CONTACT:

David W. Fry

Executive Vice President, Treasurer

and Chief Financial Officer

Flushing Financial Corporation

(718) 961-5400

FOR IMMEDIATE RELEASE

FLUSHING FINANCIAL CORPORATION REPORTS QUARTERLY NET INCOME OF $6.3 MILLION AND DILUTED EARNINGS PER COMMON SHARE OF $0.26

2009 FIRST QUARTER HIGHLIGHTS AND OTHER SIGNIFICANT EVENTS
	•	NET INTEREST INCOME FOR THE 1ST QUARTER GREW TO $26.0 MILLION; A RECORD LEVEL.
	•	LOANS, NET GREW $68.1 MILLION, OR 2.3%, FOR THE QUARTER TO OVER $3.0 BILLION.
	•	DEPOSITS GREW $144.0 MILLION, OR 5.9%, FOR THE QUARTER TO OVER $2.5 BILLION.
	•	CORE OPERATING EARNINGS FOR THE QUARTER WERE $5.0 MILLION; CORE EPS OF $0.20.
	•	NET CHARGE-OFFS FOR THE 1ST QUARTER WERE 0.01% OF AVERAGE LOANS.
	•	TOTAL NON-PERFORMING ASSETS AT MARCH 31, 2009 WERE 1.48% OF TOTAL ASSETS.
	•	$4.5 MILLION PROVISION RECORDED FOR LOAN LOSSES IN QUARTER.
	•	$1.3 MILLION AFTER-TAX NET GAIN RECORDED IN QUARTER ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES CARRIED AT FAIR VALUE UNDER SFAS NO.159.
	•	REGULATORY CAPITAL RATIOS AT MARCH 31, 2009 WERE 7.87% FOR CORE CAPITAL AND 13.08% FOR RISK-WEIGHTED CAPITAL.
	•	BOOK VALUE PER COMMON SHARE INCREASED TO $11.05.

LAKE SUCCESS, NY – April 21, 2009 - Flushing Financial Corporation (the “Company”) (Nasdaq-GS: FFIC), the parent holding company for Flushing Savings Bank, FSB (the “Bank”), today announced its financial results for the three months ended March 31, 2009.

John R. Buran, President and Chief Executive Officer, stated: “The first quarter of 2009 reflected the same challenges we faced in 2008 as the economy remained in a recession. During the first quarter of 2009, credit markets continued to soften, and we saw a $19.5 million increase in our non-performing loans. We recorded a $4.5 million provision for loan losses for the first quarter of 2009, which reduced diluted earnings per common share, on an after-tax basis, by $0.12. Compared to the first quarter of 2008, net interest income growth of 26%, combined with operating expenses that matched budget, helped blunt the impact of the incremental provision for loan losses. Charge-offs for the recent quarter were once again low at 0.01% of average loans as we continued to manage delinquent loans, the majority of which are on multi-family properties with good current valuations.

“The growth in net interest income was driven by continued growth in our loan portfolio and deposit base, as both loans and deposits grew to record levels at March 31, 2009. We were also able to reduce our funding costs, which declined 42 basis points to 3.43% for the first quarter of 2009 from 3.85% for the fourth quarter of 2008. Our ability to both grow deposits and reduce related funding costs, while helped by a favorable yield curve, is directly related to our continuing plan to make our Bank more “commercial-like.” Our expanded capabilities and product offerings established in the last three years helped to grow transaction accounts by 26% this quarter, thereby helping to reduce our funding costs.

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Flushing Financial Corporation
April 21, 2009
Page Two

“Loan origination activity started slowly in the first quarter as economic uncertainties kept many borrowers out of the market. However, by the end of the quarter, the trend was reversing as we closed nearly half of our loan originations for the quarter in March.

“While we remain cautious about the economy, we recognize that we have the capital, liquidity, and the credit discipline to pick up market share in this huge New York Metropolitan market, as certain competitors temporarily focus on other matters.

“As we continue to grow the balance sheet, we are mindful of asset quality and our capital requirements. The Bank continues to be well-capitalized under regulatory requirements, with core and risk-weighted capital ratios of 7.87% and 13.08%, respectively, at March 31, 2009.”

Net income for the first quarter ended March 31, 2009 was $6.3 million, a decrease of $0.8 million, from the $7.2 million earned in the first quarter of 2008. Diluted earnings per common share for the first quarter were $0.26, a decrease of $0.09, from the $0.35 earned in the comparable quarter a year ago.

Core operating earnings, which exclude the effects of SFAS No. 159 and certain non-operating items, decreased to $5.0 million, or $0.20 per diluted share, in the first quarter of 2009 from $6.7 million, or $0.33 per diluted share, in the first quarter of 2008. The decrease in core operating earnings for the first quarter of 2009 compared to the first quarter of 2008 is primarily attributed to the increased provision for loan losses and the increase in deposit insurance.

For a reconciliation of core operating earnings and core operating earnings per share to accounting principles generally accepted in the United States (“GAAP”) net income and GAAP earnings per share, please refer to the tables in the section titled “Reconciliation of GAAP and Core Operating Earnings”.

Earnings Summary - Three Months Ended March 31, 2009

For the three months ended March 31, 2009, net interest income was $26.1 million, an increase of $5.3 million, or 25.8%, from $20.7 million for the three months ended March 31, 2008. The increase in net interest income is attributed to an increase in the average balance of interest-earning assets of $628.0 million to $3,837.3 million, combined with an increase in the net interest spread of 12 basis points to 2.53% for the quarter ended March 31, 2009 from 2.41% for the comparable period in 2008. The yield on interest-earning assets decreased 70 basis points to 5.96% for the three months ended March 31, 2009 from 6.66% for the three months ended March 31, 2008. The cost of interest-bearing liabilities decreased 82 basis points to 3.43% for the three months ended March 31, 2009 from 4.25% for the comparable prior year period. The net interest margin increased 14 basis points to 2.72% for the three months ended March 31, 2009 from 2.58% for the three months ended March 31, 2008. Excluding prepayment penalty income, the net interest margin would have been 2.67% and 2.44% for the three month periods ended March 31, 2009 and 2008, respectively.

The decline in the yield of interest-earning assets was primarily due to a 57 basis point reduction in the yield of the loan portfolio combined with a $374.9 million increase in the combined average balances of the lower yielding securities portfolio and interest-earning deposits, with each having a lower yield than the average yield of total interest-earning assets. The 57 basis point reduction in the yield of the loan portfolio to 6.35% for the quarter ended March 31, 2009 from 6.92% for the quarter ended March 31, 2008 was primarily due to a decline in prepayment penalty income, adjustable rate loans adjusting down as rates have continued to decline, and an increase in non-accrual loans for which we do not accrue interest income. The yield was positively impacted by the average rate on mortgage loans originated during the past twelve months being higher than the average rate of both the existing loan portfolio and mortgage loans which were paid-in-full during the period. The yield on the mortgage loan portfolio declined 50 basis points to 6.41% for the quarter ended March 31, 2009 from 6.91% for the quarter ended March 31, 2008. The yield on the mortgage loan portfolio, excluding prepayment penalty income, declined 38 basis points to 6.35% for the quarter ended March 31, 2009 from 6.73% for the quarter ended March 31, 2008. The decline in the yield of interest-earning assets was partially offset by an increase of $253.2 million in the average balance of the loan portfolio to $2,986.0 million for the quarter ended March 31, 2009.

The decrease in the cost of interest-bearing liabilities is primarily attributed to the Federal Open Market Committee lowering the overnight interest rate throughout 2008, and maintaining the targeted Fed Funds rate in a range of 0.00% to 0.25% during the first quarter of 2009. This has allowed the Bank to reduce the rates it pays on its deposit products. The cost of certificates of deposit, money market accounts, savings accounts and NOW accounts decreased 98 basis points, 176 basis points, 80 basis points and 33 basis points respectively, for the quarter ended March 31, 2009 compared to the comparable period in 2008. This resulted in a decrease in the cost of due to depositors of 107 basis points to 2.97% for the quarter ended March 31, 2009 from 4.04% for the quarter ended March 31, 2008. The cost of borrowed funds also decreased 12 basis points to 4.62% for the quarter ended March 31, 2009 from 4.74% for the quarter ended March 31, 2008. The combined average balances of lower-costing savings, money market and NOW accounts increased a total of $262.8 million for the quarter ended March 31, 2009 compared to the comparable period in 2008, while the average balance of higher-costing certificates of deposits increased $327.1 million for the quarter ended March 31, 2009 compared to the comparable period in 2008.

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Flushing Financial Corporation
April 21, 2009
Page Three

A provision for loan losses of $4.5 million was recorded for the quarter ended March 31, 2009 compared to $0.3 million recorded in the quarter ended March 31, 2008. The provision for loan losses recorded in 2009 was primarily due to an increase in non-performing loans. This increase in non-performing loans primarily consists of mortgage loans that are located in the New York City metropolitan market. Historically, the Bank has not incurred losses on mortgage loans, primarily due to conservative underwriting standards that include, among other things, a loan to value ratio of 75% or less and a debt coverage ratio of at least 125%. However, given the increase in non-performing loans and current economic uncertainties, management, as a result of the regular quarterly analysis of the allowance for loans losses, deemed it necessary to record an additional provision for possible loan losses in the first quarter of 2009.

Non-interest income increased $0.7 million, or 17.8%, for the three months ended March 31, 2009 to $4.7 million, as compared to $4.0 million for the quarter ended March 31, 2008. There was a $2.3 million gain in the fair value of financial instruments accounted for under SFAS No. 159 for the three months ended March 31, 2009 compared to a $1.6 million loss recorded in the comparable prior year period. The increased income recorded from financial instruments accounted for under SFAS No. 159 was partially offset by decreases in loan fee income of $0.3 million due to a decrease in fees received when loans satisfy, and $0.5 million in dividend income on FHLB-NY stock. In addition the three months ended March 31, 2008 included receipt of a $2.4 million settlement on the WorldCom Fraud case. This amount was received as a result of a class action litigation settlement, and was included in Other Income.

Non-interest expense was $16.0 million for the three months ended March 31, 2009, an increase of $2.8 million, or 21.0%, from $13.2 million for the three months ended March 31, 2008. Employee salary and benefits increased $1.0 million, which is primarily attributed to the growth of the Bank, including one new branch and the expansion of the collections department, increased costs for postretirement benefits, and grants of restricted stock awards in the first quarter of 2009. Federal Deposit Insurance Corporation (“FDIC”) insurance increased $0.7 million compared to the comparable prior year period as the credits we received to offset FDIC insurance charges were fully utilized in the first quarter of 2008, and the FDIC raised the deposit insurance premiums during 2009. Other operating expense increased $0.6 million primarily due to the accelerated vesting of restricted stock unit awards granted to directors during January 2009 and not granted in the comparable prior year period. The 2005 Omnibus Plan was amended in January 2009 to change the annual grant date of awards to directors from June to January of each year. The efficiency ratio was 67.0% and 56.1% for the three months ended, March 31, 2009 and 2008, respectively.

Net income for the three months ended March 31, 2009 was $6.3 million, a decrease of $0.8 million or 11.8%, as compared to $7.2 million for the three months ended March 31, 2008. Diluted earnings per common share were $0.26 for the three months ended March 31, 2009, a decrease of $0.09, or 25.7%, from $0.35 for the three months ended March 31, 2008.

Return on average equity was 8.4% for the three months ended March 31, 2009 compared to 12.3% for the three months ended March 31, 2008. Return on average assets was 0.6% for the three months ended March 31, 2009 compared to 0.8% for the three months ended March 31, 2008.

Balance Sheet Summary

At March 31, 2009, total assets were $4,068.5 million, an increase of $119.0 million, or 3.0%, from $3,949.5 million at December 31, 2008. Total loans, net increased $68.1 million, or 2.3%, during the first quarter ended March 31, 2009 to $3,028.7 million from $2,960.7 million at December 31, 2008. Loan originations were $123.5 million for the three months ended March 31, 2009, a decrease of $98.6 million from $222.1 million for the three months ended March 31, 2008, as loan demand has declined due to the current economic environment. At March 31, 2009, loan applications in process totaled $180.3 million, compared to $268.8 million at March 31, 2008 and $185.4 million at December 31, 2008. The following table shows loan originations and purchases for the periods indicated.

	For the three months ended March 31,
(In thousands)	2009		2008
Multi-family residential	$	36,947	$	47,482
Commercial real estate		36,662		42,933
One-to-four family – mixed-use property		6,108		34,618
One-to-four family – residential		7,014		68,021
Construction		5,281		9,502
Commercial business and other		31,486		19,544
Total loan originations and purchases	$	123,498	$	222,100

Loan purchases included in the table above were $2.9 million for commercial real estate and $5.9 million for commercial business and other for the quarter ended March 31, 2009, and $50.0 million for one-to-four family – residential, $2.5 million for commercial real estate, and $0.4 million for commercial business and other for the quarter ended March 31, 2008.

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Flushing Financial Corporation
April 21, 2009
Page Four

As the Bank continues to increase its loan portfolio, management continues to adhere to the Bank’s conservative underwriting standards. Although non-accrual loans have increased, primarily due to the current economic environment, the Bank has been able to minimize charge-offs from impaired loans and maintain asset quality as it takes a proactive approach to managing delinquent loans, including conducting site examinations and encouraging borrowers to meet with a Bank representative. The Bank has been developing short-term payment plans that enable certain borrowers to bring their loans current. The Bank reviews its delinquencies on a loan by loan basis, diligently exploring ways to help borrowers meet their obligations and return them back to current status as soon as possible. The Bank has increased staffing that handles the delinquent loans by hiring people experienced in loan workouts. The Bank’s non-performing assets were $60.2 million at March 31, 2009 an increase of $19.5 million from $40.7 million at December 31, 2008, and an increase of $52.3 million from $7.9 million at March 31, 2008. Total non-performing assets as a percentage of total assets were 1.48% at March 31, 2009 compared to 1.03% at December 31, 2008 and 0.23% as of March 31, 2008. The ratio of allowance for loan losses to total non-performing loans was 26% at March 31, 2009, compared to 28% at December 31, 2008 and 87% at March 31, 2008. The following table shows non-performing assets at the periods indicated:

(In thousands)	March 31, 2009		December 31, 2008
Loans 90 days or more past due and still accruing:
Commercial real estate	$	—	$	425
One-to-four family - residential		1,518		889
Total		1,518		1,314
Non-accrual loans:
Multi-family residential		19,113		12,010
Commercial real estate		11,533		7,409
One-to-four family - mixed-use property		16,738		10,639
One-to-four family - residential		1,354		1,122
Construction		3,757		4,457
Small business administration		246		354
Commercial business and other		5,173		2,667
Total		57,914		38,658
Total non-performing loans		59,432		39,972
Other non-performing assets:
Real estate acquired through foreclosure		125		125
Investment securities		607		607
Total		732		732
Total non-performing assets	$	60,164	$	40,704

During the quarter ended March 31, 2009, mortgage-backed securities increased $62.7 million, or 9.3%, to $737.5 million, while other securities decreased $8.1 million, or 11.1%, to $64.4 million. During the quarter ended March 31, 2009, there were purchases of $85.6 million of mortgage-backed securities, some of which were made to support the activities of Flushing Commercial Bank. Other securities primarily consist of securities issued by government agencies and mutual or bond funds that invest in government and government agency securities.

Total liabilities were $3,758.6 million at March 31, 2009, an increase of $110.6 million, or 3.0%, from December 31, 2008. During the quarter ended March 31, 2009, due to depositors increased $144.0 million to $2,581.6 million, primarily as a result of increases of $85.0 million in NOW accounts, $45.2 million in savings accounts, and $16.2 million in certificate of deposit accounts. Borrowed funds decreased $28.9 million to $1,110.0 million at March 31, 2009 from $1,138.9 million at December 31, 2008. In addition, mortgagors’ escrow deposits increased $4.0 million during the quarter ended March 31, 2009.

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Flushing Financial Corporation
April 21, 2009
Page Five

Total stockholders’ equity increased $8.4 million, or 2.8%, to $309.9 million at March 31, 2009 from $301.5 million at December 31, 2008. The increase is primarily due to net income of $6.3 million and an increase in other comprehensive income of $3.1 million for the three months ended March 31, 2009. This was partially offset by the declaration and payment of dividends on the Company’s common stock and preferred stock of $2.6 million and $0.5 million, respectively. The exercise of stock options increased stockholders’ equity by $0.7 million, including the income tax benefit realized by the Company upon the exercise of options. Book value per common share was $11.05 at March 31, 2009, compared to $10.70 per common share at December 31, 2008 and $11.03 per common share at March 31, 2008.

The Company did not repurchase any common shares during the quarter ended March 31, 2009 under its current stock repurchase program. At March 31, 2009, 362,050 common shares remain to be repurchased under the current stock repurchase program. As a condition of the Company’s participation in the U.S. Treasury’s Capital Purchase Program, common shares may not be purchased for the next three years without approval of the U.S. Treasury unless the preferred shares are redeemed or transferred to a third party. As of the date of the press release, the Company has not requested approval from the U.S. Treasury to repurchase common shares.

Reconciliation of GAAP and Core Operating Earnings

Although core operating earnings are not a measure of performance calculated in accordance with GAAP, the Company believes that its core operating earnings are an important indication of performance through ongoing operations. The Company believes that core operating earnings are useful to management and for investors to evaluate its ongoing operating performance, and in comparing its performance with other companies in the banking industry, particularly those that have not adopted the fair value option of SFAS No. 159. Core operating earnings should not be considered in isolation or as a substitute for GAAP earnings. During the periods presented, the Company calculated core operating earnings by subtracting or adding back the fair value gain or loss recorded under SFAS No.159 and the income or expense of certain non-recurring items listed below.

	Three Months Ended
	March 31, 2009			March 31, 2008			December 31, 2008
	(In thousands, except per share data)
GAAP net income	$	6,309		$	7,151		$	6,479
Net (gain) loss under SFAS No. 159, net of tax		(1,304	)		895			(782	)
Other-than-temporary impairment charge, net of tax		—			—			645
Partial recovery of WorldCom, Inc. loss, net of tax		—			(1,352	)		4
Core net income	$	5,005		$	6,694		$	6,346
GAAP diluted earnings per common share	$	0.26		$	0.35		$	0.31
Net (gain) loss under SFAS No. 159, net of tax		(0.06	)		0.04			(0.03	)
Other-than-temporary impairment charge, net of tax		—			—			0.03
Partial recovery of WorldCom, Inc. loss, net of tax		—			(0.06	)		—
Core diluted earnings per common share	$	0.20		$	0.33		$	0.31

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Flushing Financial Corporation
April 21, 2009
Page Six

About Flushing Financial Corporation

Flushing Financial Corporation is the parent holding company for Flushing Savings Bank, FSB, a federally chartered stock savings bank insured by the FDIC. The Bank serves consumers and businesses by offering a full complement of deposit, loan, and cash management services through its fifteen banking offices located in Queens, Brooklyn, Manhattan, and Nassau County. The Bank also operates an online banking division, iGObanking.com^®, which enables the Bank to expand outside of its current geographic footprint. In 2007, the Bank established Flushing Commercial Bank, a wholly-owned subsidiary, to provide banking services to public entities including counties, towns, villages, school districts, libraries, fire districts and the various courts throughout the metropolitan area.

Additional information on Flushing Financial Corporation may be obtained by visiting the Company’s website at http://www.flushingsavings.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, 2008 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”, “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.

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Flushing Financial Corporation April 21, 2009– Page Seven

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in Thousands Except Per Share Data)

	March 31, 2009			December 31, 2008
	(Unaudited)
ASSETS
Cash and due from banks	$	27,738		$	30,404
Securities available for sale:
Mortgage-backed securities		737,507			674,764
Other securities		64,421			72,497
Loans:
Multi-family residential		1,020,730			999,185
Commercial real estate		780,380			752,120
One-to-four family ― mixed-use property		749,124			751,952
One-to-four family ― residential		235,703			238,711
Co-operative apartments		6,505			6,566
Construction		106,829			103,626
Small business administration		19,633			19,671
Taxi medallion		35,125			12,979
Commercial business and other		72,878			69,759
Net unamortized premiums and unearned loan fees		17,085			17,121
Allowance for loan losses		(15,280	)		(11,028	)
Net loans		3,028,712			2,960,662
Interest and dividends receivable		18,922			18,473
Bank premises and equipment, net		23,359			22,806
Federal Home Loan Bank of New York stock		46,403			47,665
Bank owned life insurance		58,098			57,499
Goodwill		16,127			16,127
Core deposit intangible		2,225			2,342
Other assets		44,977			46,232
Total assets	$	4,068,489		$	3,949,471
LIABILITIES
Due to depositors:
Non-interest bearing	$	72,120		$	69,624
Interest-bearing:
Certificate of deposit accounts		1,452,625			1,436,450
Savings accounts		404,802			359,595
Money market accounts		301,323			306,178
NOW accounts		350,724			265,762
Total interest-bearing deposits		2,509,474			2,367,985
Mortgagors’ escrow deposits		35,270			31,225
Borrowed funds		1,110,043			1,138,949
Other liabilities		31,658			40,196
Total liabilities		3,758,565			3,647,979
STOCKHOLDERS’ EQUITY
Preferred stock ($0.01 par value; 5,000,000 shares authorized; 70,000 shares issued at March 31, 2009 and December 31, 2008; liquidation preference value of $70,000)		1			1
Common stock ($0.01 par value; 40,000,000 shares authorized; 21,715,809 shares and 21,625,709 shares issued and outstanding at March 31, 2009 and December 31, 2008, respectively)		217			216
Additional paid-in capital		152,757			150,662
Unearned compensation		(1,116	)		(1,300	)
Retained earnings		175,263			172,216
Accumulated other comprehensive loss, net of taxes		(17,198	)		(20,303	)
Total stockholders’ equity		309,924			301,492
Total liabilities and stockholders’ equity	$	4,068,489		$	3,949,471

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Flushing Financial Corporation April 21, 2009– Page Eight

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except Per Share Data)
(Unaudited)

	For the three months ended March 31,
	2009		2008
Interest and dividend income
Interest and fees on loans	$	47,376	$	47,311
Interest and dividends on securities:
Interest		9,337		4,955
Dividends		412		864
Other interest income		43		297
Total interest and dividend income		57,168		53,427
Interest expense
Deposits		18,827		19,632
Other interest expense		12,285		13,080
Total interest expense		31,112		32,712
Net interest income		26,056		20,715
Provision for loan losses		4,500		300
Net interest income after provision for loan losses		21,556		20,415
Non-interest income
Loan fee income		417		698
Banking services fee income		446		442
Net gain on sale of loans held for sale		—		31
Net gain on sale of loans		—		22
Net gain (loss) from fair value adjustments		2,349		(1,602	)
Federal Home Loan Bank of New York stock dividends		346		881
Bank owned life insurance		599		554
Other income		523		2,946
Total non-interest income		4,680		3,972
Non-interest expense
Salaries and employee benefits		7,471		6,454
Occupancy and equipment		1,774		1,636
Professional services		1,655		1,383
Data processing		1,089		1,045
Depreciation and amortization		622		594
FDIC deposit insurance		977		255
Other operating expenses		2,404		1,850
Total non-interest expense		15,992		13,217
Income before income taxes		10,244		11,170
Provision for income taxes
Federal		3,095		3,164
State and local		840		855
Total taxes		3,935		4,019
Net income	$	6,309	$	7,151
Basic earnings per common share	$	0.26	$	0.36
Diluted earnings per common share	$	0.26	$	0.35
Dividends per common share	$	0.13	$	0.13

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Flushing Financial Corporation April 21, 2009– Page Nine

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands Except Share Data)
(Unaudited)

	At or for the three months Ended March 31,
	2009			2008
Per Share Data
Basic earnings per common share	$	0.26		$	0.36
Diluted earnings per common share	$	0.26		$	0.35
Average number of common shares outstanding for:
Basic earnings per common share computation (1)		20,589,816			19,988,378
Diluted earnings per common share computation (1)		20,596,114			20,173,048
Book value per common share (2)	$	11.05		$	11.03
Average Balances
Total loans, net	$	2,985,958		$	2,732,792
Total interest-earning assets		3,837,289			3,209,252
Total assets		4,021,944			3,398,079
Total due to depositors		2,532,095			1,942,197
Total interest-bearing liabilities		3,628,656			3,076,863
Stockholders’ equity		299,544			233,081
Performance Ratios (3)
Return on average assets		0.63	%		0.84	%
Return on average equity		8.42			12.27
Yield on average interest-earning assets		5.96			6.66
Cost of average interest-bearing liabilities		3.43			4.25
Net interest rate spread during period		2.53			2.41
Net interest margin		2.72			2.58
Non-interest expense to average assets		1.59			1.56
Efficiency ratio		66.95			56.08
Average interest-earning assets to average interest-bearing liabilities		1.06	X		1.04	X

(1)	Reflects the adoption of FSP EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities,” which has been applied retrospectively.
(2)	Calculated by dividing common stockholders’ equity of $239.9 million and $235.4 million at March 31, 2009 and 2008, respectively, by 21,715,809 and 21,343,311 shares outstanding at March 31, 2009 and 2008, respectively. Common stockholders’ equity is total stockholders’ equity less the liquidation preference value of preferred shares outstanding.
(3)	Ratios for the quarters ended March 31, 2009 and 2008 are presented on an annualized basis.

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Flushing Financial Corporation April 21, 2009– Page Ten

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands)
(Unaudited)

	At or for the three months ended March 31, 2009			At or for the year ended December 31, 2008
Selected Financial Ratios and Other Data
Regulatory capital ratios (for Flushing Savings Bank only):
Tangible capital (minimum requirement = 1.5%)		7.87	%		7.92	%
Leverage and core capital (minimum requirement = 3%)		7.87			7.92
Total risk-based capital (minimum requirement = 8%)		13.08			13.02
Capital ratios:
Average equity to average assets		7.45	%		6.54	%
Equity to total assets		7.62			7.63
Asset quality:
Non-accrual loans	$	57,914		$	38,658
Non-performing loans		59,432			39,972
Non-performing assets		60,164			40,704
Net charge-offs		248			1,205
Asset quality ratios:
Non-performing loans to gross loans		1.96	%		1.35	%
Non-performing assets to total assets		1.48			1.03
Allowance for loan losses to gross loans		0.50			0.37
Allowance for loan losses to non-performing assets		25.40			27.09
Allowance for loan losses to non-performing loans		25.71			27.59
Full-service customer facilities		15			14

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Flushing Financial Corporation April 21, 2009– Page Eleven

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES
NET INTEREST MARGIN
(Dollars in Thousands)
(Unaudited)

	For the three months ended March 31,
	2009							2008
	Average Balance		Interest		Yield/ Cost			Average Balance		Interest		Yield/ Cost
Assets
Interest-earning assets:
Mortgage loans, net (1)	$	2,871,127	$	46,002		6.41	%	$	2,600,676	$	44,912		6.91	%
Other loans, net (1)		114,831		1,374		4.79			132,116		2,399		7.26
Total loans, net		2,985,958		47,376		6.35			2,732,792		47,311		6.92
Mortgage-backed securities		703,343		8,913		5.07			359,491		4,628		5.15
Other securities		73,298		836		4.56			77,195		1,191		6.17
Total securities		776,641		9,749		5.02			436,686		5,819		5.33
Interest-earning deposits and federal funds sold		74,690		43		0.23			39,774		297		2.99
Total interest-earning assets		3,837,289		57,168		5.96			3,209,252		53,427		6.66
Other assets		184,655							188,827
Total assets	$	4,021,944						$	3,398,079
Liabilities and Equity
Interest-bearing liabilities:
Deposits:
Savings accounts	$	392,995		1,578		1.61		$	360,555		2,174		2.41
NOW accounts		315,775		1,507		1.91			75,145		420		2.24
Money market accounts		306,708		1,524		1.99			317,000		2,968		3.75
Certificate of deposit accounts		1,516,617		14,200		3.75			1,189,497		14,054		4.73
Total due to depositors		2,532,095		18,809		2.97			1,942,197		19,616		4.04
Mortgagors’ escrow accounts		33,748		18		0.21			30,254		16		0.21
Total deposits		2,565,843		18,827		2.94			1,972,451		19,632		3.98
Borrowed funds		1,062,813		12,285		4.62			1,104,412		13,080		4.74
Total interest-bearing liabilities		3,628,656		31,112		3.43			3,076,863		32,712		4.25
Non interest-bearing deposits		67,059							68,730
Other liabilities		26,685							19,405
Total liabilities		3,722,400							3,164,998
Equity		299,544							233,081
Total liabilities and equity	$	4,021,944						$	3,398,079
Net interest income / net interest rate spread			$	26,056		2.53	%			$	20,715		2.41	%
Net interest-earning assets / net interest margin	$	208,633				2.72	%	$	132,389				2.58	%
Ratio of interest-earning assets to interest-bearing liabilities						1.06	X						1.04	X

(1) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $0.3 million and $1.2 million for the three-month periods ended March 31, 2009 and 2008, respectively.

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