Flushing Financial Corporation Repays TARP Capital

LAKE SUCCESS, N.Y., Oct. 28, 2009 (GLOBE NEWSWIRE) -- Flushing Financial
Corporation (the "Company") (Nasdaq:FFIC), the parent holding company for
Flushing Savings Bank, FSB (the "Bank"), announced today that it redeemed in
full, $70.0 million of preferred stock issued to the U.S. Treasury under the
Capital Purchase Program of the Troubled Asset Relief Program ("TARP"), plus
accrued dividends to date.

The Company also received notice from the U.S. Treasury yesterday that the
warrant granted to the Treasury under the same program was reduced by one-half
from 751,611 shares to 375,806 shares as a result of the Company's recent
successful public stock offering.

John R. Buran, President and Chief Executive Officer, stated: "We are pleased to
have completed the redemption of our TARP-related capital. The redemption was
approved by the Treasury following a recommendation by our regulator, the Office
of Thrift Supervision. We also plan to negotiate for the repurchase of our
remaining TARP warrant which was reduced by one-half, as a result of our recent
public stock offering of over $100 million.

"We have been throughout this recession a well-capitalized financial company
with strong earnings. We have continued to actively lend in our New York
Metropolitan market. The success of our recent stock offering and improved
tangible common equity has further improved our ability to compete in our
market. The new equity and redemption of TARP will allow us to continue to more
effectively grow as we leverage our strong capital position to deliver value to
our shareholders."

About Flushing Financial Corporation

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

Additional information on Flushing Financial Corporation may be obtained by
visiting the Company's website at http://www.flushingsavings.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this Press Release that are not descriptions of historical
facts may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking
information is inherently subject to risks and uncertainties, and actual results
could differ materially from those currently anticipated due to a number of
factors, which include, but are not limited to, risk factors discussed in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008
and in other documents filed by the Company with the Securities and Exchange
Commission from time to time. Forward-looking statements may be identified by
terms such as "may", "will", "should", "could", "expects", "plans", "intends",
"anticipates", "believes", "estimates", "predicts", "forecasts", "potential" or
"continue" or similar terms or the negative of these terms. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. The Company has no obligation to update these forward-looking
statements.

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CONTACT: Flushing Financial Corporation
Maria A. Grasso, Executive Vice President,
Chief Operating Officer
718-961-5400