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Flushing Financial Corporation (FFIC)

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Previous Close12.26
Open12.13
Bid8.00 x 1000
Ask0.00 x 800
Day's Range11.94 - 12.71
52 Week Range8.86 - 22.10
Volume158,776
Avg. Volume125,575
Market Cap347.651M
Beta (5Y Monthly)0.89
PE Ratio (TTM)8.75
EPS (TTM)1.41
Earnings DateJan 28, 2021 - Feb 01, 2021
Forward Dividend & Yield0.84 (6.85%)
Ex-Dividend DateSep 10, 2020
1y Target Est18.33
  • Flushing Financial Corporation Reports 3Q20 GAAP Earnings of $0.50 and Record Core Earnings Up 56% Driven by Record Net Interest Income
    GlobeNewswire

    Flushing Financial Corporation Reports 3Q20 GAAP Earnings of $0.50 and Record Core Earnings Up 56% Driven by Record Net Interest Income

    THIRD QUARTER 2020 HIGHLIGHTS1 * GAAP diluted EPS of $0.50, compared to $0.63 in 2Q20 and $0.37 in 3Q19 * Record Core diluted EPS of $0.56 compared to $0.36 in 2Q20 and $0.48 in 3Q19 * Net interest margin of 3.00%, up 13bps QoQ and 63bps YoY * Core net interest margin of 2.89%, up 4bps QoQ and 56bps YoY * Record GAAP net interest income of $49.9 million, up 2.5% QoQ and 28.2% YoY * Record Core net interest income of $49.7 million, up 1.2% QoQ and 23.6% YoY * GAAP and core ROAE were 9.9% and 11.2%, respectively, compared with 13.1% and 7.4%, respectively in 2Q20 * GAAP and core ROAA were 0.8% and 0.9%, respectively, compared with 1.0% and 0.6%, respectively in 2Q20 * Loan pipeline remains strong at $394.1 million * Provision for credit losses of $2.5 million, $0.07 after-tax per diluted common share, compared to $9.6 million in 2Q20 and $0.7 million in 3Q19 * Net charge-offs were $0.8 million, compared to $1.0 million in 2Q20UNIONDALE, N.Y., Oct. 27, 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 third quarter ended September 30, 2020.John R. Buran, President and Chief Executive Officer stated, “I want to thank our employees for their tireless work in assisting our customers and communities as we continue to navigate these unprecedented times due to the COVID-19 pandemic.”Mr. Buran continued, “We are pleased to announce our third quarter earnings totaled $14.3 million, or $0.50 per diluted common share, driven by strong execution of our strategic objectives. We continued to proactively manage credit risk and made good progress improving our funding mix with an emphasis on non-interest bearing demand accounts, which increased 4% (not annualized), during the quarter. For the second consecutive quarter we achieved record net interest income, as the Company capitalized on the low interest rate environment. The cost of funds decreased 10 basis points while the yield on interest earning assets increased three basis points. The net interest margin expanded 13 basis points from the linked quarter. Given the current rate environment, we expect to sustain a strong margin and anticipate that our cost of funds will further decline during the fourth quarter as $315 million of retail certificates of deposits are scheduled to mature at an average rate of 1.10% compared to a current one year CD rate of 0.60%.”“The principal balance of loans granted forbearance has decreased from a peak of $1.5 billion to $846 million with approximately 80% of loans scheduled to return to full payment have already done so. We generally granted additional forbearances at new terms more advantageous to the Company for the majority of customers that have not yet returned to full payment status. We expect further reduction in active forbearances during the fourth quarter as most will reach their expiration prior to year-end. Our loan portfolio is primarily real estate based with 88% collateralized by real estate with an average loan to value of less than 40%. Our forbearances share similar credit quality characteristics with the overall loan portfolio. We have a conservative, resilient seasoned loan portfolio built upon our long history and foundation of disciplined underwriting and excellent credit quality.”“Our enhanced technology platform, which went live in March 2020 offering mobile banking capabilities, has effectively extended our branch footprint.  Importantly, 23% of all account openings in the third quarter were completed using our technology platform as customers continue to shift to digital banking.  Additionally, our online banking enrollment has increased 4% quarter over quarter.”“Finally, we are excited to report that earlier today Empire Bancorp, Inc. (“Empire”) shareholders approved the merger, which is scheduled to close on or about October 31, 2020. The credit quality of Empire remains strong with no loans greater than 90 days past due and less than $1.0 million in loans greater than 30 days past due. As of September 30, 2020, Empire has $120 million in active forbearance agreements outstanding.”Mr. Buran concluded, “We are pleased with the execution against our strategic objectives resulting in record net interest income of $49.9 million and record core earnings for the quarter which totaled $16.2 million, or $0.56 per diluted common share. Credit continued to be strong as non-performing assets at the end of the quarter totaled only 35 basis points. In addtition, loan forbearances declined consistent with our expectations. We look forward to welcoming Empire employees to the Flushing Bank family to together build upon their success and provide continued exceptional service as a leading banking franchise on Long Island.”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 scenariosEarnings Summary:Net Interest IncomeNet interest income for 3Q20 was $49.9 million, an increase of $11.0 million, or 28.2% YoY and $1.2 million, or 2.5% QoQ. * Net interest margin of 3.00%, increased 63bps YoY and 13bps QoQ * Net interest spread of 2.86%, increased 71bps YoY and 14bps QoQ * Yield on average interest-earning assets of 3.84%, decreased 38bps YoY, but increased 3bps QoQ * Cost of average interest-bearing liabilities of 0.98%, decreased 109bps YoY and 11bps QoQ * Cost of funds of 0.89%, decreased 105bps YoY and 10bps QoQ * Average balance of total interest-earning assets of $6,675.9 million, increased $86.4 million, or 1.3%, YoY, but decreased $133.9 million, or 2.0%, QoQ * Net interest income includes prepayment penalty income from loans and securities totaling $1.4 million in 3Q20, $0.7 million in 2Q20 and $1.7 million in 3Q19; recovered interest from delinquent loans of $0.1 million in 3Q20 and 2Q20, and $0.3 million in 3Q19; net gains (losses) from fair value adjustments on qualifying hedges totaling $0.2 million in 3Q20, ($0.4) million in 2Q20, and ($1.3) million in 3Q19 * Absent all above items noted in the preceding bullet, the net interest margin was 2.89% in 3Q20, an increase of 56bps YoY and 4bps QoQProvision for Credit LossesThe Company recorded a provision for credit losses of $2.5 million in 3Q20, a decrease of $7.1 million or 74.3% QoQ, but an increase of $1.8 million YoY. * 3Q20 and 2Q20 provision for credit losses were primarily driven by the negative economic forecast; the reduction in provision for credit losses from 2Q20 was due to the consistency in the qualitative factors used in the calculation QoQ * Net charge-offs of $0.8 million in 3Q20, $1.0 million in 2Q20 and $0.2 million in 3Q19Non-interest Income Non-interest income for 3Q20 was $1.4 million, an increase of $0.3 million or 30.0% YoY, but a decrease of $12.4 million or 90.2% QoQ. * Non-interest income included net losses from fair value adjustments of $2.2 million and $2.1 million in 3Q20 and 3Q19, respectively; net gains from fair value adjustments of $10.2 million in 2Q20 * Additionally, non-interest income included life insurance proceeds totaling $0.7 million in 2Q20 * Absent all above items, non-interest income was $3.6 million in 3Q20, an increase of $0.4 million, or 13.1% YoY, and $0.7 million, or 24.5% QoQNon-interest ExpenseNon-interest expense for 3Q20 was $30.0 million, an increase of $3.9 million or 15.1% YoY, and $1.2 million, or 4.3 % QoQ. * Non-interest expense increased QoQ primarily due to 2Q20 including $1.4 million of benefit for deferred compensation costs from originations of PPP loans compared to $0.2 million in 3Q20, and increased YoY primarily due to Company growth  * 3Q19 Non-interest expense included FDIC assessment credit * Non-interest expense included merger expenses totaling $0.4 million in 3Q20, $0.2 million in 2Q20 and $0.5 million in 3Q19 * The ratio of non-interest expense to average assets was 1.69% in 3Q20 compared to 1.60% in 2Q20 and 1.49% in 3Q19 * The efficiency ratio was 55.4% in 3Q20 compared to 54.9% in 2Q20 and 58.9% in 3Q19Provision for Income TaxesThe provision for income taxes in 3Q20 was $4.5 million, an increase of $2.0 million, or 77.0% YoY, but a decrease of $1.3 million, or 22.7 % QoQ. * Pre-tax income increased by $5.6 million YoY, but decreased by $5.3 million QoQ * The effective tax rates were 23.9% in 3Q20, 24.1% in 2Q20 and 19.1% in 3Q19Financial Condition Summary:Loans: * Net loans held for investment were $5,903.1 million reflecting an increase of 2.7% 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 $18.4 million in 3Q20, which ended in August 2020 * Loan closings of commercial business loans, multi-family loans and commercial real estate totaled $126.9 million for 3Q20, or 91.5% of loan production, excluding PPP closings * Loan pipeline was $394.1 million at September 30, 2020, compared to $324.5 million at December 31, 2019The following table shows the weighted average rate received from loan closings for the periods indicated:           For the three months ended    September 30, June 30, September 30,  Loan type 2020 2020 2019  Mortgage loans 3.56%3.79%4.40% Non-mortgage loans 2.81%1.99%4.38% Total loans 3.16%2.62%4.39%          Excluding PPP loans 3.45%3.71%4.39% Credit Quality: * Non-performing loans totaled $24.8 million, an increase of $11.5 million, or 87.0%, from $13.3 million at December 31, 2019 * Non-performing assets totaled $24.8 million, an increase of $11.3 million, or 83.5%, from $13.5 million at December 31, 2019 * Classified assets totaled $30.4 million, an increase of $5.9 million, or 23.8%, from $24.6 million at December 31, 2019 * Loans classified as troubled debt restructured (TDR) totaled $5.1 million, a decrease of $1.4 million, or 20.9%, from $6.5 million at December 31, 2019 * Active COVID-19 forbearances at September 30th totaled 509 loans with a principal balance of $846.2 million at the time of modification decreased from a peak of $1.5 billion; total deferment of $28.4 million in principal, interest and escrow * Over 88% of gross loans are collateralized by real estate * The loan-to-value ratio on portfolio of real estate dependent loans as of September 30, 2020 totaled 37.8% * Net charge-offs totaled $3.0 million for the nine months ended September 30, 2020.Capital Management: * The Company and Bank, at September 30, 2020, were both well capitalized under all applicable regulatory requirements * Through 3Q20, stockholders’ equity increased $6.7 million, or 1.2%, from December 31, 2019, to $586.4 million primarily due to net income of $31.2 million, partially offset by payment of dividends on the Company’s common stock and unrealized losses in the fair value of interest rate swaps. * During 3Q20, the Company did not repurchase any shares; as of September 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 $20.78 at September 30, 2020, compared to $20.59 at December 31, 2019 * Tangible book value per common share, a non-GAAP measure, was $20.22 at September 30, 2020, compared to $20.02 at December 31, 2019Conference Call Information: * John R. Buran, President and Chief Executive Officer, and Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, will host a conference call on Wednesday, October 28, 2020 at 9:30 AM (ET) to discuss the Company’s strategy and results for the third quarter * Dial-in for Live Call: 1-877-509-5836 * Webcast: https://services.choruscall.com/links/ffic201021.html  * Dial-in for Replay: 1-877-344-7529 * Replay Access Code: 10138502 * The conference call will be simultaneously webcast and archived through October 28, 2021About Flushing Financial CorporationFlushing 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, as well as the possibility that the expected benefits of the proposed Empire merger may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the proposed transaction may not be timely completed, if at all; that prior to the completion of the proposed merger or thereafter, Flushing’s and Empire’s respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies related to the proposed transaction; that customary closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies’ shareholders, customers, employees and other constituents to the proposed transaction; and diversion of management time on merger-related matters. These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus that is included in the registration statement on Form S-4 filed with the SEC in connection with the proposed transaction, as amended and supplemented from time to time.   Forward-looking statements may be identified by terms such as “may”, “will”, “should”, “could”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “forecasts”, “goals”, “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.- Statistical Tables Follow - FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) (Unaudited)  For the three months ended For the nine months ended   September 30, June 30, September 30, September 30, September 30,   2020  2020  2019  2020  2019  Interest and Dividend Income                Interest and fees on loans $60,367  $60,557  $62,825  $182,033  $187,428  Interest and dividends on securities:                Interest  3,525   4,182   6,287   12,963   20,007  Dividends  9   11   18   35   56  Other interest income  13   22   259   325   1,286  Total interest and dividend income  63,914   64,772   69,389   195,356   208,777                   Interest Expense                Deposits  7,093   9,971   22,244   35,842   66,540  Other interest expense  6,897   6,084   8,196   20,047   21,476  Total interest expense  13,990   16,055   30,440   55,889   88,016                   Net Interest Income  49,924   48,717   38,949   139,467   120,761  Provision for credit losses  2,470   9,619   683   19,267   3,129  Net Interest Income After Provision for Credit Losses  47,454   39,098   38,266   120,200   117,632                   Non-interest Income                Banking services fee income  1,316   944   847   3,058   2,879  Net loss on sale of securities  —   (54)  —   (91)  (15) Net gain on sale of loans  —   —   204   42   381  Net gain on sale of assets  —   —   —   —   770  Net gain (loss) from fair value adjustments  (2,225)  10,205   (2,124)  1,987   (6,160) Federal Home Loan Bank of New York stock dividends  874   881   834   2,719   2,563  Life insurance proceeds  —   659   —   659   43  Bank owned life insurance  923   932   1,000   2,798   2,550  Other income  463   170   278   1,052   1,422  Total non-interest income  1,351   13,737   1,039   12,224   4,433                   Non-interest Expense                Salaries and employee benefits  17,335   16,184   15,461   52,139   50,295  Occupancy and equipment  3,021   2,827   2,847   8,688   8,378  Professional services  2,064   1,985   2,167   6,911   6,238  FDIC deposit insurance  727   737   (589)  2,114   563  Data processing  1,668   1,813   1,490   5,175   4,402  Depreciation and amortization  1,542   1,555   1,439   4,633   4,454  Other real estate owned/foreclosure expense  240   45   48   121   145  Net loss from sales of real estate owned  5   —   —   36   —  Other operating expenses  3,383   3,609   3,182   11,303   11,147  Total non-interest expense  29,985   28,755   26,045   91,120   85,622                   Income Before Income Taxes  18,820   24,080   13,260   41,304   36,443                   Provision for Income Taxes                Federal  3,359   4,307   2,457   8,655   7,381  State and local  1,130   1,501   79   1,436   714  Total taxes  4,489   5,808   2,536   10,091   8,095                   Net Income $14,331  $18,272  $10,724  $31,213  $28,348                                    Basic earnings per common share $0.50  $0.63  $0.37  $1.08  $0.99  Diluted earnings per common share $0.50  $0.63  $0.37  $1.08  $0.99  Dividends per common share $0.21  $0.21  $0.21  $0.63  $0.63  FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollars in thousands, except per share data) (Unaudited)     September 30,     June 30,    December 31,   2020  2020  2019  ASSETS             Cash and due from banks $ 75,560  $ 84,754  $ 49,787  Securities held-to-maturity:           Mortgage-backed securities   7,919    7,924    7,934  Other securities   50,252    50,078    50,954  Securities available for sale:          Mortgage-backed securities   386,235    442,507    523,849  Other securities   234,721    232,803    248,651  Loans:          Multi-family residential   2,252,757    2,285,555    2,238,591  Commercial real estate   1,636,659    1,646,085    1,582,008  One-to-four family ― mixed-use property   585,159    591,347    592,471  One-to-four family ― residential   191,011    184,741    188,216  Co-operative apartments   8,132    8,423    8,663  Construction   63,567    69,433    67,754  Small Business Administration   124,649    106,813    14,445  Taxi medallion   2,317    3,269    3,309  Commercial business and other   1,063,429    1,073,623    1,061,478  Net unamortized premiums and unearned loan fees   13,718    13,986    15,271  Allowance for loan losses   (38,343)   (36,710)   (21,751) Net loans   5,903,055    5,946,565    5,750,455  Interest and dividends receivable   36,068    30,219    25,722  Bank premises and equipment, net   25,766    27,018    28,676  Federal Home Loan Bank of New York stock   57,119    56,400    56,921  Bank owned life insurance   158,701    157,779    157,713  Goodwill   16,127    16,127    16,127  Other real estate owned, net   —    208    239  Right of use asset   42,326    38,303    41,254  Other assets   69,207    71,974    59,494  Total assets $ 7,063,056  $ 7,162,659  $ 7,017,776             LIABILITIES             Due to depositors:             Non-interest bearing $ 607,954  $ 581,881  $ 435,072  Certificate of deposit accounts   1,051,644    1,135,977    1,437,890  Savings accounts   160,294    184,895    191,485  Money market accounts   1,381,552    1,474,880    1,592,011  NOW accounts   1,704,915    1,672,241    1,365,591  Total deposits   4,906,359    5,049,874    5,022,049  Mortgagors' escrow deposits   57,136    48,525    44,375  Borrowed funds   1,323,975    1,305,187    1,237,231  Operating lease liability   49,737    45,897    49,367  Other liabilities   139,443    141,255    85,082  Total liabilities   6,476,650    6,590,738    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 September 30, 2020, June 30, 2020 and December 31, 2019; 28,218,427 shares, 28,217,434 shares and 28,157,206 shares outstanding at September 30, 2020, June 30, 2020 and December 31, 2019, respectively)   315    315    315  Additional paid-in capital   227,877    226,901    226,691  Treasury stock (3,312,168 shares, 3,313,161 shares and 3,373,389 shares at September 30, 2020, June 30, 2020 and December 31, 2019, respectively)   (69,409)   (69,436)   (71,487) Retained earnings   445,931    437,663    433,960  Accumulated other comprehensive loss, net of taxes   (18,308)   (23,522)   (9,807) Total stockholders' equity   586,406    571,921    579,672             Total liabilities and stockholders' equity $ 7,063,056  $ 7,162,659  $ 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 nine months ended    September 30, June 30, September 30, September 30, September 30,    2020 2020 2019 2020 2019  Per Share Data                 Basic earnings per share $0.50 $0.63 $0.37 $1.08 $0.99  Diluted earnings per share $0.50 $0.63 $0.37 $1.08 $0.99  Average number of shares outstanding for:                 Basic earnings per common share computation  28,873,606  28,866,984  28,730,161  28,864,503  28,704,398  Diluted earnings per common share computation  28,873,606  28,866,984  28,730,161  28,864,503  28,704,402  Shares outstanding  28,218,427  28,217,434  28,157,206  28,218,427  28,157,206  Book value per common share (1) $20.78 $20.27 $20.19 $20.78 $20.19  Tangible book value per common share (2) $20.22 $19.71 $19.62 $20.22 $19.62                    Stockholders' Equity                 Stockholders' equity $586,406 $571,921 $568,392 $586,406 $568,392  Tangible stockholders' equity  570,571  556,086  552,551  570,571  552,551                    Average Balances                 Total loans, net $5,904,051 $5,946,412 $5,645,503 $5,881,858 $5,585,445  Total interest-earning assets  6,675,896  6,809,835  6,589,498  6,734,979  6,550,509  Total assets  7,083,028  7,206,059  6,972,403  7,131,850  6,911,077  Total due to depositors  4,353,560  4,395,228  4,422,050  4,442,202  4,537,869  Total interest-bearing liabilities  5,731,899  5,912,774  5,877,740  5,865,045  5,838,307  Stockholders' equity  576,512  557,414  564,255  570,198  559,209                    Performance Ratios (3)                 Return on average assets  0.81% 1.01% 0.62% 0.58% 0.55% Return on average equity  9.94  13.11  7.60  7.30  6.76  Yield on average interest-earning assets (4)  3.84  3.81  4.22  3.88  4.26  Cost of average interest-bearing liabilities  0.98  1.09  2.07  1.27  2.01  Cost of funds  0.89  0.99  1.94  1.16  1.88  Net interest rate spread during period (4)  2.86  2.72  2.15  2.61  2.25  Net interest margin (4)  3.00  2.87  2.37  2.77  2.47  Non-interest expense to average assets  1.69  1.60  1.49  1.70  1.65  Efficiency ratio (5)  55.37  54.92  58.87  59.12  63.52  Average interest-earning assets to average interest-bearing liabilities  1.16X 1.15X 1.12X 1.15X 1.12X * * *(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 the nine At or for the year At or for the nine    months ended ended months ended    September 30, 2020 December 31, 2019 September 30, 2019              Selected Financial Ratios and Other Data                       Regulatory capital ratios (for Flushing Financial Corporation):           Tier 1 capital $630,380 $615,500 $606,844  Common equity Tier 1 capital  593,344  572,651  564,466  Total risk-based capital  740,499  712,251  703,879              Tier 1 leverage capital (well capitalized = 5%)  9.03% 8.73% 8.71% Common equity Tier 1 risk-based capital (well capitalized = 6.5%)  11.02  10.95  10.73  Tier 1 risk-based capital (well capitalized = 8.0%)  11.71  11.77  11.53  Total risk-based capital (well capitalized = 10.0%)  13.76  13.62  13.37              Regulatory capital ratios (for Flushing Bank only):           Tier 1 capital $694,041 $680,749 $673,084  Common equity Tier 1 capital  694,041  680,749  673,084  Total risk-based capital  729,160  702,500  695,120              Tier 1 leverage capital (well capitalized = 5%)  9.93% 9.65% 9.66% Common equity Tier 1 risk-based capital (well capitalized = 6.5%)  12.88  13.02  12.79  Tier 1 risk-based capital (well capitalized = 8.0%)  12.88  13.02  12.79  Total risk-based capital (well capitalized = 10.0%)  13.54  13.43  13.21              Capital ratios:           Average equity to average assets  8.00% 8.08% 8.09% Equity to total assets  8.30  8.26  7.99  Tangible common equity to tangible assets (1)  8.10  8.05  7.79              Asset quality:           Non-accrual loans (2) $24,792 $12,813 $14,260  Non-performing loans  24,792  13,258  14,705  Non-performing assets  24,827  13,532  14,979  Net charge-offs  2,993  2,005  2,039              Asset quality ratios:           Non-performing loans to gross loans  0.42% 0.23% 0.26% Non-performing assets to total assets  0.35  0.19  0.21  Allowance for loan losses to gross loans  0.65  0.38  0.38  Allowance for loan losses to non-performing assets  154.44  160.73  147.11  Allowance for loan losses to non-performing loans  154.66  164.05  149.85              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    September 30, 2020 June 30, 2020 September 30, 2019    Average    Yield/ Average    Yield/ Average    Yield/    Balance Interest Cost Balance Interest Cost Balance Interest Cost                                  Interest-earning Assets:                          Mortgage loans, net $4,721,742 $49,814  4.22 %$4,762,068 $49,719 4.18%$4,598,898 $50,462 4.39% Other loans, net  1,182,309  10,553  3.57   1,184,344  10,838 3.66  1,046,605  12,363 4.72  Total loans, net (1) (2)  5,904,051  60,367  4.09   5,946,412  60,557 4.07  5,645,503  62,825 4.45  Taxable securities:                          Mortgage-backed securities  413,902  1,928  1.86   465,365  2,327 2.00  574,756  3,765 2.62  Other securities  243,754  1,166  1.91   243,867  1,358 2.23  244,757  1,982 3.24  Total taxable securities  657,656  3,094  1.88   709,232  3,685 2.08  819,513  5,747 2.81  Tax-exempt securities: (3)                          Other securities  51,652  557  4.31   60,280  643 4.27  65,709  706 4.30  Total tax-exempt securities  51,652  557  4.31   60,280  643 4.27  65,709  706 4.30  Interest-earning deposits and federal funds sold  62,537  13  0.08   93,911  22 0.09  58,773  259 1.76  Total interest-earning assets  6,675,896  64,031  3.84   6,809,835  64,907 3.81  6,589,498  69,537 4.22  Other assets  407,132       396,224       382,905       Total assets $7,083,028      $7,206,059      $6,972,403                                                             Interest-bearing Liabilities:                          Deposits:                          Savings accounts $160,100  65  0.16  $188,587  74 0.16 $194,736  344 0.71  NOW accounts  1,625,109  1,242  0.31   1,440,147  2,099 0.58  1,347,145  5,654 1.68  Money market accounts  1,461,996  2,108  0.58   1,580,652  3,208 0.81  1,306,634  6,859 2.10  Certificate of deposit accounts  1,106,355  3,700  1.34   1,185,842  4,564 1.54  1,573,535  9,321 2.37  Total due to depositors  4,353,560  7,115  0.65   4,395,228  9,945 0.91  4,422,050  22,178 2.01  Mortgagors' escrow accounts  55,868  (22) (0.16)  87,058  26 0.12  60,084  66 0.44  Total interest-bearing deposits  4,409,428  7,093  0.64   4,482,286  9,971 0.89  4,482,134  22,244 1.99  Borrowings  1,322,471  6,897  2.09   1,430,488  6,084 1.70  1,395,606  8,196 2.35  Total interest-bearing liabilities  5,731,899  13,990  0.98   5,912,774  16,055 1.09  5,877,740  30,440 2.07  Non interest-bearing demand deposits  589,674       560,637       400,762       Other liabilities  184,943       175,234       129,646       Total liabilities  6,506,516       6,648,645       6,408,148       Equity  576,512       557,414       564,255       Total liabilities and equity $7,083,028      $7,206,059      $6,972,403                                  Net interest income / net interest rate spread (tax equivalent) (3)    $50,041  2.86 %   $48,852 2.72%   $39,097 2.15%                            Net interest-earning assets / net interest margin (tax equivalent) $943,997    3.00 %$897,061    2.87%$711,758    2.37%                            Ratio of interest-earning assets to interest-bearing liabilities       1.16 X      1.15X      1.12X * * *(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.8 million, $0.3 million and $0.9 million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively. (2) Loan interest income includes net gains (losses) from fair value adjustments on qualifying hedges of $0.2 million, ($0.4) million and ($1.3) million for the three months ended September 30, 2020, June 30, 2020 and September 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 nine months ended    September 30, 2020 September 30, 2019    Average   Yield/ Average   Yield/    Balance Interest Cost Balance Interest Cost  Interest-earning Assets:                   Mortgage loans, net $4,727,094 $148,945  4.20%$4,602,896 $151,513 4.39% Other loans, net  1,154,764  33,088  3.82  982,549  35,915 4.87  Total loans, net (1) (2)  5,881,858  182,033  4.13  5,585,445  187,428 4.47  Taxable securities:                   Mortgage-backed securities  462,216  7,295  2.10  578,020  12,238 2.82  Other securities  243,782  4,221  2.31  243,071  6,328 3.47  Total taxable securities  705,998  11,516  2.17  821,091  18,566 3.01  Tax-exempt securities: (3)                   Other securities  58,464  1,876  4.28  60,010  1,895 4.21  Total tax-exempt securities  58,464  1,876  4.28  60,010  1,895 4.21  Interest-earning deposits and federal funds sold  88,659  325  0.49  83,963  1,286 2.04  Total interest-earning assets  6,734,979  195,750  3.88  6,550,509  209,175 4.26  Other assets  396,871        360,568       Total assets $7,131,850       $6,911,077                                               Interest-bearing Liabilities:                   Deposits:                   Savings accounts $180,829  420  0.31 $200,246  1,053 0.70  NOW accounts  1,495,473  7,989  0.71  1,458,801  18,326 1.67  Money market accounts  1,579,712  12,358  1.04  1,340,841  20,654 2.05  Certificate of deposit accounts  1,186,188  15,031  1.69  1,537,981  26,326 2.28  Total due to depositors  4,442,202  35,798  1.07  4,537,869  66,359 1.95  Mortgagors' escrow accounts  69,427  44  0.08  68,678  181 0.35  Total interest-bearing deposits  4,511,629  35,842  1.06  4,606,547  66,540 1.93  Borrowings  1,353,416  20,047  1.97  1,231,760  21,476 2.32  Total interest-bearing liabilities  5,865,045  55,889  1.27  5,838,307  88,016 2.01  Non interest-bearing demand deposits  533,563        398,085       Other liabilities  163,044        115,476       Total liabilities  6,561,652        6,351,868       Equity  570,198        559,209       Total liabilities and equity $7,131,850       $6,911,077                           Net interest income / net interest rate spread  (tax equivalent) (3)    $139,861  2.61%   $121,159 2.25% Net interest-earning assets / net interest margin (tax equivalent) $869,934     2.77%$712,202    2.47% Ratio of interest-earning assets to interest-bearing liabilities        1.15X      1.12X (1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $1.3 million and $1.7 million for the nine months ended September 30, 2020 and 2019, respectively. (2) Loan interest income includes net losses from fair value adjustments on qualifying hedges of $2.2 million and $2.7 million for the nine months ended September 30, 2020 and 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 $0.4 million for each of the nine month periods ended September 30, 2020 and 2019. FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES DEPOSIT COMPOSITION (Unaudited)              September 2020 vs.     September 2020 vs.    September 30, June 30, March 31, December 31, December 2019  September 30, September 2019  (Dollars in thousands) 2020 2020 2020 2019 % Change  2019 % Change  Deposits                      Non-interest bearing $607,954 $581,881 $489,198 $435,072 39.7 % $421,786 44.1 % Interest bearing:                      Certificate of deposit accounts  1,051,644  1,135,977  1,172,381  1,437,890 (26.9)%  1,506,376 (30.2)% Savings accounts  160,294  184,895  192,192  191,485 (16.3)%  193,497 (17.2)% Money market accounts  1,381,552  1,474,880  1,597,109  1,592,011 (13.2)%  1,329,156 3.9 % NOW accounts  1,704,915  1,672,241  1,377,555  1,365,591 24.8 %  1,461,694 16.6 % Total interest-bearing deposits  4,298,405  4,467,993  4,339,237  4,586,977 (6.3)%  4,490,723 (4.3)%                        Total deposits $4,906,359 $5,049,874 $4,828,435 $5,022,049 (2.3)% $4,912,509 (0.1)% FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES LOANS (Unaudited)Loan Closings                   For the three months ended For the nine months ended    September 30, June 30,  September 30,  September 30, September 30, (In thousands) 2020 2020 2019 2020 2019 Multi-family residential $33,733 $59,654 $60,454 $160,705 $143,297 Commercial real estate  26,644  8,003  66,648  134,218  123,289 One-to-four family – mixed-use property  3,867  8,117  18,167  25,439  47,475 One-to-four family – residential  2,296  2,674  7,421  13,383  19,191 Co-operative apartments  —  —  1,817  704  2,117 Construction  5,420  2,821  5,761  14,990  30,377 Small Business Administration (1)  18,456  93,241  121  111,754  2,705 Commercial business and other  65,160  59,287  237,754  226,895  524,113 Total $155,576 $233,797 $398,143 $688,088 $892,564                  (1) Includes $18.4 million and $93.2 million of PPP closings for the three months ended September 30, 2020 and June 30, 2020, respectively. Includes $111.6 million of PPP closings for the nine months ended September 30, 2020.Loan Composition              September 2020 vs.     September 2020 vs.    September 30, June 30, March 31, December 31, December 2019   September 30, September 2019  (Dollars in thousands) 2020  2020  2020  2019  % Change  2019  % Change  Loans held for investment:                      Multi-family residential $2,252,757  $2,285,555  $2,272,343  $2,238,591  0.6 % $2,232,305  0.9 % Commercial real estate  1,636,659   1,646,085   1,664,934   1,582,008  3.5 %  1,559,581  4.9 % One-to-four family ― mixed-use property  585,159   591,347   592,109   592,471  (1.2)%  587,100  (0.3)% One-to-four family ― residential  191,011   184,741   189,774   188,216  1.5 %  184,432  3.6 % Co-operative apartments  8,132   8,423   8,493   8,663  (6.1)%  9,089  (10.5)% Construction  63,567   69,433   66,727   67,754  (6.2)%  64,234  (1.0)% Small Business Administration (1)  124,649   106,813   14,076   14,445  762.9 %  13,982  791.5 % Taxi medallion  2,317   3,269   3,281   3,309  (30.0)%  3,513  (34.0)% Commercial business and other  1,063,429   1,073,623   1,104,967   1,061,478  0.2 %  1,096,164  (3.0)% Net unamortized premiums and unearned loan fees  13,718   13,986   15,384   15,271  (10.2)%  15,363  (10.7)% Allowance for loan losses  (38,343)  (36,710)  (28,098)  (21,751) 76.3 %  (22,035) 74.0 % Net loans $5,903,055  $5,946,565  $5,903,990  $5,750,455  2.7 % $5,743,728  2.8 % (1) Includes $111.6 million and $93.2 million of PPP loans at September 30, 2020 and June 30, 2020, respectively.Net Loans Activity  Three Months Ended   September 30, June 30, March 31, December 31, September 30, (In thousands)  2020  2020  2020  2019  2019  Loans originated and purchased $155,576  $233,797  $298,715  $269,736  $398,143  Principal reductions  (196,221)  (180,182)  (137,189)  (255,977)  (266,894) Loans sold  —   —   (498)  (7,129)  (3,553) Loan charge-offs  (964)  (1,030)  (1,259)  (95)  (431) Foreclosures  —   —   —   —   —  Net change in deferred fees and costs  (268)  (1,398)  113   (92)  85  Net change in the allowance for loan losses  (1,633)  (8,612)  (6,347)  284   (525) Total loan activity $(43,510) $42,575  $153,535  $6,727  $126,825  FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES NON-PERFORMING ASSETS and NET CHARGE-OFFS (Unaudited)Non-Performing Assets  September 30, June 30, March 31, December 31, September 30,  (Dollars in thousands) 2020 2020 2020 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  2,661  3,688  2,741  2,296  3,132  Commercial real estate  2,657  2,671  8  367  872  One-to-four family - mixed-use property (1)  1,366  2,511  607  274  683  One-to-four family - residential  6,454  6,412  5,158  5,139  5,050  Small Business Administration  1,151  1,321  1,518  1,151  1,151  Taxi medallion(1)  2,218  1,757  1,761  1,641  1,352  Commercial business and other(1)  8,285  1,678  4,959  1,945  2,020  Total  24,792  20,038  16,752  12,813  14,260                    Total Non-performing Loans  24,792  20,188  16,752  13,258  14,705                    Other Non-performing Assets:                 Real estate acquired through foreclosure  —  208  208  239  239  Other asset acquired through foreclosure  35  35  35  35  35  Total  35  243  243  274  274                    Total Non-performing Assets $24,827 $20,431 $16,995 $13,532 $14,979                    Non-performing Assets to Total Assets  0.35% 0.29% 0.23% 0.19% 0.21% Allowance For Loan Losses to Non-performing Loans  154.7% 181.8% 167.7% 164.1% 149.8% * * *(1) Not included in the above analysis are non-accrual performing one-to-four family mixed use property loans totaling $0.3 million; non-accrual performing TDR taxi medallion loans totaling $0.1 million in 3Q20, $1.5 million in 2Q20, $1.5 million in 1Q20, $1.7 million in 4Q19 and $2.2 million in 3Q19, and non-accrual performing TDR commercial business loans totaling $1.0 million in 3Q20, 2Q20, 1Q20 and 3Q19 respectively, and $0.9 million in 4Q19.Net Charge-Offs (Recoveries)  Three Months Ended   September 30, June 30, March 31, December 31, September 30, (In thousands) 2020  2020  2020  2019  2019  Multi-family residential $(14) $(7) $(6) $(14) $183  Commercial real estate  —   —   —   (30)  —  One-to-four family – mixed-use property  (60)  3   (78)  119   (140) One-to-four family – residential  (2)  (3)  (5)  (3)  (3) Small Business Administration  (47)  165   (7)  (8)  (32) Taxi medallion  951   —   —   —   —  Commercial business and other  9   849   1,245   (98)  150  Total net loan charge-offs (recoveries) $837  $1,007  $1,149  $(34) $158                        FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES FORBEARANCES DETAIL (Dollars in thousands) (Unaudited)  Forbearances (1) Backed by Mortgages (1)    Balance % of Sector  Balance % of Forbearances LTV  Higher Risk Segments               Restaurants and Catering Halls $22,228 29.2% $22,228 100.0%37.7% Hotels  105,942 60.0   105,942 100.0 61.9  Travel and Leisure  37,670 20.8   33,918 90.0 36.4  Retail Services (2)  299 0.3   — — —  CRE - Shopping Center  74,746 29.6   74,746 100.0 39.8  CRE - Single Tenant  14,366 10.9   14,366 100.0 38.0  CRE - Strip Mall  85,921 31.0   85,921 100.0 51.1  Transportation (2)  4,621 3.9   1,802 39.0 40.5  Contractors (2)  4,935 2.2   3,598 72.9 33.7  Schools and Child Care  14,200 27.4   8,701 61.3 42.6  Subtotal $364,928 23.0% $351,222 96.2%46.7%                 Lower Risk Segments $481,296 11.1% $472,629 98.2%44.6%                 Total $846,224 14.3% $823,851 97.4%45.5%                 * * *   (1)        Represents dollar amount granted at modification    (2)        Loans not backed by mortgages are collateralized by equipment FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS and CORE EARNINGSNon-cash Fair Value Adjustments to GAAP EarningsThe 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    Nine Months Ended       September 30,     June 30,    September 30,     September 30,     September 30,     2020  2020  2019 2020  2019                     GAAP income before income taxes $ 18,820  $ 24,080  $ 13,260 $ 41,304  $ 36,443                     Net (gain) loss from fair value adjustments   2,225    (10,205)   2,124   (1,987)   6,160   Net loss on sale of securities   —    54    —   91    15   Life insurance proceeds   —    (659)   —   (659)   (43)  Net gain on sale of assets   —    —    —   —    (770)  Net (gain) loss from fair value adjustments on qualifying hedges   (230)   365    1,262   2,208    2,717   Accelerated employee benefits upon Officer's death   —    —    —   —    455   Merger expense   422    194    510   1,545    510                     Core income before taxes   21,237    13,829    17,156   42,502    45,487                     Provision for income taxes for core income   5,069    3,532    3,312   10,537    10,116                     Core net income $ 16,168  $ 10,297  $ 13,844 $ 31,965  $ 35,371                     GAAP diluted earnings per common share $ 0.50  $ 0.63  $ 0.37 $ 1.08  $ 0.99                     Net (gain) loss from fair value adjustments, net of tax   0.06    (0.27)   0.06   (0.05)   0.17   Net loss on sale of securities, net of tax   —    —    —   —    —   Life insurance proceeds   —    (0.02)   —   (0.02)   —   Net gain on sale of assets, net of tax   —    —    —   —    (0.02)  Net (gain) loss from fair value adjustments on qualifying hedges, net of tax   (0.01)   0.01    0.04   0.06    0.07   Accelerated employee benefits upon Officer's death, net of tax   —    —    —   —    0.01   Merger expense, net of tax   0.01    0.01    0.01   0.04    0.01                     Core diluted earnings per common share(1) $ 0.56  $ 0.36  $ 0.48 $ 1.11  $ 1.23                                       Core net income, as calculated above $ 16,168  $ 10,297  $ 13,844 $ 31,965  $ 35,371   Average assets   7,083,028    7,206,059    6,972,403   7,131,850    6,911,077   Average equity   576,512    557,414    564,255   570,198    559,209   Core return on average assets(2)   0.91 %    0.57 %    0.79%    0.60 %    0.68 % Core return on average equity(2)   11.22 %    7.39 %    9.81%    7.47 %    8.43 % * * *(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    Nine Months Ended    September 30, June 30, September 30, September 30, September 30,    2020  2020  2019  2020  2019                     Net interest income $49,924  $48,717  $38,949  $139,467  $120,761                     Non-interest income  1,351   13,737   1,039   12,224   4,433   Non-interest expense  (29,985)  (28,755)  (26,045)  (91,120)  (85,622)                                      Pre-provision pre-tax net revenue (1) $21,290  $33,699  $13,943  $60,571  $39,572                     (1) Includes non-cash net gains (losses) from fair value adjustments totaling ($2.0) million, $9.8 million and ($3.4) million for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively and ($0.2) million and ($8.9) million for the nine months ended September 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 Nine Months Ended    September 30, June 30, September 30, September 30, September 30,    2020  2020  2019  2020  2019   GAAP net interest income $49,924  $48,717  $38,949  $139,467  $120,761   Net (gain) loss from fair value adjustments on qualifying hedges  (230)  365   1,262   2,208   2,717   Core net interest income $49,694  $49,082  $40,211  $141,675  $123,478                                       GAAP interest income on total loans, net $60,367  $60,557  $62,825  $182,033  $187,428   Net (gain) loss from fair value adjustments on qualifying hedges  (230)  365   1,262   2,208   2,717   Prepayment penalties received on loans  (1,357)  (702)  (1,697)  (2,812)  (3,622)  Net recoveries of interest from non-accrual loans  (86)  (74)  (292)  (596)  (1,525)  Core interest income on total loans, net $58,694  $60,146  $62,098  $180,833  $184,998   Average total loans, net $5,904,051  $5,946,412  $5,645,503  $5,881,858  $5,585,445   Core yield on total loans  3.98 % 4.05 % 4.40 % 4.10 % 4.42 %                                     Net interest income tax equivalent $50,041  $48,852  $39,097  $139,861  $121,159   Net (gain) loss from fair value adjustments on qualifying hedges  (230)  365   1,262   2,208   2,717   Prepayment penalties received on loans and securities  (1,432)  (702)  (1,697)  (2,887)  (3,622)  Net recoveries of interest from non-accrual loans  (86)  (74)  (292)  (596)  (1,525)  Net interest income used in calculation of Core net interest margin $48,293  $48,441  $38,370  $138,586  $118,729   Total average interest-earning assets $6,675,896  $6,809,835  $6,589,498  $6,734,979  $6,550,509   Core net interest margin  2.89 % 2.85 % 2.33 % 2.74 % 2.42 % FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CALCULATION OF TANGIBLE STOCKHOLDERS’ COMMON EQUITY to TANGIBLE ASSETS (Unaudited)              September 30, December 31, September 30,  (Dollars in thousands) 2020  2019  2019   Total Equity $586,406  $579,672  $568,392   Less:           Goodwill  (16,127)  (16,127)  (16,127)  Intangible deferred tax liabilities  292   292   286   Tangible Stockholders' Common Equity $570,571  $563,837  $552,551               Total Assets $7,063,056  $7,017,776  $7,110,895   Less:           Goodwill  (16,127)  (16,127)  (16,127)  Intangible deferred tax liabilities  292   292   286   Tangible Assets $7,047,221  $7,001,941  $7,095,054               Tangible Stockholders' Common Equity to Tangible Assets  8.10 % 8.05 % 7.79 % __________________________________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

  • Flushing Financial Corporation and Empire Bancorp, Inc. Announce Receipt of Empire Shareholder Approval of Merger
    GlobeNewswire

    Flushing Financial Corporation and Empire Bancorp, Inc. Announce Receipt of Empire Shareholder Approval of Merger

    UNIONDALE, N.Y. and ISLANDIA, N.Y., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (Nasdaq: FFIC), parent company of Flushing Bank, and Empire Bancorp, Inc. (OTCQX: EMPK), parent company of Empire National Bank, announced today that Empire Bancorp has received the requisite approval of its shareholders for the merger of Empire Bancorp and Flushing Financial. As previously announced, the required regulatory approvals for the merger have already been obtained. Flushing Financial and Empire Bancorp also announced that the closing of the merger is scheduled for on or about October 31, 2020. John R. Buran, President and CEO of Flushing Financial Corporation, stated, “We are pleased that Empire Bancorp shareholders have approved the merger enabling us to complete our acquisition of Empire Bancorp. This acquisition will increase core deposits, lower cost of funds, improve loan to deposit ratios, and enhance our core earnings power. Additionally, Flushing Bank’s reach will be expanded into Suffolk County creating a stronger community bank with a network of 24 branches in Queens, Brooklyn, Manhattan, and on Long Island.”Douglas C. Manditch, Chairman and CEO of Empire Bancorp, stated, “We are excited about the opportunities that this merger offers our organization and are confident that it will deliver value to our customers, shareholders, and the communities we serve.”About Flushing Financial CorporationFlushing 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. Flushing 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, Flushing 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. 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.About Empire BancorpEmpire Bancorp is a bank holding company for Empire National Bank, a Long Island-based independent bank that specializes in serving the financial services needs of privately-owned small and medium-sized businesses, professionals, nonprofit organizations, real estate investors and consumers through a wide variety of tailored loan and deposit products and business banking services. Empire National Bank has four full-service banking offices located in Islandia, Shirley, Port Jefferson Station, and Mineola. Cautionary Notes on Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include: management plans relating to the proposed transaction; the expected timing of the completion of the proposed transaction; the ability to complete the proposed transaction; any statements of the plans and objectives of management for future operations, products or services, including the execution of integration plans relating to the proposed transaction; any statements of expectation or belief; projections related to certain financial metrics; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “seek,” “plan,” “may,” “will,” “should,” “could,” “would,” “target,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions or negatives of these words. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Neither Flushing nor Empire assumes any duty and does not undertake to update any forward-looking statements. Because forward-looking statements are by their nature, to different degrees, uncertain and subject to assumptions, actual results or future events could differ, possibly materially, from those that Flushing or Empire anticipated in its forward-looking statements, and future results could differ materially from historical performance.Factors that could cause or contribute to such differences include, but are not limited to, those included under Item 1A “Risk Factors” in Flushing’s Annual Report on Form 10-K as of December 31, 2019 and those disclosed in Flushing’s other periodic reports filed with the Securities and Exchange Commission (the “SEC”), as well as the possibility that the expected benefits of the proposed transaction may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the proposed transaction may not be timely completed, if at all; that prior to the completion of the proposed transaction or thereafter, Flushing’s and Empire’s respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies related to the proposed transaction; that required regulatory, shareholder or other approvals are not obtained or other customary closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies’ shareholders, customers, employees and other constituents to the proposed transaction; and diversion of management time on merger-related matters. These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/ prospectus included in the registration statement on Form S-4 filed with the SEC in connection with the proposed transaction, as amended and supplemented from time to time. While the list of factors presented here and the list of factors presented in the registration statement on Form S-4 are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. For any forward-looking statements made in this report or in any documents, Flushing and Empire claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.Contact:Flushing Financial Corporation:Empire Bancorp, Inc. Susan K. CullenWilliam Franz Senior Executive Vice President, SVP, Director of Marketing & Chief Financial OfficerInvestor Relations (718) 961-5400(631) 348-4444

  • GlobeNewswire

    Flushing Financial Corporation Announces Receipt of Remaining Regulatory Approvals for Acquisition of Empire Bancorp, Inc.

    Empire Special Shareholder Meeting Date and Election Deadline EstablishedUNIONDALE and ISLANDIA, N.Y., Sept. 21, 2020 (GLOBE NEWSWIRE) -- John R. Buran, President and CEO of Flushing Financial Corporation (“Flushing”) (NASDAQ- GS: FFIC) announced, “We are pleased that we have received all remaining approvals from the banking regulators to move forward on our acquisition of Empire Bancorp, Inc. (“Empire”) (OTC: EMPK). The transaction is expected to close effective on or about October 31, 2020. This acquisition will bring together two organizations with similar cultures and values, creating one of Long Island’s largest community banks by deposit share. We will create a community bank of superior scale and operational leverage enabling us to improve service to our customers, reduce costs and enhance shareholder value. The merger will expand Flushing’s presence on Long Island, a market of over 140,000 businesses with consumers having a median household income of over $100,000. We expect earnings accretion of 20% in 2021 with additional future opportunities as we build upon Empire’s business relationships.” Douglas C. Manditch, President and CEO of Empire stated, “We believe the combination of these two strong community banks will further lever the significant investments both entities have made in people, processes and technology and positively impact our earnings potential. Empire will hold a special shareholders meeting on October 27, 2020 with the proxy materials for the meeting being mailed to each shareholder on or about September 25, 2020. The deadline for the process in which each Empire shareholder will have the opportunity to elect cash or stock consideration, subject to the allocation and proration procedures set forth in the Agreement and Plan of Merger, dated as of October 24, 2019, will be October 27, 2020. The election materials will be mailed to Empire shareholders at the same time as the proxy materials for the special meeting of Empire shareholders. The closing of the merger of Empire with and into Flushing remains subject to the approval of the Empire shareholders at the special meeting, as well as other customary closing conditions.”About Flushing Financial CorporationFlushing 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. Flushing 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 teams create 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. Flushing 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 may be obtained by visiting Flushing’s website at http://www.flushingbank.com.About Empire Bancorp, Inc.Empire Bancorp, Inc. (OTC: EMPK) is a bank holding company for Empire Bank, a Long Island-based independent bank that specializes in serving the financial services needs of privately-owned small and medium-sized businesses, professionals, nonprofit organizations, real estate investors and consumers through a wide variety of tailored loan and deposit products and business banking services. Empire Bank has four full-service banking offices located in Islandia, Shirley, Port Jefferson Station, and Mineola.Cautionary Notes on Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include: management plans relating to the proposed transaction; the expected timing of the completion of the proposed transaction; the ability to complete the proposed transaction; the ability to obtain any required regulatory, shareholder or other approvals; any statements of the plans and objectives of management for future operations, products or services, including the execution of integration plans relating to the proposed transaction; any statements of expectation or belief; projections related to certain financial metrics; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “seek,” “plan,” “may,” “will,” “should,” “could,” “would,” “target,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions or negatives of these words. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time and are beyond our control. Forward-looking statements speak only as of the date they are made. Neither Flushing nor Empire assumes any duty and does not undertake to update any forward-looking statements. Because forward-looking statements are by their nature, to different degrees, uncertain and subject to assumptions, actual results or future events could differ, possibly materially, from those that Flushing or Empire anticipated in its forward-looking statements, and future results could differ materially from historical performance.Factors that could cause or contribute to such differences include, but are not limited to, those included under Item 1A “Risk Factors” in Flushing’s Annual Report on Form 10-K as of December 31, 2019 and those disclosed in Flushing’s other periodic reports filed with the SEC, as well as the possibility that the expected benefits of the proposed transaction may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the proposed transaction may not be timely completed, if at all; that prior to the completion of the proposed transaction or thereafter, Flushing’s and Empire’s respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies related to the proposed transaction; that required regulatory, shareholder or other approvals are not obtained or other customary closing conditions are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies’ shareholders, customers, employees and other constituents to the proposed transaction; and diversion of management time on merger-related matters. These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the proxy statement/prospectus that is included in the registration statement on Form S-4 filed with the SEC in connection with the proposed transaction, as amended and supplemented from time to time. While the list of factors presented here and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. For any forward-looking statements made in this report or in any documents, Flushing and Empire claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.Additional Information and Where to Find ItIn connection with the merger, Flushing filed a supplement to the registration statement on Form S-4 with the SEC, and Flushing’s supplement to the registration statement, as amended, was declared effective by the SEC on September 21, 2020. Flushing may file other documents with the SEC regarding the merger. A definitive proxy statement/prospectus will be mailed to Empire shareholders on or about September 25, 2020. Before making any voting or investment decision, investors and shareholders of Flushing and Empire are urged to carefully read the entire registration statement, proxy statement/prospectus and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about the merger. Copies of the registration statement, the proxy statement/prospectus (each as amended and supplemented from time to time) and other relevant documents filed with the SEC may be obtained free of charge from the SEC’s website at www.sec.gov, from Flushing by sending a written request to Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, Flushing Financial Corporation, at 220 RXR Plaza, Uniondale, New York 11556, telephone (718) 961-5400, or from Empire by sending a written request to Empire Bancorp, 1707 Veterans Highway, Islandia, NY 11749, Attn: William Franz or calling 631-348- 4444.Investors and shareholders are also urged to carefully review and consider Flushing’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and proxy statements. The documents filed by Flushing with the SEC may be obtained free of charge from the SEC’s website at www.sec.gov or through a link on Flushing’s website at www.flushingbank.com. These documents may also be obtained free of charge from Flushing by sending a written request to Susan K. Cullen, Senior Executive Vice President and Chief Financial Officer, Flushing Financial Corporation, at 220 RXR Plaza, Uniondale, New York 11556, telephone (718) 961-5400.Participants in the SolicitationFlushing, Empire and certain of their respective directors and executive officers, under the SEC’s rules, may be deemed to be participants in the solicitation of proxies of Empire’s shareholders in connection with the proposed transaction. Information about the directors and executive officers of Flushing and their ownership of Flushing common stock is set forth in the proxy statement for Flushing’s 2020 Annual Meeting of Stockholders filed with the SEC on April 16, 2020. Information about the directors and executive officers of Empire is available on Empire’s website at empirenb.com. Additional information regarding the interests of those participants and other persons who may be deemed participants in the solicitation of proxies from Empire’s shareholders in connection with the proposed transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction, as amended and supplemented from time to time. Free copies of the proxy statement/prospectus, as amended and supplemented from time to time, may be obtained as described in the preceding paragraph.No Offer or SolicitationThis communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.Contact:     Flushing Financial CorporationEmpire Bancorp, Inc. Susan K. CullenWilliam Franz Senior Executive Vice President,SVP, Director of Marketing & Chief Financial OfficerInvestor Relations (718) 961-5400(631) 348-4444