Press Releases

LAKE SUCCESS, N.Y., Feb. 10, 2012 (GLOBE NEWSWIRE) -- Flushing Financial Corporation (the "Company") (Nasdaq: FFIC), the parent holding company for Flushing Savings Bank, FSB (the "Bank"), today announced that, David W. Fry, the Company's Executive Vice President and Chief Financial Officer, will be participating in the Sterne Agee 2012 Financial Institutions Investor Conference held on February 13 and 14, 2012.

Mr. Fry will be presenting on February 14, 2012, at 11:00a.m. Local time. Mr. Fry will also be making presentations to individual institutional investors throughout the two days of the conference.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this Press Release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2010 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.

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

CONTACT: David Fry
         Executive Vice President and Chief Financial Officer
         Flushing Financial Corporation
         (718) 961-5400

NEW YORK--(BUSINESS WIRE)-- In the course of routine surveillance, Fitch Ratings takes the following action on the state of Maine's general obligation (GO) bonds:

--Approximately $500 million GO bonds affirmed at 'AA+'.

The Rating Outlook is revised to Negative from Stable.

SECURITY

The bonds are GOs of the state to which its full faith, credit, and taxing power are pledged. Constitutional provisions provide for the payment of GO principal and interest from first general fund revenues should the debt service appropriation not be sufficient.

KEY RATING DRIVERS

NEGATIVE CREDIT TREND: The revision of the Outlook to Negative from Stable reflects the state's reduced financial flexibility in the context of a below average economic recovery and challenging demographic profile. Financial margins are narrow and, following reserve depletion in the downturn, the state's current budget would not meaningfully bolster the reserve position.

CONSERVATIVE DEBT POSITION: Debt ratios remain low and amortization of GO bonds is rapid, with all principal maturing within 10 years. Recent changes to the pension system have reduced unfunded liabilities and, accordingly, lowered annual contribution requirements.

RESPONSIVE FINANCIAL MANAGEMENT: Frequent reviews of economic forecasts and financial projections allow the state to adjust to changing conditions. The state's active citizen initiative and referendum environment creates a level of operating and financial uncertainty, although tax-related initiatives over the past five years have not been successful.

SLOWLY GROWING BUT STABLE ECONOMY: While the state's economy has remained relatively stable compared to broader national trends, the recovery that is underway is sluggish as the manufacturing sector struggles to recoup losses.

WHAT COULD TRIGGER A RATING ACTION

Maintenance of the current rating level is dependent upon the state's ability to achieve balanced operations in the current biennium and meaningfully rebuild reserves depleted during the recession.

CREDIT PROFILE

Maine's 'AA+' GO bond rating reflects its low and rapidly amortizing debt burden, relative stability in the overall economy, and history of taking action to maintain budgetary balance. The Outlook revision to Negative from Stable reflects the state's narrow financial margins, difficulty in achieving budgetary balance, the pressures of an aging demographic profile, and an environment of slow emergence from the recession. It is Fitch's expectation that continued prudence in fiscal management will allow the state to maintain narrowly balanced financial operations despite spending pressures in education and health and human services in an environment of tax reductions.

Maine's economy has expanded from its traditional industries of manufacturing, natural resources and tourism, with gains in trade, education, and health services adding considerable stability to the employment base. Maine's economy is generally less volatile than the U.S. economy, even as it tends to grow more slowly. Leading into the recession, Maine's nonfarm employment grew by less than 1% per year between 2004 and 2007 compared to national increases between 1.1% and 1.8% per year. Job losses were more severe than the U.S. during the height of the recession, declining 5% in 2009 while U.S. nonfarm employment fell 4.4%; however, Maine began to rebound sooner, growing 1.1% in 2010 while U.S. nonfarm employment continued to shrink 0.8%. Recent performance has been weaker, with December 2011 nonfarm employment flat while the U.S. has continued expanding at 1.3%. Maine's unemployment rate typically is comfortably below the U.S. rate and was 82% of the U.S. rate in December at 7%. Gains and losses in personal income have paralleled the trends in Maine's employment, with modest income gains during the upswing and relative stability during the decline. The state ranked 31st among the states by measure of personal income per capita in 2010, equal to 92% of the U.S. level but is among the slowest growing coming out of the recession. Maine's median age is the oldest among the states, 42.2 years compared to 36 years for the U.S., contributing to uncertainty about future workforce growth.

Fiscal operations were challenged by declining revenues through the course of the recession, although frequent reviews of economic forecasts and financial projections allow the state to adjust to changing conditions. Revenue projections for both the fiscal 2008-2009 biennium and the 2010-2011 biennium were revised downward on several occasions, with pressure on sales and income taxes driving the modifications. In order to address the budget gaps resulting from these revenue declines, state officials took swift action to reduce spending, with service cuts, reductions in K-12 and higher education funding, modifications to Medicaid, other government streamlining, and ultimately, use of the state's reserve funds.

Although revenues rebounded in fiscal 2011, the current budget plan includes only limited rebuilding of reserves. The $6.1 billion fiscal 2012-13 biennial budget included $150 million in tax cuts, lower pension payments following pension reform described below, and a continued deferral of a voter initiated requirement for the state to cover 55% of the cost of K-12 education. Funding of Medicaid (Mainecare) in the budget has proven inadequate, resulting in $221 million gap to be addressed in the current and next fiscal year. The Governor has proposed extensive reform to close the gap, including, tightening eligibility for the senior prescription plan, lowering income limits for parents (to 133% from 200%), and eliminating coverage for childless adults. The state appropriations committee has sent to the house floor a supplemental budget that closes a portion of this gap, incorporating some of the changes the governor has proposed, with additional action expected. The administration expects to submit additional supplemental budget adjustments affecting the non-Medicaid portion of the budget.

Maine's debt ratios are low and amortization of GO bonds is rapid, with all principal due within 10 years. Debt is strongly secured by constitutional provisions requiring GO principal and interest to be a first charge on the general fund. Net tax-supported debt totals approximately $1 billion, equal to 2.2% of 2010 personal income, a debt ratio considered the low end of moderate. Funding levels for Maine's pension system have declined over the past 10 years to 66% as of June 30, 2010; however, recent changes to the pension plan, including a three-year freeze and subsequent cap on COLAs and an increase in the retirement age for new and non-vested employees, have reportedly reduced the unfunded liability by as much as 40%, although actuarial reports post-reform have yet to be released.

The initiative process remains active in Maine, especially for tax and expenditure limits. A taxpayer bill of rights initiative (TABOR II) was soundly defeated on the November 2009 ballot, enabling the state's previously enacted legislation to prevail. This legislation set expenditure limits while increasing education funding and property tax relief.

In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in Fitch's report 'Tax-Supported Rating Criteria', this action was additionally informed by information from IHS Global Insight.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria', dated Aug. 15, 2011;

--'U.S. State Government Tax-Supported Rating Criteria', dated Aug. 15, 2011.

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. State Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648897

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Primary AnalystKaren Krop, +1-212-908-0661Senior DirectorFitch, Inc.One State Street PlazaNew York, NY 10004orSecondary AnalystMarcy Block, +1-212-908-0239Senior DirectororCommittee ChairpersonDoug Offerman, +1-212-908-0881orMedia RelationsSandro Scenga, +1-212-908-0278 (New York)sandro.scenga@fitchratings.com

Source: Fitch Ratings

OAK BROOK, IL -- (MARKET WIRE) -- 02/10/12 -- The Private Fund Advisor Registration deadline, as required by the Dodd-Frank Act, is fast approaching with March 30 only weeks away. Many experts are advising that all paperwork be filed by February 14 to ensure compliance with the deadline. Millennium Trust Company's Private Fund Custody services can provide a solution for Advisors to Private Funds, registering with the SEC for the first time, that need a Qualified Custodian for their private funds holding both traditional and Alternative Assets.

Challenges for Advisors seeking a Qualified Custodian for Alternative Assets One of the challenges for many Advisors completing the registration process and the ADV form for the first time is identifying a Qualified Custodian to hold the sometimes unique underlying assets of private funds. Private stock, promissory notes and mortgages, real estate, interest receivables and investments in limited liability companies or limited partnerships are just some of the more challenging assets to custody.

Over the past few years many large financial institutions have chosen to end or severely limit the custody of Alternative Assets creating a 'custody void'. Many advisors and industry professionals agree that it may be exceptionally challenging to find a custodian with the expertise to custody Private Funds with underlying Alternative Assets and working knowledge of the requirements of the amended Custody Rule 206(4)-2 of the Investment Advisers Act of 1940.

Millennium Trust's Private Fund Custody Solution Millennium Trust leverages its custody experience of a wide range of Alternative Assets to deliver a Private Fund Custody Service specifically designed for Registered Investment Advisors to Private Funds who need the services of a Qualified Custodian. Millennium's Private Fund Custody solution is suitable for most types of private funds sometimes referred to as pooled investment vehicles, advisor controlled funds, private equity funds, limited partnerships, limited liability companies, other private investments, in addition to other alternative investments.

Millennium's strength is its ability and willingness to deliver customized custody services to meet the ever-changing needs of Registered Investment Advisors, investment firms and investment managers. Since the formal program launch in March 2010, Millennium's Private Fund Custody service has realized significant growth.

For more information on Millennium Trust Company and its Private Fund Custody Service offering, contact: Sandra Reese, SVP & Program Manager by email: sreese@mtrustcompany.com or by phone: 630-368-5645.

About Millennium Trust Company Millennium Trust Company is an experienced Qualified Custodian for both traditional and alternative assets. Millennium provides custody services for alternative and traditional assets in IRAs, Solo 401(k)s and taxable accounts, offers private fund custody services, creates customized Automatic Rollover programs, provides integrated Health Savings Account solutions and designs unique trading platforms for Investment Advisors. Additional information about Millennium Trust Company may be found at www.mtrustcompany.com.

Millennium Trust performs the duties of a custodian and, as such, does not provide investment advice or sell investments, nor offer any tax or legal advice.

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Contact Information

Mary Hackbarth
SVP, Director of Marketing
Millennium Trust Company
630.368.5642
Email Contact

820 Jorie Blvd.
Suite 420
Oak Brook, Illinois 60523
800.258.7878
www.mtrustcompany.com

Source: Millennium Trust Company