UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 Flushing Financial Corp. (Name of Issuer) Common Stock (Title of Class of Securities) 343873105 (CUSIP Number) December 11, 2006 (Date of Event Which Requires Filing of this Statement) CUSIP No. 343873105 Item 1: REPORTING PERSONS Pinnacle Associates Ltd. (Tax ID: 13-3220717) Item 4: CITIZENSHIP New York Corporation Item 5: SOLE VOTING POWER 1,029,407 **see Note 1** Item 6: SHARED VOTING POWER None Item 7: SOLE DISPOSITIVE POWER 1,029,407 **see Note 1** Item 8: SHARED DISPOSITIVE POWER None Item 9: AGGREGATE AMOUNT BENEFICIALLY OWNED 1,029,407 ** see Note 1 ** Item 11: PERCENT OF CLASS REPRESENTED BY ITEM 9 0.00 Item 12: TYPE OF REPORTING PERSON IA ----------------------------------------------------------- ITEM 1(A). NAME OF ISSUER Flushing Financial Corp. ITEM 1(B). ADDRESS OF ISSUER 1979 Marcus Avenue, Suite E140 Lake Success, NY 11042 ITEM 2(A). NAME OF PERSON FILING PINNACLE ASSOCIATES LTD. ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE 335 Madison Avenue, 11th Floor, New York, NY 10017 ITEM 2(C). CITIZENSHIP New York Corporation ITEM 2(D). TITLE OF CLASS OF SECURITIES Common Stock ITEM 2(E). CUSIP NUMBER 343873105 ITEM 3. This statement is filed pursuant to Rule 13d-1 (b), or 13d-2 (b) and the person filing is an investment advisor registered under section 203 of the Investment Advisers Act of 1940. ITEM 4. OWNERSHIP ITEM 4(a). AMOUNT BENEFICIALLY OWNED 1,029,407 ** see Note 1 ** ITEM 4(b). PERCENT OF CLASS 0.00 ITEM 4(c). NUMBER OF SHARE AS TO WHICH SUCH PERSON HAS: (i). SOLE POWER TO VOTE OR DIRECT THE VOTE 1,029,407 ** see Note 1 ** (ii). SHARED POWER TO VOTE OR TO DIRECT THE VOTE None (iii). SOLE POWER TO DISPOSE OR TO DIRECT DISPOSITION OF 1,029,407 ** see Note 1 ** (iv). SHARE POWER TO DISPOSE OR TO DIRECT DISPOSISTION OF None **Note 1** Pinnacle Associates, Ltd. ("Pinnacle"), an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, furnishes investment advice on a discretionary basis to its clients. In its role as investment adviser, Pinnacle possesses voting and/or investment power over the securities of the Issuer described in this schedule. ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS If this statement is being filed to report the fact that the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following: [X] ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON All securities reported in this schedule are owned by advisory clients of Pinnacle Associates, Ltd., no one of which to the knowledge of Pinnacle Associates, Ltd. owns more than 5% of the class. ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY: Not Applicable ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP Not Applicable ITEM 9. NOTICE OF DISSOLUTION OF GROUP Not Applicable ITEM 10. CERTIFICATION By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired in the ordinary course of business and were not acquired for the purpose of and do not have the effect of changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transaction having such purposes or effect. After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete are correct. Signature Gail Mannix Chief Compliance Officer December 13, 2006