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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase | 12 Months Ended
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Dec. 31, 2014
Disclosure Text Block [Abstract] |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | 9. Borrowed Funds and Securities Sold Under Agreements to Repurchase Borrowed funds and securities sold under agreements to repurchase are summarized as follows at December 31:
|  | 2014 |  | 2013 |
|  | Amount |  |  | Weighted Average Rate |  |  | Amount |  |  | Weighted Average Rate |
|  | (Dollars in thousands) |
Repurchase agreements - fixed rate: |  |  |  |  |  |  |  |  |  |  |  |
Due in 2014 |  | $ | - |  |  |  | - | % |  | $ | 9,300 |  |  |  | 1.27 | %
Due in 2016 |  |  | 38,000 |  |  |  | 1.92 |  |  |  | 68,000 |  |  |  | 3.27 |
Due in 2017 |  |  | 38,000 |  |  |  | 4.16 |  |  |  | 38,000 |  |  |  | 4.16 |
Due in 2020 |  |  | 40,000 |  |  |  | 3.45 |  |  |  | 40,000 |  |  |  | 3.45 |
Total repurchase agreements - fixed rate |  |  | 116,000 |  |  |  | 3.18 |  |  |  | 155,300 |  |  |  | 3.41 |
FHLB-NY advances - fixed rate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in 2014 |  |  | - |  |  |  | - |  |  |  | 89,500 |  |  |  | 0.63 |
Due in 2015 |  |  | 185,551 |  |  |  | 0.80 |  |  |  | 166,732 |  |  |  | 1.21 |
Due in 2016 |  |  | 315,847 |  |  |  | 1.15 |  |  |  | 331,062 |  |  |  | 1.20 |
Due in 2017 |  |  | 305,525 |  |  |  | 2.12 |  |  |  | 174,160 |  |  |  | 2.79 |
Due in 2018 |  |  | 74,798 |  |  |  | 1.29 |  |  |  | 65,798 |  |  |  | 1.24 |
Due in 2019 |  |  | 30,000 |  |  |  | 1.83 |  |  |  | - |  |  |  | - |
Total FHLB-NY advances - fixed rate |  |  | 911,721 |  |  |  | 1.44 |  |  |  | 827,252 |  |  |  | 1.48 |
Junior subordinated debentures - adjustable rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in 2037 |  |  | 28,771 |  |  |  | 5.96 |  |  |  | 29,570 |  |  |  | 5.67 |
Total borrowings |  | $ | 1,056,492 |  |  |  | 1.75 | % |  | $ | 1,012,122 |  |  |  | 1.90 | %
During 2014, $66.9 million in long-term FHLB-NY advances at an average cost of 2.98% and $30.0 million in repurchase agreements at an average cost of 4.98% were prepaid while incurring a prepayment penalty totaling $5.2 million. Borrowings which have call provisions are summarized as follows at December 31, 2014:
|  | Amount |  |  | Rate |  |  | Maturity Date |  | Call Date
|  | (Dollars in thousands)
FHLB-NY advances - fixed rate |  | $ | 20,000 |  |  |  | 4.43 | % |  | 10/10/2017 |  | 1/9/2015
FHLB-NY advances - fixed rate |  |  | 30,000 |  |  |  | 4.60 |  |  | 10/10/2017 |  | 1/9/2015
FHLB-NY advances - fixed rate |  |  | 10,000 |  |  |  | 4.13 |  |  | 9/18/2017 |  | 3/17/2015
FHLB-NY advances - fixed rate |  |  | 10,000 |  |  |  | 4.32 |  |  | 9/18/2017 |  | 3/17/2015
FHLB-NY advances - fixed rate |  |  | 10,000 |  |  |  | 4.15 |  |  | 9/18/2017 |  | 3/18/2015
Repurchase agreements - fixed rate |  |  | 20,000 |  |  |  | 2.20 |  |  | 7/12/2016 |  | 1/12/2015
Repurchase agreements - fixed rate |  |  | 18,000 |  |  |  | 4.28 |  |  | 10/18/2017 |  | 1/20/2015
Repurchase agreements - fixed rate |  |  | 18,000 |  |  |  | 1.60 |  |  | 4/19/2016 |  | 1/20/2015
Repurchase agreements - fixed rate |  |  | 20,000 |  |  |  | 4.05 |  |  | 9/19/2017 |  | 3/19/2015
Repurchase agreements - fixed rate |  |  | 10,000 |  |  |  | 3.08 |  |  | 8/1/2020 |  | 2/1/2016
Repurchase agreements - fixed rate |  |  | 10,000 |  |  |  | 3.19 |  |  | 2/1/2020 |  | 2/1/2016
Repurchase agreements - fixed rate |  |  | 20,000 |  |  |  | 3.76 |  |  | 8/1/2020 |  | 2/1/2016
As part of the Company’s strategy to finance investment opportunities and manage its cost of funds, the Company enters into repurchase agreements with broker-dealers and the FHLB-NY. These agreements are recorded as financing transactions and the obligations to repurchase are reflected as a liability in the consolidated financial statements. The securities underlying the agreements were delivered to the broker-dealers or the FHLB-NY who arranged the transaction. The securities remain registered in the name of the Company and are returned upon the maturity of the agreement. The Company retains the right of substitution of collateral throughout the terms of the agreements. All the repurchase agreements are collateralized by mortgage-backed securities. Information relating to these agreements at or for the years ended December 31 is as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | (Dollars in thousands) |
Book value of collateral |  | $ | 142,925 |  |  | $ | 199,447 |  |  | $ | 228,620 |
Estimated fair value of collateral |  |  | 142,925 |  |  |  | 199,447 |  |  |  | 228,620 |
Average balance of outstanding agreements during the year |  |  | 137,824 |  |  |  | 172,944 |  |  |  | 185,300 |
Maximum balance of outstanding agreements at a month end during the year |  |  | 155,300 |  |  |  | 185,300 |  |  |  | 185,300 |
Average interest rate of outstanding agreements during the year (1) |  |  | 5.37 | % |  |  | 3.42 | % |  |  | 3.62 | %
| 1. | As discussed above, during the year ended December 31, 2014, the Company prepaid $30.0 million in FHLB-NY repurchase agreements at an average cost of 4.98% while incurring a prepayment penalty totaling $2.7 million. Excluding the prepayment penalty, the average interest rate of agreements during the year ended December 31, 2014 was 3.40%.
Pursuant to a blanket collateral agreement with the FHLB-NY, advances are secured by all of the Bank’s stock in the FHLB-NY and certain qualifying mortgage loans in an amount at least equal to 110% of the advances outstanding. The Bank may also pledge mortgage-backed and mortgage-related securities, and other securities not otherwise pledged. The Holding Company has three trusts formed under the laws of the State of Delaware for the purpose of issuing capital and common securities, and investing the proceeds thereof in junior subordinated debentures of the Holding Company. Each of these trusts issued $20.6 million of securities which had a fixed-rate for the first five years, after which they reset quarterly based on a spread over 3-month LIBOR. The securities were first callable at par after five years, and pay cumulative dividends. The Holding Company has guaranteed the payment of these trusts’ obligations under their capital securities. The terms of the junior subordinated debentures are the same as those of the capital securities issued by the trusts. The junior subordinated debentures issued by the Holding Company are carried at fair value in the consolidated financial statements. The table below shows the terms of the securities issued by the trusts.
|  | Flushing Financial Capital Trust II |  |  | Flushing Financial Capital Trust III |  |  | Flushing Financial Capital Trust IV |
Issue Date |  | June 20, 2007 |  |  | June 21, 2007 |  |  | July 3, 2007 |
Initial Rate |  |  | 7.14 | % |  |  | 6.89 | % |  |  | 6.85 | %
First Reset Date |  | September 1, 2012 |  |  | June 15, 2012 |  |  | July 30,2012 |
Spread over 3-month LIBOR |  |  | 1.41 | % |  |  | 1.44 | % |  |  | 1.42 | %
Maturity Date |  | September 1, 2037 |  |  | September 15, 2037 |  |  | July 30, 2037 |
The consolidated financial statements do not include the securities issued by the trusts, but rather include the junior subordinated debentures of the Holding Company.

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- Definition The entire disclosure for repurchase agreements (also known as repos), resale agreements (also known as reverse repurchase agreements or reverse repos), securities borrowed transactions, and securities loaned transactions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph m -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=34720971&loc=SL6224234-111729 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(m)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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