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Note 12 - Income Taxes | 6 Months Ended
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Jun. 30, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 12. Income Taxes Flushing Financial Corporation files consolidated Federal and combined New York State and New York City income tax returns with its subsidiaries, with the exception of the Company’s trusts, which file separate Federal income tax returns as trusts, and Flushing Preferred Funding Corporation, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. Income tax provisions are summarized as follows:
|  | For the three months |  | For the six months
|  | ended June 30, |  | ended June 30,
(In thousands) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Federal: |  |  |  |  |  |  |  |
Current |  | $ | 6,653 |  |  | $ | 16,228 |  |  | $ | 9,605 |  |  | $ | 19,888 |
Deferred |  |  | (1,077 | ) |  |  | (1,025 | ) |  |  | 720 |  |  |  | 62 |
Total federal tax provision |  |  | 5,576 |  |  |  | 15,203 |  |  |  | 10,325 |  |  |  | 19,950 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 1,618 |  |  |  | 5,976 |  |  |  | 1,419 |  |  |  | 6,361 |
Deferred |  |  | (419 | ) |  |  | (462 | ) |  |  | 285 |  |  |  | 21 |
Total state and local tax provision |  |  | 1,199 |  |  |  | 5,514 |  |  |  | 1,704 |  |  |  | 6,382 |
Total income tax provision |  | $ | 6,775 |  |  | $ | 20,717 |  |  | $ | 12,029 |  |  | $ | 26,332 |
The effective tax rate was 34.7% and 40.5% for the three months ended June 30, 2017 and 2016, respectively, and 32.5% and 39.7% for the six months ended June 30, 2017 and 2016, respectively. The decrease in the effective tax rate reflects the impact of a change in the treatment of deductible stock compensation expense from prior periods. In prior periods the tax impact of deductible stock compensation expense flowed through additional paid-in-capital and did not have an impact on the Company’s effective tax rate, in contrast, in 2017 the impact is passed through the provision for income taxes. Additionally, the effective tax rate for 2016 reflects the reduced impact of preferential tax items, because of the gain on sale on one of our properties in Flushing, Queens recorded during the three months ended June 30, 2016. The effective rates differ from the statutory federal income tax rate as follows:
|  | For the three months |  | For the six months
|  | ended June 30, |  | ended June 30,
(dollars in thousands) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Taxes at federal statutory rate |  | $ | 6,825 |  |  |  | 35.0 | % |  | $ | 17,903 |  |  |  | 35.0 | % |  | $ | 12,955 |  |  |  | 35.0 | % |  | $ | 23,215 |  |  |  | 35.0 | %
Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and local income tax, net of Federal income tax benefit |  |  | 780 |  |  |  | 4.0 |  |  |  | 3,584 |  |  |  | 7.0 |  |  |  | 1,108 |  |  |  | 3.0 |  |  |  | 4,148 |  |  |  | 6.3 |
Other |  |  | (830 | ) |  |  | (4.3 | ) |  |  | (770 | ) |  |  | (1.5 | ) |  |  | (2,034 | ) |  |  | (5.5 | ) |  |  | (1,031 | ) |  |  | (1.6 | )
Taxes at effective rate |  | $ | 6,775 |  |  |  | 34.7 | % |  | $ | 20,717 |  |  |  | 40.5 | % |  | $ | 12,029 |  |  |  | 32.5 | % |  | $ | 26,332 |  |  |  | 39.7 | %
The Company has recorded a deferred tax asset of $32.4 million at June 30, 2017, which is included in “Other Assets” in the Consolidated Statements of Financial Condition. This represents the anticipated net federal, state and local tax benefits expected to be realized in future years upon the utilization of the underlying tax attributes comprising this balance. The Company has reported taxable income for federal, state, and local tax purposes in each of the past three fiscal years. In management’s opinion, in view of the Company’s previous, current and projected future earnings trend, the probability that some of the Company’s $16.9 million deferred tax liability can be used to offset a portion of the deferred tax asset, as well as certain tax planning strategies, it is more likely than not that the deferred tax asset will be fully realized. Accordingly, no valuation allowance was deemed necessary for the deferred tax asset at June 30, 2017.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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