Flushing Financial Corporation Reports First Quarter 2026 Results; Net Interest Margin Expands 16 Basis Points Year Over Year; 1Q26 GAAP and Core EPS of $0.17 and $0.29, Respectively

About this update from Flushing Financial Corporation

"Our first quarter results demonstrate the strength of this franchise as we move toward closing our transaction with OceanFirst Financial Corp. Noninterest bearing deposits grew to $995.5 million , up 15% year over year, and our cost of funds declined 13 basis points from the prior quarter, driving a net interest rate margin that has expanded 16 basis points year over year. Core net income grew 25% year over year, driven by sustained net interest income growth and an improved funding mix. With a loan pipeline of $327.4 million at quarter end, up 55% year over year, we enter this next chapter from a position of strength. We look forward to completing the transaction with OceanFirst Financial Corp. and to the expanded capabilities and opportunities their platform will bring to the customers and communities we serve." - John R. Buran , President and CEO UNIONDALE, NY / ACCESS Newswire / April 28, 2026 / Net Interest Margin Expansion and Noninterest Deposit Growth. The Company reported 1Q26 GAAP and Core EPS of $0.17 and $0.29 , compared to ( $0.29 ) and $0.23 , respectively, a year ago. During the quarter, NIM on a GAAP basis expanded 16 basis points year over year to 2.67% while Core NIM expanded 17 basis points year over year, driven by lower deposit costs and growth in noninterest bearing deposits. Average net loans decreased 2.0% YoY and 0.8% QoQ consistent with the Company's focus on disciplined pricing and credit standards. The loan pipeline increased 54.9% year over year and 18.8% quarter over quarter to $327.4 million at March 31, 2026 . Stable Capital and Stable Credit Metrics. NPAs to assets were 77 bps, compared to 71 bps a year ago and 68 bps in the prior quarter. Net charge-offs to average loans were 3 bps in 1Q26, compared to 27 bps in 1Q25 and 11 bps in 4Q25. TCE/TA1 was 7.86% at March 31, 2026 , compared to 7.79% a year ago and 8.14% at December 31, 2025 . Key Financial Metrics2 1Q26 4Q25 3Q25 2Q25 1Q25 GAAP: Earnings (Loss) per Share $ 0.17 $ 0.12 $ 0.30 $ 0.41 $ (0.29 ) ROAA (%) 0.26 0.18 0.48 0.64 (0.43 ) ROAE (%) 3.26 2.24 5.86 8.00 (5.36 ) NIM FTE3 (%) 2.67 2.68 2.64 2.54 2.51 Core: EPS $ 0.29 $ 0.32 $ 0.35 $ 0.32 $ 0.23 ROAA (%) 0.45 0.49 0.55 0.50 0.35 ROAE (%) 5.56 6.08 6.71 6.29 4.34 Core NIM FTE (%) 2.66 2.66 2.62 2.52 2.49 Credit Quality: NPAs/Assets (%) 0.77 0.68 0.70 0.75 0.71 ACLs/Loans (%) 0.68 0.64 0.63 0.62 0.59 ACLs/NPLs (%) 87.92 102.98 93.28 83.76 86.54 NCOs/Avg Loans (%) 0.03 0.11 0.07 0.15 0.27 Balance Sheet: Avg Loans ($B) $ 6.5 $ 6.6 $ 6.6 $ 6.7 $ 6.7 Avg Dep ($B) $ 7.5 $ 7.5 $ 7.3 $ 7.6 $ 7.6 Book Value/Share $ 20.58 $ 20.96 $ 21.06 $ 20.91 $ 20.81 Tangible BV /Share $ 20.56 $ 20.94 $ 21.03 $ 20.89 $ 20.78 TCE/TA (%) 7.86 8.14 8.01 8.04 7.79 Note: In certain circumstances, reclassifications have been made to prior periods to conform to the current presentation. 1 Tangible Common Equity ("TCE")/Total Assets ("TA"). 2 See "Reconciliation of GAAP Earnings (Loss) and Core Earnings", "Reconciliation of GAAP Revenue and Pre-Provision Pre-Tax Net Revenue", and "Reconciliation of GAAP Net Interest Income Net Interest Margin to Core Net Interest Income and Net Interest Margin." 3 Net Interest Margin ("NIM") Fully Taxable Equivalent ("FTE"). 1Q26 Highlights Net interest margin FTE increased 16 bps YoY and decreased 1 bp QoQ to 2.67%; Core net interest margin FTE increased 17 bps YoY and stayed flat QoQ to 2.66%; Prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled 5 bps in 1Q26 compared to 3 bps in 1Q25 and 8 bps in 4Q25 Average total deposits decreased 0.9% YoY and 0.1% QoQ to $7.5 billion ; Average noninterest bearing deposits increased 12.9% YoY but decreased 0.5% QoQ totaling 12.9% of total average deposits compared to 11.3% in 1Q25 and 12.9% in 4Q25; Average CDs were $2.3 billion , down 12.8% YoY and 2.8% QoQ Period end loans decreased 2.7% YoY and 1.4% QoQ to $6.6 billion ; Back-to-back swap loan originations were $25.1 million compared to $18.0 million in 1Q25 and $45.5 million in 4Q25 and generated $0.4 million , $0.3 million , and $0.7 million of noninterest income, respectively; Loan pipeline increased 54.9% YoY and 18.8% QoQ to $327.4 million ; Approximately 13.6% of the loan pipeline consists of back-to-back swap loans NPAs totaled $68.2 million (77 bps of assets) in 1Q26 compared to $64.3 million (71 bps of assets) a year ago and $58.8 million (68 bps of assets) in the prior quarter Provision for credit losses was $2.0 million in 1Q26 compared to $4.3 million in 1Q25 and $2.7 million in 4Q25; Net charge-offs were $0.5 million in 1Q26 compared to $4.4 million in 1Q25 and $1.8 million in 4Q25; Allowance for loan losses to gross loans totaled 0.68% in 1Q26 compared to 0.59% in 1Q25 and 0.64% in 4Q25 Tangible Common Equity to Tangible Assets was 7.86% at March 31, 2026 , compared to 7.79% at March 31, 2025 , and 8.14% at December 31, 2025 ; Tangible book value per share was $20.56 at March 31, 2026 , compared to $20.78 a year ago and $20.94 for the prior quarter Income Statement Highlights YoY QoQ ($000s, except EPS) 1Q26 4Q25 3Q25 2Q25 1Q25 Change Change Net Interest Income $ 55,194 $ 55,506 $ 53,828 $ 53,209 $ 52,989 4.2 % (0.6 )% Provision for Credit Losses 2,011 2,745 1,531 4,194 4,318 (53.4 ) (26.7 ) Noninterest Income (Loss) 1,785 3,303 4,746 10,277 5,074 (64.8 ) (46.0 ) Noninterest Expense 46,775 48,228 43,365 40,356 59,676 (21.6 ) (3.0 ) Income (Loss) Before Income Taxes 8,193 7,836 13,678 18,936 (5,931 ) 238.1 4.6 Provision (Benefit) for Income Taxes 2,360 3,810 3,231 4,733 3,865 (38.9 ) (38.1 ) Net Income (Loss) $ 5,833 $ 4,026 $ 10,447 $ 14,203 $ (9,796 ) 159.5 44.9 Diluted Earnings (Loss) per Common Share $ 0.17 $ 0.12 $ 0.30 $ 0.41 $ (0.29 ) 158.6 41.7 Core Net Income1 $ 9,940 $ 10,918 $ 11,957 $ 11,162 $ 7,931 25.3 (9.0 ) Core EPS1 $ 0.29 $ 0.32 $ 0.35 $ 0.32 $ 0.23 26.1 (9.4 ) 1 See Reconciliation of GAAP Earnings (Loss) and Core Earnings Net interest income increased YoY and decreased QoQ. Net Interest Margin FTE of 2.67% increased 16 bps YoY but decreased 1 bp QoQ; The yield on interest earning assets decreased 12 bps QoQ to 5.46%, while the cost of funds decreased 13 bps QoQ. Prepayment penalty income, net reversals and recoveries of interest from nonaccrual and delinquent loans, net gains and losses from fair value adjustments on hedges, and purchase accounting accretion totaled $0.9 million (5 bps to NIM) in 1Q26 compared to $0.6 million (3 bps to NIM) in 1Q25 and $1.6 million (8 bps to NIM) in 4Q25 Excluding the items in the previous bullet, the net interest margin was 2.62% in 1Q26 compared to 2.48% in 1Q25 and 2.60% in 4Q25 The provision for credit losses decreased YoY and QoQ. Net charge-offs were $0.5 million (3 bps of average loans) in 1Q26 compared to $4.4 million (27 bps of average loans) in 1Q25 and $1.8 million (11 bps of average loans) in 4Q25 No systemic issues related to the charge-offs in 1Q26 Noninterest income decreased YoY and QoQ. Back-to-back swap loan closings of $25.1 million in 1Q26 (compared to $18.0 million in 1Q25 and $45.5 million in 4Q25) generated $0.4 million of noninterest income (compared to $0.3 million in 1Q25 and $0.7 million in 4Q25) Net gains (losses) from fair value adjustments were $(3.6) million ( $(0.07) per share, net of tax) in 1Q26 compared to ($0.2) million ( $0.00 ) per share, net of tax) in 1Q25 and $(2.0) million ( $(0.03) per share, net of tax) in 4Q25 Life Insurance proceeds were $0.1 million in 1Q26 Absent the items in the previous two bullets and other immaterial adjustments, core noninterest income was $5.2 million in 1Q26, down 3.2 % YoY and up 0.1% QoQ Noninterest expense decreased YoY and QoQ. GAAP noninterest expense was $46.8 million in 1Q26, down 21.6% YoY and 3.0% QoQ, reflecting the absence of the $17.6 million goodwill impairment recorded in 1Q25 and lower merger-related costs compared to 4Q25. Core noninterest expenses were $44.3 million in 1Q26, up 5.6% YoY and up 2.3% QoQ. GAAP noninterest expense to average assets was 2.12% in 1Q26 compared to 2.65% in 1Q25 and 2.18% in 4Q25 Provision for income taxes was $2.4 million in 1Q26 compared to $3.9 million in 1Q25 and $3.8 million in 4Q25. The effective tax rate was 28.8% in 1Q26 reflecting a more normalized rate compared to prior periods. The 1Q25 rate of (65.2%) was distorted by the non-deductible goodwill impairment charge, and the 4Q25 rate of 48.6% was elevated by non-deductible merger-related expenses. Balance Sheet, Credit Quality, and Capital Highlights YoY QoQ 1Q26 4Q25 3Q25 2Q25 1Q25 Change Change Averages ($MM) Loans $ 6,540 $ 6,592 $ 6,595 $ 6,678 $ 6,672 (2.0 )% (0.8 )% Total Deposits 7,492 7,497 7,346 7,607 7,561 (0.9 ) (0.1 ) Credit Quality ($000s) Nonperforming Loans $ 50,555 $ 41,564 $ 44,851 $ 49,247 $ 46,263 9.3 % 21.6 % Nonperforming Assets 68,169 58,825 62,129 66,125 64,263 6.1 15.9 Criticized and Classified Loans 102,213 83,718 74,108 72,005 89,673 14.0 22.1 Criticized and Classified Assets 119,827 100,979 91,386 88,883 107,673 11.3 18.7 Allowance for Credit Losses/Loans (%) 0.68 0.64 0.63 0.62 0.59 9 bp 4 bp Capital Book Value/Share $ 20.58 $ 20.96 $ 21.06 $ 20.91 $ 20.81 (1.1 )% (1.8 )% Tangible Book Value/Share 20.56 20.94 21.03 20.89 20.78 (1.1 ) (1.8 ) Tang. Common Equity/Tang. Assets (%) 7.86 8.14 8.01 8.04 7.79 7 bps (28 )bps Leverage Ratio (%) 8.48 8.52 8.64 8.31 8.12 36 (4 ) Average loans decreased YoY and QoQ. Period end loans totaled $6.6 billion , down 2.7% YoY and 1.4% QoQ Total loan closings were $161.5 million in 1Q26 compared to $174.1 million in 1Q25 and $261.4 million in 4Q25; the loan pipeline was $327.4 million at March 31, 2026 , up 54.9% YoY and 18.8% QoQ The diversified loan portfolio is approximately 90% collateralized by real estate with an average loan-to-value ratio of less than 35% Average total deposits decreased YoY and QoQ. Average noninterest bearing deposits increased 12.9% YoY and decreased 0.5% QoQ and comprised 12.9% of average total deposits in 1Q26 compared to 11.3% a year ago Average core deposits increased 5.3% YoY and 1.2% QoQ Credit Quality: Nonperforming loans increased YoY and QoQ. Nonperforming loans were 77 bps of gross loans in 1Q26 compared to 69 bps in 1Q25 and 63 bps in 4Q25 Criticized and classified loans were 156 bps of gross loans at 1Q26 compared to 133 bps at 1Q25 and 126 bps at 4Q25 Capital: Book value per common share and tangible book value per common share, a non-GAAP measure, both decreased 1.1% YoY to $20.58 and $20.56 , respectively. The Company paid a dividend of $0.22 per share in 1Q26 and declared an additional dividend of $0.22 per share paid on April 24, 2026 ; 807,964 shares remaining subject to repurchase under the authorized stock repurchase program, which has no expiration date or maximum dollar limit Ample capital enables the Company to continue investment in the business and strategic initiatives About Flushing Financial Corporation Flushing Financial Corporation (Nasdaq:FFIC) is the holding company for Flushing Bank®, an FDIC insured, New York State -chartered commercial bank that operates banking offices in Queens , Brooklyn , Manhattan , and on Long Island . The Bank has been building relationships with families, business owners, and communities since 1929. Today, it offers the products, services, and conveniences associated with large commercial banks, including a full complement of deposit, loan, equipment finance, and cash management services. Rewarding customers with personalized attention and bankers that can communicate in the languages prevalent within these multicultural markets is what makes the Bank uniquely different. As an Equal Housing Lender and leader in real estate lending, the Bank's experienced lending teams create mortgage solutions for real estate owners and property managers both within and outside the New York City metropolitan area. The Bank also fosters relationships with consumers nationwide through its online banking division with the iGObanking® and BankPurely® brands. Additional information on Flushing Bank and Flushing Financial Corporation may be obtained by visiting the Company's website at FlushingBank.com . Flushing Financial Corporation's earnings release is available at www.FlushingBank.com under Investor Relations. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding the proposed transaction of the Company with OceanFirst Financial Corp. ("OceanFirst"). 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, 2025 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. These forward-looking statements also include but are not limited to: (i) the risk that the proposed transaction with OceanFirst may not be completed in a timely manner or at all; (ii) the failure to satisfy the conditions to the consummation of the proposed transaction, including obtaining the necessary regulatory approvals (and the risk that such regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement between OceanFirst and the Company; (iv) the inability to obtain alternative capital in the event it becomes necessary to complete the proposed transaction; (v) the effect of the announcement or pendency of the proposed transaction on OceanFirst's and the Company's business relationships, operating results and business generally; (vi) risks that the proposed transaction disrupts current plans and operations of OceanFirst and the Company; (vii) potential difficulties in retaining OceanFirst and Company customers and employees as a result of the proposed transaction; (viii) OceanFirst's and the Company's estimates of its financial performance; (ix) changes in general economic, political, or industry conditions, including persistent inflation, supply chain issues or labor shortages, instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; (x) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve ; (xi) the credit risks of lending activities, which may be affected by deterioration in real estate markets and the financial condition of borrowers, and the operational risk of lending activities, including the effectiveness of OceanFirst's and the Company's underwriting practices and the risk of fraud; (xii) fluctuations in the demand for loans; (xiii) the ability to develop and maintain a strong core deposit base or other low cost funding sources necessary to fund OceanFirst's and the Company's activities particularly in a rising or high interest rate environment; (xiv) the rapid withdrawal of a significant amount of deposits over a short period of time; (xv) results of examinations by regulatory authorities of OceanFirst or the Company and the possibility that any such regulatory authority may, among other things, limit OceanFirst's or the Company's business activities, restrict OceanFirst's or the Company's ability to invest in certain assets, refrain from issuing an approval or non-objection to certain capital or other actions, increase OceanFirst's or the Company's allowance for credit losses, result in write-downs of asset values, restrict OceanFirst's or the Company's ability or that of OceanFirst's bank subsidiary or Flushing Bank to pay dividends, or impose fines, penalties or sanctions; (xvi) the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks; (xvii) changes in the markets in which OceanFirst and the Company compete, including with respect to the competitive landscape, technology evolution or regulatory changes; (xviii) changes in consumer spending, borrowing and saving habits; (xix) slowdowns in securities trading or shifting demand for security trading products; (xx) the impact of pandemics and other catastrophic events or disasters on the global economy and financial market conditions and our business, results of operations, and financial condition; (xxi) legislative or regulatory changes; (xxii) changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, (xxiii) impact of operating in a highly competitive industry; (xxiv) reliance on third party service providers; (xxv) competition in retaining key employees; (xxvi) risks related to data security and privacy, including the impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; (xxvii) changes to accounting principles and guidelines; (xxviii) potential litigation relating to the proposed transaction that could be instituted against OceanFirst, the Company or their respective directors and officers, including the effects of any outcomes related thereto; (xxix) volatility in the trading price of OceanFirst's or the Company's securities; (xxx) the ability to implement business plans, forecasts, and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; (xxxi) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected expenses, factors or events; (xxxii) the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where OceanFirst and the Company do business; and (xxxiii) the dilution caused by OceanFirst's issuance of additional shares of its capital stock in connection with the proposed transaction. The foregoing list of factors is not exhaustive. All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. #FF - Statistical Tables Follow - FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) At or for the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands, except per share data) 2026 2025 2025 2025 2025 Performance Ratios (1) Return on average assets 0.26 % 0.18 % 0.48 % 0.64 % (0.43 )% Return on average equity 3.26 2.24 5.86 8.00 (5.36 ) Yield on average interest-earning assets (2) 5.46 5.58 5.70 5.59 5.51 Cost of average interest-bearing liabilities 3.32 3.46 3.62 3.58 3.50 Cost of funds 2.91 3.04 3.21 3.19 3.13 Net interest rate spread during period (2) 2.14 2.12 2.08 2.01 2.01 Net interest margin (2) 2.67 2.68 2.64 2.54 2.51 Noninterest expense to average assets 2.12 2.18 1.99 1.81 2.65 Efficiency ratio (3) 73.55 71.52 71.03 67.69 72.21 Average interest-earning assets to average interest-bearing liabilities 1.19 X 1.19 X 1.18 X 1.17 X 1.17 X Average Balances Total loans, net $ 6,539,653 $ 6,591,699 $ 6,595,037 $ 6,678,494 $ 6,671,922 Total interest-earning assets 8,292,959 8,313,586 8,181,582 8,402,582 8,468,913 Total assets 8,826,485 8,846,472 8,702,227 8,918,075 9,015,880 Total deposits 7,492,325 7,496,670 7,345,547 7,607,080 7,560,956 Total interest-bearing liabilities 6,974,738 6,973,230 6,923,640 7,176,399 7,261,100 Stockholders' equity 715,145 718,727 712,600 709,839 731,592 Per Share Data Book value per common share (4) $ 20.58 $ 20.96 $ 21.06 $ 20.91 $ 20.81 Tangible book value per common share (5) $ 20.56 $ 20.94 $ 21.03 $ 20.89 $ 20.78 Stockholders' Equity Stockholders' equity $ 697,408 $ 707,975 $ 711,226 $ 706,377 $ 702,851 Tangible stockholders' equity 696,712 707,202 710,372 705,437 701,822 Consolidated Regulatory Capital Ratios Tier 1 capital $ 747,808 $ 752,523 $ 751,258 $ 740,871 $ 730,950 Common equity Tier 1 capital 694,708 702,747 703,450 695,099 683,670 Total risk-based capital 984,004 986,948 983,826 972,517 961,704 Risk Weighted Assets 6,634,737 6,623,923 6,692,035 6,675,621 6,719,291 Tier 1 leverage capital (well capitalized = 5%) 8.48 % 8.52 % 8.64 % 8.31 % 8.12 % Common equity Tier 1 risk-based capital (well capitalized = 6.5%) 10.47 10.61 10.51 10.41 10.17 Tier 1 risk-based capital (well capitalized = 8.0%) 11.27 11.36 11.23 11.10 10.88 Total risk-based capital (well capitalized = 10.0%) 14.83 14.90 14.70 14.57 14.31 Capital Ratios Average equity to average assets 8.10 % 8.12 % 8.19 % 7.96 % 8.11 % Equity to total assets 7.87 8.14 8.02 8.05 7.80 Tangible common equity to tangible assets (6) 7.86 8.14 8.01 8.04 7.79 Asset Quality Nonaccrual loans $ 50,555 $ 41,564 $ 44,851 $ 49,247 $ 46,263 Nonperforming loans 50,555 41,564 44,851 49,247 46,263 Nonperforming assets 68,169 58,825 62,129 66,125 64,263 Net charge-offs (recoveries) 520 1,783 1,090 2,549 4,427 Asset Quality Ratios Nonperforming loans to gross loans 0.77 % 0.63 % 0.67 % 0.74 % 0.69 % Nonperforming assets to total assets 0.77 0.68 0.70 0.75 0.71 Allowance for credit losses to gross loans 0.68 0.64 0.63 0.62 0.59 Allowance for credit losses to nonperforming assets 65.21 72.76 67.34 62.38 62.30 Allowance for credit losses to nonperforming loans 87.92 102.98 93.28 83.76 86.54 Net charge-offs (recoveries) to average loans 0.03 0.11 0.07 0.15 0.27 Full-service customer facilities 30 30 29 28 28 _________________________________________________________________________ (1) Ratios are presented on an annualized basis, where appropriate.(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented.(3) Efficiency ratio, a non-GAAP measure, was calculated by dividing core noninterest expense (excluding OREO expense and the net gain/loss from the sale of OREO) by the total of core net interest income and core noninterest income.(4) Calculated by dividing stockholders' equity by shares outstanding.(5) Calculated by dividing tangible stockholders' common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders' common equity is stockholders' equity less intangible assets. See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets".(6) See "Calculation of Tangible Stockholders' Common Equity to Tangible Assets". FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (In thousands, except per share data) 2026 2025 2025 2025 2025 Interest and Dividend Income Interest and fees on loans $ 91,643 $ 94,424 $ 94,970 $ 95,005 $ 93,032 Interest and dividends on securities: Interest 19,560 19,471 19,786 20,186 21,413 Dividends 25 27 28 28 28 Other interest income 1,782 1,900 1,685 2,183 2,063 Total interest and dividend income 113,010 115,822 116,469 117,402 116,536 Interest Expense Deposits 52,823 55,179 57,137 59,037 57,174 Other interest expense 4,993 5,137 5,504 5,156 6,373 Total interest expense 57,816 60,316 62,641 64,193 63,547 Net Interest Income 55,194 55,506 53,828 53,209 52,989 Provision for credit losses 2,011 2,745 1,531 4,194 4,318 Net Interest Income After Provision for Credit Losses 53,183 52,761 52,297 49,015 48,671 Noninterest Income (Loss) Banking services fee income 1,868 1,986 2,000 1,948 1,521 Net gain (loss) on sale of securities - 47 661 - - Net gain (loss) on sale of loans 94 14 318 2,757 630 Net gain (loss) from fair value adjustments (3,560 ) (1,985 ) (1,831 ) 1,656 (152 ) Federal Home Loan Bank of New York stock dividends 365 369 369 428 697 Life insurance proceeds 99 - - - - Bank owned life insurance 2,202 2,037 2,319 2,835 1,574 Other income 717 835 910 653 804 Total noninterest income (loss) 1,785 3,303 4,746 10,277 5,074 Noninterest Expense Salaries and employee benefits 26,610 26,219 24,685 22,648 22,896 Occupancy and equipment 4,557 4,240 4,189 4,005 4,092 Professional services 4,332 6,830 3,999 3,452 2,885 FDIC deposit insurance 1,001 1,038 1,373 1,508 1,709 Data processing 1,835 1,844 1,831 1,806 1,868 Depreciation and amortization 1,321 1,283 1,316 1,367 1,373 Other real estate owned/foreclosure expense 49 221 353 220 345 Impairment of goodwill - - - - 17,636 Other operating expenses 7,070 6,553 5,619 5,350 6,872 Total noninterest expense 46,775 48,228 43,365 40,356 59,676 Income (Loss) Before Provision (Benefit) for Income Taxes 8,193 7,836 13,678 18,936 (5,931 ) Provision (Benefit) for income taxes 2,360 3,810 3,231 4,733 3,865 Net Income (Loss) $ 5,833 $ 4,026 $ 10,447 $ 14,203 $ (9,796 ) Dividends paid and earnings allocated to participating securities (178 ) (120 ) (120 ) (127 ) (132 ) Income (Loss) attributable to common stock $ 5,655 $ 3,906 $ 10,327 $ 14,076 $ (9,928 ) Divided by: Weighted average common shares outstanding and participating securities 34,711 34,488 34,497 34,511 34,474 Weighted average participating securities (735 ) (547 ) (558 ) (582 ) (542 ) Total weighted average common shares outstanding 33,976 33,941 33,939 33,929 33,932 Basic earnings (loss) per common share $ 0.17 $ 0.12 $ 0.30 $ 0.41 $ (0.29 ) Diluted earnings (loss) per common share (1) $ 0.17 $ 0.12 $ 0.30 $ 0.41 $ (0.29 ) Dividends paid per common share $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.22 (1) There were no common stock equivalents outstanding during the periods presented. FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 ASSETS Cash and due from banks $ 158,707 $ 126,076 $ 142,929 $ 150,123 $ 271,912 Securities held-to-maturity: Mortgage-backed securities 7,812 7,816 7,821 7,826 7,831 Other securities, net 42,041 42,364 42,688 43,005 43,319 Securities available for sale: Mortgage-backed securities 1,087,248 821,938 906,270 828,756 879,566 Other securities 541,339 567,986 635,153 563,031 570,578 Loans held for sale - - - - 29,624 Loans 6,561,530 6,653,952 6,670,333 6,709,601 6,741,835 Allowance for credit losses (44,450 ) (42,802 ) (41,837 ) (41,247 ) (40,037 ) Net loans 6,517,080 6,611,150 6,628,496 6,668,354 6,701,798 Interest and dividends receivable 60,418 59,436 60,044 59,607 61,510 Bank premises and equipment, net 17,193 17,734 17,073 18,145 18,181 Federal Home Loan Bank of New York stock 18,520 18,937 18,909 23,773 18,475 Bank owned life insurance 228,881 226,939 224,902 222,583 219,748 Goodwill - - - - - Core deposit intangibles 696 773 854 940 1,029 Right of use asset 51,016 53,118 47,761 49,759 43,870 Other assets 131,898 139,035 139,091 140,622 140,955 Total assets $ 8,862,849 $ 8,693,302 $ 8,871,991 $ 8,776,524 $ 9,008,396 LIABILITIES Total deposits $ 7,580,388 $ 7,311,742 $ 7,415,528 $ 7,289,352 $ 7,718,218 Borrowed funds 416,499 484,653 492,457 600,171 421,542 Operating lease liability 51,916 53,842 48,253 50,102 44,385 Other liabilities 116,638 135,090 204,527 130,522 121,400 Total liabilities 8,165,441 7,985,327 8,160,765 8,070,147 8,305,545 STOCKHOLDERS' EQUITY Preferred stock (5,000,000 shares authorized; none issued) - - - - - Common stock ( $0.01 par value; 100,000,000 shares authorized) 387 387 387 387 387 Additional paid-in capital 325,789 326,613 325,809 325,162 324,290 Retained earnings 470,540 480,376 483,936 481,077 474,472 Treasury stock (96,649 ) (98,948 ) (98,948 ) (98,985 ) (98,993 ) Accumulated other comprehensive loss, net of taxes (2,659 ) (453 ) 42 (1,264 ) 2,695 Total stockholders' equity 697,408 707,975 711,226 706,377 702,851 Total liabilities and stockholders' equity $ 8,862,849 $ 8,693,302 $ 8,871,991 $ 8,776,524 $ 9,008,396 (In thousands) Issued shares 38,678 38,678 38,678 38,678 38,678 Outstanding shares 33,884 33,778 33,778 33,777 33,777 Treasury shares 4,794 4,900 4,900 4,901 4,901 FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES AVERAGE BALANCE SHEETS (Unaudited) For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (In thousands) 2026 2025 2025 2025 2025 Interest-earning Assets: Loans held for sale $ - $ - $ - $ 24,708 $ 64,085 Mortgage loans, net 5,119,895 5,197,256 5,193,430 5,260,610 5,261,261 Commercial Business loans, net 1,419,758 1,394,443 1,401,607 1,417,884 1,410,661 Total loans, net 6,539,653 6,591,699 6,595,037 6,678,494 6,671,922 Mortgage-backed securities 943,977 882,501 832,514 863,573 895,097 Other taxable securities, net 549,052 585,285 536,314 573,730 585,219 Other tax-exempt securities 42,518 42,843 43,168 43,489 43,813 Total securities, net 1,535,547 1,510,629 1,411,996 1,480,792 1,524,129 Interest-earning deposits and federal funds sold 217,759 211,258 174,549 218,588 208,777 Total interest-earning assets 8,292,959 8,313,586 8,181,582 8,402,582 8,468,913 Other assets 533,526 532,886 520,645 515,493 546,967 Total assets $ 8,826,485 $ 8,846,472 $ 8,702,227 $ 8,918,075 $ 9,015,880 Interest-bearing Liabilities: Deposits: Savings accounts $ 96,917 $ 92,836 $ 92,068 $ 94,884 $ 98,224 NOW accounts 2,265,480 2,223,337 2,154,978 2,388,559 2,215,683 Money market accounts 1,813,291 1,781,888 1,677,996 1,665,625 1,716,358 Certificate of deposit accounts 2,265,312 2,331,079 2,445,173 2,477,716 2,596,714 Total due to depositors 6,441,000 6,429,140 6,370,215 6,626,784 6,626,979 Mortgagors' escrow accounts 85,508 96,853 81,501 104,761 78,655 Total interest-bearing deposits 6,526,508 6,525,993 6,451,716 6,731,545 6,705,634 Borrowings 448,230 447,237 471,924 444,854 555,466 Total interest-bearing liabilities 6,974,738 6,973,230 6,923,640 7,176,399 7,261,100 Noninterest-bearing demand deposits 965,817 970,677 893,831 875,535 855,322 Other liabilities 170,785 183,838 172,156 156,302 167,866 Total liabilities 8,111,340 8,127,745 7,989,627 8,208,236 8,284,288 Equity 715,145 718,727 712,600 709,839 731,592 Total liabilities and equity $ 8,826,485 $ 8,846,472 $ 8,702,227 $ 8,918,075 $ 9,015,880 Net interest-earning assets $ 1,318,221 $ 1,340,356 $ 1,257,942 $ 1,226,183 $ 1,207,813 FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES NET INTEREST INCOME AND NET INTEREST MARGIN (Unaudited) For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 Interest Income: Loans held for sale $ - $ - $ - $ 247 $ 664 Mortgage loans, net 71,972 74,181 74,149 74,240 72,391 Commercial Business loans, net 19,671 20,243 20,821 20,518 19,977 Total loans, net 91,643 94,424 94,970 94,758 92,368 Mortgage-backed securities 11,855 11,857 11,513 11,709 12,528 Other taxable securities, net 7,380 7,280 7,939 8,143 8,553 Other tax-exempt securities 443 457 458 458 456 Total securities, net 19,678 19,594 19,910 20,310 21,537 Interest-earning deposits and federal funds sold 1,782 1,900 1,685 2,183 2,063 Total interest-earning assets 113,103 115,918 116,565 117,498 116,632 Interest Expense: Deposits: Savings accounts $ 88 $ 93 $ 94 $ 98 $ 110 NOW accounts 17,379 18,401 18,808 21,111 18,915 Money market accounts 15,074 15,719 15,390 15,323 15,372 Certificate of deposit accounts 20,169 20,904 22,766 22,443 22,710 Total due to depositors 52,710 55,117 57,058 58,975 57,107 Mortgagors' escrow accounts 113 62 79 62 67 Total interest-bearing deposits 52,823 55,179 57,137 59,037 57,174 Borrowings 4,993 5,137 5,504 5,156 6,373 Total interest-bearing liabilities 57,816 60,316 62,641 64,193 63,547 Net interest income- tax equivalent $ 55,287 $ 55,602 $ 53,924 $ 53,305 $ 53,085 Included in net interest income above: Episodic items (1) $ 674 $ 1,442 $ 1,498 $ 878 $ 294 Net gains/(losses) from fair value adjustments on hedges included in net interest income 34 42 94 64 56 Purchase accounting adjustments 160 161 191 257 252 Interest-earning Assets Yields: Loans held for sale - % - % - % 4.00 % 4.14 % Mortgage loans, net 5.62 5.71 5.71 5.64 5.50 Commercial Business loans, net 5.54 5.81 5.94 5.79 5.66 Total loans, net 5.61 5.73 5.76 5.68 5.54 Mortgage-backed securities 5.02 5.37 5.53 5.42 5.60 Other taxable securities, net 5.38 4.98 5.92 5.68 5.85 Other tax-exempt securities (2) 4.17 4.27 4.24 4.21 4.16 Total securities, net 5.13 5.19 5.64 5.49 5.65 Interest-earning deposits and federal funds sold 3.27 3.60 3.86 3.99 3.95 Total interest-earning assets (1) 5.46 % 5.58 % 5.70 % 5.59 % 5.51 % Interest-bearing Liabilities Yields: Deposits: Savings accounts 0.36 % 0.40 % 0.41 % 0.41 % 0.45 % NOW accounts 3.07 3.31 3.49 3.54 3.41 Money market accounts 3.33 3.53 3.67 3.68 3.58 Certificate of deposit accounts 3.56 3.59 3.72 3.62 3.50 Total due to depositors 3.27 3.43 3.58 3.56 3.45 Mortgagors' escrow accounts 0.53 0.26 0.39 0.24 0.34 Total interest-bearing deposits 3.24 3.38 3.54 3.51 3.41 Borrowings 4.46 4.59 4.67 4.64 4.59 Total interest-bearing liabilities 3.32 % 3.46 % 3.62 % 3.58 % 3.50 % Net interest rate spread (tax equivalent) (1) 2.14 % 2.12 % 2.08 % 2.01 % 2.01 % Net interest margin (tax equivalent) (1) 2.67 % 2.68 % 2.64 % 2.54 % 2.51 % Ratio of interest-earning assets to interest-bearing liabilities 1.19 X 1.19 X 1.18 X 1.17 X 1.17 X ___________________________________________________________________ (1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.(2) Yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented. FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES DEPOSIT and LOAN COMPOSITION (Unaudited) Deposit Composition 1Q26 vs. 1Q26 vs. March 31 , December 31 , September 30 , June 30 , March 31 , 4Q25 1Q25 (Dollars in thousands) 2026 2025 2025 2025 2025 % Change % Change Noninterest bearing $ 995,529 $ 969,287 $ 964,767 $ 899,602 $ 863,714 2.7 % 15.3 % Interest bearing: Certificate of deposit accounts 2,219,987 2,288,844 2,419,039 2,452,624 2,592,026 (3.0 ) (14.4 ) Savings accounts 98,325 93,752 91,089 92,699 97,624 4.9 0.7 Money market accounts 1,855,343 1,791,616 1,714,184 1,601,948 1,681,608 3.6 10.3 NOW accounts 2,314,962 2,108,653 2,143,752 2,174,124 2,393,482 9.8 (3.3 ) Total interest-bearing deposits 6,488,617 6,282,865 6,368,064 6,321,395 6,764,740 3.3 (4.1 ) Total due to depositors 7,484,146 7,252,152 7,332,831 7,220,997 7,628,454 3.2 (1.9 ) Mortgagors' escrow deposits 96,242 59,590 82,697 68,355 89,764 61.5 7.2 Total deposits $ 7,580,388 $ 7,311,742 $ 7,415,528 $ 7,289,352 $ 7,718,218 3.7 % (1.8 )% Loan Composition 1Q26 vs. 1Q26 vs. March 31 , December 31 , September 30 , June 30 , March 31 , 4Q25 1Q25 (Dollars in thousands) 2026 2025 2025 2025 2025 % Change % Change Multifamily residential $ 2,387,794 $ 2,382,828 $ 2,442,555 $ 2,487,610 $ 2,531,628 0.2 % (5.7 )% Commercial real estate 1,932,186 1,993,018 1,960,009 1,987,523 1,953,710 (3.1 ) (1.1 ) One-to-four family ??? mixed use property 466,734 476,423 482,933 493,846 501,562 (2.0 ) (6.9 ) One-to-four family ??? residential 297,735 319,353 335,592 258,608 269,492 (6.8 ) 10.5 Construction 40,614 54,821 51,638 46,798 63,474 (25.9 ) (36.0 ) Mortgage loans 5,125,063 5,226,443 5,272,727 5,274,385 5,319,866 (1.9 ) (3.7 ) Small Business Administration 21,972 17,523 11,439 15,473 14,713 25.4 49.3 Commercial business and other 1,401,627 1,395,853 1,372,598 1,407,792 1,396,597 0.4 0.4 Commercial Business loans 1,423,599 1,413,376 1,384,037 1,423,265 1,411,310 0.7 0.9 Gross loans 6,548,662 6,639,819 6,656,764 6,697,650 6,731,176 (1.4 ) (2.7 ) Net unamortized (premiums) and unearned loan (cost) fees (1) 12,868 14,133 13,569 11,951 10,659 (9.0 ) 20.7 Allowance for credit losses (44,450 ) (42,802 ) (41,837 ) (41,247 ) (40,037 ) 3.9 11.0 Net loans $ 6,517,080 $ 6,611,150 $ 6,628,496 $ 6,668,354 $ 6,701,798 (1.4 )% (2.8 )% ____________________________________________________________________ (1) Includes $1.8 million , $2.0 million , $2.1 million , $2.3 million , and $2.6 million of purchase accounting unamortized discount resulting from the acquisition of Empire Bancorp at March 31, 2026 , December 31, 2025 , September 30, 2025 , June 30, 2025 , and March 31, 2025 , respectively. FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES LOAN CLOSINGS and RATES (Unaudited) Loan Closings For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (In thousands) 2026 2025 2025 2025 2025 Multifamily residential $ 47,784 $ 16,559 $ 17,674 $ 8,546 $ 21,183 Commercial real estate 21,922 90,035 40,199 57,533 22,916 One-to-four family - mixed use property 4,302 7,553 3,580 3,039 1,842 One-to-four family - residential 289 1,174 86,589 411 35,206 Construction 4,043 3,184 4,839 2,469 3,275 Mortgage loans 78,340 118,505 152,881 71,998 84,422 Small Business Administration 5,510 6,391 528 2,457 1,250 Commercial business and other 77,657 136,486 99,351 84,721 88,404 Commercial Business loans 83,167 142,877 99,879 87,178 89,654 Total Closings $ 161,507 $ 261,382 $ 252,760 $ 159,176 $ 174,076 Weighted Average Rate on Loan Closings For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , Loan type 2026 2025 2025 2025 2025 Mortgage loans 6.18 % 6.18 % 6.44 % 6.87 % 6.68 % Commercial Business loans 6.49 6.67 7.14 7.25 7.28 Total loans 6.34 % 6.45 % 6.72 % 7.08 % 6.99 % FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES ASSET QUALITY (Unaudited) Allowance for Credit Losses For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 Allowance for credit losses - loans Beginning balances $ 42,802 $ 41,837 $ 41,247 $ 40,037 $ 40,152 Net loan charge-off (recoveries): Multifamily residential 319 834 372 1,677 4 Commercial real estate 616 - 1,275 72 - One-to-four family - mixed-use property - 35 20 - - Small Business Administration - - 271 (4 ) (40 ) Commercial business and other (415 ) 914 (848 ) 804 4,463 Total net loan charge-offs (recoveries) 520 1,783 1,090 2,549 4,427 Provision (benefit) for loan losses 2,168 2,748 1,680 3,759 4,312 Ending balance $ 44,450 $ 42,802 $ 41,837 $ 41,247 $ 40,037 Gross charge-offs $ 1,052 $ 2,051 $ 2,024 $ 2,857 $ 4,471 Gross recoveries 532 268 934 308 44 Allowance for credit losses - loans to gross loans 0.68 % 0.64 % 0.63 % 0.62 % 0.59 % Net loan charge-offs (recoveries) to average loans 0.03 0.11 0.07 0.15 0.27 Nonperforming Assets March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 Nonaccrual Loans: Multifamily residential 13,006 10,214 12,970 12,364 25,952 Commercial real estate 18,339 21,786 21,786 23,481 6,703 One-to-four family - mixed-use property - 236 - 422 426 One-to-four family - residential 1,707 1,838 1,351 2,277 1,225 Small Business Administration 1,064 554 554 2,445 2,445 Commercial business and other 16,439 6,936 8,190 8,258 9,512 Total Nonaccrual loans 50,555 41,564 44,851 49,247 46,263 Total Nonperforming Loans (NPLs) 50,555 41,564 44,851 49,247 46,263 Total Nonaccrual Securities 17,614 17,261 17,278 16,878 18,000 Total Nonperforming Assets $ 68,169 $ 58,825 $ 62,129 $ 66,125 $ 64,263 Nonperforming Assets to Total Assets 0.77 % 0.68 % 0.70 % 0.75 % 0.71 % Allowance for Credit Losses to NPLs 87.9 % 103.0 % 93.3 % 83.8 % 86.5 % FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES RECONCILIATION OF GAAP EARNINGS (LOSS) and CORE EARNINGS Non-cash Fair Value Adjustments to GAAP Earnings (Loss) The variance in GAAP earnings (loss) and core earnings is partly driven by the impact of non-cash net gains and losses from fair value adjustments. These fair value adjustments relate primarily to borrowings carried at fair value under the fair value option. Core Net Income, Core Diluted EPS, Core ROAE, Core ROAA, Pre-provision Pre-tax Net Revenue, Core Net Interest Income FTE, Core Net Interest Margin FTE, Core Interest Income and Yield on Total Loans, Core Noninterest Income, Core Noninterest Expense 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 noninterest 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 this measure is 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 (LOSS) and CORE EARNINGS (Unaudited) For the three months ended (Dollars in thousands, March 31 , December 31 , September 30 , June 30 , March 31 , except per share data) 2026 2025 2025 2025 2025 GAAP income (loss) before income taxes $ 8,193 $ 7,836 $ 13,678 $ 18,936 $ (5,931 ) Net (gain) loss from fair value adjustments (Noninterest income (loss)) 3,560 1,985 1,831 (1,656 ) 152 Net (gain) loss on sale of securities (Noninterest income (loss)) - (47 ) (661 ) - - Life insurance proceeds (Noninterest income (loss)) (99 ) - - - - Valuation allowance on loans transferred to held for sale (Noninterest income (loss)) - - - (2,590 ) 194 Net (gain) loss from fair value adjustments on hedges (Net interest income) (34 ) (42 ) (94 ) (64 ) (56 ) Net amortization of purchase accounting adjustments and intangibles (Various) (91 ) (88 ) (113 ) (176 ) (167 ) Impairment of goodwill (Noninterest expense) - - - - 17,636 Miscellaneous expense (Noninterest expense) 989 19 1,053 395 (1 ) Non-deductible miscellaneous expense (Noninterest expense) 1,405 4,836 - - - Core income before taxes 13,923 14,499 15,694 14,845 11,827 Provision for core income taxes 3,983 3,581 3,737 3,683 3,896 Core net income $ 9,940 $ 10,918 $ 11,957 $ 11,162 $ 7,931 GAAP diluted earnings (loss) per common share $ 0.17 $ 0.12 $ 0.30 $ 0.41 $ (0.29 ) Net (gain) loss from fair value adjustments, net of tax 0.07 0.03 0.04 (0.04 ) - Net (gain) loss on sale of securities, net of tax - 0.01 (0.01 ) - - Life insurance proceeds - - - - - Valuation allowance on loans transferred to held for sale, net of tax - - - (0.06 ) - Net (gain) loss from fair value adjustments on hedges, net of tax - - - - - Net amortization of purchase accounting adjustments, net of tax - - - - - Impairment of goodwill - - - - 0.51 Miscellaneous expense, net of tax 0.02 - 0.02 0.01 - Non-deductible miscellaneous expense 0.03 0.14 - - - Disallowed Compensation - 0.01 - - - Core diluted earnings per common share(1) $ 0.29 $ 0.32 $ 0.35 $ 0.32 $ 0.23 Core net income, as calculated above $ 9,940 $ 10,918 $ 11,957 $ 11,162 $ 7,931 Average assets 8,826,485 8,846,472 8,702,227 8,918,075 9,015,880 Average equity 715,145 718,727 712,600 709,839 731,592 Core return on average assets(2) 0.45 % 0.49 % 0.55 % 0.50 % 0.35 % Core return on average equity(2) 5.56 % 6.08 % 6.71 % 6.29 % 4.34 % ________________________________________________________ (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 (Unaudited) For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 GAAP Net interest income $ 55,194 $ 55,506 $ 53,828 $ 53,209 $ 52,989 Net (gain) loss from fair value adjustments on hedges (34 ) (42 ) (94 ) (64 ) (56 ) Net amortization of purchase accounting adjustments (160 ) (161 ) (191 ) (257 ) (252 ) Core Net interest income $ 55,000 $ 55,303 $ 53,543 $ 52,888 $ 52,681 GAAP Noninterest income (loss) $ 1,785 $ 3,303 $ 4,746 $ 10,277 $ 5,074 Net (gain) loss from fair value adjustments 3,560 1,985 1,831 (1,656 ) 152 Net loss on sale of securities - (47 ) (661 ) - - (Reversal) Valuation allowance on loans transferred to held for sale - - - (2,590 ) 194 Life insurance proceeds (99 ) - - - - Core Noninterest income $ 5,246 $ 5,241 $ 5,916 $ 6,031 $ 5,420 GAAP Noninterest expense $ 46,775 $ 48,228 $ 43,365 $ 40,356 $ 59,676 Prepayment penalty on borrowings - - - - - Net amortization of purchase accounting adjustments (69 ) (73 ) (78 ) (81 ) (85 ) Impairment of goodwill - - - - (17,636 ) Miscellaneous expense (2,394 ) (4,855 ) (1,053 ) (395 ) 1 Core Noninterest expense $ 44,312 $ 43,300 $ 42,234 $ 39,880 $ 41,956 Net interest income $ 55,194 $ 55,506 $ 53,828 $ 53,209 $ 52,989 Noninterest income (loss) 1,785 3,303 4,746 10,277 5,074 Noninterest expense (46,775 ) (48,228 ) (43,365 ) (40,356 ) (59,676 ) Pre-provision pre-tax net (loss) revenue $ 10,204 $ 10,581 $ 15,209 $ 23,130 $ (1,613 ) Core: Net interest income $ 55,000 $ 55,303 $ 53,543 $ 52,888 $ 52,681 Noninterest income 5,246 5,241 5,916 6,031 5,420 Noninterest expense (44,312 ) (43,300 ) (42,234 ) (39,880 ) (41,956 ) Pre-provision pre-tax net revenue $ 15,934 $ 17,244 $ 17,225 $ 19,039 $ 16,145 Efficiency Ratio 73.6 % 71.5 % 71.0 % 67.7 % 72.2 % FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES RECONCILIATION OF GAAP NET INTEREST INCOME and NET INTEREST MARGIN to CORE NET INTEREST INCOME (Unaudited) For the three months ended March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 GAAP net interest income $ 55,194 $ 55,506 $ 53,828 $ 53,209 $ 52,989 Net (gain) loss from fair value adjustments on hedges (34 ) (42 ) (94 ) (64 ) (56 ) Net amortization of purchase accounting adjustments (160 ) (161 ) (191 ) (257 ) (252 ) Tax equivalent adjustment 93 96 96 96 96 Core net interest income FTE $ 55,093 $ 55,399 $ 53,639 $ 52,984 $ 52,777 Episodic items (1) (674 ) (1,442 ) (1,498 ) (878 ) (294 ) Net interest income FTE excluding episodic items $ 54,419 $ 53,957 $ 52,141 $ 52,106 $ 52,483 Total average interest-earning assets (2) $ 8,294,840 $ 8,315,631 $ 8,183,818 $ 8,405,053 $ 8,471,609 Core net interest margin FTE 2.66 % 2.66 % 2.62 % 2.52 % 2.49 % Net interest margin FTE excluding episodic items 2.62 % 2.60 % 2.55 % 2.48 % 2.48 % GAAP interest income on total loans, net (3) $ 91,643 $ 94,424 $ 94,970 $ 94,758 $ 92,368 Net (gain) loss from fair value adjustments on hedges - loans (34 ) (42 ) (94 ) (64 ) (56 ) Net amortization of purchase accounting adjustments (171 ) (167 ) (195 ) (260 ) (252 ) Core interest income on total loans, net $ 91,438 $ 94,215 $ 94,681 $ 94,434 $ 92,060 Average total loans, net (2) $ 6,541,561 $ 6,593,780 $ 6,597,315 $ 6,681,009 $ 6,674,665 Core yield on total loans 5.59 % 5.72 % 5.74 % 5.65 % 5.52 % _________________________________________________________ (1) Episodic items include prepayment penalty income, net reversals and recovered interest from nonaccrual and delinquent loans, and swap terminations fees.(2) Excludes purchase accounting average balances for all periods presented.(3) Excludes interest income from loans held for sale. FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES CALCULATION OF TANGIBLE STOCKHOLDERS' COMMON EQUITY to TANGIBLE ASSETS (Unaudited) March 31 , December 31 , September 30 , June 30 , March 31 , (Dollars in thousands) 2026 2025 2025 2025 2025 Total Equity $ 697,408 $ 707,975 $ 711,226 $ 706,377 $ 702,851 Less: Goodwill - - - - - Core deposit intangibles (696 ) (773 ) (854 ) (940 ) (1,029 ) Tangible Stockholders' Common Equity $ 696,712 $ 707,202 $ 710,372 $ 705,437 $ 701,822 Total Assets $ 8,862,849 $ 8,693,302 $ 8,871,991 $ 8,776,524 $ 9,008,396 Less: Goodwill - - - - - Core deposit intangibles (696 ) (773 ) (854 ) (940 ) (1,029 ) Tangible Assets $ 8,862,153 $ 8,692,529 $ 8,871,137 $ 8,775,584 $ 9,007,367 Tangible Stockholders' Common Equity to Tangible Assets 7.86 % 8.14 % 8.01 % 8.04 % 7.79 % SOURCE: Flushing Financial Corporation View the original press release on ACCESS Newswire

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