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Note 9 - Borrowed Funds | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | 9. Borrowed Funds Borrowed funds are summarized as follows at December 31:
|  | 2017 |  | 2016
|  | Amount |  | Weighted Average Rate |  | Amount |  | Weighted Average Rate
|  | (Dollars in thousands)
FHLB-NY advances - fixed rate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in 2017 |  | $ | - |  |  |  | - | % |  | $ | 550,981 |  |  |  | 1.02 | %
Due in 2018 |  |  | 630,588 |  |  |  | 1.41 |  |  |  | 259,088 |  |  |  | 1.27 |
Due in 2019 |  |  | 257,216 |  |  |  | 1.55 |  |  |  | 149,112 |  |  |  | 1.48 |
Due in 2020 |  |  | 186,148 |  |  |  | 1.64 |  |  |  | 105,206 |  |  |  | 1.42 |
Due in 2021 |  |  | 125,016 |  |  |  | 1.57 |  |  |  | 94,803 |  |  |  | 1.47 |
Total FHLB-NY advances |  |  | 1,198,968 |  |  |  | 1.49 |  |  |  | 1,159,190 |  |  |  | 1.21 |
Subordinated debentures - fixed rate through 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in 2026 |  |  | 73,699 |  |  |  | 5.34 |  |  |  | 73,414 |  |  |  | 5.36 |
Junior subordinated debentures - adjustable rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due in 2037 |  |  | 36,986 |  |  |  | 4.86 |  |  |  | 33,959 |  |  |  | 4.28 |
Total borrowings |  | $ | 1,309,653 |  |  |  | 1.80 | % |  | $ | 1,266,563 |  |  |  | 1.53 | %
The FHLB-NY advances are fixed rate borrowings with no call provisions. The borrowings terms range from one day to five years. During 2016, $130.0 million in FHLB-NY advances at an average cost of 2.82% and $78.0 million in securities sold under agreements to repurchase, at an average cost of 3.80%, were extinguished prior to their scheduled maturity dates, incurring a prepayment penalty totaling $10.4 million. During 2015, $ 80.0 million in FHLB-NY fixed rate advances were modified from an average cost of 4.41% to an average cost of 3.46%. This modification extended the maturity on the advances by an average of 2.3 years without incurring a prepayment penalty. During 2017, there were no modifications or extinguishments prior to the borrowings contractual maturity dates. At December 31, 2017, the Bank was able to borrow up to $2,819.5 million from the FHLB-NY in Federal Home Loan Bank advances and letters of credit. As of December 31, 2017, the Bank had $1,600.8 million outstanding in combined balances of FHLB-NY advances and letters of credit. At December 31, 2017, the Bank also has unsecured lines of credit with other commercial banks totaling $100.0 million. As part of the Company’s strategy to finance investment opportunities and manage its cost of funds, the Company can enter 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 Statements of Financial Condition. The securities underlying the agreements are delivered to the broker-dealers or the FHLB-NY who arrange 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. As a condition of the repurchase agreements the Company is required to provide sufficient collateral. If the fair value of the collateral were to fall below the required level, the Company is obligated to pledge additional collateral. All the repurchase agreements were collateralized by mortgage-backed securities. At December 31, 2017 and 2016, the Company did not have any repurchase agreements outstanding. Information relating to these agreements at or for the years ended December 31 is as follows:
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Book value of collateral |  | $ | - |  |  | $ | - |  |  | $ | 131,421 |
Estimated fair value of collateral |  |  | - |  |  |  | - |  |  |  | 131,421 |
Average balance of outstanding agreements during the year |  |  | - |  |  |  | 64,087 |  |  |  | 116,000 |
Maximum balance of outstanding agreements at a month end during the year |  |  | - |  |  |  | 116,000 |  |  |  | 116,000 |
Average interest rate of outstanding agreements during the year |  |  | - |  |  |  | 3.26 | % |  |  | 3.22 | %
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. During the year ended December 31, 2016, the Holding Company issued subordinated debt with an aggregated principal amount of $75.0 million. The subordinated debt was issued at 5.25% fixed-to-floating rate maturing in 2026. The debt is fixed-rate for the first five years, after which it resets quarterly. Additionally, the debt is callable at par quarterly through its maturity date beginning December 15, 2021. The subordinated debentures were structured to qualify as Tier 2 capital for regulatory purposes. The following table shows the terms of the subordinated debt issued by the Holding Company:
|  | Subordinated Debentures
Issue Date |  |  | December 12, 2016 |
Initial Rate |  |  | 5.25 | %
First Reset Date |  |  | December 15, 2021 |
First Call Date |  |  | December 15, 2021 |
Spread over 3-month LIBOR |  |  | 3.44 | %
Maturity Date |  |  | December 15, 2026 |
We may not redeem the subordinated debt prior to December 15, 2021, except that the Company may redeem the subordinated debt at any time, at its option, in whole but not in part, subject to obtaining any required regulatory approvals, if (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the subordinated debt for U.S. federal income tax purposes, (ii) a subsequent event occurs that precludes the subordinated debt from being recognized as Tier 2 capital for regulatory capital purposes, or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended, in each case, at a redemption price equal to 100% of the principal amount of the subordinated debt plus any accrued and unpaid interest through, but excluding, the redemption date. 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 FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 + Details
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