Note 8 - Borrowed Funds and Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2011

Debt Disclosure [Text Block]

8. Borrowed Funds and Securities Sold Under Agreements to Repurchase

Borrowed funds and securities sold under agreements to repurchase are summarized as follows at December 31:

	2011					2010
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Repurchase agreements - fixed rate:
Due in 2011	$	-		-		$	10,000		4.87
Due in 2012		18,000		4.71			18,000		4.71
Due in 2013		30,000		2.92			50,000		3.78
Due in 2014		9,300		1.27			-		-
Due in 2016		70,000		3.89			30,000		4.98
Due in 2017		58,000		4.19			58,000		4.32
Total repurchase agreements - fixed rate		185,300		3.77			166,000		4.35
FHLB-NY advances - fixed rate:
Due in 2011		-		-			141,550		4.48
Due in 2012		62,000		3.59			136,000		4.37
Due in 2013		10,000		1.30			42,526		2.99
Due in 2014		79,911		3.02			79,911		3.02
Due in 2015		115,964		1.45			12,376		1.74
Due in 2016		96,919		1.99			18,094		1.95
Due in 2017		108,734		3.93			80,000		4.41
Total FHLB-NY advances - fixed rate		473,528		2.67			510,457		3.93
Junior subordinated debentures - adjustable rate Due in 2037		26,311		16.96			32,226		13.89
Total borrowings	$	685,139		3.51	%	$	708,683		4.47	%

Borrowings which have call provisions are summarized as follows at December 31, 2011:

	Amount		Rate		Maturity Date	Call Date
	(Dollars in thousands)
Repurchase agreements - fixed rate	$	18,000		4.28	10/18/2017	1/18/2012
Repurchase agreements - fixed rate		18,000		4.71	4/19/2012	1/19/2012
Repurchase agreements - fixed rate		10,000		3.99	7/27/2016	1/27/2012
Repurchase agreements - fixed rate		10,000		4.89	7/28/2016	1/30/2012
Repurchase agreements - fixed rate		20,000		5.02	7/28/2016	1/30/2012
Repurchase agreements - fixed rate		10,000		2.81	5/7/2013	2/7/2012
Repurchase agreements - fixed rate		10,000		2.91	8/7/2013	2/7/2012
Repurchase agreements - fixed rate		20,000		4.05	9/19/2017	3/19/2012
Repurchase agreements - fixed rate		20,000		4.26	9/21/2017	3/21/2012
Repurchase agreements - fixed rate		10,000		3.88	6/27/2016	3/27/2012
Repurchase agreements - fixed rate		20,000		2.20	7/12/2016	7/14/2014
FHLB-NY advances - fixed rate		20,000		4.43	10/10/2017	1/9/2012
FHLB-NY advances - fixed rate		10,000		4.13	9/18/2017	3/19/2012
FHLB-NY advances - fixed rate		10,000		4.32	9/18/2017	3/19/2012
FHLB-NY advances - fixed rate		10,000		4.15	9/18/2017	3/19/2012
FHLB-NY advances - fixed rate		30,000		4.60	10/10/2017	10/9/2012

As part of the Company’s strategy to finance investment opportunities and manage its cost of funds, the Company enters into repurchase agreements with broker-dealers and the FHLB-NY. These agreements are recorded as financing transactions and the obligations to repurchase are reflected as a liability in the consolidated financial statements. The securities underlying the agreements were delivered to the broker-dealers or the FHLB-NY who arranged the transaction. The securities remain registered in the name of the Company and are returned upon the maturity of the agreement. The Company retains the right of substitution of collateral throughout the terms of the agreements. All the repurchase agreements are collateralized by mortgage-backed securities. Information relating to these agreements at or for the years ended December 31 is as follows:

	2011			2010
	(Dollars in thousands)
Book value of collateral	$	236,446		$	209,561
Estimated fair value of collateral		236,446			209,561
Average balance of outstanding agreements during the year		171,092			174,750
Maximum balance of outstanding agreements at a month end during the year		185,300			186,900
Average interest rate of outstanding agreements during the year		4.07	%		4.30	%

Pursuant to a blanket collateral agreement with the FHLB-NY, advances are secured by all of the Savings Bank’s stock in the FHLB-NY and certain qualifying mortgage loans in an amount at least equal to 110% of the advances outstanding. The Savings Bank may also pledge mortgage-backed and mortgage-related securities, and other securities not otherwise pledged.

The Holding Company has three trusts formed under the laws of the State of Delaware for the purpose of issuing capital and common securities, and investing the proceeds thereof in junior subordinated debentures of the Holding Company. Each of these trusts issued $20.6 million of securities with a fixed-rate for the first five years, after which they will reset quarterly based on a spread over 3-month LIBOR. The securities are first callable at par after five years, and pay cumulative dividends. The Holding Company has guaranteed the payment of these trusts’ obligations under their capital securities. The terms of the junior subordinated debentures are the same as those of the capital securities issued by the trusts. The junior subordinated debentures issued by the Holding Company are carried at fair value in the consolidated financial statements.

The table below shows the terms of the securities issued by the trusts.

	Flushing Financial Capital Trust II	Flushing Financial Capital Trust III	Flushing Financial Capital Trust IV
Issue Date	June 20, 2007	June 21, 2007	July 3, 2007
Initial Rate	7.14%	6.89%	6.85%
First Reset Date	September 1, 2012	June 15, 2012	July 30,2012
Spread over 3-month LIBOR	1.41%	1.44%	1.42%
Maturity Date	September 1, 2037	September 15, 2037	July 30, 2037

The consolidated financial statements do not include the securities issued by the trusts, but rather include the junior subordinated debentures of the Holding Company.