SECOND QUARTER 20201 HIGHLIGHTS

-- GAAP diluted EPS was $0.63, compared to ($0.05) in 1Q20 and $0.37 in 2Q19 -- Core diluted EPS was $0.36 compared to $0.19 in 1Q20 and $0.42 in 2Q19 -- Net interest margin was 2.87%, up 43bps QoQ and 42bps YoY -- Core net interest margin was 2.85%, up 36bps QoQ and 45bps YoY -- Record GAAP net interest income of $48.7 million, up 19.3% QoQ and 21.8% YoY -- Record Core net interest income of $49.1 million, up 14.4% QoQ and 20.2% YoY -- GAAP and core ROAE 13.1% and 7.4%, respectively, compared with (1.0)% and 3.8%, respectively in 1Q20 -- GAAP and core ROAA were 1.0% and 0.6%, respectively, compared with (0.1)% and 0.3%, respectively in 1Q20 -- Loan pipeline remains strong at $310.8 million -- Provision for credit losses of $9.6 million, $0.25 after-tax per diluted common share, driven mainly by economic conditions arising from COVID-19 pandemic -- Net charge-offs were $1.0 million, compared to $1.1 million in 1Q20

UNIONDALE, N.Y., July 21, 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 second quarter ended June 30, 2020.

John R. Buran, President and Chief Executive Officer stated, “I want to thank our employees for their outstanding work during these unprecedented times. The health and welfare of our employees and customers remain our highest priority.”

Mr. Buran continued, “We are pleased to announce our second quarter earnings totaled $18.3 million, or $0.63 per diluted common share. Our GAAP earnings for the quarter were positively impacted by two items. First, we executed on our strategic objective to manage our cost of funds and improve funding mix. We achieved record net interest income as a result of the Company’s quick response to the Fed decreasing interest rates in late March resulting in cost of funds decreasing 62 basis points from the previous quarter with additional opportunity to further reduce funding costs in the third quarter. Adding to the reduction of cost of funds in the second quarter, core deposits increased 7% while the net interest margin expanded 43 basis points from the previous quarter.”

“The second item positively affecting our GAAP net earnings was the non-cash fair value adjustment on our junior subordinated debt of $10.3 million, or $0.27 per diluted common share, after-tax, due to market conditions.”

“Core earnings for the quarter totaled $10.3 million, or $0.36 per diluted common share. Pre-provision pre-tax net revenue totaled $33.7 million, an increase of $28.1 million from the previous quarter. Non-performing assets at the end of the quarter were 29 basis points of total assets. Our loan portfolio is 88% collateralized by real estate with an average loan to value of less than 40%. Despite the current economic environment due to COVID-19, we have a long history and foundation built upon disciplined underwriting, good credit quality and a resilient seasoned loan portfolio with strong asset protection.”

“We continue to actively assist our customers during these turbulent times. As a result of COVID-19, we granted forbearances to our customers. Originally, we granted forbearances for one to six months. In anticipation of an extended relief period, we have most recently predominately granted forbearance of principal and interest for six months. At the height of the request period, April and May 2020, COVID-19 forbearances peaked at $1.5 billion. By June 30, 2020, we reduced that number to $1.3 billion comprised of 82% real estate loans. Through July 10th, 63% of the $146 million in loans scheduled to return to regularly scheduled payments have done so.”

“Additionally, we have actively participated in the SBA Paycheck Protection Program originating $93 million of these loans. We are one of nine banks in the State of New York participating in the Main Street Lending Program. We are also a proud participant in the FHLBNY Small Business Recovery Grant Program, helping our customers and communities navigate through the current environment.”

“During this pandemic, our customers have utilized our enhanced technology platform with new mobile banking capabilities that went live in March 2020. Mobile deposits have increased over 13% from April 2020 through June 2020. Similarly, the usage of ATMs has increased with over 75% of all transactions now completed via ATM. The number of accounts enrolling in online banking and opening new accounts online has also grown during the current quarter to 19% of retail account openings.”

“Given the current economic environment at the end of the quarter, we adjusted our economic forecast in our current expected credit loss (“CECL”) model resulting in a provision for credit losses of $9.6 million, or $0.25 per diluted share, after-tax. Our allowance for credit losses stands at 61 basis points of gross loans and 182% of non-performing loans. As a reminder, our maximum charge-offs were only 64 basis points in the midst of the Great Recession while industry peak charge-offs were nearly 5x.”

“As we previously disclosed, the pending acquisition of Empire Bancorp was delayed due to the severe instability and volatility in the U.S. financial and stock markets caused by the pandemic. The Company continues to believe that the merger offers benefits to both shareholders and customers of Empire Bancorp and Flushing. We will be refraining from any additional comments at this time.”

Mr. Buran concluded by saying, “Overall, we made good progress in the second quarter to achieve our strategic objectives. Importantly, the Company remains committed to building and fostering an environment of diversity and inclusion in our workforce and the communities we serve. In light of recent events, we have formed a Diversity and Inclusion Committee chaired by the EVP/Director of Human Resources, reporting directly to me. The role of this Committee is to make recommendations ensuring Flushing Financial continues to provide a safe and inclusive environment for all employees and ensure our message of inclusion is supported by our actions and participation in community organizations.”

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 2Q20 was $48.7 million, an increase of $8.7 million, or 21.8% YoY and $7.9 million, or 19.3% QoQ.

-- Net interest margin of 2.87%, increased 42bps YoY and 43bps QoQ -- Net interest spread of 2.72%, increased 49bps YoY and 48bps QoQ -- Yield on average interest-earning assets of 3.81%, decreased 45bps YoY and 17bps QoQ -- Cost of average interest-bearing liabilities of 1.09%, decreased 94bpsYoY and 65bps QoQ -- Cost of funds of 0.99%, decreased 91bps YoY and 62bps QoQ -- Average balance of total interest-earning assets of $6,809.9 million, increased $269.7 million, or 4.1%, YoY and $90.0 million, or 1.3%, QoQ -- Net interest income includes prepayment penalty income from loans totaling $0.7 million in 2Q20, $0.8 million in 1Q20 and $1.1 million in 2Q19; recovered interest from delinquent loans of $0.1 million in 2Q20, $0.4 million in 1Q20 and $0.5 million in 2Q19; net losses from fair value adjustments on qualifying hedges totaling $0.4 million in 2Q20, $2.1 million in 1Q20 and $0.8 million in 2Q19 -- Absent all above items noted in the preceding bullet, the net interest margin was 2.85% in 2Q20, an increase of 45bps YoY and 36bps QoQ

Provision for Credit Losses

The Company recorded a provision for credit losses of $9.6 million in 2Q20 compared to a provision of $7.2 million in 1Q20 and a provision of $1.5 million in 2Q19.

-- 2Q20 and 1Q20 provision for credit losses were primarily driven by the negative economic forecast resulting from the impact of COVID-19 -- Net charge-offs of $1.0 million in 2Q20, $1.1 million in 1Q20 and $1.0 million in 2Q19

Non-interest Income

Non-interest income for 2Q20 was $13.7 million, an increase of $11.3 million YoY, and $16.6 million QoQ.

-- Non-interest income included net gains from fair value adjustments of $10.2 million in 2Q20; net losses from fair value adjustments of $6.0 million and $2.0 million in 1Q20 and 2Q19, respectively -- Additionally, non-interest income included life insurance proceeds totaling $0.7 million in 2Q20, net gain on sale of assets of $0.8 million and capital gain of $0.5 million, both in 2Q19 -- Absent all above items, non-interest income was $2.9 million in 2Q20, a decrease of $0.2 million, or 7.7% YoY, and $0.3 million, or 8.2% QoQ

Non-interest Expense

Non-interest expense for 2Q20 was $28.8 million, a decrease of $3.6 million, or 11.2 % QoQ, and an increase of $1.6 million or 5.9% YoY.

-- Non-interest expense improved QoQ primarily due to 1Q20 including seasonal expenses, and increased YoY primarily due to Company growth -- Additionally, non-interest expense included merger expenses totaling $0.2 million in 2Q20 and $0.9 million in 1Q20 -- The ratio of non-interest expense to average assets was 1.60% in 2Q20 compared to 1.82% in 1Q20 and 1.58% in 2Q19 -- The efficiency ratio improved to 54.9% in 2Q20 compared to 68.2% in 1Q20 and 61.1% in 2Q19

Provision for Income Taxes

The provision for income taxes in 2Q20 was $5.8 million, compared to benefit of $0.2 million in 1Q20 and a provision of $3.3 million in 2Q19.

-- Pre-tax income increased by $10.3 million YoY and $25.7 million QoQ -- The effective tax rates were 24.1% in 2Q20, 12.9% in 1Q20 and 23.7% in 2Q19

Financial Condition Summary:

Loans:

-- Net loans held for investment were $5,946.6 million reflecting an increase of 3.4% from December 31, 2019, as we continue to focus on the origination of full banking relationship loans through C&I loans, multi-family loans and commercial real estate -- SBA Paycheck Protection Program (“PPP”) closings totaled $93.2 million in 2Q20 -- Loan closings of commercial business loans, multi-family loans and commercial real estate totaled $126.9 million for 2Q20, or 90.3% of loan production, excluding PPP closings -- Loan pipeline was $310.8 million at June 30, 2020, compared to $324.5 million at December 31, 2019

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

For the three months ended --------------------------------- June 30, March 31, June 30, Loan type 2020 2020 2019 ------------------- -------- --------- -------- Mortgage loans 3.79 % 3.93 % 4.75 % Non-mortgage loans 1.99 % 4.23 % 5.01 % -------- --------- -------- Total loans 2.62 % 4.03 % 4.89 % -------- --------- -------- Excluding PPP loans 3.71 % 4.03 % 4.89 % -------- --------- --------

Credit Quality:

-- Non-performing loans totaled $20.2 million, an increase of $6.9 million, or 52.3%, from $13.3 million at December 31, 2019 -- Non-performing assets totaled $20.4 million, an increase of $6.9 million, or 51.0%, from $13.5 million at December 31, 2019 -- Classified assets totaled $25.1 million, an increase of $0.5 million, or 2.0%, from $24.6 million at December 31, 2019 -- Loans classified as troubled debt restructured (TDR) totaled $6.0 million, a decrease of $0.5 million, or 8.2%, from $6.5 million at December 31, 2019 -- 799 active COVID-19 forbearances outstanding at July 10th for loans with a combined principal balance of $1.3 billion at the time of forbearance; total combined deferment of $36.4 million in principal, interest and escrow -- Over 88% of our gross loans are collateralized by real estate -- The loan-to-value ratio on our portfolio of real estate dependent loans as of June 30, 2020 totaled 38.1% -- Net charge-offs totaled $1.0 million

Capital Management:

-- The Company and Bank, at June 30, 2020, were both well capitalized under all applicable regulatory requirements -- Through 2Q20, stockholders’ equity decreased $7.8 million, or 1.3%, from December 31, 2019, to $571.9 million primarily due to unrealized losses in the fair value of securities and interest rate swaps, coupled with the declaration and payment of dividends on the Company’s common stock, partially offset by net income of $16.9 million -- During 2Q20, the Company did not repurchase any shares; as of June 30, 2020, up to 284,806 shares remained subject to repurchase under the authorized stock repurchase program, which has no expiration or maximum dollar limit -- Book value per common share was $20.27 at June 30, 2020, compared to $20.59 at December 31, 2019 -- Tangible book value per common share, a non-GAAP measure, was $19.71 at June 30, 2020, compared to $20.02 at December 31, 2019

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, July 22, 2020 at 9:30 AM (ET) to discuss the Company’s strategy and results for the second quarter -- Dial-in for Live Call: 1-877-509-5836 -- Webcast: https://services.choruscall.com/links/ffic200722.html -- Dial-in for Replay: 1-877-344-7529 -- Replay Access Code: 10138500 -- The conference call will be simultaneously webcast and archived through July 22, 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, 2019 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 six months ended ---------------------------------- ------------------------ June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 ---------- ---------- ---------- ----------- ----------- Interest and Dividend Income Interest and fees on loans $ 60,557 $ 61,109 $ 62,273 $ 121,666 $ 124,603 Interest and dividends on securities: Interest 4,182 5,256 6,811 9,438 13,720 Dividends 11 15 19 26 38 Other interest income 22 290 472 312 1,027 - ------ - - ------ - - ------ - - ------- - - ------- - Total interest and dividend income 64,772 66,670 69,575 131,442 139,388 - ------ - - ------ - - ------ - - ------- - - ------- - Interest Expense Deposits 9,971 18,778 22,827 28,749 44,296 Other interest expense 6,084 7,066 6,739 13,150 13,280 - ------ - - ------ - - ------ - - ------- - - ------- - Total interest expense 16,055 25,844 29,566 41,899 57,576 - ------ - - ------ - - ------ - - ------- - - ------- - Net Interest Income 48,717 40,826 40,009 89,543 81,812 Provision for credit losses 9,619 7,178 1,474 16,797 2,446 - ------ - - ------ - - ------ - - ------- - - ------- - Net Interest Income After Provision for Credit 39,098 33,648 38,535 72,746 79,366 Losses - ------ - - ------ - - ------ - - ------- - - ------- - Non-interest Income Banking services fee income 944 798 1,059 1,742 2,032 Net loss on sale of securities (54 ) (37 ) (15 ) (91 ) (15 ) Net gain on sale of loans — 42 114 42 177 Net gain on sale of assets — — 770 — 770 Net gain (loss) from fair value adjustments 10,205 (5,993 ) (1,956 ) 4,212 (4,036 ) Federal Home Loan Bank of New York stock 881 964 826 1,845 1,729 dividends Life insurance proceeds 659 — — 659 43 Bank owned life insurance 932 943 810 1,875 1,550 Other income 170 419 843 589 1,144 - ------ - - ------ - - ------ - - ------- - - ------- - Total non-interest income (loss) 13,737 (2,864 ) 2,451 10,873 3,394 - ------ - - ------ - - ------ - - ------- - - ------- - Non-interest Expense Salaries and employee benefits 16,184 18,620 15,668 34,804 34,834 Occupancy and equipment 2,827 2,840 2,742 5,667 5,531 Professional services 1,985 2,862 1,806 4,847 4,071 FDIC deposit insurance 737 650 667 1,387 1,152 Data processing 1,813 1,694 1,420 3,507 2,912 Depreciation and amortization 1,555 1,536 1,497 3,091 3,015 Other real estate owned/foreclosure expense 45 (164 ) 20 (119 ) 97 (benefit) Net loss from sales of real estate owned — 31 — 31 — Other operating expenses 3,609 4,311 3,338 7,920 7,965 - ------ - - ------ - - ------ - - ------- - - ------- - Total non-interest expense 28,755 32,380 27,158 61,135 59,577 - ------ - - ------ - - ------ - - ------- - - ------- - Income (Loss) Before Income Taxes 24,080 (1,596 ) 13,828 22,484 23,183 - ------ - - ------ - - ------ - - ------- - - ------- - Provision (Benefit) for Income Taxes Federal 4,307 989 2,981 5,296 4,924 State and local 1,501 (1,195 ) 291 306 635 - ------ - - ------ - - ------ - - ------- - - ------- - Total taxes 5,808 (206 ) 3,272 5,602 5,559 - ------ - - ------ - - ------ - - ------- - - ------- - Net Income (Loss) $ 18,272 $ (1,390 ) $ 10,556 $ 16,882 $ 17,624 - ------ - - ------ - - ------ - - ------- - - ------- - Basic earnings (loss) per common share $ 0.63 $ (0.05 ) $ 0.37 $ 0.58 $ 0.61 Diluted earnings (loss) per common share $ 0.63 $ (0.05 ) $ 0.37 $ 0.58 $ 0.61 Dividends per common share $ 0.21 $ 0.21 $ 0.21 $ 0.42 $ 0.42

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share data) (Unaudited) June 30, March 31, December 31, 2020 2020 2019 ------------- ------------- ------------- ASSETS Cash and due from banks $ 84,754 $ 157,184 $ 49,787 Securities held-to-maturity: Mortgage-backed securities 7,924 7,929 7,934 Other securities 50,078 50,225 50,954 Securities available for sale: Mortgage-backed securities 442,507 489,556 523,849 Other securities 232,803 225,856 248,651 Loans: Multi-family residential 2,285,555 2,272,343 2,238,591 Commercial real estate 1,646,085 1,664,934 1,582,008 One-to-four family ― mixed-use property 591,347 592,109 592,471 One-to-four family ― residential 184,741 189,774 188,216 Co-operative apartments 8,423 8,493 8,663 Construction 69,433 66,727 67,754 Small Business Administration 106,813 14,076 14,445 Taxi medallion 3,269 3,281 3,309 Commercial business and other 1,073,623 1,104,967 1,061,478 Net unamortized premiums and unearned loan fees 13,986 15,384 15,271 Allowance for loan losses (36,710 ) (28,098 ) (21,751 ) - --------- - - --------- - - --------- - Net loans 5,946,565 5,903,990 5,750,455 Interest and dividends receivable 30,219 25,526 25,722 Bank premises and equipment, net 27,018 27,899 28,676 Federal Home Loan Bank of New York stock 56,400 74,000 56,921 Bank owned life insurance 157,779 158,655 157,713 Goodwill 16,127 16,127 16,127 Other real estate owned, net 208 208 239 Right of use asset 38,303 39,729 41,254 Other assets 71,974 68,526 59,494 - --------- - - --------- - - --------- - Total assets $ 7,162,659 $ 7,245,410 $ 7,017,776 - --------- - - --------- - - --------- - LIABILITIES Due to depositors: Non-interest bearing $ 581,881 $ 489,198 $ 435,072 Certificate of deposit accounts 1,135,977 1,172,381 1,437,890 Savings accounts 184,895 192,192 191,485 Money market accounts 1,474,880 1,597,109 1,592,011 NOW accounts 1,672,241 1,377,555 1,365,591 - --------- - - --------- - - --------- - Total deposits 5,049,874 4,828,435 5,022,049 Mortgagors' escrow deposits 48,525 73,051 44,375 Borrowed funds 1,305,187 1,617,582 1,237,231 Operating lease liability 45,897 47,726 49,367 Other liabilities 141,255 128,933 85,082 - --------- - - --------- - - --------- - Total liabilities 6,590,738 6,695,727 6,438,104 - --------- - - --------- - - --------- - 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 June 30, 2020, March 31, 2020 and December 31, 2019; 28,217,434 shares, 28,213,602 shares and 315 315 315 28,157,206 shares outstanding at June 30, 2020, March 31, 2020 and December 31, 2019, respectively) Additional paid-in capital 226,901 225,893 226,691 Treasury stock (3,313,161 shares, 3,316,993 shares and 3,373,389 shares at June 30, 2020, March 31, 2020 and December 31, 2019, (69,436 ) (69,540 ) (71,487 ) respectively) Retained earnings 437,663 425,455 433,960 Accumulated other comprehensive loss, net of taxes (23,522 ) (32,440 ) (9,807 ) - --------- - - --------- - - --------- - Total stockholders' equity 571,921 549,683 579,672 - --------- - - --------- - - --------- - Total liabilities and stockholders' equity $ 7,162,659 $ 7,245,410 $ 7,017,776 - --------- - - --------- - - --------- -

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 six months ended -------------------------------------------- --------------------------- June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 ------------ --------------- ------------ ------------ ------------ Per Share Data Basic earnings (loss) per share $ 0.63 $ (0.05 ) $ 0.37 $ 0.58 $ 0.61 Diluted earnings (loss) per $ 0.63 $ (0.05 ) $ 0.37 $ 0.58 $ 0.61 share Average number of shares outstanding for: Basic earnings per common share 28,866,984 28,852,819 28,760,816 28,859,901 28,691,303 computation Diluted earnings per common 28,866,984 28,852,819 28,760,816 28,859,901 28,691,309 share computation Shares outstanding 28,217,434 28,213,602 28,187,922 28,217,434 28,187,922 Book value per common share (1) $ 20.27 $ 19.48 $ 20.06 $ 20.27 $ 20.06 Tangible book value per common $ 19.71 $ 18.92 $ 19.50 $ 19.71 $ 19.50 share (2) Stockholders' Equity Stockholders' equity $ 571,921 $ 549,683 $ 565,390 $ 571,921 $ 565,390 Tangible stockholders' equity 556,086 533,848 549,549 556,086 549,549 Average Balances Total loans, net $ 5,946,412 $ 5,794,866 $ 5,565,057 $ 5,870,640 $ 5,554,919 Total interest-earning assets 6,809,835 6,719,857 6,540,134 6,764,846 6,530,692 Total assets 7,206,059 7,106,998 6,891,541 7,156,529 6,879,905 Total due to depositors 4,395,228 4,578,793 4,595,189 4,487,011 4,596,738 Total interest-bearing 5,912,774 5,951,925 5,825,187 5,932,350 5,818,263 liabilities Stockholders' equity 557,414 576,597 560,624 567,006 556,645 Performance Ratios(3) Return on average assets 1.01 % (0.08 )% 0.61 % 0.47 % 0.51 % Return on average equity 13.11 (0.96 ) 7.53 5.95 6.33 Yield on average 3.81 3.98 4.26 3.89 4.28 interest-earning assets (4) Cost of average interest-bearing 1.09 1.74 2.03 1.41 1.98 liabilities Cost of funds 0.99 1.61 1.90 1.30 1.85 Net interest rate spread during 2.72 2.24 2.23 2.48 2.30 period(4) Net interest margin (4) 2.87 2.44 2.45 2.66 2.51 Non-interest expense to average 1.60 1.82 1.58 1.71 1.73 assets Efficiency ratio (5) 54.92 68.21 61.06 61.16 67.36 Average interest-earning assets to average interest-bearing 1.15 X 1.13 X 1.12 X 1.14 X 1.12 X liabilities

—————————————————————(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 gains and losses from fair value adjustments on qualifying hedges) and non-interest income (excluding life insurance proceeds, net gains and losses from the sale of securities and fair value adjustments).

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in thousands) (Unaudited) At or for At or for At or for the six the year the six months ended months ended ended June 30, December June 30, 2020 31, 2019 2019 --------- --------- --------- Selected Financial Ratios and Other Data ----------------------------------------------------------------- Regulatory capital ratios (for Flushing Financial Corporation): Tier 1 capital $ 617,620 $ 615,500 $ 600,730 Common equity Tier 1 capital 583,238 572,651 558,848 Total risk-based capital 726,291 712,251 697,240 Tier 1 leverage capital (well capitalized = 5%) 8.64 % 8.73 % 8.72 % Common equity Tier 1 risk-based capital (well capitalized = 6.5%) 10.79 10.95 10.60 Tier 1 risk-based capital (well capitalized = 8.0%) 11.42 11.77 11.39 Total risk-based capital (well capitalized = 10.0%) 13.43 13.62 13.22 Regulatory capital ratios (for Flushing Bank only): Tier 1 capital $ 683,521 $ 680,749 $ 667,882 Common equity Tier 1 capital 683,521 680,749 667,882 Total risk-based capital 717,192 702,500 689,392 Tier 1 leverage capital (well capitalized = 5%) 9.56 % 9.65 % 9.69 % Common equity Tier 1 risk-based capital (well capitalized = 6.5%) 12.63 13.02 12.66 Tier 1 risk-based capital (well capitalized = 8.0%) 12.63 13.02 12.66 Total risk-based capital (well capitalized = 10.0%) 13.25 13.43 13.07 Capital ratios: Average equity to average assets 7.92 % 8.08 % 8.09 % Equity to total assets 7.98 8.26 8.14 Tangible common equity to tangible assets (1) 7.78 8.05 7.93 Asset quality: Non-accrual loans (2) $ 20,038 $ 12,813 $ 15,702 Non-performing loans 20,188 13,258 15,702 Non-performing assets 20,431 13,532 15,976 Net charge-offs 2,156 2,005 1,881 Asset quality ratios: Non-performing loans to gross loans 0.34 % 0.23 % 0.28 % Non-performing assets to total assets 0.29 0.19 0.23 Allowance for loan losses to gross loans 0.61 0.38 0.38 Allowance for loan losses to non-performing assets 179.68 160.73 134.64 Allowance for loan losses to non-performing loans 181.85 164.05 136.99 Full-service customer facilities 20 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 ----------------------------------------------------------------------------------------------- June 30, 2020 March 31, 2020 June 30, 2019 ----------------------------- ----------------------------- ----------------------------- Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost ----------- -------- ------ ----------- -------- ------ ----------- -------- ------ Interest-earning Assets: Mortgage loans, $ 4,762,068 $ 49,719 4.18 % $ 4,697,531 $ 49,412 4.21 % $ 4,590,429 $ 50,206 4.37 % net Other loans, net 1,184,344 10,838 3.66 1,097,335 11,697 4.26 974,628 12,067 4.95 - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total loans, net 5,946,412 60,557 4.07 5,794,866 61,109 4.22 5,565,057 62,273 4.48 (1) (2) - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Taxable securities: Mortgage-backed 465,365 2,327 2.00 507,912 3,040 2.39 585,892 4,225 2.88 securities Other securities 243,867 1,358 2.23 243,726 1,697 2.79 242,560 2,135 3.52 - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total taxable 709,232 3,685 2.08 751,638 4,737 2.52 828,452 6,360 3.07 securities - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Tax-exempt securities: (3) Other securities 60,280 643 4.27 63,535 676 4.26 56,064 595 4.25 - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total tax-exempt 60,280 643 4.27 63,535 676 4.26 56,064 595 4.25 securities - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Interest-earning deposits and 93,911 22 0.09 109,818 290 1.06 90,561 472 2.08 federal funds sold - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total interest-earning 6,809,835 64,907 3.81 6,719,857 66,812 3.98 6,540,134 69,700 4.26 assets - ------ ------ - ------ ------ - ------ ------ Other assets 396,224 387,141 351,407 - --------- - --------- - --------- Total assets $ 7,206,059 $ 7,106,998 $ 6,891,541 - --------- - --------- - --------- Interest-bearing Liabilities: Deposits: Savings accounts $ 188,587 74 0.16 $ 194,026 281 0.58 $ 200,349 348 0.69 NOW accounts 1,440,147 2,099 0.58 1,419,739 4,648 1.31 1,541,956 6,641 1.72 Money market 1,580,652 3,208 0.81 1,697,783 7,042 1.66 1,336,526 6,974 2.09 accounts Certificate of 1,185,842 4,564 1.54 1,267,245 6,767 2.14 1,516,358 8,802 2.32 deposit accounts - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total due to 4,395,228 9,945 0.91 4,578,793 18,738 1.64 4,595,189 22,765 1.98 depositors Mortgagors' 87,058 26 0.12 65,503 40 0.24 83,799 62 0.30 escrow accounts - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total interest-bearing 4,482,286 9,971 0.89 4,644,296 18,778 1.62 4,678,988 22,827 1.95 deposits Borrowings 1,430,488 6,084 1.70 1,307,629 7,066 2.16 1,146,199 6,739 2.35 - --------- - ------ ------ - --------- - ------ ------ - --------- - ------ ------ Total interest-bearing 5,912,774 16,055 1.09 5,951,925 25,844 1.74 5,825,187 29,566 2.03 liabilities - ------ ------ - ------ ------ - ------ ------ Non interest-bearing 560,637 449,761 394,642 demand deposits Other 175,234 128,715 111,088 liabilities - --------- - --------- - --------- Total 6,648,645 6,530,401 6,330,917 liabilities Equity 557,414 576,597 560,624 - --------- - --------- - --------- Total liabilities and $ 7,206,059 $ 7,106,998 $ 6,891,541 equity - --------- - --------- - --------- Net interest income / net interest rate $ 48,852 2.72 % $ 40,968 2.24 % $ 40,134 2.23 % spread (tax equivalent) (3) - ------ ------ - ------ ------ - ------ ------ Net interest-earning assets / net $ 897,061 2.87 % $ 767,932 2.44 % $ 714,947 2.45 % interest margin (tax equivalent) - --------- ------ - --------- ------ - --------- ------ Ratio of interest-earning assets to 1.15 X 1.13 X 1.12 X interest-bearing liabilities ------ ------ ------

—————————————————————(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, $0.2 million and $0.4 million for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

(2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $0.4 million, $2.1 million and $0.8 million for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively.(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $0.1 million in each period.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES NET INTEREST MARGIN (Dollars in thousands) (Unaudited) For the six months ended --------------------------------------------------------------- June 30, 2020 June 30, 2019 ----------------------------- ------------------------------ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost ----------- --------- ----- ----------- --------- ------ Interest-earning Assets: Mortgage loans, net $ 4,729,800 $ 99,131 4.19 % $ 4,604,928 $ 101,051 4.39 % Other loans, net 1,140,840 22,535 3.95 949,991 23,552 4.96 - --------- - ------- ---- - --------- - ------- ------ Total loans, net (1) (2) 5,870,640 121,666 4.14 5,554,919 124,603 4.49 - --------- - ------- ---- - --------- - ------- ------ Taxable securities: Mortgage-backed securities 486,638 5,367 2.21 579,679 8,473 2.92 Other securities 243,796 3,055 2.51 242,214 4,346 3.59 - --------- - ------- ---- - --------- - ------- ------ Total taxable securities 730,434 8,422 2.31 821,893 12,819 3.12 - --------- - ------- ---- - --------- - ------- ------ Tax-exempt securities: (3) Other securities 61,908 1,319 4.26 57,113 1,189 4.16 - --------- - ------- ---- - --------- - ------- ------ Total tax-exempt securities 61,908 1,319 4.26 57,113 1,189 4.16 - --------- - ------- ---- - --------- - ------- ------ Interest-earning deposits and federal funds 101,864 312 0.61 96,767 1,027 2.12 sold - --------- - ------- ---- - --------- - ------- ------ Total interest-earning assets 6,764,846 131,719 3.89 6,530,692 139,638 4.28 - ------- ---- - ------- ------ Other assets 391,683 349,213 - --------- - --------- Total assets $ 7,156,529 $ 6,879,905 - --------- - --------- Interest-bearing Liabilities: Deposits: Savings accounts $ 191,307 355 0.37 $ 203,047 709 0.70 NOW accounts 1,429,943 6,747 0.94 1,515,554 12,672 1.67 Money market accounts 1,639,217 10,250 1.25 1,358,228 13,795 2.03 Certificate of deposit accounts 1,226,544 11,331 1.85 1,519,909 17,005 2.24 - --------- - ------- ---- - --------- - ------- ------ Total due to depositors 4,487,011 28,683 1.28 4,596,738 44,181 1.92 Mortgagors' escrow accounts 76,281 66 0.17 73,046 115 0.31 - --------- - ------- ---- - --------- - ------- ------ Total interest-bearing deposits 4,563,292 28,749 1.26 4,669,784 44,296 1.90 Borrowings 1,369,058 13,150 1.92 1,148,479 13,280 2.31 - --------- - ------- ---- - --------- - ------- ------ Total interest-bearing liabilities 5,932,350 41,899 1.41 5,818,263 57,576 1.98 - ------- ---- - ------- ------ Non interest-bearing demand deposits 505,199 396,724 Other liabilities 151,974 108,273 - --------- - --------- Total liabilities 6,589,523 6,323,260 Equity 567,006 556,645 - --------- - --------- Total liabilities and equity $ 7,156,529 $ 6,879,905 - --------- - --------- Net interest income / net interest rate spread $ 89,820 2.48 % $ 82,062 2.30 % (tax equivalent) (3) - ------- ---- - ------- ------ Net interest-earning assets / net interest $ 832,496 2.66 % $ 712,429 2.51 % margin (tax equivalent) - --------- ---- - --------- ------ Ratio of interest-earning assets to 1.14 X 1.12 X interest-bearing liabilities ---- ------

—————————————————————(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.5 million and $0.9 million for the six months ended June 30, 2020 and June 30, 2019, respectively.(2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $2.4 million and $1.5 million for the six months ended June 30, 2020 and June 30, 2019, respectively.(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $0.3 million for each of the six month periods ended June 30, 2020 and 2019.

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES DEPOSIT COMPOSITION (Unaudited) June June 2020 vs. 2020 vs. June 30, March 31, December December September June 30, June 31, 2019 30, 2019 (Dollars in thousands) 2020 2020 2019 % Change 2019 2019 % Change ---------------------- ----------- ----------- ----------- -------- ----------- ----------- -------- Deposits Non-interest bearing $ 581,881 $ 489,198 $ 435,072 33.7 % $ 421,786 $ 413,813 40.6 % Interest bearing: Certificate of deposit 1,135,977 1,172,381 1,437,890 (21.0 )% 1,506,376 1,544,117 (26.4 )% accounts Savings accounts 184,895 192,192 191,485 (3.4 )% 193,497 196,820 (6.1 )% Money market accounts 1,474,880 1,597,109 1,592,011 (7.4 )% 1,329,156 1,302,153 13.3 % NOW accounts 1,672,241 1,377,555 1,365,591 22.5 % 1,461,694 1,368,813 22.2 % - --------- - --------- - --------- ----- -- - --------- - --------- ----- -- Total interest-bearing 4,467,993 4,339,237 4,586,977 (2.6 )% 4,490,723 4,411,903 1.3 % deposits - --------- - --------- - --------- -------- - --------- - --------- -------- Total deposits $ 5,049,874 $ 4,828,435 $ 5,022,049 0.6 % $ 4,912,509 $ 4,825,716 4.6 % - --------- - --------- - --------- ----- -- - --------- - --------- ----- --

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES LOANS (Unaudited) Loan Closings For the three months ended For the six months ended --------------------------------- --------------------- June 30, March 31, June 30, June 30, June 30, (In thousands) 2020 2020 2019 2020 2019 --------------------------------------- ---------- --------- ---------- ---------- --------- Multi-family residential $ 59,654 $ 67,318 $ 55,629 $ 126,972 $ 82,843 Commercial real estate 8,003 99,571 42,700 107,574 56,641 One-to-four family – mixed-use property 8,117 13,455 12,885 21,572 29,308 One-to-four family – residential 2,674 8,413 7,884 11,087 11,770 Co-operative apartments — 704 300 704 300 Construction 2,821 6,749 18,715 9,570 24,616 Small Business Administration(1) 93,241 57 2,255 93,298 2,584 Commercial business and other 59,287 102,448 156,029 161,735 286,359 - -------- - ------- - -------- - -------- - ------- Total $ 233,797 $ 298,715 $ 296,397 $ 532,512 $ 494,421 - -------- - ------- - -------- - -------- - -------

—————————————————————(1) Includes $93.2 million of PPP closings for the three and six months ended June 30, 2020.

Loan Composition June June 2020 vs. 2020 vs. June 30, March 31, December 31, December September 30, June 30, June 2019 2019 (Dollars in 2020 2020 2019 % Change 2019 2019 % Change thousands) --------------- ------------- ------------- ------------- -------- ------------- ------------- -------- Loans held for investment: Multi-family $ 2,285,555 $ 2,272,343 $ 2,238,591 2.1 % $ 2,232,305 $ 2,263,875 1.0 % residential Commercial real 1,646,085 1,664,934 1,582,008 4.1 % 1,559,581 1,524,693 8.0 % estate One-to-four family ― 591,347 592,109 592,471 (0.2 )% 587,100 582,264 1.6 % mixed-use property One-to-four family ― 184,741 189,774 188,216 (1.8 )% 184,432 184,024 0.4 % residential Co-operative 8,423 8,493 8,663 (2.8 )% 9,089 8,137 3.5 % apartments Construction 69,433 66,727 67,754 2.5 % 64,234 58,503 18.7 % Small Business Administration 106,813 14,076 14,445 639.4 % 3,982 14,511 636.1 % (1) Taxi medallion 3,269 3,281 3,309 (1.2 )% 3,513 3,555 (8.0 )% Commercial business and 1,073,623 1,104,967 1,061,478 1.1 % 1,096,164 983,573 9.2 % other Net unamortized premiums and 13,986 15,384 15,271 (8.4 )% 15,363 15,278 (8.5 )% unearned loan fees Allowance for (36,710 ) (28,098 ) (21,751 ) 68.8 % (22,035 ) (21,510 ) 70.7 % loan losses - --------- - - --------- - - --------- - ----- -- - --------- - - --------- - ----- -- Net loans $ 5,946,565 $ 5,903,990 $ 5,750,455 3.4 % $ 5,743,728 $ 5,616,903 5.9 % - --------- - - --------- - - --------- - ----- -- - --------- - - --------- - ----- --

—————————————————————(1) Includes $93.2 million of PPP loans at June 30, 2020.

Net Loans Activity Three Months Ended -------------------------------------------------------------------- June 30, March 31, December 31, September June 30, 30, (In thousands) 2020 2020 2019 2019 2019 ------------------------------------- ------------ ------------ ------------ ------------ ------------ Loans originated and purchased $ 233,797 $ 298,715 $ 269,736 $ 398,143 $ 296,397 Principal reductions (180,182 ) (137,189 ) (255,977 ) (266,894 ) (243,263 ) Loans sold — (498 ) (7,129 ) (3,553 ) (1,970 ) Loan charge-offs (1,030 ) (1,259 ) (95 ) (431 ) (1,114 ) Foreclosures — — — — (239 ) Net change in deferred fees and costs (1,398 ) 113 (92 ) 85 (144 ) Net change in the allowance for loan (8,612 ) (6,347 ) 284 (525 ) (495 ) losses - -------- - - -------- - - -------- - - -------- - - -------- - Total loan activity $ 42,575 $ 153,535 $ 6,727 $ 126,825 $ 49,172 - -------- - - -------- - - -------- - - -------- - - -------- -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES NON-PERFORMING ASSETS and NET CHARGE-OFFS (Unaudited) Non-Performing Assets June 30, March December September June 30, 31, 31, 30, (Dollars in thousands) 2020 2020 2019 2019 2019 -------------------------------------------------- -------- -------- -------- -------- -------- Loans 90 Days Or More Past Due and Still Accruing: Multi-family residential $ — $ — $ 445 $ 445 $ — Commercial business and other 150 — — — — - ------ - ------ - ------ - ------ - ------ Total 150 — 445 445 — - ------ - ------ - ------ - ------ - ------ Non-accrual Loans: Multi-family residential 3,688 2,741 2,296 3,132 2,008 Commercial real estate 2,671 8 367 872 1,488 One-to-four family - mixed-use property 2,511 607 274 683 1,752 One-to-four family - residential 6,412 5,158 5,139 5,050 5,411 Small Business Administration 1,321 1,518 1,151 1,151 1,224 Taxi medallion(1) 1,757 1,761 1,641 1,352 1,361 Commercial business and other(1) 1,678 4,959 1,945 2,020 2,458 - ------ - ------ - ------ - ------ - ------ Total 20,038 16,752 12,813 14,260 15,702 - ------ - ------ - ------ - ------ - ------ Total Non-performing Loans 20,188 16,752 13,258 14,705 15,702 - ------ - ------ - ------ - ------ - ------ Other Non-performing Assets: Real estate acquired through foreclosure 208 208 239 239 239 Other asset acquired through foreclosure 35 35 35 35 35 - ------ - ------ - ------ - ------ - ------ Total 243 243 274 274 274 - ------ - ------ - ------ - ------ - ------ Total Non-performing Assets $ 20,431 $ 16,995 $ 13,532 $ 14,979 $ 15,976 - ------ - ------ - ------ - ------ - ------ Non-performing Assets to Total Assets 0.29 % 0.23 % 0.19 % 0.21 % 0.23 % Allowance For Loan Losses to Non-performing Loans 181.8 % 167.7 % 164.1 % 149.8 % 137.0 %

—————————————————————(1) Not included in the above analysis are non-accrual performing TDR taxi medallion loans totaling $1.5 million in 2Q20, $1.5 million in 1Q20, $1.7 million in 4Q19, $2.2 million in 3Q19, and $2.2 million in 2Q19 and non-accrual performing TDR commercial business loans totaling $1.0 million in 1Q20, $1.0 million in 1Q20, $0.9 million in 4Q19 and $1.0 million in 3Q19.

Net Charge-Offs (Recoveries) Three Months Ended ------------------------------------------------ June 30, March 31, December September June 31, 30, 30, (In thousands) 2020 2020 2019 2019 2019 --------------------------------------- --------- --------- ------- -------- ------- Multi-family residential $ (7 ) $ (6 ) $ (14 ) $ 183 $ (10 ) Commercial real estate — — (30 ) — (7 ) One-to-four family – mixed-use property 3 (78 ) 119 (140 ) (2 ) One-to-four family – residential (3 ) (5 ) (3 ) (3 ) 110 Small Business Administration 165 (7 ) (8 ) (32 ) (16 ) Taxi medallion — — — — (50 ) Commercial business and other 849 1,245 (98 ) 150 954 - ----- - - ----- - - --- - - ---- - - --- - Total net loan charge-offs (recoveries) $ 1,007 $ 1,149 $ (34 ) $ 158 $ 979 - ----- - - ----- - - --- - - ---- - - --- -

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES FORBEARANCES DETAIL (Dollars in thousands) (Unaudited) Balances by Risk Rating (1) Forbearances (2) Backed by Mortgages (1) ----------------------------------------- --------------------- ------------------------- Criticize % of Pass d/ Total Total Balance % of Balance % of LTV Classifie Loans Sector Total d ----------- -------- ----------- ----- ----------- ------ ----------- ----- ---- Higher Risk Segments Restaurants and Catering $ 67,420 $ 2,196 $ 69,616 1.2 % $ 24,420 35.1 % $ 58,764 84.4 % 38.6 % Halls Hotels 172,916 — 172,916 2.9 114,627 66.3 162,093 93.7 53.8 Travel and 180,138 — 180,138 3.0 37,670 20.9 74,192 41.2 48.4 Leisure Retail 76,494 — 76,494 1.3 21,168 27.7 38,760 50.7 61.9 Services CRE - Shopping 255,192 — 255,192 4.3 124,958 49.0 255,192 100.0 44.4 Center CRE - Single 133,937 337 134,274 2.2 44,311 33.0 134,274 100.0 41.8 Tenant CRE - Strip 286,131 2,050 288,181 4.8 139,344 48.4 288,181 100.0 45.1 Mall Transportation 107,207 7,800 115,007 1.9 14,756 12.8 26,155 22.7 53.0 Contractors 184,948 1,399 186,347 3.1 16,142 8.7 121,365 65.1 51.9 Schools and 43,674 — 43,674 0.7 12,441 28.5 35,193 80.6 43.4 Child Care - --------- - ------ - --------- ----- - --------- ------ - --------- ----- ---- Subtotal $ 1,508,057 $ 13,782 $ 1,521,839 25.5 % $ 549,837 36.1 % $ 1,194,169 78.5 % 46.5 % - --------- - ------ - --------- ----- - --------- ------ - --------- ----- ---- Lower Risk $ 4,412,763 $ 34,687 $ 4,447,450 74.5 % $ 728,307 16.4 % $ 4,059,435 91.3 % 36.4 % Segments - --------- - ------ - --------- ----- - --------- ------ - --------- ----- ---- Total $ 5,920,820 $ 48,469 $ 5,969,289 100.0 % $ 1,278,144 21.4 % $ 5,253,604 88.0 % 38.1 % - --------- - ------ - --------- ----- - --------- ------ - --------- ----- ----

—————————————————————(1) At June 30, 2020 (2) Represents dollar amount granted through 07/10/20

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIESRECONCILIATION OF GAAP EARNINGS and CORE EARNINGS

Non-cash Fair Value Adjustments to GAAP Earnings

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

Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, 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 Six Months Ended ------------------------------------------- ---------------------------- June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 ------------- ------------- ------------- ------------- ------------- GAAP income (loss) before income $ 24,080 $ (1,596 ) $ 13,828 $ 22,484 $ 23,183 taxes Net (gain) loss from fair value (10,205 ) 5,993 1,956 (4,212 ) 4,036 adjustments Net loss on sale of securities 54 37 15 91 15 Life insurance proceeds (659 ) — — (659 ) (43 ) Net gain on sale of assets — — (770 ) — (770 ) Net loss from fair value 365 2,073 818 2,438 1,455 adjustments on qualifying hedges Accelerated employee benefits upon — — — — 455 Officer's death Merger expense 194 929 — 1,123 — - ----------- - ----------- - ----------- - ----------- - ----------- Core income before taxes 13,829 7,436 15,847 21,265 28,331 Provision for income taxes for core 3,532 1,936 3,771 5,468 6,804 income - --------- - - --------- - - --------- - - --------- - - --------- - Core net income $ 10,297 $ 5,500 $ 12,076 $ 15,797 $ 21,527 - --------- - - --------- - - --------- - - --------- - - --------- - GAAP diluted earnings (loss) per $ 0.63 $ (0.05 ) $ 0.37 $ 0.58 $ 0.61 common share Net (gain) loss from fair value (0.27 ) 0.15 0.05 (0.11 ) 0.10 adjustments, net of tax Net loss on sale of securities, net — — — — — of tax Life insurance proceeds (0.02 ) — — (0.02 ) — Net gain on sale of assets, net of — — (0.02 ) — (0.02 ) tax Net loss from fair value adjustments on qualifying hedges, 0.01 0.05 0.02 0.06 0.04 net of tax Accelerated employee benefits upon — — — — 0.01 Officer's death, net of tax Merger expense, net of tax 0.01 0.02 — 0.03 — - --------- - - --------- - - --------- - - --------- - - --------- - Core diluted earnings per common $ 0.36 $ 0.19 $ 0.42 $ 0.55 $ 0.75 share(1) - --------- - - --------- - - --------- - - --------- - - --------- - Core net income, as calculated $ 10,297 $ 5,500 $ 12,076 $ 15,797 $ 21,527 above Average assets 7,206,059 7,106,998 6,891,541 7,156,529 6,879,905 Average equity 557,414 576,597 560,624 567,006 556,645 Core return on average assets(2) 0.57 % 0.31 % 0.70 % 0.44 % 0.63 % Core return on average equity(2) 7.39 % 3.82 % 8.62 % 5.57 % 7.73 %

—————————————————————(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 REVENUE and PRE-PROVISION PRE-TAX NET REVENUE (Dollars in thousands) (Unaudited) Three Months Ended Six Months Ended ------------------------------------- ------------------------ June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 ----------- ----------- ----------- ----------- ----------- Net interest income $ 48,717 $ 40,826 $ 40,009 $ 89,543 $ 81,812 Non-interest income (loss) 13,737 (2,864 ) 2,451 10,873 3,394 Non-interest expense (28,755 ) (32,380 ) (27,158 ) (61,135 ) (59,577 ) - --------- - --------- - --------- - --------- - --------- Pre-provision pre-tax net revenue (1) $ 33,699 $ 5,582 $ 15,302 $ 39,281 $ 25,629 - ------- - - ------- - - ------- - - ------- - - ------- -

—————————————————————(1) Includes non-cash net gains and (losses) from fair value adjustments totaling $9.8 million, ($8.1) million and ($2.8) million for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively and $1.8 million and ($5.5) million for the six months ended June 30, 2020 and 2019, respectively.

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 Six Months Ended ------------------------------------------- ---------------------------- June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 ------------- ------------- ------------- ------------- ------------- GAAP net interest income $ 48,717 $ 40,826 $ 40,009 $ 89,543 $ 81,812 Net loss from fair value 365 2,073 818 2,438 1,455 adjustments on qualifying hedges - --------- - - --------- - - --------- - - --------- - - --------- - Core net interest income $ 49,082 $ 42,899 $ 40,827 $ 91,981 $ 83,267 - --------- - - --------- - - --------- - - --------- - - --------- - GAAP interest income on total $ 60,557 $ 61,109 $ 62,273 $ 121,666 $ 124,603 loans, net Net loss from fair value 365 2,073 818 2,438 1,455 adjustments on qualifying hedges Prepayment penalties received on (702 ) (753 ) (1,120 ) (1,455 ) (1,925 ) loans Net recoveries of interest from (74 ) (436 ) (519 ) (510 ) (1,233 ) non-accrual loans - --------- - - --------- - - --------- - - --------- - - --------- - Core interest income on total $ 60,146 $ 61,993 $ 61,452 $ 122,139 $ 122,900 loans, net - --------- - - --------- - - --------- - - --------- - - --------- - Average total loans, net $ 5,946,412 $ 5,794,866 $ 5,565,057 $ 5,870,640 $ 5,554,919 Core yield on total loans 4.05 % 4.28 % 4.42 % 4.16 % 4.42 % Net interest income tax equivalent $ 48,852 $ 40,968 $ 40,134 $ 89,820 $ 82,062 Net loss from fair value 365 2,073 818 2,438 1,455 adjustments on qualifying hedges Prepayment penalties received on (702 ) (753 ) (1,120 ) (1,455 ) (1,925 ) loans and securities Net recoveries of interest from (74 ) (436 ) (519 ) (510 ) (1,233 ) non-accrual loans - --------- - - --------- - - --------- - - --------- - - --------- - Net interest income used in calculation of Core net interest $ 48,441 $ 41,852 $ 39,313 $ 90,293 $ 80,359 margin - --------- - - --------- - - --------- - - --------- - - --------- - Total average interest-earning $ 6,809,835 $ 6,719,857 $ 6,540,134 $ 6,764,846 $ 6,530,692 assets Core net interest margin 2.85 % 2.49 % 2.40 % 2.67 % 2.46 %

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CALCULATION OF TANGIBLE STOCKHOLDERS’ COMMON EQUITY to TANGIBLE ASSETS (Unaudited) June 30, December 31, June 30, (Dollars in thousands) 2020 2020 2019 ------------------------------------------------------- ------------- ------------- ------------- Total Equity $ 571,921 $ 579,672 $ 565,390 Less: Goodwill (16,127 ) (16,127 ) (16,127 ) Intangible deferred tax liabilities 292 292 286 - --------- - - --------- - - --------- - Tangible Stockholders' Common Equity $ 556,086 $ 563,837 $ 549,549 - --------- - - --------- - - --------- - Total Assets $ 7,162,659 $ 7,017,776 $ 6,945,634 Less: Goodwill (16,127 ) (16,127 ) (16,127 ) Intangible deferred tax liabilities 292 292 286 - --------- - - --------- - - --------- - Tangible Assets $ 7,146,824 $ 7,001,941 $ 6,929,793 - ----------- - ----------- - ----------- Tangible Stockholders' Common Equity to Tangible Assets 7.78 % 8.05 % 7.93 % - --------- - - --------- - - --------- -

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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. CullenSenior Executive Vice President, Treasurer and Chief Financial OfficerFlushing Financial Corporation(718) 961-5400

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