XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Note 10 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 10. 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 trusts, which file separate Federal income tax returns as trusts, and FPFC, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. The Company remains subject to examination for its Federal, New York State and New Jersey income tax returns for the years ending on or after December 31, 2014. The Company is undergoing examinations of its Federal income tax return for 2015 and its New York City income tax returns for 2011, 2012 and 2013. The Company believes it has accrued for all potential amounts that may be due to all taxing authorities. Income tax provisions are summarized as follows for the years ended December 31:
|  | 2017 |  | 2016 |  | 2015
|  | (In thousands)
Federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 14,859 |  |  | $ | 34,996 |  |  | $ | 25,319 |
Deferred |  |  | 7,985 |  |  |  | (1,416 | ) |  |  | (3,476 | )
Total federal tax provision |  |  | 22,844 |  |  |  | 33,580 |  |  |  | 21,843 |
State and Local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 1,419 |  |  |  | 7,647 |  |  |  | 7,059 |
Deferred |  |  | 750 |  |  |  | (124 | ) |  |  | (1,735 | )
Total state and local tax provision |  |  | 2,169 |  |  |  | 7,523 |  |  |  | 5,324 |
Total income tax provision |  | $ | 25,013 |  |  | $ | 41,103 |  |  | $ | 27,167 |
On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was enacted, which among other things, reduced the federal income tax rate for corporations from 35% to 21% effective January 1, 2018. We recorded $3.8 million in additional tax expense during 2017 from the revaluation of our net deferred tax assets, resulting from the TCJA. The Company has recorded a deferred tax asset of $24.4 million, which reflects the tax impact from the TCJA. Additionally, on December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118” ) was released by the Securities and Exchange Commission (“SEC”) to address any concerns related to the accounting for income tax effects as a result of the TCJA in situations where a registrant may not have the necessary information available, prepared, or analyzed in reasonable detail to complete the required accounting in the reporting period including the enactment date. SAB 118 allows for a measurement period not to extend beyond one year from the TCJA enactment date to complete the necessary accounting. The income tax provision in the Consolidated Statements of Income has been provided at effective rates of 37.8%, 38.8% and 37.0% for the years ended December 31, 2017, 2016 and 2015, respectively. The effective rates differ from the statutory federal income tax rate as follows for the years ended December 31:
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Taxes at federal statutory rate |  | $ | 23,147 |  |  |  | 35.0 | % |  | $ | 37,106 |  |  |  | 35.0 | % |  | $ | 25,681 |  |  |  | 35.0 | %
Increase (reduction) in taxes resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and local income tax, net of Federal income tax benefit |  |  | 1,410 |  |  |  | 2.1 |  |  |  | 4,890 |  |  |  | 4.6 |  |  |  | 3,461 |  |  |  | 4.7 |
TCJA |  |  | 3,770 |  |  |  | 5.7 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Other |  |  | (3,314 | ) |  |  | (5.0 | ) |  |  | (893 | ) |  |  | (0.8 | ) |  |  | (1,975 | ) |  |  | (2.7 | )
Taxes at effective rate |  | $ | 25,013 |  |  |  | 37.8 | % |  | $ | 41,103 |  |  |  | 38.8 | % |  | $ | 27,167 |  |  |  | 37.0 | %
The components of the net deferred tax assets are as follows at December 31:
|  | 2017 |  | 2016
|  | (In thousands)
Deferred tax assets: |  |  |  |  |  |  |  |
Postretirement benefits |  | $ | 6,047 |  |  | $ | 7,800 |
Allowance for loan losses |  |  | 6,414 |  |  |  | 9,518 |
Stock based compensation |  |  | 2,808 |  |  |  | 3,525 |
Depreciation |  |  | 1,057 |  |  |  | 2,135 |
Unrealized loss on securities available for sale |  |  | 3,150 |  |  |  | 2,770 |
Fair value adjustment on financial assets carried at fair value |  |  | 168 |  |  |  | - |
Fair value hedges |  |  | 939 |  |  |  | 1,027 |
Adjustment required to recognize funded status of postretirement pension plans |  |  | 2,068 |  |  |  | 3,246 |
Gain on sale of buildings |  |  | 1,434 |  |  |  | 2,211 |
Other |  |  | 299 |  |  |  | 2,434 |
Deferred tax assets |  |  | 24,384 |  |  |  | 34,666 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
FPFC deferred income |  |  | 1,916 |  |  |  | - |
Cashflow hedges |  |  | 129 |  |  |  | - |
Fair value adjustment on financial assets carried at fair value |  |  | - |  |  |  | 150 |
Fair value adjustment on financial liabilities carried at fair value |  |  | 7,800 |  |  |  | 11,943 |
Other |  |  | 4,239 |  |  |  | 4,684 |
Deferred tax liabilities |  |  | 14,084 |  |  |  | 16,777 |
Net deferred tax asset included in other assets |  | $ | 10,300 |  |  | $ | 17,889 |
The Company has recorded a deferred tax asset of $24.4 million. 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 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 $14.1 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 December 31, 2017 and 2016. The Company does not have uncertain tax positions that are deemed material. The Company’s policy is to recognize interest and penalties on income taxes in operating expenses. During the three years ended December 31, 2017, the Company did not recognize any material amounts of interest or penalties on income taxes.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration