10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2014

Commission file number 001-33013

FLUSHING FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	11-3209278
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1979 Marcus Avenue, Suite E140, Lake Success, New York 11042

(Address of principal executive offices)

(718) 961-5400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock $0.01 par value (and associated Preferred Stock Purchase Rights)	NASDAQ Global Select Market
(Title of each class)	(Name of exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act:  None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in rule 405 of the Securities Act.    Yes   X     No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes   X     No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     X  Yes    No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).        X  Yes     No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer___ Non-accelerated filer____ Accelerated filer   X   Smaller reporting company __

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes   X     No

As of June 30, 2014, the last business day of the registrant’s most recently completed second fiscal quarter; the aggregate market value of the voting stock held by non-affiliates of the registrant was $589,993,000.  This figure is based on the closing price on that date on the NASDAQ Global Select Market for a share of the registrant’s Common Stock, $0.01 par value, which was $20.55.

The number of shares of the registrant’s Common Stock outstanding as of February 28, 2015 was 29,493,510 shares.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Company’s definitive Proxy Statement for the Annual Meeting of Stockholders to be held on May 19, 2015 are incorporated herein by reference in Part III.

TABLE OF CONTENTS

Page
PART I
Item 1. Business.	1
GENERAL
Overview	1
Market Area and Competition	4
Lending Activities	5
Loan Portfolio Composition	5
Loan Maturity and Repricing	9
Multi-Family Residential Lending	10
Commercial Real Estate Lending	10
One-to-Four Family Mortgage Lending – Mixed-Use Properties	11
One-to-Four Family Mortgage Lending – Residential Properties	11
Construction Loans	12
Small Business Administration Lending	13
Taxi medallion	13
Commercial Business and Other Lending	13
Loan Extensions, Renewals, Modifications and Restructuring	14
Loan Approval Procedures and Authority	14
Loan Concentrations	15
Loan Servicing	15
Asset Quality	15
Loan Collection	15
Troubled Debt Restructured	16
Delinquent Loans and Non-performing Assets	16
Other Real Estate Owned	18
Investment Securities	18
Environmental Concerns Relating to Loans	18
Classified Assets	18
Allowance for Loan Losses	20
Investment Activities	24
General	24
Mortgage-backed securities	25
Sources of Funds	28
General	28
Deposits	28
Borrowings	32
Subsidiary Activities	33
Personnel	34
Omnibus Incentive Plan	34
FEDERAL, STATE AND LOCAL TAXATION	34
Federal Taxation	34
General	34

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Bad Debt Reserves	34
Distributions	34
Corporate Alternative Minimum Tax	34
State and Local Taxation	35
New York State and New York City Taxation	35
New Jersey State Taxation	36
Delaware State Taxation	36
REGULATION	36
General	36
The Dodd - Frank Act	36
Basel III	37
Volcker Rule	38
New York State Law	38
FDIC Regulation	38
Transactions with Affiliates	41
Community Reinvestment Act	42
Federal Reserve System	42
Federal Home Loan Bank System	42
Holding Company Regulations	43
Acquisition of the Holding Company	44
Federal Securities Law	44
Consumer Financial Protection Bureau	44
Mortgage Banking and Related Consumer Protection Regulations	44
Available Information	45
Item 1A. Risk Factors	45
Changes in Interest Rates May Significantly Impact Our Financial Condition and Results of Operations	45
Our Lending Activities Involve Risks that May Be Exacerbated Depending on the Mix of Loan Types	46
Failure to Effectively Manage Our Liquidity Could Significantly Impact Our Financial Condition and Results of Operations	46
Our Ability to Obtain Brokered Certificates of Deposit and Brokered Money Market Accounts as an Additional Funding Source Could be Limited	47
The Markets in Which We Operate Are Highly Competitive	47
Our Results of Operations May Be Adversely Affected by Changes in National and/or Local Economic Conditions	48
Changes in Laws and Regulations Could Adversely Affect Our Business	48
Current Conditions in, and Regulation of, the Banking Industry May Have a Material Adverse Effect on Our Results of Operations	49
Certain Anti-Takeover Provisions May Increase the Costs to or Discourage an Acquirer	50
We May Not Be Able to Successfully Implement Our Commercial Business Banking Initiative	50
The FDIC’s Adopted Restoration Plan and the Related Increased Assessment Rate Schedule May Have a Material Effect on Our Results of Operations	50
A Failure in or Breach of Our Operational or Security Systems or Infrastructure, or Those of Our Third Party Vendors and Other Service Providers, Including as a Result of Cyber Attacks, could Disrupt Our Business, Result in the Disclosure or Misuse of Confidential or Proprietary Information, Damage Our Reputation, Increase Our Costs and Cause Losses	51
We May Experience Increased Delays in Foreclosure Proceedings	52

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We May Need to Recognize Other-Than-Temporary Impairment Charges in the Future	52
The Current Economic Environment Poses Significant Challenges for us and Could Adversely Affect our Financial Condition and Results of Operations	52
We May Not Pay Dividends on Our Common Stock.	53
Goodwill Recorded as a Result of Acquisitions Could Become Impaired, Negatively Impacting Our Earnings and Capital	53
We May Not Fully Realize the Expected Benefit of Our Deferred Tax Assets	53
Item 1B. Unresolved Staff Comments	53
Item 2. Properties	53
Item 3. Legal Proceedings	53
Item 4. Mine Safety Disclosures	53
PART II
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	54
Stock Performance Graph	55
Item 6. Selected Financial Data	56
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	59
General	59
Overview	60
Management Strategy	60
Trends and Contingencies	63
Interest Rate Sensitivity Analysis	66
Interests Rate Risk	68
Analysis of Net Interest Income	68
Rate/Volume Analysis	70
Comparison of Operating Results for the Years Ended December 31, 2014 and 2013	70
Comparison of Operating Results for the Years Ended December 31, 2013 and 2012	72
Liquidity, Regulatory Capital and Capital Resources	73
Critical Accounting Policies	75
Contractual Obligations	77
New Authoritative Accounting Pronouncements	78
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	79
Item 8. Financial Statements and Supplementary Data	80
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	150
Item 9A. Controls and Procedures	150
Item 9B. Other Information	150
PART III
Item 10. Directors, Executive Officers and Corporate Governance	151
Item 11. Executive Compensation	151
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	151
Item 13. Certain Relationships and Related Transactions, and Director Independence	151
Item 14. Principal Accounting Fees and Services	151

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PART IV
Item 15. Exhibits, Financial Statement Schedules	152
(a) 1. Financial Statements	152
(a) 2. Financial Statement Schedules	152
(a) 3. Exhibits Required by Securities and Exchange Commission Regulation S-K	153
SIGNATURES	155
POWER OF ATTORNEY	155

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CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Statements contained in this Annual Report on Form 10-K (this “Annual Report”) relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed under the captions “Business — General — Allowance for Loan Losses” and “Business — General — Market Area and Competition” in Item 1 below, “Risk Factors” in Item 1A below, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Overview” in Item 7 below, and elsewhere in this Annual Report and in other documents filed by the Company with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue” or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  We have no obligation to update these forward-looking statements.

PART I

As used in this Annual Report on Form 10-K, the words “we,” “us,” “our” and the “Company” are used to refer to Flushing Financial Corporation and our consolidated subsidiaries, including the surviving entity of the merger (the “Merger”) on February 28, 2013 of our wholly owned subsidiary, Flushing Savings Bank, FSB (the “Savings Bank”) with and into Flushing Commercial Bank (the “Commercial Bank”). The surviving entity of the Merger was the Commercial Bank, whose name has been changed to “Flushing Bank.” References herein to the “Bank” mean the Savings Bank (including its wholly owned subsidiary, the Commercial Bank) prior to the Merger and the surviving entity after the Merger.

Item 1.     Business.

GENERAL

Overview

We are a Delaware corporation organized in May 1994. The Savings Bank was organized in 1929 as a New York State-chartered mutual savings bank. In 1994, the Savings Bank converted to a federally chartered mutual savings bank and changed its name from Flushing Savings Bank to Flushing Savings Bank, FSB. The Savings Bank converted from a federally chartered mutual savings bank to a federally chartered stock savings bank on November 21, 1995, at which time Flushing Financial Corporation acquired all of the stock of the Savings Bank. On February 28, 2013, in the Merger, the Savings Bank merged with and into the Commercial Bank, with the Commercial Bank as the surviving entity. Pursuant to the Merger, the Commercial Bank’s charter was changed to a full-service New York State commercial bank charter, and its name was changed to Flushing Bank. Also in connection with the Merger, Flushing Financial Corporation became a bank holding company. We have not made any significant changes to our operations or services as a result of the Merger. The primary business of Flushing Financial Corporation has been the operation of the Bank. The Bank owns three subsidiaries: Flushing Preferred Funding Corporation, Flushing Service Corporation, and FSB Properties Inc. The Bank has an internet branch, iGObanking.com®. The activities of Flushing Financial Corporation are primarily funded by dividends, if any, received from the Bank, issuances of junior subordinated debt, and issuances of equity securities. Flushing Financial Corporation’s common stock is traded on the NASDAQ Global Select Market under the symbol “FFIC.”

Flushing Financial Corporation also owns Flushing Financial Capital Trust II, Flushing Financial Capital Trust III, and Flushing Financial Capital Trust IV (the “Trusts”), which are special purpose business trusts formed to issue a total of $60.0 million of capital securities and $1.9 million of common securities (which are the only voting securities). Flushing Financial Corporation owns 100% of the common securities of the Trusts. The Trusts used the proceeds from the issuance of these securities to purchase junior subordinated debentures from Flushing Financial Corporation. The Trusts are not included in our consolidated financial statements as we would not absorb the losses of the Trusts if losses were to occur.

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Unless otherwise disclosed, the information presented in this Annual Report reflects the financial condition and results of operations of Flushing Financial Corporation, the Bank and the Bank’s subsidiaries on a consolidated basis (collectively, the “Company”). Management views the Company as operating a single unit – a community bank.  Therefore, segment information is not provided. At December 31, 2014, the Company had total assets of $5.1 billion, deposits of $3.5 billion and stockholders’ equity of $456.2 million.

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential properties, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans, primarily for residential properties; (3) Small Business Administration (“SBA”) loans and other small business loans;  (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. At December 31, 2014, we had gross loans outstanding of $3,798.7 million (before the allowance for loan losses and net deferred costs), with gross mortgage loans totaling $3,321.5 million, or 87.4% of gross loans, and non-mortgage loans totaling $477.2 million, or 12.6% of gross loans. Mortgage loans are primarily multi-family, commercial and one-to-four family mixed-use properties, which combined totaled 82.1% of gross loans. Our revenues are derived principally from interest on our mortgage and other loans and mortgage-backed securities portfolio, and interest and dividends on other investments in our securities portfolio. Our primary sources of funds are deposits, Federal Home Loan Bank of New York (“FHLB-NY”) borrowings, repurchase agreements, principal and interest payments on loans, mortgage-backed and other securities, proceeds from sales of securities and, to a lesser extent, proceeds from sales of loans. On July 21, 2011, as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Savings Bank’s primary regulator became the Office of the Comptroller of the Currency (“OCC”) and Flushing Financial Corporation’s primary regulator became the Federal Reserve Board of Governors (“Federal Reserve”). Upon completion of the Merger, the Bank’s primary regulator became the New York State Department of Financial Services (“NYSDFS”) (formerly, the New York State Banking Department), and its primary federal regulator became the Federal Deposit Insurance Corporation (“FDIC”). Deposits are insured to the maximum allowable amount by the FDIC. Additionally, the Bank is a member of the Federal Home Loan Bank (“FHLB”) system.

Our operating results are significantly affected by national and local economic conditions, including the strength of the local economy. The national and local economies were generally considered to be in a recession from December 2007 through the middle of 2009.  This resulted in increased unemployment and declining property values, although the property value declines in our market, the New York City metropolitan area, have not been as great as many other areas of the country. While the national and local economies have shown signs of improvement since the middle of 2010, improvements in unemployment have lagged until recently when the unemployment rate decreased to 6.3% at December 2014 from 7.5% at December 31 2013, for the New York City region, according to the New York Department of Labor. We have also seen improvements in our level of non-performing loans, although they still remain at elevated levels. Non-performing loans totaled $34.2 million, $49.0 million and $89.8 million at December 31, 2014, 2013 and 2012, respectively. Additionally, we have not experienced a significant increase in foreclosed properties despite an extended foreclosure process in our market. Net charge-offs of impaired loans have decreased in 2014 to $0.7 million from $13.3 million and $20.2 million for the years ended December 31, 2013 and 2012, respectively. In response to the economic conditions in our market and the increase in non-performing loans resulting from the recession, we tightened our conservative underwriting standards in 2008 to reduce the risk associated with lending.

The following changes were made in our underwriting standards since 2008 to reduce the risk associated with lending on income producing real estate properties:

§ When borrowers requested a refinance of an existing mortgage loan when they had acquired the property or obtained their existing loan within two years of the request, we generally required evidence of improvements to the property that increased the property value to support the additional funds and generally restricted the loan-to-value ratio for the new loan to 65% of the appraised value.

§ The debt coverage ratio was increased and the loan-to-value ratio decreased for income producing properties with fewer than ten units. This required the borrower to have an additional investment in the property than previously required and provided additional protection should rental units become vacant.

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§ Borrowers who owned multiple properties were required to provide detail on all their properties to allow us to evaluate their total cash flow requirements. Based on this review, we may decline the loan application, or require a lower loan-to-value ratio and a higher debt coverage ratio.

§ Income producing properties with existing rents that were at or above the current market rent for similar properties were required to have a higher debt coverage ratio to provide protection should rents decline.

§ Borrowers purchasing properties were required to demonstrate they had satisfactory liquidity and management ability to carry the property should vacancies occur or increase.

The following changes were made in our underwriting standards since 2008 to reduce the risk on one-to-four family residential property mortgage loans and home equity lines of credit:

§ We discontinued originating home equity lines of credit without verifying the borrower’s income. This was done in two stages. Beginning in May 2008, we began verifying the borrower’s income when the home equity line of credit exceeded $100,000. Beginning in October 2009, we verified the income of all borrowers applying for a home equity line of credit.

§ We discontinued offering one-to-four family residential property mortgage loans to self-employed individuals based on stated income and verifiable assets in June 2010.

The following changes were made in our underwriting standards since 2008 to reduce the risk associated with business lending:

§ All borrowers obtaining a business loan were required to submit a complete financial information package, regardless of the amount of the loan. Previously, borrowers for SBA Express loans and other loans under $150,000 had been exempt from this requirement.

§ Background checks on all borrowers and guarantors for business loans were expanded to identify and review information in more public records, including a search for judgments, liens, negative press articles, and affiliations with other entities.

§ The guarantee of related business entities providing cash flow to the borrowing entity became required for business loans.

§ The allowable percentage of inventory and accounts receivable pledged as collateral for a business loan was reduced.

§ We established specific risk acceptance criteria for private not for profit schools.

The economic conditions we have experienced since December 2007 resulted in loan originations declining year-over-year from 2008 through 2011. In 2012 the trend of declining loan originations reversed with loan originations improving year-over-year in 2012 through 2014. Loan originations and purchases for 2014 increased $122.2 million, or 14.6%, to $958.2 million from $836.0 million for 2013.

Our operating results are also affected by extensions, renewals, modifications and restructuring of loans in our loan portfolio. Loans which are renewed, modified or restructured are required to be fully underwritten in accordance with our policy for new loans, except when the borrower is seeking a reduction in the interest rate due to a decline in interest rates in the market, or for a loan classified as a troubled debt restructured (“TDR”). Our policy for modifying a loan due to the borrower’s request for changes in the terms will depend on the change requested. The borrower must be current and have a good payment history to have a loan modified. If the borrower is seeking additional funds, the loan is fully underwritten in accordance with our policy for new loans. If the borrower is seeking a reduction in the interest rate due to a decline in interest rates in the market, we generally limit our review as follows: (1) for income producing properties and business loans, to a review of the operating results of the property/business and a satisfactory inspection of the property, and (2) for one-to-four residential properties, to a satisfactory inspection of the property. Our policy on restructuring a loan when the loan will be classified as a TDR requires the loan to be fully underwritten in accordance with Company policy. The borrower must demonstrate the ability to repay the loan under the new terms. When the restructuring results in a TDR, we may waive some requirements of Company policy provided the borrower has demonstrated the ability to meet the requirements of the restructured loan and repay the restructured loan. While our formal lending policies do not prohibit making additional loans to a borrower or any related interest of the borrower who is past due in principal or interest more than 90 days, it has been our practice not to make additional loans to a borrower or a related interest of the borrower if the borrower is past due more than 90 days as to principal or interest. During the most recent three fiscal years, we did not make any additional loans to a borrower or any related interest of the borrower who was past due in principal or interest more than 90 days. All extensions, renewals, restructurings and modifications must be approved by either the Board of Directors of the Bank (the “Bank Board of Directors”) or its Loan Committee (the “Loan Committee”).

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Our operating results are also affected by losses on non-performing loans. Our policy requires a reappraisal by an independent third party when a loan becomes twelve months delinquent. We generally obtain a reappraisal by an independent third party for loans over 90 days delinquent when the outstanding loan balance is at least $1.0 million. We also obtain reappraisals when our internally prepared valuation of a property indicates there has been a decline in value below the outstanding balance of the loan, or when a property inspection has indicated significant deterioration in the condition of the property. These internal valuations are prepared when a loan becomes 90 days delinquent.

The Bank has a business banking unit. Our business strategy includes a transition from a traditional thrift to a more “commercial-like” banking institution by focusing on the development of a full complement of commercial business deposit, loan and cash management products. As of December 31, 2014 the business banking unit had $461.5 million in gross loans outstanding and $134.6 million of customer deposits.

The Bank has an internet branch, iGObanking.com®, which provides access to consumers in markets outside our geographic locations. Accounts can be opened online at www.iGObanking.com or by mail.  The internet branch does not currently accept loan applications.  As of December 31, 2014, the internet branch had $281.6 million of customer deposits.

The Savings Bank formed a wholly owned subsidiary, Flushing Commercial Bank, a New York State-chartered commercial bank, for the limited purpose of providing banking services to public entities including counties, cities, towns, villages, school districts, libraries, fire districts and the various courts throughout the New York City metropolitan area. The Commercial Bank was formed in response to New York State law, which requires that municipal deposits and state funds must be deposited into a bank or trust company as defined in New York State law. The Savings Bank was not considered an eligible bank or trust company for this purpose. On February 28, 2013, in the Merger, the Savings Bank merged with and into the Commercial Bank, with the Commercial Bank as the surviving entity. Pursuant to the Merger, the Commercial Bank’s charter was changed to a full-service New York State commercial bank charter, and its name was changed to Flushing Bank.

Market Area and Competition

We are a community oriented financial institution offering a wide variety of financial services to meet the needs of the communities we serve.  The Bank’s main office is in Flushing, New York, located in the Borough of Queens.  At December 31, 2014, the Bank operated out of 17 full-service offices, located in the New York City Boroughs of Queens, Brooklyn, and Manhattan, and in Nassau County, New York. We also operate an internet branch, iGObanking.com®. We maintain our executive offices in Lake Success in Nassau County, New York. Substantially all of our mortgage loans are secured by properties located in the New York City metropolitan area.

We face intense competition both in making loans and in attracting deposits. Competition for loans in our market is primarily based on the types of loans offered and the related terms for these loans, including fixed-rate versus adjustable-rate loans and the interest rate on the loan. For adjustable rate loans, competition is also based on the repricing period, the index to which the rate is referenced, and the spread over the index rate. Also, competition is influenced by the ability of a financial institution to respond to customer requests and to provide the borrower with a timely decision to approve or deny the loan application.

Our market area has a high density of financial institutions, many of which have greater financial resources, name recognition and market presence, and all of which are competitors to varying degrees. Particularly intense competition exists for deposits, as we compete with over 115 banks and thrifts in the counties in which we have branch locations. Our market share of deposits in these counties is approximately 0.32% of the total deposits of these competing financial institutions, and we are the 25th largest financial institution. In addition, we compete with credit unions, the stock market and mutual funds for customers’ funds. Competition for deposits in our market and for national brokered deposits is primarily based on the types of deposits offered and rate paid on the deposits. Particularly intense competition also exists in all of the lending activities we emphasize. In addition to the financial institutions mentioned above, we compete against mortgage banks and insurance companies located both within our market and available on the internet. Competition for loans in our market is primarily based on the types of loans offered and the related terms for these loans, including fixed-rate versus adjustable-rate loans and the interest rate on the loan. For adjustable rate loans, competition is also based on the repricing period, the index to which the rate is referenced, and the spread over the index rate. Also, competition is influenced by the ability of a financial institution to respond to customer requests and to provide the borrower with a timely decision to approve or deny the loan application. The internet banking arena also has many larger financial institutions which have greater financial resources, name recognition and market presence. Our future earnings prospects will be affected by our ability to compete effectively with other financial institutions and to implement our business strategies. Our strategy for attracting deposits includes using various marketing techniques, delivering enhanced technology and customer friendly banking services, and focusing on the unique personal and small business banking needs of the multi-ethnic communities we serve. Our strategy for attracting new loans is primarily dependent on providing timely response to applicants and maintaining a network of quality brokers. See “Risk Factors – The Markets in Which We Operate Are Highly Competitive” included in Item 1A of this Annual Report.

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For a discussion of our business strategies, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview — Management Strategy” included in Item 7 of this Annual Report.

Lending Activities

Loan Portfolio Composition.  Our loan portfolio consists primarily of mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans. In addition, we also offer construction loans, SBA loans, Taxi medallion loans and other consumer loans. Substantially all of our mortgage loans are secured by properties located within our market area. At December 31, 2014, we had gross loans outstanding of $3,798.7 million (before the allowance for loan losses and net deferred costs).

Since 2009 we have focused our mortgage loan origination efforts on multi-family residential mortgage loans, although recently we have cautiously increased our focus on commercial real estate and business loans with full banking relationships. In prior years we had focused our mortgage loan originations on multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loans. These loans generally have higher yields than one-to-four family residential properties, and include prepayment penalties that we collect if the loans pay in full prior to the contractual maturity. We expect to continue this emphasis on multi-family residential mortgage loans, commercial real estate and business loans with full banking relationships through marketing and by maintaining competitive interest rates and origination fees. Our marketing efforts include frequent contact with mortgage brokers and other professionals who serve as referral sources. The reduced emphasis on commercial real estate, one-to-four family mixed-use property mortgage loans, and construction loans since 2009 was due to the increased level of risk in these types of loans in the current economic environment. However, due to the changes in our underwriting standards, which we believe has reduced risk in newly originated commercial real estate mortgage loans, we have increased our focus on the origination of commercial real estate mortgage loans.

Fully underwritten one-to-four family residential mortgage loans generally are considered by the banking industry to have less risk than other types of loans. Multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loans generally have higher yields than one-to-four family residential property mortgage loans and shorter terms to maturity, but typically involve higher principal amounts and may expose the lender to a greater risk of credit loss than one-to-four family residential property mortgage loans. Our increased emphasis on multi-family residential mortgage loans since 2009, and on multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loans during years prior to 2009, has increased the overall level of credit risk inherent in our loan portfolio. The greater risk associated with multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loans could require us to increase our provisions for loan losses and to maintain an allowance for loan losses as a percentage of total loans in excess of the allowance we currently maintain. We continually review the composition of our mortgage loan portfolio to manage the risk in the portfolio. As a result of this ongoing review, we reduced our reliance on commercial real estate and one-to-four family mixed-use property mortgage loans during the most recent two years, and tightened our conservative underwriting standards to further reduce the risk associated with lending. See “General – Overview” in this Item 1 of this Annual Report. To date, we have not experienced significant losses in our multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loan portfolios.

Our mortgage loan portfolio consists of adjustable rate mortgage (“ARM”) loans and fixed-rate mortgage loans. Interest rates we charge on loans are affected primarily by the demand for such loans, the supply of money available for lending purposes, the rate offered by our competitors and the creditworthiness of the borrower. Many of those factors are, in turn, affected by local and national economic conditions, and the fiscal, monetary and tax policies of the federal, state and local governments.

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In general, consumers show a preference for ARM loans in periods of high interest rates and for fixed-rate loans when interest rates are low. In periods of declining interest rates, we may experience refinancing activity in ARM loans, as borrowers show a preference to lock-in the lower rates available on fixed-rate loans. In the case of ARM loans we originated, volume and adjustment periods are affected by the interest rates and other market factors as discussed above as well as consumer preferences. We have not in the past, nor do we currently, originate ARM loans that provide for negative amortization.

Prior to 2007, we had grown our construction loan portfolio. During 2007, we began to deemphasize construction loans, as originations of new construction loans declined.  We have continued to deemphasize construction loans since then as we reduced the balance of our construction loan portfolio, which totaled $5.3 million at December 31, 2014.  We intend to continue to deemphasize construction loans in the near term. We obtain a first lien position on the underlying collateral, and generally obtain personal guarantees on construction loans. These loans generally have a term of two years or less. Construction loans involve a greater degree of risk than other loans because, among other things, the underwriting of such loans is based on an estimated value of the developed property, which can be difficult to ascertain in light of uncertainties inherent in such estimations.  In addition, construction lending entails the risk that the project may not be completed due to cost overruns or changes in market conditions. The greater risk associated with construction loans could require us to increase our provision for loan losses, and to maintain an allowance for loan losses as a percentage of total loans in excess of the allowance we currently maintain. To date, we have not incurred significant losses in our construction loan portfolio.

The business banking unit was formed in 2006 to focus on loan and deposit relationships to businesses located within our market area. These loans are generally personally guaranteed by the owners, and may be secured by the assets of the business, including real estate. The interest rate on these loans is generally an adjustable rate based on a published index. These loans, while providing us a higher rate of return, also present a higher level of risk. The greater risk associated with business loans could require us to increase our provision for loan losses, and to maintain an allowance for loan losses as a percentage of total loans in excess of the allowance we currently maintain. To date, we have not incurred significant losses in our business loan portfolio.

From time to time, we may purchase loans from banks, mortgage bankers and other financial institutions when the loans complement our loan portfolio strategy. Loans purchased must meet our underwriting standards when they were originated. Our lending activities are subject to federal and state laws and regulations. See “— Regulation.”

6

The following table sets forth the composition of our loan portfolio at the dates indicated.

	At December 31,
	2014						2013						2012						2011						2010
	Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total			Amount			Percent of Total
	(Dollars in thousands)
Mortgage Loans:
Multi-family residential	$	1,923,460			50.64	%	$	1,712,039			50.02	%	$	1,534,438			47.62	%	$	1,391,221			43.28	%	$	1,252,176			38.40	%
Commercial real estate		621,569			16.36			512,552			14.97			515,438			16.00			580,783			18.07			662,794			20.33
One-to-four family - mixed-use property		573,779			15.10			595,751			17.40			637,353			19.79			693,932			21.59			728,810			22.36
One-to-four family - residential (1)		187,572			4.94			193,726			5.66			198,968			6.18			220,431			6.86			241,376			7.41
Co-operative apartment (2)		9,835			0.26			10,137			0.30			6,303			0.20			5,505			0.17			6,215			0.19
Construction		5,286			0.14			4,247			0.12			14,381			0.45			47,140			1.47			75,519			2.32
Gross mortgage loans		3,321,501			87.44			3,028,452			88.47			2,906,881			90.24			2,939,012			91.44			2,966,890			91.01
Non-mortgage loans:
Small Business Administration		7,134			0.19			7,792			0.23			9,496			0.29			14,039			0.44			17,511			0.54
Taxi medallion		22,519			0.59			13,123			0.38			9,922			0.31			54,328			1.69			88,264			2.71
Commercial business and other		447,500			11.78			373,641			10.92			295,076			9.16			206,614			6.43			187,161			5.74
Gross non-mortgage loans		477,153			12.56			394,556			11.53			314,494			9.76			274,981			8.56			292,936			8.99
Gross loans		3,798,654			100.00	%		3,423,008			100.00	%		3,221,375			100.00	%		3,213,993			100.00	%		3,259,826			100.00	%
Unearned loan fees and deferred costs, net		11,719						11,170						12,746						14,888						16,503
Less: Allowance for loan losses		(25,096	)					(31,776	)					(31,104	)					(30,344	)					(27,699	)
Loans, net	$	3,785,277					$	3,402,402					$	3,203,017					$	3,198,537					$	3,248,630

(1) One-to-four family residential mortgage loans also include home equity and condominium loans.  At December 31, 2014, gross home equity loans totaled $55.7 million and condominium loans totaled $22.3 million.

(2) Consists of loans secured by shares representing interests in individual co-operative units that are generally owner occupied.

7

The following table sets forth our loan originations (including the net effect of refinancing) and the changes in our portfolio of loans, including purchases, sales and principal reductions for the years indicated:

	For the years ended December 31,
(In thousands)	2014		2013		2012
Mortgage Loans
At beginning of year	$	3,028,452	$	2,906,881	$	2,939,012
Mortgage loans originated:
Multi-family residential		314,148		382,041		317,663
Commercial real estate		165,054		68,968		31,789
One-to-four family mixed-use property		50,070		40,898		15,961
One-to-four family residential		24,727		27,495		24,485
Co-operative apartment		170		4,966		1,810
Construction		1,566		3,089		806
Total mortgage loans originated		555,735		527,457		392,514
Mortgage loans purchased:
Multi-family residential		106,830		-		-
Commercial real estate		14,794		452		-
Total mortgage loans purchased		121,624		452		-
Less:
Principal reductions		363,206		363,805		359,168
Loans transferred to loans held for sale		-		9,524		6,498
Mortgage loan sales		12,871		18,306		34,033
Charge-offs		1,780		12,329		19,284
Mortgage loan foreclosures		6,453		2,374		5,662
At end of year	$	3,321,501	$	3,028,452	$	2,906,881
Non-mortgage loans
At beginning of year	$	394,556	$	314,494	$	274,981
Loans originated:
Small Business Administration		1,611		603		529
Taxi Medallion		-		-		8
Commercial business		227,904		292,385		231,877
Other		3,056		5,360		4,138
Total other loans originated		232,571		298,348		236,552
Non-mortgage loans purchased:
Taxi Medallion		14,431		9,737		3,456
Commercial business		33,805		-		-
Total non-mortgage loans purchased		48,236		9,737		3,456
Less:
Non-mortgage loan sales		4		-		1,379
Loans transferred to loans held for sale		1,150		-		5,400
Principal reductions		196,394		225,509		191,731
Charge-offs		662		2,514		1,985
At end of year	$	477,153	$	394,556	$	314,494

8

Loan Maturity and Repricing. The following table shows the maturity of our total loan portfolio at December 31, 2014.  Scheduled repayments are shown in the maturity category in which the payments become due.

	Mortgage loans												Non-mortgage loans
(In thousands)	Multi-family residential		Commercial real estate		One-to-four family mixed-use property		One-to-four family residential		Co-operative apartment		Construction		Small Business Administration		Taxi Medallion		Commercial business and other		Total loans
Amounts due within one year	$	151,798	$	94,754	$	42,148	$	7,852	$	336	$	5,286	$	2,286	$	11,692	$	179,756	$	495,908
Amounts due after one year:
One to two years		146,099		72,850		33,631		7,944		345		-		1,189		9,488		61,171		332,717
Two to three years		146,335		64,536		28,648		7,657		355		-		757		1,134		44,558		293,980
Three to five years		142,334		58,352		25,795		7,158		367		-		503		205		38,462		273,176
Over five years		1,336,894		331,077		443,557		156,961		8,432		-		2,399		-		123,553		2,402,873
Total due after one year		1,771,662		526,815		531,631		179,720		9,499		-		4,848		10,827		267,744		3,302,746
Total amounts due	$	1,923,460	$	621,569	$	573,779	$	187,572	$	9,835	$	5,286	$	7,134	$	22,519	$	447,500	$	3,798,654
Sensitivity of loans to changes in interest rates - loans due after one year:
Fixed rate loans	$	330,328	$	80,760	$	93,150	$	42,498	$	1,564	$	-	$	119	$	10,361	$	98,693	$	657,473
Adjustable rate loans		1,441,334		446,055		438,481		137,222		7,935		-		4,729		466		169,051		2,645,273
Total loans due after one year	$	1,771,662	$	526,815	$	531,631	$	179,720	$	9,499	$	-	$	4,848	$	10,827	$	267,744	$	3,302,746

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Multi-Family Residential Lending.  Loans secured by multi-family residential properties were $1,923.5 million, or 50.64% of gross loans, at December 31, 2014. Our multi-family residential mortgage loans had an average principal balance of $0.8 million at December 31, 2014, and the largest multi-family residential mortgage loan held in our portfolio had a principal balance of $44.1 million, secured by 13 properties.  We offer both fixed-rate and adjustable-rate multi-family residential mortgage loans, with maturities of up to 30 years.

In underwriting multi-family residential mortgage loans, we review the expected net operating income generated by the real estate collateral securing the loan, the age and condition of the collateral, the financial resources and income level of the borrower and the borrower’s experience in owning or managing similar properties. We typically require debt service coverage of at least 125% of the monthly loan payment. During 2008, we increased the required debt service coverage ratio for multi-family residential loans with ten units or less. We generally originate these loans up to only 75% of the appraised value or the purchase price of the property, whichever is less. Any loan with a final loan-to-value ratio in excess of 75% must be approved by the Bank Board of Directors or the Loan Committee as an exception to policy. We generally rely on the income generated by the property as the primary means by which the loan is repaid. However, personal guarantees may be obtained for additional security from these borrowers. We typically order an environmental report on our multi-family and commercial real estate loans.

Loans secured by multi-family residential property generally involve a greater degree of risk than residential mortgage loans and carry larger loan balances. The increased credit risk is the result of several factors, including the concentration of principal in a smaller number of loans and borrowers, the effects of general economic conditions on income producing properties and the increased difficulty in evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by multi-family residential property is typically dependent upon the successful operation of the related property, which is usually owned by a legal entity with the property being the entity’s only asset. If the cash flow from the property is reduced, the borrower’s ability to repay the loan may be impaired. If the borrower defaults, our only remedy may be to foreclose on the property, for which the market value may be less than the balance due on the related mortgage loan. Loans secured by multi-family residential property also may involve a greater degree of environmental risk. We seek to protect against this risk through obtaining an environmental report. See “—Asset Quality — Environmental Concerns Relating to Loans.”

At December 31, 2014, $1,548.9 million, or 80.53%, of our multi-family mortgage loans consisted of ARM loans. We offer ARM loans with adjustment periods typically of five years and for terms of up to 30 years.  Interest rates on ARM loans currently offered by us are adjusted at the beginning of each adjustment period based upon a fixed spread above the FHLB-NY corresponding Regular Advance Rate. From time to time, due to competitive forces, we may originate ARM loans at an initial rate lower than the fully indexed rate as a result of a discount on the spread for the initial adjustment period.  Multi-family adjustable-rate mortgage loans generally are not subject to limitations on interest rate increases either on an adjustment period or aggregate basis over the life of the loan. We originated and purchased multi-family ARM loans totaling $398.9 million, $197.8 million and $221.7 million during 2014, 2013 and 2012, respectively.

At December 31, 2014, $374.5 million, or 19.47%, of our multi-family mortgage loans consisted of fixed rate loans. Our fixed-rate multi-family mortgage loans are generally originated for terms up to 15 years and are competitively priced based on market conditions and our cost of funds. We originated and purchased $22.1 million, $184.3 million and $95.9 million of fixed-rate multi-family mortgage loans in 2014, 2013 and 2012, respectively.

Commercial Real Estate Lending.  Loans secured by commercial real estate were $621.6 million, or 16.36% of gross loans, at December 31, 2014. Our commercial real estate mortgage loans are secured by improved properties such as office buildings, hotels/motels, nursing homes, small business facilities, strip shopping centers, warehouses, and, to a lesser extent, religious facilities. At December 31, 2014, our commercial real estate mortgage loans had an average principal balance of $1.0 million and the largest of such loans, which was secured by seven multi-tenant shopping centers, had a principal balance of $24.0 million. Commercial real estate mortgage loans are generally originated in a range of $100,000 to $6.0 million.

In underwriting commercial real estate mortgage loans, we employ the same underwriting standards and procedures as are employed in underwriting multi-family residential mortgage loans.

Commercial real estate mortgage loans generally carry larger loan balances than one-to-four family residential mortgage loans and involve a greater degree of credit risk for the same reasons applicable to multi-family loans.

10

At December 31, 2014, $529.5 million, or 85.18%, of our commercial mortgage loans consisted of ARM loans. We offer ARM loans with adjustment periods of one to five years and generally for terms of up to 15 years.  Interest rates on ARM loans currently offered by us are adjusted at the beginning of each adjustment period based upon a fixed spread above the FHLB-NY corresponding Regular Advance Rate. From time to time, we may originate ARM loans at an initial rate lower than the index as a result of a discount on the spread for the initial adjustment period. Commercial adjustable-rate mortgage loans generally are not subject to limitations on interest rate increases either on an adjustment period or aggregate basis over the life of the loan. We originated and purchased commercial ARM loans totaling $169.6 million, $43.9 million and $19.9 million during 2014, 2013 and 2012, respectively.

At December 31, 2014, $92.1 million, or 14.82%, of our commercial mortgage loans consisted of fixed-rate loans. Our fixed-rate commercial mortgage loans are generally originated for terms up to 20 years and are competitively priced based on market conditions and our cost of funds. We originated and purchased $10.2 million, $25.5 million and $11.9 million of fixed-rate commercial mortgage loans in 2014, 2013 and 2012, respectively.

One-to-Four Family Mortgage Lending – Mixed-Use Properties.  We offer mortgage loans secured by one-to-four family mixed-use properties. These properties contain up to four residential dwelling units and a commercial unit. We offer both fixed-rate and adjustable-rate one-to-four family mixed-use property mortgage loans with maturities of up to 30 years and a general maximum loan amount of $1,000,000.  Loan originations primarily result from applications received from mortgage brokers and mortgage bankers, existing or past customers, and persons who respond to our marketing efforts and referrals. One-to-four family mixed-use property mortgage loans were $573.8 million, or 15.10% of gross loans, at December 31, 2014.

In underwriting one-to-four family mixed-use property mortgage loans, we employ the same underwriting standards as are employed in underwriting multi-family residential mortgage loans.

At December 31, 2014, $456.2 million, or 79.50%, of our one-to-four family mixed-use property mortgage loans consisted of ARM loans. We offer adjustable-rate one-to-four family mixed-use property mortgage loans with adjustment periods typically of five years and for terms of up to 30 years.  Interest rates on ARM loans currently offered by the Bank are adjusted at the beginning of each adjustment period based upon a fixed spread above the FHLB-NY corresponding Regular Advance Rate. From time to time, we may originate ARM loans at an initial rate lower than the index as a result of a discount on the spread for the initial adjustment period. One-to-four family mixed-use property adjustable-rate mortgage loans generally are not subject to limitations on interest rate increases either on an adjustment period or aggregate basis over the life of the loan. We originated and purchased one-to-four family mixed-use property ARM loans totaling $39.4 million, $20.3 million and $10.8 million during 2014, 2013 and 2012, respectively.

At December 31, 2014, $117.6 million, or 20.50%, of our one-to-four family mixed-use property mortgage loans consisted of fixed-rate loans. Our fixed-rate one-to-four family mixed-use property mortgage loans are originated for terms of up to 15 years and are competitively priced based on market conditions and the Bank’s cost of funds. We originated and purchased $10.7 million, $20.6 million and $5.2 million of fixed-rate one-to-four family mixed-use property mortgage loans in 2014, 2013 and 2012, respectively.

One-to-Four Family Mortgage Lending – Residential Properties.  We offer mortgage loans secured by one-to-four family residential properties, including townhouses and condominium units. For purposes of the description contained in this section, one-to-four family residential mortgage loans, co-operative apartment loans and home equity loans are collectively referred to herein as “residential mortgage loans.” We offer both fixed-rate and adjustable-rate residential mortgage loans with maturities of up to 30 years and a general maximum loan amount of $1,000,000. Loan originations generally result from applications received from mortgage brokers and mortgage bankers, existing or past customers, and referrals. Residential mortgage loans were $187.6 million, or 4.94% of gross loans, at December 31, 2014.

We generally originate residential mortgage loans in amounts up to 80% of the appraised value or the sale price, whichever is less. We may make residential mortgage loans with loan-to-value ratios of up to 90% of the appraised value of the mortgaged property; however, private mortgage insurance is required whenever loan-to-value ratios exceed 80% of the appraised value of the property securing the loan.

11

In addition to income verified loans, we have in the past originated residential mortgage loans to self-employed individuals within our local community based on stated income and verifiable assets that allowed us to assess repayment ability, provided that the borrower’s stated income is considered reasonable for the borrower’s type of business. The preponderance of stated income one-to-four family residential mortgage loans were made available to self-employed individuals within our local community for their primary residence. Our underwriting standards required that we verify the assets of the borrowers and the sources of their cash flows. The information reviewed for purchases included at least three months and refinances included at least one month of personal bank statements (checking and savings accounts), statements of investment accounts, business checking account statements (when applicable), and other information provided by the borrowers about their personal holdings. Our review of these bank statements allowed us to assess whether or not their stated income appeared reasonable in comparison to their cash flows, and if their income level supported their personal holdings. We also obtained and reviewed credit reports on these borrowers. An acceptable credit report was one of the key factors in approving this type of mortgage loan. We obtained appraisals from an independent third party for the property, and limited the amount we lent on the properties to 80% of the lesser of the property’s appraised value or the purchase price. Home equity lines of credit were offered on one-to-four residential properties to homeowners based on various levels of income verification. We limited the amount available under a home equity line of credit to 80% of the lesser of the appraised value of the property and the purchase price. These loans involve a higher degree of risk as compared to our other fully underwritten residential mortgage loans as there is a greater opportunity for self-employed borrowers to falsify or overstate their level of income and ability to service indebtedness. This risk is mitigated by the requirements discussed above in our loan policy. In addition, since 2008, the underwriting standards for home equity loans were modified to discontinue originating home equity lines of credit without verifying the borrower’s income.  This was accomplished in two stages.  Beginning in May 2008, we began verifying the borrower’s income when the home equity line of credit exceeded $100,000.  Beginning in October 2009, we verified the income of all borrowers applying for a home equity line of credit. We also discontinued offering one-to-four family residential property mortgage loans to self-employed individuals based on stated income and verifiable assets in June 2010. We had $12.9 million and $15.8 million outstanding of one-to four family residential mortgage loans originated to individuals based on stated income and verifiable assets at December 31, 2014 and 2013, respectively. We had $44.8 million and $49.9 million advanced on home equity lines of credit for which we did not verify the borrowers’ income at December 31, 2014 and 2013, respectively.

At December 31, 2014, $141.3 million, or 75.31%, of our residential mortgage loans consisted of ARM loans. We offer ARM loans with adjustment periods of one, three, five, seven or ten years. Interest rates on ARM loans currently offered by us are adjusted at the beginning of each adjustment period based upon a fixed spread above the FHLB-NY corresponding Regular Advance Rate. From time to time, we may originate ARM loans at an initial rate lower than the index as a result of a discount on the spread for the initial adjustment period. ARM loans generally are subject to limitations on interest rate increases of 2% per adjustment period and an aggregate adjustment of 6% over the life of the loan. We originated and purchased adjustable rate residential mortgage loans totaling $21.0 million, $17.6 million and $23.6 million during 2014, 2013 and 2012, respectively.

The retention of ARM loans in our portfolio helps us reduce our exposure to interest rate risks.  However, in an environment of rapidly increasing interest rates, it is possible for the interest rate increase to exceed the maximum aggregate adjustment on one-to-four family residential ARM loans and negatively affect the spread between our interest income and our cost of funds.

ARM loans generally involve credit risks different from those inherent in fixed-rate loans, primarily because if interest rates rise, the underlying payments of the borrower rise, thereby increasing the potential for default. However, this potential risk is lessened by our policy of originating one-to-four family residential ARM loans with annual and lifetime interest rate caps that limit the increase of a borrower’s monthly payment.

At December 31, 2014, $46.3 million, or 24.69%, of our residential mortgage loans consisted of fixed-rate loans. Our fixed-rate residential mortgage loans typically are originated for terms of 15 and 30 years and are competitively priced based on market conditions and our cost of funds. We originated and purchased $3.9 million, $4.3 million and $2.7 million in 15-year fixed-rate residential mortgages in 2014, 2013 and 2012, respectively. We did not originate or purchase any 30-year fixed-rate residential mortgages in 2014, 2013 and 2012.

 At December 31, 2014, home equity loans totaled $55.7 million, or 1.47%, of gross loans. Home equity loans are included in our portfolio of residential mortgage loans. These loans are offered as adjustable-rate “home equity lines of credit” on which interest only is due for an initial term of 10 years and thereafter principal and interest payments sufficient to liquidate the loan are required for the remaining term, not to exceed 30 years.  These adjustable “home equity lines of credit” may include a “floor” and/or a “ceiling” on the interest rate that we charge for these loans. These loans also may be offered as fully amortizing closed-end fixed-rate loans for terms up to 15 years.  The majority of home equity loans originated are owner occupied one-to-four family residential properties and condominium units.  To a lesser extent, home equity loans are also originated on one-to-four residential properties held for investment and second homes.  All home equity loans are subject to an 80% loan-to-value ratio computed on the basis of the aggregate of the first mortgage loan amount outstanding and the proposed home equity loan. They are generally granted in amounts from $25,000 to $300,000.

12

Construction Loans. At December 31, 2014, construction loans totaled $5.3 million, or 0.14%, of gross loans. Our construction loans primarily have been made to finance the construction of one-to-four family residential properties, multi-family residential properties and residential condominiums. We also, to a limited extent, finance the construction of commercial real estate. Our policies provide that construction loans may be made in amounts up to 70% of the estimated value of the developed property and only if we obtain a first lien position on the underlying real estate. However, we generally limit construction loans to 60% of the estimated value of the developed property. In addition, we generally require personal guarantees on all construction loans. Construction loans are generally made with terms of two years or less. Advances are made as construction progresses and inspection warrants, subject to continued title searches to ensure that we maintain a first lien position.  We made construction loans of $1.6 million, $3.1 million and $0.8 million during 2014, 2013 and 2012, respectively.

Construction loans involve a greater degree of risk than other loans because, among other things, the underwriting of such loans is based on an estimated value of the developed property, which can be difficult to ascertain in light of uncertainties inherent in such estimations.  In addition, construction lending entails the risk that the project may not be completed due to cost overruns or changes in market conditions.

Small Business Administration Lending.  At December 31, 2014, SBA loans totaled $7.1 million, representing 0.19%, of gross loans. These loans are extended to small businesses and are guaranteed by the SBA up to a maximum of 85% of the loan balance for loans with balances of $150,000 or less, and to a maximum of 75% of the loan balance for loans with balances greater than $150,000. We also provide term loans and lines of credit up to $350,000 under the SBA Express Program, on which the SBA provides a 50% guaranty. The maximum loan size under the SBA guarantee program was $2.0 million, with a maximum loan guarantee of $1.5 million. The Small Business Jobs Act of 2010 permanently increased the limits to a maximum loan size of $5.0 million, with a maximum loan guarantee of $3.75 million. All SBA loans are underwritten in accordance with SBA Standard Operating Procedures which requires collateral and the personal guarantee of the owners with more than 20% ownership from SBA borrowers. Typically, SBA loans are originated in the range of $25,000 to $2.0 million with terms ranging from one to seven years and up to 25 years for owner occupied commercial real estate mortgages. SBA loans are generally offered at adjustable rates tied to the prime rate (as published in the Wall Street Journal) with adjustment periods of one to three months.  At times, we may sell the guaranteed portion of certain SBA term loans in the secondary market, realizing a gain at the time of sale, and retaining the servicing rights on these loans, collecting a servicing fee of approximately 1%. We originated and purchased $1.6 million, $0.6 million and $0.5 million of SBA loans during 2014, 2013 and 2012, respectively.

Taxi Medallion. At December 31, 2014, taxi medallion loans totaled $22.5 million, or 0.59%, of gross loans. We originate and purchase loans made to New York City and Chicago taxi medallion owners, which loans are secured by liens on the taxi medallions.  We originate and purchase taxi medallion loans up to 80% of the value of the taxi medallion. We originated and purchased $14.4 million, $9.7 million and $3.5 million of taxi medallion loans during 2014, 2013 and 2012, respectively.

Commercial Business and Other Lending. At December 31, 2014, commercial business and other loans totaled $447.5 million, or 11.78%, of gross loans. We originate and purchase commercial business loans and other loans for business, personal, or household purposes. Commercial business loans are provided to businesses in the New York City metropolitan area with annual sales of up to $250.0 million. Our commercial business loans include lines of credit and term loans including owner occupied mortgages. These loans are secured by business assets, including accounts receivables, inventory and real estate and generally require personal guarantees. The Bank also, at times, enters into participations/syndications with other banks on senior secured commercial business loans. Commercial business loans are generally originated in a range of $100,000 to $10.0 million.

At December 31, 2014, $334.2 million, or 74.67%, of our commercial business loans consisted of ARM loans. We generally offer ARM loans with adjustment periods of five years for owner occupied mortgages and for lines of credit the adjustment period is generally monthly.  Interest rates on ARM loans currently offered by us are adjusted at the beginning of each adjustment period based upon a fixed spread above the FHLB-NY corresponding Regular Advance Rate for owner occupied mortgages and a fixed spread above the London Interbank Offered Rate (“LIBOR”) or Prime Rate for lines of credit. Commercial business adjustable-rate loans generally are not subject to limitations on interest rate increases either on an adjustment period or aggregate basis over the life of the loan.

At December 31, 2014, $113.3 million, or 25.33%, of our commercial business loans consisted of fixed-rate loans. Our fixed-rate commercial business loans are generally originated for terms up to 20 years and are competitively priced based on market conditions and our cost of funds.

13

Other loans generally consist of overdraft lines of credit. Generally, unsecured consumer loans are limited to amounts of $5,000 or less for terms of up to five years. We originated and purchased $3.1 million, $5.4 million and $4.1 million of other loans during 2014, 2013 and 2012, respectively. The underwriting standards employed by us for consumer and other loans include a determination of the applicant’s payment history on other debts and assessment of the applicant’s ability to meet payments on all of his or her obligations.  In addition to the creditworthiness of the applicant, the underwriting process also includes a comparison of the value of the collateral, if any, to the proposed loan amount.  Unsecured loans tend to have higher risk, and therefore command a higher interest rate.

Loan Extensions, Renewals, Modifications and Restructuring. Extensions, renewals, modifications or restructuring a loan, other than a loan that is classified as a TDR, requires the loan to be fully underwritten in accordance with our policy for new loans. The borrower must be current to have a loan extended, renewed or restructured. Our policy for modifying a mortgage loan due to the borrower’s request for changes in the terms will depend on the changes requested. The borrower must be current and have a good payment history to have a loan modified. If the borrower is seeking additional funds, the loan is fully underwritten in accordance with our policy for new loans. If the borrower is seeking a reduction in the interest rate due to a decline in interest rates in the market, we generally limit our review as follows: (1) for income producing properties and business loans, to a review of the operating results of the property/business and a satisfactory inspection of the property, and (2) for one-to-four residential properties, to a satisfactory inspection of the property. Our policy on restructuring a loan when the loan will be classified as a TDR requires the loan to be fully underwritten in accordance with Company policy. The borrower must demonstrate the ability to repay the loan under the new terms. When the restructuring results in a TDR, we may waive some requirements of Company policy provided the borrower has demonstrated the ability to meet the requirements of the restructured loan and repay the restructured loan. While our formal lending policies do not prohibit making additional loans to a borrower or any related interest of the borrower who is past due in principal or interest more than 90 days, it has been our practice not to make additional loans to a borrower or a related interest of the borrower if the borrower is past due more than 90 days as to principal or interest. During the most recent three fiscal years, we did not make any additional loans to a borrower or any related interest of the borrower who was past due in principal or interest more than 90 days. All extensions, renewals, restructurings and modifications must be approved by either the Loan Committee or the Bank Board of Directors.

Loan Approval Procedures and Authority. The Board of Directors of the Company (the “Board of Directors”) approved lending policies establishes loan approval requirements for our various types of loan products.  Our Residential Mortgage Lending Policy (which applies to all one-to-four family mortgage loans, including residential and mixed-use property) establishes authorized levels of approval. One-to-four family mortgage loans that do not exceed $750,000 require two signatures for approval, one of which must be from either the President, Executive Vice President or a Senior Vice President (collectively, “Authorized Officers”) and the other from a Senior Underwriter, Manager, Underwriter or Junior Underwriter in the Residential Mortgage Loan Department (collectively, “Loan Officers”), and ratification by the Management Loan Committee. For one-to-four family mortgage loans in excess of $750,000 up to $1.0 million, three signatures are required for approval, at least two of which must be from Authorized Officers, and the other one may be a Loan Officer, and ratification by the Management Loan Committee. The Loan Committee or the Bank Board of Directors also must approve one-to-four family mortgage loans in excess of $1.0 million. Pursuant to our Commercial Real Estate Lending Policy, all loans secured by commercial real estate and multi-family residential properties must be approved by the President or the Executive Vice President, Chief of Real Estate Lending upon the recommendation of the appropriate Senior Vice President, and ratification by the Management Loan Committee. Such loans in excess of $1.0 million up to and including $2.5 million must also be approved by the Management Loan Committee and ratified by the Loan Committee or the Bank Board of Directors. Such loans in excess of $2.5 million also require Loan Committee or Bank Board of Directors approval. In accordance with our Business Credit Policy all business and SBA loans up to $1.5 million must be approved by the Business Loan Committee and ratified by the Management Loan Committee. Business and SBA loans in excess of $1.5 million up to $2.5 million must be approved by the Management Loan Committee and ratified by the Loan Committee. Commercial business and other loans require two signatures for approval, one of which must be from an Authorized Officer. Our Construction Loan Policy requires construction loans up to and including $1.0 million must be approved by the Senior Executive Vice President, Chief of Real Estate Lending and the Executive Vice President of Commercial Real Estate, and ratified by the Management Loan Committee or the Loan Committee. Such loans in excess of $1.0 million up to and including $2.5 million require the same officer approvals, approval of the Management Loan Committee, and ratification of the Loan Committee or the Bank Board of Directors.  Construction loans in excess of $2.5 million up to and including $15.0 million require the same officer approvals, approval by the Management Loan Committee, and approval of the Loan Committee or the Bank Board of Directors. Construction loans in excess of $15.0 million require the same officer approvals, approval by the Management Loan Committee, and approval of the Bank Board of Directors.  Any loan, regardless of type, that deviates from our written credit policies must be approved by the Loan Committee or the Bank Board of Directors.

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For all loans originated by us, upon receipt of a completed loan application, a credit report is ordered and certain other financial information is obtained. An appraisal of the real estate intended to secure the proposed loan is required to be received. An independent appraiser designated and approved by us currently performs such appraisals.  Our staff appraisers review all appraisals. The Bank Board of Directors annually approves the independent appraisers used by the Bank and approves the Bank’s appraisal policy.  It is our policy to require borrowers to obtain title insurance and hazard insurance on all real estate loans prior to closing. For certain borrowers, and/or as required by law, the Bank may require escrow funds on a monthly basis together with each payment of principal and interest to a mortgage escrow account from which we make disbursements for items such as real estate taxes and, in some cases, hazard insurance premiums.

Loan Concentrations.  The maximum amount of credit that the Bank can extend to any single borrower or related group of borrowers generally is limited to 15% of the Bank’s unimpaired capital and surplus, or $70.8 million at December 31, 2014.  Applicable laws and regulations permit an additional amount of credit to be extended, equal to 10% of unimpaired capital and surplus, if the loan is secured by readily marketable collateral, which generally does not include real estate.  See “-Regulation.”  However, it is currently our policy not to extend such additional credit. At December 31, 2014, there were no loans in excess of the maximum dollar amount of loans to one borrower that the Bank was authorized to make. At that date, the three largest concentrations of loans to one borrower consisted of loans secured by commercial real estate, multi-family income producing properties and business loans with an aggregate principal balance of $66.7 million, $56.6 million and $53.0 million for each of the three borrowers, respectively.

Loan Servicing. At December 31, 2014, we were servicing $1.5 million of mortgage loans and $10.2 million of SBA loans for others. Our policy is to retain the servicing rights to the mortgage and SBA loans that we sell in the secondary market, other than non-performing loans that are sold with servicing released to the buyer. In order to increase revenue, management intends to continue this policy.

Asset Quality

Loan Collection.  When a borrower fails to make a required payment on a loan, we take a number of steps to induce the borrower to cure the delinquency and restore the loan to current status. In the case of mortgage loans, personal contact is made with the borrower after the loan becomes 30 days delinquent. We take a proactive approach to managing delinquent loans, including conducting site examinations and encouraging borrowers to meet with one of our representatives. When deemed appropriate, we develop short-term payment plans that enable borrowers to bring their loans current, generally within six to nine months. At times, when a borrower is experiencing financial difficulties, we may restructure a loan to enable a borrower to continue making payments when it is deemed to be in our best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as “Troubled Debt Restructured”.  At December 31, 2014, we had $12.7 million of loans classified as Troubled Debt Restructured, with $10.4 million of these loans performing according to their restructured terms and $2.4 million not performing according to their restructured terms. We review delinquencies on a loan by loan basis, diligently exploring ways to help borrowers meet their obligations and return them back to current status, and we have increased staffing to handle delinquent loans by hiring people experienced in loan workouts.

When the borrower has indicated that they will be unable to bring the loan current, or due to other circumstances which, in our opinion, indicate the borrower will be unable to bring the loan current within a reasonable time, the loan is classified as non-performing. All loans classified as non-performing, which includes all loans past due 90 days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. At December 31, 2014, there were 10 loans, which totaled $2.3 million, past due 90 days or more and still accruing interest.

Upon classifying a loan as non-performing, we review available information and conditions that relate to the status of the loan, including the estimated value of the loan’s collateral and any legal considerations that may affect the borrower’s ability to continue to make payments. Based upon the available information, we will consider the sale of the loan or retention of the loan. If the loan is retained, we may continue to work with the borrower to collect the amounts due or start foreclosure proceedings. If a foreclosure action is initiated and the loan is not brought current, paid in full, or refinanced before the foreclosure sale, the real property securing the loan is sold at foreclosure or by us as soon thereafter as practicable.

Once the decision to sell a loan is made, we determine what we would consider adequate consideration to be obtained when that loan is sold, based on the facts and circumstances related to that loan. Investors and brokers are then contacted to seek interest in purchasing the loan. We have been successful in finding buyers for some of our non-performing loans offered for sale that are willing to pay what we consider to be adequate consideration. Terms of the sale include cash due upon closing of the sale, no contingencies or recourse to us, servicing is released to the buyer and time is of the essence. These sales usually close within a reasonably short time period.

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This strategy of selling non-performing loans has allowed us to optimize our return by quickly converting our non-performing loans to cash, which can then be reinvested in earning assets. This strategy also allows us to avoid lengthy and costly legal proceedings that may occur with non-performing loans. We sold 34 delinquent loans totaling $15.9 million, 72 delinquent loans totaling $33.4 million, and 77 delinquent loans totaling $44.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. We recorded net recoveries on delinquent loans that were sold during 2014 of $0.4 million, compared to net charge-offs of $4.7 million and $5.7 million during 2013 and 2012, respectively. We realized gross gains of $67,000, $134,000 and $21,000 on the sale of delinquent loans for the years ended December 31, 2014, 2013 and 2012, respectively.  We realized gross losses $81,000 and $69,000 on the sale of delinquent loans for the years ended December 31, 2013 and 2012, respectively. We did not record any gross losses during the year ended December 31, 2014. There can be no assurances that we will continue this strategy in future periods, or if continued, we will be able to find buyers to pay adequate consideration.

On mortgage loans or loan participations purchased by us for whom the seller retains the servicing rights, we receive monthly reports with which we monitor the loan portfolio. Based upon servicing agreements with the servicers of the loans, we rely upon the servicer to contact delinquent borrowers, collect delinquent amounts and initiate foreclosure proceedings, when necessary, all in accordance with applicable laws, regulations and the terms of the servicing agreements between us and our servicing agents. The servicers are required to submit monthly reports on their collection efforts on delinquent loans. At December 31, 2014, we held $293.3 million of loans that were serviced by others.

In the case of commercial business or other loans, we generally send the borrower a written notice of non-payment when the loan is first past due. In the event payment is not then received, additional letters and phone calls generally are made in order to encourage the borrower to meet with one of our representatives to discuss the delinquency. If the loan still is not brought current and it becomes necessary for us to take legal action, which typically occurs after a loan is delinquent 90 days or more, we may attempt to repossess personal or business property that secures an SBA loan, commercial business loan or consumer loan.

Troubled Debt Restructured . We have restructured certain problem loans for borrowers who are experiencing financial difficulties by either: reducing the interest rate until the next reset date, extending the amortization period thereby lowering the monthly payments, deferring a portion of the interest payment, or changing the loan to interest only payments for a limited time period. At times, certain problem loans have been restructured by combining more than one of these options. These restructurings have not included a reduction of principal balance. We believe that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. These restructured loans are classified as troubled debt restructured (“TDR”). Loans which have been current for six consecutive months at the time they are restructured as TDR remain on accrual status. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status until they have made timely payments for six consecutive months.

The following table shows our recorded investment in loans classified as TDR that are performing according to their restructured terms at the periods indicated:

	At December 31,
(Dollars in thousands)	2014		2013		2012		2011		2010
Multi-family residential	$	3,035	$	3,087	$	2,347	$	9,412	$	7,946
Commercial real estate		2,373		2,407		7,190		2,499		5,815
One-to-four family mixed-use property		2,381		2,692		2,336		795		206
One-to-four family residential		354		364		374		-		-
Construction		-		746		3,805		5,888		-
Commercial business and other		2,249		4,406		3,849		2,000		-
Total performing troubled debt restructured	$	10,392	$	13,702	$	19,901	$	20,594	$	13,967

Loans that are restructured as TDR but are not performing in accordance with the restructured terms are excluded from the TDR table above, as they are placed on non-accrual status and reported as non-performing loans. At December 31, 2014 and 2013, there were two loans for $2.4 million and one loan totaling $2.3 million, respectively, which were restructured as TDR which were not performing in accordance with their restructured terms.

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Delinquent Loans and Non-performing Assets. We generally discontinue accruing interest on delinquent loans when a loan is 90 days past due or foreclosure proceedings have been commenced, whichever first occurs.  At that time, previously accrued but uncollected interest is reversed from income. Loans in default 90 days or more as to their maturity date but not their payments, however, continue to accrue interest as long as the borrower continues to remit monthly payments.

The following table shows our non-performing assets, including Loans held for sale, at the dates indicated.  During the years ended December 31, 2014, 2013 and 2012, the amounts of additional interest income that would have been recorded on non-accrual loans, had they been current, totaled $2.1 million, $3.4 million and $7.3 million, respectively.  These amounts were not included in our interest income for the respective periods.

	At December 31,
(Dollars in thousands)	2014			2013			2012			2011			2010
Loans 90 days or more past due and still accruing:
Multi-family residential	$	676		$	52		$	-		$	6,287		$	103
Commercial real estate		820			-			-			92			3,328
One-to-four family mixed-use property		405			-			-			-			-
One-to-four family - residential		14			15			-			-			-
Commercial Business and other		386			539			644			-			6
Total		2,301			606			644			6,379			3,437
Non-accrual mortgage loans:
Multi-family residential		6,878			13,682			16,486			19,946			35,633
Commercial real estate		5,689			9,962			15,640			19,895			22,806
One-to-four family mixed-use property		6,936			9,063			18,280			28,429			30,478
One-to-four family residential		11,244			13,250			13,726			12,766			10,695
Co-operative apartments		-			57			234			152			-
Construction		-			-			7,695			14,721			4,465
Total		30,747			46,014			72,061			95,909			104,077
Non-accrual non-mortgage loans:
Small Business Administration		-			-			283			493			1,159
Commercial Business and other		1,143			2,348			16,860			14,660			3,419
Total		1,143			2,348			17,143			15,153			4,578
Total non-accrual loans		31,890			48,362			89,204			111,062			108,655
Total non-performing loans		34,191			48,968			89,848			117,441			112,092
Other non-performing assets:
Real Estate Owned		6,326			2,985			5,278			3,179			1,588
Investment securities		-			1,871			3,332			2,562			5,134
Total		6,326			4,856			8,610			5,741			6,722
Total non-performing assets	$	40,517		$	53,824		$	98,458		$	123,182		$	118,814
Non-performing loans to gross loans		0.90	%		1.43	%		2.79	%		3.65	%		3.44	%
Non-performing assets to total assets		0.80	%		1.14	%		2.21	%		2.87	%		2.75	%

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The following table shows our delinquent loans that are less than 90 days past due and still accruing interest at the periods indicated:

	December 31, 2014				December 31, 2013
	60 - 89		30 - 59		60 - 89		30 - 59
	days		days		days		days
	(In thousands)
Multi-family residential	$	1,729	$	7,721	$	3,685	$	14,102
Commercial real estate		1,345		2,171		7,699		5,029
One-to-four family - mixed-use property		1,153		10,408		1,099		14,017
One-to-four family - residential		2,038		1,751		517		3,927
Co-operative apartments		-		-		-		-
Construction loans		-		3,000		3,000		-
Small Business Administration		-		90		-		105
Taxi medallion		-		-		-		-
Commercial business and other		1,585		6		2		187
Total	$	7,850	$	25,147	$	16,002	$	37,367

Other Real Estate Owned.  We aggressively market our Other Real Estate Owned (“OREO”) properties. At December 31, 2014, we owned eight properties with a combined fair value of $6.3 million. At December 31, 2013, we owned 12 properties with a combined fair value of $3.0 million. At December 31, 2012, we owned 11 properties with a combined fair value of $5.3 million.

Investment Securities.  Non-performing investment securities included one pooled trust preferred security with a fair value of $1.9 million at December 31, 2013.This security was sold during 2014.

Environmental Concerns Relating to Loans. We currently obtain environmental reports in connection with the underwriting of commercial real estate loans, and typically obtain environmental reports in connection with the underwriting of multi-family loans. For all other loans, we obtain environmental reports only if the nature of the current or, to the extent known to us, prior use of the property securing the loan indicates a potential environmental risk.  However, we may not be aware of such uses or risks in any particular case, and, accordingly, there is no assurance that real estate acquired by us in foreclosure is free from environmental contamination or that, if any such contamination or other violation exists, whether we will have any liability.

Classified Assets.  Our policy is to review our assets, focusing primarily on the loan portfolio, OREO and the investment portfolios, to ensure that the credit quality is maintained at the highest levels. When weaknesses are identified, immediate action is taken to correct the problem through direct contact with the borrower or issuer. We then monitor these assets, and, in accordance with our policy and current regulatory guidelines, we designate them as “Special Mention,” which is considered a “Criticized Asset,” and “Substandard,” “Doubtful,” or “Loss” which are considered “Classified Assets,” as deemed necessary.  These loan designations are updated quarterly. We designate an asset as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate an asset as Doubtful when it displays the inherent weakness of a Substandard asset with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate an asset as Loss if it is deemed the debtor is incapable of repayment. We do not hold any loans designated as loss, as loans that are designated as Loss are charged to the Allowance for Loan Losses. Assets that are non-accrual are designated as Substandard, Doubtful or Loss. We designate an asset as Special Mention if the asset does not warrant designation within one of the other categories, but does contain a potential weakness that deserves closer attention. Our total Criticized and Classified assets were $76.5 million at December 31, 2014, a decrease of $53.7 million from $130.2 million at December 31, 2013.

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The following table sets forth the Bank's Criticized and Classified assets at December 31, 2014:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Loans:
Multi-family residential	$	6,494	$	10,226	$	-	$	-	$	16,720
Commercial real estate		5,453		7,100		-		-		12,553
One-to-four family - mixed-use property		5,254		12,499		-		-		17,753
One-to-four family - residential		2,352		13,056		-		-		15,408
Co-operative apartments		623		-		-		-		623
Construction loans		-		-		-		-		-
Small Business Administration		479		-		-		-		479
Commercial business and other		2,841		3,779		-		-		6,620
Total loans		23,496		46,660		-		-		70,156
Other Real Estate Owned		-		6,326		-		-		6,326
Total	$	23,496	$	52,986	$	-	$	-	$	76,482

The following table sets forth the Bank's Criticized and Classified assets at December 31, 2013:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Loans:
Multi-family residential	$	9,940	$	19,089	$	-	$	-	$	29,029
Commercial real estate		13,503		16,820		-		-		30,323
One-to-four family - mixed-use property		7,992		14,898		-		-		22,890
One-to-four family - residential		2,848		14,026		-		-		16,874
Co-operative apartments		-		59		-		-		59
Construction loans		746		-		-		-		746
Small Business Administration		310		-		-		-		310
Commercial business and other		7,314		8,450		50		-		15,814
Total loans		42,653		73,342		50		-		116,045
Investment Securities:(1)
Pooled trust preferred securities		-		11,134		-		-		11,134
Total investment securities		-		11,134		-		-		11,134
Other Real Estate Owned		-		2,985		-		-		2,985
Total	$	42,653	$	87,461	$	50	$	-	$	130,164

(1) Our investment securities are classified as securities available for sale and as such are carried at their fair value in our Consolidated Financial Statements. The securities above had a fair value of $7.9 million at December 31, 2013. Under current applicable regulatory guidelines, we are required to disclose the classified investment securities, as shown in the tables above, at their book values (amortized cost, or fair value for securities that are under the fair value option). Additionally, the requirement is only for the Bank’s securities. Flushing Financial Corporation did not have any securities classified or criticized at December 31, 2014 and 2013.

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On a quarterly basis all mortgage loans that are classified as Substandard or Doubtful are internally reviewed for impairment, based on updated cash flows for income producing properties, or updated independent appraisals. The loan balances of collateral dependent loans reviewed for impairment are then compared to the loans updated fair value.We consider fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off against the allowance for loan losses. At December 31, 2014, the current loan-to-value ratio on our collateral dependent loans reviewed for impairment was 40.69%.

We classify investment securities as Substandard when, based on an internal review, we concluded the securities are below investment grade. We do not have any investment securities classified as Substandard at December 31, 2014.

During 2014 we did not record any other-than-temporary impairment (“OTTI”) charges. During 2013 we recorded OTTI charges of $1.4 million on four private issue collateralized mortgage obligations. During 2012 we recorded OTTI charges of $0.8 million on five private issue collateralized mortgage obligations.

Allowance for Loan Losses

We have established and maintain on our books an allowance for loan losses that is designed to provide a reserve against estimated losses inherent in our overall loan portfolio. The allowance is established through a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of our lenders, collection policies and experience, internal loan review function and other external factors.  Additionally, we segregated our loans into two portfolios based on year of origination. One portfolio was reviewed for loans originated after December 31, 2009 and a second portfolio for loans originated prior to January 1, 2010. Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during 2009. By the end of 2009, all loans were being underwritten based on revised and tightened underwriting standards.  Loans originated prior to 2010 have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to 2010 has a similar delinquency rate. The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately. All non-accrual loans are classified impaired. Impaired loans secured by collateral are reviewed based on the fair value of their collateral. For non-collateralized impaired loans, management estimates any recoveries that are anticipated for each loan. In connection with the determination of the allowance, the market value of collateral ordinarily is evaluated by our staff appraiser. On a quarterly basis, the estimated values of impaired mortgage loans are internally reviewed, based on updated cash flows for income producing properties, and at times an updated independent appraisal is obtained.  The loan balances of collateral dependent impaired loans are then compared to the property’s updated fair value. We consider fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off. When evaluating a loan for impairment, we do not rely on guarantees, and the amount of impairment, if any, is based on the fair value of the collateral. We do not carry loans at a value in excess of the fair value due to a guarantee from the borrower. Impaired mortgage loans that were written down resulted from quarterly reviews or updated appraisals that indicated the properties’ estimated value had declined from when the loan was originated.  The Board of Directors reviews and approves the adequacy of the allowance for loan losses on a quarterly basis.

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In assessing the adequacy of the allowance, we review our loan portfolio by separate categories which have similar risk and collateral characteristics, e.g., multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential, co-operative apartment, construction, SBA, commercial business, taxi medallion and consumer loans. General provisions are established against performing loans in our portfolio in amounts deemed prudent based on our qualitative analysis of the factors, including the historical loss experience, delinquency trends and local economic conditions. The national and local economies were generally considered to be in a recession from December 2007 through the middle of 2009. This resulted in increased unemployment and declining property values, although the property value declines in our market, the New York City metropolitan area, have not been as great as many other areas of the country. While the national and local economies have shown signs of improvement since the middle of 2010, improvements in unemployment have lagged until recently when the unemployment rate decreased to 6.3% at December 2014 from 7.5% at December 2013, for the New York City region, according to the New York Department of Labor. The slow improvement in the level of unemployment has had a negative effect on our loan portfolio. Non-performing loans totaled $34.2 million and $49.0 million at December 31, 2014 and 2013, respectively.   The Bank’s underwriting standards generally require a loan-to-value ratio of no more than 75% at the time the loan is originated. At December 31, 2014, the outstanding principal balance of our impaired mortgage loans was less than 41% of the estimated current value of the supporting collateral, after considering the charge-offs that have been recorded. We incurred total net charge-offs of $0.7 million and $13.3 million during the years ended December 31, 2014 and 2013, respectively.  This improvement in net charge-offs allowed us to reduce the provision for loan losses to a benefit of $6.0 million for the year ended December 31, 2014, from a provision expense of $13.9 million and $21.0 million for the years ended December 31, 2013 and 2012, respectively. Management has concluded, and the Board of Directors has concurred, that at December 31, 2014, the allowance was sufficient to absorb losses inherent in our loan portfolio.

Our determination as to the classification of our assets and the amount of our valuation allowance is subject to review by our regulators, which can require the establishment of additional general allowances or specific loss allowances or require charge-offs. Such authorities may require us to make additional provisions to the allowance based on their judgments about information available to them at the time of their examination. A policy statement provides guidance for examiners in determining whether the levels of general valuation allowances for banking institutions are adequate. The policy statement requires that if a bank’s general valuation allowance policies and procedures are deemed to be inadequate, recommendations for correcting deficiencies, including any examiner concerns regarding the level of the allowance, should be noted in the report of examination. Additional supervisory action may also be taken based on the magnitude of the observed shortcomings in the allowance process, including the materiality of any error in the reported amount of the allowance.

Management believes that our current allowance for loan losses is adequate in light of current economic conditions, the composition of our loan portfolio, the level and type of delinquent loans, our level of classified loans, charge-offs recorded and other available information and the Board of Directors concurs in this belief. At December 31, 2014, the total allowance for loan losses was $25.1 million, representing 73.40% of non-performing loans and 61.94% of non-performing assets, compared to 64.89% of non-performing loans and 59.04% of non-performing assets at December 31, 2013. We continue to monitor and, as necessary, modify the level of our allowance for loan losses in order to maintain the allowance at a level which we consider adequate to provide for probable loan losses based on available information.

Many factors may require additions to the allowance for loan losses in future periods beyond those currently revealed. These factors include further adverse changes in economic conditions, changes in interest rates and changes in the financial capacity of individual borrowers (any of which may affect the ability of borrowers to make repayments on loans), changes in the real estate market within our lending area and the value of collateral, or a review and evaluation of our loan portfolio in the future. The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraised values of collateral, national and local economic conditions, interest rates and other factors. In addition, our overall level of credit risk inherent in our loan portfolio can be affected by the loan portfolio’s composition. At December 31, 2014, multi-family residential, commercial real estate, construction and one-to-four family mixed-use property mortgage loans, totaled 82.2% of our gross loans. The greater risk associated with these loans, as well as business loans, could require us to increase our provisions for loan losses and to maintain an allowance for loan losses as a percentage of total loans that is in excess of the allowance we currently maintain.  Provisions for loan losses are charged against net income.  See “—Lending Activities” and “—Asset Quality.”

21

The following table sets forth changes in, and the balance of, our allowance for loan losses.

	At and for the years ended December 31,
(Dollars in thousands)	2014			2013			2012			2011			2010
Balance at beginning of year	$	31,776		$	31,104		$	30,344		$	27,699		$	20,324
Provision (benefit) for loan losses		(6,021	)		13,935			21,000			21,500			21,000
Loans charged-off:
Multi-family residential		(1,161	)		(3,585	)		(6,016	)		(6,807	)		(5,790	)
Commercial real estate		(325	)		(1,051	)		(2,746	)		(5,172	)		(2,685	)
One-to-four family mixed-use property		(423	)		(4,206	)		(4,286	)		(2,644	)		(2,580	)
One-to-four family residential		(103	)		(701	)		(1,583	)		(2,226	)		(236	)
Co-operative apartment		-			(108	)		(62	)		-			-
Construction		-			(2,678	)		(4,591	)		(1,088	)		(1,879	)
SBA		(49	)		(457	)		(324	)		(871	)		(925	)
Commercial business and other loans		(381	)		(2,057	)		(1,661	)		(642	)		(500	)
Total loans charged-off		(2,442	)		(14,843	)		(21,269	)		(19,450	)		(14,595	)
Recoveries:
Mortgage loans		1,515			1,407			838			523			183
SBA, commercial business and other loans		268			173			191			72			787
Total recoveries		1,783			1,580			1,029			595			970
Net charge-offs		(659	)		(13,263	)		(20,240	)		(18,855	)		(13,625	)
Balance at end of year	$	25,096		$	31,776		$	31,104		$	30,344		$	27,699
Ratio of net charge-offs during the year to average loans outstanding during the year		0.02	%		0.41	%		0.64	%		0.59	%		0.42	%
Ratio of allowance for loan losses to gross loans at end of the year		0.66	%		0.93	%		0.97	%		0.94	%		0.85	%
Ratio of allowance for loan losses to non-performing loans at the end of the year		73.40	%		64.89	%		34.62	%		25.84	%		24.71	%
Ratio of allowance for loan losses to non-performing assets at the end of the year		61.94	%		59.04	%		31.59	%		24.63	%		23.31	%

22

The following table sets forth our allocation of the allowance for loan losses to the total amount of loans in each of the categories listed at the dates indicated.  The numbers contained in the “Amount” column indicate the allowance for loan losses allocated for each particular loan category.  The numbers contained in the column entitled “Percentage of Loans in Category to Total Loans” indicate the total amount of loans in each particular category as a percentage of our loan portfolio.

	At December 31,
	2014					2013					2012					2011					2010
			Percent					Percent					Percent					Percent					Percent
			of Loans in					of Loans in					of Loans in					of Loans in					of Loans in
			Category to					Category to					Category to					Category to					Category to
Loan Category	Amount		Total loans			Amount		Total loans			Amount		Total loans			Amount		Total loans			Amount		Total loans
	(Dollars in thousands)
Mortgage loans:
Multi-family residential	$	8,827		50.64	%	$	12,084		50.02	%	$	13,001		47.62	%	$	11,267		43.28	%	$	9,007		38.41	%
Commercial real estate		4,202		16.36			4,959		14.97			5,705		16.00			5,210		18.07			4,905		20.33
One-to-four family mixed-use property		5,840		15.10			6,328		17.40			5,960		19.79			5,314		21.59			5,997		22.36
One-to-four family residential		1,690		4.94			2,079		5.66			1,999		6.18			1,649		6.86			938		7.40
Co-operative apartment		-		0.26			104		0.30			46		0.20			80		0.17			17		0.19
Construction		42		0.14			444		0.12			66		0.45			668		1.47			589		2.32
Gross mortgage loans		20,601		87.44			25,998		88.47			26,777		90.24			24,188		91.44			21,453		91.01
Non-mortgage loans:
Small Business Administration		279		0.19			458		0.23			505		0.29			987		0.44			1,303		0.54
Taxi Medallion		11		0.59			-		0.38			7		0.31			41		1.69			639		2.71
Commercial business and other		4,205		11.78			5,320		10.92			3,815		9.16			5,128		6.43			4,304		5.74
Gross non-mortgage loans		4,495		12.56			5,778		11.53			4,327		9.76			6,156		8.56			6,246		8.99
Total loans	$	25,096		100.00	%	$	31,776		100.00	%	$	31,104		100.00	%	$	30,344		100.00	%	$	27,699		100.00	%

23

Investment Activities

General.  Our investment policy, which is approved by the Board of Directors, is designed primarily to manage the interest rate sensitivity of our overall assets and liabilities, to generate a favorable return without incurring undue interest rate and credit risk, to complement our lending activities and to provide and maintain liquidity. In establishing our investment strategies, we consider our business and growth strategies, the economic environment, our interest rate risk exposure, our interest rate sensitivity “gap” position, the types of securities to be held, and other factors. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview—Management Strategy” in Item 7 of this Annual Report.

Although we have authority to invest in various types of assets, we primarily invest in mortgage-backed securities, securities issued by mutual or bond funds that invest in government and government agency securities, municipal bonds and corporate bonds. We did not hold any issues of foreign sovereign debt at December 31, 2014 and 2013.

Our Investment Committee meets quarterly to monitor investment transactions and to establish investment strategy. The Board of Directors reviews the investment policy on an annual basis and investment activity on a monthly basis.

We classify our investment securities as available for sale. We carry some of our investments under the fair value option. Unrealized gains and losses for investments carried under the fair value option are included in our Consolidated Statements of Income. Unrealized gains and losses on the remaining investment portfolio, other than unrealized credit losses considered other than temporary, are excluded from earnings and included in Accumulated Other Comprehensive Income (a separate component of equity), net of taxes. At December 31, 2014, we had $973.3 million in securities available for sale, which represented 19.17% of total assets. These securities had an aggregate market value at December 31, 2014 that was approximately 2.1 times the amount of our equity at that date.

There were no credit related OTTI charges recorded during the year ended December 31, 2014.  During 2013 we recorded OTTI charges of $1.4 million on four private issue collateralized mortgage obligations. During 2012 we recorded OTTI charges of $0.8 million on five private issue collateralized mortgage obligations. We sold these private issue collateralized mortgage obligations during 2013. As a result of the magnitude of our holdings of securities available for sale, changes in interest rates could produce significant changes in the value of such securities and could produce significant fluctuations in our operating results and equity. (See Notes 6 and 17 of Notes to Consolidated Financial Statements, included in Item 8 of this Annual Report.)

24

The table below sets forth certain information regarding the amortized cost and market values of our securities portfolio, interest-earning deposits and federal funds sold, at the dates indicated. Securities available for sale are recorded at market value. (See Notes 6 and 17 of Notes to Consolidated Financial Statements, included in Item 8 of this Annual Report.)

	At December 31,
	2014				2013				2012
	Amortized		Market		Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value		Cost		Value
	(In thousands)
Securities available for sale
Bonds and other debt securities:
U.S. government and agencies	$	-	$	-	$	-	$	-	$	31,409	$	31,513
Municipal securities		145,864		148,896		127,967		123,423		74,228		75,297
Corporate debentures		90,719		91,273		100,362		101,711		83,389		87,485
Total bonds and other debt securities		236,583		240,169		228,329		225,134		189,026		194,295
Mutual funds		21,118		21,118		21,565		21,565		21,843		21,843
Equity securities:
Common stock		864		864		888		888		718		718
Preferred stock		6,234		6,226		17,272		14,047		17,079		12,597
Total equity securities		7,098		7,090		18,160		14,935		17,797		13,315
Mortgage-backed securities:
FNMA		169,956		170,367		217,615		212,322		168,040		175,929
REMIC and CMO		504,207		505,768		494,984		489,670		453,468		474,050
FHLMC		14,505		14,639		13,297		13,290		22,562		23,202
GNMA		13,862		14,159		38,974		40,874		43,211		46,932
Total mortgage-backed securities		702,530		704,933		764,870		756,156		687,281		720,113
Total securities available for sale		967,329		973,310		1,032,924		1,017,790		915,947		949,566
Interest-earning deposits and
Federal funds sold		22,977		22,977		23,748		23,748		31,279		31,279
Total	$	990,306	$	996,287	$	1,056,672	$	1,041,538	$	947,226	$	980,845

Mortgage-backed securities. At December 31, 2014, we had $704.9 million invested in mortgage-backed securities, of which $6.3 million was invested in adjustable-rate mortgage-backed securities. The mortgage loans underlying these adjustable-rate securities generally are subject to limitations on annual and lifetime interest rate increases. We anticipate that investments in mortgage-backed securities may continue to be used in the future to supplement mortgage-lending activities. Mortgage-backed securities are more liquid than individual mortgage loans and may be used more easily to collateralize our obligations, including collateralizing of the governmental deposits of the Bank.

25

The following table sets forth our mortgage-backed securities purchases, sales and principal repayments for the years indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Balance at beginning of year	$	756,156		$	720,113		$	747,288
Purchases of mortgage-backed securities		125,897			357,022			141,514
Amortization of unearned premium, net of accretion of unearned discount		(2,699	)		(3,577	)		(3,269	)
Net change in unrealized gains on mortgage-backed securities available for sale		11,117			(41,546	)		6,591
Net realized gains (losses) recorded on mortgage-backed securities carried at fair value		84			(589	)		(381	)
Net change in interest due on securities carried at fair value		(8	)		(62	)		(51	)
Sales of mortgage-backed securities		(85,021	)		(126,848	)		(12,590	)
Other-than-temporary impairment charges		-			(1,419	)		(776	)
Principal repayments received on mortgage-backed securities		(100,593	)		(146,938	)		(158,213	)
Net increase (decrease) in mortgage-backed securities		(51,223	)		36,043			(27,175	)
Balance at end of year	$	704,933		$	756,156		$	720,113

While mortgage-backed securities carry a reduced credit risk as compared to whole loans, such securities remain subject to the risk that a fluctuating interest rate environment, along with other factors such as the geographic distribution of the underlying mortgage loans, may alter the prepayment rate of such mortgage loans and so affect both the prepayment speed and value of such securities. We do not own any derivative instruments that are extremely sensitive to changes in interest rates.

26

The table below sets forth certain information regarding the amortized cost, fair value, annualized weighted average yields and maturities of our investment in debt and equity securities and interest-earning deposits at December 31, 2014. The stratification of balances is based on stated maturities. Equity securities are shown as immediately maturing, except for preferred stocks with stated redemption dates, which are shown in the period they are scheduled to be redeemed. Assumptions for repayments and prepayments are not reflected for mortgage-backed securities. We carry these investments at their estimated fair value in the consolidated financial statements.

	One year or Less					One to Five Years					Five to Ten Years					More than Ten Years					Total Securities
	Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Amortized Cost		Weighted Average Yield			Average Remaining Years to Maturity		Amortized Cost		Estimated Fair Value		Weighted Average Yield
	(Dollars in thousands)
Securities available for sale
Bonds and other debt securities:
Municipal securities	$	7,430		0.54	%	$	80		1.30	%	$	18,620		4.30	%	$	119,734		4.49	%		16.21	$	145,864	$	148,896		4.26	%
Corporate debentures		4,997		0.73			35,722		1.96			50,000		1.66			-		-			5.74		90,719		91,273		1.73
Total bonds and other debt securities		12,427		0.62			35,802		1.96			68,620		2.38			119,734		4.49			12.20		236,583		240,169		3.29
Mutual funds		21,118		1.76			-		-			-		-			-		-			N/A		21,118		21,118		1.76
Equity securities:
Common stock		-		-			-		-			-		-			864		3.57			N/A		864		864		3.57
Preferred stock		-		-			-		-			-		-			6,234		7.07			N/A		6,234		6,226		7.07
Total equity securities		-		-			-		-			-		-			7,098		6.64			N/A		7,098		7,090		6.64
Mortgage-backed securities:
FNMA		-		-			4,985		1.97			78,177		2.68			86,794		2.97			12.37		169,956		170,367		2.81
REMIC and CMO		-		-			95		3.51			14,684		4.44			489,428		2.91			23.72		504,207		505,768		2.95
FHLMC		-		-			9		2.18			2,035		4.64			12,461		2.54			11.65		14,505		14,639		2.83
GNMA		-		-			-		-			-		-			13,862		3.44			16.99		13,862		14,159		3.44
Total mortgage-backed securities		-		-			5,089		2.00			94,896		2.99			602,545		2.92			20.59		702,530		704,933		2.93
Interest-earning deposits		22,977		0.25			-		-			-		-			-		-			N/A		22,977		22,977		0.25
Total	$	56,522		0.89	%	$	40,891		1.96	%	$	163,516		2.74	%	$	729,377		3.22	%		18.48	$	990,306	$	996,287		2.95	%

27

Sources of Funds

General.  Deposits, FHLB-NY borrowings, repurchase agreements, principal and interest payments on loans, mortgage-backed and other securities, and proceeds from sales of loans and securities are our primary sources of funds for lending, investing and other general purposes.

Deposits.  We offer a variety of deposit accounts having a range of interest rates and terms.  Our deposits primarily consist of savings accounts, money market accounts, demand accounts, NOW accounts and certificates of deposit. We have a relatively stable retail deposit base drawn from our market area through our 17 full-service offices. We seek to retain existing depositor relationships by offering quality service and competitive interest rates, while keeping deposit growth within reasonable limits. It is management’s intention to balance its goal to maintain competitive interest rates on deposits while seeking to manage its cost of funds to finance its strategies.

In addition to our full-service offices we have an internet branch “iGObanking.com®”, which currently offers savings accounts, money market accounts, checking accounts, and certificates of deposit. This allows us to compete on a national scale without the geographical constraints of physical locations. Since the number of U.S. households with accounts at Web-only banks has grown, our strategy was to join the market place by creating a branch that offers clients the simplicity and flexibility of a virtual online bank, which is a division of a stable, traditional bank that was established in 1929.  At December 31, 2014 and 2013, total deposits for the internet branch were $281.6 million and $293.3 million, respectively.

We have a government banking division, which prior to the Merger operated as the Commercial Bank, a New York State-chartered commercial bank, which provided banking services to public municipalities, including counties, cities, towns, villages, school districts, libraries, fire districts, and the various courts throughout the New York City metropolitan area as an additional source of deposits. At December 31, 2014 and 2013, total deposits in our government banking division totaled $891.9 million and $867.1 million, respectively.

Our core deposits, consisting of savings accounts, NOW accounts, money market accounts, and non-interest bearing demand accounts, are typically more stable and lower costing than other sources of funding.  However, the flow of deposits into a particular type of account is influenced significantly by general economic conditions, changes in prevailing money market and other interest rates, and competition. We experienced an increase in our Due to depositors’ during 2014 of $272.9 million. During the year ended December 31, 2014, the cost of Due to depositors’ decreased 12 basis points to 0.97% from 1.09% for the year ended December 31, 2013.  This decrease in the cost of deposits is primarily attributable to the Bank’s reducing the rates it pays on its deposit products. While we are unable to predict the direction of future interest rate changes, if interest rates rise during 2015, the result could be an increase in our cost of deposits, which could reduce our net interest margin. Similarly, if interest rates remain at their current level or decline in 2015, we could see a decline in our cost of deposits, which could increase our net interest margin.

Included in deposits are certificates of deposit with balances of $100,000 or more (excluding brokered deposits issued in $1,000.00 amounts under a master certificate of deposit) totaling $403.1 million, $335.4 million and $393.7 million at December 31, 2014, 2013 and 2012, respectively.

We utilize brokered deposits as an additional funding source and to assist in the management of our interest rate risk. We have obtained brokered certificates of deposit when the interest rate on these deposits is below the prevailing interest rate for non-brokered certificates of deposit with similar maturities in our market, or when obtaining them allowed us to extend the maturities of our deposits at favorable rates compared to borrowing funds with similar maturities, when we are seeking to extend the maturities of our funding to assist in the management of our interest rate risk. Brokered certificates of deposit provide a large deposit for us at a lower operating cost as compared to non-brokered certificates of deposit since we only have one account to maintain versus several accounts with multiple interest and maturity checks. The Depository Trust Company is used as the clearing house, maintaining each deposit under the name of CEDE & Co. These deposits are transferable just like a stock or bond investment and the customer can open the account with only a phone call, just like buying a stock or bond. Unlike non-brokered certificates of deposit, where the deposit amount can be withdrawn with a penalty for any reason, including increasing interest rates, a brokered certificate of deposit can only be withdrawn in the event of the death, or court declared mental incompetence, of the depositor. This allows us to better manage the maturity of our deposits and our interest rate risk. We also utilized brokers to obtain money market account deposits. The rate we pay on brokered money market accounts is the same or below the rate we pay on non-brokered money market accounts, and the rate is agreed to in a contract between the Bank and the broker. These accounts are similar to brokered certificates of deposit accounts in that we only maintain one account for the total deposit per broker, with the broker maintaining the detailed records of each depositor.

28

We also offer access to FDIC insurance coverage in excess of $250,000 through a Certificate of Deposit Account Registry Service (“CDARS®”) and through an Insured Cash Sweep service (“ICS”). CDARS® and ICS are deposit placement services. These networks arrange for placement of funds into certificate of deposit accounts or money market accounts issued by other member banks of the network in increments of less than $250,000 to ensure that both principal and interest are eligible for full FDIC deposit insurance. This allows us to accept deposits in excess of $250,000 from a depositor, and place the deposits through the network to other member banks to provide full FDIC deposit insurance coverage. We may receive deposits from other member banks in exchange for the deposits we place into the network. We may also obtain deposits from other network member banks without placing deposits into the network. We will obtain deposits in this manner primarily as a short-term funding source. We also can place deposits with other member banks without receiving deposits from other member banks. Depositors are allowed to withdraw funds, with a penalty, from these accounts at one or more of the member banks that hold the deposits. Additionally, during 2014 we shifted approximately $94.0 million in Government NOW deposits to an ICS brokered money market product which does not require us to provide collateral. This will allow us to invest our funds in higher yielding assets.

We also utilize brokers to obtain money market account deposits. These accounts are similar to brokered certificate of deposit accounts in that we only maintain one account for the total deposit per broker, with the broker maintaining the detailed records of each depositor.

Brokered deposits and funds obtained through the CDARS® and ICS networks are classified as brokered deposits for financial reporting purposes. At December 31, 2014, we had $763.9 million classified as brokered deposits, with $583.7 million in brokered certificates of deposit and $180.2 million in brokered money market accounts. The brokered certificates of deposit include $9.3 million obtained through the CDARS® network and the brokered money market accounts include $107.0 million obtained through the ICS network.

29

The following table sets forth the distribution of our deposit accounts at the dates indicated and the weighted average nominal interest rates on each category of deposits presented.

	At December 31,
	2014								2013								2012
	Amount		Percent of Total Deposits			Weighted Average Nominal Rate			Amount		Percent of Total Deposits			Weighted Average Nominal Rate			Amount		Percent of Total Deposits			Weighted Average Nominal Rate
	(Dollars in thousands)
Savings accounts	$	261,942		7.47	%		0.38	%	$	265,003		8.20	%		0.19	%	$	288,398		9.56	%		0.19	%
NOW accounts		1,359,057		38.74			0.45			1,416,774		43.83			0.50			1,136,599		37.70			0.57
Demand accounts		255,834		7.29			-			197,343		6.10			-			155,789		5.17			-
Mortgagors' escrow deposits		35,679		1.02			0.09			32,798		1.01			0.08			32,560		1.08			0.09
Total		1,912,512		54.51			0.37			1,911,918		59.14			0.40			1,613,346		53.51			0.44
Money market accounts (8)		290,263		8.27			0.32			199,907		6.18			0.21			148,618		4.93			0.15
Certificate of deposit accounts with original maturities of:
Less than 6 Months (2)		7,059		0.20			0.10			10,116		0.31			0.17			58,705		1.95			0.22
6 to less than 12 Months (3)		82,966		2.36			0.80			20,671		0.64			0.13			25,147		0.83			0.13
12 to less than 30 Months (4)		275,828		7.86			0.89			246,416		7.62			0.87			319,487		10.60			0.94
30 to less than 48 Months (5)		198,290		5.65			1.08			132,965		4.11			1.18			155,142		5.15			1.79
48 to less than 72 Months (6)		622,908		17.75			2.06			585,203		18.10			2.50			565,592		18.76			2.71
72 Months or more (7)		118,772		3.39			2.88			125,584		3.88			3.23			129,156		4.28			3.27
Total certificate of deposit accounts		1,305,823		37.22			1.65			1,120,955		34.67			2.01			1,253,229		41.56			2.04
Total deposits (1)	$	3,508,598		100.00	%		0.84	%	$	3,232,780		100.00	%		0.94	%	$	3,015,193		100.00	%		1.09	%

(1) Included in the above balances are IRA and Keogh deposits totaling $91.0 million, $117.4 million and $144.4 million at December 31, 2014, 2013 and 2012, respectively.

(2) Includes brokered deposits of $3.0 million, $4.8 million and $53.0 million at December 31, 2014, 2013 and 2012, respectively.

(3) Includes brokered deposits of $5.7 million, $0.8 million and $0.8 million at December 31, 2014, 2013 and 2012, respectively.

(4) Includes brokered deposits of $85.9 million, $10.0 million and $20.9 million at December 31, 2014, 2013 and 2012, respectively.

(5) Includes brokered deposits of $145.2 million, $105.4 million and $70.0 million at December 31, 2014, 2013 and 2012, respectively.

(6) Includes brokered deposits of $271.4 million, $262.8 million and $314.6 million at December 31, 2014, 2013 and 2012, respectively.

(7) Includes brokered deposits of $72.4 million, $63.1 million and $62.9 million at December 31, 2014, 2013 and 2012, respectively.

(8) Includes brokered deposits of $180.2 million and $70.5 million at December 31, 2014 and 2013.

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The following table presents by various rate categories, the amount of time deposit accounts outstanding at the dates indicated, and the years to maturity of the certificate accounts outstanding at December 31, 2014.

								At December 31, 2014
		At December 31,						Within		One to
		2014		2013		2012		One Year		Three Years		Thereafter		Total
		(In thousands)
Interest rate:
1.99% or less	(1)	$	817,100	$	543,759	$	571,109	$	284,427	$	411,398	$	121,275	$	817,100
2.00% to 2.99%	(2)		301,445		212,971		279,698		32,106		65,419		203,920		301,445
3.00% to 3.99%	(3)		184,172		344,884		370,570		135,657		22,953		25,562		184,172
4.00% to 4.99%			14		308		10,308		14		-		-		14
5.00% to 5.99%			3,092		19,033		21,544		3,092		-		-		3,092
Total		$	1,305,823	$	1,120,955	$	1,253,229	$	455,296	$	499,770	$	350,757	$	1,305,823

(1) Includes brokered deposits of $435.3 million, $204.4.million and $221.5 million at December 31, 2014, 2013 and 2012, respectively.

(2) Includes brokered deposits of $83.1 million, $108.6 million and $152.1 million at December 31, 2014, 2013 and 2012, respectively.

(3) Includes brokered deposits of $65.3 million, $133.9 million and $148.5 million at December 31, 2014, 2013 and 2012, respectively.

The following table presents by remaining maturity categories the amount of certificate of deposit accounts with balances of $100,000 or more at December 31, 2014 and their annualized weighted average interest rates.

	Amount		Weighted Average Rate
	(Dollars in thousands)
Maturity Period:
Three months or less	$	70,524		1.75	%
Over three through six months		37,546		1.92
Over six through 12 months		46,594		1.16
Over 12 months		248,480		1.87
Total	$	403,144		1.77	%

The above table does not include brokered deposits issued in $1,000.00 amounts under a master certificate of deposit totaling $582.3 million with a weighted average rate of 1.52%.

The following table presents the deposit activity, including mortgagors’ escrow deposits, for the periods indicated.

	For the year ended December 31,
	2014		2013		2012
	(In thousands)
Net deposits (withdrawals)	$	244,830	$	184,470	$	(172,519	)
Amortization of premiums, net		944		1,080		1,085
Interest on deposits		30,044		32,037		40,382
Net increase (decrease) in deposits	$	275,818	$	217,587	$	(131,052	)

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The following table sets forth the distribution of our average deposit accounts for the years indicated, the percentage of total deposit portfolio, and the average interest cost of each deposit category presented.  Average balances for all years shown are derived from daily balances.

	At December 31,
	2014								2013								2012
	Average Balance		Percent of Total Deposits			Average Cost			Average Balance		Percent of Total Deposits			Average Cost			Average Balance		Percent of Total Deposits			Average Cost
	(Dollars in thousands)
Savings accounts	$	258,243		7.70	%		0.23	%	$	274,791		8.73	%		0.19	%	$	317,095		10.11	%		0.22	%
NOW accounts		1,390,899		41.47			0.45			1,291,861		41.04			0.52			1,025,116		32.67			0.61
Demand accounts		211,389		6.30			-			169,190		5.37			-			134,166		4.28			-
Mortgagors' escrow deposits		47,876		1.43			0.28			46,217		1.47			0.08			41,973		1.34			0.09
Total		1,908,407		56.90			0.37			1,782,059		56.61			0.41			1,518,350		48.40			0.46
Money market accounts		245,752		7.33			0.27			180,211		5.72			0.16			175,817		5.60			0.23
Certificate of deposit accounts		1,199,849		35.77			1.87			1,185,696		37.67			2.06			1,443,195		46.00			2.29
Total deposits	$	3,354,008		100.00	%		0.90	%	$	3,147,966		100.00	%		1.02	%	$	3,137,362		100.00	%		1.29	%

Borrowings.  Although deposits are our primary source of funds, we also use borrowings as an alternative and cost effective source of funds for lending, investing and other general purposes. The Bank is a member of, and is eligible to obtain advances from, the FHLB-NY. Such advances generally are secured by a blanket lien against the Bank’s mortgage portfolio and the Bank’s investment in the stock of the FHLB-NY. In addition, the Bank may pledge mortgage-backed securities to obtain advances from the FHLB-NY. See “— Regulation — Federal Home Loan Bank System.” The maximum amount that the FHLB-NY will advance for purposes other than for meeting withdrawals fluctuates from time to time in accordance with the policies of the FHLB-NY. The Bank may also enter into repurchase agreements with broker-dealers and the FHLB-NY. These agreements are recorded as financing transactions and the obligations to repurchase are reflected as a liability in our consolidated financial statements. In addition, we issued junior subordinated debentures with a total par of $61.9 million in June and July 2007. These junior subordinated debentures are carried at fair value in the Consolidated Statement of Financial Condition. The average cost of borrowings was 2.49%, 2.39% and 2.98% for the years ended December 31, 2014, 2013 and 2012, respectively. The average balances of borrowings were $993.8 million, $953.2 million and $767.6 million for the same years, respectively.

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The following table sets forth certain information regarding our borrowings at or for the periods ended on the dates indicated.

	At or for the years ended December 31,
	2014			2013			2012
	(Dollars in thousands)
Securities Sold with the Agreement to Repurchase
Average balance outstanding	$	137,824		$	172,944		$	185,300
Maximum amount outstanding at any month end during the period		155,300			185,300			185,300
Balance outstanding at the end of period		116,000			155,300			185,300
Weighted average interest rate during the period		5.37	%		3.42	%		3.62	%
Weighted average interest rate at end of period		3.18			3.41			3.47
FHLB-NY Advances
Average balance outstanding	$	826,132		$	754,305		$	557,147
Maximum amount outstanding at any month end during the period		936,813			864,864			739,183
Balance outstanding at the end of period		911,721			827,252			739,183
Weighted average interest rate during the period		2.03	%		2.03	%		2.33	%
Weighted average interest rate at end of period		1.44			1.48			1.72
Other Borrowings
Average balance outstanding	$	29,834		$	25,939		$	25,191
Maximum amount outstanding at any month end during the period		30,352			29,570			26,386
Balance outstanding at the end of period		28,771			29,570			23,922
Weighted average interest rate during the period		5.30	%		6.17	%		12.65	%
Weighted average interest rate at end of period		5.96			5.67			6.92
Total Borrowings
Average balance outstanding	$	993,790		$	953,188		$	767,638
Maximum amount outstanding at any month end during the period		1,112,201			1,067,170			948,405
Balance outstanding at the end of period		1,056,492			1,012,122			948,405
Weighted average interest rate during the period		2.49	%		2.39	%		2.98	%
Weighted average interest rate at end of period		1.75			1.90			2.21

Subsidiary Activities

At December 31, 2014, Flushing Financial Corporation had four wholly owned subsidiaries: the Bank and the Trusts. In addition, the Bank had three wholly owned subsidiaries: FSB Properties Inc. (“Properties”), Flushing Preferred Funding Corporation (“FPFC”), and Flushing Service Corporation.

(a)           Properties, which is incorporated in the State of New York, was formed in 1976 under the Savings Bank’s New York State leeway investment authority.  The original purpose of Properties was to engage in joint venture real estate equity investments.  The Savings Bank discontinued these activities in 1986.  The last joint venture in which Properties was a partner was dissolved in 1989. The last remaining property acquired by the dissolution of these joint ventures was disposed of in 1998. Properties is currently used to hold title to real estate owned that is obtained via foreclosure.

(b)           FPFC, which is incorporated in the State of Delaware, was formed in 1997 as a real estate investment trust for the purpose of acquiring, holding and managing real estate mortgage assets. FPFC also provides an additional vehicle for access by the Company to the capital markets for future opportunities.

(c)           Flushing Service Corporation, which is incorporated in the State of New York, was formed in 1998 to market insurance products and mutual funds.

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Personnel

At December 31, 2014, we had 407 full-time employees and 17 part-time employees. None of our employees are represented by a collective bargaining unit, and we consider our relationship with our employees to be good. At the present time, Flushing Financial Corporation only employs certain officers of the Bank. These employees do not receive any extra compensation as officers of Flushing Financial Corporation.

Omnibus Incentive Plan

The 2014 Omnibus Incentive Plan (“2014 Omnibus Plan”) became effective on May 20, 2014 after adoption by the Board of Directors and approval by the stockholders. The 2014 Omnibus Plan authorizes the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) to grant a variety of equity compensation awards as well as long-term and annual cash incentive awards, all of which can, but need not, be structured so as to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).  The 2014 Omnibus Plan authorizes the issuance of 1,100,000 shares. To the extent that an award under the 2014 Omnibus Plan is cancelled, expired, forfeited, settled in cash, settled by issuance of fewer shares than the number underlying the award, or otherwise terminated without delivery of shares to a participant in payment of the exercise price or taxes relating to an award, the shares retained by or returned to the Company will be available for future issuance under the 2014 Omnibus Plan. No further awards may be granted under the Company’s 2005 Omnibus Incentive Plan, 1996 Stock Option Incentive Plan, and 1996 Restricted Stock Incentive Plan. At December 31, 2014, there were 1,097,200 shares available for delivery in connection with awards under the 2014 Omnibus Plan.

For additional information concerning this plan, see “Note 11 of Notes to Consolidated Financial Statements” in Item 8 of this Annual Report.

FEDERAL, STATE AND LOCAL TAXATION

The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to the Company.

Federal Taxation

General.  We report our income using a calendar year and the accrual method of accounting.  We are subject to the federal tax laws and regulations which apply to corporations generally, and, since the enactment of the Small Business Job Protection Act of 1996 (the “Act”), those laws and regulations governing the Bank’s deductions for bad debts, described below.

Bad Debt Reserves.  Prior to the enactment of the Act, which was signed into law on August 20, 1996, savings institutions which met certain definitional tests primarily relating to their assets and the nature of their business (“qualifying thrifts”), such as the Savings Bank, were allowed deductions for bad debts under methods more favorable than those granted to other taxpayers. Qualifying thrifts could compute deductions for bad debts using either the specific charge off method of Section 166 of the Internal Revenue Code (the “Code”) or the reserve method of Section 593 of the Code. Section 1616(a) of the Act repealed the Section 593 reserve method of accounting for bad debts by qualifying thrifts, effective for taxable years beginning after 1995. Qualifying thrifts that are treated as large banks, such as the Savings Bank, are required to use the specific charge off method, pursuant to which the amount of any debt may be deducted only as it actually becomes wholly or partially worthless.

Distributions. To the extent that the Bank makes “non-dividend distributions” to stockholders that are considered to result in distributions from its pre-1988 reserves or the supplemental reserve for losses on loans (“excess distributions”), then an amount based on the amount distributed will be included in the Bank’s taxable income.  Non-dividend distributions include distributions in excess of the Bank’s current and post-1951 accumulated earnings and profits, as calculated for federal income tax purposes, distributions in redemption of stock and distributions in partial or complete liquidation.  The amount of additional taxable income resulting from an excess distribution is an amount that when reduced by the tax attributable to the income is equal to the amount of the excess distribution.  Thus, slightly more than one and one-half times the amount of the excess distribution made would be includable in gross income for federal income tax purposes, assuming a 35% federal corporate income tax rate.  See “Regulation ¾ Restrictions on Dividends and Capital Distributions” for limits on the payment of dividends by the Bank.  The Bank does not intend to pay dividends or make non-dividend distributions described above that would result in a recapture of any portion of its pre-1988 bad debt reserves.

Corporate Alternative Minimum Tax.  The Code imposes an alternative minimum tax on corporations equal to the excess, if any, of 20% of alternative minimum taxable income (“AMTI”) over a corporation’s regular federal income tax liability.  AMTI is equal to taxable income with certain adjustments.  Generally, only 90% of AMTI can be offset by net operating loss carrybacks and carryforwards.

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State and Local Taxation

New York State and New York City Taxation.  We are subject to the New York State Franchise Tax on Banking Corporations in an annual amount equal to the greater of (1) 7.1% of “entire net income” allocable to New York State during the taxable year or (2) the applicable alternative minimum tax.  The alternative minimum tax is generally the greater of (a) 0.01% of the value of assets allocable to New York State with certain modifications, (b) 3% of “alternative entire net income” allocable to New York State or (c) $250.  Entire net income is similar to federal taxable income, subject to certain modifications, including that net operating losses arising during any taxable year prior to January 1, 2001 cannot be carried back or carried forward, and net operating losses arising during any taxable year beginning on or after January 1, 2001 cannot be carried back. Alternative entire net income is equal to entire net income without certain deductions that are allowable in the calculation of entire net income.  We are also subject to a similarly calculated New York City tax of 9% on income allocated to New York City.  For New York City tax purposes, entire net income is similar to federal taxable income, subject to certain modifications, including that net operating losses arising during any taxable year prior to January 1, 2009 cannot be carried back or carried forward, and net operating losses arising during any taxable year beginning on or after January 1, 2009 cannot be carried back and similar alternative taxes.  In addition, we are subject to a tax surcharge at a rate of 17% of the New York State Franchise Tax that is attributable to business activity carried on within the Metropolitan Commuter Transportation District (“MTA surcharge”).

Notwithstanding the repeal of the federal income tax provisions permitting bad debt deductions under the reserve method, New York State had enacted legislation maintaining the preferential treatment of additional loss reserves for qualifying real property and non-qualifying loans of qualifying thrifts for both New York State and New York City tax purposes.  Calculation of the amount of additions to reserves for qualifying real property loans was limited to the larger of the amount derived by the percentage of taxable income method or the experience method. For these purposes, the applicable percentage to calculate the bad debt deduction under the percentage of taxable income method was 32% of taxable income, reduced by additions to reserves for non-qualifying loans, except that the amount of the addition to the reserve could not exceed the amount necessary to increase the balance of the reserve for losses on qualifying real property loans at the close of the taxable year to 6% of the balance of the qualifying real property loans outstanding at the end of the taxable year. Under the experience method, the maximum addition to a loan reserve generally equaled the amount necessary to increase the balance of the bad debt reserve at the close of the taxable year to the greater of (1) the amount that bears the same ratio to loans outstanding at the close of the taxable year as the total net bad debts sustained during the current and five preceding taxable years bears to the sum of the loans outstanding at the close of those six years, or (2) the balance of the bad debt reserve at the close of the “base year,” or, if the amount of loans outstanding has declined since the base year, the amount which bears the same ratio to the amount of loans outstanding at the close of the taxable year as the balance of the reserve at the close of the base year. For these purposes, the “base year” was the last taxable year beginning before 1988. The amount of additions to reserves for non-qualifying loans was computed under the experience method. In no event could the additions to reserves for qualifying real property loans be greater than the larger of the amount determined under the experience method or the amount which, when added to the additions to reserves for non-qualifying loans, equal the amount by which 12% of the total deposits or withdrawable accounts of depositors of the Savings Bank at the close of the taxable year exceeded the sum of the Savings Bank’s surplus, undivided profits and reserves at the beginning of such year.

In September 2010, the New York State legislature changed New York State and City tax law for thrifts, such as the Savings Bank, by eliminating the percentage of taxable income method for determining bad debt deductions for taxable years beginning on or after January 1, 2010. This change in the New York State and City tax law for thrifts did not require the recapture of tax bad debt reserves previously established, and eliminated the requirement to recapture tax bad debt reserves if a thrift failed to meet the definition of a thrift institution under New York State and City tax law.

The Savings Bank had historically reported in its New York State and City income tax returns a deduction for bad debts based on the amount allowed under the percentage of taxable income method. This amount had historically exceeded actual bad debts incurred by the Savings Bank. Since the Savings Bank has consistently stated its intention to convert to a more “commercial like” bank, which would have previously required the Savings Bank to recapture this excess bad debt reserve if it failed to meet the definition of a thrift under the New York State and City tax law, the Savings Bank had, in prior periods, recorded the tax liability related to the possible recapture of the excess tax bad debt reserve. As a result of the legislation passed by the New York State legislature, this tax liability will no longer be required to be recaptured. As a result, the Savings Bank reversed approximately $5.5 million of net tax liabilities through income during the year ended December 31, 2010.

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In March 2014, the New York State legislature changed New York State tax law, eliminating the separate bank tax section of the tax code, which results in all corporations being taxed in the same manner. The changes to the tax law are effective for tax years beginning on or after January 1, 2015. The most significant changes in the new tax law include:

The existing corporate franchise tax rate of 7.1% is reduced to 6.5% effective January 1, 2016.

All corporations will calculate tax on the following three bases: business income base, capital base, and fixed dollar minimum base; the highest tax is paid.

The MTA surcharge is increased to 25.6% effective for years beginning on or after January 1, 2015 and before January 1, 2016 with adjustments in rates at the discretion of the Commissioner of Taxation.

The capital base tax will be completely phased out by 2021.

Apportionment of income to New York State will be based on a single receipts factor.

Repeals the existing combined reporting standard, and requires unitary combined reporting.

New Jersey State Taxation.  The Bank is required to pay New Jersey State income tax based on the percentage of receipts from activity in New Jersey.

Delaware State Taxation.  As a Delaware holding company not earning income in Delaware, we are exempt from Delaware corporate income tax but are required to file an annual report with and pay an annual franchise tax to the State of Delaware.

REGULATION

General

The Bank is a New York State-chartered commercial bank and its deposit accounts are insured under the Deposit Insurance Fund (the “DIF”) of the Federal Deposit Insurance Corporation (the “FDIC”) up to applicable legal limits. The Bank is subject to extensive regulation and supervision by the NYDFS, as its chartering agency, by the FDIC, as its insurer of deposits, and by the Consumer Financial Protection Bureau (the “CFPB”), which was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in 2011 to implement and enforce consumer protection laws applying to banks. The Bank must file reports with the NYDFS, the FDIC, and the CFPB concerning its activities and financial condition, in addition to obtaining regulatory approvals prior to entering into certain transactions such as mergers with, or acquisitions of, other depository institutions. Furthermore, the Bank is periodically examined by the NYDFS and the FDIC to assess compliance with various regulatory requirements, including safety and soundness considerations. This regulation and supervision establishes a comprehensive framework of activities in which a commercial bank can engage, and is intended primarily for the protection of the insurance fund and depositors. The regulatory structure also gives the regulatory authorities extensive discretion in connection with its supervisory and enforcement activities and examination policies, including policies with respect to the classification of assets and the establishment of adequate loan loss allowances for regulatory purposes. Any change in such regulation, whether by the NYDFS, the FDIC, or through legislation, could have a material adverse impact on the Company, the Bank and its operations, and the Company’s shareholders.

The Company is required to file certain reports under, and otherwise comply with, the rules and regulations of the Federal Reserve Board of Governors (the “FRB”), the FDIC, the NYDFS, and the Securities and Exchange Commission (the “SEC”) under federal securities laws. In addition, the FRB periodically examines the Company. Certain of the regulatory requirements applicable to the Bank and the Company are referred to below or elsewhere herein. However, such discussion is not meant to be a complete explanation of all laws and regulations and is qualified in its entirety by reference to the actual laws and regulations.

The Dodd-Frank Act

The Dodd-Frank Act has significantly changed the current bank regulatory structure and will continue to affect, into the immediate future, the lending and investment activities and general operations of depository institutions and its holding companies.  In addition to creating the CFPB, the Dodd-Frank Act requires the FRB to establish minimum consolidated capital requirements for bank holding companies that are as stringent as those required for insured depository institutions; the components of Tier 1 capital will be restricted to capital instruments that are currently considered to be Tier 1 capital for insured depository institutions. In addition, the proceeds of trust preferred securities will be excluded from Tier 1 capital unless (i) such securities are issued by bank holding companies with assets of less than $500 million, or (ii) such securities were issued prior to May 19, 2010 by bank or savings and loan holding companies with assets of less than $15 billion. The Dodd-Frank Act created a new supervisory structure for oversight of the U.S. financial system, including the establishment of a new council of regulators, the Financial Stability Oversight Council, to monitor and address systemic risks to the financial system. Non-bank financial companies that are deemed to be significant to the stability of the U.S. financial system and all bank holding companies with $50 billion or more in total consolidated assets will be subject to heightened supervision and regulation. The FRB will implement prudential requirements and prompt corrective action procedures for such companies.

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The Dodd-Frank Act made many additional changes in banking regulation, including: authorizing depository institutions, for the first time, to pay interest on business checking accounts; requiring originators of securitized loans to retain a percentage of the risk for transferred loans; establishing regulatory rate-setting for certain debit card interchange fees; and establishing a number of reforms for mortgage lending and consumer protection.

The Dodd-Frank Act also broadened the base for FDIC insurance assessments. The FDIC was required to promulgate rules revising its assessment system so that it is based not on deposits, but on the average consolidated total assets less the tangible equity capital of an insured institution. That rule took effect April 1, 2011. The Dodd-Frank Act also permanently increased the maximum amount of deposit insurance for banks, savings institutions, and credit unions to $250,000 per depositor, retroactive to January 1, 2008, and provided non-interest-bearing transaction accounts with unlimited deposit insurance through December 31, 2012.

Many of the provisions of the Dodd-Frank Act are not yet effective. The Dodd-Frank Act requires various federal agencies to promulgate numerous and extensive implementing regulations over the next several years. Although it is therefore difficult to predict at this time what impact the Dodd-Frank Act and the implementing regulations will have on the Company and the Bank, they may have a material impact on operations through, among other things, heightened regulatory supervision and increased compliance costs.

Basel III

In the summer of 2012, our primary federal regulators published two notices of proposed rulemaking (“NPRs”) that would have substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions, including the Company and the Bank, compared to the then current U.S. risk-based capital rules, which are based on the international capital accords of the Basel Committee on Banking Supervision, which are generally referred to as “Basel I.”

During July 2013, our primary federal regulators issued revised NPRs that will revise and replace the agencies' current capital rules. The NPRs include numerous revisions to the existing capital regulations, including, but not limited to, the following:

· Revises the definition of regulatory capital components and related calculations.

· Adds a new common equity tier 1 capital ratio.

· Increases the minimum tier 1 capital ratio requirement from four percent to six percent.

· Incorporates the revised regulatory capital requirements into the Prompt Corrective Action framework.

· Implements a new capital conservation buffer that would limit payment of capital distributions and certain discretionary bonus payments to executive officers and key risk takers if the banking organization does not hold certain amounts of common equity tier 1 capital in addition to those needed to meet its minimum risk-based capital requirements.

· Provides a transition period for several aspects of the proposed rule: the new minimum capital ratio requirements, the capital conservation buffer, and the regulatory capital adjustments and deductions.

· Increases capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments.

· Removes references to credit ratings consistent with Section 939A of the Dodd-Frank Act.

· Establishes due diligence requirements for securitization exposures.

The capital regulations were effective January 1, 2015 for bank holding companies and banks with less than $15 billion in total assets, such as our Company and Bank. Based on our preliminary assessment of the NPRs, we believe we will see an increase in our total risk-weighted assets. However, the Company and the Bank, based on our preliminary assessment, would meet the requirements of the NPRs and will continue to be considered well-capitalized.

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Volcker Rule

On December 10, 2013, our primary federal regulators adopted Section 619 of the Dodd-Frank Act, commonly referred to as the “Volcker Rule,” which prohibits insured depository institutions from engaging in short-term proprietary trading of certain securities, derivatives and other financial instruments for the firm’s own account, subject to certain exemptions, including market making and risk-mitigating hedging. The Volcker Rule also imposes limits on banking entities’ investments in, and other relationships with, hedge funds and private equity funds.

The rule as adopted prohibited banking entities from owning collateralized debt obligations backed primarily by trust preferred securities (“TruPS CDOs”) after July 21, 2015.  At December 31, 2014, the Company did not hold any TruPs CDOs.

New York State Law

The Bank derives its lending, investment, and other authority primarily from the applicable provisions of New York State Banking Law and the regulations of the NYDFS, as limited by FDIC regulations. Under these laws and regulations, banks, including the Bank, may invest in real estate mortgages, consumer and commercial loans, certain types of debt securities (including certain corporate debt securities, and obligations of federal, state, and local governments and agencies), certain types of corporate equity securities, and certain other assets. The lending powers of New York State-chartered commercial banks are not subject to percentage-of-assets or capital limitations, although there are limits applicable to loans to individual borrowers.

The exercise by an FDIC-insured commercial bank of the lending and investment powers under New York State Banking Law is limited by FDIC regulations and other federal laws and regulations. In particular, the applicable provisions of New York State Banking Law and regulations governing the investment authority and activities of an FDIC-insured state-chartered savings bank and commercial bank have been effectively limited by the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and the FDIC regulations issued pursuant thereto.

With certain limited exceptions, a New York State-chartered commercial bank may not make loans or extend credit for commercial, corporate, or business purposes (including lease financing) to a single borrower, the aggregate amount of which would be in excess of 15% of the bank’s net worth or up to 25% for loans secured by collateral having an ascertainable market value at least equal to the excess of such loans over the bank’s net worth. The Bank currently complies with all applicable loans-to-one-borrower limitations.  At December 31, 2014, the Bank’s largest aggregate amount of loans to one borrower was $66.7 million, all of which were performing according to their terms.  See “— General — Lending Activities.”

Under New York State Banking Law, New York State-chartered stock-form commercial banks may declare and pay dividends out of its net profits, unless there is an impairment of capital, but approval of the NYDFS Superintendent (the “Superintendent”) is required if the total of all dividends declared by the bank in a calendar year would exceed the total of its net profits for that year combined with its retained net profits for the preceding two years less prior dividends paid.

New York State Banking Law gives the Superintendent authority to issue an order to a New York State-chartered banking institution to appear and explain an apparent violation of law, to discontinue unauthorized or unsafe practices, and to keep prescribed books and accounts. Upon a finding by the NYDFS that any director, trustee, or officer of any banking organization has violated any law, or has continued unauthorized or unsafe practices in conducting the business of the banking organization after having been notified by the Superintendent to discontinue such practices, such director, trustee, or officer may be removed from office after notice and an opportunity to be heard. The Superintendent also has authority to appoint a conservator or a receiver for a savings or commercial bank under certain circumstances.

FDIC Regulations

Capital Requirements.  The FDIC has adopted risk-based capital guidelines to which the Bank is subject. The guidelines establish a systematic analytical framework that makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations. The Bank is required to maintain certain levels of regulatory capital in relation to regulatory risk-weighted assets. The ratio of such regulatory capital to regulatory risk-weighted assets is referred to as a “risk-based capital ratio.” Risk-based capital ratios are determined by allocating assets and specified off-balance-sheet items to four risk-weighted categories ranging from 0% to 100%, with higher levels of capital being required for the categories perceived as representing greater risk.

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These guidelines divide an institution’s capital into two tiers. The first tier (“Tier 1”) includes common equity, retained earnings, certain non-cumulative perpetual preferred stock (excluding auction rate issues), and minority interests in equity accounts of consolidated subsidiaries, less goodwill and other intangible assets (except mortgage servicing rights and purchased credit card relationships subject to certain limitations). Supplementary (“Tier 2”) capital includes, among other items, cumulative perpetual and long-term limited-life preferred stock, mandatorily convertible securities, certain hybrid capital instruments, term subordinated debt, and the allowance for loan losses, subject to certain limitations, and up to 45% of pre-tax net unrealized gains on equity securities with readily determinable fair market values, less required deductions. Commercial banks are required to maintain a total risk-based capital ratio of at least 8%, of which at least 4% must be Tier 1 capital.

In addition, the FDIC has established regulations prescribing a minimum Tier 1 leverage capital ratio (the ratio of Tier 1 capital to adjusted average assets as specified in the regulations). These regulations provide for a minimum Tier 1 leverage capital ratio of 3% for institutions that meet certain specified criteria, including that they have the highest examination rating and are not experiencing or anticipating significant growth. All other institutions are required to maintain a Tier 1 leverage capital ratio of at least 4%. The FDIC may, however, set higher leverage and risk-based capital requirements on individual institutions when particular circumstances warrant. Institutions experiencing or anticipating significant growth are expected to maintain capital ratios, including tangible capital positions, well above the minimum levels.

As of December 31, 2014, the Bank was deemed to be well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, a bank must maintain a minimum Tier 1 leverage capital ratio of 5%, a minimum Tier 1 risk-based capital ratio of 6%, and a minimum total risk-based capital ratio of 10%. For a summary of the regulatory capital ratios of the Bank at December 31, 2014, see “Note 14 of Notes to Consolidated Financial Statements” in Item 8 of this Annual Report.

The regulatory capital regulations of the FDIC and other federal banking agencies provide that the agencies will take into account the exposure of an institution’s capital and economic value to changes in interest rate risk in assessing capital adequacy. According to such agencies, applicable considerations include the quality of the institution’s interest rate risk management process, overall financial condition, and the level of other risks at the institution for which capital is needed. Institutions with significant interest rate risk may be required to hold additional capital. The agencies have issued a joint policy statement providing guidance on interest rate risk management, including a discussion of the critical factors affecting the agencies’ evaluation of interest rate risk in connection with capital adequacy. Institutions that engage in specified amounts of trading activity may be subject to adjustments in the calculation of the risk-based capital requirement to assure sufficient additional capital to support market risk.

Standards for Safety and Soundness.  Federal law requires each federal banking agency to prescribe, for the depository institutions under its jurisdiction, standards that relate to, among other things, internal controls; information and audit systems; loan documentation; credit underwriting; the monitoring of interest rate risk; asset growth; compensation; fees and benefits; and such other operational and managerial standards as the agency deems appropriate. The federal banking agencies adopted final regulations and Interagency Guidelines Establishing Standards for Safety and Soundness (the “Guidelines”) to implement these safety and soundness standards. The Guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. If the appropriate federal banking agency determines that an institution fails to meet any standard prescribed by the Guidelines, the agency may require the institution to provide it with an acceptable plan to achieve compliance with the standard, as required by the Federal Deposit Insurance Act, as amended, (the “FDI Act”). The final regulations establish deadlines for the submission and review of such safety and soundness compliance plans.

Real Estate Lending Standards.  The FDIC and the other federal banking agencies have adopted regulations that prescribe standards for extensions of credit that are (i) secured by real estate, or (ii) made for the purpose of financing construction or improvements on real estate. The FDIC regulations require each institution to establish and maintain written internal real estate lending standards that are consistent with safe and sound banking practices, and appropriate to the size of the institution and the nature and scope of its real estate lending activities. The standards also must be consistent with accompanying FDIC guidelines, which include loan-to-value limitations for the different types of real estate loans. Institutions are also permitted to make a limited amount of loans that do not conform to the proposed loan-to-value limitations so long as such exceptions are reviewed and justified appropriately. The FDIC guidelines also list a number of lending situations in which exceptions to the loan-to-value standard are justified.

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Dividend Limitations.  The FDIC has authority to use its enforcement powers to prohibit a commercial bank from paying dividends if, in its opinion, the payment of dividends would constitute an unsafe or unsound practice. Federal law prohibits the payment of dividends that will result in the institution failing to meet applicable capital requirements on a pro forma basis. The Bank is also subject to dividend declaration restrictions imposed by New York State law as previously discussed under “New York State Law.”

Investment Activities.  Since the enactment of FDICIA, all state-chartered financial institutions, including commercial banks and their subsidiaries, have generally been limited to such activities as principal and equity investments of the type, and in the amount, authorized for national banks. State law, FDICIA, and FDIC regulations permit certain exceptions to these limitations. In addition, the FDIC is authorized to permit institutions to engage in state-authorized activities or investments not permitted for national banks (other than non-subsidiary equity investments) for institutions that meet all applicable capital requirements if it is determined that such activities or investments do not pose a significant risk to the insurance fund. The Gramm-Leach-Bliley Act of 1999 and FDIC regulations impose certain quantitative and qualitative restrictions on such activities and on a bank’s dealings with a subsidiary that engages in specified activities.

Prompt Corrective Regulatory Action.  Federal law requires, among other things, that federal bank regulatory authorities take “prompt corrective action” with respect to institutions that do not meet minimum capital requirements. For such purposes, the law establishes five capital tiers: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.

The FDIC has adopted regulations to implement prompt corrective action. Among other things, the regulations define the relevant capital measures for the five capital categories. An institution is deemed to be “well capitalized” if it has a total risk-based capital ratio of 10% or greater, a Tier 1 risk-based capital ratio of 6% or greater, and a leverage capital ratio of 5% or greater, and is not subject to a regulatory order, agreement, or directive to meet and maintain a specific capital level for any capital measure. An institution is deemed to be “adequately capitalized” if it has a total risk-based capital ratio of 8% or greater, a Tier 1 risk-based capital ratio of 4% or greater, and generally a leverage capital ratio of 4% or greater. An institution is deemed to be “undercapitalized” if it has a total risk-based capital ratio of less than 8%, a Tier 1 risk-based capital ratio of less than 4%, or generally a leverage capital ratio of less than 4%. An institution is deemed to be “significantly undercapitalized” if it has a total risk-based capital ratio of less than 6%, a Tier 1 risk-based capital ratio of less than 3%, or a leverage capital ratio of less than 3%. An institution is deemed to be “critically undercapitalized” if it has a ratio of tangible equity (as defined in the regulations) to total assets that is equal to or less than 2%.

“Undercapitalized” institutions are subject to growth, capital distribution (including dividend), and other limitations, and are required to submit a capital restoration plan. An institution’s compliance with such plan is required to be guaranteed by any company that controls the undercapitalized institution in an amount equal to the lesser of 5% of the bank’s total assets when deemed undercapitalized or the amount necessary to achieve the status of adequately capitalized. If an undercapitalized institution fails to submit an acceptable plan, it is treated as if it is “significantly undercapitalized.” Significantly undercapitalized institutions are subject to one or more additional restrictions including, but not limited to, an order by the FDIC to sell sufficient voting stock to become adequately capitalized; requirements to reduce total assets, cease receipt of deposits from correspondent banks, or dismiss directors or officers; and restrictions on interest rates paid on deposits, compensation of executive officers, and capital distributions by the parent holding company.

Beginning 60 days after becoming “critically undercapitalized,” critically undercapitalized institutions also may not make any payment of principal or interest on certain subordinated debt, or extend credit for a highly leveraged transaction, or enter into any material transaction outside the ordinary course of business. In addition, subject to a narrow exception, the appointment of a receiver is required for a critically undercapitalized institution within 270 days after it obtains such status.

Insurance of Deposit Accounts.  The deposits of the Bank are insured up to applicable limits by the DIF.  Under the FDIC’s risk-based assessment system, insured institutions are assigned to one of four risk categories based upon supervisory evaluations, regulatory capital level, and certain other factors, with less risky institutions paying lower assessments. An institution’s assessment rate depends upon the category to which it is assigned and certain other factors. Historically, assessment rates ranged from seven to 77.5 basis points of each institution’s deposit assessment base. On February 7, 2011, as required by the Dodd-Frank Act, the FDIC published a final rule to revise the deposit insurance assessment system. The rule, which took effect April 1, 2011, changed the assessment base used for calculating deposit insurance assessments from deposits to total assets less tangible (Tier 1) capital. Since the new base is larger than the previous base, the FDIC also lowered assessment rates so that the rule would not significantly alter the total amount of revenue collected from the industry. On September 30, 2009, the FDIC collected, from all insured institutions, a special emergency assessment of five basis points of total assets minus Tier 1 capital (capped at ten basis points of an institution’s deposit assessment base as of June 30, 2009), in order to cover losses to the DIF. The FDIC considered the need for similar special assessments during the final two quarters of 2009. However, in lieu of further special assessments, the FDIC required insured institutions to prepay estimated quarterly risk-based assessments for the fourth quarter of 2009 through the fourth quarter of 2012.  The Bank prepaid a total of $16.9 million in risk-based assessments.

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Due to the decline in economic conditions, the deposit insurance provided by the FDIC per account owner was raised to $250,000 for all types of accounts. That change, initially intended to be temporary, was made permanent by the Dodd-Frank Act. In addition, the FDIC adopted an optional Temporary Liquidity Guarantee Program (“TLGP”) under which, for a fee, non-interest-bearing transaction accounts would receive unlimited insurance coverage until December 31, 2009 (later extended to December 31, 2010), and certain senior unsecured debt issued by institutions and their holding companies between October 13, 2008 and June 30, 2009 (later extended to October 31, 2009) would be guaranteed by the FDIC through June 30, 2012 or, in certain cases, until December 31, 2012. The Dodd-Frank Act provided for continued unlimited coverage for certain non-interest-bearing transaction accounts until December 31, 2012.

The Dodd-Frank Act increased the minimum target DIF ratio from 1.15% of estimated insured deposits to 1.35% of estimated insured deposits. The FDIC must seek to achieve the 1.35% ratio by September 30, 2020. Insured institutions with assets of $10 billion or more are supposed to fund the increase. The Dodd-Frank Act eliminated the 1.5% maximum fund ratio, leaving it, instead, to the discretion of the FDIC. The FDIC has exercised that discretion by establishing a long range fund ratio of 2%, which could result in our paying higher deposit insurance premiums in the future.

Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order, or condition imposed by the FDIC. Management does not know of any practice, condition, or violation that would lead to termination of the deposit insurance of the Bank.

On September 30, 1996, as part of an omnibus appropriations bill, the Deposit Insurance Funds Act of 1996 (the “Funds Act”) was enacted. The Funds Act required Bank Insurance Fund (“BIF”) institutions, including the Savings Bank, beginning January 1, 1997, to pay a portion of the interest due on the Finance Corporation (“FICO”) bonds issued in connection with the savings and loan association crisis in the late 1980s, and required BIF institutions to pay their full pro rata share of the FICO payments starting the earlier of January 1, 2000 or the date at which no savings institution continues to exist. We were required, as of January 1, 2000, to pay our full pro rata share of the FICO payments. The FICO assessment rate is subject to change. The Bank paid $267,000, $269,000 and $299,000 for their share of the interest due on FICO bonds in 2014, 2013 and 2012, respectively, which was included in FDIC insurance expense.

Brokered Deposits.  The FDIC has promulgated regulations implementing the FDICIA limitations on brokered deposits. Under the regulations, well-capitalized institutions are not subject to brokered deposit limitations, while adequately capitalized institutions are able to accept, renew or roll over brokered deposits only with a waiver from the FDIC and subject to restrictions on the interest rate that can be paid on such deposits. Undercapitalized institutions are not permitted to accept brokered deposits and may not solicit deposits by offering an effective yield that exceeds by more than 75 basis points the prevailing effective yields on insured deposits of comparable maturity in the institution’s normal market area or in the market area in which such deposits are being solicited.  Pursuant to the regulation, the Bank, as a well-capitalized institution, may accept brokered deposits. At December 31, 2014, the Bank had $763.9 million in brokered deposit accounts.

Transactions with Affiliates

Under current federal law, transactions between depository institutions and their affiliates are governed by Sections 23A and 23B of the Federal Reserve Act and the FRB’s Regulation W promulgated thereunder. An affiliate of a commercial bank is any company or entity that controls, is controlled by, or is under common control with, the institution, other than a subsidiary. Generally, an institution’s subsidiaries are not treated as affiliates unless they are engaged in activities as principal that are not permissible for national banks. In a holding company context, at a minimum, the parent holding company of an institution, and any companies that are controlled by such parent holding company, are affiliates of the institution. Generally, Section 23A limits the extent to which the institution or its subsidiaries may engage in “covered transactions” with any one affiliate to an amount equal to 10% of the institution’s capital stock and surplus, and contains an aggregate limit on all such transactions with all affiliates to an amount equal to 20% of such capital stock and surplus. The term “covered transaction” includes the making of loans or other extensions of credit to an affiliate; the purchase of assets from an affiliate; the purchase of, or an investment in, the securities of an affiliate; the acceptance of securities of an affiliate as collateral for a loan or extension of credit to any person; or issuance of a guarantee, acceptance, or letter of credit on behalf of an affiliate. Section 23A also establishes specific collateral requirements for loans or extensions of credit to, or guarantees or acceptances on letters of credit issued on behalf of, an affiliate. Section 23B requires that covered transactions and a broad list of other specified transactions be on terms substantially the same as, or at least asfavorable to, the institution or its subsidiary as similar transactions with non-affiliates.

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The Sarbanes-Oxley Act of 2002 generally prohibits loans by the Company to its executive officers and directors. However, the Sarbanes-Oxley Act contains a specific exemption for loans by an institution to its executive officers and directors in compliance with federal banking laws. Section 22(h) of the Federal Reserve Act, and FRB Regulation O adopted thereunder, governs loans by a savings bank or commercial bank to directors, executive officers, and principal shareholders. Under Section 22(h), loans to directors, executive officers, and shareholders who control, directly or indirectly, 10% or more of voting securities of an institution, and certain related interests of any of the foregoing, may not exceed, together with all other outstanding loans to such persons and affiliated entities, the institution’s total capital and surplus. Section 22(h) also prohibits loans above amounts prescribed by the appropriate federal banking agency to directors, executive officers, and shareholders who control 10% or more of the voting securities of an institution, and its respective related interests, unless such loan is approved in advance by a majority of the board of the institution’s directors. Any “interested” director may not participate in the voting. The loan amount (which includes all other outstanding loans to such person) as to which such prior board of director approval is required, is the greater of $25,000 or 5% of capital and surplus or any loans aggregating over $500,000. Further, pursuant to Section 22(h), loans to directors, executive officers, and principal shareholders must be made on terms substantially the same as those offered in comparable transactions to other persons. There is an exception for loans made pursuant to a benefit or compensation program that is widely available to all employees of the institution and does not give preference to executive officers over other employees. Section 22(g) of the Federal Reserve Act places additional limitations on loans to executive officers.

Community Reinvestment Act

           Federal Regulation.  Under the Community Reinvestment Act (“CRA”), as implemented by FDIC regulations, an institution has a continuing and affirmative obligation consistent with its safe and sound operation to help meet the credit needs of its entire community, including low and moderate income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions, nor does it limit an institution’s discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA. The CRA requires the FDIC, in connection with its examinations, to assess the institution’s record of meeting the credit needs of its community and to take such record into account in its evaluation of certain applications by such institution. The CRA requires public disclosure of an institution’s CRA rating and further requires the FDIC to provide a written evaluation of an institution’s CRA performance utilizing a four-tiered descriptive rating system. The Bank received a CRA rating of “Satisfactory” in its most recent completed CRA examination, which was completed as of April 30, 2012.  Institutions that receive less than a satisfactory rating may face difficulties in securing approval for new activities or acquisitions.  The CRA requires all institutions to make public disclosures of their CRA ratings. As a special purpose commercial bank, the Commercial Bank was not required to comply with the CRA prior to the Merger. Since the Merger, the Bank is required to comply with CRA.

New York State Regulation.  The Bank is also subject to provisions of the New York State Banking Law that impose continuing and affirmative obligations upon a banking institution organized in New York State to serve the credit needs of its local community (the “NYCRA”). Such obligations are substantially similar to those imposed by the CRA. The NYCRA requires the NYDFS to make a periodic written assessment of an institution’s compliance with the NYCRA, utilizing a four-tiered rating system, and to make such assessment available to the public. The NYCRA also requires the Superintendent to consider the NYCRA rating when reviewing an application to engage in certain transactions, including mergers, asset purchases, and the establishment of branch offices or ATMs, and provides that such assessment may serve as a basis for the denial of any such application.

Federal Reserve System

Under FRB regulations, the Bank is required to maintain reserves against its transaction accounts. The FRB regulations generally require that reserves be maintained against aggregate transaction accounts as follows: for that portion of transaction accounts aggregating $103.6 million or less (subject to adjustment by the FRB), the reserve requirement is 3%; for amounts greater than $103.6 million, the reserve requirement is 10% (subject to adjustment by the FRB between 8% and 14%). The first $14.5 million of otherwise reservable balances (subject to adjustments by the FRB) are exempted from the reserve requirements. The Bank is in compliance with the foregoing requirements.

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Federal Home Loan Bank System

The Bank is a member of the FHLB-NY, one of 12 regional FHLBs comprising the FHLB system. Each regional FHLB manages its customer relationships, while the 12 FHLBs use its combined size and strength to obtain its necessary funding at the lowest possible cost. As a member of the FHLB-NY, the Bank is required to acquire and hold shares of FHLB-NY capital stock. Pursuant to this requirement, at December 31, 2014, the Bank was required to maintain $46.9 million of FHLB-NY stock.

Holding Company Regulation

           Subsequent to the Merger, the Company is subject to examination, regulation, and periodic reporting under the Bank Holding Company Act of 1956, as amended (the “BHCA”), as administered by the FRB.  The Company is required to obtain the prior approval of the FRB to acquire all, or substantially all, of the assets of any bank or bank holding company. Prior FRB approval would be required for the Company to acquire direct or indirect ownership or control of any voting securities of any bank or bank holding company if, after giving effect to such acquisition, it would, directly or indirectly, own or control more than 5% of any class of voting shares of such bank or bank holding company. In addition before any bank acquisition can be completed, prior approval thereof may also be required to be obtained from other agencies having supervisory jurisdiction over the bank to be acquired, including the NYDFS.

FRB regulations generally prohibit a bank holding company from engaging in, or acquiring, direct or indirect control of more than 5% of the voting securities of any company engaged in non-banking activities. One of the principal exceptions to this prohibition is for activities found by the FRB to be so closely related to banking or managing or controlling Bank as to be a proper incident thereto. Some of the principal activities that the FRB has determined by regulation to be so closely related to banking are: (i) making or servicing loans; (ii) performing certain data processing services; (iii) providing discount brokerage services; (iv) acting as fiduciary, investment, or financial advisor; (v) leasing personal or real property; (vi) making investments in corporations or projects designed primarily to promote community welfare; and (vii) acquiring a savings and loan association.

The FRB has adopted capital adequacy guidelines for bank holding companies (on a consolidated basis).  At December 31, 2014, the Company’s consolidated Total and Tier 1 capital exceeded these requirements. The Dodd-Frank Act required the FRB to issue consolidated regulatory capital requirements for bank holding companies that are at least as stringent as those applicable to insured depository institutions. Such regulations eliminated the use of certain instruments, such as cumulative preferred stock and trust preferred securities, as Tier 1 holding company capital.

Bank holding companies are generally required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding twelve months, is equal to 10% or more of the Company’s consolidated net worth. The FRB may disapprove such a purchase or redemption if it determines that the proposal would constitute an unsafe or unsound practice, or would violate any law, regulation, FRB order or directive, or any condition imposed by, or written agreement with, the FRB. The FRB has adopted an exception to this approval requirement for well-capitalized bank holding companies that meet certain other conditions.

The FRB has issued a policy statement regarding the payment of dividends by bank holding companies. In general, the FRB’s policies provide that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the bank holding company appears consistent with the organization’s capital needs, asset quality, and overall financial condition. The FRB’s policies also require that a bank holding company serve as a source of financial strength to its subsidiary banks by standing ready to use available resources to provide adequate capital funds to those banks during periods of financial stress or adversity, and by maintaining the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary banks where necessary. The Dodd-Frank Act codifies the source of financial strength policy and requires regulations to facilitate its application. Under the prompt corrective action laws, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. These regulatory policies could affect the ability of the Company to pay dividends or otherwise engage in capital distributions.

Under the FDI Act, a depository institution may be liable to the FDIC for losses caused the DIF if a commonly controlled depository institution were to fail. The Bank is commonly controlled within the meaning of that law.

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The status of the Company as a registered bank holding company under the BHCA does not exempt it from certain federal and state laws and regulations applicable to corporations generally, including, without limitation, certain provisions of the federal securities laws.

The Company, the Bank, and their respective affiliates will be affected by the monetary and fiscal policies of various agencies of the United States Government, including the Federal Reserve System. In view of changing conditions in the national economy and in the money markets, it is difficult for management to accurately predict future changes in monetary policy or the effect of such changes on the business or financial condition of the Company or the Bank.

Acquisition of the Holding Company

           Under the Federal Change in Bank Control Act (“CIBCA”), a notice must be submitted to the FRB if any person (including a company), or group acting in concert, seeks to acquire 10% or more of the Company’s shares of outstanding common stock, unless the FRB has found that the acquisition will not result in a change in control of the Company. Under the CIBCA, the FRB generally has 60 days within which to act on such notices, taking into consideration certain factors, including the financial and managerial resources of the acquirer; the convenience and needs of the communities served by the Company and the Bank; and the anti-trust effects of the acquisition. Under the BHCA, any company would be required to obtain approval from the FRB before it may obtain “control” of the Company within the meaning of the BHCA. Control generally is defined to mean the ownership or power to vote 25% or more of any class of voting securities of the Company or the ability to control in any manner the election of a majority of the Company’s directors. An existing bank holding company would, under the BHCA, be required to obtain the FRB’s approval before acquiring more than 5% of the Company’s voting stock.  In addition to the CIBCA and the BHCA, New York State Banking Law generally requires prior approval of the New York State Banking Board before any action is taken that causes any company to acquire direct or indirect control of a banking institution that is organized in New York.

Federal Securities Law

           The Company’s common stock and (associated preferred stock purchase rights) listed on the cover page of this report are registered with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company is subject to the information and reporting requirements, regulations governing proxy solicitations, insider trading restrictions, and other requirements under the Exchange Act.

 Consumer Financial Protection Bureau

Created under the Dodd-Frank Act, and given extensive implementation and enforcement powers, the CFPB has broad rulemaking authority for a wide range of consumer financial laws that apply to all banks, including, among other things, the authority to prohibit “unfair, deceptive, or abusive” acts and practices. Abusive acts or practices are defined as those that (1) materially interfere with a consumer’s ability to understand a term or condition of a consumer financial product or service, or (2) take unreasonable advantage of a consumer’s (a) lack of financial savvy, (b) inability to protect himself in the selection or use of consumer financial products or services, or (c) reasonable reliance on a covered entity to act in the consumer’s interests. The CFPB has the authority to investigate possible violations of federal consumer financial law, hold hearings and commence civil litigation. The CFPB can issue cease-and-desist orders against banks and other entities that violate consumer financial laws. The CFPB may also institute a civil action against an entity in violation of federal consumer financial law in order to impose a civil penalty or an injunction.

Mortgage Banking and Related Consumer Protection Regulations

The retail activities of the Bank, including lending and the acceptance of deposits, are subject to a variety of statutes and regulations designed to protect consumers. Interest and other charges collected or contracted for by the Bank are subject to state usury laws and federal laws concerning interest rates. Loan operations are also subject to federal laws applicable to credit transactions, such as:

• The federal Truth-In-Lending Act and Regulation Z issued by the FRB, governing disclosures of credit terms to consumer borrowers;

• The Home Mortgage Disclosure Act and Regulation C issued by the FRB, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

• The Equal Credit Opportunity Act and Regulation B issued by the FRB, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;

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• The Fair Credit Reporting Act and Regulation V issued by the FRB, governing the use and provision of information to consumer reporting agencies;

• The Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and

• The guidance of the various federal agencies charged with the responsibility of implementing such federal laws.

Deposit operations also are subject to:

• The Truth in Savings Act and Regulation DD issued by the FRB, which requires disclosure of deposit terms to consumers;

• Regulation CC issued by the FRB, which relates to the availability of deposit funds to consumers;

• The Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and

• The Electronic Funds Transfer Act and Regulation E issued by the FRB, which governs automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.

In addition, the Bank and its subsidiaries may also be subject to certain state laws and regulations designed to protect consumers.

Many of the foregoing laws and regulations are subject to change resulting from the provisions in the Dodd-Frank Act, which in many cases calls for revisions to implementing regulations. In addition, oversight responsibilities of these and other consumer protection laws and regulations will, in large measure, transfer from the Bank’s primary regulators to the CFPB. We cannot predict the effect that being regulated by a new, additional regulatory authority focused on consumer financial protection, or any new implementing regulations or revisions to existing regulations that may result from the establishment of this new authority, will have on our businesses.

Available Information

We are a reporting company and file annual, quarterly and current reports, proxy statements and other information with the SEC.  We make available free of charge on or through our web site at www.flushingbank.com our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.   Our SEC filings are also available to the public free of charge over the Internet at the SEC’s web site at http://www.sec.gov.

You may also read and copy any document we file at the SEC’s public reference room located at 100 F. Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information about the operation of the public reference room by calling the SEC at 1-800-SEC-0330.  You may request copies of these documents by writing to the SEC and paying a fee for the copying cost.

Item 1A.    Risk Factors.

In addition to the other information contained in this Annual Report, the following factors and other considerations should be considered carefully in evaluating us and our business.

Changes in Interest Rates May Significantly Impact Our Financial Condition and Results of Operations

Like most financial institutions, our results of operations depend to a large degree on our net interest income. When interest-bearing liabilities mature or reprice more quickly than interest-earning assets, a significant increase in market interest rates could adversely affect net interest income. Conversely, a significant decrease in market interest rates could result in increased net interest income.  As a general matter, we seek to manage our business to limit our overall exposure to interest rate fluctuations.  However, fluctuations in market interest rates are neither predictable nor controllable and may have a material adverse impact on our operations and financial condition. Additionally, in a rising interest rate environment, a borrower’s ability to repay adjustable rate mortgages can be negatively affected as payments increase at repricing dates.

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Prevailing interest rates also affect the extent to which borrowers repay and refinance loans. In a declining interest rate environment, the number of loan prepayments and loan refinancing may increase, as well as prepayments of mortgage-backed securities. Call provisions associated with our investment in U.S. government agency and corporate securities may also adversely affect yield in a declining interest rate environment. Such prepayments and calls may adversely affect the yield of our loan portfolio and mortgage-backed and other securities as we reinvest the prepaid funds in a lower interest rate environment. However, we typically receive additional loan fees when existing loans are refinanced, which partially offset the reduced yield on our loan portfolio resulting from prepayments. In periods of low interest rates, our level of core deposits also may decline if depositors seek higher-yielding instruments or other investments not offered by us, which in turn may increase our cost of funds and decrease our net interest margin to the extent alternative funding sources are utilized. An increasing interest rate environment would tend to extend the average lives of lower yielding fixed rate mortgages and mortgage-backed securities, which could adversely affect net interest income. In addition, depositors tend to open longer term, higher costing certificate of deposit accounts which could adversely affect our net interest income if rates were to subsequently decline. Additionally, adjustable rate mortgage loans and mortgage-backed securities generally contain interim and lifetime caps that limit the amount the interest rate can increase or decrease at repricing dates. Significant increases in prevailing interest rates may significantly affect demand for loans and the value of bank collateral. See “— Local Economic Conditions.”

Our Lending Activities Involve Risks that May Be Exacerbated Depending on the Mix of Loan Types

At December 31, 2014, our gross loan portfolio was $3,798.7 million, of which 87% was mortgage loans secured by real estate. The majority of these real estate loans were secured by multi-family residential property ($1,923.5 million), commercial real estate ($621.6 million) and one-to-four family mixed-use property ($573.8 million), which combined represent 82% of our loan portfolio. Our loan portfolio is concentrated in the New York City metropolitan area. Multi-family residential, one-to-four family mixed-use property, commercial real estate mortgage loans, and construction loans, are generally viewed as exposing the lender to a greater risk of loss than fully underwritten one-to-four family residential mortgage loans and typically involve higher principal amounts per loan. Multi-family residential, one-to-four family mixed-use property and commercial real estate mortgage loans are typically dependent upon the successful operation of the related property, which is usually owned by a legal entity with the property being the entity’s only asset. If the cash flow from the property is reduced, the borrower’s ability to repay the loan may be impaired. If the borrower defaults, our only remedy may be to foreclose on the property, for which the market value may be less than the balance due on the related mortgage loan. We attempt to mitigate this risk by generally requiring a loan-to-value ratio of no more than 75% at a time the loan is originated, except for one-to-four family residential mortgage loans, where we require a loan-to value ratio of no more than 80%. Repayment of construction loans is contingent upon the successful completion and operation of the project. The repayment of commercial business loans (the increased origination of which is part of management’s strategy), is contingent on the successful operation of the related business. Changes in local economic conditions and government regulations, which are outside the control of the borrower or lender, also could affect the value of the security for the loan or the future cash flow of the affected properties. We continually review the composition of our mortgage loan portfolio to manage the risk in the portfolio.

In addition, prior to 2010, we have originated one-to-four family residential mortgage loans without verifying the borrower’s level of income. These loans involve a higher degree of risk as compared to our other fully underwritten one-to-four family residential mortgage loans. These risks are mitigated by our policy to generally limit the amount of one-to-four family residential mortgage loans to 80% of the appraised value or sale price, whichever is less, as well as charging a higher interest rate than when the borrower’s income is verified. At December 31, 2014, we had $12.9 million outstanding of one-to-four family residential properties originated to individuals based on stated income and verifiable assets, and $44.8 million advanced on home equity lines of credit for which we did not verify the borrowers income. The total loans for which we did not verify the borrower’s income at December 31, 2014 was $57.7 million, or 1.5% of gross loans. These types of loans are generally referred to as “Alt A” loans since the borrower’s income was not verified. These loans are not as readily saleable in the secondary market as our other fully underwritten loans, either as whole loans or when pooled or securitized. We no longer originate one-to-four family residential mortgage loans or home equity lines of credit to individuals without verifying their income. We have not originated, nor do we hold in portfolio, any subprime loans.

Even in stable economic times, higher default rates may be expected for Alt A and similar loans. Although we attempted to incorporate the higher default rates associated with these loans into our pricing models, there can be no assurance that the premiums earned and the associated investment income will prove adequate to compensate for future losses from these loans. Worsening economic conditions, rising unemployment rates and/or other regional real estate price declines could even more significantly increase the default risks associated with these loans. In addition, these same negative economic and market conditions could also significantly increase the default risk on loans for which we did not assume higher default and claim rates.

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In assessing our future earnings prospects, investors should consider, among other things, our level of origination of one-to-four family residential, multi-family residential, commercial real estate and one-to-four family mixed-use property mortgage loans, and commercial business and construction loans, and the greater risks associated with such loans. See “Business — Lending Activities” in Item 1 of this Annual Report.

Failure to Effectively Manage Our Liquidity Could Significantly Impact Our Financial Condition and Results of Operations

Our liquidity is critical to our ability to operate our business. Our primary sources of liquidity are deposits, both retail deposits from our branch network including our internet branch and brokered deposits, and borrowed funds, primarily wholesale borrowing from the FHLB-NY and repurchase agreements from both the FHLB-NY and commercial banks.  Funds are also provided by the repayment and sale of securities and loans.  Our ability to obtain funds are influenced by many external factors, including but not limited to, local and national economic conditions, the direction of interest rates and competition for deposits in the markets we serve. Additionally, changes in the FHLB-NY underwriting guidelines may limit or restrict our ability to borrow.  A decline in available funding caused by any of the above factors or could adversely impact our ability to originate loans, invest in securities, meet our expenses, or fulfill our obligations such as repaying our borrowings or meeting deposit withdrawal demands.

Our Ability to Obtain Brokered Certificates of Deposit and Brokered Money Market Accounts as an Additional Funding Source Could be Limited

We utilize brokered deposits as an additional funding source and to assist in the management of our interest rate risk. The Bank had $763.9 million, or 21.8% of total deposits, and $517.4 million, or 16.0% of total deposits, in brokered deposit accounts at December 31, 2014 and 2013, respectively.  We have obtained brokered certificates of deposit when the interest rate on these deposits is below the prevailing interest rate for non-brokered certificates of deposit with similar maturities in our market, or when obtaining them allowed us to extend the maturities of our deposits at favorable rates compared to borrowing funds with similar maturities, when we are seeking to extend the maturities of our funding to assist in the management of our interest rate risk. Brokered certificates of deposit provide a large deposit for us at a lower operating cost as compared to non-brokered certificates of deposit since we only have one account to maintain versus several accounts with multiple interest and maturity checks. Unlike non-brokered certificates of deposit where the deposit amount can be withdrawn with a penalty for any reason, including increasing interest rates, a brokered certificate of deposit can only be withdrawn in the event of the death or court declared mental incompetence of the depositor. This allows us to better manage the maturity of our deposits and our interest rate risk. We also utilize brokers to obtain money market account deposits. The rate we pay on brokered money market accounts is the same or below the rate we pay on non-brokered money market accounts, and the rate is agreed to in a contract between the Bank and the broker. These accounts are similar to brokered certificates of deposit accounts in that we only maintain one account for the total deposit per broker, with the broker maintaining the detailed records of each depositor. Additionally, during 2014 we shifted approximately $94.0 million in Government NOW deposits to an ICS brokered money market product which does not require us to provide collateral. This will allow us to invest our funds in higher yielding assets.  The Bank had $180.2 million and $70.5 million in brokered money market accounts at December 31, 2014 and 2013, respectively.

The FDIC has promulgated regulations implementing limitations on brokered deposits. Under the regulations, well-capitalized institutions, such as the Bank, are not subject to brokered deposit limitations, while adequately capitalized institutions are able to accept, renew or roll over brokered deposits only with a waiver from the FDIC and subject to restrictions on the interest rate that can be paid on such deposits. Undercapitalized institutions are not permitted to accept brokered deposits.  Pursuant to the regulation, the Bank, as a well-capitalized institution, may accept brokered deposits. Should our capital ratios decline, this could limit our ability to replace brokered deposits when they mature.

The maturity of brokered certificates of deposit could result in a significant funding source maturing at one time. Should this occur, it might be difficult to replace the maturing certificates with new brokered certificates of deposit. We have used brokers to obtain these deposits which results in depositors with whom we have no other relationships since these depositors are outside of our market, and there may not be a sufficient source of new brokered certificates of deposit at the time of maturity. In addition, upon maturity, brokers could require us to offer some of the highest interest rates in the country to retain these deposits, which would negatively impact our earnings. The Bank mitigates this risk by obtaining brokered certificates of deposit with various maturities ranging up to six years, and attempts to avoid having a significant amount maturing in any one year.

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The Markets in Which We Operate Are Highly Competitive

We face intense and increasing competition both in making loans and in attracting deposits. Our market area has a high density of financial institutions, many of which have greater financial resources, name recognition and market presence than us, and all of which are our competitors to varying degrees. Particularly intense competition exists for deposits and in all of the lending activities we emphasize. Our competition for loans comes principally from commercial banks, savings banks, savings and loan associations, mortgage banking companies, insurance companies, finance companies and credit unions. Management anticipates that competition for mortgage loans will continue to increase in the future. Our most direct competition for deposits historically has come from savings banks, commercial banks, savings and loan associations and credit unions. In addition, we face competition for deposits from products offered by brokerage firms, insurance companies and other financial intermediaries, such as money market and other mutual funds and annuities. Consolidation in the banking industry and the lifting of interstate banking and branching restrictions have made it more difficult for smaller, community-oriented banks, such as us, to compete effectively with large, national, regional and super-regional banking institutions. We launched an internet branch, “iGObanking.com®” a division of the Bank, to provide us with access to consumers in markets outside our geographic locations. The internet banking arena also has many larger financial institutions which have greater financial resources, name recognition and market presence than we do.

Notwithstanding the intense competition, we have been successful in increasing our loan portfolios and deposit base. However, no assurances can be given that we will be able to continue to increase our loan portfolios and deposit base, as contemplated by management’s current business strategy.

Our Results of Operations May Be Adversely Affected by Changes in National and/or Local Economic Conditions

Our operating results are affected by national and local economic and competitive conditions, including changes in market interest rates, the strength of the local economy, government policies and actions of regulatory authorities.  The national and our local economies were generally considered to be in a recession from December 2007 through the middle of 2009.  This resulted in increased unemployment and declining property values, although the property value declines in the New York City metropolitan area have not been as great as many other areas of the country. While the national and local economies showed signs of improvement since the middle of 2010, improvements in unemployment have lagged until recently when the unemployment rate decreased to 6.3% at December 2014 from 7.5% at December 2013, for the New York City region, according to the New York State Department of Labor. The housing market in the United States continued to see a significant slowdown during 2009, and foreclosures of single family homes rose to levels not seen in the prior five years.  The downturn in the housing market has slowed. These economic conditions can result in borrowers defaulting on their loans, or withdrawing their funds on deposit at the Bank to meet their financial obligations.  While we have seen an increase in deposits, we have also seen a significant increase in delinquent loans, resulting in an increase in our provision for loan losses, although we have seen improvements in 2013 and 2014. This increase in delinquent loans primarily consists of mortgage loans collateralized by residential income producing properties that are located in the New York City metropolitan market. Given New York City’s low vacancy rates, the properties have retained their value and have provided us with low loss content in our non-performing loans. We cannot predict the effect of these economic conditions on our financial condition or operating results.

A decline in the local or national economy or the New York City metropolitan area real estate market could adversely affect our financial condition and results of operations, including through decreased demand for loans or increased competition for good loans, increased non-performing loans and loan losses and resulting additional provisions for loan losses and for losses on real estate owned.  Although management believes that the current allowance for loan losses is adequate in light of current economic conditions, many factors could require additions to the allowance for loan losses in future periods above those currently maintained.  These factors include: (1) adverse changes in economic conditions and changes in interest rates that may affect the ability of borrowers to make payments on loans, (2) changes in the financial capacity of individual borrowers, (3) changes in the local real estate market and the value of our loan collateral, and (4) future review and evaluation of our loan portfolio, internally or by regulators.  The amount of the allowance for loan losses at any time represents good faith estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions, prevailing interest rates and other factors.  See “Business — General — Allowance for Loan Losses” in Item 1 of this Annual Report.

These same factors have caused delinquencies to increase for the mortgages which are the collateral for the mortgage-backed securities we hold in our investment portfolio. Combining the increased delinquencies with liquidity problems in the market has resulted in a decline in the market value of our investments in privately issued mortgage-backed securities. There can be no assurance that the decline in the market value of these investments will not result in an other-than-temporary impairment charge being recorded in our financial statements.”

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Changes in Laws and Regulations Could Adversely Affect Our Business

From time to time, legislation, such as the Dodd-Frank Act, is enacted or regulations are promulgated that have the effect of increasing the cost of doing business, limiting or expanding permissible activities or affecting the competitive balance between banks and other financial institutions.  Proposals to change the laws and regulations governing the operations and taxation of banks and other financial institutions are frequently made in Congress, in the New York legislature and before various bank regulatory agencies.  No prediction can be made as to the likelihood of any major changes (in addition to the Dodd-Frank Act) or the impact such changes might have on us. For a discussion of regulations affecting us, see “Business —Regulation” and “Business—Federal, State and Local Taxation” in Item 1 of this Annual Report.

There can be no assurance as to the actual impact that any laws, regulations or governmental programs that may be introduced or implemented in the future will have on the financial markets and the economy. A continuation or worsening of current financial market conditions could materially and adversely affect our business, financial condition, results of operations, and access to credit or the trading price of our securities.

Current Conditions in, and Regulation of, the Banking Industry May Have a Material Adverse Effect on Our Results of Operations

Financial institutions have been the subject of significant legislative and regulatory changes and may be the subject of further significant legislation or regulation in the future, none of which is within our control.  Significant new laws or regulations or changes in, or repeals of, existing laws or regulations, including those with respect to federal and state taxation, may cause our results of operations to differ materially.  In addition, the cost and burden of compliance, over time, have significantly increased and could adversely affect our ability to operate profitably.

On July 21, 2010, President Obama signed the Dodd-Frank Act into law.  The Dodd-Frank Act is intended to address perceived weaknesses in the U.S. financial regulatory system and prevent future economic and financial crises.  There are many provisions of the Dodd-Frank Act which will be implemented through regulations to be adopted within specified time frames following the effective date of the Dodd-Frank Act, which creates a risk of uncertainty as to the effect that such provisions will ultimately have. The full impact of the changes in regulation will depend on new regulations that have yet to be written.  The new regulations could have a material adverse effect on our business, financial condition or results of operations.  Although it is not possible for us to determine at this time whether the Dodd-Frank Act will have a material adverse effect on our business, financial condition or results of operations, we believe the following provisions of the Dodd-Frank Act will have an impact on us:

· New Primary Regulatory.  On July 21, 2011, the OTS, our then primary federal regulator, was eliminated and the OCC took over the regulation of all federal savings banks, such as the Savings Bank.  The Federal Reserve acquired the OTS’s authority over all savings and loan holding companies, such as the Bank’s holding company, and became the supervisor of all subsidiaries of savings and loan holding companies other than depository institutions.  As a result, we became subject to regulation, supervision and examination by two federal banking agencies, the OCC and the Federal Reserve, rather than just by the OTS, as was previously the case.  The OCC was replaced by the FDIC as the Bank’s federal regulator as a result of the Merger and the Savings Bank’s conversion from thrift to a bank. The Dodd-Frank Act also provided for the creation of the Consumer Financial Protection Bureau (the “CFPB”). The CFPB has the authority to implement and enforce a variety of existing consumer protection statutes and to issue new regulations.  As a new independent bureau within the FRB, it is possible that the CFPB will focus more attention on consumers and may impose requirements more severe than the previous bank regulatory agencies.

· Consolidated Holding Company Capital Requirements.  The Dodd-Frank Act requires the federal banking agencies to establish consolidated risk-based and leverage capital requirements for insured depository institutions, depository institution holding companies and systemically important nonbank financial companies.  These requirements must be no less than those to which insured depository institutions are currently subject, and the new requirements will effectively eliminate the use of newly-issued trust preferred securities as a component of Tier 1 Capital for depository institution holding companies of our size.  As a result, no later than the fifth anniversary of the effective date of the Dodd-Frank Act, we will become subject to consolidated capital requirements to which we have not previously been subject. Effective February 28, 2013, as a result of the Merger, Flushing Financial Corporation became a bank holding company and it became subject to consolidated capital requirements.

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· Roll Back of Federal Preemption.  The Dodd-Frank Act significantly rolls back the federal preemption of state consumer protection laws that federal savings associations and national banks currently enjoy by (1) permitting federal preemption of a state consumer financial law only if such law prevents or significantly interferes with the exercise of a federal savings association’s or national bank’s powers or such state law is preempted by another federal law, (2) mandating that any preemption decision be made on a case by case basis rather than a blanket rule, and (3) ending the applicability of preemption to subsidiaries and affiliates of national banks and federal savings associations.  As a result, we may now be subject to state laws in each state where we do business, and those laws may be interpreted and enforced differently in different states.

The Dodd-Frank Act also includes provisions, subject to further rulemaking by the federal bank regulatory agencies, that may affect our future operations, including provisions that create minimum standards for the origination of mortgages, restrict proprietary trading by banking entities, restrict the sponsorship of and investment in hedge funds and private equity funds by banking entities that remove certain obstacles to the conversion of savings associations to national banks.  We will not be able to determine the impact of these provisions until final rules are promulgated to implement these provisions and other regulatory guidance is provided interpreting these provisions.

Certain Anti-Takeover Provisions May Increase the Costs to or Discourage an Acquirer

On September 5, 2006, the Board of Directors renewed our Stockholder Rights Plan (the “Rights Plan”), which was originally adopted on and had been in place since September 17, 1996 and had been scheduled to expire on September 30, 2006. The Rights Plan was designed to preserve long-term values and protect stockholders against inadequate offers and other unfair tactics to acquire control of us.  Under the Rights Plan, each stockholder of record at the close of business on September 30, 2006 received a dividend distribution of one right to purchase from the Company one one-hundredth of a share of Series A junior participating preferred stock at a price of $65.  The rights will become exercisable only if a person or group acquires 15% or more of our common stock or commences a tender or exchange offer which, if consummated, would result in that person or group owning at least 15% of the Common Stock (the “acquiring person or group”).  In such case, all stockholders other than the acquiring person or group will be entitled to purchase, by paying the $65 exercise price, Common Stock (or a common stock equivalent) with a value of twice the exercise price.  In addition, at any time after such event, and prior to the acquisition by any person or group of 50% or more of the Common Stock, the Board of Directors may, at its option, require each outstanding right (other than rights held by the acquiring person or group) to be exchanged for one share of Common Stock (or one common stock equivalent).  If a person or group becomes an acquiring person and we are acquired in a merger or other business combination or sell more than 50% of our assets or earning power, each right will entitle all other holders to purchase, by payment of $65 exercise price, common stock of the acquiring company with a value of twice the exercise price. The renewed rights plan expires on September 30, 2016.

The Rights Plan, as well as certain provisions of our certificate of incorporation and bylaws, the Bank’s charter and bylaws, certain federal regulations and provisions of Delaware corporation law, and certain provisions of remuneration plans and agreements applicable to employees and officers of the Bank may have anti-takeover effects by discouraging potential proxy contests and other takeover attempts, particularly those which have not been negotiated with the Board of Directors.  The Rights Plan and those other provisions, as well as applicable regulatory restrictions, may also prevent or inhibit the acquisition of a controlling position in the Common Stock and may prevent or inhibit takeover attempts that certain stockholders may deem to be in their or other stockholders’ interest or in our interest, or in which stockholders may receive a substantial premium for their shares over then current market prices. The Rights Plan and those other provisions may also increase the cost of, and thus discourage, any such future acquisition or attempted acquisition, and would render the removal of the current Board of Directors or management of the Company more difficult.

We May Not Be Able to Successfully Implement Our Commercial Business Banking Initiative

Our strategy includes a transition to a more “commercial-like” banking institution. We have developed a complement of deposit, loan and cash management products to support this initiative, and intend to expand these product offerings. A business banking unit builds relationships in order to obtain lower-costing deposits, generate fee income, and originate commercial business loans. The success of this initiative is dependent on developing additional product offerings, and building relationships to obtain the deposits and loans. There can be no assurance that we will be able to successfully implement our business strategy with respect to this initiative.

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The FDIC’s Adopted Restoration Plan and the Related Increased Assessment Rate Schedule May Have a Material Effect on Our Results of Operations

On October 19, 2010, the FDIC Board adopted a new restoration plan to ensure that the DIF reserve ratio reaches 1.35% by September 30, 2020, as required by the Dodd-Frank Act, rather than 1.15% by the end of 2016 (as required under the prior restoration plan).  Among other things, the new restoration plan provides that the FDIC will forego the uniform three basis point increases in initial assessment rates that was previously scheduled to take effect on January 1, 2011 and maintains the current assessment rate schedule.  The FDIC intends to pursue further rulemaking regarding the requirement under the Dodd-Frank Act that the FDIC offset the effect on institutions with less than $10 billion in assets (such as us) of the requirement that the reserve ratio reach 1.35% by September 30, 2020, so that more of the cost of raising the reserve ratio to 1.35% will be borne by institutions with more than $10 billion in assets.  In this connection, the FDIC Board approved a rule that implemented a provision in the Dodd-Frank Act that changes the assessment base from one based on domestic deposits (as it has been since 1935) to one based on total average assets less Tier 1 Capital (as defined for regulatory purposes).  The FDIC also lowered assessment rates. Effective April 1, 2011, the new assessment base is based on assets rather than domestic deposits which is a much larger assessment base than in the past.  The range of the base assessment rates is 2.5 to 45 basis points, whereas the prior range was 7 to 77.5 basis points.  In addition, the FDIC Board approved setting the designated DIF reserve ratio at 2% as a long-term, minimum goal, adopt a lower assessment rate schedule when the reserve ratio reaches 1.15% and, in lieu of FDIC dividends, adopt progressively lower assessment rate schedules when the reserve ratio reaches 2% and 2.5%.  Another rule approved by the FDIC Board, which replaces a proposed rule approved by the FDIC on April 13, 2010, would revise the deposit insurance assessment system for insured depository institutions with over $10 billion in assets.  This rule is not directly applicable to us.

There is no guarantee that the rules described above be sufficient for the DIF to meet its funding requirements, which may necessitate further rulemaking, special assessments or increases in deposit insurance premiums.  Any such future rulemaking, assessments or increases could have a further material impact on our results of operations.

A Failure in or Breach of Our Operational or Security Systems or Infrastructure, or Those of Our Third Party Vendors and Other Service Providers, Including as a Result of Cyber Attacks, Could Disrupt Our Business, Result in the Disclosure or Misuse of Confidential or Proprietary Information, Damage Our Reputation, Increase Our Costs and Cause Losses.

We depend upon our ability to process, record and monitor our client transactions on a continuous basis. As client, public and regulatory expectations regarding operational and information security have increased, our operational systems and infrastructure must continue to be safeguarded and monitored for potential failures, disruptions and breakdowns. Our business, financial, accounting and data processing systems, or other operating systems and facilities, may stop operating properly or become disabled or damaged as a result of a number of factors, including events that are wholly or partially beyond our control. For example, there could be electrical or telecommunications outages; natural disasters such as earthquakes, tornadoes and hurricanes; disease pandemics; events arising from local or larger scale political or social matters, including terrorist acts; and, as described below, cyber-attacks. Although we have business continuity plans and other safeguards in place, our business operations may be adversely affected by significant and widespread disruption to our physical infrastructure or operating systems that support our business and clients.

Information security risks for financial institutions such as ours have generally increased in recent years in part because of the proliferation of new technologies, the use of the internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists, activists and other external parties. As noted above, our operations rely on the secure processing, transmission and storage of confidential information in our computer systems and networks. Our business relies on our digital technologies, computer and email systems, software and networks to conduct its operations. In addition, to access our products and services, our clients may use personal smartphones, tablet PC’s, personal computers and other mobile devices that are beyond our control systems. Although we have information security procedures and controls in place, our technologies, systems, networks and our clients’ devices may become the target of cyber-attacks or information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our or our clients’ confidential, proprietary and other information, or otherwise disrupt our or our clients’ or other third parties’ business operations.

Third parties with whom we do business or that facilitate our business activities, including financial intermediaries or vendors that provide services or security solutions for our operations, could also be sources of operational and information security risk to us, including from breakdowns or failures of their own systems or capacity constraints.

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Although to date we have not experienced any material losses relating to cyber-attacks or other information security breaches, there can be no assurance that we will not suffer such losses in the future. Our risk and exposure to these matters remains heightened because of the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of our controls, processes and practices designed to protect our systems, computers, software, data and networks from attack, damage or unauthorized access remain a focus for us. As threats continue to evolve, we may be required to expend additional resources to continue to modify or enhance our protective measures or to investigate and remediate information security vulnerabilities.

Disruptions or failures in the physical infrastructure or operating systems that support our business and clients, or cyber-attacks or security breaches of the networks, systems or devices that our clients use to access our products and services could result in client attrition, regulatory fines, penalties or intervention, reputational damage, reimbursement or other compensation costs and/or additional compliance costs, any of which could materially and adversely affect our financial condition or results of operations.

We May Experience Increased Delays in Foreclosure Proceedings

Foreclosure proceedings face increasing delays.  While we cannot predict the ultimate impact of any delay in foreclosure sales, we may be subject to additional borrower and non-borrower litigation and governmental and regulatory scrutiny related to our past and current foreclosure activities.  Delays in foreclosure sales, including any delays beyond those currently anticipated could increase the costs associated with our mortgage operations and make it more difficult for us to prevent losses in our loan portfolio.

We May Need to Recognize Other-Than-Temporary Impairment Charges in the Future

We conduct a periodic review and evaluation of the securities portfolio to determine if the decline in the fair value of any security below its cost basis is other-than-temporary. Factors which we consider in our analysis include, but are not limited to, the severity and duration of the decline in fair value of the security, the financial condition and near-term prospects of the issuer, whether the decline appears to be related to issuer conditions or general market or industry conditions, our intent and ability to retain the security for a period of time sufficient to allow for any anticipated recovery in fair value and the likelihood of any near-term fair value recovery.  We generally view changes in fair value caused by changes in interest rates as temporary. However, we have recorded other-than-temporary impairment charges on some securities in our portfolio.  If we deem such decline to be other-than-temporary, the security is written down to a new cost basis and the resulting loss is charged to earnings as a component of non-interest income.

We continue to monitor the fair value of our securities portfolio as part of our ongoing other-than-temporary impairment evaluation process.  There can be no assurance that we will not need to recognize other-than-temporary impairment charges related to securities in the future.

The Current Economic Environment Poses Significant Challenges for us and Could Adversely Affect our Financial Condition and Results of Operations

We are operating in a challenging and uncertain economic environment, including generally uncertain national conditions and local conditions in our markets.  While the national and local economies showed signs of improvement since the middle of 2010, unemployment has remained at elevated levels. The housing market in the United States continued to see a significant slowdown during 2009, and foreclosures of single family homes rose to levels not seen in the prior five years.  The housing market has shown improvement in 2013, but has not returned to pre-recession levels. Financial institutions continue to be affected by sharp declines in the real estate market and constrained financial markets.  While we are taking steps to decrease and limit our exposure to residential mortgage loans, home equity loans and lines of credit, and construction and land loans, we nonetheless retain direct exposure to the residential and commercial real estate markets, and we are affected by these events.  Further declines in real estate values, home sales volumes and financial stress on borrowers as a result of the uncertain economic environment, including job losses, could have an adverse effect on our borrowers or their customers, which could adversely affect our financial condition and results of operations.  The overall deterioration in economic conditions has subjected us to increased regulatory scrutiny.  In addition, further deterioration in national or local economic conditions in our markets could drive losses beyond that which is provided for in our allowance for loan losses and result in the following other consequences: loan delinquencies, problem assets and foreclosures may increase; demand for our products and services may decline; deposits may decrease, which would adversely impact our liquidity position; and collateral for our loans, especially real estate, may decline in value, in turn reducing customers’ borrowing power, and reducing the value of assets and collateral associated with our existing loans.  These same factors have caused delinquencies to increase for the mortgages which are the collateral for the mortgage-backed securities that we hold in our investment portfolio. Combining the increased delinquencies with liquidity problems in the market has resulted in a decline in the market value of our investments in mortgage-backed securities. There can be no assurance that the decline in the market value of these investments will not cause us to record an other-than-temporary impairment charge in our financial statements.

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We May Not Pay Dividends on Our Common Stock

Holders of shares of our common stock are only entitled to receive such dividends as our Board of Directors may declare out of funds legally available for such payments. Although we have historically declared cash dividends on our common stock, we are not required to do so and may reduce or eliminate our common stock dividend in the future. This could adversely affect the market price of our common stock.

Goodwill Recorded as a Result of Acquisitions Could Become Impaired, Negatively Impacting Our Earnings and Capital

Goodwill is presumed to have an indefinite life and is tested annually, or when certain conditions are met, for impairment. If the fair value of the reporting unit is greater than the goodwill amount, no further evaluation is required and no impairment is recorded. If the fair value of the reporting unit is less than the goodwill amount, further evaluation would be required to compare the fair value of the reporting unit to the goodwill amount and determine if a write down is required. Management views the Company as operating as a single unit - a community bank.  At December 31, 2014, we had goodwill with a carrying amount of $16.1 million.  Declines in the fair value of the reporting unit may result in a future impairment charge.  Any such impairment charge could have a material effect on our earnings and capital.

We May Not Fully Realize the Expected Benefit of Our Deferred Tax Assets

At December 31, 2014, we have a deferred tax asset of $29.8 million. This represents the anticipated federal, state and local tax benefits expected to be realized in future years upon the utilization of the underlying tax attributes comprising this balance. In order to use the future benefit of these deferred tax assets, we will need to report taxable income for federal, state and local tax purposes.  Although we have reported taxable income for federal, state, and local tax purposes in each of the past three years, there can be no assurance that this will continue in the future.

Item 1B.    Unresolved Staff Comments.

None.

Item 2.    Properties.

At December 31, 2014, the Bank conducted its business through 17 full-service offices and its internet branch, “iGObanking.com®”.

Flushing Financial Corporation neither owns nor leases any property but instead uses the premises and equipment of the Bank.

Item 3.     Legal Proceedings.

We are involved in various legal actions arising in the ordinary course of our business which, in the aggregate, involve amounts which are believed by management to be immaterial to our financial condition, results of operations and cash flows.

Item 4.     Mine Safety Disclosures.

Not applicable

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PART II

Item 5.    Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Flushing Financial Corporation Common Stock is traded on the NASDAQ Global Select Market® under the symbol “FFIC.”  As of December 31, 2014, we had approximately 740 shareholders of record, not including the number of persons or entities holding stock in nominee or street name through various brokers and banks.  Our stock closed at $20.27 on December 31, 2014.  The following table shows the high and low sales price of the Common Stock and the dividends declared on the Common Stock during the periods indicated.  Such prices do not necessarily reflect retail markups, markdowns, or commissions.  (See Note 13 of Notes to Consolidated Financial Statements in Item 8 of this Annual Report for dividend restrictions.)

	2014						2013
	High		Low		Dividend		High		Low		Dividend
First Quarter	$	21.91	$	19.09	$	0.15	$	17.10	$	15.02	$	0.13
Second Quarter		21.75		18.83		0.15		16.87		15.02		0.13
Third Quarter		21.37		18.18		0.15		19.88		16.40		0.13
Fourth Quarter		20.84		17.70		0.15		21.70		17.96		0.13

The following table sets forth information regarding the shares of common stock repurchased by us during the quarter ended December 31, 2014:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
October 1 to October 31, 2014		-	$	-		-		888,400
November 1 to November 30, 2014		163,201		19.76		163,201		725,199
December 1 to December 31, 2014		90,000		19.54		90,000		635,199
Total		253,201	$	19.68		253,201

During the year ended December 31, 2014, the Company completed the common stock repurchase program that was approved by the Company’s Board of Directors on May 22, 2013.  On August 19, 2014, the Company announced the authorization by the Board of Directors of a new common stock repurchase program, which authorizes the purchase of up to 1,000,000 shares of its common stock.  During the years ended December 31, 2014 and 2013, the Company repurchased 914,671 shares and 836,092 shares, respectively, of the Company’s common stock at an average cost of $19.29 per share and $15.73 per share, respectively.  At December 31, 2014, 635,199 shares remain to be repurchased under the current stock repurchase program. Stock will be purchased under the current stock repurchase program from time to time, in the open market or through private transactions subject to market conditions and at the discretion of the management of the Company. There is no expiration or maximum dollar amount under this authorization.

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The following table sets forth securities authorized for issuance under all equity compensation plans of the Company at December 31, 2014:

	(a) Number of securities to be issued upon exercise of outstanding options, warrants and rights		(b) Weighted-average exercise price of outstanding options, warrants and rights		(c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)
Equity compensation plans approved by security holders		154,915	$	15.19		1,097,200
Equity compensation plans not approved by security holders		-		-		-
		154,915	$	15.19		1,097,200

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Stock Performance Graph

The following graph shows a comparison of cumulative total stockholder return on the Company’s common stock since December 31, 2009 with the cumulative total returns of a broad equity market index as well as comparative published industry indices. The broad equity market index chosen was the Nasdaq Composite. The comparative published industry indices chosen were the SNL Bank $1 Billion to $5 Billion in Assets Index and the SNL Mid-Atlantic Bank Index. The SNL Mid-Atlantic Bank Index was chosen for inclusion in the Company’s Stock Performance Graph because the Company believes it provides valuable comparative information reflecting the Company’s geographic peer group. The SNL Bank $1 Billion to $5 Billion in Assets Index was chosen for inclusion in the Company’s Stock Performance Graph because it uses a broader group of banks and therefore more closely reflects the Company’s size. The Company believes that both geographic area and size are important factors in analyzing the Company’s performance against its peers. The graph below reflects historical performance only, which is not indicative of possible future performance of the common stock.

The total return assumes $100 invested on December 31, 2009 and all dividends reinvested through the end of the Company’s fiscal year ended December 31, 2014. The performance graph above is based upon closing prices on the trading date specified.

			Period Ending
Index	12/31/09		12/31/10		12/31/11		12/31/12		12/31/13		12/31/14
Flushing Financial Corporation		100.00		129.69		122.02		153.83		213.87		215.82
NASDAQ Composite		100.00		118.15		117.22		138.02		193.47		222.16
SNL Bank $1 Billion to $5 Billion		100.00		113.35		103.38		127.47		185.36		193.81
SNL Mid-Atlantic Bank		100.00		116.66		87.64		117.40		158.25		172.41

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Item 6.    Selected Financial Data.

At or for the years ended December 31,	2014			2013			2012			2011			2010
	(Dollars in thousands, except per share data)
Selected Financial Condition Data
Total assets	$	5,077,013		$	4,721,501		$	4,451,416		$	4,287,949		$	4,324,745
Loans, net		3,785,277			3,402,402			3,203,017			3,198,537			3,248,630
Securities available for sale		973,310			1,017,790			949,566			812,530			804,189
Deposits		3,508,598			3,232,780			3,015,193			3,146,245			3,190,610
Borrowed funds		1,056,492			1,012,122			948,405			685,139			708,683
Total stockholders' equity		456,247			432,532			442,365			416,911			390,045
Common stockholders' equity		456,247			432,532			442,365			416,911			390,045
Book value per common share (1)	$	15.52		$	14.36		$	14.39		$	13.49		$	12.48
Selected Operating Data
Interest and dividend income	$	197,128		$	200,526		$	213,714		$	224,498		$	229,628
Interest expense		54,741			54,863			63,275			76,723			91,767
Net interest income		142,387			145,663			150,439			147,775			137,861
Provision (benefit) for loan losses		(6,021	)		13,935			21,000			21,500			21,000
Net interest income after provision for loan losses		148,408			131,728			129,439			126,275			116,861
Non-interest income:
Net gains on sales of securities and loans		2,875			3,021			69			511			7
Other-than-temporary credit impairment charge on securities		-			(1,419	)		(776	)		(1,578	)		(2,045	)
Net (loss) gain from fair value adjustments		(2,568	)		(2,521	)		55			1,960			47
Other income		9,936			10,475			9,717			9,388			10,291
Total non-interest income		10,243			9,556			9,065			10,281			8,300
Non-interest expense		85,839			80,576			82,326			77,739			70,385
Income before income tax provision		72,812			60,708			56,178			58,817			54,776
Income tax provision		28,573			22,956			21,847			23,469			15,941
Net income	$	44,239		$	37,752		$	34,331		$	35,348		$	38,835
Basic earnings per common share (2)	$	1.49		$	1.26		$	1.13		$	1.15		$	1.28
Diluted earnings per common share (2)	$	1.48		$	1.26		$	1.13		$	1.15		$	1.28
Dividends declared per common share (2)	$	0.60		$	0.52		$	0.52		$	0.52		$	0.52
Dividend payout ratio		40.3	%		41.3	%		46.0	%		45.2	%		40.6	%

(Footnotes on the following page)

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At or for the years ended December 31,	2014			2013			2012			2011			2010
Selected Financial Ratios and Other Data
Performance ratios:
Return on average assets		0.91	%		0.82	%		0.79	%		0.82	%		0.92	%
Return on average equity		9.82			8.73			7.99			8.76			10.32
Average equity to average assets		9.31			9.45			9.83			9.36			8.89
Equity to total assets		8.99			9.16			9.94			9.72			9.02
Interest rate spread		2.98			3.25			3.50			3.46			3.27
Net interest margin		3.11			3.37			3.65			3.61			3.43
Non-interest expense to average assets		1.77			1.76			1.88			1.80			1.66
Efficiency ratio		54.40			50.64			50.73			49.18			47.37
Average interest-earning assets to average interest-bearing liabilities		1.11	x		1.10	x		1.09	x		1.08	x		1.07	x
Regulatory capital ratios: (3)
Core capital (well capitalized = 5%)		9.63	%		9.48	%		9.62	%		9.63	%		9.18	%
Tier 1 risk-based capital (well capitalized =6%)		13.87			14.59			14.38			14.26			13.07
Total risk-based capital (well capitalized =10%)		14.60			15.63			15.43			15.32			13.98
Asset quality ratios:
Non-performing loans to gross loans (4)		0.90	%		1.43	%		2.79	%		3.65	%		3.44	%
Non-performing assets to total assets (5)		0.80			1.14			2.21			2.87			2.75
Net charge-offs to average loans		0.02			0.41			0.64			0.59			0.42
Allowance for loan losses to gross loans		0.66			0.93			0.97			0.94			0.85
Allowance for loan losses to total non-performing assets (5)		61.94			59.04			31.59			24.63			23.31
Allowance for loan losses to total non-performing loans (4)		73.40			64.89			34.62			25.84			24.71
Full-service customer facilities		17			17			17			16			15

(1) Calculated by dividing common stockholders’ equity of $456.2 million and $432.5 million at December 31, 2014 and 2013, respectively, by 29,403,823 and 30,123,252 shares outstanding at December 31, 2014 and 2013, respectively. Common stockholders’ equity is total stockholders’ equity less the liquidation preference value of preferred shares outstanding.

(2) The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per share.

(3) Represents the Bank’s capital ratios, which exceeded all minimum regulatory capital requirements during the periods presented.

(4) Non-performing loans consist of non-accrual loans and loans delinquent 90 days or more that are still accruing.

(5) Non-performing assets consist of non-performing loans, real estate owned and non-performing investment securities.

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Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

As used in this discussion and analysis, the words “we,” “us,” “our” and the “Company” are used to refer to Flushing Financial Corporation and our consolidated subsidiaries, including the surviving entity of the merger (the “Merger”) on February 28, 2013 of our wholly owned subsidiary, Flushing Savings Bank, FSB (the “Savings Bank”) with and into the Savings Bank’s wholly owned subsidiary Flushing Commercial Bank (the “Commercial Bank”). The surviving entity of the Merger was the Commercial Bank, whose name has been changed to “Flushing Bank”. References herein to the “Bank” mean the Savings Bank (including its wholly owned subsidiary, the Commercial Bank) prior to the Merger and the surviving entity after the Merger.

General

We are a Delaware corporation organized in May 1994. The Savings Bank was organized in 1929 as a New York State-chartered mutual savings bank. In 1994, the Savings Bank converted to a federally chartered mutual savings bank and changed its name from Flushing Savings Bank to Flushing Savings Bank, FSB. The Savings Bank converted from a federally chartered mutual savings bank to a federally chartered stock savings bank in 1995. On February 28, 2013, in the Merger, the Savings Bank merged with and into the Commercial Bank, with the Commercial Bank as the surviving entity. Pursuant to the Merger, the Commercial Bank’s charter was changed to a New York State full-service commercial bank charter, and its name was changed to Flushing Bank. Also in connection with the Merger, Flushing Financial Corporation became a bank holding company. We do not anticipate any significant changes to our operations or services as a result of the Merger.

On July 21, 2011, as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Savings Bank’s primary regulator became the Office of the Comptroller of the Currency (“OCC”).  Upon completion of the Merger, the Bank’s primary regulator became the New York State Department of Financial Services (“NYSDFS”), (formerly the New York State Banking Department), and its federal regulator became the Federal Deposit Insurance Corporation (“FDIC”). The Bank’s deposits are insured to the maximum allowable amount by the FDIC.  The Bank owns three subsidiaries: Flushing Preferred Funding Corporation, Flushing Service Corporation, and FSB Properties Inc.

Flushing Financial Corporation also owns Flushing Financial Capital Trust II, Flushing Financial Capital Trust III, and Flushing Financial Capital Trust IV (the “Trusts”), which are special purpose business trusts formed during 2007 to issue a total of $60.0 million of capital securities, and $1.9 million of common securities (which are the only voting securities). Flushing Financial Corporation owns 100% of the common securities of the Trusts. The Trusts used the proceeds from the issuance of these securities to purchase junior subordinated debentures from Flushing Financial Corporation. The Trusts are not included in our consolidated financial statements as we would not absorb the losses of the Trusts if losses were to occur.

The following discussion of financial condition and results of operations includes the collective results of the Flushing Financial Corporation and its subsidiaries (collectively, the “Company”), but reflects principally the Bank’s activities. Management views the Company as operating as a single unit - a community bank. Therefore, segment information is not provided.

The Bank has a business banking unit. Our business strategy includes a transition from a traditional thrift to a more “commercial-like” banking institution by focusing on the development of a full complement of commercial business deposit, loan and cash management products. As of December 31, 2014, the business banking unit had $461.5 million in gross loans outstanding and $134.6 million of customer deposits.

The Bank has an internet branch, iGObanking.com®, which provides access to consumers in markets outside our geographic locations. Accounts can be opened online at www.iGObanking.com or by mail.  The internet branch does not currently accept loan applications.  As of December 31, 2014, the internet branch had $281.6 million of customer deposits.

The Savings Bank formed a wholly owned subsidiary, Flushing Commercial Bank, a New York State-chartered commercial bank, for the limited purpose of providing banking services to public entities including counties, cities, towns, villages, school districts, libraries, fire districts and the various courts throughout the New York City metropolitan area. The Commercial Bank was formed in response to New York State law, which requires that municipal deposits and state funds must be deposited into a bank or trust company as defined in New York State law. The Savings Bank was not considered an eligible bank or trust company for this purpose. On February 28, 2013, in the Merger, the Savings Bank merged with and into the Commercial Bank, with the Commercial Bank as the surviving entity. Pursuant to the Merger, the Commercial Bank’s charter was changed to a full-service New York State commercial bank charter, and its name was changed to Flushing Bank.

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The Merger was the result of the combination of two entities under common control, and in accordance with ASC 805-50-30-5, the Bank measured the recognized assets and liabilities transferred at their carrying amounts (historical cost) for this transaction.

Overview

Our principal business is attracting retail deposits from the general public and investing those deposits together with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential properties, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans, primarily for residential properties; (3) Small Business Administration (“SBA”) loans and other small business loans;  (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. We also originate certain other consumer loans including overdraft lines of credit. Our results of operations depend primarily on net interest income, which is the difference between the income earned on its interest-earning assets and the cost of our interest-bearing liabilities. Net interest income is the result of our interest rate margin, which is the difference between the average yield earned on interest-earning assets and the average cost of interest-bearing liabilities, adjusted for the difference in the average balance of interest-earning assets as compared to the average balance of interest-bearing liabilities. We also generate non-interest income from loan fees, service charges on deposit accounts, mortgage servicing fees, and other fees, income earned on Bank Owned Life Insurance (“BOLI”), dividends on Federal Home Bank of New York (“FHLB-NY”) stock and net gains and losses on sales of securities and loans. Our operating expenses consist principally of employee compensation and benefits, occupancy and equipment costs, other general and administrative expenses and income tax expense. Our results of operations also can be significantly affected by our periodic provision for loan losses and specific provision for losses on real estate owned.

Management Strategy. Our strategy is to continue our focus on being an institution serving consumers, businesses, and governmental units in our local markets. In furtherance of this objective, we intend to:

· continue our emphasis on the origination of multi-family residential mortgage loans, commercial business loans and commercial real estate mortgage loans;

· continue to transition the balance sheet to a more ‘commercial-like’ banking institution;

· increase our commitment to the multi-cultural marketplace, with a particular focus on the Asian community in Queens;

· maintain asset quality;

· manage deposit growth and maintain a low cost of funds through

§ business banking deposits

§ personal accounts,

§ municipal deposits through government banking, and

§ new customer relationships via iGObanking.com®;

· cross sell to lending and deposit customers;

· take advantage of market disruptions to attract talent and customers from competitors;

· manage interest rate risk and capital: and

· manage enterprise-wide risk.

There can be no assurance that we will be able to effectively implement this strategy. Our strategy is subject to change by the Board of Directors.

Multi-Family Residential, Commercial Business and Commercial Real Estate Lending.  In recent years, we have emphasized the origination of higher-yielding multi-family residential mortgage loan. During 2014, we continued to focus on the origination of multi-family properties and increased originations of business loans with a full banking relationship and commercial mortgage lending, as our strategic plan included reentering these markets. We continued to deemphasize one-to-four family – mixed-use property and construction lending. We expect to continue this emphasis on higher-yielding multi-family residential mortgage loans, business loans with a full banking relationship and commercial mortgage lending, while we continue to deemphasize one-to-four family mixed-use property and construction lending.

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The following table shows loan originations and purchases during 2014, and loan balances as of December 31, 2014.

	Loan Originations and Purchases		Loan Balances December 31, 2014		Percent of Gross Loans
	(Dollars in thousands)
Multi-family residential	$	420,978	$	1,923,460		50.64	%
Commercial real estate		179,848		621,569		16.36
One-to-four family ―mixed-use property		50,070		573,779		15.10
One-to-four family ― residential		24,727		187,572		4.94
Co-operative apartment		170		9,835		0.26
Construction		1,566		5,286		0.14
Small Business Administration		1,611		7,134		0.19
Taxi Medallion		14,431		22,519		0.59
Commercial Business and Other		264,765		447,500		11.78
Total	$	958,166	$	3,798,654		100.00	%

At December 31, 2014, multi-family residential, commercial real estate, construction and one-to-four family mixed-use property mortgage loans, totaled 82.2% of our gross loans. Our concentration in these types of loans has increased the overall level of credit risk inherent in our loan portfolio. The greater risk associated with multi-family, commercial real estate, construction and one-to-four family mixed-use property mortgage loans could require us to increase our provisions for loan losses and to maintain an allowance for loan losses as a percentage of total loans in excess of the allowance currently maintained.

Continue to Transition the Balance Sheet to a More ‘Commercial-like’ Banking Institution. We have an established business banking unit staffed with a team of experienced commercial bankers. We have developed a complement of deposit, loan and cash management products to support this initiative, and expanded these product offerings. The business banking unit is responsible for building business relationships in order to obtain lower-costing deposits, generate fee income, and originate commercial business loans. Building these business relationships could provide us with a lower-costing source of funds and higher-yielding adjustable-rate loans, which would help us manage our interest-rate risk. On February 28, 2013, in the Merger, the Savings Bank merged with and into the Commercial Bank, with the Commercial Bank as the surviving entity. Pursuant to the Merger, the Commercial Bank’s charter was changed to a full-service New York State commercial bank charter, and its name was changed to Flushing Bank.

Increase Our Commitment to the Multi-Cultural Marketplace, with a Particular Focus on the Asian Community in Queens. Our branches are all located in the New York City metropolitan area with particular concentration in the borough of Queens.  Queens in particular exhibits a high level of ethnic diversity.  An important element of our strategy is to service the multi-ethnic consumer and business.  We have a particular concentration in the Asian communities- among them Chinese and Korean populations.  Both groups are noted for high levels of savings, education and entrepreneurship.  In order to service these and other important ethnic groups in our market, our staff speaks more than 30 languages. We have an Asian advisory board to help broaden our link to the community by providing guidance and fostering awareness of our active role in the local community.  Our focus on the Asian community in Queens, where we have four branches, has resulted in us obtaining approximately $500 million in deposits in these branches.  We also have over $400 million of loans and lines of credit outstanding to borrowers in the Asian community.

Maintain Asset Quality.  By adherence to our conservative underwriting standards, we have been able to minimize net losses from impaired loans with net charge-offs of $0.7 million and $13.3 million for the years ended December 31, 2014 and 2013, respectively. We seek to maintain our loans in performing status through, among other things, disciplined collection efforts, and consistently monitoring non-performing assets in an effort to return them to performing status. To this end, we review the quality of our loans and report to the Loan Committee of the Board of Directors of the Bank on a monthly basis. We sold 32 delinquent mortgage loans totaling $15.8 million, 72 delinquent mortgage loans totaling $33.4 million and 77 delinquent mortgage loans totaling $44.2 million during the years ended December 31, 2014, 2013 and 2012, respectively. We recorded net recoveries of $0.4 and net charge-offs of $4.7 million and $5.7 million to the allowance for loan losses for the non-performing loans that were sold during 2014, 2013 and 2012, respectively.  We realized gross gains of $54,000, $134,000 and $21,000 on the sale of non-performing mortgage loans for the years ended December 31, 2014, 2013 and 2012, respectively.  We realized gross losses of $81,000 and $69,000 on the sale of non-performing mortgage loans for the years ended December 31, 2013 and 2012, respectively. We did not record any gross losses for the year ended December 31, 2014. There can be no assurances that we will continue this strategy in future periods, or if continued, we will be able to find buyers to pay adequate consideration.  Non-performing assets amounted to $40.5 million and $53.8 million at December 31, 2014 and 2013, respectively. Non-performing assets as a percentage of total assets were 0.80% and 1.14% at December 31, 2014 and 2013, respectively.

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Manage Deposit Growth and Maintain Low Cost of Funds. We have a relatively stable retail deposit base drawn from our market area through our full-service offices. Although we seek to retain existing deposits and maintain depositor relationships by offering quality service and competitive interest rates to our customers, we also seek to keep deposit growth within reasonable limits and our strategic plan. In order to implement our strategic plan, we have a business banking operation that we designed specifically to develop full business relationships thereby bringing in lower cost checking and money market deposits. At December 31, 2014, deposits balances in the business sector are $134.6 million. We also have an internet branch, “iGObanking.com®”, as a division of the Bank, to compete for deposits from sources outside the geographic footprint of our full-service offices. In creating iGObanking.com®, our strategy is to reduce our reliance on wholesale borrowings and reduce our funding costs. Deposit balances in iGObanking.com® were $281.6 million at December 31, 2014, at rates lower than our borrowings. We have a government banking division, which prior to the Merger operated as the Commercial Bank, as an additional source of deposits. At December 31, 2014, deposits in our government banking division totaled $891.9 million at rates below our average cost of funds.  We also obtain deposits through brokers and the CDARS® and ICS network. Management intends to balance its goal to maintain competitive interest rates on deposits while seeking to manage its overall cost of funds to finance its strategies. We generally rely on our deposit base as our principal source of funding. In addition, the Bank is a member of the FHLB-NY, which provides us with a source of borrowing. We also utilize reverse purchase agreements, established with other financial institutions. During 2014, we realized an increase in Due to depositors of $272.9 million, as core deposits increased $88.1 million while certificates of deposit increased $184.9 million. At the same time our borrowed funds increased by $44.4 million as we looked to extend the maturities of our funding.

Cross Sell to Lending and Deposit Customers. A significant portion of our lending and deposit customers do not have both their loans and deposits with us. We intend to continue to focus on obtaining additional deposits from our lending customers and originating additional loans to our deposit customers. Product offerings were expanded and are expected to be further expanded to accommodate perceived customer demands. In addition, specific employees are assigned responsibilities of generating these additional deposits and loans by coordinating efforts between lending and deposit gathering departments.

Take Advantage of Market Disruptions to Attract Talent and Customers From Competitors. The New York City market place has been dominated by large institutions, many of which recently have run into difficult situations due to the recessionary environment.  During this time period we have been able to attract talent from such large commercial banks. That talent has brought with it significant business relationships. We have been able to see a larger number of strong companies that have been caught in a retrenchment by their existing large institution. We anticipate this environment remaining for some period of time.

We have in the past increased growth through acquisitions of financial institutions and branches of other financial institutions, and will continue to pursue growth through acquisitions that are, or are expected to be within a reasonable time frame, accretive to earnings, as well as evaluating the feasibility of opening additional branches.  We have in the past opened new branches. We plan to continue to seek and review potential acquisition opportunities that complement our current business, are consistent with our strategy to build a bank that is focused on the unique personal and small business banking needs of the multi-ethnic communities we serve.

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Manage Interest Rate Risk and Capital. We seek to manage our interest rate risk by actively reviewing the repricing and maturities of our interest rate sensitive assets and liabilities.  The mix of loans we originate (fixed or ARM) is determined in large part by borrowers’ preferences and prevailing market conditions.  We seek to manage the interest rate risk of our loan portfolio by actively managing our security portfolio and borrowings.  By adjusting the mix of fixed and adjustable rate securities, as well as the maturities of the securities, we have the ability to manage the combined interest rate sensitivity of our assets.  Additionally, we seek to balance the interest rate sensitivity of our assets by managing the maturities of our liabilities.  The Bank faces several minimum capital requirements imposed by federal regulation.  These requirements limit the dividends the Bank is allowed to pay, including the payment of dividends to Flushing Financial Corporation, and can limit the annual growth of the Bank.

Manage Enterprise-Wide Risk. We identify measure and attempt to mitigate risks that affect, or have the potential to affect, our business. Due to the economic crisis and resulting increase in government regulation, there is greater demand for us to devote significant resources to risk management. In April 2010, a seasoned risk officer was hired to provide executive risk leadership, and an enterprise-wide risk management program was implemented. Several enterprise risk management analytical products have been implemented which include key risk indicators. Our management of enterprise-wide risk enables us to recognize and monitor risks and establish procedures to disseminate the risk information across our organization and to our Board of Directors. The objective is to have a robust and focused risk management process capable of identifying and mitigating emerging threats to the Bank’s safety and soundness.

 Trends and Contingencies.  Our operating results are significantly affected by national and local economic and competitive conditions, including changes in market interest rates, the strength of the local economy, government policies and actions of regulatory authorities. As short-term interest rates declined from 2008 through 2014, we remained strategically focused on the origination of multi-family residential mortgages and to a lesser extent, commercial real estate and one-to-four family mixed-use property mortgage loans. However, recently we have increased our emphasis on the origination and purchase of business loans with full banking relationships and commercial real estate loans. As a result of this strategy, we were able to continue to achieve a higher yield on our mortgage portfolio than we would have otherwise experienced.

The New York City metropolitan area, our primary market for lending, was generally considered to be in a recession from December 2007 through the middle of 2009.  In the New York City metropolitan area, building permits for one-to-four family residential properties, multi-family residential properties, and commercial properties all declined over this time period to historically low levels. Building permits issued in the New York metropolitan area have increased over the past several years. The home price index for the New York City metropolitan area declined from the beginning of 2007 to the end of 2012 by approximately 23.7%, but has increased 7.0% from 2012 through 2014. The value of multi-family and commercial properties showed similar price movements.

Building permits for one-to-four family residential properties, multi-family residential properties, and commercial properties all declined over this time period to historically low levels. This resulted in increased unemployment and declining property values. The majority of our impaired loans are income producing residential properties located in the New York City metropolitan market. Due to the low vacancy rates for these types of properties, they have retained more of their value, thereby reducing their loss content. While the national and local economies have improved since the middle of 2010, improvements in unemployment have lagged until recently when the unemployment rate decreased to 6.3% at December 2014 from 7.5% at December 2013, for the New York City region, according to the New York State Department of Labor. This slow improvement in the unemployment rate has resulted in the balance of our non-performing loans remaining at an elevated level, although non-performing loans declined in 2014, 2013 and 2012. Non-performing loans totaled $34.2 million, $49.0 million and $89.8 million at December 31, 2014, 2013 and 2012, respectively. While non-performing loans have remained elevated, we have not experienced a significant increase in foreclosed properties despite an extended foreclosure process in our market. The extended foreclosure process in our market is due to the high number of foreclosure actions filed in the court system in the counties for which we are seeking foreclosure on delinquent mortgage loans. We have not encountered significant issues with documentation relating to mortgages for which we are seeking foreclosure as we maintain custody of all loan documents and review them prior to providing them to our legal counsel to initiate the foreclosure action. The deterioration in the economy also resulted in an increase in net charge-offs from impaired loans, although improvement was seen in 2014 and 2013. Net charge-offs totaled $0.7 million, $13.3 million and $20.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. This improvement in net charge-offs allowed us to reduce the provision for loan losses to a benefit of $6.0 million for the year ended December 31, 2014, compared to a provision expense of $13.9 million and $21.0 million for the years ended December 31, 2013, and 2012, respectively. We cannot predict the effect of these economic conditions on the Company’s future financial condition or operating results.

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In addition, in response to the economic conditions in our market combined with the increase in non-performing loans, we began tightening our underwriting standards in 2008 to reduce the risk associated with lending.

The following changes were made in our underwriting standards since 2008 to reduce the risk associated with lending on income producing real estate properties:

§ When borrowers requested a refinance of an existing mortgage loan when they had acquired the property or obtained their existing loan within two years of the request, we generally required evidence of improvements to the property that increased the property value to support the additional funds and generally restricted the loan-to-value ratio for the new loan to 65% of the appraised value.

§ The debt coverage ratio was increased and the loan-to-value ratio decreased for income producing properties with fewer than ten units. This required the borrower to have an additional investment in the property than previously required and provided additional protection should rental units become vacant.

§ Borrowers who owned multiple properties were required to provide detail on all their properties to allow us to evaluate their total cash flow requirements. Based on this review, we may decline the loan application, or require a lower loan-to-value ratio and a higher debt coverage ratio.

§ Income producing properties with existing rents that were at or above the current market rent for similar properties were required to have a higher debt coverage ratio to provide protection should rents decline.

§ Borrowers purchasing properties were required to demonstrate they had satisfactory liquidity and management ability to carry the property should vacancies occur or increase.

The following changes were made in our underwriting standards since 2008 to reduce the risk on one-to-four family residential property mortgage loans and home equity lines of credit:

§ We discontinued originating home equity lines of credit without verifying the borrower’s income. This was done in two stages. Beginning in May 2008, we began verifying the borrower’s income when the home equity line of credit exceeded $100,000. Beginning in October 2009, we verified the income of all borrowers applying for a home equity line of credit.

§ We discontinued offering one-to-four family residential property mortgage loans to self-employed individuals based on stated income and verifiable assets in June 2010.

The following changes were made in our underwriting standards since 2008 to reduce the risk associated with business lending:

§ All borrowers obtaining a business loan were required to submit a complete financial information package, regardless of the amount of the loan. Previously, borrowers for SBA Express loans and other loans under $150,000 had been exempt from this requirement.

§ Background checks on all borrowers and guarantors for business loans were expanded to identify and review information in more public records, including a search for judgments, liens, negative press articles, and affiliations with other entities.

§ The guarantee of related business entities providing cash flow to the borrowing entity became required for business loans.

§ The allowable percentage of inventory and accounts receivable pledged as collateral for a business loan was reduced.

§ We established specific risk acceptance criteria for private not for profit schools.

Since 2008, we have reduced our focus on commercial real estate and one-to-four family mixed-use residential property mortgage loans, which represented $300.6 million, or 50%, of our mortgage loan originations and purchases in 2008 compared to $229.9 million, or 24%, in 2014. In addition to reducing our focus on commercial real estate lending, during that period we further reduced our origination of smaller commercial real estate properties. Recently, however, we have cautiously increased our focus on larger commercial real estate properties. We also reduced our focus on construction lending, which we reduced from $30.7 million in advances on existing loans in 2008 to $0.9 million in advances on existing loans in 2014, and new construction loan approvals from $27.2 million in 2008 to $0.7 million in 2014. We reduced our focus on these types of loans due to changes in market conditions, increasing delinquencies and losses incurred on delinquent loans associated with these types of loans.

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We also shifted our focus in multi-family lending to larger properties. Our review of delinquent multi-family mortgage loans revealed that the majority of our delinquent multi-family mortgage loans were on smaller properties with fewer rental units. We concluded that the more units a property had to rent, the less likely vacancies would cause a disruption in the property’s cash flow.

While we primarily rely on originating our own loans, we purchased $169.9 million of loans in 2014 compared to $10.2 million in 2013 and $3.5 million in 2012. We purchase loans when the loans complement our loan portfolio strategy. Loans purchased must meet our underwriting standards when they were originated.

The economic conditions we have experienced since the end of 2007 reduced loan demand from 2008 through 2012 in our market. In addition, the tightening of our underwriting standards and the shift in our lending focus also contributed to total loan originations and purchases remaining below pre-recession levels. Loan originations returned back to pre-recession levels in 2013, and in 2014 were a record $958.2 million, an increase of $122.2 million, or 14.6%, from $836.0 million in 2013.

During the three year period ended December 31, 2014, the allocation of our loan portfolio has remained fairly consistent. The majority of our loans are collateralized by real estate, which comprised 87.4% of our portfolio at December 31, 2014 compared to 88.5% at December 31, 2013 and 90.2% at December 31, 2012. Multi-family residential mortgage loans comprised 50.6%, 50.0% and 47.6% of our loan portfolio at December 31, 2014, 2013 and 2012, respectively. Commercial real estate mortgage loans comprised 16.4%, 15.0% and 16.0% of our loan portfolio at December 31, 2014, 2013 and 2012, respectively. One-to-four family mixed-use property mortgage loans comprised 15.1%, 17.4% and 19.8% of loan portfolio at December 31, 2014, 2013 and 2012, respectively. One-to-four family residential mortgage loans comprised 4.9%, 5.7% and 6.2% of loan portfolio at December 31, 2014, 2013 and 2012, respectively.

Due to depositors increased $272.9 million and $217.3 million in 2014 and 2013, respectively, compared to a decrease of $133.8 million in 2012.  Lower-costing core deposits increased $88.1 million, $349.6 million and $142.1 million in 2014, 2013 and 2012, respectively. Higher-costing certificates of deposit increased $184.9 million during 2014, compared to decreases of $132.3 million and $275.9 million during 2013 and 2012, respectively. Brokered deposits represented 21.8%, 16.0% and 17.3% of total deposits at December 31, 2014, 2013 and 2012, respectively.

Prevailing interest rates affect the extent to which borrowers repay and refinance loans. In a declining interest rate environment, the number of loan prepayments and loan refinancing tends to increase, as do prepayments of mortgage-backed securities. Call provisions associated with our investmentsin U.S. government agency and corporate securities may also adversely affect yield in a declining interest rate environment. Such prepayments and calls may adversely affect the yield of our loan portfolio and mortgage-backed and other securities as we reinvest the prepaid funds in a lower interest rate environment. However, we typically receive additional loan fees when existing loans are refinanced, which partially offsets the reduced yield on our loan portfolio resulting from prepayments. In periods of low interest rates, our level of core deposits also may decline if depositors seek higher-yielding instruments or other investments not offered by us, which in turn may increase our cost of funds and decrease our net interest margin to the extent alternative funding sources, are utilized. By contrast, an increasing interest rate environment would tend to extend the average lives of lower yielding fixed rate mortgages and mortgage-backed securities, which could adversely affect net interest income. In addition, depositors tend to open longer term, higher costing certificate of deposit accounts which could adversely affect our net interest income if rates were to subsequently decline. Additionally, adjustable rate residential mortgage loans and mortgage-backed securities generally contain interim and lifetime caps that limit the amount the interest rate can increase at re-pricing dates.

During the year ended December 31, 2014, we extended the term of 15 business loans totaling $30.8 million and 49 mortgage loans totaling $49.2 million, which we did not consider as non-performing loans nor troubled debt restructured. Each of these loans was extended in accordance with our lending policies, which required the loans to be fully underwritten, and that each of the borrowers is current as to payments. None of these borrowers was experiencing financial difficulties, and none received a below market interest rate or other favorable terms at the time the loans were extended.  Therefore, we did not consider these loans to be troubled debt restructured.

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We attempt to pursue the guarantor on all loans for which a loss has been incurred and for which a guarantee was obtained, when, after considering the benefits and costs, we have concluded we will be successful in recovering at least a portion of the loss we incurred. The success of this pursuit is based on the assets the guarantor holds when we obtain a judgment.

During 2014, we sought performance under guarantees on one business loan, seeking judgment of approximately $45,000. As of December 31, 2014, we had not received any recoveries on this business loan. However, during the year ended December 31, 2014, we realized recoveries of approximately $180,000 on business loans and $50,000 on real estate mortgage loans for which we sought judgments prior to 2014. During 2013, we sought performance under guarantees on 11 business loans, seeking judgments in excess of $2.8 million, and six real estate mortgage loans, seeking judgments in excess of $1.1 million. As of December 31, 2013, we had realized recoveries of less than $0.1 million on one business loan, and had not received any recoveries on the mortgage loans. In addition, during the year ended December 31, 2013, we realized recoveries of approximately $0.1 million on business loans and $0.1 million on real estate mortgage loans for which we sought judgments prior to 2013.

During 2014 our net interest margin declined 26 basis points to 3.11% for the year ended December 31, 2014 from 3.37% for the comparable period in 2013. This decrease in the net interest margin resulted in a $3.3 million decrease in net interest income to $142.4 million for the year ended December 31, 2014 from $145.7 million in 2013.  The decrease in the net interest margin for 2014 was primarily due to a decline in the yield of our interest-earning assets, partially offset by a reduction in our funding costs. The decline in the yield of our interest earning assets was primarily due to rates earned on new loans originated and securities purchased during 2014 being lower than the yield of the existing portfolio. During 2014, the average balance of total loans and total securities increased $263.2 million and $4.3 million, respectively, to $3,521.9 million and $1,020.0 million, respectively. During 2014, the average balance of borrowed funds increased by $40.6 million to $993.8 million compared to $953.2 million for 2013, while the cost of borrowed funds increased 10 basis points to 2.49% for the year ended December 31, 2014 from 2.39% in the comparable period in 2013. The increase in the cost of borrowed funds was primarily due to a $5.2 million prepayment penalty incurred from prepaying $66.9 million in long-term FHLB-NY advances at an average cost of 2.98% and $30.0 million in repurchase agreements at an average cost of 4.98% during the year ended December 31, 2014, partially offset by a $2.6 million prepayment penalty, resulting from the prepayment of $69.9 million in FHLB-NY advances at an average cost of 3.21% in 2013. The cost of certificates of deposit and NOW accounts decreased 19 basis points and seven basis points, respectively, for the twelve months ended December 31, 2014 from the prior year, while the cost of money market accounts and savings accounts increased 11 basis points and four basis points, respectively, for the twelve months ended December 31, 2014 from the prior year. The cost of money market accounts increased primarily due to our shifting Government NOW deposits to Insured Cash Sweep service (“ICS”) brokeredmoney market product, which does not require us to provide collateral. This is expected to allow us to invest our funds in higher yielding assets. The cost of savings accounts increased as we increased the rate we pay on savings accounts on our internet branch to attract additional deposits. This resulted in a decrease in the cost of due to depositors of 12 basis points to 0.97% for the twelve months ended December 31, 2014 from 1.09% for the twelve months ended December 31, 2013. As a result of these changes to our funding mix, and a favorable interest rate environment, we were able to reduce our cost of interest-bearing liabilities eight basis points to 1.32% for the year ended December 31, 2014 from 1.40% for the year ended December 31, 2013.

We are unable to predict the direction of future interest rate changes. Approximately 28% of our certificates of deposit accounts and borrowings reprice or mature during the next year, which could result in a decrease in the cost of our interest-bearing liabilities. Also, in a decreasing interest rate environment, mortgage loans and mortgage-backed securities with higher rates tend to prepay, which could result in a reduction in the yield on our interest-earning assets.

Interest Rate Sensitivity Analysis

A financial institution’s exposure to the risks of changing interest rates may be analyzed, in part, by examining the extent to which its assets and liabilities are “interest rate sensitive” and by monitoring the institution’s interest rate sensitivity “gap.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period. The interest rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that time period. A gap is considered positive when the amount of interest-earning assets maturing or repricing exceeds the amount of interest-bearing liabilities maturing or repricing within the same period. A gap is considered negative when the amount of interest-bearing liabilities maturing or repricing exceeds the amount of interest-earning assets maturing or repricing within the same period. Accordingly, a positive gap may enhance net interest income in a rising rate environment and reduce net interest income in a falling rate environment. Conversely, a negative gap may enhance net interest income in a falling rate environment and reduce net interest income in a rising rate environment.

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The table below sets forth the amounts of interest-earning assets and interest-bearing liabilities outstanding at December 31, 2014 which are anticipated by the Company, based upon certain assumptions, to reprice or mature in each of the future time periods shown. Except as stated below, the amount of assets and liabilities shown that reprice or mature during a particular period was determined in accordance with the earlier of the term to repricing or the contractual terms of the asset or liability. Prepayment assumptions for mortgage loans and mortgage-backed securities are based on our experience and industry averages, which generally range from 6% to 42%, depending on the contractual rate of interest and the underlying collateral. Money market accounts and savings accounts were assumed to have a withdrawal or “run-off” rate of 8% and 13%, respectively, based on our experience. While management bases these assumptions on actual prepayments and withdrawals experienced by us, there is no guarantee that these trends will continue in the future.

	Interest Rate Sensitivity Gap Analysis at December 31, 2014
	Three Months And Less			More Than Three Months To One Year			More Than One Year To Three Years			More Than Three Years To Five Years			More Than Five Years To Ten Years			More Than Ten Years			Total
	(Dollars in thousands)
Interest-Earning Assets
Mortgage loans	$	300,805		$	588,023		$	1,214,707		$	858,326		$	343,199		$	16,441		$	3,321,501
Other loans		119,073			114,782			118,519			63,342			49,141			12,296			477,153
Short-term securities (1)		22,977			-			-			-			-			-			22,977
Securities available for sale:																				-
Mortgage-backed securities		30,036			69,945			193,727			138,394			189,696			83,135			704,933
Other		86,298			15,251			-			5,365			18,794			142,669			268,377
Total interest-earning assets		559,189			788,001			1,526,953			1,065,427			600,830			254,541			4,794,941
Interest-Bearing Liabilities
Savings accounts		8,513			25,539			68,104			68,104			91,682			-			261,942
NOW accounts		-			-			-			-			-			1,248,057			1,248,057
Money market accounts		5,805			17,415			46,440			46,440			116,100			58,063			290,263
Certificate of deposit accounts		154,076			301,220			499,770			325,306			25,451			-			1,305,823
Mortgagors' escrow deposits		-			-			-			-			-			35,679			35,679
Borrowings		88,771			125,551			697,372			104,798			40,000			-			1,056,492
Total interest-bearing liabilities (2)	$	257,165		$	469,725		$	1,311,686		$	544,648		$	273,233		$	1,341,799		$	4,198,256
Interest rate sensitivity gap	$	302,024		$	318,276		$	215,267		$	520,779		$	327,597		$	(1,087,258	)	$	596,685
Cumulative interest-rate sensitivity gap	$	302,024		$	620,300		$	835,567		$	1,356,346		$	1,683,943		$	596,685
Cumulative interest-rate sensitivity gap as a percentage of total assets		5.95	%		12.22	%		16.46	%		26.72	%		33.17	%		11.75	%
Cumulative net interest-earning assets as a percentage of interest-bearing liabilities		217.44	%		185.34	%		140.99	%		152.51	%		158.95	%		114.21	%

(1) Consists of interest-earning deposits.

(2) Does not include non-interest bearing demand accounts totaling $255.8 million at December 31, 2014.

Certain shortcomings are inherent in the method of analysis presented in the foregoing table. For example, although certain assets and liabilities may have similar estimated maturities or periods to repricing, they may react in differing degrees to changes in market interest rates and may bear rates that differ in varying degrees from the rates that would apply upon maturity and reinvestment or upon repricing. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as ARM loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset. Further, in the event of a significant change in the level of interest rates, prepayments on loans and mortgage-backed securities, and deposit withdrawal or “run-off” levels, would likely deviate materially from those assumed in calculating the above table. In the event of an interest rate increase, some borrowers may be unable to meet the increased payments on their adjustable-rate debt. The interest rate sensitivity analysis assumes that the nature of the Company’s assets and liabilities remains static. Interest rates may have an effect on customer preferences for deposits and loan products. Finally, the maturity and repricing characteristics of many assets and liabilities as set forth in the above table are not governed by contract but rather by management’s best judgment based on current market conditions and anticipated business strategies.

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Interest Rate Risk

Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which requires the measurement of financial position and operating results in terms of historical dollars without considering the changes in fair value of certain investments due to changes in interest rates. Generally, the fair value of financial investments such as loans and securities fluctuates inversely with changes in interest rates. As a result, increases in interest rates could result in decreases in the fair value of our interest-earning assets which could adversely affect our results of operations if such assets were sold, or, in the case of securities classified as available for sale, decreases in our stockholders’ equity if such securities were retained.

We manage the mix of interest-earning assets and interest-bearing liabilities on a continuous basis to maximize return and adjust our exposure to interest rate risk. On a quarterly basis, management prepares the “Earnings and Economic Exposure to Changes in Interest Rate” report for review by the Board of Directors, as summarized below. This report quantifies the potential changes in net interest income and net portfolio value should interest rates go up or down (shocked) 200 basis points, assuming the yield curves of the rate shocks will be parallel to each other. Net portfolio value is defined as the market value of assets net of the market value of liabilities. The market value of assets and liabilities is determined using a discounted cash flow calculation. The net portfolio value ratio is the ratio of the net portfolio value to the market value of assets. All changes in income and value are measured as percentage changes from the projected net interest income and net portfolio value at the base interest rate scenario. The base interest rate scenario assumes interest rates at December 31, 2014. Various estimates regarding prepayment assumptions are made at each level of rate shock. Actual results could differ significantly from these estimates. At December 31, 2014, we were within the guidelines established by the Board of Directors for each interest rate level.

	Projected Percentage Change In												Net Portfolio
Change in Interest Rate	Net Interest Income						Net Portfolio Value						Value Ratio
	2014			2013			2014			2013			2014			2013
-200 basis points		-3.80	%		-3.29	%		7.51	%		5.82	%		13.01	%		13.56	%
-100 basis points		-0.05			0.28			5.87			6.23			13.02			13.77
Base interest rate		―			―			―			―			12.61			13.29
+100 basis points		-5.20			-4.84			-11.98			-12.28			11.45			12.05
+200 basis points		-10.93			-9.70			-26.54			-24.35			9.90			10.75

Analysis of Net Interest Income

Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends upon the relative amount of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them.

The following table sets forth certain information relating to our Consolidated Statements of Financial Condition and Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012, and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods shown. Average balances are derived from average daily balances. The yields include amortization of fees that are considered adjustments to yields.

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	For the year ended December 31,
	2014							2013							2012
	Average Balance		Interest		Yield/ Cost			Average Balance		Interest		Yield/ Cost			Average Balance		Interest		Yield/ Cost
	(Dollars in thousands)
Interest-earning assets:
Mortgage loans, net (1)(2)	$	3,075,055	$	154,316		5.02	%	$	2,928,694	$	158,420		5.41	%	$	2,893,271	$	167,920		5.80	%
Other loans, net (1)(2)		446,852		16,011		3.58			329,968		12,889		3.91			293,733		13,566		4.62
Total loans, net		3,521,907		170,327		4.84			3,258,662		171,309		5.26			3,187,004		181,486		5.69
Mortgage-backed securities		740,190		19,872		2.68			764,290		22,844		2.99			700,945		26,766		3.82
Other securities		279,804		6,850		2.45			251,380		6,294		2.50			197,775		5,395		2.73
Total securities		1,019,994		26,722		2.62			1,015,670		29,138		2.87			898,720		32,161		3.58
Interest-earning deposits and federal funds sold		41,770		79		0.19			42,454		79		0.19			41,322		67		0.16
Total interest-earning assets		4,583,671		197,128		4.30			4,316,786		200,526		4.65			4,127,046		213,714		5.18
Other assets		254,741							259,338							243,735
Total assets	$	4,838,412						$	4,576,124						$	4,370,781
Interest-bearing liabilities:
Deposits:
Savings accounts	$	258,243		597		0.23		$	274,791		515		0.19		$	317,095		689		0.22
NOW accounts		1,390,899		6,227		0.45			1,291,861		6,777		0.52			1,025,116		6,275		0.61
Money market accounts		245,752		667		0.27			180,211		294		0.16			175,817		399		0.23
Certificate of deposit accounts		1,199,849		22,420		1.87			1,185,696		24,414		2.06			1,443,195		32,983		2.29
Total due to depositors		3,094,743		29,911		0.97			2,932,559		32,000		1.09			2,961,223		40,346		1.36
Mortgagors' escrow accounts		47,876		133		0.28			46,217		37		0.08			41,973		36		0.09
Total interest-bearing deposits		3,142,619		30,044		0.96			2,978,776		32,037		1.08			3,003,196		40,382		1.34
Borrowings		993,790		24,697		2.49			953,188		22,826		2.39			767,638		22,893		2.98
Total interest-bearing liabilities		4,136,409		54,741		1.32			3,931,964		54,863		1.40			3,770,834		63,275		1.68
Non interest-bearing demand deposits		211,389							169,190							134,166
Other liabilities		40,217							42,560							36,309
Total liabilities		4,388,015							4,143,714							3,941,309
Equity		450,397							432,410							429,472
Total liabilities and equity	$	4,838,412						$	4,576,124						$	4,370,781
Net interest income / net interest rate spread (3)			$	142,387		2.98	%			$	145,663		3.25	%			$	150,439		3.50	%
Net interest-earning assets / net interest margin (4)	$	447,262				3.11	%	$	384,822				3.37	%	$	356,212				3.65	%
Ratio of interest-earning assets to interest-bearing liabilities						1.11	X						1.10	X						1.09	X

(1) Average balances include non-accrual loans.

(2) Loan interest income includes loan fee income (which includes net amortization of deferred fees and costs, late charges, and prepayment penalties) of approximately $5.0 million, $3.6 million and $3.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.

(3) Interest rate spread represents the difference between the average rate on interest-earning assets and the average cost of interest-bearing liabilities.

(4) Net interest margin represents net interest income before the provision for loan losses divided by average interest-earning assets.

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Rate/Volume Analysis

The following table presents the impact of changes in interest rates and in the volume of interest-earning assets and interest-bearing liabilities on the Company’s interest income and interest expense during the periods indicated. Information is provided in each category with respect to (1) changes attributable to changes in volume (changes in volume multiplied by the prior rate), (2) changes attributable to changes in rate (changes in rate multiplied by the prior volume) and (3) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.

	Increase (Decrease) in Net Interest Income
	Year Ended December 31, 2014 Compared to Year Ended December 31, 2013									Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
	Due to									Due to
	Volume			Rate			Net			Volume			Rate			Net
	(Dollars in thousands)
Interest-Earning Assets:
Mortgage loans, net	$	7,672		$	(11,776	)	$	(4,104	)	$	2,013		$	(11,513	)	$	(9,500	)
Other loans, net		4,280			(1,158	)		3,122			1,556			(2,233	)		(677	)
Mortgage-backed securities		(693	)		(2,279	)		(2,972	)		2,266			(6,188	)		(3,922	)
Other securities		686			(130	)		556			1,380			(481	)		899
Interest-earning deposits and federal funds sold		-			-			-			2			10			12
Total interest-earning assets		11,945			(15,343	)		(3,398	)		7,217			(20,405	)		(13,188	)
Interest-Bearing Liabilities:
Deposits:
Savings accounts		(30	)		112			82			(86	)		(88	)		(174	)
NOW accounts		457			(1,007	)		(550	)		1,498			(996	)		502
Money market accounts		129			244			373			11			(116	)		(105	)
Certificate of deposit accounts		288			(2,282	)		(1,994	)		(5,483	)		(3,086	)		(8,569	)
Mortgagors' escrow accounts		1			95			96			5			(4	)		1
Borrowings		944			927			1,871			4,942			(5,009	)		(67	)
Total interest-bearing liabilities		1,789			(1,911	)		(122	)		887			(9,299	)		(8,412	)
Net change in net interest income	$	10,156		$	(13,432	)	$	(3,276	)	$	6,330		$	(11,106	)	$	(4,776	)

Comparison of Operating Results for the Years Ended December 31, 2014 and 2013

General.  Net income for the twelve months ended December 31, 2014 was $44.2 million, an increase of $6.5 million, or 17.2%, compared to $37.8 million for the twelve months ended December 31, 2013. Diluted earnings per common share were $1.48 for the twelve months ended December 31, 2014, an increase of $0.22, or 17.5%, from $1.26 for the twelve months ended December 31, 2013.

Return on average equity increased to 9.82% for the twelve months ended December 31, 2014, from 8.73% for the prior year. Return on average assets increased to 0.91% for the twelve months ended December 31, 2014, from 0.79% for the prior year.

Interest Income.  Interest income decreased $3.4 million, or 1.69%, to $197.1 million for the year ended December 31, 2014 from $200.5 million for the year ended December 31, 2013. The decrease in interest income was primarily due to a 35 basis point reduction in the yield of interest-earning assets to 4.30% for the year ended December 31, 2014 from 4.65% for the year ended December 31, 2013, partially offset by a $266.9 million increase in the average balance of interest-earning assets to $4,583.7 million for the year ended December 31, 2014 from $4,316.8 million for the year ended December 31, 2013. The 35 basis point decline in the yield of interest-earning assets was primarily due to a 42 basis point reduction in the yield on the loan portfolio to 4.84% for the twelve months ended December 31, 2014 from 5.26% for the twelve months ended December 31, 2013, combined with a 25 basis point decline in the yield on total securities to 2.62% for the twelve months ended December 31, 2014 from 2.87% for the prior year. The 42 basis point decrease in the yield on the loan portfolio was primarily due to a decline in the rates earned on new loan originations and existing loans modified to lower rates. The 25 basis point decrease in the yield on the securities portfolio was primarily due to the purchase of new securities at lower yields than the existing portfolio. The yield on the mortgage loan portfolio decreased 39 basis points to 5.02% for the twelve months ended December 31, 2014 from 5.41% for the twelve months ended December 31, 2013.  The yield on the mortgage loan portfolio, excluding prepayment penalty income on loans, decreased 40 basis points to 4.84% for the twelve months ended December 31, 2014 from 5.24% for the twelve months ended December 31, 2013.

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Interest Expense.Interest expense decreased $0.1 million, or 0.22%, to $54.7 million for the year ended December 31, 2014 from $54.9 million for the year ended December 31, 2013. The decrease in the cost of interest-bearing liabilities is primarily attributable to an eight basis point reduction in the cost of interest-bearing liabilities to 1.32% for the year ended December 31, 2014 from 1.40% for the year ended December 31, 2013, partially offset by a $204.4 million increase in the average balance of interest-bearing liabilities to $4,136.4 million for the year ended December 31, 2014 from $3,932.0 million for the year ended December 31, 2013. The eight basis point decrease in the cost of interest-bearing liabilities was primarily attributable to the Bank reducing the rates it pays on its deposit products. The cost of certificates of deposit and NOW accounts decreased 19  and seven basis points, respectively, partially offset by increases in the cost of money market accounts and savings accounts of 11 and four basis points, respectively, for the twelve months ended December 31, 2014 from the prior year. The cost of due to depositors decreased 12 basis points to 0.97% for the twelve months ended December 31, 2014 from 1.09% for the twelve months ended December 31, 2013. The decrease in the cost of due to depositors was partially offset by a $5.2 million prepayment penalty recorded on borrowings as a result of the Bank prepaying $66.9 million in long-term FHLB-NY advances and $30.0 million in repurchase agreements during the year ended December 31, 2014. The prior year includes a $2.6 million prepayment penalty recorded on borrowings as a result of the Bank prepaying $69.9 million of FHLB-NY advances. Including these prepayment penalties, the cost of borrowed funds increased 10 basis points to 2.49% for the year ended December 31, 2014 from 2.39% in the prior year. Excluding these prepayment penalties, the cost of borrowed funds decreased 16 basis points to 1.96% for the year ended December 31, 2014 from 2.12% in the prior year. The 16 basis point decrease in the cost of borrowed funds was primarily due to maturing and new borrowings being replaced and obtained at lower rates.

Net Interest Income.Net interest income for the year ended December 31, 2014 totaled $142.4 million, a decrease of $3.3 million, or 2.25%, from $145.7 million for 2013.  The decrease in net interest income is attributed to a decrease in the net interest spread of 27 basis points to 2.98% for the twelve months ended December 31, 2014 from 3.25% for the prior year, partially offset by an increase in the average balance of interest-earning assets of $266.9 million, to $4,583.7 million for the year ended December 31, 2014. The yield on interest-earning assets decreased 35 basis points to 4.30% for the year ended December 31, 2014 from 4.65% for the year ended December 31, 2013, while the cost of interest-bearing liabilities decreased eight basis points to 1.32% for the year ended December 31, 2014 from 1.40% for the prior year period. The net interest margin decreased 26 basis points to 3.11% for the year ended December 31, 2014 from 3.37% for the year ended December 31, 2013. Excluding prepayment penalty income, the net interest margin would have been 2.98% and 3.26% for the years ended December 31, 2014 and 2013, respectively.

Provision for Loan Losses.  The provision for loan losses decreased $20.0 million during the twelve months ended December 31, 2014 to a benefit of $6.0 million from a provision of $13.9 million during the prior year. During the twelve months ended December 31, 2014, non-performing loans decreased $14.8 million to $34.2 million from $49.0 million at December 31, 2013. Net charge-offs for the twelve months ended December 31, 2014 totaled $0.7 million, or two basis points of average loans. The current loan-to-value ratio for our non-performing loans collateralized by real estate was 47.0% at December 31, 2014. When we have obtained properties through foreclosure, we have been able to quickly sell the properties at amounts that approximate book value. We anticipate that we will continue to see low loss content in our loan portfolio. The Bank continues to maintain conservative underwriting standards. As a result of the analysis of the allowance for loans losses, a reduction in the allowance was warranted, and as such, the Company recorded a benefit of $6.0 million for the twelve months ended December 31, 2014.

Non-Interest Income.Non-interest income for the twelve months ended December 31, 2014 was $10.2 million, an increase of $0.7 million, or 7.2%, from $9.6 million for the twelve months ended December 31, 2013. The increase in non-interest income was primarily due to an improvement in Other-than-temporary impairment (“OTTI”) charges as there were no OTTI charges recorded during the twelve months ended December 31, 2014, but the prior year included an OTTI charge of $1.4 million on private issue CMOs. This improvement was partially offset by decreases of $0.3 million in each of other fee income and bank owned life insurance, respectively. Additionally, net gains on sale of securities decreased $0.1 million to $2.9 million for the twelve months ended December 31, 2014, from $3.0 million for the twelve months ended December 31, 2013.

Non-Interest Expense. Non-interest expense was $85.8 million for the twelve months ended December 31, 2014, an increase of $5.3 million, or 6.5%, from $80.6 million for the twelve months ended December 31, 2013. The increase was primarily due to increases of $4.6 million in salaries and benefits expense primarily due to an increase of $0.4 million in split dollar BOLI expense due to a decrease in the discount rate used to calculate the liability, increased salaries expense of $3.1 million due to annual increases and increased staffing to support the growth of the Bank and an increase of $0.9 million in the cost of grants of annual restricted stock unit awards. Additionally, the increase in non-interest expense was from increases of $0.8 million in professional services from increased legal fees as the prior year period included a decrease in legal fees and $1.1 million in other operating expense. These increases were partially offset by decreases of $1.0 million in other real estate owned/foreclosure expense from a reduction in non-accrual loans and $0.5 million in FDIC insurance expense primarily due to a reduction in the assessment rate. The efficiency ratio was 54.4% for the twelve months ended December 31, 2014 compared to 50.6% for the twelve months ended December 31, 2013.

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Income Tax Provisions.  Income tax expense for the year ended December 31, 2014 increased $5.6 million to $28.6 million, compared to $23.0 million for the year ended December 31, 2013. The increase was primarily attributed to an increase of $12.1 million in income before income taxes, combined with an increase in the effective tax rate. The effective tax rate was 39.2% and 37.8% for the years ended December 31, 2014 and 2013, respectively.

Comparison of Operating Results for the Years Ended December 31, 2013 and 2012

General.  Net income for the twelve months ended December 31, 2013 was $37.8 million, an increase of $3.4 million, or 10.0%, compared to $34.3 million for the twelve months ended December 31, 2012. Diluted earnings per common share were $1.26 for the twelve months ended December 31, 2013, an increase of $0.13, or 11.5%, from $1.13 for the twelve months ended December 31, 2012.

Return on average equity was 8.73% for the twelve months ended December 31, 2013 compared to 7.99% for the twelve months ended December 31, 2012. Return on average assets was 0.79% for both of the twelve months ended December 31, 2013 and 2012.

Interest Income.  Interest income decreased $13.2 million, or 6.17%, to $200.5 million for the year ended December 31, 2013 from $213.7 million for the year ended December 31, 2012. The decrease in interest income was primarily due to a 53 basis point reduction in the yield of interest-earning assets to 4.65% for the year ended December 31, 2013 from 5.18% for the year ended December 31, 2012, partially offset by a $189.7 million increase in the average balance of interest-earning assets to $4,316.8 million for the year ended December 31, 2013 from $4,127.0 million for the year ended December 31, 2012. The 53 basis point decline in the yield of interest-earning assets was primarily due to a 43 basis point reduction in the yield on the loan portfolio to 5.26% for the twelve months ended December 31, 2013 from 5.69% for the twelve months ended December 31, 2012, combined with a 71 basis point decline in the yield on total securities to 2.87% for the twelve months ended December 31, 2013 from 3.58% for the prior year. In addition, the yield of interest-earning assets was negatively impacted by a $117.0 million increase in the average balance of the lower yielding securities portfolio for the twelve months ended December 31, 2013. The 43 basis point decrease in the yield on the loan portfolio was primarily due to a decline in the rates earned on new loan originations and existing loans modified to lower rates. The 71 basis point decrease in the yield on the securities portfolio was primarily due to the purchase of new securities at lower yields than the existing portfolio. The yield on the mortgage loan portfolio decreased 39 basis points to 5.41% for the twelve months ended December 31, 2013 from 5.80% for the twelve months ended December 31, 2012.  The yield on the mortgage loan portfolio, excluding prepayment penalty income on loans, decreased 42 basis points to 5.24% for the twelve months ended December 31, 2013 from 5.66% for the twelve months ended December 31, 2012.

Interest Expense.Interest expense decreased $8.4 million, or 13.29%, to $54.9 million for the year ended December 31, 2013 from $63.3 million for the year ended December 31, 2012. The decrease in the cost of interest-bearing liabilities is primarily attributable to a 28 basis point reduction in the cost of interest-bearing liabilities to 1.40% for the year ended December 31, 2013 from 1.68% for the year ended December 31, 2012, partially offset by a $161.1 million increase in the average balance of interest-bearing liabilities to $3,932.0 million for the year ended December 31, 2013 from $3,770.8 million for the year ended December 31, 2012. The 28 basis point decrease in the cost of interest-bearing liabilities was primarily attributable to the Bank reducing the rates it pays on its deposit products. The cost of certificates of deposit, money market accounts, savings accounts and NOW accounts decreased 23 basis points, seven basis points, three basis points and nine basis points, respectively, for the twelve months ended December 31, 2013 from the prior year.  This resulted in a decrease in the cost of due to depositors of 27 basis points to 1.09% for the twelve months ended December 31, 2013 from 1.36% for the twelve months ended December 31, 2012. The decrease in the cost of due to depositors was partially offset by a $2.6 million prepayment penalty recorded on borrowings as a result of the Bank prepaying in 2013 $69.9 million of FHLB-NY advances scheduled to mature in 2014.  Including the prepayment penalty, borrowed funds decreased 59 basis points to 2.39% for the year ended December 31, 2013 from 2.98% in the prior year.  The 59 basis point decrease in the cost of borrowed funds was primarily due to maturing and new borrowings being replaced and obtained at lower rates.

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Net Interest Income.Net interest income for the year ended December 31, 2013 totaled $145.7 million, a decrease of $4.8 million, or 3.17%, from $150.4 million for 2012.  The decrease in net interest income is attributed to a decrease in the net interest spread of 25 basis points to 3.25% for the twelve months ended December 31, 2013 from 3.50% for the prior year, partially offset by an increase in the average balance of interest-earning assets of $189.7 million, to $4,316.8 million for the year ended December 31, 2013.  The yield on interest-earning assets decreased 53 basis points to 4.65% for the year ended December 31, 2013 from 5.18% for the year ended December 31, 2012 while the cost of funds of decreased 28 basis points to 1.40% for the year ended December 31, 2013 from 1.68% for the prior year period. The net interest margin decreased 28 basis points to 3.37% for the year ended December 31, 2013 from 3.65% for the year ended December 31, 2012. Excluding prepayment penalty income, the net interest margin would have been 3.26% and 3.53% for the years ended December 31, 2013 and 2012, respectively.

Provision for Loan Losses.  A provision for loan losses of $13.9 million was recorded for the twelve months ended December 31, 2013, which was a decrease of $7.1 million from $21.0 million recorded in the twelve months ended December 31, 2012. During the twelve months ended December 31, 2013, non-performing loans decreased $40.9 million to $49.0 million from $89.8 million at December 31, 2012. Net charge-offs for the twelve months ended December 31, 2013 totaled $13.3 million, or 41 basis points of average loans. The current loan-to-value ratio for our non-performing loans collateralized by real estate was 46.2% at December 31, 2013. When we have obtained properties through foreclosure, we have been able to quickly sell the properties at amounts that approximate book value. We anticipate that we will continue to see low loss content in our loan portfolio. The Bank continues to maintain conservative underwriting standards. As a result of the analysis of the allowance for loans losses, management deemed it necessary to record a $13.9 million provision for loan losses for the twelve months ended December 31, 2013.

Non-Interest Income.Non-interest income for the twelve months ended December 31, 2013 was $9.6 million, an increase of $0.5 million, or 5.4%, from $9.1 million for the twelve months ended December 31, 2012.  The increase in non-interest income was primarily due to the $2.9 million gain from the sale of mortgage-backed securities during the twelve months ended December 31, 2013.  Non-interest income also improved due to a $0.6 million increase in BOLI income.  These increases were partially offset by a $2.6 million increase in net losses from fair value adjustments and a $0.6 million increase in OTTI charges recorded on four private issue CMOs during the twelve months ended December 31, 2013 compared to the twelve months ended December 31, 2012. Additionally, during the twelve months ended December 31, 2013, we sold five OTTI CMOs for total proceeds of $18.3 million realizing a loss on sale of $1.7 million.  In conjunction with this sale, we also sold $22.8 million in corporate securities realizing a gain on sale of $1.4 million and sold a mortgage-backed security for $2.7 million realizing a gain on sale of $0.1 million.

Non-Interest Expense. Non-interest expense was $80.6 million for the twelve months ended December 31, 2013, a decrease of $1.8 million, or 2.1%, from $82.3 million for the twelve months ended December 31, 2012. The decrease was primarily due to decreases of $1.0 million in FDIC insurance expense primarily due to a reduction in the assessment rate and base as a result of the Merger, $0.7 million in OREO/foreclosure expense primarily due to a reduction in non-performing assets, $0.8 million in net losses on sales of OREO and $0.9 million in professional services primarily due to decreased legal expense. These decreases were partially offset by a $1.9 million increase in salaries and benefits expense primarily due to annual salary increases and increased annual incentives for exceeding corporate performance goals, partially offset by decrease in BOLI life insurance liability primarily due to an increase in the discount rate used to calculate the liability. The efficiency ratio was 50.6% and 50.7% for the twelve months ended December 31, 2013 and 2012, respectively.

Income Tax Provisions.  Income tax expense for the year ended December 31, 2013 increased $1.1 million to $23.0 million, compared to $21.8 million for the year ended December 31, 2012. The increase was primarily attributed to the increase of $4.5 million in income before income taxes, partially offset by a decline in the effective tax rate.

The effective tax rate was 37.8% and 38.9% for the years ended December 31, 2013 and 2012, respectively.  The decline in the effective tax rate was primarily due to an increase in tax preference items in 2013 compared to 2012.

Liquidity, Regulatory Capital and Capital Resources

Our primary sources of funds are deposits, borrowings, principal and interest payments on loans, mortgage-backed and other securities, and proceeds from sales of securities and loans. Deposit flows and mortgage prepayments, however, are greatly influenced by general interest rates, economic conditions and competition. At December 31, 2014, the Bank had an approved overnight line of credit of $100.0 million with the FHLB-NY. In total, as of December 31, 2014, the Bank was able to borrow up to $2,201.4 million from the FHLB-NY in Federal Home Loan advances, letters of credit and overnight lines of credit. As of December 31, 2014, the Bank had $1,411.8 million outstanding in combined balances of FHLB-NY advances and letters of credit. In addition, Flushing Financial Corporation has junior subordinated debentures with a face amount of $61.9 million and a carrying amount of $28.8 million (which are included in Borrowed Funds) and the Bank had $116.0 million in repurchase agreements to fund lending and investment opportunities. (See Note 9 of Notes to the Consolidated Financial Statements in Item 8 of this Annual Report.) Management believes its available sources of funds are sufficient to fund current operations.

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Our most liquid assets are cash and cash equivalents, which include cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less. The level of these assets is dependent on our operating, financing, lending and investing activities during any given period. At December 31, 2014, cash and cash equivalents totaled $34.3 million, an increase of $0.8 million from December 31, 2013. We also held marketable securities available for sale with a market value of $973.3 million at December 31, 2014.

At December 31, 2014, we had commitments to extend credit (principally real estate mortgage loans) of $68.3 million and open lines of credit for borrowers (principally business lines of credit and home equity loan lines of credit) of $190.4 million. Since generally all of the loan commitments are expected to be drawn upon, the total loan commitments approximate future cash requirements, whereas the amounts of lines of credit may not be indicative of our future cash requirements. The loan commitments generally expire in 90 days, while construction loan lines of credit mature within 18 months and home equity loan lines of credit mature within 10 years. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments.

Our total interest expense and operating expense in 2014 were $54.7 million and $85.8 million, respectively.

We maintain three postretirement defined benefit plans for our employees: a noncontributory defined benefit pension plan which was frozen as of September 30, 2006, a contributory medical plan, and a noncontributory life insurance plan. The life insurance plan was amended to discontinue providing life insurance benefits to future retirees after January 1, 2010 and the medical plan was frozen as of January 1, 2011. We also maintain a noncontributory defined benefit plan for certain of our non-employee directors, which was frozen as of January 1, 2004. The employee pension plan is the only plan that we have funded. During 2014, we incurred cash expenditures of $0.1 million for the medical and life insurance plans and $0.1 million for the non-employee director plan; we did not make a contribution to the employee pension plan in 2014. We expect to pay similar amounts for these plans in 2015. (See Note 12 of Notes to Consolidated Financial Statements in Item 8 of this Annual Report.)

The amounts reported in our financial statements are obtained from reports prepared by independent actuaries, and are based on significant assumptions. The most significant assumption is the discount rate used to determine the accumulated postretirement benefit obligation (“APBO”) for these plans. The APBO is the present value of projected benefits that employees and retirees have earned to date. The discount rate is a single rate at which the liabilities of the plans are discounted into today’s dollars and could be effectively settled or eliminated. The discount rate used is based on the Citigroup Pension Liability Index, and reflects a rate that could be earned on bonds over a similar period that we anticipate the plans’ liabilities will be paid. An increase in the discount rate would reduce the APBO, while a reduction in the discount rate would increase the APBO. During the past several years, when interest rates have been at historically low levels, the discount rate used for our plans has declined from 7.25% for 2001 to 3.76% for 2014. This decline in the discount rate has resulted in an increase in our APBO.

The Company’s actuaries use several other assumptions that could have a significant impact on our APBO and periodic expense for these plans. These assumptions include, but are not limited to, expected rate of return on plan assets, future increases in medical and life insurance premiums, turnover rates of employees, and life expectancy. The accounting standards for postretirement plans involve mechanisms that serve to limit the volatility of earnings by allowing changes in the value of plan assets and benefit obligations to be amortized over time when actual results differ from the assumptions used, there are changes in the assumptions used, or there are plan amendments. At December 31, 2014, our employee pension plan and medical and life insurance plan have unrecognized losses of $9.9 million and $2.1 million, respectively.  The non-employee director plan has a $0.5 million unrecognized gain, due to experience different from what had been estimated and changes in actuarial assumptions. The employee pension plan’s unrecognized loss is primarily attributed to the reduction in the discount rate and change in the Plan’s mortality table. The medical and life insurance plans’ unrecognized loss is attributed to the reduction in the discount rate over the past several years.   In addition, the non-employee director pension plan has an unrecognized past service liability of $0.1 million due to plan amendments in prior years and the medical and life insurance plan have a $0.6 million past service credit due to plan amendments. The net after tax effect of the unrecognized gains and losses associated with these plans has been recorded in accumulated other comprehensive income in stockholders’ equity, resulting in a reduction of stockholders’ equity of $6.3 million as of December 31, 2014.

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The change in the discount rate, the Pension Plan’s mortality table and the reduction in medical premiums are the only significant changes made to the assumptions used for these plans for each of three years ended December 31, 2014. During the year ended December 31, 2012 the actual return on the employee pension plan assets approximated the assumed return used to determine the periodic pension expense for that year. During the year ended December 31, 2013, the actual return on the employee pension plan assets was approximately 2.5 times the assumed return used to determine the periodic pension expense for that year. During the year ended December 31, 2014, the actual return on the employee pension plan assets was approximately 75% of the assumed return used to determine the periodic pension expense for that year.

The market value of the assets of our employee pension plan is $20.5 million at December 31, 2014, which is $3.6 million less than the projected benefit obligation. We do not anticipate a change in the market value of these assets which would have a significant effect on liquidity, capital resources, or results of operations.

During 2014, funds provided by the Company's operating activities amounted to $57.4 million. These funds combined with $283.0 million provided from financing activities were utilized to fund net investing activities of $339.6 million. The Company's primary business objective is the origination and purchase of multi-family residential loans, commercial business loans and commercial real estate mortgage loans and to a lesser extent one-to-four family (including mixed-use properties) and SBA loans. During the year ended December 31, 2014, the net total of loan originations and purchases less loan repayments and sales was $402.1 million. During the year ended December 31, 2014, the Company also funded $162.8 million in purchases of securities available for sale and repaid $167.1 million in long-term borrowed funds.  During the year ended December 31, 2014, funds were provided by net increases of $274.9 million in total deposits and $30.5 million in short-term borrowed funds. Additionally, funds were provided by $227.4 million in proceeds from maturities, sales, calls and prepayments of securities available for sale and the addition of $180.0 million in long-term borrowed funds. The Company also used funds of $17.9 million and $18.9 million for dividend payments and purchases of treasury stock, respectively, during the year ended December 31, 2014.

At the time of the Savings Bank’s conversion from a federally chartered mutual savings bank to a federally chartered stock savings bank, the Savings Bank was required by its primary regulator to establish a liquidation account which is reduced as and to the extent that eligible account holders reduce their qualifying deposits. Upon completion of the Merger, the liquidation account was assumed by the Bank. The balance of the liquidation account at December 31, 2014 was $1.0 million. In the unlikely event of a complete liquidation of the Bank, each eligible account holder will be entitled to receive a distribution from the liquidation account. The Bank is not permitted to declare or pay a dividend or to repurchase any of its capital stock if the effect would be to cause the Bank’s regulatory capital to be reduced below the amount required for the liquidation account but approval of the NYDFS Superintendent is required if the total of all dividends declared by the Bank in a calendar year would exceed the total of its net profits for that year combined with its retained net profits for the preceding two years less prior dividends paid.  On July 21, 2011, as a result of the Dodd-Frank Act, the Bank’s primary regulator became the OCC and Flushing Financial Corporation’s primary regulator became the Federal Reserve Board of Governors (“Federal Reserve”). Prior to July 21, 2011, unlike the Savings Bank, Flushing Financial Corporation was not subject to regulatory restrictions on the declaration or payment of dividends to its stockholders, although the source of such dividends could depend upon dividend payments from the Savings Bank. However, Flushing Financial Corporation was subject, to the requirements of Delaware law, which generally limit dividends to an amount equal to the excess of its net assets (the amount by which total assets exceed total liabilities) over its stated capital or, if there is no such excess, to its net profits for the current and/or immediately preceding fiscal year. With the Federal Reserve becoming Flushing Financial Corporation’s primary regulator, Flushing Financial Corporation became subject to the same regulatory restrictions on the declaration of dividends as the Savings Bank.

Regulatory Capital Position.  Under applicable regulatory capital regulations, the Bank and the Company are required to comply with each of three separate capital adequacy standards: leverage capital, Tier I risk-based capital and total risk-based capital. Such classifications are used by the FDIC and other bank regulatory agencies to determine matters ranging from each institution’s quarterly FDIC deposit insurance premium assessments, to approvals of applications authorizing institutions to grow their asset size or otherwise expand business activities. At December 31, 2014 and 2013, the Bank and the Company each exceeded their three regulatory capital requirements. (See Note 14 of Notes to Consolidated Financial Statements included in Item 8 of this Annual Report.)

Critical Accounting Policies

The Company’s accounting policies are integral to understanding the results of operations and statement of financial condition. These policies are described in the Notes to Consolidated Financial Statements. Several of these policies require management’s judgment to determine the value of the Company’s assets and liabilities. The Company has established detailed written policies and control procedures to ensure consistent application of these policies. The Company has identified four accounting policies that require significant management valuation judgment: the allowance for loan losses, fair value of financial instruments, goodwill impairment and income taxes.

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Allowance for Loan Losses. An allowance for loan losses is provided to absorb probable estimated losses inherent in the loan portfolio. Management reviews the adequacy of the allowance for loan losses by reviewing all impaired loans on an individual basis. The remaining portfolio is evaluated based on the Company's historical loss experience, recent trends in losses, collection policies and collection experience, trends in the volume of non-performing loans, changes in the composition and volume of the gross loan portfolio, and local and national economic conditions.  Judgment is required to determine how many years of historical loss experience are to be included when reviewing historical loss experience. A full credit cycle must be used, or loss estimates may be inaccurate. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

Notwithstanding the judgment required in assessing the components of the allowance for loan losses, the Company believes that the allowance for loan losses is adequate to cover losses inherent in the loan portfolio. The policy has been applied on a consistent basis for all periods presented in the Consolidated Financial Statements.

Fair Value of Financial Instruments. The Company carries certain financial assets and financial liabilities at fair value in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 825 “Financial Instruments” and values those financial assets and financial liabilities in accordance with ASC Topic 820 “Fair Value Measurements and Disclosures.”  ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  ASC Topic 825 permits entities to choose to measure many financial instruments and certain other items at fair value. Management selected the fair value option for certain investment securities, primarily mortgage-backed securities, and certain borrowings. Changes in the fair value of financial instruments for which the fair value election is made are recorded in the Consolidated Statements of Income. At December 31, 2014, financial assets and financial liabilities with fair values of $32.6 million and $28.8 million, respectively, are carried at fair value under the fair value option.

The securities portfolio also consists of mortgage-backed and other securities for which the fair value election was not selected. These securities are classified as available for sale and are carried at fair value in the Consolidated Statements of Financial Condition, with changes in fair value recorded in Accumulated Other Comprehensive Income. If any decline in fair value for these securities is deemed other-than-temporary, the security is written down to a new cost basis with the resulting loss recorded in the Consolidated Statements of Income. During 2014, no other-than-temporary impairment charges were recorded. During 2013, we recorded an other-than-temporary impairment charge of $1.4 million for certain private issue collateralized mortgage obligations.

Financial assets and financial liabilities reported at fair value are required to be measured based on the following alternatives: (1) quoted prices in active markets for identical financial instruments (Level 1), (2) significant other observable inputs (Level 2), or (3) significant unobservable inputs (Level 3). Judgment is required in selecting the appropriate level to be used to determine fair value. The majority of financial assets and financial liabilities for which the fair value election was made, and the majority of investments classified as Available for Sale, were measured using Level 2 inputs, which require judgment to determine the fair value. The trust preferred securities held in the investment portfolio, and the Company’s junior subordinated debentures, were measured using Level 3 inputs due to the inactive market for these securities. The private label collateralized mortgage obligations for which other-than-temporary impairment charges were recorded in 2013 were valued using a Level 3 input.

Goodwill Impairment. Goodwill is presumed to have an indefinite life and is tested for impairment, rather than amortized, on at least an annual basis. For the purpose of goodwill impairment testing, management has concluded that the Company has one reporting unit. If the estimated fair value of the reporting unit exceeds its carrying amount, there is no impairment of goodwill. However, if the fair value of the reporting unit is less than its carrying amount, further evaluation is required to determine if a write down of goodwill is required.

Quoted market prices in active markets are the best evidence of fair value and are to be used as the basis for measurement, when available. Other acceptable valuation methods include an asset approach, which determines a fair value based upon the value of assets net of liabilities, an income approach, which determines fair value using one or more methods that convert anticipated economic benefits into a present single amount, and a market approach, which determines a fair value based on the similar businesses that have been sold.

76

The Company conducts its annual impairment testing of goodwill as of December 31. The impairment testing as of December 31, 2014 and 2013 did not show an impairment of goodwill based on the fair value of the Company.

Income Taxes. The Company estimates its income taxes payable based on the amounts it expects to owe to the various taxing authorizes (i.e. federal, state and local). In estimating income taxes, management assesses the relative merits and risks of the tax treatment of transactions, taking into account statutory, judicial and regulatory guidance in the context of the Company’s tax position. Management also relies on tax opinions, recent audits, and historical experience.

The Company also recognizes deferred tax assets and liabilities for the future tax consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is required for deferred tax assets that the Company estimates are more likely than not to be unrealizable, based on evidence available at the time the estimate is made. These estimates can be affected by changes to tax laws, statutory tax rates, and future income levels.

Contractual Obligations

	Payments Due By Period
	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		More Than 5 Years
	(In thousands)
Borrowings	$	1,056,492	$	341,551	$	581,372	$	104,798	$	28,771
Deposits		3,508,598		2,658,070		499,771		325,300		25,457
Loan commitments		258,685		258,685		-		-		-
Operating lease obligations		53,803		4,440		8,896		9,780		30,687
Purchase obligations		10,077		4,918		4,641		518		-
Pension and other postretirement benefits		14,824		519		1,016		1,086		12,203
Deferred compensation plans		11,420		575		1,150		1,150		8,545
Total	$	4,913,899	$	3,268,758	$	1,096,846	$	442,632	$	105,663

We have significant obligations that arise in the normal course of business. We finance our assets with deposits and borrowings. We also use borrowings to manage our interest-rate risk. Borrowings with call provisions are included in the period of the next call date. We have the means to refinance these borrowings as they mature or are called through financing arrangements with the FHLB-NY and our ability to arrange repurchase agreements with broker-dealers and the FHLB-NY. (See Notes 8 and 9 of Notes to Consolidated Financial Statements in Item 8 of this Annual Report.)

We focus our balance sheet growth on the origination of mortgage loans. At December 31, 2014, we had commitments to extend credit and lines of credit of $258.7 million for mortgage and other loans. These loans will be funded through principal and interest payments received on existing mortgage loans and mortgage-backed securities, growth in customer deposits, and, when necessary, additional borrowings. (See Note 15 of Notes to Consolidated Financial Statements in Item 8 of this Annual Report.)

At December 31, 2014, the Bank had seventeen branches, twelve of which are leased. The Bank leases its branch locations primarily when it is not the sole tenant. Whether the Bank will purchase its future branch locations will depend in part on the availability of suitable locations and the availability of properties. In addition, we lease our executive offices. We currently outsource our data processing, loan servicing and check processing functions. We believe that this is the most cost effective method for obtaining these services. These arrangements are usually volume dependent and have varying terms. The contracts for these services usually include annual increases based on the increase in the consumer price index. The amounts shown above for purchase obligations represent the current term and volume of activity of these contracts. We expect to renew these contracts as they expire.

The amounts shown for pension and other postretirement benefits reflect our directors’ pension plan and the supplemental retirement benefits of our president, and amounts due under our plan for medical and life insurance benefits for retired employees. The amount shown in the “Less Than 1 Year” column represents our current estimate for these benefits, some of which are based on information supplied by actuaries. The amounts shown in columns reflecting periods over one year represent our current estimate based on the past year’s actual disbursements and information supplied by actuaries. The amounts do not include an increase for possible future retirees or increases in health plan costs. The amount shown in the “More Than 5 Years” column represents the amount required to increase the total amount to the projected benefit obligation of the directors’ plan and the medical and life insurance benefit plans, since these are unfunded plans and the underfunded portion of the employee pension plan.(See Note 12 of Notes to Consolidated Financial Statements in Item 8 of this Annual Report.)

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We currently provide a non-qualified deferred compensation plan for officers who have achieved the level of at least senior vice president (certain officers who had achieved the level of at least vice president are included in this plan under previously existing guidelines). In addition to the amounts deferred by the officers, we match 50% of their contributions, generally up to a maximum of 5% of the officer’s salary. These plans generally require the deferred balance to be credited with earnings at a rate earned by certain mutual funds. Through December 31, 2011, employees could not receive a distribution from these plans until their employment is terminated. The amounts shown in the columns for less than five years represent the estimate of the amounts we will contribute to a rabbi trust with respect to matching contributions under these plans, and the amounts to be paid from the rabbi trust to two executives who have retired. The amount shown in the “More Than 5 Years” column represents the current accrued liability for these plans, adjusted for the activity in the columns for less than five years. This expense is provided in the Consolidated Statements of Income, and the liability has been provided in the Consolidated Statements of Financial Condition.

New Authoritative Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-04 to clarify that when an in substance repossession or  foreclosure occurs,  a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction.  ASU 2014- 04 is effective for annual reporting periods beginning after December 15, 2014.  Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.

In May 2014, the FASB issued ASU 2014-09 which provides new guidance that supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this new guidance on our consolidated results of operations and financial condition.

In June 2014, the FASB issued ASU 2014-11 which amends the authoritative accounting guidance under ASC Topic 860 “Transfers and Servicing.” The amendments require two accounting changes. First, the amendments change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement.  The amendments also require additional disclosures regarding repurchase agreements.  The amendments are effective for the first interim or annual period beginning after December 15, 2014. Entities are required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early adoption is prohibited. The amendments regarding disclosures for certain transactions accounted for as a sale are required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings are required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. We are currently evaluating the impact of adopting these amendments on our consolidated results of operations and financial condition.

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In August 2014, the FASB issued ASU 2014-14 which amends the authoritative accounting guidance under ASC Topic 310 “Receivables.” The amendments require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the follow conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make claim on the guarantee, and the creditor has the ability to recover under that claim and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Entities should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.

Item 7A.     Quantitative and Qualitative Disclosures About Market Risk.

This information is contained in the section captioned “Interest Rate Risk” on page 66 and in Notes 15 and 16 of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report.

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Item 8.     Financial Statements and Supplementary Data.

FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

	December 31, 2014			December 31, 2013
	(Dollars in thousands, except per share data)
Assets
Cash and due from banks	$	34,265		$	33,485
Securities available for sale, at fair value:
Mortgage-backed securities (including assets pledged of $464,626 and $556,520 at December 31, 2014 and 2013, respectively; $4,678 and $7,119 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		704,933			756,156
Other securities (including assets pledged of $57,562 at December 31, 2014; $27,915 and $30,163 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		268,377			261,634
Loans held for sale		-			425
Loans, net of fees and costs		3,810,373			3,434,178
Less: Allowance for loan losses		(25,096	)		(31,776	)
Net loans		3,785,277			3,402,402
Interest and dividends receivable		17,251			17,370
Bank premises and equipment, net		21,868			20,356
Federal Home Loan Bank of New York stock, at cost		46,924			46,025
Bank owned life insurance		112,656			109,606
Goodwill		16,127			16,127
Other assets		69,335			57,915
Total assets	$	5,077,013		$	4,721,501
Liabilities
Due to depositors:
Non-interest bearing	$	255,834		$	197,343
Interest-bearing		3,217,085			3,002,639
Mortgagors' escrow deposits		35,679			32,798
Borrowed funds ($28,771 and $29,570 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		940,492			856,822
Securities sold under agreements to repurchase		116,000			155,300
Other liabilities		55,676			44,067
Total liabilities		4,620,766			4,288,969
Commitments and contingencies (Note 14)
Stockholders' Equity
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)		-			-
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares issued at December 31, 2014 and 2013; 29,403,823 shares and 30,123,252 shares outstanding at December 31, 2014 and 2013, respectively)		315			315
Additional paid-in capital		206,437			201,902
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)		(37,221	)		(22,053	)
Retained earnings		289,623			263,743
Accumulated other comprehensive loss, net of taxes		(2,907	)		(11,375	)
Total stockholders' equity		456,247			432,532
Total liabilities and stockholders' equity	$	5,077,013		$	4,721,501

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

	For the years ended December 31,
	2014			2013			2012
	(In thousands, except per share data)
Interest and dividend income
Interest and fees on loans	$	170,327		$	171,309		$	181,486
Interest and dividends on securities:
Interest		25,969			28,310			31,306
Dividends		753			828			855
Other interest income		79			79			67
Total interest and dividend income		197,128			200,526			213,714
Interest expense
Deposits		30,044			32,037			40,382
Other interest expense		24,697			22,826			22,893
Total interest expense		54,741			54,863			63,275
Net interest income		142,387			145,663			150,439
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Net interest income after provision for loan losses		148,408			131,728			129,439
Non-interest income
Other-than-temporary impairment ("OTTI") charge		-			(1,419	)		(3,138	)
Less: Non-credit portion of OTTI charge recorded in Other Comprehensive Income, before taxes		-			-			2,362
Net OTTI charge recognized in earnings		-			(1,419	)		(776	)
Banking services fee income		3,394			3,687			4,007
Net (loss) gain on sale of loans held for sale		-			(108	)		(9	)
Net gain on sale of loans		67			284			31
Net gain on sale of securities		2,875			3,021			47
Net (loss) gain from fair value adjustments		(2,568	)		(2,521	)		55
Federal Home Loan Bank of New York stock dividends		1,898			1,663			1,507
Bank owned life insurance		3,050			3,363			2,790
Other income		1,527			1,586			1,413
Total non-interest income		10,243			9,556			9,065
Non-interest expense
Salaries and employee benefits		48,998			44,397			42,503
Occupancy and equipment		7,998			7,646			7,807
Professional services		5,982			5,210			6,108
FDIC deposit insurance		2,707			3,206			4,186
Data processing		4,194			4,238			4,101
Depreciation and amortization of premises and equipment		2,813			2,953			3,207
Other real estate owned / foreclosure expense		1,338			2,292			2,964
Other operating expenses		11,809			10,634			11,450
Total non-interest expense		85,839			80,576			82,326
Income before income taxes		72,812			60,708			56,178
Provision for income taxes
Federal		20,912			17,344			16,740
State and local		7,661			5,612			5,107
Total provision for income taxes		28,573			22,956			21,847
Net income	$	44,239		$	37,752		$	34,331
Basic earnings per common share	$	1.49		$	1.26		$	1.13
Diluted earnings per common share	$	1.48		$	1.26		$	1.13

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

	For the years ended December 31,
	2014			2013			2012
	(Dollars in thousands)
Comprehensive Income
Net income	$	44,239		$	37,752		$	34,331
Other comprehensive income, net of tax
Unrecognized actuarial (losses) gains		(3,790	)		3,261			(479	)
Amortization of actuarial losses		370			696			587
Amortization of prior service credit		(26	)		(26	)		(26	)
OTTI charges included in income		-			798			437
Reclassification adjustment for net gains included in income		(1,634	)		(1,700	)		(26	)
Unrealized gains (losses) on securities		13,548			(26,541	)		6,831
Comprehensive income	$	52,707		$	14,240		$	41,655

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

	For the years ended December 31,
	2014			2013			2012
	(Dollars in thousands, except per share data)
Common Stock
Balance, beginning of year	$	315		$	315		$	315
No activity		-			-			-
Balance, end of year		315			315			315
Additional Paid-In Capital
Balance, beginning of year		201,902			198,314			195,628
Award of common shares released from Employee Benefit Trust (136,559, 143,941 and 157,922 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		2,075			1,652			1,480
Shares issued upon vesting of restricted stock unit awards (7,300, 120,114 and 113,272 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		30			161			317
Options exercised (138,575, 463,245 and 125,405 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		455			1,451			164
Stock-based compensation activity, net		1,129			(119	)		1,028
Stock-based income tax (provision) benefit		846			443			(303	)
Balance, end of year		206,437			201,902			198,314
Treasury Stock
Balance, beginning of year		(22,053	)		(10,257	)		(7,355	)
Purchases of common shares outstanding (914,671, 836,092 and 352,000 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		(17,644	)		(13,152	)		(5,019	)
Issuance upon exercise of stock options (150,115, 463,245 and 150,225 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		2,461			6,763			1,818
Repurchase of shares to satisfy tax obligations (59,821, 61,710 and 40,148 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		(1,228	)		(999	)		(532	)
Shares issued upon vesting of restricted stock unit awards (202,466, 180,997 and 146,149 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		3,205			2,406			1,737
Purchase of common shares to fund options exercised (97,518, 366,517 and 65,074 common shares for the years ended December 31, 2014 2013 and 2012, respectively)		(1,962	)		(6,814	)		(906	)
Balance, end of year		(37,221	)		(22,053	)		(10,257	)

Continued

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity(continued)

	For the years ended December 31,
	2014			2013			2012
	(Dollars in thousands, except per share data)
Retained Earnings
Balance, beginning of year		263,743			241,856			223,510
Net income		44,239			37,752			34,331
Stock options exercised (11,540, 65,470, and 24,820 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		(77	)		(128	)		(63	)
Shares issued upon vesting of restricted stock unit awards (195,166, 60,883 and 32,877 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		(430	)		(119	)		(105	)
Cash dividends declared and paid on common shares ($0.60, $0.52 and $0.52 per share for the years ended December 31, 2014, 2013 and 2012, respectively)		(17,853	)		(15,618	)		(15,817	)
Balance, end of year		289,622			263,743			241,856
Accumulated Other Comprehensive Income (Loss), Net of Taxes
Balance, beginning of year		(11,375	)		12,137			4,813
Amortization of prior service credits, net of taxes of $19, $20 and $20 for the years ended December 31, 2014, 2013 and 2012, respectively		(26	)		(26	)		(26	)
Amortization of net actuarial losses, net of taxes of ($330), ($541) and ($456) for the years ended December 31, 2014, 2013 and 2012, respectively		370			696			587
Unrecognized actuarial gains (losses), net of taxes of $2,880, ($2,527) and $340 for the years ended December 31, 2014, 2013 and 2012, respectively		(3,790	)		3,261			(479	)
Change in net unrealized (losses) gains on securities available for sale, net of taxes of approximately ($10,441), $20,609 and ($5,259) for the years ended December 31, 2014, 2013 and 2012, respectively		13,548			(26,541	)		6,831
Reclassification adjustment for (gains) losses included in net income, net of taxes of approximately $1,241, $700 and ($318) for the years ended December 31, 2014, 2013 and 2012, respectively		(1,634	)		(902	)		411
Balance, end of year		(2,907	)		(11,375	)		12,137
Total Stockholders' Equity	$	456,247		$	432,532		$	442,365

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Operating Activities
Net income	$	44,239		$	37,752		$	34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Depreciation and amortization of premises and equipment		2,813			2,953			3,207
Net loss on sales of loans held for sale		-			108			9
Net gain on sales of loans (including delinquent loans)		(67	)		(284	)		(31	)
Net gain on sales of securities		(2,875	)		(3,021	)		(47	)
Other-than-temporary impairment charge on securities		-			1,419			776
Amortization of premium, net of accretion of discount		7,292			7,588			6,643
Fair value adjustment for financial assets and financial liabilities		2,568			2,521			(55	)
Income from bank owned life insurance		(3,050	)		(3,363	)		(2,790	)
Stock based compensation expense		4,263			3,412			3,260
Deferred compensation		(2,514	)		(790	)		(86	)
Amortization of core deposit intangibles		-			468			469
Excess tax provision (benefits) from stock-based payment arrangements		(846	)		(443	)		303
Deferred income tax provision (benefit)		4,154			(682	)		(804	)
Net decrease in prepaid FDIC assessment		-			3,287			3,888
(Decrease) increase in other assets		8,110			(1,410	)		(3,695	)
Increase (decrease) in other liabilities		(690	)		10,985			4,719
Net cash provided by operating activities		57,376			74,435			71,097
Investing Activities
Purchases of premises and equipment		(4,325	)		(809	)		(1,290	)
Net purchases of Federal Home Loan Bank-NY shares		(899	)		(3,688	)		(12,092	)
Purchases of securities available for sale		(162,830	)		(458,596	)		(311,654	)
Proceeds from sales and calls of securities available for sale		115,294			194,009			12,637
Proceeds from maturities and prepayments of securities available for sale		112,137			149,387			170,798
Net originations of loans		(248,073	)		(236,582	)		(78,379	)
Purchases of loans		(169,860	)		(10,189	)		(3,456	)
Proceeds from sale of delinquent loans		15,857			35,681			44,223
Purchase of bank owned life insurance		-			-			(20,000	)
Proceeds from sale of Real Estate Owned		3,123			4,763			1,225
Net cash used in investing activities		(339,576	)		(326,024	)		(197,988	)

Continued

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Statements of Cash Flows(continued)

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Financing Activities
Net increase in non-interest bearing deposits		58,491			41,554			37,282
Net (decrease) increase in interest bearing deposits		213,502			174,715			(172,193	)
Net increase in mortgagors' escrow deposits		2,881			238			2,774
Net proceeds (repayments) from short-term borrowed funds		30,500			(102,500	)		132,000
Proceeds from long-term borrowings		180,000			269,346			212,518
Repayment of long-term borrowings		(167,081	)		(109,911	)		(80,000	)
Purchases of treasury stock		(18,872	)		(14,151	)		(5,551	)
Excess tax benefits (provision) from stock-based payment arrangements		846			443			(303	)
Proceeds from issuance of common stock upon exercise of stock options		565			533			885
Cash dividends paid		(17,852	)		(15,618	)		(15,817	)
Net cash provided by financing activities		282,980			244,649			111,595
Net (decrease) increase in cash and cash equivalents		780			(6,940	)		(15,296	)
Cash and cash equivalents, beginning of year		33,485			40,425			55,721
Cash and cash equivalents, end of year	$	34,265		$	33,485		$	40,425
Supplemental Cash Flow Disclosure
Interest paid	$	53,965		$	53,602		$	62,368
Income taxes paid		24,943			21,389			21,947
Taxes paid if excess tax benefits on stock-based compensation were not tax deductible		25,789			21,832			21,644
Non-cash activities:
Loans transferred to Other Real Estate Owned		7,112			5,369			6,127
Loans provided for the sale of Other Real Estate Owned		712			3,011			2,110
Loans held for investment transferred to loans held for sale		1,150			13,008			12,200
Loans held for sale transferred to loans held for investment		-			2,214			400

The accompanying notes are an integral part of these consolidated financial statements.

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FLUSHING FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the years ended December 31, 2014, 2013 and 2012

1. Nature of Operations

Flushing Financial Corporation (the “Holding Company”), a Delaware business corporation, is a bank holding company. On February 28, 2013 the Holding Company’s wholly owned subsidiary Flushing Savings Bank, FSB (the “Savings Bank) merged with and into Flushing Commercial Bank (the “Merger”). Flushing Commercial Bank was the surviving entity of the Merger, whose name was changed to Flushing Bank (the “Bank”). The Holding Company and its direct and indirect wholly-owned subsidiaries, including the Bank, Flushing Preferred Funding Corporation, Flushing Service Corporation, and FSB Properties Inc., are collectively herein referred to as the “Company.”

The Merger was the result of the combination of two entities under common control, and in accordance with ASC 805-50-30-5, the Bank measured the recognized assets and liabilities transferred at their carrying amounts (historical cost) for this transaction.

The Company’s principal business is attracting retail deposits from the general public and investing those depositstogether with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential properties, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans, primarily for residential properties; (3) Small Business Administration (“SBA”) loans and other small business loans;  (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. The Bank also originates certain other consumer loans including overdraft lines of credit. The Bank primarily conducts its business through seventeen full-service banking offices, nine of which are located in Queens County, two in Nassau County, five in Kings County (Brooklyn), and one in New York County (Manhattan), New York. The Bank also operates “iGObanking.com®”, an internet branch, offering checking, savings, money market and certificates of deposit accounts.

2. Summary of Significant Accounting Policies

The accounting and reporting policies of the Company follow generally accepted accounting principles in the United States of America (“GAAP”) and general practices within the banking industry. The policies which materially affect the determination of the Company’s financial position, results of operations and cash flows are summarized below.

Principles of Consolidation:

The accompanying consolidated financial statements include the accounts of the Holding Company and the following direct and indirect wholly-owned subsidiaries of the Holding Company: the Bank, Flushing Preferred Funding Corporation (“FPFC”), Flushing Service Corporation (“FSC”), and FSB Properties Inc. (“Properties”). FPFC is a real estate investment trust formed to hold a portion of the Bank’s mortgage loans to facilitate access to capital markets. FSC was formed to market insurance products and mutual funds. Properties is currently used to hold title to real estate owned that is obtained via foreclosure.  All intercompany transactions and accounts are eliminated in consolidation. The Holding Company currently has three unconsolidated subsidiaries in the form of wholly-owned statutory business trusts, which were formed to issue guaranteed capital debentures (“capital securities”). Please see Note 9, “Borrowed Funds and Securities Sold Under Agreements to Repurchase,” for additional information regarding these trusts.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for loan losses, the evaluation of goodwill for impairment, the review of the need for a valuation allowance of the Company’s deferred tax assets, the fair value of the investment portfolio and the evaluation of other-than-temporary impairment (“OTTI”) on securities. The current economic environment has increased the degree of uncertainty inherent in these material estimates.  Actual results could differ from these estimates.

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Cash and Cash Equivalents:

For the purpose of reporting cash flows, the Company defines cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less as cash and cash equivalents. At December 31, 2014 and 2013, the Company’s cash and cash equivalents totaled $34.3 million and $33.5 million, respectively. Included in cash and cash equivalents at those dates were $23.0 million and $23.7 million in interest-earning deposits in other financial institutions, primarily consisting of balances due from the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York (“FHLB-NY”). The Bank is required to maintain cash reserves equal to a percentage of certain deposits. The reserve requirement totaled $7.5 million and $10.1 million at December 31, 2014 and 2013, respectively.

Securities Available for Sale:

Securities are classified as available for sale when management intends to hold the securities for an indefinite period of time or when the securities may be utilized for tactical asset/liability purposes and may be sold from time to time to effectively manage interest rate exposure and resultant prepayment risk and liquidity needs. Premiums and discounts are amortized or accreted, respectively, using the level-yield method. Realized gains and losses on the sales of securities are determined using the specific identification method. Unrealized gains and losses (other than unrealized losses considered other-than-temporary which are recognized in the Consolidated Statements of Income) on securities available for sale are excluded from earnings and reported as part of accumulated other comprehensive income, net of taxes. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the current interest rate environment, (3) the financial condition and near-term prospects of the issuer, if applicable, and (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Other-than-temporary impairment losses for debt securities are measured using a discounted cash flow model. Other-than-temporary impairment losses for equity securities are measured using quoted market prices, when available, or, when market quotes are not available due to an illiquid market, we use an impairment model from a third party or quotes from investment brokers.

Goodwill:

Goodwill is presumed to have an indefinite life and is tested annually, or when certain conditions are met, for impairment, rather than amortized. If the fair value of the reporting unit is greater than the goodwill amount, no further evaluation is required. If the fair value of the reporting unit is less than the goodwill amount, further evaluation would be required to compare the fair value of the reporting unit to the goodwill amount and determine if a write down is required.

The FASB issued ASU 2011-08, which gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test described in ASC 350. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required.

In performing the goodwill impairment testing, the Company has identified a single reporting unit. The Company performed the qualitative assessment as outlined in ASU 2011-08 in assessing the carrying value of goodwill as of December 31, 2014 and determined that there was no goodwill impairment. At December 31, 2014, the carrying amount of goodwill totaled $16.1 million. The identification of additional reporting units, the use of other valuation techniques and/or changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment.

Loans:

Loans are reported at their principal outstanding balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Interest on loans is recognized on the accrual basis. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Subsequent cash payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Subsequent cash payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is unlikely to occur. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

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Allowance for Loan Losses:

The Company maintains an allowance for loan losses at an amount, which, in management’s judgment, is adequate to absorb probable estimated losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance is established through a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of the Company’s  lenders, collection policies and experience, internal loan review function and other external factors.  Additionally, the Company segregated our loans into two portfolios based on year of origination. One portfolio was reviewed for loans originated after December 31, 2009 and a second portfolio for loans originated prior to January 1, 2010. Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during 2009. By the end of 2009, all loans were being underwritten based on revised and tightened underwriting standards.  Loans originated prior to 2010 have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to 2010 has a similar delinquency rate. The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately. All non-accrual loans are classified impaired. The Company’s Board of Directors reviews and approves management’s evaluation of the adequacy of the allowance for loan losses on a quarterly basis.

The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Increases and decreases in the allowance other than charge-offs and recoveries are included in the provision for loan losses. When a loan or a portion of a loan is determined to be uncollectible, the portion deemed uncollectible is charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.

The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due 90 days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Appraisals are obtained and/or updated internal evaluations are prepared as soon as practical, and before the loan becomes 90 days delinquent. The loan balances of collateral dependent impaired loans are compared to the property’s updated fair value. The Company considers fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off.  Management reviews the allowance for loan losses on a quarterly basis, and records as a provision the amount deemed appropriate, after considering items such as, current year charge-offs, charge-off trends, new loan production, current balance by particular loan categories, and delinquent loans by particular loan categories.

A loan is considered impaired when, based upon current information, the Company believes it is probable that it will be unable to collect all amounts due, both principal and interest, in accordance with the original terms of the loan. Impaired loans are measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or, as a practical expedient, the fair value of the collateral if the loan is collateral dependent. Interest income on impaired loans is recorded on the cash basis. The Company’s management considers all non-accrual loans impaired.

The Company reviews each impaired loan on an individual basis to determine if either a charge-off or a valuation allowance needs to be allocated to the loan. The Company does not charge-off or allocate a valuation allowance to loans for which management has concluded the current value of the underlying collateral will allow for recovery of the loan balance either through the sale of the loan or by foreclosure and sale of the property.

The Company evaluates the underlying collateral through a third party appraisal, or when a third party appraisal is not available, the Company will use an internal evaluation. The internal evaluations are prepared using an income approach or a sales approach. The income approach is used for income producing properties and uses current revenues less operating expenses to determine the net cash flow of the property. Once the net cash flow is determined, the value of the property is calculated using an appropriate capitalization rate for the property. The sales approach uses comparable sales prices in the market.  When an internal evaluation is used, we place greater reliance on the income approach to value the collateral.

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In preparing internal evaluations of property values, the Company seeks to obtain current data on the subject property from various sources, including: (1) the borrower; (2) copies of existing leases; (3) local real estate brokers and appraisers; (4) public records (such as real estate taxes and water and sewer charges); (5) comparable sales and rental data in the market; (6) an inspection of the property and (7) interviews with tenants. These internal evaluations primarily focus on the income approach and comparable sales data to value the property.

As of December 31, 2014, we utilized recent third party appraisals of the collateral to measure impairment for $31.0 million, or 68.8%, of collateral dependent impaired loans, and used internal evaluations of the property’s value for $14.1 million, or 31.2%, of collateral dependent impaired loans.

The Company may restructure a loan to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as Troubled Debt Restructured (“TDR”).

These restructurings have not included a reduction of principal balance. The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. Restructured loans are classified as a TDR when the Bank grants a concession to a borrower who is experiencing financial difficulties. All loans classified as TDR are considered impaired, however TDR loans which have been current for six consecutive months at the time they are restructured as TDR remain on accrual status and are not included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-performing loans until they have made timely payments for six consecutive months. Loans that are restructured as TDR but are not performing in accordance with the restructured terms are placed on non-accrual status and reported as non-performing loans.

The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR which is collateral dependent, the fair value of the collateral. At December 31, 2014, there were no commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did not have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.

Loans Held for Sale:

Loans held for sale are carried at the lower of cost or estimated fair value. At December 31, 2014, there were no loans classified as held for sale. At December 31, 2013, loans held for sale consisted of one non-performing multi-family residential loan for $0.4 million.

Bank Owned Life Insurance:

Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. BOLI is carried in the consolidated statements of financial position at its cash surrender value. Increases in the cash value of the policies, as well as proceeds received, are recorded in other non-interest income, and are not subject to income taxes.

Other Real Estate Owned:

Other real estate owned (“OREO”) consists of property acquired by foreclosure. These properties are carried at fair value. The fair value is based on appraised value through a current appraisal, or at times through an internal review, additionally adjusted by the estimated costs to sell the property.  This determination is made on an individual asset basis. If the fair value of a property is less than the carrying amount, the difference is recognized as a valuation allowance. Further decreases to the estimated value will be charged directly to expense.

Bank Premises and Equipment:

Bank premises and equipment are stated at cost, less depreciation accumulated on a straight-line basis over the estimated useful lives of the related assets (3 to 40 years). Leasehold improvements are amortized on a straight-line basis over the term of the related leases or the lives of the assets, whichever is shorter. Maintenance, repairs and minor improvements are charged to non-interest expense in the period incurred.

Federal Home Loan Bank Stock:

The FHLB-NY has assigned to the Bank a mandated membership stock purchase, based on its asset size.  In addition, for all borrowing activity, the Bank is required to purchase shares of FHLB-NY non-marketable capital stock at par.  Such shares are redeemed by FHLB-NY at par with reductions in the Bank’s borrowing levels. The Bank carries its investment in FHLB-NY stock at historical cost. The Company periodically reviews its FHLB-NY stock to determine if impairment exists.  At December 31, 2014, the Company considered among other things the earnings performance, credit rating and asset quality of the FHLB-NY. Based on this review, the Company did not consider the value of our investment in FHLB-NY stock to be impaired at December 31, 2014.

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Securities Sold Under Agreements to Repurchase:

Securities sold under agreements to repurchase are accounted for as collateralized financing and are carried at amounts at which the securities will be subsequently reacquired as specified in the respective agreements. Interest incurred under these agreements is included in other interest expense.

Income Taxes:

Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between book and tax bases of the various balance sheet assets and liabilities. A deferred tax liability is recognized on all taxable temporary differences and a deferred tax asset is recognized on all deductible temporary differences and operating losses and tax credit carry-forwards.  A valuation allowance is recognized to reduce the potential deferred tax asset if it is “more likely than not” that all or some portion of that potential deferred tax asset will not be realized.  The Company must also take into account changes in tax laws or rates when valuing the deferred income tax amounts it carries on its Consolidated Statements of Financial Condition.

Stock Compensation Plans:

The Company accounts for its stock based compensation in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 “Stock Compensation” which establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires a fair-value-based measurement method in accounting for share-based payment transactions with employees. It also requires measurement of the cost of employee services received in exchange for an award of an equity instrument based on the grant date fair value of the award.  That cost is recognized over the period during which an employee is required to provide service in exchange for the award. The requisite service period is usually the vesting period.

Benefit Plans:

The Company sponsors a qualified pension, 401(k), and profit sharing plan for its employees. The Company also sponsors postretirement health care and life insurance benefits plans for its employees, a non-qualified deferred compensation plan for officers who have achieved the level of at least senior vice president, and a non-qualified pension plan for its outside directors.

The Company recognizes the funded status of a benefit plan – measured as the difference between plan assets at fair value and the benefit obligation – in the statement of financial condition, with the unrecognized credits and charges recognized, net of taxes, as a component of accumulated other comprehensive income. These credits or charges arose as a result of gains or losses and prior service costs or credits that arose during prior periods but were not recognized as components of net periodic benefit cost.

Treasury Stock:

The Company records treasury stock at cost. Treasury stock is reissued at average cost.

Derivatives:

Derivatives are required to be recorded on the Consolidated Statements of Financial Condition at fair value. The Company records derivatives on a gross basis in “Other assets” and “Other liabilities” in the Consolidated Statements of Financial Condition.  The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued.

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Segment Reporting:

Management views the Company as operating as a single unit, a community bank. Therefore, segment information is not provided.

Advertising Expense:

Costs associated with advertising are expensed as incurred. The Company recorded advertising expenses of $1.8 million, $1.9 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Earnings per Common Share:

Earnings per share are computed in accordance with ASC Topic 260 “Earnings Per Share.” Basic earnings per common share is computed by dividing net income available to common shareholders by the total weighted average number of common shares outstanding, which includes unvested participating securities. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and as such are included in the calculation of earnings per share.  The Company’s unvested restricted stock and restricted stock unit awards are considered participating securities. Therefore, weighted average common shares outstanding used for computing basic earnings per common share includes common shares outstanding plus unvested restricted stock and restricted stock unit awards. The computation of diluted earnings per share includes the additional dilutive effect of stock options outstanding and other common stock equivalents during the period.  Common stock equivalents that are anti-dilutive are not included in the computation of diluted earnings per common share. The numerator for calculating basic and diluted earnings per common share is net income available to common shareholders. The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per common share.

Earnings per common share have been computed based on the following, for the years ended December 31:

	2014			2013			2012
	(In thousands, except per share data)
Net income, as reported	$	44,239		$	37,752		$	34,331
Divided by:
Weighted average common shares outstanding		29,788			30,047			30,402
Weighted average common stock equivalents		29			26			31
Total weighted average common shares outstanding and common stock equivalents		29,817			30,073			30,433
Basic earnings per common share	$	1.49		$	1.26		$	1.13
Diluted earnings per common share	$	1.48		$	1.26		$	1.13
Dividend Payout ratio		40.3	%		41.3	%		46.0	%

There were no options that were anti-dilutive for the year ended December 31, 2014. Options to purchase 151,900 shares, at an average exercise price of $18.55, and 550,400 shares, at an average exercise price of $17.63, are anti-dilutive and were not included in the computation of diluted earnings per common share for the years ended December 31, 2013 and 2012, respectively.

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3. Loans

The composition of loans is as follows at December 31:

	2014		2013
	(In thousands)
Multi-family residential	$	1,923,460	$	1,712,039
Commercial real estate		621,569		512,552
One-to-four family ― mixed-use property		573,779		595,751
One-to-four family ― residential		187,572		193,726
Co-operative apartments		9,835		10,137
Construction		5,286		4,247
Small Business Administration		7,134		7,792
Taxi medallion		22,519		13,123
Commercial business and other		447,500		373,641
Gross loans		3,798,654		3,423,008
Unearned loan fees and deferred costs, net		11,719		11,170
Total loans	$	3,810,373	$	3,434,178

The total amount of loans on non-accrual status was $31.9 million and $48.0 million at December 31, 2014 and 2013, respectively.  The total amount of loans classified as impaired, which includes all loans on non-accrual status, was $56.5 million and $81.8 million at December 31, 2014 and 2013, respectively. We generally adjust the carrying value of collateral dependent impaired loans to their fair value with a charge to the allowance for loan losses. The average balance of impaired loans was $65.8 million and $95.0 million for 2014 and 2013, respectively.

The Company may restructure a loan to enable a borrower to continue making payments when it is deemed to be in our best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. The Company classifies these loans as a TDR.

There were no loans modified and classified as TDR during the year ended December 31, 2014.

The following table shows loans modified and classified as TDR during the year ended December 31, 2013:

	For the year ended December 31, 2013
(Dollars in thousands)	Number		Balance		Modification description
Multi-family residential		2	$	698	Received a below market interest rate and the loan amortization was extended
Commercial real estate		1		273	Received a below market interest rate and the loan amortization was extended
One-to-four family - mixed-use property		1		390	Received a below market interest rate and the loan amortization was extended
Commercial business and other		2		687	Received a below market interest rate and the loan amortization was extended
Total		6	$	2,048

The recorded investment of each of the loans modified and classified to a TDR, presented in the table above, was unchanged as there was no principal forgiven in any of these modifications.

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The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		10	$	3,034		10	$	3,087
Commercial real estate		3		2,373		3		2,407
One-to-four family - mixed-use property		7		2,381		8		2,692
One-to-four family - residential		1		354		1		364
Construction		-		-		1		746
Commercial business and other		4		2,249		5		4,406
Total performing troubled debt restructured		25	$	10,391		28	$	13,702

During the year ended December 31, 2014, three TDR loans totaling $2.7 million were transferred to non-performing status, which resulted in these loans being included in non-performing loans. Two of these loans, subsequent to being transferred to non-performing loans, were paid in full during the year ended December 31, 2014.  Additionally, during the year ended December 31, 2014, one loan for $0.4 million was transferred from performing non-accrual status to performing accrual status as it has made timely payments for six consecutive months. During the year ended December 31, 2013, no TDR loans were transferred to non-performing status.

The following table shows our recorded investment for loans classified as TDR that are not performing according to their restructured terms at the periods indicated:

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Commercial real estate		1	$	2,252		1	$	2,332
One-to-four family - mixed-use property		1		187		-		-
Total troubled debt restructurings that subsequently defaulted		2	$	2,439		1	$	2,332

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The following table shows our non-performing loans at the periods indicated:

	At December 31,
(In thousands)	2014		2013
Loans ninety days or more past due and still accruing:
Multi-family residential	$	676	$	52
Commercial real estate		820		-
One-to-four family mixed-use property		405		-
One-to-four family residential		14		15
Commercial Business and other		386		539
Total		2,301		606
Non-accrual mortgage loans:
Multi-family residential		6,878		13,297
Commercial real estate		5,689		9,962
One-to-four family mixed-use property		6,936		9,063
One-to-four family residential		11,244		13,250
Co-operative apartments		-		57
Total		30,747		45,629
Non-accrual non-mortgage loans:
Commercial Business and other		1,143		2,348
Total		1,143		2,348
Total non-accrual loans		31,890		47,977
Total non-accrual loans and ninety days or more past due and still accruing	$	34,191	$	48,583

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the years ended December 31:

	2014		2013		2012
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	2,919	$	4,656	$	9,026
Less: Interest income included in the results of operations		796		1,213		1,692
Total foregone interest	$	2,123	$	3,443	$	7,334

95

The following table shows an age analysis of our recorded investment in loans at December 31, 2014:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	7,721	$	1,729	$	7,554	$	17,004	$	1,906,456	$	1,923,460
Commercial real estate		1,612		1,903		6,510		10,025		611,544		621,569
One-to-four family - mixed-use property		10,408		1,154		7,341		18,903		554,876		573,779
One-to-four family - residential		1,751		2,244		11,051		15,046		172,526		187,572
Co-operative apartments		-		-		-		-		9,835		9,835
Construction loans		3,000		-		-		3,000		2,286		5,286
Small Business Administration		90		-		-		90		7,044		7,134
Taxi medallion		-		-		-		-		22,519		22,519
Commercial business and other		6		1,585		740		2,331		445,169		447,500
Total	$	24,588	$	8,615	$	33,196	$	66,399	$	3,732,255	$	3,798,654

The following table shows an age analysis of our recorded investment in loans at December 31, 2013:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	14,101	$	3,684	$	13,349	$	31,134	$	1,680,905	$	1,712,039
Commercial real estate		5,029		7,699		9,962		22,690		489,862		512,552
One-to-four family - mixed-use property		14,017		1,099		9,063		24,179		571,572		595,751
One-to-four family - residential		3,828		518		12,968		17,314		176,412		193,726
Co-operative apartments		99		-		144		243		9,894		10,137
Construction loans		-		-		-		-		4,247		4,247
Small Business Administration		106		-		-		106		7,686		7,792
Taxi medallion		-		-		-		-		13,123		13,123
Commercial business and other		187		2		1,752		1,941		371,700		373,641
Total	$	37,367	$	13,002	$	47,238	$	97,607	$	3,325,401	$	3,423,008

96

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2014:

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-	$	5,320		$	31,776
Charge-off's		(1,161	)		(325	)		(423	)		(103	)		-			-			(49	)		-		(381	)		(2,442	)
Recoveries		150			481			608			269			7			-			92			-		176			1,783
Provision (benefit)		(2,246	)		(913	)		(673	)		(555	)		(111	)		(402	)		(222	)		11		(910	)		(6,021	)
Ending balance	$	8,827		$	4,202		$	5,840		$	1,690		$	-		$	42		$	279		$	11	$	4,205		$	25,096
Ending balance: individually evaluated for impairment	$	286		$	21		$	579		$	54		$	-		$	-		$	-		$	-	$	154		$	1,094
Ending balance: collectively evaluated for impairment	$	8,541		$	4,181		$	5,261		$	1,636		$	-		$	42		$	279		$	11	$	4,051		$	24,002
Financing Receivables:
Ending balance	$	1,923,460		$	621,569		$	573,779		$	187,572		$	9,835		$	5,286		$	7,134		$	22,519	$	447,500		$	3,798,654
Ending balance: individually evaluated for impairment	$	13,260		$	9,473		$	15,120		$	13,170		$	-		$	-		$	-		$	-	$	5,492		$	56,515
Ending balance: collectively evaluated for impairment	$	1,910,200		$	612,096		$	558,659		$	174,402		$	9,835		$	5,286		$	7,134		$	22,519	$	442,008		$	3,742,139

97

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2013:

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	13,001		$	5,705		$	5,960		$	1,999		$	46		$	66		$	505		$	7		$	3,815		$	31,104
Charge-off's		(3,585	)		(1,051	)		(4,206	)		(701	)		(108	)		(2,678	)		(457	)		-			(2,057	)		(14,843	)
Recoveries		541			324			266			272			4			-			87			-			86			1,580
Provision (benefit)		2,127			(19	)		4,308			509			162			3,056			323			(7	)		3,476			13,935
Ending balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-		$	5,320		$	31,776
Ending balance: individually evaluated for impairment	$	312		$	164		$	875		$	58		$	-		$	17		$	-		$	-		$	222		$	1,648
Ending balance: collectively evaluated for impairment	$	11,772		$	4,795		$	5,453		$	2,021		$	104		$	427		$	458		$	-		$	5,098		$	30,128
Financing Receivables:
Ending balance	$	1,712,039		$	512,552		$	595,751		$	193,726		$	10,137		$	4,247		$	7,792		$	13,123		$	373,641		$	3,423,008
Ending balance: individually evaluated for impairment	$	21,757		$	19,757		$	16,939		$	14,390		$	59		$	746		$	-		$	-		$	8,120		$	81,768
Ending balance: collectively evaluated for impairment	$	1,690,282		$	492,795		$	578,812		$	179,336		$	10,078		$	3,501		$	7,792		$	13,123		$	365,521		$	3,341,240

98

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	10,481	$	11,551	$	-	$	14,168	$	194
Commercial real estate		7,100		7,221		-		11,329		51
One-to-four family mixed-use property		12,027		13,381		-		12,852		321
One-to-four family residential		12,816		15,709		-		13,015		103
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		285		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,779		3,149		-		3,428		137
Total loans with no related allowance recorded		45,203		51,011		-		55,077		806
With an allowance recorded:
Mortgage loans:
Multi-family residential		2,779		2,779		286		2,936		149
Commercial real estate		2,373		2,373		21		3,242		167
One-to-four family mixed-use property		3,093		3,093		579		3,249		170
One-to-four family residential		354		354		54		358		14
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		187		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,713		2,713		154		3,149		115
Total loans with an allowance recorded		11,312		11,312		1,094		13,121		615
Total Impaired Loans:
Total mortgage loans	$	51,023	$	56,461	$	940	$	61,621	$	1,169
Total non-mortgage loans	$	5,492	$	5,862	$	154	$	6,577	$	252

99

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2013:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	18,709	$	20,931	$	-	$	22,091	$	402
Commercial real estate		16,721		17,405		-		19,846		266
One-to-four family mixed-use property		12,748		15,256		-		13,916		319
One-to-four family residential		14,026		17,527		-		14,529		125
Co-operative apartments		59		147		-		189		-
Construction		-		118		-		4,014		-
Non-mortgage loans:
Small Business Administration		-		-		-		247		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		3,225		5,527		-		5,309		268
Total loans with no related allowance recorded		65,488		76,911		-		80,141		1,380
With an allowance recorded:
Mortgage loans:
Multi-family residential		3,048		3,049		312		2,892		170
Commercial real estate		3,036		3,102		164		6,388		194
One-to-four family mixed-use property		4,191		4,221		875		4,041		228
One-to-four family residential		364		364		58		368		15
Co-operative apartments		-		-		-		-		-
Construction		746		746		17		1,929		18
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		4,895		4,894		222		4,354		239
Total loans with an allowance recorded		16,280		16,376		1,648		19,972		864
Total Impaired Loans:
Total mortgage loans	$	73,648	$	82,866	$	1,426	$	90,203	$	1,737
Total non-mortgage loans	$	8,120	$	10,421	$	222	$	9,910	$	507

100

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”.  If a loan does not fall within one of the previous mentioned categories then the loan would be considered “Pass.” These loan designations are updated quarterly.  We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment.  The Company does not hold any loans designated as loss, as loans that are designated as Loss are charged to the Allowance for Loan Losses. Loans that are non-accrual are designated as Substandard, Doubtful or Loss. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications, but does contain a potential weakness that deserves closer attention.

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2014:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	6,494	$	10,226	$	-	$	-	$	16,720
Commercial real estate		5,453		7,100		-		-		12,553
One-to-four family - mixed-use property		5,254		12,499		-		-		17,753
One-to-four family - residential		2,352		13,056		-		-		15,408
Co-operative apartments		623		-		-		-		623
Construction loans		-		-		-		-		-
Small Business Administration		479		-		-		-		479
Commercial business and other		2,841		3,779		-		-		6,620
Total loans	$	23,496	$	46,660	$	-	$	-	$	70,156

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2013:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	9,940	$	19,089	$	-	$	-	$	29,029
Commercial real estate		13,503		16,820		-		-		30,323
One-to-four family - mixed-use property		7,992		14,898		-		-		22,890
One-to-four family - residential		2,848		14,026		-		-		16,874
Co-operative apartments		-		59		-		-		59
Construction loans		746		-		-		-		746
Small Business Administration		310		-		-		-		310
Commercial business and other		7,314		8,450		50		-		15,814
Total loans	$	42,653	$	73,342	$	50	$	-	$	116,045

101

The following table shows the activity in the allowance for loan losses for the years ended December 31:

	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	31,776		$	31,104		$	30,344
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Charge-offs		(2,442	)		(14,843	)		(21,269	)
Recoveries		1,783			1,580			1,029
Balance, end of year	$	25,096		$	31,776		$	31,104

The following are net loan charge-offs (recoveries) by loan type for the years ended December 31:

	2014			2013		2012
	(In thousands)
Multi-family residential	$	1,011		$	3,044	$	5,872
Commercial real estate		(156	)		727		2,439
One-to-four family ― mixed-use property		(185	)		3,940		3,928
One-to-four family ― residential		(166	)		429		1,554
Co-operative apartments		(7	)		104		62
Construction		-			2,678		4,591
Small Business Administration		(43	)		370		237
Commercial business and other		205			1,971		1,557
Total net loan charge-offs	$	659		$	13,263	$	20,240

4. Loans held for sale

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually will close in a short period of time, generally within the same quarter.  Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale include cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer.

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2014
(Dollars in thousands)	Loans sold		Proceeds		Net (charge-offs) recoveries			Net gain
Multi-family residential		12	$	5,759	$	(80	)	$	9
Commercial real estate		6		4,635		295			8
One-to-four family - mixed-use property		14		5,399		122			50
Commercial business and other		2		64		20			-
Total		34	$	15,857	$	357		$	67

102

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2013
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		21	$	11,420	$	(1,024	)	$	99
Commercial real estate		9		5,488		(703	)		6
One-to-four family - mixed-use property		39		11,427		(2,791	)		(52	)
Construction		2		5,066		(164	)		-
Commercial business and other		1		-		(21	)		-
Total		72	$	33,401	$	(4,703	)	$	53

The above table does not include one performing commercial real estate loan for $2.4 million which was sold for a net gain of $0.2 million during the year ended December 31, 2013.

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2012
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		34	$	21,429	$	(2,974	)	$	(46	)
Commercial real estate		11		5,869		(572	)		-
One-to-four family - mixed-use property		25		8,270		(1,927	)		-
Construction		3		2,540		(57	)		-
Commercial business and other		4		6,115		(136	)		8
Total		77	$	44,223	$	(5,666	)	$	(38	)

The above table does not include $0.7 million of performing Small Business Administration loans that were sold for a net gain of $60,000 during the year ended December 31, 2012.

5. Other Real Estate Owned

The following table shows the activity in OREO during the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Balance at beginning of year	$	2,985		$	5,278		$	3,179
Acquisitions		7,112			5,369			6,127
Reductions to carrying value		(5	)		(243	)		(516	)
Sales		(3,766	)		(7,419	)		(3,512	)
Balance at end of year	$	6,326		$	2,985		$	5,278

103

The following table shows the gross gains, gross losses and write-downs of OREO reported in the Consolidated Statements of Income during the periods presented:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains	$	178		$	443		$	78
Gross losses		(109	)		(89	)		(255	)
Write-down of carrying value		(5	)		(243	)		(516	)
Total	$	64		$	111		$	(693	)

6. Debt and Equity Securities

The Company’s investments in equity securities that have readily determinable fair values and all investments in debt securities are classified in one of the following three categories and accounted for accordingly: (1) trading securities, (2) securities available for sale and (3) securities held-to-maturity.

The Company did not hold any trading securities or securities held-to-maturity during the years ended December 31, 2014 and 2013. Securities available for sale are recorded at fair value.

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2014:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	90,719	$	91,273	$	1,268	$	714
Municipals		145,864		148,896		3,093		61
Mutual funds		21,118		21,118		-		-
Other		7,098		7,090		-		8
Total other securities		264,799		268,377		4,361		783
REMIC and CMO		504,207		505,768		6,188		4,627
GNMA		13,862		14,159		421		124
FNMA		169,956		170,367		2,128		1,717
FHLMC		14,505		14,639		142		8
Total mortgage-backed securities		702,530		704,933		8,879		6,476
Total securities available for sale	$	967,329	$	973,310	$	13,240	$	7,259

Mortgage-backed securities shown in the table above include three private issue collateralized mortgage obligations (“CMO”) that are collateralized by commercial real estate mortgages with an amortized cost and market value of $12.4 million at December 31, 2014.

104

The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014.

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,287	$	714	$	9,573	$	428	$	29,714	$	286
Municipals		8,810		61		3,546		11		5,264		50
Other		292		8		-		-		292		8
Total other securities		48,389		783		13,119		439		35,270		344
REMIC and CMO		216,190		4,627		77,382		399		138,808		4,228
GNMA		8,358		124		-		-		8,358		124
FNMA		95,148		1,717		-		-		95,148		1,717
FHLMC		6,773		8		6,773		8		-		-
Total mortgage-backed securities		326,469		6,476		84,155		407		242,314		6,069
Total securities available for sale	$	374,858	$	7,259	$	97,274	$	846	$	277,584	$	6,413

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive income (“AOCI”) within Stockholders’ Equity.

The Company reviewed each investment that had an unrealized loss at December 31, 2014. An unrealized loss exists when the current fair value of an investment is less than its amortized cost basis. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCI, net of tax.  Unrealized losses that are considered to be other-than-temporary are split between credit related and noncredit related impairments, with the credit related impairment being recorded as a charge against earnings and the noncredit related impairment being recorded in AOCI, net of tax.

Corporate Securities:

The unrealized losses in Corporate securities at December 31, 2014 consist of losses on five Corporate securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

Municipal Securities:

The unrealized losses in Municipal securities at December 31, 2014, consist of losses on three municipal securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

105

Other Securities:

The unrealized losses in Other Securities at December 31, 2014, consist of losses on one single issuer trust preferred security. The unrealized losses on this security were caused by market interest volatility, a significant widening of credit spreads across markets for these securities and illiquidity and uncertainty in the financial markets. This security is currently rated below investment grade. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell this security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this investment to be other-than-temporarily impaired at December 31, 2014.

During the year ended December 31, 2014, three pooled trust preferred securities for which OTTI charges were recorded in previous periods, were sold for proceeds totaling $11.1 million, recording a net loss on sale of $2.3 million.

REMIC and CMO:

The unrealized losses in Real Estate Mortgage Investment Conduit (“REMIC”) and Collateralized Mortgage Obligation (“CMO”) securities at December 31, 2014 consist of seven issues from the Federal Home Loan Mortgage Corporation (“FHLMC”), 14 issues from the Federal National Mortgage Association (“FNMA”), eight issues from Government National Mortgage Association (“GNMA”) and one private issue.

The unrealized losses on the REMIC and CMO securities issued by FHLMC, FNMA, GNMA and the private issuer were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms, and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements, and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities.  Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

Credit related impairment for mortgage-backed securities are determined for each security by estimating losses based on the following set of assumptions: (1) delinquency and foreclosure levels; (2) projected losses at various loss severity levels; and (3) credit enhancement and coverage. Based on these reviews, no OTTI charge was recorded during the year ended December 31, 2014. The Company recorded credit related OTTI charges totaling $1.4 million on four private issue CMOs during the year ended December 31, 2013 and $0.8 million on five private issue CMOs during the year ended December 31, 2012.

The private issue CMOs which incurred the above credit related OTTI charges were sold during the year ended December 31, 2013 for proceeds of $18.3 million realizing a loss on sale of $1.7 million.

GNMA:

The unrealized losses in GNMA securities at December 31, 2014 consist of losses on one security. The unrealized losses were caused by movements in interest rates. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell the security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this security to be other-than-temporarily impaired at December 31, 2014.

FNMA:

The unrealized losses in FNMA securities at December 31, 2014 consist of losses on 13 securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes will cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

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FHMLC:

The unrealized losses in FHMLC securities at December 31, 2014 consist of losses on one security. The unrealized losses were caused by movements in interest rates. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell the security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this security to be other-than-temporarily impaired at December 31, 2014.

The following table represents the activity related to the credit loss component recognized in earnings on debt securities held by the Company for which a portion of OTTI was recognized in AOCI for the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Beginning balance	$	3,738		$	6,178		$	6,922
Recognition of actual losses		-			(842	)		(1,271	)
OTTI charges due to credit loss recorded in earnings		-			1,419			776
Securities sold during the period		(3,738	)		(3,017	)		(249	)
Ending balance	$	-		$	3,738		$	6,178

The amortized cost and estimated fair value of the Company’s securities, classified as available for sale at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	23,513	$	23,516
Due after one year through five years		35,802		37,050
Due after five years through ten years		68,620		68,097
Due after ten years		136,864		139,714
Total other securities		264,799		268,377
Mortgage-backed securities		702,530		704,933
Total securities available for sale	$	967,329	$	973,310

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The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains from the sale of securities	$	5,247		$	5,222		$	154
Gross losses from the sale of securities		(2,372	)		(2,201	)		(107	)
Net gains from the sale of securities	$	2,875		$	3,021		$	47

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2013:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	100,362	$	101,711	$	2,316	$	967
Municipals		127,967		123,423		93		4,637
Mutual funds		21,565		21,565		-		-
Other		18,160		14,935		-		3,225
Total other securities		268,054		261,634		2,409		8,829
REMIC and CMO		494,984		489,670		6,516		11,830
GNMA		38,974		40,874		2,325		425
FNMA		217,615		212,322		2,233		7,526
FHLMC		13,297		13,290		226		233
Total mortgage-backed securities		764,870		756,156		11,300		20,014
Total securities available for sale	$	1,032,924	$	1,017,790	$	13,709	$	28,843

Mortgage-backed securities shown in the table above include two private issue collateralized mortgage obligations (“CMO”) that are collateralized by commercial real estate mortgages with an amortized cost and market value of $13.9 million at December 31, 2013.

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The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013.

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,033	$	967	$	39,033	$	967	$	-	$	-
Municipals		100,875		4,637		95,958		4,187		4,917		450
Other		6,337		3,225		-		-		6,337		3,225
Total other securities		146,245		8,829		134,991		5,154		11,254		3,675
REMIC and CMO		298,165		11,830		279,743		10,650		18,422		1,180
GNMA		9,213		425		9,213		425		-		-
FNMA		139,999		7,526		131,248		6,654		8,751		872
FHLMC		7,478		233		7,478		233		-		-
Total mortgage-backed securities		454,855		20,014		427,682		17,962		27,173		2,052
Total securities available for sale	$	601,100	$	28,843	$	562,673	$	23,116	$	38,427	$	5,727

Corporate:

The unrealized losses in Corporate securities at December 31, 2013 consisted of losses on four Corporate securities. The unrealized losses were caused by movements in interest rates. It was not anticipated that these securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013.

Municipal Securities:

The unrealized losses in Municipal securities at December 31, 2013, consisted of losses on 33 municipal securities. The unrealized losses were caused by movements in interest rates. It was not anticipated that these securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013.

Other Securities:

The unrealized losses in Other Securities at December 31, 2013, consisted of losses on one single issuer trust preferred security and two pooled trust preferred securities. The unrealized losses on such securities were caused by market interest volatility, a significant widening of credit spreads across markets for these securities and illiquidity and uncertainty in the financial markets. These securities were rated below investment grade. The pooled trust preferred securities did not have collateral that was subordinate to the classes the Company own. The Company’s management evaluated these securities using an impairment model, through an independent third party, that was applied to debt securities. In estimating OTTI losses, management considered: (1) the length of time and the extent to which the fair value has been less than amortized cost; (2) the current interest rate environment; (3) the financial condition and near-term prospects of the issuer, if applicable; and (4) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Additionally, management reviewed the financial condition of each individual issuer within the pooled trust preferred securities. All of the issuers of the underlying collateral of the pooled trust preferred securities we reviewed are banks.

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For each bank, our review included the following performance items of the banks:

Ratio of tangible equity to assets

Tier 1 Risk Weighted Capital

Net interest margin

Efficiency ratio for most recent two quarters

Return on average assets for most recent two quarters

Texas Ratio (ratio of non-performing assets plus assets past due over 90 days divided by tangible equity plus the reserve for loan losses)

Credit ratings (where applicable)

Capital issuances within the past year (where applicable)

Ability to complete Federal Deposit Insurance Corporation (“FDIC”) assisted acquisitions (where applicable)

Based on the review of the above factors, we concluded that:

All of the performing issuers in our pools were well capitalized banks, and did not appear likely to be closed by their regulators.

All of the performing issuers in our pools would continue as a going concern and would not default on their securities.

In order to estimate potential future defaults and deferrals, we segregated the performing underlying issuers by their Texas Ratio. We then reviewed performing issuers with Texas Ratios in excess of 50%. The Texas Ratio is a key indicator of the health of the institution and the likelihood of failure. This ratio compares the problem assets of the institution to the institution’s available capital and reserves to absorb losses that are likely to occur in these assets. There was one issuer in our pooled trust preferred securities which had a Texas Ratio in excess of 50%. We assigned a 25% default rate to this issuer. All other issuers in our pooled trust preferred securities had a Texas Ratio below 50%.  We assigned a zero percent default rate to these issuers. Our analysis also assumed that issuers currently deferring would default with no recovery, and issuers that have defaulted will have no recovery.

We had an independent third party prepare a discounted cash flow analysis for each of these pooled trust preferred securities based on the assumptions discussed above. Other significant assumptions were: (1) two issuers totaling $26.7 million would prepay in the first quarter of 2014; (2) two issuers totaling $21.5 million would prepay in the second quarter of 2015; (3) senior classes would not call the debt on their portions; and (4) use of the forward London Interbank Offered Rate (“LIBOR”) curve. The cash flows were discounted at the effective rate for each security.

The Company also owned a pooled trust preferred security that was carried under the fair value option, where the unrealized losses are included in the Consolidated Statements of Income – Net gain (loss) from fair value adjustments.

It was not anticipated at the time that the one single issuer trust preferred security and the two pooled trust preferred securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management based on the review performed at December 31, 2013, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider the one single issuer trust preferred security and the two pooled trust preferred securities to be other-than-temporarily impaired at December 31, 2013.

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7. Bank Premises and Equipment, Net

Bank premises and equipment are as follows at December 31:

	2014		2013
	(In thousands)
Land	$	3,551	$	3,551
Building and leasehold improvements		25,717		22,464
Equipment and furniture		19,197		18,219
Total		48,465		44,234
Less: Accumulated depreciation and amortization		26,597		23,878
Bank premises and equipment, net	$	21,868	$	20,356

8. Deposits

Total deposits at December 31, 2014 and 2013, and the weighted average rate on deposits at December 31, 2014, are as follows:

	2014		2013		Weighted Average Rate 2014
	(Dollars in thousands)
Interest-bearing deposits:
Certificate of deposit accounts	$	1,305,823	$	1,120,955		1.65	%
Savings accounts		261,942		265,003		0.38
Money market accounts		290,263		199,907		0.32
NOW accounts		1,359,057		1,416,774		0.45
Total interest-bearing deposits		3,217,085		3,002,639
Non-interest bearing demand deposits		255,834		197,343
Total due to depositors		3,472,919		3,199,982
Mortgagors' escrow deposits		35,679		32,798		0.09
Total deposits	$	3,508,598	$	3,232,780

The aggregate amount of time deposits with denominations of $250,000 or more (excluding brokered deposits issued in $1,000.00 amounts under a master certificate of deposit) was $109.6 million and $75.6 million at December 31, 2014 and 2013, respectively. The aggregate amount of brokered deposits was $763.9 million and $517.4 million at December 31, 2014 and 2013, respectively.

Deposits obtained from the governmental division are collateralized by either securities or letters of credit issued by FHLB-NY or are placed in an Insured Cash Sweep service (“ICS”).  The letters of credit are collateralized by mortgage loans pledged by the Bank.

At December 31, 2014, government deposits totaled $891.9 million, of which $94.0 million were ICS deposits and $797.9 million were collateralized by $379.3 million in securities and $499.1 million of letters of credit. At December 31, 2013, there were $407.4 million in securities and $517.8 million of letters of credit pledged as collateral for $867.1 million in government deposits.

111

Interest expense on deposits is summarized as follows for the years ended December 31:

	2014		2013		2012
	(In thousands)
Certificate of deposit accounts	$	22,420	$	24,414	$	32,983
Savings accounts		597		515		689
Money market accounts		667		294		399
NOW accounts		6,227		6,777		6,275
Total due to depositors		29,911		32,000		40,346
Mortgagors' escrow deposits		133		37		36
Total interest expense on deposits	$	30,044	$	32,037	$	40,382

Scheduled remaining maturities of certificate of deposit accounts are summarized as follows for the years ended December 31:

	2014		2013
	(In thousands)
Within 12 months	$	455,295	$	459,016
More than 12 months to 24 months		269,840		318,215
More than 24 months to 36 months		229,931		158,050
More than 36 months to 48 months		176,876		51,508
More than 48 months to 60 months		148,424		108,489
More than 60 months		25,457		25,677
Total certificate of deposit accounts	$	1,305,823	$	1,120,955

112

9. 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:

	2014					2013
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Repurchase agreements - fixed rate:
Due in 2014	$	-		-	%	$	9,300		1.27	%
Due in 2016		38,000		1.92			68,000		3.27
Due in 2017		38,000		4.16			38,000		4.16
Due in 2020		40,000		3.45			40,000		3.45
Total repurchase agreements - fixed rate		116,000		3.18			155,300		3.41
FHLB-NY advances - fixed rate:
Due in 2014		-		-			89,500		0.63
Due in 2015		185,551		0.80			166,732		1.21
Due in 2016		315,847		1.15			331,062		1.20
Due in 2017		305,525		2.12			174,160		2.79
Due in 2018		74,798		1.29			65,798		1.24
Due in 2019		30,000		1.83			-		-
Total FHLB-NY advances - fixed rate		911,721		1.44			827,252		1.48
Junior subordinated debentures - adjustable rate
Due in 2037		28,771		5.96			29,570		5.67
Total borrowings	$	1,056,492		1.75	%	$	1,012,122		1.90	%

During 2014, $66.9 million in long-term FHLB-NY advances at an average cost of 2.98% and $30.0 million in repurchase agreements at an average cost of 4.98% were prepaid while incurring a prepayment penalty totaling $5.2 million.

113

Borrowings which have call provisions are summarized as follows at December 31, 2014:

	Amount		Rate			Maturity Date	Call Date
	(Dollars in thousands)
FHLB-NY advances - fixed rate	$	20,000		4.43	%	10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		30,000		4.60		10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		10,000		4.13		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.32		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.15		9/18/2017	3/18/2015
Repurchase agreements - fixed rate		20,000		2.20		7/12/2016	1/12/2015
Repurchase agreements - fixed rate		18,000		4.28		10/18/2017	1/20/2015
Repurchase agreements - fixed rate		18,000		1.60		4/19/2016	1/20/2015
Repurchase agreements - fixed rate		20,000		4.05		9/19/2017	3/19/2015
Repurchase agreements - fixed rate		10,000		3.08		8/1/2020	2/1/2016
Repurchase agreements - fixed rate		10,000		3.19		2/1/2020	2/1/2016
Repurchase agreements - fixed rate		20,000		3.76		8/1/2020	2/1/2016

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:

	2014			2013			2012
	(Dollars in thousands)
Book value of collateral	$	142,925		$	199,447		$	228,620
Estimated fair value of collateral		142,925			199,447			228,620
Average balance of outstanding agreements during the year		137,824			172,944			185,300
Maximum balance of outstanding agreements at a month end during the year		155,300			185,300			185,300
Average interest rate of outstanding agreements during the year (1)		5.37	%		3.42	%		3.62	%

1. As discussed above, during the year ended December 31, 2014, the Company prepaid $30.0 million in FHLB-NY repurchase agreements at an average cost of 4.98% while incurring a prepayment penalty totaling $2.7 million.  Excluding the prepayment penalty, the average interest rate of agreements during the year ended December 31, 2014 was 3.40%.

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

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

114

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.

10. Income Taxes

Flushing Financial Corporation files consolidated Federal and combined New York State and New York City income tax returns with its subsidiaries, with the exception of the trusts, which file separate Federal income tax returns as trusts, and FPFC, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. The Company remains subject to examination for its Federal, New York State and New York City income tax returns for the years ending on or after December 31, 2011.  The Bank remains subject to examination for its New Jersey income tax returns for the years ending on or after December 31, 2011. During the three years ended December 31, 2014, the Company did not recognize any material amounts of interest or penalties on income taxes.

Income tax provisions are summarized as follows for the years ended December 31:

	2014		2013			2012
	(In thousands)
Federal:
Current	$	18,052	$	17,808		$	17,330
Deferred		2,860		(464	)		(590	)
Total federal tax provision		20,912		17,344			16,740
State and Local:
Current		6,369		5,828			5,321
Deferred		1,292		(216	)		(214	)
Total state and local tax provision		7,661		5,612			5,107
Total income tax provision	$	28,573	$	22,956		$	21,847

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The income tax provision in the Consolidated Statements of Income has been provided at effective rates of 39.2%, 37.8% and 38.9% for the years ended December 31, 2014, 2013 and 2012, respectively. The effective rates differ from the statutory federal income tax rate as follows for the years ended December 31:

	2014					2013					2012
	(Dollars in thousands)
Taxes at federal statutory rate	$	25,484		35.0	%	$	21,248		35.0	%	$	19,662		35.0	%
Increase (reduction) in taxes resulting from:
State and local income tax, net of Federal income tax benefit		4,980		6.8			3,648		6.0			3,320		5.9
Other		(1,891	)	(2.6	)		(1,940	)	(3.2	)		(1,135	)	(2.0	)
Taxes at effective rate	$	28,573		39.2	%	$	22,956		37.8	%	$	21,847		38.9	%

The components of the income taxes attributable to income from operations and changes in equity are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Income from operations	$	28,573		$	22,956		$	21,847
Equity:
Change in fair value of securities available for sale		9,200			(21,309	)		5,577
Current year actuarial gains (losses) of postretirement plans		(2,880	)		2,527			(340	)
Amortization of net actuarial losses and prior service credits		(311	)		521			436
Compensation expense for tax purposes in (excess) or less than that recognized for financial reporting purposes		(846	)		(443	)		303
Total income taxes	$	33,736		$	4,252		$	27,823

116

The components of the net deferred tax assets (liabilities) are as follows at December 31:

	2014		2013
	(In thousands)
Deferred tax asset:
Postretirement benefits	$	5,407	$	4,880
Allowance for loan losses		11,007		13,895
Stock based compensation		2,821		2,322
Depreciation		1,740		1,400
Unrealized loss on securities available for sale		-		6,612
Fair value adjustment on financial assets carried at fair value		-		2,470
Derivative financial instruments		1,025		-
Other-than-temporary impairment charges		-		1,584
Adjustment required to recognize funded status of postretirement pension plans		4,787		2,218
Other		3,023		2,336
Deferred tax asset		29,810		37,717
Deferred tax liability:
Valuation differences resulting from acquired assets and liabilities		2,764		2,805
Fair value adjustment on financial assets carried at fair value		132		-
Fair value adjustment on financial liabilities carried at fair value		14,480		14,910
Unrealized gains on securities available for sale		2,588		-
Other		2,525		1,898
Deferred tax liability		22,489		19,613
Net deferred tax asset included in other assets	$	7,321	$	18,104

The Company has recorded a deferred tax asset of $29.8 million. This represents the anticipated net federal, state and local tax benefits expected to be realized in future years upon the utilization of the underlying tax attributes comprising this balance. The Company has reported taxable income for federal, state, and local tax purposes in each of the past three years. In management’s opinion, in view of the Company’s previous, current and projected future earnings trend, the probability that some of the Company’s $22.5 million deferred tax liability can be used to offset a portion of the deferred tax asset, as well as certain tax planning strategies, it is more likely than not that the deferred tax asset will be fully realized.  Accordingly, no valuation allowance was deemed necessary for the deferred tax asset at December 31, 2014 and 2013.

The Company does not have uncertain tax positions that are deemed material. The Company’s policy is to recognize interest and penalties on income taxes in operating expenses. During the three years ended December 31, 2014, the Company did not recognize any material amounts of interest or penalties on income taxes.

11. Stock Based Compensation

For the years ended December 31, 2014, 2013 and 2012 the Company’s net income, as reported, includes $4.3 million, $3.4 million and $3.3 million, respectively, of stock-based compensation costs and $1.7 million, $1.3 million and $1.3 million, respectively, of income tax benefits related to the stock-based compensations plans.

The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, the expected volatility of the Company’s stock price, the risk-free interest rate over the options’ expected term and the annual dividend yield. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit awards. Compensation cost is recognized over the vesting period of the award using the straight line method. There were no stock options granted for the years ended December 31, 2014, 2013 and 2012. There were 266,895, 246,045 and 230,675 restricted stock units granted for the years ended December 31, 2014, 2013 and 2012, respectively.

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The 2014 Omnibus Incentive Plan (“2014 Omnibus Plan”) became effective on May 20, 2014 after adoption by the Board of Directors and approval by the stockholders. The 2014 Omnibus Plan authorizes the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) to grant a variety of equity compensation awards as well as long-term and annual cash incentive awards, all of which can, but need not, be structured so as to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).  The 2014 Omnibus Plan authorizes the issuance of 1,100,000 shares. To the extent that an award under the 2014 Omnibus Plan is cancelled, expired, forfeited, settled in cash, settled by issuance of fewer shares than the number underlying the award, or otherwise terminated without delivery of shares to a participant in payment of the exercise price or taxes relating to an award, the shares retained by or returned to the Company will be available for future issuance under the 2014 Omnibus Plan. No further awards may be granted under the Company’s 2005 Omnibus Incentive Plan, 1996 Stock Option Incentive Plan, and 1996 Restricted Stock Incentive Plan. At December 31, 2014, there were 1,097,200 shares available for delivery in connection with awards under the 2014 Omnibus Plan. To satisfy stock option exercises or fund restricted stock and restricted stock unit awards, shares are issued from treasury stock, if available; otherwise new shares are issued. The exercise price per share of a stock option grant may not be less than the fair market value of the common stock of the Company, as defined in the Omnibus Plan, on the date of grant and may not be re-priced without the approval of the Company’s stockholders. Options, stock appreciation rights, restricted stock, restricted stock units and other stock based awards granted under the Omnibus Plan are generally subject to a minimum vesting period of three years with stock options having a 10-year maximum contractual term. Other awards do not have a contractual term of expiration. The Compensation Committee is authorized to grant awards that vest upon a participant’s retirement. These amounts are included in stock-based compensation expense at the time of the participant’s retirement eligibility.

The following table summarizes the Company’s restricted stock unit (“RSU”) awards under the 2014 Omnibus Plan and the Prior Plans in the aggregate for the year ended December 31, 2014:

	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2013		346,584		$	14.08
Granted		266,895			20.17
Vested		(220,863	)		16.80
Forfeited		(19,462	)		15.59
Non-vested at December 31, 2014		373,154		$	16.75
Vested but unissued at December 31, 2014		233,836		$	16.93

As of December 31, 2014, there was $4.3 million of total unrecognized compensation cost related to RSU awards granted under the 2014 Omnibus Plan and the Prior Plans. That cost is expected to be recognized over a weighted-average period of 3.1 years.  The total fair value of awards vested for the years ended December 31, 2014, 2013 and 2012 were $4.4 million, $2.9 million and $3.3 million, respectively. The vested but unissued RSU awards consist of awards made to employees and directors who are eligible for retirement. According to the terms of these awards, which provide for vesting upon retirement, these employees and directors have no risk of forfeiture.  These shares will be issued at the original contractual vesting and settlement dates. As of December 31, 2014, there is no remaining unrecognized compensation cost related to stock options granted.

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The following table summarizes certain information regarding the stock option awards under the Omnibus Plan and the Prior Plans in the aggregate for the year ended December 31, 2014:

	Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual (years)			Aggregate Intrinsic Value $(000) *
Outstanding at December 31, 2013		306,630		$	16.02
Granted		-			-
Exercised		(150,115	)		16.83
Forfeited		(1,600	)		19.37
Outstanding at December 31, 2014		154,915		$	15.19		3.2	$	787
Exercisable shares at December 31, 2014		154,915		$	15.19		3.2	$	787

* The intrinsic value of a stock option is the difference between the market value of the underlying stock and the exercise price of the option.

Cash proceeds, fair value received, tax benefits, and intrinsic value related to stock options exercised, and the weighted average grant date fair value for options granted, during the years ended December 31, 2014, 2013 and 2012 are provided in the following table:

(In thousands, except grant date fair value)	2014		2013		2012
Proceeds from stock options exercised	$	565	$	533	$	885
Fair value of shares received upon exercise of stock options		1,962		6,814		905
Tax benefit related to stock options exercised		88		151		56
Intrinsic value of stock options exercised		488		1,228		256
Weighted average fair value on grant date		n/a		n/a		n/a

Phantom Stock Plan: The Company maintains a non-qualified phantom stock plan as a supplement to its profit sharing plan for officers who have achieved the level of Senior Vice President and above and completed one year of service.  However, officers who had achieved at least the level of Vice President and completed one year of service prior to January 1, 2009 remain eligible to participate in the phantom stock plan.  Awards are made under this plan on certain compensation not eligible for awards made under the profit sharing plan, due to the terms of the profit sharing plan and the Internal Revenue Code. Employees receive awards under this plan proportionate to the amount they would have received under the profit sharing plan, but for limits imposed by the profit sharing plan and the Internal Revenue Code. The awards are made as cash awards, and then converted to common stock equivalents (phantom shares) at the then current market value of the Company’s common stock. Dividends are credited to each employee’s account in the form of additional phantom shares each time the Company pays a dividend on its common stock. In the event of a change of control (as defined in this plan), an employee’s interest is converted to a fixed dollar amount and deemed to be invested in the same manner as his interest in the Bank’s non-qualified deferred compensation plan. Employees vest under this plan 20% per year for 5 years. Employees also become 100% vested upon a change of control. Employees receive their vested interest in this plan in the form of a cash lump sum payment or installments, as elected by the employee, after termination of employment. The Company adjusts its liability under this plan to the fair value of the shares at the end of each period.

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The following table summarizes the Company’s Phantom Stock Plan at or for the year ended December 31, 2014:

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2013		59,323		$	20.70
Granted		9,631			19.85
Forfeited		(56	)		19.73
Distributions		(1,785	)		19.60
Outstanding at December 31, 2014		67,113		$	20.27
Vested at December 31, 2014		66,996		$	20.27

The Company recorded stock-based compensation expense for the phantom stock plan of $17,000, $343,000 and $155,000 for the years ended December 31, 2014, 2013 and 2012, respectively. The total fair value of distributions from the phantom stock plan were $35,000, $9,000 and $12,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

12. Pension and Other Postretirement Benefit Plans

The amounts recognized in accumulated other comprehensive income, on a pre-tax basis, consist of the following, as of December 31:

	Net Actuarial loss (gain)									Prior Service cost (credit)									Total
	2014			2013			2012			2014			2013			2012			2014			2013			2012
	(In thousands)
Employee Retirement Plan	$	9,938		$	5,899		$	11,843		$	-		$	-		$	-		$	9,938		$	5,899		$	11,843
Other Postretirement Benefit Plans		2,130			205			1,199			(623	)		(708	)		(794	)		1,507			(503	)		405
Outside Directors Plan		(488	)		(496	)		(409	)		131			171			210			(357	)		(325	)		(199	)
Total	$	11,580		$	5,608		$	12,633		$	(492	)	$	(537	)	$	(584	)	$	11,088		$	5,071		$	12,049

Amounts in accumulated other comprehensive income to be recognized as components of net periodic expense for these plans in 2014 are as follows:

	Net Actuarial loss (gain)			Prior Service cost (credit)			Total
	(In thousands)
Employee Retirement Plan	$	1,162		$	-		$	1,162
Other Postretirement Benefit Plans		119			(85	)		34
Outside Directors Plan		(56	)		40			(16	)
	$	1,225		$	(45	)	$	1,180

Employee Retirement Plan:

The Bank has a funded noncontributory defined benefit retirement plan covering substantially all of its salaried employees who were hired before September 1, 2005 (the “Retirement Plan”). The benefits are based on years of service and the employee’s compensation during the three consecutive years out of the final ten years of service, which was completed prior to September 30, 2006, the date the Retirement Plan was frozen, that produces the highest average. The Bank’s funding policy is to contribute annually the amount recommended by the Retirement Plan’s actuary. The Bank’s Retirement Plan invests in diversified equity and fixed-income funds, which are independently managed by a third party. The Company did not make a contribution to the Retirement Plan during the year ended December 31, 2014. The Company contributed $0.8 million and $0.7 million to the Retirement Plan during the years ended December 31, 2013 and 2012, respectively. The Company used a December 31 measurement date for the Retirement Plan.

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The following table sets forth, for the Retirement Plan, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	19,740		$	22,531
Service cost		-			-
Interest cost		891			827
Actuarial (gains) loss		4,446			(2,485	)
Benefits paid		(980	)		(1,133	)
Projected benefit obligation at end of year		24,097			19,740
Change in plan assets:
Market value of assets at beginning of year		20,496			17,300
Actual return on plan assets		993			3,498
Employer contributions		-			831
Benefits paid		(980	)		(1,133	)
Market value of plan assets at end of year		20,509			20,496
Accrued pension (liability) prepaid included in other (liabilities) assets	$	(3,588	)	$	756

Assumptions used to determine the Retirement Plan’s benefit obligations are as follows at December 31:

	2014			2013
Weighted average discount rate		3.76	%		4.60	%
Rate of increase in future compensation levels		n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%

The accumulated benefit obligation for the Retirement Plan was $24.1 million and $19.7 million at December 31, 2014 and 2013, respectively.

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The components of the net pension expense for the Retirement Plan are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	-		$	-		$	-
Interest cost		891			827			879
Amortization of unrecognized loss		759			1,222			1,032
Expected return on plan assets		(1,344	)		(1,261	)		(1,257	)
Net pension expense (benefit)		306			788			654
Current year actuarial (gain) loss		4,798			(4,722	)		652
Amortization of actuarial loss		(759	)		(1,222	)		(1,032	)
Total recognized in other comprehensive income		4,039			(5,944	)		(380	)
Total recognized in net pension cost (benefit) and other comprehensive income	$	4,345		$	(5,156	)	$	274

Assumptions used to develop periodic pension cost for the Retirement Plan for the years ended December 31 were:

	2014			2013			2012
Weighted average discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%		7.50	%

The following benefit payments, which reflect expected future service, are expected to be paid by the Retirement Plan:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	1,094
2016		1,145
2017		1,161
2018		1,161
2019		1,181
2020 – 2024		6,490

The long-term rate-of-return-on-assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan's target allocation of asset classes. Equities and fixed income securities were assumed to earn real rates of return in the ranges of 8-10% and 3-5%, respectively. When these overall return expectations are applied to the plans target allocation, the result is an expected rate return of approximately 8%.

The Retirement Plan’s weighted average asset allocations at December 31, by asset category, were:

	2014			2013
Equity securities		68	%		69	%
Debt securities		32	%		31	%

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Plan assets are invested in a diversified mix of stock and bond investment funds on the pooled account, group annuity platform of Prudential Retirement Services. Each fund has its own investment objectives, investment strategies and risks as detailed in its prospectus.

The long-term investment objectives are to maintain plan assets at a level that will sufficiently cover long-term obligations and to generate a return on plan assets that will meet or exceed the rate at which long-term obligations will grow. A combination of equity and fixed income portfolios are used to help achieve these objectives based on a long-term, liability based strategic mix of 60% equities and 40% fixed income. Adjustments to this mix are made periodically based on current capital market conditions and plan funding levels. Performance of the investment fund managers is monitored on an ongoing basis using modern portfolio risk analysis and appropriate index benchmarks.

The Bank does not expect to make a contribution to the Retirement Plan in 2015.

Pooled Separate Accounts – (Level 2) Valued as determined by the investment manager and is based on the value of the underlying assets held at December 31, 2014 and 2013.

The following table sets forth the employee pension plan’s assets that are carried at fair value, and the method that was used to determine their fair value, at December 31, 2014:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,832	$	-	$	4,832	$	-
U.S. large-cap value (b)		4,939		-		4,939		-
U.S. small-cap blend (c)		2,163		-		2,163		-
International blend (d)		1,966		-		1,966		-
Bond fund (e)		6,274		-		6,274		-
Prudential short term (f)		335		-		335		-
Total	$	20,509	$	-	$	20,509	$	-

a. Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index.  The portfolio will typically hold between 55 and 70 stocks.

b. Comprised of large-cap stocks seeking to outperform the Russell 1000® Value benchmark over the rolling three and five year periods, or a full market cycle, whichever is longer.

c. Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the time of purchase.  The portfolio will typically hold between 40 and 100 stocks.

d. Comprised of non-U.S. domiciled stocks.  The portfolio will typically hold between 80 and 90 stocks.

e. Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.

f. Comprised of money market instruments with an emphasis on safety and liquidity.

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The following table sets forth the employee pension plan’s assets that are carried at fair value, and the method that was used to determine their fair value, at December 31, 2013:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,609	$	-	$	4,609	$	-
U.S. large-cap value (b)		4,625		-		4,625		-
U.S. small-cap blend (c)		2,536		-		2,536		-
International blend (d)		2,336		-		2,336		-
Bond fund (e)		5,993		-		5,993		-
Prudential short term (f)		397		-		397		-
Total	$	20,496	$	-	$	20,496	$	-

a. Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index.  The portfolio will typically hold between 55 and 70 stocks.

b. Comprised of large-cap stocks seeking to outperform the Russell 1000® Value benchmark over the rolling three and five year periods, or a full market cycle, whichever is longer.

c. Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the time of purchase.  The portfolio will typically hold between 40 and 100 stocks.

d. Comprised of non-U.S. domiciled stocks.  The portfolio will typically hold between 80 and 90 stocks.

e. Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.

f. Comprised of money market instruments with an emphasis on safety and liquidity.

Other Postretirement Benefit Plans:

The Company sponsors two unfunded postretirement benefit plans (the “Postretirement Plans”) that cover all retirees who were full-time permanent employees with at least five years of service, and their spouses. Effective January 1, 2012, the Postretirement Plans are no longer available for new hires. One plan provides medical benefits through a 50% cost sharing arrangement. Effective January 1, 2000, the spouses of future retirees were required to pay 100% of the premiums for their coverage. The other plan provides life insurance benefits and is noncontributory. Effective January 1, 2010, life insurance benefits are not available for future retirees. Under these programs, eligible retirees receive lifetime medical and life insurance coverage for themselves and lifetime medical coverage for their spouses. The Company reserves the right to amend or terminate these plans at its discretion.

Comprehensive medical plan benefits equal the lesser of the normal plan benefit or the total amount not paid by Medicare. Life insurance benefits for retirees are based on annual compensation and age at retirement. As of December 31, 2014, the Company has not funded these plans. The Company used a December 31 measurement date for these plans.

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The following table sets forth, for the Postretirement Plans, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	5,586		$	5,927
Service cost		358			449
Interest cost		253			219
Actuarial loss (gain)		1,925			(943	)
Benefits paid		(49	)		(66	)
Projected benefit obligation at end of year		8,073			5,586
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		49			66
Benefits paid		(49	)		(66	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(8,073	)	$	(5,586	)

The accumulated benefit obligation for the Postretirement Plans was $8.1 million and $5.6 million at December 31, 2014 and 2013, respectively.

Assumptions used in determining the actuarial present value of the accumulated postretirement benefit obligations at December 31 are as follows:

	2014			2013
Rate of return on plan assets		n/a			n/a
Discount rate		3.76	%		4.60	%
Rate of increase in health care costs
Initial		8.00	%		9.00	%
Ultimate (year 2018)		5.00	%		5.00	%
Annual rate of salary increase for life insurance		n/a			n/a

The resulting net periodic postretirement expense consisted of the following components for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	358		$	449		$	400
Interest cost		253			219			217
Amortization of unrecognized loss		-			50			40
Amortization of past service credit		(85	)		(85	)		(85	)
Net postretirement benefit expense		526			633			572
Current year actuarial (gain) loss		1,925			(943	)		211
Amortization of actuarial gain		-			(50	)		(40	)
Amortization of prior service credit		85			85			85
Total recognized in other comprehensive income		2,010			(908	)		256
Total recognized in net postretirement expense and other comprehensive income	$	2,536		$	(275	)	$	828

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Assumptions used to develop periodic postretirement expense for the Postretirement Plans for the years ended December 31 were:

	2014			2013			2012
Rate of return on plan assets		n/a			n/a			n/a
Discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in health care costs
Initial		9.00	%		10.00	%		10.50	%
Ultimate (year 2018)		5.00	%		5.00	%		5.50	%
Annual rate of salary increase for life insurance		n/a			n/a			n/a

The health care cost trend rate assumptions have a significant effect on the amounts reported. A one percentage point change in assumed health care trend rates would have the following effects:

	Increase		Decrease
	(In thousands)
Effect on postretirement benefit obligation	$	1,682	$	(1,271	)
Effect on total service and interest cost		187		(137	)

The Company expects to pay benefits of $181,000 under its Postretirement Plans in 2015.

The following benefit payments under the Postretirement Plan, which reflect expected future service, are expected to be paid:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	181
2016		208
2017		232
2018		254
2019		272
2020 - 2024		1,509

Defined Contribution Plans:

The Company maintains a tax qualified 401(k) plan which covers substantially all salaried employees who have completed one year of service. Currently, annual matching contributions under the Bank’s 401(k) plan equal 50% of the employee’s contributions, up to a maximum of 3% of the employee’s compensation. In addition, the 401(k) plan includes the Defined Contribution Retirement Plan (“DCRP”), under which the Bank contributes an amount equal to 4% of an employee’s eligible compensation as defined in the plan, and the Profit Sharing Plan (“PSP”), under which at the discretion of the Company’s Board of Directors a contribution is made.  Contributions for the DCRP and PSP are made in the form of Company common stock at or after the end of each year. Annual contributions under these plans are subject to the limits imposed under the Internal Revenue Code. Contributions by the Company into the 401(k) plan vest 20% per year over the employee's first five years of service. Contributions to these plans also 100% vest upon a change of control (as defined in the applicable plan). Compensation expense recorded by the Company for these plans amounted to $3.1 million, $2.9 million and $2.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

The Bank provides a non-qualified deferred compensation plan as an incentive for officers who have achieved the level of at least Senior Vice President and have at least one year of service. However, officers who had achieved at least the level of Vice President and completed one year of service prior to January 1, 2009 remain eligible to participate in the plan.  In addition to the amounts deferred by the officers, the Bank matches 50% of their contributions, generally up to a maximum of 5% of the officers’ salary. Matching contributions under this plan vest 20% per year for five years. They also become 100% vested upon a change of control (as defined in the plan). Compensation expense recorded by the Company for this plan amounted to $0.4 million for each of the years ended December 31, 2014, 2013 and 2012.

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Employee Benefit Trust:

An Employee Benefit Trust (“EBT”) has been established to assist the Company in funding its benefit plan obligations. In connection with the Savings Bank’s conversion to a federal stock savings bank in 1995, the EBT borrowed $7.9 million from the Company and used $7,000 of cash received from the Savings Bank to purchase 2,328,750 shares of the common stock of the Company. The loan was repaid from the Company’s discretionary contributions to the EBT and dividend payments received on common stock held by the EBT. During the year ended December 31, 2010, the loan was fully repaid.  Dividend payments received subsequent to the loan being repaid are used to purchase additional shares of common stock. Shares purchased with the loan proceeds are held in a suspense account for contribution to specified benefit plans. Shares released from the suspense account are used solely for funding matching contributions under the Bank’s 401(k) plan, contributions to the 401(k) plan for the DCRP, and contributions to the PSP. Since annual contributions are discretionary with the Company or dependent upon employee contributions, compensation payable under the EBT cannot be estimated. For the years ended December 31, 2014, 2013 and 2012, the Company funded $2.7 million, $2.3 million and $2.1 million, respectively, of employer contributions to the 401(k), DCRP and profit sharing plans from the EBT.

Upon a change of control (as defined in the EBT), the EBT will terminate and any trust assets remaining after certain benefit plan contributions will be distributed to all full-time employees of the Company with at least one year of service, in proportion to their compensation over the four most recently completed calendar years plus the portion of the current year prior to the termination of the EBT.

As shares are released from the suspense account, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations. The EBT shares are as follows at December 31:

	2014			2013
Shares owned by Employee Benefit Trust, beginning balance		913,792			1,028,565
Shares purchased		23,717			29,168
Shares released and allocated		(136,559	)		(143,941	)
Shares owned by Employee Benefit Trust, ending balance		800,950			913,792
Market value of unallocated shares.	$	16,235,257		$	18,915,494

Outside Director Retirement Plan:

The Bank has an unfunded noncontributory defined benefit Outside Director Retirement Plan (the “Directors’ Plan”), which provides benefits to each non-employee director who became a non-employee director before January 1, 2004, who has at least five years of service as a non-employee director and whose years of service as a non-employee director plus age equals or exceeds 55. Benefits are also payable to a non-employee director who became a non-employee director before January 1, 2004 and whose status as a non-employee director terminates because of death or disability or who is a non-employee director upon a change of control (as defined in the Directors’ Plan). Any person who became a non-employee director after January 1, 2004 is not eligible to participate in the Directors’ Plan. Upon termination an eligible director will be paid an annual retirement benefit equal to $48,000. Such benefit will be paid in equal monthly installments for the lesser of the number of months such director served as a non-employee director or 120 months. In the event of a termination of Board service due to a change of control, a non-employee director who has completed at least two years of service as a non-employee director will receive a cash lump sum payment equal to 120 months of benefit, and a non-employee director with less than two years of service will receive a cash lump sum payment equal to a number of months of benefit equal to the number of months of his service as a non-employee director. In the event of the director’s death, the surviving spouse will receive the equivalent benefit. No benefits will be payable to a director who is removed for cause. The Holding Company has guaranteed the payment of benefits under the Directors’ Plan. Upon adopting the Directors’ Plan, the Bank elected to immediately recognize the effect of adopting the Directors’ Plan. Subsequent plan amendments are amortized as a past service liability. The Bank used a December 31 measurement date for the Directors’ Plan.

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The following table sets forth, for the Directors’ Plan, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	2,666		$	2,706
Service cost		54			82
Interest cost		116			98
Actuarial gain		(53	)		(122	)
Benefits paid		(120	)		(98	)
Projected benefit obligation at end of year		2,663			2,666
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		120			98
Benefits paid		(120	)		(98	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(2,663	)	$	(2,666	)

The accumulated benefit obligation for the Directors’ Plan was $2.7 million at December 31, 2014 and 2013.

The components of the net pension expense for the Directors’ Plan are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	54		$	82		$	80
Interest cost		116			98			110
Amortization of unrecognized gain		(60	)		(36	)		(29	)
Amortization of past service liability		40			40			40
Net pension expense		150			184			201
Current actuarial gain		(52	)		(122	)		(44	)
Amortization of actuarial gain		60			36			29
Amortization of prior service cost		(40	)		(40	)		(40	)
Total recognized in other comprehensive income		(32	)		(126	)		(55	)
Total recognized in net pension expense and other comprehensive income	$	118		$	58		$	146

Assumptions used to determine benefit obligations and periodic pension expense for the Directors’ Plan for the years ended December 31 were:

	2014			2013			2012
Weighted average discount rate for the benefit obligation		3.76	%		4.60	%		3.75	%
Weighted average discount rate for periodic pension benefit expense		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a

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The following benefit payments under the Directors’ Plan, which reflect expected future service, are expected to be paid:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	288
2016		288
2017		288
2018		272
2019		288
2020 – 2024		1,336

The Company expects to make payments of $288,000 under its Directors’ Plan in 2015.

13. Stockholders’ Equity

Dividend Restrictions on the Bank:

In connection with the Savings Bank’s conversion from mutual to stock form in November 1995, a special liquidation account was established at the time of conversion, in accordance with the requirements of its primary regulator, which was equal to its capital as of June 30, 1995. The liquidation account is reduced as and to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases in deposits do not restore an eligible account holder’s interest in the liquidation account. Subsequent to the Merger, the Bank assumed the liquidation account. In the event of a complete liquidation of the Bank, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the current adjusted qualifying balances for accounts then held. As of December 31, 2014, the Bank’s liquidation account was $1.0 million, and was presented within retained earnings.

In addition to the restriction described above, New York State and Federal banking regulations place certain restrictions on dividends paid by the Bank to the Holding Company. The total amount of dividends which may be paid at any date is generally limited to the net income of the Bank for the current year and prior two years, less any dividends previously paid from those earnings. As of December 31, 2014, the Bank had $60.4 million in retained earnings available to distribute to the Holding Company in the form of cash dividends.

In addition, dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements.

As a bank holding company, the Holding Company is subject to similar dividend restrictions.

Stockholder Rights Plan:

The Holding Company has adopted a Shareholder Rights Plan under which each stockholder has one right to purchase from the Holding Company, for each share of common stock owned, one one-hundredth of a share of Series A junior participating preferred stock at a price of $65. The rights will become exercisable only if a person or group acquires 15% or more of the Holding Company’s common stock or commences a tender or exchange offer which, if consummated, would result in that person or group owning at least 15% of the Common Stock (the “acquiring person or group”). In such case, all stockholders other than the acquiring person or group will be entitled to purchase, by paying the $65 exercise price, Common Stock (or a common stock equivalent) with a value of twice the exercise price.  In addition, at any time after such event, and prior to the acquisition by any person or group of 50% or more of the Common Stock, the Board of Directors may, at its option, require each outstanding right (other than rights held by the acquiring person or group) to be exchanged for one share of Common Stock (or one common stock equivalent). If a person or group becomes an acquiring person and the Holding Company is acquired in a merger or other business combination or sells more than 50% of its assets or earning power, each right will entitle all other holders to purchase, by payment of $65 exercise price, common stock of the acquiring company with a value of twice the exercise price. The rights plan expires on September 30, 2016.

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Treasury Stock Transactions:

The Holding Company repurchased 914,671 common shares at an average cost of $19.29 during the year ended December 31, 2014. The Holding Company repurchased 836,092 common shares at an average cost of $15.73 during the year ended December 31, 2013.  At December 31, 2014, 635,199 shares remain to be repurchased under the current stock repurchase program. Stock will be purchased under the current stock repurchase program from time to time, in the open market or through private transactions, subject to market conditions and at the discretion of the management of the Company. There is no expiration or maximum dollar amount under this authorization.

Accumulated Other Comprehensive Income (Loss):

The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2014 and 2013:

December 31, 2014	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)
Other comprehensive income before reclassifications, net of tax		13,548			(3,790	)		9,758
Amounts reclassified from accumulated other comprehensive income, net of tax		(1,634	)		344			(1,290	)
Net current period other comprehensive income, net of tax		11,914			(3,446	)		8,468
Ending balance, net of tax	$	3,392		$	(6,299	)	$	(2,907	)

December 31, 2013	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	18,921		$	(6,784	)	$	12,137
Other comprehensive income before reclassifications, net of tax		(26,541	)		3,261			(23,280	)
Amounts reclassified from accumulated other comprehensive income, net of tax		(902	)		670			(232	)
Net current period other comprehensive income, net of tax		(27,443	)		3,931			(23,512	)
Ending balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)

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The following table sets forth significant amounts reclassified out of accumulated other comprehensive income by component for the year ended December 31, 2014:

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	2,875		Net gain on sale of securities
		(1,241	)	Tax expense
	$	1,634		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(700	) (1)	Other expense
Prior service credits		45	(1)	Other expense
		(655	)	Total before tax
		311		Tax benefit
	$	(344	)	Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).

The following table sets forth significant amounts reclassified out of accumulated other comprehensive income by component for the year ended December 31, 2013:

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	3,021		Net gain on sale of securities
		(1,321	)	Tax expense
	$	1,700		Net of tax
OTTI charges	$	(1,419	)	OTTI charge
		621		Tax benefit
	$	(798	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(1,237	)(1)	Other expense
Prior service credits		46	(1)	Other expense
		(1,191	)	Total before tax
		521		Tax benefit
	$	(670	)	Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).

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14. Regulatory Capital

Under current capital regulations, the Bank is required to comply with three separate capital adequacy standards. As of December 31, 2014, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	472,251		9.63	%	$	447,305		9.48	%
Requirement to be well capitalized		245,254		5.00			235,992		5.00
Excess		226,997		4.63			211,313		4.48
Tier I risk-based capital:
Capital level	$	472,251		13.87	%	$	447,305		14.59	%
Requirement to be well capitalized		204,354		6.00			183,944		6.00
Excess		267,897		7.87			263,361		8.59
Total risk-based capital:
Capital level	$	497,347		14.60	%	$	479,081		15.63	%
Requirement to be well capitalized		340,589		10.00			306,573		10.00
Excess		156,758		4.60			172,508		5.63

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As a result of its conversion to a bank holding company on February 28, 2013, the Holding Company became subject to the same regulatory capital requirements as the Bank. As of December 31, 2014, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	471,233		9.62	%	$	456,772		9.70	%
Requirement to be well capitalized		244,960		5.00			235,547		5.00
Excess		226,273		4.62			221,225		4.70
Tier I risk-based capital:
Capital level	$	471,233		13.87	%	$	456,772		14.93	%
Requirement to be well capitalized		203,878		6.00			183,579		6.00
Excess		267,355		7.87			273,193		8.93
Total risk-based capital:
Capital level	$	496,329		14.61	%	$	488,548		15.97	%
Requirement to be well capitalized		339,797		10.00			305,966		10.00
Excess		156,532		4.61			182,582		5.97

15. Commitments and Contingencies

Commitments:

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and lines of credit.  The instruments involve, to varying degrees, elements of credit and market risks in excess of the amount recognized in the consolidated financial statements.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments and lines of credit is represented by the contractual amounts of these instruments.

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally business lines of credit and home equity lines of credit) amounted to $68.3 million and $190.4 million, respectively, at December 31, 2014. Included in these commitments were $11.6 million of fixed-rate commitments at a weighted average rate of 4.20% and $247.1 million of adjustable-rate commitments with a weighted average rate, as of December 31, 2014, of 3.65%. Since generally all of the loan commitments are expected to be drawn upon, the total loan commitments approximate future cash requirements, whereas the amounts of lines of credit may not be indicative of the Company’s future cash requirements. The loan commitments generally expire in 90 days, while construction loan lines of credit mature within eighteen months and home equity lines of credit mature within ten years. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments to extend credit are legally binding agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates and require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Collateral held consists primarily of real estate.

The Bank collateralized a portion of its deposits with letters of credit issued by FHLB-NY.  At December 31, 2014, there were $499.1 million of letters of credit outstanding.   The letters of credit are collateralized by mortgage loans pledged by the Bank.

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The Trusts issued capital securities with a par value of $61.9 million in June and July 2007. The Holding Company has guaranteed the payment of the Trusts’ obligations under these capital securities.

During the year ended December 31, 2014, the Company announced it had entered into an agreement to lease approximately 90,000 square feet of space in Uniondale, New York to serve as the Company’s new corporate headquarters. Additionally, the Company intends to use a portion of the space to house a bank branch.  The total minimum rent due over the 12 year lease term is approximately $24.4 million.

The Company’s minimum annual rental payments for Bank premises due under non-cancelable leases are as follows:

	Minimum Rental
	(In thousands)
Years ended December 31:
2015	$	4,440
2016		4,513
2017		4,383
2018		4,448
2019		5,332
Thereafter		30,687
Total minimum payments required	$	53,803

The leases have escalation clauses for operating expenses and real estate taxes. Rent expense under these leases for the years ended December 31, 2014, 2013 and 2012 was approximately $3.8 million, $3.7 million and $3.7 million, respectively.

Contingencies:

The Company is a defendant in various lawsuits. Management of the Company, after consultation with outside legal counsel, believes that the resolution of these various matters will not result in any material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

16. Concentration of Credit Risk

The Company’s lending is concentrated in the New York City metropolitan area. The Company evaluates each customer’s creditworthiness on a case-by-case basis under the Company’s established underwriting policies. The collateral obtained by the Company generally consists of first liens on one-to-four family residential, multi-family residential, and commercial real estate. At December 31, 2014, the largest amount the Bank could lend to one borrower was approximately $70.8 million, and at that date, the Bank’s largest aggregate amount of loans to one borrower was $66.7 million, all of which were performing according to their terms.

17. Related Party Transactions

At December 31, 2014, one loan for $27,000 was outstanding to an executive officer of the Company. This loan was made in the ordinary course of business and was fully approved in accordance with all of the Company’s credit underwriting standards and was made at market rates of interest and other normal terms but with reduced origination fees. No such loans were made during 2014. The Company believes that such loans do not involve more than the normal risk of collectability or present other unfavorable features.

18. Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with ASC Topic 825 “Financial Instruments” and values those financial assets and financial liabilities in accordance with ASC Topic 820 “Fair Value Measurements and Disclosures.”  ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  ASC topic 825 permits entities to choose to measure many financial instruments and certain other items at fair value. At December 31, 2014, the Company carried financial assets and financial liabilities under the fair value option with fair values of $32.6 million and $28.8 million, respectively. The Company elected to measure at fair value, securities with a cost of $5.0 million that were purchased during the year ended December 31, 2014. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the year ended December 31, 2013. During the years ended December 31, 2014 and 2013, the Company sold financial assets carried under the fair value option totaling $6.2 million and $8.1 million, respectively.

134

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option at December 31, 2014 and 2013, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, for the years ended December 31, 2014, 2013 and 2012:

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at December 31,		at December 31,		For the year ended		For the year ended			For the year ended
Description	2014		2013		December 31, 2014		December 31, 2013			December 31, 2012
(Dollars in thousands)
Mortgage-backed securities	$	4,678	$	7,119	$	75	$	(725	)	$	(539	)
Other securities		27,915		30,163		598		241			796
Borrowed funds		28,771		29,570		802		(5,651	)		2,062
Net gain (loss) from fair value adjustments (1)					$	1,475	$	(6,135	)	$	2,319

(1) The net gain (loss) from fair value adjustments presented in the above table does not include net gains and (losses) of ($4.0) million, $3.6 million and ($2.3) million from the change in fair value of derivative instruments during the years ended December 31, 2014, 2013 and 2012, respectively.

Included in the fair value of the financial assets and financial liabilities selected for the fair value option is the accrued interest receivable or payable for the related instrument. The Company reports as interest income or interest expense in the Consolidated Statement of Income, the interest receivable or payable on the financial instruments selected for the fair value option at their respective contractual rates.

The borrowed funds have a contractual principal amount of $61.9 million at December 31, 2014 and 2013. The fair value of borrowed funds includes accrued interest payable of $0.1 million at December 31, 2014 and 2013.

The Company generally holds its earning assets, other than securities available for sale, to maturity and settles its liabilities at maturity. However, fair value estimates are made at a specific point in time and are based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Accordingly, as assumptions change, such as interest rates and prepayments, fair value estimates change and these amounts may not necessarily be realized in an immediate sale.

Disclosure of fair value does not require fair value information for items that do not meet the definition of a financial instrument or certain other financial instruments specifically excluded from its requirements. These items include core deposit intangibles and other customer relationships, premises and equipment, leases, income taxes and equity.

Further, fair value disclosure does not attempt to value future income or business. These items may be material and accordingly, the fair value information presented does not purport to represent, nor should it be construed to represent, the underlying “market” or franchise value of the Company.

Financial assets and financial liabilities reported at fair value are required to be measured based on either: (1) quoted prices in active markets for identical financial instruments (Level 1); (2) significant other observable inputs (Level 2); or (3) significant unobservable inputs (Level 3).

A description of the methods and significant assumptions utilized in estimating the fair value of the Company’s assets and liabilities that are carried at fair value on a recurring basis are as follows:

Level 1 – where quoted market prices are available in an active market. The Company did not value any of its assets or liabilities that are carried at fair value on a recurring basis as Level 1 at December 31, 2014 and 2013.

Level 2 – when quoted market prices are not available, fair value is estimated using quoted market prices for similar financial instruments and adjusted for differences between the quoted instrument and the instrument being valued.  Fair value can also be estimated by using pricing models, or discounted cash flows.  Pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices and credit spreads.  In addition to observable market information, models also incorporate maturity and cash flow assumptions. At December 31, 2014 and 2013, Level 2 included mortgage related securities, corporate debt and interest rate caps/swaps.

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Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At December 31, 2014 and 2013, Level 3 included municipal securities and trust preferred securities owned by and junior subordinated debentures issued by the Company.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies, assumptions and models to determine fair value of certain financial instruments could produce different estimates of fair value at the reporting date.

The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, and the method that was used to determine their fair value, at December 31:

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Securities available for sale
Mortgage-backed Securities	$	-	$	-	$	704,933	$	756,156	$	-	$	-	$	704,933	$	756,156
Other securities		-		-		245,768		237,476		22,609		24,158		268,377		261,634
Interest rate swaps		-		-		84		2,081		-		-		84		2,081
Total assets	$	-	$	-	$	950,785	$	995,713	$	22,609	$	24,158	$	973,394	$	1,019,871
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	28,771	$	29,570	$	28,771	$	29,570
Interest rate swaps		-		-		2,649		-		-		-		2,649		-
Total liabilities	$	-	$	-	$	2,649	$	-	$	28,771	$	29,570	$	31,420	$	29,570

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The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the period indicated:

	Municipals			Trust preferred securities			Junior subordinated debentures
	(In thousands)
Beginning balance	$	9,223		$	14,935		$	29,570
Purchases		7,595			-			-
Principal repayments		(214	)		-			-
Maturities		(1,085	)		-			-
Sales		-			(11,133	)		-
Net gain from fair value adjustment of financial assets		-			71			-
Net gain from fair value adjustment of financial liabilities		-			-			(801	)
Increase in accrued interest payable		-			-			2
Change in unrealized gains included in other comprehensive income		-			3,217			-
Ending balance	$	15,519		$	7,090		$	28,771
Changes in unrealized held at period end	$	-		$	3,217		$	-

The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the period indicated:

	For the year ended  December 31, 2013
	REMIC and CMO			Municipals			Trust preferred securities		Junior subordinated debentures
	(In thousands)
Beginning balance	$	23,475		$	9,429		$	6,650	$	23,922
Transfer into Level 3		-			-			6,126		-
Principal repayments		(5,036	)		(206	)		-		-
Sales		(19,973	)		-			-		-
Net gain from fair value adjustment of financial assets		-			-			884		-
Net loss from fair value adjustment of financial liabilities		-			-			-		5,651
Decrease in accrued interest payable		-			-			-		(3	)
Other-than-temporary impairment charge		(1,419	)		-			-		-
Change in unrealized gains (losses) included in other comprehensive income		2,953			-			1,275		-
Ending balance	$	-		$	9,223		$	14,935	$	29,570
Changes in unrealized held at period end	$	-		$	-		$	1,275	$	-

During the years ended December 31, 2014 and 2013, there were no transfers between Levels 1 and 2.

During the year ended December 31, 2014 there were no transfers between Level 3 and Level 2.

During the year ended December 31, 2013, transfers from Level 2 to Level 3 included one private issue trust preferred security for $6.1 million. This security was transferred due to illiquidity and reduced price transparency.

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The following table presents the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements as of December 31, 2014:

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Municipals	$	15,519	Discounted cash flows	Discount rate	0.2%	-	4.0%	(2.3%)
Trust Preferred Securities	$	7,090	Discounted cash flows	Discount rate	7.0%	-	7.25%	(7.2%)
Liabilities:
Junior subordinated debentures	$	28,771	Discounted cash flows	Discount rate		7.0%		(7.0%)

The significant unobservable inputs used in the fair value measurement of the Company’s municipal securities valued under Level 3 are the securities’ effective yield. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities valued under Level 3 are the securities’ effective yield, probability of default and loss severity in the event of default. Significant increases or decreases in any of the inputs in isolation would result in a significantly lower or higher fair value measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s junior subordinated Debentures are effective yield. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth the Company's assets and liabilities that are carried at fair value on a non-recurring basis, and the method that was used to determine their fair value, at December 31:

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Loans held for sale	$	-	$	-	$	-	$	-	$	-	$	425	$	-	$	425
Impaired loans		-		-		-		-		22,174		23,544		22,174		23,544
Other real estate owned		-		-		-		-		6,326		2,985		6,326		2,985
Total assets	$	-	$	-	$	-	$	-	$	28,500	$	26,954	$	28,500	$	26,954

138

The following table presents the quantitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements as of December 31, 2014:

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Impaired loans	$	6,981	Income  approach	Capitalization rate	7.3%	to	8.5%	(7.8%)
				Loss severity discount	0.5%	to	81.7%	(21.3%)
Impaired loans	$	6,935	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-41.5%	to	40.0%	(-2.2%)
				Loss severity discount	1.8%	to	89.4%	(20.0%)
Impaired loans	$	8,258	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-55.0%	to	25.0%	(-6.1%)
				Capitalization rate	5.8%	to	11.0%	(8.0%)
				Loss severity discount	0.9%	to	74.4%	(30.0%)
Other real estate owned	$	4,768	Income  approach	Capitalization rate	9.0%	to	12.0%	(9.1%)
				Loss severity discount	0.9%	to	4.9%	(1.0%)
Other real estate owned	$	587	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-11.9%	to	15.0%	(-3.5%)
				Loss severity discount	0.0%	to	36.9%	(9.6%)
Other real estate owned	$	971	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-25.0%	to	0.0%	(-8.9%)
				Capitalization rate	7.5%	to	8.0%	(7.7%)
				Loss severity discount	0.0%	to	6.2%	(3.0%)

The Company carries its Loans held for sale and OREO at the expected sales price less selling costs.

The Company carries its impaired collateral dependent loans at 85% of the appraised or internally estimated value of the underlying property.

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at December 31, 2014 and 2013.

The estimated fair value of each material class of financial instruments at December 31, 2014 and 2013 and the related methods and assumptions used to estimate fair value are as follows:

Cash and Due from Banks, Overnight Interest-Earning Deposits and Federal Funds Sold:

The fair values of financial instruments that are short-term or reprice frequently and have little or no risk are considered to have a fair value that approximates carrying value (Level 1).

FHLB-NY stock:

The fair value is based upon the par value of the stock which equals its carrying value (Level 2).

139

Securities Available for Sale:

The estimated fair values of securities available for sale are contained in Note 6 of Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices (Level 1 input), where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued (Level 2 input). When there is limited activity or less transparency around inputs to the valuation, securities are valued using (Level 3 input).

Loans held for sale:

The fair value of non-performing loans held for sale is estimated through bids received on the loans and, as such, are classified as a Level 3 input.

Loans:

The estimated fair value of loans is estimated by discounting the expected future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities (Level 3 input).

For non-accruing loans, fair value is generally estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets or for collateral dependent loans 85% of the appraised or internally estimated value of the property (Level 3 input).

Due to Depositors:

The fair values of demand, passbook savings, NOW, money market deposits and escrow deposits are, by definition, equal to the amount payable on demand at the reporting dates (i.e. their carrying value) (Level 1). The fair value of fixed-maturity certificates of deposits are estimated by discounting the expected future cash flows using the rates currently offered for deposits of similar remaining maturities (Level 2 input).

Borrowings:

The estimated fair value of borrowings are estimated by discounting the contractual cash flows using interest rates in effect for borrowings with similar maturities and collateral requirements (Level 2 input) or using a market-standard model (Level 3 input).

Interest Rate Caps:

The estimated fair value of interest rate caps is based upon broker quotes (Level 2 input).

Interest Rate Swaps:

The estimated fair value of interest rate swaps is based upon broker quotes (Level 2 input).

Other Real Estate Owned:

OREO are carried at fair value less selling costs.  The fair value is based on appraised value through a current appraisal, or sometimes through an internal review, additionally adjusted by the estimated costs to sell the property (Level 3 input).

Other Financial Instruments:

The fair values of commitments to sell, lend or borrow are estimated using the fees currently charged or paid to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties or on the estimated cost to terminate them or otherwise settle with the counterparties at the reporting date. For fixed-rate loan commitments to sell, lend or borrow, fair values also consider the difference between current levels of interest rates and committed rates (where applicable).

At December 31, 2014 and 2013, the fair values of the above financial instruments approximate the recorded amounts of the related fees and were not considered to be material.

140

The following table sets forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at December 31, 2014:

	December 31, 2014
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	34,265	$	34,265	$	34,265	$	-	$	-
Mortgage-backed Securities		704,933		704,933		-		704,933		-
Other securities		268,377		268,377		-		245,768		22,609
Loans		3,810,373		3,871,087		-		-		3,871,087
FHLB-NY stock		46,924		46,924		-		46,924		-
Interest rate swaps		84		84		-		84		-
OREO		6,326		6,326		-		-		6,326
Total assets	$	4,871,282	$	4,931,996	$	34,265	$	997,709	$	3,900,022
Liabilities:
Deposits	$	3,508,598	$	3,524,123	$	2,202,775	$	1,321,348	$	-
Borrowings		1,056,492		1,070,428		-		1,041,657		28,771
Interest rate swaps		2,649		2,649		-		2,649		-
Total liabilities	$	4,567,739	$	4,597,200	$	2,202,775	$	2,365,654	$	28,771

141

The following table sets forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at December 31, 2013:

	December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	33,485	$	33,485	$	33,485	$	-	$	-
Mortgage-backed Securities		756,156		756,156		-		756,156		-
Other securities		261,634		261,634		-		237,476		24,158
Loans held for sale		425		425		-		-		425
Loans		3,434,178		3,502,792		-		-		3,502,792
FHLB-NY stock		46,025		46,025		-		46,025		-
Interest rate caps		-		-		-		-		-
Interest rate swaps		2,081		2,081		-		2,081		-
OREO		2,985		2,985		-		-		2,985
Total assets	$	4,536,969	$	4,605,583	$	33,485	$	1,041,738	$	3,530,360
Liabilities:
Deposits	$	3,232,780	$	3,253,261	$	2,111,825	$	1,141,436	$	-
Borrowings		1,012,122		1,034,799		-		1,005,229		29,570
Total liabilities	$	4,244,902	$	4,288,060	$	2,111,825	$	2,146,665	$	29,570

142

19. Derivative Financial Instruments

At December 31, 2014, the Company’s derivative financial instruments consisted of interest rate swaps and at December 31, 2013, the Company’s derivative financial instruments consisted of purchased options and interest rate swaps. The Company’s interest rate swaps are used to mitigate the Company’s exposure to rising interest rates on a portion ($18.0 million) of its floating rate junior subordinated debentures that have a contractual value of $61.9 million. Additionally, the Company at times may use interest rate swaps to mitigate the Company’s exposure to rising interest rates on its fixed rate loans.

The purchased options, which expired during 2014, were used to mitigate the Company’s exposure to rising interest rates on its financial liabilities without stated maturities.

At December 31, 2014 and 2013 derivatives with a combined notional amount of $36.3 million and $118.0 million, respectively, were not designated as hedges. Derivatives with a combined notional amount of $14.5 million and $11.2 million were designated as fair value hedges at December 31, 2014 and 2013, respectively. Changes in the fair value of the derivatives not designated as hedges are reflected in “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.  The portion of the change in the fair value of the derivative designated as a fair value hedge which is considered ineffective is reflected in “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.

The following table sets forth information regarding the Company’s derivative financial instruments at December 31, 2014:

	At or for the year ended December 31, 2014
	Notional Amount		Net Carrying Value (1)
	(In thousands)
Interest rate swaps (non-hedge)	$	36,321	$	(2,239	)
Interest rate swaps (hedge)		4,131		84
Interest rate swaps (hedge)		10,340		(410	)
Total derivatives	$	50,792	$	(2,565	)

The following table sets forth information regarding the Company’s derivative financial instruments at December 31, 2013:

	At or for the year ended December 31, 2013
	Notional Amount		Purchase Price		Net Carrying Value (1)
	(In thousands)
Interest rate caps (non-hedge)	$	100,000	$	9,035	$	-
Interest rate swaps (non-hedge)		18,000		-		1,681
Interest rate swaps (hedge)		11,217		-		400
Total derivatives	$	129,217	$	9,035	$	2,081

(1) Derivatives in a net positive position are recorded as “Other assets” and derivatives in a net negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition. There were no unrealized losses on derivative financial instruments at December 31, 2014 and 2013.

143

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

	For the year ended December 31,
(In thousands)	2014			2013			2012
Financial Derivatives:
Interest rate caps (non-hedge)	$	-		$	(18	)	$	(337	)
Interest rate swaps (non-hedge)		(3,919	)		3,603			(1,927	)
Interest rate swaps (hedge)		(124	)		29			-
Net Gain (loss) (1)	$	(4,043	)	$	3,614		$	(2,264	)

(1) Net gains (losses) are recorded as “Net gain (losses) from fair value adjustments” in the Consolidated Statements of Income.

20. New Authoritative Accounting Pronouncements

 In January 2014, the FASB issued ASU 2014-04 to clarify that when an in substance repossession or  foreclosure occurs,  a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction.  ASU 2014- 04 is effective for annual reporting periods beginning after December 15, 2014.  Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. 

In May 2014, the FASB issued ASU 2014-09 which provides new guidance that supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this new guidance on our consolidated results of operations and financial condition.

In June 2014, the FASB issued ASU 2014-11 which amends the authoritative accounting guidance under ASC Topic 860 “Transfers and Servicing.” The amendments require two accounting changes. First, the amendments change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement.  The amendments also require additional disclosures regarding repurchase agreements.  The amendments are effective for the first interim or annual period beginning after December 15, 2014. Entities are required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early adoption is prohibited. The amendments regarding disclosures for certain transactions accounted for as a sale are required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings are required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. We are currently evaluating the impact of adopting these amendments on our consolidated results of operations and financial condition.

144

In August 2014, the FASB issued ASU 2014-14 which amends the authoritative accounting guidance under ASC Topic 310 “Receivables.” The amendments require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the follow conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make claim on the guarantee, and the creditor has the ability to recover under that claim and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Entities should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.

21. Quarterly Financial Data (unaudited)

Selected unaudited quarterly financial data for the fiscal years ended December 31, 2014 and 2013 is presented below:

	2014												2013
	4th			3rd			2nd			1st			4th		3rd		2nd		1st
	(In thousands, except per share data)
Quarterly operating data:
Interest income	$	49,171		$	49,177		$	49,569		$	49,211		$	50,294	$	49,851	$	50,295	$	50,086
Interest expense		12,057			17,220			12,740			12,724			13,058		12,866		12,999		15,940
Net interest income		37,114			31,957			36,829			36,487			37,236		36,985		37,296		34,146
Provision (benefit) for loan losses		(3,192	)		(618	)		(1,092	)		(1,119	)		1,000		3,435		3,500		6,000
Other operating income		(576	)		7,123			1,986			1,710			1,064		945		2,199		5,348
Other operating expense		21,685			21,437			20,624			22,093			18,894		19,050		20,213		22,419
Income before income tax expense		18,045			18,261			19,283			17,223			18,406		15,445		15,782		11,075
Income tax expense		6,988			7,060			7,598			6,927			6,458		6,024		6,155		4,319
Net income	$	11,057		$	11,201		$	11,685		$	10,296		$	11,948	$	9,421	$	9,627	$	6,756
Basic earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Diluted earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Dividends per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.13	$	0.13	$	0.13	$	0.13
Average common shares outstanding for:
Basic earnings per share		29,343			29,772			30,059			29,984			29,762		29,773		30,213		30,449
Diluted earnings per share		29,366			29,796			30,090			30,022			29,802		29,805		30,235		30,481

22. Parent Company Only Financial Information

Earnings of the Bank are recognized by the Holding Company using the equity method of accounting. Accordingly, earnings of the Bank are recorded as increases in the Holding Company’s investment, any dividends would reduce the Holding Company’s investment in the Bank, and any changes in the Bank’s unrealized gain or loss on securities available for sale, net of taxes, would increase or decrease, respectively, the Holding Company’s investment in the Bank.

145

The condensed financial statements for the Holding Company are presented below:

Condensed Statements of Financial Condition	December 31, 2014			December 31, 2013
	(Dollars in thousands)
Assets:
Cash and due from banks	$	7,749		$	16,525
Securities available for sale:
Other securities ($864 and $2,562 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		1,156			2,849
Interest receivable		4			4
Investment in subsidiaries		482,996			449,580
Goodwill		2,185			2,185
Other assets		4,402			4,354
Total assets	$	498,492		$	475,497
Liabilities:
Borrowings (at fair value pursuant to the fair value option at December 31, 2014 and 2013)	$	28,770		$	29,570
Other liabilities		13,475			13,395
Total liabilities		42,245			42,965
Stockholders' Equity:
Preferred stock		-			-
Common stock		315			315
Additional paid-in capital		206,437			201,902
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)		(37,221	)		(22,053	)
Retained earnings		289,623			263,743
Accumulated other comprehensive loss, net of taxes		(2,907	)		(11,375	)
Total equity		456,247			432,532
Total liabilities and equity	$	498,492		$	475,497

	For the years ended December 31,
Condensed Statements of Income	2014			2013			2012
	(In thousands)
Dividends from the Bank	$	20,000		$	20,000		$	20,000
Interest income		512			590			694
Interest expense		(1,039	)		(1,066	)		(2,957	)
Gain on sale of securities		-			17			-
Net gain (loss) from fair value adjustments		779			(5,475	)		1,991
Other operating expenses		(786	)		(621	)		(730	)
Income before taxes and equity in undistributed earnings of subsidiary		19,466			13,445			18,998
Income tax benefit		668			2,857			498
Income before equity in undistributed earnings of subsidiary		20,134			16,302			19,496
Equity in undistributed earnings of the Bank		24,105			21,450			14,835
Net income	$	44,239		$	37,752		$	34,331

146

	For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013			2012
	(In thousands)
Operating activities:
Net income	$	44,239		$	37,752		$	34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(24,105	)		(21,450	)		(14,835	)
Net gain on sale of securities		-			(17	)		-
Deferred income tax (benefit) provision		17			(2,348	)		858
Fair value adjustments for financial assets and financial liabilities		(779	)		5,475			(1,991	)
Stock based compensation expense		4,246			3,068			3,105
Net change in operating assets and liabilities		2,088			1,746			1,287
Net cash provided by operating activities		25,706			24,226			22,755
Investing activities:
Purchases of securities available for sale		(22	)		(23	)		(29	)
Proceeds from sales and calls of securities available for sale		1,699			517			-
Net cash provided by (used in) investing activities		1,677			494			(29	)
Financing activities:
Purchase of treasury stock		(18,872	)		(14,151	)		(5,622	)
Cash dividends paid		(17,852	)		(15,618	)		(15,817	)
Stock options exercised		565			533			956
Net cash used in  financing activities		(36,159	)		(29,236	)		(20,483	)
Net (decrease) increase in cash and cash equivalents		(8,776	)		(4,516	)		2,243
Cash and cash equivalents, beginning of year		16,525			21,041			18,798
Cash and cash equivalents, end of year	$	7,749		$	16,525		$	21,041

147

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Flushing Financial Corporation

We have audited the accompanying consolidated statements of financial condition of Flushing Financial Corporation (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2014 and 2013, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2014.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Flushing Financial Corporation and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2014, based on criteria established in the 2013 Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and our report dated March 16, 2015 expressed an unqualified opinion.

/s/ GRANT THORNTON LLP

New York, New York

March 16, 2015

148

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

Flushing Financial Corporation

We have audited the internal control over financial reporting of Flushing Financial Corporation (a Delaware corporation) and subsidiaries (the "Company")  as of December 31, 2014, based on criteria established in the 2013  Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements of the Company as of and for the year ended December 31, 2014, and our report dated March 16, 2015 expressed an unqualified opinion on those financial statements.

/s/ GRANT THORNTON LLP

New York, New York

March 16, 2015

149

Item 9.     Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A.     Controls and Procedures.

Disclosure Controls and Procedures

The Company carried out, under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this Annual Report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2014, the design and operation of these disclosure controls and procedures were effective. During the period covered by this Annual Report, there have been no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2014.  Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effected by the Company’s Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014 based upon criteria in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (“COSO”).  Based on this assessment, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2014 based on those criteria issued by COSO.

Grant Thornton LLP, the Company’s independent registered public accounting firm that audited the Company’s consolidated financial statements included in this Annual Report on Form 10-K, has issued a report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014, as stated in its report which appears on page 149.

Item 9B.   Other Information.

None.

150

PART III

Item 10.    Directors, Executive Officers and Corporate Governance.

Other than the disclosures below, information regarding the directors and executive officers of the Company appears in the Company’s Proxy Statement for the Annual Meeting of Stockholders to be held May 19, 2015 (“Proxy Statement”) under the captions “Board Nominees,” “Continuing Directors,” “Executive Officers Who Are Not Directors” and “Meeting and Committees of the Board of Directors – Audit Committee” and is incorporated herein by this reference. Information regarding Section 16(a) beneficial ownership appears in the Company’s Proxy Statement under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” and is incorporated herein by this reference.

Code of Ethics. The Company has adopted a Code of Business Conduct and Ethics that applies to all of its directors, officers and employees. This code is publicly available on the Company’s website at: https://www.snl.com/Cache/1001183751.PDF?Y=&O=PDF&D=&FID=1001183751&T=&IID=102398

Any substantive amendments to the code and any grant of a waiver from a provision of the code requiring disclosure under applicable SEC or NASDAQ rules will be disclosed in a report on Form 8-K.

Audit Committee Financial Expert. The Board of Directors of the Company has determined that Louis C. Grassi, the Chairman of the Audit Committee, is an “audit committee financial expert” as defined under Item 401(h) of Regulation S-K, and that he is independent as defined under applicable NASDAQ listing standards. Mr. Grassi is a certified public accountant and a certified fraud examiner.

Item 11.    Executive Compensation.

Information regarding executive compensation appears in the Proxy Statement under the caption “Executive Compensation” and is incorporated herein by this reference.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

Information regarding security ownership of certain beneficial owners appears in the Proxy Statement under the caption “Stock Ownership of Certain Beneficial Owners” and is incorporated herein by this reference.

Information regarding security ownership of management appears in the Proxy Statement under the caption “Stock Ownership of Management” and is incorporated herein by this reference.

Item 13.    Certain Relationships and Related Transactions, and Director Independence.

Information regarding certain relationships and related transactions and directors independence appears in the Proxy Statement under the captions “Compensation Committee Interlocks and Insider Participation” and “Related Party Transactions” and is incorporated herein by this reference.

Item 14.    Principal Accounting Fees and Services.

Information regarding fees paid to the Company’s independent auditor appears in the Proxy Statement under the caption “Schedule of Fees to Independent Auditors” and is hereby incorporated by this reference.

151

PART IV

Item 15.     Exhibits, Financial Statement Schedules.

(a)   1.      Financial Statements

The following financial statements are included in Item 8 of this Annual Report and are incorporated herein by this reference:

· Consolidated Statements of Financial Condition at December 31, 2014 and 2013

· Consolidated Statements of Income for each of the three years in the period ended December 31, 2014

· Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2014

· Consolidated Statements of Changes in Stockholders’ Equity for each of the three years in the period ended December 31, 2014

· Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2014

· Notes to Consolidated Financial Statements

· Reports of Independent Registered Public Accounting Firm

2.      Financial Statement Schedules

Financial Statement Schedules have been omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto included in Item 8 of this Annual Report and are incorporated herein by this reference.

152

3.       Exhibits Required by Securities and Exchange Commission Regulation S-K

Exhibit Number	Description
2.1	Agreement and Plan of Merger dated as of December 20, 2005 by and between Flushing Financial Corporation  and Atlantic Liberty Financial Corp. (10)
3.1	Certificate of Incorporation of Flushing Financial Corporation (1)
3.2	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (5)
3.3	Certificate of Amendment to Certificate of Incorporation of Flushing Financial Corporation (19)
3.4	Certificate of Designations of Series A Junior Participating Preferred Stock of Flushing Financial Corporation (6)
3.5	Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock of Flushing Financial Corporation (13)
3.6	Amended and Restated By-Laws of Flushing Financial Corporation (23)
3.7	Certificate of Designation relating to the Fixed Rate Cumulative Perpetual Preferred Stock Series B (14)
4.1	Rights Agreement, dated as of September 8, 2006, between Flushing Financial Corporation and Computershare Trust Company N.A., as Rights Agent, which includes the form of Certificate of Increase of Shares Designated as Series A Junior Participating Preferred Stock as Exhibit A, form of Right Certificate as Exhibit B and the Summary of Rights to Purchase Preferred Stock as Exhibit C (12)
4.2	Flushing Financial Corporation has outstanding certain long-term debt. None of such debt exceeds ten percent of Flushing Financial Corporation’s total assets; therefore, copies of constituent instruments defining the rights of the holders of such debt are not included as exhibits. Copies of instruments with respect to such long-term debt will be furnished to the Securities and Exchange Commission upon request.
10.1*	Form of Amended and Restated Employment Agreement between Flushing Bank and Certain Officers (20)
10.2*	Form of Amended and Restated Employment Agreement between Flushing Financial Corporation and Certain Officers (20)
10.3*	Amended and Restated Employment Agreement between Flushing Financial Corporation and John R. Buran (20)
10.4*	Amended and Restated Employment Agreement between Flushing Bank and John R. Buran (20)
10.5*	Amended and Restated Employment Agreement between Flushing Financial Corporation and Maria A. Grasso (20)
10.6*	Amended and Restated Employment Agreement between Flushing Bank and Maria A. Grasso (20)
10.7*	Flushing Bank Specified Officer Change in Control Severance Policy (16)
10.8*	Amended and Restated Employee Severance Compensation Plan of Flushing Bank (4)
10.9*	Amended and Restated Outside Director Retirement Plan (11)
10.10*	Amended and Restated Flushing Bank Outside Director Deferred Compensation Plan (4)
10.11*	Amended and Restated Flushing Bank Supplemental Savings Incentive Plan (filed herewith)
10.12	Form of Indemnity Agreement among Flushing Bank, Flushing Financial Corporation, and each Director (2)
10.13	Form of Indemnity Agreement among Flushing Bank, Flushing Financial Corporation, and Certain Officers (2)
10.14*	Employee Benefit Trust Agreement (1)
10.15*	Amendment to the Employee Benefit Trust Agreement (3)
10.16*	Loan Document for Employee Benefit Trust (1)
10.17*	Guarantee by Flushing Financial Corporation (1)
10.18*	1996 Restricted Stock Incentive Plan of Flushing Financial Corporation (8)
10.19*	1996 Stock Option Incentive Plan of Flushing Financial Corporation (7)
10.20*	Description of Outside Director Fee Arrangements (15)
10.21*	Form of Outside Director Restricted Stock Award Letter (9)
10.22*	Form of Outside Director Restricted Stock Unit Award Letter (19)
10.23*	Form of Outside Director Stock Option Grant Letter (9)
10.24*	Form of Employee Restricted Stock Award Letter (9)
10.25*	Form of Employee Restricted Stock Unit Award Letter (22)
10.26*	Form of Employee Stock Option Award Letter (9)
10.27*	Amended and Restated  Flushing Financial Corporation 2005 Omnibus Incentive Plan (17)
10.28	Amendment to Flushing Financial Corporation 2005 Omnibus Incentive Plan (18)
10.29*	Annual Incentive Plan for Executives and Senior Officers (19)

153

10.30	Form of Amendment to Employee Stock Option Award Letter (21)
10.31	Form of Amendment to Director Stock Option Award Letter (21)
10.32	Lease agreement between Flushing Bank and Rexcorp Plaza SPE LLC (23)
10.33	Flushing Financial Corporation 2014 Omnibus Incentive Plan (23)
21.1	Subsidiaries information incorporated herein by reference to Part I – Subsidiary Activities
23.1	Consent of Independent Registered Public Accounting Firm (filed herewith)
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (filed herewith)
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (filed herewith)
32.1	Certification Pursuant to 18 U.S.C, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer (furnished herewith)
32.2	Certification Pursuant to 18 U.S.C, Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer (furnished herewith)
101.INS	XBRL Instance Document (filed herewith)
101.SCH	XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (filed herewith)
101.LAB	XBRL Taxonomy Extension Label Linkbase Document (filed herewith)
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)

*Indicates compensatory plan or arrangement.

(1) Incorporated by reference to Exhibits filed with the Registration Statement on Form S-1 filed September 1, 1995, Registration No. 33-96488.

(2) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 1996.

(3) Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 1997.

(4) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 2000.

(5) Incorporated by reference to Exhibits filed with Form S-8 filed May 31, 2002.

(6) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 2002.

(7) Incorporated by reference to Exhibit filed with Form 10-K for the year ended December 31, 2003.

(8) Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2004.

(9) Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2004.

(10) Incorporated by reference to Exhibit filed with Form 8-K filed December 23, 2005.

(11) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended March 31, 2006.

(12) Incorporated by reference to Exhibit filed with Form 8-K filed September 11, 2006.

(13) Incorporated by reference to Exhibit filed with Form 8-K filed September 26, 2006.

(14) Incorporated by reference to Exhibits filed with Form 8-K filed December 23, 2008.

(15) Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2008.

(16) Incorporated by reference to Exhibit filed with Form 10-Q for the quarter ended June 30, 2011.

(17) Incorporated by reference to Appendices filed with Proxy Statement on Schedule 14A filed April 7, 2011.

(18) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended September 30, 2011.

(19) Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2011.

(20) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended June 30, 2013.

(21) Incorporated by reference to Exhibits filed with Form 10-K for the year ended December 31, 2012.

(22) Incorporated by reference to Exhibits filed with Form 10-k for the year ended December 31, 2013.

(23) Incorporated by reference to Exhibits filed with Form 10-Q for the quarter ended June 30, 2014.

154

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) the Securities Exchange Act of 1934, the Company has duly caused this report or amendment thereto, to be signed on its behalf by the undersigned, thereunto duly authorized, in New York, New York, on March 16, 2015.

FLUSHING FINANCIAL CORPORATION
By	/S/JOHN R. BURAN
	John R. Buran President and CEO

POWER OF ATTORNEY

We, the undersigned directors and officers of Flushing Financial Corporation (the “Company”) hereby severally constitute and appoint John R. Buran and David Fry as our true and lawful attorneys and agents, each acting alone and with full power of substitution and re-substitution, to do any and all things in our names in the capacities indicated below which said John R. Buran or David Fry may deem necessary or advisable to enable the Company to comply with the Securities Exchange Act of 1934, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with the report on Form 10-K, or amendment thereto, including specifically, but not limited to, power and authority to sign for us in our names in the capacities indicated below the report on Form 10-K, or amendment thereto; and we hereby approve, ratify and confirm all that said John R. Buran or David Fry shall do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report on Form 10-K, or amendment thereto, has been signed by the following persons in the capacities and on the dates indicated.

Signature	Title	Date
/S/JOHN R. BURAN	Director, President (Principal Executive Officer)	March 3, 2015
John R. Buran
/S/JOHN E. ROE, SR.	Director, Chairman	March 3, 2015
John E. Roe, Sr.
/S/DAVID FRY	Treasurer (Principal Financial and Accounting Officer)	March 3, 2015
David Fry
/S/ JAMES D. BENNETT	Director	March 3, 2015
James D. Bennett
/S/STEVEN J. D'IORIO	Director	March 3, 2015
Steven J. D'Iorio

155

/S/LOUIS C. GRASSI	Director	March 3, 2015
Louis C. Grassi
/S/SAM S. HAN	Director	March 3, 2015
Sam S. Han
/S/MICHAEL J. HEGARTY	Director	March 3, 2015
Michael J. Hegarty
/S/JOHN J. MCCABE	Director	March 3, 2015
John J. McCabe
/S/ALFRED A. DELLIBOVI	Director	March 3, 2015
Alfred A. DelliBovi
/S/DONNA M. O'BRIEN	Director	March 3, 2015
Donna M. O'Brien
/S/MICHAEL J. RUSSO	Director	March 3, 2015
Michael J. Russo
/S/THOMAS S. GULOTTA	Director	March 3, 2015
Thomas S. Gulotta

156

EX-10.11

Exhibit 10.11

FLUSHING BANK

SUPPLEMENTAL SAVINGS INCENTIVE PLAN

(Restated as of February 1, 2015)

Unless otherwise required by the context, the capitalized terms used herein without definition are defined in the Flushing Bank 401(k) Savings Plan (the “401(k) Plan”) and shall have the same meanings as used therein.

DEFINITIONS

The following terms shall have the meanings set forth below when used in this Supplemental Savings Incentive Plan (the “Plan”):

(a) Deferral Credit - the amount credited pursuant to the Plan equal to (A) a Participant’s compensation deferred pursuant to the Plan (“Elective Deferral Credits”) plus (B) effective January 1, 2008, the amount of elective deferrals that would have been contributed to a Participant’s account under the 401(k) Plan but for the limitations imposed by Section 415 of the Internal Revenue Code of 1986, as amended (the “Code”), and that would otherwise be required to be returned to the Participant (“Makeup Deferral Credits”).

(b) Matching Credit - the amount credited pursuant to the Plan by Flushing Bank (the “Bank”) on behalf of a Participant equal to (A) 50% of the Participant’s Elective Deferral Credit, or such other percentage of the Participant’s Elective Deferral Credit as may be determined on a prospective basis by resolution of the Board of Directors of the Bank (“Regular Matching Credits”) plus (B) effective January 1, 2008, the amount of matching contributions that would have been contributed to a Participant’s account under the 401(k) Plan but for the limitations imposed by Section 415 of the Code and that would otherwise be required to be forfeited (“Makeup Matching Credits”).

(c) Supplemental Credit - the amount credited pursuant to the Plan by the Bank equal to (A) the amount of contributions (but not forfeitures) that would have been contributed to a Participant’s account under the Flushing Financial Corporation Stock-Based Profit Sharing Plan prior to May 1, 2008 or under the profit sharing (but not retirement account) component of the 401(k) Plan after April 30, 2008 (collectively, the “Profit Sharing Plan”) but for the limitations imposed by the Code, including without limitation, Section 401(a)(17) of the Code, Section 415 of the Code, and the exclusion from Compensation (as defined in the Profit Sharing Plan) of amounts deferred under this Plan (collectively, the “Code Limitations”), plus (B) effective January 1, 2008, the amount of retirement account contributions and the amount of forfeitures that would have been allocated to a Participant’s account under the Profit Sharing Plan or 401(k) Plan but for the limitations imposed by Section 415 of the Code, in each case in excess of the amounts permitted to be contributed to the Profit Sharing Plan and 401(k) Plan.

(d) Grandfathered Portion – the amount credited to a Participant under the Plan as of December 31, 2004, to the extent vested as of December 31, 2004, plus subsequent earnings (or losses) credited with respect to such amount less subsequent distributions of any such amount.  The Bank shall separately account for the Grandfathered Portion of the amounts credited to a Participant under the Plan.

(e) Non-Grandfathered Portion – all amounts credited to a Participant under the Plan other than the Grandfathered Portion.

(f) Section 409A – Section 409A of the Code and applicable Treasury Regulations thereunder.

1.           PURPOSE OF THE PLAN

The purpose of this Plan is (i) to provide a procedure whereby certain senior officers of the Bank are permitted to defer a portion of their compensation and to receive Matching Credits with respect to such deferrals, and (ii) to provide Credits for certain senior officers whose benefits under the Profit Sharing Plan or 401(k) Plan are subject to the Code Limitations. It is intended that the Plan be an unfunded plan of deferred compensation covering a select group of highly compensated or management employees.

2.           EFFECTIVE DATE

The Plan first became effective on January 1, 1990 and was amended and restated at various times.  This Restatement is effective as of February 1, 2015.

3.           ELIGIBILITY

All full-time senior vice presidents level II or above of the Bank who have completed at least one year of service shall be Participants in the Plan.  In addition, all senior vice presidents level III and vice presidents of the Bank who were Participants on January 31, 2015 shall continue to be Participants in the Plan; provided, however, that if any such senior vice president level III or vice president (other than a senior vice president level II or above) does not elect to defer compensation under this Plan for 2015 or any subsequent calendar year in accordance with the first two paragraphs of Paragraph 4 below, such senior vice president level III or vice president shall no longer be a Participant in the Plan for such year or any subsequent year.

4.           TYPES OF CREDITS

Deferral Credits. Each Participant shall be entitled to defer compensation under this Plan. The maximum amount that a Participant may defer from his compensation for a calendar year shall be equal to 15% of his Actual Compensation, less 6% of his compensation as defined for purposes of pre-tax contributions under the 401(k) Plan.  Actual Compensation for this purpose shall mean a Participant’s base compensation for a calendar year without reduction for any pre-tax contributions to the 401(k) Plan or to any other pension or welfare plan maintained by the Bank, and without regard to any limitation on compensation imposed by Section 401(a)(17) of the Code. The amount by which a Participant defers his compensation for a calendar year under this Plan shall be credited by the Bank on behalf of such Participant (“Elective Deferral Credits”).

All deferrals of compensation agreed to by a Participant for a calendar year shall be in writing on a form prepared by the Bank. Each such deferral election shall be entered into before the beginning of the calendar year to which it relates, except that any person who first becomes eligible to participate in the Plan during a calendar year may elect within 30 days of first becoming eligible to defer a portion of his compensation (as provided in this Plan) earned after the date of such election. All elections shall be irrevocable for the duration of the year or the remaining portion of the year for which the election is made.

Effective January 1, 2008, each Participant shall also be credited with the amount of elective deferrals that would have been contributed to the Participant’s account under the 401(k) Plan but for the limitations imposed by Section 415 of the Code and that would otherwise be required to be returned to the Participant (“Makeup Deferral Credits”).

Elective Deferral Credits and Makeup Deferral Credits are referred to as Deferral Credits.

Matching Credits. In addition to a Participant’s Deferral Credit, in each calendar year the Bank shall also credit each Participant in the Plan with a Matching Credit in an amount equal to 50% (or such other percentage as determined by the Board of Directors of the Bank on a prospective basis) of such Participant’s Elective Deferral Credit for such calendar year (“Regular Matching Credits”).

Effective January 1, 2008, each Participant shall also be credited with the amount of matching contributions that would have been contributed to a Participant’s account under the 401(k) Plan but for the limitations imposed by Section 415 of the Code and that would otherwise be required to be forfeited (“Makeup Matching Credits”).

Regular Matching Credits and Makeup Matching Credits are referred to as Matching Credits.

Supplemental Credits. In addition to Deferral Credits and Matching Credits, the Bank shall also credit each Participant in the Plan with a number of phantom shares (“Phantom Shares”) of common stock of Flushing Financial Corporation (“Common Stock”) equal to the number of shares of Common Stock that would have been credited to the Participant’s account under the Profit Sharing Plan but for the Code Limitations.

Effective January 1, 2008, each Participant shall also be credited with the amount of retirement account contributions and forfeitures that would have been allocated to a Participant’s account under the Profit Sharing Plan or 401(k) Plan but for the limitations imposed by Section 415 of the Code.

These additional credits shall be referred to as Supplemental Credits.

5.           TIME OF CREDITING; EARNINGS

All Deferral Credits, Matching Credits, and Supplemental Credits (collectively referred to as “Credits”) made on behalf of a Participant pursuant to Paragraph 4 above shall be credited by the Bank as an item of indebtedness of the Bank to the Participant. A Participant’s Elective Deferral Credit shall be credited to the Participant as a fixed dollar amount on the date that the deferred compensation with respect to which such Credit arises would have been paid by the Bank to the Participant (but for such deferral).  A Participant’s Makeup Deferral Credit will be credited on the date such amounts would otherwise have been required to be returned to the Participant. Each Regular Matching Credit shall be credited as a fixed dollar amount at the same time as the Elective Deferral Credit to which it relates.  Each Makeup Matching Credit will be credited on the date such amount would otherwise have been required to be forfeited. Each Supplemental Credit shall be credited at the same time as the contributions or forfeitures would have been allocated under the Profit Sharing Plan or 401(k) Plan.

Prior to July 1, 1991 all Deferral Credits and Matching Credits accrued interest, compounded from month to month on the basis of the balance of such Credits (plus accrued interest) on the first day of the preceding month at a rate determined by the Board of Trustees of the Flushing Savings Bank (predecessor to the Bank) at the beginning of each calendar year.

For the period from July 1, 1991 through December 2, 2007, all Deferral Credits and Matching Credits, and all accrued interest thereon, were deemed to be invested in one or more of the investment funds offered by Retirement System Fund, Inc. or in such other funds as were specified by the Bank from time to time, in multiples of 10%, as directed from time to time no more frequently than once each calendar quarter by the respective Participant.

Effective December 3, 2007, all Deferral Credits and Matching Credits, and all accrued interest and earnings thereon, shall be deemed to be invested in one or more of the investments funds designated as permitted investments by the Bank from time to time, as directed from time to time by the respective Participant (but, for periods prior to March 1, 2008, no more frequently than once each quarter) in accordance with rules and procedures established from time to time by the Bank.

Supplemental Credits shall be deemed to be invested exclusively in Common Stock, provided, however, that in the event of a transaction described in the first paragraph of Paragraph 13, Supplemental Credits shall be deemed invested in the manner set forth in such paragraph.

Participants shall be credited, on a daily basis (or, for periods prior to March 1, 2008, on at least a quarterly basis), with the earnings (or losses) on such deemed investments.

6.           VESTING

A Participant’s Deferral Credits (and earnings thereon) shall be 100% vested. Matching Credits (and earnings thereon) and Supplemental Credits (and earnings thereon) made on behalf of a Participant shall become 100% vested upon the Participant’s death while employed by Flushing Financial Corporation (the “Holding Company”), the Bank or any Related Company, or upon a Change of Control (as defined in Paragraph 13) while employed by the Holding Company, the Bank, or a Related Company, and otherwise shall vest in accordance with the vesting schedule under the 401(k) Plan or the Profit Sharing Plan, as the case may be, taking into account any service for vesting purposes that is recognized under the 401(k) Plan or the Profit Sharing Plan, as the case may be.  If a Participant terminates employment (for reasons other than death, retirement or disability) at a time when he is less than 100% vested in his Matching Credits or Supplemental Credits, the non-vested portion of such Matching Credits (and earnings thereon) and/or Supplemental Credits (and earnings thereon) shall at that time be forfeited, and such forfeiture shall not be restored, irrespective of whether the Participant again becomes an employee of the Holding Company, the Bank or any Related Company.

7.           METHOD OF PAYMENT

The aggregate amount of a Participant’s Deferral Credits and the vested portion of his Matching Credits and Supplemental Credits (including all earnings credited thereon) shall be paid to the Participant in the form of a cash lump sum within sixty (60) days following his termination of employment with the Holding Company, the Bank and any Related Company, unless the Participant elects to receive his benefits in one of the following manners: (i) in the form of a cash lump sum within sixty (60) days following the last day of the calendar year in which occurs his termination of employment; (ii) in substantially equal annual installments (or, in the case of elections made prior to January 1, 2002, substantially equal quarterly installments) over a period of five (5) or fewer years commencing within sixty (60) days following the Participant’s termination of employment, and, if elected by the Participant, with any unpaid installments payable in a lump sum within sixty (60) days after the Participant’s death or; (iii) with respect to Deferral Credits and Matching Credits credited on or after January 1, 2010, in a specified year which is at least two years after the first day of the calendar year in which such amounts were credited (i.e., a payment no earlier than January 1, 2012 for Deferral Credits and Matching Credits credited during 2010 pursuant to a deferral election made in 2009).  An election to have benefits paid under clause (iii) above shall be specified as a dollar amount (not to exceed the Participant’s vested account balance of Deferral Credits and Matching Credits credited with respect to the applicable deferral year) or as a percentage (which may be less than 100%) of the Participant’s vested account balance of Deferral Credits and Matching Credits credited with respect to the applicable deferral year (in each case reflecting earnings and losses credited with respect thereto).  In the event the Participant’s termination of employment occurs before the payment year specified pursuant to clause (iii) above, payment of amounts elected under clause (iii) above shall instead be made within sixty (60) days following the Participant’s termination of employment.  Portions of a Participant’s vested account balance which are not eligible for payment under clause (iii) above (i.e. those attributable to Supplemental Credits and to Matching Credits that were not vested as of the payment date in the specified year) shall be payable in the form of a cash lump sum within sixty (60) days following the Participant’s termination of employment unless the Participant has elected payment under clause (i) or (ii) above for such amounts.    In the case of the Grandfathered Portion, such election must be made by written notice delivered to the Bank at least twelve (12) months prior to such termination of employment and shall indicate whether payment of any unpaid benefits shall be made in a lump sum upon the Participant’s death.  In the case of the Non-Grandfathered Portion attributable to Deferral Credits, Matching Credits or Supplemental Credits credited with respect to any calendar year, such election must be made in writing prior to the beginning of the calendar year with respect to which such Deferral Credits, Matching Credits or Supplemental Credits are credited (or, in the case of a Participant who first becomes eligible to participate in the Plan during a calendar year, within 30 days of first becoming eligible to participate), shall indicate whether any unpaid benefits shall be made in a lump sum upon the Participant’s death, and shall be irrevocable; except that prior to the Participant’s termination of employment, the Participant and the Employer may agree to change the method of payment of the Non-Grandfathered Portion provided that: (i) such agreement is made at least one year prior to the date on which the Non-Grandfathered Portion is scheduled to be paid, or in the case of installment payments, one year prior to the date on which the affected installment is scheduled to be paid, (ii) the redesignated payment date for the Non-Grandfathered Portion or installment payment, as the case may be, is no less than five years after the date on which such Non-Grandfathered Portion or installment payment would otherwise be paid, and (iii) the change in method of payment may not take effect until 12 months following the date of the agreement making such change.

During the period of any installment distribution, the balance of funds owed to such former Participant shall be deemed to be invested by the Bank in accordance with the provisions set forth in Paragraph 5 above as they would be applicable to a Participant who continued to be employed by the Bank. The amount of each installment shall be equal to the total value of a Participant’s Deferral Credits and the vested portion of his Matching Credits and Supplemental Credits (including all earnings credited thereon) on the relevant installment payment date (or, in the case of installments paid prior to January 1, 2008, the tenth (10th) day prior to the relevant installment payment date), divided by the total number of remaining installment payments elected. The Participant’s account in the Plan shall be debited by the amount of any payment made to the Participant from his account.  Each installment payment under this Paragraph 7 shall be treated as a separate payment for purposes of Section 409A.

Notwithstanding any election by a Participant to defer payment of benefits following termination of employment, in the event that (i) a Participant has a termination of employment (for any reason) within three (3) years after a Change of Control, or (ii) a Change of Control occurs at any time after a Participant’s termination of employment, the aggregate amount of the Participant’s Deferral Credits and the vested portion of his Matching Credits and Supplemental Credits (including the vested portion of all earnings credited thereon) which have not previously been paid to such Participant shall be paid to the Participant in the form of a cash lump sum within thirty (30) days following the Participant’s termination of employment (in the case of clause (i)) or the Change of Control (in the case of clause (ii)); provided, however, that the payment of the Non-Grandfathered Portion shall not be accelerated and shall continue to be paid in accordance with the Participant’s applicable payment election if (A) the Change of Control does not constitute a “change of control” for purposes of Section 409A or (B) in the case of clause (i), the termination of employment does not occur within two (2) years after the Change of Control.

Notwithstanding anything to the contrary in this Paragraph 7:  (i) with respect to the Non-Grandfathered Portion, a Participant’s termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Code Section 409A); and (ii) if a Participant is a “specified employee” within the meaning of Section 409A as determined by the Bank’s Employee Benefits Committee in accordance with Section 409A and if any amounts (other than amounts payable from the Grandfathered Portion) are payable under this Plan on account of the Participant’s “separation from service” within the meaning of Section 409A (other than on account of death), then any amounts that would otherwise be paid, or in the case of installment payouts commence to be paid, to the Participant under this Paragraph 7 within six months of such separation from service (other than amounts payable from the Grandfathered Portion) shall automatically be deferred and paid, or in the case of installment payouts commence to be paid, on the six month anniversary of such separation from service (or the date of the Participant’s death, if earlier).

8.           BENEFICIARY

Each Participant may, at any time, designate a beneficiary to receive his Deferral Credits and vested Matching Credits and Supplemental Credits under the Plan (including all earnings credited thereon) in the event of his death prior to all such amounts being paid to him. Such designation of beneficiary shall become effective when received by the Bank, and shall be on a form provided by or otherwise acceptable to the Bank.

In the event of the death of a Participant either prior to designating a beneficiary pursuant to this Paragraph 8, or concurrent with or after the death of such beneficiary, or in the event of such beneficiary’s death before he is paid all of the amounts due to him as a result of the Participant’s death, such amounts shall be paid to the estate of the later to die of the Participant or his beneficiary; provided, however, that in the event that the Participant provides for a contingent beneficiary and such contingent beneficiary is surviving at the time of the later of the death of the Participant or his primary beneficiary, such amount shall be paid to such contingent beneficiary. A Participant may designate a trust as a beneficiary.

9.           NONASSIGNABILITY

A Participant’s or beneficiary’s right to any Credits accumulated hereunder (including any earnings credited thereon) shall not be transferable or assignable, except by reason of the laws of descent and distribution.

10.           NO EQUITABLE OR SECURITY RIGHT CREATED

The Holding Company or the Bank, by determination of the Board of Directors of the Bank, may enter into an agreement with another organization to hold the deferred funds and administer the Plan in accordance with the rules and procedures outlined herein. Notwithstanding the foregoing, no Participant or beneficiary entitled to receive Credits (including earnings credited thereon) under this Plan shall have any equitable or security rights in any specific assets of the Holding Company or the Bank, and the rights of Participants or their beneficiaries under this Plan shall not be greater than the rights of unsecured general creditors of the Holding Company or the Bank.

All Credits (including all earnings credited thereon) shall constitute general assets of the Holding Company or the Bank and neither a Participant nor any designated beneficiary shall have any rights in or against any amounts held by the Holding Company or the Bank as Credits under this Plan. Credits (including all earnings credited thereon) may not be encumbered or assigned by a Participant or any beneficiary.

11.           EFFECT OF DETERMINATION

If any amounts deferred pursuant to the Plan are found in a “determination” (within the meaning of Section 1313(a) of the Code) to have been includible in gross income by a Participant prior to payment of such amounts under the Plan, such amounts shall be immediately paid to such Participant, notwithstanding his deferral and payment elections.

12.           TAX WITHHOLDING

If upon the crediting or payment of any benefits under the Plan, the Bank or any related employer shall be required to withhold any amounts with respect to such benefits by reason of any federal, state or local tax laws, rules or regulations, then the Bank or such employer shall be entitled to deduct and withhold such amounts from any such benefits. In any event, the recipient of such benefits shall make available to the Bank or such employer, promptly when requested by the Bank or the employer, sufficient funds or other property to meet the requirements of any withholding; furthermore, the Bank or such employer shall be entitled to take and authorize such steps as it may deem advisable in order to have the amounts required to be withheld made available to it out of any funds or property payable to the recipient of the benefits, whether under the Plan or otherwise.

13.           CHANGE OF CONTROL

In the event of a merger, acquisition or other corporate transaction as a result of which the Common Stock is no longer outstanding or the Bank or the Holding Company survives as a subsidiary of another entity, each share of Phantom Stock credited as Supplemental Credits shall be converted to a fixed dollar amount equal to the fair market value of the cash, securities, and/or other property payable in the merger or other transaction to the holder of a share of Common Stock, and thereafter Supplemental Credits shall be deemed to be invested in the same manner as Deferral Credits and Matching Credits.

For purposes of this Plan, a “Change of Control” means:

(a) the acquisition of all or substantially all of the assets of the Bank or the Holding Company by any person or entity, or by any persons or entities acting in concert; or

(b) the occurrence of any event if, immediately following such event, a majority of the members of the Board of Directors of the Bank or the Holding Company or of any successor corporation shall consist of persons other than Current Members (for these purposes, a “Current Member” shall mean any member of the Board of Directors of the Bank or the Holding Company as of the effective date of the Bank’s conversion from the mutual to the capital stock form of ownership, and any successor of a Current Member whose nomination or election has been approved by a majority of the Current Members then on the Board of Directors); or

(c) the acquisition of beneficial ownership, directly or indirectly (as provided in Rule 13d-3 under the Securities Exchange Act of 1934 (the “Act”), or any successor rule), of 25% or more of the total combined voting power of all classes of stock of the Bank or the Holding Company by any person or group deemed a person under Section 13(d)(3) of the Act; or

(d) approval by the stockholders of the Bank or the Holding Company of an agreement providing for the merger or consolidation of the Bank or the Holding Company with another corporation where the stockholders of the Bank or the Holding Company, immediately prior to the merger or consolidation, would not beneficially own, directly or indirectly, immediately after the merger or consolidation, shares entitling such stockholders to 50% or more of the total combined voting power of all classes of stock of the surviving corporation.

14.           CHOICE OF LAW

This Plan shall be construed in accordance with the laws of the State of New York, without reference to conflicts of law principles.

15.           MISCELLANEOUS

(a) The Plan shall be administered by the Bank’s Employee Benefits Committee. The decision of such Committee with respect to any questions arising as to the interpretation of this Plan, including the severability of any and all of the provisions thereof, shall be final, conclusive and binding.

(b) The Bank reserves the right to modify this Plan from time to time or to terminate the Plan entirely by action of the Board of Directors of the Bank; provided, however, that (i) no modification or termination of this Plan shall operate to reduce amounts already credited to a Participant under the Plan, or to reduce the right to future earnings credits as set forth in Paragraph 5, unless the affected Participant consents; and (ii) no modification or termination may accelerate the payment of the Non-Grandfathered Portion of amounts credited to any Participant or beneficiary under the Plan except as permitted by Section 409A.

(c) No amounts owed hereunder shall be deemed a deposit or a checking or savings account.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our reports dated March 16, 2015, with respect to the consolidated financial statements and internal control over financial reporting included in the Annual Report of Flushing Financial Corporation on Form 10-K for the year ended December 31, 2014. We hereby consent to the incorporation by reference of said reports in the Registration Statements of Flushing Financial Corporation on Forms S-8 (File Nos. 33-98202, effective October 16, 1995; 333-125358, effective May 31, 2005; 333-136669, effective August 16, 2006, 333-151185, effective May 23, 2008, 333-151187, effective May 23, 2008, 333-163010, effective November 9, 2009, 333-176064, effective August 4, 2011, 333-188776, effective May 22, 2013, and 333-198021, effective August 11, 2014), and on Form S-3 (File No. 333-195182 effective April 25, 2014).

/s/ GRANT THORNTON LLP

New York, New York

March 16, 2015

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John R. Buran, certify that:

1. I have reviewed this annual report on Form 10-K of Flushing Financial Corporation;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness  of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and

d) disclosed in this annual report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: March 16, 2015 By: /s/John R. Buran John R. Buran President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, David Fry, certify that:

1. I have reviewed this annual report on Form 10-K of Flushing Financial Corporation;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

3. Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness  of the disclosure controls and procedures, as of the end of the period covered by this annual report based on such evaluation; and

d) disclosed in this annual report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: March 16, 2015 By: /s/David Fry David Fry Senior Executive Vice President, Treasurer and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Flushing Financial Corporation (the “Corporation”) on Form 10-K for the year ending December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John R. Buran, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

     (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

By: /s/John R. Buran

John R. Buran

Chief Executive Officer

March 16, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Flushing Financial Corporation (the “Corporation”) on Form 10-K for the year ending December 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David Fry, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

     (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

By: /s/David Fry

David Fry

Chief Financial Officer

March 16, 2015

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Schedule of Repurchase Agreements [Table Text Block]

	2014					2013
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Repurchase agreements - fixed rate:
Due in 2014	$	-		-	%	$	9,300		1.27	%
Due in 2016		38,000		1.92			68,000		3.27
Due in 2017		38,000		4.16			38,000		4.16
Due in 2020		40,000		3.45			40,000		3.45
Total repurchase agreements - fixed rate		116,000		3.18			155,300		3.41
FHLB-NY advances - fixed rate:
Due in 2014		-		-			89,500		0.63
Due in 2015		185,551		0.80			166,732		1.21
Due in 2016		315,847		1.15			331,062		1.20
Due in 2017		305,525		2.12			174,160		2.79
Due in 2018		74,798		1.29			65,798		1.24
Due in 2019		30,000		1.83			-		-
Total FHLB-NY advances - fixed rate		911,721		1.44			827,252		1.48
Junior subordinated debentures - adjustable rate
Due in 2037		28,771		5.96			29,570		5.67
Total borrowings	$	1,056,492		1.75	%	$	1,012,122		1.90	%

Schedule of Borrowings Which Have Call Provisions [Table Text Block]

	Amount		Rate			Maturity Date	Call Date
	(Dollars in thousands)
FHLB-NY advances - fixed rate	$	20,000		4.43	%	10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		30,000		4.60		10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		10,000		4.13		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.32		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.15		9/18/2017	3/18/2015
Repurchase agreements - fixed rate		20,000		2.20		7/12/2016	1/12/2015
Repurchase agreements - fixed rate		18,000		4.28		10/18/2017	1/20/2015
Repurchase agreements - fixed rate		18,000		1.60		4/19/2016	1/20/2015
Repurchase agreements - fixed rate		20,000		4.05		9/19/2017	3/19/2015
Repurchase agreements - fixed rate		10,000		3.08		8/1/2020	2/1/2016
Repurchase agreements - fixed rate		10,000		3.19		2/1/2020	2/1/2016
Repurchase agreements - fixed rate		20,000		3.76		8/1/2020	2/1/2016

Information Relating to Collateralized Repurchase Agreements [Table Text Block]

	2014			2013			2012
	(Dollars in thousands)
Book value of collateral	$	142,925		$	199,447		$	228,620
Estimated fair value of collateral		142,925			199,447			228,620
Average balance of outstanding agreements during the year		137,824			172,944			185,300
Maximum balance of outstanding agreements at a month end during the year		155,300			185,300			185,300
Average interest rate of outstanding agreements during the year (1)		5.37	%		3.42	%		3.62	%

Terms of Securities Issued By Trusts [Table Text Block]

	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

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Employee Benefit Trust (EBT) Shares (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Employee Benefit Trust (EBT) Shares [Abstract]
Shares owned by Employee Benefit Trust, balance	913,792	1,028,565
Market value of unallocated shares. (in Dollars)	$ 16,235,257	$ 18,915,494
Shares purchased	23,717	29,168
Shares released and allocated	(136,559)	(143,941)
Shares owned by Employee Benefit Trust, balance	800,950	913,792

XML

Note 3 - Loans (Details) - The Composition of Loans is as Follows (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 3,798,654	$ 3,423,008
Unearned loan fees and deferred costs, net	11,719	11,170
Total loans	3,810,373	3,434,178
Multi-Family Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,923,460	1,712,039
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	621,569	512,552
One-To-Four Family - Mixed-Use Property [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	573,779	595,751
One-To-Four Family - Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	187,572	193,726
Co-Operative Apartments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	9,835	10,137
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,286	4,247
Small Business Administration [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	7,134	7,792
Taxi Medallion [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	22,519	13,123
Commercial Business And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 447,500	$ 373,641

XML

Note 21 - Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

	2014												2013
	4th			3rd			2nd			1st			4th		3rd		2nd		1st
	(In thousands, except per share data)
Quarterly operating data:
Interest income	$	49,171		$	49,177		$	49,569		$	49,211		$	50,294	$	49,851	$	50,295	$	50,086
Interest expense		12,057			17,220			12,740			12,724			13,058		12,866		12,999		15,940
Net interest income		37,114			31,957			36,829			36,487			37,236		36,985		37,296		34,146
Provision (benefit) for loan losses		(3,192	)		(618	)		(1,092	)		(1,119	)		1,000		3,435		3,500		6,000
Other operating income		(576	)		7,123			1,986			1,710			1,064		945		2,199		5,348
Other operating expense		21,685			21,437			20,624			22,093			18,894		19,050		20,213		22,419
Income before income tax expense		18,045			18,261			19,283			17,223			18,406		15,445		15,782		11,075
Income tax expense		6,988			7,060			7,598			6,927			6,458		6,024		6,155		4,319
Net income	$	11,057		$	11,201		$	11,685		$	10,296		$	11,948	$	9,421	$	9,627	$	6,756
Basic earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Diluted earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Dividends per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.13	$	0.13	$	0.13	$	0.13
Average common shares outstanding for:
Basic earnings per share		29,343			29,772			30,059			29,984			29,762		29,773		30,213		30,449
Diluted earnings per share		29,366			29,796			30,090			30,022			29,802		29,805		30,235		30,481

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Note 15 - Commitments and Contingencies (Details) (USD $)	12 Months Ended			1 Months Ended	2 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2007	Jul. 31, 2007
Note 15 - Commitments and Contingencies (Details) [Line Items]
Loans and Leases Receivable, Commitments, Fixed Rates	$ 11,600,000
Loans and Leases Receivable, Commitments, Weighted Average Fixed Rate of Interest	4.20%
Loans and Leases Receivable, Commitments, Variable Rates	247,100,000
Loans and Leases Receivable, Commitments, Variable Rates, Weighted Average Rate	3.65%
Loan Commitments Expiration	90 days
Line of Credit, Maturity, Max	18 months
Operating Leases, Future Minimum Payments Due	53,803,000
Operating Leases, Rent Expense	3,800,000	3,700,000	3,700,000
Home Equity Line of Credit [Member]
Note 15 - Commitments and Contingencies (Details) [Line Items]
Loans and Leases Receivable, Commitments, Credit	190,400,000
Line of Credit, Maturity, Max	10 years
Letter of Credit Pledged as Collateral [Member]
Note 15 - Commitments and Contingencies (Details) [Line Items]
Deposit Liabilities, Collateral Issued, Financial Instruments	499,100,000
Capital Securities [Member] | Flushing Financial's Capital Trusts [Member]
Note 15 - Commitments and Contingencies (Details) [Line Items]
Proceeds from Issuance of Debt				20,600,000	61,900,000
New Corporate Lease Agreement in Uniondale, NY [Member]
Note 15 - Commitments and Contingencies (Details) [Line Items]
Area of Real Estate Property (in Square Feet)	90,000
Lessee Leasing Arrangements, Operating Leases, Term of Contract	12 years
Operating Leases, Future Minimum Payments Due	24,400,000
Mortgage Loans on Real Estate [Member]
Note 15 - Commitments and Contingencies (Details) [Line Items]
Loans and Leases Receivable, Commitments, Credit	$ 68,300,000

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Note 6 - Debt and Equity Securities (Details) (USD $)	12 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2015	Mar. 31, 2014
Note 6 - Debt and Equity Securities (Details) [Line Items]
Private Issue Collateralized Mortgage Obligations, Number	3
Mortgage Backed Securities Available For Sale, Amortized Cost (in Dollars)	$ 702,530,000
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)		1,419,000	3,138,000
Texas Ratio, Minimum Review Threshold	50.00%
Corporate Debt Securities [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	5
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)		0
Municipal [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	3	33
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	0	0
Single Issuer Trust Preferred Security [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Trust Preferred Securities [Member] | Private Issues [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Fair Value Inputs, Probability of Default	0.00%
Trust Preferred Securities [Member] | Single Issuer [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1	1
Fair Value Inputs, Probability of Default	25.00%
Trust Preferred Securities [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)		0
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number Of Instruments, OTTI Charge Recorded	3
Proceeds from Sale of Available-for-sale Securities (in Dollars)	11,100,000
Available-for-sale Securities, Gross Realized Losses (in Dollars)	2,300,000
REMIC And CMO [Member] | FHLMC [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	7
REMIC And CMO [Member] | FNMA [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	14
REMIC And CMO [Member] | GNMA [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	8
REMIC And CMO [Member] | Private Issues [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)		1,400,000	800,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number Of Instruments, OTTI Charge Recorded		4	5
REMIC And CMO [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	0
Collateralized Mortgage Backed Securities [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	0
Collateralized Mortgage Obligations [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Proceeds from Sale of Available-for-sale Securities (in Dollars)		18,300,000
Available-for-sale Securities, Gross Realized Losses (in Dollars)		1,700,000
GNMA [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	0
FNMA [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	13
FHLMC [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Pooled Trust Preferred Securities [Member] | Scenario, Forecast [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Discounted Cash Flow Analysis, Significant Assumptions, Issuers that Prepay, Number				2
Discounted Cash Flow Analysis, Significant Assumptions, Prepayment Amount (in Dollars)				21,500,000
Pooled Trust Preferred Securities [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions		2
Discounted Cash Flow Analysis, Significant Assumptions, Issuers that Prepay, Number					2
Discounted Cash Flow Analysis, Significant Assumptions, Prepayment Amount (in Dollars)					26,700,000
Trust Preferred Security Settled at Less than Amortized Cost [Member] | Single Issuer [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions		1
Pooled Trust Preferred Security Settled at Less than Amortized Cost [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions		2
Collateralized By Commercial Real Estate [Member] | Collateralized Mortgage Obligations [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Mortgage Backed Securities Available For Sale, Amortized Cost (in Dollars)	12,400,000	13,900,000
Collateralized Mortgage Obligations [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Private Issue Collateralized Mortgage Obligations, Number		2
FHLMC [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	0
FNMA [Member]
Note 6 - Debt and Equity Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities (in Dollars)	$ 0

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Note 17 - Related Party Transactions (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
Number of Related Party Loans	1
Due to Related Parties	$ 27,000
Related Party Transaction, Amounts of Transaction	$ 0

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Note 3 - Loans (Details) - Loans Modified and Classified as TDR (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Modifications [Line Items]
Number	0	6
Balance		$ 2,048
Multi-Family Residential [Member]
Financing Receivable, Modifications [Line Items]
Number		2
Balance		698
Commercial Real Estate Loans [Member]
Financing Receivable, Modifications [Line Items]
Number		1
Balance		273
One-To-Four Family - Mixed-Use Property [Member]
Financing Receivable, Modifications [Line Items]
Number		1
Balance		390
Commercial Business And Other [Member]
Financing Receivable, Modifications [Line Items]
Number		2
Balance		$ 687

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Note 8 - Deposits (Details) - Total Deposits and the Weighted Average Rate on Deposits (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Interest-bearing deposits:
Certificate of deposit accounts	$ 1,305,823	$ 1,120,955
Certificate of deposit accounts	1.65%
Savings accounts	261,942	265,003
Savings accounts	0.38%
Money market accounts	290,263	199,907
Money market accounts	0.32%
NOW accounts	1,359,057	1,416,774
NOW accounts	0.45%
Total interest-bearing deposits	3,217,085	3,002,639
Non-interest bearing demand deposits	255,834	197,343
Total due to depositors	3,472,919	3,199,982
Mortgagors' escrow deposits	35,679	32,798
Mortgagors' escrow deposits	0.09%
Total deposits	$ 3,508,598	$ 3,232,780

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Retirement Plan’s Weighted Average Asset Allocations (Retirement Plan [Member])	Dec. 31, 2014	Dec. 31, 2013
Equity Securities [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Retirement Plan’s Weighted Average Asset Allocations [Line Items]
Weighted average asset allocation	68.00%	69.00%
Debt Securities [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Retirement Plan’s Weighted Average Asset Allocations [Line Items]
Weighted average asset allocation	32.00%	31.00%

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Note 18 - Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Note 18 - Fair Value of Financial Instruments (Tables) [Line Items]

Fair Value, Option, Quantitative Disclosures [Table Text Block]

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at December 31,		at December 31,		For the year ended		For the year ended			For the year ended
Description	2014		2013		December 31, 2014		December 31, 2013			December 31, 2012
(Dollars in thousands)
Mortgage-backed securities	$	4,678	$	7,119	$	75	$	(725	)	$	(539	)
Other securities		27,915		30,163		598		241			796
Borrowed funds		28,771		29,570		802		(5,651	)		2,062
Net gain (loss) from fair value adjustments (1)					$	1,475	$	(6,135	)	$	2,319

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Securities available for sale
Mortgage-backed Securities	$	-	$	-	$	704,933	$	756,156	$	-	$	-	$	704,933	$	756,156
Other securities		-		-		245,768		237,476		22,609		24,158		268,377		261,634
Interest rate swaps		-		-		84		2,081		-		-		84		2,081
Total assets	$	-	$	-	$	950,785	$	995,713	$	22,609	$	24,158	$	973,394	$	1,019,871
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	28,771	$	29,570	$	28,771	$	29,570
Interest rate swaps		-		-		2,649		-		-		-		2,649		-
Total liabilities	$	-	$	-	$	2,649	$	-	$	28,771	$	29,570	$	31,420	$	29,570

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Municipals			Trust preferred securities			Junior subordinated debentures
	(In thousands)
Beginning balance	$	9,223		$	14,935		$	29,570
Purchases		7,595			-			-
Principal repayments		(214	)		-			-
Maturities		(1,085	)		-			-
Sales		-			(11,133	)		-
Net gain from fair value adjustment of financial assets		-			71			-
Net gain from fair value adjustment of financial liabilities		-			-			(801	)
Increase in accrued interest payable		-			-			2
Change in unrealized gains included in other comprehensive income		-			3,217			-
Ending balance	$	15,519		$	7,090		$	28,771
Changes in unrealized held at period end	$	-		$	3,217		$	-

	For the year ended  December 31, 2013
	REMIC and CMO			Municipals			Trust preferred securities		Junior subordinated debentures
	(In thousands)
Beginning balance	$	23,475		$	9,429		$	6,650	$	23,922
Transfer into Level 3		-			-			6,126		-
Principal repayments		(5,036	)		(206	)		-		-
Sales		(19,973	)		-			-		-
Net gain from fair value adjustment of financial assets		-			-			884		-
Net loss from fair value adjustment of financial liabilities		-			-			-		5,651
Decrease in accrued interest payable		-			-			-		(3	)
Other-than-temporary impairment charge		(1,419	)		-			-		-
Change in unrealized gains (losses) included in other comprehensive income		2,953			-			1,275		-
Ending balance	$	-		$	9,223		$	14,935	$	29,570
Changes in unrealized held at period end	$	-		$	-		$	1,275	$	-

Fair Value Measurements, Nonrecurring [Table Text Block]

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Loans held for sale	$	-	$	-	$	-	$	-	$	-	$	425	$	-	$	425
Impaired loans		-		-		-		-		22,174		23,544		22,174		23,544
Other real estate owned		-		-		-		-		6,326		2,985		6,326		2,985
Total assets	$	-	$	-	$	-	$	-	$	28,500	$	26,954	$	28,500	$	26,954

Fair Value, by Balance Sheet Grouping [Table Text Block]

	December 31, 2014
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	34,265	$	34,265	$	34,265	$	-	$	-
Mortgage-backed Securities		704,933		704,933		-		704,933		-
Other securities		268,377		268,377		-		245,768		22,609
Loans		3,810,373		3,871,087		-		-		3,871,087
FHLB-NY stock		46,924		46,924		-		46,924		-
Interest rate swaps		84		84		-		84		-
OREO		6,326		6,326		-		-		6,326
Total assets	$	4,871,282	$	4,931,996	$	34,265	$	997,709	$	3,900,022
Liabilities:
Deposits	$	3,508,598	$	3,524,123	$	2,202,775	$	1,321,348	$	-
Borrowings		1,056,492		1,070,428		-		1,041,657		28,771
Interest rate swaps		2,649		2,649		-		2,649		-
Total liabilities	$	4,567,739	$	4,597,200	$	2,202,775	$	2,365,654	$	28,771

	December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	33,485	$	33,485	$	33,485	$	-	$	-
Mortgage-backed Securities		756,156		756,156		-		756,156		-
Other securities		261,634		261,634		-		237,476		24,158
Loans held for sale		425		425		-		-		425
Loans		3,434,178		3,502,792		-		-		3,502,792
FHLB-NY stock		46,025		46,025		-		46,025		-
Interest rate caps		-		-		-		-		-
Interest rate swaps		2,081		2,081		-		2,081		-
OREO		2,985		2,985		-		-		2,985
Total assets	$	4,536,969	$	4,605,583	$	33,485	$	1,041,738	$	3,530,360
Liabilities:
Deposits	$	3,232,780	$	3,253,261	$	2,111,825	$	1,141,436	$	-
Borrowings		1,012,122		1,034,799		-		1,005,229		29,570
Total liabilities	$	4,244,902	$	4,288,060	$	2,111,825	$	2,146,665	$	29,570

Fair Value, Measurements, Recurring [Member]

Note 18 - Fair Value of Financial Instruments (Tables) [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Municipals	$	15,519	Discounted cash flows	Discount rate	0.2%	-	4.0%	(2.3%)
Trust Preferred Securities	$	7,090	Discounted cash flows	Discount rate	7.0%	-	7.25%	(7.2%)
Liabilities:
Junior subordinated debentures	$	28,771	Discounted cash flows	Discount rate		7.0%		(7.0%)

Fair Value, Measurements, Nonrecurring [Member]

Note 18 - Fair Value of Financial Instruments (Tables) [Line Items]

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Impaired loans	$	6,981	Income  approach	Capitalization rate	7.3%	to	8.5%	(7.8%)
				Loss severity discount	0.5%	to	81.7%	(21.3%)
Impaired loans	$	6,935	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-41.5%	to	40.0%	(-2.2%)
				Loss severity discount	1.8%	to	89.4%	(20.0%)
Impaired loans	$	8,258	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-55.0%	to	25.0%	(-6.1%)
				Capitalization rate	5.8%	to	11.0%	(8.0%)
				Loss severity discount	0.9%	to	74.4%	(30.0%)
Other real estate owned	$	4,768	Income  approach	Capitalization rate	9.0%	to	12.0%	(9.1%)
				Loss severity discount	0.9%	to	4.9%	(1.0%)
Other real estate owned	$	587	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-11.9%	to	15.0%	(-3.5%)
				Loss severity discount	0.0%	to	36.9%	(9.6%)
Other real estate owned	$	971	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-25.0%	to	0.0%	(-8.9%)
				Capitalization rate	7.5%	to	8.0%	(7.7%)
				Loss severity discount	0.0%	to	6.2%	(3.0%)

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Note 3 - Loans (Tables)

12 Months Ended

Dec. 31, 2014

Note 3 - Loans (Tables) [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	2014		2013
	(In thousands)
Multi-family residential	$	1,923,460	$	1,712,039
Commercial real estate		621,569		512,552
One-to-four family ― mixed-use property		573,779		595,751
One-to-four family ― residential		187,572		193,726
Co-operative apartments		9,835		10,137
Construction		5,286		4,247
Small Business Administration		7,134		7,792
Taxi medallion		22,519		13,123
Commercial business and other		447,500		373,641
Gross loans		3,798,654		3,423,008
Unearned loan fees and deferred costs, net		11,719		11,170
Total loans	$	3,810,373	$	3,434,178

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	For the year ended December 31, 2013
(Dollars in thousands)	Number		Balance		Modification description
Multi-family residential		2	$	698	Received a below market interest rate and the loan amortization was extended
Commercial real estate		1		273	Received a below market interest rate and the loan amortization was extended
One-to-four family - mixed-use property		1		390	Received a below market interest rate and the loan amortization was extended
Commercial business and other		2		687	Received a below market interest rate and the loan amortization was extended
Total		6	$	2,048

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

	At December 31,
(In thousands)	2014		2013
Loans ninety days or more past due and still accruing:
Multi-family residential	$	676	$	52
Commercial real estate		820		-
One-to-four family mixed-use property		405		-
One-to-four family residential		14		15
Commercial Business and other		386		539
Total		2,301		606
Non-accrual mortgage loans:
Multi-family residential		6,878		13,297
Commercial real estate		5,689		9,962
One-to-four family mixed-use property		6,936		9,063
One-to-four family residential		11,244		13,250
Co-operative apartments		-		57
Total		30,747		45,629
Non-accrual non-mortgage loans:
Commercial Business and other		1,143		2,348
Total		1,143		2,348
Total non-accrual loans		31,890		47,977
Total non-accrual loans and ninety days or more past due and still accruing	$	34,191	$	48,583

Schedule of Interest Foregone On Non-Accrual and TDR Loans [Table Text Block]

	2014		2013		2012
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	2,919	$	4,656	$	9,026
Less: Interest income included in the results of operations		796		1,213		1,692
Total foregone interest	$	2,123	$	3,443	$	7,334

Past Due Financing Receivables [Table Text Block]

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	7,721	$	1,729	$	7,554	$	17,004	$	1,906,456	$	1,923,460
Commercial real estate		1,612		1,903		6,510		10,025		611,544		621,569
One-to-four family - mixed-use property		10,408		1,154		7,341		18,903		554,876		573,779
One-to-four family - residential		1,751		2,244		11,051		15,046		172,526		187,572
Co-operative apartments		-		-		-		-		9,835		9,835
Construction loans		3,000		-		-		3,000		2,286		5,286
Small Business Administration		90		-		-		90		7,044		7,134
Taxi medallion		-		-		-		-		22,519		22,519
Commercial business and other		6		1,585		740		2,331		445,169		447,500
Total	$	24,588	$	8,615	$	33,196	$	66,399	$	3,732,255	$	3,798,654

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	14,101	$	3,684	$	13,349	$	31,134	$	1,680,905	$	1,712,039
Commercial real estate		5,029		7,699		9,962		22,690		489,862		512,552
One-to-four family - mixed-use property		14,017		1,099		9,063		24,179		571,572		595,751
One-to-four family - residential		3,828		518		12,968		17,314		176,412		193,726
Co-operative apartments		99		-		144		243		9,894		10,137
Construction loans		-		-		-		-		4,247		4,247
Small Business Administration		106		-		-		106		7,686		7,792
Taxi medallion		-		-		-		-		13,123		13,123
Commercial business and other		187		2		1,752		1,941		371,700		373,641
Total	$	37,367	$	13,002	$	47,238	$	97,607	$	3,325,401	$	3,423,008

Allowance for Credit Losses on Financing Receivables [Table Text Block]

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-	$	5,320		$	31,776
Charge-off's		(1,161	)		(325	)		(423	)		(103	)		-			-			(49	)		-		(381	)		(2,442	)
Recoveries		150			481			608			269			7			-			92			-		176			1,783
Provision (benefit)		(2,246	)		(913	)		(673	)		(555	)		(111	)		(402	)		(222	)		11		(910	)		(6,021	)
Ending balance	$	8,827		$	4,202		$	5,840		$	1,690		$	-		$	42		$	279		$	11	$	4,205		$	25,096
Ending balance: individually evaluated for impairment	$	286		$	21		$	579		$	54		$	-		$	-		$	-		$	-	$	154		$	1,094
Ending balance: collectively evaluated for impairment	$	8,541		$	4,181		$	5,261		$	1,636		$	-		$	42		$	279		$	11	$	4,051		$	24,002
Financing Receivables:
Ending balance	$	1,923,460		$	621,569		$	573,779		$	187,572		$	9,835		$	5,286		$	7,134		$	22,519	$	447,500		$	3,798,654
Ending balance: individually evaluated for impairment	$	13,260		$	9,473		$	15,120		$	13,170		$	-		$	-		$	-		$	-	$	5,492		$	56,515
Ending balance: collectively evaluated for impairment	$	1,910,200		$	612,096		$	558,659		$	174,402		$	9,835		$	5,286		$	7,134		$	22,519	$	442,008		$	3,742,139

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	13,001		$	5,705		$	5,960		$	1,999		$	46		$	66		$	505		$	7		$	3,815		$	31,104
Charge-off's		(3,585	)		(1,051	)		(4,206	)		(701	)		(108	)		(2,678	)		(457	)		-			(2,057	)		(14,843	)
Recoveries		541			324			266			272			4			-			87			-			86			1,580
Provision (benefit)		2,127			(19	)		4,308			509			162			3,056			323			(7	)		3,476			13,935
Ending balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-		$	5,320		$	31,776
Ending balance: individually evaluated for impairment	$	312		$	164		$	875		$	58		$	-		$	17		$	-		$	-		$	222		$	1,648
Ending balance: collectively evaluated for impairment	$	11,772		$	4,795		$	5,453		$	2,021		$	104		$	427		$	458		$	-		$	5,098		$	30,128
Financing Receivables:
Ending balance	$	1,712,039		$	512,552		$	595,751		$	193,726		$	10,137		$	4,247		$	7,792		$	13,123		$	373,641		$	3,423,008
Ending balance: individually evaluated for impairment	$	21,757		$	19,757		$	16,939		$	14,390		$	59		$	746		$	-		$	-		$	8,120		$	81,768
Ending balance: collectively evaluated for impairment	$	1,690,282		$	492,795		$	578,812		$	179,336		$	10,078		$	3,501		$	7,792		$	13,123		$	365,521		$	3,341,240

Impaired Financing Receivables [Table Text Block]

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	10,481	$	11,551	$	-	$	14,168	$	194
Commercial real estate		7,100		7,221		-		11,329		51
One-to-four family mixed-use property		12,027		13,381		-		12,852		321
One-to-four family residential		12,816		15,709		-		13,015		103
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		285		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,779		3,149		-		3,428		137
Total loans with no related allowance recorded		45,203		51,011		-		55,077		806
With an allowance recorded:
Mortgage loans:
Multi-family residential		2,779		2,779		286		2,936		149
Commercial real estate		2,373		2,373		21		3,242		167
One-to-four family mixed-use property		3,093		3,093		579		3,249		170
One-to-four family residential		354		354		54		358		14
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		187		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,713		2,713		154		3,149		115
Total loans with an allowance recorded		11,312		11,312		1,094		13,121		615
Total Impaired Loans:
Total mortgage loans	$	51,023	$	56,461	$	940	$	61,621	$	1,169
Total non-mortgage loans	$	5,492	$	5,862	$	154	$	6,577	$	252

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	18,709	$	20,931	$	-	$	22,091	$	402
Commercial real estate		16,721		17,405		-		19,846		266
One-to-four family mixed-use property		12,748		15,256		-		13,916		319
One-to-four family residential		14,026		17,527		-		14,529		125
Co-operative apartments		59		147		-		189		-
Construction		-		118		-		4,014		-
Non-mortgage loans:
Small Business Administration		-		-		-		247		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		3,225		5,527		-		5,309		268
Total loans with no related allowance recorded		65,488		76,911		-		80,141		1,380
With an allowance recorded:
Mortgage loans:
Multi-family residential		3,048		3,049		312		2,892		170
Commercial real estate		3,036		3,102		164		6,388		194
One-to-four family mixed-use property		4,191		4,221		875		4,041		228
One-to-four family residential		364		364		58		368		15
Co-operative apartments		-		-		-		-		-
Construction		746		746		17		1,929		18
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		4,895		4,894		222		4,354		239
Total loans with an allowance recorded		16,280		16,376		1,648		19,972		864
Total Impaired Loans:
Total mortgage loans	$	73,648	$	82,866	$	1,426	$	90,203	$	1,737
Total non-mortgage loans	$	8,120	$	10,421	$	222	$	9,910	$	507

Financing Receivable Credit Quality Indicators [Table Text Block]

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	6,494	$	10,226	$	-	$	-	$	16,720
Commercial real estate		5,453		7,100		-		-		12,553
One-to-four family - mixed-use property		5,254		12,499		-		-		17,753
One-to-four family - residential		2,352		13,056		-		-		15,408
Co-operative apartments		623		-		-		-		623
Construction loans		-		-		-		-		-
Small Business Administration		479		-		-		-		479
Commercial business and other		2,841		3,779		-		-		6,620
Total loans	$	23,496	$	46,660	$	-	$	-	$	70,156

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	9,940	$	19,089	$	-	$	-	$	29,029
Commercial real estate		13,503		16,820		-		-		30,323
One-to-four family - mixed-use property		7,992		14,898		-		-		22,890
One-to-four family - residential		2,848		14,026		-		-		16,874
Co-operative apartments		-		59		-		-		59
Construction loans		746		-		-		-		746
Small Business Administration		310		-		-		-		310
Commercial business and other		7,314		8,450		50		-		15,814
Total loans	$	42,653	$	73,342	$	50	$	-	$	116,045

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	31,776		$	31,104		$	30,344
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Charge-offs		(2,442	)		(14,843	)		(21,269	)
Recoveries		1,783			1,580			1,029
Balance, end of year	$	25,096		$	31,776		$	31,104

Schedule Of Net Loan Charge-Offs [Table Text Block]

	2014			2013		2012
	(In thousands)
Multi-family residential	$	1,011		$	3,044	$	5,872
Commercial real estate		(156	)		727		2,439
One-to-four family ― mixed-use property		(185	)		3,940		3,928
One-to-four family ― residential		(166	)		429		1,554
Co-operative apartments		(7	)		104		62
Construction		-			2,678		4,591
Small Business Administration		(43	)		370		237
Commercial business and other		205			1,971		1,557
Total net loan charge-offs	$	659		$	13,263	$	20,240

Performing According to Restructured Terms [Member]

Note 3 - Loans (Tables) [Line Items]

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		10	$	3,034		10	$	3,087
Commercial real estate		3		2,373		3		2,407
One-to-four family - mixed-use property		7		2,381		8		2,692
One-to-four family - residential		1		354		1		364
Construction		-		-		1		746
Commercial business and other		4		2,249		5		4,406
Total performing troubled debt restructured		25	$	10,391		28	$	13,702

Not Performing To Restructured Terms [Member]

Note 3 - Loans (Tables) [Line Items]

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Commercial real estate		1	$	2,252		1	$	2,332
One-to-four family - mixed-use property		1		187		-		-
Total troubled debt restructurings that subsequently defaulted		2	$	2,439		1	$	2,332

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Note 8 - Deposits (Details) - Interest Expense on Deposits (USD $) In Thousands, unless otherwise specified	3 Months Ended			12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Interest Expense on Deposits [Abstract]
Certificate of deposit accounts	$ 22,420	$ 24,414	$ 32,983
Savings accounts	597	515	689
Money market accounts	667	294	399
NOW accounts	6,227	6,777	6,275
Total due to depositors	29,911	32,000	40,346
Mortgagors' escrow deposits	133	37	36
Total interest expense on deposits	$ 30,044	$ 32,037	$ 40,382	$ 30,044	$ 32,037	$ 40,382

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Note 13 - Stockholders' Equity (Details) - Components of Accumulated Other Comprehensive Loss and Changes During the Year: (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	$ (11,375)	$ 12,137
Other comprehensive income before reclassifications, net of tax	9,758	(23,280)
Amounts reclassified from accumulated other comprehensive income, net of tax	(1,290)	(232)
Net current period other comprehensive income, net of tax	8,468	(23,512)
Ending balance, net of tax	(2,907)	(11,375)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	(8,522)	18,921
Other comprehensive income before reclassifications, net of tax	13,548	(26,541)
Amounts reclassified from accumulated other comprehensive income, net of tax	(1,634)	(902)
Net current period other comprehensive income, net of tax	11,914	(27,443)
Ending balance, net of tax	3,392	(8,522)
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, net of tax	(2,853)	(6,784)
Other comprehensive income before reclassifications, net of tax	(3,790)	3,261
Amounts reclassified from accumulated other comprehensive income, net of tax	344	670
Net current period other comprehensive income, net of tax	(3,446)	3,931
Ending balance, net of tax	$ (6,299)	$ (2,853)

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Note 18 - Fair Value of Financial Instruments (Details) - Assets and Liabilities Carried at Fair Value on a Recurring Basis, and the Method Used to Determine Their Fair Value (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Securities available for sale
Assets	$ 973,394	$ 1,019,871
Liabilities	31,420	29,570
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale
Assets	704,933	756,156
Collateralized Mortgage Backed Securities [Member]
Securities available for sale
Assets	704,933	756,156
Other Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale
Assets	245,768	237,476
Other Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Securities available for sale
Assets	22,609	24,158
Other Securities [Member]
Securities available for sale
Assets	268,377	261,634
Interest Rate Swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale
Assets	84	2,081
Liabilities	2,649
Interest Rate Swaps [Member]
Securities available for sale
Assets	84	2,081
Liabilities	2,649
Borrowings [Member] | Fair Value, Inputs, Level 3 [Member]
Securities available for sale
Liabilities	28,771	29,570
Borrowings [Member]
Securities available for sale
Liabilities	28,771	29,570
Fair Value, Inputs, Level 2 [Member]
Securities available for sale
Assets	950,785	995,713
Liabilities	2,649
Fair Value, Inputs, Level 3 [Member]
Securities available for sale
Assets	22,609	24,158
Liabilities	$ 28,771	$ 29,570

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Note 18 - Fair Value of Financial Instruments (Details) - Carrying Amounts and Estimated Fair Values of Selected Financial Instruments as Well as Assumptions Used in Estimating Fair Value (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Assets:
Carrying Amount, Assets	$ 5,077,013	$ 4,721,501
Liabilities:
Carrying Amount, Liabilities	4,620,766	4,288,969
Borrowings [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities:
Fair Value, Liabilities	1,041,657	1,005,229
Borrowings [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities:
Fair Value, Liabilities	28,771	29,570
Borrowings [Member]
Liabilities:
Carrying Amount, Liabilities	1,056,492	1,012,122
Fair Value, Liabilities	1,070,428	1,034,799
Interest Rate Swaps [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities:
Fair Value, Liabilities	2,649
Interest Rate Swaps [Member]
Liabilities:
Carrying Amount, Liabilities	2,649
Fair Value, Liabilities	2,649
Total Liabilities - Financial Instruments [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities:
Fair Value, Liabilities	2,202,775	2,111,825
Total Liabilities - Financial Instruments [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities:
Fair Value, Liabilities	2,365,654	2,146,665
Total Liabilities - Financial Instruments [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities:
Fair Value, Liabilities	28,771	29,570
Total Liabilities - Financial Instruments [Member]
Liabilities:
Carrying Amount, Liabilities	4,567,739	4,244,902
Fair Value, Liabilities	4,597,200	4,288,060
Deposits [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities:
Fair Value, Liabilities	2,202,775	2,111,825
Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities:
Fair Value, Liabilities	1,321,348	1,141,436
Deposits [Member]
Liabilities:
Carrying Amount, Liabilities	3,508,598	3,232,780
Fair Value, Liabilities	3,524,123	3,253,261
Fair Value, Inputs, Level 1 [Member] | Cash And Due From Banks [Member]
Assets:
Fair Value, Assets	34,265	33,485
Fair Value, Inputs, Level 1 [Member] | Total Assets - Financial Instruments [Member]
Assets:
Fair Value, Assets	34,265	33,485
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member]
Assets:
Fair Value, Assets	704,933	756,156
Fair Value, Inputs, Level 2 [Member] | Other Securities [Member]
Assets:
Fair Value, Assets	245,768	237,476
Fair Value, Inputs, Level 2 [Member] | FHLB - NY Stock [Member]
Assets:
Fair Value, Assets	46,924	46,025
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swaps [Member]
Assets:
Fair Value, Assets	84	2,081
Fair Value, Inputs, Level 2 [Member] | Total Assets - Financial Instruments [Member]
Assets:
Fair Value, Assets	997,709	1,041,738
Fair Value, Inputs, Level 3 [Member] | Other Securities [Member]
Assets:
Fair Value, Assets	22,609	24,158
Fair Value, Inputs, Level 3 [Member] | Loans [Member]
Assets:
Fair Value, Assets	3,871,087	3,502,792
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member]
Assets:
Fair Value, Assets	6,326	2,985
Fair Value, Inputs, Level 3 [Member] | Total Assets - Financial Instruments [Member]
Assets:
Fair Value, Assets	3,900,022	3,530,360
Fair Value, Inputs, Level 3 [Member] | Loans Held For Sale [Member]
Assets:
Fair Value, Assets		425
Cash And Due From Banks [Member]
Assets:
Carrying Amount, Assets	34,265	33,485
Fair Value, Assets	34,265	33,485
Collateralized Mortgage Backed Securities [Member]
Assets:
Carrying Amount, Assets	704,933	756,156
Fair Value, Assets	704,933	756,156
Other Securities [Member]
Assets:
Carrying Amount, Assets	268,377	261,634
Fair Value, Assets	268,377	261,634
Loans [Member]
Assets:
Carrying Amount, Assets	3,810,373	3,434,178
Fair Value, Assets	3,871,087	3,502,792
FHLB - NY Stock [Member]
Assets:
Carrying Amount, Assets	46,924	46,025
Fair Value, Assets	46,924	46,025
Interest Rate Swaps [Member]
Assets:
Carrying Amount, Assets	84	2,081
Fair Value, Assets	84	2,081
Other Real Estate Owned [Member]
Assets:
Carrying Amount, Assets	6,326	2,985
Fair Value, Assets	6,326	2,985
Total Assets - Financial Instruments [Member]
Assets:
Carrying Amount, Assets	4,871,282	4,536,969
Fair Value, Assets	4,931,996	4,605,583
Loans Held For Sale [Member]
Assets:
Carrying Amount, Assets		425
Fair Value, Assets		$ 425

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Note 6 - Debt and Equity Securities (Details) - Credit Loss Component Recognized in Earnings on Debt Securities for Which a Portion of OTTI Was Recognized in AOCI (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Credit Loss Component Recognized in Earnings on Debt Securities for Which a Portion of OTTI Was Recognized in AOCI [Abstract]
Balance	$ 3,738	$ 6,178	$ 6,922
Recognition of actual losses		(842)	(1,271)
OTTI charges due to credit loss recorded in earnings		1,419	776
Securities sold during the period	(3,738)	(3,017)	(249)
Balance		$ 3,738	$ 6,178

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Note 10 - Income Taxes (Details) - Components of the Income Taxes Attributable to Income from Operations and Changes in Equity (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Components of the Income Taxes Attributable to Income from Operations and Changes in Equity [Abstract]
Income from operations	$ 28,573	$ 22,956	$ 21,847
Equity:
Change in fair value of securities available for sale	9,200	(21,309)	5,577
Current year actuarial gains (losses) of postretirement plans	(2,880)	2,527	(340)
Amortization of net actuarial losses and prior service credits	(311)	521	436
Compensation expense for tax purposes in (excess) or less than that recognized for financial reporting purposes	(846)	(443)	303
Total income taxes	$ 33,736	$ 4,252	$ 27,823

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Note 3 - Loans (Details) - Troubled Debt Restructurings That Are Not Performing According to Their Restructured Terms (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Modifications [Line Items]
Number of contracts	2	1
Recorded investment	$ 2,439	$ 2,332
Commercial Real Estate Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	1	1
Recorded investment	2,252	2,332
One-To-Four Family - Mixed-Use Property [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	1
Recorded investment	$ 187

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Develop Periodic Postretirement Expense for the Postretirement Plans	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assumptions Used to Develop Periodic Postretirement Expense for the Postretirement Plans [Abstract]
Rate of return on plan assets
Discount rate	4.60%	3.75%	4.25%
Rate of increase in health care costs
Initial	9.00%	10.00%	10.50%
Ultimate (year 2018)	5.00%	5.00%	5.50%
Annual rate of salary increase for life insurance

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Note 19 - Derivative Financial Instruments (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Note 19 - Derivative Financial Instruments (Details) [Line Items]
Junior Subordinated Notes	$ 61,900,000
Derivative Asset, Notional Amount	50,792,000	129,217,000
Not Designated as Hedging Instrument [Member]
Note 19 - Derivative Financial Instruments (Details) [Line Items]
Derivative Asset, Notional Amount	36,300,000	118,000,000
Designated as Hedging Instrument [Member]
Note 19 - Derivative Financial Instruments (Details) [Line Items]
Derivative Asset, Notional Amount	14,500,000	11,200,000
Floating Rate Junior Subordinated Debentures [Member]
Note 19 - Derivative Financial Instruments (Details) [Line Items]
Derivative, Amount of Hedged Item	$ 18,000,000

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Note 7 - Bank Premises and Equipment, Net (Details) - Bank Premises and Equipment (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Bank premises and equipment, gross	$ 48,465	$ 44,234
Less: Accumulated depreciation and amortization	26,597	23,878
Bank premises and equipment, net	21,868	20,356
Land [Member]
Property, Plant and Equipment [Line Items]
Bank premises and equipment, gross	3,551	3,551
Building and leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Bank premises and equipment, gross	25,717	22,464
Equipment and furniture [Member]
Property, Plant and Equipment [Line Items]
Bank premises and equipment, gross	$ 19,197	$ 18,219

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Note 10 - Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	39.20%	37.80%	38.90%
Deferred Tax Assets, Net of Valuation Allowance	$ 29,800,000
Deferred Tax Liabilities, Gross	22,489,000	19,613,000
Deferred Tax Assets, Valuation Allowance	$ 0	$ 0

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended	1 Months Ended	2 Months Ended
	Dec. 31, 2014	Jun. 30, 2007	Jul. 31, 2007	Dec. 31, 2013
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate	1.44%			1.48%
Advances Outstanding, Collateral Agreement, Collateralized Percentage	110.00%
Capital Securities [Member] | Flushing Financial Capital Trust III [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Proceeds from Issuance of Debt		$ 20.6
Capital Securities [Member] | Flushing Financial Capital Trust II [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Proceeds from Issuance of Debt		20.6
Capital Securities [Member] | Flushing Financial's Capital Trusts [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Proceeds from Issuance of Debt		20.6	61.9
Federal Home Loan Bank of New York [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Repayment and Penalties	66.9
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate	2.98%
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase	(30.0)
Securities Sold Under Agreements to Repurchase Prepayments Weighted Average Interest Rate	4.98%
Prepayment Penalty on Advances and Repurchases	5.2
Prepayment Penalty on Advances	2.7
Securities Sold Under Agreements to Repurchase Excluding Prepayments Weighted Average Interest Rate	3.40%

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Note 10 - Income Taxes (Details) - Income Tax Provisions (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Federal:
Current									$ 18,052	$ 17,808	$ 17,330
Deferred									2,860	(464)	(590)
Total federal tax provision									20,912	17,344	16,740
State and Local:
Current									6,369	5,828	5,321
Deferred									1,292	(216)	(214)
Total state and local tax provision									7,661	5,612	5,107
Total income tax provision	$ 6,988	$ 7,060	$ 7,598	$ 6,927	$ 6,458	$ 6,024	$ 6,155	$ 4,319	$ 28,573	$ 22,956	$ 21,847

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Note 8 - Deposits (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Note 8 - Deposits (Details) [Line Items]
Interest-bearing Domestic Deposit, Brokered	$ 763,900,000	$ 517,400,000
Time Deposits, $250,000 or More	109,600,000	75,600,000
Deposits	3,508,598,000	3,232,780,000
ICS Deposits [Member] | Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposits	94,000,000
Collateralized Deposits [Member] | Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposits	797,900,000
Securities Pledged as Collateral [Member] | Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposit Liabilities, Collateral Issued, Financial Instruments	379,300,000	407,400,000
Letter of Credit Pledged as Collateral [Member] | Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposit Liabilities, Collateral Issued, Financial Instruments	499,100,000	517,800,000
Letter of Credit Pledged as Collateral [Member]
Note 8 - Deposits (Details) [Line Items]
Deposit Liabilities, Collateral Issued, Financial Instruments	499,100,000
Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposits		867,100,000
Denomination [Member]
Note 8 - Deposits (Details) [Line Items]
Interest-bearing Domestic Deposit, Brokered	1,000.00	1,000.00
Government Deposits [Member]
Note 8 - Deposits (Details) [Line Items]
Deposits	$ 891,900,000

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Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	$ 967,329	$ 1,032,924
Fair Value	973,310	1,017,790
Gross Unrealized Gains	13,240	13,709
Gross Unrealized Losses	7,259	28,843
Corporate Debt Securities [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	90,719	100,362
Fair Value	91,273	101,711
Gross Unrealized Gains	1,268	2,316
Gross Unrealized Losses	714	967
Municipal [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	145,864	127,967
Fair Value	148,896	123,423
Gross Unrealized Gains	3,093	93
Gross Unrealized Losses	61	4,637
Mutual Funds [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	21,118	21,565
Fair Value	21,118	21,565
Other Debt Obligations [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	7,098	18,160
Fair Value	7,090	14,935
Gross Unrealized Losses	8	3,225
Available For Sale Securities, Excluding Mortgage-Backed Securities [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	264,799	268,054
Fair Value	268,377	261,634
Gross Unrealized Gains	4,361	2,409
Gross Unrealized Losses	783	8,829
REMIC And CMO [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	504,207	494,984
Fair Value	505,768	489,670
Gross Unrealized Gains	6,188	6,516
Gross Unrealized Losses	4,627	11,830
GNMA [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	13,862	38,974
Fair Value	14,159	40,874
Gross Unrealized Gains	421	2,325
Gross Unrealized Losses	124	425
FNMA [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	169,956	217,615
Fair Value	170,367	212,322
Gross Unrealized Gains	2,128	2,233
Gross Unrealized Losses	1,717	7,526
FHLMC [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	14,505	13,297
Fair Value	14,639	13,290
Gross Unrealized Gains	142	226
Gross Unrealized Losses	8	233
Collateralized Mortgage Obligations [Member]
Note 6 - Debt and Equity Securities (Details) - Amortized Cost and Fair Value of Securities Available For Sale [Line Items]
Amortized Cost	702,530	764,870
Fair Value	704,933	756,156
Gross Unrealized Gains	8,879	11,300
Gross Unrealized Losses	$ 6,476	$ 20,014

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Note 17 - Related Party Transactions

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

17. Related Party Transactions

At December 31, 2014, one loan for $27,000 was outstanding to an executive officer of the Company. This loan was made in the ordinary course of business and was fully approved in accordance with all of the Company’s credit underwriting standards and was made at market rates of interest and other normal terms but with reduced origination fees. No such loans were made during 2014. The Company believes that such loans do not involve more than the normal risk of collectability or present other unfavorable features.

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Note 22 - Parent Company Only Financial Information (Details) - Condensed Statements of Cash Flows for the Holding Company: (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating activities:
Net income	$ 44,239	$ 37,752	$ 34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Net gain on sale of securities	(2,875)	(3,021)	(47)
Deferred income tax (benefit) provision	4,154	(682)	(804)
Fair value adjustments for financial assets and financial liabilities	2,568	2,521	(55)
Stock based compensation expense	4,263	3,412	3,260
Net cash provided by operating activities	57,376	74,435	71,097
Investing activities:
Purchases of securities available for sale	(162,830)	(458,596)	(311,654)
Proceeds from sales and calls of securities available for sale	115,294	194,009	12,637
Net cash provided by (used in) investing activities	(339,576)	(326,024)	(197,988)
Financing activities:
Purchase of treasury stock	(18,872)	(14,151)	(5,551)
Cash dividends paid	(17,852)	(15,618)	(15,817)
Stock options exercised	565	533	885
Net cash used in financing activities	282,980	244,649	111,595
Net (decrease) increase in cash and cash equivalents	780	(6,940)	(15,296)
Cash and cash equivalents, beginning of year	33,485	40,425	55,721
Cash and cash equivalents, end of year	34,265	33,485	40,425
Holding Company [Member]
Operating activities:
Net income	44,239	37,752	34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank	(24,105)	(21,450)	(14,835)
Net gain on sale of securities		(17)
Deferred income tax (benefit) provision	17	(2,348)	858
Fair value adjustments for financial assets and financial liabilities	(779)	5,475	(1,991)
Stock based compensation expense	4,246	3,068	3,105
Net change in operating assets and liabilities	2,088	1,746	1,287
Net cash provided by operating activities	25,706	24,226	22,755
Investing activities:
Purchases of securities available for sale	(22)	(23)	(29)
Proceeds from sales and calls of securities available for sale	1,699	517
Net cash provided by (used in) investing activities	1,677	494	(29)
Financing activities:
Purchase of treasury stock	(18,872)	(14,151)	(5,622)
Cash dividends paid	(17,852)	(15,618)	(15,817)
Stock options exercised	565	533	956
Net cash used in financing activities	(36,159)	(29,236)	(20,483)
Net (decrease) increase in cash and cash equivalents	(8,776)	(4,516)	2,243
Cash and cash equivalents, beginning of year	16,525	21,041	18,798
Cash and cash equivalents, end of year	$ 7,749	$ 16,525	$ 21,041

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Note 1 - Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
Number of Merged Entities	2

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Note 12 - Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

	Net Actuarial loss (gain)									Prior Service cost (credit)									Total
	2014			2013			2012			2014			2013			2012			2014			2013			2012
	(In thousands)
Employee Retirement Plan	$	9,938		$	5,899		$	11,843		$	-		$	-		$	-		$	9,938		$	5,899		$	11,843
Other Postretirement Benefit Plans		2,130			205			1,199			(623	)		(708	)		(794	)		1,507			(503	)		405
Outside Directors Plan		(488	)		(496	)		(409	)		131			171			210			(357	)		(325	)		(199	)
Total	$	11,580		$	5,608		$	12,633		$	(492	)	$	(537	)	$	(584	)	$	11,088		$	5,071		$	12,049

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]

	Net Actuarial loss (gain)			Prior Service cost (credit)			Total
	(In thousands)
Employee Retirement Plan	$	1,162		$	-		$	1,162
Other Postretirement Benefit Plans		119			(85	)		34
Outside Directors Plan		(56	)		40			(16	)
	$	1,225		$	(45	)	$	1,180

Schedule of Assumptions Used [Table Text Block]

	2014			2013
Rate of return on plan assets		n/a			n/a
Discount rate		3.76	%		4.60	%
Rate of increase in health care costs
Initial		8.00	%		9.00	%
Ultimate (year 2018)		5.00	%		5.00	%
Annual rate of salary increase for life insurance		n/a			n/a

Schedule of Net Benefit Costs [Table Text Block]

	2014			2013			2012
	(In thousands)
Service cost	$	358		$	449		$	400
Interest cost		253			219			217
Amortization of unrecognized loss		-			50			40
Amortization of past service credit		(85	)		(85	)		(85	)
Net postretirement benefit expense		526			633			572
Current year actuarial (gain) loss		1,925			(943	)		211
Amortization of actuarial gain		-			(50	)		(40	)
Amortization of prior service credit		85			85			85
Total recognized in other comprehensive income		2,010			(908	)		256
Total recognized in net postretirement expense and other comprehensive income	$	2,536		$	(275	)	$	828

Schedule of Allocation of Plan Assets [Table Text Block]

	2014			2013
Equity securities		68	%		69	%
Debt securities		32	%		31	%

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,832	$	-	$	4,832	$	-
U.S. large-cap value (b)		4,939		-		4,939		-
U.S. small-cap blend (c)		2,163		-		2,163		-
International blend (d)		1,966		-		1,966		-
Bond fund (e)		6,274		-		6,274		-
Prudential short term (f)		335		-		335		-
Total	$	20,509	$	-	$	20,509	$	-

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,609	$	-	$	4,609	$	-
U.S. large-cap value (b)		4,625		-		4,625		-
U.S. small-cap blend (c)		2,536		-		2,536		-
International blend (d)		2,336		-		2,336		-
Bond fund (e)		5,993		-		5,993		-
Prudential short term (f)		397		-		397		-
Total	$	20,496	$	-	$	20,496	$	-

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]

	Increase		Decrease
	(In thousands)
Effect on postretirement benefit obligation	$	1,682	$	(1,271	)
Effect on total service and interest cost		187		(137	)

Schedule of Employee Benefit Trust Shares [Table Text Block]

	2014			2013
Shares owned by Employee Benefit Trust, beginning balance		913,792			1,028,565
Shares purchased		23,717			29,168
Shares released and allocated		(136,559	)		(143,941	)
Shares owned by Employee Benefit Trust, ending balance		800,950			913,792
Market value of unallocated shares.	$	16,235,257		$	18,915,494

Retirement Plan [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Net Funded Status [Table Text Block]

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	19,740		$	22,531
Service cost		-			-
Interest cost		891			827
Actuarial (gains) loss		4,446			(2,485	)
Benefits paid		(980	)		(1,133	)
Projected benefit obligation at end of year		24,097			19,740
Change in plan assets:
Market value of assets at beginning of year		20,496			17,300
Actual return on plan assets		993			3,498
Employer contributions		-			831
Benefits paid		(980	)		(1,133	)
Market value of plan assets at end of year		20,509			20,496
Accrued pension (liability) prepaid included in other (liabilities) assets	$	(3,588	)	$	756

Schedule of Net Benefit Costs [Table Text Block]

	2014			2013			2012
	(In thousands)
Service cost	$	-		$	-		$	-
Interest cost		891			827			879
Amortization of unrecognized loss		759			1,222			1,032
Expected return on plan assets		(1,344	)		(1,261	)		(1,257	)
Net pension expense (benefit)		306			788			654
Current year actuarial (gain) loss		4,798			(4,722	)		652
Amortization of actuarial loss		(759	)		(1,222	)		(1,032	)
Total recognized in other comprehensive income		4,039			(5,944	)		(380	)
Total recognized in net pension cost (benefit) and other comprehensive income	$	4,345		$	(5,156	)	$	274

Schedule of Expected Benefit Payments [Table Text Block]

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	181
2016		208
2017		232
2018		254
2019		272
2020 - 2024		1,509

Assumptions for the Retirment Plan's Benefit Obligations [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Assumptions Used [Table Text Block]

	2014			2013
Weighted average discount rate		3.76	%		4.60	%
Rate of increase in future compensation levels		n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%

Assumptions For Periodic Pension Benefit for the Retirement Plan [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Assumptions Used [Table Text Block]

	2014			2013			2012
Weighted average discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%		7.50	%

Postretirement Plans [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Net Funded Status [Table Text Block]

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	5,586		$	5,927
Service cost		358			449
Interest cost		253			219
Actuarial loss (gain)		1,925			(943	)
Benefits paid		(49	)		(66	)
Projected benefit obligation at end of year		8,073			5,586
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		49			66
Benefits paid		(49	)		(66	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(8,073	)	$	(5,586	)

Schedule of Assumptions Used [Table Text Block]

	2014			2013			2012
Rate of return on plan assets		n/a			n/a			n/a
Discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in health care costs
Initial		9.00	%		10.00	%		10.50	%
Ultimate (year 2018)		5.00	%		5.00	%		5.50	%
Annual rate of salary increase for life insurance		n/a			n/a			n/a

Schedule of Expected Benefit Payments [Table Text Block]

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	1,094
2016		1,145
2017		1,161
2018		1,161
2019		1,181
2020 – 2024		6,490

Directors' Plan [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Net Funded Status [Table Text Block]

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	2,666		$	2,706
Service cost		54			82
Interest cost		116			98
Actuarial gain		(53	)		(122	)
Benefits paid		(120	)		(98	)
Projected benefit obligation at end of year		2,663			2,666
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		120			98
Benefits paid		(120	)		(98	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(2,663	)	$	(2,666	)

Schedule of Net Benefit Costs [Table Text Block]

	2014			2013			2012
	(In thousands)
Service cost	$	54		$	82		$	80
Interest cost		116			98			110
Amortization of unrecognized gain		(60	)		(36	)		(29	)
Amortization of past service liability		40			40			40
Net pension expense		150			184			201
Current actuarial gain		(52	)		(122	)		(44	)
Amortization of actuarial gain		60			36			29
Amortization of prior service cost		(40	)		(40	)		(40	)
Total recognized in other comprehensive income		(32	)		(126	)		(55	)
Total recognized in net pension expense and other comprehensive income	$	118		$	58		$	146

Schedule of Expected Benefit Payments [Table Text Block]

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	288
2016		288
2017		288
2018		272
2019		288
2020 – 2024		1,336

Assumptions Used to Determine Benefit Obligations and Periodic Pension Expense for the Directors' Plan [Member]

Note 12 - Pension and Other Postretirement Benefit Plans (Tables) [Line Items]

Schedule of Assumptions Used [Table Text Block]

	2014			2013			2012
Weighted average discount rate for the benefit obligation		3.76	%		4.60	%		3.75	%
Weighted average discount rate for periodic pension benefit expense		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a

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Note 6 - Debt and Equity Securities (Details) - Gross Gains and Gross Losses Realized From the Sale of Securities (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Gross Gains and Gross Losses Realized From the Sale of Securities [Abstract]
Gross gains from the sale of securities	$ 5,247	$ 5,222	$ 154
Gross losses from the sale of securities	(2,372)	(2,201)	(107)
Net gains from the sale of securities	$ 2,875	$ 3,021	$ 47

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts Recognized in Accumulated Other Comprehensive Income, on a Pre-Tax Basis (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts Recognized in Accumulated Other Comprehensive Income, on a Pre-Tax Basis [Line Items]
Net Actuarial loss (gain)	$ 11,580	$ 5,608	$ 12,633
Prior Service cost (credit)	(492)	(537)	(584)
Total	11,088	5,071	12,049
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts Recognized in Accumulated Other Comprehensive Income, on a Pre-Tax Basis [Line Items]
Net Actuarial loss (gain)	9,938	5,899	11,843
Total	9,938	5,899	11,843
Other Postretirement Benefit Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts Recognized in Accumulated Other Comprehensive Income, on a Pre-Tax Basis [Line Items]
Net Actuarial loss (gain)	2,130	205	1,199
Prior Service cost (credit)	(623)	(708)	(794)
Total	1,507	(503)	405
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts Recognized in Accumulated Other Comprehensive Income, on a Pre-Tax Basis [Line Items]
Net Actuarial loss (gain)	(488)	(496)	(409)
Prior Service cost (credit)	131	171	210
Total	$ (357)	$ (325)	$ (199)

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Note 7 - Bank Premises and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	2014		2013
	(In thousands)
Land	$	3,551	$	3,551
Building and leasehold improvements		25,717		22,464
Equipment and furniture		19,197		18,219
Total		48,465		44,234
Less: Accumulated depreciation and amortization		26,597		23,878
Bank premises and equipment, net	$	21,868	$	20,356

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Note 2 - Summary of Significant Accounting Policies (Details) - Earnings Per Common Share: (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Common Share: [Abstract]
Net income, as reported (in Dollars)	$ 11,057	$ 11,201	$ 11,685	$ 10,296	$ 11,948	$ 9,421	$ 9,627	$ 6,756	$ 44,239	$ 37,752	$ 34,331
Divided by:
Weighted average common shares outstanding	29,343	29,772	30,059	29,984	29,762	29,773	30,213	30,449	29,788	30,047	30,402
Weighted average common stock equivalents									29	26	31
Total weighted average common shares outstanding and common stock equivalents	29,366	29,796	30,090	30,022	29,802	29,805	30,235	30,481	29,817	30,073	30,433
Basic earnings per common share (in Dollars per share)	$ 0.38	$ 0.38	$ 0.39	$ 0.34	$ 0.40	$ 0.32	$ 0.32	$ 0.22	$ 1.49	$ 1.26	$ 1.13
Diluted earnings per common share (in Dollars per share)	$ 0.38	$ 0.38	$ 0.39	$ 0.34	$ 0.40	$ 0.32	$ 0.32	$ 0.22	$ 1.48	$ 1.26	$ 1.13
Dividend Payout ratio									40.30%	41.30%	46.00%

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Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold	34	72	77
Proceeds	$ 15,857	$ 33,401	$ 44,223
Net charge-offs	357	(4,703)	(5,666)
Net gain (loss)	67	53	(38)
Multi-Family Residential [Member]
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold	12	21	34
Proceeds	5,759	11,420	21,429
Net charge-offs	(80)	(1,024)	(2,974)
Net gain (loss)	9	99	(46)
Commercial Real Estate Loans [Member]
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold	6	9	11
Proceeds	4,635	5,488	5,869
Net charge-offs	295	(703)	(572)
Net gain (loss)	8	6
One-To-Four Family - Mixed-Use Property [Member]
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold	14	39	25
Proceeds	5,399	11,427	8,270
Net charge-offs	122	(2,791)	(1,927)
Net gain (loss)	50	(52)
Commercial Business And Other [Member]
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold	2	1	4
Proceeds	64		6,115
Net charge-offs	20	(21)	(136)
Net gain (loss)			8
Construction [Member]
Note 4 - Loans Held for Sale (Details) - Delinquent and Non-Performing Loans Sold During the Period [Line Items]
Loans sold		2	3
Proceeds		5,066	2,540
Net charge-offs		$ (164)	$ (57)

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments, Which Reflect Expected Future Service, Are Expected to be Paid by the Retirement Plan (Postretirement Plans [Member], USD $)	Dec. 31, 2014
Postretirement Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments, Which Reflect Expected Future Service, Are Expected to be Paid by the Retirement Plan [Line Items]
2015	$ 181,000
2016	208,000
2017	232,000
2018	254,000
2019	272,000
2020 - 2024	$ 1,509,000

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Note 3 - Loans (Details) - Activity in the Allowance for Loan Losses (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for credit losses:
Allowance for credit losses - balance	$ 31,776	$ 31,104	$ 30,344
Allowance for credit losses - balance	25,096	31,776	31,104
Ending balance: individually evaluated for impairment	1,094	1,648
Ending balance: collectively evaluated for impairment	24,002	30,128
Charge-off's	(2,442)	(14,843)	(21,269)
Recoveries	1,783	1,580	1,029
Provision	(6,021)	13,935
Financing Receivables:
Ending balance	3,798,654	3,423,008
Ending balance: individually evaluated for impairment	56,515	81,768
Ending balance: collectively evaluated for impairment	3,742,139	3,341,240
Multi-Family Residential [Member]
Allowance for credit losses:
Allowance for credit losses - balance	12,084	13,001
Allowance for credit losses - balance	8,827	12,084
Ending balance: individually evaluated for impairment	286	312
Ending balance: collectively evaluated for impairment	8,541	11,772
Charge-off's	(1,161)	(3,585)
Recoveries	150	541
Provision	(2,246)	2,127
Financing Receivables:
Ending balance	1,923,460	1,712,039
Ending balance: individually evaluated for impairment	13,260	21,757
Ending balance: collectively evaluated for impairment	1,910,200	1,690,282
Commercial Real Estate Loans [Member]
Allowance for credit losses:
Allowance for credit losses - balance	4,959	5,705
Allowance for credit losses - balance	4,202	4,959
Ending balance: individually evaluated for impairment	21	164
Ending balance: collectively evaluated for impairment	4,181	4,795
Charge-off's	(325)	(1,051)
Recoveries	481	324
Provision	(913)	(19)
Financing Receivables:
Ending balance	621,569	512,552
Ending balance: individually evaluated for impairment	9,473	19,757
Ending balance: collectively evaluated for impairment	612,096	492,795
One-To-Four Family - Mixed-Use Property [Member]
Allowance for credit losses:
Allowance for credit losses - balance	6,328	5,960
Allowance for credit losses - balance	5,840	6,328
Ending balance: individually evaluated for impairment	579	875
Ending balance: collectively evaluated for impairment	5,261	5,453
Charge-off's	(423)	(4,206)
Recoveries	608	266
Provision	(673)	4,308
Financing Receivables:
Ending balance	573,779	595,751
Ending balance: individually evaluated for impairment	15,120	16,939
Ending balance: collectively evaluated for impairment	558,659	578,812
One-To-Four Family - Residential [Member]
Allowance for credit losses:
Allowance for credit losses - balance	2,079	1,999
Allowance for credit losses - balance	1,690	2,079
Ending balance: individually evaluated for impairment	54	58
Ending balance: collectively evaluated for impairment	1,636	2,021
Charge-off's	(103)	(701)
Recoveries	269	272
Provision	(555)	509
Financing Receivables:
Ending balance	187,572	193,726
Ending balance: individually evaluated for impairment	13,170	14,390
Ending balance: collectively evaluated for impairment	174,402	179,336
Co-Operative Apartments [Member]
Allowance for credit losses:
Allowance for credit losses - balance	104	46
Allowance for credit losses - balance		104
Ending balance: collectively evaluated for impairment		104
Charge-off's		(108)
Recoveries	7	4
Provision	(111)	162
Financing Receivables:
Ending balance	9,835	10,137
Ending balance: individually evaluated for impairment		59
Ending balance: collectively evaluated for impairment	9,835	10,078
Construction [Member]
Allowance for credit losses:
Allowance for credit losses - balance	444	66
Allowance for credit losses - balance	42	444
Ending balance: individually evaluated for impairment		17
Ending balance: collectively evaluated for impairment	42	427
Charge-off's		(2,678)
Provision	(402)	3,056
Financing Receivables:
Ending balance	5,286	4,247
Ending balance: individually evaluated for impairment		746
Ending balance: collectively evaluated for impairment	5,286	3,501
Small Business Administration [Member]
Allowance for credit losses:
Allowance for credit losses - balance	458	505
Allowance for credit losses - balance	279	458
Ending balance: collectively evaluated for impairment	279	458
Charge-off's	(49)	(457)
Recoveries	92	87
Provision	(222)	323
Financing Receivables:
Ending balance	7,134	7,792
Ending balance: collectively evaluated for impairment	7,134	7,792
Taxi Medallion [Member]
Allowance for credit losses:
Allowance for credit losses - balance		7
Allowance for credit losses - balance	11
Ending balance: collectively evaluated for impairment	11
Provision	11	(7)
Financing Receivables:
Ending balance	22,519	13,123
Ending balance: collectively evaluated for impairment	22,519	13,123
Commercial Business And Other [Member]
Allowance for credit losses:
Allowance for credit losses - balance	5,320	3,815
Allowance for credit losses - balance	4,205	5,320
Ending balance: individually evaluated for impairment	154	222
Ending balance: collectively evaluated for impairment	4,051	5,098
Charge-off's	(381)	(2,057)
Recoveries	176	86
Provision	(910)	3,476
Financing Receivables:
Ending balance	447,500	373,641
Ending balance: individually evaluated for impairment	5,492	8,120
Ending balance: collectively evaluated for impairment	$ 442,008	$ 365,521

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Note 19 - Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

	At or for the year ended December 31, 2014
	Notional Amount		Net Carrying Value (1)
	(In thousands)
Interest rate swaps (non-hedge)	$	36,321	$	(2,239	)
Interest rate swaps (hedge)		4,131		84
Interest rate swaps (hedge)		10,340		(410	)
Total derivatives	$	50,792	$	(2,565	)

	At or for the year ended December 31, 2013
	Notional Amount		Purchase Price		Net Carrying Value (1)
	(In thousands)
Interest rate caps (non-hedge)	$	100,000	$	9,035	$	-
Interest rate swaps (non-hedge)		18,000		-		1,681
Interest rate swaps (hedge)		11,217		-		400
Total derivatives	$	129,217	$	9,035	$	2,081

Derivative Instruments, Gain (Loss) [Table Text Block]

	For the year ended December 31,
(In thousands)	2014			2013			2012
Financial Derivatives:
Interest rate caps (non-hedge)	$	-		$	(18	)	$	(337	)
Interest rate swaps (non-hedge)		(3,919	)		3,603			(1,927	)
Interest rate swaps (hedge)		(124	)		29			-
Net Gain (loss) (1)	$	(4,043	)	$	3,614		$	(2,264	)

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Note 1 - Nature of Operations

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Nature of Operations [Text Block]

1. Nature of Operations

Flushing Financial Corporation (the “Holding Company”), a Delaware business corporation, is a bank holding company. On February 28, 2013 the Holding Company’s wholly owned subsidiary Flushing Savings Bank, FSB (the “Savings Bank) merged with and into Flushing Commercial Bank (the “Merger”). Flushing Commercial Bank was the surviving entity of the Merger, whose name was changed to Flushing Bank (the “Bank”). The Holding Company and its direct and indirect wholly-owned subsidiaries, including the Bank, Flushing Preferred Funding Corporation, Flushing Service Corporation, and FSB Properties Inc., are collectively herein referred to as the “Company.”

The Merger was the result of the combination of two entities under common control, and in accordance with ASC 805-50-30-5, the Bank measured the recognized assets and liabilities transferred at their carrying amounts (historical cost) for this transaction.

The Company’s principal business is attracting retail deposits from the general public and investing those depositstogether with funds generated from ongoing operations and borrowings, primarily in (1) originations and purchases of multi-family residential properties, commercial business loans, commercial real estate mortgage loans and, to a lesser extent, one-to-four family (focusing on mixed-use properties, which are properties that contain both residential dwelling units and commercial units); (2) construction loans, primarily for residential properties; (3) Small Business Administration (“SBA”) loans and other small business loans;  (4) mortgage loan surrogates such as mortgage-backed securities; and (5) U.S. government securities, corporate fixed-income securities and other marketable securities. The Bank also originates certain other consumer loans including overdraft lines of credit. The Bank primarily conducts its business through seventeen full-service banking offices, nine of which are located in Queens County, two in Nassau County, five in Kings County (Brooklyn), and one in New York County (Manhattan), New York. The Bank also operates “iGObanking.com®”, an internet branch, offering checking, savings, money market and certificates of deposit accounts.

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Note 22 - Parent Company Only Financial Information (Details) - Condensed Statements of Financial Condition for the Holding Company: (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Condensed Balance Sheet Statements, Captions [Line Items]
Other securities, at fair value pursuant to fair value option	$ 27,915	$ 30,163
Treasury stock, shares	2,126,772	1,407,343
Holding Company [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Other securities, at fair value pursuant to fair value option	$ 864	$ 2,562
Treasury stock, shares	2,126,772	1,407,343

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments Under the Directors’ Plan, Which Reflect Expected Future Service, are Expected to be Paid (Directors' Plan [Member], USD $)	Dec. 31, 2014
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments Under the Directors’ Plan, Which Reflect Expected Future Service, are Expected to be Paid [Line Items]
2015	$ 288,000
2016	288,000
2017	288,000
2018	272,000
2019	288,000
2020 – 2024	$ 1,336,000

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Note 3 - Loans (Details) - Impaired Loans (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Mortgage loans:
Recorded Investment, With an allowance recorded	$ 11,312	$ 16,280
Unpaid Principal Balance, With an allowance recorded	11,312	16,376
Related Allowance, With an allowance recorded	1,094	1,648
Average Recorded Investment, With an allowance recorded	13,121	19,972
Interest Income Recognized, With an allowance recorded	615	864
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	56,500	81,800
Related Allowance, Total Impaired Loans	1,094	1,648
Average Recorded Investment, Total Impaired Loans	65,800	95,000
Multi-Family Residential [Member] | Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	10,481	18,709
Unpaid Principal Balance, With no related allowance recorded	11,551	20,931
Average Recorded Investment, With no related allowance recorded	14,168	22,091
Interest Income Recognized, With no related allowance recorded	194	402
Mortgage loans:
Recorded Investment, With an allowance recorded	2,779	3,048
Unpaid Principal Balance, With an allowance recorded	2,779	3,049
Related Allowance, With an allowance recorded	286	312
Average Recorded Investment, With an allowance recorded	2,936	2,892
Interest Income Recognized, With an allowance recorded	149	170
Total Impaired Loans:
Related Allowance, Total Impaired Loans	286	312
Multi-Family Residential [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	16,720	29,029
Commercial Real Estate Loans [Member] | Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	7,100	16,721
Unpaid Principal Balance, With no related allowance recorded	7,221	17,405
Average Recorded Investment, With no related allowance recorded	11,329	19,846
Interest Income Recognized, With no related allowance recorded	51	266
Mortgage loans:
Recorded Investment, With an allowance recorded	2,373	3,036
Unpaid Principal Balance, With an allowance recorded	2,373	3,102
Related Allowance, With an allowance recorded	21	164
Average Recorded Investment, With an allowance recorded	3,242	6,388
Interest Income Recognized, With an allowance recorded	167	194
Total Impaired Loans:
Related Allowance, Total Impaired Loans	21	164
Commercial Real Estate Loans [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	12,553	30,323
One-To-Four Family - Mixed-Use Property [Member] | Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	12,027	12,748
Unpaid Principal Balance, With no related allowance recorded	13,381	15,256
Average Recorded Investment, With no related allowance recorded	12,852	13,916
Interest Income Recognized, With no related allowance recorded	321	319
Mortgage loans:
Recorded Investment, With an allowance recorded	3,093	4,191
Unpaid Principal Balance, With an allowance recorded	3,093	4,221
Related Allowance, With an allowance recorded	579	875
Average Recorded Investment, With an allowance recorded	3,249	4,041
Interest Income Recognized, With an allowance recorded	170	228
Total Impaired Loans:
Related Allowance, Total Impaired Loans	579	875
One-To-Four Family - Mixed-Use Property [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	17,753	22,890
One-To-Four Family - Residential [Member] | Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	12,816	14,026
Unpaid Principal Balance, With no related allowance recorded	15,709	17,527
Average Recorded Investment, With no related allowance recorded	13,015	14,529
Interest Income Recognized, With no related allowance recorded	103	125
Mortgage loans:
Recorded Investment, With an allowance recorded	354	364
Unpaid Principal Balance, With an allowance recorded	354	364
Related Allowance, With an allowance recorded	54	58
Average Recorded Investment, With an allowance recorded	358	368
Interest Income Recognized, With an allowance recorded	14	15
Total Impaired Loans:
Related Allowance, Total Impaired Loans	54	58
One-To-Four Family - Residential [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	15,408	16,874
Co-Operative Apartments [Member] | Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded		59
Unpaid Principal Balance, With no related allowance recorded		147
Average Recorded Investment, With no related allowance recorded		189
Co-Operative Apartments [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	623	59
Construction [Member] | Mortgage Loans [Member]
Mortgage loans:
Unpaid Principal Balance, With no related allowance recorded		118
Average Recorded Investment, With no related allowance recorded	285	4,014
Mortgage loans:
Recorded Investment, With an allowance recorded		746
Unpaid Principal Balance, With an allowance recorded		746
Related Allowance, With an allowance recorded		17
Average Recorded Investment, With an allowance recorded	187	1,929
Interest Income Recognized, With an allowance recorded		18
Total Impaired Loans:
Related Allowance, Total Impaired Loans		17
Construction [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans		746
Small Business Administration [Member] | Non-Mortgage Loans [Member]
Mortgage loans:
Average Recorded Investment, With no related allowance recorded		247
Small Business Administration [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	479	310
Commercial Business And Other [Member] | Non-Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	2,779	3,225
Unpaid Principal Balance, With no related allowance recorded	3,149	5,527
Average Recorded Investment, With no related allowance recorded	3,428	5,309
Interest Income Recognized, With no related allowance recorded	137	268
Mortgage loans:
Recorded Investment, With an allowance recorded	2,713	4,895
Unpaid Principal Balance, With an allowance recorded	2,713	4,894
Related Allowance, With an allowance recorded	154	222
Average Recorded Investment, With an allowance recorded	3,149	4,354
Interest Income Recognized, With an allowance recorded	115	239
Total Impaired Loans:
Related Allowance, Total Impaired Loans	154	222
Commercial Business And Other [Member]
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	6,620	15,814
Mortgage Loans [Member]
Mortgage loans:
Related Allowance, With an allowance recorded	940	1,426
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	51,023	73,648
Unpaid Principal Balance, Total Impaired Loans	56,461	82,866
Related Allowance, Total Impaired Loans	940	1,426
Average Recorded Investment, Total Impaired Loans	61,621	90,203
Interest Income Recognized, Total Impaired Loans	1,169	1,737
Non-Mortgage Loans [Member]
Mortgage loans:
Recorded Investment, With no related allowance recorded	45,203	65,488
Unpaid Principal Balance, With no related allowance recorded	51,011	76,911
Average Recorded Investment, With no related allowance recorded	55,077	80,141
Interest Income Recognized, With no related allowance recorded	806	1,380
Mortgage loans:
Related Allowance, With an allowance recorded	154	222
Total Impaired Loans:
Recorded Investment, Total Impaired Loans	5,492	8,120
Unpaid Principal Balance, Total Impaired Loans	5,862	10,421
Related Allowance, Total Impaired Loans	154	222
Average Recorded Investment, Total Impaired Loans	6,577	9,910
Interest Income Recognized, Total Impaired Loans	$ 252	$ 507

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Note 18 - Fair Value of Financial Instruments (Details) - Assets and Liabilities Carried at Fair Value on a Recurring Basis, Classified Within Level 3 of the Valuation Hierarchy (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Municipal [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 9,223	$ 9,429
Purchases	7,595
Principal repayments	(214)	(206)
Maturities	(1,085)
Ending balance	15,519	9,223
Municipal [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	15,519
Trust Preferred Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	14,935	6,650
Sales	(11,133)
Net gain from fair value adjustment of financial assets	71	884
Change in unrealized gains included in other comprehensive income	3,217	1,275
Ending balance	7,090	14,935
Changes in unrealized held at period end	3,217	1,275
Trust Preferred Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	7,090
Junior Subordinated Debentures [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	29,570	23,922
Net gain from fair value adjustment of financial liabilities	(801)	5,651
Increase in accrued interest payable	2	(3)
Ending balance	28,771	29,570
Junior Subordinated Debentures [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	$ 28,771

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Note 19 - Derivative Financial Instruments (Details) - Effect of Derivative Instruments on the Consolidated Statements of Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Financial Derivatives	$ (4,043)	[1]	$ 3,614	[1]	$ (2,264)	[1]
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Financial Derivatives			(18)		(337)
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Financial Derivatives	(3,919)		3,603		(1,927)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Financial Derivatives	$ (124)		$ 29

[1] Net gains (losses) are recorded as "Net gain (losses) from fair value adjustments" in the Consolidated Statements of Income.

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Note 13 - Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

December 31, 2014	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)
Other comprehensive income before reclassifications, net of tax		13,548			(3,790	)		9,758
Amounts reclassified from accumulated other comprehensive income, net of tax		(1,634	)		344			(1,290	)
Net current period other comprehensive income, net of tax		11,914			(3,446	)		8,468
Ending balance, net of tax	$	3,392		$	(6,299	)	$	(2,907	)

December 31, 2013	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	18,921		$	(6,784	)	$	12,137
Other comprehensive income before reclassifications, net of tax		(26,541	)		3,261			(23,280	)
Amounts reclassified from accumulated other comprehensive income, net of tax		(902	)		670			(232	)
Net current period other comprehensive income, net of tax		(27,443	)		3,931			(23,512	)
Ending balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	2,875		Net gain on sale of securities
		(1,241	)	Tax expense
	$	1,634		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(700	) (1)	Other expense
Prior service credits		45	(1)	Other expense
		(655	)	Total before tax
		311		Tax benefit
	$	(344	)	Net of tax

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	3,021		Net gain on sale of securities
		(1,321	)	Tax expense
	$	1,700		Net of tax
OTTI charges	$	(1,419	)	OTTI charge
		621		Tax benefit
	$	(798	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(1,237	)(1)	Other expense
Prior service credits		46	(1)	Other expense
		(1,191	)	Total before tax
		521		Tax benefit
	$	(670	)	Net of tax

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Note 21 - Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

21. Quarterly Financial Data (unaudited)

Selected unaudited quarterly financial data for the fiscal years ended December 31, 2014 and 2013 is presented below:

	2014												2013
	4th			3rd			2nd			1st			4th		3rd		2nd		1st
	(In thousands, except per share data)
Quarterly operating data:
Interest income	$	49,171		$	49,177		$	49,569		$	49,211		$	50,294	$	49,851	$	50,295	$	50,086
Interest expense		12,057			17,220			12,740			12,724			13,058		12,866		12,999		15,940
Net interest income		37,114			31,957			36,829			36,487			37,236		36,985		37,296		34,146
Provision (benefit) for loan losses		(3,192	)		(618	)		(1,092	)		(1,119	)		1,000		3,435		3,500		6,000
Other operating income		(576	)		7,123			1,986			1,710			1,064		945		2,199		5,348
Other operating expense		21,685			21,437			20,624			22,093			18,894		19,050		20,213		22,419
Income before income tax expense		18,045			18,261			19,283			17,223			18,406		15,445		15,782		11,075
Income tax expense		6,988			7,060			7,598			6,927			6,458		6,024		6,155		4,319
Net income	$	11,057		$	11,201		$	11,685		$	10,296		$	11,948	$	9,421	$	9,627	$	6,756
Basic earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Diluted earnings per common share	$	0.38		$	0.38		$	0.39		$	0.34		$	0.40	$	0.32	$	0.32	$	0.22
Dividends per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.13	$	0.13	$	0.13	$	0.13
Average common shares outstanding for:
Basic earnings per share		29,343			29,772			30,059			29,984			29,762		29,773		30,213		30,449
Diluted earnings per share		29,366			29,796			30,090			30,022			29,802		29,805		30,235		30,481

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Note 20 - New Authoritative Accounting Pronouncements

12 Months Ended

Dec. 31, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

20. New Authoritative Accounting Pronouncements

 In January 2014, the FASB issued ASU 2014-04 to clarify that when an in substance repossession or  foreclosure occurs,  a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction.  ASU 2014- 04 is effective for annual reporting periods beginning after December 15, 2014.  Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. 

In May 2014, the FASB issued ASU 2014-09 which provides new guidance that supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition”. The guidance requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this new guidance on our consolidated results of operations and financial condition.

In June 2014, the FASB issued ASU 2014-11 which amends the authoritative accounting guidance under ASC Topic 860 “Transfers and Servicing.” The amendments require two accounting changes. First, the amendments change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement.  The amendments also require additional disclosures regarding repurchase agreements.  The amendments are effective for the first interim or annual period beginning after December 15, 2014. Entities are required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early adoption is prohibited. The amendments regarding disclosures for certain transactions accounted for as a sale are required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings are required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. We are currently evaluating the impact of adopting these amendments on our consolidated results of operations and financial condition.

In August 2014, the FASB issued ASU 2014-14 which amends the authoritative accounting guidance under ASC Topic 310 “Receivables.” The amendments require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the follow conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make claim on the guarantee, and the creditor has the ability to recover under that claim and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Entities should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition.

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Determine the Retirement Plan’s Benefit Obligations (Retirement Plan [Member])	Dec. 31, 2014	Dec. 31, 2013
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Determine the Retirement Plan’s Benefit Obligations [Line Items]
Weighted average discount rate	3.76%	4.60%
Rate of increase in future compensation levels
Expected long-term rate of return on assets	7.50%	7.50%

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Note 3 - Loans (Details) - Troubled Debt Restructurings That Are Performing According to Their Restructured Terms (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Modifications [Line Items]
Number of contracts	25	28
Recorded investment	$ 10,391	$ 13,702
Multi-Family Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	10	10
Recorded investment	3,034	3,087
Commercial Real Estate Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	3	3
Recorded investment	2,373	2,407
One-To-Four Family - Mixed-Use Property [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	7	8
Recorded investment	2,381	2,692
One-To-Four Family - Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	1	1
Recorded investment	354	364
Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts		1
Recorded investment		746
Commercial Business And Other [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts	4	5
Recorded investment	$ 2,249	$ 4,406

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Note 14 - Regulatory Capital (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	472,251		9.63	%	$	447,305		9.48	%
Requirement to be well capitalized		245,254		5.00			235,992		5.00
Excess		226,997		4.63			211,313		4.48
Tier I risk-based capital:
Capital level	$	472,251		13.87	%	$	447,305		14.59	%
Requirement to be well capitalized		204,354		6.00			183,944		6.00
Excess		267,897		7.87			263,361		8.59
Total risk-based capital:
Capital level	$	497,347		14.60	%	$	479,081		15.63	%
Requirement to be well capitalized		340,589		10.00			306,573		10.00
Excess		156,758		4.60			172,508		5.63

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	471,233		9.62	%	$	456,772		9.70	%
Requirement to be well capitalized		244,960		5.00			235,547		5.00
Excess		226,273		4.62			221,225		4.70
Tier I risk-based capital:
Capital level	$	471,233		13.87	%	$	456,772		14.93	%
Requirement to be well capitalized		203,878		6.00			183,579		6.00
Excess		267,355		7.87			273,193		8.93
Total risk-based capital:
Capital level	$	496,329		14.61	%	$	488,548		15.97	%
Requirement to be well capitalized		339,797		10.00			305,966		10.00
Excess		156,532		4.61			182,582		5.97

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Note 22 - Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Financial Statements [Text Block]

22. Parent Company Only Financial Information

Earnings of the Bank are recognized by the Holding Company using the equity method of accounting. Accordingly, earnings of the Bank are recorded as increases in the Holding Company’s investment, any dividends would reduce the Holding Company’s investment in the Bank, and any changes in the Bank’s unrealized gain or loss on securities available for sale, net of taxes, would increase or decrease, respectively, the Holding Company’s investment in the Bank.

The condensed financial statements for the Holding Company are presented below:

Condensed Statements of Financial Condition	December 31, 2014			December 31, 2013
	(Dollars in thousands)
Assets:
Cash and due from banks	$	7,749		$	16,525
Securities available for sale:
Other securities ($864 and $2,562 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		1,156			2,849
Interest receivable		4			4
Investment in subsidiaries		482,996			449,580
Goodwill		2,185			2,185
Other assets		4,402			4,354
Total assets	$	498,492		$	475,497
Liabilities:
Borrowings (at fair value pursuant to the fair value option at December 31, 2014 and 2013)	$	28,770		$	29,570
Other liabilities		13,475			13,395
Total liabilities		42,245			42,965
Stockholders' Equity:
Preferred stock		-			-
Common stock		315			315
Additional paid-in capital		206,437			201,902
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)		(37,221	)		(22,053	)
Retained earnings		289,623			263,743
Accumulated other comprehensive loss, net of taxes		(2,907	)		(11,375	)
Total equity		456,247			432,532
Total liabilities and equity	$	498,492		$	475,497

	For the years ended December 31,
Condensed Statements of Income	2014			2013			2012
	(In thousands)
Dividends from the Bank	$	20,000		$	20,000		$	20,000
Interest income		512			590			694
Interest expense		(1,039	)		(1,066	)		(2,957	)
Gain on sale of securities		-			17			-
Net gain (loss) from fair value adjustments		779			(5,475	)		1,991
Other operating expenses		(786	)		(621	)		(730	)
Income before taxes and equity in undistributed earnings of subsidiary		19,466			13,445			18,998
Income tax benefit		668			2,857			498
Income before equity in undistributed earnings of subsidiary		20,134			16,302			19,496
Equity in undistributed earnings of the Bank		24,105			21,450			14,835
Net income	$	44,239		$	37,752		$	34,331

	For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013			2012
	(In thousands)
Operating activities:
Net income	$	44,239		$	37,752		$	34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(24,105	)		(21,450	)		(14,835	)
Net gain on sale of securities		-			(17	)		-
Deferred income tax (benefit) provision		17			(2,348	)		858
Fair value adjustments for financial assets and financial liabilities		(779	)		5,475			(1,991	)
Stock based compensation expense		4,246			3,068			3,105
Net change in operating assets and liabilities		2,088			1,746			1,287
Net cash provided by operating activities		25,706			24,226			22,755
Investing activities:
Purchases of securities available for sale		(22	)		(23	)		(29	)
Proceeds from sales and calls of securities available for sale		1,699			517			-
Net cash provided by (used in) investing activities		1,677			494			(29	)
Financing activities:
Purchase of treasury stock		(18,872	)		(14,151	)		(5,622	)
Cash dividends paid		(17,852	)		(15,618	)		(15,817	)
Stock options exercised		565			533			956
Net cash used in  financing activities		(36,159	)		(29,236	)		(20,483	)
Net (decrease) increase in cash and cash equivalents		(8,776	)		(4,516	)		2,243
Cash and cash equivalents, beginning of year		16,525			21,041			18,798
Cash and cash equivalents, end of year	$	7,749		$	16,525		$	21,041

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Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation:

The accompanying consolidated financial statements include the accounts of the Holding Company and the following direct and indirect wholly-owned subsidiaries of the Holding Company: the Bank, Flushing Preferred Funding Corporation (“FPFC”), Flushing Service Corporation (“FSC”), and FSB Properties Inc. (“Properties”). FPFC is a real estate investment trust formed to hold a portion of the Bank’s mortgage loans to facilitate access to capital markets. FSC was formed to market insurance products and mutual funds. Properties is currently used to hold title to real estate owned that is obtained via foreclosure.  All intercompany transactions and accounts are eliminated in consolidation. The Holding Company currently has three unconsolidated subsidiaries in the form of wholly-owned statutory business trusts, which were formed to issue guaranteed capital debentures (“capital securities”). Please see Note 9, “Borrowed Funds and Securities Sold Under Agreements to Repurchase,” for additional information regarding these trusts.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for loan losses, the evaluation of goodwill for impairment, the review of the need for a valuation allowance of the Company’s deferred tax assets, the fair value of the investment portfolio and the evaluation of other-than-temporary impairment (“OTTI”) on securities. The current economic environment has increased the degree of uncertainty inherent in these material estimates.  Actual results could differ from these estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents:

For the purpose of reporting cash flows, the Company defines cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less as cash and cash equivalents. At December 31, 2014 and 2013, the Company’s cash and cash equivalents totaled $34.3 million and $33.5 million, respectively. Included in cash and cash equivalents at those dates were $23.0 million and $23.7 million in interest-earning deposits in other financial institutions, primarily consisting of balances due from the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York (“FHLB-NY”). The Bank is required to maintain cash reserves equal to a percentage of certain deposits. The reserve requirement totaled $7.5 million and $10.1 million at December 31, 2014 and 2013, respectively.

Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]

Securities Available for Sale:

Securities are classified as available for sale when management intends to hold the securities for an indefinite period of time or when the securities may be utilized for tactical asset/liability purposes and may be sold from time to time to effectively manage interest rate exposure and resultant prepayment risk and liquidity needs. Premiums and discounts are amortized or accreted, respectively, using the level-yield method. Realized gains and losses on the sales of securities are determined using the specific identification method. Unrealized gains and losses (other than unrealized losses considered other-than-temporary which are recognized in the Consolidated Statements of Income) on securities available for sale are excluded from earnings and reported as part of accumulated other comprehensive income, net of taxes. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the current interest rate environment, (3) the financial condition and near-term prospects of the issuer, if applicable, and (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Other-than-temporary impairment losses for debt securities are measured using a discounted cash flow model. Other-than-temporary impairment losses for equity securities are measured using quoted market prices, when available, or, when market quotes are not available due to an illiquid market, we use an impairment model from a third party or quotes from investment brokers.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill:

Goodwill is presumed to have an indefinite life and is tested annually, or when certain conditions are met, for impairment, rather than amortized. If the fair value of the reporting unit is greater than the goodwill amount, no further evaluation is required. If the fair value of the reporting unit is less than the goodwill amount, further evaluation would be required to compare the fair value of the reporting unit to the goodwill amount and determine if a write down is required.

The FASB issued ASU 2011-08, which gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test described in ASC 350. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required.

In performing the goodwill impairment testing, the Company has identified a single reporting unit. The Company performed the qualitative assessment as outlined in ASU 2011-08 in assessing the carrying value of goodwill as of December 31, 2014 and determined that there was no goodwill impairment. At December 31, 2014, the carrying amount of goodwill totaled $16.1 million. The identification of additional reporting units, the use of other valuation techniques and/or changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Loans:

Loans are reported at their principal outstanding balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Interest on loans is recognized on the accrual basis. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Subsequent cash payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Subsequent cash payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is unlikely to occur. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Loan Losses:

The Company maintains an allowance for loan losses at an amount, which, in management’s judgment, is adequate to absorb probable estimated losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance is established through a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of the Company’s  lenders, collection policies and experience, internal loan review function and other external factors.  Additionally, the Company segregated our loans into two portfolios based on year of origination. One portfolio was reviewed for loans originated after December 31, 2009 and a second portfolio for loans originated prior to January 1, 2010. Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during 2009. By the end of 2009, all loans were being underwritten based on revised and tightened underwriting standards.  Loans originated prior to 2010 have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to 2010 has a similar delinquency rate. The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately. All non-accrual loans are classified impaired. The Company’s Board of Directors reviews and approves management’s evaluation of the adequacy of the allowance for loan losses on a quarterly basis.

The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Increases and decreases in the allowance other than charge-offs and recoveries are included in the provision for loan losses. When a loan or a portion of a loan is determined to be uncollectible, the portion deemed uncollectible is charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.

The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due 90 days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Appraisals are obtained and/or updated internal evaluations are prepared as soon as practical, and before the loan becomes 90 days delinquent. The loan balances of collateral dependent impaired loans are compared to the property’s updated fair value. The Company considers fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off.  Management reviews the allowance for loan losses on a quarterly basis, and records as a provision the amount deemed appropriate, after considering items such as, current year charge-offs, charge-off trends, new loan production, current balance by particular loan categories, and delinquent loans by particular loan categories.

A loan is considered impaired when, based upon current information, the Company believes it is probable that it will be unable to collect all amounts due, both principal and interest, in accordance with the original terms of the loan. Impaired loans are measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or, as a practical expedient, the fair value of the collateral if the loan is collateral dependent. Interest income on impaired loans is recorded on the cash basis. The Company’s management considers all non-accrual loans impaired.

The Company reviews each impaired loan on an individual basis to determine if either a charge-off or a valuation allowance needs to be allocated to the loan. The Company does not charge-off or allocate a valuation allowance to loans for which management has concluded the current value of the underlying collateral will allow for recovery of the loan balance either through the sale of the loan or by foreclosure and sale of the property.

The Company evaluates the underlying collateral through a third party appraisal, or when a third party appraisal is not available, the Company will use an internal evaluation. The internal evaluations are prepared using an income approach or a sales approach. The income approach is used for income producing properties and uses current revenues less operating expenses to determine the net cash flow of the property. Once the net cash flow is determined, the value of the property is calculated using an appropriate capitalization rate for the property. The sales approach uses comparable sales prices in the market.  When an internal evaluation is used, we place greater reliance on the income approach to value the collateral.

In preparing internal evaluations of property values, the Company seeks to obtain current data on the subject property from various sources, including: (1) the borrower; (2) copies of existing leases; (3) local real estate brokers and appraisers; (4) public records (such as real estate taxes and water and sewer charges); (5) comparable sales and rental data in the market; (6) an inspection of the property and (7) interviews with tenants. These internal evaluations primarily focus on the income approach and comparable sales data to value the property.

As of December 31, 2014, we utilized recent third party appraisals of the collateral to measure impairment for $31.0 million, or 68.8%, of collateral dependent impaired loans, and used internal evaluations of the property’s value for $14.1 million, or 31.2%, of collateral dependent impaired loans.

The Company may restructure a loan to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as Troubled Debt Restructured (“TDR”).

These restructurings have not included a reduction of principal balance. The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. Restructured loans are classified as a TDR when the Bank grants a concession to a borrower who is experiencing financial difficulties. All loans classified as TDR are considered impaired, however TDR loans which have been current for six consecutive months at the time they are restructured as TDR remain on accrual status and are not included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-performing loans until they have made timely payments for six consecutive months. Loans that are restructured as TDR but are not performing in accordance with the restructured terms are placed on non-accrual status and reported as non-performing loans.

The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR which is collateral dependent, the fair value of the collateral. At December 31, 2014, there were no commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did not have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Loans Held for Sale:

Loans held for sale are carried at the lower of cost or estimated fair value. At December 31, 2014, there were no loans classified as held for sale. At December 31, 2013, loans held for sale consisted of one non-performing multi-family residential loan for $0.4 million.

Bank Owned Life Insurance, Policy [Policy Text Block]

Bank Owned Life Insurance:

Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. BOLI is carried in the consolidated statements of financial position at its cash surrender value. Increases in the cash value of the policies, as well as proceeds received, are recorded in other non-interest income, and are not subject to income taxes.

Real Estate, Policy [Policy Text Block]

Other Real Estate Owned:

Other real estate owned (“OREO”) consists of property acquired by foreclosure. These properties are carried at fair value. The fair value is based on appraised value through a current appraisal, or at times through an internal review, additionally adjusted by the estimated costs to sell the property.  This determination is made on an individual asset basis. If the fair value of a property is less than the carrying amount, the difference is recognized as a valuation allowance. Further decreases to the estimated value will be charged directly to expense.

Property, Plant and Equipment, Policy [Policy Text Block]

Bank Premises and Equipment:

Bank premises and equipment are stated at cost, less depreciation accumulated on a straight-line basis over the estimated useful lives of the related assets (3 to 40 years). Leasehold improvements are amortized on a straight-line basis over the term of the related leases or the lives of the assets, whichever is shorter. Maintenance, repairs and minor improvements are charged to non-interest expense in the period incurred.

Federal Home Loan Bank Stock, Policy [Policy Text Block]

Federal Home Loan Bank Stock:

The FHLB-NY has assigned to the Bank a mandated membership stock purchase, based on its asset size.  In addition, for all borrowing activity, the Bank is required to purchase shares of FHLB-NY non-marketable capital stock at par.  Such shares are redeemed by FHLB-NY at par with reductions in the Bank’s borrowing levels. The Bank carries its investment in FHLB-NY stock at historical cost. The Company periodically reviews its FHLB-NY stock to determine if impairment exists.  At December 31, 2014, the Company considered among other things the earnings performance, credit rating and asset quality of the FHLB-NY. Based on this review, the Company did not consider the value of our investment in FHLB-NY stock to be impaired at December 31, 2014.

Repurchase and Resale Agreements Policy [Policy Text Block]

Securities Sold Under Agreements to Repurchase:

Securities sold under agreements to repurchase are accounted for as collateralized financing and are carried at amounts at which the securities will be subsequently reacquired as specified in the respective agreements. Interest incurred under these agreements is included in other interest expense.

Income Tax, Policy [Policy Text Block]

Income Taxes:

Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between book and tax bases of the various balance sheet assets and liabilities. A deferred tax liability is recognized on all taxable temporary differences and a deferred tax asset is recognized on all deductible temporary differences and operating losses and tax credit carry-forwards.  A valuation allowance is recognized to reduce the potential deferred tax asset if it is “more likely than not” that all or some portion of that potential deferred tax asset will not be realized.  The Company must also take into account changes in tax laws or rates when valuing the deferred income tax amounts it carries on its Consolidated Statements of Financial Condition.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Compensation Plans:

The Company accounts for its stock based compensation in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 “Stock Compensation” which establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires a fair-value-based measurement method in accounting for share-based payment transactions with employees. It also requires measurement of the cost of employee services received in exchange for an award of an equity instrument based on the grant date fair value of the award.  That cost is recognized over the period during which an employee is required to provide service in exchange for the award. The requisite service period is usually the vesting period.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Benefit Plans:

The Company sponsors a qualified pension, 401(k), and profit sharing plan for its employees. The Company also sponsors postretirement health care and life insurance benefits plans for its employees, a non-qualified deferred compensation plan for officers who have achieved the level of at least senior vice president, and a non-qualified pension plan for its outside directors.

The Company recognizes the funded status of a benefit plan – measured as the difference between plan assets at fair value and the benefit obligation – in the statement of financial condition, with the unrecognized credits and charges recognized, net of taxes, as a component of accumulated other comprehensive income. These credits or charges arose as a result of gains or losses and prior service costs or credits that arose during prior periods but were not recognized as components of net periodic benefit cost.

Treasury Stock [Policy Text Block]

Treasury Stock:

The Company records treasury stock at cost. Treasury stock is reissued at average cost.

Derivatives, Policy [Policy Text Block]

Derivatives:

Derivatives are required to be recorded on the Consolidated Statements of Financial Condition at fair value. The Company records derivatives on a gross basis in “Other assets” and “Other liabilities” in the Consolidated Statements of Financial Condition.  The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued.

Segment Reporting, Policy [Policy Text Block]

Segment Reporting:

Management views the Company as operating as a single unit, a community bank. Therefore, segment information is not provided.

Advertising Costs, Policy [Policy Text Block]

Advertising Expense:

Costs associated with advertising are expensed as incurred. The Company recorded advertising expenses of $1.8 million, $1.9 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Common Share:

Earnings per share are computed in accordance with ASC Topic 260 “Earnings Per Share.” Basic earnings per common share is computed by dividing net income available to common shareholders by the total weighted average number of common shares outstanding, which includes unvested participating securities. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and as such are included in the calculation of earnings per share.  The Company’s unvested restricted stock and restricted stock unit awards are considered participating securities. Therefore, weighted average common shares outstanding used for computing basic earnings per common share includes common shares outstanding plus unvested restricted stock and restricted stock unit awards. The computation of diluted earnings per share includes the additional dilutive effect of stock options outstanding and other common stock equivalents during the period.  Common stock equivalents that are anti-dilutive are not included in the computation of diluted earnings per common share. The numerator for calculating basic and diluted earnings per common share is net income available to common shareholders. The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per common share.

Earnings per common share have been computed based on the following, for the years ended December 31:

	2014			2013			2012
	(In thousands, except per share data)
Net income, as reported	$	44,239		$	37,752		$	34,331
Divided by:
Weighted average common shares outstanding		29,788			30,047			30,402
Weighted average common stock equivalents		29			26			31
Total weighted average common shares outstanding and common stock equivalents		29,817			30,073			30,433
Basic earnings per common share	$	1.49		$	1.26		$	1.13
Diluted earnings per common share	$	1.48		$	1.26		$	1.13
Dividend Payout ratio		40.3	%		41.3	%		46.0	%

There were no options that were anti-dilutive for the year ended December 31, 2014. Options to purchase 151,900 shares, at an average exercise price of $18.55, and 550,400 shares, at an average exercise price of $17.63, are anti-dilutive and were not included in the computation of diluted earnings per common share for the years ended December 31, 2013 and 2012, respectively.

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating Activities
Net income	$ 44,239	$ 37,752	$ 34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (benefit) for loan losses	(6,021)	13,935	21,000
Depreciation and amortization of premises and equipment	2,813	2,953	3,207
Net loss on sales of loans held for sale		108	9
Net gain on sales of loans (including delinquent loans)	(67)	(284)	(31)
Net gain on sales of securities	(2,875)	(3,021)	(47)
Other-than-temporary impairment charge on securities		1,419	776
Amortization of premium, net of accretion of discount	7,292	7,588	6,643
Fair value adjustment for financial assets and financial liabilities	2,568	2,521	(55)
Income from bank owned life insurance	(3,050)	(3,363)	(2,790)
Stock based compensation expense	4,263	3,412	3,260
Deferred compensation	(2,514)	(790)	(86)
Amortization of core deposit intangibles		468	469
Excess tax provision (benefits) from stock-based payment arrangements	(846)	(443)	303
Deferred income tax provision (benefit)	4,154	(682)	(804)
Net decrease in prepaid FDIC assessment		3,287	3,888
(Decrease) increase in other assets	8,110	(1,410)	(3,695)
Increase (decrease) in other liabilities	(690)	10,985	4,719
Net cash provided by operating activities	57,376	74,435	71,097
Investing Activities
Purchases of premises and equipment	(4,325)	(809)	(1,290)
Net purchases of Federal Home Loan Bank-NY shares	(899)	(3,688)	(12,092)
Purchases of securities available for sale	(162,830)	(458,596)	(311,654)
Proceeds from sales and calls of securities available for sale	115,294	194,009	12,637
Proceeds from maturities and prepayments of securities available for sale	112,137	149,387	170,798
Net originations of loans	(248,073)	(236,582)	(78,379)
Purchases of loans	(169,860)	(10,189)	(3,456)
Proceeds from sale of delinquent loans	15,857	35,681	44,223
Purchase of bank owned life insurance			(20,000)
Proceeds from sale of Real Estate Owned	3,123	4,763	1,225
Net cash used in investing activities	(339,576)	(326,024)	(197,988)
Financing Activities
Net increase in non-interest bearing deposits	58,491	41,554	37,282
Net (decrease) increase in interest bearing deposits	213,502	174,715	(172,193)
Net increase in mortgagors' escrow deposits	2,881	238	2,774
Net proceeds (repayments) from short-term borrowed funds	30,500	(102,500)	132,000
Proceeds from long-term borrowings	180,000	269,346	212,518
Repayment of long-term borrowings	(167,081)	(109,911)	(80,000)
Purchases of treasury stock	(18,872)	(14,151)	(5,551)
Excess tax benefits (provision) from stock-based payment arrangements	846	443	(303)
Proceeds from issuance of common stock upon exercise of stock options	565	533	885
Cash dividends paid	(17,852)	(15,618)	(15,817)
Net cash provided by financing activities	282,980	244,649	111,595
Net (decrease) increase in cash and cash equivalents	780	(6,940)	(15,296)
Cash and cash equivalents, beginning of year	33,485	40,425	55,721
Cash and cash equivalents, end of year	34,265	33,485	40,425
Supplemental Cash Flow Disclosure
Interest paid	53,965	53,602	62,368
Income taxes paid	24,943	21,389	21,947
Taxes paid if excess tax benefits on stock-based compensation were not tax deductible	25,789	21,832	21,644
Non-cash activities:
Loans transferred to Other Real Estate Owned	7,112	5,369	6,127
Loans provided for the sale of Other Real Estate Owned	712	3,011	2,110
Loans held for investment transferred to loans held for sale	1,150	13,008	12,200
Loans held for sale transferred to loans held for investment		$ 2,214	$ 400

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Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	2014			2013			2012
	(In thousands, except per share data)
Net income, as reported	$	44,239		$	37,752		$	34,331
Divided by:
Weighted average common shares outstanding		29,788			30,047			30,402
Weighted average common stock equivalents		29			26			31
Total weighted average common shares outstanding and common stock equivalents		29,817			30,073			30,433
Basic earnings per common share	$	1.49		$	1.26		$	1.13
Diluted earnings per common share	$	1.48		$	1.26		$	1.13
Dividend Payout ratio		40.3	%		41.3	%		46.0	%

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	$ 116,000	$ 155,300
Amount, Repurchase agreements - fixed rate	911,721	827,252
Repurchase agreement 11 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	7/12/2016
Call Date, FHLB-NY advances - fixed rate	1/12/2015
Amount, Repurchase agreements - fixed rate	20,000
Rate, Repurchase agreements - fixed rate	2.20%
Maturity Date, Repurchase agreements - fixed rate	7/12/2016
Call Date, Repurchase agreements - fixed rate	1/12/2015
Repurchase agreement 1 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	10/18/2017
Call Date, FHLB-NY advances - fixed rate	1/20/2015
Amount, Repurchase agreements - fixed rate	18,000
Rate, Repurchase agreements - fixed rate	4.28%
Maturity Date, Repurchase agreements - fixed rate	10/18/2017
Call Date, Repurchase agreements - fixed rate	1/20/2015
Repurchase agreement 10 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	4/19/2016
Call Date, FHLB-NY advances - fixed rate	1/20/2015
Amount, Repurchase agreements - fixed rate	18,000
Rate, Repurchase agreements - fixed rate	1.60%
Maturity Date, Repurchase agreements - fixed rate	4/19/2016
Call Date, Repurchase agreements - fixed rate	1/20/2015
Repurchase agreement 7 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	9/19/2017
Call Date, FHLB-NY advances - fixed rate	3/19/2015
Amount, Repurchase agreements - fixed rate	20,000
Rate, Repurchase agreements - fixed rate	4.05%
Maturity Date, Repurchase agreements - fixed rate	9/19/2017
Call Date, Repurchase agreements - fixed rate	3/19/2015
Repurchase agreement 3 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	8/1/2020
Call Date, FHLB-NY advances - fixed rate	2/1/2016
Amount, Repurchase agreements - fixed rate	10,000
Rate, Repurchase agreements - fixed rate	3.08%
Maturity Date, Repurchase agreements - fixed rate	8/1/2020
Call Date, Repurchase agreements - fixed rate	2/1/2016
Repurchase agreement 4 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	2/1/2020
Call Date, FHLB-NY advances - fixed rate	2/1/2016
Amount, Repurchase agreements - fixed rate	10,000
Rate, Repurchase agreements - fixed rate	3.19%
Maturity Date, Repurchase agreements - fixed rate	2/1/2020
Call Date, Repurchase agreements - fixed rate	2/1/2016
Repurchase agreement 2 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Maturity Date, FHLB-NY advances - fixed rate	8/1/2020
Call Date, FHLB-NY advances - fixed rate	2/1/2016
Amount, Repurchase agreements - fixed rate	20,000
Rate, Repurchase agreements - fixed rate	3.76%
Maturity Date, Repurchase agreements - fixed rate	8/1/2020
Call Date, Repurchase agreements - fixed rate	2/1/2016
FHLB - NY advance 1 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	20,000
Rate, FHLB-NY advances - fixed rate	4.43%
Maturity Date, FHLB-NY advances - fixed rate	10/10/2017
Call Date, FHLB-NY advances - fixed rate	1/9/2015
Maturity Date, Repurchase agreements - fixed rate	10/10/2017
Call Date, Repurchase agreements - fixed rate	1/9/2015
FHLB - NY advance 2 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	30,000
Rate, FHLB-NY advances - fixed rate	4.60%
Maturity Date, FHLB-NY advances - fixed rate	10/10/2017
Call Date, FHLB-NY advances - fixed rate	1/9/2015
Maturity Date, Repurchase agreements - fixed rate	10/10/2017
Call Date, Repurchase agreements - fixed rate	1/9/2015
FHLB - NY advance 3 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	10,000
Rate, FHLB-NY advances - fixed rate	4.13%
Maturity Date, FHLB-NY advances - fixed rate	9/18/2017
Call Date, FHLB-NY advances - fixed rate	3/17/2015
Maturity Date, Repurchase agreements - fixed rate	9/18/2017
Call Date, Repurchase agreements - fixed rate	3/17/2015
FHLB - NY advance 4 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	10,000
Rate, FHLB-NY advances - fixed rate	4.32%
Maturity Date, FHLB-NY advances - fixed rate	9/18/2017
Call Date, FHLB-NY advances - fixed rate	3/17/2015
Maturity Date, Repurchase agreements - fixed rate	9/18/2017
Call Date, Repurchase agreements - fixed rate	3/17/2015
FHLB - NY advance 5 [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowings Which Have Call Provisions [Line Items]
Amount, FHLB-NY advances - fixed rate	$ 10,000
Rate, FHLB-NY advances - fixed rate	4.15%
Maturity Date, FHLB-NY advances - fixed rate	9/18/2017
Call Date, FHLB-NY advances - fixed rate	3/18/2015
Maturity Date, Repurchase agreements - fixed rate	9/18/2017
Call Date, Repurchase agreements - fixed rate	3/18/2015

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Components of the Net Pension Expense for the Directors’ Plan (Directors' Plan [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Components of the Net Pension Expense for the Directors’ Plan [Line Items]
Service cost	$ 54	$ 82	$ 80
Interest cost	116	98	110
Amortization of unrecognized gain	(60)	(36)	(29)
Amortization of past service liability	40	40	40
Net pension expense	150	184	201
Current actuarial gain	(52)	(122)	(44)
Amortization of actuarial gain	60	36	29
Amortization of prior service cost	(40)	(40)	(40)
Total recognized in other comprehensive income	(32)	(126)	(55)
Total recognized in net pension expense and other comprehensive income	$ 118	$ 58	$ 146

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Note 10 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2014		2013			2012
	(In thousands)
Federal:
Current	$	18,052	$	17,808		$	17,330
Deferred		2,860		(464	)		(590	)
Total federal tax provision		20,912		17,344			16,740
State and Local:
Current		6,369		5,828			5,321
Deferred		1,292		(216	)		(214	)
Total state and local tax provision		7,661		5,612			5,107
Total income tax provision	$	28,573	$	22,956		$	21,847

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2014					2013					2012
	(Dollars in thousands)
Taxes at federal statutory rate	$	25,484		35.0	%	$	21,248		35.0	%	$	19,662		35.0	%
Increase (reduction) in taxes resulting from:
State and local income tax, net of Federal income tax benefit		4,980		6.8			3,648		6.0			3,320		5.9
Other		(1,891	)	(2.6	)		(1,940	)	(3.2	)		(1,135	)	(2.0	)
Taxes at effective rate	$	28,573		39.2	%	$	22,956		37.8	%	$	21,847		38.9	%

Schedule of Components of the Income Taxes Attributable to Income From Operations and Changes in Equity [Table Text Block]

	2014			2013			2012
	(In thousands)
Income from operations	$	28,573		$	22,956		$	21,847
Equity:
Change in fair value of securities available for sale		9,200			(21,309	)		5,577
Current year actuarial gains (losses) of postretirement plans		(2,880	)		2,527			(340	)
Amortization of net actuarial losses and prior service credits		(311	)		521			436
Compensation expense for tax purposes in (excess) or less than that recognized for financial reporting purposes		(846	)		(443	)		303
Total income taxes	$	33,736		$	4,252		$	27,823

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2014		2013
	(In thousands)
Deferred tax asset:
Postretirement benefits	$	5,407	$	4,880
Allowance for loan losses		11,007		13,895
Stock based compensation		2,821		2,322
Depreciation		1,740		1,400
Unrealized loss on securities available for sale		-		6,612
Fair value adjustment on financial assets carried at fair value		-		2,470
Derivative financial instruments		1,025		-
Other-than-temporary impairment charges		-		1,584
Adjustment required to recognize funded status of postretirement pension plans		4,787		2,218
Other		3,023		2,336
Deferred tax asset		29,810		37,717
Deferred tax liability:
Valuation differences resulting from acquired assets and liabilities		2,764		2,805
Fair value adjustment on financial assets carried at fair value		132		-
Fair value adjustment on financial liabilities carried at fair value		14,480		14,910
Unrealized gains on securities available for sale		2,588		-
Other		2,525		1,898
Deferred tax liability		22,489		19,613
Net deferred tax asset included in other assets	$	7,321	$	18,104

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Note 3 - Loans (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 31,890,000	$ 47,977,000
Impaired Financing Receivable, Recorded Investment	56,500,000	81,800,000
Impaired Financing Receivable, Average Recorded Investment	65,800,000	95,000,000
Financing Receivable, Modifications, Number of Contracts	0	6
Financing Receivable, Modifications, Number of Contracts Transferred To Non-Accrual	3	0
Financing Receivable, Modifications, Recorded Investment Transferred To Non-Accrual	2,700,000
Financing Receivable Modification Number of Contracts Paid In Full	2
Financing Receivable, Modifications, Number of Contracts Transferred To Performing Accrual	1
Financing Receivable, Modifications, Recorded Investment Transferred To Performing Accrual	$ 400,000

XML

Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	$ 374,858	$ 601,100
Unrealized Losses	7,259	28,843
Less Than 12 Months - Fair Value	97,274	562,673
Less Than 12 Months - Unrealized Losses	846	23,116
12 Months or More - Fair Value	277,584	38,427
12 Months or More - Unrealized Losses	6,413	5,727
Corporate Debt Securities [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	39,287	39,033
Unrealized Losses	714	967
Less Than 12 Months - Fair Value	9,573	39,033
Less Than 12 Months - Unrealized Losses	428	967
12 Months or More - Fair Value	29,714
12 Months or More - Unrealized Losses	286
Municipal [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	8,810	100,875
Unrealized Losses	61	4,637
Less Than 12 Months - Fair Value	3,546	95,958
Less Than 12 Months - Unrealized Losses	11	4,187
12 Months or More - Fair Value	5,264	4,917
12 Months or More - Unrealized Losses	50	450
Other Debt Obligations [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	292	6,337
Unrealized Losses	8	3,225
12 Months or More - Fair Value	292	6,337
12 Months or More - Unrealized Losses	8	3,225
Available For Sale Securities, Excluding Mortgage-Backed Securities [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	48,389	146,245
Unrealized Losses	783	8,829
Less Than 12 Months - Fair Value	13,119	134,991
Less Than 12 Months - Unrealized Losses	439	5,154
12 Months or More - Fair Value	35,270	11,254
12 Months or More - Unrealized Losses	344	3,675
REMIC And CMO [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	216,190	298,165
Unrealized Losses	4,627	11,830
Less Than 12 Months - Fair Value	77,382	279,743
Less Than 12 Months - Unrealized Losses	399	10,650
12 Months or More - Fair Value	138,808	18,422
12 Months or More - Unrealized Losses	4,228	1,180
GNMA [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	8,358	9,213
Unrealized Losses	124	425
Less Than 12 Months - Fair Value		9,213
Less Than 12 Months - Unrealized Losses		425
12 Months or More - Fair Value	8,358
12 Months or More - Unrealized Losses	124
FNMA [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	95,148	139,999
Unrealized Losses	1,717	7,526
Less Than 12 Months - Fair Value		131,248
Less Than 12 Months - Unrealized Losses		6,654
12 Months or More - Fair Value	95,148	8,751
12 Months or More - Unrealized Losses	1,717	872
FHLMC [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	6,773	7,478
Unrealized Losses	8	233
Less Than 12 Months - Fair Value	6,773	7,478
Less Than 12 Months - Unrealized Losses	8	233
Collateralized Mortgage Backed Securities [Member]
Note 6 - Debt and Equity Securities (Details) - Available for Sale Securities With Gross Unrealized Losses and Their Fair Value [Line Items]
Fair Value	326,469	454,855
Unrealized Losses	6,476	20,014
Less Than 12 Months - Fair Value	84,155	427,682
Less Than 12 Months - Unrealized Losses	407	17,962
12 Months or More - Fair Value	242,314	27,173
12 Months or More - Unrealized Losses	$ 6,069	$ 2,052

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Consolidated Statements of Financial Condition (USD $)	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 34,265,000	$ 33,485,000
Mortgage-backed securities (including assets pledged of $464,626 and $556,520 at December 31, 2014 and 2013, respectively; $4,678 and $7,119 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)	704,933,000	756,156,000
Other securities (including assets pledged of $57,562 at December 31, 2014; $27,915 and $30,163 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)	268,377,000	261,634,000
Loans held for sale	0	425,000
Loans, net of fees and costs	3,810,373,000	3,434,178,000
Less: Allowance for loan losses	(25,096,000)	(31,776,000)
Net loans	3,785,277,000	3,402,402,000
Interest and dividends receivable	17,251,000	17,370,000
Bank premises and equipment, net	21,868,000	20,356,000
Federal Home Loan Bank of New York stock, at cost	46,924,000	46,025,000
Bank owned life insurance	112,656,000	109,606,000
Goodwill	16,127,000	16,127,000
Other assets	69,335,000	57,915,000
Total assets	5,077,013,000	4,721,501,000
Due to depositors:
Non-interest bearing	255,834,000	197,343,000
Interest-bearing	3,217,085,000	3,002,639,000
Mortgagors' escrow deposits	35,679,000	32,798,000
Borrowed funds ($28,771 and $29,570 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)	940,492,000	856,822,000
Securities sold under agreements to repurchase	116,000,000	155,300,000
Other liabilities	55,676,000	44,067,000
Total liabilities	4,620,766,000	4,288,969,000
Stockholders' Equity
Preferred stock ($0.01 par value; 5,000,000 shares authorized; none issued)
Common stock ($0.01 par value; 100,000,000 shares authorized; 31,530,595 shares issued at December 31, 2014 and 2013; 29,403,823 shares and 30,123,252 shares outstanding at December 31, 2014 and 2013, respectively)	315,000	315,000
Additional paid-in capital	206,437,000	201,902,000
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)	(37,221,000)	(22,053,000)
Retained earnings	289,623,000	263,743,000
Accumulated other comprehensive loss, net of taxes	(2,907,000)	(11,375,000)
Total stockholders' equity	456,247,000	432,532,000
Total liabilities and stockholders' equity	$ 5,077,013,000	$ 4,721,501,000

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Note 15 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Operating Leases of Lessee Disclosure [Table Text Block]

	Minimum Rental
	(In thousands)
Years ended December 31:
2015	$	4,440
2016		4,513
2017		4,383
2018		4,448
2019		5,332
Thereafter		30,687
Total minimum payments required	$	53,803

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 1995
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets
Equity Securities [Member] | Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	8.00%
Equity Securities [Member] | Maximum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	10.00%
Equity Securities [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	60.00%
Fixed Income Securities [Member] | Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	3.00%
Fixed Income Securities [Member] | Maximum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	5.00%
Fixed Income Securities [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations	40.00%
Trust for Benefit of Employees [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Full Time Employment Years of Service	1 year
Amount Borrowed From the Company by the Employee Benefit Trust (in Dollars)				$ 7,900,000
Stock Issued During Period, Value, Employee Benefit Plan (in Dollars)				7,000
Stock Issued During Period, Shares, Employee Benefit Plan (in Shares)				2,328,750
Employer Contributions to the 401(k) and Profit Sharing Plans Funded By the Employee Benefit Trust (in Dollars)	2,700,000	2,300,000	2,100,000
U.S. large-cap growth [Member] | Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	55
U.S. large-cap growth [Member] | Maximum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	70
U.S. Small-Cap Blend [Member] | Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	40
U.S. Small-Cap Blend [Member] | Maximum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	100
U.S. Small-Cap Blend [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Pension Plan Assets, Equity Securities Held in Mutual Funds, Minimum Market Capitalization (in Dollars)	100,000,000
International blend [Member] | Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	80
International blend [Member] | Maximum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Number of Stocks Held in Portfolio	90
In Event of Termination [Member] | Less Than [Member] | Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Full Time Employment Years of Service	2 years
In Event of Termination [Member] | Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Full Time Employment Years of Service	2 years
Defined Benefit Contributions, Months of Benefit Used In Lump Sum Payment	120 months
Minimum [Member] | Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	8.00%
Minimum [Member] | Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Benefit Service Period	3 years
Maximum [Member] | Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Benefit Service Period	10 years
Retirement Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Contributions by Employer (in Dollars)		800,000	700,000
Defined Benefit Plan, Benefit Obligation (in Dollars)	24,100,000	19,700,000
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Contributions by Employer (in Dollars)		831,000
Defined Benefit Plan, Benefit Obligation (in Dollars)	24,097,000	19,740,000	22,531,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets	7.50%	7.50%	7.50%
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months (in Dollars)	1,094,000
Postretirement Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Contributions by Employer (in Dollars)	49,000	66,000
Defined Benefit Plan, Benefit Obligation (in Dollars)	8,073,000	5,586,000	5,927,000
Number of Unfunded Postretirement Benefit Plans	2
Full Time Employment Years of Service	5 years
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months (in Dollars)	181,000
Postretirement Plan 1 [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Cost Sharing Arrangement, Medical Benefits, Percentage	50.00%
Medical Premiums, Required Percentage to Be Paid By Spouses of Future Retirees	100.00%
401(k) [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Contribution Plan Service Period Requirement	1 year
Directors' Plan [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Benefit Obligation (in Dollars)	2,700,000	2,700,000
Annual Retirement Benefit Paid to Terminating Eligible Directors (in Dollars)	48,000
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year (in Dollars)	288,000
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Benefit Plan, Contributions by Employer (in Dollars)	120,000	98,000
Defined Benefit Plan, Benefit Obligation (in Dollars)	2,663,000	2,666,000	2,706,000
Full Time Employment Years of Service	5 years
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months (in Dollars)	288,000
401(k) [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Contribution Plan Annual Employer Matching Of Employee's Contribution Percent	50.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	3.00%
401(k) [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	20.00%
Defined Contribution Plan, Vesting Period	5 years
Defined Contribution Plan, Employers Matching Contribution, Vesting Percentage Upon Change of Control	100.00%
Defined Contribution Plan, Cost Recognized (in Dollars)	3,100,000	2,900,000	2,400,000
Defined Contribution Retirement Plan ("DCRP") [Member] | Savings Bank [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	4.00%
Non-Qualified Deferred Compensation Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) [Line Items]
Defined Contribution Plan Annual Employer Matching Of Employee's Contribution Percent	50.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	5.00%
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	20.00%
Defined Contribution Plan, Vesting Period	5 years
Defined Contribution Plan, Employers Matching Contribution, Vesting Percentage Upon Change of Control	100.00%
Defined Contribution Plan, Cost Recognized (in Dollars)	$ 400,000	$ 400,000	$ 400,000

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Note 19 - Derivative Financial Instruments (Details) - Information Regarding the Company’s Derivative Financial Instruments (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013
Derivative [Line Items]
Notional Amount	$ 50,792		$ 129,217
Net Carrying Value	(2,565)	[1]	2,081	[1]
Purchase Price			9,035
Interest Rate Cap [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	36,321		100,000
Net Carrying Value	(2,239)	[1]		[1]
Purchase Price			9,035
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	4,131		18,000
Net Carrying Value	84	[1]	1,681	[1]
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	10,340		11,217
Net Carrying Value	(410)	[1]	400	[1]
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	36,300		118,000
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	$ 14,500		$ 11,200

[1] Derivatives in a net positive position are recorded as "Other assets" and derivatives in a net negative position are recorded as "Other liabilities" in the Consolidated Statements of Financial Condition. There were no unrealized losses on derivative financial instruments at December 31, 2014 and 2013.

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - For the Directors’ Plan, the Change in Benefit Obligation and Assets (Directors' Plan [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Directors' Plan [Member]
Change in benefit obligation:
Projected benefit obligation, balance	$ 2,666	$ 2,706
Service cost	54	82	80
Interest cost	116	98	110
Actuarial gain	(53)	(122)
Benefits paid	(120)	(98)
Projected benefit obligation, balance	2,663	2,666	2,706
Change in plan assets:
Employer contributions	120	98
Benefits paid	(120)	(98)
Accrued pension cost included in other liabilities	$ (2,663)	$ (2,666)

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Consolidated Statements of Changes in Stockholders’ Equity (USD $) In Thousands, unless otherwise specified	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member] Shares Purchased To Fund Options Exercised [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Purchase of Common Shares Outstanding [Member]	Restricted Stock Awards Repurchased To Satisfy Tax Obligations [Member]	Total
Balance at Dec. 31, 2011	$ 315	$ 195,628		$ (7,355)	$ 223,510	$ 4,813
Common Stock
Amortization of prior service credits, net of taxes of $19, $20 and $20 for the years ended December 31, 2014, 2013 and 2012, respectively						(26)
Amortization of net actuarial losses, net of taxes of ($330), ($541) and ($456) for the years ended December 31, 2014, 2013 and 2012, respectively						587			(587)
Unrecognized actuarial gains (losses), net of taxes of $2,880, ($2,527) and $340 for the years ended December 31, 2014, 2013 and 2012, respectively						(479)			(479)
Change in net unrealized (losses) gains on securities available for sale, net of taxes of approximately ($10,441), $20,609 and ($5,259) for the years ended December 31, 2014, 2013 and 2012, respectively						6,831			6,831
Reclassification adjustment for (gains) losses included in net income, net of taxes of approximately $1,241, $700 and ($318) for the years ended December 31, 2014, 2013 and 2012, respectively						411			26
Net income					34,331				34,331
Award of common shares released from Employee Benefit Trust (136,559, 143,941 and 157,922 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		1,480
Value of shares issued upon vesting of restricted stock unit awards		317		1,737	(105)
Cash dividends declared and paid on common shares ($0.60, $0.52 and $0.52 per share for the years ended December 31, 2014, 2013 and 2012, respectively)					(15,817)
Value of stock options exercised		164		1,818	(63)				905
Stock-based compensation activity, net		1,028
Stock-based income tax (provision) benefit		(303)
Treasury Stock
Value of shares purchased for the Treasury			(906)				(5,019)	(532)
Balance at Dec. 31, 2012	315	198,314		(10,257)	241,856	12,137			442,365
Common Stock
Amortization of prior service credits, net of taxes of $19, $20 and $20 for the years ended December 31, 2014, 2013 and 2012, respectively						(26)
Amortization of net actuarial losses, net of taxes of ($330), ($541) and ($456) for the years ended December 31, 2014, 2013 and 2012, respectively						696			(696)
Unrecognized actuarial gains (losses), net of taxes of $2,880, ($2,527) and $340 for the years ended December 31, 2014, 2013 and 2012, respectively						3,261			3,261
Change in net unrealized (losses) gains on securities available for sale, net of taxes of approximately ($10,441), $20,609 and ($5,259) for the years ended December 31, 2014, 2013 and 2012, respectively						(26,541)			(26,541)
Reclassification adjustment for (gains) losses included in net income, net of taxes of approximately $1,241, $700 and ($318) for the years ended December 31, 2014, 2013 and 2012, respectively						(902)			1,700
Net income					37,752				37,752
Award of common shares released from Employee Benefit Trust (136,559, 143,941 and 157,922 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		1,652
Value of shares issued upon vesting of restricted stock unit awards		161		2,406	(119)
Cash dividends declared and paid on common shares ($0.60, $0.52 and $0.52 per share for the years ended December 31, 2014, 2013 and 2012, respectively)					(15,618)
Value of stock options exercised		1,451		6,763	(128)				6,814
Stock-based compensation activity, net		(119)
Stock-based income tax (provision) benefit		443
Treasury Stock
Value of shares purchased for the Treasury			(6,814)				(13,152)	(999)
Balance at Dec. 31, 2013	315	201,902		(22,053)	263,743	(11,375)			432,532
Common Stock
Amortization of prior service credits, net of taxes of $19, $20 and $20 for the years ended December 31, 2014, 2013 and 2012, respectively						(26)
Amortization of net actuarial losses, net of taxes of ($330), ($541) and ($456) for the years ended December 31, 2014, 2013 and 2012, respectively						370			(370)
Unrecognized actuarial gains (losses), net of taxes of $2,880, ($2,527) and $340 for the years ended December 31, 2014, 2013 and 2012, respectively						(3,790)			(3,790)
Change in net unrealized (losses) gains on securities available for sale, net of taxes of approximately ($10,441), $20,609 and ($5,259) for the years ended December 31, 2014, 2013 and 2012, respectively						13,548			13,548
Reclassification adjustment for (gains) losses included in net income, net of taxes of approximately $1,241, $700 and ($318) for the years ended December 31, 2014, 2013 and 2012, respectively						(1,634)			1,634
Net income					44,239				44,239
Award of common shares released from Employee Benefit Trust (136,559, 143,941 and 157,922 common shares for the years ended December 31, 2014, 2013 and 2012, respectively)		2,075
Value of shares issued upon vesting of restricted stock unit awards		30		3,205	(430)
Cash dividends declared and paid on common shares ($0.60, $0.52 and $0.52 per share for the years ended December 31, 2014, 2013 and 2012, respectively)					(17,853)
Value of stock options exercised		455		2,461	(77)				1,962
Stock-based compensation activity, net		1,129
Stock-based income tax (provision) benefit		846
Treasury Stock
Value of shares purchased for the Treasury			(1,962)				(17,644)	(1,228)
Balance at Dec. 31, 2014	$ 315	$ 206,437		$ (37,221)	$ 289,622	$ (2,907)			$ 456,247

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Note 11 - Stock-Based Compensation (Details) - Stock Options Exercised (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Stock Options Exercised [Abstract]
Proceeds from stock options exercised	$ 565	$ 533	$ 885
Fair value of shares received upon exercise of stock options	1,962	6,814	905
Tax benefit related to stock options exercised	88	151	56
Intrinsic value of stock options exercised	$ 488	$ 1,228	$ 256
Weighted average fair value on grant date (in Dollars per share)

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Note 22 - Parent Company Only Financial Information (Details) - Condensed Statements of Financial Condition for the Holding Company: (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets:
Cash and due from banks	$ 34,265	$ 33,485
Other securities ($864 and $2,562 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)	268,377	261,634
Goodwill	16,127	16,127
Other assets	69,335	57,915
Total assets	5,077,013	4,721,501
Borrowings (at fair value pursuant to the fair value option at December 31, 2014 and 2013)	28,771	29,570
Other liabilities	55,676	44,067
Total liabilities	4,620,766	4,288,969
Stockholders' Equity:
Common stock	315	315
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)	37,221	22,053
Retained earnings	289,623	263,743
Accumulated other comprehensive loss, net of taxes	(2,907)	(11,375)	12,137
Total equity	456,247	432,532	442,365
Total liabilities and equity	5,077,013	4,721,501
Holding Company [Member]
Assets:
Cash and due from banks	7,749	16,525
Other securities ($864 and $2,562 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)	1,156	2,849
Interest receivable	4	4
Investment in subsidiaries	482,996	449,580
Goodwill	2,185	2,185
Other assets	4,402	4,354
Total assets	498,492	475,497
Borrowings (at fair value pursuant to the fair value option at December 31, 2014 and 2013)	28,770	29,570
Other liabilities	13,475	13,395
Total liabilities	42,245	42,965
Stockholders' Equity:
Common stock	315	315
Additional paid-in capital	206,437	201,902
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)	(37,221)	(22,053)
Retained earnings	289,623	263,743
Accumulated other comprehensive loss, net of taxes	(2,907)	(11,375)
Total equity	456,247	432,532
Total liabilities and equity	$ 498,492	$ 475,497

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Note 22 - Parent Company Only Financial Information (Details) - Condensed Statements of Income for the Holding Company: (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Condensed Income Statements, Captions [Line Items]
Interest income									$ 25,969	$ 28,310	$ 31,306
Interest expense	(12,057)	(17,220)	(12,740)	(12,724)	(13,058)	(12,866)	(12,999)	(15,940)	(54,741)	(54,863)	(63,275)
Gain on sale of securities									2,875	3,021	47
Net gain (loss) from fair value adjustments									(2,568)	(2,521)	55
Other operating expenses									(11,809)	(10,634)	(11,450)
Income tax benefit	6,988	7,060	7,598	6,927	6,458	6,024	6,155	4,319	28,573	22,956	21,847
Net income	11,057	11,201	11,685	10,296	11,948	9,421	9,627	6,756	44,239	37,752	34,331
Holding Company [Member]
Condensed Income Statements, Captions [Line Items]
Dividends from the Bank									20,000	20,000	20,000
Interest income									512	590	694
Interest expense									(1,039)	(1,066)	(2,957)
Gain on sale of securities										17
Net gain (loss) from fair value adjustments									779	(5,475)	1,991
Other operating expenses									(786)	(621)	(730)
Income before taxes and equity in undistributed earnings of subsidiary									19,466	13,445	18,998
Income tax benefit									668	2,857	498
Income before equity in undistributed earnings of subsidiary									20,134	16,302	19,496
Equity in undistributed earnings of the Bank									24,105	21,450	14,835
Net income									$ 44,239	$ 37,752	$ 34,331

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Note 3 - Loans (Details) - Summary of Interest Foregone on Non-Accrual Loans and Loans Classified as TDR (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary of Interest Foregone on Non-Accrual Loans and Loans Classified as TDR [Abstract]
Interest income that would have been recognized had the loans performed in accordance with their original terms	$ 2,919	$ 4,656	$ 9,026
Less: Interest income included in the results of operations	796	1,213	1,692
Total foregone interest	$ 2,123	$ 3,443	$ 7,334

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - For the Retirement Plan, the Change in Benefit Obligation and Assets (Retirement Plan [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Retirement Plan [Member]
Change in benefit obligation:
Projected benefit obligation, balance	$ 19,740	$ 22,531
Interest cost	891	827	879
Actuarial (gains) loss	4,446	(2,485)
Benefits paid	(980)	(1,133)
Projected benefit obligation, balance	24,097	19,740	22,531
Change in plan assets:
Market value of assets, balance	20,496	17,300
Actual return on plan assets	993	3,498
Employer contributions		831
Benefits paid	(980)	(1,133)
Market value of assets, balance	20,509	20,496	17,300
Accrued pension (liability) prepaid included in other (liabilities) assets	$ (3,588)	$ 756

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Note 5 - Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Other Real Estate, Roll Forward [Table Text Block]

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Balance at beginning of year	$	2,985		$	5,278		$	3,179
Acquisitions		7,112			5,369			6,127
Reductions to carrying value		(5	)		(243	)		(516	)
Sales		(3,766	)		(7,419	)		(3,512	)
Balance at end of year	$	6,326		$	2,985		$	5,278

Gross Gains, Gross Losses, And Write-Downs Of OREO [Table Text Block]

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains	$	178		$	443		$	78
Gross losses		(109	)		(89	)		(255	)
Write-down of carrying value		(5	)		(243	)		(516	)
Total	$	64		$	111		$	(693	)

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Note 18 - Fair Value of Financial Instruments (Details) - Assets and Liabilities Carried at Fair Value on a Non-Recurring Basis, and the Method Used to Determine Their Fair Value (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2013
Assets:
Assets	$ 28,500	$ 26,954
Fair Value, Inputs, Level 3 [Member] | Loans Held For Sale [Member]
Assets:
Assets			425
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member]
Assets:
Assets	22,174		23,544
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member]
Assets:
Assets	6,326		2,985
Fair Value, Inputs, Level 3 [Member]
Assets:
Assets	28,500		26,954
Loans Held For Sale [Member]
Assets:
Assets		425
Impaired Loans [Member]
Assets:
Assets	22,174	23,544
Other Real Estate Owned [Member]
Assets:
Assets	$ 6,326	$ 2,985

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Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	$ 659	$ 13,263	$ 20,240
Multi-Family Residential [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	1,011	3,044	5,872
Commercial Real Estate Loans [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	(156)	727	2,439
One-To-Four Family - Mixed-Use Property [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	(185)	3,940	3,928
One-To-Four Family - Residential [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	(166)	429	1,554
Co-Operative Apartments [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	(7)	104	62
Construction [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs		2,678	4,591
Small Business Administration [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	(43)	370	237
Commercial Business And Other [Member]
Note 3 - Loans (Details) - Net Loan Charge-Offs (Recoveries) by Loan Type [Line Items]
Net loan charge-offs	$ 205	$ 1,971	$ 1,557

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Note 14 - Regulatory Capital

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

14. Regulatory Capital

Under current capital regulations, the Bank is required to comply with three separate capital adequacy standards. As of December 31, 2014, the Bank continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements.

Set forth below is a summary of the Bank’s compliance with banking regulatory capital standards.

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	472,251		9.63	%	$	447,305		9.48	%
Requirement to be well capitalized		245,254		5.00			235,992		5.00
Excess		226,997		4.63			211,313		4.48
Tier I risk-based capital:
Capital level	$	472,251		13.87	%	$	447,305		14.59	%
Requirement to be well capitalized		204,354		6.00			183,944		6.00
Excess		267,897		7.87			263,361		8.59
Total risk-based capital:
Capital level	$	497,347		14.60	%	$	479,081		15.63	%
Requirement to be well capitalized		340,589		10.00			306,573		10.00
Excess		156,758		4.60			172,508		5.63

As a result of its conversion to a bank holding company on February 28, 2013, the Holding Company became subject to the same regulatory capital requirements as the Bank. As of December 31, 2014, the Holding Company continues to be categorized as “well-capitalized” under the prompt corrective action regulations and continues to exceed all regulatory capital requirements.

Set forth below is a summary of the Holding Company’s compliance with banking regulatory capital standards.

	December 31, 2014					December 31, 2013
	Amount		Percent of Assets			Amount		Percent of Assets
	(Dollars in thousands)
Tier I (leverage) capital:
Capital level	$	471,233		9.62	%	$	456,772		9.70	%
Requirement to be well capitalized		244,960		5.00			235,547		5.00
Excess		226,273		4.62			221,225		4.70
Tier I risk-based capital:
Capital level	$	471,233		13.87	%	$	456,772		14.93	%
Requirement to be well capitalized		203,878		6.00			183,579		6.00
Excess		267,355		7.87			273,193		8.93
Total risk-based capital:
Capital level	$	496,329		14.61	%	$	488,548		15.97	%
Requirement to be well capitalized		339,797		10.00			305,966		10.00
Excess		156,532		4.61			182,582		5.97

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Note 6 - Debt and Equity Securities (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	90,719	$	91,273	$	1,268	$	714
Municipals		145,864		148,896		3,093		61
Mutual funds		21,118		21,118		-		-
Other		7,098		7,090		-		8
Total other securities		264,799		268,377		4,361		783
REMIC and CMO		504,207		505,768		6,188		4,627
GNMA		13,862		14,159		421		124
FNMA		169,956		170,367		2,128		1,717
FHLMC		14,505		14,639		142		8
Total mortgage-backed securities		702,530		704,933		8,879		6,476
Total securities available for sale	$	967,329	$	973,310	$	13,240	$	7,259

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	100,362	$	101,711	$	2,316	$	967
Municipals		127,967		123,423		93		4,637
Mutual funds		21,565		21,565		-		-
Other		18,160		14,935		-		3,225
Total other securities		268,054		261,634		2,409		8,829
REMIC and CMO		494,984		489,670		6,516		11,830
GNMA		38,974		40,874		2,325		425
FNMA		217,615		212,322		2,233		7,526
FHLMC		13,297		13,290		226		233
Total mortgage-backed securities		764,870		756,156		11,300		20,014
Total securities available for sale	$	1,032,924	$	1,017,790	$	13,709	$	28,843

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,287	$	714	$	9,573	$	428	$	29,714	$	286
Municipals		8,810		61		3,546		11		5,264		50
Other		292		8		-		-		292		8
Total other securities		48,389		783		13,119		439		35,270		344
REMIC and CMO		216,190		4,627		77,382		399		138,808		4,228
GNMA		8,358		124		-		-		8,358		124
FNMA		95,148		1,717		-		-		95,148		1,717
FHLMC		6,773		8		6,773		8		-		-
Total mortgage-backed securities		326,469		6,476		84,155		407		242,314		6,069
Total securities available for sale	$	374,858	$	7,259	$	97,274	$	846	$	277,584	$	6,413

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,033	$	967	$	39,033	$	967	$	-	$	-
Municipals		100,875		4,637		95,958		4,187		4,917		450
Other		6,337		3,225		-		-		6,337		3,225
Total other securities		146,245		8,829		134,991		5,154		11,254		3,675
REMIC and CMO		298,165		11,830		279,743		10,650		18,422		1,180
GNMA		9,213		425		9,213		425		-		-
FNMA		139,999		7,526		131,248		6,654		8,751		872
FHLMC		7,478		233		7,478		233		-		-
Total mortgage-backed securities		454,855		20,014		427,682		17,962		27,173		2,052
Total securities available for sale	$	601,100	$	28,843	$	562,673	$	23,116	$	38,427	$	5,727

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Beginning balance	$	3,738		$	6,178		$	6,922
Recognition of actual losses		-			(842	)		(1,271	)
OTTI charges due to credit loss recorded in earnings		-			1,419			776
Securities sold during the period		(3,738	)		(3,017	)		(249	)
Ending balance	$	-		$	3,738		$	6,178

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	23,513	$	23,516
Due after one year through five years		35,802		37,050
Due after five years through ten years		68,620		68,097
Due after ten years		136,864		139,714
Total other securities		264,799		268,377
Mortgage-backed securities		702,530		704,933
Total securities available for sale	$	967,329	$	973,310

Realized Gain (Loss) on Investments [Table Text Block]

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains from the sale of securities	$	5,247		$	5,222		$	154
Gross losses from the sale of securities		(2,372	)		(2,201	)		(107	)
Net gains from the sale of securities	$	2,875		$	3,021		$	47

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts in Accumulated Other Comprehensive Income to be Recognized as Components of Net Periodic Expense for These Plans in 2013 (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts in Accumulated Other Comprehensive Income to be Recognized as Components of Net Periodic Expense for These Plans in 2013 [Line Items]
Net Actuarial loss (gain)	$ 1,225
Prior Service cost (credit)	(45)
Total	1,180
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts in Accumulated Other Comprehensive Income to be Recognized as Components of Net Periodic Expense for These Plans in 2013 [Line Items]
Net Actuarial loss (gain)	1,162
Total	1,162
Other Postretirement Benefit Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts in Accumulated Other Comprehensive Income to be Recognized as Components of Net Periodic Expense for These Plans in 2013 [Line Items]
Net Actuarial loss (gain)	119
Prior Service cost (credit)	(85)
Total	34
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Amounts in Accumulated Other Comprehensive Income to be Recognized as Components of Net Periodic Expense for These Plans in 2013 [Line Items]
Net Actuarial loss (gain)	(56)
Prior Service cost (credit)	40
Total	$ (16)

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Note 16 - Concentration of Credit Risk (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014
Risks and Uncertainties [Abstract]
Lending Limit to Single Borrower	$ 70.8
Largest Aggregate Amount of Loans to Single Borrower	$ 66.7

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Note 16 - Concentration of Credit Risk

12 Months Ended

Dec. 31, 2014

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

16. Concentration of Credit Risk

The Company’s lending is concentrated in the New York City metropolitan area. The Company evaluates each customer’s creditworthiness on a case-by-case basis under the Company’s established underwriting policies. The collateral obtained by the Company generally consists of first liens on one-to-four family residential, multi-family residential, and commercial real estate. At December 31, 2014, the largest amount the Bank could lend to one borrower was approximately $70.8 million, and at that date, the Bank’s largest aggregate amount of loans to one borrower was $66.7 million, all of which were performing according to their terms.

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Note 5 - Other Real Estate Owned (Details) - Activity in OREO (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Activity in OREO [Abstract]
Balance	$ 2,985	$ 5,278	$ 3,179
Acquisitions	7,112	5,369	6,127
Reductions to carrying value	(5)	(243)	(516)
Sales	(3,766)	(7,419)	(3,512)
Balance	$ 6,326	$ 2,985	$ 5,278

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Resulting Net Periodic Postretirement Expense Consisted of the Following Components for the Year (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Resulting Net Periodic Postretirement Expense Consisted of the Following Components for the Year [Line Items]
Amortization of prior service credit	$ (26)	$ (26)	$ (26)
Postretirement Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Resulting Net Periodic Postretirement Expense Consisted of the Following Components for the Year [Line Items]
Service cost	358	449	400
Interest cost	253	219	217
Amortization of unrecognized loss		50	40
Amortization of past service credit	(85)	(85)	(85)
Net postretirement benefit expense	526	633	572
Current year actuarial (gain) loss	1,925	(943)	211
Amortization of actuarial gain		(50)	(40)
Amortization of prior service credit	85	85	85
Total recognized in other comprehensive income	2,010	(908)	256
Total recognized in net postretirement expense and other comprehensive income	$ 2,536	$ (275)	$ 828

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Consolidated Statements of Changes in Stockholders’ Equity (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of shares issued upon the exercise of stock options	150,115
Number of shares purchased for the Treasury	914,671	836,092
Amortization of prior service costs (credit), taxes (in Dollars)	$ (311)	$ 521	$ 436
Additional Paid-in Capital [Member]
Release of shares from Employee Benefit Trust, shares	136,559	143,941	157,922
Shares issued upon vesting of restricted stock unit awards	7,300	120,114	113,272
Number of shares issued upon the exercise of stock options	138,575	463,245	125,405
Treasury Stock [Member] | Shares Purchased To Fund Options Exercised [Member]
Number of shares purchased for the Treasury	97,518	366,517	65,074
Treasury Stock [Member]
Shares issued upon vesting of restricted stock unit awards	202,466	180,997	146,149
Number of shares issued upon the exercise of stock options	150,115	463,245	150,225
Retained Earnings [Member]
Shares issued upon vesting of restricted stock unit awards	195,166	60,883	32,877
Number of shares issued upon the exercise of stock options	11,540	65,470	24,820
Cash dividends declared and paid on preferred shares, cumulative preferred dividends (in Dollars per share)	$ 0.60	$ 0.52	$ 0.52
Accumulated Other Comprehensive Income (Loss) [Member]
Amortization of prior service costs (credit), taxes (in Dollars)	19	20	20
Amortization of net actuarial losses, taxes (in Dollars)	(330)	(541)	(456)
Unrecognized actuarial (losses) gains, taxes (in Dollars)	2,880	(2,527)	340
Change in net unrealized gains on securities available for sale, taxes (in Dollars)	(10,441)	20,609	(5,259)
Reclassification adjustment for losses (gains) included in net income, taxes (in Dollars)	$ 1,241	$ 700	$ (318)
Purchase of Common Shares Outstanding [Member]
Number of shares purchased for the Treasury	914,671	836,092	352,000
Restricted Stock Awards Repurchased To Satisfy Tax Obligations [Member]
Number of shares purchased for the Treasury	59,821	61,710	40,148

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Consolidated Statements of Financial Condition (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Mortgage-backed securities, fair value option (in Dollars)	$ 4,678	$ 7,119
Mortgage-backed securities, assets pledged (in Dollars)	464,626	556,520
Other securities, fair value option (in Dollars)	27,915	30,163
Other securities, assets pledged (in Dollars)	57,562
Borrowed funds, fair value option (in Dollars)	$ 28,771	$ 29,570
Preferred stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	31,530,595	31,530,595
Common stock, shares outstanding	29,403,823	30,123,252
Treasury stock, shares	2,126,772	1,407,343

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

9. 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:

	2014					2013
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
	(Dollars in thousands)
Repurchase agreements - fixed rate:
Due in 2014	$	-		-	%	$	9,300		1.27	%
Due in 2016		38,000		1.92			68,000		3.27
Due in 2017		38,000		4.16			38,000		4.16
Due in 2020		40,000		3.45			40,000		3.45
Total repurchase agreements - fixed rate		116,000		3.18			155,300		3.41
FHLB-NY advances - fixed rate:
Due in 2014		-		-			89,500		0.63
Due in 2015		185,551		0.80			166,732		1.21
Due in 2016		315,847		1.15			331,062		1.20
Due in 2017		305,525		2.12			174,160		2.79
Due in 2018		74,798		1.29			65,798		1.24
Due in 2019		30,000		1.83			-		-
Total FHLB-NY advances - fixed rate		911,721		1.44			827,252		1.48
Junior subordinated debentures - adjustable rate
Due in 2037		28,771		5.96			29,570		5.67
Total borrowings	$	1,056,492		1.75	%	$	1,012,122		1.90	%

During 2014, $66.9 million in long-term FHLB-NY advances at an average cost of 2.98% and $30.0 million in repurchase agreements at an average cost of 4.98% were prepaid while incurring a prepayment penalty totaling $5.2 million.

Borrowings which have call provisions are summarized as follows at December 31, 2014:

	Amount		Rate			Maturity Date	Call Date
	(Dollars in thousands)
FHLB-NY advances - fixed rate	$	20,000		4.43	%	10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		30,000		4.60		10/10/2017	1/9/2015
FHLB-NY advances - fixed rate		10,000		4.13		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.32		9/18/2017	3/17/2015
FHLB-NY advances - fixed rate		10,000		4.15		9/18/2017	3/18/2015
Repurchase agreements - fixed rate		20,000		2.20		7/12/2016	1/12/2015
Repurchase agreements - fixed rate		18,000		4.28		10/18/2017	1/20/2015
Repurchase agreements - fixed rate		18,000		1.60		4/19/2016	1/20/2015
Repurchase agreements - fixed rate		20,000		4.05		9/19/2017	3/19/2015
Repurchase agreements - fixed rate		10,000		3.08		8/1/2020	2/1/2016
Repurchase agreements - fixed rate		10,000		3.19		2/1/2020	2/1/2016
Repurchase agreements - fixed rate		20,000		3.76		8/1/2020	2/1/2016

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:

	2014			2013			2012
	(Dollars in thousands)
Book value of collateral	$	142,925		$	199,447		$	228,620
Estimated fair value of collateral		142,925			199,447			228,620
Average balance of outstanding agreements during the year		137,824			172,944			185,300
Maximum balance of outstanding agreements at a month end during the year		155,300			185,300			185,300
Average interest rate of outstanding agreements during the year (1)		5.37	%		3.42	%		3.62	%

1. As discussed above, during the year ended December 31, 2014, the Company prepaid $30.0 million in FHLB-NY repurchase agreements at an average cost of 4.98% while incurring a prepayment penalty totaling $2.7 million.  Excluding the prepayment penalty, the average interest rate of agreements during the year ended December 31, 2014 was 3.40%.

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

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

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

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

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

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments under the Postretirement Plan, Which Reflect Expected Future Service, Are Expected to be Paid (Retirement Plan [Member], USD $)	Dec. 31, 2014
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Following Benefit Payments under the Postretirement Plan, Which Reflect Expected Future Service, Are Expected to be Paid [Line Items]
2015	$ 1,094,000
2016	1,145,000
2017	1,161,000
2018	1,161,000
2019	1,181,000
2020 – 2024	$ 6,490,000

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Note 11 - Stock-Based Compensation (Details) - Non-Full Value Awards, all of Which Have Been Granted as Stock Options (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Non-Full Value Awards, all of Which Have Been Granted as Stock Options [Abstract]
Shares	154,915		306,630
Weighted-Average Exercise Price	$ 15.19		$ 16.02
Weighted-Average Remaining Contractual Term	3 years 73 days
Aggregate Intrinsic Value $(000)	$ 787
Exercisable shares at December 31, 2014	154,915
Exercisable shares at December 31, 2014	$ 15.19
Exercisable shares at December 31, 2014	3 years 73 days
Exercisable shares at December 31, 2014	$ 787	[1]
Exercised	(150,115)
Exercised	$ 16.83
Forfeited	(1,600)
Forfeited	$ 19.37

[1] * The intrinsic value of a stock option is the difference between the market value of the underlying stock and the exercise price of the option.

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Note 11 - Stock-Based Compensation (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 11 - Stock-Based Compensation (Details) [Line Items]
Allocated Share-based Compensation Expense	$ 4,300,000	$ 3,400,000	$ 3,300,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	1,700,000	1,300,000	1,300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares)	9,631
Restricted Stock Units (RSUs) [Member] | Twenty Fourteen Omnibus Incentive Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	4,300,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 36 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	4,400,000	2,900,000	3,300,000
Restricted Stock Units (RSUs) [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in Shares)	266,895	246,045	230,675
Phantom Share Units (PSUs) [Member] | Prior to January1, 2009 [Member] | Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Phantom Share Units (PSUs) [Member] | Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period	1 year
Annually [Member] | Officer [Member] | Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	20.00%
Vested Upon Change in Control [Member] | Officer [Member] | Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%
Minimum [Member] | Twenty Fourteen Omnibus Incentive Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Maximum [Member] | Twenty Fourteen Omnibus Incentive Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	10 years
Officer [Member] | Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Twenty Fourteen Omnibus Incentive Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	1,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)	1,097,200
Phantom Stock Plan [Member]
Note 11 - Stock-Based Compensation (Details) [Line Items]
Allocated Share-based Compensation Expense	17,000	343,000	155,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 35,000	$ 9,000	$ 12,000

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Note 15 - Commitments and Contingencies (Details) - The Company’s Minimum Annual Rental Payments for Bank Premises Due Under Non-Cancelable Leases: (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
The Company’s Minimum Annual Rental Payments for Bank Premises Due Under Non-Cancelable Leases: [Abstract]
2015	$ 4,440
2016	4,513
2017	4,383
2018	4,448
2019	5,332
Thereafter	30,687
Total minimum payments required	$ 53,803

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Note 18 - Fair Value of Financial Instruments (Details) - Quantitative Information About Non-Recurring Level 3 Fair Value of Financial Instruments and the Fair Value Measurements (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2012
Assets:
Fair Value (in Dollars)	28,500	$ 26,954
Fair Value (in Dollars)	28,500	26,954
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	7.30%
Range (Weighted Average)	0.50%
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	8.50%
Range (Weighted Average)	81.70%
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(7.80%)
Range (Weighted Average)	(21.30%)
Impaired Loans [Member] | Income Approach Valuation Technique [Member]
Assets:
Fair Value (in Dollars)	6,981
Fair Value (in Dollars)	6,981
Impaired Loans [Member] | Sales Approach Valuation Technique [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	1.80%
Range (Weighted Average)	(41.50%)
Impaired Loans [Member] | Sales Approach Valuation Technique [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	89.40%
Range (Weighted Average)	40.00%
Impaired Loans [Member] | Sales Approach Valuation Technique [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(20.00%)
Impaired Loans [Member] | Sales Approach Valuation Technique [Member]
Assets:
Fair Value (in Dollars)	6,935
Fair Value (in Dollars)	6,935
Impaired Loans [Member] | Blended Income and Sales Approach [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	5.80%
Range (Weighted Average)	0.90%
Range (Weighted Average)	(55.00%)
Impaired Loans [Member] | Blended Income and Sales Approach [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	11.00%
Range (Weighted Average)	74.40%
Range (Weighted Average)	25.00%
Impaired Loans [Member] | Blended Income and Sales Approach [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(8.00%)
Range (Weighted Average)	(30.00%)
Impaired Loans [Member] | Blended Income and Sales Approach [Member]
Assets:
Fair Value (in Dollars)	8,258
Fair Value (in Dollars)	8,258
Other Real Estate Owned [Member] | Income Approach Valuation Technique [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	9.00%
Range (Weighted Average)	0.90%
Other Real Estate Owned [Member] | Income Approach Valuation Technique [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	12.00%
Range (Weighted Average)	4.90%
Other Real Estate Owned [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(9.10%)
Range (Weighted Average)	(1.00%)
Other Real Estate Owned [Member] | Income Approach Valuation Technique [Member]
Assets:
Fair Value (in Dollars)	4,768
Fair Value (in Dollars)	4,768
Other Real Estate Owned [Member] | Sales Approach Valuation Technique [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	0.00%
Range (Weighted Average)	(11.90%)
Other Real Estate Owned [Member] | Sales Approach Valuation Technique [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	36.90%
Range (Weighted Average)	15.00%
Other Real Estate Owned [Member] | Sales Approach Valuation Technique [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(9.60%)
Other Real Estate Owned [Member] | Sales Approach Valuation Technique [Member]
Assets:
Fair Value (in Dollars)	587
Fair Value (in Dollars)	587
Other Real Estate Owned [Member] | Blended Income and Sales Approach [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	7.50%
Range (Weighted Average)	0.00%
Range (Weighted Average)	(25.00%)
Other Real Estate Owned [Member] | Blended Income and Sales Approach [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	8.00%
Range (Weighted Average)	6.20%
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Blended Income and Sales Approach [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(7.70%)
Range (Weighted Average)	(3.00%)
Other Real Estate Owned [Member] | Blended Income and Sales Approach [Member]
Assets:
Fair Value (in Dollars)	971
Fair Value (in Dollars)	971

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Note 13 - Stockholders' Equity (Details) - Amounts Reclassified Out of Accumulated Other Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total income tax provision	$ 6,988	$ 7,060	$ 7,598	$ 6,927	$ 6,458	$ 6,024	$ 6,155	$ 4,319	$ 28,573		$ 22,956		$ 21,847
Net of tax	11,057	11,201	11,685	10,296	11,948	9,421	9,627	6,756	44,239		37,752		34,331
OTTI charges											1,419		776
Tax expense	18,045	18,261	19,283	17,223	18,406	15,445	15,782	11,075	72,812		60,708		56,178
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains (losses) on available for sale securities									2,875		3,021
Total income tax provision									(1,241)		(1,321)
Net of tax									1,634		1,700
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense									(700)	[1]	(1,237)	[1]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Prior Service Credits [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other expense									45	[1]	46	[1]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total income tax provision									311		521
Net of tax									(344)		(670)
Tax expense									(655)		(1,191)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other-than-Temporary Impairment [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total income tax provision											621
Net of tax											(798)
OTTI charges											$ (1,419)

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements "Pension and Other Postretirement Benefit Plans").

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Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014	Feb. 28, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Flushing Financial Corporation
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding			29,493,510
Entity Public Float		$ 589,993,000
Amendment Flag	false
Entity Central Index Key	0000923139
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

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Note 18 - Fair Value of Financial Instruments (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 18 - Fair Value of Financial Instruments (Details) [Line Items]
Financial Assets At Fair Value Option	$ 32,600,000
Financial Liabilities At Fair Value Option	28,800,000
Financial Assets, Fair Value Option Election During Period	5,000,000
Proceeds From Sale of Financial Assets	6,200,000	8,100,000
Fair Value, Option, Changes in Fair Value, Gain (Loss)	(2,568,000)	(2,521,000)	55,000
Financial Liabilites At Fair Value Option, Contractual Principal	61,900,000	61,900,000
Financial Liabilities At Fair Value Option, Accrued Interest Payable	100,000	100,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3		6,100,000
Nonaccruing Collateral Dependent Loans - Percent Of The Appraised Or Internally Estimated Value Of The Property [Member]
Note 18 - Fair Value of Financial Instruments (Details) [Line Items]
Fair Value Inputs, Discount Rate	85.00%
Interest Rate Swaps [Member]
Note 18 - Fair Value of Financial Instruments (Details) [Line Items]
Fair Value, Option, Changes in Fair Value, Gain (Loss)	$ (4,000,000)	$ 3,600,000	$ (2,300,000)

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Note 10 - Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

10. Income Taxes

Flushing Financial Corporation files consolidated Federal and combined New York State and New York City income tax returns with its subsidiaries, with the exception of the trusts, which file separate Federal income tax returns as trusts, and FPFC, which files a separate Federal income tax return as a real estate investment trust. Additionally, the Bank files New Jersey State tax returns. The Company remains subject to examination for its Federal, New York State and New York City income tax returns for the years ending on or after December 31, 2011.  The Bank remains subject to examination for its New Jersey income tax returns for the years ending on or after December 31, 2011. During the three years ended December 31, 2014, the Company did not recognize any material amounts of interest or penalties on income taxes.

Income tax provisions are summarized as follows for the years ended December 31:

	2014		2013			2012
	(In thousands)
Federal:
Current	$	18,052	$	17,808		$	17,330
Deferred		2,860		(464	)		(590	)
Total federal tax provision		20,912		17,344			16,740
State and Local:
Current		6,369		5,828			5,321
Deferred		1,292		(216	)		(214	)
Total state and local tax provision		7,661		5,612			5,107
Total income tax provision	$	28,573	$	22,956		$	21,847

The income tax provision in the Consolidated Statements of Income has been provided at effective rates of 39.2%, 37.8% and 38.9% for the years ended December 31, 2014, 2013 and 2012, respectively. The effective rates differ from the statutory federal income tax rate as follows for the years ended December 31:

	2014					2013					2012
	(Dollars in thousands)
Taxes at federal statutory rate	$	25,484		35.0	%	$	21,248		35.0	%	$	19,662		35.0	%
Increase (reduction) in taxes resulting from:
State and local income tax, net of Federal income tax benefit		4,980		6.8			3,648		6.0			3,320		5.9
Other		(1,891	)	(2.6	)		(1,940	)	(3.2	)		(1,135	)	(2.0	)
Taxes at effective rate	$	28,573		39.2	%	$	22,956		37.8	%	$	21,847		38.9	%

The components of the income taxes attributable to income from operations and changes in equity are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Income from operations	$	28,573		$	22,956		$	21,847
Equity:
Change in fair value of securities available for sale		9,200			(21,309	)		5,577
Current year actuarial gains (losses) of postretirement plans		(2,880	)		2,527			(340	)
Amortization of net actuarial losses and prior service credits		(311	)		521			436
Compensation expense for tax purposes in (excess) or less than that recognized for financial reporting purposes		(846	)		(443	)		303
Total income taxes	$	33,736		$	4,252		$	27,823

The components of the net deferred tax assets (liabilities) are as follows at December 31:

	2014		2013
	(In thousands)
Deferred tax asset:
Postretirement benefits	$	5,407	$	4,880
Allowance for loan losses		11,007		13,895
Stock based compensation		2,821		2,322
Depreciation		1,740		1,400
Unrealized loss on securities available for sale		-		6,612
Fair value adjustment on financial assets carried at fair value		-		2,470
Derivative financial instruments		1,025		-
Other-than-temporary impairment charges		-		1,584
Adjustment required to recognize funded status of postretirement pension plans		4,787		2,218
Other		3,023		2,336
Deferred tax asset		29,810		37,717
Deferred tax liability:
Valuation differences resulting from acquired assets and liabilities		2,764		2,805
Fair value adjustment on financial assets carried at fair value		132		-
Fair value adjustment on financial liabilities carried at fair value		14,480		14,910
Unrealized gains on securities available for sale		2,588		-
Other		2,525		1,898
Deferred tax liability		22,489		19,613
Net deferred tax asset included in other assets	$	7,321	$	18,104

The Company has recorded a deferred tax asset of $29.8 million. This represents the anticipated net federal, state and local tax benefits expected to be realized in future years upon the utilization of the underlying tax attributes comprising this balance. The Company has reported taxable income for federal, state, and local tax purposes in each of the past three years. In management’s opinion, in view of the Company’s previous, current and projected future earnings trend, the probability that some of the Company’s $22.5 million deferred tax liability can be used to offset a portion of the deferred tax asset, as well as certain tax planning strategies, it is more likely than not that the deferred tax asset will be fully realized.  Accordingly, no valuation allowance was deemed necessary for the deferred tax asset at December 31, 2014 and 2013.

The Company does not have uncertain tax positions that are deemed material. The Company’s policy is to recognize interest and penalties on income taxes in operating expenses. During the three years ended December 31, 2014, the Company did not recognize any material amounts of interest or penalties on income taxes.

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Note 8 - Deposits (Details) - Scheduled Remaining Maturities of Certificate of Deposit Accounts (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Note 8 - Deposits (Details) - Scheduled Remaining Maturities of Certificate of Deposit Accounts [Line Items]
Total certificate of deposit accounts	$ 1,305,823	$ 1,120,955
Certificates of Deposit [Member]
Note 8 - Deposits (Details) - Scheduled Remaining Maturities of Certificate of Deposit Accounts [Line Items]
Within 12 months	455,295	459,016
More than 12 months to 24 months	269,840	318,215
More than 24 months to 36 months	229,931	158,050
More than 36 months to 48 months	176,876	51,508
More than 48 months to 60 months	148,424	108,489
More than 60 months	25,457	25,677
Total certificate of deposit accounts	$ 1,305,823	$ 1,120,955

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Note 10 - Income Taxes (Details) - The Components of the Net Deferred Tax Assets (Liabilities) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred tax asset:
Postretirement benefits	$ 5,407	$ 4,880
Allowance for loan losses	11,007	13,895
Stock based compensation	2,821	2,322
Depreciation	1,740	1,400
Unrealized loss on securities available for sale		6,612
Fair value adjustment on financial assets carried at fair value		2,470
Derivative financial instruments	1,025
Other-than-temporary impairment charges		1,584
Adjustment required to recognize funded status of postretirement pension plans	4,787	2,218
Other	3,023	2,336
Deferred tax asset	29,810	37,717
Deferred tax liability:
Valuation differences resulting from acquired assets and liabilities	2,764	2,805
Fair value adjustment on financial assets carried at fair value	132
Fair value adjustment on financial liabilities carried at fair value	14,480	14,910
Unrealized gains on securities available for sale	2,588
Other	2,525	1,898
Deferred tax liability	22,489	19,613
Net deferred tax asset included in other assets	$ 7,321	$ 18,104

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Interest and dividend income
Interest and fees on loans	$ 170,327	$ 171,309	$ 181,486
Interest and dividends on securities:
Interest	25,969	28,310	31,306
Dividends	753	828	855
Other interest income	79	79	67
Total interest and dividend income	197,128	200,526	213,714
Interest expense
Deposits	30,044	32,037	40,382
Other interest expense	24,697	22,826	22,893
Total interest expense	54,741	54,863	63,275
Net interest income	142,387	145,663	150,439
Provision (benefit) for loan losses	(6,021)	13,935	21,000
Net interest income after provision for loan losses	148,408	131,728	129,439
Non-interest income
Other-than-temporary impairment ("OTTI") charge		(1,419)	(3,138)
Less: Non-credit portion of OTTI charge recorded in Other Comprehensive Income, before taxes			2,362
Net OTTI charge recognized in earnings		(1,419)	(776)
Banking services fee income	3,394	3,687	4,007
Net (loss) gain on sale of loans held for sale		(108)	(9)
Net gain on sale of loans	67	284	31
Net gain on sale of securities	2,875	3,021	47
Net (loss) gain from fair value adjustments	(2,568)	(2,521)	55
Federal Home Loan Bank of New York stock dividends	1,898	1,663	1,507
Bank owned life insurance	3,050	3,363	2,790
Other income	1,527	1,586	1,413
Total non-interest income	10,243	9,556	9,065
Non-interest expense
Salaries and employee benefits	48,998	44,397	42,503
Occupancy and equipment	7,998	7,646	7,807
Professional services	5,982	5,210	6,108
FDIC deposit insurance	2,707	3,206	4,186
Data processing	4,194	4,238	4,101
Depreciation and amortization of premises and equipment	2,813	2,953	3,207
Other real estate owned / foreclosure expense	1,338	2,292	2,964
Other operating expenses	11,809	10,634	11,450
Total non-interest expense	85,839	80,576	82,326
Income before income taxes	72,812	60,708	56,178
Provision for income taxes
Federal	20,912	17,344	16,740
State and local	7,661	5,612	5,107
Total provision for income taxes	28,573	22,956	21,847
Net income	$ 44,239	$ 37,752	$ 34,331
Basic earnings per common share (in Dollars per share)	$ 1.49	$ 1.26	$ 1.13
Diluted earnings per common share (in Dollars per share)	$ 1.48	$ 1.26	$ 1.13

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Note 4 - Loans Held for Sale

12 Months Ended

Dec. 31, 2014

Loans Held For Sale [Abstract]

Loans Held For Sale [Text Block]

4. Loans held for sale

The Company has implemented a strategy of selling certain delinquent and non-performing loans. Once the Company has decided to sell a loan, the sale usually will close in a short period of time, generally within the same quarter.  Loans designated held for sale are reclassified from loans held for investment to loans held for sale. Terms of sale include cash due upon the closing of the sale, no contingencies or recourse to the Company and servicing is released to the buyer.

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2014
(Dollars in thousands)	Loans sold		Proceeds		Net (charge-offs) recoveries			Net gain
Multi-family residential		12	$	5,759	$	(80	)	$	9
Commercial real estate		6		4,635		295			8
One-to-four family - mixed-use property		14		5,399		122			50
Commercial business and other		2		64		20			-
Total		34	$	15,857	$	357		$	67

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2013
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		21	$	11,420	$	(1,024	)	$	99
Commercial real estate		9		5,488		(703	)		6
One-to-four family - mixed-use property		39		11,427		(2,791	)		(52	)
Construction		2		5,066		(164	)		-
Commercial business and other		1		-		(21	)		-
Total		72	$	33,401	$	(4,703	)	$	53

The above table does not include one performing commercial real estate loan for $2.4 million which was sold for a net gain of $0.2 million during the year ended December 31, 2013.

The following table shows delinquent and non-performing loans sold during the period indicated:

	For the year ended December 31, 2012
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		34	$	21,429	$	(2,974	)	$	(46	)
Commercial real estate		11		5,869		(572	)		-
One-to-four family - mixed-use property		25		8,270		(1,927	)		-
Construction		3		2,540		(57	)		-
Commercial business and other		4		6,115		(136	)		8
Total		77	$	44,223	$	(5,666	)	$	(38	)

The above table does not include $0.7 million of performing Small Business Administration loans that were sold for a net gain of $60,000 during the year ended December 31, 2012.

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Note 3 - Loans

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3. Loans

The composition of loans is as follows at December 31:

	2014		2013
	(In thousands)
Multi-family residential	$	1,923,460	$	1,712,039
Commercial real estate		621,569		512,552
One-to-four family ― mixed-use property		573,779		595,751
One-to-four family ― residential		187,572		193,726
Co-operative apartments		9,835		10,137
Construction		5,286		4,247
Small Business Administration		7,134		7,792
Taxi medallion		22,519		13,123
Commercial business and other		447,500		373,641
Gross loans		3,798,654		3,423,008
Unearned loan fees and deferred costs, net		11,719		11,170
Total loans	$	3,810,373	$	3,434,178

The total amount of loans on non-accrual status was $31.9 million and $48.0 million at December 31, 2014 and 2013, respectively.  The total amount of loans classified as impaired, which includes all loans on non-accrual status, was $56.5 million and $81.8 million at December 31, 2014 and 2013, respectively. We generally adjust the carrying value of collateral dependent impaired loans to their fair value with a charge to the allowance for loan losses. The average balance of impaired loans was $65.8 million and $95.0 million for 2014 and 2013, respectively.

The Company may restructure a loan to enable a borrower to continue making payments when it is deemed to be in our best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. The Company classifies these loans as a TDR.

There were no loans modified and classified as TDR during the year ended December 31, 2014.

The following table shows loans modified and classified as TDR during the year ended December 31, 2013:

	For the year ended December 31, 2013
(Dollars in thousands)	Number		Balance		Modification description
Multi-family residential		2	$	698	Received a below market interest rate and the loan amortization was extended
Commercial real estate		1		273	Received a below market interest rate and the loan amortization was extended
One-to-four family - mixed-use property		1		390	Received a below market interest rate and the loan amortization was extended
Commercial business and other		2		687	Received a below market interest rate and the loan amortization was extended
Total		6	$	2,048

The recorded investment of each of the loans modified and classified to a TDR, presented in the table above, was unchanged as there was no principal forgiven in any of these modifications.

The following table shows our recorded investment for loans classified as TDR that are performing according to their restructured terms at the periods indicated:

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Multi-family residential		10	$	3,034		10	$	3,087
Commercial real estate		3		2,373		3		2,407
One-to-four family - mixed-use property		7		2,381		8		2,692
One-to-four family - residential		1		354		1		364
Construction		-		-		1		746
Commercial business and other		4		2,249		5		4,406
Total performing troubled debt restructured		25	$	10,391		28	$	13,702

During the year ended December 31, 2014, three TDR loans totaling $2.7 million were transferred to non-performing status, which resulted in these loans being included in non-performing loans. Two of these loans, subsequent to being transferred to non-performing loans, were paid in full during the year ended December 31, 2014.  Additionally, during the year ended December 31, 2014, one loan for $0.4 million was transferred from performing non-accrual status to performing accrual status as it has made timely payments for six consecutive months. During the year ended December 31, 2013, no TDR loans were transferred to non-performing status.

The following table shows our recorded investment for loans classified as TDR that are not performing according to their restructured terms at the periods indicated:

	December 31, 2014				December 31, 2013
(Dollars in thousands)	Number of contracts		Recorded investment		Number of contracts		Recorded investment
Commercial real estate		1	$	2,252		1	$	2,332
One-to-four family - mixed-use property		1		187		-		-
Total troubled debt restructurings that subsequently defaulted		2	$	2,439		1	$	2,332

The following table shows our non-performing loans at the periods indicated:

	At December 31,
(In thousands)	2014		2013
Loans ninety days or more past due and still accruing:
Multi-family residential	$	676	$	52
Commercial real estate		820		-
One-to-four family mixed-use property		405		-
One-to-four family residential		14		15
Commercial Business and other		386		539
Total		2,301		606
Non-accrual mortgage loans:
Multi-family residential		6,878		13,297
Commercial real estate		5,689		9,962
One-to-four family mixed-use property		6,936		9,063
One-to-four family residential		11,244		13,250
Co-operative apartments		-		57
Total		30,747		45,629
Non-accrual non-mortgage loans:
Commercial Business and other		1,143		2,348
Total		1,143		2,348
Total non-accrual loans		31,890		47,977
Total non-accrual loans and ninety days or more past due and still accruing	$	34,191	$	48,583

The following is a summary of interest foregone on non-accrual loans and loans classified as TDR for the years ended December 31:

	2014		2013		2012
	(In thousands)
Interest income that would have been recognized had the loans performed in accordance with their original terms	$	2,919	$	4,656	$	9,026
Less: Interest income included in the results of operations		796		1,213		1,692
Total foregone interest	$	2,123	$	3,443	$	7,334

The following table shows an age analysis of our recorded investment in loans at December 31, 2014:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	7,721	$	1,729	$	7,554	$	17,004	$	1,906,456	$	1,923,460
Commercial real estate		1,612		1,903		6,510		10,025		611,544		621,569
One-to-four family - mixed-use property		10,408		1,154		7,341		18,903		554,876		573,779
One-to-four family - residential		1,751		2,244		11,051		15,046		172,526		187,572
Co-operative apartments		-		-		-		-		9,835		9,835
Construction loans		3,000		-		-		3,000		2,286		5,286
Small Business Administration		90		-		-		90		7,044		7,134
Taxi medallion		-		-		-		-		22,519		22,519
Commercial business and other		6		1,585		740		2,331		445,169		447,500
Total	$	24,588	$	8,615	$	33,196	$	66,399	$	3,732,255	$	3,798,654

The following table shows an age analysis of our recorded investment in loans at December 31, 2013:

(in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans
	(in thousands)
Multi-family residential	$	14,101	$	3,684	$	13,349	$	31,134	$	1,680,905	$	1,712,039
Commercial real estate		5,029		7,699		9,962		22,690		489,862		512,552
One-to-four family - mixed-use property		14,017		1,099		9,063		24,179		571,572		595,751
One-to-four family - residential		3,828		518		12,968		17,314		176,412		193,726
Co-operative apartments		99		-		144		243		9,894		10,137
Construction loans		-		-		-		-		4,247		4,247
Small Business Administration		106		-		-		106		7,686		7,792
Taxi medallion		-		-		-		-		13,123		13,123
Commercial business and other		187		2		1,752		1,941		371,700		373,641
Total	$	37,367	$	13,002	$	47,238	$	97,607	$	3,325,401	$	3,423,008

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2014:

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion		Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-	$	5,320		$	31,776
Charge-off's		(1,161	)		(325	)		(423	)		(103	)		-			-			(49	)		-		(381	)		(2,442	)
Recoveries		150			481			608			269			7			-			92			-		176			1,783
Provision (benefit)		(2,246	)		(913	)		(673	)		(555	)		(111	)		(402	)		(222	)		11		(910	)		(6,021	)
Ending balance	$	8,827		$	4,202		$	5,840		$	1,690		$	-		$	42		$	279		$	11	$	4,205		$	25,096
Ending balance: individually evaluated for impairment	$	286		$	21		$	579		$	54		$	-		$	-		$	-		$	-	$	154		$	1,094
Ending balance: collectively evaluated for impairment	$	8,541		$	4,181		$	5,261		$	1,636		$	-		$	42		$	279		$	11	$	4,051		$	24,002
Financing Receivables:
Ending balance	$	1,923,460		$	621,569		$	573,779		$	187,572		$	9,835		$	5,286		$	7,134		$	22,519	$	447,500		$	3,798,654
Ending balance: individually evaluated for impairment	$	13,260		$	9,473		$	15,120		$	13,170		$	-		$	-		$	-		$	-	$	5,492		$	56,515
Ending balance: collectively evaluated for impairment	$	1,910,200		$	612,096		$	558,659		$	174,402		$	9,835		$	5,286		$	7,134		$	22,519	$	442,008		$	3,742,139

The following table shows the activity in the allowance for loan losses for the year ended December 31, 2013:

(in thousands)	Multi-family residential			Commercial real estate			One-to-four family - mixed-use property			One-to-four family - residential			Co-operative apartments			Construction loans			Small Business Administration			Taxi medallion			Commercial business and other			Total
Allowance for credit losses:
Beginning balance	$	13,001		$	5,705		$	5,960		$	1,999		$	46		$	66		$	505		$	7		$	3,815		$	31,104
Charge-off's		(3,585	)		(1,051	)		(4,206	)		(701	)		(108	)		(2,678	)		(457	)		-			(2,057	)		(14,843	)
Recoveries		541			324			266			272			4			-			87			-			86			1,580
Provision (benefit)		2,127			(19	)		4,308			509			162			3,056			323			(7	)		3,476			13,935
Ending balance	$	12,084		$	4,959		$	6,328		$	2,079		$	104		$	444		$	458		$	-		$	5,320		$	31,776
Ending balance: individually evaluated for impairment	$	312		$	164		$	875		$	58		$	-		$	17		$	-		$	-		$	222		$	1,648
Ending balance: collectively evaluated for impairment	$	11,772		$	4,795		$	5,453		$	2,021		$	104		$	427		$	458		$	-		$	5,098		$	30,128
Financing Receivables:
Ending balance	$	1,712,039		$	512,552		$	595,751		$	193,726		$	10,137		$	4,247		$	7,792		$	13,123		$	373,641		$	3,423,008
Ending balance: individually evaluated for impairment	$	21,757		$	19,757		$	16,939		$	14,390		$	59		$	746		$	-		$	-		$	8,120		$	81,768
Ending balance: collectively evaluated for impairment	$	1,690,282		$	492,795		$	578,812		$	179,336		$	10,078		$	3,501		$	7,792		$	13,123		$	365,521		$	3,341,240

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	10,481	$	11,551	$	-	$	14,168	$	194
Commercial real estate		7,100		7,221		-		11,329		51
One-to-four family mixed-use property		12,027		13,381		-		12,852		321
One-to-four family residential		12,816		15,709		-		13,015		103
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		285		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,779		3,149		-		3,428		137
Total loans with no related allowance recorded		45,203		51,011		-		55,077		806
With an allowance recorded:
Mortgage loans:
Multi-family residential		2,779		2,779		286		2,936		149
Commercial real estate		2,373		2,373		21		3,242		167
One-to-four family mixed-use property		3,093		3,093		579		3,249		170
One-to-four family residential		354		354		54		358		14
Co-operative apartments		-		-		-		-		-
Construction		-		-		-		187		-
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		2,713		2,713		154		3,149		115
Total loans with an allowance recorded		11,312		11,312		1,094		13,121		615
Total Impaired Loans:
Total mortgage loans	$	51,023	$	56,461	$	940	$	61,621	$	1,169
Total non-mortgage loans	$	5,492	$	5,862	$	154	$	6,577	$	252

The following table shows our recorded investment, unpaid principal balance and allocated allowance for loan losses, average recorded investment and interest income recognized for loans that were considered impaired at or for the year ended December 31, 2013:

	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related allowance recorded:
Mortgage loans:
Multi-family residential	$	18,709	$	20,931	$	-	$	22,091	$	402
Commercial real estate		16,721		17,405		-		19,846		266
One-to-four family mixed-use property		12,748		15,256		-		13,916		319
One-to-four family residential		14,026		17,527		-		14,529		125
Co-operative apartments		59		147		-		189		-
Construction		-		118		-		4,014		-
Non-mortgage loans:
Small Business Administration		-		-		-		247		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		3,225		5,527		-		5,309		268
Total loans with no related allowance recorded		65,488		76,911		-		80,141		1,380
With an allowance recorded:
Mortgage loans:
Multi-family residential		3,048		3,049		312		2,892		170
Commercial real estate		3,036		3,102		164		6,388		194
One-to-four family mixed-use property		4,191		4,221		875		4,041		228
One-to-four family residential		364		364		58		368		15
Co-operative apartments		-		-		-		-		-
Construction		746		746		17		1,929		18
Non-mortgage loans:
Small Business Administration		-		-		-		-		-
Taxi Medallion		-		-		-		-		-
Commercial Business and other		4,895		4,894		222		4,354		239
Total loans with an allowance recorded		16,280		16,376		1,648		19,972		864
Total Impaired Loans:
Total mortgage loans	$	73,648	$	82,866	$	1,426	$	90,203	$	1,737
Total non-mortgage loans	$	8,120	$	10,421	$	222	$	9,910	$	507

In accordance with our policy and the current regulatory guidelines, we designate loans as “Special Mention,” which are considered “Criticized Loans,” and “Substandard,” “Doubtful,” or “Loss,” which are considered “Classified Loans”.  If a loan does not fall within one of the previous mentioned categories then the loan would be considered “Pass.” These loan designations are updated quarterly.  We designate a loan as Substandard when a well-defined weakness is identified that jeopardizes the orderly liquidation of the debt. We designate a loan Doubtful when it displays the inherent weakness of a Substandard loan with the added provision that collection of the debt in full, on the basis of existing facts, is highly improbable. We designate a loan as Loss if it is deemed the debtor is incapable of repayment.  The Company does not hold any loans designated as loss, as loans that are designated as Loss are charged to the Allowance for Loan Losses. Loans that are non-accrual are designated as Substandard, Doubtful or Loss. We designate a loan as Special Mention if the asset does not warrant classification within one of the other classifications, but does contain a potential weakness that deserves closer attention.

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2014:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	6,494	$	10,226	$	-	$	-	$	16,720
Commercial real estate		5,453		7,100		-		-		12,553
One-to-four family - mixed-use property		5,254		12,499		-		-		17,753
One-to-four family - residential		2,352		13,056		-		-		15,408
Co-operative apartments		623		-		-		-		623
Construction loans		-		-		-		-		-
Small Business Administration		479		-		-		-		479
Commercial business and other		2,841		3,779		-		-		6,620
Total loans	$	23,496	$	46,660	$	-	$	-	$	70,156

The following table sets forth the recorded investment in loans designated as Criticized or Classified at December 31, 2013:

(In thousands)	Special Mention		Substandard		Doubtful		Loss		Total
Multi-family residential	$	9,940	$	19,089	$	-	$	-	$	29,029
Commercial real estate		13,503		16,820		-		-		30,323
One-to-four family - mixed-use property		7,992		14,898		-		-		22,890
One-to-four family - residential		2,848		14,026		-		-		16,874
Co-operative apartments		-		59		-		-		59
Construction loans		746		-		-		-		746
Small Business Administration		310		-		-		-		310
Commercial business and other		7,314		8,450		50		-		15,814
Total loans	$	42,653	$	73,342	$	50	$	-	$	116,045

The following table shows the activity in the allowance for loan losses for the years ended December 31:

	2014			2013			2012
	(In thousands)
Balance, beginning of year	$	31,776		$	31,104		$	30,344
Provision (benefit) for loan losses		(6,021	)		13,935			21,000
Charge-offs		(2,442	)		(14,843	)		(21,269	)
Recoveries		1,783			1,580			1,029
Balance, end of year	$	25,096		$	31,776		$	31,104

The following are net loan charge-offs (recoveries) by loan type for the years ended December 31:

	2014			2013		2012
	(In thousands)
Multi-family residential	$	1,011		$	3,044	$	5,872
Commercial real estate		(156	)		727		2,439
One-to-four family ― mixed-use property		(185	)		3,940		3,928
One-to-four family ― residential		(166	)		429		1,554
Co-operative apartments		(7	)		104		62
Construction		-			2,678		4,591
Small Business Administration		(43	)		370		237
Commercial business and other		205			1,971		1,557
Total net loan charge-offs	$	659		$	13,263	$	20,240

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Note 15 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

15. Commitments and Contingencies

Commitments:

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and lines of credit.  The instruments involve, to varying degrees, elements of credit and market risks in excess of the amount recognized in the consolidated financial statements.

The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for loan commitments and lines of credit is represented by the contractual amounts of these instruments.

Commitments to extend credit (principally real estate mortgage loans) and lines of credit (principally business lines of credit and home equity lines of credit) amounted to $68.3 million and $190.4 million, respectively, at December 31, 2014. Included in these commitments were $11.6 million of fixed-rate commitments at a weighted average rate of 4.20% and $247.1 million of adjustable-rate commitments with a weighted average rate, as of December 31, 2014, of 3.65%. Since generally all of the loan commitments are expected to be drawn upon, the total loan commitments approximate future cash requirements, whereas the amounts of lines of credit may not be indicative of the Company’s future cash requirements. The loan commitments generally expire in 90 days, while construction loan lines of credit mature within eighteen months and home equity lines of credit mature within ten years. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments to extend credit are legally binding agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates and require payment of a fee. The Company evaluates each customer’s creditworthiness on a case-by-case basis. Collateral held consists primarily of real estate.

The Bank collateralized a portion of its deposits with letters of credit issued by FHLB-NY.  At December 31, 2014, there were $499.1 million of letters of credit outstanding.   The letters of credit are collateralized by mortgage loans pledged by the Bank.

The Trusts issued capital securities with a par value of $61.9 million in June and July 2007. The Holding Company has guaranteed the payment of the Trusts’ obligations under these capital securities.

During the year ended December 31, 2014, the Company announced it had entered into an agreement to lease approximately 90,000 square feet of space in Uniondale, New York to serve as the Company’s new corporate headquarters. Additionally, the Company intends to use a portion of the space to house a bank branch.  The total minimum rent due over the 12 year lease term is approximately $24.4 million.

The Company’s minimum annual rental payments for Bank premises due under non-cancelable leases are as follows:

	Minimum Rental
	(In thousands)
Years ended December 31:
2015	$	4,440
2016		4,513
2017		4,383
2018		4,448
2019		5,332
Thereafter		30,687
Total minimum payments required	$	53,803

The leases have escalation clauses for operating expenses and real estate taxes. Rent expense under these leases for the years ended December 31, 2014, 2013 and 2012 was approximately $3.8 million, $3.7 million and $3.7 million, respectively.

Contingencies:

The Company is a defendant in various lawsuits. Management of the Company, after consultation with outside legal counsel, believes that the resolution of these various matters will not result in any material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

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Note 11 - Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

11. Stock Based Compensation

For the years ended December 31, 2014, 2013 and 2012 the Company’s net income, as reported, includes $4.3 million, $3.4 million and $3.3 million, respectively, of stock-based compensation costs and $1.7 million, $1.3 million and $1.3 million, respectively, of income tax benefits related to the stock-based compensations plans.

The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, the expected volatility of the Company’s stock price, the risk-free interest rate over the options’ expected term and the annual dividend yield. The Company uses the fair value of the common stock on the date of award to measure compensation cost for restricted stock unit awards. Compensation cost is recognized over the vesting period of the award using the straight line method. There were no stock options granted for the years ended December 31, 2014, 2013 and 2012. There were 266,895, 246,045 and 230,675 restricted stock units granted for the years ended December 31, 2014, 2013 and 2012, respectively.

The 2014 Omnibus Incentive Plan (“2014 Omnibus Plan”) became effective on May 20, 2014 after adoption by the Board of Directors and approval by the stockholders. The 2014 Omnibus Plan authorizes the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) to grant a variety of equity compensation awards as well as long-term and annual cash incentive awards, all of which can, but need not, be structured so as to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).  The 2014 Omnibus Plan authorizes the issuance of 1,100,000 shares. To the extent that an award under the 2014 Omnibus Plan is cancelled, expired, forfeited, settled in cash, settled by issuance of fewer shares than the number underlying the award, or otherwise terminated without delivery of shares to a participant in payment of the exercise price or taxes relating to an award, the shares retained by or returned to the Company will be available for future issuance under the 2014 Omnibus Plan. No further awards may be granted under the Company’s 2005 Omnibus Incentive Plan, 1996 Stock Option Incentive Plan, and 1996 Restricted Stock Incentive Plan. At December 31, 2014, there were 1,097,200 shares available for delivery in connection with awards under the 2014 Omnibus Plan. To satisfy stock option exercises or fund restricted stock and restricted stock unit awards, shares are issued from treasury stock, if available; otherwise new shares are issued. The exercise price per share of a stock option grant may not be less than the fair market value of the common stock of the Company, as defined in the Omnibus Plan, on the date of grant and may not be re-priced without the approval of the Company’s stockholders. Options, stock appreciation rights, restricted stock, restricted stock units and other stock based awards granted under the Omnibus Plan are generally subject to a minimum vesting period of three years with stock options having a 10-year maximum contractual term. Other awards do not have a contractual term of expiration. The Compensation Committee is authorized to grant awards that vest upon a participant’s retirement. These amounts are included in stock-based compensation expense at the time of the participant’s retirement eligibility.

The following table summarizes the Company’s restricted stock unit (“RSU”) awards under the 2014 Omnibus Plan and the Prior Plans in the aggregate for the year ended December 31, 2014:

	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2013		346,584		$	14.08
Granted		266,895			20.17
Vested		(220,863	)		16.80
Forfeited		(19,462	)		15.59
Non-vested at December 31, 2014		373,154		$	16.75
Vested but unissued at December 31, 2014		233,836		$	16.93

As of December 31, 2014, there was $4.3 million of total unrecognized compensation cost related to RSU awards granted under the 2014 Omnibus Plan and the Prior Plans. That cost is expected to be recognized over a weighted-average period of 3.1 years.  The total fair value of awards vested for the years ended December 31, 2014, 2013 and 2012 were $4.4 million, $2.9 million and $3.3 million, respectively. The vested but unissued RSU awards consist of awards made to employees and directors who are eligible for retirement. According to the terms of these awards, which provide for vesting upon retirement, these employees and directors have no risk of forfeiture.  These shares will be issued at the original contractual vesting and settlement dates. As of December 31, 2014, there is no remaining unrecognized compensation cost related to stock options granted.

The following table summarizes certain information regarding the stock option awards under the Omnibus Plan and the Prior Plans in the aggregate for the year ended December 31, 2014:

	Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual (years)			Aggregate Intrinsic Value $(000) *
Outstanding at December 31, 2013		306,630		$	16.02
Granted		-			-
Exercised		(150,115	)		16.83
Forfeited		(1,600	)		19.37
Outstanding at December 31, 2014		154,915		$	15.19		3.2	$	787
Exercisable shares at December 31, 2014		154,915		$	15.19		3.2	$	787

* The intrinsic value of a stock option is the difference between the market value of the underlying stock and the exercise price of the option.

Cash proceeds, fair value received, tax benefits, and intrinsic value related to stock options exercised, and the weighted average grant date fair value for options granted, during the years ended December 31, 2014, 2013 and 2012 are provided in the following table:

(In thousands, except grant date fair value)	2014		2013		2012
Proceeds from stock options exercised	$	565	$	533	$	885
Fair value of shares received upon exercise of stock options		1,962		6,814		905
Tax benefit related to stock options exercised		88		151		56
Intrinsic value of stock options exercised		488		1,228		256
Weighted average fair value on grant date		n/a		n/a		n/a

Phantom Stock Plan: The Company maintains a non-qualified phantom stock plan as a supplement to its profit sharing plan for officers who have achieved the level of Senior Vice President and above and completed one year of service.  However, officers who had achieved at least the level of Vice President and completed one year of service prior to January 1, 2009 remain eligible to participate in the phantom stock plan.  Awards are made under this plan on certain compensation not eligible for awards made under the profit sharing plan, due to the terms of the profit sharing plan and the Internal Revenue Code. Employees receive awards under this plan proportionate to the amount they would have received under the profit sharing plan, but for limits imposed by the profit sharing plan and the Internal Revenue Code. The awards are made as cash awards, and then converted to common stock equivalents (phantom shares) at the then current market value of the Company’s common stock. Dividends are credited to each employee’s account in the form of additional phantom shares each time the Company pays a dividend on its common stock. In the event of a change of control (as defined in this plan), an employee’s interest is converted to a fixed dollar amount and deemed to be invested in the same manner as his interest in the Bank’s non-qualified deferred compensation plan. Employees vest under this plan 20% per year for 5 years. Employees also become 100% vested upon a change of control. Employees receive their vested interest in this plan in the form of a cash lump sum payment or installments, as elected by the employee, after termination of employment. The Company adjusts its liability under this plan to the fair value of the shares at the end of each period.

The following table summarizes the Company’s Phantom Stock Plan at or for the year ended December 31, 2014:

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2013		59,323		$	20.70
Granted		9,631			19.85
Forfeited		(56	)		19.73
Distributions		(1,785	)		19.60
Outstanding at December 31, 2014		67,113		$	20.27
Vested at December 31, 2014		66,996		$	20.27

The Company recorded stock-based compensation expense for the phantom stock plan of $17,000, $343,000 and $155,000 for the years ended December 31, 2014, 2013 and 2012, respectively. The total fair value of distributions from the phantom stock plan were $35,000, $9,000 and $12,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Information Relating to All Repurchase Agreements Which Are Collateralized by Mortgage-Backed Securities (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Information Relating to All Repurchase Agreements Which Are Collateralized by Mortgage-Backed Securities [Abstract]
Book value of collateral	$ 142,925		$ 199,447		$ 228,620
Estimated fair value of collateral	142,925		199,447		228,620
Average balance of outstanding agreements during the year	137,824		172,944		185,300
Maximum balance of outstanding agreements at a month end during the year	$ 155,300		$ 185,300		$ 185,300
Average interest rate of outstanding agreements during the year (1)	5.37%	[1]	3.42%	[1]	3.62%	[1]

[1] As discussed above, during the year ended December 31, 2014, the Company prepaid $30.0 million in FHLB-NY repurchase agreements at an average cost of 4.98% while incurring a prepayment penalty totaling $2.7 million. Excluding the prepayment penalty, the average interest rate of agreements during the year ended December 31, 2014 was 3.40%.

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Note 7 - Bank Premises and Equipment, Net

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

7. Bank Premises and Equipment, Net

Bank premises and equipment are as follows at December 31:

	2014		2013
	(In thousands)
Land	$	3,551	$	3,551
Building and leasehold improvements		25,717		22,464
Equipment and furniture		19,197		18,219
Total		48,465		44,234
Less: Accumulated depreciation and amortization		26,597		23,878
Bank premises and equipment, net	$	21,868	$	20,356

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Note 3 - Loans (Details) - Age Analysis of Recorded Investment in Loans (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	$ 24,588	$ 37,367
60 - 89 Days Past Due	8,615	13,002
Greater than 90 Days	33,196	47,238
Total Past Due	66,399	97,607
Current	3,732,255	3,325,401
Total Loans	3,798,654	3,423,008
Multi-Family Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	7,721	14,101
60 - 89 Days Past Due	1,729	3,684
Greater than 90 Days	7,554	13,349
Total Past Due	17,004	31,134
Current	1,906,456	1,680,905
Total Loans	1,923,460	1,712,039
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,612	5,029
60 - 89 Days Past Due	1,903	7,699
Greater than 90 Days	6,510	9,962
Total Past Due	10,025	22,690
Current	611,544	489,862
Total Loans	621,569	512,552
One-To-Four Family - Mixed-Use Property [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	10,408	14,017
60 - 89 Days Past Due	1,154	1,099
Greater than 90 Days	7,341	9,063
Total Past Due	18,903	24,179
Current	554,876	571,572
Total Loans	573,779	595,751
One-To-Four Family - Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	1,751	3,828
60 - 89 Days Past Due	2,244	518
Greater than 90 Days	11,051	12,968
Total Past Due	15,046	17,314
Current	172,526	176,412
Total Loans	187,572	193,726
Co-Operative Apartments [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due		99
Greater than 90 Days		144
Total Past Due		243
Current	9,835	9,894
Total Loans	9,835	10,137
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	3,000
Total Past Due	3,000
Current	2,286	4,247
Total Loans	5,286	4,247
Small Business Administration [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	90	106
Total Past Due	90	106
Current	7,044	7,686
Total Loans	7,134	7,792
Taxi Medallion [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	22,519	13,123
Total Loans	22,519	13,123
Commercial Business And Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	6	187
60 - 89 Days Past Due	1,585	2
Greater than 90 Days	740	1,752
Total Past Due	2,331	1,941
Current	445,169	371,700
Total Loans	$ 447,500	$ 373,641

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Effect of a One Percentage Point Change in Assumed Health Care Trend Rates (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Effect of a One Percentage Point Change in Assumed Health Care Trend Rates [Abstract]
Effect on postretirement benefit obligation	$ 1,682
Effect on postretirement benefit obligation	(1,271)
Effect on total service and interest cost	187
Effect on total service and interest cost	$ (137)

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Note 5 - Other Real Estate Owned

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Real Estate Owned [Text Block]

5. Other Real Estate Owned

The following table shows the activity in OREO during the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Balance at beginning of year	$	2,985		$	5,278		$	3,179
Acquisitions		7,112			5,369			6,127
Reductions to carrying value		(5	)		(243	)		(516	)
Sales		(3,766	)		(7,419	)		(3,512	)
Balance at end of year	$	6,326		$	2,985		$	5,278

The following table shows the gross gains, gross losses and write-downs of OREO reported in the Consolidated Statements of Income during the periods presented:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains	$	178		$	443		$	78
Gross losses		(109	)		(89	)		(255	)
Write-down of carrying value		(5	)		(243	)		(516	)
Total	$	64		$	111		$	(693	)

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Note 6 - Debt and Equity Securities

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6. Debt and Equity Securities

The Company’s investments in equity securities that have readily determinable fair values and all investments in debt securities are classified in one of the following three categories and accounted for accordingly: (1) trading securities, (2) securities available for sale and (3) securities held-to-maturity.

The Company did not hold any trading securities or securities held-to-maturity during the years ended December 31, 2014 and 2013. Securities available for sale are recorded at fair value.

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2014:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	90,719	$	91,273	$	1,268	$	714
Municipals		145,864		148,896		3,093		61
Mutual funds		21,118		21,118		-		-
Other		7,098		7,090		-		8
Total other securities		264,799		268,377		4,361		783
REMIC and CMO		504,207		505,768		6,188		4,627
GNMA		13,862		14,159		421		124
FNMA		169,956		170,367		2,128		1,717
FHLMC		14,505		14,639		142		8
Total mortgage-backed securities		702,530		704,933		8,879		6,476
Total securities available for sale	$	967,329	$	973,310	$	13,240	$	7,259

Mortgage-backed securities shown in the table above include three private issue collateralized mortgage obligations (“CMO”) that are collateralized by commercial real estate mortgages with an amortized cost and market value of $12.4 million at December 31, 2014.

The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014.

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,287	$	714	$	9,573	$	428	$	29,714	$	286
Municipals		8,810		61		3,546		11		5,264		50
Other		292		8		-		-		292		8
Total other securities		48,389		783		13,119		439		35,270		344
REMIC and CMO		216,190		4,627		77,382		399		138,808		4,228
GNMA		8,358		124		-		-		8,358		124
FNMA		95,148		1,717		-		-		95,148		1,717
FHLMC		6,773		8		6,773		8		-		-
Total mortgage-backed securities		326,469		6,476		84,155		407		242,314		6,069
Total securities available for sale	$	374,858	$	7,259	$	97,274	$	846	$	277,584	$	6,413

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive income (“AOCI”) within Stockholders’ Equity.

The Company reviewed each investment that had an unrealized loss at December 31, 2014. An unrealized loss exists when the current fair value of an investment is less than its amortized cost basis. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCI, net of tax.  Unrealized losses that are considered to be other-than-temporary are split between credit related and noncredit related impairments, with the credit related impairment being recorded as a charge against earnings and the noncredit related impairment being recorded in AOCI, net of tax.

Corporate Securities:

The unrealized losses in Corporate securities at December 31, 2014 consist of losses on five Corporate securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

Municipal Securities:

The unrealized losses in Municipal securities at December 31, 2014, consist of losses on three municipal securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

Other Securities:

The unrealized losses in Other Securities at December 31, 2014, consist of losses on one single issuer trust preferred security. The unrealized losses on this security were caused by market interest volatility, a significant widening of credit spreads across markets for these securities and illiquidity and uncertainty in the financial markets. This security is currently rated below investment grade. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell this security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this investment to be other-than-temporarily impaired at December 31, 2014.

During the year ended December 31, 2014, three pooled trust preferred securities for which OTTI charges were recorded in previous periods, were sold for proceeds totaling $11.1 million, recording a net loss on sale of $2.3 million.

REMIC and CMO:

The unrealized losses in Real Estate Mortgage Investment Conduit (“REMIC”) and Collateralized Mortgage Obligation (“CMO”) securities at December 31, 2014 consist of seven issues from the Federal Home Loan Mortgage Corporation (“FHLMC”), 14 issues from the Federal National Mortgage Association (“FNMA”), eight issues from Government National Mortgage Association (“GNMA”) and one private issue.

The unrealized losses on the REMIC and CMO securities issued by FHLMC, FNMA, GNMA and the private issuer were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms, and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements, and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities.  Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

Credit related impairment for mortgage-backed securities are determined for each security by estimating losses based on the following set of assumptions: (1) delinquency and foreclosure levels; (2) projected losses at various loss severity levels; and (3) credit enhancement and coverage. Based on these reviews, no OTTI charge was recorded during the year ended December 31, 2014. The Company recorded credit related OTTI charges totaling $1.4 million on four private issue CMOs during the year ended December 31, 2013 and $0.8 million on five private issue CMOs during the year ended December 31, 2012.

The private issue CMOs which incurred the above credit related OTTI charges were sold during the year ended December 31, 2013 for proceeds of $18.3 million realizing a loss on sale of $1.7 million.

GNMA:

The unrealized losses in GNMA securities at December 31, 2014 consist of losses on one security. The unrealized losses were caused by movements in interest rates. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell the security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this security to be other-than-temporarily impaired at December 31, 2014.

FNMA:

The unrealized losses in FNMA securities at December 31, 2014 consist of losses on 13 securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes will cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2014.

FHMLC:

The unrealized losses in FHMLC securities at December 31, 2014 consist of losses on one security. The unrealized losses were caused by movements in interest rates. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell the security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this security to be other-than-temporarily impaired at December 31, 2014.

The following table represents the activity related to the credit loss component recognized in earnings on debt securities held by the Company for which a portion of OTTI was recognized in AOCI for the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Beginning balance	$	3,738		$	6,178		$	6,922
Recognition of actual losses		-			(842	)		(1,271	)
OTTI charges due to credit loss recorded in earnings		-			1,419			776
Securities sold during the period		(3,738	)		(3,017	)		(249	)
Ending balance	$	-		$	3,738		$	6,178

The amortized cost and estimated fair value of the Company’s securities, classified as available for sale at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	23,513	$	23,516
Due after one year through five years		35,802		37,050
Due after five years through ten years		68,620		68,097
Due after ten years		136,864		139,714
Total other securities		264,799		268,377
Mortgage-backed securities		702,530		704,933
Total securities available for sale	$	967,329	$	973,310

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:

	For the years ended December 31,
	2014			2013			2012
	(In thousands)
Gross gains from the sale of securities	$	5,247		$	5,222		$	154
Gross losses from the sale of securities		(2,372	)		(2,201	)		(107	)
Net gains from the sale of securities	$	2,875		$	3,021		$	47

The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2013:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	100,362	$	101,711	$	2,316	$	967
Municipals		127,967		123,423		93		4,637
Mutual funds		21,565		21,565		-		-
Other		18,160		14,935		-		3,225
Total other securities		268,054		261,634		2,409		8,829
REMIC and CMO		494,984		489,670		6,516		11,830
GNMA		38,974		40,874		2,325		425
FNMA		217,615		212,322		2,233		7,526
FHLMC		13,297		13,290		226		233
Total mortgage-backed securities		764,870		756,156		11,300		20,014
Total securities available for sale	$	1,032,924	$	1,017,790	$	13,709	$	28,843

Mortgage-backed securities shown in the table above include two private issue collateralized mortgage obligations (“CMO”) that are collateralized by commercial real estate mortgages with an amortized cost and market value of $13.9 million at December 31, 2013.

The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013.

	Total				Less than 12 months				12 months or more
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Corporate	$	39,033	$	967	$	39,033	$	967	$	-	$	-
Municipals		100,875		4,637		95,958		4,187		4,917		450
Other		6,337		3,225		-		-		6,337		3,225
Total other securities		146,245		8,829		134,991		5,154		11,254		3,675
REMIC and CMO		298,165		11,830		279,743		10,650		18,422		1,180
GNMA		9,213		425		9,213		425		-		-
FNMA		139,999		7,526		131,248		6,654		8,751		872
FHLMC		7,478		233		7,478		233		-		-
Total mortgage-backed securities		454,855		20,014		427,682		17,962		27,173		2,052
Total securities available for sale	$	601,100	$	28,843	$	562,673	$	23,116	$	38,427	$	5,727

Corporate:

The unrealized losses in Corporate securities at December 31, 2013 consisted of losses on four Corporate securities. The unrealized losses were caused by movements in interest rates. It was not anticipated that these securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013.

Municipal Securities:

The unrealized losses in Municipal securities at December 31, 2013, consisted of losses on 33 municipal securities. The unrealized losses were caused by movements in interest rates. It was not anticipated that these securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013.

Other Securities:

The unrealized losses in Other Securities at December 31, 2013, consisted of losses on one single issuer trust preferred security and two pooled trust preferred securities. The unrealized losses on such securities were caused by market interest volatility, a significant widening of credit spreads across markets for these securities and illiquidity and uncertainty in the financial markets. These securities were rated below investment grade. The pooled trust preferred securities did not have collateral that was subordinate to the classes the Company own. The Company’s management evaluated these securities using an impairment model, through an independent third party, that was applied to debt securities. In estimating OTTI losses, management considered: (1) the length of time and the extent to which the fair value has been less than amortized cost; (2) the current interest rate environment; (3) the financial condition and near-term prospects of the issuer, if applicable; and (4) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Additionally, management reviewed the financial condition of each individual issuer within the pooled trust preferred securities. All of the issuers of the underlying collateral of the pooled trust preferred securities we reviewed are banks.

For each bank, our review included the following performance items of the banks:

Ratio of tangible equity to assets

Tier 1 Risk Weighted Capital

Net interest margin

Efficiency ratio for most recent two quarters

Return on average assets for most recent two quarters

Texas Ratio (ratio of non-performing assets plus assets past due over 90 days divided by tangible equity plus the reserve for loan losses)

Credit ratings (where applicable)

Capital issuances within the past year (where applicable)

Ability to complete Federal Deposit Insurance Corporation (“FDIC”) assisted acquisitions (where applicable)

Based on the review of the above factors, we concluded that:

All of the performing issuers in our pools were well capitalized banks, and did not appear likely to be closed by their regulators.

All of the performing issuers in our pools would continue as a going concern and would not default on their securities.

In order to estimate potential future defaults and deferrals, we segregated the performing underlying issuers by their Texas Ratio. We then reviewed performing issuers with Texas Ratios in excess of 50%. The Texas Ratio is a key indicator of the health of the institution and the likelihood of failure. This ratio compares the problem assets of the institution to the institution’s available capital and reserves to absorb losses that are likely to occur in these assets. There was one issuer in our pooled trust preferred securities which had a Texas Ratio in excess of 50%. We assigned a 25% default rate to this issuer. All other issuers in our pooled trust preferred securities had a Texas Ratio below 50%.  We assigned a zero percent default rate to these issuers. Our analysis also assumed that issuers currently deferring would default with no recovery, and issuers that have defaulted will have no recovery.

We had an independent third party prepare a discounted cash flow analysis for each of these pooled trust preferred securities based on the assumptions discussed above. Other significant assumptions were: (1) two issuers totaling $26.7 million would prepay in the first quarter of 2014; (2) two issuers totaling $21.5 million would prepay in the second quarter of 2015; (3) senior classes would not call the debt on their portions; and (4) use of the forward London Interbank Offered Rate (“LIBOR”) curve. The cash flows were discounted at the effective rate for each security.

The Company also owned a pooled trust preferred security that was carried under the fair value option, where the unrealized losses are included in the Consolidated Statements of Income – Net gain (loss) from fair value adjustments.

It was not anticipated at the time that the one single issuer trust preferred security and the two pooled trust preferred securities would be settled at a price that was less than the amortized cost of the Company’s investment. Each of these securities was performing according to its terms and, in the opinion of management based on the review performed at December 31, 2013, would continue to perform according to its terms. The Company did not have the intent to sell these securities and it was more likely than not the Company would not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion was based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believed would cause the sale of the securities. Therefore, the Company did not consider the one single issuer trust preferred security and the two pooled trust preferred securities to be other-than-temporarily impaired at December 31, 2013.

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Note 21 - Quarterly Financial Data (unaudited) (Details) - Selected Unaudited Quarterly Financial Data (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly operating data:
Interest income	$ 49,171	$ 49,177	$ 49,569	$ 49,211	$ 50,294	$ 49,851	$ 50,295	$ 50,086	$ 197,128	$ 200,526	$ 213,714
Interest expense	12,057	17,220	12,740	12,724	13,058	12,866	12,999	15,940	54,741	54,863	63,275
Net interest income	37,114	31,957	36,829	36,487	37,236	36,985	37,296	34,146	142,387	145,663	150,439
Provision (benefit) for loan losses	(3,192)	(618)	(1,092)	(1,119)	1,000	3,435	3,500	6,000	(6,021)	13,935	21,000
Other operating income	(576)	7,123	1,986	1,710	1,064	945	2,199	5,348	1,527	1,586	1,413
Other operating expense	21,685	21,437	20,624	22,093	18,894	19,050	20,213	22,419	85,839	80,576	82,326
Income before income tax expense	18,045	18,261	19,283	17,223	18,406	15,445	15,782	11,075	72,812	60,708	56,178
Income tax expense	6,988	7,060	7,598	6,927	6,458	6,024	6,155	4,319	28,573	22,956	21,847
Net income	$ 11,057	$ 11,201	$ 11,685	$ 10,296	$ 11,948	$ 9,421	$ 9,627	$ 6,756	$ 44,239	$ 37,752	$ 34,331
Basic earnings per common share (in Dollars per share)	$ 0.38	$ 0.38	$ 0.39	$ 0.34	$ 0.40	$ 0.32	$ 0.32	$ 0.22	$ 1.49	$ 1.26	$ 1.13
Diluted earnings per common share (in Dollars per share)	$ 0.38	$ 0.38	$ 0.39	$ 0.34	$ 0.40	$ 0.32	$ 0.32	$ 0.22	$ 1.48	$ 1.26	$ 1.13
Dividends per common share (in Dollars per share)	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.13	$ 0.13	$ 0.13	$ 0.13
Average common shares outstanding for:
Basic earnings per share (in Shares)	29,343	29,772	30,059	29,984	29,762	29,773	30,213	30,449	29,788	30,047	30,402
Diluted earnings per share (in Shares)	29,366	29,796	30,090	30,022	29,802	29,805	30,235	30,481	29,817	30,073	30,433

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Note 8 - Deposits

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Deposit Liabilities Disclosures [Text Block]

8. Deposits

Total deposits at December 31, 2014 and 2013, and the weighted average rate on deposits at December 31, 2014, are as follows:

	2014		2013		Weighted Average Rate 2014
	(Dollars in thousands)
Interest-bearing deposits:
Certificate of deposit accounts	$	1,305,823	$	1,120,955		1.65	%
Savings accounts		261,942		265,003		0.38
Money market accounts		290,263		199,907		0.32
NOW accounts		1,359,057		1,416,774		0.45
Total interest-bearing deposits		3,217,085		3,002,639
Non-interest bearing demand deposits		255,834		197,343
Total due to depositors		3,472,919		3,199,982
Mortgagors' escrow deposits		35,679		32,798		0.09
Total deposits	$	3,508,598	$	3,232,780

The aggregate amount of time deposits with denominations of $250,000 or more (excluding brokered deposits issued in $1,000.00 amounts under a master certificate of deposit) was $109.6 million and $75.6 million at December 31, 2014 and 2013, respectively. The aggregate amount of brokered deposits was $763.9 million and $517.4 million at December 31, 2014 and 2013, respectively.

Deposits obtained from the governmental division are collateralized by either securities or letters of credit issued by FHLB-NY or are placed in an Insured Cash Sweep service (“ICS”).  The letters of credit are collateralized by mortgage loans pledged by the Bank.

At December 31, 2014, government deposits totaled $891.9 million, of which $94.0 million were ICS deposits and $797.9 million were collateralized by $379.3 million in securities and $499.1 million of letters of credit. At December 31, 2013, there were $407.4 million in securities and $517.8 million of letters of credit pledged as collateral for $867.1 million in government deposits.

Interest expense on deposits is summarized as follows for the years ended December 31:

	2014		2013		2012
	(In thousands)
Certificate of deposit accounts	$	22,420	$	24,414	$	32,983
Savings accounts		597		515		689
Money market accounts		667		294		399
NOW accounts		6,227		6,777		6,275
Total due to depositors		29,911		32,000		40,346
Mortgagors' escrow deposits		133		37		36
Total interest expense on deposits	$	30,044	$	32,037	$	40,382

Scheduled remaining maturities of certificate of deposit accounts are summarized as follows for the years ended December 31:

	2014		2013
	(In thousands)
Within 12 months	$	455,295	$	459,016
More than 12 months to 24 months		269,840		318,215
More than 24 months to 36 months		229,931		158,050
More than 36 months to 48 months		176,876		51,508
More than 48 months to 60 months		148,424		108,489
More than 60 months		25,457		25,677
Total certificate of deposit accounts	$	1,305,823	$	1,120,955

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Note 3 - Loans (Details) - Allowance for Loan Losses (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for Loan Losses [Abstract]
Allowance for credit losses - balance	$ 31,776	$ 31,104	$ 30,344
Provision (benefit) for loan losses	(6,021)	13,935	21,000
Charge-offs	(2,442)	(14,843)	(21,269)
Recoveries	1,783	1,580	1,029
Allowance for credit losses - balance	$ 25,096	$ 31,776	$ 31,104

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Note 14 - Regulatory Capital (Details) - Summary of the Bank’s Compliance with Banking Regulatory Capital Standards: (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Savings Bank [Member]
Tier I (leverage) capital:
Capital level	$ 472,251	$ 447,305
Capital level	9.63%	9.48%
Requirement to be well capitalized	245,254	235,992
Requirement to be well capitalized	5.00%	5.00%
Excess	226,997	211,313
Excess	4.63%	4.48%
Tier I risk-based capital:
Capital level	472,251	447,305
Capital level	13.87%	14.59%
Requirement to be well capitalized	204,354	183,944
Requirement to be well capitalized	6.00%	6.00%
Excess	267,897	263,361
Excess	7.87%	8.59%
Total risk-based capital:
Capital level	497,347	479,081
Capital level	14.60%	15.63%
Requirement to be well capitalized	340,589	306,573
Requirement to be well capitalized	10.00%	10.00%
Excess	156,758	172,508
Excess	4.60%	5.63%
Holding Company [Member]
Tier I (leverage) capital:
Capital level	471,233	456,772
Capital level	9.62%	9.70%
Requirement to be well capitalized	244,960	235,547
Requirement to be well capitalized	5.00%	5.00%
Excess	226,273	221,225
Excess	4.62%	4.70%
Tier I risk-based capital:
Capital level	471,233	456,772
Capital level	13.87%	14.93%
Requirement to be well capitalized	203,878	183,579
Requirement to be well capitalized	6.00%	6.00%
Excess	267,355	273,193
Excess	7.87%	8.93%
Total risk-based capital:
Capital level	496,329	488,548
Capital level	14.61%	15.97%
Requirement to be well capitalized	339,797	305,966
Requirement to be well capitalized	10.00%	10.00%
Excess	$ 156,532	$ 182,582
Excess	4.61%	5.97%

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Terms of the Securities Issued by the Trusts (Capital Securities [Member])	12 Months Ended
	Dec. 31, 2013
Flushing Financial Capital Trust II [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Terms of the Securities Issued by the Trusts [Line Items]
Initial Rate	7.14%
First Reset Date	Sep. 01, 2012
Spread over 3-month LIBOR	1.41%
Maturity Date	Sep. 01, 2037
Flushing Financial Capital Trust III [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Terms of the Securities Issued by the Trusts [Line Items]
Initial Rate	6.89%
First Reset Date	Jun. 15, 2012
Spread over 3-month LIBOR	1.44%
Maturity Date	Sep. 15, 2037
Flushing Financial Capital Trust IV [Member]
Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Terms of the Securities Issued by the Trusts [Line Items]
Initial Rate	6.85%
First Reset Date	Jul. 30, 2012
Spread over 3-month LIBOR	1.42%
Maturity Date	Jul. 30, 2037

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Note 4 - Loans Held for Sale (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Note 4 - Loans Held for Sale (Details) [Line Items]
Number of Performing Commercial Real Estate Loans	1
Commercial Real Estate Loans [Member]
Note 4 - Loans Held for Sale (Details) [Line Items]
Loans Receivable, Net	2,400,000
Loans and Leases Receivable, Gain (Loss) on Sales, Net	200,000
Small Business Administration [Member]
Note 4 - Loans Held for Sale (Details) [Line Items]
Loans Receivable, Net		700,000
Loans and Leases Receivable, Gain (Loss) on Sales, Net		$ 60,000

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Develop Periodic Pension Benefit for the Retirement Plan	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Develop Periodic Pension Benefit for the Retirement Plan [Line Items]
Weighted average discount rate	4.60%	3.75%	4.25%
Rate of increase in future compensation levels
Expected long-term rate of return on assets
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Develop Periodic Pension Benefit for the Retirement Plan [Line Items]
Weighted average discount rate	4.60%	3.75%	4.25%
Rate of increase in future compensation levels
Expected long-term rate of return on assets	7.50%	7.50%	7.50%

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Note 3 - Loans (Details) - Loans Designated as Criticized or Classified (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	$ 56,500	$ 81,800
Multi-Family Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	6,494	9,940
Multi-Family Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	10,226	19,089
Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	16,720	29,029
Commercial Real Estate Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	5,453	13,503
Commercial Real Estate Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	7,100	16,820
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	12,553	30,323
One-To-Four Family - Mixed-Use Property [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	5,254	7,992
One-To-Four Family - Mixed-Use Property [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	12,499	14,898
One-To-Four Family - Mixed-Use Property [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	17,753	22,890
One-To-Four Family - Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	2,352	2,848
One-To-Four Family - Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	13,056	14,026
One-To-Four Family - Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	15,408	16,874
Co-Operative Apartments [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	623
Co-Operative Apartments [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified		59
Co-Operative Apartments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	623	59
Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified		746
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified		746
Small Business Administration [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	479	310
Small Business Administration [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	479	310
Commercial Business And Other [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	2,841	7,314
Commercial Business And Other [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	3,779	8,450
Commercial Business And Other [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified		50
Commercial Business And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	6,620	15,814
Total Loans Designated As Criticized Or Classified [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	23,496	42,653
Total Loans Designated As Criticized Or Classified [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	46,660	73,342
Total Loans Designated As Criticized Or Classified [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified		50
Total Loans Designated As Criticized Or Classified [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans designated as criticized or classified	$ 70,156	$ 116,045

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Note 11 - Stock-Based Compensation (Details) - Full Value Awards (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2012
Full Value Awards [Abstract]
Shares		346,584
Weighted-Average Grant-Date Fair Value		$ 14.08
Vested but unissued at December 31, 2014	233,836
Vested but unissued at December 31, 2014	$ 16.93
Granted	266,895
Granted	$ 20.17
Vested	(220,863)
Vested	$ 16.80
Forfeited	(19,462)
Forfeited	$ 15.59
Shares	373,154	346,584
Weighted-Average Grant-Date Fair Value	$ 16.75	$ 14.08

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Note 18 - Fair Value of Financial Instruments (Details) - Assets and Liabilities Carried at Fair Value on a Recurring Basis, Classified Within Level 3 of the Valuation Hierarchy (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Transfer into Level 3		$ 6,100
REMIC And CMO [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		23,475
Principal repayments		(5,036)
Sales		(19,973)
Other-than-temporary impairment charge		(1,419)
Change in unrealized gains (losses) included in other comprehensive income		2,953
Municipal [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	9,223	9,429
Principal repayments	(214)	(206)
Ending balance	15,519	9,223
Municipal [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	15,519
Trust Preferred Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	14,935	6,650
Transfer into Level 3		6,126
Sales	(11,133)
Net gain from fair value adjustment of financial assets	71	884
Change in unrealized gains (losses) included in other comprehensive income	3,217	1,275
Ending balance	7,090	14,935
Changes in unrealized held at period end	3,217	1,275
Trust Preferred Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	7,090
Junior Subordinated Debentures [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	29,570	23,922
Net loss from fair value adjustment of financial liabilities	(801)	5,651
Decrease in accrued interest payable	2	(3)
Ending balance	28,771	29,570
Junior Subordinated Debentures [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Ending balance	$ 28,771

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Note 4 - Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2014

Loans Held For Sale [Abstract]

Delinquent And Non-Performing Loans Sold During Period [Table Text Block]

	For the year ended December 31, 2014
(Dollars in thousands)	Loans sold		Proceeds		Net (charge-offs) recoveries			Net gain
Multi-family residential		12	$	5,759	$	(80	)	$	9
Commercial real estate		6		4,635		295			8
One-to-four family - mixed-use property		14		5,399		122			50
Commercial business and other		2		64		20			-
Total		34	$	15,857	$	357		$	67

	For the year ended December 31, 2013
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		21	$	11,420	$	(1,024	)	$	99
Commercial real estate		9		5,488		(703	)		6
One-to-four family - mixed-use property		39		11,427		(2,791	)		(52	)
Construction		2		5,066		(164	)		-
Commercial business and other		1		-		(21	)		-
Total		72	$	33,401	$	(4,703	)	$	53

	For the year ended December 31, 2012
(Dollars in thousands)	Loans sold		Proceeds		Net charge-offs			Net gain (loss)
Multi-family residential		34	$	21,429	$	(2,974	)	$	(46	)
Commercial real estate		11		5,869		(572	)		-
One-to-four family - mixed-use property		25		8,270		(1,927	)		-
Construction		3		2,540		(57	)		-
Commercial business and other		4		6,115		(136	)		8
Total		77	$	44,223	$	(5,666	)	$	(38	)

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Note 2 - Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 34,265,000	$ 33,485,000	$ 40,425,000	$ 55,721,000
Interest-bearing Deposits in Banks and Other Financial Institutions	23,000,000	23,700,000
Cash Reserve Deposit Required and Made	7,500,000	10,100,000
Goodwill, Impairment Loss	0
Goodwill	16,127,000	16,127,000
Number of Loan Portfolios	2
Fair Value, Collateral Dependent Loans, Percentage Of Appraised Or Internally Estimated Value Of Property	85.00%
Amount of Collateral Dependent Impaired Loans Measured For Impairment By Utilizing Third Party Appraisals	31,000,000
Percentage of Collateral Dependent Impaired Loans Measured For Impairment By Utilizing Third Party Appraisals	68.80%
Amount of Collateral Dependent Impaired Loans Measured For Impairment Using Internal Evaluations	14,100,000
Percentage of Collateral Dependent Impaired Loans Measured For Impairment Using Internal Evaluations	31.20%
Disposal Group, Including Discontinued Operation, Loans Receivable, Net	0	425,000
Advertising Expense	1,800,000	1,900,000	1,700,000
Multi-Family Residential [Member] | Nonperforming Financing Receivable [Member]
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Disposal Group, Including Discontinued Operation, Loans Receivable, Net		$ 400,000
Loans Held For Sale, Number		1
Antidilutive Options Excluded from Computation of Earnings Per Share [Member]
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 18.55	$ 17.63
Bank Premises and Equipment [Member] | Minimum [Member]
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Bank Premises and Equipment [Member] | Maximum [Member]
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Employee Stock Option [Member]
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)	0	151,900	550,400

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Note 13 - Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

13. Stockholders’ Equity

Dividend Restrictions on the Bank:

In connection with the Savings Bank’s conversion from mutual to stock form in November 1995, a special liquidation account was established at the time of conversion, in accordance with the requirements of its primary regulator, which was equal to its capital as of June 30, 1995. The liquidation account is reduced as and to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases in deposits do not restore an eligible account holder’s interest in the liquidation account. Subsequent to the Merger, the Bank assumed the liquidation account. In the event of a complete liquidation of the Bank, each eligible account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the current adjusted qualifying balances for accounts then held. As of December 31, 2014, the Bank’s liquidation account was $1.0 million, and was presented within retained earnings.

In addition to the restriction described above, New York State and Federal banking regulations place certain restrictions on dividends paid by the Bank to the Holding Company. The total amount of dividends which may be paid at any date is generally limited to the net income of the Bank for the current year and prior two years, less any dividends previously paid from those earnings. As of December 31, 2014, the Bank had $60.4 million in retained earnings available to distribute to the Holding Company in the form of cash dividends.

In addition, dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements.

As a bank holding company, the Holding Company is subject to similar dividend restrictions.

Stockholder Rights Plan:

The Holding Company has adopted a Shareholder Rights Plan under which each stockholder has one right to purchase from the Holding Company, for each share of common stock owned, one one-hundredth of a share of Series A junior participating preferred stock at a price of $65. The rights will become exercisable only if a person or group acquires 15% or more of the Holding Company’s common stock or commences a tender or exchange offer which, if consummated, would result in that person or group owning at least 15% of the Common Stock (the “acquiring person or group”). In such case, all stockholders other than the acquiring person or group will be entitled to purchase, by paying the $65 exercise price, Common Stock (or a common stock equivalent) with a value of twice the exercise price.  In addition, at any time after such event, and prior to the acquisition by any person or group of 50% or more of the Common Stock, the Board of Directors may, at its option, require each outstanding right (other than rights held by the acquiring person or group) to be exchanged for one share of Common Stock (or one common stock equivalent). If a person or group becomes an acquiring person and the Holding Company is acquired in a merger or other business combination or sells more than 50% of its assets or earning power, each right will entitle all other holders to purchase, by payment of $65 exercise price, common stock of the acquiring company with a value of twice the exercise price. The rights plan expires on September 30, 2016.

Treasury Stock Transactions:

The Holding Company repurchased 914,671 common shares at an average cost of $19.29 during the year ended December 31, 2014. The Holding Company repurchased 836,092 common shares at an average cost of $15.73 during the year ended December 31, 2013.  At December 31, 2014, 635,199 shares remain to be repurchased under the current stock repurchase program. Stock will be purchased under the current stock repurchase program from time to time, in the open market or through private transactions, subject to market conditions and at the discretion of the management of the Company. There is no expiration or maximum dollar amount under this authorization.

Accumulated Other Comprehensive Income (Loss):

The following are changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended December 31, 2014 and 2013:

December 31, 2014	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)
Other comprehensive income before reclassifications, net of tax		13,548			(3,790	)		9,758
Amounts reclassified from accumulated other comprehensive income, net of tax		(1,634	)		344			(1,290	)
Net current period other comprehensive income, net of tax		11,914			(3,446	)		8,468
Ending balance, net of tax	$	3,392		$	(6,299	)	$	(2,907	)

December 31, 2013	Unrealized Gains and (Losses) on Available for Sale Securities			Defined Benefit Pension Items			Total
	(In thousands)
Beginning balance, net of tax	$	18,921		$	(6,784	)	$	12,137
Other comprehensive income before reclassifications, net of tax		(26,541	)		3,261			(23,280	)
Amounts reclassified from accumulated other comprehensive income, net of tax		(902	)		670			(232	)
Net current period other comprehensive income, net of tax		(27,443	)		3,931			(23,512	)
Ending balance, net of tax	$	(8,522	)	$	(2,853	)	$	(11,375	)

The following table sets forth significant amounts reclassified out of accumulated other comprehensive income by component for the year ended December 31, 2014:

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	2,875		Net gain on sale of securities
		(1,241	)	Tax expense
	$	1,634		Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(700	) (1)	Other expense
Prior service credits		45	(1)	Other expense
		(655	)	Total before tax
		311		Tax benefit
	$	(344	)	Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).

The following table sets forth significant amounts reclassified out of accumulated other comprehensive income by component for the year ended December 31, 2013:

Details about Accumulated Other Comprehensive Income Components	Amounts Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement Where Net Income is Presented
(Dollars in thousands)
Unrealized gains (losses) on available for sale securities:	$	3,021		Net gain on sale of securities
		(1,321	)	Tax expense
	$	1,700		Net of tax
OTTI charges	$	(1,419	)	OTTI charge
		621		Tax benefit
	$	(798	)	Net of tax
Amortization of defined benefit pension items:
Actuarial losses	$	(1,237	)(1)	Other expense
Prior service credits		46	(1)	Other expense
		(1,191	)	Total before tax
		521		Tax benefit
	$	(670	)	Net of tax

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 of the Notes to Consolidated Financial Statements “Pension and Other Postretirement Benefit Plans”).

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Determine Benefit Obligations and Periodic Pension Expense for the Directors’ Plan	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Determine Benefit Obligations and Periodic Pension Expense for the Directors’ Plan [Line Items]
Weighted average discount rate for periodic pension benefit expense	4.60%	3.75%	4.25%
Rate of increase in future compensation levels
Directors' Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used to Determine Benefit Obligations and Periodic Pension Expense for the Directors’ Plan [Line Items]
Weighted average discount rate for the benefit obligation	3.76%	4.60%	3.75%
Weighted average discount rate for periodic pension benefit expense	4.60%	3.75%	4.25%
Rate of increase in future compensation levels

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Note 18 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

18. Fair Value of Financial Instruments

The Company carries certain financial assets and financial liabilities at fair value in accordance with ASC Topic 825 “Financial Instruments” and values those financial assets and financial liabilities in accordance with ASC Topic 820 “Fair Value Measurements and Disclosures.”  ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  ASC topic 825 permits entities to choose to measure many financial instruments and certain other items at fair value. At December 31, 2014, the Company carried financial assets and financial liabilities under the fair value option with fair values of $32.6 million and $28.8 million, respectively. The Company elected to measure at fair value, securities with a cost of $5.0 million that were purchased during the year ended December 31, 2014. The Company did not elect to carry any additional financial assets or financial liabilities under the fair value option during the year ended December 31, 2013. During the years ended December 31, 2014 and 2013, the Company sold financial assets carried under the fair value option totaling $6.2 million and $8.1 million, respectively.

The following table presents the financial assets and financial liabilities reported at fair value under the fair value option at December 31, 2014 and 2013, and the changes in fair value included in the Consolidated Statement of Income – Net gain (loss) from fair value adjustments, for the years ended December 31, 2014, 2013 and 2012:

	Fair Value		Fair Value		Changes in Fair Values For Items Measured at Fair Value
	Measurements		Measurements		Pursuant to Election of the Fair Value Option
	at December 31,		at December 31,		For the year ended		For the year ended			For the year ended
Description	2014		2013		December 31, 2014		December 31, 2013			December 31, 2012
(Dollars in thousands)
Mortgage-backed securities	$	4,678	$	7,119	$	75	$	(725	)	$	(539	)
Other securities		27,915		30,163		598		241			796
Borrowed funds		28,771		29,570		802		(5,651	)		2,062
Net gain (loss) from fair value adjustments (1)					$	1,475	$	(6,135	)	$	2,319

(1) The net gain (loss) from fair value adjustments presented in the above table does not include net gains and (losses) of ($4.0) million, $3.6 million and ($2.3) million from the change in fair value of derivative instruments during the years ended December 31, 2014, 2013 and 2012, respectively.

Included in the fair value of the financial assets and financial liabilities selected for the fair value option is the accrued interest receivable or payable for the related instrument. The Company reports as interest income or interest expense in the Consolidated Statement of Income, the interest receivable or payable on the financial instruments selected for the fair value option at their respective contractual rates.

The borrowed funds have a contractual principal amount of $61.9 million at December 31, 2014 and 2013. The fair value of borrowed funds includes accrued interest payable of $0.1 million at December 31, 2014 and 2013.

The Company generally holds its earning assets, other than securities available for sale, to maturity and settles its liabilities at maturity. However, fair value estimates are made at a specific point in time and are based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Accordingly, as assumptions change, such as interest rates and prepayments, fair value estimates change and these amounts may not necessarily be realized in an immediate sale.

Disclosure of fair value does not require fair value information for items that do not meet the definition of a financial instrument or certain other financial instruments specifically excluded from its requirements. These items include core deposit intangibles and other customer relationships, premises and equipment, leases, income taxes and equity.

Further, fair value disclosure does not attempt to value future income or business. These items may be material and accordingly, the fair value information presented does not purport to represent, nor should it be construed to represent, the underlying “market” or franchise value of the Company.

Financial assets and financial liabilities reported at fair value are required to be measured based on either: (1) quoted prices in active markets for identical financial instruments (Level 1); (2) significant other observable inputs (Level 2); or (3) significant unobservable inputs (Level 3).

A description of the methods and significant assumptions utilized in estimating the fair value of the Company’s assets and liabilities that are carried at fair value on a recurring basis are as follows:

Level 1 – where quoted market prices are available in an active market. The Company did not value any of its assets or liabilities that are carried at fair value on a recurring basis as Level 1 at December 31, 2014 and 2013.

Level 2 – when quoted market prices are not available, fair value is estimated using quoted market prices for similar financial instruments and adjusted for differences between the quoted instrument and the instrument being valued.  Fair value can also be estimated by using pricing models, or discounted cash flows.  Pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices and credit spreads.  In addition to observable market information, models also incorporate maturity and cash flow assumptions. At December 31, 2014 and 2013, Level 2 included mortgage related securities, corporate debt and interest rate caps/swaps.

Level 3 – when there is limited activity or less transparency around inputs to the valuation, financial instruments are classified as Level 3. At December 31, 2014 and 2013, Level 3 included municipal securities and trust preferred securities owned by and junior subordinated debentures issued by the Company.

The methods described above may produce fair values that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies, assumptions and models to determine fair value of certain financial instruments could produce different estimates of fair value at the reporting date.

The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, and the method that was used to determine their fair value, at December 31:

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Securities available for sale
Mortgage-backed Securities	$	-	$	-	$	704,933	$	756,156	$	-	$	-	$	704,933	$	756,156
Other securities		-		-		245,768		237,476		22,609		24,158		268,377		261,634
Interest rate swaps		-		-		84		2,081		-		-		84		2,081
Total assets	$	-	$	-	$	950,785	$	995,713	$	22,609	$	24,158	$	973,394	$	1,019,871
Liabilities:
Borrowings	$	-	$	-	$	-	$	-	$	28,771	$	29,570	$	28,771	$	29,570
Interest rate swaps		-		-		2,649		-		-		-		2,649		-
Total liabilities	$	-	$	-	$	2,649	$	-	$	28,771	$	29,570	$	31,420	$	29,570

The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the period indicated:

	Municipals			Trust preferred securities			Junior subordinated debentures
	(In thousands)
Beginning balance	$	9,223		$	14,935		$	29,570
Purchases		7,595			-			-
Principal repayments		(214	)		-			-
Maturities		(1,085	)		-			-
Sales		-			(11,133	)		-
Net gain from fair value adjustment of financial assets		-			71			-
Net gain from fair value adjustment of financial liabilities		-			-			(801	)
Increase in accrued interest payable		-			-			2
Change in unrealized gains included in other comprehensive income		-			3,217			-
Ending balance	$	15,519		$	7,090		$	28,771
Changes in unrealized held at period end	$	-		$	3,217		$	-

The following table sets forth the Company's assets and liabilities that are carried at fair value on a recurring basis, classified within Level 3 of the valuation hierarchy for the period indicated:

	For the year ended  December 31, 2013
	REMIC and CMO			Municipals			Trust preferred securities		Junior subordinated debentures
	(In thousands)
Beginning balance	$	23,475		$	9,429		$	6,650	$	23,922
Transfer into Level 3		-			-			6,126		-
Principal repayments		(5,036	)		(206	)		-		-
Sales		(19,973	)		-			-		-
Net gain from fair value adjustment of financial assets		-			-			884		-
Net loss from fair value adjustment of financial liabilities		-			-			-		5,651
Decrease in accrued interest payable		-			-			-		(3	)
Other-than-temporary impairment charge		(1,419	)		-			-		-
Change in unrealized gains (losses) included in other comprehensive income		2,953			-			1,275		-
Ending balance	$	-		$	9,223		$	14,935	$	29,570
Changes in unrealized held at period end	$	-		$	-		$	1,275	$	-

During the years ended December 31, 2014 and 2013, there were no transfers between Levels 1 and 2.

During the year ended December 31, 2014 there were no transfers between Level 3 and Level 2.

During the year ended December 31, 2013, transfers from Level 2 to Level 3 included one private issue trust preferred security for $6.1 million. This security was transferred due to illiquidity and reduced price transparency.

The following table presents the quantitative information about recurring Level 3 fair value of financial instruments and the fair value measurements as of December 31, 2014:

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Municipals	$	15,519	Discounted cash flows	Discount rate	0.2%	-	4.0%	(2.3%)
Trust Preferred Securities	$	7,090	Discounted cash flows	Discount rate	7.0%	-	7.25%	(7.2%)
Liabilities:
Junior subordinated debentures	$	28,771	Discounted cash flows	Discount rate		7.0%		(7.0%)

The significant unobservable inputs used in the fair value measurement of the Company’s municipal securities valued under Level 3 are the securities’ effective yield. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities valued under Level 3 are the securities’ effective yield, probability of default and loss severity in the event of default. Significant increases or decreases in any of the inputs in isolation would result in a significantly lower or higher fair value measurement.

The significant unobservable inputs used in the fair value measurement of the Company’s junior subordinated Debentures are effective yield. Significant increases or decreases in the effective yield in isolation would result in a significantly lower or higher fair value measurement.

The following table sets forth the Company's assets and liabilities that are carried at fair value on a non-recurring basis, and the method that was used to determine their fair value, at December 31:

	Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)				Total carried at fair value on a recurring basis
	2014		2013		2014		2013		2014		2013		2014		2013
Assets:
Loans held for sale	$	-	$	-	$	-	$	-	$	-	$	425	$	-	$	425
Impaired loans		-		-		-		-		22,174		23,544		22,174		23,544
Other real estate owned		-		-		-		-		6,326		2,985		6,326		2,985
Total assets	$	-	$	-	$	-	$	-	$	28,500	$	26,954	$	28,500	$	26,954

The following table presents the quantitative information about non-recurring Level 3 fair value of financial instruments and the fair value measurements as of December 31, 2014:

December 31, 2014	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
	(Dollars in thousands)
Assets:
Impaired loans	$	6,981	Income  approach	Capitalization rate	7.3%	to	8.5%	(7.8%)
				Loss severity discount	0.5%	to	81.7%	(21.3%)
Impaired loans	$	6,935	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-41.5%	to	40.0%	(-2.2%)
				Loss severity discount	1.8%	to	89.4%	(20.0%)
Impaired loans	$	8,258	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-55.0%	to	25.0%	(-6.1%)
				Capitalization rate	5.8%	to	11.0%	(8.0%)
				Loss severity discount	0.9%	to	74.4%	(30.0%)
Other real estate owned	$	4,768	Income  approach	Capitalization rate	9.0%	to	12.0%	(9.1%)
				Loss severity discount	0.9%	to	4.9%	(1.0%)
Other real estate owned	$	587	Sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-11.9%	to	15.0%	(-3.5%)
				Loss severity discount	0.0%	to	36.9%	(9.6%)
Other real estate owned	$	971	Blended income and sales approach	Adjustment to sales comparison value to reconcile differences between comparable sales	-25.0%	to	0.0%	(-8.9%)
				Capitalization rate	7.5%	to	8.0%	(7.7%)
				Loss severity discount	0.0%	to	6.2%	(3.0%)

The Company carries its Loans held for sale and OREO at the expected sales price less selling costs.

The Company carries its impaired collateral dependent loans at 85% of the appraised or internally estimated value of the underlying property.

The Company did not have any liabilities that were carried at fair value on a non-recurring basis at December 31, 2014 and 2013.

The estimated fair value of each material class of financial instruments at December 31, 2014 and 2013 and the related methods and assumptions used to estimate fair value are as follows:

Cash and Due from Banks, Overnight Interest-Earning Deposits and Federal Funds Sold:

The fair values of financial instruments that are short-term or reprice frequently and have little or no risk are considered to have a fair value that approximates carrying value (Level 1).

FHLB-NY stock:

The fair value is based upon the par value of the stock which equals its carrying value (Level 2).

Securities Available for Sale:

The estimated fair values of securities available for sale are contained in Note 6 of Notes to Consolidated Financial Statements. Fair value is based upon quoted market prices (Level 1 input), where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and adjusted for differences between the quoted instrument and the instrument being valued (Level 2 input). When there is limited activity or less transparency around inputs to the valuation, securities are valued using (Level 3 input).

Loans held for sale:

The fair value of non-performing loans held for sale is estimated through bids received on the loans and, as such, are classified as a Level 3 input.

Loans:

The estimated fair value of loans is estimated by discounting the expected future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and remaining maturities (Level 3 input).

For non-accruing loans, fair value is generally estimated by discounting management’s estimate of future cash flows with a discount rate commensurate with the risk associated with such assets or for collateral dependent loans 85% of the appraised or internally estimated value of the property (Level 3 input).

Due to Depositors:

The fair values of demand, passbook savings, NOW, money market deposits and escrow deposits are, by definition, equal to the amount payable on demand at the reporting dates (i.e. their carrying value) (Level 1). The fair value of fixed-maturity certificates of deposits are estimated by discounting the expected future cash flows using the rates currently offered for deposits of similar remaining maturities (Level 2 input).

Borrowings:

The estimated fair value of borrowings are estimated by discounting the contractual cash flows using interest rates in effect for borrowings with similar maturities and collateral requirements (Level 2 input) or using a market-standard model (Level 3 input).

Interest Rate Caps:

The estimated fair value of interest rate caps is based upon broker quotes (Level 2 input).

Interest Rate Swaps:

The estimated fair value of interest rate swaps is based upon broker quotes (Level 2 input).

Other Real Estate Owned:

OREO are carried at fair value less selling costs.  The fair value is based on appraised value through a current appraisal, or sometimes through an internal review, additionally adjusted by the estimated costs to sell the property (Level 3 input).

Other Financial Instruments:

The fair values of commitments to sell, lend or borrow are estimated using the fees currently charged or paid to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties or on the estimated cost to terminate them or otherwise settle with the counterparties at the reporting date. For fixed-rate loan commitments to sell, lend or borrow, fair values also consider the difference between current levels of interest rates and committed rates (where applicable).

At December 31, 2014 and 2013, the fair values of the above financial instruments approximate the recorded amounts of the related fees and were not considered to be material.

The following table sets forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at December 31, 2014:

	December 31, 2014
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	34,265	$	34,265	$	34,265	$	-	$	-
Mortgage-backed Securities		704,933		704,933		-		704,933		-
Other securities		268,377		268,377		-		245,768		22,609
Loans		3,810,373		3,871,087		-		-		3,871,087
FHLB-NY stock		46,924		46,924		-		46,924		-
Interest rate swaps		84		84		-		84		-
OREO		6,326		6,326		-		-		6,326
Total assets	$	4,871,282	$	4,931,996	$	34,265	$	997,709	$	3,900,022
Liabilities:
Deposits	$	3,508,598	$	3,524,123	$	2,202,775	$	1,321,348	$	-
Borrowings		1,056,492		1,070,428		-		1,041,657		28,771
Interest rate swaps		2,649		2,649		-		2,649		-
Total liabilities	$	4,567,739	$	4,597,200	$	2,202,775	$	2,365,654	$	28,771

The following table sets forth the carrying amounts and estimated fair values of selected financial instruments based on the assumptions described above used by the Company in estimating fair value at December 31, 2013:

	December 31, 2013
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Cash and due from banks	$	33,485	$	33,485	$	33,485	$	-	$	-
Mortgage-backed Securities		756,156		756,156		-		756,156		-
Other securities		261,634		261,634		-		237,476		24,158
Loans held for sale		425		425		-		-		425
Loans		3,434,178		3,502,792		-		-		3,502,792
FHLB-NY stock		46,025		46,025		-		46,025		-
Interest rate caps		-		-		-		-		-
Interest rate swaps		2,081		2,081		-		2,081		-
OREO		2,985		2,985		-		-		2,985
Total assets	$	4,536,969	$	4,605,583	$	33,485	$	1,041,738	$	3,530,360
Liabilities:
Deposits	$	3,232,780	$	3,253,261	$	2,111,825	$	1,141,436	$	-
Borrowings		1,012,122		1,034,799		-		1,005,229		29,570
Total liabilities	$	4,244,902	$	4,288,060	$	2,111,825	$	2,146,665	$	29,570

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Note 11 - Stock-Based Compensation (Details) - Phantom Stock Plan (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2012
Phantom Stock Plan [Abstract]
Shares		59,323
Fair Value		$ 20.70
Vested at December 31, 2014	66,996
Vested at December 31, 2014	$ 20.27
Granted	9,631
Granted	$ 19.85
Forfeited	(56)
Forfeited	$ 19.73
Distributions	(1,785)
Distributions	$ 19.60
Shares	67,113	59,323
Fair Value	$ 20.27	$ 20.70

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Note 22 - Parent Company Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Condensed Balance Sheet [Table Text Block]

Condensed Statements of Financial Condition	December 31, 2014			December 31, 2013
	(Dollars in thousands)
Assets:
Cash and due from banks	$	7,749		$	16,525
Securities available for sale:
Other securities ($864 and $2,562 at fair value pursuant to the fair value option at December 31, 2014 and 2013, respectively)		1,156			2,849
Interest receivable		4			4
Investment in subsidiaries		482,996			449,580
Goodwill		2,185			2,185
Other assets		4,402			4,354
Total assets	$	498,492		$	475,497
Liabilities:
Borrowings (at fair value pursuant to the fair value option at December 31, 2014 and 2013)	$	28,770		$	29,570
Other liabilities		13,475			13,395
Total liabilities		42,245			42,965
Stockholders' Equity:
Preferred stock		-			-
Common stock		315			315
Additional paid-in capital		206,437			201,902
Treasury stock, at average cost (2,126,772 shares and 1,407,343 at December 31, 2014 and 2013, respectively)		(37,221	)		(22,053	)
Retained earnings		289,623			263,743
Accumulated other comprehensive loss, net of taxes		(2,907	)		(11,375	)
Total equity		456,247			432,532
Total liabilities and equity	$	498,492		$	475,497

Condensed Income Statement [Table Text Block]

	For the years ended December 31,
Condensed Statements of Income	2014			2013			2012
	(In thousands)
Dividends from the Bank	$	20,000		$	20,000		$	20,000
Interest income		512			590			694
Interest expense		(1,039	)		(1,066	)		(2,957	)
Gain on sale of securities		-			17			-
Net gain (loss) from fair value adjustments		779			(5,475	)		1,991
Other operating expenses		(786	)		(621	)		(730	)
Income before taxes and equity in undistributed earnings of subsidiary		19,466			13,445			18,998
Income tax benefit		668			2,857			498
Income before equity in undistributed earnings of subsidiary		20,134			16,302			19,496
Equity in undistributed earnings of the Bank		24,105			21,450			14,835
Net income	$	44,239		$	37,752		$	34,331

Condensed Cash Flow Statement [Table Text Block]

	For the years ended December 31,
Condensed Statements of Cash Flows	2014			2013			2012
	(In thousands)
Operating activities:
Net income	$	44,239		$	37,752		$	34,331
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the Bank		(24,105	)		(21,450	)		(14,835	)
Net gain on sale of securities		-			(17	)		-
Deferred income tax (benefit) provision		17			(2,348	)		858
Fair value adjustments for financial assets and financial liabilities		(779	)		5,475			(1,991	)
Stock based compensation expense		4,246			3,068			3,105
Net change in operating assets and liabilities		2,088			1,746			1,287
Net cash provided by operating activities		25,706			24,226			22,755
Investing activities:
Purchases of securities available for sale		(22	)		(23	)		(29	)
Proceeds from sales and calls of securities available for sale		1,699			517			-
Net cash provided by (used in) investing activities		1,677			494			(29	)
Financing activities:
Purchase of treasury stock		(18,872	)		(14,151	)		(5,622	)
Cash dividends paid		(17,852	)		(15,618	)		(15,817	)
Stock options exercised		565			533			956
Net cash used in  financing activities		(36,159	)		(29,236	)		(20,483	)
Net (decrease) increase in cash and cash equivalents		(8,776	)		(4,516	)		2,243
Cash and cash equivalents, beginning of year		16,525			21,041			18,798
Cash and cash equivalents, end of year	$	7,749		$	16,525		$	21,041

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Employee Pension Plan’s Assets that are Carried at Fair Value, and the Method Used to Determine Fair Value (Retirement Plan [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Pooled Separate Accounts
Plan Invesments	$ 20,509		$ 20,496		$ 17,300
U.S. large-cap growth [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[1]
U.S. large-cap growth [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	4,832		4,609	[1]
U.S. large-cap growth [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[1]
U.S. large-cap growth [Member]
Pooled Separate Accounts
Plan Invesments	4,832	[1]	4,609	[1]
U.S. large-cap value [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[2]
U.S. large-cap value [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	4,939		4,625	[2]
U.S. large-cap value [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[2]
U.S. large-cap value [Member]
Pooled Separate Accounts
Plan Invesments	4,939	[2]	4,625	[2]
U.S. Small-Cap Blend [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[3]
U.S. Small-Cap Blend [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	2,163		2,536	[3]
U.S. Small-Cap Blend [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[3]
U.S. Small-Cap Blend [Member]
Pooled Separate Accounts
Plan Invesments	2,163	[3]	2,536	[3]
International blend [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[4]
International blend [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	1,966		2,336	[4]
International blend [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[4]
International blend [Member]
Pooled Separate Accounts
Plan Invesments	1,966	[4]	2,336	[4]
PIMCO bond fund [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[5]
PIMCO bond fund [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	6,274		5,993	[5]
PIMCO bond fund [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[5]
PIMCO bond fund [Member]
Pooled Separate Accounts
Plan Invesments	6,274	[5]	5,993	[5]
Prudential short term [Member] | Fair Value, Inputs, Level 1 [Member]
Pooled Separate Accounts
Plan Invesments				[6]
Prudential short term [Member] | Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	335		397	[6]
Prudential short term [Member] | Fair Value, Inputs, Level 3 [Member]
Pooled Separate Accounts
Plan Invesments				[6]
Prudential short term [Member]
Pooled Separate Accounts
Plan Invesments	335	[6]	397	[6]
Fair Value, Inputs, Level 2 [Member]
Pooled Separate Accounts
Plan Invesments	$ 20,509		$ 20,496

[1] Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index. The portfolio will typically hold between 55 and 70stocks.

[2] Comprised of large-cap stocks seeking to outperform the Russell 1000 Value benchmark over the rolling three and five year periods, or a full market cycle,whichever is longer.

[3] Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the timeof purchase. The portfolio will typically hold between 40 and 100 stocks.

[4] Comprised of non-U.S. domiciled stocks. The portfolio will typically hold between 80 and 90 stocks.

[5] Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.

[6] Comprised of money market instruments with an emphasis on safety and liquidity.

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Note 11 - Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Note 11 - Stock-Based Compensation (Tables) [Line Items]

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

	Shares			Weighted-Average Grant-Date Fair Value
Non-vested at December 31, 2013		346,584		$	14.08
Granted		266,895			20.17
Vested		(220,863	)		16.80
Forfeited		(19,462	)		15.59
Non-vested at December 31, 2014		373,154		$	16.75
Vested but unissued at December 31, 2014		233,836		$	16.93

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

(In thousands, except grant date fair value)	2014		2013		2012
Proceeds from stock options exercised	$	565	$	533	$	885
Fair value of shares received upon exercise of stock options		1,962		6,814		905
Tax benefit related to stock options exercised		88		151		56
Intrinsic value of stock options exercised		488		1,228		256
Weighted average fair value on grant date		n/a		n/a		n/a

Non-Full Value Awards [Member]

Note 11 - Stock-Based Compensation (Tables) [Line Items]

Schedule of Share-based Compensation, Activity [Table Text Block]

	Shares			Weighted- Average Exercise Price		Weighted-Average Remaining Contractual (years)			Aggregate Intrinsic Value $(000) *
Outstanding at December 31, 2013		306,630		$	16.02
Granted		-			-
Exercised		(150,115	)		16.83
Forfeited		(1,600	)		19.37
Outstanding at December 31, 2014		154,915		$	15.19		3.2	$	787
Exercisable shares at December 31, 2014		154,915		$	15.19		3.2	$	787

Phantom Share Units (PSUs) [Member]

Note 11 - Stock-Based Compensation (Tables) [Line Items]

Schedule of Share-based Compensation, Activity [Table Text Block]

Phantom Stock Plan	Shares			Fair Value
Outstanding at December 31, 2013		59,323		$	20.70
Granted		9,631			19.85
Forfeited		(56	)		19.73
Distributions		(1,785	)		19.60
Outstanding at December 31, 2014		67,113		$	20.27
Vested at December 31, 2014		66,996		$	20.27

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used in Determining the Actuarial Present Value of the Accumulated Postretirement Benefit Obligations	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Rate of increase in health care costs
Initial	9.00%	10.00%	10.50%
Ultimate (year 2018)	5.00%	5.00%	5.50%
Initial [Member] | Postretirement Plans [Member]
Rate of increase in health care costs
Initial	8.00%	9.00%
Ultimate Year 2018 [Member] | Postretirement Plans [Member]
Rate of increase in health care costs
Ultimate (year 2018)	5.00%	5.00%
Postretirement Plans [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - Assumptions Used in Determining the Actuarial Present Value of the Accumulated Postretirement Benefit Obligations [Line Items]
Rate of return on plan assets
Discount rate	3.76%	4.60%
Rate of increase in health care costs
Annual rate of salary increase for life insurance

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Comprehensive Income
Net income	$ 44,239	$ 37,752	$ 34,331
Unrecognized actuarial (losses) gains	(3,790)	3,261	(479)
Amortization of actuarial losses	370	696	587
Amortization of prior service credit	(26)	(26)	(26)
OTTI charges included in income		798	437
Reclassification adjustment for net gains included in income	(1,634)	(1,700)	(26)
Unrealized gains (losses) on securities	13,548	(26,541)	6,831
Comprehensive income	$ 52,707	$ 14,240	$ 41,655

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Note 10 - Income Taxes (Details) - Effective Income Tax Rate Reconciliation (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Effective Income Tax Rate Reconciliation [Abstract]
Taxes at federal statutory rate									$ 25,484	$ 21,248	$ 19,662
Taxes at federal statutory rate									35.00%	35.00%	35.00%
Increase (reduction) in taxes resulting from:
State and local income tax, net of Federal income tax benefit									4,980	3,648	3,320
State and local income tax, net of Federal income tax benefit									6.80%	6.00%	5.90%
Other									(1,891)	(1,940)	(1,135)
Other									(2.60%)	(3.20%)	(2.00%)
Taxes at effective rate	$ 6,988	$ 7,060	$ 7,598	$ 6,927	$ 6,458	$ 6,024	$ 6,155	$ 4,319	$ 28,573	$ 22,956	$ 21,847
Taxes at effective rate									39.20%	37.80%	38.90%

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Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Summary of Significant Accounting Policies

The accounting and reporting policies of the Company follow generally accepted accounting principles in the United States of America (“GAAP”) and general practices within the banking industry. The policies which materially affect the determination of the Company’s financial position, results of operations and cash flows are summarized below.

Principles of Consolidation:

The accompanying consolidated financial statements include the accounts of the Holding Company and the following direct and indirect wholly-owned subsidiaries of the Holding Company: the Bank, Flushing Preferred Funding Corporation (“FPFC”), Flushing Service Corporation (“FSC”), and FSB Properties Inc. (“Properties”). FPFC is a real estate investment trust formed to hold a portion of the Bank’s mortgage loans to facilitate access to capital markets. FSC was formed to market insurance products and mutual funds. Properties is currently used to hold title to real estate owned that is obtained via foreclosure.  All intercompany transactions and accounts are eliminated in consolidation. The Holding Company currently has three unconsolidated subsidiaries in the form of wholly-owned statutory business trusts, which were formed to issue guaranteed capital debentures (“capital securities”). Please see Note 9, “Borrowed Funds and Securities Sold Under Agreements to Repurchase,” for additional information regarding these trusts.

Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Estimates that are particularly susceptible to change in the near term are used in connection with the determination of the allowance for loan losses, the evaluation of goodwill for impairment, the review of the need for a valuation allowance of the Company’s deferred tax assets, the fair value of the investment portfolio and the evaluation of other-than-temporary impairment (“OTTI”) on securities. The current economic environment has increased the degree of uncertainty inherent in these material estimates.  Actual results could differ from these estimates.

Cash and Cash Equivalents:

For the purpose of reporting cash flows, the Company defines cash and due from banks, overnight interest-earning deposits and federal funds sold with original maturities of 90 days or less as cash and cash equivalents. At December 31, 2014 and 2013, the Company’s cash and cash equivalents totaled $34.3 million and $33.5 million, respectively. Included in cash and cash equivalents at those dates were $23.0 million and $23.7 million in interest-earning deposits in other financial institutions, primarily consisting of balances due from the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York (“FHLB-NY”). The Bank is required to maintain cash reserves equal to a percentage of certain deposits. The reserve requirement totaled $7.5 million and $10.1 million at December 31, 2014 and 2013, respectively.

Securities Available for Sale:

Securities are classified as available for sale when management intends to hold the securities for an indefinite period of time or when the securities may be utilized for tactical asset/liability purposes and may be sold from time to time to effectively manage interest rate exposure and resultant prepayment risk and liquidity needs. Premiums and discounts are amortized or accreted, respectively, using the level-yield method. Realized gains and losses on the sales of securities are determined using the specific identification method. Unrealized gains and losses (other than unrealized losses considered other-than-temporary which are recognized in the Consolidated Statements of Income) on securities available for sale are excluded from earnings and reported as part of accumulated other comprehensive income, net of taxes. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the current interest rate environment, (3) the financial condition and near-term prospects of the issuer, if applicable, and (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Other-than-temporary impairment losses for debt securities are measured using a discounted cash flow model. Other-than-temporary impairment losses for equity securities are measured using quoted market prices, when available, or, when market quotes are not available due to an illiquid market, we use an impairment model from a third party or quotes from investment brokers.

Goodwill:

Goodwill is presumed to have an indefinite life and is tested annually, or when certain conditions are met, for impairment, rather than amortized. If the fair value of the reporting unit is greater than the goodwill amount, no further evaluation is required. If the fair value of the reporting unit is less than the goodwill amount, further evaluation would be required to compare the fair value of the reporting unit to the goodwill amount and determine if a write down is required.

The FASB issued ASU 2011-08, which gives entities the option of first performing a qualitative assessment to test goodwill for impairment on a reporting-unit-by-reporting-unit basis. If, after performing the qualitative assessment, an entity concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the entity would perform the two-step goodwill impairment test described in ASC 350. However, if, after applying the qualitative assessment, the entity concludes that it is not more likely than not that the fair value is less than the carrying amount, the two-step goodwill impairment test is not required.

In performing the goodwill impairment testing, the Company has identified a single reporting unit. The Company performed the qualitative assessment as outlined in ASU 2011-08 in assessing the carrying value of goodwill as of December 31, 2014 and determined that there was no goodwill impairment. At December 31, 2014, the carrying amount of goodwill totaled $16.1 million. The identification of additional reporting units, the use of other valuation techniques and/or changes to input assumptions used in the analysis could result in materially different evaluations of goodwill impairment.

Loans:

Loans are reported at their principal outstanding balance net of any unearned income, charge-offs, deferred loan fees and costs on originated loans and unamortized premiums or discounts on purchased loans. Interest on loans is recognized on the accrual basis. The accrual of income on loans is generally discontinued when certain factors, such as contractual delinquency of 90 days or more, indicate reasonable doubt as to the timely collectability of such income. Uncollected interest previously recognized on non-accrual loans is reversed from interest income at the time the loan is placed on non-accrual status. A non-accrual loan can be returned to accrual status when contractual delinquency returns to less than 90 days delinquent. Subsequent cash payments received on non-accrual loans that do not bring the loan to less than 90 days delinquent are recorded on a cash basis. Subsequent cash payments can also be applied first as a reduction of principal until all principal is recovered and then subsequently to interest, if in management’s opinion, it is evident that recovery of all principal due is unlikely to occur. Loan fees and certain loan origination costs are deferred. Net loan origination costs and premiums or discounts on loans purchased are amortized into interest income over the contractual life of the loans using the level-yield method. Prepayment penalties received on loans which pay in full prior to their scheduled maturity are included in interest income in the period they are collected.

Allowance for Loan Losses:

The Company maintains an allowance for loan losses at an amount, which, in management’s judgment, is adequate to absorb probable estimated losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance is established through a provision for loan losses based on management’s evaluation of the risk inherent in the various components of the loan portfolio and other factors, including historical loan loss experience (which is updated quarterly), current economic conditions, delinquency and non-accrual trends, classified loan levels, risk in the portfolio and volumes and trends in loan types, recent trends in charge-offs, changes in underwriting standards, experience, ability and depth of the Company’s  lenders, collection policies and experience, internal loan review function and other external factors.  Additionally, the Company segregated our loans into two portfolios based on year of origination. One portfolio was reviewed for loans originated after December 31, 2009 and a second portfolio for loans originated prior to January 1, 2010. Our decision to segregate the portfolio based upon origination dates was based on changes made in our underwriting standards during 2009. By the end of 2009, all loans were being underwritten based on revised and tightened underwriting standards.  Loans originated prior to 2010 have a higher delinquency rate and loss history. Each of the years in the portfolio for loans originated prior to 2010 has a similar delinquency rate. The determination of the amount of the allowance for loan losses includes estimates that are susceptible to significant changes due to changes in appraisal values of collateral, national and local economic conditions and other factors. We review our loan portfolio by separate categories with similar risk and collateral characteristics. Impaired loans are segregated and reviewed separately. All non-accrual loans are classified impaired. The Company’s Board of Directors reviews and approves management’s evaluation of the adequacy of the allowance for loan losses on a quarterly basis.

The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Increases and decreases in the allowance other than charge-offs and recoveries are included in the provision for loan losses. When a loan or a portion of a loan is determined to be uncollectible, the portion deemed uncollectible is charged against the allowance, and subsequent recoveries, if any, are credited to the allowance.

The Company recognizes a loan as non-performing when the borrower has demonstrated the inability to bring the loan current, or due to other circumstances which, in management’s opinion, indicate the borrower will be unable to bring the loan current within a reasonable time. All loans classified as non-performing, which includes all loans past due 90 days or more, are classified as non-accrual unless there is, in our opinion, compelling evidence the borrower will bring the loan current in the immediate future. Appraisals are obtained and/or updated internal evaluations are prepared as soon as practical, and before the loan becomes 90 days delinquent. The loan balances of collateral dependent impaired loans are compared to the property’s updated fair value. The Company considers fair value of collateral dependent loans to be 85% of the appraised or internally estimated value of the property. The balance which exceeds fair value is generally charged-off.  Management reviews the allowance for loan losses on a quarterly basis, and records as a provision the amount deemed appropriate, after considering items such as, current year charge-offs, charge-off trends, new loan production, current balance by particular loan categories, and delinquent loans by particular loan categories.

A loan is considered impaired when, based upon current information, the Company believes it is probable that it will be unable to collect all amounts due, both principal and interest, in accordance with the original terms of the loan. Impaired loans are measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or, as a practical expedient, the fair value of the collateral if the loan is collateral dependent. Interest income on impaired loans is recorded on the cash basis. The Company’s management considers all non-accrual loans impaired.

The Company reviews each impaired loan on an individual basis to determine if either a charge-off or a valuation allowance needs to be allocated to the loan. The Company does not charge-off or allocate a valuation allowance to loans for which management has concluded the current value of the underlying collateral will allow for recovery of the loan balance either through the sale of the loan or by foreclosure and sale of the property.

The Company evaluates the underlying collateral through a third party appraisal, or when a third party appraisal is not available, the Company will use an internal evaluation. The internal evaluations are prepared using an income approach or a sales approach. The income approach is used for income producing properties and uses current revenues less operating expenses to determine the net cash flow of the property. Once the net cash flow is determined, the value of the property is calculated using an appropriate capitalization rate for the property. The sales approach uses comparable sales prices in the market.  When an internal evaluation is used, we place greater reliance on the income approach to value the collateral.

In preparing internal evaluations of property values, the Company seeks to obtain current data on the subject property from various sources, including: (1) the borrower; (2) copies of existing leases; (3) local real estate brokers and appraisers; (4) public records (such as real estate taxes and water and sewer charges); (5) comparable sales and rental data in the market; (6) an inspection of the property and (7) interviews with tenants. These internal evaluations primarily focus on the income approach and comparable sales data to value the property.

As of December 31, 2014, we utilized recent third party appraisals of the collateral to measure impairment for $31.0 million, or 68.8%, of collateral dependent impaired loans, and used internal evaluations of the property’s value for $14.1 million, or 31.2%, of collateral dependent impaired loans.

The Company may restructure a loan to enable a borrower experiencing financial difficulties to continue making payments when it is deemed to be in the Company’s best long-term interest. This restructure may include reducing the interest rate or amount of the monthly payment for a specified period of time, after which the interest rate and repayment terms revert to the original terms of the loan. We classify these loans as Troubled Debt Restructured (“TDR”).

These restructurings have not included a reduction of principal balance. The Company believes that restructuring these loans in this manner will allow certain borrowers to become and remain current on their loans. Restructured loans are classified as a TDR when the Bank grants a concession to a borrower who is experiencing financial difficulties. All loans classified as TDR are considered impaired, however TDR loans which have been current for six consecutive months at the time they are restructured as TDR remain on accrual status and are not included as part of non-performing loans. Loans which were delinquent at the time they are restructured as a TDR are placed on non-accrual status and reported as non-performing loans until they have made timely payments for six consecutive months. Loans that are restructured as TDR but are not performing in accordance with the restructured terms are placed on non-accrual status and reported as non-performing loans.

The allocation of a portion of the allowance for loan losses for a performing TDR loan is based upon the present value of the future expected cash flows discounted at the loan’s original effective rate, or for a non-performing TDR which is collateral dependent, the fair value of the collateral. At December 31, 2014, there were no commitments to lend additional funds to borrowers whose loans were modified to a TDR. The modification of loans to a TDR did not have a significant effect on our operating results, nor did it require a significant allocation of the allowance for loan losses.

Loans Held for Sale:

Loans held for sale are carried at the lower of cost or estimated fair value. At December 31, 2014, there were no loans classified as held for sale. At December 31, 2013, loans held for sale consisted of one non-performing multi-family residential loan for $0.4 million.

Bank Owned Life Insurance:

Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. BOLI is carried in the consolidated statements of financial position at its cash surrender value. Increases in the cash value of the policies, as well as proceeds received, are recorded in other non-interest income, and are not subject to income taxes.

Other Real Estate Owned:

Other real estate owned (“OREO”) consists of property acquired by foreclosure. These properties are carried at fair value. The fair value is based on appraised value through a current appraisal, or at times through an internal review, additionally adjusted by the estimated costs to sell the property.  This determination is made on an individual asset basis. If the fair value of a property is less than the carrying amount, the difference is recognized as a valuation allowance. Further decreases to the estimated value will be charged directly to expense.

Bank Premises and Equipment:

Bank premises and equipment are stated at cost, less depreciation accumulated on a straight-line basis over the estimated useful lives of the related assets (3 to 40 years). Leasehold improvements are amortized on a straight-line basis over the term of the related leases or the lives of the assets, whichever is shorter. Maintenance, repairs and minor improvements are charged to non-interest expense in the period incurred.

Federal Home Loan Bank Stock:

The FHLB-NY has assigned to the Bank a mandated membership stock purchase, based on its asset size.  In addition, for all borrowing activity, the Bank is required to purchase shares of FHLB-NY non-marketable capital stock at par.  Such shares are redeemed by FHLB-NY at par with reductions in the Bank’s borrowing levels. The Bank carries its investment in FHLB-NY stock at historical cost. The Company periodically reviews its FHLB-NY stock to determine if impairment exists.  At December 31, 2014, the Company considered among other things the earnings performance, credit rating and asset quality of the FHLB-NY. Based on this review, the Company did not consider the value of our investment in FHLB-NY stock to be impaired at December 31, 2014.

Securities Sold Under Agreements to Repurchase:

Securities sold under agreements to repurchase are accounted for as collateralized financing and are carried at amounts at which the securities will be subsequently reacquired as specified in the respective agreements. Interest incurred under these agreements is included in other interest expense.

Income Taxes:

Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between book and tax bases of the various balance sheet assets and liabilities. A deferred tax liability is recognized on all taxable temporary differences and a deferred tax asset is recognized on all deductible temporary differences and operating losses and tax credit carry-forwards.  A valuation allowance is recognized to reduce the potential deferred tax asset if it is “more likely than not” that all or some portion of that potential deferred tax asset will not be realized.  The Company must also take into account changes in tax laws or rates when valuing the deferred income tax amounts it carries on its Consolidated Statements of Financial Condition.

Stock Compensation Plans:

The Company accounts for its stock based compensation in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718 “Stock Compensation” which establishes fair value as the measurement objective in accounting for share-based payment arrangements and requires a fair-value-based measurement method in accounting for share-based payment transactions with employees. It also requires measurement of the cost of employee services received in exchange for an award of an equity instrument based on the grant date fair value of the award.  That cost is recognized over the period during which an employee is required to provide service in exchange for the award. The requisite service period is usually the vesting period.

Benefit Plans:

The Company sponsors a qualified pension, 401(k), and profit sharing plan for its employees. The Company also sponsors postretirement health care and life insurance benefits plans for its employees, a non-qualified deferred compensation plan for officers who have achieved the level of at least senior vice president, and a non-qualified pension plan for its outside directors.

The Company recognizes the funded status of a benefit plan – measured as the difference between plan assets at fair value and the benefit obligation – in the statement of financial condition, with the unrecognized credits and charges recognized, net of taxes, as a component of accumulated other comprehensive income. These credits or charges arose as a result of gains or losses and prior service costs or credits that arose during prior periods but were not recognized as components of net periodic benefit cost.

Treasury Stock:

The Company records treasury stock at cost. Treasury stock is reissued at average cost.

Derivatives:

Derivatives are required to be recorded on the Consolidated Statements of Financial Condition at fair value. The Company records derivatives on a gross basis in “Other assets” and “Other liabilities” in the Consolidated Statements of Financial Condition.  The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued.

Segment Reporting:

Management views the Company as operating as a single unit, a community bank. Therefore, segment information is not provided.

Advertising Expense:

Costs associated with advertising are expensed as incurred. The Company recorded advertising expenses of $1.8 million, $1.9 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Earnings per Common Share:

Earnings per share are computed in accordance with ASC Topic 260 “Earnings Per Share.” Basic earnings per common share is computed by dividing net income available to common shareholders by the total weighted average number of common shares outstanding, which includes unvested participating securities. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and as such are included in the calculation of earnings per share.  The Company’s unvested restricted stock and restricted stock unit awards are considered participating securities. Therefore, weighted average common shares outstanding used for computing basic earnings per common share includes common shares outstanding plus unvested restricted stock and restricted stock unit awards. The computation of diluted earnings per share includes the additional dilutive effect of stock options outstanding and other common stock equivalents during the period.  Common stock equivalents that are anti-dilutive are not included in the computation of diluted earnings per common share. The numerator for calculating basic and diluted earnings per common share is net income available to common shareholders. The shares held in the Company’s Employee Benefit Trust are not included in shares outstanding for purposes of calculating earnings per common share.

Earnings per common share have been computed based on the following, for the years ended December 31:

	2014			2013			2012
	(In thousands, except per share data)
Net income, as reported	$	44,239		$	37,752		$	34,331
Divided by:
Weighted average common shares outstanding		29,788			30,047			30,402
Weighted average common stock equivalents		29			26			31
Total weighted average common shares outstanding and common stock equivalents		29,817			30,073			30,433
Basic earnings per common share	$	1.49		$	1.26		$	1.13
Diluted earnings per common share	$	1.48		$	1.26		$	1.13
Dividend Payout ratio		40.3	%		41.3	%		46.0	%

There were no options that were anti-dilutive for the year ended December 31, 2014. Options to purchase 151,900 shares, at an average exercise price of $18.55, and 550,400 shares, at an average exercise price of $17.63, are anti-dilutive and were not included in the computation of diluted earnings per common share for the years ended December 31, 2013 and 2012, respectively.

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Note 3 - Loans (Details) - Non-performing Loans (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	$ 2,301	$ 606
Non-accrual loans	31,890	47,977
Total non-accrual loans and ninety days or more past due and still accruing	34,191	48,583
Multi-Family Residential [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	6,878	13,297
Multi-Family Residential [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	676	52
Commercial Real Estate Loans [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	5,689	9,962
Commercial Real Estate Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	820
One-To-Four Family - Mixed-Use Property [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	6,936	9,063
One-To-Four Family - Mixed-Use Property [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	405
One-To-Four Family - Residential [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	11,244	13,250
One-To-Four Family - Residential [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	14	15
Commercial Business And Other [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	1,143	2,348
Commercial Business And Other [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Loans ninety days or more past due and still accruing	386	539
Non-accrual loans	1,143	2,348
Co-Operative Apartments [Member] | Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans		57
Mortgage Loans [Member]
Note 3 - Loans (Details) - Non-performing Loans [Line Items]
Non-accrual loans	$ 30,747	$ 45,629

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Note 9 - Borrowed Funds and Securities Sold Under Agreements to Repurchase (Details) - Borrowed Funds and Securities Sold Under Agreements to Repurchase (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Repurchase agreements - fixed rate:
Amount, repurchase agreements - fixed rate	$ 116,000	$ 155,300
Weighted Average Rate, repurchase agreements - fixed rate	3.18%	3.41%
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	911,721	827,252
Weighted Average Rate, FHLB-NY advances - fixed rate	1.44%	1.48%
Junior subordinated debentures - adjustable rate
Due in 2037	61,900
Total borrowings	1,056,492	1,012,122
Total borrowings	1.75%	1.90%
Due in 2014 [Member]
Repurchase agreements - fixed rate:
Amount, repurchase agreements - fixed rate		9,300
Weighted Average Rate, repurchase agreements - fixed rate		1.27%
Due in 2016 [Member]
Repurchase agreements - fixed rate:
Amount, repurchase agreements - fixed rate	38,000	68,000
Weighted Average Rate, repurchase agreements - fixed rate	1.92%	3.27%
Due in 2017 [Member]
Repurchase agreements - fixed rate:
Amount, repurchase agreements - fixed rate	38,000	38,000
Weighted Average Rate, repurchase agreements - fixed rate	4.16%	4.16%
Due in 2020 [Member]
Repurchase agreements - fixed rate:
Amount, repurchase agreements - fixed rate	40,000	40,000
Weighted Average Rate, repurchase agreements - fixed rate	3.45%	3.45%
Due in 2037 [Member]
Junior subordinated debentures - adjustable rate
Due in 2037	28,771	29,570
Due in 2037	5.96%	5.67%
Due in 2014 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate		89,500
Weighted Average Rate, FHLB-NY advances - fixed rate		0.63%
Due in 2015 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	185,551	166,732
Weighted Average Rate, FHLB-NY advances - fixed rate	0.80%	1.21%
Due in 2016 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	315,847	331,062
Weighted Average Rate, FHLB-NY advances - fixed rate	1.15%	1.20%
Due in 2017 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	305,525	174,160
Weighted Average Rate, FHLB-NY advances - fixed rate	2.12%	2.79%
Due in 2018 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	74,798	65,798
Weighted Average Rate, FHLB-NY advances - fixed rate	1.29%	1.24%
Due in 2019 [Member]
FHLB-NY advances - fixed rate:
Amount, FHLB-NY advances - fixed rate	$ 30,000
Weighted Average Rate, FHLB-NY advances - fixed rate	1.83%

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - For the Postretirement Plans, the Change in Benefit Obligation and Assets (Postretirement Plans [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Postretirement Plans [Member]
Change in benefit obligation:
Projected benefit obligation, balance	$ 5,586	$ 5,927
Service cost	358	449	400
Interest cost	253	219	217
Actuarial loss (gain)	1,925	(943)
Benefits paid	(49)	(66)
Projected benefit obligation, balance	8,073	5,586	5,927
Change in plan assets:
Employer contributions	49	66
Benefits paid	(49)	(66)
Accrued pension cost included in other liabilities	$ (8,073)	$ (5,586)

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Note 5 - Other Real Estate Owned (Details) - Gross Gains, Gross Losses and Write-Downs of Oreo Reported in the Consolidated Statements of Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Gross Gains, Gross Losses and Write-Downs of Oreo Reported in the Consolidated Statements of Income [Abstract]
Gross gains	$ 178	$ 443	$ 78
Gross losses	(109)	(89)	(255)
Write-down of carrying value	(5)	(243)	(516)
Total	$ 64	$ 111	$ (693)

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Note 19 - Derivative Financial Instruments

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

19. Derivative Financial Instruments

At December 31, 2014, the Company’s derivative financial instruments consisted of interest rate swaps and at December 31, 2013, the Company’s derivative financial instruments consisted of purchased options and interest rate swaps. The Company’s interest rate swaps are used to mitigate the Company’s exposure to rising interest rates on a portion ($18.0 million) of its floating rate junior subordinated debentures that have a contractual value of $61.9 million. Additionally, the Company at times may use interest rate swaps to mitigate the Company’s exposure to rising interest rates on its fixed rate loans.

The purchased options, which expired during 2014, were used to mitigate the Company’s exposure to rising interest rates on its financial liabilities without stated maturities.

At December 31, 2014 and 2013 derivatives with a combined notional amount of $36.3 million and $118.0 million, respectively, were not designated as hedges. Derivatives with a combined notional amount of $14.5 million and $11.2 million were designated as fair value hedges at December 31, 2014 and 2013, respectively. Changes in the fair value of the derivatives not designated as hedges are reflected in “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.  The portion of the change in the fair value of the derivative designated as a fair value hedge which is considered ineffective is reflected in “Net gain/loss from fair value adjustments” in the Consolidated Statements of Income.

The following table sets forth information regarding the Company’s derivative financial instruments at December 31, 2014:

	At or for the year ended December 31, 2014
	Notional Amount		Net Carrying Value (1)
	(In thousands)
Interest rate swaps (non-hedge)	$	36,321	$	(2,239	)
Interest rate swaps (hedge)		4,131		84
Interest rate swaps (hedge)		10,340		(410	)
Total derivatives	$	50,792	$	(2,565	)

The following table sets forth information regarding the Company’s derivative financial instruments at December 31, 2013:

	At or for the year ended December 31, 2013
	Notional Amount		Purchase Price		Net Carrying Value (1)
	(In thousands)
Interest rate caps (non-hedge)	$	100,000	$	9,035	$	-
Interest rate swaps (non-hedge)		18,000		-		1,681
Interest rate swaps (hedge)		11,217		-		400
Total derivatives	$	129,217	$	9,035	$	2,081

(1) Derivatives in a net positive position are recorded as “Other assets” and derivatives in a net negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition. There were no unrealized losses on derivative financial instruments at December 31, 2014 and 2013.

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income for the periods indicated:

	For the year ended December 31,
(In thousands)	2014			2013			2012
Financial Derivatives:
Interest rate caps (non-hedge)	$	-		$	(18	)	$	(337	)
Interest rate swaps (non-hedge)		(3,919	)		3,603			(1,927	)
Interest rate swaps (hedge)		(124	)		29			-
Net Gain (loss) (1)	$	(4,043	)	$	3,614		$	(2,264	)

(1) Net gains (losses) are recorded as “Net gain (losses) from fair value adjustments” in the Consolidated Statements of Income.

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Note 13 - Stockholders' Equity (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note 13 - Stockholders' Equity (Details) [Line Items]
Treasury Stock, Shares, Acquired	914,671	836,092
Treasury Stock Acquired, Average Cost Per Share	$ 19.29	$ 15.73
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 635,199
Common Stock [Member] | Shareholder Rights Plan [Member]
Note 13 - Stockholders' Equity (Details) [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1
Common Stock Equivalent [Member] | Shareholder Rights Plan [Member]
Note 13 - Stockholders' Equity (Details) [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	1
Shareholder Rights Plan [Member]
Note 13 - Stockholders' Equity (Details) [Line Items]
Number of Rights To Purchase Series A Junior Participating Preferred Stock Per Common Stock Owned	1
Purchase Price of Series A Junior Participating Preferred Stock, Per Right To Purchase	65
Percentage Ownership of Holding Company's Common Stock At Which Rights Become Exercisable	15.00%
Percentage of Common Stock Prior To Acquisition	50.00%
Percentage of Assets or Earning Power Sold	50.00%
Available to Distribute to the Holding Company as Cash Dividends [Member]
Note 13 - Stockholders' Equity (Details) [Line Items]
Retained Earnings, Unappropriated	60,400,000
Savings Bank [Member]
Note 13 - Stockholders' Equity (Details) [Line Items]
Liquidation Account, Conversion From Mutual to Stock Form	$ 1,000,000

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Note 18 - Fair Value of Financial Instruments (Details) - Quantitative Information About Recurring and Non-Recurring Level 3 Fair Value of Financial Instruments as Well as Assumptions Used in Estimating Fair Value (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Municipal [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	0.20%
Municipal [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	4.00%
Municipal [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(2.30%)
Municipal [Member]
Assets:
Fair Value (in Dollars)	15,519
Valuation Technique	Discounted cash flows
Unobservable Input	Discount rate
Trust Preferred Securities [Member] | Minimum [Member]
Assets:
Range (Weighted Average)	7.00%
Trust Preferred Securities [Member] | Maximum [Member]
Assets:
Range (Weighted Average)	7.25%
Trust Preferred Securities [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(7.20%)
Trust Preferred Securities [Member]
Assets:
Fair Value (in Dollars)	7,090
Valuation Technique	Discounted cash flows
Unobservable Input	Discount rate
Junior Subordinated Debentures [Member] | Weighted Average [Member]
Assets:
Range (Weighted Average)	(7.00%)
Junior Subordinated Debentures [Member]
Assets:
Fair Value (in Dollars)	28,771
Valuation Technique	Discounted cash flows
Unobservable Input	Discount rate
Range (Weighted Average)	7.00%

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Note 18 - Fair Value of Financial Instruments (Details) - Financial Assets and Liabilities Reported Under the Fair Value Option (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Measurements	$ 32,600
Changes in Fair Values For Items Measured at Fair Value Pursuant to Election of the Fair Value Option	(2,568)		(2,521)		55
Collateralized Mortgage Backed Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Measurements	4,678		7,119
Changes in Fair Values For Items Measured at Fair Value Pursuant to Election of the Fair Value Option	75		(725)		(539)
Other Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Measurements	27,915		30,163
Changes in Fair Values For Items Measured at Fair Value Pursuant to Election of the Fair Value Option	598		241		796
Borrowed Funds [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value Measurements	28,771		29,570
Changes in Fair Values For Items Measured at Fair Value Pursuant to Election of the Fair Value Option	802		(5,651)		2,062
Financial Assets And Liabilities, Excluding Interest Rate Caps / Swaps [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Changes in Fair Values For Items Measured at Fair Value Pursuant to Election of the Fair Value Option	$ 1,475	[1]	$ (6,135)	[1]	$ 2,319	[1]

[1] The net gain (loss) from fair value adjustments presented in the above table does not include net gains and (losses) of ($4.0) million, $3.6 million and ($2.3) million from the change in fair value of derivative instruments during the years ended December 31, 2014, 2013 and 2012, respectively.

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Note 6 - Debt and Equity Securities (Details) - Securities Available For Sale by Contractual Maturity (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Securities Available For Sale by Contractual Maturity [Abstract]
Due in one year or less	$ 23,513
Due in one year or less	23,516
Due after one year through five years	35,802
Due after one year through five years	37,050
Due after five years through ten years	68,620
Due after five years through ten years	68,097
Due after ten years	136,864
Due after ten years	139,714
Total other securities	264,799
Total other securities	268,377	261,634
Mortgage-backed securities	702,530
Mortgage-backed securities	704,933	756,156
Total securities available for sale	967,329	1,032,924
Total securities available for sale	$ 973,310	$ 1,017,790

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Note 8 - Deposits (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure Text Block [Abstract]

Schedule of Deposits and Weighted Average Rate on Deposits [Table Text Block]

	2014		2013		Weighted Average Rate 2014
	(Dollars in thousands)
Interest-bearing deposits:
Certificate of deposit accounts	$	1,305,823	$	1,120,955		1.65	%
Savings accounts		261,942		265,003		0.38
Money market accounts		290,263		199,907		0.32
NOW accounts		1,359,057		1,416,774		0.45
Total interest-bearing deposits		3,217,085		3,002,639
Non-interest bearing demand deposits		255,834		197,343
Total due to depositors		3,472,919		3,199,982
Mortgagors' escrow deposits		35,679		32,798		0.09
Total deposits	$	3,508,598	$	3,232,780

Schedule of Interest Expense on Deposits [Table Text Block]

	2014		2013		2012
	(In thousands)
Certificate of deposit accounts	$	22,420	$	24,414	$	32,983
Savings accounts		597		515		689
Money market accounts		667		294		399
NOW accounts		6,227		6,777		6,275
Total due to depositors		29,911		32,000		40,346
Mortgagors' escrow deposits		133		37		36
Total interest expense on deposits	$	30,044	$	32,037	$	40,382

Schedule of Remaining Maturities of Certificates of Deposit Accounts [Table Text Block]

	2014		2013
	(In thousands)
Within 12 months	$	455,295	$	459,016
More than 12 months to 24 months		269,840		318,215
More than 24 months to 36 months		229,931		158,050
More than 36 months to 48 months		176,876		51,508
More than 48 months to 60 months		148,424		108,489
More than 60 months		25,457		25,677
Total certificate of deposit accounts	$	1,305,823	$	1,120,955

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Note 12 - Pension and Other Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

12. Pension and Other Postretirement Benefit Plans

The amounts recognized in accumulated other comprehensive income, on a pre-tax basis, consist of the following, as of December 31:

	Net Actuarial loss (gain)									Prior Service cost (credit)									Total
	2014			2013			2012			2014			2013			2012			2014			2013			2012
	(In thousands)
Employee Retirement Plan	$	9,938		$	5,899		$	11,843		$	-		$	-		$	-		$	9,938		$	5,899		$	11,843
Other Postretirement Benefit Plans		2,130			205			1,199			(623	)		(708	)		(794	)		1,507			(503	)		405
Outside Directors Plan		(488	)		(496	)		(409	)		131			171			210			(357	)		(325	)		(199	)
Total	$	11,580		$	5,608		$	12,633		$	(492	)	$	(537	)	$	(584	)	$	11,088		$	5,071		$	12,049

Amounts in accumulated other comprehensive income to be recognized as components of net periodic expense for these plans in 2014 are as follows:

	Net Actuarial loss (gain)			Prior Service cost (credit)			Total
	(In thousands)
Employee Retirement Plan	$	1,162		$	-		$	1,162
Other Postretirement Benefit Plans		119			(85	)		34
Outside Directors Plan		(56	)		40			(16	)
	$	1,225		$	(45	)	$	1,180

Employee Retirement Plan:

The Bank has a funded noncontributory defined benefit retirement plan covering substantially all of its salaried employees who were hired before September 1, 2005 (the “Retirement Plan”). The benefits are based on years of service and the employee’s compensation during the three consecutive years out of the final ten years of service, which was completed prior to September 30, 2006, the date the Retirement Plan was frozen, that produces the highest average. The Bank’s funding policy is to contribute annually the amount recommended by the Retirement Plan’s actuary. The Bank’s Retirement Plan invests in diversified equity and fixed-income funds, which are independently managed by a third party. The Company did not make a contribution to the Retirement Plan during the year ended December 31, 2014. The Company contributed $0.8 million and $0.7 million to the Retirement Plan during the years ended December 31, 2013 and 2012, respectively. The Company used a December 31 measurement date for the Retirement Plan.

The following table sets forth, for the Retirement Plan, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	19,740		$	22,531
Service cost		-			-
Interest cost		891			827
Actuarial (gains) loss		4,446			(2,485	)
Benefits paid		(980	)		(1,133	)
Projected benefit obligation at end of year		24,097			19,740
Change in plan assets:
Market value of assets at beginning of year		20,496			17,300
Actual return on plan assets		993			3,498
Employer contributions		-			831
Benefits paid		(980	)		(1,133	)
Market value of plan assets at end of year		20,509			20,496
Accrued pension (liability) prepaid included in other (liabilities) assets	$	(3,588	)	$	756

Assumptions used to determine the Retirement Plan’s benefit obligations are as follows at December 31:

	2014			2013
Weighted average discount rate		3.76	%		4.60	%
Rate of increase in future compensation levels		n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%

The accumulated benefit obligation for the Retirement Plan was $24.1 million and $19.7 million at December 31, 2014 and 2013, respectively.

The components of the net pension expense for the Retirement Plan are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	-		$	-		$	-
Interest cost		891			827			879
Amortization of unrecognized loss		759			1,222			1,032
Expected return on plan assets		(1,344	)		(1,261	)		(1,257	)
Net pension expense (benefit)		306			788			654
Current year actuarial (gain) loss		4,798			(4,722	)		652
Amortization of actuarial loss		(759	)		(1,222	)		(1,032	)
Total recognized in other comprehensive income		4,039			(5,944	)		(380	)
Total recognized in net pension cost (benefit) and other comprehensive income	$	4,345		$	(5,156	)	$	274

Assumptions used to develop periodic pension cost for the Retirement Plan for the years ended December 31 were:

	2014			2013			2012
Weighted average discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a
Expected long-term rate of return on assets		7.50	%		7.50	%		7.50	%

The following benefit payments, which reflect expected future service, are expected to be paid by the Retirement Plan:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	1,094
2016		1,145
2017		1,161
2018		1,161
2019		1,181
2020 – 2024		6,490

The long-term rate-of-return-on-assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan's target allocation of asset classes. Equities and fixed income securities were assumed to earn real rates of return in the ranges of 8-10% and 3-5%, respectively. When these overall return expectations are applied to the plans target allocation, the result is an expected rate return of approximately 8%.

The Retirement Plan’s weighted average asset allocations at December 31, by asset category, were:

	2014			2013
Equity securities		68	%		69	%
Debt securities		32	%		31	%

Plan assets are invested in a diversified mix of stock and bond investment funds on the pooled account, group annuity platform of Prudential Retirement Services. Each fund has its own investment objectives, investment strategies and risks as detailed in its prospectus.

The long-term investment objectives are to maintain plan assets at a level that will sufficiently cover long-term obligations and to generate a return on plan assets that will meet or exceed the rate at which long-term obligations will grow. A combination of equity and fixed income portfolios are used to help achieve these objectives based on a long-term, liability based strategic mix of 60% equities and 40% fixed income. Adjustments to this mix are made periodically based on current capital market conditions and plan funding levels. Performance of the investment fund managers is monitored on an ongoing basis using modern portfolio risk analysis and appropriate index benchmarks.

The Bank does not expect to make a contribution to the Retirement Plan in 2015.

Pooled Separate Accounts – (Level 2) Valued as determined by the investment manager and is based on the value of the underlying assets held at December 31, 2014 and 2013.

The following table sets forth the employee pension plan’s assets that are carried at fair value, and the method that was used to determine their fair value, at December 31, 2014:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,832	$	-	$	4,832	$	-
U.S. large-cap value (b)		4,939		-		4,939		-
U.S. small-cap blend (c)		2,163		-		2,163		-
International blend (d)		1,966		-		1,966		-
Bond fund (e)		6,274		-		6,274		-
Prudential short term (f)		335		-		335		-
Total	$	20,509	$	-	$	20,509	$	-

a. Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index.  The portfolio will typically hold between 55 and 70 stocks.

b. Comprised of large-cap stocks seeking to outperform the Russell 1000® Value benchmark over the rolling three and five year periods, or a full market cycle, whichever is longer.

c. Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the time of purchase.  The portfolio will typically hold between 40 and 100 stocks.

d. Comprised of non-U.S. domiciled stocks.  The portfolio will typically hold between 80 and 90 stocks.

e. Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.

f. Comprised of money market instruments with an emphasis on safety and liquidity.

The following table sets forth the employee pension plan’s assets that are carried at fair value, and the method that was used to determine their fair value, at December 31, 2013:

			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	Total		Level 1		Level 2		Level 3
	(In thousands)
Pooled Separate Accounts
U.S. large-cap growth (a)	$	4,609	$	-	$	4,609	$	-
U.S. large-cap value (b)		4,625		-		4,625		-
U.S. small-cap blend (c)		2,536		-		2,536		-
International blend (d)		2,336		-		2,336		-
Bond fund (e)		5,993		-		5,993		-
Prudential short term (f)		397		-		397		-
Total	$	20,496	$	-	$	20,496	$	-

a. Comprised of large-cap stocks seeking to outperform, over the long term, the Russell 1000 Growth Index.  The portfolio will typically hold between 55 and 70 stocks.

b. Comprised of large-cap stocks seeking to outperform the Russell 1000® Value benchmark over the rolling three and five year periods, or a full market cycle, whichever is longer.

c. Comprised of stocks with market capitalization of between $100 million and the market capitalization of the largest stock in the Russell 2000 index at the time of purchase.  The portfolio will typically hold between 40 and 100 stocks.

d. Comprised of non-U.S. domiciled stocks.  The portfolio will typically hold between 80 and 90 stocks.

e. Comprised of a portfolio of fixed income securities including U.S agency mortgage-backed securities and investment grade bonds.

f. Comprised of money market instruments with an emphasis on safety and liquidity.

Other Postretirement Benefit Plans:

The Company sponsors two unfunded postretirement benefit plans (the “Postretirement Plans”) that cover all retirees who were full-time permanent employees with at least five years of service, and their spouses. Effective January 1, 2012, the Postretirement Plans are no longer available for new hires. One plan provides medical benefits through a 50% cost sharing arrangement. Effective January 1, 2000, the spouses of future retirees were required to pay 100% of the premiums for their coverage. The other plan provides life insurance benefits and is noncontributory. Effective January 1, 2010, life insurance benefits are not available for future retirees. Under these programs, eligible retirees receive lifetime medical and life insurance coverage for themselves and lifetime medical coverage for their spouses. The Company reserves the right to amend or terminate these plans at its discretion.

Comprehensive medical plan benefits equal the lesser of the normal plan benefit or the total amount not paid by Medicare. Life insurance benefits for retirees are based on annual compensation and age at retirement. As of December 31, 2014, the Company has not funded these plans. The Company used a December 31 measurement date for these plans.

The following table sets forth, for the Postretirement Plans, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	5,586		$	5,927
Service cost		358			449
Interest cost		253			219
Actuarial loss (gain)		1,925			(943	)
Benefits paid		(49	)		(66	)
Projected benefit obligation at end of year		8,073			5,586
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		49			66
Benefits paid		(49	)		(66	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(8,073	)	$	(5,586	)

The accumulated benefit obligation for the Postretirement Plans was $8.1 million and $5.6 million at December 31, 2014 and 2013, respectively.

Assumptions used in determining the actuarial present value of the accumulated postretirement benefit obligations at December 31 are as follows:

	2014			2013
Rate of return on plan assets		n/a			n/a
Discount rate		3.76	%		4.60	%
Rate of increase in health care costs
Initial		8.00	%		9.00	%
Ultimate (year 2018)		5.00	%		5.00	%
Annual rate of salary increase for life insurance		n/a			n/a

The resulting net periodic postretirement expense consisted of the following components for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	358		$	449		$	400
Interest cost		253			219			217
Amortization of unrecognized loss		-			50			40
Amortization of past service credit		(85	)		(85	)		(85	)
Net postretirement benefit expense		526			633			572
Current year actuarial (gain) loss		1,925			(943	)		211
Amortization of actuarial gain		-			(50	)		(40	)
Amortization of prior service credit		85			85			85
Total recognized in other comprehensive income		2,010			(908	)		256
Total recognized in net postretirement expense and other comprehensive income	$	2,536		$	(275	)	$	828

Assumptions used to develop periodic postretirement expense for the Postretirement Plans for the years ended December 31 were:

	2014			2013			2012
Rate of return on plan assets		n/a			n/a			n/a
Discount rate		4.60	%		3.75	%		4.25	%
Rate of increase in health care costs
Initial		9.00	%		10.00	%		10.50	%
Ultimate (year 2018)		5.00	%		5.00	%		5.50	%
Annual rate of salary increase for life insurance		n/a			n/a			n/a

The health care cost trend rate assumptions have a significant effect on the amounts reported. A one percentage point change in assumed health care trend rates would have the following effects:

	Increase		Decrease
	(In thousands)
Effect on postretirement benefit obligation	$	1,682	$	(1,271	)
Effect on total service and interest cost		187		(137	)

The Company expects to pay benefits of $181,000 under its Postretirement Plans in 2015.

The following benefit payments under the Postretirement Plan, which reflect expected future service, are expected to be paid:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	181
2016		208
2017		232
2018		254
2019		272
2020 - 2024		1,509

Defined Contribution Plans:

The Company maintains a tax qualified 401(k) plan which covers substantially all salaried employees who have completed one year of service. Currently, annual matching contributions under the Bank’s 401(k) plan equal 50% of the employee’s contributions, up to a maximum of 3% of the employee’s compensation. In addition, the 401(k) plan includes the Defined Contribution Retirement Plan (“DCRP”), under which the Bank contributes an amount equal to 4% of an employee’s eligible compensation as defined in the plan, and the Profit Sharing Plan (“PSP”), under which at the discretion of the Company’s Board of Directors a contribution is made.  Contributions for the DCRP and PSP are made in the form of Company common stock at or after the end of each year. Annual contributions under these plans are subject to the limits imposed under the Internal Revenue Code. Contributions by the Company into the 401(k) plan vest 20% per year over the employee's first five years of service. Contributions to these plans also 100% vest upon a change of control (as defined in the applicable plan). Compensation expense recorded by the Company for these plans amounted to $3.1 million, $2.9 million and $2.4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

The Bank provides a non-qualified deferred compensation plan as an incentive for officers who have achieved the level of at least Senior Vice President and have at least one year of service. However, officers who had achieved at least the level of Vice President and completed one year of service prior to January 1, 2009 remain eligible to participate in the plan.  In addition to the amounts deferred by the officers, the Bank matches 50% of their contributions, generally up to a maximum of 5% of the officers’ salary. Matching contributions under this plan vest 20% per year for five years. They also become 100% vested upon a change of control (as defined in the plan). Compensation expense recorded by the Company for this plan amounted to $0.4 million for each of the years ended December 31, 2014, 2013 and 2012.

Employee Benefit Trust:

An Employee Benefit Trust (“EBT”) has been established to assist the Company in funding its benefit plan obligations. In connection with the Savings Bank’s conversion to a federal stock savings bank in 1995, the EBT borrowed $7.9 million from the Company and used $7,000 of cash received from the Savings Bank to purchase 2,328,750 shares of the common stock of the Company. The loan was repaid from the Company’s discretionary contributions to the EBT and dividend payments received on common stock held by the EBT. During the year ended December 31, 2010, the loan was fully repaid.  Dividend payments received subsequent to the loan being repaid are used to purchase additional shares of common stock. Shares purchased with the loan proceeds are held in a suspense account for contribution to specified benefit plans. Shares released from the suspense account are used solely for funding matching contributions under the Bank’s 401(k) plan, contributions to the 401(k) plan for the DCRP, and contributions to the PSP. Since annual contributions are discretionary with the Company or dependent upon employee contributions, compensation payable under the EBT cannot be estimated. For the years ended December 31, 2014, 2013 and 2012, the Company funded $2.7 million, $2.3 million and $2.1 million, respectively, of employer contributions to the 401(k), DCRP and profit sharing plans from the EBT.

Upon a change of control (as defined in the EBT), the EBT will terminate and any trust assets remaining after certain benefit plan contributions will be distributed to all full-time employees of the Company with at least one year of service, in proportion to their compensation over the four most recently completed calendar years plus the portion of the current year prior to the termination of the EBT.

As shares are released from the suspense account, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations. The EBT shares are as follows at December 31:

	2014			2013
Shares owned by Employee Benefit Trust, beginning balance		913,792			1,028,565
Shares purchased		23,717			29,168
Shares released and allocated		(136,559	)		(143,941	)
Shares owned by Employee Benefit Trust, ending balance		800,950			913,792
Market value of unallocated shares.	$	16,235,257		$	18,915,494

Outside Director Retirement Plan:

The Bank has an unfunded noncontributory defined benefit Outside Director Retirement Plan (the “Directors’ Plan”), which provides benefits to each non-employee director who became a non-employee director before January 1, 2004, who has at least five years of service as a non-employee director and whose years of service as a non-employee director plus age equals or exceeds 55. Benefits are also payable to a non-employee director who became a non-employee director before January 1, 2004 and whose status as a non-employee director terminates because of death or disability or who is a non-employee director upon a change of control (as defined in the Directors’ Plan). Any person who became a non-employee director after January 1, 2004 is not eligible to participate in the Directors’ Plan. Upon termination an eligible director will be paid an annual retirement benefit equal to $48,000. Such benefit will be paid in equal monthly installments for the lesser of the number of months such director served as a non-employee director or 120 months. In the event of a termination of Board service due to a change of control, a non-employee director who has completed at least two years of service as a non-employee director will receive a cash lump sum payment equal to 120 months of benefit, and a non-employee director with less than two years of service will receive a cash lump sum payment equal to a number of months of benefit equal to the number of months of his service as a non-employee director. In the event of the director’s death, the surviving spouse will receive the equivalent benefit. No benefits will be payable to a director who is removed for cause. The Holding Company has guaranteed the payment of benefits under the Directors’ Plan. Upon adopting the Directors’ Plan, the Bank elected to immediately recognize the effect of adopting the Directors’ Plan. Subsequent plan amendments are amortized as a past service liability. The Bank used a December 31 measurement date for the Directors’ Plan.

The following table sets forth, for the Directors’ Plan, the change in benefit obligation and assets, and for the Company, the amounts recognized in the Consolidated Statements of Financial Condition at December 31:

	2014			2013
	(In thousands)
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	2,666		$	2,706
Service cost		54			82
Interest cost		116			98
Actuarial gain		(53	)		(122	)
Benefits paid		(120	)		(98	)
Projected benefit obligation at end of year		2,663			2,666
Change in plan assets:
Market value of assets at beginning of year		-			-
Employer contributions		120			98
Benefits paid		(120	)		(98	)
Market value of plan assets at end of year		-			-
Accrued pension cost included in other liabilities	$	(2,663	)	$	(2,666	)

The accumulated benefit obligation for the Directors’ Plan was $2.7 million at December 31, 2014 and 2013.

The components of the net pension expense for the Directors’ Plan are as follows for the years ended December 31:

	2014			2013			2012
	(In thousands)
Service cost	$	54		$	82		$	80
Interest cost		116			98			110
Amortization of unrecognized gain		(60	)		(36	)		(29	)
Amortization of past service liability		40			40			40
Net pension expense		150			184			201
Current actuarial gain		(52	)		(122	)		(44	)
Amortization of actuarial gain		60			36			29
Amortization of prior service cost		(40	)		(40	)		(40	)
Total recognized in other comprehensive income		(32	)		(126	)		(55	)
Total recognized in net pension expense and other comprehensive income	$	118		$	58		$	146

Assumptions used to determine benefit obligations and periodic pension expense for the Directors’ Plan for the years ended December 31 were:

	2014			2013			2012
Weighted average discount rate for the benefit obligation		3.76	%		4.60	%		3.75	%
Weighted average discount rate for periodic pension benefit expense		4.60	%		3.75	%		4.25	%
Rate of increase in future compensation levels		n/a			n/a			n/a

The following benefit payments under the Directors’ Plan, which reflect expected future service, are expected to be paid:

For the years ending December 31:	Future Benefit Payments
	(In thousands)
2015	$	288
2016		288
2017		288
2018		272
2019		288
2020 – 2024		1,336

The Company expects to make payments of $288,000 under its Directors’ Plan in 2015.

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Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Components of the Net Pension Expense for the Retirement Plan (Retirement Plan [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Retirement Plan [Member]
Note 12 - Pension and Other Postretirement Benefit Plans (Details) - The Components of the Net Pension Expense for the Retirement Plan [Line Items]
Interest cost	$ 891	$ 827	$ 879
Amortization of unrecognized loss	759	1,222	1,032
Expected return on plan assets	(1,344)	(1,261)	(1,257)
Net pension expense (benefit)	306	788	654
Current year actuarial (gain) loss	4,798	(4,722)	652
Amortization of actuarial loss	(759)	(1,222)	(1,032)
Total recognized in other comprehensive income	4,039	(5,944)	(380)
Total recognized in net pension cost (benefit) and other comprehensive income	$ 4,345	$ (5,156)	$ 274