10-Q

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, 2023

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

(Address of principal executive offices)

(718) 961-5400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    X   Yes        __No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    X   Yes        __No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer” ,“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  __	Accelerated filer  X
Non-accelerated filer  __	Smaller reporting company  __
Emerging growth company  __

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the exchange act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  __ Yes    X   No

The number of shares of the registrant’s Common Stock outstanding as of July 31, 2023 was 28,963,936.

TABLE OF CONTENTS

	PAGE
PART I  — FINANCIAL INFORMATION
ITEM 1. Financial Statements - (Unaudited)
Consolidated Statements of Financial Condition	1
Consolidated Statements of Income	2
Consolidated Statements of Comprehensive Income	3
Consolidated Statements of Cash Flows	4
Consolidated Statements of Changes in Stockholders’ Equity	6
Notes to Consolidated Financial Statements	7
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	65
ITEM 4. Controls and Procedures	65
PART II  — OTHER INFORMATION
ITEM 1. Legal Proceedings	66
ITEM 1A. Risk Factors	66
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	66
ITEM 3. Defaults Upon Senior Securities	66
ITEM 4. Mine Safety Disclosures	66
ITEM 5. Other Information	66
ITEM 6. Exhibits	67
SIGNATURES	69

i

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Financial Condition

(Unaudited)

Item 1.   Financial Statements

	June 30,		December 31,
	2023		2022
	(Dollars in thousands, except per share data)
Assets
Cash and due from banks	$	160,053	$	151,754
Securities held-to-maturity, net of allowance of $1,079 and $1,100, respectively, (assets pledged of $4,565 and $4,550, respectively; fair value of $64,337 and $62,550, respectively)		73,334		73,711
Securities available for sale, at fair value: (assets pledged of $154,586 and $172,235, respectively; $13,059 and $13,023 at fair value pursuant to the fair value option, respectively)		869,556		735,357
Loans, net of fees and costs		6,832,425		6,934,769
Less: Allowance for credit losses		(38,593)		(40,442)
Net loans		6,793,832		6,894,327
Interest and dividends receivable		52,911		45,048
Bank premises and equipment, net		22,182		21,750
Federal Home Loan Bank of New York stock, at cost		36,168		45,842
Bank owned life insurance		213,164		213,131
Goodwill		17,636		17,636
Core deposit intangibles		1,769		2,017
Right of use asset		41,526		43,289
Other assets		191,752		179,084
Total assets	$	8,473,883	$	8,422,946
Liabilities
Due to depositors:
Non-interest bearing	$	827,820	$	921,238
Interest-bearing		5,838,053		5,515,945
Total Due to depositors		6,665,873		6,437,183
Mortgagors' escrow deposits		57,817		48,159
Borrowed funds:
Federal Home Loan Bank advances and other borrowings		622,329		815,501
Subordinated debentures		187,294		186,965
Junior subordinated debentures, at fair value		47,777		50,507
Total borrowed funds		857,400		1,052,973
Operating lease liability		44,402		46,125
Other liabilities		177,088		161,349
Total liabilities		7,802,580		7,745,789
Stockholders' Equity
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)		—		—
Common stock ($0.01 par value; 100,000,000 shares authorized; 34,087,623 shares issued; 28,960,719 shares and 29,476,391 shares outstanding, respectively)		341		341
Additional paid-in capital		263,744		264,332
Treasury stock, at average cost (5,126,904 shares and 4,611,232 shares, respectively)		(104,574)		(98,535)
Retained earnings		547,811		547,507
Accumulated other comprehensive loss, net of taxes		(36,019)		(36,488)
Total stockholders' equity		671,303		677,157
Total liabilities and stockholders' equity	$	8,473,883	$	8,422,946

The accompanying notes are an integral part of these consolidated financial statements.

-1-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands, except per share data)
Interest and dividend income
Interest and fees on loans	$	85,377	$	69,192	$	168,266	$	136,708
Interest and dividends on securities:
Interest		9,172		4,929		16,412		8,674
Dividends		30		11		59		19
Other interest income		1,982		159		3,941		210
Total interest and dividend income		96,561		74,291		188,678		145,611
Interest expense
Deposits		46,249		4,686		85,305		8,094
Other interest expense		6,934		4,875		14,733		9,308
Total interest expense		53,183		9,561		100,038		17,402
Net interest income		43,378		64,730		88,640		128,209
Provision for credit losses		1,416		1,590		8,924		2,948
Net interest income after provision for credit losses		41,962		63,140		79,716		125,261
Non-interest income
Banking services fee income		1,780		1,166		3,191		2,540
Net gain on sale of loans		54		73		108		73
Net gain from fair value adjustments		294		2,533		2,913		724
Federal Home Loan Bank of New York stock dividends		534		407		1,231		804
Life insurance proceeds		561		1,536		561		1,536
Bank owned life insurance		1,134		1,115		2,243		2,229
Other income		765		523		1,783		760
Total non-interest income		5,122		7,353		12,030		8,666
Non-interest expense
Salaries and employee benefits		19,493		21,109		40,380		44,758
Occupancy and equipment		3,534		3,760		7,327		7,364
Professional services		2,657		2,285		5,140		4,507
FDIC deposit insurance		943		615		1,920		1,035
Data processing		1,473		1,383		2,908		2,807
Depreciation and amortization of bank premises and equipment		1,482		1,447		2,992		2,907
Other real estate owned / foreclosure expense		150		32		315		116
Other operating expenses		5,547		4,891		12,000		10,822
Total non-interest expense		35,279		35,522		72,982		74,316
Income before income taxes		11,805		34,971		18,764		59,611
Provision for income taxes
Federal		2,194		5,609		3,561		10,259
State and local		983		4,327		1,417		6,098
Total provision for income taxes		3,177		9,936		4,978		16,357
Net income	$	8,628	$	25,035	$	13,786	$	43,254
Basic earnings per common share	$	0.29	$	0.81	$	0.46	$	1.39
Diluted earnings per common share	$	0.29	$	0.81	$	0.46	$	1.39
Dividends per common share	$	0.22	$	0.22	$	0.44	$	0.44

The accompanying notes are an integral part of these consolidated financial statements.

-2-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Unaudited)

	For the three months ended				For the six months ended,
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands)
Net income	$	8,628	$	25,035	$	13,786	$	43,254
Other comprehensive income (loss), net of tax:
Amortization of actuarial gains, net of taxes of $31 and ($5), respectively, and of $62 and ($3), respectively.		(69)		(11)		(138)		(15)
Amortization of prior service credits, net of taxes of ($4) and ($2) for the three and six months ended June 30, 2022, respectively.		—		(11)		—		(16)
Change in net unrealized gains on securities, net of taxes of $1,977 and $8,767, respectively, and of $93 and $19,659, respectively.		(4,404)		(20,434)		(417)		(43,861)
Net unrealized gains on cashflow hedges, net of taxes of ($2,836) and ($2,018), respectively, and of ($492) and ($8,876), respectively.		6,319		4,915		1,179		19,666
Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of $36 and $142, respectively, and of $69 and $205, respectively.		(81)		(219)		(155)		(354)
Other comprehensive income (loss), net of tax:		1,765		(15,760)		469		(24,580)
Comprehensive net income	$	10,393	$	9,275	$	14,255	$	18,674

The accompanying notes are an integral part of these consolidated financial statements.

-3-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

	For the six months ended June 30,
	2023		2022
	(In thousands)
Operating Activities
Net income	$	13,786	$	43,254
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses		8,924		2,948
Depreciation and amortization of premises and equipment		2,992		2,907
Net gain on sales of loans		(108)		(73)
Net amortization of premiums and discounts		1,876		568
Deferred income tax provision		3,139		3,191
Net gain from fair value adjustments		(2,913)		(724)
Net loss from fair value adjustments of qualifying hedges		105		129
Gain from life insurance proceeds		(561)		(1,536)
Income from bank owned life insurance		(2,243)		(2,229)
Stock-based compensation expense		4,706		5,255
Deferred compensation		(2,309)		(3,627)
Amortization of core deposit intangibles		248		280
(Increase) decrease in other assets		(15,971)		9,303
Decrease in other liabilities		(10,730)		(15,004)
Net cash provided by operating activities		941		44,642
Investing Activities
Purchases of premises and equipment		(3,424)		(1,854)
Purchases of Federal Home Loan Bank - NY shares		(79,799)		(41,058)
Redemptions of Federal Home Loan Bank - NY shares		89,473		26,978
Purchases of securities held-to-maturity		—		(16,476)
Proceeds from prepayments of securities held-to-maturity		395		—
Purchases of securities available for sale		(151,860)		(210,261)
Proceeds from maturities and prepayments of securities available for sale		31,292		64,227
Proceeds from life insurance		—		2,727
Change in cash collateral		6,910		34,365
Net repayments (originations) of loans		171,297		(69,676)
Purchases of loans		(84,040)		(111,028)
Proceeds from sale of loans		7,042		18,565
Net cash used in investing activities		(12,714)		(303,491)

-4-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statements of Cash Flows (Contd.)

(Unaudited)

	For the six months ended June 30,
		2023		2022
	(In thousands)
Financing Activities
Net (decrease) increase in noninterest-bearing deposits	$	(93,418)	$	113,587
Net increase (decrease) in interest-bearing deposits		321,819		(47,067)
Net increase in mortgagors' escrow deposits		9,658		5,664
Net (repayments) proceeds from short-term borrowed funds		(316,200)		325,000
Proceeds from long-term borrowing		162,029		—
Repayment of long-term borrowings		(39,001)		(50,000)
Purchase of treasury shares and repurchase of shares to satisfy tax obligations		(11,558)		(19,396)
Cash dividends paid		(13,257)		(13,636)
Net cash provided by financing activities		20,072		314,152
Net increase in cash and cash equivalents, and restricted cash		8,299		55,303
Cash, cash equivalents, and restricted cash, beginning of period		151,754		81,723
Cash, cash equivalents, and restricted cash, end of period	$	160,053	$	137,026
Supplemental Cash Flow Disclosure
Interest paid	$	96,476	$	16,612
Income taxes paid		6,082		16,215
Taxes paid if excess tax benefits on stock-based compensation were not tax deductible		6,084		16,385
Securities purchased not yet settled		20,000		—

The accompanying notes are an integral part of these consolidated financial statements.

-5-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Consolidated Statement of Changes in Stockholders’ Equity

(Unaudited)

							Additional						Accumulated Other
		Shares			Common		Paid-in		Treasury		Retained		Comprehensive
(Dollars in thousands, except per share data)	Outstanding		Total		Stock		Capital		Stock		Earnings		Loss
Balance at December 31, 2022		29,476,391	$	677,157	$	341	$	264,332	$	(98,535)	$	547,507	$	(36,488)
Net income		—		5,158		—		—		—		5,158		—
Vesting of restricted stock unit awards		256,798		—		—		(5,264)		5,484		(220)		—
Purchase of treasury shares		(159,516)		(3,053)		—		—		(3,053)		—		—
Stock-based compensation expense		—		3,808		—		3,808		—		—		—
Repurchase of shares to satisfy tax obligation		(85,217)		(1,656)		—		—		(1,656)		—		—
Dividends on common stock ($0.22 per share)		—		(6,659)		—		—		—		(6,659)		—
Other comprehensive loss		—		(1,296)		—		—		—		—		(1,296)
Balance at March 31, 2023		29,488,456	$	673,459	$	341	$	262,876	$	(97,760)	$	545,786	$	(37,784)
Net income		—		8,628		—		—		—		8,628		—
Vesting of restricted stock unit awards		1,690		—		—		(30)		35		(5)		—
Purchase of treasury shares		(528,815)		(6,841)		—		—		(6,841)		—		—
Stock-based compensation expense		—		898		—		898		—		—		—
Repurchase of shares to satisfy tax obligation		(612)		(8)		—		—		(8)		—		—
Dividends on common stock ($0.22 per share)		—		(6,598)		—		—		—		(6,598)		—
Other comprehensive income		—		1,765		—		—		—		—		1,765
Balance at June 30, 2023		28,960,719	$	671,303	$	341	$	263,744	$	(104,574)	$	547,811	$	(36,019)

							Additional						Accumulated Other
		Shares			Common		Paid-in		Treasury		Retained		Comprehensive
(Dollars in thousands, except per share data)	Outstanding		Total		Stock		Capital		Stock		Earnings		Loss
Balance at December 31, 2021		30,526,353	$	679,628	$	341	$	263,375	$	(75,293)	$	497,889	$	(6,684)
Net income		—		18,219		—		—		—		18,219		—
Award of common shares released from Employee Benefit Trust		—		287		—		287		—		—		—
Vesting of restricted stock unit awards		297,626		—		—		(6,019)		6,304		(285)		—
Purchase of treasury shares		(360,000)		(8,469)		—		—		(8,469)		—		—
Stock-based compensation expense		—		4,194		—		4,194		—		—		—
Repurchase of shares to satisfy tax obligation		(97,435)		(2,376)		—		—		(2,376)		—		—
Dividends on common stock ($0.22 per share)		—		(6,850)		—		—		—		(6,850)		—
Other comprehensive loss		—		(8,820)		—		—		—		—		(8,820)
Balance at March 31, 2022		30,366,544	$	675,813	$	341	$	261,837	$	(79,834)	$	508,973	$	(15,504)
Net Income				25,035		—		—		—		25,035		—
Vesting of restricted stock unit awards		2,015		—		—		(38)		43		(5)		—
Purchase of treasury shares		(387,689)		(8,534)		—		—		(8,534)		—		—
Stock-based compensation expense		—		1,061		—		1,061		—		—		—
Repurchase of shares to satisfy tax obligation		(766)		(17)		—		—		(17)		—		—
Dividends on common stock ($0.22 per share)		—		(6,786)		—		—		—		(6,786)		—
Other comprehensive loss		—		(15,760)		—		—		—		—		(15,760)
Balance at June 30, 2022		29,980,104	$	670,812	$	341	$	262,860	$	(88,342)	$	527,217	$	(31,264)

The accompanying notes are an integral part of these consolidated financial statements.

-6-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

1.     Basis of Presentation

The primary business of Flushing Financial Corporation (the “Holding Company”), a Delaware corporation, is the operation of its wholly owned subsidiary, Flushing Bank (the “Bank”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q (“Quarterly Report”) include the collective results of the Holding Company and its direct and indirect wholly owned subsidiaries, including the Bank, Flushing Service Corporation and FSB Properties Inc., which are collectively herein referred to as “we,” “us,” “our” and the “Company.”

The Holding Company also owns Flushing Financial Capital Trust II, Flushing Financial Capital Trust III, and Flushing Financial Capital Trust IV (the “Trusts”), which are special purpose business trusts. The Trusts are not included in the Company’s consolidated financial statements, as the Company would not absorb the losses of the Trusts if any losses were to occur.

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for such presented periods of the Company. Such adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report. All inter-company balances and transactions have been eliminated in consolidation. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for the full year.

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Quarterly Report on Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

When necessary, certain reclassifications were made to prior-year amounts to conform to the current-year presentation. Such reclassifications had no effect on the prior period net income or shareholders’ equity and were insignificant amounts.

2.     Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for credit losses, the evaluation of goodwill for impairment, the review of the need for a valuation allowance of the Company’s deferred tax assets, and the fair value of financial instruments.

Goodwill represents the excess purchase price over the value assigned to tangible and identifiable intangible assets, and liabilities assumed of business acquired. Goodwill is presumed to have an indefinite life and is tested annually for impairment, or more frequently when certain conditions are met. If the fair value of the reporting unit is greater than the carrying value, no further evaluation is required. If the fair value of the reporting unit is less than the carrying value, further evaluation would be required to compare the fair value of the reporting unit to the carrying value and determine if impairment is required.

-7-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Quoted market prices in active markets are the best evidence of fair value and are to be used as the basis for measurement, when available. Other acceptable valuation methods include an asset approach, which determines a fair value based upon the value of assets net of liabilities, an income approach, which determines fair value using one or more methods that convert anticipated economic benefits into a present single amount, and a market approach, which determines a fair value based on the similar businesses that have been sold.

At June 30, 2023, the book value of our reporting unit exceeded market capitalization, however the fair value of our reporting unit is not driven solely by the market price of our stock. As described above, the fair value can also be derived using an asset approach, an income approach and a market approach, or a combination of these techniques. At June 30, 2023, the Company used an income approach and a market approach to determine the fair value of the reporting unit. These valuation techniques consider several other factors beyond our market capitalization, such as the estimated future cash flows of our reporting unit, the discount rate used to present value such cash flows and the market multiples of comparable companies. Changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment. We qualitatively assess whether the carrying value of our reporting unit exceeds fair value. If this qualitative assessment determines that it is more likely than not that the carrying value of our reporting unit exceeds fair value, further quantitative evaluation for impairment would be required to compare the fair value of the reporting unit to the carrying value and determine if impairment is required.

In performing the goodwill impairment testing, the Company has identified a single reporting unit. The Company performed a quantitative assessment in reviewing the carrying value of goodwill as of December 31, 2022, which was repeated in the second quarter of 2023, concluding that there was no goodwill impairment at June 30, 2023. At June 30, 2023 and December 31, 2022, the carrying amount of goodwill totaled $17.6 million at each period. The identification of additional reporting units, the use of other valuation techniques and/or changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

3.     Earnings Per Share

Earnings per common share have been computed based on the following:

	For the three months ended						For the six months ended
	June 30,						June 30,
	2023			2022			2023			2022
	(Dollars in thousands, except per share data)
Net income, as reported	$	8,628		$	25,035		$	13,786		$	43,254
Divided by:
Weighted average common shares outstanding (1)		30,090			30,937			30,177			31,095
Basic earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Diluted earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Dividend Payout ratio		75.9	%		27.2	%		95.7	%		31.7	%

(1) For the three and six months ended June 30, 2023, and 2022, there were no common stock equivalents that were anti-dilutive.

4.     Securities

The following table summarizes the Company’s portfolio of securities held-to-maturity on June 30, 2023:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,548	$	57,326	$	—	$	9,222
Total municipals		66,548		57,326		—		9,222
FNMA		7,865		7,011		—		854
Total mortgage-backed securities		7,865		7,011		—		854
Allowance for credit losses		(1,079)		—		—		—
Total	$	73,334	$	64,337	$	—	$	10,076

-9-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the Company’s portfolio of securities held-to-maturity on December 31, 2022:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,936	$	55,561	$	—	$	11,375
Total municipals		66,936		55,561		—		11,375
FNMA		7,875		6,989		—		886
Total mortgage-backed securities		7,875		6,989		—		886
Allowance for credit losses		(1,100)		—		—		—
Total	$	73,711	$	62,550	$	—	$	12,261

The following table summarizes the Company’s portfolio of securities available for sale on June 30, 2023:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,339	$	81,290	$	151	$	2,200
Corporate		173,095		150,602		—		22,493
Mutual funds		11,346		11,346		—		—
Collateralized loan obligations		262,471		258,973		58		3,556
Other		1,434		1,434		—		—
Total other securities		531,685		503,645		209		28,249
REMIC and CMO		168,675		140,161		—		28,514
GNMA		8,861		7,079		1		1,783
FNMA		165,064		141,717		—		23,347
FHLMC		92,810		76,954		—		15,856
Total mortgage-backed securities		435,410		365,911		1		69,500
Total Securities excluding portfolio layer adjustments		967,095		869,556		210		97,749
Unallocated portfolio layer basis adjustments (1)		(5,504)		n/a		—		(5,504)
Total securities available for sale	$	961,591	$	869,556	$	210	$	92,245

(1) Represents the amount of portfolio layer method basis adjustments related to available for sale (“AFS”) securities hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual securities, however, the amounts impact the unrealized gains or losses for the individual securities being hedged. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

-10-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the Company’s portfolio of securities available for sale on December 31, 2022:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,720	$	81,103	$	2	$	2,619
Corporate		146,430		131,766		—		14,664
Mutual funds		11,211		11,211		—		—
Collateralized loan obligations		129,684		125,478		—		4,206
Other		1,516		1,516		—		—
Total other securities		372,561		351,074		2		21,489
REMIC and CMO		175,712		148,414		—		27,298
GNMA		9,193		7,317		3		1,879
FNMA		172,690		148,265		—		24,425
FHLMC		96,725		80,287		—		16,438
Total mortgage-backed securities		454,320		384,283		3		70,040
Total securities available for sale	$	826,881	$	735,357	$	5	$	91,529

The corporate securities held by the Company at June 30, 2023 and December 31, 2022, are issued by U.S. banking institutions. The CMOs held by the Company at June 30, 2023 and December 31, 2022, are either fully guaranteed or issued by a government sponsored enterprise.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at June 30, 2023, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due after ten years	$	66,548	$	57,326
Total other securities		66,548		57,326
Mortgage-backed securities		7,865		7,011
		74,413		64,337
Allowance for credit losses		(1,079)		-
Total securities held-to-maturity	$	73,334	$	64,337

-11-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	Amortized
Securities available for sale (1):	Cost		Fair Value
	(In thousands)
Due in one year or less	$	59,888	$	58,498
Due after one year through five years		74,823		69,033
Due after five years through ten years		255,416		235,696
Due after ten years		130,212		129,072
Total other securities		520,339		492,299
Mutual funds		11,346		11,346
Mortgage-backed securities		435,410		365,911
Total securities available for sale	$	967,095	$	869,556

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $5.5 million related to AFS securities hedged in a closed portfolio at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

The following tables show the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At June 30, 2023
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	57,326	$	9,222	$	—	$	—	$	57,326	$	9,222
Total other securities	3		57,326		9,222		—		—		57,326		9,222
FNMA	1		7,011		854		—		—		7,011		854
Total mortgage-backed securities	1		7,011		854		—		—		7,011		854
Total	4	$	64,337	$	10,076	$	—	$	—	$	64,337	$	10,076
Available for sale securities (1)
U.S. Government Agencies & Treasury	8	$	73,794	$	2,200	$	5,437	$	24	$	68,357	$	2,176
Corporate	26		150,602		22,493		46,412		6,748		104,190		15,745
CLO	31		229,211		3,556		104,188		1,004		125,023		2,552
Total other securities	65		453,607		28,249		156,037		7,776		297,570		20,473
REMIC and CMO	47		139,882		28,514		940		52		138,942		28,462
GNMA	10		6,952		1,783		97		1		6,855		1,782
FNMA	48		141,717		23,347		7,493		399		134,224		22,948
FHLMC	18		76,954		15,856		10,457		751		66,497		15,105
Total mortgage-backed securities	123		365,505		69,500		18,987		1,203		346,518		68,297
Total	188	$	819,112	$	97,749	$	175,024	$	8,979	$	644,088	$	88,770

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $5.5 million related to AFS securities hedged in a closed portfolio totaling at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

-12-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	At December 31, 2022
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	55,561	$	11,375	$	55,561	$	11,375	$	—	$	—
Total other securities	3		55,561		11,375		55,561		11,375		—		—
FNMA	1		6,989		886		6,989		886		—		—
Total mortgage-backed securities	1		6,989		886		6,989		886		—		—
Total	4	$	62,550	$	12,261	$	62,550	$	12,261	$	—	$	—
Available for sale securities
U.S. government agencies	7	$	77,856	$	2,619	$	77,059	$	2,517	$	797	$	102
Corporate	20		131,766		14,664		45,447		3,553		86,319		11,111
CLO	19		125,478		4,206		95,518		2,916		29,960		1,290
Total other securities	46		335,100		21,489		218,024		8,986		117,076		12,503
REMIC and CMO	47		148,120		27,298		40,911		3,457		107,209		23,841
GNMA	8		7,133		1,879		64		—		7,069		1,879
FNMA	47		148,229		24,425		38,296		3,871		109,933		20,554
FHLMC	18		80,287		16,438		24,838		2,397		55,449		14,041
Total mortgage-backed securities	120		383,769		70,040		104,109		9,725		279,660		60,315
Total	166	$	718,869	$	91,529	$	322,133	$	18,711	$	396,736	$	72,818

The Company reviewed each available for sale security that had an unrealized loss at June 30, 2023, and December 31, 2022. The Company does not have the intent to sell these securities, and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. If the Company identifies any decline in the fair value due to credit loss factors and evaluation indicates that a credit loss exists, then the present value of cash flows that is expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. All of these securities are rated investment grade or above and have a long history of no credit losses. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment.

In determining the risk of loss for available for sale securities, the Company considered that mortgage-backed securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government, and that issuers of the collateralized loan obligations (“CLO”) and the issuer of corporate securities are global systematically important banks. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. Based on this review, management believes that the unrealized losses have resulted from other factors not deemed credit-related and no allowance for credit loss was recorded.

The Company reviewed each held-to-maturity security at June 30, 2023, and December 31, 2022 as part of its quarterly Current Expected Credit Loss (“CECL”) process, resulting in an allowance for credit losses of $1.1 million at each of June 30, 2023 and December 31, 2022.

-13-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

It is the Company’s policy to exclude accrued interest receivable from the calculation of the allowance for credit losses on held-to-maturity and the valuation of available for sale securities. Accrued interest receivable on held-to-maturity securities totaled $0.1 million each at June 30, 2023 and December 31, 2022 and accrued interest receivable on available for sale debt securities totaled $5.9 million and $3.7 million at June 30, 2023 and December 31, 2022, respectively.

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity.

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
		(In thousands)
Beginning balance	$	1,087	$	986	$	1,100	$	862
(Benefit) provision		(8)		99		(21)		223
Allowance for credit losses	$	1,079	$	1,085	$	1,079	$	1,085

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company did not sell any securities during the three and six months ended June 30, 2023 and 2022.

-14-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

5.     Loans

The following represents the composition of loans as of the dates indicated:

		June 30,		December 31,
	2023		2022
	(In thousands)
Multi-family residential	$	2,593,955	$	2,601,384
Commercial real estate		1,917,749		1,913,040
One-to-four family ― mixed-use property		542,368		554,314
One-to-four family ― residential		230,055		241,246
Construction		57,325		70,951
Small Business Administration		22,404		23,275
Commercial business and other		1,466,358		1,521,548
Net unamortized premiums and unearned loan fees		8,836		9,011
Total loans, net of fees and costs excluding portfolio layer basis adjustments		6,839,050		6,934,769
Unallocated portfolio layer basis adjustments (1)		(6,625)		—
Total loans, net of fees and costs	$	6,832,425	$	6,934,769

(1) This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on an accrual basis. Accrued interest receivable totaled $39.5 million and $36.8 million at June 30, 2023, and December 31, 2022, respectively, and was reported in “Interest and dividends receivable” on the Consolidated Statements of Financial Condition. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

Allowance for credit losses

The allowance for credit losses (“ACL”) is an estimate that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. Loans are charged off against that ACL when management believes that a loan balance is uncollectable based on quarterly analysis of credit risk.

The amount of the ACL is based upon a loss rate model that considers multiple factors which reflects management’s assessment of the credit quality of the loan portfolio. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses,

-15-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes.

The Company recorded a provision for credit losses on loans totaling $1.4 million and $1.5 million for the three months ended June 30, 2023 and 2022, respectively. The Company recorded a provision for credit losses on loans totaling $8.9 million and $2.7 million for the six months ended June 30, 2023 and 2022, respectively. The provision recorded during the six months ended June 30, 2023, was driven by fully reserving for two non-accrual business loans that were subsequently charged-off in the first quarter of 2023, and increasing reserves for the elevated risk presented by the current rate environment to adjustable-rate loan’s debt coverage ratios, partially offset by a decline in loan balances during the period. During the six months ended June 30, 2023, the reasonable and supportable forecast period and reversion period were two and four quarters, respectively unchanged, from December 31, 2022. The ACL - loans totaled $38.6 million on June 30, 2023 compared to $40.4 million on December 31, 2022. On June 30, 2023, the ACL - loans represented 0.57% of gross loans and 207.1% of non-performing loans. On December 31, 2022, the ACL - loans represented 0.58% of gross loans and 124.9% of non-performing loans.

The Company may modify loans to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. When modifying a loan, an assessment of whether a borrower is experiencing financial difficulty is made on the date of modification. This modification may include reducing the loan interest rate, extending the loan term, any other-than-insignificant payment delay, principal forgiveness or any combination of these types of modifications. When such modifications are performed, a change to the allowance for credit losses is generally not required as the methodologies used to estimate the allowance already capture the effect of borrowers experiencing financial difficulty. During the three months ended June 30, 2023, there was one loan modified to a borrower experiencing financial difficulty. On June 30, 2023, there were no commitments to lend additional funds to borrowers who have received a loan modification as a result of financial difficulty.

On January 1, 2023, the Company adopted ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” without material impact on the business operations or consolidated financial statements. See Note 14 (“New Authoritative Accounting Pronouncements”) of the Notes to the Consolidated Financial Statements.

The following table shows loans modifications made to borrowers experiencing financial difficulty during the periods indicated:

	For the three and six months ended, June 30, 2023
(Dollars in thousands)	Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Small Business Administration	1	$	1,490	6.7	%	Provided twelve month payment deferral to be collected at maturity.
Total	1	$	1,490

-16-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table shows the payment status of borrowers experiencing financial difficulty and for which a modification has occurred at June 30, 2023:

		Payment Status of Borrowers Experiencing Financial Difficulty (Amortized Cost Basis)
(In thousands)		Current		30-89 Days Past Due		90+ Days Past Due		Total Modified
Small Business Administration	$	1,490	$	—	$	—	$	1,490
Total	$	1,490	$	—	$	—	$	1,490

The following table shows loans modified as Troubled Debt Restructured (“TDR”) during the periods indicated:

	For the three months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Commercial business and other	2	$	2,453	Two loans had amortization extensions
Total	2	$	2,453

	For the six months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Small Business Administration	1	$	271	Loan amortization extension.
Commercial business and other	4		5,222	One loan received a below market interest rate and three loans had an amortization extension
Total	5	$	5,493

-17-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table shows loans classified as TDR at amortized cost that are performing according to their restructured terms at the periods indicated:

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Multi-family residential	6	$	1,673
Commercial real estate	1		7,572
One-to-four family - mixed-use property	4		1,222
One-to-four family - residential	1		253
Small Business Administration	1		242
Commercial business and other	3		855
Total performing	16	$	11,817

The following table shows our recorded investment for loans classified as TDR at amortized cost that are not performing according to their restructured terms at the periods indicated.

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Commercial business and other	2	$	3,263
Total troubled debt restructurings that subsequently defaulted	2	$	3,263

-18-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show our non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing for the periods shown below:

	At or for the six months ended June 30, 2023
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	3,547	$	3,600	$	3,600	$	2	$	—
Commercial real estate		254		—		—		—		—
One-to-four family - mixed-use property		1,045		797		797		—		—
One-to-four family - residential		3,953		4,632		4,632		—		—
Small Business Administration		950		1,124		1,124		—		—
Commercial business and other		20,193		8,287		3,585		16		—
Total	$	29,942	$	18,440	$	13,738	$	18	$	—

	At or for the year ended December 31, 2022
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	2,652	$	3,547	$	3,547	$	—	$	—
Commercial real estate		640		254		254		—		—
One-to-four family - mixed-use property (1)		1,582		1,045		1,045		—		—
One-to-four family - residential		7,483		3,953		3,953		—		—
Small Business Administration		952		950		950		—		—
Construction		—		—		—		—		2,600
Commercial business and other (1)		1,945		20,193		3,291		171		—
Total	$	15,254	$	29,942	$	13,040	$	171	$	2,600

(1) Included in the above analysis are non-accrual performing TDR one-to-four family – mixed-use property totaling $0.3 million at December 31, 2022. Commercial business and other contains a non-accrual performing TDR totaling less than $0.1 million at December 31, 2022.

-19-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following is a summary of interest foregone on non-accrual loans for the periods indicated.

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	474	$	588	$	980	$	960
Less: Interest income included in the results of operations		14		282		18		437
Total foregone interest	$	460	$	306	$	962	$	523

The following tables show the aging analysis of the amortized cost basis of loans at the period indicated by class of loans:
​

	June 30, 2023
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans (1)
Multi-family residential	$	2,504	$	—	$	3,600	$	6,104	$	2,591,360	$	2,597,464
Commercial real estate		—		—		—		—		1,916,994		1,916,994
One-to-four family - mixed-use property		773		—		797		1,570		543,652		545,222
One-to-four family - residential		2,694		173		4,632		7,499		223,716		231,215
Construction		—		—		—		—		57,205		57,205
Small Business Administration		325		—		1,124		1,449		20,864		22,313
Commercial business and other		494		5,234		5,279		11,007		1,457,630		1,468,637
Total	$	6,790	$	5,407	$	15,432	$	27,629	$	6,811,421	$	6,839,050

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

	December 31, 2022
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,475	$	1,787	$	3,547	$	6,809	$	2,598,363	$	2,605,172
Commercial real estate		2,561		—		254		2,815		1,912,083		1,914,898
One-to-four family - mixed-use property		3,721		—		797		4,518		552,777		557,295
One-to-four family - residential		2,734		—		3,953		6,687		235,793		242,480
Construction		—		—		2,600		2,600		68,224		70,824
Small Business Administration		329		—		950		1,279		21,914		23,193
Commercial business and other		7,636		16		10,324		17,976		1,502,931		1,520,907
Total	$	18,456	$	1,803	$	22,425	$	42,684	$	6,892,085	$	6,934,769

-20-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables show the activity in the ACL on loans for the following three month periods:

	June 30, 2023
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	9,041	$	7,671	$	1,710	$	727	$	152	$	2,169	$	—	$	17,259	$	38,729
Charge-offs		—		(8)		—		(6)		—		(1)		—		(1,716)		(1,731)
Recoveries		—		—		—		2		—		159		—		10		171
Provision (benefit)		677		543		(95)		(69)		(20)		(165)		—		553		1,424
Ending balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	—	$	16,106	$	38,593

	June 30, 2022
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	8,561	$	7,716	$	1,864	$	766	$	268	$	1,837	$	—	$	16,421	$	37,433
Charge-offs		—		—		—		—		—		(26)		—		(24)		(50)
Recoveries		1		—		—		2		—		14		435		99		551
Provision (benefit)		843		727		95		98		32		293		(435)		(163)		1,490
Ending balance	$	9,405	$	8,443	$	1,959	$	866	$	300	$	2,118	$	—	$	16,333	$	39,424

The following tables show the activity in the ACL on loans for the following six month periods:

	June 30, 2023
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	9,552	$	8,184	$	1,875	$	901	$	261	$	2,198	$	—	$	17,471	$	40,442
Charge-offs		—		(8)		—		(12)		—		(7)		—		(11,002)		(11,029)
Recoveries		1		—		—		44		—		171		—		19		235
Provision (benefit)		165		30		(260)		(279)		(129)		(200)		—		9,618		8,945
Ending balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	—	$	16,106	$	38,593

	June 30, 2022
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	8,185	$	7,158	$	1,755	$	784	$	186	$	1,209	$	—	$	17,858	$	37,135
Charge-offs		—		—		—		—		—		(1,054)		—		(32)		(1,086)
Recoveries		1		—		—		4		—		27		447		173		652
Provision (benefit)		1,219		1,285		204		78		114		1,936		(447)		(1,666)		2,723
Ending balance	$	9,405	$	8,443	$	1,959	$	866	$	300	$	2,118	$	—	$	16,333	$	39,424

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans.” If a loan does not fall within one of the previously mentioned categories and management believes weakness is evident then we designate the loan as “Watch;” all other loans would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize the orderly liquidation of the debt. We designate a loan as Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does not hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Credit Losses. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications but does contain a potential weakness that deserves closer attention.

-21-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table summarizes the various risk categories of mortgage and non-mortgage loans by loan portfolio segments and by class of loans by year of origination at June 30, 2023:

	For the year ended
														Revolving Loans		Revolving Loans
														Amortized Cost		converted to
(In thousands)		2023		2022		2021		2020		2019		Prior		Basis		term loans		Total
Multi-family Residential
Pass	$	89,777	$	477,475	$	283,598	$	218,950	$	308,790	$	1,178,081	$	3,564	$	—	$	2,560,235
Watch		—		892		—		2,860		—		28,246		—		—		31,998
Special Mention		—		—		—		—		—		873		—		—		873
Substandard		—		—		—		—		—		4,358		—		—		4,358
Total Multi-family Residential	$	89,777	$	478,367	$	283,598	$	221,810	$	308,790	$	1,211,558	$	3,564	$	—	$	2,597,464
Commercial Real Estate
Pass	$	59,422	$	325,928	$	178,735	$	149,773	$	222,077	$	948,085	$	—	$	—	$	1,884,020
Watch		—		1,960		1,484		—		9,570		19,783		—		—		32,797
Special Mention		—		—		—		—		—		177		—		—		177
Total Commercial Real Estate	$	59,422	$	327,888	$	180,219	$	149,773	$	231,647	$	968,045	$	—	$	—	$	1,916,994
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8
1-4 Family Mixed-Use Poperty
Pass	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	343,763	$	—	$	—	$	538,018
Watch		—		—		—		—		—		5,786		—		—		5,786
Special Mention		—		—		—		—		—		450		—		—		450
Substandard		—		—		—		—		—		968		—		—		968
Total 1-4 Family Mixed-Use Property	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	350,967	$	—	$	—	$	545,222
1-4 Family Residential
Pass	$	4,141	$	23,445	$	8,579	$	17,905	$	40,029	$	108,935	$	7,607	$	11,106	$	221,747
Watch		—		513		278		—		738		1,607		63		1,413		4,612
Special Mention		—		—		—		—		—		—		—		173		173
Substandard		—		—		—		—		—		4,240		—		443		4,683
Total 1-4 Family Residential	$	4,141	$	23,958	$	8,857	$	17,905	$	40,767	$	114,782	$	7,670	$	13,135	$	231,215
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	12	$	—	$	—	$	12
Construction
Pass	$	4,357	$	3	$	10,186	$	—	$	—		—	$	42,659	$	—	$	57,205
Total Construction	$	4,357	$	3	$	10,186	$	—	$	—	$	—	$	42,659	$	—	$	57,205
Small Business Administration
Pass	$	814	$	3,318	$	3,202	$	3,719	$	690	$	4,271	$	—	$	—	$	16,014
Watch		—		—		—		—		49		3,238		—		—		3,287
Special Mention		—		—		1,639		—		—		34		—		—		1,673
Substandard		—		—		176		—		—		1,163		—		—		1,339
Total Small Business Administration	$	814	$	3,318	$	5,017	$	3,719	$	739	$	8,706	$	—	$	—	$	22,313
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial Business
Pass	$	51,057	$	135,313	$	79,438	$	31,380	$	32,052	$	78,303	$	284,806	$	—	$	692,349
Watch		211		381		8,102		2,446		16,403		22,728		684		—		50,955
Special Mention		—		—		—		4,775		29		1,757		—		—		6,561
Substandard		—		2,368		—		—		28		3,624		3,375		—		9,395
Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Commercial Business	$	51,268	$	138,062	$	87,540	$	38,601	$	48,512	$	106,412	$	293,567	$	—	$	763,962
Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	10	$	9,267	$	—	$	10,960
Commercial Business - Secured by RE
Pass	$	21,100	$	179,716	$	132,943	$	107,726	$	40,571	$	147,446	$	—	$	—	$	629,502
Watch		—		—		—		—		610		59,556		—		—		60,166
Special Mention		—		—		—		—		14,800		—		—		—		14,800
Total Commercial Business - Secured by RE	$	21,100	$	179,716	$	132,943	$	107,726	$	55,981	$	207,002	$	—	$	—	$	704,468
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Total Other	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	42	$	—	$	—	$	42
Total by Loan Type
Total Pass	$	242,965	$	1,189,488	$	739,067	$	561,511	$	707,433	$	2,809,001	$	338,726	$	11,106	$	6,599,297
Total Watch		211		3,746		9,864		5,306		27,370		140,944		747		1,413		189,601
Total Special Mention		—		—		1,639		4,775		14,829		3,291		—		173		24,707
Total Substandard		—		2,368		176		—		28		14,353		3,375		443		20,743
Total Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Loans (1)	$	243,176	$	1,195,602	$	750,746	$	571,592	$	749,660	$	2,967,589	$	347,550	$	13,135	$	6,839,050
Total Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	79	$	9,267	$	—	$	11,029

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

-22-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

Included within net loans were $5.7 million and $5.2 million at June 30, 2023 and December 31, 2022, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents types of collateral-dependent loans by class of loans as of the periods indicated:

	Collateral Type
	June 30, 2023				December 31, 2022
(In thousands)		Real Estate		Business Assets		Real Estate		Business Assets
Multi-family residential	$	3,600	$	—	$	3,547	$	—
Commercial real estate		—		—		254		—
One-to-four family - mixed-use property		797		—		1,045		—
One-to-four family - residential		4,632		—		3,953		—
Small Business Administration		—		1,124		—		950
Commercial business and other		—		8,287		2,853		17,340
Total	$	9,029	$	9,411	$	11,652	$	18,290

Off-Balance Sheet Credit Losses

Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”. Commitments “in‐process” reflect loans not in the Company’s books but rather negotiated loan / line of credit terms and rates that the Company has offered to customers and is committed to honoring. In reference to “in‐process” credits, the Company defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable.

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) totaled $402.4 million and $438.5 million on June 30, 2023, and December 31, 2022, respectively.

The following table presents the activity in the allowance for off-balance sheet credit losses for the three and six months ended June 30, 2023, and 2022.

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands)
Balance at beginning of period	$	885	$	1,589	$	970	$	1,209
(Benefit) provision		(72)		(145)		(157)		235
Allowance for Off-Balance Sheet - Credit losses (1)	$	813	$	1,444	$	813	$	1,444

(1) Included in “Other liabilities” on the Consolidated Statements of Financial Condition.

-23-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

6.     Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At June 30, 2023 and December 31, 2022, the Bank did not have any loans held for sale.

The following table shows loans sold during the periods indicated:

	For the three months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	2	$	2,074	$	—	$	14
Commercial	1		1,026		—		—
One-to-four family - mixed-use property	2		1,366		—		40
Total	5	$	4,466	$	—	$	54

	For the six months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	7	$	3,622	$	—	$	69
Commercial	3		1,867		(8)		—
One-to-four family - mixed-use property	3		1,553		—		39
Total	13	$	7,042	$	(8)	$	108

	For the three and six months ended June 30, 2022
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Performing loans
Multi-family residential	4	$	10,136	$	—	$	—
Commercial	1		4,312		—		—
Total	5	$	14,448	$	—	$	—
Delinquent and non-performing loans
Commercial	1		3,687		—		73
One-to-four family - mixed-use property	1	$	430	$	—	$	—
Total	2	$	4,117	$	—	$	73

-24-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

7.     Leases

The Company has 31 operating leases for branches (including headquarters) and office spaces, 9 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from four months to approximately 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has four agreements in 2023 and two agreements in 2022 that qualified as short-term leases.

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2036.

Supplemental balance sheet information related to leases are as follows:

(Dollars in thousands)	June 30, 2023			December 31, 2022
Operating lease ROU asset	$	41,526		$	43,289
Operating lease liability	$	44,402		$	46,125
Weighted-average remaining lease term-operating leases		6.5 years			6.6 years
Weighted average discount rate-operating leases		3.2	%		2.9	%

-25-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The components of lease expense and cash flow information related to leases were as follows:

		For the three months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,143	$	2,099
Operating lease cost	Other operating expenses		23		26
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		82		36
Variable lease cost	Occupancy and equipment		281		238
Total lease cost		$	2,529	$	2,399
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	2,261	$	2,343
Right-of-use assets obtained in exchange for new operating lease liabilities		$	1,198	$	—

		For the six months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	4,442	$	4,198
Operating lease cost	Other operating expenses		46		48
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		138		97
Variable lease cost	Occupancy and equipment		523		438
Total lease cost		$	5,149	$	4,781
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	4,655	$	4,769
Right-of-use assets obtained in exchange for new operating lease liabilities		$	2,044	$	47

-26-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of June 30, 2023:

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	5,218
2024		9,520
2025		8,850
2026		7,955
2027		3,865
Thereafter		13,689
Total minimum payments required		49,097
Less: implied interest		4,695
Total lease obligations	$	44,402

8.     Stock-Based Compensation

The Company has a long-term incentive compensation program for certain Company executive officers that includes grants of performance-based restricted stock units (“PRSUs”) in addition to time-based restricted stock units (“RSU”). Under the terms of the PRSU Agreement, the number of PRSUs that may be earned depends on the extent to which performance goals for the award are achieved over a three-year performance period, as determined by the Compensation Committee of the Board. As of June 30, 2023, PRSUs granted in 2023 and 2022 are being accrued at target and PRSUs granted in 2021 are being accrued above target. The different levels of accrual are commensurate with the projected performance of the respective grant.

On May 18, 2021, stockholders approved an amendment to the 2014 Omnibus Plan (the “Amendment”) authorizing an additional 1,100,000 shares available for future issuance. Including the additional shares authorized from the Amendment, 744,593 shares were available for future issuance under the 2014 Omnibus Plan at June 30, 2023.

For the three months ended June 30, 2023 and 2022, the Company’s net income, as reported, included $0.5 million and $0.9 million, respectively, of stock-based compensation costs, including the benefit or expense of phantom stock awards, and $0.1 million and $0.3 million of income tax benefit respectively, related to the stock-based compensation plans. For the six months ended June 30, 2023 and 2022, the Company’s net income, as reported, included $3.6 million and $4.9 million, respectively, of stock-based compensation costs, including the benefit or expense of phantom stock awards, and $0.9 million and $1.3 million of income tax benefit, respectively, related to the stock-based compensation plans.

During the three months ended June 30, 2023 and 2022, the Company did not grant any RSU or PRSUs. During the six months ended June 30, 2023 and 2022, the Company granted 235,850 and 212,811 RSU awards and 79,050 and 63,250 PRSU awards, respectively.  

-27-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit awards and performance restricted stock units. Compensation cost is recognized over the vesting period of the award using the straight-line method. Forfeitures are recorded in the period they occur.

The following table summarizes the Company’s RSU and PRSU awards under the 2014 Omnibus Plan for the six months ended June 30, 2023:

	RSU Awards			PRSU Awards
		Weighted-Average			Weighted-Average
		Grant-Date			Grant-Date
	Shares	Fair Value		Shares	Fair Value
Non-vested awards at December 31, 2022	275,588	$	22.30	68,800	$	20.90
Granted	235,850		19.84	79,050		19.99
Vested	(213,639)		21.19	(53,430)		19.94
Forfeited	(2,840)		22.14	—		—
Non-vested at June 30, 2023	294,959	$	21.14	94,420	$	20.68
Vested but unissued at June 30, 2023	249,780	$	20.78	142,065	$	20.80

As of June 30, 2023, there was $5.8 million of total unrecognized compensation cost related to RSU and PRSU awards granted. That cost is expected to be recognized over a weighted-average period of 2.7 years. The total fair value of awards vested for the three months ended June 30, 2023 and 2022, was $0.2 million, and $0.5 million, respectively. The total fair value of awards vested for the six months ended June 30, 2023 and 2022 was $5.2 million and $7.1 million, respectively. The vested but unissued RSU and PRSU awards consist of awards made to employees and directors who are eligible for retirement. According to the terms of these awards, which provide for vesting upon retirement, these employees and directors have no risk of forfeiture. These shares will be issued at the original contractual vesting and settlement dates.

Phantom Stock Plan: The Company maintains a non-qualified phantom stock plan as a supplement to its profit-sharing plan for officers who have achieved the designated level and completed one year of service. The Company adjusts its liability under this plan to the fair value of the shares at the end of each period.

The following table summarizes the Phantom Stock Plan at or for the six months ended June 30, 2023:

Phantom Stock Plan	Shares	Fair Value		Weighted-Average Fair Value
Outstanding at December 31, 2022	158,410	$	19.38
Granted	18,403			$	18.12
Distributions	(858)			$	18.87
Outstanding at June 30, 2023	175,955	$	12.29
Vested at June 30, 2023	175,819	$	12.29

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.4 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively. The total fair value of the distributions from the Phantom Stock Plan was $1,000 and $2,000 for the three months ended June 30, 2023 and 2022, respectively.

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $1.1 million and $0.4 million for the six months ended June 30, 2023 and 2022, respectively. The total fair value of the distributions from the Phantom Stock Plan was $16,000 and $18,000 for the six months ended June 30, 2023, and 2022, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

9.     Pension and Other Postretirement Benefit Plans

The following table sets forth information regarding the components of net expense for the pension and other postretirement benefit plans.

	Three months ended				Six months ended
	June 30,				June 30,
(In thousands)	2023		2022		2023		2022
Employee Pension Plan:
Interest cost	$	203	$	138	$	406	$	276
Amortization of unrecognized loss		—		1		—		2
Expected return on plan assets		(277)		(258)		(554)		(515)
Net employee pension benefit (1)	$	(74)	$	(119)	$	(148)	$	(237)
Outside Director Pension Plan:
Service cost	$	2	$	3	$	4	$	6
Interest cost		14		12		29		23
Amortization of unrecognized gain		(40)		(7)		(80)		(14)
Net outside director pension (benefit) expense (2)	$	(24)	$	8	$	(47)	$	15
Other Postretirement Benefit Plans:
Service cost	$	40	$	67	$	80	$	134
Interest cost		96		69		191		139
Amortization of unrecognized gain		(60)		—		(120)		—
Amortization of past service credit		—		(7)		—		(14)
Net other postretirement expense (1)	$	76	$	129	$	151	$	259

(1) Reported in the Consolidated Statements of Income as part of salaries and employee benefits.

(2) Reported in the Consolidated Statements of Income as part of other operating expenses.

The Company previously disclosed in its Consolidated Financial Statements for the year ended December 31, 2022 that it expects to contribute $0.2 million to the Outside Director Pension Plan (the “Outside Director Pension Plan”) and $0.3 million to the other postretirement benefit plans (the “Other Postretirement Benefit Plans”), during the year ending December 31, 2023. The Company does not expect to make a contribution to the Employee Pension Plan. As of June 30, 2023, the Company had contributed $44,000 to the Outside Director Pension Plan and $65,000 to the Other Postretirement Benefit Plans. As of June 30, 2023, the Company has not revised its expected contributions for the year ending December 31, 2023.

-29-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

10.     Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with GAAP which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value. At June 30, 2023, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.1 million and $47.8 million, respectively. At December 31, 2022, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.0 million and $50.5 million, respectively. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the three and six months ended June 30, 2023 and 2022.

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, at or for the periods ended as indicated:

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at June 30,		at December 31,		For the three months ended				For the six months ended
Description	2023		2022		June 2023		June 2022		June 2023		June 2022
(In thousands)
Mortgage-backed securities	$	278	$	295	$	—	$	(8)	$	1	$	(12)
Other securities		12,781		12,728		(192)		(484)		(83)		(1,020)
Borrowed funds		47,777		50,507		486		3,025		2,995		1,756
Net gain from fair value adjustments					$	294	$	2,533	$	2,913	$	724

Included in the fair value of the financial assets and financial liabilities selected for the fair value option is the accrued interest receivable or payable for the related instrument. The Company reports as interest income or interest expense in the Consolidated Statement of Income, the interest receivable or payable on the financial instruments selected for the fair value option at their respective contractual rates.

The borrowed funds had a contractual principal amount of $61.9 million at both June 30, 2023 and December 31, 2022. The fair value of borrowed funds includes accrued interest payable of $0.4 million at both June 30, 2023 and December 31, 2022.

The Company generally holds its earning assets to maturity and settles its liabilities at maturity. However, fair value estimates are made at a specific point in time and are based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Accordingly, as assumptions change, such as interest rates and prepayments, fair value estimates change, and these amounts may not necessarily be realized in an immediate sale.

Disclosure of fair value does not require fair value information for items that do not meet the definition of a financial instrument or certain other financial instruments specifically excluded from its requirements. These items include core deposit intangibles and other customer relationships, premises and equipment, leases, income taxes and equity.

Further, fair value disclosure does not attempt to value future income or business. These items may be material and accordingly, the fair value information presented does not purport to represent, nor should it be construed to represent, the underlying “market” or franchise value of the Company.

-30-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

A description of the methods and significant assumptions utilized in estimating the fair value of the Company’s financial assets and liabilities that are carried at fair value on a recurring basis are as follows:

Level 1 – when quoted market prices are available in an active market. At June 30, 2023 and December 31, 2022, Level 1 included one mutual fund.

Level 2 – when quoted market prices are not available, fair value is estimated using quoted market prices for similar financial instruments and adjusted for differences between the quoted instrument and the instrument being valued. Fair value can also be estimated by using pricing models, or discounted cash flows. Pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices and credit spreads. In addition to observable market information, models also incorporate maturity and cash flow assumptions. At June 30, 2023 and December 31, 2022, Level 2 included mortgage-backed securities, CLOs, corporate debt, municipals, and interest rate swaps.

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At June 30, 2023 and December 31, 2022, Level 3 included trust preferred securities owned, and junior subordinated debentures issued by the Company.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies, assumptions, and models to determine fair value of certain financial instruments could produce different estimates of fair value at the reporting date.

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, including those reported at fair value under the fair value option, and the level that was used to determine their fair value, at June 30, 2023 and December 31, 2022:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
Assets:	(In thousands)
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	365,911	$	384,283	$	—	$	—	$	365,911	$	384,283
Other securities		11,346		11,211		490,865		338,347		1,434		1,516		503,645		351,074
Interest rate swaps		—		—		87,732		74,586		—		—		87,732		74,586
Total assets	$	11,346	$	11,211	$	944,508	$	797,216	$	1,434	$	1,516	$	957,288	$	809,943
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	47,777	$	50,507	$	47,777	$	50,507
Interest rate swaps		—		—		16,510		18,407		—		—		16,510		18,407
Total liabilities	$	—	$	—	$	16,510	$	18,407	$	47,777	$	50,507	$	64,287	$	68,914

-31-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the periods indicated:  

	For the three months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,445	$	48,117	$	1,740	$	57,955
Net (loss) gain from fair value adjustment of financial assets (1)		(12)		—		(80)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(486)		—		(3,025)
Increase (decrease) in accrued interest		1		28		2		61
Change in unrealized (gains) losses included in other comprehensive loss		—		118		—		361
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

(1) Presented in the Consolidated Statements of Income under net gain (loss) from fair value adjustments.

	For the six months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,516	$	50,507	$	1,695	$	56,472
Net (loss) gain from fair value adjustment of financial assets (1)		(83)		—		(35)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(2,995)		—		(1,756)
Increase (decrease) in accrued interest		1		40		2		77
Change in unrealized (gains) losses included in other comprehensive loss		—		225		—		559
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

The following tables present the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	June 30, 2023
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,434	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%
Liabilities:
Junior subordinated debentures	$	47,777	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%

-32-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	December 31, 2022
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,516	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%
Liabilities:
Junior subordinated debentures	$	50,507	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities and junior subordinated debentures valued under Level 3 at June 30, 2023 and December 31, 2022, are the effective yields used in the cash flow models. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a non-recurring basis and the level that was used to determine their fair value at June 30, 2023 and December 31, 2022:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
	(In thousands)
Assets:
Certain delinquent loans	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330
Total assets	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330

The following tables present the qualitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	At June 30, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	5,776	Sales approach	Adjustment to sales comparison value	-16.9% to 0.0	%	-2.2	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	11.0	%
Certain delinquent loans	$	1,261	Discounted Cashflow	Discount Rate	4.3% to 9.2	%	9.0	%
				Probability of Default	29.0% to 35.0	%	29.3	%

-33-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	At December 31, 2022
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	18,189	Sales approach	Adjustment to sales comparison value	-20.0% to 0.0	%	-1.3	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	13.6	%
Certain delinquent loans	$	141	Discounted Cashflow	Discount Rate	4.3	%	4.3	%
				Probability of Default	35.0	%	35.0	%

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at June 30, 2023 and December 31, 2022.

The methods and assumptions used to estimate fair value at June 30, 2023 and December 31, 2022 are as follows:

Securities:

The fair values of securities are contained in Note 4 (“Securities”) of the Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices, where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. When there is limited activity or less transparency around inputs to the valuation, securities are valued using discounted cash flows.

Certain Delinquent Loans:

For certain delinquent loans, fair value is generally estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets or, for collateral dependent loans, 85% of the appraised or internally estimated value of the property. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Junior Subordinated Debentures:

The fair value of the junior subordinated debentures was developed using a credit spread based on stated spreads for recently issued subordinated debt instruments for issuers of similar asset size and credit quality of the Company and with similar durations adjusting for differences in the junior subordinated debt’s credit rating, liquidity, and time to maturity. The unrealized net gain/loss attributable to changes in our own credit risk was determined by adjusting the fair value as determined in the proceeding sentence by the average rate of default on debt instruments with a similar debt rating as our junior subordinated debentures, with the difference from the original calculation and this calculation resulting in the instrument-specific unrealized gain/loss.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon broker quotes.

-34-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables set forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at the periods indicated:

	June 30, 2023
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	160,053	$	160,053	$	160,053	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,865		7,011		—		7,011		—
Other securities		65,469		57,326		—		—		57,326
Securities available for sale
Mortgage-backed securities		365,911		365,911		—		365,911		—
Other securities		503,645		503,645		11,346		490,865		1,434
Loans		6,832,425		6,488,955		—		—		6,488,955
FHLB-NY stock		36,168		36,168		—		36,168		—
Accrued interest receivable		52,911		52,911		—		5,821		47,090
Interest rate swaps		87,732		87,732		—		87,732		—
Liabilities:
Deposits	$	6,723,690	$	6,663,332	$	4,490,994	$	2,172,338	$	—
Borrowed Funds		857,400		807,724		—		759,947		47,777
Accrued interest payable		9,234		9,234		—		9,234		—
Interest rate swaps		16,510		16,510		—		16,510		—

	December 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	151,754	$	151,754	$	151,754	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,875		6,989		—		6,989		—
Other securities		65,836		55,561		—		—		55,561
Securities available for sale
Mortgage-backed securities		384,283		384,283		—		384,283		—
Other securities		351,074		351,074		11,211		338,347		1,516
Loans		6,934,769		6,651,795		—		—		6,651,795
FHLB-NY stock		45,842		45,842		—		45,842		—
Accrued interest receivable		45,048		45,048		—		3,819		41,229
Interest rate swaps		74,856		74,856		—		74,856		—
Liabilities:
Deposits	$	6,485,342	$	6,453,978	$	4,959,004	$	1,494,974	$	—
Borrowed Funds		1,052,973		1,027,370		—		976,863		50,507
Accrued interest payable		10,034		10,034		—		10,034		—
Interest rate swaps		18,407		18,407		—		18,407		—

-35-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

11.     Derivative Financial Instruments

At June 30, 2023 and December 31, 2022, the Company’s derivative financial instruments consisted of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans and securities with $864.2 million and $273.6 million of swaps outstanding at June 30, 2023 and December 31, 2022, respectively; 2) to facilitate risk management strategies for our loan customers with $240.7 million of swaps outstanding, which include $120.4 million each with customers and bank counterparties at June 30, 2023 and $221.2 million of swaps outstanding, which include $110.6 million each with customers and bank counterparties at December 31, 2022; and 3) to mitigate exposure to rising interest rates on certain short-term advances, brokered deposits and municipal deposits with $922.5 million of swaps outstanding at June 30, 2023, and $871.5 million of swaps outstanding at December 31, 2022.

The Company adopted ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method in the first quarter of 2023. During the six months ended June 30, 2023, the Company entered into portfolio layer hedges on a closed portfolio of AFS securities with a notional amount of $200.0 million and a closed portfolio of loans with a notional amount of $400.0 million. See Note 14 (“New Authoritative Accounting Pronouncements”) of the Notes to the Consolidated Financial Statements.

For non-portfolio layer method fair value hedges, the hedge basis (the amount of the change in fair value) is added to (or subtracted from) the carrying amount of the hedged item. For portfolio layer method hedges, the hedge basis does not adjust the carrying value of the hedged item and is instead maintained on a closed portfolio basis. These basis adjustments would be allocated to the amortized cost of specific loans or AFS securities within the pools if either of the hedges were de-designated. The Company did not have any portfolio layer hedges prior to the first quarter of 2023.

At June 30, 2023 and December 31, 2022, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges.

The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other Assets for derivatives with positive fair values and Other Liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship.

At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $241.7 million and $221.2 million, respectively, were not designated as hedges. At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $864.2 million and $273.6 million, respectively, were designated as fair value hedges. At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $921.5 million and $871.5 million, respectively, were designated as cash flow hedges.

For cash flow hedges, the changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss), net of tax. Amounts in accumulated other comprehensive loss are reclassified into earnings in the same period during which the hedged forecasted transaction effected earnings. During the three months ended June 30, 2023 and 2022, $6.8 million in reduced expense and $2.4 million in additional expense, respectively, was reclassified from accumulated other comprehensive loss to interest expense. During the six months ended June 30, 2023 and 2022, $11.0 million in reduced expense and $5.1 million in additional expense was reclassified from accumulated other comprehensive loss to interest expense. The estimated amount to be reclassified in the next 12 months out of accumulated other comprehensive loss is $25.5 million in reduced expense.

Changes in the fair value of interest rate swaps not designated as hedges are reflected in “Net gain (loss) from fair value adjustments” in the Consolidated Statements of Income.

-36-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated:

	Assets				Liabilities
	Notional				Notional
	Amount		Fair Value (1)		Amount		Fair Value (1)
June 30, 2023	(In thousands)
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	921,500	$	35,655	$	-	$	-
Fair value hedges:
Interest rate swaps (loans and securities)		864,192		35,564		-		-
Non hedge:
Interest rate swaps (loans and deposits)		121,351		16,513		120,351		16,510
Total	$	1,907,043	$	87,732	$	120,351	$	16,510
December 31, 2022
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	700,750	$	31,716	$	170,750	$	210
Fair value hedges:
Interest rate swaps (loans)		273,607		24,673		-		-
Non hedge:
Interest rate swaps (loans)		110,598		18,197		110,598		18,197
Total	$	1,084,955	$	74,586	$	281,348	$	18,407

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

The following table presents information regarding the Company’s fair value hedged items for the periods indicated:

						Cumulative Amount
						of the Fair Hedging Adjustment
Line Item in the Consolidated Statement		Carrying Amount of the				Included in the Carrying Amount of
of Financial Condition in Which		Hedged				the Hedged
the Hedged Item Is Included		Assets/(Liabilities)				Assets/(Liabilities)
(In thousands)		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Loans
Multi-family residential	$	81,741	$	82,613	$	(10,094)	$	(10,480)
Commercial real estate		159,727		167,353		(14,686)		(15,442)
Total	$	241,468	$	249,966	$	(24,780)	$	(25,922)
Portfolio Layer
Loans held for Investment (1)	$	2,651,394	$	—	$	(6,625)	$	—
Securities available for sale (2)		294,931		—		(5,504)		—
Total	$	2,946,325	$	—	$	(12,129)	$	—

(1) Carrying amount represents the amortized cost. At June 30, 2023, the amortized cost of the portfolio layer method closed portfolio was $2.7 billion, of which $400 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $6.6 million.

(2) Carrying amount represents the fair value. At June 30, 2023, the fair value of the portfolio layer method closed portfolio was $295 million, of which $200 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $5.5 million.

-37-

PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

		For the three months ended				For the six months ended
	Affected Line Item in the Statements	June 30,				June 30,
(In thousands)	Where Net Income is Presented	2023		2022		2023		2022
Financial Derivatives:
Interest rate swaps - fair value hedge (loans)	Interest and fees on loans	$	2,669	$	(886)	$	4,566	$	(2,321)
Interest rate swaps - fair value hedge (securities)	Interest and dividends on securities		788		—		846		—
Interest rate swaps - non hedge (municipal deposits)	Deposits		3		—		3		—
Interest rate swaps - cash flow hedge (short-term advances)	Other interest expense		1,922		(1,489)		3,343		(3,954)
Interest rate swaps - cash flow hedge (brokered deposits)	Deposits		4,958		104		7,825		49
Total net income (expense) from the effects of derivative instruments		$	10,340	$	(2,271)	$	16,583	$	(6,226)

The Company’s interest rate swaps are subject to master netting arrangements between the Company and its designated counterparties. The Company has not made a policy election to offset its derivative positions.

The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Financial Condition as of the dates indicated:

			Gross Amount		Net Amount
	Gross Amounts		Offset in Statement of		Presented in Statement of		Financial		Cash
(In thousands)	Recognized		Financial Condition		Financial Condition		Instruments		Collateral		Net Amount
June 30, 2023
Assets:
Interest rate swaps	$	87,732	$	—	$	87,732	$	—	$	(83,485)	$	4,247
Liabilities:
Interest rate swaps		16,510		—		16,510		—		—		16,510
December 31, 2022
Assets:
Interest rate swaps	$	74,586	$	—	$	74,586	$	—	$	(72,185)	$	2,401
Liabilities:
Interest rate swaps		18,407		—		18,407		—		—		18,407

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

12.     Accumulated Other Comprehensive Income (Loss):

The following tables set forth the changes in accumulated other comprehensive income (loss) by component for the periods indicated:

	For the three months ended June 30, 2023
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(59,119)	$	20,240	$	(344)	$	1,439	$	(37,784)
Other comprehensive income before reclassifications, net of tax		(7,349)		10,991		—		(81)		3,561
Amounts reclassified from accumulated other comprehensive income, net of tax		2,945		(4,672)		(69)		—		(1,796)
Net current period other comprehensive income, net of tax		(4,404)		6,319		(69)		(81)		1,765
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the three months ended June 30, 2022
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(29,699)	$	13,345	$	(1,291)	$	2,141	$	(15,504)
Other comprehensive income before reclassifications, net of tax		(20,434)		3,285		—		(219)		(17,368)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		1,630		(22)		—		1,608
Net current period other comprehensive income (loss), net of tax		(20,434)		4,915		(22)		(219)		(15,760)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

	For the six months ended June 30, 2023
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(63,106)	$	25,380	$	(275)	$	1,513	$	(36,488)
Other comprehensive income before reclassifications, net of tax		(4,216)		8,799		—		(155)		4,428
Amounts reclassified from accumulated other comprehensive income, net of tax		3,799		(7,620)		(138)		—		(3,959)
Net current period other comprehensive income (loss), net of tax		(417)		1,179		(138)		(155)		469
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the six months ended June 30, 2022
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(6,272)	$	(1,406)	$	(1,282)	$	2,276	$	(6,684)
Other comprehensive income before reclassifications, net of tax		(43,861)		16,177		—		(354)		(28,038)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		3,489		(31)		—		3,458
Net current period other comprehensive income (loss), net of tax		(43,861)		19,666		(31)		(354)		(24,580)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The following tables set forth significant amounts reclassified from accumulated other comprehensive income (loss) by component for the periods indicated:

For the three months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(4,266)		Interest and dividend income
		1,321		Provision for income taxes
	$	(2,945)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	6,785		Interest expense
		(2,113)		Provision for income taxes
	$	4,672
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	100	(1)	Other operating expenses
		(31)		Provision for income taxes
	$	69

For the three months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(2,364)		Interest expense
		734		Provision for income taxes
	$	(1,630)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	6	(1)	Other operating expenses
Prior service credits benefit (expense)		7	(1)	Other operating expenses
		13		Total before tax
		9		Provision for income taxes
	$	22

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

For the six months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(5,504)		Interest and dividend income
		1,705		Provision for income taxes
	$	(3,799)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	11,040		Interest expense
		(3,420)		Provision for income taxes
	$	7,620
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	200	(1)	Other operating expense
		(62)		Provision for income taxes
	$	138

For the six months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(5,087)		Interest expense
		1,598		Provision for income taxes
	$	(3,489)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	12	(1)	Other operating expense
Prior service credits benefit (expense)		14	(1)	Other operating expense
		26		Total before tax
		5		Provision for income taxes
	$	31

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 9 (“Pension and Other Postretirement Benefit Plans”) for additional information

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

13.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards and a Capital Conservation Buffer (“CCB”). As of June 30, 2023, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Bank was 6.33% and 6.37% at June 30, 2023 and December 31, 2022, respectively.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	915,247	10.67	%	$	915,628	10.56	%
Requirement to be well-capitalized		428,869	5.00			433,667	5.00
Excess		486,378	5.67			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		432,313	6.50			431,734	6.50
Excess		482,934	7.26			483,894	7.29
Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		532,077	8.00			531,365	8.00
Excess		383,170	5.76			384,263	5.79
Total risk-based capital:
Capital level	$	953,277	14.33	%	$	954,457	14.37	%
Requirement to be well-capitalized		665,097	10.00			664,206	10.00
Excess		288,180	4.33			290,251	4.37

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of June 30, 2023, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at June 30, 2023 and December 31, 2022 was 5.07% and 5.25%, respectively.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	735,810	8.56	%	$	746,880	8.61	%
Requirement to be well-capitalized		429,905	5.00			433,607	5.00
Excess		305,905	3.56			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	689,876	10.38	%	$	698,258	10.52	%
Requirement to be well-capitalized		432,201	6.50			431,635	6.50
Excess		257,675	3.88			266,623	4.02
Tier I risk-based capital:
Capital level	$	735,810	11.07	%	$	746,880	11.25	%
Requirement to be well-capitalized		531,940	8.00			531,243	8.00
Excess		203,870	3.07			215,637	3.25
Total risk-based capital:
Capital level	$	963,840	14.50	%	$	975,709	14.69	%
Requirement to be well-capitalized		664,925	10.00			664,054	10.00
Excess		298,915	4.50			311,655	4.69

14.     New Authoritative Accounting Pronouncements

Accounting Standards Adopted in 2023:

In March 2022, FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (Topic 326), which replaces the recognition and measurement guidance related to TDRs for creditors that have adopted ASC Topic 326 (commonly referred to as “CECL”) with the recognition and measurement guidance contained in Accounting Standards Codification (“ASC”) 310-20, to determine whether a modification results in a new loan or a continuation of an existing loan. This ASU also enhances disclosures about loan modifications for borrowers who are experiencing financial difficulty. The guidance also requires public business entities to present gross write-offs by year of origination in their vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this ASU should be applied on a prospective basis; however, institutions have the option to apply a modified retrospective transition method as it relates to the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The ASU was adopted on January 1, 2023 without material impact on our business operations or to our consolidated financial statements.

In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”, which expanded the current last-of-layer method to allow multiple hedged layers of a single closed portfolio and allow hedge accounting to be achieved using different types of derivatives and layering techniques, including the use of amortizing swaps with clarification that such a trade would be viewed as being a single layer. Under this expanded scope, both prepayable and nonrepayable financial assets may be included in a single closed portfolio hedge. This update also provides clarifications to breach requirements and disclosures. As a result of these changes, the last-of-

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

(Unaudited)

layer method has been renamed the portfolio layer method. No cumulative-effect adjustment to the opening balance of retained earnings was required upon adoption of these amendments. The Company did not have any portfolio layer or last of layer hedges prior to the first quarter of 2023. The amendments related to disclosures were applied on a prospective basis. The ASU was adopted in the first quarter of 2023 – see Notes 4 (“Securities”), 5 (“Loans”) and 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements for more information regarding the impact to our consolidated financial statements.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

ITEM 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report should be read in conjunction with the more detailed and comprehensive disclosures included in our Annual Report on Form 10-K for the year ended December 31, 2022. In addition, please read this section in conjunction with our Consolidated Financial Statements and Notes to Consolidated Financial Statements contained herein.

As used in this Quarterly Report, the words “we,” “us,” “our” and the “Company” are used to refer to Flushing Financial Corporation and its direct and indirect wholly owned subsidiaries, Flushing Bank (the “Bank”), Flushing Service Corporation, and FSB Properties Inc.

Statements contained in this Quarterly Report relating to plans, strategies, objectives, 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 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, factors discussed elsewhere in this Quarterly Report and in other documents filed by us with the Securities and Exchange Commission from time to time, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2022. 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. We have no obligation to update these forward-looking statements.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

Executive Summary

We are a Delaware corporation organized in May 1994. The Bank was organized in 1929 as a New York State-chartered mutual savings bank. Today the Bank operates as a full-service New York State-chartered commercial bank. The Bank’s primary regulator is the New York State Department of Financial Services, and its primary federal regulator is the Federal Deposit Insurance Corporation (“FDIC”). Deposits are insured to the maximum allowable amount by the FDIC. Additionally, the Bank is a member of the Federal Home Loan Bank system. The primary business of Flushing Financial Corporation has been the operation of the Bank. At June 30, 2023, the Bank owns two subsidiaries: Flushing Service Corporation, and FSB Properties Inc. The Bank also operates an internet branch, which operates under the brands of iGObanking.com® and BankPurely® (the “Internet Branch”). The activities of Flushing Financial Corporation are primarily funded by dividends, if any, received from the Bank, issuances of subordinated debt, junior subordinated debt, and issuances of equity securities. Flushing Financial Corporation’s common stock is traded on the NASDAQ Global Select Market under the symbol “FFIC.”

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential loans, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family loans (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) Small Business Administration (“SBA”) loans and other small business loans; (3) construction loans; (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. Our results of operations depend primarily on net interest income, which is the difference between the income earned on our interest-earning assets and the cost of our interest-bearing liabilities. Net interest income is the result of our net interest rate margin, which is the difference between the average yield earned on interest-earning assets and the average cost of interest-bearing liabilities, adjusted for the difference in the average balance of interest-earning assets as compared to the average balance of interest-bearing liabilities. We also generate non-interest income primarily from loan fees, service charges on deposit accounts, and other fees, income earned on Bank Owned Life Insurance (“BOLI”), dividends on Federal Home Loan Bank of New York (“FHLB-NY”) stock and net gains and losses on sales of securities and loans. Our operating expenses consist principally of employee compensation and benefits, occupancy and equipment costs, other general and administrative expenses and income tax expense. Our results of operations can also be significantly affected by changes in the fair value of financial assets and financial liabilities for which changes in value are recorded through earnings and our periodic provision for credit losses.

Our investment policy, which is approved by the Board of Directors, is designed primarily to manage the interest rate sensitivity of our overall assets and liabilities, to generate a favorable return without incurring undue interest rate risk and credit risk, to complement our lending activities and to provide and maintain liquidity. In establishing our investment strategies, we consider our business and growth strategies, the economic environment, our interest rate risk exposure, our interest rate sensitivity “gap” position, the types of securities to be held and other factors. We classify our investment securities as available for sale or held-to-maturity.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

We carry a portion of our financial assets and financial liabilities under the fair value option and record changes in their fair value through earnings in non-interest income on our Consolidated Statements of Income and Comprehensive Income. A description of the financial assets and financial liabilities that are carried at fair value through earnings can be found in Note 10 (“Fair Value of Financial Instruments”) of the Notes to the Consolidated Financial Statements.

For the three months ended June 30, 2023 we reported net income of $8.6 million, or $0.29 per diluted common share, an increase of $3.5 million, or 67.3% from net income of $5.2 million, or $0.17 per diluted common share earned in the three months ended March 31, 2023. The increase in net income was primarily driven by a decrease in provision for loan losses of $6.1 million and a decrease in non-interest expense of $2.4 million, offset by lower net interest income and non-interest income of $1.9 million and $1.8 million, respectively.

During the three months ended June 30, 2023, the yield on interest-earning assets increased 23 basis points, while the cost of interest-bearing liabilities increased 35 basis points from the three months ended March 31, 2023, which resulted in a decrease of nine basis points in net interest margin to 2.18% from 2.27%. Excluding net gains (losses) from qualifying hedges and purchase accounting adjustments, the net interest margin decreased eight basis points to 2.17% for the three months ended June 30, 2023, from 2.25% for the three months ended March 31, 2023.

Our loan portfolio is greater than 88% collateralized by real estate with an average loan to value of less than 36%. We have a long history and foundation built upon disciplined underwriting, strong credit quality, and a resilient seasoned loan portfolio with solid asset protection. At June 30, 2023, our allowance for credit losses (“ACL”) - loans stood at 57 basis points of gross loans and 207.1% of non-performing loans. Non-performing assets at the end of the quarter were 47 basis points of total assets.

Goodwill is presumed to have an indefinite life and is tested for impairment, rather than amortized, on at least an annual basis. Quoted market prices in active markets are the best evidence of fair value and are to be used as the basis for measurement, when available. If the fair value of the reporting unit exceeds its carrying amount, there is no impairment of goodwill. At June 30, 2023, the book value of our reporting unit exceeded market capitalization, however the fair value of our reporting unit is not driven solely by the market price of our stock. For the purpose of goodwill impairment testing, management has concluded that the Company has one reporting unit. We performed our annual impairment tests of goodwill during the fourth quarter of 2022 using a quantitative assessment and concluded that the fair value of the reporting unit exceeded its carrying value. We performed the quantitative assessment again in the second quarter of 2023 and came to the same conclusion. We monitor goodwill for potential impairment triggers on a quarterly basis. Given the inherent uncertainties resulting from global macroeconomic conditions, actual results may differ from management’s current estimates and could have an adverse impact on one or more of the assumptions used in our quantitative model prepared for the reporting unit, which could result in impairment charges in subsequent periods.

The Bank and Company remain well-capitalized under current capital regulations of the FDIC and the Federal Reserve Board, respectively, and are subject to the similar regulatory capital requirements. See Note 13 (“Regulatory Capital”) of the Notes to the Consolidated Financial Statements.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table presents quarterly operating data highlights for the periods indicated:

	For the three months ended
	June 30,
	2023		2022
	(In thousands except per share data)
Quarterly operating data:
Interest income	$	96,561	$	74,291
Interest expense		53,183		9,561
Net interest income		43,378		64,730
Provision for credit losses		1,416		1,590
Noninterest income		5,122		7,353
Noninterest expense		35,279		35,522
Income before income tax expense		11,805		34,971
Income tax expense		3,177		9,936
Net income	$	8,628	$	25,035
Basic earnings per common share	$	0.29	$	0.81
Dividends per common share		0.29		0.81
Average diluted shares		30,090		30,937

COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022

General. Net income for the three months ended June 30, 2023 was $8.6 million, a decrease of $16.4 million, or 65.5%, from $25.0 million for the three months ended June 30, 2022. Diluted earnings per common share were $0.29 for the three months ended June 30, 2023, a decrease of $0.52 or 64.2%, from $0.81 for the three months ended June 30, 2022. The decrease in net income was primarily due to a decline in the net interest margin which decreased 117 basis points to 2.18% for the three months ended June 30, 2023 from 3.35% for the comparable prior year period. The decline in the net interest margin was driven by the impact Federal Reserve rate increases had on our liability sensitive balance sheet as our interest-bearing liabilities repriced quicker than our interest-earning assets. To mitigate the sensitivity and ease net interest margin compression, the Company opportunistically sought out derivative swaps to align with our strategic business plan.

Return on average equity was 5.12% for the three months ended June 30, 2023 compared to 15.00% for the three months ended June 30, 2022. Return on average assets was 0.41% for the three months ended June 30, 2023 compared to 1.22% for the three months ended June 30, 2022.

Interest Income. Interest and dividend income increased $22.3 million, or 30.0%, to $96.6 million for the three months ended June 30, 2023 from $74.3 million for the three months ended June 30, 2022. The increase in interest income was primarily attributable to the 99 basis point increase in the yield on interest-earning assets to 4.84% for the three months ended June 30, 2023 compared to 3.85% for the three month ended June 30, 2022. In addition, the average balance of total interest-earning assets increased $245.3 million from the comparable prior year period. Excluding prepayment penalty income from loans, net recoveries/reversals of interest from non-accrual loans, net gains (losses) from fair value adjustments on qualifying hedges, and purchase accounting adjustments, the yield on total interest-earning assets increased 111 basis points to 4.82% for the three months ended June 30, 2023 from 3.71% for the three months ended June 30, 2022.

Interest Expense. Interest expense increased $43.6 million, or 456.2%, to $53.2 million for the three months ended June 30, 2023 from $9.6 million for the three months ended June 30, 2022. The growth in interest expense was primarily due to an increase of 255 basis points in the average cost of interest-bearing liabilities to 3.15% for the three months ended June 30, 2023 from 0.60% for the three months ended June 30, 2022 and the increase of $419.5 million in the average balance of interest-bearing liabilities to $6,756.9 million for the three months ended June 30, 2023 from $6,337.4 million for the comparable prior year period. Rising rates have driven the increase in our cost of funds as the Federal Reserve increased rates 350 basis points between June 30, 2022 and June 30, 2023.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

Net Interest Income. Net interest income for the three months ended June 30, 2023 was $43.4 million, a decrease of $21.4 million, or 33.0%, from $64.7 million for the three months ended June 30, 2022. The decrease in net interest income was driven by the net interest margin decreasing 117 basis points to 2.18% for the three months ended June 30, 2023 from 3.35% for the three months ended June 30, 2022. In addition, net interest income was negatively impacted by a decline in net interest-earning assets totaling $174.1 million to $1,229.2 million for the quarter ended June 30, 2023. The decrease in net interest-earning assets was primarily due to the average balance of non-interest-bearing deposits declining $194.9 million to $849.7 million for the three months ended June 30, 2023 compared to $1,044.6 million for the three months ended June 30, 2022.  Included in net interest income for the three months ended June 30, 2023 and 2022, was prepayment penalty income, net reversals and recovered interest from non-accrual loans totaling $0.3 million and $2.3 million, respectively, net losses from fair value adjustments on qualifying hedges totaling $0.2 million and $0.1 million, respectively, and purchase accounting income adjustments of $0.3 million and $0.4 million, respectively. Excluding all of these items, the net interest margin for the three months ended June 30, 2023 was 2.15%, a decrease of 107 basis points, from 3.22% for the three months ended June 30, 2022.

Provision for Credit Losses. During the three months ended June 30, 2023, the provision for credit losses was $1.4 million compared to $1.6 million for the three months ended June 30, 2022. The provision recorded during the three months ended June 30, 2023 was primarily due to increased reserves from the elevated risk presented by the current rate environment to adjustable-rate loan's debt coverage ratios, partially offset by a decline in loan balances during the period. The current average loan-to-value ratio for our non-performing assets collateralized by real estate was 50.0% at June 30, 2023. The Bank continues to maintain conservative underwriting standards.

Non-Interest Income. Non-interest income for the three months ended June 30, 2023 was $5.1 million, a decrease of $2.2 million, or 30.3% from $7.4 million in the prior year comparable period. The decrease was primarily due to the prior year period inclusion of net gains from fair value adjustments totaling $2.5 million compared to net gains totaling $0.3 million recorded during the current year period.

Non-Interest Expense. Non-interest expense for the three months ended June 30, 2023 was $35.3 million, a decrease of $0.2 million, or 0.7%, from $35.5 million for the three months ended June 30, 2022. The decrease was primarily due to lower salary related expense accruals, and a $2.2 million net benefit for Employee Retention Tax Credit refunds partially offset by higher other operating expenses.

Income before Income Taxes. Income before income taxes for the three months ended June 30, 2023 was $11.8 million, a decrease of $23.2 million, or 66.2%, from $35.0 million for the three months ended June 30, 2022 for the reasons discussed above.

Provision for Income Taxes. The provision for income taxes was $3.2 million for the three months ended June 30, 2023, a decrease of $6.8 million, or 68.0%, from $9.9 million for the three months ended June 30, 2022. The decrease was primarily due to the decline in income before income taxes and a decrease in the effective tax rate. The effective tax rate for the three months ended June 30, 2023 was 26.9% compared to 28.4% for the three months ended June 30, 2022.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table presents operating data highlights for the periods indicated:

	For the six months ended
	June 30,
	2023		2022
	(In thousands except per share data)
Operating data:
Interest income	$	188,678	$	145,611
Interest expense		100,038		17,402
Net interest income		88,640		128,209
Provision for credit losses		8,924		2,948
Noninterest income		12,030		8,666
Noninterest expense		72,982		74,316
Income before income tax expense		18,764		59,611
Income tax expense		4,978		16,357
Net income	$	13,786	$	43,254
Basic earnings per common share	$	0.46	$	1.39
Dividends per common share		0.46		1.39
Average diluted shares		30,177		31,095

COMPARISON OF OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

General. Net income for the six months ended June 30, 2023 was $13.8 million, a decrease of $29.5 million, or 68.1%, from $43.3 million for the six months ended June 30, 2022. Diluted earnings per common share were $0.46 for the six months ended June 30, 2023, a decrease of $0.93 or 66.9%, from $1.39 for the six months ended June 30, 2022. The decrease in net income was primarily due to a decline in the net interest margin which decreased 114 basis points to 2.22% for the six months ended June 30, 2023 from 3.36% for the comparable prior year period. The decline in the net interest margin was driven by the impact Federal Reserve rate increases had on our liability sensitive balance sheet as our interest-bearing liabilities repriced quicker than our interest-earning assets. To mitigate the sensitivity and ease net interest margin compression, the Company opportunistically sought out derivative swaps to align with our strategic plans.

Return on average equity was 4.06% for the six months ended June 30, 2023 compared to 12.91% for the six months ended June 30, 2022. Return on average assets was 0.33% for the six months ended June 30, 2023 compared to 1.06% for the six months ended June 30, 2022.

Interest Income. Interest and dividend income increased $43.1 million, or 29.6%, to $188.7 million for the six months ended June 30, 2023 from $145.6 million for the six months ended June 30, 2022. The increase in interest income was primarily attributable to the 92 basis point increase in the yield on interest-earning assets to 4.73% for the six months ended June 30, 2023 compared to 3.81% for the comparable prior year period. In addition, the average balance of interest-earnings assets increased $335.3 million from the comparable prior year period. Excluding prepayment penalty income from loans, net recoveries/reversals of interest from non-accrual loans, net gains (losses) from fair value adjustments on qualifying hedges, and purchase accounting adjustments, the yield on total interest-earning assets, increased 102 basis points to 4.69% for the six months ended June 30, 2023 from 3.67% for the six months ended June 30, 2022.

Interest Expense. Interest expense increased $82.6 million, or 474.9%, to $100.0 million for the six months ended June 30, 2023 from $17.4 million for the six months ended June 30, 2022. The growth in interest expense was primarily due to an increase of 242 basis points in the average cost of interest-bearing liabilities to 2.97% for the six months ended June 30, 2023 from 0.55% for the six months ended June 30, 2022 and an increase of $451.1 million in the average balance of interest-bearing liabilities to $6,730.4 million for the six months ended June 30, 2023 from $6,279.3 million for the comparable prior year period. Rising rates have driven the increase in our cost of funds as the Federal Reserve increased rates by 350 basis points between June 30, 2022 and June 30, 2023.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

Net Interest Income. Net interest income for the six months ended June 30, 2023 was $88.6 million, a decrease of $39.6 million, or 30.9%, from $128.2 million for the six months ended June 30, 2022. The decrease in net interest income was driven by the net interest margin decreasing 114 basis points to 2.22% for the six months ended June 30, 2023 from 3.36% for the six months ended June 30, 2022. In addition, net interest income was negatively impacted by a decline in net interest-earning assets totaling $115.8 million to $1,261.0 million for the six months ended June 30, 2023. The decrease in net interest-earning assets was primarily due to the average balance of non-interest-bearing deposits declining $150.2 million to $872.9 million for the six months ended June 30, 2023 compared to $1,023.2 million for the six months ended June 30, 2022. Included in net interest income for the six months ended June 30, 2023 and 2022, was prepayment penalty income, net reversals and recovered interest from non-accrual loans totaling $1.0 million and $4.0 million, respectively, net losses from fair value adjustments on qualifying hedges totaling $0.1 million and $0.2 million, respectively, and purchase accounting income of $0.6 million and $1.4 million, respectively. Excluding all of these items, the net interest margin for the six months ended June 30, 2023 was 2.18%, a decrease of 104 basis points, from 3.22% for the six months ended June 30, 2022.

Provision for Credit Losses. During the six months ended June 30, 2023, the provision for credit losses was $8.9 million compared to $2.9 million for the six months ended June 30, 2022. The provision recorded during the six months ended June 30, 2023 was primarily due to fully reserving for two non-accrual business loans that were subsequently charged-off in the first quarter of 2023, and increasing reserves for the elevated risk presented by the current rate environment to adjustable-rate loan’s debt coverage ratios, partially offset by a decline in loan balances during the period. The current average loan-to-value ratio for our non-performing assets collateralized by real estate was 50.0% at June 30, 2023. The Bank continues to maintain conservative underwriting standards.

Non-Interest Income. Non-interest income for the six months ended June 30, 2023 was $12.0 million, an increase of $3.4 million, or 38.8% from $8.7 million in the prior year comparable period. The increase was primarily due to net gains from fair value adjustments totaling $2.9 million in the current period compared to $0.7 million recorded during the prior year period.

Non-Interest Expense. Non-interest expense for the six months ended June 30, 2023 was $73.0 million, a decrease of $1.3 million, or 1.8%, from $74.3 million for the six months ended June 30, 2022. The decrease was primarily due to lower salary related expense accruals, a $3.7 million net benefit for Employee Retention Tax Credit refunds and the effects of the decreased stock price on the attendant benefits plans.

Income before Income Taxes. Income before income taxes for the six months ended June 30, 2023 was $18.8 million, a decrease of $40.8 million, or 68.5%, from $59.6 million for the six months ended June 30, 2022 for the previously discussed reasons.

Provision for Income Taxes. The provision for income taxes was $5.0 million for the six months ended June 30, 2023,

a decrease of $11.4 million, or 69.6%, from $16.4 million for the six months ended June 30, 2022. The decrease was

primarily due to the decline in income before income taxes, and a decrease in the effective tax rate. The effective tax rate for six months ended June 30, 2023 was 26.5% compared to 27.4% for the six months ended June 30, 2022.

FINANCIAL CONDITION

Assets. Total assets at June 30, 2023 were $8,473.9 million, an increase of $50.9 million, or 0.6%, from $8,422.9 million at December 31, 2022. Total net loans decreased $100.5 million, or 1.5%, during the six months ended June 30, 2023, to $6,793.8 million from $6,894.3 million at December 31, 2022. Loan originations and purchases were $332.3 million for the six months ended June 30, 2023, a decrease of $500.8 million, or 60.1%, from $833.1 million for the six months ended June 30, 2022. The decreased loan originations were a result of interest rate increases over the past year as customers adapt to the increased rate environment. We continue to focus on the origination of multi-family residential, commercial real estate and commercial business loans with a full banking relationship. The loan pipeline was $415.5 million at June 30, 2023, compared to $252.2 million at December 31, 2022.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table shows loan originations and purchases for the periods indicated:

	For the three months				For the six months
	ended June 30,				ended June 30,
(In thousands)	2023		2022		2023		2022
Multi-family residential	$	31,901	$	136,902	$	74,065	$	235,082
Commercial real estate		38,523		164,826		54,093		209,928
One-to-four family – mixed-use property		5,812		12,228		10,750		20,726
One-to-four family – residential		63		4,211		4,359		13,472
Construction (1)		8,811		8,319		19,403		17,121
Small Business Administration		820		2,750		1,138		2,750
Commercial business and other (2)		72,850		174,551		168,518		334,027
Total	$	158,780	$	503,787	$	332,326	$	833,106

(1) Includes purchases of $0.9 million for the three months ended June 30, 2022. Includes purchases of $0.1 million and $1.6 million for the six months ended June 30, 2023 and 2022, respectively.

(2) Includes purchases of $39.6 million and $55.8 million for the three months ended June 30, 2023 and 2022, respectively.  Includes purchases of $83.9 million and $109.4 million for the six months ended June 30, 2023 and 2022, respectively.

The Bank maintains its 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%. Multi-family residential (excluding underlying co-operative mortgages), commercial real estate and one-to-four family mixed-use property mortgage loans originated and purchased during the six months ended June 30, 2023 had an average loan-to-value ratio of 48.6% and an average debt coverage ratio of 161.0%.

The Bank’s non-performing assets totaled $39.6 million at June 30, 2023, a decrease of $13.7 million, or 25.8% from December 31, 2022. Total non-performing assets as a percentage of total assets were 0.47% at June 30, 2023 and 0.63% at December 31, 2022. The ratio of ACL – loans to total non-performing loans was 207.1% at June 30, 2023 and 124.9% at December 31, 2022.

During the six months ended June 30, 2023 mortgage-backed securities decreased $18.4 million, or 4.7%, to $373.8 million from $392.2 million at December 31, 2022. The decrease in mortgage-backed securities during the six months ended June 30, 2023 was primarily due to the principal repayment of securities totaling $18.4 million.

During the six months ended June 30, 2023, other securities increased $152.2 million, or 36.5%, to $569.1 million from $416.9 million at December 31, 2022. The increase in other securities during the six months ended June 30, 2023, was primarily due to purchases of $171.7 million at an average rate of 6.55% partially offset by maturities totaling $10.0 million and a decrease in the fair value totaling $6.6 million. At June 30, 2023, other securities primarily consisted of securities issued by mutual or bond funds that invest in government and government agency securities, municipal bonds, corporate bonds, and CLOs.

Liabilities. Total liabilities were $7,802.6 million at June 30, 2023, an increase of $56.8 million, or 0.7%, from $7,745.8 million at December 31, 2022. During the six months ended June 30, 2023, due to depositors increased $228.7 million, or 3.6%, to $6,665.9 million due an increase of certificates of deposit totaling $706.4 million partially offset by a net decrease in all other deposit accounts totaling $468.0 million. The Company has based deposit growth on certificates of deposit as they extend liabilities thus reducing interest rate risk. Included in deposits were brokered deposits totaling $1,034.2 million, an increase of $177.9 million from $856.3 million at December 31, 2022. Borrowed funds decreased $195.6 million during the six months ended June 30, 2023.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

Total deposits at June 30, 2023 and December 31, 2022 and the weighted average rate on deposits at June 30, 2023 and December 31, 2022, are as follows:

					Weighted		Weighted
					Average		Average
	June 30,		December 31,		Rate		Rate
	2023		2022		2023 (1)		2022 (1)
Interest-bearing deposits:	(Dollars in thousands)
Certificate of deposit accounts	$	2,232,696	$	1,526,338	4.14	%	3.03	%
Savings accounts		118,886		143,641	0.45		0.21
Money market accounts		1,594,637		2,099,776	3.41		2.47
NOW accounts		1,891,834		1,746,190	3.23		2.14
Total interest-bearing deposits		5,838,053		5,515,945
Non-interest bearing demand deposits		827,820		921,238
Total due to depositors		6,665,873		6,437,183
Mortgagors' escrow deposits		57,817		48,159
Total deposits	$	6,723,690	$	6,485,342

(1) The weighted average rate does not reflect the benefit of interest rate swaps.

Equity. Total stockholders’ equity decreased $5.9 million, or 0.9%, to $671.3 million at June 30, 2023, from $677.2 million at December 31, 2022. Stockholders’ equity decreased due to the declaration and payment of dividends on the Company’s common stock of $0.44 per common share totaling $13.3 million and 688,331 shares repurchased totaling $9.9 million. These decreases were partially offset by net income of $13.8 million and a decrease of $0.5 million in accumulated other comprehensive loss. Book value per common share increased to $23.18 at June 30, 2023 compared to $22.97 at December 31, 2022.

Liquidity. Liquidity is the ability to economically meet current and future financial obligations. The Company’s primary objectives in terms of managing liquidity are to maintain the ability to originate and purchase loans, repay borrowings as they mature, satisfy financial obligations that arise in the normal course of business and meet our customer’s deposit withdrawal needs. Our primary sources of funds are deposits, borrowings, principal and interest payments on loans, mortgage-backed and other securities, and proceeds from sales of securities and loans. Deposit flows and mortgage prepayments, however, are greatly influenced by general interest rates, economic conditions, and competition. The Company has other sources of liquidity, including unsecured overnight lines of credit, and other types of borrowings. At June 30, 2023, the Company had available liquidity totaling $3.7 billion.

Liquidity management is both a short and long-term function of business management. During 2023, funds were provided by the Company’s operating and financing activities, which were used to fund our investing activities. Our most liquid assets are cash and cash equivalents, which include cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less. The level of these assets is dependent on our operating, financing, lending, and investing activities during any given period. At June 30, 2023, cash and cash equivalents totaled $160.1 million, an increase of $8.3 million, from $151.8 million, at December 31, 2022. A portion of our cash and cash equivalents is restricted cash held as collateral for interest rate swaps. At June 30, 2023 and December 31, 2022, restricted cash totaled $75.2 million and $67.0 million, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table presents the Company’s available liquidity by source at the period indicated below:

		At June 30, 2023
		Total		Amount		Net
		Available		Used		Availability
Internal Sources:		(In millions)
Free Securities	$	656.8	$	—	$	656.8
Interest Earnings Deposits		41.1		—		41.1
External Sources:
Federal Home Loan Bank		3,815.4		1,987.7		1,827.7
Other Banks		1,208.0		35.0		1,173.0
Total Liquidity	$	5,721.3	$	2,022.7	$	3,698.6

INTEREST RATE RISK

Economic Value of Equity Analysis. The Consolidated Statements of Financial Position have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), which require the measurement of financial position and operating results in terms of historical dollars without considering the changes in fair value of certain investments due to changes in interest rates. Generally, the fair value of financial investments such as loans and securities fluctuate inversely with changes in interest rates. As a result, increases in interest rates could result in decreases in the fair value of the Company’s interest-earning assets which could adversely affect the Company’s results of operations if such assets were sold, or, in the case of securities classified as available for sale, decreases in the Company’s stockholders’ equity, if such securities were retained.

The Company quantifies the net portfolio value should interest rates immediately go up or down 100 or 200 basis points, assuming the yield curves of the rate shocks will be parallel to each other.  Net portfolio value is defined as the market value of assets net of the market value of liabilities. The market value of assets and liabilities is determined using a discounted cash flow calculation. The net portfolio value ratio is the ratio of the net portfolio value to the market value of assets. The changes in value are measured as percentage changes from the net portfolio value at the base interest rate scenario. The base interest rate scenario assumes interest rates at June 30, 2023. Various estimates regarding prepayment assumptions are made at each level of rate shock. At June 30, 2023, the Company was within the guidelines set forth by the Board of Directors for each interest rate level.

The following table presents the change in the Company’s net portfolio value and the net portfolio value ratio as of June 30, 2023:

	Projected Percentage Change In
Change in Interest Rate		Net Portfolio Value (NPV)		Net Portfolio Value Ratio
-200 Basis points		(4.1)	%	10.0	%
-100 Basis points		(1.7)		10.4
Base interest rate		-		10.8
+100 Basis points		(2.3)		10.7
+200 Basis points		(4.5)		10.6

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

Income Simulation Analysis. The Company manages the mix of interest-earning assets and interest-bearing liabilities on a continuous basis to maximize return and adjust its exposure to interest rate risk. On a quarterly basis, management provides a report for review by the Asset-Liability Investment Committee (“ALCO”) of the Board of Directors. This report quantifies the potential changes in net interest income through various interest rate scenarios.

The starting point for the net interest income simulation is an estimate of the next twelve months’ net interest income assuming that both interest rates and the Company’s interest-sensitive assets and liabilities remain at period-end levels.

The report quantifies the potential changes in net interest income should interest rates go up or down 100 or 200 basis points (shocked), assuming the yield curves of the rate shocks will be parallel to each other. All changes in income are measured as percentage changes from the projected net interest income at the base interest rate scenario. The base interest rate scenario assumes interest rates at June 30, 2023 and 2022. Various estimates regarding prepayment assumptions are made at each level of rate shock. However, prepayment penalty income is excluded from this analysis. Actual results could differ significantly from these estimates.

The following table presents the Company’s interest rate shock as of June 30, 2023 and 2022:

	Projected Percentage Change In Net Interest Income
	June 30,
	2023		2022
-200 Basis points	(0.1)	%	NA	%
-100 Basis points	0.5		5.1
Base interest rate	-		-
+100 Basis points	(3.2)		(8.8)
+200 Basis points	(6.7)		(17.5)

Another net interest income simulation assumes that changes in interest rates change gradually in equal increments over the twelve-month period. Prepayment penalty income is also excluded from this analysis. Based on these assumptions, net interest income would be reduced by 2.2% from a 100 basis point increase in rates over the next twelve months. Actual results could differ significantly from these estimates.

At June 30, 2023, the Company had a derivative portfolio with a notional value totaling $2.0 billion. This portfolio is designed to move the Company more towards interest rate neutral from changes in interest rates. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements. The significant improvement in the rate sensitivity over the past year is primarily due to an increase in the use of interest rate hedges.

A portion of this portfolio is comprised of interest rate swaps on certain short-term advances and deposits totaling $922.5 million. At June 30, 2023, $872.5 million of the interest rate swaps are effective swaps at a weighted average rate of approximately 2.38% that mature through 2027 and $50.0 million of the interest rate swaps are forward swaps effective in 2024, at an average rate of 0.80%. The Company also has $200.0 million of portfolio layer pay fixed fair value swaps as a hedge for securities with a weighted average receive rate of 5.09% and $400.0 million of pay fixed fair value swaps as a hedge for the loan portfolio with a weighted average receive rate of 5.17%..

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

AVERAGE BALANCES

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the relative amount of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them. The following tables sets forth certain information relating to the Company’s Consolidated Statements of Financial Condition and Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022, and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods shown. Average balances are derived from average daily balances. The yields include amortization of fees which are considered adjustments to yields.

	For the three months ended June 30,
	2023						2022
	Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost
Assets	(Dollars in thousands)
Interest-earning assets:
Mortgage loans, net	$	5,308,567	$	63,688	4.80	%	$	5,178,029	$	54,775	4.23	%
Other loans, net		1,521,081		21,689	5.70			1,462,302		14,417	3.94
Total loans, net (1) (2)		6,829,648		85,377	5.00			6,640,331		69,192	4.17
Taxable securities:
Mortgage-backed securities		448,620		2,976	2.65			594,923		2,356	1.58
Other securities		471,600		5,847	4.96			333,158		2,090	2.51
Total taxable securities		920,220		8,823	3.84			928,081		4,446	1.92
Tax-exempt securities: (3)
Other securities		66,632		480	2.88			67,315		625	3.71
Total tax-exempt securities		66,632		480	2.88			67,315		625	3.71
Interest-earning deposits and federal funds sold		169,520		1,982	4.68			104,956		159	0.61
Total interest-earning assets (3)		7,986,020		96,662	4.84			7,740,683		74,422	3.85
Other assets		475,807						471,080
Total assets	$	8,461,827					$	8,211,763
Liabilities and Equity
Interest-bearing liabilities
Deposits:
Savings accounts	$	124,041		140	0.45		$	156,785		50	0.13
NOW accounts		2,026,950		16,152	3.19			2,089,851		1,405	0.27
Money market accounts		1,754,574		14,625	3.33			2,231,743		1,952	0.35
Certificate of deposit accounts		2,046,960		15,281	2.99			820,476		1,273	0.62
Total due to depositors		5,952,525		46,198	3.10			5,298,855		4,680	0.35
Mortgagors' escrow accounts		97,410		51	0.21			97,496		6	0.02
Total deposits		6,049,935		46,249	3.06			5,396,351		4,686	0.35
Borrowed funds		706,924		6,934	3.92			941,023		4,875	2.07
Total interest-bearing liabilities		6,756,859		53,183	3.15			6,337,374		9,561	0.60
Non-interest-bearing deposits		849,682						1,044,553
Other liabilities		181,343						162,380
Total liabilities		7,787,884						7,544,307
Equity		673,943						667,456
Total liabilities and equity	$	8,461,827					$	8,211,763
Net interest income / net interest rate spread (tax equivalent) (3)			$	43,479	1.69	%			$	64,861	3.25	%
Net interest-earning assets / net interest margin(tax equivalent) (3)	$	1,229,161			2.18	%	$	1,403,309			3.35	%
Ratio of interest-earning assets to interest-bearing liabilities					1.18	X					1.22	X

(1) Loan interest income includes loan fee income (expense) (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately ($0.1) million and $2.2 million for the three months ended June 30, 2023 and 2022, respectively.

(2) Loan interest income includes net gains (losses) from fair value adjustments on qualifying hedges of ($0.2) million and ($0.1) million for three months ended June 30, 2023 and 2022, respectively.

(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $0.1 million each for the three months ended June 30, 2023 and 2022.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

	For the six months ended June 30,
	2023						2022
	Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost
Assets	(Dollars in thousands)
Interest-earning assets:
Mortgage loans, net	$	5,320,852	$	125,742	4.73	%	$	5,165,121	$	108,745	4.21	%
Other loans, net		1,529,453		42,524	5.56			1,444,555		27,963	3.87
Total loans, net (1) (2)		6,850,305		168,266	4.91			6,609,676		136,708	4.14
Taxable securities:
Mortgage-backed securities		453,240		5,257	2.32			587,836		4,523	1.54
Other securities		441,827		10,458	4.73			280,245		3,209	2.29
Total taxable securities		895,067		15,715	3.51			868,081		7,732	1.78
Tax-exempt securities: (3)
Other securities		66,730		957	2.87			62,490		1,216	3.89
Total tax-exempt securities		66,730		957	2.87			62,490		1,216	3.89
Interest-earning deposits and federal funds sold		179,218		3,941	4.40			115,752		210	0.36
Total interest-earning assets (3)		7,991,320		188,879	4.73			7,655,999		145,866	3.81
Other assets		473,731						475,066
Total assets	$	8,465,051					$	8,131,065
Liabilities and Equity
Interest-bearing liabilities
Deposits:
Savings accounts	$	129,463		266	0.41		$	156,689		99	0.13
NOW accounts		1,998,909		29,937	3.00			2,063,529		2,198	0.21
Money market accounts		1,905,709		28,727	3.01			2,242,626		3,227	0.29
Certificate of deposit accounts		1,864,254		26,288	2.82			854,970		2,562	0.60
Total due to depositors		5,898,335		85,218	2.89			5,317,814		8,086	0.30
Mortgagors' escrow accounts		84,021		87	0.21			84,574		8	0.02
Total deposits		5,982,356		85,305	2.85			5,402,388		8,094	0.30
Borrowed funds		748,001		14,733	3.94			876,877		9,308	2.12
Total interest-bearing liabilities		6,730,357		100,038	2.97			6,279,265		17,402	0.55
Non-interest-bearing deposits		872,943						1,023,181
Other liabilities		183,270						158,400
Total liabilities		7,786,570						7,460,846
Equity		678,481						670,219
Total liabilities and equity	$	8,465,051					$	8,131,065
Net interest income / net interest rate spread (tax equivalent) (3)			$	88,841	1.76	%			$	128,464	3.26	%
Net interest-earning assets / net interest margin(tax equivalent) (3)	$	1,260,963			2.22	%	$	1,376,734			3.36	%
Ratio of interest-earning assets to interest-bearing liabilities					1.19	X					1.22	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 $0.1 million and $5.1 million for the six months ended June 30, 2023 and 2022, respectively.

(2) Loan interest income includes net gains (losses) from fair value adjustments on qualifying hedges of ($0.1) million and ($0.2) million for six months ended June 30, 2023 and 2022, respectively.

(3) Interest and yields are calculated on the tax equivalent basis using the statutory federal income tax rate of 21% for the periods presented totaling $0.2 million and $0.3 million for the six months ended June 30, 2023 and 2022, respectively.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

LOANS

The following table sets forth the Company’s loan originations (including the net effect of refinancing) and the changes in the Company’s portfolio of loans, including purchases, sales and principal reductions for the periods indicated.

	For the six months ended June 30,
(In thousands)	2023		2022
Mortgage Loans
At beginning of period	$	5,380,935	$	5,200,782
Mortgage loans originated:
Multi-family residential		74,065		235,082
Commercial real estate		54,093		209,928
One-to-four family mixed-use property		10,750		20,726
One-to-four family residential		4,359		13,472
Construction		19,274		15,498
Total mortgage loans originated		162,541		494,706
Mortgage loans purchased:
Construction		129		1,623
Total mortgage loans purchased		129		1,623
Less:
Principal reductions		195,627		398,297
Mortgage loan sales		6,506		18,342
Charge-Offs		20		—
At end of period	$	5,341,452	$	5,280,472
Non-mortgage loans
At beginning of period	$	1,544,823	$	1,433,084
Loans originated:
Small Business Administration		1,138		2,750
Commercial business		82,644		222,281
Other		1,963		2,341
Total other loans originated		85,745		227,372
Non-mortgage loans purchased:
Commercial business		83,911		109,405
Total non-mortgage loans purchased		83,911		109,405
Less:
Principal reductions (1)		214,709		297,813
Charge-offs (2)		11,008		59
At end of period	$	1,488,762	$	1,471,989

(1) Includes SBA PPP reductions totaling $1.2 million and $55.2 million for the six months ended June 30, 2023 and 2022, respectively.

(2) Does not include charge-offs totaling $1.0 million on the guaranteed portion of SBA receivables deemed uncollectible during the six months ended June 30, 2022.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

TROUBLED DEBT RESTRUCTURED (“TDR”) AND NON-PERFORMING ASSETS

On January 1, 2023, the Company adopted ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” without material impact on the business operations or consolidated financial statements. See Note 14 (“New Authoritative Accounting Pronouncements”) of the Notes to the Consolidated Financial Statements.

The following table shows loans classified as TDR at amortized cost that are performing according to their restructured terms at the period indicated:

	December 31,
(In thousands)	2022
Accrual Status:
Multi-family residential	$	1,673
Commercial real estate		7,572
One-to-four family - mixed-use property		974
One-to-four family - residential		253
Commercial business and other		1,069
Total		11,541
Non-Accrual Status:
One-to-four family - mixed-use property		248
Commercial business and other		28
Total		276
Total performing troubled debt restructured	$	11,817

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table shows our non-performing assets at the periods indicated:

	June 30,			December 31,
(In thousands)	2023			2022
Loans 90 days or more past due and still accruing:
Construction	$	—		$	2,600
Total		—			2,600
Non-accrual loans:
Multi-family residential		3,206			3,206
Commercial real estate		—			237
One-to-four family - mixed-use property (1)		790			790
One-to-four family - residential		5,218			4,425
Small business administration		1,119			937
Commercial Business and other (1)		8,304			20,187
Total		18,637			29,782
Total non-performing loans		18,637			32,382
Other non-performing assets:
Held-to-maturity securities		20,981			20,981
Total		20,981			20,981
Total non-performing assets	$	39,618		$	53,363
Non-performing assets to total assets		0.47	%		0.63	%
ACL - loans to non-accrual loans		207.08	%		135.79	%
ACL - loans to non-performing assets		97.41	%		75.79	%

(1) Adopted ASU No. 2022-02 Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023; Not included in the above analysis are the following non-accrual TDRs that are performing according to their restructured terms: one-to-four family mixed-use property loans totaling $0.2 million at December 31, 2022, and commercial business loans totaling less than $0.1 million at December 31, 2022.  

CRITICIZED AND CLASSIFIED ASSETS

Our policy is to review our assets, focusing primarily on the loan portfolio, other real estate owned, and the investment portfolio, to ensure that credit quality is maintained at the highest levels. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements for a description of how loans are determined to be criticized or classified and a table displaying criticized and classified loans at June 30, 2023. The amortized cost of Criticized and Classified assets were $71.1 million at June 30, 2023, a decrease of $17.8 million from $88.9 million at December 31, 2022. The Company had one investment security with an amortized cost of $21.0 million classified as substandard at June 30, 2023 and December 31, 2022.

Included within net loans at June 30, 2023 and December 31, 2022, were $5.7 million and $5.2 million respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

ALLOWANCE FOR CREDIT LOSSES

The following table shows allowance for credit losses at the period indicated:

	For the six months ended June 30,
(In thousands)		2023		2022
Balance at beginning of period	$	40,442	$	37,135
Loans- charge-off		(11,029)		(1,086)
Loans- recovery		235		652
Loans- provision		8,945		2,723
Allowance for credit losses - loans	$	38,593	$	39,424
Balance at beginning of period	$	1,100	$	862
Held-to-maturity securities- (benefit) provision		(21)		223
Allowance for HTM securities losses	$	1,079	$	1,085
Balance at beginning of period	$	970	$	1,209
Off-balance sheet- (benefit) provision		(157)		235
Allowance for off-balance sheet losses	$	813	$	1,444
Allowance for credit losses	$	40,485	$	41,953

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Management’s Discussions and Analysis of

Financial Condition and Results of Operations

The following table sets forth the activity in the Company’s ACL - loans for the periods indicated:

	For the six months ended June 30,
(Dollars in thousands)	2023			2022
Balance at beginning of year	$	40,442		$	37,135
Provision for credit losses		8,945			2,723
Loans charged-off:
One-to-four family - residential		(12)			—
Commercial real estate		(8)			—
SBA		(7)			(1,054)
Commercial business and other loans		(11,002)			(32)
Total loans charged-off		(11,029)			(1,086)
Recoveries:
Multi-family residential		1			1
One-to-four family - residential		44			4
Small Business Administration		171			26
Taxi medallion		—			447
Commercial business and other		19			174
Total recoveries		235			652
Net charge-offs		(10,794)			(434)
Balance at end of year	$	38,593		$	39,424
Ratio of net charge-offs to average loans outstanding during the period		0.32	%		0.01	%
Ratio of ACL - loans to gross loans at end of period		0.57	%		0.58	%
Ratio of ACL - loans to non-performing loans at end of period		207.08	%		141.06	%

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PART I – FINANCIAL INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the qualitative and quantitative disclosures about market risk, see the information under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Interest Rate Risk."

ITEM 4.       CONTROLS AND PROCEDURES

The Company carried out, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2023, the design and operation of these disclosure controls and procedures were effective. During the period covered by this Quarterly Report, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

-65-

PART II – OTHER INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 1.       LEGAL PROCEEDINGS

The Company is a defendant in various lawsuits. Management of the Company, after consultation with outside legal counsel, believes that the resolution of these various matters will not result in any material adverse effect on the Company’s consolidated financial condition, results of operations and cash flows.

ITEM 1A.     RISK FACTORS

There have been no material changes from the risk factors disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2022, and quarterly report on Form 10-Q for the quarter ended March 31, 2023.

ITEM 2.       UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information regarding the shares of common stock repurchased by the Company during the three months ended June 30, 2023:

					Maximum
				Total Number of	Number of
	Total			Shares Purchased	Shares That May
	Number			as Part of Publicly	Yet Be Purchased
	of Shares	Average Price		Announced Plans	Under the Plans
Period	Purchased	Paid per Share		or Programs	or Programs
April 1 to April 30, 2023	—		—	—	434,946
May 1 to May 31, 2023	290,338		11.50	290,338	1,144,608
June 1 to June 30, 2023	238,477		14.68	238,477	906,131
Total	528,815	$	12.94	528,815

On May 30, 2023, the Board of Directors approved an additional one million shares of common stock for repurchase. During the quarter ended June 30, 2023, the Company repurchased 528,815 shares of the Company’s common stock. On June 30, 2023, 906,131 shares remained to be repurchased under the currently authorized stock repurchase programs. Stock will be purchased under the current stock repurchase programs from time to time, in the open market or through private transactions, subject to market conditions. There is no expiration or maximum dollar amount under these authorizations.

ITEM 3.       DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.        MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.       OTHER INFORMATION

None.

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PART II – OTHER INFORMATION

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

ITEM 6.       EXHIBITS

Exhibit No.	Description
3.1 P	Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488)
3.2	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 4.2 filed with Form S-8 filed May 31, 2002)
3.3	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.3 filed with Form 10-K for the year ended December 31, 2011)
3.4	Amended and Restated By-Laws of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.6 filed with Form 10-Q for the quarter ended June 30, 2014)
4.1	Indenture dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee. (Incorporated by reference to Exhibit 4.1 filed with Form 8-K filed November 22, 2021)
4.2	First Supplemental Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee. (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed November 22, 2021)
4.3	Second Supplemental Indenture, dated August 24, 2022, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed August 24, 2022)
4.4	Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation's total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (filed herewith)
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (filed herewith)
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Executive Officer (furnished herewith)
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Financial Officer (furnished herewith)
101.INS	Inline XBRL Instance Document -the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

P     Indicates a filing submitted in paper.

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FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

EXHIBIT INDEX

Exhibit No.	Description
3.1 P	Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488)
3.2	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 4.2 filed with Form S-8 filed May 31, 2002)
3.3	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.3 filed with Form 10-K for the year ended December 31, 2011)
3.4	Amended and Restated By-Laws of Flushing Financial Corporation (Incorporated by reference to Exhibit 3.6 filed with Form 10-Q for the quarter ended June 30, 2014)
4.1	Indenture dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee. (Incorporated by reference to Exhibit 4.1 filed with Form 8-K filed November 22, 2021)
4.2	First Supplemental Indenture, dated November 22, 2021, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee. (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed November 22, 2021)
4.3	Second Supplemental Indenture, dated August 24, 2022, between Flushing Financial Corporation and Wilmington Trust, National Association, as trustee (Incorporated by reference to Exhibit 4.2 filed with Form 8-K filed August 24, 2022)
4.4	Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation's total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (filed herewith)
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (filed herewith)
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Executive Officer (furnished herewith)
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 by the Chief Financial Officer (furnished herewith)
101.INS	Inline XBRL Instance Document -the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

P     Indicates a filing submitted in paper.

-68-

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Flushing Financial Corporation,
Dated:	August 9, 2023	By:	/s/John R. Buran
			John R. Buran
			President and Chief Executive Officer
Dated:	August 9, 2023	By:	/s/Susan K. Cullen
			Susan K. Cullen
			Senior Executive Vice President, Treasurer and
			Chief Financial Officer

-69-

EX-31.1

Exhibit 31.1

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John R. Buran, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   August 9, 2023	By:	/s/John R. Buran
		John R. Buran
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Susan K. Cullen, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Flushing Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:   August 9, 2023	By:	/s/Susan K. Cullen
		Susan K. Cullen
		Senior Executive Vice President, Treasurer and Chief
		Financial Officer

EX-32.1

Exhibit 32.1

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John R. Buran, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

By:	/s/John R. Buran
	John R. Buran
	Chief Executive Officer
	August 9, 2023

EX-32.2

Exhibit 32.2

FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Flushing Financial Corporation (the “Corporation”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Susan K. Cullen, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

By:	/s/Susan K. Cullen
	Susan K. Cullen
	Chief Financial Officer
	August 9, 2023

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Entity File Number	001-33013
Entity Registrant Name	FLUSHING FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3209278
Entity Address, Address Line One	220 RXR Plaza
Entity Address, City or Town	Uniondale
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11556
City Area Code	(718)
Local Phone Number	961-5400
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	FFIC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		28,963,936
Entity Central Index Key	0000923139
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 160,053	$ 151,754
Securities held-to-maturity:
Securities held-to-maturity, net of allowance of $1,079 and $1,100, respectively, (assets pledged of $4,565 and $4,550, respectively; fair value of $64,337 and $62,550, respectively)	73,334	73,711
Securities available for sale, at fair value:
Securities available for sale, at fair value: (assets pledged of $154.586 and $172,235, respectively; $13,059 and $13,023 at fair value pursuant to the fair value option, respectively)	869,556	735,357
Loans:
Loans, net of fees and costs	6,832,425	6,934,769
Less: Allowance for credit losses	38,593	40,442
Net loans	6,793,832	6,894,327
Interest and dividends receivable	52,911	45,048
Bank premises and equipment, net	22,182	21,750
Federal Home Loan Bank of New York stock, at cost	36,168	45,842
Bank owned life insurance	213,164	213,131
Goodwill	17,636	17,636
Core deposit intangibles	1,769	2,017
Right of use asset	41,526	43,289
Other assets	191,752	179,084
Total assets	8,473,883	8,422,946
Liabilities
Non-interest bearing	827,820	921,238
Interest-bearing	5,838,053	5,515,945
Total Due to depositors	6,665,873	6,437,183
Mortgagors' escrow deposits	57,817	48,159
Borrowed funds:
Federal Home Loan Bank advances and other borrowings	622,329	815,501
Subordinated debentures	187,294	186,965
Junior subordinated debentures, at fair value	47,777	50,507
Total borrowed funds	857,400	1,052,973
Operating lease liability	44,402	46,125
Other liabilities	177,088	161,349
Total liabilities	7,802,580	7,745,789
Stockholders' Equity
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)
Common stock ($0.01 par value; 100,000,000 shares authorized; 34,087,623 shares issued; 28,960,719 shares and 29,476,391 shares outstanding, respectively)	341	341
Additional paid-in capital	263,744	264,332
Treasury stock, at average cost (5,126,904 shares and 4,611,232 shares, respectively)	(104,574)	(98,535)
Retained earnings	547,811	547,507
Accumulated other comprehensive loss, net of taxes	(36,019)	(36,488)
Total stockholders' equity	671,303	677,157
Total liabilities and stockholders' equity	$ 8,473,883	$ 8,422,946

XML

Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Securities held-to-maturity, allowance for credit losses	$ 1,079	$ 1,100
Securities held-to-maturity, assets pledged	4,565	4,550
Securities held-to-maturity, fair value	64,337	62,550
Securities available for sale, pledged as collateral	154,586	172,235
Securities available for sale, fair value option	$ 13,059	$ 13,023
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	34,087,623	34,087,623
Common stock, shares outstanding (in shares)	28,960,719	29,476,391
Treasury stock, at average cost (in shares)	5,126,904	4,611,232

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest and dividend income
Interest and fees on loans	$ 85,377	$ 69,192	$ 168,266	$ 136,708
Interest and dividends on securities:
Interest	9,172	4,929	16,412	8,674
Dividends	30	11	59	19
Other interest income	1,982	159	3,941	210
Total interest and dividend income	96,561	74,291	188,678	145,611
Interest expense
Deposits	46,249	4,686	85,305	8,094
Other interest expense	6,934	4,875	14,733	9,308
Total interest expense	53,183	9,561	100,038	17,402
Net interest income	43,378	64,730	88,640	128,209
Provision for credit losses	1,416	1,590	8,924	2,948
Net interest income after provision for credit losses	41,962	63,140	79,716	125,261
Non-interest income
Banking services fee income	1,780	1,166	3,191	2,540
Net gain on sale of loans	54	73	108	73
Net gain from fair value adjustments	294	2,533	2,913	724
Federal Home Loan Bank of New York stock dividends	534	407	1,231	804
Life insurance proceeds	561	1,536	561	1,536
Bank owned life insurance	1,134	1,115	2,243	2,229
Other income	765	523	1,783	760
Total non-interest income	5,122	7,353	12,030	8,666
Non-interest expense
Salaries and employee benefits	19,493	21,109	40,380	44,758
Occupancy and equipment	3,534	3,760	7,327	7,364
Professional services	2,657	2,285	5,140	4,507
FDIC deposit insurance	943	615	1,920	1,035
Data processing	1,473	1,383	2,908	2,807
Depreciation and amortization of bank premises and equipment	1,482	1,447	2,992	2,907
Other real estate owned / foreclosure expense	150	32	315	116
Other operating expenses	5,547	4,891	12,000	10,822
Total non-interest expense	35,279	35,522	72,982	74,316
Income before income taxes	11,805	34,971	18,764	59,611
Provision for income taxes
Federal	2,194	5,609	3,561	10,259
State and local	983	4,327	1,417	6,098
Total provision for income taxes	3,177	9,936	4,978	16,357
Net income	$ 8,628	$ 25,035	$ 13,786	$ 43,254
Basic earnings per common share	$ 0.29	$ 0.81	$ 0.46	$ 1.39
Diluted earnings per common share	0.29	0.81	0.46	1.39
Dividends per common share	$ 0.22	$ 0.22	$ 0.44	$ 0.44

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 8,628	$ 25,035	$ 13,786	$ 43,254
Other comprehensive income (loss), net of tax:
Amortization of actuarial gains, net of taxes of $31 and ($5), respectively, and of $62 and ($3), respectively.	(69)	(11)	(138)	(15)
Amortization of prior service credits, net of taxes of ($4) and ($2) for the three and six months ended June 30, 2022, respectively.		(11)		(16)
Change in net unrealized gains on securities, net of taxes of $1,977 and $8,767, respectively, and of $93 and $19,659, respectively.	(4,404)	(20,434)	(417)	(43,861)
Net unrealized gains on cashflow hedges, net of taxes of ($2,836) and ($2,018), respectively, and of ($492) and ($8,876), respectively.	6,319	4,915	1,179	19,666
Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of $36 and $142, respectively, and of $69 and $205, respectively.	(81)	(219)	(155)	(354)
Other comprehensive income (loss), net of tax:	1,765	(15,760)	469	(24,580)
Comprehensive net income	$ 10,393	$ 9,275	$ 14,255	$ 18,674

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Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Amortization of actuarial (gains) losses, taxes	$ 31	$ (5)	$ 62	$ (3)
Amortization of prior service credits, taxes		(4)		(2)
Net unrealized gains (losses) on securities, taxes	1,977	8,767	93	19,659
Net unrealized gains (losses) on cash flow hedges, taxes	(2,836)	(2,018)	(492)	(8,876)
Change in fair value of liabilities related to instrument-specific credit risk, taxes	$ 36	$ 142	$ 69	$ 205

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities
Net income	$ 13,786	$ 43,254
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	8,924	2,948
Depreciation and amortization of premises and equipment	2,992	2,907
Net gain on sales of loans	(108)	(73)
Net amortization of premiums and discounts	1,876	568
Deferred income tax provision	3,139	3,191
Net gain from fair value adjustments	(2,913)	(724)
Net loss from fair value adjustments of qualifying hedges	105	129
Gain from life insurance proceeds	(561)	(1,536)
Income from bank owned life insurance	(2,243)	(2,229)
Stock-based compensation expense	4,706	5,255
Deferred compensation	(2,309)	(3,627)
Amortization of core deposit intangibles	248	280
(Increase) decrease in other assets	(15,971)	9,303
Decrease in other liabilities	(10,730)	(15,004)
Net cash provided by operating activities	941	44,642
Investing Activities
Purchases of premises and equipment	(3,424)	(1,854)
Purchases of Federal Home Loan Bank - NY shares	(79,799)	(41,058)
Redemptions of Federal Home Loan Bank - NY shares	89,473	26,978
Purchases of securities held-to-maturity	0	(16,476)
Proceeds from prepayments of securities held-to-maturity	395	0
Purchases of securities available for sale	(151,860)	(210,261)
Proceeds from maturities and prepayments of securities available for sale	31,292	64,227
Proceeds from life insurance	0	2,727
Change in cash collateral	6,910	34,365
Net repayments (originations) of loans	171,297	(69,676)
Purchases of loans	(84,040)	(111,028)
Proceeds from sale of loans	7,042	18,565
Net cash used in investing activities	(12,714)	(303,491)
Financing Activities
Net (decrease) increase in noninterest-bearing deposits	(93,418)	113,587
Net increase (decrease) in interest-bearing deposits	321,819	(47,067)
Net increase in mortgagors' escrow deposits	9,658	5,664
Net (repayments) proceeds from short-term borrowed funds	(316,200)	325,000
Proceeds from long-term borrowing	162,029	0
Repayment of long-term borrowings	(39,001)	(50,000)
Purchase of treasury shares and repurchase of shares to satisfy tax obligations	(11,558)	(19,396)
Cash dividends paid	(13,257)	(13,636)
Net cash provided by financing activities	20,072	314,152
Net increase in cash and cash equivalents, and restricted cash	8,299	55,303
Cash, cash equivalents, and restricted cash, beginning of period	151,754	81,723
Cash, cash equivalents, and restricted cash, end of period	160,053	137,026
Supplemental Cash Flow Disclosure
Interest paid	96,476	16,612
Income taxes paid	6,082	16,215
Taxes paid if excess tax benefits on stock-based compensation were not tax deductible	6,084	16,385
Securities purchased not yet settled	$ 20,000	$ 0

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Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2021	$ 341	$ 263,375	$ (75,293)	$ 497,889	$ (6,684)	$ 679,628
Balance (in shares) at Dec. 31, 2021	30,526,353
Net income				18,219		18,219
Award of common shares released from Employee Benefit Trust		287				287
Vesting of restricted stock unit awards		(6,019)	6,304	(285)
Vesting of restricted stock unit awards (in shares)	297,626
Purchase of treasury shares			(8,469)			(8,469)
Purchase of treasury shares (in shares)	(360,000)
Stock-based compensation expense		4,194				4,194
Repurchase of shares to satisfy tax obligation			(2,376)			(2,376)
Repurchase of shares to satisfy tax obligation (in shares)	(97,435)
Dividends on common stock				(6,850)		(6,850)
Other comprehensive loss					(8,820)	(8,820)
Balance (in shares) at Mar. 31, 2022	30,366,544
Balance at Mar. 31, 2022	$ 341	261,837	(79,834)	508,973	(15,504)	675,813
Balance at Dec. 31, 2021	$ 341	263,375	(75,293)	497,889	(6,684)	679,628
Balance (in shares) at Dec. 31, 2021	30,526,353
Net income						43,254
Other comprehensive loss					(24,580)	(24,580)
Balance (in shares) at Jun. 30, 2022	29,980,104
Balance at Jun. 30, 2022	$ 341	262,860	(88,342)	527,217	(31,264)	670,812
Balance at Mar. 31, 2022	$ 341	261,837	(79,834)	508,973	(15,504)	675,813
Balance (in shares) at Mar. 31, 2022	30,366,544
Net income				25,035		25,035
Vesting of restricted stock unit awards		(38)	43	(5)
Vesting of restricted stock unit awards (in shares)	2,015
Purchase of treasury shares			(8,534)			(8,534)
Purchase of treasury shares (in shares)	(387,689)
Stock-based compensation expense		1,061				1,061
Repurchase of shares to satisfy tax obligation			(17)			(17)
Repurchase of shares to satisfy tax obligation (in shares)	(766)
Dividends on common stock				(6,786)		(6,786)
Other comprehensive loss					(15,760)	(15,760)
Balance (in shares) at Jun. 30, 2022	29,980,104
Balance at Jun. 30, 2022	$ 341	262,860	(88,342)	527,217	(31,264)	670,812
Balance at Dec. 31, 2022	$ 341	264,332	(98,535)	547,507	(36,488)	$ 677,157
Balance (in shares) at Dec. 31, 2022	29,476,391					29,476,391
Net income				5,158		$ 5,158
Vesting of restricted stock unit awards		(5,264)	5,484	(220)
Vesting of restricted stock unit awards (in shares)	256,798
Purchase of treasury shares			(3,053)			(3,053)
Purchase of treasury shares (in shares)	(159,516)
Stock-based compensation expense		3,808				3,808
Repurchase of shares to satisfy tax obligation			(1,656)			(1,656)
Repurchase of shares to satisfy tax obligation (in shares)	(85,217)
Dividends on common stock				(6,659)		(6,659)
Other comprehensive loss					(1,296)	(1,296)
Balance (in shares) at Mar. 31, 2023	29,488,456
Balance at Mar. 31, 2023	$ 341	262,876	(97,760)	545,786	(37,784)	673,459
Balance at Dec. 31, 2022	$ 341	264,332	(98,535)	547,507	(36,488)	$ 677,157
Balance (in shares) at Dec. 31, 2022	29,476,391					29,476,391
Net income						$ 13,786
Other comprehensive loss					469	$ 469
Balance (in shares) at Jun. 30, 2023	28,960,719					28,960,719
Balance at Jun. 30, 2023	$ 341	263,744	(104,574)	547,811	(36,019)	$ 671,303
Balance at Mar. 31, 2023	$ 341	262,876	(97,760)	545,786	(37,784)	673,459
Balance (in shares) at Mar. 31, 2023	29,488,456
Net income				8,628		8,628
Vesting of restricted stock unit awards		(30)	35	(5)
Vesting of restricted stock unit awards (in shares)	1,690
Purchase of treasury shares			(6,841)			(6,841)
Purchase of treasury shares (in shares)	(528,815)
Stock-based compensation expense		898				898
Repurchase of shares to satisfy tax obligation			(8)			(8)
Repurchase of shares to satisfy tax obligation (in shares)	(612)
Dividends on common stock				(6,598)		(6,598)
Other comprehensive loss					1,765	$ 1,765
Balance (in shares) at Jun. 30, 2023	28,960,719					28,960,719
Balance at Jun. 30, 2023	$ 341	$ 263,744	$ (104,574)	$ 547,811	$ (36,019)	$ 671,303

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Consolidated Statement of Changes in Stockholders' Equity (Parentheticals) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Dividends on common share (in dollars per share)	$ 0.22	$ 0.22	$ 0.22	$ 0.22

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Basis of Presentation

1.     Basis of Presentation

The primary business of Flushing Financial Corporation (the “Holding Company”), a Delaware corporation, is the operation of its wholly owned subsidiary, Flushing Bank (the “Bank”).

The unaudited consolidated financial statements presented in this Quarterly Report on Form 10-Q (“Quarterly Report”) include the collective results of the Holding Company and its direct and indirect wholly owned subsidiaries, including the Bank, Flushing Service Corporation and FSB Properties Inc., which are collectively herein referred to as “we,” “us,” “our” and the “Company.”

The Holding Company also owns Flushing Financial Capital Trust II, Flushing Financial Capital Trust III, and Flushing Financial Capital Trust IV (the “Trusts”), which are special purpose business trusts. The Trusts are not included in the Company’s consolidated financial statements, as the Company would not absorb the losses of the Trusts if any losses were to occur.

The accompanying unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for such presented periods of the Company. Such adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report. All inter-company balances and transactions have been eliminated in consolidation. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for the full year.

The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Quarterly Report on Form 10-Q and Article 10, Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited consolidated interim financial information should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

When necessary, certain reclassifications were made to prior-year amounts to conform to the current-year presentation. Such reclassifications had no effect on the prior period net income or shareholders’ equity and were insignificant amounts.

XML

Use of Estimates

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Use of Estimates

2.     Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for credit losses, the evaluation of goodwill for impairment, the review of the need for a valuation allowance of the Company’s deferred tax assets, and the fair value of financial instruments.

Goodwill represents the excess purchase price over the value assigned to tangible and identifiable intangible assets, and liabilities assumed of business acquired. Goodwill is presumed to have an indefinite life and is tested annually for impairment, or more frequently when certain conditions are met. If the fair value of the reporting unit is greater than the carrying value, no further evaluation is required. If the fair value of the reporting unit is less than the carrying value, further evaluation would be required to compare the fair value of the reporting unit to the carrying value and determine if impairment is required.

Quoted market prices in active markets are the best evidence of fair value and are to be used as the basis for measurement, when available. Other acceptable valuation methods include an asset approach, which determines a fair value based upon the value of assets net of liabilities, an income approach, which determines fair value using one or more methods that convert anticipated economic benefits into a present single amount, and a market approach, which determines a fair value based on the similar businesses that have been sold.

At June 30, 2023, the book value of our reporting unit exceeded market capitalization, however the fair value of our reporting unit is not driven solely by the market price of our stock. As described above, the fair value can also be derived using an asset approach, an income approach and a market approach, or a combination of these techniques. At June 30, 2023, the Company used an income approach and a market approach to determine the fair value of the reporting unit. These valuation techniques consider several other factors beyond our market capitalization, such as the estimated future cash flows of our reporting unit, the discount rate used to present value such cash flows and the market multiples of comparable companies. Changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment. We qualitatively assess whether the carrying value of our reporting unit exceeds fair value. If this qualitative assessment determines that it is more likely than not that the carrying value of our reporting unit exceeds fair value, further quantitative evaluation for impairment would be required to compare the fair value of the reporting unit to the carrying value and determine if impairment is required.

In performing the goodwill impairment testing, the Company has identified a single reporting unit. The Company performed a quantitative assessment in reviewing the carrying value of goodwill as of December 31, 2022, which was repeated in the second quarter of 2023, concluding that there was no goodwill impairment at June 30, 2023. At June 30, 2023 and December 31, 2022, the carrying amount of goodwill totaled $17.6 million at each period. The identification of additional reporting units, the use of other valuation techniques and/or changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment.

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Earnings Per Share

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Earnings Per Share

3.     Earnings Per Share

Earnings per common share have been computed based on the following:

	For the three months ended						For the six months ended
	June 30,						June 30,
	2023			2022			2023			2022
	(Dollars in thousands, except per share data)
Net income, as reported	$	8,628		$	25,035		$	13,786		$	43,254
Divided by:
Weighted average common shares outstanding (1)		30,090			30,937			30,177			31,095
Basic earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Diluted earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Dividend Payout ratio		75.9	%		27.2	%		95.7	%		31.7	%

(1) For the three and six months ended June 30, 2023, and 2022, there were no common stock equivalents that were anti-dilutive.

XML

Securities

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Securities

4.     Securities

The following table summarizes the Company’s portfolio of securities held-to-maturity on June 30, 2023:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,548	$	57,326	$	—	$	9,222
Total municipals		66,548		57,326		—		9,222
FNMA		7,865		7,011		—		854
Total mortgage-backed securities		7,865		7,011		—		854
Allowance for credit losses		(1,079)		—		—		—
Total	$	73,334	$	64,337	$	—	$	10,076

The following table summarizes the Company’s portfolio of securities held-to-maturity on December 31, 2022:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,936	$	55,561	$	—	$	11,375
Total municipals		66,936		55,561		—		11,375
FNMA		7,875		6,989		—		886
Total mortgage-backed securities		7,875		6,989		—		886
Allowance for credit losses		(1,100)		—		—		—
Total	$	73,711	$	62,550	$	—	$	12,261

The following table summarizes the Company’s portfolio of securities available for sale on June 30, 2023:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,339	$	81,290	$	151	$	2,200
Corporate		173,095		150,602		—		22,493
Mutual funds		11,346		11,346		—		—
Collateralized loan obligations		262,471		258,973		58		3,556
Other		1,434		1,434		—		—
Total other securities		531,685		503,645		209		28,249
REMIC and CMO		168,675		140,161		—		28,514
GNMA		8,861		7,079		1		1,783
FNMA		165,064		141,717		—		23,347
FHLMC		92,810		76,954		—		15,856
Total mortgage-backed securities		435,410		365,911		1		69,500
Total Securities excluding portfolio layer adjustments		967,095		869,556		210		97,749
Unallocated portfolio layer basis adjustments (1)		(5,504)		n/a		—		(5,504)
Total securities available for sale	$	961,591	$	869,556	$	210	$	92,245

(1) Represents the amount of portfolio layer method basis adjustments related to available for sale (“AFS”) securities hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual securities, however, the amounts impact the unrealized gains or losses for the individual securities being hedged. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

The following table summarizes the Company’s portfolio of securities available for sale on December 31, 2022:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,720	$	81,103	$	2	$	2,619
Corporate		146,430		131,766		—		14,664
Mutual funds		11,211		11,211		—		—
Collateralized loan obligations		129,684		125,478		—		4,206
Other		1,516		1,516		—		—
Total other securities		372,561		351,074		2		21,489
REMIC and CMO		175,712		148,414		—		27,298
GNMA		9,193		7,317		3		1,879
FNMA		172,690		148,265		—		24,425
FHLMC		96,725		80,287		—		16,438
Total mortgage-backed securities		454,320		384,283		3		70,040
Total securities available for sale	$	826,881	$	735,357	$	5	$	91,529

The corporate securities held by the Company at June 30, 2023 and December 31, 2022, are issued by U.S. banking institutions. The CMOs held by the Company at June 30, 2023 and December 31, 2022, are either fully guaranteed or issued by a government sponsored enterprise.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at June 30, 2023, by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due after ten years	$	66,548	$	57,326
Total other securities		66,548		57,326
Mortgage-backed securities		7,865		7,011
		74,413		64,337
Allowance for credit losses		(1,079)		-
Total securities held-to-maturity	$	73,334	$	64,337

	Amortized
Securities available for sale (1):	Cost		Fair Value
	(In thousands)
Due in one year or less	$	59,888	$	58,498
Due after one year through five years		74,823		69,033
Due after five years through ten years		255,416		235,696
Due after ten years		130,212		129,072
Total other securities		520,339		492,299
Mutual funds		11,346		11,346
Mortgage-backed securities		435,410		365,911
Total securities available for sale	$	967,095	$	869,556

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $5.5 million related to AFS securities hedged in a closed portfolio at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

The following tables show the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At June 30, 2023
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	57,326	$	9,222	$	—	$	—	$	57,326	$	9,222
Total other securities	3		57,326		9,222		—		—		57,326		9,222
FNMA	1		7,011		854		—		—		7,011		854
Total mortgage-backed securities	1		7,011		854		—		—		7,011		854
Total	4	$	64,337	$	10,076	$	—	$	—	$	64,337	$	10,076
Available for sale securities (1)
U.S. Government Agencies & Treasury	8	$	73,794	$	2,200	$	5,437	$	24	$	68,357	$	2,176
Corporate	26		150,602		22,493		46,412		6,748		104,190		15,745
CLO	31		229,211		3,556		104,188		1,004		125,023		2,552
Total other securities	65		453,607		28,249		156,037		7,776		297,570		20,473
REMIC and CMO	47		139,882		28,514		940		52		138,942		28,462
GNMA	10		6,952		1,783		97		1		6,855		1,782
FNMA	48		141,717		23,347		7,493		399		134,224		22,948
FHLMC	18		76,954		15,856		10,457		751		66,497		15,105
Total mortgage-backed securities	123		365,505		69,500		18,987		1,203		346,518		68,297
Total	188	$	819,112	$	97,749	$	175,024	$	8,979	$	644,088	$	88,770

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $5.5 million related to AFS securities hedged in a closed portfolio totaling at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

	At December 31, 2022
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	55,561	$	11,375	$	55,561	$	11,375	$	—	$	—
Total other securities	3		55,561		11,375		55,561		11,375		—		—
FNMA	1		6,989		886		6,989		886		—		—
Total mortgage-backed securities	1		6,989		886		6,989		886		—		—
Total	4	$	62,550	$	12,261	$	62,550	$	12,261	$	—	$	—
Available for sale securities
U.S. government agencies	7	$	77,856	$	2,619	$	77,059	$	2,517	$	797	$	102
Corporate	20		131,766		14,664		45,447		3,553		86,319		11,111
CLO	19		125,478		4,206		95,518		2,916		29,960		1,290
Total other securities	46		335,100		21,489		218,024		8,986		117,076		12,503
REMIC and CMO	47		148,120		27,298		40,911		3,457		107,209		23,841
GNMA	8		7,133		1,879		64		—		7,069		1,879
FNMA	47		148,229		24,425		38,296		3,871		109,933		20,554
FHLMC	18		80,287		16,438		24,838		2,397		55,449		14,041
Total mortgage-backed securities	120		383,769		70,040		104,109		9,725		279,660		60,315
Total	166	$	718,869	$	91,529	$	322,133	$	18,711	$	396,736	$	72,818

The Company reviewed each available for sale security that had an unrealized loss at June 30, 2023, and December 31, 2022. The Company does not have the intent to sell these securities, and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. If the Company identifies any decline in the fair value due to credit loss factors and evaluation indicates that a credit loss exists, then the present value of cash flows that is expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. All of these securities are rated investment grade or above and have a long history of no credit losses. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment.

In determining the risk of loss for available for sale securities, the Company considered that mortgage-backed securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government, and that issuers of the collateralized loan obligations (“CLO”) and the issuer of corporate securities are global systematically important banks. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. Based on this review, management believes that the unrealized losses have resulted from other factors not deemed credit-related and no allowance for credit loss was recorded.

The Company reviewed each held-to-maturity security at June 30, 2023, and December 31, 2022 as part of its quarterly Current Expected Credit Loss (“CECL”) process, resulting in an allowance for credit losses of $1.1 million at each of June 30, 2023 and December 31, 2022.

It is the Company’s policy to exclude accrued interest receivable from the calculation of the allowance for credit losses on held-to-maturity and the valuation of available for sale securities. Accrued interest receivable on held-to-maturity securities totaled $0.1 million each at June 30, 2023 and December 31, 2022 and accrued interest receivable on available for sale debt securities totaled $5.9 million and $3.7 million at June 30, 2023 and December 31, 2022, respectively.

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity.

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
		(In thousands)
Beginning balance	$	1,087	$	986	$	1,100	$	862
(Benefit) provision		(8)		99		(21)		223
Allowance for credit losses	$	1,079	$	1,085	$	1,079	$	1,085

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company did not sell any securities during the three and six months ended June 30, 2023 and 2022.

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Loans

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Loans

5.     Loans

The following represents the composition of loans as of the dates indicated:

		June 30,		December 31,
	2023		2022
	(In thousands)
Multi-family residential	$	2,593,955	$	2,601,384
Commercial real estate		1,917,749		1,913,040
One-to-four family ― mixed-use property		542,368		554,314
One-to-four family ― residential		230,055		241,246
Construction		57,325		70,951
Small Business Administration		22,404		23,275
Commercial business and other		1,466,358		1,521,548
Net unamortized premiums and unearned loan fees		8,836		9,011
Total loans, net of fees and costs excluding portfolio layer basis adjustments		6,839,050		6,934,769
Unallocated portfolio layer basis adjustments (1)		(6,625)		—
Total loans, net of fees and costs	$	6,832,425	$	6,934,769

(1) This amount represents portfolio layer method basis adjustments related to loans hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual loans, however, the amounts impact the net loan balance. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was de-designated. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Interest on loans is recognized on an accrual basis. Accrued interest receivable totaled $39.5 million and $36.8 million at June 30, 2023, and December 31, 2022, respectively, and was reported in “Interest and dividends receivable” on the Consolidated Statements of Financial Condition. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is likely to occur.

Allowance for credit losses

The allowance for credit losses (“ACL”) is an estimate that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial assets. Loans are charged off against that ACL when management believes that a loan balance is uncollectable based on quarterly analysis of credit risk.

The amount of the ACL is based upon a loss rate model that considers multiple factors which reflects management’s assessment of the credit quality of the loan portfolio. Management estimates the allowance balance using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The factors are both quantitative and qualitative in nature including, but not limited to, historical losses,

economic conditions, trends in delinquencies, value and adequacy of underlying collateral, volume and portfolio mix, and internal loan processes.

The Company recorded a provision for credit losses on loans totaling $1.4 million and $1.5 million for the three months ended June 30, 2023 and 2022, respectively. The Company recorded a provision for credit losses on loans totaling $8.9 million and $2.7 million for the six months ended June 30, 2023 and 2022, respectively. The provision recorded during the six months ended June 30, 2023, was driven by fully reserving for two non-accrual business loans that were subsequently charged-off in the first quarter of 2023, and increasing reserves for the elevated risk presented by the current rate environment to adjustable-rate loan’s debt coverage ratios, partially offset by a decline in loan balances during the period. During the six months ended June 30, 2023, the reasonable and supportable forecast period and reversion period were two and four quarters, respectively unchanged, from December 31, 2022. The ACL - loans totaled $38.6 million on June 30, 2023 compared to $40.4 million on December 31, 2022. On June 30, 2023, the ACL - loans represented 0.57% of gross loans and 207.1% of non-performing loans. On December 31, 2022, the ACL - loans represented 0.58% of gross loans and 124.9% of non-performing loans.

The Company may modify loans to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. When modifying a loan, an assessment of whether a borrower is experiencing financial difficulty is made on the date of modification. This modification may include reducing the loan interest rate, extending the loan term, any other-than-insignificant payment delay, principal forgiveness or any combination of these types of modifications. When such modifications are performed, a change to the allowance for credit losses is generally not required as the methodologies used to estimate the allowance already capture the effect of borrowers experiencing financial difficulty. During the three months ended June 30, 2023, there was one loan modified to a borrower experiencing financial difficulty. On June 30, 2023, there were no commitments to lend additional funds to borrowers who have received a loan modification as a result of financial difficulty.

On January 1, 2023, the Company adopted ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” without material impact on the business operations or consolidated financial statements. See Note 14 (“New Authoritative Accounting Pronouncements”) of the Notes to the Consolidated Financial Statements.

The following table shows loans modifications made to borrowers experiencing financial difficulty during the periods indicated:

	For the three and six months ended, June 30, 2023
(Dollars in thousands)	Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Small Business Administration	1	$	1,490	6.7	%	Provided twelve month payment deferral to be collected at maturity.
Total	1	$	1,490

The following table shows the payment status of borrowers experiencing financial difficulty and for which a modification has occurred at June 30, 2023:

		Payment Status of Borrowers Experiencing Financial Difficulty (Amortized Cost Basis)
(In thousands)		Current		30-89 Days Past Due		90+ Days Past Due		Total Modified
Small Business Administration	$	1,490	$	—	$	—	$	1,490
Total	$	1,490	$	—	$	—	$	1,490

The following table shows loans modified as Troubled Debt Restructured (“TDR”) during the periods indicated:

	For the three months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Commercial business and other	2	$	2,453	Two loans had amortization extensions
Total	2	$	2,453

	For the six months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Small Business Administration	1	$	271	Loan amortization extension.
Commercial business and other	4		5,222	One loan received a below market interest rate and three loans had an amortization extension
Total	5	$	5,493

The following table shows loans classified as TDR at amortized cost that are performing according to their restructured terms at the periods indicated:

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Multi-family residential	6	$	1,673
Commercial real estate	1		7,572
One-to-four family - mixed-use property	4		1,222
One-to-four family - residential	1		253
Small Business Administration	1		242
Commercial business and other	3		855
Total performing	16	$	11,817

The following table shows our recorded investment for loans classified as TDR at amortized cost that are not performing according to their restructured terms at the periods indicated.

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Commercial business and other	2	$	3,263
Total troubled debt restructurings that subsequently defaulted	2	$	3,263

The following tables show our non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing for the periods shown below:

	At or for the six months ended June 30, 2023
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	3,547	$	3,600	$	3,600	$	2	$	—
Commercial real estate		254		—		—		—		—
One-to-four family - mixed-use property		1,045		797		797		—		—
One-to-four family - residential		3,953		4,632		4,632		—		—
Small Business Administration		950		1,124		1,124		—		—
Commercial business and other		20,193		8,287		3,585		16		—
Total	$	29,942	$	18,440	$	13,738	$	18	$	—

	At or for the year ended December 31, 2022
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	2,652	$	3,547	$	3,547	$	—	$	—
Commercial real estate		640		254		254		—		—
One-to-four family - mixed-use property (1)		1,582		1,045		1,045		—		—
One-to-four family - residential		7,483		3,953		3,953		—		—
Small Business Administration		952		950		950		—		—
Construction		—		—		—		—		2,600
Commercial business and other (1)		1,945		20,193		3,291		171		—
Total	$	15,254	$	29,942	$	13,040	$	171	$	2,600

(1) Included in the above analysis are non-accrual performing TDR one-to-four family – mixed-use property totaling $0.3 million at December 31, 2022. Commercial business and other contains a non-accrual performing TDR totaling less than $0.1 million at December 31, 2022.

The following is a summary of interest foregone on non-accrual loans for the periods indicated.

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	474	$	588	$	980	$	960
Less: Interest income included in the results of operations		14		282		18		437
Total foregone interest	$	460	$	306	$	962	$	523

The following tables show the aging analysis of the amortized cost basis of loans at the period indicated by class of loans:
​

	June 30, 2023
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans (1)
Multi-family residential	$	2,504	$	—	$	3,600	$	6,104	$	2,591,360	$	2,597,464
Commercial real estate		—		—		—		—		1,916,994		1,916,994
One-to-four family - mixed-use property		773		—		797		1,570		543,652		545,222
One-to-four family - residential		2,694		173		4,632		7,499		223,716		231,215
Construction		—		—		—		—		57,205		57,205
Small Business Administration		325		—		1,124		1,449		20,864		22,313
Commercial business and other		494		5,234		5,279		11,007		1,457,630		1,468,637
Total	$	6,790	$	5,407	$	15,432	$	27,629	$	6,811,421	$	6,839,050

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

	December 31, 2022
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,475	$	1,787	$	3,547	$	6,809	$	2,598,363	$	2,605,172
Commercial real estate		2,561		—		254		2,815		1,912,083		1,914,898
One-to-four family - mixed-use property		3,721		—		797		4,518		552,777		557,295
One-to-four family - residential		2,734		—		3,953		6,687		235,793		242,480
Construction		—		—		2,600		2,600		68,224		70,824
Small Business Administration		329		—		950		1,279		21,914		23,193
Commercial business and other		7,636		16		10,324		17,976		1,502,931		1,520,907
Total	$	18,456	$	1,803	$	22,425	$	42,684	$	6,892,085	$	6,934,769

The following tables show the activity in the ACL on loans for the following three month periods:

The following tables show the activity in the ACL on loans for the following six month periods:

	June 30, 2023
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	9,552	$	8,184	$	1,875	$	901	$	261	$	2,198	$	—	$	17,471	$	40,442
Charge-offs		—		(8)		—		(12)		—		(7)		—		(11,002)		(11,029)
Recoveries		1		—		—		44		—		171		—		19		235
Provision (benefit)		165		30		(260)		(279)		(129)		(200)		—		9,618		8,945
Ending balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	—	$	16,106	$	38,593

	June 30, 2022
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	8,185	$	7,158	$	1,755	$	784	$	186	$	1,209	$	—	$	17,858	$	37,135
Charge-offs		—		—		—		—		—		(1,054)		—		(32)		(1,086)
Recoveries		1		—		—		4		—		27		447		173		652
Provision (benefit)		1,219		1,285		204		78		114		1,936		(447)		(1,666)		2,723
Ending balance	$	9,405	$	8,443	$	1,959	$	866	$	300	$	2,118	$	—	$	16,333	$	39,424

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans.” If a loan does not fall within one of the previously mentioned categories and management believes weakness is evident then we designate the loan as “Watch;” all other loans would be considered “Pass.” Loans that are non-accrual are designated as Substandard, Doubtful or Loss. These loan designations are updated quarterly. We designate a loan as Substandard when a well-defined weakness is identified that may jeopardize the orderly liquidation of the debt. We designate a loan as Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment. The Company does not hold any loans designated as Loss, as loans that are designated as Loss are charged to the Allowance for Credit Losses. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications but does contain a potential weakness that deserves closer attention.

The following table summarizes the various risk categories of mortgage and non-mortgage loans by loan portfolio segments and by class of loans by year of origination at June 30, 2023:

	For the year ended
														Revolving Loans		Revolving Loans
														Amortized Cost		converted to
(In thousands)		2023		2022		2021		2020		2019		Prior		Basis		term loans		Total
Multi-family Residential
Pass	$	89,777	$	477,475	$	283,598	$	218,950	$	308,790	$	1,178,081	$	3,564	$	—	$	2,560,235
Watch		—		892		—		2,860		—		28,246		—		—		31,998
Special Mention		—		—		—		—		—		873		—		—		873
Substandard		—		—		—		—		—		4,358		—		—		4,358
Total Multi-family Residential	$	89,777	$	478,367	$	283,598	$	221,810	$	308,790	$	1,211,558	$	3,564	$	—	$	2,597,464
Commercial Real Estate
Pass	$	59,422	$	325,928	$	178,735	$	149,773	$	222,077	$	948,085	$	—	$	—	$	1,884,020
Watch		—		1,960		1,484		—		9,570		19,783		—		—		32,797
Special Mention		—		—		—		—		—		177		—		—		177
Total Commercial Real Estate	$	59,422	$	327,888	$	180,219	$	149,773	$	231,647	$	968,045	$	—	$	—	$	1,916,994
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8
1-4 Family Mixed-Use Poperty
Pass	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	343,763	$	—	$	—	$	538,018
Watch		—		—		—		—		—		5,786		—		—		5,786
Special Mention		—		—		—		—		—		450		—		—		450
Substandard		—		—		—		—		—		968		—		—		968
Total 1-4 Family Mixed-Use Property	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	350,967	$	—	$	—	$	545,222
1-4 Family Residential
Pass	$	4,141	$	23,445	$	8,579	$	17,905	$	40,029	$	108,935	$	7,607	$	11,106	$	221,747
Watch		—		513		278		—		738		1,607		63		1,413		4,612
Special Mention		—		—		—		—		—		—		—		173		173
Substandard		—		—		—		—		—		4,240		—		443		4,683
Total 1-4 Family Residential	$	4,141	$	23,958	$	8,857	$	17,905	$	40,767	$	114,782	$	7,670	$	13,135	$	231,215
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	12	$	—	$	—	$	12
Construction
Pass	$	4,357	$	3	$	10,186	$	—	$	—		—	$	42,659	$	—	$	57,205
Total Construction	$	4,357	$	3	$	10,186	$	—	$	—	$	—	$	42,659	$	—	$	57,205
Small Business Administration
Pass	$	814	$	3,318	$	3,202	$	3,719	$	690	$	4,271	$	—	$	—	$	16,014
Watch		—		—		—		—		49		3,238		—		—		3,287
Special Mention		—		—		1,639		—		—		34		—		—		1,673
Substandard		—		—		176		—		—		1,163		—		—		1,339
Total Small Business Administration	$	814	$	3,318	$	5,017	$	3,719	$	739	$	8,706	$	—	$	—	$	22,313
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial Business
Pass	$	51,057	$	135,313	$	79,438	$	31,380	$	32,052	$	78,303	$	284,806	$	—	$	692,349
Watch		211		381		8,102		2,446		16,403		22,728		684		—		50,955
Special Mention		—		—		—		4,775		29		1,757		—		—		6,561
Substandard		—		2,368		—		—		28		3,624		3,375		—		9,395
Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Commercial Business	$	51,268	$	138,062	$	87,540	$	38,601	$	48,512	$	106,412	$	293,567	$	—	$	763,962
Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	10	$	9,267	$	—	$	10,960
Commercial Business - Secured by RE
Pass	$	21,100	$	179,716	$	132,943	$	107,726	$	40,571	$	147,446	$	—	$	—	$	629,502
Watch		—		—		—		—		610		59,556		—		—		60,166
Special Mention		—		—		—		—		14,800		—		—		—		14,800
Total Commercial Business - Secured by RE	$	21,100	$	179,716	$	132,943	$	107,726	$	55,981	$	207,002	$	—	$	—	$	704,468
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Total Other	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	42	$	—	$	—	$	42
Total by Loan Type
Total Pass	$	242,965	$	1,189,488	$	739,067	$	561,511	$	707,433	$	2,809,001	$	338,726	$	11,106	$	6,599,297
Total Watch		211		3,746		9,864		5,306		27,370		140,944		747		1,413		189,601
Total Special Mention		—		—		1,639		4,775		14,829		3,291		—		173		24,707
Total Substandard		—		2,368		176		—		28		14,353		3,375		443		20,743
Total Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Loans (1)	$	243,176	$	1,195,602	$	750,746	$	571,592	$	749,660	$	2,967,589	$	347,550	$	13,135	$	6,839,050
Total Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	79	$	9,267	$	—	$	11,029

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Included within net loans were $5.7 million and $5.2 million at June 30, 2023 and December 31, 2022, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction.

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents types of collateral-dependent loans by class of loans as of the periods indicated:

	Collateral Type
	June 30, 2023				December 31, 2022
(In thousands)		Real Estate		Business Assets		Real Estate		Business Assets
Multi-family residential	$	3,600	$	—	$	3,547	$	—
Commercial real estate		—		—		254		—
One-to-four family - mixed-use property		797		—		1,045		—
One-to-four family - residential		4,632		—		3,953		—
Small Business Administration		—		1,124		—		950
Commercial business and other		—		8,287		2,853		17,340
Total	$	9,029	$	9,411	$	11,652	$	18,290

Off-Balance Sheet Credit Losses

Also included within scope of the CECL standard are off-balance sheet loan commitments, which includes the unfunded portion of committed lines of credit and commitments “in-process”. Commitments “in‐process” reflect loans not in the Company’s books but rather negotiated loan / line of credit terms and rates that the Company has offered to customers and is committed to honoring. In reference to “in‐process” credits, the Company defines an unfunded commitment as a credit that has been offered to and accepted by a borrower, which has not closed and by which the obligation is not unconditionally cancellable.

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally home equity lines of credit and business lines of credit) totaled $402.4 million and $438.5 million on June 30, 2023, and December 31, 2022, respectively.

The following table presents the activity in the allowance for off-balance sheet credit losses for the three and six months ended June 30, 2023, and 2022.

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands)
Balance at beginning of period	$	885	$	1,589	$	970	$	1,209
(Benefit) provision		(72)		(145)		(157)		235
Allowance for Off-Balance Sheet - Credit losses (1)	$	813	$	1,444	$	813	$	1,444

(1) Included in “Other liabilities” on the Consolidated Statements of Financial Condition.

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Loans Held for Sale

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Loans held for sale

6.     Loans held for sale

Loans held for sale are carried at the lower of cost or estimated fair value. At June 30, 2023 and December 31, 2022, the Bank did not have any loans held for sale.

The following table shows loans sold during the periods indicated:

	For the three months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	2	$	2,074	$	—	$	14
Commercial	1		1,026		—		—
One-to-four family - mixed-use property	2		1,366		—		40
Total	5	$	4,466	$	—	$	54

	For the six months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	7	$	3,622	$	—	$	69
Commercial	3		1,867		(8)		—
One-to-four family - mixed-use property	3		1,553		—		39
Total	13	$	7,042	$	(8)	$	108

	For the three and six months ended June 30, 2022
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Performing loans
Multi-family residential	4	$	10,136	$	—	$	—
Commercial	1		4,312		—		—
Total	5	$	14,448	$	—	$	—
Delinquent and non-performing loans
Commercial	1		3,687		—		73
One-to-four family - mixed-use property	1	$	430	$	—	$	—
Total	2	$	4,117	$	—	$	73

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Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

7.     Leases

The Company has 31 operating leases for branches (including headquarters) and office spaces, 9 operating leases for vehicles, and one operating lease for equipment. Our leases have remaining lease terms ranging from four months to approximately 13 years, none of which has a renewal option reasonably certain of exercise, which has been reflected in the Company’s calculation of the lease term.

The Company has elected the short-term lease recognition exemption such that the Company will not recognize Right of Use (“ROU”) assets or lease liabilities for leases with a term of less than 12 months from the commencement date. The Company has four agreements in 2023 and two agreements in 2022 that qualified as short-term leases.

Certain leases have escalation clauses for operating expenses and real estate taxes. The Company’s non-cancelable operating lease agreements expire through 2036.

Supplemental balance sheet information related to leases are as follows:

(Dollars in thousands)	June 30, 2023			December 31, 2022
Operating lease ROU asset	$	41,526		$	43,289
Operating lease liability	$	44,402		$	46,125
Weighted-average remaining lease term-operating leases		6.5 years			6.6 years
Weighted average discount rate-operating leases		3.2	%		2.9	%

The components of lease expense and cash flow information related to leases were as follows:

		For the three months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,143	$	2,099
Operating lease cost	Other operating expenses		23		26
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		82		36
Variable lease cost	Occupancy and equipment		281		238
Total lease cost		$	2,529	$	2,399
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	2,261	$	2,343
Right-of-use assets obtained in exchange for new operating lease liabilities		$	1,198	$	—

		For the six months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	4,442	$	4,198
Operating lease cost	Other operating expenses		46		48
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		138		97
Variable lease cost	Occupancy and equipment		523		438
Total lease cost		$	5,149	$	4,781
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	4,655	$	4,769
Right-of-use assets obtained in exchange for new operating lease liabilities		$	2,044	$	47

The Company’s minimum annual rental payments for Bank facilities due under non-cancelable leases are as follows as of June 30, 2023:

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	5,218
2024		9,520
2025		8,850
2026		7,955
2027		3,865
Thereafter		13,689
Total minimum payments required		49,097
Less: implied interest		4,695
Total lease obligations	$	44,402

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Stock-based Compensation

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Stock-Based Compensation

8.     Stock-Based Compensation

The Company has a long-term incentive compensation program for certain Company executive officers that includes grants of performance-based restricted stock units (“PRSUs”) in addition to time-based restricted stock units (“RSU”). Under the terms of the PRSU Agreement, the number of PRSUs that may be earned depends on the extent to which performance goals for the award are achieved over a three-year performance period, as determined by the Compensation Committee of the Board. As of June 30, 2023, PRSUs granted in 2023 and 2022 are being accrued at target and PRSUs granted in 2021 are being accrued above target. The different levels of accrual are commensurate with the projected performance of the respective grant.

On May 18, 2021, stockholders approved an amendment to the 2014 Omnibus Plan (the “Amendment”) authorizing an additional 1,100,000 shares available for future issuance. Including the additional shares authorized from the Amendment, 744,593 shares were available for future issuance under the 2014 Omnibus Plan at June 30, 2023.

For the three months ended June 30, 2023 and 2022, the Company’s net income, as reported, included $0.5 million and $0.9 million, respectively, of stock-based compensation costs, including the benefit or expense of phantom stock awards, and $0.1 million and $0.3 million of income tax benefit respectively, related to the stock-based compensation plans. For the six months ended June 30, 2023 and 2022, the Company’s net income, as reported, included $3.6 million and $4.9 million, respectively, of stock-based compensation costs, including the benefit or expense of phantom stock awards, and $0.9 million and $1.3 million of income tax benefit, respectively, related to the stock-based compensation plans.

During the three months ended June 30, 2023 and 2022, the Company did not grant any RSU or PRSUs. During the six months ended June 30, 2023 and 2022, the Company granted 235,850 and 212,811 RSU awards and 79,050 and 63,250 PRSU awards, respectively.  

The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit awards and performance restricted stock units. Compensation cost is recognized over the vesting period of the award using the straight-line method. Forfeitures are recorded in the period they occur.

The following table summarizes the Company’s RSU and PRSU awards under the 2014 Omnibus Plan for the six months ended June 30, 2023:

	RSU Awards			PRSU Awards
		Weighted-Average			Weighted-Average
		Grant-Date			Grant-Date
	Shares	Fair Value		Shares	Fair Value
Non-vested awards at December 31, 2022	275,588	$	22.30	68,800	$	20.90
Granted	235,850		19.84	79,050		19.99
Vested	(213,639)		21.19	(53,430)		19.94
Forfeited	(2,840)		22.14	—		—
Non-vested at June 30, 2023	294,959	$	21.14	94,420	$	20.68
Vested but unissued at June 30, 2023	249,780	$	20.78	142,065	$	20.80

As of June 30, 2023, there was $5.8 million of total unrecognized compensation cost related to RSU and PRSU awards granted. That cost is expected to be recognized over a weighted-average period of 2.7 years. The total fair value of awards vested for the three months ended June 30, 2023 and 2022, was $0.2 million, and $0.5 million, respectively. The total fair value of awards vested for the six months ended June 30, 2023 and 2022 was $5.2 million and $7.1 million, respectively. The vested but unissued RSU and PRSU awards consist of awards made to employees and directors who are eligible for retirement. According to the terms of these awards, which provide for vesting upon retirement, these employees and directors have no risk of forfeiture. These shares will be issued at the original contractual vesting and settlement dates.

Phantom Stock Plan: The Company maintains a non-qualified phantom stock plan as a supplement to its profit-sharing plan for officers who have achieved the designated level and completed one year of service. The Company adjusts its liability under this plan to the fair value of the shares at the end of each period.

The following table summarizes the Phantom Stock Plan at or for the six months ended June 30, 2023:

Phantom Stock Plan	Shares	Fair Value		Weighted-Average Fair Value
Outstanding at December 31, 2022	158,410	$	19.38
Granted	18,403			$	18.12
Distributions	(858)			$	18.87
Outstanding at June 30, 2023	175,955	$	12.29
Vested at June 30, 2023	175,819	$	12.29

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $0.4 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively. The total fair value of the distributions from the Phantom Stock Plan was $1,000 and $2,000 for the three months ended June 30, 2023 and 2022, respectively.

The Company recorded stock-based compensation benefit for the Phantom Stock Plan of $1.1 million and $0.4 million for the six months ended June 30, 2023 and 2022, respectively. The total fair value of the distributions from the Phantom Stock Plan was $16,000 and $18,000 for the six months ended June 30, 2023, and 2022, respectively.

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Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Pension and Other Postretirement Benefit Plans

9.     Pension and Other Postretirement Benefit Plans

The following table sets forth information regarding the components of net expense for the pension and other postretirement benefit plans.

	Three months ended				Six months ended
	June 30,				June 30,
(In thousands)	2023		2022		2023		2022
Employee Pension Plan:
Interest cost	$	203	$	138	$	406	$	276
Amortization of unrecognized loss		—		1		—		2
Expected return on plan assets		(277)		(258)		(554)		(515)
Net employee pension benefit (1)	$	(74)	$	(119)	$	(148)	$	(237)
Outside Director Pension Plan:
Service cost	$	2	$	3	$	4	$	6
Interest cost		14		12		29		23
Amortization of unrecognized gain		(40)		(7)		(80)		(14)
Net outside director pension (benefit) expense (2)	$	(24)	$	8	$	(47)	$	15
Other Postretirement Benefit Plans:
Service cost	$	40	$	67	$	80	$	134
Interest cost		96		69		191		139
Amortization of unrecognized gain		(60)		—		(120)		—
Amortization of past service credit		—		(7)		—		(14)
Net other postretirement expense (1)	$	76	$	129	$	151	$	259

(1) Reported in the Consolidated Statements of Income as part of salaries and employee benefits.

(2) Reported in the Consolidated Statements of Income as part of other operating expenses.

The Company previously disclosed in its Consolidated Financial Statements for the year ended December 31, 2022 that it expects to contribute $0.2 million to the Outside Director Pension Plan (the “Outside Director Pension Plan”) and $0.3 million to the other postretirement benefit plans (the “Other Postretirement Benefit Plans”), during the year ending December 31, 2023. The Company does not expect to make a contribution to the Employee Pension Plan. As of June 30, 2023, the Company had contributed $44,000 to the Outside Director Pension Plan and $65,000 to the Other Postretirement Benefit Plans. As of June 30, 2023, the Company has not revised its expected contributions for the year ending December 31, 2023.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Fair Value of Financial Instruments

10.     Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with GAAP which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP permits entities to choose to measure many financial instruments and certain other items at fair value. At June 30, 2023, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.1 million and $47.8 million, respectively. At December 31, 2022, the Company carried financial assets and financial liabilities under the fair value option with fair values of $13.0 million and $50.5 million, respectively. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the three and six months ended June 30, 2023 and 2022.

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, at or for the periods ended as indicated:

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at June 30,		at December 31,		For the three months ended				For the six months ended
Description	2023		2022		June 2023		June 2022		June 2023		June 2022
(In thousands)
Mortgage-backed securities	$	278	$	295	$	—	$	(8)	$	1	$	(12)
Other securities		12,781		12,728		(192)		(484)		(83)		(1,020)
Borrowed funds		47,777		50,507		486		3,025		2,995		1,756
Net gain from fair value adjustments					$	294	$	2,533	$	2,913	$	724

Included in the fair value of the financial assets and financial liabilities selected for the fair value option is the accrued interest receivable or payable for the related instrument. The Company reports as interest income or interest expense in the Consolidated Statement of Income, the interest receivable or payable on the financial instruments selected for the fair value option at their respective contractual rates.

The borrowed funds had a contractual principal amount of $61.9 million at both June 30, 2023 and December 31, 2022. The fair value of borrowed funds includes accrued interest payable of $0.4 million at both June 30, 2023 and December 31, 2022.

The Company generally holds its earning assets to maturity and settles its liabilities at maturity. However, fair value estimates are made at a specific point in time and are based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Accordingly, as assumptions change, such as interest rates and prepayments, fair value estimates change, and these amounts may not necessarily be realized in an immediate sale.

Disclosure of fair value does not require fair value information for items that do not meet the definition of a financial instrument or certain other financial instruments specifically excluded from its requirements. These items include core deposit intangibles and other customer relationships, premises and equipment, leases, income taxes and equity.

Further, fair value disclosure does not attempt to value future income or business. These items may be material and accordingly, the fair value information presented does not purport to represent, nor should it be construed to represent, the underlying “market” or franchise value of the Company.

A description of the methods and significant assumptions utilized in estimating the fair value of the Company’s financial assets and liabilities that are carried at fair value on a recurring basis are as follows:

Level 1 – when quoted market prices are available in an active market. At June 30, 2023 and December 31, 2022, Level 1 included one mutual fund.

Level 2 – when quoted market prices are not available, fair value is estimated using quoted market prices for similar financial instruments and adjusted for differences between the quoted instrument and the instrument being valued. Fair value can also be estimated by using pricing models, or discounted cash flows. Pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices and credit spreads. In addition to observable market information, models also incorporate maturity and cash flow assumptions. At June 30, 2023 and December 31, 2022, Level 2 included mortgage-backed securities, CLOs, corporate debt, municipals, and interest rate swaps.

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At June 30, 2023 and December 31, 2022, Level 3 included trust preferred securities owned, and junior subordinated debentures issued by the Company.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies, assumptions, and models to determine fair value of certain financial instruments could produce different estimates of fair value at the reporting date.

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, including those reported at fair value under the fair value option, and the level that was used to determine their fair value, at June 30, 2023 and December 31, 2022:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
Assets:	(In thousands)
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	365,911	$	384,283	$	—	$	—	$	365,911	$	384,283
Other securities		11,346		11,211		490,865		338,347		1,434		1,516		503,645		351,074
Interest rate swaps		—		—		87,732		74,586		—		—		87,732		74,586
Total assets	$	11,346	$	11,211	$	944,508	$	797,216	$	1,434	$	1,516	$	957,288	$	809,943
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	47,777	$	50,507	$	47,777	$	50,507
Interest rate swaps		—		—		16,510		18,407		—		—		16,510		18,407
Total liabilities	$	—	$	—	$	16,510	$	18,407	$	47,777	$	50,507	$	64,287	$	68,914

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the periods indicated:  

	For the three months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,445	$	48,117	$	1,740	$	57,955
Net (loss) gain from fair value adjustment of financial assets (1)		(12)		—		(80)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(486)		—		(3,025)
Increase (decrease) in accrued interest		1		28		2		61
Change in unrealized (gains) losses included in other comprehensive loss		—		118		—		361
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

(1) Presented in the Consolidated Statements of Income under net gain (loss) from fair value adjustments.

	For the six months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,516	$	50,507	$	1,695	$	56,472
Net (loss) gain from fair value adjustment of financial assets (1)		(83)		—		(35)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(2,995)		—		(1,756)
Increase (decrease) in accrued interest		1		40		2		77
Change in unrealized (gains) losses included in other comprehensive loss		—		225		—		559
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

The following tables present the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	June 30, 2023
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,434	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%
Liabilities:
Junior subordinated debentures	$	47,777	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%

	December 31, 2022
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,516	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%
Liabilities:
Junior subordinated debentures	$	50,507	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities and junior subordinated debentures valued under Level 3 at June 30, 2023 and December 31, 2022, are the effective yields used in the cash flow models. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth the Company’s assets and liabilities that are carried at fair value on a non-recurring basis and the level that was used to determine their fair value at June 30, 2023 and December 31, 2022:

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
	(In thousands)
Assets:
Certain delinquent loans	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330
Total assets	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330

The following tables present the qualitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements at the periods indicated:

	At June 30, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	5,776	Sales approach	Adjustment to sales comparison value	-16.9% to 0.0	%	-2.2	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	11.0	%
Certain delinquent loans	$	1,261	Discounted Cashflow	Discount Rate	4.3% to 9.2	%	9.0	%
				Probability of Default	29.0% to 35.0	%	29.3	%

	At December 31, 2022
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	18,189	Sales approach	Adjustment to sales comparison value	-20.0% to 0.0	%	-1.3	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	13.6	%
Certain delinquent loans	$	141	Discounted Cashflow	Discount Rate	4.3	%	4.3	%
				Probability of Default	35.0	%	35.0	%

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at June 30, 2023 and December 31, 2022.

The methods and assumptions used to estimate fair value at June 30, 2023 and December 31, 2022 are as follows:

Securities:

The fair values of securities are contained in Note 4 (“Securities”) of the Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices, where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued. When there is limited activity or less transparency around inputs to the valuation, securities are valued using discounted cash flows.

Certain Delinquent Loans:

For certain delinquent loans, fair value is generally estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets or, for collateral dependent loans, 85% of the appraised or internally estimated value of the property. See Note 5 (“Loans”) of the Notes to the Consolidated Financial Statements.

Junior Subordinated Debentures:

The fair value of the junior subordinated debentures was developed using a credit spread based on stated spreads for recently issued subordinated debt instruments for issuers of similar asset size and credit quality of the Company and with similar durations adjusting for differences in the junior subordinated debt’s credit rating, liquidity, and time to maturity. The unrealized net gain/loss attributable to changes in our own credit risk was determined by adjusting the fair value as determined in the proceeding sentence by the average rate of default on debt instruments with a similar debt rating as our junior subordinated debentures, with the difference from the original calculation and this calculation resulting in the instrument-specific unrealized gain/loss.

Interest Rate Swaps:

The fair value of interest rate swaps is based upon broker quotes.

The following tables set forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at the periods indicated:

	June 30, 2023
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	160,053	$	160,053	$	160,053	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,865		7,011		—		7,011		—
Other securities		65,469		57,326		—		—		57,326
Securities available for sale
Mortgage-backed securities		365,911		365,911		—		365,911		—
Other securities		503,645		503,645		11,346		490,865		1,434
Loans		6,832,425		6,488,955		—		—		6,488,955
FHLB-NY stock		36,168		36,168		—		36,168		—
Accrued interest receivable		52,911		52,911		—		5,821		47,090
Interest rate swaps		87,732		87,732		—		87,732		—
Liabilities:
Deposits	$	6,723,690	$	6,663,332	$	4,490,994	$	2,172,338	$	—
Borrowed Funds		857,400		807,724		—		759,947		47,777
Accrued interest payable		9,234		9,234		—		9,234		—
Interest rate swaps		16,510		16,510		—		16,510		—

	December 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	151,754	$	151,754	$	151,754	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,875		6,989		—		6,989		—
Other securities		65,836		55,561		—		—		55,561
Securities available for sale
Mortgage-backed securities		384,283		384,283		—		384,283		—
Other securities		351,074		351,074		11,211		338,347		1,516
Loans		6,934,769		6,651,795		—		—		6,651,795
FHLB-NY stock		45,842		45,842		—		45,842		—
Accrued interest receivable		45,048		45,048		—		3,819		41,229
Interest rate swaps		74,856		74,856		—		74,856		—
Liabilities:
Deposits	$	6,485,342	$	6,453,978	$	4,959,004	$	1,494,974	$	—
Borrowed Funds		1,052,973		1,027,370		—		976,863		50,507
Accrued interest payable		10,034		10,034		—		10,034		—
Interest rate swaps		18,407		18,407		—		18,407		—

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Derivative Financial Instruments

11.     Derivative Financial Instruments

At June 30, 2023 and December 31, 2022, the Company’s derivative financial instruments consisted of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans and securities with $864.2 million and $273.6 million of swaps outstanding at June 30, 2023 and December 31, 2022, respectively; 2) to facilitate risk management strategies for our loan customers with $240.7 million of swaps outstanding, which include $120.4 million each with customers and bank counterparties at June 30, 2023 and $221.2 million of swaps outstanding, which include $110.6 million each with customers and bank counterparties at December 31, 2022; and 3) to mitigate exposure to rising interest rates on certain short-term advances, brokered deposits and municipal deposits with $922.5 million of swaps outstanding at June 30, 2023, and $871.5 million of swaps outstanding at December 31, 2022.

The Company adopted ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method in the first quarter of 2023. During the six months ended June 30, 2023, the Company entered into portfolio layer hedges on a closed portfolio of AFS securities with a notional amount of $200.0 million and a closed portfolio of loans with a notional amount of $400.0 million. See Note 14 (“New Authoritative Accounting Pronouncements”) of the Notes to the Consolidated Financial Statements.

For non-portfolio layer method fair value hedges, the hedge basis (the amount of the change in fair value) is added to (or subtracted from) the carrying amount of the hedged item. For portfolio layer method hedges, the hedge basis does not adjust the carrying value of the hedged item and is instead maintained on a closed portfolio basis. These basis adjustments would be allocated to the amortized cost of specific loans or AFS securities within the pools if either of the hedges were de-designated. The Company did not have any portfolio layer hedges prior to the first quarter of 2023.

At June 30, 2023 and December 31, 2022, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges.

The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other Assets for derivatives with positive fair values and Other Liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship.

At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $241.7 million and $221.2 million, respectively, were not designated as hedges. At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $864.2 million and $273.6 million, respectively, were designated as fair value hedges. At June 30, 2023 and December 31, 2022, derivatives with a combined notional amount of $921.5 million and $871.5 million, respectively, were designated as cash flow hedges.

For cash flow hedges, the changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss), net of tax. Amounts in accumulated other comprehensive loss are reclassified into earnings in the same period during which the hedged forecasted transaction effected earnings. During the three months ended June 30, 2023 and 2022, $6.8 million in reduced expense and $2.4 million in additional expense, respectively, was reclassified from accumulated other comprehensive loss to interest expense. During the six months ended June 30, 2023 and 2022, $11.0 million in reduced expense and $5.1 million in additional expense was reclassified from accumulated other comprehensive loss to interest expense. The estimated amount to be reclassified in the next 12 months out of accumulated other comprehensive loss is $25.5 million in reduced expense.

Changes in the fair value of interest rate swaps not designated as hedges are reflected in “Net gain (loss) from fair value adjustments” in the Consolidated Statements of Income.

The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated:

	Assets				Liabilities
	Notional				Notional
	Amount		Fair Value (1)		Amount		Fair Value (1)
June 30, 2023	(In thousands)
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	921,500	$	35,655	$	-	$	-
Fair value hedges:
Interest rate swaps (loans and securities)		864,192		35,564		-		-
Non hedge:
Interest rate swaps (loans and deposits)		121,351		16,513		120,351		16,510
Total	$	1,907,043	$	87,732	$	120,351	$	16,510
December 31, 2022
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	700,750	$	31,716	$	170,750	$	210
Fair value hedges:
Interest rate swaps (loans)		273,607		24,673		-		-
Non hedge:
Interest rate swaps (loans)		110,598		18,197		110,598		18,197
Total	$	1,084,955	$	74,586	$	281,348	$	18,407

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

The following table presents information regarding the Company’s fair value hedged items for the periods indicated:

						Cumulative Amount
						of the Fair Hedging Adjustment
Line Item in the Consolidated Statement		Carrying Amount of the				Included in the Carrying Amount of
of Financial Condition in Which		Hedged				the Hedged
the Hedged Item Is Included		Assets/(Liabilities)				Assets/(Liabilities)
(In thousands)		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Loans
Multi-family residential	$	81,741	$	82,613	$	(10,094)	$	(10,480)
Commercial real estate		159,727		167,353		(14,686)		(15,442)
Total	$	241,468	$	249,966	$	(24,780)	$	(25,922)
Portfolio Layer
Loans held for Investment (1)	$	2,651,394	$	—	$	(6,625)	$	—
Securities available for sale (2)		294,931		—		(5,504)		—
Total	$	2,946,325	$	—	$	(12,129)	$	—

(1) Carrying amount represents the amortized cost. At June 30, 2023, the amortized cost of the portfolio layer method closed portfolio was $2.7 billion, of which $400 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $6.6 million.

(2) Carrying amount represents the fair value. At June 30, 2023, the fair value of the portfolio layer method closed portfolio was $295 million, of which $200 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $5.5 million.

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

		For the three months ended				For the six months ended
	Affected Line Item in the Statements	June 30,				June 30,
(In thousands)	Where Net Income is Presented	2023		2022		2023		2022
Financial Derivatives:
Interest rate swaps - fair value hedge (loans)	Interest and fees on loans	$	2,669	$	(886)	$	4,566	$	(2,321)
Interest rate swaps - fair value hedge (securities)	Interest and dividends on securities		788		—		846		—
Interest rate swaps - non hedge (municipal deposits)	Deposits		3		—		3		—
Interest rate swaps - cash flow hedge (short-term advances)	Other interest expense		1,922		(1,489)		3,343		(3,954)
Interest rate swaps - cash flow hedge (brokered deposits)	Deposits		4,958		104		7,825		49
Total net income (expense) from the effects of derivative instruments		$	10,340	$	(2,271)	$	16,583	$	(6,226)

The Company’s interest rate swaps are subject to master netting arrangements between the Company and its designated counterparties. The Company has not made a policy election to offset its derivative positions.

The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Financial Condition as of the dates indicated:

			Gross Amount		Net Amount
	Gross Amounts		Offset in Statement of		Presented in Statement of		Financial		Cash
(In thousands)	Recognized		Financial Condition		Financial Condition		Instruments		Collateral		Net Amount
June 30, 2023
Assets:
Interest rate swaps	$	87,732	$	—	$	87,732	$	—	$	(83,485)	$	4,247
Liabilities:
Interest rate swaps		16,510		—		16,510		—		—		16,510
December 31, 2022
Assets:
Interest rate swaps	$	74,586	$	—	$	74,586	$	—	$	(72,185)	$	2,401
Liabilities:
Interest rate swaps		18,407		—		18,407		—		—		18,407

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Accumulated Other Comprehensive Income (Loss)

12.     Accumulated Other Comprehensive Income (Loss):

The following tables set forth the changes in accumulated other comprehensive income (loss) by component for the periods indicated:

	For the three months ended June 30, 2023
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(59,119)	$	20,240	$	(344)	$	1,439	$	(37,784)
Other comprehensive income before reclassifications, net of tax		(7,349)		10,991		—		(81)		3,561
Amounts reclassified from accumulated other comprehensive income, net of tax		2,945		(4,672)		(69)		—		(1,796)
Net current period other comprehensive income, net of tax		(4,404)		6,319		(69)		(81)		1,765
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the three months ended June 30, 2022
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(29,699)	$	13,345	$	(1,291)	$	2,141	$	(15,504)
Other comprehensive income before reclassifications, net of tax		(20,434)		3,285		—		(219)		(17,368)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		1,630		(22)		—		1,608
Net current period other comprehensive income (loss), net of tax		(20,434)		4,915		(22)		(219)		(15,760)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

	For the six months ended June 30, 2023
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(63,106)	$	25,380	$	(275)	$	1,513	$	(36,488)
Other comprehensive income before reclassifications, net of tax		(4,216)		8,799		—		(155)		4,428
Amounts reclassified from accumulated other comprehensive income, net of tax		3,799		(7,620)		(138)		—		(3,959)
Net current period other comprehensive income (loss), net of tax		(417)		1,179		(138)		(155)		469
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the six months ended June 30, 2022
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(6,272)	$	(1,406)	$	(1,282)	$	2,276	$	(6,684)
Other comprehensive income before reclassifications, net of tax		(43,861)		16,177		—		(354)		(28,038)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		3,489		(31)		—		3,458
Net current period other comprehensive income (loss), net of tax		(43,861)		19,666		(31)		(354)		(24,580)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

The following tables set forth significant amounts reclassified from accumulated other comprehensive income (loss) by component for the periods indicated:

For the three months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(4,266)		Interest and dividend income
		1,321		Provision for income taxes
	$	(2,945)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	6,785		Interest expense
		(2,113)		Provision for income taxes
	$	4,672
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	100	(1)	Other operating expenses
		(31)		Provision for income taxes
	$	69

For the three months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(2,364)		Interest expense
		734		Provision for income taxes
	$	(1,630)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	6	(1)	Other operating expenses
Prior service credits benefit (expense)		7	(1)	Other operating expenses
		13		Total before tax
		9		Provision for income taxes
	$	22

For the six months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(5,504)		Interest and dividend income
		1,705		Provision for income taxes
	$	(3,799)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	11,040		Interest expense
		(3,420)		Provision for income taxes
	$	7,620
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	200	(1)	Other operating expense
		(62)		Provision for income taxes
	$	138

For the six months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(5,087)		Interest expense
		1,598		Provision for income taxes
	$	(3,489)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	12	(1)	Other operating expense
Prior service credits benefit (expense)		14	(1)	Other operating expense
		26		Total before tax
		5		Provision for income taxes
	$	31

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 9 (“Pension and Other Postretirement Benefit Plans”) for additional information

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Regulatory Capital

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Regulatory Capital

13.     Regulatory Capital

Under current capital regulations, the Bank is required to comply with four separate capital adequacy standards and a Capital Conservation Buffer (“CCB”). As of June 30, 2023, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Bank was 6.33% and 6.37% at June 30, 2023 and December 31, 2022, respectively.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	915,247	10.67	%	$	915,628	10.56	%
Requirement to be well-capitalized		428,869	5.00			433,667	5.00
Excess		486,378	5.67			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		432,313	6.50			431,734	6.50
Excess		482,934	7.26			483,894	7.29
Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		532,077	8.00			531,365	8.00
Excess		383,170	5.76			384,263	5.79
Total risk-based capital:
Capital level	$	953,277	14.33	%	$	954,457	14.37	%
Requirement to be well-capitalized		665,097	10.00			664,206	10.00
Excess		288,180	4.33			290,251	4.37

The Holding Company is subject to the same regulatory capital requirements as the Bank. As of June 30, 2023, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements. The CCB for the Holding Company at June 30, 2023 and December 31, 2022 was 5.07% and 5.25%, respectively.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	735,810	8.56	%	$	746,880	8.61	%
Requirement to be well-capitalized		429,905	5.00			433,607	5.00
Excess		305,905	3.56			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	689,876	10.38	%	$	698,258	10.52	%
Requirement to be well-capitalized		432,201	6.50			431,635	6.50
Excess		257,675	3.88			266,623	4.02
Tier I risk-based capital:
Capital level	$	735,810	11.07	%	$	746,880	11.25	%
Requirement to be well-capitalized		531,940	8.00			531,243	8.00
Excess		203,870	3.07			215,637	3.25
Total risk-based capital:
Capital level	$	963,840	14.50	%	$	975,709	14.69	%
Requirement to be well-capitalized		664,925	10.00			664,054	10.00
Excess		298,915	4.50			311,655	4.69

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New Authoritative Accounting Pronouncements

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

New Authoritative Accounting Pronouncements

14.     New Authoritative Accounting Pronouncements

Accounting Standards Adopted in 2023:

In March 2022, FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (Topic 326), which replaces the recognition and measurement guidance related to TDRs for creditors that have adopted ASC Topic 326 (commonly referred to as “CECL”) with the recognition and measurement guidance contained in Accounting Standards Codification (“ASC”) 310-20, to determine whether a modification results in a new loan or a continuation of an existing loan. This ASU also enhances disclosures about loan modifications for borrowers who are experiencing financial difficulty. The guidance also requires public business entities to present gross write-offs by year of origination in their vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this ASU should be applied on a prospective basis; however, institutions have the option to apply a modified retrospective transition method as it relates to the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The ASU was adopted on January 1, 2023 without material impact on our business operations or to our consolidated financial statements.

In March 2022, the FASB issued ASU 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method”, which expanded the current last-of-layer method to allow multiple hedged layers of a single closed portfolio and allow hedge accounting to be achieved using different types of derivatives and layering techniques, including the use of amortizing swaps with clarification that such a trade would be viewed as being a single layer. Under this expanded scope, both prepayable and nonrepayable financial assets may be included in a single closed portfolio hedge. This update also provides clarifications to breach requirements and disclosures. As a result of these changes, the last-of-

layer method has been renamed the portfolio layer method. No cumulative-effect adjustment to the opening balance of retained earnings was required upon adoption of these amendments. The Company did not have any portfolio layer or last of layer hedges prior to the first quarter of 2023. The amendments related to disclosures were applied on a prospective basis. The ASU was adopted in the first quarter of 2023 – see Notes 4 (“Securities”), 5 (“Loans”) and 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements for more information regarding the impact to our consolidated financial statements.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Earnings Per Share

Earnings per common share have been computed based on the following:

	For the three months ended						For the six months ended
	June 30,						June 30,
	2023			2022			2023			2022
	(Dollars in thousands, except per share data)
Net income, as reported	$	8,628		$	25,035		$	13,786		$	43,254
Divided by:
Weighted average common shares outstanding (1)		30,090			30,937			30,177			31,095
Basic earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Diluted earnings per common share	$	0.29		$	0.81		$	0.46		$	1.39
Dividend Payout ratio		75.9	%		27.2	%		95.7	%		31.7	%

(1) For the three and six months ended June 30, 2023, and 2022, there were no common stock equivalents that were anti-dilutive.

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Securities (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of portfolio of securities

The following table summarizes the Company’s portfolio of securities held-to-maturity on June 30, 2023:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,548	$	57,326	$	—	$	9,222
Total municipals		66,548		57,326		—		9,222
FNMA		7,865		7,011		—		854
Total mortgage-backed securities		7,865		7,011		—		854
Allowance for credit losses		(1,079)		—		—		—
Total	$	73,334	$	64,337	$	—	$	10,076

The following table summarizes the Company’s portfolio of securities held-to-maturity on December 31, 2022:

					Gross		Gross
	Amortized				Unrecognized		Unrecognized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Municipals	$	66,936	$	55,561	$	—	$	11,375
Total municipals		66,936		55,561		—		11,375
FNMA		7,875		6,989		—		886
Total mortgage-backed securities		7,875		6,989		—		886
Allowance for credit losses		(1,100)		—		—		—
Total	$	73,711	$	62,550	$	—	$	12,261

The following table summarizes the Company’s portfolio of securities available for sale on June 30, 2023:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,339	$	81,290	$	151	$	2,200
Corporate		173,095		150,602		—		22,493
Mutual funds		11,346		11,346		—		—
Collateralized loan obligations		262,471		258,973		58		3,556
Other		1,434		1,434		—		—
Total other securities		531,685		503,645		209		28,249
REMIC and CMO		168,675		140,161		—		28,514
GNMA		8,861		7,079		1		1,783
FNMA		165,064		141,717		—		23,347
FHLMC		92,810		76,954		—		15,856
Total mortgage-backed securities		435,410		365,911		1		69,500
Total Securities excluding portfolio layer adjustments		967,095		869,556		210		97,749
Unallocated portfolio layer basis adjustments (1)		(5,504)		n/a		—		(5,504)
Total securities available for sale	$	961,591	$	869,556	$	210	$	92,245

(1) Represents the amount of portfolio layer method basis adjustments related to available for sale (“AFS”) securities hedged in a closed portfolio. Under GAAP portfolio layer method basis adjustments are not allocated to individual securities, however, the amounts impact the unrealized gains or losses for the individual securities being hedged. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

The following table summarizes the Company’s portfolio of securities available for sale on December 31, 2022:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
U.S. government agencies	$	83,720	$	81,103	$	2	$	2,619
Corporate		146,430		131,766		—		14,664
Mutual funds		11,211		11,211		—		—
Collateralized loan obligations		129,684		125,478		—		4,206
Other		1,516		1,516		—		—
Total other securities		372,561		351,074		2		21,489
REMIC and CMO		175,712		148,414		—		27,298
GNMA		9,193		7,317		3		1,879
FNMA		172,690		148,265		—		24,425
FHLMC		96,725		80,287		—		16,438
Total mortgage-backed securities		454,320		384,283		3		70,040
Total securities available for sale	$	826,881	$	735,357	$	5	$	91,529

Schedule of amortized cost and fair value of the Company's securities classified as held-to-maturity and available for sale

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due after ten years	$	66,548	$	57,326
Total other securities		66,548		57,326
Mortgage-backed securities		7,865		7,011
		74,413		64,337
Allowance for credit losses		(1,079)		-
Total securities held-to-maturity	$	73,334	$	64,337

	Amortized
Securities available for sale (1):	Cost		Fair Value
	(In thousands)
Due in one year or less	$	59,888	$	58,498
Due after one year through five years		74,823		69,033
Due after five years through ten years		255,416		235,696
Due after ten years		130,212		129,072
Total other securities		520,339		492,299
Mutual funds		11,346		11,346
Mortgage-backed securities		435,410		365,911
Total securities available for sale	$	967,095	$	869,556

Schedule of securities with gross unrealized losses and their fair value

	At June 30, 2023
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	57,326	$	9,222	$	—	$	—	$	57,326	$	9,222
Total other securities	3		57,326		9,222		—		—		57,326		9,222
FNMA	1		7,011		854		—		—		7,011		854
Total mortgage-backed securities	1		7,011		854		—		—		7,011		854
Total	4	$	64,337	$	10,076	$	—	$	—	$	64,337	$	10,076
Available for sale securities (1)
U.S. Government Agencies & Treasury	8	$	73,794	$	2,200	$	5,437	$	24	$	68,357	$	2,176
Corporate	26		150,602		22,493		46,412		6,748		104,190		15,745
CLO	31		229,211		3,556		104,188		1,004		125,023		2,552
Total other securities	65		453,607		28,249		156,037		7,776		297,570		20,473
REMIC and CMO	47		139,882		28,514		940		52		138,942		28,462
GNMA	10		6,952		1,783		97		1		6,855		1,782
FNMA	48		141,717		23,347		7,493		399		134,224		22,948
FHLMC	18		76,954		15,856		10,457		751		66,497		15,105
Total mortgage-backed securities	123		365,505		69,500		18,987		1,203		346,518		68,297
Total	188	$	819,112	$	97,749	$	175,024	$	8,979	$	644,088	$	88,770

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $5.5 million related to AFS securities hedged in a closed portfolio totaling at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

	At December 31, 2022
		Total				Less than 12 months				12 months or more
				Unrealized				Unrealized				Unrealized
	Count	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals	3	$	55,561	$	11,375	$	55,561	$	11,375	$	—	$	—
Total other securities	3		55,561		11,375		55,561		11,375		—		—
FNMA	1		6,989		886		6,989		886		—		—
Total mortgage-backed securities	1		6,989		886		6,989		886		—		—
Total	4	$	62,550	$	12,261	$	62,550	$	12,261	$	—	$	—
Available for sale securities
U.S. government agencies	7	$	77,856	$	2,619	$	77,059	$	2,517	$	797	$	102
Corporate	20		131,766		14,664		45,447		3,553		86,319		11,111
CLO	19		125,478		4,206		95,518		2,916		29,960		1,290
Total other securities	46		335,100		21,489		218,024		8,986		117,076		12,503
REMIC and CMO	47		148,120		27,298		40,911		3,457		107,209		23,841
GNMA	8		7,133		1,879		64		—		7,069		1,879
FNMA	47		148,229		24,425		38,296		3,871		109,933		20,554
FHLMC	18		80,287		16,438		24,838		2,397		55,449		14,041
Total mortgage-backed securities	120		383,769		70,040		104,109		9,725		279,660		60,315
Total	166	$	718,869	$	91,529	$	322,133	$	18,711	$	396,736	$	72,818

Schedule of allowance for credit losses for debt securities held-to-maturity

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity.

	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
		(In thousands)
Beginning balance	$	1,087	$	986	$	1,100	$	862
(Benefit) provision		(8)		99		(21)		223
Allowance for credit losses	$	1,079	$	1,085	$	1,079	$	1,085

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Loans (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of composition of loans

		June 30,		December 31,
	2023		2022
	(In thousands)
Multi-family residential	$	2,593,955	$	2,601,384
Commercial real estate		1,917,749		1,913,040
One-to-four family ― mixed-use property		542,368		554,314
One-to-four family ― residential		230,055		241,246
Construction		57,325		70,951
Small Business Administration		22,404		23,275
Commercial business and other		1,466,358		1,521,548
Net unamortized premiums and unearned loan fees		8,836		9,011
Total loans, net of fees and costs excluding portfolio layer basis adjustments		6,839,050		6,934,769
Unallocated portfolio layer basis adjustments (1)		(6,625)		—
Total loans, net of fees and costs	$	6,832,425	$	6,934,769

Schedule of loans modifications made to borrowers

	For the three and six months ended, June 30, 2023
(Dollars in thousands)	Other-than-insignificant Payment Delay
Loan Modifications Made to Borrowers Experiencing Financial Difficulty	Number		Amortized Cost Basis	% of Total Class of Financing Receivable		Financial Effect
Small Business Administration	1	$	1,490	6.7	%	Provided twelve month payment deferral to be collected at maturity.
Total	1	$	1,490

Schedule of financing receivable modified past due

		Payment Status of Borrowers Experiencing Financial Difficulty (Amortized Cost Basis)
(In thousands)		Current		30-89 Days Past Due		90+ Days Past Due		Total Modified
Small Business Administration	$	1,490	$	—	$	—	$	1,490
Total	$	1,490	$	—	$	—	$	1,490

Summary of aging analysis of amortized cost basis of loans

	June 30, 2023
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans (1)
Multi-family residential	$	2,504	$	—	$	3,600	$	6,104	$	2,591,360	$	2,597,464
Commercial real estate		—		—		—		—		1,916,994		1,916,994
One-to-four family - mixed-use property		773		—		797		1,570		543,652		545,222
One-to-four family - residential		2,694		173		4,632		7,499		223,716		231,215
Construction		—		—		—		—		57,205		57,205
Small Business Administration		325		—		1,124		1,449		20,864		22,313
Commercial business and other		494		5,234		5,279		11,007		1,457,630		1,468,637
Total	$	6,790	$	5,407	$	15,432	$	27,629	$	6,811,421	$	6,839,050

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

	December 31, 2022
					Greater
	30 - 59 Days		60 - 89 Days		than		Total Past
(In thousands)	Past Due		Past Due		90 Days		Due		Current		Total Loans
Multi-family residential	$	1,475	$	1,787	$	3,547	$	6,809	$	2,598,363	$	2,605,172
Commercial real estate		2,561		—		254		2,815		1,912,083		1,914,898
One-to-four family - mixed-use property		3,721		—		797		4,518		552,777		557,295
One-to-four family - residential		2,734		—		3,953		6,687		235,793		242,480
Construction		—		—		2,600		2,600		68,224		70,824
Small Business Administration		329		—		950		1,279		21,914		23,193
Commercial business and other		7,636		16		10,324		17,976		1,502,931		1,520,907
Total	$	18,456	$	1,803	$	22,425	$	42,684	$	6,892,085	$	6,934,769

Schedule of TDR loan modifications

	For the three months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Commercial business and other	2	$	2,453	Two loans had amortization extensions
Total	2	$	2,453

	For the six months ended,
	June 30, 2022
(Dollars in thousands)	Number		Balance	Modification description
Small Business Administration	1	$	271	Loan amortization extension.
Commercial business and other	4		5,222	One loan received a below market interest rate and three loans had an amortization extension
Total	5	$	5,493

Schedule of non-accrual loans at amortized cost with no related allowance and interest income recognized for loans ninety days or more past due and still accruing

	At or for the six months ended June 30, 2023
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	3,547	$	3,600	$	3,600	$	2	$	—
Commercial real estate		254		—		—		—		—
One-to-four family - mixed-use property		1,045		797		797		—		—
One-to-four family - residential		3,953		4,632		4,632		—		—
Small Business Administration		950		1,124		1,124		—		—
Commercial business and other		20,193		8,287		3,585		16		—
Total	$	29,942	$	18,440	$	13,738	$	18	$	—

	At or for the year ended December 31, 2022
(In thousands)		Non-accrual amortized cost beginning of the reporting period		Non-accrual amortized cost end of the reporting period		Non-accrual with no related allowance		Interest income recognized		Loans ninety days or more past due and still accruing
Multi-family residential	$	2,652	$	3,547	$	3,547	$	—	$	—
Commercial real estate		640		254		254		—		—
One-to-four family - mixed-use property (1)		1,582		1,045		1,045		—		—
One-to-four family - residential		7,483		3,953		3,953		—		—
Small Business Administration		952		950		950		—		—
Construction		—		—		—		—		2,600
Commercial business and other (1)		1,945		20,193		3,291		171		—
Total	$	15,254	$	29,942	$	13,040	$	171	$	2,600

(1) Included in the above analysis are non-accrual performing TDR one-to-four family – mixed-use property totaling $0.3 million at December 31, 2022. Commercial business and other contains a non-accrual performing TDR totaling less than $0.1 million at December 31, 2022.

Summary of interest foregone on non-accrual loans and loans classified as TDR

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	474	$	588	$	980	$	960
Less: Interest income included in the results of operations		14		282		18		437
Total foregone interest	$	460	$	306	$	962	$	523

Summary of activity in the allowance for loan losses

	June 30, 2023
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	9,041	$	7,671	$	1,710	$	727	$	152	$	2,169	$	—	$	17,259	$	38,729
Charge-offs		—		(8)		—		(6)		—		(1)		—		(1,716)		(1,731)
Recoveries		—		—		—		2		—		159		—		10		171
Provision (benefit)		677		543		(95)		(69)		(20)		(165)		—		553		1,424
Ending balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	—	$	16,106	$	38,593

	June 30, 2022
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	8,561	$	7,716	$	1,864	$	766	$	268	$	1,837	$	—	$	16,421	$	37,433
Charge-offs		—		—		—		—		—		(26)		—		(24)		(50)
Recoveries		1		—		—		2		—		14		435		99		551
Provision (benefit)		843		727		95		98		32		293		(435)		(163)		1,490
Ending balance	$	9,405	$	8,443	$	1,959	$	866	$	300	$	2,118	$	—	$	16,333	$	39,424

	June 30, 2023
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	9,552	$	8,184	$	1,875	$	901	$	261	$	2,198	$	—	$	17,471	$	40,442
Charge-offs		—		(8)		—		(12)		—		(7)		—		(11,002)		(11,029)
Recoveries		1		—		—		44		—		171		—		19		235
Provision (benefit)		165		30		(260)		(279)		(129)		(200)		—		9,618		8,945
Ending balance	$	9,718	$	8,206	$	1,615	$	654	$	132	$	2,162	$	—	$	16,106	$	38,593

	June 30, 2022
					One-to-four
					family -		One-to-four								Commercial
	Multi-family		Commercial		mixed-use		family -		Construction		Small Business		Taxi		business and
(In thousands)	residential		real estate		property		residential		loans		Administration		medallion		other		Total
Beginning balance	$	8,185	$	7,158	$	1,755	$	784	$	186	$	1,209	$	—	$	17,858	$	37,135
Charge-offs		—		—		—		—		—		(1,054)		—		(32)		(1,086)
Recoveries		1		—		—		4		—		27		447		173		652
Provision (benefit)		1,219		1,285		204		78		114		1,936		(447)		(1,666)		2,723
Ending balance	$	9,405	$	8,443	$	1,959	$	866	$	300	$	2,118	$	—	$	16,333	$	39,424

Summary of risk category of mortgage and non-mortgage loans by loan portfolio segments and class of loans by year of origination

	For the year ended
														Revolving Loans		Revolving Loans
														Amortized Cost		converted to
(In thousands)		2023		2022		2021		2020		2019		Prior		Basis		term loans		Total
Multi-family Residential
Pass	$	89,777	$	477,475	$	283,598	$	218,950	$	308,790	$	1,178,081	$	3,564	$	—	$	2,560,235
Watch		—		892		—		2,860		—		28,246		—		—		31,998
Special Mention		—		—		—		—		—		873		—		—		873
Substandard		—		—		—		—		—		4,358		—		—		4,358
Total Multi-family Residential	$	89,777	$	478,367	$	283,598	$	221,810	$	308,790	$	1,211,558	$	3,564	$	—	$	2,597,464
Commercial Real Estate
Pass	$	59,422	$	325,928	$	178,735	$	149,773	$	222,077	$	948,085	$	—	$	—	$	1,884,020
Watch		—		1,960		1,484		—		9,570		19,783		—		—		32,797
Special Mention		—		—		—		—		—		177		—		—		177
Total Commercial Real Estate	$	59,422	$	327,888	$	180,219	$	149,773	$	231,647	$	968,045	$	—	$	—	$	1,916,994
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8
1-4 Family Mixed-Use Poperty
Pass	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	343,763	$	—	$	—	$	538,018
Watch		—		—		—		—		—		5,786		—		—		5,786
Special Mention		—		—		—		—		—		450		—		—		450
Substandard		—		—		—		—		—		968		—		—		968
Total 1-4 Family Mixed-Use Property	$	12,297	$	44,290	$	42,386	$	32,058	$	63,224	$	350,967	$	—	$	—	$	545,222
1-4 Family Residential
Pass	$	4,141	$	23,445	$	8,579	$	17,905	$	40,029	$	108,935	$	7,607	$	11,106	$	221,747
Watch		—		513		278		—		738		1,607		63		1,413		4,612
Special Mention		—		—		—		—		—		—		—		173		173
Substandard		—		—		—		—		—		4,240		—		443		4,683
Total 1-4 Family Residential	$	4,141	$	23,958	$	8,857	$	17,905	$	40,767	$	114,782	$	7,670	$	13,135	$	231,215
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	12	$	—	$	—	$	12
Construction
Pass	$	4,357	$	3	$	10,186	$	—	$	—		—	$	42,659	$	—	$	57,205
Total Construction	$	4,357	$	3	$	10,186	$	—	$	—	$	—	$	42,659	$	—	$	57,205
Small Business Administration
Pass	$	814	$	3,318	$	3,202	$	3,719	$	690	$	4,271	$	—	$	—	$	16,014
Watch		—		—		—		—		49		3,238		—		—		3,287
Special Mention		—		—		1,639		—		—		34		—		—		1,673
Substandard		—		—		176		—		—		1,163		—		—		1,339
Total Small Business Administration	$	814	$	3,318	$	5,017	$	3,719	$	739	$	8,706	$	—	$	—	$	22,313
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	7	$	—	$	—	$	7
Commercial Business
Pass	$	51,057	$	135,313	$	79,438	$	31,380	$	32,052	$	78,303	$	284,806	$	—	$	692,349
Watch		211		381		8,102		2,446		16,403		22,728		684		—		50,955
Special Mention		—		—		—		4,775		29		1,757		—		—		6,561
Substandard		—		2,368		—		—		28		3,624		3,375		—		9,395
Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Commercial Business	$	51,268	$	138,062	$	87,540	$	38,601	$	48,512	$	106,412	$	293,567	$	—	$	763,962
Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	10	$	9,267	$	—	$	10,960
Commercial Business - Secured by RE
Pass	$	21,100	$	179,716	$	132,943	$	107,726	$	40,571	$	147,446	$	—	$	—	$	629,502
Watch		—		—		—		—		610		59,556		—		—		60,166
Special Mention		—		—		—		—		14,800		—		—		—		14,800
Total Commercial Business - Secured by RE	$	21,100	$	179,716	$	132,943	$	107,726	$	55,981	$	207,002	$	—	$	—	$	704,468
Other
Pass	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Total Other	$	—	$	—	$	—	$	—	$	—	$	117	$	90	$	—	$	207
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	42	$	—	$	—	$	42
Total by Loan Type
Total Pass	$	242,965	$	1,189,488	$	739,067	$	561,511	$	707,433	$	2,809,001	$	338,726	$	11,106	$	6,599,297
Total Watch		211		3,746		9,864		5,306		27,370		140,944		747		1,413		189,601
Total Special Mention		—		—		1,639		4,775		14,829		3,291		—		173		24,707
Total Substandard		—		2,368		176		—		28		14,353		3,375		443		20,743
Total Doubtful		—		—		—		—		—		—		4,702		—		4,702
Total Loans (1)	$	243,176	$	1,195,602	$	750,746	$	571,592	$	749,660	$	2,967,589	$	347,550	$	13,135	$	6,839,050
Total Gross charge-offs	$	—	$	—	$	1,675	$	—	$	8	$	79	$	9,267	$	—	$	11,029

(1) The table above excludes the unallocated portfolio layer basis adjustments totaling $6.6 million related to loans hedged in a closed pool at June 30, 2023. See Note 11 (“Derivative Financial Instruments”) of the Notes to the Consolidated Financial Statements.

Summary of types of collateral-dependent loans by class of loans

	Collateral Type
	June 30, 2023				December 31, 2022
(In thousands)		Real Estate		Business Assets		Real Estate		Business Assets
Multi-family residential	$	3,600	$	—	$	3,547	$	—
Commercial real estate		—		—		254		—
One-to-four family - mixed-use property		797		—		1,045		—
One-to-four family - residential		4,632		—		3,953		—
Small Business Administration		—		1,124		—		950
Commercial business and other		—		8,287		2,853		17,340
Total	$	9,029	$	9,411	$	11,652	$	18,290

Summary of allowance for off balance sheet

	For the three months ended				For the six months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands)
Balance at beginning of period	$	885	$	1,589	$	970	$	1,209
(Benefit) provision		(72)		(145)		(157)		235
Allowance for Off-Balance Sheet - Credit losses (1)	$	813	$	1,444	$	813	$	1,444

(1) Included in “Other liabilities” on the Consolidated Statements of Financial Condition.

Nonperforming Financial Instruments [Member]

Notes Tables

Schedule of recorded investment for loans classified as TDR at amortized cost

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Commercial business and other	2	$	3,263
Total troubled debt restructurings that subsequently defaulted	2	$	3,263

Performing According to Restructured Terms [Member]

Notes Tables

Schedule of recorded investment for loans classified as TDR at amortized cost

	December 31, 2022
	Number	Amortized
(Dollars in thousands)	of contracts	Cost
Multi-family residential	6	$	1,673
Commercial real estate	1		7,572
One-to-four family - mixed-use property	4		1,222
One-to-four family - residential	1		253
Small Business Administration	1		242
Commercial business and other	3		855
Total performing	16	$	11,817

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Loans Held for Sale (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of loans sold

The following table shows loans sold during the periods indicated:

	For the three months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	2	$	2,074	$	—	$	14
Commercial	1		1,026		—		—
One-to-four family - mixed-use property	2		1,366		—		40
Total	5	$	4,466	$	—	$	54

	For the six months ended June 30, 2023
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Delinquent and non-performing loans
Multi-family residential	7	$	3,622	$	—	$	69
Commercial	3		1,867		(8)		—
One-to-four family - mixed-use property	3		1,553		—		39
Total	13	$	7,042	$	(8)	$	108

	For the three and six months ended June 30, 2022
(Dollars in thousands)	Loans sold	Proceeds		Net charge-offs		Net gain
Performing loans
Multi-family residential	4	$	10,136	$	—	$	—
Commercial	1		4,312		—		—
Total	5	$	14,448	$	—	$	—
Delinquent and non-performing loans
Commercial	1		3,687		—		73
One-to-four family - mixed-use property	1	$	430	$	—	$	—
Total	2	$	4,117	$	—	$	73

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases

Summary of supplemental balance sheet information related to leases

(Dollars in thousands)	June 30, 2023			December 31, 2022
Operating lease ROU asset	$	41,526		$	43,289
Operating lease liability	$	44,402		$	46,125
Weighted-average remaining lease term-operating leases		6.5 years			6.6 years
Weighted average discount rate-operating leases		3.2	%		2.9	%

Schedule of components of lease expense and cash flow information related to leases

		For the three months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	2,143	$	2,099
Operating lease cost	Other operating expenses		23		26
Short-term lease cost	Professional services, Occupancy and equipment and Other operating expenses		82		36
Variable lease cost	Occupancy and equipment		281		238
Total lease cost		$	2,529	$	2,399
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	2,261	$	2,343
Right-of-use assets obtained in exchange for new operating lease liabilities		$	1,198	$	—

		For the six months ended
(In thousands)	Line Item Presented	June 30, 2023		June 30, 2022
Lease Cost
Operating lease cost	Occupancy and equipment	$	4,442	$	4,198
Operating lease cost	Other operating expenses		46		48
Short-term lease cost	Professional Services, Occupancy and equipment and Other operating expenses		138		97
Variable lease cost	Occupancy and equipment		523		438
Total lease cost		$	5,149	$	4,781
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	4,655	$	4,769
Right-of-use assets obtained in exchange for new operating lease liabilities		$	2,044	$	47

Schedule of Minimum annual rental payments for Bank facilities due under non-cancelable leases

	Minimum Rental
	(In thousands)
Years ended December 31:
2023	$	5,218
2024		9,520
2025		8,850
2026		7,955
2027		3,865
Thereafter		13,689
Total minimum payments required		49,097
Less: implied interest		4,695
Total lease obligations	$	44,402

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Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Summary of the Company's RSU and PRSU awards

	RSU Awards			PRSU Awards
		Weighted-Average			Weighted-Average
		Grant-Date			Grant-Date
	Shares	Fair Value		Shares	Fair Value
Non-vested awards at December 31, 2022	275,588	$	22.30	68,800	$	20.90
Granted	235,850		19.84	79,050		19.99
Vested	(213,639)		21.19	(53,430)		19.94
Forfeited	(2,840)		22.14	—		—
Non-vested at June 30, 2023	294,959	$	21.14	94,420	$	20.68
Vested but unissued at June 30, 2023	249,780	$	20.78	142,065	$	20.80

Summary of the Phantom Stock Plan

Phantom Stock Plan	Shares	Fair Value		Weighted-Average Fair Value
Outstanding at December 31, 2022	158,410	$	19.38
Granted	18,403			$	18.12
Distributions	(858)			$	18.87
Outstanding at June 30, 2023	175,955	$	12.29
Vested at June 30, 2023	175,819	$	12.29

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Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of net expense for the pension and other postretirement benefit plans

	Three months ended				Six months ended
	June 30,				June 30,
(In thousands)	2023		2022		2023		2022
Employee Pension Plan:
Interest cost	$	203	$	138	$	406	$	276
Amortization of unrecognized loss		—		1		—		2
Expected return on plan assets		(277)		(258)		(554)		(515)
Net employee pension benefit (1)	$	(74)	$	(119)	$	(148)	$	(237)
Outside Director Pension Plan:
Service cost	$	2	$	3	$	4	$	6
Interest cost		14		12		29		23
Amortization of unrecognized gain		(40)		(7)		(80)		(14)
Net outside director pension (benefit) expense (2)	$	(24)	$	8	$	(47)	$	15
Other Postretirement Benefit Plans:
Service cost	$	40	$	67	$	80	$	134
Interest cost		96		69		191		139
Amortization of unrecognized gain		(60)		—		(120)		—
Amortization of past service credit		—		(7)		—		(14)
Net other postretirement expense (1)	$	76	$	129	$	151	$	259

(1) Reported in the Consolidated Statements of Income as part of salaries and employee benefits.

(2) Reported in the Consolidated Statements of Income as part of other operating expenses.

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Schedule of financial assets and financial liabilities

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at June 30,		at December 31,		For the three months ended				For the six months ended
Description	2023		2022		June 2023		June 2022		June 2023		June 2022
(In thousands)
Mortgage-backed securities	$	278	$	295	$	—	$	(8)	$	1	$	(12)
Other securities		12,781		12,728		(192)		(484)		(83)		(1,020)
Borrowed funds		47,777		50,507		486		3,025		2,995		1,756
Net gain from fair value adjustments					$	294	$	2,533	$	2,913	$	724

Schedule of assets and liabilities that are carried at fair value on recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
Assets:	(In thousands)
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	365,911	$	384,283	$	—	$	—	$	365,911	$	384,283
Other securities		11,346		11,211		490,865		338,347		1,434		1,516		503,645		351,074
Interest rate swaps		—		—		87,732		74,586		—		—		87,732		74,586
Total assets	$	11,346	$	11,211	$	944,508	$	797,216	$	1,434	$	1,516	$	957,288	$	809,943
Liabilities:
Borrowings	$	—	$	—	$	—	$	—	$	47,777	$	50,507	$	47,777	$	50,507
Interest rate swaps		—		—		16,510		18,407		—		—		16,510		18,407
Total liabilities	$	—	$	—	$	16,510	$	18,407	$	47,777	$	50,507	$	64,287	$	68,914

Schedule of assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3

	For the three months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,445	$	48,117	$	1,740	$	57,955
Net (loss) gain from fair value adjustment of financial assets (1)		(12)		—		(80)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(486)		—		(3,025)
Increase (decrease) in accrued interest		1		28		2		61
Change in unrealized (gains) losses included in other comprehensive loss		—		118		—		361
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

(1) Presented in the Consolidated Statements of Income under net gain (loss) from fair value adjustments.

	For the six months ended
	June 30, 2023				June 30, 2022
	Trust preferred		Junior subordinated		Trust preferred		Junior subordinated
	securities		debentures		securities		debentures
	(In thousands)
Beginning balance	$	1,516	$	50,507	$	1,695	$	56,472
Net (loss) gain from fair value adjustment of financial assets (1)		(83)		—		(35)		—
Net (gain) loss from fair value adjustment of financial liabilities (1)		—		(2,995)		—		(1,756)
Increase (decrease) in accrued interest		1		40		2		77
Change in unrealized (gains) losses included in other comprehensive loss		—		225		—		559
Ending balance	$	1,434	$	47,777	$	1,662	$	55,352
Changes in unrealized gains held at period end	$	—	$	1,961	$	—	$	2,775

Schedule of assets and liabilities that are carried at fair value on non-recurring basis

	Quoted Prices
	in Active Markets				Significant Other				Significant Other
	for Identical Assets				Observable Inputs				Unobservable Inputs				Total carried at fair value
	(Level 1)				(Level 2)				(Level 3)				on a non-recurring basis
	2023		2022		2023		2022		2023		2022		2023		2022
	(In thousands)
Assets:
Certain delinquent loans	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330
Total assets	$	—	$	—	$	—	$	—	$	7,037	$	18,330	$	7,037	$	18,330

Schedule of carrying amounts and estimated fair values of selected financial instruments

	June 30, 2023
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	160,053	$	160,053	$	160,053	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,865		7,011		—		7,011		—
Other securities		65,469		57,326		—		—		57,326
Securities available for sale
Mortgage-backed securities		365,911		365,911		—		365,911		—
Other securities		503,645		503,645		11,346		490,865		1,434
Loans		6,832,425		6,488,955		—		—		6,488,955
FHLB-NY stock		36,168		36,168		—		36,168		—
Accrued interest receivable		52,911		52,911		—		5,821		47,090
Interest rate swaps		87,732		87,732		—		87,732		—
Liabilities:
Deposits	$	6,723,690	$	6,663,332	$	4,490,994	$	2,172,338	$	—
Borrowed Funds		857,400		807,724		—		759,947		47,777
Accrued interest payable		9,234		9,234		—		9,234		—
Interest rate swaps		16,510		16,510		—		16,510		—

	December 31, 2022
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash and due from banks	$	151,754	$	151,754	$	151,754	$	—	$	—
Securities held-to-maturity
Mortgage-backed securities		7,875		6,989		—		6,989		—
Other securities		65,836		55,561		—		—		55,561
Securities available for sale
Mortgage-backed securities		384,283		384,283		—		384,283		—
Other securities		351,074		351,074		11,211		338,347		1,516
Loans		6,934,769		6,651,795		—		—		6,651,795
FHLB-NY stock		45,842		45,842		—		45,842		—
Accrued interest receivable		45,048		45,048		—		3,819		41,229
Interest rate swaps		74,856		74,856		—		74,856		—
Liabilities:
Deposits	$	6,485,342	$	6,453,978	$	4,959,004	$	1,494,974	$	—
Borrowed Funds		1,052,973		1,027,370		—		976,863		50,507
Accrued interest payable		10,034		10,034		—		10,034		—
Interest rate swaps		18,407		18,407		—		18,407		—

Fair Value, Measurements, Nonrecurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	At June 30, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	5,776	Sales approach	Adjustment to sales comparison value	-16.9% to 0.0	%	-2.2	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	11.0	%
Certain delinquent loans	$	1,261	Discounted Cashflow	Discount Rate	4.3% to 9.2	%	9.0	%
				Probability of Default	29.0% to 35.0	%	29.3	%

	At December 31, 2022
	Fair Value		Valuation Technique	Unobservable Input	Range		Weighted Average
	(Dollars in thousands)
Assets:
Certain delinquent loans	$	18,189	Sales approach	Adjustment to sales comparison value	-20.0% to 0.0	%	-1.3	%
				Reduction for planned expedited disposal	10.0% to 15.0	%	13.6	%
Certain delinquent loans	$	141	Discounted Cashflow	Discount Rate	4.3	%	4.3	%
				Probability of Default	35.0	%	35.0	%

Fair Value, Measurements, Recurring [Member]

Notes Tables

Schedule of quantitative information about Level 3

	June 30, 2023
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,434	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%
Liabilities:
Junior subordinated debentures	$	47,777	Discounted cash flows	Spread over 3-month SOFR	n/a	4.3	%

	December 31, 2022
			Valuation	Input		Weighted
	Fair Value		Technique	Unobservable	Range	Average
	(Dollars in thousands)
Assets:
Trust preferred securities	$	1,516	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%
Liabilities:
Junior subordinated debentures	$	50,507	Discounted cash flows	Spread over 3-month Libor	n/a	3.6	%

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Summary of information regarding the Company's derivative financial instruments

	Assets				Liabilities
	Notional				Notional
	Amount		Fair Value (1)		Amount		Fair Value (1)
June 30, 2023	(In thousands)
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	921,500	$	35,655	$	-	$	-
Fair value hedges:
Interest rate swaps (loans and securities)		864,192		35,564		-		-
Non hedge:
Interest rate swaps (loans and deposits)		121,351		16,513		120,351		16,510
Total	$	1,907,043	$	87,732	$	120,351	$	16,510
December 31, 2022
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	700,750	$	31,716	$	170,750	$	210
Fair value hedges:
Interest rate swaps (loans)		273,607		24,673		-		-
Non hedge:
Interest rate swaps (loans)		110,598		18,197		110,598		18,197
Total	$	1,084,955	$	74,586	$	281,348	$	18,407

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

Schedule of fair value hedged items for the periods indicated

						Cumulative Amount
						of the Fair Hedging Adjustment
Line Item in the Consolidated Statement		Carrying Amount of the				Included in the Carrying Amount of
of Financial Condition in Which		Hedged				the Hedged
the Hedged Item Is Included		Assets/(Liabilities)				Assets/(Liabilities)
(In thousands)		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Loans
Multi-family residential	$	81,741	$	82,613	$	(10,094)	$	(10,480)
Commercial real estate		159,727		167,353		(14,686)		(15,442)
Total	$	241,468	$	249,966	$	(24,780)	$	(25,922)
Portfolio Layer
Loans held for Investment (1)	$	2,651,394	$	—	$	(6,625)	$	—
Securities available for sale (2)		294,931		—		(5,504)		—
Total	$	2,946,325	$	—	$	(12,129)	$	—

(1) Carrying amount represents the amortized cost. At June 30, 2023, the amortized cost of the portfolio layer method closed portfolio was $2.7 billion, of which $400 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $6.6 million.

(2) Carrying amount represents the fair value. At June 30, 2023, the fair value of the portfolio layer method closed portfolio was $295 million, of which $200 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $5.5 million.

Schedule of effect of derivative instruments on the Consolidated Statements of Income

		For the three months ended				For the six months ended
	Affected Line Item in the Statements	June 30,				June 30,
(In thousands)	Where Net Income is Presented	2023		2022		2023		2022
Financial Derivatives:
Interest rate swaps - fair value hedge (loans)	Interest and fees on loans	$	2,669	$	(886)	$	4,566	$	(2,321)
Interest rate swaps - fair value hedge (securities)	Interest and dividends on securities		788		—		846		—
Interest rate swaps - non hedge (municipal deposits)	Deposits		3		—		3		—
Interest rate swaps - cash flow hedge (short-term advances)	Other interest expense		1,922		(1,489)		3,343		(3,954)
Interest rate swaps - cash flow hedge (brokered deposits)	Deposits		4,958		104		7,825		49
Total net income (expense) from the effects of derivative instruments		$	10,340	$	(2,271)	$	16,583	$	(6,226)

Schedule of effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition

			Gross Amount		Net Amount
	Gross Amounts		Offset in Statement of		Presented in Statement of		Financial		Cash
(In thousands)	Recognized		Financial Condition		Financial Condition		Instruments		Collateral		Net Amount
June 30, 2023
Assets:
Interest rate swaps	$	87,732	$	—	$	87,732	$	—	$	(83,485)	$	4,247
Liabilities:
Interest rate swaps		16,510		—		16,510		—		—		16,510
December 31, 2022
Assets:
Interest rate swaps	$	74,586	$	—	$	74,586	$	—	$	(72,185)	$	2,401
Liabilities:
Interest rate swaps		18,407		—		18,407		—		—		18,407

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Schedule of changes in accumulated other comprehensive income (loss) by component

	For the three months ended June 30, 2023
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(59,119)	$	20,240	$	(344)	$	1,439	$	(37,784)
Other comprehensive income before reclassifications, net of tax		(7,349)		10,991		—		(81)		3,561
Amounts reclassified from accumulated other comprehensive income, net of tax		2,945		(4,672)		(69)		—		(1,796)
Net current period other comprehensive income, net of tax		(4,404)		6,319		(69)		(81)		1,765
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the three months ended June 30, 2022
	Unrealized Gains (Losses) on						Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(29,699)	$	13,345	$	(1,291)	$	2,141	$	(15,504)
Other comprehensive income before reclassifications, net of tax		(20,434)		3,285		—		(219)		(17,368)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		1,630		(22)		—		1,608
Net current period other comprehensive income (loss), net of tax		(20,434)		4,915		(22)		(219)		(15,760)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

	For the six months ended June 30, 2023
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(63,106)	$	25,380	$	(275)	$	1,513	$	(36,488)
Other comprehensive income before reclassifications, net of tax		(4,216)		8,799		—		(155)		4,428
Amounts reclassified from accumulated other comprehensive income, net of tax		3,799		(7,620)		(138)		—		(3,959)
Net current period other comprehensive income (loss), net of tax		(417)		1,179		(138)		(155)		469
Ending balance, net of tax	$	(63,523)	$	26,559	$	(413)	$	1,358	$	(36,019)

	For the six months ended June 30, 2022
	Unrealized Gains		Unrealized Gains
	(Losses) on		(Losses) on				Fair Value
	Available for Sale		Cash flow		Defined Benefit		Option Elected
	Securities		Hedges		Pension Items		on Liabilities		Total
	(In thousands)
Beginning balance, net of tax	$	(6,272)	$	(1,406)	$	(1,282)	$	2,276	$	(6,684)
Other comprehensive income before reclassifications, net of tax		(43,861)		16,177		—		(354)		(28,038)
Amounts reclassified from accumulated other comprehensive income, net of tax		—		3,489		(31)		—		3,458
Net current period other comprehensive income (loss), net of tax		(43,861)		19,666		(31)		(354)		(24,580)
Ending balance, net of tax	$	(50,133)	$	18,260	$	(1,313)	$	1,922	$	(31,264)

Schedule of amounts reclassified from accumulated other comprehensive income (loss) by component

For the three months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(4,266)		Interest and dividend income
		1,321		Provision for income taxes
	$	(2,945)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	6,785		Interest expense
		(2,113)		Provision for income taxes
	$	4,672
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	100	(1)	Other operating expenses
		(31)		Provision for income taxes
	$	69

For the three months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Loss Components	Comprehensive Loss			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(2,364)		Interest expense
		734		Provision for income taxes
	$	(1,630)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	6	(1)	Other operating expenses
Prior service credits benefit (expense)		7	(1)	Other operating expenses
		13		Total before tax
		9		Provision for income taxes
	$	22

For the six months ended June 30, 2023
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Fair Value hedges:
Interest rate swaps benefit (expense)	$	(5,504)		Interest and dividend income
		1,705		Provision for income taxes
	$	(3,799)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	11,040		Interest expense
		(3,420)		Provision for income taxes
	$	7,620
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	200	(1)	Other operating expense
		(62)		Provision for income taxes
	$	138

For the six months ended June 30, 2022
	Amounts Reclassified from
Details about Accumulated Other	Accumulated Other			Affected Line Item in the Statement
Comprehensive Income Components	Comprehensive Income			Where Net Income is Presented
(In thousands)
Cash flow hedges:
Interest rate swaps benefit (expense)	$	(5,087)		Interest expense
		1,598		Provision for income taxes
	$	(3,489)
Amortization of defined benefit pension items:
Actuarial losses benefit (expense)	$	12	(1)	Other operating expense
Prior service credits benefit (expense)		14	(1)	Other operating expense
		26		Total before tax
		5		Provision for income taxes
	$	31

(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 9 (“Pension and Other Postretirement Benefit Plans”) for additional information

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Regulatory Capital (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Summary of compliance with banking regulatory capital standards

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	915,247	10.67	%	$	915,628	10.56	%
Requirement to be well-capitalized		428,869	5.00			433,667	5.00
Excess		486,378	5.67			481,961	5.56
Common Equity Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		432,313	6.50			431,734	6.50
Excess		482,934	7.26			483,894	7.29
Tier I risk-based capital:
Capital level	$	915,247	13.76	%	$	915,628	13.79	%
Requirement to be well-capitalized		532,077	8.00			531,365	8.00
Excess		383,170	5.76			384,263	5.79
Total risk-based capital:
Capital level	$	953,277	14.33	%	$	954,457	14.37	%
Requirement to be well-capitalized		665,097	10.00			664,206	10.00
Excess		288,180	4.33			290,251	4.37

Holding Company

Notes Tables

Summary of compliance with banking regulatory capital standards

	June 30, 2023				December 31, 2022
			Percent of				Percent of
	Amount		Assets		Amount		Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	735,810	8.56	%	$	746,880	8.61	%
Requirement to be well-capitalized		429,905	5.00			433,607	5.00
Excess		305,905	3.56			313,273	3.61
Common Equity Tier I risk-based capital:
Capital level	$	689,876	10.38	%	$	698,258	10.52	%
Requirement to be well-capitalized		432,201	6.50			431,635	6.50
Excess		257,675	3.88			266,623	4.02
Tier I risk-based capital:
Capital level	$	735,810	11.07	%	$	746,880	11.25	%
Requirement to be well-capitalized		531,940	8.00			531,243	8.00
Excess		203,870	3.07			215,637	3.25
Total risk-based capital:
Capital level	$	963,840	14.50	%	$	975,709	14.69	%
Requirement to be well-capitalized		664,925	10.00			664,054	10.00
Excess		298,915	4.50			311,655	4.69

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Use of Estimates (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Notes to Financial Statements
Goodwill, Impairment Loss	$ 0	$ 0
Goodwill	$ 17,636	$ 17,636

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share
Net income	$ 8,628	$ 5,158	$ 25,035	$ 18,219	$ 13,786	$ 43,254
Weighted average common shares outstanding (in shares)	30,090		30,937		30,177	31,095
Basic earnings per common share (in dollars per share)	$ 0.29		$ 0.81		$ 0.46	$ 1.39
Diluted earnings per common share (in dollars per share)	$ 0.29		$ 0.81		$ 0.46	$ 1.39
Dividend payout ratio	75.90%		27.20%		95.70%	31.70%

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Earnings Per Share - Anti Dilutive (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0	0	0

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Securities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Allowance for credit loss	$ 0.0		$ 0.0
Accrued interest receivable on available-for-sale debt securities	5.9		5.9		$ 3.7
Proceeds from Sale of Debt Securities, Available-for-sale	0.0	$ 0.0	0.0	$ 0.0
Held-to-maturity Securities
Specific reserve for outstanding balance of financing receivable in active forbearance	1.1		1.1		1.1
Accrued interest receivable on held-to-maturity securities	$ 0.1		$ 0.1		$ 0.1

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Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Securities, held-to-maturity, Amortized Cost	$ 74,413
Securities held-to-maturity, Fair Value	64,337		$ 62,550
Securities held-to-maturity, Gross Unrecognized Losses	10,076		12,261
Securities held-to-maturity, Allowance for credit losses	(1,079)	$ (1,087)	(1,100)	$ (1,085)	$ (986)	$ (862)
Securities held-to-maturity	73,334		73,711
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	967,095
Securities, available-for-sale, Unallocated portfolio layer basis adjustments	(5,504)
Securities available-for-sale	961,591		826,881
Securities, available-for-sale, Fair Value	869,556		735,357
Securities available for sale, Gross Unrealized Gains	210		5
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	97,749
Securities available for sale, Gross Unrealized Losses	92,245		91,529
Other Securities [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	1,434
Securities available-for-sale			1,516
Securities, available-for-sale, Fair Value	1,434		1,516
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	0
Securities available for sale, Gross Unrealized Losses			0
US Government Agencies Debt Securities [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	83,339
Securities available-for-sale			83,720
Securities, available-for-sale, Fair Value	81,290		81,103
Securities available for sale, Gross Unrealized Gains	151		2
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	2,200
Securities available for sale, Gross Unrealized Losses			2,619
Corporate Debt Securities [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	173,095
Securities available-for-sale			146,430
Securities, available-for-sale, Fair Value	150,602		131,766
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	22,493
Securities available for sale, Gross Unrealized Losses			14,664
US States and Political Subdivisions Debt Securities [Member]
Securities, held-to-maturity, Amortized Cost	66,548		66,936
Securities held-to-maturity, Fair Value	57,326		55,561
Securities held-to-maturity, Gross Unrecognized Losses	9,222		11,375
Mutual Fund Debt Securities [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	11,346
Securities available-for-sale			11,211
Securities, available-for-sale, Fair Value	11,346		11,211
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	0
Securities available for sale, Gross Unrealized Losses			0
Collateralized Debt Obligations [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	262,471
Securities available-for-sale			129,684
Securities, available-for-sale, Fair Value	258,973		125,478
Securities available for sale, Gross Unrealized Gains	58		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	3,556
Securities available for sale, Gross Unrealized Losses			4,206
Other Debt Obligations
Securities, held-to-maturity, Amortized Cost	66,548		66,936
Securities held-to-maturity, Fair Value	57,326		55,561
Securities held-to-maturity, Gross Unrecognized Losses	9,222		11,375
Collateralized Mortgage Backed Securities
Securities, held-to-maturity, Amortized Cost	7,865		7,875
Securities held-to-maturity, Fair Value	7,011		6,989
Securities held-to-maturity, Gross Unrecognized Losses	854		886
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	435,410
Securities available-for-sale			454,320
Securities, available-for-sale, Fair Value	365,911		384,283
Securities available for sale, Gross Unrealized Gains	1		3
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	69,500
Securities available for sale, Gross Unrealized Losses			70,040
REMIC and CMO [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	168,675
Securities available-for-sale			175,712
Securities, available-for-sale, Fair Value	140,161		148,414
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	28,514
Securities available for sale, Gross Unrealized Losses			27,298
GNMA [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	8,861
Securities available-for-sale			9,193
Securities, available-for-sale, Fair Value	7,079		7,317
Securities available for sale, Gross Unrealized Gains	1		3
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	1,783
Securities available for sale, Gross Unrealized Losses			1,879
FNMA [Member]
Securities, held-to-maturity, Amortized Cost	7,865		7,875
Securities held-to-maturity, Fair Value	7,011		6,989
Securities held-to-maturity, Gross Unrecognized Losses	854		886
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	165,064
Securities available-for-sale			172,690
Securities, available-for-sale, Fair Value	141,717		148,265
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	23,347
Securities available for sale, Gross Unrealized Losses			24,425
FHLMC [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	92,810
Securities available-for-sale			96,725
Securities, available-for-sale, Fair Value	76,954		80,287
Securities available for sale, Gross Unrealized Gains	0		0
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	15,856
Securities available for sale, Gross Unrealized Losses			16,438
Available for Sale Securities Excluding Mortgage Backed Securities [Member]
Securities available-for-sale, Amortized Cost excluding portfolio layer adjustments	531,685
Securities available-for-sale			372,561
Securities, available-for-sale, Fair Value	503,645		351,074
Securities available for sale, Gross Unrealized Gains	209		2
Securities available-for-sale, Gross Unrealized Losses excluding portfolio layer adjustments	$ 28,249
Securities available for sale, Gross Unrealized Losses			$ 21,489

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Securities - Available-for-Sale and Held-to-Maturity by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Securities held-to-maturity, Amortized Cost, Due after ten years	$ 66,548
Securities, held-to-maturity, Amortized Cost	74,413
Securities held-to-maturity, Allowance for credit losses	(1,079)	$ (1,087)	$ (1,100)	$ (1,085)	$ (986)	$ (862)
Securities held-to-maturity	73,334		73,711
Securities held-to-maturity, Fair Value, Due after ten years	57,326
Debt Securities, Held-to-maturity, Fair Value, Total	64,337		62,550
Securities available-for-sale, Amortized Cost, Due in one year or less	59,888
Securities available-for-sale, Amortized Cost, Due after one years through five years	74,823
Securities available-for-sale, Amortized Cost, Due after five years through ten years	255,416
Securities available-for-sale, Amortized Cost, Due after ten years	130,212
Securities available-for-sale	967,095
Securities available for sale, Fair Value, Due in one year or less	58,498
Securities available for sale, Fair Value, Due after one years through five years	69,033
Securities available for sale, Fair Value, Due after five years through ten years	235,696
Securities available for sale, Fair Value, Due after ten years	129,072
Securities, available-for-sale, Fair Value	869,556		735,357
Basis adjustments	6,625
Designated as Hedging Instrument [Member] | Portfolio Layer Hedges on Closed Portfolio of Securities Available for Sale [Member]
Basis adjustments	5,500
Total Other Securities [Member]
Securities, held-to-maturity, Amortized Cost, With single maturity date	66,548
Securities held-to-maturity, Fair Value, With single maturity date	57,326
Securities available-for-sale, Amortized Cost, With single maturity date	520,339
Securities available-for-sale, Fair Value, With single maturity date	492,299
Collateralized Mortgage Backed Securities
Securities held-to-maturity, Amortized Cost, Without single maturity	7,865
Securities, held-to-maturity, Amortized Cost	7,865		7,875
Securities held-to-maturity, Fair Value, Without single maturity date	7,011
Debt Securities, Held-to-maturity, Fair Value, Total	7,011		6,989
Securities, available-for-sale, Amortized Cost, Without single maturity date	435,410
Securities available-for-sale	435,410
Securities available-for-sale, Fair Value, Without single maturity date	365,911
Securities, available-for-sale, Fair Value	365,911		384,283
Mutual Fund Debt Securities [Member]
Securities, available-for-sale, Amortized Cost, Without single maturity date	11,346
Securities available-for-sale	11,346
Securities available-for-sale, Fair Value, Without single maturity date	11,346
Securities, available-for-sale, Fair Value	$ 11,346		$ 11,211

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Securities - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	4	4
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 64,337	$ 62,550
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	10,076	12,261
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	62,550
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	$ 12,261
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	64,337
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 10,076
Securities have been in a continuous unrealized loss position, number of positions	188	166
Securities have been in a continuous unrealized loss position, fair value	$ 819,112	$ 718,869
Securities have been in a continuous unrealized loss position, unrealized losses	97,749	91,529
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	175,024	322,133
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	8,979	18,711
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	644,088	396,736
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 88,770	$ 72,818
Other Debt Obligations
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	3	3
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 57,326	$ 55,561
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	9,222	11,375
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	55,561
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	$ 11,375
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	57,326
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 9,222
Securities have been in a continuous unrealized loss position, number of positions	65	46
Securities have been in a continuous unrealized loss position, fair value	$ 453,607	$ 335,100
Securities have been in a continuous unrealized loss position, unrealized losses	28,249	21,489
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	156,037	218,024
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	7,776	8,986
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	297,570	117,076
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 20,473	$ 12,503
US States and Political Subdivisions Debt Securities [Member]
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	3	3
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 57,326	$ 55,561
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	9,222	11,375
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	55,561
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	$ 11,375
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	57,326
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 9,222
US Government Agencies Debt Securities [Member]
Securities have been in a continuous unrealized loss position, number of positions	8	7
Securities have been in a continuous unrealized loss position, fair value	$ 73,794	$ 77,856
Securities have been in a continuous unrealized loss position, unrealized losses	2,200	2,619
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	5,437	77,059
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	24	2,517
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	68,357	797
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 2,176	$ 102
Corporate Debt Securities [Member]
Securities have been in a continuous unrealized loss position, number of positions	26	20
Securities have been in a continuous unrealized loss position, fair value	$ 150,602	$ 131,766
Securities have been in a continuous unrealized loss position, unrealized losses	22,493	14,664
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	46,412	45,447
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	6,748	3,553
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	104,190	86,319
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 15,745	$ 11,111
Collateralized Loan Obligations [Member]
Securities have been in a continuous unrealized loss position, number of positions	31	19
Securities have been in a continuous unrealized loss position, fair value	$ 229,211	$ 125,478
Securities have been in a continuous unrealized loss position, unrealized losses	3,556	4,206
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	104,188	95,518
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	1,004	2,916
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	125,023	29,960
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 2,552	$ 1,290
Collateralized Mortgage Backed Securities
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	1	1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 7,011	$ 6,989
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	854	886
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	6,989
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	$ 886
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	7,011
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 854
Securities have been in a continuous unrealized loss position, number of positions	123	120
Securities have been in a continuous unrealized loss position, fair value	$ 365,505	$ 383,769
Securities have been in a continuous unrealized loss position, unrealized losses	69,500	70,040
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	18,987	104,109
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	1,203	9,725
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	346,518	279,660
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 68,297	$ 60,315
REMIC and CMO [Member]
Securities have been in a continuous unrealized loss position, number of positions	47	47
Securities have been in a continuous unrealized loss position, fair value	$ 139,882	$ 148,120
Securities have been in a continuous unrealized loss position, unrealized losses	28,514	27,298
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	940	40,911
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	52	3,457
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	138,942	107,209
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 28,462	$ 23,841
GNMA [Member]
Securities have been in a continuous unrealized loss position, number of positions	10	8
Securities have been in a continuous unrealized loss position, fair value	$ 6,952	$ 7,133
Securities have been in a continuous unrealized loss position, unrealized losses	1,783	1,879
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	97	64
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	1
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	6,855	7,069
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 1,782	$ 1,879
FNMA [Member]
Held-to-maturity securities have been in a continuous unrealized loss position, number of positions	1	1
Held-to-maturity securities have been in a continuous unrealized loss position, fair value	$ 7,011	$ 6,989
Held-to-maturity securities have been in a continuous unrealized loss position, unrealized loss	854	886
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, fair value	0	6,989
Held-to-maturity securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	0	$ 886
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, fair value	7,011
Held-to-maturity securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 854
Securities have been in a continuous unrealized loss position, number of positions	48	47
Securities have been in a continuous unrealized loss position, fair value	$ 141,717	$ 148,229
Securities have been in a continuous unrealized loss position, unrealized losses	23,347	24,425
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	7,493	38,296
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	399	3,871
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	134,224	109,933
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 22,948	$ 20,554
FHLMC [Member]
Securities have been in a continuous unrealized loss position, number of positions	18	18
Securities have been in a continuous unrealized loss position, fair value	$ 76,954	$ 80,287
Securities have been in a continuous unrealized loss position, unrealized losses	15,856	16,438
Securities have been in a continuous unrealized loss position, less than 12 months, fair value	10,457	24,838
Securities have been in a continuous unrealized loss position, less than 12 months, unrealized losses	751	2,397
Securities have been in a continuous unrealized loss position, 12 months or more, fair value	66,497	55,449
Securities have been in a continuous unrealized loss position, 12 months or more, unrealized losses	$ 15,105	$ 14,041

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Securities - Allowance for credit losses for debt securities held-to-maturity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Activity in the allowance for credit losses for debt securities held-to-maturity
Beginning balance	$ 1,087	$ 986	$ 1,100	$ 862
(Benefit) provision	(8)	99	(21)	223
Ending balance	$ 1,079	$ 1,085	$ 1,079	$ 1,085

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Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021
Allowance for credit losses - loans	$ 38,593	$ 39,424	$ 38,593	$ 39,424	$ 40,442	$ 38,729	$ 37,433	$ 37,135
Provision for credit losses	1,400	$ 1,500	$ 8,900	$ 2,700
Percentage of financing receivable non-performing loans			207.10%		124.90%
Percentage of financing receivable on total loans			0.57%		0.58%
Loans Receivable [Member]
Interest Receivable	$ 39,500		$ 39,500		$ 36,800

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Loans - Composition of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Loans:
Net unamortized premiums and unearned loan fees	$ 8,836	$ 9,011
Total loans, net of fees and costs excluding portfolio layer basis adjustments	6,839,050	6,934,769
Unallocated portfolio layer basis adjustments	(6,625)
Total loans, net of fees and costs	6,832,425	6,934,769
Multi-Family Residential
Loans:
Loans before allowance for credit losses, fee and costs	2,593,955	2,601,384
Commercial Real Estate
Loans:
Loans before allowance for credit losses, fee and costs	1,917,749	1,913,040
One-To-Four Family - Mixed Used Property
Loans:
Loans before allowance for credit losses, fee and costs	542,368	554,314
One-To-Four Family - Residential
Loans:
Loans before allowance for credit losses, fee and costs	230,055	241,246
Construction Portfolio Segment
Loans:
Loans before allowance for credit losses, fee and costs	57,325	70,951
Total loans, net of fees and costs excluding portfolio layer basis adjustments	57,205	70,824
Small Business Administration
Loans:
Loans before allowance for credit losses, fee and costs	22,404	23,275
Commercial Business and Other
Loans:
Loans before allowance for credit losses, fee and costs	$ 1,466,358	$ 1,521,548

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Loans - Loans Modifications Made to Borrowers and Payment Status (Details) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2022 contract	Jun. 30, 2023 USD ($) contract	Jun. 30, 2022 contract	Dec. 31, 2022 contract
Number of TDR loan modifications | contract	2		5
Nonperforming Financial Instruments [Member]
Number of TDR loan modifications | contract				2
Payment Deferral
Number of TDR loan modifications | contract		1
Amortized Cost Basis		$ 1,490
Payment Deferral | Current
Total modified payment status of borrowers		1,490
Payment Deferral | Total Past Due
Total modified payment status of borrowers		$ 1,490
Small Business Administration
Number of TDR loan modifications | contract			1
Small Business Administration | Payment Deferral
Number of TDR loan modifications | contract		1
Amortized Cost Basis		$ 1,490
Total Class of Financing Receivables, percentage		6.70%
Small Business Administration | Payment Deferral | Current
Total modified payment status of borrowers		$ 1,490
Small Business Administration | Payment Deferral | Total Past Due
Total modified payment status of borrowers		$ 1,490

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Loans - Loans Modified and Classified as TDR (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) contract	Jun. 30, 2022 USD ($) contract
Number of TDR loan modifications | contract	2	5
Balance | $	$ 2,453	$ 5,493
Commercial Business and Other
Number of TDR loan modifications | contract	2	4
Balance | $	$ 2,453	$ 5,222
Small Business Administration
Number of TDR loan modifications | contract		1
Balance | $		$ 271

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Loans - Troubled Debt Restructurings That Are Performing (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022 contract	Jun. 30, 2022 contract	Dec. 31, 2022 USD ($) contract
Number of contracts	2	5
Performing Financial Instruments [Member]
Number of contracts			16
Amortized Cost | $			$ 11,817
Multi-Family Residential | Performing Financial Instruments [Member]
Number of contracts			6
Amortized Cost | $			$ 1,673
Commercial Real Estate [Member] | Performing Financial Instruments [Member]
Number of contracts			1
Amortized Cost | $			$ 7,572
One-To-Four Family - Mixed Used Property | Performing Financial Instruments [Member]
Number of contracts			4
Amortized Cost | $			$ 1,222
One-To-Four Family - Residential | Performing Financial Instruments [Member]
Number of contracts			1
Amortized Cost | $			$ 253
Small Business Administration
Number of contracts		1
Small Business Administration | Performing Financial Instruments [Member]
Number of contracts			1
Amortized Cost | $			$ 242
Commercial Business and Other
Number of contracts	2	4
Commercial Business and Other | Performing Financial Instruments [Member]
Number of contracts			3
Amortized Cost | $			$ 855

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Loans - Troubled Debt Restructurings That Are Not Performing (Details) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022 contract	Jun. 30, 2022 contract	Dec. 31, 2022 USD ($) contract item
Number of contracts | contract	2	5
Nonperforming Financial Instruments [Member]
Number of contracts | contract			2
Amortized Cost | $			$ 3,263
Commercial Business and Other Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Number of contracts | item			2
Amortized Cost | $			$ 3,263

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Loans - Non-Accrual at Amortized Cost (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	$ 29,942	$ 15,254
Non-accrual amortized cost end of the reporting period	18,440	29,942
Non-accrual with no related allowance	13,738	13,040
Interest income recognized	18	171
Loans ninety days or more past due and still accruing		2,600
Multi-family Residential Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	3,547	2,652
Non-accrual amortized cost end of the reporting period	3,600	3,547
Non-accrual with no related allowance	3,600	3,547
Interest income recognized	2
Commercial Real Estate [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	254	640
Non-accrual amortized cost end of the reporting period		254
Non-accrual with no related allowance		254
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	1,045	1,582
Non-accrual amortized cost end of the reporting period	797	1,045
Non-accrual with no related allowance	797	1,045
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Performing Financial Instruments [Member]
Non-accrual loans		300
One-To-Four Family - Residential Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	3,953	7,483
Non-accrual amortized cost end of the reporting period	4,632	3,953
Non-accrual with no related allowance	4,632	3,953
Construction Portfolio Segment
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Loans ninety days or more past due and still accruing		2,600
Small Business Administration Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	950	952
Non-accrual amortized cost end of the reporting period	1,124	950
Non-accrual with no related allowance	1,124	950
Commercial Business and Other Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Nonaccrual
Non-accrual amortized cost beginning of the reporting period	20,193	1,945
Non-accrual amortized cost end of the reporting period	8,287	20,193
Non-accrual with no related allowance	3,585	3,291
Interest income recognized	$ 16	171
Commercial Business and Other Portfolio Segment [Member] | Performing Financial Instruments [Member]
Non-accrual loans		$ 100

XML

Loans - Foregone on Non-accrual Loans and Loans Classified as TDR (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Summary of Interest Foregone on Non-accrual Loans and Loans Classified as TDR
Interest income that would have been recognized had the loans performed in accordance with their original terms	$ 474	$ 588	$ 980	$ 960
Less: Interest income included in the results of operations	14	282	18	437
Total foregone interest	$ 460	$ 306	$ 962	$ 523

XML

Loans - Age Analysis of Recorded Investment in Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Total Loans	$ 6,839,050	$ 6,934,769
30 to 59 Days Past Due
Total Loans	6,790	18,456
60 to 89 Days Past Due
Total Loans	5,407	1,803
Greater than 90 Days Past Due
Total Loans	15,432	22,425
Total Past Due
Total Loans	27,629	42,684
Current
Total Loans	6,811,421	6,892,085
Multi-family Residential Portfolio Segment [Member]
Total Loans	2,597,464	2,605,172
Multi-family Residential Portfolio Segment [Member] | 30 to 59 Days Past Due
Total Loans	2,504	1,475
Multi-family Residential Portfolio Segment [Member] | 60 to 89 Days Past Due
Total Loans	0	1,787
Multi-family Residential Portfolio Segment [Member] | Greater than 90 Days Past Due
Total Loans	3,600	3,547
Multi-family Residential Portfolio Segment [Member] | Total Past Due
Total Loans	6,104	6,809
Multi-family Residential Portfolio Segment [Member] | Current
Total Loans	2,591,360	2,598,363
Commercial Real Estate [Member]
Total Loans	1,916,994	1,914,898
Commercial Real Estate [Member] | 30 to 59 Days Past Due
Total Loans	0	2,561
Commercial Real Estate [Member] | 60 to 89 Days Past Due
Total Loans	0	0
Commercial Real Estate [Member] | Greater than 90 Days Past Due
Total Loans	0	254
Commercial Real Estate [Member] | Total Past Due
Total Loans	0	2,815
Commercial Real Estate [Member] | Current
Total Loans	1,916,994	1,912,083
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Total Loans	545,222	557,295
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | 30 to 59 Days Past Due
Total Loans	773	3,721
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | 60 to 89 Days Past Due
Total Loans	0	0
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Greater than 90 Days Past Due
Total Loans	797	797
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Total Past Due
Total Loans	1,570	4,518
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Current
Total Loans	543,652	552,777
One-To-Four Family - Residential Portfolio Segment [Member]
Total Loans	231,215	242,480
One-To-Four Family - Residential Portfolio Segment [Member] | 30 to 59 Days Past Due
Total Loans	2,694	2,734
One-To-Four Family - Residential Portfolio Segment [Member] | 60 to 89 Days Past Due
Total Loans	173	0
One-To-Four Family - Residential Portfolio Segment [Member] | Greater than 90 Days Past Due
Total Loans	4,632	3,953
One-To-Four Family - Residential Portfolio Segment [Member] | Total Past Due
Total Loans	7,499	6,687
One-To-Four Family - Residential Portfolio Segment [Member] | Current
Total Loans	223,716	235,793
Construction Portfolio Segment
Total Loans	57,205	70,824
Construction Portfolio Segment | 30 to 59 Days Past Due
Total Loans	0	0
Construction Portfolio Segment | 60 to 89 Days Past Due
Total Loans	0	0
Construction Portfolio Segment | Greater than 90 Days Past Due
Total Loans	0	2,600
Construction Portfolio Segment | Total Past Due
Total Loans	0	2,600
Construction Portfolio Segment | Current
Total Loans	57,205	68,224
Small Business Administration Portfolio Segment [Member]
Total Loans	22,313	23,193
Small Business Administration Portfolio Segment [Member] | 30 to 59 Days Past Due
Total Loans	325	329
Small Business Administration Portfolio Segment [Member] | 60 to 89 Days Past Due
Total Loans	0	0
Small Business Administration Portfolio Segment [Member] | Greater than 90 Days Past Due
Total Loans	1,124	950
Small Business Administration Portfolio Segment [Member] | Total Past Due
Total Loans	1,449	1,279
Small Business Administration Portfolio Segment [Member] | Current
Total Loans	20,864	21,914
Commercial Business and Other Portfolio Segment [Member]
Total Loans	1,468,637	1,520,907
Commercial Business and Other Portfolio Segment [Member] | 30 to 59 Days Past Due
Total Loans	494	7,636
Commercial Business and Other Portfolio Segment [Member] | 60 to 89 Days Past Due
Total Loans	5,234	16
Commercial Business and Other Portfolio Segment [Member] | Greater than 90 Days Past Due
Total Loans	5,279	10,324
Commercial Business and Other Portfolio Segment [Member] | Total Past Due
Total Loans	11,007	17,976
Commercial Business and Other Portfolio Segment [Member] | Current
Total Loans	$ 1,457,630	$ 1,502,931

XML

Loans - Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 38,729	$ 37,433	$ 40,442	$ 37,135
Charge-offs	(1,731)	(50)	(11,029)	(1,086)
Recoveries	171	551	235	652
Provision (benefit)	1,424	1,490	8,945	2,723
Ending balance	38,593	39,424	38,593	39,424
Multi-family Residential Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	9,041	8,561	9,552	8,185
Recoveries		1	1	1
Provision (benefit)	677	843	165	1,219
Ending balance	9,718	9,405	9,718	9,405
Commercial Real Estate [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	7,671	7,716	8,184	7,158
Charge-offs	(8)		(8)
Provision (benefit)	543	727	30	1,285
Ending balance	8,206	8,443	8,206	8,443
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,710	1,864	1,875	1,755
Provision (benefit)	(95)	95	(260)	204
Ending balance	1,615	1,959	1,615	1,959
One-To-Four Family - Residential Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	727	766	901	784
Charge-offs	(6)		(12)
Recoveries	2	2	44	4
Provision (benefit)	(69)	98	(279)	78
Ending balance	654	866	654	866
Construction Portfolio Segment
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	152	268	261	186
Provision (benefit)	(20)	32	(129)	114
Ending balance	132	300	132	300
Small Business Administration Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,169	1,837	2,198	1,209
Charge-offs	(1)	(26)	(7)	(1,054)
Recoveries	159	14	171	27
Provision (benefit)	(165)	293	(200)	1,936
Ending balance	2,162	2,118	2,162	2,118
Taxi Medallion Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Recoveries		435		447
Provision (benefit)		(435)		(447)
Commercial Business and Other Portfolio Segment [Member]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	17,259	16,421	17,471	17,858
Charge-offs	(1,716)	(24)	(11,002)	(32)
Recoveries	10	99	19	173
Provision (benefit)	553	(163)	9,618	(1,666)
Ending balance	$ 16,106	$ 16,333	$ 16,106	$ 16,333

XML

Loans - Risk Category of Mortgage and Non-mortgage Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
2023	$ 243,176		$ 243,176
2022	1,195,602		1,195,602
2021	750,746		750,746
2020	571,592		571,592
2019	749,660		749,660
Prior	2,967,589		2,967,589
Revolving Loans Amortized Cost Basis	347,550		347,550
Revolving Loans converted to term loans	13,135		13,135
Total Loans	6,839,050		6,839,050		$ 6,934,769
Gross charge-offs
2021			1,675
2019			8
Prior			79
Revolving Loans Amortized Cost Basis			9,267
Charge-offs	1,731	$ 50	11,029	$ 1,086
Basis adjustments	6,625		6,625
Portfolio Layer Hedges on Closed Portfolio of Loans [Member] | Designated as Hedging Instrument [Member]
Gross charge-offs
Basis adjustments	6,600		6,600
Pass
2023	242,965		242,965
2022	1,189,488		1,189,488
2021	739,067		739,067
2020	561,511		561,511
2019	707,433		707,433
Prior	2,809,001		2,809,001
Revolving Loans Amortized Cost Basis	338,726		338,726
Revolving Loans converted to term loans	11,106		11,106
Total Loans	6,599,297		6,599,297
Watch
2023	211		211
2022	3,746		3,746
2021	9,864		9,864
2020	5,306		5,306
2019	27,370		27,370
Prior	140,944		140,944
Revolving Loans Amortized Cost Basis	747		747
Revolving Loans converted to term loans	1,413		1,413
Total Loans	189,601		189,601
Special Mention
2021	1,639		1,639
2020	4,775		4,775
2019	14,829		14,829
Prior	3,291		3,291
Revolving Loans converted to term loans	173		173
Total Loans	24,707		24,707
Substandard
2022	2,368		2,368
2021	176		176
2019	28		28
Prior	14,353		14,353
Revolving Loans Amortized Cost Basis	3,375		3,375
Revolving Loans converted to term loans	443		443
Total Loans	20,743		20,743
Doubtful
Revolving Loans Amortized Cost Basis	4,702		4,702
Total Loans	4,702		4,702
One-To-Four Family - Residential Portfolio Segment [Member]
2023	4,141		4,141
2022	23,958		23,958
2021	8,857		8,857
2020	17,905		17,905
2019	40,767		40,767
Prior	114,782		114,782
Revolving Loans Amortized Cost Basis	7,670		7,670
Revolving Loans converted to term loans	13,135		13,135
Total Loans	231,215		231,215		242,480
Gross charge-offs
Prior			12
Charge-offs	6		12
One-To-Four Family - Residential Portfolio Segment [Member] | Pass
2023	4,141		4,141
2022	23,445		23,445
2021	8,579		8,579
2020	17,905		17,905
2019	40,029		40,029
Prior	108,935		108,935
Revolving Loans Amortized Cost Basis	7,607		7,607
Revolving Loans converted to term loans	11,106		11,106
Total Loans	221,747		221,747
One-To-Four Family - Residential Portfolio Segment [Member] | Watch
2022	513		513
2021	278		278
2019	738		738
Prior	1,607		1,607
Revolving Loans Amortized Cost Basis	63		63
Revolving Loans converted to term loans	1,413		1,413
Total Loans	4,612		4,612
One-To-Four Family - Residential Portfolio Segment [Member] | Special Mention
Revolving Loans converted to term loans	173		173
Total Loans	173		173
One-To-Four Family - Residential Portfolio Segment [Member] | Substandard
Prior	4,240		4,240
Revolving Loans converted to term loans	443		443
Total Loans	4,683		4,683
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
2023	12,297		12,297
2022	44,290		44,290
2021	42,386		42,386
2020	32,058		32,058
2019	63,224		63,224
Prior	350,967		350,967
Total Loans	545,222		545,222		557,295
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Pass
2023	12,297		12,297
2022	44,290		44,290
2021	42,386		42,386
2020	32,058		32,058
2019	63,224		63,224
Prior	343,763		343,763
Total Loans	538,018		538,018
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Watch
Prior	5,786		5,786
Total Loans	5,786		5,786
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Special Mention
Prior	450		450
Total Loans	450		450
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Substandard
Prior	968		968
Total Loans	968		968
Commercial Real Estate [Member]
2023	59,422		59,422
2022	327,888		327,888
2021	180,219		180,219
2020	149,773		149,773
2019	231,647		231,647
Prior	968,045		968,045
Total Loans	1,916,994		1,916,994		1,914,898
Gross charge-offs
Prior			8
Charge-offs	8		8
Commercial Real Estate [Member] | Pass
2023	59,422		59,422
2022	325,928		325,928
2021	178,735		178,735
2020	149,773		149,773
2019	222,077		222,077
Prior	948,085		948,085
Total Loans	1,884,020		1,884,020
Commercial Real Estate [Member] | Watch
2022	1,960		1,960
2021	1,484		1,484
2019	9,570		9,570
Prior	19,783		19,783
Total Loans	32,797		32,797
Commercial Real Estate [Member] | Special Mention
Prior	177		177
Total Loans	177		177
Construction Portfolio Segment
2023	4,357		4,357
2022	3		3
2021	10,186		10,186
Revolving Loans Amortized Cost Basis	42,659		42,659
Total Loans	57,205		57,205		70,824
Construction Portfolio Segment | Pass
2023	4,357		4,357
2022	3		3
2021	10,186		10,186
Revolving Loans Amortized Cost Basis	42,659		42,659
Total Loans	57,205		57,205
Multi-family Residential Portfolio Segment [Member]
2023	89,777		89,777
2022	478,367		478,367
2021	283,598		283,598
2020	221,810		221,810
2019	308,790		308,790
Prior	1,211,558		1,211,558
Revolving Loans Amortized Cost Basis	3,564		3,564
Total Loans	2,597,464		2,597,464		2,605,172
Multi-family Residential Portfolio Segment [Member] | Pass
2023	89,777		89,777
2022	477,475		477,475
2021	283,598		283,598
2020	218,950		218,950
2019	308,790		308,790
Prior	1,178,081		1,178,081
Revolving Loans Amortized Cost Basis	3,564		3,564
Total Loans	2,560,235		2,560,235
Multi-family Residential Portfolio Segment [Member] | Watch
2022	892		892
2020	2,860		2,860
Prior	28,246		28,246
Total Loans	31,998		31,998
Multi-family Residential Portfolio Segment [Member] | Special Mention
Prior	873		873
Total Loans	873		873
Multi-family Residential Portfolio Segment [Member] | Substandard
Prior	4,358		4,358
Total Loans	4,358		4,358
Commercial Business Secured By Portfolio Segment [member]
2023	21,100		21,100
2022	179,716		179,716
2021	132,943		132,943
2020	107,726		107,726
2019	55,981		55,981
Prior	207,002		207,002
Total Loans	704,468		704,468
Commercial Business Secured By Portfolio Segment [member] | Pass
2023	21,100		21,100
2022	179,716		179,716
2021	132,943		132,943
2020	107,726		107,726
2019	40,571		40,571
Prior	147,446		147,446
Total Loans	629,502		629,502
Commercial Business Secured By Portfolio Segment [member] | Watch
2019	610		610
Prior	59,556		59,556
Total Loans	60,166		60,166
Commercial Business Secured By Portfolio Segment [member] | Special Mention
2019	14,800		14,800
Total Loans	14,800		14,800
Commercial Business Portfolio Segment [Member]
2023	51,268		51,268
2022	138,062		138,062
2021	87,540		87,540
2020	38,601		38,601
2019	48,512		48,512
Prior	106,412		106,412
Revolving Loans Amortized Cost Basis	293,567		293,567
Total Loans	763,962		763,962
Gross charge-offs
2021			1,675
2019			8
Prior			10
Revolving Loans Amortized Cost Basis			9,267
Charge-offs			10,960
Commercial Business Portfolio Segment [Member] | Pass
2023	51,057		51,057
2022	135,313		135,313
2021	79,438		79,438
2020	31,380		31,380
2019	32,052		32,052
Prior	78,303		78,303
Revolving Loans Amortized Cost Basis	284,806		284,806
Total Loans	692,349		692,349
Commercial Business Portfolio Segment [Member] | Watch
2023	211		211
2022	381		381
2021	8,102		8,102
2020	2,446		2,446
2019	16,403		16,403
Prior	22,728		22,728
Revolving Loans Amortized Cost Basis	684		684
Total Loans	50,955		50,955
Commercial Business Portfolio Segment [Member] | Special Mention
2020	4,775		4,775
2019	29		29
Prior	1,757		1,757
Total Loans	6,561		6,561
Commercial Business Portfolio Segment [Member] | Substandard
2022	2,368		2,368
2019	28		28
Prior	3,624		3,624
Revolving Loans Amortized Cost Basis	3,375		3,375
Total Loans	9,395		9,395
Commercial Business Portfolio Segment [Member] | Doubtful
Revolving Loans Amortized Cost Basis	4,702		4,702
Total Loans	4,702		4,702
Small Business Administration Portfolio Segment [Member]
2023	814		814
2022	3,318		3,318
2021	5,017		5,017
2020	3,719		3,719
2019	739		739
Prior	8,706		8,706
Total Loans	22,313		22,313		23,193
Gross charge-offs
Prior			7
Charge-offs	1	$ 26	7	$ 1,054
Small Business Administration Portfolio Segment [Member] | Pass
2023	814		814
2022	3,318		3,318
2021	3,202		3,202
2020	3,719		3,719
2019	690		690
Prior	4,271		4,271
Total Loans	16,014		16,014
Small Business Administration Portfolio Segment [Member] | Watch
2019	49		49
Prior	3,238		3,238
Total Loans	3,287		3,287
Small Business Administration Portfolio Segment [Member] | Special Mention
2021	1,639		1,639
Prior	34		34
Total Loans	1,673		1,673
Small Business Administration Portfolio Segment [Member] | Substandard
2021	176		176
Prior	1,163		1,163
Total Loans	1,339		1,339
Other Portfolio Segment [Member]
Prior	117		117
Revolving Loans Amortized Cost Basis	90		90
Total Loans	207		207
Gross charge-offs
Prior			42
Charge-offs			42
Other Portfolio Segment [Member] | Pass
Prior	117		117
Revolving Loans Amortized Cost Basis	90		90
Total Loans	207		207
Consumer Portfolio Segment [Member]
Mortgage loans in process of foreclosure, amount	$ 5,700		$ 5,700		$ 5,200

XML

Loans - Amortized Cost of Collateral (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 6,839,050	$ 6,934,769
Basis adjustments	6,625
Portfolio Layer Hedges on Closed Portfolio of Loans [Member] | Designated as Hedging Instrument [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis adjustments	6,600
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	9,029	11,652
Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	9,411	18,290
Multi-family Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	2,597,464	2,605,172
Multi-family Residential Portfolio Segment [Member] | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	3,600	3,547
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,916,994	1,914,898
Commercial Real Estate [Member] | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans		254
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	545,222	557,295
One-To-Four Family - Mixed-Use Property Portfolio Segment [Member] | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	797	1,045
One-To-Four Family - Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	231,215	242,480
One-To-Four Family - Residential Portfolio Segment [Member] | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	4,632	3,953
Construction Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	57,205	70,824
Small Business Administration Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	22,313	23,193
Small Business Administration Portfolio Segment [Member] | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,124	950
Commercial Business and Other Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	1,468,637	1,520,907
Commercial Business and Other Portfolio Segment [Member] | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans		2,853
Commercial Business and Other Portfolio Segment [Member] | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 8,287	$ 17,340

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Loans - Off-Balance Sheet Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance at beginning of period	$ 885	$ 1,589	$ 970	$ 1,209
Off-Balance Sheet- Provision (Benefit)	(72)	(145)	(157)	235
Balance at end of period	813	$ 1,444	813	$ 1,444
Extension of credit
Financing Receivable, Allowance for Credit Loss [Line Items]
Commitment to extend credit	$ 402,400		$ 402,400		$ 438,500

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Loans Held for Sale - Delinquent and Non-performing Loans Sold During the Period Indicated (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($) loan	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($) loan
Nonperforming Financial Instruments [Member]
Loans sold | loan	5	13	2
Proceeds	$ 4,466	$ 7,042	$ 4,117
Net Charge-offs		(8)
Net gain	$ 54	$ 108	$ 73
Nonperforming Financial Instruments [Member] | Multi-family Residential Portfolio Segment [Member]
Loans sold | loan	2	7
Proceeds	$ 2,074	$ 3,622
Net gain	$ 14	$ 69
Nonperforming Financial Instruments [Member] | Commercial Real Estate [Member]
Loans sold | loan	1	3	1
Proceeds	$ 1,026	$ 1,867	$ 3,687
Net Charge-offs		$ (8)
Net gain			$ 73
Nonperforming Financial Instruments [Member] | One-To-Four Family - Mixed-Use Property Portfolio Segment [Member]
Loans sold | loan	2	3	1
Proceeds	$ 1,366	$ 1,553	$ 430
Net gain	$ 40	$ 39
Performing Financial Instruments [Member]
Loans sold | loan			5
Proceeds			$ 14,448
Performing Financial Instruments [Member] | Multi-family Residential Portfolio Segment [Member]
Loans sold | loan			4
Proceeds			$ 10,136
Performing Financial Instruments [Member] | Commercial Real Estate [Member]
Loans sold | loan			1
Proceeds			$ 4,312

XML

Leases (Details)	Jun. 30, 2023 lease agreement	Dec. 31, 2022 agreement
Number lease agreements qualified as short-term leases | agreement	4	2
Minimum [Member]
Term of contract	4 months
Maximum [Member]
Term of contract	13 years
Branches And Office Space [Member]
Number of leases	31
Vehicles [Member]
Number of leases	9
Equipment [Member]
Number of leases	1

XML

Leases - Balance Sheet Disclosures and Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Operating lease ROU asset	$ 41,526		$ 41,526		$ 43,289
Operating lease liability	$ 44,402		$ 44,402		$ 46,125
Weighted-average remaining lease term-operating leases (Year)	6 years 6 months		6 years 6 months		6 years 7 months 6 days
Weighted average discount rate-operating leases	3.20%		3.20%		2.90%
Short-term lease cost	$ 82	$ 36	$ 138	$ 97
Variable lease cost	281	238	523	438
Total lease cost	2,529	2,399	5,149	4,781
Operating cash flows from operating leases	2,261	2,343	4,655	4,769
Right-of-use assets obtained in exchange for new operating lease liabilities	1,198		2,044	47
Occupancy and equipment
Operating lease cost	2,143	2,099	4,442	4,198
Other operating expense
Operating lease cost	$ 23	$ 26	$ 46	$ 48

XML

Leases - Minimum Annual Rental Payments for Bank facilities Due Under Non-cancelable Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
2023	$ 5,218
2024	9,520
2025	8,850
2026	7,955
2027	3,865
Thereafter	13,689
Total minimum payments required	49,097
Less: implied interest	4,695
Total lease obligations	$ 44,402	$ 46,125

XML

Stock-based Compensation (Details) - USD ($)			3 Months Ended		6 Months Ended
	May 18, 2021	Jan. 31, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-based compensation expense (benefit)			$ 500,000	$ 900,000	$ 3,600,000	$ 4,900,000
Income tax benefits related to the stock-based compensation plans			$ 100,000	300,000	$ 900,000	$ 1,300,000
Omnibus Plan 2014 [Member]
Number of additional shares authorized	1,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			744,593		744,593
The 2019 Long-term Incentive Compensation Program [Member]
Awards vesting period		3 years
Restricted Stock Units (RSUs) [Member]
Awards granted					235,850	212,811
Restricted Stock Units (RSUs) [Member] | Omnibus Plan 2014 [Member]
Total unrecognized compensation cost			$ 5,800,000		$ 5,800,000
Weighted-average period of recognition of compensation cost					2 years 8 months 12 days
Total fair value of awards vested			200,000	500,000	$ 5,200,000	$ 7,100,000
Performance-based Restricted Stock Units [Member]
Awards granted					79,050	63,250
Phantom Share Units (PSUs) [Member] | Phantom Stock Plan [Member]
Stock-based compensation expense (benefit)			400,000	100,000	$ 1,100,000	$ 400,000
Total fair value of awards vested			$ 1,000	$ 2,000	$ 16,000	$ 18,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period					1 year

XML

Stock-based Compensation - RSU and PRSU awards (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units (RSUs) [Member]
Non-vested, beginning balance (in shares)	275,588
Non-vested, weighted-average grant-date fair value, beginning balance (in dollars per share)	$ 22.30
Granted (in shares)	235,850	212,811
Granted, weighted-average grant-date fair value (in dollars per share)	$ 19.84
Vested (in shares)	(213,639)
Vested, weighted-average grant-date fair value (in dollars per share)	$ 21.19
Forfeited (in shares)	(2,840)
Forfeited, weighted-average grant-date fair value (in dollars per share)	$ 22.14
Non-vested, ending balance (in shares)	294,959
Non-vested, weighted-average grant-date fair value, ending balance (in dollars per share)	$ 21.14
Vested but unissued (in shares)	249,780
Vested but unissued, weighted-average grant-date fair value (in dollars per share)	$ 20.78
Performance-based Restricted Stock Units [Member]
Non-vested, beginning balance (in shares)	68,800
Non-vested, weighted-average grant-date fair value, beginning balance (in dollars per share)	$ 20.90
Granted (in shares)	79,050	63,250
Granted, weighted-average grant-date fair value (in dollars per share)	$ 19.99
Vested (in shares)	(53,430)
Vested, weighted-average grant-date fair value (in dollars per share)	$ 19.94
Non-vested, ending balance (in shares)	94,420
Non-vested, weighted-average grant-date fair value, ending balance (in dollars per share)	$ 20.68
Vested but unissued (in shares)	142,065
Vested but unissued, weighted-average grant-date fair value (in dollars per share)	$ 20.80

XML

Stock-based Compensation - Phantom Stock Plan (Details) - Phantom Share Units (PSUs) [Member] - Phantom Stock Plan [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Outstanding, beginning balance (in shares) | shares	158,410
Outstanding, beginning balance, Fair Value (in dollars per share) | $ / shares	$ 19.38
Granted (in shares) | shares	18,403
Granted, Weighted Average Fair Value (in dollars per share) | $ / shares	$ 18.12
Distributions (in shares) | shares	(858)
Distributions , Weighted Average Fair Value (in dollars per share) | $ / shares	$ 18.87
Outstanding, ending balance (in shares) | shares	175,955
Outstanding, ending, Fair Value (in dollars per share) | $ / shares	$ 12.29
Vested at June 30, 2023 (in shares) | shares	175,819
Vested at June 30, 2023, Fair Value (in dollars per share) | $ / shares	$ 12.29

XML

Pension and Other Postretirement Benefit Plans (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Directors' Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		$ 200,000
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 44,000
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year		$ 300,000
Defined Benefit Plan, Plan Assets, Contributions by Employer	65,000
Employee Pension Plan [Member] | Savings Bank [Member]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year	$ 0

XML

Pension and Other Postretirement Benefits Plans - The Components of the Net Pension (Benefit) Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Pension Plan [Member]
Interest cost	$ 203	$ 138	$ 406	$ 276
Amortization of unrecognized loss		1		2
Expected return on plan assets	(277)	(258)	(554)	(515)
Net postretirement benefit expense	(74)	(119)	(148)	(237)
Directors' Plan [Member]
Service cost	2	3	4	6
Interest cost	14	12	29	23
Amortization of unrecognized loss	(40)	(7)	(80)	(14)
Net postretirement benefit expense	(24)	8	(47)	15
Other Post Retirement Benefit Plan Defined Benefit [Member]
Service cost	40	67	80	134
Interest cost	96	69	191	139
Amortization of unrecognized loss	(60)		(120)
Amortization of past service credit		(7)		(14)
Net postretirement benefit expense	$ 76	$ 129	$ 151	$ 259

XML

Fair Value of Financial Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets at Fair Value Option	$ 13,100		$ 13,100		$ 13,000
Financial Liabilities at Fair Value Option	47,800		47,800		50,500
Fair Value, Option, Changes in Fair Value, Gain (Loss)	294	$ 2,533	2,913	$ 724
Financial Liabilities at Fair Value Option Contractual Principal	61,900		61,900		61,900
Financial Liabilities at Fair Value Option Accrued Interest Payable	$ 400		$ 400		400
Appraised Value of Property [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral Dependent Loans Measurement Input	0.85		0.85
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 0		$ 0		$ 0

XML

Fair Value of Financial Instruments - Financial Assets and Liabilities Reported Under the Fair Value Option (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets at Fair Value Option	$ 13,100		$ 13,100		$ 13,000
Net gain from fair value adjustments	294	$ 2,533	2,913	$ 724
Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets at Fair Value Option	278		278		295
Net gain from fair value adjustments		(8)	1	(12)
Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets at Fair Value Option	12,781		12,781		12,728
Net gain from fair value adjustments	(192)	(484)	(83)	(1,020)
Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Assets at Fair Value Option	47,777		47,777		$ 50,507
Net gain from fair value adjustments	486	3,025	2,995	1,756
Financial Assets and Liabilities, Excluding Interest Rate Caps / Swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net gain from fair value adjustments	$ 294	$ 2,533	$ 2,913	$ 724

XML

Fair Value of Financial Instruments - Fair Value Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 961,591	$ 826,881
Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		454,320
Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		1,516
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	957,288	809,943
Financial and Nonfinancial Liabilities, Fair Value Disclosure	64,287	68,914
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	365,911	384,283
Fair Value, Measurements, Recurring [Member] | Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	503,645	351,074
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swaps, Net Amount	87,732	74,586
Interest Rate Swaps, Net Amount	16,510	18,407
Fair Value, Measurements, Recurring [Member] | Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings	47,777	50,507
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	11,346	11,211
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	11,346	11,211
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	944,508	797,216
Financial and Nonfinancial Liabilities, Fair Value Disclosure	16,510	18,407
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	365,911	384,283
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	490,865	338,347
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swaps, Net Amount	87,732	74,586
Interest Rate Swaps, Net Amount	16,510	18,407
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	1,434	1,516
Financial and Nonfinancial Liabilities, Fair Value Disclosure	47,777	50,507
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,434	1,516
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings	47,777	50,507
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	7,037	18,330
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 7,037	$ 18,330

XML

Fair Value of Financial Instruments - Assets and Liabilities Carried at Fair Value on a Recurring Basis, Classified Within Level 3 (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ 1,445	$ 1,740	$ 1,516	$ 1,695
Net (loss) gain from fair value adjustment of financial assets	(12)	(80)	(83)	(35)
Increase (decrease) in accrued interest	1	2	1	2
Ending balance	1,434	1,662	1,434	1,662
Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	48,117	57,955	50,507	56,472
Net (gain) loss from fair value adjustment of financial liabilities	(486)	(3,025)	(2,995)	(1,756)
Increase (decrease) in accrued interest	28	61	40	77
Change in unrealized (gains) losses included in other comprehensive loss	118	361	225	559
Ending balance	47,777	55,352	47,777	55,352
Changes in unrealized gains held at period end	$ 1,961	$ 2,775	$ 1,961	$ 2,775

XML

Fair Value of Financial Instruments - Quantitative Information About Recurring Level 3 Fair Value of Financial Instruments (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 961,591	$ 826,881
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Borrowings	$ 47,777	$ 50,507
Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member] | Junior Subordinated Debentures [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, Weighted average	0.043	0.036
Trust Preferred Securities [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 1,434	$ 1,516
Trust Preferred Securities [Member] | Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Weighted average	0.043	0.036

XML

Fair Value of Financial Instruments - Assets and Liabilities Carried at Fair Value on a Non-recurring Basis, Fair Value (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certain delinquent loans	$ 7,037	$ 18,330
Total assets	7,037	18,330
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certain delinquent loans	7,037	18,330
Total assets	$ 7,037	$ 18,330

XML

Fair Value of Financial Instruments - Qualitative Information About Non-recurring Level 3 Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certain delinquent loans	$ 7,037	$ 18,330
Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.100	0.100
Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.150	0.150
Valuation, Market Approach [Member] | Measurement Input, Loss Severity [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.110	0.136
Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certain delinquent loans	$ 5,776	$ 18,189
Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	(0.169)	(0.200)
Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.000	0.000
Valuation, Market Approach [Member] | Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	(0.022)	(0.013)
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certain delinquent loans	$ 1,261	$ 141
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.043	0.043
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.092
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.090	0.043
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Severity [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.290	0.350
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Severity [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.350
Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Loss Severity [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, measurement input	0.293	0.350

XML

Fair Value of Financial Instruments - Carrying Amounts and Estimated Fair Values of Selected Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	$ 73,334	$ 73,711
Securities available for sale	961,591	826,881
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	4,247	2,401
Interest rate swaps	16,510	18,407
Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		454,320
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	160,053	151,754
Loans	6,832,425	6,934,769
FHLB-NY stock	36,168	45,842
Accrued interest receivable	52,911	45,048
Deposits	6,723,690	6,485,342
Borrowed Funds	857,400	1,052,973
Accrued interest payable	9,234	10,034
Reported Value Measurement [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	87,732	74,856
Interest rate swaps	16,510	18,407
Reported Value Measurement [Member] | Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	7,865	7,875
Securities available for sale	365,911	384,283
Reported Value Measurement [Member] | Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	65,469	65,836
Securities available for sale	503,645	351,074
Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	160,053	151,754
Loans	6,488,955	6,651,795
FHLB-NY stock	36,168	45,842
Accrued interest receivable	52,911	45,048
Deposits	6,663,332	6,453,978
Borrowed Funds	807,724	1,027,370
Accrued interest payable	9,234	10,034
Estimate of Fair Value Measurement [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	87,732	74,856
Interest rate swaps	16,510	18,407
Estimate of Fair Value Measurement [Member] | Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	7,011	6,989
Securities available for sale	365,911	384,283
Estimate of Fair Value Measurement [Member] | Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	57,326	55,561
Securities available for sale	503,645	351,074
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	160,053	151,754
Deposits	4,490,994	4,959,004
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	11,346	11,211
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
FHLB-NY stock	36,168	45,842
Accrued interest receivable	5,821	3,819
Deposits	2,172,338	1,494,974
Borrowed Funds	759,947	976,863
Accrued interest payable	9,234	10,034
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	87,732	74,856
Interest rate swaps	16,510	18,407
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	7,011	6,989
Securities available for sale	365,911	384,283
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	490,865	338,347
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	6,488,955	6,651,795
Accrued interest receivable	47,090	41,229
Borrowed Funds	47,777	50,507
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Other Debt Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities held-to-maturity	57,326	55,561
Securities available for sale	$ 1,434	$ 1,516

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Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Junior subordinated debentures	$ 47,777		$ 47,777		$ 50,507
Notional amount, Assets	1,907,043		1,907,043		1,084,955
Short term advances and brokered CD's	922,500		922,500		871,500
Customer [Member]
Derivative instruments	120,400		120,400		110,600
Bank [Member]
Derivative instruments	120,400		120,400		110,600
Customer and Bank [Member]
Derivative instruments	240,700		240,700		221,200
Cash Flow Hedging [Member]
Amount reclassified from accumulated other comprehensive loss to interest expense	6,800	$ 2,400	11,000	$ 5,100
Amount to be reclassified from the accumulated comprehensive income (loss) into earnings			25,500
Not Designated as Hedging Instrument [Member]
Notional amount, Assets	241,700		241,700		221,200
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Notional amount, Assets	921,500		921,500		871,500
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Amount of hedged item	864,200		864,200		273,600
Interest Rate Swap [Member]
Notional amount, Assets	864,200		864,200		273,600
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Notional amount, Assets	121,351		121,351		110,598
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Notional amount, Assets	921,500		921,500		700,750
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Notional amount, Assets	864,192		864,192		$ 273,607
Portfolio Layer Hedges on Closed Portfolio of Securities Available for Sale [Member] | Designated as Hedging Instrument [Member]
Notional amount, Assets	294,931		294,931
Notional amount	200,000		200,000
Portfolio Layer Hedges on Closed Portfolio of Loans [Member] | Designated as Hedging Instrument [Member]
Notional amount, Assets	2,651,394		2,651,394
Notional amount	$ 400,000		$ 400,000

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Derivative Financial Instruments - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notional amount, Assets	$ 1,907,043	$ 1,084,955
Notional amount, Liability	120,351	281,348
Assets Fair Value	87,732	74,586
Liabilities, Fair Value	16,510	18,407
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Notional amount, Assets	921,500	871,500
Not Designated as Hedging Instrument [Member]
Notional amount, Assets	241,700	221,200
Interest Rate Swap [Member]
Notional amount, Assets	864,200	273,600
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Notional amount, Assets	864,192	273,607
Assets Fair Value	35,564	24,673
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Notional amount, Assets	921,500	700,750
Notional amount, Liability		170,750
Assets Fair Value	35,655	31,716
Liabilities, Fair Value		210
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Notional amount, Assets	121,351	110,598
Notional amount, Liability	120,351	110,598
Assets Fair Value	16,513	18,197
Liabilities, Fair Value	$ 16,510	$ 18,197

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Derivative Financial Instruments - Fair Value of Hedged Items (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Notional amount, Assets	$ 1,907,043	$ 1,084,955
Notional amount, Liability	120,351	281,348
Basis adjustments	6,625
Designated as Hedging Instrument [Member] | Portfolio Layer Hedges on Closed Portfolio of Loans [Member]
Notional amount, Assets	2,651,394
Cumulative amount, Hedged Liabilities	(6,625)
Basis adjustments	6,600
Designated as Hedging Instrument [Member] | Portfolio Layer Hedges on Closed Portfolio of Securities Available for Sale [Member]
Notional amount, Assets	294,931
Cumulative amount, Hedged Liabilities	(5,504)
Basis adjustments	5,500
Designated as Hedging Instrument [Member] | Portfolio Layer Hedges on Closed Portfolio [Member]
Notional amount, Assets	2,946,325
Cumulative amount, Hedged Liabilities	(12,129)
Designated as Hedging Instrument [Member] | Loans Receivable [Member]
Notional amount, Assets	241,468	249,966
Cumulative amount, Hedged Liabilities	(24,780)	(25,922)
Multi-family Residential Portfolio Segment [Member] | Designated as Hedging Instrument [Member]
Notional amount, Assets	81,741	82,613
Cumulative amount, Hedged Liabilities	(10,094)	(10,480)
Commercial Real Estate [Member] | Designated as Hedging Instrument [Member]
Notional amount, Assets	159,727	167,353
Cumulative amount, Hedged Liabilities	$ (14,686)	$ (15,442)

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Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total net income (expense) from the effects of derivative instruments	$ 10,340	$ (2,271)	$ 16,583	$ (6,226)
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Total net income (expense) from the effects of derivative instruments	$ 3		$ 3
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Expense, Deposits	Interest Expense, Deposits	Interest Expense, Deposits	Interest Expense, Deposits
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Total net income (expense) from the effects of derivative instruments		$ (886)		$ (2,321)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Interest and fees on loans		Interest and fees on loans
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest and fees on loans.
Total net income (expense) from the effects of derivative instruments	$ 2,669		$ 4,566
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest and dividends on securities
Total net income (expense) from the effects of derivative instruments	$ 788		$ 846
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and Dividend Income, Operating	Interest and Dividend Income, Operating	Interest and Dividend Income, Operating	Interest and Dividend Income, Operating
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other interest expense
Total net income (expense) from the effects of derivative instruments	$ 1,922	$ (1,489)	$ 3,343	$ (3,954)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Deposit
Total net income (expense) from the effects of derivative instruments	$ 4,958	$ 104	$ 7,825	$ 49

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Derivative Financial Instruments - Effect of Master Netting Arrangements on Derivative Assets and Liabilities in the Consolidated Statements of Condition (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Interest Rate Swaps, Gross Amount of Recognized Assets	$ 87,732	$ 74,586
Interest Rate Swaps, Gross Amount Offset in the Statement of Financial Condition	0	0
Interest Rate Swaps, Net Amount of Assets Presented in the Statement of Financial Condition	87,732	74,586
Interest Rate Swaps, Cash Collateral	(83,485)	(72,185)
Interest Rate Swaps, Net Amount	4,247	2,401
Interest Rate Swaps, Gross Amount of Recognized Liabilities	16,510	18,407
Interest Rate Swaps, Gross Amount Offset in the Statement of Financial Condition	0	0
Interest Rate Swaps, Net Amount of Liabilities Presented in the Statement of Financial Condition	16,510	18,407
Interest Rate Swaps, Net Amount	$ 16,510	$ 18,407

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Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Balance	$ 673,459	$ 677,157	$ 675,813	$ 679,628	$ 677,157	$ 679,628
Other comprehensive income (loss), net of tax:	1,765	(1,296)	(15,760)	(8,820)	469	(24,580)
Balance	671,303	673,459	670,812	675,813	671,303	670,812
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Balance	(59,119)	(63,106)	(29,699)	(6,272)	(63,106)	(6,272)
Other comprehensive income before reclassifications, net of tax	(7,349)		(20,434)		(4,216)	(43,861)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	2,945		0		3,799
Other comprehensive income (loss), net of tax:	(4,404)		(20,434)		(417)	(43,861)
Balance	(63,523)	(59,119)	(50,133)	(29,699)	(63,523)	(50,133)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	20,240	25,380	13,345	(1,406)	25,380	(1,406)
Other comprehensive income before reclassifications, net of tax	10,991		3,285		8,799	16,177
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(4,672)		1,630		(7,620)	3,489
Other comprehensive income (loss), net of tax:	6,319		4,915		1,179	19,666
Balance	26,559	20,240	18,260	13,345	26,559	18,260
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(344)	(275)	(1,291)	(1,282)	(275)	(1,282)
Other comprehensive income before reclassifications, net of tax			0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(69)		(22)		(138)	(31)
Other comprehensive income (loss), net of tax:	(69)		(22)		(138)	(31)
Balance	(413)	(344)	(1,313)	(1,291)	(413)	(1,313)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Balance	1,439	1,513	2,141	2,276	1,513	2,276
Other comprehensive income before reclassifications, net of tax	(81)		(219)		(155)	(354)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0
Other comprehensive income (loss), net of tax:	(81)		(219)		(155)	(354)
Balance	1,358	1,439	1,922	2,141	1,358	1,922
AOCI Attributable to Parent [Member]
Balance	(37,784)	(36,488)	(15,504)	(6,684)	(36,488)	(6,684)
Other comprehensive income before reclassifications, net of tax	3,561		(17,368)		4,428	(28,038)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(1,796)		1,608		(3,959)	3,458
Other comprehensive income (loss), net of tax:	1,765	(1,296)	(15,760)	(8,820)	469	(24,580)
Balance	$ (36,019)	$ (37,784)	$ (31,264)	$ (15,504)	$ (36,019)	$ (31,264)

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Accumulated Other Comprehensive Income (Loss) Reclassified by Component (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest and dividend income	$ 96,561		$ 74,291		$ 188,678	$ 145,611
Interest (expense)	(53,183)		(9,561)		(100,038)	(17,402)
Other operating expense	5,547		4,891		12,000	10,822
Provision for income taxes	3,177		9,936		4,978	16,357
Total before tax	11,805		34,971		18,764	59,611
Net Income (Loss)	8,628	$ 5,158	25,035	$ 18,219	13,786	43,254
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Interest Rate Swap [Member]
Interest (expense)						(5,087)
Provision for income taxes						1,598
Net Income (Loss)						(3,489)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Interest (expense)	6,785		(2,364)		11,040
Provision for income taxes	(2,113)		734		(3,420)
Net Income (Loss)	4,672		(1,630)		7,620
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Other operating expense	100		6		200	12
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]
Other operating expense			7			14
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Provision for income taxes	(31)		9		(62)
Total before tax			13			26
Tax expense (benefit)						5
Net Income (Loss)	69		$ 22		138	$ 31
Reclassification out of Accumulated Other Comprehensive Income [Member] | AOCI Attributable to Parent [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member]
Interest and dividend income	(4,266)				(5,504)
Provision for income taxes	1,321				1,705
Net Income (Loss)	$ (2,945)				$ (3,799)

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Regulatory Capital (Details)	Jun. 30, 2023	Dec. 31, 2022
Savings Bank [Member]
Capital Conservation Buffer	6.33%	6.37%
Holding Company
Capital Conservation Buffer	5.07%	5.25%

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Regulatory Capital - Summary of the Bank's Compliance (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Savings Bank [Member]
Tier I (leverage) capital:
Tier I (leverage) capital, capital level, amount	$ 915,247	$ 915,628
Tier I (leverage) capital, capital level, percent	0.1067	0.1056
Tier I (leverage) capital, requirement to be well-capitalized, amount	$ 428,869	$ 433,667
Tier I (leverage) capital, requirement to be well-capitalized, percent	0.0500	0.0500
Tier I (leverage) capital, excess, amount	$ 486,378	$ 481,961
Tier I (leverage) capital, excess, percent	0.0567	0.0556
Common Equity Tier I risk-based capital:
Common Equity Tier I risk-based capital, capital level, amount	$ 915,247	$ 915,628
Common Equity Tier I risk-based capital, capital level, percent	0.1376	0.1379
Common Equity Tier I risk-based capital, requirement to be well-capitalized, amount	$ 432,313	$ 431,734
Common Equity Tier I risk-based capital, requirement to be well-capitalized, percent	0.065%	0.065%
Common Equity Tier I risk-based capital, excess, amount	$ 482,934	$ 483,894
Common Equity Tier I risk-based capital, excess, percent	0.0726%	0.0729%
Tier I risk-based capital:
Tier I risk-based capital, capital level, amount	$ 915,247	$ 915,628
Tier I risk-based capital, capital level, percent	0.1376	0.1379
Tier I risk-based capital, requirement to be well-capitalized, amount	$ 532,077	$ 531,365
Tier I risk-based capital, requirement to be well-capitalized, percent	0.0800	0.0800
Tier I risk-based capital, excess, amount	$ 383,170	$ 384,263
Tier I risk-based capital, excess, percent	0.0576	0.0579
Total risk-based capital:
Total risk-based capital, capital level, amount	$ 953,277	$ 954,457
Total risk-based capital, capital level, percent	0.1433	0.1437
Total risk-based capital, requirement to be well-capitalized, amount	$ 665,097	$ 664,206
Total risk-based capital, requirement to be well-capitalized, percent	0.1000	0.1000
Total risk-based capital, excess, amount	$ 288,180	$ 290,251
Total risk-based capital, excess, percent	0.0433	0.0437
Holding Company
Tier I (leverage) capital:
Tier I (leverage) capital, capital level, amount	$ 735,810	$ 746,880
Tier I (leverage) capital, capital level, percent	0.0856	0.0861
Tier I (leverage) capital, requirement to be well-capitalized, amount	$ 429,905	$ 433,607
Tier I (leverage) capital, requirement to be well-capitalized, percent	0.0500	0.0500
Tier I (leverage) capital, excess, amount	$ 305,905	$ 313,273
Tier I (leverage) capital, excess, percent	0.0356	0.0361
Common Equity Tier I risk-based capital:
Common Equity Tier I risk-based capital, capital level, amount	$ 689,876	$ 698,258
Common Equity Tier I risk-based capital, capital level, percent	0.1038	0.1052
Common Equity Tier I risk-based capital, requirement to be well-capitalized, amount	$ 432,201	$ 431,635
Common Equity Tier I risk-based capital, requirement to be well-capitalized, percent	0.065%	0.065%
Common Equity Tier I risk-based capital, excess, amount	$ 257,675	$ 266,623
Common Equity Tier I risk-based capital, excess, percent	0.0388%	0.0402%
Tier I risk-based capital:
Tier I risk-based capital, capital level, amount	$ 735,810	$ 746,880
Tier I risk-based capital, capital level, percent	0.1107	0.1125
Tier I risk-based capital, requirement to be well-capitalized, amount	$ 531,940	$ 531,243
Tier I risk-based capital, requirement to be well-capitalized, percent	0.0800	0.0800
Tier I risk-based capital, excess, amount	$ 203,870	$ 215,637
Tier I risk-based capital, excess, percent	0.0307	0.0325
Total risk-based capital:
Total risk-based capital, capital level, amount	$ 963,840	$ 975,709
Total risk-based capital, capital level, percent	0.1450	0.1469
Total risk-based capital, requirement to be well-capitalized, amount	$ 664,925	$ 664,054
Total risk-based capital, requirement to be well-capitalized, percent	0.1000	0.1000
Total risk-based capital, excess, amount	$ 298,915	$ 311,655
Total risk-based capital, excess, percent	0.0450	0.0469

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 8,628	$ 5,158	$ 25,035	$ 18,219	$ 13,786	$ 43,254

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false