Flushing Financial Corporation Reports Record Net Income For 2010; GAAP Net Income Increases 52% And Core Net Income Increases 31%

Full Year 2010

• GAAP net income for 2010 was $38.8 million, an increase of $13.3 million from 2009.
• Core net income for 2010 was $34.5 million, an increase of $8.1 million from 2009.
• GAAP diluted earnings per common share increased $0.37, or 40.7%, to $1.28 for 2010.
• Core diluted earnings per common share increased $0.14, or 14.0%, to $1.14 for 2010.
• Achieved record net interest income of $137.9 million for the year ended December 31, 2010 as the net interest margin increased 47 basis points to 3.43% for the year.
• Achieved record core pre provision pre tax ("PPPT") earnings of $77.7 million for the year ended December 31, 2010, a $15.3 million, or a 24.6% increase from the prior year. (See "Reconciliation of GAAP and Core Earnings before Provision for Loan Losses and Income Taxes").
• Net charge-offs for the year ended December 31, 2010 were 0.42% of average loans.
• Recorded a $21.0 million provision for loan losses for the year ended December 31, 2010.
• Recorded other-than-temporary impairment ("OTTI") charges totaling $1.1 million on four private issue collateralized mortgage obligations ("CMOs") and $1.0 million on one pooled trust preferred security during the year ended December 31, 2010.
• Due to depositors increased $497.0 million, or 18.6%, while borrowed funds decreased $351.6 million, or 33.2%.
• Regulatory capital ratios at December 31, 2010 continue to be above regulatory requirements at 9.18% for core capital and 14.34% for risk-based capital.
• Book value per common share increased to $12.48 at December 31, 2010 from $11.57 at December 31, 2009.
• Tangible common equity to tangible assets increased to 8.67% at December 31, 2010 from 8.32% at December 31, 2009.

Fourth Quarter 2010

• GAAP diluted earnings per common share was $0.28, a $0.13 increase from the comparable prior year period, and a $0.20 decrease from the three months ended September 30, 2010.
• Core diluted earnings per common share was $0.29, a $0.04 increase from the comparable prior year period, and a $0.02 decrease from the three months ended September 30, 2010.
• The net interest margin increased 27 basis points from the comparable prior year quarter to 3.41% from 3.14%, primarily due to a reduction in the cost of funds.
• The net interest margin decreased 15 basis points on a linked quarter basis to 3.41% from 3.56%, primarily due to an increase in the average balance of short term investments.
• Recorded a $6.0 million provision for loan losses in the fourth quarter of 2010.
• Net charge-offs for the quarter ended December 31, 2010 were 0.70% of average loans.
• Recorded OTTI charges totaling $0.5 million on three private issue CMOs in the fourth quarter of 2010.

LAKE SUCCESS, N.Y., Jan. 25, 2011 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the "Company") (Nasdaq:FFIC), the parent holding company for Flushing Savings Bank, FSB (the "Bank"), today announced its financial results for the year and three months ended December 31, 2010.