Flushing Financial Corp. Restates 2023 Q1 Financials Due to ERC Accounting Errors

TL;DR

<b>Flushing Financial Corporation is restating its Q1 2023 financial results due to accounting errors related to Employee Retention Credits, impacting net income by $1.1 million and revealing a material weakness in internal controls.</b>

AI Summary

FLUSHING FINANCIAL CORP (FFIC) filed a Amended Quarterly Report (10-Q/A) with the SEC on February 12, 2024. Flushing Financial Corporation (FFIC) is restating its Q1 2023 financial statements due to incorrect accounting for Employee Retention Credits (ERCs). The restatement reduces net income for the three months ended March 31, 2023, by $1.1 million. The company determined it could not treat the ultimate realization of ERCs as 'probable' under GAAP. This restatement was prompted by an 8-K filing on January 26, 2024, and an independent tax advisor's initial advice was found unreliable. A material weakness in internal control over financial reporting existed as of March 31, 2023, related to ERC income recognition probability assessment.

Why It Matters

For investors and stakeholders tracking FLUSHING FINANCIAL CORP, this filing contains several important signals. The restatement highlights potential issues with the company's accounting controls and its reliance on external advisors for complex tax credit calculations. Investors need to be aware of the impact on historical financial performance and the ongoing efforts to strengthen internal financial reporting.

Risk Assessment

Risk Level: — FLUSHING FINANCIAL CORP shows moderate risk based on this filing. The company identified a material weakness in internal controls over financial reporting related to the probability assessment of Employee Retention Credits, indicating a significant deficiency in financial oversight.

Analyst Insight

FFIC should focus on strengthening its internal control framework, particularly concerning the assessment of complex tax credit recognition, and re-evaluating its reliance on external advisors.

Key Numbers

• 1.1 — million (Decrease in net income for Q1 2023 due to ERC accounting)
• 2023-03-31 — As of Date (Date of material weakness identification)

Key Players & Entities

• Flushing Financial Corporation (company) — Filer of the report
• FFIC (company) — Ticker symbol for Flushing Financial Corporation
• SEC (regulator) — Securities and Exchange Commission
• $1.1 million (dollar_amount) — Impact on net income for Q1 2023
• March 31, 2023 (date) — Period for which financial statements are restated
• January 26, 2024 (date) — Date of the 8-K filing disclosing the issue

Forward-Looking Statements

• Flushing Financial will implement stronger internal controls to address the identified material weakness. (Flushing Financial Corporation) — high confidence, target: December 31, 2024
• Investor confidence in Flushing Financial's financial reporting may be temporarily impacted. (Flushing Financial Corporation) — medium confidence, target: June 30, 2024

FAQ

Risk Factors

• Material Weakness in Internal Control Over Financial Reporting [high — operational]: The company identified a material weakness in its internal control over financial reporting as of March 31, 2023, specifically concerning the probability assessment for recognizing income related to Employee Retention Credits.

Key Dates

• 2023-03-31: Restatement Period End — Financial statements for this period are being restated.
• 2024-01-26: 8-K Filing Date — Disclosure of management's determination regarding financial statement restatement.
• 2024-02-12: Filing Date — Amended and restated Quarterly Report on Form 10-Q/A filed.

Glossary

Employee Retention Credits (ERCs)

Tax credits designed to encourage employers to keep employees on payroll during the COVID-19 pandemic. (Incorrect recognition of these credits as income led to the financial statement restatement.)

Material Weakness

A deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. (The identification of a material weakness indicates significant deficiencies in the company's financial reporting processes.)

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value FFIC The Nasdaq Stock Mar
• $1.1 million — ge impacted net income by a decrease of $1.1 million for the three-month period ended March

Filing Documents

• ffic-20230331x10qa.htm (10-Q/A) — 5161KB
• ffic-20230331xex31d1.htm (EX-31.1) — 9KB
• ffic-20230331xex31d2.htm (EX-31.2) — 9KB
• ffic-20230331xex32d1.htm (EX-32.1) — 6KB
• ffic-20230331xex32d2.htm (EX-32.2) — 6KB
• 0001558370-24-000982.txt (&nbsp;) — 23620KB
• ffic-20230331.xsd (EX-101.SCH) — 85KB
• ffic-20230331_cal.xml (EX-101.CAL) — 69KB
• ffic-20230331_def.xml (EX-101.DEF) — 465KB
• ffic-20230331_lab.xml (EX-101.LAB) — 672KB
• ffic-20230331_pre.xml (EX-101.PRE) — 652KB
• ffic-20230331x10qa_htm.xml (XML) — 7082KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements - (Unaudited)

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

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 39

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 54

Controls and Procedures

ITEM 4. Controls and Procedures 54

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

ITEM 1. Legal Proceedings 55

Risk Factors

ITEM 1A. Risk Factors 55

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 56

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 56

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 56

Other Information

ITEM 5. Other Information 56

Exhibits

ITEM 6. Exhibits 57

SIGNATURES

SIGNATURES 59 ii Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES Consolidated Statements of Financial Condition (Unaudited)

Financial Statements

Item 1. Financial Statements March 31, 2023 December 31, (As Restated) 2022 (Dollars in thousands, except per share data) Assets Cash and due from banks $ 176,747 $ 151,754 Securities held-to-maturity, net of allowance of $ 1,087 and $ 1,100 , respectively, (assets pledged of $ 4,647 and $ 4,550 , respectively; fair value of $ 67,869 and $ 62,550 , respectively) 73,523 73,711 Securities available for sale, at fair value: (assets pledged of $ 193,558 and $ 172,235 , respectively; $ 13,192 and $ 13,023 at fair value pursuant to the fair value option, respectively) 811,928 735,357 Loans, net of fees and costs 6,904,176 6,934,769 Less: Allowance for credit losses ( 38,729 ) ( 40,442 ) Net loans 6,865,447 6,894,327 Interest and dividends receivable 46,836 45,048 Bank premises and equipment, net 21,567 21,750 Federal Home Loan Bank of New York stock, at cost 38,779 45,842 Bank owned life insurance 214,240 213,131 Goodwill 17,636 17,636 Core deposit intangibles 1,891 2,017 Right of use asset 42,268 43,289 Other assets 168,872 179,084 Total assets $ 8,479,734 $ 8,422,946 Liabilities Due to depositors: Non-interest bearing $ 872,254 $ 921,238 Interest-bearing 5,783,263 5,515,945 Total Due to depositors 6,655,517 6,437,183 Mortgagors' escrow deposits 78,573 48,159 Borrowed funds: Federal Home Loan Bank advances and other borrowings 652,262 815,501 Subordinated debentures 187,130 186,965 Junior subordinated debentures, at fair value 48,117 50,507 Total borrowed funds 887,509 1,052,973 Operating lease liability 45,353 46,125 Other liabilities 140,437 161,349 Total liabilities 7,807,389 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; 29,488,456 shares and 29,476,391 shares o

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES Consolidated Statements of Income (Unaudited) For the three months ended March 31, 2023 (As Restated) 2022 (In thousands, except per share data) Interest and dividend income Interest and fees on loans $ 82,889 $ 67,516 Interest and dividends on securities: Interest 7,240 3,745 Dividends 29 8 Other interest income 1,959 51 Total interest and dividend income 92,117 71,320 Interest expense Deposits 39,056 3,408 Other interest expense 7,799 4,433 Total interest expense 46,855 7,841 Net interest income 45,262 63,479 Provision for credit losses 7,508 1,358 Net interest income after provision for credit losses 37,754 62,121 Non-interest income Banking services fee income 1,411 1,374 Net gain on sale of loans 54 — Net gain (loss) from fair value adjustments 2,619 ( 1,809 ) Federal Home Loan Bank of New York stock dividends 697 397 Bank owned life insurance 1,109 1,114 Other income 967 237 Total non-interest income 6,857 1,313 Non-interest expense Salaries and employee benefits 22,562 23,649 Occupancy and equipment 3,793 3,604 Professional services 2,261 2,222 FDIC deposit insurance 977 420 Data processing 1,435 1,424 Depreciation and amortization of bank premises and equipment 1,510 1,460 Other real estate owned / foreclosure expense 165 84 Other operating expenses 6,453 5,931 Total non-interest expense 39,156 38,794 Income before income taxes 5,455 24,640 Provision for income taxes Federal 1,071 4,650 340 1,771 Total provision for income taxes 1,411 6,421 Net income $ 4,044 $ 18,219 Basic earnings per common share $ 0.13 $ 0.58 Diluted earnings per common share $ 0.13 $ 0.58 Dividends per common share $ 0.22 $ 0.22 The accompanying notes are an integral part of the

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES Consolidated Statements of Comprehensive Income (Unaudited) For the three months ended March 31, 2023 (As Restated) 2022 (In thousands) Net income $ 4,044 $ 18,219 Other comprehensive loss, net of tax: Amortization of actuarial gains, net of taxes of $ 31 and $ 2 , respectively. ( 69 ) ( 4 ) Amortization of prior service credits, net of taxes of $ 2 for the three months ended March 31, 2022. — ( 5 ) Change in net unrealized gains (losses) on securities available for sale, net of taxes of ($ 1,883 ), and $ 10,892 , respectively. 3,987 ( 23,427 ) Net unrealized (loss) gain on cash flow hedges, net of taxes of $ 2,345 , and ($ 6,857 ), respectively. ( 5,140 ) 14,751 Change in fair value of liabilities related to instrument-specific credit risk, net of taxes of $ 33 , and $ 63 , respectively. ( 74 ) ( 135 ) Total other comprehensive loss, net of tax ( 1,296 ) ( 8,820 ) Comprehensive net income $ 2,748 $ 9,399 The accompanying notes are an integral part of these consolidated financial statements. -3- Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) For the three months ended March 31, 2023 (As Restated) 2022 (In thousands) Operating Activities Net income $ 4,044 $ 18,219 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Provision for credit losses 7,508 1,358 Depreciation and amortization of premises and equipment 1,510 1,460 Net gain on sales of loans ( 54 ) — Net amortization (accretion) of premiums and discounts 1,234 ( 492 ) Deferred income tax provision 1,136 — Net (gain) loss from fair value adjustments ( 2,619 ) 1,809 Net (gain) loss from fair value adjustments of qualifying hedges ( 100 ) 129 Income from bank owned life insurance ( 1,109 ) ( 1,114 ) Stock-based compensation expense 3,808 4,194 Deferred compensation ( 1,707 ) ( 2,545 ) Amortization of core deposit intangibles 126 142 (Increase) decrease in other assets ( 9,033 ) 3,570 (Decrease) increase in other liabilities ( 15,162 ) 13,847 Net cash (used in) provided by operating activities ( 10,418 ) 40,577 Investing Activities Purchases of premises and equipment ( 1,327 ) ( 874 ) Purchases of Federal Home Loan Bank - NY shares ( 55,017 ) ( 388 ) Redemptions of Federal Home Loan Bank - NY shares 62,080 2,434 Purchases of securities held-to-maturity — ( 16,476 ) Proceeds from prepayments of securities held-to-maturity 200 — Purchases of securities available for sale ( 93,068 ) ( 130,312 ) Proceeds from maturities and prepayments of securities available for sale 21,087 32,177 Change in cash collateral ( 6,180 ) — Net repayments of loans 75,496 72,080 Purchases of loans ( 44,466 ) ( 54,309 ) Proceeds from sale of loans 2,575 — Net cash used in investing activities ( 38,620 ) ( 95,668 ) -4- Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES Consolidated Statements of Cash Flows (Contd.) (Unaudited) For the three months ended March 31, 2023 (As Restated) 2022 (In thousands) Financing Activities Net (decrease) increase in noninterest-bearing deposits $ ( 48,984 ) $ 73,406 Net increase in interest-bearing deposits 267,208 16,482 Net increase in mortgagors' escrow deposits 30,414 27,582 Net (repayments) proceeds from short-term borrowed funds ( 235,000 ) 110,000 Proceeds (repayments) from long-term borrowing 71,761 ( 50,000 ) Purchase of treasury shares and repurchase of shares to satisfy tax obligations ( 4,709 ) ( 10,845 ) Cash dividends paid ( 6,659 ) ( 6,850 ) Net cash provided by financing activities 74,031 159,775 Net increase in cash and cash equivalents, and restricted cash 24,993 104,684 Cash, cash equivalents, and restricted cash, beginning of period 151,754 81,723 Cash, cash equivalents, and restricted cash, end of period $ 176,747 $ 186,407 Supplemental Cash Flow Disclosure Interest paid $ 48,889 $ 6,846 Income taxes paid 1,993 214 Taxes paid if excess tax benefits on stock-based compensation were not tax deductible 1,948 384 The accompanying notes are an integral part of these consolidated financial statements. -5- Table of Contents

– FINANCIAL INFORMATION

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 (As Restated) — 4,044 — — — 4,044 — 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 (As Restated) 29,488,456 $ 672,345 $ 341 $ 262,876 $ ( 97,760 ) $ 544,672 $ ( 37,784 ) 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 ) — Othe

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Basis of Presentation The primary business of Flushing Financial Corporation (the "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/A ("Quarterly Report") include the collective results of the 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 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,

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) The following tables summarize the effects of the restatements on select consolidated financial statements as reported as of and for the periods stated and are unaudited: Consolidated Statements of Financial Condition: As of March 31, 2023 (In thousands) As Reported Adjustments As Restated Other assets $ 168,259 $ 613 $ 168,872 Total assets 8,479,121 613 8,479,734 Other liabilities 138,710 1,727 140,437 Total liabilities 7,805,662 1,727 7,807,389 Retained earnings 545,786 ( 1,114 ) 544,672 Total stockholders' equity 673,459 ( 1,114 ) 672,345 Total liabilities and stockholders' equity 8,479,121 613 8,479,734 Consolidated Statements of Income: For the three months ended March 31, 2023 (In thousands, except per share data) As Reported Adjustments As Restated Other income $ 1,018 $ ( 51 ) $ 967 Total non-interest income 6,908 ( 51 ) 6,857 Salaries and employee benefits 20,887 1,675 22,562 Professional services 2,483 ( 222 ) 2,261 Total non-interest expense 37,703 1,453 39,156 Income before income taxes 6,959 ( 1,504 ) 5,455 Federal income tax 1,367 ( 296 ) 1,071 434 ( 94 ) 340 Total provision for income tax 1,801 ( 390 ) 1,411 Net income 5,158 ( 1,114 ) 4,044 Basic earnings per common share 0.17 ( 0.04 ) 0.13 Diluted earnings per common share 0.17 ( 0.04 ) 0.13 Consolidated Statements of Comprehensive Income: For the three months ended March 31, 2023 (In thousands) As Reported Adjustments As Restated Net income $ 5,158 $ ( 1,114 ) $ 4,044 Comprehensive net income 3,862 ( 1,114 ) 2,748 Consolidated Statements of Cash Flows: Operating Activities: For the three months March 31, 2023 (In thousands) As Reported Adjustments As Restated Net income $ 5,158 $ ( 1,114 ) $ 4,044

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 13 – Regulatory Capital 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. Management performed a qualitative review of goodwill at March 31, 2023, concluding no impairment was indicated. 3. Earnings Per Share Earnings per common share have been computed based on the following: For the three months ended March 31, 2023 (As Restated) 2022 (In thousands, except per share data) Net income, as reported $ 4,044 $ 18,219 Divided by: Weighted average common shares outstanding 30,265 31,524 Weighted average common stock equivalents (1) — — Total weighted average common shares outstanding and common stock equivalents 30,265 31,524 Basic earnings per common share $ 0.13 $ 0.58 Diluted earnings per common share $ 0.13 $ 0.58 Dividend Payout ratio 169.2 % 37.9 % (1) For the three months ended March 31, 2023, and 2022, there were no common stock equivalents that were anti- dilutive. -9- Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 4. Securities The following table summarizes the Company's portfolio of securities held-to-maturity on March 31, 2023: Gross Gross Amortized Unrecognized Unrecognized Cost Fair Value Gains Losses (In thousands) Municipals $ 66,740 $ 60,732 $ — $ 6,008 Total municipals 66,740 60,732 — 6,008 FNMA 7,870 7,137 — 733 Total mortgage-backed securities 7,870 7,137 — 733 Allowance for credit losses ( 1,087 ) — — — Total $ 73,523 $ 67,869 $ — $ 6,741 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 -10- Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) The following table summarizes the Company's portfolio of securities available for sale on March 31, 2023: Gross Gross Amortized Unrealized Unrealized Cost Fair Value Gains Losses (In thousands) U.S. government agencies $ 83,691 $ 81,802 $ 171 $ 2,060 Corporate 173,052 156,581 — 16,471 Mutual funds 11,460 11,460 — — Collateralized loan obligations 184,773 180,530 — 4,243 Other 1,445 1,445 — — Total other securities 454,421 431,818 171 22,774 REMIC and CMO 172,001 146,318 — 25,683 GNMA 9,067 7,304 3 1,766 FNMA 168,689 146,633 1 22,057 FHLMC 94,641 79,855 — 14,786 Total mortgage-backed securities 444,398 380,110 4 64,292 Total securities available for sale $ 898,819 $ 811,928 $ 175 $ 87,066 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 March 31, 2023 and December 31, 2022, are issued by U.S. banking institutions. The CMOs held by the Company at March 31, 2023 and December 31, 2022, are either fully guaranteed or issued by a government sponsored enterprise. The following table

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION FLUSHING FINANCIAL CORPORATION and SUBSIDIARIES

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Amortized Securities held-to-maturity: Cost Fair Value (In thousands) Due after ten years $ 66,740 $ 60,732 Total other securities 66,740 60,732 Mortgage-backed securities 7,870 7,137 74,610 67,869 Allowance for credit losses ( 1,087 ) - Total securities held-to-maturity $ 73,523 $ 67,869 Amortized Securities available for sale: Cost Fair Value (In thousands) Due in one year or less $ 59,843 $ 58,258 Due after o

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