Exhibit
4.2
FLUSHING
FINANCIAL CORPORATION,
as
Issuer
and
WILMINGTON
TRUST, NATIONAL ASSOCIATION,
as
Trustee
SECOND
SUPPLEMENTAL INDENTURE
Dated
as of August 24, 2022
to
SUBORDINATED
INDENTURE
Dated
as of November 22, 2021
6.000% Fixed-to-Floating
Rate Subordinated Notes Due 2032
TABLE
OF CONTENTS
Page
| ARTICLE
1 DEFINITIONS |
1 |
| |
|
| |
Section 1.01. Relation to Base Indenture |
1 |
| |
Section 1.02. Definition of Terms |
1 |
| |
|
| ARTICLE
2 ESTABLISHMENT OF THE 2032 SERIES AND GENERAL TERMS AND CONDITIONS OF THE NOTES |
8 |
| |
Section 2.01. Establishment of the Series of the Notes
and Designation |
8 |
| |
Section 2.02. Maturity |
8 |
| |
Section 2.03. Form, Payment and Appointment |
9 |
| |
Section 2.04. Global Note |
9 |
| |
Section 2.05. Interest |
9 |
| |
Section 2.06. Subordination |
12 |
| |
Section 2.07. Events of Default; Acceleration |
15 |
| |
Section 2.08. No Sinking Fund |
15 |
| |
Section 2.09. No Conversion or Exchange Rights |
15 |
| |
Section 2.10. No Defeasance or Covenant Defeasance |
15 |
| |
|
| ARTICLE
3 REDEMPTION OF THE NOTES |
15 |
| |
Section 3.01. Optional Redemption |
15 |
| |
Section 3.02. Redemption of Special Events |
15 |
| |
Section 3.03. Notice to Trustee |
15 |
| |
Section 3.04. Partial Redemption |
16 |
| |
Section 3.05. Notice to Holders |
16 |
| |
|
| ARTICLE
4 FORM OF NOTES |
17 |
| |
Section 4.01. Form of Notes |
17 |
| |
|
| ARTICLE
5 SUPPLEMENTAL INDENTURES |
17 |
| |
Section 5.01. Supplemental Indentures without Consent
of Holders |
17 |
| |
|
| ARTICLE
6 IMMUNITY OF STOCKHOLDERS, EMPLOYEES, AGENTS, OFFICERS AND DIRECTORS |
17 |
| |
Section 6.01. Indenture and Notes Solely Corporate Obligations |
17 |
| |
|
| ARTICLE
7 MISCELLANEOUS |
17 |
| |
Section 7.01. Ratification of Base Indenture |
17 |
| |
Section 7.02. Trustee Not Responsible for Recitals |
17 |
| |
Section 7.03. New York Law To Govern |
18 |
| |
Section 7.04. Severability |
18 |
| |
Section 7.05. Counterparts |
18 |
| |
Section 7.06. Benefits of Second Supplemental Indenture |
18 |
| |
Section 7.07. Conflict with Base Indenture |
18 |
| |
Section 7.08. Provisions of Trust Indenture Act Controlling |
18 |
| |
Section 7.09. Successors |
18 |
THIS
SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”), dated as of August 24, 2022, between
FLUSHING FINANCIAL CORPORATION, a corporation duly organized and existing under the laws of the State of Delaware (the “Company”),
and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association duly organized and existing under the laws of the United States,
as Trustee (in such capacity, the “Trustee”), under the Base Indenture (as hereinafter defined).
RECITALS
WHEREAS,
the Company and the Trustee have heretofore executed and delivered the Subordinated Indenture, dated as of November 22, 2021 (the “Base
Indenture” and, as supplemented and amended by the First Supplemental Indenture dated as of November 22, 2021 and as hereby
supplemented and amended, the “Indenture”), providing for the establishment from time to time of one or more series
(each, a “Series”) of securities evidencing indebtedness of the Company (hereinafter called the “Securities”),
and the issuance by the Company from time to time of Securities under the Indenture;
WHEREAS, Section
10.01(c) of the Base Indenture provides that the Company and the Trustee may enter into an indenture supplemental to the Base
Indenture to establish a Series of Securities thereunder and the form and terms, provisions and conditions of Securities of such Series
of Securities as permitted by Section 2.01 and Section 2.03 of the Base Indenture;
WHEREAS,
pursuant to Section 2.01 of the Base Indenture, the Company desires to establish a new Series of Securities under the
Indenture to be known as its “6.000% Fixed-to-Floating Rate Subordinated Notes Due 2032” (the “2032 Series”)
and to establish and set the form and terms, provisions and conditions of the notes of the 2032 Series (the “Notes”),
as provided in this Second Supplemental Indenture and to provide for the initial issuance of Notes of the 2032 Series in the aggregate
principal amount of $65,000,000; and
WHEREAS,
the Company has requested that the Trustee execute and deliver this Second Supplemental Indenture; and the Company confirms all requirements
necessary to make this Second Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, and to
make the Notes, when executed by the Company and authenticated and delivered by the Trustee in accordance with this Indenture, the valid,
binding and enforceable obligations of the Company, have been satisfied; and the execution and delivery of this Second Supplemental Indenture
has been duly authorized in all respects.
NOW,
THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE
1
DEFINITIONS
Section
1.01. Relation to Base Indenture. This Second Supplemental Indenture constitutes an integral part of, and amends and supplements,
the Base Indenture as set forth herein.
Section
1.02. Definition of Terms. For all purposes of this Second Supplemental Indenture:
(a) Capitalized
terms used herein without definition shall have the meanings set forth in the Base Indenture, provided that if the definition of a capitalized
term defined in this Second Supplemental Indenture conflicts with the definition of that capitalized term in the Base Indenture, the
definition of that capitalized term in this Second Supplemental Indenture shall control for purposes of this Second Supplemental Indenture
and the Notes;
(b) a
term defined anywhere in this Second Supplemental Indenture has the same meaning throughout this Second Supplemental Indenture;
(c) the
singular includes the plural and vice versa;
(d) headings
are for convenience of reference only and do not affect interpretation;
(e) unless
otherwise specified or unless the context requires otherwise, (i) all references in this Second Supplemental Indenture to Sections refer
to the corresponding Sections of this Second Supplemental Indenture and (ii) the terms “herein,” “hereof,” “hereunder”
and any other word of similar import refer to this Second Supplemental Indenture; and
(f) for
purposes of this Second Supplemental Indenture and the Notes, the following terms have the meanings given to them in this Section
1.02(f):
“2032
Series” shall have the meaning set forth in the Recitals.
“Authenticating
Agent” means any Person authorized by the Trustee pursuant to Section 7.15 of the Base Indenture to act on behalf of the Trustee
to authenticate the Notes.
“Base
Indenture” shall have the meaning set forth in the Recitals.
“Benchmark”
means, initially, Three-Month Term SOFR; provided that, if the Calculation Agent determines on or prior to the Reference Time for any
Floating Rate Interest Period that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect
to Three-Month Term SOFR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement for such
Floating Rate Interest Period and any subsequent Floating Rate Interest Periods.
“Benchmark
Replacement” means the Interpolated Benchmark with respect to the then-current Benchmark, plus the Benchmark Replacement Adjustment
for such Benchmark; provided that if (a) the Calculation Agent cannot determine the Interpolated Benchmark as of the Benchmark Replacement
Date or (b) the then-current Benchmark is Three-Month Term SOFR and a Benchmark Transition Event and its related Benchmark Replacement
Date have occurred with respect to Three-Month Term SOFR (in which event no Interpolated Benchmark with respect to Three-Month Term SOFR
shall be determined), then “Benchmark Replacement” means the first alternative set forth in the order below that can be determined
by the Calculation Agent as of the Benchmark Replacement Date and is administratively feasible:
(1) Compounded
SOFR;
(2) the
sum of: (a) the alternate rate that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor and (b) the Benchmark Replacement Adjustment;
(3) the
sum of: (a) the ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment;
(4) the
sum of: (a) the alternate rate that has been selected by the Calculation Agent as the replacement for the then-current Benchmark for
the applicable Corresponding Tenor, giving due consideration to any industry-accepted rate as a replacement for the then-current Benchmark
for Dollar-denominated floating rate securities at such time, and (b) the Benchmark Replacement Adjustment.
“Benchmark
Replacement Adjustment” means the first alternative set forth in the order below that can be determined by the Calculation
Agent as of the Benchmark Replacement Date:
(1) the
spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero),
that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;
(2) if
the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment; and
(3) the
spread adjustment (which may be a positive or negative value or zero) that has been selected by the Calculation Agent giving due consideration
to any industry-accepted spread adjustment or method for calculating or determining such spread adjustment, for the replacement of the
then-current Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated floating rate securities at such time.
“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative, or operational
changes (including, without limitation, changes to the definition of “Floating Rate Interest Period,” timing and frequency
of determining rates with respect to each Floating Rate Interest Period and making payments of interest, rounding of amounts or tenors,
and other administrative matters) that the Calculation Agent determines may be appropriate to reflect the adoption of such Benchmark
Replacement in a manner substantially consistent with market practice (or, if the Calculation Agent determines that adoption of any portion
of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for use of the
Benchmark Replacement exists, in such other manner as the Calculation Agent determines is reasonably necessary).
“Benchmark
Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:
(1) in
the case of clause (1) of the definition of “Benchmark Transition Event,” the relevant Reference Time in respect of any determination;
(2) in
the case of clause (2) or (3) of the definition of “Benchmark Transition Event,” the later of the date of the public statement
or publication of information referenced therein and the date on which the administrator of the Benchmark permanently or indefinitely
ceases to provide the Benchmark; or
(3) in
the case of clause (4) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein.
For
the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference
Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for
such determination.
“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:
(1) if
the Benchmark is Three-Month Term SOFR, the Company determines that the use of a forward-looking rate for a tenor of three months based
on SOFR is not administratively feasible;
(2) a
public statement or publication of information by or on behalf of the administrator of the Benchmark announcing that such administrator
has ceased or will cease to provide the Benchmark, permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide the Benchmark;
(3) a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark, the central bank
for the currency of the Benchmark, an insolvency official with jurisdiction over the administrator for the Benchmark, a resolution authority
with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over
the administrator for the Benchmark, which states that the administrator of the Benchmark has ceased or will cease to provide the Benchmark
permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will
continue to provide the Benchmark; or
(4) a
public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the
Benchmark is no longer representative.
“Business
Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
or trust companies in the City of New York, New York or any Place of Payment are authorized or obligated by law, regulation, or executive
order to close or remain closed.
“Calculation
Agent” means the Person appointed by the Company prior to the commencement of the Floating Rate Period (which may include the
Company or any of its affiliates) to act in accordance with Section 2.05. The Company shall initially act as the Calculation
Agent.
“Company”
shall have the meaning set forth in the Preamble unless and until a successor entity shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such successor entity.
“Compounded
SOFR” means the compounded average of SOFRs for the applicable Corresponding Tenor, with the rate, or methodology for this
rate, and conventions for this rate being established by the Calculation Agent in accordance with:
(1) the
rate, or methodology for this rate, and conventions for this rate selected or recommended by the Relevant Governmental Body for determining
Compounded SOFR; provided that:
(2) if,
and to the extent that, the Calculation Agent determines that Compounded SOFR cannot be determined in accordance with clause (1) above,
then the rate, or methodology for this rate, and conventions for this rate that have been selected by the Calculation Agent giving due
consideration to any industry-accepted market practice for Dollar-denominated floating rate securities at such time.
For
the avoidance of doubt, the calculation of Compounded SOFR shall exclude the Benchmark Replacement Adjustment and the spread specified
in the definition thereof.
“Corresponding
Tenor” means (i) with respect to Term SOFR, three months, and (ii) with respect to a Benchmark Replacement, a tenor (including
overnight) having approximately the same length (disregarding business day adjustment) as the applicable tenor for the then-current Benchmark.
“DTC”
shall have the meaning set forth in Section 2.03 hereof.
“Federal
Reserve Board” means the Board of Governors of the Federal Reserve System or any successor regulatory authority with jurisdiction
over bank holding companies.
“Fixed
Period Interest Payment Date” shall have the meaning set forth in Section 2.05(a) hereof.
“Fixed
Rate Period” shall have the meaning set forth in Section 2.05(a) hereof.
“Floating
Period Interest Payment Date” shall have the meaning set forth in Section 2.05(b) hereof.
“Floating
Rate Interest Period” means the period from and including the immediately preceding Floating Period Interest Payment Date in
respect of which interest has been paid or duly provided for, to, but excluding, the applicable Floating Period Interest Payment Date
or Maturity Date or Redemption Date, if applicable (except that the first Floating Rate Interest Period will commence on September 1,
2027).
“Floating
Rate Period” shall have the meaning set forth in Section 2.05(b) hereof.
“FRBNY”
means the Federal Reserve Bank of New York.
“FRBNY’s
Website” means the website of the FRBNY at http://www.newyorkfed.org, or any successor source.
“Global
Note” shall have the meaning set forth in Section 2.04 hereof.
“Indenture”
shall have the meaning set forth in the Recitals.
“Independent
Bank Regulatory Counsel” means a law firm, a member of a law firm or an independent practitioner that is experienced in matters
of federal bank holding company and banking regulatory law, including the laws, rules and guidelines of the Federal Reserve Board relating
to regulatory capital, and shall include any Person who, under the standards of professional conduct then prevailing and applicable to
such counsel, would not have a conflict of interest in representing the Company or the Trustee in connection with providing the legal
opinion contemplated by the definition of the term “Tier 2 Capital Event.”
“Independent
Tax Counsel” means a law firm, a member of a law firm or an independent practitioner that is experienced in matters of federal
income taxation law, including the deductibility of interest payments made with respect to corporate debt instruments, and shall include
any Person who, under the standards of professional conduct then prevailing and applicable to such counsel, would not have a conflict
of interest in representing the Company or the Trustee in connection with providing the legal opinion contemplated by the definition
of the term “Tax Event.”
“Interest
Payment Date” shall have the meaning set forth in Section 2.05(b) hereof.
“Interpolated
Benchmark” with respect to the Benchmark means the rate determined by the Calculation Agent for the Corresponding Tenor by
interpolating on a linear basis between: (1) the Benchmark for the longest period (for which the Benchmark is available) that is shorter
than the Corresponding Tenor, and (2) the Benchmark for the shortest period (for which the Benchmark is available) that is longer than
the Corresponding Tenor.
“ISDA”
means the International Swaps and Derivatives Association, Inc. or any successor.
“ISDA
Definitions” means the 2006 ISDA Definitions published by ISDA, as amended or supplemented from time to time, or
any successor definitional booklet for interest rate derivatives published from time to time.
“ISDA
Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives
transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark
for the applicable tenor.
“ISDA
Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective
upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback
Adjustment.
“Maturity
Date” shall have the meaning set forth in Section 2.02 hereof.
“Notes”
shall have the meaning set forth in the Recitals.
“Optional
Redemption” shall have the meaning set forth in Section 3.01 hereof.
“Paying
Agent” means any Person authorized by the Company, including the Company or an affiliate, to pay the principal of, or any premium
or interest on, the Notes on behalf of the Company.
“Redemption
Date” means each date, if any, on which Notes are redeemed pursuant to the redemption provisions of Section 3.01 or Section
3.02 hereof.
“Reference
Time” with respect to any determination of the Benchmark means (i) if the Benchmark is Three-Month Term SOFR, the time determined
by the Calculation Agent after giving effect to the Three-Month Term SOFR Conventions, and (ii) if the Benchmark is not Three-Month Term
SOFR, the time determined by the Calculation Agent after giving effect to the Benchmark Replacement Conforming Changes.
“Relevant
Governmental Body” means the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the
Federal Reserve Board and/or the FRBNY or any successor thereto.
“Second
Supplemental Indenture” shall have the meaning set forth in the Preamble.
“Securities”
shall have the meaning set forth in the Recitals.
“Senior
Indebtedness” means the principal of, and premium, if any, and interest, including interest accruing after the commencement
of any bankruptcy proceeding relating to the Company, on, or substantially similar payments the Company makes in respect of the following
categories of debt, whether that debt is outstanding on the date of execution of this Second Supplemental Indenture or thereafter incurred, created or
assumed:
(1) indebtedness
evidenced by notes, debentures, or bonds or other securities issued under the provisions of any indenture, fiscal agency agreement, debenture
or note purchase agreement or other agreement, including any senior debt securities that may be offered, including by means of a base
prospectus and one or more prospectus supplements;
(2) indebtedness
for money borrowed or represented by purchase-money obligations, as defined below;
(3) indebtedness
to general creditors;
(4) obligations
as lessee under leases of property whether made as part of a sale and leaseback transaction to which the Company is a party or otherwise;
(5) indebtedness, obligations and
liabilities of others in respect of which the Company is liable contingently or otherwise to pay or advance money or property or as guarantor,
endorser or otherwise or which the Company has agreed to purchase or otherwise acquire and indebtedness of partnerships and joint ventures
that is included in the Company’s consolidated financial statements;
(6) reimbursement
and other obligations relating to letters of credit, bankers’ acceptances and similar obligations;
(7) obligations
under various hedging arrangements and agreements, including interest rate and currency hedging agreements and swap and nonswap forward
agreements;
(8) all
of the Company’s obligations issued or assumed as the deferred purchase price of property or services, but excluding trade accounts
payable and accrued liabilities arising in the ordinary course of business; and
(9) deferrals, renewals or
extensions of any of the indebtedness or obligations described in the clauses above.
However,
“Senior Indebtedness” excludes:
(1) any
indebtedness, obligation or liability referred to in the definition of Senior Indebtedness above as to which, in the instrument creating,
governing or evidencing that indebtedness, obligation or liability, it is expressly provided that such indebtedness, obligation or liability
is not senior in right of payment to, is junior in right of payment to, or ranks equally in right of payment with, other specified types
of indebtedness, obligations and liabilities of the Company, which other specified types of indebtedness, obligations and liabilities
of the Company include the Notes;
(2) any
indebtedness, obligation or liability that is subordinated to other of the Company’s indebtedness, obligations or liabilities
to substantially the same extent as or to a greater extent than the Notes are subordinated;
(3) all
obligations to trade creditors created or assumed by the Company in the ordinary course of business; and
(4) the
Notes and any other securities issued pursuant to the Indenture and the Company’s junior subordinated debentures outstanding on
the date of execution of this Second Supplemental Indenture and, unless expressly provided in the terms thereof, any of the Company’s
indebtedness to the Company’s subsidiaries.
As
used above, the term “purchase-money obligations” means indebtedness, obligations evidenced by a note, debenture, bond or
other instrument, whether or not secured by a lien or other security interest, issued to evidence the obligation to pay or a guarantee
of the payment of, and any deferred obligation for the payment of, the purchase price of property but excluding indebtedness or obligations
for which recourse is limited to the property purchased, issued or assumed as all or a part of the consideration for the acquisition
of property or services, whether by purchase, merger, consolidation or otherwise, but does not include any trade accounts payable.
Notwithstanding
the foregoing, if the Federal Reserve Board (or other competent regulatory agency or authority) promulgates any rule or issues any interpretation
that defines general creditor(s), the main purpose of which is to establish criteria for determining whether the subordinated debt of
a bank holding company is to be included in its capital, then the term “general creditors” as used in this definition of
“Senior Indebtedness” in this Second Supplemental Indenture will have the meaning as described in that rule or interpretation.
“SOFR”
means the secured overnight financing rate published by the FRBNY, as the administrator of the Benchmark (or any successor administrator),
on the FRBNY’s Website.
“Tax
Event” shall mean the receipt by the Company of an opinion of Independent Tax Counsel to the effect that:
(1) an
amendment to or change (including any announced prospective amendment or change) in any law, treaty, statute or code, or any regulation
thereunder, of the United States or any of its political subdivisions or taxing authorities;
(2) a
judicial decision, administrative action, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or
announcement, including any notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation
(any of the foregoing, an “administrative or judicial action”);
(3) an
amendment to or change in any official position with respect to, or any interpretation of, an administrative or judicial action or a
law or regulation of the United States that differs from the previously generally accepted position or interpretation; or
(4) a
threatened challenge asserted in writing in connection with an audit of the Company’s federal income tax returns or positions or
a similar audit of any of its Subsidiaries, or a publicly known threatened challenge asserted in writing against any other taxpayer that
has raised capital through the issuance of securities that are substantially similar to the Notes,
in
each case, occurring or becoming publicly known on or after the date of original issuance of the Notes, has resulted in more than an
insubstantial increase in the risk that the interest paid by the Company on the Notes is not, or within 90 days of receipt of such opinion
of Independent Tax Counsel, will not be, deductible by the Company, in whole or in part, for U.S. federal income tax purposes.
“Term
SOFR” means the forward-looking term rate for the applicable Corresponding Tenor based on SOFR published by Term SOFR Administrator.
“Term
SOFR Administrator” means any entity designated by the CME Group Benchmark Administrator Limited as administrator of forward-looking
term SOFR (or any successor administrator).
“Three-Month
Term SOFR” means the rate for Term SOFR for a tenor of three months that is published by the Term SOFR Administrator at the
Reference Time for any Floating Rate Interest Period, as determined by the Calculation Agent after giving effect to the Three-Month Term
SOFR Conventions. All percentages used in or resulting from any calculation of Three-Month Term SOFR shall be rounded, if necessary,
to the nearest one-hundred-thousandth of a percentage point, with 0.000005% rounded up to 0.00001%.
“Three-Month
Term SOFR Conventions” means any determination, decision, or election with respect to any technical, administrative, or
operational matter (including with respect to the manner and timing of the publication of Three-Month Term SOFR, or changes
to the definition of “Floating Rate Interest Period,” timing and frequency of determining Three-Month Term SOFR with
respect to each Floating Rate Interest Period and making payments of interest, rounding of amounts or tenors, and other
administrative matters) that the Calculation Agent determines may be appropriate to reflect the use of Three-Month Term SOFR as the
Benchmark in a manner substantially consistent with market practice (or, if the Calculation Agent determines that adoption of any
portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for
the use of Three-Month Term SOFR exists, in such other manner as the Calculation Agent determines is reasonably necessary).
“Tier
2 Capital Event” shall mean the receipt by the Company of an opinion of Independent Bank Regulatory Counsel to the effect that,
as a result of (a) any amendment to, or change (including any announced prospective change) in, the laws or any regulations thereunder
of the United States or any rules, guidelines or policies of an applicable regulatory authority for the Company or (b) any official administrative
pronouncement or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which
pronouncement or decision is announced on or after the date of original issuance of the Notes, the Notes do not constitute, or within
90 days of the date of such opinion will not constitute, Tier 2 capital (or its then equivalent if the Company were subject to such capital
requirement) for purposes of capital adequacy guidelines of the Federal Reserve Board (or any successor regulatory authority with jurisdiction
over bank holding companies), as then in effect and applicable to the Company.
“Trustee”
shall have the meaning set forth in the Preamble.
“U.S.
Dollars” means such currency of the United States as at the time of payment shall be legal tender for the payment of public
and private debts.
“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
ARTICLE
2
ESTABLISHMENT OF THE 2032 SERIES
AND GENERAL TERMS AND CONDITIONS OF THE NOTES
Section
2.01. Establishment of the Series of the Notes and Designation.
(a) There
is hereby authorized and established a Series of Securities designated as the “6.000% Fixed-to-Floating Rate Subordinated
Notes Due 2032,” which Series of Securities is unsecured, subordinated to the Senior Indebtedness of the Company as provided herein
and unlimited in the aggregate principal amount that may be issued. The Notes initially issued pursuant to the terms of the Indenture
shall be in an aggregate principal amount of $65,000,000, which amount shall be set forth in a Company Order pursuant to Article 2 of
the Base Indenture, and the Trustee shall thereupon authenticate and deliver said Notes in accordance with such Company Order and the
Indenture, including Section 2.06 of the Base Indenture. The Securities that are a part of such Series of Securities shall be in the
form and have the terms, provisions and conditions as set forth in the Base Indenture, this Second Supplemental Indenture and
the Notes in the form attached hereto as Exhibit A.
(b) The
Company may, from time to time, without notice to, or the consent of, the holders of the Notes, issue additional Securities ranking equally
with the Notes and identical to the Notes issued on the date hereof in all respects (except for the issue date, the offering price, the
payment of interest accruing prior to the issue date of such additional Securities and the first payment of interest following the issue
date of such additional Securities) in order that such additional Securities may be consolidated and form a single series with the Notes
and have the same terms as to status, redemption or otherwise as the Notes. However, any additional Securities of the series of which
the Notes are a part that are issued and are not fungible with the outstanding Notes of such series for United States federal income
tax purposes will be issued under one or more separate CUSIP numbers and ISIN numbers. No limit exists on the aggregate principal amount
of the additional Securities of this series that the Company may issue in the future.
Section
2.02. Maturity. The date upon which the Notes shall become due and payable at final maturity, together with any accrued and
unpaid interest then owing, is September 1, 2032 (the “Maturity Date”).
Section
2.03. Form, Payment and Appointment. Except as provided in Section 2.07(d) of the Base Indenture, the Notes will be issued
only in book-entry form, will be represented by one or more Global Notes (as defined below) registered in the name of or held by The Depository
Trust Company (and any successor organization thereto) (“DTC”) or its nominee. Principal or the redemption price, if
any, of a Note shall be payable to the Person in whose name that Note is registered on the Maturity Date or Redemption Date, as the case
may be, provided that the redemption price, if any, principal of and interest on the Notes represented by one or more Global Notes registered
in the name of or held by DTC or its nominee will be payable in immediately available funds to DTC or its nominee, as the case may be,
as the registered holder of such Global Notes. The principal of any certificated Notes will be payable at the Place of Payment set forth
below.
The
Notes shall have such other terms as are set forth in the form thereof attached hereto as Exhibit A, which is incorporated
herein and made a part hereof.
The
Security Registrar, Authenticating Agent, and Paying Agent for the Notes shall initially be the Trustee. The Company will appoint a Person
to act as the Calculation Agent as provided under the definition of Calculation Agent and Section 2.05.
The
Place of Payment for the Notes shall be an office or agency of the Company maintained for such purpose, which shall initially be the Corporate
Trust Office of the Trustee.
The
Notes will be issued and may be transferred only in minimum denominations of $1,000 or any amount in excess thereof that is an integral
multiple of $1,000. The Company will pay principal of and interest on the Notes in U.S. Dollars.
Section
2.04. Global Note. The Notes shall be issued initially in the form of one or more fully registered global notes (each such
global note, a “Global Note”) registered in the name of DTC or its nominee and deposited with DTC or its designated
custodian or such other Depositary as any Authorized Officer of the Company may from time to time designate. Unless and until a Global
Note is exchanged for definitive certificated Notes, such Global Note may be transferred, in whole but not in part, and any payments on
the Notes shall be made, only to DTC or a nominee of DTC, or to a successor Depositary selected or approved by the Company or to a nominee
of such successor Depositary as provided in the Indenture.
Section
2.05. Interest.
(a) From
and including August 24, 2022, to, but excluding, September 1, 2027 (unless redeemed prior to such date pursuant to Section 3.02 hereof)
(the “Fixed Rate Period”), the Notes will bear interest at a rate of 6.000% per year. During the Fixed Rate Period,
interest on the Notes will accrue from and including August 24, 2022, and will be payable semiannually in arrears on March 1 and September
1 of each year during the Fixed Rate Period, commencing on March 1, 2023 (each such date, a “Fixed Period Interest Payment Date”).
The interest payable on the Notes on any Fixed Period Interest Payment Date will be paid to the holder by the close of business on the
15th calendar day (whether or not a Business Day) immediately preceding the Fixed Period Interest Payment Date.
(b) From
and including September 1, 2027, to, but excluding, the Maturity Date (unless redeemed prior to such date pursuant to Section
3.01 or Section 3.02 hereof) (the “Floating Rate Period”), the Notes will bear interest at
a floating rate per year equal to the Benchmark. During the Floating Rate Period, interest on the Notes will accrue from and including
September 1, 2027 and will be payable quarterly in arrears on March 1, June 1, September 1 and December 1 of each year, commencing on
December 1, 2027 (each such date, a “Floating Period Interest Payment Date” and, together with a Fixed Period Interest
Payment Date, an “Interest Payment Date”). The interest payable on the Notes on any Floating Period Interest Payment
Date will, except as noted in the immediately succeeding sentence, be paid to the holder by the close of business on the 15th calendar
day (whether or not a Business Day) immediately preceding the Floating Period Interest Payment Date. However, interest that the Company
pays on the Maturity Date will be paid to the Person to whom the principal will be payable. Notwithstanding the foregoing, if the Benchmark
is less than zero, then the Benchmark shall be deemed to be zero. The Calculation Agent will provide the Company and the Trustee with
written notice of the interest rate in effect on the Notes promptly after the Reference Time (or such other date of determination for
the applicable Benchmark) for each Floating Rate Interest Period.
(c) During
the Fixed Rate Period, interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. During the Floating
Rate Period, interest will be computed on the basis of a 360-day year and the actual number of days elapsed. Dollar amounts resulting
from those calculations will be rounded to the nearest cent, with one-half cent being rounded upward.
(d) If
any Fixed Period Interest Payment Date for the Notes falls on a day that is not a Business Day, the Company will postpone the interest
or principal payment to the next succeeding Business Day, but the payments made on such dates will be treated as being made on the date
that the payment was first due and the holders of the Notes will not be entitled to any further interest, principal or other payments
with respect to such postponements. If any Floating Period Interest Payment Date or the Maturity Date falls on a day that is not a Business
Day, the Company will postpone the interest payment or the payment of principal and interest at the Maturity Date to the next succeeding
Business Day (and, with respect to the Maturity Date, no additional interest will accrue on the amount payable for the period from and
after the Maturity Date) unless, with respect to a Floating Period Interest Payment Date only, such day falls in the next calendar month,
in which case the Floating Period Interest Payment Date will instead be the immediately preceding day that is a Business Day, and interest
will accrue to, but excluding, such Floating Period Interest Payment Date as so adjusted.
(e) The
Company shall appoint a Calculation Agent prior to the commencement of the Floating Rate Period. The Company will act as the initial Calculation
Agent. Absent manifest error, the Calculation Agent’s determination of the interest rate for any Floating Rate Interest Period will
be binding and conclusive upon the holders of the Notes (including, for the avoidance of doubt, each beneficial owner), the Company (if
the Company is not also the Calculation Agent) and the Trustee. The Trustee shall have no duty to confirm or verify any such calculation.
By its acquisition of the Notes, each holder (including, for the avoidance of doubt, each beneficial owner) acknowledges, accepts, consents
to and agrees to be bound by the Calculation Agent’s determination of the interest rate for each Floating Rate Interest Period,
including the Calculation Agent’s determination of any Benchmark Replacement Conforming Changes, Benchmark Replacement Date, Benchmark
Replacement, Benchmark Replacement Adjustment, and Benchmark Transition Event, including as may occur without any prior notice from the
Company or the Calculation Agent and without the need for the Company or the Calculation Agent to obtain any further consent from any
holder of the Notes. The Calculation Agent’s determination of any interest rate, and its calculation of interest payments, for any
Floating Rate Interest Period, will be maintained on file at the Calculation Agent’s principal offices, and will be made available
by the Company to any holder of the Notes upon request.
(f) The
Calculation Agent shall have all the rights, protections and indemnities afforded to the Trustee under the Indenture. The Company may
remove the Calculation Agent at any time. If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by
the Company, the Company shall promptly appoint a replacement Calculation Agent. The Trustee shall not be under any duty to succeed to,
assume or otherwise perform, any duties of the Calculation Agent, or to appoint a successor or replacement in the event of the Calculation
Agent’s resignation or removal or to replace the Calculation Agent in the event of a default, breach or failure of performance
on the part of the Calculation Agent with respect to the Calculation Agent’s duties and obligations under the Indenture. For the
avoidance of doubt, if at any time there is no Calculation Agent appointed by the Company, then the Company shall be the Calculation Agent.
(g) Effect
of Benchmark Transition Event.
(1) If the Calculation
Agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred on or prior to the Reference
Time in respect of any Floating Rate Interest Period during the Floating Rate Period, then the Benchmark Replacement will replace the
then-current Benchmark for all purposes relating to the Notes during such Floating Rate Interest Period and all remaining Floating Rate
Interest Periods. In connection with the implementation of a Benchmark Replacement, the Calculation Agent will have the right to make
Benchmark Replacement Conforming Changes from time to time. (2) Notwithstanding
anything set forth in Section 2.05(b) above, if the Calculation Agent determines on or prior to the relevant Reference
Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR,
then the provisions set forth in this Section 2.05(g) will thereafter apply to all determinations of the Benchmark used
to calculate the interest rate on the Notes for each Floating Rate Interest Period.
(3) The Company and
the Calculation Agent are expressly authorized to make certain determinations, decisions, and elections under the terms of the Notes,
including with respect to the use of Three-Month Term SOFR as the Benchmark for the Floating Rate Period and under this Section
2.05(g). Any determination, decision, or election that may be made by the Company or by the Calculation Agent under the terms of the
Notes, including any determination with respect to a tenor, rate, or adjustment or of the occurrence or non-occurrence of an event, circumstance,
or date and any decision to take or refrain from taking any action or any selection (A) will be conclusive and binding on the holders
of the Notes, the Company (if the Company is not also making the decision) and the Trustee absent manifest error, (B) if made by the Company
as Calculation Agent, will be made in the Company’s sole discretion, (C) if made by a Calculation Agent other than the Company,
will be made after consultation with the Company, and the Calculation Agent will not make any such determination, decision, or election
to which the Company reasonably objects and (D) notwithstanding anything to the contrary in the Indenture or the Notes, shall become effective
without consent from the holders of the Notes or the Trustee or any other party. If the Calculation Agent fails to make any determination,
decision, or election that it is required to make under the terms of the Notes, then the Company will make such determination, decision,
or election on the same basis as described above. In connection with such determination, decision, or election, the Company shall be treated
as the Calculation Agent for all purposes hereunder.
(4) The Company (or
the Calculation Agent) shall notify the Trustee in writing (i) upon the occurrence of the Benchmark Transition Event or the Benchmark
Replacement Date, and (ii) of any Benchmark Replacements, Benchmark Replacement Conforming Changes after a Benchmark Transition Event.
(5) The Trustee (including
in its capacity as Paying Agent) shall have no (i) responsibility or liability for the (A) Three-Month Term SOFR Conventions, (B) selection
of an alternative reference rate to Three-Month Term SOFR (including, without limitation, whether the conditions for the designation of
such rate have been satisfied or whether such rate is a Benchmark Replacement or an Unadjusted Benchmark Replacement), (C) determination
or calculation of a Benchmark Replacement, or (D) determination of whether a Benchmark Transition Event or Benchmark Replacement Date
has occurred, and in each such case under clauses (A) through (D) above shall be entitled to conclusively rely upon the selection, determination,
and/or calculation thereof as provided by the Company or its Calculation Agent, as applicable, and (ii) liability for any failure or delay
in performing its duties hereunder as a result of the unavailability of a Benchmark rate as described in the definition thereof, including,
without limitation, as a result of the Company’s or the Calculation Agent’s failure to select a Benchmark Replacement or the
Calculation Agent’s failure to calculate a Benchmark. The Trustee shall be entitled to rely conclusively on all notices from the
Company or the Calculation Agent regarding any Benchmark or Benchmark Replacement, including, without limitation, in regards to Three-Month
Term SOFR Conventions, a Benchmark Transition Event, Benchmark Replacement Date, and Benchmark Replacement Conforming Changes. Under no
circumstances will the Trustee be responsible for selecting or determining a Benchmark Replacement if Three-Month Term SOFR or any other
Benchmark will no longer be available past a designated date. In the case of a Benchmark Transition Event, the Calculation Agent will
select the Benchmark Replacement prior to the Benchmark Replacement Date, ensuring that the Trustee will be able to meet its obligations
and requirements under this Indenture with respect to the Benchmark Replacement. No such replacement (including any Benchmark Replacement
Conforming Changes) to the Indenture shall impact the Trustee’s own rights, duties or immunities under the Indenture or otherwise.
The Trustee shall not be responsible or liable for the actions or omissions of the Calculation Agent, or any failure or delay in the performance
of the Calculation Agent’s duties or obligations, nor shall it be under any obligation to monitor or oversee the performance of
the Calculation Agent. The Trustee shall be entitled to rely conclusively on any determination made, and any instruction, notice, Officer’s
Certificate or other instruction or information provided by the Calculation Agent without independent verification, investigation or
inquiry of any kind.
(6) If the then-current
Benchmark is Three-Month Term SOFR, the Calculation Agent will have the right to establish the Three-Month Term SOFR Conventions, and
if any of the foregoing provisions concerning the calculation of the interest rate and interest payments during the Floating Rate Period
are inconsistent with any of the Three-Month Term SOFR Conventions determined by the Calculation Agent, then the relevant Three-Month
Term SOFR Conventions will apply. Furthermore, if the Calculation Agent determines that a Benchmark Transition Event and its related Benchmark
Replacement Date have occurred with respect to the Three-Month Term SOFR at any time when any of the Notes are outstanding, then the foregoing
provisions concerning the calculation of the interest rate and interest payments during the Floating Rate Period will be modified in accordance
with this Section 2.05(g).
Section
2.06. Subordination.
(a) The
Company, for itself, its successors and assigns, covenants and agrees, and each holder of Notes by the holder’s acceptance thereof,
likewise covenants and agrees, that the payment of the principal of and interest on each and all of the Notes is and will be expressly
subordinated in right of payment to the prior payment in full of all Senior Indebtedness, subject to clause (j) of this Section
2.06, to the extent and in the manner described in this Section 2.06 and Section 16.01 of the Base Indenture.
(b) In
the event of the insolvency, bankruptcy, receivership, liquidation or other marshalling of the assets and liabilities of the Company (subject
to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights conferred upon the Senior Indebtedness
and the holders thereof with respect to the Notes and the holders thereof by a lawful plan of reorganization under applicable bankruptcy
law):
(i) the
holders of all Senior Indebtedness shall first be entitled to receive payment in full in accordance with the terms of such Senior Indebtedness
of the principal thereof and premium, if any, and interest due thereon (including interest accruing subsequent to the commencement of
any proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy, insolvency or similar law now or hereafter
in effect) before the holders of the Notes are entitled to receive any payment upon the principal of or interest on indebtedness evidenced
by the Notes;
(ii) any
payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the holders
of the Notes would be entitled except for the provisions of Section 16.01 of the Base Indenture and this Section 2.06, including
any such payment or distribution that may be payable or deliverable by reason of the payment of any other indebtedness of the Company
being subordinated to the payment of the Notes, shall be paid by the liquidating trustee or agent or other Person making such payment
or distribution, whether a bankruptcy trustee, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness
or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any
of such Senior Indebtedness may have been issued, in accordance with the priorities then existing among holders of Senior Indebtedness
for payment of the aggregate amounts remaining unpaid on account of the principal of and premium, if any, and interest (including interest
accruing subsequent to the commencement of any proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy,
insolvency or similar law now or hereafter in effect) on the Senior Indebtedness held or represented by each, to the extent necessary
to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any other concurrent payment or distribution
to the holders of such Senior Indebtedness; it being understood that if the holders of the Notes shall fail to file a proper claim in
the form required by any proceeding referred to in this subparagraph (ii) prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of Senior Indebtedness are hereby authorized to file an appropriate claim or claims
for and on behalf of the holders of the Notes, in the form required in any such proceeding; and
(iii) in
the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether
in cash, property or securities, including any such payment or distribution that may be payable or deliverable by reason of the payment
of any other indebtedness of the Company being subordinate to the payment of the Notes shall be received by the Trustee or holders of
the Notes before all Senior Indebtedness is paid in full, such payment or distribution shall be paid over to the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee, agent or other Person making payment of assets of the Company for all Senior Indebtedness
remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution
to the holders of such Senior Indebtedness.
Subject
to the payment in full of all Senior Indebtedness, the holders of the Notes shall be subrogated to the rights of the holders of
Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to the Senior
Indebtedness until the principal of and interest on the Notes shall be paid in full and no such payments or distributions to holders
of such Senior Indebtedness to which the holders of the Notes would be entitled except for the provisions of Section 16.01 of the
Base Indenture and this Section 2.06, of cash, property or securities otherwise distributable to the holders of
Senior Indebtedness shall, as between the Company, its creditors, other than the holders of Senior Indebtedness, and the holders of
the Notes, be deemed to be a payment by the Company to or on account of the Senior Indebtedness. It is understood that the
provisions of this Section 2.06 are intended solely for the purpose of defining the relative rights of the holders
of the Notes, on the one hand, and the holders of Senior Indebtedness, on the other hand. Upon any payment or distribution of assets
of the Company referred to in this Section 2.06, the Trustee and the holders of the Notes shall be entitled to rely upon
any order or decree of a court of competent jurisdiction in which such proceeding for the insolvency, bankruptcy, receivership,
liquidation or other marshalling of the assets and liabilities of the Company is pending or upon a certificate of the liquidating
trustee or agent or other Person making any distribution to the Trustee or to the holders of the Notes for the purpose of
ascertaining the Persons entitled to participate in such distribution, the holders of the Senior Indebtedness and other indebtedness
of the Company, the amount hereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Section 2.06. In the absence of any such liquidating trustee, agent or other Person, the
Trustee shall be entitled to rely upon a written notice by a Person representing itself to be a holder of Senior Indebtedness (or a
trustee or representative on behalf of such holder) as evidence that such Person is a holder of Senior Indebtedness (or is such a
trustee or representative). With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only
such of its covenants and obligations as are specifically set forth in this Section 2.06, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read into this Section 2.06 against the
Trustee. The Trustee, however, shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness by reason of the
execution of the Base Indenture, this Second Supplemental Indenture, or any other supplemental indenture entered into pursuant to
Section 2.01 or Article 10 of the Base Indenture, and shall not be liable to any such holders if it shall mistakenly pay over or
distribute to or on behalf of holders of the Notes or the Company moneys or assets to which any holders of Senior Indebtedness shall
be entitled by virtue of this Section 2.06.
(c) In
the event and during the continuation of any default in the payment of principal of, or premium, if any, or interest on, any Senior Indebtedness,
beyond any applicable grace period, or if any event of default with respect to any Senior Indebtedness shall have occurred and be continuing,
or would occur as a result of the payment referred to hereinafter, permitting the holders of such Senior Indebtedness (or a trustee on
behalf of the holders thereof) to accelerate the maturity thereof, then, unless and until such default or event of default shall have
been cured or waived or shall have ceased to exist, no payment or principal of or interest on the Notes, shall be made by the Company.
(d) Nothing
contained in the Base Indenture, this Second Supplemental Indenture, any other supplemental indenture entered into pursuant to Section
2.01 or Article 10 of the Base Indenture, or in any of the Notes shall: (i) impair, as between the Company, its creditors, other than
the holders of Senior Indebtedness, and holders of the Notes, the obligations of the Company, which are unconditional and absolute, to
make, or prevent the Company from making, at any time except as provided in clauses (b), (c), or (j) of
this Section 2.06, payments of principal of, or interest (including interest accruing subsequent to the commencement of any
proceeding for the bankruptcy or reorganization of the Company under any applicable bankruptcy, insolvency, or similar law now or hereafter
in effect) on, the Notes, as and when the same shall become due and payable in accordance with the terms of the Notes; (ii) affect the
relative rights of the Holders of the Notes and creditors of the Company other than the holders of the Senior Indebtedness; (iii) except
as otherwise expressly provided in the Base Indenture, this Second Supplemental Indenture and the Notes with respect to the limitation
on the rights of the Trustee and the holders of Notes, to accelerate the maturity of the Notes and pursue remedies upon such an acceleration,
prevent the holder of any Notes or the Trustee from exercising all remedies otherwise permitted by applicable law upon default thereunder,
subject to the rights, if any, under this Section 2.06 of the holders of Senior Indebtedness in respect of cash, property
or securities of the Company received upon the exercise of such remedy; or (iv) prevent the application by the Trustee or any Paying Agent
of any moneys deposited with it hereunder to the payment of or on account of the principal of, or interest on, the Notes or prevent the
receipt by the Trustee or any Paying Agent of such moneys, if, prior to the third Business Day prior to such deposit, the Trustee or such
Paying Agent did not have written notice of any event prohibiting the making of such deposit by the Company.
(e) Each
holder by his acceptance of any Notes authorizes and expressly directs the Trustee on such holder’s behalf to take such action as
may be necessary or appropriate to effectuate the subordination provided in the Indenture, and appoints the Trustee such holder’s
attorney-in-fact for such purposes, including, in the event of any termination, winding up, liquidation or reorganization of the Company
(whether in bankruptcy, insolvency, receivership, reorganization or similar proceedings or upon an assignment for the benefit of creditors
by the Company, a marshalling of the assets and liabilities of the Company) tending toward the liquidation of the property and assets
of the Company, the filing of a claim for the unpaid balance of the Notes in the form required in those proceedings.
The
Company shall give prompt written notice to the Trustee of any fact known to the Company that would prohibit the Company from making any
payment to or by the Trustee in respect of the Notes pursuant to the provisions of this Section 2.06 or Article 16 of
the Base Indenture. The Trustee shall not be charged with the knowledge of the existence of any default or event of default with respect
to any Senior Indebtedness or of any other facts that would prohibit the making of any payment to or by the Trustee unless and until the
Trustee shall have received notice in writing at its Corporate Trust Office to that effect signed by an Officer of the Company, or by
a holder of Senior Indebtedness or a trustee or agent thereof; and prior to the receipt of any such written notice, the Trustee shall,
subject to Article 7 of the Base Indenture, be entitled to assume that no such facts exist; provided that, if the Trustee shall not have
received the notice provided for in this Section 2.06 at least two Business Days prior to the date upon which, by the
terms of the Indenture, any monies shall become payable for any purpose (including, without limitation, the payment of the principal of
or interest on any Note), then, notwithstanding anything herein to the contrary, the Trustee shall have full power and authority to receive
any monies from the Company and to apply the same to the purpose for which they were received, and shall not be affected by
any notice to the contrary that may be received by it on or after such prior date except for an acceleration of the Notes prior to such
application. The foregoing shall not apply if the Paying Agent is the Company. The Trustee shall be entitled to rely on the delivery to
it of a written notice by a Person representing himself or itself to be a holder of any Senior Indebtedness (or a trustee on behalf of,
or agent of, such holder) to establish that such notice has been given by a holder of such Senior Indebtedness or a trustee or agent on
behalf of any such holder. In the event that the Trustee determines in good faith that any evidence is required with respect to the right
of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Section 2.06 or
Article 16 of the Base Indenture, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment
or distribution and any other facts pertinent to the rights of such Person under this Section 2.06 or Article 16 of the
Base Indenture and, if such evidence is not furnished to the Trustee, the Trustee may defer any payment to such Person pending such evidence
being furnished to the Trustee or a judicial determination that such Person has the right to receive such payment.
(f) Notwithstanding
the provisions of this Section 2.06 or any other provisions of the Indenture, neither the Trustee nor any Paying Agent shall be charged
with knowledge of the existence of any Senior Indebtedness or of any event that would prohibit the making of any payment or moneys to
or by the Trustee or such Paying Agent, unless and until a Responsible Officer of the Trustee or such Paying Agent shall have received
written notice thereof from the Company or from the holder of any Senior Indebtedness or from the representative of any such holder.
(g) The
Trustee shall be entitled to all of the rights set forth in this Section 2.06 in respect of any Senior Indebtedness at
any time held by it in its individual capacity to the extent set forth in Section 7.04 of the Base Indenture.
(h) The
failure to make a payment pursuant to the Notes by reason of any provision in this Section 2.06 shall not be construed
as preventing the occurrence of a default or any Event of Default.
(i) Nothing
contained in this Section 2.06 shall apply to the claims of, or payments to, the Trustee under or pursuant to Section
7.06 of the Base Indenture.
(j) The
subordination provisions in this Section 2.06 or Article 16 of the Base Indenture do not apply to amounts due to the
Trustee in its capacity as such pursuant to other sections of the Indenture, including Section 7.06 of the Base Indenture.
Section
2.07. Events of Default; Acceleration. All of the Events of Default set forth in clauses (a), (b), (c), (d) and (e) of Section
6.01 of the Base Indenture will apply with respect to the Notes. Notwithstanding the foregoing, because the Company will treat
the Notes as Tier 2 capital (or its then equivalent if the Company were subject to such capital requirement) for purposes of capital adequacy
guidelines of the Federal Reserve Board as then in effect and applicable to the Company, upon the occurrence of an Event of Default other
than an Event of Default set forth in clause (d) or (e) of Section 6.01 of the Base Indenture, neither the Trustee nor the holders of
the Notes may accelerate the maturity of the Notes and make the principal of, and any accrued and unpaid interest on, the Notes, immediately
due and payable. Solely with respect to the Notes, and not for the purposes of any other Securities, clause (d) and (e) of Section 6.01
of the Base Indenture shall be replaced in their entirety with the following:
“(d)
a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Company in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator (or similar official) of the Company or for any substantial part of the property of the Company, or ordering
the winding-up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of 60 consecutive
days; or
(e)
the Company shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
or shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of
or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of the Company or for
any substantial part of the property of the Company, or shall make any general assignment for the benefit of creditors; or”.
Section
2.08. No Sinking Fund. The Notes are not entitled to the benefit of any sinking fund.
Section
2.09. No Conversion or Exchange Rights. The Notes shall not be convertible into or exchangeable for any equity securities,
other securities or other assets of the Company or any Subsidiary of the Company.
Section
2.10. Defeasance and Covenant Defeasance. Article XIV of the Base Indenture shall apply to the Notes.
ARTICLE 3
REDEMPTION OF THE NOTES
Section
3.01. Optional Redemption. The Notes shall not be redeemable prior to September 1, 2027, except as provided in Section
3.02. The Company may redeem the Notes, at its sole option, beginning with the Interest Payment Date of September 1, 2027 and on any
Interest Payment Date thereafter, in whole or in part, from time to time, at a redemption price equal to 100% of the principal amount
of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption Date, and any such redemption may be subject
to the satisfaction of one or more conditions precedent set forth in the applicable notice of redemption (an “Optional Redemption”).
No such Optional Redemption of the Notes by the Company prior to the Maturity Date shall be made without the prior approval of the Federal
Reserve Board, to the extent that such approval is then required under the rules of the Federal Reserve Board. The Notes are not subject
to repayment at the option of the holders of Notes.
Section
3.02. Redemption of Special Events. Other than in the case of an Optional Redemption, the Notes may not be redeemed by the
Company prior to the Maturity Date, except the Company may, at its sole option, redeem the Notes at any time before the Maturity Date
in whole, but not in part, upon or after the occurrence of a Tax Event, a Tier 2 Capital Event or if the Company is required to register
as an investment company pursuant to the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), as amended. Any such redemption of
the Notes will be at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest
to, but excluding, the Redemption Date, and any such redemption may be subject to the satisfaction of one or more conditions precedent
set forth in the applicable notice of redemption. Notwithstanding the foregoing, installments of interest on any Notes that are due and
payable on Interest Payment Dates falling on or prior to the applicable Redemption Date will be payable on such Interest Payment Dates
to the holders of the Notes at the close of business on the relevant record dates specified in Sections 2.05(a) and (b) above
in accordance with the Notes and this Indenture. No such redemption of the Notes by the Company prior to the Maturity Date shall be made
without the prior approval of the Federal Reserve Board, to the extent that such approval is then required under the rules of the Federal
Reserve Board.
Section
3.03. Notice to Trustee. If the Company elects to redeem the Notes pursuant to the redemption provisions of Section
3.01 or Section 3.02, at least 15 days prior to the Redemption Date (unless a shorter notice shall be agreed to in
writing by the Trustee) but not more than 60 days before the Redemption Date, the Company shall furnish to the Trustee an Officer’s
Certificate setting forth (i) the applicable section of this Indenture pursuant to which the redemption shall occur, (ii) the Redemption
Date, (iii) the principal amount of Notes to be redeemed, (iv) the redemption price and (v) a Board Resolution.
Section
3.04. Partial Redemption. In the case of a redemption pursuant to Section 3.01, if less than all of the Notes
are to be redeemed, the Notes to be redeemed will be selected in accordance with the rules of DTC (or, in the case of any certificated
Notes, by lot, on a pro rata basis or in such other manner the Trustee deems fair and appropriate unless otherwise required by law). The
Trustee shall promptly notify in writing the Company of the Notes selected for redemption and, in the case of any Notes selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of Notes selected shall be in minimum amounts of $1,000 or
integral multiples of $1,000 in excess thereof; no Notes of a principal amount of $1,000 or less shall be redeemed in part, except that
if all of the Notes of a holder are to be redeemed, the entire outstanding amount of Notes held by such holder, even if not equal to $1,000
or an integral multiple of $1,000 in excess thereof, shall be redeemed. Except as provided in the preceding sentence, provisions of this
Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption.
Section
3.05. Notice to Holders. In the case of any redemption, at least 15 days but no more than 60 days before the Redemption Date,
the Company shall send in accordance with the applicable procedures of the Depositary, or if the Notes are not then global Securities
the Company shall mail, or cause to be mailed, a notice of redemption by first-class mail to each holder of Notes to be redeemed at such
holder’s registered address appearing on the register (with a copy to the Trustee). The notice shall identify the Notes to be redeemed
(including the CUSIP and/or ISIN numbers thereof, if any) and shall state:
(a) the
Redemption Date;
(b) the
principal amount of the Notes that are being redeemed;
(c) each
Place of Payment;
(d) the
redemption price and accrued interest to the Redemption Date that is payable pursuant to Section 3.02 of the Base Indenture;
(e) if
fewer than all outstanding Notes are to be redeemed, the portion of the principal amount of such Notes to be redeemed and that, after
the Redemption Date and upon surrender of such Notes, if applicable, a new Note or Notes in principal amount equal to the unredeemed portion
will be issued;
(f) the
name and address of the Paying Agent;
(g) that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price;
(h) that
unless the Company defaults in making the redemption payment, interest on Notes called for redemption ceases to accrue on and after the
Redemption Date;
(i) if
such notice is conditioned upon the satisfaction of one or more conditions precedent, such conditions precedent;
(j) the
applicable section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and
(k) that
no representation is made as to the correctness or accuracy of the CUSIP and/or ISIN numbers, if any, listed in such notice or printed
on the Notes.
The
Company may state in the notice of redemption that another Person may make payment of the redemption price and perform its obligations
with respect to redemption or purchase.
At
the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense;
provided, that the Company shall have delivered to the Trustee, at least three Business Days prior to the requested date of delivery
(or such shorter period as is satisfactory to the Trustee), a Company Request requesting that the Trustee give such notice and
attaching a copy of such notice, which shall set forth the information to be stated in such notice as provided in
this Article 3. If any condition precedent to a redemption has not been satisfied, the Company will provide written
notice to the Trustee not less than two Business Days prior to the Redemption Date that such condition precedent has not been
satisfied, that the notice of redemption is rescinded or delayed and that the redemption subject to the satisfaction of such
condition precedent shall not occur or shall be delayed (or that such condition precedent is waived and such redemption shall occur
or shall be delayed). The Trustee shall promptly send a copy of such notice to the holders of the Notes.
ARTICLE 4
FORM OF NOTES
Section
4.01. Form of Notes. The Notes and the Trustee’s certificate of authentication thereon are to be substantially in the
form attached as Exhibit A hereto, with such changes therein as the officer of the Company executing the Notes (by manual,
electronic (e.g., “.pdf” or “.tif”) or facsimile signature) may approve, such approval to be conclusively evidenced
by such officer’s execution thereof. To the extent the terms and conditions of the Notes are not set forth herein, such terms and
conditions of the Notes shall be as set forth in the form attached as Exhibit A hereto.
ARTICLE 5
SUPPLEMENTAL INDENTURES
Section
5.01. Supplemental Indentures without Consent of Holders. Solely with respect to the Notes, and not for the purposes
of any other Securities, Section 10.01 of the Base Indenture shall be amended to (i) delete the word “and” at the end of clause
(o) thereof, (ii) replace the period at the end of clause (p) thereof with “; and” and (iii) add a new clause (q) immediately
after clause (p), which shall read as follows:
“(q)
to implement in accordance with the terms of this Indenture and any supplemental indenture any Three-Month Term SOFR Conventions or any
Benchmark Transition Event provisions after a Benchmark Transition Event and its related Benchmark Replacement Date have occurred (or
in anticipation thereof).”
ARTICLE 6
IMMUNITY OF STOCKHOLDERS, EMPLOYEES, AGENTS, OFFICERS AND
DIRECTORS
Section
6.01. Indenture and Notes Solely Corporate Obligations. Solely with respect to the Notes, and not for the purposes of any
other Securities, Section 13.01 of the Base Indenture shall be replaced in its entirety with the following:
“No
recourse for the payment of the principal of or interest on any Note, for any claim based thereon, or otherwise in respect thereof, shall
be had against any incorporator, shareholder, officer, director, employee or agent, as such, past, present or future, of the Company or
of any successor Person to the Company, it being expressly understood that all such liability is hereby expressly waived and released
as a condition of, and as a consideration for, the execution of this Second Supplemental Indenture and the issue of the Notes.”
ARTICLE 7
MISCELLANEOUS
Section
7.01. Ratification of Base Indenture. Solely with respect to the Notes, the Base Indenture, as supplemented by this Second
Supplemental Indenture, is in all respects ratified and confirmed, and this Second Supplemental Indenture shall be deemed part of the
Base Indenture in the manner and to the extent herein and therein provided.
Section
7.02. Trustee Not Responsible for Recitals. The recitals contained herein and in the Notes, except the
Trustee’s certificates of authentication, shall be taken as statements of the Company and not those of the Trustee, and the
Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representations as to the validity or
sufficiency of this Second Supplemental Indenture or of the Notes. The Trustee shall not be accountable for the use or application
by the Company of the Notes or of the proceeds thereof.
Section
7.03. New York Law To Govern. THIS SECOND SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.
Section
7.04. Severability. In case any provision in this Second Supplemental Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired by such
invalid, illegal or unenforceable provision.
Section
7.05. Counterparts. This Second Supplemental Indenture may be executed in any number of counterparts each of which shall be
an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Second Supplemental
Indenture and of signature pages by facsimile or electronic format (i.e., “.pdf” or “.tif”) transmission shall
constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of
the original Second Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic format
(i.e., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes provided that, notwithstanding
anything herein to the contrary, the Trustee is not under any obligation to agree to accept electronic signatures in any form or in any
format unless expressly agreed to by such Trustee pursuant to procedures approved by such Trustee.
Section
7.06. Benefits of Second Supplemental Indenture. Nothing in this Second Supplemental Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties to this Second Supplemental Indenture and their successors under this Second
Supplemental Indenture and the holders of the Notes from time to time, any benefit or any legal or equitable right, remedy or claim under
this Second Supplemental Indenture.
Section
7.07. Conflict with Base Indenture. If any provision of this Second Supplemental Indenture relating to the Notes is inconsistent
with any provision of the Base Indenture, such provision of this Second Supplemental Indenture shall control.
Section
7.08. Provisions of Trust Indenture Act Controlling. This Second Supplemental Indenture is subject to the provisions of the
Trust Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions.
If any provision of this Second Supplemental Indenture limits, qualifies, or conflicts with a provision of the Trust Indenture Act that
is required under the Trust Indenture Act to be a part of and govern this Second Supplemental Indenture, the provision of the Trust Indenture
Act shall control.
Section
7.09. Successors. All agreements of the Company in the Base Indenture, this Second Supplemental Indenture and the Notes shall
bind its successors. All agreements of the Trustee in the Base Indenture and this Second Supplemental Indenture shall bind its successors.
[REMAINDER OF PAGE LEFT
INTENTIONALLY BLANK.]
IN
WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly executed as of the day and year first written
above.
| |
FLUSHING FINANCIAL CORPORATION |
| |
|
| |
By: |
/s/ Susan K. Cullen |
| |
|
Susan K. Cullen |
| |
|
Senior Executive Vice President, Treasurer and Chief Financial Officer |
| |
|
| |
WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee |
| |
|
| |
By: |
/s/ Michael H. Wass |
| |
|
Michael H. Wass |
| |
|
Vice President |
[Signature
Page to Second Supplemental Indenture]
EXHIBIT
A
[Note:
The following legend is to be placed at the beginning of any Global Note representing Notes.]
GLOBAL
NOTE
THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO IN THIS SECURITY AND IS REGISTERED IN THE NAME OF A DEPOSITARY
(AS DEFINED HEREIN) OR ITS NOMINEE. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN
THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE OR A SUCCESSOR OF SUCH DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR AND
NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND
DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY (AS DEFINED HEREIN) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
THIS
SECURITY AND THE OBLIGATIONS OF THE COMPANY EVIDENCED HEREBY (1) ARE NOT DEPOSITS WITH OR HELD BY THE COMPANY AND ARE NOT INSURED BY
ANY FEDERAL AGENCY, INCLUDING, WITHOUT LIMITATION, THE FEDERAL DEPOSIT INSURANCE CORPORATION AND (2) ARE SUBORDINATE IN RIGHT OF PAYMENT
TO THE SENIOR INDEBTEDNESS (AS DEFINED IN THE INDENTURE IDENTIFIED HEREIN) OF THE COMPANY.
FLUSHING
FINANCIAL CORPORATION
6.000% FIXED-TO-FLOATING
RATE SUBORDINATED NOTES DUE 2032
| No.
1 |
|
CUSIP:
343873
AC9 |
|
| |
|
|
|
| $65,000,000 |
|
ISIN:
US343873AC95 |
|
Flushing
Financial Corporation, a Delaware corporation (the “Company,” which term includes any successor corporation under
the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal
sum of $65,000,000 U.S. DOLLARS (or such other amount as set forth in the Schedule of Increases or Decreases in the Note attached hereto)
on September 1, 2032 (such date, the “Maturity Date”), unless redeemed prior to such Maturity Date, and to pay interest
thereon as set forth below:
From
and including August 24, 2022, to, but excluding, September 1, 2027 (unless redeemed prior to such date pursuant to Section
3.02 of the Second Supplemental Indenture (as defined herein)) (the “Fixed Rate Period”), this note
(this “Note”) will bear interest at a rate of 6.000% per year. During the Fixed Rate Period, interest on the Note
will accrue from and including August 24, 2022, and will be payable semiannually in arrears on March 1 and September 1 of each year
during the Fixed Rate Period, commencing on March 1, 2023 (each such date, a “Fixed Period Interest Payment
Date”). The interest payable on the Note on any Fixed Period Interest Payment Date will, except as noted below, be paid to the
holder of the Note at the close of business on the 15th calendar day (whether or not a Business Day) immediately preceding the Fixed
Period Interest Payment Date.
From
and including September 1, 2027, to, but excluding, the Maturity Date (unless redeemed prior to such date pursuant to Section
3.01 or Section 3.02 of the Second Supplemental Indenture) (the “Floating Rate Period”),
this Note will bear interest at a floating rate per year equal to the Benchmark, plus 313.0 basis points. During the Floating Rate Period,
interest on the Note will accrue from and including September 1, 2027 and will be payable quarterly in arrears on March 1, June 1, September
1 and December 1 of each year, commencing on December 1, 2027 (each such date, a “Floating Period Interest Payment Date”
and, together with a Fixed Period Interest Payment Date, each an “Interest Payment Date”). The interest payable on
the Note on any Floating Period Interest Payment Date will, except as noted below, be paid to the holder of the Note at the close of
business on the 15th calendar day (whether or not a Business Day) immediately preceding the Floating Period Interest Payment Date. However,
interest that the Company pays on the Maturity Date will be paid to the Person to whom the principal will be payable. Notwithstanding
the foregoing, if the Benchmark is less than zero, then the Benchmark shall be deemed to be zero.
Principal
and interest on the Note will be payable by wire transfer in immediately available funds in U.S. Dollars at an office or agency of the
Company maintained for such purpose, which shall initially be the Corporate Trust Office of the Trustee.
Reference
is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.
(Signature
page follows)
IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed.
| Dated: |
FLUSHING FINANCIAL CORPORATION |
| |
|
| |
By: |
|
| |
|
Susan K. Cullen |
| |
|
Senior Executive Vice President, Treasurer and Chief Financial
Officer |
TRUSTEE’S
CERTIFICATE OF AUTHENTICATION
This is one
of the Securities of the Series designated therein referred to in the within-mentioned Indenture.
| Dated: |
WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee |
| |
|
| |
By: |
|
| |
Name: Michael H. Wass |
| |
Title: Vice President |
[Signature
Page to Note]
REVERSE
OF NOTE
FLUSHING
FINANCIAL CORPORATION
6.000% FIXED-TO-FLOATING
RATE SUBORDINATED NOTES DUE 2032
This
Note is one of a duly authorized issue of Securities of the Company of a series designated as the “6.000% Fixed-to-Floating
Rate Subordinated Notes Due 2032” (the “Notes”) initially issued in an aggregate principal amount of $65,000,000
on August 24, 2022. Such series of Securities has been established pursuant to, and is one of an unsecured indefinite number of series
of subordinated debt securities of the Company issued or issuable under and pursuant to, the Subordinated Indenture (the “Base
Indenture”), dated as of November 22, 2021, between the Company and Wilmington Trust, National Association, as Trustee (herein
called the “Trustee,” which term includes any successor trustee), as supplemented and amended by the Second Supplemental
Indenture, between the Company and the Trustee, dated as of August 24, 2022 (the “Second Supplemental Indenture” and
the Base Indenture as supplemented and amended by the Second Supplemental Indenture, the “Indenture”), to which Indenture
and any other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Persons in whose names Notes are registered on the Security Register
from time to time and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note shall not be valid
until the Trustee manually signs the certificate of authentication on this Note. The terms, conditions and provisions of the Notes are
those stated in the Indenture, those made part of the Indenture by reference to the Trust Indenture Act, and those set forth in this
Note. To the extent that the terms, conditions and provisions of this Note modify, supplement or are inconsistent with those
of the Indenture, then the terms, conditions and other provisions of the Indenture shall govern to the extent such terms, conditions
and other provisions of this Note are not inconsistent with the terms, conditions and provisions made part of the Indenture by reference
to the Trust Indenture Act.
All
capitalized terms used in this Note and not defined herein that are defined in the Base Indenture or the Second Supplemental Indenture
shall have the meanings assigned to them in the Base Indenture or the Second Supplemental Indenture. If any capitalized term used in
this Note and defined herein is also defined in the Base Indenture or the Second Supplemental Indenture, in the event of any conflict
in the meanings ascribed to such capitalized term, the definition of the capitalized term in this Note shall control. To the extent any
provision of this Note conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.
The
indebtedness of the Company evidenced by the Notes, including the principal thereof and interest thereon, is, to the extent and in the
manner set forth in the Second Supplemental Indenture, subordinate and junior in right of payment to obligations of the Company constituting
the Senior Indebtedness (as defined in the Second Supplemental Indenture) on the terms and subject to the terms and conditions as provided
and set forth in Section 2.06 of the Second Supplemental Indenture and shall rank pari passu in right of payment
with all other Notes and with all other unsecured subordinated indebtedness of the Company issued under the Indenture and not by its
terms subordinate and junior in right of payment to the promissory notes, bonds, debentures or other evidences of indebtedness of a type
that includes the Notes. Each holder by his acceptance of this Note, agrees to and shall be bound by such provisions of the Indenture
and authorizes and expressly directs the Trustee on such holder’s behalf to take such actions as may be necessary or appropriate
to effectuate the subordination provided in the Indenture.
During
the Fixed Rate Period, interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. During the Floating
Rate Period, interest will be computed on the basis of a 360-day year and the actual number of days elapsed. Dollar amounts resulting
from those calculations will be rounded to the nearest cent, with one-half cent being rounded upward.
If
any Fixed Period Interest Payment Date for the Note or the date for the payment of principal for the Note occurring during the Fixed
Rate Period falls on a day that is not a Business Day, the Company will postpone the interest or principal payment to the next
succeeding Business Day, but the payments made on such dates will be treated as being made on the date that the payment was first
due and the holder of the Note will not be entitled to any further interest, principal or other payments with respect to such
postponements. If any Floating Period Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the
Company will postpone the interest payment or the payment of principal and interest at the Maturity Date to the next succeeding
Business Day (and, with respect to the Maturity Date, no additional interest will accrue on the amount payable for the period from
and after the Maturity Date), unless, with respect to a Floating Period Interest Payment Date only, such day falls in the next
calendar month, in which case the Floating Period Interest Payment Date will instead be the immediately preceding day that is a
Business Day, and interest will accrue to, but excluding, such Floating Period Interest Payment Date as so adjusted.
The
Notes are intended to be treated as Tier 2 capital (or its then equivalent if the Company were subject to such capital requirement) for
purposes of capital adequacy guidelines of the Federal Reserve Board as then in effect and applicable to the Company. If an Event of
Default with respect to Notes shall occur and be continuing, the principal and any accrued and unpaid interest on the Notes shall only
become due and payable in accordance with the terms and conditions set forth in Article 6 of the Base Indenture and Section 2.07 of the
Second Supplemental Indenture. Accordingly, the holder of this Note has no right to accelerate the maturity of this Note in the
event the Company fails to pay the principal of or interest on any of the Notes or fails to perform any other obligations under the Notes
or in the Indenture that are applicable to the Notes.
The
Notes may be redeemed by the Company as set forth in the Indenture.
The
Notes are not entitled to the benefit of any sinking fund. The Notes shall not be convertible into or exchangeable for any equity securities,
other securities or other assets of the Company or any Subsidiary.
Article
XIV of the Base Indenture shall be applicable to the Notes.
The
Notes are issuable and may be transferred only in fully registered form without coupons, in minimum denominations of $1,000 or any amount
in excess thereof that is an integral multiple of $1,000.
The
Company and the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the
owner hereof for all purposes, whether or not this Note is overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.
No
reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest (if any) on this Security at the times, place and
rate, and in the coin or currency, herein prescribed.
[This
Security is a global note, represented by one or more permanent global certificates registered in the name of the nominee of The Depository
Trust Company (each a “Global Note” and collectively, the “Global Notes”). Accordingly, unless
and until it is exchanged in whole or in part for individual certificates evidencing the Notes represented hereby, this Security may
not be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC or by DTC or any nominee to a successor Depositary
or any nominee of such successor. Ownership of beneficial interests in this Security will be shown on, and the transfer of that ownership
will be effected only through, records maintained by the applicable Depositary or its nominee (with respect to interest of Persons that
have accounts with the Depositary (“Participants”) and the records of Participants (with respect to interests of Persons
other than Participants)). Beneficial interests in Notes owned by Persons that hold through Participants will be evidenced only by, and
transfers of such beneficial interests with such Participants will be effected only through, records maintained by such Participants.
Except as provided below, owners of beneficial interests in this Security will not be entitled to have any individual certificates and
will not be considered the owners or holders thereof under the Indenture.
Except
in the limited circumstances set forth in Section 2.07 of the Base Indenture, Participants and owners of beneficial interests
in the Global Notes will not be entitled to receive Securities in definitive form and will not be considered holders of Notes. None of
the Company, the Trustee or the Paying Agent will be liable for any delay by the Depositary, its nominee or any direct or indirect Participant
in identifying the beneficial owners of the related Notes. The Company and the Paying Agent may conclusively rely on, and will be protected
in relying on, instructions from the Depositary or its nominee for all purposes, including with respect to the registration and delivery,
and the respective principal amounts, of the Notes to be issued.
Except
as provided in Section 2.07 of the Base Indenture, beneficial owners of Global Notes will not be entitled to receive physical delivery
of Notes in definitive form and no Global Note will be exchangeable except for another Global Note of like denomination and tenor to
be registered in the name of the Depositary or its nominee. Accordingly, each Person owning a beneficial interest in a Global Note must
rely on the procedures of the Depositary and, if such Person is not a Participant, on the procedures of the Participant through which
such Person owns its interest, to exercise any rights of a holder under the Notes.
The
laws of some jurisdictions may require that purchasers of securities take physical delivery of those securities in definitive form. Accordingly,
the ability to transfer interests in the Notes represented by a Global Note to those Persons may be limited. In addition, because the
Depositary can act only on behalf of its Participants, who in turn act on behalf of Persons who hold interests through Participants,
the ability of a Person having an interest in Notes represented by a Global Note to pledge or transfer such interest to Persons that
do not participate in the Depositary’s system, or otherwise to take actions in respect of such interest, may be affected by the
lack of a physical definitive security in respect of such interest. None of the Company, the Trustee, the Paying Agent or the
Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of
Notes by the Depositary, or for maintaining, supervising or reviewing any records of the Depositary relating to the Notes.]1
Wilmington
Trust, National Association will act as the Company’s Paying Agent with respect to the Notes through its offices presently located
at Wilmington Trust, National Association, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, Attention: Flushing
Financial Corporation Administrator, Telephone: (302) 636-6398. The Company may at any time rescind the designation of a Paying
Agent, appoint a successor Paying Agent, or approve a change in the office through which any Paying Agent acts.
Customary
abbreviations may be used in the name of a holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants
by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(= Uniform Gifts to Minors Act).
Pursuant
to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused the CUSIP number
for the Series of Securities of which the Notes are a part to be printed on the Notes as a convenience to the holders of the Notes. No
representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification
numbers printed hereon.
THIS
NOTE SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
1
Bolded language to be included only in Global Note.
ASSIGNMENT
FORM
To
assign the within Security, fill in the form below:
I
or we assign and transfer the within Security to:
(Insert
assignee’s legal name)
(Insert
assignee’s social security or tax I.D. no.)
(Print
or type assignee’s name, address and zip code)
and
irrevocably appoint as agent to transfer this Security on the books of Flushing Financial Corporation. The agent may substitute
another to act for it.
Your
Signature:
(Sign
exactly as your name appears on the other side of this Security)
Your Name:
Date:
Signature Guarantee:
*
* NOTICE:
The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs:
(i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.
SIGNATURE
GUARANTEE
Signatures
must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Security registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.
SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL NOTE
The initial
principal amount of this Global Note is $65,000,000. The following increases or decreases in the principal amount of this Global Note
have been made:
| Date | | |
Amount of decrease
in
principal amount of
this
Global Note | |
Amount of increase
in
principal amount of
this
Global Note | |
Principal
amount of this
Global Note
following such
decrease or
increase | |
Signature of
authorized
signatory of
Trustee |
