"In a quarter marked by shifting economic conditions, Flushing Financial Corporation has demonstrated strategic progress amidst ongoing challenges. While navigating an inverted yield curve and increased economic uncertainty, we achieved important improvements in our core operations. Our GAAP and Core Net Interest Margins expanded by 12 and 24 basis points QoQ, respectively, reflecting our proactive approach to challenging market conditions. Although we recorded a non-cash goodwill impairment charge of $17.6 million in the recent quarter, this accounting adjustment has no impact on our regulatory capital ratios or liquidity position. Our liquidity remains strong with $4.0 billion in undrawn lines and resources, and our TCE/TA¹ ratio stands at a solid 7.79% as of March 31, 2025. While asset quality metrics showed some softening, our strong underwriting discipline, low loan-to-value ratios, and high debt service coverage ratios position us to effectively manage credit risk going forward. As we move through 2025, we remain focused on our strategic priorities: improving profitability, maintaining credit discipline, and preserving strong liquidity and capital - foundations that will enable us to navigate the current economic environment while continuing to build long-term value for our shareholders, customers, and communities."

- John R. Buran, President and CEO

UNIONDALE, NY / ACCESS Newswire / April 29, 2025 / NIM Expansion and Average Deposit Growth. The Company reported first quarter 2025 GAAP Loss Per Share of $(0.29) and Core EPS of $0.23. The primary difference between GAAP and Core earnings was the goodwill impairment charge. Significantly, NIM expanded 12 bps on a GAAP basis QoQ to 2.51% and 24 bps on a Core basis to 2.49%. The NIM expansion was driven by the cost of funds declining 22 bps to 3.13%, partially offset by a 9 bps decline in the yield on interest earning assets to 5.51%. Average loans decreased 1.9% YoY and 1.6% QoQ, due to pricing and quality standards. Average deposits increased 6.8% YoY and 1.5% QoQ. Period end noninterest bearing deposits increased 5.9% YoY and 3.2% QoQ.

Credit Metrics Remain Manageable and Capital Stable QoQ. NPAs to assets were 71 bps compared to 57 bps the prior quarter. The increase primarily related to one previously identified multifamily relationship. Criticized and classified loans totaled 133 bps of gross loans compared to 107 bps in the prior quarter. The increase primarily relates to one office credit, which lost its primary tenant. Net charge-offs to average loans were 27 bps in 1Q25 compared to 28 bps in 4Q24 and primarily related to three commercial business relationships, which had reserves previously allocated. TCE/TA was 7.79% at March 31, 2025, compared to 7.82% at December 31, 2024.

Key Financial Metrics ²

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

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

1Q25 Highlights

• Net interest margin FTE increased 45 bps YoY and 12 bps QoQ to 2.51%; Core net interest margin FTE increased 43 bps YoY and 24 bps QoQ to 2.49%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, swap termination fees, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled 3 bps in 1Q25 compared to 5 bps in 1Q24 and 17 bps in 4Q24

• Average total deposits increased 6.8% YoY and 1.5% QoQ to $7.6 billion; Average noninterest bearing deposits increased 2.5% YoY, but decreased 1.7% QoQ and totaled 11.3% of total average deposits compared to 11.8% in 1Q24 and 11.7% in 4Q24; Average CDs were $2.6 billion, up 7.9% YoY, but down 3.2% QoQ

• Period end net loans decreased 1.2% YoY and 0.1% QoQ to $6.7 billion; Loan closings were $174.1 million, up 33.9% YoY, but down 22.7% QoQ; Back-to-back swap loan originations were $18.0 million compared to $58.5 million in 4Q24 and generated $0.3 million and $0.9 million of noninterest income, respectively; Loan pipeline increased 21.5% YoY and 6.3% QoQ to $211.4 million; Approximately 22% of the loan pipeline consists of back-to-back swap loans

• NPAs totaled $64.3 million (71 bps of assets) in 1Q25 compared to $46.3 million (53 bps) a year ago and $51.3 million (57 bps) in the prior quarter; the QoQ increase primarily related to a previously identified multifamily relationship

• Provision for credit losses was $4.3 million in 1Q25 compared to $0.6 million in 1Q24 and $6.4 million in 4Q24; Net charge-offs were $4.4 million in 1Q25 compared to $4,000 in 1Q24 and $4.7 million in 4Q24; Net charge-offs for 1Q25 were primarily related to three commercial business relationships, which had reserves previously allocated

• The Company had goodwill on its balance sheet primarily emanating from acquisitions completed over 20 years ago; Due to the declining stock price in the first quarter, the Company experienced a triggering event as defined by US GAAP; Consequently, a valuation of the goodwill was performed resulting in a non-cash, non-tax deductible impairment of $17.6 million ($0.51 per share); After this impairment, the Company has no goodwill remaining; This impairment had no impact on regulatory capital

• Tangible Common Equity to Tangible Assets was 7.79% at March 31, 2025, compared to 7.40% at March 31, 2024, and 7.82% at December 31, 2024; Tangible book value per share was $20.78 at March 31, 2025, compared to $22.39 a year ago and $20.97 for the prior quarter

Income Statement Highlights

Net interest income increased YoY and QoQ.

• Net Interest Margin FTE of 2.51% increased 45 bps YoY and 12 bps QoQ; The cost of funds declined 22 bps QoQ partially offset by a 9 bp decrease in the yield on interest earning assets

• Prepayment penalty income, swap termination fees, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled $0.6 million (3 bps to NIM) in 1Q25 compared to $3.8 million (17 bps to NIM) in 4Q24, $2.4 million (11 bps to NIM) in 3Q24, $0.7 million (3 bps to NIM) in 2Q24, and $1.0 million (5 bps to NIM) in 1Q24

• Excluding the items in the previous bullet, the net interest margin was 2.48% in 1Q25 compared to 2.22% in 4Q24, 1.99% in 3Q24, 2.02% in 2Q24, and 2.01% in 1Q24

The provision for credit losses increased YoY but declined QoQ.

• Net charge-offs (recoveries) were $4.4 million (27 bps of average loans) in 1Q25 compared to $4.7 million (28 bps of average loans) in 4Q24, $3.0 million (18 bps of average loans) in 3Q24, $(92,000) ((1) bp of average loans) in 2Q24, and $4,000 (less than 1 bp of average loans) in 1Q24; Net charge-offs in 1Q25 were primarily related to three commercial business relationships, which had reserves previously allocated

Noninterest income increased YoY and QoQ.

• Back-to-back swap loan closings of $18.0 million in 1Q25 (compared to $15.3 million in 1Q24 and $58.5 million in 4Q24) generated $0.3 million of noninterest income (compared to $0.2 million in 1Q24 and $0.9 million in 4Q24)

• Net gains (losses) from fair value adjustments were $(0.2) million (less than $0.01 per share, net of tax) in 1Q25, $(1.1) million ($(0.03) per share, net of tax) in 4Q24, $1.0 million ($0.03 per share, net of tax) in 3Q24, $0.1 million (less than $0.01 per share, net of tax) in 2Q24, and $(0.8) million ($(0.02) per share, net of tax) in 1Q24

• There were no gains on life insurance proceeds in 1Q25 compared to $0.3 million (about $0.01 per share) in 4Q24 and $1,000 (less than $0.01 per share) in 3Q24

• The Company sold $36.8 million of loans held for sale during 1Q25 and incurred an additional interest rate mark of $0.2 million due to the change in the loan pool from December 31, 2024; the 4Q24 balance sheet restructuring incurred a pre-tax loss of $76.4 million from the sale of investment securities and the transfer of loans to held for sale

• Absent the items in the previous three bullets and other immaterial adjustments, core noninterest income was $5.4 million in 1Q25, up 38.3% YoY but down 9.4% QoQ

Noninterest expense increased YoY and QoQ.

• Seasonal compensational expense was $1.6 million both in 1Q25 and 1Q24; 1Q25 seasonal compensational expenses were largely offset by expense reductions and other adjustments that are not expected to recur in 2Q25

• The Company recorded a non-recurring, non-cash goodwill impairment charge of approximately $17.6 million ($0.51 per share) in 1Q25 and a $2.6 million non-recurring pre-payment penalty from the prepayment of FHLB advances ($0.06 per share, net of tax) in 4Q24

• Excluding the effects of the prior bullet and other immaterial adjustments, core noninterest expenses were $42.0 million in 1Q25, up 5.4% YoY but down 1.9% QoQ

Provision (benefit) for income taxes was $3.9 million in 1Q25 compared to $1.3 million in 1Q24 and $(22.6) million in 4Q24.

• The effective tax rate was (65.2)% in 1Q25, 31.5% in 4Q24, 22.3% in 3Q24, 25.4% in 2Q24, and 26.3% in 1Q24

• The effective tax rate in 1Q25 was primarily related to the non-tax deductible goodwill impairment; 4Q24 was impacted by the increased benefit of permanent differences relative to pre-tax income (loss); 3Q24 includes approximately $0.5 million of discrete tax benefits

Balance Sheet, Credit Quality, and Capital Highlights

Average loans decreased YoY and QoQ.

• Period end net loans totaled $6.7 billion, down 1.2% YoY and 0.1% QoQ

• Total loan closings were $174.1 million in 1Q25, $225.2 million in 4Q24, $217.1 million in 3Q24, $126.0 million in 2Q24, and $130.0 million in 1Q24; the loan pipeline was $211.4 million at March 31, 2025, up 21.5% YoY and 6.3% QoQ

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

Average total deposits increased YoY and QoQ.

• Average noninterest bearing deposits increased 2.5% YoY, but decreased 1.7% QoQ and comprised 11.3% of average total deposits in 1Q25 compared to 11.8% a year ago

• Average CDs totaled $2.6 billion, up 7.9% YoY, but down 3.2% QoQ; approximately $601.9 million of retail CDs are due to mature at an average rate of 4.16% in 2Q25

Credit Quality: Nonperforming loans increased YoY and QoQ.

• Nonperforming loans were 69 bps of loans in 1Q25 compared to 36 bps in 1Q24 and 49 bps in 4Q24; the NPL increase in 1Q25 primarily relates to a multifamily lending relationship

• Criticized and classified loans were 133 bps of gross loans at 1Q25 compared to 107 bps at 4Q24, 100 bps at 3Q24, 113 bps at 2Q24, and 87 bps at 1Q24; the increase in 1Q25 primarily related to one office credit which lost its primary tenant

Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, decreased 9.7% and 7.2% YoY to $20.81 and $20.78, respectively.

• The Company paid a dividend of $0.22 per share in 1Q25; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration date or maximum dollar limit

• Tangible common equity to tangible assets was 7.79% at March 31, 2025, compared to 7.40% at March 31, 2024, and 7.82% at December 31, 2024

Conference Call Information

Conference Call Information:

• John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer and Treasurer, will host a conference call on Wednesday, April 30, 2025, at 9:30 AM (ET) to discuss the Company's first quarter results and strategy.

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

• Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=72gugnAx

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

• Replay Access Code: 6535774

• The conference call will be simultaneously webcast and archived

Second Quarter 2025 Earnings Release Date:

The Company plans to release Second Quarter 2025 financial results after the market close on July 24, 2025, followed by a conference call at 11:00 AM (ET) on July 25, 2025.

A detailed announcement will be issued prior to the second quarter's close confirming the date and the time of the release.

About Flushing Financial Corporation

Flushing Financial Corporation (Nasdaq:FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State-chartered commercial bank that operates banking offices in Queens, Brooklyn, Manhattan, and on Long Island. The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands.

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

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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.

#FF

- Statistical Tables Follow -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

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

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

⁽³⁾ Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.

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

⁽⁵⁾ Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets. See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

⁽⁶⁾ See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".

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