees and costs			(92	)			85				(144	)			234				(38	)
Net change in the allowance for loan losses			284				(525	)			(495	)			(70	)			(636	)
Total loan activity		$	6,727			$	126,825			$	49,172			$	37,192			$	170,786

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NON-PERFORMING ASSETS and NET CHARGE-OFFS
(Unaudited)

		December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands)		2019			2019			2019			2019			2018
Loans 90 Days Or More Past Due and Still Accruing:
Multi-family residential		$	445		$	445		$	—		$	—		$	—
Total			445			445			—			—			—
Non-accrual Loans:
Multi-family residential			2,296			3,132			2,008			2,009			2,410
Commercial real estate			367			872			1,488			1,050			1,379
One-to-four family - mixed-use property			274			683			1,752			1,305			928
One-to-four family - residential			5,139			5,050			5,411			5,708			6,144
Construction			—			—			—			950			—
Small Business Administration			1,151			1,151			1,224			1,227			1,267
Taxi medallion(1)			1,641			1,352			1,361			1,372			613
Commercial business and other(1)			1,945			2,020			2,458			2,114			3,512
Total			12,813			14,260			15,702			15,735			16,253
Total Non-performing Loans			13,258			14,705			15,702			15,735			16,253
Other Non-performing Assets:
Real estate acquired through foreclosure			239			239			239			—			—
Other asset acquired through foreclosure			35			35			35			35			35
Total			274			274			274			35			35
Total Non-performing Assets		$	13,532		$	14,979		$	15,976		$	15,770		$	16,288
Non-performing Assets to Total Assets			0.19	%		0.21	%		0.23	%		0.23	%		0.24	%
Allowance For Loan Losses to Non-performing Loans			164.1	%		149.8	%		137.0	%		133.6	%		128.9	%

---

⁽¹⁾ Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $1.7 million in 4Q19, $2.2 million in 3Q19, $2.2 million in 2Q19, $2.5 million in 1Q19 and $3.9 million in 4Q18 and non-accrual performing TDR commercial business loans totaling $0.9 million in 4Q19 and $1.0 million in 3Q19.

Net Charge-Offs (Recoveries)

		Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2019				2019				2019				2019				2018
Multi-family residential		$	(14	)		$	183			$	(10	)		$	(13	)		$	(4	)
Commercial real estate			(30	)			—				(7	)			—				—
One-to-four family – mixed-use property			119				(140	)			(2	)			(85	)			(18	)
One-to-four family – residential			(3	)			(3	)			110				(4	)			(199	)
Small Business Administration			(8	)			(32	)			(16	)			(4	)			170
Taxi medallion			—				—				(50	)			(84	)			(143	)
Commercial business and other			(98	)			150				954				1,092				(20	)
Total net loan charge-offs (recoveries)		$	(34	)		$	158			$	979			$	902			$	(214	)

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

Non-cash Fair Value Adjustments to GAAP Earnings

During 2019, 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											Twelve Months Ended
		December 31,				September 30,			December 31,				December 31,				December 31,
		2019				2019			2018				2019				2019
GAAP income before income taxes		$	16,888			$	13,260		$	13,468			$	53,331			$	65,485
Net (gain) loss from fair value adjustments			(807	)			2,124			3,585				5,353				4,122
Net loss on sale of securities			—				—			1,920				15				1,920
Life insurance proceeds			(419	)			—			—				(462	)			(2,998	)
Net gain on sale of assets			—				—			(1,141	)			(770	)			(1,141	)
Net (gain) loss from fair value adjustments on qualifying hedges			(1,039	)			1,262			—				1,678				—
Accelerated employee benefits upon Officer's death			—				—			—				455				149
Merger expense			1,080				510			—				1,590				—
Core income before taxes			15,703				17,156			17,832				61,190				67,537
Provision for income taxes for core income			3,841				3,312			2,395				13,957				11,960
Core net income		$	11,862			$	13,844		$	15,437			$	47,233			$	55,577
GAAP diluted earnings per common share		$	0.45			$	0.37		$	0.44			$	1.44			$	1.92
Net (gain) loss from fair value adjustments, net of tax			(0.02	)			0.06			0.09				0.14				0.10
Net loss on sale of securities, net of tax			—				—			0.05				—				0.05
Life insurance proceeds			(0.01	)			—			—				(0.02	)			(0.10	)
Net gain on sale of assets, net of tax			—				—			(0.03	)			(0.02	)			(0.03	)
Net (gain) loss from fair value adjustments on qualifying hedges, net of tax			(0.03	)			0.04			—				0.05				—
Accelerated employee benefits upon Officer's death, net of tax			—				—			—				0.01				—
Merger expense, net of tax			0.03				0.01			—				0.04				—
Core diluted earnings per common share(1)		$	0.41			$	0.48		$	0.54			$	1.65			$	1.94
Core net income, as calculated above		$	11,862			$	13,844		$	15,437			$	47,233			$	55,577
Average assets			7,057,094				6,972,403			6,681,161				6,947,881				6,504,598
Average equity			567,461				564,255			541,067				561,289				534,735
Core return on average assets(2)			0.67		%		0.79	%		0.92		%		0.68		%		0.85		%
Core return on average equity(2)			8.36		%		9.81	%		11.41		%		8.42		%		10.39		%

---

⁽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												Twelve Months Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2019				2019				2018				2019				2018
GAAP net interest income		$	41,179			$	38,949			$	40,636			$	161,940			$	167,406
Net (gain) loss from fair value adjustments on qualifying hedges			(1,039	)			1,262				—				1,678				—
Core net interest income		$	40,140			$	40,211			$	40,636			$	163,618			$	167,406
GAAP interest income on total loans, net		$	64,316			$	62,825			$	60,722			$	251,744			$	232,719
Net (gain) loss from fair value adjustments on qualifying hedges			(1,039	)			1,262				—				1,678				—
Prepayment penalties received on loans			(926	)			(1,697	)			(892	)			(4,548	)			(5,200	)
Net recoveries of interest from non-accrual loans			(428	)			(292	)			(276	)			(1,953	)			(1,756	)
Core interest income on total loans, net		$	61,923			$	62,098			$	59,554			$	246,921			$	225,763
Average total loans, net		$	5,726,635			$	5,645,503			$	5,438,418			$	5,621,033			$	5,316,968
Core yield on total loans			4.33		%		4.40		%		4.38		%		4.39		%		4.25		%
Net interest income tax equivalent		$	41,323			$	39,097			$	40,850			$	162,482			$	168,301
Net (gain) loss from fair value adjustments on qualifying hedges			(1,039	)			1,262				—				1,678				—
Prepayment penalties received on loans and securities			(926	)			(1,697	)			(892	)			(4,548	)			(5,302	)
Net recoveries of interest from non-accrual loans			(428	)			(292	)			(276	)			(1,953	)			(1,756	)
Net interest income used in calculation of Core net interest margin		$	38,930			$	38,370			$	39,682			$	157,659			$	161,243
Total average interest-earning assets		$	6,677,325			$	6,589,498			$	6,364,456			$	6,582,473			$	6,194,248
Core net interest margin			2.33		%		2.33		%		2.49		%		2.40		%		2.60		%

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

		December 31,				September 30,				December 31,
(Dollars in thousands)		2019				2019				2018
Total Equity		$	579,672			$	568,392			$	549,464
Less:
Goodwill			(16,127	)			(16,127	)			(16,127	)
Intangible deferred tax liabilities			292				286				290
Tangible Stockholders' Common Equity		$	563,837			$	552,551			$	533,627
Total Assets		$	7,017,776			$	7,110,895			$	6,834,176
Less:
Goodwill			(16,127	)			(16,127	)			(16,127	)
Intangible deferred tax liabilities			292				286				290
Tangible Assets		$	7,001,941			$	7,095,054			$	6,818,339
Tangible Stockholders' Common Equity to Tangible Assets			8.05		%		7.79		%		7.83		%

__________________________________

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