Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Commission file number 001-33013 FLUSHING FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 11-3209278 (I.R.S. Employer Identification No.) 220 RXR Plaza, Uniondale, New York 11556 ...

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.41 and core earnings per share of $0.32, representing an increase of 12878% year over year [5] - GAAP net interest margin expanded by three basis points quarter over quarter to 2.54%, while core net interest margin also increased by three basis points to 2.52% [6] - Average total deposits increased by 6% year over year and 1% quarter over quarter to $7.6 billion [6] - Pre-provision pre-tax net revenue reached $23.1 million, the highest level since 2022 [6] - Tangible common equity grew by 25 basis points to 8.04% [8] Business Line Data and Key Metrics Changes - Core net interest income increased by $10.5 million year over year, driven by loan yields increasing by seven basis points [10] - Non-interest bearing deposits grew by 6% year over year and 2% quarter over quarter [12] - New checking account openings increased by 21% year over year and 8% quarter over quarter, indicating strong customer acquisition [12] Market Data and Key Metrics Changes - The bank's commercial real estate concentration decreased to under 500% for the first time since Q3 2023 [7] - Non-performing loans in the multifamily portfolio halved to 50 basis points, down from 101 basis points in the previous quarter [19] - Criticized and classified loans in the multifamily segment improved to 73 basis points from 116 basis points [19] Company Strategy and Development Direction - The company focuses on improving profitability, maintaining credit discipline, and preserving strong liquidity and capital [8] - The asset repricing strategy is expected to drive net interest margin expansion, with real estate loans projected to reprice approximately 160 basis points higher through 2027 [9] - The company is committed to serving the Asian American communities, with deposits in this market growing to $1.4 billion, reflecting a 12.4% compound annual growth rate since Q2 2022 [26] Management's Comments on Operating Environment and Future Outlook - Management expects total assets to remain stable, with loan growth being market-dependent [27] - The company anticipates some seasonal deposit outflows in Q3 but expects recovery in Q4 [27] - The effective tax rate is expected to be lowered to a range of 24.5% to 26.5% for the remainder of 2025 [28] Other Important Information - The company maintains a strong liquidity position with approximately $4 billion of undrawn lines and resources at quarter end [25] - The reliance on wholesale funding is limited, with uninsured and uncollateralized deposits representing only 17% of total deposits [25] Q&A Session Summary Question: What caused the $400 million decline in deposits? - Management indicated that the decline was mostly seasonal, related to government deposits moving out, and expected a recovery later in the year [34][35] Question: What would happen to margins if the Fed cuts rates? - A return to a more normal yield curve would be positive for the company, potentially leading to a couple of basis points improvement in margins [38][39] Question: Will there be buybacks in the second half of the year? - Management stated that they are focused on building capital stronger before considering buybacks, prioritizing profitable growth and dividends [44] Question: What drove the decrease in expense outlook? - The decrease was attributed to managing expenses tightly and some accruals related to incentive compensation [50] Question: What is the outlook for non-CD deposit repricing? - Management noted limited opportunities to reduce funding costs until the Fed makes a move, with most support for net interest margin expected from asset-side loan repricing [56]

Financial Performance - GAAP NIM increased 3 bps QoQ to 2.54%[6] - Core NIM expands 3 bps QoQ to 2.52%[6] - Average total deposits increased 5.7% YoY and 0.6% QoQ to $7.6 billion[6] - Core NII FTE increased by $10.5 million YoY[11] - PPNR of $23.1 million in 2Q25 at highest level since 3Q22[6] Asset Quality - Net charge-offs totaled 15 bps for 2Q25, less than 1 bp of net recoveries in 2Q24, and 27 bps in 1Q25[6] - NPAs to assets of 75 bps at 2Q25 compared to 61 bps at 2Q24 and 71 bps at 1Q25[6] - Criticized and Classified loan to total loans of 108 bps, down from 113 in 2Q24 and 133 in 1Q25[6] Capital and Liquidity - Tangible common equity ratio of 8.04%, up 25 bps QoQ[6] - Liquidity remains strong with $3.6 billion of undrawn lines and resources at quarter end[6] - Asian Communities – Total Loans $740.6 million and Deposits $1.36 billion[39] Loan Portfolio - Multifamily portfolio size is $2.5 billion with NPLs/Loans at 50 bps[29] - Investor CRE portfolio size is $2.0 billion with NPLs/Loans at 33 bps[33]

Core Insights - Flushing Financial reported a revenue of $63.49 million for the quarter ended June 2025, marking a 35.1% increase year-over-year and exceeding the Zacks Consensus Estimate by 8.15% [1] - The earnings per share (EPS) for the quarter was $0.32, up from $0.18 in the same quarter last year, representing a surprise of 10.34% over the consensus estimate of $0.29 [1] Financial Performance Metrics - Efficiency ratio stood at 67.7%, better than the average estimate of 72.2% from two analysts [4] - Net Interest Margin was reported at 2.5%, matching the average estimate [4] - Total interest-earning assets averaged $8.4 billion, slightly below the average estimate of $8.43 billion [4] - Net Interest Income was $53.21 million, surpassing the average estimate of $52.59 million [4] - Total Non-Interest Income reached $10.28 million, significantly higher than the average estimate of $6.11 million [4] - Banking services fee income was $1.95 million, exceeding the average estimate of $1.47 million [4] Stock Performance - Flushing Financial's shares returned +8.5% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

分组1 - Flushing Financial reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.18 per share a year ago, representing an earnings surprise of +10.34% [1] - The company posted revenues of $63.49 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 8.15%, compared to year-ago revenues of $46.99 million [2] - Flushing Financial has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed the market, losing about 12.5% since the beginning of the year, while the S&P 500 gained 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.30 on revenues of $59.05 million, and for the current fiscal year, it is $1.15 on revenues of $236.05 million [7] - The Zacks Industry Rank for Financial - Savings and Loan is currently in the bottom 26% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Exhibit 99.1 John R. Buran, President and CEO Commentary Flushing Financial Corporation Reports GAAP EPS Increase of 128% and Core EPS of 78% Year-Over-Year for the Second Quarter of 2025 "Our second quarter results reflect the continued successful execution of our strategic priorities, building upon the foundational actions we took in the preceding quarters. We are pleased to report another quarter of net interest margin expansion, with both GAAP and Core NIM increasing, which speaks to the effectiveness o ...

Core Viewpoint - Flushing Financial is expected to report a year-over-year increase in earnings and revenues, but actual results compared to estimates will significantly impact its stock price [1][2]. Earnings Expectations - The consensus estimate for Flushing Financial's quarterly earnings is $0.29 per share, reflecting a year-over-year increase of +61.1% [3]. - Revenues are anticipated to reach $58.7 million, which is a 24.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.23% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Flushing Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -6.90% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Flushing Financial had an earnings surprise of +4.55%, reporting $0.23 per share against an expectation of $0.22 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Flushing Financial does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, suggesting investors should consider other factors before making decisions [17].

Group 1 - The stock of Flushing Financial Corporation (FFIC) is experiencing significant attention due to high implied volatility in the options market, particularly for the Aug 15, 2025 $5 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Flushing Financial's stock price, potentially due to an upcoming event [2] - Flushing Financial currently holds a Zacks Rank 4 (Sell) in the Financial - Savings and Loan industry, which is in the bottom 40% of the Zacks Industry Rank, with no analysts increasing earnings estimates for the current quarter and one analyst revising estimates downward [3] Group 2 - The high implied volatility surrounding Flushing Financial may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $9.796 million compared to a net income of $3.684 million for the same period in 2024[10]. - The company’s comprehensive net income (loss) for the period was $(14.234) million, compared to $6.519 million in the prior year[13]. - The Company reported net income of $0.5 million for the three months ended March 31, 2025, compared to $1.0 million for the same period in 2024, reflecting a decrease of 50%[86]. - Income (loss) before income taxes was ($5.9) million for the three months ended March 31, 2025, a decrease of $10.9 million, or 218.7%, from $5.0 million for the same period in 2024[175]. - Diluted earnings per share for the three months ended March 31, 2025, were $(0.29), a decrease of $0.41, or 341.7%, from $0.12 for the same period in 2024[167]. Income and Expenses - Total interest and dividend income increased to $116.536 million, up from $109.499 million year-over-year, reflecting a growth of approximately 6.3%[10]. - Net interest income after provision for credit losses was $48.671 million, compared to $41.805 million in the prior year, representing an increase of about 16.5%[10]. - Non-interest expense rose to $59.676 million, up from $39.892 million, marking an increase of approximately 49.7% year-over-year[10]. - The total provision for income taxes was $3.865 million, compared to $1.313 million in the previous year, indicating an increase of approximately 194%[10]. - Non-interest income increased to $5.074 million from $3.084 million, reflecting a growth of approximately 64.6% year-over-year[10]. Asset and Liability Management - Cash and cash equivalents at the end of the period totaled $271.912 million, an increase from $210.723 million at the end of the same period last year[20]. - The company experienced a net increase in interest-bearing deposits of $475.194 million, compared to an increase of $437.530 million in the previous year[20]. - Total interest-earning assets increased to $8.47 billion for the three months ended March 31, 2025, compared to $8.24 billion for the same period in 2024[206]. - Total interest-bearing liabilities amounted to $7.26 billion as of March 31, 2025, with a total interest expense of $63.5 million[206]. - The ratio of interest-earning assets to interest-bearing liabilities remained stable at 1.17x for both periods[206]. Credit Quality and Loan Performance - The total loans outstanding as of March 31, 2025, amounted to $6.742 billion[58]. - The total amount of non-accrual loans at amortized cost was $58.352 million as of March 31, 2025[54]. - The company had a total of $40.163 million in modified loans for borrowers experiencing financial difficulty as of March 31, 2025[51]. - The total amount of loans across all categories was $6,742,067 thousand, highlighting the company's extensive loan portfolio[63]. - The allowance for credit losses to gross loans stood at 0.59% at March 31, 2025, with non-performing assets at 0.71% of total assets[163]. Securities and Investments - As of March 31, 2025, the total amortized cost of held-to-maturity securities is $51,509,000, with a fair value of $44,670,000, reflecting a gross unrealized loss of $6,839,000[30]. - The total amortized cost of available-for-sale securities is $1,454,886,000, with a fair value of $1,450,144,000, resulting in a gross unrealized loss of $4,742,000[34]. - The company did not sell any securities during the three months ended March 31, 2025, and 2024, maintaining a stable portfolio[43]. - The company believes that unrealized losses on available-for-sale securities are not credit-related and no allowance for credit loss was recorded[37]. - The allowance for credit losses for available-for-sale securities remains unchanged at $2,627,000 as of March 31, 2025[42]. Capital and Regulatory Compliance - The total risk-based capital level is $896,836 thousand, representing 13.35% of assets as of March 31, 2025, compared to 13.11% at December 31, 2024[141]. - The Company’s Tier I (leverage) capital is $856,082 thousand, which is 9.56% of assets as of March 31, 2025, an increase from 9.31% at December 31, 2024[141]. - The Company continues to exceed all regulatory capital requirements, maintaining a Common Equity Tier I risk-based capital of 12.74% as of March 31, 2025[143]. - The cumulative amount of basis adjustments for the portfolio layer method at March 31, 2025, is $0.2 million, down from $2.0 million at December 31, 2024[132]. - The Company maintained portfolio layer hedges on a closed portfolio of loans with a notional amount of $600.0 million as of March 31, 2025, up from $500.0 million at December 31, 2024[123].

Group 1 - Following the last report on Flushing Financial Corporation (FFIC) in February 2025, the stock price has decreased by 10.56% [1] - The market reaction is attributed to concerns over tariffs impacting the company [1]