XML 46 R30.htm IDEA: XBRL DOCUMENT
v3.22.4

Derivative Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2022
Notes to Financial Statements |
Derivative Financial Instruments | 21. Derivative Financial Instruments At December 31, 2022 and 2021, the Company’s derivative financial instruments consist of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans totaling $273.6 million and $299.6 million at December 31, 2022 and December 31, 2021, respectively; 2) to facilitate risk management strategies for our loan customers with $221.2 million of swaps outstanding, which include $110.6 million with customers and $110.6 million with bank counterparties at December 31, 2022 and $228.0 million of swaps outstanding, which include $114.0 million with customers and $114.0 million with bank counterparties at December 31, 2021; and 3) to mitigate exposure to rising interest rates on certain short-term advances and brokered CDs totaling $871.5 million and $996.5 million at December 31, 2022 and December 31, 2021, respectively. ​ The Company’s derivative instruments are carried at fair value in the Company’s financial statements as part of Other assets for derivatives with positive fair values and Other liabilities for derivatives with negative fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship. At December 31, 2022 and 2021, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges. At December 31, 2022 and 2021, derivatives with a combined notional amount of $221.2 million and $228.0 million, respectively, were not designated as hedges. At December 31, 2022 and 2021, derivatives with a combined notional amount of $273.6 million and $299.6 million were designated as fair value hedges. At December 31, 2022 and 2021, derivatives with a combined notional amount of $871.5 million and $996.5 million, respectively, were designated as cash flow hedges. For cash flow hedges, the changes in the fair value of the derivative is reported in accumulated other comprehensive income (loss), net of tax. Amounts in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged forecasted transaction effects earnings. During the year ended December 31, 2022, $4.3 million was reclassified from accumulated other comprehensive income (loss) to interest expense. The estimated amount to be reclassified in next 12 months out of accumulated other comprehensive income (loss) into earnings is $9.0 million. Changes in the fair value of interest rate swaps not designated as hedges are reflected in “Net loss from fair value adjustments” in the Consolidated Statements of Income. ​ The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2022 |  | December 31, 2021
​ | ​ | Notional | ​ | ​ | ​ | ​ | Notional | ​ | ​ | ​
​ |  | Amount |  | Fair Value (1) |  | Amount |  | Fair Value (1)
​ | ​ | (In thousands)
Interest rate swaps (cash flow hedge) | ​ | $ | 700,750 | ​ | $ | 31,716 | ​ | $ | 355,000 | ​ | $ | 7,328
Interest rate swaps (fair value hedge) | ​ | ​ | 273,607 | ​ | ​ | 24,673 | ​ | ​ | — | ​ | ​ | —
Interest rate swaps (non-hedge) | ​ | ​ | 110,598 | ​ | ​ | 18,197 | ​ | ​ | 113,988 | ​ | ​ | 3,355
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (cash flow hedge) | ​ |  | 170,750 | ​ |  | (210) | ​ |  | 641,500 | ​ |  | (9,387)
Interest rate swaps (fair value hedge) | ​ |  | — | ​ |  | — | ​ |  | 299,555 | ​ |  | (12,329)
Interest rate swaps (non-hedge) | ​ |  | 110,598 | ​ |  | (18,197) | ​ |  | 113,988 | ​ |  | (3,355)
Total derivatives | ​ | $ | 1,366,303 | ​ | $ | 56,179 | ​ | $ | 1,524,031 | ​ | $ | (14,388)
​
(1) | Derivatives in a net positive position are recorded as “Other assets” and derivatives in a net negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.
​ ​ ​ ​ The following table presents information regarding the Company’s fair value hedged items for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Cumulative Amount
​ | ​ | ​ | ​ | ​ | ​ | of the Fair Hedging Adjustment
Line Item in the Consolidated | ​ | ​ | Carrying Amount of the | ​ | ​ | Included in the Carrying Amount of
Statement of Financial Condition in | ​ | ​ | Hedged Assets | ​ | ​ | the Hedged Assets
Which the Hedged Item is Included | ​ | ​ | At December 31, | ​ | ​ | At December 31,
(In thousands) | ​ | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2022 | ​ | ​ | 2021
Loans: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Multi-family residential | ​ | $ | 82,613 | ​ | $ | 113,730 | ​ | $ | (10,480) | ​ | $ | 7,608
Commercial real estate | ​ | ​ | 167,353 | ​ | ​ | 192,694 | ​ | ​ | (15,442) | ​ | ​ | 3,477
Commercial business and other | ​ | ​ | — | ​ | ​ | 6,298 | ​ | ​ | — | ​ | ​ | 122
Total | ​ | $ | 249,966 | ​ | $ | 312,722 | ​ | $ | (25,922) | ​ | $ | 11,207
​ ​ ​ ​ The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ |  |  | For the years ended
​ | ​ | ​ | ​ | December 31,
(In thousands) | Affected Line Item in the Statements Where Net Income is Presented |  |  | 2022 |  | 2021 |  | 2020
Financial Derivatives: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
​ | Other interest expense | ​ | ​ | $ | - | ​ | $ | (305) | ​ | $ | (434)
​ | Net gain (loss) from fair value adjustments | ​ | ​ | ​ | - | ​ | ​ | 978 | ​ | ​ | (2,325)
Interest rate swaps (non-hedge) | ​ | ​ | ​ | ​ | - | ​ | ​ | 673 | ​ | ​ | (2,759)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (fair value hedge) | Interest and fees on loans | ​ | ​ | ​ | 96 | ​ | ​ | (3,481) | ​ | ​ | (5,226)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Other interest expense | ​ | ​ | ​ | (2,218) | ​ |  | (10,554) | ​ |  | (6,703)
​ | Deposit | ​ | ​ | ​ | 2,504 | ​ | ​ | (139) | ​ | ​ | -
Interest rate swaps (cash flow hedge) | ​ | ​ | ​ | ​ | 286 | ​ | ​ | (10,693) | ​ | ​ | (6,703)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (loss) | ​ | ​ | ​ | $ | 382 | ​ | $ | (13,501) | ​ | $ | (14,688)
​ The Company’s interest rate swaps are subject to master netting arrangements between the Company and its three designated counterparties. The Company has not made a policy election to offset its derivative positions. The interest rate swaps with borrowers are cross collateralized with the underlying loan and, therefore, there is no posted collateral. Interest rate swap agreements with third-party counterparties contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount and receive collateral for agreements in a net asset position. The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition as of the dates indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2022
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross Amounts Not Offset in the | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Consolidated Statements of | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross Amount Offset in | ​ | Net Amount of Assets | ​ | Financial Condition | ​ | ​ | ​
​ | ​ | Gross Amount of | ​ | the Statements | ​ | Presented in the | ​ | Financial | ​ | Cash Collateral | ​ | ​ | ​
(In thousands) |  | Recognized Assets |  | of Condition |  | Statements of Condition |  | Instruments |  | Received |  | Net Amount
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​
Interest rate swaps | ​ | $ | 74,586 | ​ | $ | — | ​ | $ | 74,586 | ​ | $ | — | ​ | $ | 72,185 |  | $ | 2,401
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross Amounts Not Offset in the | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Consolidated Statements of | ​ | ​ | ​
​ | ​ | Gross Amount of | ​ | Gross Amount Offset in | ​ | Net Amount of Liabilities | ​ | Financial Condition | ​ | ​ | ​
​ | ​ | Recognized | ​ | the Statements | ​ | Presented in the | ​ | Financial | ​ | Cash Collateral | ​ | ​
(In thousands) |  | Liabilities |  | of Condition |  | Statements of Condition |  | Instruments |  | Pledged |  | Net Amount
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​
Interest rate swaps | ​ | $ | 18,407 | ​ | $ | — | ​ | $ | 18,407 | ​ | $ | — | ​ | $ | — |  | $ | 18,407
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2021
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross Amounts Not Offset in the | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Consolidated Statements of | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross Amount Offset in | ​ | Net Amount of Assets | ​ | Financial Condition | ​ | ​ | ​
​ | ​ | Gross Amount of | ​ | the Statements | ​ | Presented in the | ​ | Financial | ​ | Cash Collateral | ​ | ​ | ​
(In thousands) |  | Recognized Assets |  | of Condition |  | Statements of Condition |  | Instruments |  | Received |  | Net Amount
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​
Interest rate swaps | ​ | $ | 10,683 | ​ | $ | — | ​ | $ | 10,683 | ​ | $ | — | ​ | $ | — |  | $ | 10,683
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross Amounts Not Offset in the | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Consolidated Statements of | ​ | ​ | ​
​ | ​ | Gross Amount of | ​ | Gross Amount Offset in | ​ | Net Amount of Liabilities | ​ | Financial Condition | ​ | ​ | ​
​ | ​ | Recognized | ​ | the Statements | ​ | Presented in the | ​ | Financial | ​ | Cash Collateral | ​ | ​
(In thousands) |  | Liabilities |  | of Condition |  | Statements of Condition |  | Instruments |  | Pledged |  | Net Amount
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​
Interest rate swaps | ​ | $ | 25,071 | ​ | $ | — | ​ | $ | 25,071 | ​ | $ | — | ​ | $ | 21,527 |  | $ | 3,544
​
Correction of an Error on the Consolidated Statements of Cash Flows
The Company identified an error in its consolidated statements of cash flows as of September 30, 2022 and June 30, 2022 for the change in cash collateral related to certain derivative financial instruments. The Company determined that for the nine months ended September 30, 2022 and six months ended June 30, 2022, the change in cash collateral amount was understated. The Company reviewed the impact of this error on the prior periods and determined that the error was not material to the prior period consolidated financial statements. The impact of the error as corrected decreased net cash used in investing activities by $25.1 million and $16.7 million for the nine months ended September 30, 2022 and six months ended June 30, 2022, respectively, and increased the net increase in cash, cash equivalents and restricted cash by equivalent amounts.

X
- Definition n/a. + References No definition available. + Details
Name: | ffic_NotesToFinancialStatementsAbstract
Namespace Prefix: | ffic_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration